Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jul. 03, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ON Semiconductor Corporation | ||
Entity Central Index Key | 1,097,864 | ||
Current Fiscal Year End | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 419,610,858 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 3,601,740,218 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 1,028.1 | $ 617.6 |
Receivables, net | 629.8 | 426.4 |
Inventories | 1,030.2 | 750.4 |
Other current assets | 181 | 97.1 |
Total current assets | 2,869.1 | 1,891.5 |
Property, plant and equipment, net | 2,159.1 | 1,274.1 |
Goodwill | 924.7 | 270.6 |
Intangible assets, net | 762.1 | 325.8 |
Deferred tax assets | 138.9 | 44.5 |
Other assets | 70.5 | 63.1 |
Total assets | 6,924.4 | 3,869.6 |
Liabilities, Non-Controlling Interest and Stockholders’ Equity | ||
Accounts payable | 434 | 337.7 |
Accrued expenses | 405 | 246.2 |
Deferred income on sales to distributors | 109.8 | 112 |
Current portion of long-term debt | 553.8 | 543.4 |
Total current liabilities | 1,502.6 | 1,239.3 |
Long-term debt | 3,068.5 | 850.5 |
Deferred tax liabilities | 288.9 | 17.3 |
Other long-term liabilities | 186.5 | 130.6 |
Total liabilities | 5,046.5 | 2,237.7 |
Commitments and contingencies | ||
2.625% Notes, Series B - Redeemable conversion feature | 32.9 | 0 |
ON Semiconductor Corporation stockholders’ equity: | ||
Common stock ($0.01 par value, 750,000,000 shares authorized, 542,317,788 and 534,134,721 shares issued, 418,941,713 and 412,039,805 shares outstanding, respectively) | 5.4 | 5.3 |
Additional paid-in capital | 3,473.3 | 3,420.3 |
Accumulated other comprehensive loss | (50.2) | (42.3) |
Accumulated deficit | (527.3) | (709.4) |
Less: Treasury stock, at cost; 123,376,075 and 122,094,916 shares, respectively | (1,078) | (1,065.7) |
Total ON Semiconductor Corporation stockholders’ equity | 1,823.2 | 1,608.2 |
Non-controlling interest in consolidated subsidiary | 21.8 | 23.7 |
Total stockholders' equity | 1,845 | 1,631.9 |
Total liabilities and stockholders' equity | $ 6,924.4 | $ 3,869.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 542,317,788 | 534,134,721 |
Common stock, shares outstanding (in shares) | 418,941,713 | 412,039,805 |
Treasury stock, shares (in shares) | 123,376,075 | 122,094,916 |
2.625% Notes, Series B [Member] | ||
Stockholders' Equity: | ||
Debt instrument, interest rate (as a percent) | 2.625% |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 3,906.9 | $ 3,495.8 | $ 3,161.8 |
Cost of revenues (exclusive of amortization shown below) | 2,610 | 2,302.6 | 2,076.9 |
Gross profit | 1,296.9 | 1,193.2 | 1,084.9 |
Operating expenses: | |||
Research and development | 452.3 | 396.7 | 366.6 |
Selling and marketing | 238 | 204.3 | 200 |
General and administrative | 230.3 | 182.3 | 180.9 |
Amortization of acquisition-related intangible assets | 104.8 | 135.7 | 68.4 |
Restructuring, asset impairments and other, net | 33.2 | 9.3 | 30.5 |
Goodwill and intangible asset impairment | 2.2 | 3.8 | 9.6 |
Total operating expenses | 1,060.8 | 932.1 | 856 |
Operating income | 236.1 | 261.1 | 228.9 |
Other (expense) income, net: | |||
Interest expense | (145.3) | (49.7) | (34.1) |
Interest income | 4.5 | 1.1 | 1.5 |
Gain on divestiture of business | 92.2 | 0 | 0 |
Loss on modification or extinguishment of debt | (6.3) | (0.4) | 0 |
Other | (0.6) | 7.7 | (4.4) |
Other (expense) income, net | (55.5) | (41.3) | (37) |
Income before income taxes | 180.6 | 219.8 | 191.9 |
Income tax (provision) benefit | 3.9 | (10.8) | 0.2 |
Net income | 184.5 | 209 | 192.1 |
Less: Net income attributable to non-controlling interest | (2.4) | (2.8) | (2.4) |
Net income attributable to ON Semiconductor Corporation | 182.1 | 206.2 | 189.7 |
Comprehensive income, net of tax: | |||
Net income | 184.5 | 209 | 192.1 |
Foreign currency translation adjustments | (8) | 0.3 | 3.5 |
Effects of cash flow hedges | 0.1 | 3.4 | (1.7) |
Effects of available-for-sale securities | 0 | (4.5) | 4.1 |
Other comprehensive (loss) income, net of tax of $0.2 million, $0.0 million and $0.2 million, respectively | (7.9) | (0.8) | 5.9 |
Comprehensive income | 176.6 | 208.2 | 198 |
Comprehensive income attributable to non-controlling interest | (2.4) | (2.8) | (2.4) |
Comprehensive income attributable to ON Semiconductor Corporation | $ 174.2 | $ 205.4 | $ 195.6 |
Net income per common share attributable to ON Semiconductor Corporation: | |||
Basic (in dollars per share) | $ 0.44 | $ 0.49 | $ 0.43 |
Diluted (in dollars per share) | $ 0.43 | $ 0.48 | $ 0.43 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 415.2 | 421.2 | 439.5 |
Diluted (in shares) | 420 | 427.8 | 443.5 |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive (loss) income, tax | $ 0.2 | $ 0 | $ 0.2 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Noncontrolling Interest in Consolidated Subsidiary [Member] |
Balance, beginning (in shares) at Dec. 31, 2013 | 515,888,942 | 75,638,654 | |||||
Balance, beginning at Dec. 31, 2013 | $ 1,523.6 | $ 5.2 | $ 3,210.8 | $ (47.4) | $ (1,105.3) | $ (572.5) | $ 32.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive (loss) income | 198 | 5.9 | 189.7 | 2.4 | |||
Stock option exercises (in shares) | 3,735,048 | ||||||
Stock option exercises | 24.9 | $ 0 | 24.9 | ||||
Shares issued pursuant to the employee stock purchase plan (in shares) | 1,346,677 | ||||||
Shares issued pursuant to the employee stock purchase plan | 10 | 10 | |||||
Restricted stock units and stock grant awards issued (in shares) | 3,644,895 | ||||||
Restricted stock units and stock grant awards issued | 0 | ||||||
Shares withheld for employee taxes on restricted stock units (in shares) | (976,786) | ||||||
Shares withheld for employee taxes on restricted stock units | (9.1) | $ (9.1) | |||||
Share-based compensation expense | $ 45.8 | 45.8 | |||||
Repurchase of common stock (in shares) | (13,900,000) | (13,900,105) | |||||
Repurchase of common stock | $ (121.2) | $ (121.2) | |||||
Dividend to non-controlling shareholder of consolidated subsidiary | 4.2 | ||||||
Dividend to non-controlling shareholder of consolidated subsidiary | (4.2) | (4.2) | |||||
Acquisition of non-controlling interest | (20.4) | (10.3) | |||||
Balance, ending (in shares) at Dec. 31, 2014 | 524,615,562 | 90,515,545 | |||||
Balance, ending at Dec. 31, 2014 | 1,647.4 | $ 5.2 | 3,281.2 | (41.5) | (915.6) | $ (702.8) | 20.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive (loss) income | 208.2 | (0.8) | 206.2 | 2.8 | |||
Stock option exercises (in shares) | 3,487,238 | ||||||
Stock option exercises | 27.1 | $ 0.1 | 27 | ||||
Shares issued pursuant to the employee stock purchase plan (in shares) | 1,729,100 | ||||||
Shares issued pursuant to the employee stock purchase plan | 14.6 | 14.6 | |||||
Restricted stock units and stock grant awards issued (in shares) | 4,302,821 | ||||||
Restricted stock units and stock grant awards issued | 0 | ||||||
Shares withheld for employee taxes on restricted stock units (in shares) | (1,226,764) | ||||||
Shares withheld for employee taxes on restricted stock units | (14.7) | $ (14.7) | |||||
Share-based compensation expense | $ 46.9 | 46.9 | |||||
Repurchase of common stock (in shares) | (30,400,000) | (30,352,607) | |||||
Repurchase of common stock | $ (348.2) | $ (348.2) | |||||
Dividend to non-controlling shareholder of consolidated subsidiary | 0 | ||||||
Warrants and bond hedge, net | (56.9) | (56.9) | |||||
Issuance of convertible notes | 107.5 | 107.5 | |||||
Balance, ending (in shares) at Dec. 31, 2015 | 534,134,721 | 122,094,916 | |||||
Balance, ending at Dec. 31, 2015 | 1,631.9 | $ 5.3 | 3,420.3 | (42.3) | (709.4) | $ (1,065.7) | 23.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive (loss) income | $ 176.6 | (7.9) | 182.1 | 2.4 | |||
Stock option exercises (in shares) | 1,800,000 | 1,849,777 | |||||
Stock option exercises | $ 14.9 | $ 0.1 | 14.8 | ||||
Shares issued pursuant to the employee stock purchase plan (in shares) | 1,813,789 | ||||||
Shares issued pursuant to the employee stock purchase plan | 15 | 15 | |||||
Restricted stock units and stock grant awards issued (in shares) | 4,519,501 | ||||||
Restricted stock units and stock grant awards issued | 0 | ||||||
Shares withheld for employee taxes on restricted stock units (in shares) | (1,281,159) | ||||||
Shares withheld for employee taxes on restricted stock units | (12.3) | $ (12.3) | |||||
Share-based compensation expense | $ 56.1 | 56.1 | |||||
Repurchase of common stock (in shares) | 0 | ||||||
Reclassification of 2.625% Notes, Series B -Convertible equity component to mezzanine equity | $ (32.9) | (32.9) | |||||
Dividend to non-controlling shareholder of consolidated subsidiary | 4.3 | ||||||
Dividend to non-controlling shareholder of consolidated subsidiary | (4.3) | ||||||
Balance, ending (in shares) at Dec. 31, 2016 | 542,317,788 | 123,376,075 | |||||
Balance, ending at Dec. 31, 2016 | $ 1,845 | $ 5.4 | $ 3,473.3 | $ (50.2) | $ (527.3) | $ (1,078) | $ 21.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 184.5 | $ 209 | $ 192.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 364.1 | 357.6 | 268.8 |
Loss (gain) on sale or disposal of fixed assets | 1.5 | (3.9) | (1.4) |
Gain on divestiture of business | (92.2) | 0 | 0 |
Loss on debt extinguishment or modification | 6.3 | 0.4 | 0 |
Amortization of debt discount and issuance costs | 12 | 2.8 | 1.4 |
Write-down of excess inventories | 66.2 | 52.4 | 40.6 |
Non-cash share-based compensation expense | 56.1 | 46.9 | 45.8 |
Non-cash interest on convertible notes | 26 | 17.5 | 7 |
Non-cash asset impairment charges | 0.5 | 0.2 | 6.5 |
Non-cash goodwill and intangible asset impairment charges | 2.2 | 3.8 | 9.6 |
Payments for term debt modification | (26.4) | 0 | 0 |
Change in deferred taxes | (38.1) | (9.2) | (18.8) |
Other | (4.6) | (2.8) | 1.8 |
Changes in assets and liabilities (exclusive of the impact of acquisitions): | |||
Receivables | 28.1 | (11.3) | 20.5 |
Inventories | (7.9) | (72.5) | (59) |
Other assets | (24.9) | (10.2) | (14.1) |
Accounts payable | 42.4 | (32.2) | (17.3) |
Accrued expenses | (15.3) | (16.3) | (11.3) |
Deferred income on sales to distributors | 0.1 | (53.1) | 24.6 |
Other long-term liabilities | 0.6 | (8.5) | (15.5) |
Net cash provided by operating activities | 581.2 | 470.6 | 481.3 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (210.7) | (270.8) | (204.3) |
Proceeds from sales of property, plant and equipment | 0.4 | 11.1 | 1.5 |
Deposits (made) utilized for purchases of property, plant and equipment | (2.2) | (1.4) | 2.6 |
Purchase of businesses, net of cash acquired | (2,284) | (31.3) | (423.7) |
Cash placed in escrow | (67.7) | 0 | (40) |
Cash received from escrow | 23.8 | 20.4 | 0 |
Purchase of cost method investment | 0 | 0 | (5.8) |
Proceeds from divestiture of business | 104 | 0 | 0 |
Proceeds from sale of available-for-sale securities | 0 | 5.5 | 0 |
Proceeds from sale of held-to-maturity securities | 0 | 2.8 | 116.9 |
Purchases of held-to-maturity securities | 0 | (0.8) | (12.8) |
Other | 1.8 | 0 | 0 |
Net cash used in investing activities | (2,434.6) | (264.5) | (565.6) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock under the ESPP | 15 | 14.6 | 10 |
Proceeds from exercise of stock options | 14.9 | 27.1 | 24.9 |
Payments of tax withholding for restricted shares | (12.3) | (14.7) | (9.1) |
Repurchase of common stock | 0 | (348.2) | (121.8) |
Proceeds from debt issuance | 2,586.9 | 816.5 | 346.4 |
Purchases of convertible note hedges | 0 | (108.9) | 0 |
Proceeds from issuance of warrants | 0 | 52 | 0 |
Payments of debt issuance and other financing costs | (6.8) | (20.4) | 0 |
Repayment of long-term debt | (313.8) | (495.5) | (90.6) |
Payment of capital lease obligations | (14.9) | (22.3) | (43.8) |
Acquisition of non-controlling interest | 0 | 0 | (20.4) |
Dividend to non-controlling shareholder of consolidated subsidiary | (4.3) | 0 | (4.2) |
Net cash (used in) provided by financing activities | 2,264.7 | (99.8) | 91.4 |
Effect of exchange rate changes on cash and cash equivalents | (0.8) | (0.4) | (4.9) |
Net increase in cash and cash equivalents | 410.5 | 105.9 | 2.2 |
Cash and cash equivalents, beginning of period | 617.6 | 511.7 | 509.5 |
Cash and cash equivalents, end of period | $ 1,028.1 | $ 617.6 | $ 511.7 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Note 1: Background and Basis of Presentation ON Semiconductor Corporation (“ON Semiconductor”), together with its wholly and majority-owned subsidiaries (the “Company”), prepares its financial statements in accordance with generally accepted accounting principles in the United States of America. During the third quarter of 2016, the Company realigned its operating and reporting segments into the following three operating and reporting segments: Power Solutions Group , Analog Solutions Group and Image Sensor Group. The operating results of the System Solutions Group, which was previously the Company’s fourth operating and reporting segment, and which did not have goodwill, are now assigned among the three current operating and reporting segments, and previously reported information has been presented to reflect the current three operating and reporting segments. The Company’s Power Solutions Group and Analog Solutions Group operating and reporting segments include the business acquired in the Fairchild Transaction. Acquisition of Fairchild On September 19, 2016, the Company completed its acquisition of Fairchild Semiconductor International, Inc., a Delaware corporation (“Fairchild”), pursuant to the Agreement and Plan of Merger (the “Fairchild Agreement”) with each of Fairchild and Falcon Operations Sub, Inc., a Delaware corporation and the Company’s wholly-owned subsidiary (“Merger Sub”), which provided for the acquisition of Fairchild by the Company (the “Fairchild Transaction”). Fairchild is a semiconductor company that delivers energy-efficient, easy-to-use and value-added semiconductor solutions for power and mobile designs. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2: Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, including its wholly-owned and majority-owned subsidiaries. Investments in companies that represent less than 20% of the related ownership interests where the Company does not have the ability to exert significant influence are accounted for as cost method investments. All material intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Significant estimates have been used by management in conjunction with the following: (i) measurement of valuation allowances relating to trade receivables, inventories and deferred tax assets; (ii) estimates of future payouts for customer incentives and allowances, warranties, and restructuring activities; (iii) assumptions surrounding future pension obligations; (iv) fair values of share-based compensation and of financial instruments (including derivative financial instruments); (v) evaluations of uncertain tax positions; (vi) estimates and assumptions used in connection with business combinations; and (vii) future cash flows used to assess and test for impairment of goodwill and long-lived assets, if applicable. Actual results could differ from these estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity to the Company of three months or less to be cash equivalents. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks generally exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, as a result of the quality of the respective financial institutions, management believes these deposits bear minimal risk. Short-Term Investments Short-term investments include held-to-maturity securities and available-for-sale securities. Held-to-maturity securities have an original maturity to the Company between three months and one year and are carried at amortized cost as it is the intent of the Company to hold these securities until maturity. Available-for-sale securities are stated at fair value and the net unrealized gains or losses on available-for-sale securities are recorded as a component of accumulated other comprehensive loss, net of income taxes. Allowance for Doubtful Accounts In the normal course of business, the Company provides non-collateralized credit terms to its customers. Accordingly, the Company maintains an allowance for doubtful accounts for probable losses on uncollectible accounts receivable. The Company routinely analyzes accounts receivable and considers history, customer creditworthiness, facts and circumstances specific to outstanding balances, current economic trends, and payment term changes when evaluating adequacy of the allowance for doubtful accounts. Inventories Inventories are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market. General market conditions, as well as the Company's design activities, can cause certain of its products to become obsolete. The Company writes down excess and obsolete inventories based upon a regular analysis of inventory on hand compared to historical and projected end-user demand. These write downs can influence results from operations. For example, when demand for a given part falls, all or a portion of the related inventory that is considered to be in excess of anticipated demand, is written down, impacting cost of revenues and gross profit. If demand recovers and the parts previously written down are sold, a higher than normal margin will generally be recognized. However, the majority of product inventory that has been previously written down is ultimately discarded. Although the Company does sell some products that have previously been written down, such sales have historically been consistently immaterial and the related impact on the Company's gross profit has also been immaterial. Property, Plant and Equipment Property, plant and equipment are recorded at cost and are depreciated over estimated useful lives of 30 - 50 years for buildings and 3 - 20 years for machinery and equipment using straight-line methods. Expenditures for maintenance and repairs are charged to operations in the period in which the expense is incurred. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. The Company evaluates the recoverability of the carrying amount of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. A potential impairment charge is evaluated when the undiscounted expected cash flows derived from an asset group are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset group exceeds its fair value and are recognized in operating results. Judgment is used when applying these impairment rules to determine the timing of the impairment test, the undiscounted cash flows used to assess impairments and the fair value of the asset group. Business Combination Purchase Price Allocation The allocation of the purchase price of business combinations is based on management estimates and assumptions, which utilize established valuation techniques appropriate for the high-technology industry. These techniques include the income approach, cost approach or market approach, depending upon which approach is the most appropriate based on the nature and reliability of available data. The income approach is predicated upon the value of the future cash flows that an asset is expected to generate over its economic life. The cost approach takes into account the cost to replace (or reproduce) the asset and the effects on the asset's value of physical, functional and/or economic obsolescence that has occurred with respect to the asset. The market approach is used to estimate value from an analysis of actual transactions or offerings for economically comparable assets available as of the valuation date. Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the Company's acquisitions. The Company evaluates its goodwill for potential impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company's impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this qualitative assessment indicates it is more likely than not the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company follows a two-step quantitative goodwill impairment test to determine if goodwill is impaired. The first step of the goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. Determining the fair value of the Company's reporting units is subjective in nature and involves the use of significant estimates and assumptions, including projected net cash flows, discount and long-term growth rates. The Company determines the fair value of its reporting units based on an income approach, whereby the fair value of the reporting unit is derived from the present value of estimated future cash flows. The assumptions about estimated cash flows include factors such as future revenues, gross profits, operating expenses, and industry trends. The Company considers historical rates and current market conditions when determining the discount and long-term growth rates to use in its analysis. The Company considers other valuation methods, such as the cost approach or market approach, if it is determined that these methods provide a more representative approximation of fair value. Changes in these estimates based on evolving economic conditions or business strategies could result in material impairment charges in future periods. The Company bases its fair value estimates on assumptions it believes to be reasonable. Actual results may differ from those estimates. The Company has determined that its divisions, which are components of its operating segments, constitute reporting units for purposes of allocating and testing goodwill. The Company’s divisions are one level below the operating segments, constituting individual businesses, with the Company’s segment management conducting regular reviews of the operating results. The first step of the goodwill impairment test compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets associated with that unit, goodwill is not considered impaired and the Company is not required to perform further testing. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the goodwill impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If, during this second step, the Company determines that the carrying value of a reporting unit’s goodwill exceeds its implied value, the Company would record an impairment loss equal to the difference. Intangible Assets The Company's acquisitions have resulted in intangible assets consisting of values assigned to customer relationships; patents; developed technology; IPRD; and trademarks. These are stated at cost less accumulated amortization, are amortized over their estimated useful lives, and are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset group containing these assets may not be recoverable. A potential impairment charge is evaluated when the undiscounted expected cash flows derived from an asset group are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset group exceeds its fair value and are recognized in operating results. Judgment is used when applying these impairment rules to determine the timing of the impairment test, the undiscounted cash flows used to assess impairments and the fair value of an asset group. The dynamic economic environment in which the Company operates and the resulting assumptions used to estimate future cash flows impact the outcome of these impairment tests. Treasury Stock Treasury stock is recorded at cost, inclusive of fees, commissions and other expenses, when outstanding common shares are repurchased by the Company, including when outstanding shares are withheld to satisfy tax withholding obligations in connection with certain shares pursuant to restricted stock units under the Company's share-based compensation plans. Debt Issuance Costs Debt issuance costs for line-of-credit agreements, including the Company's senior revolving credit facility, are capitalized and amortized over the term of the underlying agreements using the effective interest method. Amortization of these debt issuance costs is included in interest expense while the unamortized balance is included in other assets. Debt issuance costs for the Company's convertible notes are recorded as a direct deduction from the carrying amount of the convertible notes, consistent with debt discounts, and are amortized over the term of the convertible notes using the effective interest method. Amortization of these debt issuance costs is included in interest expense. Revenue Recognition The Company generates revenue from sales of its semiconductor products to OEMs, electronic manufacturing service providers and distributors. The Company also generates revenue, to a much lesser extent, from manufacturing and design services provided to customers. Revenue is recognized when persuasive evidence of an arrangement exists, title and risk of loss pass to the customer (generally upon shipment), the price is fixed or determinable and collectability is reasonably assured. Revenues are recorded net of provisions for related sales returns and allowances. For products sold to distributors who are entitled to returns and allowances (generally referred to as “ship and credit rights” within the semiconductor industry), the Company recognizes the related revenue and cost of revenues depending on if the sale originated through an ON Semiconductor or legacy Fairchild systems and processes. If the sale originated through an ON Semiconductor system and process, revenue is recognized when ON Semiconductor is informed by the distributor that it has resold the products to the end-user. As a result of the Company’s inability to reliably estimate up front the effects of the returns and allowances with these distributors for sales originating through an ON Semiconductor system and process, the Company defers the related revenue and gross margin on sales to these distributors until it is informed by the distributor that the products have been resold to the end-user, at which time the ultimate sales price is known. Legacy Fairchild’s systems and processes enable the Company to estimate up front the effects of returns and allowances provided to the distributors and thereby record the net revenue at the time of sale related to a legacy Fairchild system and process. Although payment terms vary, most distributor agreements require payment within 30 days. For products sold to non-distributors, sales returns and allowances are estimated based on historical experience. The Company’s OEM customers do not have the right to return products, other than pursuant to the provisions of the Company’s standard warranty. Sales to distributors, however, are typically made pursuant to agreements that provide return rights with respect to discontinued or slow-moving products. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenues are recognized, and are netted against revenues. The Company reviews warranty and related claims activities and records provisions, as necessary. Freight and handling costs are included in cost of revenues and are recognized as period expense when incurred. Taxes assessed by government authorities on revenue-producing transactions, including value-added and excise taxes, are presented on a net basis (excluded from revenues) in the statement of operations. Warranty Reserves and Discounts The Company generally warrants that products sold to its customers will, at the time of shipment, be free from defects in workmanship and materials and conform to specifications. The Company's standard warranty extends for a period that is the greater of (i) two years from the date of shipment or (ii) the period of time specified in the customer's standard warranty (provided that the customer's standard warranty is stated in writing and extended to purchasers at no additional charge). At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with its sales, recorded as a component of cost of revenues. In addition, the Company also offers cash discounts to certain customers for payments received within an agreed upon time, generally ten days after shipment. The Company records a reserve for cash discounts as a reduction to accounts receivable and a reduction to revenues, based on experience with each customer. Research and Development Costs Research and development costs are expensed as incurred. Share-Based Compensation Share-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee's requisite service period. The Company has outstanding awards with performance, time and service-based vesting provisions. Income Taxes Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for those deferred tax assets for which management cannot conclude that it is more likely than not that such deferred tax assets will be realized. In determining the amount of the valuation allowance, estimated future taxable income, as well as feasible tax planning strategies for each taxing jurisdiction are considered. If the Company determines it is more likely than not that all or a portion of the remaining deferred tax assets will not be realized, the valuation allowance will be increased with a charge to income tax expense. Conversely, if the Company determines it is more likely than not to be able to utilize all or a portion of the deferred tax assets for which a valuation allowance has been provided, the related portion of the valuation allowance will be recorded as a reduction to income tax expense. The Company recognizes and measures benefits for uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that is it more likely than not that the tax positions will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions that are more likely than not to be sustained upon audit, the second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Significant judgment is required to evaluate uncertain tax positions. Evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of tax audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense in the period in which the change is made, which could have a material impact to the Company's effective tax rate. Foreign Currencies Most of the Company's foreign subsidiaries conduct business primarily in U.S. dollars and, as a result, utilize the dollar as their functional currency. For the remeasurement of financial statements of these subsidiaries, assets and liabilities in foreign currencies that are receivable or payable in cash are remeasured at current exchange rates, while inventories and other non-monetary assets in foreign currencies are remeasured at historical rates. Gains and losses resulting from the remeasurement of such financial statements are included in the operating results, as are gains and losses incurred on foreign currency transactions. The majority of the Company's Japanese subsidiaries utilize Japanese Yen as their functional currency. The assets and liabilities of these subsidiaries are translated at current exchange rates, while revenues and expenses are translated at the average rates in effect for the period. The related translation gains and losses are included in other comprehensive income or loss within the Consolidated Statements of Operations and Comprehensive Income. Defined Benefit Pension Plans The Company maintains defined benefit pension plans, covering certain of its foreign employees. For financial reporting purposes, net periodic pension costs and pension obligations are determined based upon a number of actuarial assumptions, including discount rates for plan obligations, assumed rates of return on pension plan assets and assumed rates of compensation increases for employees participating in plans. These assumptions are based upon management's judgment and consultation with actuaries, considering all known trends and uncertainties. Contingencies The Company is involved in a variety of legal matters, intellectual property matters, environmental, financing and indemnification contingencies that arise in the normal course of business. Based on information available, management evaluates the relevant range and likelihood of potential outcomes and records the appropriate liability when the amount is deemed probable and reasonably estimable. Fair Value Measurement The Company measures certain of its financial and non-financial assets at fair value by using a fair value hierarchy that prioritizes certain inputs into individual fair value measurement approaches. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities; • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Companies may choose to measure certain financial instruments and certain other items at fair value. Unrealized gains and losses on items for which the fair value option has been elected must be reported in earnings. The Company has elected not to carry any of its debt instruments at fair value. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements ASU’s Adopted: ASU No. 2015-17 - “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) In November 2015, the FASB issued ASU 2015-17, which requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. ASU 2015-17 is effective in fiscal years beginning after December 15, 2016. Early adoption is permitted on either a prospective or retrospective basis. The Company elected early adoption as of the interim period beginning October 3, 2015, effective for the annual period ended December 31, 2015, and selected the prospective application. Prior periods have not been retrospectively adjusted. ASU 2015-05 - “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”) In April 2015, the FASB issued ASU 2015-05, which provides guidance regarding the accounting for fees paid by a customer in cloud computing arrangements. ASU 2015-05 amended ASC 350-40-25-16 by removing the language that stated licenses for internal-use software from third parties should be analogized to the subtopic 840-10 Leases. If a cloud computing arrangement includes the transfer of a software license, then the customer would account for the payment of fees as an acquisition of software. If there is no software license, the payment of fees would be accounted for as a service contract. This ASU is effective in fiscal years beginning after December 15, 2015. An entity can elect to adopt the amendments either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. The Company adopted ASU 2015-05 as of the quarter ended April 1, 2016 and selected the prospective application. There was no material impact to the financial statements. ASU No. 2015-03 - “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”) and ASU No. 2015-15 - “Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”) In April 2015, the FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new standard is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. In August 2015, the FASB issued ASU 2015-15, which clarified that ASU 2015-03 does not address debt issuance costs related to line-of-credit agreements and stated that the SEC staff would not object to the deferral and presentation of debt issuance costs as an asset, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement, consistent with existing guidance. The Company elected early adoption of ASU 2015-03 as of the year ended December 31, 2015, applicable to debt issuance costs related to its convertible notes, and retrospectively adjusted certain prior year amounts to reflect the effects of applying the new guidance. Pursuant to ASU 2015-15, debt issuance costs relating to the Company’s revolving credit facility have been deferred and are included in other assets on the Company’s Consolidated Balance Sheet. ASU No. 2014-15 - “Presentation of Financial Statements—Going Concern (Subtopic 205-40) (“ASU 2014-15”) In August 2014, the FASB issued ASU 2014-15, which requires management to evaluate, in connection with financial statement preparation for each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued, and to provide related disclosures. ASU 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The adoption of this standard did not have a material impact to the financial statements. ASUs Pending Adoption: ASU No. 2016-18 - “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2016-18”) In November 2016, the FASB issued ASU 2016-18, which requires entities to include in their cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The ASU does not define the terms “restricted cash” and “restricted cash equivalents.” The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-18 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-16 - “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”) In October 2016, the FASB issued ASU 2016-16, which eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-16 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-15 - “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”) In August 2016, the FASB issued ASU 2016-15, which changes how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-15 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-09 - “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) In March 2016, the FASB issued ASU 2016-09, which is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company has not elected early adoption as of the year ended December 31, 2016, however expects the adoption of the standard to have a material impact on its consolidated financial statements based on excess tax deductions from employee equity exercises that are part of net operating losses as of December 31, 2016. See Note 15: "Income Taxes" for further information. ASU No. 2016-02 - “Leases (Topic 842)” (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02, which amends the accounting treatment for leases. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-02 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-01 - “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) In January 2016, the FASB issued ASU No. 2016-01, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-01 may have on its consolidated financial statements. ASU No. 2015-11 - “Inventory (Topic 330): Simplifying the Measurement of Inventory” (“ASU 2015-11”) In July 2015, the FASB issued ASU 2015-11, which requires that an entity should measure in-scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the impact of the adoption of ASU 2015-11 to be material on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2014-09 - “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), ASU No. 2015-14 - “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), ASU No. 2016-08 - “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” (“ASU 2016-08”), ASU No. 2016-10 - “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”) ASU No. 2016-12 - “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”) and ASU No. 2016-20 - “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”) In May 2014, the FASB issued ASU 2014-09, which applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards, superseding the existing revenue recognition requirements in ASC Topic 605 “Revenue Recognition.” Pursuant to ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange, as applied through a multi-step process to achieve that core principle. Subsequently, the FASB approved a deferral included in ASU 2015-14 that permits public entities to apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein, and that would also permit public entities to elect to adopt the amendments as of the original effective date as applicable to reporting periods beginning after December 15, 2016. The new guidance allows for the amendment to be applied either retrospectively to each prior reporting period presented or retrospectively as a cumulative-effect adjustment as of the date of adoption. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, which improves certain aspects of ASC Topic 606 “Revenue from Contracts with Customers.” In December 2016, the FASB issued ASU 2016-20, which improves certain aspects of ASC Topic 606 “Revenue from Contracts with Customers.”The effective date and transition requirements for ASU 2016-08, ASU 2016-10 ASU 2016-12 and ASU 2016-20 are the same as the effective date and transition requirements of ASU 2014-09. As described in Note 2: ''Significant Accounting Policies'' the Company defers the revenue and cost of revenues on sales to certain distributors until it is informed by the distributor that the distributor has resold the products to the end customer. Upon adoption of ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, the Company believes one of the more significant impacts will be that it is no longer permitted to defer revenue until sale by the distributor to the end customer, but rather, will be required to estimate the effects of returns and allowances provided to distributors and record revenue at the time of sale to the distributor. In anticipation of the adoption of the new standards, the Company has been developing its internal systems, processes and controls for making the required estimates. While the Company previously intended to early adopt the standard on January 1, 2017, the Company is still evaluating other aspects of the standard (non ship & credit related) and decided it will adopt the standard on January 1, 2018. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 4: Acquisitions and Divestitures The Company pursues strategic acquisitions from time to time to leverage its existing capabilities and further build its business. Such acquisitions are accounted for as business combinations pursuant to ASC 805 " Business Combinations. " Accordingly, acquisition costs are not included as components of consideration transferred, and instead are accounted for as expenses in the period in which the costs are incurred. During the years ended December 31, 2016 and 2015 , the Company incurred acquisition-related costs of approximately $25.8 million and $3.5 million , respectively, which are included in operating expenses on the Company's consolidated statements of operations and comprehensive income. 2016 Acquisition On September 19, 2016, the Company acquired 100% of Fairchild Semiconductor International, Inc. ("Fairchild"), whereby Fairchild became a wholly-owned subsidiary of the Company. The purchase price totaled $2,532.2 million in cash and was funded by the Company's borrowings against its Term Loan "B" Facility and a partial draw of the Revolving Credit Facility, as well as with cash on hand. See Note 8: ''Long-Term Debt'' for additional information. The Company acquired Fairchild to expand its product offerings and to create a power semiconductor leader with strong capabilities in a rapidly consolidating semiconductor industry. The acquisition of Fairchild adds highly complementary product lines, allowing the Company to offer the full spectrum of high, medium and low voltage products and expands ON Semiconductor's footprint in wireless communication products, particularly in high efficiency power conversions and USB Type C communication and power delivery. The acquisition also provides the Company with a platform to expand its profitability in a highly fragmented industry. For the period from September 19, 2016 to December 31, 2016 the Company recognized revenue of $411.5 million and net loss of $34.5 million relating to Fairchild, which included charges for the amortization of fair market value step-up of inventory of $67.5 million , the amortization of acquired intangible assets, and restructuring. The following table presents the allocation of the purchase price of Fairchild for the assets acquired and liabilities assumed based on their fair values (in millions): Initial Estimate Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 255.0 $ — $ 255.0 Receivables 227.3 — 227.3 Inventories 342.3 — 342.3 Other current assets 59.3 1.7 61.0 Property, plant and equipment 813.5 112.3 925.8 Goodwill 733.6 (77.5 ) 656.1 Intangible assets (excluding IPRD) 423.4 (9.8 ) 413.6 In-process research and development 102.4 31.8 134.2 Other non-current assets 17.7 (4.6 ) 13.1 Total assets acquired 2,974.5 53.9 3,028.4 Accounts payable 79.4 — 79.4 Other current liabilities 160.1 8.0 168.1 Deferred tax liabilities 167.6 45.9 213.5 Other non-current liabilities 35.2 — 35.2 Total liabilities assumed 442.3 53.9 496.2 Net assets acquired/purchase price $ 2,532.2 $ — $ 2,532.2 During the fourth quarter, the Company recorded certain measurement period adjustments to the initial estimated purchase price allocation. These adjustments resulted in an immaterial impact to depreciation and amortization expenses during the three months ended September 30, 2016 as Fairchild was in the Company's combined results for only 12 days. These adjustments were among those expected to be made to the initial estimated purchase price allocation based on information obtained during the measurement period and are properly reflected in the Company’s consolidated balance sheet as of December 31, 2016 . Acquired intangible assets include $134.2 million of IPRD assets, which are to be amortized over the useful life upon successful completion of the related projects. The value assigned to IPRD was determined by considering the importance of products under development to the overall development plan, estimating costs to develop the purchased IPRD into commercially viable products, estimating the resulting net cash flows from the projects when completed and discounting the net cash flows to their present value. The Company utilized a discount rate of 14.5% and cash flows from its significant products are expected to commence from 2017 and beyond. Other acquired intangible assets of $413.6 million are developed technology of $272.7 million ( eleven year weighted-average useful life), customer relationships of $135.5 million ( fifteen year useful life) and backlog of $3.0 million ( six month useful life). The total weighted average amortization period for the acquired intangibles is 12.1 years. The acquisition produced $656.1 million of goodwill of which $366.1 million was assigned to the Power Solutions Group and $289.9 million to the Analog Solutions Group. Goodwill is attributable to a combination of Fairchild's assembled workforce, expectation regarding a more meaningful engagement by the customers due to the scale of the combined Company, and other synergies. Goodwill arising from the Fairchild acquisition is not deductible for tax purposes. During the year ended December 31, 2016 , the Company incurred $24.7 million in acquisition related costs for the Fairchild acquisition. These costs were recorded in general and administrative expense in the Consolidated Statements of Operations. See Note 12: ''Commitments and Contingencies'' for information on contingent liabilities assumed from the acquisition of Fairchild. Pro-Forma Results of Operations The following unaudited pro-forma consolidated results of operations for the years ended December 31 2016 and 2015 have been prepared as if the acquisition of Fairchild had occurred on January 1, 2015 and includes adjustments for depreciation expense, amortization of intangibles, interest expense from financing, and the effect of purchase accounting adjustments including the step-up of inventory, as well as $16.9 million in non-recurring acquisition advisory fees (in millions): Year Ended December 31, 2016 December 31, 2015 Revenue $ 4,912.8 $ 4,866.0 Net Income $ 196.6 $ 58.2 Net income attributable to ON Semiconductor Corporation $ 194.2 $ 55.4 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 0.47 $ 0.13 Diluted $ 0.46 $ 0.13 2016 Divestitures On August 25, 2016, the U.S. Federal Trade Commission (“FTC”) accepted a proposed consent order whereby, prior to the closing of the acquisition of Fairchild, the FTC required the Company to dispose of its ignition planar insulated gate bipolar transistor (“IGBT”) business. In satisfaction of this requirement, on August 29, 2016, the Company sold the ignition IGBT business to Littelfuse, Inc. (“Littelfuse”). On the same day the Company sold its transient voltage suppression diode and switching thyristor product lines (“Thyristor”) to Littelfuse. The sale of the ignition IGBT and Thyristor businesses was for $104.0 million in cash. In connection with the sale, the Company recorded a gain of $92.2 million after, among other things, transferring inventory of $4.1 million to Littelfuse, writing off goodwill of $3.4 million , and deferring $4.3 million of the proceeds representing the fair value of manufacturing services to be recognized in the future. This gain has been presented separately as “Gain on divestiture of business” in the Consolidated Statements of Operations. On December 19, 2016, the Company entered into an Asset Purchase Agreement with HSET Electronic Tech (Hong Kong) Limited to sell certain assets including inventory, technology and licenses related to its Mobile CIS business for $75 million . The proceeds for the divestiture are scheduled to be received in multiple installments in 2017. As the deliverables are due only upon the receipt of each instalment, the divestiture will be accounted for in 2017. The inventory is under production and the technology assets have been classified as assets held for sale and included within other current assets in the consolidated balance sheet as of December 31, 2016. The Company has $13.9 million of inventory that is currently under production which will be sold when the manufacturing process is complete. 2015 Acquisition Axsem On July 15, 2015, the Company acquired 100% of AXSEM for $8.0 million in cash consideration, plus an additional unlimited contingent consideration (the “Earn-out”) with a fair value of $5.0 million as of July 15, 2015. The unlimited Earn-out payment, if any, is based on the achievement of certain revenue targets during two separate measurement periods consisting of the following: (i) the period from the first day of the Company’s third fiscal quarter of 2016 to the last day of the Company’s second fiscal quarter of 2017; and (ii) the period from the first day of the Company’s third fiscal quarter of 2017 to the last day of the Company’s second fiscal quarter of 2018. During the year ended December 31, 2016, due to the revisions of the Company’s expectations of the Earn-out achievement, the Earn-out estimated fair value was reduced by $0.5 million to $4.5 million . 2014 Acquisitions Aptina On August 15, 2014, the Company acquired 100% of Aptina for approximately $405.4 million in cash, subject to customary closing adjustments, of which approximately $2.9 million was paid during the first quarter of 2015. As discussed below, a portion of the $40.0 million of the total consideration remained in escrow as of December 31, 2016 . Aptina is incorporated into the Company's Image Sensor Group for reporting purposes. For the period from August 15, 2014 to December 31, 2014, the Company's results of operations include approximately $209.0 million of revenue and a $39.2 million net loss attributable to the acquisition of Aptina, which includes $22.3 million of charges for the amortization of the inventory adjustment to fair market value, $25.5 million for the amortization of acquired intangible assets and $5.9 million for business combination severance charges. The Company expects the acquisition of Aptina to expand the Company's image-sensor business and further strengthen the Company's position in the fast growing segment of image sensors in the automotive and industrial end-markets. The allocation of the purchase price of Aptina was finalized during the quarter ended April 3, 2015. Acquired intangible assets include $51.3 million of IPRD assets, which are to be amortized over the useful life upon successful completion of the related projects. The value assigned to IPRD was determined by considering the importance of products under development to the overall development plan, estimating costs to develop the purchased IPRD into commercially viable products, reviewing costs incurred for the projects, estimating the resulting net cash flows from the projects when completed and discounting the net cash flows to their present value. Other acquired intangible assets of $207.8 million include: customer relationships of $126.5 million ( two to six year useful life); developed technology of $79.0 million ( six year useful life); and trademarks of $2.3 million ( six month useful life). Goodwill of $64.4 million was assigned to the Image Sensor Group. Among the factors that contributed to goodwill arising from the acquisition were the potential synergies that are expected to be derived from combining Aptina with the Company’s existing image sensor business. Goodwill is not deductible for tax purposes. Pursuant to the agreement and plan of merger between the Company and the sellers of Aptina (the "Merger Agreement"), $40.0 million of the total consideration was withheld by the Company upon closing and placed into an escrow account to secure against certain indemnifiable events described in the Merger Agreement. The $40.0 million of consideration held in escrow was accounted for as restricted cash as of December 31, 2014. During 2016 and 2015, $1.0 million and $21.2 million of the escrow was released, respectively, with $17.8 million and $18.8 million remaining as of December 31, 2016 and December 31, 2015 , respectively. The remaining escrow amounts will be released upon satisfaction of certain outstanding conditions contained in the Merger Agreement. All escrow amounts are treated as restricted cash and are included in other current assets and accrued expenses on the Company's Consolidated Balance Sheet. The following table presents purchase price allocation for the 2014 acquisition of Aptina, including the effects of the measurement period adjustments, recorded in 2015 (in millions): Purchase Price Allocation Cash and cash equivalents $ 30.3 Receivables 53.2 Inventories 84.8 Other current assets 5.7 Property, plant and equipment 36.3 Goodwill 64.4 Intangible assets 207.8 In-process research and development 51.3 Other non-current assets 2.3 Total assets acquired 536.1 Accounts payable 66.6 Other current liabilities 49.7 Other non-current liabilities 14.4 Total liabilities assumed 130.7 Net assets acquired $405.4 Truesense On April 30, 2014, the Company acquired 100% of Truesense for $95.7 million in cash. Truesense is incorporated into the Company's Image Sensor Group and the allocation of the purchase price was finalized during the year ended December 31, 2014. During the year ended December 31, 2014 , the Company recognized revenue of approximately $53.4 million and a net loss of approximately $0.3 million , attributable to the acquisition of Truesense, which includes $4.7 million of charges for the inventory adjustment to fair market value and $10.4 million for the amortization of acquired intangible assets. The following table presents the allocation of the purchase price recorded for the 2014 acquisition of Truesense, including the effects of the measurement period adjustments, recorded in 2015 (in millions): Purchase Price Allocation Cash and cash equivalents $ 4.2 Receivables 8.8 Inventories 18.3 Other current assets 3.6 Property, plant and equipment 26.4 Goodwill 23.5 Intangible assets 35.5 In-process research and development 10.2 Total assets acquired 130.5 Accounts payable 3.8 Other current liabilities 6.0 Other non-current liabilities 25.0 Total liabilities assumed 34.8 Net assets acquired $95.7 Goodwill of $23.5 million was assigned to the Image Sensor Group. Among the factors that contributed to goodwill arising from the acquisition were the potential synergies expected to be derived from combining Truesense with the Company’s existing image sensor business. Approximately $2.0 million of the $23.5 million of goodwill as of December 31, 2014 is deductible for tax purposes. Pro Forma Results of Operations (Unaudited) The following unaudited pro forma consolidated results of operations for the year ended December 31, 2014 have been prepared as if the acquisitions of Aptina and Truesense had occurred on January 1, 2013 and includes adjustments for depreciation expense, amortization of intangibles, and the effect of purchase accounting adjustments including the step-up of inventory (in millions, except per share data): December 31, 2014 Revenues $ 3,536.4 Gross profit $ 1,213.7 Net income attributable to ON Semiconductor Corporation $ 147.8 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 0.34 Diluted $ 0.33 Included in the unaudited pro forma net income attributable to ON Semiconductor Corporation is $50.8 million for the amortization of acquisition related intangible assets during the year ended December 31, 2014. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5: Goodwill and Intangible Assets Goodwill Goodwill is tested for impairment at the reporting unit level which is one level below the Company's operating segments. During the first step of the Company's annual impairment analysis during the fourth quarters of 2016 and 2015 , the Company determined that the carrying amount of the Company's goodwill for all of its reporting units was recoverable and no step 2 tests were required for any reporting unit. The Company uses the income approach, based on estimated future cash flows, to perform the goodwill impairment test. These estimates include assumptions about future conditions such as future revenues, gross profits, operating expenses, and industry trends. The Company considers other valuation methods, such as the cost approach or market approach, if it determines that these methods provide a more representative approximation of fair value. The material assumptions used for the income approach for periods when no impairment was necessary included projected net cash flows, a weighted-average discount rate of approximately 10.5% , and a weighted-average long-term growth rate of 3% . The Company considered historical rates and current market conditions when determining the discount and growth rates to use in the Company's analysis. As noted above, there were no impairment charges as a result of the annual impairment analysis in 2016 . During the Company's annual impairment analysis in the fourth quarter of 2014 , the Company determined that the fair values of certain of its reporting units were less than the carrying value. As a result of the 2014 impairment analysis, the Company recognized a goodwill impairment charge of $8.7 million relating to one of its reporting units in the Analog Solutions Group operating segment. The following table summarizes goodwill by relevant reportable segment as of December 31, 2016 and December 31, 2015 (in millions): Balance as of December 31, 2016 Balance as of December 31, 2015 Goodwill Accumulated Impairment Losses Carrying Value Goodwill Accumulated Impairment Losses Carrying Value Operating Segment Analog Solutions Group $ 836.7 $ (418.9 ) $ 417.8 $ 546.7 $ (418.9 ) $ 127.8 Image Sensor Group 96.8 — 96.8 95.4 — 95.4 Power Solutions Group 438.7 (28.6 ) 410.1 76.0 (28.6 ) 47.4 Total $ 1,372.2 $ (447.5 ) $ 924.7 $ 718.1 $ (447.5 ) $ 270.6 The following table summarizes the change in goodwill from December 31, 2014 to December 31, 2016 (in millions): Net balance as of December 31, 2014 $ 263.8 Additions due to business combinations 6.8 Net balance as of December 31, 2015 270.6 Additions due to business combination 657.5 Divestiture of business (3.4 ) Net balance as of December 31, 2016 $ 924.7 Intangible Assets Intangible assets, net, were as follows as of December 31, 2016 and December 31, 2015 (in millions): December 31, 2016 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Intellectual property $ 13.9 $ (11.2 ) $ (0.4 ) $ 2.3 Customer relationships 549.0 (283.3 ) (19.5 ) 246.2 Patents 43.7 (25.4 ) (13.7 ) 4.6 Developed technology 566.9 (201.6 ) (2.6 ) 362.7 Trademarks 17.2 (11.6 ) (1.1 ) 4.5 Backlog 3.3 (2.4 ) — 0.9 Favorable Leases 1.5 (0.4 ) — 1.1 IPRD 145.8 — (6.0 ) 139.8 Total intangibles $ 1,341.3 $ (535.9 ) $ (43.3 ) $ 762.1 December 31, 2015 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Intellectual property $ 13.9 $ (10.6 ) $ (0.4 ) $ 2.9 Customer relationships 419.8 (239.6 ) (19.8 ) 160.4 Patents 43.7 (23.6 ) (13.7 ) 6.4 Developed technology 268.0 (152.2 ) (2.6 ) 113.2 Trademarks 16.3 (9.9 ) (1.1 ) 5.3 Backlog 0.3 (0.3 ) — — IPRD 41.4 — (3.8 ) 37.6 Total intangibles $ 803.4 $ (436.2 ) $ (41.4 ) $ 325.8 During the year ended December 31, 2016 , the Company canceled certain of its previously capitalized IPRD projects under the Image Sensor Group and recorded impairment losses of $2.2 million , included in the “Goodwill and intangible asset impairment” caption on the Company's Consolidated Statements of Operations and Comprehensive Income. Additionally, during the year ended December 31, 2016 , the Company completed certain of its IPRD projects, resulting in the reclassification of $21.6 million from IPRD to developed technology. The Company also acquired $547.8 million of intangibles from the acquisition of Fairchild and resulting purchase accounting. As a result of the Company's annual goodwill impairment testing for 2014 , it was determined that certain intangible assets belonging to a reporting unit within the Analog Solutions Group were impaired. In connection with this impairment, the Company wrote-off approximately $0.9 million of intangible assets associated with the Analog Solutions Group operating segment. Additionally, during the fourth quarter of 2014 , the Company wrote off approximately $4.7 million of other long-lived assets associated with the Analog Solutions Group. See Note 13: ''Fair Value Measurements'' for additional information with respect to the Company's non-recurring fair value measurements. Amortization expense for intangible assets amounted to: $104.8 million for the year ended December 31, 2016 , $135.7 million for the year ended December 31, 2015 and $68.4 million for the year ended December 31, 2014 . Amortization expense for intangible assets, with the exception of the $139.8 million of IPRD assets that will be amortized once the corresponding projects have been completed, is expected to be as follows over the next five years, and thereafter (in millions): Total 2017 $ 112.8 2018 94.5 2019 87.7 2020 72.4 2021 59.7 Thereafter 195.2 Total estimated amortization expense $ 622.3 |
Restructuring, Asset Impairment
Restructuring, Asset Impairments and Other, Net | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring, Asset Impairments and Other, Net | Note 6: Restructuring, Asset Impairments and Other, Net Summarized activity included in the “Restructuring, asset impairments and other, net” caption on the Company's Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2016 , 2015 and 2014 is as follows (in millions): Restructuring Asset Impairments Other (2) Total Year Ended December 31, 2016 Post-Fairchild acquisition restructuring costs $ 25.7 $ — $ — $ 25.7 Former System Solutions Group segment voluntary workforce reduction 5.3 — — 5.3 Manufacturing relocation 2.1 — — 2.1 General Workforce Reductions 0.3 — — 0.3 Other (1) (0.2 ) — — (0.2 ) Total $ 33.2 $ — $ — $ 33.2 Year Ended December 31, 2015 General Workforce Reductions $ 4.8 $ — $ — $ 4.8 European Marketing Organization Relocation 3.5 — — 3.5 Business Combination Severance 1.0 — — 1.0 KSS Facility Closure 0.3 — (3.4 ) (3.1 ) Other (1) 1.4 0.2 1.5 3.1 Total $ 11.0 $ 0.2 $ (1.9 ) $ 9.3 Year Ended December 31, 2014 Former System Solutions Group Voluntary Retirement Program $ 10.4 $ — $ (4.5 ) $ 5.9 Business Combination Severance 5.9 — — 5.9 KSS Facility Closure 10.1 — (2.1 ) 8.0 Other (1) 1.7 6.0 3.0 10.7 Total $ 28.1 $ 6.0 $ (3.6 ) $ 30.5 _______________________ (1) Includes charges related to certain other reductions in workforce, other facility closures, asset disposal activity and certain other activity which is not considered to be significant. (2) Activity primarily consists of curtailment gains, non-cash foreign currency translation gains and certain other activity. See Note 11: ''Employee Benefit Plans'' for additional information. Changes in accrued restructuring charges from December 31, 2014 to December 31, 2016 are summarized as follows (in millions): Estimated employee separation charges Estimated costs to exit Total Balance as of December 31, 2014 $ 2.3 $ 1.1 $ 3.4 Charges 11.0 $ — 11.0 Usage (8.0 ) (0.6 ) (8.6 ) Balance as of December 31, 2015 $ 5.3 $ 0.5 $ 5.8 Charges 33.2 — $ 33.2 Usage (30.4 ) (0.5 ) $ (30.9 ) Balance as of December 31, 2016 $ 8.1 $ — $ 8.1 Activity related to the Company’s significant restructuring programs that were either initiated during 2016 or had not been completed as of December 31, 2016 , are as follows: Post-Fairchild Acquisition Restructuring Costs On September 19, 2016, following the acquisition of Fairchild, the Company approved the implementation of a cost-reduction plan, the first step of which was to eliminate approximately 130 positions from its workforce as a result of redundancies and position eliminations. The restructuring expense of $25.7 million , which was primarily attributable to severance and termination benefits, was recorded during the year ended December 31, 2016, of which $20.2 million was paid during the year. During the fourth quarter ended December 31, 2016 , another 95 positions were eliminated. Accrued severance for these two programs were $5.5 million as of December 31, 2016 and is expected to be paid during the first two quarters of 2017. The Company will continue to evaluate the remaining positions for redundancies and may incur additional charges in the future. General Workforce Reductions During the third quarter of 2015, the Company approved and began to implement certain restructuring actions, primarily targeted at workforce reductions. As of December 31, 2016 , the Company had notified 150 employees of their employment termination, all of which had exited by December 31, 2016 . The total expense for the program was $5.1 million , with no additional expenses expected. The Company paid $1.3 million and $3.8 million during the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, there is no remaining unpaid liability due to the completion of the program. Former System Solutions Group Segment Voluntary Workforce Reduction During March 2016, the Company announced a voluntary resignation program for the former System Solutions Group. A total of 75 employees volunteered and signed employee separation agreements as of the end of the quarter ended September 30, 2016. The total expense of the plan was $5.3 million and all employees were paid during the year. All of the employees have exited as of December 31, 2016. No further expenses are expected and there is no remaining unpaid liability due to the completion of this plan. Manufacturing Relocation During March 2016, the Company announced a plan to relocate certain of its manufacturing operations to another existing location. The transition will occur through 2017. Approximately 160 employees will be impacted by the relocation. The total expense, consisting of retention and severance, is expected to be approximately $5.7 million and the accrued balance as of December 31, 2016 was $2.1 million . A majority of the employees are expected to exit during the second half of 2017. European Marketing Organization Relocation In January 2015, the Company announced that it would relocate its European customer marketing organization from France to Slovakia and Germany. As a result, six positions were eliminated and the total expense of the plan was $3.5 million , with no additional expenses expected. The Company did not record any related employee separation charges during the year ended December 31, 2016. All impacted employees have exited as of 2016. The Company paid $2.9 million and $0.6 million during the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, there is no remaining unpaid liability due to the completion of this program. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Information | Note 7: Balance Sheet Information Certain significant amounts included in the Company's balance sheet as of December 31, 2016 and December 31, 2015 consist of the following (in millions): December 31, 2016 December 31, 2015 Receivables, net: Accounts receivable $ 632.0 $ 432.6 Less: Allowance for doubtful accounts (2.2 ) (6.2 ) $ 629.8 $ 426.4 Inventories: Raw materials $ 121.4 $ 79.3 Work in process 606.9 457.8 Finished goods 301.9 213.3 $ 1,030.2 $ 750.4 Property, plant and equipment, net: Land $ 146.3 $ 46.2 Buildings 713.7 513.6 Machinery and equipment 3,131.1 2,327.5 Total property, plant and equipment 3,991.1 2,887.3 Less: Accumulated depreciation (1,832.0 ) (1,613.2 ) $ 2,159.1 $ 1,274.1 Accrued expenses: Accrued payroll $ 155.3 $ 95.1 Sales related reserves 124.8 69.9 Income taxes payable 30.0 11.1 Acquisition consideration payable to seller (See Note 4) 18.8 19.6 Other 76.1 50.5 $ 405.0 $ 246.2 Assets classified as held for sale, consisting of properties, machinery and equipment, and intangible assets are required to be recorded at the lower of carrying value or fair value less any costs to sell. The carrying value of these assets, as of December 31, 2016 and 2015 , was $34.1 million and $0.3 million , respectively, and is reported as other current assets on the Company’s Consolidated Balance Sheet. The Company expects to dispose of the remaining assets within the next 12 months. Depreciation expense for property, plant and equipment, including amortization of capital leases, totaled $239.6 million , $201.7 million and $183.6 million for 2016 , 2015 and 2014 , respectively. As of December 31, 2016 and 2015 , total property, plant and equipment included $13.0 million and $28.2 million , respectively, of assets financed under capital leases. Accumulated depreciation associated with these assets is included in total accumulated depreciation in the table above. Warranty Reserves The activity related to the Company's warranty reserves for 2014 , 2015 and 2016 follows (in millions): Balance as of December 31, 2013 $ 6.0 Provision 2.7 Usage (3.2 ) Balance as of December 31, 2014 $ 5.5 Provision 2.7 Usage (2.9 ) Balance as of December 31, 2015 $ 5.3 Provision 6.3 Usage (10.8 ) Warranty reserves from acquired businesses 8.0 Balance as of December 31, 2016 $ 8.8 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8: Long-Term Debt The Company's long-term debt consists of the following (annualized rates, dollars in millions): December 31, 2016 December 31, 2015 Revolving Credit Facility due 2021 $ — $ — Term Loan “B” Facility due 2023, interest payable monthly at 4.02% 2,394.0 — 1.00% Notes due 2020 (1) 690.0 690.0 2.625% Notes, Series B (2) 356.4 356.9 Note payable to SMBC due 2016 through 2018, interest payable quarterly at 2.75% and 2.36%, respectively (3) 160.4 198.2 U.S. real estate mortgages payable monthly through 2019 at an average rate of 3.12% and 3.35%, respectively (4) 38.9 50.0 Philippine term loans due 2016 through 2020, interest payable quarterly at 2.88% and 2.32%, respectively (7) 44.1 50.0 Loan with Singapore bank, interest payable weekly at 2.01% and 1.67%, respectively (6) (10) 25.0 30.0 Loan with Hong Kong bank, interest payable weekly at 2.01% and 1.67%, respectively (6) (10) 25.0 25.0 Malaysia revolving line of credit, interest payable quarterly at 2.45% and 2.05%, respectively (7) (10) 25.0 25.0 Vietnam revolving line of credit, interest payable quarterly at an average rate of 2.43% and 1.89%, respectively (7) (10) 17.0 20.8 Loan with Philippine bank due 2016 through 2019, interest payable quarterly at 3.22% and 2.70%, respectively (5) 14.1 18.8 Canada revolving line of credit, interest payable quarterly at 0.0% and 2.01%, respectively (7) — 15.0 Loan with Japanese bank due 2016 through 2020, interest payable quarterly at 1.1% (7) 3.4 4.2 Canada equipment financing payable monthly through 2017 at 3.81% (5) 0.5 2.4 U.S. equipment financing payable monthly through 2016 at 2.4% (5) — 1.3 Capital lease obligations 13.0 28.2 Gross long-term debt, including current maturities 3,806.8 1,515.8 Less: Debt discount (8) (111.4 ) (107.5 ) Less: Debt issuance costs (9) (73.1 ) (14.4 ) Net long-term debt, including current maturities 3,622.3 1,393.9 Less: Current maturities (553.8 ) (543.4 ) Net long-term debt $ 3,068.5 $ 850.5 _______________________ (1) Interest is payable on June 1 and December 1 of each year at 1.00% annually. See below under the heading " 1.00% Notes" for additional information. (2) The 2.625% Notes, Series B were redeemed during January 2017. See below under the heading " 2.625% Notes, Series B" for additional information. (3) This loan represents SCI LLC's non-collateralized loan with SMBC, which is guaranteed by the Company. See additional information below under the heading "Note Payable to SMBC." (4) Debt arrangement collateralized by real estate, including certain of the Company's facilities in California, Oregon and Idaho. See below under the heading "U.S. Real Estate Mortgages" for additional information with respect to recent activity. (5) Debt collateralized by equipment. (6) Debt arrangement collateralized by certain accounts receivable. (7) Non-collateralized debt arrangement. The Canada revolving line of credit was paid down during 2016 and terminated as of December 31, 2016. (8) Discount of $81.5 million and $100.2 million for the 1.00% Notes as of December 31, 2016 and December 31, 2015, respectively. Discount of zero and $7.3 million for the 2.625% Notes, Series B as of December 31, 2016 and December 31, 2015 , respectively. Discount of $29.9 million and zero for the term Loan "B" Facility as of December 31, 2016 and December 31, 2015 , respectively. (9) Debt issuance costs of $11.3 million and $13.9 million for the 1.00% Notes as of December 31, 2016 and December 31, 2015, respectively. Debt issuance costs of zero and $0.5 million for the 2.625% Notes, Series B as of December 31, 2016 and December 31, 2015 . Debt issuance costs of $61.8 million and zero for the term Loan "B" Facility as of December 31, 2016 and December 31, 2015 , respectively. (10) The Company has historically renewed these arrangements annually. Expected maturities relating to the Company’s gross long-term debt (including current maturities) as of December 31, 2016 are as follows (in millions): Annual Maturities 2017 $ 554.7 2018 158.9 2019 71.5 2020 723.7 2021 24.0 Thereafter 2,274.0 Total $ 3,806.8 The 2.625% Notes, Series B were redeemed during January 2017. Fairchild Transaction Financing On April 15, 2016, the Company obtained capital for the Fairchild Transaction purchase consideration and other general corporate purposes by entering into (1) a $600 million senior revolving credit facility (the “Revolving Credit Facility”) and a $2.2 billion term loan “B” facility (the “Term Loan “B” Facility”), the terms of which are set forth in a Credit Agreement (the “New Credit Agreement”), dated as of April 15, 2016, by and among the Company, as borrower, the several lenders party thereto, Deutsche Bank AG, New York Branch, as administrative agent and collateral agent (the “Agent”), and certain other parties, and (2) a Guarantee and Collateral Agreement (the “Guarantee and Collateral Agreement”) with certain of its domestic subsidiaries (the “Guarantors”), pursuant to which the New Credit Agreement was guaranteed by the Guarantors and collateralized by a pledge of substantially all of the assets of the Company and the Guarantors, including a pledge of the equity interests in certain of the Company’s domestic and first-tier foreign subsidiaries, subject to customary exceptions. The obligations under the New Credit Agreement are also collateralized by mortgages on certain real property assets of the Company and its domestic subsidiaries. The proceeds from the Term Loan “B” Facility, along with $67.7 million funded by the Company, were deposited into escrow accounts and included within restricted cash on the Company’s Consolidated Balance Sheet until the close of the Fairchild Transaction. Upon the close of the Fairchild Transaction, the Company’s then current senior revolving credit facility (the "Facility" as defined below under “ 2015 Revolver Amendment ” and further described below under " Amended and Restated Senior Revolving Credit Facility") was terminated and replaced by the Revolving Credit Facility, which became immediately available to the Company. The acquisition of Fairchild was funded with proceeds from the Term Loan “B” Facility and Company funded amounts previously deposited into escrow accounts, proceeds from a $200.0 million draw against the Company’s Revolving Credit Facility, and existing cash on hand. Proceeds from the Term Loan “B” Facility were also used to pay for debt issuance costs, transaction fees and expenses. Amendment of the New Credit Agreement On September 30, 2016, the Company, the Guarantors, the several lenders party thereto and the Agent entered into the first amendment (the “First Amendment”) to the New Credit Agreement (the “Amended Credit Agreement”). The First Amendment reduced the applicable margins on Eurocurrency Loans to 2.75% and 3.25% for borrowings under the Revolving Credit Facility and the Term Loan “B” Facility, respectively, and reduced applicable margins on ABR Loans to 1.75% and 2.25% for borrowings under the Revolving Credit Facility and the Term Loan “B” Facility, respectively. Additionally, the First Amendment included the following: (i) the Term Loan “B” Facility was increased to $2.4 billion , (ii) certain restructuring transactions and intercompany intellectual property transfers are permitted in order to achieve efficient integration of the Company, its subsidiaries and acquired entities; and (iii) certain changes were made to the provisions regarding hedge agreements to allow the Company and each of the Guarantors to enter into certain hedge arrangements that shall be deemed to be “obligations” for purposes of the Amended Credit Agreement which may be collateralized by the collateral granted pursuant to the Guarantee and Collateral Agreement. The Company used the additional $200.0 million proceeds under the Term Loan “B” Facility to pay off the outstanding balance under the Company’s Revolving Credit Facility. As of December 31, 2016 , the Company had no amounts outstanding under the Revolving Credit Facility. Pursuant to the Amended Credit Agreement, the Term Loan “B” Facility matures on March 31, 2023 and the Revolving Credit Facility will mature on September 19, 2021. As of December 31, 2016 , the Company has borrowed an aggregate of $2.4 billion under the Term Loan “B” Facility. The Term Loan “B” Facility had an original issuance discount (“OID”) of $33.0 million , which was withheld from the proceeds. The OID is amortized using the effective interest rate method over the term of the Term Loan “B” Facility. All borrowings under the Amended Credit Agreement may, at the Company’s option, be incurred as either eurocurrency loans (“Eurocurrency Loans”) or alternate base rate loans (“ABR Loans”). Eurocurrency Loans will accrue interest for any interest period ending after the date of the First Amendment, at (a) a base rate per annum equal to the Adjusted LIBO Rate (as defined in the Amended Credit Agreement) plus (b) an applicable margin equal to (i) 2.75% with respect to borrowings under the Revolving Credit Facility or (ii) 3.25% with respect to borrowings under the Term Loan “B” Facility. ABR Loans will accrue interest, for any interest period ending after the date of the First Amendment, at (a) a base rate per annum equal to the highest of (i) the Federal funds rate plus 1/2 of 1%, (ii) the prime commercial lending rate announced by Deutsche Bank AG, New York Branch, from time to time as its prime lending rate and (iii) the Adjusted LIBO Rate for a one month interest period (determined after giving effect to any applicable “floor”) plus 1.00% ; provided that, the Adjusted LIBO Rate for any day shall be based on the LIBO Rate (as defined in the Amended Credit Agreement), subject to the interest rate floors set forth in the Amended Credit Agreement plus (b) an applicable margin equal to (i) 1.75% with respect to borrowings under the Revolving Credit Facility or (ii) 2.25% with respect to borrowings under the Term Loan “B” Facility. The applicable margin for borrowings under the Revolving Credit Facility will vary based on a defined net leverage ratio, which is defined in the Amended Credit Agreement. After the completion of the Company’s first full fiscal quarter occurring six months after the closing date of the Fairchild Transaction, the applicable margin for borrowings under the Revolving Credit Facility may be decreased if the Company’s consolidated net leverage ratio decreases. The Amended Credit Agreement also requires us to pay a commitment fee for the unused portion of the Revolving Credit Facility, which will be a minimum of 0.25% and a maximum of 0.35% , depending on the Company’s defined net leverage ratio. The obligations under the Amended Credit Agreement are guaranteed by the Guarantors and secured by a pledge of substantially all of the assets of the Company and the Guarantors, including a pledge of the equity interests in certain of the Company’s domestic and first-tier foreign subsidiaries, subject to customary exceptions. The obligations under the Amended Credit Agreement are also collateralized by mortgages on certain real property assets of the Company and its domestic subsidiaries. The Term Loan “B” Facility requires quarterly principal payments equal to 0.25% of the principal amount of the Term Loan “B” Facility starting December 2016. At the maturity date of the Term Loan “B” Facility, any remaining unpaid principal amount shall be due and payable in full. The Amended Credit Agreement includes financial maintenance covenants including a maximum consolidated total net leverage ratio and a minimum interest coverage ratio. It also contains other customary affirmative and negative covenants and events of default. The Company was in compliance with its covenants as of December 31, 2016 . Pursuant to the Amended Credit Agreement, the Company is required to prepay the Excess Cash Flow (as defined in the Amended Credit Agreement) generated within ten days from the submission of the compliance certificate. The prepayment is applied against the remaining installments of the Term Loan “B” Facility in direct order of maturity. For the year ended December 31, 2016, the Excess Cash Flow generated was $37.2 million and is included within current portion of long-term debt on the Consolidated Balance Sheet. Debt Extinguishment, Modification, and Issuance Costs As further described below, the Company recognized a loss of $6.3 million and $0.4 million for the years ended December 31, 2016 and 2015 , respectively, for the extinguishment of certain of its credit facilities. New Credit Agreement Amendment The Company incurred debt issuance costs consisting of legal, underwriting and other fees of $66.6 million related to the Term Loan “B” Facility, including $22.0 million toward lender fees for the First Amendment. A portion of the debt issuance costs were paid directly from escrowed funds per the terms of the escrow agreement and is reflected as a non-cash activity. See Note 17: ''Supplemental Disclosures'' for more information. The Company recorded the Term Loan “B” Facility debt issuance costs as a direct deduction from the carrying amount of the debt and is amortizing them using the effective interest rate method over the term of the loan. The Company performed a debt extinguishment vs. modification analysis on a lender by lender basis upon the execution of the First Amendment. The Company recorded a debt extinguishment charge of $4.7 million during the year ended December 31, 2016 , which included a $0.3 million write off of unamortized debt issuance costs, $4.3 million in third party fees, and $0.1 million of lender fees. The Company incurred debt issuance costs consisting of legal, underwriting and other fees of $8.2 million for the Revolving Credit Facility. The Company recognized the Revolving Credit Facility underwriter fees and debt issuance costs as deferred costs, which are included in other assets on the Company’s Consolidated Balance Sheet. The Company amortizes these deferred costs on a straight line basis over the term of the Revolving Credit Facility from the acquisition closing date, which was the date the revolver became available to the Company. The Company accounted for the termination and replacement of its senior revolving credit facility by the Revolving Credit Facility as a debt modification and wrote off $1.6 million in unamortized debt issuance costs. The remaining unamortized costs of $2.0 million related to the terminated senior revolving credit facility are being amortized over the term of the Revolving Credit Facility. 2015 Revolver Amendment On May 1, 2015 , the Company and its wholly-owned subsidiary, SCI LLC, entered into an amendment to the $800.0 million , five-year senior revolving credit facility (the “Facility”) pursuant to the Amended and Restated Credit Agreement dated as of October 10, 2013 (the “Credit Agreement”), among the Company and a group of lenders. The amendment expanded the borrowing capacity of the Facility to $1.0 billion and reset the five -year maturity date. The Facility may be used for general corporate purposes including working capital, stock repurchase, and/or acquisitions. At issuance, the Company recorded $2.1 million of new debt issuance costs and wrote-off $0.4 million of existing debt issuance costs associated with the Facility, resulting in a loss on debt extinguishment during the year ended December 31, 2015 . Note Payable to SMBC On January 31, 2013 , the Company amended and restated its seven -year, non-collateralized loan obligation with SANYO Electric. In connection with the amendment and restatement of the loan agreement, SANYO Electric assigned all of its rights under the loan agreement to SMBC. The loan had an original principal amount of approximately $377.5 million and had a principal balance of $160.4 million and $198.2 million as of December 31, 2016 and December 31, 2015 , respectively. The loan bears interest at a rate of 3-month LIBOR plus 1.75% per annum and provides for quarterly interest and $9.4 million in principal payments, with the unpaid balance of $122.7 million due in January 2018 . Amended and Restated Senior Revolving Credit Facility On May 1, 2015 , the Company and its wholly-owned subsidiary, SCI LLC, entered into an amendment to the Facility pursuant to the Credit Agreement among the Company and a group of lenders. The amendment expanded the borrowing capacity of the Facility to $1.0 billion and reset the five -year maturity date. The Facility may be used for general corporate purposes including working capital, stock repurchase, and/or acquisitions. On June 1, 2015, the Company and its wholly-owned subsidiary, SCI LLC, entered into a second amendment of the Facility that provides for, among other things, modifications to the Facility to allow for the issuance by the Company of its convertible senior notes, subject to the satisfaction of certain conditions, and to permit the Company to enter into certain hedging transactions relating to such notes or otherwise. In addition, the second amendment provides for the release of the pledged stock of certain of the Company’s subsidiaries upon the issuance of the convertible senior notes. The Facility includes $15.0 million availability for the issuance of letters of credit, $15.0 million availability for swingline loans for short-term borrowings and a foreign currency sublimit of $75.0 million . The Company has the ability to increase the size of the Facility in increments of $10.0 million provided that the aggregate amount of such increases does not exceed $500.0 million . Payments of the principal amounts of revolving loans under the Credit Agreement are due no later than May 1, 2020 , which is the maturity date of the Facility. Interest is payable based on either a LIBOR or base rate option, as established at the commencement of each borrowing period, plus an applicable rate that varies based on the total leverage ratio. The Company has also agreed to pay the lenders certain fees, including a commitment fee that varies based on the total leverage ratio. The Company may prepay loans under the Credit Agreement at any time, in whole or in part, upon payment of accrued interest and break funding payments, if applicable. The obligations under the Facility are guaranteed by certain of the Company's and SCI LLC's domestic subsidiaries and prior to the issuance of the 1.00% Notes, were collateralized by a pledge of the equity interests in certain of the Company's and SCI LLC's domestic subsidiaries and material first tier foreign subsidiaries. The Credit Agreement contains affirmative and negative covenants that are customary for credit agreements of this nature. The negative covenants include, among other things, limitations on asset sales, mergers and acquisitions, indebtedness, liens, investments and transactions with affiliates. The Company's business combinations described in Note 4: "Acquisitions and Divestitures," represent permitted activities pursuant to the Credit Agreement. The Credit Agreement contains only two financial covenants: (i) a maximum total leverage ratio of consolidated total indebtedness to consolidated earnings before interest, taxes, depreciation and amortization and other adjustments described in the Credit Agreement ("consolidated EBITDA") for the trailing four consecutive quarters of 3.75 to 1.00; and (ii) a minimum interest coverage ratio of consolidated EBITDA to consolidated interest expense for the trailing four consecutive quarters of 3.50 to 1.0. The Credit Agreement contains customary events of default that include, among other things, non-payment defaults, inaccuracy of representations and warranties, covenant defaults, cross default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, ERISA defaults and a change of control default. The occurrence of an event of default could result in the acceleration of the obligations under the Credit Agreement. The Company was in compliance with the various covenants contained in the Credit Agreement as of December 31, 2015 and for the period of time in 2016 when the Facility was available to the Company. As discussed above, upon the close of the Fairchild Transaction, the Facility was terminated and replaced by the Revolving Credit Facility. There were no borrowings on the Facility during 2015 and for the period of time in 2016 when the Facility was available to the Company. There were no debt issuance costs associated with the Facility as of December 31, 2016 . 1.00% Notes On June 8, 2015, the Company completed a private placement of $690.0 million of its 1.00% Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Company was the sole issuer in the private unregistered offering of the 1.00% Notes. The Company incurred issuance costs of $18.3 million in connection with the issuance of the notes, of which $15.4 million were recorded as debt issuance costs and are being amortized using the effective interest method and $2.9 million were allocated to the conversion option (as further described below) and were recorded to equity. The 1.00% Notes are governed by an indenture between the Company, as the issuer, the guarantors named therein and Wells Fargo Bank, National Association, as trustee. The Company's use of the net proceeds from the offering included the following: (i) the funding of the cost of the convertible note hedge transactions described below (the cost of which was partially offset by the proceeds that the Company received from entering into the warrant transactions described below); (ii) funding the repurchase of $70.0 million of the Company's common stock which was acquired from purchasers of the 1.00% Notes in privately negotiated transactions effected through one or more of the initial purchasers or their affiliates conducted concurrently with the issuance of the 1.00% Notes ; and (iii) repayment of $350.0 million of borrowings outstanding under its revolving credit facility. The remainder of the proceeds was intended for general corporate purposes, including additional share repurchases and potential acquisitions. The notes bear interest at the rate of 1.00% per year from the date of issuance, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2015 . The notes are fully and unconditionally guaranteed on a senior unsecured obligation basis by certain existing subsidiaries of the Company. The notes are convertible by holders into cash and shares of the Company’s common stock at a conversion rate of 54.0643 shares of common stock per $1,000 principal amount of notes (subject to adjustment in certain events), which is equivalent to an initial conversion price of $18.50 per share of common stock. The Company will settle conversion of all notes validly tendered for conversion in cash and shares of the Company’s common stock, if applicable, subject to the Company’s right to pay the share amount in additional cash. Holders may convert their notes only under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2015, if the last reported sale price of common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (ii) during the five business-day period immediately following any five consecutive trading-day period in which the trading price per $1,000 principal amount of notes for each day of such period was less than 98% of the product of the closing sale price of the Company’s common stock and the conversion rate; (iii) upon occurrence of the specified transactions described in the indenture relating to the notes; or (iv) on and after September 1, 2020 . Upon conversion of the notes, the Company will deliver cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company's election. For a discussion of the dilutive effects for earnings per share calculations, see Note 9: "Earnings Per Share and Equity." The notes will mature on December 1, 2020 . If a holder elects to convert its notes in connection with the occurrence of specified fundamental changes that occur prior to September 1, 2020 , the holder will be entitled to receive, in addition to cash and shares of common stock equal to the conversion rate, an additional number of shares of common stock, in each case as described in the indenture. Notwithstanding these conversion rate adjustments, these notes contain an explicit limit on the number of shares issuable upon conversion. In connection with the occurrence of specified fundamental changes, holders may require the Company to repurchase for cash all or part of their notes at a purchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The notes, which are the Company’s unsecured obligations, will rank equally in right of payment to all of the Company’s existing and future unsubordinated indebtedness and will be senior in right of payment to all of the Company’s existing and future subordinated obligations. The notes will also be effectively subordinated to any of the Company’s or its subsidiaries’ secured indebtedness to the extent of the value of the assets securing such indebtedness. ON Semiconductor was the sole issuer of the 1.00% Notes. In accordance with accounting guidance on embedded conversion features, the Company valued and bifurcated the conversion option associated with the 1.00% Notes from the respective host debt instrument, which is referred to as the debt discount, and initially recorded the conversion option of $110.4 million in stockholders' equity. The resulting debt discount is being amortized to interest expense at an effective interest rate of 4.29% over the contractual terms of the notes. The Company used $56.9 million of the net proceeds from the offering of its 1.00% Notes to concurrently enter into convertible note hedge and warrant transactions with certain of the initial purchasers of the 1.00% Notes . Pursuant to these transactions, the Company has the option to purchase initially (subject to adjustment for certain specified transactions) a total of 37.3 million shares of its common stock at a price of $18.50 per share. The total cost of the convertible note hedge transactions was $108.9 million . In addition, the Company sold warrants to certain bank counterparties whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) a total of 37.3 million shares of the Company's common stock at a price of $25.96 per share. The Company received $52.0 million in cash proceeds from the sale of these warrants. In aggregate, the purchase of the convertible note hedges and the sale of the warrants are intended to offset potential dilution from the conversion of these notes. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders' equity and are not accounted for as derivatives. The net cost incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid in capital in the Consolidated Balance Sheet. A portion of the shares subject to the conversion of the 1.00% Notes and hedging transactions were reserved in the form of the Company's treasury stock. 2.625% Notes, Series B On March 22, 2013 , the Company completed its final exchange offer for its 2.625% Notes in exchange for its 2.625% Notes, Series B. Subject to certain other terms and conditions, these exchanges extended the first put date for the exchanged amounts from December 2013 to December 2016. The 2.625% Notes, Series B bore interest at the rate of 2.625% per year from the date of issuance. Interest was payable on June 15 and December 15 of each year. The 2.625% Notes, Series B were fully and unconditionally guaranteed on a non-collateralized senior subordinated basis by certain existing domestic subsidiaries of the Company. ON Semiconductor was the sole issuer of the 2.625% Notes, Series B. The 2.625% Notes, Series B were convertible by holders into cash and shares of the Company's common stock at a conversion rate of 95.2381 shares of common stock per $1,000 principal amount of notes (subject to adjustment upon the occurrence of certain events), which was equivalent to an initial conversion price of approximately $10.50 per share of common stock. The Company would settle conversion of all notes validly tendered for conversion in cash and shares of the Company's common stock, if applicable, subject to the Company's right to pay the share amount in additional cash. Holders had the option to convert their 2.625% Notes, Series B under the following circumstances: (i) during the five business-day period immediately following any five consecutive trading-day period in which the trading price per $1,000 principal amount of notes for each day of such period was less than 103% of the product of the closing sale price of the Company's common stock and the conversion rate; (ii) upon occurrence of the specified transactions described in the Indenture relating to the 2.625% Notes, Series B; or (iii) after June 15, 2016. On November 17, 2016, the Company announced that it would be exercising its option to redeem the entire $356.9 million outstanding principal amount of the 2.625% Notes, Series B on December 20, 2016 pursuant to the terms of the indenture governing the 2.625% Notes, Series B. The holders of the 2.625% Notes, Series B had the right to convert their 2.625% Notes, Series B into shares of common stock of the Company at a conversion rate of 95.2381 shares per $1,000 principal amount until the close of business on December 19, 2016. The Company satisfied its conversion obligation with respect to the 2.625% Notes, Series B tendered for conversion with cash. The final conversion was settled on January 26, 2017, resulting in an aggregate payment of approximately $445 million for the redemption and conversion of the 2.625% Notes, Series B. The equity component of the 2.625% Notes, Series B amounting to $32.9 million , representing the amounts previously recorded to additional paid in capital has been reclassified to mezzanine equity as of December 31, 2016. Debt issuance costs associated with the 2.625% Notes, Series B are amortized using the effective interest method through December 2016. The Company determined that the conversion option based on a trading price condition met the definition of a derivative, and should be bifurcated from the debt host and accounted for separately. The fair value of this feature was determined to be de minimis at the date of issuance and continued to be so through December 31, 2016. Philippine Term Loans During the second quarter of 2015, the Company's wholly-owned Philippine subsidiaries and ON Semiconductor, as guarantor, entered into two non-collateralized term loans with an aggregate borrowing capacity of $50.0 million , the terms of which were set forth in agreements by and between the Company’s Philippine subsidiaries and a Philippine bank. During the third quarter of 2015, the Company borrowed the full $50.0 million available under the term loans. Borrowings under the loans bear interest based on 3-month LIBOR plus 2.0% per annum, with interest payable quarterly in arrears. The total borrowed amount must be repaid within five years over 17 equal quarterly principal installments starting at the end of the fourth quarter from the initial drawdown date. U.S. Real Estate Mortgages On August 4, 2014, one of the Company’s U.S. subsidiaries entered into an amended and restated loan agreement with a Scottish Bank for approximately $49.4 million , which was collateralized by certain of the Company's real estate. The loan bears interest payable monthly at an interest rate of approximately 3.12% per annum, with a balloon payment of approximately $26.7 million in 2019 . Malaysia Revolving Line of Credit On September 23, 2014, one of the Company’s wholly-owned Malaysian subsidiaries and ON Semiconductor, as guarantor, entered into a non-collateralized and uncommitted $25.0 million line of credit (the “Malaysia Line of Credit”), the terms of which were set forth in an agreement by and between the Company’s Malaysian subsidiary and a Japanese bank. During the third quarter of 2014, the |
Earnings Per Share and Equity
Earnings Per Share and Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Earnings Per Share and Equity | Note 9: Earnings Per Share and Equity Earnings Per Share Calculations of net income per common share attributable to ON Semiconductor Corporation are as follows (in millions, except per share data): For the years ended December 31, 2016 2015 2014 Net income attributable to ON Semiconductor Corporation $ 182.1 $ 206.2 $ 189.7 Basic weighted average common shares outstanding 415.2 421.2 439.5 Add: Incremental shares for: Dilutive effect of share-based awards 3.8 4.6 4.0 Dilutive effect of convertible notes 1.0 2.0 — Diluted weighted average common shares outstanding 420.0 427.8 443.5 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 0.44 $ 0.49 $ 0.43 Diluted $ 0.43 $ 0.48 $ 0.43 Basic income per common share is computed by dividing net income attributable to ON Semiconductor Corporation by the weighted average number of common shares outstanding during the period. The number of incremental shares from the assumed exercise of stock options and assumed issuance of shares relating to restricted stock units is calculated by applying the treasury stock method. Share-based awards whose impact is considered to be anti-dilutive under the treasury stock method were excluded from the diluted net income per share calculation. The excluded number of anti-dilutive share-based awards was approximately 1.7 million , 1.3 million and 6.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The dilutive impact related to the Company's 1.00% Notes and 2.625% Notes, Series B is determined in accordance with the net share settlement requirements prescribed by ASC Topic 260, Earnings Per Share . Under the net share settlement calculation, the Company's Convertible Notes are assumed to be convertible into cash up to the par value, with the excess of par value being convertible into common stock. A dilutive effect occurs when the stock price exceeds the conversion price for each of the convertible notes. In periods when the share price is lower than the conversion price, including 2014, the impact is anti-dilutive and therefore has no impact on the Company's earnings per share calculations. Additionally, if the average price of the Company's common stock exceeds $25.96 per share for a reporting period, the Company will also include the effect of the additional potential shares, using the treasury stock method, that may be issued related to the warrants that were issued concurrently with the issuance of the 1.00% Notes. Prior to conversion, the convertible note hedges are not considered for purposes of the earnings per share calculations, as their effect would be anti-dilutive. Upon conversion, the convertible note hedges are expected to offset the dilutive effect of the 1.00% Notes when the stock price is above $18.50 per share. See Note 8: ''Long-Term Debt'' for a discussion of the conversion prices and other features of the 1.00% Notes and the 2.625% Notes, Series B. Equity Share Repurchase Program Effective August 1, 2012, the Company implemented a share repurchase program for up to $300.0 million of its common stock over a three year period, exclusive of any fees, commissions or other expenses. This program was terminated on December 1, 2014 with approximately $46.3 million remaining of the total authorized amount. On December 1, 2014, the Company announced a capital allocation policy (the "Capital Allocation Policy") under which the Company intends to return to stockholders approximately 80 percent of free cash flow, less repayments of long-term debt, subject to a variety of factors, including our strategic plans, market and economic conditions and the Board’s discretion. For the purposes of the Capital Allocation Policy, the Company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. The Company also announced a new share repurchase program (the "2014 Share Repurchase Program") pursuant to the Capital Allocation Policy. Under the 2014 Share Repurchase Program, the Company intends to repurchase approximately $1.0 billion of its common shares over a four year period, exclusive of any fees, commissions or other expenses, subject to the same factors and considerations described above. The 2014 Share Repurchase Program was effective December 1, 2014. There were no repurchases of the Company’s common stock under its share repurchase program during the year ended December 31, 2016 as the Company focused on building up cash reserves for the Fairchild Transaction, which was completed on September 19, 2016. Information relating to the Company's share repurchase programs is as follows (in millions, except per share data): For the years ended December 31, 2016 2015(5) 2014 Number of repurchased shares (1) — 30.4 13.9 Beginning accrued share repurchases (2) $ — $ — $ 0.6 Aggregate purchase price — 347.8 121.0 Fees, commissions and other expenses — 0.4 0.2 Less: ending accrued share repurchases (3) — — — Total cash used for share repurchases $ — $ 348.2 $ 121.8 Weighted-average purchase price per share (4) $ — $ 11.46 $ 8.71 Available for future purchases at period end $ 628.2 $ 628.2 $ 976.0 _______________________ (1) None of these shares had been reissued or retired as of December 31, 2016 , but may be reissued or retired by the Company at a later date. (2) Represents unpaid amounts recorded in accrued expenses on the Company's Consolidated Balance Sheet as of the beginning of the period. (3) Represents unpaid amounts recorded in accrued expenses on the Company's Consolidated Balance Sheet as of the end of the period. (4) Exclusive of fees, commissions and other expenses. (5) Includes 5.4 million shares, totaling $70.0 million , repurchased concurrently with the issuance of the 1.00% Notes. See Note 8: ''Long-Term Debt'' for information with respect to the Company's long-term debt. Shares for Restricted Stock Units Tax Withholding Treasury stock is recorded at cost and is presented as a reduction of stockholders' equity in the accompanying consolidated financial statements. Shares, with a fair market value equal to the applicable statutory minimum amount of the employee withholding taxes due, are withheld by the Company upon the vesting of restricted stock units to pay the applicable statutory minimum amount of employee withholding taxes and are considered common stock repurchases. The Company then pays the applicable statutory minimum amount of withholding taxes in cash. The amounts remitted in the years ended December 31, 2016 and 2015 were $12.3 million and $14.7 million , respectively, for which the Company withheld approximately 1.3 million and 1.2 million shares of common stock, respectively, that were underlying the restricted stock units that vested. None of these shares had been reissued or retired as of December 31, 2016 , but may be reissued or retired by the Company at a later date. Non-Controlling Interest The Company's entity which operates assembly and test operations in Leshan, China is owned by a joint venture company, Leshan-Phoenix Semiconductor Company Limited (“Leshan”). The Company owns 80% , of the outstanding equity interests in Leshan and its investment in Leshan has been consolidated in the Company's financial statements. At December 31, 2016 , the non-controlling interest balance was $21.8 million . This balance included the non-controlling interest's $2.4 million share of the earnings for the year ended December 31, 2016 offset by $4.3 million of dividends paid to the non-controlling shareholder. At December 31, 2015 , the non-controlling interest balance was $23.7 million . This balance included the non-controlling interest's $2.8 million share of the earnings for the year ended December 31, 2015 . During the year ended December 31, 2014 , the Company acquired an additional 10% of the outstanding equity interest in Leshan for approximately $20.4 million , which was greater than the $10.1 million carrying value of the representative interest in Leshan at the time of the transaction. The Company recorded the $10.3 million difference between the purchase price and the carrying value of the non-controlling interest as additional paid-in capital for the year ended December 31, 2014 . This balance was further decreased to $20.9 million at December 31, 2014 due to the non-controlling interest's $2.4 million share of the earnings for the year ended December 31, 2014 , offset by approximately $4.2 million of dividends paid to the non-controlling stockholder. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 10: Share-Based Compensation Total share-based compensation expense related to the Company's employee stock options, restricted stock units, stock grant awards and ESPP for the years ended December 31, 2016 , 2015 and 2014 was comprised as follows (in millions): Year Ended December 31, 2016 2015 2014 Cost of revenues $ 8.0 $ 7.7 $ 6.8 Research and development 11.1 9.2 8.7 Selling and marketing 9.8 8.5 8.1 General and administrative 27.2 21.5 22.2 Share-based compensation expense before income taxes 56.1 46.9 45.8 Related income tax benefits (1) — — — Share-based compensation expense, net of taxes $ 56.1 $ 46.9 $ 45.8 ____________________ (1) A majority of the Company’s share-based compensation relates to its domestic subsidiaries; therefore, no related deferred income tax benefits are recorded due to historical net operating losses at those subsidiaries. At December 31, 2016 , total unrecognized estimated share-based compensation expense, net of estimated forfeitures, related to non-vested stock options was less than $0.1 million , which is expected to be recognized over a weighted-average period of 0.6 years. At December 31, 2016 , total unrecognized share-based compensation expense, net of estimated forfeitures, related to non-vested restricted stock units with time-based service conditions and performance-based vesting criteria was $61.3 million , which is expected to be recognized over a weighted-average period of 1.8 years. The total intrinsic value of stock options exercised during the year ended December 31, 2016 was $6.8 million . The Company recorded cash received from the exercise of stock options of $14.9 million and cash from the issuance of shares under the ESPP of $15.0 million and no related tax benefits during the year ended December 31, 2016 . Upon option exercise, release of restricted stock units, stock grant awards, or completion of a purchase under the ESPP, the Company issues new shares of common stock. Share-Based Compensation Information The fair value per unit of each time based and performance based RSU and stock grant award is determined on the grant date and is equal to the Company's closing stock price on the grant date. The fair value of each option grant is estimated on the date of grant using a lattice-based option valuation model. The lattice-based model uses: (1) a constant volatility; (2) an employee exercise behavior model (based on an analysis of historical exercise behavior); and (3) the treasury yield curve to calculate the fair value of each option grant. There were no employee stock options granted during the years ended December 31, 2016 , 2015 and 2014. Share-based compensation expense recognized in the Consolidated Statement of Operations and Comprehensive Income is based on awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Pre-vesting forfeitures for stock options were estimated to be approximately 11% in the years ended December 31, 2016 , 2015 and 2014 , respectively. Pre-vesting forfeitures for restricted stock units were estimated to be approximately 5% in the years ended December 31, 2016 , 2015 and 2014 , respectively. Plan Descriptions On February 17, 2000, the Company adopted the 2000 Stock Incentive Plan (the "2000 SIP") which provided key employees, directors and consultants with various equity-based incentives as described in the plan document. Prior to February 17, 2010, stockholders had approved amendments to the 2000 SIP which increased the number of shares of the Company's common stock reserved and available for grant to 30.5 million , plus an additional number of shares of the Company's common stock equal to 3% of the total number of outstanding shares of common stock effective automatically on January 1st of each year beginning January 1, 2005 and ending January 1, 2010. On February 17, 2010, the 2000 SIP expired and the Company ceased granting under the plan. Options granted pursuant to the 2000 SIP that remain outstanding continue to be exercisable or subject to vesting pursuant to the underlying option agreements. On March 23, 2010, the Company adopted the Amended and Restated SIP, which was subsequently approved by the Company's stockholders at the annual stockholder meeting on May 18, 2010. The Amended and Restated SIP provides key employees, directors and consultants with various equity-based incentives as described in the plan document. The Amended and Restated SIP is administered by the Board of Directors or a committee thereof, which is authorized to determine, among other things, the key employees, directors or consultants who will receive awards under the plan, the amount and type of award, exercise prices or performance criteria, if applicable, and vesting schedules. On May 15, 2012, stockholders approved certain amendments to the Amended and Restated SIP to increase the number of shares of common stock subject to all awards under the Amended and Restated SIP by 33.0 million to 59.1 million , exclusive of shares of common stock subject to awards that were previously granted pursuant to the 2000 SIP that have or will become available for grant pursuant to the Amended and Restated SIP. Generally, the options granted under the 2000 SIP and Amended and Restated SIP vest over a period of three to four years and have a contractual term of 10 years and 7 years, respectively. Under both plans, certain outstanding options vest automatically upon a change of control, as defined in the respective plan document, provided the option holder is employed by the Company on the date of the change in control. Certain other outstanding options may also vest upon a change of control if the Board of Directors of the Company, at its discretion, provides for acceleration of the vesting of said options. Generally, upon the termination of an option holder's employment, all unvested options will immediately terminate and vested options will generally remain exercisable for a period of 90 days after the date of termination ( one year in the case of death or disability). Generally, restricted stock units granted under the 2000 SIP and the Amended and Restated SIP vest over three years or based on the achievement of certain performance criteria and are payable in shares of the Company's stock upon vesting. As of December 31, 2016 , there was an aggregate of 19.8 million shares of common stock available for grant under the Amended and Restated SIP. Stock Options A summary of stock option transactions for all stock option plans follows (in millions except per share and contractual term data): Year Ended December 31, 2016 Number of Shares Weighted-Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2015 5.2 $ 7.85 Granted — — Exercised (1.8 ) 8.03 Canceled (0.1 ) 8.53 Outstanding at December 31, 2016 3.3 $ 7.75 1.78 $ 16.7 Exercisable at December 31, 2016 3.3 $ 7.75 1.78 $ 16.7 As of December 31, 2016 , the Company had 3.3 million of outstanding stock options, representing stock options that previously vested and those which are expected to vest, with a weighted-average exercise price of $ 7.75 . Net stock options, after forfeitures and cancellations, granted during the years ended December 31, 2016 and December 31, 2015 represented (0.01)% and (0.02)% of outstanding shares as of the beginning of each such fiscal year, respectively. Additional information about stock options outstanding at December 31, 2016 with exercise prices less than or above $ 12.76 per share, the closing price of the Company's common stock at December 31, 2016 , follows (number of shares in millions): Exercisable Unexercisable Total Exercise Prices Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Less than $12.76 3.3 $ 7.75 — $ — 3.3 $ 7.75 Above $12.76 — $ — — $ — — $ — Total outstanding 3.3 $ 7.75 — $ — 3.3 $ 7.75 Restricted Stock Units A summary of the restricted stock unit transactions for the year ended December 31, 2016 follows (number of shares in millions): Number of Shares Weighted-Average Grant Date Fair Value Nonvested shares of restricted stock units at December 31, 2015 8.5 $ 10.52 Granted 6.2 9.50 Achieved — — Released (4.3 ) 9.80 Canceled (0.7 ) 11.75 Nonvested shares of restricted stock units at December 31, 2016 9.7 $ 10.10 During 2016 , the Company awarded 2.0 million restricted stock units to certain officers and employees of the Company that vest upon the achievement of certain performance criteria. The number of units expected to vest is evaluated each reporting period and compensation expense is recognized for those units for which achievement of the performance criteria is considered probable. As of December 31, 2016 , unrecognized compensation expense, net of estimated forfeitures related to non-vested restricted stock units granted under the Amended and Restated SIP with time-based and performance-based conditions, was $45.2 million and $16.1 million , respectively. For restricted stock units with time-based service conditions, expense is being recognized over the vesting period; for restricted stock units with performance criteria, expense is recognized over the period during which the performance criteria is expected to be achieved. Unrecognized compensation cost related to awards with certain performance criteria that are not expected to be achieved is not included here. Total compensation expense related to both performance-based and service-based restricted stock units was $49.4 million for the year ended December 31, 2016 , which included $31.7 million for restricted stock units with time-based service conditions that were granted in 2016 and prior that are expected to vest. Stock Grant Awards During the year ended December 31, 2016 , the Company granted 0.2 million shares of stock under stock grant awards to certain directors of the Company with immediate vesting at a weighted-average grant date fair value of $9.81 per share. Total compensation expense related to stock grant awards for the year ended December 31, 2016 was approximately $1.8 million . Employee Stock Purchase Plan On February 17, 2000, the Company adopted the ESPP. Subject to local legal requirements, each of the Company's eligible employees may elect to contribute up to 10% of eligible payroll applied towards the purchase of shares of the Company's common stock at a price equal to 85% of the fair market value of such shares as determined under the plan. Employees are limited to annual purchases of $25,000 under this plan. In addition, during each quarterly offering period, employees may not purchase stock exceeding the lesser of (i) 500 shares, or (ii) the number of shares equal to $6,250 divided by the fair market value of the stock on the first day of the offering period. During the year ended December 31, 2016 , employees purchased approximately 1.8 million shares under the ESPP. During the years ended December 31, 2015 and 2014 , employees purchased approximately 1.7 million and 1.3 million shares, respectively, under the ESPP. Through May 2013, stockholders had approved amendments to the ESPP, which increased the number of shares of the Company's common stock issuable thereunder to 18.0 million shares. On May 20, 2015, stockholders approved an amendment to the Company’s ESPP which increased the number of shares reserved and available to be issued pursuant to the ESPP by 5.5 million to a total of 23.5 million . As of December 31, 2016 , there were approximately 4.9 million shares available for issuance under the ESPP. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Note 11: Employee Benefit Plans Defined Benefit Plans The Company maintains defined benefit plans for employees of certain of its foreign subsidiaries. Such plans conform to local practice in terms of providing minimum benefits mandated by law, collective agreements or customary practice. The Company recognizes the aggregate amount of all overfunded plans as assets and the aggregate amount of all underfunded plans as liabilities in its financial statements. The Company's expected long-term rate of return on plan assets is updated at least annually, taking into consideration its asset allocation, historical returns on similar types of assets and the current economic environment. For estimation purposes, the Company assumes its long-term asset mix will generally be consistent with the current mix. The Company determines its discount rates using highly rated corporate bond yields and government bond yields. Benefits under all of the Company's plans are valued utilizing the projected unit credit cost method. The Company's policy is to fund its defined benefit plans in accordance with local requirements and regulations. The funding is primarily driven by the Company's current assessment of the economic environment and projected benefit payments of its foreign subsidiaries. The Company's measurement date for determining its defined benefit obligations for all plans is December 31 of each year. The Company recognizes actuarial gains and losses in the period the Company's annual pension plan actuarial valuations are prepared, which generally occurs during the fourth quarter of each year, or during any interim period where a revaluation is deemed necessary. The total liability at December 31, 2016 includes $8.3 million of accrued pension liabilities assumed by the Company in connection with the Fairchild acquisition. 2014 Activity and Effect of Voluntary Retirement Programs The Company recorded a pension curtailment gain of $6.6 million included in Restructuring, asset impairments and other, net for the year ended December 31, 2014 related to the former System Solution Group voluntary retirement programs and KSS facility closure. The Company recognized approximately $7.4 million of actuarial losses associated with these programs for the year ended December 31, 2014 . The following is a summary of the status of the Company's foreign defined benefit pension plans and the net periodic pension cost (dollars in millions): Year Ended December 31, 2016 2015 2014 Service cost $ 9.0 $ 8.4 $ 9.3 Interest cost 4.5 3.8 5.7 Expected return on plan assets (3.9 ) (3.5 ) (3.4 ) Curtailment gain — — (6.6 ) Actuarial and other (gain) loss 10.1 (5.0 ) 12.3 Total net periodic pension cost $ 19.7 $ 3.7 $ 17.3 Weighted average assumptions Discount rate 1.60 % 1.82 % 1.64 % Expected return on plan assets 3.20 % 2.46 % 2.25 % Rate of compensation increase 3.05 % 2.96 % 3.03 % December 31, 2016 2015 Change in projected benefit obligation (PBO) Projected benefit obligation at the beginning of the year $ 234.4 $ 241.8 Service cost 9.0 8.4 Interest cost 4.5 3.8 Net actuarial (gain) loss 10.6 (5.2 ) Acquired PBO from Fairchild 17.4 — Benefits paid by plan assets (4.9 ) (3.8 ) Benefits paid by the Company (5.9 ) (2.7 ) Translation gain and other (3.3 ) (7.9 ) Projected benefit obligation at the end of the year $ 261.8 $ 234.4 Accumulated benefit obligation at the end of the year $ 222.4 $ 198.2 Change in plan assets Fair value of plan assets at the beginning of the year $ 147.2 $ 145.7 Acquired assets from Fairchild 9.1 — Actual return on plan assets 4.4 3.3 Benefits paid from plan assets (4.9 ) (3.8 ) Employer contributions 6.1 7.3 Translation and other loss (2.2 ) (5.3 ) Fair value of plan assets at the end of the year $ 159.7 $ 147.2 Plans with underfunded or non-funded projected benefit obligation Projected benefit obligation $ 256.1 $ 229.3 Fair value of plan assets 152.9 140.8 Plans with underfunded or non-funded accumulated benefit obligation Accumulated benefit obligation $ 138.9 $ 158.1 Fair value of plan assets $ 63.7 $ 95.8 Amounts recognized in the balance sheet consist of Current liabilities (0.1 ) (0.1 ) Non-current liabilities (102.0 ) (87.1 ) Funded status $ (102.1 ) $ (87.2 ) As of December 31, 2016 and 2015 , respectively, the assets of the Company's foreign plans were invested 18% and 18% in equity securities, 20% and 21% in debt securities, including corporate bonds, 44% and 47% in insurance and investment contracts, 3% and 3% in cash and 15% and 11% in other investments, including foreign government securities, equity securities and mutual funds. This asset allocation is based on the anticipated required funding amounts, timing of benefit payments, historical returns on similar assets and the influence of the current economic environment. The long term rate of return on plan assets was determined using the weighted-average method, which incorporates factors that include the historical inflation rates, interest rate yield curve and current market conditions. Plan Assets The Company's overall investment strategy is to focus on stable and low credit risk investments aimed at providing a positive rate of return to the plan assets. The Company has an investment mix with a wide diversification of asset types and fund strategies that are aligned with each region and foreign location's economy and market conditions. Investments in government securities are generally guaranteed by the respective government offering the securities. Investments in corporate bonds, equity securities, and foreign mutual funds are made with the expectation that these investments will give an adequate rate of long-term returns despite periods of high volatility. Other types of investments include investments in cash deposits, money market funds and insurance contracts. The fair value measurement of plan assets in the Company's foreign pension plans as of December 31, 2016 and 2015 , was as follows (in millions): December 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset Category Cash/Money Markets $ 4.9 $ 4.9 $ — $ — Foreign Government/Treasury Securities (1) 15.6 15.6 — — Corporate Bonds, Debentures (2) 32.0 — 32.0 — Equity Securities (3) 28.8 — 28.8 — Mutual Funds 8.8 — 8.8 — Investment and Insurance Annuity Contracts (4) 69.6 — 22.4 47.2 $ 159.7 $ 20.5 $ 92.0 $ 47.2 December 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset Category Cash/Money Markets $ 4.6 $ 4.6 $ — $ — Foreign Government/Treasury Securities (1) 9.0 8.3 0.7 — Corporate Bonds, Debentures (2) 30.3 — 29.7 0.6 Equity Securities (3) 26.7 — 26.7 — Mutual Funds 7.7 — 7.7 — Investment and Insurance Annuity Contracts (4) 68.9 — 21.9 47.0 $ 147.2 $ 12.9 $ 86.7 $ 47.6 _______________________ (1) Includes investments primarily in guaranteed return securities. (2) Includes investments in government bonds and corporate bonds of developed countries, emerging market government bonds, emerging market corporate bonds and convertible bonds. (3) Includes investments in equity securities of developed countries and emerging markets. (4) Includes certain investments with insurance companies which guarantee a minimum rate of return on the investment. When available, the Company uses observable market data, including pricing on recently closed market transactions and quoted prices, which are included in Level 2. When data is unobservable, valuation methodologies using comparable market data are utilized and included in Level 3. Activity during the year ended December 31, 2016 for plan assets with fair value measurement using significant unobservable inputs (Level 3) was as follows (in millions): Corporate Bonds, Debentures Investment and Insurance Contracts Total Balance at December 31, 2014 $ 0.7 $ 51.5 $ 52.2 Actual return on plan assets (0.1 ) — (0.1 ) Purchase, sales and settlements — 0.6 0.6 Foreign currency impact — (5.1 ) (5.1 ) Balance at December 31, 2015 $ 0.6 $ 47.0 $ 47.6 Actual return on plan assets — 3.3 3.3 Purchase, sales and settlements (0.6 ) (0.4 ) (1.0 ) Foreign currency impact — (2.7 ) (2.7 ) Balance at December 31, 2016 $ — $ 47.2 $ 47.2 The expected benefit payments for the Company's defined benefit plans by year from 2017 through 2021 and the five years thereafter are as follows (in millions): 2017 $ 3.8 2018 4.9 2019 5.6 2020 7.3 2021 10.8 Five years thereafter 73.7 Total $ 106.1 The total underfunded status was $102.1 million at December 31, 2016 . The Company expects to contribute $8.3 million during 2017 to its foreign defined benefit plans. Defined Contribution Plans The Company has a deferred compensation savings plan for all eligible U.S. employees established under the provisions of Section 401(k) of the Internal Revenue Code. Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company has elected to have a matching contribution of 100% of the first 4% of employee contributions. The Company recognized $14.0 million , $13.6 million and $8.5 million of expense relating to matching contributions in 2016 , 2015 and 2014 , respectively. Certain foreign subsidiaries have defined contribution plans in which eligible employees participate. The Company recognized compensation expense of $8.9 million , $3.1 million and $3.2 million relating to these plans for the years ended 2016 , 2015 and 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12: Commitments and Contingencies Leases The following is a schedule by year of future minimum lease obligations under non-cancelable operating leases as of December 31, 2016 (in millions): Year Ending December 31, 2017 $ 37.6 2018 26.5 2019 17.9 2020 13.5 2021 9.8 Thereafter 43.6 Total $ 148.9 The Company's existing leases do not contain significant restrictive provisions; however, certain leases contain renewal options and provisions for payment by the Company of real estate taxes, insurance and maintenance costs. Total rent expense associated with operating leases for 2016 , 2015 , and 2014 was $31.1 million , $27.7 million , and $22.7 million , respectively. Purchase Obligations The Company has agreements with suppliers, external manufacturers and other parties to purchase inventory, manufacturing services and other goods and services. The following is a schedule by year of future minimum purchase obligations under non-cancelable arrangements in the ordinary course of business as of December 31, 2016 (in millions): Year Ending December 31, 2017 $ 291.1 2018 32.9 2019 27.9 2020 17.3 2021 14.3 Thereafter 19.0 Total $ 402.5 Environmental Contingencies The Company’s headquarters in Phoenix, Arizona is located on property that is a “Superfund” site, which is a property listed on the National Priorities List and subject to clean-up activities under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"). Motorola and Freescale have been involved in the cleanup of on-site solvent contaminated soil and groundwater and off-site contaminated groundwater pursuant to consent decrees with the State of Arizona. As part of the Company's August 4, 1999 recapitalization (the "Recapitalization"), Motorola retained responsibility for this contamination, and Motorola and Freescale have agreed to indemnify the Company with respect to remediation costs and other costs or liabilities related to this matter. As part of the Recapitalization, the Company received various manufacturing facilities, one of which is located in the Czech Republic. In regards to this site, the Company has ongoing remediation projects to respond to releases of hazardous substances that occurred prior to the Recapitalization during the years that this facility was operated by government-owned entities. In each case, the remediation project consists primarily of monitoring groundwater wells located on-site and off-site with additional action plans developed to respond in the event activity levels are exceeded at each of the respective locations. The government of the Czech Republic has agreed to indemnify the Company and the respective subsidiaries, subject to specified limitations, for remediation costs associated with this historical contamination. Based upon the information available, total future remediation costs to the Company are not expected to be material. The Company’s design center in East Greenwich, Rhode Island is located on property that has localized soil contamination. In connection with the purchase of the facility, the Company entered into a Settlement Agreement and covenant not to sue with the State of Rhode Island. This agreement requires that remedial actions be undertaken and a quarterly groundwater monitoring program be initiated by the former owners of the property. Based on the information available, any costs to the Company in connection with this matter have not been, and are not expected to be, material. As a result of the acquisition of AMIS, the Company is a “primary responsible party” to an environmental remediation and cleanup at AMIS’s former corporate headquarters in Santa Clara, California. Costs incurred by AMIS have included implementation of the clean-up plan, operations and maintenance of remediation systems, and other project management costs. However, AMIS’s former parent company, a subsidiary of Nippon Mining, contractually agreed to indemnify AMIS and the Company for any obligations relating to environmental remediation and cleanup at this location. Based on the information available, any costs to the Company in connection with this matter have not been, and are not expected to be, material. The Company's former front-end manufacturing location in Aizu, Japan is located on property where soil and ground water contamination have been detected. The Company believes that the contamination originally occurred during a time when the facility was operated by a prior owner. The Company has worked with local authorities to implement a remediation plan and expects remaining remediation costs to be covered by insurance. Based on information available, any costs to the Company in connection with this matter have not been, and are not expected to be, material. Through its acquisition of Fairchild, the Company acquired facilities in South Portland, Maine and West Jordan, Utah. These two facilities have ongoing environmental remediation projects to respond to certain releases of hazardous substances that occurred prior to the leveraged recapitalization of Fairchild from its former parent company, National Semiconductor Corporation, which is now owned by Texas Instruments, Inc. Although the Company may incur certain liabilities with respect to the above remediation projects, pursuant to the asset purchase agreement entered into in connection with the Fairchild recapitalization, National Semiconductor Corporation agreed to indemnify Fairchild, without limitation and for an indefinite period of time, for all future costs related to these projects. Additionally, under the 1999 asset purchase agreement pursuant to which Fairchild purchased the power device business of Samsung Electronics Co., Ltd. (“Samsung”), Samsung agreed to indemnify Fairchild in an amount up to $150.0 million for remediation costs and other liabilities related to historical contamination at Samsung’s Bucheon, South Korea operations. The costs incurred to respond to the above conditions and projects have not been, and are not expected to be, material, and any future payments the Company makes in connection with such liabilities are not expected to be material and are not expected to have a material adverse effect on our consolidated financial position, results of operations or statements of cash flows. The Company was notified by the Environmental Protection Agency (“EPA”) that it has been identified as a “potentially responsible party” (“PRP”) under CERCLA in the Chemetco Superfund matter. Chemetco is a defunct reclamation services supplier who operated in Illinois at what is now a Superfund site. The Company used Chemetco for reclamation services. The EPA is pursuing Chemetco customers for contribution to the site cleanup activities. The Company has joined a PRP group which is cooperating with the EPA in the evaluation and funding of the cleanup. Based on the information available, any costs to the Company in connection with this matter have not been, and are not expected to be, material. Financing Contingencies In the normal course of business, the Company provides standby letters of credit or other guarantee instruments to certain parties initiated by either the Company or its subsidiaries, as required for transactions such as, but not limited to, purchase commitments, agreements to mitigate collection risk, leases, utilities or customs guarantees. The Company's senior revolving credit facility includes $15.0 million of availability for the issuance of letters of credit. There were no letters of credit outstanding under the Revolving Credit Facility as of December 31, 2016 . The Company had outstanding guarantees and letters of credit outside of its senior revolving credit facility totaling $6.7 million as of December 31, 2016 . As part of obtaining financing in the normal course of business, the Company issued guarantees related to certain of its capital lease obligations, equipment financing, lines of credit and real estate mortgages, which totaled approximately $130.7 million as of December 31, 2016 . The Company is also a guarantor of SCI LLC's non-collateralized loan with SMBC, which had a balance of $160.4 million as of December 31, 2016 . See Note 8: ''Long-Term Debt'' for further information with respect to the Company's loan with SMBC. Based on historical experience and information currently available, the Company believes that in the foreseeable future it will not be required to make payments under the standby letters of credit or guarantee arrangements for the foreseeable future. Indemnification Contingencies The Company is a party to a variety of agreements entered into in the ordinary course of business pursuant to which it may be obligated to indemnify the other parties for certain liabilities that arise out of or relate to the subject matter of the agreements. Some of the agreements entered into by the Company require it to indemnify the other party against losses due to IP infringement, property damage including environmental contamination, personal injury, failure to comply with applicable laws, the Company’s negligence or willful misconduct, or breach of representations and warranties and covenants related to such matters as title to sold assets. The Company faces risk of exposure to warranty and product liability claims in the event that its products fail to perform as expected or such failure of its products results, or is alleged to result, in economic damage, bodily injury or property damage. In addition, if any of the Company’s designed products are alleged to be defective, the Company may be required to participate in their recall. Depending on the significance of any particular customer and other relevant factors, the Company may agree to provide more favorable rights to such customer for valid defective product claims. The Company and its subsidiaries provide for indemnification of directors, officers and other persons in accordance with limited liability agreements, certificates of incorporation, by-laws, articles of association or similar organizational documents, as the case may be. The Company maintains directors’ and officers’ insurance, which should enable it to recover a portion of any future amounts paid. On February 19, 2016, the Board of Directors of the Company approved a form of indemnification agreement (the “Indemnification Agreement”) and authorized the Company to enter into an indemnification agreement in substantially the form of the Indemnification Agreement with each of its directors and executive officers (each, an “Indemnitee”). The Indemnification Agreement clarifies and supplements the indemnification rights and obligations of the Indemnitee and Company already included in the Company’s Certificate of Incorporation and Bylaws. Under the terms of the Indemnification Agreement, subject to certain exceptions specified in the Indemnification Agreement, the Company will indemnify the Indemnitee to the fullest extent permitted by Delaware law in the event the Indemnitee becomes subject to or a participant in certain claims or proceedings as a result of the Indemnitee’s service as a director or officer. The Company will also, subject to certain exceptions and repayment conditions, advance to the Indemnitee specified indemnifiable expenses incurred in connection with such claims or proceedings. The Fairchild Agreement provides for indemnification and insurance rights in favor of Fairchild’s then current and former directors, officers and employees. Specifically, the Company has agreed that, for no fewer than six years following the Fairchild acquisition, (a) it will indemnify and hold harmless each such indemnitee against losses and expenses (including advancement of attorneys’ fees and expenses) in connection with any proceeding asserted against the indemnified party in connection with such person’s servings as a director, officer, employee or other fiduciary of Fairchild or its subsidiaries prior to the effective time of the acquisition, (b) it will maintain in effect all provisions of the certificate of incorporation or bylaws of Fairchild or any of its subsidiaries or any other agreements of Fairchild or any of its subsidiaries with any indemnified party regarding elimination of liability, indemnification of officers, directors and employees and advancement of expenses in existence on the date of the Fairchild Agreement for acts or omissions occurring prior to the effective time of the acquisition and (c) subject to certain qualifications, it will provide to Fairchild’s then current directors and officers an insurance and indemnification policy that provides coverage for events occurring prior to the effective time of the acquisition that is no less favorable than Fairchild’s then-existing policy, or, if insurance coverage that is no less favorable is unavailable, the best available coverage. While the Company’s future obligations under certain agreements may contain limitations on liability for indemnification, other agreements do not contain such limitations and under such agreements it is not possible to predict the maximum potential amount of future payments due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under any of these indemnities have not had a material effect on the Company’s business, financial condition, results of operations or cash flows. Additionally, the Company does not believe that any amounts that it may be required to pay under these indemnities in the future will be material to the Company’s business, financial position, results of operations or cash flows. Legal Matters From time to time, we are party to various legal proceedings arising in the ordinary course of business, including indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made for disclosure. Although litigation is inherently unpredictable, the Company believes that it has adequate provisions for any probable and estimable losses. It is possible, nevertheless, that the Company’s consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the resolution of a legal proceeding. The Company’s estimates do not represent its maximum exposure. Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expensed as incurred. The Company is currently involved in a variety of legal matters that arise in the normal course of business. Based on information currently available, except as disclosed below, the Company is not involved in any pending or threatened legal proceedings that it believes could reasonably be expected to have a material adverse effect on its financial condition, results of operations or liquidity. The litigation process and the administrative process at the United States Patent and Trademark Office (“USPTO”) are inherently uncertain, and the Company cannot guarantee that the outcome of these matters will be favorable for it. Patent Litigation with Power Integrations, Inc. There are eight outstanding civil litigation proceedings with Power Integrations, Inc. (“PI”), five of which were pending between PI and Fairchild prior to the acquisition of Fairchild. The Company is vigorously defending the lawsuits filed by PI and believes that it has strong defenses. There are also 12 outstanding administrative proceedings in which the Company is challenging the validity of PI patents at the USPTO. The outcome of any litigation is inherently uncertain and difficult to predict. Any estimate or statement in this Form 10-K regarding any reserve or the estimated range of possible losses is made solely in compliance with applicable GAAP requirements, and is not a statement or admission that the Company is or should be liable in any amount, or that any arguments, motions or appeals before any Court lack merit or are subject to impeachment. To the contrary, the Company believes that it has significant and meritorious grounds for judgment in its favor with respect to all of the PI cases and that the Company’s appeals or motions currently pending at the district court level will significantly reduce or eliminate all prior adverse jury verdicts. Subject to the foregoing, as of the date of the filing of this Form 10-K, the Company estimates its range of possible losses for all PI cases to be between approximately $4 million and $20 million . Power Integrations v. Fairchild Semiconductor International, Inc. et al. (October 20, 2004, Delaware, 1:04-cv-01371-LPS): PI filed this lawsuit in 2004 in the U.S. District Court for the District of Delaware against Fairchild and its wholly owned subsidiary, Fairchild Semiconductor Corporation. PI alleged that certain of Fairchild’s pulse width modulation (“PWM”) integrated circuit products infringed four PI U.S. patents and sought a permanent injunction preventing Fairchild from manufacturing, selling or offering the products for sale in the United States, or from importing the products into the United States, as well as money damages for past infringement. In October 2006, a jury returned a verdict finding that thirty-three of Fairchild’s PWM products willfully infringed one or more of seven claims asserted in the four patents and assessed damages against Fairchild. Fairchild voluntarily stopped U.S. sales and importation of those products in 2007 and has been offering replacement products since 2006. In December 2008, the judge overseeing the case reduced the jury’s 2006 damages award from $34.0 million to approximately $6.1 million and ordered a new trial on the issue of willfulness. Following the new trial held in June 2009, the court found Fairchild’s infringement to have been willful, and in January 2011 the court awarded PI final damages in the amount of $12.2 million . Fairchild appealed the final damages award, willfulness finding, and other issues to the U.S. Court of Appeals for the Federal Circuit. In March 2013, the Court of Appeals vacated almost the entire damages award, ruling that there was no basis upon which a reasonable jury could find Fairchild liable for induced infringement. The Court of Appeals also vacated the earlier judgment of willful patent infringement. The full Court of Appeals and the Supreme Court of the United States have since denied PI’s request to review the Court of Appeals ruling. The Court of Appeals instructed the lower court to conduct further proceedings to determine damages based on approximately $500,000 to $750,000 worth of sales and imports of affected products, and this case remains in the District Court of Delaware on that basis. The Company believes that damages on the basis of that level of infringing activity would not be material. PI has further requested the lower court to re-instate the earlier judgment of willful infringement, and that request remains pending with the court. Power Integrations v. Fairchild Semiconductor International, Inc. et al. (May 23, 2008, Delaware, 1:08-cv-00309-LPS): This lawsuit was initiated by PI in 2008 in the U.S. District Court for the District of Delaware against Fairchild, Fairchild Semiconductor Corporation and its wholly owned subsidiary, System General Corporation (now named Fairchild (Taiwan) Corporation), alleging infringement of three patents. Of the three patents asserted in this lawsuit, two had been asserted against Fairchild and Fairchild Semiconductor Corporation in the October 2004 lawsuit described above. In 2011, PI added a fourth patent to this case. On October 14, 2008, Fairchild Semiconductor Corporation and System General Corporation filed a patent infringement lawsuit against PI in the U.S. District Court for the District of Delaware, alleging that certain PWM integrated circuit products infringe one or more of two U.S. patents owned by System General Corporation. The lawsuit sought monetary damages and an injunction preventing the manufacture, use, sale, offer for sale or importation of PI products found to infringe the asserted patents. The lawsuits were consolidated and heard together in a jury trial in April 2012, during which the jury found that PI infringed one of the two U.S. patents owned by Fairchild (Taiwan) Corporation and upheld the validity of both of the System General Corporation patents. In the same verdict, the jury found that Fairchild infringed two of four U.S. patents asserted by PI and that Fairchild had induced its customers to infringe the asserted patents. (The court later ruled that Fairchild infringed one other asserted PI patent that the jury found was not infringed.) The jury also upheld the validity of the asserted PI patents. On June 30, 2014, the court issued an order enjoining Fairchild from making, using, selling, offering to sell or importing into the United States the products found to infringe the PI patents as well as certain products that were similar to the products found to infringe. Willfulness and damages will be determined in the next phase of the case, which has yet to be scheduled. Fairchild and PI appealed the liability phase of this trial to the U.S. Court of Appeals for the Federal Circuit, which heard arguments in July 2016 and issued a decision in December 2016. In the decision, the appeals court vacated the jury’s finding that Fairchild induced infringement of PI’s patents, held that one of PI’s patents was invalid, vacated the permanent injunction against Fairchild, reversed the jury’s finding that PI infringed the Fairchild (Taiwan) Corporation patent, and remanded the case back to the lower court for further proceedings consistent with these rulings. Power Integrations v. Fairchild Semiconductor International Inc. et al. (November 4, 2009, Northern District of California, 3:09-cv-05235-MMC): In 2009, PI sued Fairchild in the U.S. District Court for the Northern District of California, alleging that several of Fairchild’s products infringe three of PI’s patents. Fairchild filed counterclaims asserting that PI infringed two Fairchild patents. A trial was held in February 2014 on two PI patents and one Fairchild patent. In March 2014, the jury found that Fairchild willfully infringed both PI patents, awarding PI $105.0 million in damages and finding that PI did not infringe the Fairchild patent. Both parties filed various post-trial motions, which were denied by the court with the exception of Fairchild’s motion to set aside the jury’s determination that it acted willfully. In September 2014, the court granted Fairchild’s motion and determined that, as a matter of law, Fairchild’s actions were not willful. Fairchild continued to challenge several other aspects of the verdict during post-trial review. Specifically, Fairchild asserted that the damages award included legal and evidentiary defects that were inconsistent with recent rulings by the U.S. Court of Appeals for the Federal Circuit. In November 2014, the trial court ruled that the jury lacked sufficient evidence on which to base its damages award and, consequently, vacated the $105.0 million verdict and ordered a second trial on damages. In February 2015, the court denied PI’s request to enjoin the Fairchild products that were found to infringe, finding, among other things, that the evidence at trial failed to establish a causal connection between the alleged harm and the alleged infringement. The court ruled that PI could request an injunction after the second trial on damages, but PI has since indicated that it no longer intends to pursue a permanent injunction on the products found to infringe. The second damages trial was held in December 2015. In December 2015, a jury awarded PI $139.8 million in damages. Fairchild filed a number of post-trial motions challenging the verdict on several grounds, including several that are similar to challenges to the earlier damages verdict in the case, and the court ruled against Fairchild on these motions and awarded PI approximately $7 million in pre-judgment interest. Following the court’s rulings on these issues, PI moved the court for the enhanced damages and attorneys’ fees in January 2016, and Fairchild opposed that motion. On January 23, 2017 the court reinstated the jury’s willful infringement finding from March 2014, but denied PI’s motion for enhanced damages and attorneys’ fees in its entirety. The Company plans to appeal the current damages award as well as the 2014 verdict finding that PI’s patents were infringed and valid. Further, all claims of the two PI patents found to be infringed by Fairchild are under review in already-instituted inter partes administrative proceedings at the USPTO. Fairchild Semiconductor International Inc. et al. v. Power Integrations (May 1, 2012, Delaware, 1:12-cv-00540-LPS): In May 2012, Fairchild sued PI in the U.S. District Court for the District of Delaware. The lawsuit accuses PI’s LinkSwitch-PH LED power conversion products of violating three of Fairchild’s patents. PI filed counterclaims of patent infringement against Fairchild, asserting five PI patents. Of those five patents, the court granted Fairchild summary judgment of no infringement on one, PI voluntarily withdrew a second and was forced to remove a third patent during the trial, which began in May 2015. In June 2015, the jury found that PI induced infringement of Fairchild’s patent rights and awarded Fairchild $2.4 million in damages. The same jury found that Fairchild infringed a PI patent and awarded PI damages of $100,000 . Following the issuance of the December 2016 appeals court decision in the litigation filed in Delaware in 2008 as described above, PI has asked the court in this action (which is the same court as the 2008 Delaware case) to vacate the jury’s finding that PI infringed Fairchild’s patent due to overlapping legal issues already decided by the appeals court. The Company continues to investigate the applicability of the December 2016 appeals court decision to this action as it may reduce Fairchild’s liability regarding the PI patent that the jury found Fairchild infringed. Power Integrations v. Fairchild Semiconductor International Inc. et al. (October 21, 2015, Northern District of California, 3:15-cv-04854 MMC): In 2015, PI filed another complaint for patent infringement against Fairchild in the U.S. District Court for the Northern District of California, alleging Fairchild's switch mode power supply products willfully infringed two PI patents related to frequency jitter and light load frequency reduction. In the complaint, PI is seeking a permanent injunction, unspecified damages, a trebling of damages, and an accounting of costs and fees. Fairchild answered and counterclaimed, alleging infringement by PI of four Fairchild patents related to aspects of PI’s power conversion products. The lawsuit is in its earliest stages, and has been stayed pending the outcome of the Company’s administrative challenges to the two PI patents asserted against Fairchild. ON Semiconductor Corporation and Semiconductor Components Industries, LLC v. Power Integrations, Inc. (August 11, 2016, Arizona, 2:16-cv-02720-SPL): The Company and Semiconductor Components Industries, LLC, a wholly owned subsidiary of the Company (collectively “ON Semi”), filed a lawsuit against PI in the U.S. District Court for the District of Arizona. In the lawsuit, ON Semi is asserting claims of patent infringement on six of its patents related to aspects of PI’s power conversion products. In the complaint, ON Semi is seeking a permanent injunction, unspecified damages, a trebling of damages, and an accounting of costs and fees. The lawsuit also seeks a claim for a declaratory judgment for ON Semi of non-infringement of three of PI’s patents. All three of the PI patents at issue in the declaratory judgment claims are subject to ON Semi’s administrative challenges to those patents currently pending at the USPTO. The lawsuit is in its earliest stages. Power Integrations v. ON Semiconductor Corporation, and Semiconductor Components Industries, LLC (November 1, 2016, Northern District of California, 3:16-cv-06371-BLF): This lawsuit was initiated by PI in 2016 in the U.S. District Court for the Northern District of California against ON Semi, alleging infringement of six PI patents. Of the six PI patents asserted in this lawsuit, two overlap with ON Semi’s declaratory judgment claims in the August 2016 lawsuit in Arizona and are subject to ON Semi’s administrative challenges to those patents currently pending at the USPTO. In the complaint, PI alleges infringement and seeks a permanent injunction, unspecified damages, a trebling of damages, and an accounting of costs and fees. The lawsuit is in its earliest stages. ON Semiconductor Corporation and Semiconductor Components Industries, LLC v. Power Integrations, Inc. (December 27, 2016, Eastern District of Texas, 2:16-cv-01451-JRG-RSP): ON Semi filed a lawsuit against PI in the U.S. District Court for the Eastern District of Texas, Marshall Division. In the lawsuit, ON Semi is asserting claims of patent infringement on six of its patents directed to aspects of PI’s InnoSwitch family of products. In the complaint, ON Semi is seeking a permanent injunction, unspecified damages, a trebling of damages, and an accounting of costs and fees. The lawsuit is in its earliest stages. Administrative Challenges to PI’s Patents Between March and August 2016, SCI LLC petitioned the USPTO to institute 12 inter partes reviews, each requesting cancellation of certain claims of six patents owned by PI that have been asserted against the Company, SCI LLC and Fairchild. The USPTO has instituted an inter partes trial, has indicated that SCI LLC is likely to prevail in showing that the challenged claims are unpatentable in seven out of the 10 petitions it has reviewed so far, and has indicated that SCI LLC is likely to prevail in showing that most of the challenged claims are unpatentable in another two petitions that the USPTO has reviewed thus far. The USPTO will make institution decisions on the remaining two petitions in the coming weeks. SCI LLC expects that each inter partes review proceeding will terminate in a Final Written Decision on the patentability of the challenged claims for which review has or will be instituted within one year from institution. Litigation with Acbel Polytech, Inc. On November 27, 2013, Fairchild and Fairchild Semiconductor Corporation were named as defendants in a complaint filed by Acbel Polytech, Inc. in the U.S. District Court for the District of Massachusetts. The lawsuit alleges a number of causes of action, including breach of warranty, fraud, negligence and strict liability, and has been docketed as Acbel Polytech, Inc. v. Fairchild Semiconductor International, Inc. et al , Case # 1:13-CV-13046-DJC. Acbel seeks damages in an amount not less than $30 million , punitive damages, costs and attorneys’ fees. The Company is vigorously defending the lawsuit and believes that it has strong defenses. Litigation Related to the Acquisition of Fairchild On December 14, 2015, the Company was named as a defendant in a shareholder class action lawsuit filed in state court in Delaware against the Company, Merger Sub, Fairchild and certain directors of Fairchild with respect to the Fairchild Agreement entered into between our Merger Sub and Fairchild in November 2015, by which the Company commenced a tender offer to acquire all of the outstanding shares of Fairchild. The lawsuit alleged breach of duty by the individual defendants and aiding and abetting by the Company and the Merger Sub and was docketed in the Court of Chancery of the State of Delaware as Woo v. Fairchild Semiconductor International, Inc. et al, Case # 11798VCL. In March 2016, the plaintiff amended the complaint to allege that Fairchild’s failure to accept the proposal from a third party constituted a breach of fiduciary duty and that certain disclosures filed on Form 14D-9 were misleading or inaccurate. As relief, the amended complaint sought, among other things, an injunction against the t |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13: Fair Value Measurements Fair Value of Financial Instruments The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and December 31, 2015 (in millions): Fair Value Measurements as of December 31, 2016 Description Balance as of December 31, 2016 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 67.2 $ 67.2 — — Money market funds $ 30.3 $ 30.3 — — Liabilities: Contingent consideration $ 4.5 — — $ 4.5 During the year ended December 31, 2016 , the contingent consideration for the AXSEM acquisition was reduced from $5.0 million to $4.5 million due to the revision of the Company’s expectations of the Earn-out achievement. Fair Value Measurements as of December 31, 2015 Description Balance as of December 31, 2015 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 9.5 $ 9.5 — — Money market funds $ 33.2 $ 33.2 — — Liabilities: Designated cash flow hedges $ 0.2 — $ 0.2 — Foreign currency exchange contracts $ 0.1 — $ 0.1 — Contingent consideration $ 5.0 — — $ 5.0 Other The carrying amounts of other current assets and liabilities, such as accounts receivable and accounts payable, approximate fair value based on the short-term nature of these instruments. Fair Value of Long-Term Debt, Including Current Portion The carrying amounts and fair values of the Company’s long-term borrowings (excluding capital lease obligations, real estate mortgages and equipment financing) at December 31, 2016 and December 31, 2015 are as follows (in millions): December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion Convertible Notes (1) $ 953.6 $ 1,160.9 $ 925.0 $ 1,041.9 Long-term debt (1) $ 2,616.3 $ 2,731.5 $ 386.9 $ 386.6 _______________________ (1) Carrying amount shown is net of debt discounts and debt issuance costs. See Note 8: ''Long-Term Debt'' for additional information. The fair value of the Company's Convertible Notes was estimated based on market prices on active markets (Level 1). The fair value of other long-term debt was estimated based on discounting the remaining principal and interest payments using current market rates for similar debt (Level 2) at December 31, 2016 and December 31, 2015 . Fair Values Measured on a Non-Recurring Basis Our non-financial assets, such as property, plant and equipment, goodwill and intangible assets are recorded at fair value upon acquisition and are remeasured at fair value only if an impairment charge is recognized. The Company uses unobservable inputs to the valuation methodologies that are significant to the fair value measurements, and the valuations require management's judgment due to the absence of quoted market prices. We determine the fair value of our held and used assets, goodwill and intangible assets using an income, cost or market approach as determined reasonable. See Note 5: ''Goodwill and Intangible Assets'' for a discussion of certain asset impairments. As of December 31, 2016 and December 31, 2015 , there were no non-financial assets included in the Company's Consolidated Balance Sheet that were remeasured at fair value on a nonrecurring basis. The following table shows the adjustments to fair value of certain of the Company's non-financial assets that had an impact on the Company's results of operations during the years ended December 31, 2016 , December 31, 2015 and December 31, 2014 (in millions): Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Nonrecurring fair value measurements Impairment of property, plant and equipment held for use or disposal (Level 3) $ 0.5 $ 0.2 $ 6.0 Goodwill impairment (Level 3) — — 8.7 IPRD (Level 3) 2.2 3.8 0.9 $ 2.7 $ 4.0 $ 15.6 See Note 5: ''Goodwill and Intangible Assets'' for additional information with respect to impairment charges. Cost Method Investments Investments in equity securities that do not qualify for fair value accounting are accounted for under the cost method. Accordingly, the Company accounts for investments in companies that it does not control under the cost method, as applicable. If a decline in the fair value of a cost method investment is determined to be other than temporary, an impairment charge is recorded and the fair value becomes the new cost basis of the investment. The Company evaluates all of its cost method investments for impairment; however, it is not required to determine the fair value of its investment unless impairment indicators are present. As of each of December 31, 2016 and 2015 , the Company's cost method investments had a carrying value of $12.3 million . |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Note 14: Financial Instruments Foreign Currencies As a multinational business, the Company's transactions are denominated in a variety of currencies. When appropriate, the Company uses forward foreign currency contracts to reduce its overall exposure to the effects of currency fluctuations on its results of operations and cash flows. The Company's policy prohibits trading in currencies for which there are no underlying exposures, or entering into trades for any currency to intentionally increase the underlying exposure. The Company primarily hedges existing assets and liabilities associated with transactions currently on its balance sheet, which are undesignated hedges for accounting purposes. At December 31, 2016 and 2015 , the Company had net outstanding foreign exchange contracts with net notional amounts of $95.9 million and $89.8 million , respectively. Such contracts were obtained through financial institutions and were scheduled to mature within one to three months from the time of purchase. Management believes that these financial instruments should not subject the Company to increased risks from foreign exchange movements because gains and losses on these contracts should offset losses and gains on the underlying assets, liabilities and transactions to which they are related. The following schedule summarizes the Company's net foreign exchange positions in U.S. dollars as of December 31, 2016 and 2015 (in millions): December 31, 2016 Buy (Sell) 2016 Notional Amount 2015 Buy (Sell) 2015 Notional Amount Euro $ (25.4 ) $ 25.4 $ (17.5 ) $ 17.5 Japanese Yen (33.7 ) 33.7 (30.0 ) 30.0 Malaysian Ringgit — — 7.1 7.1 Philippine Peso 15.8 15.8 13.7 13.7 Other currencies - Buy (6.1 ) 6.1 17.1 17.1 Other currencies - Sell 14.9 14.9 (4.4 ) 4.4 $ (34.5 ) $ 95.9 $ (14.0 ) $ 89.8 The Company is exposed to credit-related losses if counterparties to its foreign exchange contracts fail to perform their obligations. As of December 31, 2016 , the counterparties to the Company's foreign exchange contracts, as well as the cash flow hedges described below, are held at financial institutions which the Company believes to be highly rated and no credit-related losses are anticipated. Amounts receivable or payable under the contracts are included in other current assets or accrued expenses in the accompanying Consolidated Balance Sheet. For the years ended December 31, 2016 , 2015 and 2014 , realized and unrealized foreign currency transactions totaled a $0.7 million gain, a $1.5 million loss and a $3.1 million gain, respectively, and are included in other income and expenses in the Company's consolidated statements of operations and comprehensive income. Cash Flow Hedges The Company is exposed to global market risks associated with fluctuations in interest rates and foreign currency exchange rates. The Company addresses these risks through controlled management that includes the use of derivative financial instruments to economically hedge or reduce these exposures. The Company does not enter into derivative financial instruments for trading or speculative purposes. All derivatives are recognized on the balance sheet at their fair value and classified based on the instrument’s maturity date. The Company did not have outstanding derivatives designated as cash flow hedges as of December 31, 2016. For the year ended December 31, 2016 , the Company recorded a loss of $0.2 million associated with cash flow hedges recognized as a component of cost of revenues. See Note 13: "Fair Value Measurements" for information with respect to the balances of cash flow hedges. Other At December 31, 2016 , the Company had no outstanding commodity derivatives, currency swaps or options relating to either its debt instruments or investments. The Company does not hedge the value of its equity investments in its subsidiaries or affiliated companies. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15: Income Taxes The Company's geographic sources of income before income taxes and non-controlling interest are as follows (in millions): Year ended December 31, 2016 2015 2014 United States $ (287.0 ) $ (102.7 ) $ (56.2 ) Foreign 467.6 322.5 248.1 $ 180.6 $ 219.8 $ 191.9 The Company's provision for income taxes is as follows (in millions): Year ended December 31, 2016 2015 2014 Current: Federal $ (0.1 ) $ — $ (1.5 ) State and local 0.1 2.0 — Foreign 34.4 21.3 20.1 34.4 23.3 18.6 Deferred: Federal 60.8 0.4 (17.1 ) State and local — (1.4 ) (2.9 ) Foreign (99.1 ) (11.5 ) 1.2 (38.3 ) (12.5 ) (18.8 ) Total provision (benefit) $ (3.9 ) $ 10.8 $ (0.2 ) A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is as follows: Year ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State and local taxes, net of federal tax benefit (3.6 ) (1.0 ) (0.5 ) Impact of foreign operations (8.1 ) (39.8 ) (33.9 ) Reversal of prior years’ indefinite reinvestment assertion 172.1 — — Dividend income from foreign subsidiaries 0.2 85.5 13 Change in valuation allowance and related effects (190.7 ) (75.3 ) (17.8 ) Nondeductible acquisition costs 1.9 0.1 0.9 Nondeductible share-based compensation costs 0.7 0.9 2.1 Deferred tax liability for assets with indefinite useful lives — (0.5 ) 1.7 US federal R&D credit (10.1 ) — — Return to accrual (0.5 ) (0.9 ) (0.5 ) Other 0.9 0.9 (0.1 ) Total (2.2 )% 4.9 % (0.1 )% The tax effects of temporary differences in the recognition of income and expense for tax and financial reporting purposes that give rise to significant portions of the deferred tax assets, net of deferred tax liabilities, as of December 31, 2016 and December 31, 2015 , are as follows (in millions): Year ended December 31, 2016 2015 Net operating loss and tax credit carryforwards $ 978.1 $ 692.0 Tax-deductible goodwill and amortizable intangibles (57.1 ) (35.9 ) Reserves and accruals 51.7 25.2 Property, plant and equipment (60.9 ) 21.3 Inventories 42.1 26.3 Undistributed earnings of foreign subsidiaries (639.1 ) — Share-based compensation 14.3 14.0 Pension 21.5 17.9 Debt financing costs (40.8 ) — Other 14.3 2.1 Deferred tax assets and liabilities before valuation allowance 324.1 762.9 Valuation allowance (474.1 ) (735.7 ) Net deferred tax asset (liability) $ (150.0 ) $ 27.2 The Company continues to maintain a valuation allowance on a portion of its foreign tax credits and net operating losses ("NOLs"), a substantial portion, or $287.9 million , of which relate to Japan NOLs that expire in varying amounts from 2017 to 2024. In addition, the Company also maintains a valuation allowance in the U.S. on a portion of its foreign tax credit carryforwards and a full valuation allowance on its capital loss carryforwards and U.S. state deferred tax assets. As of December 31, 2016 , the Company’s deferred tax assets do not include $194.5 million of excess tax deductions from employee equity exercises that are part of NOL carryforwards, which, if realized, will be accounted for as an addition to equity. See Note 3: "Recent Accounting Pronouncements" for the effective date of ASU 2016-09 impacting the accounting for share-based compensation arrangements. The Company uses the with or without method when determining when excess benefits have been realized. The consummation of the Fairchild acquisition during the quarter ended September 30, 2016, caused us to reassess our prior years’ indefinite reinvestment assertion because of the U.S. debt incurred to fund the acquisition. See Note 8 “Long-Term Debt” for additional information. This resulted in a change in judgment regarding our future cash flows by jurisdiction and our prior years’ indefinite reinvestment assertion. The change in assertion, which resulted in recording a deferred tax liability for future U.S. taxes, had a direct impact on our judgment about the realizability of our U.S. federal deferred tax assets which resulted in a release of valuation allowance. The change in our prior years’ indefinite reinvestment assertion resulted in an increase to income tax expense of $310.8 million , which was partially offset by a benefit of $267.9 million relating to the release of valuation allowance. The reversal of the prior years' indefinite reinvestment assertion and release of the U.S. federal valuation allowance did not have an effect on our cash taxes. We have not made an indefinite reinvestment assertion related to current year foreign earnings. In addition to the release of valuation allowance mentioned above, in past periods, we recorded a significant valuation allowance against our Japan consolidated groups deferred tax assets. In order for the Company to release this valuation allowance a substantial amount of positive evidence regarding current and future earnings was required to outweigh the significant negative evidence associated with historical losses. We have reassessed our need for a valuation allowance for our Japan consolidated group as of December 31, 2016 . Due to our recent trend of positive operating results, which resulted in the Japan group being in a cumulative 12-quarter income position as of the period ended December 31, 2016, as well as the recent realignment of the former System Solutions Group segment, we realized a $89.4 million net tax benefit related to the release of a portion of our valuation allowance, to reflect the amount of our deferred tax assets which we expect to realize in future years. As of December 31, 2016 and 2015, the Company had approximately $1,203.6 million and $638.8 million , respectively, of federal NOL carryforwards, before reduction for uncertain tax positions, which are subject to annual limitations prescribed in Section 382 of the Internal Revenue Code. If not utilized, the NOLs will expire in varying amounts from 2021 to 2036. As of December 31, 2016 and 2015, the Company had approximately $211.9 million and $132.9 million , respectively, of federal credit carryforwards, before consideration of valuation allowance or reduction for uncertain tax positions, which are subject to annual limitations prescribed in Section 383 of the Internal Revenue Code. If not utilized, the credits will expire in varying amounts from 2017 to 2036. Additionally, the Company acquired through the Fairchild acquisition a $29.0 million federal capital loss carryforward of which $26.2 million expired as of December 31, 2016, the remaining amount expires in 2018. As of December 31, 2016 and 2015, the Company had approximately $1,191.2 million and $662.7 million , respectively, of state NOL carryforwards, before consideration of valuation allowance or reduction for uncertain tax positions. If not utilized, the NOLs will expire in varying amounts from 2017 to 2036. As of December 31, 2016 and 2015, the Company had $129.0 million and $51.3 million , respectively, of state credit carryforwards before consideration of valuation allowance or reduction for uncertain tax positions. If not utilized, a portion of the credits will begin to expire in varying amounts starting in 2017. As of December 31, 2016 and 2015, the Company had approximately $1,078.8 million and $1,000.5 million , respectively, of foreign NOL carryforwards, before consideration of valuation allowance. If not utilized, a portion of the NOLs will begin to expire in varying starting in 2017. As of December 31, 2016 and 2015, the Company had $50.5 million and $34.3 million , respectively, of foreign credit carryforwards before consideration of valuation allowance. The majority of these credits have an indefinite life and do not expire. In general, the increases in the Company’s NOL and credit carryforward amounts are primarily due to acquired attributes as a result of the Fairchild acquisition. This income tax benefit for the year ended December 31, 2016 consisted primarily of the reversal of $359.8 million of our previously established valuation allowance against part of our U.S. federal and foreign deferred tax assets and the release of $1.9 million for reserves and interest for uncertain tax positions in foreign taxing jurisdictions which were effectively settled or for which the statute lapsed during the year ended December 31, 2016. This is partially offset by $310.8 million related to the reversal of the prior years’ indefinite reinvestment assertion and $43.5 million for income and withholding taxes of certain of our foreign and domestic operations and $3.5 million of new reserves and interest on existing reserves for uncertain tax positions in foreign taxing jurisdictions. The income tax provision for the year ended December 31, 2015 consisted of the reversal of $12.1 million of our previously established valuation allowance against our U.S. deferred tax assets, the release of $4.3 million for reserves and interest for uncertain tax positions in foreign taxing jurisdictions that were effectively settled or for which the statute lapsed during the year ended December 31, 2015 and a change in tax rate that favorably impacted deferred balances by $1.6 million . This is partially offset by $24.4 million for income and withholding taxes of certain of the Company's foreign and domestic operations and $4.4 million of new reserves and interest on existing reserves for uncertain tax positions in foreign taxing jurisdictions. The income tax benefit for the year ended December 31, 2014 consisted of the reversal of $23.3 million of our previously established valuation allowance against our U.S. deferred tax assets as a result of a net deferred tax liability recorded as part of the Truesense acquisition and the reversal of $4.6 million for reserves and interest for uncertain tax positions in foreign taxing jurisdictions that were effectively settled or for which the statute lapsed during the year ended December 31, 2014. This is partially offset by $19.8 million for income and withholding taxes of certain of the Company's foreign and domestic operations, $4.6 million of new reserves and interest on existing reserves for uncertain tax positions in foreign taxing jurisdictions, and $3.3 million of deferred federal income taxes associated with tax deductible goodwill. Tax years prior to 2012 are generally not subject to examination by the Internal Revenue Services (“IRS”) except for items involving tax attributes that have been carried forward to tax years whose statute of limitations remains open. The Company is not currently under IRS examination. For state returns, the Company is generally not subject to income tax examinations for years prior to 2011. The Company is also subject to routine examinations by various foreign tax jurisdictions in which it operates. With respect to major jurisdictions outside the United States, our subsidiaries are no longer subject to income tax audits for years prior to 2006. The Company is currently under audit in the following significant jurisdictions: Malaysia, China, Philippines, and Japan. The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases, and other information. The Company is currently under examination by various taxing authorities. Although the outcome of any tax audit is uncertain, the Company believes that it has adequately provided in its consolidated financial statements for any additional taxes that the Company may be required to pay as a result of such examinations. If the payment ultimately proves not to be necessary, the reversal of these tax liabilities would result in tax benefits being recognized in the period the Company determines such liabilities are no longer necessary. However, if an ultimate tax assessment exceeds the Company's estimate of tax liabilities, additional tax expense will be recorded. The impact of such adjustments could have a material impact on the Company's results of operations in future periods. The activity for unrecognized gross tax benefits for 2016 , 2015 , and 2014 is as follows (in millions): 2016 2015 2014 Balance at beginning of year $ 33.5 $ 31.2 $ 20.9 Acquired balances 86.9 — — Additions based on tax positions related to the current year 4.6 9.2 9.0 Additions for tax positions of prior years 13.7 3.4 5.3 Reductions for tax positions of prior years (0.4 ) (6.9 ) (0.6 ) Lapse of statute (1.6 ) (3.3 ) (3.4 ) Settlements — (0.1 ) — Balance at end of year $ 136.7 $ 33.5 $ 31.2 For the period ended December 31, 2016, the Company performed a U.S. R&D tax credit study which covered the years from 2012 to 2015. The results of the study were recorded during the period ended December 31, 2016. As a result the uncertain tax position related to the outcome of the prior year study was also recorded. Included in the December 31, 2016 balance of $136.7 million is $125.5 million related to unrecognized tax positions that, if recognized, would affect the annual effective tax rate. Although we cannot predict the timing of resolution with taxing authorities, if any, we believe it is reasonably possible that our unrecognized tax positions will be reduced by $3.8 million in the next 12 months due to settlement with tax authorities or expiration of the applicable statute of limitations. The Company recognizes interest and penalties accrued in relation to unrecognized tax benefits in tax expense. The Company recognized approximately $0.5 million of tax expenses for interest and penalties during the year ended December 31, 2016 , and recognized approximately $0.9 million and $0.5 million of tax expenses for interest and penalties during the years ended December 31, 2015 and 2014 , respectively. The Company had approximately $4.4 million , $3.9 million , and $3.2 million of accrued interest and penalties at December 31, 2016 , 2015 , and 2014 , respectively. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Note 16: Changes in Accumulated Other Comprehensive Loss Amounts comprising the Company's accumulated other comprehensive loss and reclassifications for the years ended December 31, 2016 and December 31, 2015 are as follows (in millions): Foreign Currency Translation Adjustments Effects of Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Total Balance as of December 31, 2014 $ (42.5 ) $ (3.5 ) $ 4.5 $ (41.5 ) Other comprehensive income (loss) prior to reclassifications (1) 0.3 11.1 (0.4 ) 11.0 Amounts reclassified from accumulated other comprehensive loss — (7.7 ) (4.1 ) (11.8 ) Net current period other comprehensive loss 0.3 3.4 (4.5 ) (0.8 ) Balance as of December 31, 2015 $ (42.2 ) $ (0.1 ) $ — $ (42.3 ) Other comprehensive income (loss) prior to reclassifications (1) (8.0 ) 0.3 — (7.7 ) Amounts reclassified from accumulated other comprehensive loss — (0.2 ) — (0.2 ) Net current period other comprehensive loss (8.0 ) 0.1 — (7.9 ) Balance as of December 31, 2016 $ (50.2 ) $ — $ — $ (50.2 ) _______________________ (1) Foreign currency translation adjustments are net of tax of $0.2 million and $0.0 million for the years ended December 31, 2016 and December 31, 2015 , respectively. Amounts which were reclassified from accumulated other comprehensive loss to the Company's Consolidated Statements of Operations and Comprehensive Income during the years ended December 31, 2016 and December 31, 2015 , were as follows (net of tax of $0 in 2016 and 2015 , respectively, in millions): Amounts Reclassified from Accumulated Other Comprehensive Loss December 31, 2016 December 31, 2015 Affected Line Item Where Net Income is Presented Effects of cash flow hedges $ 0.2 $ (7.7 ) Cost of revenues Gains and Losses on Available-for-sale securities — (4.1 ) Other income and expense Total reclassifications $ 0.2 $ (11.8 ) |
Supplemental Disclosures
Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures | Note 17: Supplemental Disclosures Supplemental Disclosure of Cash Flow Information The Company's non-cash financing activities and cash payments for interest and income taxes during the years ended December 31, 2016 , 2015 and 2014 are as follows (in millions): Year ended December 31, 2016 2015 2014 Non-cash financing activities: Debt issuance costs paid directly from escrow accounts $ 46.0 Capital expenditures in accounts payable and other liabilities $ 105.9 $ 102.2 $ 108.5 Equipment acquired or refinanced through capital leases — 12.5 14.5 Cash (received) paid for: Interest income $ (4.5 ) $ (1.1 ) $ (1.5 ) Interest expense 106.7 28.4 25.7 Income taxes 27.3 20.0 18.1 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | Note 18: Segment Information During the third quarter of 2016, the Company realigned its segments into three operating segments to optimize efficiencies resulting from the acquisition of Fairchild. These operating segments also represent its three reporting segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group. The results of the System Solutions Group, which was previously the Company’s fourth operating segment, and which did not have goodwill, are now part of the three operating segments and previously-reported information has been presented based on the new structure to reflect the current organizational structure. The Company’s Power and Analog Solutions Groups include the business acquired in the Fairchild Transaction. See Note 4: ''Acquisitions and Divestitures'' for additional information with respect to the Company's recent acquisitions. Each of the Company's major product lines has been examined and each product line has been assigned to a reportable segment, as illustrated in the table below, based on the Company's operating strategy. Because many products are sold into different end-markets, the total revenue reported for a segment is not indicative of actual sales in the end-market associated with that segment, but rather is the sum of the revenue from the product lines assigned to that segment. These segments represent the Company's view of the business and as such are used to evaluate progress of major initiatives and allocation of resources. Power Solutions Group Analog Solutions Group Image Sensor Group Bipolar Power (8) Automotive ASSPs (1) CCD Image Sensors (7) Thyristor (8) Analog Automotive (2) CMOS Image Sensors (7) Small Signal (8) Automotive Power Switching (3) Proximity Sensors (13) Zener (8) Automotive Mixed-Signal Solutions (1) Linear Light Sensors (7) Protection (3) Medical ASICs & ASSPs (1) Image Stabilizer ICs (12) Rectifier (8) Mixed-Signal ASICs (1) Auto Focus ICs (12) Filters (3) Industrial ASSPs (1) MOSFETs (3) High Frequency / Timing (4) Signal & Interface (2) IPDs (5) Standard Logic (6) Foundry and Manufacturing Services (5) LDO's & VREGs (2) Hearing Components (1) EE Memory and Programmable Analog (9) DC-DC Conversion (2) IGBTs (3) Analog Switches (6) Power MOSFETs (10) AC-DC Conversion (2) Power and Signal Discretes (10) Low Voltage Power Management (2) Intelligent Power Modules (11) Power Switching (2) Smart Passive Sensors (13) RF Antenna Tuning Solutions (1) PIM (14) Motor Driver ICs (12) Display Drivers (12) ASICs (12) Microcontrollers (12) Flash Memory (12) Touch Sensor (12) Power Supply IC (12) Audio DSP (12) Audio Tuners (12) _______________________ (1) ASIC products (8) Discrete products (2) Analog products (9) Memory products (3) TMOS products (10) HD products (4) ECL products (11) IPM products (5) Foundry products / services (12) LSI products (6) Standard logic products (13) Other sensor products (7) Image sensor / ASIC products (14) PIM Products The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on segment revenues and gross profit. The Company's wafer manufacturing facilities fabricate ICs for all business units, as necessary, and their operating costs are reflected in the segments' cost of revenues on the basis of product costs. Because operating segments are generally defined by the products they design and sell, they do not make sales to each other. The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. In addition to the operating and reporting segments mentioned above, the Company also operates global operations, sales and marketing, information systems, finance and administration groups that are led by vice presidents who report to the Chief Executive Officer. A portion of the expenses of these groups are allocated to the segments based on specific and general criteria and are included in the segment results reported below. The Company does not allocate income taxes or interest expense to its operating segments as the operating segments are principally evaluated on gross profit. Additionally, restructuring, asset impairments and other, net and certain other manufacturing and operating expenses, which include corporate research and development costs, unallocated inventory reserves and miscellaneous nonrecurring expenses, are not allocated to any segment. Revenues and gross profit for the Company’s reportable segments for the years ended December 31, 2016 , December 31, 2015 and December 31, 2014 , respectively, are as follows (in millions): Power Solutions Group Analog Solutions Group Image Sensor Group Total For year ended December 31, 2016: Revenues from external customers $ 1,708.6 $ 1,481.5 $ 716.8 $ 3,906.9 Segment gross profit 566.3 589.0 236.5 1,391.8 For year ended December 31, 2015: Revenues from external customers $ 1,409.9 $ 1,338.6 $ 747.3 $ 3,495.8 Segment gross profit 428.7 537.9 242.4 1,209.0 For year ended December 31, 2014: Revenues from external customers $ 1,423.5 $ 1,415.8 $ 322.5 $ 3,161.8 Segment gross profit 446.8 574.5 97.0 1,118.3 Gross profit shown above and below is exclusive of the amortization of acquisition related intangible assets. Depreciation expense is included in segment gross profit. Reconciliations of segment gross profit to consolidated gross profit are as follows (in millions): Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Gross profit for reportable segments $ 1,391.8 $ 1,209.0 $ 1,118.3 Less: unallocated manufacturing costs (94.9 ) (15.8 ) (33.4 ) Consolidated gross profit $ 1,296.9 $ 1,193.2 $ 1,084.9 The Company's consolidated assets are not specifically ascribed to its individual reporting segments. Rather, assets used in operations are generally shared across the Company's reporting segments. The Company operates in various geographic locations. Sales to unaffiliated customers have little correlation with the location of manufacturers. It is, therefore, not meaningful to present operating profit by geographical location. Revenues by geographic location, including local sales made by operations within each area, based on sales billed from the respective country, are summarized as follows (in millions): Year Ended December 31, 2016 December 31, 2015 December 31, 2014 United States $ 588.4 $ 544.3 $ 497.0 United Kingdom 541.1 503.2 497.9 Hong Kong 1,086.8 874.4 975.3 Japan 334.5 281.7 293.1 Singapore 1,110.4 1,120.7 786.5 Other 245.7 171.5 112.0 $ 3,906.9 $ 3,495.8 $ 3,161.8 Property, plant and equipment, net by geographic location, are summarized as follows (in millions): December 31, December 31, United States $ 548.1 $ 326.2 Korea 385.9 0.2 Malaysia 224.0 226.5 Philippines 381.7 259.1 China 217.7 111.0 Other 401.7 351.1 $ 2,159.1 $ 1,274.1 For the years ended December 31, 2016 , December 31, 2015 , and December 31, 2014 , there were no individual customers, including distributors, which accounted for more than 10% of the Company’s total consolidated revenues. |
Supplementary Financial Informa
Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited) | Note 19: Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited) Consolidated unaudited quarterly financial information for 2016 and 2015 is as follows (in millions, except per share data): Quarter ended 2016 April 1 July 1 September 30 December 31 Revenues $ 817.2 $ 877.8 $ 950.9 $ 1,261.0 Gross Profit (exclusive of the amortization of acquisition related intangible assets) 275.5 307.9 329.0 384.5 Net income attributable to ON Semiconductor Corporation 36.0 25.1 10.1 110.9 Diluted net income per common share attributable to ON Semiconductor Corporation 0.09 0.06 0.02 0.26 Quarter ended 2015 April 3 July 3 September 26 December 31 Revenues $ 870.8 $ 880.5 $ 904.2 $ 840.3 Gross Profit (exclusive of the amortization of acquisition related intangible assets) 300.4 304.4 308.5 279.9 Net income (loss) attributable to ON Semiconductor Corporation 55.1 50.7 46.3 54.1 Diluted net income per common share attributable to ON Semiconductor Corporation 0.13 0.12 0.11 0.13 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20: Subsequent Events Interest Rate Hedge To partially offset the variability of future interest payments on the outstanding Term Loan “B” Facility arising from changes in LIBOR rates, on January 11, 2017, the Company entered into interest rate swap agreements with three financial institutions for notional amounts totaling $500.0 million , $750.0 million and $1.0 billion expiring on December 29, 2017, December 31, 2018 and December 31, 2019, respectively, effectively hedging some of the future variable rate LIBOR interest expense to a fixed rate interest expense. The Company has performed an effectiveness assessment and concluded that there is no ineffectiveness at the inception of the hedge. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions/Write-offs Balance at End of Period Allowance for doubtful accounts Year ended December 31, 2014 $ 1.0 $ 0.5 $ 0.1 $ — $ 1.6 Year ended December 31, 2015 1.6 3.7 0.9 — 6.2 Year ended December 31, 2016 6.2 (2.0 ) (2.0 ) — 2.2 Allowance for deferred tax assets Year ended December 31, 2014 $ 1,301.3 $ (239.2 ) $ (84.6 ) (1) $ — $ 977.5 Year ended December 31, 2015 977.5 (242.5 ) 0.7 — 735.7 Year ended December 31, 2016 735.7 (356.0 ) 94.4 (2) — 474.1 _______________________ (1) Represents the effects of cumulative translation adjustments. This also includes $15.8 million of additional allowance for deferred tax assets arising from the Aptina acquisition in 2014. (2) Represents the effects of cumulative translation adjustments. This also includes $81.6 million of additional allowance for deferred tax assets arising from the Fairchild acquisition in 2016. |
Significant Accounting Polici29
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, including its wholly-owned and majority-owned subsidiaries. Investments in companies that represent less than 20% of the related ownership interests where the Company does not have the ability to exert significant influence are accounted for as cost method investments. All material intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Significant estimates have been used by management in conjunction with the following: (i) measurement of valuation allowances relating to trade receivables, inventories and deferred tax assets; (ii) estimates of future payouts for customer incentives and allowances, warranties, and restructuring activities; (iii) assumptions surrounding future pension obligations; (iv) fair values of share-based compensation and of financial instruments (including derivative financial instruments); (v) evaluations of uncertain tax positions; (vi) estimates and assumptions used in connection with business combinations; and (vii) future cash flows used to assess and test for impairment of goodwill and long-lived assets, if applicable. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity to the Company of three months or less to be cash equivalents. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks generally exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, as a result of the quality of the respective financial institutions, management believes these deposits bear minimal risk. |
Short-Term Investments | Short-Term Investments Short-term investments include held-to-maturity securities and available-for-sale securities. Held-to-maturity securities have an original maturity to the Company between three months and one year and are carried at amortized cost as it is the intent of the Company to hold these securities until maturity. Available-for-sale securities are stated at fair value and the net unrealized gains or losses on available-for-sale securities are recorded as a component of accumulated other comprehensive loss, net of income taxes. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In the normal course of business, the Company provides non-collateralized credit terms to its customers. Accordingly, the Company maintains an allowance for doubtful accounts for probable losses on uncollectible accounts receivable. The Company routinely analyzes accounts receivable and considers history, customer creditworthiness, facts and circumstances specific to outstanding balances, current economic trends, and payment term changes when evaluating adequacy of the allowance for doubtful accounts. |
Inventories | Inventories Inventories are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market. General market conditions, as well as the Company's design activities, can cause certain of its products to become obsolete. The Company writes down excess and obsolete inventories based upon a regular analysis of inventory on hand compared to historical and projected end-user demand. These write downs can influence results from operations. For example, when demand for a given part falls, all or a portion of the related inventory that is considered to be in excess of anticipated demand, is written down, impacting cost of revenues and gross profit. If demand recovers and the parts previously written down are sold, a higher than normal margin will generally be recognized. However, the majority of product inventory that has been previously written down is ultimately discarded. Although the Company does sell some products that have previously been written down, such sales have historically been consistently immaterial and the related impact on the Company's gross profit has also been immaterial. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and are depreciated over estimated useful lives of 30 - 50 years for buildings and 3 - 20 years for machinery and equipment using straight-line methods. Expenditures for maintenance and repairs are charged to operations in the period in which the expense is incurred. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. The Company evaluates the recoverability of the carrying amount of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. A potential impairment charge is evaluated when the undiscounted expected cash flows derived from an asset group are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset group exceeds its fair value and are recognized in operating results. Judgment is used when applying these impairment rules to determine the timing of the impairment test, the undiscounted cash flows used to assess impairments and the fair value of the asset group. |
Business Combination Purchase Price Allocation | Business Combination Purchase Price Allocation The allocation of the purchase price of business combinations is based on management estimates and assumptions, which utilize established valuation techniques appropriate for the high-technology industry. These techniques include the income approach, cost approach or market approach, depending upon which approach is the most appropriate based on the nature and reliability of available data. The income approach is predicated upon the value of the future cash flows that an asset is expected to generate over its economic life. The cost approach takes into account the cost to replace (or reproduce) the asset and the effects on the asset's value of physical, functional and/or economic obsolescence that has occurred with respect to the asset. The market approach is used to estimate value from an analysis of actual transactions or offerings for economically comparable assets available as of the valuation date. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the Company's acquisitions. The Company evaluates its goodwill for potential impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company's impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this qualitative assessment indicates it is more likely than not the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company follows a two-step quantitative goodwill impairment test to determine if goodwill is impaired. The first step of the goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. Determining the fair value of the Company's reporting units is subjective in nature and involves the use of significant estimates and assumptions, including projected net cash flows, discount and long-term growth rates. The Company determines the fair value of its reporting units based on an income approach, whereby the fair value of the reporting unit is derived from the present value of estimated future cash flows. The assumptions about estimated cash flows include factors such as future revenues, gross profits, operating expenses, and industry trends. The Company considers historical rates and current market conditions when determining the discount and long-term growth rates to use in its analysis. The Company considers other valuation methods, such as the cost approach or market approach, if it is determined that these methods provide a more representative approximation of fair value. Changes in these estimates based on evolving economic conditions or business strategies could result in material impairment charges in future periods. The Company bases its fair value estimates on assumptions it believes to be reasonable. Actual results may differ from those estimates. The Company has determined that its divisions, which are components of its operating segments, constitute reporting units for purposes of allocating and testing goodwill. The Company’s divisions are one level below the operating segments, constituting individual businesses, with the Company’s segment management conducting regular reviews of the operating results. The first step of the goodwill impairment test compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets associated with that unit, goodwill is not considered impaired and the Company is not required to perform further testing. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the goodwill impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If, during this second step, the Company determines that the carrying value of a reporting unit’s goodwill exceeds its implied value, the Company would record an impairment loss equal to the difference. |
Intangible Assets | Intangible Assets The Company's acquisitions have resulted in intangible assets consisting of values assigned to customer relationships; patents; developed technology; IPRD; and trademarks. These are stated at cost less accumulated amortization, are amortized over their estimated useful lives, and are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset group containing these assets may not be recoverable. A potential impairment charge is evaluated when the undiscounted expected cash flows derived from an asset group are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset group exceeds its fair value and are recognized in operating results. Judgment is used when applying these impairment rules to determine the timing of the impairment test, the undiscounted cash flows used to assess impairments and the fair value of an asset group. The dynamic economic environment in which the Company operates and the resulting assumptions used to estimate future cash flows impact the outcome of these impairment tests. |
Treasury Stock | Treasury Stock Treasury stock is recorded at cost, inclusive of fees, commissions and other expenses, when outstanding common shares are repurchased by the Company, including when outstanding shares are withheld to satisfy tax withholding obligations in connection with certain shares pursuant to restricted stock units under the Company's share-based compensation plans. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs for line-of-credit agreements, including the Company's senior revolving credit facility, are capitalized and amortized over the term of the underlying agreements using the effective interest method. Amortization of these debt issuance costs is included in interest expense while the unamortized balance is included in other assets. Debt issuance costs for the Company's convertible notes are recorded as a direct deduction from the carrying amount of the convertible notes, consistent with debt discounts, and are amortized over the term of the convertible notes using the effective interest method. Amortization of these debt issuance costs is included in interest expense. |
Revenue Recognition | Revenue Recognition The Company generates revenue from sales of its semiconductor products to OEMs, electronic manufacturing service providers and distributors. The Company also generates revenue, to a much lesser extent, from manufacturing and design services provided to customers. Revenue is recognized when persuasive evidence of an arrangement exists, title and risk of loss pass to the customer (generally upon shipment), the price is fixed or determinable and collectability is reasonably assured. Revenues are recorded net of provisions for related sales returns and allowances. For products sold to distributors who are entitled to returns and allowances (generally referred to as “ship and credit rights” within the semiconductor industry), the Company recognizes the related revenue and cost of revenues depending on if the sale originated through an ON Semiconductor or legacy Fairchild systems and processes. If the sale originated through an ON Semiconductor system and process, revenue is recognized when ON Semiconductor is informed by the distributor that it has resold the products to the end-user. As a result of the Company’s inability to reliably estimate up front the effects of the returns and allowances with these distributors for sales originating through an ON Semiconductor system and process, the Company defers the related revenue and gross margin on sales to these distributors until it is informed by the distributor that the products have been resold to the end-user, at which time the ultimate sales price is known. Legacy Fairchild’s systems and processes enable the Company to estimate up front the effects of returns and allowances provided to the distributors and thereby record the net revenue at the time of sale related to a legacy Fairchild system and process. Although payment terms vary, most distributor agreements require payment within 30 days. For products sold to non-distributors, sales returns and allowances are estimated based on historical experience. The Company’s OEM customers do not have the right to return products, other than pursuant to the provisions of the Company’s standard warranty. Sales to distributors, however, are typically made pursuant to agreements that provide return rights with respect to discontinued or slow-moving products. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenues are recognized, and are netted against revenues. The Company reviews warranty and related claims activities and records provisions, as necessary. Freight and handling costs are included in cost of revenues and are recognized as period expense when incurred. Taxes assessed by government authorities on revenue-producing transactions, including value-added and excise taxes, are presented on a net basis (excluded from revenues) in the statement of operations. Warranty Reserves and Discounts The Company generally warrants that products sold to its customers will, at the time of shipment, be free from defects in workmanship and materials and conform to specifications. The Company's standard warranty extends for a period that is the greater of (i) two years from the date of shipment or (ii) the period of time specified in the customer's standard warranty (provided that the customer's standard warranty is stated in writing and extended to purchasers at no additional charge). At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with its sales, recorded as a component of cost of revenues. In addition, the Company also offers cash discounts to certain customers for payments received within an agreed upon time, generally ten days after shipment. The Company records a reserve for cash discounts as a reduction to accounts receivable and a reduction to revenues, based on experience with each customer. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation Share-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee's requisite service period. The Company has outstanding awards with performance, time and service-based vesting provisions. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for those deferred tax assets for which management cannot conclude that it is more likely than not that such deferred tax assets will be realized. In determining the amount of the valuation allowance, estimated future taxable income, as well as feasible tax planning strategies for each taxing jurisdiction are considered. If the Company determines it is more likely than not that all or a portion of the remaining deferred tax assets will not be realized, the valuation allowance will be increased with a charge to income tax expense. Conversely, if the Company determines it is more likely than not to be able to utilize all or a portion of the deferred tax assets for which a valuation allowance has been provided, the related portion of the valuation allowance will be recorded as a reduction to income tax expense. The Company recognizes and measures benefits for uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that is it more likely than not that the tax positions will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions that are more likely than not to be sustained upon audit, the second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Significant judgment is required to evaluate uncertain tax positions. Evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of tax audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense in the period in which the change is made, which could have a material impact to the Company's effective tax rate. |
Foreign Currencies | Foreign Currencies Most of the Company's foreign subsidiaries conduct business primarily in U.S. dollars and, as a result, utilize the dollar as their functional currency. For the remeasurement of financial statements of these subsidiaries, assets and liabilities in foreign currencies that are receivable or payable in cash are remeasured at current exchange rates, while inventories and other non-monetary assets in foreign currencies are remeasured at historical rates. Gains and losses resulting from the remeasurement of such financial statements are included in the operating results, as are gains and losses incurred on foreign currency transactions. The majority of the Company's Japanese subsidiaries utilize Japanese Yen as their functional currency. The assets and liabilities of these subsidiaries are translated at current exchange rates, while revenues and expenses are translated at the average rates in effect for the period. The related translation gains and losses are included in other comprehensive income or loss within the Consolidated Statements of Operations and Comprehensive Income. |
Defined Benefit Pension Plans | Defined Benefit Pension Plans The Company maintains defined benefit pension plans, covering certain of its foreign employees. For financial reporting purposes, net periodic pension costs and pension obligations are determined based upon a number of actuarial assumptions, including discount rates for plan obligations, assumed rates of return on pension plan assets and assumed rates of compensation increases for employees participating in plans. These assumptions are based upon management's judgment and consultation with actuaries, considering all known trends and uncertainties. |
Contingencies | Contingencies The Company is involved in a variety of legal matters, intellectual property matters, environmental, financing and indemnification contingencies that arise in the normal course of business. Based on information available, management evaluates the relevant range and likelihood of potential outcomes and records the appropriate liability when the amount is deemed probable and reasonably estimable. |
Fair Value Measurement | Fair Value Measurement The Company measures certain of its financial and non-financial assets at fair value by using a fair value hierarchy that prioritizes certain inputs into individual fair value measurement approaches. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities; • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Companies may choose to measure certain financial instruments and certain other items at fair value. Unrealized gains and losses on items for which the fair value option has been elected must be reported in earnings. The Company has elected not to carry any of its debt instruments at fair value. |
Recent Accounting Pronouncements | Note 3: Recent Accounting Pronouncements ASU’s Adopted: ASU No. 2015-17 - “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) In November 2015, the FASB issued ASU 2015-17, which requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. ASU 2015-17 is effective in fiscal years beginning after December 15, 2016. Early adoption is permitted on either a prospective or retrospective basis. The Company elected early adoption as of the interim period beginning October 3, 2015, effective for the annual period ended December 31, 2015, and selected the prospective application. Prior periods have not been retrospectively adjusted. ASU 2015-05 - “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”) In April 2015, the FASB issued ASU 2015-05, which provides guidance regarding the accounting for fees paid by a customer in cloud computing arrangements. ASU 2015-05 amended ASC 350-40-25-16 by removing the language that stated licenses for internal-use software from third parties should be analogized to the subtopic 840-10 Leases. If a cloud computing arrangement includes the transfer of a software license, then the customer would account for the payment of fees as an acquisition of software. If there is no software license, the payment of fees would be accounted for as a service contract. This ASU is effective in fiscal years beginning after December 15, 2015. An entity can elect to adopt the amendments either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. The Company adopted ASU 2015-05 as of the quarter ended April 1, 2016 and selected the prospective application. There was no material impact to the financial statements. ASU No. 2015-03 - “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”) and ASU No. 2015-15 - “Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”) In April 2015, the FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new standard is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. In August 2015, the FASB issued ASU 2015-15, which clarified that ASU 2015-03 does not address debt issuance costs related to line-of-credit agreements and stated that the SEC staff would not object to the deferral and presentation of debt issuance costs as an asset, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement, consistent with existing guidance. The Company elected early adoption of ASU 2015-03 as of the year ended December 31, 2015, applicable to debt issuance costs related to its convertible notes, and retrospectively adjusted certain prior year amounts to reflect the effects of applying the new guidance. Pursuant to ASU 2015-15, debt issuance costs relating to the Company’s revolving credit facility have been deferred and are included in other assets on the Company’s Consolidated Balance Sheet. ASU No. 2014-15 - “Presentation of Financial Statements—Going Concern (Subtopic 205-40) (“ASU 2014-15”) In August 2014, the FASB issued ASU 2014-15, which requires management to evaluate, in connection with financial statement preparation for each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued, and to provide related disclosures. ASU 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The adoption of this standard did not have a material impact to the financial statements. ASUs Pending Adoption: ASU No. 2016-18 - “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2016-18”) In November 2016, the FASB issued ASU 2016-18, which requires entities to include in their cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The ASU does not define the terms “restricted cash” and “restricted cash equivalents.” The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-18 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-16 - “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”) In October 2016, the FASB issued ASU 2016-16, which eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-16 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-15 - “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”) In August 2016, the FASB issued ASU 2016-15, which changes how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-15 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-09 - “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) In March 2016, the FASB issued ASU 2016-09, which is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company has not elected early adoption as of the year ended December 31, 2016, however expects the adoption of the standard to have a material impact on its consolidated financial statements based on excess tax deductions from employee equity exercises that are part of net operating losses as of December 31, 2016. See Note 15: "Income Taxes" for further information. ASU No. 2016-02 - “Leases (Topic 842)” (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02, which amends the accounting treatment for leases. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-02 may have on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2016-01 - “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) In January 2016, the FASB issued ASU No. 2016-01, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-01 may have on its consolidated financial statements. ASU No. 2015-11 - “Inventory (Topic 330): Simplifying the Measurement of Inventory” (“ASU 2015-11”) In July 2015, the FASB issued ASU 2015-11, which requires that an entity should measure in-scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the impact of the adoption of ASU 2015-11 to be material on its consolidated financial statements and has not elected early adoption as of the year ended December 31, 2016. ASU No. 2014-09 - “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), ASU No. 2015-14 - “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), ASU No. 2016-08 - “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” (“ASU 2016-08”), ASU No. 2016-10 - “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”) ASU No. 2016-12 - “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”) and ASU No. 2016-20 - “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”) In May 2014, the FASB issued ASU 2014-09, which applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards, superseding the existing revenue recognition requirements in ASC Topic 605 “Revenue Recognition.” Pursuant to ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange, as applied through a multi-step process to achieve that core principle. Subsequently, the FASB approved a deferral included in ASU 2015-14 that permits public entities to apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein, and that would also permit public entities to elect to adopt the amendments as of the original effective date as applicable to reporting periods beginning after December 15, 2016. The new guidance allows for the amendment to be applied either retrospectively to each prior reporting period presented or retrospectively as a cumulative-effect adjustment as of the date of adoption. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, which improves certain aspects of ASC Topic 606 “Revenue from Contracts with Customers.” In December 2016, the FASB issued ASU 2016-20, which improves certain aspects of ASC Topic 606 “Revenue from Contracts with Customers.”The effective date and transition requirements for ASU 2016-08, ASU 2016-10 ASU 2016-12 and ASU 2016-20 are the same as the effective date and transition requirements of ASU 2014-09. As described in Note 2: ''Significant Accounting Policies'' the Company defers the revenue and cost of revenues on sales to certain distributors until it is informed by the distributor that the distributor has resold the products to the end customer. Upon adoption of ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, the Company believes one of the more significant impacts will be that it is no longer permitted to defer revenue until sale by the distributor to the end customer, but rather, will be required to estimate the effects of returns and allowances provided to distributors and record revenue at the time of sale to the distributor. In anticipation of the adoption of the new standards, the Company has been developing its internal systems, processes and controls for making the required estimates. While the Company previously intended to early adopt the standard on January 1, 2017, the Company is still evaluating other aspects of the standard (non ship & credit related) and decided it will adopt the standard on January 1, 2018. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Information | The following unaudited pro forma consolidated results of operations for the year ended December 31, 2014 have been prepared as if the acquisitions of Aptina and Truesense had occurred on January 1, 2013 and includes adjustments for depreciation expense, amortization of intangibles, and the effect of purchase accounting adjustments including the step-up of inventory (in millions, except per share data): December 31, 2014 Revenues $ 3,536.4 Gross profit $ 1,213.7 Net income attributable to ON Semiconductor Corporation $ 147.8 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 0.34 Diluted $ 0.33 |
Fairchild [Member] | |
Business Acquisition [Line Items] | |
Acquisitions Schedule of Purchase Price Allocation | The following table presents the allocation of the purchase price of Fairchild for the assets acquired and liabilities assumed based on their fair values (in millions): Initial Estimate Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 255.0 $ — $ 255.0 Receivables 227.3 — 227.3 Inventories 342.3 — 342.3 Other current assets 59.3 1.7 61.0 Property, plant and equipment 813.5 112.3 925.8 Goodwill 733.6 (77.5 ) 656.1 Intangible assets (excluding IPRD) 423.4 (9.8 ) 413.6 In-process research and development 102.4 31.8 134.2 Other non-current assets 17.7 (4.6 ) 13.1 Total assets acquired 2,974.5 53.9 3,028.4 Accounts payable 79.4 — 79.4 Other current liabilities 160.1 8.0 168.1 Deferred tax liabilities 167.6 45.9 213.5 Other non-current liabilities 35.2 — 35.2 Total liabilities assumed 442.3 53.9 496.2 Net assets acquired/purchase price $ 2,532.2 $ — $ 2,532.2 |
Schedule of Pro Forma Information | The following unaudited pro-forma consolidated results of operations for the years ended December 31 2016 and 2015 have been prepared as if the acquisition of Fairchild had occurred on January 1, 2015 and includes adjustments for depreciation expense, amortization of intangibles, interest expense from financing, and the effect of purchase accounting adjustments including the step-up of inventory, as well as $16.9 million in non-recurring acquisition advisory fees (in millions): Year Ended December 31, 2016 December 31, 2015 Revenue $ 4,912.8 $ 4,866.0 Net Income $ 196.6 $ 58.2 Net income attributable to ON Semiconductor Corporation $ 194.2 $ 55.4 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 0.47 $ 0.13 Diluted $ 0.46 $ 0.13 |
Aptina [Member] | |
Business Acquisition [Line Items] | |
Acquisitions Schedule of Purchase Price Allocation | The following table presents purchase price allocation for the 2014 acquisition of Aptina, including the effects of the measurement period adjustments, recorded in 2015 (in millions): Purchase Price Allocation Cash and cash equivalents $ 30.3 Receivables 53.2 Inventories 84.8 Other current assets 5.7 Property, plant and equipment 36.3 Goodwill 64.4 Intangible assets 207.8 In-process research and development 51.3 Other non-current assets 2.3 Total assets acquired 536.1 Accounts payable 66.6 Other current liabilities 49.7 Other non-current liabilities 14.4 Total liabilities assumed 130.7 Net assets acquired $405.4 |
Truesense Imaging, Inc. [Member] | |
Business Acquisition [Line Items] | |
Acquisitions Schedule of Purchase Price Allocation | The following table presents the allocation of the purchase price recorded for the 2014 acquisition of Truesense, including the effects of the measurement period adjustments, recorded in 2015 (in millions): Purchase Price Allocation Cash and cash equivalents $ 4.2 Receivables 8.8 Inventories 18.3 Other current assets 3.6 Property, plant and equipment 26.4 Goodwill 23.5 Intangible assets 35.5 In-process research and development 10.2 Total assets acquired 130.5 Accounts payable 3.8 Other current liabilities 6.0 Other non-current liabilities 25.0 Total liabilities assumed 34.8 Net assets acquired $95.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Operating Segment | The following table summarizes goodwill by relevant reportable segment as of December 31, 2016 and December 31, 2015 (in millions): Balance as of December 31, 2016 Balance as of December 31, 2015 Goodwill Accumulated Impairment Losses Carrying Value Goodwill Accumulated Impairment Losses Carrying Value Operating Segment Analog Solutions Group $ 836.7 $ (418.9 ) $ 417.8 $ 546.7 $ (418.9 ) $ 127.8 Image Sensor Group 96.8 — 96.8 95.4 — 95.4 Power Solutions Group 438.7 (28.6 ) 410.1 76.0 (28.6 ) 47.4 Total $ 1,372.2 $ (447.5 ) $ 924.7 $ 718.1 $ (447.5 ) $ 270.6 |
Schedule Of Change In Goodwill | The following table summarizes the change in goodwill from December 31, 2014 to December 31, 2016 (in millions): Net balance as of December 31, 2014 $ 263.8 Additions due to business combinations 6.8 Net balance as of December 31, 2015 270.6 Additions due to business combination 657.5 Divestiture of business (3.4 ) Net balance as of December 31, 2016 $ 924.7 |
Summary of Intangible Assets, Net | Intangible assets, net, were as follows as of December 31, 2016 and December 31, 2015 (in millions): December 31, 2016 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Intellectual property $ 13.9 $ (11.2 ) $ (0.4 ) $ 2.3 Customer relationships 549.0 (283.3 ) (19.5 ) 246.2 Patents 43.7 (25.4 ) (13.7 ) 4.6 Developed technology 566.9 (201.6 ) (2.6 ) 362.7 Trademarks 17.2 (11.6 ) (1.1 ) 4.5 Backlog 3.3 (2.4 ) — 0.9 Favorable Leases 1.5 (0.4 ) — 1.1 IPRD 145.8 — (6.0 ) 139.8 Total intangibles $ 1,341.3 $ (535.9 ) $ (43.3 ) $ 762.1 December 31, 2015 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Intellectual property $ 13.9 $ (10.6 ) $ (0.4 ) $ 2.9 Customer relationships 419.8 (239.6 ) (19.8 ) 160.4 Patents 43.7 (23.6 ) (13.7 ) 6.4 Developed technology 268.0 (152.2 ) (2.6 ) 113.2 Trademarks 16.3 (9.9 ) (1.1 ) 5.3 Backlog 0.3 (0.3 ) — — IPRD 41.4 — (3.8 ) 37.6 Total intangibles $ 803.4 $ (436.2 ) $ (41.4 ) $ 325.8 |
Summary of Amortization Expense | Amortization expense for intangible assets, with the exception of the $139.8 million of IPRD assets that will be amortized once the corresponding projects have been completed, is expected to be as follows over the next five years, and thereafter (in millions): Total 2017 $ 112.8 2018 94.5 2019 87.7 2020 72.4 2021 59.7 Thereafter 195.2 Total estimated amortization expense $ 622.3 |
Restructuring, Asset Impairme32
Restructuring, Asset Impairments and Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Reconciliation Of "Restructuring, Asset Impairments And Other, Net" Caption On The Consolidated Statement Of Operations | Summarized activity included in the “Restructuring, asset impairments and other, net” caption on the Company's Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2016 , 2015 and 2014 is as follows (in millions): Restructuring Asset Impairments Other (2) Total Year Ended December 31, 2016 Post-Fairchild acquisition restructuring costs $ 25.7 $ — $ — $ 25.7 Former System Solutions Group segment voluntary workforce reduction 5.3 — — 5.3 Manufacturing relocation 2.1 — — 2.1 General Workforce Reductions 0.3 — — 0.3 Other (1) (0.2 ) — — (0.2 ) Total $ 33.2 $ — $ — $ 33.2 Year Ended December 31, 2015 General Workforce Reductions $ 4.8 $ — $ — $ 4.8 European Marketing Organization Relocation 3.5 — — 3.5 Business Combination Severance 1.0 — — 1.0 KSS Facility Closure 0.3 — (3.4 ) (3.1 ) Other (1) 1.4 0.2 1.5 3.1 Total $ 11.0 $ 0.2 $ (1.9 ) $ 9.3 Year Ended December 31, 2014 Former System Solutions Group Voluntary Retirement Program $ 10.4 $ — $ (4.5 ) $ 5.9 Business Combination Severance 5.9 — — 5.9 KSS Facility Closure 10.1 — (2.1 ) 8.0 Other (1) 1.7 6.0 3.0 10.7 Total $ 28.1 $ 6.0 $ (3.6 ) $ 30.5 _______________________ (1) Includes charges related to certain other reductions in workforce, other facility closures, asset disposal activity and certain other activity which is not considered to be significant. (2) Activity primarily consists of curtailment gains, non-cash foreign currency translation gains and certain other activity. See Note 11: ''Employee Benefit Plans'' for additional information. |
Rollforward of Accrued Restructuring Charges | Changes in accrued restructuring charges from December 31, 2014 to December 31, 2016 are summarized as follows (in millions): Estimated employee separation charges Estimated costs to exit Total Balance as of December 31, 2014 $ 2.3 $ 1.1 $ 3.4 Charges 11.0 $ — 11.0 Usage (8.0 ) (0.6 ) (8.6 ) Balance as of December 31, 2015 $ 5.3 $ 0.5 $ 5.8 Charges 33.2 — $ 33.2 Usage (30.4 ) (0.5 ) $ (30.9 ) Balance as of December 31, 2016 $ 8.1 $ — $ 8.1 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Certain significant amounts included in the Company's balance sheet as of December 31, 2016 and December 31, 2015 consist of the following (in millions): December 31, 2016 December 31, 2015 Receivables, net: Accounts receivable $ 632.0 $ 432.6 Less: Allowance for doubtful accounts (2.2 ) (6.2 ) $ 629.8 $ 426.4 Inventories: Raw materials $ 121.4 $ 79.3 Work in process 606.9 457.8 Finished goods 301.9 213.3 $ 1,030.2 $ 750.4 Property, plant and equipment, net: Land $ 146.3 $ 46.2 Buildings 713.7 513.6 Machinery and equipment 3,131.1 2,327.5 Total property, plant and equipment 3,991.1 2,887.3 Less: Accumulated depreciation (1,832.0 ) (1,613.2 ) $ 2,159.1 $ 1,274.1 Accrued expenses: Accrued payroll $ 155.3 $ 95.1 Sales related reserves 124.8 69.9 Income taxes payable 30.0 11.1 Acquisition consideration payable to seller (See Note 4) 18.8 19.6 Other 76.1 50.5 $ 405.0 $ 246.2 Assets classified as held for sale, consisting of properties, machinery and equipment, and intangible assets are required to be recorded at the lower of carrying value or fair value less any costs to sell. The carrying value of these assets, as of December 31, 2016 and 2015 , was $34.1 million and $0.3 million , respectively, and is reported as other current assets on the Company’s Consolidated Balance Sheet. The Company expects to dispose of the remaining assets within the next 12 months. |
Warranty Reserves | The activity related to the Company's warranty reserves for 2014 , 2015 and 2016 follows (in millions): Balance as of December 31, 2013 $ 6.0 Provision 2.7 Usage (3.2 ) Balance as of December 31, 2014 $ 5.5 Provision 2.7 Usage (2.9 ) Balance as of December 31, 2015 $ 5.3 Provision 6.3 Usage (10.8 ) Warranty reserves from acquired businesses 8.0 Balance as of December 31, 2016 $ 8.8 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company's long-term debt consists of the following (annualized rates, dollars in millions): December 31, 2016 December 31, 2015 Revolving Credit Facility due 2021 $ — $ — Term Loan “B” Facility due 2023, interest payable monthly at 4.02% 2,394.0 — 1.00% Notes due 2020 (1) 690.0 690.0 2.625% Notes, Series B (2) 356.4 356.9 Note payable to SMBC due 2016 through 2018, interest payable quarterly at 2.75% and 2.36%, respectively (3) 160.4 198.2 U.S. real estate mortgages payable monthly through 2019 at an average rate of 3.12% and 3.35%, respectively (4) 38.9 50.0 Philippine term loans due 2016 through 2020, interest payable quarterly at 2.88% and 2.32%, respectively (7) 44.1 50.0 Loan with Singapore bank, interest payable weekly at 2.01% and 1.67%, respectively (6) (10) 25.0 30.0 Loan with Hong Kong bank, interest payable weekly at 2.01% and 1.67%, respectively (6) (10) 25.0 25.0 Malaysia revolving line of credit, interest payable quarterly at 2.45% and 2.05%, respectively (7) (10) 25.0 25.0 Vietnam revolving line of credit, interest payable quarterly at an average rate of 2.43% and 1.89%, respectively (7) (10) 17.0 20.8 Loan with Philippine bank due 2016 through 2019, interest payable quarterly at 3.22% and 2.70%, respectively (5) 14.1 18.8 Canada revolving line of credit, interest payable quarterly at 0.0% and 2.01%, respectively (7) — 15.0 Loan with Japanese bank due 2016 through 2020, interest payable quarterly at 1.1% (7) 3.4 4.2 Canada equipment financing payable monthly through 2017 at 3.81% (5) 0.5 2.4 U.S. equipment financing payable monthly through 2016 at 2.4% (5) — 1.3 Capital lease obligations 13.0 28.2 Gross long-term debt, including current maturities 3,806.8 1,515.8 Less: Debt discount (8) (111.4 ) (107.5 ) Less: Debt issuance costs (9) (73.1 ) (14.4 ) Net long-term debt, including current maturities 3,622.3 1,393.9 Less: Current maturities (553.8 ) (543.4 ) Net long-term debt $ 3,068.5 $ 850.5 _______________________ (1) Interest is payable on June 1 and December 1 of each year at 1.00% annually. See below under the heading " 1.00% Notes" for additional information. (2) The 2.625% Notes, Series B were redeemed during January 2017. See below under the heading " 2.625% Notes, Series B" for additional information. (3) This loan represents SCI LLC's non-collateralized loan with SMBC, which is guaranteed by the Company. See additional information below under the heading "Note Payable to SMBC." (4) Debt arrangement collateralized by real estate, including certain of the Company's facilities in California, Oregon and Idaho. See below under the heading "U.S. Real Estate Mortgages" for additional information with respect to recent activity. (5) Debt collateralized by equipment. (6) Debt arrangement collateralized by certain accounts receivable. (7) Non-collateralized debt arrangement. The Canada revolving line of credit was paid down during 2016 and terminated as of December 31, 2016. (8) Discount of $81.5 million and $100.2 million for the 1.00% Notes as of December 31, 2016 and December 31, 2015, respectively. Discount of zero and $7.3 million for the 2.625% Notes, Series B as of December 31, 2016 and December 31, 2015 , respectively. Discount of $29.9 million and zero for the term Loan "B" Facility as of December 31, 2016 and December 31, 2015 , respectively. (9) Debt issuance costs of $11.3 million and $13.9 million for the 1.00% Notes as of December 31, 2016 and December 31, 2015, respectively. Debt issuance costs of zero and $0.5 million for the 2.625% Notes, Series B as of December 31, 2016 and December 31, 2015 . Debt issuance costs of $61.8 million and zero for the term Loan "B" Facility as of December 31, 2016 and December 31, 2015 , respectively. (10) The Company has historically renewed these arrangements annually. |
Schedule of Annual Maturities Relating to Long-Term Debt | Expected maturities relating to the Company’s gross long-term debt (including current maturities) as of December 31, 2016 are as follows (in millions): Annual Maturities 2017 $ 554.7 2018 158.9 2019 71.5 2020 723.7 2021 24.0 Thereafter 2,274.0 Total $ 3,806.8 |
Earnings Per Share and Equity (
Earnings Per Share and Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Net Income Per Share | Calculations of net income per common share attributable to ON Semiconductor Corporation are as follows (in millions, except per share data): For the years ended December 31, 2016 2015 2014 Net income attributable to ON Semiconductor Corporation $ 182.1 $ 206.2 $ 189.7 Basic weighted average common shares outstanding 415.2 421.2 439.5 Add: Incremental shares for: Dilutive effect of share-based awards 3.8 4.6 4.0 Dilutive effect of convertible notes 1.0 2.0 — Diluted weighted average common shares outstanding 420.0 427.8 443.5 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 0.44 $ 0.49 $ 0.43 Diluted $ 0.43 $ 0.48 $ 0.43 |
Schedule of Share Repurchase Program | Information relating to the Company's share repurchase programs is as follows (in millions, except per share data): For the years ended December 31, 2016 2015(5) 2014 Number of repurchased shares (1) — 30.4 13.9 Beginning accrued share repurchases (2) $ — $ — $ 0.6 Aggregate purchase price — 347.8 121.0 Fees, commissions and other expenses — 0.4 0.2 Less: ending accrued share repurchases (3) — — — Total cash used for share repurchases $ — $ 348.2 $ 121.8 Weighted-average purchase price per share (4) $ — $ 11.46 $ 8.71 Available for future purchases at period end $ 628.2 $ 628.2 $ 976.0 _______________________ (1) None of these shares had been reissued or retired as of December 31, 2016 , but may be reissued or retired by the Company at a later date. (2) Represents unpaid amounts recorded in accrued expenses on the Company's Consolidated Balance Sheet as of the beginning of the period. (3) Represents unpaid amounts recorded in accrued expenses on the Company's Consolidated Balance Sheet as of the end of the period. (4) Exclusive of fees, commissions and other expenses. (5) Includes 5.4 million shares, totaling $70.0 million , repurchased concurrently with the issuance of the 1.00% Notes. See Note 8: ''Long-Term Debt'' for information with respect to the Company's long-term debt. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary Of Share-Based Compensation Expense | Total share-based compensation expense related to the Company's employee stock options, restricted stock units, stock grant awards and ESPP for the years ended December 31, 2016 , 2015 and 2014 was comprised as follows (in millions): Year Ended December 31, 2016 2015 2014 Cost of revenues $ 8.0 $ 7.7 $ 6.8 Research and development 11.1 9.2 8.7 Selling and marketing 9.8 8.5 8.1 General and administrative 27.2 21.5 22.2 Share-based compensation expense before income taxes 56.1 46.9 45.8 Related income tax benefits (1) — — — Share-based compensation expense, net of taxes $ 56.1 $ 46.9 $ 45.8 ____________________ (1) A majority of the Company’s share-based compensation relates to its domestic subsidiaries; therefore, no related deferred income tax benefits are recorded due to historical net operating losses at those subsidiaries. |
Summary Of Stock Option Plans | A summary of stock option transactions for all stock option plans follows (in millions except per share and contractual term data): Year Ended December 31, 2016 Number of Shares Weighted-Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2015 5.2 $ 7.85 Granted — — Exercised (1.8 ) 8.03 Canceled (0.1 ) 8.53 Outstanding at December 31, 2016 3.3 $ 7.75 1.78 $ 16.7 Exercisable at December 31, 2016 3.3 $ 7.75 1.78 $ 16.7 |
Additional Information On Stock Options Outstanding | Additional information about stock options outstanding at December 31, 2016 with exercise prices less than or above $ 12.76 per share, the closing price of the Company's common stock at December 31, 2016 , follows (number of shares in millions): Exercisable Unexercisable Total Exercise Prices Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Less than $12.76 3.3 $ 7.75 — $ — 3.3 $ 7.75 Above $12.76 — $ — — $ — — $ — Total outstanding 3.3 $ 7.75 — $ — 3.3 $ 7.75 |
Summary Of Restricted Stock Units Transactions | A summary of the restricted stock unit transactions for the year ended December 31, 2016 follows (number of shares in millions): Number of Shares Weighted-Average Grant Date Fair Value Nonvested shares of restricted stock units at December 31, 2015 8.5 $ 10.52 Granted 6.2 9.50 Achieved — — Released (4.3 ) 9.80 Canceled (0.7 ) 11.75 Nonvested shares of restricted stock units at December 31, 2016 9.7 $ 10.10 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Summary of Net Periodic Pension Cost | The following is a summary of the status of the Company's foreign defined benefit pension plans and the net periodic pension cost (dollars in millions): Year Ended December 31, 2016 2015 2014 Service cost $ 9.0 $ 8.4 $ 9.3 Interest cost 4.5 3.8 5.7 Expected return on plan assets (3.9 ) (3.5 ) (3.4 ) Curtailment gain — — (6.6 ) Actuarial and other (gain) loss 10.1 (5.0 ) 12.3 Total net periodic pension cost $ 19.7 $ 3.7 $ 17.3 Weighted average assumptions Discount rate 1.60 % 1.82 % 1.64 % Expected return on plan assets 3.20 % 2.46 % 2.25 % Rate of compensation increase 3.05 % 2.96 % 3.03 % |
Summary of Status Of Foreign Pension Plans | December 31, 2016 2015 Change in projected benefit obligation (PBO) Projected benefit obligation at the beginning of the year $ 234.4 $ 241.8 Service cost 9.0 8.4 Interest cost 4.5 3.8 Net actuarial (gain) loss 10.6 (5.2 ) Acquired PBO from Fairchild 17.4 — Benefits paid by plan assets (4.9 ) (3.8 ) Benefits paid by the Company (5.9 ) (2.7 ) Translation gain and other (3.3 ) (7.9 ) Projected benefit obligation at the end of the year $ 261.8 $ 234.4 Accumulated benefit obligation at the end of the year $ 222.4 $ 198.2 Change in plan assets Fair value of plan assets at the beginning of the year $ 147.2 $ 145.7 Acquired assets from Fairchild 9.1 — Actual return on plan assets 4.4 3.3 Benefits paid from plan assets (4.9 ) (3.8 ) Employer contributions 6.1 7.3 Translation and other loss (2.2 ) (5.3 ) Fair value of plan assets at the end of the year $ 159.7 $ 147.2 Plans with underfunded or non-funded projected benefit obligation Projected benefit obligation $ 256.1 $ 229.3 Fair value of plan assets 152.9 140.8 Plans with underfunded or non-funded accumulated benefit obligation Accumulated benefit obligation $ 138.9 $ 158.1 Fair value of plan assets $ 63.7 $ 95.8 Amounts recognized in the balance sheet consist of Current liabilities (0.1 ) (0.1 ) Non-current liabilities (102.0 ) (87.1 ) Funded status $ (102.1 ) $ (87.2 ) |
Fair Value Measurement of Plan Assets | The fair value measurement of plan assets in the Company's foreign pension plans as of December 31, 2016 and 2015 , was as follows (in millions): December 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset Category Cash/Money Markets $ 4.9 $ 4.9 $ — $ — Foreign Government/Treasury Securities (1) 15.6 15.6 — — Corporate Bonds, Debentures (2) 32.0 — 32.0 — Equity Securities (3) 28.8 — 28.8 — Mutual Funds 8.8 — 8.8 — Investment and Insurance Annuity Contracts (4) 69.6 — 22.4 47.2 $ 159.7 $ 20.5 $ 92.0 $ 47.2 December 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset Category Cash/Money Markets $ 4.6 $ 4.6 $ — $ — Foreign Government/Treasury Securities (1) 9.0 8.3 0.7 — Corporate Bonds, Debentures (2) 30.3 — 29.7 0.6 Equity Securities (3) 26.7 — 26.7 — Mutual Funds 7.7 — 7.7 — Investment and Insurance Annuity Contracts (4) 68.9 — 21.9 47.0 $ 147.2 $ 12.9 $ 86.7 $ 47.6 _______________________ (1) Includes investments primarily in guaranteed return securities. (2) Includes investments in government bonds and corporate bonds of developed countries, emerging market government bonds, emerging market corporate bonds and convertible bonds. (3) Includes investments in equity securities of developed countries and emerging markets. (4) Includes certain investments with insurance companies which guarantee a minimum rate of return on the investment. |
Activity of Plan Assets With Fair Value Measurement Using Significant Unobservable Inputs | Activity during the year ended December 31, 2016 for plan assets with fair value measurement using significant unobservable inputs (Level 3) was as follows (in millions): Corporate Bonds, Debentures Investment and Insurance Contracts Total Balance at December 31, 2014 $ 0.7 $ 51.5 $ 52.2 Actual return on plan assets (0.1 ) — (0.1 ) Purchase, sales and settlements — 0.6 0.6 Foreign currency impact — (5.1 ) (5.1 ) Balance at December 31, 2015 $ 0.6 $ 47.0 $ 47.6 Actual return on plan assets — 3.3 3.3 Purchase, sales and settlements (0.6 ) (0.4 ) (1.0 ) Foreign currency impact — (2.7 ) (2.7 ) Balance at December 31, 2016 $ — $ 47.2 $ 47.2 |
Expected Benefit Payments | The expected benefit payments for the Company's defined benefit plans by year from 2017 through 2021 and the five years thereafter are as follows (in millions): 2017 $ 3.8 2018 4.9 2019 5.6 2020 7.3 2021 10.8 Five years thereafter 73.7 Total $ 106.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases Future Minimum Payments Receivable | The following is a schedule by year of future minimum lease obligations under non-cancelable operating leases as of December 31, 2016 (in millions): Year Ending December 31, 2017 $ 37.6 2018 26.5 2019 17.9 2020 13.5 2021 9.8 Thereafter 43.6 Total $ 148.9 |
Future Minimum Purchase Obligations Under Non-cancelable Agreements | The following is a schedule by year of future minimum purchase obligations under non-cancelable arrangements in the ordinary course of business as of December 31, 2016 (in millions): Year Ending December 31, 2017 $ 291.1 2018 32.9 2019 27.9 2020 17.3 2021 14.3 Thereafter 19.0 Total $ 402.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Assets And Liabilities Measured On Recurring Basis | The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and December 31, 2015 (in millions): Fair Value Measurements as of December 31, 2016 Description Balance as of December 31, 2016 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 67.2 $ 67.2 — — Money market funds $ 30.3 $ 30.3 — — Liabilities: Contingent consideration $ 4.5 — — $ 4.5 During the year ended December 31, 2016 , the contingent consideration for the AXSEM acquisition was reduced from $5.0 million to $4.5 million due to the revision of the Company’s expectations of the Earn-out achievement. Fair Value Measurements as of December 31, 2015 Description Balance as of December 31, 2015 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 9.5 $ 9.5 — — Money market funds $ 33.2 $ 33.2 — — Liabilities: Designated cash flow hedges $ 0.2 — $ 0.2 — Foreign currency exchange contracts $ 0.1 — $ 0.1 — Contingent consideration $ 5.0 — — $ 5.0 |
Fair Value, by Balance Sheet Grouping | The carrying amounts and fair values of the Company’s long-term borrowings (excluding capital lease obligations, real estate mortgages and equipment financing) at December 31, 2016 and December 31, 2015 are as follows (in millions): December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion Convertible Notes (1) $ 953.6 $ 1,160.9 $ 925.0 $ 1,041.9 Long-term debt (1) $ 2,616.3 $ 2,731.5 $ 386.9 $ 386.6 _______________________ (1) Carrying amount shown is net of debt discounts and debt issuance costs. See Note 8: ''Long-Term Debt'' for additional information. |
Fair Value Measurements, Nonrecurring | The following table shows the adjustments to fair value of certain of the Company's non-financial assets that had an impact on the Company's results of operations during the years ended December 31, 2016 , December 31, 2015 and December 31, 2014 (in millions): Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Nonrecurring fair value measurements Impairment of property, plant and equipment held for use or disposal (Level 3) $ 0.5 $ 0.2 $ 6.0 Goodwill impairment (Level 3) — — 8.7 IPRD (Level 3) 2.2 3.8 0.9 $ 2.7 $ 4.0 $ 15.6 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
Schedule Of Net Foreign Exchange Positions | The following schedule summarizes the Company's net foreign exchange positions in U.S. dollars as of December 31, 2016 and 2015 (in millions): December 31, 2016 Buy (Sell) 2016 Notional Amount 2015 Buy (Sell) 2015 Notional Amount Euro $ (25.4 ) $ 25.4 $ (17.5 ) $ 17.5 Japanese Yen (33.7 ) 33.7 (30.0 ) 30.0 Malaysian Ringgit — — 7.1 7.1 Philippine Peso 15.8 15.8 13.7 13.7 Other currencies - Buy (6.1 ) 6.1 17.1 17.1 Other currencies - Sell 14.9 14.9 (4.4 ) 4.4 $ (34.5 ) $ 95.9 $ (14.0 ) $ 89.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes And Minority Interests | The Company's geographic sources of income before income taxes and non-controlling interest are as follows (in millions): Year ended December 31, 2016 2015 2014 United States $ (287.0 ) $ (102.7 ) $ (56.2 ) Foreign 467.6 322.5 248.1 $ 180.6 $ 219.8 $ 191.9 |
Provision (Benefit) For Income Taxes | The Company's provision for income taxes is as follows (in millions): Year ended December 31, 2016 2015 2014 Current: Federal $ (0.1 ) $ — $ (1.5 ) State and local 0.1 2.0 — Foreign 34.4 21.3 20.1 34.4 23.3 18.6 Deferred: Federal 60.8 0.4 (17.1 ) State and local — (1.4 ) (2.9 ) Foreign (99.1 ) (11.5 ) 1.2 (38.3 ) (12.5 ) (18.8 ) Total provision (benefit) $ (3.9 ) $ 10.8 $ (0.2 ) |
Reconciliation Of The U.S. Federal Statutory Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is as follows: Year ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State and local taxes, net of federal tax benefit (3.6 ) (1.0 ) (0.5 ) Impact of foreign operations (8.1 ) (39.8 ) (33.9 ) Reversal of prior years’ indefinite reinvestment assertion 172.1 — — Dividend income from foreign subsidiaries 0.2 85.5 13 Change in valuation allowance and related effects (190.7 ) (75.3 ) (17.8 ) Nondeductible acquisition costs 1.9 0.1 0.9 Nondeductible share-based compensation costs 0.7 0.9 2.1 Deferred tax liability for assets with indefinite useful lives — (0.5 ) 1.7 US federal R&D credit (10.1 ) — — Return to accrual (0.5 ) (0.9 ) (0.5 ) Other 0.9 0.9 (0.1 ) Total (2.2 )% 4.9 % (0.1 )% |
Tax Effects Of Temporary Differences | The tax effects of temporary differences in the recognition of income and expense for tax and financial reporting purposes that give rise to significant portions of the deferred tax assets, net of deferred tax liabilities, as of December 31, 2016 and December 31, 2015 , are as follows (in millions): Year ended December 31, 2016 2015 Net operating loss and tax credit carryforwards $ 978.1 $ 692.0 Tax-deductible goodwill and amortizable intangibles (57.1 ) (35.9 ) Reserves and accruals 51.7 25.2 Property, plant and equipment (60.9 ) 21.3 Inventories 42.1 26.3 Undistributed earnings of foreign subsidiaries (639.1 ) — Share-based compensation 14.3 14.0 Pension 21.5 17.9 Debt financing costs (40.8 ) — Other 14.3 2.1 Deferred tax assets and liabilities before valuation allowance 324.1 762.9 Valuation allowance (474.1 ) (735.7 ) Net deferred tax asset (liability) $ (150.0 ) $ 27.2 |
Activity For Unrecognized Gross Tax Benefits | The activity for unrecognized gross tax benefits for 2016 , 2015 , and 2014 is as follows (in millions): 2016 2015 2014 Balance at beginning of year $ 33.5 $ 31.2 $ 20.9 Acquired balances 86.9 — — Additions based on tax positions related to the current year 4.6 9.2 9.0 Additions for tax positions of prior years 13.7 3.4 5.3 Reductions for tax positions of prior years (0.4 ) (6.9 ) (0.6 ) Lapse of statute (1.6 ) (3.3 ) (3.4 ) Settlements — (0.1 ) — Balance at end of year $ 136.7 $ 33.5 $ 31.2 |
Changes in Accumulated Other 42
Changes in Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Amounts comprising the Company's accumulated other comprehensive loss and reclassifications for the years ended December 31, 2016 and December 31, 2015 are as follows (in millions): Foreign Currency Translation Adjustments Effects of Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Total Balance as of December 31, 2014 $ (42.5 ) $ (3.5 ) $ 4.5 $ (41.5 ) Other comprehensive income (loss) prior to reclassifications (1) 0.3 11.1 (0.4 ) 11.0 Amounts reclassified from accumulated other comprehensive loss — (7.7 ) (4.1 ) (11.8 ) Net current period other comprehensive loss 0.3 3.4 (4.5 ) (0.8 ) Balance as of December 31, 2015 $ (42.2 ) $ (0.1 ) $ — $ (42.3 ) Other comprehensive income (loss) prior to reclassifications (1) (8.0 ) 0.3 — (7.7 ) Amounts reclassified from accumulated other comprehensive loss — (0.2 ) — (0.2 ) Net current period other comprehensive loss (8.0 ) 0.1 — (7.9 ) Balance as of December 31, 2016 $ (50.2 ) $ — $ — $ (50.2 ) _______________________ (1) Foreign currency translation adjustments are net of tax of $0.2 million and $0.0 million for the years ended December 31, 2016 and December 31, 2015 , respectively. |
Schedule of Reclassifications from Accumulated Other Comprehensive Loss | Amounts which were reclassified from accumulated other comprehensive loss to the Company's Consolidated Statements of Operations and Comprehensive Income during the years ended December 31, 2016 and December 31, 2015 , were as follows (net of tax of $0 in 2016 and 2015 , respectively, in millions): Amounts Reclassified from Accumulated Other Comprehensive Loss December 31, 2016 December 31, 2015 Affected Line Item Where Net Income is Presented Effects of cash flow hedges $ 0.2 $ (7.7 ) Cost of revenues Gains and Losses on Available-for-sale securities — (4.1 ) Other income and expense Total reclassifications $ 0.2 $ (11.8 ) |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The Company's non-cash financing activities and cash payments for interest and income taxes during the years ended December 31, 2016 , 2015 and 2014 are as follows (in millions): Year ended December 31, 2016 2015 2014 Non-cash financing activities: Debt issuance costs paid directly from escrow accounts $ 46.0 Capital expenditures in accounts payable and other liabilities $ 105.9 $ 102.2 $ 108.5 Equipment acquired or refinanced through capital leases — 12.5 14.5 Cash (received) paid for: Interest income $ (4.5 ) $ (1.1 ) $ (1.5 ) Interest expense 106.7 28.4 25.7 Income taxes 27.3 20.0 18.1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Segments and Product Lines | Power Solutions Group Analog Solutions Group Image Sensor Group Bipolar Power (8) Automotive ASSPs (1) CCD Image Sensors (7) Thyristor (8) Analog Automotive (2) CMOS Image Sensors (7) Small Signal (8) Automotive Power Switching (3) Proximity Sensors (13) Zener (8) Automotive Mixed-Signal Solutions (1) Linear Light Sensors (7) Protection (3) Medical ASICs & ASSPs (1) Image Stabilizer ICs (12) Rectifier (8) Mixed-Signal ASICs (1) Auto Focus ICs (12) Filters (3) Industrial ASSPs (1) MOSFETs (3) High Frequency / Timing (4) Signal & Interface (2) IPDs (5) Standard Logic (6) Foundry and Manufacturing Services (5) LDO's & VREGs (2) Hearing Components (1) EE Memory and Programmable Analog (9) DC-DC Conversion (2) IGBTs (3) Analog Switches (6) Power MOSFETs (10) AC-DC Conversion (2) Power and Signal Discretes (10) Low Voltage Power Management (2) Intelligent Power Modules (11) Power Switching (2) Smart Passive Sensors (13) RF Antenna Tuning Solutions (1) PIM (14) Motor Driver ICs (12) Display Drivers (12) ASICs (12) Microcontrollers (12) Flash Memory (12) Touch Sensor (12) Power Supply IC (12) Audio DSP (12) Audio Tuners (12) _______________________ (1) ASIC products (8) Discrete products (2) Analog products (9) Memory products (3) TMOS products (10) HD products (4) ECL products (11) IPM products (5) Foundry products / services (12) LSI products (6) Standard logic products (13) Other sensor products (7) Image sensor / ASIC products (14) PIM Products |
Segment Information Of Revenues, Gross Profit And Operating Income | Revenues and gross profit for the Company’s reportable segments for the years ended December 31, 2016 , December 31, 2015 and December 31, 2014 , respectively, are as follows (in millions): Power Solutions Group Analog Solutions Group Image Sensor Group Total For year ended December 31, 2016: Revenues from external customers $ 1,708.6 $ 1,481.5 $ 716.8 $ 3,906.9 Segment gross profit 566.3 589.0 236.5 1,391.8 For year ended December 31, 2015: Revenues from external customers $ 1,409.9 $ 1,338.6 $ 747.3 $ 3,495.8 Segment gross profit 428.7 537.9 242.4 1,209.0 For year ended December 31, 2014: Revenues from external customers $ 1,423.5 $ 1,415.8 $ 322.5 $ 3,161.8 Segment gross profit 446.8 574.5 97.0 1,118.3 |
Reconciliation Of Operating Profit (Loss) From Segments To Consolidated | Depreciation expense is included in segment gross profit. Reconciliations of segment gross profit to consolidated gross profit are as follows (in millions): Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Gross profit for reportable segments $ 1,391.8 $ 1,209.0 $ 1,118.3 Less: unallocated manufacturing costs (94.9 ) (15.8 ) (33.4 ) Consolidated gross profit $ 1,296.9 $ 1,193.2 $ 1,084.9 |
Revenues By Geographic Location Including Local Sales And Exports | Revenues by geographic location, including local sales made by operations within each area, based on sales billed from the respective country, are summarized as follows (in millions): Year Ended December 31, 2016 December 31, 2015 December 31, 2014 United States $ 588.4 $ 544.3 $ 497.0 United Kingdom 541.1 503.2 497.9 Hong Kong 1,086.8 874.4 975.3 Japan 334.5 281.7 293.1 Singapore 1,110.4 1,120.7 786.5 Other 245.7 171.5 112.0 $ 3,906.9 $ 3,495.8 $ 3,161.8 |
Summary Of Property, Plant And Equipment By Geographic Location | Property, plant and equipment, net by geographic location, are summarized as follows (in millions): December 31, December 31, United States $ 548.1 $ 326.2 Korea 385.9 0.2 Malaysia 224.0 226.5 Philippines 381.7 259.1 China 217.7 111.0 Other 401.7 351.1 $ 2,159.1 $ 1,274.1 |
Supplementary Financial Infor45
Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | onsolidated unaudited quarterly financial information for 2016 and 2015 is as follows (in millions, except per share data): Quarter ended 2016 April 1 July 1 September 30 December 31 Revenues $ 817.2 $ 877.8 $ 950.9 $ 1,261.0 Gross Profit (exclusive of the amortization of acquisition related intangible assets) 275.5 307.9 329.0 384.5 Net income attributable to ON Semiconductor Corporation 36.0 25.1 10.1 110.9 Diluted net income per common share attributable to ON Semiconductor Corporation 0.09 0.06 0.02 0.26 Quarter ended 2015 April 3 July 3 September 26 December 31 Revenues $ 870.8 $ 880.5 $ 904.2 $ 840.3 Gross Profit (exclusive of the amortization of acquisition related intangible assets) 300.4 304.4 308.5 279.9 Net income (loss) attributable to ON Semiconductor Corporation 55.1 50.7 46.3 54.1 Diluted net income per common share attributable to ON Semiconductor Corporation 0.13 0.12 0.11 0.13 |
Background and Basis of Prese46
Background and Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Significant Accounting Polici47
Significant Accounting Policies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |
Repayment period of distributor (in days) | 30 days |
Standard product warranty, period from the date of shipment (in years) | 2 years |
Repayment period of account receivable, cash discount, after the date of shipment (in days) | 10 days |
Minimum [Member] | Building [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of property, plant and equipment (in years) | 30 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of property, plant and equipment (in years) | 3 years |
Maximum [Member] | Building [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of property, plant and equipment (in years) | 50 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful lives of property, plant and equipment (in years) | 20 years |
Acquisitions and Divestitures48
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Millions | Dec. 19, 2016 | Sep. 19, 2016 | Aug. 29, 2016 | Jul. 15, 2015 | Aug. 15, 2014 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 03, 2015 | Apr. 30, 2014 |
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs | $ 25.8 | $ 3.5 | ||||||||||
Inventories | $ 0 | |||||||||||
Weighted average useful life (in years) | 12 years 1 month | |||||||||||
Goodwill | 924.7 | $ 263.8 | $ 924.7 | 270.6 | $ 263.8 | |||||||
Proceeds from divestiture of business | 104 | 0 | 0 | |||||||||
Gain on divestiture of business | 92.2 | 0 | 0 | |||||||||
Inventory under production | 606.9 | 606.9 | 457.8 | |||||||||
Contingent consideration | 18.8 | 18.8 | 19.6 | |||||||||
Amortization of acquisition-related intangible assets | $ 104.8 | 135.7 | 68.4 | |||||||||
Developed Technology [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average useful life (in years) | 11 years | |||||||||||
Customer Relationships [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average useful life (in years) | 15 years | |||||||||||
Backlog [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average useful life (in years) | 6 months | |||||||||||
Fairchild [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amount of non-controlling interest acquired in the period (as a percent) | 100.00% | |||||||||||
Purchase price | $ 2,532.2 | |||||||||||
Business combination, revenue recognized | 411.5 | |||||||||||
Business combination, net loss | 34.5 | |||||||||||
Inventories | 67.5 | |||||||||||
In-process research and development | 102.4 | 134.2 | $ 134.2 | |||||||||
Discount rate (as a percent) | 14.50% | |||||||||||
Intangible assets acquired | 423.4 | 413.6 | $ 413.6 | |||||||||
Goodwill | $ 733.6 | 656.1 | 656.1 | |||||||||
Business combination, acquisition cost | 24.7 | |||||||||||
Revenues | 4,912.8 | 4,866 | ||||||||||
Net income (loss) attributable to ON Semiconductor Corporation | 196.6 | 58.2 | ||||||||||
Fairchild [Member] | Developed Technology [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | 272.7 | 272.7 | ||||||||||
Fairchild [Member] | Customer Relationships [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | 135.5 | 135.5 | ||||||||||
Fairchild [Member] | Backlog [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | 3 | 3 | ||||||||||
AXSEM [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amount of non-controlling interest acquired in the period (as a percent) | 100.00% | |||||||||||
Purchase price | $ 8 | |||||||||||
Contingent consideration | $ 5 | |||||||||||
Change in Earn-out estimated fair value | 0.5 | |||||||||||
Aptina [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amount of non-controlling interest acquired in the period (as a percent) | 100.00% | |||||||||||
Purchase price | $ 405.4 | |||||||||||
Inventories | 22.3 | |||||||||||
In-process research and development | 51.3 | |||||||||||
Intangible assets acquired | 207.8 | |||||||||||
Goodwill | 64.4 | |||||||||||
Consideration paid | $ 2.9 | |||||||||||
Consideration placed in escrow | 40 | 40 | ||||||||||
Revenues | 209 | |||||||||||
Net income (loss) attributable to ON Semiconductor Corporation | (39.2) | |||||||||||
Amortization of acquisition-related intangible assets | 25.5 | |||||||||||
Business severance charges | 5.9 | 5.9 | ||||||||||
Consideration released from escrow | 1 | 21.2 | ||||||||||
Restricted cash | 17.8 | 17.8 | 18.8 | |||||||||
Aptina [Member] | Developed Technology [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | $ 79 | |||||||||||
Weighted average useful life (in years) | 6 years | |||||||||||
Aptina [Member] | Customer Relationships [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | $ 126.5 | |||||||||||
Aptina [Member] | Customer Relationships [Member] | Minimum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average useful life (in years) | 2 years | |||||||||||
Aptina [Member] | Customer Relationships [Member] | Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average useful life (in years) | 6 years | |||||||||||
Aptina [Member] | Trademarks [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets acquired | $ 2.3 | |||||||||||
Weighted average useful life (in years) | 6 months | |||||||||||
Truesense Imaging, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amount of non-controlling interest acquired in the period (as a percent) | 100.00% | |||||||||||
Inventories | 4.7 | |||||||||||
In-process research and development | $ 10.2 | |||||||||||
Intangible assets acquired | 35.5 | |||||||||||
Goodwill | 23.5 | |||||||||||
Revenues | 53.4 | |||||||||||
Net income (loss) attributable to ON Semiconductor Corporation | (0.3) | |||||||||||
Amortization of acquisition-related intangible assets | 10.4 | |||||||||||
Purchase price | 95.7 | |||||||||||
Goodwill, tax deductible amount | $ 2 | 2 | ||||||||||
Truesense Imaging, Inc. [Member] | Scenario, Actual [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 23.5 | |||||||||||
Business Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amortization of acquisition-related intangible assets | $ 50.8 | |||||||||||
Power Solutions Group [Member] | Fairchild [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 366.1 | 366.1 | ||||||||||
Analog Solutions Group [Member] | Fairchild [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 289.9 | 289.9 | ||||||||||
IGBT and Thyristor [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from divestiture of business | $ 104 | |||||||||||
Gain on divestiture of business | 92.2 | |||||||||||
Inventory transferred | 4.1 | |||||||||||
Goodwill impairment | 3.4 | |||||||||||
Proceeds deferred | $ 4.3 | |||||||||||
HSET Electronic Tech (Hong Kong) Limited [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from divestiture of business | $ 75 | |||||||||||
Inventory under production | 13.9 | 13.9 | ||||||||||
Fair Value, Measurements, Recurring [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration | 4.5 | 4.5 | 5 | |||||||||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration | $ 4.5 | $ 4.5 | $ 5 |
Acquisitions and Divestitures49
Acquisitions and Divestitures (Acquisitions Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Millions | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 19, 2016 | Dec. 31, 2015 | Aug. 15, 2014 | Apr. 30, 2014 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 924.7 | $ 263.8 | $ 263.8 | $ 270.6 | |||
Measurement Period Adjustments | |||||||
Cash and cash equivalents | 0 | ||||||
Receivables | 0 | ||||||
Inventories | 0 | ||||||
Other current assets | 1.7 | ||||||
Property, plant and equipment | 112.3 | ||||||
Goodwill | (77.5) | ||||||
Intangible assets (excluding IPRD) | (9.8) | ||||||
In-process research and development | 31.8 | ||||||
Other non-current assets | (4.6) | ||||||
Total assets acquired | 53.9 | ||||||
Accounts payable | 0 | ||||||
Other current liabilities | 8 | ||||||
Deferred tax liabilities | 45.9 | ||||||
Other non-current liabilities | 0 | ||||||
Total liabilities assumed | 53.9 | ||||||
Net assets acquired/purchase price | 0 | ||||||
Fairchild [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | 255 | $ 255 | |||||
Receivables | 227.3 | 227.3 | |||||
Inventories | 342.3 | 342.3 | |||||
Other current assets | 61 | 59.3 | |||||
Property, plant and equipment | 925.8 | 813.5 | |||||
Goodwill | 656.1 | 733.6 | |||||
Intangible assets | 413.6 | 423.4 | |||||
In-process research and development | 134.2 | 102.4 | |||||
Other non-current assets | 13.1 | 17.7 | |||||
Total assets acquired | 3,028.4 | 2,974.5 | |||||
Accounts payable | 79.4 | 79.4 | |||||
Other current liabilities | 168.1 | 160.1 | |||||
Deferred tax liabilities | 213.5 | 167.6 | |||||
Other non-current liabilities | 35.2 | 35.2 | |||||
Total liabilities assumed | 496.2 | 442.3 | |||||
Net assets acquired | 2,532.2 | $ 2,532.2 | |||||
Measurement Period Adjustments | |||||||
Inventories | $ 67.5 | ||||||
Aptina [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 30.3 | ||||||
Receivables | 53.2 | ||||||
Inventories | 84.8 | ||||||
Other current assets | 5.7 | ||||||
Property, plant and equipment | 36.3 | ||||||
Goodwill | 64.4 | ||||||
Intangible assets | 207.8 | ||||||
In-process research and development | 51.3 | ||||||
Other non-current assets | 2.3 | ||||||
Total assets acquired | 536.1 | ||||||
Accounts payable | 66.6 | ||||||
Other current liabilities | 49.7 | ||||||
Other non-current liabilities | 14.4 | ||||||
Total liabilities assumed | 130.7 | ||||||
Net assets acquired | $ 405.4 | ||||||
Measurement Period Adjustments | |||||||
Inventories | $ 22.3 | ||||||
Truesense Imaging, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 4.2 | ||||||
Receivables | 8.8 | ||||||
Inventories | 18.3 | ||||||
Other current assets | 3.6 | ||||||
Property, plant and equipment | 26.4 | ||||||
Goodwill | 23.5 | ||||||
Intangible assets | 35.5 | ||||||
In-process research and development | 10.2 | ||||||
Total assets acquired | 130.5 | ||||||
Accounts payable | 3.8 | ||||||
Other current liabilities | 6 | ||||||
Other non-current liabilities | 25 | ||||||
Total liabilities assumed | 34.8 | ||||||
Net assets acquired | $ 95.7 | ||||||
Measurement Period Adjustments | |||||||
Inventories | $ 4.7 |
Acquisitions and Divestitures50
Acquisitions and Divestitures (Schedule of Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fairchild [Member] | |||
Business Acquisition [Line Items] | |||
Non-recurring acquisition advisory fees | $ 16.9 | ||
Revenues | 4,912.8 | $ 4,866 | |
Net income attributable to ON Semiconductor Corporation | 196.6 | 58.2 | |
Net income attributable to ON Semiconductor Corporation | $ 194.2 | $ 55.4 | |
Net income per common share attributable to ON Semiconductor Corporation, Basic (in dollars per share) | $ 0.47 | $ 0.13 | |
Net income per common share attributable to ON Semiconductor Corporation, Diluted (in dollars per share) | $ 0.46 | $ 0.13 | |
Aptina, Inc. and Truesense Imaging, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Revenues | $ 3,536.4 | ||
Gross profit | 1,213.7 | ||
Net income attributable to ON Semiconductor Corporation | $ 147.8 | ||
Net income per common share attributable to ON Semiconductor Corporation, Basic (in dollars per share) | $ 0.34 | ||
Net income per common share attributable to ON Semiconductor Corporation, Diluted (in dollars per share) | $ 0.33 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 19, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment test discount rate | 10.50% | 11.00% | |||
Goodwill impairment test long term growth rate | 3.00% | 3.00% | |||
Impairment of intangible assets | $ 43,300,000 | $ 41,400,000 | |||
Fairchild [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired intangible assets | 547,800,000 | ||||
Intangible assets acquired | 413,600,000 | $ 423,400,000 | |||
Standard Products Group [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | 0 | ||||
Analog Solutions Group [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | $ 8,700,000 | ||||
Impairment of intangible assets | $ 900,000 | ||||
Impairment of long-lived assets | $ 4,700,000 | ||||
In Process Research and Development [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets | 6,000,000 | $ 3,800,000 | |||
IPRD projects reclassified to developed technology | 21,600,000 | ||||
Image Sensor Group [Member] | In Process Research and Development [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets | $ 2,200,000 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets (Summary Of Goodwill by Operating Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | |||
Goodwill | $ 1,372.2 | $ 718.1 | |
Accumulated Impairment Losses | (447.5) | (447.5) | |
Carrying Value | 924.7 | 270.6 | $ 263.8 |
Application Products Group [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 836.7 | 546.7 | |
Accumulated Impairment Losses | (418.9) | (418.9) | |
Carrying Value | 417.8 | 127.8 | |
Image Sensor Group [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 96.8 | 95.4 | |
Accumulated Impairment Losses | 0 | 0 | |
Carrying Value | 96.8 | 95.4 | |
Standard Products Group [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 438.7 | 76 | |
Accumulated Impairment Losses | (28.6) | (28.6) | |
Carrying Value | $ 410.1 | $ 47.4 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets (Summary Of Change In Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 270.6 | $ 263.8 |
Additions due to business combinations | 657.5 | 6.8 |
Divestiture of business | (3.4) | |
Goodwill, ending balance | $ 924.7 | $ 270.6 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Summary Of Intangible Assets, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | $ 1,341.3 | $ 803.4 |
Accumulated Amortization | (535.9) | (436.2) |
Accumulated Impairment Losses | (43.3) | (41.4) |
Carrying Value | 762.1 | 325.8 |
Intellectual property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 13.9 | 13.9 |
Accumulated Amortization | (11.2) | (10.6) |
Accumulated Impairment Losses | (0.4) | (0.4) |
Carrying Value | 2.3 | 2.9 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 549 | 419.8 |
Accumulated Amortization | (283.3) | (239.6) |
Accumulated Impairment Losses | (19.5) | (19.8) |
Carrying Value | 246.2 | 160.4 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 43.7 | 43.7 |
Accumulated Amortization | (25.4) | (23.6) |
Accumulated Impairment Losses | (13.7) | (13.7) |
Carrying Value | 4.6 | 6.4 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 566.9 | 268 |
Accumulated Amortization | (201.6) | (152.2) |
Accumulated Impairment Losses | (2.6) | (2.6) |
Carrying Value | 362.7 | 113.2 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 17.2 | 16.3 |
Accumulated Amortization | (11.6) | (9.9) |
Accumulated Impairment Losses | (1.1) | (1.1) |
Carrying Value | 4.5 | 5.3 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 3.3 | 0.3 |
Accumulated Amortization | (2.4) | (0.3) |
Accumulated Impairment Losses | 0 | 0 |
Carrying Value | 0.9 | 0 |
Off-Market Favorable Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 1.5 | |
Accumulated Amortization | (0.4) | |
Accumulated Impairment Losses | 0 | |
Carrying Value | 1.1 | |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 145.8 | 41.4 |
Accumulated Amortization | 0 | 0 |
Accumulated Impairment Losses | (6) | (3.8) |
Carrying Value | $ 139.8 | $ 37.6 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets (Summary Of Amortization Expense) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 112.8 |
2,018 | 94.5 |
2,019 | 87.7 |
2,020 | 72.4 |
2,021 | 59.7 |
Thereafter | 195.2 |
Total estimated amortization expense | $ 622.3 |
Restructuring, Asset Impairme56
Restructuring, Asset Impairments and Other, Net (Reconciliation Of "Restructuring, Asset Impairments And Other, Net" Caption On The Consolidated Statement Of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 33.2 | $ 11 | $ 28.1 |
Asset Impairments | 0 | 0.2 | 6 |
Other | 0 | (1.9) | (3.6) |
Total | 33.2 | 9.3 | 30.5 |
Special Termination Benefits [Member] | Cost Reduction Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 25.7 | ||
Asset Impairments | 0 | ||
Other | 0 | ||
Total | 25.7 | ||
Workforce Reduction [Member] | Business Combination Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 5.3 | ||
Asset Impairments | 0 | ||
Other | 0 | ||
Total | 5.3 | ||
Workforce Reduction [Member] | Restructuring Plan - 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0.3 | 4.8 | |
Asset Impairments | 0 | 0 | |
Other | 0 | 0 | |
Total | 0.3 | 4.8 | |
Workforce Reduction [Member] | System Solutions Group Voluntary Retirement Programs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 10.4 | ||
Asset Impairments | 0 | ||
Other | (4.5) | ||
Total | 5.9 | ||
Employee Severance [Member] | Business Combination Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 1 | 5.9 | |
Asset Impairments | 0 | 0 | |
Other | 0 | 0 | |
Total | 1 | 5.9 | |
Employee Severance [Member] | European Marketing Organization Relocation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2.1 | 3.5 | |
Asset Impairments | 0 | 0 | |
Other | 0 | 0 | |
Total | 2.1 | 3.5 | |
Facility Closing [Member] | KSS Facility Closure [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0.3 | 10.1 | |
Asset Impairments | 0 | 0 | |
Other | (3.4) | (2.1) | |
Total | (3.1) | 8 | |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (0.2) | 1.4 | 1.7 |
Asset Impairments | 0 | 0.2 | 6 |
Other | 0 | 1.5 | 3 |
Total | $ (0.2) | $ 3.1 | $ 10.7 |
Restructuring, Asset Impairme57
Restructuring, Asset Impairments and Other, Net (Rollforward of Accrued Restructuring Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | $ 5.8 | $ 3.4 |
Charges | 33.2 | 11 |
Usage | (30.9) | (8.6) |
Balance at End of Period | 8.1 | 5.8 |
Estimated Employee Separation Charges [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | 5.3 | 2.3 |
Charges | 33.2 | 11 |
Usage | (30.4) | (8) |
Balance at End of Period | 8.1 | 5.3 |
Estimated Costs To Exit [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | 0.5 | 1.1 |
Charges | 0 | 0 |
Usage | (0.5) | (0.6) |
Balance at End of Period | $ 0 | $ 0.5 |
Restructuring, Asset Impairme58
Restructuring, Asset Impairments and Other, Net (Narrative) (Details) | Sep. 19, 2016employee | Mar. 31, 2016employee | Jan. 31, 2015employee | Dec. 31, 2016USD ($)employee | Dec. 31, 2016USD ($)programemployee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | $ 33,200,000 | $ 11,000,000 | |||||
Payments for restructuring | 30,900,000 | 8,600,000 | |||||
Accrued liabilities | $ 8,100,000 | 8,100,000 | 5,800,000 | $ 3,400,000 | |||
Cost Reduction Plan [Member] | Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected number of positions to be eliminated | employee | 130 | ||||||
Charges | 25,700,000 | ||||||
Payments for restructuring | $ 20,200,000 | ||||||
Number of positions eliminated | employee | 95 | ||||||
Number of restructuring programs | program | 2 | ||||||
Accrued liabilities | $ 5,500,000 | $ 5,500,000 | |||||
Restructuring Plan - 2015 [Member] | Workforce Reduction [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected number of positions to be eliminated | employee | 150 | ||||||
Charges | $ 5,100,000 | ||||||
Payments for restructuring | 1,300,000 | 3,800,000 | |||||
Accrued liabilities | 0 | 0 | |||||
Systems Solutions Group Voluntary Workforce Reduction [Member] | Workforce Reduction [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Accrued liabilities | 0 | 0 | |||||
Number of positions eliminated voluntarily | employee | 75 | ||||||
Total charges expected to incur | 5,300,000 | $ 5,300,000 | |||||
Manufacturing Relocation [Member] | Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected number of positions to be eliminated | employee | 160 | ||||||
Accrued liabilities | 2,100,000 | $ 2,100,000 | |||||
Total charges expected to incur | 5,700,000 | 5,700,000 | |||||
European Marketing Organization Relocation [Member] | Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | 3,500,000 | ||||||
Payments for restructuring | 2,900,000 | $ 600,000 | |||||
Number of positions eliminated | employee | 6 | ||||||
Accrued liabilities | $ 0 | $ 0 |
Balance Sheet Information (Supp
Balance Sheet Information (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Long Lived Assets Held-for-sale [Line Items] | ||
Taxes Payable, Current | $ 30 | $ 11.1 |
Receivables, net: | ||
Accounts receivable | 632 | 432.6 |
Less: Allowance for doubtful accounts | (2.2) | (6.2) |
Accounts receivable, net | 629.8 | 426.4 |
Inventories: | ||
Raw materials | 121.4 | 79.3 |
Work in process | 606.9 | 457.8 |
Finished goods | 301.9 | 213.3 |
Inventories, net | 1,030.2 | 750.4 |
Property, plant and equipment, net: | ||
Land | 146.3 | 46.2 |
Buildings | 713.7 | 513.6 |
Machinery and equipment | 3,131.1 | 2,327.5 |
Total property, plant and equipment | 3,991.1 | 2,887.3 |
Less: Accumulated depreciation | (1,832) | (1,613.2) |
Property, plant and equipment, net | 2,159.1 | 1,274.1 |
Accrued expenses: | ||
Accrued payroll | 155.3 | 95.1 |
Sales related reserves | 124.8 | 69.9 |
Acquisition consideration payable to seller (See Note 4) | 18.8 | 19.6 |
Other | 76.1 | 50.5 |
Accrued Liabilities, Current, Total | 405 | 246.2 |
Other Current Assets [Member] | Assets Held-for-sale [Member] | ||
Accrued expenses: | ||
Property, plant and equipment long lived | $ 34.1 | $ 0.3 |
Balance Sheet Information (Narr
Balance Sheet Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation expense for property, plant and equipment | $ 239.6 | $ 201.7 | $ 183.6 |
Assets financed under capital leases included in total property, plant and equipment | $ 13 | $ 28.2 |
Balance Sheet Information (Warr
Balance Sheet Information (Warranty Reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Warranty Reserves [Roll Forward] | |||
Beginning Balance | $ 5.3 | $ 5.5 | $ 6 |
Provision | 6.3 | 2.7 | 2.7 |
Usage | (10.8) | (2.9) | (3.2) |
Warranty reserves from acquired businesses | 8 | ||
Ending Balance | $ 8.8 | $ 5.3 | $ 5.5 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Dec. 31, 2016 | Nov. 17, 2016 | Dec. 31, 2015 | Jun. 08, 2015 |
Debt Instrument [Line Items] | ||||
Gross long-term debt, including current maturities | $ 3,806,800,000 | $ 1,515,800,000 | ||
Capital lease obligations | 130,700,000 | |||
Less: Debt discount | (111,400,000) | (107,500,000) | ||
Less: Debt issuance costs | (73,100,000) | (14,400,000) | ||
Net long-term debt, including current maturities | 3,622,300,000 | 1,393,900,000 | ||
Less: Current maturities | (553,800,000) | (543,400,000) | ||
Net long-term debt | 3,068,500,000 | 850,500,000 | ||
Revolving Credit Facility due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross long-term debt, including current maturities | 0 | 0 | ||
Less: Debt issuance costs | $ (2,100,000) | |||
Term Loan B Facility due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 4.02% | |||
Gross long-term debt, including current maturities | $ 2,394,000,000 | 0 | ||
Less: Debt discount | (29,900,000) | 0 | ||
Less: Debt issuance costs | $ (61,800,000) | 0 | ||
2.625% Notes, Series B [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.625% | 2.625% | ||
Gross long-term debt, including current maturities | $ 356,400,000 | 356,900,000 | ||
Less: Debt discount | 0 | (7,300,000) | ||
Less: Debt issuance costs | $ 0 | $ (500,000) | ||
Note payable to SMBC due 2016 through 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.75% | 2.36% | ||
Gross long-term debt, including current maturities | $ 160,400,000 | $ 198,200,000 | ||
U.S. real estate mortgages payable monthly through 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 3.12% | 3.35% | ||
Gross long-term debt, including current maturities | $ 38,900,000 | $ 50,000,000 | ||
Philippine term loans due 2016 through 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.88% | 2.32% | ||
Gross long-term debt, including current maturities | $ 44,100,000 | $ 50,000,000 | ||
Loan with Singapore bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.01% | 1.67% | ||
Gross long-term debt, including current maturities | $ 25,000,000 | $ 30,000,000 | ||
Loan with Hong Kong bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.01% | 1.67% | ||
Gross long-term debt, including current maturities | $ 25,000,000 | $ 25,000,000 | ||
Malaysia revolving line of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.45% | 2.05% | ||
Gross long-term debt, including current maturities | $ 25,000,000 | $ 25,000,000 | ||
Vietnam revolving line of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.43% | 1.89% | ||
Gross long-term debt, including current maturities | $ 17,000,000 | $ 20,800,000 | ||
Loans with Philippine bank due 2016 through 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 3.22% | 2.70% | ||
Gross long-term debt, including current maturities | $ 14,100,000 | $ 18,800,000 | ||
Canada revolving line of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 0.00% | 2.01% | ||
Gross long-term debt, including current maturities | $ 0 | $ 15,000,000 | ||
Loan with Japanese bank due 2016 through 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.36% | 2.01% | ||
Gross long-term debt, including current maturities | $ 3,400,000 | $ 4,200,000 | ||
Canada equipment financing payable monthly through 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 3.81% | |||
Gross long-term debt, including current maturities | $ 500,000 | 2,400,000 | ||
U.S. equipment financing payable monthly through 2016 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.40% | |||
Gross long-term debt, including current maturities | $ 0 | 1,300,000 | ||
Capital Lease Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital lease obligations | $ 13,000,000 | $ 28,200,000 | ||
1.00% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | ||
Less: Debt discount | $ (81,500,000) | $ (100,200,000) | ||
Less: Debt issuance costs | $ (11,300,000) | (13,900,000) | ||
1.00% Notes [Member] | Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | ||
Gross long-term debt, including current maturities | $ 690,000,000 | $ 690,000,000 | ||
Less: Debt issuance costs | $ (18,300,000) |
Long-Term Debt (Schedule of Ann
Long-Term Debt (Schedule of Annual Maturities Relating to Long-Term Debt) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 554.7 |
2,018 | 158.9 |
2,019 | 71.5 |
2,020 | 723.7 |
2,021 | 24 |
Thereafter | 2,274 |
Total | $ 3,806.8 |
Long-Term Debt (Narrative) (Fai
Long-Term Debt (Narrative) (Fairchild Transaction Financing) (Details) - USD ($) | Sep. 19, 2016 | Apr. 15, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||
Cash placed in escrow | $ 67,700,000 | $ 0 | $ 40,000,000 | ||
Deutsche Bank AG, New York Branch [Member] | Term Loan B Facility due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 2,200,000,000 | $ 2,400,000,000 | |||
Cash placed in escrow | 67,700,000 | ||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from lines of credit | $ 200,000,000 | ||||
Revolving Credit Facility [Member] | Deutsche Bank AG, New York Branch [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 600,000,000 |
Long-Term Debt (Narrative) (Ame
Long-Term Debt (Narrative) (Amendment of the New Credit Agreement) (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 15, 2016 |
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 3,806,800,000 | ||||
Proceeds from debt issuance | $ 2,586,900,000 | $ 816,500,000 | $ 346,400,000 | ||
Adjustable Rate Loans [Member] | Federal Funds Effective Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.50% | ||||
Adjustable Rate Loans [Member] | Adjusted LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.00% | ||||
Term Loan B Facility due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 2,400,000,000 | ||||
Excess cash flows, period from submission of compliance certificate for which payment is required (in days) | 10 days | ||||
Excess cash flows | $ 37,200,000 | ||||
Term Loan B Facility due 2023 [Member] | Eurocurrency Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from debt issuance | $ 200,000,000 | ||||
Quarterly principal payments, percentage of principal amount | 0.25% | ||||
Term Loan B Facility due 2023 [Member] | Eurocurrency Loans [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 3.25% | ||||
Term Loan B Facility due 2023 [Member] | Adjustable Rate Loans [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 2.25% | ||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.35% | ||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Eurocurrency Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | ||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Eurocurrency Loans [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 2.75% | 2.75% | |||
Revolving Credit Facility [Member] | Line of Credit [Member] | Adjustable Rate Loans [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.75% | 1.75% | |||
Deutsche Bank AG, New York Branch [Member] | Term Loan B Facility due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 2,400,000,000 | $ 2,200,000,000 | |||
Original issuance discount | $ 33,000,000 | ||||
Deutsche Bank AG, New York Branch [Member] | Term Loan B Facility due 2023 [Member] | Eurocurrency Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 3.25% | ||||
Deutsche Bank AG, New York Branch [Member] | Term Loan B Facility due 2023 [Member] | Adjustable Rate Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 2.25% |
Long-Term Debt (Narrative) (Deb
Long-Term Debt (Narrative) (Debt Extinguishment, Modification, and Issuance Costs) (Details) - USD ($) | May 01, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 |
Debt Instrument [Line Items] | |||||
Gain (loss) on debt extinguishment | $ (6,300,000) | $ (400,000) | $ 0 | ||
Debt issuance costs | 73,100,000 | 14,400,000 | |||
Term Loan B Facility due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Capitalized debt issuance costs | 66,600,000 | ||||
Lender fees | 22,000,000 | ||||
Debt issuance costs | 61,800,000 | $ 0 | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Capitalized debt issuance costs | 8,200,000 | ||||
Write off of unamortized debt issuance costs | 1,600,000 | ||||
Unamortized costs amortized over term of credit facility | 2,000,000 | ||||
Senior Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Write off of unamortized debt issuance costs | 400,000 | ||||
Credit facility, maximum borrowing capacity | $ 800,000,000 | ||||
Debt issuance costs | 2,100,000 | ||||
Senior Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | 15,000,000 | |||
Period of debt, in years | 5 years | ||||
Eurocurrency Loans [Member] | Term Loan B Facility due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt extinguishment charge | 4,700,000 | ||||
Write off of unamortized debt issuance costs | 300,000 | ||||
Third party fees | 4,300,000 | ||||
Lender fees | $ 100,000 |
Long-Term Debt (Narrative) (Not
Long-Term Debt (Narrative) (Note Payable to SMBC) (Details) - USD ($) $ in Millions | Jan. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 3,806.8 | $ 1,515.8 | |
SANYO Electric [Member] | |||
Debt Instrument [Line Items] | |||
Period of debt, in years | 7 years | ||
Principal amount of debt | $ 377.5 | ||
Principal payment of loan, quarterly | 9.4 | ||
Remaining balance of loan due in January 2018 | $ 122.7 | ||
Note payable to SMBC due 2016 through 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 160.4 | $ 198.2 | |
LIBOR [Member] | SANYO Electric [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.75% |
Long-Term Debt (Narrative) (A68
Long-Term Debt (Narrative) (Amended and Restated Senior Revolving Credit Facility) (Details) | May 01, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Jun. 08, 2015 | Apr. 30, 2015USD ($) |
Senior Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 800,000,000 | ||||
Ability to increase the size of the facility, in increments | $ 0 | ||||
Line of Credit, Increase, Additional Borrowings, Maximum | $ 500,000,000 | ||||
Credit agreement financial covenants, maximum total leverage ratio | 3.75 | ||||
Credit agreement financial covenants, minimum interest coverage ratio | 3.50 | ||||
Senior Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 15,000,000 | |||
Period of debt, in years | 5 years | ||||
Ability to increase the size of the facility, in increments | 10,000,000 | ||||
Senior Revolving Credit Facility [Member] | Swingline Loans For Short Term Borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | 15,000,000 | ||||
Senior Revolving Credit Facility [Member] | Foreign Currency Sublimit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 75,000,000 | ||||
1.00% Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | |||
1.00% Notes [Member] | Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% |
Long-Term Debt (Narrative) (Des
Long-Term Debt (Narrative) (Description of 1.00% Notes) (Details) $ / shares in Units, shares in Millions | Jun. 08, 2015USD ($) | Dec. 31, 2016USD ($)trading_day$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 73,100,000 | $ 14,400,000 | ||
Conversion option recorded to equity | 107,500,000 | |||
Share repurchased value | 348,200,000 | $ 121,200,000 | ||
Repayments of Long-term Debt | 313,800,000 | 495,500,000 | 90,600,000 | |
Conversion option, debt discount | (32,900,000) | |||
Payments for hedge | 0 | 108,900,000 | 0 | |
Proceeds from issuance of warrants | $ 0 | $ 52,000,000 | $ 0 | |
1.00% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | ||
Debt issuance costs | $ 11,300,000 | $ 13,900,000 | ||
Convertible Debt [Member] | 1.00% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt | $ 690,000,000 | |||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | ||
Debt issuance costs | $ 18,300,000 | |||
Debt issuance costs | 15,400,000 | |||
Conversion option recorded to equity | 2,900,000 | |||
Share repurchased value | $ 70,000,000 | |||
Repayments of Long-term Debt | $ 350,000,000 | |||
Debt instrument, convertible, conversion ratio (in shares) | 54.0643 | |||
Debt conversion, original debt amount | $ 1,000 | |||
Conversion price per share (in dollars per share) | $ / shares | $ 18.50 | |||
Redemption price percentage | 100.00% | |||
Conversion option, debt discount | $ 110,400,000 | |||
Effective interest rate (as a percent) | 4.29% | |||
Convertible note hedge | $ 56,900,000 | |||
Exercise price, warrants (in dollars per share) | $ / shares | $ 25.96 | |||
Proceeds from issuance of warrants | $ 52,000,000 | |||
Convertible Debt [Member] | 1.00% Notes [Member] | Embedded Derivative Financial Instruments [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price per share (in dollars per share) | $ / shares | $ 18.50 | |||
Number of convertible shares | shares | 37.3 | |||
Payments for hedge | $ 108,900,000 | |||
Debt Conversion One [Member] | Convertible Debt [Member] | 1.00% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days | trading_day | 20 | |||
Threshold consecutive trading days | 30 days | |||
Threshold percentage of stock price trigger (greater than or equal to) | 130.00% | |||
Debt Conversion Two [Member] | Convertible Debt [Member] | 1.00% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold consecutive trading days | 5 days | |||
Period immediately following consecutive trading days (in business days) | 5 days | |||
Ratio of trading price per 1000 principal amount (as a percent) (less than) | 0.98 |
Long-Term Debt (Narrative) (D70
Long-Term Debt (Narrative) (Description of 2.625% Notes, Series B) (Details) - USD ($) | Jan. 26, 2017 | Dec. 31, 2016 | Nov. 17, 2016 | Mar. 22, 2013 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 3,806,800,000 | |||
Equity amount of notes previously recorded to APIC reclassified to mezzanine equity | $ 32,900,000 | |||
2.625% Notes, Series B [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.625% | 2.625% | ||
Debt instrument, convertible, conversion ratio (in shares) | 95.2381 | |||
Debt conversion, original debt amount | $ 1,000 | |||
Conversion price per share (in dollars per share) | $ 10.50 | |||
Period immediately following consecutive trading days (in business days) | 5 days | |||
Threshold consecutive trading days | 5 days | |||
Percentage of product of closing sale price of common stock and conversion rate (less than) | 103.00% | |||
Long-term Debt | $ 356,900,000 | |||
Equity amount of notes previously recorded to APIC reclassified to mezzanine equity | $ (32,900,000) | |||
2.625% Notes, Series B [Member] | Debt Exchange - 2013 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 2.625% | 2.625% | ||
Subsequent Event [Member] | 2.625% Notes, Series B [Member] | ||||
Debt Instrument [Line Items] | ||||
Payment for redemption and conversion of debt | $ 445,000,000 |
Long-Term Debt (Narrative) (Phi
Long-Term Debt (Narrative) (Philippine Term Loans) (Details) - Secured Debt [Member] - Philippine term loans due 2016 through 2020 [Member] | 12 Months Ended | ||
Dec. 31, 2016payment | Oct. 02, 2015USD ($) | Jul. 03, 2015USD ($)loan | |
Debt Instrument [Line Items] | |||
Number of Loans | loan | 2 | ||
Principal amount of debt | $ 50,000,000 | ||
Credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Period of debt, in years | 5 years | ||
Number of quarterly payments | payment | 17 | ||
LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.00% |
Long-Term Debt (Narrative) (U.S
Long-Term Debt (Narrative) (U.S. Real Estate Mortgages) (Details) - Scotland [Member] - Loans Payable [Member] $ in Millions | Aug. 04, 2014USD ($) |
Debt Instrument [Line Items] | |
Principal amount of debt | $ 49.4 |
Debt instrument, interest rate (as a percent) | 3.12% |
Balloon payment | $ 26.7 |
Long-Term Debt (Narrative) (Mal
Long-Term Debt (Narrative) (Malaysia Revolving Line of Credit) (Details) - USD ($) | Sep. 23, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 26, 2014 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 3,806,800,000 | $ 1,515,800,000 | ||
Malaysia revolving line of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 25,000,000 | |||
Credit commitment outstanding | $ 25,000,000 | |||
Long-term debt | $ 25,000,000 | $ 25,000,000 | ||
Malaysia revolving line of credit [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 1.45% | |||
Line of credit, period in which borrowed amount in payable | 21 days |
Long-Term Debt (Narrative) (Vie
Long-Term Debt (Narrative) (Vietnam Revolving Line of Credit) (Details) - USD ($) | Sep. 03, 2014 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,806,800,000 | |
Vietnam revolving line of credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 25,000,000 | |
Long-term Debt | $ 17,000,000 | |
Vietnam revolving line of credit [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.45% | |
Line of credit, period in which borrowed amount in payable | 5 days |
Long-Term Debt (Narrative) (Cap
Long-Term Debt (Narrative) (Capital Lease Obligations) (Details) - Capital Lease Obligations [Member] $ in Millions | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
Capital lease obligations for machinery and equipment | $ 13 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate (as a percent) | 1.80% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate (as a percent) | 6.00% |
Earnings Per Share and Equity76
Earnings Per Share and Equity (Schedule of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||||||||||
Net income attributable to ON Semiconductor Corporation | $ 110.9 | $ 10.1 | $ 25.1 | $ 36 | $ 54.1 | $ 46.3 | $ 50.7 | $ 55.1 | $ 182.1 | $ 206.2 | $ 189.7 |
Basic weighted average common shares outstanding | 415.2 | 421.2 | 439.5 | ||||||||
Add: Incremental shares for: | |||||||||||
Dilutive effect of share-based awards (in shares) | 3.8 | 4.6 | 4 | ||||||||
Dilutive effect of convertible notes (in shares) | 1 | 2 | 0 | ||||||||
Diluted weighted average common shares outstanding | 420 | 427.8 | 443.5 | ||||||||
Net income per common share attributable to ON Semiconductor Corporation: | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.49 | $ 0.43 | ||||||||
Diluted (in dollars per share) | $ 0.26 | $ 0.02 | $ 0.06 | $ 0.09 | $ 0.13 | $ 0.11 | $ 0.12 | $ 0.13 | $ 0.43 | $ 0.48 | $ 0.43 |
Earnings Per Share and Equity77
Earnings Per Share and Equity (Narrative) (Details) - USD ($) | Aug. 01, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 17, 2016 | Jun. 08, 2015 | Dec. 01, 2014 | Mar. 22, 2013 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Anti-dilutive shares (in shares) | 1,700,000 | 1,300,000 | 6,100,000 | |||||
Amount remaining to be repurchased under the stock repurchase program | $ 628,200,000 | $ 628,200,000 | $ 976,000,000 | |||||
Number of repurchased shares | 0 | 30,400,000 | 13,900,000 | |||||
Payments of tax withholding for restricted shares | $ 12,300,000 | $ 14,700,000 | $ 9,100,000 | |||||
Shares reissued or retired | 0 | |||||||
Non-controlling interest in consolidated subsidiary | $ 21,800,000 | 23,700,000 | ||||||
Income attributable to non-controlling interests | 2,400,000 | 2,800,000 | 2,400,000 | |||||
Dividend to non-controlling shareholder of consolidated subsidiary | $ 4,300,000 | $ 0 | 4,200,000 | |||||
Noncontrolling Interest, increase from Acquisition of Noncontrolling Interest | $ 20,400,000 | |||||||
Leshan [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Ownership percentage | 80.00% | |||||||
Amount of non-controlling interest acquired in the period (as a percent) | 10.00% | |||||||
Treasury Stock [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Number of repurchased shares | 30,352,607 | 13,900,105 | ||||||
Shares withheld for payment of taxes (in shares) | (1,281,159) | (1,226,764) | (976,786) | |||||
Noncontrolling Interest [Member] | Leshan [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Non-controlling interest in consolidated subsidiary | $ 20,900,000 | |||||||
Income attributable to non-controlling interests | 2,400,000 | |||||||
Dividend to non-controlling shareholder of consolidated subsidiary | 4,200,000 | |||||||
Purchase price | 20,400,000 | |||||||
Noncontrolling Interest, increase from Acquisition of Noncontrolling Interest | 10,100,000 | |||||||
Noncontrolling interest, period increase | $ 10,300,000 | |||||||
2.625% Notes, Series B [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 2.625% | 2.625% | ||||||
Conversion price per share (in dollars per share) | $ 10.50 | |||||||
2012 Program [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Amount authorized under the stock repurchase program | $ 300,000,000 | |||||||
Period in which the company intends to repurchase the shares | 3 years | |||||||
Amount remaining to be repurchased under the stock repurchase program | $ 46,300,000 | |||||||
2014 Program [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Period in which the company intends to repurchase the shares | 4 years | |||||||
Amount remaining to be repurchased under the stock repurchase program | $ 1,000,000,000 | |||||||
Cash allocation policy, target percentage to return to shareholders | 80.00% | |||||||
Debt Exchange - 2013 [Member] | 2.625% Notes, Series B [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 2.625% | 2.625% | ||||||
1.00% Notes [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | ||||||
1.00% Notes [Member] | Convertible Debt [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | ||||||
Average price of common stock to exceed to include effect of additional potential shares | $ 25.96 | |||||||
Conversion price per share (in dollars per share) | $ 18.50 | |||||||
Number of repurchased shares | 5,400,000 |
Earnings Per Share and Equity78
Earnings Per Share and Equity (Schedule of Share Repurchase Program) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 08, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of repurchased shares | 0 | 30,400,000 | 13,900,000 | |
Beginning accrued share repurchases | $ 0 | $ 0 | $ 0.6 | |
Aggregate purchase price | 0 | 347.8 | 121 | |
Fees, commissions and other expenses | 0 | 0.4 | 0.2 | |
Less: ending accrued share repurchases | 0 | 0 | 0 | |
Total cash used for share repurchases | $ 0 | $ 348.2 | $ 121.8 | |
Weighted-average purchase price per share (in dollars per share) | $ 0 | $ 11.46 | $ 8.71 | |
Available for future purchases at period end | $ 628.2 | $ 628.2 | $ 976 | |
Share repurchased value | $ 348.2 | $ 121.2 | ||
1.00% Notes [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | ||
Convertible Debt [Member] | 1.00% Notes [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of repurchased shares | 5,400,000 | |||
Share repurchased value | $ 70 | |||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | $ 56.1 | $ 46.9 | $ 45.8 |
Related income tax benefits | 0 | 0 | 0 |
Share-based compensation expense, net of taxes | 56.1 | 46.9 | 45.8 |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 8 | 7.7 | 6.8 |
Research And Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 11.1 | 9.2 | 8.7 |
Selling And Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 9.8 | 8.5 | 8.1 |
General And Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | $ 27.2 | $ 21.5 | $ 22.2 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | May 20, 2015 | May 15, 2012 | Feb. 17, 2000 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 17, 2010 | May 31, 2013 | Mar. 23, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total Intrinsic value of stock options exercised | $ 6,800,000 | ||||||||
Cash received from exercise of stock options | 14,900,000 | $ 27,100,000 | $ 24,900,000 | ||||||
Proceeds from issuance of common stock under the ESPP | $ 15,000,000 | $ 14,600,000 | $ 10,000,000 | ||||||
Number of Shares, Granted (in shares) | 0 | 0 | 0 | ||||||
Pre-vesting forfeitures (as a percent) | 11.00% | 11.00% | 11.00% | ||||||
Period after termination in which options can be exercised (in days) | 90 days | ||||||||
Period after termination in which options can be exercised in case of death or disability (in years) | 1 year | ||||||||
Number of options vested and expected to vest (in shares) | 3,300,000 | ||||||||
Weighted average exercise price of options vested and expected to vest (in dollars per share) | $ 7.75 | ||||||||
Net stock options as a percentage of outstanding shares at beginning of period | (0.01%) | (0.02%) | |||||||
Share-based compensation expense before income taxes | $ 56,100,000 | $ 46,900,000 | $ 45,800,000 | ||||||
2000 Stock Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock reserved and available for grant (in shares) | 30,500,000 | ||||||||
Additional common shares reserved for issuance as a percentage of common stock outstanding | 3.00% | ||||||||
Term of grant agreement (in years) | 10 years | ||||||||
Amended And Restated Stock Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for issuance under the plan (in shares) | 59,100,000 | 33,000,000 | |||||||
Term of grant agreement (in years) | 7 years | ||||||||
Aggregate of common stock available for grant (in shares) | 19,800,000 | ||||||||
Employee Stock Purchase Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Cash received from exercise of stock options | $ 14,900,000 | ||||||||
Proceeds from issuance of common stock under the ESPP | 15,000,000 | ||||||||
Employee Stock Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized share-based compensation expense on non-vested stock awards | $ 100,000 | ||||||||
Recognition period for compensation expense (in years) | 7 months 6 days | ||||||||
Employee Stock Option [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period (in years) | 3 years | ||||||||
Employee Stock Option [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period (in years) | 4 years | ||||||||
Time Based Restricted Stock Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized share-based compensation expense on non-vested stock awards | $ 61,300,000 | ||||||||
Compensation expense recognized on restricted stock units | $ 31,700,000 | ||||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Recognition period for compensation expense (in years) | 1 year 9 months 18 days | ||||||||
Aggregate of common stock available for grant (in shares) | 4,900,000 | ||||||||
Restricted Stock [Member] | Director [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity awards granted in period (in shares) | 200,000 | ||||||||
Weighted average grant date fair value (In dollars per share) | $ 9.81 | ||||||||
Share-based compensation expense before income taxes | $ 1,800,000 | ||||||||
Employee Stock Purchase Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate of common stock available for grant (in shares) | 23,500,000 | 18,000,000 | |||||||
Maximum employee subscription rate for the ESPP (as a percent) | 10.00% | ||||||||
Discount rate from market value paid by participants for shares under the plan (as a percent) | 85.00% | ||||||||
Maximum annual amount of purchases per employee under the plan | $ 25,000 | ||||||||
Shares authorized for purchase per employee per quarter (in shares) | 500 | ||||||||
Maximum fair value of shares employee may purchase in a quarter | $ 6,250 | ||||||||
Shares issued pursuant to the employee stock purchase plan (in shares) | 1,800,000 | 1,700,000 | 1,300,000 | ||||||
Increase in number of shares available for grant | 5,500,000 | ||||||||
Restricted Stock Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized share-based compensation expense on non-vested stock awards | $ 45,200,000 | ||||||||
Pre-vesting forfeitures (as a percent) | 5.00% | 5.00% | 5.00% | ||||||
Equity awards granted in period (in shares) | 6,200,000 | ||||||||
Compensation expense recognized on restricted stock units | $ 49,400,000 | ||||||||
Weighted average grant date fair value (In dollars per share) | $ 9.50 | ||||||||
Restricted Stock Units [Member] | Officers And Employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity awards granted in period (in shares) | 2,000,000 | ||||||||
Restricted Stock Units [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period (in years) | 3 years | ||||||||
Performance Based Restricted Stock Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized share-based compensation expense on non-vested stock awards | $ 16,100,000 |
Share-Based Compensation (Sum81
Share-Based Compensation (Summary Of Stock Option Plans) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Stock Option Activity [Roll Forward] | |||
Number of Shares, Beginning (in shares) | 5,200,000 | ||
Number of Shares, Granted (in shares) | 0 | 0 | 0 |
Number of Shares, Exercised (in shares) | (1,800,000) | ||
Number of Shares, Canceled (in shares) | (100,000) | ||
Number of Shares, Ending (in shares) | 3,300,000 | 5,200,000 | |
Number of Shares, Exercisable (in shares) | 3,300,000 | ||
Weighted Average Exercise Price [Roll Forward] | |||
Weighted-Average Exercise Price, Beginning (in dollars per share) | $ 7.85 | ||
Weighted-Average Exercise Price. Granted (in dollars per share) | 0 | ||
Weighted-Average Exercise Price, Exercised (in dollars per share) | 8.03 | ||
Weighted-Average Exercise Price, Canceled (in dollars per share) | 8.53 | ||
Weighted-Average Exercise Price, Ending (in dollars per share) | 7.75 | $ 7.85 | |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 7.75 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted Average Remaining Contractual Term (in years), Outstanding | 1 year 9 months 11 days | ||
Weighted-Average Remaining Contractual Term (in years), Exercisable | 1 year 9 months 11 days | ||
Aggregate Intrinsic Value, Outstanding | $ 16.7 | ||
Aggregate Intrinsic Value, Exercisable | $ 16.7 |
Share-Based Compensation (Addit
Share-Based Compensation (Additional Information On Stock Options Outstanding) (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Less than $12.76 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, Less than $9.80 | $ 12.76 |
Number of Shares, Exercisable (in shares) | shares | 3.3 |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 7.75 |
Number of Shares, Unexercisable (in shares) | shares | 0 |
Weighted Average Exercise Price, Unexercisable (in dollars per share) | $ 0 |
Number of Shares, Total (in shares) | shares | 3.3 |
Weighted Average Exercise Price, Total (in dollars per share) | $ 7.75 |
Above $12.76 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, Less than $9.80 | 12.76 |
Exercise Prices, Above $9.80 | $ 12.76 |
Number of Shares, Exercisable (in shares) | shares | 0 |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 0 |
Number of Shares, Unexercisable (in shares) | shares | 0 |
Weighted Average Exercise Price, Unexercisable (in dollars per share) | $ 0 |
Number of Shares, Total (in shares) | shares | 0 |
Weighted Average Exercise Price, Total (in dollars per share) | $ 0 |
Total outstanding [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares, Exercisable (in shares) | shares | 3.3 |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 7.75 |
Number of Shares, Unexercisable (in shares) | shares | 0 |
Weighted Average Exercise Price, Unexercisable (in dollars per share) | $ 0 |
Number of Shares, Total (in shares) | shares | 3.3 |
Weighted Average Exercise Price, Total (in dollars per share) | $ 7.75 |
Share-Based Compensation (Sum83
Share-Based Compensation (Summary Of Restricted Stock Units Transactions) (Details) - Restricted Stock Units [Member] shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Restricted Stock Activity [Roll Forward] | |
Nonvested shares of restricted stock units beginning (in shares) | shares | 8.5 |
Number of Shares, Granted (in shares) | shares | 6.2 |
Number of Shares, Achieved (in shares) | shares | 0 |
Number of Shares, Released (in shares) | shares | (4.3) |
Number of Shares, Canceled (in shares) | shares | (0.7) |
Nonvested shares of restricted stock units ending (in shares) | shares | 9.7 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Nonvested shares of restricted stock units beginning (in dollars per share) | $ / shares | $ 10.52 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 9.50 |
Weighted Average Grant Date Fair Value, Achieved (in dollars per share) | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares | 9.80 |
Weighted Average Grant Date Fair Value, Canceled (in dollars per share) | $ / shares | 11.75 |
Weighted Average Grant Date Fair Value, Nonvested shares of restricted stock units ending (in dollars per share) | $ / shares | $ 10.10 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | $ 0 | $ 0 | $ 6.6 |
Net actuarial gain (loss) | (10.6) | 5.2 | |
Total underfunded status | 102.1 | ||
Expected company contribution in the current period | $ 8.3 | ||
Employer contribution as percentage of employee contribution | 100.00% | ||
Percentage of employee contribution, basis for employer contribution | 4.00% | ||
United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Compensation expense recognized | $ 14 | 13.6 | 8.5 |
Foreign Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Compensation expense recognized | $ 8.9 | $ 3.1 | 3.2 |
Foreign Postretirement Benefit Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 18.00% | 18.00% | |
Foreign Postretirement Benefit Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 20.00% | 21.00% | |
Foreign Postretirement Benefit Plan [Member] | Corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 44.00% | 47.00% | |
Foreign Postretirement Benefit Plan [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 3.00% | 3.00% | |
Foreign Postretirement Benefit Plan [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 15.00% | 11.00% | |
YTD 2014 Voluntary Retirement Program [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 6.6 | ||
Net actuarial gain (loss) | $ (7.4) | ||
Fairchild [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued pension liability | $ 8.3 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Net Periodic Pension Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
Service cost | $ 9 | $ 8.4 | $ 9.3 |
Interest cost | 4.5 | 3.8 | 5.7 |
Expected return on plan assets | (3.9) | (3.5) | (3.4) |
Curtailment gain | 0 | 0 | (6.6) |
Actuarial and other (gain) loss | 10.1 | (5) | 12.3 |
Total net periodic pension cost | $ 19.7 | $ 3.7 | $ 17.3 |
Discount rate (as a percent) | 1.60% | 1.82% | 1.64% |
Expected return on plan assets (as a percent) | 3.20% | 2.46% | 2.25% |
Rate of compensation increase (as a percent) | 3.05% | 2.96% | 3.03% |
Employee Benefit Plans (Summa86
Employee Benefit Plans (Summary of Status Of Foreign Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in projected benefit obligation | |||
Projected benefit obligation at the beginning of the year | $ 234.4 | $ 241.8 | |
Service cost | 9 | 8.4 | $ 9.3 |
Interest cost | 4.5 | 3.8 | 5.7 |
Net actuarial (gain) loss | 10.6 | (5.2) | |
Acquired PBO from Fairchild | 17.4 | 0 | |
Benefits paid by plan assets | (4.9) | (3.8) | |
Benefits paid by the Company | (5.9) | (2.7) | |
Translation gain and other | (3.3) | (7.9) | |
Projected benefit obligation at the end of the year | 261.8 | 234.4 | 241.8 |
Accumulated benefit obligation at the end of the year | 222.4 | 198.2 | |
Change in plan assets | |||
Fair value of plan assets at the beginning of the year | 147.2 | 145.7 | |
Acquired assets from Fairchild | 9.1 | 0 | |
Actual return on plan assets | 4.4 | 3.3 | |
Benefits paid from plan assets | (4.9) | (3.8) | |
Employer contributions | 6.1 | 7.3 | |
Translation and other loss | (2.2) | (5.3) | |
Fair value of plan assets at the end of the year | 159.7 | 147.2 | $ 145.7 |
Plans with underfunded or non-funded projected benefit obligation | |||
Projected benefit obligation | 256.1 | 229.3 | |
Fair value of plan assets | 152.9 | 140.8 | |
Plans with underfunded or non-funded accumulated benefit obligation | |||
Accumulated benefit obligation | 138.9 | 158.1 | |
Fair value of plan assets | 63.7 | 95.8 | |
Amounts recognized in the balance sheet consist of | |||
Current liabilities | (0.1) | (0.1) | |
Non-current liabilities | (102) | (87.1) | |
Funded status | $ (102.1) | $ (87.2) |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value Measurement of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 159.7 | $ 147.2 | $ 145.7 |
Cash/Money Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4.9 | 4.6 | |
Foreign Government/Treasury Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 15.6 | 9 | |
Corporate Bonds, Debentures [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32 | 30.3 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 28.8 | 26.7 | |
Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 8.8 | 7.7 | |
Investment and Insurance Annuity Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 69.6 | 68.9 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 20.5 | 12.9 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash/Money Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4.9 | 4.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Government/Treasury Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 15.6 | 8.3 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Bonds, Debentures [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment and Insurance Annuity Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 92 | 86.7 | |
Significant Observable Inputs (Level 2) [Member] | Cash/Money Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) [Member] | Foreign Government/Treasury Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0.7 | |
Significant Observable Inputs (Level 2) [Member] | Corporate Bonds, Debentures [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32 | 29.7 | |
Significant Observable Inputs (Level 2) [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 28.8 | 26.7 | |
Significant Observable Inputs (Level 2) [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 8.8 | 7.7 | |
Significant Observable Inputs (Level 2) [Member] | Investment and Insurance Annuity Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 22.4 | 21.9 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 47.2 | 47.6 | 52.2 |
Significant Unobservable Inputs (Level 3) [Member] | Cash/Money Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government/Treasury Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds, Debentures [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0.6 | 0.7 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Investment and Insurance Annuity Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 47.2 | $ 47 | $ 51.5 |
Employee Benefit Plans (Activit
Employee Benefit Plans (Activity of Plan Assets With Fair Value Measurement Using Significant Unobservable Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | $ 147.2 | $ 145.7 |
Actual return on plan assets | 4.4 | 3.3 |
Foreign currency impact | (2.2) | (5.3) |
Fair value of plan assets at the end of the year | 159.7 | 147.2 |
Corporate Bonds, Debentures [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 30.3 | |
Fair value of plan assets at the end of the year | 32 | 30.3 |
Investment and Insurance Contacts [member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 68.9 | |
Fair value of plan assets at the end of the year | 69.6 | 68.9 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 47.6 | 52.2 |
Actual return on plan assets | 3.3 | (0.1) |
Purchase, sales and settlements | (1) | 0.6 |
Foreign currency impact | (2.7) | (5.1) |
Fair value of plan assets at the end of the year | 47.2 | 47.6 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds, Debentures [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 0.6 | 0.7 |
Actual return on plan assets | 0 | (0.1) |
Purchase, sales and settlements | (0.6) | 0 |
Foreign currency impact | 0 | 0 |
Fair value of plan assets at the end of the year | 0 | 0.6 |
Significant Unobservable Inputs (Level 3) [Member] | Investment and Insurance Contacts [member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 47 | 51.5 |
Actual return on plan assets | 3.3 | 0 |
Purchase, sales and settlements | (0.4) | 0.6 |
Foreign currency impact | (2.7) | (5.1) |
Fair value of plan assets at the end of the year | $ 47.2 | $ 47 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
2,017 | $ 3.8 |
2,018 | 4.9 |
2,019 | 5.6 |
2,020 | 7.3 |
2,021 | 10.8 |
Five years thereafter | 73.7 |
Total | $ 106.1 |
Commitments and Contingencies90
Commitments and Contingencies (Operating Leases Future Minimum Payments Receivable) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 37.6 |
2,018 | 26.5 |
2,019 | 17.9 |
2,020 | 13.5 |
2,021 | 9.8 |
Thereafter | 43.6 |
Total | $ 148.9 |
Commitments and Contingencies91
Commitments and Contingencies (Narrative) (Details) | Dec. 27, 2016patent | Nov. 01, 2016patent | Sep. 19, 2016facility | Aug. 11, 2016patent | Nov. 27, 2013USD ($) | Oct. 14, 2008claim | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($)patent | Nov. 30, 2014USD ($) | Mar. 31, 2014USD ($)patent | May 31, 2012patent | Apr. 30, 2012claim | Jan. 31, 2011USD ($) | Dec. 31, 2008USD ($) | Oct. 31, 2006claimproduct | Aug. 31, 2016patent | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)claim | Dec. 31, 2015USD ($)patent | Dec. 31, 2014USD ($) | Dec. 31, 2009patent | Dec. 31, 2008claim | Dec. 31, 2004USD ($)patent |
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Total rent expense | $ 31,100,000 | $ 27,700,000 | $ 22,700,000 | ||||||||||||||||||||
Availability under senior revolving credit facility | 15,000,000 | ||||||||||||||||||||||
Outstanding guarantees and letters of credit | 6,700,000 | ||||||||||||||||||||||
Guarantees related to capital lease obligations | 130,700,000 | ||||||||||||||||||||||
Long-term debt | $ 1,515,800,000 | 3,806,800,000 | 1,515,800,000 | ||||||||||||||||||||
Net carrying value | 3,806,800,000 | ||||||||||||||||||||||
Senior Revolving Credit Facility [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Long-term debt | 0 | 0 | 0 | ||||||||||||||||||||
Notes Payable to Banks [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Long-term debt | 198,200,000 | 160,400,000 | $ 198,200,000 | ||||||||||||||||||||
Letter of Credit [Member] | Senior Revolving Credit Facility [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Credit commitment outstanding | 0 | ||||||||||||||||||||||
Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Number of facilities acquired | facility | 2 | ||||||||||||||||||||||
Maximum remediation cost recoveries receivable | $ 150,000,000 | ||||||||||||||||||||||
ON Semi, SCI, and Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | patent | 6 | ||||||||||||||||||||||
Power Integrations, Inc. [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Number of outstanding proceedings | claim | 8 | ||||||||||||||||||||||
Power Integrations, Inc. [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Number of outstanding proceedings | claim | 5 | ||||||||||||||||||||||
Power Integrations, Inc., USPTO [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Number of outstanding proceedings | claim | 12 | ||||||||||||||||||||||
Power Integrations, Delaware, 2004 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Number of outstanding proceedings | claim | 7 | ||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | 2 | 4 | |||||||||||||||||||||
Loss contingency, number of products that infringed upon patents | product | 33 | ||||||||||||||||||||||
Litigation settlement, amount awarded to (against) entity | $ (12,200,000) | $ (6,100,000) | $ (34,000,000) | ||||||||||||||||||||
Power Integrations, Delaware, 2008 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | claim | 4 | 3 | |||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | claim | 2 | ||||||||||||||||||||||
Power Integrations, Northern District of California, 2009 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | patent | 3 | ||||||||||||||||||||||
Litigation settlement, amount awarded to (against) entity | (139,800,000) | $ (105,000,000) | |||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | patent | 2 | ||||||||||||||||||||||
Loss contingency, number of patents infringed upon | patent | 2 | ||||||||||||||||||||||
Gain contingency, number of patents not infringed upon | patent | 1 | ||||||||||||||||||||||
Litigation settlement, amount vacated | $ 105,000,000 | ||||||||||||||||||||||
Litigation settlement interest | $ 7,000,000 | ||||||||||||||||||||||
Power Integrations, Delaware, 2012 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | patent | 5 | ||||||||||||||||||||||
Litigation settlement, amount awarded to (against) entity | $ 2,400,000 | ||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | patent | 3 | ||||||||||||||||||||||
Power Integrations, Delaware, 2012 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Litigation settlement, amount awarded to (against) entity | $ (100,000) | ||||||||||||||||||||||
Loss contingency, number of patents infringed upon | patent | 1 | ||||||||||||||||||||||
Loss contingency, number of patents found not infringed | patent | 3 | ||||||||||||||||||||||
Power Integrations, Northern District of California, 2015 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | patent | 2 | ||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | patent | 4 | ||||||||||||||||||||||
Power Integrations, Arizona, 2016 [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | patent | 2 | 6 | |||||||||||||||||||||
Number of patents requiring declaratory judgment | patent | 3 | ||||||||||||||||||||||
Power Integrations, Northern District of California, 2016 [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | patent | 6 | ||||||||||||||||||||||
Power Integrations, Eastern District of Texas, 2016 [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | patent | 6 | ||||||||||||||||||||||
Acbel Polytech, Inc. [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, damages sought | $ 30,000,000 | ||||||||||||||||||||||
Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Business acquisition, maximum indemnification period | 6 years | ||||||||||||||||||||||
Minimum [Member] | Power Integrations, Inc. [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, estimate of possible loss | $ 4,000,000 | ||||||||||||||||||||||
Minimum [Member] | Power Integrations, Delaware, 2004 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Value of sales and imports of affected products | $ 500,000 | ||||||||||||||||||||||
Maximum [Member] | Power Integrations, Inc. [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Loss contingency, estimate of possible loss | $ 20,000,000 | ||||||||||||||||||||||
Maximum [Member] | Power Integrations, Delaware, 2004 [Member] | Fairchild [Member] | |||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||
Value of sales and imports of affected products | $ 750,000 |
Commitments and Contingencies92
Commitments and Contingencies (Future Minimum Purchase Obligations Under Non-cancelable Agreements) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 291.1 |
2,018 | 32.9 |
2,019 | 27.9 |
2,020 | 17.3 |
2,021 | 14.3 |
Thereafter | 19 |
Total | $ 402.5 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Liabilities: | ||
Contingent consideration | $ 18.8 | $ 19.6 |
Fair Value, Measurements, Recurring [Member] | ||
Liabilities: | ||
Contingent consideration | 4.5 | 5 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Contingent consideration | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Demand and time deposits [Member] | ||
Assets: | ||
Cash and cash equivalents | 67.2 | 9.5 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash and cash equivalents | 30.3 | 33.2 |
Fair Value, Measurements, Recurring [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Contingent consideration | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Observable Inputs (Level 2) [Member] | Demand and time deposits [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Contingent consideration | 4.5 | 5 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Demand and time deposits [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Liabilities: | ||
Contingent consideration | 4.5 | 5 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Demand and time deposits [Member] | ||
Assets: | ||
Cash and cash equivalents | 67.2 | 9.5 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Money Market Funds [Member] | ||
Assets: | ||
Cash and cash equivalents | $ 30.3 | 33.2 |
Cash Flow Hedging [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | |
Cash Flow Hedging [Member] | Fair Value, Measurements, Recurring [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Derivative liabilities | 0.2 | |
Cash Flow Hedging [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | |
Cash Flow Hedging [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Liabilities: | ||
Derivative liabilities | 0.2 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Derivative liabilities | 0.1 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 0.1 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 18,800,000 | $ 19,600,000 |
Cost method investments, fair value | 12,300,000 | 12,300,000 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 4,500,000 | 5,000,000 |
Non-financial Assets [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-financial assets | $ 0 | $ 0 |
Fair Value Measurements (Fair95
Fair Value Measurements (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion, Carrying Amount | $ 3,806.8 | $ 1,515.8 |
Convertible Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion, Carrying Amount | 953.6 | 925 |
Long-term debt, including current portion, Fair Value | 1,160.9 | 1,041.9 |
Long-term Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion, Carrying Amount | 2,616.3 | 386.9 |
Long-term debt, including current portion, Fair Value | $ 2,731.5 | $ 386.6 |
Fair Value Measurements (Fair96
Fair Value Measurements (Fair Value Measurements, Nonrecurring) (Details) - Fair Value, Measurements, Nonrecurring [Member] - Fair Value, Inputs, Level 3 [Member] - Changes Measurement [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment held for use or disposal (Level 3) | $ 0.5 | $ 0.2 | $ 6 |
Goodwill impairment (Level 3) | 0 | 0 | 8.7 |
IPRD (Level 3) | 2.2 | 3.8 | 0.9 |
Assets, Fair Value Disclosure | $ 2.7 | $ 4 | $ 15.6 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Effects of cash flow hedges | $ 0.1 | $ 3.4 | $ (1.7) |
Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Cost of Sales [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Effects of cash flow hedges | 0.2 | ||
Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative amount | 95.9 | 89.8 | |
Realized and unrealized foreign currency transaction gain (loss) | $ 0.7 | $ (1.5) | $ (3.1) |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Net Foreign Exchange Positions) (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments [Line Items] | ||
Buy (Sell) | $ (34.5) | $ (14) |
Notional Amount | 95.9 | 89.8 |
Euro [Member] | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | (25.4) | (17.5) |
Notional Amount | 25.4 | 17.5 |
Japanese Yen [Member] | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | (33.7) | (30) |
Notional Amount | 33.7 | 30 |
Malaysian Ringgit [Member] | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 0 | 7.1 |
Notional Amount | 0 | 7.1 |
Philippine Peso [Member] | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 15.8 | 13.7 |
Notional Amount | 15.8 | 13.7 |
Other currencies - Buy [Member] | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | (6.1) | 17.1 |
Notional Amount | 6.1 | 17.1 |
Other currencies - Sell [Member] | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 14.9 | (4.4) |
Notional Amount | $ 14.9 | $ 4.4 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes And Non-controlling Interests) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (287) | $ (102.7) | $ (56.2) |
Foreign | 467.6 | 322.5 | 248.1 |
Income before income taxes | $ 180.6 | $ 219.8 | $ 191.9 |
Income Taxes (Provision (Benefi
Income Taxes (Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ (0.1) | $ 0 | $ (1.5) |
State and local | 0.1 | 2 | 0 |
Foreign | 34.4 | 21.3 | 20.1 |
Current, Provision (benefit) for income taxes | 34.4 | 23.3 | 18.6 |
Deferred: | |||
Federal | 60.8 | 0.4 | (17.1) |
State and local | 0 | (1.4) | (2.9) |
Foreign | (99.1) | (11.5) | 1.2 |
Deferred, Provision (benefit) for income taxes | (38.3) | (12.5) | (18.8) |
Provision (benefit) for income taxes | $ (3.9) | $ 10.8 | $ (0.2) |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The U.S. Federal Statutory Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
State and local taxes, net of federal tax benefit (as a percent) | (3.60%) | (1.00%) | (0.50%) |
Impact of foreign operations (as a percent) | (8.10%) | (39.80%) | (33.90%) |
Reversal of prior years’ indefinite reinvestment assertion (as a percent) | 172.10% | 0.00% | 0.00% |
Dividend income from foreign subsidiaries (as a percent) | 0.20% | 85.50% | 13.00% |
Change in valuation allowance and related effects (as a percent) | (190.70%) | (75.30%) | (17.80%) |
Nondeductible acquisition costs (as a percent) | 1.90% | 0.10% | 0.90% |
Nondeductible share-based compensation costs (as a percent) | 0.70% | 0.90% | 2.10% |
Deferred tax liability for assets with indefinite useful lives (as a percent) | 0.00% | (0.50%) | 1.70% |
US federal R&D credit (as a percent) | (10.10%) | (0.00%) | (0.00%) |
Return to accrual (as a percent) | (0.50%) | (0.90%) | (0.50%) |
Other (as a percent) | 0.90% | 0.90% | (0.10%) |
Effective income tax rate (as a percent) | (2.20%) | 4.90% | (0.10%) |
Income Taxes (Tax Effects Of Te
Income Taxes (Tax Effects Of Temporary Differences) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Net operating loss and tax credit carryforwards | $ 978.1 | $ 692 |
Tax-deductible goodwill and amortizable intangibles | (57.1) | (35.9) |
Reserves and accruals | 51.7 | 25.2 |
Property, plant and equipment | (60.9) | 21.3 |
Inventories | 42.1 | 26.3 |
Undistributed earnings of foreign subsidiaries | (639.1) | 0 |
Share-based compensation | 14.3 | 14 |
Pension | 21.5 | 17.9 |
Debt financing costs | (40.8) | 0 |
Other | 14.3 | 2.1 |
Deferred tax assets and liabilities before valuation allowance | 324.1 | 762.9 |
Valuation allowance | (474.1) | (735.7) |
Net deferred tax liability | $ (150) | |
Net deferred tax asset | $ 27.2 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 19, 2016 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||||
Reversal of valuation allowance | $ 359.8 | $ 12.1 | $ 23.3 | ||
Income tax benefit | 3.9 | (10.8) | 0.2 | ||
Reversal of reserves and interest for potential liabilities | 1.9 | 4.3 | 4.6 | ||
Reversal of prior year reinvestment assertion | 310.8 | ||||
Income and withholding taxes, foreign | 43.5 | 24.4 | 19.8 | ||
New reserves and interest on existing reserves for potential liabilities, foreign | 3.5 | 4.4 | 4.6 | ||
Impact on deferred tax asset due to rate change | 1.6 | ||||
Deferred federal income tax expense (benefit), tax deductible goodwill | 3.3 | ||||
Balance of unrecognized tax benefit | 136.7 | 33.5 | 31.2 | $ 20.9 | |
Unrecognized tax position, that would affect the annual effective tax rate | 125.5 | ||||
Estimate of decrease in unrecognized tax positions | 3.8 | ||||
Interest and penalties recognized | 0.5 | 0.9 | 0.5 | ||
Accrued interest and penalties | 4.4 | 3.9 | $ 3.2 | ||
Foreign [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 1,078.8 | 1,000.5 | |||
Tax credit carryforwards | 50.5 | 34.3 | |||
Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 1,203.6 | 638.8 | |||
Tax credit carryforwards | 211.9 | 132.9 | |||
State [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 1,191.2 | 662.7 | |||
Tax credit carryforwards | 129 | $ 51.3 | |||
Stock Option Deductions [Member] | |||||
Income Taxes [Line Items] | |||||
Excess tax deductions not included in deferred tax assets | 194.5 | ||||
Fairchild [Member] | |||||
Income Taxes [Line Items] | |||||
Increase (decrease) in income tax expense | 310.8 | ||||
Reversal of valuation allowance | (267.9) | ||||
Fairchild [Member] | Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Capital loss carryforwards | $ 29 | ||||
Capital loss carryforwards expired | 26.2 | ||||
System Solutions Group [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax benefit | 89.4 | ||||
Japan [Member] | Foreign [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 287.9 |
Income Taxes (Activity For Unre
Income Taxes (Activity For Unrecognized Gross Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrecognized Gross Tax Benefits | |||
Balance at beginning of year | $ 33.5 | $ 31.2 | $ 20.9 |
Acquired balances | 86.9 | 0 | 0 |
Additions based on tax positions related to the current year | 4.6 | 9.2 | 9 |
Additions for tax positions of prior years | 13.7 | 3.4 | 5.3 |
Reductions for tax positions of prior years | (0.4) | (6.9) | (0.6) |
Lapse of statute | (1.6) | (3.3) | (3.4) |
Settlements | 0 | (0.1) | 0 |
Balance at end of year | $ 136.7 | $ 33.5 | $ 31.2 |
Changes in Accumulated Other105
Changes in Accumulated Other Comprehensive Loss (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), tax | $ 0 | $ 0 |
Changes in Accumulated Other106
Changes in Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | $ 1,608.2 | ||
Other comprehensive income (loss) prior to reclassifications | (7.7) | $ 11 | |
Amounts reclassified from accumulated other comprehensive loss | (0.2) | (11.8) | |
Net current period other comprehensive loss | (7.9) | (0.8) | $ 5.9 |
Balance, ending | 1,823.2 | 1,608.2 | |
Foreign currency translation adjustments | 0.2 | 0 | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | (42.2) | (42.5) | |
Other comprehensive income (loss) prior to reclassifications | (8) | 0.3 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Net current period other comprehensive loss | (8) | 0.3 | |
Balance, ending | (50.2) | (42.2) | (42.5) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | (0.1) | (3.5) | |
Other comprehensive income (loss) prior to reclassifications | 0.3 | 11.1 | |
Amounts reclassified from accumulated other comprehensive loss | (0.2) | (7.7) | |
Net current period other comprehensive loss | 0.1 | 3.4 | |
Balance, ending | 0 | (0.1) | (3.5) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | 0 | 4.5 | |
Other comprehensive income (loss) prior to reclassifications | 0 | (0.4) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | (4.1) | |
Net current period other comprehensive loss | 0 | (4.5) | |
Balance, ending | 0 | 0 | 4.5 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | (42.3) | (41.5) | |
Balance, ending | $ (50.2) | $ (42.3) | $ (41.5) |
Changes in Accumulated Other107
Changes in Accumulated Other Comprehensive Loss (Schedule of Reclassifications from Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of revenues | $ 2,610 | $ 2,302.6 | $ 2,076.9 |
Other income and expense | (0.6) | 7.7 | $ (4.4) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | 0.2 | (11.8) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of revenues | 0.2 | (7.7) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income and expense | $ 0 | $ (4.1) |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Cash Flow, Supplemental Disclosures and Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Non-cash financing activities: | |||
Debt issuance costs paid directly from escrow accounts | $ 46 | ||
Capital expenditures in accounts payable and other liabilities | 105.9 | $ 102.2 | $ 108.5 |
Equipment acquired or refinanced through capital leases | 0 | 12.5 | 14.5 |
Cash (received) paid for: | |||
Interest income | (4.5) | (1.1) | (1.5) |
Interest expense | 106.7 | 28.4 | 25.7 |
Income taxes | $ 27.3 | $ 20 | $ 18.1 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016segmentCustomer | Dec. 31, 2015Customer | Dec. 31, 2014Customer | |
Segment Reporting, Measurement Disclosures [Abstract] | |||
Number of operating segments | 3 | ||
Number of reportable segments | 3 | ||
Number of customers individually accounting for more than 10% of total revenue | Customer | 0 | 0 | 0 |
Segment Information (Segment In
Segment Information (Segment Information Of Revenues, Gross Profit And Operating Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues from external customers | $ 1,261 | $ 950.9 | $ 877.8 | $ 817.2 | $ 840.3 | $ 904.2 | $ 880.5 | $ 870.8 | $ 3,906.9 | $ 3,495.8 | $ 3,161.8 |
Segment gross profit | 1,391.8 | 1,209 | 1,118.3 | ||||||||
Power Solutions Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues from external customers | 1,708.6 | 1,409.9 | 1,423.5 | ||||||||
Segment gross profit | 566.3 | 428.7 | 446.8 | ||||||||
Analog Solutions Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues from external customers | 1,481.5 | 1,338.6 | 1,415.8 | ||||||||
Segment gross profit | 589 | 537.9 | 574.5 | ||||||||
Image Sensor Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues from external customers | 716.8 | 747.3 | 322.5 | ||||||||
Segment gross profit | $ 236.5 | $ 242.4 | $ 97 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Operating Profit (Loss) From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Gross profit for reportable segments | $ 1,391.8 | $ 1,209 | $ 1,118.3 | ||||||||
Gross profit | $ 384.5 | $ 329 | $ 307.9 | $ 275.5 | $ 279.9 | $ 308.5 | $ 304.4 | $ 300.4 | 1,296.9 | 1,193.2 | 1,084.9 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit for reportable segments | 1,391.8 | 1,209 | 1,118.3 | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other unallocated manufacturing costs | $ (94.9) | $ (15.8) | $ (33.4) |
Segment Information (Revenues B
Segment Information (Revenues By Geographic Location Including Local Sales And Exports) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,261 | $ 950.9 | $ 877.8 | $ 817.2 | $ 840.3 | $ 904.2 | $ 880.5 | $ 870.8 | $ 3,906.9 | $ 3,495.8 | $ 3,161.8 |
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 588.4 | 544.3 | 497 | ||||||||
United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 541.1 | 503.2 | 497.9 | ||||||||
Hong Kong [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,086.8 | 874.4 | 975.3 | ||||||||
Japan [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 334.5 | 281.7 | 293.1 | ||||||||
Singapore [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,110.4 | 1,120.7 | 786.5 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 245.7 | $ 171.5 | $ 112 |
Segment Information (Summary Of
Segment Information (Summary Of Property, Plant And Equipment By Geographic Location) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 2,159.1 | $ 1,274.1 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 548.1 | 326.2 |
Korea [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 385.9 | 0.2 |
Malaysia [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 224 | 226.5 |
Philippines [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 381.7 | 259.1 |
China [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 217.7 | 111 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 401.7 | $ 351.1 |
Supplementary Financial Info114
Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited) (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 1,261 | $ 950.9 | $ 877.8 | $ 817.2 | $ 840.3 | $ 904.2 | $ 880.5 | $ 870.8 | $ 3,906.9 | $ 3,495.8 | $ 3,161.8 |
Gross Profit (exclusive of the amortization of acquisition related intangible assets) | 384.5 | 329 | 307.9 | 275.5 | 279.9 | 308.5 | 304.4 | 300.4 | 1,296.9 | 1,193.2 | 1,084.9 |
Net income attributable to ON Semiconductor Corporation | $ 110.9 | $ 10.1 | $ 25.1 | $ 36 | $ 54.1 | $ 46.3 | $ 50.7 | $ 55.1 | $ 182.1 | $ 206.2 | $ 189.7 |
Diluted net income per common share attributable to ON Semiconductor Corporation (in dollars per share) | $ 0.26 | $ 0.02 | $ 0.06 | $ 0.09 | $ 0.13 | $ 0.11 | $ 0.12 | $ 0.13 | $ 0.43 | $ 0.48 | $ 0.43 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Jan. 11, 2017USD ($)derivative_instrument |
Interest Rate Swap [Member] | |
Subsequent Event [Line Items] | |
Number of interest rate derivatives held | derivative_instrument | 3 |
Interest Rate Swap Expiring December 29, 2017 [Member] | |
Subsequent Event [Line Items] | |
Notional Amount | $ 500,000,000 |
Interest Rate Swap Expiring December 29, 2018 [Member] | |
Subsequent Event [Line Items] | |
Notional Amount | 750,000,000 |
Interest Rate Swap Expiring December 29, 2019 [Member] | |
Subsequent Event [Line Items] | |
Notional Amount | $ 1,000,000,000 |
Schedule II - Valuation and 116
Schedule II - Valuation and Qualifying Accounts (Valuation and Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 6.2 | $ 1.6 | $ 1 |
Charged to Costs and Expenses | (2) | 3.7 | 0.5 |
Charged to Other Accounts | (2) | 0.9 | 0.1 |
Deductions/Write-offs | 0 | 0 | 0 |
Balance at End of Period | 2.2 | 6.2 | 1.6 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 735.7 | 977.5 | 1,301.3 |
Charged to Costs and Expenses | (356) | (242.5) | (239.2) |
Charged to Other Accounts | 94.4 | 0.7 | (84.6) |
Deductions/Write-offs | 0 | 0 | 0 |
Balance at End of Period | 474.1 | $ 735.7 | 977.5 |
Valuation Allowance of Deferred Tax Assets [Member] | Aptina [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Charged to Other Accounts | $ 15.8 | ||
Valuation Allowance of Deferred Tax Assets [Member] | Fairchild [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Charged to Other Accounts | $ 81.6 |