Property, Plant and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

9.	PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:


December 31, 2014	Gross Cost		Accumulated Depreciation			Net Cost
Land		80		—			80
Buildings		886		(411	)		475
Facilities & leasehold improvements		2,946		(2,629	)		317
Machinery and equipment		13,491		(11,822	)		1,669
Computer and R&D equipment		410		(371	)		39
Other tangible assets		118		(109	)		9
Construction in progress		58		—			58

Total		17,989		(15,342	)		2,647


December 31, 2013	Gross Cost		Accumulated Depreciation			Net Cost
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

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 was $1 million for both the years ended December 31, 2014 and 2013.

The depreciation charge in 2014, 2013 and 2012 was $750 million, $838 million and $930 million, respectively.

Capital investment funding has totaled less than $1 million for the year ended December 31, 2014, $3 million for the year ended December 31, 2013 and $1 million for the year ended December 31, 2012. Public funding reduced depreciation charges by $4 million, $6 million and $10 million in 2014, 2013 and 2012, respectively.

For the years ended December 31, 2014, 2013 and 2012 the Company made equipment sales for cash proceeds of $9 million, $12 million and $16 million, respectively.

In July 2013, the Company announced that it would wind down certain 6-inch manufacturing lines, close its back-end plant in Longgang and consolidate back-end activities in China to Shenzhen. Following this announcement, the Longgang building and related facilities that the Company intends to dispose were reclassified to Assets held for sale for an amount of $31 million as of December 31, 2014.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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