Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2013

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	$	30.50
Outstanding at December 31, 2012		16,690,472		$	16.73-$27.21	$	21.00

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 Range	Weighted average exercise price	Weighted average 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, 2013		December 31, 2012		December 31, 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 Flow Hedges			Available- For-Sale Securities			Defined Benefit Pension Plan Items			Foreign Currency Translation Adjustments (“CTA”)			Total
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 reclassified from AOCI in the year ended December 31, 2013			Amounts reclassified from AOCI in the year ended December 31, 2012			Amounts reclassified from AOCI in the year ended December 31, 2011			Affected line item in the statement where net income (loss) is presented
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 vested		Options waived at 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 of grant	Outstanding as of 31.12.2011		Granted and vested		Waived at grant			Exercised		Expired/ Cancelled		Outstanding as of 31.12.2012		Exercised			Expired / Cancelled		Outstanding as of 31.12.2013		Shares corresponding 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 shares granted		Number of shares waived			Number of shares 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 as at December 31, 2012		Granted		Forfeited / waived			Cancelled on failed vesting conditions			Vested			Outstanding as at December 31, 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