Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

NXP Semiconductors N.V., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
IPR&D	96)	147)	272)	276)	687)
Marketing-related	81)	81)	81)	81)	82)
Customer-related	852)	957)	968)	964)	1,155)
Technology-based	3,686)	8,064)	8,063)	7,862)	7,411)
Identified intangible assets, cost	4,715)	9,249)	9,384)	9,183)	9,335)
Accumulated amortization	(3,021)	(7,007)	(5,764)	(4,716)	(3,472)
Identified intangible assets, book value	1,694)	2,242)	3,620)	4,467)	5,863)
Goodwill	9,961)	9,984)	9,949)	8,857)	8,866)
Identified intangible assets and goodwill	11,655)	12,226)	13,569)	13,324)	14,729)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

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Item	Description	The company
Identified intangible assets, book value	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	NXP Semiconductors N.V. identified intangible assets, book value decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	NXP Semiconductors N.V. goodwill increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Identified intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	NXP Semiconductors N.V. identified intangible assets and goodwill decreased from 2019 to 2020 and from 2020 to 2021.

NXP Semiconductors N.V., adjustments to financial statements

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	20,864)	19,847)	20,016)	21,530)	24,049)
Less: Goodwill	9,961)	9,984)	9,949)	8,857)	8,866)
Total assets (adjusted)	10,903)	9,863)	10,067)	12,673)	15,183)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	6,528)	8,944)	9,441)	10,505)	13,527)
Less: Goodwill	9,961)	9,984)	9,949)	8,857)	8,866)
Stockholders’ equity (adjusted)	(3,433)	(1,040)	(508)	1,648)	4,661)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

NXP Semiconductors N.V., Financial Data: Reported vs. Adjusted

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NXP Semiconductors N.V., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Total Asset Turnover
Reported total asset turnover	0.53	0.43	0.44	0.44	0.38
Adjusted total asset turnover	1.01	0.87	0.88	0.74	0.61
Financial Leverage
Reported financial leverage	3.20	2.22	2.12	2.05	1.78
Adjusted financial leverage	—	—	—	7.69	3.26
Return on Equity (ROE)
Reported ROE	28.66%	0.58%	2.57%	21.02%	16.37%
Adjusted ROE	—	—	—	133.98%	47.52%
Return on Assets (ROA)
Reported ROA	8.97%	0.26%	1.21%	10.26%	9.21%
Adjusted ROA	17.16%	0.53%	2.41%	17.42%	14.59%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	NXP Semiconductors N.V. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	NXP Semiconductors N.V. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

NXP Semiconductors N.V., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenue	11,063)	8,612)	8,877)	9,407)	9,256)
Total assets	20,864)	19,847)	20,016)	21,530)	24,049)
Activity Ratio
Total asset turnover¹	0.53	0.43	0.44	0.44	0.38
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	11,063)	8,612)	8,877)	9,407)	9,256)
Adjusted total assets	10,903)	9,863)	10,067)	12,673)	15,183)
Activity Ratio
Adjusted total asset turnover²	1.01	0.87	0.88	0.74	0.61

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 11,063 ÷ 20,864 = 0.53

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 11,063 ÷ 10,903 = 1.01

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	NXP Semiconductors N.V. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets	20,864)	19,847)	20,016)	21,530)	24,049)
Stockholders’ equity	6,528)	8,944)	9,441)	10,505)	13,527)
Solvency Ratio
Financial leverage¹	3.20	2.22	2.12	2.05	1.78
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	10,903)	9,863)	10,067)	12,673)	15,183)
Adjusted stockholders’ equity	(3,433)	(1,040)	(508)	1,648)	4,661)
Solvency Ratio
Adjusted financial leverage²	—	—	—	7.69	3.26

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 20,864 ÷ 6,528 = 3.20

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 10,903 ÷ -3,433 = —

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to stockholders	1,871)	52)	243)	2,208)	2,215)
Stockholders’ equity	6,528)	8,944)	9,441)	10,505)	13,527)
Profitability Ratio
ROE¹	28.66%	0.58%	2.57%	21.02%	16.37%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to stockholders	1,871)	52)	243)	2,208)	2,215)
Adjusted stockholders’ equity	(3,433)	(1,040)	(508)	1,648)	4,661)
Profitability Ratio
Adjusted ROE²	—	—	—	133.98%	47.52%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income attributable to stockholders ÷ Stockholders’ equity
= 100 × 1,871 ÷ 6,528 = 28.66%

² Adjusted ROE = 100 × Net income attributable to stockholders ÷ Adjusted stockholders’ equity
= 100 × 1,871 ÷ -3,433 = —

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to stockholders	1,871)	52)	243)	2,208)	2,215)
Total assets	20,864)	19,847)	20,016)	21,530)	24,049)
Profitability Ratio
ROA¹	8.97%	0.26%	1.21%	10.26%	9.21%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to stockholders	1,871)	52)	243)	2,208)	2,215)
Adjusted total assets	10,903)	9,863)	10,067)	12,673)	15,183)
Profitability Ratio
Adjusted ROA²	17.16%	0.53%	2.41%	17.42%	14.59%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income attributable to stockholders ÷ Total assets
= 100 × 1,871 ÷ 20,864 = 8.97%

² Adjusted ROA = 100 × Net income attributable to stockholders ÷ Adjusted total assets
= 100 × 1,871 ÷ 10,903 = 17.16%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	NXP Semiconductors N.V. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

NXP Semiconductors N.V. (NASDAQ:NXPI)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

NXP Semiconductors N.V., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

NXP Semiconductors N.V., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)