Cover Document
Cover Document - shares | 3 Months Ended | |
Apr. 03, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2022 | |
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 | 262,564,790 | |
Amendment Flag | false | |
Entity Central Index Key | 0001413447 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 3,136 | $ 2,567 |
Cost of revenue | (1,359) | (1,212) |
Gross profit | 1,777 | 1,355 |
Research and development | (518) | (461) |
Selling, general and administrative | (251) | (222) |
Amortization of acquisition-related intangible assets | (135) | (180) |
Total operating expenses | (904) | (863) |
Other income (expense) | 0 | 0 |
Operating income (loss) | 873 | 492 |
Financial income (expense): | ||
Other financial income (expense) | (105) | (87) |
Income (loss) before income taxes | 768 | 405 |
Benefit (provision) for income taxes | (114) | (40) |
Results relating to equity-accounted investees | 12 | (1) |
Net income (loss) | 666 | 364 |
Less: Net income (loss) attributable to non-controlling interests | 9 | 11 |
Net income (loss) attributable to stockholders | $ 657 | $ 353 |
Earnings per share data: | ||
Basic net income (loss) (in dollars per share) | $ 2.50 | $ 1.27 |
Diluted net income (loss) (in dollars per share) | $ 2.48 | $ 1.25 |
Weighted average number of shares of common stock outstanding during the period (in thousands): | ||
Basic (in shares) | 263,089 | 277,526 |
Diluted (in shares) | 265,109 | 283,263 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 666 | $ 364 |
Other comprehensive income (loss), net of tax: | ||
Change in fair value cash flow hedges | (4) | (14) |
Change in foreign currency translation adjustment | (18) | (42) |
Change in net actuarial gain (loss) | 0 | 0 |
Total other comprehensive income (loss) | (22) | (56) |
Total comprehensive income (loss) | 644 | 308 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 9 | 11 |
Total comprehensive income (loss) attributable to stockholders | $ 635 | $ 297 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) $ in Millions | Apr. 03, 2022USD ($)shares | Dec. 31, 2021USD ($)shares |
Current assets: | ||
Cash and cash equivalents | $ 2,683 | $ 2,830 |
Accounts receivable, net | 925 | 923 |
Inventories, net | 1,311 | 1,189 |
Other current assets | 356 | 286 |
Total current assets | 5,275 | 5,228 |
Non-current assets: | ||
Other non-current assets | 1,701 | 1,346 |
Property, plant and equipment, net of accumulated depreciation of $4,805 and $4,676 | 2,814 | 2,635 |
Identified intangible assets, net of accumulated amortization of $3,059 and $3,021 | 1,577 | 1,694 |
Goodwill | 9,954 | 9,961 |
Total non-current assets | 16,046 | 15,636 |
Total assets | 21,321 | 20,864 |
Current liabilities: | ||
Accounts payable | 1,369 | 1,252 |
Restructuring liabilities-current | 16 | 25 |
Other current liabilities | 1,460 | 1,175 |
Total current liabilities | 2,845 | 2,452 |
Non-current liabilities: | ||
Long-term debt | 10,573 | 10,572 |
Restructuring liabilities | 14 | 12 |
Deferred tax liabilities | 53 | 57 |
Other non-current liabilities | 1,076 | 1,001 |
Total non-current liabilities | 11,716 | 11,642 |
Total liabilities | 14,561 | 14,094 |
Equity: | ||
Non-controlling interests | 251 | 242 |
Stockholders’ equity: | ||
Common stock, par value €0.20 per share: | 56 | 56 |
Capital in excess of par value | $ 13,819 | $ 13,727 |
Treasury shares (in shares) | shares | 11,966,850 | 9,569,359 |
Treasury shares, at cost : 36,518,520 shares (2019: 34,082,242 shares) | $ (2,433) | $ (1,932) |
Accumulated other comprehensive income (loss) | 26 | 48 |
Accumulated deficit | (4,959) | (5,371) |
Total stockholders’ equity | 6,509 | 6,528 |
Total equity | 6,760 | 6,770 |
Total liabilities and equity | $ 21,321 | $ 20,864 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) $ in Millions | Apr. 03, 2022USD ($)shares | Apr. 03, 2022€ / shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2021€ / shares |
Statement of Financial Position [Abstract] | ||||
Accumulated depreciation | $ 4,805 | $ 4,676 | ||
Accumulated amortization | $ (3,059) | $ (3,021) | ||
Common stock, par value (in euros per share) | € / shares | € 0.20 | € 0.20 | ||
Treasury shares (in shares) | shares | 11,966,850 | 9,569,359 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 666 | $ 364 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 310 | 341 |
Share-based compensation | 89 | 91 |
Amortization of discount (premium) on debt, net | 1 | 0 |
Amortization of debt issuance costs | 2 | 2 |
Net (gain) loss on sale of assets | (1) | 0 |
(Gain) loss on equity security, net | (4) | (3) |
Results relating to equity-accounted investees | (12) | 1 |
Deferred tax expense (benefit) | (33) | 12 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in receivables and other current assets | (61) | (95) |
(Increase) decrease in inventories | (122) | (26) |
Increase (decrease) in accounts payable and other liabilities | 266 | 51 |
Decrease (increase) in other non-current assets | (247) | (8) |
Exchange differences | 0 | (1) |
Other items | 2 | 3 |
Net cash provided by (used for) operating activities | 856 | 732 |
Cash flows from investing activities: | ||
Purchase of identified intangible assets | (43) | (37) |
Capital expenditures on property, plant and equipment | (280) | (150) |
Payments to Acquire Equipment on Lease | (5) | 0 |
Proceeds from disposals of property, plant and equipment | 1 | 0 |
Purchase of interests in businesses, net of cash acquired | (4) | 0 |
Purchase of investments | 0 | (2) |
Proceeds from Sale of Other Investments | 0 | 8 |
Proceeds from sale of investments | 2 | 0 |
Net cash provided by (used for) investing activities | (329) | (181) |
Cash flows from financing activities: | ||
Cash paid for debt issuance costs | (1) | 0 |
Dividends paid to common stockholders | (149) | (105) |
Proceeds from issuance of common stock through stock plans | 28 | 31 |
Purchase of treasury shares and restricted stock unit withholdings | (552) | (905) |
Net cash provided by (used for) financing activities | (674) | (979) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | (5) |
Increase (decrease) in cash and cash equivalents | (147) | (433) |
Cash and cash equivalents at beginning of period | 2,830 | 2,275 |
Cash and cash equivalents at end of period | 2,683 | 1,842 |
Net cash paid during the period for: | ||
Interest | 45 | 56 |
Income taxes, net of refunds | 122 | 40 |
Cash proceeds from the sale of assets | 1 | 0 |
Book value of these assets | 0 | 0 |
Non-cash capital expenditures | $ 246 | $ 121 |
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, 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, 2021 | 264,950 | |||||||
Beginning balance at Dec. 31, 2021 | 6,770 | $ 56 | 13,727 | (1,932) | 48 | (5,371) | 6,528 | 242 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 666 | 657 | 657 | 9 | ||||
Other comprehensive income | (22) | (22) | (22) | |||||
Share-based compensation plans | 92 | 92 | 92 | |||||
Shares issued pursuant to stock awards (in shares) | 256 | |||||||
Shares issued pursuant to stock awards | 28 | 51 | (23) | 28 | ||||
Treasury share repurchase and retired (in shares) | (2,653) | |||||||
Treasury shares repurchased and retired | $ (552) | (552) | (552) | |||||
Dividends common stock (in dollars per share) | $ 0.845 | |||||||
Dividends common stock | $ (222) | (222) | (222) | |||||
Balance (in shares) at Apr. 03, 2022 | 262,553 | |||||||
Ending balance at Apr. 03, 2022 | $ 6,760 | $ 56 | $ 13,819 | $ (2,433) | $ 26 | $ (4,959) | $ 6,509 | $ 251 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends common stock (in dollars per share) | $ 0.845 | $ 0.5625 |
Basis of Presentation and Overv
Basis of Presentation and Overview | 3 Months Ended |
Apr. 03, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Overview | Basis of Presentation and Overview We prepared our interim condensed consolidated financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December 31, 2021. 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, 2021. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Recent Accounting Pronouncements | Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies For a discussion of our significant accounting policies see, “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – “Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2021. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended December 31, 2021. Accounting standards recently adopted No 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 Informat
Supplemental Financial Information | 3 Months Ended |
Apr. 03, 2022 | |
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 April 3, 2022 April 4, 2021 Distributors 1,680 1,468 Original Equipment Manufacturers and Electronic Manufacturing Services 1,412 1,064 Other 44 35 Total 3,136 2,567 Depreciation, amortization and impairment For the three months ended April 3, 2022 April 4, 2021 Depreciation of property, plant and equipment 142 132 Amortization of internal use software 2 2 Amortization of other identified intangible assets 1) 166 207 Total - Depreciation, amortization and impairment 310 341 1) For the three month period ending April 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. Financial income and expense For the three months ended April 3, 2022 April 4, 2021 Interest income 2 1 Interest expense (104) (87) Total interest expense, net (102) (86) Foreign exchange rate results — 1 Miscellaneous financing costs/income and other, net (3) (2) Total other financial income/ (expense) (3) (1) Total - Financial income and expenses (105) (87) Earnings per share The computation of earnings per share (EPS) is presented in the following table: For the three months ended April 3, 2022 April 4, 2021 Net income (loss) 666 364 Less: net income (loss) attributable to non-controlling interests 9 11 Net income (loss) attributable to stockholders 657 353 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 263,089 277,526 Plus incremental shares from assumed conversion of: Options 1) 321 416 Restricted Share Units, Performance Share Units and Equity Rights 2) 1,699 5,321 Dilutive potential common shares 2,020 5,737 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 265,109 283,263 EPS attributable to stockholders in $: Basic net income (loss) 2.50 1.27 Diluted net income (loss) 2.48 1.25 1) There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q1 2022 (Q1 2021: no 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 were greater than the weighted average number of shares underlying outstanding stock options. 2) There were 0.2 million unvested RSUs, PSUs and equity rights that were outstanding in Q1 2022 (Q1 2021: no 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 were 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 April 3, 2022 and December 31, 2021, our cash balance was $2,683 million and $2,830 million, respectively, of which $185 million and $208 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. Inventories The portion of finished goods stored at customer locations under consignment amounted to $9 million as of April 3, 2022 (December 31, 2021: $12 million). Inventories are summarized as follows: April 3, 2022 December 31, 2021 Raw materials 118 107 Work in process 974 846 Finished goods 219 236 1,311 1,189 The amounts recorded above are net of allowance for obsolescence of $121 million as of April 3, 2022 (December 31, 2021: $120 million). Equity Investments At April 3, 2022 and December 31, 2021, the total carrying value of investments in equity securities is summarized as follows: April 3, 2022 December 31, 2021 Marketable equity securities 17 18 Non-marketable equity securities 11 19 Equity-accounted investments 89 75 117 112 The total carrying value of investments in equity-accounted investees is summarized as follows: April 3, 2022 December 31, 2021 Shareholding % Amount Shareholding % Amount Wise Road Industry Investment Fund I, L.P. 8.41 % 43 8.41 % 31 Others — 46 — 44 89 75 Results related to equity-accounted investees at the end of each period were as follows: For the three months ended April 3, 2022 April 4, 2021 Company’s share in income (loss) 11 (1) Other results 1 — 12 (1) Other current liabilities Other current liabilities at April 3, 2022 and December 31, 2021 consisted of the following: April 3, 2022 December 31, 2021 Accrued compensation and benefits 537 476 Income taxes payable 100 82 Dividend payable 222 149 Other 601 468 1,460 1,175 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, 2021 207 — (159) 48 Other comprehensive income (loss) before (18) (6) — (24) Amounts reclassified out of accumulated other — 1 — 1 Tax effects — 1 — 1 Other comprehensive income (loss) (18) (4) — (22) As of April 3, 2022 189 (4) (159) 26 Cash dividends The following dividends were declared during the first quarters of 2022 and 2021 under NXP’s quarterly dividend program: Fiscal year 2022 Fiscal year 2021 Dividend per share Amount Dividend per share Amount First quarter 0.845 222 0.5625 155 The dividend declared in the first quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of April 3, 2022 and was subsequently paid on April 6, 2022. |
Restructuring
Restructuring | 3 Months Ended |
Apr. 03, 2022 | |
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 2022: As of January 1, 2022 Additions Utilized Released Other As of April 3, 2022 Restructuring liabilities 37 — (5) (1) (1) 30 There were no restructuring costs incurred for the three month period ended April 3, 2022 and the utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years (April 4, 2021: no restructuring costs incurred). 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 April 3, 2022 April 4, 2021 Cost of revenue — — Research and development (1) — Selling, general and administrative — — Net restructuring charges (1) — |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Benefit/provision for income taxes: For the three months ended April 3, 2022 April 4, 2021 Tax expense (benefit) 114 40 Effective tax rate 14.8 % 9.9 % Our provision for income taxes for the first three months of 2022 was of $114 million (14.8% effective tax rate) compared to a provision from income taxes of $40 million (9.9% effective tax rate) for the first three months of 2021. The increase in the income tax expense was due to higher income before income taxes as a result of the improved operational performance of the company which was partly offset by an increase in tax incentives also taking into account the effect of specific US tax law that became effective as from 2022. In addition to this, in the first three months of 2021 there was an income tax benefit due to changes in estimates of prior positions and due to a net change in the valuation allowance. 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 first quarter of 2022 by $3 million and decreased by $4 million for the first quarter 2021. The benefit of this tax holiday on net income per share (diluted) was $0.01 for the first quarter of 2022 and $0.01 for the first quarter of 2021. |
Identified Intangible Assets
Identified Intangible Assets | 3 Months Ended |
Apr. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | Identified Intangible Assets Identified intangible assets as of April 3, 2022 and December 31, 2021, respectively, were composed of the following: April 3, 2022 December 31, 2021 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 53 — 96 — Marketing-related — — 81 (81) Customer-related 851 (336) 852 (325) Technology-based 3,732 (2,723) 3,686 (2,615) Identified intangible assets 4,636 (3,059) 4,715 (3,021) (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: 2022 (remaining) 457 2023 397 2024 212 2025 113 2026 68 Thereafter 330 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 April 3, 2022 (December 31, 2021: 4 years). |
Debt
Debt | 3 Months Ended |
Apr. 03, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the outstanding debt as of April 3, 2022 and December 31, 2021: April 3, 2022 December 31, 2021 Maturities Amount Interest Amount Interest 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 1,000 2.500 Fixed-rate 2.65% senior unsecured notes Feb, 2032 1,000 2.650 1,000 2.650 Fixed-rate 3.25% senior unsecured notes May, 2041 1,000 3.250 1,000 3.250 Fixed-rate 3.125% senior unsecured notes Feb, 2042 500 3.125 500 3.125 Fixed-rate 3.25% senior unsecured notes Nov, 2051 500 3.250 500 3.250 Floating-rate revolving credit facility (RCF) Jun, 2024 — — — — Total principal 10,650 10,650 Unamortized discounts, premiums and debt (77) (78) Total debt, including unamortized discounts, 10,573 10,572 Current portion of long-term debt — — Long-term debt 10,573 10,572 |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Apr. 03, 2022 | |
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 executive officers 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 April 3, 2022 April 4, 2021 Revenue and other income 3 2 Purchase of goods and services 1 1 The following table presents the amounts related to receivable and payable balances with these related parties: April 3, 2022 December 31, 2021 Receivables 1 1 Payables 3 3 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 03, 2022 | |
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 April 3, 2022 December 31, 2021 Assets: Money market funds 1 1,763 2,111 Marketable equity securities 1 17 18 Derivative instruments-assets 2 9 5 Liabilities: Derivative instruments-liabilities 2 (8) (3) 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 April 3, 2022, the estimated fair value of current and non-current debt was $10.3 billion ($11.3 billion as of December 31, 2021). 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 | 3 Months Ended |
Apr. 03, 2022 | |
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 April 3, 2022, the Company had purchase commitments of $3,925 million, which are due through 2044. Our long-term obligations increased substantially in 2021 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 $61 million accrued for potential and current legal proceedings pending as of April 3, 2022, compared to $65 million accrued at December 31, 2021 (without reduction for any related insurance reimbursements). The accruals are included in “Other current liabilities” and “Other non-current liabilities”. As of April 3, 2022, the Company’s related balance of insurance reimbursements was $45 million (December 31, 2021: $46 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, 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 April 3, 2022, 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 $63 million. Based upon our past experience with these matters, the Company would expect to receive additional insurance reimbursement of up to $49 million on certain of these claims that would partially offset the potential aggregate exposure to loss in excess of the amount accrued. 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 the Circuit Court of Cook County, Illinois. These claims allege a link between working in semiconductor manufacturing clean room facilities and birth defects in 17 individuals. The Motorola suits allege exposures between 1981 and 2006. 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. A portion of any indemnity due to Motorola will be reimbursed to NXP if Motorola receives an indemnification payment from its insurance coverage. Motorola has potential insurance coverage for many of the years indicated above, but with differing types and levels of coverage, self-insurance retention amounts and deductibles. We are in discussions with Motorola and their insurers regarding the availability of applicable insurance coverage for each of the individual cases. Motorola and NXP have denied liability for these alleged injuries based on numerous defenses. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Policies [Abstract] | |
Recently adopted accounting pronouncements | Accounting standards recently adopted No 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) | 3 Months Ended |
Apr. 03, 2022 | |
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 April 3, 2022 April 4, 2021 Distributors 1,680 1,468 Original Equipment Manufacturers and Electronic Manufacturing Services 1,412 1,064 Other 44 35 Total 3,136 2,567 |
Depreciation Amortization And Impairment Charges [Table Text Block] | For the three months ended April 3, 2022 April 4, 2021 Depreciation of property, plant and equipment 142 132 Amortization of internal use software 2 2 Amortization of other identified intangible assets 1) 166 207 Total - Depreciation, amortization and impairment 310 341 |
Schedule of financial income and expense | For the three months ended April 3, 2022 April 4, 2021 Interest income 2 1 Interest expense (104) (87) Total interest expense, net (102) (86) Foreign exchange rate results — 1 Miscellaneous financing costs/income and other, net (3) (2) Total other financial income/ (expense) (3) (1) Total - Financial income and expenses (105) (87) |
Schedule of earnings per share | The computation of earnings per share (EPS) is presented in the following table: For the three months ended April 3, 2022 April 4, 2021 Net income (loss) 666 364 Less: net income (loss) attributable to non-controlling interests 9 11 Net income (loss) attributable to stockholders 657 353 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 263,089 277,526 Plus incremental shares from assumed conversion of: Options 1) 321 416 Restricted Share Units, Performance Share Units and Equity Rights 2) 1,699 5,321 Dilutive potential common shares 2,020 5,737 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 265,109 283,263 EPS attributable to stockholders in $: Basic net income (loss) 2.50 1.27 Diluted net income (loss) 2.48 1.25 1) There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q1 2022 (Q1 2021: no 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 were greater than the weighted average number of shares underlying outstanding stock options. 2) There were 0.2 million unvested RSUs, PSUs and equity rights that were outstanding in Q1 2022 (Q1 2021: no 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 were 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: April 3, 2022 December 31, 2021 Raw materials 118 107 Work in process 974 846 Finished goods 219 236 1,311 1,189 |
Marketable Securities | At April 3, 2022 and December 31, 2021, the total carrying value of investments in equity securities is summarized as follows: April 3, 2022 December 31, 2021 Marketable equity securities 17 18 Non-marketable equity securities 11 19 Equity-accounted investments 89 75 117 112 |
Summary of Carrying Value of Investments in Equity-Accounted Investees | The total carrying value of investments in equity-accounted investees is summarized as follows: April 3, 2022 December 31, 2021 Shareholding % Amount Shareholding % Amount Wise Road Industry Investment Fund I, L.P. 8.41 % 43 8.41 % 31 Others — 46 — 44 89 75 |
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 April 3, 2022 April 4, 2021 Company’s share in income (loss) 11 (1) Other results 1 — 12 (1) |
Other Current Liabilities | Other current liabilities at April 3, 2022 and December 31, 2021 consisted of the following: April 3, 2022 December 31, 2021 Accrued compensation and benefits 537 476 Income taxes payable 100 82 Dividend payable 222 149 Other 601 468 1,460 1,175 |
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, 2021 207 — (159) 48 Other comprehensive income (loss) before (18) (6) — (24) Amounts reclassified out of accumulated other — 1 — 1 Tax effects — 1 — 1 Other comprehensive income (loss) (18) (4) — (22) As of April 3, 2022 189 (4) (159) 26 |
Schedule of cash dividends | The following dividends were declared during the first quarters of 2022 and 2021 under NXP’s quarterly dividend program: Fiscal year 2022 Fiscal year 2021 Dividend per share Amount Dividend per share Amount First quarter 0.845 222 0.5625 155 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table presents the changes in restructuring liabilities in 2022: As of January 1, 2022 Additions Utilized Released Other As of April 3, 2022 Restructuring liabilities 37 — (5) (1) (1) 30 For the three months ended April 3, 2022 April 4, 2021 Cost of revenue — — Research and development (1) — Selling, general and administrative — — Net restructuring charges (1) — |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefits) and Effective Tax Rates | Benefit/provision for income taxes: For the three months ended April 3, 2022 April 4, 2021 Tax expense (benefit) 114 40 Effective tax rate 14.8 % 9.9 % |
Identified Intangible Assets (T
Identified Intangible Assets (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identified Intangible Assets | Identified intangible assets as of April 3, 2022 and December 31, 2021, respectively, were composed of the following: April 3, 2022 December 31, 2021 Gross carrying Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 53 — 96 — Marketing-related — — 81 (81) Customer-related 851 (336) 852 (325) Technology-based 3,732 (2,723) 3,686 (2,615) Identified intangible assets 4,636 (3,059) 4,715 (3,021) (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: 2022 (remaining) 457 2023 397 2024 212 2025 113 2026 68 Thereafter 330 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the outstanding debt as of April 3, 2022 and December 31, 2021: April 3, 2022 December 31, 2021 Maturities Amount Interest Amount Interest 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 1,000 2.500 Fixed-rate 2.65% senior unsecured notes Feb, 2032 1,000 2.650 1,000 2.650 Fixed-rate 3.25% senior unsecured notes May, 2041 1,000 3.250 1,000 3.250 Fixed-rate 3.125% senior unsecured notes Feb, 2042 500 3.125 500 3.125 Fixed-rate 3.25% senior unsecured notes Nov, 2051 500 3.250 500 3.250 Floating-rate revolving credit facility (RCF) Jun, 2024 — — — — Total principal 10,650 10,650 Unamortized discounts, premiums and debt (77) (78) Total debt, including unamortized discounts, 10,573 10,572 Current portion of long-term debt — — Long-term debt 10,573 10,572 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
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 April 3, 2022 April 4, 2021 Revenue and other income 3 2 Purchase of goods and services 1 1 |
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: April 3, 2022 December 31, 2021 Receivables 1 1 Payables 3 3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
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 April 3, 2022 December 31, 2021 Assets: Money market funds 1 1,763 2,111 Marketable equity securities 1 17 18 Derivative instruments-assets 2 9 5 Liabilities: Derivative instruments-liabilities 2 (8) (3) |
Acquisitions and Divestments (D
Acquisitions and Divestments (Details) $ in Millions | Jul. 06, 2021USD ($) | Apr. 03, 2022business |
Business Acquisition [Line Items] | ||
Number of businesses acquired | 0 | |
Number of businesses divested | 0 | |
Retune DSP | ||
Business Acquisition [Line Items] | ||
Payment to acquire business unit | $ | $ 15.7 |
Supplemental Financial Inform_3
Supplemental Financial Information - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,136 | $ 2,567 |
Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,680 | 1,468 |
Original Equipment Manufacturers and Electronic Manufacturing Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,412 | 1,064 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 44 | $ 35 |
Supplemental Financial Inform_4
Supplemental Financial Information - Depreciation, amortization and impairment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Depreciation of property, plant and equipment | $ 142 | $ 132 |
Total - Depreciation, amortization and impairment | 310 | 341 |
Internal Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 2 | 2 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 166 | 207 |
Other Intangible Assets | Marvell | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 36 |
Supplemental Financial Inform_5
Supplemental Financial Information - Financial income and expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest income | $ 2 | $ 1 |
Interest expense | (104) | (87) |
Total interest expense, net | (102) | (86) |
Foreign exchange rate results | 0 | 1 |
Miscellaneous financing costs/income and other, net | (3) | (2) |
Total other financial income/ (expense) | (3) | (1) |
Total - Financial income and expenses | $ (105) | $ (87) |
Supplemental Financial Inform_6
Supplemental Financial Information - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) | $ 666 | $ 364 |
Less: Net income (loss) attributable to non-controlling interests | 9 | 11 |
Net income (loss) attributable to stockholders | $ 657 | $ 353 |
Basic (in shares) | 263,089 | 277,526 |
Options (in shares) | 321 | 416 |
Restricted Share Units, Performance Share Units and Equity Rights (in shares) | 1,699 | 5,321 |
Dilutive potential common shares (in shares) | 2,020 | 5,737 |
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares) | 265,109 | 283,263 |
Basic net income (loss) (in dollars per share) | $ 2.50 | $ 1.27 |
Diluted net income (loss) (in dollars per share) | $ 2.48 | $ 1.25 |
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 | 0 |
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) | 200 | 0 |
Supplemental Financial Inform_7
Supplemental Financial Information - Cash and cash equivalents (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 2,683 | $ 2,830 |
SSMC | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 185 | $ 208 |
SSMC | TSMC | ||
Cash and Cash Equivalents [Line Items] | ||
Ownership percentage by noncontrolling owners | 38.80% |
Supplemental Financial Inform_8
Supplemental Financial Information - Inventories (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods under consignment | $ 9 | $ 12 |
Raw materials | 118 | 107 |
Work in process | 974 | 846 |
Finished goods | 219 | 236 |
Inventory, Net | 1,311 | 1,189 |
Allowance for obsolescence | $ 121 | $ 120 |
Supplemental Financial Inform_9
Supplemental Financial Information (Details) - Equity investments - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Marketable equity securities | $ 17 | $ 18 |
Other Investments | 11 | 19 |
Equity Method Investments | 89 | 75 |
Investments | $ 117 | $ 112 |
Supplemental Financial Infor_10
Supplemental Financial Information - Other current liabilities (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 | Oct. 03, 2021 | Sep. 27, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accrued Employee Benefits, Current | $ 537 | $ 476 | ||
Taxes Payable, Current | 100 | 82 | ||
Dividends Payable | 222 | 149 | $ 222 | $ 155 |
Other Accrued Liabilities, Current | 601 | 468 | ||
Other current liabilities | $ 1,460 | $ 1,175 |
Supplemental Financial Infor_11
Supplemental Financial Information - Accumulated other comprehensive income (loss) (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 6,770 |
Other comprehensive income (loss) before reclassifications | (24) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 1 |
Other comprehensive income (loss) | 1 |
Other comprehensive income (loss) | (22) |
Ending balance | 6,760 |
Currency translation differences | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 207 |
Other comprehensive income (loss) before reclassifications | (18) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | (18) |
Ending balance | 189 |
Change in fair value cash flow hedges | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Other comprehensive income (loss) before reclassifications | (6) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 1 |
Other comprehensive income (loss) | 1 |
Other comprehensive income (loss) | (4) |
Ending balance | (4) |
Net actuarial gain/(losses) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (159) |
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 | (159) |
Accumulated other comprehensive income (loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 48 |
Ending balance | $ 26 |
Supplemental Financial Infor_12
Supplemental Financial Information - Cash dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Apr. 03, 2022 | Apr. 04, 2021 | Dec. 31, 2021 | Oct. 03, 2021 | Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Dividends common stock (in dollars per share) | $ 0.845 | $ 0.5625 | |||
Dividends Payable | $ 222 | $ 149 | $ 222 | $ 155 |
Supplemental Financial Infor_13
Supplemental Financial Information - Summary of carrying value of investments in equity-accounted investees (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 89 | $ 75 |
Wiseroad | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 8.41% | 8.41% |
Equity Method Investments | $ 43 | $ 31 |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 0.00% | 0.00% |
Equity Method Investments | $ 46 | $ 44 |
Supplemental Financial Infor_14
Supplemental Financial Information - Results relating to equity-accounted investees (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Income Loss from Equity Method Investments Before Extraordinary Items | $ 11 | $ (1) |
Extraordinary Income Loss From Equity Method Investments | 1 | 0 |
Income (Loss) from Equity Method Investments | $ 12 | $ (1) |
Restructuring - Change in Restr
Restructuring - Change in Restructuring Reserve (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability, beginning balance | $ 37 |
Additions | 0 |
Utilized | (5) |
Released | (1) |
Other changes | (1) |
Restructuring liability, ending balance | $ 30 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ (1) | $ 0 |
Personnel lay-off costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 0 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges Recorded in Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Net restructuring charges | $ (1) | $ 0 |
Cost of revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Net restructuring charges | 0 | 0 |
Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Net restructuring charges | (1) | 0 |
Selling, general and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Net restructuring charges | $ 0 | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefits) and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Tax Disclosure [Abstract] | ||
Tax expense (benefit) | $ 114 | $ 40 |
Effective tax rate | 14.80% | 9.90% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Tax Disclosure [Abstract] | ||
Tax expense (benefit) | $ 114 | $ 40 |
Effective tax rate | 14.80% | 9.90% |
Foreign income tax change due to impact of tax holiday | $ 3 | $ 4 |
Income tax holiday (in dollars per share) | $ 0.01 | $ 0.01 |
Identified Intangible Assets -
Identified Intangible Assets - Summary of Identified Intangible Assets (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 4,636 | $ 4,715 |
Finite-lived intangible assets, accumulated amortization | (3,059) | (3,021) |
Marketing-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 0 | 81 |
Finite-lived intangible assets, accumulated amortization | 0 | (81) |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 851 | 852 |
Finite-lived intangible assets, accumulated amortization | (336) | (325) |
Technology-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 3,732 | 3,686 |
Finite-lived intangible assets, accumulated amortization | (2,723) | (2,615) |
In-process R&D (IPR&D) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | $ 53 | $ 96 |
Identified Intangible Assets _2
Identified Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Other Intangible Assets $ in Millions | Apr. 03, 2022USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 457 |
2023 | 397 |
2024 | 212 |
2025 | 113 |
2026 | 68 |
Thereafter | $ 330 |
Identified Intangible Assets _3
Identified Intangible Assets - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Apr. 03, 2022 | Dec. 31, 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 | Apr. 03, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 10,650 | $ 10,650 |
Unamortized discounts, premiums and debt issuance costs | (77) | (78) |
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments | 10,573 | 10,572 |
Current portion of long-term debt | 0 | 0 |
Long-term debt | 10,573 | 10,572 |
Unsecured Debt | Fixed-rate 4.625% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 900 | $ 900 |
Debt Instrument, Interest Rate, Stated 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, Stated 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, Stated 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, Stated 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, Stated 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, Stated 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, Stated 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, Stated 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, Stated Percentage | 3.40% | 3.40% |
Unsecured Debt | Fixed-Rate 2.5% Senior Unsecured Notes, Maturing May 2031 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% |
Unsecured Debt | Fixed-Rate 3.25% Senior Unsecured Notes, Maturing May 2041 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Effective Percentage | 3.25% | |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |
Unsecured Debt | Fixed-Rate 2.65% Senior Unsecured Notes, Maturing February 2032 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | 2.65% |
Unsecured Debt | Fixed-Rate 3.125% Senior Unsecured Notes, Maturing February 2042 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% |
Unsecured Debt | Fixed-Rate 3.25% Senior Unsecured Notes, Maturing November 2051 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 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, Stated 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 | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Related Party Transactions [Abstract] | ||
Revenue and other income | $ 3 | $ 2 |
Purchase of goods and services | $ 1 | $ 1 |
Related-Party Transactions - _2
Related-Party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Receivables | $ 1 | $ 1 |
Payables | $ 3 | $ 3 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Assets: | ||
Marketable equity securities | $ 17 | $ 18 |
Estimate of Fair Value Measurement | Level 1 | ||
Assets: | ||
Marketable equity securities | 17 | 18 |
Estimate of Fair Value Measurement | Level 2 | ||
Assets: | ||
Derivative instruments-assets | 9 | 5 |
Liabilities: | ||
Derivative instruments-liabilities | (8) | (3) |
Estimate of Fair Value Measurement | Money market funds | Level 1 | ||
Assets: | ||
Money market funds | $ 1,763 | $ 2,111 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 10,573 | $ 10,572 |
Level 2 | Estimate of Fair Value Measurement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 10,300 | $ 11,300 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | |
Apr. 03, 2022USD ($)individual | Dec. 31, 2021USD ($) | |
Commitments and Contingencies [Line Items] | ||
Purchase Obligation | $ 3,925 | |
Accrued potential and legal fees | 61 | $ 65 |
Insurance reimbursements | 45 | $ 46 |
Insurance reimbursement of claims potential maximum exposure | $ 49 | |
Number of birth defect individuals | individual | 17 | |
Minimum | ||
Commitments and Contingencies [Line Items] | ||
Range of possible loss | $ 0 | |
Maximum | ||
Commitments and Contingencies [Line Items] | ||
Range of possible loss | $ 63 |