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Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income (Loss) before Income Tax

Income (loss) before income tax is comprised of the following:

		Year ended December 31, 2017				Year ended December 31, 2016				Year ended December 31, 2015
Income (loss) recorded in The Netherlands			(17	)			(10	)			(18	)
Income (loss) from foreign operations			970				211				107
Income (loss) before income tax benefit (expense)			953				201				89

Income Tax Benefit (Expense)

Income tax benefit (expense) is comprised of the following:

		Year ended December 31, 2017				Year ended December 31, 2016				Year ended December 31, 2015
The Netherlands Taxes — current			(1	)			(2	)			5
Foreign taxes — current			(101	)			(69	)			(43	)
Total current taxes			(102	)			(71	)			(38	)
The Netherlands Taxes — deferred			—				—				—
Foreign taxes — deferred			(41	)			40				59
Total deferred taxes			(41	)			40				59
Income tax benefit (expense)			(143	)			(31	)			21
Effective tax rate			15	%			15	%			-24	%

Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate

The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2017, 2016 and 2015, and the effective income tax rate are the following:

		Year ended December 31, 2017				Year ended December 31, 2016				Year ended December 31, 2015
Income tax benefit (expense) computed at statutory rate			(238	)			(51	)			(23	)
Non-deductible and non-taxable permanent differences, net			17				5				(18	)
Income (loss) on equity-method investments			—				2				—
Valuation allowance adjustments			92				10				1
Effect on deferred taxes of changes in enacted tax rates			(70	)			(9	)			(15	)
Current year credits			40				34				44
Other tax and credits			(36	)			(25	)			2
Benefits from tax holidays			114				49				42
Net impact of changes to uncertain tax positions			(43	)			(22	)			8
Earnings of subsidiaries taxed at different rates			(19	)			(24	)			(20	)
Income tax benefit (expense)			(143	)			(31	)			21

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:

		December 31, 2017				December 31, 2016
Tax loss carryforwards and investment credits			740				804
Less unrecognized tax benefit			(235	)			(195	)
Tax loss carryforwards net of unrecognized tax benefit			505				609
Inventory valuation			35				29
Impairment and restructuring charges			16				20
Fixed asset depreciation in arrears			32				34
Increased depreciation incentives			118				—
Capitalized development costs			101				91
Receivables for government funding			6				7
Tax credits granted on past capital investments			1,160				1,165
Pension service costs			65				68
Stock awards			5				—
Commercial accruals			11				19
Other temporary differences			99				92
Total deferred tax assets			2,153				2,134
Valuation allowances			(1,502	)			(1,577	)
Deferred tax assets, net			651				557
Accelerated fixed asset depreciation			(13	)			(10	)
Acquired intangible assets			(10	)			(8	)
Advances of government funding			(9	)			(16	)
Other temporary differences			(6	)			—
Deferred tax liabilities			(38	)			(34	)
Net deferred income tax asset			613				523

Gross Deferred Tax Assets on Tax Loss Carryforwards and Investment Credits Expiration

As of December 31, 2017, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2018, as follows:

Year
2018			4
2019			78
2020			14
2021			3
2022			7
Thereafter			634
Total			740

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of 2017, 2016 and 2015 beginning and ending amounts of unrecognized tax benefits is as follows:

		December 31, 2017				December 31, 2016				December 31, 2015
Balance at beginning of year			238				226				313
Additions based on tax positions related to the current year			43				34				38
Additions for tax positions of prior years			13				1				—
Reduction for tax positions of prior years			(9	)			(13	)			(48	)
Settlements			(2	)			—				(48	)
Prepayment			(4	)			—				(3	)
Reductions due to lapse of statute of limitations			—				(4	)			(1	)
Foreign currency translation			31				(6	)			(25	)
Balance at end of year			310				238				226

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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-Publisher FASB
-Name Accounting Standards Codification
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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