ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact Name of Registrant as Specified in Its Charter) | ||||||||||||||
(State of Incorporation) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code | ||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Securities registered pursuant to Section 12(g) of the Act: None |
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | ||||||||||||||
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. | ||||||||||||||
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). | ☐ |
Market | Sector | |||||||
Industrial | Factory automation & control | |||||||
(40% of TI revenue) | Grid infrastructure | |||||||
Medical | ||||||||
Aerospace & defense | ||||||||
Test & measurement | ||||||||
Building automation | ||||||||
Motor drives | ||||||||
Power delivery | ||||||||
Appliances | ||||||||
Pro audio, video & signage | ||||||||
Industrial transport | ||||||||
Retail automation & payment | ||||||||
Lighting | ||||||||
Automotive | Infotainment & cluster | |||||||
(34% of TI revenue) | Hybrid, electric & powertrain systems | |||||||
Advanced driver assistance systems (ADAS) | ||||||||
Body electronics & lighting | ||||||||
Passive safety | ||||||||
Personal electronics | Mobile phones | |||||||
(15% of TI revenue) | PC & notebooks | |||||||
Portable electronics | ||||||||
TV | ||||||||
Connected peripherals & printers | ||||||||
Tablets | ||||||||
Home theater & entertainment | ||||||||
Gaming | ||||||||
Wearables (non-medical) | ||||||||
Data storage | ||||||||
Communications equipment | Wireless infrastructure | |||||||
(5% of TI revenue) | Wired networking | |||||||
Broadband fixed line access | ||||||||
Datacom module | ||||||||
Enterprise systems | Data center & enterprise computing | |||||||
(4% of TI revenue) | Enterprise projectors | |||||||
Enterprise machine | ||||||||
Other (calculators and other) | ||||||||
(2% of TI revenue) |
Name | Age | Position | ||||||||||||
Ahmad S. Bahai | 61 | Senior Vice President | ||||||||||||
Mark S. Gary | 49 | Senior Vice President | ||||||||||||
Haviv Ilan | 55 | Director, President and Chief Executive Officer | ||||||||||||
Hagop H. Kozanian | 41 | Senior Vice President | ||||||||||||
Shanon J. Leonard | 48 | Senior Vice President | ||||||||||||
Rafael R. Lizardi | 51 | Senior Vice President and Chief Financial Officer | ||||||||||||
Mark T. Roberts | 48 | Senior Vice President | ||||||||||||
Amichai Ron | 46 | Senior Vice President | ||||||||||||
Richard K. Templeton | 65 | Director and Chairman of the Board | ||||||||||||
Cynthia Hoff Trochu | 60 | Senior Vice President, Secretary and General Counsel | ||||||||||||
Christine A. Witzsche | 39 | Senior Vice President | ||||||||||||
Mohammad Yunus | 46 | Senior Vice President |
Analog | Embedded Processing | ||||||||||
North Texas (Dallas, Richardson and Sherman) | X | X | |||||||||
Lehi, Utah | X | X | |||||||||
South Portland, Maine | X | ||||||||||
Santa Clara, California | X | ||||||||||
Houston, Texas | X | ||||||||||
Tucson, Arizona | X | ||||||||||
Chengdu, China * | X | X | |||||||||
Shanghai, China ** | X | X | |||||||||
Freising, Germany | X | X | |||||||||
Bangalore, India * | X | X | |||||||||
Aizu, Japan | X | X | |||||||||
Miho, Japan | X | X | |||||||||
Kuala Lumpur, Malaysia * | X | X | |||||||||
Melaka, Malaysia * | X | ||||||||||
Aguascalientes, Mexico ** | X | ||||||||||
Baguio, Philippines * | X | X | |||||||||
Pampanga (Clark), Philippines * | X | X | |||||||||
Taipei, Taiwan * | X | X |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (a) | ||||||||||||||||||||||||||||||||||
October 1, 2023 through October 31, 2023 | 329,147 | $ | 149.62 | 318,738 | $ | 21.21 | billion | |||||||||||||||||||||||||||||||
November 1, 2023 through November 30, 2023 | 76,200 | 148.19 | 76,200 | 21.20 | billion | |||||||||||||||||||||||||||||||||
December 1, 2023 through December 31, 2023 | 17,652 | 157.14 | 17,652 | 21.20 | billion | |||||||||||||||||||||||||||||||||
Total | 422,999 | (b) | $ | 149.67 | (b) | 412,590 | $ | 21.20 | billion (c) |
2023 | 2022 | Change | |||||||||||||||
Revenue | $ | 13,040 | $ | 15,359 | (15) | % | |||||||||||
Operating profit | 5,821 | 8,359 | (30) | % | |||||||||||||
Operating profit % of revenue | 44.6 | % | 54.4 | % |
2023 | 2022 | Change | |||||||||||||||
Revenue | $ | 3,368 | $ | 3,261 | 3 | % | |||||||||||
Operating profit | 1,008 | 1,253 | (20) | % | |||||||||||||
Operating profit % of revenue | 29.9 | % | 38.4 | % |
2023 | 2022 | Change | |||||||||||||||
Revenue | $ | 1,111 | $ | 1,408 | (21) | % | |||||||||||
Operating profit * | 502 | 528 | (5) | % | |||||||||||||
Operating profit % of revenue | 45.2 | % | 37.5 | % |
For Years Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flow from operations (GAAP) | $ | 6,420 | $ | 8,720 | |||||||
Capital expenditures | (5,071) | (2,797) | |||||||||
Free cash flow (non-GAAP) | $ | 1,349 | $ | 5,923 | |||||||
Revenue | $ | 17,519 | $ | 20,028 | |||||||
Cash flow from operations as a percentage of revenue (GAAP) | 36.6 | % | 43.5 | % | |||||||
Free cash flow as a percentage of revenue (non-GAAP) | 7.7 | % | 29.6 | % |
Consolidated Statements of Income | For Years Ended December 31, | |||||||||||||||||||
(In millions, except per-share amounts) | 2023 | 2022 | 2021 | |||||||||||||||||
Revenue | $ | $ | $ | |||||||||||||||||
Cost of revenue (COR) | ||||||||||||||||||||
Gross profit | ||||||||||||||||||||
Research and development (R&D) | ||||||||||||||||||||
Selling, general and administrative (SG&A) | ||||||||||||||||||||
Acquisition charges | ||||||||||||||||||||
Restructuring charges/other | ||||||||||||||||||||
Operating profit | ||||||||||||||||||||
Other income (expense), net (OI&E) | ||||||||||||||||||||
Interest and debt expense | ||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||
Provision for income taxes | ||||||||||||||||||||
Net income | $ | $ | $ | |||||||||||||||||
Earnings per common share (EPS): | ||||||||||||||||||||
Basic | $ | $ | $ | |||||||||||||||||
Diluted | $ | $ | $ | |||||||||||||||||
Average shares outstanding: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Diluted | ||||||||||||||||||||
A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS is calculated using the following: | ||||||||||||||||||||
Net income | $ | $ | $ | |||||||||||||||||
Income allocated to RSUs | ( | ( | ( | |||||||||||||||||
Income allocated to common stock for diluted EPS | $ | $ | $ |
Consolidated Statements of Comprehensive Income | For Years Ended December 31, | |||||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Net income | $ | $ | $ | |||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Net actuarial losses of defined benefit plans: | ||||||||||||||||||||
Adjustments, net of tax effect of ($ | ( | |||||||||||||||||||
Recognized within net income, net of tax effect of ($ | ||||||||||||||||||||
Prior service cost (credit) of defined benefit plans: | ||||||||||||||||||||
Recognized within net income, net of tax effect of $ | ( | ( | ||||||||||||||||||
Derivative instruments: | ||||||||||||||||||||
Change in fair value, net of tax effect of $ | ||||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||
Unrealized gains (losses), net of tax effect of ($ | ( | |||||||||||||||||||
Other comprehensive income (loss), net of taxes | ( | |||||||||||||||||||
Total comprehensive income | $ | $ | $ |
Consolidated Balance Sheets | December 31, | |||||||||||||
(In millions, except par value) | 2023 | 2022 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||
Accounts receivable, net of allowances of ($ | ||||||||||||||
Raw materials | ||||||||||||||
Work in process | ||||||||||||||
Finished goods | ||||||||||||||
Inventories | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment at cost | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Property, plant and equipment | ||||||||||||||
Goodwill | ||||||||||||||
Deferred tax assets | ||||||||||||||
Capitalized software licenses | ||||||||||||||
Overfunded retirement plans | ||||||||||||||
Other long-term assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | $ | ||||||||||||
Accounts payable | ||||||||||||||
Accrued compensation | ||||||||||||||
Income taxes payable | ||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Underfunded retirement plans | ||||||||||||||
Deferred tax liabilities | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
Paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Treasury common stock at cost | ||||||||||||||
Shares: 2023 – | ( | ( | ||||||||||||
Accumulated other comprehensive income (loss), net of taxes (AOCI) | ( | ( | ||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Consolidated Statements of Cash Flows | For Years Ended December 31, | |||||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | $ | $ | |||||||||||||||||
Adjustments to net income: | ||||||||||||||||||||
Depreciation | ||||||||||||||||||||
Amortization of acquisition-related intangibles | ||||||||||||||||||||
Amortization of capitalized software | ||||||||||||||||||||
Stock compensation | ||||||||||||||||||||
Gains on sales of assets | ( | ( | ||||||||||||||||||
Deferred taxes | ( | ( | ||||||||||||||||||
Increase (decrease) from changes in: | ||||||||||||||||||||
Accounts receivable | ( | ( | ||||||||||||||||||
Inventories | ( | ( | ||||||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||||||||
Accounts payable and accrued expenses | ( | |||||||||||||||||||
Accrued compensation | ||||||||||||||||||||
Income taxes payable | ( | ( | ||||||||||||||||||
Changes in funded status of retirement plans | ||||||||||||||||||||
Other | ( | ( | ( | |||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | ( | ( | ( | |||||||||||||||||
Proceeds from asset sales | ||||||||||||||||||||
Purchases of short-term investments | ( | ( | ( | |||||||||||||||||
Proceeds from short-term investments | ||||||||||||||||||||
Other | ( | |||||||||||||||||||
Cash flows from investing activities | ( | ( | ( | |||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from issuance of long-term debt | ||||||||||||||||||||
Repayment of debt | ( | ( | ( | |||||||||||||||||
Dividends paid | ( | ( | ( | |||||||||||||||||
Stock repurchases | ( | ( | ( | |||||||||||||||||
Proceeds from common stock transactions | ||||||||||||||||||||
Other | ( | ( | ( | |||||||||||||||||
Cash flows from financing activities | ( | ( | ( | |||||||||||||||||
Net change in cash and cash equivalents | ( | ( | ||||||||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | $ |
Consolidated Statements of Stockholders’ Equity | Common Stock | Paid-in Capital | Retained Earnings | Treasury Common Stock | AOCI | |||||||||||||||||||||||||||
(In millions, except per-share amounts) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||
Dividends declared and paid ($ | — | — | ( | — | — | |||||||||||||||||||||||||||
Common stock issued for stock-based awards | — | — | — | |||||||||||||||||||||||||||||
Stock repurchases | — | — | — | ( | — | |||||||||||||||||||||||||||
Stock compensation | — | — | — | — | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | — | — | ||||||||||||||||||||||||||||
Dividend equivalents on RSUs | — | — | ( | — | — | |||||||||||||||||||||||||||
Balance, December 31, 2021 | ( | ( | ||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||
Dividends declared and paid ($ | — | — | ( | — | — | |||||||||||||||||||||||||||
Common stock issued for stock-based awards | — | — | — | |||||||||||||||||||||||||||||
Stock repurchases | — | — | — | ( | — | |||||||||||||||||||||||||||
Stock compensation | — | — | — | — | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | — | — | ( | |||||||||||||||||||||||||||
Dividend equivalents on RSUs | — | — | ( | — | — | |||||||||||||||||||||||||||
Other | — | ( | — | — | — | |||||||||||||||||||||||||||
Balance, December 31, 2022 | ( | ( | ||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||
Dividends declared and paid ($ | — | — | ( | — | — | |||||||||||||||||||||||||||
Common stock issued for stock-based awards | — | — | — | |||||||||||||||||||||||||||||
Stock repurchases | — | — | — | ( | — | |||||||||||||||||||||||||||
Stock compensation | — | — | — | — | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | — | — | ||||||||||||||||||||||||||||
Dividend equivalents on RSUs | — | — | ( | — | — | |||||||||||||||||||||||||||
Other | — | ( | — | — | — | |||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | ( | $ | ( |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Revenue: | |||||||||||||||||
Analog | $ | $ | $ | ||||||||||||||
Embedded Processing | |||||||||||||||||
Other | |||||||||||||||||
Total revenue | $ | $ | $ | ||||||||||||||
Operating profit: | |||||||||||||||||
Analog | $ | $ | $ | ||||||||||||||
Embedded Processing | |||||||||||||||||
Other | |||||||||||||||||
Total operating profit | $ | $ | $ |
For Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
United States | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||
China | |||||||||||||||||||||||||||||||||||
Rest of Asia | |||||||||||||||||||||||||||||||||||
Europe, Middle East and Africa (a) | |||||||||||||||||||||||||||||||||||
Japan | |||||||||||||||||||||||||||||||||||
Rest of world | |||||||||||||||||||||||||||||||||||
Total revenue | $ | % | $ | % | $ | % |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Property, plant and equipment: | |||||||||||
United States | $ | $ | |||||||||
China | |||||||||||
Rest of Asia | |||||||||||
Europe, Middle East and Africa | |||||||||||
Japan | |||||||||||
Rest of world | |||||||||||
Total property, plant and equipment | $ | $ |
For Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | Shares | EPS | Net Income | Shares | EPS | Net Income | Shares | EPS | |||||||||||||||||||||||||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income allocated to RSUs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income allocated to common stock | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Dilutive effect of stock compensation plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income allocated to RSUs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income allocated to common stock | $ | $ | $ | $ | $ | $ |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
COR | $ | $ | $ | ||||||||||||||
R&D | |||||||||||||||||
SG&A | |||||||||||||||||
Restructuring charges/other | |||||||||||||||||
Total | $ | $ | $ |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Weighted average grant date fair value, per share | $ | $ | $ | ||||||||||||||
Weighted average assumptions used: | |||||||||||||||||
Expected volatility | % | % | % | ||||||||||||||
Expected lives (in years) | |||||||||||||||||
Risk-free interest rates | % | % | % | ||||||||||||||
Expected dividend yields | % | % | % |
Stock Options | RSUs | ||||||||||||||||||||||
Shares | Weighted Average Exercise Price per Share | Shares | Weighted Average Grant Date Fair Value per Share | ||||||||||||||||||||
Outstanding grants, December 31, 2022 | $ | $ | |||||||||||||||||||||
Granted | $ | $ | |||||||||||||||||||||
Stock options exercised/RSUs vested | ( | $ | ( | $ | |||||||||||||||||||
Outstanding grants, December 31, 2023 (a) | $ | $ |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Weighted average grant date fair value per share for RSUs | $ | $ | $ | ||||||||||||||
Total grant date fair value of shares vested for RSUs | $ | $ | $ | ||||||||||||||
Aggregate intrinsic value of options exercised | $ | $ | $ |
Stock Options Outstanding | |||||||||||
Exercise Price Range | Number Outstanding (Shares) | Weighted Average Remaining Contractual Life (Years) | |||||||||
$ |
Options Fully Vested and Expected to Vest (a) | Options Exercisable | ||||||||||
Options outstanding (shares) | |||||||||||
Weighted average remaining contractual life (in years) | |||||||||||
Weighted average exercise price per share | $ | $ | |||||||||
Intrinsic value (billions) | $ | $ |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Balance, January 1 | |||||||||||||||||
Repurchases | |||||||||||||||||
Shares issued | ( | ( | ( | ||||||||||||||
Balance, December 31 |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Proceeds from common stock transactions (a) | $ | $ | $ | ||||||||||||||
Tax benefit realized from stock compensation | |||||||||||||||||
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
U.S. | $ | $ | $ | ||||||||||||||
Non-U.S. | |||||||||||||||||
Total | $ | $ | $ |
For Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||||||||||||||||||||||||||
U.S. federal | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
Non-U.S. | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. state | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | $ |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
U.S. statutory income tax rate | % | % | % | ||||||||||||||
Foreign derived intangible income | ( | ( | ( | ||||||||||||||
R&D tax credit | ( | ( | ( | ||||||||||||||
Stock compensation | ( | ( | ( | ||||||||||||||
Changes in uncertain tax positions | ( | ||||||||||||||||
Other | |||||||||||||||||
Effective tax rate | % | % | % |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Deferred tax assets: | |||||||||||
Capitalized R&D | $ | $ | |||||||||
Accrued expenses | |||||||||||
Deferred loss and tax credit carryforwards | |||||||||||
Stock compensation | |||||||||||
Inventories and related reserves | |||||||||||
Retirement costs for defined benefit and retiree health care | |||||||||||
Other | |||||||||||
Total deferred tax assets, before valuation allowance | |||||||||||
Valuation allowance | ( | ( | |||||||||
Total deferred tax assets, after valuation allowance | |||||||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment | ( | ( | |||||||||
International earnings | ( | ( | |||||||||
Acquisition-related intangibles and fair-value adjustments | ( | ( | |||||||||
Other | ( | ( | |||||||||
Total deferred tax liabilities | ( | ( | |||||||||
Net deferred tax asset | $ | $ |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Deferred tax assets | $ | $ | |||||||||
Deferred tax liabilities | ( | ( | |||||||||
Net deferred tax asset | $ | $ |
2023 | 2022 | 2021 | |||||||||||||||
Balance, January 1 | $ | $ | $ | ||||||||||||||
Additions based on tax positions related to the current year | |||||||||||||||||
Additions for tax positions of prior years | |||||||||||||||||
Reductions for tax positions of prior years | ( | ( | |||||||||||||||
Settlements with tax authorities | ( | ||||||||||||||||
Expiration of the statute of limitations for assessing taxes | |||||||||||||||||
Balance, December 31 | $ | $ | $ | ||||||||||||||
Interest expense recognized in the year ended December 31 | $ | ( | $ | ( | $ | ( | |||||||||||
Interest payable as of December 31 | $ | $ | $ |
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||||||||||||||||||||||
Measured at fair value: | |||||||||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Corporate obligations | |||||||||||||||||||||||||||||||||||
U.S. government and agency securities | |||||||||||||||||||||||||||||||||||
Non-U.S. government and agency securities | |||||||||||||||||||||||||||||||||||
Mutual funds | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
Other measurement basis: | |||||||||||||||||||||||||||||||||||
Equity-method investments | |||||||||||||||||||||||||||||||||||
Nonmarketable investments | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
Cash on hand | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Fair Value | |||||
One year or less | $ | ||||
One to two years |
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Corporate obligations | |||||||||||||||||||||||||||||||||||
U.S. government and agency securities | |||||||||||||||||||||||||||||||||||
Non-U.S. government and agency securities | |||||||||||||||||||||||||||||||||||
Mutual funds | |||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deferred compensation | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | $ |
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized net actuarial losses (gains) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs (credits) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total, including other postretirement losses (gains) | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ |
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | |||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
Change in plan benefit obligation | |||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year: | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Service cost | |||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Participant contributions | |||||||||||||||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Settlements | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Curtailments | ( | ||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Effects of exchange rate changes | ( | ( | |||||||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year: | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Actual return on plan assets | ( | ( | ( | ||||||||||||||||||||||||||||||||
Employer contributions (qualified plans) | |||||||||||||||||||||||||||||||||||
Employer contributions (non-qualified plans) | |||||||||||||||||||||||||||||||||||
Participant contributions | |||||||||||||||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Settlements | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Effects of exchange rate changes | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Funded status at end of year | $ | ( | $ | ( | $ | $ | $ | $ |
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | Total | ||||||||||||||||||||
2023 | |||||||||||||||||||||||
Overfunded retirement plans | $ | $ | $ | $ | |||||||||||||||||||
Accrued expenses and other liabilities & other long-term liabilities | ( | ( | ( | ||||||||||||||||||||
Underfunded retirement plans | ( | ( | ( | ( | |||||||||||||||||||
Funded status at end of 2023 | $ | ( | $ | $ | $ | ||||||||||||||||||
2022 | |||||||||||||||||||||||
Overfunded retirement plans | $ | $ | $ | $ | |||||||||||||||||||
Accrued expenses and other liabilities & other long-term liabilities | ( | ( | ( | ||||||||||||||||||||
Underfunded retirement plans | ( | ( | ( | ( | |||||||||||||||||||
Funded status at end of 2022 | $ | ( | $ | $ | $ |
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | Total | ||||||||||||||||||||||||||||||||||||||
Net Actuarial Loss | Net Actuarial Gain | Prior Service Cost | Net Actuarial Loss | Prior Service Cost | Net Actuarial Loss | Prior Service Cost | |||||||||||||||||||||||||||||||||||
AOCI balance, net of taxes, December 31, 2022 | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Changes in AOCI by category: | |||||||||||||||||||||||||||||||||||||||||
Adjustments | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Recognized within net income | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Tax effect | |||||||||||||||||||||||||||||||||||||||||
Total change to AOCI | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
AOCI balance, net of taxes, December 31, 2023 | $ | $ | ( | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Other (a) | Total | ||||||||||||||||||||
Assets of U.S. defined benefit plan: | |||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Assets of U.S. retiree health care plan: | |||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Assets of non-U.S. defined benefit plans: | |||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Other (a) | Total | ||||||||||||||||||||
Assets of U.S. defined benefit plan: | |||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Assets of U.S. retiree health care plan: | |||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Assets of non-U.S. defined benefit plans: | |||||||||||||||||||||||
Fixed income securities and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | |||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations: | |||||||||||||||||||||||||||||||||||
Discount rate | |||||||||||||||||||||||||||||||||||
Long-term pay progression | n/a | n/a | |||||||||||||||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost: | |||||||||||||||||||||||||||||||||||
Discount rate | |||||||||||||||||||||||||||||||||||
Long-term rate of return on plan assets | |||||||||||||||||||||||||||||||||||
Long-term pay progression | n/a | n/a |
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | |||||||||||||||
Fixed income securities and cash equivalents | |||||||||||||||||
Equity securities |
U.S. Defined Benefit | U.S. Retiree Health Care | Non-U.S. Defined Benefit | |||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
Fixed income securities and cash equivalents | |||||||||||||||||||||||||||||||||||
Equity securities |
2024 | 2025 | 2026 | 2027 | 2028 | 2029 – 2033 | ||||||||||||||||||||||||||||||
U.S. Defined Benefit | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Retiree Health Care | |||||||||||||||||||||||||||||||||||
Non-U.S. Defined Benefit |
2023 | 2022 | ||||||||||
Assumed health care cost trend rate for next year | |||||||||||
Ultimate trend rate | |||||||||||
Year in which ultimate trend rate is reached |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Notes due 2023 at | $ | $ | |||||||||
Notes due 2024 at | |||||||||||
Notes due 2024 at | |||||||||||
Notes due 2025 at | |||||||||||
Notes due 2026 at | |||||||||||
Notes due 2027 at | |||||||||||
Notes due 2028 at | |||||||||||
Notes due 2029 at | |||||||||||
Notes due 2030 at | |||||||||||
Notes due 2031 at | |||||||||||
Notes due 2032 at | |||||||||||
Notes due 2033 at | |||||||||||
Notes due 2039 at | |||||||||||
Notes due 2048 at | |||||||||||
Notes due 2051 at | |||||||||||
Notes due 2052 at | |||||||||||
Notes due 2053 at | |||||||||||
Notes due 2063 at | |||||||||||
Total debt | |||||||||||
Net unamortized discounts, premiums and issuance costs | ( | ( | |||||||||
Total debt, including net unamortized discounts, premiums and issuance costs | |||||||||||
Current portion of long-term debt | ( | ( | |||||||||
Long-term debt | $ | $ |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
$ | $ | ||||||||||
$ | $ | ||||||||||
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Lease cost related to lease liabilities | $ | $ | $ | ||||||||||||||
Variable lease cost | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows for lease cost | $ | $ | $ | ||||||||||||||
Lease assets obtained in exchange for new lease liabilities | $ | $ | $ |
2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Lease payments | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Imputed lease interest | ( | ||||||||||||||||||||||||||||||||||||||||
Total lease liabilities | $ |
2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Purchase commitments | $ | $ | $ | $ | $ | $ | $ |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Integration charges (a) | $ | $ | $ | ||||||||||||||
Gains on sales of assets (b) | ( | ||||||||||||||||
Restructuring charges/other | $ | $ | $ |
For Years Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Other income (a) | $ | $ | $ | ||||||||||||||
Other expense (b) | ( | ( | ( | ||||||||||||||
Total | $ | $ | $ |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
U.S. CHIPS and Science Act investment tax credit | $ | $ | |||||||||
Other | |||||||||||
Total | $ | $ |
Depreciable Lives (Years) | December 31, | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
Land | n/a | $ | $ | ||||||||||||||
Buildings and improvements | |||||||||||||||||
Machinery and equipment | |||||||||||||||||
Total | $ | $ |
Goodwill | |||||
Analog | $ | ||||
Embedded Processing | |||||
Other | |||||
Total | $ |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
U.S. CHIPS and Science Act investment tax credit | $ | $ | |||||||||
Other | |||||||||||
Total | $ | $ |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Accrued capital-related expenditures | $ | $ | |||||||||
Other | |||||||||||
Total | $ | $ |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Postretirement benefit plans: | |||||||||||
Net actuarial loss | $ | ( | $ | ( | |||||||
Prior service cost | ( | ||||||||||
Unrealized gains (losses) on available-for-sale investments | ( | ||||||||||
Cash flow hedge derivative instruments | ( | ||||||||||
Total | $ | ( | $ | ( |
For Years Ended December 31, | Impact to Related Statement of Income Lines | |||||||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||||||||
Net actuarial losses of defined benefit plans: | ||||||||||||||||||||||||||
Recognized net actuarial loss and settlement losses (a) | $ | $ | $ | Decrease to OI&E | ||||||||||||||||||||||
Tax effect | ( | ( | ( | Decrease to provision for income taxes | ||||||||||||||||||||||
Recognized within net income, net of taxes | $ | $ | $ | Decrease to net income | ||||||||||||||||||||||
Prior service cost (credit) of defined benefit plans: | ||||||||||||||||||||||||||
Amortization of prior service cost (credit) (a) | $ | $ | ( | $ | ( | Decrease (increase) to OI&E | ||||||||||||||||||||
Tax effect | (Decrease) increase to provision for income taxes | |||||||||||||||||||||||||
Recognized within net income, net of taxes | $ | $ | ( | $ | ( | Decrease (increase) to net income | ||||||||||||||||||||
Description of the matter | As discussed in Note 4 to the consolidated financial statements, the Company operates in the United States and multiple international tax jurisdictions, and its income tax returns are subject to examination by tax authorities in those jurisdictions who may challenge any tax position on these returns. Uncertainty in a tax position may arise because tax laws are subject to interpretation. The Company uses significant judgment to (1) determine whether, based on the technical merits, a tax position is more likely than not to be sustained and (2) measure the amount of tax benefit that qualifies for recognition. Auditing management’s estimate of the amount of tax benefit that qualifies for recognition involved auditor judgment because management’s estimate is complex, requires a high degree of judgment and is based on interpretations of tax laws and legal rulings. | ||||
How we addressed the matter in our audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s accounting process for uncertain tax positions. For example, this included controls over the Company’s assessment of the technical merits of tax positions and management’s process to measure the benefit of those tax positions. Among other procedures performed, we involved our tax professionals to assess the technical merits of the Company’s tax positions. This included assessing the Company’s correspondence with the relevant tax authorities and evaluating income tax opinions or other third-party advice obtained by the Company. We also evaluated the appropriateness of the Company’s accounting for its tax positions taking into consideration relevant international and local income tax laws and legal rulings. We analyzed the Company’s assumptions and data used to determine the amount of tax benefit to recognize and tested the accuracy of the calculations. We also evaluated the adequacy of the Company’s financial statement disclosures in Note 4 to the consolidated financial statements related to these tax matters. |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1) | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (2) | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (1)) (3) | ||||||||||||||||||||||||||
Equity compensation plans approved by security holders | 31,257,621 | (a) | $ | 119.76 | (b) | 58,452,628 | (c) | ||||||||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||||||||||||||
Total | 31,257,621 | (d) | $ | 119.76 | 58,452,628 |
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Designation of Exhibit | Description of Exhibit | Form | File Number | Date of Filing | Exhibit Number | |||||||||||||||
3(a) | 10-K | 001-3761 | February 24, 2015 | 3(a) | ||||||||||||||||
3(b) | 8-K | 001-3761 | January 26, 2022 | 3 | ||||||||||||||||
4(a) | 8-K | 001-3761 | May 23, 2011 | 4.2 | ||||||||||||||||
4(b) | 8-K | 001-3761 | May 4, 2017 | 4.1 | ||||||||||||||||
4(c) | 8-K | 001-3761 | November 3, 2017 | 4.1 | ||||||||||||||||
4(d) | 8-K | 001-3761 | May 7, 2018 | 4.1 | ||||||||||||||||
4(e) | 8-K | 001-3761 | June 8, 2018 | 4.1 | ||||||||||||||||
4(f) | 8-K | 001-3761 | March 11, 2019 | 4.1 | ||||||||||||||||
4(g) | 8-K | 001-3761 | September 4, 2019 | 4.1 | ||||||||||||||||
4(h) | 8-K | 001-3761 | March 12, 2020 | 4.1 | ||||||||||||||||
4(i) | 8-K | 001-3761 | May 4, 2020 | 4.1 | ||||||||||||||||
4(j) | 8-K | 001-3761 | September 15, 2021 | 4.1 | ||||||||||||||||
4(k) | 8-K | 001-3761 | August 16, 2022 | 4.1 | ||||||||||||||||
4(l) | 8-K | 001-3761 | November 18, 2022 | 4.1 | ||||||||||||||||
4(m) | 8-K | 001-3761 | March 14, 2023 | 4.1 | ||||||||||||||||
4(n) | 8-K | 001-3761 | May 18, 2023 | 4.1 | ||||||||||||||||
4(o) | 10-K | 001-3761 | February 20, 2020 | 4(l) | ||||||||||||||||
10(a) | 10-K | 001-3761 | February 24, 2016 | 10(a) | ||||||||||||||||
10(b) | 10-K | 001-3761 | February 24, 2016 | 10(b) | ||||||||||||||||
10(c) | 10-K | 001-3761 | February 24, 2016 | 10(c) | ||||||||||||||||
10(d) | 10-K | 001-3761 | February 24, 2012 | 10(c) | ||||||||||||||||
10(e) | 10-K | 001-3761 | February 24, 2015 | 10(j) | ||||||||||||||||
10(f) | 10-K | 001-3761 | February 23, 2017 | 10(k) | ||||||||||||||||
10(g) | 10-K | 001-3761 | February 23, 2017 | 10(l) | ||||||||||||||||
10(h) | DEF 14A | 001-3761 | March 9, 2016 | Appendix B |
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Designation of Exhibit | Description of Exhibit | Form | File Number | Date of Filing | Exhibit Number | |||||||||||||||
10(i) | 10-K | 001-3761 | February 23, 2017 | 10(n) | ||||||||||||||||
10(j) | 10-K | 001-3761 | February 20, 2020 | 10(k) | ||||||||||||||||
10(k) | X | |||||||||||||||||||
10(l) | X | |||||||||||||||||||
21 | X | |||||||||||||||||||
23 | X | |||||||||||||||||||
31(a) | X | |||||||||||||||||||
31(b) | X | |||||||||||||||||||
32(a) | X | |||||||||||||||||||
32(b) | X | |||||||||||||||||||
97 | X | |||||||||||||||||||
101.ins | Instance Document | X | ||||||||||||||||||
101.sch | XBRL Taxonomy Schema | X | ||||||||||||||||||
101.cal | XBRL Taxonomy Calculation Linkbase | X | ||||||||||||||||||
101.def | XBRL Taxonomy Definitions Document | X | ||||||||||||||||||
101.lab | XBRL Taxonomy Labels Linkbase | X | ||||||||||||||||||
101.pre | XBRL Taxonomy Presentation Linkbase | X | ||||||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | X |
TEXAS INSTRUMENTS INCORPORATED | |||||||||||
By: | /s/ | Rafael R. Lizardi | |||||||||
Rafael R. Lizardi, Senior Vice President and Chief Financial Officer | |||||||||||
/s/ Mark A. Blinn | /s/ Todd M. Bluedorn | |||||||
Mark A. Blinn, Director | Todd M. Bluedorn, Director | |||||||
/s/ Janet F. Clark | /s/ Carrie S. Cox | |||||||
Janet F. Clark, Director | Carrie S. Cox, Director | |||||||
/s/ Martin S. Craighead | /s/ Curtis C. Farmer | |||||||
Martin S. Craighead, Director | Curtis C. Farmer, Director | |||||||
/s/ Jean M. Hobby | /s/ Ronald Kirk | |||||||
Jean M. Hobby, Director | Ronald Kirk, Director | |||||||
/s/ Pamela H. Patsley | /s/ Robert E. Sanchez | |||||||
Pamela H. Patsley, Director | Robert E. Sanchez, Director | |||||||
/s/ Richard K. Templeton | /s/ Haviv Ilan | |||||||
Richard K. Templeton, Director and Chairman of the Board | Haviv Ilan, Director, President and Chief Executive Officer | |||||||
/s/ Rafael R. Lizardi | /s/ Julie C. Knecht | |||||||
Rafael R. Lizardi, Senior Vice President and Chief Financial Officer | Julie C. Knecht, Vice President and Chief Accounting Officer |
Subsidiary and Name Under Which Business is Done | Where Organized | ||||
Algorex Inc. | California | ||||
ASIC II Limited | Hawaii | ||||
Benchmarq Microelectronics Corporation of South Korea | Delaware | ||||
Burr-Brown International Holding Corporation | Delaware | ||||
Energy Recommerce Inc. | California | ||||
innoCOMM wireless | California | ||||
Integrated Circuit Designs, Inc. | Maryland | ||||
Mediamatics, Inc. | California | ||||
National Acquisition Sub, Inc. | Delaware | ||||
National Semiconductor (Maine), Inc. | Delaware | ||||
National Semiconductor Corporation | Delaware | ||||
National Semiconductor International B.V. | Netherlands | ||||
National Semiconductor International, Inc. | Delaware | ||||
National Semiconductor Labuan Ltd. | Malaysia | ||||
PT Texas Instruments Indonesia | Indonesia | ||||
Telogy Networks, Inc. | Delaware | ||||
Texas Instruments (India) Private Limited | India | ||||
Texas Instruments (Philippines) LLC | Delaware | ||||
Texas Instruments (Shanghai) Co., Ltd. | PRC | ||||
Texas Instruments (U.K.) Holdings Limited | United Kingdom | ||||
Texas Instruments (U.K.) Limited | United Kingdom | ||||
Texas Instruments Asia Limited | Delaware | ||||
Texas Instruments Austin Incorporated | Delaware | ||||
Texas Instruments Australia Pty Limited | Australia | ||||
Texas Instruments Business Expansion GmbH | Germany | ||||
Texas Instruments Canada Limited | Canada | ||||
Texas Instruments China Sales Limited | Hong Kong | ||||
Texas Instruments China Trading Limited | Hong Kong | ||||
Texas Instruments CZ, s.r.o. | Czech Republic | ||||
Texas Instruments de Mexico, S. de R.L. de C.V. | Mexico | ||||
Texas Instruments Denmark ApS | Denmark | ||||
Texas Instruments Deutschland GmbH | Germany | ||||
Texas Instruments Education Technology GmbH | Germany | ||||
Texas Instruments Electronics Malaysia Sdn. Bhd. | Malaysia | ||||
Texas Instruments EMEA Sales GmbH | Germany | ||||
Texas Instruments España, S.A. Unipersonal | Spain | ||||
Texas Instruments Finland Oy | Finland |
Subsidiary and Name Under Which Business is Done | Where Organized | ||||
Texas Instruments France SAS | France | ||||
Texas Instruments Gesellschaft m.b.H. | Austria | ||||
Texas Instruments Global Investments LLC | Delaware | ||||
Texas Instruments Holland B.V. | Netherlands | ||||
Texas Instruments Hong Kong Limited | Hong Kong | ||||
Texas Instruments Hungary Korlatolt Felelossegu Tarsasag | Hungary | ||||
Texas Instruments International (U.S.A.) Inc. | Delaware | ||||
Texas Instruments International Capital Corporation | Delaware | ||||
Texas Instruments International Trade Corporation | Delaware | ||||
Texas Instruments Ireland Trading Limited | Ireland | ||||
Texas Instruments Israel Ltd. | Israel | ||||
Texas Instruments Italia S.r.l. | Italy | ||||
Texas Instruments Japan Limited | Japan | ||||
Texas Instruments Korea Limited | Korea | ||||
Texas Instruments Lehigh Valley Incorporated | Delaware | ||||
Texas Instruments Limited | United Kingdom | ||||
Texas Instruments Logistics Malaysia Sdn. Bhd. | Malaysia | ||||
Texas Instruments Low Power Wireless San Diego LLC | Delaware | ||||
Texas Instruments Malaysia Sdn. Bhd. | Malaysia | ||||
Texas Instruments Management GmbH & Co. KG | Germany | ||||
Texas Instruments Northern Virginia Incorporated | Delaware | ||||
Texas Instruments Norway AS | Norway | ||||
Texas Instruments Palo Alto Incorporated | California | ||||
Texas Instruments Richardson LLC | Delaware | ||||
Texas Instruments Romania S.R.L. | Romania | ||||
Texas Instruments Russia Sales LLC | Russian Federation | ||||
Texas Instruments Santa Rosa Incorporated | California | ||||
Texas Instruments Semiconductor Manufacturing (Chengdu) Co., Ltd. | PRC | ||||
Texas Instruments Semiconductor Technologies (Shanghai) Co., Ltd. | PRC | ||||
Texas Instruments Semiconductor Trading Limited Company | Turkey | ||||
Texas Instruments Semicondutores e Tecnologias Ltda. | Brazil | ||||
Texas Instruments Singapore (Pte) Limited | Singapore | ||||
Texas Instruments Southeast Asia Pte. Ltd. | Singapore | ||||
Texas Instruments Sunnyvale Incorporated | Delaware | ||||
Texas Instruments Sweden AB | Sweden | ||||
Texas Instruments Taiwan Limited | Taiwan | ||||
Texas Instruments Tucson Corporation | Delaware | ||||
Texas Instruments Vietnam LLC | Socialist Republic of Vietnam | ||||
TI (Philippines), Inc. | Philippines | ||||
TI Europe B.V. | Netherlands | ||||
Unitrode Corporation | Maryland | ||||
Unitrode-Maine | Maine |
/S/ ERNST & YOUNG LLP | ||
ERNST & YOUNG LLP |
/s/ Haviv Ilan | |||||
Haviv Ilan President and Chief Executive Officer |
/s/ Rafael R. Lizardi | |||||
Rafael R. Lizardi Senior Vice President and Chief Financial Officer |
/s/ Haviv Ilan | |||||
Haviv Ilan President and Chief Executive Officer |
/s/ Rafael R. Lizardi | |||||
Rafael R. Lizardi Senior Vice President and Chief Financial Officer |
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Auditor [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Dallas, Texas |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,510 | $ 8,749 | $ 7,769 |
Net actuarial losses of defined benefit plans: | |||
Adjustments, net of tax effect of ($9), $48 and ($56) | 27 | (155) | 175 |
Recognized within net income, net of tax effect of ($5), ($17) and ($8) | 15 | 61 | 29 |
Prior service cost (credit) of defined benefit plans: | |||
Recognized within net income, net of tax effect of $0, $0 and $0 | 1 | (1) | (1) |
Derivative instruments: | |||
Change in fair value, net of tax effect of $0, $0 and $0 | 1 | 1 | 0 |
Available-for-sale investments: | |||
Unrealized gains (losses), net of tax effect of ($1), $1 and $0 | 5 | (3) | 0 |
Other comprehensive income (loss), net of taxes | 49 | (97) | 203 |
Total comprehensive income | $ 6,559 | $ 8,652 | $ 7,972 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Comprehensive Income | |||
Net actuarial losses of defined benefit plans adjustment, tax effect | $ (9) | $ 48 | $ (56) |
Net actuarial losses of defined benefit plans recognized within net income, tax effect | (5) | (17) | (8) |
Prior service cost of defined benefit plans recognized within net income, tax effect | 0 | 0 | 0 |
Derivative instruments change in fair value, tax effect | 0 | 0 | 0 |
Available-for-sale investments unrealized losses, tax effect | $ (1) | $ 1 | $ 0 |
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Current assets: | ||
Allowance for doubtful accounts receivable, current | $ (16) | $ (13) |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 10 | 10 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 2,400 | 2,400 |
Common stock, shares issued (in shares) | 1,741 | 1,741 |
Treasury stock (in shares) | 832 | 835 |
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions |
Total |
Common Stock |
Paid-in Capital |
Retained Earnings |
Treasury Common Stock |
AOCI |
---|---|---|---|---|---|---|
Balance, beginning balance at Dec. 31, 2020 | $ 1,741 | $ 2,333 | $ 42,051 | $ (36,578) | $ (360) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 7,769 | 7,769 | ||||
Dividends declared and paid | (3,886) | |||||
Common stock issued for stock-based awards | 67 | 310 | ||||
Stock repurchases | (532) | |||||
Stock compensation | 230 | |||||
Other comprehensive income (loss), net of taxes | 203 | 203 | ||||
Dividend equivalents on RSUs | (15) | |||||
Balance, ending balance at Dec. 31, 2021 | 1,741 | 2,630 | 45,919 | (36,800) | (157) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 8,749 | 8,749 | ||||
Dividends declared and paid | (4,297) | |||||
Common stock issued for stock-based awards | 35 | 206 | ||||
Stock repurchases | (3,620) | |||||
Stock compensation | 289 | |||||
Other comprehensive income (loss), net of taxes | (97) | (97) | ||||
Dividend equivalents on RSUs | (18) | |||||
Other | (3) | |||||
Balance, ending balance at Dec. 31, 2022 | 14,577 | 1,741 | 2,951 | 50,353 | (40,214) | (254) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,510 | 6,510 | ||||
Dividends declared and paid | (4,557) | |||||
Common stock issued for stock-based awards | 50 | 213 | ||||
Stock repurchases | (283) | |||||
Stock compensation | 362 | |||||
Other comprehensive income (loss), net of taxes | 49 | 49 | ||||
Dividend equivalents on RSUs | (23) | |||||
Other | (1) | |||||
Balance, ending balance at Dec. 31, 2023 | $ 16,897 | $ 1,741 | $ 3,362 | $ 52,283 | $ (40,284) | $ (205) |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per common share (in dollars per share) | $ 5.02 | $ 4.69 | $ 4.21 |
Cash dividends paid per common share (in dollars per share) | $ 5.02 | $ 4.69 | $ 4.21 |
Description of Business, Including Segment and Geographic Area Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of business, including segment and geographic area information | Description of business, including segment and geographic area information We design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world. We have two reportable segments, Analog and Embedded Processing, each of which represents groups of similar products that are combined on the basis of similar design and development requirements, product characteristics, manufacturing processes and distribution channels. Our segments also reflect how management allocates resources and measures results. •Analog semiconductors change real-world signals, such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors. Analog semiconductors are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy, whether the equipment is plugged into a wall or using a battery. Our Analog segment consists of two major product lines: Power and Signal Chain. •Embedded Processing products are the digital “brains” of many types of electronic equipment. They are designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application. We report the results of our remaining business activities in Other. Other includes operating segments that do not meet the quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments. Other includes DLP® products, calculators and custom ASIC products. In Other, we also include items that are not used in evaluating the results of or in allocating resources to our segments. Examples of these items include acquisition, integration and restructuring charges (see Note 11); and certain corporate-level items, such as litigation expenses, environmental costs, insurance settlements, and gains and losses from other activities, including asset dispositions. We allocate the remainder of our expenses associated with corporate activities to our operating segments based on specific methodologies, such as percentage of operating expenses or headcount. Our centralized manufacturing and support organizations, such as facilities, procurement and logistics, provide support to our operating segments, including those in Other. Costs incurred by these organizations, including depreciation, are charged to the segments on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the segments’ results and, therefore, is not provided. With the exception of goodwill, we do not identify or allocate assets by operating segment, nor does the chief operating decision maker evaluate operating segments using discrete asset information. We have no material intersegment revenue. The accounting policies of the segments are consistent with those described in the summary of significant accounting policies and practices. Segment information
Geographic area information Our estimate for revenue based on the geographic location of our end customers’ headquarters, which represents where critical decisions are made, is as follows:
(a)Revenue from end customers headquartered in Germany was 13%, 11% and 9% of total revenue in 2023, 2022 and 2021, respectively. Property, plant and equipment by geographic area, based on physical location:
Major customer No end customer accounted for 10% or more of revenue in 2023, 2022 or 2021.
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Basis of Presentation and Significant Accounting Policies and Practices |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of presentation and significant accounting policies and practices | Basis of presentation and significant accounting policies and practices Basis of presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The basis of these financial statements is comparable for all periods presented herein. The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All dollar and share amounts in the financial statements and tables in these notes, except per-share amounts, are presented in millions unless otherwise indicated. We have reclassified certain amounts in the prior periods’ financial statements to conform to the 2023 presentation. The preparation of financial statements requires the use of estimates from which final results may vary. Significant accounting policies and practices Revenue recognition We generate revenue primarily from the sale of semiconductor products, either directly to a customer or to a distributor, and recognize revenue when control is transferred. Control is considered transferred when title and risk of loss pass, when the customer becomes obligated to pay and, where required, when the customer has accepted the products. This transfer generally occurs at a point in time upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order. Payment for sales to customers and distributors is generally due on our standard commercial terms. For sales to distributors, payment is not contingent upon resale of the products. Revenue from sales of our products that are subject to inventory consignment agreements is recognized at a point in time, when the customer or distributor pulls product from consignment inventory that we store at designated locations. Delivery and transfer of control occur at that point, when title and risk of loss transfers and the customer or distributor becomes obligated to pay for the products pulled from inventory. Until the products are pulled for use or sale by the customer or distributor, we retain control over the products’ disposition, including the right to pull back or relocate the products. The revenue recognized is adjusted based on allowances, which are prepared on a portfolio basis using a most likely amount methodology based on analysis of historical data and contractual terms. These allowances, which are not material, generally include adjustments for pricing arrangements, product returns and incentives. We recognize shipping fees received from customers, if any, in revenue. We include the related shipping and handling costs in cost of revenue. The majority of our customers pay these fees directly to third parties. Advertising costs We expense advertising and other promotional costs as incurred. This expense was $28 million, $27 million and $27 million in 2023, 2022 and 2021, respectively. Income taxes We account for income taxes using an asset and liability approach. We record the amount of taxes payable or refundable for the current year and the deferred tax assets and liabilities for future tax consequences related to events that have been recognized in the financial statements or tax returns. We record a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. Other assessed taxes Some transactions require us to collect taxes such as sales, value-added and excise taxes from our customers. These transactions are presented in our Consolidated Statements of Income on a net (excluded from revenue) basis. Leases We determine if an arrangement is a lease at inception. Leases are included in other long-term assets, accrued expenses and other liabilities, and other long-term liabilities on our Consolidated Balance Sheets. Lease assets represent our right to use underlying assets for the lease term, and lease liabilities represent our obligations to make lease payments over the lease term. On the commencement date, leases are evaluated for classification, and assets and liabilities are recognized based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments. Operating lease expense is generally recognized on a straight-line basis over the lease term. Our lease values include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. We have agreements with lease and non-lease components, which are accounted for as a single lease component. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Earnings per share (EPS) We use the two-class method for calculating EPS because the restricted stock units (RSUs) we grant are participating securities containing nonforfeitable rights to receive dividend equivalents. Under the two-class method, a portion of net income is allocated to RSUs and excluded from the calculation of income allocated to common stock. Computation and reconciliation of earnings per common share are as follows:
Potentially dilutive securities representing 10 million, 5 million and 3 million shares of common stock that were outstanding in 2023, 2022 and 2021, respectively, were excluded from the computation of diluted earnings per common share during these periods because their effect would have been anti-dilutive. Investments We present investments on our Consolidated Balance Sheets as cash equivalents, short-term investments or other long-term assets. See Note 6 for additional information. •Cash equivalents and short-term investments – The primary objectives of our cash equivalent and short-term investment activities are to preserve capital and maintain liquidity while generating appropriate returns. We consider investments in available-for-sale debt securities with maturities of 90 days or less from the date of our investment to be cash equivalents. We consider investments in available-for-sale debt securities with maturities beyond 90 days from the date of our investment as being available for use in current operations and include them in short-term investments. •Other long-term assets – Long-term investments, which are included within other long-term assets on our Consolidated Balance Sheets, consist of mutual funds, venture capital funds and nonmarketable securities. Inventories Inventories are stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates cost on a first-in, first-out basis. Standard cost is based on the normal utilization of installed factory capacity. Cost associated with underutilization of capacity is expensed as incurred. Inventory held at consignment locations is included in our finished goods inventory. We review inventory quarterly for salability and obsolescence. A statistical allowance is provided for inventory considered unlikely to be sold. The statistical allowance is based on an analysis of historical disposal activity, historical customer shipments, as well as estimated future sales. A specific allowance for each material type will be carried if there is a significant event not captured by the statistical allowance. We write off inventory in the period in which disposal occurs. Government incentives Incentives provided by government entities are recognized when we have reasonable assurance that we will comply with the conditions of the incentive, if any, and the incentive will be received. Incentives, which include non-income tax incentives, related to the acquisition or construction of fixed assets are recognized as a reduction in the carrying amounts of the related assets and reduce depreciation expense over the useful lives of the assets. Incentives for specific operating activities are offset against the related expense in the period the expense is incurred. In August 2022, the U.S. government enacted the U.S. CHIPS and Science Act, which provides funding for manufacturing grants and research investments, and it establishes a 25% investment tax credit for certain investments in U.S. semiconductor manufacturing. As of December 31, 2023, we have recognized $1.36 billion of receivables with a corresponding reduction to the carrying amounts of the qualifying manufacturing assets. The receivables are comprised of $497 million in prepaid expenses and other current assets and $859 million in . See Note 11 for additional information. In 2023, benefited by $45 million from the investment tax credit, recognized as a reduction of depreciation expense. Property, plant and equipment; acquisition-related intangibles; and other capitalized costs Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Our cost basis includes certain assets acquired in business combinations that were initially recorded at fair value as of the date of acquisition. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. We amortize acquisition-related intangibles on a straight-line basis over the estimated economic life of the assets. Capitalized software licenses are generally amortized on a straight-line basis over the term of the license. Fully depreciated or amortized assets are written off against accumulated depreciation or amortization. Impairments of long-lived assets We regularly review whether facts or circumstances exist that indicate the carrying values of property, plant and equipment or other long-lived assets, including intangible assets, are impaired. We assess the recoverability of assets by comparing the projected undiscounted net cash flows associated with those assets to their respective carrying amounts. Any impairment charge is based on the excess of the carrying amount over the fair value of those assets. Fair value is determined by available market valuations, if applicable, or by discounted cash flows. Goodwill Goodwill is reviewed for impairment annually in the fourth quarter or more frequently if certain impairment indicators arise. We perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, or if we elect not to use a qualitative assessment, then we perform a quantitative goodwill impairment test. See Note 11 for additional information. Foreign currency The functional currency for our non-U.S. subsidiaries is the U.S. dollar. Accounts recorded in currencies other than the U.S. dollar are remeasured into the functional currency. Current assets (except inventories), deferred taxes, current liabilities and long-term liabilities are remeasured at exchange rates in effect at the end of each reporting period. Property, plant and equipment with associated depreciation and inventories are valued at historical exchange rates. Revenue and expense accounts other than depreciation for each month are calculated at the appropriate daily rate of exchange. Currency exchange gains and losses from remeasurement are credited or charged to OI&E. Derivatives and hedging We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. We are exposed to variability in compensation charges related to certain deferred compensation obligations to employees. We use total return swaps to economically hedge this exposure and offset the related compensation expense, recognizing changes in the value of the swaps and the related deferred compensation liabilities in SG&A. In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions were not material. We do not use derivatives for speculative or trading purposes.
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Stock Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | Stock compensation We have stock options outstanding to participants under long-term incentive plans. The option price per share may not be less than the fair market value of our common stock on the date of the grant. The options have a 10-year term, generally vest ratably over four years and continue to vest after the option recipient retires. We also have RSUs outstanding to participants under long-term incentive plans. Each RSU represents the right to receive one share of TI common stock, issued on the vesting date, which is generally four years after the date of grant. RSUs continue to vest after the recipient retires. Holders of RSUs receive an annual cash payment equivalent to the dividends paid on our common stock. The fair value per share of RSUs is generally determined based on the closing price of our common stock on the date of grant. We have options and RSUs outstanding to non-employee directors under director compensation plans. The plans generally provide for annual grants of stock options and RSUs, a one-time grant of RSUs to each new non-employee director and the issuance of TI common stock upon the distribution of stock units credited to director deferred compensation accounts. We also have an employee stock purchase plan (ESPP) under which options are offered to all eligible employees in amounts based on a percentage of the employee’s compensation, subject to a cap. Under the plan, the option price per share is 85% of the fair market value on the exercise date. As of December 31, 2023, 31 million shares remain available for future issuance under this plan. Total stock compensation expense recognized is as follows:
These amounts include expenses related to non-qualified stock options, RSUs and stock options offered under our ESPP and are net of estimated forfeitures. We recognize compensation expense for non-qualified stock options and RSUs on a straight-line basis over the minimum service period required for vesting of the award, adjusting for estimated forfeitures based on historical activity. Awards issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. Options issued under our ESPP are expensed over a three-month period. As of December 31, 2023, total future compensation related to equity awards not yet recognized in our Consolidated Statements of Income was $490 million, which we expect to recognize over a weighted average period of 1.8 years. Fair value methods and assumptions We account for all awards granted under our various stock compensation plans at fair value. We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions:
We use market-based measures of implied volatility to determine expected volatility on all options granted. We determine expected lives of options based on the historical option exercise experience of our option holders using a rolling 10-year average. Expected dividend yields are based on the annualized approved quarterly dividend rate and the current market price of our common stock at the time of grant. No assumption for a future dividend rate change is included unless there is an approved plan to change the dividend in the near term. Long-term incentive and director compensation plans Stock option and RSU transactions under our long-term incentive and director compensation plans are as follows:
(a)Forfeited and expired shares were not material.
As of December 31, 2023, 27 million shares remain available for future issuance under these plans. Summarized information about stock options outstanding as of December 31, 2023, is as follows:
(a)Includes effects of expected forfeitures. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1.34 billion. Effect on shares outstanding and treasury shares Treasury shares were acquired in connection with the board-authorized stock repurchase program. As of December 31, 2023, $21.20 billion of stock repurchase authorizations remain, and no expiration date has been specified. Our practice is to issue shares of common stock from treasury shares upon exercise of stock options, distribution of director deferred compensation and vesting of RSUs. The following table reflects the changes in our treasury shares:
The effects on cash flows are as follows:
(a)Net of taxes paid for employee shares withheld of $46 million, $50 million and $53 million in 2023, 2022 and 2021, respectively.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes Income before income taxes is comprised of the following components:
Provision for income taxes is comprised of the following components:
Principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (provision for income taxes as a percentage of income before income taxes) are as follows:
The earnings represented by non-cash operating assets, such as fixed assets and inventory, will continue to be permanently reinvested outside the United States. Provisions of the U.S. Tax Cuts and Jobs Act (the Tax Act), such as the one-time tax on indefinitely reinvested earnings and the global intangible low-taxed income (GILTI) tax for years beginning in 2018, eliminate any additional U.S. taxation resulting from repatriation of earnings of non-U.S. subsidiaries to the United States. Consequently, no U.S. tax provision has been made for the future remittance of these earnings. However, withholding or distribution taxes in certain non-U.S. jurisdictions will be incurred upon repatriation of available cash to the United States. A provision has been made for deferred taxes on these undistributed earnings to the extent that repatriation of the available cash to the United States is expected to result in a tax liability. As of December 31, 2023, we have no basis differences that would result in material unrecognized deferred tax liabilities. We have made an allowable policy election to account for the effects of GILTI as a component of income tax expense in the period in which the tax is incurred. The primary components of deferred tax assets and liabilities are as follows:
The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows:
We make an ongoing assessment regarding the realization of U.S. and non-U.S. deferred tax assets. This assessment is based on our evaluation of relevant criteria, including the existence of deferred tax liabilities that can be used to absorb deferred tax assets, taxable income in prior carryback years and expectations for future taxable income. Valuation allowances increased $9 million in 2023, increased $1 million in 2022 and increased $9 million in 2021. These changes had no impact to net income in 2023, 2022 or 2021. We have no material tax loss carryforwards as of December 31, 2023. Cash payments made for income taxes, net of refunds, were $1.35 billion, $1.48 billion and $1.20 billion in 2023, 2022 and 2021, respectively. Uncertain tax positions We operate in a number of tax jurisdictions, and our income tax returns are subject to examination by tax authorities in those jurisdictions who may challenge any item on these tax returns. Because the matters challenged by authorities are typically complex, their ultimate outcome is uncertain. Before any benefit can be recorded in our financial statements, we must determine that it is “more likely than not” that a tax position will be sustained by the appropriate tax authorities. We recognize accrued interest related to uncertain tax positions and penalties as components of OI&E. The changes in the total amounts of uncertain tax positions are as follows:
The liability for uncertain tax positions is a component of other long-term liabilities on our Consolidated Balance Sheets. All of the $82 million liabilities for uncertain tax positions at both December 31, 2023 and 2022 are comprised of positions that, if recognized, would lower the effective tax rate. If these liabilities are ultimately realized, no existing deferred tax assets in 2023 or 2022 would also be realized. As of December 31, 2023, the statute of limitations remains open for U.S. federal tax returns for 2017 and following years. Certain tax treaty procedures for relief from double taxation remain pending for U.S. federal tax returns for the years 2018 through 2022. In non-U.S. jurisdictions, the years open to audit represent the years still open under the statute of limitations. With respect to major jurisdictions outside the United States, our subsidiaries are no longer subject to income tax audits for years before 2012.
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Financial Instruments and Risk Concentration |
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Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Financial instruments and risk concentration | Financial instruments and risk concentration Financial instruments We hold derivative financial instruments such as forward foreign currency exchange contracts, the fair value of which was not material as of December 31, 2023. Our forward foreign currency exchange contracts outstanding as of December 31, 2023, had a notional value of $328 million to hedge our non-U.S. dollar net balance sheet exposures, including $102 million to sell Japanese yen, $77 million to sell British pounds and $58 million to buy Chinese yuan. Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our deferred compensation liabilities, are carried at fair value. Our postretirement plan assets are carried at fair value or net asset value per share. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. As of December 31, 2023, the carrying value of long-term debt, including the current portion, was $11.22 billion, and the estimated fair value was $10.68 billion. The estimated fair value is measured using broker-dealer quotes, which are Level 2 inputs. See Note 6 for a description of fair value and the definition of Level 2 inputs. Risk concentration We are subject to counterparty risks from financial institutions, customers and issuers of debt securities. Financial instruments that could subject us to concentrations of credit risk are primarily cash deposits, cash equivalents, short-term investments and accounts receivable. To manage our credit risk exposure, we place cash investments in investment-grade debt securities and limit the amount of credit exposure to any one issuer. We also limit counterparties on cash deposits and financial derivative contracts to financial institutions with investment-grade ratings. Concentrations of credit risk with respect to accounts receivable are limited due to our large number of customers and their dispersion across different industries and geographic areas. We maintain allowances for expected returns, disputes, adjustments, incentives and credit losses. These allowances are deducted from accounts receivable on our Consolidated Balance Sheets. Accounts receivable allowances changed to reflect amounts charged (credited) to operating results by $3 million, $5 million and ($3) million in 2023, 2022 and 2021, respectively.
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Valuation of Debt and Equity Investments and Certain Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation of debt and equity investments and certain liabilities | Valuation of debt and equity investments and certain liabilities Investments measured at fair value Money market funds, debt investments and mutual funds are stated at fair value, which is generally based on market prices or broker quotes. We classify all debt investments as available-for-sale. See Fair-value considerations. Unrealized gains and losses are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets, and any credit losses are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income. Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. Other investments Our other investments include equity-method investments and nonmarketable investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other nonmarketable securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results. Nonmarketable securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on nonmarketable investments are recognized in OI&E. Details of our investments are as follows:
As of December 31, 2023 and 2022, unrealized gains and losses associated with our debt investments were not material. We did not recognize any credit losses related to debt investments in 2023, 2022 or 2021. The following table presents the aggregate maturities of our debt investments as of December 31, 2023:
In 2023, 2022 and 2021, the proceeds from sales, redemptions and maturities of short-term debt investments were $13.39 billion, $13.66 billion and $8.48 billion, respectively. Gross realized gains and losses from these sales were not material. Fair-value considerations We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy described below indicates the extent and level of judgment used to estimate fair-value measurements. •Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. •Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. •Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of December 31, 2023 and 2022, we had no Level 3 assets or liabilities. The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value.
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Postretirement Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement benefit plans | Postretirement benefit plans Plan descriptions We have various employee retirement plans, including defined contribution, defined benefit and retiree health care benefit plans. For qualifying employees, we offer deferred compensation arrangements. U.S. retirement plans Our principal retirement plans in the United States are a defined contribution plan, an enhanced defined contribution plan and qualified and non-qualified defined benefit pension plans. The defined benefit plans were closed to new participants in 1997, and then current participants were allowed to make a one-time election to continue accruing a benefit in the plans or to cease accruing a benefit and instead to participate in the enhanced defined contribution plan. Both defined contribution plans offer an employer-matching savings option that allows employees to make pretax and post-tax contributions to various investment choices. Employees who elected to continue accruing a benefit in the qualified defined benefit pension plans may also participate in the defined contribution plan, where employer-matching contributions are provided for up to 2% of the employee’s annual eligible earnings. Employees who elected not to continue accruing a benefit in the defined benefit pension plans and employees hired after November 1997 and through December 31, 2003, may participate in the enhanced defined contribution plan. This plan provides for a fixed employer contribution of 2% of the employee’s annual eligible earnings, plus an employer-matching contribution of up to 4% of the employee’s annual eligible earnings. Employees hired after December 31, 2003, do not receive the fixed employer contribution of 2% of the employee’s annual eligible earnings. As of December 31, 2023 and 2022, as a result of employees’ elections, TI’s U.S. defined contribution plans held shares of TI common stock totaling 5 million shares and 6 million shares valued at $873 million and $940 million, respectively. Dividends paid on these shares in 2023 and 2022 were $27 million and $28 million, respectively. Effective April 1, 2016, the TI common stock fund was frozen to new contributions or transfers into the fund. Our aggregate expense for the U.S. defined contribution plans was $75 million in 2023, $70 million in 2022 and $63 million in 2021. The defined benefit pension plans include employees still accruing benefits, as well as employees and participants who no longer accrue service-related benefits, but instead, may participate in the enhanced defined contribution plan. Benefits under the qualified defined benefit pension plan are determined using a formula based on years of service and the highest consecutive years of compensation. We intend to contribute amounts to this plan to meet the minimum funding requirements of applicable local laws and regulations, plus such additional amounts as we deem appropriate. The non-qualified defined benefit plans are unfunded and closed to new participants. U.S. retiree health care benefit plan U.S. employees who meet eligibility requirements are offered medical coverage during retirement. We make a contribution toward the cost of those retiree medical benefits for certain retirees and their dependents. The contribution rates are based upon various factors, the most important of which are an employee’s date of hire, date of retirement, years of service and eligibility for Medicare benefits. The balance of the cost is borne by the plan’s participants. Employees hired after January 1, 2001, are responsible for the full cost of their medical benefits during retirement. Non-U.S. retirement plans We provide retirement coverage for non-U.S. employees, as required by local laws or to the extent we deem appropriate, through a number of defined benefit and defined contribution plans. Retirement benefits are generally based on an employee’s years of service and compensation. Funding requirements are determined on an individual country and plan basis and are subject to local country practices and market circumstances. As of December 31, 2023 and 2022, as a result of employees’ elections, TI’s non-U.S. defined contribution plans held TI common stock valued at $34 million and $33 million, respectively. Dividends paid on these shares of TI common stock in 2023 and 2022 were not material. Effects on our Consolidated Statements of Income and Balance Sheets Expenses related to defined benefit and retiree health care benefit plans are as follows:
All defined benefit and retiree health care benefit plan expense components other than service cost are recognized in in our Consolidated Statements of Income. Service cost is recognized within operating profit. For the U.S. qualified pension and retiree health care plans, the expected return on plan assets component of net periodic benefit cost is based upon a market-related value of assets. In accordance with U.S. GAAP, the market-related value of assets is the fair value adjusted by a smoothing technique whereby certain gains and losses are phased in over a period of three years. Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows:
Changes in actuarial gains and losses in the projected benefit obligations are generally driven by discount rate movement. Amounts recognized on our Consolidated Balance Sheets as of December 31, are as follows:
Contributions to the plans meet or exceed all minimum funding requirements. We expect to contribute about $10 million to our retirement benefit plans in 2024. Accumulated benefit obligations, which are generally less than the projected benefit obligations as they exclude the impact of future salary increases, were $480 million and $489 million as of December 31, 2023 and 2022, respectively, for the U.S. defined benefit plans, and $1.67 billion and $1.60 billion as of December 31, 2023 and 2022, respectively, for the non-U.S. defined benefit plans. The change in AOCI is as follows:
Information on plan assets We report and measure the plan assets of our defined benefit pension and other postretirement plans at fair value. The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 6.
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents. The investments in our major benefit plans largely consist of low-cost, broad-market index funds to mitigate risks of concentration within market sectors. Our investment policy is designed to better match the interest rate sensitivity of the plan assets and liabilities. The appropriate mix of equity and bond investments is determined primarily through the use of detailed asset-liability modeling studies that look to balance the impact of changes in the discount rate against the need to provide asset growth to cover future service cost. Most of our plans around the world have a greater proportion of fixed income securities with return characteristics that are more closely aligned with changes in the liabilities caused by discount rate volatility. Assumptions and investment policies
We utilize a variety of methods to select an appropriate discount rate depending on the depth of the corporate bond market in the country in which the benefit plan operates. In the United States, we use a settlement approach whereby a portfolio of bonds is selected from the universe of actively traded high-quality U.S. corporate bonds. The selected portfolio is designed to simulate a portfolio that would provide cash flows sufficient to pay the plan’s expected benefit payments when due. The resulting discount rate reflects the rate of return of the selected portfolio of bonds. For our non-U.S. locations with a sufficient number of actively traded high-quality bonds, an analysis is performed in which the projected cash flows from the defined benefit plans are discounted against a yield curve constructed with an appropriate universe of high-quality corporate bonds available in each country. In this manner, a present value is developed. The discount rate selected is the single equivalent rate that produces the same present value. For countries that lack a sufficient corporate bond market, a government bond index is used to establish the discount rate. Assumptions for the expected long-term rate of return on plan assets are based on future expectations for returns for each asset class and the effect of periodic target asset allocation rebalancing. We adjust the results for the payment of reasonable expenses of the plan from plan assets. We believe our assumptions are appropriate based on the investment mix and long-term nature of the plans’ investments. Assumptions used for the non-U.S. defined benefit plans reflect the different economic environments within the various countries. The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows:
We rebalance the plans’ investments when they are outside the target allocation ranges. Weighted average asset allocations as of December 31 are as follows:
None of the plan assets related to the defined benefit pension plans and retiree health care benefit plan are directly invested in TI common stock. The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets.
Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows:
Deferred compensation plans We have deferred compensation plans that allow U.S. employees whose base salary and management responsibility exceed a certain level to defer receipt of a portion of their cash compensation. Payments under these plans are made based on the participant’s distribution election and plan balance. Participants can earn a return on their deferred compensation based on notional investments in the same investment funds that are offered in our defined contribution plans. As of December 31, 2023, our liability to participants of the deferred compensation plans was $393 million and is recorded in other long-term liabilities on our Consolidated Balance Sheets. This amount reflects the accumulated participant deferrals and earnings thereon as of that date. We utilize total return swaps and investments in mutual funds that serve as economic hedges of our exposure to changes in the fair value of these liabilities. We record changes in the fair value of the liability and the related total return swaps and mutual funds in SG&A, as discussed in Note 6. As of December 31, 2023, we held $12 million in mutual funds related to these plans that are recorded in long-term investments on our Consolidated Balance Sheets.
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Debt and Lines of Credit |
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Debt and lines of credit | Debt and lines of credit Short-term borrowings We maintain a line of credit to provide additional liquidity through bank loans and, if necessary, to support commercial paper borrowings. As of December 31, 2023, the aforementioned line of credit was a variable-rate, revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $1 billion until March 2024. The interest rate on borrowings under this credit facility, if drawn, is indexed to the applicable Term Secured Overnight Financing Rate (Term SOFR). As of December 31, 2023, our credit facility was undrawn, and we had no commercial paper outstanding. Long-term debt In March 2023, we issued two series of senior unsecured notes for an aggregate principal amount of $1.4 billion, consisting of $750 million of 4.90% notes due in 2033 and $650 million of 5.00% notes due in 2053. We incurred $11 million of issuance and other related costs. The proceeds of the offering were $1.4 billion, net of the original issuance discounts, which will be used for general corporate purposes. In May 2023, we issued three series of senior unsecured notes for an aggregate principal amount of $1.6 billion, consisting of $200 million of 4.60% notes due in 2028, $200 million of 4.90% notes due in 2033 and $1.2 billion of 5.05% notes due in 2063. We incurred $7 million of issuance and other related costs. The proceeds of the offering were $1.6 billion, net of the original issuance discounts and premiums, which will be used for general corporate purposes. In May 2023, we retired $500 million of maturing debt. In April 2022, we retired $500 million of maturing debt. In August 2022, we issued two series of senior unsecured notes for an aggregate principal amount of $700 million, consisting of $400 million of 3.65% notes due in 2032 and $300 million of 4.10% notes due in 2052. We incurred $3 million of issuance and other related costs. The proceeds of the offering were $695 million, net of the original issuance discounts, which will be used for general corporate purposes. In November 2022, we issued two series of senior unsecured notes for an aggregate principal amount of $800 million, consisting of $300 million of 4.70% notes due in 2024 and $500 million of 4.60% notes due in 2028. We incurred $3 million of issuance and other related costs. The proceeds of the offering were $799 million, net of the original issuance discounts, which will be used for general corporate purposes. In February 2021, we retired $550 million of maturing debt. In September 2021, we issued three series of senior unsecured notes for an aggregate principal amount of $1.5 billion, consisting of $500 million of 1.125% notes due in 2026, $500 million of 1.90% notes due in 2031 and $500 million of 2.70% notes due in 2051. We incurred $10 million of issuance costs. The proceeds of the offering were $1.5 billion, net of the original issuance discounts, which will be used for general corporate purposes. Long-term debt outstanding is as follows:
Interest and debt expense was $353 million, $214 million and $184 million in 2023, 2022 and 2021, respectively. This was net of the amortized discounts, premiums and issuance and other related costs. Cash payments for interest on long-term debt were $321 million, $198 million and $181 million in 2023, 2022 and 2021, respectively. Capitalized interest was $11 million, $6 million and $8 million in 2023, 2022 and 2021, respectively.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases We conduct certain operations in leased facilities and also lease a portion of our data processing and other equipment. In addition, certain long-term supply agreements to purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require us to pay real estate taxes, insurance and maintenance costs. Our leases are included as a component of the following balance sheet lines:
Details of our operating leases are as follows:
As of December 31, 2023, we had committed to make the following minimum payments under our noncancelable operating leases:
The weighted average remaining lease term was 11.7 years and 8.8 years as of December 31, 2023 and 2022, respectively. The weighted average discount rate was 4.22% and 2.71% as of December 31, 2023 and 2022, respectively.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and contingencies | Commitments and contingencies Purchase commitments Our purchase commitments include payments for software licenses and contractual arrangements with suppliers when there is a fixed, noncancelable payment schedule or when minimum payments are due with a reduced delivery schedule. As of December 31, 2023, we had committed to make the following minimum payments under our purchase commitments:
Indemnification guarantees We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. Warranty costs/product liabilities Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. Product claim consideration may exceed the price of our products. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our consolidated financial statements. We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. General We are subject to various legal and administrative proceedings. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our consolidated financial statements.
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Supplemental financial information |
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Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental financial information | Supplemental financial information Restructuring charges/other Restructuring charges/other are included in Other for segment reporting purposes and are comprised of the following components:
(a)Includes costs related to our purchase of the Lehi, Utah, manufacturing facility, as well as preproduction costs before December 2022. (b)Includes a $50 million gain from the sale of property in October 2021. Other income (expense), net (OI&E)
(a)Other income includes interest, royalty and lease income, as well as investment gains and losses. (b)Other expense includes a portion of pension and other retiree benefit costs, lease expense, tax interest, currency gains and losses and miscellaneous items. Prepaid expenses and other current assets
Property, plant and equipment at cost
Goodwill Goodwill by segment as of December 31, 2023 and 2022, is as follows:
We perform our annual goodwill impairment test in the fourth quarter and determine whether the fair value of each of our reporting units is in excess of its carrying value. In 2023, 2022 and 2021, we determined no impairment was indicated. Other long-term assets
Accrued expenses and other liabilities
Accumulated other comprehensive income (loss), net of taxes (AOCI)
Details on amounts reclassified out of accumulated other comprehensive income (loss), net of taxes, to net income Our Consolidated Statements of Comprehensive Income include items that have been recognized within net income in 2023, 2022 and 2021. The table below details where these transactions are recorded in our Consolidated Statements of Income.
(a)Detailed in Note 7
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Basis of Presentation and Significant Accounting Policies and Practices (Policies) |
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Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The basis of these financial statements is comparable for all periods presented herein. The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All dollar and share amounts in the financial statements and tables in these notes, except per-share amounts, are presented in millions unless otherwise indicated. We have reclassified certain amounts in the prior periods’ financial statements to conform to the 2023 presentation. The preparation of financial statements requires the use of estimates from which final results may vary.
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Revenue recognition | Revenue recognition We generate revenue primarily from the sale of semiconductor products, either directly to a customer or to a distributor, and recognize revenue when control is transferred. Control is considered transferred when title and risk of loss pass, when the customer becomes obligated to pay and, where required, when the customer has accepted the products. This transfer generally occurs at a point in time upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order. Payment for sales to customers and distributors is generally due on our standard commercial terms. For sales to distributors, payment is not contingent upon resale of the products. Revenue from sales of our products that are subject to inventory consignment agreements is recognized at a point in time, when the customer or distributor pulls product from consignment inventory that we store at designated locations. Delivery and transfer of control occur at that point, when title and risk of loss transfers and the customer or distributor becomes obligated to pay for the products pulled from inventory. Until the products are pulled for use or sale by the customer or distributor, we retain control over the products’ disposition, including the right to pull back or relocate the products. The revenue recognized is adjusted based on allowances, which are prepared on a portfolio basis using a most likely amount methodology based on analysis of historical data and contractual terms. These allowances, which are not material, generally include adjustments for pricing arrangements, product returns and incentives. We recognize shipping fees received from customers, if any, in revenue. We include the related shipping and handling costs in cost of revenue. The majority of our customers pay these fees directly to third parties.
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Advertising costs | Advertising costs We expense advertising and other promotional costs as incurred.
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Income taxes | Income taxes We account for income taxes using an asset and liability approach. We record the amount of taxes payable or refundable for the current year and the deferred tax assets and liabilities for future tax consequences related to events that have been recognized in the financial statements or tax returns. We record a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized.
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Other assessed taxes | Other assessed taxes Some transactions require us to collect taxes such as sales, value-added and excise taxes from our customers. These transactions are presented in our Consolidated Statements of Income on a net (excluded from revenue) basis.
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Leases | Leases We determine if an arrangement is a lease at inception. Leases are included in other long-term assets, accrued expenses and other liabilities, and other long-term liabilities on our Consolidated Balance Sheets. Lease assets represent our right to use underlying assets for the lease term, and lease liabilities represent our obligations to make lease payments over the lease term. On the commencement date, leases are evaluated for classification, and assets and liabilities are recognized based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available at commencement in determining the present value of lease payments. Operating lease expense is generally recognized on a straight-line basis over the lease term. Our lease values include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. We have agreements with lease and non-lease components, which are accounted for as a single lease component. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
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Earnings per share (EPS) | Earnings per share (EPS) We use the two-class method for calculating EPS because the restricted stock units (RSUs) we grant are participating securities containing nonforfeitable rights to receive dividend equivalents. Under the two-class method, a portion of net income is allocated to RSUs and excluded from the calculation of income allocated to common stock.
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Investments | Investments We present investments on our Consolidated Balance Sheets as cash equivalents, short-term investments or other long-term assets. See Note 6 for additional information. •Cash equivalents and short-term investments – The primary objectives of our cash equivalent and short-term investment activities are to preserve capital and maintain liquidity while generating appropriate returns. We consider investments in available-for-sale debt securities with maturities of 90 days or less from the date of our investment to be cash equivalents. We consider investments in available-for-sale debt securities with maturities beyond 90 days from the date of our investment as being available for use in current operations and include them in short-term investments. •Other long-term assets – Long-term investments, which are included within other long-term assets on our Consolidated Balance Sheets, consist of mutual funds, venture capital funds and nonmarketable securities. Investments measured at fair value Money market funds, debt investments and mutual funds are stated at fair value, which is generally based on market prices or broker quotes. We classify all debt investments as available-for-sale. See Fair-value considerations. Unrealized gains and losses are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets, and any credit losses are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income. Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. Other investments Our other investments include equity-method investments and nonmarketable investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other nonmarketable securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results. Nonmarketable securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on nonmarketable investments are recognized in OI&E.
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Inventories | Inventories Inventories are stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates cost on a first-in, first-out basis. Standard cost is based on the normal utilization of installed factory capacity. Cost associated with underutilization of capacity is expensed as incurred. Inventory held at consignment locations is included in our finished goods inventory. We review inventory quarterly for salability and obsolescence. A statistical allowance is provided for inventory considered unlikely to be sold. The statistical allowance is based on an analysis of historical disposal activity, historical customer shipments, as well as estimated future sales. A specific allowance for each material type will be carried if there is a significant event not captured by the statistical allowance. We write off inventory in the period in which disposal occurs.
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Government incentives | Government incentives Incentives provided by government entities are recognized when we have reasonable assurance that we will comply with the conditions of the incentive, if any, and the incentive will be received. Incentives, which include non-income tax incentives, related to the acquisition or construction of fixed assets are recognized as a reduction in the carrying amounts of the related assets and reduce depreciation expense over the useful lives of the assets. Incentives for specific operating activities are offset against the related expense in the period the expense is incurred. In August 2022, the U.S. government enacted the U.S. CHIPS and Science Act, which provides funding for manufacturing grants and research investments, and it establishes a 25% investment tax credit for certain investments in U.S. semiconductor manufacturing.
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Property, plant and equipment; acquisition-related intangibles and other capitalized costs | Property, plant and equipment; acquisition-related intangibles; and other capitalized costs Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Our cost basis includes certain assets acquired in business combinations that were initially recorded at fair value as of the date of acquisition. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. We amortize acquisition-related intangibles on a straight-line basis over the estimated economic life of the assets. Capitalized software licenses are generally amortized on a straight-line basis over the term of the license. Fully depreciated or amortized assets are written off against accumulated depreciation or amortization.
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Impairments of long-lived assets | Impairments of long-lived assets We regularly review whether facts or circumstances exist that indicate the carrying values of property, plant and equipment or other long-lived assets, including intangible assets, are impaired. We assess the recoverability of assets by comparing the projected undiscounted net cash flows associated with those assets to their respective carrying amounts. Any impairment charge is based on the excess of the carrying amount over the fair value of those assets. Fair value is determined by available market valuations, if applicable, or by discounted cash flows.
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Goodwill | Goodwill Goodwill is reviewed for impairment annually in the fourth quarter or more frequently if certain impairment indicators arise. We perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, or if we elect not to use a qualitative assessment, then we perform a quantitative goodwill impairment test. See Note 11 for additional information.
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Foreign currency | Foreign currency The functional currency for our non-U.S. subsidiaries is the U.S. dollar. Accounts recorded in currencies other than the U.S. dollar are remeasured into the functional currency. Current assets (except inventories), deferred taxes, current liabilities and long-term liabilities are remeasured at exchange rates in effect at the end of each reporting period. Property, plant and equipment with associated depreciation and inventories are valued at historical exchange rates. Revenue and expense accounts other than depreciation for each month are calculated at the appropriate daily rate of exchange. Currency exchange gains and losses from remeasurement are credited or charged to OI&E.
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Derivatives and hedging | Derivatives and hedging We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. We are exposed to variability in compensation charges related to certain deferred compensation obligations to employees. We use total return swaps to economically hedge this exposure and offset the related compensation expense, recognizing changes in the value of the swaps and the related deferred compensation liabilities in SG&A. In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions were not material. We do not use derivatives for speculative or trading purposes.
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Stock compensation | We recognize compensation expense for non-qualified stock options and RSUs on a straight-line basis over the minimum service period required for vesting of the award, adjusting for estimated forfeitures based on historical activity. Awards issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. Options issued under our ESPP are expensed over a three-month period. We use market-based measures of implied volatility to determine expected volatility on all options granted. We determine expected lives of options based on the historical option exercise experience of our option holders using a rolling 10-year average. Expected dividend yields are based on the annualized approved quarterly dividend rate and the current market price of our common stock at the time of grant. No assumption for a future dividend rate change is included unless there is an approved plan to change the dividend in the near term.
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Fair values considerations | Fair-value considerations We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy described below indicates the extent and level of judgment used to estimate fair-value measurements. •Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. •Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. •Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of December 31, 2023 and 2022, we had no Level 3 assets or liabilities.
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Indemnification guarantees and warranty costs/product liabilities | Indemnification guarantees We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. Warranty costs/product liabilities Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. Product claim consideration may exceed the price of our products. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our consolidated financial statements. We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability.
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Description of Business, Including Segment and Geographic Area Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue and Operating Profit, by Segment | Segment information
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Schedule of Revenue, by Geographic Area | Geographic area information Our estimate for revenue based on the geographic location of our end customers’ headquarters, which represents where critical decisions are made, is as follows:
(a)Revenue from end customers headquartered in Germany was 13%, 11% and 9% of total revenue in 2023, 2022 and 2021, respectively.
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Schedule Property, Plant and Equipment by Geographic Area | Property, plant and equipment by geographic area, based on physical location:
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Basis of Presentation and Significant Accounting Policies and Practices (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share, Basic and Diluted | Computation and reconciliation of earnings per common share are as follows:
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Stock Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Compensation Expense Allocation Within the Consolidated Statements of Income | Total stock compensation expense recognized is as follows:
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Schedule of Weighted Average Assumptions Used to Estimate the Fair Values for Non-qualified Stock Options | We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions:
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Schedule of Stock Option and RSU Transactions Under Long-term Incentive and Director Compensation Plans | Stock option and RSU transactions under our long-term incentive and director compensation plans are as follows:
(a)Forfeited and expired shares were not material.
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Schedule of Shares Outstanding Under Stock Option Plans, by Exercise Price Range | Summarized information about stock options outstanding as of December 31, 2023, is as follows:
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Schedule of Stock Options That are Vested and Expected to Vest, Outstanding and Exercisable |
(a)Includes effects of expected forfeitures. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1.34 billion.
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Schedule of Changes in Treasury Stock | The following table reflects the changes in our treasury shares:
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Schedule of Cash Proceeds Received from Share-based Payment Awards | The effects on cash flows are as follows:
(a)Net of taxes paid for employee shares withheld of $46 million, $50 million and $53 million in 2023, 2022 and 2021, respectively.
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Income taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes is comprised of the following components:
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Provision for income taxes | Provision for income taxes is comprised of the following components:
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Principal reconciliation items from U.S. statutory income tax rate to the effective tax rate | Principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (provision for income taxes as a percentage of income before income taxes) are as follows:
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Primary components of deferred tax assets and liabilities | The primary components of deferred tax assets and liabilities are as follows:
The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows:
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Summary of uncertain tax positions | The changes in the total amounts of uncertain tax positions are as follows:
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Valuation of Debt and Equity Investments and Certain Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Details of our investments are as follows:
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Aggregate Maturities of Available-for-sale Debt Investments | The following table presents the aggregate maturities of our debt investments as of December 31, 2023:
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Assets and Liabilities Accounted for at Fair Value | The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value.
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Postretirement Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense Related to Defined Benefit and Retiree Health Care Benefit Plans | Expenses related to defined benefit and retiree health care benefit plans are as follows:
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Schedule of Changes in the Benefit Obligations and Plan Assets for the Defined Benefit and Retiree Health Care Benefit Plans | Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows:
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Schedule of Amounts Recognized in our Balance Sheet | Amounts recognized on our Consolidated Balance Sheets as of December 31, are as follows:
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Schedule of Change in AOCI | The change in AOCI is as follows:
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Schedule of Allocation of Plan Assets | The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 6.
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents. The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows:
Weighted average asset allocations as of December 31 are as follows:
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Schedule of Assumptions Used | Assumptions and investment policies
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Schedule of Assumed Future Benefit Payments | The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets.
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Schedule of Assumed Health Care Cost Trend Rates for U.S Retiree Health Care Benefit Plan | Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows:
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Debt and Lines of Credit (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt outstanding is as follows:
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet components of leases | Our leases are included as a component of the following balance sheet lines:
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Schedule of Operating Leases | Details of our operating leases are as follows:
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Maturities of operating leases | As of December 31, 2023, we had committed to make the following minimum payments under our noncancelable operating leases:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Payments Under Purchase Commitments | As of December 31, 2023, we had committed to make the following minimum payments under our purchase commitments:
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Supplemental financial information (Tables) |
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Disclosure Text Block Supplement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges and other | Restructuring charges/other are included in Other for segment reporting purposes and are comprised of the following components:
(a)Includes costs related to our purchase of the Lehi, Utah, manufacturing facility, as well as preproduction costs before December 2022. (b)Includes a $50 million gain from the sale of property in October 2021.
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Other income (expense), net (OI&E) | Other income (expense), net (OI&E)
(a)Other income includes interest, royalty and lease income, as well as investment gains and losses. (b)Other expense includes a portion of pension and other retiree benefit costs, lease expense, tax interest, currency gains and losses and miscellaneous items.
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Prepaid expenses and other current assets | Prepaid expenses and other current assets
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Property, plant and equipment at cost | Property, plant and equipment at cost
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Schedule of goodwill | Goodwill by segment as of December 31, 2023 and 2022, is as follows:
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Other long-term assets | Other long-term assets
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Accrued expenses and other liabilities | Accrued expenses and other liabilities
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Accumulated other comprehensive income (loss), net of taxes (AOCI) | Accumulated other comprehensive income (loss), net of taxes (AOCI)
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Amounts reclassified out of accumulated other comprehensive income (loss), net of taxes, to net income | The table below details where these transactions are recorded in our Consolidated Statements of Income.
(a)Detailed in Note 7
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Description of Business, Including Segment and Geographic Area Information - Additional Information (Details) |
12 Months Ended |
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Dec. 31, 2023
reportable_segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Description of Business, Including Segment and Geographic Area Information - Schedule of Revenue and Operating Profit by Segment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Segment Reporting Information [Line Items] | |||
Total revenue | $ 17,519 | $ 20,028 | $ 18,344 |
Total operating profit | 7,331 | 10,140 | 8,960 |
Analog | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 13,040 | 15,359 | 14,050 |
Total operating profit | 5,821 | 8,359 | 7,393 |
Embedded Processing | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 3,368 | 3,261 | 3,049 |
Total operating profit | 1,008 | 1,253 | 1,174 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,111 | 1,408 | 1,245 |
Total operating profit | $ 502 | $ 528 | $ 393 |
Description of Business, Including Segment and Geographic Area Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Segment Reporting Information [Line Items] | |||||
Total revenue | $ 17,519 | $ 20,028 | $ 18,344 | ||
Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 17,519 | $ 20,028 | $ 18,344 | ||
Concentration risk | 100.00% | 100.00% | 100.00% | ||
United States | Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 5,814 | $ 6,609 | $ 6,237 | ||
Concentration risk | 33.00% | 33.00% | 34.00% | ||
China | Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 3,293 | $ 4,807 | $ 4,586 | ||
Concentration risk | 19.00% | 24.00% | 25.00% | ||
Rest of Asia | Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 1,721 | $ 2,003 | $ 2,018 | ||
Concentration risk | 10.00% | 10.00% | 11.00% | ||
Europe, Middle East and Africa | Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | [1] | $ 4,642 | $ 4,807 | $ 3,852 | |
Concentration risk | [1] | 26.00% | 24.00% | 21.00% | |
Japan | Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 1,782 | $ 1,602 | $ 1,468 | ||
Concentration risk | 10.00% | 8.00% | 8.00% | ||
Rest of world | Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 267 | $ 200 | $ 183 | ||
Concentration risk | 2.00% | 1.00% | 1.00% | ||
Germany | Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk | 13.00% | 11.00% | 9.00% | ||
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Description of Business, Including Segment and Geographic Area Information - Schedule of Property, Plant and Equipment by Geographic Area (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
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Segment Reporting Information [Line Items] | ||
Total property, plant and equipment | $ 9,999 | $ 6,876 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment | 7,548 | 5,134 |
China | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment | 731 | 648 |
Rest of Asia | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment | 1,433 | 896 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment | 68 | 44 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment | 169 | 121 |
Rest of world | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment | $ 50 | $ 33 |
Basis of Presentation and Significant Accounting Policies and Practices - Additional Information (Details) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising expense | $ 28 | $ 27 | $ 27 |
Antidilutive securities excluded from computation of earnings per share, Amount (in shares) | 10 | 5 | 3 |
Maximum length to maturity of a security, from the investment date, where it is classified as cash and cash equivalent | 90 days | ||
Length to maturity from the investment date of a security where the length of time is too short to be classified as a short-term investment | 90 days | ||
Government incentives total | $ 1,360 | ||
Government incentive, current | 497 | $ 0 | |
Government incentive, noncurrent | $ 859 | $ 395 | |
Government Assistance, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of revenue (COR) | ||
Government Assistance, Amount | $ 45 |
Basis of Presentation and Significant Accounting Policies and Practices - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Basic EPS: | |||
Net income | $ 6,510 | $ 8,749 | $ 7,769 |
Income allocated to RSUs | (34) | (40) | (33) |
Income allocated to common stock for basic EPS | $ 6,476 | $ 8,709 | $ 7,736 |
Weighted average number of shares outstanding, basic (in shares) | 908 | 916 | 923 |
Basic earnings per common share (in dollars per share) | $ 7.13 | $ 9.51 | $ 8.38 |
Dilutive effect of stock compensation plans | 8 | 10 | 13 |
Diluted EPS: | |||
Net income | $ 6,510 | $ 8,749 | $ 7,769 |
Income allocated to RSUs | (33) | (39) | (33) |
Income allocated to common stock for diluted EPS | $ 6,477 | $ 8,710 | $ 7,736 |
Weighted average number of shares outstanding, diluted (in shares) | 916 | 926 | 936 |
Diluted earnings per common share (in dollars per share) | $ 7.07 | $ 9.41 | $ 8.26 |
Stock Compensation - Additional Information (Details) $ in Millions |
12 Months Ended |
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Dec. 31, 2023
USD ($)
shares
| |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Share of TI common stock (in shares) | 1 |
Number of shares remaining available for future issuance (in shares) | 27,000,000 |
Future compensation not yet recognized in the Statements of Income | $ | $ 490 |
Weighted average recognition period | 1 year 9 months 18 days |
Expected life of options | 10 years |
Remaining stock repurchase authorizations | $ | $ 21,200 |
Employee stock purchase plan | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Percent of the underlying common stock's market price participants pay for options (in hundredths) | 85.00% |
Number of shares remaining available for future issuance (in shares) | 31,000,000 |
ESPP option term (in months) | 3 months |
Long-term incentive and director compensation plans | Employee Stock Option | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Term of the long term incentive stock options | 10 years |
Award vesting period (in years) | 4 years |
Long-term incentive and director compensation plans | Restricted Stock Units (RSUs) | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Award vesting period (in years) | 4 years |
Stock Compensation - Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation | $ 362 | $ 289 | $ 230 |
COR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation | 44 | 34 | 21 |
R&D | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation | 119 | 90 | 67 |
SG&A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation | 199 | 165 | 134 |
Restructuring charges/other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation | $ 0 | $ 0 | $ 8 |
Stock Compensation - Fair-value Methods and Assumptions (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Share-Based Payment Arrangement [Abstract] | |||
Weighted average grant date fair value, per share (in dollars per share) | $ 46.23 | $ 39.94 | $ 40.78 |
Expected volatility (in percent) | 31.00% | 29.00% | 32.00% |
Expected lives | 6 years 1 month 6 days | 6 years 4 months 24 days | 6 years 8 months 12 days |
Risk-free interest rates (in percent) | 3.60% | 1.83% | 0.72% |
Expected dividend yields (in percent) | 2.86% | 2.64% | 2.41% |
Stock Compensation - Stock Options and RSUs Outstanding (Details) - Long-term incentive and director compensation plans - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Employee Stock Option | |||
Stock Options, Shares | |||
Options outstanding, Beginning balance (in shares) | 25 | ||
Granted (in shares) | 4 | ||
Exercised (in shares) | (3) | ||
Options outstanding, Ending balance (in shares) | 26 | 25 | |
Stock Options, Weighted Average Exercise Price per Share | |||
Weighted-average exercise price, Outstanding, Beginning of period (in dollars per share) | $ 105.75 | ||
Weighted-average exercise price, Granted (in dollars per share) | 173.90 | ||
Weighted-average exercise price, Exercised (in dollars per share) | 71.16 | ||
Weighted-average exercise price, Outstanding, End of period (in dollars per share) | $ 119.60 | $ 105.75 | |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Share | |||
Aggregate intrinsic values of options exercised | $ 319 | $ 336 | $ 611 |
Restricted Stock Units (RSUs) | |||
Restricted Stock Units, Shares | |||
Awards outstanding other than options, Beginning balance (in shares) | 5 | ||
Granted (in shares) | 2 | ||
Vested (in shares) | (2) | ||
Awards outstanding other than options, Ending balance (in shares) | 5 | 5 | |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Share | |||
Weighted-average grant date fair value, Beginning of period (in dollars per share) | $ 147.30 | ||
Weighted-average grant-date fair value, Granted (in dollars per share) | 172.59 | $ 174.39 | $ 176.08 |
Weighted-average grant date fair value, Vested (in dollars per share) | 108.04 | ||
Weighted-average grant date fair value, Ending of period (in dollars per share) | 161.40 | 147.30 | |
Weighted-average grant-date fair value, Granted (in dollars per share) | $ 172.59 | $ 174.39 | $ 176.08 |
Total fair values of shares vested from RSU lapses | $ 106 | $ 121 | $ 115 |
Stock Compensation - Exercise Price Range (Details) - Employee Stock Option - Long-term incentive and director compensation plans - $ / shares shares in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
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Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum (in dollars per share) | $ 44.09 | |
Exercise Price Range, Maximum (in dollars per share) | $ 193.58 | |
Number Outstanding (Shares) | 26 | 25 |
Weighted Average Remaining Contractual Life (Years) | 5 years 3 months 18 days | |
Options Outstanding Weighted Average Exercise Price per Share (in dollars per share) | $ 119.60 | $ 105.75 |
Stock Compensation - Options Vested and Expected to Vest (Details) - Long-term incentive and director compensation plans - Employee Stock Option $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2023
USD ($)
$ / shares
shares
| ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, vested and expected to vest (in shares) | shares | 26 | [1] | ||
Weighted average remaining contractual life, vested and expected to vest (in years) | 5 years 3 months 18 days | [1] | ||
Weighted average exercise price per share, vested and expected to vest (in dollars per share) | $ / shares | $ 119.08 | [1] | ||
Intrinsic value, vested and expected to vest (millions of dollars) | $ 1,340 | [1] | ||
Outstanding options exercisable (in shares) | shares | 17 | |||
Weighted average remaining contractual life, options exercisable | 3 years 10 months 24 days | |||
Weighted average exercise price per share, options exercisable (in dollars per share) | $ / shares | $ 95.21 | |||
Intrinsic value, options exercisable (millions of dollars) | $ 1,300 | |||
Aggregate intrinsic value of stock options outstanding, excluding the effects of expected forfeitures | $ 1,340 | |||
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Stock Compensation - Effect on Shares Outstanding and Treasury Shares (Details) - shares shares in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Change In Treasury Stock Roll Forward [Roll Forward] | ||||
Treasury stock (in shares) | 832 | 835 | 817 | 821 |
Repurchases (in shares) | 2 | 22 | 3 | |
Shares issued (in shares) | (5) | (4) | (7) |
Stock Compensation - Effects on Cash Flows (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Share-Based Payment Arrangement [Abstract] | |||||
Proceeds from common stock transactions | [1] | $ 263 | $ 241 | $ 377 | |
Tax benefit realized from stock compensation | 104 | 110 | 175 | ||
Taxes paid for employee shares withheld | $ 46 | $ 50 | $ 53 | ||
|
Income taxes - Income before income taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||
U.S. | $ 6,445 | $ 9,122 | $ 7,998 |
Non-U.S. | 973 | 910 | 921 |
Income before income taxes | $ 7,418 | $ 10,032 | $ 8,919 |
Income taxes - Provision for income taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||
U.S. federal - Current | $ 943 | $ 1,235 | $ 948 |
Non-U.S. - Current | 240 | 212 | 169 |
U.S. state - Current | 24 | 27 | 18 |
Total current income tax expense (benefit) | 1,207 | 1,474 | 1,135 |
U.S. federal - Deferred | (277) | (223) | (23) |
Non-U.S. - Deferred | (22) | 32 | 38 |
U.S. state - Deferred | 0 | 0 | 0 |
Total deferred income tax expense (benefit) | (299) | (191) | 15 |
Total U.S. federal income taxes | 666 | 1,012 | 925 |
Total Non-U.S. income taxes | 218 | 244 | 207 |
Total U.S. state income taxes | 24 | 27 | 18 |
Provision for income taxes | $ 908 | $ 1,283 | $ 1,150 |
Income taxes - Reconciliation items from U.S. statutory income tax rate to the effective tax rate (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% |
Foreign derived intangible income | (6.80%) | (7.00%) | (6.10%) |
R&D tax credit | (1.30%) | (0.90%) | (0.90%) |
Stock compensation | (1.00%) | (0.70%) | (1.50%) |
Changes in uncertain tax positions | 0.00% | 0.10% | (0.20%) |
Other | 0.30% | 0.30% | 0.60% |
Effective tax rate | 12.20% | 12.80% | 12.90% |
Income taxes - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred tax assets: | ||
Capitalized R&D | $ 750 | $ 380 |
Accrued expenses | 236 | 182 |
Deferred loss and tax credit carryforwards | 205 | 201 |
Stock compensation | 163 | 132 |
Inventories and related reserves | 104 | 88 |
Retirement costs for defined benefit and retiree health care | 37 | 43 |
Other | 47 | 36 |
Total deferred tax assets, before valuation allowance | 1,542 | 1,062 |
Valuation allowance | (198) | (189) |
Total deferred tax assets, after valuation allowance | 1,344 | 873 |
Deferred tax liabilities: | ||
Property, plant and equipment | (592) | (410) |
International earnings | (33) | (35) |
Acquisition-related intangibles and fair-value adjustments | (14) | (13) |
Other | (11) | (8) |
Total deferred tax liabilities | (650) | (466) |
Net deferred tax asset | $ 694 | $ 407 |
Income taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 757 | $ 473 |
Deferred tax liabilities | (63) | (66) |
Net deferred tax asset | $ 694 | $ 407 |
Income Taxes - Additional Information (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Change in deferred tax asset valuation allowances | $ 9,000,000 | $ 1,000,000 | $ (9,000,000) | |
Net income impacted due to change in valuation allowances | 0 | 0 | 0 | |
Tax loss carryforward, U.S. and non-U.S. | 0 | |||
Cash payments for income taxes | 1,350,000,000 | 1,480,000,000 | 1,200,000,000 | |
Liabilities for uncertain tax positions | $ 82,000,000 | $ 82,000,000 | $ 69,000,000 | $ 89,000,000 |
Income taxes - Uncertain tax positions (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 82 | $ 69 | $ 89 |
Additions based on tax positions related to the current year | 3 | 3 | 2 |
Additions for tax positions of prior years | 0 | 10 | 7 |
Reductions for tax positions of prior years | (3) | 0 | (6) |
Settlements with tax authorities | 0 | 0 | (23) |
Expiration of the statute of limitations for assessing taxes | 0 | 0 | 0 |
Balance, December 31 | 82 | 82 | 69 |
Interest expense recognized in the year ended December 31 | (9) | (1) | (5) |
Interest payable as of December 31 | $ 10 | $ 3 | $ 13 |
Financial Instruments and Risk Concentration - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Carrying value of long term debt | $ 11,223 | $ 8,735 | |
Allowance for Credit Loss | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Accounts receivable allowances, amounts charged (credited) to operating results | 3 | $ 5 | $ (3) |
Level 2 | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Fair value of long term debt | 10,680 | ||
Foreign Exchange Forward | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional amount | 328 | ||
Foreign Exchange Forward | Japanese Yen | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional amount | 102 | ||
Foreign Exchange Forward | British Pounds | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional amount | 77 | ||
Foreign Exchange Forward | Yuan | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional amount | $ 58 |
Valuation of Debt and Equity Investments and Certain Liabilities - Investments at Fair Value (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | $ 2,964 | $ 3,050 |
Short-term investments | 5,611 | 6,017 |
Long-Term Investments | 34 | 34 |
Measured at fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 2,163 | 2,343 |
Short-term investments | 5,611 | 6,017 |
Long-Term Investments | 12 | 11 |
Measured at fair value | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 1,068 | 1,238 |
Short-term investments | 0 | 0 |
Long-Term Investments | 0 | 0 |
Measured at fair value | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 349 | 276 |
Short-term investments | 1,605 | 1,535 |
Long-Term Investments | 0 | 0 |
Measured at fair value | U.S. government and agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 696 | 680 |
Short-term investments | 3,808 | 4,234 |
Long-Term Investments | 0 | 0 |
Measured at fair value | Non-U.S. government and agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 50 | 149 |
Short-term investments | 198 | 248 |
Long-Term Investments | 0 | 0 |
Measured at fair value | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-Term Investments | 12 | 11 |
Other measurement basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-Term Investments | 22 | 23 |
Other measurement basis | Equity-method investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-Term Investments | 17 | 18 |
Other measurement basis | Nonmarketable investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-Term Investments | 5 | 5 |
Other measurement basis | Cash on hand | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 801 | 707 |
Short-term investments | 0 | 0 |
Long-Term Investments | $ 0 | $ 0 |
Valuation of Debt and Equity Investments and Certain Liabilities - Additional Information (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Fair Value Disclosures [Abstract] | |||
Credit losses related to available-for-sale investments | $ 0 | $ 0 | $ 0 |
Proceeds from sales, redemptions and maturities of short-term available-for-sale securities | 13,390,000,000 | 13,660,000,000 | $ 8,480,000,000 |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total assets fair value | 0 | 0 | |
Total liabilities fair value | $ 0 | $ 0 |
Valuation of Debt and Equity Investments and Certain Liabilities - Aggregate Maturities of Available-for-sale Debt Investments (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
One year or less | $ 6,362 |
One to two years | $ 344 |
Valuation of Debt and Equity Investments and Certain Liabilities - Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 7,786 | $ 8,371 |
Liabilities, fair value | 393 | 326 |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 393 | 326 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 4,698 | 6,163 |
Liabilities, fair value | 393 | 326 |
Level 1 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 393 | 326 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,088 | 2,208 |
Liabilities, fair value | 0 | 0 |
Level 2 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,068 | 1,238 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,068 | 1,238 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,954 | 1,811 |
Corporate obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Corporate obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,954 | 1,811 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 4,504 | 4,914 |
U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,618 | 4,914 |
U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 886 | 0 |
Non-U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 248 | 397 |
Non-U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Non-U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 248 | 397 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 12 | 11 |
Mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 12 | 11 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 0 | $ 0 |
Postretirement Benefit Plans - Additional Information (Details) - USD ($) shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit pension plan formula, highest consecutive years of compensation (in years) | 5 years | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net (OI&E) | Other income (expense), net (OI&E) | Other income (expense), net (OI&E) |
Length of time certain gains and losses are considered when determining the market-related value of assets related to the U.S. Qualified pension and retiree health care plans (in years) | 3 years | ||
Expected contribution to retirement benefit plans in next fiscal year | $ 10,000,000 | ||
Liability to participants of the deferred compensation plan | 393,000,000 | ||
Deferred compensation plan assets | 12,000,000 | ||
Defined Benefit | Equity investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan assets directly invested in TI common stock | 0 | ||
Retiree Health Care | Equity investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan assets directly invested in TI common stock | $ 0 | ||
U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of company shares held by the U.S. defined contribution plans at year-end (in shares) | 5 | 6 | |
Value of the company shares held by the U.S. defined contribution plans at year-end | $ 873,000,000 | $ 940,000,000 | |
Dividends paid on the company shares held by the U.S. defined contribution plans at year-end | 27,000,000 | 28,000,000 | |
Aggregate expense for the U.S. defined contribution plans | 75,000,000 | 70,000,000 | $ 63,000,000 |
U.S. | Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | 480,000,000 | 489,000,000 | |
Non-U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Value of the company shares held by the non-U.S. retirement plans at year-end | 34,000,000 | 33,000,000 | |
Non-U.S. | Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | $ 1,670,000,000 | $ 1,600,000,000 | |
Defined contribution plan, also still accruing defined benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 2.00% | ||
Enhanced defined contribution plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 4.00% | ||
Defined contribution plan, employer fixed contribution (percent) | 2.00% |
Postretirement Benefit Plans - Expense Related to Defined Benefit and Retiree Health Care Benefit Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
U.S. | Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8 | $ 15 | $ 21 |
Interest cost | 28 | 29 | 30 |
Expected return on plan assets | (23) | (27) | (31) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Recognized net actuarial losses (gains) | 6 | 3 | 15 |
Net periodic benefit costs (credits) | 19 | 20 | 35 |
Settlement losses | 7 | 64 | 13 |
Total, including other postretirement losses (gains) | 26 | 84 | 48 |
U.S. | Retiree Health Care | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 3 | 3 |
Interest cost | 15 | 11 | 10 |
Expected return on plan assets | (19) | (12) | (9) |
Amortization of prior service cost (credit) | 0 | (2) | (2) |
Recognized net actuarial losses (gains) | (5) | 0 | 0 |
Net periodic benefit costs (credits) | (7) | 0 | 2 |
Settlement losses | 0 | 0 | 0 |
Total, including other postretirement losses (gains) | (7) | 0 | 2 |
Non-U.S. | Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 16 | 25 | 36 |
Interest cost | 57 | 33 | 37 |
Expected return on plan assets | (63) | (66) | (81) |
Amortization of prior service cost (credit) | 1 | 1 | 1 |
Recognized net actuarial losses (gains) | 12 | 1 | 7 |
Net periodic benefit costs (credits) | 23 | (6) | 0 |
Settlement losses | 0 | 10 | 2 |
Total, including other postretirement losses (gains) | $ 23 | $ 4 | $ 2 |
Postretirement Benefit Plans - Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Change in plan assets | |||
Funded status at end of year | $ 53 | $ 61 | |
U.S. | Defined Benefit | |||
Change in plan benefit obligation | |||
Benefit obligation at beginning of year: | 521 | 895 | |
Service cost | 8 | 15 | $ 21 |
Interest cost | 28 | 29 | 30 |
Participant contributions | 0 | 0 | |
Benefits paid | (13) | (12) | |
Settlements | (40) | (309) | |
Curtailments | 0 | 0 | |
Actuarial loss (gain) | 1 | (97) | |
Effects of exchange rate changes | 0 | 0 | |
Benefit obligation at end of year | 505 | 521 | 895 |
Change in plan assets | |||
Fair value of plan assets at beginning of year: | 421 | 934 | |
Actual return on plan assets | 47 | (205) | |
Participant contributions | 0 | 0 | |
Benefits paid | (13) | (12) | |
Settlements | (40) | (309) | |
Effects of exchange rate changes | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 418 | 421 | 934 |
Funded status at end of year | (87) | (100) | |
U.S. | Defined Benefit | Qualified Plan | |||
Change in plan assets | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | 0 | |
U.S. | Defined Benefit | Nonqualified Plan | |||
Change in plan assets | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 3 | 13 | |
U.S. | Retiree Health Care | |||
Change in plan benefit obligation | |||
Benefit obligation at beginning of year: | 274 | 360 | |
Service cost | 2 | 3 | 3 |
Interest cost | 15 | 11 | 10 |
Participant contributions | 14 | 15 | |
Benefits paid | (41) | (41) | |
Settlements | 0 | 0 | |
Curtailments | 0 | 0 | |
Actuarial loss (gain) | (6) | (74) | |
Effects of exchange rate changes | 0 | 0 | |
Benefit obligation at end of year | 258 | 274 | 360 |
Change in plan assets | |||
Fair value of plan assets at beginning of year: | 280 | 385 | |
Actual return on plan assets | 29 | (80) | |
Participant contributions | 14 | 15 | |
Benefits paid | (41) | (41) | |
Settlements | 0 | 0 | |
Effects of exchange rate changes | 0 | 0 | |
Other | (19) | 0 | |
Fair value of plan assets at end of year | 264 | 280 | 385 |
Funded status at end of year | 6 | 6 | |
U.S. | Retiree Health Care | Qualified Plan | |||
Change in plan assets | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 1 | 1 | |
U.S. | Retiree Health Care | Nonqualified Plan | |||
Change in plan assets | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | 0 | |
Non-U.S. | Defined Benefit | |||
Change in plan benefit obligation | |||
Benefit obligation at beginning of year: | 1,667 | 2,574 | |
Service cost | 16 | 25 | 36 |
Interest cost | 57 | 33 | 37 |
Participant contributions | 1 | 5 | |
Benefits paid | (77) | (86) | |
Settlements | (6) | (91) | |
Curtailments | 0 | (4) | |
Actuarial loss (gain) | 80 | (547) | |
Effects of exchange rate changes | (6) | (242) | |
Benefit obligation at end of year | 1,732 | 1,667 | 2,574 |
Change in plan assets | |||
Fair value of plan assets at beginning of year: | 1,822 | 2,813 | |
Actual return on plan assets | 137 | (557) | |
Participant contributions | 1 | 5 | |
Benefits paid | (77) | (86) | |
Settlements | (6) | (91) | |
Effects of exchange rate changes | (13) | (271) | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 1,866 | 1,822 | $ 2,813 |
Funded status at end of year | 134 | 155 | |
Non-U.S. | Defined Benefit | Qualified Plan | |||
Change in plan assets | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2 | 9 | |
Non-U.S. | Defined Benefit | Nonqualified Plan | |||
Change in plan assets | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 0 |
Postretirement Benefit Plans - Amounts Recognized on our Balance Sheet (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | $ 173 | $ 188 |
Accrued expenses and other liabilities & other long-term liabilities | (12) | (9) |
Underfunded retirement plans | (108) | (118) |
Funded status at end of year | 53 | 61 |
U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 0 | 0 |
Accrued expenses and other liabilities & other long-term liabilities | (5) | (3) |
Underfunded retirement plans | (82) | (97) |
Funded status at end of year | (87) | (100) |
U.S. | Retiree Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 8 | 8 |
Accrued expenses and other liabilities & other long-term liabilities | 0 | 0 |
Underfunded retirement plans | (2) | (2) |
Funded status at end of year | 6 | 6 |
Non-U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 165 | 180 |
Accrued expenses and other liabilities & other long-term liabilities | (7) | (6) |
Underfunded retirement plans | (24) | (19) |
Funded status at end of year | $ 134 | $ 155 |
Postretirement Benefit Plans - Schedule of Change in AOCI (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2023
USD ($)
| |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | $ 249 |
Adjustments, net actuarial loss | (36) |
Recognized within net income, net actuarial loss | (20) |
Tax effect, net actuarial loss | 14 |
Total change to AOCI, net actuarial loss | (42) |
AOCI balance, net actuarial loss portion (net of taxes), period end | 207 |
Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Prior Service Costs Portion Roll Forward | |
AOCI balance, net prior service cost (net of taxes), beginning of period | 1 |
Adjustments, prior service cost | 0 |
Recognized within net income, prior service cost | (1) |
Tax effect, prior service cost | 0 |
Total change to AOCI, prior service credit | (1) |
AOCI balance, net prior service cost (net of taxes), period end | 0 |
U.S. | Defined Benefit | |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 90 |
Adjustments, net actuarial loss | (23) |
Recognized within net income, net actuarial loss | (13) |
Tax effect, net actuarial loss | 8 |
Total change to AOCI, net actuarial loss | (28) |
AOCI balance, net actuarial loss portion (net of taxes), period end | 62 |
U.S. | Retiree Health Care | |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | (15) |
Adjustments, net actuarial loss | (17) |
Recognized within net income, net actuarial loss | 5 |
Tax effect, net actuarial loss | 3 |
Total change to AOCI, net actuarial loss | (9) |
AOCI balance, net actuarial loss portion (net of taxes), period end | (24) |
Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Prior Service Costs Portion Roll Forward | |
AOCI balance, net prior service cost (net of taxes), beginning of period | 0 |
Adjustments, prior service cost | 0 |
Recognized within net income, prior service cost | 0 |
Tax effect, prior service cost | 0 |
Total change to AOCI, prior service credit | 0 |
AOCI balance, net prior service cost (net of taxes), period end | 0 |
Non-U.S. | Defined Benefit | |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 174 |
Adjustments, net actuarial loss | 4 |
Recognized within net income, net actuarial loss | (12) |
Tax effect, net actuarial loss | 3 |
Total change to AOCI, net actuarial loss | (5) |
AOCI balance, net actuarial loss portion (net of taxes), period end | 169 |
Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Prior Service Costs Portion Roll Forward | |
AOCI balance, net prior service cost (net of taxes), beginning of period | 1 |
Adjustments, prior service cost | 0 |
Recognized within net income, prior service cost | (1) |
Tax effect, prior service cost | 0 |
Total change to AOCI, prior service credit | (1) |
AOCI balance, net prior service cost (net of taxes), period end | $ 0 |
Postretirement Benefit Plans - Plan Assets by Level Three Hierarchy (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|---|
U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $ 418 | $ 421 | $ 934 | ||
U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 264 | 280 | 385 | ||
Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,866 | 1,822 | $ 2,813 | ||
Other | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 418 | 421 | ||
Other | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 260 | 273 | ||
Other | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 1,707 | 1,669 | ||
Level 1 | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Level 1 | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4 | 7 | |||
Level 1 | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 106 | 92 | |||
Level 2 | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Level 2 | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Level 2 | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 53 | 61 | |||
Fixed income securities and cash equivalents | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 272 | 272 | |||
Fixed income securities and cash equivalents | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 210 | 182 | |||
Fixed income securities and cash equivalents | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,444 | 1,382 | |||
Fixed income securities and cash equivalents | Other | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 272 | 272 | ||
Fixed income securities and cash equivalents | Other | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 206 | 175 | ||
Fixed income securities and cash equivalents | Other | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 1,343 | 1,282 | ||
Fixed income securities and cash equivalents | Level 1 | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Fixed income securities and cash equivalents | Level 1 | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4 | 7 | |||
Fixed income securities and cash equivalents | Level 1 | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 49 | 40 | |||
Fixed income securities and cash equivalents | Level 2 | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Fixed income securities and cash equivalents | Level 2 | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Fixed income securities and cash equivalents | Level 2 | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 52 | 60 | |||
Equity securities | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 146 | 149 | |||
Equity securities | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 54 | 98 | |||
Equity securities | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 422 | 440 | |||
Equity securities | Other | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 146 | 149 | ||
Equity securities | Other | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 54 | 98 | ||
Equity securities | Other | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 364 | 387 | ||
Equity securities | Level 1 | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Equity securities | Level 1 | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Equity securities | Level 1 | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 57 | 52 | |||
Equity securities | Level 2 | U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Equity securities | Level 2 | U.S. | Retiree Health Care | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Equity securities | Level 2 | Non-U.S. | Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $ 1 | $ 1 | |||
|
Postretirement Benefit Plans - Weighted Average Assumptions Used (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
U.S. | Defined Benefit | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate (in percent) | 5.20% | 5.67% |
Long-term pay progression (in percent) | 3.00% | 3.75% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate (in percent) | 5.67% | 3.82% |
Long term rate of return on plan assets (in percent) | 5.70% | 3.80% |
Long-term pay progression (in percent) | 3.75% | 3.70% |
U.S. | Retiree Health Care | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate (in percent) | 5.17% | 5.68% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate (in percent) | 5.68% | 3.05% |
Long term rate of return on plan assets (in percent) | 5.70% | 3.40% |
Non-U.S. | Defined Benefit | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate (in percent) | 3.28% | 3.45% |
Long-term pay progression (in percent) | 3.12% | 3.03% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate (in percent) | 3.45% | 1.57% |
Long term rate of return on plan assets (in percent) | 3.50% | 2.73% |
Long-term pay progression (in percent) | 3.03% | 3.15% |
Postretirement Benefit Plans - Weighted Average Allocations (Details) |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Fixed income securities and cash equivalents | U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 65.00% | 65.00% |
Fixed income securities and cash equivalents | U.S. | Retiree Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 80.00% | 65.00% |
Fixed income securities and cash equivalents | Non-U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 77.00% | 76.00% |
Fixed income securities and cash equivalents | Minimum | U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 65.00% | |
Fixed income securities and cash equivalents | Minimum | U.S. | Retiree Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 75.00% | |
Fixed income securities and cash equivalents | Minimum | Non-U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 60.00% | |
Fixed income securities and cash equivalents | Maximum | U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 80.00% | |
Fixed income securities and cash equivalents | Maximum | U.S. | Retiree Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 85.00% | |
Fixed income securities and cash equivalents | Maximum | Non-U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 100.00% | |
Equity securities | U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 35.00% | 35.00% |
Equity securities | U.S. | Retiree Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 20.00% | 35.00% |
Equity securities | Non-U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 23.00% | 24.00% |
Equity securities | Minimum | U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 20.00% | |
Equity securities | Minimum | U.S. | Retiree Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 15.00% | |
Equity securities | Minimum | Non-U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 0.00% | |
Equity securities | Maximum | U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 35.00% | |
Equity securities | Maximum | U.S. | Retiree Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 25.00% | |
Equity securities | Maximum | Non-U.S. | Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 40.00% |
Postretirement Benefit Plans - Assumed Future Benefits Payments (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
---|---|
U.S. | Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 70 |
2025 | 72 |
2026 | 64 |
2027 | 62 |
2028 | 56 |
2029 – 2033 | 207 |
U.S. | Retiree Health Care | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 27 |
2025 | 25 |
2026 | 24 |
2027 | 23 |
2028 | 22 |
2029 – 2033 | 97 |
Non-U.S. | Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 88 |
2025 | 89 |
2026 | 92 |
2027 | 92 |
2028 | 95 |
2029 – 2033 | $ 501 |
Postretirement Benefit Plans - Health Care Cost Trend Rates (Details) - U.S. - Retiree Health Care |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed health care cost trend rate for next year (in percent) | 7.00% | 7.00% |
Ultimate trend rate (in percent) | 5.00% | 5.00% |
Year in which ultimate trend rate is reached | 2032 | 2031 |
Debt and Lines of Credit - Additional Information (Details) |
1 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
May 31, 2023
USD ($)
series
|
Mar. 31, 2023
USD ($)
series
|
Nov. 30, 2022
USD ($)
series
|
Aug. 31, 2022
USD ($)
series
|
Apr. 30, 2022
USD ($)
|
Feb. 28, 2021
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
series
|
|
Debt Instrument [Line Items] | ||||||||||
Commercial paper | $ 0 | |||||||||
Repayments of debt | 500,000,000 | $ 500,000,000 | $ 550,000,000 | |||||||
Proceeds from issuance of long-term debt | 3,000,000,000 | 1,494,000,000 | 1,495,000,000 | |||||||
Interest and debt expense | 353,000,000 | 214,000,000 | 184,000,000 | |||||||
Interest paid | 321,000,000 | 198,000,000 | 181,000,000 | |||||||
Interest costs capitalized | $ 11,000,000 | $ 6,000,000 | $ 8,000,000 | |||||||
Notes due 2028 at 4.60% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 4.60% | |||||||||
Notes due 2063 at 5.05% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 5.05% | |||||||||
Fixed One Point Eight Five Percent Notes Due Two Thousand And Twenty Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 500,000,000 | |||||||||
Notes due 2032 at 3.65% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 3.65% | |||||||||
Notes due 2052 at 4.10% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 4.10% | |||||||||
Notes due 2024 at 4.70% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 4.70% | |||||||||
Notes due 2021 at 2.75% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 550,000,000 | |||||||||
Notes due 2026 at 1.125% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 1.125% | |||||||||
Notes due 2031 at 1.90% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 1.90% | |||||||||
Notes due 2051 at 2.70% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt stated interest rate (in percentage) | 2.70% | |||||||||
Notes due 2023 at 2.25% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 500,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 2.25% | |||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of series of debt issued | series | 3 | 2 | 2 | 2 | 3 | |||||
Principal amount | $ 1,600,000,000 | $ 1,400,000,000 | $ 800,000,000 | $ 700,000,000 | $ 1,500,000,000 | |||||
Debt issuance costs | 7,000,000 | 11,000,000 | 3,000,000 | 3,000,000 | 10,000,000 | |||||
Proceeds from issuance of long-term debt | 1,600,000,000 | 1,400,000,000 | 799,000,000 | 695,000,000 | ||||||
Senior Notes | Fixed Four Point Nine Zero Percent Notes Due 2033 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 200,000,000 | $ 750,000,000 | ||||||||
Long-term debt stated interest rate (in percentage) | 4.90% | 4.90% | ||||||||
Senior Notes | Fixed Five Point Zero Zero Percent Notes Due 2053 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 650,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 5.00% | |||||||||
Senior Notes | Notes due 2028 at 4.60% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 200,000,000 | $ 500,000,000 | ||||||||
Long-term debt stated interest rate (in percentage) | 4.60% | 4.60% | ||||||||
Senior Notes | Notes due 2063 at 5.05% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 1,200,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 5.05% | |||||||||
Senior Notes | Notes due 2032 at 3.65% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 400,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 3.65% | |||||||||
Senior Notes | Notes due 2052 at 4.10% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 300,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 4.10% | |||||||||
Senior Notes | Notes due 2024 at 4.70% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 300,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 4.70% | |||||||||
Senior Notes | Notes due 2026 at 1.125% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 1.125% | |||||||||
Senior Notes | Notes due 2031 at 1.90% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 1.90% | |||||||||
Senior Notes | Notes due 2051 at 2.70% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Long-term debt stated interest rate (in percentage) | 2.70% | |||||||||
Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 |
Debt and Lines of Credit - Schedule of Long-term Debt Outstanding (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 11,300 | $ 8,800 |
Net unamortized discounts, premiums and issuance costs | (77) | (65) |
Total debt, including net unamortized discounts, premiums and issuance costs | 11,223 | 8,735 |
Current portion of long-term debt | (599) | (500) |
Long-term debt | $ 10,624 | 8,235 |
Notes due 2023 at 2.25% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.25% | |
Total debt | $ 0 | 500 |
Notes due 2024 at 2.625% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.625% | |
Total debt | $ 300 | 300 |
Notes due 2024 at 4.70% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 4.70% | |
Total debt | $ 300 | 300 |
Notes due 2025 at 1.375% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 1.375% | |
Total debt | $ 750 | 750 |
Notes due 2026 at 1.125% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 1.125% | |
Total debt | $ 500 | 500 |
Notes due 2027 at 2.90% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.90% | |
Total debt | $ 500 | 500 |
Notes due 2028 at 4.60% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 4.60% | |
Total debt | $ 700 | 500 |
Notes due 2029 at 2.25% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.25% | |
Total debt | $ 750 | 750 |
Notes due 2030 at 1.75% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 1.75% | |
Total debt | $ 750 | 750 |
Notes due 2031 at 1.90% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 1.90% | |
Total debt | $ 500 | 500 |
Notes due 2032 at 3.65% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 3.65% | |
Total debt | $ 400 | 400 |
Notes due 2033 at 4.90% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 4.90% | |
Total debt | $ 950 | 0 |
Notes due 2039 at 3.875% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 3.875% | |
Total debt | $ 750 | 750 |
Notes due 2048 at 4.15% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 4.15% | |
Total debt | $ 1,500 | 1,500 |
Notes due 2051 at 2.70% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 2.70% | |
Total debt | $ 500 | 500 |
Notes due 2052 at 4.10% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 4.10% | |
Total debt | $ 300 | 300 |
Notes due 2053 at 5.00% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 5.00% | |
Total debt | $ 650 | 0 |
Notes due 2063 at 5.05% | ||
Debt Instrument [Line Items] | ||
Long-term debt stated interest rate (in percentage) | 5.05% | |
Total debt | $ 1,200 | $ 0 |
Leases - Component of Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Other long-term assets | $ 579 | $ 431 |
Accrued expenses and other liabilities | $ 88 | $ 75 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other long-term assets | Other long-term assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Other long-term liabilities | $ 478 | $ 344 |
Leases - Schedule of Operating Leases (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Leases [Abstract] | |||
Lease cost related to lease liabilities | $ 73 | $ 67 | $ 69 |
Variable lease cost | 54 | 46 | 56 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for lease cost | 65 | 61 | 61 |
Lease assets obtained in exchange for new lease liabilities | $ 285 | $ 37 | $ 210 |
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
2024 | $ 94 | |
2025 | 77 | |
2026 | 69 | |
2027 | 60 | |
2028 | 52 | |
Thereafter | 378 | |
Total | 730 | |
Imputed lease interest | (164) | |
Total lease liabilities | $ 566 | |
Weighted average remaining lease term | 11 years 8 months 12 days | 8 years 9 months 18 days |
Weighted average discount rate | 4.22% | 2.71% |
Commitments and Contingencies (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
---|---|
Purchase Commitments | |
2024 | $ 626 |
2025 | 337 |
2026 | 312 |
2027 | 247 |
2028 | 131 |
Thereafter | 215 |
Total | $ 1,868 |
Supplemental financial information - Restructuring charges and other (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2021 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||
Integration charges | [1] | $ 0 | $ 257 | $ 104 | |||||||
Gains on sales of assets | $ (50) | 0 | [2] | 0 | [2] | (50) | [2] | ||||
Restructuring charges/other | $ 0 | $ 257 | $ 54 | ||||||||
|
Supplemental financial information - Other income (expense), net (OI&E) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|||||
Disclosure Text Block Supplement [Abstract] | |||||||
Other income | [1] | $ 483 | $ 169 | $ 145 | |||
Other expense | [2] | (43) | (63) | (2) | |||
Total | $ 440 | $ 106 | $ 143 | ||||
|
Supplemental Financial Information - Prepaid expenses and other current assets (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Income and Expenses [Abstract] | ||
U.S. CHIPS and Science Act investment tax credit | $ 497 | $ 0 |
Other | 264 | 302 |
Total | $ 761 | $ 302 |
Supplemental financial information - Property, plant and equipment at cost (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 13,268 | $ 9,950 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | 150 | 132 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 5,549 | 4,154 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 5 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 40 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 7,569 | $ 5,664 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 10 years |
Supplemental financial information - Schedule of Goodwill (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Goodwill [Line Items] | |||
Goodwill | $ 4,362 | $ 4,362 | |
Goodwill impairment loss | 0 | 0 | $ 0 |
Analog | |||
Goodwill [Line Items] | |||
Goodwill | 4,158 | 4,158 | |
Embedded Processing | |||
Goodwill [Line Items] | |||
Goodwill | 172 | 172 | |
Other | |||
Goodwill [Line Items] | |||
Goodwill | $ 32 | $ 32 |
Supplemental Financial Information - Other long term assets (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Income and Expenses [Abstract] | ||
U.S. CHIPS and Science Act investment tax credit | $ 859 | $ 395 |
Other | 853 | 740 |
Total | $ 1,712 | $ 1,135 |
Supplemental financial information - Accrued expenses (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Disclosure Text Block Supplement [Abstract] | ||
Accrued capital-related expenditures | $ 341 | $ 191 |
Other | 570 | 455 |
Total | $ 911 | $ 646 |
Supplemental financial information - Accumulated other comprehensive income (loss), net of taxes (AOCI) (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | $ 16,897 | $ 14,577 | ||
AOCI | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | (205) | (254) | $ (157) | $ (360) |
Net actuarial loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | (207) | (249) | ||
Prior service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | 0 | (1) | ||
Unrealized gains (losses) on available-for-sale investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | 2 | (3) | ||
Derivative instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | $ 0 | $ (1) |
Supplemental financial information - Amounts reclassified out of accumulated other comprehensive income (loss), net of taxes, to net income (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income (expense), net (OI&E) | $ 440 | $ 106 | $ 143 | ||
Provision for income taxes | (908) | (1,283) | (1,150) | ||
Net income | 6,510 | 8,749 | 7,769 | ||
Reclassification out of Accumulated Other Comprehensive Income | Net actuarial losses of defined benefit plans: | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income (expense), net (OI&E) | [1] | 20 | 78 | 37 | |
Provision for income taxes | (5) | (17) | (8) | ||
Net income | 15 | 61 | 29 | ||
Reclassification out of Accumulated Other Comprehensive Income | Prior service cost (credit) of defined benefit plans: | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income (expense), net (OI&E) | [1] | 1 | (1) | (1) | |
Provision for income taxes | 0 | 0 | 0 | ||
Net income | $ 1 | $ (1) | $ (1) | ||
|
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