Cover Document
Cover Document - shares | 6 Months Ended | |
Jul. 04, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 4, 2021 | |
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 | 265,134,880 | |
Amendment Flag | false | |
Entity Central Index Key | 0001413447 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,596 | $ 1,817 | $ 5,163 | $ 3,838 |
Cost of revenue | (1,174) | (957) | (2,386) | (1,981) |
Gross profit | 1,422 | 860 | 2,777 | 1,857 |
Research and development | (476) | (402) | (937) | (827) |
Selling, general and administrative | (234) | (222) | (456) | (455) |
Amortization of acquisition-related intangible assets | (139) | (380) | (319) | (761) |
Total operating expenses | (849) | (1,004) | (1,712) | (2,043) |
Other income (expense) | 0 | (1) | 0 | 109 |
Operating income (loss) | 573 | (145) | 1,065 | (77) |
Financial income (expense): | ||||
Other financial income (expense) | (100) | (96) | (187) | (174) |
Income (loss) before income taxes | 473 | (241) | 878 | (251) |
Benefit (provision) for income taxes | (65) | 33 | (105) | 31 |
Results relating to equity-accounted investees | (2) | (1) | (3) | (2) |
Net income (loss) | 406 | (209) | 770 | (222) |
Less: Net income (loss) attributable to non-controlling interests | 9 | 5 | 20 | 13 |
Net income (loss) attributable to stockholders | $ 397 | $ (214) | $ 750 | $ (235) |
Earnings per share data: | ||||
Basic net income (loss) (in dollars per share) | $ 1.46 | $ (0.77) | $ 2.73 | $ (0.84) |
Diluted net income (loss) (in dollars per share) | $ 1.42 | $ (0.77) | $ 2.67 | $ (0.84) |
Weighted average number of shares of common stock outstanding during the period (in thousands): | ||||
Basic (in shares) | 272,686 | 279,142 | 275,145 | 279,533 |
Diluted (in shares) | 278,735 | 279,142 | 281,063 | 279,533 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 406 | $ (209) | $ 770 | $ (222) |
Other comprehensive income (loss), net of tax: | ||||
Change in fair value cash flow hedges | 0 | 11 | (14) | 1 |
Change in foreign currency translation adjustment | 9 | 26 | (33) | (23) |
Change in net actuarial gain (loss) | 0 | (1) | 0 | (3) |
Total other comprehensive income (loss) | 9 | 36 | (47) | (25) |
Total comprehensive income (loss) | 415 | (173) | 723 | (247) |
Less: Comprehensive income (loss) attributable to non-controlling interests | 9 | 5 | 20 | 13 |
Total comprehensive income (loss) attributable to stockholders | $ 406 | $ (178) | $ 703 | $ (260) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) $ in Millions | Jul. 04, 2021USD ($)shares | Dec. 31, 2020USD ($)shares |
Current assets: | ||
Cash and cash equivalents | $ 2,910 | $ 2,275 |
Accounts receivable, net | 991 | 765 |
Inventories, net | 1,116 | 1,030 |
Other current assets | 274 | 254 |
Total current assets | 5,291 | 4,324 |
Non-current assets: | ||
Other non-current assets | 1,094 | 1,013 |
Property, plant and equipment, net of accumulated depreciation of $4,461 and $4,237 | 2,375 | 2,284 |
Identified intangible assets, net of accumulated amortization of $7,277 and $7,007 | 1,891 | 2,242 |
Goodwill | 9,971 | 9,984 |
Total non-current assets | 15,331 | 15,523 |
Total assets | 20,622 | 19,847 |
Current liabilities: | ||
Accounts payable | 1,167 | 991 |
Restructuring liabilities-current | 36 | 60 |
Other current liabilities | 1,133 | 966 |
Total current liabilities | 2,336 | 2,017 |
Non-current liabilities: | ||
Long-term debt | 9,591 | 7,609 |
Restructuring liabilities | 12 | 14 |
Deferred tax liabilities | 90 | 85 |
Other non-current liabilities | 924 | 971 |
Total non-current liabilities | 10,617 | 8,679 |
Total liabilities | 12,953 | 10,696 |
Equity: | ||
Non-controlling interests | 227 | 207 |
Stockholders’ equity: | ||
Common stock, par value €0.20 per share: | 59 | 59 |
Capital in excess of par value | $ 14,312 | $ 14,133 |
Treasury shares (in shares) | shares | 19,809,463 | 9,044,952 |
Treasury shares, at cost : 36,518,520 shares (2019: 34,082,242 shares) | $ (3,102) | $ (1,037) |
Accumulated other comprehensive income (loss) | 70 | 117 |
Accumulated deficit | (3,897) | (4,328) |
Total stockholders’ equity | 7,442 | 8,944 |
Total equity | 7,669 | 9,151 |
Total liabilities and equity | $ 20,622 | $ 19,847 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) $ in Millions | Jul. 04, 2021USD ($)shares | Jul. 04, 2021€ / shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020€ / shares |
Statement of Financial Position [Abstract] | ||||
Accumulated depreciation | $ 4,461 | $ 4,237 | ||
Accumulated amortization | $ 7,277 | $ 7,007 | ||
Common stock, par value (in euros per share) | € / shares | € 0.20 | € 0.20 | ||
Treasury shares (in shares) | shares | 19,809,463 | 9,044,952 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 04, 2021 | Jun. 28, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 770 | $ (222) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 646 | 1,083 |
Share-based compensation | 184 | 212 |
Amortization of discount (premium) on debt, net | 1 | (1) |
Amortization of debt issuance costs | 3 | 4 |
Net (gain) loss on sale of assets | 0 | (110) |
(Gain) loss on equity security, net | 2 | 0 |
Results relating to equity-accounted investees | 3 | 2 |
Deferred tax expense (benefit) | 12 | (156) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in receivables and other current assets | (230) | 251 |
(Increase) decrease in inventories | (86) | (35) |
Increase (decrease) in accounts payable and other liabilities | 124 | (96) |
Decrease (increase) in other non-current assets | (60) | (7) |
Exchange differences | 0 | 1 |
Other items | (1) | 0 |
Net cash provided by (used for) operating activities | 1,368 | 926 |
Cash flows from investing activities: | ||
Purchase of identified intangible assets | (72) | (73) |
Capital expenditures on property, plant and equipment | (300) | (218) |
Proceeds from disposals of property, plant and equipment | 0 | 1 |
Purchase of interests in businesses, net of cash acquired | (1) | (21) |
Proceeds from sale of interests in businesses, net of cash divested | 0 | 161 |
Purchase of investments | (6) | 0 |
Proceeds from Sale of Other Investments | 8 | 0 |
Proceeds from sale of investments | 1 | 0 |
Net cash provided by (used for) investing activities | (370) | (150) |
Cash flows from financing activities: | ||
Proceeds from the issuance of long-term debt | 2,000 | 2,000 |
Cash paid for debt issuance costs | (22) | (15) |
Dividends paid to common stockholders | (260) | (210) |
Proceeds from issuance of common stock through stock plans | 31 | 37 |
Purchase of treasury shares and restricted stock unit withholdings | (2,108) | (358) |
Net cash provided by (used for) financing activities | (360) | 1,454 |
Effect of changes in exchange rates on cash positions | (3) | (9) |
Increase (decrease) in cash and cash equivalents | 635 | 2,221 |
Cash and cash equivalents at beginning of period | 2,275 | 1,045 |
Cash and cash equivalents at end of period | 2,910 | 3,266 |
Net cash paid during the period for: | ||
Interest | 160 | 157 |
Income taxes, net of refunds | 161 | 64 |
Cash proceeds from the sale of assets | 0 | 161 |
Book value of these assets | 0 | (51) |
Non-cash capital expenditures | 167 | 54 |
Proceeds from (Payments for) Other Financing Activities | $ (1) | $ 0 |
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 |
Shares, Issued, Beginning Balance at Dec. 31, 2019 | 281,437 | |||||||
Beginning 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 share repurchase and retired (in shares) | (2,933) | |||||||
Treasury shares repurchased and retired | (355) | (355) | (355) | |||||
Expiration of stock purchase warrants | $ 0 | (56) | 56 | 0 | ||||
Dividends common stock (in dollars per share) | $ 0.375 | |||||||
Dividends common stock | $ (105) | (105) | (105) | |||||
Balance (in shares) at Mar. 29, 2020 | 279,001 | |||||||
Ending balance at Mar. 29, 2020 | 9,258 | $ 64 | 15,236 | (3,345) | 14 | (2,933) | 9,036 | 222 |
Shares, Issued, Beginning Balance at Dec. 31, 2019 | 281,437 | |||||||
Beginning balance at Dec. 31, 2019 | 9,655 | $ 64 | 15,184 | (3,037) | 75 | (2,845) | 9,441 | 214 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (222) | |||||||
Other comprehensive income | (25) | |||||||
Balance (in shares) at Jun. 28, 2020 | 279,213 | |||||||
Ending balance at Jun. 28, 2020 | 9,055 | $ 64 | 15,228 | (3,325) | 50 | (3,155) | 8,862 | 193 |
Shares, Issued, Beginning Balance at Mar. 29, 2020 | 279,001 | |||||||
Beginning 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 share repurchase and retired (in shares) | (40) | |||||||
Treasury shares repurchased and retired | (3) | (3) | (3) | |||||
Expiration of stock purchase warrants | 0 | (112) | 112 | 0 | ||||
Dividends non-controlling interests | $ (34) | (34) | ||||||
Dividends common stock (in dollars per share) | $ 0.375 | |||||||
Dividends common stock | $ (105) | (105) | (105) | |||||
Balance (in shares) at Jun. 28, 2020 | 279,213 | |||||||
Ending balance at Jun. 28, 2020 | 9,055 | $ 64 | 15,228 | (3,325) | 50 | (3,155) | 8,862 | 193 |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 280,475 | |||||||
Beginning balance at Dec. 31, 2020 | 9,151 | $ 59 | 14,133 | (1,037) | 117 | (4,328) | 8,944 | 207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 364 | 353 | 353 | 11 | ||||
Other comprehensive income | (56) | (56) | (56) | |||||
Share-based compensation plans | 91 | 91 | 91 | |||||
Shares issued pursuant to stock awards (in shares) | 361 | |||||||
Shares issued pursuant to stock awards | 31 | 37 | (6) | 31 | ||||
Treasury share repurchase and retired (in shares) | (5,087) | |||||||
Treasury shares repurchased and retired | $ (905) | (905) | (905) | |||||
Dividends common stock (in dollars per share) | $ 0.5625 | |||||||
Dividends common stock | $ (155) | (155) | (155) | |||||
Balance (in shares) at Apr. 04, 2021 | 275,749 | |||||||
Ending balance at Apr. 04, 2021 | 8,521 | $ 59 | 14,224 | (1,905) | 61 | (4,136) | 8,303 | 218 |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 280,475 | |||||||
Beginning balance at Dec. 31, 2020 | 9,151 | $ 59 | 14,133 | (1,037) | 117 | (4,328) | 8,944 | 207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 770 | |||||||
Other comprehensive income | (47) | |||||||
Balance (in shares) at Jul. 04, 2021 | 269,710 | |||||||
Ending balance at Jul. 04, 2021 | 7,669 | $ 59 | 14,312 | (3,102) | 70 | (3,897) | 7,442 | 227 |
Shares, Issued, Beginning Balance at Apr. 04, 2021 | 275,749 | |||||||
Beginning balance at Apr. 04, 2021 | 8,521 | $ 59 | 14,224 | (1,905) | 61 | (4,136) | 8,303 | 218 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 406 | 397 | 397 | 9 | ||||
Other comprehensive income | 9 | 9 | 9 | |||||
Share-based compensation plans | 88 | 88 | 88 | |||||
Shares issued pursuant to stock awards (in shares) | 64 | |||||||
Shares issued pursuant to stock awards | 0 | 6 | (6) | 0 | ||||
Treasury share repurchase and retired (in shares) | (6,103) | |||||||
Treasury shares repurchased and retired | $ (1,203) | (1,203) | (1,203) | |||||
Dividends common stock (in dollars per share) | $ 0.5625 | |||||||
Dividends common stock | $ (152) | (152) | (152) | |||||
Balance (in shares) at Jul. 04, 2021 | 269,710 | |||||||
Ending balance at Jul. 04, 2021 | $ 7,669 | $ 59 | $ 14,312 | $ (3,102) | $ 70 | $ (3,897) | $ 7,442 | $ 227 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jul. 04, 2021 | Apr. 04, 2021 | Jun. 28, 2020 | Mar. 29, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends common stock (in dollars per share) | $ 0.5625 | $ 0.5625 | $ 0.375 | $ 0.375 |
Basis of Presentation and Overv
Basis of Presentation and Overview | 6 Months Ended |
Jul. 04, 2021 | |
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, 2020.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, 2020. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 6 Months Ended |
Jul. 04, 2021 | |
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, 10-K for the year ended December 31, 2020. The accounting policy information below is to aid in the understanding of the financial information disclosed. Accounting standards recently adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 modifies ASC 740 to simplify the accounting for income taxes, removing certain exceptions to the general principles in ASC 740 and amending existing guidance to improve consistent application. ASU 2019-12 became effective for us on January 1, 2021. We have assessed our current positions and the interrelation to the amendments and the adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements. |
Acquisitions and Divestments
Acquisitions and Divestments | 6 Months Ended |
Jul. 04, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestments | Acquisitions and Divestments 2021 There were no material acquisitions or divestments during the first six months of 2021. 2020 There were no material acquisitions during the first six months of 2020. On February 3, 2020, we completed the sale of the Company's Voice and Audio Solutions (VAS) assets, pursuant to the definitive agreement dated August 16, 2019 and which was previously classified as held for sale, with Shenzhen Goodix Technology Co., Ltd. ("Goodix") from China, for a net cash amount of $161 million inclusive of final working capital adjustments. This resulted in a gain of $110 million recorded in Other income (expense) on the Consolidated Statements of Operations. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jul. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Statement of Operations Information: Disaggregation of revenue The following table presents revenue disaggregated by sales channel: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Distributors 1,518 1,059 2,986 2,043 Original Equipment Manufacturers and Electronic Manufacturing Services 1,040 712 2,104 1,712 Other 38 46 73 83 Total 2,596 1,817 5,163 3,838 Depreciation, amortization and impairment For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Depreciation of property, plant and equipment 135 136 267 269 Amortization of internal use software 2 1 4 3 Amortization of other identified intangible assets 1) 168 406 375 811 Total - Depreciation, amortization and impairment 305 543 646 1,083 1) For the six month period ending July 4, 2021, the amount includes an impairment charge as a result of the discontinuation of an IPR&D project 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 six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Result from MSA and TSA arrangements (1) (1) (2) (1) Other, net 1 — 2 110 Total - Other income (expense) — (1) — 109 Financial income and expense For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Interest income 1 4 2 8 Interest expense (90) (94) (177) (176) Total interest expense, net (89) (90) (175) (168) Foreign exchange rate results (1) (5) — (1) Miscellaneous financing costs/income and other, net (10) (1) (12) (5) Total other financial income/ (expense) (11) (6) (12) (6) Total - Financial income and expenses (100) (96) (187) (174) Earnings per share The computation of earnings per share (EPS) is presented in the following table: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Net income (loss) 406 (209) 770 (222) Less: net income (loss) attributable to non-controlling interests 9 5 20 13 Net income (loss) attributable to stockholders 397 (214) 750 (235) Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 272,686 279,142 275,145 279,533 Plus incremental shares from assumed conversion of: Options 1) 394 — 406 — Restricted Share Units, Performance Share Units and Equity Rights 2) 5,655 — 5,512 — Dilutive potential common shares 6,049 — 5,918 — Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 278,735 279,142 281,063 279,533 EPS attributable to stockholders in $: Basic net income (loss) 1.46 (0.77) 2.73 (0.84) Diluted net income (loss) 1.42 (0.77) 2.67 (0.84) 1) There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q2 2021 and YTD 2021 (Q2 2020: 0.9 million shares; YTD 2020: 0.9 million shares) that 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) There were no unvested RSUs, PSUs and equity rights that were outstanding in Q2 2021 and YTD 2021 (Q2 2020: 7.7 million shares; YTD 2020: 7.7 million shares) that 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. Balance Sheet Information Cash and cash equivalents At July 4, 2021 and December 31, 2020, our cash balance was $2,910 million and $2,275 million, respectively, of which $206 million and $185 million was held by SSMC, our consolidated joint venture company with TSMC. Under the terms of our joint venture agreement with TSMC, a portion of this cash can be distributed by way of a dividend to us, but 38.8% of the dividend will be paid to our joint venture partner. During the first six months of 2021, no dividend was declared by SSMC. In 2020, $90 million has been declared by SSMC, distributed subsequent to the end of the second quarter of 2020, with 38.8% being paid to our joint venture partner. Inventories The portion of finished goods stored at customer locations under consignment amounted to $19 million as of July 4, 2021 (December 31, 2020: $31 million). Inventories are summarized as follows: July 4, 2021 December 31, 2020 Raw materials 91 66 Work in process 882 786 Finished goods 143 178 1,116 1,030 The amounts recorded above are net of allowance for obsolescence of $117 million as of July 4, 2021 (December 31, 2020: $122 million). Equity Investments At July 4, 2021 and December 31, 2020, the total carrying value of investments in equity securities is summarized as follows: July 4, 2021 December 31, 2020 Marketable equity securities 20 19 Non-marketable equity securities 22 40 Equity-accounted investments 69 61 111 120 The total carrying value of investments in equity-accounted investees is summarized as follows: July 4, 2021 December 31, 2020 Shareholding % Amount Shareholding % Amount Wise Road Industry Investment Fund I, L.P. 9.66 % 32 10.17 % 29 Others — 37 — 32 69 61 Results related to equity-accounted investees at the end of each period were as follows: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Company’s share in income (loss) (2) (1) (3) (2) Other results — — — — (2) (1) (3) (2) Other current liabilities Other current liabilities at July 4, 2021 and December 31, 2020 consisted of the following: July 4, 2021 December 31, 2020 Accrued compensation and benefits 411 286 Income taxes payable 70 140 Dividend payable 152 105 Other 500 435 1,133 966 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, 2020 281 11 (175) 117 Other comprehensive income (loss) before (33) (9) — (42) Amounts reclassified out of accumulated other — (10) — (10) Tax effects — 5 — 5 Other comprehensive income (loss) (33) (14) — (47) As of July 4, 2021 248 (3) (175) 70 Cash dividends The following dividends were declared during the first quarters of 2021 and 2020 under NXP’s quarterly dividend program: Fiscal year 2021 Fiscal year 2020 Dividend per share Amount Dividend per share Amount First quarter 0.5625 155 0.375 105 Second quarter 0.5625 152 0.375 105 The dividend declared in the second quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of July 4, 2021 and was subsequently paid on July 6, 2021. |
Restructuring
Restructuring | 6 Months Ended |
Jul. 04, 2021 | |
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 2021: As of January 1, 2021 Additions Utilized Released Other As of July 4, 2021 Restructuring liabilities 74 — (25) — (1) 48 The restructuring charges consist of personnel lay-off costs of $1 million restructuring costs incurred for the six month period ended July 4, 2021 (June 28, 2020 : $19 million). These restructuring charges recorded in operating income, for the periods indicated, are included in the following line items in the statement of operations: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Cost of revenue — — — 3 Research and development 1 6 1 10 Selling, general and administrative — 2 — 6 Net restructuring charges 1 8 1 19 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 04, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Benefit/provision for income taxes: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Tax expense (benefit) 65 (33) 105 (31) Effective tax rate 13.7 % 13.7 % 12.0 % 12.4 % Our provision for income taxes for the first six months of 2021 was $105 million (12.0% effective tax rate) compared to a benefit from income taxes of ($31 million) ((12.4%) effective tax rate) for the first six months of 2020. The increase in the income tax expense was due to higher income before income taxes, offset by the net change in the valuation allowance between the two periods and by an increase in tax incentives (both as a result of the improved operational performance of the company). 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 foreign income taxes for the second quarter of 2021 by $3 million and decreased by $2 million for the second quarter 2020 (YTD 2021: a decrease of $7 million and YTD 2020: a decrease of $5 million). The benefit of this tax holiday on net income per share (diluted) was $0.02 for the second quarter of 2021 (YTD 2021: $0.03) and $0.01 for the second quarter of 2020 (YTD 2020: $0.02). |
Identified Intangible Assets
Identified Intangible Assets | 6 Months Ended |
Jul. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | Identified Intangible Assets Identified intangible assets as of July 4, 2021 and December 31, 2020, respectively, were composed of the following: July 4, 2021 December 31, 2020 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 111 — 147 — Marketing-related 81 (81) 81 (81) Customer-related 911 (360) 957 (381) Technology-based 8,065 (6,836) 8,064 (6,545) Identified intangible assets 9,168 (7,277) 9,249 (7,007) (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: 2021 (remaining) 332 2022 576 2023 341 2024 152 2025 100 Thereafter 390 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 July 4, 2021 (December 31, 2020: 4 years). |
Debt
Debt | 6 Months Ended |
Jul. 04, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 11, 2021, NXP B.V., together with NXP Funding LLC and NXP USA, Inc., issued $1 billion of 2.5% senior unsecured notes due May 11, 2031 and $1 billion of 3.25% senior unsecured notes due May 11, 2041. The following table summarizes the outstanding debt as of July 4, 2021 and December 31, 2020: July 4, 2021 December 31, 2020 Maturities Amount Effective Amount Effective 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 2.700 500 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 3.150 500 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 1,000 3.400 Fixed-rate 2.5% senior unsecured notes May, 2031 1,000 2.500 — — Fixed-rate 3.25% senior unsecured notes May, 2041 1,000 3.250 — — Floating-rate revolving credit facility (RCF) Jun, 2024 — — — — Total principal 9,650 7,650 Unamortized discounts, premiums and debt (59) (41) Total debt, including unamortized discounts, 9,591 7,609 Current portion of long-term debt — — Long-term debt 9,591 7,609 |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jul. 04, 2021 | |
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 Semiconductors N.V., the members of the management team of NXP Semiconductors N.V. and equity-accounted investees. The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Revenue and other income 2 18 4 36 Purchase of goods and services 1 14 2 26 The following table presents the amounts related to receivable and payable balances with these related parties: July 4, 2021 December 31, 2020 Receivables 2 3 Payables 7 7 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 04, 2021 | |
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 July 4, 2021 December 31, 2020 Assets: Money market funds 1 2,008 1,469 Marketable equity securities 1 20 19 Derivative instruments-assets 2 2 18 Liabilities: Derivative instruments-liabilities 2 (10) — 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 (as part of other non-current assets) have fair value measurements which are all based on quoted prices in active markets for identical assets or liabilities. For derivatives (as part of other current assets or accrued liabilities) 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 July 4, 2021, the estimated fair value of debt, including the current portion, was $10.5 billion ($8.6 billion as of December 31, 2020). 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 04, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Purchase Commitments The Company maintains purchase commitments with certain suppliers, primarily for raw materials, semi-finished goods and manufacturing services and for some non-production items. Purchase commitments for inventory materials are generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time-horizon can vary for different suppliers. As of July 4, 2021, the Company had purchase commitments of $3,769 million, which are due through 2044. Our long-term obligations increased substantially as we locked in long-term supply with our key manufacturing partners. 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. The Company does not record a gain contingency until the period in which all contingencies are resolved and the gain is realized or realizable. 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 $17 million accrued for potential and current legal proceedings pending as of July 4, 2021, compared to $17 million accrued at December 31, 2020. The accruals are included in “Other current liabilities” and “Other non-current liabilities”. As of July 4, 2021, the Company’s related balance of insurance reimbursements was $8 million (December 31, 2020: $8 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 July 4, 2021, 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 $13 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. Loss recovery In February 2021, NXP’s two wafer manufacturing facilities in Austin, Texas were negatively impacted by unusually severe winter weather conditions that corresponded with a widespread disruption of gas, electricity, and water. The Company has insurance coverage for the repair or replacement of assets that suffered damage or loss and business interruption coverage, including lost profits, and the reimbursement of other expenses and costs that have been incurred relating to the damages and losses suffered. For the three months ended July 4, 2021, the company recognized $109 million in insurance proceeds directly offsetting the loss from operations that were incurred in the period. The Company continues to work closely with its insurance carriers and claims adjusters to ascertain the full amount of insurance recoveries due as a result of the damage and loss |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 04, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Share Repurchases During the period subsequent to July 4, 2021 and through August 2, 2021, we repurchased via a 10b5-1 program $1.0 billion, or 5.0 million shares of our common stock pursuant to our share buyback programs. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jul. 04, 2021 | |
Accounting Policies [Abstract] | |
Recently adopted accounting pronouncements | Accounting standards recently adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 modifies ASC 740 to simplify the accounting for income taxes, removing certain exceptions to the general principles in ASC 740 and amending existing guidance to improve consistent application. ASU 2019-12 became effective for us on January 1, 2021. We have assessed our current positions and the interrelation to the amendments and 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. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of revenue | The following table presents revenue disaggregated by sales channel: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Distributors 1,518 1,059 2,986 2,043 Original Equipment Manufacturers and Electronic Manufacturing Services 1,040 712 2,104 1,712 Other 38 46 73 83 Total 2,596 1,817 5,163 3,838 |
Depreciation Amortization And Impairment Charges [Table Text Block] | For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Depreciation of property, plant and equipment 135 136 267 269 Amortization of internal use software 2 1 4 3 Amortization of other identified intangible assets 1) 168 406 375 811 Total - Depreciation, amortization and impairment 305 543 646 1,083 1) For the six month period ending July 4, 2021, the amount includes an impairment charge as a result of the discontinuation of an IPR&D project 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 six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Result from MSA and TSA arrangements (1) (1) (2) (1) Other, net 1 — 2 110 Total - Other income (expense) — (1) — 109 |
Schedule of financial income and expense | For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Interest income 1 4 2 8 Interest expense (90) (94) (177) (176) Total interest expense, net (89) (90) (175) (168) Foreign exchange rate results (1) (5) — (1) Miscellaneous financing costs/income and other, net (10) (1) (12) (5) Total other financial income/ (expense) (11) (6) (12) (6) Total - Financial income and expenses (100) (96) (187) (174) |
Schedule of earnings per share | The computation of earnings per share (EPS) is presented in the following table: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Net income (loss) 406 (209) 770 (222) Less: net income (loss) attributable to non-controlling interests 9 5 20 13 Net income (loss) attributable to stockholders 397 (214) 750 (235) Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 272,686 279,142 275,145 279,533 Plus incremental shares from assumed conversion of: Options 1) 394 — 406 — Restricted Share Units, Performance Share Units and Equity Rights 2) 5,655 — 5,512 — Dilutive potential common shares 6,049 — 5,918 — Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 278,735 279,142 281,063 279,533 EPS attributable to stockholders in $: Basic net income (loss) 1.46 (0.77) 2.73 (0.84) Diluted net income (loss) 1.42 (0.77) 2.67 (0.84) 1) There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q2 2021 and YTD 2021 (Q2 2020: 0.9 million shares; YTD 2020: 0.9 million shares) that 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) There were no unvested RSUs, PSUs and equity rights that were outstanding in Q2 2021 and YTD 2021 (Q2 2020: 7.7 million shares; YTD 2020: 7.7 million shares) that 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. |
Schedule of inventories | Inventories are summarized as follows: July 4, 2021 December 31, 2020 Raw materials 91 66 Work in process 882 786 Finished goods 143 178 1,116 1,030 |
Marketable Securities | At July 4, 2021 and December 31, 2020, the total carrying value of investments in equity securities is summarized as follows: July 4, 2021 December 31, 2020 Marketable equity securities 20 19 Non-marketable equity securities 22 40 Equity-accounted investments 69 61 111 120 |
Summary of Carrying Value of Investments in Equity-Accounted Investees | The total carrying value of investments in equity-accounted investees is summarized as follows: July 4, 2021 December 31, 2020 Shareholding % Amount Shareholding % Amount Wise Road Industry Investment Fund I, L.P. 9.66 % 32 10.17 % 29 Others — 37 — 32 69 61 |
Results Relating to Equity-Accounted Investees | Results related to equity-accounted investees at the end of each period were as follows: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Company’s share in income (loss) (2) (1) (3) (2) Other results — — — — (2) (1) (3) (2) |
Other Current Liabilities | Other current liabilities at July 4, 2021 and December 31, 2020 consisted of the following: July 4, 2021 December 31, 2020 Accrued compensation and benefits 411 286 Income taxes payable 70 140 Dividend payable 152 105 Other 500 435 1,133 966 |
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, 2020 281 11 (175) 117 Other comprehensive income (loss) before (33) (9) — (42) Amounts reclassified out of accumulated other — (10) — (10) Tax effects — 5 — 5 Other comprehensive income (loss) (33) (14) — (47) As of July 4, 2021 248 (3) (175) 70 |
Schedule of cash dividends | The following dividends were declared during the first quarters of 2021 and 2020 under NXP’s quarterly dividend program: Fiscal year 2021 Fiscal year 2020 Dividend per share Amount Dividend per share Amount First quarter 0.5625 155 0.375 105 Second quarter 0.5625 152 0.375 105 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table presents the changes in restructuring liabilities in 2021: As of January 1, 2021 Additions Utilized Released Other As of July 4, 2021 Restructuring liabilities 74 — (25) — (1) 48 These restructuring charges recorded in operating income, for the periods indicated, are included in the following line items in the statement of operations: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Cost of revenue — — — 3 Research and development 1 6 1 10 Selling, general and administrative — 2 — 6 Net restructuring charges 1 8 1 19 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefits) and Effective Tax Rates | Benefit/provision for income taxes: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Tax expense (benefit) 65 (33) 105 (31) Effective tax rate 13.7 % 13.7 % 12.0 % 12.4 % |
Identified Intangible Assets (T
Identified Intangible Assets (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identified Intangible Assets | Identified intangible assets as of July 4, 2021 and December 31, 2020, respectively, were composed of the following: July 4, 2021 December 31, 2020 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 111 — 147 — Marketing-related 81 (81) 81 (81) Customer-related 911 (360) 957 (381) Technology-based 8,065 (6,836) 8,064 (6,545) Identified intangible assets 9,168 (7,277) 9,249 (7,007) (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: 2021 (remaining) 332 2022 576 2023 341 2024 152 2025 100 Thereafter 390 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the outstanding debt as of July 4, 2021 and December 31, 2020: July 4, 2021 December 31, 2020 Maturities Amount Effective Amount Effective 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 2.700 500 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 3.150 500 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 1,000 3.400 Fixed-rate 2.5% senior unsecured notes May, 2031 1,000 2.500 — — Fixed-rate 3.25% senior unsecured notes May, 2041 1,000 3.250 — — Floating-rate revolving credit facility (RCF) Jun, 2024 — — — — Total principal 9,650 7,650 Unamortized discounts, premiums and debt (59) (41) Total debt, including unamortized discounts, 9,591 7,609 Current portion of long-term debt — — Long-term debt 9,591 7,609 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: For the three months ended For the six months ended July 4, 2021 June 28, 2020 July 4, 2021 June 28, 2020 Revenue and other income 2 18 4 36 Purchase of goods and services 1 14 2 26 |
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: July 4, 2021 December 31, 2020 Receivables 2 3 Payables 7 7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 04, 2021 | |
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 July 4, 2021 December 31, 2020 Assets: Money market funds 1 2,008 1,469 Marketable equity securities 1 20 19 Derivative instruments-assets 2 2 18 Liabilities: Derivative instruments-liabilities 2 (10) — |
Acquisitions and Divestments (D
Acquisitions and Divestments (Details) $ in Millions | Feb. 03, 2020USD ($) | Jul. 04, 2021business | Jun. 28, 2020business |
Business Acquisition [Line Items] | |||
Number of businesses acquired | business | 0 | 0 | |
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 |
Supplemental Financial Inform_3
Supplemental Financial Information - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,596 | $ 1,817 | $ 5,163 | $ 3,838 |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,518 | 1,059 | 2,986 | 2,043 |
Original Equipment Manufacturers and Electronic Manufacturing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,040 | 712 | 2,104 | 1,712 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 38 | $ 46 | $ 73 | $ 83 |
Supplemental Financial Inform_4
Supplemental Financial Information - Depreciation, amortization and impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Depreciation of property, plant and equipment | $ 135 | $ 136 | $ 267 | $ 269 |
Total - Depreciation, amortization and impairment | 305 | 543 | 646 | 1,083 |
Internal Use Software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 2 | 1 | 4 | 3 |
Other Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 168 | $ 406 | 375 | $ 811 |
Other Intangible Assets | Marvell | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 36 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other income (expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Other Nonrecurring Income (Expense) [Line Items] | ||||
Other, net | $ 1 | $ 0 | $ 2 | $ 110 |
Total - Other income (expense) | 0 | (1) | 0 | 109 |
Manufacturing Service Arrangements and Transitional Service Arrangements | ||||
Other Nonrecurring Income (Expense) [Line Items] | ||||
Result from MSA and TSA arrangements | $ (1) | $ (1) | $ (2) | $ (1) |
Supplemental Financial Inform_6
Supplemental Financial Information - Financial income and expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest income | $ 1 | $ 4 | $ 2 | $ 8 |
Interest expense | (90) | (94) | (177) | (176) |
Total interest expense, net | (89) | (90) | (175) | (168) |
Foreign exchange rate results | (1) | (5) | 0 | (1) |
Miscellaneous financing costs/income and other, net | (10) | (1) | (12) | (5) |
Total other financial income/ (expense) | (11) | (6) | (12) | (6) |
Total - Financial income and expenses | $ (100) | $ (96) | $ (187) | $ (174) |
Supplemental Financial Inform_7
Supplemental Financial Information - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 04, 2021 | Apr. 04, 2021 | Jun. 28, 2020 | Mar. 29, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net income (loss) | $ 406 | $ 364 | $ (209) | $ (13) | $ 770 | $ (222) |
Less: Net income (loss) attributable to non-controlling interests | 9 | 5 | 20 | 13 | ||
Net income (loss) attributable to stockholders | $ 397 | $ (214) | $ 750 | $ (235) | ||
Basic (in shares) | 272,686 | 279,142 | 275,145 | 279,533 | ||
Options (in shares) | 394 | 0 | 406 | 0 | ||
Restricted Share Units, Performance Share Units and Equity Rights (in shares) | 5,655 | 0 | 5,512 | 0 | ||
Dilutive potential common shares (in shares) | 6,049 | 0 | 5,918 | 0 | ||
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares) | 278,735 | 279,142 | 281,063 | 279,533 | ||
Basic net income (loss) (in dollars per share) | $ 1.46 | $ (0.77) | $ 2.73 | $ (0.84) | ||
Diluted net income (loss) (in dollars per share) | $ 1.42 | $ (0.77) | $ 2.67 | $ (0.84) | ||
Maximum | Share-based Payment Arrangement, Option | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 900 | 0 | 900 | ||
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) | 0 | 7,700 | 7,700 |
Supplemental Financial Inform_8
Supplemental Financial Information - Cash and cash equivalents (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jul. 04, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 2,910,000,000 | $ 2,275,000,000 |
SSMC | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 206,000,000 | 185,000,000 |
Dividends | $ 0 | $ 90,000,000 |
TSMC | ||
Cash and Cash Equivalents [Line Items] | ||
Ownership percentage by noncontrolling owners | 38.80% | |
SSMC | TSMC | ||
Cash and Cash Equivalents [Line Items] | ||
Ownership percentage by noncontrolling owners | 38.80% |
Supplemental Financial Inform_9
Supplemental Financial Information - Inventories (Details) - USD ($) $ in Millions | Jul. 04, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods under consignment | $ 19 | $ 31 |
Raw materials | 91 | 66 |
Work in process | 882 | 786 |
Finished goods | 143 | 178 |
Inventory, Net | 1,116 | 1,030 |
Allowance for obsolescence | $ 117 | $ 122 |
Supplemental Financial Infor_10
Supplemental Financial Information (Details) - Equity investments - USD ($) $ in Millions | Jul. 04, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Marketable equity securities | $ 20 | $ 19 |
Other Investments | 22 | 40 |
Equity Method Investments | 69 | 61 |
Investments | $ 111 | $ 120 |
Supplemental Financial Infor_11
Supplemental Financial Information - Other current liabilities (Details) - USD ($) $ in Millions | Jul. 04, 2021 | Apr. 04, 2021 | Dec. 31, 2020 | Jun. 28, 2020 | Mar. 29, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accrued Employee Benefits, Current | $ 411 | $ 286 | |||
Taxes Payable, Current | 70 | 140 | |||
Dividends Payable | 152 | $ 155 | 105 | $ 105 | $ 105 |
Other Accrued Liabilities, Current | 500 | 435 | |||
Other current liabilities | $ 1,133 | $ 966 |
Supplemental Financial Infor_12
Supplemental Financial Information - Accumulated other comprehensive income (loss) (Details) $ in Millions | 6 Months Ended |
Jul. 04, 2021USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 9,151 |
Other comprehensive income (loss) before reclassifications | (42) |
Amounts reclassified out of accumulated other comprehensive income (loss) | (10) |
Other comprehensive income (loss) | 5 |
Other comprehensive income (loss) | (47) |
Ending balance | 7,669 |
Currency translation differences | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 281 |
Other comprehensive income (loss) before reclassifications | (33) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | (33) |
Ending balance | 248 |
Change in fair value cash flow hedges | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 11 |
Other comprehensive income (loss) before reclassifications | (9) |
Amounts reclassified out of accumulated other comprehensive income (loss) | (10) |
Other comprehensive income (loss) | 5 |
Other comprehensive income (loss) | (14) |
Ending balance | (3) |
Net actuarial gain/(losses) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (175) |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 0 |
Ending balance | (175) |
Accumulated other comprehensive income (loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 117 |
Ending balance | $ 70 |
Supplemental Financial Infor_13
Supplemental Financial Information - Cash dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jul. 04, 2021 | Apr. 04, 2021 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Dividends common stock (in dollars per share) | $ 0.5625 | $ 0.5625 | $ 0.375 | $ 0.375 | |
Dividends Payable | $ 152 | $ 155 | $ 105 | $ 105 | $ 105 |
Supplemental Financial Infor_14
Supplemental Financial Information - Summary of carrying value of investments in equity-accounted investees (Details) - USD ($) $ in Millions | Jul. 04, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 69 | $ 61 |
Wiseroad | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 9.66% | 10.17% |
Equity Method Investments | $ 32 | $ 29 |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 0.00% | 0.00% |
Equity Method Investments | $ 37 | $ 32 |
Supplemental Financial Infor_15
Supplemental Financial Information - Results relating to equity-accounted investees (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Income Loss from Equity Method Investments Before Extraordinary Items | $ (2) | $ (1) | $ (3) | $ (2) |
Extraordinary Income Loss From Equity Method Investments | 0 | 0 | 0 | 0 |
Income (Loss) from Equity Method Investments | $ (2) | $ (1) | $ (3) | $ (2) |
Restructuring - Change in Restr
Restructuring - Change in Restructuring Reserve (Details) $ in Millions | 6 Months Ended |
Jul. 04, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | $ 74 |
Additions | 0 |
Utilized | (25) |
Released | 0 |
Other changes | (1) |
Restructuring liability, ending balance | $ 48 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1 | $ 8 | $ 1 | $ 19 |
Personnel lay-off costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1 | $ 19 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges Recorded in Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | $ 1 | $ 8 | $ 1 | $ 19 |
Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | 0 | 0 | 0 | 3 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | 1 | 6 | 1 | 10 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | $ 0 | $ 2 | $ 0 | $ 6 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefits) and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense (benefit) | $ 65 | $ (33) | $ 105 | $ (31) |
Effective tax rate | 13.70% | 13.70% | 12.00% | 12.40% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense (benefit) | $ 65 | $ (33) | $ 105 | $ (31) |
Effective tax rate | 13.70% | 13.70% | 12.00% | 12.40% |
Foreign income tax change due to impact of tax holiday | $ 3 | $ 2 | $ 7 | $ 5 |
Income tax holiday (in dollars per share) | $ 0.02 | $ 0.01 | $ 0.03 | $ 0.02 |
Identified Intangible Assets -
Identified Intangible Assets - Summary of Identified Intangible Assets (Details) - USD ($) $ in Millions | Jul. 04, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 9,168 | $ 9,249 |
Finite-lived intangible assets, accumulated amortization | (7,277) | (7,007) |
Marketing-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 81 | 81 |
Finite-lived intangible assets, accumulated amortization | (81) | (81) |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 911 | 957 |
Finite-lived intangible assets, accumulated amortization | (360) | (381) |
Technology-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 8,065 | 8,064 |
Finite-lived intangible assets, accumulated amortization | (6,836) | (6,545) |
In-process R&D (IPR&D) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | $ 111 | $ 147 |
Identified Intangible Assets _2
Identified Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Other Intangible Assets $ in Millions | Jul. 04, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 332 |
2022 | 576 |
2023 | 341 |
2024 | 152 |
2025 | 100 |
Thereafter | $ 390 |
Identified Intangible Assets _3
Identified Intangible Assets - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Apr. 04, 2021 | Jul. 04, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Expected weighted average remaining life of identified intangibles | 4 years | 4 years |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Jul. 04, 2021 | May 11, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 9,650 | $ 7,650 | |
Unamortized discounts, premiums and debt issuance costs | (59) | (41) | |
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments | 9,591 | 7,609 | |
Current portion of long-term debt | 0 | 0 | |
Long-term debt | 9,591 | 7,609 | |
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, principal amount | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 2.70% | |
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, principal amount | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Effective Percentage | 3.15% | 3.15% | |
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, principal amount | $ 1,000 | $ 1,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 3.40% | 3.40% | |
Unsecured Debt | Fixed-Rate 2.5% Senior Unsecured Notes, Maturing May 2031 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 2.50% | ||
Unsecured Debt | Fixed-Rate 3.25% Senior Unsecured Notes, Maturing May 2041 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 | |
Debt Instrument, Interest Rate, Effective Percentage | 3.25% | ||
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% |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Amounts Related to Revenue and Other Income and Purchase of Goods and Services Incurred in Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2021 | Jun. 28, 2020 | Jul. 04, 2021 | Jun. 28, 2020 | |
Related Party Transactions [Abstract] | ||||
Revenue and other income | $ 2 | $ 18 | $ 4 | $ 36 |
Purchase of goods and services | $ 1 | $ 14 | $ 2 | $ 26 |
Related-Party Transactions - _2
Related-Party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Details) - USD ($) $ in Millions | Jul. 04, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Receivables | $ 2 | $ 3 |
Payables | $ 7 | $ 7 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments (Details) - USD ($) $ in Millions | Jul. 04, 2021 | Dec. 31, 2020 |
Assets: | ||
Marketable equity securities | $ 20 | $ 19 |
Estimate of Fair Value Measurement | Level 1 | ||
Assets: | ||
Marketable equity securities | 20 | 19 |
Estimate of Fair Value Measurement | Level 2 | ||
Assets: | ||
Derivative instruments-assets | 2 | 18 |
Liabilities: | ||
Derivative instruments-liabilities | (10) | 0 |
Estimate of Fair Value Measurement | Money market funds | Level 1 | ||
Assets: | ||
Money market funds | $ 2,008 | $ 1,469 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jul. 04, 2021 | Dec. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 9,591 | $ 7,609 |
Level 2 | Estimate of Fair Value Measurement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 10,500 | $ 8,600 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 04, 2021USD ($) | Jul. 04, 2021USD ($)individual | Dec. 31, 2020USD ($) | |
Commitments and Contingencies [Line Items] | |||
Purchase Obligation | $ 3,769 | $ 3,769 | |
Accrued potential and legal fees | 17 | 17 | $ 17 |
Insurance reimbursements | 8 | 8 | $ 8 |
Insurance reimbursement of claims potential maximum exposure | 15 | $ 15 | |
Number of birth defect individuals | individual | 18 | ||
Unusual or Infrequent Item, or Both, Insurance Proceeds | 109 | ||
Minimum | |||
Commitments and Contingencies [Line Items] | |||
Range of possible loss | 0 | $ 0 | |
Maximum | |||
Commitments and Contingencies [Line Items] | |||
Range of possible loss | $ 13 | $ 13 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |
Aug. 02, 2021 | Jul. 04, 2021 | Jun. 28, 2020 | |
Subsequent Event [Line Items] | |||
Payments for Repurchase of Common Stock | $ 2,108 | $ 358 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Payments for Repurchase of Common Stock | $ 1,000 | ||
Treasury Stock, Shares, Acquired | 5 |