Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

NXP Semiconductors N.V., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Netherlands	106)	147)	90)	296)	179)
Foreign	186)	119)	105)	91)	135)
Current taxes	292)	266)	195)	387)	314)
Netherlands	(10)	(58)	28)	(2)	259)
Foreign	(10)	(291)	(203)	(209)	(1,056)
Deferred taxes	(20)	(349)	(175)	(211)	(797)
Income tax expense (benefit)	272)	(83)	20)	176)	(483)

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
Current taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	NXP Semiconductors N.V. current taxes increased from 2019 to 2020 and from 2020 to 2021.
Deferred taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	NXP Semiconductors N.V. deferred taxes decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Income tax expense (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	NXP Semiconductors N.V. income tax expense (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

NXP Semiconductors N.V., effective income tax rate (EITR) reconciliation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Statutory income tax rate in the Netherlands	25.00%	25.00%	25.00%	25.00%	25.00%
Rate differential between the local statutory rates and the statutory rate of the Netherlands	-1.90%	2,175.00%	5.50%	0.80%	-4.50%
Net change in valuation allowance	-0.90%	3,500.00%	20.20%	0.40%	1.10%
Non-deductible expenses/losses	2.50%	6,100.00%	17.80%	2.70%	2.20%
Sale of non-deductible goodwill	0.00%	0.00%	0.00%	0.00%	3.80%
Netherlands tax incentives	-3.20%	-4,800.00%	-23.20%	-10.60%	-7.50%
Foreign tax incentives	-7.50%	-11,700.00%	-40.50%	-3.70%	-4.70%
Changes in estimates of prior years’ income taxes	-1.00%	-1,300.00%	-1.20%	-3.50%	-0.30%
Sale of non-deductible goodwill	0.00%	1,000.00%	0.00%	0.00%	0.00%
Withholding taxes	-0.40%	-3,100.00%	1.80%	0.00%	0.00%
Other differences	-0.10%	-200.00%	1.50%	-3.70%	-42.90%
Effective tax rate	12.50%	-8,300.00%	6.90%	7.40%	-27.80%

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
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	NXP Semiconductors N.V. effective tax rate decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

NXP Semiconductors N.V., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Operating loss and tax credit carry forwards	317)	480)	499)	598)	621)
Disallowed interest and tax incentive carry forwards	19)	69)	103)	117)	156)
Other accrued liabilities	147)	107)	111)	83)	100)
Pensions	104)	121)	95)	83)	93)
Other non-current liabilities	60)	58)	53)	—)	—)
Share-based compensation	9)	13)	15)	18)	25)
Restructuring liabilities	6)	15)	5)	12)	16)
Receivables	89)	55)	64)	83)	71)
Inventories	5)	8)	4)	2)	3)
Other current assets/liabilities	—)	—)	—)	2)	2)
Deferred tax assets	756)	926)	949)	998)	1,087)
Valuation allowance	(161)	(227)	(190)	(145)	(140)
Deferred tax assets, net of valuation allowance	595)	699)	759)	853)	947)
Identified intangible assets, net	(20)	(116)	(520)	(828)	(1,161)
Undistributed earnings of foreign subsidiaries	(38)	(54)	(99)	(96)	(109)
Property, plant and equipment, net	(7)	(15)	(34)	(47)	(54)
Goodwill	(83)	(66)	(43)	(39)	—)
Other current and non-current assets	(63)	(56)	(52)	—)	—)
Deferred tax liabilities	(211)	(307)	(748)	(1,010)	(1,324)
Net deferred tax position	384)	392)	11)	(157)	(377)

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
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	NXP Semiconductors N.V. deferred tax assets decreased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	NXP Semiconductors N.V. deferred tax assets, net of valuation allowance decreased from 2019 to 2020 and from 2020 to 2021.
Net deferred tax position	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	NXP Semiconductors N.V. net deferred tax position increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

NXP Semiconductors N.V., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
	Deferred tax assets (within other non-current assets)	441)	477)	293)	293)	324)
	Deferred tax liabilities (within non-current liabilities)	57)	85)	282)	450)	701)

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
Deferred tax assets (within other non-current assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	NXP Semiconductors N.V. deferred tax assets (within other non-current assets) increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Deferred tax liabilities (within non-current liabilities)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	NXP Semiconductors N.V. deferred tax liabilities (within non-current liabilities) 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: Noncurrent deferred tax assets, net	441)	477)	293)	293)	324)
Total assets (adjusted)	20,423)	19,370)	19,723)	21,237)	23,725)
Adjustment to Total Liabilities
Total liabilities (as reported)	14,094)	10,696)	10,361)	10,840)	10,333)
Less: Noncurrent deferred tax liabilities, net	57)	85)	282)	450)	701)
Total liabilities (adjusted)	14,037)	10,611)	10,079)	10,390)	9,632)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	6,528)	8,944)	9,441)	10,505)	13,527)
Less: Net deferred tax assets (liabilities)	384)	392)	11)	(157)	(377)
Stockholders’ equity (adjusted)	6,144)	8,552)	9,430)	10,662)	13,904)
Adjustment to Net Income Attributable To Stockholders
Net income attributable to stockholders (as reported)	1,871)	52)	243)	2,208)	2,215)
Add: Deferred income tax expense (benefit)	(20)	(349)	(175)	(211)	(797)
Net income attributable to stockholders (adjusted)	1,851)	(297)	68)	1,997)	1,418)

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
Net Profit Margin
Reported net profit margin	16.91%	0.60%	2.74%	23.47%	23.93%
Adjusted net profit margin	16.73%	-3.45%	0.77%	21.23%	15.32%
Total Asset Turnover
Reported total asset turnover	0.53	0.43	0.44	0.44	0.38
Adjusted total asset turnover	0.54	0.44	0.45	0.44	0.39
Financial Leverage
Reported financial leverage	3.20	2.22	2.12	2.05	1.78
Adjusted financial leverage	3.32	2.26	2.09	1.99	1.71
Return on Equity (ROE)
Reported ROE	28.66%	0.58%	2.57%	21.02%	16.37%
Adjusted ROE	30.13%	-3.47%	0.72%	18.73%	10.20%
Return on Assets (ROA)
Reported ROA	8.97%	0.26%	1.21%	10.26%	9.21%
Adjusted ROA	9.06%	-1.53%	0.34%	9.40%	5.98%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	NXP Semiconductors N.V. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
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 financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	NXP Semiconductors N.V. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	NXP Semiconductors N.V. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA	A profitability ratio calculated as adjusted 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)
Net income attributable to stockholders	1,871)	52)	243)	2,208)	2,215)
Revenue	11,063)	8,612)	8,877)	9,407)	9,256)
Profitability Ratio
Net profit margin¹	16.91%	0.60%	2.74%	23.47%	23.93%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to stockholders	1,851)	(297)	68)	1,997)	1,418)
Revenue	11,063)	8,612)	8,877)	9,407)	9,256)
Profitability Ratio
Adjusted net profit margin²	16.73%	-3.45%	0.77%	21.23%	15.32%

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 Net profit margin = 100 × Net income attributable to stockholders ÷ Revenue
= 100 × 1,871 ÷ 11,063 = 16.91%

² Adjusted net profit margin = 100 × Adjusted net income attributable to stockholders ÷ Revenue
= 100 × 1,851 ÷ 11,063 = 16.73%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	NXP Semiconductors N.V. adjusted net profit margin 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	11,063)	8,612)	8,877)	9,407)	9,256)
Adjusted total assets	20,423)	19,370)	19,723)	21,237)	23,725)
Activity Ratio
Adjusted total asset turnover²	0.54	0.44	0.45	0.44	0.39

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 ÷ 20,423 = 0.54

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	20,423)	19,370)	19,723)	21,237)	23,725)
Adjusted stockholders’ equity	6,144)	8,552)	9,430)	10,662)	13,904)
Solvency Ratio
Adjusted financial leverage²	3.32	2.26	2.09	1.99	1.71

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
= 20,423 ÷ 6,144 = 3.32

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	NXP Semiconductors N.V. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to stockholders	1,851)	(297)	68)	1,997)	1,418)
Adjusted stockholders’ equity	6,144)	8,552)	9,430)	10,662)	13,904)
Profitability Ratio
Adjusted ROE²	30.13%	-3.47%	0.72%	18.73%	10.20%

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 × Adjusted net income attributable to stockholders ÷ Adjusted stockholders’ equity
= 100 × 1,851 ÷ 6,144 = 30.13%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	NXP Semiconductors N.V. adjusted ROE 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to stockholders	1,851)	(297)	68)	1,997)	1,418)
Adjusted total assets	20,423)	19,370)	19,723)	21,237)	23,725)
Profitability Ratio
Adjusted ROA²	9.06%	-1.53%	0.34%	9.40%	5.98%

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 × Adjusted net income attributable to stockholders ÷ Adjusted total assets
= 100 × 1,851 ÷ 20,423 = 9.06%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)