XML 47 R29.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION The Company designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, ASICs, full custom devices and semi-custom devices and ASSPs for analog, digital, and mixed-signal applications. In addition, the Company further participates in the manufacturing value chain of smartcard products, which includes the production and sale of both silicon chips and smartcards. As of December 31, 2023, the Company’s reportable segments were as follows: •Automotive and Discrete Group (ADG), comprised of dedicated automotive integrated circuits (“ICs”), and discrete and power transistor products. •Analog, MEMS and Sensors Group (AMS), comprised of analog, smart power, MEMS sensors and actuators, and optical sensing solutions. •Microcontrollers and Digital ICs Group (MDG), comprised of general-purpose microcontrollers and microprocessors, connected security products (e.g. embedded secured elements and NFC readers), memories (e.g. serial and page EEPROM) and RF and Communications products. Net revenues of “Others” include revenues from sales assembly services and other revenues. For the computation of the segments’ internal financial measurements, the Company uses certain internal rules of allocation for the costs not directly chargeable to the segments, including cost of sales, SG&A expenses and a part of R&D expenses. In compliance with the Company’s internal policies, certain costs are not allocated to the segments, but reported in “Others”. Those comprise unused capacity charges, including reduced manufacturing activity due to COVID-19 and incidents leading to power outage, impairment, restructuring charges and other related closure costs, management reorganization expenses, start-up and phase-out costs, and other unallocated income (expenses) such as: strategic or special R&D programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of other products. In addition, depreciation and amortization expense is part of the manufacturing costs allocated to the segments and is neither identified as part of the inventory variation nor as part of the unused capacity charges; therefore, it cannot be isolated in cost of sales. Finally, public grants are allocated to the Company’s segments proportionally to the incurred expenses on the sponsored projects. Wafer costs are allocated to the segments based on actual cost. From time to time, with respect to specific technologies, wafer costs are allocated to segments based on market price. The following tables present the Company’s consolidated net revenues and consolidated operating income by reportable segment. Net revenues by reportable segment:
|  | December 31, 2023 |  | December 31, 2022 |  | December 31, 2021
ADG |  | 7,848 |  |  | 5,969 |  |  | 4,350 |
AMS |  | 3,991 |  |  | 4,911 |  |  | 4,587 |
MDG |  | 5,431 |  |  | 5,228 |  |  | 3,802 |
Total net revenues of product segments |  | 17,270 |  |  | 16,108 |  |  | 12,739 |
Others |  | 16 |  |  | 20 |  |  | 22 |
Total consolidated net revenues |  | 17,286 |  |  | 16,128 |  |  | 12,761 |
Operating income by reportable segment:
|  | December 31, 2023 |  | December 31, 2022 |  | December 31, 2021
ADG |  | 2,497 |  |  | 1,469 |  |  | 512 |
AMS |  | 690 |  |  | 1,237 |  |  | 1,022 |
MDG |  | 1,838 |  |  | 1,830 |  |  | 908 |
Total operating income of product segments |  | 5,025 |  |  | 4,536 |  |  | 2,442 |
Others(1) |  | (414) |  |  | (97) |  |  | (23) |
Total consolidated operating income |  | 4,611 |  |  | 4,439 |  |  | 2,419 |
(1)Operating income (loss) of “Others” includes items such as unused capacity charges, including unloading charges due to COVID-19 and incidents leading to power outage, impairment, restructuring charges and other related closure costs, management reorganization costs, start-up and phase-out costs, and other unallocated expenses such as: strategic or special R&D programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of other products. The reconciliation of operating income of reportable segments to the total consolidated operating income is presented in the below table:
|  | December 31, 2023 |  | December 31, 2022 |  | December 31, 2021
Total operating income of reportable segments |  | 5,025 |  |  | 4,536 |  |  | 2,442 |
Impairment, restructuring charges and other related closure costs |  | — |  |  | — |  |  | (2) |
Impairment loss on intangible assets acquired through recent business combinations |  | (36) |  |  | — |  |  | — |
Start-up and phase-out costs |  | (134) |  |  | (13) |  |  | — |
Unused capacity charges |  | (120) |  |  | (22) |  |  | (16) |
Other unallocated manufacturing results |  | (94) |  |  | (57) |  |  | 1 |
Gain on sale of non-current assets |  | 4 |  |  | 2 |  |  | 3 |
Strategic and other research and development programs and other non-allocated provisions(1) |  | (34) |  |  | (7) |  |  | (9) |
Total operating loss Others |  | (414) |  |  | (97) |  |  | (23) |
Total consolidated operating income |  | 4,611 |  |  | 4,439 |  |  | 2,419 |
(1)Includes unallocated income and expenses such as certain corporate-level operating expenses and other income (costs) that are not allocated to the product segments. The following is a summary of operations by entities located within the indicated geographic areas for 2023, 2022 and 2021. Net revenues represent sales to third parties from the country in which each subsidiary is domiciled. The Company is incorporated under Dutch law with head offices located in the Netherlands while the Company’s operational office and headquarters are located in Switzerland. Long-lived assets consist of property, plant and equipment, net. A significant portion of property, plant and equipment expenditures is attributable to front-end and back-end facilities, located in the different countries in which the Company operates. As such, the Company mainly allocates capital spending resources according to geographic areas rather than along product segment areas. Net revenues
|  | December 31, 2023 |  | December 31, 2022 |  | December 31, 2021
Switzerland |  | 5,755 |  |  | 4,569 |  |  | 3,282 |
France |  | 158 |  |  | 153 |  |  | 126 |
Italy |  | 54 |  |  | 47 |  |  | 56 |
USA |  | 2,279 |  |  | 1,981 |  |  | 1,253 |
Singapore |  | 8,138 |  |  | 8,604 |  |  | 7,442 |
Japan |  | 890 |  |  | 758 |  |  | 586 |
Other countries |  | 12 |  |  | 16 |  |  | 16 |
Total net revenues |  | 17,286 |  |  | 16,128 |  |  | 12,761 |
Property, plant and equipment, net
|  | December 31, 2023 |  | December 31, 2022
Netherlands |  | 3,996 |  |  | 2,753 |
France |  | 1,837 |  |  | 1,774 |
Italy |  | 2,108 |  |  | 1,683 |
Other European countries |  | 170 |  |  | 161 |
USA |  | 59 |  |  | 52 |
Singapore |  | 1,347 |  |  | 880 |
Malaysia |  | 478 |  |  | 365 |
Other countries |  | 559 |  |  | 533 |
Total property, plant and equipment, net |  | 10,554 |  |  | 8,201 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration