Supplemental Financial Information

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Financial Information

Supplemental Financial Information

Statement of Operations Information

Disaggregation of revenue

The following table presents revenue disaggregated by sales channel:

	2023	2022	2021
Distributors	7,195	7,261	6,325
Original Equipment Manufacturers and Electronic Manufacturing Services	5,963	5,775	4,587
Other	118	169	151
Total	13,276	13,205	11,063

Government assistance

The Company primarily benefits from country specific R&D tax credits ("RTC") (for the period ending December 31, 2023: $80 million) as well as direct grants in different jurisdictions (for the period ending December 31, 2023: $43 million).

The grants recorded in operating income are included in the following line items in the statement of operations:

	2023	2022
Cost of Revenue	5	3
Research & Development	116	83
Selling, General and Administrative	2	2
	123	88

The classification of the grants' related assets and liabilities in the Company’s Consolidated Balance Sheets is as follows:

	2023	2022
Other current assets	95	57
Other non-current assets	71	57
Other current liabilities	25	15
Other non-current liabilities	4	4

The duration of our RTC is indefinite while subject to future policy changes in the respective countries. RTC amounts received are subject to regular audits by the relevant governments. RTC receivables are, depending on their jurisdiction, settled against income or payroll taxes, or paid in cash within a maximum period of three years.

Our direct grants include those awarded under the European 2nd Important Project of Common European Interest on Microelectronics and Communication Technologies (“IPCEI ME/CT”). During the fourth quarter of 2023, the Company was granted IPCEI ME/CT government assistance in multiple EU member states. The duration of the IPCEI ME/CT grants is planned to run until the end of 2029. The conditions to receive the IPCEI ME/CT government assistance include restrictions on eligible expenditures, employment retention, annual budget appropriations by the member states, compliance with member states’ regulations and project objectives and results, as well as repayment conditions.

Depreciation, amortization and impairment

Depreciation and amortization, including impairment charges, are as follows:

	2023	2022	2021
Depreciation of property, plant and equipment	652	605	551
Amortization of internal use software	20	12	7
Amortization of other identified intangible assets (*)	434	633	704
	1,106	1,250	1,262

(*)    For the period ending December 31, 2021, the amount includes an impairment charge as a result of the discontinuation of an IPR&D project for an amount of $36 million.

Depreciation of property, plant and equipment is primarily included in cost of revenue.

Other income (expense)

Income derived from manufacturing service arrangements (“MSA”) and transitional service arrangements (“TSA”) that are put in place when we divest a business or activity, is included in other income (expense). These arrangements are expected to decrease as the divested business or activity becomes more established.

The following table presents the split of other income (expense):

	2023	2022	2021
Result from MSA and TSA arrangements	(11)	2	(2)
Other, net	(4)	1	2
Total	(15)	3	—

Financial income (expense)

	2023	2022	2021
Interest income	187	61	4
Interest expense	(438)	(427)	(369)
Net gain (loss) on extinguishment of debt	—	(18)	(22)
Total other financial income (expense)	(58)	(50)	(16)
Total	(309)	(434)	(403)

Balance Sheet Information

Cash and cash equivalents

At December 31, 2023 and December 31, 2022, our cash balance was $3,862 million and $3,845 million, respectively, of which $214 million and $227 million was held by SSMC, our consolidated joint venture company with TSMC. Under the terms of our joint venture agreement with TSMC, a portion of this cash can be distributed by way of a dividend to us, but 38.8% of the dividend will be paid to our joint venture partner. During 2023 and 2022, no dividend was paid by SSMC.

Equity Investments

At December 31, 2023 and December 31, 2022, the total carrying value of investments in equity securities is summarized as follows:

	2023	2022
Marketable equity securities	12	9
Non-marketable equity securities	55	18
Equity-accounted investments	101	71
	168	98

The total carrying value of investments in equity-accounted investees is summarized as follows:

	2023			2022
	Shareholding %		Amount	Shareholding %		Amount
SMART Growth Fund, L.P.	8.41	%	42	8.41	%	38
SigmaSense, LLC	10.64	%	33	—		—
Others	—		26	—		33
			101			71

Results related to equity-accounted investees at the end of each period were as follows:

	2023	2022	2021
Company’s share in income (loss)	(7)	4	(1)
Other results	—	(5)	(1)
	(7)	(1)	(2)

Other current liabilities

Other current liabilities at December 31, 2023 and December 31, 2022 consisted of the following:

	2023	2022
Accrued compensation and benefits	500	467
Customer programs	280	432
Income taxes payable	170	296
Dividend payable	261	219
Other	644	652
	1,855	2,066

We have reclassified certain amounts related to customer programs previously presented in “Accounts payable” to “Other current liabilities” as of December 31, 2022 to conform to current period presentation as follows:

	2022
Accounts payable:
As reported	1,617
Reclassification - customer programs	(432)
Adjusted	1,185
Other current liabilities:
As reported	1,634
Reclassification - customer programs	432
Adjusted	2,066