XML 50 R34.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2016
Segment Reporting [Abstract] |
Segment Information |
| 26. | 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. During the first quarter of 2016, the internal organization changed to align with the Company’s strategic focus on Smart Driving and on Internet of Things applications. Comparative numbers were restated accordingly. The Company’s reportable segments are as follows:
| • |  | Automotive and Discrete Group (ADG), comprised of all dedicated automotive ICs (both digital and analog), and discrete and power transistor products.
| • |  | Analog and MEMS Group (AMG), comprised of low-power high-end analog ICs (both custom and general purpose) for all markets, smart power products for Industrial, Computer and Consumer markets, Touch Screen Controllers, Low Power Connectivity solutions (both wireline and wireless) for IoT, power conversion products, metering solutions for Smart Grid and all MEMS products, either sensors or actuators.
| • |  | Microcontrollers and Digital ICs Group (MDG), comprised of general purpose and secure microcontrollers, EEPROM memories, and digital ASICs as well as restructured businesses such as Set-Top-box ICs or former ST-Ericsson products.
“Others” includes all the financial values related to the Imaging Product Division (including the sensors and modules from our Time of Flight technology), Subsystems and other products, as well as items not allocated to the segments such as impairment, restructuring charges and other related closure costs, unused capacity charges, strategic or special research and development programs and other minor unallocated expenses such as: certain corporate-level operating expenses, patent claims and litigation, and other costs that are not allocated to the segments. 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 the 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. 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 part of research and development expenses. In compliance with the Company’s internal policies, certain costs are not allocated to the segments, including impairment, restructuring charges and other related closure costs, unused capacity charges, phase-out and start-up costs of certain manufacturing facilities, certain one-time corporate items, 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 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. Finally, R&D grants are allocated to the segments proportionally to the incurred R&D expenses on the sponsored projects. Wafer costs are allocated to the segments based on actual cost. From time to time, with respect to specific technologies, wafer costs are allocated to segments based on market price. The following tables present the Company’s consolidated net revenues and consolidated operating income by reportable segment.
|  | December 31, 2016 |  |  | December 31, 2015 |  |  | December 31, 2014 |
Automotive and Discrete Group (ADG) |  |  | 2,813 |  |  |  | 2,731 |  |  |  | 2,897 |
Analog and MEMS Group (AMG) |  |  | 1,584 |  |  |  | 1,671 |  |  |  | 1,877 |
Microcontrollers and Digital ICs Group (MDG) |  |  | 2,285 |  |  |  | 2,292 |  |  |  | 2,377 |
Others |  |  | 291 |  |  |  | 203 |  |  |  | 253 |
Total consolidated net revenues |  |  | 6,973 |  |  |  | 6,897 |  |  |  | 7,404 |
Operating income by reportable segment:
|  | December 31, 2016 |  |  | December 31, 2015 |  |  | December 31, 2014 |
Automotive and Discrete Group (ADG) |  |  | 211 |  |  |  | 194 |  |  |  | 279 |
Analog and MEMS Group (AMG) |  |  | 67 |  |  |  | 109 |  |  |  | 168 |
Microcontrollers and Digital ICs Group (MDG) |  |  | 108 |  |  |  | 29 |  |  |  | (14 | )
Total operating income of product segments |  |  | 386 |  |  |  | 332 |  |  |  | 433 |
Others(1) |  |  | (172 | ) |  |  | (223 | ) |  |  | (265 | )
Total consolidated operating income |  |  | 214 |  |  |  | 109 |  |  |  | 168 |
(1) | Operating result of “Others” includes operating earnings of the Imaging Product Division (including the sensors and modules from our Time of Flight technology), Subsystems and other products, as well as items not allocated to the segments, such as impairment, restructuring charges and other related closure costs, unused capacity charges, strategic or special research and development programs and other minor unallocated expenses such as: certain corporate-level operating expenses, patent claims and litigation, and other costs that are not allocated to the segments.
Reconciliation of operating income of segments to the total operating income:
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Total operating income of segments |  |  | 386 |  |  |  | 332 |  |  |  | 433 |
Impairment, restructuring charges and other related closure costs |  |  | (93 | ) |  |  | (65 | ) |  |  | (90 | )
Unallocated manufacturing results |  |  | (33 | ) |  |  | (69 | ) |  |  | (45 | )
Operating results of other businesses |  |  | (21 | ) |  |  | (82 | ) |  |  | (100 | )
Strategic and other research and development programs and other non-allocated provisions(1) |  |  | (25 | ) |  |  | (7 | ) |  |  | (30 | )
Total operating loss Others |  |  | (172 | ) |  |  | (223 | ) |  |  | (265 | )
Total consolidated operating income (loss) |  |  | 214 |  |  |  | 109 |  |  |  | 168 |
(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 2016, 2015 and 2014. 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
|  | December 31, 2016 |  |  | December 31, 2015 |  |  | December 31, 2014 |
The Netherlands |  |  | 1,751 |  |  |  | 1,667 |  |  |  | 1,905 |
France |  |  | 134 |  |  |  | 169 |  |  |  | 200 |
Italy |  |  | 58 |  |  |  | 58 |  |  |  | 61 |
USA |  |  | 990 |  |  |  | 1,039 |  |  |  | 1,003 |
Singapore |  |  | 3,699 |  |  |  | 3,606 |  |  |  | 3,831 |
Japan |  |  | 323 |  |  |  | 332 |  |  |  | 368 |
Other countries |  |  | 18 |  |  |  | 26 |  |  |  | 36 |
Total |  |  | 6,973 |  |  |  | 6,897 |  |  |  | 7,404 |
Property, plant and equipment
|  | December 31, |  |  | December 31, |
|  | 2016 |  |  | 2015 |
The Netherlands |  |  | 462 |  |  |  | 383 |
France |  |  | 520 |  |  |  | 584 |
Italy |  |  | 445 |  |  |  | 496 |
Other European countries |  |  | 84 |  |  |  | 108 |
USA |  |  | 6 |  |  |  | 8 |
Singapore |  |  | 277 |  |  |  | 276 |
Malaysia |  |  | 166 |  |  |  | 170 |
Other countries |  |  | 327 |  |  |  | 296 |
Total |  |  | 2,287 |  |  |  | 2,321 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration