XML 38 R22.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Long-Term Debt | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
Long-Term Debt |
14. | LONG-TERM DEBT
Long-term debt consisted of the following:
|  | December 31, 2016 |  |  | December 31, 2015 |
Funding program loans from European Investment Bank: |  |  |  |  |  |  |  |
0.38% due 2016, floating interest rate at Libor + 0.052% |  |  | — |  |  |  | 19 |
1.10% due 2016, floating interest rate at Libor + 0.477% |  |  | — |  |  |  | 26 |
1.01% due 2016, floating interest rate at Libor + 0.373% |  |  | — |  |  |  | 29 |
2.08% due 2020, floating interest rate at Libor + 1.199% |  |  | 50 |  |  |  | 63 |
2.00% due 2020, floating interest rate at Libor + 1.056% |  |  | 110 |  |  |  | 138 |
0.60% due 2020, floating interest rate at Euribor + 0.917% |  |  | 53 |  |  |  | 68 |
1.79% due 2021, floating interest rate at Libor + 0.525% |  |  | 150 |  |  |  | 180 |
1.86% due 2021, floating interest rate at Libor + 0.572% |  |  | 144 |  |  |  | 173 |
Dual tranche senior unsecured convertible bonds |  |  |  |  |  |  |  |
Zero-coupon, due 2019 (Tranche A) |  |  | 564 |  |  |  | 550 |
1.0% due 2021 (Tranche B) |  |  | 362 |  |  |  | 354 |
Other funding program loans: |  |  |  |  |  |  |  |
0.32% (weighted average), due 2017-2023, fixed interest rate |  |  | 14 |  |  |  | 4 |
Other long-term loans: |  |  |  |  |  |  |  |
1.95% (weighted average), due 2017, fixed interest rate |  |  | 1 |  |  |  | 4 |
0.82% (weighted average), due 2018, fixed interest rate |  |  | 1 |  |  |  | 1 |
0.87% (weighted average), due 2020, fixed interest rate |  |  | 2 |  |  |  | 2 |
Capital leases: |  |  |  |  |  |  |  |
20.80% (weighted average), due 2020, fixed interest rate |  |  | 0 |  |  |  | 1 |
Total long-term debt |  |  | 1,451 |  |  |  | 1,612 |
Less current portion |  |  | (117 | ) |  |  | (191 | )
Total long-term debt, less current portion |  |  | 1,334 |  |  |  | 1,421 |
Long-term debt is denominated in the following currencies:
|  | December 31, 2016 |  |  | December 31, 2015 |
U.S. dollar |  |  | 1,380 |  |  |  | 1,533 |
Euro |  |  | 71 |  |  |  | 79 |
Total |  |  | 1,451 |  |  |  | 1,612 |
The European Investment Bank’s loans denominated in Euros, but drawn in U.S. dollars, are classified as U.S. dollar-denominated debt. On July 3, 2014, the Company issued $1,000 million in principal amount of dual tranche senior unsecured convertible bonds (Tranche A for $600 million and Tranche B for $400 million), due 2019 and 2021, respectively. Tranche A bonds were issued as zero-coupon bonds while Tranche B bonds bear a 1% per annum nominal interest, payable semi-annually. The conversion price at issuance was approximately $12 dollar, equivalent to a 30% and a 31% premium, respectively, on each tranche. On October 3, 2016, the conversion price was adjusted up to 1.24% on each tranche, pursuant to a dividend adjustment symmetric provision, which corresponds to 16,491 and 16,366 equivalent shares per each $200,000 bond par value for Tranche A and Tranche B, respectively. The bonds are convertible by the bondholders if certain conditions are satisfied on a net-share settlement basis, consistent with the Company’s intended settlement method. The Company can also redeem the bonds prior to their maturity in certain circumstances. The net proceeds from the bond offering were approximately $994 million, after deducting issuance costs payable by the Company. Proceeds were allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. The liability component was measured at fair value based on a discount rate adjustment technique (income approach), which corresponds to a Level 3 fair value hierarchy measurement. The fair value of the liability component at initial recognition totalled $878 million and was estimated by calculating the present value of cash flows using a discount rate of 2.40% and 3.22% (including 1% per annum nominal interest), respectively, on each tranche, which were determined to be consistent with the market rates at the time for similar instruments with no conversion rights. An amount of $121 million, net of allocated issuance costs of $1 million, was recorded in shareholders’ equity as the value of the conversion features of the instruments. Unamortized debt discount and issuance costs totalled $74 million as at December 31, 2016 and $95 million as at December 31, 2015. Aggregate future maturities of total long-term debt (including current portion) at redemption value are as follows:
|  | December 31, |
|  | 2016 |
2017 |  |  | 117 |
2018 |  |  | 115 |
2019 |  |  | 714 |
2020 |  |  | 114 |
2021 |  |  | 461 |
Thereafter |  |  | 4 |
Total |  |  | 1,525 |
The difference between the total aggregated future maturities in the preceding table and the total carrying amount of long-term debt is due to unamortized debt discount and issuance costs on the dual tranche senior unsecured convertible bonds. Credit facilities The Company had unutilized committed medium-term credit facilities with core relationship banks totalling $558 million as of December 31, 2016. The Company also has two long-term amortizing credit facilities with the European Investment Bank as part of R&D funding programs. The first 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 $213 million remained outstanding as of December 31, 2016. The second one, 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, of which $294 million was outstanding as of December 31, 2016.

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

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration