What were the key factors behind NXP's income tax expense reduction in Q4 2024?

NXP Semiconductors experienced a reduction in income tax expense in Q4 2024, which can be attributed to several key factors: 1. **Interim Dividend Declaration**: NXP declared an interim dividend of $1.014 per ordinary share for the first quarter of 2025, which is scheduled to be distributed in cash on April 9, 2025. Dividend payments are subject to Dutch dividend withholding tax at a rate of 15%, which may be reduced under certain conditions. The reduction in income tax expense could be due to the tax implications of this dividend declaration. 2. **Foreign Tax Credits**: NXP may have benefited from foreign tax credits, which allow a corporation to credit against their U.S. tax liability the income tax paid to foreign jurisdictions. This can reduce the overall income tax expense for the period. In conclusion, NXP's income tax expense reduction in Q4 2024 was likely a result of a combination of factors including the declaration of an interim dividend and foreign tax credits.