XML 45 R63.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Notional Amounts of Outstanding Derivative Instruments

As at December 31, 2019, 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			203				333
Currency collars			243				309
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			—			143

Fair Value of Derivative Instruments

Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2019 and December 31, 2018 is presented in the table below:

As at December 31, 2019

As at December 31, 2018

Asset Derivatives

Balance sheet location

Fair value

Balance sheet location

Fair value

Derivatives designated as a hedge:

Foreign exchange forward contracts

Other current assets

4

Other current assets

2

Currency collars

Other current assets

1

Other current assets

—

Total derivatives designated as a hedge

5

2

Derivatives not designated as a hedge:

Foreign exchange forward contracts

Other current assets

3

Other current assets

3

Total derivatives not designated as a    hedge:

3

3

Total Derivatives

8

5

		As at December 31, 2019						As at December 31, 2018
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			(4	)		Other payables and accrued liabilities			(22	)
Currency collars		Other payables and accrued liabilities			(2	)		Other payables and accrued liabilities			(11	)
Total derivatives designated as a hedge					(6	)					(33	)
Derivatives not designated as a hedge:
Foreign exchange forward contracts		Other payables and accrued liabilities			(1	)		Other payables and accrued liabilities			(1	)
Total derivatives not designated as a    hedge:					(1	)					(1	)
Total Derivatives					(7	)					(34	)

Effect on Consolidated Statements of Income of Derivative Instruments

The effect on the consolidated statements of income for the year ended December 31, 2019 and December 31, 2018 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the statements of equity as at December 31, 2019 and December 31, 2018 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, 2019				December 31, 2018						December 31, 2019				December 31, 2018
Foreign exchange forward    contracts			(1	)			(18	)		Cost of sales			(36	)			(2	)
Foreign exchange forward    contracts			—				(1	)		Selling, general and administrative			(4	)			(1	)
Foreign exchange forward    contracts			(1	)			(6	)		Research and development			(15	)			(2	)
Currency collars			(1	)			(9	)		Cost of sales			(15	)			6
Currency collars			—				(1	)		Selling, general and administrative			(2	)			—
Currency collars			—				(4	)		Research and development			(7	)			—
Total			(3	)			(39	)					(79	)			1

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, 2019 and December 31, 2018 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, 2019				December 31, 2018
Foreign exchange forward contracts		Other income and expenses, net			1				9
Total					1				9

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, 2019:

		Fair Value Measurements using
		December 31, 2019				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 debt    securities			133				133				—				—
Equity securities measured at fair value through    earnings			23				23				—				—
Derivative assets designated as cash flow    hedge			5				—				5				—
Derivative liabilities designated as cash flow    hedge			(6	)			—				(6	)			—
Derivative assets not designated as cash flow    hedge			3				—				3				—
Derivative liabilities not designated as cash flow    hedge			(1	)			—				(1	)			—
Contingent consideration on business    combinations			—				—				—				—
Total			157				156				1				—

The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2018:

		Fair Value Measurements using
		December 31, 2018				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 debt    securities			330				330				—				—
Equity securities measured at fair value through    earnings			19				19				—				—
Derivative assets designated as cash flow    hedge			2				—				2				—
Derivative liabilities designated as cash flow    hedge			(33	)			—				(33	)			—
Derivative assets not designated as cash flow    hedge			3				—				3				—
Derivative liabilities not designated as cash    flow hedge			(1	)			—				(1	)			—
Contingent consideration on business    combinations			—				—				—				—
Total			320				349				(29	)			—

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, 2019 and 2018:

		2019												2018
		Level				Carrying Amount				Estimated Fair Value				Carrying Amount				Estimated Fair Value
Cash equivalents (1)			1				1,691				1,691				2,138				2,138
Long-term debt
– Bank loans (including current portion)			2				718				718				594				594
– Senior unsecured convertible bonds (2)			1				1,354				2,103				1,316				1,501

(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.  For the convertible bonds issued on July 3, 2017 and outstanding as at December 31, 2017, the carrying amount of the senior unsecured convertible bonds corresponds to the liability component only, since, at initial recognition, an amount of $242 million was recorded directly in shareholders’ equity as the value of the equity instrument embedded in the convertible instrument.  

Summary of Securities That Were in Unrealized Loss Position

There were no debt securities that were in an unrealized loss position as at December 31, 2019.  The table below details debt securities that were in an unrealized loss position as at December 31, 2018.  The securities are segregated by investment type and length of time that the individual securities have been in a continuous unrealized position as at December 31, 2018.  

		December 31, 2018
		Less than 12 months								More than 12 months								Total
Description		Fair Values				Unrealized Losses				Fair Values				Unrealized Losses				Fair Values				Unrealized Losses
U.S. Treasury Bonds			—				—				330				(2	)			330				(2	)
Total			—				—				330				(2	)			330				(2	)

X

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI http://asc.fasb.org/topic&trid=2196928

+ Details

Name:	us-gaap_DebtSecuritiesAvailableForSaleTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=118260190&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ 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 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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

+ 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

+ Details

Name:	us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4CC
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL109998890-113959

+ Details

Name:	us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration