8-K

NXP Semiconductors N.V. 8-K Report (Mar 3, 2017)

Filed March 3, 2017For Securities:NXPI

Summary

NXP Semiconductors N.V. (NXPI) filed its Annual Report on Form 20-F on March 3, 2017. This filing provides updated financial results for the full year 2016. The key update stems from the completion of the disposition of its Standard Products business on February 6, 2017. This event allowed NXP to reassess its deferred tax asset valuation allowance. As a result of the Standard Products business disposition, NXP was able to conclude that a reduction in its deferred tax asset valuation allowance was appropriate as of December 31, 2016. This adjustment led to the recognition of an additional tax benefit of $392 million in the company's consolidated statement of operations. Investors should note that this tax benefit was not included in the preliminary fourth quarter and full-year 2016 results previously reported on February 2, 2017.

Key Highlights

  • 1NXP Semiconductors N.V. filed its Annual Report on Form 20-F on March 3, 2017.
  • 2The filing updates the company's full-year 2016 financial results.
  • 3The Standard Products business disposition was completed on February 6, 2017.
  • 4The completion of the business disposition triggered a reassessment of the deferred tax asset valuation allowance.
  • 5NXP recognized an additional tax benefit of $392 million due to the reduction in the valuation allowance.
  • 6This tax benefit is an update to previously reported 2016 results.
  • 7The company is incorporated in The Netherlands and files annual reports on Form 20-F.

Frequently Asked Questions

This 8-K filing primarily serves to announce that NXP Semiconductors N.V. has filed its Annual Report on Form 20-F and to provide an update on its full-year 2016 financial results, specifically related to a tax benefit recognized after the disposition of its Standard Products business.

The completion of the Standard Products business disposition on February 6, 2017, allowed NXP to reduce its deferred tax asset valuation allowance. This resulted in the recognition of an additional tax benefit of $392 million in the company's consolidated statement of operations for the full year 2016.

Yes, the full-year 2016 results presented in the Form 20-F update the financial results previously reported on February 2, 2017. The key difference is the inclusion of the $392 million tax benefit recognized due to the reduction in the deferred tax asset valuation allowance.

A deferred tax asset valuation allowance is a reserve that a company sets aside on its balance sheet to account for the possibility that it may not be able to realize the full benefit of its deferred tax assets. Such assets typically arise from net operating losses or tax credits that can be carried forward to reduce future tax liabilities. The reduction of this allowance, as in NXP's case, indicates increased confidence in the company's ability to utilize these tax assets.