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 ). 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 2017, 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 Annual Report have been audited by KPMG Accountants N.V., an independent registered public accounting firm. These financial statements have been approved by the board of directors.
The following table shows the fees billed by KPMG for audit and other services provided for fiscal years 2017 and 2016. All figures are net of Value Added Tax and other similar taxes assessed on the amount billed by KPMG. All of the services reflected in the following fee table were approved in conformity with the Audit Committee’s pre-approval process.
| ($ in millions) | 2017 | 2016 | ||||||
| Audit Services | 4.7 | 3.8 | ||||||
| Audit-Related Services | 0.2 | — | ||||||
| Tax Services | — | — | ||||||
| All Other Services | — | 0.1 | ||||||
| Total | 4.9 | 3.9 |
Table of Contents
Audit Services.
This category includes KPMG’s audit of our annual financial statements and internal control over financial reporting, review of financial statements included in our quarterly reports, and services that are typically provided by the independent registered public accounting firm in connection with statutory and regulatory filings or engagements for those fiscal years. This category also includes statutory audits; consultation and advice on new accounting pronouncements, and technical advice on various accounting matters related to the consolidated financial statements or statutory financial statements that we are required to file; comfort letters; and consents issued in connection with SEC filings or private placement documents.
Audit-Related Services.
This category consists of assurance and related services provided by KPMG that are reasonably related to the performance of the audit or review of our financial statements, and are not included in the fees reported in the table above under “Audit Services”. The services for the fees disclosed under this category primarily include services related to local statutes or regulations.
Tax Services.
This category consists of tax services provided with respect to tax consulting, tax compliance, tax audit assistance, tax planning, expatriate tax services, and transfer pricing. of which there were none in 2017 and 2016.
All Other Services.
This category consists of services provided by KPMG that are not included in the category descriptions defined above under “Audit Services”, “Audit-Related Services”, or “Tax Services”.
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 2017:
| Period begin | Period end | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||
| January 1 | February 5 | January | 238,551 | 98.40 | 238,551 | 2,935,384 | ||||||||||||||
| February 6 | March 5 | February | 16,463 | 99.46 | 16,463 | 2,918,921 | ||||||||||||||
| March 6 | April 2 | March | 5,403 | 103.83 | 5,403 | 2,913,518 | ||||||||||||||
| April 3 | May 7 | April | 79,146 | 103.76 | 79,146 | 2,834,372 | ||||||||||||||
| May 8 | June 4 | May | 11,345 | 106.78 | 11,345 | 2,823,027 | ||||||||||||||
| June 5 | July 2 | June | 5,861 | 108.40 | 5,861 | 2,817,166 | ||||||||||||||
| July 3 | August 6 | July | 18,286 | 109.73 | 18,286 | 2,798,880 | ||||||||||||||
| August 7 | September 3 | August | 86 | 112.42 | 86 | 2,798,794 | ||||||||||||||
| September 4 | October 1 | September | 1,125 | 112.44 | 1,125 | 2,797,669 | ||||||||||||||
| October 2 | November 5 | October | 619,877 | 116.51 | 619,877 | 2,177,792 | ||||||||||||||
| November 6 | December 3 | November | 1,435,151 | 115.27 | 1,435,151 | 742,641 | ||||||||||||||
| December 4 | December 31 | December | 91,295 | 114.33 | 91,295 | 651,346 | ||||||||||||||
| Total 2017 | 2,522,589 | 113.36 | 2,522,589 |
From time to time, last in June 2017, 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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