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Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Notional Amounts of Outstanding Derivative Instruments

As of December 31, 2022, 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			540				986
Currency collars			500				791
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			—				247

Fair Value of Derivative Instruments

Information on fair value of derivative instruments and their location in the consolidated balance sheets as of December 31, 2022 and December 31, 2021 is presented in the table below:

				As of December 31, 2022				As of December 31, 2021
Asset Derivatives		Balance sheet classification		Fair value				Fair value
Derivatives designated as a hedge:
Foreign exchange forward contracts		Other current assets			37				2
Foreign exchange forward contracts		Other non-current assets			8				—
Currency collars		Other current assets			10				1
Currency collars		Other non-current assets			5				—
Total derivatives designated as a hedge:					60				3
Derivatives not designated as a hedge:
Foreign exchange forward contracts		Other current assets			9				3
Total derivatives not designated as a hedge:					9				3
Total Derivatives					69				6

				As of December 31, 2022				As of December 31, 2021
Liability Derivatives		Balance sheet classification		Fair value				Fair value
Derivatives designated as a hedge:
Foreign exchange forward contracts		Other payables and accrued liabilities			(23	)			(29	)
Foreign exchange forward contracts		Other non-current liabilities			(3	)			—
Currency collars		Other payables and accrued liabilities			(9	)			(13	)
Currency collars		Other non-current liabilities			(1	)			—
Total derivatives designated as a hedge:					(36	)			(42	)
Derivatives not designated as a hedge:
Foreign exchange forward contracts		Other payables and accrued liabilities			(3	)			(1	)
Total derivatives not designated as a hedge:					(3	)			(1	)
Total Derivatives					(39	)			(43	)

Effect on Consolidated Statements of Income of Derivative Instruments

The effect of derivative instruments designated as cashflow hedge on the consolidated statements of income for the year ended December 31, 2022 and December 31, 2021 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the consolidated statements of equity as of December 31, 2022 and December 31, 2021 is presented in the table below:

		Gain (loss) deferred in OCI on derivative								Location of gain (loss)		Gain (loss) reclassified from OCI into earnings
		December 31, 2022				December 31, 2021				reclassified from OCI into earnings		December 31, 2022				December 31, 2021
Foreign exchange forward    contracts			14				(20	)		Cost of sales			(83	)			11
Foreign exchange forward    contracts			2				(2	)		Selling, general and administrative			(9	)			—
Foreign exchange forward    contracts			4				(9	)		Research and development			(32	)			1
Currency collars			1				(11	)		Cost of sales			(46	)			4
Currency collars			1				(1	)		Selling, general and administrative			(6	)			1
Currency collars			1				(5	)		Research and development			(21	)			2
Total			23				(48	)					(197	)			19

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, 2022 and December 31, 2021 of derivative instruments not designated as a hedge is presented in the table below:

		Location of gain		Gain (loss) recognized in earnings
		(loss) recognized in earnings		December 31, 2022				December 31, 2021
Foreign exchange forward contracts		Other income and expenses, net			24				9
Total					24				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 of December 31, 2022:

		Fair Value Measurements using
		December 31, 2022		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		679		679		—		—
Short-term deposits		581		581		—		—
Equity securities measured at fair value through earnings		26		26		—		—
Derivative assets designated as cash flow hedge		60		—		60		—
Derivative assets not designated as cash flow hedge		9		—		9		—
Derivative liabilities designated as cash flow hedge		(36)		—		(36)		—
Derivative liabilities not designated as cash flow hedge		(3)		—		(3)		—
Contingent consideration on business acquisitions		(31)		—		—		(31)
Total		1,285		1,286		30		(31)

The table below details financial assets (liabilities) measured at fair value on a recurring basis as of December 31, 2021:

		Fair Value Measurements using
		December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Short-term deposits		291		291		—		—
Equity securities measured at fair value through earnings		29		29		—		—
Derivative assets designated as cash flow hedge		3		—		3		—
Derivative assets not designated as cash flow hedge		3		—		3		—
Derivative liabilities designated as cash flow hedge		(42)		—		(42)		—
Derivative liabilities not designated as cash flow hedge		(1)		—		(1)		—
Contingent consideration on business acquisitions		(77)		—		—		(77)
Total		206		320		(37)		(77)

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, 2022 and December 31, 2022 is presented as follows:

For liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2021 and December 31, 2021 is presented as follows:

		Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2021		123
Changes in fair value measurement		(38)
Currency translation adjustment		(8)
December 31, 2021		77
Amount of total gains (losses) for the period included in earnings attributable to liabilities    still held at the reporting date		(2)

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 of December 31, 2022 and 2021:

		2022						2021
		Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Cash equivalents(1)		1		2,996		2,996		2,883		2,883
Short-term, deposits		1		581		581		291		291
Long-term debt
– Bank loans (including current portion)		2		1,165		1,165		1,152		1,152
– Finance leases (including current portion)		2		57		57		—		—
– Senior unsecured convertible bonds issued on August 4, 2020(2)		1		1,495		1,561		1,387		1,975

(1) Cash equivalents primarily correspond to deposits at call with banks.

(2) The carrying amount as of December 31, 2022, of the senior unsecured convertible bonds as reported above, corresponds to the nominal value of the bonds, net of $5 million unamortized debt issuance costs, in compliance with the new accounting guidance. The impact of the adoption is described in Note 2 and 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, short-term deposits, 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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