v3.10.0.1
Segments and Geographical Information
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segments and Geographical Information

22 Segments and Geographical Information

Prior to February 6, 2017, NXP was organized into two market oriented reportable segments, High Performance Mixed Signal (“HPMS”) and Standard Products (“SP”). As of February 6, 2017, the SP reportable segment was divested and HPMS remains as the sole reportable segment. Corporate and Other represents the remaining portion to reconcile to the Consolidated Financial Statements. Effective January 1, 2019, NXP removed the reference to HPMS in its organizational structure in acknowledgment of the one reportable segment representing the entity as a whole.

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, and software solutions for mobile phones. Our SP business segment offered 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. The segments each include revenue from the sale and licensing of intellectual property related to that segment.

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 prior to February 6, 2017, 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 2018, 2017 and 2016 is presented in the following tables.

 

Revenue

 

2018

 

 

2017

 

 

2016

 

HPMS

 

 

9,022

 

 

 

8,745

 

 

 

8,086

 

SP

 

 

-

 

 

 

118

 

 

 

1,220

 

Corporate and Other (1)

 

 

385

 

 

 

393

 

 

 

192

 

 

 

 

9,407

 

 

 

9,256

 

 

 

9,498

 

 

Operating income (loss)

 

2018

 

 

2017

 

 

2016

 

HPMS

 

 

807

 

 

 

656

 

 

 

(302

)

SP

 

 

-

 

 

 

31

 

 

 

268

 

Corporate and Other (1)

 

 

1,903

 

 

 

1,415

 

 

 

(116

)

 

 

 

2,710

 

 

 

2,102

 

 

 

(150

)

 

(1)

Corporate and Other is not a reporting 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. The gain on the sale of the divestment of SP business is included in the operating income of Corporate and Other.

 

Goodwill assigned to segments

 

Cost at

January 1,

2018

 

 

Acquisitions

 

 

Translation

differences and

other changes

 

 

Cost at

December 31,

2018

 

HPMS

 

 

8,750

 

 

 

11

 

 

 

(60

)

 

 

8,701

 

Corporate and Other (1)

 

 

270

 

 

 

-

 

 

 

-

 

 

 

270

 

 

 

 

9,020

 

 

 

11

 

 

 

(60

)

 

 

8,971

 

 

 

 

Accumulated

impairment at

January 1, 2018

 

 

Translation

differences and

other changes

 

 

Accumulated

impairment at

December 31, 2018

 

HPMS

 

 

(154

)

 

 

40

 

 

 

(114

)

Corporate and Other (1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

(154

)

 

 

40

 

 

 

(114

)

 

(1)

Corporate and Other is not a reporting segment under ASC 280 “Segment Reporting”.

Geographical Information

 

 

 

Revenue (1)

 

 

Property, plant and equipment, net

 

 

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

China

 

 

3,430

 

 

 

3,640

 

 

 

3,882

 

 

 

287

 

 

 

281

 

 

 

251

 

Netherlands

 

 

349

 

 

 

304

 

 

 

285

 

 

 

214

 

 

 

198

 

 

 

183

 

United States

 

 

919

 

 

 

922

 

 

 

906

 

 

 

782

 

 

 

770

 

 

 

922

 

Singapore

 

 

1,220

 

 

 

1,082

 

 

 

984

 

 

 

298

 

 

 

211

 

 

 

166

 

Germany

 

 

531

 

 

 

570

 

 

 

623

 

 

 

55

 

 

 

57

 

 

 

52

 

Japan

 

 

735

 

 

 

750

 

 

 

550

 

 

 

-

 

 

 

-

 

 

 

1

 

South Korea

 

 

357

 

 

 

356

 

 

 

369

 

 

 

-

 

 

 

-

 

 

 

-

 

Malaysia

 

 

112

 

 

 

103

 

 

 

231

 

 

 

373

 

 

 

369

 

 

 

378

 

Other countries

 

 

1,754

 

 

 

1,529

 

 

 

1,668

 

 

 

427

 

 

 

409

 

 

 

399

 

 

 

 

9,407

 

 

 

9,256

 

 

 

9,498

 

 

 

2,436

 

 

 

2,295

 

 

 

2,352

 

 

(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).