Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Trading Symbol | NXPI |
Entity Registrant Name | NXP Semiconductors N.V. |
Entity Central Index Key | 1,413,447 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 328,702,719 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Income Statement [Abstract] | ||||||
Revenue | [1] | $ 9,407 | $ 9,256 | [2] | $ 9,498 | [2] |
Cost of revenue | (4,556) | (4,637) | (5,429) | |||
Gross profit | 4,851 | 4,619 | 4,069 | |||
Research and development | (1,700) | (1,554) | (1,560) | |||
Selling, general and administrative | (993) | (1,090) | (1,141) | |||
Amortization of acquisition-related intangible assets | (1,449) | (1,448) | (1,527) | |||
Other income (expense) | 2,001 | 1,575 | 9 | |||
Operating income (loss) | 2,710 | 2,102 | (150) | |||
Financial income (expense): | ||||||
Extinguishment of debt | (26) | (41) | (32) | |||
Other financial income (expense) | (309) | (325) | (421) | |||
Income (loss) before income taxes | 2,375 | 1,736 | (603) | |||
Benefit (provision) for income taxes | (176) | 483 | 851 | |||
Results relating to equity-accounted investees | 59 | 53 | 11 | |||
Net income (loss) | 2,258 | 2,272 | 259 | |||
Less: Net income (loss) attributable to non-controlling interests | 50 | 57 | 59 | |||
Net income (loss) attributable to stockholders | $ 2,208 | $ 2,215 | $ 200 | |||
Net income (loss) per common share attributable to stockholders in $: | ||||||
– Basic | $ 6.78 | $ 6.54 | $ 0.59 | |||
– Diluted | $ 6.72 | $ 6.41 | $ 0.58 | |||
Weighted average number of shares of common stock outstanding during the year (in thousands): | ||||||
– Basic | 325,781 | 338,646 | 338,477 | |||
– Diluted | [3] | 328,606 | 345,802 | 347,607 | ||
[1] | Revenue attributed to geographic areas is based on the customer’s shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). | |||||
[2] | As noted above, prior period amounts have not been adjusted for the impact of adopting ASC 606 under the modified retrospective method. | |||||
[3] | Stock options to purchase up to 0.1 million shares of NXP’s common stock that were outstanding in 2018 (2017: 0.1 million shares; 2016: 1.4 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,258 | $ 2,272 | $ 259 | |
Other comprehensive income (loss), net of tax: | ||||
Change in fair value cash flow hedges | [1] | (11) | 10 | 0 |
Change in foreign currency translation adjustment | [1] | (51) | 156 | (124) |
Change in net actuarial gain (loss) | 5 | (16) | (27) | |
Change in net unrealized gains (losses) available-for-sale securities | [1] | 3 | (7) | 4 |
Total other comprehensive income (loss) | (54) | 143 | (147) | |
Total comprehensive income (loss) | 2,204 | 2,415 | 112 | |
Less: Comprehensive income (loss) attributable to non-controlling interests | 50 | 57 | 59 | |
Total comprehensive income (loss) attributable to stockholders | $ 2,154 | $ 2,358 | $ 53 | |
[1] | Reclassification adjustments included in Cost of revenue, Selling, general and administrative, Research and development and Results relating to equity-accounted investees in the Consolidated Statements of Operations. |
Consolidated Balance Sheets
Consolidated Balance Sheets € in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Current assets: | ||
Cash and cash equivalents | $ 2,789 | $ 3,547 |
Accounts receivables, net | 792 | 879 |
Inventories, net | 1,279 | 1,236 |
Other current assets | 365 | 382 |
Total current assets | 5,225 | 6,044 |
Non-current assets: | ||
Other non-current assets | 545 | 981 |
Property, plant and equipment, net | 2,436 | 2,295 |
Identified intangible assets, net | 4,467 | 5,863 |
Goodwill | 8,857 | 8,866 |
Total non-current assets | 16,305 | 18,005 |
Total assets | 21,530 | 24,049 |
Current liabilities: | ||
Accounts payable | 999 | 1,146 |
Restructuring liabilities - current | 60 | 74 |
Accrued liabilities | 1,219 | 747 |
Short-term debt | 1,107 | 751 |
Total current liabilities | 3,385 | 2,718 |
Non-current liabilities: | ||
Long-term debt | 6,247 | 5,814 |
Restructuring liabilities | 5 | 15 |
Deferred tax liabilities | 450 | 701 |
Other non-current liabilities | 753 | 1,085 |
Total non-current liabilities | 7,455 | 7,615 |
Equity: | ||
Non-controlling interests | 185 | 189 |
Stockholders’ equity: | ||
Preferred stock, par value €0.20 per share: Authorized: 645,754,500 (2017: 645,754,500 shares) Issued: none | 0 | 0 |
Common stock, par value €0.20 per share: Authorized: 430,503,000 shares (2017: 430,503,000 shares) Issued and fully paid: 328,702,719 shares (2017: 346,002,862 shares) | 67 | 71 |
Capital in excess of par value | 15,460 | 15,960 |
Treasury shares, at cost: 35,913,021 shares (2017: 3,078,470 shares) | (3,238) | (342) |
Accumulated other comprehensive income (loss) | 123 | 177 |
Accumulated deficit | (1,907) | (2,339) |
Total Stockholders’ equity | 10,505 | 13,527 |
Total equity | 10,690 | 13,716 |
Total liabilities and equity | $ 21,530 | $ 24,049 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - € / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | € 0.20 | € 0.20 |
Preferred stock, Authorized shares | 645,754,500 | 645,754,500 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | € 0.20 | € 0.20 |
Common stock, Authorized shares | 430,503,000 | 430,503,000 |
Common stock, Issued and fully paid | 328,702,719 | 346,002,862 |
Treasury shares, shares | 35,913,021 | 3,078,470 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 2,258 | $ 2,272 | $ 259 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 1,987 | 2,173 | 2,205 |
Share-based compensation | 314 | 281 | 338 |
Excess tax benefits from share-based compensation plans | 0 | 0 | (5) |
Amortization of discount on debt | 42 | 40 | 34 |
Amortization of debt issuance costs | 10 | 12 | 16 |
Net (gain) loss on sale of assets | 0 | (1,615) | (11) |
(Gain) loss on extinguishment of debt | 26 | 41 | 32 |
Results relating to equity-accounted investees | (54) | (22) | (11) |
Deferred tax expense (benefit) | (211) | (797) | (925) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables and other current assets | 187 | 31 | (51) |
(Increase) decrease in inventories | (65) | (120) | 568 |
Increase (decrease) in accounts payable and accrued liabilities | (129) | 225 | (156) |
Decrease (increase) in other non-current assets | (22) | (100) | 5 |
Exchange differences | 14 | 30 | 15 |
Other items | 12 | (4) | (10) |
Net cash provided by (used for) operating activities | 4,369 | 2,447 | 2,303 |
Cash flows from investing activities: | |||
Purchase of identified intangible assets | (50) | (66) | (59) |
Capital expenditures on property, plant and equipment | (611) | (552) | (389) |
Proceeds from disposals of property, plant and equipment | 1 | 2 | 1 |
Purchase of interests in businesses, net of cash acquired | (18) | 0 | (202) |
Proceeds from sale of interests in businesses, net of cash divested | 159 | 2,682 | 20 |
Purchase of available-for-sale securities | (9) | 0 | 0 |
Proceeds from the sale of securities | 2 | 0 | 0 |
Proceeds from return of equity investment | 4 | 0 | 0 |
Other | 0 | 6 | 2 |
Net cash provided by (used for) investing activities | (522) | 2,072 | (627) |
Cash flows from financing activities: | |||
Repayments of short-term debt | (1,000) | 0 | (6) |
Proceeds from the issuance of short-term debt | 1,000 | 0 | 0 |
Amounts drawn under the revolving credit facility | 0 | 0 | 200 |
Repayments under the revolving credit facility | 0 | 0 | (200) |
Repurchase of long-term debt | (1,273) | (2,728) | (3,295) |
Principal payments on long-term debt | (1) | (16) | (38) |
Proceeds from the issuance of long-term debt | 1,997 | 0 | 3,259 |
Cash paid for debt issuance costs | (23) | 0 | (26) |
Cash paid for terminated acquisition adjustment event | (60) | 0 | 0 |
Dividends paid to non-controlling interests | (54) | (89) | (126) |
Dividends paid to common stockholders | (74) | 0 | 0 |
Cash proceeds from exercise of stock options | 39 | 233 | 115 |
Purchase of treasury shares and restricted stock unit withholdings | (5,006) | (286) | (1,280) |
Cash paid on behalf of shareholders for tax on repurchased shares | (142) | 0 | 0 |
Excess tax benefits from share-based compensation plans | 0 | 0 | 5 |
Net cash provided by (used for) financing activities | (4,597) | (2,886) | (1,392) |
Effect of changes in exchange rates on cash positions | (8) | 20 | (4) |
Increase (decrease) in cash and cash equivalents | (758) | 1,653 | 280 |
Cash and cash equivalents at beginning of period | 3,547 | 1,894 | 1,614 |
Cash and cash equivalents at end of period | 2,789 | 3,547 | 1,894 |
Net cash paid during the period for: | |||
Interest | 177 | 245 | 348 |
Income taxes | 188 | 356 | 67 |
Net gain (loss) on sale of assets: | |||
Cash proceeds from the sale of assets | 0 | 2,688 | 21 |
Book value of these assets | 0 | (1,073) | (10) |
Net (gain) loss on sale of assets | 0 | 1,615 | 11 |
ASC 606 [Member] | Receivables [Member] | |||
Non-cash adjustment related to the adoption of ASC 606: | |||
Non-cash adjustment | (36) | 0 | 0 |
ASC 606 [Member] | Inventories [Member] | |||
Non-cash adjustment related to the adoption of ASC 606: | |||
Non-cash adjustment | 22 | 0 | 0 |
Exchange of Term Loan B for Term Loan F [Member] | |||
Non-cash investing and financing information: | |||
Exchange of one Term Loan for another | $ 0 | $ 0 | $ 1,422 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Treasury Shares at Cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total Stockholders' Equity [Member] | Non-controlling Interests [Member] |
Balance at Dec. 31, 2015 | $ 11,803,000 | $ 68,000 | $ 15,150,000 | $ (342,000) | $ 181,000 | $ (3,542,000) | $ 11,515,000 | $ 288,000 |
Balance, shares at Dec. 31, 2015 | 342,003,000 | |||||||
Net income (loss) | 259,000 | 200,000 | 200,000 | 59,000 | ||||
Other comprehensive income | (147,000) | (147,000) | (147,000) | |||||
Share-based compensation plans | 336,000 | 336,000 | 336,000 | |||||
Excess tax benefits from share-based compensation plans | 21,000 | 21,000 | 21,000 | |||||
Shares issued pursuant to stock awards | 115,000 | 707,000 | (592,000) | 115,000 | ||||
Shares issued pursuant to stock awards, shares | 8,927,000 | |||||||
Treasury shares and restricted stock unit withholdings | $ (1,280,000) | $ 0 | 0 | (1,280,000) | 0 | 0 | (1,280,000) | 0 |
Treasury shares and restricted stock unit withholdings, shares | (15,537,868) | (15,538,000) | ||||||
Treasury shares, retired, shares | 0 | |||||||
Dividends non-controlling interests | $ (126,000) | (126,000) | ||||||
Reclassification of Warrants | 168,000 | 168,000 | 168,000 | |||||
Other | 7,000 | $ 3,000 | 4,000 | 7,000 | ||||
Balance at Dec. 31, 2016 | 11,156,000 | $ 71,000 | 15,679,000 | (915,000) | 34,000 | (3,934,000) | 10,935,000 | 221,000 |
Balance, shares at Dec. 31, 2016 | 335,392,000 | |||||||
Net income (loss) | 2,272,000 | 2,215,000 | 2,215,000 | 57,000 | ||||
Other comprehensive income | 143,000 | 143,000 | 143,000 | |||||
Share-based compensation plans | 281,000 | 281,000 | 281,000 | |||||
Shares issued pursuant to stock awards | 233,000 | 859,000 | (626,000) | 233,000 | ||||
Shares issued pursuant to stock awards, shares | 10,054,000 | |||||||
Treasury shares and restricted stock unit withholdings | $ (286,000) | $ 0 | 0 | (286,000) | 0 | 0 | (286,000) | 0 |
Treasury shares and restricted stock unit withholdings, shares | (2,522,589) | (2,522,000) | ||||||
Treasury shares, retired, shares | 0 | |||||||
Dividends non-controlling interests | $ (89,000) | (89,000) | ||||||
Cumulative effect adjustments | 6,000 | 6,000 | 6,000 | |||||
Balance at Dec. 31, 2017 | 13,716,000 | $ 71,000 | 15,960,000 | (342,000) | 177,000 | (2,339,000) | 13,527,000 | 189,000 |
Balance, shares at Dec. 31, 2017 | 342,924,000 | |||||||
Net income (loss) | 2,258,000 | $ 0 | 0 | 0 | 0 | 2,208,000 | 2,208,000 | 50,000 |
Other comprehensive income | (57,000) | 0 | 0 | 0 | (57,000) | 0 | (57,000) | 0 |
Share-based compensation plans | 311,000 | 0 | 311,000 | 0 | 0 | 0 | 311,000 | 0 |
Shares issued pursuant to stock awards | 39,000 | $ 0 | 0 | 457,000 | 0 | (418,000) | 39,000 | 0 |
Shares issued pursuant to stock awards, shares | 4,242,000 | |||||||
Treasury shares and restricted stock unit withholdings | $ (3,353,000) | $ 0 | 0 | (3,353,000) | 0 | 0 | (3,353,000) | 0 |
Treasury shares and restricted stock unit withholdings, shares | (54,376,181) | (37,076,000) | ||||||
Treasury shares, retired | $ (1,653,000) | $ (4,000) | (811,000) | 0 | 0 | (838,000) | (1,653,000) | 0 |
Treasury shares, retired, shares | (17,300,143) | (17,300,000) | ||||||
Shareholder tax on repurchased shares | $ (381,000) | $ 0 | 0 | 0 | 0 | (381,000) | (381,000) | 0 |
Dividends non-controlling interests | (54,000) | 0 | 0 | 0 | 0 | 0 | 0 | (54,000) |
Dividends common stock | (147,000) | 0 | 0 | 0 | 0 | (147,000) | (147,000) | 0 |
Cumulative effect adjustments | 11,000 | 0 | 0 | 0 | 3,000 | 8,000 | 11,000 | 0 |
Balance at Dec. 31, 2018 | $ 10,690,000 | $ 67,000 | $ 15,460,000 | $ (3,238,000) | $ 123,000 | $ (1,907,000) | $ 10,505,000 | $ 185,000 |
Balance, shares at Dec. 31, 2018 | 292,790,000 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | 1 The Company NXP Semiconductors N.V. (including our subsidiaries, referred to collectively herein as “NXP”, “NXP Semiconductors”, “we”, “our”, “us” and the “Company”) is a global semiconductor company incorporated in the Netherlands as a Dutch public company with limited liability (naamloze vennootschap) On December 6, 2018, NXP B.V., together with NXP Funding LLC, issued $1 billion of 4.875% Senior Unsecured Notes due March 1, 2024, $500 million of 5.350% Senior Unsecured Notes due March 1, 2026 and $500 million of 5.550% Senior Unsecured Notes due December 1, 2028. NXP used a portion of the net proceeds from the offering of these notes to repay the Bridge Loan, as described below. NXP intends to use the remaining proceeds for general corporate purposes, which may include the repurchase of additional shares of its stock. On September 19, 2018, NXP B.V., together with NXP Funding LLC, entered into a $1 billion senior unsecured bridge term credit facility agreement under which an aggregate principal amount of $1 billion of term loans (the “Bridge Loan”) was borrowed. The Bridge Loan was to mature on September 18, 2019 and the interest at a LIBOR rate plus an applicable margin of 1.5 percent. NXP used the net proceeds of the Bridge Loan for general corporate purposes as well as to finance a portion of its announced equity buy-back program. On December 6, 2018, the Bridge Loan was repaid in full, as described above. On September 10, 2018, NXP announced the initiation of a Quarterly Dividend Program under which the Company will pay a regular quarterly cash dividend. Accordingly, interim dividends of $0.25 per ordinary share were paid on October 5, 2018 and January 7, 2019. On July 26, 2018, NXP received notice from Qualcomm Incorporated (“Qualcomm”) that Qualcomm had terminated, effective immediately, the purchase agreement between NXP and an affiliate of Qualcomm following the inability to obtain the required approval for the transaction from the State Administration for Market Regulation (SAMR) of the People’s Republic of China prior to the end date stipulated by the parties under the purchase agreement. On July 26, 2018, NXP received $2 billion in termination compensation per the terms of the purchase agreement. Effective July 26, 2018, subsequent to the termination of the Purchase Agreement, the board of directors of NXP, as authorized by its annual general meeting of shareholders on June 22, 2018 (the “June 2018 AGM”), authorized the repurchase of $5 billion of the Company’s stock. Using the same authorization by the June 2018 AGM, the Board of Directors of NXP authorized the additional repurchase of approximately 15 million shares effective November 1, 2018. As of year-end 2018, NXP repurchased 54.4 million shares, for a total of approximately $5 billion. On November 16, 2018, the Company, as authorized by its June 2018 AGM, cancelled 5% (representing 17,300,143 shares) of the issued number of NXP shares. As a result, the number of issued NXP shares as per November 16, 2018 is 328,702,719 shares. On J announced an agreement to divest its Standard Products (“SP”) business to a consortium of financial investors consisting of (“JAC Capital”) and Wise Road Capital LTD (“Wise Road Capital”). On February 6, 2017, we divested SP (subsequently named “Nexperia”), receiving in cash proceeds, net of cash divested. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2 Significant Accounting Policies The Consolidated Financial Statements include the accounts of the Company together with its consolidated subsidiaries, including NXP B.V. and all entities in which the Company holds a direct or indirect controlling interest, in such a way that the Company would have the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb the losses or the right to receive benefits of the entity that could be potentially significant to the Company. Investments in companies in which the Company exercises significant influence but does not control, are accounted for using the equity method. The Company’s share of the net income of these companies is included in results relating to equity-accounted investees in the Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. 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. Certain items previously reported have been reclassified to conform to the current period presentation. 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. 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 holding company is the U.S. dollar. As of January 1, 2017, as a result of internal reorganizations, NXP changed the functional currency of the principal Netherlands subsidiary to 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 2018 1.1451 1.1794 1.1352 1.2431 2017 1.1932 1.1310 1.0474 1.1932 2016 1.0474 1.1065 1.0474 1.1423 (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 dates of the transactions or 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. 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 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 and strategy in undertaking the hedge transaction and the hedged risk, together with 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 were as follows: 2018 2017 Euro 1,100 696 Chinese renminbi 127 132 Japanese yen 21 29 Malaysian ringgit 82 89 Singapore dollar 57 64 Swiss franc 25 34 Taiwan dollar 102 122 Thai baht 75 68 Other 51 16 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 doubtful accounts 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 for collectibility based on numerous factors including objective evidence about credit-risk concentration, collective debt risk based on average historical losses, 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 market, less advance payments on work in progress. 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. Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. 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 capital leases are initially recorded at the lower of the fair value of the leased property or the present value of minimum lease payments. These assets and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. 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 units based on the relative expected fair value provided by the acquisition. We perform an annual impairment assessment in the fourth quarter of each year, 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. In the quarter following the period in which identified intangible assets become fully amortized, we remove the fully amortized balances from the gross asset and accumulated amortization amounts. We perform a quarterly review of finite-lived identified intangible assets to determine whether facts and circumstances indicate that the useful live is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability 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. Impairments, 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. We perform an annual impairment assessment in the fourth quarter of each year for indefinite-lived intangible assets, 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. 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 reacquisition 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 are expensed in the period in which they are incurred, except for in-process research and development 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. 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 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. 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. 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. 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 a 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 more than 50 percent 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 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 of the Company’s postretirement benefit plans, the measurement date is December 31, our year-end. 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. 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 and RSUs, the grant-date value, less estimated pre-vest forfeitures, is expensed on a straight-line basis over the vesting period. PSUs are expensed using a graded vesting schedule. The vesting period for stock options is generally four years, for RSUs is generally three years and PSUs is one to three years. 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. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, RSUs, PSUs and Employee Stock Purchase Plan (“ESPP”) shares. Under the treasury stock method, the amount the employee must pay for exercising share-based awards and the amount of compensation cost for future service that the Company has not yet recognized are assumed to be used to repurchase shares. 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 their subcontract manufacturers. One of our distributors accounted for 14% of our revenue in 2018, 15% in 2017 and 13% in 2016. One other distributor accounted for 10% of our revenue in 2018 and less than 10% of our revenue in 2017 and 2016. No other distributor accounted for greater than 10% of our revenue for 2018, 2017 or 2016. One OEM for which we had direct sales to accounted for 11% of our revenue in 2018, 11% in 2017 and less than 10% in 2016. No other individual OEM for which we had direct sales to accounted for more than 10% of our revenue for 2018, 2017 or 2016. Credit exposure related to NXP’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. NXP is party to certain hedge transactions related to its 2019 Cash Convertible Senior Notes. NXP is subject to the risk that the counterparties to these transactions may not be able to fulfill their obligations under these hedge transactions. NXP purchased options and issued warrants to hedge potential cash payments in excess of the principal and contractual interest related to its 2019 Cash Convertible Senior Notes, which were issued during fiscal 2014. The 2019 Cash Convertible Senior Note hedges are adjusted to fair value each reporting period and unrealized gains and losses are reflected in NXP’s Consolidated Statements of Operations. Because the fair value of the 2019 Cash Convertible Senior Notes embedded conversion derivative and the 2019 Cash Convertible Senior Notes hedges are designed to have similar offsetting values, there was no impact to NXP’s Consolidated Statements of Operations relating to these adjustments to fair value. The Company is using outside suppliers or foundries for a portion of its manufacturing capacity. We have operations in Europe and Asia subject to collective bargaining agreements which could pose a risk to the Company in the near term but we do no |
Acquisitions and Divestments
Acquisitions and Divestments | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestments | 3 Acquisitions and Divestments 2018 There were no material acquisitions during 2018. On July 10, 2018, NXP completed the sale of its 40% equity interest of Suzhou ASEN Semiconductors Co., Ltd. to J&R Holding Limited, receiving $127 million in cash proceeds. The net gain realized on the sale of $51 million is included in the Statement of Operations in the line item “Results relating to equity-accounted investees”. In June 2018, NXP completed the sale of 24% of its equity interest in WeEn to Tianjin Ruixin Semiconductor Industry Investment Centre LLP, receiving $32 million in cash proceeds. At December 31, 2018, due to the intended sale of the remaining interest in WeEn, NXP transferred the remaining holding to other current assets. 2017 There were no material acquisitions during 2017. On April 19, 2017, we sold our shares in Advanced Semiconductor Manufacturing Corporation Ltd. (ASMC), representing a 27.47 percent ownership, for a total consideration of $54 million. The gain on the sale of $31 million is included in the Statement of Operations in the line item “Results relating to equity-accounted investees”. On February 6, 2017, we divested our Standard Products (“SP”) business to a consortium of financial investors consisting of Beijing JianGuang Asset Management Co., Ltd (“JAC Capital”) and Wise Road Capital LTD (“Wise Road Capital”), receiving in cash proceeds, net of cash divested. Prior to February 6, 2017, t The gain on the sale of $1,597 million is included in the Statement of Operations in the line item “Other income (expense)” and is composed of the following: Total cash consideration 2,750 Assets held for sale (1,117 ) Cash divested (138 ) Liabilities held for sale 199 Other adjustments (69 ) Transaction costs (28 ) Gain 1,597 2016 There were no material divestments during 2016. On August 8, 2016, we acquired a business for $200 million. The total purchase price has been allocated to goodwill ($14 million), other intangible assets ($177 million), inventories ($8 million) and tangible fixed assets ($1 million). The other intangible assets relate to core technology ($172 million) with an amortization period of 7 years and existing technology ($5 million) with an amortization period of 2 years. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Information | 4 Supplemental Financial Information Statement of Operations Information Disaggregation of revenue The following table presents revenue disaggregated by sales channel: 2018 2017 1) 2016 1) Distributors 4,865 4,734 4,644 Original Equipment Manufacturers and Electronic Manufacturing Services 4,157 4,129 4,662 Other 2) 385 393 192 Total 9,407 9,256 9,498 1) As noted above, prior period amounts have not been adjusted for the impact of adopting ASC 606 under the modified retrospective method. 2) Represents revenues in Corporate and Other for other services. Depreciation, amortization and impairment Depreciation and amortization, including impairment charges, are as follows: 2018 2017 2016 Depreciation of property, plant and equipment 478 611 609 Amortization of internal use software 8 21 24 Amortization of other identified intangible assets (*) 1,501 1,541 1,572 1,987 2,173 2,205 (*) Depreciation of property, plant and equipment is primarily included in cost of revenue. Other income (expense) 2018 2017 2016 Result on disposal of businesses 39 1,572 8 Result on disposal of properties 1 1 1 Other income (expense) 1,961 2 - 2,001 1,575 9 Financial income (expense) 2018 2017 2016 Interest income 48 27 11 Interest expense (273 ) (310 ) (408 ) Total interest expense, net (225 ) (283 ) (397 ) Net gain (loss) on extinguishment of debt (26 ) (41 ) (32 ) Foreign exchange rate results (14 ) (30 ) (15 ) Miscellaneous financing costs/income, net (*) (70 ) (12 ) (9 ) Total other financial income (expense) (110 ) (83 ) (56 ) Total (335 ) (366 ) (453 ) (*) Equity-accounted investees Results related to equity-accounted investees at the end of each period were as follows: 2018 2017 2016 Company’s share in income (loss) 7 17 11 Other results 52 36 - 59 53 11 The total carrying value of investments in equity-accounted investees is summarized as follows: 2018 2017 Shareholding % Amount Shareholding % Amount ASEN - - 40 66 WeEn - - 49 65 Others 13 15 13 146 Investments in equity-accounted investees are included in Corporate and Other. In July 2018, we completed the sale of our 40% equity interest in Suzhou ASEN Semiconductors Co., Ltd., receiving $127 million in cash proceeds. In June 2018, we completed the sale of 24% of our equity interest in WeEn, receiving $32 million in cash proceeds. At December 31, 2018, due to the intended sale of the remaining interest in WeEn, NXP transferred the remaining holding to other current assets. On April 19, 2017, we sold our shares in Advanced Semiconductor Manufacturing Corporation Ltd. (ASMC), representing a 27.47 percent ownership, for a total consideration of $54 million. The gain on the sale of $31 million is included in the Statement of Operations in the line item “Results relating to equity-accounted investees”. Balance Sheet Information Cash and cash equivalents At December 31, 2018 and December 31, 2017, our cash balance was $2,789 million and $3,547 million, respectively, of which $140 million and $250 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 2018, a dividend of $139 million (2017: $228 million) has been paid by SSMC. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 5 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 2018 and 2017, there were no new restructuring programs. During 2016, we recognized $52 million of employee severance costs in our restructuring liabilities, which was primarily related to specific targeted actions. The following table presents the changes in the position of restructuring liabilities in 2018 by segment: Balance January 1, 2018 Additions Utilized Released Other changes (1) Balance December 31, 2018 HPMS 86 5 (25 ) - (4 ) 62 Corporate and Other 3 - - - - 3 89 5 (25 ) - (4 ) 65 (1) Other changes primarily related to translation differences and internal transfers. The total restructuring liability as of December 31, 2018 of $65 million is classified in the balance sheet under current liabilities ($60 million) and non-current liabilities ($5 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 2017 by segment: Balance January 1, 2017 Additions Utilized Released Other changes (1) Balance December 31, 2017 HPMS 148 7 (65 ) (16 ) 12 86 SP 3 - - - (3 ) - Corporate and Other - - - - 3 3 151 7 (65 ) (16 ) 12 89 (1) Other changes primarily related to translation differences and internal transfers. The total restructuring liability as of December 31, 2017 of $89 million is classified in the balance sheet under current liabilities ($74 million) and non-current liabilities ($15 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 less releases recorded in the liabilities in 2018, 2017 and 2016 are as follows: 2018 2017 2016 Personnel lay-off costs 4 7 52 Other exit costs 2 10 19 Release of provisions/accruals - (16 ) (3 ) Net restructuring charges 6 1 68 The restructuring charges less releases recorded in operating income are included in the following line items in the statement of operations: 2018 2017 2016 Cost of revenue - 3 18 Selling, general and administrative 7 10 9 Research & development - (12 ) 41 Other income (expense) (1 ) - - Net restructuring charges 6 1 68 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6 Income Taxes In 2018, NXP generated income before income taxes of $2,375 million (2017: income of $1,736 million; 2016: loss of $603 million). The components of income (loss) before income taxes are as follows: 2018 2017 2016 Netherlands 2,570 1,679 537 Foreign (195 ) 57 (1,140 ) 2,375 1,736 (603 ) The components of the benefit (expense) for income taxes are as follows: 2018 2017 2016 Current taxes: Netherlands (296 ) (179 ) (7 ) Foreign (91 ) (135 ) (67 ) (387 ) (314 ) (74 ) Deferred taxes: Netherlands 2 (259 ) 205 Foreign 209 1,056 720 211 797 925 Total benefit (expense) for income taxes (176 ) 483 851 A (in percentages) 2018 2017 2016 Statutory income tax in the Netherlands 25.0 25.0 25.0 Rate differential local statutory rates versus statutory rate of the Netherlands 0.8 (4.5 ) 24.2 Net change in valuation allowance 0.4 1.1 72.6 Non-deductible expenses/losses 2.7 2.2 (7.0 ) Sale of non-deductible goodwill - 3.8 - The U.S. Tax Cuts and Jobs Act (0.1 ) 1) (42.3 ) - Tax on gains related to internal corporate reorganization transaction - - (10.3 ) Netherlands tax incentives (10.6 ) (7.5 ) 17.9 Foreign tax incentives (3.7 ) (4.7 ) 13.0 Adjustments of prior years' income taxes (3.5 ) (0.3 ) 0.1 Other differences (3.6 ) (0.6 ) 5.6 Effective tax rate 7.4 % (27.8 %) 141.1 % 1) This is only relating to the 2017 income tax provision. We recorded an income tax expense of $176 million in 2018, which reflects an effective tax rate of 7.4% compared to a benefit of $483 million (27.8%) in 2017. 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, adjustments of prior years’ income taxes and the mix of income and losses in various jurisdictions. • The U.S. Tax Cuts and Jobs Act is the primary driver for the change between the two periods as a result of the one-time benefit of $734 million we received in 2017 , which only had an impact of an additional income tax benefit of $3 million in 2018. • The Netherlands tax incentives increased in 2018 due to the fact that NXP reached an agreement with the Dutch tax authorities relative to the application of the Dutch innovation box regime to the taxable income attributable to the Netherlands. In addition to this, in 2018, NXP received a break-up fee from Qualcomm of $2,000 million which helped drive a higher income before tax in 2018 than in 2017, even though in 2017 NXP had realized a gain of $1,597 million on the divestment of SP business. • The adjustments to prior years’ income taxes increased in 2018 as a result of the aforementioned agreement which is effective from January 1, 2017. As such, the Company was able to refine its estimate of the Dutch tax liability, recognizing an additional income tax benefit of $67 million in 2018. • The other differences in 2018 relate primarily to a tax benefit on the liquidation of a former investment of $45 million. On December 22, 2017, the President of the United States signed into law what is informally called the Tax Cuts and Jobs Act, a comprehensive U.S. tax reform package that was effective January 1, 2018. Under the accounting rules, companies are required to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. The effects of the Tax Cuts and Jobs Act on NXP’s 2017 Financial Statements was an income tax benefit of $734 million. In Q4 2018, the analysis of the enactment date impact of the Tax Cuts and Jobs Act was finalized. Accordingly, an additional income tax benefit of $3 million was recorded in the year ended December 31, 2018. 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 $21 million in 2018 (2017: $23 million; 2016: $24 million) . Deferred tax assets and liabilities The principal components of deferred tax assets and liabilities are presented below: 2018 2017 Operating loss and tax credit carryforwards 598 621 Disallowed interest carryforwards 117 156 Other accrued liabilities 83 100 Pensions 83 93 Share-based compensation 18 25 Restructuring liabilities 12 16 Receivables 83 71 Inventories 2 3 Other assets 2 2 Total Gross Deferred Tax Assets 998 1,087 Valuation Allowance (145 ) (140 ) Total Net Deferred Tax Assets 853 947 Intangible assets (including purchase accounting basis difference) (867 ) (1,161 ) Undistributed earnings of foreign subsidiaries (96 ) (109 ) Property, plant and equipment (including purchase accounting basis difference) (47 ) (54 ) Total Deferred Tax Liabilities (1,010 ) (1,324 ) Net Deferred Tax Position (157 ) (377 ) The classification of the deferred tax assets and liabilities in the Company’s Consolidated Balance Sheets is as follows: 2018 2017 Deferred tax assets within other non-current assets 293 324 Deferred tax liabilities within non-current liabilities (450 ) (701 ) (157 ) (377 ) 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 increased by $5 million during 2018 (2017: $13 million increase). We consider all available evidence in forming a judgement regarding the valuation allowance as of December 31, 2018, 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, 2018 tax loss carryforwards of $795 million (inclusive of $228 million of U.S. state tax losses) will expire as follows: Balance Scheduled expiration December 31, 2018 2019 2020 2021 2022 2023 2024-2028 later unlimited Tax loss carryforwards 795 22 6 1 16 3 129 181 437 The Company also has tax credit carryforwards of $571 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, 2018 2019 2020 2021 2022 2023 2024-2028 later unlimited Tax credit carryforwards 571 12 16 1 11 10 186 281 54 The net income tax payable (excluding the liability for unrecognized tax benefits) as of December 31, 2018 amounted to $154 million (2017: net income tax receivable of $59 million) and includes amounts directly receivable from or payable to tax authorities. The Company does not indefinitely reinvest the undistributed earnings of its subsidiaries. Consequently, the Company has recognized a deferred tax liability of $96 million at December 31, 2018 (2017: $109 million) for the additional income taxes and withholding taxes payable upon the future remittances of these earnings of foreign subsidiaries. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 2016 Balance as of January 1, 177 146 149 Translation differences (4 ) 4 1 Decreases from activities which are held for sale - - (7 ) Increases from tax positions taken during prior periods 7 19 1 Decreases from tax positions taken during prior periods (17 ) - (3 ) Increases from tax positions taken during current period 7 10 9 Decreases relating to settlements with the tax authorities (5 ) (2 ) (4 ) Balance as of December 31, 165 177 146 Of the total unrecognized tax benefits at December 31, 2018, $138 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 2018 amounted to a $3 million benefit (expense 2017: $6 million; 2016: $2 million). As of December 31, 2018 the Company has recognized a liability for related interest and penalties of $14 million (2017: $17 million; 2016: $12 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. The Company files income tax returns in the Netherlands, the U.S.A. and in various other foreign jurisdictions. Tax filings of our subsidiaries are routinely audited in the normal course of business by tax authorities around the world. Tax years that remain subject to examination by major tax jurisdictions: the Netherlands (2015-2017), Germany (2004-2017), USA (2005-2017), China (2008-2017), Taiwan (2013-2017), Thailand (2013-2017), Malaysia (2011-2017) and India (2004-2017). |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 7 Earnings per Share The computation of earnings per share (EPS) is presented in the following table: 2018 2017 2016 Net income (loss) 2,258 2,272 259 Less: Net income (loss) attributable to non-controlling interests 50 57 59 Net income (loss) attributable to stockholders 2,208 2,215 200 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 325,781 338,646 338,477 Plus incremental shares from assumed conversion of: Options 1) 1,145 4,517 5,582 Restricted Share Units, Performance Share Units and Equity Rights 2) 1,680 2,639 3,548 Warrants 3) - - - Dilutive potential common share 2,825 7,156 9,130 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1) 328,606 345,802 347,607 EPS attributable to stockholders in $: Basic net income (loss) 6.78 6.54 0.59 Diluted net income (loss) 6.72 6.41 0.58 1) Stock options to purchase up to 0.1 million shares of NXP’s common stock that were outstanding in 2018 (2017: 0.1 million shares; 2016: 1.4 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options . 2) Unvested RSU’s, PSU’s and equity rights of 0.9 million shares that were outstanding in 2018 (2017: 0.7 million shares; 2016: 0.9 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSU’s, PSU’s and equity rights or the performance goal has not been met . 3) Warrants to purchase up to 11.2 million shares of NXP’s common stock at a price of $132.55 per share were outstanding in 2018 (2017: 11.2 million shares at a price of $133.32; 2016: 11.2 million shares at a price of $133.32). Upon exercise, the warrants will be net share settled. At the end of 2018, 2017 and 2016, the warrants were not included in the computation of diluted EPS because the warrants’ exercise price was greater than the average fair market value of the common shares . |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | 8 Share-based Compensation Share-based compensation expense is included in the following line items in our statement of operations: 2018 2017 2016 Cost of revenue 40 33 49 Research and development 133 122 123 Selling, general and administrative 141 126 166 314 281 338 The income tax (expense) benefit recognized in net income related to share-based compensation expenses was $27 million (includes $4 million of excess tax benefits), $51 million (includes $27 million of excess tax benefits) and $58 million for the years ended December 31, 2018, 2017 and 2016, respectively. Long Term Incentive Plans (LTIP’s) 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. On July 26, 2018, the Company granted PSU awards to certain executives of the Company with a performance measure of Relative Total Shareholder Return (“Relative TSR”). Each PSU, which 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 Company estimates the fair value of the PSUs using a Monte Carlo valuation model, utilizing assumptions underlying the Black-Scholes methodology. The grant date fair value was $121.37 per PSU. The fair value of the PSUs is recognized as compensation cost over the service period of 3 years. 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 of resulting from a significant reduction in either the nature or scope of duties and responsibilities, a reduction in compensation or a required relocation. A charge of $307 million was recorded in 2018 for the LTIP (2017: $272 million; 2016: $331 million). A summary of the activity for our LTIP’s during 2018 is presented below. Stock options The options have a strike price equal to the closing share price on the grant date. The fair value of the options has been calculated using the Black-Scholes formula, using the following assumptions: • an expected life varying from 5.76 to 6.25 years, calculated in accordance with the guidance provided in SEC Staff bulletin No. 110 for plain vanilla options using the simplified method, since our equity shares have been publicly traded for only a limited period of time and we do not have sufficient historical exercise data at the grant date of the options; • a risk-free interest rate varying from 0.8% to 2.1% (2017: 0.8% to 2.8%; 2016: 0.8% to 2.8%); • no expected dividend payments; and • a volatility of 40-50% based on the volatility of a set of peer companies. Peer company data has been used given the short period of time our shares have been publicly traded. Above assumptions were valid at the moment NXP granted option. Stock options Weighted average exercise price in USD Weighted average remaining contractual term Aggregate intrinsic value Outstanding at January 1, 2018 2,981,033 48.39 Granted - - Exercised 803,391 37.13 Forfeited 73,554 73.43 Outstanding at December 31, 2018 2,104,088 51.81 4.7 49 Exercisable at December 31, 2018 1,583,001 43.14 4.1 48 No options were granted in 2018 and 2017; the weighted average per share grant date fair value of stock options granted in 2016: $34.59. The intrinsic value of the exercised options was $59 million (2017: $311 million; 2016: $145 million), whereas the amount received by NXP was $30 million (2017: $137 million; 2016: $88 million). The tax benefit realized from stock options exercised during fiscal 2018, 2017, and 2016 was $34 million, $83 million, and $79 million, respectively. At December 31, 2018, there was a total of $7 million (2017: $25 million) of unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted-average period of 0.8 years (2017: 1.2 years). Performance share units Financial performance conditions Shares Weighted average grant date fair value in USD Outstanding at January 1, 2018 282,938 74.31 Granted - - Vested 41,335 63.53 Forfeited 19,107 86.36 Outstanding at December 31, 2018 222,496 75.28 In 2018, the weighted average grant date fair value of performance share units granted was $121.18 (2017: n Market performance conditions Shares Weighted average grant date fair value in USD Outstanding at January 1, 2018 37,791 40.28 Granted 1,484,882 121.18 Vested 37,791 40.28 Forfeited 5,896 121.37 Outstanding at December 31, 2018 1,478,986 121.18 The fair value of the performance share units at the time of vesting was $6 million (2017: $39 million; 2016: $147 million). At December 31, 2018, there was a total of $143 million (2017: $4 million; 2016: $12 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 2.6 years (2017: 1.3 years; 2016: 1.8 years). Restricted share units Shares Weighted average grant date fair value in USD Outstanding at January 1, 2018 6,411,610 101.13 Granted 3,552,823 84.77 Vested 3,083,601 95.61 Forfeited 369,268 102.84 Outstanding at December 31, 2018 6,511,564 94.73 The weighted average grant date fair value of restricted share units granted in 2018 was $84.77 (2017: $115.05; 2016: $98.16). The fair value of the restricted share units at the time of vesting was $263 million (2017: $328 million; 2016: $334 million). At December 31, 2018, there was a total of $484 million (2017: $483 million; 2016: $422 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 1.5 years (2017: 1.6 years; 2016: 1.6 years). Management Equity Stock Option Plan (“MEP”) Awards are no longer available under these plans. Current employees who owned vested MEP Options could have exercised such MEP Options during the five-year period subsequent to September 18, 2013, subject to these employees remaining employed by us and subject to the applicable laws and regulations. No charge was recorded in 2018, 2017 and 2016 for options granted under the MEP. The following table summarizes the information about changes during 2018 regarding NXP’s MEP Options. Stock options Stock options Weighted average exercise price in EUR Outstanding at January 1, 2018 231,924 35.72 Granted - - Exercised 231,924 35.72 Forfeited - - Expired - - Outstanding at December 31, 2018 - - The intrinsic value of exercised options was $16 million (2017: $206 million; 2016: $13 million), whereas the amount received by NXP was $9 million (2017: $60 million; 2016: $7 million). At December 31, 2018, there were no options outstanding (2017: 231,924 vested options with a weighted average exercise price of €35.72; 2016: 2,534,272 vested options with a weighted average exercise price of €23.67). |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable, net | 9 Accounts Receivable, net Accounts receivable, net are summarized as follows: 2018 2017 Accounts receivable from third parties 795 882 Allowance for doubtful accounts (3 ) (3 ) 792 879 The following table presents accounts receivable, net disaggregated by sales channel: 2018 2017 Distributors 93 150 Original Equipment Manufacturers and Electronic Manufacturing Services 651 632 Other 1) 48 97 792 879 1) Represents accounts receivable, net in Corporate and Other for other services . |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | 10 Inventories, net Inventories are summarized as follows: 2018 2017 Raw materials 74 62 Work in process 949 901 Finished goods 256 273 1,279 1,236 The portion of finished goods stored at customer locations under consignment amounted to $52 million as of December 31, 2018 (2017: $69 million). The amounts recorded above are net of an allowance for obsolescence of $111 million as of December 31, 2018 (2017: $107 million). |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 11 Property, Plant and Equipment, net The following table presents details of the Company’s property, plant and equipment, net of accumulated depreciation: Useful Life (in years) 2018 2017 Land 165 166 Buildings 9 to 50 1,246 1,200 Machinery and installations 2 to 10 3,509 3,179 Other Equipment 1 to 5 537 453 Prepayments and construction in progress 278 172 5,735 5,170 Less accumulated depreciation (3,299 ) (2,875 ) Property, plant and equipment, net of accumulated depreciation 2,436 2,295 Land with a book value of $165 million (2017: $166 million) is not depreciated. There was no significant construction in progress and therefore no related capitalized interest. |
Identified Intangible Assets
Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | 12 Identified Intangible Assets The changes in identified intangible assets were as follows: Total Balance as of January 1, 2017: Cost 9,512 Accumulated amortization/impairment (2,169 ) Book value 7,343 Changes in book value: Acquisitions/additions 78 Amortization (1,539 ) Impairment (23 ) Translation differences 4 Total changes (1,480 ) Balance as of December 31, 2017: Cost 9,335 Accumulated amortization/impairment (3,472 ) Book value 5,863 Changes in book value: Acquisitions/additions 114 Amortization (1,509 ) Translation differences (1 ) Total changes (1,396 ) Balance as of December 31, 2018: Cost 9,183 Accumulated amortization/impairment (4,716 ) Book value 4,467 Identified intangible assets as of December 31, 2018 and 2017 respectively were composed of the following: December 31, 2018 December 31, 2017 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization IPR&D 1 276 - 687 - Marketing-related 81 (50 ) 82 (34 ) Customer-related 964 (301 ) 1,155 (437 ) Technology-based 7,862 (4,365 ) 7,411 (3,001 ) Identified intangible assets 9,183 (4,716 ) 9,335 (3,472 ) 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, excluding software, for each of the five succeeding years is: 2019 1,533 2020 1,308 2021 504 2022 418 2023 230 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, 2018. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 13 Goodwill The changes in goodwill in 2018 and 2017 were as follows: 2018 2017 Balances as of January 1 Cost 9,020 9,029 Accumulated impairment (154 ) (186 ) Book value 8,866 8,843 Changes in book value: Acquisitions 11 - Purchase accounting and other adjustments related to Freescale acquisition - (28 ) Translation differences (20 ) 51 Total changes (9 ) 23 Balances as of December 31 Cost 8,971 9,020 Accumulated impairment (114 ) (154 ) Book value 8,857 8,866 No goodwill impairment charges were required to be recognized in 2018 or 2017. The fair value of the reporting units substantially exceeds the carrying value of the reporting units. See note 22, “Segments and Geographical Information”, for goodwill by segment and note 3, “Acquisitions and Divestments”. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 14 Postretirement Benefit Plans Pensions Our employees participate in employee pension plans in accordance with the legal requirements, customs and the local situation 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 1,376 companies and 625,000 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 decrease from 25.35% (2018) to 25.02% (2019). PME multi-employer plan 2018 2017 2016 NXP’s contributions to the plan 34 35 36 (including employees’ contributions) 4 4 4 Average number of NXP’s active employees participating in the plan 2,183 2,271 2,415 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 2018 was $105 million (2017: $97 million; 2016: $102 million) of which $49 million (2017: $42 million; 2016: $44 million) represents defined-contribution plans and $30 million (2017: $31 million; 2016: $32 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 cost of defined-benefit plans amounted to a cost of $26 million in 2018 (2017: a benefit of $1 million; 2016: a cost of $26 million) consisting of $26 million ongoing cost (2017: $24 million; 2016: $27 million and in 2017 a gain of $25 million from special events resulting from restructurings, divestments, curtailments and settlements; 2016: $1 million). The table below provides a summary of the changes in the pension benefit obligations and defined-benefit pension plan assets for 2018 and 2017, 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. 2018 2017 Projected benefit obligation Projected benefit obligation at beginning of year 651 564 Service cost 16 15 Interest cost 12 11 Actuarial (gains) and losses (12 ) 15 Curtailments and settlements - (1 ) Benefits paid (31 ) (22 ) Exchange rate differences (19 ) 69 Projected benefit obligation at end of year 617 651 Plan assets Fair value of plan assets at beginning of year 195 172 Actual return on plan assets 4 8 Employer contributions 38 18 Curtailments and settlements - (1 ) Benefits paid (31 ) (21 ) Exchange rate differences (5 ) 19 Fair value of plan assets at end of year 201 195 Funded status (416 ) (456 ) Classification of the funded status is as follows – Accrued pension cost within other non-current liabilities (407 ) (443 ) – Accrued pension cost within accrued liabilities (9 ) (13 ) Total (416 ) (456 ) Accumulated benefit obligation Accumulated benefit obligation for all Company-dedicated benefit pension plans 578 613 Plans with assets less than accumulated benefit obligation Funded plans with assets less than accumulated benefit obligation – Fair value of plan assets 197 190 – Accumulated benefit obligations 348 375 – Projected benefit obligations 376 401 Unfunded plans – Accumulated benefit obligations 226 233 – Projected benefit obligations 236 243 Amounts recognized in accumulated other comprehensive income (before tax) Total AOCI at beginning of year 113 91 – Net actuarial loss (gain) (16 ) 9 – Exchange rate differences (3 ) 13 Total AOCI at end of year 94 113 The weighted average assumptions used to calculate the projected benefit obligations were as follows: 2018 2017 Discount rate 2.0 % 1.9 % Rate of compensation increase 1.8 % 1.8 % The weighted average assumptions used to calculate the net periodic pension cost were as follows: 2018 2017 2016 Discount rate 1.9 % 2.0 % 2.5 % Expected returns on plan assets 3.0 % 3.1 % 3.5 % Rate of compensation increase 1.8 % 1.9 % 2.2 % For the Company’s major plans, the discount rate used is based on high quality corporate bonds (iBoxx Corporate Euro AA 10+). Plans in countries without a deep corporate bond market use a discount rate based on the local sovereign rate and the plans maturity (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: 2018 2017 2016 Service cost 16 15 17 Interest cost on the projected benefit obligation 12 11 14 Expected return on plan assets (6 ) (6 ) (6 ) Amortization of net (gain) loss 4 4 2 Curtailments & settlements - (25 ) (1 ) Net periodic cost 26 (1 ) 26 A sensitivity analysis shows that if the discount rate increases by 1% from the level of December 31, 2018, with all other variables held constant, the net periodic pension cost would decrease by $3 million. If the discount rate decreases by 1% from the level of December 31, 2018, with all other variables held constant, the net periodic pension cost would increase by $3 million. The estimated net actuarial loss (gain) and prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next year (2019) are $3 million and nil respectively. Plan assets The actual pension plan asset allocation at December 31, 2018 and 2017 is as follows: 2018 2017 Asset category: Equity securities 33 % 32 % Debt securities 44 % 47 % Insurance contracts 7 % 7 % Other 16 % 14 % 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 $201 million include $179 million related to the German and Japanese pension funds. The following table summarizes the classification of these assets. 2018 2017 Level I Level II Level III Level I Level II Level III Equity securities - 63 - - 62 - Debt securities 9 64 - 10 72 - Insurance contracts - 14 - - 13 - Other 1 16 12 2 16 8 10 157 12 12 163 8 The Company currently expects to make $12 million of employer contributions to defined-benefit pension plans and $8 million of expected cash payments in relation to unfunded pension plans. Estimated future pension benefit payments The following benefit payments are expected to be made (including those for funded plans): 2019 21 2020 18 2021 19 2022 23 2023 23 Years 2024-2028 137 Postretirement health care benefits In addition to providing pension benefits, NXP provides retiree healthcare benefits in the US which are accounted for as defined-benefit plans. In 2016, NXP also provided retiree healthcare benefits in the U.K. The liability associated with the U.K. benefits was divested in association with the sale of Standard Products during 2017. The accumulated postretirement benefit obligation at the end of 2018 equals $11 million (2017: $14 million). |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 15 Debt Short-term debt 2018 2017 Short-term bank borrowings - - Current portion of long-term debt (*) 1,107 751 Total 1,107 751 (*) Long-term debt The following table summarizes the outstanding long-term debt as of December 31, 2018 and 2017: 2018 2017 Maturities Amount Effective rate Amount Effective rate Fixed-rate 3.75% senior unsecured notes Jun, 2018 - 3.750 750 3.750 Fixed-rate 4.125% senior unsecured notes Jun, 2020 600 4.125 600 4.125 Fixed-rate 4.125% senior unsecured notes Jun, 2021 1,350 4.125 1,350 4.125 Fixed-rate 4.625% senior unsecured notes Jun, 2022 400 4.625 400 4.625 Fixed-rate 3.875% senior unsecured notes Sep, 2022 1,000 3.875 1,000 3.875 Fixed-rate 5.75% senior unsecured notes Mar, 2023 - 5.750 500 5.750 Fixed-rate 4.625% senior unsecured notes Jun, 2023 900 4.625 900 4.625 Fixed-rate 4.875% senior unsecured notes Mar, 2024 1,000 4.875 - - Fixed-rate 5.35% senior unsecured notes Mar, 2026 500 5.350 - - Fixed-rate 5.55% senior unsecured notes Dec, 2028 500 5.550 - - Fixed-rate 1% cash convertible notes Dec, 2019 1,150 1.000 1,150 1.000 Floating-rate revolving credit facility Dec, 2020 - - - - Total principal 7,400 6,650 Liabilities arising from capital lease transactions 27 29 Unamortized discounts, premiums and debt issuance costs (31 ) (28) Fair value of embedded cash conversion option (42 ) (86 ) Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments 7,354 6,565 Current portion of long-term debt (1,107 ) (751 ) Long-term debt 6,247 5,814 Range of interest rates Average rate of interest Principal amount outstanding 2018 Due in 2019 Due after 2019 Due after 2023 Average remaining term (in years) Principal amount outstanding 2017 USD notes 3.9%-5.8% 4.5 % 6,250 - 6,250 2,000 4.3 5,500 2019 Cash Convertible Senior Notes 1.0 % 1.0 % 1,150 1,150 - - 0.9 1,150 Revolving Credit Facility (1) - - - - - - - - Bank borrowings - - - - - - - - Liabilities arising from capital lease transactions 4.5%-13.8% 4.6 % 27 2 25 19 13.2 29 4.0 % 7,427 1,152 6,275 2,019 3.8 6,679 (1) We do not have any borrowings under the $600 million Revolving Credit Facility as of December 31, 2018 and 2017. As of December 31, 2018, the following principal amounts of long-term debt are due in the next 5 years: 2019 1,152 2020 601 2021 1,351 2022 1,402 2023 902 Due after 5 years 2,019 7,427 As of December 31, 2018, the book value of our outstanding long-term debt was $6,247 million, less debt issuance costs of $32 million and plus original issuance/debt premium of $3 million. As of December 31, 2018, we had no aggregate principal amount of variable interest rate indebtedness under our loan agreements. The remaining tenor of secured debt is on average 3.8 years. Accrued interest as of December 31, 2018 is $31 million (December 31, 2017: $35 million) . 2018 Financing 2024, 2026 and 2028 Senior Unsecured Notes On December 6, 2018, NXP B.V., together with NXP Funding LLC, issued $1 billion of 4.875% Senior Unsecured Notes due March 1, 2024, $500 million of 5.35% Senior Unsecured Notes due March 1, 2026 and $500 million of 5.55% Senior Unsecured Notes due December 1, 2028. NXP used a portion of the net proceeds of the offering of these notes to repay in full the Bridge Loan on December 6, 2018, as described below. The remaining proceeds will be used for general corporate purposes, which may include the repurchase of additional shares of NXP’s common stock. 2019 Bridge Loan On September 19, 2018, NXP B.V., together with NXP Funding LLC, entered into a $1 billion senior unsecured bridge term credit facility agreement under which an aggregate principal amount of $1 billion of term loans (the “Bridge Loan”) were borrowed. The Bridge Loan was to mature 364 days following the closing date of September 19, 2018 and the interest at a LIBOR rate plus an applicable margin of 1.5 percent. NXP used the net proceeds of the Bridge Loan for general corporate purposes as well as to finance parts of the announced equity buy-back program. The repayment occurred on December 6, 2018, as described above. 2018 Senior Notes On March 8, 2018, NXP B.V. together with NXP Funding LLC, delivered notice that it would repay to holders of its 3.75% Senior Notes due 2018 (the “2018 Notes”) $750 million of the outstanding aggregate principal amount of the 2018 Notes, which represented all of the outstanding aggregate principal amount of the 2018 Notes. The repayment occurred in April 2018 using available surplus cash. 2023 Senior Notes On March 2, 2018, NXP B.V. together with NXP Funding LLC, delivered notice that it would repay to holders of its 5.75% Senior Notes due 2023 (the “2023 Notes”) $500 million of the outstanding aggregate principal amount of the 2023 Notes, which represented all of the outstanding aggregate principal amount of the 2023 Notes. The repayment occurred in April 2018 using available surplus cash. 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, 2018 and December 31, 2017 has been secured by collateral on substantially all of the Company’s assets and of certain of its subsidiaries. Each series of the Senior Unsecured Notes are fully and unconditionally guaranteed jointly and severally, on a senior basis by certain of the Company’s current and future material wholly owned subsidiaries (“Guarantors”). Pursuant to various security documents related to the $600 million committed revolving credit facility, the Company and each Guarantor has granted first priority liens and security interests in, amongst others, the following, subject to the grant of further permitted collateral liens: (a) all present and future shares of capital stock of (or other ownership or profit interests in) each of its present and future direct subsidiaries, other than SMST Unterstützungskasse GmbH, and material joint venture entities; (b) all present and future intercompany debt of the Company and each Guarantor; (c) all of the present and future property and assets, real and personal, of the Company, and each Guarantor, including, but not limited to, machinery and equipment, inventory and other goods, accounts receivable, owned real estate, leaseholds, fixtures, general intangibles, license rights, patents, trademarks, trade names, copyrights, chattel paper, insurance proceeds, contract rights, hedge agreements, documents, instruments, indemnification rights, tax refunds, but excluding cash and bank accounts; and (d) all proceeds and products of the property and assets described above. Notwithstanding the foregoing, certain assets may not be pledged (or the liens not perfected) in accordance with agreed security principles, including: • if the cost of providing security is not proportionate to the benefit accruing to the holders; and • if providing such security requires consent of a third party and such consent cannot be obtained after the use of commercially reasonable efforts; and • if providing such security would be prohibited by applicable law, general statutory limitations, financial assistance, corporate benefit, fraudulent preference, “thin capitalization” rules or similar matters or providing security would be outside the applicable pledgor’s capacity or conflict with fiduciary duties of directors or cause material risk of personal or criminal liability after using commercially reasonable efforts to overcome such obstacles; and • if providing such security would have a material adverse effect (as reasonably determined in good faith by such subsidiary) on the ability of such subsidiary to conduct its operations and business in the ordinary course as otherwise permitted by the indenture; and • if providing such security or perfecting liens thereon would require giving notice (i) in the case of receivables security, to customers or (ii) in the case of bank accounts, to the banks with whom the accounts are maintained. Such notice will only be provided after the secured notes are accelerated. Subject to agreed security principles, if material property is acquired by the Company or a Guarantor that is not automatically subject to a perfected security interest under the security documents, then the Company or relevant Guarantor will within 60 days provide security over this property and deliver certain certificates and opinions in respect thereof as specified in the indenture governing the notes. 2019 Cash Convertible Senior Notes In November 2014, NXP issued $1,150 million principal amount of its 2019 Cash Convertible Senior Notes (the “Notes”). The 2019 Cash Convertible Senior Notes have a stated interest rate of 1.00%, matures on December 1, 2019 and may be settled only in cash. The indenture for the 2019 Cash Convertible Senior Notes does not contain any financial covenants. Contractual interest payable on the 2019 Cash Convertible Senior Notes began accruing in December 2014 and is payable semi-annually each December 1 st st Prior to September 1, 2019, holders may convert their 2019 Cash Convertible Senior Notes into cash upon the occurrence of one of the following events: • the price of NXP’s common stock reaches 130% of the conversion price on each applicable trading day during certain periods of time specified in the 2019 Cash Convertible Senior Notes; • specified corporate transactions occur; or • the trading price of the 2019 Cash Convertible Senior Notes falls below 98% of the product of (i) the last reported sales price of NXP’s common stock and (ii) the conversion rate on the date. On or after September 1, 2019, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2019 Cash Convertible Senior Notes into cash at any time, regardless of the foregoing circumstances. NXP may not redeem the 2019 Cash Convertible Senior Notes prior to maturity. The initial cash conversion rate for the 2019 Cash Convertible Senior Notes is 9.7236 shares of NXP’s common stock per $1,000 principal amount of 2019 Cash Convertible Senior Notes, equivalent to a cash conversion price of $102.84 per share of NXP’s common stock, with the amount due on conversion payable in cash. Upon cash conversion, a holder will receive the sum of the daily settlement amounts, calculated on a proportionate basis for each day, during a specified observation period following the cash conversion date. If a “fundamental change” (as defined below in this section) occurs at any time, holders will have the right, at their option, to require us to repurchase for cash all of their 2019 Cash Convertible Senior Notes, or any portion of the principal thereof that is equal to $1,000 or a multiple of $1,000 (provided that the portion of any global note or certified note, as applicable, not tendered for repurchase has a principal amount of at least $200,000, on the fundamental change repurchase date. A fundamental change is any transaction or event (whether by means of an exchange offer, change of common stock, liquidation, consolidation, merger, reclassification, recapitalization or otherwise) in which more than 50% of NXP’s common stock is exchanged for, converted into, acquired for or constitutes solely the right to receive, consideration. A transaction or transactions described above will not constitute a fundamental change, however, if at least 90% of the consideration received or to be received by our common shareholders, excluding cash payments for fractional shares, in connection with such transaction or transactions consists of shares of common equity that are listed or quoted on any permitted exchange or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions and as a result of such transaction or transactions such consideration becomes the reference property for the 2019 Cash Convertible Senior Notes. As of December 31, 2018, none of the conditions allowing the holders of the 2019 Cash Convertible Senior Notes to convert the 2019 Cash Convertible Senior Notes into cash had been met. The requirement that NXP must settle the conversion of the Notes in cash gives rise to a derivative instrument that must be bifurcated from the debt host. The embedded cash conversion option within the Cash Convertible Notes is required to be separated from the Cash Convertible Notes and accounted for separately as a derivative liability, with changes in fair value reported in our Consolidated Statements of Income in other (expense) income, net until the cash conversion option settles or expires. The initial fair value liability of the embedded cash conversion option simultaneously reduced the carrying value of the Cash Convertible Notes (effectively an original issuance discount). The embedded cash conversion option is measured and reported at fair value on a recurring basis, within Level 3 of the fair value hierarchy. The fair value of the embedded cash conversion option at December 31, 2018 was $24 million (2017: $301 million) which is recorded in other long-term liabilities in the accompanying balance sheet. For the year ended December 31, 2018, the change in the fair value of the embedded cash conversion option resulted in a profit of $277 million (2017: a loss of $43 million). Concurrently with the pricing of the 2019 Cash Convertible Senior Notes, NXP entered into hedge transactions, or the Notes Hedges, with various parties whereby NXP has the option to receive the cash amount that may be due to the Notes holders at maturity in excess of the $1,150 million principal amount of the notes, subject to certain conversion rate adjustments in the Notes Indenture. These options expire on December 1, 2019, and must be settled in cash. The aggregate cost of the Notes Hedges was $208 million. The Notes Hedges are accounted for as derivative assets, and are included in Other assets in NXP’s Consolidated Balance Sheet. As of December 31, 2018, the estimated fair value of the Notes Hedges was $24 million (2017: $301 million). The Notes Embedded Conversion Derivative and the Notes Hedges are adjusted to fair value each reported period and unrealized gains and losses are reflected in NXP’s Consolidated Statements of Operations. Because the fair values of the Notes Embedded Conversion Derivative and the Notes Hedges are designed to have similar offsetting values, there was no impact to NXP’s Consolidated Statements of Operations relating to these adjustments to fair value during fiscal 2018 (2017: no impact). In separate transactions, NXP also sold warrants, to various parties for the purchase of up to 11.18 million shares of NXP’s common stock at an initial strike price of $133.32 per share in a private placement pursuant to Section 4(2) of the Securities Act of 1933, as amended, or the Securities Act. The Warrants expire on various dates starting from March 2, 2020, and will be net share settled. Under the terms of the warrants, any Option Counterparty may adjust certain terms of its warrants upon the announcement, termination or occurrence of certain events. The warrant transactions may also be terminated if the Option Counterparty determines that no such adjustment will produce a commercially reasonable result, and that the relevant event is reasonably likely to occur. In particular, each Option Counterparty may adjust the terms of its warrants to compensate it for the economic effect of the announcements relating to the proposed acquisition of NXP by Qualcomm (including announcements of consummation, cancellation, withdrawal or discontinuance of the proposed acquisition), taking into account changes in volatility, expected dividends, stock loan rate or liquidity and any stock price discontinuity relevant to our common stock or the warrants. There have been no adjustments made at this time. Any such adjustment in the future may increase our delivery obligations upon expiration and settlement of the warrants or our obligations upon their cancellation, termination or unwinding, which would be settled using shares of our stock. NXP received $134 million in cash proceeds from the sale of the Warrants, which were at the time of issuance recorded in Other non-current liabilities. As of January 1, 2016, as of result of the acquisition of Freescale, NXP has concluded that the functional currency of the holding company is USD. Consequently, beginning from January 1, 2016, the Warrants with a carrying value of $168 million were reclassified to stockholders’ equity, and mark-to-market accounting is no longer applicable. The Warrants are included in diluted earnings per share to the extent the impact is dilutive. As of December 31, 2018, the Warrants were not dilutive. The principal amount, unamortized debt discount and net carrying amount of the liability component of the 2019 Cash Convertible Senior Notes as of December 31, 2018 and 2017 was as follows: As of December 31 (in millions) 2018 2017 Principal amount of 2019 Cash Convertible Senior Notes 1,150 1,150 Unamortized debt discount of 2019 Cash Convertible Senior Notes 45 91 Net liability of 2019 Cash Convertible Senior Notes 1,105 1,059 The effective interest rate, contractual interest expense and amortization of debt discount for the 2019 Cash Convertible Senior Notes for fiscal 2018 and 2017 were as follows: (in millions, except percentage) 2018 2017 Effective interest rate 5.14 % 5.14 % Contractual interest expense 12 12 Amortization of debt discount 44 42 As of December 31, 2018, the if-converted value of the 2019 Cash Convertible Senior Notes exceeded the principal amount of the Notes. The total fair value of the 2019 Cash Convertible Senior Notes was $1,327 million. Impact of Conversion Contingencies on Financial Statements At the end of each quarter until maturity of the 2019 Cash Convertible Senior Notes, NXP will reassess whether the stock price conversion condition has been satisfied. If one of the early conversion conditions is satisfied in any future quarter, NXP would classify its net liability under the 2019 Cash Convertible Senior Notes as a current liability on the Consolidated Balance Sheet as of the end of that fiscal quarter. If none of the early conversion conditions have been satisfied in a future quarter prior to the one-year period immediately preceding the maturity date, NXP would classify its net liability under the 2019 Cash Convertible Senior Notes as a non-current liability on the Consolidated Balance Sheet as of the end of that fiscal quarter. If the holders of the 2019 Cash Convertible Senior Notes elect to convert their 2019 Cash Convertible Senior Notes prior to maturity, any unamortized discount and transaction fees will be expensed at the time of conversion |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16 Commitments and Contingencies Lease Commitments At December 31, 2018 and 2017, there were no material capital lease obligations. Long-term operating lease commitments totaled $156 million as of December 31, 2018 (2017: $132 million). The long-term operating leases are mainly related to the rental of buildings and tools. These leases expire at various dates during the next 30 years. Future minimum lease payments under operating leases are as follows: 2019 43 2020 35 2021 24 2022 13 2023 11 Thereafter 30 Total future minimum leases payments 156 Rent expense amounted to $57 million in 2018 (2017: $63 million; 2016: $68 million). 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, 2018, the Company had purchase commitments of $333 million, which are due through 2032. 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. 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 $123 million accrued for potential and current legal proceedings pending as of December 31, 2018, compared to $104 million accrued (without reduction for any related insurance reimbursements) at December 31, 2017. The accruals are included in “Accrued liabilities” and “Other non-current liabilities”. As of December 31, 2018, the Company’s balance related to insurance reimbursements was $65 million (2017: $61 million) and is included in “Other current assets” and “Other non-current assets”. The Company also estimates the aggregate range of reasonably possible losses in excess of the amount accrued based on currently available information for those cases for which such estimate can be made. The estimated aggregate range requires significant judgment, given the varying stages of the proceedings (including the fact that many of them are currently in preliminary stages), the existence of multiple defendants (including the Company) in such claims whose share of liability has yet to be determined, the numerous yet-unresolved issues in many of the claims, and the attendant uncertainty of the various potential outcomes of such claims. Accordingly, the Company’s estimate will change from time to time, and actual losses may be more than the current estimate. As at December 31, 2018, 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 $289 million. Based upon our past experience with these matters, the Company would expect to receive insurance reimbursement on certain of these claims that would offset the potential maximum exposure of up to $205 million. In addition, the Company is currently assisting Motorola in the defense of personal injury lawsuits due to indemnity obligations included in the agreement that separated Freescale from Motorola in 2004. The Company is also defending a suit related to semiconductor operations that occurred prior to NXP’s separation from Philips. The multi-plaintiff Motorola lawsuits are pending in Cook County, Illinois, and the legacy NXP suit is pending in Santa Fe, New Mexico. These claims allege a link between working in semiconductor manufacturing clean room facilities and birth defects in 45 individuals. The Motorola suits allege exposures between 1965 and 2006. Each claim seeks an unspecified amount of damages for the alleged injuries; however, legal counsel representing the plaintiffs has indicated they will seek substantial compensatory and punitive damages from Motorola for the entire inventory of claims which, if proven and recovered, the Company considers to be material. In the Motorola suits, a portion of any indemnity due to Motorola will be reimbursed to NXP if Motorola receives an indemnification payment from its insurance coverage. Motorola has potential insurance coverage for many of the years indicated above, but with differing types and levels of coverage, self-insurance retention amounts and deductibles. We are in discussions with Motorola and their insurers regarding the availability of applicable insurance coverage for each of the individual cases . 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 historical 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. Certain of these 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 contaminated. 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. As of December 31, 2018, we have recorded $88 million for environmental remediation costs, which are primarily included in other non-current liabilities in the accompanying Consolidated Balance Sheet. This amount represents the undiscounted future cash flows of our estimated share of costs incurred in environmental cleanup sites without considering recovery of costs from any other party or insurer, since in most cases potentially responsible parties other than us may exist and be held responsible. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 17 Stockholders’ Equity The share capital of the Company as of December 31, 2018 and 2017 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. On November 16, 2018, the Company, as authorized by the June 2018 AGM, cancelled 5% (representing 17,300,143 shares) of the issued number of NXP shares. As a result, the number of issued NXP shares as per November 16, 2018 is 328,702,719 shares. At December 31, 2018, the Company has issued and paid up 328,702,719 shares (2017: 346,002,862 shares) of common stock each having a par value of €0.20 or a nominal stock capital of €66 million (2017: €69 million). Cash dividends On September 10, 2018, NXP announced the initiation of a Quarterly Dividend Program under which the company will pay a regular quarterly cash dividend. Accordingly, interim dividends of $0.25 per ordinary share were paid on October 5, 2018 and January 7, 2019 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 8, “Share-based Compensation”. Treasury shares From time to time, last on June 22, 2018, the General Meeting of Shareholders authorize the Board of Directors to repurchase shares of our common stock. On that basis, for the first time in 2011 and latest effective November 1, 2018, the Board of Directors executed 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: 2018 2017 2016 Total shares in treasury at beginning of year 3,078,470 10,609,980 3,998,982 Total cost 342 915 342 Shares acquired under repurchase program 54,376,181 2,522,589 15,537,868 Average price in $ per share 92.07 113.36 82.36 Amount paid 5,006 286 1,280 Shares delivered 4,241,487 10,054,099 8,926,870 Average price in $ per share 107.75 85.42 79.25 Amount received 39 233 115 Shares retired 17,300,143 - - Total shares in treasury at end of year 35,913,021 3,078,470 10,609,980 Total cost 3,238 342 915 Shareholder tax on repurchased shares Under Dutch tax law, the repurchase of a company’s shares by an entity domiciled in the Netherlands results is a taxable event. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 18 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 translation differences Change in fair value cash flow hedges Net actuarial gain/(losses) Unrealized gains/losses available-for sale securities Accumulated Other Comprehensive Income (loss) As of December 31, 2016 113 (2 ) (81 ) 4 34 Other comprehensive income (loss) before reclassifications 156 29 (20 ) (3 ) 162 Amounts reclassified out of accumulated other comprehensive income (loss) - (15 ) - (6 ) (21 ) Income tax effects - (4 ) 4 2 2 Other comprehensive income (loss) 156 10 (16 ) (7 ) 143 As of December 31, 2017 269 8 (97 ) (3 ) 177 Other comprehensive income (loss) before reclassifications (51 ) (10 ) 9 - (52 ) Amounts reclassified out of accumulated other comprehensive income (loss) - (4 ) - 3 (1 ) Income tax effects - 3 (4 ) - (1 ) Other comprehensive income (loss) (51 ) (11 ) 5 3 (54 ) As of December 31, 2018 218 (3 ) (92 ) - 123 |
Related-party Transactions
Related-party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-party Transactions | 19 Related-party Transactions The Company’s related parties are the members of the board of directors of NXP Semiconductors N.V., the members of the management team of NXP Semiconductors N.V. and equity-accounted investees and, up to July 26, 2018, Qualcomm Incorporated. Other We have a number of strategic alliances and joint ventures. We have relationships with certain of our alliance partners in the ordinary course of business whereby we enter into various sale and purchase transactions, generally on terms comparable to transactions with third parties. However, in certain instances upon divestment of former businesses where we enter into supply arrangements with the former owned business, sales are conducted at cost. The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: 2018 2017 2016 Revenue and other income 133 130 59 Purchase of goods and services 106 144 116 The following table presents the amounts related to receivable and payable balances with these related parties: 2018 2017 Receivables 25 54 Payables 49 77 As part of the divestment of the SP business, we entered into a lease commitment and related services to Nexperia, that is $28 million as of December 31, 2018, and committed $50 million to an investment fund affiliated with Nexperia’s owners. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 20 Fair Value of Financial Assets and Liabilities The following table summarizes the estimated fair value and carrying amount of our financial instruments measured on a recurring basis: December 31, 2018 December 31, 2017 Fair value hierarchy Carrying amount Estimated fair value Carrying amount Estimated fair value Assets: Notes hedges 3 24 24 301 301 Other financial assets 2 32 32 29 29 Derivative instruments-assets 2 6 6 10 10 Liabilities: Short-term debt 2 (2 ) (2 ) (2 ) (2 ) Short-term debt (bonds) 2 - - (749 ) (755 ) Short-term debt (2019 Cash Convertible Senior Notes) 2 (1,105 ) (1,327 ) (1,059 ) (1,418 ) Long-term debt (bonds) 2 (6,222 ) (6,191 ) (4,728 ) (4,879 ) Other long-term debt 2 (25 ) (25 ) (27 ) (27 ) Notes Embedded Conversion Derivative 3 (24 ) (24 ) (301 ) (301 ) Derivative instruments-liabilities 2 (2 ) (2 ) - - The following methods and assumptions were used to estimate the fair value of financial instruments: Other financial assets and derivatives For other financial assets and derivatives the fair value is based upon significant other observable inputs depending on the nature of the other financial asset and derivative. Notes hedges and Notes Embedded Conversion Derivative At December 31, 2018, the Notes hedges and the Notes Embedded Conversion Derivative are measured at fair value using level 3 inputs. The instruments are not actively traded and are valued at the measurement date using an option pricing model that uses observable inputs for the share price of NXP’s common stock, risk-free interest rate, dividend yield and the term, in combination with a significant unobservable input for volatility. Volatility has historically been determined by a hypothetical market place. During the second quarter of 2017, an adjustment was made to this factor where we utilized the hypothetical marketplace and also considered the implied volatility in actively traded call options with a similar term. Debt The fair value is estimated on the basis of observable inputs other than quoted prices in active markets for identical liabilities for certain issues, or on the basis of discounted cash flow analyses. Accrued interest is included under accrued liabilities and not within the carrying amount or estimated fair value of debt. Assets and liabilities recorded at fair value on a non-recurring basis We measure and record our non-marketable equity investments (non-marketable equity method and cost method investments) and non-financial assets, such as intangible assets and property, plant and equipment, at fair value when an impairment charge is required. |
Other Financial Instruments, De
Other Financial Instruments, Derivatives and Currency Risk | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Other Financial Instruments, Derivatives and Currency Risk | 21 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. Currency risk The Company’s transactions are denominated in a variety of currencies. The Company uses financial instruments to reduce its exposure to the effects of currency fluctuations. Accordingly, the Company’s organizations identify and measure their exposures from transactions denominated in other than their own functional currency. We calculate our net exposure on a cash flow basis considering balance sheet items, actual orders received or made and anticipated revenue and expenses. The Company generally hedges foreign currency exposures in relation to transaction exposures, such as receivables/payables resulting from such transactions and part of anticipated sales and purchases. The Company generally uses forwards to hedge these exposures. As of January 1, 2016, as a result of the acquisition of Freescale, NXP has concluded that the functional currency of the holding company is USD. Beginning from January 1, 2016, our U.S. dollar-denominated notes and short term loans will no longer need to be re-measured. Prior to January 1, 2016, the U.S. dollar-denominated debt held by our Dutch subsidiary (which had at that time a euro functional currency) could have generated adverse currency results in financial income and expenses depending on the exchange rate movement between the euro and the U.S. dollar. This exposure was partially mitigated by the application of net investment hedge accounting, which had been applied since May 2011. The U.S. dollar exposure of the net investment in U.S. dollar functional currency subsidiaries was hedged by certain of our U.S. dollar denominated debt. The hedging relationship was assumed to be highly effective. Foreign currency gains or losses on this U.S. dollar debt that were recorded in a euro functional currency entity that were designated as, and to the extent they were effective, as a hedge of the net investment in our U.S. dollar foreign entities, were reported as a translation adjustment in other comprehensive income within equity, and offset in whole or in part the foreign currency changes to the net investment that were also reported in other comprehensive income. Absent the application of net investment hedging, these amounts would have been recorded as a loss within financial income (expense) in the statement of operations. |
Segments and Geographical Infor
Segments and Geographical Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments and Geographical Information | 22 Segments and Geographical Information Prior to February 6, 2017, NXP was organized into two market oriented reportable segments, High Performance Mixed Signal (“HPMS”) and Standard Products (“SP”). As of February 6, 2017, the SP reportable segment was divested and HPMS remains as the sole reportable segment. Our HPMS business segment delivers high performance mixed signal solutions to our customers to satisfy their system and sub-systems needs across eight application areas: automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting and industrial, and software solutions for mobile phones. Our SP business segment offered standard products for use across many application markets, as well as application-specific standard products predominantly used in application areas such as mobile handsets, computing, consumer and automotive. The segments each include revenue from the sale and licensing of intellectual property related to that segment. Because the Company meets the criteria for aggregation set forth under ASC 280 “Segment Reporting”, and the operating segments have similar economic characteristics, the Company aggregates the results of operations of the Automotive, Secure Identification Solutions, Secure Connected Devices and Secure Interfaces and Infrastructure operating segments into one reportable segment, HPMS, and prior to February 6, 2017, the Standard Products and General Purpose Logic operating segments into another reportable segment, SP. Our Chief Executive Officer, who is our CODM, regularly reviews financial information at the reporting segment level in order to make decisions about resources to be allocated to the segments and to assess their performance. Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Asset information by segment is not provided to our CODM as the majority of our assets are used jointly or managed at corporate level. Arithmetical allocation of these assets to the various businesses is not deemed to be meaningful and as such total assets per segment has been omitted. Detailed information by segment for the years 2018, 2017 and 2016 is presented in the following tables. Revenue 2018 2017 2016 HPMS 9,022 8,745 8,086 SP - 118 1,220 Corporate and Other (1) 385 393 192 9,407 9,256 9,498 Operating income (loss) 2018 2017 2016 HPMS 807 656 (302 ) SP - 31 268 Corporate and Other (1) 1,903 1,415 (116 ) 2,710 2,102 (150 ) (1) Corporate and Other is not a reporting segment under ASC 280 “Segment Reporting”. Corporate and Other includes revenue related to manufacturing operations, unallocated expenses not related to any specific business segment and corporate restructuring charges. Goodwill assigned to segments Cost at January 1, 2018 Acquisitions Translation differences and other changes Cost at December 31, 2018 HPMS 8,750 11 (60 ) 8,701 Corporate and Other (1) 270 - - 270 9,020 11 (60 ) 8,971 Accumulated impairment at January 1, 2018 Translation differences and other changes Accumulated impairment at December 31, 2018 HPMS (154 ) 40 (114 ) Corporate and Other (1) - - - (154 ) 40 (114 ) (1) Corporate and Other is not a reporting segment under ASC 280 “Segment Reporting”. Geographical Information Revenue (1) Property, plant and equipment, net 2018 2017 2016 2018 2017 2016 China 3,430 3,640 3,882 287 281 251 Netherlands 349 304 285 214 198 183 United States 919 922 906 782 770 922 Singapore 1,220 1,082 984 298 211 166 Germany 531 570 623 55 57 52 Japan 735 750 550 - - 1 South Korea 357 356 369 - - - Malaysia 112 103 231 373 369 378 Other countries 1,754 1,529 1,668 427 409 399 9,407 9,256 9,498 2,436 2,295 2,352 (1) Revenue attributed to geographic areas is based on the customer’s shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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. |
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. • Level 3: Significant inputs to the valuation model are unobservable. |
Foreign currencies | Foreign currencies The Company uses the U.S. dollar as its reporting currency. The functional currency of the holding company is the U.S. dollar. As of January 1, 2017, as a result of internal reorganizations, NXP changed the functional currency of the principal Netherlands subsidiary to 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 2018 1.1451 1.1794 1.1352 1.2431 2017 1.1932 1.1310 1.0474 1.1932 2016 1.0474 1.1065 1.0474 1.1423 (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 dates of the transactions or 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 | 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. 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 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 and strategy in undertaking the hedge transaction and the hedged risk, together with 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 were as follows: 2018 2017 Euro 1,100 696 Chinese renminbi 127 132 Japanese yen 21 29 Malaysian ringgit 82 89 Singapore dollar 57 64 Swiss franc 25 34 Taiwan dollar 102 122 Thai baht 75 68 Other 51 16 |
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 doubtful accounts 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 for collectibility based on numerous factors including objective evidence about credit-risk concentration, collective debt risk based on average historical losses, 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 market, less advance payments on work in progress. 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. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. 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 capital leases are initially recorded at the lower of the fair value of the leased property or the present value of minimum lease payments. These assets and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. |
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 units based on the relative expected fair value provided by the acquisition. We perform an annual impairment assessment in the fourth quarter of each year, 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. In the quarter following the period in which identified intangible assets become fully amortized, we remove the fully amortized balances from the gross asset and accumulated amortization amounts. We perform a quarterly review of finite-lived identified intangible assets to determine whether facts and circumstances indicate that the useful live is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability 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. Impairments, 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. We perform an annual impairment assessment in the fourth quarter of each year for indefinite-lived intangible assets, 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. |
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 reacquisition 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 are expensed in the period in which they are incurred, except for in-process research and development 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. |
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 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. 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. |
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. |
Financial 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. 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 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 a 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 more than 50 percent 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 of 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. 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 and RSUs, the grant-date value, less estimated pre-vest forfeitures, is expensed on a straight-line basis over the vesting period. PSUs are expensed using a graded vesting schedule. The vesting period for stock options is generally four years, for RSUs is generally three years and PSUs is one to 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. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, RSUs, PSUs and Employee Stock Purchase Plan (“ESPP”) shares. Under the treasury stock method, the amount the employee must pay for exercising share-based awards and the amount of compensation cost for future service that the Company has not yet recognized are assumed to be used to repurchase shares. |
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 their subcontract manufacturers. One of our distributors accounted for 14% of our revenue in 2018, 15% in 2017 and 13% in 2016. One other distributor accounted for 10% of our revenue in 2018 and less than 10% of our revenue in 2017 and 2016. No other distributor accounted for greater than 10% of our revenue for 2018, 2017 or 2016. One OEM for which we had direct sales to accounted for 11% of our revenue in 2018, 11% in 2017 and less than 10% in 2016. No other individual OEM for which we had direct sales to accounted for more than 10% of our revenue for 2018, 2017 or 2016. Credit exposure related to NXP’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. NXP is party to certain hedge transactions related to its 2019 Cash Convertible Senior Notes. NXP is subject to the risk that the counterparties to these transactions may not be able to fulfill their obligations under these hedge transactions. NXP purchased options and issued warrants to hedge potential cash payments in excess of the principal and contractual interest related to its 2019 Cash Convertible Senior Notes, which were issued during fiscal 2014. The 2019 Cash Convertible Senior Note hedges are adjusted to fair value each reporting period and unrealized gains and losses are reflected in NXP’s Consolidated Statements of Operations. Because the fair value of the 2019 Cash Convertible Senior Notes embedded conversion derivative and the 2019 Cash Convertible Senior Notes hedges are designed to have similar offsetting values, there was no impact to NXP’s Consolidated Statements of Operations relating to these adjustments to fair value. The Company is using outside suppliers or foundries for a portion of its manufacturing capacity. We have operations in Europe and Asia subject to collective bargaining agreements which could pose a risk to the Company in the near term but we do not expect that our operations will be disrupted if such is the case. |
Accounting standards adopted in 2018 and new standards to be adopted after 2018 | Accounting standards adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as modified by subsequently issued ASUs, which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The Company adopted this standard on January 1, 2018, using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Comparative information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of initially applying the new standard was recognized as a net increase of $14 million to the opening balance of retained earnings, driven from the acceleration of revenue recognition for contracts with products that have no alternative use and an enforceable right to payment for performance completed to date. We expect the impact of the adoption to be immaterial to our net income on an ongoing basis. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The new standard requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The new standard became effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our financial position or results of operations. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash flow, and other Topics. ASU 2016-15 became effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our statement of cash flows. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 introduces a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as a business. ASU 2017-01 became effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our financial position or results of operations. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“net benefit cost”). The ASU requires that the service cost component be presented separately from the other components of net benefit cost. Services costs should be presented with other employee compensation costs within operations or capitalized in inventory or other assets in accordance to the company’s accounting policies. The other components of net benefit costs should be presented separately outside of a subtotal of income from operations, if one is presented. ASU 2017-07 became effective for us on January 1, 2018. The adoption of this guidance did not have a material impact on our financial position or results of operations. New standards to be adopted after 2018 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 Leases, and ASU 2018-11, Leases (Topic 842): Targeted Improvements. ASU 2018-11 clarifies narrow aspects of Topic 842 and is not expected to have a significant effect on entities applying Topic 842. ASU 2018-11 provides entities with an additional transition method to adopt the new leases standard. Under the new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. and the Company will apply the new transition method in ASU 2018-11 The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The most significant impact of adopting ASC 842 will relate to recording lease asset and related liabilities on our balance sheet, which the Company does not expect to have a material impact on our financial position or results of operations. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, the one step quantitative impairment test calculates goodwill impairment as the excess of the carrying value of a reporting unit over its fair value, up to the carrying value of the goodwill. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The ASU should be applied on a prospective basis. The Company does not expect the adoption of this guidance to have a material impact on our financial position or results of operations. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvement to Accounting for Hedging Activities. ASU 2017-12 simplifies certain aspects of hedge accounting and improves disclosures of hedging arrangements through the elimination of the requirement to separately measure and report hedge ineffectiveness. The ASU generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. Entities must apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach. The presentation and disclosure requirements must be applied prospectively. ASU 2017-12 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on our financial position or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 removes certain disclosure requirements, including the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. ASU 2018-13 also adds disclosure requirements, including changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019, with early adoption permitted. The amendments on changes in unrealized gains and losses, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company does not expect the adoption of this guidance to have a material impact on our financial statement disclosures. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 removes disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. ASU 2018-14 should be applied on a retrospective basis to all periods presented and is effective for annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on our financial statement disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Therefore, a customer in a hosting arrangement that is a service contract determines which project stage an implementation activity relates to. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. ASU 2018-15 also requires the customer to expense the capitalized implementation costs over the term of the hosting arrangement, and to apply the existing impairment guidance in Subtopic 350-40 to the capitalized implementation costs as if the costs were long-lived assets. ASU 2018-15 can be applied either retrospectively or prospectively and is effective for annual reporting periods beginning after December 15, 2019, and interim periods therein, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on our financial position or results of operations. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Exchange Rates for U.S. Dollars into Euros Applicable for Translation of NXP's Financial Statements | 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 2018 1.1451 1.1794 1.1352 1.2431 2017 1.1932 1.1310 1.0474 1.1932 2016 1.0474 1.1065 1.0474 1.1423 (1) The average of the noon-buying rate at the end of each fiscal month during the period presented. |
Gross Notional Amounts of Company's Foreign Currency Derivatives by Currency | The gross notional amounts of the Company’s foreign currency derivatives by currency were as follows: 2018 2017 Euro 1,100 696 Chinese renminbi 127 132 Japanese yen 21 29 Malaysian ringgit 82 89 Singapore dollar 57 64 Swiss franc 25 34 Taiwan dollar 102 122 Thai baht 75 68 Other 51 16 |
Acquisitions and Divestments (T
Acquisitions and Divestments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Gain on Sale of Business | The gain on the sale of $1,597 million is included in the Statement of Operations in the line item “Other income (expense)” and is composed of the following: Total cash consideration 2,750 Assets held for sale (1,117 ) Cash divested (138 ) Liabilities held for sale 199 Other adjustments (69 ) Transaction costs (28 ) Gain 1,597 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Revenue Disaggregated by Sales Channel | Disaggregation of revenue The following table presents revenue disaggregated by sales channel: 2018 2017 1) 2016 1) Distributors 4,865 4,734 4,644 Original Equipment Manufacturers and Electronic Manufacturing Services 4,157 4,129 4,662 Other 2) 385 393 192 Total 9,407 9,256 9,498 1) As noted above, prior period amounts have not been adjusted for the impact of adopting ASC 606 under the modified retrospective method. 2) Represents revenues in Corporate and Other for other services. |
Depreciation, Amortization and Impairment | Depreciation, amortization and impairment Depreciation and amortization, including impairment charges, are as follows: 2018 2017 2016 Depreciation of property, plant and equipment 478 611 609 Amortization of internal use software 8 21 24 Amortization of other identified intangible assets (*) 1,501 1,541 1,572 1,987 2,173 2,205 (*) |
Other Income (Expense) | Other income (expense) 2018 2017 2016 Result on disposal of businesses 39 1,572 8 Result on disposal of properties 1 1 1 Other income (expense) 1,961 2 - 2,001 1,575 9 |
Financial Income (Expense) | Financial income (expense) 2018 2017 2016 Interest income 48 27 11 Interest expense (273 ) (310 ) (408 ) Total interest expense, net (225 ) (283 ) (397 ) Net gain (loss) on extinguishment of debt (26 ) (41 ) (32 ) Foreign exchange rate results (14 ) (30 ) (15 ) Miscellaneous financing costs/income, net (*) (70 ) (12 ) (9 ) Total other financial income (expense) (110 ) (83 ) (56 ) Total (335 ) (366 ) (453 ) (*) |
Results Relating to Equity-Accounted Investees | Results related to equity-accounted investees at the end of each period were as follows: 2018 2017 2016 Company’s share in income (loss) 7 17 11 Other results 52 36 - 59 53 11 |
Summary of Carrying Value of Investments in Equity-Accounted Investees | The total carrying value of investments in equity-accounted investees is summarized as follows: 2018 2017 Shareholding % Amount Shareholding % Amount ASEN - - 40 66 WeEn - - 49 65 Others 13 15 13 146 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Summary of Changes in Position of Restructuring Liabilities by Segment | The following table presents the changes in the position of restructuring liabilities in 2018 by segment: Balance January 1, 2018 Additions Utilized Released Other changes (1) Balance December 31, 2018 HPMS 86 5 (25 ) - (4 ) 62 Corporate and Other 3 - - - - 3 89 5 (25 ) - (4 ) 65 (1) Other changes primarily related to translation differences and internal transfers. The total restructuring liability as of December 31, 2018 of $65 million is classified in the balance sheet under current liabilities ($60 million) and non-current liabilities ($5 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 2017 by segment: Balance January 1, 2017 Additions Utilized Released Other changes (1) Balance December 31, 2017 HPMS 148 7 (65 ) (16 ) 12 86 SP 3 - - - (3 ) - Corporate and Other - - - - 3 3 151 7 (65 ) (16 ) 12 89 (1) Other changes primarily related to translation differences and internal transfers. |
Components of Restructuring Charges Less Releases Recorded in Liabilities | The components of restructuring charges less releases recorded in the liabilities in 2018, 2017 and 2016 are as follows: 2018 2017 2016 Personnel lay-off costs 4 7 52 Other exit costs 2 10 19 Release of provisions/accruals - (16 ) (3 ) Net restructuring charges 6 1 68 |
Restructuring Charges Less Releases Recorded in Liabilities Per Line Item in Statement of Operations | The restructuring charges less releases recorded in operating income are included in the following line items in the statement of operations: 2018 2017 2016 Cost of revenue - 3 18 Selling, general and administrative 7 10 9 Research & development - (12 ) 41 Other income (expense) (1 ) - - Net restructuring charges 6 1 68 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows: 2018 2017 2016 Netherlands 2,570 1,679 537 Foreign (195 ) 57 (1,140 ) 2,375 1,736 (603 ) |
Components of Benefit (Expense) for Income Taxes | The components of the benefit (expense) for income taxes are as follows: 2018 2017 2016 Current taxes: Netherlands (296 ) (179 ) (7 ) Foreign (91 ) (135 ) (67 ) (387 ) (314 ) (74 ) Deferred taxes: Netherlands 2 (259 ) 205 Foreign 209 1,056 720 211 797 925 Total benefit (expense) for income taxes (176 ) 483 851 |
Reconciliation of Statutory Income Tax Rate | A (in percentages) 2018 2017 2016 Statutory income tax in the Netherlands 25.0 25.0 25.0 Rate differential local statutory rates versus statutory rate of the Netherlands 0.8 (4.5 ) 24.2 Net change in valuation allowance 0.4 1.1 72.6 Non-deductible expenses/losses 2.7 2.2 (7.0 ) Sale of non-deductible goodwill - 3.8 - The U.S. Tax Cuts and Jobs Act (0.1 ) 1) (42.3 ) - Tax on gains related to internal corporate reorganization transaction - - (10.3 ) Netherlands tax incentives (10.6 ) (7.5 ) 17.9 Foreign tax incentives (3.7 ) (4.7 ) 13.0 Adjustments of prior years' income taxes (3.5 ) (0.3 ) 0.1 Other differences (3.6 ) (0.6 ) 5.6 Effective tax rate 7.4 % (27.8 %) 141.1 % 1) This is only relating to the 2017 income tax provision. |
Principal Components of Deferred Tax Assets and Liabilities | The principal components of deferred tax assets and liabilities are presented below: 2018 2017 Operating loss and tax credit carryforwards 598 621 Disallowed interest carryforwards 117 156 Other accrued liabilities 83 100 Pensions 83 93 Share-based compensation 18 25 Restructuring liabilities 12 16 Receivables 83 71 Inventories 2 3 Other assets 2 2 Total Gross Deferred Tax Assets 998 1,087 Valuation Allowance (145 ) (140 ) Total Net Deferred Tax Assets 853 947 Intangible assets (including purchase accounting basis difference) (867 ) (1,161 ) Undistributed earnings of foreign subsidiaries (96 ) (109 ) Property, plant and equipment (including purchase accounting basis difference) (47 ) (54 ) Total Deferred Tax Liabilities (1,010 ) (1,324 ) Net Deferred Tax Position (157 ) (377 ) |
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: 2018 2017 Deferred tax assets within other non-current assets 293 324 Deferred tax liabilities within non-current liabilities (450 ) (701 ) (157 ) (377 ) |
Expiration of Tax Loss Carryforwards | At December 31, 2018 tax loss carryforwards of $795 million (inclusive of $228 million of U.S. state tax losses) will expire as follows: Balance Scheduled expiration December 31, 2018 2019 2020 2021 2022 2023 2024-2028 later unlimited Tax loss carryforwards 795 22 6 1 16 3 129 181 437 |
Expiration of Tax Credit Carryforwards | The Company also has tax credit carryforwards of $571 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, 2018 2019 2020 2021 2022 2023 2024-2028 later unlimited Tax credit carryforwards 571 12 16 1 11 10 186 281 54 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 2016 Balance as of January 1, 177 146 149 Translation differences (4 ) 4 1 Decreases from activities which are held for sale - - (7 ) Increases from tax positions taken during prior periods 7 19 1 Decreases from tax positions taken during prior periods (17 ) - (3 ) Increases from tax positions taken during current period 7 10 9 Decreases relating to settlements with the tax authorities (5 ) (2 ) (4 ) Balance as of December 31, 165 177 146 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share (EPS) | The computation of earnings per share (EPS) is presented in the following table: 2018 2017 2016 Net income (loss) 2,258 2,272 259 Less: Net income (loss) attributable to non-controlling interests 50 57 59 Net income (loss) attributable to stockholders 2,208 2,215 200 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 325,781 338,646 338,477 Plus incremental shares from assumed conversion of: Options 1) 1,145 4,517 5,582 Restricted Share Units, Performance Share Units and Equity Rights 2) 1,680 2,639 3,548 Warrants 3) - - - Dilutive potential common share 2,825 7,156 9,130 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1) 328,606 345,802 347,607 EPS attributable to stockholders in $: Basic net income (loss) 6.78 6.54 0.59 Diluted net income (loss) 6.72 6.41 0.58 1) Stock options to purchase up to 0.1 million shares of NXP’s common stock that were outstanding in 2018 (2017: 0.1 million shares; 2016: 1.4 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options . 2) Unvested RSU’s, PSU’s and equity rights of 0.9 million shares that were outstanding in 2018 (2017: 0.7 million shares; 2016: 0.9 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSU’s, PSU’s and equity rights or the performance goal has not been met . 3) Warrants to purchase up to 11.2 million shares of NXP’s common stock at a price of $132.55 per share were outstanding in 2018 (2017: 11.2 million shares at a price of $133.32; 2016: 11.2 million shares at a price of $133.32). Upon exercise, the warrants will be net share settled. At the end of 2018, 2017 and 2016, the warrants were not included in the computation of diluted EPS because the warrants’ exercise price was greater than the average fair market value of the common shares . |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Share-Based Compensation Expense | Share-based compensation expense is included in the following line items in our statement of operations: 2018 2017 2016 Cost of revenue 40 33 49 Research and development 133 122 123 Selling, general and administrative 141 126 166 314 281 338 |
Long Term Incentive Plans [Member] | |
Summary of Stock Options and Changes | Stock options Weighted average exercise price in USD Weighted average remaining contractual term Aggregate intrinsic value Outstanding at January 1, 2018 2,981,033 48.39 Granted - - Exercised 803,391 37.13 Forfeited 73,554 73.43 Outstanding at December 31, 2018 2,104,088 51.81 4.7 49 Exercisable at December 31, 2018 1,583,001 43.14 4.1 48 |
Summary of Restricted Share Units | Restricted share units Shares Weighted average grant date fair value in USD Outstanding at January 1, 2018 6,411,610 101.13 Granted 3,552,823 84.77 Vested 3,083,601 95.61 Forfeited 369,268 102.84 Outstanding at December 31, 2018 6,511,564 94.73 |
Long Term Incentive Plans [Member] | Financial Performance Conditions [Member] | |
Summary of Performance Share Units | Performance share units Financial performance conditions Shares Weighted average grant date fair value in USD Outstanding at January 1, 2018 282,938 74.31 Granted - - Vested 41,335 63.53 Forfeited 19,107 86.36 Outstanding at December 31, 2018 222,496 75.28 |
Long Term Incentive Plans [Member] | Market Performance Conditions [Member] | |
Summary of Performance Share Units | Market performance conditions Shares Weighted average grant date fair value in USD Outstanding at January 1, 2018 37,791 40.28 Granted 1,484,882 121.18 Vested 37,791 40.28 Forfeited 5,896 121.37 Outstanding at December 31, 2018 1,478,986 121.18 |
Management Equity Stock Option Plan [Member] | |
Summary of Stock Options and Changes | The following table summarizes the information about changes during 2018 regarding NXP’s MEP Options. Stock options Stock options Weighted average exercise price in EUR Outstanding at January 1, 2018 231,924 35.72 Granted - - Exercised 231,924 35.72 Forfeited - - Expired - - Outstanding at December 31, 2018 - - |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts receivable, net are summarized as follows: 2018 2017 Accounts receivable from third parties 795 882 Allowance for doubtful accounts (3 ) (3 ) 792 879 |
Summary of Accounts Receivable, Net Disaggregated By Sales Channel | The following table presents accounts receivable, net disaggregated by sales channel: 2018 2017 Distributors 93 150 Original Equipment Manufacturers and Electronic Manufacturing Services 651 632 Other 1) 48 97 792 879 1) Represents accounts receivable, net in Corporate and Other for other services . |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories are summarized as follows: 2018 2017 Raw materials 74 62 Work in process 949 901 Finished goods 256 273 1,279 1,236 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 (in years) 2018 2017 Land 165 166 Buildings 9 to 50 1,246 1,200 Machinery and installations 2 to 10 3,509 3,179 Other Equipment 1 to 5 537 453 Prepayments and construction in progress 278 172 5,735 5,170 Less accumulated depreciation (3,299 ) (2,875 ) Property, plant and equipment, net of accumulated depreciation 2,436 2,295 |
Identified Intangible Assets (T
Identified Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Changes in Identified Intangible Assets | The changes in identified intangible assets were as follows: Total Balance as of January 1, 2017: Cost 9,512 Accumulated amortization/impairment (2,169 ) Book value 7,343 Changes in book value: Acquisitions/additions 78 Amortization (1,539 ) Impairment (23 ) Translation differences 4 Total changes (1,480 ) Balance as of December 31, 2017: Cost 9,335 Accumulated amortization/impairment (3,472 ) Book value 5,863 Changes in book value: Acquisitions/additions 114 Amortization (1,509 ) Translation differences (1 ) Total changes (1,396 ) Balance as of December 31, 2018: Cost 9,183 Accumulated amortization/impairment (4,716 ) Book value 4,467 |
Summary of Identified Intangible Assets | Identified intangible assets as of December 31, 2018 and 2017 respectively were composed of the following: December 31, 2018 December 31, 2017 Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization IPR&D 1 276 - 687 - Marketing-related 81 (50 ) 82 (34 ) Customer-related 964 (301 ) 1,155 (437 ) Technology-based 7,862 (4,365 ) 7,411 (3,001 ) Identified intangible assets 9,183 (4,716 ) 9,335 (3,472 ) 1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort. |
Other Intangible Assets [Member] | |
Schedule of Estimated Amortization Expense for Intangible Assets, Excluding Software | The estimated amortization expense for these identified intangible assets, excluding software, for each of the five succeeding years is: 2019 1,533 2020 1,308 2021 504 2022 418 2023 230 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The changes in goodwill in 2018 and 2017 were as follows: 2018 2017 Balances as of January 1 Cost 9,020 9,029 Accumulated impairment (154 ) (186 ) Book value 8,866 8,843 Changes in book value: Acquisitions 11 - Purchase accounting and other adjustments related to Freescale acquisition - (28 ) Translation differences (20 ) 51 Total changes (9 ) 23 Balances as of December 31 Cost 8,971 9,020 Accumulated impairment (114 ) (154 ) Book value 8,857 8,866 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of PME Multi-Employer Plan | PME multi-employer plan 2018 2017 2016 NXP’s contributions to the plan 34 35 36 (including employees’ contributions) 4 4 4 Average number of NXP’s active employees participating in the plan 2,183 2,271 2,415 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 2018 and 2017, 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. 2018 2017 Projected benefit obligation Projected benefit obligation at beginning of year 651 564 Service cost 16 15 Interest cost 12 11 Actuarial (gains) and losses (12 ) 15 Curtailments and settlements - (1 ) Benefits paid (31 ) (22 ) Exchange rate differences (19 ) 69 Projected benefit obligation at end of year 617 651 Plan assets Fair value of plan assets at beginning of year 195 172 Actual return on plan assets 4 8 Employer contributions 38 18 Curtailments and settlements - (1 ) Benefits paid (31 ) (21 ) Exchange rate differences (5 ) 19 Fair value of plan assets at end of year 201 195 Funded status (416 ) (456 ) Classification of the funded status is as follows – Accrued pension cost within other non-current liabilities (407 ) (443 ) – Accrued pension cost within accrued liabilities (9 ) (13 ) Total (416 ) (456 ) Accumulated benefit obligation Accumulated benefit obligation for all Company-dedicated benefit pension plans 578 613 Plans with assets less than accumulated benefit obligation Funded plans with assets less than accumulated benefit obligation – Fair value of plan assets 197 190 – Accumulated benefit obligations 348 375 – Projected benefit obligations 376 401 Unfunded plans – Accumulated benefit obligations 226 233 – Projected benefit obligations 236 243 Amounts recognized in accumulated other comprehensive income (before tax) Total AOCI at beginning of year 113 91 – Net actuarial loss (gain) (16 ) 9 – Exchange rate differences (3 ) 13 Total AOCI at end of year 94 113 |
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: 2018 2017 Discount rate 2.0 % 1.9 % Rate of compensation increase 1.8 % 1.8 % The weighted average assumptions used to calculate the net periodic pension cost were as follows: 2018 2017 2016 Discount rate 1.9 % 2.0 % 2.5 % Expected returns on plan assets 3.0 % 3.1 % 3.5 % Rate of compensation increase 1.8 % 1.9 % 2.2 % |
Components of Net Periodic Pension Costs | The components of net periodic pension costs were as follows: 2018 2017 2016 Service cost 16 15 17 Interest cost on the projected benefit obligation 12 11 14 Expected return on plan assets (6 ) (6 ) (6 ) Amortization of net (gain) loss 4 4 2 Curtailments & settlements - (25 ) (1 ) Net periodic cost 26 (1 ) 26 |
Summary of Actual Pension Plan Assets Allocation and Classification | The actual pension plan asset allocation at December 31, 2018 and 2017 is as follows: 2018 2017 Asset category: Equity securities 33 % 32 % Debt securities 44 % 47 % Insurance contracts 7 % 7 % Other 16 % 14 % 100 % 100 % The following table summarizes the classification of these assets. 2018 2017 Level I Level II Level III Level I Level II Level III Equity securities - 63 - - 62 - Debt securities 9 64 - 10 72 - Insurance contracts - 14 - - 13 - Other 1 16 12 2 16 8 10 157 12 12 163 8 |
Summary of Estimated Future Pension Benefit Payments | The following benefit payments are expected to be made (including those for funded plans): 2019 21 2020 18 2021 19 2022 23 2023 23 Years 2024-2028 137 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | Short-term debt 2018 2017 Short-term bank borrowings - - Current portion of long-term debt (*) 1,107 751 Total 1,107 751 (*) |
Summary of Outstanding Long-Term Debt | Long-term debt The following table summarizes the outstanding long-term debt as of December 31, 2018 and 2017: 2018 2017 Maturities Amount Effective rate Amount Effective rate Fixed-rate 3.75% senior unsecured notes Jun, 2018 - 3.750 750 3.750 Fixed-rate 4.125% senior unsecured notes Jun, 2020 600 4.125 600 4.125 Fixed-rate 4.125% senior unsecured notes Jun, 2021 1,350 4.125 1,350 4.125 Fixed-rate 4.625% senior unsecured notes Jun, 2022 400 4.625 400 4.625 Fixed-rate 3.875% senior unsecured notes Sep, 2022 1,000 3.875 1,000 3.875 Fixed-rate 5.75% senior unsecured notes Mar, 2023 - 5.750 500 5.750 Fixed-rate 4.625% senior unsecured notes Jun, 2023 900 4.625 900 4.625 Fixed-rate 4.875% senior unsecured notes Mar, 2024 1,000 4.875 - - Fixed-rate 5.35% senior unsecured notes Mar, 2026 500 5.350 - - Fixed-rate 5.55% senior unsecured notes Dec, 2028 500 5.550 - - Fixed-rate 1% cash convertible notes Dec, 2019 1,150 1.000 1,150 1.000 Floating-rate revolving credit facility Dec, 2020 - - - - Total principal 7,400 6,650 Liabilities arising from capital lease transactions 27 29 Unamortized discounts, premiums and debt issuance costs (31 ) (28) Fair value of embedded cash conversion option (42 ) (86 ) Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments 7,354 6,565 Current portion of long-term debt (1,107 ) (751 ) Long-term debt 6,247 5,814 |
Schedule of Long-Term Debt | Range of interest rates Average rate of interest Principal amount outstanding 2018 Due in 2019 Due after 2019 Due after 2023 Average remaining term (in years) Principal amount outstanding 2017 USD notes 3.9%-5.8% 4.5 % 6,250 - 6,250 2,000 4.3 5,500 2019 Cash Convertible Senior Notes 1.0 % 1.0 % 1,150 1,150 - - 0.9 1,150 Revolving Credit Facility (1) - - - - - - - - Bank borrowings - - - - - - - - Liabilities arising from capital lease transactions 4.5%-13.8% 4.6 % 27 2 25 19 13.2 29 4.0 % 7,427 1,152 6,275 2,019 3.8 6,679 (1) We do not have any borrowings under the $600 million Revolving Credit Facility as of December 31, 2018 and 2017. |
Principal Amounts of Long-Term Debt | As of December 31, 2018, the following principal amounts of long-term debt are due in the next 5 years: 2019 1,152 2020 601 2021 1,351 2022 1,402 2023 902 Due after 5 years 2,019 7,427 |
Summary of Principal Amount, Unamortized Debt Discount and Net Carrying Amount of Liability Component | The principal amount, unamortized debt discount and net carrying amount of the liability component of the 2019 Cash Convertible Senior Notes as of December 31, 2018 and 2017 was as follows: As of December 31 (in millions) 2018 2017 Principal amount of 2019 Cash Convertible Senior Notes 1,150 1,150 Unamortized debt discount of 2019 Cash Convertible Senior Notes 45 91 Net liability of 2019 Cash Convertible Senior Notes 1,105 1,059 |
Summary of Effective Interest Rate, Contractual Interest Expense and Amortization of Debt Discount | The effective interest rate, contractual interest expense and amortization of debt discount for the 2019 Cash Convertible Senior Notes for fiscal 2018 and 2017 were as follows: (in millions, except percentage) 2018 2017 Effective interest rate 5.14 % 5.14 % Contractual interest expense 12 12 Amortization of debt discount 44 42 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under operating leases are as follows: 2019 43 2020 35 2021 24 2022 13 2023 11 Thereafter 30 Total future minimum leases payments 156 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Transactions from Employee Option and Share Plans | The following transactions took place resulting from employee option and share plans: 2018 2017 2016 Total shares in treasury at beginning of year 3,078,470 10,609,980 3,998,982 Total cost 342 915 342 Shares acquired under repurchase program 54,376,181 2,522,589 15,537,868 Average price in $ per share 92.07 113.36 82.36 Amount paid 5,006 286 1,280 Shares delivered 4,241,487 10,054,099 8,926,870 Average price in $ per share 107.75 85.42 79.25 Amount received 39 233 115 Shares retired 17,300,143 - - Total shares in treasury at end of year 35,913,021 3,078,470 10,609,980 Total cost 3,238 342 915 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 translation differences Change in fair value cash flow hedges Net actuarial gain/(losses) Unrealized gains/losses available-for sale securities Accumulated Other Comprehensive Income (loss) As of December 31, 2016 113 (2 ) (81 ) 4 34 Other comprehensive income (loss) before reclassifications 156 29 (20 ) (3 ) 162 Amounts reclassified out of accumulated other comprehensive income (loss) - (15 ) - (6 ) (21 ) Income tax effects - (4 ) 4 2 2 Other comprehensive income (loss) 156 10 (16 ) (7 ) 143 As of December 31, 2017 269 8 (97 ) (3 ) 177 Other comprehensive income (loss) before reclassifications (51 ) (10 ) 9 - (52 ) Amounts reclassified out of accumulated other comprehensive income (loss) - (4 ) - 3 (1 ) Income tax effects - 3 (4 ) - (1 ) Other comprehensive income (loss) (51 ) (11 ) 5 3 (54 ) As of December 31, 2018 218 (3 ) (92 ) - 123 |
Related-party Transactions (Tab
Related-party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Related to Revenue and Other Income and Purchase of Goods and Services Incurred in 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: 2018 2017 2016 Revenue and other income 133 130 59 Purchase of goods and services 106 144 116 |
Schedule of Amounts Related to Receivable and Payable Balances with Related Parties | The following table presents the amounts related to receivable and payable balances with these related parties: 2018 2017 Receivables 25 54 Payables 49 77 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Value and Carrying Amount of Financial Instruments Measured on a Recurring Basis | The following table summarizes the estimated fair value and carrying amount of our financial instruments measured on a recurring basis: December 31, 2018 December 31, 2017 Fair value hierarchy Carrying amount Estimated fair value Carrying amount Estimated fair value Assets: Notes hedges 3 24 24 301 301 Other financial assets 2 32 32 29 29 Derivative instruments-assets 2 6 6 10 10 Liabilities: Short-term debt 2 (2 ) (2 ) (2 ) (2 ) Short-term debt (bonds) 2 - - (749 ) (755 ) Short-term debt (2019 Cash Convertible Senior Notes) 2 (1,105 ) (1,327 ) (1,059 ) (1,418 ) Long-term debt (bonds) 2 (6,222 ) (6,191 ) (4,728 ) (4,879 ) Other long-term debt 2 (25 ) (25 ) (27 ) (27 ) Notes Embedded Conversion Derivative 3 (24 ) (24 ) (301 ) (301 ) Derivative instruments-liabilities 2 (2 ) (2 ) - - |
Segments and Geographical Inf_2
Segments and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Detailed information by segment for the years 2018, 2017 and 2016 is presented in the following tables. Revenue 2018 2017 2016 HPMS 9,022 8,745 8,086 SP - 118 1,220 Corporate and Other (1) 385 393 192 9,407 9,256 9,498 Operating income (loss) 2018 2017 2016 HPMS 807 656 (302 ) SP - 31 268 Corporate and Other (1) 1,903 1,415 (116 ) 2,710 2,102 (150 ) (1) Corporate and Other is not a reporting segment under ASC 280 “Segment Reporting”. Corporate and Other includes revenue related to manufacturing operations, unallocated expenses not related to any specific business segment and corporate restructuring charges. |
Goodwill Assigned to Segments | Goodwill assigned to segments Cost at January 1, 2018 Acquisitions Translation differences and other changes Cost at December 31, 2018 HPMS 8,750 11 (60 ) 8,701 Corporate and Other (1) 270 - - 270 9,020 11 (60 ) 8,971 Accumulated impairment at January 1, 2018 Translation differences and other changes Accumulated impairment at December 31, 2018 HPMS (154 ) 40 (114 ) Corporate and Other (1) - - - (154 ) 40 (114 ) (1) Corporate and Other is not a reporting segment under ASC 280 “Segment Reporting”. |
Geographical Segment Report | Geographical Information Revenue (1) Property, plant and equipment, net 2018 2017 2016 2018 2017 2016 China 3,430 3,640 3,882 287 281 251 Netherlands 349 304 285 214 198 183 United States 919 922 906 782 770 922 Singapore 1,220 1,082 984 298 211 166 Germany 531 570 623 55 57 52 Japan 735 750 550 - - 1 South Korea 357 356 369 - - - Malaysia 112 103 231 373 369 378 Other countries 1,754 1,529 1,668 427 409 399 9,407 9,256 9,498 2,436 2,295 2,352 (1) Revenue attributed to geographic areas is based on the customer’s shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). |
The Company - Additional Inform
The Company - Additional Information (Detail) - USD ($) | Jan. 07, 2019 | Nov. 16, 2018 | Oct. 05, 2018 | Sep. 19, 2018 | Jul. 26, 2018 | Feb. 06, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 06, 2018 | Nov. 01, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Principal amount of debt | $ 7,400,000,000 | $ 6,650,000,000 | |||||||||
Interim dividends paid per ordinary share | $ 0.25 | ||||||||||
Interim dividends payable date | Oct. 5, 2018 | ||||||||||
Percentage of shares cancelled | 5.00% | ||||||||||
Number of shares cancelled | 17,300,143 | ||||||||||
Common stock, Issued and fully paid | 328,702,719 | 328,702,719 | 346,002,862 | ||||||||
Cash proceeds, net of cash divested | $ 159,000,000 | $ 2,682,000,000 | $ 20,000,000 | ||||||||
SP [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Cash proceeds, net of cash divested | $ 2,600,000,000 | ||||||||||
SP [Member] | Nexperia [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Cash proceeds, net of cash divested | $ 2,600,000,000 | ||||||||||
Qualcomm [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Contract termination date | Jul. 26, 2018 | ||||||||||
Termination compensation received | $ 2,000,000,000 | ||||||||||
Repurchase of common stock, authorized | $ 5,000,000,000 | ||||||||||
Repurchase of common stock, authorized, Shares | 15,000,000 | ||||||||||
Repurchased common, Shares | 54,400,000 | ||||||||||
Repurchased common, Value | $ 5,000,000,000 | ||||||||||
Percentage of shares cancelled | 5.00% | ||||||||||
Number of shares cancelled | 17,300,143 | ||||||||||
Common stock, Issued and fully paid | 328,702,719 | ||||||||||
Subsequent Event [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Interim dividends paid per ordinary share | $ 0.25 | ||||||||||
Interim dividends payable date | Jan. 7, 2019 | ||||||||||
Senior Unsecured Notes Due 2024 [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Principal amount of debt | $ 1,000,000,000 | ||||||||||
Fixed rate on notes | 4.875% | ||||||||||
Senior Unsecured Notes Due 2026 [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Principal amount of debt | $ 500,000,000 | ||||||||||
Fixed rate on notes | 5.35% | ||||||||||
Senior Unsecured Notes Due 2028 [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Principal amount of debt | $ 500,000,000 | ||||||||||
Fixed rate on notes | 5.55% | ||||||||||
Senior Unsecured Bridge Term Credit Facility Agreement [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Amount of credit facility | $ 1,000,000,000 | ||||||||||
Senior Unsecured Bridge Term Credit Facility Agreement [Member] | Bridge Loan [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Principal amount of debt | $ 1,000,000,000 | ||||||||||
Debt instrument maturity date description | The Bridge Loan was to mature on September 18, 2019 | ||||||||||
Senior Unsecured Bridge Term Credit Facility Agreement [Member] | Bridge Loan [Member] | LIBOR [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Debt instrument applicable margin rate | 1.50% |
Significant Accounting Polici_4
Significant Accounting Policies - Exchange Rates for U.S. Dollars into Euros Applicable for Translation of NXP's Financial Statements (Detail) - € / $ | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | 1.1451 | 1.1932 | 1.0474 | |
Average [Member] | ||||
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | [1] | 1.1794 | 1.1310 | 1.1065 |
Maximum [Member] | ||||
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | 1.1352 | 1.0474 | 1.0474 | |
Minimum [Member] | ||||
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | 1.2431 | 1.1932 | 1.1423 | |
[1] | The average of the noon-buying rate at the end of each fiscal month during the period presented. |
Significant Accounting Polici_5
Significant Accounting Policies - Gross Notional Amounts of Company's Foreign Currency Derivatives by Currency (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Euro [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | $ 1,100,000,000 | $ 696,000,000 |
Chinese Renminbi [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 127,000,000 | 132,000,000 |
Japanese Yen [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 21,000,000 | 29,000,000 |
Malaysian Ringgit [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 82,000,000 | 89,000,000 |
Singapore Dollar [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 57,000,000 | 64,000,000 |
Swiss Franc [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 25,000,000 | 34,000,000 |
Taiwan Dollar [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 102,000,000 | 122,000,000 |
Thai Baht [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 75,000,000 | 68,000,000 |
Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | $ 51,000,000 | $ 16,000,000 |
Significant Accounting Polici_6
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Minimum employment period for recognizing termination benefits | 60 days | |||
Percentage of income tax benefit recognized | 50.00% | |||
Percentage of fair value of plan assets | 10.00% | |||
ASU No. 2014-09 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Net increase to opening balance of retained earnings | $ 14 | |||
Distributors Concentration Risk [Member] | Distributor A [Member] | Sales Revenue, Net [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of revenue from a single external customer | 14.00% | 15.00% | 13.00% | |
Distributors Concentration Risk [Member] | Distributor B [Member] | Sales Revenue, Net [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of revenue from a single external customer | 10.00% | |||
Distributors Concentration Risk [Member] | OEMs [Member] | Sales Revenue, Net [Member] | Customer One [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of revenue from a single external customer | 11.00% | 11.00% | ||
Minimum [Member] | Distributors Concentration Risk [Member] | Other Distributor [Member] | Sales Revenue, Net [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of revenue from a single external customer | 10.00% | 10.00% | 10.00% | |
Minimum [Member] | Distributors Concentration Risk [Member] | OEMs [Member] | Sales Revenue, Net [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of revenue from a single external customer | 10.00% | 10.00% | 10.00% | |
Maximum [Member] | Distributors Concentration Risk [Member] | Distributor B [Member] | Sales Revenue, Net [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of revenue from a single external customer | 10.00% | 10.00% | ||
Maximum [Member] | Distributors Concentration Risk [Member] | OEMs [Member] | Sales Revenue, Net [Member] | Customer One [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of revenue from a single external customer | 10.00% | |||
Long Term Incentive Plans [Member] | Stock Options [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period | 4 years | |||
Long Term Incentive Plans [Member] | Restricted Share Units [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period | 1 year | |||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period | 3 years |
Acquisitions and Divestments -
Acquisitions and Divestments - Additional Information (Detail) $ in Millions | Jul. 10, 2018USD ($) | Apr. 19, 2017USD ($) | Feb. 06, 2017USD ($) | Aug. 08, 2016USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)Business | Dec. 31, 2017USD ($)Business | Dec. 31, 2016USD ($)Business |
Business Acquisition [Line Items] | ||||||||
Number of material acquisitions | Business | 0 | 0 | ||||||
Cash proceeds, net of cash divested | $ 159 | $ 2,682 | $ 20 | |||||
Equity method investment ownership percentage | 0.00% | 0.00% | ||||||
Number of material divestments | Business | 0 | |||||||
Purchase price allocation to goodwill | $ 11 | |||||||
Other intangible assets, amortization period | 4 years | |||||||
Other Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | $ 200 | |||||||
Purchase price allocation to goodwill | 14 | |||||||
Purchase price allocation to other intangible assets | 177 | |||||||
Purchase price allocation to inventories | 8 | |||||||
Purchase price allocation to tangible fixed assets | 1 | |||||||
Other Acquisition [Member] | Core Technology [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price allocation to other intangible assets | $ 172 | |||||||
Other intangible assets, amortization period | 7 years | |||||||
Other Acquisition [Member] | Existing Technology [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price allocation to other intangible assets | $ 5 | |||||||
Other intangible assets, amortization period | 2 years | |||||||
Other Income (Expense) [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Gain (loss) on sale of business | $ 1,597 | |||||||
SP [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash proceeds, net of cash divested | $ 2,600 | |||||||
Suzhou ASEN Semiconductors Company Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Sale of equity interest, percentage | 40.00% | |||||||
Total consideration | $ 127 | |||||||
Net gain realized on sale of equity method investment | $ 51 | |||||||
WeEn [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Sale of equity interest, percentage | 24.00% | |||||||
Cash proceeds, net of cash divested | $ 32 | |||||||
Equity method investment ownership percentage | 0.00% | 49.00% | ||||||
ASMC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration | $ 54 | |||||||
Net gain realized on sale of equity method investment | $ 31 | |||||||
Equity method investment ownership percentage | 27.47% |
Acquisitions and Divestments _2
Acquisitions and Divestments - Gain on Sale of Business (Detail) - Other Income (Expense) [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Total cash consideration | $ 2,750 |
Assets held for sale | (1,117) |
Cash divested | (138) |
Liabilities held for sale | 199 |
Other adjustments | (69) |
Transaction costs | (28) |
Gain | $ 1,597 |
Supplemental Financial Inform_3
Supplemental Financial Information - Revenue Disaggregated by Sales Channel (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | [2] | Dec. 31, 2016 | [2] | ||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenue | [1] | $ 9,407 | $ 9,256 | $ 9,498 | ||
Distributors [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenue | 4,865 | 4,734 | 4,644 | |||
Original Equipment Manufacturers and Electronic Manufacturing Services [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenue | 4,157 | 4,129 | 4,662 | |||
Other [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenue | [3] | $ 385 | $ 393 | $ 192 | ||
[1] | Revenue attributed to geographic areas is based on the customer’s shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). | |||||
[2] | As noted above, prior period amounts have not been adjusted for the impact of adopting ASC 606 under the modified retrospective method. | |||||
[3] | Represents revenues in Corporate and Other for other services. |
Supplemental Financial Inform_4
Supplemental Financial Information - Depreciation, Amortization and Impairment (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Property, Plant and Equipment [Line Items] | ||||
Depreciation of property, plant and equipment | $ 478 | $ 611 | $ 609 | |
Amortization of intangible assets | 1,509 | 1,539 | ||
Depreciation, amortization and impairment | 1,987 | 2,173 | 2,205 | |
Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization of intangible assets | 8 | 21 | 24 | |
Other Intangible Assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization of intangible assets | [1] | $ 1,501 | $ 1,541 | $ 1,572 |
[1] | For the period ending December 31, 2017, the amount includes IPR&D impairment charges of $23 million, of which $16 million related to assets acquired from Freescale. For the period ending December 31, 2016, the amount included impairment charges relative to IPR&D acquired as part of the acquisition of Freescale of $89 million. |
Supplemental Financial Inform_5
Supplemental Financial Information - Depreciation, Amortization and Impairment (Parenthetical) (Detail) - In-Process Research and Development [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Impairment charges | $ 23 | $ 0 |
Freescale Semiconductor, Ltd. [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Impairment charges | $ 16 | $ 89 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Income (Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Result on disposal of businesses | $ 39 | $ 1,572 | $ 8 |
Result on disposal of properties | 1 | 1 | 1 |
Other income (expense) | 1,961 | 2 | 0 |
Other income (expense), net | $ 2,001 | $ 1,575 | $ 9 |
Supplemental Financial Inform_7
Supplemental Financial Information - Financial Income (Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Supplemental Income Statement Elements [Abstract] | ||||
Interest income | $ 48 | $ 27 | $ 11 | |
Interest expense | (273) | (310) | (408) | |
Total interest expense, net | (225) | (283) | (397) | |
Net gain (loss) on extinguishment of debt | (26) | (41) | (32) | |
Foreign exchange rate results | (14) | (30) | (15) | |
Miscellaneous financing costs/income, net | [1] | (70) | (12) | (9) |
Total other financial income (expense) | (110) | (83) | (56) | |
Total | $ (335) | $ (366) | $ (453) | |
[1] | For the period ending December 31, 2018, the amount includes one-time charges ($60 million) on certain financial instruments for compensation related to an adjustment event required by the termination of the Qualcomm Purchase Agreement. |
Supplemental Financial Inform_8
Supplemental Financial Information - Financial Income (Expense) (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Qualcomm [Member] | |
Supplemental Financial Information [Line Items] | |
One-time charges on financial instruments for compensation related to purchase agreement | $ 60 |
Supplemental Financial Inform_9
Supplemental Financial Information - Results Relating to Equity-Accounted Investees (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |||
Company’s share in income (loss) | $ 7 | $ 17 | $ 11 |
Other results | 52 | 36 | 0 |
Results relating to equity-accounted investees | $ 59 | $ 53 | $ 11 |
Supplemental Financial Infor_10
Supplemental Financial Information - Summary of Carrying Value of Investments in Equity-Accounted Investees (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 0.00% | 0.00% |
Amount | $ 13 | $ 146 |
ASEN [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 0.00% | 40.00% |
Amount | $ 0 | $ 66 |
WeEn [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 0.00% | 49.00% |
Amount | $ 0 | $ 65 |
Others [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 0.00% | 0.00% |
Amount | $ 13 | $ 15 |
Supplemental Financial Infor_11
Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Millions | Apr. 19, 2017 | Jul. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplemental Financial Information [Line Items] | |||||||
Cash proceeds, net of cash divested | $ 159 | $ 2,682 | $ 20 | ||||
Equity method investment, ownership percent | 0.00% | 0.00% | |||||
Cash and cash equivalents | $ 2,789 | $ 3,547 | $ 1,894 | $ 1,614 | |||
SSMC [Member] | |||||||
Supplemental Financial Information [Line Items] | |||||||
Cash and cash equivalents | 140 | 250 | |||||
Dividend distribution | $ 139 | $ 228 | |||||
SSMC [Member] | TSMC [Member] | |||||||
Supplemental Financial Information [Line Items] | |||||||
Dividend percentage to joint venture | 38.80% | ||||||
ASEN [Member] | |||||||
Supplemental Financial Information [Line Items] | |||||||
Sale of equity interest, percentage | 40.00% | ||||||
Total consideration | $ 127 | ||||||
Equity method investment, ownership percent | 0.00% | 40.00% | |||||
WeEn [Member] | |||||||
Supplemental Financial Information [Line Items] | |||||||
Sale of equity interest, percentage | 24.00% | ||||||
Cash proceeds, net of cash divested | $ 32 | ||||||
Equity method investment, ownership percent | 0.00% | 49.00% | |||||
ASMC [Member] | |||||||
Supplemental Financial Information [Line Items] | |||||||
Total consideration | $ 54 | ||||||
Equity method investment, ownership percent | 27.47% | ||||||
Gain on sale of equity method investment | $ 31 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Employee severance costs included in restructuring liabilities | $ 5,000,000 | $ 7,000,000 | |
Total restructuring liabilities | 65,000,000 | 89,000,000 | $ 151,000,000 |
Restructuring liabilities - current | 60,000,000 | 74,000,000 | |
Restructuring liabilities - non current | 5,000,000 | 15,000,000 | |
Personnel Lay-Off Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee severance costs included in restructuring liabilities | $ 0 | $ 0 | $ 52,000,000 |
Restructuring Charges - Summary
Restructuring Charges - Summary of Changes in Position of Restructuring Liabilities by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | $ 89 | $ 151 | |
Additions | 5 | 7 | |
Utilized | (25) | (65) | |
Released | 0 | (16) | |
Other changes | [1] | (4) | 12 |
Ending Balance | 65 | 89 | |
HPMS [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 86 | 148 | |
Additions | 5 | 7 | |
Utilized | (25) | (65) | |
Released | 0 | (16) | |
Other changes | [1] | (4) | 12 |
Ending Balance | 62 | 86 | |
Corporate and Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 3 | 0 | |
Additions | 0 | 0 | |
Utilized | 0 | 0 | |
Released | 0 | 0 | |
Other changes | [1] | 0 | 3 |
Ending Balance | 3 | 3 | |
SP [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | $ 0 | 3 | |
Additions | 0 | ||
Utilized | 0 | ||
Released | 0 | ||
Other changes | [1] | (3) | |
Ending Balance | $ 0 | ||
[1] | Other changes primarily related to translation differences and internal transfers. |
Restructuring Charges - Compone
Restructuring Charges - Components of Restructuring Charges Less Releases Recorded in Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ 6 | $ 1 | $ 68 |
Personnel Lay-Off Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 4 | 7 | 52 |
Other Exit Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 2 | 10 | 19 |
Release of Provisions/Accruals [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ 0 | $ (16) | $ (3) |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges Less Releases Recorded in Liabilities Per Line Item in Statement of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ 6 | $ 1 | $ 68 |
Cost of Revenue [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 0 | 3 | 18 |
Selling, General and Administrative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 7 | 10 | 9 |
Research and Development [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 0 | (12) | 41 |
Other Income (Expense) [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ (1) | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Line Items] | |||||
Income (loss) before income taxes | $ 2,375 | $ 1,736 | $ (603) | ||
Income tax expense (benefit) | $ 176 | $ (483) | $ (851) | ||
Effective income tax rate reconciliation, percent | 7.40% | (27.80%) | 141.10% | ||
Provision of income tax benefit | $ 734 | ||||
Additional income tax benefit | $ 3 | ||||
Tax benefit on liquidation of former investment | $ 45 | ||||
Income tax holiday expected to expire, year | 2,026 | ||||
Foreign income taxes decreases due to impact of tax holiday | $ 21 | $ 23 | $ 24 | ||
Benefit of tax holiday on net income per share (diluted) | $ 0.06 | $ 0.07 | $ 0.07 | ||
Increase (decrease) in valuation allowance | $ 5 | $ 13 | |||
Tax loss carryforwards | 795 | 795 | |||
Tax credit carryforwards | 571 | 571 | |||
Net income tax payable (receivable) excluding liability for unrecognized tax benefits | 154 | 154 | (59) | ||
Deferred tax liability recognized in undistributed earnings of foreign subsidiaries | 96 | 96 | 109 | ||
Total unrecognized tax benefits, if recognized, would impact the effective tax rate | 138 | 138 | |||
Underpayment of tax benefits relates to interest and penalties | 3 | 6 | $ 2 | ||
Liability for related interest and penalties | 14 | 14 | 17 | $ 12 | |
United States [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax loss carryforwards | $ 228 | $ 228 | |||
United States [Member] | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,005 | ||||
United States [Member] | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
Netherlands [Member] | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,015 | ||||
Netherlands [Member] | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
Germany [Member] | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,004 | ||||
Germany [Member] | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
China [Member] | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,008 | ||||
China [Member] | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
Taiwan [Member] | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,013 | ||||
Taiwan [Member] | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
THAILAND | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,013 | ||||
THAILAND | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
Malaysia [Member] | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,011 | ||||
Malaysia [Member] | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
INDIA | Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,004 | ||||
INDIA | Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax years remain subject to examination | 2,017 | ||||
Dutch Tax Authorities [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Additional income tax benefit of recognized | $ 67 | ||||
SP [Member] | Dutch Tax Authorities [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Gain (loss) on sale of business | $ 1,597 | ||||
Qualcomm [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Break-up fee received | $ 2,000 | ||||
Qualcomm [Member] | Dutch Tax Authorities [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Break-up fee received | $ 2,000 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Netherlands | $ 2,570 | $ 1,679 | $ 537 |
Foreign | (195) | 57 | (1,140) |
Income (loss) before income taxes | $ 2,375 | $ 1,736 | $ (603) |
Income Taxes - Components of Be
Income Taxes - Components of Benefit (Expense) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current taxes: | |||
Netherlands, Current taxes | $ (296) | $ (179) | $ (7) |
Foreign, Current taxes | (91) | (135) | (67) |
Total Current taxes | (387) | (314) | (74) |
Deferred taxes: | |||
Netherlands, Deferred taxes | 2 | (259) | 205 |
Foreign, Deferred taxes | 209 | 1,056 | 720 |
Total Deferred taxes | 211 | 797 | 925 |
Total benefit (expense) for income taxes | $ (176) | $ 483 | $ 851 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Income Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
Statutory income tax in the Netherlands | 25.00% | 25.00% | 25.00% | |
Rate differential local statutory rates versus statutory rate of the Netherlands | 0.80% | (4.50%) | 24.20% | |
Net change in valuation allowance | 0.40% | 1.10% | 72.60% | |
Non-deductible expenses/losses | 2.70% | 2.20% | (7.00%) | |
Sale of non-deductible goodwill | 0.00% | 3.80% | 0.00% | |
The U.S. Tax Cuts and Jobs Act | (0.10%) | [1] | (42.30%) | 0.00% |
Tax on gains related to internal corporate reorganization transaction | 0.00% | 0.00% | (10.30%) | |
Netherlands tax incentives | (10.60%) | (7.50%) | 17.90% | |
Foreign tax incentives | (3.70%) | (4.70%) | 13.00% | |
Adjustments of prior years' income taxes | (3.50%) | (0.30%) | 0.10% | |
Other differences | (3.60%) | (0.60%) | 5.60% | |
Effective tax rate | 7.40% | (27.80%) | 141.10% | |
[1] | This is only relating to the 2017 income tax provision. |
Income Taxes - Principal Compon
Income Taxes - Principal Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Operating loss and tax credit carryforwards | $ 598 | $ 621 |
Disallowed interest carryforwards | 117 | 156 |
Other accrued liabilities | 83 | 100 |
Pensions | 83 | 93 |
Share-based compensation | 18 | 25 |
Restructuring liabilities | 12 | 16 |
Receivables | 83 | 71 |
Inventories | 2 | 3 |
Other assets | 2 | 2 |
Total Gross Deferred Tax Assets | 998 | 1,087 |
Valuation Allowance | (145) | (140) |
Total Net Deferred Tax Assets | 853 | 947 |
Intangible assets (including purchase accounting basis difference) | (867) | (1,161) |
Undistributed earnings of foreign subsidiaries | (96) | (109) |
Property, plant and equipment (including purchase accounting basis difference) | (47) | (54) |
Total Deferred Tax Liabilities | (1,010) | (1,324) |
Net deferred tax assets (liabilities) | $ (157) | $ (377) |
Income Taxes - Classification o
Income Taxes - Classification of Deferred Tax Assets and Liabilities in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets within other non-current assets | $ 293 | $ 324 |
Deferred tax liabilities within non-current liabilities | (450) | (701) |
Net deferred tax assets (liabilities) | $ (157) | $ (377) |
Income Taxes - Expiration of Ta
Income Taxes - Expiration of Tax Loss Carryforwards (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 795 |
2019 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 22 |
2020 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 6 |
2021 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 1 |
2022 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 16 |
2023 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 3 |
2024-2028 Tax Loss Credit Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 129 |
Later Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 181 |
Unlimited Tax Credit Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 437 |
Income Taxes - Expiration of _2
Income Taxes - Expiration of Tax Credit Carryforwards (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 571 |
2019 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 12 |
2020 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 16 |
2021 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 1 |
2022 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 11 |
2023 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 10 |
2024-2028 Tax Loss Credit Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 186 |
Later Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 281 |
Unlimited Tax Credit Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 54 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance as of January 1, | $ 177 | $ 146 | $ 149 |
Translation differences | (4) | 4 | 1 |
Decreases from activities which are held for sale | 0 | 0 | (7) |
Increases from tax positions taken during prior periods | 7 | 19 | 1 |
Decreases from tax positions taken during prior periods | (17) | 0 | (3) |
Increases from tax positions taken during current period | 7 | 10 | 9 |
Decreases relating to settlements with the tax authorities | (5) | (2) | (4) |
Balance as of December 31, | $ 165 | $ 177 | $ 146 |
Earnings per Share - Computatio
Earnings per Share - Computation of Earnings per Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 2,258 | $ 2,272 | $ 259 | |
Less: Net income (loss) attributable to non-controlling interests | 50 | 57 | 59 | |
Net income (loss) attributable to stockholders | $ 2,208 | $ 2,215 | $ 200 | |
Weighted average number of shares outstanding (after deduction of treasury shares) during the year | 325,781 | 338,646 | 338,477 | |
Plus incremental shares from assumed conversion of: | ||||
Options | [1] | 1,145 | 4,517 | 5,582 |
Restricted Share Units, Performance Share Units and Equity Rights | [2] | 1,680 | 2,639 | 3,548 |
Warrants | [3] | 0 | 0 | 0 |
Dilutive potential common share | 2,825 | 7,156 | 9,130 | |
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year | [1] | 328,606 | 345,802 | 347,607 |
Basic net income (loss) | $ 6.78 | $ 6.54 | $ 0.59 | |
Diluted net income (loss) | $ 6.72 | $ 6.41 | $ 0.58 | |
[1] | Stock options to purchase up to 0.1 million shares of NXP’s common stock that were outstanding in 2018 (2017: 0.1 million shares; 2016: 1.4 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. | |||
[2] | Unvested RSU’s, PSU’s and equity rights of 0.9 million shares that were outstanding in 2018 (2017: 0.7 million shares; 2016: 0.9 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSU’s, PSU’s and equity rights or the performance goal has not been met. | |||
[3] | Warrants to purchase up to 11.2 million shares of NXP’s common stock at a price of $132.55 per share were outstanding in 2018 (2017: 11.2 million shares at a price of $133.32; 2016: 11.2 million shares at a price of $133.32). Upon exercise, the warrants will be net share settled. At the end of 2018, 2017 and 2016, the warrants were not included in the computation of diluted EPS because the warrants’ exercise price was greater than the average fair market value of the common shares. |
Earnings per Share - Computat_2
Earnings per Share - Computation of Earnings per Share (EPS) (Parenthetical) (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Exercise price of warrants | $ 132.55 | $ 133.32 | $ 133.32 |
Stock Options [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share amount | 0.1 | 0.1 | 1.4 |
Unvested RSU's, PSU's and Equity Rights [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share amount | 0.9 | 0.7 | 0.9 |
Warrant [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share amount | 11.2 | 11.2 | 11.2 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 314 | $ 281 | $ 338 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 40 | 33 | 49 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 133 | 122 | 123 |
Selling, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 141 | $ 126 | $ 166 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) | Jul. 26, 2018$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017€ / shares | Dec. 31, 2016€ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Tax (expense) benefits recognized for stock-based compensation | $ 27,000,000 | $ 51,000,000 | $ 58,000,000 | ||||
Excess tax benefit related to share-based compensation | 4,000,000 | 27,000,000 | |||||
Amount received on stock options exercised | $ 39,000,000 | 233,000,000 | 115,000,000 | ||||
Long Term Incentive Plans [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized and available for awards | shares | 2,500,000 | 2,500,000 | |||||
Charges for plan | $ 307,000,000 | $ 272,000,000 | $ 331,000,000 | ||||
Risk-free interest rate, minimum | 0.80% | 0.80% | 0.80% | ||||
Risk-free interest rate, maximum | 2.10% | 2.80% | 2.80% | ||||
Expected dividend payments | $ 0 | ||||||
Stock options, Granted | shares | 0 | 0 | 0 | ||||
Weighted average grant date fair value of stock options | $ / shares | $ 34.59 | ||||||
Intrinsic value of exercised options | $ 59,000,000 | $ 311,000,000 | $ 145,000,000 | ||||
Amount received on stock options exercised | 30,000,000 | 137,000,000 | 88,000,000 | ||||
Tax benefit realized from exercise of stock options | 34,000,000 | 83,000,000 | $ 79,000,000 | ||||
Unrecognized compensation cost | $ 7,000,000 | $ 25,000,000 | $ 7,000,000 | ||||
Weighted-average period for recognition of compensation cost | 9 months 18 days | 1 year 2 months 12 days | |||||
Long Term Incentive Plans [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected life | 6 years 3 months | ||||||
Volatility rate | 50.00% | ||||||
Long Term Incentive Plans [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected life | 5 years 9 months 3 days | ||||||
Volatility rate | 40.00% | ||||||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average grant date fair value of units granted | $ / shares | $ 121.37 | ||||||
Compensation cost recognized period | 3 years | ||||||
Weighted-average period for recognition of compensation cost | 2 years 7 months 6 days | 1 year 3 months 18 days | 1 year 9 months 18 days | ||||
Fair value of vested shares | $ 6,000,000 | $ 39,000,000 | $ 147,000,000 | ||||
Unrecognized compensation cost | $ 143,000,000 | $ 4,000,000 | $ 12,000,000 | 143,000,000 | |||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | Financial Performance Conditions [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average grant date fair value of units granted | $ / shares | $ 0 | $ 0 | $ 82.53 | ||||
Shares, Granted | shares | 0 | 0 | |||||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | Market Performance Conditions [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average grant date fair value of units granted | $ / shares | $ 121.18 | ||||||
Shares, Granted | shares | 1,484,882 | ||||||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Granted common shares per target units | shares | 2 | ||||||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Granted common shares per target units | shares | 0 | ||||||
Long Term Incentive Plans [Member] | Restricted Share Units [Member] | |||||||
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 | $ / shares | $ 84.77 | $ 115.05 | $ 98.16 | ||||
Weighted-average period for recognition of compensation cost | 1 year 6 months | 1 year 7 months 6 days | 1 year 7 months 6 days | ||||
Shares, Granted | shares | 3,552,823 | ||||||
Fair value of vested shares | $ 263,000,000 | $ 328,000,000 | $ 334,000,000 | ||||
Unrecognized compensation cost | $ 484,000,000 | 483,000,000 | 422,000,000 | $ 484,000,000 | |||
Long Term Incentive Plans [Member] | Special Termination Benefits [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Management Equity Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Charges for plan | $ 0 | 0 | 0 | ||||
Stock options, Granted | shares | 0 | ||||||
Intrinsic value of exercised options | $ 16,000,000 | 206,000,000 | 13,000,000 | ||||
Amount received on stock options exercised | $ 9,000,000 | $ 60,000,000 | $ 7,000,000 | ||||
Number of vested stock options | shares | 0 | 231,924 | 2,534,272 | 0 | |||
Weighted average exercise price of vested options | € / shares | € 35.72 | € 23.67 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Options and Changes (Long Term Incentive Plans) (Detail) - Long Term Incentive Plans [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 36 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, Outstanding at January 1, 2018 | 2,981,033 | ||
Stock options, Granted | 0 | 0 | 0 |
Stock options, Exercised | 803,391 | ||
Stock options, Forfeited | 73,554 | ||
Stock options, Outstanding at December 31, 2018 | 2,104,088 | 2,981,033 | 2,104,088 |
Stock options, Exercisable at December 31, 2018 | 1,583,001 | 1,583,001 | |
Weighted average exercise price, Outstanding at January 1, 2018 | $ 48.39 | ||
Weighted average exercise price, Granted | 0 | ||
Weighted average exercise price, Exercised | 37.13 | ||
Weighted average exercise price, Forfeited | 73.43 | ||
Weighted average exercise price, Outstanding at December 31, 2018 | 51.81 | $ 48.39 | $ 51.81 |
Weighted average exercise price, Exercisable at December 31, 2018 | $ 43.14 | $ 43.14 | |
Weighted average remaining contractual term, Outstanding at December 31, 2018 | 4 years 8 months 12 days | ||
Weighted average remaining contractual term, Exercisable at December 31, 2018 | 4 years 1 month 6 days | ||
Aggregate intrinsic value, Outstanding at December 31, 2018 | $ 49 | $ 49 | |
Aggregate intrinsic value, Exercisable at December 31, 2018 | $ 48 | $ 48 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Performance Share Units (Detail) - Long Term Incentive Plans [Member] - Performance Share Units [Member] - $ / shares | Jul. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value, Granted | $ 121.37 | |||
Financial Performance Conditions [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, Outstanding at January 1, 2018 | 282,938 | |||
Shares, Granted | 0 | 0 | ||
Shares, Vested | 41,335 | |||
Shares, Forfeited | 19,107 | |||
Shares, Outstanding at December 31, 2018 | 222,496 | 282,938 | ||
Weighted average grant date fair value, Outstanding at January 1, 2018 | $ 74.31 | |||
Weighted average grant date fair value, Granted | 0 | $ 0 | $ 82.53 | |
Weighted average grant date fair value, Vested | 63.53 | |||
Weighted average grant date fair value, Forfeited | 86.36 | |||
Weighted average grant date fair value, Outstanding at December 31, 2018 | $ 75.28 | $ 74.31 | ||
Market Performance Conditions [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, Outstanding at January 1, 2018 | 37,791 | |||
Shares, Granted | 1,484,882 | |||
Shares, Vested | 37,791 | |||
Shares, Forfeited | 5,896 | |||
Shares, Outstanding at December 31, 2018 | 1,478,986 | 37,791 | ||
Weighted average grant date fair value, Outstanding at January 1, 2018 | $ 40.28 | |||
Weighted average grant date fair value, Granted | 121.18 | |||
Weighted average grant date fair value, Vested | 40.28 | |||
Weighted average grant date fair value, Forfeited | 121.37 | |||
Weighted average grant date fair value, Outstanding at December 31, 2018 | $ 121.18 | $ 40.28 |
Share-based Compensation - Su_3
Share-based Compensation - Summary of Restricted Share Units (Detail) - Long Term Incentive Plans [Member] - Restricted Share Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at January 1, 2018 | 6,411,610 | ||
Shares, Granted | 3,552,823 | ||
Shares, Vested | 3,083,601 | ||
Shares, Forfeited | 369,268 | ||
Shares, Outstanding at December 31, 2018 | 6,511,564 | 6,411,610 | |
Weighted average grant date fair value, Outstanding at January 1, 2018 | $ 101.13 | ||
Weighted average grant date fair value, Granted | 84.77 | $ 115.05 | $ 98.16 |
Weighted average grant date fair value, Vested | 95.61 | ||
Weighted average grant date fair value, Forfeited | 102.84 | ||
Weighted average grant date fair value, Outstanding at December 31, 2018 | $ 94.73 | $ 101.13 |
Share-based Compensation - Su_4
Share-based Compensation - Summary of Stock Options and Changes (Management Equity Stock Option Plan) (Detail) - Management Equity Stock Option Plan [Member] | 12 Months Ended |
Dec. 31, 2018€ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, Outstanding at January 1, 2018 | shares | 231,924 |
Stock options, Granted | shares | 0 |
Stock options, Exercised | shares | 231,924 |
Stock options, Forfeited | shares | 0 |
Stock options, Expired | shares | 0 |
Stock options, Outstanding at December 31, 2018 | shares | 0 |
Weighted average exercise price, Outstanding at January 1, 2018 | € / shares | € 35.72 |
Weighted average exercise price, Granted | € / shares | 0 |
Weighted average exercise price, Exercised | € / shares | 35.72 |
Weighted average exercise price, Forfeited | € / shares | 0 |
Weighted average exercise price, Expired | € / shares | 0 |
Weighted average exercise price, Outstanding at December 31, 2018 | € / shares | € 0 |
Accounts Receivable, Net - Acco
Accounts Receivable, Net - Accounts Receivable, net (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Accounts receivable from third parties | $ 795 | $ 882 |
Allowance for doubtful accounts | (3) | (3) |
Accounts receivable | $ 792 | $ 879 |
Accounts Receivable, Net - Summ
Accounts Receivable, Net - Summary of Accounts Receivable, Net Disaggregated By Sales Channel (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net | $ 792 | $ 879 | |
Distributors [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net | 93 | 150 | |
Original Equipment Manufacturers and Electronic Manufacturing Services [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net | 651 | 632 | |
Other [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net | [1] | $ 48 | $ 97 |
[1] | Represents accounts receivable, net in Corporate and Other for other services |
Inventories, Net - Inventories,
Inventories, Net - Inventories, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 74 | $ 62 |
Work in process | 949 | 901 |
Finished goods | 256 | 273 |
Inventory net | $ 1,279 | $ 1,236 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Portion of finished goods stored at customer locations under consignment | $ 52 | $ 69 |
Allowance for obsolescence | $ 111 | $ 107 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 5,735 | $ 5,170 | |
Less accumulated depreciation | (3,299) | (2,875) | |
Property, plant and equipment, net of accumulated depreciation | 2,436 | 2,295 | $ 2,352 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 165 | 166 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,246 | 1,200 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 9 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 50 years | ||
Machinery and Installations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 3,509 | 3,179 | |
Machinery and Installations [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 2 years | ||
Machinery and Installations [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 10 years | ||
Other Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 537 | 453 | |
Other Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 1 year | ||
Other Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 5 years | ||
Prepayments and Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 278 | $ 172 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Gross | $ 5,735 | $ 5,170 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Gross | $ 165 | $ 166 |
Identified Intangible Assets -
Identified Intangible Assets - Summary of Changes in Identified Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance, Cost | $ 9,335 | $ 9,512 |
Beginning balance, Accumulated amortization/impairment | (3,472) | (2,169) |
Beginning balance, Book value | 5,863 | 7,343 |
Changes in book value: | ||
Acquisitions/additions | 114 | 78 |
Amortization | (1,509) | (1,539) |
Impairment | (23) | |
Translation differences | (1) | 4 |
Total changes | (1,396) | (1,480) |
Ending balance, Cost | 9,183 | 9,335 |
Ending balance, Accumulated amortization/impairment | (4,716) | (3,472) |
Ending balance, Book value | $ 4,467 | $ 5,863 |
Identified Intangible Assets _2
Identified Intangible Assets - Summary of Identified Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | $ 9,183 | $ 9,335 | ||
Accumulated amortization | (4,716) | (3,472) | $ (2,169) | |
In-Process Research and Development [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | [1] | 276 | 687 | |
Accumulated amortization | [1] | 0 | 0 | |
Marketing-related [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 81 | 82 | ||
Accumulated amortization | (50) | (34) | ||
Customer-related [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 964 | 1,155 | ||
Accumulated amortization | (301) | (437) | ||
Technology-Based Intangible Assets [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 7,862 | 7,411 | ||
Accumulated amortization | $ (4,365) | $ (3,001) | ||
[1] | IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort. |
Identified Intangible Assets _3
Identified Intangible Assets - Schedule of Estimated Amortization Expense for Identified Intangible Assets, excluding Software (Detail) - Other Intangible Assets [Member] $ in Millions | Dec. 31, 2018USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2,019 | $ 1,533 |
2,020 | 1,308 |
2,021 | 504 |
2,022 | 418 |
2,023 | $ 230 |
Identified Intangible Assets _4
Identified Intangible Assets - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Expected weighted average remaining life of identified intangibles | 4 years |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Beginning balance, Cost | $ 9,020 | $ 9,029 |
Accumulated impairment at January 1, 2018 | (154) | (186) |
Beginning balance, Book value | 8,866 | 8,843 |
Changes in book value: | ||
Acquisitions | 11 | |
Translation differences | (20) | 51 |
Total changes | (9) | 23 |
Ending balance, Cost | 8,971 | 9,020 |
Accumulated impairment at December 31, 2018 | (114) | (154) |
Ending balance, Book value | 8,857 | 8,866 |
Freescale Semiconductor, Ltd. [Member] | ||
Changes in book value: | ||
Purchase accounting and other adjustments related to Freescale acquisition | $ 0 | $ (28) |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment charges | $ 0 | $ 0 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018USD ($)CompanyParticipant | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Amount included in statement of operations | $ 105,000,000 | $ 97,000,000 | $ 102,000,000 | |
Defined contribution plans | 49,000,000 | 42,000,000 | 44,000,000 | |
PME multi-employer plans | 30,000,000 | 31,000,000 | 32,000,000 | |
Total (benefit) cost of defined-benefit plans | 26,000,000 | (1,000,000) | 26,000,000 | |
Ongoing cost | $ 26,000,000 | 24,000,000 | 27,000,000 | |
Gain on curtailments and settlements | 25,000,000 | $ 1,000,000 | ||
Increase in discount rate | 1.00% | |||
Increase in net periodic pension cost | $ 3,000,000 | |||
Decrease in discount rate | 1.00% | |||
Decrease in net periodic pension cost | $ 3,000,000 | |||
Estimated net actuarial loss (gain) | 3,000,000 | |||
Estimated prior service cost | 0 | |||
Pension plan assets | 201,000,000 | |||
Employer contribution to defined-benefit pension plans | 12,000,000 | |||
Expected cash payments to unfunded plans | 8,000,000 | |||
Accumulated postretirement health care benefit obligation | 11,000,000 | $ 14,000,000 | ||
German and Japanese [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Pension plan assets | $ 179,000,000 | |||
PME Multi-Employer Plan [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Number of companies | Company | 1,376 | |||
Number of participants | Participant | 625,000 | |||
Contribution rate | 25.35% | |||
PME Multi-Employer Plan [Member] | Scenario, Forecast [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Contribution rate | 25.02% |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Summary of PME Multi-Employer Plan (Detail) - PME Multi-Employer Plan [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Employee | Dec. 31, 2017USD ($)Employee | Dec. 31, 2016USD ($)Employee | |
Multiemployer Plans [Line Items] | |||
NXP’s contributions to the plan | $ 34 | $ 35 | $ 36 |
(including employees’ contributions) | $ 4 | $ 4 | $ 4 |
Average number of NXP’s active employees participating in the plan | Employee | 2,183 | 2,271 | 2,415 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Summary of PME Multi-Employer Plan (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PME Multi-Employer Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
NXP’s contribution to the plan exceeded more than 5 percent of the total contribution | false | false | false |
Postretirement Benefit Plans _4
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | $ 16 | $ 15 | $ 17 |
Interest cost | 12 | 11 | 14 |
Fair value of plan assets at end of year | 201 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Total AOCI at beginning of year | 113 | 91 | |
Net actuarial loss (gain) | (16) | 9 | |
Exchange rate differences | (3) | 13 | |
Total AOCI at end of year | 94 | 113 | 91 |
Projected Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation at beginning of year | 651 | 564 | |
Service cost | 16 | 15 | |
Interest cost | 12 | 11 | |
Actuarial (gains) and losses | (12) | 15 | |
Curtailments and settlements | 0 | (1) | |
Benefits paid | (31) | (22) | |
Exchange rate differences | (19) | 69 | |
Projected benefit obligation at end of year | 617 | 651 | 564 |
Plan Assets [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets at beginning of year | 195 | 172 | |
Actual return on plan assets | 4 | 8 | |
Employer contributions | 38 | 18 | |
Curtailments and settlements | 0 | (1) | |
Benefits paid | (31) | (21) | |
Exchange rate differences | (5) | 19 | |
Fair value of plan assets at end of year | 201 | 195 | $ 172 |
Funded Plans with Assets Less than Accumulated Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Funded status | (416) | (456) | |
Classification Of Funded Status | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Accrued pension cost within other non-current liabilities | (407) | (443) | |
Accrued pension cost within accrued liabilities | (9) | (13) | |
Funded status | (416) | (456) | |
Accumulated Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Accumulated benefit obligations | 578 | 613 | |
Plans with Assets Less Than Accumulated Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets, Funded plans | 197 | 190 | |
Accumulated benefit obligations, Funded plans | 348 | 375 | |
Projected benefit obligations, Funded plans | 376 | 401 | |
Accumulated benefit obligations, Unfunded plans | 226 | 233 | |
Projected benefit obligations, Unfunded plans | $ 236 | $ 243 |
Postretirement Benefit Plans _5
Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used to Calculate Projected Benefit Obligations (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Pension And Other Postretirement Benefit Expense [Abstract] | ||
Discount rate | 2.00% | 1.90% |
Rate of compensation increase | 1.80% | 1.80% |
Postretirement Benefit Plans _6
Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used Calculate Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |||
Discount rate | 1.90% | 2.00% | 2.50% |
Expected returns on plan assets | 3.00% | 3.10% | 3.50% |
Rate of compensation increase | 1.80% | 1.90% | 2.20% |
Postretirement Benefit Plans _7
Postretirement Benefit Plans - Components of Net Periodic Pension Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |||
Service cost | $ 16 | $ 15 | $ 17 |
Interest cost on the projected benefit obligation | 12 | 11 | 14 |
Expected return on plan assets | (6) | (6) | (6) |
Amortization of net (gain) loss | 4 | 4 | 2 |
Curtailments & settlements | 0 | (25) | (1) |
Net periodic cost | $ 26 | $ (1) | $ 26 |
Postretirement Benefit Plans _8
Postretirement Benefit Plans - Summary of Actual Pension Plan Asset Allocation (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 33.00% | 32.00% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 44.00% | 47.00% |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 7.00% | 7.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 16.00% | 14.00% |
Postretirement Benefit Plans _9
Postretirement Benefit Plans - Classification of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Level I [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | $ 10 | $ 12 |
Level II [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 157 | 163 |
Level III [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 12 | 8 |
Equity Securities [Member] | Level I [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity Securities [Member] | Level II [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 63 | 62 |
Equity Securities [Member] | Level III [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt Securities [Member] | Level I [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 9 | 10 |
Debt Securities [Member] | Level II [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 64 | 72 |
Debt Securities [Member] | Level III [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Insurance Contracts [Member] | Level I [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Insurance Contracts [Member] | Level II [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 14 | 13 |
Insurance Contracts [Member] | Level III [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other [Member] | Level I [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 1 | 2 |
Other [Member] | Level II [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 16 | 16 |
Other [Member] | Level III [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | $ 12 | $ 8 |
Postretirement Benefit Plans_10
Postretirement Benefit Plans - Summary of Estimated Future Pension Benefit Payments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Pension And Other Postretirement Benefit Expense [Abstract] | |
2,019 | $ 21 |
2,020 | 18 |
2,021 | 19 |
2,022 | 23 |
2,023 | 23 |
Years 2024-2028 | $ 137 |
Debt - Schedule of Short-Term D
Debt - Schedule of Short-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Short-term bank borrowings | $ 0 | $ 0 | |
Current portion of long-term debt | [1] | 1,107 | 751 |
Total | $ 1,107 | $ 751 | |
[1] | Net of adjustment for debt issuance costs. |
Debt - Summary of Outstanding L
Debt - Summary of Outstanding Long-Term Debt (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 7,400,000,000 | $ 6,650,000,000 |
Debt instrument interest rate effective percentage | 0.00% | 0.00% |
Liabilities arising from capital lease transactions | $ 27,000,000 | $ 29,000,000 |
Unamortized discounts, premiums and debt issuance costs | (31,000,000) | (28,000,000) |
Fair value of embedded cash conversion option | (42,000,000) | (86,000,000) |
Total debt, including unamortized discounts, premiums, debt issuance costs [and fair value adjustments] | 7,354,000,000 | 6,565,000,000 |
Long-term debt | ||
Total debt, including unamortized discounts, premiums, debt issuance costs [and fair value adjustments] | 7,354,000,000 | 6,565,000,000 |
Current portion of long-term debt | (1,107,000,000) | (751,000,000) |
Long-term debt | $ 6,247,000,000 | 5,814,000,000 |
Fixed-Rate 3.75% Senior Unsecured Notes Maturing in June 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2018-06 | |
Debt instrument principal amount | $ 0 | $ 750,000,000 |
Debt instrument interest rate effective percentage | 3.75% | 3.75% |
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2020-06 | |
Debt instrument principal amount | $ 600,000,000 | $ 600,000,000 |
Debt instrument interest rate effective percentage | 4.125% | 4.125% |
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2021-06 | |
Debt instrument principal amount | $ 1,350,000,000 | $ 1,350,000,000 |
Debt instrument interest rate effective percentage | 4.125% | 4.125% |
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2022-06 | |
Debt instrument principal amount | $ 400,000,000 | $ 400,000,000 |
Debt instrument interest rate effective percentage | 4.625% | 4.625% |
Fixed-Rate 3.875% Senior Unsecured Notes Maturing in September 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2022-09 | |
Debt instrument principal amount | $ 1,000,000,000 | $ 1,000,000,000 |
Debt instrument interest rate effective percentage | 3.875% | 3.875% |
Fixed-Rate 5.75% Senior Unsecured Notes Maturing in March 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2023-03 | |
Debt instrument principal amount | $ 0 | $ 500,000,000 |
Debt instrument interest rate effective percentage | 5.75% | 5.75% |
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2023-06 | |
Debt instrument principal amount | $ 900,000,000 | $ 900,000,000 |
Debt instrument interest rate effective percentage | 4.625% | 4.625% |
Fixed-Rate 4.875% Senior Unsecured Notes Maturing in March 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2024-03 | |
Debt instrument principal amount | $ 1,000,000,000 | $ 0 |
Debt instrument interest rate effective percentage | 4.875% | 0.00% |
Fixed-Rate 5.35% Senior Unsecured Notes Maturing in March 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2026-03 | |
Debt instrument principal amount | $ 500,000,000 | $ 0 |
Debt instrument interest rate effective percentage | 5.35% | 0.00% |
Fixed-Rate 5.55% Senior Unsecured Notes Maturing in December 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2028-12 | |
Debt instrument principal amount | $ 500,000,000 | $ 0 |
Debt instrument interest rate effective percentage | 5.55% | 0.00% |
Fixed-Rate 1% Cash Convertible Notes Maturing in December 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2019-12 | |
Debt instrument principal amount | $ 1,150,000,000 | $ 1,150,000,000 |
Debt instrument interest rate effective percentage | 1.00% | 1.00% |
Floating-Rate Revolving Credit Facility Maturing in December 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | 2020-12 | |
Debt instrument principal amount | $ 0 | $ 0 |
Debt instrument interest rate effective percentage | 0.00% | 0.00% |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2018 |
Fixed-Rate 3.75% Senior Unsecured Notes Maturing in June 2018 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 3.75% |
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2020 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.125% |
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2021 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.125% |
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2022 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.625% |
Fixed-Rate 3.875% Senior Unsecured Notes Maturing in September 2022 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 3.875% |
Fixed-Rate 5.75% Senior Unsecured Notes Maturing in March 2023 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 5.75% |
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2023 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.625% |
Fixed-Rate 4.875% Senior Unsecured Notes Maturing in March 2024 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.875% |
Fixed-Rate 5.35% Senior Unsecured Notes Maturing in March 2026 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 5.35% |
Fixed-Rate 5.55% Senior Unsecured Notes Maturing in December 2028 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 5.55% |
Fixed-Rate 1% Cash Convertible Notes Maturing in December 2019 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 1.00% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Range of interest rates | 0.00% | ||
Average rate of interest | 4.00% | ||
Principal amount outstanding | $ 7,427 | $ 6,679 | |
Due in 2019 | 1,152 | ||
Due after 2019 | 6,275 | ||
Due after 2023 | $ 2,019 | ||
Average remaining term (in years) | 3 years 9 months 18 days | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | [1] | 0.00% | |
Average rate of interest | [1] | 0.00% | |
Principal amount outstanding | [1] | $ 0 | 0 |
Due in 2019 | [1] | 0 | |
Due after 2019 | [1] | 0 | |
Due after 2023 | [1] | $ 0 | |
Notes Payable to Banks [Member] | USD Notes [Member] | |||
Debt Instrument [Line Items] | |||
Average rate of interest | 4.50% | ||
Principal amount outstanding | $ 6,250 | 5,500 | |
Due in 2019 | 0 | ||
Due after 2019 | 6,250 | ||
Due after 2023 | $ 2,000 | ||
Average remaining term (in years) | 4 years 3 months 18 days | ||
Notes Payable to Banks [Member] | USD Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 3.90% | ||
Notes Payable to Banks [Member] | USD Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 5.80% | ||
Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 1.00% | ||
Average rate of interest | 1.00% | ||
Principal amount outstanding | $ 1,150 | 1,150 | |
Due in 2019 | 1,150 | ||
Due after 2019 | 0 | ||
Due after 2023 | $ 0 | ||
Average remaining term (in years) | 10 months 24 days | ||
Bank Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 0.00% | ||
Average rate of interest | 0.00% | ||
Principal amount outstanding | $ 0 | 0 | |
Due in 2019 | 0 | ||
Due after 2019 | 0 | ||
Due after 2023 | $ 0 | ||
Capital Lease [Member] | |||
Debt Instrument [Line Items] | |||
Average rate of interest | 4.60% | ||
Principal amount outstanding | $ 27 | $ 29 | |
Due in 2019 | 2 | ||
Due after 2019 | 25 | ||
Due after 2023 | $ 19 | ||
Average remaining term (in years) | 13 years 2 months 12 days | ||
Capital Lease [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 4.50% | ||
Capital Lease [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 13.80% | ||
[1] | We do not have any borrowings under the $600 million Revolving Credit Facility as of December 31, 2018 and 2017. |
Debt - Schedule of Long-Term _2
Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) - Dollar Denominated Revolving Credit Facilities [Member] - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Borrowings outstanding | $ 0 | $ 0 |
Revolving credit facility | $ 600,000,000 | $ 600,000,000 |
Debt - Principal Amounts of Lon
Debt - Principal Amounts of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 1,152 | |
2,020 | 601 | |
2,021 | 1,351 | |
2,022 | 1,402 | |
2,023 | 902 | |
Due after 5 years | 2,019 | |
Amount outstanding | $ 7,427 | $ 6,679 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | Sep. 19, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 06, 2018 | Mar. 08, 2018 | Mar. 02, 2018 | Jan. 01, 2016 | Nov. 30, 2014 |
Debt Instrument [Line Items] | ||||||||
Book value of outstanding long-term debt | $ 6,247,000,000 | $ 5,814,000,000 | ||||||
Debt issuance costs | 32,000,000 | |||||||
Debt discount | $ 3,000,000 | |||||||
Remaining tenor of debt | 3 years 9 months 18 days | |||||||
Interest accrued for debt | $ 31,000,000 | 35,000,000 | ||||||
Principal amount of debt | 7,400,000,000 | 6,650,000,000 | ||||||
Portion of principal amount of long-term and short-term debt, secured by collateral | $ 0 | 0 | ||||||
Debt instrument, interest rate | 0.00% | |||||||
Debt instrument trading price, percentage | 98.00% | |||||||
Warrant [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Issue of warrants to purchase shares of common stock | 11,180 | |||||||
Exercise price | $ 133.32 | |||||||
Warrants expiration date | Mar. 2, 2020 | |||||||
Cash proceeds from the sale of the warrants | $ 134,000,000 | |||||||
Carrying value of the warrants | $ 168,000,000 | |||||||
Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock exchange percentage threshold | 50.00% | |||||||
Percentage of consideration received by share holders | 90.00% | |||||||
Secured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining tenor of debt | 3 years 9 months 18 days | |||||||
2019 Cash Convertible Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 | |||||
Debt instrument, interest rate | 1.00% | |||||||
Notes maturity date | Dec. 1, 2019 | |||||||
Fees and expenses capitalized as deferred financing costs | $ 16,000,000 | |||||||
Debt instrument, frequency of periodic payment | Semi-annually each December 1st and June 1st. | |||||||
Debt instrument trading price, percentage | 130.00% | |||||||
Initial cash conversion rate, shares | 9.7236 | |||||||
Initial cash conversion price, debt | $ 1,000 | |||||||
Cash conversion price | $ 102.84 | |||||||
Minimum principal amount on fundamental change repurchase date | $ 200,000 | |||||||
Cash Convertible Senior Notes, Description | If a “fundamental change” (as defined below in this section) occurs at any time, holders will have the right, at their option, to require us to repurchase for cash all of their 2019 Cash Convertible Senior Notes, or any portion of the principal thereof that is equal to $1,000 or a multiple of $1,000 (provided that the portion of any global note or certified note, as applicable, not tendered for repurchase has a principal amount of at least $200,000, on the fundamental change repurchase date. | |||||||
Fair value of Cash Convertible Senior Notes | $ 1,327,000,000 | |||||||
2019 Cash Convertible Senior Notes [Member] | Level III [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of notes | 24,000,000 | 301,000,000 | ||||||
Profit (loss) on embedded cash conversion option | 277,000,000 | (43,000,000) | ||||||
Notes Hedges [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate cost of the Notes Hedges | 208,000,000 | |||||||
Estimated fair value of the Notes Hedges | 24,000,000 | 301,000,000 | ||||||
Variable Interest Rate Indebtedness under Loan Agreements [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of variable interest rate indebtedness | $ 0 | |||||||
Senior Unsecured Notes Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,000,000,000 | |||||||
Fixed rate on notes | 4.875% | |||||||
Senior Unsecured Notes Due 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 500,000,000 | |||||||
Fixed rate on notes | 5.35% | |||||||
Senior Unsecured Notes Due 2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 500,000,000 | |||||||
Fixed rate on notes | 5.55% | |||||||
2019 Bridge Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 1,000,000,000 | |||||||
Debt instrument maturity date description | The Bridge Loan was to mature 364 days following the closing date of September 19, 2018 | |||||||
2019 Bridge Loan [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument applicable margin rate | 1.50% | |||||||
2019 Bridge Loan [Member] | Senior Unsecured Bridge Term Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of credit facility | $ 1,000,000,000 | |||||||
Senior Notes Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 750,000,000 | |||||||
Fixed rate on notes | 3.75% | |||||||
Senior Notes Due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 500,000,000 | |||||||
Fixed rate on notes | 5.75% | |||||||
Dollar Denominated Revolving Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of credit facility | $ 600,000,000 | $ 600,000,000 |
Debt - Summary of Principal Amo
Debt - Summary of Principal Amount, Unamortized Debt Discount and Net Carrying Amount of Liability Component (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2014 |
Debt Instrument [Line Items] | |||
Principal amount | $ 7,400,000,000 | $ 6,650,000,000 | |
2019 Cash Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 |
Unamortized debt discount | 45,000,000 | 91,000,000 | |
Net liability | $ 1,105,000,000 | $ 1,059,000,000 |
Debt - Summary of Effective Int
Debt - Summary of Effective Interest Rate, Contractual Interest Expense and Amortization of Debt Discount (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Effective interest rate | 0.00% | 0.00% | |
Amortization of debt discount | $ 42 | $ 40 | $ 34 |
2019 Cash Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.14% | 5.14% | |
Contractual interest expense | $ 12 | $ 12 | |
Amortization of debt discount | $ 44 | $ 42 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Birthdefect | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitment And Contingencies [Line Items] | |||
Capital lease obligations | $ 0 | $ 0 | |
Long-term operating lease commitments | $ 156,000,000 | 132,000,000 | |
Long-term operating lease commitments expiration | These leases expire at various dates during the next 30 years. | ||
Rent expense | $ 57,000,000 | 63,000,000 | $ 68,000,000 |
Purchase commitments | $ 333,000,000 | ||
Purchase commitments due period | 2,032 | ||
Accrued potential and current legal fees | $ 123,000,000 | 104,000,000 | |
Insurance reimbursements | 65,000,000 | $ 61,000,000 | |
Insurance reimbursement of claims potential maximum exposure | $ 205,000,000 | ||
Number of birth defect individuals | Birthdefect | 45 | ||
Environmental remediation costs | $ 88,000,000 | ||
Motorola | |||
Commitment And Contingencies [Line Items] | |||
Lawsuits allege exposures, descirption | The Motorola suits allege exposures between 1965 and 2006. Each claim seeks an unspecified amount of damages for the alleged injuries | ||
Minimum [Member] | |||
Commitment And Contingencies [Line Items] | |||
Range of possible loss | $ 0 | ||
Maximum [Member] | |||
Commitment And Contingencies [Line Items] | |||
Range of possible loss | $ 289,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Leases Future Minimum Payments Due Rolling Maturity [Abstract] | ||
2,019 | $ 43 | |
2,020 | 35 | |
2,021 | 24 | |
2,022 | 13 | |
2,023 | 11 | |
Thereafter | 30 | |
Total future minimum leases payments | $ 156 | $ 132 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) € / shares in Units, $ / shares in Units, € in Millions, $ in Millions | Jan. 07, 2019$ / shares | Nov. 16, 2018shares | Oct. 05, 2018$ / shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018EUR (€)€ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017EUR (€)€ / sharesshares |
Stockholders' Equity [Line Items] | |||||||
Capital stock, authorized shares | 1,076,257,500 | 1,076,257,500 | 1,076,257,500 | 1,076,257,500 | |||
Common stock, Authorized shares | 430,503,000 | 430,503,000 | 430,503,000 | 430,503,000 | |||
Preferred stock, shares authorized | 645,754,500 | 645,754,500 | 645,754,500 | 645,754,500 | |||
Percentage of shares cancelled | 5.00% | ||||||
Number of shares cancelled | 17,300,143 | ||||||
Common stock, issued and paid | 328,702,719 | 328,702,719 | 328,702,719 | 346,002,862 | 346,002,862 | ||
Common stock, par value | € / shares | € 0.20 | € 0.20 | |||||
Nominal stock capital | $ 67 | € 66 | $ 71 | € 69 | |||
Cash dividend declared date | Sep. 10, 2018 | ||||||
Cash dividend payable terms | NXP announced the initiation of a Quarterly Dividend Program under which the company will pay a regular quarterly cash dividend | ||||||
Interim cash dividend paid per ordinary share | $ / shares | $ 0.25 | ||||||
Interim cash dividend payable date | Oct. 5, 2018 | ||||||
Subsequent Event [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Interim cash dividend paid per ordinary share | $ / shares | $ 0.25 | ||||||
Interim cash dividend payable date | Jan. 7, 2019 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Transactions from Employee Option and Share Plans (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Total shares in treasury at beginning of year | 3,078,470 | 10,609,980 | 3,998,982 |
Total cost | $ 342 | $ 915 | $ 342 |
Shares acquired under repurchase program | 54,376,181 | 2,522,589 | 15,537,868 |
Average price in $ per share | $ 92.07 | $ 113.36 | $ 82.36 |
Amount paid | $ 5,006 | $ 286 | $ 1,280 |
Shares delivered | 4,241,487 | 10,054,099 | 8,926,870 |
Average price in $ per share | $ 107.75 | $ 85.42 | $ 79.25 |
Amount received | $ 39 | $ 233 | $ 115 |
Shares retired | 17,300,143 | 0 | 0 |
Total shares in treasury at end of year | 35,913,021 | 3,078,470 | 10,609,980 |
Total cost | $ 3,238 | $ 342 | $ 915 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss), Net of Tax - Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 13,716 | $ 11,156 | $ 11,803 |
Total other comprehensive income (loss) | (54) | 143 | (147) |
Balance | 10,690 | 13,716 | 11,156 |
Currency Translation Differences [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 269 | 113 | |
Other comprehensive income (loss) before reclassifications | (51) | 156 | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | |
Income tax effects | 0 | 0 | |
Total other comprehensive income (loss) | (51) | 156 | |
Balance | 218 | 269 | 113 |
Change in Fair Value Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 8 | (2) | |
Other comprehensive income (loss) before reclassifications | (10) | 29 | |
Amounts reclassified out of accumulated other comprehensive income (loss) | (4) | (15) | |
Income tax effects | 3 | (4) | |
Total other comprehensive income (loss) | (11) | 10 | |
Balance | (3) | 8 | (2) |
Net Actuarial Gain/(Losses) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (97) | (81) | |
Other comprehensive income (loss) before reclassifications | 9 | (20) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | |
Income tax effects | (4) | 4 | |
Total other comprehensive income (loss) | 5 | (16) | |
Balance | (92) | (97) | (81) |
Unrealized Gains/Losses Available-for Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (3) | 4 | |
Other comprehensive income (loss) before reclassifications | 0 | (3) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 3 | (6) | |
Income tax effects | 0 | 2 | |
Total other comprehensive income (loss) | 3 | (7) | |
Balance | 0 | (3) | 4 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 177 | 34 | 181 |
Other comprehensive income (loss) before reclassifications | (52) | 162 | |
Amounts reclassified out of accumulated other comprehensive income (loss) | (1) | (21) | |
Income tax effects | (1) | 2 | |
Total other comprehensive income (loss) | (54) | 143 | |
Balance | $ 123 | $ 177 | $ 34 |
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 (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Revenue and other income | $ 133 | $ 130 | $ 59 |
Purchase of goods and services | $ 106 | $ 144 | $ 116 |
Related-party Transactions - _2
Related-party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Receivables | $ 25 | $ 54 |
Payables | $ 49 | $ 77 |
Related-party Transactions - Ad
Related-party Transactions - Additional Information (Detail) - Nexperia [Member] $ in Millions | Dec. 31, 2018USD ($) |
Schedule of Other Related Party Transactions [Line Items] | |
Lease commitment and related services amount | $ 28 |
Commitment to affiliated investment funds | $ 50 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Summary of Estimated Fair Value and Carrying Amount of Financial Instruments Measured on a Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Short-term debt | $ (1,107) | $ (751) |
Long-term debt | (6,247) | (5,814) |
Carrying Amount [Member] | Level III [Member] | ||
Assets: | ||
Notes hedges | 24 | 301 |
Liabilities: | ||
Notes Embedded Conversion Derivative | (24) | (301) |
Carrying Amount [Member] | Level II [Member] | ||
Assets: | ||
Other financial assets | 32 | 29 |
Derivative instruments-assets | 6 | 10 |
Liabilities: | ||
Short-term debt | (2) | (2) |
Other long-term debt | (25) | (27) |
Derivative instruments-liabilities | (2) | 0 |
Carrying Amount [Member] | Level II [Member] | Notes Payable to Banks [Member] | USD Notes [Member] | ||
Liabilities: | ||
Short-term debt | 0 | (749) |
Long-term debt | (6,222) | (4,728) |
Carrying Amount [Member] | Level II [Member] | Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | ||
Liabilities: | ||
Short-term debt | (1,105) | (1,059) |
Estimated Fair Value [Member] | Level III [Member] | ||
Assets: | ||
Notes hedges | 24 | 301 |
Liabilities: | ||
Notes Embedded Conversion Derivative | (24) | (301) |
Estimated Fair Value [Member] | Level II [Member] | ||
Assets: | ||
Other financial assets | 32 | 29 |
Derivative instruments-assets | 6 | 10 |
Liabilities: | ||
Short-term debt | (2) | (2) |
Other long-term debt | (25) | (27) |
Derivative instruments-liabilities | (2) | 0 |
Estimated Fair Value [Member] | Level II [Member] | Notes Payable to Banks [Member] | USD Notes [Member] | ||
Liabilities: | ||
Short-term debt | 0 | (755) |
Long-term debt | (6,191) | (4,879) |
Estimated Fair Value [Member] | Level II [Member] | Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | ||
Liabilities: | ||
Short-term debt | $ (1,327) | $ (1,418) |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair value assumptions unobservable inputs | 34.80% | 29.00% |
Segments and Geographical Inf_3
Segments and Geographical Information - Additional Information (Detail) | Jan. 01, 2019Segment | Feb. 06, 2017Segment | Feb. 05, 2017Segment | Dec. 31, 2018Area |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 1 | 2 | ||
Number of application areas | Area | 8 | |||
Subsequent Event [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 1 |
Segments and Geographical Inf_4
Segments and Geographical Information - Segment Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | $ 9,407 | $ 9,256 | [2] | $ 9,498 | [2] |
Operating income (loss) | 2,710 | 2,102 | (150) | |||
HPMS [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 9,022 | 8,745 | 8,086 | |||
Operating income (loss) | 807 | 656 | (302) | |||
SP [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 118 | 1,220 | |||
Operating income (loss) | 0 | 31 | 268 | |||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [3] | 385 | 393 | 192 | ||
Operating income (loss) | [3] | $ 1,903 | $ 1,415 | $ (116) | ||
[1] | Revenue attributed to geographic areas is based on the customer’s shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). | |||||
[2] | As noted above, prior period amounts have not been adjusted for the impact of adopting ASC 606 under the modified retrospective method. | |||||
[3] | Corporate and Other is not a reporting segment under ASC 280 “Segment Reporting”. Corporate and Other includes revenue related to manufacturing operations, unallocated expenses not related to any specific business segment and corporate restructuring charges. The gain on the sale of the divestment of SP business is included in the operating income of Corporate and Other. |
Segments and Geographical Inf_5
Segments and Geographical Information - Goodwill Assigned to Segments (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance, Cost | $ 9,020 | |
Purchase price allocation to goodwill | 11 | |
Ending balance, Cost | 8,971 | |
Accumulated impairment at January 1, 2018 | (154) | |
Accumulated impairment at December 31, 2018 | (114) | |
Cost [Member] | ||
Goodwill [Line Items] | ||
Translation differences and other changes | (60) | |
Accumulated Impairment [Member] | ||
Goodwill [Line Items] | ||
Translation differences and other changes | 40 | |
HPMS [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, Cost | 8,750 | |
Purchase price allocation to goodwill | 11 | |
Ending balance, Cost | 8,701 | |
Accumulated impairment at January 1, 2018 | (154) | |
Accumulated impairment at December 31, 2018 | (114) | |
HPMS [Member] | Cost [Member] | ||
Goodwill [Line Items] | ||
Translation differences and other changes | (60) | |
HPMS [Member] | Accumulated Impairment [Member] | ||
Goodwill [Line Items] | ||
Translation differences and other changes | 40 | |
Corporate and Other [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, Cost | 270 | [1] |
Purchase price allocation to goodwill | 0 | [1] |
Ending balance, Cost | 270 | [1] |
Accumulated impairment at January 1, 2018 | 0 | [1] |
Accumulated impairment at December 31, 2018 | 0 | [1] |
Corporate and Other [Member] | Cost [Member] | ||
Goodwill [Line Items] | ||
Translation differences and other changes | 0 | [1] |
Corporate and Other [Member] | Accumulated Impairment [Member] | ||
Goodwill [Line Items] | ||
Translation differences and other changes | $ 0 | [1] |
[1] | Corporate and Other is not a reporting segment under ASC 280 “Segment Reporting”. |
Segments and Geographical Inf_6
Segments and Geographical Information - Geographical Segment Report (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | $ 9,407 | $ 9,256 | [2] | $ 9,498 | [2] |
Property, plant and equipment, net | 2,436 | 2,295 | 2,352 | |||
China [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 3,430 | 3,640 | 3,882 | ||
Property, plant and equipment, net | 287 | 281 | 251 | |||
Netherlands [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 349 | 304 | 285 | ||
Property, plant and equipment, net | 214 | 198 | 183 | |||
United States [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 919 | 922 | 906 | ||
Property, plant and equipment, net | 782 | 770 | 922 | |||
Singapore [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 1,220 | 1,082 | 984 | ||
Property, plant and equipment, net | 298 | 211 | 166 | |||
Germany [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 531 | 570 | 623 | ||
Property, plant and equipment, net | 55 | 57 | 52 | |||
Japan [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 735 | 750 | 550 | ||
Property, plant and equipment, net | 0 | 0 | 1 | |||
South Korea [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 357 | 356 | 369 | ||
Property, plant and equipment, net | 0 | 0 | 0 | |||
Malaysia [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 112 | 103 | 231 | ||
Property, plant and equipment, net | 373 | 369 | 378 | |||
Other Countries [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 1,754 | 1,529 | 1,668 | ||
Property, plant and equipment, net | $ 427 | $ 409 | $ 399 | |||
[1] | Revenue attributed to geographic areas is based on the customer’s shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). | |||||
[2] | As noted above, prior period amounts have not been adjusted for the impact of adopting ASC 606 under the modified retrospective method. |