0001413447-21-000011 | 10-K | XBRL Viewer

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Cover - USD ($) $ in Billions	12 Months Ended
Cover - USD ($) $ in Billions	Dec. 31, 2020	Feb. 19, 2021	Jun. 26, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	001-34841
Entity Registrant Name	NXP Semiconductors N.V.
Entity Incorporation, State or Country Code	P7
Entity Tax Identification Number	98-1144352
Entity Address, Address Line One	60 High Tech Campus
Entity Address, City or Town	Eindhoven
Entity Address, Country	NL
Entity Address, Postal Zip Code	5656 AG
Country Region	+31
City Area Code	40
Local Phone Number	2729999
Title of 12(b) Security	Common shares, EUR 0.20 par value
Trading Symbol	NXPI
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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 Public Float			$ 30.2
Entity Common Stock, Shares Outstanding		277,008,199
Documents Incorporated by Reference	Portions of the Registrant’s definitive proxy statement relating to its 2021 Annual General Meeting of shareholders (the “2021 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2021 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
Amendment Flag	false
Entity Central Index Key	0001413447
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
ICFR Auditor Attestation Flag	true

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenue	$ 8,612	$ 8,877	$ 9,407
Cost of revenue	(4,377)	(4,259)	(4,556)
Gross profit	4,235	4,618	4,851
Research and development	(1,725)	(1,643)	(1,700)
Selling, general and administrative	(879)	(924)	(993)
Amortization of acquisition-related intangible assets	(1,327)	(1,435)	(1,449)
Total operating expenses	(3,931)	(4,002)	(4,142)
Other income (expense)	114	25	2,001
Operating income (loss)	418	641	2,710
Financial income (expense):
Extinguishment of debt	(60)	(11)	(26)
Other financial income (expense)	(357)	(339)	(309)
Income (loss) before income taxes	1	291	2,375
Benefit (provision) for income taxes	83	(20)	(176)
Results relating to equity-accounted investees	(4)	1	59
Net income (loss)	80	272	2,258
Less: Net income (loss) attributable to non-controlling interests	28	29	50
Net income (loss) attributable to stockholders	$ 52	$ 243	$ 2,208
Earnings per share data:
Basic (in dollars per share)	$ 0.19	$ 0.86	$ 6.78
Diluted (in dollars per share)	$ 0.18	$ 0.85	$ 6.72
Weighted average number of shares of common stock outstanding during the year (in thousands):
Basic (in shares)	279,763	282,056	325,781
Diluted (in shares)	283,809	285,911	328,606

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 80	$ 272	$ 2,258
Other comprehensive income (loss), net of tax:
Change in fair value cash flow hedges *	9	5
Change in fair value cash flow hedges *			(11)
Change in foreign currency translation adjustment *	78	(15)	(51)
Change in net actuarial gain (loss)	(45)	(38)	5
Change in net unrealized gains (losses) available-for-sale securities *	0	0	3
Total other comprehensive income (loss)	42	(48)	(54)
Total comprehensive income (loss)	122	224	2,204
Less: Comprehensive income (loss) attributable to non-controlling interests	28	29	50
Total comprehensive income (loss) attributable to stockholders	$ 94	$ 195	$ 2,154

CONSOLIDATED BALANCE SHEETS € in Millions, $ in Millions	Dec. 31, 2020 USD ($) shares	Dec. 31, 2020 EUR (€) € / shares shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2019 EUR (€) € / shares shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares
Current assets:
Cash and cash equivalents	$ 2,275		$ 1,045
Accounts receivables, net	765		667
Assets held for sale	0		50
Inventories, net	1,030		1,192
Other current assets	254		313
Total current assets	4,324		3,267
Non-current assets:
Other non-current assets	1,013		732
Property, plant and equipment, net	2,284		2,448		$ 2,436
Identified intangible assets, net	2,242		3,620		4,467
Goodwill	9,984		9,949		8,857
Total non-current assets	15,523		16,749
Total assets	19,847		20,016
Current liabilities:
Restructuring Reserve, Current	60		32
Accrued liabilities	966		815
Total current liabilities	2,017		1,791
Non-current liabilities:
Long-term debt	7,609		7,365
Restructuring Reserve, Noncurrent	14		0
Deferred tax liabilities	85		282
Other non-current liabilities	971		923
Total non-current liabilities	8,679		8,570
Equity:
Non-controlling interests	207		214
Stockholders’ equity:
Common stock, par value €0.20 per share:, Authorized 430,503,000 shares (2018: 430,503,000 shares) Issued and fully paid: 315,519,638 shares (2018: 328,702,719 shares)	59	€ 58	64	€ 63
Capital in excess of par value	14,133		15,184
Treasury shares, at cost: 9,044,952 shares (2019: 34,082,242 shares)	(1,037)		(3,037)		(3,238)	$ (342)
Accumulated other comprehensive income (loss)	117		75
Accumulated deficit	(4,328)		(2,845)
Total Stockholders’ equity	8,944		9,441
Total equity	9,151		9,655		$ 10,690	$ 13,716
Total liabilities and equity	19,847		20,016
Accounts payable	$ 991		$ 944
Preferred stock, par value per share (in euros per share) \| € / shares		€ 0.20		€ 0.20
Preferred stock, authorized shares (in shares) \| shares	645,754,500	645,754,500	645,754,500	645,754,500
Preferred stock, issued (in shares) \| shares	0	0	0	0
Common Stock, Par or Stated Value Per Share \| € / shares		€ 0.20		€ 0.20
Common Stock, authorized shares (in shares) \| shares	430,503,000	430,503,000	430,503,000	430,503,000
Common stock, issued and fully paid (in shares) \| shares	289,519,638	289,519,638	315,519,638	315,519,638
Treasury shares (in shares) \| shares	9,044,952	9,044,952	34,082,242	34,082,242	35,913,021	3,078,470

CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in euros per share)	€ 0.20	€ 0.20
Preferred stock, authorized shares (in shares)	645,754,500	645,754,500
Preferred stock, issued (in shares)	0	0
Common stock, par value (in euros per share)	€ 0.20	€ 0.20
Common stock, authorized shares (in shares)	430,503,000	430,503,000
Common stock, issued and fully paid (in shares)	289,519,638	315,519,638
Treasury shares (in shares)	9,044,952	34,082,242	35,913,021	3,078,470

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 80	$ 272	$ 2,258
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	1,988	2,047	1,987
Share-based compensation	384	346	314
Amortization of discount (premium) on debt, net	(1)	42	42
Amortization of debt issuance costs	9	11	10
Net (gain) loss on sale of assets	(115)	(20)	0
(Gain) loss on extinguishment of debt	60	11	26
Results relating to equity-accounted investees	4	(1)	(54)
(Gain) loss on equity securities, net	(21)	0	0
Deferred tax expense (benefit)	(349)	(175)	(211)
Changes in operating assets and liabilities:
(Increase) decrease in receivables and other current assets	(51)	116	187
(Increase) decrease in inventories	163	128	(65)
Increase (decrease) in accounts payable and accrued liabilities	319	(460)	(129)
Decrease (increase) in other non-current assets	7	43	(22)
Exchange differences	16	15	14
Other items	(11)	(2)	12
Net cash provided by (used for) operating activities	2,482	2,373	4,369
Cash flows from investing activities:
Purchase of identified intangible assets	(130)	(102)	(50)
Capital expenditures on property, plant and equipment	(392)	(526)	(611)
Proceeds from disposals of property, plant and equipment	4	23	1
Purchase of interests in businesses, net of cash acquired	(34)	(1,698)	(18)
Proceeds from sale of interests in businesses, net of cash divested	161	37	159
Purchase of investments	(30)	(19)	(9)
Proceeds from the sale of investments	2	1	2
Proceeds from return of equity investments	1	0	4
Net cash provided by (used for) investing activities	(418)	(2,284)	(522)
Cash flows from financing activities:
Payment of cash convertible note	0	(1,150)	0
Proceeds from settlement of cash convertible note hedge	0	144	0
Payment of bond hedge derivatives - convertible option	0	(145)	0
Repayment of Bridge Loan	0	0	(1,000)
Proceeds from Bridge Loan	0	0	1,000
Repurchase of long-term debt	(1,809)	(600)	(1,273)
Principal payments on long-term debt	0	0	(1)
Proceeds from the issuance of long-term debt	2,000	1,750	1,997
Cash paid for debt issuance costs	(15)	(24)	(23)
Cash paid for terminated acquisition adjustment event	0	0	(60)
Dividends paid to non-controlling interests	(35)	0	(54)
Dividends paid to common stockholders	(420)	(319)	(74)
Proceeds from issuance of common stock through stock plans	72	84	39
Purchase of treasury shares and restricted stock unit withholdings	(627)	(1,443)	(5,006)
Cash paid on behalf of shareholders for tax on repurchased shares	0	(128)	(142)
Other, net	(1)	0	0
Net cash provided by (used for) financing activities	(835)	(1,831)	(4,597)
Effect of changes in exchange rates on cash positions	1	(2)	(8)
Increase (decrease) in cash and cash equivalents	1,230	(1,744)	(758)
Cash and cash equivalents at beginning of period	1,045	2,789	3,547
Cash and cash equivalents at end of period	2,275	1,045	2,789
Net cash paid during the period for:
Interest	336	242	177
Income taxes, net of refunds	148	368	188
Cash proceeds from the sale of assets	165	21	0
Book value of these assets	(50)	(1)	0
Non-cash capital expenditures	119	133	137
Receivables	0	0	(36)
Inventories	$ 0	$ 0	$ 22

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions	Total	Cumulative effect adjustments	Common Stock [Member]	Capital in excess of par value	Treasury shares at cost	Accumulated Other Comprehensive Income (loss)	Accumulated Other Comprehensive Income (loss) Cumulative effect adjustments	Accumulated deficit	Accumulated deficit Cumulative effect adjustments	Total stockholders’ equity	Total stockholders’ equity Cumulative effect adjustments	Non- controlling interests
Beginning balance (in shares) at Dec. 31, 2017			342,924
Beginning balance at Dec. 31, 2017	$ 13,716		$ 71	$ 15,960	$ (342)	$ 177		$ (2,339)		$ 13,527		$ 189
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	2,258							2,208		2,208		50
Other comprehensive income	(57)					(57)	$ 3		$ 8	(57)
Share-based compensation plans	311			311						311
Shares issued pursuant to stock awards (in shares)			4,242
Shares issued pursuant to stock awards	39				457			(418)		39
Treasury shares repurchased and retired (in shares)			54,376
Treasury shares repurchased and retired	(5,006)		$ (4)	(811)	(3,353)			(838)		(5,006)
Shareholder tax on repurchased shares	(381)							(381)		(381)
Dividends non-controlling interests	(54)									0		(54)
Dividends common stock	(147)							(147)		(147)
Ending balance (in shares) at Dec. 31, 2018			292,790
Ending balance at Dec. 31, 2018	10,690	$ 11	$ 67	15,460	(3,238)	123		(1,907)		10,505	$ 11	185
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	272							243		243		29
Other comprehensive income	(48)					(48)				(48)
Share-based compensation plans	356			356						356
Shares issued pursuant to stock awards (in shares)			4,513
Shares issued pursuant to stock awards	84				422			(338)		84
Treasury shares repurchased and retired (in shares)			15,866
Treasury shares repurchased and retired	(1,443)		$ (3)	(632)	(221)			(587)		(1,443)
Shareholder tax on repurchased shares	95							95		95
Dividends common stock	(351)							(351)		(351)
Ending balance (in shares) at Dec. 31, 2019			281,437
Ending balance at Dec. 31, 2019	9,655		$ 64	15,184	(3,037)	75		(2,845)		9,441		214
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	80							52		52		28
Other comprehensive income	42					42				42
Share-based compensation plans	384			384						384
Shares issued pursuant to stock awards (in shares)			3,867
Shares issued pursuant to stock awards	72				364			(292)		72
Treasury shares repurchased and retired (in shares)			4,829
Treasury shares repurchased and retired	(627)		$ (5)	(1,267)	1,636			(991)		(627)
Expiration of stock purchase warrants	0			(168)				168		0
Dividends non-controlling interests	(35)									0		(35)
Dividends common stock	(420)							(420)		(420)
Ending balance (in shares) at Dec. 31, 2020			280,475
Ending balance at Dec. 31, 2020	$ 9,151		$ 59	$ 14,133	$ (1,037)	$ 117		$ (4,328)		$ 8,944		$ 207

Other Financial Instruments, Derivatives and Currency Risk	12 Months Ended
	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Other Financial Instruments, Derivatives and Currency Risk	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 riskThe 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.

Basis of Presentation and Overview	12 Months Ended
Basis of Presentation and Overview	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Overview	Basis of Presentation and Overview The Consolidated Financial Statements include the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. 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. We have reclassified certain prior period amounts to conform to current period presentation. Segment reporting Prior to January 1, 2019, HPMS was our sole reportable segment. Corporate and Other represented the remaining portion to reconcile to the Consolidated Financial Statements. Effective January 1, 2019, NXP removed the reference to HPMS in its organizational structure in acknowledgment of the one reportable segment representing the entity as a whole and reflects the way in which our chief operating decision maker executes operating decisions, allocates resources, and manages the growth and profitability of the Company. 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.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

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 is highly subjective and requires significant 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.

The Company applies the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. The Company applies the practical expedient to expense sales commissions when incurred because the amortization period would have been one year or less.

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.

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 credit loss 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 risk of credit loss based on numerous factors including historical loss rates, credit-risk concentration, 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 net realizable value. 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 finance 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.

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 is intended to improve financial reporting of leasing transactions by requiring organizations that lease assets to recognize assets and liabilities for the rights and obligations created by leases that extend more than twelve months from the balance sheet date. This accounting update also requires additional disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for financial statements issued for annual and interim periods beginning after December 15, 2018 for public business entities and we have adopted the standard.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), followed in July 2018 by ASU 2018-10, Codification Improvements to Topic 842 Leases, and ASU 2018-11, Leases (Topic 842): Targeted Improvements. 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. As a result of this adoption and the required disclosures, the Company revised its accounting policy for leases as stated below.

The new standard became effective for us on January 1, 2019. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. See also Note 15, Leases.

We elected to adopt the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, along with the practical expedient to use hindsight when determining the lease term.

We determine if an arrangement is a lease at inception of the arrangement. Once it is determined that an arrangement is, or contains, a lease, that determination should only be reassessed if the legal arrangement is modified. Changes to assumptions such as market-based factors do not trigger a reassessment. Determining whether a contract contains a lease requires judgement. In general, arrangements are considered to be a lease when all of the following apply:

–It conveys the right to control the use of an identified asset for a period of time in exchange for consideration;

–We have substantially all economic benefits from the use of the asset; and

–We can direct the use of the identified asset

The terms of a lease arrangement determine how a lease is classified and the resulting income statement recognition. When the terms of a lease effectively transfer control of the underlying asset, the lease represents an in substance financed purchase (sale) of an asset and the lease is classified as a finance lease by the lessee and a sales-type lease by the lessor. When a lease does not effectively transfer control of the underlying asset to the lessee, but the lessor obtains a guarantee for the value of the asset from a third party, the lessor would classify a lease as a direct financing lease. All other leases are classified as operating leases.

With the exception of five instances (with a combined value of $70 million), the Company’s lease arrangements are all operating leases.

Lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at January 1, 2019 or commencement date, if later, in determining the present value of future payments. The lease payments that are included in the lease liability are comprised of fixed payments (including in-substance fixed payments), less any lease incentives receivable; variable lease payments that depend on an index or rate; amounts expected to be payable by the lessee under residual value guarantees; the exercise price of a purchase option that the lessee is reasonably certain to exercise; and payments for terminating the lease unless it is reasonably certain that early termination will not occur. The lease ROU asset includes any lease payment made and initial direct costs incurred. Our lease terms include the non-cancelable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and the periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise the option.

For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For finance leases each lease payment is allocated between the liability and finance cost. The finance cost is charged to the consolidated statement of operations over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The finance lease asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

We have lease agreements with lease and non-lease components. Except for gas and chemical contracts, NXP did not make the election to treat the lease and non-lease components as a single component, and considers the non-lease components as a separate unit of account.

Equity investments

NXP’s equity investments include equity method investments, marketable equity investments and non-marketable equity investments.

Equity method investments: NXP’s investments over which it has significant influence, but not control are accounted for using the equity method. Under the equity method, the investment is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the NXP’s share of net assets of the equity accounted investee since the acquisition date. NXP’s share of the results of operations of the equity accounted investees are recognized in ‘Results relating to equity-accounted investees’.

Marketable equity investments: all equity investments with a readily determinable fair value, other than equity-method investments, in unconsolidated entities are measured at fair value through earnings in the statement of operations on a recurring basis. We classify marketable securities as current or non-current based on the nature of the securities and their availability for use in current operations. Gains and losses on investments in marketable equity securities, realized and unrealized, are recognized in ‘Financial income (expense)’.

Non-marketable equity investments: all equity investments without a readily determinable fair value, other than equity-method investments, in unconsolidated entities are recorded at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar securities. All gains and losses on investments in non-marketable equity investments, realized and unrealized, are recognized in ‘Financial income (expense)’.

We monitor our equity method investments and non-marketable equity securities for events or changes in circumstances which may indicate the investments are impaired. If an assessment indicates an investment is impaired, we recognize a charge for the difference between the estimated fair value and the carrying value. For equity method investments, we record impairment losses in earnings only when impairments are considered other-than-temporary.

Business combinations

We allocate the purchase price paid for assets acquired and liabilities assumed in connection with our acquisitions based on their estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates and judgments that could materially affect the timing or amounts recognized in our financial statements.

Significant judgment is required in estimating the fair value of acquired intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, market segment growth rates, and our assumed market segment share, as well as the estimated useful life of intangible assets. Further judgment is required in estimating the fair values of deferred tax assets and liabilities, uncertain tax positions and tax-related valuation allowances, which are initially estimated as of the acquisition date, as well as inventory, property, plant and equipment, pre-existing liabilities or legal claims, deferred revenue and contingent consideration, each as may be applicable.

The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management but are inherently uncertain. Our assumptions and estimates are based upon comparable market data and information obtained from our management and the management of the acquired companies as well as the amount and timing of future cash flows (including expected revenue growth rates and profitability), the underlying product or technology life cycles, the economic barriers to entry and the discount rate applied to the cash flows. As such, acquired tangible and identified intangible assets are classified as Level 3 assets. Unanticipated market or macroeconomic events and circumstances may occur that could affect the accuracy or validity of the estimates and assumptions.

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 unit based on the relative expected fair value provided by the acquisition. We perform an impairment assessment at least once annually, 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. One year 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 an impairment assessment for indefinite-lived intangible assets at least once annually, 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.

Impairment or disposal of identified long-lived assets

We perform reviews of long-lived assets including property, plant and equipment, ROU assets, and intangible assets subject to amortization, whenever facts and circumstances indicate that the useful life is shorter than what we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts

and circumstances exist, we assess the recoverability of the long-lived assets 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. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. Impairment losses, 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. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair values less costs to sell and are not depreciated.

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. 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
Year-ended December 31, 2020	1.2280	1.1412	1.0862	1.2280
Year-ended December 31, 2019	1.1217	1.1210	1.0935	1.1476
Year-ended December 31, 2018	1.1451	1.1794	1.1352	1.2431

(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 date of the transaction or the date of 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. The cash flows associated with these derivative instruments are classified in the consolidated statements of cash flows in the same category as the hedged transaction.

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 cash flows associated with these derivative instruments are classified in the consolidated statements of cash flows in the same category as the hedged transaction. 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, strategy in undertaking the hedge transaction and the hedged risk, and 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

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 for the years ended December 31, 2020 and December 31, 2019 were as follows:


	2020	2019
Euro	532	579
Chinese renminbi	150	90
Great British pound	34	22
Japanese yen	21	29
Malaysian ringgit	122	138
Singapore dollar	65	49
Swiss franc	29	28
Taiwan dollar	159	103
Thai baht	104	69
Other	48	41

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 repurchase 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.

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. This includes income derived from manufacturing service arrangements (“MSA”) and transitional service arrangements (“TSA”) that are put in place when we divest a business or activity as well as related expenditures.

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 an uncertain 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 greater than 50% 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 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. NXP’s grants through the incentive plan are equity settled. 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, PSUs and RSUs, the grant-date value, less estimated pre-vest forfeitures, is expensed on a straight-line basis over the vesting period. The vesting period for stock options is generally four years, for RSUs and PSUs it is generally 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 17% of our revenue in 2020, 14% in 2019 and 14% in 2018. One other distributor accounted for less than 10% of our revenue in 2020 and 2019, and 10% in 2018. No other distributor accounted for greater than 10% of our revenue for 2020, 2019 or 2018. One OEM for which we had direct sales to accounted for less than 10% of our revenue in 2020, 11% in 2019 and 11% in 2018. No other individual OEM for which we had direct sales to accounted for more than 10% of our revenue for 2020, 2019 or 2018.

Credit exposure related to NXP’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts.

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 2020

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard changes the accounting for recognizing

impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments are estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new accounting guidance generally requires the modified retrospective transition method, with the cumulative effect of applying the new accounting guidance recognized as an adjustment to opening retained earnings in the year of adoption, except for certain financial assets where the prospective transition method is required, such as available-for-sale debt securities for which an other-than-temporary impairment has been recorded. The ASUs became effective for us on January 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements and related disclosures.

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. The ASU became effective for us on January 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements and related disclosures.

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. 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. ASU 2018-13 became effective for us on January 1, 2020. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related 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 are no longer 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. ASU 2018-14 became effective for us on December 15, 2020. The adoption of this ASU is reflective in Note-13 Post Retirement Benefit Plans. The adoption of this update did not have a material impact on the Company’s financial statements and related 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. ASU 2018-15 became effective

for us on January 1, 2020, and has been adopted prospectively. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures.

No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements.

Acquisitions and Divestments

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Acquisitions and Divestments

2020

There were no material acquisitions during 2020. On February 3, 2020, we completed the sale of the Company's Voice and Audio Solutions (VAS) assets, pursuant to the definitive agreement dated August 16, 2019 and which was previously classified as held for sale, with Shenzhen Goodix Technology Co., Ltd. ("Goodix") from China, for a net cash amount of $161 million inclusive of final working capital adjustments. This resulted in a gain of $110 million recorded in Other income (expense) on the Consolidated Statements of Operations.

2019

On December 6, 2019, we completed the acquisition of Marvell’s Wireless WiFi Connectivity Business Unit, Bluetooth technology portfolio and related assets for total consideration of $1.7 billion, net of closing adjustments. The acquisition complements NXP’s processing, security and connectivity offerings in the Industrial & IoT, as well as in the Automotive and Communication Infrastructure markets.

The fair values of the assets acquired and liabilities assumed in the acquisition, by major class, were recognized as follows:


Tangible fixed assets			2
Inventory			50
Identified intangible assets			514
Goodwill			1,138
Deferred tax assets			1
Net assets acquired			1,705

Our valuation procedures related to the acquired assets and assumed liabilities was completed during the second quarter of 2020.

Goodwill arising from the acquisition is attributed to the anticipated growth from new product sales, sales to new customers, the assembled workforce and synergies expected from the combination. Substantially all of the goodwill recognized is expected to be deductible for income tax purposes.

The identified intangible assets assumed were recognized as follows:


	Fair Value	Weighted Average Estimated Useful Life (in Years)
Customer relationships (included in customer-related)	20	6
Developed technology (included in technology-based)	324	4.4
In-process research and development (1)	170	N/A
Total identified intangible assets	514

1)Acquired in-process research and development (“IPR&D”) is an intangible asset classified as an indefinite lived asset until the completion or abandonment of the associated research and development effort. IPR&D will be amortized over an estimated useful life to be determined at the date the associated research and development effort is completed, or expensed immediately when, and if, the project is abandoned. Acquired IPR&D is not amortized during the period that it is considered indefinite lived, but rather is subject to annual testing for impairment or when there are indicators for impairment.

Variations of the income approach were applied to estimate the fair values of the intangible assets acquired. Developed technology and IPR&D were valued using the multi-period excess earnings method which reflects the present values of the projected cash flows that are expected to be generated by the existing technology and IPR&D less charges representing the contribution of other assets to those cash flows. Customer relationships were valued using the distributor method which uses market-based data to support the selection of profitability related to the customer relationship function.

Acquisition-related transaction costs ($5 million) such as legal, accounting and other related expenses were recorded as a component of selling, general and administrative expense in our Consolidated Statement of Operations.

Pro forma financial information (unaudited)

The following unaudited pro forma financial information presents combined consolidated results of operations for each of the fiscal years presented, as if Marvell’s Wireless WiFi Connectivity Business Unit, Bluetooth technology portfolio and related assets had been acquired as of January 1, 2018:


	2019	2018
Revenue	9,169	9,715
Net income (loss) attributable to stockholders	237	2,154
Net income (loss) per common share attributable to stockholders:
–Basic	0.84	6.61
–Diluted	0.83	6.55

The pro forma information include the effect of certain purchase accounting adjustments such as the estimate changes in amortization and depreciation for identified intangible assets and property, plant and equipment acquired and adjustments to share-based compensation expense. The pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the revenue or operating results that would have been achieved had the acquisition actually taken place as of January 1, 2018 or of the results of future operations of the combined business. In addition, these results are not intended to be a projection of future results and do not reflect synergies that might be achieved from the combined operations.

On March 27, 2019, we sold our remaining equity interest in WeEn, receiving net cash proceeds of $37 million.

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 Consolidated 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.

Assets Held for Sale

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale

In the second quarter of 2019, NXP management, in reviewing its portfolio, concluded that certain activities (Voice and Audio Solutions (VAS)) no longer fit the NXP strategic portfolio and took actions that resulted in the assets meeting the held for sale criteria. On August 16, 2019, NXP reached a definitive agreement with Shenzhen Goodix Technology Co., Ltd. ("Goodix") from China, under which Goodix will acquire all of these assets for an amount of $165 million. On February 3, 2020, we completed the transaction. Refer to Note 3 Acquisitions and Divestments.

The VAS assets presentation as held for sale did not meet the criteria to be classified as a discontinued operation at December 31, 2019 primarily due to the disposal of this business not representing a strategic shift that would have a major effect on the Company’s operations and financial results.

The following table summarizes the carrying value of the VAS assets held for sale:


			December 31, 2019
Inventories			8
Identified intangible assets, net			1
Goodwill			41
Assets held for sale			50

Supplemental Financial Information

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Financial Information

Statement of Operations Information

Disaggregation of revenue

The following table presents revenue disaggregated by sales channel:


	2020	2019	2018
Distributors	4,720	4,409	4,891
Original Equipment Manufacturers and Electronic Manufacturing Services	3,728	4,352	4,229
Other 1)	164	116	287
Total	8,612	8,877	9,407

1)Prior year information has been reclassified to align with NXP's current year presentation.

Depreciation, amortization and impairment

Depreciation and amortization, including impairment charges, are as follows:


	2020	2019	2018
Depreciation of property, plant and equipment	547	518	478
Amortization of internal use software	6	8	8
Amortization of other identified intangible assets (*)	1,435	1,521	1,501
	1,988	2,047	1,987

(*) For the period ending December 31, 2020, the amount includes an impairment relative to IPR&D acquired as part of the acquisition of Freescale for an amount of $36 million.

Depreciation of property, plant and equipment is primarily included in cost of revenue.

Other income (expense)

As of January 1, 2019, Income derived from manufacturing service arrangements (“MSA”) and transitional service arrangements (“TSA”) that are put in place when we divest a business or activity, is included in other income (expense). These arrangements are short-term in nature and are expected to decrease as the divested business or activity becomes more established.

The following table presents the split of other income (expense):


	2020	2019	2018
Result from MSA and TSA arrangements	—	—	—
Other, net	114	25	2,001
Total	114	25	2,001

Financial income (expense)


	2020	2019	2018
Interest income	13	57	48
Interest expense	(362)	(370)	(273)
Total interest expense, net	(349)	(313)	(225)
Net gain (loss) on extinguishment of debt	(60)	(11)	(26)
Foreign exchange rate results	(16)	(15)	(14)
Miscellaneous financing income (expense) and other, net (*)	8	(11)	(70)
Total other financial income (expense)	(68)	(37)	(110)
Total	(417)	(350)	(335)

(*) 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.

Balance Sheet Information

Cash and cash equivalents

At December 31, 2020 and December 31, 2019, our cash balance was $2,275 million and $1,045 million, respectively, of which $185 million and $188 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 2020, $90 million dividend (2019: no dividend) was paid by SSMC.

Equity Investments

At December 31, 2020 and December 31, 2019, the total carrying value of investments in equity securities is summarized as follows:


	2020	2019
Marketable equity securities	19	1
Non-marketable equity securities	40	25
Equity-accounted investments	61	11
	120	37

The total carrying value of investments in equity-accounted investees is summarized as follows:


	2020			2019
	Shareholding %		Amount	Shareholding %	Amount
Wise Road Industry Investment Fund I, L.P.	10.17	%	29	—	—
Others	—		32	—	11
			61		11

Results related to equity-accounted investees at the end of each period were as follows:


	2020	2019	2018
Company’s share in income (loss)	(4)	(2)	7
Other results	—	3	52
	(4)	1	59

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.

Restructuring Charges

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

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. In the fourth quarter of 2020, we recognized $38 million of employee severance costs in our restructuring liabilities, which was primarily related to specific targeted actions. During 2019 and 2018, there were no new significant restructuring programs.

The following table presents the changes in the position of restructuring liabilities in 2020:


	Balance January 1, 2020	Additions	Utilized	Released	Other changes(1)	Balance December 31, 2020
Restructuring liabilities	32	77	(36)	—	1	74

(1) Other changes primarily related to translation differences and internal transfers.

The total restructuring liability as of December 31, 2020 of $74 million is classified in the Consolidated Balance Sheets under current liabilities ($60 million) and non-current liabilities ($14 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 2019:


	Balance January 1, 2019	Additions	Utilized	Released	Other changes(1)	Balance December 31, 2019
Restructuring liabilities	65	29	(57)	(4)	(1)	32

(1) Other changes primarily related to translation differences and internal transfers.

The total restructuring liability as of December 31, 2019 of $32 million is classified in the Consolidated Balance Sheets under current liabilities.

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 recorded in 2020, 2019 and 2018 are as follows:


	2020	2019	2018
Personnel lay-off costs	78	32	4
Other exit costs	—	—	2
Release of provisions/accruals	—	(4)	—
Net restructuring charges	78	28	6

The restructuring charges recorded in operating income are included in the following line items in the statement of operations:


	2020	2019	2018
Cost of revenue	15	3	—
Research & development	39	16	—
Selling, general and administrative	24	9	7
Other (income) expense	—	—	(1)
Net restructuring charges	78	28	6

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

In 2020, NXP generated income before income taxes of $1 million (2019: income of $291 million; 2018: income of $2,375 million). The components of income (loss) before income taxes are as follows:


	2020	2019	2018
Netherlands	447	429	2,570
Foreign	(446)	(138)	(195)
	1	291	2,375

The components of income tax benefit (expense) are as follows:


	2020	2019	2018
Current taxes:
Netherlands	(147)	(90)	(296)
Foreign	(119)	(105)	(91)
	(266)	(195)	(387)
Deferred taxes:
Netherlands	58	(28)	2
Foreign	291	203	209
	349	175	211
Total income tax benefit (expense)	83	(20)	(176)

A reconciliation of the statutory income tax rate in the Netherlands as a percentage of income (loss) before income taxes and the effective income tax rate is as follows:


	2020		2019		2018
	amount	%	amount	%	amount	%
Statutory income tax rate in the Netherlands	—	25.0	73	25.0	594	25.0

Rate differential between the local statutory rates and the statutory rate of the Netherlands	22	2,175.0	16	5.5	19	0.8
Net change in valuation allowance	35	3,500.0	59	20.2	10	0.4
Non-deductible expenses/losses	61	6,100.0	52	17.8	64	2.7
Netherlands tax incentives	(48)	(4,800.0)	(68)	(23.2)	(252)	(10.6)
Foreign tax incentives	(117)	(11,700.0)	(118)	(40.5)	(119)	(5.0)
Changes in estimates of prior years' income taxes	(13)	(1,300.0)	(3)	(1.2)	(83)	(3.5)
Sale of non-deductible goodwill	10	1,000.0	—	—	—	—
Withholding taxes	(31)	(3,100.0)	5	1.8	(12)	(0.6)
Other differences	(2)	(200.0)	4	1.5	(45)	(1.8)
Effective tax rate	(83)	(8,300.0)	20	6.9	176	7.4

We recorded an income tax benefit of $83 million in 2020, which reflects an effective tax rate of (8300.0)% compared to an expense of $20 million and an effective rate of 6.9% in 2019.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, changes in estimates of prior years' income taxes, change in valuation allowance and non-deductible expenses, sale of non-deductible goodwill and withholding taxes. The impact of these items results in offsetting factors that attribute to the change in the effective tax rate between the two periods, with the significant drivers outlined below:

•The Company benefits from certain tax incentives, which reduce the effective tax rate. The dollar amount of the incentive in any given year is commensurate with the taxable income in that same period. For 2020, the Netherlands tax incentives was lower than 2019 by $20 million, mainly due to the fact that NXP has a lower qualifying income. Note that for 2019, the Netherlands tax incentives was lower than 2018, mainly due to the fact that NXP had received a break-up fee from Qualcomm of $2 billion in 2018 which drove a higher income before tax in 2018.

•The increase in the valuation allowance is mostly due to new Dutch corporate income tax law applicable as from 2019. A portion of the interest expenses is non-deductible in the year it is recorded but can be carried forward without expiration. The difference in valuation allowance in 2020 as compared with 2019 is mainly due to the fact that there was less Netherlands related interest expense impacted by the interest limitation rules as a result of higher qualifying income mainly linked to the divestiture of the VAS business and the lower Netherlands tax incentives.

•The tax effect of the non-deductible goodwill of $10 million is linked to the divestiture of the VAS business in 2020.

•The difference of $36 million in the withholding tax benefit in 2020 as compared with 2019 is mainly due to changes in the applicable deferred tax liability rate regarding future remittances of the earnings of foreign subsidiaries and due to additional undistributed earnings being considered permanently reinvested.

•The change in estimates of prior years’ income taxes was higher in 2020 as compared to 2019, mostly relating to NXP USA ($20 million) primarily due to the early adoption of the U.S. regulations issued in Q3 2020. This was partly offset by other changes in estimates relating to multiple jurisdictions.

•The changes in estimates of prior years' income taxes was higher in 2018 comparing with 2019 as a result of the agreement NXP reached with the Dutch tax authorities relative to the application of the Dutch innovation box regime to the taxable income attributable to the Netherlands. This agreement 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 higher other differences in 2018 relate primarily to a tax benefit on the liquidation of a former investment of $45 million.

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 $11 million in 2020 (2019: $12 million; 2018: $21 million). The benefit of this tax holiday on net income per share (diluted) was $0.04 in 2020 (2019: $0.04; 2018: $0.06).

Deferred tax assets and liabilities

The principal components of deferred tax assets and liabilities are presented below:


	2020	2019
Operating loss and tax credit carry forwards	480	499
Disallowed interest carry forwards	69	103
Other accrued liabilities	107	111
Pensions	121	95
Other non-current liabilities	58	53
Share-based compensation	13	15
Restructuring liabilities	15	5
Receivables	55	64
Inventories	8	4
Total Deferred Tax Assets	926	949
Valuation allowance	(227)	(190)
Total Deferred Tax Assets, net of valuation allowance	699	759

Identified intangible assets, net	(116)	(520)
Undistributed earnings of foreign subsidiaries	(54)	(99)
Property, plant and equipment, net	(15)	(34)
Goodwill	(66)	(43)
Other current and non-current assets	(56)	(52)
Total Deferred Tax Liabilities	(307)	(748)
Net Deferred Tax Position	392	11

The classification of the deferred tax assets and liabilities in the Company’s Consolidated Balance Sheets is as follows:


	2020	2019
Deferred tax assets within other non-current assets	477	293
Deferred tax liabilities within non-current liabilities	(85)	(282)
	392	11

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 $37 million during 2020 (2019: $45 million increase). Besides the net change in the valuation allowance of $35 million this mainly includes an increase of the valuation allowance due to a change in tax rates for $6 million and a decrease of the valuation allowance due to the expiration of tax attributes for $9 million.

We consider all available evidence in forming a judgment regarding the valuation allowance as of December 31, 2020, 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, 2020 tax loss carryforwards of $737 million (inclusive of $162 million of U.S. state tax losses) will expire as follows:


	Balance	Scheduled expiration
	December 31,
	2020	2021	2022	2023	2024	2025	2026-2030	later	unlimited
Tax loss carryforwards	737	—	12	2	3	81	160	70	409

This overview is excluding disallowed interest carryforwards of $276 million which have an unlimited expiration date.

The Company also has tax credit carryforwards of $468 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,
	2020	2021	2022	2023	2024	2025	2026-2030	later	unlimited
Tax credit carryforwards	468	1	11	10	11	18	71	294	52

The net income tax payable (excluding the liability for unrecognized tax benefits) as of December 31, 2020 amounted to $117 million (2019: net income tax receivable of $2 million) and includes amounts directly receivable from or payable to tax authorities.

The Company does not indefinitely reinvest the majority of the undistributed earnings of its subsidiaries. Consequently, the Company has recognized a deferred tax liability of $54 million at December 31, 2020 (2019: $99 million) for the additional income taxes and withholding taxes payable upon the future remittances of these earnings of foreign subsidiaries. The Company considers $114 million of the undistributed earnings indefinitely reinvested although the timing of the reversal can be controlled. Upon repatriation of those earnings the Company would be subject to tax of $11 million which is not recognized as deferred tax liability at December 31, 2020.

A reconciliation of the beginning and ending amount of unrecognized tax benefits excluding interest and penalties is as follows:


	2020	2019	2018
Balance as of January 1,	159	165	177
Translation differences	—	(1)	(4)
Lapse of statute of limitations	(4)	(3)	—
Increases from tax positions taken during prior periods	5	4	7
Decreases from tax positions taken during prior periods	—	(4)	(17)
Increases from tax positions taken during current period	7	7	7
Decreases relating to settlements with the tax authorities	(6)	(9)	(5)
Balance as of December 31,	161	159	165

Of the total unrecognized tax benefits at December 31, 2020, $140 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 2020 amounted to a $4 million expense (2019: $3 million benefit; 2018: $3 million benefit). As of December 31, 2020 the Company has recognized a liability for related interest and penalties of $13 million (2019: $11 million; 2018: $14 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 (2017-2019), Germany (2017-2019), USA (2005-2019), China (2010-2019), Taiwan (2015-2019), Thailand (2015-2019), Malaysia (2011-2019) and India (2004, 2005, 2007-2019).

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Accounts Receivable, net

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Accounts Receivable, net

Accounts receivable, net are summarized as follows:


	2020	2019
Accounts receivable from third parties	767	669
Allowance for credit loss	(2)	(2)
	765	667

The following table presents accounts receivable, net disaggregated by sales channel:


	2020	2019
Distributors	186	80
Original Equipment Manufacturers and Electronic Manufacturing Services	533	536
Other	46	51
	765	667

Inventories, net

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories, net

Inventories are summarized as follows:


	2020	2019
Raw materials	66	52
Work in process	786	894
Finished goods	178	246
	1,030	1,192

The portion of finished goods stored at customer locations under consignment amounted to $31 million as of December 31, 2020 (2019: $41 million).

The amounts recorded above are net of an allowance for obsolescence of $122 million as of December 31, 2020 (2019: $114 million).

Property, Plant and Equipment, net

12 Months Ended

Dec. 31, 2020

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)	2020	2019
Land		165	164
Buildings	9 to 50	1,425	1,359
Machinery and installations	2 to 10	3,970	3,749
Other Equipment	1 to 5	751	665
Prepayments and construction in progress		210	253
		6,521	6,190
Less accumulated depreciation		(4,237)	(3,742)
Property, plant and equipment, net of accumulated depreciation		2,284	2,448

Identified Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Identified Intangible Assets

The changes in identified intangible assets were as follows:


			Total
Balance as of January 1, 2019
Cost			9,183
Accumulated amortization/impairment			(4,716)
Book value			4,467
Changes in book value:
Acquisitions/additions			683
Transfer to assets held for sale			(1)
Amortization			(1,529)
Total changes			(847)
Balance as of December 31, 2019
Cost			9,384
Accumulated amortization/impairment			(5,764)
Book value			3,620
Changes in book value:
Acquisitions/additions			63
Transfer to assets held for sale			—
Amortization			(1,398)
Impairment			(43)
Translation differences			—
Total changes			(1,378)
Balance as of December 31, 2020
Cost			9,249
Accumulated amortization/impairment			(7,007)
Book value			2,242

Identified intangible assets as of December 31, 2020 and 2019 respectively were composed of the following:


	December 31, 2020		December 31, 2019
	Gross carrying amount	Accumulated amortization	Gross carrying amount	Accumulated amortization
IPR&D(1)	147	—	272	—
Marketing-related	81	(81)	81	(67)
Customer-related	957	(381)	968	(340)
Technology-based	8,064	(6,545)	8,063	(5,357)
Identified intangible assets	9,249	(7,007)	9,384	(5,764)

(1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort.

The estimated amortization expense for these identified intangible assets for each of the five succeeding years is:


2021			675
2022			572
2023			340
2024			157
2025			106
Thereafter			392

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, 2020.

Goodwill

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in goodwill in 2020 and 2019 were as follows:


	2020	2019
Balances as of January 1
Cost	10,063	8,971
Accumulated impairment	(114)	(114)
Book value	9,949	8,857
Changes in book value:
Acquisitions	3	1,138
Transfer to assets held for sale	—	(41)
Translation differences	32	(5)
Total changes	35	1,092
Balances as of December 31
Cost - Balance	10,098	10,063
Accumulated impairment - Balance	(114)	(114)
Book value - Balance	9,984	9,949

No goodwill impairment charges were required to be recognized in 2020 or 2019.

The fair value of the reporting unit substantially exceeds the carrying value of the reporting unit.

See Note 3, “Acquisitions and Divestments”.

Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

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 1,390 companies and 626,000 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 increase from 26.41% (2020) to 27.59% (2021).


PME multi-employer plan	2020	2019	2018
NXP’s contributions to the plan	33	31	34
(including employees’ contributions)	4	4	4
Average number of NXP’s active employees participating in the plan	2,048	2,129	2,183
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 2020 was $103 million (2019: $98 million; 2018: $105 million) of which $47 million (2019: $47 million; 2018: $49 million) represents defined-contribution plans and $29 million (2019: $27 million; 2018: $30 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 ongoing cost of defined-benefit plans amounted to $27 million in 2020 (2019: a cost of $24 million; 2018: a cost of $26 million).

The table below provides a summary of the changes in the pension benefit obligations and defined-benefit pension plan assets for 2020 and 2019, 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.


	2020	2019
Projected benefit obligation
Projected benefit obligation at beginning of year	665	617
Service cost	17	14
Interest cost	7	12
Actuarial (gains) and losses	65	50
Curtailments and settlements	—	—
Benefits paid	(22)	(23)
Exchange rate differences	58	(5)
Projected benefit obligation at end of year	790	665
Plan assets
Fair value of plan assets at beginning of year	203	201
Actual return on plan assets	5	5
Employer contributions	22	22
Curtailments and settlements	—	—
Benefits paid	(22)	(23)
Exchange rate differences	16	(2)
Fair value of plan assets at end of year	224	203
Funded status	(566)	(462)
Classification of the funded status is as follows
– Accrued pension cost within other non-current liabilities	(554)	(452)
– Accrued pension cost within accrued liabilities	(12)	(10)
Total	(566)	(462)
Accumulated benefit obligation
Accumulated benefit obligation for all Company-dedicated benefit pension plans	755	621
Plans with assets less than accumulated benefit obligation (including unfunded plans)
– Fair value of plan assets	220	198
– Accumulated benefit obligations	750	617
Amounts recognized in accumulated other comprehensive income (before tax)
Total AOCI at beginning of year	140	94
– Net actuarial loss (gain)	58	47
– Exchange rate differences	16	(1)
Total AOCI at end of year	214	140

The net amount of projected benefit obligation and plan assets for all underfunded (including unfunded) pension plans was $566 million and $462 million at December 31, 2020 and 2019, respectively, and was classified as liabilities in the Consolidated Balance Sheets.

For the year ended December 31, 2020, actuarial losses were primarily related to decreases in discount rates of approximately 40 basis points on a weighted basis and updates to mortality table benchmarks in various countries. For the year ended December 31, 2019, actuarial losses were primarily related to decreases in discount rates of approximately 80 basis points.

The weighted average assumptions used to calculate the projected benefit obligations were as follows:


	2020		2019
Discount rate	0.8	%	1.2	%
Rate of compensation increase	1.6	%	1.5	%

The weighted average assumptions used to calculate the net periodic pension cost were as follows:


	2020		2019		2018
Discount rate	1.2	%	2.0	%	1.9	%
Expected returns on plan assets	2.6	%	2.7	%	3.0	%
Rate of compensation increase	1.5	%	1.8	%	1.8	%

For the Company’s major plans, the discount rate used is based on high quality corporate bonds (iBoxx Corporate Euro AA 10+).

Plans in certain Asian 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:


	2020	2019	2018
Service cost	17	14	16
Interest cost on the projected benefit obligation	7	12	12
Expected return on plan assets	(5)	(6)	(6)
Amortization of net (gain) loss	8	4	4
Curtailments & settlements	—	—	—
Net periodic cost	27	24	26

The components of net periodic pension cost other than the service cost component are included in Other financial income (expense) in the Consolidated Statements of Operations.

Plan assets

The actual pension plan asset allocation at December 31, 2020 and 2019 is as follows:


	2020		2019
Asset category:
Equity securities	34	%	31	%
Debt securities	39	%	43	%
Insurance contracts	7	%	7	%
Other	20	%	19	%
	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 $224 million include $195 million related to the German and Japanese pension funds.

The following table summarizes the classification of these assets.


	2020			2019
	Level I	Level II	Level III	Level I	Level II	Level III
Equity securities	—	71	—	—	59	—
Debt securities	8	62	—	11	62	—
Insurance contracts	—	15	—	—	14	—
Other	—	21	18	2	18	14
	8	169	18	13	153	14

The Company currently expects to make $9 million of employer contributions to defined-benefit pension plans and $10 million of expected cash payments in relation to unfunded pension plans in 2021.

Estimated future pension benefit payments

The following benefit payments are expected to be made (including those for funded plans):


2021			24
2022			24
2023			26
2024			28
2025			28
Years 2026-2030			170

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.

The accumulated postretirement benefit obligation at the end of 2020 equals $6 million (2019: $9 million).

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Debt

Long-term debt

The following table summarizes the outstanding long-term debt as of December 31, 2020 and 2019:


	2020			2019
	Maturities	Amount	Effective rate	Amount	Effective rate
Fixed-rate 4.125% senior unsecured notes	Jun, 2021	—	4.125	1,350	4.125
Fixed-rate 4.625% senior unsecured notes	Jun, 2022	—	4.625	400	4.625
Fixed-rate 3.875% senior unsecured notes	Sep, 2022	1,000	3.875	1,000	3.875
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	1,000	4.875
Fixed-rate 2.7% senior unsecured notes	May, 2025	500	2.700	—	—
Fixed-rate 5.35% senior unsecured notes	Mar, 2026	500	5.350	500	5.350
Fixed-rate 3.875% senior unsecured notes	Jun, 2026	750	3.875	750	3.875
Fixed-rate 3.15% senior unsecured notes	May, 2027	500	3.150	—	—
Fixed-rate 5.55% senior unsecured notes	Dec, 2028	500	5.550	500	5.550
Fixed-rate 4.3% senior unsecured notes	Jun, 2029	1,000	4.300	1,000	4.300
Fixed-rate 3.4% senior unsecured notes	May, 2030	1,000	3.400	—	—
Floating-rate revolving credit facility (RCF)	Jun, 2024	—	—	—	—
Total principal		7,650		7,400
Unamortized discounts, premiums and debt issuance costs		(41)		(35)
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments		7,609		7,365
Current portion of long-term debt		—		—
Long-term debt		7,609		7,365


	Range of interest rates		Average rate of interest		Principal amount outstanding 2020	Due in 2021	Due after 2021	Due after 2025	Average remaining term (in years)	Principal amount outstanding 2019
USD notes	2.7%-5.6%		4.2	%	7,650	—	7,650	4,250	5.3	7,400
Revolving Credit Facility (1)	—	%	—	%	—	—	—	—	—	—
Bank borrowings	—	%	—	%	—	—	—	—	—	—
			4.2	%	7,650	—	7,650	4,250	5.3	7,400

(1)We do not have any borrowings under the $1,500 million Revolving Credit Facility as of December 31, 2020 and 2019.

As of December 31, 2020, the following principal amounts of long-term debt are due in the next 5 years:


2021			—
2022			1,000
2023			900
2024			1,000
2025			500
Due after 5 years			4,250
			7,650

As of December 31, 2020, the book value of our outstanding long-term debt was $7,650 million, less debt issuance costs of $33 million and original issuance/debt discount of $8 million.

As of December 31, 2020, we had no aggregate principal amount of variable interest rate indebtedness under our loan agreements. The remaining tenor of unsecured debt is on average 5.3 years.

Accrued interest as of December 31, 2020 is $57 million (December 31, 2019: $52 million).

2020 Financing Activities

2025, 2027 and 2030 Senior Unsecured Notes

On May 1, 2020, NXP B.V., together with NXP USA Inc. and NXP Funding LLC, issued $500 million of 2.7% Senior Unsecured Notes due 2025, $500 million of 3.15% Senior Unsecured Notes due 2027 and $1 billion of 3.4% Senior Unsecured Notes due 2030. NXP used the net proceeds of the offering of these notes to repay in full on September 28, 2020, the $1,350 million aggregate principal amount of outstanding 4.125% Senior Notes due 2021 and the $400 million aggregate principal amount of outstanding 4.625% Senior Notes due 2022.

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, 2020 and December 31, 2019 has been secured by collateral on substantially all of the Company’s assets and of certain of its subsidiaries.

We are in compliance with all covenants under our debt agreements as of December 31, 2020.

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 Cash Convertible Notes matured on December 1, 2019. All of the holders elected to convert their Cash Convertible Notes for settlement on December 2, 2019, and none of the Cash Convertible Notes were repurchased or converted into cash prior to such date.

On December 2, 2019, we repaid the $1,150 million aggregate principal amount of the Cash Convertible Notes using available cash.

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 expired on various dates ranging from March 2, 2020 to May 26, 2020. During the full period the NXP share price was below the conversion price of the warrants, and as such, none of the warrants have been converted. The Warrants are included in diluted earnings per share to the extent the impact is dilutive. As of December 31, 2020, the Warrants were not dilutive.

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases operating

Leases

Operating and finance lease assets relate to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery and installations and other equipment (vehicles and certain office equipment). These leases, except for land leases, have remaining lease terms of 1 to 30 years (land leases 48 to 90 years), some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. As of December 31, 2020, assets recorded under finance leases amounted to $82 million and accumulated depreciation associated with finance leases was $12 million (2019: $82 million and $9 million, respectively). Finance lease liabilities amounted to $24 million as of December 31, 2020 (December 31, 2019: $25 million).

The components of operating lease expense were as follows


	2020		2019

Operating lease cost	65		59

Other information related to operating leases was as follows:

Supplemental cash flows information:
Operating cash flows from operating leases	63		53




Right-of-use assets obtained in exchange for lease obligations 1)	50		279


1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842.

Weighted average remaining lease term	6 years		6 years


Weighted average discount rate:	3	%	3	%

Future minimum lease payments for operating leases as of December 31, 2020 were as follows:


			As of
			December 31, 2020

2021			64
2022			50
2023			44
2024			28
2025			23
Thereafter			47
Total future minimum lease payments			256
Less: imputed interest			(19)
Total			237

Rent expense amounted to $9 million in 2020 compared to $12 million in 2019 (containing as from 2019 only services related to leased assets as well as short-term leases) and $57 million in 2018 (containing all leases of land and buildings and other equipment as well as related services).

Lease liabilities related to operating leases are split between current and non-current:


	As of December 31,
	2020	2019

Other current liabilities	60	62
Other non-current liabilities	177	176
Total	237	238

Operating lease right-of-use assets are $223 million as of December 31, 2020 (December 31, 2019: $226 million) and are included in other non-current assets in the consolidated balance sheet.

Leases finance

Leases

The components of operating lease expense were as follows


	2020		2019

Operating lease cost	65		59

Other information related to operating leases was as follows:

Supplemental cash flows information:
Operating cash flows from operating leases	63		53




Right-of-use assets obtained in exchange for lease obligations 1)	50		279


1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842.

Weighted average remaining lease term	6 years		6 years


Weighted average discount rate:	3	%	3	%

Future minimum lease payments for operating leases as of December 31, 2020 were as follows:


			As of
			December 31, 2020

2021			64
2022			50
2023			44
2024			28
2025			23
Thereafter			47
Total future minimum lease payments			256
Less: imputed interest			(19)
Total			237

Lease liabilities related to operating leases are split between current and non-current:


	As of December 31,
	2020	2019

Other current liabilities	60	62
Other non-current liabilities	177	176
Total	237	238

Operating lease right-of-use assets are $223 million as of December 31, 2020 (December 31, 2019: $226 million) and are included in other non-current assets in the consolidated balance sheet.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments The Company maintains purchase commitments with certain suppliers, primarily for raw materials, semi-finished goods and manufacturing services and for some non-production items. Purchase commitments for inventory materials are generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time-horizon can vary for different suppliers. As of December 31, 2020, the Company had purchase commitments of $372 million, which are due through 2044. 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 $17 million accrued for potential and current legal proceedings pending as of December 31, 2020, compared to $44 million accrued at December 31, 2019 (without reduction for any related insurance reimbursements). The accruals are included in “Other current liabilities” and “Other non-current liabilities”. As of December 31, 2020, the Company’s balance related to insurance reimbursements was $8 million (December 31, 2019: $25 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, 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, 2020, 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 million and $23 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 $15 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 multi-plaintiff Motorola lawsuits are pending in the Circuit Court of Cook County, Illinois. These claims allege a link between working in semiconductor manufacturing clean room facilities and birth defects in 18 individuals. The Motorola suits allege exposures between 1981 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. A portion of any indemnity due to Motorola will be reimbursed to NXP if Motorola receives an indemnification payment from its insurance coverage. Motorola has potential insurance coverage for many of the years indicated above, but with differing types and levels of coverage, self-insurance retention amounts and deductibles. We are in discussions with Motorola and their insurers regarding the availability of applicable insurance coverage for each of the individual cases. Motorola and NXP have denied liability for these alleged injuries based on numerous defenses. 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, 2020, we have recorded $87 million for environmental remediation costs, which are primarily included in other non-current liabilities in the accompanying Consolidated Balance Sheets. 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 and Earnings per Share

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholders' Equity and Earnings per Share

Stockholders’ Equity and Earnings per Share

The share capital of the Company as of December 31, 2020 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.

In October 2018, the board of directors of NXP, as authorized by the annual general meeting of shareholders ("AGM"), approved the repurchase of shares as long as the total number of shares held by NXP in treasury does not exceed 20% (approximately 69 million shares) of the number of shares issued. During the fiscal year-ended December 31, 2019, NXP repurchased 15.9 million shares, for a total of approximately $1.4 billion, and during the year-ended December 31, 2020, NXP repurchased 4.8 million shares, for a total of approximately $0.6 billion. As approved by the board of directors, on November 27, 2019, NXP cancelled some 13.2 million shares and on December 15, 2020, NXP cancelled 26 million shares. As a result, the number of issued NXP shares as per December 31, 2019 is 315,519,638 shares and as per December 31, 2020, the Company has issued and paid up 289,519,638 shares of common stock each having a par value of €0.20 or a nominal stock capital of €58 million (2019: €63 million).

Cash dividends

The following dividends were declared in 2020, 2019 and 2018 under NXP’s quarterly dividend program which was introduced as of the third quarter of 2018:


	2020	2019	2018
Dividends declared (in millions)	420	351	147
Dividends declared (per share)	1.50	1.25	0.50

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 18, “Share-based Compensation”.

Treasury shares

From time to time, last on June 17, 2019, the General Meeting of Shareholders authorizes the Board of Directors to repurchase shares of our common stock. On that basis, for the first time in 2011 and latest effective November 19, 2019, 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:


	2020	2019	2018
Total shares in treasury at beginning of year	34,082,242	35,913,021	3,078,470
Total cost	3,037	3,238	342
Shares acquired under repurchase program	4,828,913	15,865,718	54,376,181
Average price in $ per share	129.7	90.94	92.07
Amount paid	627	1,443	5,006
Shares delivered	3,866,203	4,513,416	4,241,487
Average price in $ per share	94.26	93.55	107.75
Amount received	71	84	39
Shares retired	26,000,000	13,183,081	17,300,143
Total shares in treasury at end of year	9,044,952	34,082,242	35,913,021
Total cost	1,037	3,037	3,238

Shareholder tax on repurchased shares

Under Dutch tax law, the repurchase of a company’s shares by an entity in the Netherlands is a taxable event (unless exemptions apply). 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.

The computation of earnings per share (EPS) is presented in the following table:


	2020	2019	2018
Net income (loss)	80	272	2,258
Less: Net income (loss) attributable to non-controlling interests	28	29	50
Net income (loss) attributable to stockholders	52	243	2,208

Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)	279,763	282,056	325,781
Plus incremental shares from assumed conversion of:
Options 1)	526	776	1,145
Restricted Share Units, Performance Share Units and Equity Rights 2)	3,520	3,079	1,680
Dilutive potential common share	4,046	3,855	2,825
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1)	283,809	285,911	328,606

EPS attributable to stockholders in $:
Basic net income (loss)	0.19	0.86	6.78
Diluted net income (loss)	0.18	0.85	6.72

1)No stock options to purchase shares of NXP’s common stock that were outstanding in 2020 (2019: 0.1 million shares; 2018: 0.1 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 0.6 million shares that were outstanding in 2020 (2019: 0.7 million shares; 2018: 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.

Share-based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-based Compensation

Share-based compensation expense is included in the following line items in our statement of operations:


	2020	2019	2018
Cost of revenue	45	42	40
Research and development	159	141	133
Selling, general and administrative	180	163	141
	384	346	314

The income tax (expense) benefit recognized in net income related to share-based compensation expenses was $32 million (includes $10 million of excess tax benefits), $27 million (includes $3 million of excess tax benefits) and $27 million (includes $4 million of excess tax benefits) for the years ended December 31, 2020, 2019 and 2018, 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 October 27, 2020, 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 $167.64 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 resulting from a significant reduction in either the nature or scope of duties and responsibilities, a reduction in compensation or a required relocation. The number of shares authorized and available for awards at December 31, 2020 was 26.1 million.

A charge of $376 million was recorded in 2020 for the LTIP (2019: $339 million; 2018: $307 million).

A summary of the activity for our LTIP’s during 2020 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 5.98 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 did not have sufficient historical exercise data at the grant date of the options;

•a risk-free interest rate varying from 1.2% to 1.9% (2019: 1.0% to 1.9%; 2018: 0.8% to 2.1%);

•no expected dividend payments; and

•a volatility of 42 – 45% based on the volatility of a set of peer companies. Peer company data was used given the short period of time our shares had been publicly traded.

Above assumptions were valid at the moment NXP granted the options. Changes in the assumptions can materially affect the fair value estimate.


	Stock options	Weighted average exercise price in USD	Weighted average remaining contractual term	Aggregate intrinsic value
Outstanding at January 1, 2020	1,202,909	52.08
Granted	—	—
Exercised	547,174	47.77
Forfeited	11,401	35.53
Outstanding at December 31, 2020	644,334	56.03	3.46	66
Exercisable at December 31, 2020	644,334	56.03	3.46	66

No options were granted in 2020, 2019 and 2018.

The intrinsic value of the exercised options was $45 million (2019: $48 million; 2018: $59 million), whereas the amount received by NXP was $26 million (2019: $45 million; 2018: $30 million). The tax benefit realized from stock options exercised during fiscal 2020, 2019, and 2018 was $33 million, $31 million, and $34 million, respectively.

At December 31, 2020, there were no (2019: none) unrecognized compensation cost related to non-vested stock options.

Performance share units

Financial performance conditions


	Shares	Weighted average grant date fair value in USD
Outstanding at January 1, 2020	195,098	75.60
Granted	—	—
Vested	—	—
Forfeited	195,098	75.60
Outstanding at December 31, 2020	—	—

Market performance conditions


	Shares	Weighted average grant date fair value in USD
Outstanding at January 1, 2020	1,844,187	125.61
Granted	335,567	164.92
Vested	—	—
Forfeited	48,060	125.28
Outstanding at December 31, 2020	2,131,694	131.81

In 2020, the weighted average grant date fair value of performance share units granted was $164.92 (2019: $141.64; 2018: $121.18).

No performance share units vested in 2020 (the fair value of the performance share units at the time of vesting in 2019: none ; 2018: $6 million).

At December 31, 2020, there was a total of $89 million (2019: $135 million; 2018: $143 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 2.0 years (2019: 2.0 years; 2018: 2.6 years).

Restricted share units


	Shares	Weighted average grant date fair value in USD
Outstanding at January 1, 2020	6,006,591	102.20
Granted	2,616,364	129.05
Vested	2,863,408	102.73
Forfeited	366,861	103.86
Outstanding at December 31, 2020	5,392,686	114.83

The weighted average grant date fair value of restricted share units granted in 2020 was $129.05 (2019: $111.62; 2018: $84.77). The fair value of the restricted share units at the time of vesting was $372 million (2019: $325 million; 2018: $263 million).

At December 31, 2020, there was a total of $502 million (2019: $501 million; 2018: $484 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 (2019: 1.5 years; 2018: 1.5 years).

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

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)	Accumulated Other Comprehensive Income (loss)
As of December 31, 2018	218	(3)	(92)	123
Other comprehensive income (loss) before reclassifications	(15)	(6)	(54)	(75)
Amounts reclassified out of accumulated other comprehensive income (loss)	—	13	—	13
Income tax effects	—	(2)	16	14
Other comprehensive income (loss)	(15)	5	(38)	(48)
As of December 31, 2019	203	2	(130)	75
Other comprehensive income (loss) before reclassifications	78	15	(63)	30
Amounts reclassified out of accumulated other comprehensive income (loss)	—	(4)	—	(4)
Income tax effects	—	(2)	18	16
Other comprehensive income (loss)	78	9	(45)	42
As of December 31, 2020	281	11	(175)	117

Related-party Transactions

12 Months Ended

Dec. 31, 2020

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.

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:


	2020	2019	2018
Revenue and other income	54	82	133
Purchase of goods and services	36	64	106

The following table presents the amounts related to receivable and payable balances with these related parties:


	2020	2019
Receivables	3	21
Payables	7	9

Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

The following table summarizes the estimated fair value of our financial instruments which are measured at fair value on a recurring basis:


		Estimated fair value
	Fair value hierarchy	December 31, 2020	December 31, 2019
Assets:
Money market funds	1	1,469	6
Marketable equity securities	1	19	1
Derivative instruments-assets	2	18	10

Liabilities:
Derivative instruments-liabilities	2	—	(1)

The following methods and assumptions were used to estimate the fair value of financial instruments:

Assets and liabilities measured at fair value on a recurring basis

Investments in money market funds (as part of our cash and cash equivalents) and marketable equity securities (as part of other non-current assets) have fair value measurements which are all based on quoted prices in active markets for identical assets or liabilities. For derivatives (as part of other current assets or accrued liabilities) the fair value is based upon significant other observable inputs depending on the nature of the derivative.

Assets and liabilities recorded at fair value on a non-recurring basis

We measure and record our non-marketable equity securities, equity method investments and non-financial assets, such as intangible assets and property, plant and equipment, at fair value when an impairment charge is required.

Assets and liabilities not recorded at fair value on a recurring basis

Financial instruments not recorded at fair value on a recurring basis include non-marketable equity securities and equity method investments that have not been remeasured or impaired in the current period and debt.

As of December 31, 2020, the estimated fair value of debt, including the current portion, was $8.6 billion ($7.9 billion as of December 31, 2019). The fair value is estimated on the basis of broker-dealer quotes, which are Level 2 inputs. Accrued interest is included under accrued liabilities and not within the carrying amount or estimated fair value of debt.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Segments and Geographical Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segments and Geographical Information

As discussed in Note 1, we changed our reporting segments to better align with our organizational structure and with the way our chief operating decision maker makes operating decisions, allocates resources, and manages the growth and profitability of the business.

Revenue attributed to geographic areas is based on the customer’s shipped-to location. Long-lived assets include Property and equipment, net, which were based on the physical location of the assets as of the end of each year.

Geographical Information


	Revenue			Property, plant and equipment, net
	2020	2019	2018	2020	2019	2018
China	3,324	3,147	3,430	257	265	287
Netherlands	222	275	349	212	221	214
United States	750	840	919	766	845	782
Singapore	1,064	1,006	1,220	304	321	298
Germany	483	526	531	51	52	55
Japan	647	780	735	—	—	—
South Korea	327	327	357	—	—	—
Malaysia	95	120	112	288	337	373
Other countries	1,700	1,856	1,754	406	407	427
	8,612	8,877	9,407	2,284	2,448	2,436

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Segment reporting

Prior to January 1, 2019, HPMS was our sole reportable segment. Corporate and Other represented the remaining portion to reconcile to the Consolidated Financial Statements. Effective January 1, 2019, NXP removed the reference to HPMS in its organizational structure in acknowledgment of the one reportable segment representing the entity as a whole and reflects the way in which our chief operating decision maker executes operating decisions, allocates resources, and manages the growth and profitability of the Company.

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.

Revenue recognition

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

Inventories

Property, plant and equipment

Leases

–It conveys the right to control the use of an identified asset for a period of time in exchange for consideration;

–We have substantially all economic benefits from the use of the asset; and

–We can direct the use of the identified asset

With the exception of five instances (with a combined value of $70 million), the Company’s lease arrangements are all operating leases.

Equity investments

NXP’s equity investments include equity method investments, marketable equity investments and non-marketable equity investments.

Business combinations

Goodwill

Identified intangible assets

Impairment or disposal of identified long-lived assets

Fair value measurements

•Level 1: Quoted prices for identical assets or liabilities in active markets.

•Level 3: Significant inputs to the valuation model are unobservable.

Foreign currencies

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
Year-ended December 31, 2020	1.2280	1.1412	1.0862	1.2280
Year-ended December 31, 2019	1.1217	1.1210	1.0935	1.1476
Year-ended December 31, 2018	1.1451	1.1794	1.1352	1.2431

(1) The average of the noon-buying rate at the end of each fiscal month during the period presented.

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.

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.

Dividends to shareholders

Dividends to the Company’s shareholders are charged to retained earnings when the dividends are approved.

Stock repurchases and retirement

Research and development

Advertising

Advertising costs are expensed when incurred.

Debt issuance costs

Restructuring

Other income (expense)

Financing income and expense

Financial income and expense

Income taxes

Postretirement benefits

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.

For all the Company’s postretirement benefit plans, the measurement date is December 31, our year-end.

Share-based compensation

Earnings per share

Concentration of risk

Credit exposure related to NXP’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts.

The Company is using outside suppliers or foundries for a portion of its manufacturing capacity.

Accounting standards adopted in 2020

for us on January 1, 2020, and has been adopted prospectively. The adoption of this update did not have a material impact on the Company's consolidated financial statements and related disclosures.

No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Exchange Rates Used Table

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
Year-ended December 31, 2020	1.2280	1.1412	1.0862	1.2280
Year-ended December 31, 2019	1.1217	1.1210	1.0935	1.1476
Year-ended December 31, 2018	1.1451	1.1794	1.1352	1.2431

(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 for the years ended December 31, 2020 and December 31, 2019 were as follows:


	2020	2019
Euro	532	579
Chinese renminbi	150	90
Great British pound	34	22
Japanese yen	21	29
Malaysian ringgit	122	138
Singapore dollar	65	49
Swiss franc	29	28
Taiwan dollar	159	103
Thai baht	104	69
Other	48	41

Acquisitions and Divestments (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed

The fair values of the assets acquired and liabilities assumed in the acquisition, by major class, were recognized as follows:


Tangible fixed assets			2
Inventory			50
Identified intangible assets			514
Goodwill			1,138
Deferred tax assets			1
Net assets acquired			1,705

Summary of Intangible Assets Recognized

The identified intangible assets assumed were recognized as follows:


	Fair Value	Weighted Average Estimated Useful Life (in Years)
Customer relationships (included in customer-related)	20	6
Developed technology (included in technology-based)	324	4.4
In-process research and development (1)	170	N/A
Total identified intangible assets	514

Summary of Pro Forma Financial Information


	2019	2018
Revenue	9,169	9,715
Net income (loss) attributable to stockholders	237	2,154
Net income (loss) per common share attributable to stockholders:
–Basic	0.84	6.61
–Diluted	0.83	6.55

Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Assets Held for Sale

The following table summarizes the carrying value of the VAS assets held for sale:


			December 31, 2019
Inventories			8
Identified intangible assets, net			1
Goodwill			41
Assets held for sale			50

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Disaggregation of Revenue

The following table presents revenue disaggregated by sales channel:


	2020	2019	2018
Distributors	4,720	4,409	4,891
Original Equipment Manufacturers and Electronic Manufacturing Services	3,728	4,352	4,229
Other 1)	164	116	287
Total	8,612	8,877	9,407

1)Prior year information has been reclassified to align with NXP's current year presentation.

Schedule of Depreciation, Amortization and Impairment

Depreciation and amortization, including impairment charges, are as follows:


	2020	2019	2018
Depreciation of property, plant and equipment	547	518	478
Amortization of internal use software	6	8	8
Amortization of other identified intangible assets (*)	1,435	1,521	1,501
	1,988	2,047	1,987

(*) For the period ending December 31, 2020, the amount includes an impairment relative to IPR&D acquired as part of the acquisition of Freescale for an amount of $36 million.

Schedule of Other Income (Expense)

The following table presents the split of other income (expense):


	2020	2019	2018
Result from MSA and TSA arrangements	—	—	—
Other, net	114	25	2,001
Total	114	25	2,001

Schedule of Financial Income and Expense


	2020	2019	2018
Interest income	13	57	48
Interest expense	(362)	(370)	(273)
Total interest expense, net	(349)	(313)	(225)
Net gain (loss) on extinguishment of debt	(60)	(11)	(26)
Foreign exchange rate results	(16)	(15)	(14)
Miscellaneous financing income (expense) and other, net (*)	8	(11)	(70)
Total other financial income (expense)	(68)	(37)	(110)
Total	(417)	(350)	(335)

Marketable Securities

At December 31, 2020 and December 31, 2019, the total carrying value of investments in equity securities is summarized as follows:


	2020	2019
Marketable equity securities	19	1
Non-marketable equity securities	40	25
Equity-accounted investments	61	11
	120	37

Summary of Carrying Value of Investments in Equity-Accounted Investees

The total carrying value of investments in equity-accounted investees is summarized as follows:


	2020			2019
	Shareholding %		Amount	Shareholding %	Amount
Wise Road Industry Investment Fund I, L.P.	10.17	%	29	—	—
Others	—		32	—	11
			61		11

Results Relating to Equity-Accounted Investees

Results related to equity-accounted investees at the end of each period were as follows:


	2020	2019	2018
Company’s share in income (loss)	(4)	(2)	7
Other results	—	3	52
	(4)	1	59

Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges

The following table presents the changes in the position of restructuring liabilities in 2020:


	Balance January 1, 2020	Additions	Utilized	Released	Other changes(1)	Balance December 31, 2020
Restructuring liabilities	32	77	(36)	—	1	74

(1) Other changes primarily related to translation differences and internal transfers.

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 2019:


	Balance January 1, 2019	Additions	Utilized	Released	Other changes(1)	Balance December 31, 2019
Restructuring liabilities	65	29	(57)	(4)	(1)	32

(1) Other changes primarily related to translation differences and internal transfers.

The total restructuring liability as of December 31, 2019 of $32 million is classified in the Consolidated Balance Sheets under current liabilities.

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 recorded in 2020, 2019 and 2018 are as follows:


	2020	2019	2018
Personnel lay-off costs	78	32	4
Other exit costs	—	—	2
Release of provisions/accruals	—	(4)	—
Net restructuring charges	78	28	6

The restructuring charges recorded in operating income are included in the following line items in the statement of operations:


	2020	2019	2018
Cost of revenue	15	3	—
Research & development	39	16	—
Selling, general and administrative	24	9	7
Other (income) expense	—	—	(1)
Net restructuring charges	78	28	6

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

he components of income (loss) before income taxes are as follows:


	2020	2019	2018
Netherlands	447	429	2,570
Foreign	(446)	(138)	(195)
	1	291	2,375

Components of Benefit (Expense) for Income Taxes

The components of income tax benefit (expense) are as follows:


	2020	2019	2018
Current taxes:
Netherlands	(147)	(90)	(296)
Foreign	(119)	(105)	(91)
	(266)	(195)	(387)
Deferred taxes:
Netherlands	58	(28)	2
Foreign	291	203	209
	349	175	211
Total income tax benefit (expense)	83	(20)	(176)

Reconciliation of Statutory Income Tax Rate

A reconciliation of the statutory income tax rate in the Netherlands as a percentage of income (loss) before income taxes and the effective income tax rate is as follows:


	2020		2019		2018
	amount	%	amount	%	amount	%
Statutory income tax rate in the Netherlands	—	25.0	73	25.0	594	25.0

Rate differential between the local statutory rates and the statutory rate of the Netherlands	22	2,175.0	16	5.5	19	0.8
Net change in valuation allowance	35	3,500.0	59	20.2	10	0.4
Non-deductible expenses/losses	61	6,100.0	52	17.8	64	2.7
Netherlands tax incentives	(48)	(4,800.0)	(68)	(23.2)	(252)	(10.6)
Foreign tax incentives	(117)	(11,700.0)	(118)	(40.5)	(119)	(5.0)
Changes in estimates of prior years' income taxes	(13)	(1,300.0)	(3)	(1.2)	(83)	(3.5)
Sale of non-deductible goodwill	10	1,000.0	—	—	—	—
Withholding taxes	(31)	(3,100.0)	5	1.8	(12)	(0.6)
Other differences	(2)	(200.0)	4	1.5	(45)	(1.8)
Effective tax rate	(83)	(8,300.0)	20	6.9	176	7.4

Principal Components of Deferred Tax Assets and Liabilities

The principal components of deferred tax assets and liabilities are presented below:


	2020	2019
Operating loss and tax credit carry forwards	480	499
Disallowed interest carry forwards	69	103
Other accrued liabilities	107	111
Pensions	121	95
Other non-current liabilities	58	53
Share-based compensation	13	15
Restructuring liabilities	15	5
Receivables	55	64
Inventories	8	4
Total Deferred Tax Assets	926	949
Valuation allowance	(227)	(190)
Total Deferred Tax Assets, net of valuation allowance	699	759

Identified intangible assets, net	(116)	(520)
Undistributed earnings of foreign subsidiaries	(54)	(99)
Property, plant and equipment, net	(15)	(34)
Goodwill	(66)	(43)
Other current and non-current assets	(56)	(52)
Total Deferred Tax Liabilities	(307)	(748)
Net Deferred Tax Position	392	11

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:


	2020	2019
Deferred tax assets within other non-current assets	477	293
Deferred tax liabilities within non-current liabilities	(85)	(282)
	392	11

Expiration of Tax Loss Carryforwards

At December 31, 2020 tax loss carryforwards of $737 million (inclusive of $162 million of U.S. state tax losses) will expire as follows:


	Balance	Scheduled expiration
	December 31,
	2020	2021	2022	2023	2024	2025	2026-2030	later	unlimited
Tax loss carryforwards	737	—	12	2	3	81	160	70	409

This overview is excluding disallowed interest carryforwards of $276 million which have an unlimited expiration date.

Expiration of Tax Credit Carryforwards

The Company also has tax credit carryforwards of $468 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,
	2020	2021	2022	2023	2024	2025	2026-2030	later	unlimited
Tax credit carryforwards	468	1	11	10	11	18	71	294	52

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits excluding interest and penalties is as follows:


	2020	2019	2018
Balance as of January 1,	159	165	177
Translation differences	—	(1)	(4)
Lapse of statute of limitations	(4)	(3)	—
Increases from tax positions taken during prior periods	5	4	7
Decreases from tax positions taken during prior periods	—	(4)	(17)
Increases from tax positions taken during current period	7	7	7
Decreases relating to settlements with the tax authorities	(6)	(9)	(5)
Balance as of December 31,	161	159	165

Accounts Receivable, net (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Accounts Receivable, net

Accounts receivable, net are summarized as follows:


	2020	2019
Accounts receivable from third parties	767	669
Allowance for credit loss	(2)	(2)
	765	667

Summary of Accounts Receivable, Net Disaggregated By Sales Channel

The following table presents accounts receivable, net disaggregated by sales channel:


	2020	2019
Distributors	186	80
Original Equipment Manufacturers and Electronic Manufacturing Services	533	536
Other	46	51
	765	667

Inventories, net (Tables)

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories, Net

Inventories are summarized as follows:


	2020	2019
Raw materials	66	52
Work in process	786	894
Finished goods	178	246
	1,030	1,192

Property, Plant and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020	2019
Land		165	164
Buildings	9 to 50	1,425	1,359
Machinery and installations	2 to 10	3,970	3,749
Other Equipment	1 to 5	751	665
Prepayments and construction in progress		210	253
		6,521	6,190
Less accumulated depreciation		(4,237)	(3,742)
Property, plant and equipment, net of accumulated depreciation		2,284	2,448

Identified Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Identified Intangible Assets

The changes in identified intangible assets were as follows:


			Total
Balance as of January 1, 2019
Cost			9,183
Accumulated amortization/impairment			(4,716)
Book value			4,467
Changes in book value:
Acquisitions/additions			683
Transfer to assets held for sale			(1)
Amortization			(1,529)
Total changes			(847)
Balance as of December 31, 2019
Cost			9,384
Accumulated amortization/impairment			(5,764)
Book value			3,620
Changes in book value:
Acquisitions/additions			63
Transfer to assets held for sale			—
Amortization			(1,398)
Impairment			(43)
Translation differences			—
Total changes			(1,378)
Balance as of December 31, 2020
Cost			9,249
Accumulated amortization/impairment			(7,007)
Book value			2,242

Schedule of Identified Intangible Assets

Identified intangible assets as of December 31, 2020 and 2019 respectively were composed of the following:


	December 31, 2020		December 31, 2019
	Gross carrying amount	Accumulated amortization	Gross carrying amount	Accumulated amortization
IPR&D(1)	147	—	272	—
Marketing-related	81	(81)	81	(67)
Customer-related	957	(381)	968	(340)
Technology-based	8,064	(6,545)	8,063	(5,357)
Identified intangible assets	9,249	(7,007)	9,384	(5,764)

(1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort.

Schedule of Estimated Amortization Expense

The estimated amortization expense for these identified intangible assets for each of the five succeeding years is:


2021			675
2022			572
2023			340
2024			157
2025			106
Thereafter			392

Goodwill (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

The changes in goodwill in 2020 and 2019 were as follows:


	2020	2019
Balances as of January 1
Cost	10,063	8,971
Accumulated impairment	(114)	(114)
Book value	9,949	8,857
Changes in book value:
Acquisitions	3	1,138
Transfer to assets held for sale	—	(41)
Translation differences	32	(5)
Total changes	35	1,092
Balances as of December 31
Cost - Balance	10,098	10,063
Accumulated impairment - Balance	(114)	(114)
Book value - Balance	9,984	9,949

Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Summary of PME Multi-Employer Plan


PME multi-employer plan	2020	2019	2018
NXP’s contributions to the plan	33	31	34
(including employees’ contributions)	4	4	4
Average number of NXP’s active employees participating in the plan	2,048	2,129	2,183
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


	2020	2019
Projected benefit obligation
Projected benefit obligation at beginning of year	665	617
Service cost	17	14
Interest cost	7	12
Actuarial (gains) and losses	65	50
Curtailments and settlements	—	—
Benefits paid	(22)	(23)
Exchange rate differences	58	(5)
Projected benefit obligation at end of year	790	665
Plan assets
Fair value of plan assets at beginning of year	203	201
Actual return on plan assets	5	5
Employer contributions	22	22
Curtailments and settlements	—	—
Benefits paid	(22)	(23)
Exchange rate differences	16	(2)
Fair value of plan assets at end of year	224	203
Funded status	(566)	(462)
Classification of the funded status is as follows
– Accrued pension cost within other non-current liabilities	(554)	(452)
– Accrued pension cost within accrued liabilities	(12)	(10)
Total	(566)	(462)
Accumulated benefit obligation
Accumulated benefit obligation for all Company-dedicated benefit pension plans	755	621
Plans with assets less than accumulated benefit obligation (including unfunded plans)
– Fair value of plan assets	220	198
– Accumulated benefit obligations	750	617
Amounts recognized in accumulated other comprehensive income (before tax)
Total AOCI at beginning of year	140	94
– Net actuarial loss (gain)	58	47
– Exchange rate differences	16	(1)
Total AOCI at end of year	214	140

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:


	2020		2019
Discount rate	0.8	%	1.2	%
Rate of compensation increase	1.6	%	1.5	%

The weighted average assumptions used to calculate the net periodic pension cost were as follows:


	2020		2019		2018
Discount rate	1.2	%	2.0	%	1.9	%
Expected returns on plan assets	2.6	%	2.7	%	3.0	%
Rate of compensation increase	1.5	%	1.8	%	1.8	%

Components of Net Periodic Pension Costs

The components of net periodic pension costs were as follows:


	2020	2019	2018
Service cost	17	14	16
Interest cost on the projected benefit obligation	7	12	12
Expected return on plan assets	(5)	(6)	(6)
Amortization of net (gain) loss	8	4	4
Curtailments & settlements	—	—	—
Net periodic cost	27	24	26

Summary of Actual Pension Plan Assets Allocation and Classification

The actual pension plan asset allocation at December 31, 2020 and 2019 is as follows:


	2020		2019
Asset category:
Equity securities	34	%	31	%
Debt securities	39	%	43	%
Insurance contracts	7	%	7	%
Other	20	%	19	%
	100	%	100	%

The following table summarizes the classification of these assets.


	2020			2019
	Level I	Level II	Level III	Level I	Level II	Level III
Equity securities	—	71	—	—	59	—
Debt securities	8	62	—	11	62	—
Insurance contracts	—	15	—	—	14	—
Other	—	21	18	2	18	14
	8	169	18	13	153	14

Summary of Estimated Future Pension Benefit Payments

The following benefit payments are expected to be made (including those for funded plans):


2021			24
2022			24
2023			26
2024			28
2025			28
Years 2026-2030			170

- Definition

Tabular disclosure of information about multiemployer plan.

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+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Outstanding Debt

The following table summarizes the outstanding long-term debt as of December 31, 2020 and 2019:


	2020			2019
	Maturities	Amount	Effective rate	Amount	Effective rate
Fixed-rate 4.125% senior unsecured notes	Jun, 2021	—	4.125	1,350	4.125
Fixed-rate 4.625% senior unsecured notes	Jun, 2022	—	4.625	400	4.625
Fixed-rate 3.875% senior unsecured notes	Sep, 2022	1,000	3.875	1,000	3.875
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	1,000	4.875
Fixed-rate 2.7% senior unsecured notes	May, 2025	500	2.700	—	—
Fixed-rate 5.35% senior unsecured notes	Mar, 2026	500	5.350	500	5.350
Fixed-rate 3.875% senior unsecured notes	Jun, 2026	750	3.875	750	3.875
Fixed-rate 3.15% senior unsecured notes	May, 2027	500	3.150	—	—
Fixed-rate 5.55% senior unsecured notes	Dec, 2028	500	5.550	500	5.550
Fixed-rate 4.3% senior unsecured notes	Jun, 2029	1,000	4.300	1,000	4.300
Fixed-rate 3.4% senior unsecured notes	May, 2030	1,000	3.400	—	—
Floating-rate revolving credit facility (RCF)	Jun, 2024	—	—	—	—
Total principal		7,650		7,400
Unamortized discounts, premiums and debt issuance costs		(41)		(35)
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments		7,609		7,365
Current portion of long-term debt		—		—
Long-term debt		7,609		7,365

Schedule of Long-Term Debt


	Range of interest rates		Average rate of interest		Principal amount outstanding 2020	Due in 2021	Due after 2021	Due after 2025	Average remaining term (in years)	Principal amount outstanding 2019
USD notes	2.7%-5.6%		4.2	%	7,650	—	7,650	4,250	5.3	7,400
Revolving Credit Facility (1)	—	%	—	%	—	—	—	—	—	—
Bank borrowings	—	%	—	%	—	—	—	—	—	—
			4.2	%	7,650	—	7,650	4,250	5.3	7,400

(1)We do not have any borrowings under the $1,500 million Revolving Credit Facility as of December 31, 2020 and 2019.

Principal Amounts of Long-Term Debt

As of December 31, 2020, the following principal amounts of long-term debt are due in the next 5 years:


2021			—
2022			1,000
2023			900
2024			1,000
2025			500
Due after 5 years			4,250
			7,650

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of Lease Costs and Other Information

The components of operating lease expense were as follows


	2020		2019

Operating lease cost	65		59

Other information related to operating leases was as follows:

Supplemental cash flows information:
Operating cash flows from operating leases	63		53




Right-of-use assets obtained in exchange for lease obligations 1)	50		279


1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842.

Weighted average remaining lease term	6 years		6 years


Weighted average discount rate:	3	%	3	%

Schedule of Future Minimum Operating Lease Payments

Future minimum lease payments for operating leases as of December 31, 2020 were as follows:


			As of
			December 31, 2020

2021			64
2022			50
2023			44
2024			28
2025			23
Thereafter			47
Total future minimum lease payments			256
Less: imputed interest			(19)
Total			237

Schedule of Lease Liabilities

Lease liabilities related to operating leases are split between current and non-current:


	As of December 31,
	2020	2019

Other current liabilities	60	62
Other non-current liabilities	177	176
Total	237	238

Stockholders' Equity and Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Schedule of Cash Dividends

The following dividends were declared in 2020, 2019 and 2018 under NXP’s quarterly dividend program which was introduced as of the third quarter of 2018:


	2020	2019	2018
Dividends declared (in millions)	420	351	147
Dividends declared (per share)	1.50	1.25	0.50

Schedule of Transactions from Employee Option and Share Plans

The following transactions took place resulting from employee option and share plans:


	2020	2019	2018
Total shares in treasury at beginning of year	34,082,242	35,913,021	3,078,470
Total cost	3,037	3,238	342
Shares acquired under repurchase program	4,828,913	15,865,718	54,376,181
Average price in $ per share	129.7	90.94	92.07
Amount paid	627	1,443	5,006
Shares delivered	3,866,203	4,513,416	4,241,487
Average price in $ per share	94.26	93.55	107.75
Amount received	71	84	39
Shares retired	26,000,000	13,183,081	17,300,143
Total shares in treasury at end of year	9,044,952	34,082,242	35,913,021
Total cost	1,037	3,037	3,238

Computation of Earnings per Share (EPS)

The computation of earnings per share (EPS) is presented in the following table:


	2020	2019	2018
Net income (loss)	80	272	2,258
Less: Net income (loss) attributable to non-controlling interests	28	29	50
Net income (loss) attributable to stockholders	52	243	2,208

Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)	279,763	282,056	325,781
Plus incremental shares from assumed conversion of:
Options 1)	526	776	1,145
Restricted Share Units, Performance Share Units and Equity Rights 2)	3,520	3,079	1,680
Dilutive potential common share	4,046	3,855	2,825
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1)	283,809	285,911	328,606

EPS attributable to stockholders in $:
Basic net income (loss)	0.19	0.86	6.78
Diluted net income (loss)	0.18	0.85	6.72

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Share-Based Compensation Expense

Share-based compensation expense is included in the following line items in our statement of operations:


	2020	2019	2018
Cost of revenue	45	42	40
Research and development	159	141	133
Selling, general and administrative	180	163	141
	384	346	314

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, 2020	1,202,909	52.08
Granted	—	—
Exercised	547,174	47.77
Forfeited	11,401	35.53
Outstanding at December 31, 2020	644,334	56.03	3.46	66
Exercisable at December 31, 2020	644,334	56.03	3.46	66

Summary of Performance Share Units

Financial performance conditions


	Shares	Weighted average grant date fair value in USD
Outstanding at January 1, 2020	195,098	75.60
Granted	—	—
Vested	—	—
Forfeited	195,098	75.60
Outstanding at December 31, 2020	—	—

Market performance conditions


	Shares	Weighted average grant date fair value in USD
Outstanding at January 1, 2020	1,844,187	125.61
Granted	335,567	164.92
Vested	—	—
Forfeited	48,060	125.28
Outstanding at December 31, 2020	2,131,694	131.81

Summary of Restricted Share Units


	Shares	Weighted average grant date fair value in USD
Outstanding at January 1, 2020	6,006,591	102.20
Granted	2,616,364	129.05
Vested	2,863,408	102.73
Forfeited	366,861	103.86
Outstanding at December 31, 2020	5,392,686	114.83

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2020

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)	Accumulated Other Comprehensive Income (loss)
As of December 31, 2018	218	(3)	(92)	123
Other comprehensive income (loss) before reclassifications	(15)	(6)	(54)	(75)
Amounts reclassified out of accumulated other comprehensive income (loss)	—	13	—	13
Income tax effects	—	(2)	16	14
Other comprehensive income (loss)	(15)	5	(38)	(48)
As of December 31, 2019	203	2	(130)	75
Other comprehensive income (loss) before reclassifications	78	15	(63)	30
Amounts reclassified out of accumulated other comprehensive income (loss)	—	(4)	—	(4)
Income tax effects	—	(2)	18	16
Other comprehensive income (loss)	78	9	(45)	42
As of December 31, 2020	281	11	(175)	117

Related-party Transactions (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Related Party Transactions

The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties:


	2020	2019	2018
Revenue and other income	54	82	133
Purchase of goods and services	36	64	106

Schedule Of Amounts Receivable From And Payable To Related Parties

The following table presents the amounts related to receivable and payable balances with these related parties:


	2020	2019
Receivables	3	21
Payables	7	9

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following table summarizes the estimated fair value of our financial instruments which are measured at fair value on a recurring basis:


		Estimated fair value
	Fair value hierarchy	December 31, 2020	December 31, 2019
Assets:
Money market funds	1	1,469	6
Marketable equity securities	1	19	1
Derivative instruments-assets	2	18	10

Liabilities:
Derivative instruments-liabilities	2	—	(1)

Segments and Geographical Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Geographical Segment Report

Geographical Information


	Revenue			Property, plant and equipment, net
	2020	2019	2018	2020	2019	2018
China	3,324	3,147	3,430	257	265	287
Netherlands	222	275	349	212	221	214
United States	750	840	919	766	845	782
Singapore	1,064	1,006	1,220	304	321	298
Germany	483	526	531	51	52	55
Japan	647	780	735	—	—	—
South Korea	327	327	357	—	—	—
Malaysia	95	120	112	288	337	373
Other countries	1,700	1,856	1,754	406	407	427
	8,612	8,877	9,407	2,284	2,448	2,436

Basis of Presentation and Overview - Narrative (Details)	12 Months Ended
	Dec. 31, 2020 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Significant Accounting Policies - Narrative (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) lease	Dec. 31, 2019 USD ($)	Dec. 31, 2018	Jan. 01, 2019 USD ($)
Significant Accounting Policies [Line Items]
Number of finance lease arrangements \| lease	5
Liabilities arising from capital lease transactions \| $	$ 24	$ 25		$ 70
Minimum employment period for recognizing termination benefits	60 days
Percentage of fair value of plan assets	10.00%
Distributor A \| Revenue Benchmark \| Distributors Concentration Risk
Significant Accounting Policies [Line Items]
Percentage of revenue from a single external customer	17.00%	14.00%	14.00%
Distributor B \| Revenue Benchmark \| Distributors Concentration Risk
Significant Accounting Policies [Line Items]
Percentage of revenue from a single external customer	10.00%	10.00%	10.00%
OEMs \| Revenue Benchmark \| Distributors Concentration Risk
Significant Accounting Policies [Line Items]
Percentage of revenue from a single external customer	10.00%	11.00%	11.00%
Stock Options \| Long Term Incentive Plans
Significant Accounting Policies [Line Items]
Award vesting period	4 years
Restricted Share Units \| Long Term Incentive Plans
Significant Accounting Policies [Line Items]
Award vesting period	3 years

Significant Accounting Policies - Exchange Rates for U.S. Dollars into Euros Applicable for Translation of NXP's Financial Statements (Detail) - € / $	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial Statement Details [Line Items]
Exchange rates for U.S. dollars into euros	1.2280	1.1217	1.1451
average
Financial Statement Details [Line Items]
Exchange rates for U.S. dollars into euros	1.1412	1.1210	1.1794
high
Financial Statement Details [Line Items]
Exchange rates for U.S. dollars into euros	1.0862	1.0935	1.1352
low
Financial Statement Details [Line Items]
Exchange rates for U.S. dollars into euros	1.2280	1.1476	1.2431

Significant Accounting Policies - Gross Notional Amounts of Company's Foreign Currency Derivatives by Currency (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	$ 532	$ 579
Chinese renminbi
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	150	90
Great British pound
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	34	22
Japanese yen
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	21	29
Malaysian ringgit
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	122	138
Singapore dollar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	65	49
Swiss franc
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	29	28
Taiwan dollar
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	159	103
Thai baht
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	104	69
Other
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	$ 48	$ 41

Acquisitions and Divestments - Narrative (Detail) $ in Millions					1 Months Ended	12 Months Ended
	Feb. 03, 2020 USD ($)	Dec. 06, 2019 USD ($)	Mar. 27, 2019 USD ($)	Jul. 10, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2020 USD ($) business	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($) business	Aug. 16, 2019 USD ($)
Business Acquisition [Line Items]
Cash proceeds, net of cash divested						$ 161	$ 37	$ 159
Number of material acquisitions \| business						0		0
WeEn \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Cash proceeds, net of cash divested			$ 37
Voice and Audio Solutions \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Disposal Group, Including Discontinued Operation, Consideration	$ 161								$ 165
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	$ 110
Suzhou ASEN Semiconductors Company Limited
Business Acquisition [Line Items]
Sale of equity interest, percentage				40.00%
Proceeds from sale				$ 127
Net gain realized on sale of equity method investment				$ 51
WeEn
Business Acquisition [Line Items]
Cash proceeds, net of cash divested					$ 32
Sale of equity interest, percentage					24.00%
Marvell
Business Acquisition [Line Items]
Purchase consideration		$ 1,700
Acquisition related transaction costs		$ 5

Acquisitions and Divestments - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 06, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 9,984	$ 9,949		$ 8,857
Marvell
Business Acquisition [Line Items]
Tangible fixed assets			$ 2
Inventory			50
Identified intangible assets			514
Goodwill			1,138
Deferred tax assets			1
Total consideration			$ 1,705

Acquisitions and Divestments - Intangible Assets Acquired (Details) - USD ($) $ in Millions		12 Months Ended
	Dec. 06, 2019	Dec. 31, 2020
Business Acquisition [Line Items]
Weighted Average Estimated Useful Life (in Years)		4 years
Marvell
Business Acquisition [Line Items]
Identified intangible assets	$ 514
Customer-related \| Marvell
Business Acquisition [Line Items]
Identified intangible assets	$ 20
Weighted Average Estimated Useful Life (in Years)	6 years
Technology-based \| Marvell
Business Acquisition [Line Items]
Identified intangible assets	$ 324
Weighted Average Estimated Useful Life (in Years)	4 years 4 months 24 days
In-process R&D (IPR&D) \| Marvell
Business Acquisition [Line Items]
Identified intangible assets	$ 170

Acquisitions and Divestments - Pro Forma Information (Details) - Marvell - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Revenue	$ 9,169	$ 9,715
Net income (loss) attributable to stockholders	$ 237	$ 2,154
Net income (loss) per common share attributable to stockholders:
- Basic (USD per share)	$ 0.84	$ 6.61
- Diluted (USD per share)	$ 0.83	$ 6.55

Assets Held for Sale - Narrative (Details) - USD ($) $ in Millions	Feb. 03, 2020	Aug. 16, 2019
Voice and Audio Solutions \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Consideration	$ 161	$ 165

Assets Held for Sale - Summary of carrying value of assets deld for sale (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 0	$ 50
Voice and Audio Solutions \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventories	8
Identified intangible assets, net	1
Goodwill	41
Assets held for sale	$ 50

- Definition

Amount classified as assets attributable to disposal group held for sale or disposed of, expected to be disposed of within one year or the normal operating cycle, if longer.

+ References + Details

Supplemental Financial Information - Disaggregation of revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 8,612	$ 8,877	$ 9,407
Distributors
Disaggregation of Revenue [Line Items]
Revenue	4,720	4,409	4,891
Original Equipment Manufacturers and Electronic Manufacturing Services
Disaggregation of Revenue [Line Items]
Revenue	3,728	4,352	4,229
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 164	$ 116	$ 287

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Supplemental Financial Information - Depreciation, amortization and impairment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Depreciation of property, plant and equipment	$ 547	$ 518	$ 478
Amortization of internal use software	1,398	1,529
Total	1,988	2,047	1,987
In-process R&D (IPR&D) \| Freescale Semiconductor Ltd
Finite-Lived Intangible Assets [Line Items]
Impairment charges			36
Internal Use Software
Finite-Lived Intangible Assets [Line Items]
Amortization of internal use software	6	8	8
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Amortization of other identified intangible assets	$ 1,435	$ 1,521	$ 1,501

Supplemental Financial Information - Other income (expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Nonrecurring Income (Expense) [Line Items]
Other, net	$ 114	$ 25	$ 2,001
Total	114	25	2,001
Manufacturing Service Arrangements and Transitional Service Arrangements
Other Nonrecurring Income (Expense) [Line Items]
Result from MSA and TSA arrangements	$ 0	$ 0	$ 0

Supplemental Financial Information - Financial income and expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplemental Financial Information [Line Items]
Interest income	$ 13	$ 57	$ 48
Interest expense	(362)	(370)	(273)
Total interest expense, net	(349)	(313)	(225)
Net gain (loss) on extinguishment of debt	(60)	(11)	(26)
Foreign exchange rate results	(16)	(15)	(14)
Miscellaneous financing costs/income, net	8	(11)	(70)
Total other financial income (expense)	(68)	(37)	(110)
Total	$ (417)	(350)	$ (335)
Qualcomm
Supplemental Financial Information [Line Items]
One-time charges on financial instruments for compensation related to purchase agreement		$ 60

Supplemental Financial Information (Details) - Equity investments - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities	$ 19	$ 1
Other Investments	40	25
Equity-accounted investments	61	11
Investments	$ 120	$ 37

Supplemental Financial Information - Summary of carrying value of investments in equity-accounted investees (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Equity-accounted investments	$ 61	$ 11
Wiseroad
Schedule of Equity Method Investments [Line Items]
Shareholding %	10.17%	0.00%
Equity-accounted investments	$ 29	$ 0
Others
Schedule of Equity Method Investments [Line Items]
Shareholding %	0.00%	0.00%
Equity-accounted investments	$ 32	$ 11

Supplemental Financial Information - Results relating to equity-accounted investees (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company’s share in income (loss)	$ (4)	$ (2)	$ 7
Other results	0	3	52
Results relating to equity-accounted investees	$ (4)	$ 1	$ 59

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions	1 Months Ended		12 Months Ended
	Jul. 31, 2018	Jun. 30, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplemental Financial Information [Line Items]
Proceeds from sale of interests in businesses, net of cash divested			$ 161	$ 37	$ 159
Cash and cash equivalents			2,275	1,045
Dividend distribution			420	351	$ 147
Asen
Supplemental Financial Information [Line Items]
Sale of equity interest, percentage	40.00%
Total consideration	$ 127
WeEn
Supplemental Financial Information [Line Items]
Sale of equity interest, percentage		24.00%
Proceeds from sale of interests in businesses, net of cash divested		$ 32
SSMC
Supplemental Financial Information [Line Items]
Cash and cash equivalents			185	188
Dividend distribution			$ 90	$ 0
SSMC \| TSMC
Supplemental Financial Information [Line Items]
Ownership percentage by noncontrolling owners				38.80%

Restructuring Charges - Narrative (Details) $ in Millions	12 Months Ended
Restructuring Charges - Narrative (Details) $ in Millions	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) program	Dec. 31, 2018 USD ($) program
Restructuring and Related Activities [Abstract]
Restructuring and related cost, amount of Program	$ 38
Restructuring programs \| program		0	0
Restructuring liability	74	$ 32	$ 65
Restructuring Reserve, Current	60	32
Restructuring Reserve, Noncurrent	$ 14	$ 0

Restructuring Charges - Change in Restructuring Reserve (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	$ 32	$ 65
Additions	77	29
Utilized	(36)	(57)
Released	0	(4)
Other changes	1	(1)
Restructuring liability, ending balance	$ 74	$ 32

Restructuring Charges - Schedule of Components of Restructuring Charges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	$ 78	$ 28	$ 6
Personnel lay-off costs
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	78	32	4
Other exit costs
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	0	0	2
Release of provisions/accruals
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	$ 0	$ (4)	$ 0

Restructuring Charges - Schedule of Restructuring Charges Recorded in Operating Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	$ 78	$ 28	$ 6
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	15	3	0
Research & development
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	39	16	0
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	24	9	7
Other (income) expense
Restructuring Cost and Reserve [Line Items]
Net restructuring charges	$ 0	$ 0	$ (1)

Income Taxes - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Line Items]
Valuation Allowance, Deferred Tax Asset, Increase, Amount	$ 37	$ 45
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	9
Income (loss) before income taxes	1	291	$ 2,375
Benefit (provision) for income taxes	$ 83	$ (20)	$ (176)
Effective income tax rate reconciliation, percent	(8300.00%)	6.90%	7.40%
Netherlands tax incentives	$ (48)	$ (68)	$ (252)
Sale of non-deductible goodwill	10	0	0
Effective Income Tax Rate Reconciliation Withholding Taxes, Difference	36
Changes in estimates of prior years' income taxes	(13)	(3)	(83)
Tax benefit on liquidation of former investment			45
Foreign income taxes decreases due to impact of tax holiday	$ 11	$ 12	$ 21
Benefit of tax holiday on net income per share (diluted)	$ 0.04	$ 0.04	$ 0.06
Increase in valuation allowance	$ 35
Valuation Allowance, Deferred Tax Asset, Decrease Due To Change In Tax Rates, Amount	6
Tax loss carryforwards	737
Tax credit carryforwards	468
Net income tax payable (receivable) excluding liability for unrecognized tax benefits	117	$ 2
Deferred tax liability recognized in undistributed earnings of foreign subsidiaries	54	99
Undistributed earnings indefinitely reinvested	114
Tax on repatriation of undistributed earnings not recognized as deferred tax liability	11
Total unrecognized tax benefits, if recognized, would impact the effective tax rate	140
Underpayment of tax benefits relates to interest and penalties	4	3	$ 3
Liability for related interest and penalties	13	11	14
Effective Income Tax Rate Reconciliation Withholding Taxes	(31)	5	(12)
United States
Income Tax Disclosure [Line Items]
Tax loss carryforwards	162
Dutch Tax Authorities
Income Tax Disclosure [Line Items]
Netherlands tax incentives	20
Additional income tax benefit of recognized			$ 67
Internal Revenue Service (IRS) [Member]
Income Tax Disclosure [Line Items]
Additional income tax benefit of recognized	$ 20
Qualcomm \| Dutch Tax Authorities
Income Tax Disclosure [Line Items]
Break-up fee received		$ 2,000

Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Netherlands	$ 447	$ 429	$ 2,570
Foreign	(446)	(138)	(195)
Income (loss) before income taxes	$ 1	$ 291	$ 2,375

Income Taxes - Components of Benefit (Expense) for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current taxes:
Netherlands	$ (147)	$ (90)	$ (296)
Foreign	(119)	(105)	(91)
Total current taxes	(266)	(195)	(387)
Deferred taxes:
Netherlands	58	(28)	2
Foreign	291	203	209
Total deferred taxes	349	175	211
Total income tax benefit (expense)	$ 83	$ (20)	$ (176)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Reconciliation of Statutory Income Tax Rate (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
amount
Statutory income tax rate in the Netherlands	$ 0	$ 73	$ 594
Rate differential between the local statutory rates and the statutory rate of the Netherlands	22	16	19
Net change in valuation allowance	35	59	10
Non-deductible expenses/losses	61	52	64
Netherlands tax incentives	(48)	(68)	(252)
Foreign tax incentives	(117)	(118)	(119)
Changes in estimates of prior years' income taxes	(13)	(3)	(83)
Sale of non-deductible goodwill	10	0	0
Effective Income Tax Rate Reconciliation Withholding Taxes	(31)	5	(12)
Other differences	(2)	4	(45)
Effective tax rate	$ (83)	$ 20	$ 176
%
Statutory income tax rate in the Netherlands	25.00%	25.00%	25.00%
Rate differential between the local statutory rates and the statutory rate of the Netherlands	2175.00%	5.50%	0.80%
Net change in valuation allowance	3500.00%	20.20%	0.40%
Non-deductible expenses/losses	6100.00%	17.80%	2.70%
Netherlands tax incentives	(4800.00%)	(23.20%)	(10.60%)
Foreign tax incentives	(11700.00%)	(40.50%)	(5.00%)
Changes in estimates of prior years' income taxes	(1300.00%)	(1.20%)	(3.50%)
Sale of non-deductible goodwill	1000.00%	0.00%	0.00%
Effective Income Tax Rate Withholding Taxes	(3100.00%)	1.80%	(0.60%)
Other differences	(200.00%)	1.50%	(1.80%)
Effective tax rate	(8300.00%)	6.90%	7.40%

Income Taxes - Principal Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Operating loss and tax credit carry forwards	$ 480	$ 499
Disallowed interest carry forwards	69	103
Other accrued liabilities	107	111
Pensions	121	95
Other non-current liabilities	58	53
Share-based compensation	13	15
Restructuring liabilities	15	5
Receivables	55	64
Inventories	8	4
Total Deferred Tax Assets	926	949
Valuation allowance	(227)	(190)
Total Deferred Tax Assets, net of valuation allowance	699	759
Identified intangible assets, net	(116)	(520)
Undistributed earnings of foreign subsidiaries	(54)	(99)
Property, plant and equipment, net	(15)	(34)
Goodwill	(66)	(43)
Other current and non-current assets	(56)	(52)
Total Deferred Tax Liabilities	(307)	(748)
Net Deferred Tax Position	$ 392	$ 11

Income Taxes - Classification of Deferred Tax Assets and Liabilities in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Deferred tax assets within other non-current assets	$ 477	$ 293
Deferred tax liabilities within non-current liabilities	(85)	(282)
Net deferred tax position	$ 392	$ 11

Income Taxes - Expiration of Tax Loss Carryforwards (Detail) $ in Millions	Dec. 31, 2020 USD ($)
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	$ 737
Disallowed interest carryforward	(276)
2020 Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	737
2021 Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	0
2022 Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	12
2023 Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	2
2024 Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	3
2025 Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	81
2026-2030 Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	160
Later Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	70
Unlimited Tax Loss Carryforwards
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards	$ 409

Income Taxes - Expiration of Tax Credit Carryforwards (Detail) $ in Millions	Dec. 31, 2020 USD ($)
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 468
2020 Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	468
2021 Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	1
2022 Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	11
2023 Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	10
2024 Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	11
2025 Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	18
2026-2030 Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	71
Later Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	294
Unlimited Tax Loss Carryforwards
Tax Credit Carryforward [Line Items]
Tax credit carryforwards	$ 52

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Balance as of January 1,	$ 159	$ 165	$ 177
Translation differences	0	(1)	(4)
Lapse of statute of limitations	(4)	(3)	0
Increases from tax positions taken during prior periods	5	4	7
Decreases from tax positions taken during prior periods	0	(4)	(17)
Increases from tax positions taken during current period	7	7	7
Decreases relating to settlements with the tax authorities	(6)	(9)	(5)
Balance as of December 31,	$ 161	$ 159	$ 165

Accounts Receivable, net - Summary (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts receivable from third parties	$ 767	$ 669
Allowance for credit loss	(2)	(2)
Accounts receivable	$ 765	$ 667

Accounts Receivable, net - Summary of Accounts Receivable, Net Disaggregated By Sales Channel (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 765	$ 667
Distributors
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	186	80
Original Equipment Manufacturers and Electronic Manufacturing Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	533	536
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 46	$ 51

Inventories, net - Summary of Inventory (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 66	$ 52
Work in process	786	894
Finished goods	178	246
Inventory, net	$ 1,030	$ 1,192

Inventories, net - Narrative (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Portion of finished goods stored at customer locations under consignment	$ 31	$ 41
Allowance for obsolescence	$ 122	$ 114

Property, Plant and Equipment, net - Summary (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 6,521	$ 6,190
Less accumulated depreciation	(4,237)	(3,742)
Property, plant and equipment, net of accumulated depreciation	2,284	2,448	$ 2,436
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	165	164
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,425	1,359
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life (in years)	9 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life (in years)	50 years
Machinery and installations
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 3,970	3,749
Machinery and installations \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life (in years)	2 years
Machinery and installations \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life (in years)	10 years
Other Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 751	665
Other Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life (in years)	1 year
Other Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life (in years)	5 years
Prepayments and construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 210	$ 253

Property, Plant and Equipment, net - Narrative (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment Gross	$ 6,521	$ 6,190
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment Gross	165	164
Other Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment Gross	$ 751	$ 665

Identified Intangible Assets - Summary of Changes in Identified Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Cost			$ 9,249	$ 9,384	$ 9,183
Accumulated amortization/impairment	$ (5,764)	$ (4,716)
Book value	3,620	4,467	$ 2,242	$ 3,620	$ 4,467
Indefinite-lived Intangible Assets [Roll Forward]
Beginning balance, Book value	3,620	4,467
Changes in book value:
Acquisitions/additions	63	683
Transfer to assets held for sale	0	(1)
Amortization	(1,398)	(1,529)
Impairment	(43)
Translation differences	0
Total changes	(1,378)	(847)
Ending balance, Book value	$ 2,242	$ 3,620

Identified Intangible Assets - Summary of Identified Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Cost	$ 9,249	$ 9,384	$ 9,183
Finite-lived intangible assets, accumulated amortization	(7,007)	(5,764)	$ (4,716)
Marketing-related
Finite-Lived Intangible Assets [Line Items]
Cost	81	81
Finite-lived intangible assets, accumulated amortization	(81)	(67)
Customer-related
Finite-Lived Intangible Assets [Line Items]
Cost	957	968
Finite-lived intangible assets, accumulated amortization	(381)	(340)
Technology-based
Finite-Lived Intangible Assets [Line Items]
Cost	8,064	8,063
Finite-lived intangible assets, accumulated amortization	(6,545)	(5,357)
In-process R&D (IPR&D)
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, gross carrying amount	$ 147	$ 272

Identified Intangible Assets - Schedule of Estimated Amortization Expense (Details) - Other Intangible Assets $ in Millions	Dec. 31, 2020 USD ($)
Finite-Lived Intangible Assets [Line Items]
2021	$ 675
2022	572
2023	340
2024	157
2025	106
Thereafter	$ 392

Identified Intangible Assets - Narrative (Details)	12 Months Ended
Identified Intangible Assets - Narrative (Details)	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Weighted Average Estimated Useful Life (in Years)	4 years

Goodwill - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Cost			$ 10,098	$ 10,063	$ 8,971
Accumulated impairment			(114)	(114)	(114)
Book value	$ 9,949	$ 8,857	$ 9,984	$ 9,949	$ 8,857
Goodwill [Roll Forward]
Beginning balance, book value	9,949	8,857
Changes in book value:
Acquisitions	3	1,138
Transfer to assets held for sale	0	(41)
Translation differences	32	(5)
Total changes	35	1,092
Ending balance, book value	$ 9,984	$ 9,949

Goodwill - Additional Information (Detail) - USD ($)	12 Months Ended
Goodwill - Additional Information (Detail) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charges	$ 0	$ 0

Postretirement Benefit Plans - Narrative (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020 USD ($) company individual	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Amount included in statement of operations		$ 103	$ 98	$ 105
Defined contribution plans		47	47	49
PME multi-employer plans		29	27	30
Total (benefit) cost of defined-benefit plans		$ 27	$ 24	26
Decrease to discount rate		0.40%	0.80%
Pension plan assets		$ 224
Employer contribution to defined-benefit pension plans		9
Unfunded Defined Benefit Pension Plan Expected Future Benefit Payments Next Fiscal Year		10
German and Japanese
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Pension plan assets		195
Other Postretirement Benefits Plan
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Accumulated benefit obligation for all Company-dedicated benefit pension plans		$ 6	$ 9
PME Multiemployer Plan [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Number of companies \| company		1,390
Number of employees participated in plan \| individual		626,000
PME Contribution rate		26.41%
PME Multiemployer Plan [Member] \| Forecast
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
PME Contribution rate	27.59%
Pension Plan
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Underfunded (including unfunded) pension plans		$ (566)	(462)
Pension plan assets		224	203	$ 201
Accumulated benefit obligation for all Company-dedicated benefit pension plans		$ 755	$ 621

Postretirement Benefit Plans - Summary of PME Multi-Employer Plan (Detail) - PME Multiemployer Plan [Member] $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) employee	Dec. 31, 2019 USD ($) employee	Dec. 31, 2018 USD ($) employee
Multiemployer Plans [Line Items]
NXP’s contributions to the plan	$ 33	$ 31	$ 34
Employee contributions	$ 4	$ 4	$ 4
Average number of NXP’s active employees participating in the plan \| employee	2,048	2,129	2,183

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, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan, Roll Forwards [Abstract]
Service cost	$ 17	$ 14	$ 16
Interest cost	7	12	12
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at end of year	224
Pension Plan
Defined Benefit Plan, Roll Forwards [Abstract]
Projected benefit obligation at beginning of year	665	617
Service cost	17	14
Interest cost	7	12
Actuarial (gains) and losses	65	50
Curtailments and settlements	0	0
Benefits paid	(22)	(23)
Exchange rate differences	58	(5)
Projected benefit obligation at end of year	790	665	617
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Defined Benefit Plan, Plan Assets, Amount, Beginning Balance	203	201
Actual return on plan assets	5	5
Employer contributions	22	22
Curtailments and settlements	0	0
Benefits paid	(22)	(23)
Exchange rate differences	16	(2)
Fair value of plan assets at end of year	224	203	201
Funded status	(566)	(462)
Classification of the funded status is as follows
– Accrued pension cost within other non-current liabilities	(554)	(452)
– Accrued pension cost within accrued liabilities	(12)	(10)
Total	(566)	(462)
Accumulated benefit obligation for all Company-dedicated benefit pension plans	755	621
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Total AOCI at beginning of year	140	94
Net actuarial loss (gain)	58	47
Exchange rate differences	16	(1)
Total AOCI at end of year	214	140	$ 94
Funded Plan \| Pension Plan
Plans with assets less than accumulated benefit obligation (including unfunded plans)
Fair value of plan assets	220	198
Accumulated benefit obligations	$ 750	$ 617

Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used to Calculate Projected Benefit Obligations (Detail)	Dec. 31, 2020	Dec. 31, 2019
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]
Discount rate	0.80%	1.20%
Rate of compensation increase	1.60%	1.50%

Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used Calculate Net Periodic Pension Cost (Detail)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]
Discount rate	1.20%	2.00%	1.90%
Expected returns on plan assets	2.60%	2.70%	3.00%
Rate of compensation increase	1.50%	1.80%	1.80%

Postretirement Benefit Plans - Components of Net Periodic Pension Costs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]
Service cost	$ 17	$ 14	$ 16
Interest cost on the projected benefit obligation	7	12	12
Expected return on plan assets	(5)	(6)	(6)
Amortization of net (gain) loss	8	4	4
Curtailments & settlements	0	0	0
Net periodic cost	$ 27	$ 24	$ 26

Postretirement Benefit Plans - Summary of Actual Pension Plan Asset Allocation (Detail)	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Plan Assets, Allocation [Line Items]
Actual benefit plan asset allocation	100.00%	100.00%
Equity securities
Defined Benefit Plan, Plan Assets, Allocation [Line Items]
Actual benefit plan asset allocation	34.00%	31.00%
Debt securities
Defined Benefit Plan, Plan Assets, Allocation [Line Items]
Actual benefit plan asset allocation	39.00%	43.00%
Insurance contracts
Defined Benefit Plan, Plan Assets, Allocation [Line Items]
Actual benefit plan asset allocation	7.00%	7.00%
Other
Defined Benefit Plan, Plan Assets, Allocation [Line Items]
Actual benefit plan asset allocation	20.00%	19.00%

Postretirement Benefit Plans - Classification of Pension Plan Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	$ 224
Level 1
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	8	$ 13
Level 2
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	169	153
Level III
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	18	14
Equity securities \| Level 1
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	0	0
Equity securities \| Level 2
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	71	59
Equity securities \| Level III
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	0	0
Debt securities \| Level 1
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	8	11
Debt securities \| Level 2
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	62	62
Debt securities \| Level III
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	0	0
Insurance contracts \| Level 1
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	0	0
Insurance contracts \| Level 2
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	15	14
Insurance contracts \| Level III
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	0	0
Other \| Level 1
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	0	2
Other \| Level 2
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	21	18
Other \| Level III
Defined Benefit Plan, Plan Assets, Category [Line Items]
Fair value of plan assets	$ 18	$ 14

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Postretirement Benefit Plans - Summary of Estimated Future Pension Benefit Payments (Detail) $ in Millions	Dec. 31, 2020 USD ($)
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]
2020	$ 24
2021	24
2022	26
2023	28
2024	28
Years 2026-2030	$ 170

Debt - Schedule of Outstanding Debt (Details) - USD ($)	Dec. 31, 2020	Sep. 28, 2020	May 01, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total principal	$ 7,650,000,000			$ 7,400,000,000
Unamortized discounts, premiums and debt issuance costs	(41,000,000)			(35,000,000)
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments	7,609,000,000			7,365,000,000
Current portion of long-term debt	0			0
Long-term debt	7,609,000,000			7,365,000,000
Unsecured Debt \| Fixed-rate 4.125% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 0			$ 1,350,000,000
Effective rate	4.125%			4.125%
Range of interest rates		4.125%
Unsecured Debt \| Fixed-rate 4.625% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 0			$ 400,000,000
Effective rate	4.625%			4.625%
Range of interest rates		4.625%
Unsecured Debt \| Fixed-rate 3.875% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 1,000,000,000			$ 1,000,000,000
Effective rate	3.875%			3.875%
Unsecured Debt \| Fixed-rate 4.625% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 900,000,000			$ 900,000,000
Effective rate	4.625%			4.625%
Unsecured Debt \| Fixed-rate 4.875% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 1,000,000,000			$ 1,000,000,000
Effective rate	4.875%			4.875%
Unsecured Debt \| Fixed-rate 2.7% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 500,000,000		$ 500,000,000	$ 0
Effective rate	2.70%			0.00%
Range of interest rates			2.70%
Unsecured Debt \| Fixed-rate 5.35% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 500,000,000			$ 500,000,000
Effective rate	5.35%			5.35%
Unsecured Debt \| Fixed-rate 3.875% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 750,000,000			$ 750,000,000
Effective rate	3.875%			3.875%
Unsecured Debt \| Fixed-rate 3.15% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 500,000,000		$ 500,000,000	$ 0
Effective rate	3.15%			0.00%
Range of interest rates			3.15%
Unsecured Debt \| Fixed-rate 5.55% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 500,000,000			$ 500,000,000
Effective rate	5.55%			5.55%
Unsecured Debt \| Fixed-rate 4.3% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 1,000,000,000			$ 1,000,000,000
Effective rate	4.30%			4.30%
Unsecured Debt \| Fixed-rate 3.4% senior unsecured notes
Debt Instrument [Line Items]
Total principal	$ 1,000,000,000		$ 1,000,000,000	$ 0
Effective rate	3.40%			0.00%
Range of interest rates			3.40%
Revolving Credit Facility \| Floating-rate revolving credit facility (RCF)
Debt Instrument [Line Items]
Total principal	$ 0			$ 0
Effective rate	0.00%			0.00%

Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Average rate of interest	4.20%
Principal amount outstanding 2020	$ 7,650	$ 7,400
Due in 2021	0
Due after 2021	7,650
Due after 2025	$ 4,250
Average remaining term (in years)	5 years 3 months 18 days
2024 Revolving Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Range of interest rates	0.00%
Average rate of interest	0.00%
Principal amount outstanding 2020		0
Revolving credit facility	$ 1,500
Notes Payable to Banks \| USD notes
Debt Instrument [Line Items]
Average rate of interest	4.20%
Principal amount outstanding 2020	$ 7,650	7,400
Due in 2021	0
Due after 2021	7,650
Due after 2025	$ 4,250
Average remaining term (in years)	5 years 3 months 18 days
Notes Payable to Banks \| USD notes \| Minimum
Debt Instrument [Line Items]
Range of interest rates	2.70%
Notes Payable to Banks \| USD notes \| Maximum
Debt Instrument [Line Items]
Range of interest rates	5.60%
Bank Borrowings
Debt Instrument [Line Items]
Range of interest rates	0.00%
Average rate of interest	0.00%
Principal amount outstanding 2020		$ 0

Debt - Principal Amounts of Long-Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
2021	$ 0
2022	1,000
2023	900
2024	1,000
2025	500
Due after 5 years	4,250
Amount outstanding	7,650
Total principal	$ 7,650	$ 7,400

Debt - Outstanding Debt, Debt Issuance Costs, Premium (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt	$ 7,609	$ 7,365
Debt issuance costs	33
Debt discount	$ 8
Average remaining term (in years)	5 years 3 months 18 days
Interest accrued for debt	$ 57	$ 52
Secured Debt
Debt Instrument [Line Items]
Average remaining term (in years)	5 years 3 months 18 days

Debt - 2020 Financing Activities (Details) - USD ($)	Dec. 31, 2020	Sep. 28, 2020	May 01, 2020	Dec. 31, 2019	Nov. 30, 2014
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 7,650,000,000			$ 7,400,000,000
Unsecured Debt \| Fixed-rate 2.7% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	500,000,000		$ 500,000,000	0
Range of interest rates			2.70%
Unsecured Debt \| Fixed-rate 3.15% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	500,000,000		$ 500,000,000	0
Range of interest rates			3.15%
Unsecured Debt \| Fixed-rate 3.4% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	1,000,000,000		$ 1,000,000,000	0
Range of interest rates			3.40%
Unsecured Debt \| Fixed-rate 4.125% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	0			1,350,000,000
Range of interest rates		4.125%
Debt redeemed		$ 1,350,000,000
Unsecured Debt \| Fixed-rate 4.625% senior unsecured notes
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 0			$ 400,000,000
Range of interest rates		4.625%
Debt redeemed		$ 400,000,000
Two Thousand Nineteen Cash Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, principal amount					$ 1,150,000,000

Debt - 2019 Cash Convertible Senior Notes (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		12 Months Ended
	Dec. 02, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Repayments of Convertible Debt		$ 0	$ 1,150	$ 0
Two Thousand Nineteen Cash Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Repayments of Convertible Debt	$ 1,150
Private Placement
Debt Instrument [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		11,180
Exercise price of warrants (in dollars per share)		$ 133.32

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease, option to extend term	5 years
Finance lease, option to extend term	5 years
Operating lease, termination period	1 year
Finance lease, termination period	1 year
Assets under finance leases, gross	$ 82	$ 82
Accumulated depreciation under finance leases	12	9
Liabilities arising from capital lease transactions	24	25		$ 70
Rent expense	9	12
Rent expense			$ 57
Right-of-use assets	$ 223	$ 226
Minimum
Lessee, Lease, Description [Line Items]
Operating Lease, Remaining Lease Term	1 year
Finance Lease, Remaining Lease Term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating Lease, Remaining Lease Term	30 years
Finance Lease, Remaining Lease Term	30 years
Land \| Minimum
Lessee, Lease, Description [Line Items]
Operating Lease, Remaining Lease Term	48 years
Land \| Maximum
Lessee, Lease, Description [Line Items]
Operating Lease, Remaining Lease Term	90 years

Leases - Components of Lease Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 65	$ 59

Leases - Other Information Related to Leases (Details) - USD ($) $ in Millions		12 Months Ended
	Jan. 01, 2019	Dec. 31, 2020	Dec. 31, 2019
Supplemental cash flows information:
Operating cash flows from operating leases		$ 63	$ 53
Right-of-use assets obtained in exchange for lease obligations 1)
Operating leases	$ 188	$ 50	$ 279
Weighted average remaining lease term
Operating leases (in years)		6 years	6 years
Weighted average discount rate:
Operating Lease, Weighted Average Discount Rate, Percent		3.00%	3.00%

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2021	$ 64
2022	50
2023	44
2024	28
2025	23
Thereafter	47
Total future minimum lease payments	256
Less: imputed interest	(19)
Lease liabilities	$ 237	$ 238

Leases - Lease Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Other current liabilities	$ (60)	$ (62)
Other non-current liabilities	(177)	(176)
Total	$ 237	$ 238
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilities	us-gaap:OtherLiabilities

Commitments and Contingencies - Narrative (Detail)	12 Months Ended
Commitments and Contingencies - Narrative (Detail)	Dec. 31, 2020 USD ($) individual	Dec. 31, 2019 USD ($)
Commitment And Contingencies [Line Items]
Purchase commitments	$ 372,000,000
Accrued potential and current legal fees	17,000,000	$ 44,000,000
Insurance reimbursements	8,000,000	$ 25,000,000
Insurance reimbursement of claims potential maximum exposure	$ 15,000,000
Number of individuals affected by birth defects \| individual	18
Environmental remediation costs	$ 87,000,000
Minimum
Commitment And Contingencies [Line Items]
Range of possible loss	0
Maximum
Commitment And Contingencies [Line Items]
Range of possible loss	$ 23,000,000

Stockholders' Equity and Earnings per Share - Narrative (Detail) € / shares in Units, € in Millions, $ in Millions			12 Months Ended
	Dec. 15, 2020 shares	Nov. 27, 2019 shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 shares	Dec. 31, 2020 EUR (€) € / shares shares	Dec. 31, 2019 EUR (€) € / shares shares	Oct. 31, 2018 shares
Class of Stock [Line Items]
Capital stock, authorized (in shares)			1,076,257,500			1,076,257,500
Common stock, authorized shares (in shares)			430,503,000	430,503,000		430,503,000	430,503,000
Preferred stock, shares authorized (in shares)			645,754,500	645,754,500		645,754,500	645,754,500
Share repurchase program, percentage authorized								0.20
Share repurchase program, additional shares authorized (in shares)								69,000,000
Treasury stock, shares, acquired, including shares retired (in shares)			4,800,000	15,900,000
Treasury stock, value, acquired, including shares retired \| $			$ 600	$ 1,400
Treasury shares, retired (in shares)	26,000,000	13,200,000	26,000,000	13,183,081	17,300,143
Shares acquired under repurchase program (in shares)			4,828,913	15,865,718	54,376,181
Common stock, issued and fully paid (in shares)			289,519,638	315,519,638		289,519,638	315,519,638
Common stock, par value (in euros per share) \| € / shares						€ 0.20	€ 0.20
Nominal stock capital (in Euro)			$ 59	$ 64		€ 58	€ 63
Stock Options \| Maximum
Class of Stock [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)			0	100,000	100,000

Stockholders' Equity and Earnings per Share - Schedule of Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Dividends declared (in millions)	$ 420	$ 351	$ 147
Dividends declared (USD per share)	$ 1.50	$ 1.25	$ 0.50

Stockholders' Equity and Earnings per Share - Schedule of Transactions from Employee Option and Share Plans (Detail) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Dec. 15, 2020	Nov. 27, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Total shares in treasury at beginning of year (in shares)			34,082,242	35,913,021	3,078,470
Total cost			$ 3,037	$ 3,238	$ 342
Shares acquired under repurchase program (in shares)			4,828,913	15,865,718	54,376,181
Average price in $ per share			$ 129.7	$ 90.94	$ 92.07
Amount paid			$ 627	$ 1,443	$ 5,006
Shares delivered (in shares)			3,866,203	4,513,416	4,241,487
Average price in $ per share			$ 94.26	$ 93.55	$ 107.75
Amount received			$ 71	$ 84	$ 39
Shares retired (in shares)	26,000,000	13,200,000	26,000,000	13,183,081	17,300,143
Total shares in treasury at end of year (in shares)			9,044,952	34,082,242	35,913,021
Total cost			$ 1,037	$ 3,037	$ 3,238

Stockholders' Equity and Earnings per Share - Computation of Earnings per Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings per share data:
Net income (loss)	$ 80	$ 272	$ 2,258
Less: Net income (loss) attributable to non-controlling interests	28	29	50
Net income (loss) attributable to stockholders	$ 52	$ 243	$ 2,208
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in shares)	279,763	282,056	325,781
Plus incremental shares from assumed conversion of:
Options (in shares)	526	776	1,145
Restricted Share Units, Performance Share Units and Equity Rights (in shares)	3,520	3,079	1,680
Dilutive potential common share (in shares)	4,046	3,855	2,825
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in shares)	283,809	285,911	328,606
Basic net income (loss) (in dollars per share)	$ 0.19	$ 0.86	$ 6.78
Diluted net income (loss) (in dollars per share)	$ 0.18	$ 0.85	$ 6.72
Maximum \| Stock Options
Plus incremental shares from assumed conversion of:
Antidilutive securities excluded from computation of earnings per share (in shares)	0	100	100
Maximum \| Unvested RSU's, PSU's and Equity Rights
Plus incremental shares from assumed conversion of:
Antidilutive securities excluded from computation of earnings per share (in shares)	600	700	900

Share-based Compensation - Schedule of Share-Based Compensation Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 384	$ 346	$ 314
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	45	42	40
Research & development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	159	141	133
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 180	$ 163	$ 141

Share-based Compensation - Narrative (Detail) - USD ($)		12 Months Ended
Share-based Compensation - Narrative (Detail) - USD ($)	Oct. 29, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax (expense) benefits recognized for stock-based compensation		$ 32,000,000	$ 27,000,000	$ 27,000,000
Excess tax benefit related to share-based compensation		10,000,000	3,000,000	4,000,000
Expected dividend payments		0
Amount received on stock options exercised		$ 72,000,000	84,000,000	39,000,000
Long Term Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized and available for awards		26,100,000
Charges for plan		$ 376,000,000	$ 339,000,000	$ 307,000,000
Risk-free interest rate, minimum		1.20%	1.00%	0.80%
Risk-free interest rate, maximum		1.90%	1.90%	2.10%
Intrinsic value of exercised options		$ 45,000,000	$ 48,000,000	$ 59,000,000
Amount received on stock options exercised		26,000,000	45,000,000	30,000,000
Tax benefit realized from exercise of stock options		33,000,000	31,000,000	$ 34,000,000
Unrecognized compensation cost		$ 0	$ 0
Long Term Incentive Plans \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life		5 years 11 months 23 days
Volatility rate		42.00%
Long Term Incentive Plans \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life		6 years 3 months
Volatility rate		45.00%
Long Term Incentive Plans \| Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of units granted (in dollars per share)	$ 167.64
Compensation cost recognized period	3 years
Weighted-average period for recognition of compensation cost		2 years	2 years	2 years 7 months 6 days
Fair value of vested shares		$ 0	$ 0	$ 6,000,000
Unrecognized compensation cost		$ 89,000,000	$ 135,000,000	$ 143,000,000
Long Term Incentive Plans \| Performance Share Units \| Financial Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of units granted (in dollars per share)		$ 0
Shares granted during the period (in shares)		0
Long Term Incentive Plans \| Performance Share Units \| Market Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of units granted (in dollars per share)		$ 164.92	$ 141.64	$ 121.18
Shares granted during the period (in shares)		335,567
Long Term Incentive Plans \| Performance Share Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted common shares per target units	0
Long Term Incentive Plans \| Performance Share Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted common shares per target units	2
Long Term Incentive Plans \| Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of units granted (in dollars per share)		$ 129.05	$ 111.62	$ 84.77
Award vesting period		3 years
Weighted-average period for recognition of compensation cost		1 year 6 months	1 year 6 months	1 year 6 months
Shares granted during the period (in shares)		2,616,364
Fair value of vested shares		$ 372,000,000	$ 325,000,000	$ 263,000,000
Unrecognized compensation cost		$ 502,000,000	$ 501,000,000	$ 484,000,000
Special Termination Benefits \| Long Term Incentive Plans \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year

Share-based Compensation - Summary of Stock Options and Changes (Long Term Incentive Plans) (Detail) - Long Term Incentive Plans $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Stock options
Stock options, Outstanding at January 1, 2019 (in shares) \| shares	1,202,909
Stock options, Granted (in shares) \| shares	0
Stock options, Exercised (in shares) \| shares	547,174
Stock options, Forfeited (in shares) \| shares	11,401
Stock options, Outstanding at December 31, 2019 (in shares) \| shares	644,334
Exercisable at December 31, 2019 (in shares) \| shares	644,334
Weighted average exercise price in USD
Weighted average exercise price, Outstanding at January 1, 2018 (in dollars per share) \| $ / shares	$ 52.08
Weighted average exercise price, Granted (in dollars per share) \| $ / shares	0
Weighted average exercise price, Exercised (in dollars per share) \| $ / shares	47.77
Weighted average exercise price, Forfeited (in dollars per share) \| $ / shares	35.53
Weighted average exercise price, Outstanding at December 31, 2018 (in dollars per share) \| $ / shares	56.03
Weighted average exercise price, Exercisable at December 31, 2018 (in dollars per share) \| $ / shares	$ 56.03
Weighted average remaining contractual term, Outstanding at December 31, 2018	3 years 5 months 15 days
Weighted average remaining contractual term, Exercisable at December 31, 2018	3 years 5 months 15 days
Aggregate intrinsic value, Outstanding at December 31, 2018 \| $	$ 66
Aggregate intrinsic value, Exercisable at December 31, 2018 \| $	$ 66

Share-based Compensation - Summary of Performance Share Units (Detail) - Long Term Incentive Plans - USD ($)		12 Months Ended
	Oct. 29, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Weighted average grant date fair value in USD
Unrecognized compensation cost		$ 0	$ 0
Performance Share Units
Weighted average grant date fair value in USD
Weighted average grant date fair value, Granted (in dollars per share)	$ 167.64
Performance Share Units \| Financial Performance Conditions
Shares
Shares, Outstanding at January 1, 2019 (in shares)		195,098
Shares, Granted (in shares)		0
Shares, Vested (in shares)		0
Shares, Forfeited (in shares)		195,098
Shares, Outstanding at December 31, 2019 (in shares)		0	195,098
Weighted average grant date fair value in USD
Weighted average grant date fair value, Outstanding at January 1, 2018 (in dollars per share)		$ 75.60
Weighted average grant date fair value, Granted (in dollars per share)		0
Weighted average grant date fair value, Vested (in dollars per share)		0
Weighted average grant date fair value, Forfeited (in dollars per share)		75.60
Weighted average grant date fair value, Outstanding at December 31, 2018 (in dollars per share)		$ 0	$ 75.60
Performance Share Units \| Market Performance Conditions
Shares
Shares, Outstanding at January 1, 2019 (in shares)		1,844,187
Shares, Granted (in shares)		335,567
Shares, Vested (in shares)		0
Shares, Forfeited (in shares)		48,060
Shares, Outstanding at December 31, 2019 (in shares)		2,131,694	1,844,187
Weighted average grant date fair value in USD
Weighted average grant date fair value, Outstanding at January 1, 2018 (in dollars per share)		$ 125.61
Weighted average grant date fair value, Granted (in dollars per share)		164.92	$ 141.64	$ 121.18
Weighted average grant date fair value, Vested (in dollars per share)		0
Weighted average grant date fair value, Forfeited (in dollars per share)		125.28
Weighted average grant date fair value, Outstanding at December 31, 2018 (in dollars per share)		$ 131.81	$ 125.61

Share-based Compensation - Summary of Restricted Share Units (Detail) - Long Term Incentive Plans - Restricted Share Units - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Shares
Shares, Outstanding at January 1, 2019 (in shares)	6,006,591
Shares, Granted (in shares)	2,616,364
Shares, Vested (in shares)	2,863,408
Shares, Forfeited (in shares)	366,861
Shares, Outstanding at December 31, 2019 (in shares)	5,392,686	6,006,591
Weighted average grant date fair value in USD
Weighted average grant date fair value, Outstanding at January 1, 2018 (in dollars per share)	$ 102.20
Weighted average grant date fair value, Granted (in dollars per share)	129.05	$ 111.62	$ 84.77
Weighted average grant date fair value, Vested (in dollars per share)	102.73
Weighted average grant date fair value, Forfeited (in dollars per share)	103.86
Weighted average grant date fair value, Outstanding at December 31, 2018 (in dollars per share)	$ 114.83	$ 102.20

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 9,655	$ 10,690	$ 13,716
Other comprehensive income (loss) before reclassifications	30	(75)
Amounts reclassified out of accumulated other comprehensive income (loss)	(4)	13
Income tax effects	16	14
Total other comprehensive income (loss)	42	(48)	(57)
Ending balance	9,151	9,655	10,690
Currency translation differences
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	203	218
Other comprehensive income (loss) before reclassifications	78	(15)
Amounts reclassified out of accumulated other comprehensive income (loss)	0	0
Income tax effects	0	0
Total other comprehensive income (loss)	78	(15)
Ending balance	281	203	218
Change in fair value cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	2	(3)
Other comprehensive income (loss) before reclassifications	15	(6)
Amounts reclassified out of accumulated other comprehensive income (loss)	(4)	13
Income tax effects	(2)	(2)
Total other comprehensive income (loss)	9	5
Ending balance	11	2	(3)
Net actuarial gain/(losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(130)	(92)
Other comprehensive income (loss) before reclassifications	(63)	(54)
Amounts reclassified out of accumulated other comprehensive income (loss)	0	0
Income tax effects	18	16
Total other comprehensive income (loss)	(45)	(38)
Ending balance	(175)	(130)	(92)
Accumulated Other Comprehensive Income (loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	75	123	177
Total other comprehensive income (loss)	42	(48)	(57)
Ending balance	$ 117	$ 75	$ 123

Related-party Transactions - Schedule of Amounts Related to Revenue and Other Income and Purchase of Goods and Services Incurred in Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Transactions [Abstract]
Revenue and other income	$ 54	$ 82	$ 133
Purchase of goods and services	$ 36	$ 64	$ 106

Related-party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Receivables	$ 3	$ 21
Payables	$ 7	$ 9

Fair Value of Financial Assets and Liabilities - Summary of Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Assets:
Marketable equity securities	$ 19	$ 1
Estimate of Fair Value Measurement [Member] \| Level 1
Assets:
Marketable equity securities	19	1
Estimate of Fair Value Measurement [Member] \| Level 2
Assets:
Derivative instruments-assets	18	10
Liabilities:
Derivative instruments-liabilities	0	(1)
Estimate of Fair Value Measurement [Member] \| Money market funds \| Level 1
Assets:
Money market funds	$ 1,469	$ 6

Fair Value of Financial Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	$ 7,609	$ 7,365
Level 2 \| Estimate of Fair Value Measurement [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	$ 8,600	$ 7,900

Segments and Geographical Information - Geographical Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 8,612	$ 8,877	$ 9,407
Property, plant and equipment, net	2,284	2,448	2,436
China
Segment Reporting Information [Line Items]
Revenue	3,324	3,147	3,430
Property, plant and equipment, net	257	265	287
Netherlands
Segment Reporting Information [Line Items]
Revenue	222	275	349
Property, plant and equipment, net	212	221	214
United States
Segment Reporting Information [Line Items]
Revenue	750	840	919
Property, plant and equipment, net	766	845	782
Singapore
Segment Reporting Information [Line Items]
Revenue	1,064	1,006	1,220
Property, plant and equipment, net	304	321	298
Germany
Segment Reporting Information [Line Items]
Revenue	483	526	531
Property, plant and equipment, net	51	52	55
Japan
Segment Reporting Information [Line Items]
Revenue	647	780	735
Property, plant and equipment, net	0	0	0
South Korea
Segment Reporting Information [Line Items]
Revenue	327	327	357
Property, plant and equipment, net	0	0	0
Malaysia
Segment Reporting Information [Line Items]
Revenue	95	120	112
Property, plant and equipment, net	288	337	373
Other countries
Segment Reporting Information [Line Items]
Revenue	1,700	1,856	1,754
Property, plant and equipment, net	$ 406	$ 407	$ 427