Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 29, 2018 | |
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, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 409,710,366 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 9,369,083,794 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 1,069.6 | $ 949.2 |
Receivables, net | 686 | 701.5 |
Inventories | 1,225.2 | 1,089.5 |
Other current assets | 187 | 193 |
Total current assets | 3,167.8 | 2,933.2 |
Property, plant and equipment, net | 2,549.6 | 2,279.1 |
Goodwill | 932.5 | 916.9 |
Intangible assets, net | 566.4 | 628.3 |
Deferred tax assets | 266.2 | 339.1 |
Other assets | 105.1 | 98.5 |
Total assets | 7,587.6 | 7,195.1 |
Liabilities, Non-Controlling Interest and Stockholders’ Equity | ||
Accounts payable | 671.7 | 548 |
Accrued expenses | 659.1 | 612.8 |
Current portion of long-term debt | 138.5 | 248.1 |
Total current liabilities | 1,469.3 | 1,408.9 |
Long-term debt | 2,627.6 | 2,703.7 |
Deferred tax liabilities | 54.8 | 55.1 |
Other long-term liabilities | 241.8 | 226.4 |
Total liabilities | 4,393.5 | 4,394.1 |
ON Semiconductor Corporation stockholders’ equity: | ||
Common stock ($0.01 par value, 1,250,000,000 shares authorized, 558,701,620 and 551,873,115 shares issued, 413,834,227 and 425,118,194 shares outstanding, respectively) | 5.6 | 5.5 |
Additional paid-in capital | 3,702.3 | 3,593.5 |
Accumulated other comprehensive loss | (37.9) | (40.6) |
Accumulated earnings | 979.6 | 351.5 |
Less: Treasury stock, at cost; 144,867,393 and 126,754,921 shares, respectively | (1,478) | (1,131.1) |
Total ON Semiconductor Corporation stockholders’ equity | 3,171.6 | 2,778.8 |
Non-controlling interest in consolidated subsidiary | 22.5 | 22.2 |
Total stockholders' equity | 3,194.1 | 2,801 |
Total liabilities and stockholders' equity | $ 7,587.6 | $ 7,195.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,250,000,000 | 1,250,000,000 |
Common stock, shares issued (in shares) | 558,701,620 | 551,873,115 |
Common stock, shares outstanding (in shares) | 413,834,227 | 425,118,194 |
Treasury stock, shares (in shares) | 144,867,393 | 126,754,921 |
Commitments and contingencies |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues [Abstract] | |||
Revenue | $ 5,878.3 | $ 5,543.1 | $ 3,906.9 |
Cost of revenue (exclusive of amortization shown below) | 3,639.6 | 3,507.5 | 2,606.4 |
Gross profit | 2,238.7 | 2,035.6 | 1,300.5 |
Operating expenses: | |||
Research and development | 650.7 | 594.7 | 446.8 |
Selling and marketing | 324.7 | 316.6 | 236.7 |
General and administrative | 293.3 | 285 | 230 |
Amortization of acquisition-related intangible assets | 111.7 | 123.8 | 104.8 |
Restructuring, asset impairments and other, net | 4.3 | 20.8 | 33.2 |
Goodwill and intangible asset impairment | 6.8 | 13.1 | 2.2 |
Total operating expenses | 1,391.5 | 1,354 | 1,053.7 |
Operating income | 847.2 | 681.6 | 246.8 |
Other income (expense), net: | |||
Interest expense | (128.2) | (141.2) | (145.3) |
Interest income | 6.1 | 3 | 4.5 |
Loss on debt refinancing and prepayment | (4.6) | (47.2) | (6.3) |
Gain on divestiture of business | 5 | 12.5 | 92.2 |
Licensing income | 36.6 | 47.6 | 0 |
Other expense | (7.1) | (8.8) | (11.3) |
Other income (expense), net | (92.2) | (134.1) | (66.2) |
Income before income taxes | 755 | 547.5 | 180.6 |
Income tax benefit (provision) | (125.1) | 265.5 | 3.9 |
Net income | 629.9 | 813 | 184.5 |
Less: Net income attributable to non-controlling interest | (2.5) | (2.3) | (2.4) |
Net income attributable to ON Semiconductor Corporation | 627.4 | 810.7 | 182.1 |
Comprehensive income, net of tax: | |||
Net income | 629.9 | 813 | 184.5 |
Foreign currency translation adjustments | 0.7 | 7 | (8) |
Effects of cash flow hedges | 2 | 2.6 | 0.1 |
Other comprehensive income (loss) | 2.7 | 9.6 | (7.9) |
Comprehensive income | 632.6 | 822.6 | 176.6 |
Comprehensive income attributable to non-controlling interest | (2.5) | (2.3) | (2.4) |
Comprehensive income attributable to ON Semiconductor Corporation | $ 630.1 | $ 820.3 | $ 174.2 |
Net income per common share attributable to ON Semiconductor Corporation: | |||
Basic (in dollars per share) | $ 1.48 | $ 1.92 | $ 0.44 |
Diluted (in dollars per share) | $ 1.44 | $ 1.89 | $ 0.43 |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | |||
Basic (in shares) | 423.8 | 421.9 | 415.2 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Diluted (in shares) | 435.9 | 428.3 | 420 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated (Deficit) Earnings | Treasury Stock | Non-Controlling Interest in Consolidated Subsidiary |
Balance, beginning (in shares) at Dec. 31, 2015 | 534,134,721 | (122,094,916) | |||||
Balance, beginning 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] | |||||||
Stock option exercises (in shares) | 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 ESPP | 15 | 15 | |||||
RSUs and stock grant awards issued (in shares) | 4,519,501 | ||||||
RSUs and stock grant awards issued | 0 | ||||||
Shares withheld for employee taxes on RSUs (in shares) | (1,281,159) | ||||||
Shares withheld for employee taxes on RSUs | (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, equity component to mezzanine equity | $ (32.9) | (32.9) | |||||
Dividend to non-controlling shareholder | (4.3) | (4.3) | |||||
Comprehensive (loss) income | 176.6 | (7.9) | 182.1 | 2.4 | |||
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises (in shares) | 2,213,859 | ||||||
Stock option exercises | 18 | $ 0 | 18 | ||||
Shares issued pursuant to the employee stock purchase plan (in shares) | 1,913,528 | ||||||
Shares issued pursuant to the ESPP | 23.6 | 23.6 | |||||
RSUs and stock grant awards issued (in shares) | 5,427,940 | ||||||
RSUs and stock grant awards issued | 0 | $ 0.1 | (0.1) | ||||
Shares withheld for employee taxes on RSUs (in shares) | (1,750,182) | ||||||
Shares withheld for employee taxes on RSUs | (28.1) | $ (28.1) | |||||
Share-based compensation expense | $ 69.8 | 69.8 | |||||
Repurchase of common stock (in shares) | (1,600,000) | (1,628,664) | |||||
Repurchase of common stock | $ (25) | $ (25) | |||||
Repayment of 2.625% Notes, Series B - Equity Portion | (55.7) | (55.7) | |||||
Dividend to non-controlling shareholder | (1.9) | (1.9) | |||||
Warrants and bond hedge, net | (59.5) | (59.5) | |||||
Issuance of convertible notes | 113.1 | 113.1 | |||||
Tax impact of 2023 convertible notes, warrants and bond hedge | 11 | 11 | |||||
Comprehensive (loss) income | 822.6 | 9.6 | 810.7 | 2.3 | |||
Balance, ending (in shares) at Dec. 31, 2017 | 551,873,115 | (126,754,921) | |||||
Balance, ending at Dec. 31, 2017 | $ 2,801 | $ 5.5 | 3,593.5 | (40.6) | 351.5 | $ (1,131.1) | 22.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock option exercises (in shares) | 800,000 | 794,165 | |||||
Stock option exercises | $ 5.7 | 5.7 | |||||
Shares issued pursuant to the employee stock purchase plan (in shares) | 1,516,012 | ||||||
Shares issued pursuant to the ESPP | 24.9 | 24.9 | |||||
RSUs and stock grant awards issued (in shares) | 4,518,328 | ||||||
RSUs and stock grant awards issued | 0 | $ 0.1 | (0.1) | ||||
Shares withheld for employee taxes on RSUs (in shares) | (1,343,961) | ||||||
Shares withheld for employee taxes on RSUs | (31.6) | $ (31.6) | |||||
Share-based compensation expense | $ 78.3 | 78.3 | |||||
Repurchase of common stock (in shares) | (16,800,000) | (16,768,511) | |||||
Repurchase of common stock | $ (315.3) | $ (315.3) | |||||
Dividend to non-controlling shareholder | (2.2) | (2.2) | |||||
Comprehensive (loss) income | 632.6 | 2.7 | 627.4 | 2.5 | |||
Balance, ending (in shares) at Dec. 31, 2018 | 558,701,620 | (144,867,393) | |||||
Balance, ending at Dec. 31, 2018 | $ 3,194.1 | $ 5.6 | $ 3,702.3 | $ (37.9) | $ 979.6 | $ (1,478) | $ 22.5 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) | Dec. 31, 2016 |
2.625% Notes | |
Debt instrument, interest rate (as a percent) | 2.625% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 629.9 | $ 813 | $ 184.5 |
Adjustments to reconcile net income to net cash provided by operating activities and other adjustments: | |||
Depreciation and amortization | 508.7 | 481.9 | 364.1 |
Loss on sale or disposal of fixed assets | 2.4 | 3.9 | 1.5 |
Gain on divestiture of business | (5) | (12.5) | (92.2) |
Loss on debt refinancing and prepayment | 4.6 | 47.2 | 6.3 |
Amortization of debt discount and issuance costs | 13.2 | 16 | 12 |
Payments for term debt modification | (1.1) | (3.8) | (26.4) |
Write-down of excess inventories | 55.7 | 67 | 66.2 |
Share-based compensation expense | 78.3 | 69.8 | 56.1 |
Non-cash interest on convertible notes | 36.1 | 30.8 | 26 |
Non-cash asset impairment charges | 2.4 | 7.9 | 0.5 |
Goodwill and intangible asset impairment charges | 6.8 | 13.1 | 2.2 |
Change in deferred taxes | 69.2 | (348.3) | (38.1) |
Other | (1.6) | 2.2 | (4.6) |
Changes in operating assets and liabilities (exclusive of the impact of acquisitions and divestitures): | |||
Receivables | (2.7) | (57.9) | 28.1 |
Inventories | (185.2) | (126.9) | (7.9) |
Other assets | (37.4) | (86) | (25) |
Accounts payable | 44.8 | 51.8 | 42.4 |
Accrued expenses | 56.5 | 211.1 | (15.3) |
Deferred income on sales to distributors | 0 | (109.8) | 0.1 |
Other long-term liabilities | (1.4) | 23.7 | 0.6 |
Net cash provided by operating activities | 1,274.2 | 1,094.2 | 581.1 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (514.8) | (387.5) | (210.7) |
Proceeds from sales of property, plant and equipment | 36.5 | 14.3 | 0.4 |
Deposits utilized (made) for purchases of property, plant and equipment | 4.1 | (8.2) | (2.2) |
Purchase of business, net of cash acquired | (70.9) | (0.8) | (2,284) |
Purchase of equity interest and assets, net of cash acquired | (24.6) | 0 | 0 |
Proceeds from divestiture of business, net of cash transferred | 8.4 | 20 | 104 |
Proceeds from repayment of note receivable | 10.2 | 0 | 0 |
Cash placed in escrow | 0 | 0 | (67.7) |
Cash received from escrow | 0 | 0 | 23.8 |
Other | 2.2 | (2.6) | 0 |
Net cash used in investing activities | (548.9) | (364.8) | (2,436.4) |
Cash flows from financing activities: | |||
Proceeds for the issuance of common stock under the ESPP | 25 | 23.6 | 15 |
Proceeds from exercise of stock options | 5.7 | 18 | 14.9 |
Payments of tax withholding for restricted shares | (31.6) | (28.1) | (12.3) |
Repurchase of common stock | (315.3) | (25) | 0 |
Proceeds from debt issuance | 15.3 | 1,106.2 | 2,586.9 |
Payment of debt issuance and other financing costs | 0 | 0 | (6.8) |
Repayment of long-term debt | (298.4) | (1,831.4) | (313.8) |
Purchase of convertible note hedges | 0 | (144.7) | 0 |
Proceeds from issuance of warrants | 0 | 85.2 | 0 |
Payment of capital lease obligations | (3.6) | (8.9) | (14.9) |
Payment of contingent consideration | 0 | (3.9) | 0 |
Dividend to non-controlling shareholder | (2.2) | (1.9) | (4.3) |
Net cash (used in) provided by financing activities | (605.1) | (810.9) | 2,264.7 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.3 | 2.3 | (0.8) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 120.5 | (79.2) | 408.6 |
Cash, cash equivalents and restricted cash, beginning of period (Note 18) | 966.6 | 1,045.8 | 637.2 |
Cash, cash equivalents and restricted cash, end of period (Note 18) | $ 1,087.1 | $ 966.6 | $ 1,045.8 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Note 1: Background and Basis of Presentation ON Semiconductor Corporation, together with its wholly and majority-owned subsidiaries (the “Company”), prepares its consolidated financial statements in accordance with GAAP. As of December 31, 2018, the Company was organized into three operating segments, which also represent its three reporting segments: the Power Solutions Group , the Analog Solutions Group and the Intelligent Sensing Group. Additional information about the Company's operating and reporting segments is included in Note 3: ''Revenue and Segment Information'' . During the year ended December 31, 2018, the Company adopted the provisions of ASU No 2017-07 - Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”) retrospectively, which required the net benefit cost to be split in the income statement resulting in the service cost component to be included in operating income while the other components, including the interest cost and the expected return on plan assets, are reported separately outside of operating income. The Company utilized the practical expedient to estimate the impact of ASU 2017-07 for the years ended December 31, 2017 and 2016 using the information previously disclosed in the notes to the consolidated financial statements in the 2017 Form 10-K. This resulted in the operating income increasing by $0.7 million and $10.7 million for the years ended December 31, 2017 and 2016, respectively, compared to the amounts previously disclosed, with offsetting impact to other expense. The service cost is allocated between the cost of revenue, research and development, selling and marketing and general and administrative line items, while the other components are included in other expense in the Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2018 , 2017 and 2016 . All dollar amounts are in millions, except per share amounts and unless otherwise noted. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2: Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of all wholly-owned and majority-owned subsidiaries over which the Company exercises control and, when applicable, entities in which the Company has a controlling financial interest or is the primary beneficiary. Investments in nonconsolidated affiliates that represent less than 20% of the related ownership interests and where the Company does not have the ability to exert significant influence are accounted for as cost method investments. All material intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with GAAP 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 revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) estimates of future payouts for customer incentives and estimates of amounts subject to allowances, returns and warranties; (ii) measurement of valuation allowances relating to inventories; (iii) fair values of share-based compensation and of financial instruments (including derivative financial instruments); and (iv) measurement of valuation allowances against deferred tax assets, evaluations of uncertain tax positions, and the impact of U.S. tax reform. Additionally, during periods where it becomes applicable, significant estimates will be used by management in determining the future cash flows used to assess and test for impairment of goodwill, indefinite-lived intangible assets and long-lived assets and in assumptions used in connection with business combinations. Actual results may differ from the estimates and assumptions used in the consolidated financial statements and related notes. 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. Inventories Inventories are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. 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 revenue 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 balance sheet 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, if applicable, 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 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 a reporting unit may not be recoverable.The Company’s divisions are one level below the operating segments, constituting individual businesses, at which level the Company’s segment management conducts regular reviews of the operating results. The Company's divisions, either individually or in a combination, constitute reporting units for purposes of allocating and testing goodwill. 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 exceeds 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 performs a quantitative goodwill impairment test to determine if goodwill is impaired. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. 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. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, goodwill is considered impaired and will be determined as the amount by which the reporting units carrying value exceeds its fair value, not to exceed the carrying amount of 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 revenue, gross profit, 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. Intangible Assets The Company's acquisitions have resulted in intangible assets consisting of values assigned to customer relationships, patents, developed technology, IPRD and trademarks. IPRD is considered an indefinite-lived intangible asset until the abandonment or completion of the associated research and development efforts. If abandoned, the assets would be impaired. If the activities are completed, a determination is made regarding the useful lives of such assets and methods of amortization. The Company is required to test its IPRD assets for impairment annually using the guidance for indefinite-lived intangible assets. An IPRD asset is considered to be impaired when the asset’s carrying amount is greater than its fair value. The Company's impairment evaluation consists of first assessing qualitative factors to determine whether events and circumstances indicate that it is more likely than not that the IPRD asset is impaired. If it is more likely than not that the asset is impaired, the Company calculates the fair value of the IPRD asset and records an impairment charge if the carrying amount exceeds fair value. The Company determines the fair value based on an income approach, which is calculated as the present value of the estimated future cash flows of the IPRD asset. The assumptions about estimated cash flows include factors such as future revenue, gross profit, operating expenses and industry trends. The Company can bypass the qualitative assessment for any asset in any period and proceed directly to the quantitative impairment test. The remaining intangible assets are considered long-lived assets and 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 RSUs under the Company's share-based compensation plans. Debt Issuance Costs Debt issuance costs for line-of-credit agreements, including the Company's Revolving Credit Facility, are capitalized and amortized over the term of the underlying agreements on a straight-line basis. 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 and Term Loan "B" Facility are recorded as a direct deduction from the carrying amount of the convertible notes and the Term Loan "B" Facility, consistent with debt discounts, and are amortized over their term using the effective interest method. Amortization of these debt issuance costs is included in interest expense. Revenue Recognition On January 1, 2018, as required, the Company adopted 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") (collectively, the “New Revenue Standard”). The Company adopted the New Revenue Standard using the modified retrospective method, applying the guidance to all open contracts, and recognized the cumulative effect adjustment of $2.1 million to retained earnings and accrued expenses. The comparative financial information has not been restated and continues to be presented under the accounting standards in effect for the respective periods. The Company applied the practical expedient and has not disclosed the revenue allocated to future shipments of partially completed contracts. In anticipation of the adoption of the New Revenue Standard, during the quarter ended March 31, 2017, the Company developed its internal systems, processes and controls to enable it to make the estimates required by the New Revenue Standard on sales to its distributors and was able to reliably estimate upfront the effects of returns and allowances and record revenue at the time of shipments to these distributors. Prior to this, the Company recognized revenue from distributors under the sell-through method as it did not have the ability to estimate the effects of returns and allowances. As a result of this change, the Company recognized an additional $155.1 million in revenue during the first quarter of 2017, which resulted in an increase of $59.0 million to income before income taxes. 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 product development agreements and manufacturing services provided to customers. The Company recognizes revenue when it satisfies a performance obligation in an amount reflecting the consideration to which it expects to be entitled. For sales agreements, the Company has identified the promise to transfer products, each of which is distinct, to be the performance obligation. For product development agreements, the Company has identified the completion of a service defined in the agreement to be the performance obligation. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue continues to be recognized following the transfer of control of the products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. Under the New Revenue Standard, revenue from certain product development agreements, which was previously deferred as delivered, is now recognized over time. During year ended December 31, 2018 , revenue increased by $4.6 million due to the impact of the adoption of the New Revenue Standard. Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do not require minimum purchase commitments. In the absence of a sales agreement, the Company’s standard terms and conditions apply. The Company considers the customer purchase orders, governed by sales agreements or the Company’s standard terms and conditions, to be the contract with the customer. The Company evaluates certain factors including the customer’s ability to pay (or credit risk). Most of the Company’s OEM customers negotiate pricing terms on an annual basis, distributors generally negotiate pricing terms on a quarterly basis, while the pricing terms for electronic manufacturer service providers are negotiated periodically during the year. Pricing terms on product development agreements are negotiated at the beginning of a project. The Company allocates the transaction price to each distinct product based on its relative stand-alone selling price. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. 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 and stock rotation provisions permitting limited levels of product returns. Sales to certain distributors, primarily those with ship and credit rights, can also be subject to price adjustment on certain products. Although payment terms vary, most distributor agreements require payment within 30 days. In addition, the Company offers cash discounts to certain customers for payments received within an agreed upon time, generally 10 days after shipment. The Company recognizes revenue when it satisfies a performance obligation. The Company recognizes revenue from sales agreements upon transferring control of a product to the customer. This typically occurs when products are shipped or delivered, depending on the delivery terms, or when products that are consigned at customer locations are consumed. The Company recognizes revenue from product development agreements over time based on the cost-to-cost method. Revenue recognized during the year ended December 31, 2018 for sales agreements and product development agreements was $5,849.0 million and $29.3 million , respectively. Sales returns and allowances are estimated based on historical experience. Provisions for discounts and rebates to customers, estimated returns and allowances, ship and credit claims and other adjustments are provided for in the same period the related revenue are recognized, and are netted against revenue. For returns, the Company recognizes a related asset for the right to recover returned products with a corresponding reduction to cost of goods sold. The Company records a reserve for cash discounts as a reduction to accounts receivable and a reduction to revenue, based on the experience with each customer. Frequently, the Company receives orders with multiple delivery dates that may extend across reporting periods. Since each delivery constitutes a performance obligation, the Company allocates the transaction price of the contract to each performance obligation based on the stand-alone selling price of the products. The Company invoices the customer for each delivery upon shipment and recognizes revenue in accordance with delivery terms. As scheduled delivery dates are within one year, revenue allocated to future shipments of partially completed contracts are not disclosed. The Company has elected to record freight and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost and include it in cost of revenue. Taxes assessed by government authorities on revenue-producing transactions, including value-added and excise taxes, are presented on a net basis (excluded from revenue) in the Consolidated Statements of Operations and Comprehensive Income. 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 of two years from the date of delivery, except in the case of image sensor products, which are warrantied for one year from the date of delivery. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with its sales and records them as a component of the cost of revenue. 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. Historically, the majority of the Company's Japanese subsidiaries utilized Japanese Yen as their functional currency. The assets and liabilities of these subsidiaries are translated at current exchange rates, while revenue 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. As a result of an analysis which took into account the economic indicators of these subsidiaries from a long-term perspective, the Company changed the functional currency for some of these subsidiaries from Japanese Yen to U.S. Dollars effective as of January 1, 2018. 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 ordinary course of business. Based on the 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 the 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. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | The Company is organized into three operating and reporting segments consisting of the Power Solutions Group, the Analog Solutions Group and the Intelligent Sensing Group. The Company does not allocate income taxes or interest expense to its operating segments as the operating segments are principally evaluated on revenue and 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. In addition to the operating and reporting segments, 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. Revenue and gross profit for the Company’s operating and reporting segments are as follows (in millions): Power Solutions Group Analog Solutions Group Intelligent Sensing Group Total For year ended December 31, 2018: Revenue from external customers $ 3,038.2 $ 2,071.2 $ 768.9 $ 5,878.3 Segment gross profit 1,110.1 878.3 317.1 2,305.5 For year ended December 31, 2017: Revenue from external customers $ 2,819.3 $ 1,950.9 $ 772.9 $ 5,543.1 Segment gross profit 959.8 817.8 302.6 2,080.2 For year ended December 31, 2016: Revenue from external customers $ 1,708.6 $ 1,481.5 $ 716.8 $ 3,906.9 Segment gross profit 567.5 590.2 237.7 1,395.4 Gross profit 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, 2018 2017 2016 Gross profit for reportable segments $ 2,305.5 $ 2,080.2 $ 1,395.4 Less: unallocated manufacturing costs (66.8 ) (44.6 ) (94.9 ) Consolidated gross profit $ 2,238.7 $ 2,035.6 $ 1,300.5 Revenue for the Company's operating and reporting segments disaggregated into geographic locations and sales channels are as follows (in millions): Year Ended December 31, 2018 Power Solutions Group Analog Solutions Group Intelligent Sensing Group Total Geographic Location Singapore $ 1,086.6 $ 704.2 $ 164.2 $ 1,955.0 Hong Kong 847.9 496.5 144.7 1,489.1 United Kingdom 488.5 319.8 138.2 946.5 United States 398.5 339.2 125.0 862.7 Other 216.7 211.5 196.8 625.0 Total $ 3,038.2 $ 2,071.2 $ 768.9 $ 5,878.3 Sales Channel Distributors $ 2,011.1 $ 1,066.4 $ 464.2 $ 3,541.7 OEM 846.8 860.7 263.4 1,970.9 Electronic Manufacturing Service Providers 180.3 144.1 41.3 365.7 Total $ 3,038.2 $ 2,071.2 $ 768.9 $ 5,878.3 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. 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 revenue 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. 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 operating and reporting segments. Property, plant and equipment, net by geographic location, are summarized as follows (in millions): As of December 31, 2018 2017 United States $ 616.9 $ 547.9 Philippines 474.5 439.5 Korea 383.1 380.5 China 248.4 246.0 Malaysia 229.1 230.0 Other 597.6 435.2 $ 2,549.6 $ 2,279.1 The following table illustrates the product technologies under each of the Company's reportable segments 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 Intelligent Sensing Group Analog products Analog products LSI products Discrete products ASIC products Sensors HD products ECL products IPM products Foundry products / services Memory products LSI products PIM products Standard logic products Sensors TMOS products Standard logic products TMOS products WBG products |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 4: Recent Accounting Pronouncements ASUs Adopted: New Revenue Standard The Company adopted the New Revenue Standard on a modified retrospective basis on January 1, 2018. The cumulative-effect adjustment related to the timing of revenue recognition on certain product development agreements recorded to beginning retained earnings and accrued expenses as of January 1, 2018, was $2.1 million . The Company expects the ongoing impact of the New Revenue Standard to be immaterial to the consolidated financial statements. ASU No. 2017-09 - Scope of Modification Accounting ("ASU 2017-09") In May 2017, the FASB issued ASU No. 2017-09 to reduce diversity in practice and provide clarity regarding existing guidance in ASC 718, “Stock Compensation.” The amendments clarify that an entity should apply modification accounting in response to a change in the terms and conditions of an entity’s share-based payment awards unless three newly specified criteria are met. The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted ASU 2017-09 during the first quarter of 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. ASU No 2017-07 The Company adopted ASU 2017-07 during the first quarter of 2018, applying the standard retrospectively to all periods presented. The adoption of this standard did not have a material impact on the current period or prior period consolidated financial statements. 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. The Company adopted ASU 2016-18 during the first quarter of 2018, applying the standard retrospectively to all periods presented. The adoption of this standard did not have a material impact on the current period or prior period consolidated financial statements. See Note 18: ''Supplemental Disclosures'' for further information on the adoption of ASU 2016-18. 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. The Company adopted ASU 2016-16 during the first quarter of 2018 and recorded the cumulative-effect adjustment of $1.4 million as a reduction to the beginning retained earnings. 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. The Company adopted ASU 2016-15 during the first quarter of 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. ASUs Pending Adoption: ASU No. 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12") In August 2017, the FASB issued ASU No. 2017-12 to better align hedge accounting with risk management strategies, and as a result, more hedging strategies will be eligible for hedge accounting. Public business entities will have until the end of the first quarter in which a hedge is designated to perform an initial assessment of a hedge’s effectiveness. After initial qualification, the new guidance permits a qualitative effectiveness assessment for certain hedges instead of a quantitative test if the company can reasonably support an expectation of high effectiveness throughout the term of the hedge. An initial quantitative test to establish that the hedge relationship is highly effective is still required. The amendments are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company does not anticipate the adoption of ASU 2017-12 will have a material impact on its consolidated financial statements. ASU No. 2016-02 - Leases (Topic 842) ("ASU 2016-02"), ASU No. 2018-10 - Codification improvements to Topic 842, Leases (“ASU 2018-10”), ASU No. 2018-11 - Leases (Topic 842) (“ASU 2018-11”) (collectively, the “New Leasing Standard”) In February 2016, the FASB issued ASU 2016-02, which amended the accounting treatment for leases. ASU 2016-02 requires that a lessee should recognize on its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. Lessees 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. In July 2018, the FASB issued ASU 2018-10 and ASU 2018-11. ASU 2018-10 provides certain areas for improvement in ASU 2016-02 and ASU 2018-11 provides an additional optional transition method by allowing entities to initially apply the New Leasing Standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The New Leasing Standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. The Company will adopt the standard beginning January 1, 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company currently plans to apply the package of practical expedients to leases that commenced before the effective date whereby we will elect to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The Company expects the adoption of this standard will result in the inclusion of a significant component of the Company's future minimum lease obligations, as disclosed in Note 13: ''Commitments and Contingencies'' on its Consolidated Balance Sheets, as right-of-use assets and lease liabilities with no material impact to its Consolidated Statements of Operations and Comprehensive Income. The Company is continuing to assess the potential impacts of the New Leasing Standard. We anticipate disclosing additional information, as necessary, to comply with the New Leasing Standard. |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Licensing Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Licensing Transactions | Note 5: Acquisitions, Divestitures and Licensing Transactions The Company pursues strategic acquisitions and divestitures from time to time to leverage its existing capabilities and further build its business. 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, 2018 and 2017 , the Company incurred acquisition and divestiture related costs of approximately $4.5 million and $3.2 million , respectively, which are included in operating expenses on the Company's Consolidated Statements of Operations and Comprehensive Income. 2018 Acquisition On May 8, 2018, the Company acquired 100% of the outstanding shares of SensL Technologies Ltd. ("SensL"), a company specializing in silicon photomultipliers, single photon avalanche diode and LiDAR sensing products for the automotive, medical, industrial and consumer markets, for $71.6 million , funded with cash on hand. This acquisition positions the Company to extend its products in automotive sensing applications for ADAS and autonomous driving by adding LiDAR capabilities to the Company’s existing capabilities in imaging and radar. The following table presents the allocation of the purchase price of SensL for the assets acquired and liabilities assumed based on their fair values (in millions): Purchase Price Allocation Current assets (including cash and cash equivalents of $0.7) $ 4.2 Property, plant and equipment and other non-current assets 1.8 Goodwill 18.9 Intangible assets (excluding IPRD) 31.4 IPRD 20.0 Total assets acquired 76.3 Current liabilities 0.7 Other non-current liabilities 4.0 Total liabilities assumed 4.7 Net assets acquired/purchase price $ 71.6 Acquired intangible assets of $31.4 million include developed technology of $30.0 million (which are estimated to have a seven year weighted-average useful life). The total weighted average amortization period for the acquired intangibles is seven years. IPRD assets are amortized over the estimated useful life of the assets upon successful completion of the related projects. The value assigned to IPRD was determined by estimating the net cash flows from the projects when completed and discounting the net cash flows to their present value using a discount rate of 30.0% . The cash flows from IPRD’s significant products are expected to commence in 2019. The acquisition produced $18.9 million of goodwill, which was allocated to the Intelligent Sensing Group. Goodwill is attributable to a combination of SensL’s assembled workforce, expectations regarding a more meaningful engagement by the customers due to the scale of the combined company and other product and operating synergies. Goodwill will not be amortized but instead tested for impairment at least annually (more frequently if certain indicators are present). Goodwill arising from the SensL acquisition is not deductible for tax purposes. Unaudited pro-forma consolidated results of operations for the years ended December 31, 2018 and 2017 are not included considering the significance of the acquisition to the results of the Company. 2018 Divestiture On June 25, 2018, the Company divested the transient voltage suppressing diodes business it acquired from Fairchild to TSC America, Inc. for $5.6 million in cash and recorded a gain of $4.6 million after writing off the carrying values of the assets and liabilities disposed. There were certain other immaterial transactions resulting in a total gain of $5.0 million during the year ended December 31, 2018. Licensing Transactions During 2016 and 2017, the Company entered into an Asset Purchase Agreement with Huaian Imaging Device Manufacturer Corporation (“HIDM”) pursuant to which the Company received $52.5 million in cash in 2017 and provided perpetual, non-exclusive licenses relating to certain technologies to HIDM. Of this amount, $10.0 million was recorded as deferred licensing income to be recognized in the period in which certain qualification requirements of the technologies are achieved (or refunded to HIDM, if such qualification did not occur by June 21, 2018). Prior to this date, the Company achieved such qualification requirements for the technologies transferred and recognized $10.0 million as licensing income. On November 29, 2017, the Company and QST Co. Ltd (“QST”) entered into an IP license and technology transfer agreement (“IP Agreement”) to grant QST patent licenses and IP rights to certain of the Company’s technologies. Pursuant to the IP Agreement, QST receives perpetual, worldwide, nonexclusive and nontransferable patents licenses and IP rights upon the payment of license fees of $13.0 million and other fees of $8.5 million in its entirety. Such amounts were paid by QST during the years ended December 31, 2017 and 2018. As a result, the Company recognized licensing income of $22.7 million relating to licensing and other fees and certain other aspects of the transaction during the year ended December 31, 2018. The Company also recognized certain immaterial amounts of licensing income relating to other transactions during the year ended December 31, 2018. 2017 Divestiture On September 29, 2017, the Company entered into a Share Purchase Agreement with mCube, whereby mCube acquired 100% of the outstanding shares of Xsens Holding B.V., a wholly owned subsidiary of the Company, for cash consideration of $26.0 million (collectively, the “Xsens Transaction”). Twenty percent of the consideration, or $5.2 million , was deposited into an escrow account and the remaining $20.8 million was received on September 29, 2017. There were no indemnification liabilities identified, and the escrow amount has been considered as part of the consideration in calculating the gain and included in other current assets in the Consolidated Balance Sheet as of December 31, 2018 . The escrow amount will be released to the Company upon satisfaction of any pending claims eighteen months after the date on which the Xsens Transaction closed. The Company recorded a gain of $12.5 million after writing off the carrying value of the assets and liabilities sold of $7.0 million and goodwill of $6.5 million . 2016 Acquisition On September 19, 2016, the Company acquired 100% of 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 9: ''Long-Term Debt'' for additional information. For the period from September 19, 2016 to December 31, 2016, the Company recognized revenue of $411.5 million and a 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 for the acquisition of Fairchild for the assets acquired and liabilities assumed based on their fair values (in millions): Purchase Price Allocation Cash and cash equivalents $ 255.0 Receivables 227.3 Inventories 342.3 Other current assets 61.0 Property, plant and equipment 925.8 Goodwill 656.1 Intangible assets (excluding IPRD) 413.6 IPRD 134.2 Other non-current assets 13.1 Total assets acquired 3,028.4 Accounts payable 79.4 Other current liabilities 168.1 Deferred tax liabilities 213.5 Other non-current liabilities 35.2 Total liabilities assumed 496.2 Net assets acquired/purchase price $ 2,532.2 Acquired intangible assets included $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 were expected to commence from 2017 and beyond. Other acquired intangible assets of $413.6 million consisted of 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 $290.0 million to the Analog Solutions Group. Goodwill is attributable to a combination of Fairchild's assembled workforce, expectations regarding a more meaningful engagement with 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 from the Fairchild acquisition. These costs are recorded in general and administrative expense in the Consolidated Statements of Operations and Comprehensive Income. See Note 13: ''Commitments and Contingencies'' for information on contingent liabilities assumed from the acquisition of Fairchild. Pro-Forma Results of Operations Unaudited pro-forma consolidated results of operations for the years ended December 31, 2018 and 2017 are not required because the results of Fairchild are included in the Consolidated Statements of Operations and Comprehensive Income for these periods. The following unaudited pro-forma consolidated results of operations for the year ended December 31, 2016 has 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 (in millions, except per share data): Year Ended December 31, 2016 Revenue $ 4,912.8 Net Income 196.6 Net income attributable to ON Semiconductor Corporation 194.2 Net income per common share attributable to ON Semiconductor Corporation: Basic 0.47 Diluted 0.46 2016 Divestiture 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 IGBT business. In satisfaction of this requirement, on August 29, 2016, the Company sold the ignition IGBT business to 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 on divestiture 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 which has been recognized in the Consolidated Statements of Operations and Comprehensive Income through December 31, 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6: 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. The Company performed qualitative assessments for the annual impairment analysis during the fourth quarters of 2018 and 2017 and concluded that it is more likely than not that the fair value of its reporting units exceed their carrying amounts and a quantitative impairment test was not required. The following table summarizes goodwill by relevant reportable segment (in millions): As of December 31, 2018 As of December 31, 2017 Goodwill Accumulated Impairment Losses Carrying Value Goodwill Accumulated Impairment Losses Carrying Value Operating Segment Analog Solutions Group $ 836.7 $ (418.9 ) $ 417.8 $ 836.7 $ (418.9 ) $ 417.8 Intelligent Sensing Group 114.4 — 114.4 95.5 — 95.5 Power Solutions Group 432.2 (31.9 ) 400.3 432.2 (28.6 ) 403.6 Total $ 1,383.3 $ (450.8 ) $ 932.5 $ 1,364.4 $ (447.5 ) $ 916.9 The following table summarizes the change in goodwill (in millions): Net balance as of December 31, 2016 $ 924.7 Measurement period adjustment (1.3 ) Divestiture of business (6.5 ) Net balance as of December 31, 2017 916.9 Addition due to business combination 18.9 Goodwill Impairment (3.3 ) Net balance as of December 31, 2018 $ 932.5 The goodwill impairment charge of $3.3 million in 2018 was the result of the licensing transaction with QST and represented the entire goodwill assigned to a reporting unit within the Power Solutions Group. The measurement period adjustment of $1.3 million in 2017 was related to an immaterial acquisition that occurred on December 29, 2016. Intangible Assets Intangible assets, net, were as follows (in millions): As of December 31, 2018 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Customer relationships $ 556.7 $ (359.1 ) $ (20.1 ) $ 177.5 Developed technology 698.0 (356.4 ) (2.6 ) 339.0 IPRD 64.1 — (22.5 ) 41.6 Other intangibles 82.3 (58.8 ) (15.2 ) 8.3 Total intangible assets $ 1,401.1 $ (774.3 ) $ (60.4 ) $ 566.4 As of December 31, 2017 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Customer relationships $ 555.9 $ (328.5 ) $ (20.1 ) $ 207.3 Developed technology 657.6 (278.2 ) (2.6 ) 376.8 IPRD 54.5 — (19.0 ) 35.5 Other intangibles 79.8 (55.9 ) (15.2 ) 8.7 Total intangible assets $ 1,347.8 $ (662.6 ) $ (56.9 ) $ 628.3 During the year ended December 31, 2018, the Company determined that the value of one of its IPRD projects under the Intelligent Sensing Group was impaired and recorded a charge of $3.5 million , and the Company also completed certain of its IPRD projects resulting in the reclassification of $10.4 million from IPRD to developed technology. During the year ended December 31, 2017, the Company canceled certain of its previously capitalized IPRD projects under the Power Solutions Group and Analog Solutions Group and recorded impairment losses of $7.7 million . Additionally, the Company determined that the value of certain of its projects under the Analog Solutions Group were impaired and recorded charges of $5.4 million . During the year ended December 31, 2017, the Company also completed certain of its IPRD projects, resulting in the reclassification of $99.4 million from IPRD to developed technology and, disposed of $8.7 million of intangible assets as part of the Xsens Transaction. During the year ended December 31, 2016, the Company canceled certain of its previously capitalized IPRD projects under the Intelligent Sensing Group and recorded impairment losses of $2.2 million , and the Company also completed certain of its IPRD projects resulting in the reclassification of $21.6 million from IPRD to developed technology. Amortization expense for intangible assets for the years ended December 31, 2018 , 2017 and 2016 amounted to $111.7 million , $123.8 million and $104.8 million , respectively. Amortization expense for intangible assets, with the exception of the $41.6 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 2019 $ 106.2 2020 95.8 2021 78.7 2022 63.8 2023 47.0 Thereafter 133.3 Total estimated amortization expense $ 524.8 |
Restructuring, Asset Impairment
Restructuring, Asset Impairments and Other, Net | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring, Asset Impairments and Other, Net | Note 7: 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, 2018 , 2017 and 2016 is as follows (in millions): Restructuring Asset Impairments (1) Other (2) Total Year Ended December 31, 2018 Other $ 3.9 $ 4.6 $ (4.2 ) $ 4.3 Total $ 3.9 $ 4.6 $ (4.2 ) $ 4.3 Year Ended December 31, 2017 Post-Fairchild acquisition restructuring costs $ 9.7 $ — $ — $ 9.7 Manufacturing relocation (2.1 ) — — (2.1 ) Former System Solutions Group segment voluntary workforce reduction 2.2 — — 2.2 Other 0.1 7.3 3.6 11.0 Total $ 9.9 $ 7.3 $ 3.6 $ 20.8 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 (0.2 ) — — (0.2 ) Total $ 33.2 $ — $ — $ 33.2 _______________________ (1) Includes impairment charges of $7.3 million for the year ended December 31, 2017, to write down certain held-for-sale assets to fair value less costs to sell. (2) Includes gain on sale of certain held-for-sale assets for the year ended December 31, 2018 and charges related to other facility closures and asset disposal activities for the year ended December 31, 2017. Summary of changes in accrued restructuring charges as follows (in millions): Estimated employee separation charges Estimated costs to exit Total Balance as of December 31, 2016 $ 8.1 $ — $ 8.1 Charges 7.6 2.3 9.9 Usage (13.8 ) (2.1 ) (15.9 ) Balance as of December 31, 2017 $ 1.9 $ 0.2 $ 2.1 Charges 3.9 — 3.9 Usage (5.5 ) — (5.5 ) Balance as of December 31, 2018 $ 0.3 $ 0.2 $ 0.5 The Company did not have any significant restructuring activities during the year ended December 31, 2018 . Activity related to the Company’s significant restructuring programs that were initiated during 2016 or 2017 was as follows: Post-Fairchild Acquisition Restructuring Costs Following the acquisition of Fairchild, the Company approved the implementation of a cost-reduction plan, which eliminated approximately 225 positions from its workforce as a result of redundancies. Restructuring charges of $25.7 million were recorded during the year ended December 31, 2016. During the year ended December 31, 2017, an additional 111 positions were eliminated, totaling 336 pursuant to the plan. As of December 31, 2017, a total of 331 employees had exited, and the remaining five exited during 2018. The restructuring expense attributable to severance and termination benefits was $7.9 million and to other exit costs was $1.8 million for the year ended December 31, 2017. The total expense for this program amounted to $35.4 million and the Company paid $13.4 million and $20.2 million during the years ended December 31, 2017 and 2016, respectively. Accrued severance benefits for this program was $1.8 million as of December 31, 2017, of which $1.3 million was paid during the year ended December 31, 2018 . Manufacturing Relocation During March 2016, the Company announced a plan to relocate certain of its manufacturing operations to another existing location. During the quarter ended March 31, 2017, the Company made the decision to cancel the plans for relocation and announced all workforce would remain intact. As a result, the accrued balance of $2.1 million was released as of March 31, 2017. Former System Solutions Group Segment Voluntary Workforce Reduction During the quarter ended June 30, 2017, the Company announced a voluntary resignation program for the former System Solutions Group. A total of 36 employees had signed employee separation agreements as of December 31, 2017 and the related expense for the year was $2.2 million , of which $2.0 million had been paid as of December 31, 2017. The remaining amounts were paid during 2018. During March 2016, the Company had announced a voluntary resignation program for the former System Solutions Group. A total of 75 employees volunteered and signed employee separation agreements. The total expense of the plan was $5.3 million and all employees exited and were paid during the 2016. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Information | Note 8: Balance Sheet Information Certain significant amounts included in the Company's Consolidated Balance Sheets consist of the following (in millions): As of December 31, 2018 December 31, 2017 Inventories: Raw materials $ 137.3 $ 117.7 Work in process 760.7 660.8 Finished goods 327.2 311.0 $ 1,225.2 $ 1,089.5 Property, plant and equipment, net: Land $ 125.5 $ 148.4 Buildings 820.4 744.0 Machinery and equipment 3,980.2 3,454.6 Property, plant and equipment, gross 4,926.1 4,347.0 Less: Accumulated depreciation (2,376.5 ) (2,067.9 ) $ 2,549.6 $ 2,279.1 Accrued expenses: Accrued payroll and related benefits $ 240.8 $ 201.8 Sales related reserves 294.8 280.0 Income taxes payable 38.2 29.9 Other 85.3 101.1 $ 659.1 $ 612.8 Assets classified as held-for-sale, consisting primarily of properties, 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, 2018 and 2017 was $1.4 million and $5.3 million , respectively, and is reported as other current assets on the Company’s Consolidated Balance Sheet. The Company sold the assets held-for-sale at December 31, 2017 in January 2018 for $5.5 million . Depreciation expense for property, plant and equipment, including amortization of capital leases, totaled $359.3 million , $325.2 million and $239.6 million for 2018 , 2017 and 2016 , respectively. As of December 31, 2018 and 2017 , total property, plant and equipment included $0.9 million and $4.2 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 are as follows (in millions): 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 Provision 6.8 Usage (7.6 ) Balance as of December 31, 2017 8.0 Provision 0.4 Usage (3.2 ) Balance as of December 31, 2018 $ 5.2 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9: Long-Term Debt The Company's long-term debt consists of the following (annualized interest rates, in millions): As of December 31, 2018 December 31, 2017 Amended Credit Agreement: Revolving Credit Facility due 2021, interest payable monthly at 3.77% and 3.07%, respectively $ 400.0 $ 400.0 Term Loan “B” Facility due 2023, interest payable monthly at 4.27% and 3.57%, respectively 1,134.5 1,204.5 1.00% Notes due 2020 (1) 690.0 690.0 1.625% Notes due 2023 (2) 575.0 575.0 Note payable to SMBC due 2018, interest payable quarterly at 0% and 3.09%, respectively (3) — 122.7 Other long-term debt (4) 139.5 182.8 Gross long-term debt, including current maturities 2,939.0 3,175.0 Less: Debt discount (5) (139.4 ) (178.8 ) Less: Debt issuance costs (6) (33.5 ) (44.4 ) Net long-term debt, including current maturities 2,766.1 2,951.8 Less: Current maturities (138.5 ) (248.1 ) Net long-term debt $ 2,627.6 $ 2,703.7 _______________________ (1) Interest is payable on June 1 and December 1 of each year at 1.00% anually. (2) Interest is payable on April 15 and October 15 of each year at 1.625% annually. (3) This loan represented SCI LLC's non-collateralized loan with SMBC, which was guaranteed by the Company. (4) Consists of U.S. real estate mortgages, term loans, revolving lines of credit, notes payable and other facilities at certain international locations where interest is payable weekly, monthly or quarterly, with interest rates between 1.00% and 4.00% and maturity dates between 2019 and 2020. (5) Debt discount of $41.6 million and $61.9 million for the 1.00% Notes, $ 88.5 million and $104.4 million for the 1.625% Notes and $9.3 million and $12.5 million for the Term Loan "B" Facility, in each case as of December 31, 2018 and December 31, 2017 , respectively. (6) Debt issuance costs of $5.8 million and $8.6 million for the 1.00% Notes, $ 8.5 million and $10.0 million for the 1.625% Notes and $19.2 million and $25.8 million for the Term Loan "B" Facility, in each case as of December 31, 2018 and December 31, 2017 , respectively. Maturities Expected maturities relating to the Company’s gross long-term debt (including current maturities) as of December 31, 2018 are as follows (in millions): Annual Maturities 2019 $ 138.5 2020 690.9 2021 400.0 2022 — 2023 1,709.6 Thereafter — Total $ 2,939.0 Amended Credit Agreement 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 the Amended Credit Agreement and the Guarantee and Collateral Agreement. The proceeds from the Term Loan “B” Facility, along with $67.7 million funded by the Company, were deposited into escrow accounts until the close of the Fairchild Transaction. Upon the close of the Fairchild Transaction, the Company’s then current 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, 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. Borrowings under the Amended Credit Agreement may be incurred in U.S. Dollars, Euros, Pounds Sterling, Japanese Yen or any other currency approved by the Agent and the lenders under the Revolving Credit Facility, subject to certain qualifications described in the Amended Credit Agreement. Regardless of currency, 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”). Amendments to the Amended Credit Agreement On September 30, 2016, the Company, and certain of the Company’s subsidiaries, as guarantors (the “Guarantors”), entered into the First Amendment to the Amended Credit Agreement with the several lenders party thereto and Deutsche Bank AG New York Branch, as the administrative agent (the “Agent”). 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, under the First Amendment: (i) the Term Loan “B” Facility was increased to $2.4 billion ; (ii) certain restructuring transactions and intercompany intellectual property transfers were 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 Revolving Credit Facility. On March 31, 2017, the Company, the Guarantors, the several lenders party thereto and the Agent entered into the Second Amendment to the Amended Credit Agreement (the “Second Amendment”). The Second Amendment provided for, among other things, modifications to the Amended Credit Agreement to allow the 1.625% Notes to rank pari passu with borrowings under the Amended Credit Agreement and to reduce the interest rates payable under the Term Loan “B” Facility and the Revolving Credit Facility. The Second Amendment reduced the applicable margins on Eurocurrency Loans to 1.75% and 2.25% for borrowings under the Revolving Credit Facility and the Term Loan “B” Facility, respectively, and reduced the applicable margins on ABR Loans to 0.75% and 1.25% for borrowings under the Revolving Credit Facility and the Term Loan “B” Facility, respectively. On November 30, 2017, the Company, the Guarantors, the several lenders party thereto and the Agent entered into the Third Amendment to the Amended Credit Agreement (the “Third Amendment”). The Third Amendment provided for, among other things, modifications to the Amended Credit Agreement to reduce the interest rate payable under the Term Loan “B” Facility and to increase the amount that may be borrowed pursuant to the Revolving Credit Facility to $1.0 billion . The Third Amendment reduced the applicable margins on Eurocurrency Loans to 1.50% and 2.00% for borrowings under the Revolving Credit Facility and the Term Loan “B” Facility, respectively, and reduced applicable margins on ABR Loans to 0.50% and 1.00% for borrowings under the Revolving Credit Facility and the Term Loan “B” Facility, respectively. On May 31, 2018, the Company, the Guarantors, the several lenders party thereto and the Agent entered into the Fourth Amendment to the Amended Credit Agreement (the “Fourth Amendment”). Pursuant to the Fourth Amendment, for any interest period ending after the date of the Fourth Amendment, Eurocurrency Loans will accrue interest at (i) a base rate per annum equal to the Adjusted LIBO Rate (as defined in the Amended Credit Agreement) plus (ii) an applicable margin equal to (x) 1.25% with respect to borrowings under the Revolving Credit Facility (with step-downs and step-ups as set forth in the Amended Credit Agreement) or (y) 1.75% with respect to borrowings under the Term Loan “B” Facility. Pursuant to the Fourth Amendment, ABR Loans will accrue interest at (i) a base rate per annum equal to the highest of (x) the Federal funds rate plus 0.50%, (y) the prime commercial lending rate announced by the Agent from time to time as its prime lending rate and (z) the Adjusted LIBO Rate for a one month interest period (or if such day is not a business day, the immediately preceding business day) (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, subject to the interest rate floors set forth in the Amended Credit Agreement, plus (ii) an applicable margin equal to (x) 0.25% with respect to borrowings under the Revolving Credit Facility (with step-downs and step-ups as set forth in the Amended Credit Agreement) or (y) 0.75% with respect to borrowings under the Term Loan “B” Facility. The obligations under the Amended Credit Agreement are 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 Amended Credit Agreement are also collateralized by mortgage on certain real property assets of the Company and its domestic subsidiaries. The Amended Credit Agreement includes financial maintenance covenants, including, among others, a maximum 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, 2018 . The Term Loan “B” Facility will mature on March 31, 2023 and the Revolving Credit Facility will mature on September 19, 2021. Debt Refinancing and Prepayments The Company incurred third-party, legal and other fees of $1.1 million related to the Fourth Amendment and recorded debt extinguishment charges of $2.6 million , which included a write-off of $1.5 million of unamortized debt discount and issuance costs and $1.1 million in third-party fees. The Company also prepaid $70.0 million of borrowings under the Term Loan “B” Facility during the year ended December 31, 2018 and expensed $2.0 million of unamortized debt discount and issuance costs attributed to the partial pay-down as loss on debt refinancing and prepayment. The Company incurred third-party, legal and other fees of $3.3 million related to the Third Amendment and capitalized $1.9 million of closing costs relating to the Revolving Credit Facility which will be amortized straight-line over its term and expensed $1.4 million of third-party fees and expenses relating to the Term Loan “B” Facility. The Company also expensed $12.9 million of unamortized debt discount and issuance costs attributed to the partial pay down of $400.0 million of the Term Loan “B” Facility. The Company prepaid $200.0 million of borrowings under the Term Loan “B” Facility during the year ended December 31, 2017 and expensed $6.7 million of unamortized debt discount and issuance costs attributed to the partial pay-down as loss on debt refinancing and prepayment. The Company incurred legal and other fees of $2.4 million related to the Second Amendment and recorded debt extinguishment charges of $5.6 million , which included a $3.2 million write-off of unamortized debt issuance costs and $2.4 million in third-party fees. On March 31, 2017, the Company used the proceeds from the issuance of the 1.625% Notes, amounting to $562.1 million , and cash on hand of $12.9 million to prepay $575.0 million of the outstanding balance of the Term Loan “B” Facility and expensed $20.6 million of unamortized debt discount and issuance costs. 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 and recorded debt extinguishment charges of $4.7 million during the year ended December 31, 2016. The Company incurred debt issuance costs consisting of legal, underwriting and other fees of $8.2 million for the Revolving Credit Facility and 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. As a result of the above, the Company recorded debt refinancing and prepayment charges of $4.6 million , $47.2 million and $6.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. 1.00% Notes due 2020 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 1.00% 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 “ 1.00% Indenture”). 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 1.00% Notes are fully and unconditionally guaranteed on a senior unsecured obligation basis by certain existing subsidiaries of the Company. The 1.00% 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 1.00% 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 1.00% 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 1.00% 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 1.00% Indenture; or (iv) on and after September 1, 2020 . Upon conversion of the 1.00% 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 10: "Earnings Per Share and Equity." The 1.00% Notes will mature on December 1, 2020 . If a holder elects to convert its 1.00% 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 1.00% Indenture. Notwithstanding these conversion rate adjustments, the 1.00% 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 1.00% Notes at a purchase price equal to 100% of the principal amount of the 1.00% Notes to be repurchased, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The 1.00% Notes, which are the Company’s unsecured obligations, ranks equally in right of payment to all of the Company’s existing and future unsubordinated indebtedness and are senior in right of payment to all of the Company’s existing and future subordinated obligations. The 1.00% Notes are 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 1.00% 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 reduce the potential dilution from the conversion of the 1.00% 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. All 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. 1.625% Notes due 2023 On March 31, 2017, the Company completed a private placement of $575.0 million of its 1.625% Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Company incurred issuance costs of $13.7 million in connection with the issuance of the 1.625% Notes, of which $11.1 million was capitalized as debt issuance costs and is being amortized using the effective interest method, and $2.6 million was allocated to the conversion option (as further described below) and was recorded as equity. The 1.625% Notes are governed by the 1.625% Indenture. The net proceeds from the offering of the 1.625% Notes were used to repay $562.1 million of borrowings outstanding under the Term Loan “B” Facility. The 1.625% Notes bear interest at the rate of 1.625% per year from the date of issuance, payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2017. The 1.625% Notes are fully and unconditionally guaranteed, on a joint and several basis, by each of the Company’s subsidiaries that is a borrower or guarantor under the Amended Credit Agreement. The initial conversion rate of the 1.625% Notes is 48.2567 shares of common stock per $1,000 principal amount of 1.625% Notes (subject to adjustment in certain events), which is equivalent to an initial conversion price of approximately $20.72 per share of common stock. Prior to the close of business on the business day immediately preceding July 15, 2023, the 1.625% Notes will be convertible only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2017 (and only during such calendar quarter), if the last reported sale price of the Company’s 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; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 1.625% Notes for each trading day of such period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate transactions described in the 1.625% Indenture. On or after July 15, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 1.625% Notes may convert all or a portion of their 1.625% Notes at any time. Upon conversion of the 1.625% 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 10: ''Earnings Per Share and Equity'' . The 1.625% Notes will mature on October 15, 2023. If a holder elects to convert its 1.625% Notes in connection with the occurrence of specified fundamental changes that occur prior to July 15, 2023, the holder will be entitled to receive, in addition to cash and/or shares of common stock equal to the conversion rate, an additional number of shares of common stock, as described in the 1.625% Indenture. Notwithstanding these conversion rate adjustments, the 1.625% 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 a portion of their 1.625% Notes at a purchase price equal to 100% of the principal amount of the 1.625% Notes to be repurchased, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The 1.625% Notes, which are the Company’s unsecured obligations, rank equally in right of payment to all of the Company’s existing and future unsubordinated indebtedness and are senior in right of payment to all of the Company’s existing and future subordinated obligations. The 1.625% Notes are 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 1.625% Notes. In accordance with accounting guidance on embedded conversion features, the Company valued and bifurcated the conversion option associated with the 1.625% Notes from the respective host debt instrument, which is referred to as the debt discount, and initially recorded the conversion option of $115.7 million in stockholders’ equity. The resulting debt discount is being amortized to interest expense at an effective interest rate of 5.38% over the contractual terms of the notes. Concurrently with the offering of the 1.625% Notes, the Company used $59.5 million of borrowings under the Revolving Credit Facility to enter into convertible note hedge and warrant transactions with certain of the initial purchasers of the 1.625% Notes. Pursuant to these transactions, the Company has the option to purchase (subject to adjustment for certain specified transactions) an aggregate of 27.7 million shares of its common stock at a price of $20.72 per share. The total cost of the convertible note hedge transactions was $144.7 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 27.7 million shares of the Company’s common stock at a price of $30.70 per share. The Company received $85.2 million in cash proceeds from the sale of these warrants. The tax impact of the conversion option and the convertible note hedge and warrant transactions amounted to $11.0 million and was recorded in stockholders' equity. Together, the purchase of the convertible note hedges and the sale of the warrants are intended to reduce the potential dilution from the conversion of the 1.625% 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. All of the shares subject to the conversion of the 1.625% Notes and hedging transactions were reserved from the Company’s unallocated shares. 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 $122.7 million as of December 31, 2017 . The entire balance was repaid on the due date of January 2, 2018. Other Long-term Debt Note Payable to Fujitsu On October 1, 2018, the Company assumed a yen-denominated non-collateralized loan obligation amounting to $50.6 million as a result of the Company acquiring a majority ownership in OSA. See Note 10: ''Earnings Per Share and Equity'' for more information on the acquisition of OSA. Amortization and maturity of the loan is at the request of the lender, FSL. The loan bears a variable interest rate which is payable monthly and the ending balance amounting to $51.6 million has been classified as current portion of long-term debt in the Consolidated Balance Sheet as of December 31, 2018 . 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 bank for approximately $49.4 million , which was collateralized by real estate, including certain of the Company's facilities in California, Oregon, and Idaho. The balance as of December 31, 2018 was $29.5 million and the loan bears interest which is payable monthly at a rate of approximately 3.12% per annum, with a balloon payment of approximately $26.7 million in 2019 . 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 and the balance was repaid in full during the year ended December 31, 2018 . Borrowings under the loans bear interest based on the 3-month LIBO Rate 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. 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 Company’s Malaysian subsidiary borrowed the full $25.0 million available under the Malaysia Line of Credit. The balance as of December 31, 2018 was $25.0 million . Borrowings under the Malaysia Line of Credit bear interest based on the 3-month LIBO Rate, as established at the commencement of each borrowing period, plus 1.45% per annum, with interest payable quarterly. The borrowed amount is payable within 21 business days of demand. Vietnam Revolving Line of Credit On September 3, 2014, one of the Company’s wholly-owned Vietnamese subsidiaries and ON Semiconductor, as guarantor, entered into a non-collateralized and uncommitted $25.0 million line of credit (the “Vietnam Line of Credit”), the terms of which were set forth in an agreement by and between the Company’s Vietnamese subsidiary and a Japanese bank. As of December 31, 2018 , the Company’s Vietnamese subsidiary had an outstanding balance of $10.7 million under the Vietnam Line of Credit. Borrowings under the Vietnam Line of Credit bear interest based on the 3-month LIBO Rate and 12-month LIBO Rate, as established at the commencement of each borrowing period, plus 1.45% per annum, with interest payable quarterly and annually. The outstanding amount is payable within 5 business days of demand. Capital Lease Obligations The Company has various capital lease obligations primarily for buildings, which, as of December 31, 2018 , totaled $0.9 million , with interest rates ranging from 1.0% to 5.2% and maturities from the first quarter of 2019 until the fourth quarter of 2022 . Future payments for the Company's capital lease obligations are included in the annual maturities table. |
Earnings Per Share and Equity
Earnings Per Share and Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Earnings Per Share and Equity | Note 10: 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): Year ended December 31, 2018 2017 2016 Net income attributable to ON Semiconductor Corporation $ 627.4 $ 810.7 $ 182.1 Basic weighted average common shares outstanding 423.8 421.9 415.2 Add: Incremental shares for: Dilutive effect of share-based awards 4.3 5.5 3.8 Dilutive effect of convertible notes 7.8 0.9 1.0 Diluted weighted average common shares outstanding 435.9 428.3 420.0 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 1.48 $ 1.92 $ 0.44 Diluted $ 1.44 $ 1.89 $ 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. To calculate the diluted weighted-average common shares outstanding, the number of incremental shares from the assumed exercise of stock options and assumed issuance of shares relating to RSUs 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 0.6 million , 0.2 million and 1.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The dilutive impact related to the Company’s 1.00% Notes and 1.625% Notes is determined in accordance with the net share settlement requirements, under which 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. Additionally, if the average price of the Company’s common stock exceeds $25.96 per share, with respect to the 1.00% Notes, or $30.70 per share, with respect to the 1.625% Notes, during the relevant reporting period, the effect of the additional potential shares that may be issued related to the warrants that were issued concurrently with the issuance of the convertible notes will also be included in the calculation of diluted weighted-average common shares outstanding. 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 and 1.625% Notes, respectively, when the stock price is above $18.50 per share, with respect to the 1.00% Notes, and $20.72 per share, with respect to the 1.625% Notes. Equity Share Repurchase Programs On December 1, 2014, the Company announced 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 the strategic plans, market and economic conditions and the discretion of the Company’s board of directors. 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. On December 1, 2014, the Company announced the 2014 Share Repurchase Program pursuant to the Capital Allocation Policy. Under the Company’s 2014 Share Repurchase Program, the Company had the ability to repurchase up to $1.0 billion (exclusive of fees, commissions and other expenses) of the Company’s common stock over a period of four years from December 1, 2014, subject to certain contingencies. The 2014 Share Repurchase Program, which did not require the Company to purchase any particular amount of common stock and was subject to the discretion of the board of directors, expired on November 30, 2018 with approximately $288.2 million remaining unutilized. The Company repurchased common stock worth approximately $315.0 million under the 2014 Share Repurchase Program during the year ended December 31, 2018 . The Company repurchased shares worth $25.0 million of the Company’s common stock under the 2014 Share Repurchase Program in connection with the offering of the 1.625% Notes during the year ended December 31, 2017. On November 15, 2018, the Company announced the 2018 Share Repurchase Program pursuant to the Capital Allocation Policy. Under the 2018 Share Repurchase Program, the Company is authorized to repurchase up to $1.5 billion of its common shares over a four -year period, exclusive of any fees, commissions or other expenses. The Company may repurchase its common stock from time to time in privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and Rule 10b-18 of the Exchange Act, or by any combination of such methods or other methods. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations and other market and economic conditions. The 2018 Share Repurchase Program became effective on December 1, 2018. There were no repurchases made under the 2018 Share Repurchase Program during the year ended December 31, 2018 . The Company repurchased 4.2 million shares of its common stock for $71.7 million under the 2018 Share Repurchase Program subsequent to December 31, 2018 through February 15, 2019. Information relating to the Company's Share Repurchase Programs is as follows (in millions, except per share data): Year ended December 31, 2018 2017 2016 Number of repurchased shares (1) 16.8 1.6 — Beginning accrued share repurchases (2) $ — $ — $ — Aggregate purchase price 315.0 25.0 $ — Fees, commissions and other expenses 0.3 — $ — Less: ending accrued share repurchases (3) — — — Total cash used for share repurchases $ 315.3 $ 25.0 $ — Weighted-average purchase price per share (4) $ 18.78 $ 15.35 $ — Available for future purchases at period end $ 1,500.0 $ 603.2 $ 628.2 _______________________ (1) None of these shares had been reissued or retired as of December 31, 2018 , 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. 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 amount of the employee withholding taxes due are withheld by the Company upon the vesting of RSUs to pay the applicable amount of employee withholding taxes and are considered common stock repurchases. The Company then pays the applicable amount of withholding taxes in cash. The amounts remitted in the years ended December 31, 2018 and 2017 were $31.6 million and $28.1 million , respectively, for which the Company withheld approximately 1.3 million and 1.8 million shares of common stock, respectively, that were underlying the RSUs that vested. None of these shares had been reissued or retired as of December 31, 2018 , but may be reissued or retired by the Company at a later date. These deemed repurchases do not count against the Company's Share Repurchase Programs. Non-Controlling Interest The Company owns 80% of the outstanding equity interests in Leshan, and the results of Leshan have been consolidated in the Company's financial statements. Leshan operates assembly and test operations in Leshan, China. At December 31, 2018 , the Leshan non-controlling interest balance was $22.5 million . This balance included the Leshan non-controlling interest's $2.5 million share of the earnings for the year ended December 31, 2018 offset by $2.2 million of dividends paid to the non-controlling shareholder of Leshan. At December 31, 2017 , the Leshan non-controlling interest balance was $22.2 million . This balance included the Leshan non-controlling interest's $2.3 million share of the earnings for the year ended December 31, 2017 offset by $1.9 million of dividends paid to the non-controlling shareholder of Leshan. As of December 31, 2017, the Company owned 10% of the equity interest in OSA. During 2018, the Company acquired an incremental 50% equity interest for approximately $24.6 million , net of cash acquired. OSA operates a front-end wafer fabrication facility in Aizuwakamatsu, Japan. As the Company acquired a controlling financial interest on October 1, 2018, the results of OSA have been consolidated in the Company’s financial statements.This acquisition has been accounted for as an acquisition of assets. Due to the terms of the agreement with FSL, the former parent of OSA, there is no non-controlling interest balance recorded for the remaining 40% held by FSL. Subject to the fulfillment of certain conditions, the Company is required to increase its ownership in OSA to 100% between nine and eighteen months following the date it acquired the controlling financial interest. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 11: Share-Based Compensation Total share-based compensation expense related to the Company's stock options, RSUs, stock grant awards and ESPP were recorded within the Consolidated Statements of Operations and Comprehensive Income as follows (in millions): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 7.0 $ 6.0 $ 8.0 Research and development 14.3 12.5 11.1 Selling and marketing 14.1 11.7 9.8 General and administrative 42.9 39.6 27.2 Share-based compensation expense before income taxes 78.3 69.8 56.1 Related income tax benefits (1) (16.4 ) (24.4 ) — Share-based compensation expense, net of taxes $ 61.9 $ 45.4 $ 56.1 ____________________ (1) Recognition of related income tax benefits are the result of the adoption of ASU 2016-09 during the first quarter of 2017 through a cumulative effect adjustment of $68.1 million recorded as a credit to retained earnings as of January 1, 2017. Tax benefit is calculated using the federal statutory rate of 21% and 35% during the years ended December 31, 2018 and December 31, 2017 , respectively. At December 31, 2018 , total unrecognized share-based compensation expense, net of estimated forfeitures, related to non-vested RSUs with time-based service conditions and performance-based vesting criteria was $78.8 million , which is expected to be recognized over a weighted-average period of 1.4 years. The total intrinsic value of stock options exercised during the year ended December 31, 2018 was $12.5 million . The Company received cash of $5.7 million and $24.9 million from the exercise of stock options and the issuance of shares under the ESPP, respectively. Upon option exercise, release of RSUs, 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. There were no employee stock options granted during the years ended December 31, 2018 , 2017 and 2016 . Share-based compensation expense 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. The annualized pre-vesting forfeitures for RSUs were estimated to be approximately 5% for the years ended December 31, 2018 , 2017 and 2016 . Plan Descriptions On February 17, 2000, the Company adopted 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 and reapproved by the Company’s stockholders at the annual stockholder meeting on May 20, 2015. 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 . On May 17, 2017, 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 27.9 million to 87.0 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 seven 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 of 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, RSUs 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, 2018 , there was an aggregate of 33.7 million shares of common stock available for grant under the Amended and Restated SIP. Stock Options The number of options outstanding at December 31, 2017 was 1.1 million at a weighted average exercise price of $6.95 per option, of which 0.8 million options were exercised at a weighted average exercise price of $7.13 per option during the year ended December 31, 2018 . The number of options outstanding at December 31, 2018 was 0.3 million , at a weighted average exercise price of $6.41 per option and had an aggregate intrinsic value of $2.8 million . All outstanding options had exercise prices below $16.51 per share, the closing price of the Company’s common stock at December 31, 2018 , and will expire at varying times between 2019 and 2021. Restricted Stock Units A summary of the RSU transactions for the year ended December 31, 2018 are as follows (number of shares in millions): Number of Shares Weighted-Average Grant Date Fair Value Nonvested shares of RSUs at December 31, 2017 9.8 $ 12.63 Granted 3.2 23.90 Achieved 0.7 15.26 Released (4.5 ) 13.09 Canceled (0.6 ) 15.48 Nonvested shares of RSUs at December 31, 2018 8.6 16.59 During 2018 , the Company awarded 1.1 million RSUs 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, 2018 , unrecognized compensation expense, net of estimated forfeitures related to non-vested RSUs granted under the Amended and Restated SIP with time-based and performance-based conditions, was $56.7 million and $22.1 million , respectively. For RSUs with time-based service conditions, expense is being recognized over the vesting period; for RSUs 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 RSUs was $70.3 million for the year ended December 31, 2018 , which included $42.1 million for RSUs with time-based service conditions that were granted in 2018 and prior that are expected to vest. Stock Grant Awards During the year ended December 31, 2018 , the Company granted 0.1 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 $25.51 per share. Total compensation expense related to stock grant awards for the year ended December 31, 2018 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, 2018 , employees purchased approximately 1.5 million shares under the ESPP. During the years ended December 31, 2017 and 2016 , employees purchased approximately 1.9 million and 1.8 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 . Again on May 17, 2017 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 5.0 million to a total of 28.5 million . As of December 31, 2018 , there were approximately 6.5 million shares available for issuance under the ESPP. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Note 12: Employee Benefit Plans Defined Benefit Pension Plans The Company maintains defined benefit pension 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 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, 2018 2017 2016 Service cost $ 9.6 $ 10.0 $ 9.0 Interest cost 4.7 4.3 4.5 Expected return on plan assets (6.1 ) (5.5 ) (3.9 ) Curtailment gain (0.3 ) — — Actuarial and other loss 6.1 1.9 10.1 Total net periodic pension cost $ 14.0 $ 10.7 $ 19.7 Weighted average assumptions Discount rate 1.56 % 1.66 % 1.60 % Expected return on plan assets 3.18 % 3.22 % 3.20 % Rate of compensation increase 3.22 % 3.22 % 3.05 % 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. 2018 2017 Change in projected benefit obligation (PBO) Projected benefit obligation at the beginning of the year $ 292.7 $ 261.8 Service cost 9.6 10.0 Interest cost 4.7 4.3 Net actuarial (gain) loss (6.1 ) 6.4 Benefits paid by plan assets (5.6 ) (4.7 ) Benefits paid by the Company (1.7 ) (4.2 ) Curtailments and settlements (0.6 ) — Translation and other (gain) loss (2.2 ) 19.1 Projected benefit obligation at the end of the year $ 290.8 $ 292.7 Accumulated benefit obligation at the end of the year $ 249.2 $ 245.8 Change in plan assets Fair value of plan assets at the beginning of the year $ 183.4 $ 159.7 Actual return on plan assets (6.1 ) 10.0 Benefits paid from plan assets (5.6 ) (4.7 ) Employer contributions 5.0 6.0 Settlements (0.3 ) — Translation and other gain (loss) (1.5 ) 12.4 Fair value of plan assets at the end of the year $ 174.9 $ 183.4 As of December 31, 2018 2017 Plans with underfunded or non-funded projected benefit obligation Projected benefit obligation $ 282.6 $ 283.3 Fair value of plan assets 166.2 173.7 Plans with underfunded or non-funded accumulated benefit obligation Accumulated benefit obligation $ 181.4 $ 174.8 Fair value of plan assets 102.1 104.3 Amounts recognized in the balance sheet consist of Non-current assets $ 0.3 $ 0.1 Current liabilities (0.2 ) (0.2 ) Non-current liabilities (116.0 ) (109.2 ) Funded status $ (115.9 ) $ (109.3 ) As of December 31, 2018 and 2017 , respectively, the assets of the Company's foreign plans were invested 18% and 20% in equity securities, 19% and 18% in debt securities, including corporate bonds, 46% and 45% in insurance and investment contracts, 3% and 3% in cash and 14% and 14% 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. 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. Asset allocations are 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 following table sets forth, by level within the fair value hierarchy, a summary of investments measured at fair value and the asset allocations of the plan assets in the Company's foreign pension plans (in millions): As of December 31, 2018 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) 17.3 17.3 — — Corporate Bonds, Debentures (2) 33.3 — 33.3 — Equity Securities (3) 32.3 — 32.3 — Mutual Funds 7.3 — 7.3 — Investment and Insurance Annuity Contracts (4) 80.1 — 29.5 50.6 $ 174.9 $ 21.9 $ 102.4 $ 50.6 As of December 31, 2017 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) 20.1 20.1 — — Corporate Bonds, Debentures (2) 32.5 — 32.5 — Equity Securities (3) 36.8 — 36.8 — Mutual Funds 6.7 — 6.7 — Investment and Insurance Annuity Contracts (4) 82.4 — 27.2 55.2 $ 183.4 $ 25.0 $ 103.2 $ 55.2 _______________________ (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, 2018 and 2017 , respectively for plan assets with fair value measurement using significant unobservable inputs (Level 3) were as follows (in millions): Investment and Insurance Contracts Balance at December 31, 2016 $ 47.2 Actual return on plan assets 1.5 Purchase, sales and settlements (0.3 ) Foreign currency impact 6.8 Balance at December 31, 2017 $ 55.2 Actual return on plan assets (0.5 ) Purchase, sales and settlements (2.0 ) Foreign currency impact (2.1 ) Balance at December 31, 2018 $ 50.6 The expected benefit payments for the Company's defined benefit plans by year from 2019 through 2023 and the five years thereafter are as follows (in millions): 2019 $ 4.7 2020 6.4 2021 10.6 2022 12.0 2023 15.6 Five years thereafter 95.9 Total $ 145.2 The total underfunded status was $115.9 million at December 31, 2018 . The Company expects to contribute $15.3 million during 2019 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 (the "Code"). Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company has elected to match 100% of employee contributions between 0% and 4% of their salary, with an annual limit of $11,000 . The Company recognized $19.2 million , $18.4 million and $14.0 million of expense relating to matching contributions in 2018 , 2017 and 2016 , respectively. Certain foreign subsidiaries have defined contribution plans in which eligible employees participate. The Company recognized compensation expense of $20.5 million , $16.8 million and $8.9 million relating to these plans for the years ended 2018 , 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13: 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, 2018 (in millions): Year Ending December 31, 2019 $ 36.8 2020 27.6 2021 21.9 2022 16.8 2023 12.3 Thereafter 45.4 Total (1) $ 160.8 (1) Excludes $12.3 million of expected sublease income. 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 2018 , 2017 , and 2016 was $43.6 million , $45.3 million , and $31.1 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, 2018 (in millions): Year Ending December 31, 2019 $ 373.7 2020 38.2 2021 23.0 2022 9.3 2023 8.2 Thereafter 10.9 Total $ 463.3 Environmental Contingencies The Company’s headquarters in Phoenix, Arizona are 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 (acquired by NXP Semiconductors N.V.) 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 separation from Motorola in 1999, 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. The Company’s former front-end manufacturing location in Aizu, Japan is located on property where soil and ground water contamination was detected. The Company believes that the contamination originally occurred during a time when the facility was operated by a prior owner. The Company worked with local authorities to implement a remediation plan and has completed remaining remediation. The majority of the cost of remediation was covered by insurance. Any costs to the Company in connection with this matter have not been, and, based on the information available, are not expected to be material. The Company’s manufacturing facility in the Czech Republic has undergone remediation to respond to releases of hazardous substances that occurred during the years that this facility was operated by government-owned entities. The remediation projects consisted 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. The government of the Czech Republic has agreed to indemnify the Company and its respective subsidiaries, subject to specified limitations, for remediation costs associated with this historical contamination. We have completed remediation on this project, and accordingly, have ceased all related monitoring efforts. Any costs to the Company in connection with this matter have not been, and, based on the information available, 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. Any costs to the Company in connection with this matter have not been, and, based on the information available, are not expected to be material. As a result of the acquisition of AMIS of 2008, 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 include 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. Any costs to the Company in connection with this matter have not been, and, based on the information available, are not expected to be material. Through its acquisition of Fairchild, the Company acquired a facility in South Portland, Maine. This facility has 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 Incorporated. Although the Company may incur certain liabilities with respect to these 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. Under a 1999 asset purchase agreement pursuant to which Fairchild purchased the power device business of 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. Any costs to the Company in connection with this matter have not been, and, based on the information available, are not expected to be material. Under a 2001 asset purchase agreement pursuant to which Fairchild purchased a manufacturing facility in Mountain Top, Pennsylvania, Intersil Corp. (subsequently acquired by Renesas Electronics Corporation) agreed to indemnify Fairchild for remediation costs and other liabilities related to historical contamination at the facility. Any costs to the Company 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. 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, a defunct reclamation services supplier that operated in Illinois at what is now a Superfund site, has performed reclamation services for the Company in the past. 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. Any costs to the Company in connection with this matter have not been, and, based on the information available, are not expected to be material. Financing Contingencies In the ordinary course of business, the Company provides standby letters of credit and other guarantee instruments to certain parties initiated by either the Company or its subsidiaries, as required for transactions such as, but not limited to, material purchase commitments, agreements to mitigate collection risk, leases, utilities or customs guarantees. As of December 31, 2018 , the Company's Revolving Credit Facility included $15.0 million of availability for the issuance of letters of credit. There were $ 1.0 million letters of credit outstanding under the Revolving Credit Facility as of December 31, 2018 , which reduces the Company's borrowing capacity. The Company also had outstanding guarantees and letters of credit outside of its Revolving Credit Facility totaling $6.1 million as of December 31, 2018 . As part of obtaining financing in the ordinary course of business, the Company has issued guarantees related to certain of its subsidiaries' capital lease obligations, equipment financing, lines of credit and real estate mortgages, which totaled $68.6 million as of December 31, 2018 . Based on historical experience and information currently available, the Company believes that 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 company operating agreements, certificates of incorporation, by-laws, articles of association or similar organizational documents, as the case may be. Section 145 of the Delaware General Corporation Law (“DGCL”) authorizes a court to award, or a corporation’s board of directors to grant, indemnity to directors and officers under certain circumstances and subject to certain limitations. The terms of Section 145 of the DGCL are sufficiently broad to permit indemnification under certain circumstances for liabilities, including reimbursement of expenses incurred, arising under the Exchange Act. As permitted by the DGCL, the Company’s Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), contains provisions relating to the limitation of liability and indemnification of directors and officers. The Certificate of Incorporation eliminates the personal liability of each of the Company’s directors to the fullest extent permitted by Section 102(b)(7) of the DGCL, as it may be amended or supplemented, and provides that the Company will indemnify its directors and officers to the fullest extent permitted by Section 145 of the DGCL, as amended from time to time. The Company has entered into indemnification agreements with each of its directors and executive officers. The form of agreement (the “Indemnification Agreement”) provides, subject to certain exceptions and conditions specified in the Indemnification Agreement, that the Company will indemnify each indemnitee to the fullest extent permitted by Delaware law against all expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with a proceeding or claim in which such person is involved because of his or her status as one of the Company’s directors or executive officers. In addition, the Indemnification Agreement provides that the Company will, to the extent not prohibited by law and subject to certain exceptions and repayment conditions, advance specified indemnifiable expenses incurred by the indemnitee in connection with such proceeding or claim. The foregoing description of the Indemnification Agreement does not purport to be complete and is qualified in its entirety by reference to the full and complete terms of the Indemnification Agreement, which is filed as Exhibit 10.1 to the Current Report on Form 8-K filed by the Company on February 25, 2016 and is incorporated by reference herein. The Company also maintains directors’ and officers’ insurance policies that indemnify its directors and officers against various liabilities, including certain liabilities under the Exchange Act, that might be incurred by any director or officer in his or her capacity as such. The agreement and plan of merger relating to the acquisition of Fairchild (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, the Company will: (a) 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) 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, 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, the Company is 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. The Company regularly evaluates the status of the legal proceedings in which it is 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, the Company further evaluates 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 ordinary 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 (the "USPTO") are inherently uncertain, and the Company cannot guarantee that the outcome of these matters will be favorable to 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 various Fairchild entities (including Fairchild Semiconductor International, Inc., Fairchild Semiconductor Corporation, and Fairchild (Taiwan) Corporation, f/k/a System General Corporation (collectively referred to in this sub-section as “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 numerous outstanding administrative proceedings between the parties at the USPTO in which each party is challenging the validity of the other party's patents. The outcome of any litigation is inherently uncertain and difficult to predict. Any estimate or statement 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 in the aggregate. 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, alleging that certain of Fairchild’s pulse width modulation (“PWM”) integrated circuit products infringed U.S. patents owned by PI. The lawsuit sought a permanent injunction as well as money damages for Fairchild’s alleged infringement. In October 2006, a jury returned a willful infringement verdict 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 substantially all of the 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 later 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 $750,000 worth of sales and imports of affected products, and to re-assess its finding that the infringement was willful. In December 2017, the lower court reinstated the willfulness finding but stayed resolution of the other outstanding issues, including damages. In June 2018, the Supreme Court of the United States decided WesternGeco LLC v. ION Geophysical Corp. , in which the Court determined that certain extraterritorial conduct may be relevant to some United States patent litigation. On October 4, 2018, the lower court issued an order finding that WesternGeco implicitly overruled the Court of Appeals’ 2013 decision in this case and stated that PI would be allowed to seek recovery of worldwide damages in a future retrial on damages. The lower court also, however, certified its October 4, 2018 order for interlocutory review by the Court of Appeals. The Court of Appeals has accepted the interlocutory appeal, and briefing in that appeal is underway. 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, alleging that certain other PWM products infringed several U.S. patents owned by PI. On October 14, 2008, Fairchild filed a patent infringement lawsuit against PI in the U.S. District Court for the District of Delaware, alleging that certain PI products infringed U.S. patents owned by Fairchild. Each lawsuit included claims for money damages and a request for a permanent injunction. These two 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 and upheld the validity of both of the Fairchild 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, and the court entered a permanent injunction against Fairchild. Willfulness and damages were not considered in the April 2012 trial but were reserved for subsequent proceedings. Fairchild and PI appealed the liability phase of this litigation 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 patent, and remanded the case back to the lower court for further proceedings consistent with these rulings. A second jury trial was held in this matter from November 5-9, 2018, with the jury finding that Fairchild induced infringement of both remaining PI patents and that Fairchild’s infringement was willful. The jury also awarded PI damages in the amount of $24.3 million . In the parties’ post-trial motions, PI is seeking a trebling of the jury verdict in view of the jury’s willfulness finding, pre- and post- judgment interest, and its attorneys’ fees, whereas Fairchild is seeking judgment as a matter of law in its favor, or a new trial, on inducement, willfulness, and damages. 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. During the initial trial in this matter in 2014, a jury found that Fairchild willfully infringed two PI patents, awarded PI $105.0 million in damages and found that PI did not infringe any Fairchild patent. In September 2014, the court granted a motion filed by Fairchild that sought to set aside the jury’s determination that it acted willfully, and held that, as a matter of law, Fairchild’s actions were not willful. In November 2014, in response to another post-trial motion filed by Fairchild, 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. The second damages trial was held in December 2015, in which a jury awarded PI $139.8 million in damages. Fairchild filed a number of post-trial motions challenging the second damages verdict, but the court ruled against Fairchild on these motions and awarded PI approximately $7.0 million in pre-judgment interest. Following the court’s rulings on these issues, PI moved the court to reinstate the jury’s willfulness finding and sought enhanced damages and attorneys’ fees. On January 23, 2017, the court reinstated the jury’s willful infringement finding, but denied PI’s motion for enhanced damages and attorneys’ fees in its entirety. The Company appealed the infringement and damages judgments, and in July 2018, the U.S. Court of Appeals for the Federal Circuit affirmed the judgment with respect to infringement of both PI patents but vacated the damages judgment because PI had presented legally insufficient evidence to support its damages claim. The appellate court thus remanded the case back to the lower court for a new trial on damages. In August 2018, PI requested that the Federal Circuit rehear, en banc , the issues of the vacated damages award, but this request was denied in September 2018. In December 2018, PI filed a petition for certiorari in the United States Supreme Court for review of the Federal Circuit's decision, to which the Company responded in January 2019. All claims of the two PI patents found to be infringed by Fairchild have since been determined to be unpatentable in several inter partes review administrative proceedings described below. The impact of the USPTO’s unpatentability determinations on the district court judgment is uncertain at this stage of the proceedings. 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, and alleged that various PI products infringe Fairchild’s U.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 , and PI voluntarily withdrew a second and was forced to remove a third patent during the trial, which began in May 2015. In that trial, 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 . Based on the December 2016 appellate court decision in the litigation filed in Delaware in 2008 (described above), on July 13, 2017, the district court vacated the jury’s finding that PI infringed Fairchild’s patent. A jury trial was held in November 2018 to resolve several outstanding issues prior to appeal in this case. The jury in that trial found that Fairchild induced infringement of the sole PI patent Fairchild had previously been found to infringe and awarded PI damages in the amount of $719,029.10 . In the parties’ post-trial motions, PI is seeking pre- and post-judgment interest and a permanent injunction, whereas Fairchild is seeking judgment as a matter of law in its favor, or a new trial, on inducement and damages. 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 products willfully infringe two PI patents. 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 products, and also seeking damages and a permanent injunction. The lawsuit is in its earliest stages, and has been stayed pending the outcome of the Company’s administrative challenges, which are described below, to the two PI patents asserted against Fairchild. PI has also filed administrative challenges to Fairchild’s asserted patents. Power Integrations v. ON Semiconductor Corporation, and Semiconductor Components Industries, LLC (November 1, 2016, Northern District of California, 5:16-cv-06371-BLF and 5:17-cv-03189): On August 11, 2016, ON Semiconductor Corporation and SCILLC (collectively referred to in this subsection as “ON Semi”) filed a lawsuit against PI in the U.S. District Court for the District of Arizona, alleging that PI infringed six patents and seeking a permanent injunction and money damages for the alleged infringement. The lawsuit also sought a claim for a declaratory judgment that ON Semi does not infringe several of PI’s patents. Rather than responding to ON Semi’s lawsuit in Arizona, PI filed a separate lawsuit in the U.S. District Court for the Northern District of California in November 2016, alleging that ON Semi infringes six PI patents, including two of the three PI patents in ON Semi’s declaratory judgment claims from Arizona. PI also moved the Arizona court to dismiss ON Semi’s lawsuit, or in the alternative to transfer the lawsuit to California. Following various procedural motions, ON Semi’s Arizona action has been transferred to the U.S. District Court for the Northern District of California and consolidated with PI’s November 2016 lawsuit, in which PI has subsequently asserted a claim for infringement on the last of the three PI patents in ON Semi’s original declaratory judgment claims. In late 2018, the parties received a claim construction order, which included a finding that claims from several of PI’s asserted patents are invalid. Fact discovery is ongoing and will be followed by infringement, validity, and damages expert discovery. The trial is scheduled for December 2019. ON Semiconductor Corporation and Semiconductor Components Industries, LLC v. Power Integrations, Inc. (March 9, 2017, District of Delaware, 1:17-cv-00247-LPS-CJB) : On March 9, 2017, ON Semi filed a lawsuit against PI in the U.S. District Court for the District of Delaware, alleging that PI’s InnoSwitch family of products infringe six of ON Semi’s U.S. patents. Following some procedural motions, PI has since counterclaimed alleging infringement by ON Semi of seven of PI’s U.S. Patents. One of those seven patents was dropped by PI because it is asserted against ON Semi in a separate litigation. Both parties seek money damages and a permanent injunction. In late 2018, the parties received a claim construction order, following which ON Semi was forced to stipulate to non-infringement of two of ON Semi’s original six patents. PI also voluntarily dropped their claims of infringement on two of PI’s patents, leaving both parties with four asserted patents each as of January 2019. Fact discovery is ongoing and will be followed by infringement, validity, and damages expert discovery. The trial is scheduled for February 2020. Semiconductor Components Industries, LLC v. Power Integrations, Inc. (November 2017, Taiwan Intellectual Property Court, 106-Ming-min-bu-Tzu-238): In November 2017, Semiconductor Components Industries, LLC filed a lawsuit against PI in Taiwan, alleging infringement by PI of certain of ON |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 14: Fair Value Measurements Fair Value of Financial Instruments The following table summarizes the Company's financial assets and liabilities, excluding pension assets, measured at fair value on a recurring basis (in millions): Fair Value Hierarchy Description As of December 31, 2018 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 21.2 $ 21.2 — — Money market funds 0.2 0.2 — — Fair Value Hierarchy Description As of December 31, 2017 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 71.7 $ 71.7 — — Money market funds 0.2 0.2 — — Liabilities: Contingent consideration 2.3 — — 2.3 During the year ended December 31, 2018, the contingent consideration payable relating to the second earn-out for the AXSEM acquisition was reduced to zero due to a revision in the Company's expectations regarding the likelihood that the earn-out would be achieved. During the year ended December 31, 2017, the Company paid the first earn-out amount of approximately $3.9 million relating to the contingent consideration for the AXSEM acquisition and increased the second earn-out amount by $1.7 million due to the revision of the Company’s expectations of the earn-out achievement. 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) are as follows (in millions): As of December 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion Convertible notes (1) $ 1,120.6 $ 1,368.5 $ 1,080.1 $ 1,596.7 Long-term debt (1) 1,615.1 1,585.9 1,833.2 1,845.4 _______________________ (1) Carrying amount shown is net of debt discounts and debt issuance costs. See Note 9: ''Long-Term Debt'' for additional information. The fair value of the Company's 1.00% Notes and 1.625% Notes were estimated based on market prices in 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, 2018 and December 31, 2017 . 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 6: ''Goodwill and Intangible Assets'' for a discussion of certain asset impairments. As of December 31, 2018 and December 31, 2017 , 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 (in millions): Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Nonrecurring fair value measurements Impairment of property, plant and equipment held-for-sale or disposal (Level 3) $ 2.4 $ 7.9 $ 0.5 Goodwill and IPRD (Level 3) 6.8 13.1 2.2 $ 9.2 $ 21.0 $ 2.7 See Note 6: ''Goodwill and Intangible Assets'' and Note 7: ''Restructuring, Asset Impairments and Other, Net'' for additional information with respect to impairment charges. Cost Method Investments The Company accounts for investments in companies that it does not control, or have significant influence over, under the cost method, as applicable. As of each of December 31, 2018 and 2017 , the Company's cost method investments had a carrying value of $7.5 million and $12.6 million , respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Note 15: 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 and 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. As of December 31, 2018 and 2017 , the Company had net outstanding foreign exchange contracts with net notional amounts of $157.3 million and $130.5 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 (in millions): As of December 31, 2018 2017 Buy (Sell) Notional Amount Buy (Sell) Notional Amount Euro $ 13.1 $ 13.1 $ (22.9 ) $ 22.9 Japanese Yen 29.9 29.9 (40.0 ) 40.0 Philippine Peso 30.1 30.1 26.4 26.4 Chinese Yuan 20.4 20.4 5.3 5.3 Czech Koruna 9.2 9.2 7.6 7.6 Other currencies - Buy 47.1 47.1 18.0 18.0 Other currencies - Sell (7.5 ) 7.5 (10.3 ) 10.3 $ 142.3 $ 157.3 $ (15.9 ) $ 130.5 Amounts receivable or payable under the contracts are included in other current assets or accrued expenses in the accompanying Consolidated Balance Sheets. For the years ended December 31, 2018 , 2017 and 2016 , realized and unrealized foreign currency transactions totaled a $8.0 million loss, a $6.3 million loss and a $0.7 million gain, respectively. The realized and unrealized foreign currency transactions are included in other income and expenses in the Company's Consolidated Statements of Operations and Comprehensive Income. Cash Flow Hedges All derivatives are recognized on the balance sheet at their fair value and classified based on the instrument’s maturity date. Interest rate risk The Company uses interest rate swap contracts to mitigate its exposure to interest rate fluctuations associated with the Term Loan "B" Facility. The Company does not use such swap contracts for speculative or trading purposes. These contracts effectively hedge some of the future variable LIBO Rate interest expense to a fixed rate interest expense. The derivative instruments qualified for accounting as a cash flow hedge in accordance with ASC 815, and the Company designated it as such. The notional amounts of the interest rate swap agreements outstanding as of December 31, 2018 and December 31, 2017 amounted to $1.0 billion and $750.0 million , respectively. The Company performed effectiveness assessments and concluded that there was no ineffectiveness during the year ended December 31, 2018 . Foreign currency risk The purpose of the Company's foreign currency hedging activities is to protect the Company from the risk that the eventual cash flows resulting from transactions in foreign currencies will be adversely affected by changes in exchange rates. The Company enters into forward contracts that are designated as foreign currency cash flow hedges of selected forecasted payments denominated in currencies other than U.S. dollars. The Company did not have outstanding derivatives for its foreign currency exposure designated as cash flow hedges as of December 31, 2018 and 2017 . See Note 17: ''Changes in Accumulated Other Comprehensive Loss'' for the effective amounts related to derivative instruments designated as cash flow hedges affecting accumulated other comprehensive loss and the Company's Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2018 . Convertible Note Hedges The Company entered into convertible note hedges in connection with the issuance of the 1.00% Notes and 1.625% Notes. See Note 9: ''Long-Term Debt'' for further details. Other At December 31, 2018 , 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. The Company is exposed to credit-related losses if counterparties to hedge contracts fail to perform their obligations. As of December 31, 2018 , the counterparties to the Company's hedge contracts are held at financial institutions which the Company believes to be highly rated, and no credit related losses are anticipated. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16: 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, 2018 2017 2016 United States $ (181.8 ) $ (270.1 ) $ (287.0 ) Foreign 936.8 817.6 467.6 $ 755.0 $ 547.5 $ 180.6 The Company's provision (benefit) for income taxes is as follows (in millions): Year ended December 31, 2018 2017 2016 Current: Federal $ (2.0 ) $ 26.3 $ (0.1 ) State and local (2.2 ) 0.2 0.1 Foreign 55.3 53.1 34.4 51.1 79.6 34.4 Deferred: Federal 99.4 (356.3 ) 60.8 State and local — 0.4 — Foreign (25.4 ) 10.8 (99.1 ) 74.0 (345.1 ) (38.3 ) Total provision (benefit) $ 125.1 $ (265.5 ) $ (3.9 ) On December 22, 2017, the U.S. enacted comprehensive tax legislation, (the "Tax Act"). The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%, and required companies to pay a one-time mandatory repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain future foreign earnings. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allowed the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. As of December 31, 2017, the Company had not completed its accounting for the tax effects of the enactment of the Tax Act; however, in certain cases, specifically as follows, the Company had made a reasonable estimate of (i) the effects on its existing deferred tax balances and (ii) the effects of the one-time mandatory repatriation tax. The Company had recognized a provisional tax benefit of $449.9 million in the year ended December 31, 2017 associated with the items it could reasonably estimate as described in the reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate table. The Company completed its accounting for the provisions of the Tax Act as of December 22, 2018, which marked the end of the measurement period pursuant to SAB 118. With respect to (i) the effects on its existing deferred tax asset balances, the Company recognized an additional tax expense of $31.8 million related to the Company's deferred tax liability for undistributed prior years' earnings of the Company's foreign subsidiaries and $1.8 million for the impact to deferred taxes related to an increase in the limitation on deductibility of prior years’ executive compensation. With respect to (ii) the tax effects of the one-time mandatory repatriation tax, the Company recognized an additional expense of $1.5 million . The Company has concluded on the policy to record Global Intangible Low Tax Income (“GILTI”) as a period cost. The Company has also concluded on the policy of tax law ordering for reflecting the realization of the net operating losses related to GILTI as a permanent adjustment. 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, 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State and local taxes, net of federal tax benefit (1.0 ) 2.2 (3.6 ) Impact of U.S. Tax Reform and related effects (1) 4.7 (82.2 ) — Impact of foreign operations (1.2 ) (1.5 ) (8.1 ) Reversal of prior years’ indefinite reinvestment assertion — — 172.1 Impact of U.S. tax method changes (2) (6.4 ) — — Change in valuation allowance and related effects (3) (4) 0.6 0.4 (190.7 ) Non-deductible acquisition costs — — 1.9 Non-deductible share-based compensation costs (0.5 ) (1.6 ) 0.7 U.S. federal R&D credit (1.1 ) (1.5 ) (10.1 ) Other 0.5 0.7 0.6 Total 16.6 % (48.5 )% (2.2 )% (1) For the year ended December 31, 2018, this primarily includes expense of $31.8 million , or 4.2% , related to the recognition of the Company's deferred tax liability for undistributed prior years' earnings of the Company's foreign subsidiaries, $1.8 million , or 0.3% related to the limitation on deductibility of prior years’ executive compensation, and $1.5 million , or 0.2% related to the impact of the mandatory repatriation tax. These adjustments were made pursuant to SAB 118. For the year ended December 31, 2017, this included the benefit of $744.1 million , or 135.9% for the reduction in the Company's deferred tax liability for undistributed current and prior years' earnings of the Company's foreign subsidiaries and the benefit of $33.0 million , or 6.0% for the release of valuation allowance on federal foreign tax credit carryforwards which were utilized against the mandatory repatriation tax. These benefits were offset by the expense for the mandatory repatriation tax, net of unrecognized tax benefits, of $207.1 million , or 37.8% and expense related to the change in the federal rate from 35% to 21% of $120.1 million , or 21.9% on the Company's remaining net federal deferred tax asset balances. (2) For the year ended December 31, 2018, this includes a one-time benefit of $48.2 million , or 6.4% , related to U.S. tax method changes made during the year that impacted the Company’s GILTI inclusion. (3) For the year ended December 31, 2018, this includes an expense of $135.2 million , or 17.9% , primarily related to the expiration of Japan net operating losses, netted with the offsetting benefit of $135.2 million , or 17.9% , primarily for the write-off of the valuation allowance for those same Japan net operating losses. See Note 19: “Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited).” (4) For the year ended December 31, 2017, the Company included the benefit related to the change in valuation allowance on federal foreign tax credits which were previously set to expire unutilized but were utilized against the expense related to the mandatory repatriation tax $33.0 million 6.0% , in the line “Impact of U.S. Tax Reform and related effects” The Company's effective tax rate for 2018 was 16.6% , which differs from the U.S. federal statutory income tax rate of 21% primarily due to a one-time benefit of U.S. tax method changes made during the year that impacted the Company's GILTI inclusion. The Company's effective tax rate for 2017 was a benefit of 48.5% , which differs from the U.S. federal statutory income tax rate of 35% primarily due to U.S. tax reform codified under the Tax Act. The Company's effective tax rate for 2016 was a benefit of 2.2% , which differs from the U.S. federal statutory income tax rate of 35% primarily due to the release of its U.S. and Japan valuation allowances, partially offset by the reversal of the prior years' indefinite reinvestment assertion. 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 net deferred tax asset (liability) are as follows (in millions): As of December 31, 2018 2017 Net operating loss and tax credit carryforwards $ 584.9 $ 738.4 Tax-deductible goodwill and amortizable intangibles (29.4 ) (29.1 ) Reserves and accruals 57.4 49.8 Property, plant and equipment (63.5 ) (42.8 ) Inventories 20.2 24.5 Undistributed earnings of foreign subsidiaries (48.7 ) (32.5 ) Share-based compensation 7.7 9.2 Pension 24.3 21.1 Debt financing costs (8.5 ) (9.9 ) Other 14.5 17.6 Deferred tax assets and liabilities before valuation allowance 558.9 746.3 Valuation allowance (347.5 ) (462.3 ) Net deferred tax asset $ 211.4 $ 284.0 As of December 31, 2017, all benefits related to excess tax deductions from employee equity exercises are included in the Company’s NOL deferred tax asset due to the adoption of ASU 2016-09 as of the first quarter of 2017. As of December 31, 2018 and 2017 , the Company had approximately $ 768.9 million and $ 1,198.6 million , respectively, of federal NOL carryforwards, before reduction for unrecognized tax benefits, which are subject to annual limitations prescribed in Section 382 of the Internal Revenue Code. The decrease is due to NOL utilization in 2018. If not utilized, a portion of the NOLs will expire in varying amounts from 2024 to 2036. As of December 31, 2018 and 2017 , the Company had approximately $83.7 million and $46.0 million , respectively, of federal credit carryforwards, before consideration of valuation allowance or reduction for unrecognized tax benefits, which are subject to annual limitations prescribed in Section 383 of the Internal Revenue Code. The increase is primarily due to research and development credits and foreign tax credits generated during 2018. If not utilized, the credits will expire in varying amounts from 2028 to 2038. As of December 31, 2018 and 2017 , the Company had approximately $ 801.0 million and $ 790.3 million , respectively, of state NOL carryforwards, before consideration of valuation allowance or reduction for unrecognized tax benefits. The increase is due to NOL generated during 2018 partially offset by expiration. If not utilized, a portion of the NOLs will expire in varying amounts starting in 2019. Certain states have adopted the federal rule allowing unlimited NOL carryover for NOLs generated in tax years beginning after December 31, 2017. Therefore, a portion of the state NOLs generated during 2018 carry forward indefinitely. As of December 31, 2018 and 2017 , the Company had $115.8 million and $107.2 million , respectively, of state credit carryforwards before consideration of valuation allowance or reduction for unrecognized tax benefits. If not utilized, a portion of the credits will begin to expire in varying amounts starting in 2019. As of December 31, 2018 and 2017 , the Company had approximately $ 734.4 million and $ 1,103.0 million , respectively, of foreign NOL carryforwards, before consideration of valuation allowance. The decrease is primarily due to the expiration of $369.2 million of NOL carryforwards in Japan. If not utilized, a portion of the NOLs will begin to expire in varying amounts starting in 2019. A significant portion of these NOLs will expire by 2025. As of December 31, 2018 and 2017 , the Company had $68.8 million and $65.3 million , respectively, of foreign credit carryforwards before consideration of valuation allowance. If not utilized, the majority of these credits will expire by 2026. In 2016, the Company reassessed its need for a valuation allowance for the Japan consolidated group. Due to the Company’s recent trend of positive operating results, which resulted in the Japan group being in a cumulative twelve-quarter income position as of the period ended December 31, 2016, as well as the realignment of the former System Solutions Group segment, the Company realized an $89.4 million net tax benefit related to the release of a portion of its valuation allowance, to reflect the amount of its deferred tax assets which are expected to be realized in future years. The Company continues to maintain a valuation allowance on a portion of its Japan NOLs, or $172.6 million , which expire in varying amounts from 2019 to 2024. In addition to the valuation allowance mentioned above on Japan NOLs, as of December 31, 2018 and 2017, the Company continues to maintain a full valuation allowance on its U.S. state deferred tax assets, and a valuation allowance on foreign NOLs and tax credits in certain other foreign jurisdictions. At December 31, 2018, the Company is not indefinitely reinvested with respect to the earnings of its foreign subsidiaries and has therefore accrued withholding taxes that would be owed upon future distributions of such earnings. In 2017, substantially all of the Company’s foreign earnings were also not indefinitely reinvested. After the adjustments made during 2018 pursuant to SAB118, the Company was not indefinitely reinvested with respect to any of its foreign earnings from prior years. The Company maintains liabilities for unrecognized tax benefits. 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 is as follows (in millions): 2018 2017 2016 Balance at beginning of year $ 114.8 $ 136.7 $ 33.5 Acquired balances — — 86.9 Additions for tax benefits related to the current year 7.4 23.6 4.6 Additions for tax benefits of prior years 2.8 4.7 13.7 Reductions for tax benefits of prior years (1.9 ) (1.6 ) (0.4 ) Lapse of statute (10.9 ) (16.3 ) (1.6 ) Settlements — (4.9 ) — Change in rate due to U.S. Tax Reform — (27.4 ) — Balance at end of year $ 112.2 $ 114.8 $ 136.7 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 unrecognized tax benefits related to the outcome of the prior year study was also recorded. Included in the December 31, 2018 balance of $112.2 million is $82.6 million related to unrecognized tax benefits that, if recognized, would impact the annual effective tax rate. Also included in the balance of unrecognized tax benefits as of December 31, 2018 is $29.6 million of benefit that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes. Although the Company cannot predict the timing of resolution with taxing authorities, if any, the Company believes it is reasonably possible that its unrecognized tax benefits will be reduced by $3.3 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 $0.8 million of tax benefit for interest and penalties during the year ended December 31, 2018 , and recognized approximately $1.5 million and $ 0.5 million of tax expenses for interest and penalties during the years ended December 31, 2017 and 2016 , respectively. The Company had approximately $5.1 million , $5.9 million , and $4.4 million of accrued interest and penalties at December 31, 2018 , 2017 , and 2016 , respectively. Tax years prior to 2015 are generally not subject to examination by the 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 2014. 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, the Company's subsidiaries are no longer subject to income tax audits for years prior to 2008. The Company is currently under audit in the following significant jurisdictions: China, the Czech Republic, Japan, Malaysia, Mauritius, Philippines and Singapore. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Note 17: Changes in Accumulated Other Comprehensive Loss Amounts comprising the Company's accumulated other comprehensive loss and reclassifications are as follows (in millions): Foreign Currency Translation Adjustments Effects of Cash Flow Hedges Total Balance as of December 31, 2016 $ (50.2 ) — $ (50.2 ) Other comprehensive income prior to reclassifications 7.0 2.2 9.2 Amounts reclassified from accumulated other comprehensive loss — 0.4 0.4 Net current period other comprehensive income (1) 7.0 2.6 9.6 Balance as of December 31, 2017 $ (43.2 ) $ 2.6 $ (40.6 ) Other comprehensive income prior to reclassifications 0.7 (1.3 ) (0.6 ) Amounts reclassified from accumulated other comprehensive loss — 3.3 3.3 Net current period other comprehensive income (1) 0.7 2.0 2.7 Balance as of December 31, 2018 $ (42.5 ) $ 4.6 $ (37.9 ) _______________________ (1) Effects of cash flow hedges are net of tax of $0.5 million and $0.7 million of tax expense for the years ended December 31, 2018 and December 31, 2017 , respectively. Amounts which were reclassified from accumulated other comprehensive loss to the Company's Consolidated Statements of Operations and Comprehensive Income were as follows (net of tax of $0.8 million and $0.2 million in 2018 and 2017 , respectively, in millions): Amounts Reclassified from Accumulated Other Comprehensive Loss - Year Ended December 31, 2018 December 31, 2017 Statement of Operations and Comprehensive Income Line Item Interest rate swaps $ (3.3 ) $ (0.4 ) Other income and expense Total reclassifications $ (3.3 ) $ (0.4 ) |
Supplemental Disclosures
Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures | Note 18: Supplemental Disclosures Supplemental Disclosure of Cash Flow Information The Company's non-cash financing activities and cash payments for interest and income taxes are as follows (in millions): Year ended December 31, 2018 2017 2016 Non-cash financing activities: Debt issuance costs paid directly from escrow accounts $ — $ — $ 46.0 Capital expenditures in accounts payable and other liabilities 233.9 165.6 105.9 Debt assumed through purchase of equity interest and assets 50.6 — — Cash (received) paid for: Interest income $ (6.1 ) $ (3.0 ) $ (4.5 ) Interest expense 80.0 92.1 106.7 Income taxes 53.2 67.8 27.3 The Company adopted ASU 2016-18 on a retrospective basis during the quarter ended March 30, 2018. The following is a reconciliation of the captions in the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows (in millions): As of December 31, 2018 2017 2016 Consolidated Balance Sheets: Cash and cash equivalents $ 1,069.6 $ 949.2 $ 1,028.1 Restricted cash (included in other current assets) 17.5 17.4 17.7 Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 1,087.1 $ 966.6 $ 1,045.8 The restricted cash balance relates to the consideration held in escrow for the Aptina acquisition that occurred in 2014 to be released upon satisfaction of certain outstanding items contained in the merger agreement. |
Supplementary Financial Informa
Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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 is as follows (in millions, except per share data): Quarters ended in 2018 March 30 June 29 September 28 December 31 Revenue $ 1,377.6 $ 1,455.9 $ 1,541.7 $ 1,503.1 Gross Profit (exclusive of the amortization of acquisition-related intangible assets) 517.4 555.0 596.6 569.7 Net income attributable to ON Semiconductor Corporation 139.6 155.3 166.9 165.6 Diluted net income per common share attributable to ON Semiconductor Corporation 0.31 0.35 0.38 0.39 Quarters ended in 2017 March 31 June 30 September 29 December 31 Revenue $ 1,436.7 $ 1,338.0 $ 1,390.9 $ 1,377.5 Gross Profit (exclusive of the amortization of acquisition-related intangible assets) 503.1 492.0 524.0 516.5 Net income attributable to ON Semiconductor Corporation 78.2 93.9 108.7 529.9 Diluted net income per common share attributable to ON Semiconductor Corporation 0.18 0.22 0.25 1.22 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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 deferred tax assets Year ended December 31, 2016 $ 735.7 $ (356.0 ) $ 94.4 (1) $ — $ 474.1 Year ended December 31, 2017 474.1 (30.6 ) 18.8 (2) — 462.3 Year ended December 31, 2018 462.3 4.6 15.8 (2) (135.2 ) (3) 347.5 _______________________ (1) 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. (2) Primarily represents the effects of cumulative translation adjustments. (3) Primarily relates to the expiration of Japan net operating losses. See Note 16: “Income Taxes”. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of all wholly-owned and majority-owned subsidiaries over which the Company exercises control and, when applicable, entities in which the Company has a controlling financial interest or is the primary beneficiary. Investments in nonconsolidated affiliates that represent less than 20% of the related ownership interests and where the Company does not have the ability to exert significant influence are accounted for as cost method investments. All material intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP 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 revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) estimates of future payouts for customer incentives and estimates of amounts subject to allowances, returns and warranties; (ii) measurement of valuation allowances relating to inventories; (iii) fair values of share-based compensation and of financial instruments (including derivative financial instruments); and (iv) measurement of valuation allowances against deferred tax assets, evaluations of uncertain tax positions, and the impact of U.S. tax reform. Additionally, during periods where it becomes applicable, significant estimates will be used by management in determining the future cash flows used to assess and test for impairment of goodwill, indefinite-lived intangible assets and long-lived assets and in assumptions used in connection with business combinations. Actual results may differ from the estimates and assumptions used in the consolidated financial statements and related notes. |
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. |
Inventories | nventories Inventories are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. 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 revenue 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 | roperty, 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 balance sheet 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, if applicable, 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 | usiness 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 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 | oodwill 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 a reporting unit may not be recoverable.The Company’s divisions are one level below the operating segments, constituting individual businesses, at which level the Company’s segment management conducts regular reviews of the operating results. The Company's divisions, either individually or in a combination, constitute reporting units for purposes of allocating and testing goodwill. 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 exceeds 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 performs a quantitative goodwill impairment test to determine if goodwill is impaired. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. 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. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, goodwill is considered impaired and will be determined as the amount by which the reporting units carrying value exceeds its fair value, not to exceed the carrying amount of 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 revenue, gross profit, 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. |
Intangible Assets | ntangible Assets The Company's acquisitions have resulted in intangible assets consisting of values assigned to customer relationships, patents, developed technology, IPRD and trademarks. IPRD is considered an indefinite-lived intangible asset until the abandonment or completion of the associated research and development efforts. If abandoned, the assets would be impaired. If the activities are completed, a determination is made regarding the useful lives of such assets and methods of amortization. The Company is required to test its IPRD assets for impairment annually using the guidance for indefinite-lived intangible assets. An IPRD asset is considered to be impaired when the asset’s carrying amount is greater than its fair value. The Company's impairment evaluation consists of first assessing qualitative factors to determine whether events and circumstances indicate that it is more likely than not that the IPRD asset is impaired. If it is more likely than not that the asset is impaired, the Company calculates the fair value of the IPRD asset and records an impairment charge if the carrying amount exceeds fair value. The Company determines the fair value based on an income approach, which is calculated as the present value of the estimated future cash flows of the IPRD asset. The assumptions about estimated cash flows include factors such as future revenue, gross profit, operating expenses and industry trends. The Company can bypass the qualitative assessment for any asset in any period and proceed directly to the quantitative impairment test. The remaining intangible assets are considered long-lived assets and 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 | reasury 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 RSUs under the Company's share-based compensation plans. |
Debt Issuance Costs | ebt Issuance Costs Debt issuance costs for line-of-credit agreements, including the Company's Revolving Credit Facility, are capitalized and amortized over the term of the underlying agreements on a straight-line basis. 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 and Term Loan "B" Facility are recorded as a direct deduction from the carrying amount of the convertible notes and the Term Loan "B" Facility, consistent with debt discounts, and are amortized over their term using the effective interest method. Amortization of these debt issuance costs is included in interest expense. |
Revenue Recognition | n anticipation of the adoption of the New Revenue Standard, during the quarter ended March 31, 2017, the Company developed its internal systems, processes and controls to enable it to make the estimates required by the New Revenue Standard on sales to its distributors and was able to reliably estimate upfront the effects of returns and allowances and record revenue at the time of shipments to these distributors. Prior to this, the Company recognized revenue from distributors under the sell-through method as it did not have the ability to estimate the effects of returns and allowances. As a result of this change, the Company recognized an additional $155.1 million in revenue during the first quarter of 2017, which resulted in an increase of $59.0 million to income before income taxes. 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 product development agreements and manufacturing services provided to customers. The Company recognizes revenue when it satisfies a performance obligation in an amount reflecting the consideration to which it expects to be entitled. For sales agreements, the Company has identified the promise to transfer products, each of which is distinct, to be the performance obligation. For product development agreements, the Company has identified the completion of a service defined in the agreement to be the performance obligation. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue continues to be recognized following the transfer of control of the products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. Under the New Revenue Standard, revenue from certain product development agreements, which was previously deferred as delivered, is now recognized over time. During year ended December 31, 2018 , revenue increased by $4.6 million due to the impact of the adoption of the New Revenue Standard. Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do not require minimum purchase commitments. In the absence of a sales agreement, the Company’s standard terms and conditions apply. The Company considers the customer purchase orders, governed by sales agreements or the Company’s standard terms and conditions, to be the contract with the customer. The Company evaluates certain factors including the customer’s ability to pay (or credit risk). Most of the Company’s OEM customers negotiate pricing terms on an annual basis, distributors generally negotiate pricing terms on a quarterly basis, while the pricing terms for electronic manufacturer service providers are negotiated periodically during the year. Pricing terms on product development agreements are negotiated at the beginning of a project. The Company allocates the transaction price to each distinct product based on its relative stand-alone selling price. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. 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 and stock rotation provisions permitting limited levels of product returns. Sales to certain distributors, primarily those with ship and credit rights, can also be subject to price adjustment on certain products. Although payment terms vary, most distributor agreements require payment within 30 days. In addition, the Company offers cash discounts to certain customers for payments received within an agreed upon time, generally 10 days after shipment. The Company recognizes revenue when it satisfies a performance obligation. The Company recognizes revenue from sales agreements upon transferring control of a product to the customer. This typically occurs when products are shipped or delivered, depending on the delivery terms, or when products that are consigned at customer locations are consumed. The Company recognizes revenue from product development agreements over time based on the cost-to-cost method. Revenue recognized during the year ended December 31, 2018 for sales agreements and product development agreements was $5,849.0 million and $29.3 million , respectively. Sales returns and allowances are estimated based on historical experience. Provisions for discounts and rebates to customers, estimated returns and allowances, ship and credit claims and other adjustments are provided for in the same period the related revenue are recognized, and are netted against revenue. For returns, the Company recognizes a related asset for the right to recover returned products with a corresponding reduction to cost of goods sold. The Company records a reserve for cash discounts as a reduction to accounts receivable and a reduction to revenue, based on the experience with each customer. Frequently, the Company receives orders with multiple delivery dates that may extend across reporting periods. Since each delivery constitutes a performance obligation, the Company allocates the transaction price of the contract to each performance obligation based on the stand-alone selling price of the products. The Company invoices the customer for each delivery upon shipment and recognizes revenue in accordance with delivery terms. As scheduled delivery dates are within one year, revenue allocated to future shipments of partially completed contracts are not disclosed. The Company has elected to record freight and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost and include it in cost of revenue. Taxes assessed by government authorities on revenue-producing transactions, including value-added and excise taxes, are presented on a net basis (excluded from revenue) in the Consolidated Statements of Operations and Comprehensive Income. |
Warranty Reserves | he Company’s standard warranty extends for a period of two years from the date of delivery, except in the case of image sensor products, which are warrantied for one year from the date of delivery. At the time revenue is recognized, the Company establishes an accrual for estimated warranty expenses associated with its sales and records them as a component of the cost of revenue. |
Research and Development Costs | esearch and Development Costs Research and development costs are expensed as incurred. |
Share-Based Compensation | hare-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 | ncome 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 | oreign 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. Historically, the majority of the Company's Japanese subsidiaries utilized Japanese Yen as their functional currency. The assets and liabilities of these subsidiaries are translated at current exchange rates, while revenue 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. As a result of an analysis which took into account the economic indicators of these subsidiaries from a long-term perspective, the Company changed the functional currency for some of these subsidiaries from Japanese Yen to U.S. Dollars effective as of January 1, 2018. |
Defined Benefit Pension Plans | efined 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 | ontingencies The Company is involved in a variety of legal matters, intellectual property matters, environmental, financing and indemnification contingencies that arise in the ordinary course of business. Based on the 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 | air Value Measurement The Company measures certain of its financial and non-financial assets at fair value by using the 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 | ASUs Adopted: New Revenue Standard The Company adopted the New Revenue Standard on a modified retrospective basis on January 1, 2018. The cumulative-effect adjustment related to the timing of revenue recognition on certain product development agreements recorded to beginning retained earnings and accrued expenses as of January 1, 2018, was $2.1 million . The Company expects the ongoing impact of the New Revenue Standard to be immaterial to the consolidated financial statements. ASU No. 2017-09 - Scope of Modification Accounting ("ASU 2017-09") In May 2017, the FASB issued ASU No. 2017-09 to reduce diversity in practice and provide clarity regarding existing guidance in ASC 718, “Stock Compensation.” The amendments clarify that an entity should apply modification accounting in response to a change in the terms and conditions of an entity’s share-based payment awards unless three newly specified criteria are met. The amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted ASU 2017-09 during the first quarter of 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. ASU No 2017-07 The Company adopted ASU 2017-07 during the first quarter of 2018, applying the standard retrospectively to all periods presented. The adoption of this standard did not have a material impact on the current period or prior period consolidated financial statements. 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. The Company adopted ASU 2016-18 during the first quarter of 2018, applying the standard retrospectively to all periods presented. The adoption of this standard did not have a material impact on the current period or prior period consolidated financial statements. See Note 18: ''Supplemental Disclosures'' for further information on the adoption of ASU 2016-18. 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. The Company adopted ASU 2016-16 during the first quarter of 2018 and recorded the cumulative-effect adjustment of $1.4 million as a reduction to the beginning retained earnings. 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. The Company adopted ASU 2016-15 during the first quarter of 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. ASUs Pending Adoption: ASU No. 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12") In August 2017, the FASB issued ASU No. 2017-12 to better align hedge accounting with risk management strategies, and as a result, more hedging strategies will be eligible for hedge accounting. Public business entities will have until the end of the first quarter in which a hedge is designated to perform an initial assessment of a hedge’s effectiveness. After initial qualification, the new guidance permits a qualitative effectiveness assessment for certain hedges instead of a quantitative test if the company can reasonably support an expectation of high effectiveness throughout the term of the hedge. An initial quantitative test to establish that the hedge relationship is highly effective is still required. The amendments are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company does not anticipate the adoption of ASU 2017-12 will have a material impact on its consolidated financial statements. ASU No. 2016-02 - Leases (Topic 842) ("ASU 2016-02"), ASU No. 2018-10 - Codification improvements to Topic 842, Leases (“ASU 2018-10”), ASU No. 2018-11 - Leases (Topic 842) (“ASU 2018-11”) (collectively, the “New Leasing Standard”) In February 2016, the FASB issued ASU 2016-02, which amended the accounting treatment for leases. ASU 2016-02 requires that a lessee should recognize on its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. Lessees 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. In July 2018, the FASB issued ASU 2018-10 and ASU 2018-11. ASU 2018-10 provides certain areas for improvement in ASU 2016-02 and ASU 2018-11 provides an additional optional transition method by allowing entities to initially apply the New Leasing Standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The New Leasing Standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. The Company will adopt the standard beginning January 1, 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company currently plans to apply the package of practical expedients to leases that commenced before the effective date whereby we will elect to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The Company expects the adoption of this standard will result in the inclusion of a significant component of the Company's future minimum lease obligations, as disclosed in Note 13: ''Commitments and Contingencies'' on its Consolidated Balance Sheets, as right-of-use assets and lease liabilities with no material impact to its Consolidated Statements of Operations and Comprehensive Income. The Company is continuing to assess the potential impacts of the New Leasing Standard. We anticipate disclosing additional information, as necessary, to comply with the New Leasing Standard. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information Of Revenues and Gross Profit | ts. Revenue and gross profit for the Company’s operating and reporting segments are as follows (in millions): Power Solutions Group Analog Solutions Group Intelligent Sensing Group Total For year ended December 31, 2018: Revenue from external customers $ 3,038.2 $ 2,071.2 $ 768.9 $ 5,878.3 Segment gross profit 1,110.1 878.3 317.1 2,305.5 For year ended December 31, 2017: Revenue from external customers $ 2,819.3 $ 1,950.9 $ 772.9 $ 5,543.1 Segment gross profit 959.8 817.8 302.6 2,080.2 For year ended December 31, 2016: Revenue from external customers $ 1,708.6 $ 1,481.5 $ 716.8 $ 3,906.9 Segment gross profit 567.5 590.2 237.7 1,395.4 |
Reconciliation Of Operating Profit (Loss) From Segments To Consolidated | Gross profit 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, 2018 2017 2016 Gross profit for reportable segments $ 2,305.5 $ 2,080.2 $ 1,395.4 Less: unallocated manufacturing costs (66.8 ) (44.6 ) (94.9 ) Consolidated gross profit $ 2,238.7 $ 2,035.6 $ 1,300.5 |
Revenues By Geographic Location Including Local Sales And Exports | Year Ended December 31, 2018 2017 2016 Gross profit for reportable segments $ 2,305.5 $ 2,080.2 $ 1,395.4 Less: unallocated manufacturing costs (66.8 ) (44.6 ) (94.9 ) Consolidated gross profit $ 2,238.7 $ 2,035.6 $ 1,300.5 Revenue for the Company's operating and reporting segments disaggregated into geographic locations and sales channels are as follows (in millions): Year Ended December 31, 2018 Power Solutions Group Analog Solutions Group Intelligent Sensing Group Total Geographic Location Singapore $ 1,086.6 $ 704.2 $ 164.2 $ 1,955.0 Hong Kong 847.9 496.5 144.7 1,489.1 United Kingdom 488.5 319.8 138.2 946.5 United States 398.5 339.2 125.0 862.7 Other 216.7 211.5 196.8 625.0 Total $ 3,038.2 $ 2,071.2 $ 768.9 $ 5,878.3 Sales Channel Distributors $ 2,011.1 $ 1,066.4 $ 464.2 $ 3,541.7 OEM 846.8 860.7 263.4 1,970.9 Electronic Manufacturing Service Providers 180.3 144.1 41.3 365.7 Total $ 3,038.2 $ 2,071.2 $ 768.9 $ 5,878.3 |
Summary Of Property, Plant And Equipment By Geographic Location | Property, plant and equipment, net by geographic location, are summarized as follows (in millions): As of December 31, 2018 2017 United States $ 616.9 $ 547.9 Philippines 474.5 439.5 Korea 383.1 380.5 China 248.4 246.0 Malaysia 229.1 230.0 Other 597.6 435.2 $ 2,549.6 $ 2,279.1 |
Schedule of Segments and Product Lines | 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 Intelligent Sensing Group Analog products Analog products LSI products Discrete products ASIC products Sensors HD products ECL products IPM products Foundry products / services Memory products LSI products PIM products Standard logic products Sensors TMOS products Standard logic products TMOS products WBG products |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Licensing Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following table presents the allocation of the purchase price of SensL for the assets acquired and liabilities assumed based on their fair values (in millions): Purchase Price Allocation Current assets (including cash and cash equivalents of $0.7) $ 4.2 Property, plant and equipment and other non-current assets 1.8 Goodwill 18.9 Intangible assets (excluding IPRD) 31.4 IPRD 20.0 Total assets acquired 76.3 Current liabilities 0.7 Other non-current liabilities 4.0 Total liabilities assumed 4.7 Net assets acquired/purchase price $ 71.6 |
Acquisitions Schedule of Purchase Price Allocation | The following table presents the allocation of the purchase price for the acquisition of Fairchild for the assets acquired and liabilities assumed based on their fair values (in millions): Purchase Price Allocation Cash and cash equivalents $ 255.0 Receivables 227.3 Inventories 342.3 Other current assets 61.0 Property, plant and equipment 925.8 Goodwill 656.1 Intangible assets (excluding IPRD) 413.6 IPRD 134.2 Other non-current assets 13.1 Total assets acquired 3,028.4 Accounts payable 79.4 Other current liabilities 168.1 Deferred tax liabilities 213.5 Other non-current liabilities 35.2 Total liabilities assumed 496.2 Net assets acquired/purchase price $ 2,532.2 |
Schedule of Pro Forma Information | The following unaudited pro-forma consolidated results of operations for the year ended December 31, 2016 has 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 (in millions, except per share data): Year Ended December 31, 2016 Revenue $ 4,912.8 Net Income 196.6 Net income attributable to ON Semiconductor Corporation 194.2 Net income per common share attributable to ON Semiconductor Corporation: Basic 0.47 Diluted 0.46 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Operating Segment | The following table summarizes goodwill by relevant reportable segment (in millions): As of December 31, 2018 As of December 31, 2017 Goodwill Accumulated Impairment Losses Carrying Value Goodwill Accumulated Impairment Losses Carrying Value Operating Segment Analog Solutions Group $ 836.7 $ (418.9 ) $ 417.8 $ 836.7 $ (418.9 ) $ 417.8 Intelligent Sensing Group 114.4 — 114.4 95.5 — 95.5 Power Solutions Group 432.2 (31.9 ) 400.3 432.2 (28.6 ) 403.6 Total $ 1,383.3 $ (450.8 ) $ 932.5 $ 1,364.4 $ (447.5 ) $ 916.9 |
Schedule Of Change In Goodwill | The following table summarizes the change in goodwill (in millions): Net balance as of December 31, 2016 $ 924.7 Measurement period adjustment (1.3 ) Divestiture of business (6.5 ) Net balance as of December 31, 2017 916.9 Addition due to business combination 18.9 Goodwill Impairment (3.3 ) Net balance as of December 31, 2018 $ 932.5 |
Summary of Intangible Assets, Net | Intangible assets, net, were as follows (in millions): As of December 31, 2018 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Customer relationships $ 556.7 $ (359.1 ) $ (20.1 ) $ 177.5 Developed technology 698.0 (356.4 ) (2.6 ) 339.0 IPRD 64.1 — (22.5 ) 41.6 Other intangibles 82.3 (58.8 ) (15.2 ) 8.3 Total intangible assets $ 1,401.1 $ (774.3 ) $ (60.4 ) $ 566.4 As of December 31, 2017 Original Cost Accumulated Amortization Accumulated Impairment Losses Carrying Value Customer relationships $ 555.9 $ (328.5 ) $ (20.1 ) $ 207.3 Developed technology 657.6 (278.2 ) (2.6 ) 376.8 IPRD 54.5 — (19.0 ) 35.5 Other intangibles 79.8 (55.9 ) (15.2 ) 8.7 Total intangible assets $ 1,347.8 $ (662.6 ) $ (56.9 ) $ 628.3 |
Summary of Amortization Expense | Amortization expense for intangible assets, with the exception of the $41.6 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 2019 $ 106.2 2020 95.8 2021 78.7 2022 63.8 2023 47.0 Thereafter 133.3 Total estimated amortization expense $ 524.8 |
Restructuring, Asset Impairme_2
Restructuring, Asset Impairments and Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |
Summary of 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, 2018 , 2017 and 2016 is as follows (in millions): Restructuring Asset Impairments (1) Other (2) Total Year Ended December 31, 2018 Other $ 3.9 $ 4.6 $ (4.2 ) $ 4.3 Total $ 3.9 $ 4.6 $ (4.2 ) $ 4.3 Year Ended December 31, 2017 Post-Fairchild acquisition restructuring costs $ 9.7 $ — $ — $ 9.7 Manufacturing relocation (2.1 ) — — (2.1 ) Former System Solutions Group segment voluntary workforce reduction 2.2 — — 2.2 Other 0.1 7.3 3.6 11.0 Total $ 9.9 $ 7.3 $ 3.6 $ 20.8 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 (0.2 ) — — (0.2 ) Total $ 33.2 $ — $ — $ 33.2 _______________________ (1) Includes impairment charges of $7.3 million for the year ended December 31, 2017, to write down certain held-for-sale assets to fair value less costs to sell. (2) Includes gain on sale of certain held-for-sale assets for the year ended December 31, 2018 and charges related to other facility closures and asset disposal activities for the year ended December 31, 2017. |
Rollforward of Accrued Restructuring Charges | Summary of changes in accrued restructuring charges as follows (in millions): Estimated employee separation charges Estimated costs to exit Total Balance as of December 31, 2016 $ 8.1 $ — $ 8.1 Charges 7.6 2.3 9.9 Usage (13.8 ) (2.1 ) (15.9 ) Balance as of December 31, 2017 $ 1.9 $ 0.2 $ 2.1 Charges 3.9 — 3.9 Usage (5.5 ) — (5.5 ) Balance as of December 31, 2018 $ 0.3 $ 0.2 $ 0.5 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Certain significant amounts included in the Company's Consolidated Balance Sheets consist of the following (in millions): As of December 31, 2018 December 31, 2017 Inventories: Raw materials $ 137.3 $ 117.7 Work in process 760.7 660.8 Finished goods 327.2 311.0 $ 1,225.2 $ 1,089.5 Property, plant and equipment, net: Land $ 125.5 $ 148.4 Buildings 820.4 744.0 Machinery and equipment 3,980.2 3,454.6 Property, plant and equipment, gross 4,926.1 4,347.0 Less: Accumulated depreciation (2,376.5 ) (2,067.9 ) $ 2,549.6 $ 2,279.1 Accrued expenses: Accrued payroll and related benefits $ 240.8 $ 201.8 Sales related reserves 294.8 280.0 Income taxes payable 38.2 29.9 Other 85.3 101.1 $ 659.1 $ 612.8 |
Warranty Reserves | The activity related to the Company's warranty reserves are as follows (in millions): 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 Provision 6.8 Usage (7.6 ) Balance as of December 31, 2017 8.0 Provision 0.4 Usage (3.2 ) Balance as of December 31, 2018 $ 5.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company's long-term debt consists of the following (annualized interest rates, in millions): As of December 31, 2018 December 31, 2017 Amended Credit Agreement: Revolving Credit Facility due 2021, interest payable monthly at 3.77% and 3.07%, respectively $ 400.0 $ 400.0 Term Loan “B” Facility due 2023, interest payable monthly at 4.27% and 3.57%, respectively 1,134.5 1,204.5 1.00% Notes due 2020 (1) 690.0 690.0 1.625% Notes due 2023 (2) 575.0 575.0 Note payable to SMBC due 2018, interest payable quarterly at 0% and 3.09%, respectively (3) — 122.7 Other long-term debt (4) 139.5 182.8 Gross long-term debt, including current maturities 2,939.0 3,175.0 Less: Debt discount (5) (139.4 ) (178.8 ) Less: Debt issuance costs (6) (33.5 ) (44.4 ) Net long-term debt, including current maturities 2,766.1 2,951.8 Less: Current maturities (138.5 ) (248.1 ) Net long-term debt $ 2,627.6 $ 2,703.7 _______________________ (1) Interest is payable on June 1 and December 1 of each year at 1.00% anually. (2) Interest is payable on April 15 and October 15 of each year at 1.625% annually. (3) This loan represented SCI LLC's non-collateralized loan with SMBC, which was guaranteed by the Company. (4) Consists of U.S. real estate mortgages, term loans, revolving lines of credit, notes payable and other facilities at certain international locations where interest is payable weekly, monthly or quarterly, with interest rates between 1.00% and 4.00% and maturity dates between 2019 and 2020. (5) Debt discount of $41.6 million and $61.9 million for the 1.00% Notes, $ 88.5 million and $104.4 million for the 1.625% Notes and $9.3 million and $12.5 million for the Term Loan "B" Facility, in each case as of December 31, 2018 and December 31, 2017 , respectively. (6) Debt issuance costs of $5.8 million and $8.6 million for the 1.00% Notes, $ 8.5 million and $10.0 million for the 1.625% Notes and $19.2 million and $25.8 million for the Term Loan "B" Facility, in each case as of December 31, 2018 and December 31, 2017 , respectively. |
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, 2018 are as follows (in millions): Annual Maturities 2019 $ 138.5 2020 690.9 2021 400.0 2022 — 2023 1,709.6 Thereafter — Total $ 2,939.0 |
Earnings Per Share and Equity (
Earnings Per Share and Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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): Year ended December 31, 2018 2017 2016 Net income attributable to ON Semiconductor Corporation $ 627.4 $ 810.7 $ 182.1 Basic weighted average common shares outstanding 423.8 421.9 415.2 Add: Incremental shares for: Dilutive effect of share-based awards 4.3 5.5 3.8 Dilutive effect of convertible notes 7.8 0.9 1.0 Diluted weighted average common shares outstanding 435.9 428.3 420.0 Net income per common share attributable to ON Semiconductor Corporation: Basic $ 1.48 $ 1.92 $ 0.44 Diluted $ 1.44 $ 1.89 $ 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): Year ended December 31, 2018 2017 2016 Number of repurchased shares (1) 16.8 1.6 — Beginning accrued share repurchases (2) $ — $ — $ — Aggregate purchase price 315.0 25.0 $ — Fees, commissions and other expenses 0.3 — $ — Less: ending accrued share repurchases (3) — — — Total cash used for share repurchases $ 315.3 $ 25.0 $ — Weighted-average purchase price per share (4) $ 18.78 $ 15.35 $ — Available for future purchases at period end $ 1,500.0 $ 603.2 $ 628.2 _______________________ (1) None of these shares had been reissued or retired as of December 31, 2018 , 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. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 stock options, RSUs, stock grant awards and ESPP were recorded within the Consolidated Statements of Operations and Comprehensive Income as follows (in millions): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 7.0 $ 6.0 $ 8.0 Research and development 14.3 12.5 11.1 Selling and marketing 14.1 11.7 9.8 General and administrative 42.9 39.6 27.2 Share-based compensation expense before income taxes 78.3 69.8 56.1 Related income tax benefits (1) (16.4 ) (24.4 ) — Share-based compensation expense, net of taxes $ 61.9 $ 45.4 $ 56.1 ____________________ (1) Recognition of related income tax benefits are the result of the adoption of ASU 2016-09 during the first quarter of 2017 through a cumulative effect adjustment of $68.1 million recorded as a credit to retained earnings as of January 1, 2017. Tax benefit is calculated using the federal statutory rate of 21% and 35% during the years ended December 31, 2018 and December 31, 2017 , respectively. |
Summary Of Restricted Stock Units Transactions | A summary of the RSU transactions for the year ended December 31, 2018 are as follows (number of shares in millions): Number of Shares Weighted-Average Grant Date Fair Value Nonvested shares of RSUs at December 31, 2017 9.8 $ 12.63 Granted 3.2 23.90 Achieved 0.7 15.26 Released (4.5 ) 13.09 Canceled (0.6 ) 15.48 Nonvested shares of RSUs at December 31, 2018 8.6 16.59 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [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, 2018 2017 2016 Service cost $ 9.6 $ 10.0 $ 9.0 Interest cost 4.7 4.3 4.5 Expected return on plan assets (6.1 ) (5.5 ) (3.9 ) Curtailment gain (0.3 ) — — Actuarial and other loss 6.1 1.9 10.1 Total net periodic pension cost $ 14.0 $ 10.7 $ 19.7 Weighted average assumptions Discount rate 1.56 % 1.66 % 1.60 % Expected return on plan assets 3.18 % 3.22 % 3.20 % Rate of compensation increase 3.22 % 3.22 % 3.05 % |
Summary of Status Of Foreign Pension Plans | 2018 2017 Change in projected benefit obligation (PBO) Projected benefit obligation at the beginning of the year $ 292.7 $ 261.8 Service cost 9.6 10.0 Interest cost 4.7 4.3 Net actuarial (gain) loss (6.1 ) 6.4 Benefits paid by plan assets (5.6 ) (4.7 ) Benefits paid by the Company (1.7 ) (4.2 ) Curtailments and settlements (0.6 ) — Translation and other (gain) loss (2.2 ) 19.1 Projected benefit obligation at the end of the year $ 290.8 $ 292.7 Accumulated benefit obligation at the end of the year $ 249.2 $ 245.8 Change in plan assets Fair value of plan assets at the beginning of the year $ 183.4 $ 159.7 Actual return on plan assets (6.1 ) 10.0 Benefits paid from plan assets (5.6 ) (4.7 ) Employer contributions 5.0 6.0 Settlements (0.3 ) — Translation and other gain (loss) (1.5 ) 12.4 Fair value of plan assets at the end of the year $ 174.9 $ 183.4 As of December 31, 2018 2017 Plans with underfunded or non-funded projected benefit obligation Projected benefit obligation $ 282.6 $ 283.3 Fair value of plan assets 166.2 173.7 Plans with underfunded or non-funded accumulated benefit obligation Accumulated benefit obligation $ 181.4 $ 174.8 Fair value of plan assets 102.1 104.3 Amounts recognized in the balance sheet consist of Non-current assets $ 0.3 $ 0.1 Current liabilities (0.2 ) (0.2 ) Non-current liabilities (116.0 ) (109.2 ) Funded status $ (115.9 ) $ (109.3 ) |
Fair Value Measurement of Plan Assets | The following table sets forth, by level within the fair value hierarchy, a summary of investments measured at fair value and the asset allocations of the plan assets in the Company's foreign pension plans (in millions): As of December 31, 2018 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) 17.3 17.3 — — Corporate Bonds, Debentures (2) 33.3 — 33.3 — Equity Securities (3) 32.3 — 32.3 — Mutual Funds 7.3 — 7.3 — Investment and Insurance Annuity Contracts (4) 80.1 — 29.5 50.6 $ 174.9 $ 21.9 $ 102.4 $ 50.6 As of December 31, 2017 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) 20.1 20.1 — — Corporate Bonds, Debentures (2) 32.5 — 32.5 — Equity Securities (3) 36.8 — 36.8 — Mutual Funds 6.7 — 6.7 — Investment and Insurance Annuity Contracts (4) 82.4 — 27.2 55.2 $ 183.4 $ 25.0 $ 103.2 $ 55.2 _______________________ (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, 2018 and 2017 , respectively for plan assets with fair value measurement using significant unobservable inputs (Level 3) were as follows (in millions): Investment and Insurance Contracts Balance at December 31, 2016 $ 47.2 Actual return on plan assets 1.5 Purchase, sales and settlements (0.3 ) Foreign currency impact 6.8 Balance at December 31, 2017 $ 55.2 Actual return on plan assets (0.5 ) Purchase, sales and settlements (2.0 ) Foreign currency impact (2.1 ) Balance at December 31, 2018 $ 50.6 |
Expected Benefit Payments | The expected benefit payments for the Company's defined benefit plans by year from 2019 through 2023 and the five years thereafter are as follows (in millions): 2019 $ 4.7 2020 6.4 2021 10.6 2022 12.0 2023 15.6 Five years thereafter 95.9 Total $ 145.2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 (in millions): Year Ending December 31, 2019 $ 36.8 2020 27.6 2021 21.9 2022 16.8 2023 12.3 Thereafter 45.4 Total (1) $ 160.8 (1) Excludes $12.3 million of expected sublease income. |
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, 2018 (in millions): Year Ending December 31, 2019 $ 373.7 2020 38.2 2021 23.0 2022 9.3 2023 8.2 Thereafter 10.9 Total $ 463.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, excluding pension assets, measured at fair value on a recurring basis (in millions): Fair Value Hierarchy Description As of December 31, 2018 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 21.2 $ 21.2 — — Money market funds 0.2 0.2 — — Fair Value Hierarchy Description As of December 31, 2017 Level 1 Level 2 Level 3 Assets: Cash, cash equivalents: Demand and time deposits $ 71.7 $ 71.7 — — Money market funds 0.2 0.2 — — Liabilities: Contingent consideration 2.3 — — 2.3 |
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) are as follows (in millions): As of December 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion Convertible notes (1) $ 1,120.6 $ 1,368.5 $ 1,080.1 $ 1,596.7 Long-term debt (1) 1,615.1 1,585.9 1,833.2 1,845.4 _______________________ (1) Carrying amount shown is net of debt discounts and debt issuance costs. See Note 9: ''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 (in millions): Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Nonrecurring fair value measurements Impairment of property, plant and equipment held-for-sale or disposal (Level 3) $ 2.4 $ 7.9 $ 0.5 Goodwill and IPRD (Level 3) 6.8 13.1 2.2 $ 9.2 $ 21.0 $ 2.7 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 (in millions): As of December 31, 2018 2017 Buy (Sell) Notional Amount Buy (Sell) Notional Amount Euro $ 13.1 $ 13.1 $ (22.9 ) $ 22.9 Japanese Yen 29.9 29.9 (40.0 ) 40.0 Philippine Peso 30.1 30.1 26.4 26.4 Chinese Yuan 20.4 20.4 5.3 5.3 Czech Koruna 9.2 9.2 7.6 7.6 Other currencies - Buy 47.1 47.1 18.0 18.0 Other currencies - Sell (7.5 ) 7.5 (10.3 ) 10.3 $ 142.3 $ 157.3 $ (15.9 ) $ 130.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 United States $ (181.8 ) $ (270.1 ) $ (287.0 ) Foreign 936.8 817.6 467.6 $ 755.0 $ 547.5 $ 180.6 |
Provision (Benefit) For Income Taxes | The Company's provision (benefit) for income taxes is as follows (in millions): Year ended December 31, 2018 2017 2016 Current: Federal $ (2.0 ) $ 26.3 $ (0.1 ) State and local (2.2 ) 0.2 0.1 Foreign 55.3 53.1 34.4 51.1 79.6 34.4 Deferred: Federal 99.4 (356.3 ) 60.8 State and local — 0.4 — Foreign (25.4 ) 10.8 (99.1 ) 74.0 (345.1 ) (38.3 ) Total provision (benefit) $ 125.1 $ (265.5 ) $ (3.9 ) |
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, 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State and local taxes, net of federal tax benefit (1.0 ) 2.2 (3.6 ) Impact of U.S. Tax Reform and related effects (1) 4.7 (82.2 ) — Impact of foreign operations (1.2 ) (1.5 ) (8.1 ) Reversal of prior years’ indefinite reinvestment assertion — — 172.1 Impact of U.S. tax method changes (2) (6.4 ) — — Change in valuation allowance and related effects (3) (4) 0.6 0.4 (190.7 ) Non-deductible acquisition costs — — 1.9 Non-deductible share-based compensation costs (0.5 ) (1.6 ) 0.7 U.S. federal R&D credit (1.1 ) (1.5 ) (10.1 ) Other 0.5 0.7 0.6 Total 16.6 % (48.5 )% (2.2 )% (1) For the year ended December 31, 2018, this primarily includes expense of $31.8 million , or 4.2% , related to the recognition of the Company's deferred tax liability for undistributed prior years' earnings of the Company's foreign subsidiaries, $1.8 million , or 0.3% related to the limitation on deductibility of prior years’ executive compensation, and $1.5 million , or 0.2% related to the impact of the mandatory repatriation tax. These adjustments were made pursuant to SAB 118. For the year ended December 31, 2017, this included the benefit of $744.1 million , or 135.9% for the reduction in the Company's deferred tax liability for undistributed current and prior years' earnings of the Company's foreign subsidiaries and the benefit of $33.0 million , or 6.0% for the release of valuation allowance on federal foreign tax credit carryforwards which were utilized against the mandatory repatriation tax. These benefits were offset by the expense for the mandatory repatriation tax, net of unrecognized tax benefits, of $207.1 million , or 37.8% and expense related to the change in the federal rate from 35% to 21% of $120.1 million , or 21.9% on the Company's remaining net federal deferred tax asset balances. (2) For the year ended December 31, 2018, this includes a one-time benefit of $48.2 million , or 6.4% , related to U.S. tax method changes made during the year that impacted the Company’s GILTI inclusion. (3) For the year ended December 31, 2018, this includes an expense of $135.2 million , or 17.9% , primarily related to the expiration of Japan net operating losses, netted with the offsetting benefit of $135.2 million , or 17.9% , primarily for the write-off of the valuation allowance for those same Japan net operating losses. See Note 19: “Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited).” (4) For the year ended December 31, 2017, the Company included the benefit related to the change in valuation allowance on federal foreign tax credits which were previously set to expire unutilized but were utilized against the expense related to the mandatory repatriation tax $33.0 million 6.0% , in the line “Impact of U.S. Tax Reform and related effects” |
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 net deferred tax asset (liability) are as follows (in millions): As of December 31, 2018 2017 Net operating loss and tax credit carryforwards $ 584.9 $ 738.4 Tax-deductible goodwill and amortizable intangibles (29.4 ) (29.1 ) Reserves and accruals 57.4 49.8 Property, plant and equipment (63.5 ) (42.8 ) Inventories 20.2 24.5 Undistributed earnings of foreign subsidiaries (48.7 ) (32.5 ) Share-based compensation 7.7 9.2 Pension 24.3 21.1 Debt financing costs (8.5 ) (9.9 ) Other 14.5 17.6 Deferred tax assets and liabilities before valuation allowance 558.9 746.3 Valuation allowance (347.5 ) (462.3 ) Net deferred tax asset $ 211.4 $ 284.0 |
Activity For Unrecognized Gross Tax Benefits | The activity for unrecognized gross tax benefits is as follows (in millions): 2018 2017 2016 Balance at beginning of year $ 114.8 $ 136.7 $ 33.5 Acquired balances — — 86.9 Additions for tax benefits related to the current year 7.4 23.6 4.6 Additions for tax benefits of prior years 2.8 4.7 13.7 Reductions for tax benefits of prior years (1.9 ) (1.6 ) (0.4 ) Lapse of statute (10.9 ) (16.3 ) (1.6 ) Settlements — (4.9 ) — Change in rate due to U.S. Tax Reform — (27.4 ) — Balance at end of year $ 112.2 $ 114.8 $ 136.7 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Amounts comprising the Company's accumulated other comprehensive loss and reclassifications are as follows (in millions): Foreign Currency Translation Adjustments Effects of Cash Flow Hedges Total Balance as of December 31, 2016 $ (50.2 ) — $ (50.2 ) Other comprehensive income prior to reclassifications 7.0 2.2 9.2 Amounts reclassified from accumulated other comprehensive loss — 0.4 0.4 Net current period other comprehensive income (1) 7.0 2.6 9.6 Balance as of December 31, 2017 $ (43.2 ) $ 2.6 $ (40.6 ) Other comprehensive income prior to reclassifications 0.7 (1.3 ) (0.6 ) Amounts reclassified from accumulated other comprehensive loss — 3.3 3.3 Net current period other comprehensive income (1) 0.7 2.0 2.7 Balance as of December 31, 2018 $ (42.5 ) $ 4.6 $ (37.9 ) _______________________ (1) Effects of cash flow hedges are net of tax of $0.5 million and $0.7 million of tax expense for the years ended December 31, 2018 and December 31, 2017 , 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 were as follows (net of tax of $0.8 million and $0.2 million in 2018 and 2017 , respectively, in millions): Amounts Reclassified from Accumulated Other Comprehensive Loss - Year Ended December 31, 2018 December 31, 2017 Statement of Operations and Comprehensive Income Line Item Interest rate swaps $ (3.3 ) $ (0.4 ) Other income and expense Total reclassifications $ (3.3 ) $ (0.4 ) |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 are as follows (in millions): Year ended December 31, 2018 2017 2016 Non-cash financing activities: Debt issuance costs paid directly from escrow accounts $ — $ — $ 46.0 Capital expenditures in accounts payable and other liabilities 233.9 165.6 105.9 Debt assumed through purchase of equity interest and assets 50.6 — — Cash (received) paid for: Interest income $ (6.1 ) $ (3.0 ) $ (4.5 ) Interest expense 80.0 92.1 106.7 Income taxes 53.2 67.8 27.3 |
Schedule of Cash and Cash Equivalents | The following is a reconciliation of the captions in the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows (in millions): As of December 31, 2018 2017 2016 Consolidated Balance Sheets: Cash and cash equivalents $ 1,069.6 $ 949.2 $ 1,028.1 Restricted cash (included in other current assets) 17.5 17.4 17.7 Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 1,087.1 $ 966.6 $ 1,045.8 |
Supplementary Financial Infor_2
Supplementary Financial Information - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Consolidated unaudited quarterly financial information is as follows (in millions, except per share data): Quarters ended in 2018 March 30 June 29 September 28 December 31 Revenue $ 1,377.6 $ 1,455.9 $ 1,541.7 $ 1,503.1 Gross Profit (exclusive of the amortization of acquisition-related intangible assets) 517.4 555.0 596.6 569.7 Net income attributable to ON Semiconductor Corporation 139.6 155.3 166.9 165.6 Diluted net income per common share attributable to ON Semiconductor Corporation 0.31 0.35 0.38 0.39 Quarters ended in 2017 March 31 June 30 September 29 December 31 Revenue $ 1,436.7 $ 1,338.0 $ 1,390.9 $ 1,377.5 Gross Profit (exclusive of the amortization of acquisition-related intangible assets) 503.1 492.0 524.0 516.5 Net income attributable to ON Semiconductor Corporation 78.2 93.9 108.7 529.9 Diluted net income per common share attributable to ON Semiconductor Corporation 0.18 0.22 0.25 1.22 |
Background and Basis of Prese_2
Background and Basis of Presentation (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Income (Loss) | $ | $ 847.2 | $ 681.6 | $ 246.8 |
Number of operating segments | segment | 3 | ||
Number of reportable segments | segment | 3 | ||
ASU 2017-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Income (Loss) | $ | $ 0.7 | $ 10.7 |
Significant Accounting Polici_3
Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | |
Significant Accounting Policies [Line Items] | |||||||||||||
Accumulated earnings | $ 979.6 | $ 351.5 | $ 979.6 | $ 351.5 | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 68.1 | ||||||||||||
Increase in quarterly revenues | $ 1,503.1 | $ 1,541.7 | $ 1,455.9 | $ 1,377.6 | $ 1,377.5 | $ 1,390.9 | $ 1,338 | $ 1,436.7 | 5,878.3 | 5,543.1 | $ 3,906.9 | ||
Increase to income before income taxes | $ 755 | 547.5 | 180.6 | ||||||||||
Standard product warranty, period from the date of shipment (in years) | 2 years | ||||||||||||
Revenue from external customers | $ 5,878.3 | 5,543.1 | 3,906.9 | ||||||||||
Intelligent Sensing Group | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Standard product warranty, period from the date of shipment (in years) | 1 year | ||||||||||||
Revenue from external customers | $ 768.9 | $ 772.9 | $ 716.8 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 2.1 | ||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Accumulated earnings | 2.1 | ||||||||||||
Adjustments for New Accounting Pronouncement | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Increase in quarterly revenues | 155.1 | 4.6 | |||||||||||
Increase to income before income taxes | $ 59 | ||||||||||||
Accounting Standards Update 2016-16 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Accumulated earnings | $ (1.4) | ||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1.4) | ||||||||||||
Sales Agreements | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Revenue from external customers | 5,849 | ||||||||||||
Product development agreements | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Revenue from external customers | $ 29.3 | ||||||||||||
Minimum | Building | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful lives of property, plant and equipment (in years) | 30 years | ||||||||||||
Minimum | Machinery and Equipment | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful lives of property, plant and equipment (in years) | 3 years | ||||||||||||
Maximum | Building | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful lives of property, plant and equipment (in years) | 50 years | ||||||||||||
Maximum | Machinery and Equipment | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful lives of property, plant and equipment (in years) | 20 years |
Revenue and Segment Information
Revenue and Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Revenue and Segment Informati_2
Revenue and Segment Information (Segment Information Of Revenues, Gross Profit And Operating Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenue from external customers | $ 5,878.3 | $ 5,543.1 | $ 3,906.9 |
Segment gross profit | 2,305.5 | 2,080.2 | 1,395.4 |
Power Solutions Group | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 3,038.2 | 2,819.3 | 1,708.6 |
Segment gross profit | 1,110.1 | 959.8 | 567.5 |
Analog Solutions Group | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 2,071.2 | 1,950.9 | 1,481.5 |
Segment gross profit | 878.3 | 817.8 | 590.2 |
Intelligent Sensing Group | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 768.9 | 772.9 | 716.8 |
Segment gross profit | $ 317.1 | $ 302.6 | $ 237.7 |
Revenue and Segment Informati_3
Revenue and Segment Information (Reconciliation Of Operating Profit (Loss) From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Gross profit for reportable segments | $ 2,305.5 | $ 2,080.2 | $ 1,395.4 | ||||||||
Gross profit | $ 569.7 | $ 596.6 | $ 555 | $ 517.4 | $ 516.5 | $ 524 | $ 492 | $ 503.1 | 2,238.7 | 2,035.6 | 1,300.5 |
Gross profit for reportable segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit for reportable segments | 2,305.5 | 2,080.2 | 1,395.4 | ||||||||
Less: unallocated manufacturing costs | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Less: unallocated manufacturing costs | $ (66.8) | $ (44.6) | $ (94.9) |
Revenue and Segment Informati_4
Revenue and Segment Information (Revenues By Geographic Location Including Local Sales And Exports) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenue from external customers | $ 5,878.3 | $ 5,543.1 | $ 3,906.9 |
OEM | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 1,970.9 | ||
Distributors | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 3,541.7 | ||
Electronic Manufacturing Service Providers | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 365.7 | ||
Singapore | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 1,955 | ||
Hong Kong | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 1,489.1 | ||
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 946.5 | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 862.7 | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 625 | ||
Power Solutions Group | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 3,038.2 | 2,819.3 | 1,708.6 |
Power Solutions Group | OEM | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 846.8 | ||
Power Solutions Group | Distributors | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 2,011.1 | ||
Power Solutions Group | Electronic Manufacturing Service Providers | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 180.3 | ||
Power Solutions Group | Singapore | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 1,086.6 | ||
Power Solutions Group | Hong Kong | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 847.9 | ||
Power Solutions Group | United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 488.5 | ||
Power Solutions Group | United States | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 398.5 | ||
Power Solutions Group | Other | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 216.7 | ||
Analog Solutions Group | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 2,071.2 | 1,950.9 | 1,481.5 |
Analog Solutions Group | OEM | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 860.7 | ||
Analog Solutions Group | Distributors | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 1,066.4 | ||
Analog Solutions Group | Electronic Manufacturing Service Providers | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 144.1 | ||
Analog Solutions Group | Singapore | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 704.2 | ||
Analog Solutions Group | Hong Kong | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 496.5 | ||
Analog Solutions Group | United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 319.8 | ||
Analog Solutions Group | United States | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 339.2 | ||
Analog Solutions Group | Other | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 211.5 | ||
Intelligent Sensing Group | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 768.9 | $ 772.9 | $ 716.8 |
Intelligent Sensing Group | OEM | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 263.4 | ||
Intelligent Sensing Group | Distributors | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 464.2 | ||
Intelligent Sensing Group | Electronic Manufacturing Service Providers | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 41.3 | ||
Intelligent Sensing Group | Singapore | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 164.2 | ||
Intelligent Sensing Group | Hong Kong | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 144.7 | ||
Intelligent Sensing Group | United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 138.2 | ||
Intelligent Sensing Group | United States | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 125 | ||
Intelligent Sensing Group | Other | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | $ 196.8 |
Revenue and Segment Informati_5
Revenue and Segment Information (Summary Of Property, Plant And Equipment By Geographic Location) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 2,549.6 | $ 2,279.1 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 616.9 | 547.9 |
Korea | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 383.1 | 380.5 |
Malaysia | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 229.1 | 230 |
Philippines | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 474.5 | 439.5 |
China | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 248.4 | 246 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 597.6 | $ 435.2 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated earnings | $ 979.6 | $ 351.5 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated earnings | $ 2.1 | |||
Accounting Standards Update 2016-16 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated earnings | $ (1.4) |
Acquisitions, Divestitures an_3
Acquisitions, Divestitures and Licensing Transactions (Narrative) (Details) - USD ($) $ in Millions | Jun. 25, 2018 | May 08, 2018 | Nov. 29, 2017 | Sep. 29, 2017 | Sep. 19, 2016 | Aug. 29, 2016 | Sep. 29, 2017 | Dec. 31, 2016 | Jun. 20, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 09, 2016 |
Business Acquisition [Line Items] | |||||||||||||
Acquisition-related costs | $ 4.5 | $ 3.2 | |||||||||||
Goodwill | $ 924.7 | 932.5 | 916.9 | $ 924.7 | |||||||||
Proceeds from divestiture of business | 8.4 | 20 | 104 | ||||||||||
Gain on divestiture of business | 5 | 12.5 | 92.2 | ||||||||||
Revenue from sale of licenses | 5,878.3 | 5,543.1 | 3,906.9 | ||||||||||
Goodwill impairment | 3.3 | ||||||||||||
Power Solutions Group | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue from sale of licenses | 3,038.2 | 2,819.3 | 1,708.6 | ||||||||||
Analog Solutions Group | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue from sale of licenses | 2,071.2 | 1,950.9 | 1,481.5 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Gain on divestiture of business | 5 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Transient Voltage Suppressing Diodes | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from divestiture of business | $ 5.6 | ||||||||||||
Gain on divestiture of business | 4.6 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | IGBT and Thyristor | |||||||||||||
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 | ||||||||||||
Disposal Group, Not Discontinued Operations | Xsens Holding B.V. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from divestiture of business | $ 20.8 | ||||||||||||
Gain on divestiture of business | $ 12.5 | ||||||||||||
Percentage of outstanding shares disposed of | 100.00% | ||||||||||||
Cash consideration received | $ 26 | $ 26 | |||||||||||
Percentage of cash consideration deposited in escrow | 20.00% | ||||||||||||
Amount of cash consideration deposited in escrow | 5.2 | ||||||||||||
Contingent liability period | 18 months | ||||||||||||
Carrying value of assets and liabilities sold | $ 7 | 7 | |||||||||||
Goodwill disposed of | $ 6.5 | $ 6.5 | |||||||||||
HIDM | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from divestiture of business | 52.5 | ||||||||||||
Deferred Licensing Revenue | $ 10 | ||||||||||||
Proceeds from License Fees Received | $ 10 | ||||||||||||
QST Co. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from License Fees Received | $ 13 | ||||||||||||
Proceeds From Other Fees | $ 8.5 | ||||||||||||
QST Co. | License | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue from sale of licenses | $ 22.7 | ||||||||||||
SensL Technologies, Ltd. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Amount of non-controlling interest acquired in the period (as a percent) | 100.00% | ||||||||||||
Payments to Acquire Businesses, Gross | $ 71.6 | ||||||||||||
Goodwill | $ 18.9 | ||||||||||||
Weighted average useful life (in years) | 7 years | ||||||||||||
SensL Technologies, Ltd. | Other Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets acquired | $ 31.4 | ||||||||||||
SensL Technologies, Ltd. | Developed technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangibles | $ 30 | ||||||||||||
Weighted average useful life (in years) | 7 years | ||||||||||||
SensL Technologies, Ltd. | IPRD | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangibles | $ 20 | ||||||||||||
Discount rate (as a percent) | 30.00% | ||||||||||||
Fairchild | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Amount of non-controlling interest acquired in the period (as a percent) | 100.00% | ||||||||||||
Discount rate (as a percent) | 14.50% | ||||||||||||
Goodwill | $ 656.1 | $ 656.1 | |||||||||||
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 | 134.2 | 134.2 | |||||||||||
Intangible assets acquired | $ 413.6 | $ 413.6 | |||||||||||
Weighted average useful life (in years) | 12 years 1 month | ||||||||||||
Business combination, acquisition cost | $ 24.7 | ||||||||||||
Fairchild | Developed technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets acquired | $ 272.7 | ||||||||||||
Weighted average useful life (in years) | 11 years | ||||||||||||
Fairchild | Customer Relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets acquired | $ 135.5 | ||||||||||||
Weighted average useful life (in years) | 15 years | ||||||||||||
Fairchild | Backlog | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets acquired | $ 3 | ||||||||||||
Weighted average useful life (in years) | 6 months | ||||||||||||
Fairchild | Power Solutions Group | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 366.1 | ||||||||||||
Fairchild | Analog Solutions Group | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 290 |
Acquisitions, Divestitures an_4
Acquisitions, Divestitures and Licensing Transactions (Acquisitions Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | May 08, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 19, 2016 | Sep. 09, 2016 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 932.5 | $ 916.9 | $ 924.7 | |||
SensL Technologies, Ltd. | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | $ 4.2 | |||||
Cash and cash equivalents | 0.7 | |||||
Property, plant and equipment and other non-current assets | 1.8 | |||||
Goodwill | 18.9 | |||||
Total assets acquired | 76.3 | |||||
Current liabilities | 0.7 | |||||
Other non-current liabilities | 4 | |||||
Total liabilities assumed | 4.7 | |||||
Net assets acquired/purchase price | 71.6 | |||||
Fairchild | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 255 | |||||
Receivables | 227.3 | |||||
Inventories | 342.3 | |||||
Other current assets | 61 | |||||
Property, plant and equipment | 925.8 | |||||
Goodwill | $ 656.1 | 656.1 | ||||
Intangible assets (excluding IPRD) | 413.6 | 413.6 | ||||
In-process research and development | $ 134.2 | 134.2 | ||||
Other non-current assets | 13.1 | |||||
Total assets acquired | 3,028.4 | |||||
Accounts payable | 79.4 | |||||
Other current liabilities | 168.1 | |||||
Deferred tax liabilities | 213.5 | |||||
Other non-current liabilities | 35.2 | |||||
Total liabilities assumed | 496.2 | |||||
Net assets acquired/purchase price | $ 2,532.2 | |||||
Other Intangible Assets | SensL Technologies, Ltd. | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets (excluding IPRD) | 31.4 | |||||
IPRD | SensL Technologies, Ltd. | ||||||
Business Acquisition [Line Items] | ||||||
IPRD | $ 20 |
Acquisitions, Divestitures an_5
Acquisitions, Divestitures and Licensing Transactions (Schedule of Pro Forma Information) (Details) - Fairchild $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ 4,912.8 |
Net Income | 196.6 |
Net income attributable to ON Semiconductor Corporation | $ 194.2 |
Net income per common share attributable to ON Semiconductor Corporation, Basic (in dollars per share) | $ / shares | $ 0.47 |
Net income per common share attributable to ON Semiconductor Corporation, Diluted (in dollars per share) | $ / shares | $ 0.46 |
Acquisitions, Divestitures an_6
Acquisitions, Divestitures and Licensing Transactions (Acquisitions Schedule of Purchase Price Allocation) (Non-Printing Section) (Details) - SensL Technologies, Ltd. $ in Millions | May 08, 2018USD ($) |
Business Acquisition [Line Items] | |
Cash and Equivalents | $ 0.7 |
Weighted average useful life (in years) | 7 years |
Developed technology | |
Business Acquisition [Line Items] | |
Weighted average useful life (in years) | 7 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | Dec. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | $ 3.3 | ||||
Addition due to business combination | $ 1.3 | $ (1.3) | |||
Goodwill and intangible asset impairment | 6.8 | 13.1 | $ 2.2 | ||
Amortization of acquisition-related intangible assets | 111.7 | 123.8 | 104.8 | ||
Intangible assets, net | $ 628.3 | 566.4 | 628.3 | ||
Disposal Group, Not Discontinued Operations | Xsens Holding B.V. | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets disposed of as part of sale transaction | 8.7 | 8.7 | |||
IPRD | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
IPRD projects reclassified to developed technology | 10.4 | 99.4 | 21.6 | ||
Intangible assets, net | 35.5 | 41.6 | 35.5 | ||
IPRD | Intelligent Sensing Group | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill and intangible asset impairment | $ 3.5 | $ 2.2 | |||
IPRD | Power Solutions Group and Analog Solutions Group | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill and intangible asset impairment | $ 7.7 | ||||
IPRD | Analog Solutions Group | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill and intangible asset impairment | $ 5.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Summary Of Goodwill by Operating Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||
Goodwill | $ 1,383.3 | $ 1,364.4 | |
Accumulated Impairment Losses | (450.8) | (447.5) | |
Carrying Value | 932.5 | 916.9 | $ 924.7 |
Analog Solutions Group | |||
Goodwill [Line Items] | |||
Goodwill | 836.7 | 836.7 | |
Accumulated Impairment Losses | (418.9) | (418.9) | |
Carrying Value | 417.8 | 417.8 | |
Intelligent Sensing Group | |||
Goodwill [Line Items] | |||
Goodwill | 114.4 | 95.5 | |
Accumulated Impairment Losses | 0 | 0 | |
Carrying Value | 114.4 | 95.5 | |
Power Solutions Group | |||
Goodwill [Line Items] | |||
Goodwill | 432.2 | 432.2 | |
Accumulated Impairment Losses | (31.9) | (28.6) | |
Carrying Value | $ 400.3 | $ 403.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Summary Of Change In Goodwill) (Details) - USD ($) $ in Millions | Dec. 29, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 916.9 | $ 924.7 | |
Goodwill, Purchase Accounting Adjustments | $ 1.3 | (1.3) | |
Divestiture of business | (6.5) | ||
Addition due to business combination | 18.9 | ||
Goodwill Impairment | (3.3) | ||
Goodwill, ending balance | $ 932.5 | $ 916.9 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Summary Of Intangible Assets, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | $ 1,401.1 | $ 1,347.8 |
Accumulated Amortization | (774.3) | (662.6) |
Accumulated Impairment Losses | (60.4) | (56.9) |
Carrying Value | 566.4 | 628.3 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 556.7 | 555.9 |
Accumulated Amortization | (359.1) | (328.5) |
Accumulated Impairment Losses | (20.1) | (20.1) |
Carrying Value | 177.5 | 207.3 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 698 | 657.6 |
Accumulated Amortization | (356.4) | (278.2) |
Accumulated Impairment Losses | (2.6) | (2.6) |
Carrying Value | 339 | 376.8 |
IPRD | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 64.1 | 54.5 |
Accumulated Amortization | 0 | 0 |
Accumulated Impairment Losses | (22.5) | (19) |
Carrying Value | 41.6 | 35.5 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | 82.3 | 79.8 |
Accumulated Amortization | (58.8) | (55.9) |
Finite-Lived Intangible Assets | (15.2) | (15.2) |
Carrying Value | $ 8.3 | $ 8.7 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Summary Of Amortization Expense) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 106.2 |
2,020 | 95.8 |
2,021 | 78.7 |
2,022 | 63.8 |
2,023 | 47 |
Thereafter | 133.3 |
Total estimated amortization expense | $ 524.8 |
Restructuring, Asset Impairme_3
Restructuring, Asset Impairments and Other, Net (Summary of Restructuring, Asset Impairments and Other, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 3.9 | $ 9.9 | $ 33.2 |
Asset Impairments | 4.6 | 7.3 | 0 |
Other | (4.2) | 3.6 | 0 |
Total | 4.3 | 20.8 | 33.2 |
Impairment charges | 7.3 | ||
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 3.9 | 0.1 | (0.2) |
Asset Impairments | 4.6 | 7.3 | 0 |
Other | (4.2) | 3.6 | 0 |
Total | $ 4.3 | 11 | (0.2) |
Employee Severance | Cost Reduction Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 9.7 | ||
Asset Impairments | 0 | ||
Other | 0 | ||
Total | 9.7 | ||
Employee Severance | Manufacturing Relocation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (2.1) | ||
Asset Impairments | 0 | ||
Other | 0 | ||
Total | (2.1) | ||
Employee Severance | European Marketing Organization Relocation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 5.3 | ||
Asset Impairments | 0 | ||
Other | 0 | ||
Total | 5.3 | ||
Workforce Reduction | Restructuring Plan - 2015 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2.2 | 25.7 | |
Asset Impairments | 0 | 0 | |
Other | 0 | 0 | |
Total | $ 2.2 | 25.7 | |
Business Combination Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 2.1 | ||
Asset Impairments | 0 | ||
Other | 0 | ||
Total | 2.1 | ||
Facility Closing | KSS Facility Closure | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0.3 | ||
Asset Impairments | 0 | ||
Other | 0 | ||
Total | $ 0.3 |
Restructuring, Asset Impairme_4
Restructuring, Asset Impairments and Other, Net (Rollforward of Accrued Restructuring Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | $ 2.1 | $ 8.1 |
Charges | 3.9 | 9.9 |
Usage | (5.5) | (15.9) |
Balance at End of Period | 0.5 | 2.1 |
Estimated Employee Separation Charges | ||
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | 1.9 | 8.1 |
Charges | 3.9 | 7.6 |
Usage | (5.5) | (13.8) |
Balance at End of Period | 0.3 | 1.9 |
Estimated Costs To Exit | ||
Restructuring Reserve [Roll Forward] | ||
Balance at Beginning of Period | 0.2 | 0 |
Charges | 0 | 2.3 |
Usage | 0 | (2.1) |
Balance at End of Period | $ 0.2 | $ 0.2 |
Restructuring, Asset Impairme_5
Restructuring, Asset Impairments and Other, Net (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2016employee | Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($)employee | Mar. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 3.9 | $ 9.9 | |||
Payments for restructuring | 5.5 | 15.9 | |||
Accrued liabilities | $ 0.5 | 2.1 | $ 8.1 | ||
Cost Reduction Plan | Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of positions to be eliminated | employee | 5 | 225 | |||
Charges | $ 7.9 | $ 25.7 | |||
Number of positions eliminated | employee | 111 | ||||
Total positions eliminated | employee | 336 | ||||
Number of employees who have exited to date | employee | 331 | ||||
Total charges expected to incur | $ 35.4 | ||||
Payments for restructuring | $ 13.4 | 20.2 | |||
Accrued liabilities | 1.8 | ||||
Severance Payments | $ 1.3 | ||||
Cost Reduction Plan | Other Exit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 1.8 | ||||
Manufacturing Relocation | Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrued liabilities | $ 2.1 | ||||
Systems Solutions Group Voluntary Workforce Reduction | Workforce Reduction | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 5.3 | ||||
Total charges expected to incur | 2.2 | ||||
Payments for restructuring | $ 2 | ||||
Number of positions eliminated voluntarily (employee) | employee | 36 | ||||
Japan Voluntary Workforce Reduction | Workforce Reduction | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of employees who have volunteered and signed separation agreement | employee | 75 |
Balance Sheet Information (Supp
Balance Sheet Information (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories: | ||
Raw materials | $ 137.3 | $ 117.7 |
Work in process | 760.7 | 660.8 |
Finished goods | 327.2 | 311 |
Inventories, net | 1,225.2 | 1,089.5 |
Property, plant and equipment, net: | ||
Land | 125.5 | 148.4 |
Buildings | 820.4 | 744 |
Machinery and equipment | 3,980.2 | 3,454.6 |
Total property, plant and equipment | 4,926.1 | 4,347 |
Less: Accumulated depreciation | (2,376.5) | (2,067.9) |
Property, plant and equipment, net | 2,549.6 | 2,279.1 |
Accrued expenses: | ||
Accrued payroll | 240.8 | 201.8 |
Sales related reserves | 294.8 | 280 |
Income taxes payable | 38.2 | 29.9 |
Other | 85.3 | 101.1 |
Accrued expenses | $ 659.1 | $ 612.8 |
Balance Sheet Information (Narr
Balance Sheet Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2018 | |
Long Lived Assets Held-for-sale [Line Items] | ||||
Carrying value of assets classified as held-for-sale | $ 1.4 | $ 5.3 | ||
Depreciation expense for property, plant and equipment | 359.3 | 325.2 | $ 239.6 | |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Property, plant and equipment long lived | $ 5.5 | |||
Capital lease obligations | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Assets financed under capital leases included in total property, plant and equipment | $ 0.9 | $ 4.2 |
Balance Sheet Information (Warr
Balance Sheet Information (Warranty Reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Warranty Reserves [Roll Forward] | |||
Beginning Balance | $ 8 | $ 8.8 | $ 5.3 |
Provision | 0.4 | 6.8 | 6.3 |
Usage | (3.2) | (7.6) | (10.8) |
Warranty reserves from acquired businesses | 8 | ||
Ending Balance | $ 5.2 | $ 8 | $ 8.8 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Dec. 31, 2018 | May 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Jun. 08, 2015 |
Debt Instrument [Line Items] | |||||
Gross long-term debt, including current maturities | $ 2,939,000,000 | $ 3,175,000,000 | |||
Less: Debt discount | (139,400,000) | (178,800,000) | |||
Less: Debt issuance costs | (33,500,000) | $ (1,100,000) | (44,400,000) | ||
Net long-term debt, including current maturities | 2,766,100,000 | 2,951,800,000 | |||
Less: Current maturities | (138,500,000) | (248,100,000) | |||
Net long-term debt | 2,627,600,000 | 2,703,700,000 | |||
Senior Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt, including current maturities | $ 400,000,000 | $ 400,000,000 | |||
Debt instrument, interest rate (as a percent) | 3.77% | 3.07% | |||
Term Loan B Facility due 2023 | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt, including current maturities | $ 1,134,500,000 | $ 1,204,500,000 | |||
Less: Debt discount | (9,300,000) | (12,500,000) | |||
Less: Debt issuance costs | $ (19,200,000) | $ (25,800,000) | |||
Debt instrument, interest rate (as a percent) | 4.27% | 3.57% | |||
Note payable to SMBC due 2016 through 2018 | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt, including current maturities | $ 0 | $ 122,700,000 | |||
Debt instrument, interest rate (as a percent) | 0.00% | 3.09% | |||
Other long-term debt | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt, including current maturities | $ 139,500,000 | $ 182,800,000 | |||
1.00% Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | ||||
1.00% Notes | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt, including current maturities | $ 690,000,000 | 690,000,000 | |||
Less: Debt discount | (41,600,000) | (61,900,000) | |||
Less: Debt issuance costs | $ (5,800,000) | $ (8,600,000) | $ (18,300,000) | ||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | 1.00% | ||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | $ 690,000,000 | ||||
1.625% Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | |||
1.625% Notes | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Gross long-term debt, including current maturities | $ 575,000,000 | $ 575,000,000 | |||
Less: Debt discount | (88,500,000) | (104,400,000) | |||
Less: Debt issuance costs | $ (8,500,000) | $ (10,000,000) | $ (11,100,000) | ||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | 1.625% | ||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | $ 575,000,000 | ||||
Loans with Philippine Bank Due 2020 [Member] | Loans Payable | |||||
Debt Instrument [Line Items] | |||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | $ 0 | ||||
Minimum | Other Debt Obligations | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | ||||
Maximum | Other Debt Obligations | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 4.00% |
Long-Term Debt (Schedule of Ann
Long-Term Debt (Schedule of Annual Maturities Relating to Long-Term Debt) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 138.5 |
2,020 | 690.9 |
2,021 | 400 |
2,022 | 0 |
2,023 | 1,709.6 |
Thereafter | 0 |
Total | $ 2,939 |
Long-Term Debt (Fairchild Trans
Long-Term Debt (Fairchild Transaction Financing) (Details) - USD ($) $ in Millions | Sep. 19, 2016 | Apr. 15, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||
Cash placed in escrow | $ 0 | $ 0 | $ 67.7 | ||
Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Proceeds from lines of credit | $ 200 | ||||
Deutsche Bank AG, New York Branch | Term Loan B Facility due 2023 | |||||
Debt Instrument [Line Items] | |||||
Cash placed in escrow | $ 67.7 |
Long-Term Debt (Amendments to t
Long-Term Debt (Amendments to the Credit Agreement) (Details) - USD ($) $ in Millions | Nov. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 2,939 | |||||
Proceeds from debt issuance | 15.3 | $ 1,106.2 | $ 2,586.9 | |||
Long-term debt | $ 2,939 | $ 3,175 | ||||
1.625% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | ||||
Term Loan B Facility due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 2,400 | |||||
Long-term debt | $ 1,134.5 | $ 1,204.5 | ||||
Debt instrument, interest rate (as a percent) | 4.27% | 3.57% | ||||
Term Loan B Facility due 2023 | Eurocurrency Loans | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from debt issuance | $ 200 | |||||
Term Loan B Facility due 2023 | Eurocurrency Loans | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.25% | |||||
Convertible Debt | 1.625% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from debt issuance | $ 562.1 | |||||
Long-term debt | $ 575 | $ 575 | ||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | 1.625% | |||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,000 | |||||
Revolving Credit Facility | Line of Credit | Eurocurrency Loans | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.75% | 2.75% | ||||
Revolving Credit Facility | Line of Credit | Eurocurrency Loans | Adjusted LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||
Revolving Credit Facility | Line of Credit | Adjustable Rate Loans | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.75% | 1.75% | ||||
Revolving Credit Facility | Line of Credit | Adjustable Rate Loans | Adjusted LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||
Term Loan B Facility due 2023 | Line of Credit | Eurocurrency Loans | Adjusted LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.00% | |||||
Term Loan B Facility due 2023 | Line of Credit | Adjustable Rate Loans | Adjusted LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
Deutsche Bank AG, New York Branch | Term Loan B Facility due 2023 | Eurocurrency Loans | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 3.25% | |||||
Deutsche Bank AG, New York Branch | Term Loan B Facility due 2023 | Adjustable Rate Loans | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.25% | 2.25% |
Long-Term Debt (Debt Refinancin
Long-Term Debt (Debt Refinancing and Prepayment) (Details) - USD ($) | May 31, 2018 | Nov. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 1,100,000 | $ 33,500,000 | $ 44,400,000 | |||||
Third party, legal, and other fees relating to debt refinancing | $ 3,300,000 | |||||||
Repayments of long-term debt | 298,400,000 | 1,831,400,000 | $ 313,800,000 | |||||
Write off of unamortized debt issuance costs | 1,500,000 | |||||||
Debt extinguishment charge | 2,600,000 | |||||||
Proceeds from debt issuance | 15,300,000 | 1,106,200,000 | 2,586,900,000 | |||||
Loss on debt refinancing and prepayment | (4,600,000) | (47,200,000) | (6,300,000) | |||||
Write-off Of Debt Issuance Costs, Third-Party Fees | $ 1,100,000 | |||||||
Gains (Losses) on Restructuring of Debt | 1,100,000 | 3,800,000 | 26,400,000 | |||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs capitalized | 1,900,000 | |||||||
Secured debt | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 70,000,000 | |||||||
Gains (Losses) on Restructuring of Debt | 2,000,000 | |||||||
Term Loan B Facility due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 19,200,000 | 25,800,000 | ||||||
Third party, legal, and other fees relating to debt refinancing | $ 2,400,000 | $ 2,400,000 | 66,600,000 | |||||
Unamortized costs amortized over term of credit facility | 20,600,000 | 20,600,000 | ||||||
Repayments of long-term debt | 200,000,000 | |||||||
Write off of unamortized debt issuance costs | $ 6,700,000 | |||||||
Debt instrument, interest rate (as a percent) | 4.27% | 3.57% | ||||||
Repayments of debt, cash | 12,900,000 | |||||||
Repayments of debt | 575,000,000 | |||||||
Lender fees | 22,000,000 | |||||||
Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Third party, legal, and other fees relating to debt refinancing | 8,200,000 | |||||||
Write off of unamortized debt issuance costs | 1,600,000 | |||||||
Line of Credit | Term Loan B Facility due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized costs amortized over term of credit facility | 12,900,000 | |||||||
Credit facility, maximum borrowing capacity | 400,000,000 | |||||||
Eurocurrency Loans | Term Loan B Facility due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Third party fees | $ 1,400,000 | 2,400,000 | ||||||
Write off of unamortized debt issuance costs | 3,200,000 | |||||||
Debt extinguishment charge | 5,600,000 | $ 4,700,000 | ||||||
Proceeds from debt issuance | $ 200,000,000 | |||||||
1.625% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | ||||||
1.625% Notes | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | 11,100,000 | 11,100,000 | $ 8,500,000 | $ 10,000,000 | ||||
Third party, legal, and other fees relating to debt refinancing | $ 13,700,000 | $ 13,700,000 | ||||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | 1.625% | 1.625% | ||||
Proceeds from debt issuance | $ 562,100,000 |
Long-Term Debt (Description of
Long-Term Debt (Description of 1.00% Notes) (Details) $ / shares in Units, shares in Millions | Jun. 08, 2015USD ($)d$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2018USD ($) | Nov. 30, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 33,500,000 | $ 44,400,000 | $ 1,100,000 | |||
Debt issuance costs | $ 3,300,000 | |||||
Conversion option recorded to equity | 113,100,000 | |||||
Share repurchased value | 315,300,000 | 25,000,000 | ||||
Repayments of long-term debt | 298,400,000 | 1,831,400,000 | $ 313,800,000 | |||
Conversion option, debt discount | (55,700,000) | |||||
Payments for hedge | 0 | 144,700,000 | 0 | |||
Proceeds from issuance of warrants | $ 0 | $ 85,200,000 | $ 0 | |||
1.00% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate (as a percent) | 1.00% | |||||
Convertible Debt | 1.00% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 690,000,000 | |||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | 1.00% | |||
Debt issuance costs | $ 18,300,000 | $ 5,800,000 | $ 8,600,000 | |||
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 | |||||
Conversion price per share (in dollars per share) | $ / shares | $ 18.50 | $ 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 | 1.00% Notes | Embedded Derivative Financial Instruments | ||||||
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 | Convertible Debt | 1.00% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | d | 20 | |||||
Threshold consecutive trading days | d | 30 | |||||
Threshold percentage of stock price trigger (greater than or equal to) | 130.00% | |||||
Debt Conversion Two | Convertible Debt | 1.00% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Threshold consecutive trading days | d | 5 | |||||
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 (Description o_2
Long-Term Debt (Description of 1.65% Notes) (Details) $ / shares in Units, shares in Millions | Mar. 31, 2017USD ($)trading_day$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2018USD ($) | Nov. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ 3,300,000 | ||||||
Capitalized debt issuance costs | $ 33,500,000 | $ 44,400,000 | $ 1,100,000 | ||||
Conversion option recorded to equity | 113,100,000 | ||||||
Proceeds from debt issuance | 15,300,000 | 1,106,200,000 | $ 2,586,900,000 | ||||
Conversion option, debt discount | (55,700,000) | ||||||
Payments for hedge | 0 | 144,700,000 | 0 | ||||
Proceeds from issuance of warrants | $ 0 | 85,200,000 | $ 0 | ||||
Tax impact of coversion option and convertible note hedge and warrant transactions | $ 11,000,000 | ||||||
Senior Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate (as a percent) | 3.77% | 3.07% | |||||
Ability to increase the size of the facility, in increments | $ 59,500,000 | ||||||
1.625% Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | |||||
1.625% Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount of debt | $ 575,000,000 | $ 575,000,000 | |||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | 1.625% | 1.625% | |||
Debt issuance costs | $ 13,700,000 | $ 13,700,000 | |||||
Capitalized debt issuance costs | 11,100,000 | $ 11,100,000 | $ 8,500,000 | $ 10,000,000 | |||
Conversion option recorded to equity | 2,600,000 | ||||||
Proceeds from debt issuance | $ 562,100,000 | ||||||
Conversion price per share (in dollars per share) | $ / shares | $ 20.72 | $ 20.72 | $ 20.72 | ||||
Debt conversion, original debt amount | $ 1,000 | ||||||
Redemption price percentage | 100.00% | ||||||
Conversion option, debt discount | $ 115,700,000 | ||||||
Effective interest rate (as a percent) | 5.38% | 5.38% | |||||
Exercise price, warrants (in dollars per share) | $ / shares | $ 30.70 | $ 30.70 | |||||
Proceeds from issuance of warrants | $ 85,200,000 | ||||||
Debt Conversion One | 1.625% Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Threshold trading days | trading_day | 20 | ||||||
Threshold consecutive trading days | trading_day | 30 | ||||||
Threshold percentage of stock price trigger (greater than or equal to) | 130.00% | ||||||
Debt Conversion Two | 1.625% Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Threshold consecutive trading days | trading_day | 5 | ||||||
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 | ||||||
Embedded Derivative Financial Instruments | 1.625% Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Conversion price per share (in dollars per share) | $ / shares | $ 20.72 | $ 20.72 | |||||
Number of convertible shares | shares | 27.7 | 27.7 | |||||
Payments for hedge | $ 144,700,000 |
Long-Term Debt (Note Payable to
Long-Term Debt (Note Payable to SMBC) (Details) - USD ($) $ in Millions | Jan. 31, 2013 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,939 | $ 3,175 | |
SANYO Electric | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 377.5 | ||
Note payable to SMBC due 2016 through 2018 | |||
Debt Instrument [Line Items] | |||
Period of debt, in years | 7 years | ||
Long-term debt | $ 0 | $ 122.7 |
Long-Term Debt (Fujiitsu Note P
Long-Term Debt (Fujiitsu Note Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 01, 2018 |
Fujitsu Semiconductor Limited | Loans Payable | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 51.6 | $ 50.6 |
Long-Term Debt (U.S. Real Estat
Long-Term Debt (U.S. Real Estate Mortgages) (Details) - Subsidiaries - Loans Payable - USD ($) $ in Millions | Dec. 31, 2018 | Aug. 04, 2014 |
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 29.5 | $ 49.4 |
Debt instrument, interest rate (as a percent) | 3.12% | |
Balloon payment | $ 26.7 |
Long-Term Debt (Philippine Term
Long-Term Debt (Philippine Term Loans) (Details) - Philippine term loans due 2016 through 2020 | 3 Months Ended | ||
Jul. 03, 2015USD ($)loanpayment | Dec. 31, 2018USD ($) | Oct. 02, 2015USD ($) | |
Loans Payable | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 0 | ||
Secured debt | |||
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 | ||
Secured debt | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.00% |
Long-Term Debt (Malaysia Revolv
Long-Term Debt (Malaysia Revolving Line of Credit) (Details) - USD ($) | Sep. 23, 2014 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,939,000,000 | $ 3,175,000,000 | |
Malaysia revolving line of credit | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 25,000,000 | ||
Long-term debt | $ 25,000,000 | ||
Malaysia revolving line of credit | LIBOR | |||
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 (Vietnam Revolvi
Long-Term Debt (Vietnam Revolving Line of Credit) (Details) - USD ($) | Sep. 03, 2014 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,939,000,000 | $ 3,175,000,000 | |
Vietnam revolving line of credit | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 25,000,000 | ||
Long-term debt | $ 10,700,000 | ||
Vietnam revolving line of credit | LIBOR | |||
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 (Capital Lease O
Long-Term Debt (Capital Lease Obligations) (Details) - Capital lease obligations - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 0.9 | $ 4.2 |
Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (as a percent) | 0.98% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (as a percent) | 5.17% |
Earnings Per Share and Equity_2
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, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||||||||||
Net income attributable to ON Semiconductor Corporation | $ 165.6 | $ 166.9 | $ 155.3 | $ 139.6 | $ 529.9 | $ 108.7 | $ 93.9 | $ 78.2 | $ 627.4 | $ 810.7 | $ 182.1 |
Basic weighted average common shares outstanding | 423.8 | 421.9 | 415.2 | ||||||||
Add: Incremental shares for: | |||||||||||
Dilutive effect of share-based awards (in shares) | 4.3 | 5.5 | 3.8 | ||||||||
Dilutive effect of convertible notes (in shares) | 7.8 | 0.9 | 1 | ||||||||
Diluted weighted average common shares outstanding | 435.9 | 428.3 | 420 | ||||||||
Net income per common share attributable to ON Semiconductor Corporation: | |||||||||||
Basic (in dollars per share) | $ 1.48 | $ 1.92 | $ 0.44 | ||||||||
Diluted (in dollars per share) | $ 0.39 | $ 0.38 | $ 0.35 | $ 0.31 | $ 1.22 | $ 0.25 | $ 0.22 | $ 0.18 | $ 1.44 | $ 1.89 | $ 0.43 |
Earnings Per Share and Equity_3
Earnings Per Share and Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 01, 2014 | Feb. 15, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2018 | Mar. 31, 2017 | Jun. 08, 2015 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Anti-dilutive shares (in shares) | 600,000 | 200,000 | 1,700,000 | |||||
Amount remaining to be repurchased under the stock repurchase program | $ 1,500 | $ 603.2 | $ 628.2 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 288,200,000 | |||||||
Common stock repurchased | 315 | 25 | 0 | |||||
Payments of tax withholding for restricted shares | $ 31.6 | 28.1 | 12.3 | |||||
Shares reissued or retired | 0 | |||||||
Non-controlling interest in consolidated subsidiary | $ 22.5 | 22.2 | ||||||
Income attributable to non-controlling interests | 2.5 | 2.3 | 2.4 | |||||
Dividend to non-controlling shareholder | $ (2.2) | $ (1.9) | $ (4.3) | |||||
Leshan | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Ownership percentage | 80.00% | |||||||
OSA | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Ownership percentage | 50.00% | 10.00% | ||||||
Equity Method Investments | $ 24.6 | |||||||
Required Increase in Ownership Percentage Percentage | 100.00% | |||||||
Treasury Stock | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Shares withheld for payment of taxes (in shares) | 1,343,961 | 1,750,182 | 1,281,159 | |||||
Noncontrolling Interest | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Dividend to non-controlling shareholder | $ (2.2) | $ (1.9) | $ (4.3) | |||||
2014 Program | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Cash allocation policy, target percentage to return to shareholders | 80.00% | |||||||
Amount remaining to be repurchased under the stock repurchase program | $ 1,000 | |||||||
Period in which the company intends to repurchase the shares | 4 years | |||||||
2018 Program | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Amount remaining to be repurchased under the stock repurchase program | $ 1,500 | |||||||
Period in which the company intends to repurchase the shares | 4 years | |||||||
1.00% Notes | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 1.00% | |||||||
1.00% Notes | Convertible Debt | ||||||||
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% | |||||
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 | $ 18.50 | ||||||
1.625% Notes | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | ||||||
1.625% Notes | Convertible Debt | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | 1.625% | |||||
Average price of common stock to exceed to include effect of additional potential shares | $ 30.70 | |||||||
Conversion price per share (in dollars per share) | $ 20.72 | $ 20.72 | ||||||
OSA | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | |||||||
Subsequent Event | 2018 Program | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Stock Repurchased During Period, Shares | 4,200,000 | |||||||
Common stock repurchased | $ 71.7 |
Earnings Per Share and Equity_4
Earnings Per Share and Equity (Schedule of Share Repurchase Program) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Number of repurchased shares | 16,800,000 | 1,600,000 | 0 |
Beginning accrued share repurchases | $ 0 | $ 0 | $ 0 |
Aggregate purchase price | 315 | 25 | 0 |
Fees, commissions and other expenses | 0.3 | 0 | 0 |
Less: ending accrued share repurchases | 0 | 0 | 0 |
Total cash used for share repurchases | $ 315.3 | $ 25 | $ 0 |
Weighted-average purchase price per share (in dollars per share) | $ 18.78 | $ 15.35 | $ 0 |
Available for future purchases at period end | $ 1,500 | $ 603.2 | $ 628.2 |
Treasury shares reissued or retired | 0 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense before income taxes | $ 78.3 | $ 69.8 | $ 56.1 | |
Related income tax benefits | (16.4) | (24.4) | 0 | |
Share-based compensation expense, net of taxes | $ 61.9 | $ 45.4 | $ 56.1 | |
U.S. federal statutory rate (as a percent) | 21.00% | 35.00% | 35.00% | |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense before income taxes | $ 7 | $ 6 | $ 8 | |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense before income taxes | 14.3 | 12.5 | 11.1 | |
Selling and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense before income taxes | 14.1 | 11.7 | 9.8 | |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense before income taxes | $ 42.9 | $ 39.6 | $ 27.2 | |
Accounting Standards Update 2016-09 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Cumulative Effect on Retained Earnings, Tax | $ 68.1 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | May 17, 2017 | May 20, 2015 | May 15, 2012 | Feb. 17, 2000 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 17, 2010 | May 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total Intrinsic value of stock options exercised | $ 12,500,000 | ||||||||
Cash received from exercise of stock options | 5,700,000 | $ 18,000,000 | $ 14,900,000 | ||||||
Proceeds for the issuance of common stock under the ESPP | $ 25,000,000 | $ 23,600,000 | $ 15,000,000 | ||||||
Employee stock options granted in period | 0 | 0 | 0 | ||||||
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) | 300,000 | 1,100,000 | |||||||
Weighted average exercise price of options vested and expected to vest (in dollars per share) | $ 6.41 | $ 6.95 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 7.13 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 2,800,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (800,000) | ||||||||
Share-based compensation expense before income taxes | $ 78,300,000 | $ 69,800,000 | $ 56,100,000 | ||||||
2000 Stock Incentive Plan | |||||||||
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% | ||||||||
2000 Stock Incentive Plan | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period (in years) | 3 years | ||||||||
Term of grant agreement (in years) | 7 years | ||||||||
2000 Stock Incentive Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period (in years) | 4 years | ||||||||
Term of grant agreement (in years) | 10 years | ||||||||
Amended And Restated Stock Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock reserved and available for grant (in shares) | 87,000,000 | ||||||||
Shares available for issuance under the plan (in shares) | 27,900,000 | 33,000,000 | |||||||
Aggregate of common stock available for grant (in shares) | 33,700,000 | ||||||||
Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Cash received from exercise of stock options | $ 5,700,000 | ||||||||
Proceeds for the issuance of common stock under the ESPP | 24,900,000 | ||||||||
Time Based Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized share-based compensation expense on non-vested stock awards | 78,800,000 | ||||||||
Compensation expense recognized on restricted stock units | $ 42,100,000 | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Recognition period for compensation expense (in years) | 1 year 5 months 6 days | ||||||||
Aggregate of common stock available for grant (in shares) | 6,500,000 | ||||||||
Restricted Stock | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity awards granted in period (in shares) | 100,000 | ||||||||
Weighted average grant date fair value (In dollars per share) | $ 25.51 | ||||||||
Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate of common stock available for grant (in shares) | 28,500,000 | 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) | 1,500,000 | 1,900,000 | 1,800,000 | ||||||
Increase in number of shares available for grant | 5,000,000 | 5,500,000 | |||||||
Employee Stock Purchase Plan | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense before income taxes | $ 1,800,000 | ||||||||
Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized share-based compensation expense on non-vested stock awards | $ 56,700,000 | ||||||||
Pre-vesting forfeitures (as a percent) | 5.00% | 5.00% | 5.00% | ||||||
Equity awards granted in period (in shares) | 3,200,000 | ||||||||
Compensation expense recognized on restricted stock units | $ 70,300,000 | ||||||||
Weighted average grant date fair value (In dollars per share) | $ 23.90 | ||||||||
Restricted Stock Units | Officers And Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity awards granted in period (in shares) | 1,100,000 | ||||||||
Restricted Stock Units | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period (in years) | 3 years | ||||||||
Performance Based Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized share-based compensation expense on non-vested stock awards | $ 22,100,000 | ||||||||
Option Price Above Closing Price Of Common Stock At End Of Quarter [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 16.51 |
Share-Based Compensation (Sum_2
Share-Based Compensation (Summary Of Restricted Stock Units Transactions) (Details) - Restricted Stock Units shares in Millions | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted Stock Activity [Roll Forward] | |
Nonvested shares of restricted stock units beginning (in shares) | shares | 9.8 |
Number of Shares, Granted (in shares) | shares | 3.2 |
Number of Shares, Achieved (in shares) | shares | 0.7 |
Number of Shares, Released (in shares) | shares | (4.5) |
Number of Shares, Canceled (in shares) | shares | (0.6) |
Nonvested shares of restricted stock units ending (in shares) | shares | 8.6 |
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 | $ 12.63 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 23.90 |
Weighted Average Grant Date Fair Value, Achieved (in dollars per share) | $ / shares | 15.26 |
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares | 13.09 |
Weighted Average Grant Date Fair Value, Canceled (in dollars per share) | $ / shares | 15.48 |
Weighted Average Grant Date Fair Value, Nonvested shares of restricted stock units ending (in dollars per share) | $ / shares | $ 16.59 |
Share-Based Compensation Share-
Share-Based Compensation Share- Based Compensation (Phantom) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement By Share Based Payment Award, Options Pre-Vesting Forfeitures Estimated | 5.00% | 5.00% | 5.00% |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Net Periodic Pension Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan [Abstract] | |||
Service cost | $ 9.6 | $ 10 | $ 9 |
Interest cost | 4.7 | 4.3 | 4.5 |
Expected return on plan assets | (6.1) | (5.5) | (3.9) |
Curtailment gain | (0.3) | 0 | 0 |
Actuarial and other loss | 6.1 | 1.9 | 10.1 |
Total net periodic pension cost | $ 14 | $ 10.7 | $ 19.7 |
Discount rate (as a percent) | 1.56% | 1.66% | 1.60% |
Expected return on plan assets (as a percent) | 3.18% | 3.22% | 3.20% |
Rate of compensation increase (as a percent) | 3.22% | 3.22% | 3.05% |
Employee Benefit Plans (Summa_2
Employee Benefit Plans (Summary of Status Of Foreign Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in projected benefit obligation | |||
Projected benefit obligation at the beginning of the year | $ 292.7 | $ 261.8 | |
Service cost | 9.6 | 10 | $ 9 |
Interest cost | 4.7 | 4.3 | 4.5 |
Net actuarial (gain) loss | (6.1) | 6.4 | |
Benefits paid by plan assets | (5.6) | (4.7) | |
Benefits paid by the Company | (1.7) | (4.2) | |
Curtailments and settlements | (0.6) | 0 | |
Translation and other (gain) loss | (2.2) | 19.1 | |
Projected benefit obligation at the end of the year | 290.8 | 292.7 | 261.8 |
Accumulated benefit obligation at the end of the year | 249.2 | 245.8 | |
Change in plan assets | |||
Fair value of plan assets at the beginning of the year | 183.4 | 159.7 | |
Actual return on plan assets | (6.1) | 10 | |
Benefits paid from plan assets | (5.6) | (4.7) | |
Employer contributions | 5 | 6 | |
Settlements | (0.3) | 0 | |
Translation and other gain (loss) | (1.5) | 12.4 | |
Fair value of plan assets at the end of the year | 174.9 | 183.4 | $ 159.7 |
Plans with underfunded or non-funded projected benefit obligation | |||
Projected benefit obligation | 282.6 | 283.3 | |
Fair value of plan assets | 166.2 | 173.7 | |
Plans with underfunded or non-funded accumulated benefit obligation | |||
Accumulated benefit obligation | 181.4 | 174.8 | |
Fair value of plan assets | 102.1 | 104.3 | |
Amounts recognized in the balance sheet consist of | |||
Non-current assets | 0.3 | 0.1 | |
Current liabilities | (0.2) | (0.2) | |
Non-current liabilities | (116) | (109.2) | |
Funded status | $ (115.9) | $ (109.3) |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total underfunded status | $ 115,900,000 | ||
Expected company contribution in the current period | $ 15,300,000 | ||
Employer contribution as percentage of employee contribution | 100.00% | ||
Annual contribution limit per employee | $ 11,000 | ||
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 18.00% | 20.00% | |
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 19.00% | 18.00% | |
Investment Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 46.00% | 45.00% | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 3.00% | 3.00% | |
Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets of foreign plans investment in equity securities | 14.00% | 14.00% | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Compensation expense recognized | $ 19,200,000 | $ 18,400,000 | $ 14,000,000 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Compensation expense recognized | $ 20,500,000 | $ 16,800,000 | $ 8,900,000 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employee contribution, basis for employer contribution | 0.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employee contribution, basis for employer contribution | 4.00% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value Measurement of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 174.9 | $ 183.4 | $ 159.7 |
Cash/Money Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4.6 | 4.9 | |
Foreign Government/Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 17.3 | 20.1 | |
Corporate Bonds, Debentures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 33.3 | 32.5 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32.3 | 36.8 | |
Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 7.3 | 6.7 | |
Investment and Insurance Annuity Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 80.1 | 82.4 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 21.9 | 25 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash/Money Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4.6 | 4.9 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign Government/Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 17.3 | 20.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds, Debentures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Investment and Insurance Annuity Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 102.4 | 103.2 | |
Significant Observable Inputs (Level 2) | Cash/Money Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Foreign Government/Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Corporate Bonds, Debentures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 33.3 | 32.5 | |
Significant Observable Inputs (Level 2) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32.3 | 36.8 | |
Significant Observable Inputs (Level 2) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 7.3 | 6.7 | |
Significant Observable Inputs (Level 2) | Investment and Insurance Annuity Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 29.5 | 27.2 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 50.6 | 55.2 | |
Significant Unobservable Inputs (Level 3) | Cash/Money Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Foreign Government/Treasury Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate Bonds, Debentures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Investment and Insurance Annuity Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 50.6 | $ 55.2 | $ 47.2 |
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, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | $ 183.4 | $ 159.7 |
Actual return on plan assets | (6.1) | 10 |
Foreign currency impact | (1.5) | 12.4 |
Fair value of plan assets at the end of the year | 174.9 | 183.4 |
Corporate Bonds, Debentures | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 32.5 | |
Fair value of plan assets at the end of the year | 33.3 | 32.5 |
Investment and Insurance Contacts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 82.4 | |
Fair value of plan assets at the end of the year | 80.1 | 82.4 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 55.2 | |
Fair value of plan assets at the end of the year | 50.6 | 55.2 |
Significant Unobservable Inputs (Level 3) | Corporate Bonds, Debentures | ||
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 | |
Fair value of plan assets at the end of the year | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Investment and Insurance Contacts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at the beginning of the year | 55.2 | 47.2 |
Actual return on plan assets | (0.5) | 1.5 |
Purchase, sales and settlements | (2) | (0.3) |
Foreign currency impact | (2.1) | 6.8 |
Fair value of plan assets at the end of the year | $ 50.6 | $ 55.2 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan [Abstract] | |
2,019 | $ 4.7 |
2,020 | 6.4 |
2,021 | 10.6 |
2,022 | 12 |
2,023 | 15.6 |
Five years thereafter | 95.9 |
Total | $ 145.2 |
Commitments and Contingencies_2
Commitments and Contingencies (Operating Leases Future Minimum Payments Receivable) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 36.8 |
2,020 | 27.6 |
2,021 | 21.9 |
2,022 | 16.8 |
2,023 | 12.3 |
Thereafter | 45.4 |
Total | 160.8 |
Expected sublease income | $ 12.3 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) | Nov. 09, 2018USD ($) | Sep. 29, 2017patent | Mar. 09, 2017patent | Sep. 19, 2016 | Aug. 11, 2016patent | Oct. 14, 2008claim | Jan. 31, 2019patent | Nov. 30, 2018USD ($) | Nov. 30, 2017patent | Nov. 30, 2016patent | Dec. 31, 2015USD ($) | May 31, 2015USD ($) | Nov. 30, 2014USD ($) | Mar. 31, 2013USD ($) | May 31, 2012patent | Apr. 30, 2012claim | Jan. 31, 2011USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2018USD ($)patentreviewappealsclaim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)patent | Dec. 31, 2014USD ($)patent | Dec. 31, 2009patent | Dec. 31, 2006USD ($) |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Appeals filed | appeals | 1 | |||||||||||||||||||||||
Total rent expense | $ | $ 43,600,000 | $ 45,300,000 | $ 31,100,000 | |||||||||||||||||||||
Availability under senior revolving credit facility | $ | 15,000,000 | |||||||||||||||||||||||
Outstanding guarantees and letters of credit | $ | 6,100,000 | |||||||||||||||||||||||
Guarantees related to capital lease obligations | $ | $ 68,600,000 | |||||||||||||||||||||||
Number of patents requiring declaratory judgment | claim | 2 | |||||||||||||||||||||||
Patents reviewed and found unpatentable | review | 2 | |||||||||||||||||||||||
Loss Contingency, Claims Dismissed, Number | claim | 1 | |||||||||||||||||||||||
Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Maximum remediation cost recoveries receivable | $ | $ 150,000,000 | |||||||||||||||||||||||
Power Integrations, Inc. | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of outstanding proceedings | claim | 8 | |||||||||||||||||||||||
Patents reviewed and found unpatentable | review | 1 | |||||||||||||||||||||||
Power Integrations, Inc. | Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of outstanding proceedings | claim | 5 | |||||||||||||||||||||||
Power Integrations, Delaware, 2004 | Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation settlement, amount awarded to other party | $ | $ 12,200,000 | $ 6,100,000 | $ 34,000,000 | |||||||||||||||||||||
Power Integrations, Delaware, 2008 | Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation settlement, amount awarded to other party | $ | $ 24,300,000 | |||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | claim | 2 | |||||||||||||||||||||||
Gain contingency, number of patents found infringed upon | claim | 1 | |||||||||||||||||||||||
Loss contingency, number of patents found not infringed | claim | 2 | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | claim | 4 | |||||||||||||||||||||||
Power Integrations, Northern District of California, 2009 | Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation settlement, amount awarded to other party | $ | $ 139,800,000 | $ 105,000,000 | ||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | 3 | |||||||||||||||||||||||
Loss contingency, number of patents infringed upon | 2 | |||||||||||||||||||||||
Litigation settlement, amount vacated | $ | $ 105,000,000 | |||||||||||||||||||||||
Litigation settlement interest | $ | $ 7,000,000 | |||||||||||||||||||||||
Power Integrations, Delaware, 2012 | Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation settlement, amount awarded to other party | $ | $ 719,029.10 | $ 100,000 | ||||||||||||||||||||||
Loss contingency, number of patents found not infringed | 1 | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | 5 | |||||||||||||||||||||||
Litigation settlement, amount awarded from other party | $ | $ 2,400,000 | |||||||||||||||||||||||
Power Integrations, Northern District of California, 2015 | Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | 4 | |||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | 2 | |||||||||||||||||||||||
Power Integrations, Arizona, 2016 | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | 6 | |||||||||||||||||||||||
Number of patents requiring declaratory judgment | 3 | |||||||||||||||||||||||
Power Integrations, Northern District of California, 2016 | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | 6 | |||||||||||||||||||||||
Number of patents requiring declaratory judgment | 2 | |||||||||||||||||||||||
Power Integrations, Delaware, 2017 | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | 6 | 6 | ||||||||||||||||||||||
Loss contingency, number of patents allegedly infringed upon | 7 | |||||||||||||||||||||||
Gain Contingency, Patents Found Not Infringed upon, Number | 2 | |||||||||||||||||||||||
Patent Claims Dropped, Number | 1 | |||||||||||||||||||||||
Power Integrations 2017, Taiwan [Member] | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | 3 | |||||||||||||||||||||||
Power Integrations, Inc., USPTO | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Patents reviewed and found unpatentable | review | 2 | |||||||||||||||||||||||
Inter party review | review | 5 | |||||||||||||||||||||||
Letter of Credit | Senior Revolving Credit Facility | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Credit commitment outstanding | $ | $ 1,000,000 | |||||||||||||||||||||||
Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Business acquisition, maximum indemnification period | 6 years | |||||||||||||||||||||||
Minimum | Power Integrations, Inc. | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss contingency, estimate of possible loss | $ | 4,000,000 | |||||||||||||||||||||||
Maximum | Power Integrations, Inc. | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss contingency, estimate of possible loss | $ | $ 20,000,000 | |||||||||||||||||||||||
Maximum | Power Integrations, Delaware, 2004 | Fairchild | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Value of sales and imports of affected products | $ | $ 750,000 | |||||||||||||||||||||||
Subsequent Event | Power Integrations, Delaware, 2017 | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain contingency, number of patents allegedly infringed upon | 4 | |||||||||||||||||||||||
Patent Claims Dropped, Number | 2 |
Commitments and Contingencies_4
Commitments and Contingencies (Future Minimum Purchase Obligations Under Non-cancelable Agreements) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 373.7 |
2,020 | 38.2 |
2,021 | 23 |
2,022 | 9.3 |
2,023 | 8.2 |
Thereafter | 10.9 |
Total | $ 463.3 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Quoted Prices in Active Markets (Level 1) | ||
Liabilities: | ||
Contingent consideration | $ 0 | |
Quoted Prices in Active Markets (Level 1) | Demand and time deposits | ||
Assets: | ||
Cash and cash equivalents | $ 21.2 | 71.7 |
Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0.2 | 0.2 |
Significant Observable Inputs (Level 2) | ||
Liabilities: | ||
Contingent consideration | 0 | |
Significant Observable Inputs (Level 2) | Demand and time deposits | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Significant Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value Inputs (Level 3) | ||
Liabilities: | ||
Contingent consideration | 2.3 | |
Fair Value Inputs (Level 3) | Demand and time deposits | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value Inputs (Level 3) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Estimate of Fair Value Measurement | ||
Liabilities: | ||
Contingent consideration | 2.3 | |
Estimate of Fair Value Measurement | Demand and time deposits | ||
Assets: | ||
Cash and cash equivalents | 21.2 | 71.7 |
Estimate of Fair Value Measurement | Money market funds | ||
Assets: | ||
Cash and cash equivalents | $ 0.2 | $ 0.2 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 08, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loss on sale or disposal of fixed assets | $ 2,400,000 | $ 3,900,000 | $ 1,500,000 | ||
Cost method investments, fair value | 7,500,000 | 12,600,000 | |||
Non-financial Assets | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Non-financial assets | $ 0 | $ 0 | |||
1.00% Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | ||||
1.625% Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | |||
Convertible Debt | 1.00% Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | 1.00% | ||
Convertible Debt | 1.625% Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | 1.625% | ||
AXSEM | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loss on sale or disposal of fixed assets | $ 3,900,000 | ||||
Contingent consideration | $ 1,700,000 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Long-Term Debt, Including Current Portion) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion, Carrying Amount | $ 2,939 | $ 3,175 |
Convertible Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion, Carrying Amount | 1,120.6 | 1,080.1 |
Long-term debt, including current portion, Fair Value | 1,368.5 | 1,596.7 |
Long-term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion, Carrying Amount | 1,615.1 | 1,833.2 |
Long-term debt, including current portion, Fair Value | $ 1,585.9 | $ 1,845.4 |
Fair Value Measurements (Adjust
Fair Value Measurements (Adjustments to Fair Value of Non-Financial Assets) (Details) - Fair Value, Measurements, Nonrecurring - Fair Value Inputs (Level 3) - Changes Measurement - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment held-for-sale or disposal (Level 3) | $ 2.4 | $ 7.9 | $ 0.5 |
Goodwill and IPRD (Level 3) | 6.8 | 13.1 | 2.2 |
Total assets | $ 9.2 | $ 21 | $ 2.7 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 08, 2015 | |
Derivatives, Fair Value [Line Items] | |||||
Amount of cash flow hedge ineffectiveness | $ 0 | ||||
Foreign exchange contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative amount | 157,300,000 | $ 130,500,000 | |||
Realized and unrealized foreign currency transaction gain (loss) | (8,000,000) | (6,300,000) | $ 700,000 | ||
Interest rate swap 2 | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative amount | $ 1,000,000,000 | $ 750,000,000 | |||
1.00% Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | ||||
1.625% Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | |||
Convertible Debt | 1.00% Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.00% | 1.00% | 1.00% | ||
Convertible Debt | 1.625% Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 1.625% | 1.625% | 1.625% |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Net Foreign Exchange Positions) (Details) - Foreign exchange contract - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments [Line Items] | ||
Buy (Sell) | $ 142.3 | $ (15.9) |
Notional Amount | 157.3 | 130.5 |
Other currencies - Buy | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 47.1 | 18 |
Notional Amount | 47.1 | 18 |
Other currencies - Sell | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | (7.5) | (10.3) |
Notional Amount | 7.5 | 10.3 |
Euro | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 13.1 | (22.9) |
Notional Amount | 13.1 | 22.9 |
Japanese Yen | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 29.9 | (40) |
Notional Amount | 29.9 | 40 |
Philippine Peso | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 30.1 | 26.4 |
Notional Amount | 30.1 | 26.4 |
Chinese Yuan | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 20.4 | 5.3 |
Notional Amount | 20.4 | 5.3 |
Czech Koruna | ||
Financial Instruments [Line Items] | ||
Buy (Sell) | 9.2 | 7.6 |
Notional Amount | $ 9.2 | $ 7.6 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (181.8) | $ (270.1) | $ (287) |
Foreign | 936.8 | 817.6 | 467.6 |
Income before income taxes | $ 755 | $ 547.5 | $ 180.6 |
Income Taxes (Provision (Benefi
Income Taxes (Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ (2) | $ 26.3 | $ (0.1) |
State and local | (2.2) | 0.2 | 0.1 |
Foreign | 55.3 | 53.1 | 34.4 |
Current, Provision (benefit) for income taxes | 51.1 | 79.6 | 34.4 |
Deferred: | |||
Federal | 99.4 | (356.3) | 60.8 |
State and local | 0 | 0.4 | 0 |
Foreign | (25.4) | 10.8 | (99.1) |
Deferred, Provision (benefit) for income taxes | 74 | (345.1) | (38.3) |
Provision (benefit) for income taxes | $ 125.1 | $ (265.5) | $ (3.9) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Dec. 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Line Items] | |||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ 31.8 | $ (449.9) | |||
Executive Compensation Deduction | $ 1.8 | ||||
Effective income tax rate (benefit) (as a percent) | 16.60% | (48.50%) | (2.20%) | ||
U.S. federal statutory rate (as a percent) | 21.00% | 35.00% | 35.00% | ||
Balance of unrecognized tax benefit | $ 112.2 | $ 114.8 | $ 136.7 | $ 33.5 | |
Unrecognized tax position, that would affect the annual effective tax rate | 82.6 | ||||
Unrecognized Tax Benefits that would impact Deferred Taxes | 29.6 | ||||
Estimate of decrease in unrecognized tax positions | 3.3 | ||||
Interest and penalties recognized | 0.8 | (1.5) | (0.5) | ||
Accrued interest and penalties | 5.1 | 5.9 | 4.4 | ||
Expense for mandatory repatriation tax | 1.5 | 1.5 | 207.1 | ||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 768.9 | 1,198.6 | |||
Tax credit carryforwards | 83.7 | 46 | |||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 801 | 790.3 | |||
Tax credit carryforwards | 115.8 | 107.2 | |||
Foreign | |||||
Income Taxes [Line Items] | |||||
Executive Compensation Deduction | $ 1.8 | ||||
Net operating loss carryforwards | 734.4 | 1,103 | |||
Tax credit carryforwards | 68.8 | $ 65.3 | |||
National Tax Agency, Japan | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 172.6 | ||||
Expiration of operating loss carryforwards | $ 369.2 | ||||
Reversal of valuation allowance | $ 89.4 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The U.S. Federal Statutory Income Tax Rate) (Details) - USD ($) $ in Millions | Dec. 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Line Items] | ||||
Executive Compensation Deduction | $ 1.8 | |||
U.S. federal statutory rate (as a percent) | 21.00% | 35.00% | 35.00% | |
Increase (decrease) resulting from: | ||||
State and local taxes, net of federal tax benefit (as a percent) | (1.00%) | 2.20% | (3.60%) | |
Impact of U.S. Tax Reform and related effect (as a percent) | 4.70% | (82.20%) | (0.00%) | |
Impact of foreign operations (as a percent) | (1.20%) | (1.50%) | (8.10%) | |
Reversal of prior years’ indefinite reinvestment assertion (as a percent) | 0.00% | 0.00% | 172.10% | |
Impact of U.S. tax method changes (as a percent) | (6.40%) | 0.00% | 0.00% | |
Change in valuation allowance and related effects (as a percent) | 0.60% | 0.40% | (190.70%) | |
Nondeductible acquisition costs (as a percent) | 0.00% | 0.00% | 1.90% | |
Nondeductible share-based compensation costs (as a percent) | (0.50%) | (1.60%) | 0.70% | |
US federal R&D credit (as a percent) | (1.10%) | (1.50%) | (10.10%) | |
Other (as a percent) | 0.50% | 0.70% | 0.60% | |
Effective income tax rate (benefit) (as a percent) | 16.60% | (48.50%) | (2.20%) | |
Benefit for reduction in deferred tax liability for undistributed foreign earnings | $ 31.8 | $ 744.1 | ||
Benefit for reduction in deferred tax liability for undistributed foreign earnings (as a percent) | 4.20% | 135.90% | ||
Benefit for release of valuation allowance on federal foreign tax credit carryforwards | $ 33 | |||
Executive Compensation Deduction (as a percent) | 0.30% | |||
Benefit for release of valuation allowance on federal foreign tax credit carryforwards (as a percent) | 6.00% | |||
Expense for mandatory repatriation tax | $ 1.5 | $ 1.5 | $ 207.1 | |
Expense for mandatory repatriation tax (as a percent) | 0.20% | 37.80% | ||
Expense from change in federal tax rate, impact to deferred tax assets | $ 120.1 | |||
Expense from change in federal tax rate, impact to deferred tax assets (as a percent) | 21.90% | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 48.2 | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Executive Compensation Deduction | $ 1.8 | |||
Increase (decrease) resulting from: | ||||
Change in valuation allowance, expense | $ 135.2 | |||
Change in valuation allowance, expense, percent | 17.90% | |||
Change in valuation allowance, benefit | $ (135.2) | |||
Change in valuation allowance, benefit, percent | (17.90%) |
Income Taxes (Tax Effects Of Te
Income Taxes (Tax Effects Of Temporary Differences) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss and tax credit carryforwards | $ 584.9 | $ 738.4 |
Tax-deductible goodwill and amortizable intangibles | (29.4) | (29.1) |
Reserves and accruals | 57.4 | 49.8 |
Property, plant and equipment | (63.5) | (42.8) |
Inventories | 20.2 | 24.5 |
Undistributed earnings of foreign subsidiaries | (48.7) | (32.5) |
Share-based compensation | 7.7 | 9.2 |
Pension | 24.3 | 21.1 |
Debt financing costs | (8.5) | (9.9) |
Other | 14.5 | 17.6 |
Deferred tax assets and liabilities before valuation allowance | 558.9 | 746.3 |
Valuation allowance | (347.5) | (462.3) |
Net deferred tax asset | $ 211.4 | $ 284 |
Income Taxes (Activity For Unre
Income Taxes (Activity For Unrecognized Gross Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecognized Gross Tax Benefits | |||
Balance at beginning of year | $ 114.8 | $ 136.7 | $ 33.5 |
Acquired balances | 0 | 0 | 86.9 |
Additions based on tax positions related to the current year | 7.4 | 23.6 | 4.6 |
Additions for tax positions of prior years | 2.8 | 4.7 | 13.7 |
Reductions for tax positions of prior years | (1.9) | (1.6) | (0.4) |
Lapse of statute | (10.9) | (16.3) | (1.6) |
Settlements | 0 | (4.9) | 0 |
Change in rate due to U.S. Tax Reform | 0 | (27.4) | 0 |
Balance at end of year | $ 112.2 | $ 114.8 | $ 136.7 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | $ 2,801 | $ 1,845 | $ 1,631.9 |
Other comprehensive income (loss) prior to reclassifications | (0.6) | 9.2 | |
Amounts reclassified from accumulated other comprehensive loss | 3.3 | 0.4 | |
Other comprehensive income (loss) | 2.7 | 9.6 | (7.9) |
Balance, ending | 3,194.1 | 2,801 | 1,845 |
Effects of cash flow hedges, tax amount | 0.5 | 0.7 | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | (43.2) | (50.2) | |
Other comprehensive income (loss) prior to reclassifications | 0.7 | 7 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Other comprehensive income (loss) | 0.7 | 7 | |
Balance, ending | (42.5) | (43.2) | (50.2) |
Effects of Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | 2.6 | 0 | |
Other comprehensive income (loss) prior to reclassifications | (1.3) | 2.2 | |
Amounts reclassified from accumulated other comprehensive loss | 3.3 | 0.4 | |
Other comprehensive income (loss) | 2 | 2.6 | |
Balance, ending | 4.6 | 2.6 | 0 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning | (40.6) | (50.2) | (42.3) |
Balance, ending | $ (37.9) | $ (40.6) | $ (50.2) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), tax | $ 0.8 | $ 0.2 |
Changes in Accumulated Other _5
Changes in Accumulated Other Comprehensive Loss (Schedule of Reclassifications from Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income and expense | $ (7.1) | $ (8.8) | $ (11.3) |
Net income | 629.9 | 813 | $ 184.5 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income and expense | (3.3) | (0.4) | |
Net income | $ (3.3) | $ (0.4) |
Supplemental Disclosures (Sched
Supplemental Disclosures (Schedule of Cash Flow, Supplemental Disclosures and Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-cash financing activities: | ||||
Debt issuance costs paid directly from escrow accounts | $ 0 | $ 0 | $ 46 | |
Capital expenditures in accounts payable and other liabilities | 233.9 | 165.6 | 105.9 | |
Debt assumed through purchase of equity interest and assets | 50.6 | 0 | 0 | |
Cash (received) paid for: | ||||
Interest income | (6.1) | (3) | (4.5) | |
Interest expense | 80 | 92.1 | 106.7 | |
Income taxes | 53.2 | 67.8 | 27.3 | |
Adoption of ASU 2016-18 | ||||
Cash and cash equivalents | 1,069.6 | 949.2 | 1,028.1 | |
Restricted cash (included in other current assets) | 17.5 | 17.4 | 17.7 | |
Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows | $ 1,087.1 | $ 966.6 | $ 1,045.8 | $ 637.2 |
Supplementary Financial Infor_3
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, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 1,503.1 | $ 1,541.7 | $ 1,455.9 | $ 1,377.6 | $ 1,377.5 | $ 1,390.9 | $ 1,338 | $ 1,436.7 | $ 5,878.3 | $ 5,543.1 | $ 3,906.9 |
Gross Profit (exclusive of the amortization of acquisition-related intangible assets) | 569.7 | 596.6 | 555 | 517.4 | 516.5 | 524 | 492 | 503.1 | 2,238.7 | 2,035.6 | 1,300.5 |
Net income attributable to ON Semiconductor Corporation | $ 165.6 | $ 166.9 | $ 155.3 | $ 139.6 | $ 529.9 | $ 108.7 | $ 93.9 | $ 78.2 | $ 627.4 | $ 810.7 | $ 182.1 |
Diluted net income per common share attributable to ON Semiconductor Corporation (in dollars per share) | $ 0.39 | $ 0.38 | $ 0.35 | $ 0.31 | $ 1.22 | $ 0.25 | $ 0.22 | $ 0.18 | $ 1.44 | $ 1.89 | $ 0.43 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Valuation and Qualifying Accounts) (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 462.3 | $ 474.1 | $ 735.7 |
Charged to Costs and Expenses | 4.6 | (30.6) | (356) |
Charged to Other Accounts | 15.8 | 18.8 | 94.4 |
Deductions/Write-offs | (135.2) | 0 | 0 |
Balance at End of Period | 347.5 | $ 462.3 | $ 474.1 |
Fairchild | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Charged to Other Accounts | $ 81.6 |
Uncategorized Items - on-201812
Label | Element | Value |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,400,000) |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 68,100,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,100,000 |