Cover Document
Cover Document - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34841 | |
Entity Registrant Name | NXP Semiconductors N.V. | |
Entity Incorporation, State or Country Code | P7 | |
Entity Tax Identification Number | 98-1144352 | |
Entity Address, Address Line One | 60 High Tech Campus | |
Entity Address, City or Town | Eindhoven | |
Entity Address, Country | NL | |
Entity Address, Postal Zip Code | 5656 AG | |
Country Region | +31 | |
City Area Code | 40 | |
Local Phone Number | 2729999 | |
Title of 12(b) Security | Common shares, EUR 0.20 par value | |
Trading Symbol | NXPI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 254,732,930 | |
Amendment Flag | false | |
Entity Central Index Key | 0001413447 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,127 | $ 3,299 | $ 6,253 | $ 6,420 |
Cost of revenue | (1,335) | (1,418) | (2,678) | (2,769) |
Gross profit | 1,792 | 1,881 | 3,575 | 3,651 |
Research and development | (594) | (589) | (1,158) | (1,166) |
Selling, general and administrative | (270) | (274) | (576) | (554) |
Amortization of acquisition-related intangible assets | (28) | (81) | (79) | (166) |
Total operating expenses | (892) | (944) | (1,813) | (1,886) |
Other income (expense) | (4) | 0 | (10) | (3) |
Operating income (loss) | 896 | 937 | 1,752 | 1,762 |
Financial income (expense): | ||||
Other financial income (expense) | (75) | (74) | (145) | (156) |
Income (loss) before income taxes | 821 | 863 | 1,607 | 1,606 |
Benefit (provision) for income taxes | (154) | (158) | (295) | (276) |
Results relating to equity-accounted investees | (3) | (1) | (4) | (3) |
Net income (loss) | 664 | 704 | 1,308 | 1,327 |
Less: Net income (loss) attributable to non-controlling interests | 6 | 6 | 11 | 14 |
Net income (loss) attributable to stockholders | $ 658 | $ 698 | $ 1,297 | $ 1,313 |
Earnings per share data: | ||||
Basic net income (loss) (in dollars per share) | $ 2.58 | $ 2.69 | $ 5.07 | $ 5.06 |
Diluted net income (loss) (in dollars per share) | $ 2.54 | $ 2.67 | $ 5.01 | $ 5.03 |
Weighted average number of shares of common stock outstanding during the period (in thousands): | ||||
Basic (in shares) | 255,478 | 259,160 | 256,023 | 259,369 |
Diluted (in shares) | 258,732 | 261,303 | 258,963 | 261,278 |
(Gain) loss on extinguishment of debt | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 664 | $ 704 | $ 1,308 | $ 1,327 |
Other comprehensive income (loss), net of tax: | ||||
Change in fair value cash flow hedges | 0 | (13) | (8) | (10) |
Change in foreign currency translation adjustment | (16) | 2 | (54) | 21 |
Change in net actuarial gain (loss) | 2 | 0 | 2 | 0 |
Total other comprehensive income (loss) | (14) | (11) | (60) | 11 |
Total comprehensive income (loss) | 650 | 693 | 1,248 | 1,338 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 6 | 6 | 11 | 14 |
Total comprehensive income (loss) attributable to stockholders | $ 644 | $ 687 | $ 1,237 | $ 1,324 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 2,859 | $ 3,862 |
Deposits Assets, Current | 400 | 409 |
Accounts receivable, net | 927 | 894 |
Inventories, net | 2,148 | 2,134 |
Other current assets | 546 | 565 |
Total current assets | 6,880 | 7,864 |
Non-current assets: | ||
Other non-current assets | 2,290 | 2,289 |
Property, plant and equipment, net of accumulated depreciation of $5,902 and $5,660 | 3,289 | 3,323 |
Identified intangible assets, net of accumulated amortization of $972 and $1,342 | 796 | 922 |
Goodwill | 9,941 | 9,955 |
Total non-current assets | 16,316 | 16,489 |
Total assets | 23,196 | 24,353 |
Current liabilities: | ||
Accounts payable | 929 | 1,164 |
Restructuring liabilities-current | 62 | 92 |
Other current liabilities | 1,622 | 1,855 |
Short-term debt | 499 | 1,000 |
Total current liabilities | 3,112 | 4,111 |
Non-current liabilities: | ||
Long-term debt | 9,681 | 10,175 |
Restructuring liabilities | 7 | 9 |
Deferred tax liabilities | 48 | 44 |
Other non-current liabilities | 1,003 | 1,054 |
Total non-current liabilities | 10,739 | 11,282 |
Total liabilities | 13,851 | 15,393 |
Equity: | ||
Non-controlling interests | 327 | 316 |
Stockholders’ equity: | ||
Common stock, par value €0.20 per share: | 56 | 56 |
Capital in excess of par value | 14,730 | 14,501 |
Treasury shares, at cost : 36,518,520 shares (2019: 34,082,242 shares) | (3,762) | (3,210) |
Accumulated other comprehensive income (loss) | 30 | 90 |
Accumulated deficit | (2,036) | (2,793) |
Total stockholders’ equity | 9,018 | 8,644 |
Total equity | 9,345 | 8,960 |
Total liabilities and equity | $ 23,196 | $ 24,353 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) $ in Millions | Jun. 30, 2024 USD ($) shares | Jun. 30, 2024 € / shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 € / shares |
Statement of Financial Position [Abstract] | ||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment, Period Increase (Decrease) | $ 5,902 | $ 5,660 | ||
Accumulated amortization | $ (972) | $ (1,342) | ||
Common stock, par value (in euros per share) | € / shares | € 0.20 | € 0.20 | ||
Treasury shares (in shares) | shares | 19,543,790 | 17,329,585 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,308 | $ 1,327 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 448 | 564 |
Share-based compensation | 229 | 201 |
Amortization of discount (premium) on debt, net | 2 | 1 |
Amortization of debt issuance costs | 3 | 4 |
Net (gain) loss on sale of assets | (2) | (1) |
(Gain) loss on equity security, net | 5 | (5) |
Results relating to equity-accounted investees | 4 | 3 |
Deferred tax expense (benefit) | (87) | (137) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in receivables and other current assets | (15) | (158) |
(Increase) decrease in inventories | (14) | (325) |
Increase (decrease) in accounts payable and other liabilities | (322) | (92) |
Decrease (increase) in other non-current assets | 46 | 0 |
Exchange differences | 8 | 10 |
Other items | (1) | (4) |
Net cash provided by (used for) operating activities | 1,612 | 1,388 |
Cash flows from investing activities: | ||
Purchase of identified intangible assets | (87) | (93) |
Capital expenditures on property, plant and equipment | (411) | (452) |
Insurance recoveries received for equipment damage | 2 | 0 |
Proceeds from disposals of property, plant and equipment | 3 | 1 |
Proceeds from Sale of Short-Term Investments | 9 | 0 |
Purchase of investments | (34) | (62) |
Proceeds from sale of investments | 5 | 0 |
Net cash provided by (used for) investing activities | (513) | (606) |
Cash flows from financing activities: | ||
Repayments of Notes Payable | (1,000) | 0 |
Dividends paid to common stockholders | (521) | (483) |
Proceeds from issuance of common stock through stock plans | 40 | 34 |
Purchase of treasury shares and restricted stock unit withholdings | (613) | (313) |
Proceeds from (Payments for) Other Financing Activities | (1) | (1) |
Net cash provided by (used for) financing activities | (2,095) | (763) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (7) | (1) |
Increase (decrease) in cash and cash equivalents | (1,003) | 18 |
Cash and cash equivalents at beginning of period | 3,862 | 3,845 |
Cash and cash equivalents at end of period | 2,859 | 3,863 |
Net cash paid during the period for: | ||
Interest | 124 | 140 |
Income taxes, net of refunds | 391 | 533 |
Cash proceeds from the sale of assets | 3 | 1 |
WrittenDownValueOfAssetsSold | (1) | 0 |
Non-cash capital expenditures | $ 166 | $ 165 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common stock | Capital in excess of par value | Treasury shares at cost | AOCI Attributable to Parent [Member] | Accumu- lated deficit | Total stock- holders’ equity | Non- con- trolling interests |
Shares, Issued, Beginning Balance at Dec. 31, 2022 | 259,463 | |||||||
Beginning balance at Dec. 31, 2022 | $ 7,740 | $ 56 | $ 14,091 | $ (2,799) | $ 76 | $ (3,975) | $ 7,449 | $ 291 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 623 | 615 | 615 | 8 | ||||
Other comprehensive income (loss) | 22 | 22 | 22 | |||||
Share-based compensation plans | 101 | 101 | 101 | |||||
Shares issued pursuant to stock awards (in shares) | 309 | |||||||
Shares issued pursuant to stock awards | 33 | 61 | (28) | 33 | ||||
Treasury share repurchase and retired (in shares) | (37) | |||||||
Treasury shares repurchased and retired | $ (7) | (7) | (7) | |||||
Dividends common stock (in dollars per share) | $ 1.014 | |||||||
Dividends common stock | $ (264) | (264) | (264) | |||||
Balance (in shares) at Apr. 02, 2023 | 259,735 | |||||||
Ending balance at Apr. 02, 2023 | 8,248 | $ 56 | 14,192 | (2,745) | 98 | (3,652) | 7,949 | 299 |
Shares, Issued, Beginning Balance at Dec. 31, 2022 | 259,463 | |||||||
Beginning balance at Dec. 31, 2022 | 7,740 | $ 56 | 14,091 | (2,799) | 76 | (3,975) | 7,449 | 291 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 1,327 | |||||||
Other comprehensive income (loss) | 11 | |||||||
Balance (in shares) at Jul. 02, 2023 | 258,125 | |||||||
Ending balance at Jul. 02, 2023 | 8,477 | $ 56 | 14,291 | (3,034) | 87 | (3,228) | 8,172 | 305 |
Shares, Issued, Beginning Balance at Apr. 02, 2023 | 259,735 | |||||||
Beginning balance at Apr. 02, 2023 | 8,248 | $ 56 | 14,192 | (2,745) | 98 | (3,652) | 7,949 | 299 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 704 | 698 | 698 | 6 | ||||
Other comprehensive income (loss) | (11) | (11) | (11) | |||||
Share-based compensation plans | 99 | 99 | 99 | |||||
Shares issued pursuant to stock awards (in shares) | 71 | |||||||
Shares issued pursuant to stock awards | 1 | 13 | (12) | 1 | ||||
Treasury share repurchase and retired (in shares) | (1,681) | |||||||
Treasury shares repurchased and retired | $ (302) | (302) | (302) | |||||
Dividends common stock (in dollars per share) | $ 1.014 | |||||||
Dividends common stock | $ (262) | (262) | (262) | |||||
Balance (in shares) at Jul. 02, 2023 | 258,125 | |||||||
Ending balance at Jul. 02, 2023 | 8,477 | $ 56 | 14,291 | (3,034) | 87 | (3,228) | 8,172 | 305 |
Shares, Issued, Beginning Balance at Dec. 31, 2023 | 257,190 | |||||||
Beginning balance at Dec. 31, 2023 | 8,960 | $ 56 | 14,501 | (3,210) | 90 | (2,793) | 8,644 | 316 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 644 | 639 | 639 | 5 | ||||
Other comprehensive income (loss) | (46) | (46) | (46) | |||||
Share-based compensation plans | 118 | 118 | 118 | |||||
Shares issued pursuant to stock awards (in shares) | 228 | |||||||
Shares issued pursuant to stock awards | 37 | 44 | (7) | 37 | ||||
Treasury share repurchase and retired (in shares) | (1,323) | |||||||
Treasury shares repurchased and retired | $ (303) | (303) | (303) | |||||
Dividends common stock (in dollars per share) | $ 1.014 | |||||||
Dividends common stock | $ (260) | (260) | (260) | |||||
Balance (in shares) at Mar. 31, 2024 | 256,095 | |||||||
Ending balance at Mar. 31, 2024 | 9,150 | $ 56 | 14,619 | (3,469) | 44 | (2,421) | 8,829 | 321 |
Shares, Issued, Beginning Balance at Dec. 31, 2023 | 257,190 | |||||||
Beginning balance at Dec. 31, 2023 | 8,960 | $ 56 | 14,501 | (3,210) | 90 | (2,793) | 8,644 | 316 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 1,308 | |||||||
Other comprehensive income (loss) | (60) | |||||||
Balance (in shares) at Jun. 30, 2024 | 254,976 | |||||||
Ending balance at Jun. 30, 2024 | 9,345 | $ 56 | 14,730 | (3,762) | 30 | (2,036) | 9,018 | 327 |
Shares, Issued, Beginning Balance at Mar. 31, 2024 | 256,095 | |||||||
Beginning balance at Mar. 31, 2024 | 9,150 | $ 56 | 14,619 | (3,469) | 44 | (2,421) | 8,829 | 321 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 664 | 658 | 658 | 6 | ||||
Other comprehensive income (loss) | (14) | (14) | (14) | |||||
Share-based compensation plans | 111 | 111 | 111 | |||||
Shares issued pursuant to stock awards (in shares) | 89 | |||||||
Shares issued pursuant to stock awards | 3 | 17 | (14) | 3 | ||||
Treasury share repurchase and retired (in shares) | (1,208) | |||||||
Treasury shares repurchased and retired | $ (310) | (310) | (310) | |||||
Dividends common stock (in dollars per share) | $ 1.014 | |||||||
Dividends common stock | $ (259) | (259) | (259) | |||||
Balance (in shares) at Jun. 30, 2024 | 254,976 | |||||||
Ending balance at Jun. 30, 2024 | $ 9,345 | $ 56 | $ 14,730 | $ (3,762) | $ 30 | $ (2,036) | $ 9,018 | $ 327 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Apr. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends common stock (in dollars per share) | $ 1.014 | $ 1.014 | $ 1.014 | $ 1.014 | ||||
Net income (loss) | $ 664 | $ 644 | $ 704 | $ 623 | $ 1,308 | $ 1,327 | ||
Other comprehensive income (loss) | (14) | (46) | (11) | 22 | (60) | 11 | ||
Share-based compensation plans | 111 | 118 | 99 | 101 | ||||
Shares issued pursuant to stock awards | 3 | 37 | 1 | 33 | ||||
Treasury shares repurchased and retired | (310) | (303) | (302) | (7) | ||||
Dividends common stock | (259) | (260) | (262) | (264) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 9,345 | $ 9,150 | $ 8,477 | $ 8,248 | $ 9,345 | $ 8,477 | $ 8,960 | $ 7,740 |
Basis of Presentation and Overv
Basis of Presentation and Overview | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Overview | Basis of Presentation and Overview We prepared our interim condensed consolidated financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended December 31, 2023. We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Recent Accounting Pronouncements | Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies For a discussion of our significant accounting policies see, “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – “Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended December 31, 2023. Recent accounting standards Accounting standards not yet adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, requiring disclosure of certain incremental segment information on an annual and interim basis, including (among other items) additional disclosure about significant segment expenses and that a public entity that has a single reportable segment provide all the disclosures required by this ASU. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We will adopt ASU 2023-07 for our annual periods starting in fiscal year 2024 (and interim periods thereafter) on a retrospective basis and continue to evaluate the impact on our disclosures. In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requiring to disclose annually certain additional disaggregated income tax information related to the effective tax rate reconciliation and income taxes paid, among other items. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We will adopt the new requirements starting for our annual period starting in 2025 and continue to evaluate the basis of adoption and impact on our disclosures. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Statement of Operations Information: Disaggregation of revenue The following table presents revenue disaggregated by sales channel: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Distributors 1,804 1,679 3,543 3,170 Original Equipment Manufacturers and Electronic Manufacturing Services 1,294 1,596 2,649 3,190 Other 29 24 61 60 Total Revenue 3,127 3,299 6,253 6,420 Depreciation, amortization and impairment For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Depreciation of property, plant and equipment 146 162 291 322 Amortization of internal use software 7 5 14 9 Amortization of other identified intangible assets 60 114 143 233 Total - Depreciation, amortization and impairment 213 281 448 564 Effective January 2024, we increased the estimated useful lives of certain manufacturing equipment from 5 to 10 years. This change has resulted in an insignificant increase in gross margin in the first two quarters of 2024 when compared to what would have been the impact using the estimated useful life in place prior to this change. Financial income and expense For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Interest income 39 43 89 85 Interest expense (97) (109) (202) (220) Total other financial income/ (expense) (17) (8) (32) (21) Total (75) (74) (145) (156) Earnings per share The computation of earnings per share (EPS) is presented in the following table: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net income (loss) 664 704 1,308 1,327 Less: net income (loss) attributable to non-controlling interests 6 6 11 14 Net income (loss) attributable to stockholders 658 698 1,297 1,313 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 255,478 259,160 256,023 259,369 Plus incremental shares from assumed conversion of: Options 1) 157 189 165 197 Restricted Share Units, Performance Share Units and Equity Rights 2) 3,097 1,954 2,775 1,712 Dilutive potential common shares 3,254 2,143 2,940 1,909 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 258,732 261,303 258,963 261,278 EPS attributable to stockholders in $: Basic net income (loss) 2.58 2.69 5.07 5.06 Diluted net income (loss) 2.54 2.67 5.01 5.03 1) There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q2 2024 and YTD 2024 (Q2 2023 and YTD 2023: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices were greater than the weighted average number of shares underlying outstanding stock options. 2) There were no unvested RSUs, PSUs and equity rights that were outstanding in Q2 2024 and YTD 2024 (Q2 2023 and YTD 2023: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense were greater than the weighted average number of outstanding unvested RSUs, PSUs and equity rights or the performance goal has not been met yet. Balance Sheet Information Cash and cash equivalents At June 30, 2024 and December 31, 2023, our cash balance was $2,859 million and $3,862 million, respectively, of which $241 million and $214 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 both first six months of 2024 and 2023, no dividends were declared by SSMC. Inventories Inventories are summarized as follows: June 30, 2024 December 31, 2023 Raw materials 103 113 Work in process 1,568 1,633 Finished goods 477 388 2,148 2,134 The amounts recorded above are net of allowance for obsolescence of $185 million as of June 30, 2024 (December 31, 2023: $189 million). Equity Investments At June 30, 2024 and December 31, 2023, the total carrying value of investments in equity securities is summarized as follows: June 30, 2024 December 31, 2023 Marketable equity securities 7 12 Non-marketable equity securities 66 55 Equity-accounted investments 117 101 190 168 The total carrying value of investments in equity-accounted investees is summarized as follows: June 30, 2024 December 31, 2023 Shareholding % Amount Shareholding % Amount SMART Growth Fund, L.P. 8.41 % 41 8.41 % 42 SigmaSense, LLC 10.64 % 31 10.64 % 33 Others — 45 — 26 117 101 Results related to equity-accounted investees at the end of each period were as follows: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Company's share in income (loss) (3) (1) (5) (3) Other results — — 1 — (3) (1) (4) (3) Other current liabilities Other current liabilities at June 30, 2024 and December 31, 2023 consisted of the following: June 30, 2024 December 31, 2023 Accrued compensation and benefits 402 500 Customer programs 307 280 Income taxes payable 122 170 Dividend payable 259 261 Other 532 644 1,622 1,855 Accumulated other comprehensive income (loss) Total comprehensive income (loss) represents net income (loss) plus the results of certain equity changes not reflected in the condensed consolidated statements of operations. The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below: Currency Change in Net actuarial Accumulated As of December 31, 2023 177 1 (88) 90 Other comprehensive income (loss) before (54) (20) 2 (72) Amounts reclassified out of accumulated other — 9 — 9 Tax effects — 3 — 3 Other comprehensive income (loss) (54) (8) 2 (60) As of June 30, 2024 123 (7) (86) 30 Cash dividends The following dividends were declared during the first six months of 2024 and 2023 under NXP’s quarterly dividend program: Fiscal Year 2024 Fiscal Year 2023 Dividend per share Amount Dividend per share Amount First quarter 1.014 260 1.014 263 Second quarter 1.014 259 1.014 263 The dividend declared in the second quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of June 30, 2024 and was subsequently paid on July 10, 2024. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring At each reporting date, we evaluate our restructuring liabilities, which consist primarily of termination benefits, to ensure that our accruals are still appropriate. The following table presents the changes in restructuring liabilities in 2024: As of January 1, 2024 Additions Utilized Released Other As of June 30, 2024 Restructuring liabilities 101 18 (45) (4) (1) 69 The total restructuring liability as of June 30, 2024 of $69 million is classified in the consolidated balance sheet under current liabilities ($62 million) and non-current liabilities ($7 million). The restructuring charges for the six-month period ending June 30, 2024 consist of $17 million for personnel related costs for specific targeted actions, offset by a $4 million release for earlier programs. The restructuring charges for the six-month period ending July 2, 2023 consist of $21 million for personnel related costs for a restructuring program in 2023, offset by a $3 million release for an earlier program. These restructuring charges recorded in operating income, for the periods indicated, are included in the following line items in the statement of operations: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Cost of revenue 4 — 7 (2) Research and development 4 — 7 14 Selling, general and administrative (2) — (1) 6 Net restructuring charges 6 — 13 18 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Tax Each year NXP makes an estimate of its annual effective tax rate. This estimated annual effective tax rate ("EAETR") is then applied to the year-to-date Income (loss) before income taxes excluding discrete items, to determine the year-to-date benefit (provision) for income taxes. The income tax effects of any discrete items are recognized in the interim period in which they occur. As the year progresses, the Company continually refines the EAETR based upon actual events and the apportionment of our earnings (loss). This continual estimation process periodically may result in a change to our EAETR for the year. When this occurs, we adjust on an accumulated basis the benefit (provision) for income taxes during the quarter in which the change occurs. Our provision for income taxes for 2024 is based on our EAETR of 17.8%, which is lower than the Netherlands statutory tax rate of 25.8%, primarily due to tax benefits from the Netherlands and foreign tax incentives. For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Tax benefit (provision) calculated at EAETR (147) (147) (286) (273) Discrete tax benefit (provision) items (7) (11) (9) (3) Benefit (provision) for income taxes (154) (158) (295) (276) Effective tax rate 18.8 % 18.3 % 18.4 % 17.2 % The effective tax rate of 18.8% for the second quarter of 2024 was higher than the EAETR due to the income tax expense for discrete items of $7 million. The discrete items are primarily related to changes in estimates for previous years, and the impact of foreign currency on income tax related items. In addition to this, there was a recapture of tax expense of $1 million due to a higher EAETR compared to prior quarter. For the first six months ended 2024 the effective tax rate of 18.4% was higher than 17.8% due to a net result of unfavorable discrete items of $9 million. The effective tax rate of 18.4% for the first six months of 2024 was higher compared to the rate for the first six months ended 2023 of 17.2% due to a different mix of the benefit (provision) for income taxes in the locations that we operate in, lower foreign tax incentives in the current period as a result of a decrease in qualifying income, newly enacted alternative minimum tax law as per 2024, and also due to the impact of the discrete items in the respective periods. |
Identified Intangible Assets
Identified Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | Identified Intangible Assets Identified intangible assets as of June 30, 2024 and December 31, 2023, respectively, were composed of the following: June 30, 2024 December 31, 2023 Gross Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 33 — 70 — Customer-related 791 (377) 788 (352) Technology-based 944 (595) 1,406 (990) Identified intangible assets 1,768 (972) 2,264 (1,342) 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: 2024 (remaining) 137 2025 178 2026 97 2027 69 2028 63 Thereafter 252 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 5 years as of June 30, 2024 (December 31, 2023: 4 years) . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the outstanding debt as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Maturities Amount Interest rate Amount Interest Fixed-rate 4.875% senior unsecured notes Mar, 2024 — 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 4.400 500 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 5.0% senior unsecured notes Jan, 2033 1,000 5.000 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 10,250 11,250 Unamortized discounts, premiums and debt (70) (75) Total debt, including unamortized discounts, 10,180 11,175 Current portion of long-term debt (499) (1,000) Long-term debt 9,681 10,175 |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions The Company's related parties are the members of the board of directors of NXP Semiconductors N.V., the executive officers of NXP Semiconductors N.V. and equity-accounted investees. The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Revenue and other income 1 1 2 2 Purchase of goods and services 1 1 2 1 The following table presents the amounts related to receivable and payable balances with these related parties: June 30, 2024 December 31, 2023 Receivables — 1 Payables 3 7 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the estimated fair value of our financial instruments which are measured at fair value on a recurring basis: Estimated fair value Fair value June 30, 2024 December 31, 2023 Assets: Short-term deposits 1 400 409 Money market funds 1 2,033 3,137 Marketable equity securities 1 7 12 Derivative instruments-assets 2 2 12 Liabilities: Derivative instruments-liabilities 2 (12) (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 short-term deposits, representing liquid assets with original maturity beyond three months and having no significant risk of changes in fair value, are represented at carrying value as reasonable estimates of fair value due to the relatively short period of time between the origination of the instruments and their expected realization. Money market funds (as part of our cash and cash equivalents) and marketable equity securities (as part of other non-current assets) have fair value measurements which are all based on quoted prices in active markets for identical assets or liabilities. For derivatives (as part of other current assets or accrued liabilities) the fair value is based upon significant other observable inputs depending on the nature of the derivative. Assets and liabilities recorded at fair value on a non-recurring basis We measure and record our non-marketable equity securities, equity method investments and non-financial assets, such as intangible assets and property, plant and equipment, at fair value when an impairment charge is required. Assets and liabilities not recorded at fair value on a recurring basis Financial instruments not recorded at fair value on a recurring basis include non-marketable equity securities and equity method investments that have not been remeasured or impaired in the current period and debt. As of June 30, 2024, the estimated fair value of current and non-current debt was $9.1 billion ($10.3 billion as of December 31, 2023). The fair value is estimated on the basis of broker-dealer quotes, which are Level 2 inputs. Accrued interest is included under accrued liabilities and not within the carrying amount or estimated fair value of debt. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Purchase Commitments The Company maintains purchase commitments with certain suppliers, primarily for raw materials, semi-finished goods and manufacturing services and for some non-production items. Purchase commitments for inventory materials are generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time-horizon can vary for different suppliers. As of June 30, 2024, the Company had purchase commitments of $3,899 million, which are due through 2044 . Legal Proceedings We are regularly involved as plaintiffs or defendants in claims and litigation relating to a variety of matters such as contractual disputes, personal injury claims, employee grievances and intellectual property litigation. In addition, our acquisitions, divestments and financial transactions sometimes result in, or are followed by, claims or litigation. Some of these claims may possibly be recovered from insurance reimbursements. Although the ultimate disposition of asserted claims cannot be predicted with certainty, it is our belief that the outcome of any such claims, either individually or on a combined basis, will not have a material adverse effect on our consolidated financial position. However, such outcomes may be material to our condensed consolidated statement of operations for a particular period. The Company records an accrual for any claim that arises whenever it considers that it is probable that it is exposed to a loss contingency and the amount of the loss contingency can be reasonably estimated. The Company does not record a gain contingency until the period in which all contingencies are resolved and the gain is realized or realizable. Legal fees are expensed when incurred. Motorola Personal Injury Lawsuits 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 21 individuals. The Motorola suits allege exposures between 1980 and 2005. Each claim seeks an unspecified amount of damages for the alleged injuries; however, legal counsel representing the plaintiffs has indicated they will seek substantial compensatory and punitive damages from Motorola for the entire inventory of claims which, if proven and recovered, the Company considers to be material. 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. Legal Proceedings Related Accruals and Insurance Coverage The Company 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 most current information available to it and based on its best estimate. Based on the procedures described above, the Company has an aggregate amount of $95 million accrued for potential and current legal proceedings pending as of June 30, 2024, compared to $112 million accrued at December 31, 2023 (without reduction for any related insurance reimbursements). The accruals are included in “Other current liabilities” and in “Other non-current liabilities”. As of June 30, 2024, the Company’s related balance of insurance reimbursements was $67 million (December 31, 2023: $67 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 June 30, 2024, the Company believes that for all litigation pending its potential aggregate exposure to loss in excess of the amount accrued (without reduction for any amounts that may possibly be recovered under insurance programs) could range between $0 and $93 million. Based upon our past experience with these matters, the Company would expect to receive additional insurance reimbursement of up to $70 million on certain of these claims that would partially offset the potential aggregate exposure to loss in excess of the amount accrued. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) attributable to stockholders | $ 658 | $ 698 | $ 1,297 | $ 1,313 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Jennifer wuamett [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Rule 10b5-1 Trading Plans On June 6, 2024, Jennifer Wuamett, Executive Vice President, General Counsel, Corporate Secretary and Chief Sustainability Officer of the Company, entered into a Rule 10b5-1 Trading Plan (the “Plan”), pursuant to which a maximum amount of 16,553 common shares of the Company may be sold under the Plan from September 17, 2024 through July 25, 2025. The Plan terminates on the earlier of: (i) July 25, 2025, (ii) the first date on which all trades set forth in the Plan have been executed, or (iii) such date the Plan is otherwise terminated according to its terms. | |
Name | Jennifer Wuamett | |
Title | Executive Vice President, General Counsel, Corporate Secretary and Chief Sustainability Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 6, 2024 | |
Arrangement Duration | 311 days | |
Aggregate Available | 16,553 | 16,553 |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Recently adopted accounting pronouncements | Recent accounting standards Accounting standards not yet adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, requiring disclosure of certain incremental segment information on an annual and interim basis, including (among other items) additional disclosure about significant segment expenses and that a public entity that has a single reportable segment provide all the disclosures required by this ASU. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We will adopt ASU 2023-07 for our annual periods starting in fiscal year 2024 (and interim periods thereafter) on a retrospective basis and continue to evaluate the impact on our disclosures. In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requiring to disclose annually certain additional disaggregated income tax information related to the effective tax rate reconciliation and income taxes paid, among other items. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We will adopt the new requirements starting for our annual period starting in 2025 and continue to evaluate the basis of adoption and impact on our disclosures. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of revenue | The following table presents revenue disaggregated by sales channel: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Distributors 1,804 1,679 3,543 3,170 Original Equipment Manufacturers and Electronic Manufacturing Services 1,294 1,596 2,649 3,190 Other 29 24 61 60 Total Revenue 3,127 3,299 6,253 6,420 |
Depreciation Amortization And Impairment Charges [Table Text Block] | For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Depreciation of property, plant and equipment 146 162 291 322 Amortization of internal use software 7 5 14 9 Amortization of other identified intangible assets 60 114 143 233 Total - Depreciation, amortization and impairment 213 281 448 564 |
Schedule of financial income and expense | For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Interest income 39 43 89 85 Interest expense (97) (109) (202) (220) Total other financial income/ (expense) (17) (8) (32) (21) Total (75) (74) (145) (156) |
Schedule of earnings per share | The computation of earnings per share (EPS) is presented in the following table: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net income (loss) 664 704 1,308 1,327 Less: net income (loss) attributable to non-controlling interests 6 6 11 14 Net income (loss) attributable to stockholders 658 698 1,297 1,313 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 255,478 259,160 256,023 259,369 Plus incremental shares from assumed conversion of: Options 1) 157 189 165 197 Restricted Share Units, Performance Share Units and Equity Rights 2) 3,097 1,954 2,775 1,712 Dilutive potential common shares 3,254 2,143 2,940 1,909 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 258,732 261,303 258,963 261,278 EPS attributable to stockholders in $: Basic net income (loss) 2.58 2.69 5.07 5.06 Diluted net income (loss) 2.54 2.67 5.01 5.03 1) There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q2 2024 and YTD 2024 (Q2 2023 and YTD 2023: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices were greater than the weighted average number of shares underlying outstanding stock options. 2) There were no unvested RSUs, PSUs and equity rights that were outstanding in Q2 2024 and YTD 2024 (Q2 2023 and YTD 2023: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense were greater than the weighted average number of outstanding unvested RSUs, PSUs and equity rights or the performance goal has not been met yet. |
Schedule of inventories | Inventories are summarized as follows: June 30, 2024 December 31, 2023 Raw materials 103 113 Work in process 1,568 1,633 Finished goods 477 388 2,148 2,134 |
Marketable Securities | At June 30, 2024 and December 31, 2023, the total carrying value of investments in equity securities is summarized as follows: June 30, 2024 December 31, 2023 Marketable equity securities 7 12 Non-marketable equity securities 66 55 Equity-accounted investments 117 101 190 168 |
Summary of Carrying Value of Investments in Equity-Accounted Investees | The total carrying value of investments in equity-accounted investees is summarized as follows: June 30, 2024 December 31, 2023 Shareholding % Amount Shareholding % Amount SMART Growth Fund, L.P. 8.41 % 41 8.41 % 42 SigmaSense, LLC 10.64 % 31 10.64 % 33 Others — 45 — 26 117 101 |
Results Relating to Equity-Accounted Investees | Results related to equity-accounted investees at the end of each period were as follows: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Company's share in income (loss) (3) (1) (5) (3) Other results — — 1 — (3) (1) (4) (3) |
Other Current Liabilities | Other current liabilities at June 30, 2024 and December 31, 2023 consisted of the following: June 30, 2024 December 31, 2023 Accrued compensation and benefits 402 500 Customer programs 307 280 Income taxes payable 122 170 Dividend payable 259 261 Other 532 644 1,622 1,855 |
Schedule of accumulated other comprehensive income (loss) | The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below: Currency Change in Net actuarial Accumulated As of December 31, 2023 177 1 (88) 90 Other comprehensive income (loss) before (54) (20) 2 (72) Amounts reclassified out of accumulated other — 9 — 9 Tax effects — 3 — 3 Other comprehensive income (loss) (54) (8) 2 (60) As of June 30, 2024 123 (7) (86) 30 |
Schedule of cash dividends | The following dividends were declared during the first six months of 2024 and 2023 under NXP’s quarterly dividend program: Fiscal Year 2024 Fiscal Year 2023 Dividend per share Amount Dividend per share Amount First quarter 1.014 260 1.014 263 Second quarter 1.014 259 1.014 263 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table presents the changes in restructuring liabilities in 2024: As of January 1, 2024 Additions Utilized Released Other As of June 30, 2024 Restructuring liabilities 101 18 (45) (4) (1) 69 These restructuring charges recorded in operating income, for the periods indicated, are included in the following line items in the statement of operations: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Cost of revenue 4 — 7 (2) Research and development 4 — 7 14 Selling, general and administrative (2) — (1) 6 Net restructuring charges 6 — 13 18 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefits) and Effective Tax Rates | For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Tax benefit (provision) calculated at EAETR (147) (147) (286) (273) Discrete tax benefit (provision) items (7) (11) (9) (3) Benefit (provision) for income taxes (154) (158) (295) (276) Effective tax rate 18.8 % 18.3 % 18.4 % 17.2 % |
Identified Intangible Assets (T
Identified Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identified Intangible Assets | Identified intangible assets as of June 30, 2024 and December 31, 2023, respectively, were composed of the following: June 30, 2024 December 31, 2023 Gross Accumulated Gross carrying Accumulated In-process R&D (IPR&D) 1) 33 — 70 — Customer-related 791 (377) 788 (352) Technology-based 944 (595) 1,406 (990) Identified intangible assets 1,768 (972) 2,264 (1,342) 1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort. |
Schedule of Estimated Amortization Expense | The estimated amortization expense for these identified intangible assets for each of the five succeeding years is: 2024 (remaining) 137 2025 178 2026 97 2027 69 2028 63 Thereafter 252 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the outstanding debt as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Maturities Amount Interest rate Amount Interest Fixed-rate 4.875% senior unsecured notes Mar, 2024 — 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 4.400 500 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 5.0% senior unsecured notes Jan, 2033 1,000 5.000 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 10,250 11,250 Unamortized discounts, premiums and debt (70) (75) Total debt, including unamortized discounts, 10,180 11,175 Current portion of long-term debt (499) (1,000) Long-term debt 9,681 10,175 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: For the three months ended For the six months ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Revenue and other income 1 1 2 2 Purchase of goods and services 1 1 2 1 |
Schedule Of Amounts Receivable From And Payable To Related Parties | The following table presents the amounts related to receivable and payable balances with these related parties: June 30, 2024 December 31, 2023 Receivables — 1 Payables 3 7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following table summarizes the estimated fair value of our financial instruments which are measured at fair value on a recurring basis: Estimated fair value Fair value June 30, 2024 December 31, 2023 Assets: Short-term deposits 1 400 409 Money market funds 1 2,033 3,137 Marketable equity securities 1 7 12 Derivative instruments-assets 2 2 12 Liabilities: Derivative instruments-liabilities 2 (12) (3) |
Acquisitions and Divestments (D
Acquisitions and Divestments (Details) - business | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Business Acquisition [Line Items] | ||
Number of businesses acquired | 0 | 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,127 | $ 3,299 | $ 6,253 | $ 6,420 |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,804 | 1,679 | 3,543 | 3,170 |
Original Equipment Manufacturers and Electronic Manufacturing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,294 | 1,596 | 2,649 | 3,190 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 29 | $ 24 | $ 61 | $ 60 |
Supplemental Financial Inform_4
Supplemental Financial Information - Depreciation, amortization and impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Depreciation of property, plant and equipment | $ 146 | $ 162 | $ 291 | $ 322 |
Total - Depreciation, amortization and impairment | 213 | 281 | 448 | 564 |
Internal Use Software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 7 | 5 | 14 | 9 |
Other Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 60 | $ 114 | $ 143 | $ 233 |
Supplemental Financial Inform_5
Supplemental Financial Information - Financial income and expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest income | $ 39 | $ 43 | $ 89 | $ 85 |
Interest expense | (97) | (109) | (202) | (220) |
Total other financial income/ (expense) | (17) | (8) | (32) | (21) |
Total | $ (75) | $ (74) | $ (145) | $ (156) |
Supplemental Financial Inform_6
Supplemental Financial Information - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Apr. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net income (loss) | $ 664 | $ 644 | $ 704 | $ 623 | $ 1,308 | $ 1,327 |
Less: Net income (loss) attributable to non-controlling interests | 6 | 6 | 11 | 14 | ||
Net income (loss) attributable to stockholders | $ 658 | $ 698 | $ 1,297 | $ 1,313 | ||
Basic (in shares) | 255,478 | 259,160 | 256,023 | 259,369 | ||
Options (in shares) | 157 | 189 | 165 | 197 | ||
Restricted Share Units, Performance Share Units and Equity Rights (in shares) | 3,097 | 1,954 | 2,775 | 1,712 | ||
Dilutive potential common shares (in shares) | 3,254 | 2,143 | 2,940 | 1,909 | ||
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) (in shares) | 258,732 | 261,303 | 258,963 | 261,278 | ||
Basic net income (loss) (in dollars per share) | $ 2.58 | $ 2.69 | $ 5.07 | $ 5.06 | ||
Diluted net income (loss) (in dollars per share) | $ 2.54 | $ 2.67 | $ 5.01 | $ 5.03 | ||
Maximum | Share-based Payment Arrangement, Option | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 | ||
Maximum | Restricted Stock Units Performance Share Units And Equity Rights | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Supplemental Financial Inform_7
Supplemental Financial Information - Cash and cash equivalents (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 2,859 | $ 3,862 | |
SSMC | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 241 | $ 214 | |
Dividends | $ 0 | $ 0 | |
SSMC | TSMC | |||
Cash and Cash Equivalents [Line Items] | |||
Ownership percentage by noncontrolling owners | 38.80% |
Supplemental Financial Inform_8
Supplemental Financial Information - Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 103 | $ 113 |
Work in process | 1,568 | 1,633 |
Finished goods | 477 | 388 |
Inventory, Net | 2,148 | 2,134 |
Allowance for obsolescence | $ 185 | $ 189 |
Supplemental Financial Inform_9
Supplemental Financial Information (Details) - Equity investments - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Marketable equity securities | $ 7 | $ 12 |
Other Investments | 66 | 55 |
Equity Method Investments | 117 | 101 |
Investments | $ 190 | $ 168 |
Supplemental Financial Infor_10
Supplemental Financial Information - Other current liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jul. 02, 2023 | Apr. 02, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accrued Employee Benefits, Current | $ 402 | $ 500 | |||
Customer Funds | 307 | 280 | |||
Taxes Payable, Current | 122 | 170 | |||
Dividends Payable | 259 | $ 260 | 261 | $ 263 | $ 263 |
Other Accrued Liabilities, Current | 532 | 644 | |||
Other current liabilities | $ 1,622 | $ 1,855 |
Supplemental Financial Infor_11
Supplemental Financial Information - Accumulated other comprehensive income (loss) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 8,960 |
Other comprehensive income (loss) before reclassifications | (72) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 9 |
Other comprehensive income (loss) | 3 |
Other comprehensive income (loss) | (60) |
Ending balance | 9,345 |
Currency translation differences | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 177 |
Other comprehensive income (loss) before reclassifications | (54) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | (54) |
Ending balance | 123 |
Change in fair value cash flow hedges | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 1 |
Other comprehensive income (loss) before reclassifications | (20) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 9 |
Other comprehensive income (loss) | 3 |
Other comprehensive income (loss) | (8) |
Ending balance | (7) |
Net actuarial gain/(losses) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (88) |
Other comprehensive income (loss) before reclassifications | 2 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 0 |
Other comprehensive income (loss) | 2 |
Ending balance | (86) |
Accumulated Other Comprehensive Income (loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | 90 |
Ending balance | $ 30 |
Supplemental Financial Infor_12
Supplemental Financial Information - Cash dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Apr. 02, 2023 | Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Dividends common stock (in dollars per share) | $ 1.014 | $ 1.014 | $ 1.014 | $ 1.014 | |
Dividends Payable | $ 259 | $ 260 | $ 263 | $ 263 | $ 261 |
Supplemental Financial Infor_13
Supplemental Financial Information - Summary of carrying value of investments in equity-accounted investees (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 117 | $ 101 |
Wiseroad | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 8.41% | 8.41% |
Equity Method Investments | $ 41 | $ 42 |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 0% | 0% |
Equity Method Investments | $ 45 | $ 26 |
SigmaSense | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 10.64% | 10.64% |
Equity Method Investments | $ 31 | $ 33 |
Supplemental Financial Infor_14
Supplemental Financial Information - Results relating to equity-accounted investees (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Income Loss from Equity Method Investments Before Extraordinary Items | $ (3) | $ (1) | $ (5) | $ (3) |
Extraordinary Income Loss From Equity Method Investments | 0 | 0 | 1 | 0 |
Income (Loss) from Equity Method Investments | $ (3) | $ (1) | $ (4) | $ (3) |
Restructuring - Change in Restr
Restructuring - Change in Restructuring Reserve (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability, beginning balance | $ 101 | |
Additions | 18 | $ 21 |
Utilized | (45) | |
Released | (4) | $ (3) |
Other changes | (1) | |
Restructuring liability, ending balance | $ 69 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 6 | $ 0 | $ 13 | $ 18 |
Additions | 18 | 21 | ||
Released | (4) | $ (3) | ||
Personnel lay-off costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | $ 17 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges Recorded in Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | $ 6 | $ 0 | $ 13 | $ 18 |
Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | 4 | 0 | 7 | (2) |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | 4 | 0 | 7 | 14 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net restructuring charges | $ (2) | $ 0 | $ (1) | $ 6 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefits) and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Income Tax Disclosure [Abstract] | ||||
EstimatedEffectiveIncomeTaxRate | 17.80% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.80% | |||
IncomeTaxReconciliationIncomeTaxExpenseBeneftAtEstimatedAnnualEffectiveIncomeTaxRate | $ (147) | $ (147) | $ (286) | $ (273) |
IncomeTaxReconciliationDiscreteTaxItems | (7) | (11) | (9) | (3) |
Benefit (provision) for income taxes | $ (154) | $ (158) | $ (295) | $ (276) |
Effective Income Tax Rate Reconciliation, Percent | 18.80% | 18.30% | 18.40% | 17.20% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Income Tax Disclosure [Abstract] | ||||
EstimatedEffectiveIncomeTaxRate | 17.80% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.80% | |||
Effective Income Tax Rate Reconciliation, Percent | 18.80% | 18.30% | 18.40% | 17.20% |
IncomeTaxReconciliationDiscreteTaxItems | $ (7) | $ (11) | $ (9) | $ (3) |
IncomeTaxReconciliationRecaptureTaxEffect | $ 1 |
Identified Intangible Assets -
Identified Intangible Assets - Summary of Identified Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 1,768 | $ 2,264 |
Finite-lived intangible assets, accumulated amortization | (972) | (1,342) |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 791 | 788 |
Finite-lived intangible assets, accumulated amortization | (377) | (352) |
Technology-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 944 | 1,406 |
Finite-lived intangible assets, accumulated amortization | (595) | (990) |
In-process R&D (IPR&D) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | $ 33 | $ 70 |
Identified Intangible Assets _2
Identified Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Other Intangible Assets $ in Millions | Jun. 30, 2024 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2024 | $ 137 |
2025 | 178 |
2026 | 97 |
2027 | 69 |
2028 | 63 |
Thereafter | $ 252 |
Identified Intangible Assets _3
Identified Intangible Assets - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Expected weighted average remaining life of identified intangibles | 5 years | 4 years |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 10,250 | $ 11,250 |
Unamortized discounts, premiums and debt issuance costs | (70) | (75) |
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments | 10,180 | 11,175 |
Current portion of long-term debt | (499) | (1,000) |
Long-term debt | 9,681 | 10,175 |
Unsecured Debt | Fixed-rate 4.875% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 0 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% |
Unsecured Debt | Fixed-rate 2.7% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 2.70% | 2.70% |
Unsecured Debt | Fixed-rate 5.35% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 5.35% | 5.35% |
Unsecured Debt | Fixed-rate 3.875% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 750 | $ 750 |
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | 3.875% |
Unsecured Debt | Fixed-rate 3.15% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | 3.15% |
Unsecured Debt | Fixed-Rate 4.4% Senior Unsecured Notes, Maturing May 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% |
Unsecured Debt | Fixed-rate 5.55% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 5.55% | 5.55% |
Unsecured Debt | Fixed-rate 4.3% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.30% | 4.30% |
Unsecured Debt | Fixed-rate 3.4% senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.40% | 3.40% |
Unsecured Debt | Fixed-Rate 2.5% Senior Unsecured Notes, Maturing May 2031 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% |
Unsecured Debt | Fixed-Rate 2.65% Senior Unsecured Notes, Maturing February 2032 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | 2.65% |
Unsecured Debt | Fixed-Rate 5.0% Senior Unsecured Notes, Maturing May 2033 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% |
Unsecured Debt | Fixed-Rate 3.25% Senior Unsecured Notes, Maturing May 2041 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000 | $ 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% |
Unsecured Debt | Fixed-Rate 3.125% Senior Unsecured Notes, Maturing February 2042 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% |
Unsecured Debt | Fixed-Rate 3.25% Senior Unsecured Notes, Maturing November 2051 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% |
Revolving Credit Facility | Floating-rate revolving credit facility (RCF) | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 0 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 0% | 0% |
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) - Related Party - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Related Party Transaction [Line Items] | ||||
Revenue and other income | $ 1 | $ 1 | $ 2 | $ 2 |
Purchase of goods and services | $ 1 | $ 1 | $ 2 | $ 1 |
Related-Party Transactions - _2
Related-Party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Details) - Related Party - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Receivables | $ 0 | $ 1 |
Payables | $ 3 | $ 7 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Marketable equity securities | $ 7 | $ 12 |
Estimate of Fair Value Measurement | Level 1 | ||
Assets: | ||
Short-Term Investments | 400 | 409 |
Marketable equity securities | 7 | 12 |
Estimate of Fair Value Measurement | Level 2 | ||
Assets: | ||
Derivative instruments-assets | 2 | 12 |
Liabilities: | ||
Derivative instruments-liabilities | (12) | (3) |
Estimate of Fair Value Measurement | Money market funds | Level 1 | ||
Assets: | ||
Money market funds | $ 2,033 | $ 3,137 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 9,681 | $ 10,175 |
Level 2 | Estimate of Fair Value Measurement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt | $ 9,100 | $ 10,300 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) individual | Dec. 31, 2023 USD ($) | |
Commitments and Contingencies [Line Items] | ||
Purchase Obligation | $ 3,899 | |
Number of birth defect individuals | individual | 21 | |
Accrued potential and legal fees | $ 95 | $ 112 |
Insurance reimbursements | 67 | $ 67 |
Insurance reimbursement of claims potential maximum exposure | 70 | |
Minimum | ||
Commitments and Contingencies [Line Items] | ||
Range of possible loss | 0 | |
Maximum | ||
Commitments and Contingencies [Line Items] | ||
Range of possible loss | $ 93 |