NXP Semiconductors (NXPI) 10-Q 28 Jul 20 2020 Q2 Quarterly report Financial data

Cover Document

Cover Document - shares	6 Months Ended
	Jun. 28, 2020	Jul. 24, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 28, 2020
Document Transition Report	false
Entity File Number	001-34841
Entity Registrant Name	NXP Semiconductors N.V.
Entity Incorporation, State or Country Code	P7
Entity Tax Identification Number	98-1144352
Entity Address, Address Line One	60 High Tech Campus
Entity Address, City or Town	Eindhoven
Entity Address, Country	NL
Entity Address, Postal Zip Code	5656 AG
Country Region	+31
City Area Code	40
Local Phone Number	2729999
Title of 12(b) Security	Common shares, EUR 0.20 par value
Trading Symbol	NXPI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		279,224,213
Amendment Flag	false
Entity Central Index Key	0001413447
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Income Statement [Abstract]
Revenue	$ 1,817	$ 2,217	$ 3,838	$ 4,311
Cost of revenue	(957)	(1,066)	(1,981)	(2,088)
Gross profit	860	1,151	1,857	2,223
Research and development	(402)	(408)	(827)	(823)
Selling, general and administrative	(222)	(230)	(455)	(478)
Amortization of acquisition-related intangible assets	(380)	(355)	(761)	(712)
Total operating expenses	(1,004)	(993)	(2,043)	(2,013)
Other income (expense)	(1)	(1)	109	1
Operating income (loss)	(145)	157	(77)	211
Financial income (expense):
(Gain) loss on extinguishment of debt	0	(10)	0	(10)
Other financial income (expense)	(96)	(79)	(174)	(162)
Income (loss) before income taxes	(241)	68	(251)	39
Benefit (provision) for income taxes	33	(21)	31	(12)
Results relating to equity-accounted investees	(1)	(1)	(2)	3
Net income (loss)	(209)	46	(222)	30
Less: Net income (loss) attributable to non-controlling interests	5	5	13	10
Net income (loss) attributable to stockholders	$ (214)	$ 41	$ (235)	$ 20
Earnings per share data:
Basic net income (loss) (in dollars per share)	$ (0.77)	$ 0.15	$ (0.84)	$ 0.07
Diluted net income (loss) (in dollars per share)	$ (0.77)	$ 0.14	$ (0.84)	$ 0.07
Weighted average number of shares of common stock outstanding during the period (in thousands):
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares)	279,142	281,241	279,533	284,217
Weighted Average Number of Shares Outstanding, Diluted	279,142	285,088	279,533	286,858

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (209)	$ 46	$ (222)	$ 30
Other comprehensive income (loss), net of tax:
Change in fair value cash flow hedges		5		5
Change in fair value cash flow hedges	11		1
Change in foreign currency translation adjustment	26	6	(23)	(6)
Change in net actuarial gain (loss)	(1)	(2)	(3)	(4)
Total other comprehensive income (loss)	36	9	(25)	(5)
Total comprehensive income (loss)	(173)	55	(247)	25
Less: Comprehensive income (loss) attributable to non-controlling interests	5	5	13	10
Total comprehensive income (loss) attributable to stockholders	$ (178)	$ 50	$ (260)	$ 15

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 3,266	$ 1,045
Accounts receivable, net	481	667
Assets held for sale	0	50
Inventories, net	1,228	1,192
Other current assets	240	313
Total current assets	5,215	3,267
Non-current assets:
Other non-current assets	760	732
Property, plant and equipment, net of accumulated depreciation of $3,977 and $3,742	2,312	2,448
Identified intangible assets, net of accumulated amortization of $6,457 and $5,764	2,824	3,620
Goodwill	9,946	9,949
Total non-current assets	15,842	16,749
Total assets	21,057	20,016
Current liabilities:
Accounts payable	729	944
Restructuring liabilities-current	25	32
Other current liabilities	889	815
Short-term debt	1,349	0
Total current liabilities	2,992	1,791
Non-current liabilities:
Long-term debt	8,004	7,365
Deferred tax liabilities	136	282
Other non-current liabilities	870	923
Total non-current liabilities	9,010	8,570
Total liabilities	12,002	10,361
Equity:
Non-controlling interests	193	214
Stockholders’ equity:
Common stock, par value €0.20 per share:	64	64
Capital in excess of par value	15,228	15,184
Treasury shares, at cost : 36,518,520 shares (2019: 34,082,242 shares)	(3,325)	(3,037)
Accumulated other comprehensive income (loss)	50	75
Accumulated deficit	(3,155)	(2,845)
Total stockholders’ equity	8,862	9,441
Total equity	9,055	9,655
Total liabilities and equity	21,057	20,016
Accumulated depreciation	$ 3,977	$ 3,742

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 3,977	$ 3,742
Accumulated amortization	$ 6,457	$ 5,764
Common stock, par value (in euros per share)	$ 0.20	$ 0.20
Treasury shares (in shares)	36,306,688	34,082,242

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ (222)	$ 30
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	1,083	1,008
Share-based compensation	212	173
Amortization of discount (premium) on debt, net	(1)	22
Amortization of debt issuance costs	4	6
Net (gain) loss on sale of assets	(110)	1
(Gain) loss on extinguishment of debt	0	10
Results relating to equity-accounted investees	2	(3)
Deferred tax expense (benefit)	(156)	(93)
Changes in operating assets and liabilities:
(Increase) decrease in receivables and other current assets	251	(11)
(Increase) decrease in inventories	(35)	122
Increase (decrease) in accounts payable and other liabilities	(96)	(468)
Decrease (increase) in other non-current assets	(7)	6
Exchange differences	1	7
Other items	0	3
Net cash provided by (used for) operating activities	926	813
Cash flows from investing activities:
Purchase of identified intangible assets	(73)	(51)
Capital expenditures on property, plant and equipment	(218)	(250)
Proceeds from disposals of property, plant and equipment	1	0
Purchase of interests in businesses, net of cash acquired	(21)	0
Proceeds from sale of interests in businesses	161	37
Purchase of investments	0	(17)
Proceeds from sale of investments	0	1
Net cash provided by (used for) investing activities	(150)	(280)
Cash flows from financing activities:
Repurchase of long-term debt	0	553
Proceeds from the issuance of long-term debt	2,000	1,750
Cash paid for debt issuance costs	15	23
Dividends paid to non-controlling interests	0	0
Dividends paid to common stockholders	(210)	(144)
Proceeds from issuance of common stock through stock plans	37	37
Purchase of treasury shares and restricted stock unit withholdings	(358)	(1,360)
Net cash provided by (used for) financing activities	1,454	(293)
Effect of changes in exchange rates on cash positions	(9)	1
Increase (decrease) in cash and cash equivalents	2,221	241
Cash and cash equivalents at beginning of period	1,045	2,789
Cash and cash equivalents at end of period	3,266	3,030
Net cash paid during the period for:
Interest	157	103
Income taxes	64	275
Net gain (loss) on sale of assets:
Cash proceeds from the sale of assets	161	37
Book value of these assets	(51)	(34)
Non-cash investing activities:
Non-cash capital expenditures	$ 54	$ 178

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common stock	Capital in excess of par value	Treasury shares at cost	Accumulated other comprehensive income (loss)	Accumulated deficit	Total stock- holders’ equity	Non- controlling interests
Balance (in shares) at Dec. 31, 2018	292,790
Balance at Dec. 31, 2018	$ 10,690	$ 67	$ 15,460	$ (3,238)	$ 123	$ (1,907)	$ 10,505	$ 185
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(16)					(21)	(21)	5
Other comprehensive income	(14)				(14)		(14)
Share-based compensation plans	$ 87		87				87
Shares issued pursuant to stock awards (in shares)	867
Shares issued pursuant to stock awards	$ 32			83		(51)	32
Treasury shares and restricted stock unit withholdings (in shares)	(8,482)
Treasury shares and restricted stock unit withholdings	$ (715)			(715)			(715)
Shareholder tax on repurchased shares	(62)					(62)	(62)
Dividends common stock	$ (71)					(71)	(71)
Balance (in shares) at Mar. 31, 2019	285,175
Balance at Mar. 31, 2019	$ 9,931	67	15,547	(3,870)	109	(2,112)	9,741	190
Balance (in shares) at Dec. 31, 2018	292,790
Balance at Dec. 31, 2018	$ 10,690	67	15,460	(3,238)	123	(1,907)	10,505	185
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	30
Other comprehensive income	$ (5)
Balance (in shares) at Jun. 30, 2019	278,753
Balance at Jun. 30, 2019	$ 9,520	67	15,635	(4,497)	118	(1,998)	9,325	195
Balance (in shares) at Mar. 31, 2019	285,175
Balance at Mar. 31, 2019	$ 9,931	67	15,547	(3,870)	109	(2,112)	9,741	190
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	46					41	41	5
Other comprehensive income	9				9		9
Share-based compensation plans	$ 88		88				88
Shares issued pursuant to stock awards (in shares)	194
Shares issued pursuant to stock awards	$ 6			18		(12)	6
Treasury shares and restricted stock unit withholdings (in shares)	(6,616)
Treasury shares and restricted stock unit withholdings	$ (645)			(645)			(645)
Shareholder tax on repurchased shares	155					155	155
Dividends common stock	$ (70)					(70)	(70)
Balance (in shares) at Jun. 30, 2019	278,753
Balance at Jun. 30, 2019	$ 9,520	67	15,635	(4,497)	118	(1,998)	9,325	195
Balance (in shares) at Dec. 31, 2019	281,437
Balance at Dec. 31, 2019	$ 9,655	64	15,184	(3,037)	75	(2,845)	9,441	214
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(13)					(21)	(21)	8
Other comprehensive income	(61)				(61)		(61)
Share-based compensation plans	$ 108		108				108
Shares issued pursuant to stock awards (in shares)	497
Shares issued pursuant to stock awards	$ 29			47		(18)	29
Treasury shares and restricted stock unit withholdings (in shares)	(2,933)
Treasury shares and restricted stock unit withholdings	$ (355)			(355)			(355)
Expiration of stock purchase warrants			(56)			56
Dividends common stock	$ (105)					(105)	(105)
Balance (in shares) at Mar. 29, 2020	279,001
Balance at Mar. 29, 2020	$ 9,258	64	15,236	(3,345)	14	(2,933)	9,036	222
Balance (in shares) at Dec. 31, 2019	281,437
Balance at Dec. 31, 2019	$ 9,655	64	15,184	(3,037)	75	(2,845)	9,441	214
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(222)
Other comprehensive income	$ (25)
Balance (in shares) at Jun. 28, 2020	279,213
Balance at Jun. 28, 2020	$ 9,055	64	15,228	(3,325)	50	(3,155)	8,862	193
Balance (in shares) at Mar. 29, 2020	279,001
Balance at Mar. 29, 2020	$ 9,258	64	15,236	(3,345)	14	(2,933)	9,036	222
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(209)					(214)	(214)	5
Other comprehensive income	36				36		36
Share-based compensation plans	$ 104		104				104
Shares issued pursuant to stock awards (in shares)	252
Shares issued pursuant to stock awards	$ 8			23		(15)	8
Treasury shares and restricted stock unit withholdings (in shares)	(40)
Treasury shares and restricted stock unit withholdings	$ (3)			(3)			(3)
Expiration of stock purchase warrants			(112)			112
Dividends common stock	$ (105)					(105)	(105)
Balance (in shares) at Jun. 28, 2020	279,213
Balance at Jun. 28, 2020	$ 9,055	$ 64	$ 15,228	$ (3,325)	$ 50	$ (3,155)	$ 8,862	193
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	$ (34)							$ (34)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jun. 28, 2020	Mar. 29, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 28, 2020	Jun. 30, 2019
Statement of Stockholders' Equity [Abstract]
Dividends common stock (USD per share)	$ 0.375	$ 0.375	$ 0.25	$ 0.25	$ 0.750	$ 0.50

Basis of Presentation and Overv

Basis of Presentation and Overview	3 Months Ended
	Mar. 29, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Overview	Basis of Presentation and Overview We prepared our interim condensed consolidated financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10‑K for the year ended December 31, 2019. We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019. On May 27, 2020, NXP announced that at its Annual General Meeting of Shareholders, shareholders approved the appointment of Kurt Sievers as President and Chief Executive Officer, effective immediately. Mr. Sievers succeeded Richard “Rick” Clemmer, who previously led NXP for 11 years. Mr. Clemmer will remain a strategic advisor to NXP.

Significant Accounting Policies

Significant Accounting Policies and Recent Accounting Pronouncements	6 Months Ended
	Jun. 28, 2020
Accounting Policies [Abstract]
Significant Accounting Policies and Recent Accounting Pronouncements	Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies Except for the changes below, no material changes have been made to the Company's significant accounting policies disclosed in Note 2 Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2019. The accounting policy information below is to aid in the understanding of the financial information disclosed. New accounting standards not yet adopted In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 removes disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. ASU 2018-14 should be applied on a retrospective basis to all periods presented and is effective for annual reporting periods ending after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on our financial statement disclosures. Accounting standards recently adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments are estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new accounting guidance generally requires the modified retrospective transition method, with the cumulative effect of applying the new accounting guidance recognized as an adjustment to opening retained earnings in the year of adoption, except for certain financial assets where the prospective transition method is required, such as available-for-sale debt securities for which an other-than-temporary impairment has been recorded. The ASUs became effective for us on January 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, the one step quantitative impairment test calculates goodwill impairment as the excess of the carrying value of a reporting unit over its fair value, up to the carrying value of the goodwill. The ASU should be applied on a prospective basis. ASU 2017-04 became effective for us on January 1, 2020. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 removes certain disclosure requirements, including the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. ASU 2018-13 also adds disclosure requirements, including changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments on changes in unrealized gains and losses, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ASU 2018-13 became effective for us on January 1, 2020. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Therefore, a customer in a hosting arrangement that is a service contract determines which project stage an implementation activity relates to. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. ASU 2018-15 also requires the customer to expense the capitalized implementation costs over the term of the hosting arrangement, and to apply the existing impairment guidance in Subtopic 350-40 to the capitalized implementation costs as if the costs were long-lived assets. ASU 2018-15 can be applied either retrospectively or prospectively and is effective for annual reporting periods beginning after December 15, 2019, and interim periods therein, with early adoption permitted. ASU 2018-15 became effective for us on January 1, 2020. We have elected to apply the standard prospectively. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements.

Acquisitions and Divestments

Acquisitions and Divestments	6 Months Ended
	Jun. 28, 2020
Business Combinations [Abstract]
Acquisitions and Divestments	Acquisitions and Divestments 2020 There were no material acquisitions during the first six months of 2020. On February 3, 2020, we completed the sale of the Company's Voice and Audio Solutions (VAS) assets, pursuant to the definitive agreement dated August 16, 2019 and which was previously classified as held for sale, with Shenzhen Goodix Technology Co., Ltd. ("Goodix") from China, for a net cash amount of $161 million inclusive of final working capital adjustments. This resulted in a gain of $110 million recorded in Other income (expense) on the Consolidated Statements of Operations. 2019 On December 6, 2019, we completed the acquisition of Marvell’s Wireless WiFi Connectivity Business Unit, Bluetooth technology portfolio and related assets for total consideration of $1.7 billion, net of closing adjustments. The acquisition complements NXP’s processing, security and connectivity offerings in the Industrial & IoT, as well as in the Automotive and Communication Infrastructure markets. The fair values of the assets acquired and liabilities assumed in the acquisition, by major class, were recognized as follows: Tangible fixed assets 2 Inventory 50 Identified intangible assets 514 Goodwill 1,138 Deferred tax assets 1 Net assets acquired 1,705 Our valuation procedures related to the acquired assets and assumed liabilities was completed during the second quarter of 2020 . Goodwill arising from the acquisition is attributed to the anticipated growth from new product sales, sales to new customers, the assembled workforce and synergies expected from the combination. Substantially all of the goodwill recognized is expected to be deductible for income tax purposes. The identified intangible assets assumed were recognized as follows: Fair Value Weighted Average Estimated Useful Life (in Years) Customer relationships (included in customer-related) 20 6 Developed technology (included in technology-based) 324 4.4 In-process research and development (1) 170 N/A Total identified intangible assets 514 1) Acquired in-process research and development (“IPR&D”) is an intangible asset classified as an indefinite lived asset until the completion or abandonment of the associated research and development effort. IPR&D will be amortized over an estimated useful life to be determined at the date the associated research and development effort is completed, or expensed immediately when, and if, the project is abandoned. Acquired IPR&D is not amortized during the period that it is considered indefinite lived, but rather is subject to annual testing for impairment or when there are indicators for impairment. Variations of the income approach were applied to estimate the fair values of the intangible assets acquired. Developed technology and IPR&D were valued using the multi-period excess earnings method which reflects the present values of the projected cash flows that are expected to be generated by the existing technology and IPR&D less charges representing the contribution of other assets to those cash flows. Customer relationships were valued using the distributor method which uses market-based data to support the selection of profitability related to the customer relationship function. Acquisition-related transaction costs ($5 million) such as legal, accounting and other related expenses were recorded as a component of selling, general and administrative expense in our consolidated statement of operations. On March 27, 2019, we sold our remaining equity interest in WeEn, receiving net cash proceeds of $37 million.

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Jun. 28, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Financial Information	Supplemental Financial Information Statement of Operations Information: Disaggregation of revenue The following table presents revenue disaggregated by sales channel: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Distributors 1,059 1,083 2,043 2,045 Original Equipment Manufacturers and Electronic Manufacturing Services 712 1,112 1,712 2,226 Other 46 22 83 40 Total 1,817 2,217 3,838 4,311 Depreciation, amortization and impairment For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Depreciation of property, plant and equipment 136 128 269 252 Amortization of internal use software 1 2 3 4 Amortization of other identified intangible assets 406 376 811 752 Total - Depreciation, amortization and impairment 543 506 1,083 1,008 Other income (expense) Income derived from manufacturing service arrangements (“MSA”) and transitional service arrangements (“TSA”) that are put in place when we divest a business or activity, is included in other income (expense). These arrangements are short-term in nature and are expected to decrease as the divested business or activity becomes more established. The following table presents the split of other income (expense): For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Result from MSA and TSA arrangements (1) — (1) 2 Other, net — (1) 110 (1) Total - Other income (expense) (1) (1) 109 1 Financial income and expense For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Interest income 4 12 8 25 Interest expense (94) (89) (176) (176) Total interest expense, net (90) (77) (168) (151) Extinguishment of debt — (10) — (10) Foreign exchange rate results (5) (1) (1) (7) Miscellaneous financing costs/income and other, net (1) (1) (5) (4) Total other financial income/ (expense) (6) (12) (6) (21) Total - Financial income and expenses (96) (89) (174) (172) Earnings per share The computation of earnings per share (EPS) is presented in the following table: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Net income (loss) (209) 46 (222) 30 Less: net income (loss) attributable to non-controlling interests 5 5 13 10 Net income (loss) attributable to stockholders (214) 41 (235) 20 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,142 281,241 279,533 284,217 Plus incremental shares from assumed conversion of: Options 1) — 767 — 771 Restricted Share Units, Performance Share Units and Equity Rights 2) — 3,080 — 1,870 Warrants 3) — — — — Dilutive potential common shares — 3,847 — 2,641 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,142 285,088 279,533 286,858 EPS attributable to stockholders in $: Basic net income (loss) (0.77) 0.15 (0.84) 0.07 Diluted net income (loss) (0.77) 0.14 (0.84) 0.07 1) Stock options to purchase up to 0.9 million shares of NXP’s common stock that were outstanding in Q2 2020 (Q2 2019: 0.1 million shares) and stock options to purchase up to 0.9 million shares of NXP's common stock that were outstanding YTD 2020 (YTD 2019: 0.1 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. 2) Unvested RSUs, PSUs and equity rights of 7.7 million shares that were outstanding in Q2 2020 (Q2 2019: 0.3 million shares) and unvested RSUs, PSUs and equity rights of 7.7 million shares that were outstanding YTD 2020 (YTD 2019: 0.3 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSUs, PSUs and equity rights or the performance goal has not been met yet. 3) Warrants to purchase up to 11.3 million shares of NXP's common stock at a price of $131.84 per share were outstanding in Q2 2019, no warrants were outstanding at the end of Q2 2020. At the end of Q2 2019, the warrants were not included in the computation of diluted EPS because the warrants exercise price was greater than the average fair market value of the common shares. Balance Sheet Information Cash and cash equivalents At June 28, 2020 and December 31, 2019, our cash balance was $3,266 million and $1,045 million, respectively, of which $250 million and $188 million was held by SSMC, our consolidated joint venture company with TSMC. Under the terms of our joint venture agreement with TSMC, a portion of this cash can be distributed by way of a dividend to us, but 38.8% of the dividend will be paid to our joint venture partner. During the first six months of 2020, $90 million has been declared by SSMC, distributed subsequent to the end of the second quarter of 2020, with 38.8% being paid to our joint venture partner. In 2019, no dividend was declared by SSMC. Inventories The portion of finished goods stored at customer locations under consignment amounted to $36 million as of June 28, 2020 (December 31, 2019: $41 million). Inventories are summarized as follows: June 28, 2020 December 31, 2019 Raw materials 71 52 Work in process 933 894 Finished goods 224 246 1,228 1,192 The amounts recorded above are net of allowance for obsolescence of $129 million as of June 28, 2020 (December 31, 2019: $114 million). Accumulated other comprehensive income (loss) Total comprehensive income (loss) represents net income (loss) plus the results of certain equity changes not reflected in the condensed consolidated statements of operations. The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below: Currency Change in fair Net actuarial Accumulated As of December 31, 2019 203 2 (130) 75 Other comprehensive income (loss) before (23) (7) 6 (24) Amounts reclassified out of accumulated other — 8 — 8 Tax effects — — (9) (9) Other comprehensive income (loss) (23) 1 (3) (25) As of June 28, 2020 180 3 (133) 50 Cash dividends The following dividends were declared during the first two quarters of 2020 and 2019 under NXP’s quarterly dividend program: Fiscal year 2020 Fiscal year 2019 Dividend per share Amount Dividend per share Amount First quarter 0.375 105 0.25 71 Second quarter 0.375 105 0.25 70 0.750 210 0.50 141 The dividend declared in the second quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of June 28, 2020 and subsequently paid on July 6, 2020.

Restructuring

Restructuring	6 Months Ended
	Jun. 28, 2020
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring At each reporting date, we evaluate our restructuring liabilities, which consist primarily of termination benefits, to ensure that our accruals are still appropriate. The following table presents the changes in restructuring liabilities in 2020: As of January 1, 2020 Additions Utilized Released Other As of June 28, 2020 Restructuring liabilities 32 17 (24) — — 25 The restructuring charges consist of personnel lay-off costs of $19 million for the six month period ended June 28, 2020 (June 30, 2019 : $30 million). These restructuring charges recorded in operating income, for the periods indicated, are included in the following line items in the statement of operations: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Cost of revenue — — 3 4 Research and development 6 5 10 16 Selling, general and administrative 2 — 6 10 Net restructuring charges 8 5 19 30

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Benefit/provision for income taxes: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Tax expense (benefit) (33) 21 (31) 12 Effective tax rate 13.7 % 30.9 % 12.4 % 30.8 % Our effective tax rate reflects the impact of tax incentives, non-deductible expenses, change in valuation allowance, a portion of our earnings being taxed in foreign jurisdictions at rates different than the Netherlands statutory tax rate and the mix of income and losses in various jurisdictions. Our effective tax rate for the first six months of 2020 was a benefit of 12.4% on a pre-tax loss compared with an expense of 30.8% on a pre-tax income for the first six months of 2019. The movements in our effective tax rate, apart from being in an expense position in 2019 and a benefit in 2020, relate mainly to the net effect of the decrease in the valuation allowance when compared to the same period in 2019 as there were no Netherlands related interest expense that was impacted by the interest limitation rules ($13 million) offset by the increase in non deductible goodwill ($10 million), both linked to the divestiture of the VAS business, as well as a decrease of tax incentives ($14 million) mainly driven by a lower qualifying income in 2020 and our related adjustments for changes in estimates of prior positions ($5 million) expense for the first six months of 2020 compared to a $9 million benefit for the first six months of 2019). The Company benefits from income tax incentives in certain jurisdictions which provide that we pay reduced income taxes in those jurisdictions for a fixed period of time that varies depending on the jurisdiction. The predominant income tax holiday is expected to expire at the end of 2026. The impact of this tax holiday decreased for the second quarter of 2020 by $2 million and decreased by $2 million for the second quarter 2019 (YTD 2020: a decrease of $5 million and YTD 2019: a decrease of $4 million). The benefit of this tax holiday on net income per share (diluted) was $0.01 for the second

Identified Intangible Assets

Identified Intangible Assets	6 Months Ended
	Jun. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Identified Intangible Assets	Identified Intangible Assets Identified intangible assets as of June 28, 2020 and December 31, 2019, respectively, were composed of the following: June 28, 2020 December 31, 2019 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 252 — 272 — Marketing-related 82 (75) 81 (67) Customer-related 966 (365) 968 (340) Technology-based 7,981 (6,017) 8,063 (5,357) Identified intangible assets 9,281 (6,457) 9,384 (5,764) (1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort. The estimated amortization expense for these identified intangible assets for each of the five succeeding years is: 2020 (remaining) 589 2021 670 2022 570 2023 341 2024 175 Thereafter 479 All intangible assets, excluding IPR&D and goodwill, are subject to amortization and have no assumed residual value. The expected weighted average remaining life of identified intangibles is 3 years as of June 28, 2020 (December 31, 2019: 3 years).

Debt

Debt	6 Months Ended
	Jun. 28, 2020
Debt Disclosure [Abstract]
Debt	Debt On May 1, 2020, NXP B.V., together with NXP Funding LLC and NXP USA, Inc., issued $500 million of 2.7% senior unsecured notes due May 1, 2025, $500 million of 3.15% senior unsecured notes due May 1, 2027 and $1 billion of 3.4% senior unsecured notes due May 1, 2030. The following table summarizes the outstanding debt as of June 28, 2020 and December 31, 2019: June 28, 2020 December 31, 2019 Maturities Amount Effective Amount Effective Fixed-rate 4.125% senior unsecured notes Jun, 2021 1,350 4.125 1,350 4.125 Fixed-rate 4.625% senior unsecured notes Jun, 2022 400 4.625 400 4.625 Fixed-rate 3.875% senior unsecured notes Sep, 2022 1,000 3.875 1,000 3.875 Fixed-rate 4.625% senior unsecured notes Jun, 2023 900 4.625 900 4.625 Fixed-rate 4.875% senior unsecured notes Mar, 2024 1,000 4.875 1,000 4.875 Fixed-rate 2.7% senior unsecured notes May, 2025 500 2.700 — — Fixed-rate 5.35% senior unsecured notes Mar, 2026 500 5.350 500 5.350 Fixed-rate 3.875% senior unsecured notes Jun, 2026 750 3.875 750 3.875 Fixed-rate 3.15% senior unsecured notes May, 2027 500 3.150 — — Fixed-rate 5.55% senior unsecured notes Dec, 2028 500 5.550 500 5.550 Fixed-rate 4.3% senior unsecured notes Jun, 2029 1,000 4.300 1,000 4.300 Fixed-rate 3.4% senior unsecured notes May, 2030 1,000 3.400 — — Floating-rate revolving credit facility (RCF) Jun, 2024 — — — — Total principal 9,400 7,400 Unamortized discounts, premiums and debt (47) (35) Total debt, including unamortized discounts, 9,353 7,365 Less: current portion of long-term debt 1,349 — Long-term debt 8,004 7,365

Leases

Leases	6 Months Ended
	Jun. 28, 2020
Leases [Abstract]
Leases	Leases Operating and finance lease assets relate to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery and installations and other equipment (vehicles and certain office equipment). These leases, except for land leases, have remaining lease terms of 1 to 30 years (land leases 48 to 90 years), some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. As of June 28, 2020, assets recorded under finance leases were $82 million and accumulated depreciation associated with finance leases was $11 million. Finance lease liabilities amount to $25 million as of June 28, 2020 ($25 million as of December 31, 2019). The components of operating lease expense were as follows: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Operating lease cost 16 13 32 26 Other information related to operating leases was as follows: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1) 14 10 19 198 1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842. Weighted average remaining lease term: Operating leases 6 years 5 years Weighted average discount rate: Operating leases 3 % 3 % Future minimum lease payments as of June 28, 2020 were as follows: As of June 28, 2020 Operating leases 2020 (remaining) 32 2021 54 2022 41 2023 33 2024 23 Thereafter 59 Total future minimum lease payments 242 Less: imputed interest (20) Total 222 Lease liabilities related to leases are split between current and non-current: Operating leases As of June 28, 2020 December 31, 2019 Other current liabilities 59 62 Other non-current liabilities 163 176 Total 222 238 Operating lease right-of-use assets are $216 million as of June 28, 2020 (December 31, 2019: $226 million) and are included in other non-current assets in the condensed consolidated balance sheet.

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 28, 2020
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions The Company's related parties are the members of the board of directors of NXP, the executive officers of NXP and equity-accounted investees. As of the divestment of the SP business on February 7, 2017, the newly formed Nexperia has become a related party. We have a number of strategic alliances and joint ventures. We have relationships with certain of our alliance partners in the ordinary course of business whereby we enter into various sale and purchase transactions, generally on terms comparable to transactions with third parties. However, in certain instances upon divestment of former businesses where we enter into supply arrangements with the former owned business, sales are conducted at cost. The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Revenue and other income 18 21 36 44 Purchase of goods and services 14 16 26 35 The following table presents the amounts related to receivable and payable balances with these related parties: June 28, 2020 December 31, 2019 Receivables 7 21 Payables 10 9 As part of the divestment of the SP business, we entered into a lease commitment and related services to Nexperia, which is $59 million as of June 28, 2020, and committed $50 million to an investment fund affiliated with Nexperia’s owners. The lease commitments are reflected in our recorded lease liabilities in other current and non-current liabilities.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 28, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table summarizes the estimated fair value of our financial instruments which are measured at fair value on a recurring basis: Estimated fair value Fair value June 28, 2020 December 31, 2019 Assets: Money market funds 1 2,007 6 Marketable equity 1 12 1 Derivative instruments-assets 2 6 10 Liabilities: Derivative instruments-liabilities 2 (6) (1) The following methods and assumptions were used to estimate the fair value of financial instruments: Assets and liabilities measured at fair value on a recurring basis Investments in money market funds (as part of our cash and cash equivalents) and marketable equity securities have fair value measurements which are all based on quoted prices in active markets for identical assets or liabilities. For derivatives the fair value is based upon significant other observable inputs depending on the nature of the derivative. Assets and liabilities recorded at fair value on a non-recurring basis We measure and record our non-marketable equity securities, equity method investments and non-financial assets, such as intangible assets and property, plant and equipment, at fair value when an impairment charge is required. Assets and liabilities not recorded at fair value on a recurring basis Financial instruments not recorded at fair value on a recurring basis include non-marketable equity securities and equity method investments that have not been remeasured or impaired in the current period and debt. As of June 28, 2020, the estimated fair value of debt, including the current portion, was $10.3 billion ($7.9 billion as of December 31, 2019). The fair value is estimated on the basis of broker-dealer quotes, which are Level 2 inputs. Accrued interest is included under accrued liabilities and not within the carrying amount or estimated fair value of debt.

Litigation

Litigation	6 Months Ended
	Jun. 28, 2020
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation We are regularly involved as plaintiffs or defendants in claims and litigation relating to a variety of matters such as contractual disputes, personal injury claims, employee grievances and intellectual property litigation. In addition, our acquisitions, divestments and financial transactions sometimes result in, or are followed by, claims or litigation. Some of these claims may possibly be recovered from insurance reimbursements. Although the ultimate disposition of asserted claims cannot be predicted with certainty, it is our belief that the outcome of any such claims, either individually or on a combined basis, will not have a material adverse effect on our consolidated financial position. However, such outcomes may be material to our condensed consolidated statement of operations for a particular period. The Company records an accrual for any claim that arises whenever it considers that it is probable that it is exposed to a loss contingency and the amount of the loss contingency can be reasonably estimated. Legal fees are expensed when incurred. Based on the most current information available to it and based on its best estimate, the Company also reevaluates at least on a quarterly basis the claims that have arisen to determine whether any new accruals need to be made or whether any accruals made need to be adjusted. Based on the procedures described above, the Company has an aggregate amount of $18 million accrued for potential and current legal proceedings pending as of June 28, 2020, compared to $44 million accrued at December 31, 2019. The accruals are included in “Other current liabilities” and “Other non-current liabilities”. As of June 28, 2020, the Company’s balance related to insurance reimbursements was $8 million (December 31, 2019: $25 million) and is included in “Other current assets” and “Other non-current assets”. The Company also estimates the aggregate range of reasonably possible losses in excess of the amount accrued based on currently available information for those cases for which such estimate can be made. The estimated aggregate range requires significant judgment, given the varying stages of the proceedings (including the fact that many of them are currently in preliminary stages), the existence of multiple defendants (including the Company) in such claims whose share of liability has yet to be determined, the numerous yet-unresolved issues in many of the claims, and the attendant uncertainty of the various potential outcomes of such claims. Accordingly, the Company’s estimate will change from time to time, and actual losses may be more than the current estimate. As at June 28, 2020, the Company believes that for all litigation pending its potential aggregate exposure to loss in excess of the amount accrued (without reduction for any amounts that may possibly be recovered under insurance programs) could range between $0 and $23 million. Based upon our past experience with these matters, the Company would expect to receive insurance reimbursement on certain of these claims that would offset the potential maximum exposure of up to $15 million. In addition, the Company is currently assisting Motorola in the defense of personal injury lawsuits due to indemnity obligations included in the agreement that separated Freescale from Motorola in 2004. The multi-plaintiff Motorola lawsuits are pending in Cook County, Illinois. These claims allege a link between working in semiconductor manufacturing clean room facilities and birth defects in 18 individuals. The Motorola suits allege exposures between 1981 and 2005. Each claim seeks an unspecified amount of damages for the alleged injuries; however, legal counsel representing the plaintiffs has indicated they will seek substantial compensatory and punitive damages from Motorola for the entire inventory of claims which, if proven and recovered, the Company considers to be material. In the Motorola suits, a portion of any indemnity due to Motorola will be reimbursed to NXP if Motorola receives an indemnification payment from its insurance coverage. Motorola has potential insurance coverage for many of the years indicated above, but with differing types and levels of coverage, self-insurance retention amounts and deductibles. We are in discussions with Motorola and their insurers regarding the availability of applicable insurance coverage for each of the individual cases. Motorola and NXP have denied liability for these alleged injuries based on numerous defenses.

Significant Accounting Polici_2

Significant Accounting Policies and Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 28, 2020
Accounting Policies [Abstract]
Recently adopted accounting pronouncements	New accounting standards not yet adopted In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 removes disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. ASU 2018-14 should be applied on a retrospective basis to all periods presented and is effective for annual reporting periods ending after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on our financial statement disclosures. Accounting standards recently adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments are estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new accounting guidance generally requires the modified retrospective transition method, with the cumulative effect of applying the new accounting guidance recognized as an adjustment to opening retained earnings in the year of adoption, except for certain financial assets where the prospective transition method is required, such as available-for-sale debt securities for which an other-than-temporary impairment has been recorded. The ASUs became effective for us on January 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, the one step quantitative impairment test calculates goodwill impairment as the excess of the carrying value of a reporting unit over its fair value, up to the carrying value of the goodwill. The ASU should be applied on a prospective basis. ASU 2017-04 became effective for us on January 1, 2020. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 removes certain disclosure requirements, including the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. ASU 2018-13 also adds disclosure requirements, including changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments on changes in unrealized gains and losses, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ASU 2018-13 became effective for us on January 1, 2020. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Therefore, a customer in a hosting arrangement that is a service contract determines which project stage an implementation activity relates to. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. ASU 2018-15 also requires the customer to expense the capitalized implementation costs over the term of the hosting arrangement, and to apply the existing impairment guidance in Subtopic 350-40 to the capitalized implementation costs as if the costs were long-lived assets. ASU 2018-15 can be applied either retrospectively or prospectively and is effective for annual reporting periods beginning after December 15, 2019, and interim periods therein, with early adoption permitted. ASU 2018-15 became effective for us on January 1, 2020. We have elected to apply the standard prospectively. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements.

Acquisitions and Divestments (T

Acquisitions and Divestments (Tables)	6 Months Ended
	Jun. 28, 2020
Business Combinations [Abstract]
Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed	The fair values of the assets acquired and liabilities assumed in the acquisition, by major class, were recognized as follows: Tangible fixed assets 2 Inventory 50 Identified intangible assets 514 Goodwill 1,138 Deferred tax assets 1 Net assets acquired 1,705
Summary of Intangible Assets Recognized	The identified intangible assets assumed were recognized as follows: Fair Value Weighted Average Estimated Useful Life (in Years) Customer relationships (included in customer-related) 20 6 Developed technology (included in technology-based) 324 4.4 In-process research and development (1) 170 N/A Total identified intangible assets 514 1) Acquired in-process research and development (“IPR&D”) is an intangible asset classified as an indefinite lived asset until the completion or abandonment of the associated research and development effort. IPR&D will be amortized over an estimated useful life to be determined at the date the associated research and development effort is completed, or expensed immediately when, and if, the project is abandoned. Acquired IPR&D is not amortized during the period that it is considered indefinite lived, but rather is subject to annual testing for impairment or when there are indicators for impairment.

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	6 Months Ended
	Jun. 28, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Disaggregation of revenue	The following table presents revenue disaggregated by sales channel: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Distributors 1,059 1,083 2,043 2,045 Original Equipment Manufacturers and Electronic Manufacturing Services 712 1,112 1,712 2,226 Other 46 22 83 40 Total 1,817 2,217 3,838 4,311
Schedule of depreciation, amortization and impairment	For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Depreciation of property, plant and equipment 136 128 269 252 Amortization of internal use software 1 2 3 4 Amortization of other identified intangible assets 406 376 811 752 Total - Depreciation, amortization and impairment 543 506 1,083 1,008
Schedule of other income (expense)	The following table presents the split of other income (expense): For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Result from MSA and TSA arrangements (1) — (1) 2 Other, net — (1) 110 (1) Total - Other income (expense) (1) (1) 109 1
Schedule of financial income and expense	For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Interest income 4 12 8 25 Interest expense (94) (89) (176) (176) Total interest expense, net (90) (77) (168) (151) Extinguishment of debt — (10) — (10) Foreign exchange rate results (5) (1) (1) (7) Miscellaneous financing costs/income and other, net (1) (1) (5) (4) Total other financial income/ (expense) (6) (12) (6) (21) Total - Financial income and expenses (96) (89) (174) (172)
Schedule of earnings per share	The computation of earnings per share (EPS) is presented in the following table: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Net income (loss) (209) 46 (222) 30 Less: net income (loss) attributable to non-controlling interests 5 5 13 10 Net income (loss) attributable to stockholders (214) 41 (235) 20 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,142 281,241 279,533 284,217 Plus incremental shares from assumed conversion of: Options 1) — 767 — 771 Restricted Share Units, Performance Share Units and Equity Rights 2) — 3,080 — 1,870 Warrants 3) — — — — Dilutive potential common shares — 3,847 — 2,641 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,142 285,088 279,533 286,858 EPS attributable to stockholders in $: Basic net income (loss) (0.77) 0.15 (0.84) 0.07 Diluted net income (loss) (0.77) 0.14 (0.84) 0.07 1) Stock options to purchase up to 0.9 million shares of NXP’s common stock that were outstanding in Q2 2020 (Q2 2019: 0.1 million shares) and stock options to purchase up to 0.9 million shares of NXP's common stock that were outstanding YTD 2020 (YTD 2019: 0.1 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. 2) Unvested RSUs, PSUs and equity rights of 7.7 million shares that were outstanding in Q2 2020 (Q2 2019: 0.3 million shares) and unvested RSUs, PSUs and equity rights of 7.7 million shares that were outstanding YTD 2020 (YTD 2019: 0.3 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSUs, PSUs and equity rights or the performance goal has not been met yet. 3) Warrants to purchase up to 11.3 million shares of NXP's common stock at a price of $131.84 per share were outstanding in Q2 2019, no warrants were outstanding at the end of Q2 2020. At the end of Q2 2019, the warrants were not included in the computation of diluted EPS because the warrants exercise price was greater than the average fair market value of the common shares.
Schedule of inventories	Inventories are summarized as follows: June 28, 2020 December 31, 2019 Raw materials 71 52 Work in process 933 894 Finished goods 224 246 1,228 1,192
Schedule of accumulated other comprehensive income (loss)	The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below: Currency Change in fair Net actuarial Accumulated As of December 31, 2019 203 2 (130) 75 Other comprehensive income (loss) before (23) (7) 6 (24) Amounts reclassified out of accumulated other — 8 — 8 Tax effects — — (9) (9) Other comprehensive income (loss) (23) 1 (3) (25) As of June 28, 2020 180 3 (133) 50
Schedule of cash dividends	The following dividends were declared during the first two quarters of 2020 and 2019 under NXP’s quarterly dividend program: Fiscal year 2020 Fiscal year 2019 Dividend per share Amount Dividend per share Amount First quarter 0.375 105 0.25 71 Second quarter 0.375 105 0.25 70 0.750 210 0.50 141

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 28, 2020
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Charges	The following table presents the changes in restructuring liabilities in 2020: As of January 1, 2020 Additions Utilized Released Other As of June 28, 2020 Restructuring liabilities 32 17 (24) — — 25 These restructuring charges recorded in operating income, for the periods indicated, are included in the following line items in the statement of operations: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Cost of revenue — — 3 4 Research and development 6 5 10 16 Selling, general and administrative 2 — 6 10 Net restructuring charges 8 5 19 30

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 28, 2020
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefits) and Effective Tax Rates	Benefit/provision for income taxes: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Tax expense (benefit) (33) 21 (31) 12 Effective tax rate 13.7 % 30.9 % 12.4 % 30.8 %

Identified Intangible Assets (T

Identified Intangible Assets (Tables)	6 Months Ended
	Jun. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Identified Intangible Assets	Identified intangible assets as of June 28, 2020 and December 31, 2019, respectively, were composed of the following: June 28, 2020 December 31, 2019 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 252 — 272 — Marketing-related 82 (75) 81 (67) Customer-related 966 (365) 968 (340) Technology-based 7,981 (6,017) 8,063 (5,357) Identified intangible assets 9,281 (6,457) 9,384 (5,764) (1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort.
Schedule of Estimated Amortization Expense	The estimated amortization expense for these identified intangible assets for each of the five succeeding years is: 2020 (remaining) 589 2021 670 2022 570 2023 341 2024 175 Thereafter 479

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 28, 2020
Debt Disclosure [Abstract]
Schedule of Outstanding Debt	The following table summarizes the outstanding debt as of June 28, 2020 and December 31, 2019: June 28, 2020 December 31, 2019 Maturities Amount Effective Amount Effective Fixed-rate 4.125% senior unsecured notes Jun, 2021 1,350 4.125 1,350 4.125 Fixed-rate 4.625% senior unsecured notes Jun, 2022 400 4.625 400 4.625 Fixed-rate 3.875% senior unsecured notes Sep, 2022 1,000 3.875 1,000 3.875 Fixed-rate 4.625% senior unsecured notes Jun, 2023 900 4.625 900 4.625 Fixed-rate 4.875% senior unsecured notes Mar, 2024 1,000 4.875 1,000 4.875 Fixed-rate 2.7% senior unsecured notes May, 2025 500 2.700 — — Fixed-rate 5.35% senior unsecured notes Mar, 2026 500 5.350 500 5.350 Fixed-rate 3.875% senior unsecured notes Jun, 2026 750 3.875 750 3.875 Fixed-rate 3.15% senior unsecured notes May, 2027 500 3.150 — — Fixed-rate 5.55% senior unsecured notes Dec, 2028 500 5.550 500 5.550 Fixed-rate 4.3% senior unsecured notes Jun, 2029 1,000 4.300 1,000 4.300 Fixed-rate 3.4% senior unsecured notes May, 2030 1,000 3.400 — — Floating-rate revolving credit facility (RCF) Jun, 2024 — — — — Total principal 9,400 7,400 Unamortized discounts, premiums and debt (47) (35) Total debt, including unamortized discounts, 9,353 7,365 Less: current portion of long-term debt 1,349 — Long-term debt 8,004 7,365

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 28, 2020
Leases [Abstract]
Schedule of Lease Costs and Other Information	The components of operating lease expense were as follows: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Operating lease cost 16 13 32 26 Other information related to operating leases was as follows: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1) 14 10 19 198 1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842. Weighted average remaining lease term: Operating leases 6 years 5 years Weighted average discount rate: Operating leases 3 % 3 %
Schedule of Future Minimum Operating Lease Payments	Future minimum lease payments as of June 28, 2020 were as follows: As of June 28, 2020 Operating leases 2020 (remaining) 32 2021 54 2022 41 2023 33 2024 23 Thereafter 59 Total future minimum lease payments 242 Less: imputed interest (20) Total 222
Schedule of Lease Liabilities	Lease liabilities related to leases are split between current and non-current: Operating leases As of June 28, 2020 December 31, 2019 Other current liabilities 59 62 Other non-current liabilities 163 176 Total 222 238

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	6 Months Ended
	Jun. 28, 2020
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: For the three months ended For the six months ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Revenue and other income 18 21 36 44 Purchase of goods and services 14 16 26 35
Schedule Of Amounts Receivable From And Payable To Related Parties	The following table presents the amounts related to receivable and payable balances with these related parties: June 28, 2020 December 31, 2019 Receivables 7 21 Payables 10 9

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 28, 2020
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring and Nonrecurring Basis	The following table summarizes the estimated fair value of our financial instruments which are measured at fair value on a recurring basis: Estimated fair value Fair value June 28, 2020 December 31, 2019 Assets: Money market funds 1 2,007 6 Marketable equity 1 12 1 Derivative instruments-assets 2 6 10 Liabilities: Derivative instruments-liabilities 2 (6) (1)

Acquisitions and Divestments (D

Acquisitions and Divestments (Details) $ in Millions	Feb. 03, 2020USD ($)	Dec. 06, 2019USD ($)	Mar. 27, 2019USD ($)	Jun. 28, 2020USD ($)business	Jun. 30, 2019USD ($)
Business Acquisition [Line Items]
Number of businesses acquired | business				0
Proceeds from sale of interests in businesses				$ 161	$ 37
Marvell
Business Acquisition [Line Items]
Payment to acquire business unit		$ 1,700
Acquisition-related transaction costs		$ 5
Voice and Audio Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Price of assets acquired	$ 161
Gain on disposal	$ 110
WeEn | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Proceeds from sale of interests in businesses			$ 37

Acquisitions and Divestments -

Acquisitions and Divestments - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019	Dec. 06, 2019
Business Acquisition [Line Items]
Goodwill	$ 9,946	$ 9,949
Marvell
Business Acquisition [Line Items]
Tangible fixed assets			$ 2
Inventory			50
Identified intangible assets			514
Goodwill			1,138
Deferred tax assets			1
Net assets acquired			$ 1,705

Acquisitions and Divestments _2

Acquisitions and Divestments - Intangible Assets Acquired (Details) - USD ($) $ in Millions	Dec. 06, 2019	Jun. 28, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Weighted Average Estimated Useful Life (in Years)		3 years	3 years
Marvell
Business Acquisition [Line Items]
Identified intangible assets	$ 514
Marvell | In-process R&D (IPR&D)
Business Acquisition [Line Items]
Identified intangible assets	170
Marvell | Customer-related
Business Acquisition [Line Items]
Identified intangible assets	$ 20
Weighted Average Estimated Useful Life (in Years)	6 years
Marvell | Technology-based
Business Acquisition [Line Items]
Identified intangible assets	$ 324
Weighted Average Estimated Useful Life (in Years)	4 years 4 months 24 days

Supplemental Financial Inform_3

Supplemental Financial Information - Disaggregation of revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 1,817	$ 2,217	$ 3,838	$ 4,311
Distributors
Disaggregation of Revenue [Line Items]
Revenue	1,059	1,083	2,043	2,045
Original Equipment Manufacturers and Electronic Manufacturing Services
Disaggregation of Revenue [Line Items]
Revenue	712	1,112	1,712	2,226
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 46	$ 22	$ 83	$ 40

Supplemental Financial Inform_4

Supplemental Financial Information - Depreciation, amortization and impairment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Depreciation of property, plant and equipment	$ 136	$ 128	$ 269	$ 252
Total - Depreciation, amortization and impairment	543	506	1,083	1,008
Internal Use Software
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	1	2	3	4
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 406	$ 376	$ 811	$ 752

Supplemental Financial Inform_5

Supplemental Financial Information - Other income (expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Other Nonrecurring Income (Expense) [Line Items]
Other, net	$ 0	$ (1)	$ 110	$ (1)
Total - Other income (expense)	(1)	(1)	109	1
Manufacturing Service Arrangements and Transitional Service Arrangements
Other Nonrecurring Income (Expense) [Line Items]
Result from MSA and TSA arrangements	$ (1)	$ 0	$ (1)	$ 2

Supplemental Financial Inform_6

Supplemental Financial Information - Financial income and expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest income	$ 4	$ 12	$ 8	$ 25
Interest expense	(94)	(89)	(176)	(176)
Total interest expense, net	(90)	(77)	(168)	(151)
(Gain) loss on extinguishment of debt	0	(10)	0	(10)
Foreign exchange rate results	(5)	(1)	(1)	(7)
Miscellaneous financing costs/income and other, net	(1)	(1)	(5)	(4)
Total other financial income/ (expense)	(6)	(12)	(6)	(21)
Total - Financial income and expenses	$ (96)	$ (89)	$ (174)	$ (172)

Supplemental Financial Inform_7

Supplemental Financial Information - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 28, 2020	Mar. 29, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 28, 2020	Jun. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ (209)	$ (13)	$ 46	$ (16)	$ (222)	$ 30
Less: Net income (loss) attributable to non-controlling interests	5		5		13	10
Net income (loss) attributable to stockholders	$ (214)		$ 41		$ (235)	$ 20
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares)	279,142,000		281,241,000		279,533,000	284,217,000
Options (in shares)	0		767,000		0	771,000
Restricted Share Units, Performance Share Units and Equity Rights (in shares)	0		3,080,000		0	1,870,000
Warrants (in shares)	0		0		0	0
Dilutive potential common shares (in shares)	0		3,847,000		0	2,641,000
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares)	279,142,000		285,088,000		279,533,000	286,858,000
Basic net income (loss) (in dollars per share)	$ (0.77)		$ 0.15		$ (0.84)	$ 0.07
Diluted net income (loss) (in dollars per share)	$ (0.77)		$ 0.14		$ (0.84)	$ 0.07
Maximum | Employee Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	900,000		100,000		900,000	100,000
Maximum | Restricted Stock Units Performance Share Units And Equity Rights
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	7,700,000		300,000		7,700,000	300,000
Maximum | Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0		11,300,000
Common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of warrants or rights (in dollars per share)			$ 131.84			$ 131.84

Supplemental Financial Inform_8

Supplemental Financial Information - Cash and cash equivalents (Details) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 28, 2020	Mar. 29, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 28, 2020	Jun. 30, 2019	Dec. 31, 2019
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 3,266,000,000				$ 3,266,000,000		$ 1,045,000,000
Dividends	105,000,000	$ 105,000,000	$ 70,000,000	$ 71,000,000	210,000,000	$ 141,000,000
SSMC
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 250,000,000				250,000,000		188,000,000
Dividends					$ 90,000,000		$ 0
TSMC
Cash and Cash Equivalents [Line Items]
Ownership percentage by noncontrolling owners	38.80%				38.80%

Supplemental Financial Inform_9

Supplemental Financial Information - Inventories (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods under consignment	$ 36	$ 41
Raw materials	71	52
Work in process	933	894
Finished goods	224	246
Inventory, Net	1,228	1,192
Allowance for obsolescence	$ 129	$ 114

Supplemental Financial Infor_10

Supplemental Financial Information - Accumulated other comprehensive income (loss) (Details) $ in Millions	6 Months Ended
	Jun. 28, 2020USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	$ 9,655
Other comprehensive income (loss) before reclassifications	(24)
Amounts reclassified out of accumulated other comprehensive income (loss)	8
Other comprehensive income (loss)	(9)
Other comprehensive income (loss)	(25)
Balance	9,055
Currency  translation differences
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	203
Other comprehensive income (loss) before reclassifications	(23)
Amounts reclassified out of accumulated other comprehensive income (loss)	0
Other comprehensive income (loss)	0
Other comprehensive income (loss)	(23)
Balance	180
Change in fair  value cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	2
Other comprehensive income (loss) before reclassifications	(7)
Amounts reclassified out of accumulated other comprehensive income (loss)	8
Other comprehensive income (loss)	0
Other comprehensive income (loss)	1
Balance	3
Net actuarial gain/(losses)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(130)
Other comprehensive income (loss) before reclassifications	6
Amounts reclassified out of accumulated other comprehensive income (loss)	0
Other comprehensive income (loss)	(9)
Other comprehensive income (loss)	(3)
Balance	(133)
Accumulated other comprehensive income (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	75
Balance	$ 50

Supplemental Financial Infor_11

Supplemental Financial Information - Cash dividends (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 28, 2020	Mar. 29, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 28, 2020	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Dividends per share (USD per share)	$ 0.375	$ 0.375	$ 0.25	$ 0.25	$ 0.750	$ 0.50
Dividends	$ 105	$ 105	$ 70	$ 71	$ 210	$ 141

Restructuring - Change in Restr

Restructuring - Change in Restructuring Reserve (Details) $ in Millions	6 Months Ended
	Jun. 28, 2020USD ($)
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	$ 32
Additions	17
Utilized	(24)
Released	0
Other changes	0
Restructuring liability, ending balance	$ 25

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 8	$ 5	$ 19	$ 30
Personnel lay-off costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 19	$ 30

Restructuring - Schedule of Res

Restructuring - Schedule of Restructuring Charges Recorded in Operating Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	$ 8	$ 5	$ 19	$ 30
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	0	0	3	4
Research and development
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	6	5	10	16
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	$ 2	$ 0	$ 6	$ 10

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense (Benefits) and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Tax expense (benefit)	$ (33)	$ 21	$ (31)	$ 12
Effective tax rate	13.70%	30.90%	12.40%	30.80%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	13.70%	30.90%	12.40%	30.80%
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount			$ 13
Increase in non deductible goodwill			10
Effective Income Tax Rate Reconciliation, Tax Incentives			14
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount			5	$ 9
Foreign income tax change due to impact of tax holiday	$ 2	$ 2	$ 5	$ 4
Income tax holiday (in dollars per share)	$ 0.01	$ 0.01	$ 0.02	$ 0.02

Identified Intangible Assets -

Identified Intangible Assets - Summary of Identified Intangible Assets (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	$ 9,281	$ 9,384
Finite-lived intangible assets, accumulated amortization	(6,457)	(5,764)
Marketing-related
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	82	81
Finite-lived intangible assets, accumulated amortization	(75)	(67)
Customer-related
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	966	968
Finite-lived intangible assets, accumulated amortization	(365)	(340)
Technology-based
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	7,981	8,063
Finite-lived intangible assets, accumulated amortization	(6,017)	(5,357)
In-process R&D (IPR&D)
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, gross carrying amount	$ 252	$ 272

Identified Intangible Assets _2

Identified Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Other Intangible Assets $ in Millions	Jun. 28, 2020USD ($)
Finite-Lived Intangible Assets [Line Items]
2020 (remaining)	$ 589
2021	670
2022	570
2023	341
2024	175
Thereafter	$ 479

Identified Intangible Assets _3

Identified Intangible Assets - Narrative (Details)	6 Months Ended	12 Months Ended
	Jun. 28, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Expected weighted average remaining life of identified intangibles	3 years	3 years

Debt - Schedule of Outstanding

Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions	Jun. 28, 2020	May 01, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 9,400		$ 7,400
Unamortized discounts, premiums and debt issuance costs	(47)		(35)
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments	9,353		7,365
Less: current portion of long-term debt	1,349		0
Long-term debt	8,004		7,365
Unsecured Debt | Fixed-rate 4.125% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 1,350		$ 1,350
Effective rate	4.125%		4.125%
Unsecured Debt | Fixed-rate 4.625% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 400		$ 400
Effective rate	4.625%		4.625%
Unsecured Debt | Fixed-rate 3.875% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 1,000		$ 1,000
Effective rate	3.875%		3.875%
Unsecured Debt | Fixed-rate 4.625% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 900		$ 900
Effective rate	4.625%		4.625%
Unsecured Debt | Fixed-rate 4.875% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 1,000		$ 1,000
Effective rate	4.875%		4.875%
Unsecured Debt | Fixed-rate 2.7% senior unsecured notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		2.70%
Debt instrument, principal amount	$ 500	$ 500
Effective rate	2.70%
Unsecured Debt | Fixed-rate 5.35% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 500		$ 500
Effective rate	5.35%		5.35%
Unsecured Debt | Fixed-rate 3.875% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 750		$ 750
Effective rate	3.875%		3.875%
Unsecured Debt | Fixed-rate 3.15% senior unsecured notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		3.15%
Debt instrument, principal amount	$ 500	$ 500
Effective rate	3.15%
Unsecured Debt | Fixed-rate 5.55% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 500		$ 500
Effective rate	5.55%		5.55%
Unsecured Debt | Fixed-rate 4.3% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 1,000		$ 1,000
Effective rate	4.30%		4.30%
Unsecured Debt | Fixed-rate 3.4% senior unsecured notes
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		3.40%
Debt instrument, principal amount	$ 1,000	$ 1,000
Effective rate	3.40%
Revolving Credit Facility | Floating-rate revolving credit facility (RCF)
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 0		$ 0
Effective rate	0.00%		0.00%

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 28, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating lease, option to extend term	5 years
Finance lease, option to extend term	5 years
Operating lease, termination period	1 year
Finance lease, termination period	1 year
Assets under finance leases, gross	$ 82
Accumulated depreciation under finance leases	11
Finance lease liabilities	25	$ 25
Right-of-use assets	$ 216	$ 226
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	1 year
Finance lease, remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	30 years
Finance lease, remaining lease term	30 years
Land | Minimum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	48 years
Land | Maximum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	90 years

Leases - Components of Lease Co

Leases - Components of Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 16	$ 13	$ 32	$ 26

Leases - Other Information Rela

Leases - Other Information Related to Leases (Details) - USD ($) $ in Millions	Jan. 01, 2019	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Proceeds from sale of interests in businesses				$ 161	$ 37
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$ 14	$ 10	$ 19	$ 198
Weighted average remaining lease term:
Operating leases (in years)		6 years	5 years	6 years	5 years
Weighted average discount rate:
Operating leases		3.00%	3.00%	3.00%	3.00%
Accounting Standards Update 2016-02
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 188

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Operating leases
2020 (remaining)	$ 32
2021	54
2022	41
2023	33
2024	23
Thereafter	59
Total future minimum lease payments	242
Less: imputed interest	(20)
Total	$ 222	$ 238

Leases - Lease Liabilities (Det

Leases - Lease Liabilities (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Leases [Abstract]
Other current liabilities, operating leases	$ 59	$ 62
Other non-current liabilities, operating leases	163	176
Total	$ 222	$ 238

Related-Party Transactions - Sc

Related-Party Transactions - Schedule of Amounts Related to Revenue and Other Income and Purchase of Goods and Services Incurred in Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Jun. 28, 2020	Jun. 30, 2019
Related Party Transactions [Abstract]
Revenue and other income	$ 18	$ 21	$ 36	$ 44
Purchase of goods and services	$ 14	$ 16	$ 26	$ 35

Related-Party Transactions - _2

Related-Party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Receivables	$ 7	$ 21
Payables	$ 10	$ 9

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Lease liabilities	$ 222	$ 238
Nexperia
Related Party Transaction [Line Items]
Lease liabilities	59
Commitment to affiliated investment funds	$ 50

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Instruments (Details) - Estimate of Fair Value Measurement - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Level 1
Assets:
Marketable equity	$ 12	$ 1
Level 2
Assets:
Derivative instruments-assets	6	10
Liabilities:
Derivative instruments-liabilities	(6)	(1)
Money market funds | Level 1
Assets:
Money market funds	$ 2,007	$ 6

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 28, 2020	Dec. 31, 2019
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	$ 8,004	$ 7,365
Level 2 | Estimate of Fair Value Measurement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	$ 10,300	$ 7,900

Litigation (Details)

Litigation (Details) $ in Millions	6 Months Ended
	Jun. 28, 2020USD ($)individual	Dec. 31, 2019USD ($)
Loss Contingencies [Line Items]
Accrued potential and legal fees	$ 18	$ 44
Insurance reimbursements	8	$ 25
Insurance reimbursement of claims potential maximum exposure	$ 15
Number of birth defect individuals | individual	18
Minimum
Loss Contingencies [Line Items]
Range of possible loss	$ 0
Maximum
Loss Contingencies [Line Items]
Range of possible loss	$ 23