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Financial Instruments and Risk Management (Tables) | 12 Months Ended
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Dec. 31, 2020
Fair Value Disclosures [Abstract] |
Notional Amounts of Outstanding Derivative Instruments | As at December 31, 2020, 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 |  |  | 215 |  |  |  | 341 |
Currency collars |  |  | 237 |  |  |  | 334 |
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 |  |  | — |  |  |  | 157 |
Fair Value of Derivative Instruments | Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2020 and December 31, 2019 is presented in the table below:
|  | As at December 31, 2020 |  |  | As at December 31, 2019 |
Asset Derivatives |  | Balance sheet location |  | Fair value |  |  | Balance sheet location |  | Fair value |
Derivatives designated as a hedge: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Other current assets |  |  | 40 |  |  | Other current assets |  |  | 4 |
Currency collars |  | Other current assets |  |  | 15 |  |  | Other current assets |  |  | 1 |
Total derivatives designated as a hedge |  |  |  |  | 55 |  |  |  |  |  | 5 |
Derivatives not designated as a hedge: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Other current assets |  |  | 10 |  |  | Other current assets |  |  | 3 |
Total derivatives not designated as a hedge: |  |  |  |  | 10 |  |  |  |  |  | 3 |
Total Derivatives |  |  |  |  | 65 |  |  |  |  |  | 8 |
|  | As at December 31, 2020 |  |  | As at December 31, 2019 |
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 |  |  | — |  |  | Other payables and accrued liabilities |  |  | (4 | )
Currency collars |  | Other payables and accrued liabilities |  |  | — |  |  | Other payables and accrued liabilities |  |  | (2 | )
Total derivatives designated as a hedge |  |  |  |  | — |  |  |  |  |  | (6 | )
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 |  |  |  |  | (2 | ) |  |  |  |  | (7 | )
Effect on Consolidated Statements of Income of Derivative Instruments | The effect on the consolidated statements of income for the year ended December 31, 2020 and December 31, 2019 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the consolidated statements of equity as at December 31, 2020 and December 31, 2019 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, 2020 |  |  | December 31, 2019 |  |  |  |  | December 31, 2020 |  |  | December 31, 2019 |
Foreign exchange forward contracts |  |  | 29 |  |  |  | (1 | ) |  | Cost of sales |  |  | (2 | ) |  |  | (36 | )
Foreign exchange forward contracts |  |  | 3 |  |  |  | — |  |  | Selling, general and administrative |  |  | 1 |  |  |  | (4 | )
Foreign exchange forward contracts |  |  | 11 |  |  |  | (1 | ) |  | Research and development |  |  | 2 |  |  |  | (15 | )
Currency collars |  |  | 11 |  |  |  | (1 | ) |  | Cost of sales |  |  | (1 | ) |  |  | (15 | )
Currency collars |  |  | 1 |  |  |  | — |  |  | Selling, general and administrative |  |  | — |  |  |  | (2 | )
Currency collars |  |  | 6 |  |  |  | — |  |  | Research and development |  |  | — |  |  |  | (7 | )
Total |  |  | 61 |  |  |  | (3 | ) |  |  |  |  | — |  |  |  | (79 | )
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, 2020 and December 31, 2019 of derivative instruments not designated as a hedge is presented in the table below:
|  | Location of gain (loss) recognized in earnings |  | Gain (loss) recognized in earnings |
|  |  |  | December 31, 2020 |  |  | December 31, 2019 |
Foreign exchange forward contracts |  | Other income and expenses, net |  |  | (13 | ) |  |  | 1 |
Total |  |  |  |  | (13 | ) |  |  | 1 |
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, 2020:
|  | Fair Value Measurements using |
|  | December 31, 2020 |  |  | 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 |  |  |  | — |  |  |  | — |
Short-term deposits |  |  | 581 |  |  |  | 581 |  |  |  | — |  |  |  | — |
Equity securities measured at fair value through earnings |  |  | 25 |  |  |  | 25 |  |  |  | — |  |  |  | — |
Derivative assets designated as cash flow hedge |  |  | 55 |  |  |  | — |  |  |  | 55 |  |  |  | — |
Derivative assets not designated as cash flow hedge |  |  | 10 |  |  |  | — |  |  |  | 10 |  |  |  | — |
Derivative liabilities designated as cash flow hedge |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Derivative liabilities not designated as cash flow hedge |  |  | (2 | ) |  |  | — |  |  |  | (2 | ) |  |  | — |
Contingent consideration on business acquisitions |  |  | (123 | ) |  |  | — |  |  |  | — |  |  |  | (123 | )
Total |  |  | 679 |  |  |  | 739 |  |  |  | 63 |  |  |  | (123 | )
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 |  |  |  | — |  |  |  | — |
Short-term deposits |  |  | 4 |  |  |  | 4 |  |  |  | — |  |  |  | — |
Equity securities measured at fair value through earnings |  |  | 23 |  |  |  | 23 |  |  |  | — |  |  |  | — |
Derivative assets designated as cash flow hedge |  |  | 5 |  |  |  | — |  |  |  | 5 |  |  |  | — |
Derivative assets not designated as cash flow hedge |  |  | 3 |  |  |  | — |  |  |  | 3 |  |  |  | — |
Derivative liabilities designated as cash flow hedge |  |  | (6 | ) |  |  | — |  |  |  | (6 | ) |  |  | — |
Derivative liabilities not designated as cash flow hedge |  |  | (1 | ) |  |  | — |  |  |  | (1 | ) |  |  | — |
Total |  |  | 161 |  |  |  | 160 |  |  |  | 1 |  |  |  | — |
Schedule of Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | For liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2020 and December 31, 2020 is presented as follows:
|  | Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2020 |  | —
Contingent consideration on business combinations |  | 117
Changes in fair value measurement |  | 1
Currency translation adjustment |  | 5
December 31, 2020 |  | 123
Amount of total losses for the period included in earnings attributable to liabilities still held at the reporting date |  | 1
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, 2020 and 2019:
|  | 2020 |  |  | 2019 |
|  | Level |  |  | Carrying Amount |  |  | Estimated Fair Value |  |  | Carrying Amount |  |  | Estimated Fair Value |
Cash equivalents (1) |  |  | 1 |  |  |  | 2,637 |  |  |  | 2,637 |  |  |  | 1,691 |  |  |  | 1,691 |
Short-term, deposits |  |  | 1 |  |  |  | 581 |  |  |  | 581 |  |  |  | 4 |  |  |  | 4 |
Long-term debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
– Bank loans (including current portion) |  |  | 2 |  |  |  | 583 |  |  |  | 583 |  |  |  | 718 |  |  |  | 718 |
– Senior unsecured convertible bonds issued on July 3, 2017 (Tranche A) (2) |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 700 |  |  |  | 1,030 |
– Senior unsecured convertible bonds issued on July 3, 2017 (Tranche B) (3) |  |  | 1 |  |  |  | 674 |  |  |  | 1,359 |  |  |  | 654 |  |  |  | 1,073 |
– Senior unsecured convertible bonds issued on August 4, 2020 (4) |  |  | 1 |  |  |  | 1,364 |  |  |  | 1,835 |  |  |  | — |  |  |  | — |
(1) Cash equivalents primarily correspond to deposits at call with banks. (2) The $1,030 million fair value of Tranche A as at December 31, 2019 represented the market price of the bonds trading on the Frankfurt Stock Exchange, which corresponded to a Level 1 fair value measurement. (3) The carrying amount of Tranche B senior unsecured convertible bonds issued on July 3, 2017 as reported above corresponds to the liability component only, since, at initial recognition, the value of the equity instrument embedded in the issued convertible bonds was recorded directly in equity. The initial recognition and subsequent measurements of the convertible bonds are further described in Note 15. The fair value represented the market price of the bonds trading on the Frankfurt Stock Exchange. (4) The carrying amount of the senior unsecured convertible bonds issued on August 4, 2020 as reported above corresponds to the liability component only, since, at initial recognition, an amount of $215 million before allocation of issuance costs and deferred tax effect was recorded directly in equity as the value of the equity instrument embedded in the issued convertible bonds. The initial recognition of the convertible bonds is further described in Note 15. The fair value represented the market price of the bonds trading on the Frankfurt Stock Exchange.
Schedule of Methodologies Used to Estimate Fair Value | The methodologies used to estimate fair value are as follows:
Components | Methodology used to estimate fair value
Debt securities classified as available-for-sale | Quoted market prices for identical instruments
Foreign exchange forward contracts, currency options and collars | Quoted market prices for similar instruments
Equity securities measured at fair value through earnings | Quoted market prices for identical instruments
Equity securities carried at cost as a measurement alternative | Valuation of the underlying investments on a new round of third-party financing or upon liquidation
Long-term debt and current portion of long-term debt | Future cash flows on a borrowing-by-borrowing basis and discounting these future cash flows using the Company's incremental borrowing rates for similar types of borrowing arrangements
Cash and cash equivalents, accounts receivable, short-term borrowings, and accounts payable | The carrying amounts reflected in the consolidated financial statements are considered as reasonable estimates of fair value due to the relatively short period of time between the origination of the instruments and their expected realization.

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