Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-03761 | |
Entity Registrant Name | TEXAS INSTRUMENTS INCORPORATED | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-0289970 | |
Entity Address, Address Line One | 12500 TI Boulevard | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75243 | |
City Area Code | 214 | |
Local Phone Number | 479-3773 | |
Title of 12(b) Security | Common Stock, par value $1.00 | |
Trading Symbol | TXN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 923,523,523 | |
Entity Central Index Key | 0000097476 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 4,289 | $ 3,329 |
Cost of revenue (COR) | 1,492 | 1,241 |
Gross profit | 2,797 | 2,088 |
Research and development (R&D) | 386 | 377 |
Selling, general and administrative (SG&A) | 425 | 417 |
Acquisition charges | 47 | 50 |
Operating profit | 1,939 | 1,244 |
Other income (expense), net (OI&E) | 46 | 25 |
Interest and debt expense | 46 | 45 |
Income before income taxes | 1,939 | 1,224 |
Provision for income taxes | 186 | 50 |
Net income | $ 1,753 | $ 1,174 |
Earnings per common share (EPS): | ||
Basic (in dollars per share) | $ 1.89 | $ 1.25 |
Diluted (in dollars per share) | $ 1.87 | $ 1.24 |
Average shares outstanding (millions): | ||
Basic (in shares) | 922 | 931 |
Diluted (in shares) | 935 | 943 |
Diluted EPS: | ||
Net income | $ 1,753 | $ 1,174 |
Income allocated to RSUs | (8) | (6) |
Income allocated to common stock for diluted EPS | $ 1,745 | $ 1,168 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,753 | $ 1,174 |
Net actuarial losses of defined benefit plans: | ||
Adjustments, net of tax effect of ($2) and ($3) | 5 | 9 |
Recognized within net income, net of tax effect of ($3) and ($2) | 8 | 8 |
Available-for-sale investments: | ||
Unrealized gains, net of tax effect of $0 and $0 | 0 | 2 |
Other comprehensive income (loss), net of taxes | 13 | 19 |
Total comprehensive income | $ 1,766 | $ 1,193 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net actuarial losses of defined benefit plans adjustment, tax effect | $ (2) | $ (3) |
Net actuarial losses of defined benefit plans recognized within net income, tax effect | (3) | (2) |
Available-for-sale investments unrealized losses, tax effect | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,442 | $ 3,107 |
Short-term investments | 4,244 | 3,461 |
Accounts receivable, net of allowances of ($9) and ($11) | 1,584 | 1,414 |
Raw materials | 183 | 180 |
Work in process | 980 | 964 |
Finished goods | 727 | 811 |
Inventories | 1,890 | 1,955 |
Prepaid expenses and other current assets | 245 | 302 |
Total current assets | 10,405 | 10,239 |
Property, plant and equipment at cost | 5,967 | 5,781 |
Accumulated depreciation | (2,536) | (2,512) |
Property, plant and equipment | 3,431 | 3,269 |
Goodwill | 4,362 | 4,362 |
Acquisition-related intangibles | 105 | 152 |
Deferred tax assets | 331 | 343 |
Capitalized software licenses | 113 | 122 |
Overfunded retirement plans | 235 | 246 |
Other long-term assets | 657 | 618 |
Total assets | 19,639 | 19,351 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 550 |
Accounts payable | 567 | 415 |
Accrued compensation | 388 | 767 |
Income taxes payable | 278 | 134 |
Accrued expenses and other liabilities | 467 | 524 |
Total current liabilities | 1,700 | 2,390 |
Long-term debt | 6,250 | 6,248 |
Underfunded retirement plans | 130 | 131 |
Deferred tax liabilities | 88 | 90 |
Other long-term liabilities | 1,305 | 1,305 |
Total liabilities | 9,473 | 10,164 |
Stockholders’ equity: | ||
Preferred stock, $25 par value. Authorized – 10,000,000 shares Participating cumulative preferred – None issued | 0 | 0 |
Common stock, $1 par value. Authorized - 2,400,000,000 shares, Shares issued - 1,740,815,939 | 1,741 | 1,741 |
Paid-in capital | 2,391 | 2,333 |
Retained earnings | 42,860 | 42,051 |
Treasury common stock at cost: Shares: March 31, 2021 – 817,573,099; December 31, 2020 – 821,461,787 | (36,479) | (36,578) |
Accumulated other comprehensive income (loss), net of taxes (AOCI) | (347) | (360) |
Total stockholders’ equity | 10,166 | 9,187 |
Total liabilities and stockholders’ equity | $ 19,639 | $ 19,351 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Allowance for doubtful accounts receivable, current | $ 9 | $ 11 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 2,400,000,000 | 2,400,000,000 |
Common stock, shares issued (in shares) | 1,740,815,939 | 1,740,815,939 |
Treasury stock (in shares) | 817,573,099 | 821,461,787 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 1,753 | $ 1,174 |
Adjustments to net income: | ||
Depreciation | 179 | 186 |
Amortization of acquisition-related intangibles | 47 | 50 |
Amortization of capitalized software | 15 | 14 |
Stock compensation | 61 | 63 |
Gains on sales of assets | (1) | 0 |
Deferred taxes | 8 | (34) |
Increase (decrease) from changes in: | ||
Accounts receivable | (170) | (242) |
Inventories | 65 | (2) |
Prepaid expenses and other current assets | 73 | (88) |
Accounts payable and accrued expenses | 69 | 0 |
Accrued compensation | (379) | (353) |
Income taxes payable | 131 | 147 |
Changes in funded status of retirement plans | 28 | 27 |
Other | (29) | (91) |
Cash flows from operating activities | 1,850 | 851 |
Cash flows from investing activities | ||
Capital expenditures | (308) | (161) |
Proceeds from asset sales | 1 | 0 |
Purchases of short-term investments | (2,782) | (646) |
Proceeds from short-term investments | 2,000 | 1,638 |
Other | (20) | (5) |
Cash flows from investing activities | (1,109) | 826 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt | 0 | 749 |
Repayment of debt | (550) | 0 |
Dividends paid | (940) | (841) |
Stock repurchases | (100) | (1,641) |
Proceeds from common stock transactions | 196 | 146 |
Other | (12) | (9) |
Cash flows from financing activities | (1,406) | (1,596) |
Net change in cash and cash equivalents | (665) | 81 |
Cash and cash equivalents at beginning of period | 3,107 | 2,437 |
Cash and cash equivalents at end of period | $ 2,442 | $ 2,518 |
Description of business, includ
Description of business, including segment and geographic area information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Description of business, including segment and geographic area information | Description of business, including segment and geographic area information We design, make and sell semiconductors to electronics designers and manufacturers all over the world. We have two reportable segments, Analog and Embedded Processing, each of which represents groups of similar products that are combined on the basis of similar design and development requirements, product characteristics, manufacturing processes and distribution channels. • Analog semiconductors change real-world signals, such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors. Analog semiconductors are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy, whether the equipment is plugged into a wall or using a battery. Our Analog segment consists of two major product lines: Power and Signal Chain. • Embedded Processing products are the digital “brains” of many types of electronic equipment. They are designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application. We report the results of our remaining business activities in Other. Other includes operating segments that do not meet the quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments. Other includes DLP ® products, calculators and custom ASIC products. Our centralized manufacturing and support organizations, such as facilities, procurement and logistics, provide support to our operating segments, including those in Other. Costs incurred by these organizations, including depreciation, are charged to the segments on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the segments’ results and, therefore, is not provided. Segment information For Three Months Ended March 31, 2021 2020 Revenue: Analog $ 3,280 $ 2,460 Embedded Processing 767 653 Other 242 216 Total revenue $ 4,289 $ 3,329 Operating profit: Analog $ 1,646 $ 1,025 Embedded Processing 287 182 Other (a) 6 37 Total operating profit $ 1,939 $ 1,244 (a) Includes acquisition charges and restructuring charges/other Geographic area information The following geographic area information includes revenue, based on product shipment destination. The geographic revenue information does not necessarily reflect end demand by geography because our products tend to be shipped to the locations where our customers manufacture their products. For Three Months Ended March 31, 2021 2020 Revenue: United States $ 393 $ 390 Asia (a) 2,858 2,027 Europe, Middle East and Africa 682 619 Japan 239 190 Rest of world 117 103 Total revenue $ 4,289 $ 3,329 (a) Revenue from products shipped into China was $2.3 billion and $1.7 billion in the first quarters of 2021 and 2020, respectively, which includes shipments to customers that manufacture in China and then export end products to their customers around the world, as well as distributors that transship inventory through China to service other countries. |
Basis of presentation and signi
Basis of presentation and significant accounting policies and practices | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and significant accounting policies and practices | Basis of presentation and significant accounting policies and practices Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and on the same basis as the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2020. The Consolidated Statements of Income, Comprehensive Income and Cash Flows for the periods ended March 31, 2021 and 2020, and the Consolidated Balance Sheet as of March 31, 2021, are not audited but reflect all adjustments that are of a normal recurring nature and are necessary for a fair statement of the results of the periods shown. Certain information and note disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the consolidated interim financial statements do not include all of the information and notes required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2020. The results for the three-month periods are not necessarily indicative of a full year’s results. Significant accounting policies and practices Earnings per share (EPS) We use the two-class method for calculating EPS because the restricted stock units (RSUs) we grant are participating securities containing non-forfeitable rights to receive dividend equivalents. Under the two-class method, a portion of net income is allocated to RSUs and excluded from the calculation of income allocated to common stock. Computation and reconciliation of earnings per common share are as follows (shares in millions): For Three Months Ended March 31, 2021 2020 Net Income Shares EPS Net Income Shares EPS Basic EPS: Net income $ 1,753 $ 1,174 Income allocated to RSUs (8) (6) Income allocated to common stock $ 1,745 922 $ 1.89 $ 1,168 931 $ 1.25 Dilutive effect of stock compensation plans 13 12 Diluted EPS: Net income $ 1,753 $ 1,174 Income allocated to RSUs (8) (6) Income allocated to common stock $ 1,745 935 $ 1.87 $ 1,168 943 $ 1.24 Potentially dilutive securities representing 3 million and 9 million shares of common stock that were outstanding during the first quarters of 2021 and 2020, respectively, were excluded from the computation of diluted earnings per common share during these periods because their effect would have been anti-dilutive. Derivatives and hedging We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. We are exposed to variability in compensation charges related to certain deferred compensation obligations to employees. We use total return swaps to economically hedge this exposure and offset the related compensation expense, recognizing changes in the value of the swaps and the related deferred compensation liabilities in SG&A. In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions have not been material. We do not use derivatives for speculative or trading purposes. Fair values of financial instruments The fair values of our derivative financial instruments were not material as of March 31, 2021. Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our deferred compensation liabilities, are carried at fair value. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. As of March 31, 2021, the carrying value of long-term debt, including the current portion, was $6.25 billion, and the estimated fair value was $6.74 billion. The estimated fair value is measured using broker-dealer quotes, which are Level 2 inputs. See Note 4 for a description of fair value and the definition of Level 2 inputs. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxesOur estimated annual effective tax rate is about 14%, which does not include discrete tax items. This differs from the 21% U.S. statutory corporate tax rate due to the effect of U.S. tax benefits. Provision for income taxes is based on the following: For Three Months Ended March 31, 2021 2020 Taxes calculated using the estimated annual effective tax rate $ 275 $ 166 Discrete tax items (89) (116) Provision for income taxes $ 186 $ 50 Effective tax rate 10 % 4 % |
Valuation of debt and equity in
Valuation of debt and equity investments and certain liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Valuation of debt and equity investments and certain liabilities | Valuation of debt and equity investments and certain liabilities Investments measured at fair value Available-for-sale debt investments, money market funds and mutual funds are stated at fair value, which is generally based on market prices or broker quotes. See Fair-value considerations below. Unrealized gains and losses from available-for-sale debt securities are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets and any credit losses on available-for-sale debt securities are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income. Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. Other investments Our other investments include equity-method investments and non-marketable equity investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other non-marketable equity securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results. Non-marketable equity securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on non-marketable equity investments are recognized in OI&E. Details of our investments are as follows: March 31, 2021 December 31, 2020 Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash and Cash Equivalents Short-Term Investments Long-Term Investments Measured at fair value: Money market funds $ 1,236 $ — $ — $ 886 $ — $ — Corporate obligations 253 1,069 — 256 407 — U.S. government agency and Treasury securities 200 3,175 — 1,340 3,054 — Mutual funds — — 14 — — 18 Total 1,689 4,244 14 2,482 3,461 18 Other measurement basis: Equity-method investments — — 52 — — 27 Non-marketable equity investments — — 4 — — 4 Cash on hand 753 — — 625 — — Total $ 2,442 $ 4,244 $ 70 $ 3,107 $ 3,461 $ 49 As of March 31, 2021, and December 31, 2020, unrealized gains and losses associated with our available-for-sale investments were not material. We did not recognize any credit losses related to available-for-sale investments for the first three months of 2021 and 2020. Proceeds from sales, redemptions and maturities of short-term available-for-sale investments were $2.00 billion and $1.39 billion for the first quarters of 2021 and 2020, respectively. Gross realized gains and losses from these sales were not material. The following table presents the aggregate maturities of our available-for-sale debt investments as of March 31, 2021: Fair Value One year or less $ 4,647 One to two years 50 During the first quarter of 2020, we entered into total return swaps to economically hedge the variability of certain deferred compensation obligations to employees. As a result, we received proceeds of $253 million from the sale of investments in mutual funds that were previously being utilized to offset this exposure. Fair-value considerations We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy described below indicates the extent and level of judgment used to estimate fair-value measurements. • Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. • Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. • Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of March 31, 2021, and December 31, 2020, we had no Level 3 assets or liabilities. The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value. March 31, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Money market funds $ 1,236 $ — $ 1,236 $ 886 $ — $ 886 Corporate obligations — 1,322 1,322 — 663 663 U.S. government agency and Treasury securities 3,325 50 3,375 4,394 — 4,394 Mutual funds 14 — 14 18 — 18 Total assets $ 4,575 $ 1,372 $ 5,947 $ 5,298 $ 663 $ 5,961 Liabilities: Deferred compensation $ 337 $ — $ 337 $ 350 $ — $ 350 Total liabilities $ 337 $ — $ 337 $ 350 $ — $ 350 |
Postretirement benefit plans
Postretirement benefit plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Postretirement benefit plans | Postretirement benefit plans Expense related to defined benefit and retiree health care benefit plans is as follows: U.S. Defined Benefit U.S. Retiree Health Care Non-U.S. Defined Benefit For Three Months Ended March 31, 2021 2020 2021 2020 2021 2020 Service cost $ 5 $ 4 $ 1 $ 1 $ 9 $ 8 Interest cost 8 9 3 3 9 9 Expected return on plan assets (8) (9) (3) (3) (20) (18) Recognized net actuarial loss 4 2 — — 2 3 Net periodic benefit costs 9 6 1 1 — 2 Settlement losses 4 4 — — 1 1 Total, including other postretirement losses $ 13 $ 10 $ 1 $ 1 $ 1 $ 3 |
Debt and lines of credit
Debt and lines of credit | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and lines of credit | Debt and lines of credit Short-term borrowings We maintain a line of credit to support commercial paper borrowings, if any, and to provide additional liquidity through bank loans. As of March 31, 2021, we had a variable-rate revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $2 billion until March 2024. The interest rate on borrowings under this credit facility, if drawn, is indexed to the applicable London Interbank Offered Rate (LIBOR). As of March 31, 2021, our credit facility was undrawn, and we had no commercial paper outstanding. Long-term debt In February 2021, we retired $550 million of maturing debt. Long-term debt outstanding is as follows: March 31, December 31, 2021 2020 Notes due 2021 at 2.75% $ — $ 550 Notes due 2022 at 1.85% 500 500 Notes due 2023 at 2.25% 500 500 Notes due 2024 at 2.625% 300 300 Notes due 2025 at 1.375% 750 750 Notes due 2027 at 2.90% 500 500 Notes due 2029 at 2.25% 750 750 Notes due 2030 at 1.75% 750 750 Notes due 2039 at 3.875% 750 750 Notes due 2048 at 4.15% 1,500 1,500 Total debt 6,300 6,850 Net unamortized discounts, premiums and issuance costs (50) (52) Total debt, including net unamortized discounts, premiums and issuance costs 6,250 6,798 Current portion of long-term debt — (550) Long-term debt $ 6,250 $ 6,248 Interest and debt expense was $46 million and $45 million for the first quarters of 2021 and 2020, respectively. This was net of the amortized discounts, premiums and issuance costs. Capitalized interest was not material. |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ equity | Stockholders’ equity Changes in equity are as follows: Common Stock Paid-in Capital Retained Earnings Treasury Common Stock AOCI Balance, December 31, 2020 $ 1,741 $ 2,333 $ 42,051 $ (36,578) $ (360) 2021 Net income — — 1,753 — — Dividends declared and paid ($1.02 per share) — — (940) — — Common stock issued for stock-based awards — (3) — 199 — Stock repurchases — — — (100) — Stock compensation — 61 — — — Other comprehensive income (loss), net of taxes — — — — 13 Dividend equivalents on RSUs — — (4) — — Balance, March 31, 2021 $ 1,741 $ 2,391 $ 42,860 $ (36,479) $ (347) Common Stock Paid-in Capital Retained Earnings Treasury Common Stock AOCI Balance, December 31, 2019 $ 1,741 $ 2,110 $ 39,898 $ (34,495) $ (347) 2020 Net income — — 1,174 — — Dividends declared and paid ($0.90 per share) — — (841) — — Common stock issued for stock-based awards — (77) — 223 — Stock repurchases — — — (1,730) — Stock compensation — 63 — — — Other comprehensive income (loss), net of taxes — — — — 19 Dividend equivalents on RSUs — — (4) — — Balance, March 31, 2020 $ 1,741 $ 2,096 $ 40,227 $ (36,002) $ (328) |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Indemnification guarantees We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. Warranty costs/product liabilities We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our financial condition, results of operations or liquidity. Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. Product claim consideration may exceed the price of our products. General We are subject to various legal and administrative proceedings. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. |
Supplemental financial informat
Supplemental financial information | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Financial Information [Abstract] | |
Supplemental financial information | Supplemental financial information Details on amounts reclassified out of accumulated other comprehensive income (loss), net of taxes, to net income Our Consolidated Statements of Comprehensive Income include items that have been recognized within net income during the first quarters of 2021 and 2020. The table below details where these transactions are recorded in our Consolidated Statements of Income. For Three Months Ended Impact to Related Statement of Income Lines March 31, 2021 2020 Net actuarial losses of defined benefit plans: Recognized net actuarial loss and settlement losses (a) $ 11 $ 10 Decrease to OI&E Tax effect (3) (2) Decrease to provision for income taxes Recognized within net income, net of taxes $ 8 $ 8 Decrease to net income (a) Detailed in Note 5. |
Basis of presentation and sig_2
Basis of presentation and significant accounting policies and practices (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and on the same basis as the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2020. The Consolidated Statements of Income, Comprehensive Income and Cash Flows for the periods ended March 31, 2021 and 2020, and the Consolidated Balance Sheet as of March 31, 2021, are not audited but reflect all adjustments that are of a normal recurring nature and are necessary for a fair statement of the results of the periods shown. Certain information and note disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the consolidated interim financial statements do not include all of the information and notes required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2020. The results for the three-month periods are not necessarily indicative of a full year’s results. |
Earnings per share (EPS) | Earnings per share (EPS) We use the two-class method for calculating EPS because the restricted stock units (RSUs) we grant are participating securities containing non-forfeitable rights to receive dividend equivalents. Under the two-class method, a portion of net income is allocated to RSUs and excluded from the calculation of income allocated to common stock. |
Derivatives and hedging | Derivatives and hedging We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. We are exposed to variability in compensation charges related to certain deferred compensation obligations to employees. We use total return swaps to economically hedge this exposure and offset the related compensation expense, recognizing changes in the value of the swaps and the related deferred compensation liabilities in SG&A. In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions have not been material. We do not use derivatives for speculative or trading purposes. |
Fair values of financial instruments | Fair values of financial instruments The fair values of our derivative financial instruments were not material as of March 31, 2021. Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our deferred compensation liabilities, are carried at fair value. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. As of March 31, 2021, the carrying value of long-term debt, including the current portion, was $6.25 billion, and the estimated fair value was $6.74 billion. The estimated fair value is measured using broker-dealer quotes, which are Level 2 inputs. See Note 4 for a description of fair value and the definition of Level 2 inputs. |
Investments measured at fair value | Investments measured at fair value Available-for-sale debt investments, money market funds and mutual funds are stated at fair value, which is generally based on market prices or broker quotes. See Fair-value considerations below. Unrealized gains and losses from available-for-sale debt securities are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets and any credit losses on available-for-sale debt securities are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income. Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. Other investments Our other investments include equity-method investments and non-marketable equity investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other non-marketable equity securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results. Non-marketable equity securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on non-marketable equity investments are recognized in OI&E. |
Fair value considerations | Fair-value considerations We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy described below indicates the extent and level of judgment used to estimate fair-value measurements. • Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. • Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. • Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of March 31, 2021, and December 31, 2020, we had no Level 3 assets or liabilities. |
Indemnification guarantees and warranty costs/product liabilities | Indemnification guarantees We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. Warranty costs/product liabilities We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our financial condition, results of operations or liquidity. Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. Product claim consideration may exceed the price of our products. |
Description of business, incl_2
Description of business, including segment and geographic area information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | For Three Months Ended March 31, 2021 2020 Revenue: Analog $ 3,280 $ 2,460 Embedded Processing 767 653 Other 242 216 Total revenue $ 4,289 $ 3,329 Operating profit: Analog $ 1,646 $ 1,025 Embedded Processing 287 182 Other (a) 6 37 Total operating profit $ 1,939 $ 1,244 (a) Includes acquisition charges and restructuring charges/other |
Schedule of Geographic Area Information | Geographic area information The following geographic area information includes revenue, based on product shipment destination. The geographic revenue information does not necessarily reflect end demand by geography because our products tend to be shipped to the locations where our customers manufacture their products. For Three Months Ended March 31, 2021 2020 Revenue: United States $ 393 $ 390 Asia (a) 2,858 2,027 Europe, Middle East and Africa 682 619 Japan 239 190 Rest of world 117 103 Total revenue $ 4,289 $ 3,329 (a) Revenue from products shipped into China was $2.3 billion and $1.7 billion in the first quarters of 2021 and 2020, respectively, which includes shipments to customers that manufacture in China and then export end products to their customers around the world, as well as distributors that transship inventory through China to service other countries. |
Basis of presentation and sig_3
Basis of presentation and significant accounting policies and practices (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share | Computation and reconciliation of earnings per common share are as follows (shares in millions): For Three Months Ended March 31, 2021 2020 Net Income Shares EPS Net Income Shares EPS Basic EPS: Net income $ 1,753 $ 1,174 Income allocated to RSUs (8) (6) Income allocated to common stock $ 1,745 922 $ 1.89 $ 1,168 931 $ 1.25 Dilutive effect of stock compensation plans 13 12 Diluted EPS: Net income $ 1,753 $ 1,174 Income allocated to RSUs (8) (6) Income allocated to common stock $ 1,745 935 $ 1.87 $ 1,168 943 $ 1.24 |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | Provision for income taxes is based on the following: For Three Months Ended March 31, 2021 2020 Taxes calculated using the estimated annual effective tax rate $ 275 $ 166 Discrete tax items (89) (116) Provision for income taxes $ 186 $ 50 Effective tax rate 10 % 4 % |
Valuation of debt and equity _2
Valuation of debt and equity investments and certain liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Investments | Details of our investments are as follows: March 31, 2021 December 31, 2020 Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash and Cash Equivalents Short-Term Investments Long-Term Investments Measured at fair value: Money market funds $ 1,236 $ — $ — $ 886 $ — $ — Corporate obligations 253 1,069 — 256 407 — U.S. government agency and Treasury securities 200 3,175 — 1,340 3,054 — Mutual funds — — 14 — — 18 Total 1,689 4,244 14 2,482 3,461 18 Other measurement basis: Equity-method investments — — 52 — — 27 Non-marketable equity investments — — 4 — — 4 Cash on hand 753 — — 625 — — Total $ 2,442 $ 4,244 $ 70 $ 3,107 $ 3,461 $ 49 |
Assets and Liabilities Accounted for at Fair Value | The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value. March 31, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Money market funds $ 1,236 $ — $ 1,236 $ 886 $ — $ 886 Corporate obligations — 1,322 1,322 — 663 663 U.S. government agency and Treasury securities 3,325 50 3,375 4,394 — 4,394 Mutual funds 14 — 14 18 — 18 Total assets $ 4,575 $ 1,372 $ 5,947 $ 5,298 $ 663 $ 5,961 Liabilities: Deferred compensation $ 337 $ — $ 337 $ 350 $ — $ 350 Total liabilities $ 337 $ — $ 337 $ 350 $ — $ 350 |
Aggregate Maturities of Available-for-sale Debt Investments | The following table presents the aggregate maturities of our available-for-sale debt investments as of March 31, 2021: Fair Value One year or less $ 4,647 One to two years 50 |
Postretirement benefit plans (T
Postretirement benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Expense Related to Defined Benefit and Retiree Health Care Benefit Plans | Expense related to defined benefit and retiree health care benefit plans is as follows: U.S. Defined Benefit U.S. Retiree Health Care Non-U.S. Defined Benefit For Three Months Ended March 31, 2021 2020 2021 2020 2021 2020 Service cost $ 5 $ 4 $ 1 $ 1 $ 9 $ 8 Interest cost 8 9 3 3 9 9 Expected return on plan assets (8) (9) (3) (3) (20) (18) Recognized net actuarial loss 4 2 — — 2 3 Net periodic benefit costs 9 6 1 1 — 2 Settlement losses 4 4 — — 1 1 Total, including other postretirement losses $ 13 $ 10 $ 1 $ 1 $ 1 $ 3 |
Debt and lines of credit (Table
Debt and lines of credit (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt outstanding is as follows: March 31, December 31, 2021 2020 Notes due 2021 at 2.75% $ — $ 550 Notes due 2022 at 1.85% 500 500 Notes due 2023 at 2.25% 500 500 Notes due 2024 at 2.625% 300 300 Notes due 2025 at 1.375% 750 750 Notes due 2027 at 2.90% 500 500 Notes due 2029 at 2.25% 750 750 Notes due 2030 at 1.75% 750 750 Notes due 2039 at 3.875% 750 750 Notes due 2048 at 4.15% 1,500 1,500 Total debt 6,300 6,850 Net unamortized discounts, premiums and issuance costs (50) (52) Total debt, including net unamortized discounts, premiums and issuance costs 6,250 6,798 Current portion of long-term debt — (550) Long-term debt $ 6,250 $ 6,248 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Equity | Changes in equity are as follows: Common Stock Paid-in Capital Retained Earnings Treasury Common Stock AOCI Balance, December 31, 2020 $ 1,741 $ 2,333 $ 42,051 $ (36,578) $ (360) 2021 Net income — — 1,753 — — Dividends declared and paid ($1.02 per share) — — (940) — — Common stock issued for stock-based awards — (3) — 199 — Stock repurchases — — — (100) — Stock compensation — 61 — — — Other comprehensive income (loss), net of taxes — — — — 13 Dividend equivalents on RSUs — — (4) — — Balance, March 31, 2021 $ 1,741 $ 2,391 $ 42,860 $ (36,479) $ (347) Common Stock Paid-in Capital Retained Earnings Treasury Common Stock AOCI Balance, December 31, 2019 $ 1,741 $ 2,110 $ 39,898 $ (34,495) $ (347) 2020 Net income — — 1,174 — — Dividends declared and paid ($0.90 per share) — — (841) — — Common stock issued for stock-based awards — (77) — 223 — Stock repurchases — — — (1,730) — Stock compensation — 63 — — — Other comprehensive income (loss), net of taxes — — — — 19 Dividend equivalents on RSUs — — (4) — — Balance, March 31, 2020 $ 1,741 $ 2,096 $ 40,227 $ (36,002) $ (328) |
Supplemental financial inform_2
Supplemental financial information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Financial Information [Abstract] | |
Amounts Reclassified Out of AOCI to Net Income, Net of Taxes | The table below details where these transactions are recorded in our Consolidated Statements of Income. For Three Months Ended Impact to Related Statement of Income Lines March 31, 2021 2020 Net actuarial losses of defined benefit plans: Recognized net actuarial loss and settlement losses (a) $ 11 $ 10 Decrease to OI&E Tax effect (3) (2) Decrease to provision for income taxes Recognized within net income, net of taxes $ 8 $ 8 Decrease to net income (a) Detailed in Note 5. |
Description of business, incl_3
Description of business, including segment and geographic area information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021reportable_segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Description of business, incl_4
Description of business, including segment and geographic area information - Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 4,289 | $ 3,329 |
Total operating profit | 1,939 | 1,244 |
Analog | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,280 | 2,460 |
Total operating profit | 1,646 | 1,025 |
Embedded Processing | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 767 | 653 |
Total operating profit | 287 | 182 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 242 | 216 |
Total operating profit | $ 6 | $ 37 |
Description of business, incl_5
Description of business, including segment and geographic area information - Geographic Area Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 4,289 | $ 3,329 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 393 | 390 | |
Asia | |||
Segment Reporting Information [Line Items] | |||
Total revenue | [1] | 2,858 | 2,027 |
Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 682 | 619 | |
Japan | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 239 | 190 | |
Rest of world | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 117 | 103 | |
China | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 2,300 | $ 1,700 | |
[1] | Revenue from products shipped into China was $2.3 billion and $1.7 billion in the first quarters of 2021 and 2020, respectively, which includes shipments to customers that manufacture in China and then export end products to their customers around the world, as well as distributors that transship inventory through China to service other countries. |
Basis of presentation and sig_4
Basis of presentation and significant accounting policies and practices - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic EPS: | ||
Net income | $ 1,753 | $ 1,174 |
Income allocated to RSUs | (8) | (6) |
Income allocated to common stock for basic EPS | $ 1,745 | $ 1,168 |
Weighted average number of shares outstanding, basic (in shares) | 922 | 931 |
Basic (in dollars per share) | $ 1.89 | $ 1.25 |
Dilutive effect of stock compensation plans (in shares) | 13 | 12 |
Diluted EPS: | ||
Net income | $ 1,753 | $ 1,174 |
Income allocated to RSUs | (8) | (6) |
Income allocated to common stock for diluted EPS | $ 1,745 | $ 1,168 |
Weighted average number of shares outstanding, diluted (in shares) | 935 | 943 |
Diluted (in dollars per share) | $ 1.87 | $ 1.24 |
Basis of presentation and sig_5
Basis of presentation and significant accounting policies and practices - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, Amount (in shares) | 3 | 9 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, carrying value | $ 6,250 | $ 6,798 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, estimated fair value | $ 6,740 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Estimated annual effective tax rate | 14.00% |
Statutory corporate tax rate | 21.00% |
Income taxes - Provision for In
Income taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Taxes calculated using the estimated annual effective tax rate | $ 275 | $ 166 |
Discrete tax items | (89) | (116) |
Provision for income taxes | $ 186 | $ 50 |
Effective tax rate | 10.00% | 4.00% |
Valuation of debt and equity _3
Valuation of debt and equity investments and certain liabilities - Investments at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | $ 2,442 | $ 3,107 |
Short-Term Investments | 4,244 | 3,461 |
Long-Term Investments | 70 | 49 |
Measured at fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 1,689 | 2,482 |
Short-Term Investments | 4,244 | 3,461 |
Long-Term Investments | 14 | 18 |
Measured at fair value | Available-for-sale debt securities | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 1,236 | 886 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 0 | 0 |
Measured at fair value | Available-for-sale debt securities | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 253 | 256 |
Short-Term Investments | 1,069 | 407 |
Long-Term Investments | 0 | 0 |
Measured at fair value | Available-for-sale debt securities | U.S. government agency and Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 200 | 1,340 |
Short-Term Investments | 3,175 | 3,054 |
Long-Term Investments | 0 | 0 |
Measured at fair value | Trading securities | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 14 | 18 |
Other measurement basis | Equity-method investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 52 | 27 |
Other measurement basis | Non-marketable equity investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 4 | 4 |
Other measurement basis | Cash on hand | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 753 | 625 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | $ 0 | $ 0 |
Valuation of debt and equity _4
Valuation of debt and equity investments and certain liabilities - Aggregate Liabilities of Our Available-for-Sale Debt Investments (Details) $ in Millions | Mar. 31, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
One year or less | $ 4,647 |
One to two years | $ 50 |
Valuation of debt and equity _5
Valuation of debt and equity investments and certain liabilities - Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | $ 5,947 | $ 5,961 |
Total liabilities fair value | 337 | 350 |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities fair value | 337 | 350 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 4,575 | 5,298 |
Total liabilities fair value | 337 | 350 |
Level 1 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities fair value | 337 | 350 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 1,372 | 663 |
Total liabilities fair value | 0 | 0 |
Level 2 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities fair value | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 1,236 | 886 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 1,236 | 886 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 0 | 0 |
Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 1,322 | 663 |
Corporate obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 0 | 0 |
Corporate obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 1,322 | 663 |
U.S. government agency and Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 3,375 | 4,394 |
U.S. government agency and Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 3,325 | 4,394 |
U.S. government agency and Treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 50 | 0 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 14 | 18 |
Mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | 14 | 18 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets fair value | $ 0 | $ 0 |
Valuation of debt and equity _6
Valuation of debt and equity investments and certain liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Credit losses related to available-for-sale investments | $ 0 | $ 0 | |
Proceeds from sales, redemptions and maturities of short-term available-for-sale investments | 2,000,000,000 | 1,390,000,000 | |
Proceeds from sale of short-term investments | $ 253,000,000 | ||
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities, fair value | 0 | $ 0 | |
Assets, fair value | $ 0 | $ 0 |
Postretirement benefit plans -
Postretirement benefit plans - Expense Related to Defined Benefit and Retiree Health Care Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
U.S. | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5 | $ 4 |
Interest cost | 8 | 9 |
Expected return on plan assets | (8) | (9) |
Recognized net actuarial loss | 4 | 2 |
Net periodic benefit costs | 9 | 6 |
Settlement losses | 4 | 4 |
Total, including other postretirement losses | 13 | 10 |
U.S. | Retiree health care plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 3 | 3 |
Expected return on plan assets | (3) | (3) |
Recognized net actuarial loss | 0 | 0 |
Net periodic benefit costs | 1 | 1 |
Settlement losses | 0 | 0 |
Total, including other postretirement losses | 1 | 1 |
Non-U.S. | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 9 | 8 |
Interest cost | 9 | 9 |
Expected return on plan assets | (20) | (18) |
Recognized net actuarial loss | 2 | 3 |
Net periodic benefit costs | 0 | 2 |
Settlement losses | 1 | 1 |
Total, including other postretirement losses | $ 1 | $ 3 |
Debt and lines of credit - Addi
Debt and lines of credit - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | |||
Commercial paper | $ 0 | ||
Retirement of debt | 550,000,000 | $ 0 | |
Interest and debt expense | 46,000,000 | $ 45,000,000 | |
Notes due 2021 at 2.75% | |||
Debt Instrument [Line Items] | |||
Retirement of debt | $ 550,000,000 | ||
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 |
Debt and lines of credit - Sche
Debt and lines of credit - Schedule of Long-term Debt Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total debt | $ 6,300 | $ 6,850 |
Net unamortized discounts, premiums and issuance costs | (50) | (52) |
Total debt, including net unamortized discounts, premiums and issuance costs | 6,250 | 6,798 |
Current portion of long-term debt | 0 | (550) |
Long-term debt | $ 6,250 | 6,248 |
Notes due 2021 at 2.75% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.75% | |
Total debt | $ 0 | 550 |
Notes due 2022 at 1.85% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 1.85% | |
Total debt | $ 500 | 500 |
Notes due 2023 at 2.25% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.25% | |
Total debt | $ 500 | 500 |
Notes due 2024 at 2.625% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.625% | |
Total debt | $ 300 | 300 |
Notes due 2025 at 1.375% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 1.375% | |
Total debt | $ 750 | 750 |
Notes due 2027 at 2.90% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.90% | |
Total debt | $ 500 | 500 |
Notes due 2029 at 2.25% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.25% | |
Total debt | $ 750 | 750 |
Notes due 2030 at 1.75% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 1.75% | |
Total debt | $ 750 | 750 |
Notes due 2039 at 3.875% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 3.875% | |
Total debt | $ 750 | 750 |
Notes due 2048 at 4.15% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 4.15% | |
Total debt | $ 1,500 | $ 1,500 |
Stockholders' equity - Schedule
Stockholders' equity - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | $ 9,187 | |
Net income | (1,753) | $ (1,174) |
Other comprehensive income (loss), net of taxes | 13 | 19 |
Balance, ending | 10,166 | |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | 1,741 | 1,741 |
Balance, ending | 1,741 | 1,741 |
Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | 2,333 | 2,110 |
Common stock issued for stock-based awards | (3) | (77) |
Stock compensation | 61 | 63 |
Balance, ending | 2,391 | 2,096 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | 42,051 | 39,898 |
Net income | (1,753) | (1,174) |
Dividends declared and paid | (940) | (841) |
Dividend equivalents on RSUs | (4) | (4) |
Balance, ending | 42,860 | 40,227 |
Treasury Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | (36,578) | (34,495) |
Common stock issued for stock-based awards | 199 | 223 |
Stock repurchases | (100) | (1,730) |
Balance, ending | (36,479) | (36,002) |
AOCI | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | (360) | (347) |
Other comprehensive income (loss), net of taxes | 13 | 19 |
Balance, ending | $ (347) | $ (328) |
Stockholders' equity - Addition
Stockholders' equity - Additional Information (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Cash dividends declared per common share (in dollars per share) | $ 1.02 | $ 0.90 |
Cash dividends paid per common share (in dollars per share) | $ 1.02 | $ 0.90 |
Supplemental financial inform_3
Supplemental financial information - Amounts Reclassified out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net (OI&E) | $ 46 | $ 25 | |
Provision for income taxes | (186) | (50) | |
Net income | 1,753 | 1,174 | |
Reclassification out of Accumulated Other Comprehensive Income | Net actuarial losses of defined benefit plans | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net (OI&E) | [1] | 11 | 10 |
Provision for income taxes | (3) | (2) | |
Net income | $ 8 | $ 8 | |
[1] | Detailed in Note 5. |
Supplemental financial inform_4
Supplemental financial information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Supplemental Financial Information [Abstract] | |
Treasury shares issued related to stock compensation (in shares) | 4,465,552 |