Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jul. 01, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 38.4 | ||
Entity Common Stock, Shares Outstanding | 259,519,410 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement relating to its 2023 Annual General Meeting of shareholders (the “2023 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001413447 | ||
Current Fiscal Year End Date | --12-31 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1396 |
Auditor Name | Ernst & Young Accountants LLP |
Auditor Location | Eindhoven, the Netherlands |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 13,205 | $ 11,063 | $ 8,612 |
Cost of revenue | (5,688) | (4,996) | (4,377) |
Gross profit | 7,517 | 6,067 | 4,235 |
Research and development | (2,148) | (1,936) | (1,725) |
Selling, general and administrative | (1,066) | (956) | (879) |
Amortization of acquisition-related intangible assets | (509) | (592) | (1,327) |
Total operating expenses | (3,723) | (3,484) | (3,931) |
Other income (expense) | 3 | 0 | 114 |
Operating income (loss) | 3,797 | 2,583 | 418 |
Financial income (expense): | |||
Extinguishment of debt | (18) | (22) | (60) |
Other financial income (expense) | (416) | (381) | (357) |
Income (loss) before income taxes | 3,363 | 2,180 | 1 |
Benefit (provision) for income taxes | (529) | (272) | 83 |
Results relating to equity-accounted investees | (1) | (2) | (4) |
Net income (loss) | 2,833 | 1,906 | 80 |
Less: Net income (loss) attributable to non-controlling interests | 46 | 35 | 28 |
Net income (loss) attributable to stockholders | $ 2,787 | $ 1,871 | $ 52 |
Earnings per share data: | |||
Basic (in dollars per share) | $ 10.64 | $ 6.91 | $ 0.19 |
Diluted (in dollars per share) | $ 10.55 | $ 6.79 | $ 0.18 |
Weighted average number of shares of common stock outstanding during the year (in thousands): | |||
Basic (in shares) | 261,879 | 270,687 | 279,763 |
Diluted (in shares) | 264,053 | 275,646 | 283,809 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 2,833 | $ 1,906 | $ 80 |
Other comprehensive income (loss), net of tax: | |||
Change in fair value cash flow hedges * | (1) | (11) | |
Change in fair value cash flow hedges * | 9 | ||
Change in foreign currency translation adjustment | (72) | (74) | 78 |
Change in net actuarial gain (loss) | 101 | 16 | (45) |
Total other comprehensive income (loss) | 28 | (69) | 42 |
Total comprehensive income (loss) | 2,861 | 1,837 | 122 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 46 | 35 | 28 |
Total comprehensive income (loss) attributable to stockholders | $ 2,815 | $ 1,802 | $ 94 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS € in Millions, $ in Millions | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 EUR (€) € / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2021 EUR (€) € / shares shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 USD ($) shares |
Current assets: | ||||||
Cash and cash equivalents | $ 3,845 | $ 2,830 | ||||
Accounts receivables, net | 960 | 923 | ||||
Inventories, net | 1,782 | 1,189 | ||||
Other current assets | 348 | 286 | ||||
Total current assets | 6,935 | 5,228 | ||||
Non-current assets: | ||||||
Other non-current assets | 1,942 | 1,346 | ||||
Property, Plant and Equipment, Net | 3,105 | 2,635 | $ 2,284 | |||
Identified intangible assets, net | 1,311 | 1,694 | 2,242 | |||
Goodwill | 9,943 | 9,961 | 9,984 | |||
Total non-current assets | 16,301 | 15,636 | ||||
Total assets | 23,236 | 20,864 | ||||
Current liabilities: | ||||||
Restructuring Reserve, Current | 19 | 25 | ||||
Other current liabilities | 1,634 | 1,175 | ||||
Total current liabilities | 3,270 | 2,452 | ||||
Non-current liabilities: | ||||||
Long-term debt | 11,165 | 10,572 | ||||
Restructuring Reserve, Noncurrent | 1 | 12 | ||||
Deferred tax liabilities | 45 | 57 | ||||
Other non-current liabilities | 1,015 | 1,001 | ||||
Total non-current liabilities | 12,226 | 11,642 | ||||
Equity: | ||||||
Non-controlling interests | 291 | 242 | ||||
Stockholders’ equity: | ||||||
Common stock, par value €0.20 per share:, Authorized 430,503,000 shares (2018: 430,503,000 shares) Issued and fully paid: 315,519,638 shares (2018: 328,702,719 shares) | 56 | € 55 | 56 | € 55 | ||
Capital in excess of par value | 14,091 | 13,727 | ||||
Treasury shares, at cost: 15,056,232 shares (2021: 9,569,359 shares) | (2,799) | (1,932) | (1,037) | $ (3,037) | ||
Accumulated other comprehensive income (loss) | 76 | 48 | ||||
Accumulated deficit | (3,975) | (5,371) | ||||
Total Stockholders’ equity | 7,449 | 6,528 | ||||
Total equity | 7,740 | 6,770 | $ 9,151 | $ 9,655 | ||
Total liabilities and equity | 23,236 | 20,864 | ||||
Accounts payable | $ 1,617 | $ 1,252 | ||||
Preferred stock, par value per share (in euros per share) | € / shares | € 0.20 | € 0.20 | ||||
Preferred stock, authorized shares (in shares) | shares | 645,754,500 | 645,754,500 | 645,754,500 | 645,754,500 | ||
Preferred stock, issued (in shares) | shares | 0 | 0 | 0 | 0 | ||
Common Stock, Par or Stated Value Per Share | € / shares | € 0.20 | € 0.20 | ||||
Common Stock, authorized shares (in shares) | shares | 430,503,000 | 430,503,000 | 430,503,000 | 430,503,000 | ||
Common stock, issued and fully paid (in shares) | shares | 274,519,638 | 274,519,638 | 274,519,638 | 274,519,638 | 274,519,638 | |
Treasury shares (in shares) | shares | 15,056,232 | 15,056,232 | 9,569,359 | 9,569,359 | 9,044,952 | 34,082,242 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||||
Preferred stock, par value per share (in euros per share) | € 0.20 | € 0.20 | ||
Preferred stock, authorized shares (in shares) | 645,754,500 | 645,754,500 | ||
Preferred stock, issued (in shares) | 0 | 0 | ||
Common stock, par value (in euros per share) | € 0.20 | € 0.20 | ||
Common stock, authorized shares (in shares) | 430,503,000 | 430,503,000 | ||
Common stock, issued and fully paid (in shares) | 274,519,638 | 274,519,638 | 274,519,638 | |
Treasury shares (in shares) | 15,056,232 | 9,569,359 | 9,044,952 | 34,082,242 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 2,833 | $ 1,906 | $ 80 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 1,250 | 1,262 | 1,988 |
Share-based compensation | 364 | 353 | 384 |
Amortization of discount (premium) on debt, net | 2 | 1 | (1) |
Amortization of debt issuance costs | 7 | 7 | 9 |
Net (gain) loss on sale of assets | 0 | (1) | (115) |
(Gain) loss on extinguishment of debt | 18 | 22 | 60 |
Results relating to equity-accounted investees | 1 | 2 | 4 |
(Gain) loss on equity securities, net | 4 | 2 | (21) |
Deferred tax expense (benefit) | (236) | (20) | (349) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables and other current assets | (106) | (176) | (51) |
(Increase) decrease in inventories | (593) | (159) | 163 |
Increase (decrease) in accounts payable and accrued liabilities | 633 | 248 | 319 |
Decrease (increase) in other non-current assets | (306) | (350) | 7 |
Exchange differences | 17 | (5) | 16 |
Other items | 7 | (15) | (11) |
Net cash provided by (used for) operating activities | 3,895 | 3,077 | 2,482 |
Cash flows from investing activities: | |||
Purchase of identified intangible assets | (159) | (132) | (130) |
Capital expenditures on property, plant and equipment | (1,063) | (767) | (392) |
Payments to Acquire Equipment on Lease | (5) | (33) | 0 |
Proceeds from Insurance Settlement, Investing Activities | 0 | 10 | 0 |
Proceeds from disposals of property, plant and equipment | 2 | 1 | 4 |
Purchase of interests in businesses, net of cash acquired | (27) | (23) | (34) |
Proceeds from sale of interests in businesses, net of cash divested | 0 | 0 | 161 |
Purchase of investments | (20) | (8) | (30) |
Proceeds from the sale of investments | 13 | 8 | 2 |
Proceeds from return of equity investments | 10 | 10 | 1 |
Net cash provided by (used for) investing activities | (1,249) | (934) | (418) |
Cash flows from financing activities: | |||
Repurchase of long-term debt | (917) | (1,021) | (1,809) |
Proceeds from the issuance of long-term debt | 1,496 | 4,000 | 2,000 |
Cash paid for debt issuance costs | (14) | (47) | (15) |
Dividends paid to non-controlling interests | 0 | 0 | (35) |
Dividends paid to common stockholders | (815) | (562) | (420) |
Proceeds from issuance of common stock through stock plans | 59 | 62 | 72 |
Purchase of treasury shares and restricted stock unit withholdings | (1,426) | (4,015) | (627) |
Cash paid on behalf of shareholders for tax on repurchased shares | 0 | 0 | 0 |
Other, net | (2) | (2) | (1) |
Net cash provided by (used for) financing activities | (1,619) | (1,585) | (835) |
Effect of changes in exchange rates on cash positions | (12) | (3) | 1 |
Increase (decrease) in cash and cash equivalents | 1,015 | 555 | 1,230 |
Cash and cash equivalents at beginning of period | 2,830 | 2,275 | 1,045 |
Cash and cash equivalents at end of period | 3,845 | 2,830 | 2,275 |
Net cash paid during the period for: | |||
Interest | 323 | 356 | 336 |
Income taxes, net of refunds | 558 | 353 | 148 |
Cash proceeds from the sale of assets | 2 | 1 | 165 |
Book value of these assets | (2) | 0 | (50) |
Non-cash capital expenditures | $ 232 | $ 243 | $ 119 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Capital in excess of par value | Treasury shares at cost | Accumulated Other Comprehensive Income (loss) | Accumulated deficit | Total stockholders’ equity | Non- controlling interests |
Beginning balance (in shares) 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) | 80 | 52 | 52 | 28 | ||||
Other comprehensive income | 42 | 42 | 42 | |||||
Share-based compensation plans | 384 | 384 | 384 | |||||
Shares issued pursuant to stock awards (in shares) | 3,867 | |||||||
Shares issued pursuant to stock awards | 72 | 364 | (292) | 72 | ||||
Treasury shares repurchased and retired (in shares) | 4,829 | |||||||
Treasury shares repurchased and retired | (627) | $ (5) | (1,267) | 1,636 | (991) | (627) | ||
Expiration of stock purchase warrants | 0 | (168) | 168 | 0 | ||||
Dividends non-controlling interests | (35) | 0 | (35) | |||||
Dividends common stock | (420) | (420) | (420) | |||||
Ending balance (in shares) at Dec. 31, 2020 | 280,475 | |||||||
Ending 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) | 1,906 | 1,871 | 1,871 | 35 | ||||
Other comprehensive income | (69) | (69) | (69) | |||||
Share-based compensation plans | 341 | 341 | 341 | |||||
Shares issued pursuant to stock awards (in shares) | 5,104 | |||||||
Shares issued pursuant to stock awards | 62 | 525 | (463) | 62 | ||||
Treasury shares repurchased and retired (in shares) | 20,629 | |||||||
Treasury shares repurchased and retired | (4,015) | $ (3) | (747) | (1,420) | (1,845) | (4,015) | ||
Dividends common stock | (606) | (606) | (606) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 264,950 | |||||||
Ending 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) | 2,833 | 2,787 | 2,787 | 46 | ||||
Other comprehensive income | 28 | 28 | 28 | |||||
Share-based compensation plans | 364 | 364 | 364 | |||||
Shares issued pursuant to stock awards (in shares) | 2,843 | |||||||
Shares issued pursuant to stock awards | 59 | 562 | (503) | 59 | ||||
Treasury shares repurchased and retired (in shares) | 8,330 | |||||||
Treasury shares repurchased and retired | (1,429) | (1,429) | (1,429) | |||||
Noncontrolling Interest, Increase From Change In Participation | 0 | (3) | (3) | 3 | ||||
Dividends common stock | (885) | (885) | (885) | |||||
Ending balance (in shares) at Dec. 31, 2022 | 259,463 | |||||||
Ending balance at Dec. 31, 2022 | $ 7,740 | $ 56 | $ 14,091 | $ (2,799) | $ 76 | $ (3,975) | $ 7,449 | $ 291 |
Other Financial Instruments, De
Other Financial Instruments, Derivatives and Currency Risk | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Other Financial Instruments, Derivatives and Currency Risk | Other Financial Instruments, Derivatives and Currency Risk We conduct business in diverse markets around the world and employ a variety of risk management strategies and techniques to manage foreign currency exchange rate and interest rate risks. Our risk management program focuses on the unpredictability of financial markets and seeks to minimize the potentially adverse effects that the volatility of these markets may have on our operating results. One way we achieve this is through the active hedging of risks through the selective use of derivative instruments. Derivatives are recorded on our Consolidated Balance Sheets at fair value which fluctuates based on changing market conditions. The Company does not purchase or hold financial derivative instruments for trading purposes. |
Basis of Presentation and Overv
Basis of Presentation and Overview | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Overview | Basis of Presentation and Overview The Consolidated Financial Statements include the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. Net income (loss) includes the portion of the earnings of subsidiaries applicable to non-controlling interests. The income (loss) and equity attributable to non-controlling interests are disclosed separately in the Consolidated Statements of Operations and in the Consolidated Balance Sheets under non-controlling interests. We have reclassified certain prior period amounts to conform to current period presentation. Segment reporting NXP has one reportable segment representing the entity as a whole and reflects the way in which our chief operating decision maker executes operating decisions, allocates resources, and manages the growth and profitability of the Company. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Revenue recognition The Company recognizes revenue under the core principle to depict the transfer of control to customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The vast majority of the Company’s revenue is derived from the sale of semiconductor products to distributors, Original Equipment Manufacturers (“OEMs”) and similar customers. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the consideration to which the Company expects to be entitled. Variable consideration is estimated and includes the impact of discounts, price protection, product returns and distributor incentive programs. The estimate of variable consideration is dependent on a variety of factors, including contractual terms, analysis of historical data, current economic conditions, industry demand and both the current and forecasted pricing environments. The process of evaluating these factors is subjective and requires estimates including, but not limited to, forecasted demand, returns, pricing assumptions and inventory levels. The estimate of variable consideration is not constrained because the Company has extensive experience with these contracts. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment. In determining whether control has transferred, the Company considers if there is a present right to payment and legal title, and whether risks and rewards of ownership having transferred to the customer. The Company applies the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. The Company applies the practical expedient to expense sales commissions when incurred because the amortization period would have been one year or less. For sales to distributors, revenue is recognized upon transfer of control to the distributor. For some distributors, contractual arrangements are in place which allow these distributors to return products if certain conditions are met. These conditions generally relate to the time period during which a return is allowed and reflect customary conditions in the particular geographic market. Other return conditions relate to circumstances arising at the end of a product life cycle, when certain distributors are permitted to return products purchased during a pre-defined period after the Company has announced a product’s pending discontinuance. These return rights are a form of variable consideration and are estimated using the most likely method based on historical return rates in order to reduce revenues recognized. However, long notice periods associated with these announcements prevent significant amounts of product from being returned. For sales where return rights exist, the Company has determined, based on historical data, that only a very small percentage of the sales of this type to distributors is actually returned. Repurchase agreements with OEMs or distributors are not entered into by the Company. Sales to most distributors are made under programs common in the semiconductor industry whereby distributors receive certain price adjustments to meet individual competitive opportunities. These programs may include credits granted to distributors, or allow distributors to return or scrap a limited amount of product in accordance with contractual terms agreed upon with the distributor, or receive price protection credits when our standard published prices are lowered from the price the distributor paid for product still in its inventory. In determining the transaction price, the Company considers the price adjustments from these programs to be variable consideration that reduce the amount of revenue recognized. The Company’s policy is to estimate such price adjustments using the most likely method based on rolling historical experience rates, as well as a prospective view of products and pricing in the distribution channel for distributors who participate in our volume rebate incentive program. We continually monitor the actual claimed allowances against our estimates, and we adjust our estimates as appropriate to reflect trends in pricing environments and inventory levels. The estimates are also adjusted when recent historical data does not represent anticipated future activity. Historically, actual price adjustments for these programs relative to those estimated have not materially differed. Cash and cash equivalents Cash and cash equivalents include all cash balances and short-term highly liquid investments with a maturity of three months or less at acquisition that are readily convertible into known amounts of cash. Cash and cash equivalents are stated at face value which approximates fair value. Receivables Receivables are carried at amortized cost, net of allowances for credit loss and net of rebates and other contingent discounts granted to distributors. When circumstances indicate a specific customer’s ability to meet its financial obligation to us is impaired, we record an allowance against amounts due and value the receivable at the amount reasonably expected to be collected. For all other customers, we evaluate our trade accounts receivable risk of credit loss based on numerous factors including historical loss rates, credit-risk concentration, and specific circumstances such as serious adverse economic conditions in a specific country or region. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first-in, first-out (FIFO) method. An allowance is made for the estimated losses due to obsolescence. This allowance is determined for groups of products based on purchases in the recent past and/or expected future demand and market conditions. Abnormal amounts of idle facility expense and waste are not capitalized in inventory. The allocation of fixed production overheads to the inventory cost is based on the normal capacity of the production facilities. Government assistance Government grants, other than those relating to purchases of assets, are recognized as a reduction of expenditure as qualified expenditures are made. Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. Government investment grants are deducted from the cost of the related asset. Depreciation is calculated using the straight-line method over the expected economic life of the asset. Depreciation of special tooling is also based on the straight-line method unless a depreciation method other than the straight-line method better represents the consumption pattern. Gains and losses on the sale of property, plant and equipment are included in other income and expense. Plant and equipment under finance leases Leases We determine if an arrangement is a lease at inception of the arrangement. Once it is determined that an arrangement is, or contains, a lease, that determination should only be reassessed if the legal arrangement is modified. Changes to assumptions such as market-based factors do not trigger a reassessment. Determining whether a contract contains a lease requires judgement. In general, arrangements are considered to be a lease when all of the following apply: – It conveys the right to control the use of an identified asset for a period of time in exchange for consideration; – We have substantially all economic benefits from the use of the asset; and – We can direct the use of the identified asset The terms of a lease arrangement determine how a lease is classified and the resulting income statement recognition. When the terms of a lease effectively transfer control of the underlying asset, the lease represents an in substance financed purchase (sale) of an asset and the lease is classified as a finance lease by the lessee and a sales-type lease by the lessor. When a lease does not effectively transfer control of the underlying asset to the lessee, but the lessor obtains a guarantee for the value of the asset from a third party, the lessor would classify a lease as a direct financing lease. All other leases are classified as operating leases. With the exception of seven instances (with a combined value of $64 million), the Company’s lease arrangements are all operating leases. Lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at January 1, 2019, the date of the adoption of ASC 842, or commencement date, if later, in determining the present value of future payments. The lease payments that are included in the lease liability are comprised of fixed payments (including in-substance fixed payments), less any lease incentives receivable; variable lease payments that depend on an index or rate; amounts expected to be payable by the lessee under residual value guarantees; the exercise price of a purchase option that the lessee is reasonably certain to exercise; and payments for terminating the lease unless it is reasonably certain that early termination will not occur. The lease ROU asset includes any lease payment made and initial direct costs incurred. Our lease terms include the non-cancelable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and the periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise the option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For finance leases each lease payment is allocated between the liability and finance cost. The finance cost is charged to the consolidated statement of operations over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The finance lease asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. We have lease agreements with lease and non-lease components. Except for gas and chemical contracts, NXP did not make the election to treat the lease and non-lease components as a single component, and considers the non-lease components as a separate unit of account. Equity investments NXP’s equity investments include equity method investments, marketable equity investments and non-marketable equity investments. Equity method investments: NXP’s investments over which it has significant influence, but not control are accounted for using the equity method. Under the equity method, the investment is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the NXP’s share of net assets of the equity accounted investee since the acquisition date. NXP’s share of the results of operations of the equity accounted investees are recognized in ‘Results relating to equity-accounted investees’. Marketable equity investments: all equity investments with a readily determinable fair value, other than equity-method investments, in unconsolidated entities are measured at fair value through earnings in the statement of operations on a recurring basis. We classify marketable securities as current or non-current based on the nature of the securities and their availability for use in current operations. Gains and losses on investments in marketable equity securities, realized and unrealized, are recognized in ‘Financial income (expense)’. Non-marketable equity investments: all equity investments without a readily determinable fair value, other than equity-method investments, in unconsolidated entities are recorded at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar securities. All gains and losses on investments in non-marketable equity investments, realized and unrealized, are recognized in ‘Financial income (expense)’. We monitor our equity method investments and non-marketable equity securities for events or changes in circumstances which may indicate the investments are impaired. If an assessment indicates an investment is impaired, we recognize a charge for the difference between the estimated fair value and the carrying value. For equity method investments, we record impairment losses in earnings only when impairments are considered other-than-temporary. Business combinations We allocate the purchase price paid for assets acquired and liabilities assumed in connection with our acquisitions based on their estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates and judgments that could materially affect the timing or amounts recognized in our financial statements. Significant judgment is required in estimating the fair value of acquired intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, and our assumed market segment share, as well as the estimated useful life of intangible assets. Further judgment is required in estimating the fair values of deferred tax assets and liabilities, uncertain tax positions and tax-related valuation allowances, which are initially estimated as of the acquisition date, as well as inventory, property, plant and equipment, pre-existing liabilities or legal claims, deferred revenue and contingent consideration, each as may be applicable. The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management but are inherently uncertain. Our assumptions and estimates are based upon comparable market data and information obtained from our management and the management of the acquired companies as well as the amount and timing of future cash flows (including expected revenue growth rates and profitability), the underlying product or technology life cycles, the economic barriers to entry and the discount rate applied to the cash flows. As such, acquired tangible and identified intangible assets are classified as Level 3 assets. Unanticipated market or macroeconomic events and circumstances may occur that could affect the accuracy or validity of the estimates and assumptions. Goodwill We record goodwill when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired. We assign the goodwill to our reporting unit based on the relative expected fair value provided by the acquisition. We perform an impairment assessment at least once annually, or more frequently if indicators of potential impairment exist, which includes evaluating qualitative and quantitative factors to assess the likelihood of an impairment of a reporting unit’s goodwill. We perform impairment tests using a fair value approach when necessary. The reporting unit’s carrying value used in an impairment test represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash, investments and debt. Identified intangible assets Licensed technology and patents are generally amortized on a straight-line basis over the periods of benefit. We amortize all acquisition-related intangible assets that are subject to amortization over their estimated useful life based on economic benefit. Acquisition-related in-process R&D assets represent the fair value of incomplete R&D projects that had not reached technological feasibility as of the date of acquisition; initially, these assets are not subject to amortization. Assets related to projects that have been completed are subject to amortization, while assets related to projects that have been abandoned are impaired and expensed to R&D. We perform an impairment assessment for indefinite-lived intangible assets at least once annually, or more frequently if indicators of potential impairment exist, to determine whether it is more likely than not that the carrying value of the assets may not be recoverable. If necessary, a quantitative impairment test is performed to compare the fair value of the indefinite-lived intangible asset with its carrying value. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. Impairment or disposal of identified long-lived assets We perform reviews of long-lived assets including property, plant and equipment, ROU assets, and intangible assets subject to amortization, whenever facts and circumstances indicate that the useful life is shorter than what we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess the recoverability of the long-lived assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. Impairment losses, if any, are based on the excess of the carrying amount over the fair value of those assets. If an asset’s useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair values less costs to sell and are not depreciated. Fair value measurements Fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for an identical asset or liability, we develop assumptions based on market observable data and, in the absence of such data, utilize internal information that we consider to be consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Priority is given to observable inputs. These two types of inputs form the basis for the following fair value hierarchy. • Level 1: Quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and valuations based on models where the inputs or significant value drivers are observable, either directly or indirectly. • Level 3: Significant inputs to the valuation model are unobservable. Foreign currencies The Company uses the U.S. dollar as its reporting currency. The functional currency of the Company is the U.S. dollar. For consolidation purposes, the financial statements of the entities within the Company with a functional currency other than the U.S. dollar, are translated into U.S. dollars. Assets and liabilities are translated using the exchange rates on the applicable balance sheet dates. Income and expense items in the statements of operations, statements of comprehensive income and statements of cash flows are translated at monthly exchange rates in the periods involved. The effects of translating the financial position and results of operations from functional currencies to reporting currency are recognized in other comprehensive income and presented as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. If the operation is a non-wholly owned subsidiary, then the relevant proportionate share of the translation difference is recorded under non-controlling interests. The following table sets out the exchange rates for U.S. dollars into euros applicable for translation of NXP’s financial statements for the periods specified. $ per € 1 period end average (1) high low Year-ended December 31, 2022 1.0670 1.0559 0.9694 1.1325 Year-ended December 31, 2021 1.1325 1.1818 1.1325 1.2280 Year-ended December 31, 2020 1.2280 1.1412 1.0862 1.2280 (1) The average of the noon-buying rate at the end of each fiscal month during the period presented. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction or the date of valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of operations, except when the foreign exchange exposure is part of a qualifying cash flow or net investment hedge accounting relationship, in which case the related foreign exchange gains and losses are recognized directly in other comprehensive income to the extent that the hedge is effective and presented as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. To the extent that the hedge is ineffective, such differences are recognized in the statement of operations. Currency gains and losses on intercompany loans that have the nature of a permanent investment are recognized as translation differences in other comprehensive income and are presented as a separate component of accumulated other comprehensive income (loss) within equity. Derivative financial instruments including hedge accounting The Company uses derivative financial instruments in the management of its foreign currency risks and the input costs of gold for a portion of our anticipated purchases within the next 12 months. The Company measures all derivative financial instruments based on fair values derived from market prices of the instruments or from option pricing models, as appropriate, and records these as assets or liabilities in the balance sheet. Changes in the fair values are immediately recognized in the statement of operations unless cash flow hedge accounting is applied. The cash flows associated with these derivative instruments are classified in the consolidated statements of cash flows in the same category as the hedged transaction. Changes in the fair value of a derivative that is highly effective and designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income (loss), until earnings are affected by the variability in cash flows of the designated hedged item. The cash flows associated with these derivative instruments are classified in the consolidated statements of cash flows in the same category as the hedged transaction. The application of cash flow hedge accounting for foreign currency risks is limited to transactions that represent a substantial currency risk that could materially affect the financial position of the Company. Foreign currency gains or losses arising from the translation of a financial liability designated as a hedge of a net investment in a foreign operation are recognized directly in other comprehensive income, to the extent that the hedge is effective, and are presented as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. To the extent that a hedge is ineffective, the ineffective portion of the fair value change is recognized in the Consolidated Statements of Operations. When the hedged net investment is disposed of, the corresponding amount in the accumulated other comprehensive income is transferred to the statement of operations as part of the profit or loss on disposal. On initial designation of the hedge relationship between the hedging instrument and hedged item, the Company documents this relationship, including the risk management objectives, strategy in undertaking the hedge transaction and the hedged risk, and the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk. When cash flow hedge accounting is discontinued because it is not probable that a forecasted transaction will occur within a period of two months from the originally forecasted transaction date, the Company continues to carry the derivative on the Consolidated Balance Sheets at its fair value, and gains and losses that were accumulated in other comprehensive income are recognized immediately in earnings. In situations in which hedge accounting is discontinued, the Company continues to carry the derivative at its fair value on the Consolidated Balance Sheets and recognizes any changes in its fair value in earnings. The gross notional amounts of the Company’s foreign currency derivatives by currency for the years ended December 31, 2022 and December 31, 2021 were as follows: 2022 2021 Euro 579 528 Chinese renminbi 258 242 Great British pound 2 40 Japanese yen 31 41 Malaysian ringgit 119 122 Singapore dollar 88 76 Swiss franc 28 30 New Taiwan dollar 203 213 Thai baht 107 112 Other 60 54 Dividends to shareholders Dividends to the Company’s shareholders are charged to retained earnings when the dividends are approved. Stock repurchases and retirement For each repurchase of common stock, the number of shares and the acquisition price for those shares is added to the existing treasury stock count and total value. When treasury shares are retired, the Company's policy is to allocate the excess of the repurchase price over the par value of shares acquired to both Retained Earnings and Capital in Excess of Par. The portion allocated to Capital in Excess of Par is calculated by applying a percentage, determined by dividing the number of shares to be retired by the number of shares issued, to the balance of Capital in Excess of Par as of the retirement date. Research and development Costs of research and development (R&D) are expensed in the period in which they are incurred, except for in-process research and development (IPR&D) assets acquired in business combinations, which are capitalized and, after completion, are amortized over their estimated useful lives. Advertising Advertising costs are expensed when incurred. Debt issuance costs Direct costs incurred to obtain financings are capitalized and subsequently amortized over the term of the debt using the effective interest rate method. Upon extinguishment of any related debt, any unamortized debt issuance costs are expensed immediately. Restructuring The provision for restructuring relates to the estimated costs of initiated restructurings that have been approved by Management. When such plans require discontinuance and/or closure of lines of activities, the anticipated costs of closure or discontinuance are recorded at fair value when the liability has been incurred. The Company determines the fair value based on discounted projected cash flows in the absence of other observable inputs such as quoted prices. The restructuring liability includes the estimated cost of termination benefits provided to former or inactive employees after employment but before retirement, costs to terminate leases and other contracts, and selling costs associated with assets held for sale and other costs related to the closure of facilities. One-time employee termination benefits are recognized ratably over the future service period when those employees are required to render services to the Company, if that period exceeds 60 days or a longer legal notification period. However, generally, employee termination benefits are covered by a contract or an ongoing benefit arrangement and are recognized when it is probable that the employees will be entitled to the benefits and the amounts can be reasonably estimated. Other income (expense) Other income (expense) primarily consists of gains and losses related to divestment of activities and subsidiaries, as well as gains and losses related to the sale of long-lived assets and other non-core operating items. This includes income derived from manufacturing service arrangements (“MSA”) and transitional service arrangements (“TSA”) that are put in place when we divest a business or activity as well as related expenditures. Financial income and expense Financial income and expense is comprised of interest income on cash and cash equivalent balances, the interest expense on borrowings, the accretion of the discount or premium on issued debt, the gain or loss on the disposal of financial assets, impairment losses on financial assets and gains or losses on hedging instruments recognized in the statement of operations. Borrowing costs that are not directly attributable to the acquisition, construction or production of property, plant and equipment are recognized in the statement of operations using the effective interest method. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. Measurement of deferred tax assets and liabilities is based upon the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax liabilities for income taxes or withholding taxes on dividends from subsidiaries are recognized in situations where the Company does not consider the earnings indefinitely reinvested and to the extent that the withholding taxes are not expected to be refundable. Deferred tax assets, including assets arising from loss carryforwards, are recognized, net of a valuation allowance, if based upon the available evidence it is more likely than not that the asset will be realized. The income tax benefit from an uncertain tax position is recognized only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities. The income tax benefit recognized is measured based on the largest benefit that is greater than 50% likely to be realized upon resolution of the uncertainty. A liability for unrecognized tax benefits and the related interest and penalties is recorded under accrued liabilities and other non-current liabilities in the balance sheet based on the timing of the expected payment. Penalties related to income taxes are recorded as income tax expense, whereas interest is reported as financial expense in the statement of operations. Postretirement benefits The Company’s employees participate in pension and other postretirement benefit plans in many countries. The costs of pension and other postretirement benefits and related assets and liabilities with respect to the Company’s employees participating in the various plans are based upon actuarial valuations. Some of the Company’s defined-benefit pension plans are funded with plan assets that have been segregated and restricted in a trust, foundation or insurance company to provide for the pension benefits to which the Company has committed itself. The net liability or asset recognized in the balance sheet in respect of the postretirement plans is the present value of the projected benefit obligation less the fair value of plan assets at the balance sheet date. Most of the Company’s plans are unfunded a |
Acquisitions and Divestments
Acquisitions and Divestments | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestments | Acquisitions and Divestments 2022 On July 19, 2022, we acquired PL Sense for a total consideration of $22.1 million, net of closing adjustments. 2021 On July 6, 2021, we acquired Retune DSP for a total consideration of $15.7 million, net of closing adjustments. 2020 There were no material acquisitions during 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) |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 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: 2022 2021 2020 Distributors 7,261 6,325 4,720 Original Equipment Manufacturers and Electronic Manufacturing Services 5,775 4,587 3,728 Other 169 151 164 Total 13,205 11,063 8,612 Government assistance The Company primarily benefits from country specific R&D tax credits ("RTC") (for the period ending December 31, 2022: $66 million) as well as direct R&D grants in different jurisdictions (for the period ending December 31, 2022: $19 million). For the period ending December 31, 2022, RTC recognized is classified in the Consolidated Statements of Operations under Research and development The duration of our RTC is indefinite while subject to future policy changes in the respective countries. RTC amounts received are subject to regular audits by the relevant governments. RTC receivables are, depending on their jurisdiction, settled against income or payroll taxes, or paid in cash within a maximum period of three years. Depreciation, amortization and impairment Depreciation and amortization, including impairment charges 2022 2021 2020 Depreciation of property, plant and equipment 605 551 547 Amortization of internal use software 12 7 6 Amortization of other identified intangible assets (*) 633 704 1,435 1,250 1,262 1,988 (*) For the period ending December 31, 2021, the amount includes an impairment charge as a result of the discontinuation of an IPR&D project for an amount of $36 million. For the period ending December 31, 2020, the amount includes an impairment relative to IPR&D acquired as part of the acquisition of Freescale for an amount of $36 million. Depreciation of property, plant and equipment is primarily included in cost of revenue 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 expected to decrease as the divested business or activity becomes more established. The following table presents the split of other income (expense): 2022 2021 2020 Result from MSA and TSA arrangements 2 (2) — Other, net 1 2 114 Total 3 — 114 Financial income (expense) 2022 2021 2020 Interest income 61 4 13 Interest expense (427) (369) (362) Total interest expense, net (366) (365) (349) Net gain (loss) on extinguishment of debt (18) (22) (60) Foreign exchange rate results (17) 5 (16) Miscellaneous financing income (expense) and other, net (33) (21) 8 Total other financial income (expense) (68) (38) (68) Total (434) (403) (417) Balance Sheet Information Cash and cash equivalents At December 31, 2022 and December 31, 2021, our cash balance was $3,845 million and $2,830 million, respectively, of which $227 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. During 2022 and 2021, no dividend was paid by SSMC. Equity Investments At December 31, 2022 and December 31, 2021, the total carrying value of investments in equity securities is summarized as follows: 2022 2021 Marketable equity securities 9 18 Non-marketable equity securities 18 19 Equity-accounted investments 71 75 98 112 The total carrying value of investments in equity-accounted investees is summarized as follows: 2022 2021 Shareholding % Amount Shareholding % Amount SMART Growth Fund, L.P. 1) 8.41 % 38 8.41 % 31 Others — 33 — 44 71 75 1) Previously named “Wise Road Industry Investment Fund I, L.P.” Results related to equity-accounted investees at the end of each period were as follows: 2022 2021 2020 Company’s share in income (loss) 4 (1) (4) Other results (5) (1) — (1) (2) (4) Other current liabilities Other current liabilities at December 31, 2022 and December 31, 2021 consisted of the following: 2022 2021 Accrued compensation and benefits 467 476 Income taxes payable 296 82 Dividend payable 219 149 Other 652 468 1,634 1,175 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges At each reporting date, we evaluate our restructuring liabilities, which consist primarily of termination benefits, to ensure that our accruals are still appropriate. During 2022 and 2021, there were no new significant restructuring programs. In the fourth quarter of 2020, we recognized $38 million of employee severance costs in our restructuring liabilities, related to specific targeted actions. The following table presents the changes in the position of restructuring liabilities in 2022: Balance January 1, 2022 Additions Utilized Released Other changes (1) Balance December 31, 2022 Restructuring liabilities 37 1 (11) (7) — 20 (1) Other changes primarily related to translation differences. The total restructuring liability as of December 31, 2022 of $20 million is classified in the Consolidated Balance Sheets under current liabilities ($19 million) and non-current liabilities ($1 million). The utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years. The following table presents the changes in the position of restructuring liabilities in 2021: Balance January 1, 2021 Additions Utilized Released Other changes (1) Balance December 31, 2021 Restructuring liabilities 74 1 (37) — (1) 37 (1) Other changes primarily related to translation differences. The total restructuring liability as of December 31, 2021 of $37 million is classified in the Consolidated Balance Sheets under current liabilities ($25 million) and non-current liabilities ($12 million). The utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years. The components of restructuring charges recorded in 2022, 2021 and 2020 are as follows: 2022 2021 2020 Personnel lay-off costs (1) 1 78 Other exit costs 1 — — Release of provisions/accruals (7) — — Net restructuring charges (7) 1 78 The restructuring charges recorded in operating income are included in the following line items in the statement of operations: 2022 2021 2020 Cost of revenue (3) — 15 Research & development (2) 1 39 Selling, general and administrative (2) — 24 Net restructuring charges (7) 1 78 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In 2022, NXP generated income before income taxes of $3,363 million (2021: income of $2,180 million; 2020: income of $1 million). The components of income (loss) before income taxes are as follows: 2022 2021 2020 Netherlands 1,520 942 447 Foreign 1,843 1,238 (446) 3,363 2,180 1 The components of income tax benefit (expense) are as follows: 2022 2021 2020 Current taxes: Netherlands (285) (106) (147) Foreign (480) (186) (119) (765) (292) (266) Deferred taxes: Netherlands (10) 10 58 Foreign 246 10 291 236 20 349 Total income tax benefit (expense) (529) (272) 83 A reconciliation of the statutory income tax rate in the Netherlands as a percentage of income (loss) before income taxes and the effective income tax rate is as follows: 2022 2021 2020 amount % amount % amount % Statutory income tax rate in the Netherlands 868 25.8 545 25.0 — 25.0 Rate differential between the local statutory rates and the statutory rate of the Netherlands (80) (2.4) (42) (1.9) 22 2,175.0 Net change in valuation allowance — — (20) (0.9) 35 3,500.0 Non-deductible expenses/losses 56 1.7 53 2.5 61 6,100.0 Netherlands tax incentives (113) (3.4) (69) (3.2) (48) (4,800.0) Foreign tax incentives (266) (7.9) (163) (7.5) (117) (11,700.0) Changes in estimates of prior years' income taxes (2) (0.1) (21) (1.0) (13) (1,300.0) Sale of non-deductible goodwill — — — — 10 1,000.0 Withholding taxes 8 0.3 (8) (0.4) (31) (3,100.0) Other differences 58 1.7 (3) (0.1) (2) (200.0) Effective tax rate 529 15.7 272 12.5 (83) (8,300.0) . We recorded an income tax expense of $529 million in 2022, which reflects an effective tax rate of 15.7% compared to an expense of $272 million and an effective rate of 12.5% in 2021. The effective tax rate reflects the impact of tax incentives, a portion of our earnings being taxed in foreign jurisdictions at rates different than the Netherlands statutory tax rate, changes in estimates of prior years' income taxes, change in valuation allowance and non-deductible expenses, sale of non-deductible goodwill and withholding taxes. The impact of these items results in offsetting factors that attribute to the change in the effective tax rate between the two periods, with the significant drivers outlined below: • The Company benefits from certain tax incentives, which reduce the effective tax rate. The dollar amount of the incentive in any given year is commensurate with the taxable income in that same period. For 2022, the foreign tax and Netherlands tax incentives were higher than 2021 by $147 million, mainly due to the fact that NXP benefited from higher qualifying income and also taking into account the effect of specific U.S. tax law that became effective as from 2022. • The movement in the valuation allowance was mostly due to new Dutch corporate income tax law applicable as from 2019. A portion of the interest expenses is non-deductible in the year it is recorded but can be carried forward without expiration. The release of the valuation allowance in 2021 is due to higher qualifying income compared to 2020 and 2019. • The movement in the withholding taxes in 2022 as compared to 2021 is mainly due to considering more undistributed earnings as indefinitely reinvested in 2021, resulting in a 2021 tax benefit of $17 million. The difference of $23 million in the withholding tax benefit in 2020 as compared with the tax benefit in 2021 is mainly due to changes in the applicable deferred tax liability rate regarding future remittances of the earnings of foreign subsidiaries and due to changes in considering more undistributed earnings as indefinitely reinvested. • The other differences tax expense in 2022 is mainly relating to lower excess tax benefits, unfavorable FX-effects and higher taxes due on Global Intangible Low-Taxed Income (GILTI) inclusions in U.S. compared to the same period in 2021. GILTI is recognized as a current period expense when incurred. • The tax effect of the non-deductible goodwill of $10 million is linked to the divestiture of the VAS business in 2020. The Company benefits from income tax holidays 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 by $17 million in 2022 (2021: $14 million; 2020: $11 million) . The benefit of this tax holiday on net income per share (diluted) was $0.07 in 2022 (2021: $0.05; 2020: $0.04). Deferred tax assets and liabilities The principal components of deferred tax assets and liabilities are presented below: 2022 2021 Operating loss and tax credit carryforwards 287 317 Disallowed interest and tax incentive carryforwards 41 19 Identified intangible assets, net 1) 331 — Other accrued liabilities 111 147 Pensions 51 104 Other non-current liabilities 55 60 Share-based compensation 11 9 Restructuring liabilities 3 6 Receivables 126 89 Inventories 14 5 Total Deferred Tax Assets 1,030 756 Valuation allowance (154) (161) Total Deferred Tax Assets, net of valuation allowance 876 595 Identified intangible assets, net — (20) Undistributed earnings of foreign subsidiaries (33) (38) Property, plant and equipment, net (11) (7) Goodwill (97) (83) Other current and non-current assets (64) (63) Total Deferred Tax Liabilities (205) (211) Net Deferred Tax Position 671 384 1) The change in Identified intangible assets, net from a deferred tax liability to a deferred tax asset is due to the effect of a specific U.S. tax law that became effective as from 2022. The classification of the deferred tax assets and liabilities in the Company’s Consolidated Balance Sheets is as follows: 2022 2021 Deferred tax assets within other non-current assets 716 441 Deferred tax liabilities within non-current liabilities (45) (57) 671 384 The Company has significant deferred tax assets resulting from net operating loss carryforwards, tax credit carryforwards and deductible temporary differences that may reduce taxable income or income taxes payable in future periods. Valuation allowances have been established for deferred tax assets based on a “more likely than not” threshold. The realization of our deferred tax assets depends on our ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The valuation allowance decreased by $7 million during 2022 (2021: $66 million decrease). Besides the net change in the valuation allowance of nil this mainly includes a decrease of the valuation allowance due to expiration of tax attributes for $6 million and for the remainder due to foreign exchange translation differences. We consider all available evidence in forming a judgment regarding the valuation allowance as of December 31, 2022, including events that occur subsequent to year end but prior to the issuance of the financial statements. The deferred tax assets are recognized to the extent that we consider it more likely than not that these assets will be realized. In making such a determination, we consider all available positive and negative evidence, including reversal of existing temporary differences, projected future taxable income and tax planning strategies. At December 31, 2022 tax loss carryforwards of $470 million (inclusive of $109 million of U.S. state tax losses) will expire as follows: Balance Scheduled expiration December 31, 2022 2023 2024 2025 2026 2027 2028-2032 later unlimited Tax loss carryforwards 470 1 3 7 10 4 84 30 331 This overview is excluding carried forward tax incentives of $173 million which have an unlimited expiration date. The Company also has tax credit carryforwards of $231 million (excluding the effect of unrecognized tax benefits), which are available to offset future tax, if any, and which will expire as follows: Balance Scheduled expiration December 31, 2022 2023 2024 2025 2026 2027 2028-2032 later unlimited Tax credit carryforwards 231 10 10 18 22 7 52 60 52 The net income tax payable (excluding the liability for unrecognized tax benefits) as of December 31, 2022 amounted to $268 million (2021: net income tax payable of $55 million) and includes amounts directly receivable from or payable to tax authorities. The Company does not indefinitely reinvest the majority of the undistributed earnings of its subsidiaries. Consequently, the Company has recognized a deferred tax liability of $33 million at December 31, 2022 (2021: $38 million) for the additional income taxes and withholding taxes payable upon the future remittances of these earnings of foreign subsidiaries. The Company considers $484 million of the undistributed earnings indefinitely reinvested although the timing of the reversal can be controlled. Upon repatriation of those earnings the Company would be subject to tax of $44 million, which is not recognized as deferred tax liability at December 31, 2022. A reconciliation of the beginning and ending amount of unrecognized tax benefits excluding interest and penalties is as follows: 2022 2021 2020 Balance as of January 1, 176 161 159 Translation differences (4) (1) — Lapse of statute of limitations (3) (1) (4) Increases from tax positions taken during prior periods 1 7 5 Decreases from tax positions taken during prior periods (4) (1) — Increases from tax positions taken during current period 11 11 7 Decreases relating to settlements with the tax authorities (4) — (6) Balance as of December 31, 173 176 161 Of the total unrecognized tax benefits at December 31, 2022, $150 million, if recognized, would impact the effective tax rate. All other unrecognized tax benefits, if recognized, would not affect the effective tax rate as these would be offset by compensating adjustments in the Company’s deferred tax assets that would be subject to valuation allowance based on conditions existing at the reporting date. The Company classifies interest related to an underpayment of income taxes as financial expense and penalties as income tax expense. The total related interest and penalties recorded during the year 2022 amounted to a $1 million expense (2021: $5 million expense; 2020: $4 million expense). As of December 31, 2022 the Company has recognized a liability for related interest and penalties of $16 million (2021: $18 million; 2020: $13 million). It is reasonably possible that the total amount of unrecognized tax benefits may significantly increase/decrease within the next 12 months of the reporting date due to, for example, completion of tax examinations. It is estimated that this reasonably possible change will not be significant. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net are summarized as follows: 2022 2021 Accounts receivable from third parties 961 925 Allowance for credit loss (1) (2) 960 923 The following table presents accounts receivable, net disaggregated by sales channel: 2022 2021 Distributors 10 171 Original Equipment Manufacturers and Electronic Manufacturing Services 926 722 Other 24 30 960 923 |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories are summarized as follows: 2022 2021 Raw materials 151 107 Work in process 1,308 846 Finished goods 323 236 1,782 1,189 The portion of finished goods stored at customer locations under consignment amounted to $8 million as of December 31, 2022 (2021: $12 million). The amounts recorded above are net of an allowance for obsolescence of $125 million as of December 31, 2022 (2021: $120 million). |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net The following table presents details of the Company’s property, plant and equipment, net of accumulated depreciation: Useful Life 2022 2021 Land 162 164 Buildings 9 to 50 1,553 1,465 Machinery and installations 2 to 10 5,043 4,457 Other Equipment 1 to 10 896 802 Prepayments and construction in progress 665 423 8,319 7,311 Less accumulated depreciation (5,214) (4,676) Property, plant and equipment, net of accumulated depreciation 3,105 2,635 |
Identified Intangible Assets
Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | Identified Intangible Assets The changes in identified intangible assets were as follows: Total Balance as of January 1, 2021 Cost 9,249 Accumulated amortization/impairment (7,007) Book value 2,242 Changes in book value: Acquisitions/additions 163 Amortization (674) Impairment (37) Total changes (548) Balance as of December 31, 2021 Cost 4,715 Accumulated amortization/impairment (3,021) Book value 1,694 Changes in book value: Acquisitions/additions 264 Transfer to assets held for sale — Amortization (644) Impairment (1) Translation differences (2) Total changes (383) Balance as of December 31, 2022 Cost 3,194 Accumulated amortization/impairment (1,883) Book value 1,311 Identified intangible assets as of December 31, 2022 and 2021 respectively were composed of the following: December 31, 2022 December 31, 2021 Gross carrying amount Accumulated Gross carrying amount Accumulated IPR&D (1) 70 — 96 — Marketing-related — — 81 (81) Customer-related 788 (307) 852 (325) Technology-based 2,336 (1,576) 3,686 (2,615) Identified intangible assets 3,194 (1,883) 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: 2023 449 2024 273 2025 155 2026 79 2027 61 Thereafter 294 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 December 31, 2022. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in goodwill in 2022 and 2021 were as follows: 2022 2021 Balances as of January 1 Cost 10,075 10,098 Accumulated impairment (114) (114) Book value 9,961 9,984 Changes in book value: Acquisitions 8 6 Translation differences (26) (29) Total changes (18) (23) Balances as of December 31 Cost - Balance 10,057 10,075 Accumulated impairment - Balance (114) (114) Book value - Balance 9,943 9,961 No goodwill impairment charges were required to be recognized in 2022 or 2021. The fair value of the reporting unit substantially exceeds the carrying value of the reporting unit. See Note 3, “Acquisitions and Divestments”. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Postretirement Benefit Plans | Postretirement Benefit Plans Pensions Our employees participate in employee pension plans in accordance with legal requirements, customs and the related matters in the respective countries. These are defined-benefit pension plans, defined-contribution plans and multi-employer plans. The Company’s employees in The Netherlands participate in a multi-employer plan, implemented for the employees of the Metal and Electrical Engineering Industry ("Bedrijfstakpensioenfonds Metalektro" or "PME") in accordance with the mandatory affiliation to PME effective for the industry in which NXP operates. As this affiliation is a legal requirement for the Metal and Electrical Engineering Industry it has no expiration date. This PME multi-employer plan (a career average plan) covers 1,460 companies and 608,000 participants. The plan monitors its risk on an aggregate basis, not by company or participant and can therefore not be accounted for as a defined benefit plan. The pension fund rules state that the only obligation for affiliated companies will be to pay the annual plan contributions. There is no obligation for affiliated companies to fund plan deficits. Affiliated companies are also not entitled to any possible surpluses in the pension fund. Every participating company contributes the same fixed percentage of its total pension base, being pensionable salary minus an individual offset. The Company’s pension cost for any period is the amount of contributions due for that period. The contribution rate for the mandatory scheme will remain 27.98% in 2023, same as 2022. PME multi-employer plan 2022 2021 2020 NXP’s contributions to the plan 33 37 33 (including employees’ contributions) 6 5 4 Average number of NXP’s active employees participating in the plan 2,197 2,075 2,048 NXP’s contribution to the plan exceeded more than 5 percent of the total contribution (as of December 31 of the plan’s year end) No No No The amount for pension costs included in the statement of operations for the year 2022 was $116 million (2021: $112 million; 2020: $103 million) of which $62 million (2021: $52 million; 2020: $47 million) represents defined-contribution plans and $27 million (2021: $32 million; 2020: $29 million) represents the PME multi-employer plans. Defined-benefit plans The benefits provided by defined-benefit plans are based on employees’ years of service and compensation levels. Contributions are made by the Company, as necessary, to provide assets sufficient to meet the benefits payable to defined-benefit pension plan participants. These contributions are determined based upon various factors, including funded status, legal and tax considerations as well as local customs. The Company funds certain defined-benefit pension plans as claims are incurred. The total ongoing cost of defined-benefit plans amounted to $27 million in 2022 (2021: a cost of $28 million; 2020: a cost of $27 million). The table below provides a summary of the changes in the pension benefit obligations and defined-benefit pension plan assets for 2022 and 2021, associated with the Company’s dedicated plans, and a reconciliation of the funded status of these plans to the amounts recognized in the Consolidated Balance Sheets. 2022 2021 Projected benefit obligation Projected benefit obligation at beginning of year 730 790 Service cost 15 17 Interest cost 8 6 Actuarial (gains) and losses (146) (3) Curtailments and settlements — — Benefits paid (19) (22) Exchange rate differences (51) (58) Projected benefit obligation at end of year 537 730 Plan assets Fair value of plan assets at beginning of year 222 224 Actual return on plan assets (5) 19 Employer contributions 22 18 Curtailments and settlements — — Benefits paid (19) (21) Exchange rate differences (18) (18) Fair value of plan assets at end of year 202 222 Funded status (335) (508) Classification of the funded status is as follows – Prepaid pension cost within non-current assets 14 — – Accrued pension cost within other non-current liabilities (339) (497) – Accrued pension cost within accrued liabilities (10) (11) Total (335) (508) Accumulated benefit obligation Accumulated benefit obligation for all Company-dedicated benefit pension plans 509 705 Plans with assets less than accumulated benefit obligation (including unfunded plans) – Fair value of plan assets 84 217 – Accumulated benefit obligations 407 699 Amounts recognized in accumulated other comprehensive income (before tax) Total AOCI at beginning of year 175 214 – Net actuarial loss (gain) (145) (24) – Exchange rate differences (13) (15) Total AOCI at end of year 17 175 The net amount of projected benefit obligation and plan assets for all underfunded (including unfunded) pension plans was $335 million and $508 million at December 31, 2022 and 2021, respectively, and was classified as liabilities and non-current assets in the Consolidated Balance Sheets. For the year ended December 31, 2022, actuarial gains were primarily related to increases in discount rates of approximately 200 basis points on a weighted basis and updates to mortality table benchmarks in various countries. For the year ended December 31, 2021, actuarial gains were primarily related to increases in discount rates of approximately 40 basis points on a weighted basis and updates to mortality table benchmarks in various countries. The weighted average assumptions used to calculate the projected benefit obligations were as follows: 2022 2021 Discount rate 3.3 % 1.2 % Rate of compensation increase 2.2 % 2.2 % The weighted average assumptions used to calculate the net periodic pension cost were as follows: 2022 2021 2020 Discount rate 1.2 % 0.8 % 1.2 % Expected returns on plan assets 2.6 % 2.6 % 2.6 % Rate of compensation increase 1.9 % 1.6 % 1.5 % For the Company’s major plans, the discount rate used is based on high quality corporate bonds (iBoxx Corporate Euro AA 10+). Plans in certain Asian countries without a deep corporate bond market use a discount rate based on the local sovereign rate and the plans' maturities (Bloomberg Government Bond Yields). Expected returns per asset class are based on the assumption that asset valuations tend to return to their respective long-term equilibria. The Expected Return on Assets for any funded plan equals the average of the expected returns per asset class weighted by their portfolio weights in accordance with the fund’s strategic asset allocation. The components of net periodic pension costs were as follows: 2022 2021 2020 Service cost 15 18 17 Interest cost on the projected benefit obligation 8 6 7 Expected return on plan assets (5) (6) (5) Amortization of net (gain) loss 9 10 8 Curtailments & settlements — — — Net periodic cost 27 28 27 The components of net periodic pension cost other than the service cost component are included in Other financial income (expense) in the Consolidated Statements of Operations. Plan assets The actual pension plan asset allocation at December 31, 2022 and 2021 is as follows: 2022 2021 Asset category: Equity securities 32 % 34 % Debt securities 34 % 35 % Insurance contracts 7 % 7 % Other 27 % 24 % 100 % 100 % We met our target plan asset allocation. The investment objectives for the pension plan assets are designed to generate returns that, along with the future contributions, will enable the pension plans to meet their future obligations. The investments in our major defined benefit plans largely consist of government bonds, “Level 2” Corporate Bonds and cash to mitigate the risk of interest fluctuations. The asset mix of equity, bonds, cash and other categories is evaluated by an asset-liability modeling study for our largest plan. The assets of funded plans in other countries mostly have a large proportion of fixed income securities with return characteristics that are aligned with changes in the liabilities caused by discount rate volatility. Total pension plan assets of $202 million include $167 million related to the German and Japanese pension funds. The following table summarizes the classification of these assets. 2022 2021 Level I Level II Level III Level I Level II Level III Equity securities — 59 — — 71 — Debt securities 3 42 — 6 53 — Insurance contracts — 14 — — 15 — Other — 27 22 1 24 22 3 142 22 7 163 22 The Company currently expects to make $19 million of employer contributions to defined-benefit pension plans and $9 million of expected cash payments in relation to unfunded pension plans in 2023. Estimated future pension benefit payments The following benefit payments are expected to be made (including those for funded plans): 2023 21 2024 24 2025 24 2026 27 2027 26 Years 2028-2032 160 Postretirement health care benefits In addition to providing pension benefits, NXP provides retiree healthcare benefits in the U.S. which are accounted for as defined-benefit plans. The accumulated postretirement benefit obligation at the end of 2022 equals $3 million (2021: $4 million). |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt The following table summarizes the outstanding long-term debt as of December 31, 2022 and 2021: 2022 2021 Maturities Amount Interest rate Amount Interest rate Fixed-rate 4.625% senior unsecured notes Jun, 2023 — 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 4.40% senior unsecured notes Jun, 2027 500 4.400 — — 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 5% senior unsecured notes Jan, 2033 1,000 5.000 — — 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) Aug, 2027 — — — — Total principal 11,250 10,650 Unamortized discounts, premiums and debt (85) (78) Total debt, including unamortized discounts, 11,165 10,572 Current portion of long-term debt — — Long-term debt 11,165 10,572 Range of interest rates Average rate of interest Principal amount outstanding Due in 2023 Due after 2023 Due after 2027 Average remaining term Principal amount USD notes 2.5%- 5.55% 3.8 % 11,250 — 11,250 7,500 8.68 10,650 Revolving Credit Facility (RCF) (1) — % — % — — — — — — Bank borrowings — % — % — — — — — — 11,250 — 11,250 7,500 8.68 10,650 (1) We do not have any borrowings under the $2,500 million RCF as of December 31, 2022, nor under the $1,500 million RCF of 2021. As of December 31, 2022, the following principal amounts of long-term debt are due in the next 5 years: 2023 — 2024 1,000 2025 500 2026 1,250 2027 1,000 Due after 5 years 7,500 11,250 As of December 31, 2022, the book value of our outstanding long-term debt was $11,250 million, less debt issuance costs of $52 million and original issuance/debt discount of $33 million. As of December 31, 2022, we had no aggregate principal amount of variable interest rate indebtedness under our loan agreements. The remaining tenor of unsecured debt is on average 8.7 years. Accrued interest as of December 31, 2022 is $99 million (December 31, 2021: $57 million). 2022 Financing Activities Revolving Credit Facility On August 26, 2022, NXP B.V., together with NXP Funding LLC, amended and restated its revolving credit agreement entered into on June 11, 2019. The amended and restated revolving credit agreement provides for $2.5 billion of senior unsecured revolving credit commitments and is scheduled to mature on August 26, 2027. Exchange Offers On April 14, 2022, we initiated a registered exchange offering of our outstanding Senior Unsecured Notes for new issues of substantially identical registered debt securities (the “Exchange Offers”). The Exchange Offers expired on May 16, 2022, at which time substantially all of the Notes were exchanged for registered senior unsecured notes. Debt Issuance and redemption On May 16, 2022, NXP B.V., together with NXP Funding LLC and NXP USA, Inc., issued $500 million of 4.4% senior unsecured notes due June 1, 2027 and $1 billion of 5.0% senior unsecured notes due January 15, 2033. On May 27, 2022 we redeemed the $900 million aggregate principal amount of outstanding dollar-denominated 4.625% Senior Unsecured Notes due 2023 in accordance with the terms of the indenture. Certain terms and Covenants of the notes The Company is not required to make mandatory redemption payments or sinking fund payments with respect to the notes. The indentures governing the notes contain covenants that, among other things, limit the Company’s ability and that of restricted subsidiaries to incur additional indebtedness, create liens, pay dividends, redeem capital stock or make certain other restricted payments or investments; enter into agreements that restrict dividends from restricted subsidiaries; sell assets, including capital stock of restricted subsidiaries; engage in transactions with affiliates; and effect a consolidation or merger. The Company has been in compliance with any such indentures and financing covenants. No portion of long-term and short-term debt as of December 31, 2022 and December 31, 2021 has been secured by collateral on substantially all of the Company’s assets and of certain of its subsidiaries. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases operating | Leases Operating and finance lease assets relate to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery and installations and other equipment (vehicles and certain office equipment). These leases, except for land leases, have remaining lease terms of 1 to 12 years (land leases 25 to 67 years), some of which may include options to extend the leases for up to 6 years, and some of which may include options to terminate the leases within 1 year. As of December 31, 2022, assets recorded under finance leases amounted to $82 million and accumulated depreciation associated with finance leases was $18 million (2021: $82 million and $15 million, respectively). Finance lease liabilities The components of operating lease expense were as follows 2022 2021 2020 Operating lease cost 66 66 65 Other information related to operating leases was as follows: Supplemental cash flows information: Operating cash flows from operating leases 66 64 63 Right-of-use assets obtained in exchange for lease obligations 91 67 50 Weighted average remaining lease term 6 years 6 years 6 years Weighted average discount rate 4 % 2 % 3 % Future minimum lease payments for operating leases as of December 31, 2022 were as follows: As of December 31, 2022 2023 63 2024 53 2025 45 2026 41 2027 26 Thereafter 67 Total future minimum lease payments 295 Less: imputed interest 38 Total 257 Rent expense amounted to $11 million in 2022 compared to $10 million in 2021 and $9 million in 2020 (containing services related to leased assets as well as short-term leases). Lease liabilities related to operating leases are split between current and non-current: As of December 31, 2022 2021 Other current liabilities 55 56 Other non-current liabilities 202 181 Total 257 237 Operating lease right-of-use assets are $250 million as of December 31, 2022 (December 31, 2021: $226 million) and are included in other non-current assets |
Leases finance | Leases Operating and finance lease assets relate to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery and installations and other equipment (vehicles and certain office equipment). These leases, except for land leases, have remaining lease terms of 1 to 12 years (land leases 25 to 67 years), some of which may include options to extend the leases for up to 6 years, and some of which may include options to terminate the leases within 1 year. As of December 31, 2022, assets recorded under finance leases amounted to $82 million and accumulated depreciation associated with finance leases was $18 million (2021: $82 million and $15 million, respectively). Finance lease liabilities The components of operating lease expense were as follows 2022 2021 2020 Operating lease cost 66 66 65 Other information related to operating leases was as follows: Supplemental cash flows information: Operating cash flows from operating leases 66 64 63 Right-of-use assets obtained in exchange for lease obligations 91 67 50 Weighted average remaining lease term 6 years 6 years 6 years Weighted average discount rate 4 % 2 % 3 % Future minimum lease payments for operating leases as of December 31, 2022 were as follows: As of December 31, 2022 2023 63 2024 53 2025 45 2026 41 2027 26 Thereafter 67 Total future minimum lease payments 295 Less: imputed interest 38 Total 257 Rent expense amounted to $11 million in 2022 compared to $10 million in 2021 and $9 million in 2020 (containing services related to leased assets as well as short-term leases). Lease liabilities related to operating leases are split between current and non-current: As of December 31, 2022 2021 Other current liabilities 55 56 Other non-current liabilities 202 181 Total 257 237 Operating lease right-of-use assets are $250 million as of December 31, 2022 (December 31, 2021: $226 million) and are included in other non-current assets |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 December 31, 2022, the Company had purchase commitments of $3,672, 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 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 $58 million accrued for potential and current legal proceedings pending as of December 31, 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 December 31, 2022, the Company’s balance related to insurance reimbursements was $43 million (December 31, 2021: $46 million) and is included in “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 December 31, 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 million and $64 million. Based upon our past experience with these matters, the Company would expect to receive additional insurance reimbursement of up to $46 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 22 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 have 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. 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 had 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 year ended December 31, 2021, the Company recognized $177 million in insurance proceeds directly offsetting the loss from operations that were incurred in the period. Environmental remediation In each jurisdiction in which we operate, we are subject to many environmental, health and safety laws and regulations that govern, among other things, emissions of pollutants into the air, wastewater discharges, the use and handling of hazardous substances, waste disposal, the investigation and remediation of soil and ground water contamination and the health and safety of our employees. We are also required to obtain environmental permits from governmental authorities for certain of our operations. As with other companies engaged in similar activities or that own or operate real property, the Company faces inherent risks of environmental liability at our current and legacy manufacturing facilities. Certain environmental laws impose liability on current or previous owners or operators of real property for the cost of removal or remediation of hazardous substances. Some specific laws also assess liability on persons who arrange for hazardous substances to be sent to disposal or treatment facilities when such facilities are found to be a contributor or responsible party for environmental contamination. Soil and groundwater contamination has been identified at our properties in Nijmegen, the Netherlands and near Phoenix, Arizona, United States. The remediation processes at these locations are expected to continue for many years. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity and Earnings per Share | Stockholders’ Equity and Earnings per Share The share capital of the Company as of December 31, 2022 consists of 1,076,257,500 authorized shares, including 430,503,000 authorized shares of common stock, and 645,754,500 authorized but unissued shares of preferred stock. For repurchases of shares in 2021 and 2022, the board of directors of NXP ("the Board") made use of the authorizations renewed by the annual general meeting of shareholders on June 17, 2019, May 27, 2020, May 26, 2021 and June 1, 2022, respectively. The Board has approved the purchase of shares from participants in NXP's equity programs to satisfy participants' tax withholding obligations and this authorization will remain in effect until terminated by the Board. In November 2019, the Board approved the repurchase of shares up to a maximum of $2 billion (the "2019 Share Repurchase Program"). In March 2021, the Board approved the repurchase of shares up to a maximum of $2 billion (the "2021 Share Repurchase Program"), and in August 2021, the Board increased the 2021 Share Repurchase Program authorization by $2 billion, for a total of $4 billion approved for the repurchase of shares under the 2021 Share Repurchase Program. In January 2022, the Board approved the repurchase of shares up to a maximum of $2 billion (the "2022 Share Repurchase Program"). During the fiscal year-ended December 31, 2022, NXP repurchased 8.3 million shares, for a total of approximately $1.4 billion, and during the year-ended December 31, 2021, NXP repurchased 20.6 million shares, for a total of approximately $4 billion. As approved by the board of directors, on December 15, 2020, NXP cancelled some 26 million shares and on November 30, 2021, NXP cancelled 15 million shares. As a result, the number of issued NXP shares as per December 31, 2021 is 274,519,638 shares and as per December 31, 2022, the Company has issued and paid up 274,519,638 shares of common stock each having a par value of €0.20 or a nominal stock capital of €55 million (2021: €55 million). Cash dividends The following dividends were declared in 2022, 2021 and 2020 under NXP’s quarterly dividend program which was introduced as of the third quarter of 2018: 2022 2021 2020 Dividends declared (in millions) 885 606 420 Dividends declared (per share) 3.38 2.25 1.50 Share-based awards The Company has granted share-based awards to the members of our board of directors, management team, our other executives, selected other key employees/talents of NXP and selected new hires to receive the Company’s shares in the future. See Note 17, “Share-based Compensation”. Treasury shares From time to time, last on June 1, 2022, the General Meeting of Shareholders authorizes the Board of Directors to repurchase shares of our common stock. On that basis, the Board of Directors has approved various share repurchase programs. In accordance with the Company’s policy to provide share-based awards from its treasury share inventory, shares which have been repurchased and are held in treasury for delivery upon exercise of options and under restricted and performance share programs, are accounted for as a reduction of stockholders’ equity. Treasury shares are recorded at cost, representing the market price on the acquisition date. When issued, shares are removed from treasury shares on a first-in, first-out (FIFO) basis. Differences between the cost and the proceeds received when treasury shares are reissued, are recorded in capital in excess of par value. Deficiencies in excess of net gains arising from previous treasury share issuances are charged to retained earnings. The following transactions took place resulting from employee option and share plans: 2022 2021 2020 Total shares in treasury at beginning of year 9,569,359 9,044,952 34,082,242 Total cost 1,932 1,037 3,037 Shares acquired under repurchase program 8,330,021 20,628,901 4,828,913 Average price in $ per share 171.59 194.63 129.70 Total cost of repurchases 1,429 4,015 627 Shares delivered 2,843,148 5,104,494 3,866,203 Average price in $ per share 197.83 102.88 94.26 Amount received 59 62 71 Shares retired — 15,000,000 26,000,000 Total shares in treasury at end of year 15,056,232 9,569,359 9,044,952 Total cost 2,799 1,932 1,037 Shareholder tax on repurchased shares Under Dutch tax law, the repurchase of a company’s shares by an entity in the Netherlands is a taxable event (unless exemptions apply). The tax on the repurchased shares is attributed to the shareholders, with NXP making the payment on the shareholders’ behalf. As such, the tax on the repurchased shares is accounted for within stockholders’ equity. The computation of earnings per share (EPS) is presented in the following table: 2022 2021 2020 Net income (loss) 2,833 1,906 80 Less: Net income (loss) attributable to non-controlling interests 46 35 28 Net income (loss) attributable to stockholders 2,787 1,871 52 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 261,879 270,687 279,763 Plus incremental shares from assumed conversion of: Options 1) 276 386 526 Restricted Share Units, Performance Share Units and Equity Rights 2) 1,898 4,573 3,520 Dilutive potential common share 2,174 4,959 4,046 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1) 264,053 275,646 283,809 EPS attributable to stockholders in $: Basic net income (loss) 10.64 6.91 0.19 Diluted net income (loss) 10.55 6.79 0.18 1) No stock options to purchase shares of NXP’s common stock that were outstanding in 2022 (2021: none; 2020: none) 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. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Share-based compensation expense is included in the following line items in our consolidated statement of operations: 2022 2021 2020 Cost of revenue 47 45 45 Research and development 183 165 159 Selling, general and administrative 134 143 180 364 353 384 The income tax (expense) benefit recognized in net income related to share-based compensation expenses was $26 million (includes $4 million of excess tax benefits), $54 million (includes $32 million of excess tax benefits) and $32 million (includes $10 million of excess tax benefits) for the years ended December 31, 2022, 2021 and 2020, respectively. Long Term Incentive Plan (LTIP) The LTIP was introduced in 2010 and is a broad-based long-term retention program to attract, retain and motivate talented employees as well as align stockholder and employee interests. The LTIP provides share-based compensation (“awards”) to both our eligible employees and non-employee directors. Awards that may be granted include performance shares, stock options and restricted shares. Awards granted generally will become fully vested upon a termination event occurring within one year following a change in control, as defined. A termination event is defined as either termination of employment or services other than for cause or constructive termination resulting from a significant reduction in either the nature or scope of duties and responsibilities, a reduction in compensation or a required relocation. The number of shares authorized and available for awards at December 31, 2022 was 20.9 million. A charge of $353 million was recorded in 2022 for the LTIP (2021: $331 million; 2020: $376 million). A summary of the activity for our LTIP’s during 2022 is presented below. Stock options At December 31, 2022, there were no (2021: none) unrecognized compensation cost related to non-vested stock options. Stock options Weighted Weighted Aggregate Outstanding at January 1, 2022 458,212 56.90 Granted — — Exercised 112,010 26.55 Forfeited — — Outstanding at December 31, 2022 346,202 66.72 2.2 32 Exercisable at December 31, 2022 346,202 66.72 2.2 32 No options were granted in 2022, 2021 and 2020. The intrinsic value of the exercised options was $15 million (2021: $27 million; 2020: $45 million), whereas the amount received by NXP was $3 million (2021: $10 million; 2020: $26 million). The tax benefit realized from stock options exercised during fiscal 2022, 2021, and 2020 was $24 million, $58 million, and $33 million, respectively. Performance share units Market performance conditions The Company grants PSU awards to certain executives of the Company with a performance measure of Relative Total Shareholder Return (“Relative TSR”). Each PSU, which generally cliff vests on the third anniversary of the date of grant, entitles the grant recipient to receive from 0 to 2 common shares for each of the target units awarded based on the Relative TSR of the Company's share price as compared to a set of peer companies. The fair value of the PSUs is calculated using a Monte Carlo valuation model, utilizing assumptions underlying the Black-Scholes methodology: PSU grant assumptions 2022 2021 2020 Expected life (years) 3 3 3 Risk-free interest rate 4.48% 0.78% 0.19% Dividend yield 1.6% 1.1% 1.3% NXP share price volatility 48% 46% 46% Initial TSR 3.4% 6.5% (0.7)% Shares Weighted Outstanding at January 1, 2022 875,578 181.50 Granted 365,112 188.70 Performance based adjustment 1) (52,366) 142.41 Vested 279,200 141.27 Forfeited 47,202 179.63 Outstanding at December 31, 2022 861,922 200.06 1) The amount shown represents performance adjustments for performance-based awards granted on July 26, 2018. These units vested at 84.21% during 2022 based on the achievement of Relative TSR performance conditions. In 2022, the weighted average grant date fair value of performance share units granted was $188.70 (2021: $257.18; 2020: $164.92). In 2022, the fair value of the performance share units at the time of vesting was $42 million (2021: $395 million; 2020: nil). At December 31, 2022, there was a total of $100 million (2021: $90 million; 2020: $89 million) of unrecognized compensation cost related to non-vested performance share units. This cost is expected to be recognized over a weighted-average period of 1.9 years (2021: 1.7 years; 2020: 2.0 years). Restricted share units Shares Weighted Outstanding at January 1, 2022 4,177,917 156.89 Granted 2,927,198 147.73 Vested 2,079,402 142.82 Forfeited 246,439 157.58 Outstanding at December 31, 2022 4,779,274 157.36 The weighted average grant date fair value of restricted share units granted in 2022 was $147.73 (2021: $201.68; 2020: $129.05). The fair value of the restricted share units at the time of vesting was $319 million (2021: $533 million; 2020: $372 million). At December 31, 2022, there was a total of $621 million (2021: $546 million; 2020: $502 million) of unrecognized compensation cost related to non-vested restricted share units. This cost is expected to be recognized over a weighted-average period of 1.6 years (2021: 1.6 years; 2020: 1.5 years). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Total comprehensive income (loss) represents net income (loss) plus the results of certain equity changes not reflected in the Consolidated Statements of Operations. The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below: Currency Change in Net Accumulated As of December 31, 2020 281 11 (175) 117 Other comprehensive income (loss) before (74) (9) 23 (60) Amounts reclassified out of accumulated other — (6) — (6) Income tax effects — 4 (7) (3) Other comprehensive income (loss) (74) (11) 16 (69) As of December 31, 2021 207 — (159) 48 Other comprehensive income (loss) before (72) (36) 147 39 Amounts reclassified out of accumulated other — 35 — 35 Income tax effects — — (46) (46) Other comprehensive income (loss) (72) (1) 101 28 As of December 31, 2022 135 (1) (58) 76 |
Related-party Transactions
Related-party Transactions | 12 Months Ended |
Dec. 31, 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: 2022 2021 2020 Revenue and other income 9 8 54 Purchase of goods and services 4 4 36 The following table presents the amounts related to receivable and payable balances with these related parties: 2022 2021 Receivables 1 1 Payables 3 3 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities 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 December 31, 2022 December 31, 2021 Assets: Money market funds 1 2,817 2,111 Marketable equity securities 1 9 18 Derivative instruments-assets 2 8 5 Liabilities: Derivative instruments-liabilities 2 (6) (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. |
Segments and Geographical Infor
Segments and Geographical Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments and Geographical Information | Segments and Geographical Information NXP has one reportable segment representing the entity as a whole, aligning with our organizational structure and with the way our chief operating decision maker makes operating decisions, allocates resources, and manages the growth and profitability of the business. Geographical Information Revenue attributed to geographic areas is based on the customer’s shipped-to location. These locations are not necessarily indicative of the geographic location of our end customers or the country in which our end customers sell devices containing our products. Revenue 2022 2021 2020 China 1) 4,700 4,180 3,324 Singapore 1,444 1,269 1,064 United States 1,277 964 750 Japan 902 810 647 Germany 755 628 483 South Korea 674 467 327 Taiwan 506 388 307 Netherlands 455 352 222 Other countries 2,492 2,005 1,488 13,205 11,063 8,612 1) China includes Mainland China and Hong Kong Long-lived assets include Property and equipment, net, which were based on the physical location of the assets as of the end of each year. Property, plant and equipment, net 2022 2021 2020 United States 831 719 766 Singapore 1) 468 391 304 China 2) 437 387 257 Malaysia 360 326 288 Netherlands 326 251 212 Taiwan 291 232 178 Thailand 250 200 139 Other countries 142 129 140 3,105 2,635 2,284 1) Mainly consists of property and equipment of SSMC, our consolidated joint venture with TSMC 2) China includes Mainland China and Hong Kong |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Segment reporting | Segment reporting NXP has one reportable segment representing the entity as a whole and reflects the way in which our chief operating decision maker executes operating decisions, allocates resources, and manages the growth and profitability of the Company. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue recognition | Revenue recognition The Company recognizes revenue under the core principle to depict the transfer of control to customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The vast majority of the Company’s revenue is derived from the sale of semiconductor products to distributors, Original Equipment Manufacturers (“OEMs”) and similar customers. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the consideration to which the Company expects to be entitled. Variable consideration is estimated and includes the impact of discounts, price protection, product returns and distributor incentive programs. The estimate of variable consideration is dependent on a variety of factors, including contractual terms, analysis of historical data, current economic conditions, industry demand and both the current and forecasted pricing environments. The process of evaluating these factors is subjective and requires estimates including, but not limited to, forecasted demand, returns, pricing assumptions and inventory levels. The estimate of variable consideration is not constrained because the Company has extensive experience with these contracts. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment. In determining whether control has transferred, the Company considers if there is a present right to payment and legal title, and whether risks and rewards of ownership having transferred to the customer. The Company applies the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. The Company applies the practical expedient to expense sales commissions when incurred because the amortization period would have been one year or less. For sales to distributors, revenue is recognized upon transfer of control to the distributor. For some distributors, contractual arrangements are in place which allow these distributors to return products if certain conditions are met. These conditions generally relate to the time period during which a return is allowed and reflect customary conditions in the particular geographic market. Other return conditions relate to circumstances arising at the end of a product life cycle, when certain distributors are permitted to return products purchased during a pre-defined period after the Company has announced a product’s pending discontinuance. These return rights are a form of variable consideration and are estimated using the most likely method based on historical return rates in order to reduce revenues recognized. However, long notice periods associated with these announcements prevent significant amounts of product from being returned. For sales where return rights exist, the Company has determined, based on historical data, that only a very small percentage of the sales of this type to distributors is actually returned. Repurchase agreements with OEMs or distributors are not entered into by the Company. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include all cash balances and short-term highly liquid investments with a maturity of three months or less at acquisition that are readily convertible into known amounts of cash. Cash and cash equivalents are stated at face value which approximates fair value. |
Receivables | Receivables Receivables are carried at amortized cost, net of allowances for credit loss and net of rebates and other contingent discounts granted to distributors. When circumstances indicate a specific customer’s ability to meet its financial obligation to us is impaired, we record an allowance against amounts due and value the receivable at the amount reasonably expected to be collected. For all other customers, we evaluate our trade accounts receivable risk of credit loss based on numerous factors including historical loss rates, credit-risk concentration, and specific circumstances such as serious adverse economic conditions in a specific country or region. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first-in, first-out (FIFO) method. An allowance is made for the estimated losses due to obsolescence. This allowance is determined for groups of products based on purchases in the recent past and/or expected future demand and market conditions. Abnormal amounts of idle facility expense and waste are not capitalized in inventory. The allocation of fixed production overheads to the inventory cost is based on the normal capacity of the production facilities. |
Government Assistance | Government assistance Government grants, other than those relating to purchases of assets, are recognized as a reduction of expenditure as qualified expenditures are made. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. Government investment grants are deducted from the cost of the related asset. Depreciation is calculated using the straight-line method over the expected economic life of the asset. Depreciation of special tooling is also based on the straight-line method unless a depreciation method other than the straight-line method better represents the consumption pattern. Gains and losses on the sale of property, plant and equipment are included in other income and expense. Plant and equipment under finance leases |
Leases | Leases We determine if an arrangement is a lease at inception of the arrangement. Once it is determined that an arrangement is, or contains, a lease, that determination should only be reassessed if the legal arrangement is modified. Changes to assumptions such as market-based factors do not trigger a reassessment. Determining whether a contract contains a lease requires judgement. In general, arrangements are considered to be a lease when all of the following apply: – It conveys the right to control the use of an identified asset for a period of time in exchange for consideration; – We have substantially all economic benefits from the use of the asset; and – We can direct the use of the identified asset The terms of a lease arrangement determine how a lease is classified and the resulting income statement recognition. When the terms of a lease effectively transfer control of the underlying asset, the lease represents an in substance financed purchase (sale) of an asset and the lease is classified as a finance lease by the lessee and a sales-type lease by the lessor. When a lease does not effectively transfer control of the underlying asset to the lessee, but the lessor obtains a guarantee for the value of the asset from a third party, the lessor would classify a lease as a direct financing lease. All other leases are classified as operating leases. With the exception of seven instances (with a combined value of $64 million), the Company’s lease arrangements are all operating leases. Lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at January 1, 2019, the date of the adoption of ASC 842, or commencement date, if later, in determining the present value of future payments. The lease payments that are included in the lease liability are comprised of fixed payments (including in-substance fixed payments), less any lease incentives receivable; variable lease payments that depend on an index or rate; amounts expected to be payable by the lessee under residual value guarantees; the exercise price of a purchase option that the lessee is reasonably certain to exercise; and payments for terminating the lease unless it is reasonably certain that early termination will not occur. The lease ROU asset includes any lease payment made and initial direct costs incurred. Our lease terms include the non-cancelable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and the periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise the option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For finance leases each lease payment is allocated between the liability and finance cost. The finance cost is charged to the consolidated statement of operations over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The finance lease asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. |
Equity investments | Equity investments NXP’s equity investments include equity method investments, marketable equity investments and non-marketable equity investments. Equity method investments: NXP’s investments over which it has significant influence, but not control are accounted for using the equity method. Under the equity method, the investment is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the NXP’s share of net assets of the equity accounted investee since the acquisition date. NXP’s share of the results of operations of the equity accounted investees are recognized in ‘Results relating to equity-accounted investees’. Marketable equity investments: all equity investments with a readily determinable fair value, other than equity-method investments, in unconsolidated entities are measured at fair value through earnings in the statement of operations on a recurring basis. We classify marketable securities as current or non-current based on the nature of the securities and their availability for use in current operations. Gains and losses on investments in marketable equity securities, realized and unrealized, are recognized in ‘Financial income (expense)’. Non-marketable equity investments: all equity investments without a readily determinable fair value, other than equity-method investments, in unconsolidated entities are recorded at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar securities. All gains and losses on investments in non-marketable equity investments, realized and unrealized, are recognized in ‘Financial income (expense)’. We monitor our equity method investments and non-marketable equity securities for events or changes in circumstances which may indicate the investments are impaired. If an assessment indicates an investment is impaired, we recognize a charge for the difference between the estimated fair value and the carrying value. For equity method investments, we record impairment losses in earnings only when impairments are considered other-than-temporary. |
Business combinations | Business combinations We allocate the purchase price paid for assets acquired and liabilities assumed in connection with our acquisitions based on their estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates and judgments that could materially affect the timing or amounts recognized in our financial statements. Significant judgment is required in estimating the fair value of acquired intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, and our assumed market segment share, as well as the estimated useful life of intangible assets. Further judgment is required in estimating the fair values of deferred tax assets and liabilities, uncertain tax positions and tax-related valuation allowances, which are initially estimated as of the acquisition date, as well as inventory, property, plant and equipment, pre-existing liabilities or legal claims, deferred revenue and contingent consideration, each as may be applicable. The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management but are inherently uncertain. Our assumptions and estimates are based upon comparable market data and information obtained from our management and the management of the acquired companies as well as the amount and timing of future cash flows (including expected revenue growth rates and profitability), the underlying product or technology life cycles, the economic barriers to entry and the discount rate applied to the cash flows. As such, acquired tangible and identified intangible assets are classified |
Goodwill | Goodwill We record goodwill when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired. We assign the goodwill to our reporting unit based on the relative expected fair value provided by the acquisition. We perform an impairment assessment at least once annually, or more frequently if indicators of potential impairment exist, which includes evaluating qualitative and quantitative factors to assess the likelihood of an impairment of a reporting unit’s goodwill. We perform impairment tests using a fair value approach when necessary. The reporting unit’s carrying value used in an impairment test represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash, investments and debt. |
Identified intangible assets | Identified intangible assets Licensed technology and patents are generally amortized on a straight-line basis over the periods of benefit. We amortize all acquisition-related intangible assets that are subject to amortization over their estimated useful life based on economic benefit. Acquisition-related in-process R&D assets represent the fair value of incomplete R&D projects that had not reached technological feasibility as of the date of acquisition; initially, these assets are not subject to amortization. Assets related to projects that have been completed are subject to amortization, while assets related to projects that have been abandoned are impaired and expensed to R&D. We perform an impairment assessment for indefinite-lived intangible assets at least once annually, or more frequently if indicators of potential impairment exist, to determine whether it is more likely than not that the carrying value of the assets may not be recoverable. If necessary, a quantitative impairment test is performed to compare the fair value of the indefinite-lived intangible asset with its carrying value. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. |
Impairment or disposal of identified long-lived assets | Impairment or disposal of identified long-lived assets We perform reviews of long-lived assets including property, plant and equipment, ROU assets, and intangible assets subject to amortization, whenever facts and circumstances indicate that the useful life is shorter than what we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess the recoverability of the long-lived assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. Impairment losses, if any, are based on the excess of the carrying amount over the fair value of those assets. If an asset’s useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair values less costs to sell and are not depreciated. |
Fair value measurements | Fair value measurements Fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for an identical asset or liability, we develop assumptions based on market observable data and, in the absence of such data, utilize internal information that we consider to be consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Priority is given to observable inputs. These two types of inputs form the basis for the following fair value hierarchy. • Level 1: Quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and valuations based on models where the inputs or significant value drivers are observable, either directly or indirectly. |
Foreign currencies | Foreign currencies The Company uses the U.S. dollar as its reporting currency. The functional currency of the Company is the U.S. dollar. For consolidation purposes, the financial statements of the entities within the Company with a functional currency other than the U.S. dollar, are translated into U.S. dollars. Assets and liabilities are translated using the exchange rates on the applicable balance sheet dates. Income and expense items in the statements of operations, statements of comprehensive income and statements of cash flows are translated at monthly exchange rates in the periods involved. The effects of translating the financial position and results of operations from functional currencies to reporting currency are recognized in other comprehensive income and presented as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. If the operation is a non-wholly owned subsidiary, then the relevant proportionate share of the translation difference is recorded under non-controlling interests. The following table sets out the exchange rates for U.S. dollars into euros applicable for translation of NXP’s financial statements for the periods specified. $ per € 1 period end average (1) high low Year-ended December 31, 2022 1.0670 1.0559 0.9694 1.1325 Year-ended December 31, 2021 1.1325 1.1818 1.1325 1.2280 Year-ended December 31, 2020 1.2280 1.1412 1.0862 1.2280 (1) The average of the noon-buying rate at the end of each fiscal month during the period presented. |
Derivative financial instruments including hedge accounting | Derivative financial instruments including hedge accounting The Company uses derivative financial instruments in the management of its foreign currency risks and the input costs of gold for a portion of our anticipated purchases within the next 12 months. The Company measures all derivative financial instruments based on fair values derived from market prices of the instruments or from option pricing models, as appropriate, and records these as assets or liabilities in the balance sheet. Changes in the fair values are immediately recognized in the statement of operations unless cash flow hedge accounting is applied. The cash flows associated with these derivative instruments are classified in the consolidated statements of cash flows in the same category as the hedged transaction. Changes in the fair value of a derivative that is highly effective and designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income (loss), until earnings are affected by the variability in cash flows of the designated hedged item. The cash flows associated with these derivative instruments are classified in the consolidated statements of cash flows in the same category as the hedged transaction. The application of cash flow hedge accounting for foreign currency risks is limited to transactions that represent a substantial currency risk that could materially affect the financial position of the Company. Foreign currency gains or losses arising from the translation of a financial liability designated as a hedge of a net investment in a foreign operation are recognized directly in other comprehensive income, to the extent that the hedge is effective, and are presented as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. To the extent that a hedge is ineffective, the ineffective portion of the fair value change is recognized in the Consolidated Statements of Operations. When the hedged net investment is disposed of, the corresponding amount in the accumulated other comprehensive income is transferred to the statement of operations as part of the profit or loss on disposal. On initial designation of the hedge relationship between the hedging instrument and hedged item, the Company documents this relationship, including the risk management objectives, strategy in undertaking the hedge transaction and the hedged risk, and the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk. |
Dividends to shareholders | Dividends to shareholders Dividends to the Company’s shareholders are charged to retained earnings when the dividends are approved. |
Stock repurchases and retirement | Stock repurchases and retirement For each repurchase of common stock, the number of shares and the acquisition price for those shares is added to the existing treasury stock count and total value. When treasury shares are retired, the Company's policy is to allocate the excess of the repurchase price over the par value of shares acquired to both Retained Earnings and Capital in Excess of Par. The portion allocated to Capital in Excess of Par is calculated by applying a percentage, determined by dividing the number of shares to be retired by the number of shares issued, to the balance of Capital in Excess of Par as of the retirement date. |
Research and development | Research and development Costs of research and development (R&D) are expensed in the period in which they are incurred, except for in-process research and development (IPR&D) assets acquired in business combinations, which are capitalized and, after completion, are amortized over their estimated useful lives. |
Advertising | Advertising Advertising costs are expensed when incurred. |
Debt issuance costs | Debt issuance costs Direct costs incurred to obtain financings are capitalized and subsequently amortized over the term of the debt using the effective interest rate method. Upon extinguishment of any related debt, any unamortized debt issuance costs are expensed immediately. |
Restructuring | Restructuring The provision for restructuring relates to the estimated costs of initiated restructurings that have been approved by Management. When such plans require discontinuance and/or closure of lines of activities, the anticipated costs of closure or discontinuance are recorded at fair value when the liability has been incurred. The Company determines the fair value based on discounted projected cash flows in the absence of other observable inputs such as quoted prices. The restructuring liability includes the estimated cost of termination benefits provided to former or inactive employees after employment but before retirement, costs to terminate leases and other contracts, and selling costs associated with assets held for sale and other costs related to the closure of facilities. One-time employee termination benefits are recognized ratably over the future service period when those employees are required to render services to the Company, if that period exceeds 60 days or a longer legal notification period. However, generally, employee termination benefits are covered by a contract or an ongoing benefit arrangement and are recognized when it is probable that the employees will be entitled to the benefits and the amounts can be reasonably estimated. |
Other income (expense) | Other income (expense) Other income (expense) primarily consists of gains and losses related to divestment of activities and subsidiaries, as well as gains and losses related to the sale of long-lived assets and other non-core operating items. This includes income derived from manufacturing service arrangements (“MSA”) and transitional service arrangements (“TSA”) that are put in place when we divest a business or activity as well as related expenditures. |
Financing income and expense | Financial income and expense Financial income and expense is comprised of interest income on cash and cash equivalent balances, the interest expense on borrowings, the accretion of the discount or premium on issued debt, the gain or loss on the disposal of financial assets, impairment losses on financial assets and gains or losses on hedging instruments recognized in the statement of operations. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. Measurement of deferred tax assets and liabilities is based upon the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax liabilities for income taxes or withholding taxes on dividends from subsidiaries are recognized in situations where the Company does not consider the earnings indefinitely reinvested and to the extent that the withholding taxes are not expected to be refundable. Deferred tax assets, including assets arising from loss carryforwards, are recognized, net of a valuation allowance, if based upon the available evidence it is more likely than not that the asset will be realized. The income tax benefit from an uncertain tax position is recognized only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities. The income tax benefit recognized is measured based on the largest benefit that is greater than 50% likely to be realized upon resolution of the uncertainty. A liability for unrecognized tax benefits and the related interest and penalties is recorded under accrued liabilities and other non-current liabilities in the balance sheet based on the timing of the expected payment. Penalties related to income taxes are recorded as income tax expense, whereas interest is reported as financial expense in the statement of operations. |
Postretirement benefits | Postretirement benefits The Company’s employees participate in pension and other postretirement benefit plans in many countries. The costs of pension and other postretirement benefits and related assets and liabilities with respect to the Company’s employees participating in the various plans are based upon actuarial valuations. Some of the Company’s defined-benefit pension plans are funded with plan assets that have been segregated and restricted in a trust, foundation or insurance company to provide for the pension benefits to which the Company has committed itself. The net liability or asset recognized in the balance sheet in respect of the postretirement plans is the present value of the projected benefit obligation less the fair value of plan assets at the balance sheet date. Most of the Company’s plans are unfunded and result in a provision or a net liability. For the Company’s major plans, the discount rate is derived from market yields on high quality corporate bonds. Plans in countries without a deep corporate bond market use a discount rate based on the local government bond rates. Benefit plan costs primarily represent the increase in the actuarial present value of the obligation for benefits based on employee service during the year and the interest on this obligation in respect of employee service in previous years, net of the expected return on plan assets and net of employee contributions. Actuarial gains and losses arise mainly from changes in actuarial assumptions and differences between actuarial assumptions and what has actually occurred. They are recognized in the statement of operations, over the expected average remaining service periods of the employees only to the extent that their net cumulative amount exceeds 10% of the greater of the present value of the obligation or of the fair value of plan assets at the end of the previous year (the corridor). Events which invoke a curtailment or a settlement of a benefit plan will be recognized in our statement of operations. In calculating obligation and expense, the Company is required to select actuarial assumptions. These assumptions include discount rate, expected long-term rate of return on plan assets, assumed health care trend rates and rates of increase in compensation costs determined based on current market conditions, historical information and consultation with and input from our actuaries. Changes in the key assumptions can have a significant impact to the projected benefit obligations, funding requirements and periodic cost incurred. Unrecognized prior-service costs related to the plans are amortized to the statements of operations over the average remaining service period of the active employees. Contributions to defined-contribution and multi-employer pension plans are recognized as an expense in the statements of operations as incurred. The Company determines the fair value of plan assets based on quoted prices or comparable prices for non-quoted assets. For a defined-benefit pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement defined benefit plan it is the accumulated postretirement benefit obligation. The Company recognizes as a component of other comprehensive income, net of taxes, the gains or losses and prior service costs that arise during the year but are not recognized as a component of net periodic benefit cost. Amounts recognized in accumulated other comprehensive income, including the gains or losses and the prior services costs are adjusted as they are subsequently recognized as components of net periodic benefit costs. For all the Company’s postretirement benefit plans, the measurement date is December 31, our year-end. |
Share-based compensation | Share-based compensation We recognize compensation expense for all share-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. We use the Black-Scholes option pricing model to determine the estimated fair value for certain awards. NXP’s grants through the incentive plan are equity settled. Share-based compensation cost for restricted share units (“RSU”s) with time-based vesting is measured based on the closing fair market value of our common stock on the date of the grant, reduced by the present value of the estimated expected future dividends, and then multiplied by the number of RSUs granted. Share-based compensation cost for performance-based share units (“PSU”s) granted with performance or market conditions is measured using a Monte-Carlo simulation model on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Operations. For stock options, PSUs and RSUs, the grant-date value, less estimated pre-vest forfeitures, is expensed on a straight-line basis over the vesting period. The vesting period for stock options is generally four years, for RSUs and PSUs it is generally three years. |
Earnings per share | Earnings per share Basic earnings per share attributable to stockholders is calculated by dividing net income or loss attributable to stockholders of the Company by the weighted average number of common shares outstanding during the period. |
Concentration of risk | Concentration of risk Financial instruments, including derivative financial instruments, that may potentially subject NXP to concentrations of credit risk, consist principally of cash and cash equivalents, short-term investments, long-term investments, accounts receivable and forward contracts. We sell our products to OEMs and to distributors in various markets, who resell these products to OEMs or to their subcontract manufacturers. One of our distributors accounted for 20% of our revenue in 2022, 18% in 2021 and 17% in 2020. No other distributor accounted for greater than 10% of our revenue for 2022, 2021 or 2020. No individual OEM for which we had direct sales to accounted for more than 10% of our revenue for 2022, 2021 or 2020. Credit exposure related to NXP’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. The Company uses outside suppliers or foundries for a portion of its manufacturing capacity. |
Accounting standards adopted in 2020 | Accounting standards adopted in 2022 In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information about the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity's financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. We adopted the new standard prospectively for the fiscal year ending December 31, 2022. New accounting standards not yet adopted In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ASU 2022-04, which require that a buyer in a supplier finance program to disclose sufficient information about the program, is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the implications of adoption on our Consolidated Financial Statements. 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Exchange Rates Used Table | The following table sets out the exchange rates for U.S. dollars into euros applicable for translation of NXP’s financial statements for the periods specified. $ per € 1 period end average (1) high low Year-ended December 31, 2022 1.0670 1.0559 0.9694 1.1325 Year-ended December 31, 2021 1.1325 1.1818 1.1325 1.2280 Year-ended December 31, 2020 1.2280 1.1412 1.0862 1.2280 |
Gross Notional Amounts of Company's Foreign Currency Derivatives by Currency | The gross notional amounts of the Company’s foreign currency derivatives by currency for the years ended December 31, 2022 and December 31, 2021 were as follows: 2022 2021 Euro 579 528 Chinese renminbi 258 242 Great British pound 2 40 Japanese yen 31 41 Malaysian ringgit 119 122 Singapore dollar 88 76 Swiss franc 28 30 New Taiwan dollar 203 213 Thai baht 107 112 Other 60 54 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | The following table presents revenue disaggregated by sales channel: 2022 2021 2020 Distributors 7,261 6,325 4,720 Original Equipment Manufacturers and Electronic Manufacturing Services 5,775 4,587 3,728 Other 169 151 164 Total 13,205 11,063 8,612 |
Schedule of Depreciation, Amortization and Impairment | Depreciation and amortization, including impairment charges 2022 2021 2020 Depreciation of property, plant and equipment 605 551 547 Amortization of internal use software 12 7 6 Amortization of other identified intangible assets (*) 633 704 1,435 1,250 1,262 1,988 (*) For the period ending December 31, 2021, the amount includes an impairment charge as a result of the discontinuation of an IPR&D project for an amount of $36 million. For the period ending December 31, 2020, the amount includes an impairment relative to IPR&D acquired as part of the acquisition of Freescale for an amount of $36 million. |
Schedule of Other Income (Expense) | The following table presents the split of other income (expense): 2022 2021 2020 Result from MSA and TSA arrangements 2 (2) — Other, net 1 2 114 Total 3 — 114 |
Schedule of Financial Income and Expense | 2022 2021 2020 Interest income 61 4 13 Interest expense (427) (369) (362) Total interest expense, net (366) (365) (349) Net gain (loss) on extinguishment of debt (18) (22) (60) Foreign exchange rate results (17) 5 (16) Miscellaneous financing income (expense) and other, net (33) (21) 8 Total other financial income (expense) (68) (38) (68) Total (434) (403) (417) |
Marketable Securities | At December 31, 2022 and December 31, 2021, the total carrying value of investments in equity securities is summarized as follows: 2022 2021 Marketable equity securities 9 18 Non-marketable equity securities 18 19 Equity-accounted investments 71 75 98 112 |
Summary of Carrying Value of Investments in Equity-Accounted Investees | The total carrying value of investments in equity-accounted investees is summarized as follows: 2022 2021 Shareholding % Amount Shareholding % Amount SMART Growth Fund, L.P. 1) 8.41 % 38 8.41 % 31 Others — 33 — 44 71 75 1) Previously named “Wise Road Industry Investment Fund I, L.P.” |
Results Relating to Equity-Accounted Investees | Results related to equity-accounted investees at the end of each period were as follows: 2022 2021 2020 Company’s share in income (loss) 4 (1) (4) Other results (5) (1) — (1) (2) (4) |
Other Current Liabilities | Other current liabilities at December 31, 2022 and December 31, 2021 consisted of the following: 2022 2021 Accrued compensation and benefits 467 476 Income taxes payable 296 82 Dividend payable 219 149 Other 652 468 1,634 1,175 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table presents the changes in the position of restructuring liabilities in 2022: Balance January 1, 2022 Additions Utilized Released Other changes (1) Balance December 31, 2022 Restructuring liabilities 37 1 (11) (7) — 20 (1) Other changes primarily related to translation differences. The total restructuring liability as of December 31, 2022 of $20 million is classified in the Consolidated Balance Sheets under current liabilities ($19 million) and non-current liabilities ($1 million). The utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years. The following table presents the changes in the position of restructuring liabilities in 2021: Balance January 1, 2021 Additions Utilized Released Other changes (1) Balance December 31, 2021 Restructuring liabilities 74 1 (37) — (1) 37 (1) Other changes primarily related to translation differences. The total restructuring liability as of December 31, 2021 of $37 million is classified in the Consolidated Balance Sheets under current liabilities ($25 million) and non-current liabilities ($12 million). The utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years. The components of restructuring charges recorded in 2022, 2021 and 2020 are as follows: 2022 2021 2020 Personnel lay-off costs (1) 1 78 Other exit costs 1 — — Release of provisions/accruals (7) — — Net restructuring charges (7) 1 78 The restructuring charges recorded in operating income are included in the following line items in the statement of operations: 2022 2021 2020 Cost of revenue (3) — 15 Research & development (2) 1 39 Selling, general and administrative (2) — 24 Net restructuring charges (7) 1 78 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | he components of income (loss) before income taxes are as follows: 2022 2021 2020 Netherlands 1,520 942 447 Foreign 1,843 1,238 (446) 3,363 2,180 1 |
Components of Benefit (Expense) for Income Taxes | The components of income tax benefit (expense) are as follows: 2022 2021 2020 Current taxes: Netherlands (285) (106) (147) Foreign (480) (186) (119) (765) (292) (266) Deferred taxes: Netherlands (10) 10 58 Foreign 246 10 291 236 20 349 Total income tax benefit (expense) (529) (272) 83 |
Reconciliation of Statutory Income Tax Rate | A reconciliation of the statutory income tax rate in the Netherlands as a percentage of income (loss) before income taxes and the effective income tax rate is as follows: 2022 2021 2020 amount % amount % amount % Statutory income tax rate in the Netherlands 868 25.8 545 25.0 — 25.0 Rate differential between the local statutory rates and the statutory rate of the Netherlands (80) (2.4) (42) (1.9) 22 2,175.0 Net change in valuation allowance — — (20) (0.9) 35 3,500.0 Non-deductible expenses/losses 56 1.7 53 2.5 61 6,100.0 Netherlands tax incentives (113) (3.4) (69) (3.2) (48) (4,800.0) Foreign tax incentives (266) (7.9) (163) (7.5) (117) (11,700.0) Changes in estimates of prior years' income taxes (2) (0.1) (21) (1.0) (13) (1,300.0) Sale of non-deductible goodwill — — — — 10 1,000.0 Withholding taxes 8 0.3 (8) (0.4) (31) (3,100.0) Other differences 58 1.7 (3) (0.1) (2) (200.0) Effective tax rate 529 15.7 272 12.5 (83) (8,300.0) . |
Principal Components of Deferred Tax Assets and Liabilities | The principal components of deferred tax assets and liabilities are presented below: 2022 2021 Operating loss and tax credit carryforwards 287 317 Disallowed interest and tax incentive carryforwards 41 19 Identified intangible assets, net 1) 331 — Other accrued liabilities 111 147 Pensions 51 104 Other non-current liabilities 55 60 Share-based compensation 11 9 Restructuring liabilities 3 6 Receivables 126 89 Inventories 14 5 Total Deferred Tax Assets 1,030 756 Valuation allowance (154) (161) Total Deferred Tax Assets, net of valuation allowance 876 595 Identified intangible assets, net — (20) Undistributed earnings of foreign subsidiaries (33) (38) Property, plant and equipment, net (11) (7) Goodwill (97) (83) Other current and non-current assets (64) (63) Total Deferred Tax Liabilities (205) (211) Net Deferred Tax Position 671 384 1) The change in Identified intangible assets, net from a deferred tax liability to a deferred tax asset is due to the effect of a specific U.S. tax law that became effective as from 2022. |
Classification of Deferred Tax Assets and Liabilities in Consolidated Balance Sheets | The classification of the deferred tax assets and liabilities in the Company’s Consolidated Balance Sheets is as follows: 2022 2021 Deferred tax assets within other non-current assets 716 441 Deferred tax liabilities within non-current liabilities (45) (57) 671 384 |
Expiration of Tax Loss Carryforwards | At December 31, 2022 tax loss carryforwards of $470 million (inclusive of $109 million of U.S. state tax losses) will expire as follows: Balance Scheduled expiration December 31, 2022 2023 2024 2025 2026 2027 2028-2032 later unlimited Tax loss carryforwards 470 1 3 7 10 4 84 30 331 |
Expiration of Tax Credit Carryforwards | The Company also has tax credit carryforwards of $231 million (excluding the effect of unrecognized tax benefits), which are available to offset future tax, if any, and which will expire as follows: Balance Scheduled expiration December 31, 2022 2023 2024 2025 2026 2027 2028-2032 later unlimited Tax credit carryforwards 231 10 10 18 22 7 52 60 52 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits excluding interest and penalties is as follows: 2022 2021 2020 Balance as of January 1, 176 161 159 Translation differences (4) (1) — Lapse of statute of limitations (3) (1) (4) Increases from tax positions taken during prior periods 1 7 5 Decreases from tax positions taken during prior periods (4) (1) — Increases from tax positions taken during current period 11 11 7 Decreases relating to settlements with the tax authorities (4) — (6) Balance as of December 31, 173 176 161 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts receivable, net are summarized as follows: 2022 2021 Accounts receivable from third parties 961 925 Allowance for credit loss (1) (2) 960 923 |
Summary of Accounts Receivable, Net Disaggregated By Sales Channel | The following table presents accounts receivable, net disaggregated by sales channel: 2022 2021 Distributors 10 171 Original Equipment Manufacturers and Electronic Manufacturing Services 926 722 Other 24 30 960 923 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories are summarized as follows: 2022 2021 Raw materials 151 107 Work in process 1,308 846 Finished goods 323 236 1,782 1,189 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | The following table presents details of the Company’s property, plant and equipment, net of accumulated depreciation: Useful Life 2022 2021 Land 162 164 Buildings 9 to 50 1,553 1,465 Machinery and installations 2 to 10 5,043 4,457 Other Equipment 1 to 10 896 802 Prepayments and construction in progress 665 423 8,319 7,311 Less accumulated depreciation (5,214) (4,676) Property, plant and equipment, net of accumulated depreciation 3,105 2,635 |
Identified Intangible Assets (T
Identified Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Identified Intangible Assets | The changes in identified intangible assets were as follows: Total Balance as of January 1, 2021 Cost 9,249 Accumulated amortization/impairment (7,007) Book value 2,242 Changes in book value: Acquisitions/additions 163 Amortization (674) Impairment (37) Total changes (548) Balance as of December 31, 2021 Cost 4,715 Accumulated amortization/impairment (3,021) Book value 1,694 Changes in book value: Acquisitions/additions 264 Transfer to assets held for sale — Amortization (644) Impairment (1) Translation differences (2) Total changes (383) Balance as of December 31, 2022 Cost 3,194 Accumulated amortization/impairment (1,883) Book value 1,311 |
Schedule of Identified Intangible Assets | Identified intangible assets as of December 31, 2022 and 2021 respectively were composed of the following: December 31, 2022 December 31, 2021 Gross carrying amount Accumulated Gross carrying amount Accumulated IPR&D (1) 70 — 96 — Marketing-related — — 81 (81) Customer-related 788 (307) 852 (325) Technology-based 2,336 (1,576) 3,686 (2,615) Identified intangible assets 3,194 (1,883) 4,715 (3,021) |
Schedule of Estimated Amortization Expense | The estimated amortization expense for these identified intangible assets for each of the five succeeding years is: 2023 449 2024 273 2025 155 2026 79 2027 61 Thereafter 294 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The changes in goodwill in 2022 and 2021 were as follows: 2022 2021 Balances as of January 1 Cost 10,075 10,098 Accumulated impairment (114) (114) Book value 9,961 9,984 Changes in book value: Acquisitions 8 6 Translation differences (26) (29) Total changes (18) (23) Balances as of December 31 Cost - Balance 10,057 10,075 Accumulated impairment - Balance (114) (114) Book value - Balance 9,943 9,961 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of PME Multi-Employer Plan | PME multi-employer plan 2022 2021 2020 NXP’s contributions to the plan 33 37 33 (including employees’ contributions) 6 5 4 Average number of NXP’s active employees participating in the plan 2,197 2,075 2,048 NXP’s contribution to the plan exceeded more than 5 percent of the total contribution (as of December 31 of the plan’s year end) No No No |
Summary of Changes in Pension Benefit Obligations and Defined-Benefit Pension Plan Assets | The table below provides a summary of the changes in the pension benefit obligations and defined-benefit pension plan assets for 2022 and 2021, associated with the Company’s dedicated plans, and a reconciliation of the funded status of these plans to the amounts recognized in the Consolidated Balance Sheets. 2022 2021 Projected benefit obligation Projected benefit obligation at beginning of year 730 790 Service cost 15 17 Interest cost 8 6 Actuarial (gains) and losses (146) (3) Curtailments and settlements — — Benefits paid (19) (22) Exchange rate differences (51) (58) Projected benefit obligation at end of year 537 730 Plan assets Fair value of plan assets at beginning of year 222 224 Actual return on plan assets (5) 19 Employer contributions 22 18 Curtailments and settlements — — Benefits paid (19) (21) Exchange rate differences (18) (18) Fair value of plan assets at end of year 202 222 Funded status (335) (508) Classification of the funded status is as follows – Prepaid pension cost within non-current assets 14 — – Accrued pension cost within other non-current liabilities (339) (497) – Accrued pension cost within accrued liabilities (10) (11) Total (335) (508) Accumulated benefit obligation Accumulated benefit obligation for all Company-dedicated benefit pension plans 509 705 Plans with assets less than accumulated benefit obligation (including unfunded plans) – Fair value of plan assets 84 217 – Accumulated benefit obligations 407 699 Amounts recognized in accumulated other comprehensive income (before tax) Total AOCI at beginning of year 175 214 – Net actuarial loss (gain) (145) (24) – Exchange rate differences (13) (15) Total AOCI at end of year 17 175 |
Summary of Weighted Average Assumptions Used to Calculate Projected Benefit Obligations and Net Periodic Pension Cost | The weighted average assumptions used to calculate the projected benefit obligations were as follows: 2022 2021 Discount rate 3.3 % 1.2 % Rate of compensation increase 2.2 % 2.2 % The weighted average assumptions used to calculate the net periodic pension cost were as follows: 2022 2021 2020 Discount rate 1.2 % 0.8 % 1.2 % Expected returns on plan assets 2.6 % 2.6 % 2.6 % Rate of compensation increase 1.9 % 1.6 % 1.5 % |
Components of Net Periodic Pension Costs | The components of net periodic pension costs were as follows: 2022 2021 2020 Service cost 15 18 17 Interest cost on the projected benefit obligation 8 6 7 Expected return on plan assets (5) (6) (5) Amortization of net (gain) loss 9 10 8 Curtailments & settlements — — — Net periodic cost 27 28 27 |
Summary of Actual Pension Plan Assets Allocation and Classification | The actual pension plan asset allocation at December 31, 2022 and 2021 is as follows: 2022 2021 Asset category: Equity securities 32 % 34 % Debt securities 34 % 35 % Insurance contracts 7 % 7 % Other 27 % 24 % 100 % 100 % The following table summarizes the classification of these assets. 2022 2021 Level I Level II Level III Level I Level II Level III Equity securities — 59 — — 71 — Debt securities 3 42 — 6 53 — Insurance contracts — 14 — — 15 — Other — 27 22 1 24 22 3 142 22 7 163 22 |
Summary of Estimated Future Pension Benefit Payments | The following benefit payments are expected to be made (including those for funded plans): 2023 21 2024 24 2025 24 2026 27 2027 26 Years 2028-2032 160 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the outstanding long-term debt as of December 31, 2022 and 2021: 2022 2021 Maturities Amount Interest rate Amount Interest rate Fixed-rate 4.625% senior unsecured notes Jun, 2023 — 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 4.40% senior unsecured notes Jun, 2027 500 4.400 — — 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 5% senior unsecured notes Jan, 2033 1,000 5.000 — — 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) Aug, 2027 — — — — Total principal 11,250 10,650 Unamortized discounts, premiums and debt (85) (78) Total debt, including unamortized discounts, 11,165 10,572 Current portion of long-term debt — — Long-term debt 11,165 10,572 |
Schedule of Long-Term Debt | Range of interest rates Average rate of interest Principal amount outstanding Due in 2023 Due after 2023 Due after 2027 Average remaining term Principal amount USD notes 2.5%- 5.55% 3.8 % 11,250 — 11,250 7,500 8.68 10,650 Revolving Credit Facility (RCF) (1) — % — % — — — — — — Bank borrowings — % — % — — — — — — 11,250 — 11,250 7,500 8.68 10,650 |
Principal Amounts of Long-Term Debt | As of December 31, 2022, the following principal amounts of long-term debt are due in the next 5 years: 2023 — 2024 1,000 2025 500 2026 1,250 2027 1,000 Due after 5 years 7,500 11,250 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Costs and Other Information | The components of operating lease expense were as follows 2022 2021 2020 Operating lease cost 66 66 65 Other information related to operating leases was as follows: Supplemental cash flows information: Operating cash flows from operating leases 66 64 63 Right-of-use assets obtained in exchange for lease obligations 91 67 50 Weighted average remaining lease term 6 years 6 years 6 years Weighted average discount rate 4 % 2 % 3 % |
Schedule of Future Minimum Operating Lease Payments | Future minimum lease payments for operating leases as of December 31, 2022 were as follows: As of December 31, 2022 2023 63 2024 53 2025 45 2026 41 2027 26 Thereafter 67 Total future minimum lease payments 295 Less: imputed interest 38 Total 257 |
Schedule of Lease Liabilities | Lease liabilities related to operating leases are split between current and non-current: As of December 31, 2022 2021 Other current liabilities 55 56 Other non-current liabilities 202 181 Total 257 237 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Cash Dividends | The following dividends were declared in 2022, 2021 and 2020 under NXP’s quarterly dividend program which was introduced as of the third quarter of 2018: 2022 2021 2020 Dividends declared (in millions) 885 606 420 Dividends declared (per share) 3.38 2.25 1.50 |
Schedule of Transactions from Employee Option and Share Plans | The following transactions took place resulting from employee option and share plans: 2022 2021 2020 Total shares in treasury at beginning of year 9,569,359 9,044,952 34,082,242 Total cost 1,932 1,037 3,037 Shares acquired under repurchase program 8,330,021 20,628,901 4,828,913 Average price in $ per share 171.59 194.63 129.70 Total cost of repurchases 1,429 4,015 627 Shares delivered 2,843,148 5,104,494 3,866,203 Average price in $ per share 197.83 102.88 94.26 Amount received 59 62 71 Shares retired — 15,000,000 26,000,000 Total shares in treasury at end of year 15,056,232 9,569,359 9,044,952 Total cost 2,799 1,932 1,037 |
Computation of Earnings per Share (EPS) | The computation of earnings per share (EPS) is presented in the following table: 2022 2021 2020 Net income (loss) 2,833 1,906 80 Less: Net income (loss) attributable to non-controlling interests 46 35 28 Net income (loss) attributable to stockholders 2,787 1,871 52 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 261,879 270,687 279,763 Plus incremental shares from assumed conversion of: Options 1) 276 386 526 Restricted Share Units, Performance Share Units and Equity Rights 2) 1,898 4,573 3,520 Dilutive potential common share 2,174 4,959 4,046 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1) 264,053 275,646 283,809 EPS attributable to stockholders in $: Basic net income (loss) 10.64 6.91 0.19 Diluted net income (loss) 10.55 6.79 0.18 1) No stock options to purchase shares of NXP’s common stock that were outstanding in 2022 (2021: none; 2020: none) 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. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Share-Based Compensation Expense | Share-based compensation expense is included in the following line items in our consolidated statement of operations: 2022 2021 2020 Cost of revenue 47 45 45 Research and development 183 165 159 Selling, general and administrative 134 143 180 364 353 384 |
Summary of Stock Options and Changes | Stock options Weighted Weighted Aggregate Outstanding at January 1, 2022 458,212 56.90 Granted — — Exercised 112,010 26.55 Forfeited — — Outstanding at December 31, 2022 346,202 66.72 2.2 32 Exercisable at December 31, 2022 346,202 66.72 2.2 32 |
Summary of Performance Share Units | Shares Weighted Outstanding at January 1, 2022 875,578 181.50 Granted 365,112 188.70 Performance based adjustment 1) (52,366) 142.41 Vested 279,200 141.27 Forfeited 47,202 179.63 Outstanding at December 31, 2022 861,922 200.06 1) The amount shown represents performance adjustments for performance-based awards granted on July 26, 2018. These units vested at 84.21% during 2022 based on the achievement of Relative TSR performance conditions. |
Summary of Restricted Share Units | Shares Weighted Outstanding at January 1, 2022 4,177,917 156.89 Granted 2,927,198 147.73 Vested 2,079,402 142.82 Forfeited 246,439 157.58 Outstanding at December 31, 2022 4,779,274 157.36 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | PSU grant assumptions 2022 2021 2020 Expected life (years) 3 3 3 Risk-free interest rate 4.48% 0.78% 0.19% Dividend yield 1.6% 1.1% 1.3% NXP share price volatility 48% 46% 46% Initial TSR 3.4% 6.5% (0.7)% |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax | The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below: Currency Change in Net Accumulated As of December 31, 2020 281 11 (175) 117 Other comprehensive income (loss) before (74) (9) 23 (60) Amounts reclassified out of accumulated other — (6) — (6) Income tax effects — 4 (7) (3) Other comprehensive income (loss) (74) (11) 16 (69) As of December 31, 2021 207 — (159) 48 Other comprehensive income (loss) before (72) (36) 147 39 Amounts reclassified out of accumulated other — 35 — 35 Income tax effects — — (46) (46) Other comprehensive income (loss) (72) (1) 101 28 As of December 31, 2022 135 (1) (58) 76 |
Related-party Transactions (Tab
Related-party Transactions (Tables) | 12 Months Ended |
Dec. 31, 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: 2022 2021 2020 Revenue and other income 9 8 54 Purchase of goods and services 4 4 36 |
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: 2022 2021 Receivables 1 1 Payables 3 3 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 December 31, 2021 Assets: Money market funds 1 2,817 2,111 Marketable equity securities 1 9 18 Derivative instruments-assets 2 8 5 Liabilities: Derivative instruments-liabilities 2 (6) (3) |
Segments and Geographical Inf_2
Segments and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | Revenue 2022 2021 2020 China 1) 4,700 4,180 3,324 Singapore 1,444 1,269 1,064 United States 1,277 964 750 Japan 902 810 647 Germany 755 628 483 South Korea 674 467 327 Taiwan 506 388 307 Netherlands 455 352 222 Other countries 2,492 2,005 1,488 13,205 11,063 8,612 1) China includes Mainland China and Hong Kong |
Long-Lived Assets by Geographic Areas | Property, plant and equipment, net 2022 2021 2020 United States 831 719 766 Singapore 1) 468 391 304 China 2) 437 387 257 Malaysia 360 326 288 Netherlands 326 251 212 Taiwan 291 232 178 Thailand 250 200 139 Other countries 142 129 140 3,105 2,635 2,284 1) Mainly consists of property and equipment of SSMC, our consolidated joint venture with TSMC 2) China includes Mainland China and Hong Kong |
Basis of Presentation and Ove_2
Basis of Presentation and Overview - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) lease | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | |
Number of finance lease arrangements | lease | 7 | ||
Finance lease right-of-use assets | $ | $ 64 | ||
Minimum employment period for recognizing termination benefits | 60 days | ||
Percentage of fair value of plan assets | 10% | ||
Distributor A | Revenue Benchmark | Distributors Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue from a single external customer | 20% | 18% | 17% |
Stock Options | Long Term Incentive Plans | |||
Significant Accounting Policies [Line Items] | |||
Award vesting period | 4 years | ||
Restricted Share Units | Long Term Incentive Plans | |||
Significant Accounting Policies [Line Items] | |||
Award vesting period | 3 years |
Significant Accounting Polici_5
Significant Accounting Policies - Exchange Rates for U.S. Dollars into Euros Applicable for Translation of NXP's Financial Statements (Detail) - € / $ | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Statement Details [Line Items] | |||
Exchange rates for U.S. dollars into euros | 1.0670 | 1.1325 | 1.2280 |
average | |||
Financial Statement Details [Line Items] | |||
Exchange rates for U.S. dollars into euros | 1.0559 | 1.1818 | 1.1412 |
high | |||
Financial Statement Details [Line Items] | |||
Exchange rates for U.S. dollars into euros | 0.9694 | 1.1325 | 1.0862 |
low | |||
Financial Statement Details [Line Items] | |||
Exchange rates for U.S. dollars into euros | 1.1325 | 1.2280 | 1.2280 |
Significant Accounting Polici_6
Significant Accounting Policies - Gross Notional Amounts of Company's Foreign Currency Derivatives by Currency (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Euro | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | $ 579 | $ 528 |
Chinese renminbi | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 258 | 242 |
Great British pound | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 2 | 40 |
Japanese yen | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 31 | 41 |
Malaysian ringgit | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 119 | 122 |
Singapore dollar | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 88 | 76 |
Swiss franc | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 28 | 30 |
New Taiwan dollar | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 203 | 213 |
Thai baht | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 107 | 112 |
Other | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | $ 60 | $ 54 |
Acquisitions and Divestments -
Acquisitions and Divestments - Narrative (Detail) $ in Millions | 12 Months Ended | |||
Jul. 19, 2022 USD ($) | Jul. 06, 2021 USD ($) | Feb. 03, 2020 USD ($) | Dec. 31, 2021 business | |
Business Acquisition [Line Items] | ||||
Number of material acquisitions | business | 0 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense) | |||
Voice and Audio Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 161 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 110 | |||
Retune DSP | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration | $ 15.7 | |||
PL Sense | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration | $ 22.1 |
Supplemental Financial Inform_3
Supplemental Financial Information - Disaggregation of revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 13,205 | $ 11,063 | $ 8,612 |
Distributors | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,261 | 6,325 | 4,720 |
Original Equipment Manufacturers and Electronic Manufacturing Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,775 | 4,587 | 3,728 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 169 | $ 151 | $ 164 |
Supplemental Financial Inform_4
Supplemental Financial Information - Depreciation, amortization and impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue | |
Depreciation of property, plant and equipment | $ 605 | $ 551 | $ 547 |
Amortization of internal use software | 644 | 674 | |
Total | $ 1,250 | $ 1,262 | 1,988 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue | |
In-process R&D (IPR&D) | Marvell | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 36 | ||
In-process R&D (IPR&D) | Freescale Semiconductor Ltd | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 36 | ||
Internal Use Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of internal use software | 12 | 7 | 6 |
Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of other identified intangible assets | $ 633 | $ 704 | $ 1,435 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other income (expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Nonrecurring Income (Expense) [Line Items] | |||
Other, net | $ 1 | $ 2 | $ 114 |
Total | 3 | 0 | 114 |
Manufacturing Service Arrangements and Transitional Service Arrangements | |||
Other Nonrecurring Income (Expense) [Line Items] | |||
Result from MSA and TSA arrangements | $ 2 | $ (2) | $ 0 |
Supplemental Financial Inform_6
Supplemental Financial Information - Financial income and expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Financial Information [Line Items] | |||
Interest income | $ 61 | $ 4 | $ 13 |
Interest expense | (427) | (369) | (362) |
Total interest expense, net | (366) | (365) | (349) |
Net gain (loss) on extinguishment of debt | (18) | (22) | (60) |
Foreign exchange rate results | (17) | 5 | (16) |
Miscellaneous financing costs/income, net | (33) | (21) | 8 |
Total other financial income (expense) | (68) | (38) | (68) |
Total | $ (434) | $ (403) | $ (417) |
Supplemental Financial Inform_7
Supplemental Financial Information (Details) - Equity investments - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Marketable equity securities | $ 9 | $ 18 |
Other Investments | 18 | 19 |
Equity-accounted investments | 71 | 75 |
Investments | $ 98 | $ 112 |
Supplemental Financial Inform_8
Supplemental Financial Information - Other current liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation and benefits | $ 467 | $ 476 |
Income taxes payable | 296 | 82 |
Dividend payable | 219 | 149 |
Other | 652 | 468 |
Other Liabilities, Current, Total | $ 1,634 | $ 1,175 |
Supplemental Financial Inform_9
Supplemental Financial Information - Summary of carrying value of investments in equity-accounted investees (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments | $ 71 | $ 75 |
Wiseroad | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 8.41% | 8.41% |
Equity-accounted investments | $ 38 | $ 31 |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 0% | 0% |
Equity-accounted investments | $ 33 | $ 44 |
Supplemental Financial Infor_10
Supplemental Financial Information - Results relating to equity-accounted investees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Company’s share in income (loss) | $ 4 | $ (1) | $ (4) |
Other results | (5) | (1) | 0 |
Results relating to equity-accounted investees | $ (1) | $ (2) | $ (4) |
Supplemental Financial Infor_11
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Financial Information [Line Items] | |||
Cash and cash equivalents | $ 3,845 | $ 2,830 | |
Dividend distribution | $ 885 | 606 | $ 420 |
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Research and Development Expense | ||
Research and Development Tax Credits Recognized | $ 66 | ||
RTC receivable, current | 48 | ||
RTC receivable, non current | 54 | ||
Research and Development Tax Credits | |||
Supplemental Financial Information [Line Items] | |||
Government Assistance, Amount | 66 | ||
Grant | |||
Supplemental Financial Information [Line Items] | |||
Government Assistance, Amount | 19 | ||
SSMC | |||
Supplemental Financial Information [Line Items] | |||
Cash and cash equivalents | 227 | 208 | |
Dividend distribution | $ 0 | $ 0 | |
SSMC | TSMC | |||
Supplemental Financial Information [Line Items] | |||
Ownership percentage by noncontrolling owners | 38.80% |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) program | Dec. 31, 2020 USD ($) program | Dec. 31, 2021 USD ($) | |
Restructuring and Related Activities [Abstract] | |||
Restructuring and related cost, amount of Program | $ 38 | ||
Restructuring programs | program | 0 | 0 | |
Restructuring liability | $ 20 | $ 74 | $ 37 |
Restructuring Reserve, Current | 19 | 25 | |
Restructuring Reserve, Noncurrent | $ 1 | $ 12 |
Restructuring Charges - Change
Restructuring Charges - Change in Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, beginning balance | $ 37 | $ 74 |
Additions | 1 | 1 |
Utilized | (11) | (37) |
Released | (7) | 0 |
Other changes | 0 | (1) |
Restructuring liability, ending balance | $ 20 | $ 37 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Components of Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ (7) | $ 1 | $ 78 |
Personnel lay-off costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | (1) | 1 | 78 |
Other exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 1 | 0 | 0 |
Release of provisions/accruals | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ (7) | $ 0 | $ 0 |
Restructuring Charges - Sched_2
Restructuring Charges - Schedule of Restructuring Charges Recorded in Operating Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ (7) | $ 1 | $ 78 |
Cost of revenue | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | (3) | 0 | 15 |
Research & development | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | (2) | 1 | 39 |
Selling, general and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ (2) | $ 0 | $ 24 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | |||
Valuation Allowance, Deferred Tax Asset, Increase, Amount | $ (7) | $ (66) | |
Income (loss) before income taxes | 3,363 | 2,180 | $ 1 |
Benefit (provision) for income taxes | $ (529) | $ (272) | $ 83 |
Effective income tax rate reconciliation, percent | 15.70% | 12.50% | (8300.00%) |
Netherlands tax incentives | $ (113) | $ (69) | $ (48) |
Sale of non-deductible goodwill | 0 | 0 | 10 |
Effective Income Tax Rate Reconciliation Withholding Taxes, Difference | 23 | ||
Changes in estimates of prior years' income taxes | (2) | (21) | (13) |
Foreign income taxes decreases due to impact of tax holiday | $ 17 | $ 14 | $ 11 |
Benefit of tax holiday on net income per share (diluted) | $ 0.07 | $ 0.05 | $ 0.04 |
Increase in valuation allowance | $ 0 | ||
ValuationAllowanceDeferredTaxAssetDecreaseDueToLiquidatingDormantEntity | 6 | ||
Tax loss carryforwards | 470 | ||
Tax credit carryforwards | 231 | ||
Net income tax payable (receivable) excluding liability for unrecognized tax benefits | (268) | $ (55) | |
Deferred tax liability recognized in undistributed earnings of foreign subsidiaries | 33 | 38 | |
Undistributed earnings indefinitely reinvested | 484 | ||
Tax on repatriation of undistributed earnings not recognized as deferred tax liability | 44 | ||
Total unrecognized tax benefits, if recognized, would impact the effective tax rate | 150 | ||
Underpayment of tax benefits relates to interest and penalties | (1) | (5) | $ (4) |
Liability for related interest and penalties | 16 | 18 | 13 |
Effective Income Tax Rate Reconciliation Withholding Taxes | 8 | $ (8) | $ (31) |
Effective Income Tax Rate Reconciliation Withholding Taxes Indefinitely Reinvested | 17 | ||
UNITED STATES | |||
Income Tax Disclosure [Line Items] | |||
Tax loss carryforwards | 109 | ||
Dutch Tax Authorities | |||
Income Tax Disclosure [Line Items] | |||
Netherlands tax incentives | $ 147 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Netherlands | $ 1,520 | $ 942 | $ 447 |
Foreign | 1,843 | 1,238 | (446) |
Income (loss) before income taxes | $ 3,363 | $ 2,180 | $ 1 |
Income Taxes - Components of Be
Income Taxes - Components of Benefit (Expense) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current taxes: | |||
Netherlands | $ (285) | $ (106) | $ (147) |
Foreign | (480) | (186) | (119) |
Total current taxes | (765) | (292) | (266) |
Deferred taxes: | |||
Netherlands | (10) | 10 | 58 |
Foreign | 246 | 10 | 291 |
Total deferred taxes | 236 | 20 | 349 |
Total income tax benefit (expense) | $ (529) | $ (272) | $ 83 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Income Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
amount | |||
Statutory income tax rate in the Netherlands | $ 868 | $ 545 | $ 0 |
Rate differential between the local statutory rates and the statutory rate of the Netherlands | (80) | (42) | 22 |
Net change in valuation allowance | 0 | (20) | 35 |
Non-deductible expenses/losses | 56 | 53 | 61 |
Netherlands tax incentives | (113) | (69) | (48) |
Foreign tax incentives | (266) | (163) | (117) |
Changes in estimates of prior years' income taxes | (2) | (21) | (13) |
Sale of non-deductible goodwill | 0 | 0 | 10 |
Effective Income Tax Rate Reconciliation Withholding Taxes | 8 | (8) | (31) |
Other differences | 58 | (3) | (2) |
Effective tax rate | $ 529 | $ 272 | $ (83) |
% | |||
Statutory income tax rate in the Netherlands | 25.80% | 25% | 25% |
Rate differential between the local statutory rates and the statutory rate of the Netherlands | (2.40%) | (1.90%) | 2,175% |
Net change in valuation allowance | 0% | (0.90%) | 3,500% |
Non-deductible expenses/losses | 1.70% | 2.50% | 6,100% |
Netherlands tax incentives | (3.40%) | (3.20%) | (4800.00%) |
Foreign tax incentives | (7.90%) | (7.50%) | (11700.00%) |
Changes in estimates of prior years' income taxes | (0.10%) | (1.00%) | (1300.00%) |
Sale of non-deductible goodwill | 0% | 0% | 1,000% |
Effective Income Tax Rate Withholding Taxes | 0.30% | (0.40%) | (3100.00%) |
Other differences | 1.70% | (0.10%) | (200.00%) |
Effective tax rate | 15.70% | 12.50% | (8300.00%) |
Income Taxes - Principal Compon
Income Taxes - Principal Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Operating loss and tax credit carryforwards | $ 287 | $ 317 |
Disallowed interest and tax incentive carryforwards | 41 | 19 |
Deferred Tax Assets, Goodwill and Intangible Assets | 331 | 0 |
Other accrued liabilities | 111 | 147 |
Pensions | 51 | 104 |
Other non-current liabilities | 55 | 60 |
Share-based compensation | 11 | 9 |
Restructuring liabilities | 3 | 6 |
Receivables | 126 | 89 |
Inventories | 14 | 5 |
Total Deferred Tax Assets | 1,030 | 756 |
Valuation allowance | (154) | (161) |
Total Deferred Tax Assets, net of valuation allowance | 876 | 595 |
Deferred Tax Liabilities, Intangible Assets | 0 | 20 |
Undistributed earnings of foreign subsidiaries | (33) | (38) |
Property, plant and equipment, net | (11) | (7) |
Goodwill | (97) | (83) |
Other current and non-current assets | (64) | (63) |
Total Deferred Tax Liabilities | (205) | (211) |
Net Deferred Tax Position | $ 671 | $ 384 |
Income Taxes - Classification o
Income Taxes - Classification of Deferred Tax Assets and Liabilities in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets within other non-current assets | $ 716 | $ 441 |
Deferred tax liabilities within non-current liabilities | (45) | (57) |
Net deferred tax position | $ 671 | $ 384 |
Income Taxes - Expiration of Ta
Income Taxes - Expiration of Tax Loss Carryforwards (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 470 |
Disallowed interest carryforward | (173) |
2020 Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 470 |
2021 Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 1 |
2022 Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 3 |
2023 Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 7 |
2024 Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 10 |
2025 Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 4 |
2026-2030 Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 84 |
Later Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 30 |
Unlimited Tax Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 331 |
Income Taxes - Expiration of _2
Income Taxes - Expiration of Tax Credit Carryforwards (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 231 |
2020 Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 231 |
2021 Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 10 |
2022 Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 10 |
2023 Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 18 |
2024 Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 22 |
2025 Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 7 |
2026-2030 Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 52 |
Later Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 60 |
Unlimited Tax Loss Carryforwards | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 52 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance as of January 1, | $ 176 | $ 161 | $ 159 |
Translation differences | (4) | (1) | 0 |
Lapse of statute of limitations | (3) | (1) | (4) |
Increases from tax positions taken during prior periods | 1 | 7 | 5 |
Decreases from tax positions taken during prior periods | (4) | (1) | 0 |
Increases from tax positions taken during current period | 11 | 11 | 7 |
Decreases relating to settlements with the tax authorities | (4) | 0 | (6) |
Balance as of December 31, | $ 173 | $ 176 | $ 161 |
Accounts Receivable, net - Summ
Accounts Receivable, net - Summary (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable from third parties | $ 961 | $ 925 |
Allowance for credit loss | (1) | (2) |
Accounts receivable | $ 960 | $ 923 |
Accounts Receivable, net - Su_2
Accounts Receivable, net - Summary of Accounts Receivable, Net Disaggregated By Sales Channel (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 960 | $ 923 |
Distributors | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 10 | 171 |
Original Equipment Manufacturers and Electronic Manufacturing Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 926 | 722 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 24 | $ 30 |
Inventories, net - Summary of I
Inventories, net - Summary of Inventory (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 151 | $ 107 |
Work in process | 1,308 | 846 |
Finished goods | 323 | 236 |
Inventory, net | $ 1,782 | $ 1,189 |
Inventories, net - Narrative (D
Inventories, net - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Portion of finished goods stored at customer locations under consignment | $ 8 | $ 12 |
Allowance for obsolescence | $ 125 | $ 120 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Summary (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 8,319 | $ 7,311 | |
Less accumulated depreciation | (5,214) | (4,676) | |
Property, plant and equipment, net of accumulated depreciation | 3,105 | 2,635 | $ 2,284 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 162 | 164 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,553 | 1,465 | |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 9 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 50 years | ||
Machinery and installations | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 5,043 | 4,457 | |
Machinery and installations | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 2 years | ||
Machinery and installations | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 10 years | ||
Other Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 896 | 802 | |
Other Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 1 year | ||
Other Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 10 years | ||
Prepayments and construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 665 | $ 423 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Gross | $ 8,319 | $ 7,311 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Gross | 162 | 164 |
Other Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Gross | $ 896 | $ 802 |
Identified Intangible Assets -
Identified Intangible Assets - Summary of Changes in Identified Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Cost | $ 3,194 | $ 4,715 | $ 9,249 |
Accumulated amortization/impairment | (3,021) | (7,007) | |
Book value | 1,311 | 1,694 | 2,242 |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning balance, Book value | 1,694 | 2,242 | |
Changes in book value: | |||
Acquisitions/additions | 264 | 163 | |
Transfer to assets held for sale | 0 | ||
Amortization | (644) | (674) | |
Impairment | (1) | (37) | |
Translation differences | (2) | ||
Total changes | (383) | (548) | |
Ending balance, Book value | $ 1,311 | $ 1,694 | $ 2,242 |
Identified Intangible Assets _2
Identified Intangible Assets - Summary of Identified Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 3,194 | $ 4,715 | $ 9,249 |
Finite-lived intangible assets, accumulated amortization | (1,883) | (3,021) | $ (7,007) |
Marketing-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 0 | 81 | |
Finite-lived intangible assets, accumulated amortization | 0 | (81) | |
Customer-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 788 | 852 | |
Finite-lived intangible assets, accumulated amortization | (307) | (325) | |
Technology-based | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 2,336 | 3,686 | |
Finite-lived intangible assets, accumulated amortization | (1,576) | (2,615) | |
In-process R&D (IPR&D) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, gross carrying amount | $ 70 | $ 96 |
Identified Intangible Assets _3
Identified Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Other Intangible Assets $ in Millions | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 449 |
2022 | 273 |
2023 | 155 |
2024 | 79 |
2025 | 61 |
Thereafter | $ 294 |
Identified Intangible Assets _4
Identified Intangible Assets - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Weighted Average Estimated Useful Life (in Years) | 4 years |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Cost | $ 10,057 | $ 10,075 | $ 10,098 |
Accumulated impairment | (114) | (114) | (114) |
Book value | 9,943 | 9,961 | $ 9,984 |
Goodwill [Roll Forward] | |||
Beginning balance, book value | 9,961 | 9,984 | |
Changes in book value: | |||
Acquisitions | 8 | 6 | |
Translation differences | (26) | (29) | |
Total changes | (18) | (23) | |
Ending balance, book value | $ 9,943 | $ 9,961 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment charges | $ 0 | $ 0 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Narrative (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 USD ($) individual company | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Amount included in statement of operations | $ 116 | $ 112 | $ 103 | |
Defined contribution plans | 62 | 52 | 47 | |
PME multi-employer plans | 27 | 32 | 29 | |
Total (benefit) cost of defined-benefit plans | $ 27 | $ 28 | 27 | |
Decrease to discount rate | 2% | 0.40% | ||
Pension plan assets | $ 202 | |||
Employer contribution to defined-benefit pension plans | 19 | |||
Unfunded Defined Benefit Pension Plan Expected Future Benefit Payments Next Fiscal Year | 9 | |||
German and Japanese | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Pension plan assets | 167 | |||
Other Postretirement Benefits Plan | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Accumulated benefit obligation for all Company-dedicated benefit pension plans | $ 3 | $ 4 | ||
PME Multiemployer Plan [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Number of companies | company | 1,460 | |||
Number of employees participated in plan | individual | 608,000 | |||
PME Contribution rate | 27.98% | |||
PME Multiemployer Plan [Member] | Forecast | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
PME Contribution rate | 27.98% | |||
Pension Plan | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Underfunded (including unfunded) pension plans | $ (335) | (508) | ||
Pension plan assets | 202 | 222 | $ 224 | |
Accumulated benefit obligation for all Company-dedicated benefit pension plans | $ 509 | $ 705 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Summary of PME Multi-Employer Plan (Detail) - PME Multiemployer Plan [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | Dec. 31, 2020 USD ($) employee | |
Multiemployer Plans [Line Items] | |||
NXP’s contributions to the plan | $ 33 | $ 37 | $ 33 |
Employee contributions | $ 6 | $ 5 | $ 4 |
Average number of NXP’s active employees participating in the plan | employee | 2,197 | 2,075 | 2,048 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Summary of Changes in Pension Benefit Obligations and Defined-Benefit Pension Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Roll Forwards [Abstract] | |||
Service cost | $ 15 | $ 18 | $ 17 |
Interest cost | 8 | 6 | 7 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 202 | ||
Pension Plan | |||
Defined Benefit Plan, Roll Forwards [Abstract] | |||
Projected benefit obligation at beginning of year | 730 | 790 | |
Service cost | 15 | 17 | |
Interest cost | 8 | 6 | |
Actuarial (gains) and losses | (146) | (3) | |
Curtailments and settlements | 0 | 0 | |
Benefits paid | (19) | (22) | |
Exchange rate differences | (51) | (58) | |
Projected benefit obligation at end of year | 537 | 730 | 790 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Plan Assets, Amount, Beginning Balance | 222 | 224 | |
Actual return on plan assets | (5) | 19 | |
Employer contributions | 22 | 18 | |
Curtailments and settlements | 0 | 0 | |
Benefits paid | (19) | (21) | |
Exchange rate differences | (18) | (18) | |
Fair value of plan assets at end of year | 202 | 222 | 224 |
Funded status | (335) | (508) | |
Liability, Defined Benefit Pension Plan | 14 | 0 | |
Classification of the funded status is as follows | |||
– Accrued pension cost within other non-current liabilities | (339) | (497) | |
– Accrued pension cost within accrued liabilities | (10) | (11) | |
Total | (335) | (508) | |
Accumulated benefit obligation for all Company-dedicated benefit pension plans | 509 | 705 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Total AOCI at beginning of year | 175 | 214 | |
Net actuarial loss (gain) | (145) | (24) | |
Exchange rate differences | (13) | (15) | |
Total AOCI at end of year | 17 | 175 | $ 214 |
Funded Plan | Pension Plan | |||
Plans with assets less than accumulated benefit obligation (including unfunded plans) | |||
Fair value of plan assets | 84 | 217 | |
Accumulated benefit obligations | $ 407 | $ 699 |
Postretirement Benefit Plans _4
Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used to Calculate Projected Benefit Obligations (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||
Discount rate | 3.30% | 1.20% |
Rate of compensation increase | 2.20% | 2.20% |
Postretirement Benefit Plans _5
Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used Calculate Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||
Discount rate | 1.20% | 0.80% | 1.20% |
Expected returns on plan assets | 2.60% | 2.60% | 2.60% |
Rate of compensation increase | 1.90% | 1.60% | 1.50% |
Postretirement Benefit Plans _6
Postretirement Benefit Plans - Components of Net Periodic Pension Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||
Service cost | $ 15 | $ 18 | $ 17 |
Interest cost on the projected benefit obligation | 8 | 6 | 7 |
Expected return on plan assets | (5) | (6) | (5) |
Amortization of net (gain) loss | 9 | 10 | 8 |
Curtailments & settlements | 0 | 0 | 0 |
Net periodic cost | $ 27 | $ 28 | $ 27 |
Postretirement Benefit Plans _7
Postretirement Benefit Plans - Summary of Actual Pension Plan Asset Allocation (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual benefit plan asset allocation | 100% | 100% |
Equity securities | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual benefit plan asset allocation | 32% | 34% |
Debt securities | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual benefit plan asset allocation | 34% | 35% |
Insurance contracts | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual benefit plan asset allocation | 7% | 7% |
Other | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual benefit plan asset allocation | 27% | 24% |
Postretirement Benefit Plans _8
Postretirement Benefit Plans - Classification of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | $ 202 | |
Level 1 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 3 | $ 7 |
Level 2 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 142 | 163 |
Level III | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 22 | 22 |
Equity securities | Level 1 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities | Level 2 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 59 | 71 |
Equity securities | Level III | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt securities | Level 1 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 3 | 6 |
Debt securities | Level 2 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 42 | 53 |
Debt securities | Level III | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Insurance contracts | Level 1 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Insurance contracts | Level 2 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 14 | 15 |
Insurance contracts | Level III | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other | Level 1 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 0 | 1 |
Other | Level 2 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | 27 | 24 |
Other | Level III | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Fair value of plan assets | $ 22 | $ 22 |
Postretirement Benefit Plans _9
Postretirement Benefit Plans - Summary of Estimated Future Pension Benefit Payments (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
2020 | $ 21 |
2021 | 24 |
2022 | 24 |
2023 | 27 |
2024 | 26 |
Years 2028-2032 | $ 160 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) | Dec. 31, 2022 | Aug. 26, 2022 | May 16, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Total principal | $ 11,250,000,000 | $ 10,650,000,000 | ||
Unamortized discounts, premiums and debt issuance costs | (85,000,000) | (78,000,000) | ||
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments | 11,165,000,000 | 10,572,000,000 | ||
Current portion of long-term debt | 0 | 0 | ||
Long-term debt | 11,165,000,000 | 10,572,000,000 | ||
Unsecured Debt | Fixed-rate 4.625% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 0 | $ 900,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | ||
Unsecured Debt | Fixed-rate 4.875% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 1,000,000,000 | $ 1,000,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | ||
Unsecured Debt | Fixed-rate 2.7% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 500,000,000 | $ 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.70% | 2.70% | ||
Unsecured Debt | Fixed-rate 5.35% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 500,000,000 | $ 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.35% | 5.35% | ||
Unsecured Debt | Fixed-rate 3.875% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 750,000,000 | $ 750,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | 3.875% | ||
Unsecured Debt | Fixed-rate 3.15% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 500,000,000 | $ 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | 3.15% | ||
Unsecured Debt | Fixed-rate 4.40% Senior Unsecured Notes, Maturing June 2027 | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 500,000,000 | $ 500,000,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | 0% | |
Unsecured Debt | Fixed-rate 5.55% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 500,000,000 | $ 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.55% | 5.55% | ||
Unsecured Debt | Fixed-rate 4.3% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 1,000,000,000 | $ 1,000,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.30% | 4.30% | ||
Unsecured Debt | Fixed-rate 3.4% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 1,000,000,000 | $ 1,000,000,000 | ||
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] | ||||
Total principal | $ 1,000,000,000 | $ 1,000,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% | ||
Unsecured Debt | Fixed-Rate 2.65% Senior Unsecured Notes, Maturing February 2032 | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 1,000,000,000 | $ 1,000,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | 2.65% | ||
Unsecured Debt | Fixed-Rate 5.0% Senior Unsecured Notes, Maturing January 2033 | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 1,000,000,000 | $ 1,000,000,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | 0% | |
Unsecured Debt | Fixed-Rate 3.25% Senior Unsecured Notes, Maturing May 2041 | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 1,000,000,000 | $ 1,000,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | ||
Unsecured Debt | Fixed-Rate 3.125% Senior Unsecured Notes, Maturing February 2042 | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 500,000,000 | $ 500,000,000 | ||
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] | ||||
Total principal | $ 500,000,000 | $ 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | ||
Revolving Credit Facility | Floating-Rate Revolving Credit Facility, Maturity August 2027 | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 0 | $ 2,500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0% | |||
Revolving Credit Facility | 2024 Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Average rate of interest | ||
Principal amount outstanding 2022 | $ 11,250 | $ 10,650 |
Due in 2023 | 0 | |
Due after 2023 | 11,250 | |
Due after 2027 | $ 7,500 | |
Average remaining term (in years) | 8 years 8 months 4 days | |
Floating-Rate Revolving Credit Facility, Maturity August 2027 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0% | |
Average rate of interest | 0% | |
Principal amount outstanding 2022 | $ 0 | |
Revolving credit facility | $ 2,500 | |
2024 Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal amount outstanding 2022 | 0 | |
Revolving credit facility | 1,500 | |
Notes Payable to Banks | USD notes | ||
Debt Instrument [Line Items] | ||
Average rate of interest | 3.80% | |
Principal amount outstanding 2022 | $ 11,250 | 10,650 |
Due in 2023 | 0 | |
Due after 2023 | 11,250 | |
Due after 2027 | $ 7,500 | |
Average remaining term (in years) | 8 years 8 months 4 days | |
Notes Payable to Banks | USD notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |
Notes Payable to Banks | USD notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.55% | |
Bank Borrowings | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0% | |
Average rate of interest | 0% | |
Principal amount outstanding 2022 | $ 0 | $ 0 |
Debt - Principal Amounts of Lon
Debt - Principal Amounts of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 0 | |
2024 | 1,000 | |
2025 | 500 | |
2026 | 1,250 | |
2027 | 1,000 | |
Due after 5 years | 7,500 | |
Amount outstanding | 11,250 | |
Total principal | $ 11,250 | $ 10,650 |
Debt - Outstanding Debt, Debt I
Debt - Outstanding Debt, Debt Issuance Costs, Premium (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 11,165 | $ 10,572 |
Debt issuance costs | 52 | |
Debt discount | $ 33 | |
Average remaining term (in years) | 8 years 8 months 4 days | |
Interest accrued for debt | $ 99 | $ 57 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Average remaining term (in years) | 8 years 8 months 12 days |
Debt - 2022 Financing Activitie
Debt - 2022 Financing Activities (Details) - USD ($) | Dec. 31, 2022 | Aug. 26, 2022 | May 16, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 11,250,000,000 | $ 10,650,000,000 | ||
Unsecured Debt | Fixed-Rate 5.0% Senior Unsecured Notes, Maturing January 2033 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 1,000,000,000 | $ 1,000,000,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | 0% | |
Unsecured Debt | Fixed-Rate 3.25% Senior Unsecured Notes, Maturing November 2051 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 500,000,000 | $ 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | ||
Unsecured Debt | Fixed-rate 4.625% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 0 | $ 900,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | ||
Debt redeemed | $ 900,000,000 | |||
Unsecured Debt | Fixed-rate 4.40% Senior Unsecured Notes, Maturing June 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 500,000,000 | $ 500,000,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | 0% | |
Revolving Credit Facility | Floating-Rate Revolving Credit Facility, Maturity August 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 0 | $ 2,500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, option to extend term | 6 years | ||
Finance lease, option to extend term | 6 years | ||
Operating lease, termination period | 1 year | ||
Finance lease, termination period | 1 year | ||
Assets under finance leases, gross | $ 82 | $ 82 | |
Accumulated depreciation under finance leases | 18 | 15 | |
Liabilities arising from capital lease transactions | 21 | 23 | |
Rent expense | 11 | 10 | |
Rent expense | $ 9 | ||
Right-of-use assets | $ 250 | $ 226 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Other non-current liabilities | Other current liabilities, Other non-current liabilities | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Remaining Lease Term | 1 year | ||
Finance Lease, Remaining Lease Term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Remaining Lease Term | 12 years | ||
Finance Lease, Remaining Lease Term | 12 years | ||
Land | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Remaining Lease Term | 25 years | ||
Land | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Remaining Lease Term | 67 years |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 66 | $ 66 | $ 65 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental cash flows information: | |||
Operating cash flows from operating leases | $ 66 | $ 64 | $ 63 |
Right-Of-Use Assets Obtained In Exchange For Lease Obligations [Abstract] | |||
Operating leases | $ 91 | $ 67 | $ 50 |
Weighted average remaining lease term | |||
Operating leases (in years) | 6 years | 6 years | 6 years |
Weighted average discount rate | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4% | 2% | 3% |
Operating lease cost | $ 66 | $ 66 | $ 65 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 63 | |
2024 | 53 | |
2025 | 45 | |
2026 | 41 | |
2027 | 26 | |
Thereafter | 67 | |
Total future minimum lease payments | 295 | |
Less: imputed interest | 38 | |
Lease liabilities | $ 257 | $ 237 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Other current liabilities | $ (55) | $ (56) |
Other non-current liabilities | (202) | (181) |
Total | $ 257 | $ 237 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) | 12 Months Ended | |
Dec. 31, 2022 USD ($) individual | Dec. 31, 2021 USD ($) | |
Commitment And Contingencies [Line Items] | ||
Purchase commitments | $ 3,672,000,000 | |
Accrued potential and current legal fees | 58,000,000 | $ 65,000,000 |
Insurance reimbursements | 43,000,000 | 46,000,000 |
Insurance reimbursement of claims potential maximum exposure | $ 46,000,000 | |
Number of individuals affected by birth defects | individual | 22 | |
Unusual or Infrequent Item, or Both, Insurance Proceeds | $ 177,000,000 | |
Environmental costs recognized | 87,000,000 | $ 87,000,000 |
Minimum | ||
Commitment And Contingencies [Line Items] | ||
Range of possible loss | 0 | |
Maximum | ||
Commitment And Contingencies [Line Items] | ||
Range of possible loss | $ 64,000,000 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings per Share - Narrative (Detail) € / shares in Units, € in Millions, $ in Millions | 12 Months Ended | |||||||||||
Nov. 30, 2021 shares | Dec. 15, 2020 shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 shares | Dec. 31, 2022 EUR (€) € / shares shares | Jan. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) € / shares shares | Aug. 26, 2021 USD ($) | Mar. 04, 2021 USD ($) | Dec. 31, 2019 shares | Nov. 19, 2019 USD ($) | |
Class of Stock [Line Items] | ||||||||||||
Capital stock, authorized (in shares) | 1,076,257,500 | 1,076,257,500 | ||||||||||
Common stock, authorized shares (in shares) | 430,503,000 | 430,503,000 | 430,503,000 | 430,503,000 | ||||||||
Preferred stock, shares authorized (in shares) | 645,754,500 | 645,754,500 | 645,754,500 | 645,754,500 | ||||||||
Treasury stock, shares, acquired, including shares retired (in shares) | 8,300,000 | 20,600,000 | ||||||||||
Treasury stock, value, acquired, including shares retired | $ | $ 1,400 | $ 4,000 | ||||||||||
Treasury shares, retired (in shares) | 15,000,000 | 26,000,000 | 0 | 15,000,000 | 26,000,000 | |||||||
Shares acquired under repurchase program (in shares) | 8,330,021 | 20,628,901 | 4,828,913 | |||||||||
Common stock, issued and fully paid (in shares) | 274,519,638 | 274,519,638 | 274,519,638 | 274,519,638 | 274,519,638 | |||||||
Common stock, par value (in euros per share) | € / shares | € 0.20 | € 0.20 | ||||||||||
Nominal stock capital (in Euro) | $ 56 | $ 56 | € 55 | € 55 | ||||||||
Share repurchase program, amount authorized | $ | $ 2,000 | $ 4,000 | $ 2,000 | $ 2,000 | ||||||||
StockRepurchaseProgramAdditionallyAuthorizedAmount | $ | $ 2,000 | |||||||||||
Stock Options | Maximum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings per Share - Schedule of Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Dividends declared (in millions) | $ 885 | $ 606 | $ 420 |
Dividends declared (USD per share) | $ 3.38 | $ 2.25 | $ 1.50 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings per Share - Schedule of Transactions from Employee Option and Share Plans (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Nov. 30, 2021 | Dec. 15, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||||
Total shares in treasury at beginning of year (in shares) | 9,569,359 | 9,044,952 | 34,082,242 | ||
Total cost | $ 1,932 | $ 1,037 | $ 3,037 | ||
Shares acquired under repurchase program (in shares) | 8,330,021 | 20,628,901 | 4,828,913 | ||
Average price in $ per share | $ 171.59 | $ 194.63 | $ 129.70 | ||
Total cost of repurchases | $ 1,426 | $ 4,015 | $ 627 | ||
Shares delivered (in shares) | 2,843,148 | 5,104,494 | 3,866,203 | ||
Average price in $ per share | $ 197.83 | $ 102.88 | $ 94.26 | ||
Amount received | $ 59 | $ 62 | $ 71 | ||
Shares retired (in shares) | 15,000,000 | 26,000,000 | 0 | 15,000,000 | 26,000,000 |
Total shares in treasury at end of year (in shares) | 15,056,232 | 9,569,359 | 9,044,952 | ||
Total cost | $ 2,799 | $ 1,932 | $ 1,037 | ||
Shares acquired under the repurchase program, amount | $ 1,429 | $ 4,015 | $ 627 |
Stockholders' Equity and Earn_6
Stockholders' Equity and Earnings per Share - Computation of Earnings per Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share data: | |||
Net income (loss) | $ 2,833 | $ 1,906 | $ 80 |
Less: Net income (loss) attributable to non-controlling interests | 46 | 35 | 28 |
Net income (loss) attributable to stockholders | $ 2,787 | $ 1,871 | $ 52 |
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in shares) | 261,879 | 270,687 | 279,763 |
Plus incremental shares from assumed conversion of: | |||
Options (in shares) | 276 | 386 | 526 |
Restricted Share Units, Performance Share Units and Equity Rights (in shares) | 1,898 | 4,573 | 3,520 |
Dilutive potential common share (in shares) | 2,174 | 4,959 | 4,046 |
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in shares) | 264,053 | 275,646 | 283,809 |
Basic net income (loss) (in dollars per share) | $ 10.64 | $ 6.91 | $ 0.19 |
Diluted net income (loss) (in dollars per share) | $ 10.55 | $ 6.79 | $ 0.18 |
Maximum | Stock Options | |||
Plus incremental shares from assumed conversion of: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 |
Maximum | Unvested RSU's, PSU's and Equity Rights | |||
Plus incremental shares from assumed conversion of: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 300 | 100 | 600 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 364 | $ 353 | $ 384 |
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 47 | 45 | 45 |
Research & development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 183 | 165 | 159 |
Selling, general and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 134 | $ 143 | $ 180 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax (expense) benefits recognized for stock-based compensation | $ 26,000,000 | $ 54,000,000 | $ 32,000,000 |
Excess tax benefit related to share-based compensation | 4,000,000 | 32,000,000 | 10,000,000 |
Amount received on stock options exercised | $ 59,000,000 | 62,000,000 | 72,000,000 |
Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized and available for awards | 20,900,000 | ||
Charges for plan | $ 353,000,000 | 331,000,000 | 376,000,000 |
Unrecognized compensation cost | 0 | 0 | |
Intrinsic value of exercised options | 15,000,000 | 27,000,000 | 45,000,000 |
Amount received on stock options exercised | 3,000,000 | 10,000,000 | 26,000,000 |
Tax benefit realized from exercise of stock options | $ 24,000,000 | $ 58,000,000 | $ 33,000,000 |
Long Term Incentive Plans | Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 3 years | 3 years | 3 years |
Volatility rate | 48% | 46% | 46% |
Weighted-average period for recognition of compensation cost | 1 year 10 months 24 days | 1 year 8 months 12 days | 2 years |
Fair value of vested shares | $ 42,000,000 | $ 395,000,000 | $ 0 |
Unrecognized compensation cost | $ 100,000,000 | $ 90,000,000 | $ 89,000,000 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.60% | 1.10% | 1.30% |
Relative TSR | 3.40% | 6.50% | (0.70%) |
Long Term Incentive Plans | Performance Share Units | Market Performance Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of units granted (in dollars per share) | $ 188.70 | $ 257.18 | $ 164.92 |
Shares granted during the period (in shares) | 365,112 | ||
Long Term Incentive Plans | Performance Share Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted common shares per target units | 0 | ||
Long Term Incentive Plans | Performance Share Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted common shares per target units | 2 | ||
Long Term Incentive Plans | Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Weighted average grant date fair value of units granted (in dollars per share) | $ 147.73 | $ 201.68 | $ 129.05 |
Weighted-average period for recognition of compensation cost | 1 year 7 months 6 days | 1 year 7 months 6 days | 1 year 6 months |
Shares granted during the period (in shares) | 2,927,198 | ||
Fair value of vested shares | $ 319,000,000 | $ 533,000,000 | $ 372,000,000 |
Unrecognized compensation cost | $ 621,000,000 | $ 546,000,000 | $ 502,000,000 |
Special Termination Benefits | Long Term Incentive Plans | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Options and Changes (Long Term Incentive Plans) (Detail) - Long Term Incentive Plans $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Stock options, Outstanding at January 1, 2019 (in shares) | shares | 458,212 |
Stock options, Granted (in shares) | shares | 0 |
Stock options, Exercised (in shares) | shares | 112,010 |
Stock options, Forfeited (in shares) | shares | 0 |
Stock options, Outstanding at December 31, 2019 (in shares) | shares | 346,202 |
Exercisable at December 31, 2019 (in shares) | shares | 346,202 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price, Outstanding at January 1, 2018 (in dollars per share) | $ / shares | $ 56.90 |
Weighted average exercise price, Granted (in dollars per share) | $ / shares | 0 |
Weighted average exercise price, Exercised (in dollars per share) | $ / shares | 26.55 |
Weighted average exercise price, Forfeited (in dollars per share) | $ / shares | 0 |
Weighted average exercise price, Outstanding at December 31, 2018 (in dollars per share) | $ / shares | 66.72 |
Weighted average exercise price, Exercisable at December 31, 2018 (in dollars per share) | $ / shares | $ 66.72 |
Weighted average remaining contractual term, Outstanding at December 31, 2018 | 2 years 2 months 12 days |
Weighted average remaining contractual term, Exercisable at December 31, 2018 | 2 years 2 months 12 days |
Aggregate intrinsic value, Outstanding at December 31, 2018 | $ | $ 32 |
Aggregate intrinsic value, Exercisable at December 31, 2018 | $ | $ 32 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Performance Share Units (Detail) - Long Term Incentive Plans - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unrecognized compensation cost | $ 0 | $ 0 | |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 84.21% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Expected life | 3 years | 3 years | 3 years |
Risk-free interest rate, minimum | 4.48% | 0.78% | 0.19% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.60% | 1.10% | 1.30% |
Volatility rate | 48% | 46% | 46% |
Relative TSR | 3.40% | 6.50% | (0.70%) |
Performance Share Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted common shares per target units | 0 | ||
Performance Share Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted common shares per target units | 2 | ||
Performance Share Units | Market Performance Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, Outstanding at January 1, 2019 (in shares) | 875,578 | ||
Shares, Granted (in shares) | 365,112 | ||
ShareBasedCompensationArrangementsByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionPerformanceBasedAdjustment | (52,366) | ||
Shares, Vested (in shares) | 279,200 | ||
Shares, Forfeited (in shares) | 47,202 | ||
Shares, Outstanding at December 31, 2019 (in shares) | 861,922 | 875,578 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, Outstanding at January 1, 2018 (in dollars per share) | $ 181.50 | ||
Weighted average grant date fair value, Granted (in dollars per share) | 188.70 | $ 257.18 | $ 164.92 |
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentOtherThanOptionsPerformanceBasedAdjustmentWeightedAverageGrantDateFairValue | 142.41 | ||
Weighted average grant date fair value, Vested (in dollars per share) | 141.27 | ||
Weighted average grant date fair value, Forfeited (in dollars per share) | 179.63 | ||
Weighted average grant date fair value, Outstanding at December 31, 2018 (in dollars per share) | $ 200.06 | $ 181.50 |
Share-based Compensation - Su_3
Share-based Compensation - Summary of Restricted Share Units (Detail) - Long Term Incentive Plans - Restricted Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, Outstanding at January 1, 2019 (in shares) | 4,177,917 | ||
Shares, Granted (in shares) | 2,927,198 | ||
Shares, Vested (in shares) | 2,079,402 | ||
Shares, Forfeited (in shares) | 246,439 | ||
Shares, Outstanding at December 31, 2019 (in shares) | 4,779,274 | 4,177,917 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, Outstanding at January 1, 2018 (in dollars per share) | $ 156.89 | ||
Weighted average grant date fair value, Granted (in dollars per share) | 147.73 | $ 201.68 | $ 129.05 |
Weighted average grant date fair value, Vested (in dollars per share) | 142.82 | ||
Weighted average grant date fair value, Forfeited (in dollars per share) | 157.58 | ||
Weighted average grant date fair value, Outstanding at December 31, 2018 (in dollars per share) | $ 157.36 | $ 156.89 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 6,770 | $ 9,151 | $ 9,655 |
Other comprehensive income (loss) before reclassifications | 39 | (60) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 35 | (6) | |
Income tax effects | (46) | (3) | |
Total other comprehensive income (loss) | 28 | (69) | 42 |
Ending balance | 7,740 | 6,770 | 9,151 |
Currency translation differences | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 207 | 281 | |
Other comprehensive income (loss) before reclassifications | (72) | (74) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | |
Income tax effects | 0 | 0 | |
Total other comprehensive income (loss) | (72) | (74) | |
Ending balance | 135 | 207 | 281 |
Change in fair value cash flow hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 11 | |
Other comprehensive income (loss) before reclassifications | (36) | (9) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 35 | (6) | |
Income tax effects | 0 | 4 | |
Total other comprehensive income (loss) | (1) | (11) | |
Ending balance | (1) | 0 | 11 |
Net actuarial gain/(losses) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (159) | (175) | |
Other comprehensive income (loss) before reclassifications | 147 | 23 | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | |
Income tax effects | (46) | (7) | |
Total other comprehensive income (loss) | 101 | 16 | |
Ending balance | (58) | (159) | (175) |
Accumulated Other Comprehensive Income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 48 | 117 | 75 |
Total other comprehensive income (loss) | 28 | (69) | 42 |
Ending balance | $ 76 | $ 48 | $ 117 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |||
Revenue and other income | $ 9 | $ 8 | $ 54 |
Purchase of goods and services | $ 4 | $ 4 | $ 36 |
Related-party Transactions - _2
Related-party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Receivables | $ 1 | $ 1 |
Payables | $ 3 | $ 3 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Summary of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Marketable equity securities | $ 9 | $ 18 |
Estimate of Fair Value Measurement [Member] | Level 1 | ||
Assets: | ||
Marketable equity securities | 9 | 18 |
Estimate of Fair Value Measurement [Member] | Level 2 | ||
Assets: | ||
Derivative instruments-assets | 8 | 5 |
Liabilities: | ||
Derivative instruments-liabilities | (6) | (3) |
Estimate of Fair Value Measurement [Member] | Money market funds | Level 1 | ||
Assets: | ||
Money market funds | $ 2,817 | $ 2,111 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 11,165 | $ 10,572 |
Level 2 | Estimate of Fair Value Measurement [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 9,800 | $ 11,300 |
Segments and Geographical Inf_3
Segments and Geographical Information - Geographical Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 13,205 | $ 11,063 | $ 8,612 |
Property, Plant and Equipment, Net | 3,105 | 2,635 | 2,284 |
CHINA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,700 | 4,180 | 3,324 |
Property, Plant and Equipment, Net | 437 | 387 | 257 |
SINGAPORE | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,444 | 1,269 | 1,064 |
Property, Plant and Equipment, Net | 468 | 391 | 304 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,277 | 964 | 750 |
Property, Plant and Equipment, Net | 831 | 719 | 766 |
JAPAN | |||
Segment Reporting Information [Line Items] | |||
Revenue | 902 | 810 | 647 |
GERMANY | |||
Segment Reporting Information [Line Items] | |||
Revenue | 755 | 628 | 483 |
KOREA, REPUBLIC OF | |||
Segment Reporting Information [Line Items] | |||
Revenue | 674 | 467 | 327 |
TAIWAN | |||
Segment Reporting Information [Line Items] | |||
Revenue | 506 | 388 | 307 |
Property, Plant and Equipment, Net | 291 | 232 | 178 |
NETHERLANDS | |||
Segment Reporting Information [Line Items] | |||
Revenue | 455 | 352 | 222 |
Property, Plant and Equipment, Net | 326 | 251 | 212 |
MALAYSIA | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | 360 | 326 | 288 |
THAILAND | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | 250 | 200 | 139 |
Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,492 | 2,005 | 1,488 |
Property, Plant and Equipment, Net | $ 142 | $ 129 | $ 140 |