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.

ON Semiconductor Corp., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	8,253,000)	8,326,200)	6,739,800)	5,255,000)	5,517,900)
Cost of revenue	(4,369,500)	(4,249,000)	(4,025,500)	(3,539,200)	(3,544,300)
Gross profit	3,883,500)	4,077,200)	2,714,300)	1,715,800)	1,973,600)
Research and development	(577,300)	(600,200)	(655,000)	(642,900)	(640,900)
Selling and marketing	(279,100)	(287,900)	(293,600)	(278,700)	(301,000)
General and administrative	(362,400)	(343,200)	(304,800)	(258,700)	(284,000)
Litigation settlement	—)	—)	—)	—)	(169,500)
Amortization of acquisition-related intangible assets	(51,100)	(81,200)	(99,000)	(120,300)	(115,200)
Restructuring, asset impairments and other charges, net	(74,900)	(17,900)	(71,400)	(65,200)	(28,700)
Goodwill and intangible asset impairment	—)	(386,800)	(2,900)	(1,300)	(1,600)
Operating expenses	(1,344,800)	(1,717,200)	(1,426,700)	(1,367,100)	(1,540,900)
Operating income	2,538,700)	2,360,000)	1,287,600)	348,700)	432,700)
Interest expense	(74,800)	(94,900)	(130,400)	(168,400)	(148,300)
Interest income	93,100)	15,500)	1,400)	4,900)	10,200)
Loss on debt refinancing and prepayment	(13,300)	(7,100)	(29,000)	—)	(6,200)
Gain (loss) on divestiture of businesses	(700)	67,000)	10,200)	—)	—)
Other income (expense), net	(7,200)	21,700)	18,000)	(8,600)	(11,800)
Other income (expense), net	(2,900)	2,200)	(129,800)	(172,100)	(156,100)
Income before income taxes	2,535,800)	2,362,200)	1,157,800)	176,600)	276,600)
Income tax (provision) benefit	(350,200)	(458,400)	(146,600)	59,800)	(62,700)
Net income	2,185,600)	1,903,800)	1,011,200)	236,400)	213,900)
Net income attributable to non-controlling interest	(1,900)	(1,600)	(1,600)	(2,200)	(2,200)
Net income attributable to ON Semiconductor Corporation	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)

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).

Revenue: Revenue experienced a decline from 5.52 billion in 2019 to 5.26 billion in 2020, followed by strong growth in subsequent years, reaching a peak of 8.33 billion in 2022 before a slight decrease to 8.25 billion in 2023. This indicates a recovery and expansion phase after an initial downturn.
Cost of Revenue: Cost of revenue showed a mostly upward trend, increasing from 3.54 billion in 2019 to 4.37 billion in 2023. The increase occurred steadily over the period, consistent with the rise in revenue, suggesting that cost management did not outpace revenue growth.
Gross Profit: Gross profit followed a pattern reflective of revenue but showed more pronounced improvement, growing from 1.97 billion in 2019, dipping in 2020, then rising sharply to 4.08 billion in 2022, and slightly decreasing to 3.88 billion in 2023. The margin expansion in the middle years suggests improved operational efficiency or favorable product mix.
Research and Development Expenses: Research and development expenses remained relatively stable, slightly decreasing from 641 million in 2019 to 577 million in 2023, indicating consistent investment in innovation with minor cost reductions.
Selling and Marketing Expenses: These expenses showed a gradual decline over the period, from 301 million in 2019 to 279 million in 2023, reflecting a modest reduction in sales-related costs or possible efficiency enhancements.
General and Administrative Expenses: General and administrative expenses increased steadily from 284 million in 2019 to 362 million in 2023, suggesting higher overhead or administrative costs, which may warrant management attention.
Litigation Settlement: A significant non-recurring litigation settlement expense of 169.5 million was recorded in 2019, with no subsequent similar expenses, indicating a one-time charge that impacted that year's results.
Amortization of Acquisition-related Intangible Assets: This expense decreased consistently from 115 million in 2019 to 51 million in 2023, reflecting the diminishing amortization costs over time, likely due to the aging of acquired intangible assets.
Restructuring, Asset Impairments and Other Charges: Charges fluctuated year to year without a clear trend, with notable peaks in 2021 (71.4 million) and 2023 (74.9 million). The variability suggests episodic restructuring or write-down activities impacting operating costs.
Goodwill and Intangible Asset Impairment: Relatively minor impairment charges were recorded from 2019 to 2021, but a substantial impairment of 386.8 million occurred in 2022, indicating significant write-downs possibly due to changes in asset valuation or restructuring.
Operating Expenses: Operating expenses generally increased from 1.54 billion in 2019 to a peak of 1.72 billion in 2022, before decreasing to 1.34 billion in 2023. The drop in 2023 suggests improved cost controls or the impact of one-time expenses in prior years.
Operating Income: Operating income showed a decline from 432.7 million in 2019 to 348.7 million in 2020, followed by substantial growth to 1.29 billion in 2021 and a further increase, peaking at 2.54 billion in 2023. This reflects enhanced profitability tied to revenue growth and operational efficiencies despite certain impairments.
Interest Expense: Interest expenses decreased steadily from 148.3 million in 2019 to 74.8 million in 2023, indicating reduced debt servicing costs or lower debt levels.
Interest Income: Interest income was relatively low until a significant increase to 93.1 million in 2023, which may indicate improved cash management or higher invested balances.
Loss on Debt Refinancing and Prepayment: This expense showed irregular occurrences, with a notable 29 million loss in 2021, otherwise fluctuating at lower levels, suggesting occasional refinancing activities with mixed financial impacts.
Gain (Loss) on Divestiture of Businesses: Gains from divestitures were recognized in 2021 (10.2 million) and substantially in 2022 (67 million), followed by a small loss in 2023, implying active portfolio management with occasional positive impacts on income.
Other Income (Expense), Net: After negative net other income in early years, a positive reversal occurred in 2022, followed by minor negative values in 2023. This volatility indicates non-operating income fluctuations with limited material impact on overall profitability.
Income Before Income Taxes: Income before taxes declined initially but surged from 176.6 million in 2020 to 2.54 billion in 2023, driven by operating income growth and controlled costs, marking significant profitability improvement.
Income Tax Provision: The tax provision fluctuated, with a benefit in 2020 and significant provisions in later years, peaking at 458.4 million in 2022 before reducing to 350.2 million in 2023, consistent with increased taxable income.
Net Income: Net income reflected strong growth from 213.9 million in 2019 to 2.19 billion in 2023, highlighting enhanced profitability and effective cost management.
Net Income Attributable to Non-controlling Interest: This was consistently minor and negative across all years, indicating limited impact on overall net income attributable to the company.
Net Income Attributable to ON Semiconductor Corporation: The earnings attributable to the company matched the net income trend closely, illustrating that the majority of net income benefits the shareholders directly, with substantial growth after 2020.

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ON Semiconductor Corp. (NASDAQ:ON)

Income Statement