
	Guarantor and Non-Guarantor Statements

ON Semiconductor is the sole issuer of the Convertible Notes. ON Semiconductor’s domestic subsidiaries, except those domestic subsidiaries acquired through the acquisitions of AMIS, Catalyst Semiconductor, Inc., PulseCore Holdings (Cayman) Inc., California Micro Devices, Sound Design Technologies, and SANYO Semiconductor (collectively, the “Guarantor Subsidiaries”), fully and unconditionally guarantee on a joint and several basis ON Semiconductor’s obligations under the Convertible Notes. The Guarantor Subsidiaries include SCI LLC and Semiconductor Components Industries of Rhode Island, Inc., as well as other holding companies whose net assets consist primarily of investments in the joint venture in Leshan, China and equity interests in the Company’s other foreign subsidiaries. ON Semiconductor’s other remaining subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) are not guarantors of the Convertible Notes. The repayment of the unsecured Convertible Notes is subordinated to the senior indebtedness of ON Semiconductor and the Guarantor Subsidiaries on the terms described in the indentures for such Convertible Notes. Condensed consolidated financial information for the issuer of the Convertible Notes, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries is as follows (in millions):



	Issuer			Guarantor
	ON Semiconductor Corporation ⁽¹⁾			SCI LLC			Other Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
As of June 29, 2012
Cash and cash equivalents	$	—		$	249.7		$	—		$	268.1		$	—		$	517.8
Short-term investments	—			238.6			—			—			—			238.6
Receivables, net	—			57.9			—			381.9			—			439.8
Inventories	—			39.5			—			624.6			(4.4		)	659.7
Other current assets	—			13.1			—			75.7			—			88.8
Deferred income taxes, net of allowances	—			5.5			—			4.5			—			10.0
Total current assets	—			604.3			—			1,354.8			(4.4		)	1,954.7
Property, plant and equipment, net	—			273.9			2.8			927.4			(2.7		)	1,201.4
Deferred income taxes, net of allowances	—			—			—			33.1			—			33.1
Goodwill	—			125.7			37.3			35.7			—			198.7
Intangible assets, net	—			143.2			—			199.6			(28.0		)	314.8
Investments and other assets	2,002.0			1,263.5			63.9			811.7			(4,073.1		)	68.0
Total assets	$	2,002.0		$	2,410.6		$	104.0		$	3,362.3		$	(4,108.2	)	$	3,770.7
Accounts payable	$	—		$	34.4		$	0.1		$	381.9		$	—		$	416.4
Accrued expenses	—			57.9			0.8			223.0			1.7			283.4
Income taxes payable	—			(6.9		)	—			11.1			—			4.2
Accrued interest	0.5			0.2			—			0.2			—			0.9
Deferred income on sales to distributors				37.4			—			114.8			—			152.2
Deferred income taxes, net of allowances				—			—			32.3			—			32.3
Current portion of long-term debt	91.7			75.3			0.1			98.2			—			265.3
Total current liabilities	92.2			198.3			1.0			861.5			1.7			1,154.7
Long-term debt	392.3			367.7			—			45.0			—			805.0
Other long-term liabilities				26.6			0.3			219.7			—			246.6
Deferred income taxes, net of allowances				5.5			—			14.3			—			19.8
Intercompany	0.3			(332.2		)	(54.2		)	180.6			205.5			—
Total liabilities	484.8			265.9			(52.9		)	1,321.1			207.2			2,226.1
Common stock	5.1			0.3			50.9			147.2			(198.4		)	5.1
Additional paid-in capital	3,133.6			2,618.8			249.9			1,347.7			(4,216.4		)	3,133.6
Accumulated other comprehensive loss	(44.7		)	(44.8		)	—			(36.9		)	81.7			(44.7		)
Accumulated deficit	(1,167.2		)	(429.6		)	(143.9		)	583.2			(9.7		)	(1,167.2		)
Less: treasury stock, at cost	(409.6		)	—			—			—			—			(409.6		)
Total ON Semiconductor Corporation stockholders’ equity (deficit)	1,517.2			2,144.7			156.9			2,041.2			(4,342.8		)	1,517.2
Non-controlling interests in consolidated subsidiaries	—			—			—			—			27.4			27.4
Total equity	1,517.2			2,144.7			156.9			2,041.2			(4,315.4		)	1,544.6
Total liabilities and equity	$	2,002.0		$	2,410.6		$	104.0		$	3,362.3		$	(4,108.2	)	$	3,770.7



	Issuer			Guarantor
	ON Semiconductor Corporation ⁽¹⁾			SCI LLC			Other Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
As of December 31, 2011
Cash and cash equivalents	$	—		304.5			(0.2		)	$	348.6		—			$	652.9
Short-term investments	—			248.6			—			—			—			248.6
Receivables, net	—			64.7			—			392.5			—			457.2
Inventories	—			36.2			—			599.3			1.9			637.4
Other current assets	—			7.5			—			114.1			—			121.6
Deferred income taxes, net of allowances	—			5.5			—			4.5			—			10.0
Total current assets	—			667.0			(0.2		)	1,459.0			1.9			2,127.7
Property, plant and equipment, net	—			255.2			2.3			854.5			(2.5		)	1,109.5
Deferred income taxes, net of allowances	—			—			—			34.2			—			34.2
Goodwill	—			125.7			37.3			35.7			—			198.7
Intangible assets, net	—			152.3						215.0			(30.1		)	337.2
Investments and other assets	2,036.2			1,303.5			59.1			846.9			(4,169.5		)	76.2
Total assets	$	2,036.2		$	2,503.7		$	98.5		$	3,445.3		$	(4,200.2	)	$	3,883.5
Accounts payable	$	—		$	32.8		0.1			418.9			—			$	451.8
Accrued expenses	—			61.0			0.8			176.3			1.7			239.8
Income taxes payable	—			(0.1		)	—			7.6			—			7.5
Accrued interest	0.6			—			—			0.1			—			0.7
Deferred income on sales to distributors	—			43.7			—			128.3			—			172.0
Deferred income taxes, net of allowances	—			—			—			33.6			—			33.6
Current portion of long-term debt	182.6			74.1			—			113.4			—			370.1
Total current liabilities	183.2			211.5			0.9			878.2			1.7			1,275.5
Long-term debt	384.5			393.8			—			58.6			—			836.9
Other long-term liabilities	—			26.6			0.4			233.1			—			260.1
Deferred income tax, net of allowances	—			5.5			—			12.0			—			17.5
Intercompany	0.3			(318.2		)	(54.5		)	166.9			205.5			—
Total liabilities	568.0			319.2			(53.2		)	1,348.8			207.2			2,390.0
Common stock	5.0			0.3			50.9			146.9			(198.1		)	5.0
Additional paid-in capital	3,113.5			2,711.2			238.4			1,359.2			(4,308.8		)	3,113.5
Accumulated other comprehensive loss	(46.7		)	(46.7		)	—			(39.2		)	85.9			(46.7		)
Accumulated deficit	(1,202.3		)	(480.3		)	(137.6		)	629.6			(11.7		)	(1,202.3		)
Less: treasury stock, at cost	(401.3		)	—			—			—			—			(401.3		)
Total ON Semiconductor Corporation stockholders’ equity (deficit)	1,468.2			2,184.5			151.7			2,096.5			(4,432.7		)	1,468.2
Non-controlling interests in consolidated subsidiaries	—			—			—			—			25.3			25.3
Total equity	1,468.2			2,184.5			151.7			2,096.5			(4,407.4		)	1,493.5
Total liabilities and equity	$	2,036.2		$	2,503.7		$	98.5		$	3,445.3		$	(4,200.2	)	$	3,883.5



	Issuer			Guarantor Subsidiaries
	ON Semiconductor Corporation ⁽¹⁾			SCI LLC			Other Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
For the quarter ended June 29, 2012
Revenues	$	—		$	202.4		$	6.6	$	910.2		$	(374.4	)	$	744.8
Cost of product revenues	—			118.3			0.2		745.8			(377.8		)	486.5
Gross profit	—			84.1			6.4		164.4			3.4			258.3
Research and development	—			49.7			2.7		45.4			—			97.8
Selling and marketing	—			16.8			0.2		30.0			—			47.0
General and administrative	—			17.2			—		23.7			—			40.9
Amortization of acquisition related intangible assets	—			4.6			—		7.6			(1.1		)	11.1
Restructuring, asset impairments and other, net	—			0.2			—		34.4			—			34.6
Total operating expenses	—			88.5			2.9		141.1			(1.1		)	231.4
Operating income (loss)	—			(4.4		)	3.5		23.3			4.5			26.9
Interest expense	(9.5		)	(2.4		)	—		(2.2		)	—			(14.1		)
Interest income	—			0.2			—		0.1			—			0.3
Other	—			(3.0		)	—		5.3			—			2.3
Equity in earnings	16.4			25.3			3.0		—			(44.7		)	—
Income (loss) before income taxes	6.9			15.7			6.5		26.5			(40.2		)	15.4
Income tax provision	—			(2.0		)	—		(5.2		)	—			(7.2		)
Net income (loss)	6.9			13.7			6.5		21.3			(40.2		)	8.2
Net income attributable to non-controlling interest	—			—			—		—			(1.3		)	(1.3		)
Net income (loss) attributable to ON Semiconductor Corporation	$	6.9		$	13.7		$	6.5	$	21.3		$	(41.5	)	$	6.9
Comprehensive income:
Net income	$	6.9		$	13.7		$	6.5	$	21.3		$	(40.2	)	$	8.2
Foreign currency translation adjustments	(2.6		)	(0.8		)	—		(0.8		)	1.6			(2.6		)
Effects of cash flow hedges	(0.3		)	(0.3		)	—		—			0.3			(0.3		)
Unrealized gain on available-for-sale securities	(0.2		)	—			—		(0.8		)	0.8			(0.2		)
Amortization of prior service costs of defined benefit plan	—			—			—		—			—			—
Comprehensive income	3.8			12.6			6.5		19.7			(37.5		)	5.1
Comprehensive income attributable to non-controlling interest	—			—			—		—			(1.3		)	$	(1.3	)
Comprehensive income attributable to ON Semiconductor Corporation:	$	3.8		$	12.6		$	6.5	$	19.7		$	(38.8	)	$	3.8



	Issuer			Guarantor Subsidiaries
	ON Semiconductor Corporation ⁽¹⁾			SCI LLC			Other Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
For the quarter ended July 1, 2011
Revenues	$	—		$	198.9		$	7.4	$	1,057.5		$	(358.0	)	$	905.8
Cost of product revenues	—			135.5			0.2		865.2			(361.2		)	639.7
Gross profit	—			63.4			7.2		192.3			3.2			266.1
Research and development	—			48.7			2.7		37.8			—			89.2
Selling and marketing	—			17.9			0.3		33.0			—			51.2
General and administrative	—			22.9			0.3		29.1			—			52.3
Amortization of acquisition related intangible assets	—			4.6			—		7.9			(1.1		)	11.4
Restructuring, asset impairments and other, net	—			2.8			—		2.3			—			5.1
Total operating expenses	—			96.9			3.3		110.1			(1.1		)	209.2
Operating income (loss)	—			(33.5		)	3.9		82.2			4.3			56.9
Interest expense	(13.1		)	(1.8		)	—		(2.9		)	—			(17.8		)
Interest income	—			0.1			—		0.1			—			0.2
Other	—			(0.8		)	—		(0.2		)	—			(1.0		)
Equity in earnings	47.4			91.1			1.8		—			(140.3		)	—
Income (loss) before income taxes	34.3			55.1			5.7		79.2			(136.0		)	38.3
Income tax provision	—			10.1					(13.3		)	—			(3.2		)
Net income (loss)	34.3			65.2			5.7		65.9			(136.0		)	35.1
Net income attributable to non-controlling interest	—			—			—		—			(0.8		)	(0.8		)
Net income (loss) attributable to ON Semiconductor Corporation	$	34.3		$	65.2		$	5.7	$	65.9		$	(136.8	)	$	34.3
Comprehensive income:
Net income	$	34.3		$	65.2		$	5.7	$	65.9		$	(136.0	)	$	35.1
Foreign currency translation adjustments	0.1			0.1								(0.1		)	0.1
Effects of cash flow hedges	—			—			—		—			—			—
Unrealized gain on available-for-sale securities	—			—			—		—			—			—
Amortization of prior service costs of defined benefit plan	—			—			—		—			—			—
Comprehensive income	34.4			65.3			5.7		65.9			(136.1		)	35.2
Comprehensive income attributable to non-controlling interest	—			—			—		—			(0.8		)	$	(0.8	)
Comprehensive income attributable to ON Semiconductor Corporation:	$	34.4		$	65.3		$	5.7	$	65.9		$	(136.9	)	$	34.4

Issuer

Guarantor

Subsidiaries



	ON Semiconductor Corporation ⁽¹⁾			SCI LLC			Other Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
For the six months ended June 29, 2012
Revenues	$	—		$	388.0		$	6.6		$	1,803.7		$	(709.1	)	$	1,489.2
Cost of product revenues	—			234.4			0.4			1,453.9			(703.0		)	985.7
Gross profit	—			153.6			6.2			349.8			(6.1		)	503.5
Research and development	—			92.9			5.3			91.0			—			189.2
Selling and marketing	—			33.9			0.4			58.3			—			92.6
General and administrative	—			32.4			0.2			50.3			—			82.9
Amortization of acquisition related intangible assets	—			9.1			—			15.2			(2.1		)	22.2
Restructuring, asset impairments and other, net	—			0.2			—			45.9			—			46.1
Total operating expenses	—			168.5			5.9			260.7			(2.1		)	433.0
Operating income (loss)	—			(14.9		)	0.3			89.1			(4.0		)	70.5
Interest expense	(20.4		)	(4.7		)	—			(4.7		)	—			(29.8		)
Interest income	—			0.5			—			0.3			—			0.8
Other	—			3.2			—			3.8			—			7.0
Equity in earnings	55.5			60.2			4.9			—			(120.6		)	—
Income (loss) before income taxes	35.1			44.3			5.2			88.5			(124.6		)	48.5
Income tax provision	—			6.5			—			(17.8		)	—			(11.3		)
Net income (loss)	35.1			50.8			5.2			70.7			(124.6		)	37.2
Net income attributable to non-controlling interest	—			—			—			—			(2.1		)	(2.1		)
Net income (loss) attributable to ON Semiconductor Corporation	$	35.1		$	50.8		$	5.2		$	70.7		$	(126.7	)	$	35.1
Comprehensive income:
Net income	$	35.1		$	50.8		$	5.2		$	70.7		$	(124.6	)	$	37.2
Foreign currency translation adjustments	2.3			—			—			3.3			(3.3		)	2.3
Effects of cash flow hedges	(0.7		)	(0.7		)	—			—			0.7			(0.7		)
Unrealized gain on available-for-sale securities	0.3			—			—			(0.3		)	0.3			0.3
Amortization of prior service costs of defined benefit plan	0.1			—			—			0.1			(0.1		)	0.1
Comprehensive income	37.1			50.1			5.2			73.8			(127.0		)	39.2
Comprehensive income attributable to non-controlling interest	—			—			—			—			(2.1		)	$	(2.1	)
Comprehensive income attributable to ON Semiconductor Corporation:	$	37.1		$	50.1		$	5.2		$	73.8		$	(129.1	)	$	37.1
Net cash (used in) provided by operating activities	$	—		$	84.3		$	0.9		$	42.3		$	—		$	127.5
Cash flows from investing activities:
Purchases of property, plant and equipment	—			(38.6		)	(0.7		)	(75.4		)	—			(114.7		)
Proceeds from sales of property, plant and equipment	—			—			—			1.9			—			1.9
Deposits utilized for purchases of property, plant and equipment	—			—			—			(2.5		)	—			(2.5		)
Recovery from insurance on property, plant and equipment	—			—			—			11.5			—			11.5
Proceeds from held-to-maturity securities	—			232.6			—			—			—			232.6
Purchase of held-to-maturity securities	—			(222.6		)	—			—			—			(222.6		)
Net cash used in investing activities	—			(28.6		)	(0.7		)	(64.5		)	—			(93.8		)
Cash flows from financing activities:
Intercompany loans	—			(180.6		)	—			180.6			—			—
Intercompany loan repayments	—			188.2			—			(188.2		)	—			—
Proceeds from debt issuance	—			—			—			2.0			—			2.0
Proceeds from exercise of stock options	—			5.3			—			—			—			5.3



Proceeds from employee stock purchase plan	—		2.3			—			—			—		2.3
Payment of capital lease obligations	—		(19.1		)	—			(2.1		)	—		(21.2		)
Purchase of treasury stock	—		(8.3		)	—			—			—		(8.3		)
Repayment of long term debt	—		(98.3		)	—			(48.2		)	—		(146.5		)
Net cash provided by (used in) financing activities	—		(110.5		)	—			(55.9		)	—		(166.4		)
Effect of exchange rate changes on cash and cash equivalents	—		—			—			(2.4		)	—		(2.4		)
Net increase (decrease) in cash and cash equivalents	—		(54.8		)	0.2			(80.5		)	—		(135.1		)
Cash and cash equivalents, beginning of period	—		304.5			(0.2		)	348.6			—		652.9
Cash and cash equivalents, end of period	$	—	$	249.7		$	—		$	268.1		$	—	$	517.8



	Issuers			Guarantor Subsidiaries
	ON Semiconductor Corporation ⁽¹⁾			SCI LLC			Other Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
For the six months ended July 1, 2011
Revenues	$	—		$	398.7		$	7.5		$	2,069.3		$	(699.1	)	$	1,776.4
Cost of product revenues	—			271.8			0.5			1,689.7			(694.1		)	1,267.9
Gross profit	—			126.9			7.0			379.6			(5.0		)	508.5
Research and development	—			93.8			5.6			80.9			—			180.3
Selling and marketing	—			36.9			0.5			63.2			—			100.6
General and administrative	—			49.4			0.4			49.6			—			99.4
Amortization of acquisition related intangible assets	—			9.1			—			14.1			(2.1		)	21.1
Restructuring, asset impairments and other, net	—			2.8			—			14.7			—			17.5
Total operating expenses	—			192.0			6.5			222.5			(2.1		)	418.9
Operating income (loss)	—			(65.1		)	0.5			157.1			(2.9		)	89.6
Interest expense	(26.0		)	(3.9		)	—			(5.7		)	—			(35.6		)
Interest income	—			0.1			—			0.4			—			0.5
Other	—			3.4			—			(6.9		)	—			(3.5		)
Gain (loss) on SANYO Semiconductor acquisition	—			24.3			—			—			—			24.3
Equity in earnings	95.8			133.5			3.5			—			(232.8		)	—
Income (loss) before income taxes	69.8			92.3			4.0			144.9			(235.7		)	75.3
Income tax provision	—			11.1			—			(15.1		)	—			(4.0		)
Net income (loss)	69.8			103.4			4.0			129.8			(235.7		)	71.3
Net income (loss) attributable to non-controlling interest	—			—			—			—			(1.5		)	(1.5		)
Net income (loss) attributable to ON Semiconductor Corporation	$	69.8		$	103.4		$	4.0		$	129.8		$	(237.2	)	$	69.8
Comprehensive income (loss):
Net income (loss)	$	69.8		$	103.4		$	4.0		$	129.8		$	(235.7	)	$	71.3
Foreign currency translation adjustments	4.4						—			4.4			(4.4		)	4.4
Amortization of prior service costs of defined benefit plan	0.2			—			—			0.2			(0.2		)	0.2
Comprehensive income	74.4			103.4			4.0			134.4			(240.3		)	75.9
Comprehensive income attributable to non-controlling interests	—			—			—			—			(1.5		)	(1.5		)
Comprehensive income (loss) attributable to ON Semiconductor Corporation	$	74.4		$	103.4		$	4.0		$	134.4		$	(241.8	)	$	74.4
Net cash provided by operating activities	$	—		$	(157.7	)	$	0.1		$	419.2		$	—		$	261.6
Cash flows from investing activities:
Purchases of property, plant and equipment	—			(42.8		)	(0.1		)	(130.6		)	—			(173.5		)
Purchase of a business, net of cash acquired	—			69.1			—			(87.0		)	—			(17.9		)



Proceeds from sale of property, plant and equipment	—		0.1			—			3.2			—		3.3
Purchase of held-to-maturity securities	—		(112.2		)	—			—			—		(112.2		)
Purchase of restricted cash	—		142.1			—			—			—		142.1
Net cash used in investing activities	—		56.3			(0.1		)	(214.4		)	—		(158.2		)
Cash flows from financing activities:
Intercompany loans	—		(89.9		)	—			89.9			—		—
Intercompany loan repayments	—		258.1			—			(258.1		)	—		—
Proceeds from issuance of common stock under the employee stock purchase plan	—		4.0			—			—			—		4.0
Proceeds from debt issuance	—		—			—			41.3			—		41.3
Proceeds from exercise of stock options	—		57.1			—			—			—		57.1
Payment of capital lease obligations	—		(18.4		)	—			(0.2		)	—		(18.6		)
Purchase of treasury stock	—		(12.1		)	—			—			—		(12.1		)
Repayment of long term debt	—		(0.6		)				(43.2		)	—		(43.8		)
Net cash used in financing activities	—		198.2			—			(170.3		)	—		27.9
Effect of exchange rate changes on cash and cash equivalents	—		—			—			2.0			—		2.0
Net increase (decrease) in cash and cash equivalents	—		96.8			—			36.5			—		133.3
Cash and cash equivalents, beginning of period	—		392.3			—			231.0			—		623.3
Cash and cash equivalents, end of period	$	—	$	489.1		$	—		$	267.5		$	—	$	756.6

___________________


(1)	ON Semiconductor is a holding company and has no operations apart from those of its operating subsidiaries. Additionally, ON Semiconductor does not maintain a bank account; rather SCI LLC, its primary domestic operating subsidiary, processes all of its cash receipts and disbursements on its behalf.

See also Note 9: “Commitments and Contingencies—Other Contingencies” for further discussion of the Company’s guarantees.