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Segments and Geographical Information | 12 Months Ended
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Dec. 31, 2012
Segments and Geographical Information | 19 Segments and Geographical Information NXP is organized into three reportable segments including two market-oriented business segments, High Performance Mixed Signal (“HPMS”) and Standard Products (“SP”) and one other reportable segment, Manufacturing Operations. Corporate and Other represents the remaining portion to reconcile to the Consolidated Financial Statements along with the Divested Home activities, which were divested in 2010. Our Chief Executive Officer, who is our Chief Operating Decision Maker, or 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. Unallocated items comprise mainly corporate assets, head office expenses and deferred income tax assets and liabilities. Our HPMS business segment delivers High Performance Mixed Signal solutions to our customers to satisfy their system and sub-systems needs across eight application areas: automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting and industrial. Our SP business segment offers standard products for use across many application markets, as well as application-specific standard products predominantly used in application areas such as mobile handsets, computing, consumer and automotive. Our manufacturing operations are conducted through a combination of wholly owned manufacturing facilities, manufacturing facilities operated jointly with other semiconductor companies and third-party foundries and assembly and test subcontractors, which together form our Manufacturing Operations segment. While the main function of our Manufacturing Operations segment is to supply products to our HPMS and SP segments, revenue and costs in this segment are to a large extent derived from revenue of wafer foundry and packaging services to our divested businesses in order to support their separation and, on a limited basis, their ongoing operations. As these divested businesses develop or acquire their own foundry and packaging capabilities, our revenue from these sources is declining. Corporate and Other includes unallocated research expenses not related to any specific business segment, corporate restructuring charges and other expenses, as well as operations not included in our two business segments, such as manufacturing, marketing and selling of can tuners through our joint venture NuTune Singapore Pte. Ltd. (“NuTune”), which was sold on December 14, 2010, and software solutions for mobile phones “NXP Software” business. Revenue recorded in Corporate and Other is primarily generated by the NXP Software business. On February 8, 2010, our wholly-owned subsidiary, NXP B.V., divested a major portion of our former Home segment to Trident Microsystems, Inc. (“Trident”). For the periods up to divestment on February 8, 2010, the results of the divested operations are presented in our consolidated accounts separately under “Divested Home Activities”. The continuing business of the former Home segment not divested has been regrouped into High Performance Mixed Signal and Corporate and Other. All previous periods have been restated accordingly. Detailed information by segment for the years 2012, 2011 and 2010 is presented in the following tables.
Segments |  | Revenue |  |  | Research and development |  |  | Operating income (loss) |  |  | Operating income (loss) as a % of revenue |  |  | Results relating to equity-accounted investees |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HPMS |  |  | 3,282 |  |  |  | 539 |  |  |  | 527 |  |  |  | 16.1 |  |  |  | — |
SP |  |  | 832 |  |  |  | 43 |  |  |  | 37 |  |  |  | 4.4 |  |  |  | — |
Manufacturing Operations |  |  | 211 |  |  |  | 1 |  |  |  | (36 | ) |  |  | (17.1 | ) |  |  | — |
Corporate and Other (1) |  |  | 33 |  |  |  | 45 |  |  |  | (116 | ) |  |  | N.M. |  |  |  | (27 | )
|  |  | 4,358 |  |  |  | 628 |  |  |  | 412 |  |  |  | 9.5 |  |  |  | (27 | )
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HPMS |  |  | 2,906 |  |  |  | 554 |  |  |  | 339 |  |  |  | 11.7 |  |  |  | — |
SP |  |  | 925 |  |  |  | 37 |  |  |  | 141 |  |  |  | 15.2 |  |  |  | — |
Manufacturing Operations |  |  | 316 |  |  |  | — |  |  |  | (60 | ) |  |  | (19.0 | ) |  |  | — |
Corporate and Other (1) |  |  | 47 |  |  |  | 44 |  |  |  | (63 | ) |  |  | N.M. |  |  |  | (77 | )
|  |  | 4,194 |  |  |  | 635 |  |  |  | 357 |  |  |  | 8.5 |  |  |  | (77 | )
2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HPMS |  |  | 2,846 |  |  |  | 454 |  |  |  | 387 |  |  |  | 13.6 |  |  |  | — |
SP |  |  | 848 |  |  |  | 32 |  |  |  | 91 |  |  |  | 10.7 |  |  |  | — |
Manufacturing Operations |  |  | 525 |  |  |  | 18 |  |  |  | (57 | ) |  |  | (10.9 | ) |  |  | — |
Corporate and Other (1) |  |  | 136 |  |  |  | 48 |  |  |  | (117 | ) |  |  | N.M. |  |  |  | (86 | )
Divested Home activities |  |  | 47 |  |  |  | 16 |  |  |  | (31 | ) |  |  | (66.0 | ) |  |  | — |
|  |  | 4,402 |  |  |  | 568 |  |  |  | 273 |  |  |  | 6.2 |  |  |  | (86 | )
(1) | Corporate and Other is not a segment under ASC 280 “Segment Reporting”.
N.M. Not meaningful Certain assets of the Company have been 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 by segment has been omitted. Instead, inventories by segment are included.
Segments |  | Inventories |  |  | Long-lived assets 1) |  |  | Total liabilities excl. debt |  |  | Gross capital expenditures property, plant and equipment |  |  | Depreciation property, plant and equipment (2) |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HPMS |  |  | 388 |  |  |  | 2,248 |  |  |  | 300 |  |  |  | 12 |  |  |  | 12 |
SP |  |  | 182 |  |  |  | 706 |  |  |  | 102 |  |  |  | 11 |  |  |  | 26 |
Manufacturing Operations |  |  | 145 |  |  |  | 1,041 |  |  |  | 666 |  |  |  | 200 |  |  |  | 163 |
Corporate and Other (3) |  |  | — |  |  |  | 317 |  |  |  | 595 |  |  |  | 28 |  |  |  | 46 |
|  |  | 715 |  |  |  | 4,312 |  |  |  | 1,663 |  |  |  | 251 |  |  |  | 247 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HPMS |  |  | 340 |  |  |  | 2,390 |  |  |  | 258 |  |  |  | 14 |  |  |  | 13 |
SP |  |  | 161 |  |  |  | 760 |  |  |  | 152 |  |  |  | 17 |  |  |  | 41 |
Manufacturing Operations |  |  | 117 |  |  |  | 1,014 |  |  |  | 489 |  |  |  | 162 |  |  |  | 179 |
Corporate and Other (3) |  |  | — |  |  |  | 301 |  |  |  | 557 |  |  |  | 28 |  |  |  | 57 |
|  |  | 618 |  |  |  | 4,465 |  |  |  | 1,456 |  |  |  | 221 |  |  |  | 290 |
2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HPMS |  |  | 240 |  |  |  | 2,670 |  |  |  | 313 |  |  |  | 15 |  |  |  | 13 |
SP |  |  | 136 |  |  |  | 828 |  |  |  | 127 |  |  |  | 15 |  |  |  | 35 |
Manufacturing Operations |  |  | 137 |  |  |  | 1,055 |  |  |  | 748 |  |  |  | 209 |  |  |  | 220 |
Corporate and Other (3) |  |  | — |  |  |  | 396 |  |  |  | 599 |  |  |  | 19 |  |  |  | 91 |
Divested Home activities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 513 |  |  |  | 4,949 |  |  |  | 1,787 |  |  |  | 258 |  |  |  | 359 |
Discontinued operations |  |  |  |  |  |  |  |  |  |  | 80 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 1,867 |  |  |  |  |  |  |  |  |
(1) | Long-lived assets include property, plant and equipment, goodwill and identified intangible fixed assets.
(2) | Excluding additional write down of property classified as held for sale (2010: $30 million).
(3) | Corporate and Other is not a segment under ASC 280 “Segment Reporting”.
Goodwill assigned to segments |  | Cost at January 1, 2012 |  |  | Acquisitions |  |  | Divestments |  |  | Translation differences and other changes |  |  | Cost at December 31, 2012 |
HPMS |  |  | 1,785 |  |  |  | 11 |  |  |  | (7 | ) |  |  | 32 |  |  |  | 1,821 |
SP |  |  | 305 |  |  |  | — |  |  |  | — |  |  |  | 6 |  |  |  | 311 |
Manufacturing Operations |  |  | 316 |  |  |  | — |  |  |  |  |  |  |  | 5 |  |  |  | 321 |
Corporate and Other (1) |  |  | 48 |  |  |  | — |  |  |  | (1 | ) |  |  | 2 |  |  |  | 49 |
|  |  | 2,454 |  |  |  | 11 |  |  |  | (8 | ) |  |  | 45 |  |  |  | 2,502 |
|  | Accumulated impairment at January 1, 2012 |  |  | Divestments |  |  | Impairment |  |  | Translation differences and other changes |  |  | Accumulated impairment at December 31, 2012 |
HPMS |  |  | (175 | ) |  |  | 2 |  |  |  | — |  |  |  | (3 | ) |  |  | (176 | )
SP |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Manufacturing Operations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate and Other (1) |  |  | (48 | ) |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | (49 | )
|  |  | (223 | ) |  |  | 2 |  |  |  | — |  |  |  | (4 | ) |  |  | (225 | )
(1) | Corporate and Other is not a segment under ASC 280 “Segment Reporting”.
Geographical Information
Main countries |  | Total revenue |  |  | Property, plant and equipment |  |  | Gross capital expenditures property, plant and equipment |  |  | Depreciation property, plant and equipment |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
China |  |  | 1,699 |  |  |  | 131 |  |  |  | 43 |  |  |  | 31 |
Netherlands |  |  | 94 |  |  |  | 180 |  |  |  | 22 |  |  |  | 43 |
Taiwan |  |  | 112 |  |  |  | 80 |  |  |  | 32 |  |  |  | 23 |
United States |  |  | 303 |  |  |  | 8 |  |  |  | 2 |  |  |  | 3 |
Singapore |  |  | 436 |  |  |  | 226 |  |  |  | 58 |  |  |  | 47 |
Germany |  |  | 447 |  |  |  | 88 |  |  |  | 17 |  |  |  | 26 |
South Korea |  |  | 238 |  |  |  | — |  |  |  | — |  |  |  | — |
Other countries |  |  | 1,029 |  |  |  | 357 |  |  |  | 77 |  |  |  | 74 |
|  |  | 4,358 |  |  |  | 1,070 |  |  |  | 251 |  |  |  | 247 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
China |  |  | 1,514 |  |  |  | 120 |  |  |  | 40 |  |  |  | 32 |
Netherlands |  |  | 123 |  |  |  | 187 |  |  |  | 23 |  |  |  | 60 |
Taiwan |  |  | 80 |  |  |  | 70 |  |  |  | 18 |  |  |  | 25 |
United States |  |  | 329 |  |  |  | 9 |  |  |  | 2 |  |  |  | 3 |
Singapore |  |  | 383 |  |  |  | 229 |  |  |  | 64 |  |  |  | 45 |
Germany |  |  | 508 |  |  |  | 96 |  |  |  | 17 |  |  |  | 41 |
South Korea |  |  | 216 |  |  |  | — |  |  |  | — |  |  |  | — |
Other countries |  |  | 1,041 |  |  |  | 352 |  |  |  | 57 |  |  |  | 84 |
|  |  | 4,194 |  |  |  | 1,063 |  |  |  | 221 |  |  |  | 290 |
2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
China |  |  | 1,496 |  |  |  | 112 |  |  |  | 33 |  |  |  | 31 |
Netherlands |  |  | 126 |  |  |  | 232 |  |  |  | 12 |  |  |  | 98 |
Taiwan |  |  | 115 |  |  |  | 81 |  |  |  | 29 |  |  |  | 25 |
United States |  |  | 337 |  |  |  | 34 |  |  |  | 4 |  |  |  | 6 |
Singapore |  |  | 480 |  |  |  | 210 |  |  |  | 62 |  |  |  | 53 |
Germany |  |  | 434 |  |  |  | 109 |  |  |  | 19 |  |  |  | 30 |
South Korea |  |  | 202 |  |  |  | — |  |  |  | — |  |  |  | — |
Other countries |  |  | 1,212 |  |  |  | 386 |  |  |  | 99 |  |  |  | 116 |
|  |  | 4,402 |  |  |  | 1,164 |  |  |  | 258 |  |  |  | 359 |
Concentration of risk A substantial portion of our revenue is derived from our top OEM customers, some of whom are supplied through distributors, in the automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing markets. No end customer accounted for greater than 10% of the Company‘s revenues for the years presented. However, sales to one of our distributors, WPG, in 2012, 2011 and 2010 represented 12%, 12% and 11%, respectively, of revenue. Furthermore, 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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