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)

ON Semiconductor Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	372,700)	331,900)	8,000)	600)	1,200)
State and local	21,600)	31,800)	4,800)	100)	—)
Foreign	76,900)	73,800)	43,300)	54,000)	48,500)
Current	471,200)	437,500)	56,100)	54,700)	49,700)
Federal	(107,900)	(36,900)	89,200)	(69,200)	(5,000)
State and local	13,200)	25,700)	7,800)	(66,400)	—)
Foreign	(26,300)	32,100)	(6,500)	21,100)	18,000)
Deferred	(121,000)	20,900)	90,500)	(114,500)	13,000)
Provision (benefit) for income taxes	350,200)	458,400)	146,600)	(59,800)	62,700)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	ON Semiconductor Corp. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	ON Semiconductor Corp. deferred decreased from 2021 to 2022 and from 2022 to 2023.
Provision (benefit) for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	ON Semiconductor Corp. provision (benefit) for income taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

ON Semiconductor Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State and local taxes, net of federal tax benefit	0.70%	1.70%	1.40%	-1.40%	-2.60%
Impact of foreign operations	0.30%	1.70%	-2.00%	7.60%	3.80%
Foreign derived intangible income benefit	-6.80%	-7.40%	-7.80%	0.00%	0.00%
Nondeductible goodwill	0.00%	3.10%	0.00%	0.00%	0.00%
Impact of the Domestication	0.00%	0.00%	0.00%	-35.70%	0.00%
Change in valuation allowance and related effects	0.50%	-0.10%	-0.40%	-24.40%	1.80%
Share-based compensation costs	-0.20%	-0.50%	-0.10%	1.70%	-0.50%
U.S. federal R&D credit	-0.40%	-0.20%	-0.40%	-3.60%	-3.70%
Non-deductible officer compensation	0.30%	0.30%	0.40%	1.10%	1.50%
Impact of audit settlement	-1.80%	0.00%	0.00%	0.00%	0.00%
Other	0.20%	-0.20%	0.60%	-0.10%	1.40%
Effective income tax rate	13.80%	19.40%	12.70%	-33.80%	22.70%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	ON Semiconductor Corp. effective income tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

ON Semiconductor Corp., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
NOL and tax credit carryforwards	227,600)	221,600)	354,400)	471,600)	612,900)
163 (j) interest expense carryforward	4,600)	5,100)	17,400)	65,700)	49,300)
Lease liabilities	59,700)	65,000)	50,200)	32,500)	22,100)
ROU asset	(58,900)	(60,900)	(49,200)	(32,500)	(22,100)
Tax-deductible goodwill and amortizable intangibles	(32,200)	(35,900)	(57,500)	(38,000)	(48,600)
Capitalization of research and development expenses	419,900)	311,400)	185,800)	90,700)	42,700)
Reserves and accruals	60,200)	79,100)	109,200)	68,400)	27,500)
Property, plant and equipment	(165,100)	(156,300)	(110,600)	(95,800)	(81,200)
Inventories	134,200)	78,300)	67,900)	84,300)	22,000)
Undistributed earnings of foreign subsidiaries	(67,700)	(64,200)	(58,700)	(57,500)	(63,700)
Share-based compensation	9,700)	7,500)	7,900)	7,700)	10,300)
Pension	5,800)	7,500)	15,300)	21,200)	26,300)
Convertible Debt	108,100)	—)	—)	—)	—)
Other	6,500)	36,800)	18,400)	3,200)	8,000)
Deferred tax assets and liabilities before valuation allowance	712,400)	495,000)	550,500)	621,500)	605,500)
Valuation allowance	(150,300)	(152,400)	(227,400)	(249,900)	(357,900)
Net deferred tax asset (liability)	562,100)	342,600)	323,100)	371,600)	247,600)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	ON Semiconductor Corp. net deferred tax asset (liability) increased from 2021 to 2022 and from 2022 to 2023.

ON Semiconductor Corp., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	600,800)	376,700)	366,300)	429,000)	307,800)
	Deferred tax liabilities	38,700)	34,100)	43,200)	57,300)	60,200)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax 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.	ON Semiconductor Corp. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	ON Semiconductor Corp. deferred tax liabilities decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

ON Semiconductor Corp., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	13,215,200)	11,978,500)	9,626,000)	8,668,000)	8,425,500)
Less: Noncurrent deferred tax assets, net	600,800)	376,700)	366,300)	429,000)	307,800)
Total assets (adjusted)	12,614,400)	11,601,800)	9,259,700)	8,239,000)	8,117,700)
Adjustment to Total Liabilities
Total liabilities (as reported)	5,414,600)	5,771,500)	5,021,600)	5,109,900)	5,101,400)
Less: Noncurrent deferred tax liabilities, net	38,700)	34,100)	43,200)	57,300)	60,200)
Total liabilities (adjusted)	5,375,900)	5,737,400)	4,978,400)	5,052,600)	5,041,200)
Adjustment to Total ON Semiconductor Corporation Stockholders’ Equity
Total ON Semiconductor Corporation stockholders’ equity (as reported)	7,782,600)	6,188,500)	4,585,400)	3,538,500)	3,301,700)
Less: Net deferred tax assets (liabilities)	562,100)	342,600)	323,100)	371,600)	247,600)
Total ON Semiconductor Corporation stockholders’ equity (adjusted)	7,220,500)	5,845,900)	4,262,300)	3,166,900)	3,054,100)
Adjustment to Net Income Attributable To ON Semiconductor Corporation
Net income attributable to ON Semiconductor Corporation (as reported)	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)
Add: Deferred income tax expense (benefit)	(121,000)	20,900)	90,500)	(114,500)	13,000)
Net income attributable to ON Semiconductor Corporation (adjusted)	2,062,700)	1,923,100)	1,100,100)	119,700)	224,700)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

ON Semiconductor Corp., Financial Data: Reported vs. Adjusted

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ON Semiconductor Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	26.46%	22.85%	14.98%	4.46%	3.84%
Adjusted net profit margin	24.99%	23.10%	16.32%	2.28%	4.07%
Total Asset Turnover
Reported total asset turnover	0.62	0.70	0.70	0.61	0.65
Adjusted total asset turnover	0.65	0.72	0.73	0.64	0.68
Financial Leverage
Reported financial leverage	1.70	1.94	2.10	2.45	2.55
Adjusted financial leverage	1.75	1.98	2.17	2.60	2.66
Return on Equity (ROE)
Reported ROE	28.06%	30.74%	22.02%	6.62%	6.41%
Adjusted ROE	28.57%	32.90%	25.81%	3.78%	7.36%
Return on Assets (ROA)
Reported ROA	16.52%	15.88%	10.49%	2.70%	2.51%
Adjusted ROA	16.35%	16.58%	11.88%	1.45%	2.77%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	ON Semiconductor Corp. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	ON Semiconductor Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
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.	ON Semiconductor Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	ON Semiconductor Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	ON Semiconductor Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

ON Semiconductor Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ON Semiconductor Corporation	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)
Revenue	8,253,000)	8,326,200)	6,739,800)	5,255,000)	5,517,900)
Profitability Ratio
Net profit margin¹	26.46%	22.85%	14.98%	4.46%	3.84%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ON Semiconductor Corporation	2,062,700)	1,923,100)	1,100,100)	119,700)	224,700)
Revenue	8,253,000)	8,326,200)	6,739,800)	5,255,000)	5,517,900)
Profitability Ratio
Adjusted net profit margin²	24.99%	23.10%	16.32%	2.28%	4.07%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to ON Semiconductor Corporation ÷ Revenue
= 100 × 2,183,700 ÷ 8,253,000 = 26.46%

² Adjusted net profit margin = 100 × Adjusted net income attributable to ON Semiconductor Corporation ÷ Revenue
= 100 × 2,062,700 ÷ 8,253,000 = 24.99%

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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.	ON Semiconductor Corp. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue	8,253,000)	8,326,200)	6,739,800)	5,255,000)	5,517,900)
Total assets	13,215,200)	11,978,500)	9,626,000)	8,668,000)	8,425,500)
Activity Ratio
Total asset turnover¹	0.62	0.70	0.70	0.61	0.65
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	8,253,000)	8,326,200)	6,739,800)	5,255,000)	5,517,900)
Adjusted total assets	12,614,400)	11,601,800)	9,259,700)	8,239,000)	8,117,700)
Activity Ratio
Adjusted total asset turnover²	0.65	0.72	0.73	0.64	0.68

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 8,253,000 ÷ 13,215,200 = 0.62

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 8,253,000 ÷ 12,614,400 = 0.65

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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.	ON Semiconductor Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	13,215,200)	11,978,500)	9,626,000)	8,668,000)	8,425,500)
Total ON Semiconductor Corporation stockholders’ equity	7,782,600)	6,188,500)	4,585,400)	3,538,500)	3,301,700)
Solvency Ratio
Financial leverage¹	1.70	1.94	2.10	2.45	2.55
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	12,614,400)	11,601,800)	9,259,700)	8,239,000)	8,117,700)
Adjusted total ON Semiconductor Corporation stockholders’ equity	7,220,500)	5,845,900)	4,262,300)	3,166,900)	3,054,100)
Solvency Ratio
Adjusted financial leverage²	1.75	1.98	2.17	2.60	2.66

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total ON Semiconductor Corporation stockholders’ equity
= 13,215,200 ÷ 7,782,600 = 1.70

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ON Semiconductor Corporation stockholders’ equity
= 12,614,400 ÷ 7,220,500 = 1.75

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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.	ON Semiconductor Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ON Semiconductor Corporation	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)
Total ON Semiconductor Corporation stockholders’ equity	7,782,600)	6,188,500)	4,585,400)	3,538,500)	3,301,700)
Profitability Ratio
ROE¹	28.06%	30.74%	22.02%	6.62%	6.41%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ON Semiconductor Corporation	2,062,700)	1,923,100)	1,100,100)	119,700)	224,700)
Adjusted total ON Semiconductor Corporation stockholders’ equity	7,220,500)	5,845,900)	4,262,300)	3,166,900)	3,054,100)
Profitability Ratio
Adjusted ROE²	28.57%	32.90%	25.81%	3.78%	7.36%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income attributable to ON Semiconductor Corporation ÷ Total ON Semiconductor Corporation stockholders’ equity
= 100 × 2,183,700 ÷ 7,782,600 = 28.06%

² Adjusted ROE = 100 × Adjusted net income attributable to ON Semiconductor Corporation ÷ Adjusted total ON Semiconductor Corporation stockholders’ equity
= 100 × 2,062,700 ÷ 7,220,500 = 28.57%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	ON Semiconductor Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ON Semiconductor Corporation	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)
Total assets	13,215,200)	11,978,500)	9,626,000)	8,668,000)	8,425,500)
Profitability Ratio
ROA¹	16.52%	15.88%	10.49%	2.70%	2.51%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ON Semiconductor Corporation	2,062,700)	1,923,100)	1,100,100)	119,700)	224,700)
Adjusted total assets	12,614,400)	11,601,800)	9,259,700)	8,239,000)	8,117,700)
Profitability Ratio
Adjusted ROA²	16.35%	16.58%	11.88%	1.45%	2.77%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income attributable to ON Semiconductor Corporation ÷ Total assets
= 100 × 2,183,700 ÷ 13,215,200 = 16.52%

² Adjusted ROA = 100 × Adjusted net income attributable to ON Semiconductor Corporation ÷ Adjusted total assets
= 100 × 2,062,700 ÷ 12,614,400 = 16.35%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	ON Semiconductor Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

ON Semiconductor Corp. (NASDAQ:ON)

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

ON Semiconductor Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

ON Semiconductor Corp., 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)