XML 74 R58.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Financial Instruments and Risk Management (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2016
Fair Value Disclosures [Abstract] |
Notional Amounts of Outstanding Derivative Instruments | As at December 31, 2016, 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 |  |  | 237 |  |  |  | 347 |
Currency collars |  |  | 248 |  |  |  | 387 |
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 |  |  | — |  |  |  | 123 |
Fair Value of Derivative Instruments | Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2016 and December 31, 2015 is presented in the table below:
|  | As at December 31, 2016 |  |  | As at December 31, 2015 |
Asset Derivatives |  | Balance sheet location |  | Fair value |  |  | Balance sheet location |  | Fair value |
Derivatives designated as a hedge: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Other current assets |  |  | 1 |  |  | Other current assets |  |  | 3 |
Currency collars |  | Other non-current assets |  |  | — |  |  | Other non-current assets |  |  | 1 |
Currency collars |  | Other current assets |  |  | — |  |  | Other current assets |  |  | 1 |
Total derivatives designated as a hedge |  |  |  |  | 1 |  |  |  |  |  | 5 |
Derivatives not designated as a hedge: |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Other current assets |  |  | 1 |  |  | Other current assets |  |  | 1 |
Total derivatives not designated as a hedge: |  |  |  |  | 1 |  |  |  |  |  | 1 |
Total Derivatives |  |  |  |  | 2 |  |  |  |  |  | 6 |
|  | As at December 31, 2016 |  |  | As at December 31, 2015 |
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 |  |  | (31 | ) |  | Other payables and accrued liabilities |  |  | (18 | )
Currency collars |  | Other long-term liabilities |  |  | (1 | ) |  | Other long-term liabilities |  |  | — |
Currency collars |  | Other payables and accrued liabilities |  |  | (11 | ) |  | Other payables and accrued liabilities |  |  | (6 | )
Total derivatives designated as a hedge |  |  |  |  | (43 | ) |  |  |  |  | (24 | )
Derivatives not designated as a hedge: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Other payables and accrued liabilities |  |  | (2 | ) |  | Other payables and accrued liabilities |  |  | (1 | )
Total derivatives not designated as a hedge: |  |  |  |  | (2 | ) |  |  |  |  | (1 | )
Total Derivatives |  |  |  |  | (45 | ) |  |  |  |  | (25 | )
Effect on Consolidated Statements of Income of Derivative Instruments | The effect on the consolidated statements of income for the year ended December 31, 2016 and December 31, 2015 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the statements of equity as at December 31, 2016 and December 31, 2015 of derivative instruments designated as cash flow hedge is presented in the table below:
|  | 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, 2016 |  |  | December 31, 2015 |  |  |  |  | December 31, 2016 |  |  | December 31, 2015 |
Foreign exchange forward contracts |  |  | (24 | ) |  |  | (14 | ) |  | Cost of sales |  |  | (5 | ) |  |  | (63 | )
Foreign exchange forward contracts |  |  | (2 | ) |  |  | (1 | ) |  | Selling, general and administrative |  |  | — |  |  |  | (8 | )
Foreign exchange forward contracts |  |  | (8 | ) |  |  | (4 | ) |  | Research and development |  |  | (1 | ) |  |  | (29 | )
Currency collars |  |  | (8 | ) |  |  | (3 | ) |  | Cost of sales |  |  | (2 | ) |  |  | (42 | )
Currency collars |  |  | (1 | ) |  |  | — |  |  | Selling, general and administrative |  |  | — |  |  |  | (6 | )
Currency collars |  |  | (4 | ) |  |  | (1 | ) |  | Research and development |  |  | (1 | ) |  |  | (22 | )
Total |  |  | (47 | ) |  |  | (23 | ) |  |  |  |  | (9 | ) |  |  | (170 | )
Effect on Consolidated Statements of Income of Derivative Instruments Not Designated as Hedge | The effect on the consolidated statements of income for the year ended December 31, 2016 and December 31, 2015 of derivative instruments not designated as a hedge is presented in the table below:
|  | Location of gain recognized in earnings |  | Gain recognized in earnings |
|  |  |  | December 31, 2016 |  |  | December 31, 2015 |
Foreign exchange forward contracts |  | Other income and expenses, net |  |  | (3 | ) |  |  | 11 |
Total |  |  |  |  | (3 | ) |  |  | 11 |
Schedule of Financial Assets (Liabilities) Measured at Fair Value on Recurring Basis | The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2016:
|  |  |  |  | Fair Value Measurements using |
|  | December 31, 2016 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Marketable securities – U.S. Treasury Bonds |  |  | 335 |  |  |  | 335 |  |  |  | — |  |  |  | — |
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 |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | — |
Derivative instruments designated as cash flow hedge |  |  | (43 | ) |  |  | — |  |  |  | (43 | ) |  |  | — |
Derivative instruments not designated as cash flow hedge |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | — |
Derivative instruments not designated as cash flow hedge |  |  | (2 | ) |  |  | — |  |  |  | (2 | ) |  |  | — |
Contingent consideration on business combinations |  |  | (12 | ) |  |  | — |  |  |  | — |  |  |  | (12 | )
Total |  |  | 299 |  |  |  | 354 |  |  |  | (43 | ) |  |  | (12 | )
The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2015:
|  |  |  |  | Fair Value Measurements using |
|  | December 31, 2015 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Marketable securities – U.S. Treasury Bonds |  |  | 335 |  |  |  | 335 |  |  |  | — |  |  |  | — |
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 |  |  | 5 |  |  |  | — |  |  |  | 5 |  |  |  | — |
Derivative instruments designated as cash flow hedge |  |  | (24 | ) |  |  | — |  |  |  | (24 | ) |  |  | — |
Derivative instruments not designated as cash flow hedge |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | — |
Derivative instruments not designated as cash flow hedge |  |  | (1 | ) |  |  | — |  |  |  | (1 | ) |  |  | — |
Total |  |  | 335 |  |  |  | 354 |  |  |  | (19 | ) |  |  | — |
Schedule of Assets (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | For assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2016 and December 31, 2016 is presented as follows:
|  | Fair Value Measurements using Significant Unobservable Inputs (Level 3) |
January 1, 2016 |  |  | — |
Contingent consideration on business combination |  |  | (12 | )
December 31, 2016 |  |  | (12 | )
Amount of total losses for the period included in earnings attributable to assets still held at the reporting date |  |  | — |
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, 2016 and 2015:
|  | 2016 |  |  | 2015 |
|  | Level |  |  | Carrying Amount |  |  | Estimated Fair Value |  |  | Carrying Amount |  |  | Estimated Fair Value |
Cash equivalents(1) |  |  | 1 |  |  |  | 960 |  |  |  | 960 |  |  |  | 1,099 |  |  |  | 1,099 |
Long-term debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
– Bank loans (including current portion) |  |  | 2 |  |  |  | 525 |  |  |  | 525 |  |  |  | 708 |  |  |  | 708 |
– Senior unsecured convertible bonds(2) |  |  | 1 |  |  |  | 926 |  |  |  | 1,127 |  |  |  | 904 |  |  |  | 960 |
(1) | Cash equivalents primarily correspond to deposits at call with banks.
(2) | The carrying amount of the senior unsecured convertible bonds as reported above corresponds to the liability component only, since, at initial recognition, an amount of $121 million was recorded directly in shareholders’ equity as the value of the equity instrument embedded in the issued convertible bonds.

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for cash flow hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration