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Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Notional Amounts of Outstanding Derivative Instruments

As of December 31, 2023, 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						445						951
Currency collars						240						640
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						—						219

Fair Value of Derivative Instruments

Information on fair value of derivative instruments and their location in the consolidated balance sheets as of December 31, 2023 and December 31, 2022 is presented in the table below:

												As of December 31, 2023						As of December 31, 2022
Asset Derivatives						Balance sheet classification						Fair value						Fair value
Derivatives designated as a hedge:
Foreign exchange forward contracts						Other current assets						46						37
Foreign exchange forward contracts						Other non-current assets						2						8
Currency collars						Other current assets						7						10
Currency collars						Other non-current assets						—						5
Total derivatives designated as a hedge:												55						60
Derivatives not designated as a hedge:
Foreign exchange forward contracts						Other current assets						5						9
Total derivatives not designated as a hedge:												5						9
Total Derivatives												60						69

												As of December 31, 2023						As of December 31, 2022
Liability Derivatives						Balance sheet classification						Fair value						Fair value
Derivatives designated as a hedge:
Foreign exchange forward contracts						Other payables and accrued liabilities						(2)						(23)
Foreign exchange forward contracts						Other non-current liabilities						—						(3)
Currency collars						Other payables and accrued liabilities						—						(9)
Currency collars						Other long-term liabilities						—						(1)
Total derivatives designated as a hedge:												(2)						(36)
Derivatives not designated as a hedge:
Foreign exchange forward contracts						Other payables and accrued liabilities						(2)						(3)
Total derivatives not designated as a hedge:												(2)						(3)
Total Derivatives												(4)						(39)

Effect on Consolidated Statements of Income of Derivative Instruments

The effect of derivative instruments designated as cash flow hedge on the consolidated statements of income for the year ended December 31, 2023 and December 31, 2022 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the consolidated statements of equity as of December 31, 2023 and December 31, 2022 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, 2023						December 31, 2022						reclassified from OCI into earnings						December 31, 2023						December 31, 2022
Foreign exchange forward    contracts						35						14						Cost of sales						1						(83)
Foreign exchange forward    contracts						4						2						Selling, general and administrative expenses						1						(9)
Foreign exchange forward    contracts						10						4						Research and development expenses						2						(32)
Currency collars						5						1						Cost of sales						—						(46)
Currency collars						1						1						Selling, general and administrative expenses						—						(6)
Currency collars						2						1						Research and development expenses						1						(21)
Total						57						23												5						(197)

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, 2023 and December 31, 2022 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, 2023

December 31, 2022

Foreign exchange forward contracts

Other income and expenses, net

2

24

Total

2

24

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, 2023:

						Fair Value Measurements using
						December 31, 2023						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						1,635						1,635						—						—
Short-term deposits						1,226						1,226						—						—
Equity securities measured at fair value through earnings						31						31						—						—
Derivative assets designated as cash flow hedge						55						—						55						—
Derivative assets not designated as cash flow hedge						5						—						5						—
Derivative liabilities designated as cash flow hedge						(2)						—						(2)						—
Derivative liabilities not designated as cash flow hedge						(2)						—						(2)						—
Contingent consideration on business acquisition						(20)						—						—						(20)
Total						2,928						2,892						56						(20)

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)

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, 2023 and December 31, 2023 is presented as follows:

						Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2023						31
Changes in fair value measurement						(12)
Currency translation adjustment						1
December 31, 2023						20
Amount of total gains (losses) for the period included in earnings attributable to liabilities    still held at the reporting date						12

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:

						Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2022						77
Changes in fair value measurement						(35)
Currency translation adjustment						(4)
Payments made						(7)
December 31, 2022						31
Amount of total gains (losses) for the period included in earnings attributable to liabilities    still held at the reporting date						35

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, 2023 and 2022:

						2023																		2022
						Level						Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
Cash equivalents (1)						1						2,879						2,879						2,996						2,996
Marketable securities						1						1,635						1,635						679						679
Short-term, deposits						1						1,226						1,226						581						581
Long-term debt
– Bank loans (including current portion)						2						1,366						1,366						1,165						1,165
– Finance leases (including current portion)						2						65						65						57						57
– Senior unsecured convertible bonds issued on August 4, 2020 (2)						1						1,496						1,814						1,495						1,561

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

(2)     The carrying amount as of December 31, 2023, of the senior unsecured convertible bonds as reported above, corresponds to the nominal value of the bonds, net of $4 million unamortized debt issuance costs. 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. For convertible bonds, the fair value represents the market price of the bonds trading on the Frankfurt Stock Exchange
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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