Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Trading Symbol | 'STM |
Entity Registrant Name | 'STMICROELECTRONICS NV |
Entity Central Index Key | '0000932787 |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'Yes |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 890,606,763 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $8,050 | $8,380 | $9,630 |
Other revenues | 32 | 113 | 105 |
Net revenues | 8,082 | 8,493 | 9,735 |
Cost of sales | -5,468 | -5,710 | -6,161 |
Gross profit | 2,614 | 2,783 | 3,574 |
Selling, general and administrative | -1,066 | -1,166 | -1,210 |
Research and development | -1,816 | -2,413 | -2,352 |
Other income and expenses, net | 95 | 91 | 109 |
Impairment, restructuring charges and other related closure costs | -292 | -1,376 | -75 |
Operating income (loss) | -465 | -2,081 | 46 |
Other-than-temporary impairment charge and realized gains on financial assets | ' | ' | 318 |
Interest expense, net | -5 | -35 | -25 |
Loss on equity-method investments | -122 | -24 | -28 |
Gain on financial instruments, net | ' | 3 | 25 |
Income (loss) before income taxes and noncontrolling interest | -592 | -2,137 | 336 |
Income tax expense | -37 | -51 | -181 |
Net income (loss) | -629 | -2,188 | 155 |
Net loss (income) attributable to noncontrolling interest | 129 | 1,030 | 495 |
Net income (loss) attributable to parent company | ($500) | ($1,158) | $650 |
Earnings per share (Basic) attributable to parent company stockholders | ($0.56) | ($1.31) | $0.74 |
Earnings per share (Diluted) attributable to parent company stockholders | ($0.56) | ($1.31) | $0.72 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | ($629) | ($2,188) | $155 |
Other comprehensive income (loss), net of tax : | ' | ' | ' |
Currency translation adjustments arising during the period | 103 | 64 | -106 |
Foreign currency translation adjustments | 103 | 64 | -106 |
Unrealized gains (losses) arising during the period | 1 | 6 | ' |
Less : reclassification adjustment for (income) losses included in net income (loss) | ' | ' | -33 |
Unrealized gains (losses) on securities | 1 | 6 | -33 |
Unrealized gains (losses) arising during the period | 36 | 30 | -13 |
Less : reclassification adjustment for (income) losses included in net income (loss) | -29 | 59 | -112 |
Unrealized gains (losses) on derivatives | 7 | 89 | -125 |
Prior service cost arising during the period | -5 | -4 | ' |
Net gains (losses) arising during the period | 74 | -20 | -72 |
Less : amortization of prior service cost included in net periodic pension cost | 5 | 5 | 1 |
Defined benefit pension plans | 74 | -19 | -71 |
Other comprehensive income (loss), net of tax | 185 | 140 | -335 |
Comprehensive income (loss) | -444 | -2,048 | -180 |
Less : comprehensive income (loss) attributable to noncontrolling interest | -134 | -1,014 | -521 |
Comprehensive income (loss) attributable to the company's stockholders | ($310) | ($1,034) | $341 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets : | ' | ' |
Cash and cash equivalents | $1,836 | $2,250 |
Short-term deposits | 1 | 1 |
Marketable securities | 57 | 238 |
Trade accounts receivable, net | 1,049 | 1,005 |
Inventories | 1,336 | 1,353 |
Deferred tax assets | 123 | 137 |
Assets held for sale | 16 | ' |
Other current assets | 389 | 518 |
Total current assets | 4,807 | 5,502 |
Goodwill | 90 | 141 |
Other intangible assets, net | 217 | 213 |
Property, plant and equipment, net | 3,156 | 3,481 |
Non-current deferred tax assets | 227 | 414 |
Restricted cash | ' | 4 |
Long-term investments | 76 | 119 |
Other non-current assets | 600 | 560 |
Total non-current assets | 4,366 | 4,932 |
Total assets | 9,173 | 10,434 |
Current liabilities: | ' | ' |
Short-term debt | 225 | 630 |
Trade accounts payable | 694 | 797 |
Other payables and accrued liabilities | 937 | 942 |
Dividends payable to stockholders | 89 | 89 |
Deferred tax liabilities | ' | 11 |
Accrued income tax | 48 | 86 |
Total current liabilities | 1,993 | 2,555 |
Long-term debt | 928 | 671 |
Post-employment benefit obligations | 366 | 477 |
Long-term deferred tax liabilities | 11 | 14 |
Other long-term liabilities | 158 | 353 |
Total non-current liabilities | 1,463 | 1,515 |
Total liabilities | 3,456 | 4,070 |
Commitment and contingencies | ' | ' |
Parent company stockholders' equity | ' | ' |
Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 910,703,305 shares issued, 890,606,763 shares outstanding) | 1,156 | 1,156 |
Capital surplus | 2,581 | 2,555 |
Retained earnings | 1,076 | 1,959 |
Accumulated other comprehensive income | 1,042 | 794 |
Treasury stock | -212 | -239 |
Total parent company stockholders' equity | 5,643 | 6,225 |
Noncontrolling interest | 74 | 139 |
Total equity | 5,717 | 6,364 |
Total liabilities and equity | $9,173 | $10,434 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (EUR €) | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 22, 2007 |
Statement Of Financial Position [Abstract] | ' | ' | ' |
Preferred stock, shares authorized | 540,000,000 | 540,000,000 | 540,000,000 |
Preferred stock, shares issued | 0 | 0 | ' |
Common stock, nominal value | € 1.04 | € 1.04 | ' |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 | ' |
Common stock, shares issued | 910,703,305 | 910,559,805 | ' |
Common stock, shares outstanding | 890,606,763 | 887,953,202 | ' |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock [Member] | Capital Surplus [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2010 | $8,497 | $1,156 | $2,515 | ($304) | $3,241 | $979 | $910 |
Stock-based compensation expense | 29 | ' | 29 | 33 | -33 | ' | ' |
Business combination | 9 | ' | ' | ' | ' | ' | 9 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 155 | ' | ' | ' | 650 | ' | -495 |
Other comprehensive income (loss), net of tax | -335 | ' | ' | ' | ' | -309 | -26 |
Comprehensive income (loss) | -180 | ' | ' | ' | ' | ' | -521 |
Dividends to noncontrolling interest | -5 | ' | ' | ' | ' | ' | -5 |
Dividends | -354 | ' | ' | ' | -354 | ' | ' |
Ending Balance at Dec. 31, 2011 | 7,996 | 1,156 | 2,544 | -271 | 3,504 | 670 | 393 |
Stock-based compensation expense | 11 | ' | 11 | 32 | -32 | ' | ' |
Contribution of noncontrolling interest | 765 | ' | ' | ' | ' | ' | 765 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -2,188 | ' | ' | ' | -1,158 | ' | -1,030 |
Other comprehensive income (loss), net of tax | 140 | ' | ' | ' | ' | 124 | 16 |
Comprehensive income (loss) | -2,048 | ' | ' | ' | ' | ' | -1,014 |
Dividends to noncontrolling interest | -5 | ' | ' | ' | ' | ' | -5 |
Dividends | -355 | ' | ' | ' | -355 | ' | ' |
Ending Balance at Dec. 31, 2012 | 6,364 | 1,156 | 2,555 | -239 | 1,959 | 794 | 139 |
Stock-based compensation expense | 26 | ' | 26 | 27 | -27 | ' | ' |
Joint ventures deconsolidation | 131 | ' | ' | ' | ' | 58 | 73 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -629 | ' | ' | ' | -500 | ' | -129 |
Other comprehensive income (loss), net of tax | 185 | ' | ' | ' | ' | 190 | -5 |
Comprehensive income (loss) | -444 | ' | ' | ' | ' | ' | -134 |
Dividends to noncontrolling interest | -4 | ' | ' | ' | ' | ' | -4 |
Dividends | -356 | ' | ' | ' | -356 | ' | ' |
Ending Balance at Dec. 31, 2013 | $5,717 | $1,156 | $2,581 | ($212) | $1,076 | $1,042 | $74 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (Common Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Dividends, per share | $0.40 | $0.40 | $0.40 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($629) | ($2,188) | $155 |
Items to reconcile net income (loss) and cash flows from operating activities: | ' | ' | ' |
Depreciation and amortization | 910 | 1,107 | 1,279 |
Other-than-temporary impairment charge and realized gains on financial assets | ' | ' | -318 |
Gain on financial instruments, net | ' | -3 | -25 |
Gain on sale of businesses | -80 | ' | ' |
Non-cash stock-based compensation | 26 | 11 | 29 |
Other non-cash items | -113 | -65 | -151 |
Deferred income tax | -48 | -80 | 47 |
Loss on equity-method investments | 122 | 24 | 28 |
Impairment, restructuring charges and other related closure costs, net of cash payments | 145 | 1,303 | -79 |
Changes in assets and liabilities: | ' | ' | ' |
Trade receivables, net | -57 | 35 | 184 |
Inventories | -22 | 191 | -59 |
Trade payables | -139 | 148 | -384 |
Other assets and liabilities, net | 251 | 129 | 174 |
Net cash from operating activities | 366 | 612 | 880 |
Cash flows from investing activities: | ' | ' | ' |
Payment for purchase of tangible assets | -543 | -492 | -1,284 |
Proceeds from sale of tangible assets | 12 | 16 | 26 |
Payment for purchase of marketable securities | ' | -450 | -352 |
Proceeds from sale of marketable securities | 184 | 630 | 818 |
Proceeds from settlement of non-current marketable securities | ' | ' | 350 |
Proceeds from matured short-term deposits | ' | ' | 73 |
Restricted cash | ' | ' | -95 |
Release of restricted cash | 3 | 3 | 87 |
Net cash variation for joint ventures deconsolidation | -21 | ' | ' |
Payment for funding of joint ventures liquidation | -15 | ' | ' |
Payment for purchase of intangible and financial assets | -92 | -117 | -95 |
Proceeds from sale of intangible and financial assets | 1 | 15 | ' |
Net proceeds from sale of stock received on investment divestiture | ' | ' | 195 |
Proceeds received in sale of businesses | 92 | ' | ' |
Payment for business acquisitions, net of cash and cash equivalents acquired | ' | -1 | -10 |
Net cash used in investing activities | -379 | -396 | -287 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from long-term debt | 477 | 464 | 3 |
Proceeds from short-term borrowings | 145 | 390 | 333 |
Repurchase / repayment of issued debt | -455 | -219 | -422 |
Repayment of long-term debt | -166 | -109 | -108 |
Repayment of short-term borrowings | -35 | -20 | -8 |
Increase (decrease) in short-term facilities | ' | -7 | 7 |
Dividends paid to stockholders | -346 | -355 | -327 |
Dividends paid to noncontrolling interests | -4 | -5 | -5 |
Other financing activities | -4 | -4 | -2 |
Net cash from (used in) financing activities | -388 | 135 | -529 |
Effect of changes in exchange rates | -13 | -13 | -44 |
Net cash increase (decrease) | -414 | 338 | 20 |
Cash and cash equivalents at beginning of the period | 2,250 | 1,912 | 1,892 |
Cash and cash equivalents at end of the period | 1,836 | 2,250 | 1,912 |
Supplemental cash information: | ' | ' | ' |
Interest paid | 10 | 26 | 17 |
Income tax paid | $23 | $51 | $83 |
The_Company
The Company | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
The Company | ' | |
1 | THE COMPANY | |
STMicroelectronics N.V. (the “Company”) is registered in The Netherlands with its corporate legal seat in Amsterdam, the Netherlands, and its corporate headquarters located in Geneva, Switzerland. | ||
The Company is a global independent semiconductor company that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (“ICs”) and discrete devices. The Company offers a diversified product portfolio and develops products for a wide range of market applications, including automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation and control systems. Within its diversified portfolio, the Company is focused on developing products that leverage its technological strengths in creating customized, system-level solutions with digital and mixed-signal content. |
Accounting_Policies
Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Accounting Policies | ' | ||||||||||||
2 | ACCOUNTING POLICIES | ||||||||||||
The accounting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). All balances and values in the current and prior periods are in millions of U.S. dollars, except share and per-share amounts. Under Article 35 of the Company’s Articles of Association, the financial year extends from January 1 to December 31, which is the period-end of each fiscal year. | |||||||||||||
2.1 – Principles of consolidation | |||||||||||||
The Company’s consolidated financial statements include the assets, liabilities, results of operations and cash flows of its majority-owned subsidiaries. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Intercompany balances and transactions have been eliminated in consolidation. In compliance with U.S. GAAP, the Company assesses for consolidation any entity identified as a Variable Interest Entity (“VIE”) and consolidates any VIEs, for which the Company is determined to be the primary beneficiary, as described in Note 2.9. | |||||||||||||
When the Company owns some, but not all, of the voting stock of a consolidated entity, the shares held by third parties represent a noncontrolling interest. The consolidated financial statements are prepared based on the total amount of assets and liabilities and income and expenses of the consolidated subsidiaries. However, the portion of these items that does not belong to the Company is reported on the line “Noncontrolling interest” in the consolidated financial statements. | |||||||||||||
2.2 – Use of estimates | |||||||||||||
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. The primary areas that require significant estimates and judgments by management include, but are not limited to: | |||||||||||||
• | sales returns and allowances, | ||||||||||||
• | determination of the best estimate of the selling price for deliverables in multiple element sale arrangements, | ||||||||||||
• | inventory obsolescence reserves and normal manufacturing capacity thresholds to determine costs capitalized in inventory, | ||||||||||||
• | provisions for litigation and claims and recognition and measurement of loss contingencies, | ||||||||||||
• | valuation at fair value of assets acquired or sold, including intangibles, goodwill, investments and tangible assets, | ||||||||||||
• | annual and trigger-based impairment review of goodwill and intangible assets, as well as an assessment, in each reporting period, of events, which could trigger interim impairment testing on long-lived assets, | ||||||||||||
• | estimated value of the consideration to be received and used as fair value for asset groups classified as assets held for sale and the assessment of probability of realizing the sale, | ||||||||||||
• | assessment of other-than-temporary impairment charges on financial assets, including equity-method investments, | ||||||||||||
• | restructuring charges and other related exit costs, | ||||||||||||
• | assumptions used in assessing the number of awards expected to vest on stock-based compensation plans, | ||||||||||||
• | assumptions used in calculating pension obligations, and | ||||||||||||
• | determination of the amount of taxes expected to be paid and tax benefit expected to be received, including deferred income tax assets, valuation allowance and provisions for uncertain tax positions and claims. | ||||||||||||
The Company bases the estimates and assumptions on historical experience and on various other factors such as market trends, market information used by market participants and the latest available business plans that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. While the Company regularly evaluates its estimates and assumptions, the actual results experienced by the Company could differ materially and adversely from those estimates. To the extent there are material differences between the estimates and the actual results, future results of operations, cash flows and financial position could be significantly affected. | |||||||||||||
2.3 – Foreign currency | |||||||||||||
The U.S. dollar is the reporting currency of the Company. The U.S. dollar is the currency of the primary economic environment in which the Company operates since the worldwide semiconductor industry uses the U.S. dollar as a currency of reference for actual pricing in the market. Furthermore, the majority of the Company’s transactions are denominated in U.S. dollars, and revenues from external sales in U.S. dollars largely exceed revenues in any other currency. However, labor costs are concentrated primarily in the countries of the Euro zone. | |||||||||||||
The functional currency of each subsidiary of the Company is either the local currency or the U.S. dollar, depending on the basis of the economic environment in which each subsidiary operates. Foreign currency transactions, including operations in local currency when the U.S. dollar is the functional currency, are measured into the functional currency using the period average exchange rate. Foreign exchange gains and losses resulting from the translation at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statements of income on the line “Other income and expenses, net”. | |||||||||||||
For consolidation purposes, the results and financial position of the subsidiaries whose functional currency is different from the U.S. dollar are translated into the reporting currency as follows: | |||||||||||||
(a) | assets and liabilities for each consolidated balance sheet presented are translated at the closing exchange rate as of the balance sheet date; | ||||||||||||
(b) | income and expenses for each consolidated statement of income presented are translated at the monthly average exchange rate; | ||||||||||||
(c) | the resulting exchange differences are reported as Currency Translation Adjustments (“CTA”), a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income. | ||||||||||||
2.4 – Cash and cash equivalents | |||||||||||||
Cash and cash equivalents includes cash on hand, deposits held at call with external financial institutions and other short-term highly liquid investments with original maturities of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Bank overdrafts are not netted against cash and cash equivalents and are shown as part of current liabilities on the consolidated balance sheets. | |||||||||||||
2.5 – Trade accounts receivable | |||||||||||||
Trade accounts receivable are amounts due from customers for goods sold and services rendered to third parties in the ordinary course of business. They are recognized at their billing value, net of allowances for doubtful accounts. The Company maintains an allowance for doubtful accounts for potential estimated losses resulting from its customers’ inability to make required payments. The Company bases its estimates on historical collection trends and records an allowance accordingly. Additionally, the Company evaluates its customers’ financial condition periodically and records an allowance for any specific account it considers as doubtful. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the charge is recognized on the line “Selling, general and administrative” in the consolidated statements of income. Subsequent recoveries, if any, of amounts previously provided for are credited against the same line in the consolidated statements of income. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivable. | |||||||||||||
In the event of sales of receivables such as factoring, the Company derecognizes the receivables and accounts for them as a sale only to the extent that the Company has surrendered control over the receivables in exchange for a consideration other than beneficial interest in the transferred receivables. | |||||||||||||
2.6 – Inventories | |||||||||||||
Inventories are stated at the lower of cost or market value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the excess capacity are not included in the valuation of inventories but charged directly to cost of sales. Market value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses and cost of completion. | |||||||||||||
The Company performs, on a continuous basis, inventory write-offs of products, which have the characteristics of slow-moving, old production date and technical obsolescence. Indeed, the Company evaluates its product inventory to identify obsolete or slow-selling stock and records a specific reserve if the Company estimates the inventory will eventually become obsolete. Reserve for obsolescence is estimated for excess uncommitted inventory based on the previous quarter sales, order backlog and production plans. | |||||||||||||
2.7 – Current and deferred income tax | |||||||||||||
Income tax for the period comprises current and deferred income tax. Current income tax represents the income tax expected to be paid or the tax benefit expected to be received related to the current year taxable profit and loss in each individual tax jurisdiction. Deferred income tax is recognized, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the consolidated financial statements. However deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit and loss. Deferred income tax is determined using tax rates and laws that are enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect on deferred tax assets and liabilities from changes in tax laws and tax rates is recognized in earnings in the period in which the law is enacted. Deferred income tax assets are recognized in full, but the Company assesses whether future taxable profit will be available against which temporary differences can be utilized. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, is presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, in application of the new guidance relating to the presentation in the financial statements of unrecognized tax benefits when these types of tax credits or carryforward exist, as described in Note 2.24. A valuation allowance is provided for deferred tax assets when management considers it is more likely than not that they will not be realized. | |||||||||||||
The Company recognizes a deferred tax liability on undistributed earnings of subsidiaries when there is a presumption that the earnings will be remitted to the parent. This presumption is overcome only if the Company can demonstrate that the earnings will be permanently reinvested. A deferred tax asset is recognized on compensation for the grant of stock awards to the extent that such charge constitutes a temporary difference in the subsidiaries’ local tax jurisdictions. Changes in the stock price do not impact the deferred tax asset and do not result in any adjustments prior to vesting. When the actual tax deduction is determined, generally upon vesting, it is compared to the deferred tax asset as recognized over the vesting period. When a windfall tax benefit is determined (as the excess tax benefit of the actual tax deduction over the deferred tax asset) the excess tax benefit is recorded in equity on the line “Capital surplus” on the consolidated statements of equity. In case of shortfall, only the actual tax benefit is to be recognized in the consolidated financial statements. The Company writes off the deferred tax asset at the level of the actual tax deduction by charging first capital surplus to the extent of the pool of windfall benefits available from prior years, and then earnings. When the settlement of an award results in a net operating loss (“NOL”) carryforward, or increase of existing NOLs, the excess tax benefit and the corresponding credit to capital surplus is not recorded until the deduction reduces income tax payable. | |||||||||||||
At each reporting date, the Company assesses all material open income tax positions in all tax jurisdictions to determine any uncertain tax positions. The Company uses a two-step process for the evaluation of uncertain tax positions. The first step consists of determining whether a benefit may be recognized; the assessment is based on a more-likely-than-not recognition threshold. If the sustainability is lower than 50%, a full provision should be accounted for. In case of a sustainability threshold in step one higher than 50%, the Company must perform a second step in order to measure the amount of recognizable tax benefit, net of any liability for tax uncertainties. The measurement methodology in step two is based on a “cumulative probability” approach, resulting in the recognition of the largest amount that is greater than 50% likely of being realized upon settlement with the taxing authority. As described in Note 2.24, the unrecognized tax benefit is recorded as a reduction of a deferred tax asset to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of the tax position. The Company accrues for interest and penalties on uncertain tax liabilities reported on the consolidated balance sheets. Interests and penalties are classified as components of income tax expense in its consolidated statements of income. | |||||||||||||
2.8 – Assets held for sale | |||||||||||||
Assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. The assets are classified as assets held for sale when the following conditions have been met: management has approved the plan to sell; assets are available for immediate sale; assets are actively being marketed; sale is probable within one year; price is reasonable in the market and it is unlikely that there will be significant changes in the assets to be sold or a withdrawal to the plan to sell. Assets classified as held for sale are reported as current assets at the lower of their carrying amount and fair value less costs to sell. Costs to sell include incremental direct costs to transact the sale that would not have been incurred except for the decision to sell. Depreciation is not charged on long-lived assets classified as held for sale. When the held-for-sale accounting treatment requires an impairment charge for the difference between the carrying amount and fair value, such impairment is reflected on the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs”. If the long-lived assets no longer meet the held-for-sale model, they are reported as assets held and used and thus reclassified from current assets to the line “Property, plant and equipment, net” in the consolidated balance sheets. The assets are measured at the lower of their fair value at the date of the subsequent decision not to sell and their carrying amount prior to their classification as assets held for sale, adjusted for any depreciation that would have been recognized if the long-lived assets had not been classified as assets held for sale. | |||||||||||||
2.9 – Business combinations and goodwill | |||||||||||||
The Company assesses each investment in equity securities to determine whether the investee is a Variable Interest Entity (“VIE”). The Company consolidates the VIEs for which the Company is determined to be the primary beneficiary. The primary beneficiary of a VIE is the party that: (i) has the power to direct the most significant activities of the VIE and (ii) is obligated to absorb losses or has the rights to receive returns that would be considered significant to the VIE. Assets, liabilities, and the noncontrolling interest of newly consolidated VIEs are initially measured at fair value in the same manner as if the consolidation resulted from a business combination. | |||||||||||||
The purchase accounting method is applied to all business combinations. The identifiable assets acquired, equity instruments issued, and liabilities assumed are measured at fair value on the acquisition date. Any contingent purchase price and acquired contingencies are recorded at fair value on the acquisition date. Acquisition-related transaction costs and restructuring costs relating to the acquired business are expensed as incurred. Acquired in-process research and development (“IPR&D”) is capitalized and recorded as an intangible asset on the acquisition date, subject to impairment testing until the research or development is completed or abandoned. The excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed is recorded as goodwill. In case of a bargain purchase, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed; the noncontrolling interest in the acquiree, if any; the Company’s previously held equity interest in the acquiree, if any; and the consideration transferred. If after this review, a bargain purchase is still indicated, it is recognized in earnings attributed to the Company. The purchase of additional interests in a partially owned subsidiary is treated as an equity transaction as well as all transactions concerning the sale of subsidiary stock or the issuance of stock by the partially owned subsidiary as long as there is no change in control of the subsidiary. If as a consequence of selling subsidiary shares, the Company no longer controls the subsidiary, the Company recognizes a gain or loss in earnings. | |||||||||||||
Goodwill represents the excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized but is tested annually for impairment, or more frequently if indicators of impairment exist. Goodwill subject to potential impairment is tested at a reporting unit level, after performing a “qualitative” assessment to determine whether impairment testing is necessary, in cases where the Company has elected to apply such option. The impairment test determines whether the fair value of each reporting unit for which goodwill is allocated is lower than the total carrying amount of relevant net assets allocated to such reporting unit, including its allocated goodwill. If lower, the implied fair value of the reporting unit goodwill is then compared to the carrying value of the goodwill and an impairment charge is recognized for any excess. In determining the fair value of a reporting unit, the Company uses a market approach with financial metrics of comparable public companies and estimates the expected discounted future cash flows associated with the reporting unit. Significant management judgments and estimates are used in forecasting the future discounted cash flows, including: the applicable industry’s sales volume forecast and selling price evolution, the reporting unit’s market penetration and its revenues evolution, the market acceptance of certain new technologies and products, the relevant cost structure, the discount rates applied using a weighted average cost of capital and the perpetuity rates used in calculating cash flow terminal values. | |||||||||||||
2.10 – Intangible assets with finite useful lives | |||||||||||||
Intangible assets subject to amortization include the intangible assets purchased from third parties recorded at cost and intangible assets acquired in business combinations recorded at fair value, which include trademarks, technologies and licenses, contractual customer relationships and computer software. Amortization begins when the intangible asset is available for use and is calculated using the straight-line method to allocate the cost of the intangible assets over the estimated useful lives. | |||||||||||||
Trademarks, technologies and licenses | |||||||||||||
Separately acquired trademarks and licenses are recorded at historical cost. Trademarks and licenses acquired in a business combination are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life which ranges from 3 to 7 years and are carried at cost less accumulated amortization and impairment losses, if any. | |||||||||||||
Computer software | |||||||||||||
Separately acquired computer software is recorded at historical cost. Costs associated with maintaining computer software programs are expensed in the consolidated statements of income as incurred. The capitalization of costs for internally generated software developed by the Company for its internal use begins when the preliminary project stage is completed and when the Company, implicitly or explicitly, authorizes and commits to funding a computer software project. It must be probable that the project will be completed and will be used to perform the function intended. Amortization on computer software begins when the software is available for use and is calculated using the straight-line method over the estimated useful life, which does not exceed 4 years. | |||||||||||||
The carrying value of intangible assets with finite useful lives is evaluated whenever changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in the consolidated statements of income for the amount by which the asset’s carrying amount exceeds its fair value. The Company evaluates the remaining useful life of an intangible asset at each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. | |||||||||||||
2.11 – Property, plant and equipment | |||||||||||||
Property, plant and equipment are stated at historical cost, net of capital investment funding, accumulated depreciation and any impairment losses. Property, plant and equipment acquired in a business combination are recognized at fair value at the acquisition date. Major additions and improvements are capitalized, minor replacements and repairs are charged to current operations. | |||||||||||||
Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: | |||||||||||||
Buildings | 33 years | ||||||||||||
Facilities and leasehold improvements | 5-10 years | ||||||||||||
Machinery and equipment | 3-10 years | ||||||||||||
Computer and R&D equipment | 3-6 years | ||||||||||||
Other | 2-5 years | ||||||||||||
The Company evaluates each period whether there is reason to suspect that tangible assets or groups of assets held and used might not be recoverable. Several impairment indicators exist for making this assessment, such as: restructuring plans, significant changes in the technology, market, economic or legal environment in which the Company operates or in the market to which the asset is dedicated, or available evidence of obsolescence of the asset, or indication that its economic performance is, or will be, worse than expected. In determining the recoverability of assets to be held and used, the Company initially assesses whether the carrying value of the tangible assets or group of assets exceeds the undiscounted cash flows associated with these assets. If exceeded, the Company then evaluates whether an impairment charge is required by determining if the asset’s carrying value also exceeds its fair value. This fair value is normally estimated by the Company based on independent market appraisals or the sum of discounted future cash flows, using market assumptions such as the utilization of the Company’s fabrication facilities and the ability to upgrade such facilities, change in the selling price and the adoption of new technologies. The Company also evaluates, and adjusts if appropriate, the assets’ useful lives, at each balance sheet date or when impairment indicators exist. | |||||||||||||
When property, plant and equipment are retired or otherwise disposed of, the net book value of the assets is removed from the Company’s books. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in “Other income and expenses, net” in the consolidated statements of income. | |||||||||||||
Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. Assets leased under capital leases are included in “Property, plant and equipment, net” and recorded at inception at the lower of their fair value and the present value of the minimum lease payments. They are depreciated over the shorter of the estimated useful life and the lease term unless there is a reasonable certainty that ownership will be obtained by the end of the lease term. The financial liability corresponding to the contractual obligation to proceed to future lease payments is included in long-term debt, as described in Note 2.14. Lease arrangements classified as operating leases are arrangements in which the lessor retains a significant portion of the risks and rewards of ownership of the leased assets. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease period. | |||||||||||||
2.12 – Investments | |||||||||||||
The Company assesses each investment to determine whether the investee is a Variable Interest Entity (“VIE”). The Company consolidates the VIEs for which the Company is determined to be the primary beneficiary, as described in Note 2.9. | |||||||||||||
Investments in public companies that have readily determinable fair values and for which the Company does not have the ability to exercise significant influence are classified as trading or available-for-sale equity securities, as described in Note 2.22. Investments in equity securities without readily determinable fair values and for which the Company does not have the ability to exercise significant influence are accounted for under the cost-method. Under the cost-method of accounting, investments are carried at historical cost and are adjusted only for declines in value. The fair value of a cost-method investment is estimated on a non-recurring basis when there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. An impairment loss is immediately recorded in the consolidated statements of income when it is assessed to be other-than-temporary and is based on the Company’s assessment of any significant and sustained reductions in the investment’s fair value. For unquoted equity securities, assumptions and estimates used in measuring fair value include the use of recent arm’s length transactions when they reflect the orderly exit price of the investments. Gains and losses on investments sold are determined on the specific identification method and are recorded as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. | |||||||||||||
Equity-method investments are all entities over which the Company has the ability to exercise significant influence but not control, generally representing a shareholding of between 20% and 50% of the voting rights. These investments are valued under the equity-method and are initially recognized at cost. Goodwill on equity-method investments is included in the carrying value of the investment and is not individually tested for impairment. Equity-method investments also include entities which the Company determines to be VIEs, as described in Note 2.9, if the Company has the ability to exercise significant influence over the entity’s operations even if the Company owns less than 20% and is not the primary beneficiary. The Company’s share in the result of operations of equity-method investments is recognized in the consolidated statements of income on the line “Income (loss) on equity-method investments” and in the consolidated balance sheets as an adjustment to the carrying amount of the investments. Where there has been a change recognized directly in the equity of the investee, the Company recognizes its share in the adjustment, when applicable, directly in the consolidated statement of equity. The financial statements of the equity-method investments are prepared for the same reporting period as the Company or with a time lag not exceeding three months if the investee cannot issue financial statements within the closing timeframe requirements of the Company. At each period-end, the Company assesses whether there is objective evidence that its interests in equity-method investments are impaired. Once a determination is made that an other-than-temporary impairment exists, the Company writes down the carrying value of the equity-method investment to its fair value at the balance sheet date, which establishes a new cost basis. The fair value of an equity-method investment is measured on a non-recurring basis using primarily a combination of an income approach, based on discounted cash flows, and a market approach with financial metrics of comparable public companies. | |||||||||||||
2.13 – Provisions | |||||||||||||
In determining loss contingencies, the Company considers the likelihood of a loss of an asset or the incurrence of a liability as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss from a loss contingency is accrued by a charge to income when information available indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and when the amount of the loss can be reasonably estimated. | |||||||||||||
2.14 – Long-term debt | |||||||||||||
Bank loans and non-convertible senior bonds, are recognized at historical cost, net of transaction costs incurred. They are subsequently reported at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statements of income over the period of the borrowings using the effective interest rate method. | |||||||||||||
As described in Note 2.11, lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. The Company reports the leased assets on the line “Property, plant and equipment, net” and recognizes a financial liability corresponding to the contractual obligation to proceed to future lease payments, which is included in long-term debt. Each lease payment is allocated between the debt repayment and interest expense. | |||||||||||||
Short-term debt is classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. | |||||||||||||
2.15 – Employee benefits | |||||||||||||
(a) Pension obligations | |||||||||||||
The Company sponsors various pension schemes for its employees. These schemes conform to local regulations and practices in the countries in which the Company operates. Such plans include both defined benefit and defined contribution plans. For defined benefit pension plans, the liability recognized in the consolidated balance sheets is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The overfunded or underfunded status of the defined benefit plans are calculated as the difference between plan assets and the projected benefit obligations. Significant estimates are used in determining the assumptions incorporated in the calculation of the pension obligations, which is supported by input from independent actuaries. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to income over the employees’ expected average remaining working lives. Past service costs are recognized immediately in earnings, unless the changes to the pension scheme are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are amortized on a straight-line basis over the vesting period. The net periodic benefit cost of the year is determined based on the assumptions used at the end of the previous year. | |||||||||||||
For defined contribution pension plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. | |||||||||||||
(b) Other post-employment obligations | |||||||||||||
The Company provides post-employment benefits to some of its retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and to the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to income over the expected average remaining working lives of the related employees. | |||||||||||||
(c) Termination benefits | |||||||||||||
Termination benefits are payable when an employee is involuntarily terminated, or whenever an employee accepts voluntary termination in exchange for termination benefits. For the accounting treatment and timing recognition of involuntarily termination benefits, the Company distinguishes between one-time termination benefit arrangements and ongoing termination benefit arrangements. A one-time termination benefit arrangement is established by a termination plan and applies to a specified termination event. One-time involuntary termination benefits are recognized as a liability when the termination plan meets certain criteria and has been communicated to employees. If employees are required to render future service in order to receive these one-time termination benefits, the liability is recognized ratably over the future service period. Termination benefits other than one-time termination benefits are termination benefits for which the communication criterion is not met but that are committed to by management, or termination obligations that are not specifically determined in a new and single plan. These termination benefits are all legal, contractual and past practice termination obligations to be paid to employees in case of involuntary termination. These termination benefits are accrued for when commitment creates a present obligation to others for the benefits expected to be paid, when it is probable that employees will be entitled to the benefits and the amount can be reasonably estimated. | |||||||||||||
In case of special termination benefits related to voluntary redundancy programs, the Company recognizes a provision for voluntary termination benefits at the date on which the employee irrevocably accepts the offer and the amount can be reasonably estimated. | |||||||||||||
(d) Profit-sharing and bonus plans | |||||||||||||
The Company recognizes a liability and an expense for bonuses and profit-sharing plans when it is contractually obliged or where there is a past practice that has created a present obligation. | |||||||||||||
(e) Other long-term employee benefits | |||||||||||||
The Company provides long-term employee benefits such as seniority awards in certain countries. The entitlement to these benefits is usually conditional on the employee completing a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to earnings in the period of change. These obligations are valued annually with the assistance of independent qualified actuaries. | |||||||||||||
(f) Share-based compensation | |||||||||||||
The Company grants unvested stock awards to senior executives and selected employees for free. Until 2012, the members and professionals of the Supervisory Board received share options with an exercise price equal to the par value of the shares (Euro 1.04). The awards granted to employees vest upon completion of an average three-year service period. For certain employees, awards contingently vest upon achieving three performance conditions. The awards granted to the Supervisory Board vested unconditionally along the same vesting period as employees but were not forfeited even if the service period was not completed. The Company measures the cost of the awards based on the grant-date fair value of the shares. That cost is recognized over the period during which an employee is required to provide service in exchange for the award or the requisite service period, usually the vesting period. Compensation is recognized only for the awards that ultimately vest. The compensation cost is recorded through earnings against equity, under “Capital surplus” in the consolidated statements of equity. The compensation cost is calculated based on the number of awards expected to vest, which includes assumptions on the number of awards to be forfeited due to the employees’ failing to fulfill the service condition, and forfeitures following the non-completion of one or more performance conditions. | |||||||||||||
Liabilities for the Company’s portion of payroll taxes are recognized at vesting, which is the event triggering the payment of the social contributions in most of the Company’s local tax jurisdictions. Employee-related social charges are measured based on the intrinsic value of the share at vesting date. | |||||||||||||
2.16 – Share capital | |||||||||||||
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. | |||||||||||||
Where the Company purchases its equity share capital (treasury stock), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company’s shareholders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received net of directly attributable incremental transaction costs and the related income tax effect is included in equity. | |||||||||||||
2.17 – Comprehensive income (loss) | |||||||||||||
Comprehensive income (loss) is defined as the change in equity of a business during a period except those changes resulting from investment by stockholders and distributions to stockholders. In the accompanying consolidated financial statements, “Other comprehensive income (loss)” and “Accumulated other comprehensive income” primarily consists of temporary unrealized gains (losses) on securities classified as available-for-sale, unrealized gains (losses) on derivatives designated as cash flow hedge and the impact of recognizing the funded status of defined benefit plans, as well as foreign currency translation adjustments, net of tax. | |||||||||||||
2.18 – Revenue Recognition | |||||||||||||
Revenue is recognized as follows: | |||||||||||||
Net sales | |||||||||||||
Revenue from products sold to customers is recognized when all the following conditions have been met: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred; (c) the selling price is fixed or determinable; and (d) collection is reasonably assured. This usually occurs at the time of shipment. | |||||||||||||
Consistent with standard business practice in the semiconductor industry, price protection is granted to distribution customers on their existing inventory of the Company’s products to compensate them for declines in market prices. The ultimate decision to authorize a distributor refund remains fully within the control of the Company. The Company accrues a provision for price protection based on a rolling historical price trend computed on a monthly basis as a percentage of gross distributor sales. This historical price trend represents differences in recent months between the invoiced price and the final price to the distributor, adjusted if required, to accommodate a significant change in the current market price. The short outstanding inventory time period, visibility into the standard inventory product pricing and long distributor pricing history have enabled the Company to reliably estimate price protection provisions at period-end. The Company records the accrued amounts as a deduction of revenue at the time of the sale. | |||||||||||||
The Company’s customers occasionally return the Company’s products for technical reasons. The Company’s standard terms and conditions of sale provide that if the Company determines that products do not conform, the Company will repair or replace the non-conforming products, or issue a credit note or rebate of the purchase price. Quality returns are not related to any technological obsolescence issues and are identified shortly after sale in customer quality control testing. Quality returns are usually associated with end-user customers, not with distribution channels. The Company provides for such returns when they are considered probable and can be reasonably estimated. The Company records the accrued amounts as a reduction of revenue. | |||||||||||||
The Company’s insurance policy relating to product liability only covers physical and other direct damages caused by defective products. The Company carries limited insurance against immaterial non consequential damages. The Company records a provision for warranty costs as a charge against cost of sales, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period. Any potential warranty claims are subject to the Company’s determination that the Company is at fault for damages, and such claims usually must be submitted within a short period of time following the date of sale. This warranty is given in lieu of all other warranties, conditions or terms expressed or implied by statute or common law. The Company’s contractual terms and conditions typically limit its liability to the sales value of the products which gave rise to the claims. | |||||||||||||
While the majority of the Company’s sales agreements contain standard terms and conditions, the Company may, from time to time, enter into agreements that contain multiple elements or non-standard terms and conditions, which require revenue recognition judgments. Where multiple elements exist in an arrangement, the arrangement is allocated to the different elements based on vendor-specific objective evidence, third party evidence or management’s best estimate of the selling price of the separable deliverables. These arrangements generally do not include performance-, cancellation-, termination- or refund-type provisions. | |||||||||||||
Revenues under multiple deliverable arrangements | |||||||||||||
The Company, from time to time, enters into agreements with multiple deliverables. The Company entered into certain agreements related to the licensing of manufacturing processes which include the delivery of a) licenses and process documentation and b) various training and implementation support. In the current agreements, the delivery of each instance of process documentation, as well as the training and support, are considered to be separate units of accounting. The timing of services in these arrangements varies depending on the contractual terms, but revenue is recognized either prorata for short duration service periods, or as the specific services are rendered for longer duration service periods, as appropriate. | |||||||||||||
As these manufacturing processes are not normally sold by the Company or other similar manufacturers, the valuation is based on best estimates of selling prices for such deliverables. These best estimates are determined by the groups responsible for the negotiation of the agreements and are primarily based on either: a) the total amount of the agreement, assuming that subsequent services are insignificant to the sale of the license and process documentation, b) cash payments to be paid by the customer in advance of delivery prior to incurring related services or training and/or c) information derived from the negotiation process between the Company and the customer. Training and support are valued based on past history of similar services or the group’s determined value based on a cost plus analysis. | |||||||||||||
The actual and past revenues for multiple deliverable arrangements are: | |||||||||||||
In millions of U.S. dollars | 2013 | 2012 | 2011 | ||||||||||
Licenses and process documentation | — | 9 | 56 | ||||||||||
Training and support services | 2 | 9 | 14 | ||||||||||
Total Revenues under Multiple Deliverable Arrangements | 2 | 18 | 70 | ||||||||||
Due to the long nature of some of the payments in these agreements, some revenue is deferred until collectability is reasonably assured. | |||||||||||||
Other revenues | |||||||||||||
Other revenues consist of license revenue, service revenue related to transferring licenses, patent royalty income, sale of scrap materials and manufacturing by-products. | |||||||||||||
Funding | |||||||||||||
The Company receives funding mainly from governmental agencies and income is recognized when all contractual conditions for receipt of these funds are fulfilled. The Company’s primary sources for government funding are French, Italian & other European Union (“EU”) governmental entities. Such funding is generally provided to encourage research and development activities, industrialization and local economic development. The conditions for receipt of government funding may include eligibility restrictions, approval by EU authorities, annual budget appropriations, compliance with European Commission regulations, as well as specifications regarding objectives and results. Certain specific contracts contain obligations to maintain a minimum level of employment and investment during a certain period of time. There could be penalties if these objectives are not fulfilled. Other contracts contain penalties for late deliveries or for breach of contract, which may result in repayment obligations. Funding related to these contracts is recorded when the conditions required by the contracts are met. The Company’s funding programs are classified under three general categories: funding for research and development activities, capital investment, and loans. | |||||||||||||
Funding for research and development activities is the most common form of funding that the Company receives. Public funding for research and development is recorded as “Other income and expenses, net” in the Company’s consolidated statements of income. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions are met. Furthermore, following the enactment of the French Finance Act for 2008, which included several changes to the research tax credit regime (“Crédit Impôt Recherche”), French research tax credits are deemed to be grants in substance. Unlike other research and development funding, the amounts to be received are determinable in advance and accruable as the funded research expenditures are made. They are thus reported as a reduction of research and development expenses. The research tax credits are to be paid in cash by the French tax authorities within three years in case they are not deducted from income tax payable during this period of time. | |||||||||||||
Capital investment funding is recorded as a reduction of “Property, plant and equipment, net” and is recognized in the Company’s consolidated statements of income according to the depreciation charges of the funded assets during their useful lives. The Company also receives capital funding in Italy, which could be recovered through the reduction of various governmental liabilities, including income taxes, value-added tax and employee-related social charges. | |||||||||||||
Funding receivables are reported as non-current assets unless cash settlement features of the receivables evidence that collection is expected within one year. Long-term receivables that do not present any tax attribute or legal restriction are reflected in the balance sheets at their discounted net present value. The subsequent accretion of the discounting effect is recorded as non-operating income in “Interest income (expense), net”. | |||||||||||||
The Company receives certain loans, mainly related to large capital investment projects, at preferential interest rates. The Company records these loans as debt in its consolidated balance sheets. | |||||||||||||
2.19 – Advertising costs | |||||||||||||
Advertising costs are expensed as incurred and are recorded as selling, general and administrative expenses. Advertising expenses for 2013, 2012 and 2011 were $11 million, $12 million and $12 million, respectively. | |||||||||||||
2.20 – Research and development | |||||||||||||
Research and development expenses include costs incurred by the Company, the Company’s share of costs incurred by other research and development interest groups, and costs associated with co-development contracts. Research and development expenses do not include marketing design center costs, which are accounted for as selling expenses and process engineering, pre-production or process transfer costs which are recorded as cost of sales. Research and development costs are expensed as incurred. The amortization expense recognized on technologies and licenses purchased by the Company from third parties to facilitate the Company’s research is reported as research and development expenses. Research and development expenses are reported net of research tax credits received in the French jurisdiction, as described in Note 2.18. | |||||||||||||
2.21 – Start-up and phase-out costs | |||||||||||||
Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six-months after the fabrication line’s quality qualification. The costs of phase-outs are associated with the latest stages of facilities closure when the relevant production volumes become immaterial. Start-up costs and phase-out costs are included in “Other income and expenses, net” in the consolidated statements of income. | |||||||||||||
2.22 – Financial assets | |||||||||||||
The Company did not hold at December 31, 2013 and 2012 any financial assets classified as held-to-maturity or financial assets for which the Company would have elected to apply the fair value option. Consequently, the Company classified its financial assets in the following categories: trading and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Unlisted equity securities with no readily determinable fair value are carried at cost, as described in Note 2.12. They are neither classified as held-for-trading nor as available-for-sale. | |||||||||||||
Purchases and sales of financial assets are recognized on the trade date – the date on which the Company commits to purchase or sell the asset. Financial assets classified as available-for-sale and as trading are initially recognized and subsequently carried at fair value. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership; the relevant gain (loss) is reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The basis on which the cost of a security sold and the amount reclassified out of accumulated other comprehensive income into earnings is the specific identification method. | |||||||||||||
The fair values of quoted debt and equity securities are based on current market prices. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using assumptions and estimates. These assumptions and estimates include the use of recent arm’s length transactions; for debt securities without available observable market prices, the Company establishes fair value by reference to publicly available indices of securities with the same rating and comparable or similar underlying collaterals or industries’ exposure, which the Company believes approximates the amount that would be received from the sale of the asset in an orderly transaction between market participants at the measurement date. In measuring fair value, the Company makes maximum use of market inputs and minimizes the use of unobservable inputs. | |||||||||||||
Trading financial assets | |||||||||||||
A financial asset is classified in this category if it is a security acquired principally for the purpose of selling in the short term or if it is a derivative instrument not designated as a hedge. Financial assets in this category are classified as current assets when they are expected to be realized within twelve months of the balance sheet date. Marked-to-market gains or losses arising from changes in the fair value of trading financial assets are reported in the consolidated statements of income within “Other income and expenses, net” in the period in which they arise, when the transactions for such instruments occur within the Company’s operating activities, as it is the case for trading derivatives that do not qualify as hedging instruments, as described in Note 2.23. Gains and losses arising from changes in the fair value of financial assets not related to operating activities, are presented in the consolidated statements of income as a non-operating element within “Gain (loss) on financial instruments, net” in the period in which they arise. | |||||||||||||
Available-for-sale financial assets | |||||||||||||
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified as held-for-trading. They are included in current assets when they represent investments of funds available for current operations or when management intends to dispose of the securities within twelve months of the balance sheet date. | |||||||||||||
Changes in fair value, including declines determined to be temporary, of securities classified as available-for-sale are recognized as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income. | |||||||||||||
The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets classified as available-for-sale is impaired. When equity securities classified as available-for-sale are determined to be other-than-temporarily impaired, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element on the consolidated statements of income on the line “Other-than-temporary impairment charge and realized gains (losses) on financial assets”. For debt securities, if a credit loss exists, but the Company does not intend to sell the impaired security and is not more likely than not to be required to sell before recovery, the impairment is separated into the estimated amount relating to credit loss, and the amount relating to all other factors of declines in fair value. Only the estimated credit loss amount is recognized currently in earnings on the line “Other-than-temporary impairment charge and realized gains (losses) on financial assets”, with the remainder of the loss amount recognized in accumulated other comprehensive income (loss). Impairment losses recognized in the consolidated statements of income are not reversed through earnings. | |||||||||||||
When securities classified as available-for-sale are sold, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings is determined based on the specific identification of the securities sold. | |||||||||||||
2.23 – Derivative financial instruments and hedging activities | |||||||||||||
Derivative financial instruments are initially recognized on the date a derivative contract is entered into and are subsequently measured at fair value. The method of recognizing the gain or loss resulting from the derivative instrument depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the hedge transaction. The Company has designated certain derivatives as hedges of a particular risk associated with a highly probable forecasted transaction (cash flow hedge). | |||||||||||||
The Company documents, at inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Derivative instruments that are not designated as hedges are classified as trading financial assets, as described in Note 2.22. | |||||||||||||
Derivative financial instruments classified as trading | |||||||||||||
The Company conducts its business on a global basis in various major international currencies. As a result, the Company is exposed to adverse movements in foreign currency exchange rates. The Company enters into foreign currency forward contracts and currency options to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies at the Company’s subsidiaries. These instruments do not qualify as hedging instruments, and are marked-to-market at each period-end with the associated changes in fair value recognized in “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.22. | |||||||||||||
Cash Flow Hedge | |||||||||||||
To reduce its exposure to U.S. dollar exchange rate fluctuations, the Company hedges certain Euro-denominated forecasted transactions that cover at reporting date a large part of its research and development, selling, general and administrative expenses as well as a portion of its front-end manufacturing costs of semi-finished goods through the use of currency forward contracts and currency options, including collars. The Company also hedges through the use of currency forward contracts certain Singapore dollar-denominated manufacturing forecasted transactions. As part of its ongoing operating, investing and financing activities, the Company may from time to time enter into certain derivative transactions that are designated and qualify as a cash flow hedge. | |||||||||||||
The derivative instruments are designated and qualify for cash flow hedge at inception of the contract and on an ongoing basis over the duration of the hedge relationship. They are reflected at their fair value in the consolidated balance sheets. The criteria for designating a derivative as a hedge include the instrument’s effectiveness in risk reduction and, in most cases, a one-to-one matching of the derivative instrument to its underlying transaction with the critical terms of the hedging instrument matching the terms of the hedged forecasted transaction. This enables the Company to conclude that changes in cash flows attributable to the risk being hedged are expected to be completely offset by the hedging instruments. | |||||||||||||
For derivative instruments designated as cash flow hedge, the change in fair value from the effective portion of the hedge is reported as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income and is reclassified into earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line as the hedged transaction. For these derivatives, ineffectiveness appears if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transactions. Effectiveness on transactions hedged through purchased options is measured on the full fair value of the option, including time value. | |||||||||||||
When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was reported in “Accumulated other comprehensive income (loss)” in the consolidated statements of equity is immediately transferred to the consolidated statements of income within “Other income and expenses, net” if the de-designated derivative relates to operating activities. If upon de-designation, the derivative instrument is held in view to be sold with no direct relation with current operating activities, changes in the fair value of the derivative instrument following de-designation are reported as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. If the derivative is still related to operating activities, the changes in fair value subsequent to the discontinuance continue to be reported within “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.22. | |||||||||||||
In order to optimize its hedging strategy, the Company can be required to cease the designation of certain cash flow hedge transactions and enter into a new designated cash flow hedge transaction with the same hedged forecasted transaction but with a new hedging instrument. De-designation and re-designation are formally authorized and limited to the de-designation of purchased currency options with re-designation of the cash flow hedge through subsequent forward contracts when the Euro/U.S. dollar exchange rate is decreasing, the intrinsic value of the option is nil, the hedged transaction is still probable of occurrence and meets at re-designation date all criteria for hedge accounting. At de-designation date, the net derivative gain or loss related to the de-designated cash flow hedge continues to be reported in other comprehensive income. From de-designation date, the change in fair value of the de-designated hedging item is recognized each period in the consolidated statements of income on the line “Other income and expenses, net”, as described in Note 2.22. The net derivative gain or loss related to the de-designated cash flow hedge deferred in other comprehensive income is reclassified to earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line as the hedged transaction. | |||||||||||||
2.24 – Recent accounting pronouncements | |||||||||||||
(a) | Accounting pronouncements effective in 2013 | ||||||||||||
In December 2011, the FASB issued new guidance on disclosures about offsetting assets and liabilities. Entities with balances presented on a net basis in the financial statements shall disclose both gross and net information about instruments and transactions eligible for offset in the consolidated balance sheet as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In February 2013, the FASB issued a guidance clarifying the scope of disclosures about offsetting assets and liabilities by limiting such scope to derivatives, repurchase agreements and securities lending transactions to the extent that they are offset in the financial statements or subject to an enforceable master netting agreement. The Company adopted the new guidance in 2013 and disclosures are included in Note 23. | |||||||||||||
In February 2013, the FASB issued new guidance on reporting amounts reclassified out of accumulated other comprehensive income. The new guidance requires that the effect of significant amounts reclassified from each component of accumulated other comprehensive income be presented either in a single note or parenthetically on the face of the financial statements, based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. The Company adopted the new guidance in 2013 and reported amounts reclassified out of accumulated other comprehensive income in Note 15. | |||||||||||||
In July 2013, the FASB issued guidance on how to present an unrecognized tax benefit (“UTB”) when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under the new guidance, UTBs will be netted against all available same-jurisdiction losses or other tax carryforwards that would be utilized. The new guidance must be adopted prospectively, but optional retrospective adoption for all periods presented is allowed. The guidance is effective for annual and interim reporting periods beginning after December 15, 2013, with early adoption permitted. The Company early adopted the guidance as at December 31, 2013, on a prospective basis. The impact of the new guidance upon adoption was the presentation of $229 million unrecognized tax benefits against existing net operating loss carryforward available in four tax jurisdictions, reported on the line “Non-current deferred tax assets” of the consolidated balance sheet as at December 31, 2013. | |||||||||||||
(b) | Accounting pronouncements expected to impact the Company’s operations that are not yet effective and have not been adopted early by the Company | ||||||||||||
In March 2013, the FASB issued new guidance on obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. An entity should recognize the respective portion of the obligation it agrees to pay among its co-obligors and assess any additional amounts it expects to pay related to amounts borrowed by its co-obligors applying the measurement principles of the contingencies model under ASC 450. Enhanced disclosures similar to those required for financial guarantees will be required for those obligations. The guidance is effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The Company will adopt the new guidance when effective and does not expect any significant impact of this adoption. | |||||||||||||
In March 2013, the FASB issued clarified guidance on whether, when and how to release cumulative translation adjustment (“CTA”) into earnings in various deconsolidation and consolidation transactions. Complete or substantially complete liquidation of a foreign entity is required to release CTA for transactions occurring within a foreign entity. Transactions impacting investments in the foreign entity may result in a full or partial release of CTA even though complete or substantially complete liquidation of the foreign entity has not occurred. For transactions involving step acquisitions, the CTA associated with the previous equity-method investment will be fully released when control is obtained and consolidation occurs. The guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. The Company will adopt the guidance when effective. |
Marketable_Securities
Marketable Securities | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||
Marketable Securities | ' | ||||||||||||||||||||||||||||
3 | MARKETABLE SECURITIES | ||||||||||||||||||||||||||||
Changes in the value of marketable securities, as reported in current assets on the consolidated balance sheets as at December 31, 2013 and December 31, 2012 are detailed in the tables below: | |||||||||||||||||||||||||||||
In millions of U.S. dollars | December 31, | Purchase | Sale | Change in | Change in | Foreign | December 31, | ||||||||||||||||||||||
2012 | fair value | fair value | exchange | 2013 | |||||||||||||||||||||||||
included | recognized in | result | |||||||||||||||||||||||||||
in OCI* for | earnings | through | |||||||||||||||||||||||||||
available- | OCI* | ||||||||||||||||||||||||||||
for-sale | |||||||||||||||||||||||||||||
marketable | |||||||||||||||||||||||||||||
securities | |||||||||||||||||||||||||||||
Debt securities issued by the U.S. Treasury | 150 | — | (150 | ) | — | — | — | — | |||||||||||||||||||||
Senior debt Floating Rate Notes issued by financial institutions | 88 | — | (34 | ) | — | — | 3 | 57 | |||||||||||||||||||||
Total | 238 | — | (184 | ) | — | — | 3 | 57 | |||||||||||||||||||||
* | Other Comprehensive Income | ||||||||||||||||||||||||||||
In millions of U.S. dollars | December 31, | Purchase | Sale | Change in | Change in | Foreign | December 31, | ||||||||||||||||||||||
2011 | fair value | fair value | exchange | 2012 | |||||||||||||||||||||||||
included | recognized in | result | |||||||||||||||||||||||||||
in OCI* for | earnings | through | |||||||||||||||||||||||||||
available- | OCI* | ||||||||||||||||||||||||||||
for-sale | |||||||||||||||||||||||||||||
marketable | |||||||||||||||||||||||||||||
securities | |||||||||||||||||||||||||||||
Debt securities issued by the U.S. Treasury | 100 | 450 | (400 | ) | — | — | — | 150 | |||||||||||||||||||||
Debt securities issued by foreign governments | 81 | — | (81 | ) | — | — | — | — | |||||||||||||||||||||
Fixed rate debt securities issued by financial institutions | 27 | — | (25 | ) | — | — | (2 | ) | — | ||||||||||||||||||||
Senior debt Floating Rate Notes issued by financial institutions | 205 | — | (124 | ) | 6 | 1 | — | 88 | |||||||||||||||||||||
Total | 413 | 450 | (630 | ) | 6 | 1 | (2 | ) | 238 | ||||||||||||||||||||
* | Other Comprehensive Income | ||||||||||||||||||||||||||||
The U.S. Treasury Bills amounting to $150 million as of December 31, 2012 were sold in 2013. They were rated Aaa by Moody’s as at December 31, 2012. The change in fair value of these marketable securities was not material as at December 31, 2012. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponded to a Level 1 fair value measurement hierarchy. | |||||||||||||||||||||||||||||
All securities were classified as available-for-sale and recorded at fair value, with changes in fair value recognized as a separate component of the consolidated statements of comprehensive income, except for those declines deemed to be other-than-temporary. | |||||||||||||||||||||||||||||
Only two investment positions in Senior debt Floating Rate Notes, with an average rating of Baa2/A-/A, were outstanding as at December 31, 2013, with a duration of 0.05 year. Due to the short duration before maturity, the value of the securities as at December 31, 2013 corresponded to par value; no credit loss was identified on these instruments and the cumulative change in fair value recognized as a separate component of “Accumulated other comprehensive income (loss)” in the consolidated statement of equity was not material as at December 31, 2013. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponds to a Level 1 fair value measurement hierarchy. The aggregate amortized cost basis of these securities totalled $57 million and $89 million as at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||
As at December 31, 2011, the Company held $5 million in Euro-denominated senior unsecured bonds issued by Lehman Brothers, for an original investment of Euro 15 million. Those debt securities were sold in 2012, generating cash proceeds totalling $5 million. The gain, which was not material, was reported on the line “Gain on financial instruments, net” on the consolidated statement of income for the year ended December 31, 2012. | |||||||||||||||||||||||||||||
The debt securities were reported as current assets on the line “Marketable Securities” on the consolidated balance sheet as at December 31, 2013, since they represented investments of funds available for current operations. |
Trade_Accounts_Receivable_Net
Trade Accounts Receivable, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Trade Accounts Receivable, Net | ' | ||||||||
4 | TRADE ACCOUNTS RECEIVABLE, NET | ||||||||
Trade accounts receivable, net consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Trade accounts receivable | 1,058 | 1,015 | |||||||
Allowance for doubtful accounts | (9 | ) | (10 | ) | |||||
Total | 1,049 | 1,005 | |||||||
Bad debt expense in 2013, 2012, and 2011 was $2 million, $1 million and $1 million, respectively. In 2013 and 2012 none of the customers represented over 10% of consolidated net revenues while in 2011, one customer, the Nokia group of companies, represented 10.4% of consolidated net revenues. | |||||||||
The Company enters into factoring transactions to accelerate the realization in cash of some trade accounts receivable. As at December 31, 2013 and 2012, trade accounts receivable were sold without recourse for $56 million and $127 million respectively. Such factoring transactions totaled respectively $570 million and $1,143 million for the years 2013 and 2012, with a financial cost totaling $2 million, $4 million and $3 million respectively for the years 2013, 2012 and 2011, reported on the line “Interest expense, net” on the consolidated statement of income. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
5 | INVENTORIES | ||||||||
Inventories are stated at the lower of cost or market value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the excess capacity are not included in the valuation of inventories but charged directly to cost of sales. | |||||||||
Reserve for obsolescence is estimated for excess uncommitted inventories based on the previous quarter’s sales, backlog of orders and production plans. | |||||||||
Inventories, net of reserve, consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | 84 | 78 | |||||||
Work-in-process | 885 | 941 | |||||||
Finished products | 367 | 334 | |||||||
Total | 1,336 | 1,353 |
Other_Current_Assets
Other Current Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Current Assets | ' | ||||||||
6 | OTHER CURRENT ASSETS | ||||||||
Other current assets consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Receivables from government agencies | 127 | 156 | |||||||
Taxes and other government receivables | 56 | 68 | |||||||
Advances | 46 | 84 | |||||||
Prepayments | 54 | 74 | |||||||
Loans and deposits | 13 | 15 | |||||||
Interest receivable | 1 | 1 | |||||||
Derivative instruments | 43 | 36 | |||||||
Receivables from equity-method investments | 8 | 16 | |||||||
Other current assets | 41 | 68 | |||||||
Total | 389 | 518 | |||||||
Derivative instruments are further described in Note 23. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
7 | GOODWILL | ||||||||||||||||
Goodwill allocated to reportable segments as of December 31, 2013 and 2012 and changes in the carrying amount of goodwill during the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||
Sense & Power | Embedded | Others | Total | ||||||||||||||
and Automotive | Processing | ||||||||||||||||
(SP&A) | Solutions (EPS) | ||||||||||||||||
December 31, 2011 | 11 | 1,043 | 5 | 1,059 | |||||||||||||
Business Combinations | 1 | — | — | 1 | |||||||||||||
Foreign currency translation | — | 3 | — | 3 | |||||||||||||
Impairment loss | — | (922 | ) | — | (922 | ) | |||||||||||
December 31, 2012 | 12 | 124 | 5 | 141 | |||||||||||||
Sale of business | — | — | (5 | ) | (5 | ) | |||||||||||
Re-classification to AHFS | (10 | ) | — | — | (10 | ) | |||||||||||
Foreign currency translation | — | 2 | — | 2 | |||||||||||||
Impairment loss | — | (38 | ) | — | (38 | ) | |||||||||||
December 31, 2013 | 2 | 88 | — | 90 | |||||||||||||
Goodwill as at December 31, 2013 is net of accumulated impairment losses of $1,024 million, of which $1,018 million relates to the EPS segment and $6 million relates to the segment “Others”. Goodwill as at December 31, 2012 is net of accumulated impairment losses of $986 million, of which $980 million relates to the EPS segment and $6 million relates to the segment “Others”. | |||||||||||||||||
In 2012, the Company recorded on Wireless goodwill an impairment loss totalling $922 million. | |||||||||||||||||
During the third quarter of 2013, the Company performed its annual impairment campaign. The Company did not elect to perform a qualitative assessment on any of its tested reporting units. The impairment test was conducted following a two-step process. In the first step, the Company compared the fair value of the reporting unit to its carrying value. Based upon the first step of the goodwill impairment test, no impairment was recorded for the AMS (part of SP&A) and MMS (part of EPS) reporting units since the fair value of the reporting units exceeded their carrying values. However, based upon step one, it was necessary to conduct the second step of the impairment test for the DCG reporting unit whose estimated fair value was lower than its carrying value. Before performing the second step of the goodwill impairment test, the dedicated long-lived assets of DCG were tested for impairment. The result was that all dedicated intangible assets, amounting to $18 million, were fully impaired due to the negative cash flow projected over their remaining useful life. Regarding the tangible fixed assets, their fair value was essentially equal to their carrying value. The second step of the goodwill impairment test required a determination of the implied fair value of goodwill in a manner similar to a purchase price allocation exercise, and therefore to determine the fair value of all assets and liabilities of the DCG reporting unit. These fair values are considered only to determine the impairment charge but are not booked. In determining the fair value of the DCG reporting unit, the Company used an estimate of the expected discounted future cash flows associated with the reporting unit on the basis of a plan that included management’s best estimate about future developments and scenarios of the reporting unit. No other unrecorded intangible assets have been identified and the implied fair value of goodwill is nil leading to an impairment charge for the third quarter of 2013 of $38 million. In summary, as a result of the impairment campaign, a non-cash impairment of $18 million relating to the dedicated intangible assets of the DCG reporting unit and a non-cash impairment of $38 million relating to the remaining goodwill of the DCG reporting unit were recorded. | |||||||||||||||||
Veredus, a 67% investment of the Company, has been classified as Assets held for sale as of December 31, 2013. Consequently, Veredus goodwill, belonging to the SP&A segment, was re-classified to Assets held for sale for $10 million as of December 31, 2013. On January 13, 2014, the Company sold a 50% stake in Veredus shares to a third party investor. |
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Other Intangible Assets | ' | ||||||||||||
8 | OTHER INTANGIBLE ASSETS | ||||||||||||
Other intangible assets consisted of the following: | |||||||||||||
December 31, 2013 | Gross Cost | Accumulated | Net Cost | ||||||||||
Amortization | |||||||||||||
Technologies & licences | 616 | (484 | ) | 132 | |||||||||
Contractual customer relationships | 5 | (5 | ) | — | |||||||||
Purchased software | 338 | (290 | ) | 48 | |||||||||
Construction in progress | 37 | — | 37 | ||||||||||
Other intangible assets | 62 | (62 | ) | — | |||||||||
Total | 1,058 | (841 | ) | 217 | |||||||||
December 31, 2012 | Gross Cost | Accumulated | Net Cost | ||||||||||
Amortization | |||||||||||||
Technologies & licences | 742 | (630 | ) | 112 | |||||||||
Contractual customer relationships | 13 | (11 | ) | 2 | |||||||||
Purchased software | 356 | (312 | ) | 44 | |||||||||
Construction in progress | 39 | — | 39 | ||||||||||
Other intangible assets | 104 | (88 | ) | 16 | |||||||||
Total | 1,254 | (1,041 | ) | 213 | |||||||||
The line “Construction in progress” in the table above includes internally developed software under construction and software not ready for use. | |||||||||||||
The line “Other intangible assets” consists primarily of internally developed software. The amortization expense on capitalized software costs in 2013, 2012 and 2011 was $17 million, $38 million and $33 million, respectively. | |||||||||||||
During the third quarter of 2013, an impairment test was performed on the DCG reporting unit, as detailed in Note 7. Prior to conducting the impairment test on goodwill, the Company evaluated the recoverability of the long-lived assets dedicated to the DCG reporting unit, including acquired technologies and capitalized software. Recoverability of these intangible assets was assessed based on the undiscounted future cash flows expected to result from their use. Based on management’s best estimates about future developments and scenarios of the DCG reporting unit, as well as assumptions on alternative future use, the Company concluded that the undiscounted future cash flows were less than the carrying value. Therefore, these intangible assets were considered to be impaired. The amount of the impairment loss was measured as the difference between the carrying amount of these assets and the fair value based on a discounted cash flow approach. The impairment on intangible assets totaled $18 million and was composed of $17 million impairment on acquired technologies and $1 million impairment on capitalized software. | |||||||||||||
Veredus, a 67% investment of the Company, has been classified as Assets held for sale as of December 31, 2013. Consequently, Veredus intangibles were re-classified to Assets held for sale for $11 million as of December 31, 2013. On January 13, 2014, the Company sold a 50% stake in Veredus shares to a third party investor. | |||||||||||||
The amortization expense in 2013, 2012 and 2011 was $72 million, $177 million and $211 million, respectively. | |||||||||||||
The estimated amortization expense of the existing intangible assets for the following years is: | |||||||||||||
Year | |||||||||||||
2014 | 64 | ||||||||||||
2015 | 55 | ||||||||||||
2016 | 45 | ||||||||||||
2017 | 26 | ||||||||||||
2018 | 13 | ||||||||||||
Thereafter | 14 | ||||||||||||
Total | 217 |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
9 | PROPERTY, PLANT AND EQUIPMENT | ||||||||||||
Property, plant and equipment consisted of the following: | |||||||||||||
December 31, 2013 | Gross Cost | Accumulated | Net Cost | ||||||||||
Depreciation | |||||||||||||
Land | 94 | — | 94 | ||||||||||
Buildings | 987 | (429 | ) | 558 | |||||||||
Facilities & leasehold improvements | 3,218 | (2,826 | ) | 392 | |||||||||
Machinery and equipment | 14,684 | (12,728 | ) | 1,956 | |||||||||
Computer and R&D equipment | 463 | (414 | ) | 49 | |||||||||
Other tangible assets | 137 | (121 | ) | 16 | |||||||||
Construction in progress | 91 | — | 91 | ||||||||||
Total | 19,674 | (16,518 | ) | 3,156 | |||||||||
December 31, 2012 | Gross Cost | Accumulated | Net Cost | ||||||||||
Depreciation | |||||||||||||
Land | 93 | — | 93 | ||||||||||
Buildings | 966 | (395 | ) | 571 | |||||||||
Facilities & leasehold improvements | 3,151 | (2,649 | ) | 502 | |||||||||
Machinery and equipment | 14,553 | (12,363 | ) | 2,190 | |||||||||
Computer and R&D equipment | 504 | (451 | ) | 53 | |||||||||
Other tangible assets | 165 | (145 | ) | 20 | |||||||||
Construction in progress | 52 | — | 52 | ||||||||||
Total | 19,484 | (16,003 | ) | 3,481 | |||||||||
The line “Construction in progress” in the table above includes property, plant and equipment under construction and equipment under qualification before operating. | |||||||||||||
Facilities & leasehold improvements, Machinery and equipment and Other tangible assets include assets acquired under capital lease. The Net Cost of Assets under capital lease for the years ended December 31, 2013 and 2012 was $1 million and $3 million, respectively. | |||||||||||||
The depreciation charge in 2013, 2012 and 2011 was $838 million, $930 million and $1,068 million, respectively. | |||||||||||||
Capital investment funding has totaled $3 million for the year ended December 31, 2013, $1 million for the year ended December 31, 2012 and $11 million for the year ended December 31, 2011. Public funding reduced depreciation charges by $6 million, $10 million and $12 million in 2013, 2012 and 2011, respectively. | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011 the Company made equipment sales for cash proceeds of $12 million, $16 million and $26 million, respectively. |
LongTerm_Investments
Long-Term Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Long-Term Investments | ' | ||||||||||||||||
10 | LONG-TERM INVESTMENTS | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Equity-method investments | 63 | 106 | |||||||||||||||
Cost-method investments | 13 | 13 | |||||||||||||||
Total | 76 | 119 | |||||||||||||||
Equity-method investments | |||||||||||||||||
Equity-method investments as at December 31, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
In millions of U.S. dollars, except percentages | December 31, 2013 | December 31, 2012 | |||||||||||||||
Carrying | Ownership | Carrying | Ownership | ||||||||||||||
value | percentage | value | percentage | ||||||||||||||
ST-Ericsson AT SA | — | — | 9 | 49 | % | ||||||||||||
ST-Ericsson SA | 50 | 50 | % | — | — | ||||||||||||
3Sun S.r.l. | 13 | 33.3 | % | 91 | 33.3 | % | |||||||||||
MicroOLED SAS | — | 39.6 | % | 6 | 39.6 | % | |||||||||||
Total | 63 | 106 | |||||||||||||||
ST-Ericsson AT SA (“JVD”) and ST-Ericsson SA (“JVS”) | |||||||||||||||||
On February 3, 2009, the Company announced the closing of a transaction to combine the businesses of Ericsson Mobile Platforms and ST-NXP Wireless into a new venture, named ST-Ericsson. As part of the transaction, the Company received an interest in both ST-Ericsson Holding AG (parent of “JVS” group of companies) and ST-Ericsson AT Holding AG (parent of “JVD” group of companies) in which the Company owned respectively 50% plus a controlling share and 50% less a controlling share held by Ericsson. In 2010, ST-Ericsson Holding AG and ST-Ericsson AT Holding AG were merged in ST-Ericsson SA and ST-Ericsson AT SA respectively. | |||||||||||||||||
The Company evaluated that both JVS and JVD were variable interest entities. The Company determined that it controlled JVS and therefore consolidated JVS, but that it was not the primary beneficiary of JVD and therefore accounted for its investment in JVD under the equity-method. | |||||||||||||||||
On August 2, 2013, the Company sold its JVD shares to Ericsson for the value of its equity investment in JVD ($4 million), leading to the de-recognition of its equity investment in JVD. | |||||||||||||||||
On September 9, 2013, the Company sold 1 JVS share to Ericsson for its nominal value changing the ownership structure of JVS to bring both partners to an equal ownership proportion. As a result and in combination with the new shareholder agreement, the Company lost the control of JVS and as such JVS was deconsolidated from the Company’s financial statements. The deconsolidation of JVS did not result in a gain or loss for the Company. The fair value of the Company’s retained noncontrolling interest was evaluated at $55 million. Due to the loss pick-up recognized during the fourth quarter 2013, the value of the investment amounted to $50 million as of December 31, 2013. In addition, the Company and its partner signed funding commitment letters, capped at $149 million each partner, to the residual joint wind-down operations to ensure solvency. These are not drawn as of December 31, 2013. | |||||||||||||||||
Before the deconsolidation of JVS, certain assets and companies of the JVS group of companies were transferred to both partners for their net book value which was representative of their fair value. The transactions did not result in cash exchange between the partners. | |||||||||||||||||
3Sun S.r.l. (“3Sun”) | |||||||||||||||||
3Sun is a joint initiative between Enel Green Power, Sharp and the Company for the manufacture of thin film photovoltaic panels in Catania, Italy. Each partner owns a third of the common shares of the entity. The Company has determined that 3Sun is not a VIE. However the Company exercises a significant influence over 3Sun and consequently accounts for its investment in 3Sun under the equity-method. | |||||||||||||||||
In 2013, the Company participated for €19 million in 3Sun’s equity increase, out of which €9 million as a loan conversion to equity. | |||||||||||||||||
Taking into consideration the latest business developments, the generated losses and its current financial situation, 3Sun recorded in the second quarter of 2013 an impairment charge of €159 million in addition to its operating losses, out of which $69 million was recognized by the Company. For the year 2013, the line “Loss on equity-method investments” in the Company’s consolidated statement of income included a charge of $35 million related to 3Sun, in addition to the $69 million of impairment. As of December 31, 2013, the Company’s maximum exposure to loss as a result of its involvement with 3Sun was limited to its equity-method investment amounting to $13 million and a shareholder’s loan amounting to $17 million and, under certain conditions, to participate to a share capital increase up to €7 million. | |||||||||||||||||
MicroOLED S.A.S. (“MicroOLED”) | |||||||||||||||||
In the third quarter 2012, the Company invested approximately $7 million in shares of MicroOLED, obtaining 39.6% of the voting rights. MicroOLED is based in Grenoble, France and develops OLED micro-displays. The Company has determined that $4 million out of the total value of its investment is a basis difference created by the identification of technology intangibles in MicroOLED. The Company accounts for its share of results in MicroOLED with a quarter lag. Due to the uncertainty associated with the ability of MicroOLED to continue as a going concern, the full residual value of the investment amounting to $4.1 million was impaired during the third quarter of 2013. | |||||||||||||||||
The summarized financial information of the Company’s equity-method investments as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 is presented below: | |||||||||||||||||
In millions of U.S. dollars | December 31, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Current assets | 266 | 121 | |||||||||||||||
Non-current assets | 287 | 573 | |||||||||||||||
Current liabilities | 178 | 168 | |||||||||||||||
Non-current liabilities | 249 | 297 | |||||||||||||||
In millions of U.S. dollars | 2013 | 2012 | 2011 | ||||||||||||||
Total revenues | 282 | 422 | 255 | ||||||||||||||
Operating income (loss) | (271 | ) | (51 | ) | (10 | ) | |||||||||||
Net income (loss) | (282 | ) | (103 | ) | (11 | ) | |||||||||||
Cost-method investments | |||||||||||||||||
Cost-method investments as at December 31, 2013 and 2012 are equity securities with no readily determinable fair value. It includes principally the Company’s investment in DNP Photomask Europe S.p.A (“DNP”). The Company has identified the joint venture as a VIE, but has determined that it is not the primary beneficiary. The significant activities of DNP revolve around the creation of masks and development of high level mask technology. The Company does not have the power to direct such activities. The Company’s current maximum exposure to loss as a result of its involvement with the joint venture is limited to its investment. The Company has not provided additional financial support in 2013 and currently has no requirement or intent to provide further financial support to the joint venture. |
Other_NonCurrent_Assets
Other Non-Current Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Investments All Other Investments [Abstract] | ' | ||||||||
Other Non-Current Assets | ' | ||||||||
11 | OTHER NON-CURRENT ASSETS | ||||||||
Other non-current assets consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Available-for-sale equity securities | 11 | 10 | |||||||
Trading equity securities | 8 | 8 | |||||||
Long-term State receivables | 513 | 470 | |||||||
Long-term receivables from third parties | 7 | 2 | |||||||
Long-term loans to affiliates | 17 | 28 | |||||||
Prepaid for pension | 10 | 5 | |||||||
Deposits and other non-current assets | 34 | 37 | |||||||
Total | 600 | 560 | |||||||
Long-term State receivables include receivables related to funding and receivables related to tax refund. Funding are mainly public grants to be received from governmental agencies in Italy and France as part of long-term research and development, industrialization and capital investment projects. Long-term receivables related to tax refund correspond to tax benefits claimed by the Company in certain of its local tax jurisdictions, for which collection is expected beyond one year. |
Other_Payables_and_Accrued_Lia
Other Payables and Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Other Payables and Accrued Liabilities | ' | ||||||||
12 | OTHER PAYABLES AND ACCRUED LIABILITIES | ||||||||
Other payables and accrued liabilities consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Employee related liabilities | 383 | 397 | |||||||
Employee compensated absences | 128 | 127 | |||||||
Taxes other than income taxes | 85 | 71 | |||||||
Advances | 32 | 45 | |||||||
Payables to equity-method investments | 81 | 45 | |||||||
Obligations for capacity rights | 3 | 1 | |||||||
Derivative instruments | 4 | 1 | |||||||
Provision for restructuring | 65 | 75 | |||||||
Current portion of pension | 12 | 16 | |||||||
Royalties | 37 | 39 | |||||||
Others | 107 | 125 | |||||||
Total | 937 | 942 | |||||||
The terms of the agreement for the inception of Numonyx, a company created in 2007 from the Company’s and Intel’s flash memory business key assets and sold in 2010 to Micron Technology Inc., included rights granted to Numonyx to use certain assets retained by the Company. As at December 31, 2013 and 2012 the value of such rights totaled $6 million and $14 million respectively, of which $3 million and $1 million respectively were reported as current liabilities. | |||||||||
Derivative instruments are further described in Note 23. | |||||||||
Other payables and accrued liabilities also include individually insignificant amounts as of December 31, 2013 and December 31, 2012. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
13 | LONG-TERM DEBT | ||||||||
Long-term debt consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Funding program loans from European Investment Bank: | |||||||||
0.26% due 2014, floating interest rate at Libor + 0.017% | 20 | 40 | |||||||
0.26% due 2015, floating interest rate at Libor + 0.026% | 19 | 28 | |||||||
0.29% due 2016, floating interest rate at Libor + 0.052% | 58 | 77 | |||||||
0.56% due 2016, floating interest rate at Libor + 0.317% | 77 | 103 | |||||||
0.46% due 2016, floating interest rate at Libor + 0.213% | 86 | 114 | |||||||
1.34% due 2020, floating interest rate at Libor + 1.099% | 87 | 100 | |||||||
1.20% due 2020, floating interest rate at Libor + 0.956% | 193 | 221 | |||||||
1.04% due 2020, floating interest rate at Euribor + 0.817% | 121 | 132 | |||||||
0.88% due 2021, floating interest rate at Libor + 0.525% | 240 | — | |||||||
0.92% due 2021, floating interest rate at Libor + 0.572% | 231 | — | |||||||
Other funding program loans: | |||||||||
0.55% (weighted average), due 2014-2018, fixed interest rate | 5 | 7 | |||||||
Other long-term loans: | |||||||||
1.95% (weighted average), due 2017, fixed interest rate | 10 | 12 | |||||||
0.67% (weighted average), due 2018, fixed interest rate | 2 | — | |||||||
0.87% (weighted average), due 2020, fixed interest rate | 3 | — | |||||||
Capital leases: | |||||||||
5.95% (weighted average), due 2015-2017, fixed interest rate | 1 | 5 | |||||||
Senior Bonds: | |||||||||
0.58%, due 2013, floating interest rate at Euribor + 0.40% | — | 462 | |||||||
Total long-term debt | 1,153 | 1,301 | |||||||
Less current portion | (225 | ) | (630 | ) | |||||
Total long-term debt, less current portion | 928 | 671 | |||||||
Long-term debt is denominated in the following currencies: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
U.S. dollar | 1,012 | 689 | |||||||
Euro | 141 | 612 | |||||||
Total | 1,153 | 1,301 | |||||||
The European Investment Bank’s loans denominated in Euros, but drawn in U.S. dollars, are classified as U.S. dollar-denominated debt. | |||||||||
Aggregate future maturities of total long-term debt outstanding (including current portion) are as follows: | |||||||||
December 31, | |||||||||
2013 | |||||||||
2014 | 225 | ||||||||
2015 | 205 | ||||||||
2016 | 195 | ||||||||
2017 | 119 | ||||||||
2018 | 117 | ||||||||
Thereafter | 292 | ||||||||
Total | 1,153 | ||||||||
In March 2006, STMicroelectronics Finance B.V. (“ST BV”), a wholly owned subsidiary of the Company, issued floating rate senior bonds with a principal amount of Euro 500 million at an issue price of 99.873%. The notes, which matured on March 17, 2013, were paying a coupon rate of the three-month Euribor plus 0.40% on the 17th of June, September, December and March of each year through maturity. In 2010, the Company repurchased 74 thousand bonds for a total cash consideration of $98 million. In 2011, the Company repurchased around 76 thousand bonds for a total cash consideration of $107 million. The repurchased bonds have been cancelled in accordance with their terms. The residual portion of the floating rate senior bonds outstanding was repaid on March 17, 2013 with available cash. | |||||||||
Credit facilities | |||||||||
The Company had unutilized committed medium-term credit facilities with core relationship banks totalling $730 million as of December 31, 2013. The Company also has four committed long-term amortizing credit facilities with the European Investment Bank as part of R&D funding programs. The first one, signed on December 6, 2006 for a total of €245 million for R&D in France was fully drawn in U.S. dollars for a total amount of $341 million, of which $97 million remained outstanding as at December 31, 2013. The second one, signed on July 21, 2008, for a total amount of €250 million for R&D projects in Italy, was fully drawn in U.S. dollars for $380 million, of which $163 million remained outstanding as at December 31, 2013. The third one, signed on September 27, 2010 as a €350 million multi-currency loan for R&D programs in Europe, was drawn mainly in U.S. dollars for an amount of $321 million and only partially in Euros for an amount of €100 million, of which $401 million remained outstanding as at December 31, 2013. The fourth, signed on March 12, 2013, a €350 million multi-currency loan which also supports R&D programs, was drawn in U.S. dollars for $471 million, all of which remained outstanding as at December 31, 2013. |
PostEmployment_and_Other_LongT
Post-Employment and Other Long-Term Employees Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Post-Employment and Other Long-Term Employees Benefits | ' | ||||||||||||||||||||||||
14 | POST-EMPLOYMENT AND OTHER LONG-TERM EMPLOYEES BENEFITS | ||||||||||||||||||||||||
The Company and its subsidiaries have a number of defined benefit pension plans, mainly unfunded, and other long-term employees’ benefits covering employees in various countries. The defined benefit plans provide pension benefits based on years of service and employee compensation levels. The other long-term employees’ plans provide benefits due during the employees’ period of service after certain seniority levels. The Company uses a December 31 measurement date for its plans. Eligibility is generally determined in accordance with local statutory requirements. For Italian termination indemnity plan (“TFR”), generated before July 1, 2007, the Company continues to measure the vested benefits to which Italian employees are entitled as if they left the company immediately as of December 31, 2013, in compliance with U.S. GAAP guidance on determining vested benefit obligations for defined benefit pension plans. | |||||||||||||||||||||||||
The changes in benefit obligation and plan assets were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Long-Term Benefits | ||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | 901 | 794 | 63 | 52 | |||||||||||||||||||||
Service cost | 37 | 40 | 8 | 9 | |||||||||||||||||||||
Interest cost | 28 | 31 | 2 | 3 | |||||||||||||||||||||
Employee contributions | 5 | 6 | — | — | |||||||||||||||||||||
Benefits paid | (19 | ) | (21 | ) | (4 | ) | (3 | ) | |||||||||||||||||
Effect of curtailment | (3 | ) | — | (2 | ) | — | |||||||||||||||||||
Effect of settlement | (32 | ) | (31 | ) | — | — | |||||||||||||||||||
Actuarial (gain) loss | (92 | ) | 58 | — | 2 | ||||||||||||||||||||
Transfer in | 12 | 70 | 1 | 3 | |||||||||||||||||||||
Transfer out | (12 | ) | (70 | ) | (1 | ) | (3 | ) | |||||||||||||||||
Acquisition / change in scope | 9 | — | 1 | — | |||||||||||||||||||||
Plan amendment | 5 | 4 | — | — | |||||||||||||||||||||
ST-Ericsson deconsolidation | (49 | ) | — | (4 | ) | — | |||||||||||||||||||
Foreign currency translation adjustment | 17 | 20 | 1 | — | |||||||||||||||||||||
Benefit obligation at end of year | 807 | 901 | 65 | 63 | |||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Plan assets at fair value at beginning of year | 422 | 378 | — | — | |||||||||||||||||||||
Expected return on plan assets | 18 | 18 | — | — | |||||||||||||||||||||
Employer contributions | 29 | 34 | — | — | |||||||||||||||||||||
Employee contributions | 5 | 6 | — | — | |||||||||||||||||||||
Benefits paid | (9 | ) | (11 | ) | — | — | |||||||||||||||||||
Effect of settlement | (25 | ) | (30 | ) | — | — | |||||||||||||||||||
Actuarial gain (loss) | 14 | 17 | — | — | |||||||||||||||||||||
Transfer in | 8 | 40 | — | — | |||||||||||||||||||||
Transfer out | (8 | ) | (40 | ) | — | — | |||||||||||||||||||
Foreign currency translation adjustments | 5 | 10 | — | — | |||||||||||||||||||||
ST-Ericsson deconsolidation | (11 | ) | — | — | — | ||||||||||||||||||||
Plan assets at fair value at end of year | 448 | 422 | — | — | |||||||||||||||||||||
Funded status | (359 | ) | (479 | ) | (65 | ) | (63 | ) | |||||||||||||||||
Net amount recognized in the balance sheet consisted of the following: | |||||||||||||||||||||||||
Non-current assets | 10 | 5 | — | — | |||||||||||||||||||||
Current liabilities | (12 | ) | (16 | ) | (5 | ) | (3 | ) | |||||||||||||||||
Long-term liabilities | (357 | ) | (468 | ) | (60 | ) | (60 | ) | |||||||||||||||||
Net amount recognized | (359 | ) | (479 | ) | (65 | ) | (63 | ) | |||||||||||||||||
The components of accumulated other comprehensive income (loss) before tax effects were as follows: | |||||||||||||||||||||||||
Actuarial | Prior service | Total | |||||||||||||||||||||||
(gains)/losses | cost | ||||||||||||||||||||||||
Other comprehensive loss as at December 31, 2011 | 175 | 10 | 185 | ||||||||||||||||||||||
Net amount generated/arising in current year | 43 | 4 | 47 | ||||||||||||||||||||||
Amortization | (14 | ) | (5 | ) | (19 | ) | |||||||||||||||||||
Foreign currency translation adjustment | 5 | — | 5 | ||||||||||||||||||||||
Other comprehensive loss as at December 31, 2012 | 209 | 9 | 218 | ||||||||||||||||||||||
Net amount generated/arising in current year | (105 | ) | 5 | (100 | ) | ||||||||||||||||||||
Amortization | (15 | ) | (5 | ) | (20 | ) | |||||||||||||||||||
Foreign currency translation adjustment | 2 | — | 2 | ||||||||||||||||||||||
Other comprehensive loss as at December 31, 2013 | 91 | 9 | 100 | ||||||||||||||||||||||
In 2014, the Company expects to amortize $2 million of actuarial losses and $1 million of past service cost. | |||||||||||||||||||||||||
The accumulated benefit obligations were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Long-Term Benefits | ||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Accumulated benefit obligations | 717 | 779 | 51 | 49 | |||||||||||||||||||||
The components of the net periodic benefit cost included the following: | |||||||||||||||||||||||||
Pension Benefits | Other Long-term Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Service cost | 37 | 40 | 34 | 8 | 9 | 8 | |||||||||||||||||||
Interest cost | 28 | 31 | 33 | 2 | 3 | 3 | |||||||||||||||||||
Expected return on plan assets | (18 | ) | (18 | ) | (20 | ) | — | — | — | ||||||||||||||||
Amortization of actuarial net loss (gain) | 11 | 12 | 6 | — | 2 | (5 | ) | ||||||||||||||||||
Amortization of prior service cost | 5 | 5 | 1 | — | — | — | |||||||||||||||||||
Effect of settlement | 1 | — | (1 | ) | — | — | |||||||||||||||||||
Effect of curtailment | — | — | — | (2 | ) | — | — | ||||||||||||||||||
Net periodic benefit cost | 64 | 70 | 53 | 8 | 14 | 6 | |||||||||||||||||||
The weighted average assumptions used in the determination of the benefit obligation and the plan assets for the pension plans and the other long-term benefits were as follows: | |||||||||||||||||||||||||
Assumptions | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 3.83 | % | 3.43 | % | |||||||||||||||||||||
Salary increase rate | 2.82 | % | 2.92 | % | |||||||||||||||||||||
Expected long-term rate of return on funds for the pension expense of the year | 4.88 | % | 4.43 | % | |||||||||||||||||||||
The weighted average assumptions used in the determination of the net periodic benefit cost for the pension plans and the other long-term benefits were as follows: | |||||||||||||||||||||||||
Assumptions | Year ended | Year ended | Year ended | ||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Discount rate | 3.43 | % | 4.14 | % | 4.68 | % | |||||||||||||||||||
Salary increase rate | 2.92 | % | 2.99 | % | 3.13 | % | |||||||||||||||||||
Expected long-term rate of return on funds for the pension expense of the year | 4.43 | % | 4.57 | % | 4.99 | % | |||||||||||||||||||
The discount rate was determined by reference to market yields on high quality long-term corporate bonds applicable to the respective country of each plan, with terms consistent with the term of the benefit obligations concerned. In developing the expected long-term rate of return on assets, the Company modelled the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios. | |||||||||||||||||||||||||
The Company’s pension plan asset allocation at December 31, 2013 and at December 31, 2012 is as follows: | |||||||||||||||||||||||||
Percentage of Plan Assets at December | |||||||||||||||||||||||||
Asset Category | 2013 | 2012 | |||||||||||||||||||||||
Equity securities | 43 | % | 37 | % | |||||||||||||||||||||
Bonds securities remunerating interest | 30 | % | 31 | % | |||||||||||||||||||||
Real estate | 2 | % | 2 | % | |||||||||||||||||||||
Other | 25 | % | 30 | % | |||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2013 is as follows: | |||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 3) | ||||||||||||||||||||||||
Cash and cash equivalents | 7 | 7 | — | — | |||||||||||||||||||||
Equity securities | 192 | 7 | 185 | — | |||||||||||||||||||||
Government debt securities | 12 | 12 | — | — | |||||||||||||||||||||
Corporate debt securities | 122 | 4 | 118 | — | |||||||||||||||||||||
Investment funds | 1 | 1 | — | — | |||||||||||||||||||||
Real estate | 9 | — | 5 | 4 | |||||||||||||||||||||
Other (mainly insurance assets – contracts and reserves) | 105 | — | — | 105 | |||||||||||||||||||||
TOTAL | 448 | 31 | 308 | 109 | |||||||||||||||||||||
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2012 is as follows: | |||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 3) | ||||||||||||||||||||||||
Cash and cash equivalents | 5 | 5 | — | — | |||||||||||||||||||||
Equity securities | 156 | 9 | 147 | — | |||||||||||||||||||||
Government debt securities | 13 | 12 | 1 | — | |||||||||||||||||||||
Corporate debt securities | 119 | 4 | 115 | — | |||||||||||||||||||||
Investment funds | 7 | 1 | 3 | 3 | |||||||||||||||||||||
Real estate | 9 | — | 5 | 4 | |||||||||||||||||||||
Other (mainly insurance assets – contracts and reserves) | 113 | — | — | 113 | |||||||||||||||||||||
TOTAL | 422 | 31 | 271 | 120 | |||||||||||||||||||||
For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2013 and December 31, 2013 is presented as follows: | |||||||||||||||||||||||||
In millions of U.S. dollars | Fair Value Measurements | ||||||||||||||||||||||||
using Significant | |||||||||||||||||||||||||
Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
January 1, 2013 | 120 | ||||||||||||||||||||||||
Contributions (employer and employee) | 15 | ||||||||||||||||||||||||
Benefits paid | (2 | ) | |||||||||||||||||||||||
Settlements | (23 | ) | |||||||||||||||||||||||
ST-Ericsson deconsolidation | (4 | ) | |||||||||||||||||||||||
Foreign currency translation adjustment | 3 | ||||||||||||||||||||||||
31-Dec-13 | 109 | ||||||||||||||||||||||||
For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2012 and December 31, 2012 is presented as follows: | |||||||||||||||||||||||||
In millions of U.S. dollars | Fair Value Measurements | ||||||||||||||||||||||||
using Significant | |||||||||||||||||||||||||
Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
January 1, 2012 | 104 | ||||||||||||||||||||||||
Actual return on plan assets | 3 | ||||||||||||||||||||||||
Contributions (employer and employee) | 16 | ||||||||||||||||||||||||
Benefits paid | (3 | ) | |||||||||||||||||||||||
Settlements | (7 | ) | |||||||||||||||||||||||
Reclassification to Level 3 | 4 | ||||||||||||||||||||||||
Foreign currency translation adjustment | 3 | ||||||||||||||||||||||||
31-Dec-12 | 120 | ||||||||||||||||||||||||
The Company’s investment strategy for its pension plans is to optimize the long-term investment return on plan assets in relation to the liability structure to maintain an acceptable level of risk while minimizing the cost of providing pension benefits and maintaining adequate funding levels in accordance with applicable rules in each jurisdiction. The Company’s practice is to periodically conduct a review in each subsidiary of its asset allocation strategy, in such a way that the asset allocation is in line with the targeted asset allocation with reasonable boundaries. This was the case for year-end 2013. A portion of the fixed income allocation is reserved in short-term cash to provide for expected benefits to be paid. The Company’s asset portfolios are managed in such a way as to achieve adapted diversity and in certain jurisdictions they are entirely managed by the multi-employer funds. The Company does not manage any assets internally. | |||||||||||||||||||||||||
After considering the funded status of the Company’s defined benefit plans, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its pension plans in any given year in excess of required amounts. The Company contributions to plan assets were $29 million and $34 million in 2013 and 2012 respectively and the Company expects to contribute cash of $26 million in 2014. | |||||||||||||||||||||||||
The Company’s estimated future benefit payments as of December 2013 are as follows: | |||||||||||||||||||||||||
Years | Pension Benefits | Other Long-term Benefits | |||||||||||||||||||||||
2014 | 29 | 5 | |||||||||||||||||||||||
2015 | 21 | 9 | |||||||||||||||||||||||
2016 | 20 | 4 | |||||||||||||||||||||||
2017 | 34 | 4 | |||||||||||||||||||||||
2018 | 31 | 5 | |||||||||||||||||||||||
From 2019 to 2023 | 211 | 28 | |||||||||||||||||||||||
The Company has certain defined contribution plans, which accrue benefits for employees on a pro-rata basis during their employment period based on their individual salaries. The Company accrued benefits related to defined contribution pension plans of $19 million both as of December 31, 2013 and 2012. The annual cost of these plans amounted to approximately $89 million, $94 million and $98 million in 2013, 2012 and 2011, respectively. The benefits accrued to employees on a pro-rata basis, during their employment period, are based on the individuals’ salaries. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||||||||||||||||||||||
15 | SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||
15.1 | Outstanding shares | ||||||||||||||||||||||||||||||||||||||||
The authorized share capital of the Company is Euro 1,810 million consisting of 1,200,000,000 common shares and 540,000,000 preference shares, each with a nominal value of €1.04. As at December 31, 2013 the number of shares of common stock issued was 910,703,305 shares (910,559,805 at December 31, 2012). | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 the number of shares of common stock outstanding was 890,606,763 (887,953,202 at December 31, 2012). | |||||||||||||||||||||||||||||||||||||||||
15.2 | Preference shares | ||||||||||||||||||||||||||||||||||||||||
The 540,000,000 preference shares, when issued, will entitle a holder to full voting rights and to a preferential right to dividends and distributions upon liquidation. | |||||||||||||||||||||||||||||||||||||||||
On January 22, 2007, an option agreement was concluded between the Company and Stichting Continuïteit ST. This option agreement provides for the issuance of 540,000,000 preference shares. Any such shares should be issued by the Company to the Foundation, upon its request and in its sole discretion, upon payment of at least 25% of the par value of the preference shares to be issued. The issuing of the preference shares is conditional upon (i) the Company receiving an offer or there being the threat of such an offer; (ii) the Company’s Managing and Supervisory Boards deciding not to support such an offer and; (iii) the Board of the Foundation determining that such an offer or acquisition would be contrary to the interests of the Company, its shareholders and other stakeholders. The preference shares may remain outstanding for no longer than two years. There were no preference shares issued as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
15.3 | Treasury stock | ||||||||||||||||||||||||||||||||||||||||
Following the authorization by the Supervisory Board, announced on April 2, 2008, to repurchase up to 30 million shares of its common stock, the Company acquired 29,520,220 shares in 2008, also reflected at cost, as a reduction of the parent company stockholders’ equity. | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013, the Company owned a number of treasury shares equivalent to 20,096,542. | |||||||||||||||||||||||||||||||||||||||||
The treasury shares have been designated for allocation under the Company’s share based remuneration programs of unvested shares. As of December 31, 2013, 22,823,678 of these treasury shares were transferred to employees under the Company’s share based remuneration programs, of which 2,510,061 in the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
15.4 | Stock option plans | ||||||||||||||||||||||||||||||||||||||||
In 2001, the Shareholders voted to adopt the 2001 Employee Stock Option Plan (the “2001 Plan”) whereby options for up to 60,000,000 shares may be granted in installments over a five-year period. The options may be granted to purchase shares of common stock at a price not lower than the market price of the shares on the date of grant. In connection with a revision of its equity-based compensation policy, the Company decided in 2005 to accelerate the vesting period of all outstanding unvested stock options. The options expire ten years after the date of grant. | |||||||||||||||||||||||||||||||||||||||||
In 2002, the Shareholders voted to adopt a Stock Option Plan for Supervisory Board Members and Professionals of the Supervisory Board. Under this plan, 12,000 options could be granted per year to each member of the Supervisory Board and 6,000 options per year to each professional advisor to the Supervisory Board. Options vest thirty days after the date of grant and expire ten years after the date of grant. | |||||||||||||||||||||||||||||||||||||||||
A summary of the stock option activity for the plans for the three years ended December 31, 2013, 2012 and 2011 follows: | |||||||||||||||||||||||||||||||||||||||||
Exercise Price Per Share | |||||||||||||||||||||||||||||||||||||||||
Number of Shares | Range | Weighted | |||||||||||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2010 | 35,296,895 | $ | 16.73-$39.00 | $ | 27.17 | ||||||||||||||||||||||||||||||||||||
Options forfeited | (8,843,743 | ) | $ | 17.08-$39.00 | $ | 35.11 | |||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2011 | 26,453,152 | $ | 16.73-$33.70 | $ | 24.51 | ||||||||||||||||||||||||||||||||||||
Options forfeited | (9,762,680 | ) | $ | 17.08-$33.70 | $ | 30.5 | |||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 16,690,472 | $ | 16.73-$27.21 | $ | 21 | ||||||||||||||||||||||||||||||||||||
Options forfeited | (8,400,221 | ) | $ | 16.73-$27.21 | $ | 19.39 | |||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 8,290,251 | $ | 16.73-$27.21 | $ | 22.64 | ||||||||||||||||||||||||||||||||||||
The weighted average remaining contractual life of options outstanding as of December 31, 2013, 2012 and 2011 was 0.3, 0.8 and 1.2 years, respectively. | |||||||||||||||||||||||||||||||||||||||||
The range of exercise prices, the weighted average exercise price and the weighted average remaining contractual life of options exercisable as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||||
Number of shares | Option price | Weighted | Weighted | ||||||||||||||||||||||||||||||||||||||
Range | average | average | |||||||||||||||||||||||||||||||||||||||
exercise price | remaining | ||||||||||||||||||||||||||||||||||||||||
contractual life | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
1,900 | $25.90-$27.21 | $27.21 | 0.01 | ||||||||||||||||||||||||||||||||||||||
8,188,365 | $19.18-$22.83 | $22.71 | 0.32 | ||||||||||||||||||||||||||||||||||||||
99,986 | $16.73-$17.08 | $17.03 | 0.72 | ||||||||||||||||||||||||||||||||||||||
15.5 | Unvested share awards for the Supervisory Board | ||||||||||||||||||||||||||||||||||||||||
On an annual basis and until the year 2012, the Compensation Committee (on behalf of the Supervisory Board and with its approval) used to grant stock-based awards (the options to acquire common shares in the share capital of the Company) to the members and professionals of the Supervisory Board (“The Supervisory Board Plan”). The awards were granted at the nominal value of the share of €1.04 (exercise price of the option). The options granted under the Supervisory Board Plan vest and become exercisable immediately, while the shares resulting from these awards vest and therefore become available for trade evenly over three years (one third every year), with no market, performance or service conditions. | |||||||||||||||||||||||||||||||||||||||||
The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: | |||||||||||||||||||||||||||||||||||||||||
Year of grant | Options granted and | Options waived at | |||||||||||||||||||||||||||||||||||||||
vested | grant | ||||||||||||||||||||||||||||||||||||||||
2005 | 66,000 | (15,000 | ) | ||||||||||||||||||||||||||||||||||||||
2006 | 66,000 | (15,000 | ) | ||||||||||||||||||||||||||||||||||||||
2007 | 165,000 | (22,500 | ) | ||||||||||||||||||||||||||||||||||||||
2008 | 165,000 | (22,500 | ) | ||||||||||||||||||||||||||||||||||||||
2009 | 165,000 | (7,500 | ) | ||||||||||||||||||||||||||||||||||||||
2010 | 172,500 | (7,500 | ) | ||||||||||||||||||||||||||||||||||||||
2011 | 172,500 | (30,000 | ) | ||||||||||||||||||||||||||||||||||||||
2012 | 180,000 | (22,500 | ) | ||||||||||||||||||||||||||||||||||||||
2013 | No options granted | ||||||||||||||||||||||||||||||||||||||||
A summary of the options’ activity by plan for the years ended December 31, 2012 and December 31, 2013 is presented below: | |||||||||||||||||||||||||||||||||||||||||
Year | Outstanding | Granted | Waived | Exercised | Expired/ | Outstanding | Exercised | Expired / | Outstanding | Shares | |||||||||||||||||||||||||||||||
of | as of | and | at grant | Cancelled | as of | Cancelled | as of | corresponding | |||||||||||||||||||||||||||||||||
grant | 31.12.2011 | vested | 31.12.2012 | 31.12.2013 | to exercised | ||||||||||||||||||||||||||||||||||||
option not yet | |||||||||||||||||||||||||||||||||||||||||
available for | |||||||||||||||||||||||||||||||||||||||||
trade as of | |||||||||||||||||||||||||||||||||||||||||
31.12.2013 | |||||||||||||||||||||||||||||||||||||||||
2005 | 34,115 | — | — | — | — | 34,115 | (3,000 | ) | — | 31,115 | — | ||||||||||||||||||||||||||||||
2006 | 33,000 | — | — | — | — | 33,000 | (3,000 | ) | — | 30,000 | — | ||||||||||||||||||||||||||||||
2007 | 82,500 | — | — | — | — | 82,500 | (22,500 | ) | — | 60,000 | — | ||||||||||||||||||||||||||||||
2008 | 85,000 | — | — | — | — | 85,000 | (10,000 | ) | — | 75,000 | — | ||||||||||||||||||||||||||||||
2009 | 95,000 | — | — | — | — | 95,000 | (20,000 | ) | — | 75,000 | — | ||||||||||||||||||||||||||||||
2010 | 107,500 | — | — | — | — | 107,500 | (25,000 | ) | — | 82,500 | — | ||||||||||||||||||||||||||||||
2011 | 142,500 | — | — | — | — | 142,500 | (25,000 | ) | — | 117,500 | — | ||||||||||||||||||||||||||||||
2012 | — | 180,000 | (22,500 | ) | — | — | 157,500 | (35,000 | ) | — | 122,500 | 10,000 | |||||||||||||||||||||||||||||
The total intrinsic value of options exercised during the year 2013 amounted to $1 million. | |||||||||||||||||||||||||||||||||||||||||
At the Company’s Annual General Meeting of Shareholders held on 21 June 2013, it was resolved to abolish and terminate the stock-based compensation for the Supervisory Board members and professionals. | |||||||||||||||||||||||||||||||||||||||||
15.6 | Unvested share awards for the employees | ||||||||||||||||||||||||||||||||||||||||
On an annual basis, the Compensation Committee (on behalf of the Supervisory Board and with its approval) grants stock-based awards to the senior executives along with selected employees (the “Employee Plan”). The awards are granted for free under the Employee Plan. Until 2012 all the awards were subject to completion of the performance conditions. Starting from 2013, there are two types of unvested shares: (1) shares granted to employees, vesting independently on the performance conditions and (2) shares granted to senior executives, whose vesting is subject to three internal performance conditions (consisting of sales evolution and operating income compared to a basket of competitors and of cash flow compared with budget), each weighting for one third of the total number of awards granted. All the awards vest over a three year service period (32% as of the first anniversary of the grant, 32% as of the second anniversary of the grant and 36% as of the third anniversary of the grant (for awards granted until the end of 2012 under the French Subplan 64% vest as of the second anniversary of the grant and 36% as of the third anniversary). In addition, in 2012 there was a Special Bonus granted to the Company’s CEO. | |||||||||||||||||||||||||||||||||||||||||
The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: | |||||||||||||||||||||||||||||||||||||||||
Date of grant | Plan name | Number of | Number of | Number of shares | |||||||||||||||||||||||||||||||||||||
shares granted | shares waived | lost on | |||||||||||||||||||||||||||||||||||||||
performance | |||||||||||||||||||||||||||||||||||||||||
conditions | |||||||||||||||||||||||||||||||||||||||||
July 22, 2010 | 2010 Employee Plan | 6,344,725 | — | (2,076,448 | ) | ||||||||||||||||||||||||||||||||||||
December 17, 2010 | 2010 Employee Plan | 221,650 | — | (73,524 | ) | ||||||||||||||||||||||||||||||||||||
July 25, 2011 | 2011 Employee Plan | 5,881,630 | — | (5,824,445 | ) | ||||||||||||||||||||||||||||||||||||
November 14, 2011 | 2011 Employee Plan | 95,000 | — | (91,540 | ) | ||||||||||||||||||||||||||||||||||||
May 30, 2012 | 2012 CEO Special Bonus | 100,862 | — | — | |||||||||||||||||||||||||||||||||||||
July 23, 2012 | 2012 Employee Plan | 6,216,285 | (2,400 | ) | (1,991,558 | ) | |||||||||||||||||||||||||||||||||||
December 21, 2012 | 2012 Employee Plan | 304,480 | — | (100,373 | ) | ||||||||||||||||||||||||||||||||||||
July 22, 2013 | 2013 Employee Plan | 5,750,730 | — | (*) | |||||||||||||||||||||||||||||||||||||
December 18, 2013 | 2013 Employee Plan | 659,515 | — | (*) | |||||||||||||||||||||||||||||||||||||
December 27, 2013 | 2013 Employee Plan | 1,800 | — | — | |||||||||||||||||||||||||||||||||||||
(*) | As at December 31, 2013, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. | ||||||||||||||||||||||||||||||||||||||||
A summary of the unvested share activity by plan for the year ended December 31, 2013 is presented below: | |||||||||||||||||||||||||||||||||||||||||
Unvested Shares | Outstanding | Granted | Forfeited / | Cancelled on | Vested | Outstanding | |||||||||||||||||||||||||||||||||||
as at | waived | failed | as at | ||||||||||||||||||||||||||||||||||||||
December 31, | vesting | December 31, | |||||||||||||||||||||||||||||||||||||||
2012 | conditions | 2013 | |||||||||||||||||||||||||||||||||||||||
2010 Employee Plan | 1,485,836 | — | (21,180 | ) | — | (1,464,656 | ) | — | |||||||||||||||||||||||||||||||||
2012 CEO Special Bonus | 100,862 | — | — | — | (33,621 | ) | 67,241 | ||||||||||||||||||||||||||||||||||
2012 Employee Plan | 6,473,520 | — | (219,711 | ) | (2,091,931 | ) | (1,009,339 | ) | 3,152,539 | ||||||||||||||||||||||||||||||||
2013 Employee Plan | — | 6,412,045 | (30,280 | ) | — | (2,445 | ) | 6,379,320 | |||||||||||||||||||||||||||||||||
Total | 8,060,218 | 6,412,045 | (271,171 | ) | (2,091,931 | ) | (2,510,061 | ) | 9,599,100 | ||||||||||||||||||||||||||||||||
The grant date fair value of unvested shares granted to employees under the 2010 Employee Plan was $8.74. For the 2010 Employee Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grants. On April 26, 2011, the Compensation Committee approved the statement that two performance conditions were fully met. Consequently, the compensation expense recorded on the 2010 Employee Plan reflects the statement that two thirds of the awards granted fully vest, as far as the service condition is met. | |||||||||||||||||||||||||||||||||||||||||
The grant date fair value of unvested shares granted to employees under the 2011 Employee Plan was $9.08. For the 2011 Employee Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grants. On April 23, 2012, the Compensation Committee approved the statement that none of the three performance conditions were met. Consequently, the compensation expense recorded on the 2011 Employee Plan was reversed in the income statement for the year ended December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
The grant date fair value of unvested shares granted to the CEO under the 2012 CEO Special Bonus Plan was $6.32. On the 2012 CEO Special Bonus Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grant. | |||||||||||||||||||||||||||||||||||||||||
The grant date fair value of unvested shares granted to employees under the 2012 Employee Plan was $4.87. For the 2012 Employee Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grants. On April 11, 2013, the Compensation Committee approved the statement that two performance conditions were fully met. Consequently, the compensation expense recorded on the 2012 Employee Plan reflects the statement that two thirds of the awards granted will fully vest, as far as the service condition is met. | |||||||||||||||||||||||||||||||||||||||||
The grant date fair value of unvested shares granted to employees under the 2013 Employee Plan was $9.55. On the 2013 Employee Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grants. Moreover, for the portion of the shares subject to performance conditions (3,004,475 shares) the Company estimates the number of awards expected to vest by assessing the probability of achieving the performance conditions. At December 31, 2013, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. However, the Company has estimated that two thirds of the awards subject to performance conditions are expected to vest. Consequently, the compensation expense recorded for the 2013 Employee Plan reflects the vesting of two third of the awards granted with performance conditions, subject to the service condition being met. The assumption of the expected number of awards to be vested upon achievement of the performance conditions is subject to changes based on the final measurement of the conditions, which is expected to occur in the first half of 2014. | |||||||||||||||||||||||||||||||||||||||||
The following table illustrates the classification of pre-payroll tax and social contribution stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively: | |||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | 5 | 2 | 5 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 13 | 6 | 16 | ||||||||||||||||||||||||||||||||||||||
Research and development | 8 | 3 | 8 | ||||||||||||||||||||||||||||||||||||||
Total pre-payroll tax and social contribution compensation | 26 | 11 | 29 | ||||||||||||||||||||||||||||||||||||||
Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory was $2 million at December 31, 2013, $1 million at December 31, 2012 and $2 million at December 31, 2011. As of December 31, 2013 there was $42 million of total unrecognized compensation cost related to the grant of unvested shares, which is expected to be recognized over a weighted average period of approximately 10 months. | |||||||||||||||||||||||||||||||||||||||||
The total deferred income tax expense recognized in the consolidated statements of income related to unvested share-based compensation expense amounted to $5 million and $2 million for the years ended December 31, 2013 and 2012, respectively. The total deferred income tax benefit recognized in the consolidated statement of income related to unvested share-based compensation expense amounted to $7 million for the year ended December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||
15.7 | Accumulated other comprehensive income (loss) attributable to parent company stockholders | ||||||||||||||||||||||||||||||||||||||||
The table below details the changes in AOCI attributable to the company’s stockholders by component, net of tax, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||
Cash | Available- | Defined | Foreign | Total | |||||||||||||||||||||||||||||||||||||
Flow | For-Sale | Benefit | Currency | ||||||||||||||||||||||||||||||||||||||
Hedges | Securities | Pension | Translation | ||||||||||||||||||||||||||||||||||||||
Plan Items | Adjustments | ||||||||||||||||||||||||||||||||||||||||
(“CTA”) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | 61 | 26 | (88 | ) | 969 | 968 | |||||||||||||||||||||||||||||||||||
Cumulative tax impact | — | (4 | ) | 15 | — | 11 | |||||||||||||||||||||||||||||||||||
December 31, 2010, net of tax | 61 | 22 | (73 | ) | 969 | 979 | |||||||||||||||||||||||||||||||||||
OCI before reclassifications | (15 | ) | — | (81 | ) | (101 | ) | (197 | ) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (110 | ) | (33 | ) | 3 | — | (140 | ) | |||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2011 | (125 | ) | (33 | ) | (78 | ) | (101 | ) | (337 | ) | |||||||||||||||||||||||||||||||
Cumulative tax impact | 9 | 1 | 18 | — | 28 | ||||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2011, net of tax | (116 | ) | (32 | ) | (60 | ) | (101 | ) | (309 | ) | |||||||||||||||||||||||||||||||
December 31, 2011 | (64 | ) | (7 | ) | (166 | ) | 868 | 631 | |||||||||||||||||||||||||||||||||
Cumulative tax impact | 9 | (3 | ) | 33 | — | 39 | |||||||||||||||||||||||||||||||||||
December 31, 2011, net of tax | (55 | ) | (10 | ) | (133 | ) | 868 | 670 | |||||||||||||||||||||||||||||||||
OCI before reclassifications | 28 | 6 | (57 | ) | 64 | 41 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | 62 | — | 18 | — | 80 | ||||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2012 | 90 | 6 | (39 | ) | 64 | 121 | |||||||||||||||||||||||||||||||||||
Cumulative tax impact | (11 | ) | — | 14 | — | 3 | |||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2012, net of tax | 79 | 6 | (25 | ) | 64 | 124 | |||||||||||||||||||||||||||||||||||
December 31, 2012 | 26 | (1 | ) | (205 | ) | 932 | 752 | ||||||||||||||||||||||||||||||||||
Cumulative tax impact | (2 | ) | (3 | ) | 47 | — | 42 | ||||||||||||||||||||||||||||||||||
December 31, 2012, net of tax | 24 | (4 | ) | (158 | ) | 932 | 794 | ||||||||||||||||||||||||||||||||||
OCI before reclassifications | 40 | 2 | 80 | 104 | 226 | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (28 | ) | — | 14 | — | (14 | ) | ||||||||||||||||||||||||||||||||||
Impact of ST-Ericsson deconsolidation | — | — | 11 | 49 | 60 | ||||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2013 | 12 | 2 | 105 | 153 | 272 | ||||||||||||||||||||||||||||||||||||
Cumulative tax impact | (3 | ) | 3 | (24 | ) | — | (24 | ) | |||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2013, net of tax | 9 | 5 | 81 | 153 | 248 | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | 38 | 1 | (100 | ) | 1,085 | 1,024 | |||||||||||||||||||||||||||||||||||
Cumulative tax impact | (5 | ) | — | 23 | — | 18 | |||||||||||||||||||||||||||||||||||
December 31, 2013, net of tax | 33 | 1 | (77 | ) | 1,085 | 1,042 | |||||||||||||||||||||||||||||||||||
Items reclassified out of Accumulated Other Comprehensive Income for the years ended December 31, 2013, 2012 and 2011 are listed in the table below: | |||||||||||||||||||||||||||||||||||||||||
Details about AOCI components | Amounts | Amounts | Amounts | Affected line item | |||||||||||||||||||||||||||||||||||||
reclassified from | reclassified from | reclassified from | in the statement where net income | ||||||||||||||||||||||||||||||||||||||
AOCI in the | AOCI in the | AOCI in the | (loss) is presented | ||||||||||||||||||||||||||||||||||||||
year ended | year ended | year ended | |||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
Gains (Losses) on Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | 16 | (39 | ) | 65 | Cost of sales | ||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | 3 | (5 | ) | 8 | Selling, general and administrative | ||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | 14 | (27 | ) | 44 | Research and development | ||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | — | — | 6 | Gain (loss) on financial instruments, net | |||||||||||||||||||||||||||||||||||||
(4 | ) | 12 | (11 | ) | Income tax expense | ||||||||||||||||||||||||||||||||||||
29 | (59 | ) | 112 | Net of tax | |||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plan Items | |||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial gains (losses) | (1 | ) | (1 | ) | — | Cost of sales | |||||||||||||||||||||||||||||||||||
Amortization of actuarial gains (losses) | (5 | ) | (6 | ) | — | Selling, general and administrative | |||||||||||||||||||||||||||||||||||
Amortization of actuarial gains (losses) | (6 | ) | (7 | ) | (1 | ) | Research and development | ||||||||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | Cost of sales | |||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | — | Selling, general and administrative | |||||||||||||||||||||||||||||||||||
Amortization of prior service cost | (4 | ) | (4 | ) | (1 | ) | Research and development | ||||||||||||||||||||||||||||||||||
5 | 6 | 1 | Income tax benefit | ||||||||||||||||||||||||||||||||||||||
(12 | ) | (13 | ) | (1 | ) | Net of tax | |||||||||||||||||||||||||||||||||||
Gains (Losses) on Available-For-Sale Securities | |||||||||||||||||||||||||||||||||||||||||
Available-For-Sale Securities | — | — | 47 | OTTI and realized gains on financial assets | |||||||||||||||||||||||||||||||||||||
Available-For-Sale Securities | — | — | (14 | ) | Gain (loss) on financial instruments, net | ||||||||||||||||||||||||||||||||||||
— | — | — | Income tax expense | ||||||||||||||||||||||||||||||||||||||
— | — | 33 | Net of tax | ||||||||||||||||||||||||||||||||||||||
Total reclassifications for the year | 17 | (72 | ) | 144 | |||||||||||||||||||||||||||||||||||||
Attributable to noncontrolling interest | (2 | ) | 5 | (11 | ) | ||||||||||||||||||||||||||||||||||||
Attributable to the Company’s stockholders | 15 | (67 | ) | 133 | |||||||||||||||||||||||||||||||||||||
15.8 | Noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||
The noncontrolling interest was as follows: | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2010 | 910 | ||||||||||||||||||||||||||||||||||||||||
Business combination | 9 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (495 | ) | |||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivatives, net of tax | (10 | ) | |||||||||||||||||||||||||||||||||||||||
Other components of other comprehensive income (loss), net of tax | (16 | ) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (26 | ) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (521 | ) | |||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | (5 | ) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | 393 | ||||||||||||||||||||||||||||||||||||||||
Contribution of noncontrolling interest | 765 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
Net loss | (1,030 | ) | |||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivatives, net of tax | 10 | ||||||||||||||||||||||||||||||||||||||||
Other components of other comprehensive income (loss), net of tax | 6 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 16 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (1,014 | ) | |||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | (5 | ) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | 139 | ||||||||||||||||||||||||||||||||||||||||
Joint ventures deconsolidation | 73 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
Net loss | (129 | ) | |||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivatives, net of tax | (3 | ) | |||||||||||||||||||||||||||||||||||||||
Other components of other comprehensive income (loss), net of tax | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (5 | ) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (134 | ) | |||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | (4 | ) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | 74 | ||||||||||||||||||||||||||||||||||||||||
In December 2012 both parents decided to forgive their respective loans to ST-Ericsson. The Ericsson part of the loan forgiven was recorded as a contribution of noncontrolling interest. | |||||||||||||||||||||||||||||||||||||||||
15.9 | Dividends | ||||||||||||||||||||||||||||||||||||||||
The Extraordinary General Meeting of Shareholders held on December 2, 2013 authorized the distribution of a semi-annual cash dividend per common share of $0.10 in the fourth quarter of 2013 and $0.10 in the first quarter of 2014, to be paid in December 2013 and March 2014, respectively. The first payment, totaling $89 million, was executed in December 2013. The remaining $0.10 per share cash dividend to be paid in the first quarter of 2014 totaled $89 million and was reported as “Dividends payable to stockholders” on the consolidated balance sheet as at December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
The Annual General Meeting of Shareholders held on June 21, 2013 authorized the distribution of a semi-annual cash dividend per common share of $0.10 in the second quarter of 2013 and $0.10 in the third quarter of 2013, to be paid in June and September of 2013, respectively. The first payment for Euronext Paris and Borsa Italiana, amounting to $75 million, was executed in the second quarter of 2013. The first payment for the New York Stock Exchange which was executed in July 2013 and the remaining $0.10 per share cash dividend, totaling $93 million, was paid in the third quarter of 2013. | |||||||||||||||||||||||||||||||||||||||||
At the Company’s Annual General Meeting of Shareholders held on May 30, 2012, the distribution of a cash dividend of $0.40 per common share, amounting to approximately $355 million, to be paid in four equal installments, was adopted by the Company’s shareholders. Through December 31, 2012, three installments were paid for an amount of $266 million including withholding tax. The remaining $0.10 per share cash dividend to be paid in the first quarter of 2013 totaled $89 million and was reported as “Dividends payable to stockholders” on the consolidated balance sheet as at December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
In 2011 the cash dividend was $0.40 per share for a total amount paid of $354 million. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
16 | EARNINGS PER SHARE | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, earnings per share (“EPS”) was calculated as follows: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Basic EPS | |||||||||||||
Net income (loss) attributable to parent company | (500 | ) | (1,158 | ) | 650 | ||||||||
Weighted average shares outstanding | 889,541,922 | 886,699,953 | 883,619,377 | ||||||||||
Basic EPS | (0.56 | ) | (1.31 | ) | 0.74 | ||||||||
Diluted EPS | |||||||||||||
Net income (loss) attributable to parent company | (500 | ) | (1,158 | ) | 650 | ||||||||
Convertible debt interest | — | — | 5 | ||||||||||
Net income (loss) attributable to parent company adjusted | (500 | ) | (1,158 | ) | 655 | ||||||||
Weighted average shares outstanding | 889,541,922 | 886,699,953 | 883,619,377 | ||||||||||
Dilutive effect of unvested shares | — | — | 3,771,729 | ||||||||||
Dilutive effect of convertible debt | — | — | 17,073,640 | ||||||||||
Number of shares used in calculating diluted EPS | 889,541,922 | 886,699,953 | 904,464,746 | ||||||||||
Diluted EPS | (0.56 | ) | (1.31 | ) | 0.72 | ||||||||
In 2013 and 2012, if the Company had reported income, outstanding stock options would have included anti-dilutive shares totalling approximately 8,290,251 shares and 16,690,472 shares, respectively. In 2011 outstanding stock options included anti-dilutive shares totalling approximately 26,453,152 shares. |
Other_Income_and_Expenses_Net
Other Income and Expenses, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Income and Expenses, Net | ' | ||||||||||||
17 | OTHER INCOME AND EXPENSES, NET | ||||||||||||
Other income and expenses, net consisted of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Research and development funding | 57 | 102 | 128 | ||||||||||
Phase-out and start-up costs | (4 | ) | — | (8 | ) | ||||||||
Exchange gain, net | 8 | 5 | 8 | ||||||||||
Patent costs | (40 | ) | (20 | ) | (28 | ) | |||||||
Gain on sale of businesses and non-current assets | 83 | 9 | 15 | ||||||||||
Other, net | (9 | ) | (5 | ) | (6 | ) | |||||||
Total | 95 | 91 | 109 | ||||||||||
The Company receives significant public funding from governmental agencies in several jurisdictions. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions have been met. | |||||||||||||
Phase-out costs are costs incurred during the closing stage of a Company’s manufacturing facility. They are treated in the same manner as start-up costs. Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six months after the fabrication line’s quality certification. | |||||||||||||
Exchange gains and losses included in “Other income and expenses, net” represent the portion of exchange rate changes on transactions denominated in currencies other than an entity’s functional currency and the changes in fair value of trading derivative instruments which are not designated as hedge and which have a cash flow effect related to operating transactions, as described in Note 23. | |||||||||||||
Patent costs include legal and attorney fees and payment for claims, patent pre-litigation consultancy and legal fees. They are reported net of settlements, if any, which primarily include reimbursements of prior patent litigation costs. | |||||||||||||
Gain on sale of businesses and non-current assets is mostly related to the sale of businesses and non-current assets associated with the Global Navigation Satellite System (GNSS) and with the sale of Portland Compiler Group (PGI), both realized in the third quarter of 2013. |
Impairment_Restructuring_Charg
Impairment, Restructuring Charges and Other Related Closure Costs | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Impairment, Restructuring Charges and Other Related Closure Costs | ' | ||||||||||||||||||||||||||||||||
18 | IMPAIRMENT, RESTRUCTURING CHARGES AND OTHER RELATED CLOSURE COSTS | ||||||||||||||||||||||||||||||||
Impairment, restructuring charges and other related closure costs incurred in 2013, 2012, and 2011 are summarized as follows: | |||||||||||||||||||||||||||||||||
Year ended | Impairment | Restructuring | Other related | Total impairment, | |||||||||||||||||||||||||||||
December 31, 2013 | charges | closure costs | restructuring | ||||||||||||||||||||||||||||||
charges and other | |||||||||||||||||||||||||||||||||
related closure costs | |||||||||||||||||||||||||||||||||
ST-Ericsson restructuring plans | — | (6 | ) | (3 | ) | (9 | ) | ||||||||||||||||||||||||||
ST-Ericsson exit | (17 | ) | (69 | ) | — | (86 | ) | ||||||||||||||||||||||||||
Digital restructuring plan | (2 | ) | (1 | ) | (2 | ) | (5 | ) | |||||||||||||||||||||||||
$600-650 million net opex plan | — | (88 | ) | — | (88 | ) | |||||||||||||||||||||||||||
Manufacturing consolidation | (29 | ) | (8 | ) | — | (37 | ) | ||||||||||||||||||||||||||
Annual impairment test | (56 | ) | — | — | (56 | ) | |||||||||||||||||||||||||||
Assets held for sale impairment | (5 | ) | — | — | (5 | ) | |||||||||||||||||||||||||||
Other restructuring initiatives | — | (6 | ) | — | (6 | ) | |||||||||||||||||||||||||||
Total | (109 | ) | (178 | ) | (5 | ) | (292 | ) | |||||||||||||||||||||||||
Year ended | Impairment | Restructuring | Other related | Total impairment, | |||||||||||||||||||||||||||||
December 31, 2012 | charges | closure costs | restructuring | ||||||||||||||||||||||||||||||
charges and other | |||||||||||||||||||||||||||||||||
related closure costs | |||||||||||||||||||||||||||||||||
Manufacturing restructuring plan | (21 | ) | — | (2 | ) | (23 | ) | ||||||||||||||||||||||||||
ST-Ericsson restructuring plan | — | (1 | ) | — | (1 | ) | |||||||||||||||||||||||||||
ST-Ericsson cost savings plan | — | (10 | ) | (10 | ) | (20 | ) | ||||||||||||||||||||||||||
ST-Ericsson April 2012 restructuring plan | (2 | ) | (60 | ) | (4 | ) | (66 | ) | |||||||||||||||||||||||||
ST-Ericsson exit | (544 | ) | — | — | (544 | ) | |||||||||||||||||||||||||||
Digital restructuring plan | (7 | ) | (13 | ) | — | (20 | ) | ||||||||||||||||||||||||||
Annual impairment test | (694 | ) | — | — | (694 | ) | |||||||||||||||||||||||||||
Other restructuring initiatives | — | — | (8 | ) | (8 | ) | |||||||||||||||||||||||||||
Total | (1,268 | ) | (84 | ) | (24 | ) | (1,376 | ) | |||||||||||||||||||||||||
Year ended | Impairment | Restructuring | Other related | Total impairment, | |||||||||||||||||||||||||||||
December 31, 2011 | charges | closure costs | restructuring | ||||||||||||||||||||||||||||||
charges and other | |||||||||||||||||||||||||||||||||
related closure costs | |||||||||||||||||||||||||||||||||
Manufacturing restructuring plan | (3 | ) | (13 | ) | (21 | ) | (37 | ) | |||||||||||||||||||||||||
ST-Ericsson restructuring plan | (1 | ) | (3 | ) | (3 | ) | (7 | ) | |||||||||||||||||||||||||
ST-Ericsson cost savings plan | — | (26 | ) | — | (26 | ) | |||||||||||||||||||||||||||
Other restructuring initiatives | — | (1 | ) | (4 | ) | (5 | ) | ||||||||||||||||||||||||||
Total | (4 | ) | (43 | ) | (28 | ) | (75 | ) | |||||||||||||||||||||||||
Impairment charges | |||||||||||||||||||||||||||||||||
In 2013, the Company recorded impairment charges of $109 million corresponding primarily to: | |||||||||||||||||||||||||||||||||
• | $56 million, as part of the annual impairment test performed during the third quarter, on Digital Convergence Group goodwill ($38 million) and dedicated intangible assets ($18 million); | ||||||||||||||||||||||||||||||||
• | $29 million on certain long-lived assets as part of the Company’s manufacturing consolidation; | ||||||||||||||||||||||||||||||||
• | $17 million impairment primarily related to long-lived assets as part of the exit of ST-Ericsson; and | ||||||||||||||||||||||||||||||||
• | $5 million impairment charge on Veredus assets classified as Assets held for sale, as of December 31, 2013. | ||||||||||||||||||||||||||||||||
In 2012, the Company recorded impairment charges of $1,268 million corresponding to: | |||||||||||||||||||||||||||||||||
• | $1,234 million on Wireless goodwill and other intangible assets of which $690 million impairment on Wireless goodwill as part of the annual impairment test performed during the third quarter and $544 million impairment on Wireless goodwill and other intangible assets recorded in December following the Company’s decision to exit ST-Ericsson. The $1,234 million amount is composed of an impairment charge of $922 million on Wireless goodwill, $261 million impairment on Wireless customer relationships, $45 million impairment on Wireless capitalized software and $6 million impairment on acquired technology; | ||||||||||||||||||||||||||||||||
• | $21 million impairment on the Carrollton (Texas) building and facilities; | ||||||||||||||||||||||||||||||||
• | $7 million impairment charges on intangibles for which no alternative future use was identified within the Company, as part of the Digital restructuring plan; | ||||||||||||||||||||||||||||||||
• | $4 million impairment on certain intangibles as part of the annual impairment test; and | ||||||||||||||||||||||||||||||||
• | $2 million impairment charges primarily related to long-lived assets with no alternative future use within the Company. | ||||||||||||||||||||||||||||||||
In 2011, the Company recorded impairment charges of $4 million primarily related to long-lived assets for which no alternative future use was identified within the Company. | |||||||||||||||||||||||||||||||||
Restructuring charges and other related closure costs | |||||||||||||||||||||||||||||||||
The Company is currently engaged in three major restructuring plans, the Manufacturing consolidation plan, the $600-650 million net opex plan and the Digital restructuring plan which are described hereafter. | |||||||||||||||||||||||||||||||||
In July 2013, the Company announced that it will wind down certain 6-inch manufacturing lines and consolidate back-end activities in China to Shenzhen (the “Manufacturing consolidation plan”). | |||||||||||||||||||||||||||||||||
Further to the announcement on December 10, 2012 to reduce the Company’s net operating expenses comprised of combined selling, general and administrative and research and development expenses, net of R&D grants, to the level of $600 million to $650 million on a quarterly basis by the beginning of 2014, the Company committed restructuring actions in 2013 (the “$600-650 million net opex plan”). | |||||||||||||||||||||||||||||||||
In October 2012, the Company announced a savings plan (the “Digital restructuring plan”), impacting primarily the Digital Convergence Group product line, designed to achieve $150 million in annual savings upon completion by the end of 2013. | |||||||||||||||||||||||||||||||||
In 2013, the Company incurred restructuring charges and other related closure costs for $183 million corresponding to: | |||||||||||||||||||||||||||||||||
• | $88 million for the $600-650 million net opex plan corresponding to employee termination benefits; | ||||||||||||||||||||||||||||||||
• | $69 million recorded before ST-Ericsson deconsolidation for the ST-Ericsson exit, primarily related to employee termination benefits, net of an adjustment of $31 million mainly resulting from a significant reduction of estimated restructured employees in Sweden, as part of the exit of ST-Ericsson; | ||||||||||||||||||||||||||||||||
• | $9 million recorded before ST-Ericsson deconsolidation for the ST-Ericsson restructuring plans, primarily related to employee termination benefits; | ||||||||||||||||||||||||||||||||
• | $8 million for the Manufacturing consolidation plan corresponding to employee termination benefits; and | ||||||||||||||||||||||||||||||||
• | $9 million for other restructuring plans. | ||||||||||||||||||||||||||||||||
In 2012, the Company incurred restructuring charges and other related closure costs for $108 million corresponding to: | |||||||||||||||||||||||||||||||||
• | $64 million for the ST-Ericsson April 2012 restructuring plan composed of $60 million employee termination benefits and $4 million other closure costs mainly related to lease contract terminations pursuant to the closure of certain locations; | ||||||||||||||||||||||||||||||||
• | $20 million for the ST-Ericsson cost savings plan primarily related to employee termination benefits and lease contract termination costs recorded at cease-use date pursuant to the closure of certain locations; | ||||||||||||||||||||||||||||||||
• | $13 million for the Digital restructuring plan primarily related to employee termination benefits; and | ||||||||||||||||||||||||||||||||
• | $11 million for other restructuring plans. | ||||||||||||||||||||||||||||||||
In 2011, the Company incurred restructuring charges and other related closures costs for $71 million corresponding to: | |||||||||||||||||||||||||||||||||
• | $34 million for the manufacturing restructuring plan, corresponding primarily to lease contract termination costs recorded at cease-use date and one-time termination benefits to be paid to employees who rendered services until the complete closure of the Carrollton (Texas) and Phoenix (Arizona) fabs. This plan was substantially finalized in the second quarter of 2011; | ||||||||||||||||||||||||||||||||
• | $26 million for the ST-Ericsson cost savings plan, consisting mainly in ongoing termination benefits accrued for involuntary leaves and benefits paid within voluntary leave arrangements; | ||||||||||||||||||||||||||||||||
• | $6 million for the ST-Ericsson restructuring plan composed of $3 million employee termination benefits and $3 million lease contract termination costs and other closure costs pursuant to the closure of certain locations; and | ||||||||||||||||||||||||||||||||
• | $5 million restructuring charges and other related closure costs related to other committed restructuring initiatives. | ||||||||||||||||||||||||||||||||
Changes to the restructuring provisions recorded on the consolidated balance sheets from December 31, 2011 to December 31, 2013 are summarized as follows: | |||||||||||||||||||||||||||||||||
ST-Ericsson | ST-Ericsson | $600-650 | Digital | Manufacturing | Manufacturing | Other | Total | ||||||||||||||||||||||||||
exit | restructuring | million | restructuring | Restructuring | consolidation | restructuring | |||||||||||||||||||||||||||
plans | net opex | plan | plan | initiatives | |||||||||||||||||||||||||||||
plan | |||||||||||||||||||||||||||||||||
Provision as at December 31, 2011 | — | 36 | — | — | 4 | — | 13 | 53 | |||||||||||||||||||||||||
Charges incurred in 2012 | 8 | 96 | — | 13 | 2 | — | 3 | 122 | |||||||||||||||||||||||||
Adjustments for unused provisions | — | (11 | ) | — | — | — | — | (3 | ) | (14 | ) | ||||||||||||||||||||||
Amounts paid | — | (65 | ) | — | (1 | ) | (3 | ) | — | (4 | ) | (73 | ) | ||||||||||||||||||||
Currency translation effect | — | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||||||
Provision as at December 31, 2012 | 8 | 59 | — | 12 | 3 | — | 9 | 91 | |||||||||||||||||||||||||
Charges incurred in 2013 | 100 | 12 | 88 | 3 | — | 8 | 6 | 217 | |||||||||||||||||||||||||
Adjustments for unused provisions | (31 | ) | (3 | ) | — | — | — | — | — | (34 | ) | ||||||||||||||||||||||
Amounts paid | (30 | ) | (56 | ) | (44 | ) | (9 | ) | (1 | ) | — | (7 | ) | (147 | ) | ||||||||||||||||||
Currency translation effect | (1 | ) | — | 2 | — | — | — | — | 1 | ||||||||||||||||||||||||
ST-Ericsson break-up and deconsolidation | (46 | ) | (12 | ) | — | — | — | — | 6 | (52 | ) | ||||||||||||||||||||||
Provision as at December 31, 2013 | — | — | 46 | 6 | 2 | 8 | 14 | 76 | |||||||||||||||||||||||||
An amount of $65 million is expected to be paid within twelve months, as detailed in Note 12. | |||||||||||||||||||||||||||||||||
The manufacturing restructuring plan, which was expected to result in pre-tax charges in the range of $270 to $300 million, resulted in a total charge of $313 million. This plan is now completed. | |||||||||||||||||||||||||||||||||
The Digital restructuring plan is expected to result in a total pre-tax charge of $25 million to $30 million, of which $16 million have been incurred as of December 31, 2013. The plan is substantially completed in 2013. | |||||||||||||||||||||||||||||||||
The $600-650 million net opex plan resulted in an $88 million charge incurred as of December 31, 2013. The plan is currently expected to be completed in 2014. | |||||||||||||||||||||||||||||||||
The Manufacturing consolidation plan resulted in an $8 million charge incurred as of December 31, 2013. The plan is expected to be completed in 2015. | |||||||||||||||||||||||||||||||||
Upon the ST-Ericsson deconsolidation as of September 1, 2013, all the ST-Ericsson restructuring plans have been deconsolidated by the Company. | |||||||||||||||||||||||||||||||||
In 2013, total amounts paid for restructuring and related closure costs amounted to $147 million. The total actual costs that the Company will incur may differ from these estimates based on the timing required to complete the restructuring plan, the number of people involved, the final agreed termination benefits and the costs associated with the transfer of equipment, products and processes. |
Interest_Expense_Net
Interest Expense, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Banking And Thrift Interest [Abstract] | ' | ||||||||||||
Interest Expense, Net | ' | ||||||||||||
19 | INTEREST EXPENSE, NET | ||||||||||||
Interest expense, net consisted of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income | 18 | 41 | 21 | ||||||||||
Expense | (23 | ) | (76 | ) | (46 | ) | |||||||
Total | (5 | ) | (35 | ) | (25 | ) | |||||||
No borrowing cost was capitalized in 2013, 2012 and 2011. Interest income on government Bonds and floating rate notes classified as available-for-sale marketable securities amounted to less than $1 million for the year ended December 31, 2013, $2 million for the year ended December 31, 2012 and to $6 million for the year ended December 31, 2011. | |||||||||||||
In 2013, net interest included a one-time interest payment received with respect to a U.S. tax refund in the second quarter of 2013. |
Income_Tax
Income Tax | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax | ' | ||||||||||||
20 | INCOME TAX | ||||||||||||
Income (loss) before income tax is comprised of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income (loss) recorded in The Netherlands | (30 | ) | (33 | ) | 54 | ||||||||
Income (loss) from foreign operations | (562 | ) | (2,104 | ) | 282 | ||||||||
Income (loss) before income tax benefit (expense) | (592 | ) | (2,137 | ) | 336 | ||||||||
STMicroelectronics N.V. and its subsidiaries are individually liable for income taxes in their jurisdictions. Tax losses can only offset profits generated by the taxable entity incurring such loss. | |||||||||||||
Income tax benefit (expense) is comprised of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
The Netherlands taxes – current | 5 | (1 | ) | (11 | ) | ||||||||
Foreign taxes – current | (90 | ) | (130 | ) | (104 | ) | |||||||
Current taxes | (85 | ) | (131 | ) | (115 | ) | |||||||
The Netherlands taxes – deferred | — | — | (2 | ) | |||||||||
Foreign taxes – deferred | 48 | 80 | (64 | ) | |||||||||
Income tax benefit (expense) | (37 | ) | (51 | ) | (181 | ) | |||||||
The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2013, 2012 and 2011, and the effective income tax rate are the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax benefit (expense) computed at statutory rate | 148 | 534 | (84 | ) | |||||||||
Non-deductible, non-taxable and other permanent differences, net | (2 | ) | (81 | ) | (2 | ) | |||||||
Income (loss) on equity-method investments | (31 | ) | (6 | ) | (7 | ) | |||||||
Valuation allowance adjustments | (83 | ) | (197 | ) | (130 | ) | |||||||
Current year credits | 60 | 77 | 94 | ||||||||||
Other tax and credits | (42 | ) | (17 | ) | (32 | ) | |||||||
Benefits from tax holidays | 18 | 38 | 113 | ||||||||||
Impact of uncertain tax positions | (33 | ) | (83 | ) | (2 | ) | |||||||
Earnings of subsidiaries taxed at different rates | (72 | ) | (316 | ) | (131 | ) | |||||||
Income tax benefit (expense) | (37 | ) | (51 | ) | (181 | ) | |||||||
The valuation allowance adjustments of 2013 include $32 million related to the activities of ST-Ericsson companies until their deconsolidation. In 2013, 2012 and 2011, the line “Earnings of subsidiaries taxed at different rates” includes a decrease of $57 million, $320 million and $131 million, respectively, mainly related to tax rate differences due to tax holidays for countries in a loss position. | |||||||||||||
The tax holidays represent a tax exemption period aimed to attract foreign technological investment in certain tax jurisdictions. The effect of the tax benefits, from tax holidays for countries which are profitable, on basic earnings per share was $0.02, $0.04 and $0.13 for the years ended December 31, 2013, 2012, and 2011, respectively. These agreements are present in various countries and include programs that reduce up to and including 100% of taxes in years affected by the agreements. The Company’s tax holidays expire at various dates through the year ending December 31, 2022. In certain countries, tax holidays can be renewed depending on the Company still meeting certain conditions at the date of expiration of the current tax holidays. | |||||||||||||
Deferred tax assets and liabilities consisted of the following: | |||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Tax loss carryforwards and investment credits | 658 | 820 | |||||||||||
Less unrecognized tax benefit | (229 | ) | |||||||||||
Tax loss carryforward net of unrecognized tax benefit | 429 | 820 | |||||||||||
Inventory valuation | 14 | 24 | |||||||||||
Impairment and restructuring charges | 63 | 61 | |||||||||||
Fixed asset depreciation in arrears | 58 | 75 | |||||||||||
Capitalized development costs | 45 | ||||||||||||
Receivables for government funding | 22 | 15 | |||||||||||
Tax credits granted on past capital investments | 1,131 | 1,114 | |||||||||||
Pension service costs | 66 | 97 | |||||||||||
Stock awards | 2 | — | |||||||||||
Commercial accruals | 10 | 10 | |||||||||||
Other temporary differences | 70 | 98 | |||||||||||
Total deferred tax assets | 1,910 | 2,314 | |||||||||||
Valuation allowances | (1,454 | ) | (1,634 | ) | |||||||||
Deferred tax assets, net | 456 | 680 | |||||||||||
Accelerated fixed asset depreciation | (58 | ) | (64 | ) | |||||||||
Acquired intangible assets | (11 | ) | (30 | ) | |||||||||
Advances of government funding | (35 | ) | (26 | ) | |||||||||
Other temporary differences | (13 | ) | (34 | ) | |||||||||
Deferred tax liabilities | (117 | ) | (154 | ) | |||||||||
Net deferred income tax asset | 339 | 526 | |||||||||||
At the end of December 2013, the tax loss carryforward and the valuation allowance decreased by $240 and $258 million respectively, mainly due to the deconsolidation of ST-Ericsson companies. | |||||||||||||
For a particular tax-paying component of the Company and within a particular tax jurisdiction, all current deferred tax liabilities and assets are offset and presented as a single amount, similarly to non-current deferred tax liabilities and assets. The Company does not offset deferred tax liabilities and assets attributable to different tax-paying components or to different tax jurisdictions. | |||||||||||||
The net deferred tax assets are recorded in legal entities which have been historically profitable and are expected to be profitable in the next coming years. | |||||||||||||
As of December 31, 2013, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2014, as follows: | |||||||||||||
Year | |||||||||||||
2014 | 8 | ||||||||||||
2015 | 22 | ||||||||||||
2016 | 19 | ||||||||||||
2017 | 15 | ||||||||||||
2018 | 13 | ||||||||||||
Thereafter | 581 | ||||||||||||
Total | 658 | ||||||||||||
The valuation allowance for a particular tax jurisdiction is allocated between current and non-current deferred tax assets for that jurisdiction on a pro rata basis. The “Tax credits granted on past capital investments” mainly related to a 2003 agreement granting the Company certain tax credits for capital investments purchased through the year ending December 31, 2006. Any unused tax credits granted under the agreement will continue to increase yearly by a legal inflationary index (currently 0.56% per annum). The credits may be utilized through 2020 or later depending on the Company meeting certain program criteria. In addition to this agreement, starting in 2007 the Company continues to receive tax credits on the yearly capital investments, which may be used to offset that year’s tax liabilities and increases by the legal inflationary rate. However, pursuant to the inability to utilize these credits currently and in future years, the Company did not recognize any deferred tax asset on such tax allowance. As a result, there is no financial impact to the net deferred tax assets of the Company. | |||||||||||||
The amount of deferred tax benefit (expense) recorded as a component of other comprehensive income (loss) was $(31) million in 2013 and was related primarily to the tax effects of the recognized unfunded status on defined benefits plan. In 2012, it was not material. | |||||||||||||
The cumulative amount of distributable earnings related to the Company’s investments in foreign subsidiaries and corporate joint ventures was $859 million as at December 31, 2013. Due to the Company’s legal and tax structure, with the parent company established in the Netherlands, there was no significant tax impact from the distribution of earnings from investments in foreign subsidiaries and corporate joint ventures. This is because there is no tax impact on dividends paid up to a Dutch holding company. | |||||||||||||
A reconciliation of 2013, 2012 and 2011 beginning and ending amounts of unrecognized tax benefits is as follows: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | 227 | 148 | 149 | ||||||||||
Additions based on tax positions related to the current year | 52 | 44 | 36 | ||||||||||
Additions for tax positions of prior years | 27 | 39 | 19 | ||||||||||
Reduction for tax positions of prior years | (48 | ) | — | (3 | ) | ||||||||
Reduction for lapse of statute of limitations | (50 | ) | |||||||||||
Reduction due to ST-Ericsson deconsolidation | (8 | ) | — | — | |||||||||
Settlements | — | (1 | ) | — | |||||||||
Prepayment | (1 | ) | (6 | ) | |||||||||
Foreign currency translation | 6 | 3 | (3 | ) | |||||||||
Balance at end of year | 255 | 227 | 148 | ||||||||||
At December 31, 2013, $229 million of unrecognized tax benefits were classified as a reduction of deferred tax assets. At December 31, 2013, there were no unrecognized tax benefits that if recognized would affect the annual effective tax rate while at December 31, 2012, there were $26 million. It is reasonably possible that certain of the uncertain tax positions disclosed in the table above could increase within the next 12 months due to ongoing tax audits. The Company is not able to make an estimate of the range of the reasonably possible change. | |||||||||||||
Additionally, the Company elected to classify accrued interest and penalties related to uncertain tax positions as components of income tax expense in its consolidated statements of income. Interest and penalties are not material for the years presented or on a cumulative basis. | |||||||||||||
The tax years that remain open for review in the Company’s major tax jurisdictions, including France, Italy, United States and India, are from 1996 to 2013. |
Commitments
Commitments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Commitments | ' | ||||||||||||||||||||||||||||
21 | COMMITMENTS | ||||||||||||||||||||||||||||
The Company’s commitments as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||
In millions of U.S. dollars | Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||
Operating leases | 242 | 54 | 37 | 29 | 26 | 22 | 74 | ||||||||||||||||||||||
Purchase obligations | 434 | 383 | 48 | 3 | — | — | — | ||||||||||||||||||||||
of which: | |||||||||||||||||||||||||||||
Equipment purchase | 163 | 163 | — | — | — | — | — | ||||||||||||||||||||||
Foundry purchase | 92 | 92 | — | — | — | — | — | ||||||||||||||||||||||
Software, design, technologies and licenses | 179 | 128 | 48 | 3 | — | — | — | ||||||||||||||||||||||
Other obligations | 481 | 155 | 120 | 100 | 80 | 24 | 2 | ||||||||||||||||||||||
Total | 1,157 | 592 | 205 | 132 | 106 | 46 | 76 | ||||||||||||||||||||||
As a consequence of the Company’s planned closures of certain of its manufacturing facilities, some of the contracts as reported above have been terminated. The termination fees for the sites still in operation have not been taken into account. | |||||||||||||||||||||||||||||
Operating leases are mainly related to building and equipment leases. The amount disclosed is composed of minimum payments for future leases from 2014 to 2018 and thereafter. The Company leases land, buildings, plants and equipment under operating leases that expire at various dates under non-cancellable lease agreements. Operating lease expense was $83 million for the year ended December 31, 2013, $114 million for the year ended December 31, 2012 and $135 million for the year ended December 31, 2011. | |||||||||||||||||||||||||||||
Purchase obligations are primarily comprised of purchase commitments for equipment, for outsourced foundry wafers and for software licenses. | |||||||||||||||||||||||||||||
Other obligations primarily relate to firm contractual commitments with respect to partnership and cooperation agreements. |
Contingencies_Claims_and_Legal
Contingencies, Claims and Legal Proceedings | 12 Months Ended | |
Dec. 31, 2013 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Contingencies, Claims and Legal Proceedings | ' | |
22 | CONTINGENCIES, CLAIMS AND LEGAL PROCEEDINGS | |
The Company is subject to possible loss contingencies arising in the ordinary course of business. These include but are not limited to: warranty cost on the products of the Company, breach of contract claims, claims for unauthorized use of third-party intellectual property, tax claims beyond assessed uncertain tax positions as well as claims for environmental damages. In determining loss contingencies, the Company considers the likelihood of impairing an asset or the incurrence of a liability at the date of the financial statements as well as the ability to reasonably estimate the amount of such loss. The Company records a provision for a loss contingency when information available before the financial statements are issued or are available to be issued indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and when the amount of loss can be reasonably estimated. The Company regularly re-evaluates claims to determine whether provisions need to be readjusted based on the most current information available to the Company. Changes in these evaluations could result in an adverse material impact on the Company’s results of operations, cash flows or its financial position for the period in which they occur. | ||
The Company has received and may in the future receive communications alleging possible infringements of third party patents or other third party intellectual property rights. Furthermore, the Company from time to time enters into discussions regarding a broad patent cross license arrangement with other industry participants. There is no assurance that such discussions may be brought to a successful conclusion and result in the intended agreement. The Company may become involved in costly litigation brought against the Company regarding patents, mask works, copyrights, trademarks or trade secrets. In the event that the outcome of any litigation would be unfavorable to the Company, the Company may be required to take a license to third party patents and/or other intellectual property rights at economically unfavorable terms and conditions, and possibly pay damages for prior use and/or face an injunction, all of which individually or in the aggregate could have a material adverse effect on the Company’s results of operations, cash flows, financial position and/or ability to compete. | ||
The Company is otherwise also involved in various lawsuits, claims, investigations and proceedings incidental to its business and operations. | ||
Litigation with Tessera | ||
In 2006, Tessera initiated a patent infringement lawsuit against the Company and numerous other semiconductor manufacturers in the U.S. District Court for the Northern District of California. Tessera claims that the Company’s ball grid array packages infringe certain patents owned by Tessera, and that the Company breached a 1997 license agreement by failing to pay royalties to Tessera on sales of products in certain ball grid array packages. Tessera then filed a complaint in 2007 with the U.S. International Trade Commission in Washington, D.C. (“ITC”) against the Company and numerous other parties. During the ITC proceedings, the District Court action was stayed. On May 20, 2009, the ITC issued a limited exclusion order as well as a cease and desist order, both of which were terminated when the Tessera patents expired in September 2010. The U.S. Court of Appeals for the Federal Circuit subsequently affirmed the ITC’s decision and on November 28, 2011 the U.S. Supreme Court denied the defendants’ petition for review, and the ITC decision became final. In January 2012, the District Court proceedings were revived in California. The District Court has appointed a special master to advise it on technical issues. Trial is scheduled for August 25, 2014. In May 2013, Tessera served its opening expert’s report on damages which opines that Tessera is entitled to $181 million in damages (including interest) based on the Company’s sales of allegedly infringing products from 2000 through 2010. The Company’s opening expert’s report on damages opines that the Company’s damages should be more in the range of $5 million to $8 million if an adverse judgment were to be entered against the Company. | ||
Litigation with Rambus | ||
On December 1, 2010, Rambus filed a complaint with the ITC against the Company and numerous other parties, asserting that the Company engaged in unfair trade practices by importing certain semiconductor chips that include memory controllers and/or certain peripheral interface technologies such as SerDes, PCI Express, SATA and SAS that allegedly infringe certain patents owned by Rambus. The complaint sought an exclusion order to bar importation into the United States of all accused semiconductor chips that infringe any claim of the asserted patents, as well as products of certain party customers incorporating the same. On July 25, 2012, the ITC elected to terminate the ITC investigation with a finding of no violation of section 337 of the Tariff Act of 1930. On September 25, 2012, Rambus filed a notice of appeal with the U.S. Court of Appeals for the Federal Circuit. Also on December 1, 2010, Rambus filed a lawsuit against the Company and other co-defendants in the U.S. District Court for the Northern District of California alleging infringement of nineteen Rambus patents. On June 17, 2013, the Company and Rambus announced a comprehensive settlement and license agreement pursuant to which all pending litigation between the parties was resolved. | ||
The resolution of litigation proceedings which the Company faces, including the matters referred to above, involve complex questions of fact and law. The results of legal proceedings are uncertain. Adverse determination in any of these types of disputes may have a material adverse impact on the Company’s financial results and operations. The Company currently estimates that possible losses for known claims are in the range of $30 million to $50 million. | ||
Other Contingencies | ||
The Company regularly evaluates claims and legal proceedings together with their related probable losses to determine whether they need to be adjusted based on the current information available to the Company. There can be no assurance that its recorded reserves will be sufficient to cover the extent of its potential liabilities. Legal costs associated with claims are expensed as incurred. In the event of litigation which is adversely determined with respect to the Company’s interests, or in the event the Company needs to change its evaluation of a potential third-party claim, based on new evidence or communications, a material adverse effect could impact its operations or financial condition at the time it were to materialize. As of December 31, 2013, provisions for estimated probable losses with respect to claims and legal proceedings were not considered material. |
Financial_Instruments_and_Risk
Financial Instruments and Risk Management | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Financial Instruments and Risk Management | ' | ||||||||||||||||||||||||
23 | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ||||||||||||||||||||||||
23.1 | Financial risk factors | ||||||||||||||||||||||||
The Company is exposed to changes in financial market conditions in the normal course of business due to its operations in different foreign currencies and its ongoing investing and financing activities. The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. | |||||||||||||||||||||||||
Risk management is carried out by a central treasury department (Corporate Treasury). Simultaneously, a Treasury Committee, chaired by the CFO, steers treasury activities and ensures compliance with corporate policies. Treasury activities are thus regulated by the Company’s policies, which define procedures, objectives and controls. The policies focus on the management of financial risk in terms of exposure to market risk, credit risk and liquidity risk. Treasury controls are subject to internal audits. Most treasury activities are centralized, with any local treasury activities subject to oversight from head treasury office. Corporate Treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, use of derivative financial instruments, and investments of excess liquidity. The majority of cash and cash equivalents is held in U.S. dollars and Euros and is placed with financial institutions rated at least a single “A” long-term rating from two of the major rating agencies, meaning at least A3 from Moody’s Investor Service and A- from Standard & Poor’s and Fitch Ratings, or better. These ratings are closely and continuously monitored in order to manage exposure to the counterparty’s risk. Hedging transactions are performed only to hedge exposures deriving from operating, investing and financing activities conducted in the normal course of business. | |||||||||||||||||||||||||
Market risk | |||||||||||||||||||||||||
Foreign exchange risk | |||||||||||||||||||||||||
The Company conducts its business on a global basis in various major international currencies. As a result, the Company is exposed to adverse movements in foreign currency exchange rates, primarily with respect to the Euro. Foreign exchange risk mainly arises from recognized assets and liabilities at the Company’s subsidiaries and future commercial transactions. | |||||||||||||||||||||||||
Management has set up a policy to require the Company’s subsidiaries to hedge their entire foreign exchange risk exposure with the Company through financial instruments transacted or overseen by Corporate Treasury. To manage their foreign exchange risk arising from foreign-currency-denominated assets and liabilities, subsidiaries use forward contracts and purchased currency options. Foreign exchange risk arises when recognized assets and liabilities are denominated in a currency that is not the entity’s functional currency. These instruments do not qualify as hedging instruments for accounting purposes. Forward contracts and currency options, including collars, are also used by the Company to reduce its exposure to U.S. dollar fluctuations in Euro-denominated forecasted intercompany transactions that cover a large part of its research and development, selling, general and administrative expenses as well as a portion of its front-end manufacturing costs of semi-finished goods. The Company also hedges through the use of currency forward contracts certain Singapore dollar-denominated manufacturing forecasted transactions. The derivative instruments used to hedge these forecasted transactions meet the criteria for designation as cash flow hedge. The hedged forecasted transactions have a high probability of occurring for hedge accounting purposes. | |||||||||||||||||||||||||
It is the Company’s policy to have the foreign exchange exposures in all the currencies hedged month by month against the monthly standard rate. At each month end, the forecasted flows for the coming month are hedged together with the fixing of the new standard rate. For this reason the hedging transactions will have an exchange rate very close to the standard rate at which the forecasted flows will be recorded on the following month. As such, the foreign exchange exposure of the Company, which consists in the balance sheet positions and other contractually agreed transactions, is always equivalent to zero and any movement in the foreign exchange rates will not therefore influence the exchange effect on items of the consolidated statement of income. Any discrepancy from the forecasted values and the actual results is constantly monitored and prompt actions are taken, if needed. | |||||||||||||||||||||||||
Derivative Instruments Not Designated as a Hedge | |||||||||||||||||||||||||
As described above, the Company enters into foreign currency forward contracts and currency options to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies in the Company’s subsidiaries. These include receivables from international sales by various subsidiaries, payables for foreign currency-denominated purchases and certain other assets and liabilities arising from intercompany transactions. | |||||||||||||||||||||||||
The notional amount of these financial instruments totaled $319 million, $817 million and $517 million at December 31, 2013, 2012 and 2011, respectively. The principal currencies covered are the Singapore dollar, the Swiss franc, the Indian rupee, the China Yuan Renminbi, the British pound and the Japanese yen. | |||||||||||||||||||||||||
The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The risk of loss associated with purchased currency options is equal to the premium paid when the option is not exercised. | |||||||||||||||||||||||||
Foreign currency forward contracts and currency options not designated as cash flow hedge outstanding as of December 31, 2013 have remaining terms of 6 days to 11 months, maturing on average after 40 days. | |||||||||||||||||||||||||
Derivative Instruments Designated as a Hedge | |||||||||||||||||||||||||
To further reduce its exposure to U.S. dollar exchange rate fluctuations, the Company hedges through the use of currency forward contracts and currency options, including collars, certain Euro-denominated forecasted intercompany transactions that cover at year-end a large part of its research and development, selling, general and administrative expenses, as well as a portion of its front-end manufacturing costs of semi-finished goods. The Company also hedges through the use of currency forward contracts certain manufacturing transactions denominated in Singapore dollars. | |||||||||||||||||||||||||
The principles regulating the hedging strategy for derivatives designated as cash flow hedge are established as follows: (i) for R&D and corporate costs, up to 80% of the total forecasted transactions; (ii) for manufacturing costs, up to 70% of the total forecasted transactions. In order to follow a dynamic hedge strategy, the Company may change the percentage of the designated hedged item within the limit of 100% of the forecasted transaction. The maximum length of time over which the Company could hedge its exposure to the variability of cash flows for forecasted transactions is 24 months. | |||||||||||||||||||||||||
For the year ended December 31, 2013, the Company recorded a decrease in cost of sales and operating expenses of $16 million and $17 million, respectively, related to the realized gain incurred on such hedged transactions. For the year ended December 31, 2012 the Company recorded an increase in cost of sales and operating expenses of $39 million and $32 million, respectively, related to the realized loss incurred on such hedged transactions. For the year ended December 31, 2011 the Company recorded a reduction in cost of sales and operating expenses of $65 million and $52 million, respectively, related to the realized gain incurred on such hedged transactions. No significant ineffective portion of the hedge was recorded on the line “Other income and expenses, net” of the consolidated statements of income for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
The notional amount of foreign currency forward contracts and currency options, including collars, designated as cash flow hedge totaled $1,702 million, $1,552 million and $1,759 million at December 31, 2013, 2012 and 2011, respectively. The forecasted transactions hedged at December 31, 2013 were determined to have a high probability of occurring. | |||||||||||||||||||||||||
As of December 31, 2013, $38 million of deferred gains on derivative instruments, before deferred tax of $5 million, included in “Accumulated other comprehensive income (loss)” were expected to be reclassified as earnings during the next 12 months based on the monthly forecasted research and development expenses, corporate costs and semi-finished manufacturing costs. No amount was reclassified as “Other income and expenses, net” into the consolidated statement of income from “Accumulated other comprehensive income (loss)” in the consolidated statement of equity. As of December 31, 2012, $29 million of deferred gains on derivative instruments, before deferred tax of $3 million, included in “Accumulated other comprehensive income (loss)” were expected to be reclassified as earnings during the next 12 months based on the monthly forecasted research and development expenses, corporate costs and semi-finished manufacturing costs. No amount was reclassified as “Other income and expenses, net” into the consolidated statement of income from “Accumulated other comprehensive income (loss)” in the consolidated statement of equity. Foreign currency forward contracts, currency options and collars designated as cash flow hedge outstanding as of December 31, 2013 have remaining terms of 2 days to 11 months, maturing on average after 107 days. | |||||||||||||||||||||||||
As at December 31, 2013, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated and Singapore dollar-denominated forecasted transactions: | |||||||||||||||||||||||||
In millions of Euros | Notional amount for hedge on forecasted R&D and other operating expenses | Notional amount for hedge on forecasted manufacturing costs | |||||||||||||||||||||||
Forward contracts | 187 | 207 | |||||||||||||||||||||||
Currency options | 49 | 105 | |||||||||||||||||||||||
Currency collars | 253 | 348 | |||||||||||||||||||||||
In millions of Singapore dollars | Notional amount for hedge on forecasted R&D and other operating expenses | Notional amount for hedge on forecasted manufacturing costs | |||||||||||||||||||||||
Forward contracts | — | 149 | |||||||||||||||||||||||
Cash flow and fair value interest rate risk | |||||||||||||||||||||||||
The Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. | |||||||||||||||||||||||||
The Company analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Since all the liquidity of the Company is invested in floating rate instruments, the Company’s interest rate risk arises from the mismatch of fixed rate liabilities and floating rate liquid assets. | |||||||||||||||||||||||||
Price risk | |||||||||||||||||||||||||
As part of its ongoing investing activities, the Company may be exposed to equity security price risk for investments in public entities. In order to hedge the exposure to this market risk, the Company may enter into certain derivative hedging transactions. | |||||||||||||||||||||||||
Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2013 and December 31, 2012 is presented in the table below: | |||||||||||||||||||||||||
In millions of U.S. dollars | As at December 31, 2013 | As at December 31, 2012 | |||||||||||||||||||||||
Asset Derivatives | Balance sheet | Fair value | Balance sheet | Fair value | |||||||||||||||||||||
location | location | ||||||||||||||||||||||||
Derivatives designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | 26 | Other current assets | 21 | |||||||||||||||||||||
Currency collars | Other current assets | 10 | Other current assets | 8 | |||||||||||||||||||||
Currency options | Other current assets | 5 | Other current assets | — | |||||||||||||||||||||
Total derivatives designated as a hedge | 41 | 29 | |||||||||||||||||||||||
Derivatives not designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | 2 | Other current assets | 7 | |||||||||||||||||||||
Total derivatives not designated as a hedge: | 2 | 7 | |||||||||||||||||||||||
Total Derivatives | 43 | 36 | |||||||||||||||||||||||
In millions of U.S. dollars | As at December 31, 2013 | As at December 31, 2012 | |||||||||||||||||||||||
Liability Derivatives | Balance sheet | Fair value | Balance sheet | Fair value | |||||||||||||||||||||
location | location | ||||||||||||||||||||||||
Derivatives designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other payables and accrued liabilities | (1 | ) | Other payables and accrued liabilities | — | ||||||||||||||||||||
Currency collars | Other payables and accrued liabilities | (2 | ) | ||||||||||||||||||||||
Total derivatives designated as a hedge | (3 | ) | — | ||||||||||||||||||||||
Derivatives not designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other payables and accrued liabilities | (1 | ) | Other payables and accrued liabilities | (1 | ) | |||||||||||||||||||
Total derivatives not designated as a hedge: | (1 | ) | (1 | ) | |||||||||||||||||||||
(4 | ) | ||||||||||||||||||||||||
Total Derivatives | (1 | ) | |||||||||||||||||||||||
The effect on the consolidated statements of income for the year ended December 31, 2013 and December 31, 2012 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the statements of equity as at December 31, 2013 and December 31, 2012 of derivative instruments designated as cash flow hedge is presented in the table below: | |||||||||||||||||||||||||
In millions of U.S. dollars | Gain (loss) deferred in | Location of gain (loss) | Gain (loss) reclassified from OCI into | ||||||||||||||||||||||
OCI on derivative | reclassified from OCI into | earnings | |||||||||||||||||||||||
earnings | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Foreign exchange forward contracts | 14 | 11 | Cost of sales | 13 | (25 | ) | |||||||||||||||||||
Foreign exchange forward contracts | 2 | 1 | Selling, general and administrative | 2 | (2 | ) | |||||||||||||||||||
Foreign exchange forward contracts | 10 | 9 | Research and development | 13 | (18 | ) | |||||||||||||||||||
Currency options | 1 | — | Cost of sales | — | (1 | ) | |||||||||||||||||||
Currency options | 1 | — | Research and development | — | (1 | ) | |||||||||||||||||||
Currency collars | 6 | 5 | Cost of sales | 3 | (13 | ) | |||||||||||||||||||
Currency collars | 1 | 1 | Selling, general and administrative | 1 | (3 | ) | |||||||||||||||||||
Currency collars | 3 | 2 | Research and development | 1 | (8 | ) | |||||||||||||||||||
Total | 38 | 29 | 33 | (71 | ) | ||||||||||||||||||||
No significant ineffective portion of the cash flow hedge relationships was recorded in earnings for the years ended December 31, 2013 and December 31, 2012. No amount was excluded from effectiveness measurement on foreign exchange forward contracts, currency options and collars. | |||||||||||||||||||||||||
The effect on the consolidated statements of income for the year ended December 31, 2013 and December 31, 2012 of derivative instruments not designated as a hedge is presented in the table below: | |||||||||||||||||||||||||
In millions of U.S. dollars | Location of gain recognized in earnings | Gain recognized in earnings | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Foreign exchange forward contracts | Other income and expenses, net | 10 | 20 | ||||||||||||||||||||||
Total | 10 | 20 | |||||||||||||||||||||||
The Company did not enter into any derivative containing significant credit-risk-related contingent features. | |||||||||||||||||||||||||
The Company entered into currency collars as combinations of two options, which are reported, for accounting purposes, on a net basis. The fair value of these collars represented as at December 31, 2013 assets totaling $10 million (a gross amount of recognized assets of $11 million offset with a liability of $1 million) and liabilities totaling $2 million (a gross amount of recognized liabilities of $2 million net of assets with a nil value). In addition, the Company entered into other derivative instruments, primarily forward contracts, which are governed by standard International Swaps and Derivatives Association (“ISDA”) agreements, which are not offset in the statement of financial position, and representing total assets of $33 million and liabilities of $2 million as at December 31, 2013. | |||||||||||||||||||||||||
Credit risk | |||||||||||||||||||||||||
The Company selects banks and/or financial institutions that operate with the group based on the criteria of long-term rating from at least two major Rating Agencies and keeping a maximum outstanding amount per instrument with each bank not to exceed 20% of the total. This percentage is reviewed and is always kept at a maximum of 15% for major counterparty banks with high capitalization. Due to the concentration of part of its operations in Europe, primarily in France and in Italy, the Company assessed in 2013, 2012 and 2011 the level of direct and indirect exposures in the Euro zone. The analysis focused on cash and cash equivalents, loans and receivables, deferred tax assets and other financial assets held in European countries experiencing economic, fiscal or political strains that increase the likelihood of default. To identify the countries at risk, the Company considered recent economic developments, such as credit downgrades, widening credit spreads and public deficit reduction plans and the impact such developments could have on the Company’s financial position, results of operations, liquidity, and capital resources. The assessment also aimed at identifying indirect exposures to the current economic environment in the Euro zone, such as concentrations of cash and financial instruments with financial institutions highly exposed to the sovereign debt crisis. The Company concluded that the situation in the Euro zone was in evolution but that no factors indicated a high level of credit risk exposure due to a sovereign default in the short term. | |||||||||||||||||||||||||
The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal and external ratings in accordance with limits set by management. The utilization of credit limits is regularly monitored. Sales to customers are primarily settled in cash. At December 31, 2013 and 2012, no customer represented more than 10% of trade accounts receivable, net. Any remaining concentrations of credit risk with respect to trade receivables are limited due to the large number of customers and their dispersion across many geographic areas. | |||||||||||||||||||||||||
Liquidity risk | |||||||||||||||||||||||||
Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents, short-term deposits and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. The Company’s objective is to maintain a significant cash position and a low debt-to-equity ratio, which ensure adequate financial flexibility. Liquidity management policy is to finance the Company’s investments with net cash provided from operating activities. | |||||||||||||||||||||||||
Management monitors rolling forecasts of the Company’s liquidity reserve on the basis of expected cash flows. | |||||||||||||||||||||||||
23.2 | Capital risk management | ||||||||||||||||||||||||
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to create value for shareholders and benefits and returns for other stakeholders, as to maintain an optimal capital structure. In order to maintain or adjust the capital structure, the Company may review the amount of dividends paid to shareholders, return capital to shareholders, or issue new shares. | |||||||||||||||||||||||||
Consistent with others in the industry, the Company monitors capital on the basis of the net debt-to-equity ratio. This ratio is calculated as the net financial position of the Company, defined as the difference between total cash position (cash and cash equivalents, marketable securities – current and non-current-, short-term deposits and current restricted cash, if any) net of total financial debt (bank overdrafts, if any, short-term borrowings and current portion of long-term debt as well as long-term debt), divided by total parent company stockholders’equity. | |||||||||||||||||||||||||
23.3 | Fair value measurement | ||||||||||||||||||||||||
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Company is the bid price. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using significant assumptions and estimates. When measuring fair value, the Company makes maximum use of market inputs and minimizes the use of unobservable inputs. | |||||||||||||||||||||||||
The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2013: | |||||||||||||||||||||||||
Fair Value Measurements using | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Description | December 31, | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
In millions of U.S. dollars | |||||||||||||||||||||||||
Euro-denominated Senior debt Floating Rate Notes issued by financial institutions | 27 | 27 | — | — | |||||||||||||||||||||
U.S.-denominated Senior debt Floating Rate Notes issued by financial institutions | 30 | 30 | — | — | |||||||||||||||||||||
Equity securities classified as available-for-sale | 11 | 11 | — | — | |||||||||||||||||||||
Equity securities classified as held-for-trading | 8 | 8 | — | — | |||||||||||||||||||||
Derivative instruments designated as cash flow hedge | 38 | — | 38 | — | |||||||||||||||||||||
Derivative instruments not designated as a hedge | 1 | — | 1 | — | |||||||||||||||||||||
Total | 115 | 76 | 39 | — | |||||||||||||||||||||
The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2012: | |||||||||||||||||||||||||
Fair Value Measurements using | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Description | December 31, | ||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
In millions of U.S. dollars | |||||||||||||||||||||||||
Debt securities issued by the U.S. Treasury | 150 | 150 | — | — | |||||||||||||||||||||
Euro-denominated Senior debt Floating Rate Notes issued by financial institutions | 59 | 59 | — | — | |||||||||||||||||||||
U.S.-denominated Senior debt Floating Rate Notes issued by financial institutions | 29 | 29 | — | — | |||||||||||||||||||||
Equity securities classified as available-for-sale | 10 | 10 | — | — | |||||||||||||||||||||
Equity securities classified as held-for-trading | 8 | 8 | — | — | |||||||||||||||||||||
Derivative instruments designated as cash flow hedge | 29 | — | 29 | — | |||||||||||||||||||||
Derivative instruments not designated as a hedge | 6 | — | 6 | — | |||||||||||||||||||||
Total | 291 | 256 | 35 | — | |||||||||||||||||||||
No asset was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as at December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||||
The table below details assets (liabilities) measured at fair value on a non-recurring basis as at December 31, 2013: | |||||||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||||||
In millions of U.S. dollars | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Description | December 31, | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Assets held for sale | 16 | — | — | 16 | |||||||||||||||||||||
Total | |||||||||||||||||||||||||
The assets held for sale are reported at the lower of net book value and fair value less costs to sell. For fair value measurements using significant unobservable inputs (Level 3), fair value is estimated based on the estimated price that a market participant would pay for equity investments or the indexation of historical costs (indirect cost approach) for property, plant and equipment. The latter approach relies on the principle of substitution according to which a market participant would not pay more for an asset than the cost to replace it with an identical or similar new unit of equivalent utility. Under this approach, the fair value of the asset is determined by adjusting the asset’s replacement costs for losses in value attributable to physical, functional and economic obsolescence. For certain tangible assets classified as assets held for sale, replacement costs were deduced by trending historical purchasing and manufacturing costs less soft costs. The price index multipliers applied for indexing replacement costs were estimated based on the historical development of producer price indices. | |||||||||||||||||||||||||
For assets (liabilities) measured at fair value on a non-recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2013 and December 31, 2013 is presented as follows: | |||||||||||||||||||||||||
In millions of U.S. dollars | Fair Value | ||||||||||||||||||||||||
Measurements | |||||||||||||||||||||||||
using Significant | |||||||||||||||||||||||||
Unobservable | |||||||||||||||||||||||||
Inputs (Level 3) | |||||||||||||||||||||||||
January 1, 2013 | — | ||||||||||||||||||||||||
Assets held for sale | 11 | ||||||||||||||||||||||||
Sale of assets | (5 | ) | |||||||||||||||||||||||
Deconsolidation of assets | (6 | ) | |||||||||||||||||||||||
Veredus asset group | 16 | ||||||||||||||||||||||||
December 31, 2013 | 16 | ||||||||||||||||||||||||
Amount of total losses for the period included in earnings attributable to assets still held at the reporting date | (5 | ) | |||||||||||||||||||||||
No significant portion of the aggregate carrying amount of cost-method investments was evaluated for impairment in 2013 and in 2012, since there were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of the related investments. | |||||||||||||||||||||||||
As described in Notes 7 and 8, the Company recorded a total impairment charge of $56 million on goodwill and intangible assets associated with the DCG reporting unit. The measurement of goodwill and intangible assets upon impairment testing is classified as a Level 3 fair value measurement due to the significance of unobservable inputs developed using entity-specific information. The Company used the income approach to measure the fair value of the reporting unit. Under the income approach, the fair value was determined based on the present value of the estimated future cash flows associated with the reporting unit. Cash flow projections were based on a plan for the DCG reporting unit that included best estimates about future developments and scenarios of the DCG business. The discount rate used was based on the weighted-average cost of capital adjusted for the relevant risk associated with the business-specific characteristics and the uncertainty related to the business’s cash flows. | |||||||||||||||||||||||||
Prior to conducting the impairment test on goodwill, the Company evaluated the recoverability of the long-lived assets assigned to the DCG reporting unit. The impairment on intangible assets totaled $18 million and was composed of $17 million on acquired technologies and $1 million on capitalized software. The Company used the income approach, which was based on cash flow projections expected to result from their use or potential sale. The discount rate used was based on the weighted-average cost of capital adjusted for the relevant risk associated with the assets. | |||||||||||||||||||||||||
The following table includes additional fair value information on financial assets and liabilities as at December 31, 2013 and 2012: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Description | Level | Carrying | Estimated Fair | Carrying | Estimated Fair | ||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||
In millions of U.S. dollars | |||||||||||||||||||||||||
Cash and cash equivalents | 1 | 1,836 | 1,836 | 2,250 | 2,250 | ||||||||||||||||||||
Long-term debt | 1,153 | 1,153 | 1,301 | 1,301 | |||||||||||||||||||||
- Bank loans (including current portion) | 2 | 1,153 | 1,153 | 839 | 839 | ||||||||||||||||||||
- Senior Bonds | 2 | — | — | 462 | 462 | ||||||||||||||||||||
No securities were in an unrealized loss position as at December 31, 2013. | |||||||||||||||||||||||||
The table below details securities that were in an unrealized loss position as at December 31, 2012. The securities are segregated by investment type and the length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2012. | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Less than 12 months | More than 12 months | Total | |||||||||||||||||||||||
Description | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Values | Losses | Values | Losses | Values | Losses | ||||||||||||||||||||
Senior debt floating rate notes | — | — | 88 | (1 | ) | 88 | (1 | ) | |||||||||||||||||
Total | — | — | 88 | (1 | ) | 88 | (1 | ) | |||||||||||||||||
The methodologies used to estimate fair value are as follows: | |||||||||||||||||||||||||
Debt securities classified as available-for-sale | |||||||||||||||||||||||||
The fair value of these debt securities is estimated based upon quoted market prices for identical instruments. | |||||||||||||||||||||||||
Foreign exchange forward contracts, currency options and collars | |||||||||||||||||||||||||
The fair value of these instruments is estimated based upon quoted market prices for similar instruments. | |||||||||||||||||||||||||
Equity securities classified as available-for-sale | |||||||||||||||||||||||||
The fair values of these instruments are estimated based upon market prices for the same or similar instruments. | |||||||||||||||||||||||||
Trading equity securities | |||||||||||||||||||||||||
The fair value of these instruments is estimated based upon quoted market prices for the same instruments. | |||||||||||||||||||||||||
Equity securities carried at cost | |||||||||||||||||||||||||
The non-recurring fair value measurement is based on the valuation of the underlying investments on a new round of third party financing or upon liquidation. | |||||||||||||||||||||||||
Long-term debt and current portion of long-term debt | |||||||||||||||||||||||||
The fair value of long-term debt was determined based on quoted market prices, and by estimating future cash flows on a borrowing-by-borrowing basis and discounting these future cash flows using the Company’s incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||||||
Cash and cash equivalents, accounts receivable, bank overdrafts, short-term borrowings, and accounts payable | |||||||||||||||||||||||||
The carrying amounts reflected in the consolidated financial statements are reasonable estimates of fair value due to the relatively short period of time between the origination of the instruments and their expected realization. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
24 | RELATED PARTY TRANSACTIONS | ||||||||||||
Transactions with significant shareholders, their affiliates and other related parties were as follows: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales & other services | 118 | 226 | 269 | ||||||||||
Research and development expenses | (121 | ) | (282 | ) | (235 | ) | |||||||
Other purchases | (71 | ) | (53 | ) | (60 | ) | |||||||
Accounts receivable | 12 | 53 | 54 | ||||||||||
Accounts payable | 82 | 62 | 42 | ||||||||||
For the years ended December 31, 2013, December 31, 2012 and 2011, the related party transactions were primarily with significant shareholders of the Company, or their subsidiaries and companies in which management of the Company perform similar policymaking functions. These include, but are not limited to: BESI, Cassa Depositi e Prestiti, Flextronics, MicroOLED, Soitec, Oracle and Technicolor. The related party transactions presented in the table above also include transactions between the Company and its equity-method investments as listed in Note 10. | |||||||||||||
Until the sale of its JVD shares to Ericsson on August 2, 2013, leading to the de-recognition of its equity investment in JVD, the Company purchased R&D services from JVD ($121 million in 2013). For the year ended December 31, 2012, the total R&D services purchased from ST-Ericsson AT SA amounted to $224 million and outstanding trade payables amounted to $44 million. | |||||||||||||
The Company made a contribution of $0.5 million for the year ended December 31, 2013 to the ST Foundation, a non-profit organization established to deliver and coordinate independent programs in line with its mission. The Company made no contribution to ST Foundation in the year ended December 31, 2012. Certain members of the Foundation’s Board are senior members of the Company’s management. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
25 | SEGMENT INFORMATION | ||||||||||||
The Company operates in two business areas: Semiconductors and Subsystems. | |||||||||||||
In the Semiconductors business area, the Company designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, application-specific integrated circuits (“ASICs”), full custom devices and semi-custom devices and application-specific standard products (“ASSPs”) for analog, digital, and mixed-signal applications. In addition, the Company further participates in the manufacturing value chain of Smartcard products, which includes the production and sale of both silicon chips and Smartcards. | |||||||||||||
In the Subsystems business area, the Company designs, develops, manufactures and markets subsystems and modules for the telecommunications, automotive and industrial markets including mobile phone accessories, battery chargers, ISDN power supplies and in-vehicle equipment for electronic toll payment. Based on its immateriality to its business as a whole, the Subsystems business area does not meet the requirements for a reportable segment as defined in the U.S. GAAP guidance. All the financial values related to Subsystems including net revenues and related costs, are reported in the segment “Others”. | |||||||||||||
Effective January 1, 2013, the segment reporting reflects the Company’s strategy announced on December 10, 2012. The strategy takes into account the evolution of the markets the Company is in and the environment seen in the years to come and is based on the Company’s leadership in two product segments, supported by a Sales & Marketing organization with a particular focus on the major accounts, as well as expanding the Company’s penetration of the mass market and focusing on five growth drivers: Automotive Products, Application Processors, including Digital Consumer Products, MEMS and Sensors, Microcontrollers and Smart Power. | |||||||||||||
The organization existing in 2013 was as follows: | |||||||||||||
• | Sense & Power and Automotive Products (SP&A), including: | ||||||||||||
• | Automotive (APG), | ||||||||||||
• | Industrial & Power Discrete (IPD), | ||||||||||||
• | Analog & MEMS (AMS), and | ||||||||||||
• | Other SP&A; | ||||||||||||
• | Embedded Processing Solutions (EPS), comprised of: | ||||||||||||
• | Digital Convergence Group (DCG), | ||||||||||||
• | Imaging, BI-CMOS ASIC and Silicon Photonics (IBP), | ||||||||||||
• | Microcontrollers, Memory & Security (MMS), | ||||||||||||
• | Wireless (WPS), and | ||||||||||||
• | Other EPS. | ||||||||||||
In 2013, the Company revised its results from prior periods in accordance with the new segment structure. The preparation of segment information based on the current segment structure requires management to make estimates and assumptions in determining the operating income (loss) of the segments for the prior reporting periods. The Company believes that the revised 2012 and 2011 presentation is consistent with that of 2013 and is using these comparatives when managing its segments. | |||||||||||||
The following tables present the Company’s consolidated net revenues and consolidated operating income (loss) by product segment. For the computation of the segments’ internal financial measurements, the Company uses certain internal rules of allocation for the costs not directly chargeable to the segments, including cost of sales, selling, general and administrative expenses and a significant part of research and development expenses. In compliance with the Company’s internal policies, certain cost items are not charged to the segments, including impairment, restructuring charges and other related closure costs, including ST-Ericsson plans, unused capacity charges, phase-out and start-up costs of certain manufacturing facilities, certain one-time corporate items such as the 2012 NXP arbitration award charge, strategic and special research and development programs or other corporate-sponsored initiatives, including certain corporate-level operating expenses and certain other miscellaneous charges. In addition, depreciation and amortization expense is part of the manufacturing costs allocated to the product segments and is neither identified as part of the inventory variation nor as part of the unused capacity charges; therefore, it cannot be isolated in the costs of goods sold. | |||||||||||||
Net revenues by product segment: | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
Sense & Power and Automotive Products (SP&A) | 4,775 | 4,622 | 5,120 | ||||||||||
Embedded Processing Solutions (EPS) | 3,269 | 3,826 | 4,566 | ||||||||||
Others(1) | 38 | 45 | 49 | ||||||||||
Total consolidated net revenues | 8,082 | 8,493 | 9,735 | ||||||||||
-1 | Includes revenues from sales of Subsystems, sales of materials and other products not allocated to product segments. | ||||||||||||
Net revenues by product segment and by product line : | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
In millions of U.S. dollars | |||||||||||||
Automotive (APG) | 1,668 | 1,554 | 1,678 | ||||||||||
Industrial & Power Discrete (IPD) | 1,801 | 1,747 | 2,104 | ||||||||||
Analog & MEMS (AMS) | 1,306 | 1,320 | 1,335 | ||||||||||
Other SP&A | — | 1 | 3 | ||||||||||
Sense & Power and Automotive Products (SP&A) | 4,775 | 4,622 | 5,120 | ||||||||||
Digital Convergence Group (DCG) | 735 | 888 | 1,084 | ||||||||||
Imaging, Bi-CMOS ASIC and Silicon Photonics (IBP) | 462 | 437 | 722 | ||||||||||
Microcontrollers, Memory & Security (MMS) | 1,367 | 1,147 | 1,175 | ||||||||||
Wireless (WPS) | 704 | 1,345 | 1,552 | ||||||||||
Other EPS | 1 | 9 | 33 | ||||||||||
Embedded Processing Solutions (EPS) | 3,269 | 3,826 | 4,566 | ||||||||||
Others | 38 | 45 | 49 | ||||||||||
Total consolidated net revenues | 8,082 | 8,493 | 9,735 | ||||||||||
Operating income (loss) by product segment: | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
Sense & Power and Automotive Products (SP&A) | 270 | 409 | 757 | ||||||||||
Embedded Processing Solutions (EPS) | (399 | ) | (883 | ) | (489 | ) | |||||||
Total operating income (loss) of product segments | (129 | ) | (474 | ) | 268 | ||||||||
Others (1) | (336 | ) | (1,607 | ) | (222 | ) | |||||||
Total consolidated operating income (loss) | (465 | ) | (2,081 | ) | 46 | ||||||||
-1 | Operating loss of “Others” includes items such as impairment, restructuring charges and other related closure costs including ST-Ericsson plans, unused capacity charges, phase-out and start-up costs of certain manufacturing facilities, certain one-time corporate items such as the 2012 NXP arbitration award charge and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses and other costs that are not allocated to the product segments, as well as operating earnings of the Subsystems and Other Products Group. | ||||||||||||
Reconciliation of operating income (loss) of segments to the total operating income (loss): | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
Total operating income (loss) of product segments | (129 | ) | (474 | ) | 268 | ||||||||
Strategic and other research and development programs | (15 | ) | (12 | ) | (13 | ) | |||||||
Phase-out and start-up costs | (5 | ) | — | (8 | ) | ||||||||
Impairment, restructuring charges and other related closure costs | (292 | ) | (1,376 | ) | (75 | ) | |||||||
Unused capacity charges | (32 | ) | (172 | ) | (149 | ) | |||||||
NXP arbitration award | — | (54 | ) | — | |||||||||
Other non-allocated provisions(1) | 8 | 7 | 23 | ||||||||||
Total operating loss Others | (336 | ) | (1,607 | ) | (222 | ) | |||||||
Total consolidated operating income (loss) | (465 | ) | (2,081 | ) | 46 | ||||||||
-1 | Includes unallocated income and expenses such as certain corporate-level operating expenses and other costs/income that are not allocated to the product segments. | ||||||||||||
The following is a summary of operations by entities located within the indicated geographic areas for 2013, 2012 and 2011. Net revenues represent sales to third parties from the country in which each entity is located. Long-lived assets consist of property, plant and equipment, net (PP&E, net). A significant portion of property, plant and equipment expenditures is attributable to front-end and back-end facilities, located in the different countries in which the Company operates. As such, the Company mainly allocates capital spending resources according to geographic areas rather than along product segment areas. | |||||||||||||
Net revenues | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
The Netherlands | 1,860 | 1,524 | 1,928 | ||||||||||
France | 289 | 189 | 172 | ||||||||||
Italy | 78 | 131 | 157 | ||||||||||
USA | 1,041 | 1,014 | 1,120 | ||||||||||
Singapore | 3,860 | 3,784 | 4,945 | ||||||||||
Japan | 420 | 418 | 497 | ||||||||||
Other countries | 534 | 1,433 | 916 | ||||||||||
Total | 8,082 | 8,493 | 9,735 | ||||||||||
Property, plant and equipment | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
The Netherlands | 333 | 241 | |||||||||||
France | 1,063 | 1,222 | |||||||||||
Italy | 690 | 716 | |||||||||||
Other European countries | 131 | 169 | |||||||||||
USA | 17 | 18 | |||||||||||
Singapore | 341 | 441 | |||||||||||
Malaysia | 195 | 238 | |||||||||||
Other countries | 386 | 436 | |||||||||||
Total | 3,156 | 3,481 | |||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
STMICROELECTRONICS N.V. | |||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
Valuation and qualifying accounts deducted | Balance at | Translation | Charged to | Additions/ | Balance | ||||||||||||||||
from the related asset accounts | beginning | adjustment | costs and | (Deductions) | at end of | ||||||||||||||||
of period | expenses | period | |||||||||||||||||||
(Currency — millions of U.S. dollars) | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Inventories | 49 | 58 | (69 | ) | 38 | ||||||||||||||||
Accounts Receivable | 10 | 0 | 2 | (3 | ) | 9 | |||||||||||||||
Deferred Tax Assets | 1,634 | 7 | 67 | (254 | ) | 1,454 | |||||||||||||||
2012 | |||||||||||||||||||||
Inventories | 60 | 95 | (106 | ) | 49 | ||||||||||||||||
Accounts Receivable | 15 | 1 | (6 | ) | 10 | ||||||||||||||||
Deferred Tax Assets | 1,514 | 6 | 123 | (9 | ) | 1,634 | |||||||||||||||
2011 | |||||||||||||||||||||
Inventories | 50 | 103 | (93 | ) | 60 | ||||||||||||||||
Accounts Receivable | 17 | 1 | (3 | ) | 15 | ||||||||||||||||
Deferred Tax Assets | 1,396 | (11 | ) | 138 | (9 | ) | 1,514 |
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Principles of consolidation | ' | ||||||||||||
2.1 – Principles of consolidation | |||||||||||||
The Company’s consolidated financial statements include the assets, liabilities, results of operations and cash flows of its majority-owned subsidiaries. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Intercompany balances and transactions have been eliminated in consolidation. In compliance with U.S. GAAP, the Company assesses for consolidation any entity identified as a Variable Interest Entity (“VIE”) and consolidates any VIEs, for which the Company is determined to be the primary beneficiary, as described in Note 2.9. | |||||||||||||
When the Company owns some, but not all, of the voting stock of a consolidated entity, the shares held by third parties represent a noncontrolling interest. The consolidated financial statements are prepared based on the total amount of assets and liabilities and income and expenses of the consolidated subsidiaries. However, the portion of these items that does not belong to the Company is reported on the line “Noncontrolling interest” in the consolidated financial statements. | |||||||||||||
Use of estimates | ' | ||||||||||||
2.2 – Use of estimates | |||||||||||||
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. The primary areas that require significant estimates and judgments by management include, but are not limited to: | |||||||||||||
• | sales returns and allowances, | ||||||||||||
• | determination of the best estimate of the selling price for deliverables in multiple element sale arrangements, | ||||||||||||
• | inventory obsolescence reserves and normal manufacturing capacity thresholds to determine costs capitalized in inventory, | ||||||||||||
• | provisions for litigation and claims and recognition and measurement of loss contingencies, | ||||||||||||
• | valuation at fair value of assets acquired or sold, including intangibles, goodwill, investments and tangible assets, | ||||||||||||
• | annual and trigger-based impairment review of goodwill and intangible assets, as well as an assessment, in each reporting period, of events, which could trigger interim impairment testing on long-lived assets, | ||||||||||||
• | estimated value of the consideration to be received and used as fair value for asset groups classified as assets held for sale and the assessment of probability of realizing the sale, | ||||||||||||
• | assessment of other-than-temporary impairment charges on financial assets, including equity-method investments, | ||||||||||||
• | restructuring charges and other related exit costs, | ||||||||||||
• | assumptions used in assessing the number of awards expected to vest on stock-based compensation plans, | ||||||||||||
• | assumptions used in calculating pension obligations, and | ||||||||||||
• | determination of the amount of taxes expected to be paid and tax benefit expected to be received, including deferred income tax assets, valuation allowance and provisions for uncertain tax positions and claims. | ||||||||||||
The Company bases the estimates and assumptions on historical experience and on various other factors such as market trends, market information used by market participants and the latest available business plans that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. While the Company regularly evaluates its estimates and assumptions, the actual results experienced by the Company could differ materially and adversely from those estimates. To the extent there are material differences between the estimates and the actual results, future results of operations, cash flows and financial position could be significantly affected. | |||||||||||||
Foreign currency | ' | ||||||||||||
2.3 – Foreign currency | |||||||||||||
The U.S. dollar is the reporting currency of the Company. The U.S. dollar is the currency of the primary economic environment in which the Company operates since the worldwide semiconductor industry uses the U.S. dollar as a currency of reference for actual pricing in the market. Furthermore, the majority of the Company’s transactions are denominated in U.S. dollars, and revenues from external sales in U.S. dollars largely exceed revenues in any other currency. However, labor costs are concentrated primarily in the countries of the Euro zone. | |||||||||||||
The functional currency of each subsidiary of the Company is either the local currency or the U.S. dollar, depending on the basis of the economic environment in which each subsidiary operates. Foreign currency transactions, including operations in local currency when the U.S. dollar is the functional currency, are measured into the functional currency using the period average exchange rate. Foreign exchange gains and losses resulting from the translation at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statements of income on the line “Other income and expenses, net”. | |||||||||||||
For consolidation purposes, the results and financial position of the subsidiaries whose functional currency is different from the U.S. dollar are translated into the reporting currency as follows: | |||||||||||||
(a) | assets and liabilities for each consolidated balance sheet presented are translated at the closing exchange rate as of the balance sheet date; | ||||||||||||
(b) | income and expenses for each consolidated statement of income presented are translated at the monthly average exchange rate; | ||||||||||||
(c) | the resulting exchange differences are reported as Currency Translation Adjustments (“CTA”), a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income. | ||||||||||||
Cash and cash equivalents | ' | ||||||||||||
2.4 – Cash and cash equivalents | |||||||||||||
Cash and cash equivalents includes cash on hand, deposits held at call with external financial institutions and other short-term highly liquid investments with original maturities of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Bank overdrafts are not netted against cash and cash equivalents and are shown as part of current liabilities on the consolidated balance sheets. | |||||||||||||
Trade accounts receivable | ' | ||||||||||||
2.5 – Trade accounts receivable | |||||||||||||
Trade accounts receivable are amounts due from customers for goods sold and services rendered to third parties in the ordinary course of business. They are recognized at their billing value, net of allowances for doubtful accounts. The Company maintains an allowance for doubtful accounts for potential estimated losses resulting from its customers’ inability to make required payments. The Company bases its estimates on historical collection trends and records an allowance accordingly. Additionally, the Company evaluates its customers’ financial condition periodically and records an allowance for any specific account it considers as doubtful. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the charge is recognized on the line “Selling, general and administrative” in the consolidated statements of income. Subsequent recoveries, if any, of amounts previously provided for are credited against the same line in the consolidated statements of income. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivable. | |||||||||||||
In the event of sales of receivables such as factoring, the Company derecognizes the receivables and accounts for them as a sale only to the extent that the Company has surrendered control over the receivables in exchange for a consideration other than beneficial interest in the transferred receivables. | |||||||||||||
Inventories | ' | ||||||||||||
2.6 – Inventories | |||||||||||||
Inventories are stated at the lower of cost or market value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the excess capacity are not included in the valuation of inventories but charged directly to cost of sales. Market value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses and cost of completion. | |||||||||||||
The Company performs, on a continuous basis, inventory write-offs of products, which have the characteristics of slow-moving, old production date and technical obsolescence. Indeed, the Company evaluates its product inventory to identify obsolete or slow-selling stock and records a specific reserve if the Company estimates the inventory will eventually become obsolete. Reserve for obsolescence is estimated for excess uncommitted inventory based on the previous quarter sales, order backlog and production plans. | |||||||||||||
Current and deferred income tax | ' | ||||||||||||
2.7 – Current and deferred income tax | |||||||||||||
Income tax for the period comprises current and deferred income tax. Current income tax represents the income tax expected to be paid or the tax benefit expected to be received related to the current year taxable profit and loss in each individual tax jurisdiction. Deferred income tax is recognized, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the consolidated financial statements. However deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit and loss. Deferred income tax is determined using tax rates and laws that are enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect on deferred tax assets and liabilities from changes in tax laws and tax rates is recognized in earnings in the period in which the law is enacted. Deferred income tax assets are recognized in full, but the Company assesses whether future taxable profit will be available against which temporary differences can be utilized. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, is presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, in application of the new guidance relating to the presentation in the financial statements of unrecognized tax benefits when these types of tax credits or carryforward exist, as described in Note 2.24. A valuation allowance is provided for deferred tax assets when management considers it is more likely than not that they will not be realized. | |||||||||||||
The Company recognizes a deferred tax liability on undistributed earnings of subsidiaries when there is a presumption that the earnings will be remitted to the parent. This presumption is overcome only if the Company can demonstrate that the earnings will be permanently reinvested. A deferred tax asset is recognized on compensation for the grant of stock awards to the extent that such charge constitutes a temporary difference in the subsidiaries’ local tax jurisdictions. Changes in the stock price do not impact the deferred tax asset and do not result in any adjustments prior to vesting. When the actual tax deduction is determined, generally upon vesting, it is compared to the deferred tax asset as recognized over the vesting period. When a windfall tax benefit is determined (as the excess tax benefit of the actual tax deduction over the deferred tax asset) the excess tax benefit is recorded in equity on the line “Capital surplus” on the consolidated statements of equity. In case of shortfall, only the actual tax benefit is to be recognized in the consolidated financial statements. The Company writes off the deferred tax asset at the level of the actual tax deduction by charging first capital surplus to the extent of the pool of windfall benefits available from prior years, and then earnings. When the settlement of an award results in a net operating loss (“NOL”) carryforward, or increase of existing NOLs, the excess tax benefit and the corresponding credit to capital surplus is not recorded until the deduction reduces income tax payable. | |||||||||||||
At each reporting date, the Company assesses all material open income tax positions in all tax jurisdictions to determine any uncertain tax positions. The Company uses a two-step process for the evaluation of uncertain tax positions. The first step consists of determining whether a benefit may be recognized; the assessment is based on a more-likely-than-not recognition threshold. If the sustainability is lower than 50%, a full provision should be accounted for. In case of a sustainability threshold in step one higher than 50%, the Company must perform a second step in order to measure the amount of recognizable tax benefit, net of any liability for tax uncertainties. The measurement methodology in step two is based on a “cumulative probability” approach, resulting in the recognition of the largest amount that is greater than 50% likely of being realized upon settlement with the taxing authority. As described in Note 2.24, the unrecognized tax benefit is recorded as a reduction of a deferred tax asset to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of the tax position. The Company accrues for interest and penalties on uncertain tax liabilities reported on the consolidated balance sheets. Interests and penalties are classified as components of income tax expense in its consolidated statements of income. | |||||||||||||
Assets held for sale | ' | ||||||||||||
2.8 – Assets held for sale | |||||||||||||
Assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. The assets are classified as assets held for sale when the following conditions have been met: management has approved the plan to sell; assets are available for immediate sale; assets are actively being marketed; sale is probable within one year; price is reasonable in the market and it is unlikely that there will be significant changes in the assets to be sold or a withdrawal to the plan to sell. Assets classified as held for sale are reported as current assets at the lower of their carrying amount and fair value less costs to sell. Costs to sell include incremental direct costs to transact the sale that would not have been incurred except for the decision to sell. Depreciation is not charged on long-lived assets classified as held for sale. When the held-for-sale accounting treatment requires an impairment charge for the difference between the carrying amount and fair value, such impairment is reflected on the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs”. If the long-lived assets no longer meet the held-for-sale model, they are reported as assets held and used and thus reclassified from current assets to the line “Property, plant and equipment, net” in the consolidated balance sheets. The assets are measured at the lower of their fair value at the date of the subsequent decision not to sell and their carrying amount prior to their classification as assets held for sale, adjusted for any depreciation that would have been recognized if the long-lived assets had not been classified as assets held for sale. | |||||||||||||
Business combinations and goodwill | ' | ||||||||||||
2.9 – Business combinations and goodwill | |||||||||||||
The Company assesses each investment in equity securities to determine whether the investee is a Variable Interest Entity (“VIE”). The Company consolidates the VIEs for which the Company is determined to be the primary beneficiary. The primary beneficiary of a VIE is the party that: (i) has the power to direct the most significant activities of the VIE and (ii) is obligated to absorb losses or has the rights to receive returns that would be considered significant to the VIE. Assets, liabilities, and the noncontrolling interest of newly consolidated VIEs are initially measured at fair value in the same manner as if the consolidation resulted from a business combination. | |||||||||||||
The purchase accounting method is applied to all business combinations. The identifiable assets acquired, equity instruments issued, and liabilities assumed are measured at fair value on the acquisition date. Any contingent purchase price and acquired contingencies are recorded at fair value on the acquisition date. Acquisition-related transaction costs and restructuring costs relating to the acquired business are expensed as incurred. Acquired in-process research and development (“IPR&D”) is capitalized and recorded as an intangible asset on the acquisition date, subject to impairment testing until the research or development is completed or abandoned. The excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed is recorded as goodwill. In case of a bargain purchase, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed; the noncontrolling interest in the acquiree, if any; the Company’s previously held equity interest in the acquiree, if any; and the consideration transferred. If after this review, a bargain purchase is still indicated, it is recognized in earnings attributed to the Company. The purchase of additional interests in a partially owned subsidiary is treated as an equity transaction as well as all transactions concerning the sale of subsidiary stock or the issuance of stock by the partially owned subsidiary as long as there is no change in control of the subsidiary. If as a consequence of selling subsidiary shares, the Company no longer controls the subsidiary, the Company recognizes a gain or loss in earnings. | |||||||||||||
Goodwill represents the excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized but is tested annually for impairment, or more frequently if indicators of impairment exist. Goodwill subject to potential impairment is tested at a reporting unit level, after performing a “qualitative” assessment to determine whether impairment testing is necessary, in cases where the Company has elected to apply such option. The impairment test determines whether the fair value of each reporting unit for which goodwill is allocated is lower than the total carrying amount of relevant net assets allocated to such reporting unit, including its allocated goodwill. If lower, the implied fair value of the reporting unit goodwill is then compared to the carrying value of the goodwill and an impairment charge is recognized for any excess. In determining the fair value of a reporting unit, the Company uses a market approach with financial metrics of comparable public companies and estimates the expected discounted future cash flows associated with the reporting unit. Significant management judgments and estimates are used in forecasting the future discounted cash flows, including: the applicable industry’s sales volume forecast and selling price evolution, the reporting unit’s market penetration and its revenues evolution, the market acceptance of certain new technologies and products, the relevant cost structure, the discount rates applied using a weighted average cost of capital and the perpetuity rates used in calculating cash flow terminal values. | |||||||||||||
Intangible assets with finite useful lives | ' | ||||||||||||
2.10 – Intangible assets with finite useful lives | |||||||||||||
Intangible assets subject to amortization include the intangible assets purchased from third parties recorded at cost and intangible assets acquired in business combinations recorded at fair value, which include trademarks, technologies and licenses, contractual customer relationships and computer software. Amortization begins when the intangible asset is available for use and is calculated using the straight-line method to allocate the cost of the intangible assets over the estimated useful lives. | |||||||||||||
Trademarks, technologies and licenses | |||||||||||||
Separately acquired trademarks and licenses are recorded at historical cost. Trademarks and licenses acquired in a business combination are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life which ranges from 3 to 7 years and are carried at cost less accumulated amortization and impairment losses, if any. | |||||||||||||
Computer software | |||||||||||||
Separately acquired computer software is recorded at historical cost. Costs associated with maintaining computer software programs are expensed in the consolidated statements of income as incurred. The capitalization of costs for internally generated software developed by the Company for its internal use begins when the preliminary project stage is completed and when the Company, implicitly or explicitly, authorizes and commits to funding a computer software project. It must be probable that the project will be completed and will be used to perform the function intended. Amortization on computer software begins when the software is available for use and is calculated using the straight-line method over the estimated useful life, which does not exceed 4 years. | |||||||||||||
The carrying value of intangible assets with finite useful lives is evaluated whenever changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in the consolidated statements of income for the amount by which the asset’s carrying amount exceeds its fair value. The Company evaluates the remaining useful life of an intangible asset at each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. | |||||||||||||
Property, plant and equipment | ' | ||||||||||||
2.11 – Property, plant and equipment | |||||||||||||
Property, plant and equipment are stated at historical cost, net of capital investment funding, accumulated depreciation and any impairment losses. Property, plant and equipment acquired in a business combination are recognized at fair value at the acquisition date. Major additions and improvements are capitalized, minor replacements and repairs are charged to current operations. | |||||||||||||
Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: | |||||||||||||
Buildings | 33 years | ||||||||||||
Facilities and leasehold improvements | 5-10 years | ||||||||||||
Machinery and equipment | 3-10 years | ||||||||||||
Computer and R&D equipment | 3-6 years | ||||||||||||
Other | 2-5 years | ||||||||||||
The Company evaluates each period whether there is reason to suspect that tangible assets or groups of assets held and used might not be recoverable. Several impairment indicators exist for making this assessment, such as: restructuring plans, significant changes in the technology, market, economic or legal environment in which the Company operates or in the market to which the asset is dedicated, or available evidence of obsolescence of the asset, or indication that its economic performance is, or will be, worse than expected. In determining the recoverability of assets to be held and used, the Company initially assesses whether the carrying value of the tangible assets or group of assets exceeds the undiscounted cash flows associated with these assets. If exceeded, the Company then evaluates whether an impairment charge is required by determining if the asset’s carrying value also exceeds its fair value. This fair value is normally estimated by the Company based on independent market appraisals or the sum of discounted future cash flows, using market assumptions such as the utilization of the Company’s fabrication facilities and the ability to upgrade such facilities, change in the selling price and the adoption of new technologies. The Company also evaluates, and adjusts if appropriate, the assets’ useful lives, at each balance sheet date or when impairment indicators exist. | |||||||||||||
When property, plant and equipment are retired or otherwise disposed of, the net book value of the assets is removed from the Company’s books. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in “Other income and expenses, net” in the consolidated statements of income. | |||||||||||||
Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. Assets leased under capital leases are included in “Property, plant and equipment, net” and recorded at inception at the lower of their fair value and the present value of the minimum lease payments. They are depreciated over the shorter of the estimated useful life and the lease term unless there is a reasonable certainty that ownership will be obtained by the end of the lease term. The financial liability corresponding to the contractual obligation to proceed to future lease payments is included in long-term debt, as described in Note 2.14. Lease arrangements classified as operating leases are arrangements in which the lessor retains a significant portion of the risks and rewards of ownership of the leased assets. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease period. | |||||||||||||
Investments | ' | ||||||||||||
2.12 – Investments | |||||||||||||
The Company assesses each investment to determine whether the investee is a Variable Interest Entity (“VIE”). The Company consolidates the VIEs for which the Company is determined to be the primary beneficiary, as described in Note 2.9. | |||||||||||||
Investments in public companies that have readily determinable fair values and for which the Company does not have the ability to exercise significant influence are classified as trading or available-for-sale equity securities, as described in Note 2.22. Investments in equity securities without readily determinable fair values and for which the Company does not have the ability to exercise significant influence are accounted for under the cost-method. Under the cost-method of accounting, investments are carried at historical cost and are adjusted only for declines in value. The fair value of a cost-method investment is estimated on a non-recurring basis when there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. An impairment loss is immediately recorded in the consolidated statements of income when it is assessed to be other-than-temporary and is based on the Company’s assessment of any significant and sustained reductions in the investment’s fair value. For unquoted equity securities, assumptions and estimates used in measuring fair value include the use of recent arm’s length transactions when they reflect the orderly exit price of the investments. Gains and losses on investments sold are determined on the specific identification method and are recorded as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. | |||||||||||||
Equity-method investments are all entities over which the Company has the ability to exercise significant influence but not control, generally representing a shareholding of between 20% and 50% of the voting rights. These investments are valued under the equity-method and are initially recognized at cost. Goodwill on equity-method investments is included in the carrying value of the investment and is not individually tested for impairment. Equity-method investments also include entities which the Company determines to be VIEs, as described in Note 2.9, if the Company has the ability to exercise significant influence over the entity’s operations even if the Company owns less than 20% and is not the primary beneficiary. The Company’s share in the result of operations of equity-method investments is recognized in the consolidated statements of income on the line “Income (loss) on equity-method investments” and in the consolidated balance sheets as an adjustment to the carrying amount of the investments. Where there has been a change recognized directly in the equity of the investee, the Company recognizes its share in the adjustment, when applicable, directly in the consolidated statement of equity. The financial statements of the equity-method investments are prepared for the same reporting period as the Company or with a time lag not exceeding three months if the investee cannot issue financial statements within the closing timeframe requirements of the Company. At each period-end, the Company assesses whether there is objective evidence that its interests in equity-method investments are impaired. Once a determination is made that an other-than-temporary impairment exists, the Company writes down the carrying value of the equity-method investment to its fair value at the balance sheet date, which establishes a new cost basis. The fair value of an equity-method investment is measured on a non-recurring basis using primarily a combination of an income approach, based on discounted cash flows, and a market approach with financial metrics of comparable public companies. | |||||||||||||
Provisions | ' | ||||||||||||
2.13 – Provisions | |||||||||||||
In determining loss contingencies, the Company considers the likelihood of a loss of an asset or the incurrence of a liability as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss from a loss contingency is accrued by a charge to income when information available indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and when the amount of the loss can be reasonably estimated. | |||||||||||||
Long-term debt | ' | ||||||||||||
2.14 – Long-term debt | |||||||||||||
Bank loans and non-convertible senior bonds, are recognized at historical cost, net of transaction costs incurred. They are subsequently reported at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statements of income over the period of the borrowings using the effective interest rate method. | |||||||||||||
As described in Note 2.11, lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. The Company reports the leased assets on the line “Property, plant and equipment, net” and recognizes a financial liability corresponding to the contractual obligation to proceed to future lease payments, which is included in long-term debt. Each lease payment is allocated between the debt repayment and interest expense. | |||||||||||||
Short-term debt is classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. | |||||||||||||
Employee benefits | ' | ||||||||||||
2.15 – Employee benefits | |||||||||||||
(a) Pension obligations | |||||||||||||
The Company sponsors various pension schemes for its employees. These schemes conform to local regulations and practices in the countries in which the Company operates. Such plans include both defined benefit and defined contribution plans. For defined benefit pension plans, the liability recognized in the consolidated balance sheets is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The overfunded or underfunded status of the defined benefit plans are calculated as the difference between plan assets and the projected benefit obligations. Significant estimates are used in determining the assumptions incorporated in the calculation of the pension obligations, which is supported by input from independent actuaries. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to income over the employees’ expected average remaining working lives. Past service costs are recognized immediately in earnings, unless the changes to the pension scheme are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are amortized on a straight-line basis over the vesting period. The net periodic benefit cost of the year is determined based on the assumptions used at the end of the previous year. | |||||||||||||
For defined contribution pension plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. | |||||||||||||
(b) Other post-employment obligations | |||||||||||||
The Company provides post-employment benefits to some of its retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and to the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to income over the expected average remaining working lives of the related employees. | |||||||||||||
(c) Termination benefits | |||||||||||||
Termination benefits are payable when an employee is involuntarily terminated, or whenever an employee accepts voluntary termination in exchange for termination benefits. For the accounting treatment and timing recognition of involuntarily termination benefits, the Company distinguishes between one-time termination benefit arrangements and ongoing termination benefit arrangements. A one-time termination benefit arrangement is established by a termination plan and applies to a specified termination event. One-time involuntary termination benefits are recognized as a liability when the termination plan meets certain criteria and has been communicated to employees. If employees are required to render future service in order to receive these one-time termination benefits, the liability is recognized ratably over the future service period. Termination benefits other than one-time termination benefits are termination benefits for which the communication criterion is not met but that are committed to by management, or termination obligations that are not specifically determined in a new and single plan. These termination benefits are all legal, contractual and past practice termination obligations to be paid to employees in case of involuntary termination. These termination benefits are accrued for when commitment creates a present obligation to others for the benefits expected to be paid, when it is probable that employees will be entitled to the benefits and the amount can be reasonably estimated. | |||||||||||||
In case of special termination benefits related to voluntary redundancy programs, the Company recognizes a provision for voluntary termination benefits at the date on which the employee irrevocably accepts the offer and the amount can be reasonably estimated. | |||||||||||||
(d) Profit-sharing and bonus plans | |||||||||||||
The Company recognizes a liability and an expense for bonuses and profit-sharing plans when it is contractually obliged or where there is a past practice that has created a present obligation. | |||||||||||||
(e) Other long-term employee benefits | |||||||||||||
The Company provides long-term employee benefits such as seniority awards in certain countries. The entitlement to these benefits is usually conditional on the employee completing a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to earnings in the period of change. These obligations are valued annually with the assistance of independent qualified actuaries. | |||||||||||||
(f) Share-based compensation | |||||||||||||
The Company grants unvested stock awards to senior executives and selected employees for free. Until 2012, the members and professionals of the Supervisory Board received share options with an exercise price equal to the par value of the shares (Euro 1.04). The awards granted to employees vest upon completion of an average three-year service period. For certain employees, awards contingently vest upon achieving three performance conditions. The awards granted to the Supervisory Board vested unconditionally along the same vesting period as employees but were not forfeited even if the service period was not completed. The Company measures the cost of the awards based on the grant-date fair value of the shares. That cost is recognized over the period during which an employee is required to provide service in exchange for the award or the requisite service period, usually the vesting period. Compensation is recognized only for the awards that ultimately vest. The compensation cost is recorded through earnings against equity, under “Capital surplus” in the consolidated statements of equity. The compensation cost is calculated based on the number of awards expected to vest, which includes assumptions on the number of awards to be forfeited due to the employees’ failing to fulfill the service condition, and forfeitures following the non-completion of one or more performance conditions. | |||||||||||||
Liabilities for the Company’s portion of payroll taxes are recognized at vesting, which is the event triggering the payment of the social contributions in most of the Company’s local tax jurisdictions. Employee-related social charges are measured based on the intrinsic value of the share at vesting date. | |||||||||||||
Share capital | ' | ||||||||||||
2.16 – Share capital | |||||||||||||
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. | |||||||||||||
Where the Company purchases its equity share capital (treasury stock), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company’s shareholders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received net of directly attributable incremental transaction costs and the related income tax effect is included in equity. | |||||||||||||
Comprehensive income (loss) | ' | ||||||||||||
2.17 – Comprehensive income (loss) | |||||||||||||
Comprehensive income (loss) is defined as the change in equity of a business during a period except those changes resulting from investment by stockholders and distributions to stockholders. In the accompanying consolidated financial statements, “Other comprehensive income (loss)” and “Accumulated other comprehensive income” primarily consists of temporary unrealized gains (losses) on securities classified as available-for-sale, unrealized gains (losses) on derivatives designated as cash flow hedge and the impact of recognizing the funded status of defined benefit plans, as well as foreign currency translation adjustments, net of tax. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
2.18 – Revenue Recognition | |||||||||||||
Revenue is recognized as follows: | |||||||||||||
Net sales | |||||||||||||
Revenue from products sold to customers is recognized when all the following conditions have been met: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred; (c) the selling price is fixed or determinable; and (d) collection is reasonably assured. This usually occurs at the time of shipment. | |||||||||||||
Consistent with standard business practice in the semiconductor industry, price protection is granted to distribution customers on their existing inventory of the Company’s products to compensate them for declines in market prices. The ultimate decision to authorize a distributor refund remains fully within the control of the Company. The Company accrues a provision for price protection based on a rolling historical price trend computed on a monthly basis as a percentage of gross distributor sales. This historical price trend represents differences in recent months between the invoiced price and the final price to the distributor, adjusted if required, to accommodate a significant change in the current market price. The short outstanding inventory time period, visibility into the standard inventory product pricing and long distributor pricing history have enabled the Company to reliably estimate price protection provisions at period-end. The Company records the accrued amounts as a deduction of revenue at the time of the sale. | |||||||||||||
The Company’s customers occasionally return the Company’s products for technical reasons. The Company’s standard terms and conditions of sale provide that if the Company determines that products do not conform, the Company will repair or replace the non-conforming products, or issue a credit note or rebate of the purchase price. Quality returns are not related to any technological obsolescence issues and are identified shortly after sale in customer quality control testing. Quality returns are usually associated with end-user customers, not with distribution channels. The Company provides for such returns when they are considered probable and can be reasonably estimated. The Company records the accrued amounts as a reduction of revenue. | |||||||||||||
The Company’s insurance policy relating to product liability only covers physical and other direct damages caused by defective products. The Company carries limited insurance against immaterial non consequential damages. The Company records a provision for warranty costs as a charge against cost of sales, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period. Any potential warranty claims are subject to the Company’s determination that the Company is at fault for damages, and such claims usually must be submitted within a short period of time following the date of sale. This warranty is given in lieu of all other warranties, conditions or terms expressed or implied by statute or common law. The Company’s contractual terms and conditions typically limit its liability to the sales value of the products which gave rise to the claims. | |||||||||||||
While the majority of the Company’s sales agreements contain standard terms and conditions, the Company may, from time to time, enter into agreements that contain multiple elements or non-standard terms and conditions, which require revenue recognition judgments. Where multiple elements exist in an arrangement, the arrangement is allocated to the different elements based on vendor-specific objective evidence, third party evidence or management’s best estimate of the selling price of the separable deliverables. These arrangements generally do not include performance-, cancellation-, termination- or refund-type provisions. | |||||||||||||
Revenues under multiple deliverable arrangements | |||||||||||||
The Company, from time to time, enters into agreements with multiple deliverables. The Company entered into certain agreements related to the licensing of manufacturing processes which include the delivery of a) licenses and process documentation and b) various training and implementation support. In the current agreements, the delivery of each instance of process documentation, as well as the training and support, are considered to be separate units of accounting. The timing of services in these arrangements varies depending on the contractual terms, but revenue is recognized either prorata for short duration service periods, or as the specific services are rendered for longer duration service periods, as appropriate. | |||||||||||||
As these manufacturing processes are not normally sold by the Company or other similar manufacturers, the valuation is based on best estimates of selling prices for such deliverables. These best estimates are determined by the groups responsible for the negotiation of the agreements and are primarily based on either: a) the total amount of the agreement, assuming that subsequent services are insignificant to the sale of the license and process documentation, b) cash payments to be paid by the customer in advance of delivery prior to incurring related services or training and/or c) information derived from the negotiation process between the Company and the customer. Training and support are valued based on past history of similar services or the group’s determined value based on a cost plus analysis. | |||||||||||||
The actual and past revenues for multiple deliverable arrangements are: | |||||||||||||
In millions of U.S. dollars | 2013 | 2012 | 2011 | ||||||||||
Licenses and process documentation | — | 9 | 56 | ||||||||||
Training and support services | 2 | 9 | 14 | ||||||||||
Total Revenues under Multiple Deliverable Arrangements | 2 | 18 | 70 | ||||||||||
Due to the long nature of some of the payments in these agreements, some revenue is deferred until collectability is reasonably assured. | |||||||||||||
Other revenues | |||||||||||||
Other revenues consist of license revenue, service revenue related to transferring licenses, patent royalty income, sale of scrap materials and manufacturing by-products. | |||||||||||||
Funding | |||||||||||||
The Company receives funding mainly from governmental agencies and income is recognized when all contractual conditions for receipt of these funds are fulfilled. The Company’s primary sources for government funding are French, Italian & other European Union (“EU”) governmental entities. Such funding is generally provided to encourage research and development activities, industrialization and local economic development. The conditions for receipt of government funding may include eligibility restrictions, approval by EU authorities, annual budget appropriations, compliance with European Commission regulations, as well as specifications regarding objectives and results. Certain specific contracts contain obligations to maintain a minimum level of employment and investment during a certain period of time. There could be penalties if these objectives are not fulfilled. Other contracts contain penalties for late deliveries or for breach of contract, which may result in repayment obligations. Funding related to these contracts is recorded when the conditions required by the contracts are met. The Company’s funding programs are classified under three general categories: funding for research and development activities, capital investment, and loans. | |||||||||||||
Funding for research and development activities is the most common form of funding that the Company receives. Public funding for research and development is recorded as “Other income and expenses, net” in the Company’s consolidated statements of income. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions are met. Furthermore, following the enactment of the French Finance Act for 2008, which included several changes to the research tax credit regime (“Crédit Impôt Recherche”), French research tax credits are deemed to be grants in substance. Unlike other research and development funding, the amounts to be received are determinable in advance and accruable as the funded research expenditures are made. They are thus reported as a reduction of research and development expenses. The research tax credits are to be paid in cash by the French tax authorities within three years in case they are not deducted from income tax payable during this period of time. | |||||||||||||
Capital investment funding is recorded as a reduction of “Property, plant and equipment, net” and is recognized in the Company’s consolidated statements of income according to the depreciation charges of the funded assets during their useful lives. The Company also receives capital funding in Italy, which could be recovered through the reduction of various governmental liabilities, including income taxes, value-added tax and employee-related social charges. | |||||||||||||
Funding receivables are reported as non-current assets unless cash settlement features of the receivables evidence that collection is expected within one year. Long-term receivables that do not present any tax attribute or legal restriction are reflected in the balance sheets at their discounted net present value. The subsequent accretion of the discounting effect is recorded as non-operating income in “Interest income (expense), net”. | |||||||||||||
The Company receives certain loans, mainly related to large capital investment projects, at preferential interest rates. The Company records these loans as debt in its consolidated balance sheets. | |||||||||||||
Advertising costs | ' | ||||||||||||
2.19 – Advertising costs | |||||||||||||
Advertising costs are expensed as incurred and are recorded as selling, general and administrative expenses. Advertising expenses for 2013, 2012 and 2011 were $11 million, $12 million and $12 million, respectively. | |||||||||||||
Research and development | ' | ||||||||||||
2.20 – Research and development | |||||||||||||
Research and development expenses include costs incurred by the Company, the Company’s share of costs incurred by other research and development interest groups, and costs associated with co-development contracts. Research and development expenses do not include marketing design center costs, which are accounted for as selling expenses and process engineering, pre-production or process transfer costs which are recorded as cost of sales. Research and development costs are expensed as incurred. The amortization expense recognized on technologies and licenses purchased by the Company from third parties to facilitate the Company’s research is reported as research and development expenses. Research and development expenses are reported net of research tax credits received in the French jurisdiction, as described in Note 2.18. | |||||||||||||
Start-up and phase-out costs | ' | ||||||||||||
2.21 – Start-up and phase-out costs | |||||||||||||
Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six-months after the fabrication line’s quality qualification. The costs of phase-outs are associated with the latest stages of facilities closure when the relevant production volumes become immaterial. Start-up costs and phase-out costs are included in “Other income and expenses, net” in the consolidated statements of income. | |||||||||||||
Financial assets | ' | ||||||||||||
2.22 – Financial assets | |||||||||||||
The Company did not hold at December 31, 2013 and 2012 any financial assets classified as held-to-maturity or financial assets for which the Company would have elected to apply the fair value option. Consequently, the Company classified its financial assets in the following categories: trading and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Unlisted equity securities with no readily determinable fair value are carried at cost, as described in Note 2.12. They are neither classified as held-for-trading nor as available-for-sale. | |||||||||||||
Purchases and sales of financial assets are recognized on the trade date – the date on which the Company commits to purchase or sell the asset. Financial assets classified as available-for-sale and as trading are initially recognized and subsequently carried at fair value. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership; the relevant gain (loss) is reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The basis on which the cost of a security sold and the amount reclassified out of accumulated other comprehensive income into earnings is the specific identification method. | |||||||||||||
The fair values of quoted debt and equity securities are based on current market prices. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using assumptions and estimates. These assumptions and estimates include the use of recent arm’s length transactions; for debt securities without available observable market prices, the Company establishes fair value by reference to publicly available indices of securities with the same rating and comparable or similar underlying collaterals or industries’ exposure, which the Company believes approximates the amount that would be received from the sale of the asset in an orderly transaction between market participants at the measurement date. In measuring fair value, the Company makes maximum use of market inputs and minimizes the use of unobservable inputs. | |||||||||||||
Trading financial assets | |||||||||||||
A financial asset is classified in this category if it is a security acquired principally for the purpose of selling in the short term or if it is a derivative instrument not designated as a hedge. Financial assets in this category are classified as current assets when they are expected to be realized within twelve months of the balance sheet date. Marked-to-market gains or losses arising from changes in the fair value of trading financial assets are reported in the consolidated statements of income within “Other income and expenses, net” in the period in which they arise, when the transactions for such instruments occur within the Company’s operating activities, as it is the case for trading derivatives that do not qualify as hedging instruments, as described in Note 2.23. Gains and losses arising from changes in the fair value of financial assets not related to operating activities, are presented in the consolidated statements of income as a non-operating element within “Gain (loss) on financial instruments, net” in the period in which they arise. | |||||||||||||
Available-for-sale financial assets | |||||||||||||
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified as held-for-trading. They are included in current assets when they represent investments of funds available for current operations or when management intends to dispose of the securities within twelve months of the balance sheet date. | |||||||||||||
Changes in fair value, including declines determined to be temporary, of securities classified as available-for-sale are recognized as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income. | |||||||||||||
The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets classified as available-for-sale is impaired. When equity securities classified as available-for-sale are determined to be other-than-temporarily impaired, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element on the consolidated statements of income on the line “Other-than-temporary impairment charge and realized gains (losses) on financial assets”. For debt securities, if a credit loss exists, but the Company does not intend to sell the impaired security and is not more likely than not to be required to sell before recovery, the impairment is separated into the estimated amount relating to credit loss, and the amount relating to all other factors of declines in fair value. Only the estimated credit loss amount is recognized currently in earnings on the line “Other-than-temporary impairment charge and realized gains (losses) on financial assets”, with the remainder of the loss amount recognized in accumulated other comprehensive income (loss). Impairment losses recognized in the consolidated statements of income are not reversed through earnings. | |||||||||||||
When securities classified as available-for-sale are sold, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings is determined based on the specific identification of the securities sold. | |||||||||||||
Derivative financial instruments and hedging activities | ' | ||||||||||||
2.23 – Derivative financial instruments and hedging activities | |||||||||||||
Derivative financial instruments are initially recognized on the date a derivative contract is entered into and are subsequently measured at fair value. The method of recognizing the gain or loss resulting from the derivative instrument depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the hedge transaction. The Company has designated certain derivatives as hedges of a particular risk associated with a highly probable forecasted transaction (cash flow hedge). | |||||||||||||
The Company documents, at inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Derivative instruments that are not designated as hedges are classified as trading financial assets, as described in Note 2.22. | |||||||||||||
Derivative financial instruments classified as trading | |||||||||||||
The Company conducts its business on a global basis in various major international currencies. As a result, the Company is exposed to adverse movements in foreign currency exchange rates. The Company enters into foreign currency forward contracts and currency options to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies at the Company’s subsidiaries. These instruments do not qualify as hedging instruments, and are marked-to-market at each period-end with the associated changes in fair value recognized in “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.22. | |||||||||||||
Cash Flow Hedge | |||||||||||||
To reduce its exposure to U.S. dollar exchange rate fluctuations, the Company hedges certain Euro-denominated forecasted transactions that cover at reporting date a large part of its research and development, selling, general and administrative expenses as well as a portion of its front-end manufacturing costs of semi-finished goods through the use of currency forward contracts and currency options, including collars. The Company also hedges through the use of currency forward contracts certain Singapore dollar-denominated manufacturing forecasted transactions. As part of its ongoing operating, investing and financing activities, the Company may from time to time enter into certain derivative transactions that are designated and qualify as a cash flow hedge. | |||||||||||||
The derivative instruments are designated and qualify for cash flow hedge at inception of the contract and on an ongoing basis over the duration of the hedge relationship. They are reflected at their fair value in the consolidated balance sheets. The criteria for designating a derivative as a hedge include the instrument’s effectiveness in risk reduction and, in most cases, a one-to-one matching of the derivative instrument to its underlying transaction with the critical terms of the hedging instrument matching the terms of the hedged forecasted transaction. This enables the Company to conclude that changes in cash flows attributable to the risk being hedged are expected to be completely offset by the hedging instruments. | |||||||||||||
For derivative instruments designated as cash flow hedge, the change in fair value from the effective portion of the hedge is reported as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income and is reclassified into earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line as the hedged transaction. For these derivatives, ineffectiveness appears if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transactions. Effectiveness on transactions hedged through purchased options is measured on the full fair value of the option, including time value. | |||||||||||||
When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was reported in “Accumulated other comprehensive income (loss)” in the consolidated statements of equity is immediately transferred to the consolidated statements of income within “Other income and expenses, net” if the de-designated derivative relates to operating activities. If upon de-designation, the derivative instrument is held in view to be sold with no direct relation with current operating activities, changes in the fair value of the derivative instrument following de-designation are reported as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. If the derivative is still related to operating activities, the changes in fair value subsequent to the discontinuance continue to be reported within “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.22. | |||||||||||||
In order to optimize its hedging strategy, the Company can be required to cease the designation of certain cash flow hedge transactions and enter into a new designated cash flow hedge transaction with the same hedged forecasted transaction but with a new hedging instrument. De-designation and re-designation are formally authorized and limited to the de-designation of purchased currency options with re-designation of the cash flow hedge through subsequent forward contracts when the Euro/U.S. dollar exchange rate is decreasing, the intrinsic value of the option is nil, the hedged transaction is still probable of occurrence and meets at re-designation date all criteria for hedge accounting. At de-designation date, the net derivative gain or loss related to the de-designated cash flow hedge continues to be reported in other comprehensive income. From de-designation date, the change in fair value of the de-designated hedging item is recognized each period in the consolidated statements of income on the line “Other income and expenses, net”, as described in Note 2.22. The net derivative gain or loss related to the de-designated cash flow hedge deferred in other comprehensive income is reclassified to earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line as the hedged transaction. | |||||||||||||
Recent accounting pronouncements | ' | ||||||||||||
2.24 – Recent accounting pronouncements | |||||||||||||
(a) | Accounting pronouncements effective in 2013 | ||||||||||||
In December 2011, the FASB issued new guidance on disclosures about offsetting assets and liabilities. Entities with balances presented on a net basis in the financial statements shall disclose both gross and net information about instruments and transactions eligible for offset in the consolidated balance sheet as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In February 2013, the FASB issued a guidance clarifying the scope of disclosures about offsetting assets and liabilities by limiting such scope to derivatives, repurchase agreements and securities lending transactions to the extent that they are offset in the financial statements or subject to an enforceable master netting agreement. The Company adopted the new guidance in 2013 and disclosures are included in Note 23. | |||||||||||||
In February 2013, the FASB issued new guidance on reporting amounts reclassified out of accumulated other comprehensive income. The new guidance requires that the effect of significant amounts reclassified from each component of accumulated other comprehensive income be presented either in a single note or parenthetically on the face of the financial statements, based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. The Company adopted the new guidance in 2013 and reported amounts reclassified out of accumulated other comprehensive income in Note 15. | |||||||||||||
In July 2013, the FASB issued guidance on how to present an unrecognized tax benefit (“UTB”) when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under the new guidance, UTBs will be netted against all available same-jurisdiction losses or other tax carryforwards that would be utilized. The new guidance must be adopted prospectively, but optional retrospective adoption for all periods presented is allowed. The guidance is effective for annual and interim reporting periods beginning after December 15, 2013, with early adoption permitted. The Company early adopted the guidance as at December 31, 2013, on a prospective basis. The impact of the new guidance upon adoption was the presentation of $229 million unrecognized tax benefits against existing net operating loss carryforward available in four tax jurisdictions, reported on the line “Non-current deferred tax assets” of the consolidated balance sheet as at December 31, 2013. | |||||||||||||
(b) | Accounting pronouncements expected to impact the Company’s operations that are not yet effective and have not been adopted early by the Company | ||||||||||||
In March 2013, the FASB issued new guidance on obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. An entity should recognize the respective portion of the obligation it agrees to pay among its co-obligors and assess any additional amounts it expects to pay related to amounts borrowed by its co-obligors applying the measurement principles of the contingencies model under ASC 450. Enhanced disclosures similar to those required for financial guarantees will be required for those obligations. The guidance is effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The Company will adopt the new guidance when effective and does not expect any significant impact of this adoption. | |||||||||||||
In March 2013, the FASB issued clarified guidance on whether, when and how to release cumulative translation adjustment (“CTA”) into earnings in various deconsolidation and consolidation transactions. Complete or substantially complete liquidation of a foreign entity is required to release CTA for transactions occurring within a foreign entity. Transactions impacting investments in the foreign entity may result in a full or partial release of CTA even though complete or substantially complete liquidation of the foreign entity has not occurred. For transactions involving step acquisitions, the CTA associated with the previous equity-method investment will be fully released when control is obtained and consolidation occurs. The guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. The Company will adopt the guidance when effective. |
Accounting_Policies_Tables
Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Property, Plant and Equipment Useful Lives | ' | ||||||||||||
Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: | |||||||||||||
Buildings | 33 years | ||||||||||||
Facilities and leasehold improvements | 5-10 years | ||||||||||||
Machinery and equipment | 3-10 years | ||||||||||||
Computer and R&D equipment | 3-6 years | ||||||||||||
Other | 2-5 years | ||||||||||||
Actual and Past Revenues for Multiple Deliverable Arrangements | ' | ||||||||||||
The actual and past revenues for multiple deliverable arrangements are: | |||||||||||||
In millions of U.S. dollars | 2013 | 2012 | 2011 | ||||||||||
Licenses and process documentation | — | 9 | 56 | ||||||||||
Training and support services | 2 | 9 | 14 | ||||||||||
Total Revenues under Multiple Deliverable Arrangements | 2 | 18 | 70 | ||||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||
Changes in Value of Marketable Securities Reported in Current and Non-Current Assets on Consolidated Balance Sheets | ' | ||||||||||||||||||||||||||||
Changes in the value of marketable securities, as reported in current assets on the consolidated balance sheets as at December 31, 2013 and December 31, 2012 are detailed in the tables below: | |||||||||||||||||||||||||||||
In millions of U.S. dollars | December 31, | Purchase | Sale | Change in | Change in | Foreign | December 31, | ||||||||||||||||||||||
2012 | fair value | fair value | exchange | 2013 | |||||||||||||||||||||||||
included in | recognized | result | |||||||||||||||||||||||||||
OCI* for | in earnings | through | |||||||||||||||||||||||||||
available- | OCI* | ||||||||||||||||||||||||||||
for-sale | |||||||||||||||||||||||||||||
marketable | |||||||||||||||||||||||||||||
securities | |||||||||||||||||||||||||||||
Debt securities issued by the U.S. Treasury | 150 | — | (150 | ) | — | — | — | — | |||||||||||||||||||||
Senior debt Floating Rate Notes issued by financial institutions | 88 | — | (34 | ) | — | — | 3 | 57 | |||||||||||||||||||||
Total | 238 | — | (184 | ) | — | — | 3 | 57 | |||||||||||||||||||||
* | Other Comprehensive Income | ||||||||||||||||||||||||||||
In millions of U.S. dollars | December 31, | Purchase | Sale | Change in | Change in | Foreign | December 31, | ||||||||||||||||||||||
2011 | fair value | fair value | exchange | 2012 | |||||||||||||||||||||||||
included in | recognized | result | |||||||||||||||||||||||||||
OCI* for | in earnings | through | |||||||||||||||||||||||||||
available- | OCI* | ||||||||||||||||||||||||||||
for-sale | |||||||||||||||||||||||||||||
marketable | |||||||||||||||||||||||||||||
securities | |||||||||||||||||||||||||||||
Debt securities issued by the U.S. Treasury | 100 | 450 | (400 | ) | — | — | — | 150 | |||||||||||||||||||||
Debt securities issued by foreign governments | 81 | — | (81 | ) | — | — | — | — | |||||||||||||||||||||
Fixed rate debt securities issued by financial institutions | 27 | — | (25 | ) | — | — | (2 | ) | — | ||||||||||||||||||||
Senior debt Floating Rate Notes issued by financial institutions | 205 | — | (124 | ) | 6 | 1 | — | 88 | |||||||||||||||||||||
Total | 413 | 450 | (630 | ) | 6 | 1 | (2 | ) | 238 | ||||||||||||||||||||
* | Other Comprehensive Income |
Trade_Accounts_Receivable_Net_
Trade Accounts Receivable, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Trade Accounts Receivable, Net | ' | ||||||||
Trade accounts receivable, net consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Trade accounts receivable | 1,058 | 1,015 | |||||||
Allowance for doubtful accounts | (9 | ) | (10 | ) | |||||
Total | 1,049 | 1,005 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories, Net of Reserve | ' | ||||||||
Inventories, net of reserve, consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | 84 | 78 | |||||||
Work-in-process | 885 | 941 | |||||||
Finished products | 367 | 334 | |||||||
Total | 1,336 | 1,353 |
Other_Current_Assets_Tables
Other Current Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Current Assets | ' | ||||||||
Other current assets consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Receivables from government agencies | 127 | 156 | |||||||
Taxes and other government receivables | 56 | 68 | |||||||
Advances | 46 | 84 | |||||||
Prepayments | 54 | 74 | |||||||
Loans and deposits | 13 | 15 | |||||||
Interest receivable | 1 | 1 | |||||||
Derivative instruments | 43 | 36 | |||||||
Receivables from equity-method investments | 8 | 16 | |||||||
Other current assets | 41 | 68 | |||||||
Total | 389 | 518 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||
Goodwill allocated to reportable segments as of December 31, 2013 and 2012 and changes in the carrying amount of goodwill during the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||
Sense & Power | Embedded | Others | Total | ||||||||||||||
and Automotive | Processing | ||||||||||||||||
(SP&A) | Solutions (EPS) | ||||||||||||||||
December 31, 2011 | 11 | 1,043 | 5 | 1,059 | |||||||||||||
Business Combinations | 1 | — | — | 1 | |||||||||||||
Foreign currency translation | — | 3 | — | 3 | |||||||||||||
Impairment loss | — | (922 | ) | — | (922 | ) | |||||||||||
December 31, 2012 | 12 | 124 | 5 | 141 | |||||||||||||
Sale of business | — | — | (5 | ) | (5 | ) | |||||||||||
Re-classification to AHFS | (10 | ) | — | — | (10 | ) | |||||||||||
Foreign currency translation | — | 2 | — | 2 | |||||||||||||
Impairment loss | — | (38 | ) | — | (38 | ) | |||||||||||
December 31, 2013 | 2 | 88 | — | 90 |
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Other Intangible Assets | ' | ||||||||||||
Other intangible assets consisted of the following: | |||||||||||||
December 31, 2013 | Gross Cost | Accumulated | Net Cost | ||||||||||
Amortization | |||||||||||||
Technologies & licences | 616 | (484 | ) | 132 | |||||||||
Contractual customer relationships | 5 | (5 | ) | — | |||||||||
Purchased software | 338 | (290 | ) | 48 | |||||||||
Construction in progress | 37 | — | 37 | ||||||||||
Other intangible assets | 62 | (62 | ) | — | |||||||||
Total | 1,058 | (841 | ) | 217 | |||||||||
December 31, 2012 | Gross Cost | Accumulated | Net Cost | ||||||||||
Amortization | |||||||||||||
Technologies & licences | 742 | (630 | ) | 112 | |||||||||
Contractual customer relationships | 13 | (11 | ) | 2 | |||||||||
Purchased software | 356 | (312 | ) | 44 | |||||||||
Construction in progress | 39 | — | 39 | ||||||||||
Other intangible assets | 104 | (88 | ) | 16 | |||||||||
Total | 1,254 | (1,041 | ) | 213 | |||||||||
Estimated Amortization Expense of Existing Intangible Assets | ' | ||||||||||||
The estimated amortization expense of the existing intangible assets for the following years is: | |||||||||||||
Year | |||||||||||||
2014 | 64 | ||||||||||||
2015 | 55 | ||||||||||||
2016 | 45 | ||||||||||||
2017 | 26 | ||||||||||||
2018 | 13 | ||||||||||||
Thereafter | 14 | ||||||||||||
Total | 217 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
Property, plant and equipment consisted of the following: | |||||||||||||
December 31, 2013 | Gross Cost | Accumulated | Net Cost | ||||||||||
Depreciation | |||||||||||||
Land | 94 | — | 94 | ||||||||||
Buildings | 987 | (429 | ) | 558 | |||||||||
Facilities & leasehold improvements | 3,218 | (2,826 | ) | 392 | |||||||||
Machinery and equipment | 14,684 | (12,728 | ) | 1,956 | |||||||||
Computer and R&D equipment | 463 | (414 | ) | 49 | |||||||||
Other tangible assets | 137 | (121 | ) | 16 | |||||||||
Construction in progress | 91 | — | 91 | ||||||||||
Total | 19,674 | (16,518 | ) | 3,156 | |||||||||
December 31, 2012 | Gross Cost | Accumulated | Net Cost | ||||||||||
Depreciation | |||||||||||||
Land | 93 | — | 93 | ||||||||||
Buildings | 966 | (395 | ) | 571 | |||||||||
Facilities & leasehold improvements | 3,151 | (2,649 | ) | 502 | |||||||||
Machinery and equipment | 14,553 | (12,363 | ) | 2,190 | |||||||||
Computer and R&D equipment | 504 | (451 | ) | 53 | |||||||||
Other tangible assets | 165 | (145 | ) | 20 | |||||||||
Construction in progress | 52 | — | 52 | ||||||||||
Total | 19,484 | (16,003 | ) | 3,481 | |||||||||
LongTerm_Investments_Tables
Long-Term Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Long-Term Investments | ' | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Equity-method investments | 63 | 106 | |||||||||||||||
Cost-method investments | 13 | 13 | |||||||||||||||
Total | 76 | 119 | |||||||||||||||
Equity Investments | ' | ||||||||||||||||
Equity-method investments as at December 31, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
In millions of U.S. dollars, except percentages | December 31, 2013 | December 31, 2012 | |||||||||||||||
Carrying | Ownership | Carrying | Ownership | ||||||||||||||
value | percentage | value | percentage | ||||||||||||||
ST-Ericsson AT SA | — | — | 9 | 49 | % | ||||||||||||
ST-Ericsson SA | 50 | 50 | % | — | — | ||||||||||||
3Sun S.r.l. | 13 | 33.3 | % | 91 | 33.3 | % | |||||||||||
MicroOLED SAS | — | 39.6 | % | 6 | 39.6 | % | |||||||||||
Total | 63 | 106 | |||||||||||||||
Summarized Financial Information of Company's Equity-Method Investments | ' | ||||||||||||||||
The summarized financial information of the Company’s equity-method investments as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 is presented below: | |||||||||||||||||
In millions of U.S. dollars | December 31, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Current assets | 266 | 121 | |||||||||||||||
Non-current assets | 287 | 573 | |||||||||||||||
Current liabilities | 178 | 168 | |||||||||||||||
Non-current liabilities | 249 | 297 | |||||||||||||||
In millions of U.S. dollars | 2013 | 2012 | 2011 | ||||||||||||||
Total revenues | 282 | 422 | 255 | ||||||||||||||
Operating income (loss) | (271 | ) | (51 | ) | (10 | ) | |||||||||||
Net income (loss) | (282 | ) | (103 | ) | (11 | ) |
Other_NonCurrent_Assets_Tables
Other Non-Current Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Investments All Other Investments [Abstract] | ' | ||||||||
Other Investment and Other Non Current Assets | ' | ||||||||
Other non-current assets consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Available-for-sale equity securities | 11 | 10 | |||||||
Trading equity securities | 8 | 8 | |||||||
Long-term State receivables | 513 | 470 | |||||||
Long-term receivables from third parties | 7 | 2 | |||||||
Long-term loans to affiliates | 17 | 28 | |||||||
Prepaid for pension | 10 | 5 | |||||||
Deposits and other non-current assets | 34 | 37 | |||||||
Total | 600 | 560 |
Other_Payables_and_Accrued_Lia1
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Other Payables and Accrued Liabilities | ' | ||||||||
Other payables and accrued liabilities consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Employee related liabilities | 383 | 397 | |||||||
Employee compensated absences | 128 | 127 | |||||||
Taxes other than income taxes | 85 | 71 | |||||||
Advances | 32 | 45 | |||||||
Payables to equity-method investments | 81 | 45 | |||||||
Obligations for capacity rights | 3 | 1 | |||||||
Derivative instruments | 4 | 1 | |||||||
Provision for restructuring | 65 | 75 | |||||||
Current portion of pension | 12 | 16 | |||||||
Royalties | 37 | 39 | |||||||
Others | 107 | 125 | |||||||
Total | 937 | 942 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-term debt consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Funding program loans from European Investment Bank: | |||||||||
0.26% due 2014, floating interest rate at Libor + 0.017% | 20 | 40 | |||||||
0.26% due 2015, floating interest rate at Libor + 0.026% | 19 | 28 | |||||||
0.29% due 2016, floating interest rate at Libor + 0.052% | 58 | 77 | |||||||
0.56% due 2016, floating interest rate at Libor + 0.317% | 77 | 103 | |||||||
0.46% due 2016, floating interest rate at Libor + 0.213% | 86 | 114 | |||||||
1.34% due 2020, floating interest rate at Libor + 1.099% | 87 | 100 | |||||||
1.20% due 2020, floating interest rate at Libor + 0.956% | 193 | 221 | |||||||
1.04% due 2020, floating interest rate at Euribor + 0.817% | 121 | 132 | |||||||
0.88% due 2021, floating interest rate at Libor + 0.525% | 240 | — | |||||||
0.92% due 2021, floating interest rate at Libor + 0.572% | 231 | — | |||||||
Other funding program loans: | |||||||||
0.55% (weighted average), due 2014-2018, fixed interest rate | 5 | 7 | |||||||
Other long-term loans: | |||||||||
1.95% (weighted average), due 2017, fixed interest rate | 10 | 12 | |||||||
0.67% (weighted average), due 2018, fixed interest rate | 2 | — | |||||||
0.87% (weighted average), due 2020, fixed interest rate | 3 | — | |||||||
Capital leases: | |||||||||
5.95% (weighted average), due 2015-2017, fixed interest rate | 1 | 5 | |||||||
Senior Bonds: | |||||||||
0.58%, due 2013, floating interest rate at Euribor + 0.40% | — | 462 | |||||||
Total long-term debt | 1,153 | 1,301 | |||||||
Less current portion | (225 | ) | (630 | ) | |||||
Total long-term debt, less current portion | 928 | 671 | |||||||
Long-Term Debt Denominated by Currencies | ' | ||||||||
Long-term debt is denominated in the following currencies: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
U.S. dollar | 1,012 | 689 | |||||||
Euro | 141 | 612 | |||||||
Total | 1,153 | 1,301 | |||||||
Total Long-Term Debt Outstanding Maturities | ' | ||||||||
Aggregate future maturities of total long-term debt outstanding (including current portion) are as follows: | |||||||||
December 31, | |||||||||
2013 | |||||||||
2014 | 225 | ||||||||
2015 | 205 | ||||||||
2016 | 195 | ||||||||
2017 | 119 | ||||||||
2018 | 117 | ||||||||
Thereafter | 292 | ||||||||
Total | 1,153 | ||||||||
PostEmployment_and_Other_LongT1
Post-Employment and Other Long-Term Employees Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Changes in Benefit Obligation and Plan Assets | ' | ||||||||||||||||||||||||
The changes in benefit obligation and plan assets were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Long-Term Benefits | ||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | 901 | 794 | 63 | 52 | |||||||||||||||||||||
Service cost | 37 | 40 | 8 | 9 | |||||||||||||||||||||
Interest cost | 28 | 31 | 2 | 3 | |||||||||||||||||||||
Employee contributions | 5 | 6 | — | — | |||||||||||||||||||||
Benefits paid | (19 | ) | (21 | ) | (4 | ) | (3 | ) | |||||||||||||||||
Effect of curtailment | (3 | ) | — | (2 | ) | — | |||||||||||||||||||
Effect of settlement | (32 | ) | (31 | ) | — | — | |||||||||||||||||||
Actuarial (gain) loss | (92 | ) | 58 | — | 2 | ||||||||||||||||||||
Transfer in | 12 | 70 | 1 | 3 | |||||||||||||||||||||
Transfer out | (12 | ) | (70 | ) | (1 | ) | (3 | ) | |||||||||||||||||
Acquisition / change in scope | 9 | — | 1 | — | |||||||||||||||||||||
Plan amendment | 5 | 4 | — | — | |||||||||||||||||||||
ST-Ericsson deconsolidation | (49 | ) | — | (4 | ) | — | |||||||||||||||||||
Foreign currency translation adjustment | 17 | 20 | 1 | — | |||||||||||||||||||||
Benefit obligation at end of year | 807 | 901 | 65 | 63 | |||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Plan assets at fair value at beginning of year | 422 | 378 | — | — | |||||||||||||||||||||
Expected return on plan assets | 18 | 18 | — | — | |||||||||||||||||||||
Employer contributions | 29 | 34 | — | — | |||||||||||||||||||||
Employee contributions | 5 | 6 | — | — | |||||||||||||||||||||
Benefits paid | (9 | ) | (11 | ) | — | — | |||||||||||||||||||
Effect of settlement | (25 | ) | (30 | ) | — | — | |||||||||||||||||||
Actuarial gain (loss) | 14 | 17 | — | — | |||||||||||||||||||||
Transfer in | 8 | 40 | — | — | |||||||||||||||||||||
Transfer out | (8 | ) | (40 | ) | — | — | |||||||||||||||||||
Foreign currency translation adjustments | 5 | 10 | — | — | |||||||||||||||||||||
ST-Ericsson deconsolidation | (11 | ) | — | — | — | ||||||||||||||||||||
Plan assets at fair value at end of year | 448 | 422 | — | — | |||||||||||||||||||||
Funded status | (359 | ) | (479 | ) | (65 | ) | (63 | ) | |||||||||||||||||
Net amount recognized in the balance sheet consisted of the following: | |||||||||||||||||||||||||
Non-current assets | 10 | 5 | — | — | |||||||||||||||||||||
Current liabilities | (12 | ) | (16 | ) | (5 | ) | (3 | ) | |||||||||||||||||
Long-term liabilities | (357 | ) | (468 | ) | (60 | ) | (60 | ) | |||||||||||||||||
Net amount recognized | (359 | ) | (479 | ) | (65 | ) | (63 | ) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Before Tax Effects | ' | ||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss) before tax effects were as follows: | |||||||||||||||||||||||||
Actuarial | Prior service | Total | |||||||||||||||||||||||
(gains)/losses | cost | ||||||||||||||||||||||||
Other comprehensive loss as at December 31, 2011 | 175 | 10 | 185 | ||||||||||||||||||||||
Net amount generated/arising in current year | 43 | 4 | 47 | ||||||||||||||||||||||
Amortization | (14 | ) | (5 | ) | (19 | ) | |||||||||||||||||||
Foreign currency translation adjustment | 5 | — | 5 | ||||||||||||||||||||||
Other comprehensive loss as at December 31, 2012 | 209 | 9 | 218 | ||||||||||||||||||||||
Net amount generated/arising in current year | (105 | ) | 5 | (100 | ) | ||||||||||||||||||||
Amortization | (15 | ) | (5 | ) | (20 | ) | |||||||||||||||||||
Foreign currency translation adjustment | 2 | — | 2 | ||||||||||||||||||||||
Other comprehensive loss as at December 31, 2013 | 91 | 9 | 100 | ||||||||||||||||||||||
Schedule of Accumulated Benefit Obligations | ' | ||||||||||||||||||||||||
The accumulated benefit obligations were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Long-Term Benefits | ||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Accumulated benefit obligations | 717 | 779 | 51 | 49 | |||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
The components of the net periodic benefit cost included the following: | |||||||||||||||||||||||||
Pension Benefits | Other Long-term Benefits | ||||||||||||||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Service cost | 37 | 40 | 34 | 8 | 9 | 8 | |||||||||||||||||||
Interest cost | 28 | 31 | 33 | 2 | 3 | 3 | |||||||||||||||||||
Expected return on plan assets | (18 | ) | (18 | ) | (20 | ) | — | — | — | ||||||||||||||||
Amortization of actuarial net loss (gain) | 11 | 12 | 6 | — | 2 | (5 | ) | ||||||||||||||||||
Amortization of prior service cost | 5 | 5 | 1 | — | — | — | |||||||||||||||||||
Effect of settlement | 1 | — | (1 | ) | — | — | |||||||||||||||||||
Effect of curtailment | — | — | — | (2 | ) | — | — | ||||||||||||||||||
Net periodic benefit cost | 64 | 70 | 53 | 8 | 14 | 6 | |||||||||||||||||||
Weighted Average Assumptions Used in Determination of Benefit Obligation and Plan Assets | ' | ||||||||||||||||||||||||
The weighted average assumptions used in the determination of the benefit obligation and the plan assets for the pension plans and the other long-term benefits were as follows: | |||||||||||||||||||||||||
Assumptions | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 3.83 | % | 3.43 | % | |||||||||||||||||||||
Salary increase rate | 2.82 | % | 2.92 | % | |||||||||||||||||||||
Expected long-term rate of return on funds for the pension expense of the year | 4.88 | % | 4.43 | % | |||||||||||||||||||||
The weighted average assumptions used in the determination of the net periodic benefit cost for the pension plans and the other long-term benefits were as follows: | |||||||||||||||||||||||||
Assumptions | Year ended | Year ended | Year ended | ||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Discount rate | 3.43 | % | 4.14 | % | 4.68 | % | |||||||||||||||||||
Salary increase rate | 2.92 | % | 2.99 | % | 3.13 | % | |||||||||||||||||||
Expected long-term rate of return on funds for the pension expense of the year | 4.43 | % | 4.57 | % | 4.99 | % | |||||||||||||||||||
Pension Plan Asset Allocation | ' | ||||||||||||||||||||||||
The Company’s pension plan asset allocation at December 31, 2013 and at December 31, 2012 is as follows: | |||||||||||||||||||||||||
Percentage of Plan Assets at December | |||||||||||||||||||||||||
Asset Category | 2013 | 2012 | |||||||||||||||||||||||
Equity securities | 43 | % | 37 | % | |||||||||||||||||||||
Bonds securities remunerating interest | 30 | % | 31 | % | |||||||||||||||||||||
Real estate | 2 | % | 2 | % | |||||||||||||||||||||
Other | 25 | % | 30 | % | |||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
Pension Plan Asset Allocation Including Fair-Value Measurements | ' | ||||||||||||||||||||||||
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2013 is as follows: | |||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 3) | ||||||||||||||||||||||||
Cash and cash equivalents | 7 | 7 | — | — | |||||||||||||||||||||
Equity securities | 192 | 7 | 185 | — | |||||||||||||||||||||
Government debt securities | 12 | 12 | — | — | |||||||||||||||||||||
Corporate debt securities | 122 | 4 | 118 | — | |||||||||||||||||||||
Investment funds | 1 | 1 | — | — | |||||||||||||||||||||
Real estate | 9 | — | 5 | 4 | |||||||||||||||||||||
Other (mainly insurance assets – contracts and reserves) | 105 | — | — | 105 | |||||||||||||||||||||
TOTAL | 448 | 31 | 308 | 109 | |||||||||||||||||||||
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2012 is as follows: | |||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 3) | ||||||||||||||||||||||||
Cash and cash equivalents | 5 | 5 | — | — | |||||||||||||||||||||
Equity securities | 156 | 9 | 147 | — | |||||||||||||||||||||
Government debt securities | 13 | 12 | 1 | — | |||||||||||||||||||||
Corporate debt securities | 119 | 4 | 115 | — | |||||||||||||||||||||
Investment funds | 7 | 1 | 3 | 3 | |||||||||||||||||||||
Real estate | 9 | — | 5 | 4 | |||||||||||||||||||||
Other (mainly insurance assets – contracts and reserves) | 113 | — | — | 113 | |||||||||||||||||||||
TOTAL | 422 | 31 | 271 | 120 | |||||||||||||||||||||
Reconciliation for Plan Assets Measured at Fair Value Using Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||||||
For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2013 and December 31, 2013 is presented as follows: | |||||||||||||||||||||||||
In millions of U.S. dollars | Fair Value Measurements | ||||||||||||||||||||||||
using Significant | |||||||||||||||||||||||||
Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
January 1, 2013 | 120 | ||||||||||||||||||||||||
Contributions (employer and employee) | 15 | ||||||||||||||||||||||||
Benefits paid | (2 | ) | |||||||||||||||||||||||
Settlements | (23 | ) | |||||||||||||||||||||||
ST-Ericsson deconsolidation | (4 | ) | |||||||||||||||||||||||
Foreign currency translation adjustment | 3 | ||||||||||||||||||||||||
31-Dec-13 | 109 | ||||||||||||||||||||||||
For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2012 and December 31, 2012 is presented as follows: | |||||||||||||||||||||||||
In millions of U.S. dollars | Fair Value Measurements | ||||||||||||||||||||||||
using Significant | |||||||||||||||||||||||||
Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
January 1, 2012 | 104 | ||||||||||||||||||||||||
Actual return on plan assets | 3 | ||||||||||||||||||||||||
Contributions (employer and employee) | 16 | ||||||||||||||||||||||||
Benefits paid | (3 | ) | |||||||||||||||||||||||
Settlements | (7 | ) | |||||||||||||||||||||||
Reclassification to Level 3 | 4 | ||||||||||||||||||||||||
Foreign currency translation adjustment | 3 | ||||||||||||||||||||||||
31-Dec-12 | 120 | ||||||||||||||||||||||||
Estimated Future Benefit Payments | ' | ||||||||||||||||||||||||
The Company’s estimated future benefit payments as of December 2013 are as follows: | |||||||||||||||||||||||||
Years | Pension Benefits | Other Long-term Benefits | |||||||||||||||||||||||
2014 | 29 | 5 | |||||||||||||||||||||||
2015 | 21 | 9 | |||||||||||||||||||||||
2016 | 20 | 4 | |||||||||||||||||||||||
2017 | 34 | 4 | |||||||||||||||||||||||
2018 | 31 | 5 | |||||||||||||||||||||||
From 2019 to 2023 | 211 | 28 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||||||||||||||||||||||
A summary of the stock option activity for the plans for the three years ended December 31, 2013, 2012 and 2011 follows: | |||||||||||||||||||||||||||||||||||||||||
Exercise Price Per Share | |||||||||||||||||||||||||||||||||||||||||
Number of Shares | Range | Weighted | |||||||||||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2010 | 35,296,895 | $ | 16.73-$39.00 | $ | 27.17 | ||||||||||||||||||||||||||||||||||||
Options forfeited | (8,843,743 | ) | $ | 17.08-$39.00 | $ | 35.11 | |||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2011 | 26,453,152 | $ | 16.73-$33.70 | $ | 24.51 | ||||||||||||||||||||||||||||||||||||
Options forfeited | (9,762,680 | ) | $ | 17.08-$33.70 | $ | 30.5 | |||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2012 | 16,690,472 | $ | 16.73-$27.21 | $ | 21 | ||||||||||||||||||||||||||||||||||||
Options forfeited | (8,400,221 | ) | $ | 16.73-$27.21 | $ | 19.39 | |||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 8,290,251 | $ | 16.73-$27.21 | $ | 22.64 | ||||||||||||||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Compensation Payment Award, Options, Vested and Expected to Vest, Exercisable | ' | ||||||||||||||||||||||||||||||||||||||||
The range of exercise prices, the weighted average exercise price and the weighted average remaining contractual life of options exercisable as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||||
Number of shares | Option price | Weighted | Weighted | ||||||||||||||||||||||||||||||||||||||
Range | average | average | |||||||||||||||||||||||||||||||||||||||
exercise price | remaining | ||||||||||||||||||||||||||||||||||||||||
contractual life | |||||||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||||||
1,900 | $25.90-$27.21 | $27.21 | 0.01 | ||||||||||||||||||||||||||||||||||||||
8,188,365 | $19.18-$22.83 | $22.71 | 0.32 | ||||||||||||||||||||||||||||||||||||||
99,986 | $16.73-$17.08 | $17.03 | 0.72 | ||||||||||||||||||||||||||||||||||||||
Classification of Pre-Payroll Tax and Social Contribution Stock-Based Compensation Expense Included in Consolidated Statements of Income | ' | ||||||||||||||||||||||||||||||||||||||||
The following table illustrates the classification of pre-payroll tax and social contribution stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively: | |||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
Cost of sales | 5 | 2 | 5 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 13 | 6 | 16 | ||||||||||||||||||||||||||||||||||||||
Research and development | 8 | 3 | 8 | ||||||||||||||||||||||||||||||||||||||
Total pre-payroll tax and social contribution compensation | 26 | 11 | 29 | ||||||||||||||||||||||||||||||||||||||
Changes in AOCI Attributable to Stockholders | ' | ||||||||||||||||||||||||||||||||||||||||
The table below details the changes in AOCI attributable to the company’s stockholders by component, net of tax, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||||||
Cash | Available- | Defined | Foreign | Total | |||||||||||||||||||||||||||||||||||||
Flow | For-Sale | Benefit | Currency | ||||||||||||||||||||||||||||||||||||||
Hedges | Securities | Pension | Translation | ||||||||||||||||||||||||||||||||||||||
Plan Items | Adjustments | ||||||||||||||||||||||||||||||||||||||||
(“CTA”) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | 61 | 26 | (88 | ) | 969 | 968 | |||||||||||||||||||||||||||||||||||
Cumulative tax impact | — | (4 | ) | 15 | — | 11 | |||||||||||||||||||||||||||||||||||
December 31, 2010, net of tax | 61 | 22 | (73 | ) | 969 | 979 | |||||||||||||||||||||||||||||||||||
OCI before reclassifications | (15 | ) | — | (81 | ) | (101 | ) | (197 | ) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (110 | ) | (33 | ) | 3 | — | (140 | ) | |||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2011 | (125 | ) | (33 | ) | (78 | ) | (101 | ) | (337 | ) | |||||||||||||||||||||||||||||||
Cumulative tax impact | 9 | 1 | 18 | — | 28 | ||||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2011, net of tax | (116 | ) | (32 | ) | (60 | ) | (101 | ) | (309 | ) | |||||||||||||||||||||||||||||||
December 31, 2011 | (64 | ) | (7 | ) | (166 | ) | 868 | 631 | |||||||||||||||||||||||||||||||||
Cumulative tax impact | 9 | (3 | ) | 33 | — | 39 | |||||||||||||||||||||||||||||||||||
December 31, 2011, net of tax | (55 | ) | (10 | ) | (133 | ) | 868 | 670 | |||||||||||||||||||||||||||||||||
OCI before reclassifications | 28 | 6 | (57 | ) | 64 | 41 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | 62 | — | 18 | — | 80 | ||||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2012 | 90 | 6 | (39 | ) | 64 | 121 | |||||||||||||||||||||||||||||||||||
Cumulative tax impact | (11 | ) | — | 14 | — | 3 | |||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2012, net of tax | 79 | 6 | (25 | ) | 64 | 124 | |||||||||||||||||||||||||||||||||||
December 31, 2012 | 26 | (1 | ) | (205 | ) | 932 | 752 | ||||||||||||||||||||||||||||||||||
Cumulative tax impact | (2 | ) | (3 | ) | 47 | — | 42 | ||||||||||||||||||||||||||||||||||
December 31, 2012, net of tax | 24 | (4 | ) | (158 | ) | 932 | 794 | ||||||||||||||||||||||||||||||||||
OCI before reclassifications | 40 | 2 | 80 | 104 | 226 | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (28 | ) | — | 14 | — | (14 | ) | ||||||||||||||||||||||||||||||||||
Impact of ST-Ericsson deconsolidation | — | — | 11 | 49 | 60 | ||||||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2013 | 12 | 2 | 105 | 153 | 272 | ||||||||||||||||||||||||||||||||||||
Cumulative tax impact | (3 | ) | 3 | (24 | ) | — | (24 | ) | |||||||||||||||||||||||||||||||||
OCI for the year ended December 31, 2013, net of tax | 9 | 5 | 81 | 153 | 248 | ||||||||||||||||||||||||||||||||||||
December 31, 2013 | 38 | 1 | (100 | ) | 1,085 | 1,024 | |||||||||||||||||||||||||||||||||||
Cumulative tax impact | (5 | ) | — | 23 | — | 18 | |||||||||||||||||||||||||||||||||||
December 31, 2013, net of tax | 33 | 1 | (77 | ) | 1,085 | 1,042 | |||||||||||||||||||||||||||||||||||
Schedule of Items Reclassified Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||||||||||||||||||
Items reclassified out of Accumulated Other Comprehensive Income for the years ended December 31, 2013, 2012 and 2011 are listed in the table below: | |||||||||||||||||||||||||||||||||||||||||
Details about AOCI components | Amounts | Amounts | Amounts | Affected line item | |||||||||||||||||||||||||||||||||||||
reclassified from | reclassified from | reclassified from | in the statement where net income | ||||||||||||||||||||||||||||||||||||||
AOCI in the | AOCI in the | AOCI in the | (loss) is presented | ||||||||||||||||||||||||||||||||||||||
year ended | year ended | year ended | |||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||
Gains (Losses) on Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | 16 | (39 | ) | 65 | Cost of sales | ||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | 3 | (5 | ) | 8 | Selling, general and administrative | ||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | 14 | (27 | ) | 44 | Research and development | ||||||||||||||||||||||||||||||||||||
Foreign exchange derivative contracts | — | — | 6 | Gain (loss) on financial instruments, net | |||||||||||||||||||||||||||||||||||||
(4 | ) | 12 | (11 | ) | Income tax expense | ||||||||||||||||||||||||||||||||||||
29 | (59 | ) | 112 | Net of tax | |||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plan Items | |||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial gains (losses) | (1 | ) | (1 | ) | — | Cost of sales | |||||||||||||||||||||||||||||||||||
Amortization of actuarial gains (losses) | (5 | ) | (6 | ) | — | Selling, general and administrative | |||||||||||||||||||||||||||||||||||
Amortization of actuarial gains (losses) | (6 | ) | (7 | ) | (1 | ) | Research and development | ||||||||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | Cost of sales | |||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | — | Selling, general and administrative | |||||||||||||||||||||||||||||||||||
Amortization of prior service cost | (4 | ) | (4 | ) | (1 | ) | Research and development | ||||||||||||||||||||||||||||||||||
5 | 6 | 1 | Income tax benefit | ||||||||||||||||||||||||||||||||||||||
(12 | ) | (13 | ) | (1 | ) | Net of tax | |||||||||||||||||||||||||||||||||||
Gains (Losses) on Available-For-Sale Securities | |||||||||||||||||||||||||||||||||||||||||
Available-For-Sale Securities | — | — | 47 | OTTI and realized gains on financial assets | |||||||||||||||||||||||||||||||||||||
Available-For-Sale Securities | — | — | (14 | ) | Gain (loss) on financial instruments, net | ||||||||||||||||||||||||||||||||||||
— | — | — | Income tax expense | ||||||||||||||||||||||||||||||||||||||
— | — | 33 | Net of tax | ||||||||||||||||||||||||||||||||||||||
Total reclassifications for the year | 17 | (72 | ) | 144 | |||||||||||||||||||||||||||||||||||||
Attributable to noncontrolling interest | (2 | ) | 5 | (11 | ) | ||||||||||||||||||||||||||||||||||||
Attributable to the Company’s stockholders | 15 | (67 | ) | 133 | |||||||||||||||||||||||||||||||||||||
Schedule of Noncontrolling Interest | ' | ||||||||||||||||||||||||||||||||||||||||
The noncontrolling interest was as follows: | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2010 | 910 | ||||||||||||||||||||||||||||||||||||||||
Business combination | 9 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (495 | ) | |||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivatives, net of tax | (10 | ) | |||||||||||||||||||||||||||||||||||||||
Other components of other comprehensive income (loss), net of tax | (16 | ) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (26 | ) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (521 | ) | |||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | (5 | ) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | 393 | ||||||||||||||||||||||||||||||||||||||||
Contribution of noncontrolling interest | 765 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
Net loss | (1,030 | ) | |||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivatives, net of tax | 10 | ||||||||||||||||||||||||||||||||||||||||
Other components of other comprehensive income (loss), net of tax | 6 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 16 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (1,014 | ) | |||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | (5 | ) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | 139 | ||||||||||||||||||||||||||||||||||||||||
Joint ventures deconsolidation | 73 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||
Net loss | (129 | ) | |||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivatives, net of tax | (3 | ) | |||||||||||||||||||||||||||||||||||||||
Other components of other comprehensive income (loss), net of tax | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (5 | ) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (134 | ) | |||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interest | (4 | ) | |||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | 74 | ||||||||||||||||||||||||||||||||||||||||
Supervisory Board [Member] | ' | ||||||||||||||||||||||||||||||||||||||||
Summary of Grants Under Outstanding Stock Award Plans | ' | ||||||||||||||||||||||||||||||||||||||||
The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: | |||||||||||||||||||||||||||||||||||||||||
Year of grant | Options granted and | Options waived at | |||||||||||||||||||||||||||||||||||||||
vested | grant | ||||||||||||||||||||||||||||||||||||||||
2005 | 66,000 | (15,000 | ) | ||||||||||||||||||||||||||||||||||||||
2006 | 66,000 | (15,000 | ) | ||||||||||||||||||||||||||||||||||||||
2007 | 165,000 | (22,500 | ) | ||||||||||||||||||||||||||||||||||||||
2008 | 165,000 | (22,500 | ) | ||||||||||||||||||||||||||||||||||||||
2009 | 165,000 | (7,500 | ) | ||||||||||||||||||||||||||||||||||||||
2010 | 172,500 | (7,500 | ) | ||||||||||||||||||||||||||||||||||||||
2011 | 172,500 | (30,000 | ) | ||||||||||||||||||||||||||||||||||||||
2012 | 180,000 | (22,500 | ) | ||||||||||||||||||||||||||||||||||||||
2013 | No options granted | ||||||||||||||||||||||||||||||||||||||||
Summary of Nonvested Share Activity | ' | ||||||||||||||||||||||||||||||||||||||||
A summary of the options’ activity by plan for the years ended December 31, 2012 and December 31, 2013 is presented below: | |||||||||||||||||||||||||||||||||||||||||
Year | Outstanding | Granted | Waived | Exercised | Expired/ | Outstanding | Exercised | Expired / | Outstanding | Shares | |||||||||||||||||||||||||||||||
of | as of | and | at grant | Cancelled | as of | Cancelled | as of | corresponding | |||||||||||||||||||||||||||||||||
grant | 31.12.2011 | vested | 31.12.2012 | 31.12.2013 | to exercised | ||||||||||||||||||||||||||||||||||||
option not yet | |||||||||||||||||||||||||||||||||||||||||
available for | |||||||||||||||||||||||||||||||||||||||||
trade as of | |||||||||||||||||||||||||||||||||||||||||
31.12.2013 | |||||||||||||||||||||||||||||||||||||||||
2005 | 34,115 | — | — | — | — | 34,115 | (3,000 | ) | — | 31,115 | — | ||||||||||||||||||||||||||||||
2006 | 33,000 | — | — | — | — | 33,000 | (3,000 | ) | — | 30,000 | — | ||||||||||||||||||||||||||||||
2007 | 82,500 | — | — | — | — | 82,500 | (22,500 | ) | — | 60,000 | — | ||||||||||||||||||||||||||||||
2008 | 85,000 | — | — | — | — | 85,000 | (10,000 | ) | — | 75,000 | — | ||||||||||||||||||||||||||||||
2009 | 95,000 | — | — | — | — | 95,000 | (20,000 | ) | — | 75,000 | — | ||||||||||||||||||||||||||||||
2010 | 107,500 | — | — | — | — | 107,500 | (25,000 | ) | — | 82,500 | — | ||||||||||||||||||||||||||||||
2011 | 142,500 | — | — | — | — | 142,500 | (25,000 | ) | — | 117,500 | — | ||||||||||||||||||||||||||||||
2012 | — | 180,000 | (22,500 | ) | — | — | 157,500 | (35,000 | ) | — | 122,500 | 10,000 | |||||||||||||||||||||||||||||
Employees [Member] | ' | ||||||||||||||||||||||||||||||||||||||||
Summary of Grants Under Outstanding Stock Award Plans | ' | ||||||||||||||||||||||||||||||||||||||||
The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: | |||||||||||||||||||||||||||||||||||||||||
Date of grant | Plan name | Number of | Number of | Number of shares | |||||||||||||||||||||||||||||||||||||
shares granted | shares waived | lost on | |||||||||||||||||||||||||||||||||||||||
performance | |||||||||||||||||||||||||||||||||||||||||
conditions | |||||||||||||||||||||||||||||||||||||||||
July 22, 2010 | 2010 Employee Plan | 6,344,725 | — | (2,076,448 | ) | ||||||||||||||||||||||||||||||||||||
December 17, 2010 | 2010 Employee Plan | 221,650 | — | (73,524 | ) | ||||||||||||||||||||||||||||||||||||
July 25, 2011 | 2011 Employee Plan | 5,881,630 | — | (5,824,445 | ) | ||||||||||||||||||||||||||||||||||||
November 14, 2011 | 2011 Employee Plan | 95,000 | — | (91,540 | ) | ||||||||||||||||||||||||||||||||||||
May 30, 2012 | 2012 CEO Special Bonus | 100,862 | — | — | |||||||||||||||||||||||||||||||||||||
July 23, 2012 | 2012 Employee Plan | 6,216,285 | (2,400 | ) | (1,991,558 | ) | |||||||||||||||||||||||||||||||||||
December 21, 2012 | 2012 Employee Plan | 304,480 | — | (100,373 | ) | ||||||||||||||||||||||||||||||||||||
July 22, 2013 | 2013 Employee Plan | 5,750,730 | — | (*) | |||||||||||||||||||||||||||||||||||||
December 18, 2013 | 2013 Employee Plan | 659,515 | — | (*) | |||||||||||||||||||||||||||||||||||||
December 27, 2013 | 2013 Employee Plan | 1,800 | — | — | |||||||||||||||||||||||||||||||||||||
(*) | As at December 31, 2013, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. | ||||||||||||||||||||||||||||||||||||||||
Summary of Nonvested Share Activity | ' | ||||||||||||||||||||||||||||||||||||||||
A summary of the unvested share activity by plan for the year ended December 31, 2013 is presented below: | |||||||||||||||||||||||||||||||||||||||||
Unvested Shares | Outstanding | Granted | Forfeited / | Cancelled on | Vested | Outstanding | |||||||||||||||||||||||||||||||||||
as at | waived | failed | as at | ||||||||||||||||||||||||||||||||||||||
December 31, | vesting | December 31, | |||||||||||||||||||||||||||||||||||||||
2012 | conditions | 2013 | |||||||||||||||||||||||||||||||||||||||
2010 Employee Plan | 1,485,836 | — | (21,180 | ) | — | (1,464,656 | ) | — | |||||||||||||||||||||||||||||||||
2012 CEO Special Bonus | 100,862 | — | — | — | (33,621 | ) | 67,241 | ||||||||||||||||||||||||||||||||||
2012 Employee Plan | 6,473,520 | — | (219,711 | ) | (2,091,931 | ) | (1,009,339 | ) | 3,152,539 | ||||||||||||||||||||||||||||||||
2013 Employee Plan | — | 6,412,045 | (30,280 | ) | — | (2,445 | ) | 6,379,320 | |||||||||||||||||||||||||||||||||
Total | 8,060,218 | 6,412,045 | (271,171 | ) | (2,091,931 | ) | (2,510,061 | ) | 9,599,100 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share (EPS), Basic and Diluted | ' | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, earnings per share (“EPS”) was calculated as follows: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Basic EPS | |||||||||||||
Net income (loss) attributable to parent company | (500 | ) | (1,158 | ) | 650 | ||||||||
Weighted average shares outstanding | 889,541,922 | 886,699,953 | 883,619,377 | ||||||||||
Basic EPS | (0.56 | ) | (1.31 | ) | 0.74 | ||||||||
Diluted EPS | |||||||||||||
Net income (loss) attributable to parent company | (500 | ) | (1,158 | ) | 650 | ||||||||
Convertible debt interest | — | — | 5 | ||||||||||
Net income (loss) attributable to parent company adjusted | (500 | ) | (1,158 | ) | 655 | ||||||||
Weighted average shares outstanding | 889,541,922 | 886,699,953 | 883,619,377 | ||||||||||
Dilutive effect of unvested shares | — | — | 3,771,729 | ||||||||||
Dilutive effect of convertible debt | — | — | 17,073,640 | ||||||||||
Number of shares used in calculating diluted EPS | 889,541,922 | 886,699,953 | 904,464,746 | ||||||||||
Diluted EPS | (0.56 | ) | (1.31 | ) | 0.72 |
Other_Income_and_Expenses_Net_
Other Income and Expenses, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Income and Expense, Net | ' | ||||||||||||
Other income and expenses, net consisted of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Research and development funding | 57 | 102 | 128 | ||||||||||
Phase-out and start-up costs | (4 | ) | — | (8 | ) | ||||||||
Exchange gain, net | 8 | 5 | 8 | ||||||||||
Patent costs | (40 | ) | (20 | ) | (28 | ) | |||||||
Gain on sale of businesses and non-current assets | 83 | 9 | 15 | ||||||||||
Other, net | (9 | ) | (5 | ) | (6 | ) | |||||||
Total | 95 | 91 | 109 | ||||||||||
Impairment_Restructuring_Charg1
Impairment, Restructuring Charges and Other Related Closure Costs (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of Impairment, Restructuring Charges and Other Related Closure Costs | ' | ||||||||||||||||||||||||||||||||
Impairment, restructuring charges and other related closure costs incurred in 2013, 2012, and 2011 are summarized as follows: | |||||||||||||||||||||||||||||||||
Year ended | Impairment | Restructuring | Other related | Total impairment, | |||||||||||||||||||||||||||||
December 31, 2013 | charges | closure costs | restructuring | ||||||||||||||||||||||||||||||
charges and other | |||||||||||||||||||||||||||||||||
related closure costs | |||||||||||||||||||||||||||||||||
ST-Ericsson restructuring plans | — | (6 | ) | (3 | ) | (9 | ) | ||||||||||||||||||||||||||
ST-Ericsson exit | (17 | ) | (69 | ) | — | (86 | ) | ||||||||||||||||||||||||||
Digital restructuring plan | (2 | ) | (1 | ) | (2 | ) | (5 | ) | |||||||||||||||||||||||||
$600-650 million net opex plan | — | (88 | ) | — | (88 | ) | |||||||||||||||||||||||||||
Manufacturing consolidation | (29 | ) | (8 | ) | — | (37 | ) | ||||||||||||||||||||||||||
Annual impairment test | (56 | ) | — | — | (56 | ) | |||||||||||||||||||||||||||
Assets held for sale impairment | (5 | ) | — | — | (5 | ) | |||||||||||||||||||||||||||
Other restructuring initiatives | — | (6 | ) | — | (6 | ) | |||||||||||||||||||||||||||
Total | (109 | ) | (178 | ) | (5 | ) | (292 | ) | |||||||||||||||||||||||||
Year ended | Impairment | Restructuring | Other related | Total impairment, | |||||||||||||||||||||||||||||
December 31, 2012 | charges | closure costs | restructuring | ||||||||||||||||||||||||||||||
charges and other | |||||||||||||||||||||||||||||||||
related closure costs | |||||||||||||||||||||||||||||||||
Manufacturing restructuring plan | (21 | ) | — | (2 | ) | (23 | ) | ||||||||||||||||||||||||||
ST-Ericsson restructuring plan | — | (1 | ) | — | (1 | ) | |||||||||||||||||||||||||||
ST-Ericsson cost savings plan | — | (10 | ) | (10 | ) | (20 | ) | ||||||||||||||||||||||||||
ST-Ericsson April 2012 restructuring plan | (2 | ) | (60 | ) | (4 | ) | (66 | ) | |||||||||||||||||||||||||
ST-Ericsson exit | (544 | ) | — | — | (544 | ) | |||||||||||||||||||||||||||
Digital restructuring plan | (7 | ) | (13 | ) | — | (20 | ) | ||||||||||||||||||||||||||
Annual impairment test | (694 | ) | — | — | (694 | ) | |||||||||||||||||||||||||||
Other restructuring initiatives | — | — | (8 | ) | (8 | ) | |||||||||||||||||||||||||||
Total | (1,268 | ) | (84 | ) | (24 | ) | (1,376 | ) | |||||||||||||||||||||||||
Year ended | Impairment | Restructuring | Other related | Total impairment, | |||||||||||||||||||||||||||||
December 31, 2011 | charges | closure costs | restructuring | ||||||||||||||||||||||||||||||
charges and other | |||||||||||||||||||||||||||||||||
related closure costs | |||||||||||||||||||||||||||||||||
Manufacturing restructuring plan | (3 | ) | (13 | ) | (21 | ) | (37 | ) | |||||||||||||||||||||||||
ST-Ericsson restructuring plan | (1 | ) | (3 | ) | (3 | ) | (7 | ) | |||||||||||||||||||||||||
ST-Ericsson cost savings plan | — | (26 | ) | — | (26 | ) | |||||||||||||||||||||||||||
Other restructuring initiatives | — | (1 | ) | (4 | ) | (5 | ) | ||||||||||||||||||||||||||
Total | (4 | ) | (43 | ) | (28 | ) | (75 | ) | |||||||||||||||||||||||||
Changes to Restructuring Provisions Recorded on Consolidated Balance Sheets | ' | ||||||||||||||||||||||||||||||||
Changes to the restructuring provisions recorded on the consolidated balance sheets from December 31, 2011 to December 31, 2013 are summarized as follows: | |||||||||||||||||||||||||||||||||
ST-Ericsson | ST-Ericsson | $600-650 | Digital | Manufacturing | Manufacturing | Other | Total | ||||||||||||||||||||||||||
exit | restructuring | million | restructuring | Restructuring | consolidation | restructuring | |||||||||||||||||||||||||||
plans | net opex | plan | plan | initiatives | |||||||||||||||||||||||||||||
plan | |||||||||||||||||||||||||||||||||
Provision as at December 31, 2011 | — | 36 | — | — | 4 | — | 13 | 53 | |||||||||||||||||||||||||
Charges incurred in 2012 | 8 | 96 | — | 13 | 2 | — | 3 | 122 | |||||||||||||||||||||||||
Adjustments for unused provisions | — | (11 | ) | — | — | — | — | (3 | ) | (14 | ) | ||||||||||||||||||||||
Amounts paid | — | (65 | ) | — | (1 | ) | (3 | ) | — | (4 | ) | (73 | ) | ||||||||||||||||||||
Currency translation effect | — | 3 | — | — | — | — | -3 | ||||||||||||||||||||||||||
Provision as at December 31, 2012 | 8 | 59 | — | 12 | 3 | — | 9 | 91 | |||||||||||||||||||||||||
Charges incurred in 2013 | 100 | 12 | 88 | 3 | — | 8 | 6 | 217 | |||||||||||||||||||||||||
Adjustments for unused provisions | (31 | ) | (3 | ) | — | — | — | — | — | (34 | ) | ||||||||||||||||||||||
Amounts paid | (30 | ) | (56 | ) | (44 | ) | (9 | ) | (1 | ) | — | (7 | ) | (147 | ) | ||||||||||||||||||
Currency translation effect | (1 | ) | — | 2 | — | — | — | — | 1 | ||||||||||||||||||||||||
ST-Ericsson break-up and deconsolidation | (46 | ) | (12 | ) | — | — | — | — | 6 | (52 | ) | ||||||||||||||||||||||
Provision as at December 31, 2013 | — | — | 46 | 6 | 2 | 8 | 14 | 76 |
Interest_Expense_Net_Tables
Interest Expense, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Banking And Thrift Interest [Abstract] | ' | ||||||||||||
Interest Expense, Net Consisted | ' | ||||||||||||
Interest expense, net consisted of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income | 18 | 41 | 21 | ||||||||||
Expense | (23 | ) | (76 | ) | (46 | ) | |||||||
Total | (5 | ) | (35 | ) | (25 | ) | |||||||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income (Loss) before Income Tax | ' | ||||||||||||
Income (loss) before income tax is comprised of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income (loss) recorded in The Netherlands | (30 | ) | (33 | ) | 54 | ||||||||
Income (loss) from foreign operations | (562 | ) | (2,104 | ) | 282 | ||||||||
Income (loss) before income tax benefit (expense) | (592 | ) | (2,137 | ) | 336 | ||||||||
Income Tax Benefit (Expense) | ' | ||||||||||||
Income tax benefit (expense) is comprised of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
The Netherlands taxes – current | 5 | (1 | ) | (11 | ) | ||||||||
Foreign taxes – current | (90 | ) | (130 | ) | (104 | ) | |||||||
Current taxes | (85 | ) | (131 | ) | (115 | ) | |||||||
The Netherlands taxes – deferred | — | — | (2 | ) | |||||||||
Foreign taxes – deferred | 48 | 80 | (64 | ) | |||||||||
Income tax benefit (expense) | (37 | ) | (51 | ) | (181 | ) | |||||||
Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate | ' | ||||||||||||
The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2013, 2012 and 2011, and the effective income tax rate are the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax benefit (expense) computed at statutory rate | 148 | 534 | (84 | ) | |||||||||
Non-deductible, non-taxable and other permanent differences, net | (2 | ) | (81 | ) | (2 | ) | |||||||
Income (loss) on equity-method investments | (31 | ) | (6 | ) | (7 | ) | |||||||
Valuation allowance adjustments | (83 | ) | (197 | ) | (130 | ) | |||||||
Current year credits | 60 | 77 | 94 | ||||||||||
Other tax and credits | (42 | ) | (17 | ) | (32 | ) | |||||||
Benefits from tax holidays | 18 | 38 | 113 | ||||||||||
Impact of uncertain tax positions | (33 | ) | (83 | ) | (2 | ) | |||||||
Earnings of subsidiaries taxed at different rates | (72 | ) | (316 | ) | (131 | ) | |||||||
Income tax benefit (expense) | (37 | ) | (51 | ) | (181 | ) | |||||||
Deferred Tax Assets and Liabilities | ' | ||||||||||||
Deferred tax assets and liabilities consisted of the following: | |||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Tax loss carryforwards and investment credits | 658 | 820 | |||||||||||
Less unrecognized tax benefit | (229 | ) | |||||||||||
Tax loss carryforward net of unrecognized tax benefit | 429 | 820 | |||||||||||
Inventory valuation | 14 | 24 | |||||||||||
Impairment and restructuring charges | 63 | 61 | |||||||||||
Fixed asset depreciation in arrears | 58 | 75 | |||||||||||
Capitalized development costs | 45 | ||||||||||||
Receivables for government funding | 22 | 15 | |||||||||||
Tax credits granted on past capital investments | 1,131 | 1,114 | |||||||||||
Pension service costs | 66 | 97 | |||||||||||
Stock awards | 2 | — | |||||||||||
Commercial accruals | 10 | 10 | |||||||||||
Other temporary differences | 70 | 98 | |||||||||||
Total deferred tax assets | 1,910 | 2,314 | |||||||||||
Valuation allowances | (1,454 | ) | (1,634 | ) | |||||||||
Deferred tax assets, net | 456 | 680 | |||||||||||
Accelerated fixed asset depreciation | (58 | ) | (64 | ) | |||||||||
Acquired intangible assets | (11 | ) | (30 | ) | |||||||||
Advances of government funding | (35 | ) | (26 | ) | |||||||||
Other temporary differences | (13 | ) | (34 | ) | |||||||||
Deferred tax liabilities | (117 | ) | (154 | ) | |||||||||
Net deferred income tax asset | 339 | 526 | |||||||||||
Gross Deferred Tax Assets on Tax Loss Carryforwards and Investment Credits Expiration | ' | ||||||||||||
As of December 31, 2013, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2014, as follows: | |||||||||||||
Year | |||||||||||||
2014 | 8 | ||||||||||||
2015 | 22 | ||||||||||||
2016 | 19 | ||||||||||||
2017 | 15 | ||||||||||||
2018 | 13 | ||||||||||||
Thereafter | 581 | ||||||||||||
Total | 658 | ||||||||||||
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of 2013, 2012 and 2011 beginning and ending amounts of unrecognized tax benefits is as follows: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | 227 | 148 | 149 | ||||||||||
Additions based on tax positions related to the current year | 52 | 44 | 36 | ||||||||||
Additions for tax positions of prior years | 27 | 39 | 19 | ||||||||||
Reduction for tax positions of prior years | (48 | ) | — | (3 | ) | ||||||||
Reduction for lapse of statute of limitations | (50 | ) | |||||||||||
Reduction due to ST-Ericsson deconsolidation | (8 | ) | — | — | |||||||||
Settlements | — | (1 | ) | — | |||||||||
Prepayment | (1 | ) | (6 | ) | |||||||||
Foreign currency translation | 6 | 3 | (3 | ) | |||||||||
Balance at end of year | 255 | 227 | 148 |
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Company's Commitments | ' | ||||||||||||||||||||||||||||
The Company’s commitments as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||
In millions of U.S. dollars | Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||
Operating leases | 242 | 54 | 37 | 29 | 26 | 22 | 74 | ||||||||||||||||||||||
Purchase obligations | 434 | 383 | 48 | 3 | — | — | — | ||||||||||||||||||||||
of which: | |||||||||||||||||||||||||||||
Equipment purchase | 163 | 163 | — | — | — | — | — | ||||||||||||||||||||||
Foundry purchase | 92 | 92 | — | — | — | — | — | ||||||||||||||||||||||
Software, design, technologies and licenses | 179 | 128 | 48 | 3 | — | — | — | ||||||||||||||||||||||
Other obligations | 481 | 155 | 120 | 100 | 80 | 24 | 2 | ||||||||||||||||||||||
Total | 1,157 | 592 | 205 | 132 | 106 | 46 | 76 | ||||||||||||||||||||||
Financial_Instruments_and_Risk1
Financial Instruments and Risk Management (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Notional Amounts of Outstanding Derivative Instruments | ' | ||||||||||||||||||||||||
As at December 31, 2013, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated and Singapore dollar-denominated forecasted transactions: | |||||||||||||||||||||||||
In millions of Euros | Notional amount for hedge on forecasted R&D and other operating expenses | Notional amount for hedge on forecasted manufacturing costs | |||||||||||||||||||||||
Forward contracts | 187 | 207 | |||||||||||||||||||||||
Currency options | 49 | 105 | |||||||||||||||||||||||
Currency collars | 253 | 348 | |||||||||||||||||||||||
In millions of Singapore dollars | Notional amount for hedge on forecasted R&D and other operating expenses | Notional amount for hedge on forecasted manufacturing costs | |||||||||||||||||||||||
Forward contracts | — | 149 | |||||||||||||||||||||||
Fair Value of Derivative Instruments | ' | ||||||||||||||||||||||||
Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2013 and December 31, 2012 is presented in the table below: | |||||||||||||||||||||||||
In millions of U.S. dollars | As at December 31, 2013 | As at December 31, 2012 | |||||||||||||||||||||||
Asset Derivatives | Balance sheet | Fair value | Balance sheet | Fair value | |||||||||||||||||||||
location | location | ||||||||||||||||||||||||
Derivatives designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | 26 | Other current assets | 21 | |||||||||||||||||||||
Currency collars | Other current assets | 10 | Other current assets | 8 | |||||||||||||||||||||
Currency options | Other current assets | 5 | Other current assets | — | |||||||||||||||||||||
Total derivatives designated as a hedge | 41 | 29 | |||||||||||||||||||||||
Derivatives not designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | 2 | Other current assets | 7 | |||||||||||||||||||||
Total derivatives not designated as a hedge: | 2 | 7 | |||||||||||||||||||||||
Total Derivatives | 43 | 36 | |||||||||||||||||||||||
In millions of U.S. dollars | As at December 31, 2013 | As at December 31, 2012 | |||||||||||||||||||||||
Liability Derivatives | Balance sheet | Fair value | Balance sheet | Fair value | |||||||||||||||||||||
location | location | ||||||||||||||||||||||||
Derivatives designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other payables and accrued liabilities | (1 | ) | Other payables and accrued liabilities | — | ||||||||||||||||||||
Currency collars | Other payables and accrued liabilities | (2 | ) | ||||||||||||||||||||||
Total derivatives designated as a hedge | (3 | ) | — | ||||||||||||||||||||||
Derivatives not designated as a hedge: | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other payables and accrued liabilities | (1 | ) | Other payables and accrued liabilities | (1 | ) | |||||||||||||||||||
Total derivatives not designated as a hedge: | (1 | ) | (1 | ) | |||||||||||||||||||||
(4 | ) | ||||||||||||||||||||||||
Total Derivatives | (1 | ) | |||||||||||||||||||||||
Effect on Consolidated Statements of Income of Derivative Instruments | ' | ||||||||||||||||||||||||
The effect on the consolidated statements of income for the year ended December 31, 2013 and December 31, 2012 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the statements of equity as at December 31, 2013 and December 31, 2012 of derivative instruments designated as cash flow hedge is presented in the table below: | |||||||||||||||||||||||||
In millions of U.S. dollars | Gain (loss) deferred in | Location of gain (loss) | Gain (loss) reclassified from OCI into | ||||||||||||||||||||||
OCI on derivative | reclassified from OCI into | earnings | |||||||||||||||||||||||
earnings | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Foreign exchange forward contracts | 14 | 11 | Cost of sales | 13 | (25 | ) | |||||||||||||||||||
Foreign exchange forward contracts | 2 | 1 | Selling, general and administrative | 2 | (2 | ) | |||||||||||||||||||
Foreign exchange forward contracts | 10 | 9 | Research and development | 13 | (18 | ) | |||||||||||||||||||
Currency options | 1 | — | Cost of sales | — | (1 | ) | |||||||||||||||||||
Currency options | 1 | — | Research and development | — | (1 | ) | |||||||||||||||||||
Currency collars | 6 | 5 | Cost of sales | 3 | (13 | ) | |||||||||||||||||||
Currency collars | 1 | 1 | Selling, general and administrative | 1 | (3 | ) | |||||||||||||||||||
Currency collars | 3 | 2 | Research and development | 1 | (8 | ) | |||||||||||||||||||
Total | 38 | 29 | 33 | (71 | ) | ||||||||||||||||||||
Derivative Instruments Designated as Cash Flow Hedge | ' | ||||||||||||||||||||||||
The effect on the consolidated statements of income for the year ended December 31, 2013 and December 31, 2012 of derivative instruments not designated as a hedge is presented in the table below: | |||||||||||||||||||||||||
In millions of U.S. dollars | Location of gain recognized in earnings | Gain recognized in earnings | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Foreign exchange forward contracts | Other income and expenses, net | 10 | 20 | ||||||||||||||||||||||
Total | 10 | 20 | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedge | ' | ||||||||||||||||||||||||
The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2013: | |||||||||||||||||||||||||
Fair Value Measurements using | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Description | December 31, | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
In millions of U.S. dollars | |||||||||||||||||||||||||
Euro-denominated Senior debt Floating Rate Notes issued by financial institutions | 27 | 27 | — | — | |||||||||||||||||||||
U.S.-denominated Senior debt Floating Rate Notes issued by financial institutions | 30 | 30 | — | — | |||||||||||||||||||||
Equity securities classified as available-for-sale | 11 | 11 | — | — | |||||||||||||||||||||
Equity securities classified as held-for-trading | 8 | 8 | — | — | |||||||||||||||||||||
Derivative instruments designated as cash flow hedge | 38 | — | 38 | — | |||||||||||||||||||||
Derivative instruments not designated as a hedge | 1 | — | 1 | — | |||||||||||||||||||||
Total | 115 | 76 | 39 | — | |||||||||||||||||||||
The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2012: | |||||||||||||||||||||||||
Fair Value Measurements using | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Description | December 31, | ||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
In millions of U.S. dollars | |||||||||||||||||||||||||
Debt securities issued by the U.S. Treasury | 150 | 150 | — | — | |||||||||||||||||||||
Euro-denominated Senior debt Floating Rate Notes issued by financial institutions | 59 | 59 | — | — | |||||||||||||||||||||
U.S.-denominated Senior debt Floating Rate Notes issued by financial institutions | 29 | 29 | — | — | |||||||||||||||||||||
Equity securities classified as available-for-sale | 10 | 10 | — | — | |||||||||||||||||||||
Equity securities classified as held-for-trading | 8 | 8 | — | — | |||||||||||||||||||||
Derivative instruments designated as cash flow hedge | 29 | — | 29 | — | |||||||||||||||||||||
Derivative instruments not designated as a hedge | 6 | — | 6 | — | |||||||||||||||||||||
Total | 291 | 256 | 35 | — | |||||||||||||||||||||
Schedule of Assets (Liabilities) Measured at Fair Value on Non-Recurring Basis | ' | ||||||||||||||||||||||||
The table below details assets (liabilities) measured at fair value on a non-recurring basis as at December 31, 2013: | |||||||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||||||
In millions of U.S. dollars | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Description | December 31, | ||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Assets held for sale | 16 | — | — | 16 | |||||||||||||||||||||
Total | |||||||||||||||||||||||||
Schedule of Assets (Liabilities) Measured at Fair Value on Non-Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||||||
For assets (liabilities) measured at fair value on a non-recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2013 and December 31, 2013 is presented as follows: | |||||||||||||||||||||||||
In millions of U.S. dollars | Fair Value | ||||||||||||||||||||||||
Measurements | |||||||||||||||||||||||||
using Significant | |||||||||||||||||||||||||
Unobservable | |||||||||||||||||||||||||
Inputs (Level 3) | |||||||||||||||||||||||||
January 1, 2013 | — | ||||||||||||||||||||||||
Assets held for sale | 11 | ||||||||||||||||||||||||
Sale of assets | (5 | ) | |||||||||||||||||||||||
Deconsolidation of assets | (6 | ) | |||||||||||||||||||||||
Veredus asset group | 16 | ||||||||||||||||||||||||
December 31, 2013 | 16 | ||||||||||||||||||||||||
Amount of total losses for the period included in earnings attributable to assets still held at the reporting date | (5 | ) | |||||||||||||||||||||||
Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost | ' | ||||||||||||||||||||||||
The following table includes additional fair value information on financial assets and liabilities as at December 31, 2013 and 2012: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Description | Level | Carrying | Estimated Fair | Carrying | Estimated Fair | ||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||
In millions of U.S. dollars | |||||||||||||||||||||||||
Cash and cash equivalents | 1 | 1,836 | 1,836 | 2,250 | 2,250 | ||||||||||||||||||||
Long-term debt | 1,153 | 1,153 | 1,301 | 1,301 | |||||||||||||||||||||
- Bank loans (including current portion) | 2 | 1,153 | 1,153 | 839 | 839 | ||||||||||||||||||||
- Senior Bonds | 2 | — | — | 462 | 462 | ||||||||||||||||||||
Details of Securities that Currently are in Unrealized Loss Position | ' | ||||||||||||||||||||||||
The table below details securities that were in an unrealized loss position as at December 31, 2012. The securities are segregated by investment type and the length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2012. | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Less than 12 months | More than 12 months | Total | |||||||||||||||||||||||
Description | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Values | Losses | Values | Losses | Values | Losses | ||||||||||||||||||||
Senior debt floating rate notes | — | — | 88 | (1 | ) | 88 | (1 | ) | |||||||||||||||||
Total | — | — | 88 | (1 | ) | 88 | (1 | ) | |||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Transactions with Significant Shareholders, their Affiliates and Other Related Parties | ' | ||||||||||||
Transactions with significant shareholders, their affiliates and other related parties were as follows: | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales & other services | 118 | 226 | 269 | ||||||||||
Research and development expenses | (121 | ) | (282 | ) | (235 | ) | |||||||
Other purchases | (71 | ) | (53 | ) | (60 | ) | |||||||
Accounts receivable | 12 | 53 | 54 | ||||||||||
Accounts payable | 82 | 62 | 42 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Net Revenues by Product Segment | ' | ||||||||||||
Net revenues by product segment: | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
Sense & Power and Automotive Products (SP&A) | 4,775 | 4,622 | 5,120 | ||||||||||
Embedded Processing Solutions (EPS) | 3,269 | 3,826 | 4,566 | ||||||||||
Others(1) | 38 | 45 | 49 | ||||||||||
Total consolidated net revenues | 8,082 | 8,493 | 9,735 | ||||||||||
-1 | Includes revenues from sales of Subsystems, sales of materials and other products not allocated to product segments. | ||||||||||||
Net Revenues by Product Segment and by Product Lines | ' | ||||||||||||
Net revenues by product segment and by product line : | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
In millions of U.S. dollars | |||||||||||||
Automotive (APG) | 1,668 | 1,554 | 1,678 | ||||||||||
Industrial & Power Discrete (IPD) | 1,801 | 1,747 | 2,104 | ||||||||||
Analog & MEMS (AMS) | 1,306 | 1,320 | 1,335 | ||||||||||
Other SP&A | — | 1 | 3 | ||||||||||
Sense & Power and Automotive Products (SP&A) | 4,775 | 4,622 | 5,120 | ||||||||||
Digital Convergence Group (DCG) | 735 | 888 | 1,084 | ||||||||||
Imaging, Bi-CMOS ASIC and Silicon Photonics (IBP) | 462 | 437 | 722 | ||||||||||
Microcontrollers, Memory & Security (MMS) | 1,367 | 1,147 | 1,175 | ||||||||||
Wireless (WPS) | 704 | 1,345 | 1,552 | ||||||||||
Other EPS | 1 | 9 | 33 | ||||||||||
Embedded Processing Solutions (EPS) | 3,269 | 3,826 | 4,566 | ||||||||||
Others | 38 | 45 | 49 | ||||||||||
Total consolidated net revenues | 8,082 | 8,493 | 9,735 | ||||||||||
Operating Income (Loss) by Product Segment | ' | ||||||||||||
Operating income (loss) by product segment: | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
Sense & Power and Automotive Products (SP&A) | 270 | 409 | 757 | ||||||||||
Embedded Processing Solutions (EPS) | (399 | ) | (883 | ) | (489 | ) | |||||||
Total operating income (loss) of product segments | (129 | ) | (474 | ) | 268 | ||||||||
Others (1) | (336 | ) | (1,607 | ) | (222 | ) | |||||||
Total consolidated operating income (loss) | (465 | ) | (2,081 | ) | 46 | ||||||||
-1 | Operating loss of “Others” includes items such as impairment, restructuring charges and other related closure costs including ST-Ericsson plans, unused capacity charges, phase-out and start-up costs of certain manufacturing facilities, certain one-time corporate items such as the 2012 NXP arbitration award charge and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses and other costs that are not allocated to the product segments, as well as operating earnings of the Subsystems and Other Products Group. | ||||||||||||
Reconciliation of Operating Income (Loss) of Segments to Total Operating Income (Loss) | ' | ||||||||||||
Reconciliation of operating income (loss) of segments to the total operating income (loss): | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
Total operating income (loss) of product segments | (129 | ) | (474 | ) | 268 | ||||||||
Strategic and other research and development programs | (15 | ) | (12 | ) | (13 | ) | |||||||
Phase-out and start-up costs | (5 | ) | — | (8 | ) | ||||||||
Impairment, restructuring charges and other related closure costs | (292 | ) | (1,376 | ) | (75 | ) | |||||||
Unused capacity charges | (32 | ) | (172 | ) | (149 | ) | |||||||
NXP arbitration award | — | (54 | ) | — | |||||||||
Other non-allocated provisions(1) | 8 | 7 | 23 | ||||||||||
Total operating loss Others | (336 | ) | (1,607 | ) | (222 | ) | |||||||
Total consolidated operating income (loss) | (465 | ) | (2,081 | ) | 46 | ||||||||
-1 | Includes unallocated income and expenses such as certain corporate-level operating expenses and other costs/income that are not allocated to the product segments. | ||||||||||||
Net Revenues | ' | ||||||||||||
Net revenues | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||||
The Netherlands | 1,860 | 1,524 | 1,928 | ||||||||||
France | 289 | 189 | 172 | ||||||||||
Italy | 78 | 131 | 157 | ||||||||||
USA | 1,041 | 1,014 | 1,120 | ||||||||||
Singapore | 3,860 | 3,784 | 4,945 | ||||||||||
Japan | 420 | 418 | 497 | ||||||||||
Other countries | 534 | 1,433 | 916 | ||||||||||
Total | 8,082 | 8,493 | 9,735 | ||||||||||
Property, Plant & Equipment | ' | ||||||||||||
Property, plant and equipment | |||||||||||||
In millions of U.S. dollars | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
The Netherlands | 333 | 241 | |||||||||||
France | 1,063 | 1,222 | |||||||||||
Italy | 690 | 716 | |||||||||||
Other European countries | 131 | 169 | |||||||||||
USA | 17 | 18 | |||||||||||
Singapore | 341 | 441 | |||||||||||
Malaysia | 195 | 238 | |||||||||||
Other countries | 386 | 436 | |||||||||||
Total | 3,156 | 3,481 | |||||||||||
Accounting_Policies_Additional
Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Jurisdictions | |||
Summary Of Accounting Policies [Line Items] | ' | ' | ' |
Cumulative probability threshold for realization of income tax benefits | 50.00% | ' | ' |
Minimum recognizable tax benefit | 50.00% | ' | ' |
Sustainability threshold for uncertain tax position | 50.00% | ' | ' |
Advertising expenses | $11 | $12 | $12 |
Unrecognized tax benefits | $229 | ' | ' |
Number of tax jurisdictions | 4 | ' | ' |
Minimum [Member] | ' | ' | ' |
Summary Of Accounting Policies [Line Items] | ' | ' | ' |
Equity investments, Ownership percentage | 20.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Summary Of Accounting Policies [Line Items] | ' | ' | ' |
Equity investments, Ownership percentage | 50.00% | ' | ' |
Capitalized Software [Member] | ' | ' | ' |
Summary Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets, maximum | '4 years | ' | ' |
Trademarks and Licenses [Member] | Minimum [Member] | ' | ' | ' |
Summary Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets, maximum | '3 years | ' | ' |
Trademarks and Licenses [Member] | Maximum [Member] | ' | ' | ' |
Summary Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets, maximum | '7 years | ' | ' |
Accounting_Policies_Schedule_o
Accounting Policies - Schedule of Property, Plant and Equipment Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '33 years |
Facilities and Leasehold Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '5 years |
Facilities and Leasehold Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '10 years |
Machinery and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '3 years |
Machinery and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '10 years |
Computer and R&D Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '3 years |
Computer and R&D Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '6 years |
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '2 years |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of Property, Plant and Equipment, Average | '5 years |
Accounting_Policies_Actual_and
Accounting Policies - Actual and Past Revenues for Multiple Deliverable Arrangements (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Licenses and process documentation | ' | $9 | $56 |
Training and support services | 2 | 9 | 14 |
Total Revenues under Multiple Deliverable Arrangements | $2 | $18 | $70 |
Marketable_Securities_Changes_
Marketable Securities - Changes in Value of Marketable Securities Reported in Current and Non-Current Assets on Consolidated Balance Sheets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Beginning Balance | $238 | $413 | ' |
Amount invested in French, German, Italian and U.S. government bonds | ' | 450 | 352 |
Sale | -184 | -630 | -818 |
Change in fair value included in OCI for available-for-sale marketable securities | ' | 6 | ' |
Change in fair value recognized in earnings | ' | 1 | ' |
Foreign exchange result through OCI | 3 | -2 | ' |
Ending Balance | 57 | 238 | 413 |
Debt Securities Issued by the U.S. Treasury [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Beginning Balance | 150 | 100 | ' |
Amount invested in French, German, Italian and U.S. government bonds | ' | 450 | ' |
Sale | -150 | -400 | ' |
Change in fair value included in OCI for available-for-sale marketable securities | ' | ' | ' |
Change in fair value recognized in earnings | ' | ' | ' |
Foreign exchange result through OCI | ' | ' | ' |
Ending Balance | ' | 150 | ' |
Debt Securities Issued by Foreign Governments [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Beginning Balance | ' | 81 | ' |
Amount invested in French, German, Italian and U.S. government bonds | ' | ' | ' |
Sale | ' | -81 | ' |
Change in fair value included in OCI for available-for-sale marketable securities | ' | ' | ' |
Change in fair value recognized in earnings | ' | ' | ' |
Foreign exchange result through OCI | ' | ' | ' |
Ending Balance | ' | ' | ' |
Fixed Rate Debt Securities Issued by Financial Institutions [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Beginning Balance | ' | 27 | ' |
Amount invested in French, German, Italian and U.S. government bonds | ' | ' | ' |
Sale | ' | -25 | ' |
Change in fair value included in OCI for available-for-sale marketable securities | ' | ' | ' |
Change in fair value recognized in earnings | ' | ' | ' |
Foreign exchange result through OCI | ' | -2 | ' |
Ending Balance | ' | ' | ' |
Senior debt Floating Rate Notes issued by financial institutions [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Beginning Balance | 88 | 205 | ' |
Amount invested in French, German, Italian and U.S. government bonds | ' | ' | ' |
Sale | -34 | -124 | ' |
Change in fair value included in OCI for available-for-sale marketable securities | ' | 6 | ' |
Change in fair value recognized in earnings | ' | 1 | ' |
Foreign exchange result through OCI | 3 | ' | ' |
Ending Balance | $57 | $88 | ' |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | EUR (€) | Moody's, Aaa Rating [Member] | |
Y | USD ($) | ||||
Investment | |||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' |
U.S. Treasury Bills | $57 | $238 | $413 | ' | $150 |
Investment positions in floating-rate notes | 2 | ' | ' | ' | ' |
Duration of the floating rate note portfolio | 0.05 | ' | ' | ' | ' |
Aggregate amortized cost basis of securities | 57 | 89 | ' | ' | ' |
Senior unsecured bonds issued | ' | ' | 5 | ' | ' |
Original investment of senior unsecured bonds | ' | ' | ' | 15 | ' |
Cash proceeds from sale of senior unsecured bonds | ' | $5 | ' | ' | ' |
Trade_Accounts_Receivable_Net_1
Trade Accounts Receivable, Net - Trade Accounts Receivable, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Trade accounts receivable | $1,058 | $1,015 |
Allowance for doubtful accounts | -9 | -10 |
Total | $1,049 | $1,005 |
Trade_Accounts_Receivable_Net_2
Trade Accounts Receivable, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Customer | Customer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Trade accounts receivable, bad debt expense | $2 | $1 | $1 |
Share of companies in consolidated net revenues | 10.00% | 10.00% | ' |
Number of customer | 0 | 0 | ' |
Receivables sold without recourse | 56 | 127 | ' |
Factoring transactions | 570 | 1,143 | ' |
Financial cost of factored amount | $2 | $4 | $3 |
Nokia Group of Companies [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Share of companies in consolidated net revenues | ' | ' | 10.40% |
Number of customer | ' | ' | 1 |
Inventories_Inventories_Net_of
Inventories - Inventories, Net of Reserve (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $84 | $78 |
Work-in-process | 885 | 941 |
Finished products | 367 | 334 |
Total | $1,336 | $1,353 |
Other_Current_Assets_Other_Cur
Other Current Assets - Other Current Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Receivables from government agencies | $127 | $156 |
Taxes and other government receivables | 56 | 68 |
Advances | 46 | 84 |
Prepayments | 54 | 74 |
Loans and deposits | 13 | 15 |
Interest receivable | 1 | 1 |
Derivative instruments | 43 | 36 |
Receivables from equity-method investments | 8 | 16 |
Other current assets | 41 | 68 |
Total | $389 | $518 |
Goodwill_Changes_in_Carrying_A
Goodwill - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | $141 | $1,059 |
Sale of business | ' | -5 | ' |
Business Combinations | ' | ' | 1 |
Re-classification to AHFS | ' | -10 | ' |
Foreign currency translation | ' | 2 | 3 |
Impairment loss | -38 | -38 | -922 |
Goodwill, Ending Balance | ' | 90 | 141 |
Sense & Power and Automotive Products (SP&A) [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | 12 | 11 |
Business Combinations | ' | ' | 1 |
Re-classification to AHFS | ' | -10 | ' |
Goodwill, Ending Balance | ' | 2 | 12 |
Embedded Processing Solutions (EPS) [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | 124 | 1,043 |
Foreign currency translation | ' | 2 | 3 |
Impairment loss | ' | -38 | -922 |
Goodwill, Ending Balance | ' | 88 | 124 |
Others [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | 5 | 5 |
Sale of business | ' | -5 | ' |
Foreign currency translation | ' | ' | ' |
Goodwill, Ending Balance | ' | ' | $5 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 13, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Veredus [Member] | Subsequent Event [Member] | Wireless Segment (Other) [Member] | Embedded Processing Solutions (EPS) [Member] | Embedded Processing Solutions (EPS) [Member] | Others [Member] | Others [Member] | ||||
Veredus [Member] | ||||||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated impairment losses, net | ' | $1,024 | $986 | ' | ' | $922 | $1,018 | $980 | $6 | $6 |
Impairment loss of goodwill | 38 | 38 | 922 | ' | ' | ' | 38 | 922 | ' | ' |
Impairment loss of intangible assets | 18 | 18 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investments, Ownership percentage | ' | ' | ' | 67.00% | ' | ' | ' | ' | ' | ' |
Re-classification to AHFS | ' | $10 | ' | $10 | ' | ' | ' | ' | ' | ' |
Sale of equity interest, percentage | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Other_Intangible_Assets_Other_
Other Intangible Assets - Other Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Cost | $1,058 | $1,254 |
Accumulated Amortization | -841 | -1,041 |
Net Cost | 217 | 213 |
Technologies & Licences [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Cost | 616 | 742 |
Accumulated Amortization | -484 | -630 |
Net Cost | 132 | 112 |
Contractual Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Cost | 5 | 13 |
Accumulated Amortization | -5 | -11 |
Net Cost | ' | 2 |
Capitalized Software [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Cost | 338 | 356 |
Accumulated Amortization | -290 | -312 |
Net Cost | 48 | 44 |
Construction in Progress [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Cost | 37 | 39 |
Accumulated Amortization | ' | ' |
Net Cost | 37 | 39 |
Other Intangible Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Cost | 62 | 104 |
Accumulated Amortization | -62 | -88 |
Net Cost | ' | $16 |
Other_Intangible_Assets_Additi
Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 13, 2014 |
Acquired Technologies [Member] | Capitalized Software [Member] | Veredus [Member] | Subsequent Event [Member] | |||||
Veredus [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense on capitalized software costs | ' | $17 | $38 | $33 | ' | ' | ' | ' |
Impairment loss of intangible assets | 18 | 18 | ' | ' | 17 | 1 | ' | ' |
Equity investments, Ownership percentage | ' | ' | ' | ' | ' | ' | 67.00% | ' |
Re-classification to AHFS | ' | ' | ' | ' | ' | ' | 11 | ' |
Sale of equity interest, percentage | ' | ' | ' | ' | ' | ' | ' | 50.00% |
Amortization expense | ' | $72 | $177 | $211 | ' | ' | ' | ' |
Other_Intangible_Assets_Estima
Other Intangible Assets - Estimated Amortization Expense of Existing Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $64 | ' |
2015 | 55 | ' |
2016 | 45 | ' |
2017 | 26 | ' |
2018 | 13 | ' |
Thereafter | 14 | ' |
Net Cost | $217 | $213 |
Property_Plant_and_Equipment_P
Property, Plant and Equipment - Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | $19,674 | $19,484 |
Accumulated Depreciation | -16,518 | -16,003 |
Net Cost | 3,156 | 3,481 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | 94 | 93 |
Accumulated Depreciation | ' | ' |
Net Cost | 94 | 93 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | 987 | 966 |
Accumulated Depreciation | -429 | -395 |
Net Cost | 558 | 571 |
Facilities and Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | 3,218 | 3,151 |
Accumulated Depreciation | -2,826 | -2,649 |
Net Cost | 392 | 502 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | 14,684 | 14,553 |
Accumulated Depreciation | -12,728 | -12,363 |
Net Cost | 1,956 | 2,190 |
Computer and R&D Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | 463 | 504 |
Accumulated Depreciation | -414 | -451 |
Net Cost | 49 | 53 |
Other Tangible Assets [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | 137 | 165 |
Accumulated Depreciation | -121 | -145 |
Net Cost | 16 | 20 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross Cost | 91 | 52 |
Accumulated Depreciation | ' | ' |
Net Cost | $91 | $52 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Net Cost of Assets under capital leases | $1 | $3 | ' |
Depreciation charge | 838 | 930 | 1,068 |
Capital investment funding | 3 | 1 | 11 |
Reduction in depreciation charges due to public funding | 6 | 10 | 12 |
Cash proceeds from sale of equipment | $12 | $16 | $26 |
LongTerm_Investments_LongTerm_
Long-Term Investments - Long-Term Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Equity-method investments | $63 | $106 |
Cost-method investments | 13 | 13 |
Total | $76 | $119 |
LongTerm_Investments_Equity_In
Long-Term Investments - Equity Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 03, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ST-Ericsson AT SA [Member] | ST-Ericsson AT SA [Member] | ST-Ericsson AT SA [Member] | St-Ericsson SA [Member] | St-Ericsson SA [Member] | 3Sun S.r.l. [Member] | 3Sun S.r.l. [Member] | MicroOLED SAS [Member] | MicroOLED SAS [Member] | MicroOLED SAS [Member] | MicroOLED SAS [Member] | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investments, Ownership percentage | ' | ' | ' | 49.00% | 50.00% | 50.00% | ' | 33.30% | 33.30% | 39.60% | ' | 39.60% | 39.60% |
Equity investments, Carrying value | $63 | $106 | ' | $9 | ' | $50 | ' | $13 | $91 | ' | $4.10 | $6 | $7 |
LongTerm_Investments_Additiona
Long-Term Investments - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 09, 2013 | Aug. 02, 2013 | Sep. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 03, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 03, 2009 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | JVD [Member] | JVS [Member] | JVS [Member] | St-Ericsson SA [Member] | St-Ericsson SA [Member] | St-Ericsson SA [Member] | ST-Ericsson AT SA [Member] | ST-Ericsson AT SA [Member] | ST-Ericsson AT SA [Member] | 3Sun S.r.l. [Member] | 3Sun S.r.l. [Member] | 3Sun S.r.l. [Member] | 3Sun S.r.l. [Member] | MicroOLED SAS [Member] | MicroOLED SAS [Member] | MicroOLED SAS [Member] | MicroOLED SAS [Member] | MicroOLED SAS [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Identification of Technology Intangibles [Member] | |||||||||
USD ($) | ||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Controlling share held by Ericsson | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | 49.00% | 50.00% | ' | 33.30% | ' | 33.30% | 39.60% | ' | 39.60% | 39.60% | ' |
Equity-method investments | ' | $63 | ' | $106 | ' | ' | $4 | ' | $50 | $50 | ' | ' | ' | $9 | ' | ' | $13 | ' | $91 | ' | $4.10 | $6 | $7 | $4 |
Sale of Stock | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of retained non-controlling interest | ' | ' | ' | ' | ' | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deconsolidated gain or loss | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding commitment letters capped amount | ' | 149 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in capital | ' | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan conversion to equity | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges | 69 | 109 | ' | 1,268 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 159 | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) on equity-method investments | ' | -122 | ' | -24 | -28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' | ' | ' | ' |
Shareholder's loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' |
Possible future equity contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 7 | ' | ' | ' | ' | ' | ' |
LongTerm_Investments_Summarize
Long-Term Investments - Summarized Financial Information of Company's Equity-Method Investments (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Current assets | $4,807 | $5,502 | ' |
Non-current assets | 4,366 | 4,932 | ' |
Current liabilities | 1,993 | 2,555 | ' |
Non-current liabilities | 1,463 | 1,515 | ' |
Total revenues | 8,082 | 8,493 | 9,735 |
Operating income (loss) | -465 | -2,081 | 46 |
Net income (loss) | -629 | -2,188 | 155 |
Equity Method Investments [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Current assets | 266 | 121 | ' |
Non-current assets | 287 | 573 | ' |
Current liabilities | 178 | 168 | ' |
Non-current liabilities | 249 | 297 | ' |
Total revenues | 282 | 422 | 255 |
Operating income (loss) | -271 | -51 | -10 |
Net income (loss) | ($282) | ($103) | ($11) |
Other_NonCurrent_Assets_Other_
Other Non-Current Assets - Other Investment and Other Non Current Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Available-for-sale equity securities | $11 | $10 |
Trading equity securities | 8 | 8 |
Long-term State receivables | 513 | 470 |
Long-term receivables from third parties | 7 | 2 |
Long-term loans to affiliates | 17 | 28 |
Prepaid for pension | 10 | 5 |
Deposits and other non-current assets | 34 | 37 |
Total | $600 | $560 |
Other_NonCurrent_Assets_Additi
Other Non-Current Assets - Additional Information (Detail) (Minimum [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | ' |
Long-term receivables expected collection period | '1 year |
Other_Payables_and_Accrued_Lia2
Other Payables and Accrued Liabilities - Other Payables and Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Employee related liabilities | $383 | $397 |
Employee compensated absences | 128 | 127 |
Taxes other than income taxes | 85 | 71 |
Advances | 32 | 45 |
Payables to equity-method investments | 81 | 45 |
Obligations for capacity rights | 3 | 1 |
Derivative instruments | 4 | 1 |
Provision for restructuring | 65 | 75 |
Current portion of pension | 12 | 16 |
Royalties | 37 | 39 |
Others | 107 | 125 |
Total | $937 | $942 |
Other_Payables_and_Accrued_Lia3
Other Payables and Accrued Liabilities - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Value of rights granted to Numonyx to use certain assets retained by the company | $6 | $14 |
Rights granted to use certain assets reported as a current liability | $3 | $1 |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt - Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total | $1,153 | $1,301 |
Less current portion | -225 | -630 |
Total long-term debt, less current portion | 928 | 671 |
0.26% due 2014, floating interest rate at Libor + 0.017% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 20 | 40 |
0.26% due 2015, floating interest rate at Libor + 0.026% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 19 | 28 |
0.29% due 2016, floating interest rate at Libor + 0.052% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 58 | 77 |
0.56% due 2016, floating interest rate at Libor + 0.317% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 77 | 103 |
0.46% due 2016, floating interest rate at Libor + 0.213% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 86 | 114 |
1.34% due 2020, floating interest rate at Libor + 1.099% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 87 | 100 |
1.20% due 2020, floating interest rate at Libor + 0.956% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 193 | 221 |
1.04% due 2020, floating interest rate at Euribor + 0.817% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 121 | 132 |
0.88% due 2021, floating interest rate at Libor + 0.525% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 240 | ' |
0.92% due 2021, floating interest rate at Libor + 0.572% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Funding program loans from European Investment Bank | 231 | ' |
0.55% (weighted average), due 2014-2018, fixed interest rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other Loans Payable | 5 | 7 |
1.95% (weighted average), due 2017, fixed interest rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other Loans Payable | 10 | 12 |
0.67% (weighted average), due 2018, fixed interest rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other Loans Payable | 2 | ' |
0.87% (weighted average), due 2020, fixed interest rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other Loans Payable | 3 | ' |
5.95% (weighted average), due 2015-2017, fixed interest rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Capital Lease | 1 | 5 |
0.58%, due 2013, floating interest rate at Euribor + 0.40% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Bonds | ' | $462 |
LongTerm_Debt_LongTerm_Debt_Pa
Long-Term Debt - Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
0.26% due 2014, floating interest rate at Libor + 0.017% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2014 |
Interest rate | 0.26% |
Description of floating rate basis | 'Libor + 0.017% |
Basis spread on floating rate | 0.02% |
0.26% due 2015, floating interest rate at Libor + 0.026% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2015 |
Interest rate | 0.26% |
Description of floating rate basis | 'Libor + 0.026% |
Basis spread on floating rate | 0.03% |
0.29% due 2016, floating interest rate at Libor + 0.052% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2016 |
Interest rate | 0.29% |
Description of floating rate basis | 'Libor + 0.052% |
Basis spread on floating rate | 0.05% |
0.56% due 2016, floating interest rate at Libor + 0.317% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2016 |
Interest rate | 0.56% |
Description of floating rate basis | 'Libor + 0.317% |
Basis spread on floating rate | 0.32% |
0.46% due 2016, floating interest rate at Libor + 0.213% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2016 |
Interest rate | 0.46% |
Description of floating rate basis | 'Libor + 0.213% |
Basis spread on floating rate | 0.21% |
1.34% due 2020, floating interest rate at Libor + 1.099% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2020 |
Interest rate | 1.34% |
Description of floating rate basis | 'Libor + 1.099% |
Basis spread on floating rate | 1.10% |
1.20% due 2020, floating interest rate at Libor + 0.956% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2020 |
Interest rate | 1.20% |
Description of floating rate basis | 'Libor + 0.956% |
Basis spread on floating rate | 0.96% |
1.04% due 2020, floating interest rate at Euribor + 0.817% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2020 |
Interest rate | 1.04% |
Description of floating rate basis | 'Euribor + 0.817% |
Basis spread on floating rate | 0.82% |
0.88% due 2021, floating interest rate at Libor + 0.525% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2021 |
Interest rate | 0.88% |
Description of floating rate basis | 'Libor + 0.525% |
Basis spread on floating rate | 0.53% |
0.92% due 2021, floating interest rate at Libor + 0.572% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2021 |
Interest rate | 0.92% |
Description of floating rate basis | 'Libor + 0.572% |
Basis spread on floating rate | 0.57% |
0.55% (weighted average), due 2014-2018, fixed interest rate [Member] | ' |
Debt Instrument [Line Items] | ' |
Interest rate | 0.55% |
0.55% (weighted average), due 2014-2018, fixed interest rate [Member] | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2014 |
0.55% (weighted average), due 2014-2018, fixed interest rate [Member] | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2018 |
1.95% (weighted average), due 2017, fixed interest rate [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2017 |
Interest rate | 1.95% |
0.67% (weighted average), due 2018, fixed interest rate [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2018 |
Interest rate | 0.67% |
0.87% (weighted average), due 2020, fixed interest rate [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2020 |
Interest rate | 0.87% |
5.95% (weighted average), due 2015-2017, fixed interest rate [Member] | ' |
Debt Instrument [Line Items] | ' |
Interest rate | 5.95% |
5.95% (weighted average), due 2015-2017, fixed interest rate [Member] | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2015 |
5.95% (weighted average), due 2015-2017, fixed interest rate [Member] | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2017 |
0.58%, due 2013, floating interest rate at Euribor + 0.40% [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt maturity date | '2013 |
Interest rate | 0.58% |
Description of floating rate basis | 'Euribor + 0.40% |
Basis spread on floating rate | 0.40% |
LongTerm_Debt_LongTerm_Debt_De1
Long-Term Debt - Long-Term Debt Denominated by Currencies (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $1,153 | $1,301 |
U.S. dollar [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 1,012 | 689 |
Euro [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $141 | $612 |
LongTerm_Debt_Total_LongTerm_D
Long-Term Debt - Total Long-Term Debt Outstanding Maturities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $225 | ' |
2015 | 205 | ' |
2016 | 195 | ' |
2017 | 119 | ' |
2018 | 117 | ' |
Thereafter | 292 | ' |
Total | $1,153 | $1,301 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2006 | Dec. 31, 2011 | Dec. 31, 2010 |
USD ($) | USD ($) | USD ($) | Medium Term Credit Facilities [Member] | R & D project in France [Member] | R & D project in France [Member] | R & D projects in Italy [Member] | R & D projects in Italy [Member] | Multi Currency Loan to Support our Industrial and R&D Programs [Member] | Multi Currency Loan to Support our Industrial and R&D Programs [Member] | Multi Currency Loan to Support our Industrial and R&D Programs [Member] | Multi Currency Loan to Support our Industrial and R&D Programs [Member] | European Investment Bank [Member] | 0.58%, due 2013, floating interest rate at Euribor + 0.40% [Member] | 0.58%, due 2013, floating interest rate at Euribor + 0.40% [Member] | Credit Facilities [Member] | Credit Facilities [Member] | |
USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | EUR (€) | USD ($) | CreditFacility | EUR (€) | EUR (€) | EUR (€) | |||||
Bonds | Bonds | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Zero coupon unsubordinated convertible bonds, Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 500 | ' | ' |
Issue price as percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.87% | ' | ' |
Senior bonds, note maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17-Mar-13 | ' | ' | ' |
Coupon rate of Note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Three-month Euribor plus 0.40% | ' | ' | ' |
Number of bonds repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,000 | 74,000 |
Cash consideration | 166 | 109 | 108 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107 | 98 |
Unutilized committed medium term credit facilities | ' | ' | ' | 730 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit outstanding amount | ' | ' | ' | ' | ' | 245 | ' | 250 | ' | 350 | 350 | ' | ' | ' | ' | ' | ' |
Number of long-term amortizing credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | 97 | ' | 163 | ' | 401 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit amount withdrawn | ' | ' | ' | ' | $341 | ' | $380 | ' | $321 | € 100 | ' | $471 | ' | ' | ' | ' | ' |
PostEmployment_and_Other_LongT2
Post-Employment and Other Long-Term Employees Benefits - Changes in Benefit Obligation and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in plan assets: | ' | ' | ' |
Plan assets at fair value at beginning of year | $422 | ' | ' |
Employer contributions | 29 | 34 | ' |
Plan assets at fair value at end of year | 448 | 422 | ' |
Net amount recognized in the balance sheet consisted of the following: | ' | ' | ' |
Non-current assets | 10 | 5 | ' |
Long-term liabilities | -366 | -477 | ' |
Pension benefits, Defined Benefit [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 901 | 794 | ' |
Service cost | 37 | 40 | 34 |
Interest cost | 28 | 31 | 33 |
Employee contributions | 5 | 6 | ' |
Benefits paid | -19 | -21 | ' |
Effect of curtailment | -3 | ' | ' |
Effect of settlement | -32 | -31 | ' |
Actuarial (gain) loss | -92 | 58 | ' |
Transfer in | 12 | 70 | ' |
Transfer out | -12 | -70 | ' |
Acquisition / change in scope | 9 | ' | ' |
Plan amendment | 5 | 4 | ' |
ST-Ericsson deconsolidation | -49 | ' | ' |
Foreign currency translation adjustment | 17 | 20 | ' |
Benefit obligation at end of year | 807 | 901 | 794 |
Change in plan assets: | ' | ' | ' |
Plan assets at fair value at beginning of year | 422 | 378 | ' |
Expected return on plan assets | 18 | 18 | 20 |
Employer contributions | 29 | 34 | ' |
Employee contributions | 5 | 6 | ' |
Benefits paid | -9 | -11 | ' |
Effect of settlement | -25 | -30 | ' |
Actuarial gain (loss) | 14 | 17 | ' |
Transfer in | 8 | 40 | ' |
Transfer out | -8 | -40 | ' |
Foreign currency translation adjustments | 5 | 10 | ' |
ST-Ericsson deconsolidation | -11 | ' | ' |
Plan assets at fair value at end of year | 448 | 422 | 378 |
Funded status | -359 | -479 | ' |
Net amount recognized in the balance sheet consisted of the following: | ' | ' | ' |
Non-current assets | 10 | 5 | ' |
Current liabilities | -12 | -16 | ' |
Long-term liabilities | -357 | -468 | ' |
Net amount recognized | -359 | -479 | ' |
Other Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 63 | 52 | ' |
Service cost | 8 | 9 | 8 |
Interest cost | 2 | 3 | 3 |
Employee contributions | ' | ' | ' |
Benefits paid | -4 | -3 | ' |
Effect of curtailment | -2 | ' | ' |
Effect of settlement | ' | ' | ' |
Actuarial (gain) loss | ' | 2 | ' |
Transfer in | 1 | 3 | ' |
Transfer out | -1 | -3 | ' |
Acquisition / change in scope | 1 | ' | ' |
Plan amendment | ' | ' | ' |
ST-Ericsson deconsolidation | -4 | ' | ' |
Foreign currency translation adjustment | 1 | ' | ' |
Benefit obligation at end of year | 65 | 63 | 52 |
Change in plan assets: | ' | ' | ' |
Plan assets at fair value at beginning of year | ' | ' | ' |
Expected return on plan assets | ' | ' | ' |
Employer contributions | ' | ' | ' |
Employee contributions | ' | ' | ' |
Benefits paid | ' | ' | ' |
Effect of settlement | ' | ' | ' |
Actuarial gain (loss) | ' | ' | ' |
Transfer in | ' | ' | ' |
Transfer out | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' |
ST-Ericsson deconsolidation | ' | ' | ' |
Plan assets at fair value at end of year | ' | ' | ' |
Funded status | -65 | -63 | ' |
Net amount recognized in the balance sheet consisted of the following: | ' | ' | ' |
Non-current assets | ' | ' | ' |
Current liabilities | -5 | -3 | ' |
Long-term liabilities | -60 | -60 | ' |
Net amount recognized | ($65) | ($63) | ' |
PostEmployment_and_Other_LongT3
Post-Employment and Other Long-Term Employees Benefits - Accumulated Other Comprehensive Income (Loss) Before Tax Effects (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | ' | ' |
Other comprehensive loss, actuarial (gains)/losses, beginning balance | $209 | $175 |
Net amount generated/arising in current year, actuarial (gains)/losses | -105 | 43 |
Amortization, actuarial (gains)/losses | -15 | -14 |
Foreign currency translation, actuarial (gains)/losses before tax | 2 | 5 |
Other comprehensive loss, actuarial (gains)/losses, ending balance | 91 | 209 |
Other comprehensive loss, prior service cost, beginning balance | 9 | 10 |
Net amount generated/arising in current year, prior service cost | 5 | 4 |
Amortization, prior service cost | -5 | -5 |
Other comprehensive loss, prior service cost, ending balance | 9 | 9 |
Other comprehensive loss, Total, beginning balance | 218 | 185 |
Net amount generated/arising in current year, Total | -100 | 47 |
Amortization, Total | -20 | -19 |
Foreign currency translation adjustment, Total | 2 | 5 |
Other comprehensive loss, Total, ending balance | $100 | $218 |
Post_Employment_and_Other_Long
Post Employment and Other Long Term Employees Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Expected amortization of actuarial losses in year 2014 | $2 | ' | ' |
Expected amortization of past service cost in year 2014 | 1 | ' | ' |
Employer contributions | 29 | 34 | ' |
Expected contribution in cash | 26 | ' | ' |
Accrued benefits related to defined contribution pension plans | 19 | 19 | ' |
Annual cost of defined contribution plans | $89 | $94 | $98 |
PostEmployment_and_Other_LongT4
Post-Employment and Other Long-Term Employees Benefits - Schedule of Accumulated Benefit Obligations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension benefits, Defined Benefit [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Accumulated benefit obligations | $717 | $779 |
Other Pension Plans, Defined Benefit [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Accumulated benefit obligations | $51 | $49 |
PostEmployment_and_Other_LongT5
Post-Employment and Other Long-Term Employees Benefits - Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension benefits, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $37 | $40 | $34 |
Interest cost | 28 | 31 | 33 |
Expected return on plan assets | -18 | -18 | -20 |
Amortization of actuarial net loss (gain) | 11 | 12 | 6 |
Amortization of prior service cost | 5 | 5 | 1 |
Effect of settlement | 1 | ' | -1 |
Effect of curtailment | ' | ' | ' |
Net periodic benefit cost | 64 | 70 | 53 |
Other Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 8 | 9 | 8 |
Interest cost | 2 | 3 | 3 |
Expected return on plan assets | ' | ' | ' |
Amortization of actuarial net loss (gain) | ' | 2 | -5 |
Amortization of prior service cost | ' | ' | ' |
Effect of settlement | ' | ' | ' |
Effect of curtailment | -2 | ' | ' |
Net periodic benefit cost | $8 | $14 | $6 |
PostEmployment_and_Other_LongT6
Post-Employment and Other Long-Term Employees Benefits - Weighted Average Assumptions Used in Determination of Benefit Obligation and Plan Assets (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Discount rate | 3.83% | 3.43% | ' |
Salary increase rate | 2.82% | 2.92% | ' |
Expected long-term rate of return on funds for the pension expense of the year | 4.88% | 4.43% | ' |
Net periodic benefit cost, Discount rate | 3.43% | 4.14% | 4.68% |
Net periodic benefit cost, Salary increase rate | 2.92% | 2.99% | 3.13% |
Net periodic benefit cost, Expected long-term rate of return on funds for the pension expense of the year | 4.43% | 4.57% | 4.99% |
PostEmployment_and_Other_LongT7
Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Allocation of pension plan assets | 100.00% | 100.00% |
Equity Securities [Member] | ' | ' |
Allocation of pension plan assets | 43.00% | 37.00% |
Bonds Securities Remunerating Interest [Member] | ' | ' |
Allocation of pension plan assets | 30.00% | 31.00% |
Real Estate [Member] | ' | ' |
Allocation of pension plan assets | 2.00% | 2.00% |
Other [Member] | ' | ' |
Allocation of pension plan assets | 25.00% | 30.00% |
PostEmployment_and_Other_LongT8
Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation Including Fair-Value Measurements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | $448 | $422 | ' |
Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 7 | 5 | ' |
Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 192 | 156 | ' |
Debt Securities Issued by Foreign Governments [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 13 | ' |
Corporate Debt Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 122 | 119 | ' |
Investment Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 7 | ' |
Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 9 | 9 | ' |
Other Plan Asset [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 105 | 113 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 31 | 31 | ' |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 7 | 5 | ' |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 7 | 9 | ' |
Fair Value, Inputs, Level 1 [Member] | Debt Securities Issued by Foreign Governments [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 12 | ' |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 4 | ' |
Fair Value, Inputs, Level 1 [Member] | Investment Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | ' |
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Other Plan Asset [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 308 | 271 | ' |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 185 | 147 | ' |
Fair Value, Inputs, Level 2 [Member] | Debt Securities Issued by Foreign Governments [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 1 | ' |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 118 | 115 | ' |
Fair Value, Inputs, Level 2 [Member] | Investment Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 3 | ' |
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 5 | ' |
Fair Value, Inputs, Level 2 [Member] | Other Plan Asset [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 109 | 120 | 104 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Debt Securities Issued by Foreign Governments [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Investment Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 3 | ' |
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 4 | ' |
Fair Value, Inputs, Level 3 [Member] | Other Plan Asset [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | $105 | $113 | ' |
PostEmployment_and_Other_LongT9
Post-Employment and Other Long-Term Employees Benefits - Reconciliation for Plan Assets Measured at Fair Value Using Unobservable Inputs (Level 3) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets at fair value at end of year | $448 | $422 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan assets at fair value at beginning of year | 120 | 104 |
Actual return on plan assets | ' | 3 |
Contributions (employer and employee) | 15 | 16 |
Benefits paid | -2 | -3 |
Settlements | -23 | -7 |
Reclassification to Level 3 | ' | 4 |
ST-Ericsson deconsolidation | -4 | ' |
Foreign currency translation adjustment | 3 | 3 |
Plan assets at fair value at end of year | $109 | $120 |
Recovered_Sheet1
Post-Employment and Other Long-Term Employees Benefits - Estimated Future Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension benefits, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $29 |
2015 | 21 |
2016 | 20 |
2017 | 34 |
2018 | 31 |
From 2019 to 2023 | 211 |
Other Pension Plans, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 5 |
2015 | 9 |
2016 | 4 |
2017 | 4 |
2018 | 5 |
From 2019 to 2023 | $28 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2002 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 22, 2007 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2001 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2002 | Dec. 31, 2002 | Dec. 31, 2013 | 20-May-12 | 20-May-11 | 20-May-10 | 20-May-12 | 20-May-11 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | March 2014 [Member] | Employees [Member] | Employee Stock Option Plan, 2001 [Member] | Employee Plan 2011 [Member] | Employee Plan 2011 [Member] | Retained Earnings [Member] | Retained Earnings [Member] | Employee Plan 2012 [Member] | Employee Plan 2012 [Member] | Employee Plan 2012 [Member] | Supervisory Board Option Plan [Member] | Advisor To Supervisory Board [Member] | Supervisory Board 2012 Plan [Member] | Employee Plan 2009 [Member] | Employee Plan 2009 [Member] | Employee Plan 2009 [Member] | Employee Plan 2009 [Member] | Employee Plan 2009 [Member] | Employee Plan 2010 [Member] | Employee Plan 2010 [Member] | Employee Plan 2010 [Member] | 2012 CEO Special Bonus [Member] | 2012 CEO Special Bonus [Member] | Employee Plan 2013 [Member] | Employee Plan 2013 [Member] | Employee Plan 2013 [Member] | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Employees [Member] | Supervisory Board [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | USD ($) | Employees [Member] | Employees [Member] | Employees [Member] | USD ($) | Performance Conditions [Member] | Employees [Member] | ||||||||||||||||||||
EUR (€) | France [Member] | France [Member] | USD ($) | |||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Authorized share capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 1,810 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 1,200,000,000 | ' | ' | 1,200,000,000 | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preference stock, shares authorized | 540,000,000 | ' | ' | 540,000,000 | 540,000,000 | ' | ' | ' | ' | ' | ' | 540,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, nominal value | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 1.04 | € 1.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 910,703,305 | ' | ' | 910,703,305 | 910,559,805 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock Shares outstanding | 890,606,763 | ' | ' | 890,606,763 | 887,953,202 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued as a percentage of par value of the preference shares to be issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preference shares outstanding maximum period | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preference share issued | 0 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares authorized to repurchase | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of shares | ' | ' | ' | ' | ' | ' | 29,520,220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company owned treasury shares | 20,096,542 | ' | ' | 20,096,542 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of treasury shares to employees under the Company's share based remuneration programs | 22,823,678 | ' | ' | 22,823,678 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of treasury shares to employees under the Company's share based remuneration during the year | ' | ' | ' | 2,510,061 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards granted, Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,412,045 | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,004,475 | 6,412,045 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of awards | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration period of options after date of grant,in years | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life options | ' | ' | ' | '3 months 18 days | '9 months 18 days | '1 year 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards are granted at the nominal value of the share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 1.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | 1 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sub plan for employees of Company's European subsidiaries for statutory payroll tax purposes nonvested shares vested over requisite service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36.00% | 32.00% | 32.00% | 36.00% | 64.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting schedule for Supervisory Board | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'One third of the total number of awards granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.08 | ' | ' | ' | $4.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.74 | ' | ' | $6.32 | $9.55 | ' | ' |
Number of shares to vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'None of the three performance conditions were met | ' | ' | ' | 'Two thirds of the awards granted will fully vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Two thirds of the awards granted fully vest | ' | ' | ' | ' | 'Two thirds of the awards subject to performance conditions are expected to vest | ' | ' |
Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory | 2 | ' | ' | 2 | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to the grant of unvested shares | 42 | ' | ' | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee service share-based compensation, unvested awards, total compensation cost not yet recognized, period for recognition | ' | ' | ' | '10 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income tax expense (benefit) relating to unvested share based compensation expense | ' | ' | ' | 5 | 2 | -7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends, per share | $0.10 | $0.10 | $0.10 | ' | $0.40 | $0.40 | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend payable date | '2013-12 | ' | ' | '2013-12 | ' | ' | ' | ' | ' | ' | ' | ' | '2014-03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend paid | 89 | 93 | 75 | ' | 266 | ' | ' | ' | ' | ' | ' | ' | 89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends | ' | ' | ' | 356 | 355 | 354 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 355 | 354 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend paid per common share per quarter | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable to stockholders at the end of the period | $89 | ' | ' | $89 | $89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Summary_of
Shareholders' Equity - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Outstanding shares, beginning balance | 16,690,472 | 26,453,152 | 35,296,895 |
Options forfeited, shares | -8,400,221 | -9,762,680 | -8,843,743 |
Outstanding shares, ending balance | 8,290,251 | 16,690,472 | 26,453,152 |
Stock option plans, Lower price range, Beginning Outstanding options | $16.73 | $16.73 | $16.73 |
Stock option plans, Upper price range, Beginning Outstanding options | $27.21 | $33.70 | $39 |
Options forfeited, Lower Range, Price Per Share | $16.73 | $17.08 | $17.08 |
Options forfeited, Upper Range, Price Per Share | $27.21 | $33.70 | $39 |
Stock option plans, Lower price range, Ending Outstanding options | $16.73 | $16.73 | $16.73 |
Stock option plans, Upper price range, Ending Outstanding options | $27.21 | $27.21 | $33.70 |
Outstanding, Weighted Average Price Per Share, beginning | $21 | $24.51 | $27.17 |
Options forfeited, Weighted Average Price Per Share | $19.39 | $30.50 | $35.11 |
Outstanding, Weighted Average Price Per Share, ending | $22.64 | $21 | $24.51 |
Shareholders_Equity_ShareBased
Shareholders' Equity - Share-Based Compensation Arrangement by Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
$25.90 - $27.21 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of shares | 1,900 |
Option price range, Lower | $25.90 |
Option price range, Upper | $27.21 |
Weighted average exercise price | $27.21 |
Weighted average remaining contractual life | '4 days |
$19.18 - $22.83 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of shares | 8,188,365 |
Option price range, Lower | $19.18 |
Option price range, Upper | $22.83 |
Weighted average exercise price | $22.71 |
Weighted average remaining contractual life | '3 months 26 days |
$16.73 - $17.08 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of shares | 99,986 |
Option price range, Lower | $16.73 |
Option price range, Upper | $17.08 |
Weighted average exercise price | $17.03 |
Weighted average remaining contractual life | '8 months 19 days |
Shareholders_Equity_Summary_of1
Shareholders' Equity - Summary of Grants under Outstanding Stock Award Plans (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employees [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Awards granted, Number of shares | 6,412,045 | ' |
Employees [Member] | Employee Plan 2010 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Awards granted, Number of shares | ' | ' |
Employees [Member] | 2012 CEO Special Bonus [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Awards granted, Number of shares | ' | ' |
Employees [Member] | Employee Plan 2012 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Awards granted, Number of shares | ' | ' |
Employees [Member] | Employee Plan 2013 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Awards granted, Number of shares | 6,412,045 | ' |
2005 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2005 | ' |
Options granted and vested | 66,000 | ' |
Options waived at grant | -15,000 | ' |
2006 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2006 | ' |
Options granted and vested | 66,000 | ' |
Options waived at grant | -15,000 | ' |
2007 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2007 | ' |
Options granted and vested | 165,000 | ' |
Options waived at grant | -22,500 | ' |
2008 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2008 | ' |
Options granted and vested | 165,000 | ' |
Options waived at grant | -22,500 | ' |
2009 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2009 | ' |
Options granted and vested | 165,000 | ' |
Options waived at grant | -7,500 | ' |
2010 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2010 | ' |
Options granted and vested | 172,500 | ' |
Options waived at grant | -7,500 | ' |
2011 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2011 | ' |
Options granted and vested | 172,500 | ' |
Options waived at grant | -30,000 | ' |
2012 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2012 | ' |
Options granted and vested | 180,000 | 180,000 |
Options waived at grant | -22,500 | -22,500 |
2013 [Member] | Supervisory Board [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Year of grant | '2013 | ' |
Options granted and vested | 0 | ' |
Options waived at grant | 0 | ' |
July 22, 2010 [Member] | Employees [Member] | Employee Plan 2010 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 22-Jul-10 | ' |
Awards granted, Number of shares | 6,344,725 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | -2,076,448 | ' |
December 17, 2010 [Member] | Employees [Member] | Employee Plan 2010 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 17-Dec-10 | ' |
Awards granted, Number of shares | 221,650 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | -73,524 | ' |
July 25, 2011 [Member] | Employees [Member] | Employee Plan 2011 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 25-Jul-11 | ' |
Awards granted, Number of shares | 5,881,630 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | -5,824,445 | ' |
November 14, 2011 [Member] | Employees [Member] | Employee Plan 2011 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 14-Jul-11 | ' |
Awards granted, Number of shares | 95,000 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | -91,540 | ' |
May 30, 2012 [Member] | Employees [Member] | 2012 CEO Special Bonus [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 30-May-12 | ' |
Awards granted, Number of shares | 100,862 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | ' | ' |
July 23, 2012 [Member] | Employees [Member] | Employee Plan 2012 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 23-Jul-12 | ' |
Awards granted, Number of shares | 6,216,285 | ' |
Options waived at grant | -2,400 | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | -1,991,558 | ' |
December 21, 2012 [Member] | Employees [Member] | Employee Plan 2012 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 21-Dec-12 | ' |
Awards granted, Number of shares | 304,480 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | -100,373 | ' |
July 22, 2013 [Member] | Employees [Member] | Employee Plan 2013 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 22-Jul-13 | ' |
Awards granted, Number of shares | 5,750,730 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | ' | ' |
December 18, 2013 [Member] | Employees [Member] | Employee Plan 2013 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 18-Dec-13 | ' |
Awards granted, Number of shares | 659,515 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | ' | ' |
December 27, 2013 [Member] | Employees [Member] | Employee Plan 2013 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Grant date of Nonvested share | 27-Dec-13 | ' |
Awards granted, Number of shares | 1,800 | ' |
Options waived at grant | ' | ' |
Share based compensation arrangement by share based payment award, Number of shares lost on performance | ' | ' |
Shareholders_Equity_Summary_of2
Shareholders' Equity - Summary of Nonvested Share Activity (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employees [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 8,060,218 | ' |
Awards granted, Number of shares | 6,412,045 | ' |
Awards forfeited, Number of Shares | -271,171 | ' |
Awards cancelled on failed vesting conditions, Number of Shares | -2,091,931 | ' |
Awards vested, Number of Shares | -2,510,061 | ' |
Ending Balance, Number of Shares | 9,599,100 | ' |
Supervisory Board [Member] | 2005 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 34,115 | 34,115 |
Year of grant | '2005 | ' |
Granted and vested | 66,000 | ' |
Waived at grant | -15,000 | ' |
Exercised | -3,000 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 31,115 | 34,115 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | ' | ' |
Supervisory Board [Member] | 2006 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 33,000 | 33,000 |
Year of grant | '2006 | ' |
Granted and vested | 66,000 | ' |
Waived at grant | -15,000 | ' |
Exercised | -3,000 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 30,000 | 33,000 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | ' | ' |
Supervisory Board [Member] | 2007 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 82,500 | 82,500 |
Year of grant | '2007 | ' |
Granted and vested | 165,000 | ' |
Waived at grant | -22,500 | ' |
Exercised | -22,500 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 60,000 | 82,500 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | ' | ' |
Supervisory Board [Member] | 2008 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 85,000 | 85,000 |
Year of grant | '2008 | ' |
Granted and vested | 165,000 | ' |
Waived at grant | -22,500 | ' |
Exercised | -10,000 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 75,000 | 85,000 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | ' | ' |
Supervisory Board [Member] | 2009 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 95,000 | 95,000 |
Year of grant | '2009 | ' |
Granted and vested | 165,000 | ' |
Waived at grant | -7,500 | ' |
Exercised | -20,000 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 75,000 | 95,000 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | ' | ' |
Supervisory Board [Member] | 2010 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 107,500 | 107,500 |
Year of grant | '2010 | ' |
Granted and vested | 172,500 | ' |
Waived at grant | -7,500 | ' |
Exercised | -25,000 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 82,500 | 107,500 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | ' | ' |
Supervisory Board [Member] | 2011 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 142,500 | 142,500 |
Year of grant | '2011 | ' |
Granted and vested | 172,500 | ' |
Waived at grant | -30,000 | ' |
Exercised | -25,000 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 117,500 | 142,500 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | ' | ' |
Supervisory Board [Member] | 2012 [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 157,500 | ' |
Year of grant | '2012 | ' |
Granted and vested | 180,000 | 180,000 |
Waived at grant | -22,500 | -22,500 |
Exercised | -35,000 | ' |
Awards forfeited, Number of Shares | ' | ' |
Ending Balance, Number of Shares | 122,500 | 157,500 |
Shares corresponding to exercised option not yet available for trade as of 31. 12. 2013 | 10,000 | ' |
Employee Plan 2010 [Member] | Employees [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 1,485,836 | ' |
Awards granted, Number of shares | ' | ' |
Awards forfeited, Number of Shares | -21,180 | ' |
Awards cancelled on failed vesting conditions, Number of Shares | ' | ' |
Awards vested, Number of Shares | -1,464,656 | ' |
Ending Balance, Number of Shares | ' | ' |
2012 CEO Special Bonus [Member] | Employees [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 100,862 | ' |
Awards granted, Number of shares | ' | ' |
Awards forfeited, Number of Shares | ' | ' |
Awards cancelled on failed vesting conditions, Number of Shares | ' | ' |
Awards vested, Number of Shares | -33,621 | ' |
Ending Balance, Number of Shares | 67,241 | ' |
Employee Plan 2012 [Member] | Employees [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | 6,473,520 | ' |
Awards granted, Number of shares | ' | ' |
Awards forfeited, Number of Shares | -219,711 | ' |
Awards cancelled on failed vesting conditions, Number of Shares | -2,091,931 | ' |
Awards vested, Number of Shares | -1,009,339 | ' |
Ending Balance, Number of Shares | 3,152,539 | ' |
Employee Plan 2013 [Member] | Employees [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Balance, Number of Shares | ' | ' |
Awards granted, Number of shares | 6,412,045 | ' |
Awards forfeited, Number of Shares | -30,280 | ' |
Awards cancelled on failed vesting conditions, Number of Shares | ' | ' |
Awards vested, Number of Shares | -2,445 | ' |
Ending Balance, Number of Shares | 6,379,320 | ' |
Shareholders_Equity_Classifica
Shareholders' Equity - Classification of Pre-Payroll Tax and Social Contribution Stock-Based Compensation Expense Included in Consolidated Statements of Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total pre-payroll tax and social contribution compensation | $26 | $11 | $29 |
Cost of Sales [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total pre-payroll tax and social contribution compensation | 5 | 2 | 5 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total pre-payroll tax and social contribution compensation | 13 | 6 | 16 |
Research and Development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total pre-payroll tax and social contribution compensation | $8 | $3 | $8 |
Shareholders_Equity_Accumulate
Shareholders' Equity - Accumulated Balances Related to Each Component of Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
OCI before reclassifications | $226 | $41 | ($197) | ' |
Amounts reclassified from AOCI | -14 | 80 | -140 | ' |
Impact of ST-Ericsson deconsolidation | 60 | ' | ' | ' |
OCI Balance | 272 | 121 | -337 | ' |
Cumulative tax impact | -24 | 3 | 28 | ' |
OCI Balance, net of tax | 248 | 124 | -309 | ' |
Balance | 1,024 | 752 | 631 | 968 |
Cumulative tax impact | 18 | 42 | 39 | 11 |
Balance, net of tax | 1,042 | 794 | 670 | 979 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' |
OCI before reclassifications | 40 | 28 | -15 | ' |
Amounts reclassified from AOCI | -28 | 62 | -110 | ' |
Impact of ST-Ericsson deconsolidation | ' | ' | ' | ' |
OCI Balance | 12 | 90 | -125 | ' |
Cumulative tax impact | -3 | -11 | 9 | ' |
OCI Balance, net of tax | 9 | 79 | -116 | ' |
Balance | 38 | 26 | -64 | 61 |
Cumulative tax impact | -5 | -2 | 9 | ' |
Balance, net of tax | 33 | 24 | -55 | 61 |
Available-For-Sale Securities [Member] | ' | ' | ' | ' |
OCI before reclassifications | 2 | 6 | ' | ' |
Amounts reclassified from AOCI | ' | ' | -33 | ' |
Impact of ST-Ericsson deconsolidation | ' | ' | ' | ' |
OCI Balance | 2 | 6 | -33 | ' |
Cumulative tax impact | 3 | ' | 1 | ' |
OCI Balance, net of tax | 5 | 6 | -32 | ' |
Balance | 1 | -1 | -7 | 26 |
Cumulative tax impact | ' | -3 | -3 | -4 |
Balance, net of tax | 1 | -4 | -10 | 22 |
Accumulated Defined Benefit Plan Items [Member] | ' | ' | ' | ' |
OCI before reclassifications | 80 | -57 | -81 | ' |
Amounts reclassified from AOCI | 14 | 18 | 3 | ' |
Impact of ST-Ericsson deconsolidation | 11 | ' | ' | ' |
OCI Balance | 105 | -39 | -78 | ' |
Cumulative tax impact | -24 | 14 | 18 | ' |
OCI Balance, net of tax | 81 | -25 | -60 | ' |
Balance | -100 | -205 | -166 | -88 |
Cumulative tax impact | 23 | 47 | 33 | 15 |
Balance, net of tax | -77 | -158 | -133 | -73 |
Foreign Currency Translation Adjustment ("CTA") [Member] | ' | ' | ' | ' |
OCI before reclassifications | 104 | 64 | -101 | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' |
Impact of ST-Ericsson deconsolidation | 49 | ' | ' | ' |
OCI Balance | 153 | 64 | -101 | ' |
Cumulative tax impact | ' | ' | ' | ' |
OCI Balance, net of tax | 153 | 64 | -101 | ' |
Balance | 1,085 | 932 | 868 | 969 |
Cumulative tax impact | ' | ' | ' | ' |
Balance, net of tax | $1,085 | $932 | $868 | $969 |
Shareholders_Equity_Schedule_o
Shareholders' Equity - Schedule of Items Reclassified Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of sales | ($5,468) | ($5,710) | ($6,161) | ' |
Selling, general and administrative | -1,066 | -1,166 | -1,210 | ' |
Research and development | -1,816 | -2,413 | -2,352 | ' |
Income tax benefit | -37 | -51 | -181 | ' |
Net of tax | 1,042 | 794 | 670 | 979 |
Attributable to the Company's stockholders | 5,643 | 6,225 | ' | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net of tax | 33 | 24 | -55 | 61 |
Accumulated Defined Benefit Plan Items [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net of tax | -77 | -158 | -133 | -73 |
Available-For-Sale Securities [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net of tax | 1 | -4 | -10 | 22 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total reclassifications for the year | 17 | -72 | 144 | ' |
Attributable to noncontrolling interest | -2 | 5 | -11 | ' |
Attributable to the Company's stockholders | 15 | -67 | 133 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Income tax benefit | -4 | 12 | -11 | ' |
Net of tax | 29 | -59 | 112 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of sales | 16 | -39 | 65 | ' |
Selling, general and administrative | 3 | -5 | 8 | ' |
Research and development | 14 | -27 | 44 | ' |
Gain (loss) on financial instruments, net | ' | ' | '6 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plan Items [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Income tax benefit | 5 | 6 | 1 | ' |
Net of tax | -12 | -13 | -1 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plan Items [Member] | Amortization of Actuarial Gains (Losses) [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of sales | -1 | -1 | ' | ' |
Selling, general and administrative | -5 | -6 | ' | ' |
Research and development | -6 | -7 | -1 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plan Items [Member] | Amortization of Prior Service Cost [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of sales | ' | ' | ' | ' |
Selling, general and administrative | -1 | -1 | ' | ' |
Research and development | -4 | -4 | -1 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-For-Sale Securities [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Income tax benefit | ' | ' | ' | ' |
Net of tax | ' | ' | 33 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-For-Sale Securities [Member] | Available-for-Sale Securities [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
OTTI and realized gains on financial assets | ' | ' | $47 | ' |
Gain (loss) on financial instruments, net | ' | ' | '-14 | ' |
Shareholders_Equity_Schedule_o1
Shareholders' Equity - Schedule of Noncontrolling Interest (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Beginning balance | $794 | $670 | $979 |
Contribution of noncontrolling interest | ' | 765 | ' |
Comprehensive income (loss): | ' | ' | ' |
Net income (loss) | -629 | -2,188 | 155 |
Unrealized gains (losses) on derivatives, net of tax | 7 | 89 | -125 |
Other comprehensive income (loss), net of tax | 185 | 140 | -335 |
Comprehensive income (loss) | -444 | -2,048 | -180 |
Dividends to noncontrolling interest | -4 | -5 | -5 |
Ending balance | 1,042 | 794 | 670 |
Noncontrolling Interest [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Beginning balance | 139 | 393 | 9 |
Joint ventures deconsolidation | 73 | ' | ' |
Contribution of noncontrolling interest | ' | 765 | ' |
Comprehensive income (loss): | ' | ' | ' |
Net income (loss) | -129 | -1,030 | -495 |
Unrealized gains (losses) on derivatives, net of tax | -3 | 10 | -10 |
Other components of other comprehensive income (loss), net of tax | -2 | 6 | -16 |
Other comprehensive income (loss), net of tax | -5 | 16 | -26 |
Comprehensive income (loss) | -134 | -1,014 | -521 |
Dividends to noncontrolling interest | -4 | -5 | -5 |
Ending balance | $74 | $139 | $393 |
Earnings_Per_Share_Earnings_Pe
Earnings Per Share - Earnings Per Share (EPS), Basic and Diluted (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic EPS | ' | ' | ' |
Net income (loss) attributable to parent company | ($500) | ($1,158) | $650 |
Weighted average shares outstanding | 889,541,922 | 886,699,953 | 883,619,377 |
Basic EPS | ($0.56) | ($1.31) | $0.74 |
Diluted EPS | ' | ' | ' |
Net income (loss) attributable to parent company | -500 | -1,158 | 650 |
Convertible debt interest | 0 | ' | 5 |
Net income (loss) attributable to parent company adjusted | ($500) | ($1,158) | $655 |
Weighted average shares outstanding | 889,541,922 | 886,699,953 | 883,619,377 |
Dilutive effect of unvested shares | ' | ' | 3,771,729 |
Dilutive effect of convertible debt | ' | ' | 17,073,640 |
Number of shares used in calculating diluted EPS | 889,541,922 | 886,699,953 | 904,464,746 |
Diluted EPS | ($0.56) | ($1.31) | $0.72 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Stock Options [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options [Member] | ' | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Portion of anti-dilutive shares in outstanding stock options | 8,290,251 | 16,690,472 | 26,453,152 |
Other_Income_and_Expenses_Net_1
Other Income and Expenses, Net - Other Income and Expense, Net (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' |
Other income and expenses, net | $95 | $91 | $109 |
Research and Development Funding [Member] | ' | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' |
Other income and expenses, net | 57 | 102 | 128 |
Phase-out and Start-up Costs [Member] | ' | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' |
Other income and expenses, net | -4 | ' | -8 |
Exchange Gain, Net [Member] | ' | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' |
Other income and expenses, net | 8 | 5 | 8 |
Patent Costs [Member] | ' | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' |
Other income and expenses, net | -40 | -20 | -28 |
Gain on Sale of Businesses and Non-current Assets [Member] | ' | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' |
Other income and expenses, net | 83 | 9 | 15 |
Other, Net [Member] | ' | ' | ' |
Component of Operating Other Cost and Expense [Abstract] | ' | ' | ' |
Other income and expenses, net | ($9) | ($5) | ($6) |
Impairment_Restructuring_Charg2
Impairment, Restructuring Charges and Other Related Closure Costs - Summary of Impairment, Restructuring Charges and Other Related Closure Costs (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 |
St-Ericsson Restructuring Plan [Member] | St-Ericsson Restructuring Plan [Member] | St-Ericsson Restructuring Plan [Member] | St-Ericsson Exit [Member] | St-Ericsson Exit [Member] | Digital Restructuring Plan [Member] | Digital Restructuring Plan [Member] | $600-650 Million Net Opex Plan [Member] | Manufacturing Consolidation [Member] | Annual Impairment Test [Member] | Annual Impairment Test [Member] | Annual Impairment Test [Member] | Assets Held-for-sale Impairment [Member] | Other Restructuring Initiatives [Member] | Other Restructuring Initiatives [Member] | Other Restructuring Initiatives [Member] | Manufacturing Restructuring Plan [Member] | Manufacturing Restructuring Plan [Member] | St-Ericsson Cost Savings Plan [Member] | St-Ericsson Cost Savings Plan [Member] | St-Ericsson April 2012 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment | ($69) | ($109) | ($1,268) | ($4) | ' | ' | ($1) | ($17) | ($544) | ($2) | ($7) | ' | ($29) | ($56) | ($56) | ($694) | ($5) | ' | ' | ' | ($21) | ($3) | ' | ' | ($2) |
Restructuring charges | ' | -178 | -84 | -43 | -6 | -1 | -3 | -69 | ' | -1 | -13 | -88 | -8 | ' | ' | ' | ' | -6 | ' | -1 | ' | -13 | -10 | -26 | -60 |
Other related closure costs | ' | -5 | -24 | -28 | -3 | ' | -3 | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -4 | -2 | -21 | -10 | ' | -4 |
Total impairment, restructuring charges and other related closure costs | ' | ($292) | ($1,376) | ($75) | ($9) | ($1) | ($7) | ($86) | ($544) | ($5) | ($20) | ($88) | ($37) | ' | ($56) | ($694) | ($5) | ($6) | ($8) | ($5) | ($23) | ($37) | ($20) | ($26) | ($66) |
Impairment_Restructuring_Charg3
Impairment, Restructuring Charges and Other Related Closure Costs - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 10, 2012 | Dec. 10, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
Veredus [Member] | Wireless ("WPS") [Member] | Wireless ("WPS") [Member] | Carrollton [Member] | Digital Restructuring Plan [Member] | Digital Restructuring Plan [Member] | Other Restructuring Initiatives [Member] | Other Restructuring Initiatives [Member] | Other Restructuring Initiatives [Member] | Other Restructuring Initiatives [Member] | Manufacturing Restructuring Plan [Member] | Manufacturing Restructuring Plan [Member] | Manufacturing Restructuring Plan [Member] | Annual Impairment Test [Member] | Annual Impairment Test [Member] | Annual Impairment Test [Member] | Annual Impairment Test [Member] | Annual Impairment Test [Member] | Manufacturing Consolidation [Member] | Manufacturing Consolidation [Member] | St-Ericsson Exit [Member] | St-Ericsson Exit [Member] | St-Ericsson Exit [Member] | St-Ericsson Exit [Member] | Goodwill and Other Intangible Assets [Member] | Goodwill [Member] | Contractual Customer Relationships [Member] | Capitalized Software [Member] | Acquired technology [Member] | $600-650 Million Net Opex Plan [Member] | $600-650 Million Net Opex Plan [Member] | $600-650 Million Net Opex Plan [Member] | $600-650 Million Net Opex Plan [Member] | St-Ericsson Restructuring Plan [Member] | St-Ericsson Restructuring Plan [Member] | St-Ericsson Restructuring Plan [Member] | Other Restructuring Plans [Member] | ST-Ericsson April 2012 Restructuring Plan [Member] | ST-Ericsson Cost Savings Plan [Member] | ST-Ericsson Cost Savings Plan [Member] | ST-Ericsson Restructuring Plan [Member] | |||||
Long Lived Assets [Member] | Digital Convergence Group ("DCG") [Member] | Digital Convergence Group ("DCG") [Member] | Employee Termination Benefits [Member] | Employee Termination Benefits [Member] | Employee Termination Benefits [Member] | Wireless ("WPS") [Member] | Wireless ("WPS") [Member] | Wireless ("WPS") [Member] | Wireless ("WPS") [Member] | Wireless ("WPS") [Member] | Minimum [Member] | Maximum [Member] | Employee Termination Benefits [Member] | ||||||||||||||||||||||||||||||||
Goodwill [Member] | Dedicated Intangible Assets [Member] | SWEDEN [Member] | |||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges | $69 | $109 | $1,268 | $4 | $5 | $690 | $1,234 | $21 | ' | ' | ' | ' | ' | $2 | ' | $21 | $3 | $56 | $56 | $694 | $38 | $18 | $29 | ' | $17 | $544 | ' | ' | $544 | $922 | $261 | $45 | $6 | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' |
Impairment charges on intangibles | ' | ' | 4 | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600 | 650 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual saving under restructuring plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other restructuring costs | ' | 183 | 108 | 71 | ' | ' | ' | ' | ' | 13 | ' | 11 | 5 | ' | ' | ' | 34 | ' | ' | ' | ' | ' | 8 | 8 | ' | ' | 69 | ' | ' | ' | ' | ' | ' | 88 | ' | ' | 88 | 9 | ' | ' | 9 | 64 | 20 | 26 | 6 |
Adjustments for unused provisions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination benefits for employees | ' | 178 | 84 | 43 | ' | ' | ' | ' | ' | ' | 6 | ' | 1 | ' | ' | ' | 13 | ' | ' | ' | ' | ' | 8 | ' | 69 | ' | ' | ' | ' | ' | ' | ' | ' | 88 | ' | ' | ' | 6 | 1 | 3 | ' | 60 | ' | ' | 3 |
Other related closure costs | ' | 5 | 24 | 28 | ' | ' | ' | ' | ' | ' | ' | 8 | 4 | ' | ' | 2 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | 3 | ' | 4 | ' | ' | 3 |
Expected payment | ' | 65 | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax charges incurred | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' | ' | ' | ' | 313 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected to result in pre-tax charges, maximum | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected to result in pre-tax charges, minimum | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | 270 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges and other related closure costs | ' | $147 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment_Restructuring_Charg4
Impairment, Restructuring Charges and Other Related Closure Costs - Changes to Restructuring Provisions Recorded on Consolidated Balance Sheets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges incurred | $183 | $108 | $71 |
Amounts paid | -147 | ' | ' |
St-Ericsson Restructuring Plan [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges incurred | 9 | ' | ' |
$600-650 Million Net Opex Plan [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges incurred | 88 | ' | ' |
Manufacturing Restructuring Plan [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges incurred | ' | ' | 34 |
Manufacturing Consolidation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges incurred | 8 | ' | ' |
Other Restructuring Initiatives [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges incurred | ' | 11 | 5 |
Changes to Restructuring Provisions [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | 91 | 53 | ' |
Charges incurred | 217 | 122 | ' |
Adjustments for unused provisions | -34 | -14 | ' |
Amounts paid | -147 | -73 | ' |
Currency translation effect | 1 | ' | ' |
ST-Ericsson break-up and deconsolidation | -52 | ' | ' |
Provision, ending balance | 76 | 91 | ' |
Changes to Restructuring Provisions [Member] | St-Ericsson Exit [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | 8 | ' | ' |
Charges incurred | 100 | 8 | ' |
Adjustments for unused provisions | -31 | ' | ' |
Amounts paid | -30 | ' | ' |
Currency translation effect | -1 | ' | ' |
ST-Ericsson break-up and deconsolidation | -46 | ' | ' |
Provision, ending balance | ' | 8 | ' |
Changes to Restructuring Provisions [Member] | St-Ericsson Restructuring Plan [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | 59 | 36 | ' |
Charges incurred | 12 | 96 | ' |
Adjustments for unused provisions | -3 | -11 | ' |
Amounts paid | -56 | -65 | ' |
Currency translation effect | ' | 3 | ' |
ST-Ericsson break-up and deconsolidation | -12 | ' | ' |
Provision, ending balance | ' | 59 | ' |
Changes to Restructuring Provisions [Member] | $600-650 Million Net Opex Plan [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | ' | ' | ' |
Charges incurred | 88 | ' | ' |
Adjustments for unused provisions | ' | ' | ' |
Amounts paid | -44 | ' | ' |
Currency translation effect | 2 | ' | ' |
ST-Ericsson break-up and deconsolidation | ' | ' | ' |
Provision, ending balance | 46 | ' | ' |
Changes to Restructuring Provisions [Member] | Digital Restructuring Plan [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | 12 | ' | ' |
Charges incurred | 3 | 13 | ' |
Adjustments for unused provisions | ' | ' | ' |
Amounts paid | -9 | -1 | ' |
Currency translation effect | ' | ' | ' |
ST-Ericsson break-up and deconsolidation | ' | ' | ' |
Provision, ending balance | 6 | 12 | ' |
Changes to Restructuring Provisions [Member] | Manufacturing Restructuring Plan [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | 3 | 4 | ' |
Charges incurred | ' | 2 | ' |
Adjustments for unused provisions | ' | ' | ' |
Amounts paid | -1 | -3 | ' |
Currency translation effect | ' | ' | ' |
ST-Ericsson break-up and deconsolidation | ' | ' | ' |
Provision, ending balance | 2 | 3 | ' |
Changes to Restructuring Provisions [Member] | Manufacturing Consolidation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | ' | ' | ' |
Charges incurred | 8 | ' | ' |
Adjustments for unused provisions | ' | ' | ' |
Amounts paid | ' | ' | ' |
Currency translation effect | ' | ' | ' |
ST-Ericsson break-up and deconsolidation | ' | ' | ' |
Provision, ending balance | 8 | ' | ' |
Changes to Restructuring Provisions [Member] | Other Restructuring Initiatives [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Provision, beginning balance | 9 | 13 | ' |
Charges incurred | 6 | 3 | ' |
Adjustments for unused provisions | ' | -3 | ' |
Amounts paid | -7 | -4 | ' |
Currency translation effect | ' | -3 | ' |
ST-Ericsson break-up and deconsolidation | 6 | ' | ' |
Provision, ending balance | $14 | $9 | ' |
Interest_Expense_Net_Interest_
Interest Expense, Net - Interest Expense, Net Consisted (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments Debt And Equity Securities [Abstract] | ' | ' | ' |
Income | $18 | $41 | $21 |
Expense | -23 | -76 | -46 |
Total | ($5) | ($35) | ($25) |
Interest_Expense_Net_Additiona
Interest Expense, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Investment Income [Line Items] | ' | ' | ' |
Capitalized borrowing cost | $0 | $0 | $0 |
Floating Rate Notes [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Interest income (expense), net | ' | 2 | 6 |
Floating Rate Notes [Member] | Maximum [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Interest income (expense), net | $1 | ' | ' |
Income_Tax_Income_Loss_before_
Income Tax - Income (Loss) before Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income (loss) recorded in The Netherlands | ($30) | ($33) | $54 |
Income (loss) from foreign operations | -562 | -2,104 | 282 |
Income (loss) before income tax benefit (expense) | ($592) | ($2,137) | $336 |
Income_Tax_Income_Tax_Benefit_
Income Tax - Income Tax Benefit (Expense) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
The Netherlands taxes - current | $5 | ($1) | ($11) |
Foreign taxes - current | -90 | -130 | -104 |
Current taxes | -85 | -131 | -115 |
The Netherlands taxes - deferred | ' | ' | -2 |
Foreign taxes - deferred | 48 | 80 | -64 |
Income tax benefit (expense) | ($37) | ($51) | ($181) |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Netherlands statutory income taxes rate | 25.00% | 25.00% | 25.00% |
Valuation allowance adjustments | ($83) | ($197) | ($130) |
Significant losses in countries subject to tax holidays | 57 | 320 | 131 |
Effect of the tax benefits on basic earnings per share | $0.02 | $0.04 | $0.13 |
Maximum percentage of tax reduction from tax holidays | 100.00% | 100.00% | 100.00% |
Income tax holiday expiration date | 31-Dec-22 | ' | ' |
Decrease in tax loss carryforward | 240 | ' | ' |
Decrease in valuation allowance | 258 | ' | ' |
Legal inflationary index | ' | 0.56% | ' |
Deferred tax benefit (expense) | 24 | -3 | -28 |
Cumulative amount of distributable earnings | 859 | ' | ' |
Unrecognized tax benefits | 229 | ' | ' |
Unrecognized tax benefits that if recognized would affect the annual effective tax rate | 0 | 26 | ' |
STE Deconsolidation [Member] | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Valuation allowance adjustments | $32 | ' | ' |
Income_Tax_Differences_in_Inco
Income Tax - Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income tax benefit (expense) computed at statutory rate | $148 | $534 | ($84) |
Non-deductible, non-taxable and other permanent differences, net | -2 | -81 | -2 |
Income (loss) on equity-method investments | -31 | -6 | -7 |
Valuation allowance adjustments | -83 | -197 | -130 |
Current year credits | 60 | 77 | 94 |
Other tax and credits | -42 | -17 | -32 |
Benefits from tax holidays | 18 | 38 | 113 |
Impact of uncertain tax positions | -33 | -83 | -2 |
Earnings of subsidiaries taxed at different rates | -72 | -316 | -131 |
Income tax benefit (expense) | ($37) | ($51) | ($181) |
Income_Tax_Deferred_Tax_Assets
Income Tax - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Tax loss carryforwards and investment credits | $658 | $820 |
Less unrecognized tax benefit | -229 | ' |
Tax loss carryforward net of unrecognized tax benefit | 429 | 820 |
Inventory valuation | 14 | 24 |
Impairment and restructuring charges | 63 | 61 |
Fixed asset depreciation in arrears | 58 | 75 |
Capitalized development costs | 45 | ' |
Receivables for government funding | 22 | 15 |
Tax credits granted on past capital investments | 1,131 | 1,114 |
Pension service costs | 66 | 97 |
Stock awards | 2 | ' |
Commercial accruals | 10 | 10 |
Other temporary differences | 70 | 98 |
Total deferred tax assets | 1,910 | 2,314 |
Valuation allowances | -1,454 | -1,634 |
Deferred tax assets, net | 456 | 680 |
Accelerated fixed asset depreciation | -58 | -64 |
Acquired intangible assets | -11 | -30 |
Advances of government funding | -35 | -26 |
Other temporary differences | -13 | -34 |
Deferred tax liabilities | -117 | -154 |
Net deferred income tax asset | $339 | $526 |
Income_Tax_Gross_Deferred_Tax_
Income Tax - Gross Deferred Tax Assets on Tax Loss Carryforwards and Investment Credits Expiration (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
2014 | $8 | ' |
2015 | 22 | ' |
2016 | 19 | ' |
2017 | 15 | ' |
2018 | 13 | ' |
Thereafter | 581 | ' |
Total | $658 | $820 |
Income_Tax_Reconciliation_of_B
Income Tax - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of year | $227 | $148 | $149 |
Additions based on tax positions related to the current year | 52 | 44 | 36 |
Additions for tax positions of prior years | 27 | 39 | 19 |
Reduction for tax positions of prior years | -48 | ' | -3 |
Reduction for lapse of statute of limitations | ' | ' | -50 |
Reduction due to ST-Ericsson deconsolidation | -8 | ' | ' |
Settlements | ' | -1 | ' |
Prepayment | -1 | -6 | ' |
Foreign currency translation | 6 | 3 | -3 |
Balance at end of year | $255 | $227 | $148 |
Commitments_Companys_Commitmen
Commitments - Company's Commitments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Operating leases, Total | $242 |
Operating leases, 2014 | 54 |
Operating leases, 2015 | 37 |
Operating leases, 2016 | 29 |
Operating leases, 2017 | 26 |
Operating leases, 2018 | 22 |
Operating leases, Thereafter | 74 |
Purchase obligations, Total | 434 |
Purchase obligations, 2014 | 383 |
Purchase obligations, 2015 | 48 |
Purchase obligations, 2016 | 3 |
Purchase obligations, 2017 | ' |
Purchase obligations, 2018 | ' |
Purchase obligations, Thereafter | ' |
Other obligations, Total | 481 |
Other obligations, 2014 | 155 |
Other obligations, 2015 | 120 |
Other obligations, 2016 | 100 |
Other obligations, 2017 | 80 |
Other obligations, 2018 | 24 |
Other obligations, Thereafter | 2 |
Company's commitments, Total | 1,157 |
Company's commitments, 2014 | 592 |
Company's commitments, 2015 | 205 |
Company's commitments, 2016 | 132 |
Company's commitments, 2017 | 106 |
Company's commitments, 2018 | 46 |
Company's commitments, Thereafter | 76 |
Equipment Purchase [Member] | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Purchase obligations, Total | 163 |
Purchase obligations, 2014 | 163 |
Purchase obligations, 2015 | ' |
Purchase obligations, 2016 | ' |
Purchase obligations, 2017 | ' |
Purchase obligations, 2018 | ' |
Purchase obligations, Thereafter | ' |
Foundry Purchase [Member] | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Purchase obligations, Total | 92 |
Purchase obligations, 2014 | 92 |
Purchase obligations, 2015 | ' |
Purchase obligations, 2016 | ' |
Purchase obligations, 2017 | ' |
Purchase obligations, 2018 | ' |
Purchase obligations, Thereafter | ' |
Software, Design,Technology and Licenses [Member] | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Purchase obligations, Total | 179 |
Purchase obligations, 2014 | 128 |
Purchase obligations, 2015 | 48 |
Purchase obligations, 2016 | 3 |
Purchase obligations, 2017 | ' |
Purchase obligations, 2018 | ' |
Purchase obligations, Thereafter | ' |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating lease expenses | $83 | $114 | $135 |
Contingencies_Claims_and_Legal1
Contingencies, Claims and Legal Proceedings - Additional Information (Detail) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 |
Rambus [Member] | Tessera [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' |
Loss contingency estimate of damage sought including interest | $181 | ' | ' |
Estimate of possible loss, minimum | ' | 30 | 5 |
Estimate of possible loss, maximum | ' | $50 | $8 |
Financial_Instruments_and_Risk2
Financial Instruments and Risk Management - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 |
Customer | Customer | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' |
Maximum percentage for Research and Development and Corporate costs of the total forecasted transactions | ' | 80.00% | ' | ' | ' |
Maximum percentage for manufacturing costs of forecasted transactions | ' | 70.00% | ' | ' | ' |
Maximum percentage for designated hedged item of forecasted transactions | ' | 100.00% | ' | ' | ' |
Hedge exposure to the variability of cash flows for forecasted transactions | ' | '24 months | ' | ' | ' |
Realized gain (loss) on reduction in cost of sales | ' | ($5,468) | ($5,710) | ($6,161) | ' |
Realized gain (loss) on reduction in operating expenses | ' | 17 | -32 | 52 | ' |
Ineffective portion of hedge was recorded on Other income and expenses, net | ' | 0 | 0 | 0 | ' |
Deferred gains on derivative instrument, net of tax | ' | 38 | 29 | ' | ' |
Deferred gains on derivative instrument, tax | ' | 5 | 3 | ' | ' |
Period of Accumulated other comprehensive income (loss) | ' | '12 months | '12 months | ' | ' |
Amount reclassified as Other Income and Expenses, net | ' | 0 | 0 | ' | ' |
Maximum outstanding amount per instrument with each Bank , as percentage of total | ' | ' | ' | ' | 20.00% |
Maximum outstanding percentage of counterparty risk | ' | ' | ' | ' | 15.00% |
Number of customer represented more than 10% of trade accounts receivable | ' | 0 | 0 | ' | ' |
Impairment charge on goodwill and intangible assets | ' | 56 | ' | ' | ' |
Impairment loss of intangible assets | 18 | 18 | ' | ' | ' |
Acquired Technologies [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Impairment loss of intangible assets | ' | 17 | ' | ' | ' |
Capitalized Software [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Impairment loss of intangible assets | ' | 1 | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Major customer percentage of trade accounts receivable | ' | 10.00% | 10.00% | ' | ' |
Foreign Exchange Contract [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Realized gain (loss) on reduction in cost of sales | ' | 16 | -39 | 65 | ' |
Collars [Member] | Option One [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Fair value of net assets (liabilities) | ' | 10 | ' | ' | ' |
Fair value of assets | ' | 11 | ' | ' | ' |
Fair value of liabilities | ' | 1 | ' | ' | ' |
Collars [Member] | Option Two [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Fair value of net assets (liabilities) | ' | -2 | ' | ' | ' |
Fair value of liabilities | ' | 2 | ' | ' | ' |
Forward Contracts [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Fair value of assets | ' | 33 | ' | ' | ' |
Fair value of liabilities | ' | 2 | ' | ' | ' |
Designated as Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Notional amount of Derivative Instruments | ' | 1,702 | 1,552 | 1,759 | ' |
Foreign currency forward contracts maturity term | ' | '107 days | ' | ' | ' |
Designated as Hedging Instrument [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Foreign currency forward contracts remaining terms | ' | '2 days | ' | ' | ' |
Designated as Hedging Instrument [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Foreign currency forward contracts remaining terms | ' | '11 months | ' | ' | ' |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Notional amount of Derivative Instruments | ' | $319 | $817 | $517 | ' |
Foreign currency forward contracts maturity term | ' | '40 days | ' | ' | ' |
Not Designated as Hedging Instrument [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Foreign currency forward contracts remaining terms | ' | '6 days | ' | ' | ' |
Not Designated as Hedging Instrument [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Foreign currency forward contracts remaining terms | ' | '11 months | ' | ' | ' |
Financial_Instruments_and_Risk3
Financial Instruments and Risk Management - Notional Amounts of Outstanding Derivative Instruments (Detail) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Hedge on R&D and Other Operating Expense Forecasted [Member] | Hedge on R&D and Other Operating Expense Forecasted [Member] | Hedge on R&D and Other Operating Expense Forecasted [Member] | Hedge on Manufacturing Cost Forecast [Member] | Hedge on Manufacturing Cost Forecast [Member] | Hedge on Manufacturing Cost Forecast [Member] | Hedge on Manufacturing Cost Forecast [Member] |
Foreign Exchange Forward [Member] | Currency Swap [Member] | Collars [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Currency Swap [Member] | Collars [Member] | |
EUR (€) | EUR (€) | EUR (€) | EUR (€) | SGD | EUR (€) | EUR (€) | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Notional amount | € 187 | € 49 | € 253 | € 207 | 149 | € 105 | € 348 |
Financial_Instruments_and_Risk4
Financial Instruments and Risk Management - Fair Value of Derivative Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Total Asset Derivatives | $43 | $36 |
Total Liability Derivatives | -4 | -1 |
Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Asset Derivatives | 41 | 29 |
Total Liability Derivatives | -3 | ' |
Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Asset Derivatives | 26 | 21 |
Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other Payables And Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Liability Derivatives | -1 | ' |
Designated as Hedging Instrument [Member] | Collars [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Asset Derivatives | 10 | 8 |
Designated as Hedging Instrument [Member] | Collars [Member] | Other Payables And Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Liability Derivatives | -2 | ' |
Designated as Hedging Instrument [Member] | Currency Options [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Asset Derivatives | 5 | ' |
Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Asset Derivatives | 2 | 7 |
Total Liability Derivatives | -1 | -1 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Asset Derivatives | 2 | 7 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other Payables And Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Liability Derivatives | ($1) | ($1) |
Financial_Instruments_and_Risk5
Financial Instruments and Risk Management - Effect on Consolidated Statements of Income of Derivative Instruments (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | $38 | $29 |
Gain (loss) reclassified from OCI into earnings | 33 | -71 |
Forward Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 14 | 11 |
Gain (loss) reclassified from OCI into earnings | 13 | -25 |
Forward Contracts [Member] | Selling General and Administrative [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 2 | 1 |
Gain (loss) reclassified from OCI into earnings | 2 | -2 |
Forward Contracts [Member] | Research and Development [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 10 | 9 |
Gain (loss) reclassified from OCI into earnings | 13 | -18 |
Currency Options [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 1 | ' |
Gain (loss) reclassified from OCI into earnings | ' | -1 |
Currency Options [Member] | Research and Development [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 1 | ' |
Gain (loss) reclassified from OCI into earnings | ' | -1 |
Collars [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 6 | 5 |
Gain (loss) reclassified from OCI into earnings | 3 | -13 |
Collars [Member] | Selling General and Administrative [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 1 | 1 |
Gain (loss) reclassified from OCI into earnings | 1 | -3 |
Collars [Member] | Research and Development [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) deferred OCI on derivative | 3 | 2 |
Gain (loss) reclassified from OCI into earnings | $1 | ($8) |
Financial_Instruments_and_Risk6
Financial Instruments and Risk Management - Derivative Instruments Designated as Cash Flow Hedge (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Foreign exchange forward contracts | $10 | $20 |
Forward Contracts [Member] | Other Income and Expenses Net [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Foreign exchange forward contracts | $10 | $20 |
Financial_Instruments_and_Risk7
Financial Instruments and Risk Management - Derivative Instruments Not Designated as Hedge (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | $115 | $291 |
Debt Securities Issued by the U.S. Treasury [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | 150 |
Euro Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 27 | 59 |
U.S.-Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 30 | 29 |
Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 11 | 10 |
Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 8 | 8 |
Cash Flow Hedging [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | 38 | 29 |
Not Designated as Hedging Instrument [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | 1 | 6 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 76 | 256 |
Fair Value, Inputs, Level 1 [Member] | Debt Securities Issued by the U.S. Treasury [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | 150 |
Fair Value, Inputs, Level 1 [Member] | Euro Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 27 | 59 |
Fair Value, Inputs, Level 1 [Member] | U.S.-Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 30 | 29 |
Fair Value, Inputs, Level 1 [Member] | Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 11 | 10 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | 8 | 8 |
Fair Value, Inputs, Level 1 [Member] | Cash Flow Hedging [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 39 | 35 |
Fair Value, Inputs, Level 2 [Member] | Debt Securities Issued by the U.S. Treasury [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Euro Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 2 [Member] | U.S.-Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Cash Flow Hedging [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | 38 | 29 |
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | 1 | 6 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Debt Securities Issued by the U.S. Treasury [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Euro Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 3 [Member] | U.S.-Denominated Senior Debt Floating Rate Notes Issued by Other Financial Institutions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt securities issued by foreign governments | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Cash Flow Hedging [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments designated as cash flow hedge | ' | ' |
Financial_Instruments_and_Risk8
Financial Instruments and Risk Management - Schedule of Assets (Liabilities) Measured at Fair Value on Non-Recurring Basis (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets held for sale | $16 |
Total assets | ' |
Fair Value, Inputs, Level 1 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets held for sale | ' |
Total assets | ' |
Fair Value, Inputs, Level 2 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets held for sale | ' |
Total assets | ' |
Fair Value, Inputs, Level 3 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets held for sale | 16 |
Total assets | ' |
Financial_Instruments_and_Risk9
Financial Instruments and Risk Management - Schedule of Assets (Liabilities) Measured at Fair Value on Non-Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Fair Value, Inputs, Level 3 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Beginning balance | ' |
Assets held for sale | 11 |
Sale of assets | -5 |
Deconsolidation of assets | -6 |
Veredus asset group | 16 |
Ending balance | 16 |
Amount of total losses for the period included in earnings attributable to assets still held at the reporting date | ($5) |
Recovered_Sheet2
Financial Instruments and Risk Management - Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $1,836 | $2,250 | $1,912 | $1,892 |
Long-term debt | 1,153 | 1,301 | ' | ' |
Carrying Amount [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-term debt | 1,153 | 1,301 | ' | ' |
Carrying Amount [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 1,836 | 2,250 | ' | ' |
Carrying Amount [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Bank loans (including current portion) | 1,153 | 839 | ' | ' |
Senior Bonds | ' | 462 | ' | ' |
Estimate Fair Value [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-term debt | 1,153 | 1,301 | ' | ' |
Estimate Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 1,836 | 2,250 | ' | ' |
Estimate Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Bank loans (including current portion) | 1,153 | 839 | ' | ' |
Senior Bonds | ' | $462 | ' | ' |
Recovered_Sheet3
Financial Instruments and Risk Management - Details of Securities that Currently are in Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Fair Values | ' |
Less than 12 months, Unrealized Losses | ' |
More than 12 months, Fair Values | 88 |
More than 12 months, Unrealized Losses | -1 |
Total, Fair Values | 88 |
Total, Unrealized Losses | -1 |
Senior Debt Floating Rate Notes [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Fair Values | ' |
Less than 12 months, Unrealized Losses | ' |
More than 12 months, Fair Values | 88 |
More than 12 months, Unrealized Losses | -1 |
Total, Fair Values | 88 |
Total, Unrealized Losses | ($1) |
Related_Party_Transactions_Tra
Related Party Transactions - Transactions with Significant Shareholders, their Affiliates and Other Related Parties (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
Sales & other services | $118 | $226 | $269 |
Research and development expenses | -121 | -282 | -235 |
Other purchases | -71 | -53 | -60 |
Accounts receivable | 12 | 53 | 54 |
Accounts payable | $82 | $62 | $42 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Research and development expenses | $121 | $282 | $235 |
Accounts payable | 82 | 62 | 42 |
Contributed cash amounts to ST Foundation | 0.5 | 0 | ' |
JVD [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Research and development expenses | 121 | ' | ' |
ST-Ericsson AT (JVD) [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Research and development expenses | ' | 224 | ' |
Accounts payable | ' | $44 | ' |
Segment_Information_Net_Revenu
Segment Information - Net Revenues by Product Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | $8,082 | $8,493 | $9,735 |
Sense & Power and Automotive Products (SP&A) [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 4,775 | 4,622 | 5,120 |
Embedded Processing Solutions (EPS) [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 3,269 | 3,826 | 4,566 |
Others [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | $38 | $45 | $49 |
Segment_Information_Net_Revenu1
Segment Information - Net Revenues by Product Lines (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | $8,082 | $8,493 | $9,735 |
Others [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 38 | 45 | 49 |
Sense & Power and Automotive Products (SP&A) [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 4,775 | 4,622 | 5,120 |
Sense & Power and Automotive Products (SP&A) [Member] | Automotive ("APG") [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 1,668 | 1,554 | 1,678 |
Sense & Power and Automotive Products (SP&A) [Member] | Industrial & Power Discrete ("IPD") [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 1,801 | 1,747 | 2,104 |
Sense & Power and Automotive Products (SP&A) [Member] | Analog & MEMS ("AMS") [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 1,306 | 1,320 | 1,335 |
Sense & Power and Automotive Products (SP&A) [Member] | Other SPA [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | ' | 1 | 3 |
Embedded Processing Solutions (EPS) [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 3,269 | 3,826 | 4,566 |
Embedded Processing Solutions (EPS) [Member] | Digital Convergence Group ("DCG") [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 735 | 888 | 1,084 |
Embedded Processing Solutions (EPS) [Member] | Imaging, Bi-CMOS ASIC and Silicon Photonics ("IBP") [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 462 | 437 | 722 |
Embedded Processing Solutions (EPS) [Member] | Microcontrollers, Memory & Security ("MMS") [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 1,367 | 1,147 | 1,175 |
Embedded Processing Solutions (EPS) [Member] | Wireless ("WPS") [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 704 | 1,345 | 1,552 |
Embedded Processing Solutions (EPS) [Member] | Other EPS [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | $1 | $9 | $33 |
Segment_Information_Operating_
Segment Information - Operating Income (Loss) by Product Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | ($465) | ($2,081) | $46 |
Sense & Power and Automotive Products (SP&A) [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | 270 | 409 | 757 |
Embedded Processing Solutions (EPS) [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -399 | -883 | -489 |
Product Segments [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -129 | -474 | 268 |
Others [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | ($336) | ($1,607) | ($222) |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Operating Income (Loss) of Segments to Total Operating Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | ($465) | ($2,081) | $46 |
Product Segments [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -129 | -474 | 268 |
Others [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -336 | -1,607 | -222 |
Others [Member] | Strategic and Other Research and Development Programs [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -15 | -12 | -13 |
Others [Member] | Phase-out and Start-Up Costs [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -5 | ' | -8 |
Others [Member] | Impairment, Restructuring Charges and Other Related Closure Costs [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -292 | -1,376 | -75 |
Others [Member] | Unused Capacity Charges [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | -32 | -172 | -149 |
Others [Member] | NXP Arbitration Award [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | ' | -54 | ' |
Others [Member] | Other Non-Allocated Provisions [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating income (loss) | $8 | $7 | $23 |
Segment_Information_Net_Revenu2
Segment Information - Net Revenues (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | $8,082 | $8,493 | $9,735 |
The Netherlands [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 1,860 | 1,524 | 1,928 |
France [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 289 | 189 | 172 |
Italy [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 78 | 131 | 157 |
USA [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 1,041 | 1,014 | 1,120 |
Singapore [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 3,860 | 3,784 | 4,945 |
Japan [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | 420 | 418 | 497 |
Other Countries [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenues | $534 | $1,433 | $916 |
Segment_Information_Property_P
Segment Information - Property, Plant & Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | $3,156 | $3,481 |
The Netherlands [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | 333 | 241 |
France [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | 1,063 | 1,222 |
Italy [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | 690 | 716 |
Other European Countries [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | 131 | 169 |
USA [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | 17 | 18 |
Singapore [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | 341 | 441 |
Malaysia [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | 195 | 238 |
Other Countries [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property, plant and equipment, net | $386 | $436 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventory Valuation Reserve [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | $49 | $60 | $50 |
Translation adjustment | ' | ' | ' |
Charged to costs and expenses | 58 | 95 | 103 |
Additions/ (Deductions) | -69 | -106 | -93 |
Balance at end of period | 38 | 49 | 60 |
Allowance for Trade Receivables [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 10 | 15 | 17 |
Translation adjustment | 0 | ' | ' |
Charged to costs and expenses | 2 | 1 | 1 |
Additions/ (Deductions) | -3 | -6 | -3 |
Balance at end of period | 9 | 10 | 15 |
Valuation Allowance of Deferred Tax Assets [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 1,634 | 1,514 | 1,396 |
Translation adjustment | 7 | 6 | -11 |
Charged to costs and expenses | 67 | 123 | 138 |
Additions/ (Deductions) | -254 | -9 | -9 |
Balance at end of period | $1,454 | $1,634 | $1,514 |