Summary
NXP Semiconductors N.V.'s 2015 10-K filing (though presented as a Form 20-F) highlights a transformative year primarily driven by the significant acquisition of Freescale Semiconductor, Ltd. This merger, completed in December 2015, created a leading player in automotive and secure connected device semiconductor markets, significantly expanding NXP's revenue and market reach. Revenue for 2015 reached $6.1 billion, an 8% increase year-over-year, largely due to the inclusion of Freescale's operations for the last month of the year. The company incurred substantial merger-related costs and restructuring charges in 2015, impacting operating expenses. Despite these integration-related costs and a significant increase in debt to finance the acquisition, NXP's financial position at year-end 2015 showed a substantial increase in total assets and equity compared to 2014.
Financial Highlights
54 data points| Revenue | $6.10B |
| Cost of Revenue | $3.31B |
| Gross Profit | $2.79B |
| R&D Expenses | $890.00M |
| SG&A Expenses | $922.00M |
| Operating Income | $2.02B |
| Interest Expense | $227.00M |
| Net Income | $1.53B |
| EPS (Basic) | $6.36 |
| EPS (Diluted) | $6.10 |
| Shares Outstanding (Basic) | 239.76M |
| Shares Outstanding (Diluted) | 250.12M |
Key Highlights
- 1The acquisition of Freescale Semiconductor, Ltd. for approximately $11.6 billion was completed on December 7, 2015, creating a combined entity with expanded market leadership in automotive and secure semiconductor solutions.
- 2Total revenue for 2015 increased by 8.0% to $6.101 billion, primarily driven by growth in the High Performance Mixed Signal (HPMS) segment, boosted by the Freescale acquisition.
- 3Gross profit increased to $2.787 billion (45.7% of revenue) from $2.640 billion (46.8% of revenue) in 2014. The decrease in gross margin percentage was largely due to purchase accounting adjustments on inventory acquired from Freescale.
- 4Operating expenses significantly increased to $2.035 billion (33.4% of revenue) in 2015 from $1.601 billion (28.4% of revenue) in 2014, primarily due to merger-related costs, amortization of acquisition-related intangibles, and restructuring charges.
- 5The company reported significant "Other income" of $1.263 billion in 2015, primarily from gains on the sale of its Bipolar Power and RF Power businesses.
- 6Total debt increased substantially to $9.212 billion as of December 31, 2015, from $3.956 billion in 2014, largely due to debt incurred to finance the Freescale acquisition.
- 7Net income attributable to stockholders was $1.526 billion ($6.10 per diluted share) in 2015, a significant increase from $539 million ($2.17 per diluted share) in 2014.