v3.20.4
Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Summary of PME Multi-Employer Plan
PME multi-employer plan202020192018
NXP’s contributions to the plan33 31 34 
(including employees’ contributions)4 4 4 
Average number of NXP’s active employees participating in the plan2,048 2,129 2,183 
NXP’s contribution to the plan exceeded more than 5 percent of the total contribution (as of December 31 of the plan’s year end)NoNoNo
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 2020 and 2019, associated with the Company’s dedicated plans, and a reconciliation of the funded status of these plans to the amounts recognized in the Consolidated Balance Sheets.
20202019
Projected benefit obligation
Projected benefit obligation at beginning of year665 617 
Service cost17 14 
Interest cost7 12 
Actuarial (gains) and losses65 50 
Curtailments and settlements— — 
Benefits paid(22)(23)
Exchange rate differences58 (5)
Projected benefit obligation at end of year790 665 
Plan assets
Fair value of plan assets at beginning of year203 201 
Actual return on plan assets5 5 
Employer contributions22 22 
Curtailments and settlements— — 
Benefits paid(22)(23)
Exchange rate differences16 (2)
Fair value of plan assets at end of year224 203 
Funded status(566)(462)
Classification of the funded status is as follows
–   Accrued pension cost within other non-current liabilities(554)(452)
–   Accrued pension cost within accrued liabilities(12)(10)
Total(566)(462)
Accumulated benefit obligation
Accumulated benefit obligation for all Company-dedicated benefit pension plans755 621 
Plans with assets less than accumulated benefit obligation (including unfunded plans)
–   Fair value of plan assets220 198 
–   Accumulated benefit obligations750 617 
Amounts recognized in accumulated other comprehensive income (before tax)
Total AOCI at beginning of year140 94 
–   Net actuarial loss (gain)58 47 
–   Exchange rate differences16 (1)
Total AOCI at end of year214 140 
Summary of Weighted Average Assumptions Used to Calculate Projected Benefit Obligations and Net Periodic Pension Cost
The weighted average assumptions used to calculate the projected benefit obligations were as follows:
20202019
Discount rate0.8 %1.2 %
Rate of compensation increase1.6 %1.5 %
The weighted average assumptions used to calculate the net periodic pension cost were as follows:
202020192018
Discount rate1.2 %2.0 %1.9 %
Expected returns on plan assets2.6 %2.7 %3.0 %
Rate of compensation increase1.5 %1.8 %1.8 %
Components of Net Periodic Pension Costs
The components of net periodic pension costs were as follows:
202020192018
Service cost17 14 16 
Interest cost on the projected benefit obligation7 12 12 
Expected return on plan assets(5)(6)(6)
Amortization of net (gain) loss8 4 4 
Curtailments & settlements— — — 
Net periodic cost27 24 26 
Summary of Actual Pension Plan Assets Allocation and Classification
The actual pension plan asset allocation at December 31, 2020 and 2019 is as follows:
20202019
Asset category:
Equity securities34 %31 %
Debt securities39 %43 %
Insurance contracts7 %7 %
Other20 %19 %
100 %100 %
The following table summarizes the classification of these assets.
20202019
Level ILevel IILevel IIILevel ILevel IILevel III
Equity securities— 71 — — 59 — 
Debt securities8 62 — 11 62 — 
Insurance contracts— 15 — — 14 — 
Other— 21 18 2 18 14 
8 169 18 13 153 14 
Summary of Estimated Future Pension Benefit Payments
The following benefit payments are expected to be made (including those for funded plans):
202124 
202224 
202326 
202428 
202528 
Years 2026-2030170