v3.24.2
Supplemental Financial Information
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information Supplemental Financial Information
Statement of Operations Information:

Disaggregation of revenue

The following table presents revenue disaggregated by sales channel:
For the three months endedFor the six months ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Distributors1,804 1,679 3,543 3,170 
Original Equipment Manufacturers and Electronic Manufacturing Services1,294 1,596 2,649 3,190 
Other
29 24 61 60 
Total Revenue3,127 3,299 6,253 6,420 

Depreciation, amortization and impairment

For the three months endedFor the six months ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Depreciation of property, plant and equipment146 162 291 322 
Amortization of internal use software7 5 14 9 
Amortization of other identified intangible assets
60 114 143 233 
Total - Depreciation, amortization and impairment213 281 448 564 

Effective January 2024, we increased the estimated useful lives of certain manufacturing equipment from 5 to 10 years. This change has resulted in an insignificant increase in gross margin in the first two quarters of 2024 when compared to what would have been the impact using the estimated useful life in place prior to this change.


Financial income and expense

For the three months endedFor the six months ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Interest income39 43 89 85 
Interest expense(97)(109)(202)(220)
Total other financial income/ (expense)(17)(8)(32)(21)
Total
(75)(74)(145)(156)
Earnings per share

The computation of earnings per share (EPS) is presented in the following table:
For the three months endedFor the six months ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Net income (loss)664 704 1,308 1,327 
Less: net income (loss) attributable to non-controlling interests6 6 11 14 
Net income (loss) attributable to stockholders658 698 1,297 1,313 
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)
255,478 259,160 256,023 259,369 
Plus incremental shares from assumed conversion of:
Options 1)
157 189 165 197 
Restricted Share Units, Performance Share Units and Equity Rights 2)
3,097 1,954 2,775 1,712 
Dilutive potential common shares3,254 2,143 2,940 1,909 
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)
258,732 261,303 258,963 261,278 
EPS attributable to stockholders in $:
Basic net income (loss)2.58 2.69 5.07 5.06
Diluted net income (loss)2.54 2.67 5.01 5.03
1)    There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q2 2024 and YTD 2024 (Q2 2023 and YTD 2023: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices were greater than the weighted average number of shares underlying outstanding stock options.
2)    There were no unvested RSUs, PSUs and equity rights that were outstanding in Q2 2024 and YTD 2024 (Q2 2023 and YTD 2023: no shares) that were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense were greater than the weighted average number of outstanding unvested RSUs, PSUs and equity rights or the performance goal has not been met yet.

Balance Sheet Information

Cash and cash equivalents

At June 30, 2024 and December 31, 2023, our cash balance was $2,859 million and $3,862 million, respectively, of which $241 million and $214 million was held by SSMC, our consolidated joint venture company with TSMC. Under the terms of our joint venture agreement with TSMC, a portion of this cash can be distributed by way of a dividend to us, but 38.8% of the dividend will be paid to our joint venture partner. During both first six months of 2024 and 2023, no dividends were declared by SSMC.

Inventories

Inventories are summarized as follows:
June 30, 2024December 31, 2023
Raw materials103 113 
Work in process1,568 1,633 
Finished goods477 388 
2,148 2,134 
The amounts recorded above are net of allowance for obsolescence of $185 million as of June 30, 2024 (December 31, 2023: $189 million).
Equity Investments

At June 30, 2024 and December 31, 2023, the total carrying value of investments in equity securities is summarized as follows:
June 30, 2024December 31, 2023
Marketable equity securities7 12 
Non-marketable equity securities66 55 
Equity-accounted investments117 101 
190 168 

The total carrying value of investments in equity-accounted investees is summarized as follows:
June 30, 2024December 31, 2023
Shareholding %AmountShareholding %Amount
SMART Growth Fund, L.P.8.41 %41 8.41 %42 
SigmaSense, LLC10.64 %31 10.64 %33 
Others— 45 — 26 
117 101 

Results related to equity-accounted investees at the end of each period were as follows:
For the three months endedFor the six months ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Company's share in income (loss)(3)(1)(5)(3)
Other results— — 1 — 
(3)(1)(4)(3)

Other current liabilities

Other current liabilities at June 30, 2024 and December 31, 2023 consisted of the following:
June 30, 2024December 31, 2023
Accrued compensation and benefits402 500 
Customer programs307 280 
Income taxes payable122 170 
Dividend payable259 261 
Other532 644 
1,622 1,855 
Accumulated other comprehensive income (loss)

Total comprehensive income (loss) represents net income (loss) plus the results of certain equity changes not reflected in the condensed consolidated statements of operations. The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below:
Currency 
translation
differences		Change in
fair value
cash flow
hedges		Net actuarial
gain/(losses)		Accumulated 
Other
Comprehensive
Income (loss)
As of December 31, 2023177 1 (88)90 
Other comprehensive income (loss) before
   reclassifications		(54)(20)2 (72)
Amounts reclassified out of accumulated other
   comprehensive income (loss)		— 9 — 9 
Tax effects— 3 — 3 
Other comprehensive income (loss)(54)(8)2 (60)
As of June 30, 2024123 (7)(86)30 

Cash dividends

The following dividends were declared during the first six months of 2024 and 2023 under NXP’s quarterly dividend program:

Fiscal Year 2024Fiscal Year 2023
Dividend per shareAmountDividend per shareAmount
First quarter1.014 260 1.014 263 
Second quarter1.014 259 1.014 263 
The dividend declared in the second quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of June 30, 2024 and was subsequently paid on July 10, 2024.