v3.24.3
Supplemental Financial Information
 9 Months Ended
Sep. 29, 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 nine months ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Distributors1,897 1,947 5,440 5,117 
Original Equipment Manufacturers and Electronic Manufacturing Services1,321 1,463 3,970 4,653 
Other
32 24 93 84 
Total Revenue3,250 3,434 9,503 9,854 

Depreciation, amortization and impairment

For the three months endedFor the nine months ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Depreciation of property, plant and equipment149 163 440 485 
Amortization of internal use software8 5 22 14 
Amortization of other identified intangible assets61 105 204 338 
Total - Depreciation, amortization and impairment218 273 666 837 

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 three 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 nine months ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Interest income36 49 125 134 
Interest expense(96)(109)(298)(329)
Total other financial income/ (expense)(22)(15)(54)(36)
Total(82)(75)(227)(231)
Earnings per share

The computation of earnings per share (EPS) is presented in the following table:
For the three months endedFor the nine months ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Net income (loss)729 792 2,037 2,119 
Less: net income (loss) attributable to non-controlling interests11 5 22 19 
Net income (loss) attributable to stockholders718 787 2,015 2,100 
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)254,458 257,488 255,501 258,744 
Plus incremental shares from assumed conversion of:
Options 1)
134 182 155 193 
Restricted Share Units, Performance Share Units and Equity Rights 2)
3,125 3,425 2,770 2,729 
Dilutive potential common shares3,259 3,607 2,925 2,922 
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)257,717 261,095 258,426 261,666 
EPS attributable to stockholders in $:
Basic net income (loss)2.82 3.06 7.89 8.12
Diluted net income (loss)2.79 3.01 7.80 8.03
1)    There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q3 2024 and YTD 2024 (Q3 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 Q3 2024 and 0.2 million shares outstanding YTD 2024 (Q3 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 September 29, 2024 and December 31, 2023, our cash balance was $2,748 million and $3,862 million, respectively, of which $236 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 nine months of 2024 and 2023, no dividends were declared by SSMC.

Inventories

Inventories are summarized as follows:
September 29, 2024December 31, 2023
Raw materials101 113 
Work in process1,560 1,633 
Finished goods573 388 
2,234 2,134 

The amounts recorded above are net of allowance for obsolescence of $156 million as of September 29, 2024 (December 31, 2023: $189 million).
Equity Investments

At September 29, 2024 and December 31, 2023, the total carrying value of investments in equity securities is summarized as follows:
September 29, 2024December 31, 2023
Marketable equity securities1 12 
Non-marketable equity securities76 55 
Equity-accounted investments264 101 
341 168 

The total carrying value of investments in equity-accounted investees is summarized as follows:
September 29, 2024December 31, 2023
Shareholding %AmountShareholding %Amount
VisionPower Semiconductor Manufacturing Company Pte. Ltd. (VSMC)40.00 %141 — — 
European Semiconductor Manufacturing Company (ESMC) GmbH10.00 %31 — — 
SMART Growth Fund, L.P.8.41 %39 8.41 %42 
SigmaSense, LLC10.64 %30 10.64 %33 
Others— 23 — 26 
264 101 

Results related to equity-accounted investees at the end of each period were as follows:
For the three months endedFor the nine months ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
Company's share in income (loss)(6)(2)(11)(5)
Other results— — 1 — 
(6)(2)(10)(5)

Other current liabilities

Other current liabilities at September 29, 2024 and December 31, 2023 consisted of the following:
September 29, 2024December 31, 2023
Accrued compensation and benefits416 500 
Customer programs182 280 
Income taxes payable139 170 
Dividend payable258 261 
Other547 644 
1,542 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		5 — 1 6 
Amounts reclassified out of accumulated other
   comprehensive income (loss)		— 11 — 11 
Tax effects— (3)— (3)
Other comprehensive income (loss)5 8 1 14 
As of September 29, 2024182 9 (87)104 

Cash dividends

The following dividends were declared during the first nine 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 
Third quarter1.014 258 1.014 261 

The dividend declared in the third quarter (not yet paid) is classified in the condensed consolidated balance sheet in other current liabilities as of September 29, 2024 and was subsequently paid on October 9, 2024.