Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Trading Symbol | NXPI |
Entity Registrant Name | NXP Semiconductors N.V. |
Entity Central Index Key | 1,413,447 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 346,002,862 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Statement [Abstract] | ||||
Revenue | [1] | $ 9,498 | $ 6,101 | $ 5,647 |
Cost of revenue | (5,429) | (3,314) | (3,007) | |
Gross profit | 4,069 | 2,787 | 2,640 | |
Research and development | (1,560) | (890) | (763) | |
Selling, general and administrative | (1,141) | (922) | (686) | |
Amortization of acquisition-related intangible assets | (1,527) | (223) | (152) | |
Other income (expense) | 9 | 1,263 | 10 | |
Operating income (loss) | (150) | 2,015 | 1,049 | |
Financial income (expense): | ||||
Extinguishment of debt | (32) | (3) | ||
Other financial income (expense) | (421) | (529) | (407) | |
Income (loss) before income taxes | (603) | 1,486 | 639 | |
Benefit (provision) for income taxes | 851 | 104 | (40) | |
Results relating to equity-accounted investees | 11 | 9 | 8 | |
Net income (loss) | 259 | 1,599 | 607 | |
Less: Net income (loss) attributable to non-controlling interests | 59 | 73 | 68 | |
Net income (loss) attributable to stockholders | $ 200 | $ 1,526 | $ 539 | |
Net income (loss) per common share attributable to stockholders in $: | ||||
- Basic | $ 0.59 | $ 6.36 | $ 2.27 | |
- Diluted | $ 0.58 | $ 6.10 | $ 2.17 | |
Weighted average number of shares of common stock outstanding during the year (in thousands): | ||||
- Basic | 338,477 | 239,764 | 237,954 | |
- Diluted | [2] | 347,607 | 250,116 | 248,609 |
[1] | Revenue attributed to geographic areas is based on the customer's shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). | |||
[2] | Stock options to purchase up to 1.4 million shares of NXP's common stock that were outstanding in 2016 (2015: 0.7 million shares; 2014: 0.5 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 259 | $ 1,599 | $ 607 | |
Other comprehensive income (loss), net of tax: | ||||
Change in net investment hedge | (190) | (214) | ||
Change in fair value cash flow hedges | [1] | 2 | ||
Change in foreign currency translation adjustment | (124) | 131 | 140 | |
Change in net actuarial gain (loss) | (27) | 31 | (66) | |
Change in net unrealized gains (losses) available-for-sale securities | 4 | (1) | 1 | |
Total other comprehensive income (loss) | (147) | (29) | (137) | |
Total comprehensive income (loss) | 122 | 1,570 | 470 | |
Less: Comprehensive income (loss) attributable to non-controlling interests | 59 | 73 | 68 | |
Total comprehensive income (loss) attributable to stockholders | $ 53 | $ 1,497 | $ 402 | |
[1] | Reclassification adjustments included in Cost of revenue in the Consolidated Statements of Operations. |
Consolidated Balance Sheets
Consolidated Balance Sheets € in Millions, $ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Current assets: | ||
Cash and cash equivalents | $ 1,894 | $ 1,614 |
Accounts receivables, net | 1,033 | 1,047 |
Assets held for sale | 1,104 | 15 |
Inventories, net | 1,113 | 1,879 |
Other current assets | 254 | 257 |
Total current assets | 5,398 | 4,812 |
Non-current assets: | ||
Other non-current assets | 962 | 602 |
Property, plant and equipment, net | 2,352 | 2,922 |
Identified intangible assets, net | 7,343 | 8,790 |
Goodwill | 8,843 | 9,228 |
Total non-current assets | 19,500 | 21,542 |
Total assets | 24,898 | 26,354 |
Current liabilities: | ||
Accounts payable | 973 | 1,014 |
Liabilities held for sale | 198 | |
Restructuring liabilities - current | 129 | 197 |
Accrued liabilities | 712 | 781 |
Short-term debt | 421 | 556 |
Total current liabilities | 2,433 | 2,548 |
Non-current liabilities: | ||
Long-term debt | 8,766 | 8,656 |
Restructuring liabilities | 22 | 43 |
Deferred tax liabilities | 1,659 | 2,293 |
Other non-current liabilities | 862 | 1,011 |
Total non-current liabilities | 11,309 | 12,003 |
Equity: | ||
Non-controlling interests | 221 | 288 |
Stockholders' equity: | ||
Preferred stock, par value €0.20 per share: Authorized: 645,754,500 (2015: 645,754,500 shares) Issued: none | ||
Common stock, par value €0.20 per share: Authorized: 430,503,000 shares (2015: 430,503,000 shares) Issued and fully paid: 346,002,862 shares (2015: 346,002,862 shares) | 71 | 68 |
Capital in excess of par value | 15,679 | 15,150 |
Treasury shares, at cost: 10,609,980 shares (2015: 3,998,982 shares) | (915) | (342) |
Accumulated other comprehensive income (loss) | 34 | 181 |
Accumulated deficit | (3,934) | (3,542) |
Total Stockholders' equity | 10,935 | 11,515 |
Total equity | 11,156 | 11,803 |
Total liabilities and equity | $ 24,898 | $ 26,354 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - € / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | € 0.20 | € 0.20 |
Preferred stock, Authorized shares | 645,754,500 | 645,754,500 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | € 0.20 | € 0.20 |
Common stock, Authorized shares | 430,503,000 | 430,503,000 |
Common stock, Issued and fully paid | 346,002,862 | 346,002,862 |
Treasury shares, shares | 10,609,980 | 3,998,982 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 259 | $ 1,599 | $ 607 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 2,205 | 517 | 405 |
Share-based compensation | 338 | 216 | 133 |
Excess tax benefits from share-based compensation plans | (5) | ||
Change in fair value of warrant liability | 31 | 2 | |
Amortization of discount on debt | 34 | 39 | 3 |
Amortization of debt issuance costs | 16 | 11 | 13 |
Net (gain) loss on sale of assets | (11) | (1,263) | (10) |
(Gain) loss on extinguishment of debt | 32 | 3 | |
Results relating to equity-accounted investees | (11) | (9) | (8) |
Changes in deferred taxes | (925) | (168) | 1 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables and other current assets | (51) | (78) | (111) |
(Increase) decrease in inventories | 568 | 82 | (42) |
Increase (decrease) in accounts payable and accrued liabilities | (156) | 127 | 222 |
Decrease (increase) in other non-current assets | 5 | 30 | 13 |
Exchange differences | 15 | 193 | 246 |
Other items | (10) | 3 | (9) |
Net cash provided by (used for) operating activities | 2,303 | 1,330 | 1,468 |
Cash flows from investing activities: | |||
Purchase of identified intangible assets | (59) | (12) | (36) |
Capital expenditures on property, plant and equipment | (389) | (341) | (329) |
Proceeds from disposals of property, plant and equipment | 1 | 7 | 4 |
Proceeds from disposals of assets held for sale | 6 | ||
Purchase of interests in businesses, net of cash acquired | (202) | (1,692) | (8) |
Proceeds from sale of interests in businesses, net of cash divested | 20 | 1,605 | 1 |
Proceeds from return of equity investment | 1 | ||
Other | 2 | 2 | (25) |
Net cash provided by (used for) investing activities | (627) | (430) | (387) |
Cash flows from financing activities: | |||
Net (repayments) borrowings of short-term debt | (6) | (2) | (17) |
Amounts drawn under the revolving credit facility | 200 | 800 | |
Repayments under the revolving credit facility | (200) | (950) | |
Repurchase of long-term debt | (3,295) | (3,586) | (92) |
Principal payments on long-term debt | (38) | (32) | (15) |
Proceeds from the issuance of long-term debt | 3,259 | 3,680 | 1,150 |
Cash paid for debt issuance costs | (26) | (32) | (16) |
Proceeds from the sale of warrants | 134 | ||
Cash paid for Notes hedge derivatives | (208) | ||
Dividends paid to non-controlling interests | (126) | (51) | (50) |
Cash proceeds from exercise of stock options | 115 | 51 | 145 |
Purchase of treasury shares | (1,280) | (475) | (1,435) |
Hold-back payments on prior acquisitions | (2) | ||
Excess tax benefits from share-based compensation plans | 5 | ||
Net cash provided by (used for) financing activities | (1,392) | (449) | (554) |
Effect of changes in exchange rates on cash positions | (4) | (22) | (12) |
Increase (decrease) in cash and cash equivalents | 280 | 429 | 515 |
Cash and cash equivalents at beginning of period | 1,614 | 1,185 | 670 |
Cash and cash equivalents at end of period | 1,894 | 1,614 | 1,185 |
Net cash paid during the period for: | |||
Interest | 348 | 172 | 138 |
Income taxes | 67 | 40 | 24 |
Net gain (loss) on sale of assets: | |||
Cash proceeds from the sale of assets | 21 | 1,612 | 11 |
Book value of these assets | (10) | (349) | (10) |
Non-cash gains (losses) | 9 | ||
Net (gain) loss on sale of assets | 11 | 1,263 | 10 |
Non-cash investing and financing information: | |||
Issuance of common stock for business combinations | $ 9,686 | ||
Exchange of Term Loan B for Term Loan F [Member] | |||
Non-cash investing and financing information: | |||
Exchange of one Term Loan for another | $ 1,422 | ||
Exchange of Term Loan A1 for Term Loan E [Member] | |||
Non-cash investing and financing information: | |||
Exchange of one Term Loan for another | 400 | ||
Available-for-sale Securities [Member] | |||
Non-cash investing and financing information: | |||
Fair value of available-for-sale securities | $ 9 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Treasury Shares at Cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total Stockholders' Equity [Member] | Non-controlling Interests [Member] |
Balance at Dec. 31, 2013 | $ 1,546 | $ 51 | $ 6,175 | $ (167) | $ 347 | $ (5,105) | $ 1,301 | $ 245 |
Balance, shares at Dec. 31, 2013 | 247,581,000 | |||||||
Net income (loss) | 607 | 539 | 539 | 68 | ||||
Other comprehensive income | (137) | (137) | (137) | |||||
Share-based compensation plans | 125 | 125 | 125 | |||||
Treasury shares | (1,435) | $ (1,435) | (1,435) | |||||
Treasury shares, shares | (23,246,000) | |||||||
Shares issued pursuant to stock awards | 145 | $ 383 | (238) | 145 | ||||
Shares issued pursuant to stock awards, shares | 8,245,000 | |||||||
Dividends non-controlling interests | (50) | (50) | ||||||
Balance at Dec. 31, 2014 | 801 | $ 51 | 6,300 | (1,219) | 210 | (4,804) | 538 | 263 |
Balance, shares at Dec. 31, 2014 | 232,580,000 | |||||||
Net income (loss) | 1,599 | 1,526 | 1,526 | 73 | ||||
Other comprehensive income | (29) | (29) | (29) | |||||
Share-based compensation plans | 218 | 218 | 218 | |||||
Treasury shares | (475) | $ (475) | (475) | |||||
Treasury shares, shares | (5,336,000) | |||||||
Shares issued pursuant to stock awards | 51 | $ 315 | (264) | 51 | ||||
Shares issued pursuant to stock awards, shares | 5,008,000 | |||||||
Issuance of common stock for business combination, net of issuance costs | 9,686 | $ 17 | 8,632 | 1,037 | 9,686 | |||
Issuance of common stock for business combination, net of issuance costs, shares | 109,751,000 | |||||||
Dividends non-controlling interests | (51) | (51) | ||||||
Changes in participation | 3 | 3 | ||||||
Balance at Dec. 31, 2015 | 11,803 | $ 68 | 15,150 | (342) | 181 | (3,542) | 11,515 | 288 |
Balance, shares at Dec. 31, 2015 | 342,003,000 | |||||||
Net income (loss) | 259 | 200 | 200 | 59 | ||||
Other comprehensive income | (147) | (147) | (147) | |||||
Reclassification of Warrants | 168 | 168 | 168 | |||||
Share-based compensation plans | 336 | 336 | 336 | |||||
Excess tax benefits from share-based compensation plans | 21 | 21 | 21 | |||||
Treasury shares | $ (1,280) | $ (1,280) | (1,280) | |||||
Treasury shares, shares | (15,537,868) | (15,538,000) | ||||||
Shares issued pursuant to stock awards | $ 115 | $ 707 | (592) | 115 | ||||
Shares issued pursuant to stock awards, shares | 8,927,000 | |||||||
Dividends non-controlling interests | (126) | (126) | ||||||
Other | 7 | $ 3 | 4 | 7 | ||||
Balance at Dec. 31, 2016 | $ 11,156 | $ 71 | $ 15,679 | $ (915) | $ 34 | $ (3,934) | $ 10,935 | $ 221 |
Balance, shares at Dec. 31, 2016 | 335,392,000 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | 1 The Company NXP Semiconductors N.V. (including our subsidiaries, referred to collectively herein as “NXP”, “NXP Semiconductors”, “we”, “our”, “us” and the “Company”) is a global semiconductor company incorporated in the Netherlands as a Dutch public company with limited liability (naamloze vennootschap) On December 7, 2015, we acquired Freescale Semiconductor, Ltd. (“Freescale”). The results presented in the Consolidated Financial Statements and Notes to the Consolidated Financial Statements include Freescale’s results of operations for the periods of December 7, 2015 through December 31, 2015 and 2016 (the “Post-Merger Period”). On October 27, 2016, NXP entered into a purchase agreement (the “Purchase Agreement”) with Qualcomm River Holdings B.V. (“Buyer”), a wholly-owned, indirect subsidiary of Qualcomm Incorporated. Pursuant to the Purchase Agreement, Buyer commenced a tender offer to acquire all of the issued and outstanding common shares of NXP for $110 per share in cash, for estimated total cash consideration of $38 billion. The tender offer is not subject to any financing condition. An Extraordinary General Meeting of NXP’s shareholders was convened on January 27, 2017, in connection with the offer where the shareholders of NXP approved all resolutions brought before them, with 95% of the votes cast in favor of each such resolution. In light of the foregoing, the tender offer is now conditioned on the tender of 80% of the outstanding shares of NXP, and Buyer, with NXP’s prior written consent (not to be unreasonably withheld, conditioned or delayed), may reduce the required threshold to a percentage not less than 70% of the outstanding shares. Pending the receipt of certain regulatory approvals, as well as satisfaction of other customary closing conditions, the proposed transaction is expected to close by the end of calendar 2017. The Purchase Agreement contains certain termination rights for NXP and Buyer. If the Purchase Agreement is terminated under certain circumstances, including termination by NXP to enter into a superior proposal for an alternative acquisition transaction or a termination following a change of recommendation by the NXP Board, NXP will be obligated to pay to Buyer a termination compensation equal to $1.25 billion in cash. If the Purchase Agreement is terminated under certain circumstances, including circumstances relating to the failure to obtain antitrust approvals or failure to complete in all material respects certain internal reorganization steps and related dispositions with respect to NXP, Buyer will be obligated to pay to NXP a termination compensation equal to $2 billion in cash. On June 14, 2016, NXP announced an agreement to divest its Standard Products (“SP”) business to a consortium of financial investors consisting of Beijing JianGuang Asset Management Co., Ltd (“JAC Capital”) and Wise Road Capital LTD (“Wise Road Capital”). On February 6, 2017 we divested SP, receiving $2.75 billion in cash proceeds. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2 Significant Accounting Policies The Consolidated Financial Statements include the accounts of the Company together with its consolidated subsidiaries, including NXP B.V. and all entities in which the Company holds a direct or indirect controlling interest, in such a way that the Company would have the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb the losses or the right to receive benefits of the entity that could be potentially significant to the Company. Investments in companies in which the Company exercises significant influence but does not control, are accounted for using the equity method. The Company’s share of the net income of these companies is included in results relating to equity-accounted investees in the consolidated statements of operations. All intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. Net income (loss) includes the portion of the earnings of subsidiaries applicable to non-controlling non-controlling non-controlling Certain items previously reported have been reclassified to conform to the current period presentation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Fair value measurements Fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for an identical asset or liability, we develop assumptions based on market observable data and, in the absence of such data, utilize internal information that we consider to be consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Priority is given to observable inputs. These two types of inputs form the basis for the following fair value hierarchy. • Level 1: Quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and valuations based on models where the inputs or significant value drives 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. 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 the U.S. dollar. Prior to January 1, 2016, the functional currency of the holding company (defined as NXP Semiconductors N.V. and NXP B.V.) was the euro. 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 stockholder’s equity. If the operation is a non-wholly non-controlling 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 2016 1.0474 1.1065 1.0474 1.1423 2015 1.0915 1.1150 1.0869 1.2155 2014 1.2155 1.3262 1.2155 1.3857 (1) The average of the noon-buying rate at the end of each fiscal month during the period presented. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end Derivative financial instruments including hedge accounting The Company uses derivative financial instruments in the management of its foreign currency risks and the input costs of gold for a portion of our anticipated purchases within the next 12 months. The Company measures all derivative financial instruments based on fair values derived from market prices of the instruments or from option pricing models, as appropriate, and records these as assets or liabilities in the balance sheet. Changes in the fair values are immediately recognized in the statement of operations unless cash flow hedge accounting is applied. Changes in the fair value of a derivative that is highly effective and designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income (loss), until earnings are affected by the variability in cash flows of the designated hedged item. The application of cash flow hedge accounting for foreign currency risks is limited to transactions that represent a substantial currency risk that could materially affect the financial position of the Company. Foreign currency gains or losses arising from the translation of a financial liability designated as a hedge of a net investment in a foreign operation are recognized directly in other comprehensive income, to the extent that the hedge is effective, and are presented as a separate component of accumulated other comprehensive income (loss) within stockholders equity. To the extent that a hedge is ineffective, the ineffective portion of the fair value change is recognized in the consolidated statement of operations. When the hedged net investment is disposed of, the corresponding amount in the accumulated other comprehensive income is transferred to the statement of operations as part of the profit or loss on disposal. On initial designation of the hedge relationship between the hedging instrument and hedged item, the Company documents this relationship, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk, and whether the actual results of each hedge are within a range of 80-125 percent. 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 were $789 million at December 31, 2016 (2015: $213 million). The gross notional amounts by currency were as follows: 2016 2015 Euro 459 4 Chinese renminbi 45 (28 ) Japanese yen 35 26 Malaysian ringgit 73 60 Taiwan dollar 94 78 Thai baht 43 30 Other 40 43 789 213 Cash and cash equivalents Cash and cash equivalents include all cash balances and short-term highly liquid investments with a maturity of three months or less at acquisition that are readily convertible into known amounts of cash. Cash and cash equivalents are stated at face value which approximates fair value. Receivables Receivables are carried at amortized cost, net of allowances for doubtful accounts and net of rebates and other contingent discounts granted to distributors. When circumstances indicate a specific customer’s ability to meet its financial obligation to us is impaired, we record an allowance against amounts due and value the receivable at the amount reasonably expected to be collected. For all other customers, we evaluate our trade accounts receivable for collectibility based on numerous factors including objective evidence about credit-risk concentration, collective debt risk based on average historical losses, and specific circumstances such as serious adverse economic conditions in a specific country or region. Inventories Inventories are stated at the lower of cost or market, less advance payments on work in progress. The cost of inventories is determined using the first-in, first-out Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. Depreciation is calculated using the straight-line method over the expected economic life of the asset. Depreciation of special tooling is also based on the straight-line method unless a depreciation method other than the straight-line method better represents the consumption pattern. Gains and losses on the sale of property, plant and equipment are included in other income and expense. Plant and equipment under capital leases are initially recorded at the lower of the fair value of the leased property or the present value of minimum lease payments. These assets and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Goodwill We record goodwill when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired. We assign the goodwill to our reporting units based on the relative expected fair value provided by the acquisition. We perform an annual impairment assessment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, which includes evaluating qualitative and quantitative factors to assess the likelihood of an impairment of a reporting unit’s goodwill. We perform impairment tests using a fair value approach when necessary. The reporting unit’s carrying value used in an impairment test represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash, investments and debt. Identified intangible assets Licensed technology and patents are generally amortized on a straight-line basis over the periods of benefit. We amortize all acquisition-related intangible assets that are subject to amortization over their estimated useful life based on economic benefit. Acquisition-related in-process We perform a quarterly review of finite-lived identified intangible assets to determine whether facts and circumstances indicate that the useful live is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If an asset’s useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. We perform an annual impairment assessment in the fourth quarter of each year for indefinite-lived intangible assets, or more frequently if indicators of potential impairment exist, to determine whether it is more likely than not that the carrying value of the assets may not be recoverable. If necessary, a quantitative impairment test is performed to compare the fair value of the indefinite-lived intangible asset with its carrying value. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. Research and development Costs of research and development are expensed in the period in which they are incurred, except for in-process Advertising Advertising costs are expensed when incurred. Debt issuance costs Direct costs incurred to obtain financings are capitalized and subsequently amortized over the term of the debt using the effective interest rate method. Upon extinguishment of any related debt, any unamortized debt issuance costs are expensed immediately. Revenue recognition The Company’s revenue is derived from sales to distributors, made-to-order Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the service has been provided, the sales price is fixed or determinable, and collection is reasonably assured, based on the terms and conditions of the sales contract. For made-to-order made-to-order For sales to distributors, revenue is recognized upon sale to the distributor (sell-in pre-defined Distributor reserves estimate the impact of credits granted to distributors under certain programs common in the semiconductor industry whereby distributors receive certain price adjustments to meet individual competitive opportunities, or are allowed 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. The Company’s policy is to use a rolling historical experience rate, as well as a prospective view of products and pricing in the distribution channel for distributors who participate in our volume rebate incentive program, in order to estimate the proper provision for this program at the end of any given reporting period. 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. Distributor reserves are also adjusted when recent historical data does not represent anticipated future activity. 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. In accordance with this historical data, a pro rata portion of the sales to these distributors is not recognized but deferred until the return period has lapsed or the other return conditions no longer apply. Revenue is recorded net of sales taxes, customer discounts, rebates and other contingent discounts granted to distributors. We include shipping charges billed to customers in revenue and include the related shipping costs in cost of revenue. 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 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. For periods prior to January 1, 2016, the mark-to-market mark-to-market re-measured. 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 more than 50 percent likely to be realized upon resolution of the uncertainty. The liability for unrecognized tax benefits and the related interest and penalties is recorded under accrued liabilities and other non-current The Company recognizes windfall tax benefits associated with share-based awards directly to stockholders’ equity when realized. A windfall tax benefit occurs when the actual tax benefit realized by the Company upon an employee’s disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that the Company had recorded. The Company records windfall tax benefits to stockholders’ equity. A shortfall occurs when the actual tax benefit realized by the Company upon an employee’s disposition of a share-based award is less than the deferred tax asset, if any, associated with the award that the Company has recorded. The Company records shortfall tax detriments when realized to stockholders’ equity to the extent that previous windfall tax benefits exist (referred to as the APIC windfall pool), with any remainder recognized in income tax expense. When assessing whether a tax benefit relating to share-based compensation has been realized, the Company follows the tax law ordering method, under which current year share-based compensation deductions are assumed to be utilized before net operating loss carryforwards and other tax attributes. 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 The Company recognizes as a component of other comprehensive income, net of taxes, the gains or losses and prior service costs that arise during the year but are not recognized as a component of net periodic benefit cost. Amounts recognized in accumulated other comprehensive income, including the gains or losses and the prior services costs are adjusted as they are subsequently recognized as components of net periodic benefit costs. For all of the Company’s postretirement benefit plans, the measurement date is December 31, our year-end. Share-based compensation We recognize compensation expense for all share-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. We use the Black-Scholes option pricing model to determine the estimated fair value for certain awards. Share-based compensation cost for restricted share units (“RSU”s) with time-based vesting is measured based on the closing fair market value of our common stock on the date of the grant, reduced by the present value of the estimated expected future dividends, and then multiplied by the number of RSUs granted. Share-based compensation cost for performance-based share units (“PSU”s) granted with performance or market conditions is measured using a Monte Carlo simulation model on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Operations. For stock options and RSUs, the grant-date value, less estimated pre-vest 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, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of excess tax benefits that would be recorded in additional paid-in 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 13% of our revenue in 2016, 14% in 2015 and 13% in 2014 and one other distributor accounted for less than 10% of our revenue in 2016, 14% in 2015 and 13% in 2014. No other distributor accounted for greater than 10% of our revenue for 2016, 2015 or 2014. No individual OEM for which we had direct sales to accounted for more than 10% of our revenue for 2016, 2015 or 2014. Credit exposure related to NXP’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. NXP is party to certain hedge transactions related to its 2019 Cash Convertible Senior Notes. NXP is subject to the risk that the counterparties to these transactions may not be able to fulfill their obligations under these hedge transactions. NXP purchased options and issued warrants to hedge potential cash payments in excess of the principal and contractual interest related to its 2019 Cash Convertible Senior Notes, which were issued during fiscal 2014. The 2019 Cash Convertible Senior Note hedges are adjusted to fair value each reporting period and unrealized gains and losses are reflected in NXP’s Consolidated Statements of Operations. Because the fair value of the 2019 Cash Convertible Senior Notes embedded conversion derivative and the 2019 Cash Convertible Senior Notes hedges are designed to have similar offsetting values, there was no impact to NXP’s Consolidated Statements of Operations relating to these adjustments to fair value. The Company is using outside suppliers or foundries for a portion of its manufacturing capacity. We have operations in Europe and Asia subject to collective bargaining agreements which could pose a risk to the Company in the near term but we do not expect that our operations will be disrupted if such is the case. Accounting standards adopted in 2016 In April 2015, the FASB issued ASU No. 2015-05, Internal-Use 350-40): In September 2015, the FASB issued ASU No. 2015-16, In November 2015, the FASB issued ASU 2015-17, 2015-17 non-current. New standards to be adopted after 2016 In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, No. 2015-14, In January 2016, the FASB issued ASU 2016-01, 825-10). 2016-01 In February, 2016, the FASB issued ASU 2016-02, Leases . right-of-use In March, 2016 the FASB issued ASU 2016-09, Compensation—Stock In March 2016, the FASB issued ASU 2016-08, Revenue 2016-10, Revenue 2016-12, Revenue 2016-11, Revenue 2014-09 2014-16 2016-20, 2014-09, Revenue The amendments in ASU 2016-08 2016-10 2014-09: 2016-11 2016-12 2016-12 2014-09, In August 2016, the FASB issued ASU 2016-15, Classification 2016-15 2016-15 In October 2016, the FASB issued ASU 2016-16, 2016-16, In January 2017, the FASB issued ASU 2017-01, 2017-01 2017-01 |
Acquisitions and Divestments
Acquisitions and Divestments | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestments | 3 Acquisitions and Divestments 2016 There were no material divestments during 2016. On August 8, 2016, we acquired a business for $200 million. The total purchase price has been preliminarily allocated to goodwill ($14 million), other intangible assets ($177 million), inventories ($8 million) and tangible fixed assets ($1 million). The other intangible assets relate to core technology ($172 million) with an amortization period of 7 years and existing technology ($5 million) with an amortization period of 2 years. The measurement period still remains open pending the completion of valuation procedures related to the acquired assets and assumed liabilities. 2015 On December 7, 2015, we acquired Freescale for a purchase price of $11,639 million. Acquisition-related transaction costs ($42 million) such as legal, accounting and other related expenses were recorded as a component of selling, general and administrative expense in our consolidated statements of operations. Under the terms of the merger agreement, each holder of Freescale common shares received (i) 0.3521 of an NXP ordinary share and (ii) $6.25 in cash per such common share. The total purchase price amounts to $11,639 million and consisted of the following: Cash payment of $6.25 per Freescale common share 1,948 Total value of NXP ordinary shares delivered 9,449 Value of NXP restricted share units delivered to holders of Freescale restricted share units and performance-based restricted share units 157 Value of NXP stock options delivered to holders of Freescale stock options 85 Total purchase price 11,639 The total purchase price has been allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values as of the date of the merger, December 7, 2015. The fair value of acquired tangible and identified intangible assets is determined based on inputs that are unobservable and significant to the overall fair value measurement. As such, acquired tangible and identified intangible assets are classified as Level 3 assets. During 2016, we made certain adjustments to the preliminary allocation of the purchase price. A decrease of $33 million was recorded to deferred taxes, an increase of $3 million was recorded to accounts payable, accrued liabilities and other current liabilities, a decrease of $5 million was recorded to inventories with a corresponding net decrease of $25 million recorded to goodwill. Our valuation procedures related to the acquired assets and assumed liabilities was completed during the fourth quarter of 2016. The identified intangible assets consist of existing technology and platform technology, In-Process The allocation of the purchase price is as follows: Total purchase price 11,639 Estimated fair value of net tangible assets acquired and liabilities assumed: Cash and cash equivalents 427 Accounts receivable, net 511 Inventories, net 1,280 Other current assets 93 Property, plant and equipment 1,827 Other non-current 64 Accounts payable, accrued liabilities and other current liabilities (714 ) Deferred taxes (2,292 ) Other long-term liabilities (329 ) Long-term debt (5,091 ) (4,224 ) Fair value (and useful lives) of identified intangible assets acquired: Customer relationships (included in customer-related) (19 years) 764 Developed technology (included in technology-based) (5 years) 5,371 Sales order backlog (included in marketing-related) (1 year) 190 Trade name (included in marketing-related) (5 years) 81 In-process * 2,017 Other 41 8,464 Goodwill 7,399 * Acquired 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. Goodwill is primarily attributable to the anticipated synergies and economies of scale expected from the operations of the combined company and to the assembled workforce of Freescale. All of the goodwill has been allocated to NXP’s HPMS segment. Goodwill is not deductible for income tax purposes. The cash consideration paid in connection of the acquisition of Freescale, the repayment of certain amounts under Freescale’s outstanding credit facility and Secured Notes and the payment of certain transaction costs in relation to the acquisition of Freescale were funded by cash on hand, the Secured Bridge Term Credit Agreement, the net proceeds of the 2020 Senior Unsecured Notes and 2022 Senior Unsecured Notes and the net proceeds of Term Loan B. See Note 16, “Debt” in the Consolidated Financial Statements. 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 Freescale had been acquired as of January 1, 2014: 2015 2014 Revenue 9,850 9,904 Net income (loss) attributable to stockholders (84 ) (277 ) Net income (loss) per common share attributable to stockholders: - Basic (0.25 ) (0.81 ) - Diluted (0.25 ) (0.81 ) The pro forma information excludes the result of operations of NXP’s RF Power business and includes adjustments to amortization and depreciation for identified intangible assets and property, plant and equipment acquired, adjustments to share-based compensation expense and interest expense for the additional indebtedness incurred to complete the acquisition. The pro forma result has been prepared for comparative purposes only and does 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, 2014 or of the results of future operations of the combined business. In addition, the result is not intended to be a projection of future results and does not reflect synergies that might be achieved from the combined operations. Other acquisitions In addition to the above mentioned acquisition of Freescale, we completed two other acquisitions qualifying as business combinations: the acquisition of Quintic’s Bluetooth Low Energy (“BTLE”) and Wearable businesses, located in China and the USA, and the acquisition of Athena SCS Ltd. (“Athena”), located in the United Kingdom. Both acquisitions were not significant to our consolidated results of operations. The aggregate purchase price consideration of $102 million was allocated to goodwill ($40 million), other intangible assets ($68 million) and net liabilities assumed ($6 million). The other intangible assets relate to core technology ($29 million) with an amortization period varying up to 14 years, existing technology, ($17 million) with an amortization period varying up to 5 years and in-process The results of BTLE are consolidated in the Secure Connected Devices business line. The results of Athena are consolidated in the Secure Identification Solutions business line. Both business lines are part of the reportable segment HPMS. Divestments In February 2015, we announced the establishment of a 49% owned joint venture (WeEn) with JianGuang Asset Management Co., Ltd. (JAC Capital) in China to combine NXP’s advanced technology from its Bipolar Power business line with JAC Capital’s connections in the Chinese manufacturing network and distribution channels. This transaction closed on November 9, 2015. The results of the Bipolar Power business were included in the reportable segment SP. In May 2015, we announced an agreement with JianGuang Asset Management Co., Ltd. (JAC Capital) in China to sell NXP’s RF Power Business. This transaction closed on December 7, 2015. The results of the RF Power business were consolidated in the reportable segment HPMS. The gain on the sale of these businesses of $1,257 million is included in other income (expense). 2014 There were no significant acquisitions or divestments in 2014. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | 4 Assets Held for Sale On June 14, 2016, NXP announced an agreement to divest its Standard Products (“SP”) business to a consortium of financial investors consisting of Beijing JianGuang Asset Management Co., Ltd (“JAC Capital”) and Wise Road Capital LTD (“Wise Road Capital”). On February 6, 2017, we divested SP, receiving $2.75 billion in cash proceeds. At December 31, 2016, the SP business segment met the criteria to be classified as held for sale. The results of the SP business segment are consolidated in the reportable segment SP. The SP business segment presentation as held for sale does not meet the criteria to be classified as a discontinued operation at December 31, 2016 primarily due to the disposal of this business not representing a strategic shift that will have a major effect on the Company’s operations and financial results. The following table summarizes the carrying value of assets and liabilities held for sale which is primarily relative to the SP business: 2016 Trade accounts receivable, net 3 Other assets 28 Inventories, net 208 Property, plant and equipment, net 396 Identified intangible assets, net 133 Goodwill 336 Assets held for sale 1,104 Trade accounts payable (110 ) Accrued and other liabilities (88 ) Liabilities held for sale (198 ) |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | 5 Supplemental Financial Information Statement of Operations Information Depreciation, amortization and impairment Depreciation and amortization, including impairment charges, are as follows: 2016 2015 2014 Depreciation of property, plant and equipment 609 262 219 Amortization of internal use software 24 26 31 Amortization of other identified intangible assets (*) 1,572 229 155 2,205 517 405 (*) Includes impairment charges relative to IPR&D, which was acquired as part of the acquisition of Freescale of $89 million for 2016. Depreciation of property, plant and equipment is primarily included in cost of revenue. Other income (expense) 2016 2015 2014 Result on disposal of businesses 8 1,257 6 Result on disposal of properties 1 6 3 Other income (expense) — — 1 9 1,263 10 Financial income (expense) 2016 2015 2014 Interest income 11 6 3 Interest expense (408 ) (227 ) (158 ) Total interest expense, net (397 ) (221 ) (155 ) Net gain (loss) on extinguishment of debt (32 ) — (3 ) Foreign exchange rate results (15 ) (193 ) (246 ) Change in fair value of the warrant liability — (31 ) (2 ) Miscellaneous financing costs/income, net (9 ) (84 ) (4 ) Total other financial income (expense) (56 ) (308 ) (255 ) Total (453 ) (529 ) (410 ) From May 2011 until December 31, 2015, the Company applied net investment hedging. 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, the warrants will now be classified in stockholders’ equity, and mark-to-market re-measured. Equity-accounted investees Results related to equity-accounted investees at the end of each period were as follows: 2016 2015 2014 Company’s share in income (loss) 11 8 8 Other results — 1 — 11 9 8 The total carrying value of investments in equity-accounted investees is summarized as follows: 2016 2015 Shareholding % Amount Shareholding % Amount ASMC 27 21 27 21 ASEN 40 56 40 46 WeEn 49 62 49 59 Others 15 15 154 141 Investments in equity-accounted investees are included in Corporate and Other. The fair value of NXP’s shareholding in the publicly listed company ASMC based on the quoted market price at December 31, 2016 is $35 million. Balance Sheet Information Cash and cash equivalents At December 31, 2016 and December 31, 2015, our cash balance was $1,894 million and $1,614 million, respectively, of which $316 million and $485 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 2016, a dividend of $325 million (2015: $130 million) has been paid by SSMC. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 6 Restructuring Charges At each reporting date, we evaluate our restructuring liabilities, which consist primarily of termination benefits, to ensure that our accruals are still appropriate. During 2016, we recognized $52 million of employee severance costs in our restructuring liabilities, which was primarily related to specific targeted actions. In December 2015, we began the implementation of the planned restructuring and cost reduction activities in connection with the acquisition of Freescale. We recognized $216 million of employee severance costs and $23 million of other exit costs related to this plan in 2015. There were no material new restructuring projects in 2014. The following table presents the changes in the position of restructuring liabilities in 2016 by segment: Balance Additions Utilized Released Other (1) Balance HPMS 234 52 (131 ) (3 ) (4 ) 148 SP 6 — (2 ) — (1 ) 3 Corporate and Other — — — — — — 240 52 (133 ) (3 ) (5 ) 151 (1) Other changes primarily related to translation differences and internal transfers. The total restructuring liability as of December 31, 2016 of $151 million is classified in the balance sheet under current liabilities ($129 million) and non-current 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 2015 by segment: Balance Additions Utilized Released Other (1) Balance HPMS 14 226 (17 ) (1 ) 12 234 SP 5 8 (6 ) — (1 ) 6 Corporate and Other 21 5 (23 ) (1 ) (2 ) — 40 239 (46 ) (2 ) 9 240 (1) Other changes primarily related to translation differences and internal transfers. The total restructuring liability as of December 31, 2015 of $240 million is classified in the balance sheet under current liabilities ($197 million) and non-current The utilization of the restructuring liabilities mainly reflects the execution of ongoing restructuring programs the Company initiated in earlier years. The components of restructuring charges less releases recorded in the liabilities in 2016, 2015 and 2014 are as follows: 2016 2015 2014 Personnel lay-off 52 239 43 Other exit costs 19 27 1 Release of provisions/accruals (3 ) (2 ) (16 ) Net restructuring charges 68 264 28 The restructuring charges less releases recorded in operating income are included in the following line items in the statement of operations: 2016 2015 2014 Cost of revenue 18 18 16 Selling, general and administrative 9 155 3 Research & development 41 91 9 Net restructuring charges 68 264 28 |
Provision for Income Taxes
Provision for Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | 7 Provision for Income Taxes In 2016, NXP generated a loss before income taxes of $603 million (2015: an income of $1,486 million; 2014: an income of $639 million). The components of income (loss) before income taxes are as follows: 2016 2015 2014 Netherlands 537 1,528 398 Foreign (1,140 ) (42 ) 241 (603 ) 1,486 639 The components of the benefit (provision) for income taxes are as follows: 2016 2015 2014 Current taxes: Netherlands (7 ) (13 ) (7 ) Foreign (67 ) (51 ) (32 ) (74 ) (64 ) (39 ) Deferred taxes: Netherlands 205 (4 ) 2 Foreign 720 172 (3 ) 925 168 (1 ) Total benefit (provision) for income taxes 851 104 (40 ) 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: (in percentages) 2016 2015 2014 Statutory income tax in the Netherlands 25.0 25.0 25.0 Rate differential local statutory rates versus statutory rate of the Netherlands 24.2 (4.3 ) (2.5 ) Net change in valuation allowance 72.6 (13.8 ) 2.4 Prior year adjustments 0.1 — 0.5 Non-taxable 1.7 (0.1 ) (0.3 ) Non-deductible (7.0 ) 4.0 5.6 Sale of non-deductible — 2.7 — Other taxes and tax rate changes 7.1 1.0 — Tax effects of remitted and unremitted earnings and withholding taxes (2.7 ) 0.1 1.3 Tax on gains related to internal corporate reorganization transactions (10.3 ) — — Unrecognized tax benefits (0.5 ) 0.1 0.6 Netherlands tax incentives 17.9 (18.5 ) (21.5 ) Foreign tax incentives 13.0 (3.2 ) (4.8 ) Effective tax rate 141.1 % (7.0 %) 6.3 % 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 2024. The impact of this tax holiday decreased foreign taxes by $24 million and $29 million for 2016 and 2015, respectively . Deferred tax assets and liabilities The principal components of deferred tax assets and liabilities are presented below: 2016 2015 Operating loss and tax credit carryforwards 1,031 963 Accrued interest 432 545 Other accrued liabilities 107 147 Pensions 86 87 Stock Based Compensation 58 73 Restructuring 40 61 Receivables 36 11 Inventories (including purchase accounting basis difference) 27 (109 ) Other assets 10 9 Long-term debt — 179 Total Gross Deferred Tax Assets 1,827 1,966 Valuation Allowance (127 ) (632 ) Total Net Deferred Tax Assets 1,700 1,334 Intangible assets (including purchase accounting basis difference) (2,431 ) (2,952 ) Undistributed earnings of foreign subsidiaries (367 ) (359 ) Property, plant and equipment (including purchase accounting basis difference) (134 ) (226 ) Total Deferred Tax Liabilities (2,932 ) (3,537 ) Net Deferred Tax Position (1,232 ) (2,203 ) The classification of the deferred tax assets and liabilities in the Company’s consolidated balance sheets is as follows: 2016 2015 Deferred tax assets within other current assets — 26 Deferred tax assets within other non-current 427 69 Deferred tax liabilities within accrued liabilities — (5 ) Deferred tax liabilities within non-current (1,659 ) (2,293 ) (1,232 ) (2,203 ) 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 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 decreased by $505 million during 2016 (2015: $5 million increase). ASC 740, Income Taxes At December 31, 2016 tax loss carryforwards of $1,899 million (inclusive of $270 million of U.S. state tax losses) will expire as follows: Balance December 31, Scheduled expiration 2016 2017 2018 2019 2020 2021 2022-2026 later unlimited Tax loss carryforwards 1,899 26 10 29 10 1 947 290 586 The Company also has tax credit carryforwards of $749 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 2017 2018 2019 2020 2021 2022-2026 later unlimited Tax credit carryforwards 749 1 8 12 32 18 336 282 60 The net income tax payable (excluding the liability for unrecognized tax benefits) as of December 31, 2016 amounted to $10 million (2015: $26 million) and includes amounts directly payable to or receivable from tax authorities. The Company does not indefinitely reinvest the undistributed earnings of its subsidiaries. Consequently, the Company has recognized a deferred income tax liability of $367 million at December 31, 2016 (2015: $359 million) for the additional income taxes and withholding taxes payable upon the future remittances of these earnings of foreign subsidiaries. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance as of January 1, 149 125 143 Assumed in the acquisition of Freescale — 121 — Decreases from activities which are held for sale (7 ) — — Increases from tax positions taken during prior periods 1 1 — Decreases from tax positions taken during prior periods (3 ) (111 ) (21 ) Increases from tax positions taken during current period 10 15 3 Decreases relating to settlements with the tax authorities (4 ) (2 ) — Balance as of December 31, 146 149 125 Of the total unrecognized tax benefits at December 31, 2016, $125 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 unrecognized tax benefits as financial expense and penalties as income tax expense. The total related interest and penalties recorded during the year 2016 amounted to $2 million (2015: $7 million; 2014: $3 million). As of December 31, 2016 the Company has recognized a liability for related interest and penalties of $12 million (2015: $14 million; 2014: $7 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; however, an estimate of the range of reasonably possible change cannot be made. The Company files income tax returns in the Netherlands, the USA 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, Germany, USA, China, Taiwan, Thailand, Malaysia, the Philippines and India) vary by country, ranging from 2004 through 2016. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 8 Earnings per Share The computation of earnings per share (EPS) is presented in the following table: 2016 2015 2014 Net income (loss) 259 1,599 607 Less: Net income (loss) attributable to non-controlling 59 73 68 Net income (loss) attributable to stockholders 200 1,526 539 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 338,477 239,764 237,954 Plus incremental shares from assumed conversion of: Options 1) 5,582 6,194 6,753 Restricted Share Units, Performance Share Units and Equity Rights 2) 3,548 4,158 3,902 Warrants 3) — — — Dilutive potential common share 9,130 10,352 10,655 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1) 347,607 250,116 248,609 EPS attributable to stockholders in $: Basic net income (loss) 0.59 6.36 2.27 Diluted net income (loss) 0.58 6.10 2.17 1) Stock options to purchase up to 1.4 million shares of NXP’s common stock that were outstanding in 2016 (2015: 0.7 million shares; 2014: 0.5 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. 2) Unvested RSU’s, PSU’s and equity rights of 0.9 million shares that were outstanding in 2016 (2015: 0.5 million shares; 2014: 1.2 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSU’s, PSU’s and equity rights or the performance goal has not been met. 3) Warrants to purchase up to 11.2 million shares of NXP’s common stock at a price of $133.32 per share were outstanding in 2016 (2015: 11.2 million shares at a price of $133.32; 2014: nil). Upon exercise, the warrants will be net share settled. At the end of 2016 and 2015, the warrants were not included in the computation of diluted EPS because the warrants’ exercise price was greater than the average fair market value of the common shares. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | 9 Share-based Compensation Share-based compensation expense is included in the following line items in our statement of operations: 2016 2015 2014 Cost of revenue 49 15 10 Research and development 123 45 20 Selling, general and administrative 166 156 103 338 216 133 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 A charge of $331 million was recorded in 2016 for the LTIP (2015: $206 million; 2014: $123 million). A summary of the activity for our LTIP’s during 2016 is presented below. Stock options The options have a strike price equal to the closing share price on the grant date. The fair value of the options has been calculated using the Black-Scholes formula, using the following assumptions: • an expected life varying from 5.76 to 6.25 years, calculated in accordance with the guidance provided in SEC Staff bulletin No. 110 for plain vanilla options using the simplified method, since our equity shares have been publicly traded for only a limited period of time and we do not have sufficient historical exercise data; • a risk-free interest rate varying from 0.8% to 2.8% (2015: 0.8% to 2.8%; 2014: 0.8% to 2.8%); • no expected dividend payments; and • a volatility of 40-50% Changes in the assumptions can materially affect the fair value estimate. Stock options Weighted average price in USD Weighted average Aggregate intrinsic Outstanding at January 1, 2016 10,034,650 38.53 Granted 108,419 80.44 Exercised 2,734,739 32.12 Forfeited 239,678 54.81 Outstanding at December 31, 2016 7,168,652 41.07 6.0 408 Exercisable at December 31, 2016 4,857,680 30.97 5.5 326 The weighted average per share grant date fair value of stock options granted in 2016 was $34.59 (2015: $34.05; 2014: $29.10). The intrinsic value of the exercised options was $145 million (2015: $112 million; 2014: $129 million), whereas the amount received by NXP was $88 million (2015: $39 million; 2014: $55 million). At December 31, 2016, there was a total of $56 million (2015: $110 million) of unrecognized compensation cost related to non-vested Performance share units Financial performance conditions Shares Weighted average grant in USD Outstanding at January 1, 2016 775,324 49.68 Granted 32,716 82.53 Vested 398,951 30.00 Forfeited 375 49.60 Outstanding at December 31, 2016 408,714 71.52 The weighted average grant date fair value of performance share units granted in 2016 was $82.53 (2015: $75.28; 2014: $62.29). Market performance conditions Shares Weighted average grant in USD Outstanding at January 1, 2016 1,905,269 26.85 Granted — — Vested 1,580,086 27.28 Forfeited — — Outstanding at December 31, 2016 325,183 38.63 The fair value of the performance share units at the time of vesting was $147 million (2015: $66 million; 2014: $70 million). At December 31, 2016, there was a total of $12 million (2015: $32 million) of unrecognized compensation cost related to non-vested Restricted share units Shares Weighted average grant Outstanding at January 1, 2016 8,237,861 78.03 Granted 2,739,672 98.16 Vested 3,688,422 75.61 Forfeited 368,232 76.00 Outstanding at December 31, 2016 6,920,879 87.48 The weighted average grant date fair value of restricted share units granted in 2016 was $98.16 (2015: $79.22; 2014: $63.42). The fair value of the restricted share units at the time of vesting was $334 million (2015: $209 million; 2014: $110 million). At December 31, 2016, there was a total of $422 million (2015: $432 million) of unrecognized compensation cost related to non-vested Management Equity Stock Option Plan (“MEP”) Awards are no longer available under these plans. Current employees owning vested MEP Options may exercise such MEP Options during the five year period subsequent to September 18, 2013, subject to these employees remaining employed by us and subject to the applicable laws and regulations. No charge was recorded in 2016 (2015: no charge, 2014: no charge) for options granted under the MEP. The following table summarizes the information about NXP’s outstanding MEP Options and changes during 2016. Stock options Stock options Weighted average Weighted average Aggregate intrinsic Outstanding at January 1, 2016 2,748,942 24.14 Granted — — Exercised 214,670 29.64 Forfeited — — Expired — — Outstanding at December 31, 2016 2,534,272 23.67 1.7 177 Exercisable at December 31, 2016 2,534,272 23.67 1.7 177 The intrinsic value of exercised options was $13 million (2015: $12 million; 2014: $74 million), whereas the amount received by NXP was $7 million (2015: $4 million; 2014: $86 million). The number of vested options at December 31, 2016 was 2,534,272 (2015: 2,748,942 vested options) with a weighted average exercise price of €23.67 (2015: €24.14 weighted average exercise price). At December 31, 2016, there was no unrecognized compensation cost related to non-vested |
Accounts Receivables, net
Accounts Receivables, net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivables, net | 10 Accounts Receivables, net Accounts receivable are summarized as follows: 2016 2015 Accounts receivable from third parties 1,035 1,048 Allowance for doubtful accounts (2 ) (1 ) 1,033 1,047 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | 11 Inventories, net Inventories are summarized as follows: 2016 2015 Raw materials 52 66 Work in process 854 1,376 Finished goods 207 437 1,113 1,879 The portion of finished goods stored at customer locations under consignment amounted to $53 million as of December 31, 2016 (2015: $69 million). The amounts recorded above are net of an allowance for obsolescence of $84 million as of December 31, 2016 (2015: $84 million). |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | 12 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) 2016 2015 Land 111 160 Buildings 9 to 50 1,153 854 Machinery and installations 2 to 10 3,006 4,156 Other Equipment 1 to 5 278 227 Prepayments and construction in progress 118 108 4,666 5,505 Less accumulated depreciation (2,314 ) (2,583 ) Property, plant and equipment, net of accumulated depreciation 2,352 2,922 Land with a book value of $111 million (2015: $160 million) is not depreciated. There was no significant construction in progress and therefore no related capitalized interest. |
Identified Intangible Assets
Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | 13 Identified Intangible Assets The changes in identified intangible assets were as follows: Total Other intangible Software Balance as of January 1, 2015: Cost 1,866 1,715 151 Accumulated amortization/impairment (1,293 ) (1,207 ) (86 ) Book value 573 508 65 Changes in book value: Acquisitions/additions 8,551 8,543 8 Transfer to assets held for sale (38 ) (38 ) — Amortization (255 ) (229 ) (26 ) Translation differences (41 ) (35 ) (6 ) Total changes 8,217 8,241 (24 ) Balance as of December 31, 2015: Cost 9,978 9,832 146 Accumulated amortization/impairment (1,188 ) (1,083 ) (105 ) Book value 8,790 8,749 41 Changes in book value: Acquisitions/additions 299 289 10 Transfer to assets held for sale (138 ) (138 ) — Amortization (1,507 ) (1,483 ) (24 ) Impairment (89 ) (89 ) — Translation differences (12 ) (10 ) (2 ) Total changes (1,447 ) (1,431 ) (16 ) Balance as of December 31, 2016: Cost 9,512 9,397 115 Accumulated amortization/impairment (2,169 ) (2,079 ) (90 ) Book value 7,343 7,318 25 Identified intangible assets as of December 31, 2016 and 2015 respectively were composed of the following: December 31, 2016 December 31, 2015 Gross carrying Accumulated Gross carrying Accumulated IPR&D 1) 1,380 — 2,016 — Marketing-related 81 (18 ) 119 (18 ) Customer-related 1,146 (322 ) 1,287 (224 ) Technology-based 6,790 (1,739 ) 6,410 (841 ) 9,397 (2,079 ) 9,832 (1,083 ) Software 115 (90 ) 146 (105 ) Identified intangible assets 9,512 (2,169 ) 9,978 (1,188 ) 1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort. The estimated amortization expense for these identified intangible assets, excluding software, for each of the five succeeding years is: 2017 1,423 2018 1,432 2019 1,472 2020 1,190 2021 462 All intangible assets, excluding goodwill, are subject to amortization and have no assumed residual value. The expected weighted average remaining life of identified intangibles is 5 years as of December 31, 2016. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 14 Goodwill The changes in goodwill in 2016 and 2015 were as follows: 2016 2015 Balances as of January 1 Cost 9,414 2,328 Accumulated impairment (186 ) (207 ) Book value 9,228 2,121 Changes in book value: Acquisitions 14 7,464 Purchase accounting adjustments related to Freescale acquisition (25 ) — Transfer to assets held for sale (349 ) (179 ) Translation differences (25 ) (178 ) Total changes (385 ) 7,107 Balances as of December 31 Cost 9,029 9,414 Accumulated impairment (186 ) (186 ) Book value 8,843 9,228 No goodwill impairment charges were required to be recognized in 2016 or 2015. In 2016, goodwill includes $14 million related to an acquisition of a business for $200 million. In 2015, goodwill includes the acquisitions of Freescale, Quintic’s Bluetooth Low Energy and Wearable businesses and Athena SCS Ltd. Transfer to assets held for sale in 2016 includes our SP business, which closed in the first quarter of 2017. In 2015, transfer to assets held for sale includes our RF Power Business and Bipolar Power business, which were subsequently divested. The fair value of the reporting units substantially exceeds the carrying value of the reporting units. See note 23, “Segments and Geographical Information”, for goodwill by segment and note 3, “Acquisitions and Divestments”. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 15 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 1,300 companies and 616,000 participants. The plan monitors its risk on an aggregate basis, not by company or participant and can therefore not be accounted for as a defined benefit plan. The pension fund rules state that the only obligation for affiliated companies will be to pay the annual plan contributions. There is no obligation for affiliated companies to fund plan deficits. Affiliated companies are also not entitled to any possible surpluses in the pension fund. Every participating company contributes the same fixed percentage of its total pension base, being pensionable salary minus an individual offset. The Company’s pension cost for any period is the amount of contributions due for that period. The contribution rate for the mandatory scheme will decrease from 26.1% (2016) to 25.8% (2017). PME multi-employer plan 2016 2015 2014 NXP’s contributions to the plan 36 37 48 (including employees’ contributions) 4 4 4 Average number of NXP’s active employees participating in the plan 2,415 2,668 2,881 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 2016 was $102 million (2015: $69 million; 2014: $77 million) of which $44 million (2015: $21 million; 2014: $21 million) represents defined-contribution plans and $32 million (2015: $32 million; 2014: $41 million) represents the PME multi-employer plans. Defined-benefit plans The benefits provided by defined-benefit plans are based on employees’ years of service and compensation levels. Contributions are made by the Company, as necessary, to provide assets sufficient to meet the benefits payable to defined-benefit pension plan participants. These contributions are determined based upon various factors, including funded status, legal and tax considerations as well as local customs. The Company funds certain defined-benefit pension plans as claims are incurred. The total cost of defined-benefit plans amounted to $26 million in 2016 (2015: $16 million; 2014: $15 million) consisting of $27 million ongoing cost (2015: $20 million; 2014: $15 million) and a gain of $1 million from special events resulting from restructurings, curtailments and settlements (2015: $4 million; 2014: nil). The table below provides a summary of the changes in the pension benefit obligations and defined-benefit pension plan assets for 2016 and 2015, 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. 2016 2015 Projected benefit obligation Projected benefit obligation at beginning of year 561 447 Service cost 17 12 Interest cost 14 11 Actuarial (gains) and losses 53 (18 ) Curtailments and settlements (15 ) (16 ) Benefits paid (21 ) (14 ) Pension liabilities held-for-sale (28 ) — Benefit obligation assumed in acquisitions — 177 Exchange rate differences (17 ) (38 ) Projected benefit obligation at end of year 564 561 Plan assets Fair value of plan assets at beginning of year 190 157 Actual return on plan assets 3 7 Employer contributions 21 10 Curtailments and settlements (15 ) (12 ) Benefits paid (21 ) (14 ) Pension assets held-for-sale (2 ) — Plan assets acquired in acquisitions — 56 Exchange rate differences (4 ) (14 ) Fair value of plan assets at end of year 172 190 Funded status (392 ) (371 ) Classification of the funded status is as follows - Prepaid pension cost within other non-current — 4 - Accrued pension cost within other non-current (380 ) (368 ) - Accrued pension cost within accrued liabilities (12 ) (7 ) Total (392 ) (371 ) Accumulated benefit obligation Accumulated benefit obligation for all Company-dedicated benefit pension plans 524 518 Plans with assets less than accumulated benefit obligation Funded plans with assets less than accumulated benefit obligation - Fair value of plan assets 171 73 - Accumulated benefit obligations 327 209 - Projected benefit obligations 357 243 Unfunded plans - Accumulated benefit obligations 195 196 - Projected benefit obligations 204 204 Amounts recognized in accumulated other comprehensive income (before tax) Total AOCI at beginning of year 42 70 - Net actuarial loss (gain) 54 (21 ) - Exchange rate differences (5 ) (7 ) Total AOCI at end of year 91 42 The weighted average assumptions used to calculate the projected benefit obligations were as follows: 2016 2015 Discount rate 2.0 % 2.5 % Rate of compensation increase 1.9 % 2.2 % The weighted average assumptions used to calculate the net periodic pension cost were as follows: 2016 2015 2014 Discount rate 2.5 % 2.6 % 3.7 % Expected returns on plan assets 3.5 % 4.2 % 4.2 % Rate of compensation increase 2.2 % 1.8 % 2.3 % For the Company’s major plans, the discount rate used is based on high quality corporate bonds (iBoxx Corporate Euro AA 10+). Plans in countries without a deep corporate bond market use a discount rate based on the local sovereign rate and the plans maturity (Bloomberg Government Bond Yields). Expected returns per asset class are based on the assumption that asset valuations tend to return to their respective long-term equilibria. The Expected Return on Assets for any funded plan equals the average of the expected returns per asset class weighted by their portfolio weights in accordance with the fund’s strategic asset allocation. The components of net periodic pension costs were as follows: 2016 2015 2014 Service cost 17 12 10 Interest cost on the projected benefit obligation 14 11 13 Expected return on plan assets (6 ) (6 ) (7 ) Amortization of net (gain) loss 2 3 (1 ) Curtailments & settlements (1 ) (6 ) — Other — 2 — Net periodic cost 26 16 15 A sensitivity analysis shows that if the discount rate increases by 1% from the level of December 31, 2016, with all other variables held constant, the net periodic pension cost would decrease by $4 million. If the discount rate decreases by 1% from the level of December 31, 2016, with all other variables held constant, the net periodic pension cost would increase by $3 million. The estimated net actuarial loss (gain) and prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next year (2017) are $2 million and nil respectively. Plan assets The actual pension plan asset allocation at December 31, 2016 and 2015 is as follows: 2016 2015 Asset category: Equity securities 29 % 29 % Debt securities 52 % 55 % Insurance contracts 7 % 6 % Other 12 % 10 % 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 $172 million include $161 million related to the German and Japanese pension funds. The following table summarizes the classification of these assets. 2016 2015 Level I Level II Level III Level I Level II Level III Equity securities — 48 — — 49 — Debt securities 9 72 — 7 81 — Insurance contracts — 12 — — 12 — Other 5 11 4 3 10 3 14 143 4 10 152 3 The Company currently expects to make $11 million of employer contributions to defined-benefit pension plans and $6 million of expected cash payments in relation to unfunded pension plans. Estimated future pension benefit payments The following benefit payments are expected to be made (including those for funded plans): 2017 21 2018 16 2019 17 2020 18 2021 20 Years 2022-2026 128 Postretirement health care benefits In addition to providing pension benefits, NXP provides retiree healthcare benefits in the US and the UK which are accounted for as defined-benefit plans. The accumulated postretirement benefit obligation at the end of 2016 equals $18 million (2015: $54 million). |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 16 Debt Short-term debt 2016 2015 Short-term bank borrowings — 6 Current portion of long-term debt (*) 421 550 Total 421 556 (*) Net of adjustment for debt issuance costs. At December 31, 2015, short-term bank borrowings of $6 million consisted of a local bank borrowing by our Chinese subsidiary. The applicable weighted average interest rate during 2015 was 2.5%. Long-term debt The following table summarizes the outstanding long-term debt as of December 31, 2016 and 2015: 2016 2015 Maturities Amount Effective Amount Effective Floating-rate term loan Mar, 2017 388 2.770 392 2.750 Floating-rate term loan Jan, 2020 387 3.270 391 3.250 Floating-rate term loan Dec, 2020 1,436 3.270 2,700 3.750 Fixed-rate 3.5% senior unsecured notes Sep, 2016 — — 500 3.500 Fixed-rate 3.75% senior unsecured notes Jun, 2018 750 3.750 750 3.750 Fixed-rate 4.125% senior unsecured notes Jun, 2020 600 4.125 600 4.125 Fixed-rate 4.125% senior unsecured notes Jun, 2021 1,350 4.125 — — Fixed-rate 5.75% senior unsecured notes Feb, 2021 500 5.750 500 5.750 Fixed-rate 5% senior secured notes May, 2021 — — 500 5.000 Fixed-rate 3.875% senior unsecured notes Sep, 2022 1,000 3.875 — — Fixed-rate 6% senior secured notes Jan, 2022 — — 960 6.000 Fixed-rate 4.625% senior unsecured notes Jun, 2022 400 4.625 400 4.625 Fixed-rate 5.75% senior unsecured notes Mar, 2023 500 5.750 500 5.750 Fixed-rate 4.625% senior unsecured notes Jun, 2023 900 4.625 — — Fixed-rate 1% cash convertible notes Dec, 2019 1,150 1.000 1,150 1.000 Floating-rate revolving credit facility Dec, 2020 — — — — Total principal 9,361 9,343 Liabilities arising from capital lease transactions 15 31 Unamortized discounts, premiums and debtissuance costs (61 ) (82 ) Fair value of embedded cash conversion option (128 ) (167 ) Purchase accounting fair value adjustmentFreescale Senior Secured Notes — 81 Total debt, including unamortized discounts,premiums, debt issuance costs and fair value adjustments 9,187 9,206 Current portion of long-term debt (421 ) (550 ) Long-term debt 8,766 8,656 Range of Average Principal 2016 Due in Due Due after Average (in years) Principal USD notes 2.8%-5.8% 4.1 % 8,211 406 7,805 2,800 4.2 8,193 2019 Cash Convertible Senior Notes 1.0%-1.0% 1.0 % 1,150 — 1,150 — 2.9 1,150 Revolving Credit Facility (1) — — — — — — — — Bank borrowings — — — — — — — — Liabilities arising from capital lease transactions 2.5%-13.8% 3.0 % 15 15 — — 1.3 31 3.7 % 9,376 421 8,955 2,800 4.1 9,374 (1) We do not have any borrowings under the $600 million Revolving Credit Facility as of December 31, 2016. As of December 31, 2016, the following principal amounts of long-term debt are due in the next 5 years: 2017 421 2018 768 2019 1,167 2020 2,370 2021 1,850 Due after 5 years 2,800 9,376 As of December 31, 2016, the book value of our outstanding long-term debt was $8,766 million, less debt issuance costs of $61 million and less original issuance/debt discount of $128 million. As of December 31, 2016, the fixed rate notes and floating rate notes represented 76% and 24% respectively of the total principal amount of the notes outstanding at December 31, 2016. The remaining tenor of secured debt is on average 4.1 years. Accrued interest as of December 31, 2016 is $48 million (December 31, 2015: $46 million). 2016 Financing Activities 2020 Term Loan On September 22, 2016, NXP entered into a new $1,440 million aggregate principal amount Senior Secured Term Loan Facility due December 7, 2020. Concurrently, NXP repaid the $1,440 million principal amount Senior Secured Term Loan Facility due December 7, 2020. 2022 Senior Unsecured Notes On August 11, 2016, NXP B.V., together with NXP Funding LLC, issued U.S. dollar-denominated 3.875% Senior Unsecured Notes with an aggregate principal amount of $1,000 million, due September 1, 2022. The interest is payable semi-annually on March 1 and September 1 of each year, beginning on March 1, 2017. The Notes were issued at par and were recorded at their fair value of $1,000 million on the accompanying Consolidated Balance Sheet. NXP used the net proceeds from the offering of the Notes to redeem the remaining $960 million aggregate principal amount of its outstanding Senior Secured Notes due 2022 and to pay for certain costs and expenses related thereto. 2021 Additional Senior Unsecured Notes On August 1, 2016, NXP B.V., together with NXP Funding LLC, issued an aggregate principal amount of $500 million of 4.125% Senior Unsecured Notes due 2021 (the “Additional Notes”). The Additional Notes were issued at a price of 101.875% and are of the same class as the existing 4.125% Senior Notes due 2021 originally issued on May 23, 2016. NXP used the net proceeds from the offering of the Additional Notes to redeem $200 million aggregate principal amount of its outstanding Senior Notes due 2016 and used the remainder of the proceeds for general corporate purposes. 2021 and 2023 Senior Unsecured Notes On May 23, 2016, NXP B.V. together with NXP Funding LLC issued U.S. dollar-denominated 4.125% and 4.625% Senior Unsecured Notes with aggregate principal amounts of $850 million, due June 1, 2021 and $900 million, due June 1, 2023. The interest is payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2016. These Notes were issued at par and were recorded at their fair value of $850 million and $900 million, respectively, on the accompanying Consolidated Balance Sheet. NXP used the net proceeds from the offering of the Notes and cash on hand to repay $1,250 million aggregate principal amount of its existing Secured Term Loan B due 2020 and $500 million aggregate principal amount of its outstanding Senior Secured Notes due 2021. 2016 Senior Unsecured Notes On February 23, April 27 and August 1, 2016, NXP B.V., together with NXP Funding LLC, issued redemption notices for an aggregate principal amount of $200 million, $100 million and $200 million, respectively, of its outstanding 3.5% Senior Unsecured Notes due 2016. The funds from this redemption came from available surplus cash. Certain terms and Covenants of the U.S. dollar-denominated notes The Company is not required to make mandatory redemption payments or sinking fund payments with respect to the notes. With respect to the Term Loans, the Company is required to repay $18 million annually. 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. Certain portions of long-term and short-term debt as of December 31, 2016 in the principal amount of $2,211 million (2015: $4,943 million) have been secured by collateral on substantially all of the Company’s assets and of certain of its subsidiaries. Each series of the Senior Unsecured Notes are fully and unconditionally guaranteed jointly and severally, on a senior basis by certain of the Company’s current and future material wholly owned subsidiaries (“Guarantors”). Pursuant to various security documents related to the above mentioned term loans and the $600 million committed revolving credit facility, the Company and each Guarantor has granted first priority liens and security interests in, amongst others, the following, subject to the grant of further permitted collateral liens: (a) all present and future shares of capital stock of (or other ownership or profit interests in) each of its present and future direct subsidiaries, other than SMST Unterstützungskasse GmbH, and material joint venture entities; (b) all present and future intercompany debt of the Company and each Guarantor; (c) all of the present and future property and assets, real and personal, of the Company, and each Guarantor, including, but not limited to, machinery and equipment, inventory and other goods, accounts receivable, owned real estate, leaseholds, fixtures, general intangibles, license rights, patents, trademarks, trade names, copyrights, chattel paper, insurance proceeds, contract rights, hedge agreements, documents, instruments, indemnification rights, tax refunds, but excluding cash and bank accounts; and (d) all proceeds and products of the property and assets described above. Notwithstanding the foregoing, certain assets may not be pledged (or the liens not perfected) in accordance with agreed security principles, including: • if the cost of providing security is not proportionate to the benefit accruing to the holders; and • if providing such security requires consent of a third party and such consent cannot be obtained after the use of commercially reasonable efforts; and • if providing such security would be prohibited by applicable law, general statutory limitations, financial assistance, corporate benefit, fraudulent preference, “thin capitalization” rules or similar matters or providing security would be outside the applicable pledgor’s capacity or conflict with fiduciary duties of directors or cause material risk of personal or criminal liability after using commercially reasonable efforts to overcome such obstacles; and • if providing such security would have a material adverse effect (as reasonably determined in good faith by such subsidiary) on the ability of such subsidiary to conduct its operations and business in the ordinary course as otherwise permitted by the indenture; and • if providing such security or perfecting liens thereon would require giving notice (i) in the case of receivables security, to customers or (ii) in the case of bank accounts, to the banks with whom the accounts are maintained. Such notice will only be provided after the secured notes are accelerated. Subject to agreed security principles, if material property is acquired by the Company or a Guarantor that is not automatically subject to a perfected security interest under the security documents, then the Company or relevant Guarantor will within 60 days provide security over this property and deliver certain certificates and opinions in respect thereof as specified in the indenture governing the notes. 2019 Cash Convertible Senior Notes In November 2014, NXP issued $1,150 million principal amount of its 2019 Cash Convertible Senior Notes (the “Notes”). The 2019 Cash Convertible Senior Notes have a stated interest rate of 1.00%, matures on December 1, 2019 and may be settled only in cash. The indenture for the 2019 Cash Convertible Senior Notes does not contain any financial covenants. Contractual interest payable on the 2019 Cash Convertible Senior Notes began accruing in December 2014 and is payable semi-annually each December 1 st st Prior to September 1, 2019, holders may convert their 2019 Cash Convertible Senior Notes into cash upon the occurrence of one of the following events: • the price of NXP’s common stock reaches 130% of the conversion price on each applicable trading day during certain periods of time specified in the 2019 Cash Convertible Senior Notes; • specified corporate transactions occur; or • the trading price of the 2019 Cash Convertible Senior Notes falls below 98% of the product of (i) the last reported sales price of NXP’s common stock and (ii) the conversion rate on the date. On or after September 1, 2019, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2019 Cash Convertible Senior Notes into cash at any time, regardless of the foregoing circumstances. NXP may not redeem the 2019 Cash Convertible Senior Notes prior to maturity. The initial cash conversion rate for the 2019 Cash Convertible Senior Notes is 9.7236 shares of NXP’s common stock per $1,000 principal amount of 2019 Cash Convertible Senior Notes, equivalent to a cash conversion price of $102.84 per share of NXP’s common stock, with the amount due on conversion payable in cash. Upon cash conversion, a holder will receive the sum of the daily settlement amounts, calculated on a proportionate basis for each day, during a specified observation period following the cash conversion date. If a “fundamental change” (as defined below in this section) occurs at any time, holders will have the right, at their option, to require us to repurchase for cash all of their 2019 Cash Convertible Senior Notes, or any portion of the principal thereof that is equal to $1,000 or a multiple of $1,000 (provided that the portion of any global note or certified note, as applicable, not tendered for repurchase has a principal amount of at least $200,000, on the fundamental change repurchase date. A fundamental change is any transaction or event (whether by means of an exchange offer, change of common stock, liquidation, consolidation, merger, reclassification, recapitalization or otherwise) in which more than 50% of NXP’s common stock is exchanged for, converted into, acquired for or constitutes solely the right to receive, consideration. A transaction or transactions described above will not constitute a fundamental change, however, if at least 90% of the consideration received or to be received by our common shareholders, excluding cash payments for fractional shares, in connection with such transaction or transactions consists of shares of common equity that are listed or quoted on any permitted exchange or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions and as a result of such transaction or transactions such consideration becomes the reference property for the 2019 Cash Convertible Senior Notes. As of December 31, 2016, none of the conditions allowing the holders of the 2019 Cash Convertible Senior Notes to convert the 2019 Cash Convertible Senior Notes into cash had been met. The requirement that NXP must settle the conversion of the Notes in cash gives rise to a derivative instrument that must be bifurcated from the debt host. The embedded cash conversion option within the Cash Convertible Notes is required to be separated from the Cash Convertible Notes and accounted for separately as a derivative liability, with changes in fair value reported in our Consolidated Statements of Income in other (expense) income, net until the cash conversion option settles or expires. The initial fair value liability of the embedded cash conversion option simultaneously reduced the carrying value of the Cash Convertible Notes (effectively an original issuance discount). The embedded cash conversion option is measured and reported at fair value on a recurring basis, within Level 3 of the fair value hierarchy. The fair value of the embedded cash conversion option at December 31, 2016 was $258 million (2015: $241 million) which is recorded in other long-term liabilities in the accompanying balance sheet. For the year ended December 31, 2016, the change in the fair value of the embedded cash conversion option resulted in a loss of $17 million (2015: a loss of $38 million). Concurrently with the pricing of the 2019 Cash Convertible Senior Notes, NXP entered into hedge transactions, or the Notes Hedges, with various parties whereby NXP has the option to receive the cash amount that may be due to the Notes holders at maturity in excess of the $1,150 million principal amount of the notes, subject to certain conversion rate adjustments in the Notes Indenture. These options expire on December 1, 2019, and must be settled in cash. The aggregate cost of the Notes Hedges was $208 million. The Notes Hedges are accounted for as derivative assets, and are included in Other assets in NXP’s Consolidated Balance Sheet. As of December 31, 2016, the estimated fair value of the Notes Hedges was $258 million (2015: $241 million). The Notes Embedded Conversion Derivative and the Notes Hedges are adjusted to fair value each reported period and unrealized gains and losses are reflected in NXP’s Consolidated Statements of Operations. Because the fair values of the Notes Embedded Conversion Derivative and the Notes Hedges are designed to have similar offsetting values, there was no impact to NXP’s Consolidated Statements of Operations relating to these adjustments to fair value during fiscal 2016 (2015: no impact). In separate transactions, NXP also sold warrants, to various parties for the purchase of up to 11.18 million shares of NXP’s common stock at a strike price of $133.32 per share in a private placement pursuant to Section 4(2) of the Securities Act of 1933, as amended, or the Securities Act. The Warrants expire on various dates from March 2, 2020, through April 30, 2020, and will be net share settled. NXP received $134 million in cash proceeds from the sale of the Warrants, which were at the time of issuance recorded in Other non-current mark-to-market The principal amount, unamortized debt discount and net carrying amount of the liability component of the 2019 Cash Convertible Senior Notes as of December 31, 2016 and 2015 was as follows: (in millions) As of December 31 2016 2015 Principal amount of 2019 Cash Convertible Senior Notes 1,150 1,150 Unamortized debt discount of 2019 Cash Convertible Senior Notes 136 178 Net liability of 2019 Cash Convertible Senior Notes 1,014 972 The effective interest rate, contractual interest expense and amortization of debt discount for the 2019 Cash Convertible Senior Notes for fiscal 2016 and 2015 were as follows: (in millions, except percentage) 2016 2015 Effective interest rate 5.14 % 5.14 % Contractual interest expense 12 12 Amortization of debt discount 40 38 As of December 31, 2016, the if-converted Impact of Conversion Contingencies on Financial Statements At the end of each quarter until maturity of the 2019 Cash Convertible Senior Notes, NXP will reassess whether the stock price conversion condition has been satisfied. If one of the early conversion conditions is satisfied in any future quarter, NXP would classify its net liability under the 2019 Cash Convertible Senior Notes as a current liability on the Consolidated Balance Sheet as of the end of that fiscal quarter. If none of the early conversion conditions have been satisfied in a future quarter prior to the one-year non-current |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17 Commitments and Contingencies Lease Commitments At December 31, 2016 and 2015, there were no material capital lease obligations. Long-term operating lease commitments totaled $113 million as of December 31, 2016 (2015: $172 million). The long-term operating leases are mainly related to the rental of buildings and tools. These leases expire at various dates during the next 30 years. Future minimum lease payments under operating leases are as follows: 2017 33 2018 23 2019 17 2020 12 2021 5 Thereafter 23 Total future minimum leases payments 113 Rent expense amounted to $68 million in 2016 (2015: $70 million; 2014: $63 million). Purchase Commitments The Company maintains purchase commitments with certain suppliers, primarily for raw materials, semi finished goods and manufacturing services and for some non-production 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. 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. 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 approximately $22 million accrued for legal proceedings pending as of December 31, 2016, compared to approximately $28 million as of December 31, 2015. The accruals are included in “Accrued liabilities” and “Other non-current The Company also estimates the aggregate range of reasonably possible losses in excess of the amount accrued based on currently available information for those cases for which such estimate can be made. The estimated aggregate range requires significant judgment, given the varying stages of the proceedings (including the fact that many of them are currently in preliminary stages), the existence of multiple defendants (including the Company) in such claims whose share of liability has yet to be determined, the numerous yet-unresolved Intellectual property litigation and infringement claims could cause us to incur significant expenses or prevent us from selling our products. The resolution of intellectual property litigation may require us to pay damages for past infringement or to obtain a license under the other party’s intellectual property rights that could require one-time In addition, the Company is currently assisting Motorola in the defense of eight personal injury lawsuits due to indemnity obligations included in the agreement that separated Freescale from Motorola in 2004. The multi-plaintiff 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 53 individuals. The eight suits allege exposures that occurred between 1965 and 2006. Each suit seeks an unspecified amount of damages in compensation for the alleged injuries; however, each plaintiff will likely seek substantial compensatory and punitive damages from Motorola 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 denied liability for these alleged injuries based on numerous defenses. 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. Motorola has no insurance coverage for a potential punitive damage award. We are in discussions with Motorola and their insurers regarding the availability of applicable insurance coverage for each of the individual cases. Environmental remediation In each jurisdiction in which we operate, we are subject to many environmental, health and safety laws and regulations that govern, among other things, emissions of pollutants into the air, wastewater discharges, the use and handling of hazardous substances, waste disposal, the investigation and remediation of soil and ground water contamination and the health and safety of our employees. We are also required to obtain environmental permits from governmental authorities for certain of our operations. As with other companies engaged in similar activities or that own or operate real property, the Company faces inherent risks of environmental liability at our current and historical manufacturing facilities. Certain environmental laws impose liability on current or previous owners or operators of real property for the cost of removal or remediation of hazardous substances. Certain of these laws also assess liability on persons who arrange for hazardous substances to be sent to disposal or treatment facilities when such facilities are found to be contaminated. Soil and groundwater contamination has been identified at our properties in Hamburg, Germany and 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, 2016 we have recorded $84 million for environmental remediation costs, which are primarily included in other non-current |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 18 Stockholders’ Equity The share capital of the Company as of December 31, 2016 and 2015 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. At December 31, 2016, the Company has issued and paid up 346,002,862 shares (2015: 346,002,862 shares) of common stock each having a par value of €0.20 or a nominal stock capital of €69 million. 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 9, “Share-based Compensation”. Treasury shares In connection with the Company’s share repurchase programs, which originally commenced in 2011, and which were extended effective August 1, 2013 and February 6, 2014, and 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 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 in 2016: 2016 Total shares in treasury at beginning of year 3,998,982 Total cost 342 Shares acquired under repurchase program 15,537,868 Average price in $ per share 82.36 Amount paid 1,280 Shares delivered 8,926,870 Average price in $ per share 79.25 Amount received 115 Total shares in treasury at end of year 10,609,980 Total cost 915 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 19 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 Net Currency Change in fair Net actuarial Unrealized available-for sale Accumulated Other As of December 31, 2014 (331 ) 627 (2 ) (85 ) 1 210 Other comprehensive income (loss) before reclassifications (190 ) 131 (2 ) 28 (1 ) (34 ) Amounts reclassified out of accumulated other comprehensive income (loss) — — 2 — — 2 Tax effects — — — 3 — 3 Other comprehensive income (loss) (190 ) 131 — 31 (1 ) (29 ) As of December 31, 2015 (521 ) 758 (2 ) (54 ) — 181 Reclassification 521 (521 ) — Other comprehensive income (loss) before reclassifications — (124 ) — (22 ) 6 (140 ) Amounts reclassified out of accumulated other comprehensive income (loss) — — (1 ) — — (1 ) Tax effects — — 1 (5 ) (2 ) (6 ) Other comprehensive income (loss) — (124 ) — (27 ) 4 (147 ) As of December 31, 2016 — 113 (2 ) (81 ) 4 34 |
Related-party Transactions
Related-party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related-party Transactions | 20 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., equity-accounted investees and Qualcomm Incorporated. Other We have a number of strategic alliances and joint ventures. We have relationships with certain of our alliance partners in the ordinary course of business whereby we enter into various sale and purchase transactions, generally on terms comparable to transactions with third parties. However, in certain instances upon divestment of former businesses where we enter into supply arrangements with the former owned business, sales are conducted at cost. The following table presents the amounts related to revenue and expenses incurred in transactions with these related parties: 2016 2015 2014 Revenue 59 8 11 Purchase of goods and services 116 85 103 The following table presents the amounts related to receivable and payable balances with these related parties: 2016 2015 Receivables 13 24 Payables 29 24 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 21 Fair Value of Financial Assets and Liabilities The following table summarizes the estimated fair value and carrying amount of our financial instruments measured on a recurring basis: December 31, 2016 December 31, 2015 Fair value Carrying Estimated Carrying Estimated Assets: Notes hedges 3 1) 258 258 241 241 Other financial assets 2 40 40 47 47 Derivative instruments-assets 2 3 3 2 2 Liabilities: Short-term debt 2 (15 ) (15 ) (22 ) (22 ) Short-term debt (bonds) 2 (406 ) (406 ) (534 ) (535 ) Long-term debt (bonds) 2 (7,752 ) (8,011 ) (7,669 ) (7,723 ) 2019 Cash Convertible Senior Notes 2 (1,014 ) (1,310 ) (972 ) (1,260 ) Other long-term debt 2 (1 ) (1 ) (15 ) (15 ) Notes Embedded Conversion Derivative 3 1) (258 ) (258 ) (241 ) (241 ) Warrants 2 — — (168 ) (168 ) Derivative instruments-liabilities 2 (6 ) (6 ) (4 ) (4 ) 1) During the fourth quarter of 2016, the Notes hedges and the Notes Embedded Conversion Derivative were transferred from level 2 to level 3 of the fair value hierarchy. The following methods and assumptions were used to estimate the fair value of financial instruments: Other financial assets and derivatives For other financial assets and derivatives the fair value is based upon significant other observable inputs depending on the nature of the other financial asset and derivative. Notes hedges and Notes Embedded Conversion Derivative At December 31, 2016, the Notes hedges and the Notes Embedded Conversion Derivative are measured at fair value using level 3 inputs. The instruments are not actively traded and are valued at the measurement date using an option pricing model that uses observable inputs for the share price of NXP’s common stock, the risk-free interest rate, dividend yield and the term, in combination with a significant unobservable input for volatility, that we determine based upon a hypothetical market place and is a factor of 32%-48%. Debt The fair value is estimated on the basis of observable inputs other than quoted prices in active markets for identical liabilities for certain issues, or on the basis of discounted cash flow analyses. Accrued interest is included under accrued liabilities and not within the carrying amount or estimated fair value of debt. Warrants At the time of the issuance of the 2019 Cash Convertible Senior Notes, NXP entered into separate warrant transactions with various parties for the purchase of up to 11.18 million shares of NXP’s common stock at a price of $133.32 per share in a private placement. The warrants expire on various dates from March 2, 2020, through April 30, 2020, and will be net share settled. NXP received $134 million in cash proceeds from the sale of the Warrants, which was recorded in other non-current mark-to-market Assets and liabilities recorded at fair value on a non-recurring We measure and record our non-marketable (non-marketable non-financial |
Other Financial Instruments, De
Other Financial Instruments, Derivatives and Currency Risk | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Other Financial Instruments, Derivatives and Currency Risk | 22 Other Financial Instruments, Derivatives and Currency Risk We conduct business in diverse markets around the world and employ a variety of risk management strategies and techniques to manage foreign currency exchange rate and interest rate risks. Our risk management program focuses on the unpredictability of financial markets and seeks to minimize the potentially adverse effects that the volatility of these markets may have on our operating results. One way we achieve this is through the active hedging of risks through the selective use of derivative instruments. Derivatives are recorded on our Consolidated Balance Sheets at fair value which fluctuates based on changing market conditions. The Company does not purchase or hold financial derivative instruments for trading purposes. Currency risk The Company’s transactions are denominated in a variety of currencies. The Company uses financial instruments to reduce its exposure to the effects of currency fluctuations. Accordingly, the Company’s organizations identify and measure their exposures from transactions denominated in other than their own functional currency. We calculate our net exposure on a cash flow basis considering balance sheet items, actual orders received or made and anticipated revenue and expenses. The Company generally hedges foreign currency exposures in relation to transaction exposures, such as receivables/payables resulting from such transactions and part of anticipated sales and purchases. The Company generally uses forwards to hedge these exposures. As of January 1, 2016, as a result of the acquisition of Freescale, NXP has concluded that the functional currency of the holding company is USD. Beginning from January 1, 2016, our U.S. dollar-denominated notes and short term loans will no longer need to be re-measured. |
Segments and Geographical Infor
Segments and Geographical Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segments and Geographical Information | 23 Segments and Geographical Information NXP is organized into two reportable segments, High Performance Mixed Signal (“HPMS”) and Standard Products (“SP”). Corporate and Other represents the remaining portion to reconcile to the Consolidated Financial Statements. Effective with the Merger, the operations of Freescale were primarily incorporated into the HPMS reportable segment. Our HPMS business segment delivers high performance mixed signal solutions to our customers to satisfy their system and sub-systems Because the Company meets the criteria for aggregation set forth under ASC 280 “Segment Reporting”, and the operating segments have similar economic characteristics, the Company aggregates the results of operations of the Automotive, Secure Identification Solutions, Secure Connected Devices and Secure Interfaces and Infrastructure operating segments into one reportable segment, HPMS, and the Standard Products and General Purpose Logic operating segments into another reportable segment, SP. Our Chief Executive Officer, who is our CODM, regularly reviews financial information at the reporting segment level in order to make decisions about resources to be allocated to the segments and to assess their performance. Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Asset information by segment is not provided to our CODM as the majority of our assets are used jointly or managed at corporate level. Arithmetical allocation of these assets to the various businesses is not deemed to be meaningful and as such total assets per segment has been omitted. Detailed information by segment for the years 2016, 2015 and 2014 is presented in the following tables. Revenue 2016 2015 2014 HPMS 8,086 4,720 4,208 SP 1,220 1,241 1,275 Corporate and Other (1) 192 140 164 9,498 6,101 5,647 Operating income (loss) 2016 2015 2014 HPMS (302 ) 1,885 983 SP 268 264 120 Corporate and Other (1) (116 ) (134 ) (54 ) (150 ) 2,015 1,049 (1) Corporate and Other is not a segment under ASC 280 “Segment Reporting”. Corporate and Other includes revenue related to Manufacturing Operations, unallocated expenses not related to any specific business segment and corporate restructuring charges. Goodwill assigned to segments Cost at January 1, Acquisitions Transfer to asset held for Translation Cost at HPMS 8,769 14 (6 ) (49 ) 8,728 SP 373 — (343 ) 2 32 Corporate and Other (1) 272 — — (3 ) 269 9,414 14 (349 ) (50 ) 9,029 See note 3 for further information regarding the acquisition of Freescale. Accumulated Translation differences Accumulated HPMS (154 ) — (154 ) SP (32 ) — (32 ) Corporate and Other (1) — — — (186 ) — (186 ) (1) Corporate and Other is not a segment under ASC 280 “Segment Reporting”. Geographical Information Revenue (1) Property, plant and equipment 2016 2015 2014 2016 2015 2014 China 3,882 3,135 2,756 251 360 116 Netherlands 285 177 171 183 161 169 United States 906 415 396 922 1,115 5 Singapore 984 526 452 166 186 200 Germany 623 392 450 52 98 80 Japan 550 316 245 1 2 1 South Korea 369 268 287 — 1 1 Malaysia 231 41 47 378 473 79 Other countries 1,668 831 843 399 526 472 9,498 6,101 5,647 2,352 2,922 1,123 (1) Revenue attributed to geographic areas is based on the customer’s shipped-to |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24 Subsequent Events NXP B.V. and NXP Funding LLC, subsidiaries of NXP, delivered notice on February 7, 2017 that it will pre-pay pre-payments Additionally, on February 7, 2017, NXP B.V., together with NXP Funding LLC, delivered notice to holders of its 5.75% Senior Notes due 2021 (the “Notes”) that it will redeem on March 9, 2017, $500 million of the outstanding aggregate principal amount of these Notes, which represents all of the outstanding aggregate principal amount of the Notes, as permitted under Article 3 of the indenture dated February 14, 2013 and paragraph 5 of the Notes. The funds for this redemption will come from available surplus cash. |
Significant Accounting Polici32
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Fair value measurements | Fair value measurements Fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for an identical asset or liability, we develop assumptions based on market observable data and, in the absence of such data, utilize internal information that we consider to be consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Priority is given to observable inputs. These two types of inputs form the basis for the following fair value hierarchy. • Level 1: Quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and valuations based on models where the inputs or significant value drives are observable, either directly or indirectly. • Level 3: Significant inputs to the valuation model are unobservable. |
Foreign currencies | Foreign currencies The Company uses the U.S. dollar as its reporting currency. 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 the U.S. dollar. Prior to January 1, 2016, the functional currency of the holding company (defined as NXP Semiconductors N.V. and NXP B.V.) was the euro. 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 stockholder’s equity. If the operation is a non-wholly non-controlling 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 2016 1.0474 1.1065 1.0474 1.1423 2015 1.0915 1.1150 1.0869 1.2155 2014 1.2155 1.3262 1.2155 1.3857 (1) The average of the noon-buying rate at the end of each fiscal month during the period presented. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end |
Derivative financial instruments including hedge accounting | Derivative financial instruments including hedge accounting The Company uses derivative financial instruments in the management of its foreign currency risks and the input costs of gold for a portion of our anticipated purchases within the next 12 months. The Company measures all derivative financial instruments based on fair values derived from market prices of the instruments or from option pricing models, as appropriate, and records these as assets or liabilities in the balance sheet. Changes in the fair values are immediately recognized in the statement of operations unless cash flow hedge accounting is applied. Changes in the fair value of a derivative that is highly effective and designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income (loss), until earnings are affected by the variability in cash flows of the designated hedged item. The application of cash flow hedge accounting for foreign currency risks is limited to transactions that represent a substantial currency risk that could materially affect the financial position of the Company. Foreign currency gains or losses arising from the translation of a financial liability designated as a hedge of a net investment in a foreign operation are recognized directly in other comprehensive income, to the extent that the hedge is effective, and are presented as a separate component of accumulated other comprehensive income (loss) within stockholders equity. To the extent that a hedge is ineffective, the ineffective portion of the fair value change is recognized in the consolidated statement of operations. When the hedged net investment is disposed of, the corresponding amount in the accumulated other comprehensive income is transferred to the statement of operations as part of the profit or loss on disposal. On initial designation of the hedge relationship between the hedging instrument and hedged item, the Company documents this relationship, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk, and whether the actual results of each hedge are within a range of 80-125 percent. 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 were $789 million at December 31, 2016 (2015: $213 million). The gross notional amounts by currency were as follows: 2016 2015 Euro 459 4 Chinese renminbi 45 (28 ) Japanese yen 35 26 Malaysian ringgit 73 60 Taiwan dollar 94 78 Thai baht 43 30 Other 40 43 789 213 |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include all cash balances and short-term highly liquid investments with a maturity of three months or less at acquisition that are readily convertible into known amounts of cash. Cash and cash equivalents are stated at face value which approximates fair value. |
Receivables | Receivables Receivables are carried at amortized cost, net of allowances for doubtful accounts and net of rebates and other contingent discounts granted to distributors. When circumstances indicate a specific customer’s ability to meet its financial obligation to us is impaired, we record an allowance against amounts due and value the receivable at the amount reasonably expected to be collected. For all other customers, we evaluate our trade accounts receivable for collectibility based on numerous factors including objective evidence about credit-risk concentration, collective debt risk based on average historical losses, and specific circumstances such as serious adverse economic conditions in a specific country or region. |
Inventories | Inventories Inventories are stated at the lower of cost or market, less advance payments on work in progress. The cost of inventories is determined using the first-in, first-out |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. Depreciation is calculated using the straight-line method over the expected economic life of the asset. Depreciation of special tooling is also based on the straight-line method unless a depreciation method other than the straight-line method better represents the consumption pattern. Gains and losses on the sale of property, plant and equipment are included in other income and expense. Plant and equipment under capital leases are initially recorded at the lower of the fair value of the leased property or the present value of minimum lease payments. These assets and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. |
Goodwill | Goodwill We record goodwill when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired. We assign the goodwill to our reporting units based on the relative expected fair value provided by the acquisition. We perform an annual impairment assessment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, which includes evaluating qualitative and quantitative factors to assess the likelihood of an impairment of a reporting unit’s goodwill. We perform impairment tests using a fair value approach when necessary. The reporting unit’s carrying value used in an impairment test represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash, investments and debt. |
Identified intangible assets | Identified intangible assets Licensed technology and patents are generally amortized on a straight-line basis over the periods of benefit. We amortize all acquisition-related intangible assets that are subject to amortization over their estimated useful life based on economic benefit. Acquisition-related in-process We perform a quarterly review of finite-lived identified intangible assets to determine whether facts and circumstances indicate that the useful live is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If an asset’s useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. We perform an annual impairment assessment in the fourth quarter of each year for indefinite-lived intangible assets, or more frequently if indicators of potential impairment exist, to determine whether it is more likely than not that the carrying value of the assets may not be recoverable. If necessary, a quantitative impairment test is performed to compare the fair value of the indefinite-lived intangible asset with its carrying value. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. |
Research and development | Research and development Costs of research and development are expensed in the period in which they are incurred, except for in-process |
Advertising | Advertising Advertising costs are expensed when incurred. |
Debt issuance costs | Debt issuance costs Direct costs incurred to obtain financings are capitalized and subsequently amortized over the term of the debt using the effective interest rate method. Upon extinguishment of any related debt, any unamortized debt issuance costs are expensed immediately. |
Revenue recognition | Revenue recognition The Company’s revenue is derived from sales to distributors, made-to-order Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or the service has been provided, the sales price is fixed or determinable, and collection is reasonably assured, based on the terms and conditions of the sales contract. For made-to-order made-to-order For sales to distributors, revenue is recognized upon sale to the distributor (sell-in pre-defined Distributor reserves estimate the impact of credits granted to distributors under certain programs common in the semiconductor industry whereby distributors receive certain price adjustments to meet individual competitive opportunities, or are allowed 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. The Company’s policy is to use a rolling historical experience rate, as well as a prospective view of products and pricing in the distribution channel for distributors who participate in our volume rebate incentive program, in order to estimate the proper provision for this program at the end of any given reporting period. 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. Distributor reserves are also adjusted when recent historical data does not represent anticipated future activity. 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. In accordance with this historical data, a pro rata portion of the sales to these distributors is not recognized but deferred until the return period has lapsed or the other return conditions no longer apply. Revenue is recorded net of sales taxes, customer discounts, rebates and other contingent discounts granted to distributors. We include shipping charges billed to customers in revenue and include the related shipping costs in cost of revenue. |
Restructuring | Restructuring The provision for restructuring relates to the estimated costs of initiated restructurings that have been approved by Management. When such plans require discontinuance and/or closure of lines of activities, the anticipated costs of closure or discontinuance are recorded at fair value when the liability has been incurred. The Company determines the fair value based on discounted projected cash flows in the absence of other observable inputs such as quoted prices. The restructuring liability includes the estimated cost of termination benefits provided to former or inactive employees after employment but before retirement, costs to terminate leases and other contracts, and selling costs associated with assets held for sale and other costs related to the closure of facilities. One-time |
Financial income and expense | Financial income and expense Financial income and expense is comprised of interest income on cash and cash equivalent balances, the interest expense on borrowings, the accretion of the discount or premium on issued debt, the gain or loss on the disposal of financial assets, impairment losses on financial assets and gains or losses on hedging instruments recognized in the statement of operations. For periods prior to January 1, 2016, the mark-to-market mark-to-market re-measured. Borrowing costs that are not directly attributable to the acquisition, construction or production of property, plant and equipment are recognized in the statement of operations using the effective interest method. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. Measurement of deferred tax assets and liabilities is based upon the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax liabilities for income taxes or withholding taxes on dividends from subsidiaries are recognized in situations where the company does not consider the earnings indefinitely reinvested and to the extent that the withholding taxes are not expected to be refundable. Deferred tax assets, including assets arising from loss carryforwards, are recognized, net of a valuation allowance, if based upon the available evidence it is more likely than not that the asset will be realized. The income tax benefit from 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 more than 50 percent likely to be realized upon resolution of the uncertainty. The liability for unrecognized tax benefits and the related interest and penalties is recorded under accrued liabilities and other non-current The Company recognizes windfall tax benefits associated with share-based awards directly to stockholders’ equity when realized. A windfall tax benefit occurs when the actual tax benefit realized by the Company upon an employee’s disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award that the Company had recorded. The Company records windfall tax benefits to stockholders’ equity. A shortfall occurs when the actual tax benefit realized by the Company upon an employee’s disposition of a share-based award is less than the deferred tax asset, if any, associated with the award that the Company has recorded. The Company records shortfall tax detriments when realized to stockholders’ equity to the extent that previous windfall tax benefits exist (referred to as the APIC windfall pool), with any remainder recognized in income tax expense. When assessing whether a tax benefit relating to share-based compensation has been realized, the Company follows the tax law ordering method, under which current year share-based compensation deductions are assumed to be utilized before net operating loss carryforwards and other tax attributes. |
Postretirement benefits | Postretirement benefits The Company’s employees participate in pension and other postretirement benefit plans in many countries. The costs of pension and other postretirement benefits and related assets and liabilities with respect to the Company’s employees participating in the various plans are based upon actuarial valuations. Some of the Company’s defined-benefit pension plans are funded with plan assets that have been segregated and restricted in a trust, foundation or insurance company to provide for the pension benefits to which the Company has committed itself. The net liability or asset recognized in the balance sheet in respect of the postretirement plans is the present value of the projected benefit obligation less the fair value of plan assets at the balance sheet date. Most of the Company’s plans are unfunded and result in a provision or a net liability. For the Company’s major plans, the discount rate is derived from market yields on high quality corporate bonds. Plans in countries without a deep corporate bond market use a discount rate based on the local government bond rates. Benefit plan costs primarily represent the increase in the actuarial present value of the obligation for benefits based on employee service during the year and the interest on this obligation in respect of employee service in previous years, net of the expected return on plan assets and net of employee contributions. Actuarial gains and losses arise mainly from changes in actuarial assumptions and differences between actuarial assumptions and what has actually occurred. They are recognized in the statement of operations, over the expected average remaining service periods of the employees only to the extent that their net cumulative amount exceeds 10% of the greater of the present value of the obligation or of the fair value of plan assets at the end of the previous year (the corridor). Events which invoke a curtailment or a settlement of a benefit plan will be recognized in our statement of operations. In calculating obligation and expense, the Company is required to select actuarial assumptions. These assumptions include discount rate, expected long-term rate of return on plan assets, assumed health care trend rates and rates of increase in compensation costs determined based on current market conditions, historical information and consultation with and input from our actuaries. Changes in the key assumptions can have a significant impact to the projected benefit obligations, funding requirements and periodic cost incurred. Unrecognized prior-service costs related to the plans are amortized to the statements of operations over the average remaining service period of the active employees. Contributions to defined-contribution and multi-employer pension plans are recognized as an expense in the statements of operations as incurred. The Company determines the fair value of plan assets based on quoted prices or comparable prices for non-quoted The Company recognizes as a component of other comprehensive income, net of taxes, the gains or losses and prior service costs that arise during the year but are not recognized as a component of net periodic benefit cost. Amounts recognized in accumulated other comprehensive income, including the gains or losses and the prior services costs are adjusted as they are subsequently recognized as components of net periodic benefit costs. For all of the Company’s postretirement benefit plans, the measurement date is December 31, our year-end. |
Share-based compensation | Share-based compensation We recognize compensation expense for all share-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. We use the Black-Scholes option pricing model to determine the estimated fair value for certain awards. Share-based compensation cost for restricted share units (“RSU”s) with time-based vesting is measured based on the closing fair market value of our common stock on the date of the grant, reduced by the present value of the estimated expected future dividends, and then multiplied by the number of RSUs granted. Share-based compensation cost for performance-based share units (“PSU”s) granted with performance or market conditions is measured using a Monte Carlo simulation model on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statements of Operations. For stock options and RSUs, the grant-date value, less estimated pre-vest |
Earnings per share | Earnings per share Basic earnings per share attributable to stockholders is calculated by dividing net income or loss attributable to stockholders of the Company by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, RSUs, PSUs and Employee Stock Purchase Plan (“ESPP”) shares. Under the treasury stock method, the amount the employee must pay for exercising share-based awards, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of excess tax benefits that would be recorded in additional paid-in |
Concentration of risk | Concentration of risk Financial instruments, including derivative financial instruments, that may potentially subject NXP to concentrations of credit risk, consist principally of cash and cash equivalents, short-term investments, long-term investments, accounts receivable and forward contracts. We sell our products to OEMs and to distributors in various markets, who resell these products to OEMs, or their subcontract manufacturers. One of our distributors accounted for 13% of our revenue in 2016, 14% in 2015 and 13% in 2014 and one other distributor accounted for less than 10% of our revenue in 2016, 14% in 2015 and 13% in 2014. No other distributor accounted for greater than 10% of our revenue for 2016, 2015 or 2014. No individual OEM for which we had direct sales to accounted for more than 10% of our revenue for 2016, 2015 or 2014. Credit exposure related to NXP’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. NXP is party to certain hedge transactions related to its 2019 Cash Convertible Senior Notes. NXP is subject to the risk that the counterparties to these transactions may not be able to fulfill their obligations under these hedge transactions. NXP purchased options and issued warrants to hedge potential cash payments in excess of the principal and contractual interest related to its 2019 Cash Convertible Senior Notes, which were issued during fiscal 2014. The 2019 Cash Convertible Senior Note hedges are adjusted to fair value each reporting period and unrealized gains and losses are reflected in NXP’s Consolidated Statements of Operations. Because the fair value of the 2019 Cash Convertible Senior Notes embedded conversion derivative and the 2019 Cash Convertible Senior Notes hedges are designed to have similar offsetting values, there was no impact to NXP’s Consolidated Statements of Operations relating to these adjustments to fair value. The Company is using outside suppliers or foundries for a portion of its manufacturing capacity. We have operations in Europe and Asia subject to collective bargaining agreements which could pose a risk to the Company in the near term but we do not expect that our operations will be disrupted if such is the case. |
Accounting standards adopted in 2016 | Accounting standards adopted in 2016 In April 2015, the FASB issued ASU No. 2015-05, Internal-Use 350-40): In September 2015, the FASB issued ASU No. 2015-16, In November 2015, the FASB issued ASU 2015-17, 2015-17 non-current. New standards to be adopted after 2016 In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, No. 2015-14, In January 2016, the FASB issued ASU 2016-01, 825-10). 2016-01 In February, 2016, the FASB issued ASU 2016-02, Leases . right-of-use In March, 2016 the FASB issued ASU 2016-09, Compensation—Stock In March 2016, the FASB issued ASU 2016-08, Revenue 2016-10, Revenue 2016-12, Revenue 2016-11, Revenue 2014-09 2014-16 2016-20, 2014-09, Revenue The amendments in ASU 2016-08 2016-10 2014-09: 2016-11 2016-12 2016-12 2014-09, In August 2016, the FASB issued ASU 2016-15, Classification 2016-15 2016-15 In October 2016, the FASB issued ASU 2016-16, 2016-16, In January 2017, the FASB issued ASU 2017-01, 2017-01 2017-01 |
Significant Accounting Polici33
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Exchange Rates for U.S. Dollars into Euros Applicable for Translation of NXP's Financial Statements | The following table sets out the exchange rates for U.S. dollars into euros applicable for translation of NXP’s financial statements for the periods specified. $ per € 1 period end average (1) high low 2016 1.0474 1.1065 1.0474 1.1423 2015 1.0915 1.1150 1.0869 1.2155 2014 1.2155 1.3262 1.2155 1.3857 (1) The average of the noon-buying rate at the end of each fiscal month during the period presented. |
Gross Notional Amounts by Currency | The gross notional amounts by currency were as follows: 2016 2015 Euro 459 4 Chinese renminbi 45 (28 ) Japanese yen 35 26 Malaysian ringgit 73 60 Taiwan dollar 94 78 Thai baht 43 30 Other 40 43 789 213 |
Acquisitions and Divestments (T
Acquisitions and Divestments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Pro Forma Financial Information Presents Combined Consolidated Results of Operations | The following unaudited pro forma financial information presents combined consolidated results of operations for each of the fiscal years presented, as if Freescale had been acquired as of January 1, 2014: 2015 2014 Revenue 9,850 9,904 Net income (loss) attributable to stockholders (84 ) (277 ) Net income (loss) per common share attributable to stockholders: - Basic (0.25 ) (0.81 ) - Diluted (0.25 ) (0.81 ) |
Schedule of Total Purchase Price | The total purchase price amounts to $11,639 million and consisted of the following: Cash payment of $6.25 per Freescale common share 1,948 Total value of NXP ordinary shares delivered 9,449 Value of NXP restricted share units delivered to holders of Freescale restricted share units and performance-based restricted share units 157 Value of NXP stock options delivered to holders of Freescale stock options 85 Total purchase price 11,639 |
Allocation of Purchase Price | The allocation of the purchase price is as follows: Total purchase price 11,639 Estimated fair value of net tangible assets acquired and liabilities assumed: Cash and cash equivalents 427 Accounts receivable, net 511 Inventories, net 1,280 Other current assets 93 Property, plant and equipment 1,827 Other non-current 64 Accounts payable, accrued liabilities and other current liabilities (714 ) Deferred taxes (2,292 ) Other long-term liabilities (329 ) Long-term debt (5,091 ) (4,224 ) |
Fair Value (and Useful Lives) of Identified Intangible Assets Acquired | Fair value (and useful lives) of identified intangible assets acquired: Customer relationships (included in customer-related) (19 years) 764 Developed technology (included in technology-based) (5 years) 5,371 Sales order backlog (included in marketing-related) (1 year) 190 Trade name (included in marketing-related) (5 years) 81 In-process * 2,017 Other 41 8,464 Goodwill 7,399 * Acquired 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. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Carrying Value of Assets and Liabilities Held for Sale | The following table summarizes the carrying value of assets and liabilities held for sale which is primarily relative to the SP business: 2016 Trade accounts receivable, net 3 Other assets 28 Inventories, net 208 Property, plant and equipment, net 396 Identified intangible assets, net 133 Goodwill 336 Assets held for sale 1,104 Trade accounts payable (110 ) Accrued and other liabilities (88 ) Liabilities held for sale (198 ) |
Supplemental Financial Inform36
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Depreciation, Amortization and Impairment | Depreciation, amortization and impairment Depreciation and amortization, including impairment charges, are as follows: 2016 2015 2014 Depreciation of property, plant and equipment 609 262 219 Amortization of internal use software 24 26 31 Amortization of other identified intangible assets (*) 1,572 229 155 2,205 517 405 (*) Includes impairment charges relative to IPR&D, which was acquired as part of the acquisition of Freescale of $89 million for 2016. |
Other Income (Expense) | Other income (expense) 2016 2015 2014 Result on disposal of businesses 8 1,257 6 Result on disposal of properties 1 6 3 Other income (expense) — — 1 9 1,263 10 |
Financial Income (Expense) | Financial income (expense) 2016 2015 2014 Interest income 11 6 3 Interest expense (408 ) (227 ) (158 ) Total interest expense, net (397 ) (221 ) (155 ) Net gain (loss) on extinguishment of debt (32 ) — (3 ) Foreign exchange rate results (15 ) (193 ) (246 ) Change in fair value of the warrant liability — (31 ) (2 ) Miscellaneous financing costs/income, net (9 ) (84 ) (4 ) Total other financial income (expense) (56 ) (308 ) (255 ) Total (453 ) (529 ) (410 ) |
Results Relating to Equity-Accounted Investees | Results related to equity-accounted investees at the end of each period were as follows: 2016 2015 2014 Company’s share in income (loss) 11 8 8 Other results — 1 — 11 9 8 |
Summary of Carrying Value of Investments in Equity-Accounted Investees | The total carrying value of investments in equity-accounted investees is summarized as follows: 2016 2015 Shareholding % Amount Shareholding % Amount ASMC 27 21 27 21 ASEN 40 56 40 46 WeEn 49 62 49 59 Others 15 15 154 141 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Position of Restructuring Liabilities by Segment | The following table presents the changes in the position of restructuring liabilities in 2016 by segment: Balance Additions Utilized Released Other (1) Balance HPMS 234 52 (131 ) (3 ) (4 ) 148 SP 6 — (2 ) — (1 ) 3 Corporate and Other — — — — — — 240 52 (133 ) (3 ) (5 ) 151 (1) Other changes primarily related to translation differences and internal transfers. The total restructuring liability as of December 31, 2016 of $151 million is classified in the balance sheet under current liabilities ($129 million) and non-current 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 2015 by segment: Balance Additions Utilized Released Other (1) Balance HPMS 14 226 (17 ) (1 ) 12 234 SP 5 8 (6 ) — (1 ) 6 Corporate and Other 21 5 (23 ) (1 ) (2 ) — 40 239 (46 ) (2 ) 9 240 (1) Other changes primarily related to translation differences and internal transfers. |
Components of Restructuring Charges Less Releases Recorded in Liabilities | The components of restructuring charges less releases recorded in the liabilities in 2016, 2015 and 2014 are as follows: 2016 2015 2014 Personnel lay-off 52 239 43 Other exit costs 19 27 1 Release of provisions/accruals (3 ) (2 ) (16 ) Net restructuring charges 68 264 28 |
Restructuring Charges Less Releases Recorded in Liabilities Per Line Item in Statement of Operations | The restructuring charges less releases recorded in operating income are included in the following line items in the statement of operations: 2016 2015 2014 Cost of revenue 18 18 16 Selling, general and administrative 9 155 3 Research & development 41 91 9 Net restructuring charges 68 264 28 |
Provision for Income Taxes (Tab
Provision for Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows: 2016 2015 2014 Netherlands 537 1,528 398 Foreign (1,140 ) (42 ) 241 (603 ) 1,486 639 |
Components of Benefit (Provision) for Income Taxes | The components of the benefit (provision) for income taxes are as follows: 2016 2015 2014 Current taxes: Netherlands (7 ) (13 ) (7 ) Foreign (67 ) (51 ) (32 ) (74 ) (64 ) (39 ) Deferred taxes: Netherlands 205 (4 ) 2 Foreign 720 172 (3 ) 925 168 (1 ) Total benefit (provision) for income taxes 851 104 (40 ) |
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: (in percentages) 2016 2015 2014 Statutory income tax in the Netherlands 25.0 25.0 25.0 Rate differential local statutory rates versus statutory rate of the Netherlands 24.2 (4.3 ) (2.5 ) Net change in valuation allowance 72.6 (13.8 ) 2.4 Prior year adjustments 0.1 — 0.5 Non-taxable 1.7 (0.1 ) (0.3 ) Non-deductible (7.0 ) 4.0 5.6 Sale of non-deductible — 2.7 — Other taxes and tax rate changes 7.1 1.0 — Tax effects of remitted and unremitted earnings and withholding taxes (2.7 ) 0.1 1.3 Tax on gains related to internal corporate reorganization transactions (10.3 ) — — Unrecognized tax benefits (0.5 ) 0.1 0.6 Netherlands tax incentives 17.9 (18.5 ) (21.5 ) Foreign tax incentives 13.0 (3.2 ) (4.8 ) Effective tax rate 141.1 % (7.0 %) 6.3 % |
Principal Components of Deferred Tax Assets and Liabilities | The principal components of deferred tax assets and liabilities are presented below: 2016 2015 Operating loss and tax credit carryforwards 1,031 963 Accrued interest 432 545 Other accrued liabilities 107 147 Pensions 86 87 Stock Based Compensation 58 73 Restructuring 40 61 Receivables 36 11 Inventories (including purchase accounting basis difference) 27 (109 ) Other assets 10 9 Long-term debt — 179 Total Gross Deferred Tax Assets 1,827 1,966 Valuation Allowance (127 ) (632 ) Total Net Deferred Tax Assets 1,700 1,334 Intangible assets (including purchase accounting basis difference) (2,431 ) (2,952 ) Undistributed earnings of foreign subsidiaries (367 ) (359 ) Property, plant and equipment (including purchase accounting basis difference) (134 ) (226 ) Total Deferred Tax Liabilities (2,932 ) (3,537 ) Net Deferred Tax Position (1,232 ) (2,203 ) |
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: 2016 2015 Deferred tax assets within other current assets — 26 Deferred tax assets within other non-current 427 69 Deferred tax liabilities within accrued liabilities — (5 ) Deferred tax liabilities within non-current (1,659 ) (2,293 ) (1,232 ) (2,203 ) |
Expiration of Tax Loss Carryforwards | At December 31, 2016 tax loss carryforwards of $1,899 million (inclusive of $270 million of U.S. state tax losses) will expire as follows: Balance December 31, Scheduled expiration 2016 2017 2018 2019 2020 2021 2022-2026 later unlimited Tax loss carryforwards 1,899 26 10 29 10 1 947 290 586 |
Expiration of Tax Credit Carryforwards | The Company also has tax credit carryforwards of $749 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 2017 2018 2019 2020 2021 2022-2026 later unlimited Tax credit carryforwards 749 1 8 12 32 18 336 282 60 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance as of January 1, 149 125 143 Assumed in the acquisition of Freescale — 121 — Decreases from activities which are held for sale (7 ) — — Increases from tax positions taken during prior periods 1 1 — Decreases from tax positions taken during prior periods (3 ) (111 ) (21 ) Increases from tax positions taken during current period 10 15 3 Decreases relating to settlements with the tax authorities (4 ) (2 ) — Balance as of December 31, 146 149 125 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share (EPS) | The computation of earnings per share (EPS) is presented in the following table: 2016 2015 2014 Net income (loss) 259 1,599 607 Less: Net income (loss) attributable to non-controlling 59 73 68 Net income (loss) attributable to stockholders 200 1,526 539 Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 338,477 239,764 237,954 Plus incremental shares from assumed conversion of: Options 1) 5,582 6,194 6,753 Restricted Share Units, Performance Share Units and Equity Rights 2) 3,548 4,158 3,902 Warrants 3) — — — Dilutive potential common share 9,130 10,352 10,655 Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands) 1) 347,607 250,116 248,609 EPS attributable to stockholders in $: Basic net income (loss) 0.59 6.36 2.27 Diluted net income (loss) 0.58 6.10 2.17 1) Stock options to purchase up to 1.4 million shares of NXP’s common stock that were outstanding in 2016 (2015: 0.7 million shares; 2014: 0.5 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. 2) Unvested RSU’s, PSU’s and equity rights of 0.9 million shares that were outstanding in 2016 (2015: 0.5 million shares; 2014: 1.2 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSU’s, PSU’s and equity rights or the performance goal has not been met. 3) Warrants to purchase up to 11.2 million shares of NXP’s common stock at a price of $133.32 per share were outstanding in 2016 (2015: 11.2 million shares at a price of $133.32; 2014: nil). Upon exercise, the warrants will be net share settled. At the end of 2016 and 2015, the warrants were not included in the computation of diluted EPS because the warrants’ exercise price was greater than the average fair market value of the common shares. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Share-Based Compensation Expense | Share-based compensation expense is included in the following line items in our statement of operations: 2016 2015 2014 Cost of revenue 49 15 10 Research and development 123 45 20 Selling, general and administrative 166 156 103 338 216 133 |
Long Term Incentive Plans [Member] | |
Summary of Stock Options and Changes | Stock options Weighted average price in USD Weighted average Aggregate intrinsic Outstanding at January 1, 2016 10,034,650 38.53 Granted 108,419 80.44 Exercised 2,734,739 32.12 Forfeited 239,678 54.81 Outstanding at December 31, 2016 7,168,652 41.07 6.0 408 Exercisable at December 31, 2016 4,857,680 30.97 5.5 326 |
Summary of Restricted Share Units | Restricted share units Shares Weighted average grant Outstanding at January 1, 2016 8,237,861 78.03 Granted 2,739,672 98.16 Vested 3,688,422 75.61 Forfeited 368,232 76.00 Outstanding at December 31, 2016 6,920,879 87.48 |
Long Term Incentive Plans [Member] | Financial Performance Conditions [Member] | |
Summary of Performance Share Units | Performance share units Financial performance conditions Shares Weighted average grant in USD Outstanding at January 1, 2016 775,324 49.68 Granted 32,716 82.53 Vested 398,951 30.00 Forfeited 375 49.60 Outstanding at December 31, 2016 408,714 71.52 |
Long Term Incentive Plans [Member] | Market Performance Conditions [Member] | |
Summary of Performance Share Units | Market performance conditions Shares Weighted average grant in USD Outstanding at January 1, 2016 1,905,269 26.85 Granted — — Vested 1,580,086 27.28 Forfeited — — Outstanding at December 31, 2016 325,183 38.63 |
Management Equity Stock Option Plan [Member] | |
Summary of Stock Options and Changes | The following table summarizes the information about NXP’s outstanding MEP Options and changes during 2016. Stock options Stock options Weighted average Weighted average Aggregate intrinsic Outstanding at January 1, 2016 2,748,942 24.14 Granted — — Exercised 214,670 29.64 Forfeited — — Expired — — Outstanding at December 31, 2016 2,534,272 23.67 1.7 177 Exercisable at December 31, 2016 2,534,272 23.67 1.7 177 |
Accounts Receivables, net (Tabl
Accounts Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivables, net | Accounts receivable are summarized as follows: 2016 2015 Accounts receivable from third parties 1,035 1,048 Allowance for doubtful accounts (2 ) (1 ) 1,033 1,047 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories are summarized as follows: 2016 2015 Raw materials 52 66 Work in process 854 1,376 Finished goods 207 437 1,113 1,879 |
Property, Plant and Equipment43
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Land 111 160 Buildings 9 to 50 1,153 854 Machinery and installations 2 to 10 3,006 4,156 Other Equipment 1 to 5 278 227 Prepayments and construction in progress 118 108 4,666 5,505 Less accumulated depreciation (2,314 ) (2,583 ) Property, plant and equipment, net of accumulated depreciation 2,352 2,922 |
Identified Intangible Assets (T
Identified Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Changes in Identified Intangible Assets | The changes in identified intangible assets were as follows: Total Other intangible Software Balance as of January 1, 2015: Cost 1,866 1,715 151 Accumulated amortization/impairment (1,293 ) (1,207 ) (86 ) Book value 573 508 65 Changes in book value: Acquisitions/additions 8,551 8,543 8 Transfer to assets held for sale (38 ) (38 ) — Amortization (255 ) (229 ) (26 ) Translation differences (41 ) (35 ) (6 ) Total changes 8,217 8,241 (24 ) Balance as of December 31, 2015: Cost 9,978 9,832 146 Accumulated amortization/impairment (1,188 ) (1,083 ) (105 ) Book value 8,790 8,749 41 Changes in book value: Acquisitions/additions 299 289 10 Transfer to assets held for sale (138 ) (138 ) — Amortization (1,507 ) (1,483 ) (24 ) Impairment (89 ) (89 ) — Translation differences (12 ) (10 ) (2 ) Total changes (1,447 ) (1,431 ) (16 ) Balance as of December 31, 2016: Cost 9,512 9,397 115 Accumulated amortization/impairment (2,169 ) (2,079 ) (90 ) Book value 7,343 7,318 25 |
Summary of Identified Intangible Assets | Identified intangible assets as of December 31, 2016 and 2015 respectively were composed of the following: December 31, 2016 December 31, 2015 Gross carrying Accumulated Gross carrying Accumulated IPR&D 1) 1,380 — 2,016 — Marketing-related 81 (18 ) 119 (18 ) Customer-related 1,146 (322 ) 1,287 (224 ) Technology-based 6,790 (1,739 ) 6,410 (841 ) 9,397 (2,079 ) 9,832 (1,083 ) Software 115 (90 ) 146 (105 ) Identified intangible assets 9,512 (2,169 ) 9,978 (1,188 ) 1) IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort. |
Other Intangible Assets [Member] | |
Schedule of Estimated Amortization Expense for Intangible Assets, Excluding Software | The estimated amortization expense for these identified intangible assets, excluding software, for each of the five succeeding years is: 2017 1,423 2018 1,432 2019 1,472 2020 1,190 2021 462 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The changes in goodwill in 2016 and 2015 were as follows: 2016 2015 Balances as of January 1 Cost 9,414 2,328 Accumulated impairment (186 ) (207 ) Book value 9,228 2,121 Changes in book value: Acquisitions 14 7,464 Purchase accounting adjustments related to Freescale acquisition (25 ) — Transfer to assets held for sale (349 ) (179 ) Translation differences (25 ) (178 ) Total changes (385 ) 7,107 Balances as of December 31 Cost 9,029 9,414 Accumulated impairment (186 ) (186 ) Book value 8,843 9,228 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of PME Multi-Employer Plan | PME multi-employer plan 2016 2015 2014 NXP’s contributions to the plan 36 37 48 (including employees’ contributions) 4 4 4 Average number of NXP’s active employees participating in the plan 2,415 2,668 2,881 NXP’s contribution to the plan exceeded more than 5 percent of the total contribution (as of December 31 of the plan’s year end) No No No |
Summary of Changes in Pension Benefit Obligations and Defined-Benefit Pension Plan Assets | The table below provides a summary of the changes in the pension benefit obligations and defined-benefit pension plan assets for 2016 and 2015, 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. 2016 2015 Projected benefit obligation Projected benefit obligation at beginning of year 561 447 Service cost 17 12 Interest cost 14 11 Actuarial (gains) and losses 53 (18 ) Curtailments and settlements (15 ) (16 ) Benefits paid (21 ) (14 ) Pension liabilities held-for-sale (28 ) — Benefit obligation assumed in acquisitions — 177 Exchange rate differences (17 ) (38 ) Projected benefit obligation at end of year 564 561 Plan assets Fair value of plan assets at beginning of year 190 157 Actual return on plan assets 3 7 Employer contributions 21 10 Curtailments and settlements (15 ) (12 ) Benefits paid (21 ) (14 ) Pension assets held-for-sale (2 ) — Plan assets acquired in acquisitions — 56 Exchange rate differences (4 ) (14 ) Fair value of plan assets at end of year 172 190 Funded status (392 ) (371 ) Classification of the funded status is as follows - Prepaid pension cost within other non-current — 4 - Accrued pension cost within other non-current (380 ) (368 ) - Accrued pension cost within accrued liabilities (12 ) (7 ) Total (392 ) (371 ) Accumulated benefit obligation Accumulated benefit obligation for all Company-dedicated benefit pension plans 524 518 Plans with assets less than accumulated benefit obligation Funded plans with assets less than accumulated benefit obligation - Fair value of plan assets 171 73 - Accumulated benefit obligations 327 209 - Projected benefit obligations 357 243 Unfunded plans - Accumulated benefit obligations 195 196 - Projected benefit obligations 204 204 Amounts recognized in accumulated other comprehensive income (before tax) Total AOCI at beginning of year 42 70 - Net actuarial loss (gain) 54 (21 ) - Exchange rate differences (5 ) (7 ) Total AOCI at end of year 91 42 |
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: 2016 2015 Discount rate 2.0 % 2.5 % Rate of compensation increase 1.9 % 2.2 % The weighted average assumptions used to calculate the net periodic pension cost were as follows: 2016 2015 2014 Discount rate 2.5 % 2.6 % 3.7 % Expected returns on plan assets 3.5 % 4.2 % 4.2 % Rate of compensation increase 2.2 % 1.8 % 2.3 % |
Components of Net Periodic Pension Costs | The components of net periodic pension costs were as follows: 2016 2015 2014 Service cost 17 12 10 Interest cost on the projected benefit obligation 14 11 13 Expected return on plan assets (6 ) (6 ) (7 ) Amortization of net (gain) loss 2 3 (1 ) Curtailments & settlements (1 ) (6 ) — Other — 2 — Net periodic cost 26 16 15 |
Summary of Actual Pension Plan Assets Allocation and Classification | The actual pension plan asset allocation at December 31, 2016 and 2015 is as follows: 2016 2015 Asset category: Equity securities 29 % 29 % Debt securities 52 % 55 % Insurance contracts 7 % 6 % Other 12 % 10 % 100 % 100 % The following table summarizes the classification of these assets. 2016 2015 Level I Level II Level III Level I Level II Level III Equity securities — 48 — — 49 — Debt securities 9 72 — 7 81 — Insurance contracts — 12 — — 12 — Other 5 11 4 3 10 3 14 143 4 10 152 3 |
Summary of Estimated Future Pension Benefit Payments | The following benefit payments are expected to be made (including those for funded plans): 2017 21 2018 16 2019 17 2020 18 2021 20 Years 2022-2026 128 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | Short-term debt 2016 2015 Short-term bank borrowings — 6 Current portion of long-term debt (*) 421 550 Total 421 556 (*) Net of adjustment for debt issuance costs. |
Summary of Outstanding Long-Term Debt | The following table summarizes the outstanding long-term debt as of December 31, 2016 and 2015: 2016 2015 Maturities Amount Effective Amount Effective Floating-rate term loan Mar, 2017 388 2.770 392 2.750 Floating-rate term loan Jan, 2020 387 3.270 391 3.250 Floating-rate term loan Dec, 2020 1,436 3.270 2,700 3.750 Fixed-rate 3.5% senior unsecured notes Sep, 2016 — — 500 3.500 Fixed-rate 3.75% senior unsecured notes Jun, 2018 750 3.750 750 3.750 Fixed-rate 4.125% senior unsecured notes Jun, 2020 600 4.125 600 4.125 Fixed-rate 4.125% senior unsecured notes Jun, 2021 1,350 4.125 — — Fixed-rate 5.75% senior unsecured notes Feb, 2021 500 5.750 500 5.750 Fixed-rate 5% senior secured notes May, 2021 — — 500 5.000 Fixed-rate 3.875% senior unsecured notes Sep, 2022 1,000 3.875 — — Fixed-rate 6% senior secured notes Jan, 2022 — — 960 6.000 Fixed-rate 4.625% senior unsecured notes Jun, 2022 400 4.625 400 4.625 Fixed-rate 5.75% senior unsecured notes Mar, 2023 500 5.750 500 5.750 Fixed-rate 4.625% senior unsecured notes Jun, 2023 900 4.625 — — Fixed-rate 1% cash convertible notes Dec, 2019 1,150 1.000 1,150 1.000 Floating-rate revolving credit facility Dec, 2020 — — — — Total principal 9,361 9,343 Liabilities arising from capital lease transactions 15 31 Unamortized discounts, premiums and debtissuance costs (61 ) (82 ) Fair value of embedded cash conversion option (128 ) (167 ) Purchase accounting fair value adjustmentFreescale Senior Secured Notes — 81 Total debt, including unamortized discounts,premiums, debt issuance costs and fair value adjustments 9,187 9,206 Current portion of long-term debt (421 ) (550 ) Long-term debt 8,766 8,656 |
Schedule of Long-Term Debt | Range of Average Principal 2016 Due in Due Due after Average (in years) Principal USD notes 2.8%-5.8% 4.1 % 8,211 406 7,805 2,800 4.2 8,193 2019 Cash Convertible Senior Notes 1.0%-1.0% 1.0 % 1,150 — 1,150 — 2.9 1,150 Revolving Credit Facility (1) — — — — — — — — Bank borrowings — — — — — — — — Liabilities arising from capital lease transactions 2.5%-13.8% 3.0 % 15 15 — — 1.3 31 3.7 % 9,376 421 8,955 2,800 4.1 9,374 (1) We do not have any borrowings under the $600 million Revolving Credit Facility as of December 31, 2016. |
Principal Amounts of Long-Term Debt | As of December 31, 2016, the following principal amounts of long-term debt are due in the next 5 years: 2017 421 2018 768 2019 1,167 2020 2,370 2021 1,850 Due after 5 years 2,800 9,376 |
Summary of Principal Amount, Unamortized Debt Discount and Net Carrying Amount of Liability Component | The principal amount, unamortized debt discount and net carrying amount of the liability component of the 2019 Cash Convertible Senior Notes as of December 31, 2016 and 2015 was as follows: (in millions) As of December 31 2016 2015 Principal amount of 2019 Cash Convertible Senior Notes 1,150 1,150 Unamortized debt discount of 2019 Cash Convertible Senior Notes 136 178 Net liability of 2019 Cash Convertible Senior Notes 1,014 972 |
Summary of Effective Interest Rate, Contractual Interest Expense and Amortization of Debt Discount | The effective interest rate, contractual interest expense and amortization of debt discount for the 2019 Cash Convertible Senior Notes for fiscal 2016 and 2015 were as follows: (in millions, except percentage) 2016 2015 Effective interest rate 5.14 % 5.14 % Contractual interest expense 12 12 Amortization of debt discount 40 38 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under operating leases are as follows: 2017 33 2018 23 2019 17 2020 12 2021 5 Thereafter 23 Total future minimum leases payments 113 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Transactions from Employee Option and Share Plans | The following transactions took place resulting from employee option and share plans in 2016: 2016 Total shares in treasury at beginning of year 3,998,982 Total cost 342 Shares acquired under repurchase program 15,537,868 Average price in $ per share 82.36 Amount paid 1,280 Shares delivered 8,926,870 Average price in $ per share 79.25 Amount received 115 Total shares in treasury at end of year 10,609,980 Total cost 915 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax | The after-tax Net Currency Change in fair Net actuarial Unrealized available-for sale Accumulated Other As of December 31, 2014 (331 ) 627 (2 ) (85 ) 1 210 Other comprehensive income (loss) before reclassifications (190 ) 131 (2 ) 28 (1 ) (34 ) Amounts reclassified out of accumulated other comprehensive income (loss) — — 2 — — 2 Tax effects — — — 3 — 3 Other comprehensive income (loss) (190 ) 131 — 31 (1 ) (29 ) As of December 31, 2015 (521 ) 758 (2 ) (54 ) — 181 Reclassification 521 (521 ) — Other comprehensive income (loss) before reclassifications — (124 ) — (22 ) 6 (140 ) Amounts reclassified out of accumulated other comprehensive income (loss) — — (1 ) — — (1 ) Tax effects — — 1 (5 ) (2 ) (6 ) Other comprehensive income (loss) — (124 ) — (27 ) 4 (147 ) As of December 31, 2016 — 113 (2 ) (81 ) 4 34 |
Related-party Transactions (Tab
Related-party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Related to Revenue and Expenses Incurred in Transactions | The following table presents the amounts related to revenue and expenses incurred in transactions with these related parties: 2016 2015 2014 Revenue 59 8 11 Purchase of goods and services 116 85 103 |
Schedule of Amounts Related to Receivable and Payable Balances with Related Parties | The following table presents the amounts related to receivable and payable balances with these related parties: 2016 2015 Receivables 13 24 Payables 29 24 |
Fair Value of Financial Asset52
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Value and Carrying Amount of Financial Instruments Measured on a Recurring Basis | The following table summarizes the estimated fair value and carrying amount of our financial instruments measured on a recurring basis: December 31, 2016 December 31, 2015 Fair value Carrying Estimated Carrying Estimated Assets: Notes hedges 3 1) 258 258 241 241 Other financial assets 2 40 40 47 47 Derivative instruments-assets 2 3 3 2 2 Liabilities: Short-term debt 2 (15 ) (15 ) (22 ) (22 ) Short-term debt (bonds) 2 (406 ) (406 ) (534 ) (535 ) Long-term debt (bonds) 2 (7,752 ) (8,011 ) (7,669 ) (7,723 ) 2019 Cash Convertible Senior Notes 2 (1,014 ) (1,310 ) (972 ) (1,260 ) Other long-term debt 2 (1 ) (1 ) (15 ) (15 ) Notes Embedded Conversion Derivative 3 1) (258 ) (258 ) (241 ) (241 ) Warrants 2 — — (168 ) (168 ) Derivative instruments-liabilities 2 (6 ) (6 ) (4 ) (4 ) 1) During the fourth quarter of 2016, the Notes hedges and the Notes Embedded Conversion Derivative were transferred from level 2 to level 3 of the fair value hierarchy. |
Segments and Geographical Inf53
Segments and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Detailed information by segment for the years 2016, 2015 and 2014 is presented in the following tables. Revenue 2016 2015 2014 HPMS 8,086 4,720 4,208 SP 1,220 1,241 1,275 Corporate and Other (1) 192 140 164 9,498 6,101 5,647 Operating income (loss) 2016 2015 2014 HPMS (302 ) 1,885 983 SP 268 264 120 Corporate and Other (1) (116 ) (134 ) (54 ) (150 ) 2,015 1,049 (1) Corporate and Other is not a segment under ASC 280 “Segment Reporting”. Corporate and Other includes revenue related to Manufacturing Operations, unallocated expenses not related to any specific business segment and corporate restructuring charges. |
Goodwill Assigned to Segments | Goodwill assigned to segments Cost at January 1, Acquisitions Transfer to asset held for Translation Cost at HPMS 8,769 14 (6 ) (49 ) 8,728 SP 373 — (343 ) 2 32 Corporate and Other (1) 272 — — (3 ) 269 9,414 14 (349 ) (50 ) 9,029 See note 3 for further information regarding the acquisition of Freescale. Accumulated Translation differences Accumulated HPMS (154 ) — (154 ) SP (32 ) — (32 ) Corporate and Other (1) — — — (186 ) — (186 ) (1) Corporate and Other is not a segment under ASC 280 “Segment Reporting”. |
Geographical Segment Report | Geographical Information Revenue (1) Property, plant and equipment 2016 2015 2014 2016 2015 2014 China 3,882 3,135 2,756 251 360 116 Netherlands 285 177 171 183 161 169 United States 906 415 396 922 1,115 5 Singapore 984 526 452 166 186 200 Germany 623 392 450 52 98 80 Japan 550 316 245 1 2 1 South Korea 369 268 287 — 1 1 Malaysia 231 41 47 378 473 79 Other countries 1,668 831 843 399 526 472 9,498 6,101 5,647 2,352 2,922 1,123 (1) Revenue attributed to geographic areas is based on the customer’s shipped-to |
The Company - Additional Inform
The Company - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 06, 2017 | Oct. 27, 2016 | Dec. 07, 2015 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Early termination agreement fee | $ (1,250) | |||
Subsequent Event [Member] | SP [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash proceeds | $ 2,750 | |||
Qualcomm [Member] | ||||
Business Acquisition [Line Items] | ||||
Tender offer to acquire issued and outstanding common shares, per share | $ 110 | |||
Tender offer equity ownership interest percentage | 80.00% | 95.00% | ||
Payments to acquire business | $ 38,000 | |||
Early termination agreement fee | $ 2,000 | |||
Qualcomm [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Tender offer minimum contingent equity ownership interest threshold percentage | 70.00% | |||
Freescale Semiconductor, Ltd. [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition date | Dec. 7, 2015 | |||
Payments to acquire business | $ 1,948 |
Significant Accounting Polici55
Significant Accounting Policies - Exchange Rates for U.S. Dollars into Euros Applicable for Translation of NXP's Financial Statements (Detail) - € / $ | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Period End [Member] | ||||
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | 1.0474 | 1.0915 | 1.2155 | |
Average [Member] | ||||
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | [1] | 1.1065 | 1.1150 | 1.3262 |
Maximum [Member] | ||||
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | 1.0474 | 1.0869 | 1.2155 | |
Minimum [Member] | ||||
Financial Statement Details [Line Items] | ||||
Exchange rates for U.S. dollars into euros | 1.1423 | 1.2155 | 1.3857 | |
[1] | The average of the noon-buying rate at the end of each fiscal month during the period presented. |
Significant Accounting Polici56
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Accounting Policies [Line Items] | |||
Gross notional amount | $ 789,000,000 | $ 213,000,000 | |
Minimum employment period for recognizing termination benefits | 60 days | ||
Percentage of income tax benefit recognized | 50.00% | ||
Percentage of fair value of plan assets | 10.00% | ||
Distributors Concentration Risk [Member] | Distributor A [Member] | Sales Revenue, Net [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue from a single external customer | 13.00% | 14.00% | 13.00% |
Distributors Concentration Risk [Member] | Distributor B [Member] | Sales Revenue, Net [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue from a single external customer | 14.00% | 13.00% | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Attributable to hedged risk | 80.00% | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Attributable to hedged risk | 125.00% | ||
Minimum Threshold For Disclosure [Member] | Distributors Concentration Risk [Member] | Distributor B [Member] | Sales Revenue, Net [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue from a single external customer | 10.00% | ||
Minimum Threshold For Disclosure [Member] | Distributors Concentration Risk [Member] | Other Distributor [Member] | Sales Revenue, Net [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue from a single external customer | 10.00% | 10.00% | 10.00% |
Minimum Threshold For Disclosure [Member] | Distributors Concentration Risk [Member] | OEMs [Member] | Sales Revenue, Net [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of revenue from a single external customer | 10.00% | 10.00% | 10.00% |
Stock Options [Member] | |||
Significant Accounting Policies [Line Items] | |||
Vesting period | 4 years | ||
Restricted Share Units [Member] | |||
Significant Accounting Policies [Line Items] | |||
Vesting period | 3 years | ||
Performance Share Units [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Vesting period | 1 year | ||
Performance Share Units [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Vesting period | 3 years |
Significant Accounting Polici57
Significant Accounting Policies - Gross Notional Amounts by Currency (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | $ 789,000,000 | $ 213,000,000 |
Euro [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 459,000,000 | 4,000,000 |
Chinese Renminbi [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 45,000,000 | (28,000,000) |
Japanese Yen [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 35,000,000 | 26,000,000 |
Malaysian Ringgit [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 73,000,000 | 60,000,000 |
Taiwan Dollar [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 94,000,000 | 78,000,000 |
Thai Baht [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | 43,000,000 | 30,000,000 |
Other [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount | $ 40,000,000 | $ 43,000,000 |
Acquisitions and Divestments -
Acquisitions and Divestments - Additional Information (Detail) $ / shares in Units, $ in Millions | Aug. 08, 2016USD ($) | Dec. 07, 2015USD ($)$ / sharesshares | Feb. 28, 2015 | Dec. 31, 2016USD ($)Business | Dec. 31, 2015USD ($) | Dec. 31, 2014Business |
Business Acquisition [Line Items] | ||||||
Number of material divestments | Business | 0 | |||||
Purchase price allocation to goodwill | $ 14 | $ 7,464 | ||||
Purchase price allocation to other intangible assets | $ 8,464 | |||||
Other intangible assets, amortization period | 5 years | |||||
Number of acquisitions and divestments | Business | 0 | |||||
JianGuang Asset Management Co. Ltd. [Member] | Bipolar Power Business [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investment ownership percentage | 49.00% | |||||
Divestments closing date | Nov. 9, 2015 | |||||
JianGuang Asset Management Co. Ltd. [Member] | Bipolar Power and RF Power Businesses [Member] | Other Income (Expense) [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Gain (loss) on sale of business | 1,257 | |||||
Freescale Semiconductor, Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business | 1,948 | |||||
Purchase price allocation to inventories | 1,280 | |||||
Purchase price allocation to tangible fixed assets | 1,827 | |||||
Purchase price | $ 11,639 | |||||
Number of shares issuable for each ordinary share of acquiree | shares | 0.3521 | |||||
Cash consideration payable for each ordinary share of acquiree | $ / shares | $ 6.25 | |||||
Acquisition related transaction costs | $ 42 | |||||
Deferred taxes, purchase accounting adjustment | $ 33 | |||||
Accounts payable, accrued liabilities and other current liabilities, purchase accounting adjustment | 3 | |||||
Inventories, net, purchase accounting adjustment | 5 | |||||
Goodwill, purchase accounting adjustment | $ 25 | |||||
Purchase price allocation net liabilities assumed | $ 4,224 | |||||
Freescale Semiconductor, Ltd. [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of identified intangible assets | 1 year | |||||
Freescale Semiconductor, Ltd. [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of identified intangible assets | 19 years | |||||
Bluetooth Low Energy and Wearable Businesses and Athena SCS Limited [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price allocation to goodwill | 40 | |||||
Purchase price allocation to other intangible assets | 68 | |||||
Purchase price consideration | 102 | |||||
Purchase price allocation net liabilities assumed | 6 | |||||
Bluetooth Low Energy and Wearable Businesses and Athena SCS Limited [Member] | Core Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price allocation to other intangible assets | 29 | |||||
Bluetooth Low Energy and Wearable Businesses and Athena SCS Limited [Member] | Existing Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price allocation to other intangible assets | 17 | |||||
Bluetooth Low Energy and Wearable Businesses and Athena SCS Limited [Member] | In-Process Research and Development [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price allocation to other intangible assets | $ 22 | |||||
Bluetooth Low Energy and Wearable Businesses and Athena SCS Limited [Member] | Maximum [Member] | Core Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets, amortization period | 14 years | |||||
Bluetooth Low Energy and Wearable Businesses and Athena SCS Limited [Member] | Maximum [Member] | Existing Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets, amortization period | 5 years | |||||
Other Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business | $ 200 | |||||
Purchase price allocation to goodwill | 14 | |||||
Purchase price allocation to other intangible assets | 177 | |||||
Purchase price allocation to inventories | 8 | |||||
Purchase price allocation to tangible fixed assets | 1 | |||||
Other Acquisition [Member] | Core Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price allocation to other intangible assets | $ 172 | |||||
Other intangible assets, amortization period | 7 years | |||||
Other Acquisition [Member] | Existing Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price allocation to other intangible assets | $ 5 | |||||
Other intangible assets, amortization period | 2 years |
Acquisitions and Divestments 59
Acquisitions and Divestments - Schedule of Total Purchase Price (Detail) - Freescale Semiconductor, Ltd. [Member] $ in Millions | Dec. 07, 2015USD ($) |
Business Acquisition [Line Items] | |
Cash payment of $6.25 per Freescale common share | $ 1,948 |
Total purchase price | 11,639 |
Common Stock [Member] | |
Business Acquisition [Line Items] | |
Total value of NXP shares delivered | 9,449 |
Restricted Share Units and Performance Based Restricted Share Units [Member] | |
Business Acquisition [Line Items] | |
Total value of NXP shares delivered | 157 |
Stock Options [Member] | |
Business Acquisition [Line Items] | |
Total value of NXP shares delivered | $ 85 |
Acquisitions and Divestments 60
Acquisitions and Divestments - Schedule of Total Purchase Price (Parenthetical) (Detail) | Dec. 07, 2015$ / shares |
Freescale Semiconductor, Ltd. [Member] | |
Business Acquisition [Line Items] | |
Cash consideration payable for each ordinary share of acquiree | $ 6.25 |
Acquisitions and Divestments 61
Acquisitions and Divestments - Allocation of Purchase Price (Detail) - Freescale Semiconductor, Ltd. [Member] $ in Millions | Dec. 07, 2015USD ($) |
Business Acquisition [Line Items] | |
Total purchase price | $ 11,639 |
Estimated fair value of net tangible assets acquired and liabilities assumed: | |
Cash and cash equivalents | 427 |
Accounts receivable, net | 511 |
Inventories, net | 1,280 |
Other current assets | 93 |
Property, plant and equipment | 1,827 |
Other non-current assets | 64 |
Accounts payable, accrued liabilities and other current liabilities | (714) |
Deferred taxes | (2,292) |
Other long-term liabilities | (329) |
Long-term debt | (5,091) |
Estimated fair value of net tangible assets acquired and liabilities assumed | $ (4,224) |
Acquisitions and Divestments 62
Acquisitions and Divestments - Fair Value (and Useful Lives) of Identified Intangible Assets Acquired (Detail) - USD ($) $ in Millions | Dec. 07, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset | $ 299 | $ 8,551 | ||
Identified intangible assets acquired excluding goodwill | $ 8,464 | |||
Goodwill | 7,399 | $ 8,843 | $ 9,228 | $ 2,121 |
In-Process Research and Development [Member] | ||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Indefinite lived intangible asset | 2,017 | |||
Other Intangible Assets [Member] | ||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Indefinite lived intangible asset | 41 | |||
Customer-related [Member] | ||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset | 764 | |||
Developed Technology [Member] | ||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset | 5,371 | |||
Sales Order Backlog [Member] | ||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset | 190 | |||
Trade Names [Member] | ||||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset | $ 81 |
Acquisitions and Divestments 63
Acquisitions and Divestments - Fair Value (and Useful Lives) of Identified Intangible Assets Acquired (Parenthetical) (Detail) | Dec. 07, 2015 |
Customer-related [Member] | |
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 19 years |
Developed Technology [Member] | |
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
Sales Order Backlog [Member] | |
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 1 year |
Trade Names [Member] | |
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
Acquisitions and Divestments 64
Acquisitions and Divestments - Schedule of Pro Forma Financial Information Presents Combined Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Revenue | $ 9,850 | $ 9,904 |
Net income (loss) attributable to stockholders | $ (84) | $ (277) |
Net income (loss) per common share attributable to stockholders: | ||
- Basic | $ (0.25) | $ (0.81) |
- Diluted | $ (0.25) | $ (0.81) |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) - USD ($) $ in Millions | Feb. 06, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds | $ 20 | $ 1,605 | $ 1 | |
SP [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Subsequent Event [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds | $ 2,750 |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Carrying Value of Assets and Liabilities Held for Sale (Detail) - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] $ in Millions | Dec. 31, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Trade accounts receivable, net | $ 3 |
Other assets | 28 |
Inventories, net | 208 |
Property, plant and equipment, net | 396 |
Identified intangible assets, net | 133 |
Goodwill | 336 |
Assets held for sale | 1,104 |
Trade accounts payable | (110) |
Accrued and other liabilities | (88) |
Liabilities held for sale | $ (198) |
Supplemental Financial Inform67
Supplemental Financial Information - Depreciation, Amortization and Impairment (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Property, Plant and Equipment [Line Items] | ||||
Depreciation of property, plant and equipment | $ 609 | $ 262 | $ 219 | |
Amortization of intangible assets | 1,507 | 255 | ||
Depreciation, amortization and impairment | 2,205 | 517 | 405 | |
Computer Software, Intangible Asset [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization of intangible assets | 24 | 26 | 31 | |
Other Intangible Assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization of intangible assets | [1] | $ 1,572 | $ 229 | $ 155 |
[1] | Includes impairment charges relative to IPR&D, which was acquired as part of the acquisition of Freescale of $89 million for 2016. |
Supplemental Financial Inform68
Supplemental Financial Information - Depreciation, Amortization and Impairment (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Freescale Semiconductor, Ltd. [Member] | In-Process Research and Development [Member] | |
Property, Plant and Equipment [Line Items] | |
Impairment charges | $ 89 |
Supplemental Financial Inform69
Supplemental Financial Information - Other Income (Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Result on disposal of businesses | $ 8 | $ 1,257 | $ 6 |
Result on disposal of properties | 1 | 6 | 3 |
Other income (expense) | 1 | ||
Other income (expense), net | $ 9 | $ 1,263 | $ 10 |
Supplemental Financial Inform70
Supplemental Financial Information - Financial Income (Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Income Statement Elements [Abstract] | |||
Interest income | $ 11 | $ 6 | $ 3 |
Interest expense | (408) | (227) | (158) |
Total interest expense, net | (397) | (221) | (155) |
Net gain (loss) on extinguishment of debt | (32) | (3) | |
Foreign exchange rate results | (15) | (193) | (246) |
Change in fair value of the warrant liability | (31) | (2) | |
Miscellaneous financing costs/income, net | (9) | (84) | (4) |
Total other financial income (expense) | (56) | (308) | (255) |
Total | $ (453) | $ (529) | $ (410) |
Supplemental Financial Inform71
Supplemental Financial Information - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Financial Information [Line Items] | ||||
Net investment in U.S. dollar functional currency | $ 789,000,000 | $ 213,000,000 | ||
Cash and cash equivalents | 1,894,000,000 | 1,614,000,000 | $ 1,185,000,000 | $ 670,000,000 |
SSMC [Member] | ||||
Supplemental Financial Information [Line Items] | ||||
Cash and cash equivalents | 316,000,000 | 485,000,000 | ||
Dividend distribution | $ 325,000,000 | 130,000,000 | ||
TSMC [Member] | ||||
Supplemental Financial Information [Line Items] | ||||
Dividend percentage to joint venture | 38.80% | |||
ASMC [Member] | ||||
Supplemental Financial Information [Line Items] | ||||
Quoted market price | $ 35,000,000 | |||
Notes Payable to Banks [Member] | USD Notes [Member] | Net Investment Hedge [Member] | ||||
Supplemental Financial Information [Line Items] | ||||
F/X result on net investment hedge instruments | $ (190,000,000) | $ (214,000,000) |
Supplemental Financial Inform72
Supplemental Financial Information - Results Relating to Equity-Accounted Investees (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Company's share in income (loss) | $ 11 | $ 8 | $ 8 |
Other results | 1 | ||
Results relating to equity-accounted investees | $ 11 | $ 9 | $ 8 |
Supplemental Financial Inform73
Supplemental Financial Information - Summary of Carrying Value of Investments in Equity-Accounted Investees (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Amount | $ 154 | $ 141 |
ASMC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 27.00% | 27.00% |
Amount | $ 21 | $ 21 |
ASEN [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 40.00% | 40.00% |
Amount | $ 56 | $ 46 |
WeEn [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Shareholding % | 49.00% | 49.00% |
Amount | $ 62 | $ 59 |
Others [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Amount | $ 15 | $ 15 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Employee severance costs included in restructuring liabilities | $ 52 | $ 239 | ||
Employee severance costs | $ 216 | |||
Other exit costs | 23 | |||
Total restructuring liabilities | 240 | 151 | 240 | $ 40 |
Restructuring liabilities - current | 197 | 129 | 197 | |
Restructuring liabilities - non current | $ 43 | 22 | $ 43 | |
Personnel Lay-Off Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee severance costs included in restructuring liabilities | $ 52 |
Restructuring Charges - Summary
Restructuring Charges - Summary of Changes in Position of Restructuring Liabilities by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | $ 240 | $ 40 | |
Additions | 52 | 239 | |
Utilized | (133) | (46) | |
Released | (3) | (2) | |
Other changes | (5) | [1] | 9 |
Ending Balance | 151 | 240 | |
HPMS [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 234 | 14 | |
Additions | 52 | 226 | |
Utilized | (131) | (17) | |
Released | (3) | (1) | |
Other changes | (4) | [1] | 12 |
Ending Balance | 148 | 234 | |
SP [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 6 | 5 | |
Additions | 8 | ||
Utilized | (2) | (6) | |
Other changes | (1) | [1] | (1) |
Ending Balance | $ 3 | 6 | |
Corporate and Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 21 | ||
Additions | 5 | ||
Utilized | (23) | ||
Released | (1) | ||
Other changes | $ (2) | ||
[1] | Other changes primarily related to translation differences and internal transfers. |
Restructuring Charges - Compone
Restructuring Charges - Components of Restructuring Charges Less Releases Recorded in Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ 68 | $ 264 | $ 28 |
Personnel Lay-Off Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 52 | 239 | 43 |
Other Exit Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 19 | 27 | 1 |
Release of Provisions/Accruals [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ (3) | $ (2) | $ (16) |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Charges Less Releases Recorded in Liabilities Per Line Item in Statement of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ 68 | $ 264 | $ 28 |
Cost of Revenue [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 18 | 18 | 16 |
Selling, General and Administrative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | 9 | 155 | 3 |
Research and Development [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charges | $ 41 | $ 91 | $ 9 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 06, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Line Items] | ||||||
Income (loss) before income taxes | $ (603) | $ 1,486 | $ 639 | |||
Income tax holiday expected to expire, year | 2,024 | |||||
Foreign taxes decreases due to impact of tax holiday | $ 24 | $ 29 | ||||
Benefit of tax holiday on net income per share (diluted) | $ 0.07 | $ 0.11 | ||||
Increase (decrease) in valuation allowance | $ (505) | $ 5 | ||||
Benefit (provision) for income taxes | (851) | (104) | 40 | |||
Capital in excess of par value | $ 15,679 | 15,679 | 15,150 | |||
Tax loss carryforwards | 1,899 | 1,899 | ||||
Tax credit carryforwards | 749 | 749 | ||||
Net income tax payable excluding liability for unrecognized tax benefits | 10 | 10 | 26 | |||
Deferred tax liability recognized in undistributed earnings of foreign subsidiaries | 367 | 367 | 359 | |||
Total unrecognized tax benefits, if recognized, would impact the effective tax rate | 125 | 125 | ||||
Unrecognized tax benefits relates to interest and penalties | 2 | 7 | 3 | |||
Liability for related interest and penalties | 12 | 12 | $ 14 | $ 7 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | SP [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Benefit (provision) for income taxes | (392) | |||||
Capital in excess of par value | 7 | 7 | ||||
Subsequent Event [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | SP [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Increase (decrease) in valuation allowance | $ (395) | |||||
United States [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Increase (decrease) in valuation allowance | $ (107) | |||||
Tax loss carryforwards | $ 270 | $ 270 |
Provision for Income Taxes - Co
Provision for Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Netherlands | $ 537 | $ 1,528 | $ 398 |
Foreign | (1,140) | (42) | 241 |
Income (loss) before income taxes | $ (603) | $ 1,486 | $ 639 |
Provision for Income Taxes - 80
Provision for Income Taxes - Components of Benefit (Provision) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current taxes: | |||
Netherlands, Current taxes | $ (7) | $ (13) | $ (7) |
Foreign, Current taxes | (67) | (51) | (32) |
Total Current taxes | (74) | (64) | (39) |
Deferred taxes: | |||
Netherlands, Deferred taxes | 205 | (4) | 2 |
Foreign, Deferred taxes | 720 | 172 | (3) |
Total Deferred taxes | 925 | 168 | (1) |
Total benefit (provision) for income taxes | $ 851 | $ 104 | $ (40) |
Provision for Income Taxes - Re
Provision for Income Taxes - Reconciliation of Statutory Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax in the Netherlands | 25.00% | 25.00% | 25.00% |
Rate differential local statutory rates versus statutory rate of the Netherlands | 24.20% | (4.30%) | (2.50%) |
Net change in valuation allowance | 72.60% | (13.80%) | 2.40% |
Prior year adjustments | 0.10% | 0.50% | |
Non-taxable income | 1.70% | (0.10%) | (0.30%) |
Non-deductible expenses/losses | (7.00%) | 4.00% | 5.60% |
Sale of non-deductible goodwill | 2.70% | ||
Other taxes and tax rate changes | 7.10% | 1.00% | |
Tax effects of remitted and unremitted earnings and withholding taxes | (2.70%) | 0.10% | 1.30% |
Tax on gains related to internal corporate reorganization transactions | (10.30%) | ||
Unrecognized tax benefits | (0.50%) | 0.10% | 0.60% |
Netherlands tax incentives | 17.90% | (18.50%) | (21.50%) |
Foreign tax incentives | 13.00% | (3.20%) | (4.80%) |
Effective tax rate | 141.10% | (7.00%) | 6.30% |
Provision for Income Taxes - Pr
Provision for Income Taxes - Principal Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Operating loss and tax credit carryforwards | $ 1,031 | $ 963 |
Accrued interest | 432 | 545 |
Other accrued liabilities | 107 | 147 |
Pensions | 86 | 87 |
Stock Based Compensation | 58 | 73 |
Restructuring | 40 | 61 |
Receivables | 36 | 11 |
Inventories (including purchase accounting basis difference) | 27 | (109) |
Other assets | 10 | 9 |
Long-term debt | 179 | |
Total Gross Deferred Tax Assets | 1,827 | 1,966 |
Valuation Allowance | (127) | (632) |
Total Net Deferred Tax Assets | 1,700 | 1,334 |
Intangible assets (including purchase accounting basis difference) | (2,431) | (2,952) |
Undistributed earnings of foreign subsidiaries | (367) | (359) |
Property, plant and equipment (including purchase accounting basis difference) | (134) | (226) |
Total Deferred Tax Liabilities | (2,932) | (3,537) |
Net deferred tax assets (liabilities) | $ (1,232) | $ (2,203) |
Provision for Income Taxes - Cl
Provision for Income Taxes - Classification of Deferred Tax Assets and Liabilities in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets within other current assets | $ 26 | |
Deferred tax assets within other non-current assets | $ 427 | 69 |
Deferred tax liabilities within accrued liabilities | (5) | |
Deferred tax liabilities within non-current liabilities | (1,659) | (2,293) |
Net deferred tax assets (liabilities) | $ (1,232) | $ (2,203) |
Provision for Income Taxes - Ex
Provision for Income Taxes - Expiration of Tax Loss Carryforwards (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 1,899 |
2017 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 26 |
2018 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 10 |
2019 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 29 |
2020 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 10 |
2021 Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 1 |
2022-2026 Tax Loss Credit Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 947 |
Later Tax Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | 290 |
Unlimited Tax Credit Loss Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carryforwards | $ 586 |
Provision for Income Taxes - 85
Provision for Income Taxes - Expiration of Tax Credit Carryforwards (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 749 |
2017 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 1 |
2018 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 8 |
2019 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 12 |
2020 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 32 |
2021 Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 18 |
2022-2026 Tax Loss Credit Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 336 |
Later Tax Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 282 |
Unlimited Tax Credit Loss Carryforwards [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 60 |
Provision for Income Taxes - 86
Provision for Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance as of January 1, | $ 149 | $ 125 | $ 143 |
Assumed in the acquisition of Freescale | 121 | ||
Decreases from activities which are held for sale | (7) | ||
Increases from tax positions taken during prior periods | 1 | 1 | |
Decreases from tax positions taken during prior periods | (3) | (111) | (21) |
Increases from tax positions taken during current period | 10 | 15 | 3 |
Decreases relating to settlements with the tax authorities | (4) | (2) | |
Balance as of December 31, | $ 146 | $ 149 | $ 125 |
Earnings per Share - Computatio
Earnings per Share - Computation of Earnings per Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 259 | $ 1,599 | $ 607 | |
Less: Net income (loss) attributable to non-controlling interests | 59 | 73 | 68 | |
Net income (loss) attributable to stockholders | $ 200 | $ 1,526 | $ 539 | |
Weighted average number of shares outstanding (after deduction of treasury shares) during the year | 338,477 | 239,764 | 237,954 | |
Plus incremental shares from assumed conversion of: | ||||
Options | [1] | 5,582 | 6,194 | 6,753 |
Restricted Share Units, Performance Share Units and Equity Rights | [2] | 3,548 | 4,158 | 3,902 |
Warrants | [3] | 0 | 0 | 0 |
Dilutive potential common share | 9,130 | 10,352 | 10,655 | |
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year | [1] | 347,607 | 250,116 | 248,609 |
Basic net income (loss) | $ 0.59 | $ 6.36 | $ 2.27 | |
Diluted net income (loss) | $ 0.58 | $ 6.10 | $ 2.17 | |
[1] | Stock options to purchase up to 1.4 million shares of NXP's common stock that were outstanding in 2016 (2015: 0.7 million shares; 2014: 0.5 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average fair market value of the common stock or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. | |||
[2] | Unvested RSU's, PSU's and equity rights of 0.9 million shares that were outstanding in 2016 (2015: 0.5 million shares; 2014: 1.2 million shares) were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense was greater than the weighted average number of outstanding unvested RSU's, PSU's and equity rights or the performance goal has not been met. | |||
[3] | Warrants to purchase up to 11.2 million shares of NXP's common stock at a price of $133.32 per share were outstanding in 2016 (2015: 11.2 million shares at a price of $133.32; 2014: nil). Upon exercise, the warrants will be net share settled. At the end of 2016 and 2015, the warrants were not included in the computation of diluted EPS because the warrants' exercise price was greater than the average fair market value of the common shares. |
Earnings per Share - Computat88
Earnings per Share - Computation of Earnings per Share (EPS) (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Exercise price of warrants | $ 133.32 | $ 133.32 | $ 0 |
Stock Options [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share amount | 1,400,000 | 700,000 | 500,000 |
Unvested RSU's, PSU's and Equity Rights [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share amount | 900,000 | 500,000 | 1,200,000 |
Warrant [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share amount | 11,200,000 | 11,200,000 | 0 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 338 | $ 216 | $ 133 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 49 | 15 | 10 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 123 | 45 | 20 |
Selling, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 166 | $ 156 | $ 103 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2016€ / shares | Dec. 31, 2015€ / shares | |
Long Term Incentive Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized and available for awards | shares | 3,000,000 | ||||
Charges for plan | $ 331,000,000 | $ 206,000,000 | $ 123,000,000 | ||
Risk-free interest rate, minimum | 0.80% | 0.80% | 0.80% | ||
Risk-free interest rate, maximum | 2.80% | 2.80% | 2.80% | ||
Expected dividend payments | $ 0 | ||||
Weighted average grant date fair value of stock options | $ / shares | $ 34.59 | $ 34.05 | $ 29.10 | ||
Intrinsic value of exercised options | $ 145,000,000 | $ 112,000,000 | $ 129,000,000 | ||
Amount received on stock options exercised | 88,000,000 | 39,000,000 | 55,000,000 | ||
Unrecognized compensation cost | $ 56,000,000 | $ 110,000,000 | |||
Weighted-average period for recognition of compensation cost | 1 year 6 months | 1 year 9 months 18 days | |||
Long Term Incentive Plans [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life | 5 years 9 months 4 days | ||||
Volatility rate | 40.00% | ||||
Long Term Incentive Plans [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life | 6 years 3 months | ||||
Volatility rate | 50.00% | ||||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average period for recognition of compensation cost | 1 year 9 months 18 days | 1 year 10 months 24 days | |||
Unrecognized compensation cost | $ 12,000,000 | $ 32,000,000 | |||
Fair value of vested shares | $ 147,000,000 | $ 66,000,000 | $ 70,000,000 | ||
Long Term Incentive Plans [Member] | Performance Share Units [Member] | Financial Performance Conditions [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of units granted | $ / shares | $ 82.53 | $ 75.28 | $ 62.29 | ||
Long Term Incentive Plans [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average period for recognition of compensation cost | 1 year 7 months 6 days | 1 year 7 months 6 days | |||
Weighted average grant date fair value of units granted | $ / shares | $ 98.16 | $ 79.22 | $ 63.42 | ||
Unrecognized compensation cost | $ 422,000,000 | $ 432,000,000 | |||
Fair value of vested shares | 334,000,000 | 209,000,000 | $ 110,000,000 | ||
Management Equity Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Charges for plan | 0 | 0 | 0 | ||
Intrinsic value of exercised options | 13,000,000 | 12,000,000 | 74,000,000 | ||
Amount received on stock options exercised | 7,000,000 | $ 4,000,000 | $ 86,000,000 | ||
Unrecognized compensation cost | $ 0 | ||||
Number of vested stock options | shares | 2,534,272 | 2,748,942 | |||
Weighted average exercise price of vested options | € / shares | € 23.67 | € 24.14 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Options and Changes (Long Term Incentive Plans) (Detail) - Long Term Incentive Plans [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, Outstanding at January 1, 2016 | shares | 10,034,650 |
Stock options, Granted | shares | 108,419 |
Stock options, Exercised | shares | 2,734,739 |
Stock options, Forfeited | shares | 239,678 |
Stock options, Outstanding at December 31, 2016 | shares | 7,168,652 |
Stock options, Exercisable at December 31, 2016 | shares | 4,857,680 |
Weighted average exercise price, Outstanding at January 1, 2016 | $ / shares | $ 38.53 |
Weighted average exercise price, Granted | $ / shares | 80.44 |
Weighted average exercise price, Exercised | $ / shares | 32.12 |
Weighted average exercise price, Forfeited | $ / shares | 54.81 |
Weighted average exercise price, Outstanding at December 31, 2016 | $ / shares | 41.07 |
Weighted average exercise price, Exercisable at December 31, 2016 | $ / shares | $ 30.97 |
Weighted average remaining contractual term, Outstanding at December 31, 2016 | 6 years |
Weighted average remaining contractual term, Exercisable at December 31, 2016 | 5 years 6 months |
Aggregate intrinsic value, Outstanding at December 31, 2016 | $ | $ 408 |
Aggregate intrinsic value, Exercisable at December 31, 2016 | $ | $ 326 |
Share-based Compensation - Su92
Share-based Compensation - Summary of Performance Share Units (Detail) - Long Term Incentive Plans [Member] - Performance Share Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial Performance Conditions [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at January 1, 2016 | 775,324 | ||
Shares, Granted | 32,716 | ||
Shares, Vested | 398,951 | ||
Shares, Forfeited | 375 | ||
Shares, Outstanding at December 31, 2016 | 408,714 | 775,324 | |
Weighted average grant date fair value, Outstanding at January 1, 2016 | $ 49.68 | ||
Weighted average grant date fair value, Granted | 82.53 | $ 75.28 | $ 62.29 |
Weighted average grant date fair value, Vested | 30 | ||
Weighted average grant date fair value, Forfeited | 49.60 | ||
Weighted average grant date fair value, Outstanding at December 31, 2016 | $ 71.52 | $ 49.68 | |
Market Performance Conditions [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at January 1, 2016 | 1,905,269 | ||
Shares, Vested | 1,580,086 | ||
Shares, Outstanding at December 31, 2016 | 325,183 | 1,905,269 | |
Weighted average grant date fair value, Outstanding at January 1, 2016 | $ 26.85 | ||
Weighted average grant date fair value, Vested | 27.28 | ||
Weighted average grant date fair value, Outstanding at December 31, 2016 | $ 38.63 | $ 26.85 |
Share-based Compensation - Su93
Share-based Compensation - Summary of Restricted Share Units (Detail) - Long Term Incentive Plans [Member] - Restricted Share Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at January 1, 2016 | 8,237,861 | ||
Shares, Granted | 2,739,672 | ||
Shares, Vested | 3,688,422 | ||
Shares, Forfeited | 368,232 | ||
Shares, Outstanding at December 31, 2016 | 6,920,879 | 8,237,861 | |
Weighted average grant date fair value, Outstanding at January 1, 2016 | $ 78.03 | ||
Weighted average grant date fair value, Granted | 98.16 | $ 79.22 | $ 63.42 |
Weighted average grant date fair value, Vested | 75.61 | ||
Weighted average grant date fair value, Forfeited | 76 | ||
Weighted average grant date fair value, Outstanding at December 31, 2016 | $ 87.48 | $ 78.03 |
Share-based Compensation - Su94
Share-based Compensation - Summary of Stock Options and Changes (Management Equity Stock Option Plan) (Detail) - 12 months ended Dec. 31, 2016 - Management Equity Stock Option Plan [Member] $ in Millions | USD ($)€ / sharesshares | € / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options, Outstanding at January 1, 2016 | shares | 2,748,942 | |
Stock options, Granted | shares | 0 | |
Stock options, Exercised | shares | 214,670 | |
Stock options, Forfeited | shares | 0 | |
Stock options, Expired | shares | 0 | |
Stock options, Outstanding at December 31, 2016 | shares | 2,534,272 | |
Stock options, Exercisable at December 31, 2016 | shares | 2,534,272 | |
Weighted average exercise price, Outstanding at January 1, 2016 | € / shares | € 24.14 | |
Weighted average exercise price, Granted | € / shares | 0 | |
Weighted average exercise price, Exercised | € / shares | 29.64 | |
Weighted average exercise price, Forfeited | € / shares | 0 | |
Weighted average exercise price, Expired | € / shares | 0 | |
Weighted average exercise price, Outstanding at December 31, 2016 | € / shares | € 23.67 | |
Weighted average exercise price, Exercisable at December 31, 2016 | € / shares | € 23.67 | |
Weighted average remaining contractual term, Outstanding at December 31, 2016 | 1 year 8 months 12 days | |
Weighted average remaining contractual term, Exercisable at December 31, 2016 | 1 year 8 months 12 days | |
Aggregate intrinsic value, Outstanding at December 31, 2016 | $ | € 177 | |
Aggregate intrinsic value, Exercisable at December 31, 2016 | $ | € 177 |
Accounts Receivables, Net - Acc
Accounts Receivables, Net - Accounts Receivables, net (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts receivable from third parties | $ 1,035 | $ 1,048 |
Allowance for doubtful accounts | (2) | (1) |
Accounts receivable | $ 1,033 | $ 1,047 |
Inventories, Net - Inventories,
Inventories, Net - Inventories, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 52 | $ 66 |
Work in process | 854 | 1,376 |
Finished goods | 207 | 437 |
Inventory net | $ 1,113 | $ 1,879 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Portion of finished goods stored at customer locations under consignment | $ 53 | $ 69 |
Allowance for obsolescence | $ 84 | $ 84 |
Property, Plant and Equipment98
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 4,666 | $ 5,505 | |
Less accumulated depreciation | (2,314) | (2,583) | |
Property, plant and equipment, net of accumulated depreciation | 2,352 | 2,922 | $ 1,123 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 111 | 160 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,153 | 854 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 9 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 50 years | ||
Machinery and Installations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 3,006 | 4,156 | |
Machinery and Installations [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 2 years | ||
Machinery and Installations [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 10 years | ||
Other Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 278 | 227 | |
Other Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 1 year | ||
Other Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 5 years | ||
Prepayments and Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 118 | $ 108 |
Property, Plant and Equipment99
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Gross | $ 4,666 | $ 5,505 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Gross | $ 111 | $ 160 |
Identified Intangible Assets -
Identified Intangible Assets - Summary of Changes in Identified Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning balance, Cost | $ 9,978 | $ 1,866 | ||
Beginning balance, Accumulated amortization/impairment | (1,188) | (1,293) | ||
Beginning balance, Book value | 8,790 | 573 | ||
Changes in book value: | ||||
Acquisitions/additions | 299 | 8,551 | ||
Transfer to assets held for sale | (138) | (38) | ||
Amortization | (1,507) | (255) | ||
Impairment | (89) | |||
Translation differences | (12) | (41) | ||
Total changes | (1,447) | 8,217 | ||
Ending balance, Cost | 9,512 | 9,978 | $ 1,866 | |
Ending balance, Accumulated amortization/impairment | (2,169) | (1,188) | (1,293) | |
Ending balance, Book value | 7,343 | 8,790 | 573 | |
Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning balance, Cost | 9,832 | 1,715 | ||
Beginning balance, Accumulated amortization/impairment | (1,083) | (1,207) | ||
Beginning balance, Book value | 8,749 | 508 | ||
Changes in book value: | ||||
Acquisitions/additions | 289 | 8,543 | ||
Transfer to assets held for sale | (138) | (38) | ||
Amortization | [1] | (1,572) | (229) | (155) |
Impairment | (89) | |||
Translation differences | (10) | (35) | ||
Total changes | (1,431) | 8,241 | ||
Ending balance, Cost | 9,397 | 9,832 | 1,715 | |
Ending balance, Accumulated amortization/impairment | (2,079) | (1,083) | (1,207) | |
Ending balance, Book value | 7,318 | 8,749 | 508 | |
Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Beginning balance, Cost | 146 | 151 | ||
Beginning balance, Accumulated amortization/impairment | (105) | (86) | ||
Beginning balance, Book value | 41 | 65 | ||
Changes in book value: | ||||
Acquisitions/additions | 10 | 8 | ||
Amortization | (24) | (26) | ||
Translation differences | (2) | (6) | ||
Total changes | (16) | (24) | ||
Ending balance, Cost | 115 | 146 | 151 | |
Ending balance, Accumulated amortization/impairment | (90) | (105) | (86) | |
Ending balance, Book value | $ 25 | $ 41 | $ 65 | |
[1] | Includes impairment charges relative to IPR&D, which was acquired as part of the acquisition of Freescale of $89 million for 2016. |
Identified Intangible Assets101
Identified Intangible Assets - Summary of Identified Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | $ 9,512 | $ 9,978 | ||
Accumulated amortization | (2,169) | (1,188) | $ (1,293) | |
In-Process Research and Development [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | [1] | 1,380 | 2,016 | |
Accumulated amortization | [1] | 0 | 0 | |
Marketing-related [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 81 | 119 | ||
Accumulated amortization | (18) | (18) | ||
Customer-related [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 1,146 | 1,287 | ||
Accumulated amortization | (322) | (224) | ||
Technology-Based Intangible Assets [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 6,790 | 6,410 | ||
Accumulated amortization | (1,739) | (841) | ||
Other Intangible Assets [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 9,397 | 9,832 | ||
Accumulated amortization | (2,079) | (1,083) | (1,207) | |
Software [Member] | ||||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Gross carrying amount | 115 | 146 | ||
Accumulated amortization | $ (90) | $ (105) | $ (86) | |
[1] | IPR&D is not subject to amortization until completion or abandonment of the associated research and development effort. |
Identified Intangible Assets102
Identified Intangible Assets - Schedule of Estimated Amortization Expense for Identified Intangible Assets, excluding Software (Detail) - Other Intangible Assets [Member] $ in Millions | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 1,423 |
2,018 | 1,432 |
2,019 | 1,472 |
2,020 | 1,190 |
2,021 | $ 462 |
Identified Intangible Assets103
Identified Intangible Assets - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Expected weighted average remaining life of identified intangibles | 5 years |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Beginning balance, Cost | $ 9,414 | $ 2,328 |
Accumulated impairment at January 1, 2016 | (186) | (207) |
Beginning balance, Book value | 9,228 | 2,121 |
Changes in book value: | ||
Acquisitions | 14 | 7,464 |
Transfer to assets held for sale | (349) | (179) |
Translation differences | (25) | (178) |
Total changes | (385) | 7,107 |
Ending balance, Cost | 9,029 | 9,414 |
Accumulated impairment at December 31, 2016 | (186) | (186) |
Ending balance, Book value | 8,843 | $ 9,228 |
Freescale Semiconductor, Ltd. [Member] | ||
Changes in book value: | ||
Purchase accounting adjustments related to Freescale acquisition | $ (25) |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Aug. 08, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | |||
Goodwill impairment charges | $ 0 | $ 0 | |
Purchase price allocation to goodwill | $ 14,000,000 | $ 7,464,000,000 | |
Other Acquisition [Member] | |||
Goodwill [Line Items] | |||
Payments to acquire business | $ 200,000,000 | ||
Purchase price allocation to goodwill | $ 14,000,000 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)CompaniesParticipants | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2017 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Amount included in statement of operations | $ 102 | $ 69 | $ 77 | |
Defined contribution plans | 44 | 21 | 21 | |
PME multi-employer plans | 32 | 32 | 41 | |
Total cost of defined-benefit plans | 26 | 16 | 15 | |
Ongoing cost | 27 | 20 | 15 | |
Gain on curtailments and settlements | 1 | 4 | ||
Estimated net actuarial loss (gain) | 2 | |||
Estimated prior service cost | ||||
Pension plan assets | 172 | |||
Employer contribution to defined-benefit pension plans | 11 | |||
Expected cash payments to unfunded plans | 6 | |||
Accumulated postretirement health care benefit obligation | 18 | $ 54 | ||
German and Japanese [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Pension plan assets | $ 161 | |||
Increase [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Increase (decrease) of discount rate | 1.00% | |||
Increase (decrease) in net periodic pension cost | $ 3 | |||
Decrease [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Increase (decrease) of discount rate | 1.00% | |||
Increase (decrease) in net periodic pension cost | $ 4 | |||
PME Multi-Employer Plan [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Number of companies | Companies | 1,300 | |||
Number of participants | Participants | 616,000 | |||
Contribution rate | 26.10% | |||
PME Multi-Employer Plan [Member] | Scenario, Forecast [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Contribution rate | 25.80% |
Postretirement Benefit Plans107
Postretirement Benefit Plans - Summary of PME Multi-Employer Plan (Detail) - PME Multi-Employer Plan [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Employees | Dec. 31, 2015USD ($)Employees | Dec. 31, 2014USD ($)Employees | |
Multiemployer Plans [Line Items] | |||
NXP's contributions to the plan | $ 36 | $ 37 | $ 48 |
(including employees' contributions) | $ 4 | $ 4 | $ 4 |
Average number of NXP's active employees participating in the plan | Employees | 2,415 | 2,668 | 2,881 |
Postretirement Benefit Plans108
Postretirement Benefit Plans - Summary of PME Multi-Employer Plan (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
PME Multi-Employer Plan [Member] | |
Multiemployer Plans [Line Items] | |
Percentage of total contribution | 5.00% |
Postretirement Benefit Plans109
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | $ 17 | $ 12 | $ 10 |
Interest cost | 14 | 11 | 13 |
Fair value of plan assets at end of year | 172 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Total AOCI at beginning of year | 42 | 70 | |
Net actuarial loss (gain) | 54 | (21) | |
Exchange rate differences | (5) | (7) | |
Total AOCI at end of year | 91 | 42 | 70 |
Projected Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation at beginning of year | 561 | 447 | |
Service cost | 17 | 12 | |
Interest cost | 14 | 11 | |
Actuarial (gains) and losses | 53 | (18) | |
Curtailments and settlements | (15) | (16) | |
Benefits paid | (21) | (14) | |
Pension liabilities held-for-sale | (28) | ||
Benefit obligation assumed in acquisitions | 177 | ||
Exchange rate differences | (17) | (38) | |
Projected benefit obligation at end of year | 564 | 561 | 447 |
Plan Assets [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets at beginning of year | 190 | 157 | |
Actual return on plan assets | 3 | 7 | |
Employer contributions | 21 | 10 | |
Curtailments and settlements | (15) | (12) | |
Benefits paid | (21) | (14) | |
Pension assets held-for-sale | (2) | ||
Plan assets acquired in acquisitions | 56 | ||
Exchange rate differences | (4) | (14) | |
Fair value of plan assets at end of year | 172 | 190 | $ 157 |
Funded Plans with Assets Less than Accumulated Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Funded status | (392) | (371) | |
Classification of Funded Status [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Prepaid pension cost within other non-current assets | 4 | ||
Accrued pension cost within other non-current liabilities | (380) | (368) | |
Accrued pension cost within accrued liabilities | (12) | (7) | |
Funded status | (392) | (371) | |
Accumulated Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Accumulated benefit obligations | 524 | 518 | |
Plans with Assets Less Than Accumulated Benefit Obligation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets, Funded plans | 171 | 73 | |
Accumulated benefit obligations, Funded plans | 327 | 209 | |
Projected benefit obligations, Funded plans | 357 | 243 | |
Accumulated benefit obligations, Unfunded plans | 195 | 196 | |
Projected benefit obligations, Unfunded plans | $ 204 | $ 204 |
Postretirement Benefit Plans110
Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used to Calculate Projected Benefit Obligations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Pension and Other Postretirement Benefit Expense [Abstract] | ||
Discount rate | 2.00% | 2.50% |
Rate of compensation increase | 1.90% | 2.20% |
Postretirement Benefit Plans111
Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used Calculate Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |||
Discount rate | 2.50% | 2.60% | 3.70% |
Expected returns on plan assets | 3.50% | 4.20% | 4.20% |
Rate of compensation increase | 2.20% | 1.80% | 2.30% |
Postretirement Benefit Plans112
Postretirement Benefit Plans - Components of Net Periodic Pension Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |||
Service cost | $ 17 | $ 12 | $ 10 |
Interest cost on the projected benefit obligation | 14 | 11 | 13 |
Expected return on plan assets | (6) | (6) | (7) |
Amortization of net (gain) loss | 2 | 3 | (1) |
Curtailments and settlements | (1) | (6) | |
Other | 2 | ||
Net periodic cost | $ 26 | $ 16 | $ 15 |
Postretirement Benefit Plans113
Postretirement Benefit Plans - Summary of Actual Pension Plan Asset Allocation (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 29.00% | 29.00% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 52.00% | 55.00% |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 7.00% | 6.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual benefit plan asset allocation | 12.00% | 10.00% |
Postretirement Benefit Plans114
Postretirement Benefit Plans - Classification of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Level I [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | $ 14 | $ 10 |
Level I [Member] | Debt Securities [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 9 | 7 |
Level I [Member] | Other [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 5 | 3 |
Level II [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 143 | 152 |
Level II [Member] | Equity Securities [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 48 | 49 |
Level II [Member] | Debt Securities [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 72 | 81 |
Level II [Member] | Insurance Contracts [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 12 | 12 |
Level II [Member] | Other [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 11 | 10 |
Level III [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | 4 | 3 |
Level III [Member] | Other [Member] | ||
Major Funded Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||
Fair value of plan assets | $ 4 | $ 3 |
Postretirement Benefit Plans115
Postretirement Benefit Plans - Summary of Estimated Future Pension Benefit Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Pension and Other Postretirement Benefit Expense [Abstract] | |
2,017 | $ 21 |
2,018 | 16 |
2,019 | 17 |
2,020 | 18 |
2,021 | 20 |
Years 2022-2026 | $ 128 |
Debt - Schedule of Short-Term D
Debt - Schedule of Short-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Short-term bank borrowings | $ 6 | ||
Current portion of long-term debt | [1] | $ 421 | 550 |
Total | $ 421 | $ 556 | |
[1] | Net of adjustment for debt issuance costs. |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | Sep. 22, 2016 | Aug. 11, 2016 | Aug. 01, 2016 | May 23, 2016 | Apr. 27, 2016 | Feb. 23, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2016 | Nov. 30, 2014 |
Debt Instrument [Line Items] | |||||||||||
Short-term bank borrowings | $ 6,000,000 | ||||||||||
Weighted average interest rate | 2.50% | ||||||||||
Book value of outstanding long-term debt | $ 8,766,000,000 | $ 8,656,000,000 | |||||||||
Debt issuance costs | 61,000,000 | ||||||||||
Debt discount | $ 128,000,000 | 167,000,000 | |||||||||
Remaining tenor of debt | 4 years 1 month 6 days | ||||||||||
Interest accrued for debt | $ 48,000,000 | 46,000,000 | |||||||||
Principal amount of debt | 9,361,000,000 | 9,343,000,000 | |||||||||
Repayment of term loan | 38,000,000 | 32,000,000 | $ 15,000,000 | ||||||||
Annual repayment of Term Loan | 18,000,000 | ||||||||||
Portion of principal amount of long-term and short-term debt, secured by collateral | $ 2,211,000,000 | 4,943,000,000 | |||||||||
Debt instrument trading price, percentage | 98.00% | ||||||||||
Cash proceeds from the sale of the warrants | $ 134,000,000 | ||||||||||
Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Common stock exchange percentage threshold | 50.00% | ||||||||||
Percentage of consideration received by share holders | 90.00% | ||||||||||
Warrant [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Issue of warrants to purchase shares of common stock | 11,180 | ||||||||||
Exercise price | $ 133.32 | ||||||||||
Warrants expiration date | Mar. 2, 2020 | ||||||||||
Warrants expiration extended date | Apr. 30, 2020 | ||||||||||
Cash proceeds from the sale of the warrants | $ 134,000,000 | ||||||||||
Carrying value of the warrants | $ 168,000,000 | ||||||||||
Dollar Denominated Revolving Credit Facilities [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Revolving credit facility | $ 600,000,000 | ||||||||||
Senior Secured Term Loan B Due 2020 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 1,440,000,000 | ||||||||||
Senior Secured Term Loan Due 2020 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of term loan | $ 1,440,000,000 | ||||||||||
Notes due date | Dec. 7, 2020 | ||||||||||
2021 Additional Senior Unsecured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 500,000,000 | ||||||||||
Fixed rate on notes | 4.125% | ||||||||||
Additional notes issued price as percentage | 101.875% | ||||||||||
Senior Notes Due 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate on notes | 4.125% | ||||||||||
Debt issuance date | May 23, 2016 | ||||||||||
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 850,000,000 | $ 1,350,000,000 | 0 | ||||||||
Notes due date | Jun. 1, 2021 | ||||||||||
Fixed rate on notes | 4.125% | ||||||||||
Fair value of debt | $ 850,000,000 | ||||||||||
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2023 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 900,000,000 | $ 900,000,000 | 0 | ||||||||
Notes due date | Jun. 1, 2023 | ||||||||||
Fixed rate on notes | 4.625% | ||||||||||
Fair value of debt | $ 900,000,000 | ||||||||||
2021 and 2023 Senior Unsecured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, frequency of periodic payment | Semi-annually on June 1 and December 1 of each year | ||||||||||
Debt instrument, date of first required payment | Dec. 1, 2016 | ||||||||||
Fixed-Rate 3.5% Senior Unsecured Notes Maturing in September 2016 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 0 | 500,000,000 | |||||||||
Fixed rate on notes | 3.50% | ||||||||||
Repayment of senior debt | $ 200,000,000 | $ 100,000,000 | $ 200,000,000 | ||||||||
Fixed-Rate 3.875% Senior Unsecured Notes Maturing in September 2022 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 1,000,000,000 | $ 1,000,000,000 | 0 | ||||||||
Notes due date | Sep. 1, 2022 | ||||||||||
Fixed rate on notes | 3.875% | ||||||||||
Debt instrument, frequency of periodic payment | Semi-annually on March 1 and September 1 of each year | ||||||||||
Debt instrument, date of first required payment | Mar. 1, 2017 | ||||||||||
Fair value of debt | 1,000,000,000 | ||||||||||
2019 Cash Convertible Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt discount | $ (136,000,000) | (178,000,000) | |||||||||
Principal amount of debt | $ 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 | ||||||||
Notes due date | Dec. 1, 2019 | ||||||||||
Debt instrument, interest rate | 1.00% | ||||||||||
Fees and expenses capitalized as deferred financing costs | $ 16,000,000 | ||||||||||
Debt instrument trading price, percentage | 130.00% | ||||||||||
Initial cash conversion rate, shares | 9.7236 | ||||||||||
Initial cash conversion price, debt | $ 1,000 | ||||||||||
Cash conversion price | $ 102.84 | ||||||||||
Minimum principal amount on fundamental change repurchase date | $ 200,000 | ||||||||||
Cash Convertible Senior Notes, Description | If a "fundamental change" (as defined below in this section) occurs at any time, holders will have the right, at their option, to require us to repurchase for cash all of their 2019 Cash Convertible Senior Notes, or any portion of the principal thereof that is equal to $1,000 or a multiple of $1,000 (provided that the portion of any global note or certified note, as applicable, not tendered for repurchase has a principal amount of at least $200,000, on the fundamental change repurchase date. | ||||||||||
Fair value of Cash Convertible Senior Notes | $ 1,310,000,000 | ||||||||||
2019 Cash Convertible Senior Notes [Member] | Level II [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of notes | 258,000,000 | 241,000,000 | |||||||||
Loss on embedded cash conversion option | $ 17,000,000 | 38,000,000 | |||||||||
Fixed Rate Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of total notes | 76.00% | ||||||||||
Floating Rate Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of total notes | 24.00% | ||||||||||
Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Remaining tenor of debt | 4 years 1 month 6 days | ||||||||||
Notes Hedges [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate cost of the Notes Hedges | $ 208,000,000 | ||||||||||
Estimated fair value of the Notes Hedges | $ 258,000,000 | $ 241,000,000 | |||||||||
Senior Notes Due Two Thousand Sixteen [Member] | 2021 Additional Senior Unsecured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of senior debt | $ 200,000,000 | ||||||||||
Senior Secured Term Loan B Due 2020 [Member] | 2021 and 2023 Senior Unsecured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of term loan | 1,250,000,000 | ||||||||||
2021 Senior Unsecured Notes [Member] | 2021 and 2023 Senior Unsecured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of senior debt | $ 500,000,000 | ||||||||||
Senior Secured Notes Due Two Thousand Twenty Two [Member] | Fixed-Rate 3.875% Senior Unsecured Notes Maturing in September 2022 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of senior debt | $ 960,000,000 |
Debt - Summary of Outstanding L
Debt - Summary of Outstanding Long-Term Debt (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Aug. 11, 2016 | May 23, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||||
Debt instrument principal amount | $ 9,361,000,000 | $ 9,343,000,000 | |||
Liabilities arising from capital lease transactions | 15,000,000 | 31,000,000 | |||
Unamortized discounts, premiums and debt issuance costs | (61,000,000) | (82,000,000) | |||
Fair value of embedded cash conversion option | (128,000,000) | (167,000,000) | |||
Purchase accounting fair value adjustment Freescale Senior Secured Notes | 0 | 81,000,000 | |||
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments | 9,187,000,000 | 9,206,000,000 | |||
Long-term debt | |||||
Total debt, including unamortized discounts, premiums, debt issuance costs and fair value adjustments | 9,187,000,000 | 9,206,000,000 | |||
Current portion of long-term debt | [1] | (421,000,000) | (550,000,000) | ||
Long-term debt | $ 8,766,000,000 | 8,656,000,000 | |||
Floating-Rate Term Loan Maturing in March 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2017-03 | ||||
Debt instrument principal amount | $ 388,000,000 | $ 392,000,000 | |||
Debt instrument interest rate effective percentage | 2.77% | 2.75% | |||
Floating-Rate Term Loan Maturing in January 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2020-01 | ||||
Debt instrument principal amount | $ 387,000,000 | $ 391,000,000 | |||
Debt instrument interest rate effective percentage | 3.27% | 3.25% | |||
Floating-Rate Term Loan Maturing in December 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2020-12 | ||||
Debt instrument principal amount | $ 1,436,000,000 | $ 2,700,000,000 | |||
Debt instrument interest rate effective percentage | 3.27% | 3.75% | |||
Fixed-Rate 3.5% Senior Unsecured Notes Maturing in September 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2016-09 | ||||
Debt instrument principal amount | $ 0 | $ 500,000,000 | |||
Debt instrument interest rate effective percentage | 0.00% | 3.50% | |||
Fixed-Rate 3.75% Senior Unsecured Notes Maturing in June 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2018-06 | ||||
Debt instrument principal amount | $ 750,000,000 | $ 750,000,000 | |||
Debt instrument interest rate effective percentage | 3.75% | 3.75% | |||
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2020-06 | ||||
Debt instrument principal amount | $ 600,000,000 | $ 600,000,000 | |||
Debt instrument interest rate effective percentage | 4.125% | 4.125% | |||
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2021-06 | ||||
Debt instrument principal amount | $ 1,350,000,000 | $ 850,000,000 | $ 0 | ||
Debt instrument interest rate effective percentage | 4.125% | 0.00% | |||
Fixed-Rate 5.75% Senior Unsecured Notes Maturing in February 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2021-02 | ||||
Debt instrument principal amount | $ 500,000,000 | $ 500,000,000 | |||
Debt instrument interest rate effective percentage | 5.75% | 5.75% | |||
Fixed-Rate 5% Senior Secured Notes Maturing in May 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2021-05 | ||||
Debt instrument principal amount | $ 0 | $ 500,000,000 | |||
Debt instrument interest rate effective percentage | 0.00% | 5.00% | |||
Fixed-Rate 3.875% Senior Unsecured Notes Maturing in September 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2022-09 | ||||
Debt instrument principal amount | $ 1,000,000,000 | $ 1,000,000,000 | $ 0 | ||
Debt instrument interest rate effective percentage | 3.875% | 0.00% | |||
Fixed-Rate 6% Senior Secured Notes Maturing in January 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2022-01 | ||||
Debt instrument principal amount | $ 0 | $ 960,000,000 | |||
Debt instrument interest rate effective percentage | 0.00% | 6.00% | |||
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2022-06 | ||||
Debt instrument principal amount | $ 400,000,000 | $ 400,000,000 | |||
Debt instrument interest rate effective percentage | 4.625% | 4.625% | |||
Fixed-Rate 5.75% Senior Unsecured Notes Maturing in March 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2023-03 | ||||
Debt instrument principal amount | $ 500,000,000 | $ 500,000,000 | |||
Debt instrument interest rate effective percentage | 5.75% | 5.75% | |||
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2023-06 | ||||
Debt instrument principal amount | $ 900,000,000 | $ 900,000,000 | $ 0 | ||
Debt instrument interest rate effective percentage | 4.625% | 0.00% | |||
Fixed-Rate 1% Cash Convertible Notes Maturing in December 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2019-12 | ||||
Debt instrument principal amount | $ 1,150,000,000 | $ 1,150,000,000 | |||
Debt instrument interest rate effective percentage | 1.00% | 1.00% | |||
Floating-Rate Revolving Credit Facility Maturing in December 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | 2020-12 | ||||
Debt instrument principal amount | $ 0 | $ 0 | |||
Debt instrument interest rate effective percentage | 0.00% | 0.00% | |||
[1] | Net of adjustment for debt issuance costs. |
Debt - Summary of Outstandin119
Debt - Summary of Outstanding Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2016 |
Fixed-Rate 3.5% Senior Unsecured Notes Maturing in September 2016 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 3.50% |
Fixed-Rate 3.75% Senior Unsecured Notes Maturing in June 2018 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 3.75% |
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2020 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.125% |
Fixed-Rate 4.125% Senior Unsecured Notes Maturing in June 2021 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.125% |
Fixed-Rate 5.75% Senior Unsecured Notes Maturing in February 2021 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 5.75% |
Fixed-Rate 5% Senior Secured Notes Maturing in May 2021 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 5.00% |
Fixed-Rate 3.875% Senior Unsecured Notes Maturing in September 2022 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 3.875% |
Fixed-Rate 6% Senior Secured Notes Maturing in January 2022 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 6.00% |
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2022 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.625% |
Fixed-Rate 5.75% Senior Unsecured Notes Maturing in March 2023 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 5.75% |
Fixed-Rate 4.625% Senior Unsecured Notes Maturing in June 2023 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 4.625% |
Fixed-Rate 1% Cash Convertible Notes Maturing in December 2019 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate on notes | 1.00% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Average rate of interest | 3.70% | ||
Principal amount outstanding | $ 9,361,000,000 | $ 9,343,000,000 | |
Due in 2017 | 421,000,000 | ||
Due after 2017 | 8,955,000,000 | ||
Due after 2021 | $ 2,800,000,000 | ||
Average remaining term (in years) | 4 years 1 month 6 days | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | [1] | 0.00% | |
Average rate of interest | [1] | 0.00% | |
Principal amount outstanding | [1] | $ 0 | 0 |
Due in 2017 | [1] | 0 | |
Due after 2017 | [1] | 0 | |
Due after 2021 | [1] | $ 0 | |
Average remaining term (in years) | [1] | 0 years | |
Notes Payable to Banks [Member] | USD Notes [Member] | |||
Debt Instrument [Line Items] | |||
Average rate of interest | 4.10% | ||
Principal amount outstanding | $ 8,211,000,000 | 8,193,000,000 | |
Due in 2017 | 406,000,000 | ||
Due after 2017 | 7,805,000,000 | ||
Due after 2021 | $ 2,800,000,000 | ||
Average remaining term (in years) | 4 years 2 months 12 days | ||
Notes Payable to Banks [Member] | USD Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 2.80% | ||
Notes Payable to Banks [Member] | USD Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 5.80% | ||
Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Average rate of interest | 1.00% | ||
Principal amount outstanding | $ 1,150,000,000 | 1,150,000,000 | |
Due in 2017 | 0 | ||
Due after 2017 | 1,150,000,000 | ||
Due after 2021 | $ 0 | ||
Average remaining term (in years) | 2 years 10 months 24 days | ||
Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 1.00% | ||
Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 1.00% | ||
Bank Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 0.00% | ||
Average rate of interest | 0.00% | ||
Principal amount outstanding | $ 0 | 0 | |
Due in 2017 | 0 | ||
Due after 2017 | 0 | ||
Due after 2021 | $ 0 | ||
Average remaining term (in years) | 0 years | ||
Capital Lease [Member] | |||
Debt Instrument [Line Items] | |||
Average rate of interest | 3.00% | ||
Principal amount outstanding | $ 15,000,000 | $ 31,000,000 | |
Due in 2017 | 15,000,000 | ||
Due after 2017 | 0 | ||
Due after 2021 | $ 0 | ||
Average remaining term (in years) | 1 year 3 months 18 days | ||
Capital Lease [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 2.50% | ||
Capital Lease [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of interest rates | 13.80% | ||
[1] | We do not have any borrowings under the $600 million Revolving Credit Facility as of December 31, 2016. |
Debt - Schedule of Long-Term121
Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) - Dollar Denominated Revolving Credit Facilities [Member] | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
Borrowings outstanding | $ 0 |
Revolving credit facility | $ 600,000,000 |
Debt - Principal Amounts of Lon
Debt - Principal Amounts of Long-Term Debt (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 421,000,000 | |
2,018 | 768,000,000 | |
2,019 | 1,167,000,000 | |
2,020 | 2,370,000,000 | |
2,021 | 1,850,000,000 | |
Due after 5 years | 2,800,000,000 | |
Amount outstanding | $ 9,361,000,000 | $ 9,343,000,000 |
Debt - Summary of Principal Amo
Debt - Summary of Principal Amount, Unamortized Debt Discount and Net Carrying Amount of Liability Component (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2014 |
Debt Instrument [Line Items] | |||
Principal amount | $ 9,361,000,000 | $ 9,343,000,000 | |
Unamortized debt discount | (128,000,000) | (167,000,000) | |
2019 Cash Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 |
Unamortized debt discount | 136,000,000 | 178,000,000 | |
Net liability | $ 1,014,000,000 | $ 972,000,000 |
Debt - Summary of Effective Int
Debt - Summary of Effective Interest Rate, Contractual Interest Expense and Amortization of Debt Discount (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Amortization of debt discount | $ 34 | $ 39 | $ 3 |
2019 Cash Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.14% | 5.14% | |
Contractual interest expense | $ 12 | $ 12 | |
Amortization of debt discount | $ 40 | $ 38 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitment And Contingencies [Line Items] | |||
Long-term operating lease commitments | $ 113,000,000 | $ 172,000,000 | |
Capital lease obligations | $ 0 | 0 | |
Long-term operating lease commitments expiration | These leases expire at various dates during the next 30 years. | ||
Rent expense | $ 68,000,000 | 70,000,000 | $ 63,000,000 |
Purchase commitments | $ 550,000,000 | ||
Purchase commitments due period | 2,025 | ||
Accrued legal fees | $ 22,000,000 | $ 28,000,000 | |
Environmental remediation costs | 84,000,000 | ||
Minimum [Member] | |||
Commitment And Contingencies [Line Items] | |||
Range of possible loss | 0 | ||
Maximum [Member] | |||
Commitment And Contingencies [Line Items] | |||
Range of possible loss | $ 125,000,000 |
Commitments and Contingencie126
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract] | ||
2,017 | $ 33 | |
2,018 | 23 | |
2,019 | 17 | |
2,020 | 12 | |
2,021 | 5 | |
Thereafter | 23 | |
Total future minimum leases payments | $ 113 | $ 172 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) € / shares in Units, € in Millions, $ in Millions | Dec. 31, 2016USD ($)shares | Dec. 31, 2016EUR (€)€ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015EUR (€)€ / sharesshares |
Equity [Abstract] | ||||
Capital stock, authorized shares | 1,076,257,500 | 1,076,257,500 | 1,076,257,500 | 1,076,257,500 |
Common stock, Authorized shares | 430,503,000 | 430,503,000 | 430,503,000 | 430,503,000 |
Preferred stock, shares authorized | 645,754,500 | 645,754,500 | 645,754,500 | 645,754,500 |
Common stock, issued and paid | 346,002,862 | 346,002,862 | 346,002,862 | 346,002,862 |
Common stock, par value | € / shares | € 0.20 | € 0.20 | ||
Nominal stock capital | $ 71 | € 69 | $ 68 | € 69 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Transactions from Employee Option and Share Plans (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Total shares in treasury at beginning of year | 3,998,982 | ||
Total cost | $ 342 | ||
Shares acquired under repurchase program | 15,537,868 | ||
Average price in $ per share | $ 82.36 | ||
Amount paid | $ 1,280 | $ 475 | $ 1,435 |
Shares delivered | 8,926,870 | ||
Average price in $ per share | $ 79.25 | ||
Amount received | $ 115 | ||
Total shares in treasury at end of year | 10,609,980 | 3,998,982 | |
Total cost | $ 915 | $ 342 |
Accumulated Other Comprehens129
Accumulated Other Comprehensive Income (Loss), Net of Tax - Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 11,803 | $ 801 |
Balance | 11,156 | 11,803 |
Net Investment Hedge [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (521) | (331) |
Reclassification | 521 | |
Other comprehensive income (loss) before reclassifications | 0 | (190) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 |
Tax effects | 0 | 0 |
Other comprehensive income (loss) | 0 | (190) |
Balance | 0 | (521) |
Currency Translation Differences [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 758 | 627 |
Reclassification | (521) | |
Other comprehensive income (loss) before reclassifications | (124) | 131 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 |
Tax effects | 0 | 0 |
Other comprehensive income (loss) | (124) | 131 |
Balance | 113 | 758 |
Change in Fair Value Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (2) | (2) |
Other comprehensive income (loss) before reclassifications | 0 | (2) |
Amounts reclassified out of accumulated other comprehensive income (loss) | (1) | 2 |
Tax effects | 1 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Balance | (2) | (2) |
Net Actuarial Gain/(Losses) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (54) | (85) |
Other comprehensive income (loss) before reclassifications | (22) | 28 |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 |
Tax effects | (5) | 3 |
Other comprehensive income (loss) | (27) | 31 |
Balance | (81) | (54) |
Unrealized Gains/Losses Available-for Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 0 | 1 |
Other comprehensive income (loss) before reclassifications | 6 | (1) |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 |
Tax effects | (2) | 0 |
Other comprehensive income (loss) | 4 | (1) |
Balance | 4 | 0 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 181 | 210 |
Reclassification | 0 | |
Other comprehensive income (loss) before reclassifications | (140) | (34) |
Amounts reclassified out of accumulated other comprehensive income (loss) | (1) | 2 |
Tax effects | (6) | 3 |
Other comprehensive income (loss) | (147) | (29) |
Balance | $ 34 | $ 181 |
Related-party Transactions - Sc
Related-party Transactions - Schedule of Amounts Related to Revenue and Expenses Incurred in Transactions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |||
Revenue | $ 59 | $ 8 | $ 11 |
Purchase of goods and services | $ 116 | $ 85 | $ 103 |
Related-party Transactions -131
Related-party Transactions - Schedule of Amounts Related to Receivable and Payable Balances with Related Parties (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions [Abstract] | ||
Receivables | $ 13 | $ 24 |
Payables | $ 29 | $ 24 |
Fair Value of Financial Asse132
Fair Value of Financial Assets and Liabilities - Summary of Estimated Fair Value and Carrying Amount of Financial Instruments Measured on a Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Liabilities: | |||
Short-term debt | $ (421) | $ (556) | |
Long-term debt | (8,766) | (8,656) | |
Carrying Amount [Member] | Level III [Member] | |||
Assets: | |||
Notes hedges | [1] | 258 | 241 |
Liabilities: | |||
Notes Embedded Conversion Derivative | [1] | (258) | (241) |
Carrying Amount [Member] | Level II [Member] | |||
Assets: | |||
Other financial assets | 40 | 47 | |
Derivative instruments-assets | 3 | 2 | |
Liabilities: | |||
Short-term debt | (15) | (22) | |
Other long-term debt | (1) | (15) | |
Warrants | (168) | ||
Derivative instruments-liabilities | (6) | (4) | |
Carrying Amount [Member] | Level II [Member] | Notes Payable to Banks [Member] | USD Notes [Member] | |||
Liabilities: | |||
Short-term debt | (406) | (534) | |
Long-term debt | (7,752) | (7,669) | |
Carrying Amount [Member] | Level II [Member] | Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | |||
Liabilities: | |||
Long-term debt | (1,014) | (972) | |
Estimated Fair Value [Member] | Level III [Member] | |||
Assets: | |||
Notes hedges | [1] | 258 | 241 |
Liabilities: | |||
Notes Embedded Conversion Derivative | [1] | (258) | (241) |
Estimated Fair Value [Member] | Level II [Member] | |||
Assets: | |||
Other financial assets | 40 | 47 | |
Derivative instruments-assets | 3 | 2 | |
Liabilities: | |||
Short-term debt | (15) | (22) | |
Other long-term debt | (1) | (15) | |
Warrants | (168) | ||
Derivative instruments-liabilities | (6) | (4) | |
Estimated Fair Value [Member] | Level II [Member] | Notes Payable to Banks [Member] | USD Notes [Member] | |||
Liabilities: | |||
Short-term debt | (406) | (535) | |
Long-term debt | (8,011) | (7,723) | |
Estimated Fair Value [Member] | Level II [Member] | Convertible Debt [Member] | 2019 Cash Convertible Senior Notes [Member] | |||
Liabilities: | |||
Long-term debt | $ (1,310) | $ (1,260) | |
[1] | During the fourth quarter of 2016, the Notes hedges and the Notes Embedded Conversion Derivative were transferred from level 2 to level 3 of the fair value hierarchy. |
Fair Value of Financial Asse133
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2014 | Jan. 01, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash proceeds from the sale of the warrants | $ 134 | ||
Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value assumptions unobservable inputs | 32.00% | ||
Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value assumptions unobservable inputs | 48.00% | ||
Warrant [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Issue of warrants to purchase shares of common stock | 11,180 | ||
Exercise price | $ 133.32 | ||
Warrants expiration date | Mar. 2, 2020 | ||
Warrants expiration extended date | Apr. 30, 2020 | ||
Cash proceeds from the sale of the warrants | $ 134 | ||
Carrying value of warrants | $ 168 | ||
Warrant [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying value of warrants | $ 168 |
Segments and Geographical In134
Segments and Geographical Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016SegmentAreas | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 2 |
Number of application areas | Areas | 8 |
Segments and Geographical In135
Segments and Geographical Information - Segment Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | $ 9,498 | $ 6,101 | $ 5,647 |
Operating income (loss) | (150) | 2,015 | 1,049 | |
HPMS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,086 | 4,720 | 4,208 | |
Operating income (loss) | (302) | 1,885 | 983 | |
SP [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,220 | 1,241 | 1,275 | |
Operating income (loss) | 268 | 264 | 120 | |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [2] | 192 | 140 | 164 |
Operating income (loss) | [2] | $ (116) | $ (134) | $ (54) |
[1] | Revenue attributed to geographic areas is based on the customer's shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). | |||
[2] | Corporate and Other is not a segment under ASC 280 "Segment Reporting". Corporate and Other includes revenue related to Manufacturing Operations, unallocated expenses not related to any specific business segment and corporate restructuring charges. |
Segments and Geographical In136
Segments and Geographical Information - Goodwill Assigned to Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Goodwill [Line Items] | |||
Beginning balance, Cost | $ 9,414 | $ 2,328 | |
Acquisitions | 14 | 7,464 | |
Transfer to asset held for sale | (349) | (179) | |
Ending balance, Cost | 9,029 | 9,414 | |
Accumulated impairment at January 1, 2016 | (186) | (207) | |
Accumulated impairment at December 31, 2016 | (186) | (186) | |
HPMS [Member] | |||
Goodwill [Line Items] | |||
Beginning balance, Cost | 8,769 | ||
Acquisitions | 14 | ||
Transfer to asset held for sale | (6) | ||
Ending balance, Cost | 8,728 | 8,769 | |
Accumulated impairment at January 1, 2016 | (154) | ||
Accumulated impairment at December 31, 2016 | (154) | (154) | |
SP [Member] | |||
Goodwill [Line Items] | |||
Beginning balance, Cost | 373 | ||
Acquisitions | 0 | ||
Transfer to asset held for sale | (343) | ||
Ending balance, Cost | 32 | 373 | |
Accumulated impairment at January 1, 2016 | (32) | ||
Accumulated impairment at December 31, 2016 | (32) | (32) | |
Corporate and Other [Member] | |||
Goodwill [Line Items] | |||
Beginning balance, Cost | [1] | 272 | |
Acquisitions | [1] | 0 | |
Transfer to asset held for sale | [1] | 0 | |
Ending balance, Cost | [1] | 269 | $ 272 |
Cost [Member] | |||
Goodwill [Line Items] | |||
Translation differences and other changes | (50) | ||
Cost [Member] | HPMS [Member] | |||
Goodwill [Line Items] | |||
Translation differences and other changes | (49) | ||
Cost [Member] | SP [Member] | |||
Goodwill [Line Items] | |||
Translation differences and other changes | 2 | ||
Cost [Member] | Corporate and Other [Member] | |||
Goodwill [Line Items] | |||
Translation differences and other changes | [1] | $ (3) | |
[1] | Corporate and Other is not a segment under ASC 280 "Segment Reporting". |
Segments and Geographical In137
Segments and Geographical Information - Geographical Segment Report (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | $ 9,498 | $ 6,101 | $ 5,647 |
Property, plant and equipment | 2,352 | 2,922 | 1,123 | |
China [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 3,882 | 3,135 | 2,756 |
Property, plant and equipment | 251 | 360 | 116 | |
Netherlands [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 285 | 177 | 171 |
Property, plant and equipment | 183 | 161 | 169 | |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 906 | 415 | 396 |
Property, plant and equipment | 922 | 1,115 | 5 | |
Singapore [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 984 | 526 | 452 |
Property, plant and equipment | 166 | 186 | 200 | |
Germany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 623 | 392 | 450 |
Property, plant and equipment | 52 | 98 | 80 | |
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 550 | 316 | 245 |
Property, plant and equipment | 1 | 2 | 1 | |
South Korea [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 369 | 268 | 287 |
Property, plant and equipment | 1 | 1 | ||
Malaysia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 231 | 41 | 47 |
Property, plant and equipment | 378 | 473 | 79 | |
Other Countries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 1,668 | 831 | 843 |
Property, plant and equipment | $ 399 | $ 526 | $ 472 | |
[1] | Revenue attributed to geographic areas is based on the customer's shipped-to location (except for intellectual property license revenue which is attributable to the Netherlands). |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Feb. 07, 2017 | Dec. 31, 2016 | Aug. 01, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||
Principal amount of debt | $ 9,361,000,000 | $ 9,343,000,000 | ||
2021 Additional Senior Unsecured Notes [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal amount of debt | $ 500,000,000 | |||
Fixed rate on notes | 4.125% | |||
Subsequent Event [Member] | Term Loan E [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal amount of debt | $ 388,000,000 | |||
Debt instrument maturity period | 2017-03 | |||
Subsequent Event [Member] | Term Loan D [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal amount of debt | $ 387,000,000 | |||
Debt instrument maturity period | 2020-01 | |||
Subsequent Event [Member] | Term Loan F [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal amount of debt | $ 1,436,000,000 | |||
Debt instrument maturity period | 2020-12 | |||
Subsequent Event [Member] | 2021 Additional Senior Unsecured Notes [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal amount of debt | $ 500,000,000 | |||
Fixed rate on notes | 5.75% |