Name: NXP Semiconductors N.V. (NASDAQ:NXPI) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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NXP Semiconductors N.V., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Revenue	11,063)	8,612)	8,877)	9,407)	9,256)
Cost of revenue	(4,996)	(4,377)	(4,259)	(4,556)	(4,637)
Gross profit	6,067)	4,235)	4,618)	4,851)	4,619)
Research and development	(1,936)	(1,725)	(1,643)	(1,700)	(1,554)
Selling, general and administrative	(956)	(879)	(924)	(993)	(1,090)
Amortization of acquisition-related intangible assets	(592)	(1,327)	(1,435)	(1,449)	(1,448)
Operating expenses	(3,484)	(3,931)	(4,002)	(4,142)	(4,092)
Result from manufacturing service arrangements (MSA) and transitional service arrangements (TSA)	(2)	—)	—)	—)	—)
Other, net	2)	114)	25)	2,001)	1,575)
Other income (expense)	—)	114)	25)	2,001)	1,575)
Operating income	2,583)	418)	641)	2,710)	2,102)
Interest income	4)	13)	57)	48)	27)
Interest expense	(369)	(362)	(370)	(273)	(310)
Interest expense, net	(365)	(349)	(313)	(225)	(283)
Net loss on extinguishment of debt	(22)	(60)	(11)	(26)	(41)
Foreign exchange rate results	5)	(16)	(15)	(14)	(30)
Miscellaneous financing income (expense) and other, net	(21)	8)	(11)	(70)	(12)
Other financial income (expense)	(38)	(68)	(37)	(110)	(83)
Financial income (expense)	(403)	(417)	(350)	(335)	(366)
Income before income taxes	2,180)	1)	291)	2,375)	1,736)
(Provision) benefit for income taxes	(272)	83)	(20)	(176)	483)
Results relating to equity-accounted investees	(2)	(4)	1)	59)	53)
Net income	1,906)	80)	272)	2,258)	2,272)
Net income attributable to non-controlling interests	(35)	(28)	(29)	(50)	(57)
Net income attributable to stockholders	1,871)	52)	243)	2,208)	2,215)

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).

The financial performance from 2017 to 2021 is characterized by a period of relative stability followed by a significant contraction in net profitability, concluding with a robust recovery in the final year. Revenue remained relatively flat between 2017 and 2020, before experiencing a substantial increase in 2021, reaching 11.06 billion US dollars.

Revenue and Gross Profitability: A steady gross profit margin is observed throughout the period, with a notable expansion in 2021. While revenue fluctuated between 8.6 billion and 9.4 billion US dollars from 2017 to 2020, the 2021 surge coincided with a peak gross profit of 6.07 billion US dollars. This suggests an improvement in operational efficiency or a favorable shift in product mix during the final year of the analysis.
Operating Expense Trends: Operating expenses showed a gradual decline, falling from 4.09 billion US dollars in 2017 to 3.48 billion US dollars in 2021. A primary driver of this reduction was the significant decrease in the amortization of acquisition-related intangible assets, which dropped from a peak of approximately 1.45 billion US dollars in 2017-2018 to 592 million US dollars in 2021. Conversely, research and development spending increased steadily, reaching 1.94 billion US dollars in 2021, indicating a continued commitment to innovation despite overall cost-cutting in other areas.
Operating Income and Non-Operating Items: Operating income exhibited high volatility, peaking in 2018 at 2.71 billion US dollars before dropping sharply to 418 million US dollars in 2020. This volatility was heavily influenced by "Other, net" income, which provided substantial boosts of 1.58 billion and 2.00 billion US dollars in 2017 and 2018, respectively, but became negligible from 2019 onward. The 2021 recovery to 2.58 billion US dollars in operating income was driven by organic revenue growth and reduced amortization rather than one-time gains.
Financial Costs and Debt Management: Financial income and expenses remained consistently negative, acting as a drag on the bottom line. Interest expense stayed relatively stable, ranging between 273 million and 370 million US dollars annually. Net financial income (expense) consistently fluctuated between -335 million and -417 million US dollars, indicating a steady cost of debt service throughout the five-year period.
Net Income and Shareholder Returns: Net income attributable to stockholders followed a V-shaped trajectory. After maintaining levels above 2.2 billion US dollars in 2017 and 2018, profitability plummeted to 243 million US dollars in 2019 and a low of 52 million US dollars in 2020. This decline aligns with the disappearance of the large "Other, net" income gains seen in earlier years. A strong rebound occurred in 2021, with net income attributable to stockholders rising to 1.87 billion US dollars, driven by the combination of record revenues and lower operating expenses.

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