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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

Currency collars

   

49

253

   

105

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

location

    Fair value     

Balance sheet

location

    Fair value  

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

location

   Fair value    

Balance sheet

location

   Fair value  

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

OCI on derivative

      Location of gain (loss)
reclassified from OCI into
earnings		   

Gain (loss) reclassified from OCI into
earnings

  
     December 31,
2013		      December 31,
2012		          

December 31,

2013

    December 31,
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
Active Markets
for Identical
Assets (Level 1)		     

Significant Other
Observable
Inputs

(Level 2)

     

Significant
Unobservable
Inputs

(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
Active Markets
for Identical
Assets (Level 1)		     

Significant Other
Observable
Inputs

(Level 2)

     

Significant
Unobservable
Inputs

(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
Active Markets
for Identical
Assets (Level 1)		     

Significant Other
Observable
Inputs

(Level 2)

     

Significant
Unobservable
Inputs

(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

Sale of assets

     

 

 11

(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
Amount		      Estimated Fair
Value		      Carrying
Amount		      Estimated Fair
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
Values		      Unrealized
Losses		      Fair
Values		      Unrealized
Losses		     Fair
Values		      Unrealized
Losses		  

Senior debt floating rate notes

      —           —           88         (1 )      88         (1 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total

      —           —           88         (1 )      88         (1 )