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Supplemental Financial Information
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information Supplemental Financial Information
Statement of Operations Information:

Disaggregation of revenue

The following table presents revenue disaggregated by sales channel:
For the three months ended
March 31, 2024April 2, 2023
Distributors1,739 1,491 
Original Equipment Manufacturers and Electronic Manufacturing Services1,355 1,594 
Other
32 36 
Total Revenue3,126 3,121 

Depreciation, amortization and impairment

For the three months ended
March 31, 2024April 2, 2023
Depreciation of property, plant and equipment145 160 
Amortization of internal use software7 4 
Amortization of other identified intangible assets83 119 
Total - Depreciation, amortization and impairment235 283 

Effective January 2024, we increased the estimated useful lives of certain manufacturing equipment from 5 to 10 years. This change has resulted in an insignificant increase in gross margin in the first quarter of 2024 when compared to what would have been the impact using the estimated useful life in place prior to this change.


Financial income and expense

For the three months ended
March 31, 2024April 2, 2023
Interest income50 42 
Interest expense(105)(111)
Total other financial income/ (expense)(15)(13)
Total(70)(82)
Earnings per share

The computation of earnings per share (EPS) is presented in the following table:
For the three months ended
March 31, 2024April 2, 2023
Net income (loss)644 623 
Less: net income (loss) attributable to non-controlling interests5 8 
Net income (loss) attributable to stockholders639 615 
Weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)256,567 259,576 
Plus incremental shares from assumed conversion of:
Options 1)
172 206 
Restricted Share Units, Performance Share Units and Equity Rights 2)
2,215 1,428 
Dilutive potential common shares2,387 1,634 
Adjusted weighted average number of shares outstanding (after deduction of treasury shares) during the year (in thousands)258,954 261,210 
EPS attributable to stockholders in $:
Basic net income (loss)2.49 2.37 
Diluted net income (loss)2.47 2.35 
1)    There were no stock options to purchase shares of NXP’s common stock that were outstanding in Q1 2024 (Q1 2023: 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 2024 (Q1 2023: 0.3 million 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 31, 2024 and December 31, 2023, our cash balance was $2,908 million and $3,862 million, respectively, of which $222 million and $214 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 2024 and 2023, no dividends were declared by SSMC.

Inventories

Inventories are summarized as follows:
March 31, 2024December 31, 2023
Raw materials104 113 
Work in process1,580 1,633 
Finished goods418 388 
2,102 2,134 
The amounts recorded above are net of allowance for obsolescence of $198 million as of March 31, 2024 (December 31, 2023: $189 million).
Equity Investments

At March 31, 2024 and December 31, 2023, the total carrying value of investments in equity securities is summarized as follows:
March 31, 2024December 31, 2023
Marketable equity securities9 12 
Non-marketable equity securities66 55 
Equity-accounted investments120 101 
195 168 

The total carrying value of investments in equity-accounted investees is summarized as follows:
March 31, 2024December 31, 2023
Shareholding %AmountShareholding %Amount
SMART Growth Fund, L.P.8.41 %42 8.41 %42 
SigmaSense, LLC10.64 %32 10.64 %33 
Others— 46 — 26 
120 101 

Results related to equity-accounted investees at the end of each period were as follows:
For the three months ended
March 31, 2024April 2, 2023
Company's share in income (loss)(2)(2)
Other results1 — 
(1)(2)

Other current liabilities

Other current liabilities at March 31, 2024 and December 31, 2023 consisted of the following:
March 31, 2024December 31, 2023
Accrued compensation and benefits502 500 
Customer programs339 280 
Income taxes payable168 170 
Dividend payable260 261 
Other637 644 
1,906 1,855 
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, 2023177 1 (88)90 
Other comprehensive income (loss) before
   reclassifications		(38)(15)— (53)
Amounts reclassified out of accumulated other
   comprehensive income (loss)		— 4 — 4 
Tax effects— 3 — 3 
Other comprehensive income (loss)(38)(8)— (46)
As of March 31, 2024139 (7)(88)44 

Cash dividends

The following dividends were declared during the first quarters of 2024 and 2023 under NXP’s quarterly dividend program:

Fiscal year 2024Fiscal year 2023
Dividend per shareAmountDividend per shareAmount
First quarter1.014 260 1.014 263 
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 31, 2024 and was subsequently paid on April 10, 2024.