Item 16C. Principal Accountant Fees and Services
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Item 16C. Principal Accountant Fees and Services
The Company has instituted a comprehensive auditor independence policy that regulates the relation between the Company and its external auditors and is available on our website (www.nxp.com/investor/governance). The policy includes rules for the pre-approval by the audit committee of all services to be provided by the external auditor. The policy also describes the prohibited services that may not be provided. Proposed services may be pre-approved at the beginning of the year by the audit committee (annual pre-approval) or may be pre-approved during the year by the audit committee in respect of a particular engagement (specific pre-approval). The annual pre-approval is based on a detailed, itemized list of services to be provided, designed to ensure that there is no management discretion in determining whether a service has been approved and to ensure the audit committee is informed of each service it is pre-approving. Unless pre-approval with respect to a specific service has been given at the beginning of the year, each proposed service requires specific pre-approval during the year. Any annually pre-approved services where the fee for the engagement is expected to exceed pre-approved cost levels or budgeted amounts will also require specific pre-approval. The term of any annual pre-approval is 12 months from the date of the pre-approval unless the audit committee states otherwise. During 2012, there were no services provided to the Company by the external auditors which were not pre-approved by the audit committee.
The external auditor attends, in principle, all meetings of the audit committee. The findings of the external auditor, the audit approach and the risk analysis are also discussed at these meetings. The external auditor attends the meeting of the board of directors at which the report of the external auditor with respect to the audit of the annual accounts is discussed, and at which the annual accounts are approved. In its audit report on the annual accounts to the board of directors, the external auditor refers to the financial reporting risks and issues that were identified during the audit, internal control matters, and any other matters, as appropriate, requiring communication under the auditing standards generally accepted in the Netherlands and the United States.
Our Consolidated Financial Statements included in this Report have been audited by KPMG Accountants N.V., an independent registered public accounting firm. These financial statements have been approved by the relevant boards.
The aggregate fees billed for professional services rendered for the fiscal periods 2012 and 2011 were as follows:
Aggregate fees KPMG
| ($ in millions) | 2012 | 2011 | ||||||
| Audit fees | 3.3 | 3.7 | ||||||
| Audit-related fees | 0.9 | 1.4 | ||||||
| Tax fees | — | — | ||||||
| Other fees | 0.2 | 0.1 | ||||||
| 4.4 | 5.2 |
Audit fees consist of fees for the examination of both the consolidated and statutory financial statements.
Audit-related fees consist of fees in connection with audits of acquisitions, divestments and registration statements.
Tax fees consist of fees for professional services in relation to tax compliance, tax advice and tax planning.
Table of Contents
Item 16D. Exemptions from the Listing Standards for Audit Committees
Not applicable.
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table provides a summary of shares repurchased by the Company in 2012:
| Date | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | |||||||||
| April 26, 2012 | 79,513 | $ | 25.0100 | 79,513 | ||||||||
| April 27, 2012 | 100,000 | $ | 26.3721 | 100,000 | ||||||||
| May 1, 2012 | 4,100 | $ | 25.6856 | 4,100 | ||||||||
| May 2, 2012 | 98,641 | $ | 25.7805 | 98,641 | ||||||||
| May 3, 2012 | 200,000 | $ | 25.5676 | 200,000 | ||||||||
| May 4, 2012 | 100,000 | $ | 25.5832 | 100,000 | ||||||||
| May 8, 2012 | 46,485 | $ | 24.3642 | 46,485 | ||||||||
| May 9, 2012 | 44,150 | $ | 23.3674 | 44,150 | ||||||||
| June 7, 2012 | 300,000 | $ | 20.2950 | 300,000 | ||||||||
| June 8, 2012 | 248,845 | $ | 20.1082 | 248,845 | ||||||||
| June 11, 2012 | 285,243 | $ | 20.0183 | 285,243 | ||||||||
| June 12, 2012 | 40,688 | $ | 19.9171 | 40,688 | ||||||||
| June 14, 2012 | 146,089 | $ | 20.0378 | 146,089 | ||||||||
| June 24, 2012 | 149,940 | $ | 21.6354 | 149,940 |
In 2012, the General Meeting of Shareholders authorized the Board of Directors to repurchase shares of our common stock. On that basis, the Board of Directors resolved to repurchase shares to cover in part employee stock options and equity rights under its long term incentive plans. The purchases identified in the table were all pursuant to this authorization.
Item 16F. Change in Registrant’s Certifying Accountant
Not applicable.
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