Cover Document
Cover Document - shares | 9 Months Ended | |
Sep. 27, 2020 | Oct. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 27, 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 | 279,749,594 | |
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 | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,267 | $ 2,265 | $ 6,105 | $ 6,576 |
Cost of revenue | (1,177) | (1,079) | (3,158) | (3,167) |
Gross profit | 1,090 | 1,186 | 2,947 | 3,409 |
Research and development | (438) | (396) | (1,265) | (1,219) |
Selling, general and administrative | (203) | (221) | (658) | (699) |
Amortization of acquisition-related intangible assets | (418) | (358) | (1,179) | (1,070) |
Total operating expenses | (1,059) | (975) | (3,102) | (2,988) |
Other income (expense) | 1 | 22 | 110 | 23 |
Operating income (loss) | 32 | 233 | (45) | 444 |
Financial income (expense): | ||||
(Gain) loss on extinguishment of debt | 0 | (1) | 0 | (11) |
Other financial income (expense) | (106) | (84) | (280) | (246) |
Income (loss) before income taxes | (74) | 148 | (325) | 187 |
Benefit (provision) for income taxes | 57 | (28) | 88 | (40) |
Results relating to equity-accounted investees | (1) | (1) | (3) | 2 |
Net income (loss) | (18) | 119 | (240) | 149 |
Less: Net income (loss) attributable to non-controlling interests | 4 | 10 | 17 | 20 |
Net income (loss) attributable to stockholders | $ (22) | $ 109 | $ (257) | $ 129 |
Earnings per share data: | ||||
Basic net income (loss) (in dollars per share) | $ (0.08) | $ 0.39 | $ (0.92) | $ 0.46 |
Diluted net income (loss) (in dollars per share) | $ (0.08) | $ 0.38 | $ (0.92) | $ 0.45 |
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) | 279,467 | 279,074 | 279,511 | 282,496 |
Weighted Average Number of Shares Outstanding, Diluted | 279,467 | 283,518 | 279,511 | 285,819 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (18) | $ 119 | $ (240) | $ 149 |
Other comprehensive income (loss), net of tax: | ||||
Change in fair value cash flow hedges | 4 | (9) | 5 | (4) |
Change in foreign currency translation adjustment | 37 | (41) | 14 | (47) |
Change in net actuarial gain (loss) | (1) | (1) | (4) | (5) |
Total other comprehensive income (loss) | 40 | (51) | 15 | (56) |
Total comprehensive income (loss) | 22 | 68 | (225) | 93 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 4 | 10 | 17 | 20 |
Total comprehensive income (loss) attributable to stockholders | $ 18 | $ 58 | $ (242) | $ 73 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) $ in Millions | Sep. 27, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Current assets: | ||
Cash and cash equivalents | $ 3,566 | $ 1,045 |
Accounts receivable, net | 755 | 667 |
Assets held for sale | 0 | 50 |
Inventories, net | 1,064 | 1,192 |
Other current assets | 219 | 313 |
Total current assets | 5,604 | 3,267 |
Non-current assets: | ||
Other non-current assets | 924 | 732 |
Property, plant and equipment, net of accumulated depreciation of $4,110 and $3,742 | 2,255 | 2,448 |
Identified intangible assets, net of accumulated amortization of $6,843 and $5,764 | 2,380 | 3,620 |
Goodwill | 9,959 | 9,949 |
Total non-current assets | 15,518 | 16,749 |
Total assets | 21,122 | 20,016 |
Current liabilities: | ||
Accounts payable | 697 | 944 |
Restructuring liabilities-current | 25 | 32 |
Other current liabilities | 940 | 815 |
Short-term debt | 1,749 | 0 |
Total current liabilities | 3,411 | 1,791 |
Non-current liabilities: | ||
Long-term debt | 7,607 | 7,365 |
Restructuring Reserve, Noncurrent | 15 | 0 |
Deferred tax liabilities | 136 | 282 |
Other non-current liabilities | 880 | 923 |
Total non-current liabilities | 8,638 | 8,570 |
Total liabilities | 12,049 | 10,361 |
Equity: | ||
Non-controlling interests | 197 | 214 |
Stockholders’ equity: | ||
Common stock, par value €0.20 per share: | 64 | 64 |
Capital in excess of par value | 15,314 | 15,184 |
Treasury shares, at cost : 36,518,520 shares (2019: 34,082,242 shares) | (3,279) | (3,037) |
Accumulated other comprehensive income (loss) | 90 | 75 |
Accumulated deficit | (3,313) | (2,845) |
Total stockholders’ equity | 8,876 | 9,441 |
Total equity | 9,073 | 9,655 |
Total liabilities and equity | 21,122 | 20,016 |
Accumulated depreciation | $ 4,110 | $ 3,742 |
Treasury shares (in shares) | shares | 35,790,955 | 34,082,242 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) $ in Millions | Sep. 27, 2020€ / shares | Dec. 31, 2019€ / shares |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in euros per share) | € 0.20 | € 0.20 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (240) | $ 149 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 1,672 | 1,525 |
Share-based compensation | 295 | 257 |
Amortization of discount (premium) on debt, net | (1) | 34 |
Amortization of debt issuance costs | 7 | 8 |
Net (gain) loss on sale of assets | (111) | (20) |
(Gain) loss on extinguishment of debt | 0 | 11 |
Results relating to equity-accounted investees | 3 | (2) |
Deferred tax expense (benefit) | (274) | (126) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in receivables and other current assets | (1) | (28) |
(Increase) decrease in inventories | 129 | 135 |
Increase (decrease) in accounts payable and other liabilities | (14) | (425) |
Decrease (increase) in other non-current assets | (16) | 36 |
Exchange differences | 6 | 6 |
Other items | (2) | (1) |
Net cash provided by (used for) operating activities | 1,453 | 1,559 |
Cash flows from investing activities: | ||
Purchase of identified intangible assets | (95) | (72) |
Capital expenditures on property, plant and equipment | (288) | (388) |
Proceeds from disposals of property, plant and equipment | 3 | 23 |
Purchase of interests in businesses, net of cash acquired | (21) | 0 |
Proceeds from sale of interests in businesses | 161 | 37 |
Purchase of investments | (15) | (19) |
Proceeds from sale of investments | 0 | 1 |
Net cash provided by (used for) investing activities | (255) | (418) |
Cash flows from financing activities: | ||
Repurchase of long-term debt | 0 | 600 |
Proceeds from the issuance of long-term debt | 2,000 | 1,750 |
Cash paid for debt issuance costs | 15 | 24 |
Payments for Hedge, Financing Activities | 0 | (1) |
Dividends paid to non-controlling interests | 34 | 0 |
Dividends paid to common stockholders | (315) | (214) |
Proceeds from issuance of common stock through stock plans | 64 | 70 |
Purchase of treasury shares and restricted stock unit withholdings | (370) | (1,369) |
Net cash provided by (used for) financing activities | 1,330 | (388) |
Effect of changes in exchange rates on cash positions | (7) | (5) |
Increase (decrease) in cash and cash equivalents | 2,521 | 748 |
Cash and cash equivalents at beginning of period | 1,045 | 2,789 |
Cash and cash equivalents at end of period | 3,566 | 3,537 |
Net cash paid during the period for: | ||
Interest | 211 | 147 |
Income taxes | 103 | 334 |
Net gain (loss) on sale of assets: | ||
Cash proceeds from the sale of assets | 163 | 21 |
Book value of these assets | (52) | (1) |
Non-cash investing activities: | ||
Non-cash capital expenditures | $ 62 | $ 272 |
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 (USD per share) | $ 0.250 | |||||||
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) | 149 | |||||||
Other comprehensive income | $ (56) | |||||||
Dividends common stock (USD per share) | $ 0.875 | |||||||
Balance (in shares) at Sep. 29, 2019 | 279,479 | |||||||
Balance at Sep. 29, 2019 | $ 9,595 | 67 | 15,722 | (4,429) | 67 | (2,037) | 9,390 | 205 |
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 (USD per share) | $ 0.25 | |||||||
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 119 | 109 | 109 | 10 | ||||
Other comprehensive income | (51) | (51) | (51) | |||||
Share-based compensation plans | $ 87 | 87 | 87 | |||||
Shares issued pursuant to stock awards (in shares) | 815 | |||||||
Shares issued pursuant to stock awards | $ 32 | 77 | (45) | 32 | ||||
Treasury shares and restricted stock unit withholdings (in shares) | (89) | |||||||
Treasury shares and restricted stock unit withholdings | $ (9) | (9) | (9) | |||||
Shareholder tax on repurchased shares | $ 2 | 2 | 2 | |||||
Dividends common stock (USD per share) | $ 0.375 | |||||||
Dividends common stock | $ (105) | (105) | (105) | |||||
Balance (in shares) at Sep. 29, 2019 | 279,479 | |||||||
Balance at Sep. 29, 2019 | $ 9,595 | 67 | 15,722 | (4,429) | 67 | (2,037) | 9,390 | 205 |
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 (USD per share) | $ 0.375 | |||||||
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) | (240) | |||||||
Other comprehensive income | $ 15 | |||||||
Dividends common stock (USD per share) | $ 1.125 | |||||||
Balance (in shares) at Sep. 27, 2020 | 279,729 | |||||||
Balance at Sep. 27, 2020 | $ 9,073 | 64 | 15,314 | (3,279) | 90 | (3,313) | 8,876 | 197 |
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 (USD per share) | $ 0.375 | |||||||
Dividends non-controlling interests | $ (34) | (34) | ||||||
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] | ||||||||
Net income (loss) | (18) | (22) | (22) | 4 | ||||
Other comprehensive income | 40 | 40 | 40 | |||||
Share-based compensation plans | $ 86 | 86 | 86 | |||||
Shares issued pursuant to stock awards (in shares) | 611 | |||||||
Shares issued pursuant to stock awards | $ 27 | 58 | (31) | 27 | ||||
Treasury shares and restricted stock unit withholdings (in shares) | (95) | |||||||
Treasury shares and restricted stock unit withholdings | $ (12) | (12) | (12) | |||||
Dividends common stock (USD per share) | $ 0.375 | |||||||
Dividends common stock | $ (105) | (105) | ||||||
Balance (in shares) at Sep. 27, 2020 | 279,729 | |||||||
Balance at Sep. 27, 2020 | $ 9,073 | $ 64 | $ 15,314 | $ (3,279) | $ 90 | $ (3,313) | $ 8,876 | $ 197 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends common stock (USD per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.25 | $ 0.250 | $ 1.125 | $ 0.875 |
Basis of Presentation and Overv
Basis of Presentation and Overview | 9 Months Ended |
Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Overview | Basis of Presentation and OverviewWe 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. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 27, 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 ASU 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 | 9 Months Ended |
Sep. 27, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestments | Acquisitions and Divestments 2020 There were no material acquisitions during the first nine 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 | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Distributors 1,243 1,145 3,286 3,190 Original Equipment Manufacturers and Electronic Manufacturing Services 983 1,082 2,695 3,308 Other 41 38 124 78 Total 2,267 2,265 6,105 6,576 Depreciation, amortization and impairment For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Depreciation of property, plant and equipment 139 135 408 387 Amortization of internal use software 1 2 4 6 Amortization of other identified intangible assets 1) 449 380 1,260 1,132 Total - Depreciation, amortization and impairment 589 517 1,672 1,525 1) For the three and nine month periods ending September 27, 2020, the amounts include an impairment relative to IPR&D acquired as part of the acquisition of Freescale for an amount of $36 million. 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Result from MSA and TSA arrangements — (1) (1) 1 Other, net 1 23 111 22 Total - Other income (expense) 1 22 110 23 Financial income and expense For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Interest income 3 17 11 42 Interest expense (100) (98) (276) (274) Total interest expense, net (97) (81) (265) (232) Extinguishment of debt — (1) — (11) Foreign exchange rate results (5) 1 (6) (6) Miscellaneous financing costs/income and other, net (4) (4) (9) (8) Total other financial income/ (expense) (9) (4) (15) (25) Total - Financial income and expenses (106) (85) (280) (257) Earnings per share The computation of earnings per share (EPS) is presented in the following table: For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Net income (loss) (18) 119 (240) 149 Less: net income (loss) attributable to non-controlling interests 4 10 17 20 Net income (loss) attributable to stockholders (22) 109 (257) 129 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,467 279,074 279,511 282,496 Plus incremental shares from assumed conversion of: Options 1) — 772 — 775 Restricted Share Units, Performance Share Units and Equity Rights 2) — 3,672 — 2,548 Warrants 3) — — — — Dilutive potential common shares — 4,444 — 3,323 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,467 283,518 279,511 285,819 EPS attributable to stockholders in $: Basic net income (loss) (0.08) 0.39 (0.92) 0.46 Diluted net income (loss) (0.08) 0.38 (0.92) 0.45 1) Stock options to purchase up to 0.9 million shares of NXP’s common stock that were outstanding in Q3 2020 (Q3 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 7.4 million shares that were outstanding in Q3 2020 (Q3 2019: 0.2 million shares) and unvested RSUs, PSUs and equity rights of 7.4 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 $131.39 per share were outstanding in Q3 2019, no warrants were outstanding at the end of Q3 2020. At the end of Q3 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 September 27, 2020 and December 31, 2019, our cash balance was $3,566 million and $1,045 million, respectively, of which $177 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 second quarter of 2020, a dividend of $90 million was declared by SSMC, which was distributed in the third quarter, 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 September 27, 2020 (December 31, 2019: $41 million). Inventories are summarized as follows: September 27, 2020 December 31, 2019 Raw materials 60 52 Work in process 852 894 Finished goods 152 246 1,064 1,192 The amounts recorded above are net of allowance for obsolescence of $126 million as of September 27, 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 14 3 (5) 12 Amounts reclassified out of accumulated other — 3 — 3 Tax effects — (1) 1 — Other comprehensive income (loss) 14 5 (4) 15 As of September 27, 2020 217 7 (134) 90 Cash dividends The following dividends were declared during the first three 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 0.250 71 Second quarter 0.375 105 0.250 70 Third quarter 0.375 105 0.375 105 1.125 315 0.875 246 The dividend declared in the third quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of September 27, 2020 and subsequently paid on October 5, 2020. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 27, 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 September 27, 2020 Restructuring liabilities 32 38 (30) — — 40 The restructuring charges consist of personnel lay-off costs of $40 million for the nine month period ended September 27, 2020 (September 29, 2019 : $29 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Cost of revenue 12 (1) 15 3 Research and development 7 — 17 16 Selling, general and administrative 2 — 8 10 Net restructuring charges 21 (1) 40 29 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Benefit/provision for income taxes: For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Tax expense (benefit) (57) 28 (88) 40 Effective tax rate 77.0 % 18.9 % 27.1 % 21.4 % 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 nine months of 2020 was a benefit of 27.1% on a pre-tax loss compared with an expense of 21.4% on a pre-tax income for the first nine 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 less Netherlands related interest expense that was impacted by the interest limitation rules ($20 million) due to less qualifying interest expenses and higher qualifying income linked to the divestiture of the VAS business, which also had an offset effect due to the increase in non deductible goodwill ($10 million), an increase of tax incentives in the U.S. ($23 million) mainly due to the early adoption of the US regulations issued in Q3 2020 which is offset by the decrease of other tax incentives ($20 million) mainly driven by a lower qualifying income in 2020, as well as an increase in tax expense related to differences in tax rates ($14 million). 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 third quarter of 2020 by $2 million and decreased by $4 million for the third quarter 2019 (YTD 2020: a decrease of $7 million and YTD 2019: a decrease of $8 million). The benefit of this tax holiday on net income per share (diluted) was $0.01 for the third |
Identified Intangible Assets
Identified Intangible Assets | 9 Months Ended |
Sep. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | Identified Intangible Assets Identified intangible assets as of September 27, 2020 and December 31, 2019, respectively, were composed of the following: September 27, 2020 December 31, 2019 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 206 — 272 — Marketing-related 82 (79) 81 (67) Customer-related 967 (379) 968 (340) Technology-based 7,968 (6,385) 8,063 (5,357) Identified intangible assets 9,223 (6,843) 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) 176 2021 662 2022 563 2023 337 2024 169 Thereafter 473 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 4 years as of September 27, 2020 (December 31, 2019: 3 years). |
Debt
Debt | 9 Months Ended |
Sep. 27, 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 September 27, 2020 and December 31, 2019: September 27, 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 (44) (35) Total debt, including unamortized discounts, 9,356 7,365 Less: current portion of long-term debt 1,749 — Long-term debt 7,607 7,365 |
Leases
Leases | 9 Months Ended |
Sep. 27, 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 September 27, 2020, assets recorded under finance leases were $82 million and accumulated depreciation associated with finance leases was $12 million ($82 million and $9 million, respectively, as of December 31, 2019). Finance lease liabilities amount to $24 million as of September 27, 2020 ($25 million as of December 31, 2019). The components of operating lease expense were as follows: For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Operating lease cost 16 15 48 41 Other information related to operating leases was as follows: For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1) 10 62 29 260 1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842. For the nine months ended September 27, 2020 September 29, 2019 Weighted average remaining lease term: Operating leases 6 years 6 years Weighted average discount rate: Operating leases 3 % 3 % Future minimum lease payments as of September 27, 2020 were as follows: As of September 27, 2020 Operating leases 2020 (remaining) 18 2021 57 2022 45 2023 37 2024 25 Thereafter 60 Total future minimum lease payments 242 Less: imputed interest (19) Total 223 Lease liabilities related to leases are split between current and non-current: Operating leases As of September 27, 2020 December 31, 2019 Other current liabilities 61 62 Other non-current liabilities 162 176 Total 223 238 Operating lease right-of-use assets are $215 million as of September 27, 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 | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Revenue and other income 16 19 52 63 Purchase of goods and services 9 15 35 50 The following table presents the amounts related to receivable and payable balances with these related parties: September 27, 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 September 27, 2020, and committed $50 million to an investment fund affiliated with Nexperia’s owners at that time. During the quarter ended September 27, 2020, the first calls on the investment commitment were made in the amount of $15 million. The lease commitments are reflected in our recorded lease liabilities in other current and non-current liabilities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 27, 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 September 27, 2020 December 31, 2019 Assets: Money market funds 1 2,637 6 Marketable equity securities 1 13 1 Derivative instruments-assets 2 9 10 Liabilities: Derivative instruments-liabilities 2 (7) (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 September 27, 2020, the estimated fair value of debt, including the current portion, was $10.4 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 | 9 Months Ended |
Sep. 27, 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 September 27, 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 September 27, 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 September 27, 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. |
Subsequent Events
Subsequent Events | Sep. 28, 2020 |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsNXP Semiconductors N.V. through its subsidiaries NXP B.V. and NXP Funding LLC, delivered notice of redemption on September 9, 2020 to the Trustee of its 4.125% Senior Notes due 2021 and 4.625% Senior Notes due 2022, and fully redeemed on September 28, 2020, the $400 million of outstanding principal of the 4.625% Senior Notes due 2022 and the $1.35 billion of outstanding principal of the 4.125% Senior Notes due 2021 (the “Note Redemption”) for a total amount of $1.83 billion, paid with available cash on the balance sheet. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 27, 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 ASU 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) | 9 Months Ended |
Sep. 27, 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) | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Distributors 1,243 1,145 3,286 3,190 Original Equipment Manufacturers and Electronic Manufacturing Services 983 1,082 2,695 3,308 Other 41 38 124 78 Total 2,267 2,265 6,105 6,576 |
Depreciation Amortization And Impairment Charges [Table Text Block] | For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Depreciation of property, plant and equipment 139 135 408 387 Amortization of internal use software 1 2 4 6 Amortization of other identified intangible assets 1) 449 380 1,260 1,132 Total - Depreciation, amortization and impairment 589 517 1,672 1,525 1) For the three and nine month periods ending September 27, 2020, the amounts include an impairment relative to IPR&D acquired as part of the acquisition of Freescale for an amount of $36 million. |
Schedule of other income (expense) | The following table presents the split of other income (expense): For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Result from MSA and TSA arrangements — (1) (1) 1 Other, net 1 23 111 22 Total - Other income (expense) 1 22 110 23 |
Schedule of financial income and expense | For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Interest income 3 17 11 42 Interest expense (100) (98) (276) (274) Total interest expense, net (97) (81) (265) (232) Extinguishment of debt — (1) — (11) Foreign exchange rate results (5) 1 (6) (6) Miscellaneous financing costs/income and other, net (4) (4) (9) (8) Total other financial income/ (expense) (9) (4) (15) (25) Total - Financial income and expenses (106) (85) (280) (257) |
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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Net income (loss) (18) 119 (240) 149 Less: net income (loss) attributable to non-controlling interests 4 10 17 20 Net income (loss) attributable to stockholders (22) 109 (257) 129 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,467 279,074 279,511 282,496 Plus incremental shares from assumed conversion of: Options 1) — 772 — 775 Restricted Share Units, Performance Share Units and Equity Rights 2) — 3,672 — 2,548 Warrants 3) — — — — Dilutive potential common shares — 4,444 — 3,323 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 279,467 283,518 279,511 285,819 EPS attributable to stockholders in $: Basic net income (loss) (0.08) 0.39 (0.92) 0.46 Diluted net income (loss) (0.08) 0.38 (0.92) 0.45 1) Stock options to purchase up to 0.9 million shares of NXP’s common stock that were outstanding in Q3 2020 (Q3 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 7.4 million shares that were outstanding in Q3 2020 (Q3 2019: 0.2 million shares) and unvested RSUs, PSUs and equity rights of 7.4 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 $131.39 per share were outstanding in Q3 2019, no warrants were outstanding at the end of Q3 2020. At the end of Q3 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: September 27, 2020 December 31, 2019 Raw materials 60 52 Work in process 852 894 Finished goods 152 246 1,064 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 14 3 (5) 12 Amounts reclassified out of accumulated other — 3 — 3 Tax effects — (1) 1 — Other comprehensive income (loss) 14 5 (4) 15 As of September 27, 2020 217 7 (134) 90 |
Schedule of cash dividends | The following dividends were declared during the first three 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 0.250 71 Second quarter 0.375 105 0.250 70 Third quarter 0.375 105 0.375 105 1.125 315 0.875 246 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 27, 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 September 27, 2020 Restructuring liabilities 32 38 (30) — — 40 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Cost of revenue 12 (1) 15 3 Research and development 7 — 17 16 Selling, general and administrative 2 — 8 10 Net restructuring charges 21 (1) 40 29 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Tax expense (benefit) (57) 28 (88) 40 Effective tax rate 77.0 % 18.9 % 27.1 % 21.4 % |
Identified Intangible Assets (T
Identified Intangible Assets (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identified Intangible Assets | Identified intangible assets as of September 27, 2020 and December 31, 2019, respectively, were composed of the following: September 27, 2020 December 31, 2019 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 206 — 272 — Marketing-related 82 (79) 81 (67) Customer-related 967 (379) 968 (340) Technology-based 7,968 (6,385) 8,063 (5,357) Identified intangible assets 9,223 (6,843) 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) 176 2021 662 2022 563 2023 337 2024 169 Thereafter 473 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the outstanding debt as of September 27, 2020 and December 31, 2019: September 27, 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 (44) (35) Total debt, including unamortized discounts, 9,356 7,365 Less: current portion of long-term debt 1,749 — Long-term debt 7,607 7,365 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Operating lease cost 16 15 48 41 Other information related to operating leases was as follows: For the three months ended For the nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1) 10 62 29 260 1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842. For the nine months ended September 27, 2020 September 29, 2019 Weighted average remaining lease term: Operating leases 6 years 6 years Weighted average discount rate: Operating leases 3 % 3 % |
Schedule of Future Minimum Operating Lease Payments | Future minimum lease payments as of September 27, 2020 were as follows: As of September 27, 2020 Operating leases 2020 (remaining) 18 2021 57 2022 45 2023 37 2024 25 Thereafter 60 Total future minimum lease payments 242 Less: imputed interest (19) Total 223 |
Schedule of Lease Liabilities | Lease liabilities related to leases are split between current and non-current: Operating leases As of September 27, 2020 December 31, 2019 Other current liabilities 61 62 Other non-current liabilities 162 176 Total 223 238 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 27, 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 nine months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Revenue and other income 16 19 52 63 Purchase of goods and services 9 15 35 50 |
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: September 27, 2020 December 31, 2019 Receivables 7 21 Payables 10 9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 27, 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 September 27, 2020 December 31, 2019 Assets: Money market funds 1 2,637 6 Marketable equity securities 1 13 1 Derivative instruments-assets 2 9 10 Liabilities: Derivative instruments-liabilities 2 (7) (1) |
Acquisitions and Divestments (D
Acquisitions and Divestments (Details) $ in Millions | Feb. 03, 2020USD ($) | Dec. 06, 2019USD ($) | Mar. 27, 2019USD ($) | Sep. 27, 2020USD ($)business | Sep. 29, 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 | Sep. 27, 2020 | Dec. 31, 2019 | Dec. 06, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,959 | $ 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 | Sep. 27, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Weighted Average Estimated Useful Life (in Years) | 4 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 | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,267 | $ 2,265 | $ 6,105 | $ 6,576 |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,243 | 1,145 | 3,286 | 3,190 |
Original Equipment Manufacturers and Electronic Manufacturing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 983 | 1,082 | 2,695 | 3,308 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 41 | $ 38 | $ 124 | $ 78 |
Supplemental Financial Inform_4
Supplemental Financial Information - Depreciation, amortization and impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Depreciation of property, plant and equipment | $ 139 | $ 135 | $ 408 | $ 387 |
Total - Depreciation, amortization and impairment | 589 | 517 | 1,672 | 1,525 |
Internal Use Software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 1 | 2 | 4 | 6 |
Other Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 449 | $ 380 | 1,260 | $ 1,132 |
Other Intangible Assets | Freescale [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 36 | $ 36 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other income (expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Other Nonrecurring Income (Expense) [Line Items] | ||||
Other, net | $ 1 | $ 23 | $ 111 | $ 22 |
Total - Other income (expense) | 1 | 22 | 110 | 23 |
Manufacturing Service Arrangements and Transitional Service Arrangements | ||||
Other Nonrecurring Income (Expense) [Line Items] | ||||
Result from MSA and TSA arrangements | $ 0 | $ (1) | $ (1) | $ 1 |
Supplemental Financial Inform_6
Supplemental Financial Information - Financial income and expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest income | $ 3 | $ 17 | $ 11 | $ 42 |
Interest expense | (100) | (98) | (276) | (274) |
Total interest expense, net | (97) | (81) | (265) | (232) |
(Gain) loss on extinguishment of debt | 0 | (1) | 0 | (11) |
Foreign exchange rate results | (5) | 1 | (6) | (6) |
Miscellaneous financing costs/income and other, net | (4) | (4) | (9) | (8) |
Total other financial income/ (expense) | (9) | (4) | (15) | (25) |
Total - Financial income and expenses | $ (106) | $ (85) | $ (280) | $ (257) |
Supplemental Financial Inform_7
Supplemental Financial Information - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Net income (loss) | $ (18) | $ (209) | $ (13) | $ 119 | $ 46 | $ (16) | $ (240) | $ 149 |
Less: Net income (loss) attributable to non-controlling interests | 4 | 10 | 17 | 20 | ||||
Net income (loss) attributable to stockholders | $ (22) | $ 109 | $ (257) | $ 129 | ||||
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares) | 279,467,000 | 279,074,000 | 279,511,000 | 282,496,000 | ||||
Options (in shares) | 0 | 772,000 | 0 | 775,000 | ||||
Restricted Share Units, Performance Share Units and Equity Rights (in shares) | 0 | 3,672,000 | 0 | 2,548,000 | ||||
Warrants (in shares) | 0 | 0 | 0 | 0 | ||||
Dilutive potential common shares (in shares) | 0 | 4,444,000 | 0 | 3,323,000 | ||||
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares) | 279,467,000 | 283,518,000 | 279,511,000 | 285,819,000 | ||||
Basic net income (loss) (in dollars per share) | $ (0.08) | $ 0.39 | $ (0.92) | $ 0.46 | ||||
Diluted net income (loss) (in dollars per share) | $ (0.08) | $ 0.38 | $ (0.92) | $ 0.45 | ||||
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) | 7,400,000 | 200,000 | 7,400,000 | 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) | $ 131.39 | $ 131.39 |
Supplemental Financial Inform_8
Supplemental Financial Information - Cash and cash equivalents (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 31, 2019 | |
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | $ 3,566,000,000 | $ 3,566,000,000 | $ 1,045,000,000 | ||||||
Dividends | 105,000,000 | $ 105,000,000 | $ 105,000,000 | $ 105,000,000 | $ 70,000,000 | $ 71,000,000 | 315,000,000 | $ 246,000,000 | |
SSMC | |||||||||
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | $ 177,000,000 | 177,000,000 | $ 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 | Sep. 27, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods under consignment | $ 36 | $ 41 |
Raw materials | 60 | 52 |
Work in process | 852 | 894 |
Finished goods | 152 | 246 |
Inventory, Net | 1,064 | 1,192 |
Allowance for obsolescence | $ 126 | $ 114 |
Supplemental Financial Infor_10
Supplemental Financial Information - Accumulated other comprehensive income (loss) (Details) $ in Millions | 9 Months Ended |
Sep. 27, 2020USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance | $ 9,655 |
Other comprehensive income (loss) before reclassifications | 12 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 3 |
Other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 15 |
Balance | 9,073 |
Currency translation differences | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance | 203 |
Other comprehensive income (loss) before reclassifications | 14 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 14 |
Balance | 217 |
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 | 3 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 3 |
Other comprehensive income (loss) | (1) |
Other comprehensive income (loss) | 5 |
Balance | 7 |
Net actuarial gain/(losses) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance | (130) |
Other comprehensive income (loss) before reclassifications | (5) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 1 |
Other comprehensive income (loss) | (4) |
Balance | (134) |
Accumulated other comprehensive income (loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance | 75 |
Balance | $ 90 |
Supplemental Financial Infor_11
Supplemental Financial Information - Cash dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Dividends per share (USD per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.25 | $ 0.250 | $ 1.125 | $ 0.875 |
Dividends | $ 105 | $ 105 | $ 105 | $ 105 | $ 70 | $ 71 | $ 315 | $ 246 |
Restructuring - Change in Restr
Restructuring - Change in Restructuring Reserve (Details) $ in Millions | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | $ 32 |
Additions | 38 |
Utilized | (30) |
Released | 0 |
Other changes | 0 |
Restructuring liability, ending balance | $ 40 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 21 | $ (1) | $ 40 | $ 29 |
Personnel lay-off costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 40 | $ 29 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges Recorded in Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | $ 21 | $ (1) | $ 40 | $ 29 |
Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | 12 | (1) | 15 | 3 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | 7 | 0 | 17 | 16 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | $ 2 | $ 0 | $ 8 | $ 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 | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense (benefit) | $ (57) | $ 28 | $ (88) | $ 40 |
Effective tax rate | 77.00% | 18.90% | 27.10% | 21.40% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 77.00% | 18.90% | 27.10% | 21.40% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 20 | |||
Increase in non deductible goodwill | 10 | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 23 | |||
Effective Income Tax Rate Reconciliation, Tax Incentives | 20 | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | $ 14 | |||
Foreign income tax change due to impact of tax holiday | $ 2 | $ 4 | $ 7 | $ 8 |
Income tax holiday (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 |
Identified Intangible Assets -
Identified Intangible Assets - Summary of Identified Intangible Assets (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 9,223 | $ 9,384 |
Finite-lived intangible assets, accumulated amortization | (6,843) | (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 | (79) | (67) |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 967 | 968 |
Finite-lived intangible assets, accumulated amortization | (379) | (340) |
Technology-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 7,968 | 8,063 |
Finite-lived intangible assets, accumulated amortization | (6,385) | (5,357) |
In-process R&D (IPR&D) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | $ 206 | $ 272 |
Identified Intangible Assets _2
Identified Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Other Intangible Assets $ in Millions | Sep. 27, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2020 (remaining) | $ 176 |
2021 | 662 |
2022 | 563 |
2023 | 337 |
2024 | 169 |
Thereafter | $ 473 |
Identified Intangible Assets _3
Identified Intangible Assets - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 27, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Expected weighted average remaining life of identified intangibles | 4 years | 3 years |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Sep. 27, 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 | (44) | (35) | |
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments | 9,356 | 7,365 | |
Less: current portion of long-term debt | 1,749 | 0 | |
Long-term debt | 7,607 | 7,365 | |
Unsecured Debt | Fixed-rate 4.125% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 1,350 | $ 1,350 | |
Debt Instrument, Interest Rate, Effective Percentage | 4.125% | 4.125% | |
Unsecured Debt | Fixed-rate 4.625% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 400 | $ 400 | |
Debt Instrument, Interest Rate, Effective Percentage | 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 | |
Debt Instrument, Interest Rate, Effective Percentage | 3.875% | 3.875% | |
Unsecured Debt | Fixed-rate 4.625% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 900 | $ 900 | |
Debt Instrument, Interest Rate, Effective Percentage | 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 | |
Debt Instrument, Interest Rate, Effective Percentage | 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 | $ 0 |
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 0.00% | |
Unsecured Debt | Fixed-rate 5.35% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Effective Percentage | 5.35% | 5.35% | |
Unsecured Debt | Fixed-rate 3.875% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 750 | $ 750 | |
Debt Instrument, Interest Rate, Effective Percentage | 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 | $ 0 |
Debt Instrument, Interest Rate, Effective Percentage | 3.15% | 0.00% | |
Unsecured Debt | Fixed-rate 5.55% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Effective Percentage | 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 | |
Debt Instrument, Interest Rate, Effective Percentage | 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 | $ 0 |
Debt Instrument, Interest Rate, Effective Percentage | 3.40% | 0.00% | |
Revolving Credit Facility | Floating-rate revolving credit facility (RCF) | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 0 | $ 0 | |
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 0.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 27, 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 | $ 82 |
Accumulated depreciation under finance leases | 12 | 9 |
Finance lease liabilities | 24 | 25 |
Right-of-Use Asset | $ 215 | $ 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 | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 16 | $ 15 | $ 48 | $ 41 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 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 | $ 10 | $ 62 | $ 29 | $ 260 | |
Weighted average remaining lease term: | |||||
Operating leases (in years) | 6 years | 6 years | 6 years | 6 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 | Sep. 27, 2020 | Dec. 31, 2019 |
Operating leases | ||
2020 (remaining) | $ 18 | |
2021 | 57 | |
2022 | 45 | |
2023 | 37 | |
2024 | 25 | |
Thereafter | 60 | |
Total future minimum lease payments | 242 | |
Less: imputed interest | (19) | |
Total | $ 223 | $ 238 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Other current liabilities, operating leases | $ 61 | $ 62 |
Other non-current liabilities, operating leases | 162 | 176 |
Total | $ 223 | $ 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 | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Related Party Transactions [Abstract] | ||||
Revenue and other income | $ 16 | $ 19 | $ 52 | $ 63 |
Purchase of goods and services | $ 9 | $ 15 | $ 35 | $ 50 |
Related-Party Transactions - _2
Related-Party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Details) - USD ($) $ in Millions | Sep. 27, 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 | Sep. 27, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Lease liabilities | $ 223 | $ 238 |
Nexperia | ||
Related Party Transaction [Line Items] | ||
Lease liabilities | 59 | |
Commitment to affiliated investment funds | 50 | |
Amount Called on Commitment Affiliated To Investment Funds | $ 15 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments (Details) - Estimate of Fair Value Measurement - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 |
Level 1 | ||
Assets: | ||
Marketable equity securities | $ 13 | $ 1 |
Level 2 | ||
Assets: | ||
Derivative instruments-assets | 9 | 10 |
Liabilities: | ||
Derivative instruments-liabilities | (7) | (1) |
Money market funds | Level 1 | ||
Assets: | ||
Money market funds | $ 2,637 | $ 6 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 7,607 | $ 7,365 |
Level 2 | Estimate of Fair Value Measurement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 10,400 | $ 7,900 |
Litigation (Details)
Litigation (Details) $ in Millions | 9 Months Ended | |
Sep. 27, 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 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Sep. 28, 2020 | Sep. 27, 2020 |
Subsequent Event [Line Items] | ||
Early Repayment of Senior Debt | $ 1,830 | |
Subsequent Event | Fixed-rate 4.125% senior unsecured notes | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | |
Repayments of Debt | $ 1,350 | |
Subsequent Event | Fixed-rate 4.625% senior unsecured notes | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | |
Repayments of Debt | $ 400 |