Supplemental Financial Information

3 Months Ended

Mar. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Statement of Operations Information:

Disaggregation of revenue

The following table presents revenue disaggregated by sales channel:


	For the three months ended
		March 30, 2025	March 31, 2024
Distributors		1,524	1,739
Original Equipment Manufacturers and Electronic Manufacturing Services		1,284	1,355
Other		27	32
Total Revenue		2,835	3,126

Depreciation, amortization and impairment


	For the three months ended
		March 30, 2025	March 31, 2024
Depreciation of property, plant and equipment		143	145
Amortization of internal use software		8	7
Amortization of other identified intangible assets		58	83
Total - Depreciation, amortization and impairment		209	235

Financial income and expense


	For the three months ended
		March 30, 2025	March 31, 2024
Interest income		35	50
Interest expense		(106)	(105)




Total other financial income/ (expense)		(21)	(15)
Total		(92)	(70)

Earnings per share

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


	For the three months ended
		March 30, 2025	March 31, 2024
Net income (loss)		497	644
Less: net income (loss) attributable to non-controlling interests		7	5
Net income (loss) attributable to stockholders		490	639

Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)		253,709	256,567
Plus incremental shares from assumed conversion of:
Options 1)		94	172
Restricted Share Units, Performance Share Units and Equity Rights 2)		1,215	2,215
Dilutive potential common shares		1,309	2,387

Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)		255,018	258,954

EPS attributable to stockholders in $:
Basic net income (loss)		1.93	2.49
Diluted net income (loss)		1.92	2.47

1) There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q1 2025 (Q1 2024: no shares) that 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 were greater than the weighted average number of shares underlying outstanding stock options.

2) There were no unvested RSUs, PSUs and equity rights that were outstanding in Q1 2025 (Q1 2024: no shares) that 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 were greater than the weighted average number of outstanding unvested RSUs, PSUs and equity rights or the performance goal has not been met yet.

Balance Sheet Information

Cash and cash equivalents

At March 30, 2025 and December 31, 2024, our cash balance was $3,988 million and $3,292 million, respectively, of which $275 million and $261 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 both first three months of 2025 and 2024, no dividends were declared by SSMC.

Inventories

Inventories are summarized as follows:


	March 30, 2025	December 31, 2024
Raw materials	102	109
Work in process	1,638	1,576
Finished goods	610	671
	2,350	2,356

The amounts recorded above are net of allowance for obsolescence of $131 million as of March 30, 2025 (December 31, 2024: $150 million).

Equity Investments

At March 30, 2025 and December 31, 2024, the total carrying value of investments in equity securities is summarized as follows:


	March 30, 2025	December 31, 2024
Marketable equity securities	—	1
Non-marketable equity securities	76	71
Equity-accounted investments	336	300
	412	372

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


	March 30, 2025			December 31, 2024
	Shareholding %		Amount	Shareholding %		Amount
VisionPower Semiconductor Manufacturing Company Pte. Ltd. (VSMC)	40.00	%	154	40.00	%	134
European Semiconductor Manufacturing Company (ESMC) GmbH 1)	10.00	%	95	10.00	%	77
SMART Growth Fund, L.P.	8.41	%	37	8.41	%	39
SigmaSense, LLC	9.40	%	27	10.64	%	28
Others	—		23	—		22
			336			300
1) NXP accounts for its investment in ESMC under the equity method due to our ability to exercise significant influence over ESMC’s operations, primarily through representation on ESMC’s board of directors and other operational arrangements.

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


	For the three months ended
		March 30, 2025	March 31, 2024
Company's share in income (loss)		(4)	(2)
Other results		—	1
		(4)	(1)

Other current liabilities

Other current liabilities at March 30, 2025 and December 31, 2024 consisted of the following:


	March 30, 2025	December 31, 2024
Accrued compensation and benefits	354	371
Customer programs	139	131
Income taxes payable	157	114
Dividend payable	257	258
Other	505	560
	1,412	1,434

Accumulated other comprehensive income (loss)

Total comprehensive income (loss) represents net income (loss) plus the results of certain equity changes not reflected in the Condensed Consolidated Statements of Operations. The after-tax components of accumulated other comprehensive income (loss) and their corresponding changes are shown below:


	Currency translation differences	Change in fair value cash flow hedges	Net actuarial gain/(losses)	Accumulated Other Comprehensive Income (loss)
As of December 31, 2024	66	(5)	(78)	(17)
Other comprehensive income (loss) before reclassifications	43	3	—	46
Amounts reclassified out of accumulated other comprehensive income (loss)	—	1	—	1
Tax effects	—	(1)	—	(1)
Other comprehensive income (loss)	43	3	—	46
As of March 30, 2025	109	(2)	(78)	29

Cash dividends

The following dividends were declared during the first three months of 2025 and 2024 under NXP’s quarterly dividend program:

Fiscal Year 2025

Fiscal Year 2024

Dividend per share

Amount

Dividend per share

Amount

First quarter

1.014

257

1.014

260

The dividend declared in the first quarter (not yet paid) is classified in the Condensed Consolidated Balance Sheet in other current liabilities as of March 30, 2025 and was subsequently paid on April 9, 2025.