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Income Tax (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (Loss) before Income Tax

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

		Year ended December 31, 2018				Year ended December 31, 2017				Year ended December 31, 2016
Income (loss) recorded in The Netherlands			(13	)			(17	)			(10	)
Income (loss) from foreign operations			1,402				970				211
Income (loss) before income tax benefit (expense)			1,389				953				201

Income Tax Benefit (Expense)

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

		Year ended December 31, 2018				Year ended December 31, 2017				Year ended December 31, 2016
The Netherlands Taxes — current			0				(1	)			(2	)
Foreign taxes — current			(114	)			(101	)			(69	)
Total current taxes			(114	)			(102	)			(71	)
The Netherlands Taxes — deferred			0				—				—
Foreign taxes — deferred			18				(41	)			40
Total deferred taxes			18				(41	)			40
Income tax benefit (expense)			(96	)			(143	)			(31	)
Effective tax rate			7	%			15	%			15	%

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 2018, 2017 and 2016, and the effective income tax rate are the following:

		Year ended December 31, 2018				Year ended December 31, 2017				Year ended December 31, 2016
Income tax benefit (expense) computed at statutory rate			(353	)			(238	)			(51	)
Non-deductible and non-taxable permanent differences, net			45				17				5
Income (loss) on equity-method investments			—				—				2
Valuation allowance adjustments			141				92				10
Effect on deferred taxes of changes in enacted tax rates			(62	)			(70	)			(9	)
Current year credits			43				40				34
Other tax and credits			(20	)			(36	)			(25	)
Benefits from tax holidays			135				114				49
Net impact of changes to uncertain tax positions			(16	)			(43	)			(22	)
Earnings of subsidiaries taxed at different rates			(9	)			(19	)			(24	)
Income tax benefit (expense)			(96	)			(143	)			(31	)

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:

		December 31, 2018				December 31, 2017
Tax loss carryforwards and investment credits			603				740
Less unrecognized tax benefit			(20	)			(235	)
Tax loss carryforwards net of unrecognized tax benefit			583				505
Inventory valuation			28				35
Impairment and restructuring charges			14				16
Fixed asset depreciation in arrears			35				32
Increased depreciation incentives			211				118
Capitalized development costs			108				101
Receivables for government funding			11				6
Tax credits granted on past capital investments			1,155				1,160
Pension service costs			65				65
Stock awards			7				5
Commercial accruals			12				11
Other temporary differences			26				99
Total deferred tax assets			2,255				2,153
Valuation allowances			(1,548	)			(1,502	)
Deferred tax assets, net			707				651
Accelerated fixed asset depreciation			(16	)			(13	)
Acquired intangible assets			(13	)			(10	)
Advances of government funding			(12	)			(9	)
Other temporary differences			(7	)			(6	)
Deferred tax liabilities			(48	)			(38	)
Net deferred income tax asset			659				613

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

As of December 31, 2018, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2019, as follows:

Year
2019			15
2020			15
2021			3
2022			6
2023			7
Thereafter			557
Total			603

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of 2018, 2017 and 2016 beginning and ending amounts of unrecognized tax benefits is as follows:

		December 31, 2018				December 31, 2017				December 31, 2016
Balance at beginning of year			310				238				226
Additions based on tax positions related to the current year			43				43				34
Additions for tax positions of prior years			8				13				1
Reduction for tax positions of prior years			(310	)			(9	)			(13	)
Settlements			(18	)			(2	)			—
Prepayment / Refund			8				(4	)			—
Reductions due to lapse of statute of limitations			—				—				(4	)
Foreign currency translation			(16	)			31				(6	)
Balance at end of year			25				310				238

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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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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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