Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2013 | Oct. 21, 2013 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 27-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FSL | |
Entity Registrant Name | Freescale Semiconductor, Ltd. | |
Entity Central Index Key | 1392522 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 257,859,501 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | ||||
Income Statement [Abstract] | ||||||||
Net sales | $1,085 | $1,009 | $3,104 | $2,988 | ||||
Cost of sales | 612 | 585 | 1,792 | 1,722 | ||||
Gross margin | 473 | 424 | 1,312 | 1,266 | ||||
Selling, general and administrative | 120 | 110 | 346 | 328 | ||||
Research and development | 191 | 187 | 560 | 556 | ||||
Amortization expense for acquired intangible assets | 3 | 3 | 10 | 10 | ||||
Reorganization of business and other | 2 | -3 | 10 | -35 | ||||
Operating (loss) earnings | 157 | 127 | 386 | 407 | ||||
Loss on extinguishment or modification of long-term debt | -1 | -3 | -82 | -31 | ||||
Other expense, net | -118 | -134 | -363 | -404 | ||||
Earnings (loss) before income taxes | 38 | -10 | -59 | -28 | ||||
Income tax expense | 15 | 14 | 31 | 39 | ||||
Net earnings (loss) | $23 | ($24) | ($90) | ($67) | ||||
Net earnings (loss) per share: | ||||||||
Basic (in usd per share) | $0.09 | ($0.10) | ($0.35) | ($0.27) | ||||
Diluted (in usd per share) | $0.09 | ($0.10) | [1] | ($0.35) | [1] | ($0.27) | [1] | |
Weighted average common shares outstanding: | ||||||||
Basic (in shares) | 258 | [2] | 249 | [2] | 255 | [2] | 248 | [2] |
Diluted (in shares) | 261 | 251 | 257 | 251 | ||||
[1] | No dilutive securities have been included in the diluted net loss per share calculation in periods where a net loss was incurred. | |||||||
[2] | Weighted average common shares outstanding includes outstanding common shares of the Company and unissued common shares underlying vested RSUs. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Statement of Other Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $23 | ($24) | ($90) | ($67) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments | 0 | 1 | -4 | 0 |
Derivative instruments adjustments: | ||||
Unrealized gains (losses) arising during the period | 3 | 6 | -3 | 7 |
Reclassification adjustment for items included in net earnings (loss) | 1 | 1 | 0 | 2 |
Post-retirement adjustments: | ||||
(Losses) gains arising during the period | 0 | -1 | 2 | 0 |
Amortization of actuarial gains included in net earnings (loss) | 1 | 0 | 2 | 0 |
Other comprehensive earnings (loss) | 5 | 7 | -3 | 9 |
Comprehensive earnings (loss) | $28 | ($17) | ($93) | ($58) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $700 | $711 |
Restricted cash for bond redemptions | 782 | 0 |
Accounts receivable, net | 426 | 384 |
Inventory, net | 728 | 797 |
Other current assets | 141 | 166 |
Total current assets | 2,777 | 2,058 |
Property, plant and equipment, net | 685 | 715 |
Intangible assets, net | 56 | 64 |
Other assets, net | 301 | 334 |
Total assets | 3,819 | 3,171 |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||
Current portion of long-term debt and capital lease obligations | 753 | 6 |
Accounts payable | 386 | 323 |
Accrued liabilities and other | 399 | 543 |
Total current liabilities | 1,538 | 872 |
Long-term debt | 6,375 | 6,375 |
Other liabilities | 432 | 455 |
Total liabilities | 8,345 | 7,702 |
Shareholders’ deficit: | ||
Preferred shares, par value $0.01 per share; 100 shares authorized, no shares issued and outstanding at September 27, 2013 and December 31, 2012 | 0 | 0 |
Common shares, par value $0.01 per share; 900 shares authorized, 258 and 249 issued and outstanding at September 27, 2013 and December 31, 2012, respectively | 3 | 2 |
Additional paid-in capital | 8,314 | 8,217 |
Accumulated other comprehensive earnings | 11 | 14 |
Accumulated deficit | -12,854 | -12,764 |
Total shareholders’ deficit | -4,526 | -4,531 |
Total liabilities and shareholders’ deficit | $3,819 | $3,171 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in usd per share) | $0.01 | $0.01 |
Preferred shares, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred shares, shares issued (shares) | 0 | 0 |
Preferred shares, shares outstanding (shares) | 0 | 0 |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, shares authorized (shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (shares) | 258,000,000 | 249,000,000 |
Common stock, shares outstanding (shares) | 258,000,000 | 249,000,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Cash flows from operating activities: | ||
Net loss | ($90) | ($67) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and amortization | 206 | 207 |
Reorganization of business and other | 10 | -35 |
Share-based compensation | 36 | 31 |
Deferred incomes taxes | 18 | 33 |
Loss on extinguishment or modification of long-term debt | 82 | 31 |
Proceeds from business interruption insurance recoveries | 0 | 61 |
Deferred intellectual property revenue | -61 | 70 |
Other non-cash items | 33 | -10 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | -67 | 31 |
Inventory, net | 67 | 13 |
Accounts payable and accrued liabilities | -31 | -54 |
Other operating assets and liabilities | 0 | -43 |
Net cash provided by operating activities | 203 | 268 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -107 | -85 |
Proceeds from sale of property, plant and equipment | 6 | 1 |
Purchases and sales of short-term and other investments, net | -1 | 1 |
Payments for purchased licenses and other assets | -50 | -60 |
Net cash used for investing activities | -152 | -143 |
Cash flows from financing activities: | ||
Retirements of and payments for long-term debt and capital lease obligations | -3,319 | -632 |
Debt issuance proceeds, net of debt issuance costs | 3,982 | 481 |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | -782 | 0 |
Proceeds from stock option exercises and ESPP share purchases | 62 | 19 |
Net cash used for financing activities | -57 | -132 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -2 |
Net decrease in cash and cash equivalents | -11 | -9 |
Cash and cash equivalents, beginning of period | 711 | 772 |
Cash and cash equivalents, end of period | $700 | $763 |
Overview_and_Basis_of_Presenta
Overview and Basis of Presentation | 9 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation |
Overview: Freescale Semiconductor, Ltd. (“Freescale Ltd.”), based in Austin, Texas, is a global leader in microcontrollers (MCUs) and digital networking processors. These embedded processing solutions are the keystones of the emerging Internet of Things, a network of smart devices that will help make our lives easier, safer and more productive. We complement our embedded processors with analog, sensor and radio frequency (RF) devices to help provide highly integrated solutions that streamline customer development efforts and shorten their time to market. Our product and strategy focus is on the need for increased connectivity and enhanced intelligence that is at the heart of the fastest growing semiconductor applications. Growing electronic content in automobiles, increasing demands for networking bandwidth, connected industrial and medical electronics and the proliferation of smart mobile devices are the growth drivers of our business. We have a heritage of innovation and product leadership spanning over 50 years and have an extensive intellectual property portfolio. Our close customer relationships have been built upon years of collaborative product development. We sell our products directly to original equipment manufacturers, distributors, original design manufacturers and contract manufacturers. Freescale Ltd. and its wholly-owned subsidiaries, including Freescale Semiconductor, Inc. (“Freescale Inc.”), are collectively referred to as the “Company,” “Freescale,” “we,” “us” or “our,” as the context requires. | |
Basis of Presentation: The accompanying condensed consolidated financial statements for Freescale Ltd. as of September 27, 2013 and December 31, 2012, and for the three and nine months ended September 27, 2013 and September 28, 2012 are unaudited, with the December 31, 2012 amounts included herein derived from the audited consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the financial position, results of operations and cash flows as of September 27, 2013 and for all periods presented. Certain amounts reported in previous periods have been reclassified to conform to the current period presentation. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our December 31, 2012 Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on March 7, 2013 (the "Annual Report"). The results of operations for the three and nine months ended September 27, 2013 are not necessarily indicative of the operating results to be expected for the full year. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. In addition to the items described below, our significant accounting policies and critical estimates are disclosed in our Annual Report. Refer to “Significant Accounting Policies and Critical Estimates” within “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for more information. |
Other_Financial_Data
Other Financial Data | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Other Financial Data | Other Financial Data | ||||||||||||||||
Statements of Operations Supplemental Information | |||||||||||||||||
Intellectual Property Revenue | |||||||||||||||||
Intellectual property revenue for the third quarter and first nine months of 2013 was $55 million and $162 million, respectively. Of these amounts, $25 million and $124 million, respectively, were associated with multiple deliverable arrangements entered into during the second quarter of 2012. Comparatively, intellectual property revenue during the third quarter and first nine months of 2012 was $52 million and $152 million, respectively, and included $39 million and $97 million, respectively, related to these same arrangements. The arrangements include (i) multi-year patent license agreements, ranging from six to eight years, one of which contained renegotiation rights through the third quarter of 2013 and renewal options upon the expiration of such license agreement and (ii) patent sales and services. Certain of these arrangements limited our ability to sell or license some of our intellectual property to other parties through the second quarter of 2013. The total consideration to be received under these agreements is $304 million, of which $63 million was received in the first nine months of 2013 and $198 million was received in 2012. The remaining cash of $43 million will be received over the next six years, with $20 million anticipated to be received within the next twelve months. | |||||||||||||||||
The total consideration was allocated to the separate units of accounting based on their relative selling price. Revenue or other income is recognized for the accounting units when the basic revenue recognition criteria are met, which is consistent with our policy for revenue recognition related to products and services. | |||||||||||||||||
Revenue for the patent license agreements was recognized over the course of the renegotiation rights period, which expired in the third quarter of 2013, and up front if renegotiation rights did not exist. Revenue for the patent sales and services are recognized upon delivery of such items which we anticipate to conclude by December 31, 2013. Revenue for the remaining items was recognized ratably over the course of the respective agreements through the end of the third quarter of 2013. At September 27, 2013 and December 31, 2012, included in accrued liabilities and other was $29 million and $103 million, respectively, of deferred revenue related to our intellectual property and other agreements. | |||||||||||||||||
Loss on Extinguishment or Modification of Long-Term Debt | |||||||||||||||||
During the third quarter of 2013, Freescale Inc. redeemed the remaining $98 million of 8.875% Unsecured Notes and recorded a $1 million charge for the write-off of unamortized debt issuance costs. During the first nine months of 2013, we recorded a charge of $82 million in the accompanying Condensed Consolidated Statement of Operations associated with multiple debt refinancing and redemption transactions. This charge includes the aforementioned redemption along with charges associated with refinancing transactions in the first half of 2013 which included the extinguishment and modification of existing debt and the issuance of the 2016 and 2020 Term Loans and the 5.00% Secured Notes. These charges included $52 million of the total make-whole premiums on the redeemed notes, the write-off of unamortized debt issuance costs of $21 million, the write-off of original issue discount (OID) of $2 million and $7 million of other expenses not eligible for capitalization. These charges were recorded in accordance with ASC Subtopic 470-50, “Modifications and Extinguishments” (“ASC Subtopic 470-50”). In addition, we incurred a charge of $60 million during the fourth quarter of 2013 in connection with the redemption of the 10.125% Secured Notes and a portion of the 9.25% Secured Notes as part of the Q3 2013 Debt Refinancing Transaction. (Refer to Note 4, “Debt,” for definitions and discussion of capitalized terms referenced in this section.) | |||||||||||||||||
In the third quarter of 2012, we recorded a charge of $3 million in the accompanying Condensed Consolidated Statement of Operations associated with the redemption of $100 million of our 8.875% Unsecured Notes. During the first nine months of 2012, we recorded a charge of $31 million in the accompanying Condensed Consolidated Statement of Operations associated with the aforementioned redemption and the refinancing of $500 million of our senior subordinated notes due 2016. This charge consisted of call premiums of $21 million, the write-off of unamortized debt issuance costs of $8 million and $2 million of other expenses not eligible for capitalization under ASC Subtopic 470-50. | |||||||||||||||||
Other Expense, Net | |||||||||||||||||
The following table displays the amounts comprising other expense, net in the accompanying Condensed Consolidated Statements of Operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest expense | $ | (120 | ) | $ | (127 | ) | $ | (368 | ) | $ | (390 | ) | |||||
Interest income | 2 | 2 | 4 | 7 | |||||||||||||
Interest expense, net | (118 | ) | (125 | ) | (364 | ) | (383 | ) | |||||||||
Other, net | — | (9 | ) | 1 | (21 | ) | |||||||||||
Other expense, net | $ | (118 | ) | $ | (134 | ) | $ | (363 | ) | $ | (404 | ) | |||||
Cash paid for interest was $103 million and $352 million for the third quarter and first nine months of 2013, respectively, and $126 million and $391 million for the third quarter and first nine months of 2012, respectively. | |||||||||||||||||
During the third quarter and first nine months of 2012, we recorded losses in other, net of $9 million and $21 million, respectively, primarily attributable to the realized results and changes in the fair value associated with our interest rate swap agreements, as recorded in accordance with ASC Topic 815, “Derivatives and Hedging” (“ASC Topic 815”), partially offset by foreign currency fluctuations. | |||||||||||||||||
Net Earnings (Loss) Per Share | |||||||||||||||||
We calculate earnings per share (EPS) in accordance with ASC Topic 260, “Earnings per Share,” using the treasury stock method. Basic EPS is computed based on the weighted-average number of common shares outstanding and unissued shares underlying vested restricted share units (RSUs) during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares or resulted in the issuance of common shares that then shared in the net earnings of the Company. For the third quarter and first nine months of 2013, approximately 14 million and 15 million, respectively, and for the third quarter and first nine months of 2012, approximately 19 million and 14 million, respectively, of the Company’s stock options, RSUs and a warrant were excluded from the calculation of diluted EPS because the inclusion of these awards would have been anti-dilutive. These awards could be dilutive in the future if the average estimated fair value of the common shares increases and is greater than the exercise price of these awards and the assumed repurchases of shares under the treasury stock method. | |||||||||||||||||
The following is a reconciliation of the numerators and denominators of the basic and diluted net earnings (loss) per common share computations for the periods presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions, except per share amount) | September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic net earnings (loss) per share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net earnings (loss) | $ | 23 | $ | (24 | ) | $ | (90 | ) | $ | (67 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding (1) | 258 | 249 | 255 | 248 | |||||||||||||
Basic net earnings (loss) per share | $ | 0.09 | $ | (0.10 | ) | $ | (0.35 | ) | $ | (0.27 | ) | ||||||
Diluted net earnings (loss) per share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net earnings (loss) | $ | 23 | $ | (24 | ) | $ | (90 | ) | $ | (67 | ) | ||||||
Denominator: | |||||||||||||||||
Number of shares used in basic computation (1) | 258 | 249 | 255 | 248 | |||||||||||||
Add: Incremental shares for dilutive effect of warrants (2) | — | — | — | — | |||||||||||||
Add: Incremental shares for dilutive effect of stock options (3) | 2 | 2 | 2 | 2 | |||||||||||||
Add: Incremental shares for dilutive effect of unvested RSUs (4) | 1 | — | — | 1 | |||||||||||||
Adjusted weighted average common shares outstanding | 261 | 251 | 257 | 251 | |||||||||||||
Diluted net earnings (loss) per share (5) | $ | 0.09 | $ | (0.10 | ) | $ | (0.35 | ) | $ | (0.27 | ) | ||||||
________________ | |||||||||||||||||
-1 | Weighted average common shares outstanding includes outstanding common shares of the Company and unissued common shares underlying vested RSUs. | ||||||||||||||||
-2 | A warrant to purchase an aggregate of 10 million common shares at $36.12 per share was outstanding during all periods presented, but was not included in the computation of diluted EPS because the warrant’s exercise price was greater than the average estimated fair value of the common shares. | ||||||||||||||||
-3 | Stock options to purchase an aggregate of 4 million common shares that were outstanding during both the third quarter and first nine months of 2013 and 5 million and 4 million common shares that were outstanding during the third quarter and first nine months of 2012, respectively, were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average estimated fair value of the common shares or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense, potential windfall tax benefits and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. | ||||||||||||||||
-4 | Unvested RSUs of 1 million for the first nine months of 2013 and 4 million and less than 1 million for the third quarter and first nine months of 2012, respectively, were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and potential windfall tax benefits was greater than the weighted average number of outstanding unvested RSUs. There were no anti-dilutive unvested RSUs for the third quarter of 2013. | ||||||||||||||||
-5 | No dilutive securities have been included in the diluted net loss per share calculation in periods where a net loss was incurred. | ||||||||||||||||
Balance Sheets Supplemental Information | |||||||||||||||||
Inventory, Net | |||||||||||||||||
Inventory, net consisted of the following: | |||||||||||||||||
September 27, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Work in process and raw materials | $ | 526 | $ | 578 | |||||||||||||
Finished goods | 202 | 219 | |||||||||||||||
Inventory, net | $ | 728 | $ | 797 | |||||||||||||
As of September 27, 2013 and December 31, 2012, we had $60 million and $58 million, respectively, in reserves for inventory deemed obsolete or in excess of forecasted demand. If actual future demand or market conditions are less favorable than those projected by our management, additional inventory write-downs may be required. | |||||||||||||||||
Property, Plant and Equipment, Net | |||||||||||||||||
Depreciation and amortization expense was $45 million and $136 million for the third quarter and first nine months of 2013, respectively, and $44 million and $134 million for the third quarter and first nine months of 2012, respectively. Accumulated depreciation and amortization was $2,759 million and $2,687 million at September 27, 2013 and December 31, 2012, respectively. | |||||||||||||||||
Accumulated Other Comprehensive Earnings | |||||||||||||||||
Unrealized | Unrealized | Foreign Currency | Total | ||||||||||||||
Gain | (Loss) Gain on | Translation | |||||||||||||||
(Loss) on | Postretirement | ||||||||||||||||
Derivatives | Obligations | ||||||||||||||||
Balance at January 1, 2013 | $ | 2 | $ | (13 | ) | $ | 25 | $ | 14 | ||||||||
Current period net change | (3 | ) | 4 | (4 | ) | (3 | ) | ||||||||||
Balance at September 27, 2013 | $ | (1 | ) | $ | (9 | ) | $ | 21 | $ | 11 | |||||||
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurement | Fair Value Measurement | ||||||||||||
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are market inputs participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: | |||||||||||||
Level 1 – quoted prices in active markets for identical assets or liabilities; | |||||||||||||
Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable; and, | |||||||||||||
Level 3 – inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). | |||||||||||||
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | |||||||||||||
We measure cash and cash equivalents and derivative contracts at fair value on a recurring basis. The tables below set forth, by level, the fair value of these financial assets and liabilities as of September 27, 2013 and December 31, 2012, respectively. The table does not include assets and liabilities which are measured at historical cost or on any basis other than fair value. In the first nine months of 2013 and 2012, there were no transfers between Level 1 and Level 2. We had no Level 3 instruments at September 27, 2013 or December 31, 2012. | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of September 27, 2013 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Money market mutual funds (1) | $ | 177 | $ | 177 | $ | — | |||||||
Time deposits (1) | 311 | 311 | — | ||||||||||
Foreign currency derivative contracts (2) | 4 | — | 4 | ||||||||||
Interest rate swap agreements (3) | 1 | — | 1 | ||||||||||
Total Assets | $ | 493 | $ | 488 | $ | 5 | |||||||
Liabilities | |||||||||||||
Foreign currency derivative contracts (2) | $ | 2 | $ | — | $ | 2 | |||||||
Interest rate swap agreements (3) | 6 | — | 6 | ||||||||||
Commodity derivative contracts (4) | 1 | — | 1 | ||||||||||
Total Liabilities | $ | 9 | $ | — | $ | 9 | |||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of December 31, 2012 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Money market mutual funds (1) | $ | 192 | $ | 192 | $ | — | |||||||
Time deposits (1) | 285 | 285 | — | ||||||||||
Foreign currency derivative contracts (2) | 3 | — | 3 | ||||||||||
Total Assets | $ | 480 | $ | 477 | $ | 3 | |||||||
Liabilities | |||||||||||||
Foreign currency derivative contracts (2) | $ | 1 | $ | — | $ | 1 | |||||||
Interest rate swap agreements (3) | 17 | — | 17 | ||||||||||
Total Liabilities | $ | 18 | $ | — | $ | 18 | |||||||
The following footnotes indicate where the noted items are reported in our accompanying Condensed Consolidated Balance Sheets at September 27, 2013 and December 31, 2012: | |||||||||||||
-1 | Money market funds and time deposits are reported as cash and cash equivalents. | ||||||||||||
-2 | Foreign currency derivative contracts are reported as other current assets or accrued liabilities and other. | ||||||||||||
-3 | Interest rate swap arrangements are reported as current assets, accrued liabilities and other or other liabilities. | ||||||||||||
-4 | Commodity derivative contracts are reported as accrued liabilities and other. The fair value at December 31, 2012 was less than $1 million. | ||||||||||||
Valuation Methodologies | |||||||||||||
In determining the fair value of our interest rate swap derivatives, we use the present value of expected cash flows based on market observable interest rate yield curves commensurate with the term of each instrument. For foreign currency and commodity derivatives, our approach is to use forward contract valuation models employing market observable inputs, such as spot and forward rates for currencies and commodities. Since we only use observable inputs in our valuation of our derivative assets and liabilities, they are considered Level 2. Refer to Note 5, “Risk Management,” for further information on our foreign currency and commodity derivative contracts and our interest rate swap agreements. | |||||||||||||
Fair Value of Other Financial Instruments | |||||||||||||
In addition to the assets and liabilities described above, our financial instruments also include accounts receivable, other investments, accounts payable, accrued liabilities and long-term debt. Except for the fair value of our long-term debt, which was $6,580 million, exclusive of $753 million of current maturities, at September 27, 2013, and $6,562 million, exclusive of $5 million of current maturities, at December 31, 2012 (as determined based upon quoted market prices), the fair values of these financial instruments were not materially different from their carrying or contract values on those dates. |
Debt
Debt | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
The carrying value of our long-term debt at September 27, 2013 and December 31, 2012 consisted of the following: | ||||||||
September 27, | December 31, | |||||||
2013 | 2012 | |||||||
Extended maturity term loan due 2016 | $ | — | $ | 2,215 | ||||
2012 Term Loan due 2019 | — | 491 | ||||||
2016 Term Loan | 348 | — | ||||||
2020 Term Loan | 2,354 | — | ||||||
2021 Term Loan | 792 | — | ||||||
Replacement revolver due 2016 | — | — | ||||||
Senior secured 10.125% notes due 2018 | 221 | 663 | ||||||
Senior secured 9.25% notes due 2018 | 1,380 | 1,380 | ||||||
Senior secured 5.00% notes due 2021 | 500 | — | ||||||
Senior unsecured floating rate notes due 2014(1) | 57 | 57 | ||||||
Senior unsecured 8.875% notes due 2014 | — | 98 | ||||||
Senior unsecured 10.75% notes due 2020 | 473 | 473 | ||||||
Senior unsecured 8.05% notes due 2020 | 739 | 739 | ||||||
Senior subordinated 10.125% notes due 2016 | 264 | 264 | ||||||
Total debt | 7,128 | 6,380 | ||||||
Less: current maturities | (753 | ) | (5 | ) | ||||
Total long-term debt | $ | 6,375 | $ | 6,375 | ||||
-1 | The senior unsecured floating rate notes due 2014 bear interest at a rate, reset quarterly, equal to three month LIBOR (0.25% in effect on September 27, 2013) plus 3.875% per annum. | |||||||
Third Quarter 2013 Debt Redemption and Refinancing Transactions | ||||||||
On August 7, 2013, after the requisite notice period, Freescale, Inc. redeemed the remaining $98 million principal amount of senior unsecured 8.875% notes due 2014 ("8.875% Unsecured Notes") at par, and paid related accrued interest of $1 million. In connection with the redemption, we recorded a charge of $1 million in the Condensed Consolidated Statement of Operations associated with the write-off of unamortized debt issuance costs. (Refer to Note 2 “Loss on Extinguishment or Modification of Long-Term Debt”, for further information on the charges associated with the debt transactions discussed in this note.) | ||||||||
On September 11, 2013, Freescale Inc. entered into a new $800 million senior secured term loan facility (the “2021 Term Loan”) pursuant to an amendment to its existing senior secured credit facilities (as so amended and restated, the “Credit Facility” or "Credit Facilities"). The loan will mature on January 15, 2021, subject to acceleration under certain circumstances as described below. The 2021 Term Loan was issued at 99% of par and was recorded at fair value, which was equal to $792 million, reflective of the 1% discount. In connection with the issuance of the 2021 Term Loan, Freescale, Inc. delivered to the holders of the impacted notes notice that it would redeem such notes on October 11, 2013. The proceeds from the issuance of the new term loan, along with cash on hand, were used in the fourth quarter of 2013 to redeem the remaining $221 million of the 10.125% senior secured notes due 2018 ("10.125% Secured Notes") and $496 million of the 9.25% senior secured notes due 2018 ("9.25% Secured Notes"), and to pay related accrued interest, fees and expenses associated with this transaction referred to as the “Q3 2013 Debt Refinancing Transaction.” As of September 27, 2013, $782 million was classified as restricted cash on the accompanying Condensed Consolidated Balance Sheet, which represented the proceeds from the issuance used to redeem the notes and pay the related make-whole premiums. (Refer to "Credit Facility" later in this section for additional details of the terms of the 2021 Term Loan.) | ||||||||
In connection with this transaction and upon the redemption of the 10.125% Secured Notes and a portion of the 9.25% Secured Notes during the fourth quarter of 2013, we incurred approximately $10 million of fees and expenses and $65 million of make-whole premiums, of which a total of $23 million was capitalized and will be amortized over the term of the underlying loan. Additionally, we recorded a charge of $60 million during the fourth quarter of 2013 in the Condensed Consolidated Statement of Operations associated with the redemption of these notes, which consisted of the write-off of unamortized debt issuance costs, a portion of the make-whole premiums and other expenses not eligible for capitalization under ASC Subtopic 470-50. | ||||||||
The Credit Facilities contain a provision that requires the weighted average yield of existing term loans under the Credit Facilities to be no less than 0.50% below the weighted average yield of certain new term loans issued under the Credit Facilities. As a result of the issuance of the 2021 Term Loan, the interest rate on the existing 2016 Term Loan increased by 0.50% to LIBOR plus 3.75% (with a LIBOR floor of 1.00%), resulting in an increase in the weighted average yield of the 2016 Term Loan to 4.75%. | ||||||||
Second Quarter 2013 Debt Refinancing Transaction | ||||||||
On May 21, 2013, Freescale, Inc. issued $500 million aggregate principal amount of 5.00% senior secured notes (“5.00% Secured Notes”) which will mature on May 15, 2021. The proceeds from this issuance, along with cash on hand, were used to redeem $442 million of the 10.125% Secured Notes on June 20, 2013, and to pay make-whole premiums totaling $53 million, accrued interest of $12 million and related fees and expenses in a transaction referred to as the “Q2 2013 Debt Refinancing Transaction.” The Q2 2013 Debt Refinancing Transaction was completed in compliance with the Credit Facility as well as the indentures governing our senior secured, senior unsecured and senior subordinated notes (the "Indentures”). The 5.00% Secured Notes were recorded at fair value which was equal to the gross cash proceeds received from the issuance. Because cash proceeds from the transaction were used for the redemption of debt, which relieved Freescale Inc., Freescale Ltd. and certain other Freescale Ltd. subsidiaries of their obligations associated with the above mentioned portion of the 10.125% Secured Notes, substantially all of the transaction was accounted for as an extinguishment of debt in accordance with ASC Subtopic 470-50. A small portion of our lenders under the 5.00% Secured Notes were also lenders under the 10.125% Secured Notes, which effectively resulted in a portion of the previous notes being exchanged by these lenders for new notes. This part of the transaction was accounted for as an exchange that is a non-substantial modification of debt under the guidelines of ASC Subtopic 470-50. In connection with this transaction, we incurred approximately $7 million of fees and expenses which were capitalized and will be amortized over the term of the notes. We recorded a charge of $59 million in the accompanying Condensed Consolidated Statement of Operations associated with this transaction, which consisted of a portion of the make-whole premiums, the write-off of unamortized debt issuance costs and other expenses not eligible for capitalization under ASC Subtopic 470-50. | ||||||||
The 5.00% Secured Notes bear interest at a rate of 5.00% per annum, payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2013. Relative to our overall indebtedness, the 5.00% Secured Notes rank in right of payment (i) pari passu to our existing senior secured indebtedness, (ii) senior to senior unsecured indebtedness to the extent of any underlying collateral, but otherwise pari passu to such senior unsecured indebtedness, and (iii) senior to all subordinated indebtedness. The 5.00% Secured Notes are governed by the indenture dated as of May 21, 2013 (the “5.00% Indenture”). Each of Freescale Inc.'s parent companies, indirect parent companies and wholly-owned subsidiaries that guarantee indebtedness, joint and severally, under the Credit Facility also guarantees, joint and severally, the 5.00% Secured Notes on a senior secured basis. (Refer to the guarantees discussion in Note 4, "Debt," to our consolidated financial statements in our Annual Report for further information.) Freescale Inc. may redeem the 5.00% Secured Notes, in whole or in part, at any time prior to May 15, 2016, at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest to the redemption date, plus the applicable make-whole premium, as described in the 5.00% Indenture. Freescale may redeem the notes, in whole or in part, at any time on or after May 15, 2016 at a redemption price equal to 100% of the principal amount of the notes, plus accrued and unpaid interest to the redemption date, plus a premium declining over time as set forth in the 5.00% Indenture. In addition, at any time on or prior to May 15, 2016, Freescale may redeem up to 35% of the aggregate principal amount of the notes with the proceeds of certain equity offerings, as described in the 5.00% Indenture. If Freescale Inc. experiences certain change of control events, the 5.00% Secured Note holders may require Freescale to repurchase all or part of their notes at 101% of the principal amount of the notes, plus accrued and unpaid interest to the repurchase date. | ||||||||
First Quarter 2013 Debt Refinancing Transaction | ||||||||
On March 1, 2013, Freescale Inc. obtained new senior secured term loan facilities pursuant to an amendment and restatement of the Credit Facility. The terms of the Credit Facility, among other things, provided for the issuance of a $350 million term loan that will mature in December 2016 (the “2016 Term Loan”) and a $2.39 billion term loan that will mature in March 2020 (the “2020 Term Loan”). The 2016 Term Loan was issued at par, while the 2020 Term Loan was issued at 99% of par. The term loans were recorded at fair value, which was equal to the $350 million principal amount in the case of the 2016 Term Loan and $2.36 billion in the case of the 2020 Term Loan. The fair value of the 2020 Term Loan was reflective of the 1% discount on issuance along with $3 million of OID previously attributable to the senior secured term loan facility due February 28, 2019 (the "2012 Term Loan"), which was deemed exchanged for the 2020 Term Loan. The proceeds from the issuances of the new term loans were used to prepay $496 million of outstanding principal on the 2012 Term Loan, $2.2 billion of outstanding principal on the extended maturity term loan due 2016 (the “Extended Term Loan”) and a portion of the related fees and expenses associated with this transaction referred to as the “Q1 2013 Debt Refinancing Transaction.” Freescale, Inc. used cash on hand to pay related accrued interest of $10 million and the remaining fees and expenses. | ||||||||
The majority of the proceeds from the issuance of the 2016 and 2020 Term Loans were used to prepay the 2012 Term Loan and the Extended Term Loan, thus relieving Freescale Inc. and certain other Freescale Ltd. subsidiaries of their obligations associated with that liability. This portion of the Q1 2013 Debt Refinancing Transaction constitutes an extinguishment of debt under ASC Subtopic 470-50, and was accounted for accordingly. A significant portion of our lenders under the 2012 Term Loan and Extended Term Loan were also lenders under the 2016 and 2020 Term Loans. Effectively, a portion of the previous loans was exchanged by these lenders for new term loans. This part of the transaction was accounted for as an exchange that is a non-substantial modification of debt under the guidelines of ASC Subtopic 470-50, as the difference between the present value of the cash flows under the terms of the 2016 and 2020 Term Loans and the present value of the cash flows under the 2012 and Extended Term Loans held by these lenders was less than 10%. Additionally, a portion of the Q1 2013 Debt Refinancing Transaction related to new funds committed under the 2016 and 2020 Term Loans and was accounted for as a new debt issuance. In connection with this transaction, we incurred approximately $10 million of fees and expenses, of which $3 million were capitalized and will be amortized over the terms of the underlying loans. Additionally, we recorded a charge of $22 million in the accompanying Condensed Consolidated Statement of Operations associated with this transaction, which consisted of the write-off of unamortized debt issuance costs, OID and other expenses not eligible for capitalization under ASC Subtopic 470-50. | ||||||||
Credit Facility | ||||||||
At September 27, 2013, Freescale Inc.’s Credit Facility included (i) the 2016 Term Loan, (ii) the 2020 Term Loan, (iii) the 2021 Term Loan and (iv) the revolving credit facility (the "Replacement Revolver"), including letters of credit and swing line loan sub-facilities, with a committed capacity of $425 million. The interest rate on the 2016 Term Loan was 4.75% and the the interest rate on both the 2020 Term Loan and 2021 Term Loan was 5.00% at September 27, 2013. At the end of the third quarter of 2013, the Replacement Revolver’s available capacity was $400 million, as reduced by $25 million of outstanding letters of credit. | ||||||||
2016 Term Loan | ||||||||
At September 27, 2013, $348 million was outstanding under the 2016 Term Loan, which will mature on December 1, 2016. The 2016 Term Loan bears interest, at Freescale Inc.'s option, at a rate equal to a margin over either (i) a base rate equal to the higher of either (a) the prime rate of Citibank, N.A. or (b) the federal funds rate, plus one-half of 1%; or (ii) a LIBOR rate based on the cost of funds for deposit in the currency of borrowing for the relevant interest period, adjusted for certain additional costs. The Third Amended and Restated Credit Agreement as of March 1, 2013, as further amended in connection with the Q3 2013 Debt Refinancing Transaction (the “Credit Agreement”), provides that the spread over LIBOR with respect to the 2016 Term Loan is 3.75%, with a LIBOR floor of 1.00%. As indicated above, the spread was increased in connection with the issuance of the 2021 Term Loan resulting in a weighted average yield of 4.75%, an increase of 0.50%. Under the Credit Agreement, Freescale Inc. is required to repay a portion of the 2016 Term Loan in quarterly installments in aggregate annual amounts equal to 1% of the initial outstanding balance. | ||||||||
2020 Term Loan | ||||||||
At September 27, 2013, $2,379 million was outstanding under the 2020 Term Loan, which will mature on March 1, 2020 subject to acceleration under certain circumstances as described below. The 2020 Term Loan bears interest, at Freescale Inc.'s option, at a rate equal to a margin over either (i) a base rate equal to the higher of either (a) the prime rate of Citibank, N.A. or (b) the federal funds rate, plus one-half of 1%; or (ii) a LIBOR rate based on the cost of funds for deposit in the currency of borrowing for the relevant interest period, adjusted for certain additional costs. The Credit Agreement provides that the spread over LIBOR with respect to the 2020 Term Loan is 3.75%, with a LIBOR floor of 1.25%. Under the Credit Agreement, Freescale Inc. is required to repay a portion of the 2020 Term Loan in quarterly installments in aggregate annual amounts equal to 1% of the initial outstanding balance. There is an early maturity acceleration clause associated with the 2020 Term Loan such that principal amounts under the loan will become due and payable on December 15, 2017, if, at December 1, 2017, (i) Freescale, Inc.'s total leverage ratio is greater than 4:1 at the September 30, 2017 test period and (ii) the aggregate principal amount of the 9.25% Secured Notes exceeds $500 million. Additionally, the 2020 Term Loan contains a provision whereby Freescale Inc. can call the loan at 101% of the principal amount within twelve months from the date of issuance. At September 27, 2013, the 2020 Term Loan was recorded on the accompanying Condensed Consolidated Balance Sheet at a $25 million discount which is subject to accretion to par value over the term of the loan using the effective interest method. | ||||||||
2021 Term Loan | ||||||||
At September 27, 2013, $800 million was outstanding under the 2021 Term Loan, which will mature on January 15, 2021 subject to acceleration under certain circumstances as described below. The 2021 Term Loan bears interest, at Freescale Inc.'s option, at a rate equal to a margin over either (i) a base rate equal to the higher of either (a) the prime rate of Citibank, N.A. or (b) the federal funds rate, plus one-half of 1%; or (ii) a LIBOR rate based on the cost of funds for deposit in the currency of borrowing for the relevant interest period, adjusted for certain additional costs. The Credit Agreement provides that the spread over LIBOR with respect to the 2021 Term Loan is 3.75%, with a LIBOR floor of 1.25%. Under the Credit Agreement, Freescale Inc. is required to repay a portion of the 2021 Term Loan in quarterly installments in aggregate annual amounts equal to 1% of the initial outstanding balance. There is an early maturity acceleration clause associated with the 2021 Term Loan such that principal amounts under the loan will become due and payable on March 15, 2018, if, at March 1, 2018, (i) Freescale, Inc.'s total leverage ratio is greater than 4:1 at the September 30, 2017 test period and (ii) the aggregate principal amount of the 9.25% Secured Notes exceeds $500 million. Additionally, the 2021 Term Loan contains a provision whereby Freescale Inc. can call the loan at 101% of the principal amount within twelve months from the date of issuance. At September 27, 2013, the 2021 Term Loan was recorded on the accompanying Condensed Consolidated Balance Sheet at an $8 million discount which is subject to accretion to par value over the term of the loan using the effective interest method. | ||||||||
The obligations under the Credit Agreement are unconditionally guaranteed by the same parties and in the same manner as under the credit agreement that was in effect prior to the amendments made in 2013. In addition, the Credit Agreement contains the same prepayment provisions as the previous credit agreement except as indicated above. (Refer to the guarantees and right of payment discussion in Note 4, "Debt," to our consolidated financial statements in our Annual Report for further information.) | ||||||||
Covenant Compliance | ||||||||
Freescale Inc.’s Credit Facility governing the term loans and the Indentures governing the senior notes contain restrictive covenants that limit the ability of our subsidiaries to, among other things, incur or guarantee additional indebtedness or issue preferred shares, pay dividends and make other restricted payments, impose limitations on the ability of our restricted subsidiaries to pay dividends or make other distributions, create or incur certain liens, make certain investments, transfer or sell assets, engage in transactions with affiliates and merge or consolidate with other companies or transfer all or substantially all of our assets. Under the Credit Facility and Indentures, Freescale Inc. must comply with conditions precedent that must be satisfied prior to any borrowing. | ||||||||
As of September 27, 2013, Freescale Inc. was in compliance with the covenants under the Credit Facility and the Indentures, but did not meet the ratios thereunder: the total leverage ratio of 6.50:1 or lower, the senior secured first lien leverage ratio of 4.00:1 or lower, the fixed charge coverage ratio of 2.00:1 or greater or the consolidated secured debt ratio of 3.25:1 or lower. As of September 27, 2013, Freescale Inc.’s total leverage ratio was 6.90:1, senior secured first lien leverage ratio was 5.01:1, the fixed charge coverage ratio was 1.97:1 and the consolidated secured debt ratio was 6.80:1. Accordingly, we are currently restricted from making restricted payments and incurring liens on assets securing indebtedness, except as otherwise permitted by the Credit Facility and Indentures. The fact that we do not meet these ratios does not result in any default under the Credit Facility or the Indentures. | ||||||||
Hedging Transactions | ||||||||
Freescale Inc. has previously entered into interest rate swap agreements and interest rate cap agreements with various counterparties as a hedge of the variable cash flows of our variable interest rate debt. In connection with the Q1 2013 Debt Refinancing Transaction, under which the majority of our debt essentially became fixed rate debt for the near term, we effectively terminated all of these agreements. (Refer to Note 5, “Risk Management,” for further details of these hedging agreements.) | ||||||||
Debt Service | ||||||||
We are required to make debt service principal payments under the terms of our debt agreements. As of September 27, 2013, the remaining obligated debt payments for 2013 are $726 million, inclusive of $717 million of principal that was redeemed on October 11, 2013 in connection with the Q3 2013 Debt Refinancing Transaction. Future obligated debt payments are $93 million in 2014, $35 million in 2015, $637 million in 2016, $32 million in 2017, $916 million in 2018 and $4,722 million thereafter. |
Risk_Management
Risk Management | 9 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Disclosure Risk Management Additional Information [Abstract] | |||||||||||
Risk Management | Risk Management | ||||||||||
Foreign Currency Risk | |||||||||||
At September 27, 2013 and December 31, 2012, we had net outstanding foreign currency exchange contracts not designated as accounting hedges with notional amounts totaling approximately $129 million and $217 million, respectively, which are accounted for at fair value. These forward contracts have original maturities of less than three months. The fair value of the forward contracts was a net unrealized gain (loss) of $1 million and less than $(1) million at September 27, 2013 and December 31, 2012, respectively. Forward contract gains (losses) of $1 million and $(3) million for the third quarter and first nine months of 2013, respectively, and $5 million and less than $(1) million for the third quarter and first nine months of 2012, respectively, were recorded in other expense, net in the accompanying Condensed Consolidated Statements of Operations related to our realized and unrealized results associated with these foreign exchange contracts. Management believes that these financial instruments will not subject us to undue risk of foreign exchange movements because gains and losses on these contracts should offset losses and gains on the assets and liabilities being hedged. The following table shows, in millions of U.S. dollars, the notional amounts of the most significant net foreign exchange hedge positions for outstanding foreign exchange contracts not designated as accounting hedges as of September 27, 2013 and December 31, 2012: | |||||||||||
Buy (Sell) | September 27, | December 31, | |||||||||
2013 | 2012 | ||||||||||
Euro | $ | 36 | $ | 104 | |||||||
Japanese Yen | $ | 34 | $ | 28 | |||||||
Chinese Renminbi | $ | 20 | $ | 23 | |||||||
Malaysian Ringgit | $ | 16 | $ | 26 | |||||||
Indian Rupee | $ | (6 | ) | $ | (3 | ) | |||||
Cash Flow Hedges | |||||||||||
We use foreign currency exchange contracts to hedge future expected cash flows associated with net sales, cost of sales, selling, general and administrative expenses and research and development expenses. These forward contracts have original maturities of less than 18 months. The following table shows, in millions of U.S. dollars, the notional amounts of the foreign exchange hedge positions for outstanding foreign exchange contracts designated as cash flow hedges under ASC Topic 815 as of September 27, 2013 and December 31, 2012: | |||||||||||
Buy (Sell) | September 27, | December 31, | Hedged Exposure | ||||||||
2013 | 2012 | ||||||||||
Malaysian Ringgit | $ | 107 | $ | 68 | Cost of sales | ||||||
Chinese Renminbi | $ | 98 | $ | 53 | Cost of sales | ||||||
$ | 24 | $ | 13 | Selling, general and administrative | |||||||
$ | 24 | $ | 11 | Research and development | |||||||
Japanese Yen | $ | 34 | $ | — | Cost of sales | ||||||
Euro | $ | (42 | ) | $ | — | Net sales | |||||
At September 27, 2013 and December 31, 2012, we had cash flow designated forward contracts with a total fair value of a net unrealized gain of less than $1 million and $2 million, respectively. Gains (losses) of less than $1 million and $2 million for the third quarter and first nine months of 2013, respectively, and $(1) million and $1 million for the third quarter and first nine months of 2012, respectively, were recorded in the accompanying Condensed Consolidated Statements of Operations related to our realized results associated with these cash flow hedges. Management believes that these financial instruments will not subject us to undue risk of foreign exchange movements because gains and losses on these contracts should offset losses and gains on the forecasted expenses being hedged. | |||||||||||
Commodity Price Risk | |||||||||||
We operate facilities that consume commodities, and we have established forecasted transaction risk management programs to mitigate fluctuations in fair value and the volatility of future cash flows caused by changes in commodity prices. These programs reduce, but do not always entirely eliminate, the impact of commodity price movements. | |||||||||||
We use gold swap contracts to hedge our exposure to increases in the price of gold which are designated as cash flow hedges under ASC Topic 815. At September 27, 2013 and December 31, 2012, these contracts had net outstanding notional amounts totaling 30,000 ounces and 17,000 ounces, respectively, which are accounted for at fair value. All of these outstanding gold swap contracts had original maturities of 15 months or less. The fair value of these contracts was a net unrealized loss of $1 million at both September 27, 2013 and December 31, 2012. During both the third quarter and first nine months of 2013, losses of $2 million, and during the third quarter and first nine months of 2012, losses of $1 million and $3 million, respectively, were recorded in cost of sales related to our realized results attributable to these gold swap contracts. Additionally, during both the third quarter and first nine months of 2012, losses of $1 million were recorded in other expense, net in the accompanying condensed Consolidated Statements of Operations related to ineffectiveness on these contracts as well as the change in fair value associated with these swap contracts up to the date of designation. Management believes that these financial instruments will not subject us to undue risk of fluctuations in the price of gold because gains and losses on these swap contracts should offset losses and gains on the forecasted gold wire expense being hedged. | |||||||||||
Interest Rate Risk | |||||||||||
We have historically used interest rate swap agreements to assist in managing the floating rate portion of our debt portfolio. In connection with the Q1 2013 Debt Refinancing Transaction, under which the majority of our debt became effectively fixed rate debt for the near term, we either terminated or, in lieu of terminating the agreements and incurring a penalty, entered into offsetting interest rate swap agreements which resulted in a $15 million liability to be paid through December 1, 2016, the end of the original expiration of the interest rate swap agreements. During the first nine months of 2013, we paid $1 million of this liability. The change in fair value arising from the offsetting swap agreements along with the existing agreements are recorded in other expense, net in the accompanying Condensed Consolidated Statements of Operations. | |||||||||||
In the first nine months of 2013, we recognized a gain of $1 million prior to the termination of the interest rate swap agreements, and in the third quarter and first nine months of 2012, we recognized losses of $7 million and $17 million, respectively, in other expense, net in the accompanying Condensed Consolidated Statements of Operations associated with the realized results and change in fair value of our interest rate swaps in accordance with ASC Topic 815. | |||||||||||
Counterparty Risk | |||||||||||
Outstanding financial derivative instruments expose us to credit losses in the event of nonperformance by the counterparties to the agreements. We also enter into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow counterparties to net settle amounts owed to each other as a result of multiple, separate derivative transactions. The credit exposure related to these financial instruments is represented by the contracts with a positive fair value at the reporting date. On a periodic basis, we review the credit ratings of our counterparties and adjust our exposure as deemed appropriate. As of September 27, 2013, we believe that our exposure to counterparty risk is immaterial. |
Share_and_Equitybased_Compensa
Share and Equity-based Compensation | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Share and Equity-based Compensation | Share and Equity-based Compensation | ||||||||||||
2011 Omnibus Incentive Plan | |||||||||||||
On April 2, 2013, we granted approximately 1.9 million stock options and 3.5 million RSUs under the 2011 Omnibus Incentive Plan (the "2011 Plan") to certain executives and employees as part of our annual long-term incentive grants. The stock options and RSUs vest 25% on each of the first, second, third, and fourth anniversaries of the date of grant. The grant date fair value of the stock options is $6.90 and the strike price for these awards is equal to the closing price on the date of grant, or $13.91. Total compensation costs associated with these awards of $47 million, net of estimated forfeitures, will be amortized on a straight-line basis over a period of four years to additional paid-in capital. | |||||||||||||
Also, in connection with the annual grant noted above, we granted approximately one million market-based performance RSUs (PRSUs) to certain executives, which cliff vest on the third anniversary of the date of grant. The number of units that will vest will range from 0% to 150% of the target shares awarded based on the relative Total Shareholder Return (TSR) of the Company's share price as compared to a set of peer companies. The grant date fair value for these awards is $17.01, as determined using the Monte Carlo valuation model, and total compensation cost of $13 million, net of estimated forfeitures, will be amortized on a straight-line basis over a period of three years to additional paid-in capital. | |||||||||||||
Non-qualified Options | |||||||||||||
As of September 27, 2013, we had issued approximately 6.0 million non-qualified stock options in Freescale Ltd. (“2011 Options”), which remain outstanding, with exercise prices ranging from $8.74 to $17.30 per share, to certain qualified participants pursuant to the 2011 Plan. The 2011 Options generally vest at a rate of 25% of the total grant on each of the first, second, third and fourth anniversaries of the date of grant, and are subject to the terms and conditions of the 2011 Plan and related award agreements. As of September 27, 2013, we had approximately $28 million in unamortized expense, net of expected forfeitures, which is being amortized on a straight-line basis over a period of four years to additional paid-in capital. | |||||||||||||
The fair value of the 2011 Options was estimated on the date of grant using the Black-Scholes option pricing model. The assumptions used in the model are outlined in the following table: | |||||||||||||
Nine Months Ended | |||||||||||||
September 27, | September 28, | ||||||||||||
2013 | 2012 | ||||||||||||
Weighted average grant date fair value per share | $ | 7.03 | $ | 7.1 | |||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 60.73 | % | 62.27 | % | |||||||||
Expected lives (in years) | 4.75 | 5.08 | |||||||||||
Risk free interest rate | 0.75 | % | 0.94 | % | |||||||||
Expected dividend yield | — | % | — | % | |||||||||
In accordance with ASC Topic 718, the computation of the expected volatility assumptions used in the Black-Scholes calculations for grants was based on historical volatilities and implied volatilities of peer companies. The Company utilized the volatilities of peer companies due to its lack of extensive history as a public company and the fact that its current equity was not publicly traded prior to May 26, 2011. The peer companies operate in the semiconductor industry and are of similar size. When establishing its expected life assumptions, we use the “simplified” method prescribed in ASC Topic 718 for companies that do not have adequate historical data. The risk-free interest rate is measured as the prevailing yield for a U.S. Treasury security with a maturity similar to the expected life assumption. | |||||||||||||
A summary of changes in the 2011 Options outstanding during the nine months ended September 27, 2013 is presented below: | |||||||||||||
Stock Options | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
(in thousands) | exercise price | Remaining | Intrinsic Value | ||||||||||
per share | Contractual | (in millions) | |||||||||||
Term (Years) | |||||||||||||
Balance at January 1, 2013 | 4,606 | $ | 12.93 | 6 | $ | 2 | |||||||
Granted | 2,187 | $ | 14.03 | ||||||||||
Terminated, canceled or expired | (585 | ) | $ | 14.92 | |||||||||
Exercised | (238 | ) | $ | 14.48 | |||||||||
Balance at September 27, 2013 | 5,970 | $ | 13.08 | 6 | $ | 20 | |||||||
Exercisable options at September 27, 2013 | 789 | $ | 12.83 | 6 | $ | 3 | |||||||
Restricted Share Units | |||||||||||||
Since the IPO, RSUs have been granted under the 2011 Plan to certain employees and executives of the Company. While RSUs, to the extent earned, generally vest at a rate of 25% of the total grant on the first, second, third and fourth anniversaries of the date of grant, some RSUs vest at a rate of one-third of the total grant on each of the first, second and third anniversaries of the date of grant, depending on the award, and are subject to the terms and conditions of the 2011 Plan and related award agreements. These grants are not entitled to dividends or voting rights, if any, until the underlying common shares are delivered. The fair value of the RSU awards is being recognized on a straight-line basis over the employee service period. | |||||||||||||
In addition to the PRSUs granted during 2013, we have also granted PRSUs to certain executives of the Company under the 2011 Plan during 2012. The PRSUs granted during 2012, to the extent earned, vest at a rate of one-third of the total grant on each of the first, second and third anniversaries of the date of grant for certain executives or vest fully on the third anniversary of the date of grant for PRSUs granted to our CEO. The number of common shares underlying each PRSU is contingent on Company performance measured by annual revenue and earnings per share goals established by the Compensation and Leadership Committee of the Board of Directors for each annual performance period. Each PRSU entitles the grant recipient to receive from 0 to 1.50 common shares for certain executives or 0 to 1.0 common shares for PRSUs granted to our CEO based on the Company’s achievement of the performance goals for each performance period. | |||||||||||||
As of September 27, 2013 we had approximately $81 million in unamortized expense, net of expected forfeitures, which is being amortized on a straight-line basis to additional paid-in capital over a period of three or four years, depending on the award, for RSUs and three years for PRSUs. Under the terms of the RSU and PRSU award agreements, common shares underlying these awards are issued to the participant upon vesting of the award. | |||||||||||||
A summary of changes in the RSUs and PRSUs outstanding under the 2011 Plan during the nine months ended September 27, 2013 is presented below: | |||||||||||||
RSUs and PRSUs | |||||||||||||
(in thousands) | |||||||||||||
Non-vested RSU and PRSU balance at January 1, 2013 | 4,520 | ||||||||||||
Granted | 4,640 | ||||||||||||
Issued | (801 | ) | |||||||||||
Terminated, canceled or expired | (642 | ) | |||||||||||
Non-vested RSU and PRSU balance at September 27, 2013 | 7,717 | ||||||||||||
The total intrinsic value of RSUs and PRSUs issued under this plan during the first nine months of 2013 was $19 million. | |||||||||||||
2006 Management Incentive Plan and 2007 Employee Incentive Plan | |||||||||||||
Upon completion of the IPO, the shares reserved for issuance under the 2006 Management Incentive Plan (the “2006 MIP”) and 2007 Employee Incentive Plan (the “2007 EIP”) that were not issued or subject to outstanding grants became available under the 2011 Plan, and no further awards will be made under the 2006 MIP or 2007 EIP. In the event that any outstanding award under the 2011 Plan, the 2007 EIP or the 2006 MIP is forfeited for any reason, terminates, expires or lapses, any shares subject to such award will be available for issuance under the 2011 Plan. (Refer to our Annual Report for further information on the 2006 MIP and 2007 EIP.) | |||||||||||||
Non-qualified Options | |||||||||||||
During the nine months ended September 27, 2013, approximately 408 thousand and 47 thousand stock options were exercised under the 2006 MIP and 2007 EIP, respectively with weighted average strike prices for these stock options exercised of $6.44 and $6.72, respectively. As of September 27, 2013, we had approximately $1 million in unamortized expense related to options issued under these plans, net of expected forfeitures, which is being amortized on a straight-line basis over a period of four years to additional paid-in capital. | |||||||||||||
Employee Share Purchase Plan | |||||||||||||
We initiated an Employee Share Purchase Plan (“ESPP”) upon the completion of the IPO, for which we have approximately 2.4 million remaining common shares reserved for future issuance. Under the ESPP, eligible participants are allowed to purchase common shares of Freescale through payroll deductions of up to 15% of their compensation on an after-tax basis. The price an employee pays per share is 85% of the fair market value of the common shares on the close of the last trading day of the purchase period. The ESPP has two six-month purchase periods, the first of which begins on January 1 and the second of which begins on July 1. | |||||||||||||
The first ESPP offering period of 2013 began on January 1, 2013 and ended on June 30, 2013. On July 2, 2013, approximately 1 million common shares of Freescale were issued to participating employees under the ESPP at a discounted price of $11.52 per share. During the first nine months of both 2013 and 2012, we recognized $3 million in compensation costs related to the 15% discount offered under this plan. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Income taxes for the interim periods presented have been included in the accompanying Condensed Consolidated Financial Statements on the basis of an estimated annual effective tax rate. Our effective tax rate is impacted by the mix of earnings and losses by taxing jurisdictions. Although the Company is a Bermuda entity with a statutory income tax rate of zero, the earnings of many of the Company’s subsidiaries are subject to taxation in the U.S. and other foreign jurisdictions. We incur minimal income tax expense on our U.S. earnings due to valuation allowances recorded on substantially all the Company’s U.S. net deferred tax assets, as we have incurred cumulative losses in the United States. | |
For the third quarter of 2013, we recorded an income tax provision of $15 million, predominately related to our foreign operations, which included a $5 million tax expense associated with discrete events related primarily to withholding tax on intellectual property royalties. For the first nine months of 2013, we recorded an income tax provision of $31 million. This included a net income tax expense of $4 million primarily attributable to discrete events related to withholding tax on intellectual property royalties. | |
For the third quarter of 2012, we recorded an income tax provision of $14 million, which included a $5 million tax expense associated with discrete events related primarily to withholding tax on intellectual property royalties and the impact of enacted foreign tax legislation. For the first nine months of 2012, we recorded an income tax provision of $39 million. This included a net income tax expense of $11 million primarily attributable to discrete events associated with withholding tax on intellectual property royalties. | |
For the third quarter of 2013, the liability for unrecognized tax benefits decreased by $44 million due to the lapsing of statutes. The decrease did not result in a tax benefit and did not impact our effective tax rate, as the benefits were offset by valuation allowance on our deferred tax assets. The Company does not estimate the liability for unrecognized tax benefits to decrease substantially in the next twelve months. Certain of our income tax returns for the 2004 through 2011 tax years are currently under examination by various taxing authorities around the world. Although the resolution of open audits is highly uncertain, management considers it unlikely that the results of these examinations will have a material impact on our financial condition or results of operations. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Commitments | |
Product purchase commitments associated with our strategic manufacturing relationships with our wafer foundries and for assembly and test services include take or pay provisions based on volume commitments for work in progress and forecasted demand based on 18-month rolling forecasts, which are adjusted monthly. The commitment under these relationships was $113 million as of September 27, 2013. | |
Litigation | |
We are a defendant in various lawsuits, including the intellectual property matter noted in this section, and are subject to various claims which arise in the normal course of business. The Company records an associated liability when a loss is probable and the amount is reasonably estimable. | |
From time to time, we are involved in legal proceedings arising in the ordinary course of business, including tort, contractual and customer disputes, claims before the United States Equal Employment Opportunity Commission and other employee grievances, and intellectual property litigation and infringement claims. Intellectual property litigation and infringement claims could cause us to incur significant expenses or prevent us from selling our products. Under agreements with Motorola, Freescale Inc. must indemnify Motorola for certain liabilities related to our business incurred prior to our separation from Motorola. | |
On April 17, 2007, Tessera filed a lawsuit in the United States District Court for the Eastern District of Texas against ATI, Freescale Inc., Motorola and Qualcomm claiming an unspecified amount of monetary damage as compensation for the alleged infringement of two identified patents related to ball grid array packaging technology. The lawsuit was subsequently transferred to the United States District Court for the Northern District of California. This case was proceeding through the discovery phase of litigation and was set for trial in April of 2014. In connection with mediation proceedings initiated in the third quarter of 2013, Freescale Inc. and Tessera executed a settlement agreement on August 21, 2013 and Freescale Inc. made a cash payment to Tessera, which settles the litigation described above. The parties also signed a limited standstill agreement, agreeing to not bring additional claims against the other party for a fixed period. The compensation paid by us under these agreements does not have a material impact on our financial position, results of operations or cash flows as of or for the three or nine months ended September 27, 2013. | |
The resolution of intellectual property litigation, including the matter described above, may require us to pay damages for past infringement or to obtain a license under the other party's intellectual property rights that could require one-time license fees or ongoing royalties, require us to make material changes to our products and/or manufacturing processes, require us to cross-license certain of our patents and other intellectual property and/or prohibit us from manufacturing or selling one or more products in certain jurisdictions, which could adversely impact our operating results in future periods. If any of those events were to occur, our business, financial condition and results of operations could be adversely affected. |
Reorganization_of_Business_and
Reorganization of Business and Other | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Reorganization of Business and Other | Reorganization of Business and Other | ||||||||||||||||||||
Nine Months Ended September 27, 2013 | |||||||||||||||||||||
2012 Strategic Realignment | |||||||||||||||||||||
As a result of the strategic review we completed during 2012 to identify opportunities to accelerate revenue growth and improve profitability, we have shifted our research and development investment and sales force to reflect this strategic realignment. In the prior year, we incurred charges to reorganization of business and other for employee termination benefits and other exit costs in connection with re-allocating research and development resources and re-aligning sales resources. | |||||||||||||||||||||
At each reporting date, we evaluate our accruals for exit costs and employee separation costs, which consist primarily of termination benefits (principally severance payments), to ensure that our accruals are still appropriate. In certain circumstances, accruals are no longer required because of efficiencies in carrying out our plans or because employees previously identified for separation resign unexpectedly and do not receive severance or are redeployed due to circumstances not foreseen when the original plans were initiated. We reverse accruals to earnings when it is determined they are no longer required. | |||||||||||||||||||||
The following table displays a roll-forward from January 1, 2013 to September 27, 2013 of the employee separation and exit cost accruals established related to the 2012 Strategic Realignment: | |||||||||||||||||||||
(in millions, except headcount) | Accruals at | Charges | Adjustments | Usage | Accruals at | ||||||||||||||||
January 1, 2013 | 27-Sep-13 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 6 | $ | — | $ | — | $ | (3 | ) | $ | 3 | ||||||||||
Selling, general and administrative | 11 | — | — | (7 | ) | 4 | |||||||||||||||
Research and development | 13 | — | — | (10 | ) | 3 | |||||||||||||||
Total | $ | 30 | $ | — | $ | — | $ | (20 | ) | $ | 10 | ||||||||||
Related headcount | 270 | — | — | (170 | ) | 100 | |||||||||||||||
Exit and Other Costs | $ | 2 | $ | 19 | $ | (2 | ) | $ | (17 | ) | $ | 2 | |||||||||
The $20 million used reflects cash payments made to employees separated as part of the 2012 Strategic Realignment during the first nine months of 2013. The accrual of $10 million at September 27, 2013 reflects the estimated liability to be paid to the remaining 100 employees to be separated through the end of 2013 based on current exchange rates. | |||||||||||||||||||||
Additionally, we recorded $19 million of exit and other costs related to (i) additional compensation for employees who were deemed crucial to the continuing implementation of the 2012 Strategic Realignment, (ii) a lease termination charge associated with our plans to consolidate workspace in Israel and (iii) exit costs for underutilized office space vacated in connection with plans to consolidate workspace in Austin, Texas in accordance with ASC Topic 420 “Exit or Disposal Cost Obligations” (“ASC Topic 420”), on which we recorded a $2 million adjustment during the first nine months of 2013. In addition to the separation and exit costs associated with 2012 Strategic Realignment, a $1 million net charge was recorded in reorganization of business and other related to indemnification provisions included in Gregg Lowe’s (our current president and CEO) employment agreement. | |||||||||||||||||||||
Reorganization of Business Program | |||||||||||||||||||||
In 2008, we began executing a series of restructuring initiatives that streamlined our cost structure and re-directed some research and development investments into expected growth markets ("Reorganization of Business Program"). The only remaining actions relating to this reorganization program are demolishing the buildings and selling the land located in Sendai, Japan and the decommissioning of the land and buildings at our Toulouse, France manufacturing facility, along with payment of the remaining separation costs. | |||||||||||||||||||||
The following table displays a roll-forward from January 1, 2013 to September 27, 2013 of the employee separation cost accruals established related to the Reorganization of Business Program: | |||||||||||||||||||||
(in millions, except headcount) | Accruals at | Charges | Adjustments & Currency Impact | Usage | Accruals at | ||||||||||||||||
January 1, 2013 | 27-Sep-13 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 77 | $ | — | $ | (1 | ) | $ | (52 | ) | $ | 24 | |||||||||
Selling, general and administrative | 2 | — | — | — | 2 | ||||||||||||||||
Research and development | 2 | — | — | — | 2 | ||||||||||||||||
Total | $ | 81 | $ | — | $ | (1 | ) | $ | (52 | ) | $ | 28 | |||||||||
Related headcount | 520 | — | — | (440 | ) | 80 | |||||||||||||||
The $52 million used reflects cash payments made to employees separated as part of the Reorganization of Business Program during the first nine months of 2013. We adjusted our anticipated future severance payments by $1 million to incorporate currency impact in the above presentation, which reflects the strengthening of the U.S. dollar against the Euro during the first nine months of 2013. The accrual of $28 million at September 27, 2013 reflects the estimated liability to be paid through 2014 (i) to the remaining 80 employees to be separated, along with previously separated employees still receiving severance benefits and (ii) for outplacement services and other severance-related costs, based on current exchange rates. | |||||||||||||||||||||
Disposition Activities | |||||||||||||||||||||
During the first nine months of 2013 and in connection with the closure of the Toulouse, France manufacturing facility which occurred during 2012, we recorded a benefit of $13 million related to proceeds received for the sale of certain of our equipment and machinery located at this facility, which was partially offset by a $5 million charge related to on-going closure and decommissioning costs. | |||||||||||||||||||||
Nine Months Ended September 28, 2012 | |||||||||||||||||||||
Chief Executive Leadership Transition | |||||||||||||||||||||
During the first nine months of 2012, a charge of $13 million was recorded in reorganization of business and other related to the change in the executive leadership of the Company. The majority of this amount was related to indemnification and other provisions included in our current CEO's employment agreement along with other costs associated with his hiring. We also recognized costs related to the successful transition of duties of our former Chairman of the Board and CEO. | |||||||||||||||||||||
Sendai, Japan Fabrication Facility and Design Center | |||||||||||||||||||||
On March 11, 2011, an earthquake off the coast of Japan caused extensive infrastructure, equipment and inventory damage to our 150 millimeter fabrication facility and design center in Sendai, Japan. During the first nine months of 2012, we recorded a $55 million benefit for business interruption insurance recoveries, which was partially offset by $4 million of expenses primarily related to on-going closure costs. Additionally, in the first nine months of 2012, the remaining $3 million of contract termination exit costs previously accrued in connection with the site closure were paid. | |||||||||||||||||||||
Reorganization of Business Program | |||||||||||||||||||||
The following table displays a roll-forward from January 1, 2012 to September 28, 2012 of the employee separation and exit cost accruals established related to the Reorganization of Business Program: | |||||||||||||||||||||
(in millions, except headcount) | Accruals at | Charges | Adjustments & Currency Impact | Usage | Accruals at | ||||||||||||||||
January 1, 2012 | 28-Sep-12 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 106 | $ | — | $ | 3 | $ | (21 | ) | $ | 88 | ||||||||||
Selling, general and administrative | 8 | — | (6 | ) | — | 2 | |||||||||||||||
Research and development | 14 | — | (12 | ) | — | 2 | |||||||||||||||
Total | $ | 128 | $ | — | $ | (15 | ) | $ | (21 | ) | $ | 92 | |||||||||
Related headcount | 720 | — | — | (170 | ) | 550 | |||||||||||||||
Exit and Other Costs | $ | 6 | $ | 2 | $ | — | $ | (2 | ) | $ | 6 | ||||||||||
The $21 million used reflects cash payments made to employees separated as part of the Reorganization of Business Program in the first nine months of 2012. We have adjusted our anticipated future severance payments by $15 million to incorporate currency impact in the above presentation. These adjustments reflect the strengthening of the U.S. dollar against the Euro partially offset by the weakening of the U.S. dollar against the Japanese Yen since the charges were originally recorded in 2009. Additionally, during the first nine months of 2012 we recorded $2 million in exit costs related to the termination of various supply agreements in connection with the closure of our Toulouse, France manufacturing facility. During this period, we also paid $2 million of exit costs related primarily to underutilized office space which was previously vacated in connection with our Reorganization of Business Program and in accordance with ASC Topic 420. | |||||||||||||||||||||
Other Contingencies | |||||||||||||||||||||
During the first nine months of 2012, we recorded a benefit of $18 million related to the expiration of indemnification obligations under a contract previously executed outside the ordinary course of business and the expiration of contractual obligations associated with the wind down of our cellular handset business. Additionally, we incurred $13 million of on-going closure and decommissioning costs associated with the closure our Toulouse, France manufacturing facility and a net $6 million contract termination charge related to our corporate jet lease agreement accounted for in accordance with ASC Topic 420. |
Supplemental_Guarantor_Condens
Supplemental Guarantor Condensed Consolidating Financial Statements | 9 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
Disclosure Supplemental Guarantor Condensed Consolidating Financial Statements Additional Information [Abstract] | ||||||||||||||||||||||||
Supplemental Guarantor Condensed Consolidating Financial Statements | Supplemental Guarantor Condensed Consolidating Financial Statements | |||||||||||||||||||||||
Pursuant to the terms of our acquisition by a consortium of private equity funds (“Sponsors”) in a transaction referred to as the “Merger” in December 2006, Freescale Inc. continues as a wholly-owned indirect subsidiary of Freescale Ltd. The reporting entity subsequent to the Merger is Freescale Ltd. | ||||||||||||||||||||||||
As a result of the Merger and subsequent debt refinancing transactions, we had $3,634 million aggregate principal amount of senior secured, senior unsecured and senior subordinated notes ("Senior Notes") outstanding as of September 27, 2013, as disclosed in Note 4, “Debt”. The senior secured notes are jointly and severally guaranteed on a secured, senior basis; the senior unsecured notes are jointly and severally guaranteed on an unsecured, senior basis; and, the senior subordinated notes are jointly and severally guaranteed on an unsecured, senior subordinated basis, in each case, subject to certain exceptions, by Freescale Ltd., its wholly owned direct and indirect subsidiaries created in connection with the Merger, and SigmaTel, LLC (together, the “Guarantors”). Each Guarantor fully and unconditionally guarantees, jointly and severally with the other Guarantors, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the obligations. As of September 27, 2013, other than SigmaTel, LLC, none of Freescale Inc.’s domestic or foreign subsidiaries (“Non-Guarantors”) guarantee the Senior Notes or Credit Facility. In the future, other subsidiaries may be required to guarantee all or a portion of the Senior Notes, if and to the extent they guarantee the Credit Facility. (The relationship between the Company and the parent companies is defined and discussed in Note 1, “Basis of Presentation and Principles of Consolidation,” to our consolidated financial statements in the Annual Report.) | ||||||||||||||||||||||||
The following tables present our financial position, results of operations and cash flows of Freescale Ltd., the Guarantors, Freescale Inc., the Non-Guarantors and eliminations as of September 27, 2013 and December 31, 2012 and for the three and nine months ended September 27, 2013 and September 28, 2012, to arrive at the information on a consolidated basis: | ||||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Three Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,446 | $ | 1,420 | $ | (1,781 | ) | $ | 1,085 | |||||||||||
Cost of sales | — | — | 984 | 1,409 | (1,781 | ) | 612 | |||||||||||||||||
Gross margin | — | — | 462 | 11 | — | 473 | ||||||||||||||||||
Selling, general and administrative | 2 | — | 163 | 50 | (95 | ) | 120 | |||||||||||||||||
Research and development | — | — | 125 | 66 | — | 191 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 3 | — | — | 3 | ||||||||||||||||||
Reorganization of business and other | — | — | 2 | — | — | 2 | ||||||||||||||||||
Operating (loss) earnings | (2 | ) | — | 169 | (105 | ) | 95 | 157 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||
Other income (expense), net | 75 | 75 | (90 | ) | 96 | (274 | ) | (118 | ) | |||||||||||||||
Earnings (loss) before income taxes | 73 | 75 | 78 | (9 | ) | (179 | ) | 38 | ||||||||||||||||
Income tax expense | — | — | 3 | 12 | — | 15 | ||||||||||||||||||
Net earnings (loss) | $ | 73 | $ | 75 | $ | 75 | $ | (21 | ) | $ | (179 | ) | $ | 23 | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Three Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 73 | $ | 75 | $ | 75 | $ | (21 | ) | $ | (179 | ) | $ | 23 | ||||||||||
Other comprehensive earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 3 | — | — | 3 | ||||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | 1 | — | — | 1 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains (losses) arising during the period | — | — | — | — | — | — | ||||||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | 1 | — | 1 | ||||||||||||||||||
Other comprehensive earnings | — | — | 4 | 1 | — | 5 | ||||||||||||||||||
Comprehensive earnings (loss) | $ | 73 | $ | 75 | $ | 79 | $ | (20 | ) | $ | (179 | ) | $ | 28 | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,966 | $ | 4,028 | $ | (4,890 | ) | $ | 3,104 | |||||||||||
Cost of sales | — | — | 2,866 | 3,816 | (4,890 | ) | 1,792 | |||||||||||||||||
Gross margin | — | — | 1,100 | 212 | — | 1,312 | ||||||||||||||||||
Selling, general and administrative | 5 | — | 473 | 141 | (273 | ) | 346 | |||||||||||||||||
Research and development | — | — | 360 | 200 | — | 560 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 10 | — | — | 10 | ||||||||||||||||||
Reorganization of business and other | — | — | 5 | 5 | — | 10 | ||||||||||||||||||
Operating (loss) earnings | (5 | ) | — | 252 | (134 | ) | 273 | 386 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (82 | ) | — | — | (82 | ) | ||||||||||||||||
Other income (expense), net | 115 | 115 | (52 | ) | 279 | (820 | ) | (363 | ) | |||||||||||||||
Earnings (loss) before income taxes | 110 | 115 | 118 | 145 | (547 | ) | (59 | ) | ||||||||||||||||
Income tax expense | — | — | 3 | 28 | — | 31 | ||||||||||||||||||
Net earnings (loss) | $ | 110 | $ | 115 | $ | 115 | $ | 117 | $ | (547 | ) | $ | (90 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 110 | $ | 115 | $ | 115 | $ | 117 | $ | (547 | ) | $ | (90 | ) | ||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized losses arising during the period | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains arising during the period | — | — | — | 2 | — | 2 | ||||||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | 2 | — | 2 | ||||||||||||||||||
Other comprehensive loss | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Comprehensive earnings (loss) | $ | 110 | $ | 115 | $ | 112 | $ | 117 | $ | (547 | ) | $ | (93 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Three Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,297 | $ | 1,333 | $ | (1,621 | ) | $ | 1,009 | |||||||||||
Cost of sales | — | — | 909 | 1,297 | (1,621 | ) | 585 | |||||||||||||||||
Gross margin | — | — | 388 | 36 | — | 424 | ||||||||||||||||||
Selling, general and administrative | 2 | — | 160 | 47 | (99 | ) | 110 | |||||||||||||||||
Research and development | — | — | 118 | 69 | — | 187 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 3 | — | — | 3 | ||||||||||||||||||
Reorganization of business and other | — | — | (15 | ) | 12 | — | (3 | ) | ||||||||||||||||
Operating (loss) earnings | (2 | ) | — | 122 | (92 | ) | 99 | 127 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Other (expense) income, net | (22 | ) | (22 | ) | (141 | ) | 97 | (46 | ) | (134 | ) | |||||||||||||
(Loss) earnings before income taxes | (24 | ) | (22 | ) | (22 | ) | 5 | 53 | (10 | ) | ||||||||||||||
Income tax expense | — | — | — | 14 | — | 14 | ||||||||||||||||||
Net loss | $ | (24 | ) | $ | (22 | ) | $ | (22 | ) | $ | (9 | ) | $ | 53 | $ | (24 | ) | |||||||
Supplemental Condensed Consolidating Statement of Comprehensive Loss | ||||||||||||||||||||||||
For the Three Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net loss | $ | (24 | ) | $ | (22 | ) | $ | (22 | ) | $ | (9 | ) | $ | 53 | $ | (24 | ) | |||||||
Other comprehensive earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | 1 | — | 1 | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 6 | — | — | 6 | ||||||||||||||||||
Reclassification adjustment for items included in net loss | — | — | 1 | — | — | 1 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Losses arising during the period | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Amortization of actuarial gains included in net loss | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings | — | — | 7 | — | — | 7 | ||||||||||||||||||
Comprehensive loss | $ | (24 | ) | $ | (22 | ) | $ | (15 | ) | $ | (9 | ) | $ | 53 | $ | (17 | ) | |||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Nine Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,950 | $ | 4,068 | $ | (5,030 | ) | $ | 2,988 | |||||||||||
Cost of sales | — | — | 2,922 | 3,830 | (5,030 | ) | 1,722 | |||||||||||||||||
Gross margin | — | — | 1,028 | 238 | — | 1,266 | ||||||||||||||||||
Selling, general and administrative | 5 | — | 450 | 141 | (268 | ) | 328 | |||||||||||||||||
Research and development | — | — | 352 | 204 | — | 556 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 10 | — | — | 10 | ||||||||||||||||||
Reorganization of business and other | — | — | (33 | ) | (2 | ) | — | (35 | ) | |||||||||||||||
Operating (loss) earnings | (5 | ) | — | 249 | (105 | ) | 268 | 407 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (31 | ) | — | — | (31 | ) | ||||||||||||||||
Other income (expense), net | 66 | 67 | (160 | ) | 272 | (649 | ) | (404 | ) | |||||||||||||||
Earnings (loss) before income taxes | 61 | 67 | 58 | 167 | (381 | ) | (28 | ) | ||||||||||||||||
Income tax (benefit) expense | — | — | (9 | ) | 48 | — | 39 | |||||||||||||||||
Net earnings (loss) | $ | 61 | $ | 67 | $ | 67 | $ | 119 | $ | (381 | ) | $ | (67 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Nine Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 61 | $ | 67 | $ | 67 | $ | 119 | $ | (381 | ) | $ | (67 | ) | ||||||||||
Other comprehensive earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 7 | — | — | 7 | ||||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | 2 | — | — | 2 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains (losses) arising during the period | — | — | — | — | — | — | ||||||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings | — | — | 9 | — | — | 9 | ||||||||||||||||||
Comprehensive earnings (loss) | $ | 61 | $ | 67 | $ | 76 | $ | 119 | $ | (381 | ) | $ | (58 | ) | ||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
27-Sep-13 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2 | $ | — | $ | — | $ | 698 | $ | — | $ | 700 | ||||||||||||
Restricted cash for bond redemptions | — | — | 758 | 24 | — | 782 | ||||||||||||||||||
Inter-company receivable | 158 | — | 443 | 480 | (1,081 | ) | — | |||||||||||||||||
Accounts receivable, net | — | — | 100 | 326 | — | 426 | ||||||||||||||||||
Inventory, net | — | — | 263 | 465 | — | 728 | ||||||||||||||||||
Other current assets | — | — | 78 | 63 | — | 141 | ||||||||||||||||||
Total current assets | 160 | — | 1,642 | 2,056 | (1,081 | ) | 2,777 | |||||||||||||||||
Property, plant and equipment, net | — | — | 323 | 362 | — | 685 | ||||||||||||||||||
Investment in affiliates | (4,642 | ) | (4,642 | ) | 1,505 | — | 7,779 | — | ||||||||||||||||
Intangible assets, net | — | — | 56 | — | — | 56 | ||||||||||||||||||
Inter-company note receivable | — | 117 | — | 160 | (277 | ) | — | |||||||||||||||||
Other assets, net | — | — | 151 | 150 | — | 301 | ||||||||||||||||||
Total Assets | $ | (4,482 | ) | $ | (4,525 | ) | $ | 3,677 | $ | 2,728 | $ | 6,421 | $ | 3,819 | ||||||||||
Liabilities and Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Current portion of long-term debt and capital lease obligations | $ | — | $ | — | $ | 753 | $ | — | $ | — | $ | 753 | ||||||||||||
Inter-company payable | — | — | 440 | 641 | (1,081 | ) | — | |||||||||||||||||
Accounts payable | — | — | 223 | 163 | — | 386 | ||||||||||||||||||
Accrued liabilities and other | — | — | 266 | 133 | — | 399 | ||||||||||||||||||
Total current liabilities | — | — | 1,682 | 937 | (1,081 | ) | 1,538 | |||||||||||||||||
Long-term debt | — | — | 6,375 | — | — | 6,375 | ||||||||||||||||||
Inter-company note payable | 43 | 117 | — | 117 | (277 | ) | — | |||||||||||||||||
Other liabilities | 1 | — | 262 | 169 | 432 | |||||||||||||||||||
Total liabilities | 44 | 117 | 8,319 | 1,223 | (1,358 | ) | 8,345 | |||||||||||||||||
Total shareholders’ (deficit) equity | (4,526 | ) | (4,642 | ) | (4,642 | ) | 1,505 | 7,779 | (4,526 | ) | ||||||||||||||
Total Liabilities and Shareholders’ (Deficit) Equity | $ | (4,482 | ) | $ | (4,525 | ) | $ | 3,677 | $ | 2,728 | $ | 6,421 | 3,819 | |||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | — | $ | 104 | $ | 606 | $ | — | $ | 711 | ||||||||||||
Inter-company receivable | 213 | — | 397 | 459 | (1,069 | ) | — | |||||||||||||||||
Accounts receivable, net | — | — | 99 | 285 | — | 384 | ||||||||||||||||||
Inventory, net | — | — | 280 | 517 | — | 797 | ||||||||||||||||||
Other current assets | — | — | 105 | 61 | — | 166 | ||||||||||||||||||
Total current assets | 214 | — | 985 | 1,928 | (1,069 | ) | 2,058 | |||||||||||||||||
Property, plant and equipment, net | — | — | 346 | 369 | — | 715 | ||||||||||||||||||
Investment in affiliates | (4,717 | ) | (4,717 | ) | 1,600 | — | 7,834 | — | ||||||||||||||||
Intangible assets, net | — | — | 64 | — | — | 64 | ||||||||||||||||||
Inter-company note receivable | — | 114 | — | 157 | (271 | ) | — | |||||||||||||||||
Other assets, net | — | — | 166 | 168 | — | 334 | ||||||||||||||||||
Total Assets | $ | (4,503 | ) | $ | (4,603 | ) | $ | 3,161 | $ | 2,622 | $ | 6,494 | $ | 3,171 | ||||||||||
Liabilities and Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Current portion of long-term debt and capital lease obligations | $ | — | $ | — | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||||||
Inter-company payable | — | — | 697 | 372 | (1,069 | ) | — | |||||||||||||||||
Accounts payable | — | — | 179 | 144 | — | 323 | ||||||||||||||||||
Accrued liabilities and other | — | — | 337 | 206 | — | 543 | ||||||||||||||||||
Total current liabilities | — | — | 1,219 | 722 | (1,069 | ) | 872 | |||||||||||||||||
Long-term debt | — | — | 6,375 | — | — | 6,375 | ||||||||||||||||||
Inter-company note payable | 43 | 114 | — | 114 | (271 | ) | — | |||||||||||||||||
Other liabilities | 1 | — | 284 | 170 | — | 455 | ||||||||||||||||||
Total liabilities | 44 | 114 | 7,878 | 1,006 | (1,340 | ) | 7,702 | |||||||||||||||||
Total shareholders’ (deficit) equity | (4,547 | ) | (4,717 | ) | (4,717 | ) | 1,616 | 7,834 | (4,531 | ) | ||||||||||||||
Total Liabilities and Shareholders’ (Deficit) Equity | $ | (4,503 | ) | $ | (4,603 | ) | $ | 3,161 | $ | 2,622 | $ | 6,494 | $ | 3,171 | ||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by (used for) operating activities | $ | 41 | $ | — | $ | (71 | ) | $ | 433 | $ | (200 | ) | $ | 203 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (42 | ) | (65 | ) | — | (107 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 6 | — | 6 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (23 | ) | (27 | ) | — | (50 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||
Inter-company loans and capital transactions | (102 | ) | (105 | ) | 26 | (3 | ) | 184 | — | |||||||||||||||
Cash flow used for investing activities | (102 | ) | (105 | ) | (40 | ) | (89 | ) | 184 | (152 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (3,319 | ) | — | — | (3,319 | ) | ||||||||||||||||
Debt issuance proceeds, net of debt issuance costs | — | — | 3,982 | — | — | 3,982 | ||||||||||||||||||
Restricted cash for bond redemptions | — | — | (758 | ) | (24 | ) | — | (782 | ) | |||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 62 | — | — | — | — | 62 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | — | 105 | 102 | (223 | ) | 16 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 62 | 105 | 7 | (247 | ) | 16 | (57 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 1 | — | (104 | ) | 92 | — | (11 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of period | 1 | — | 104 | 606 | — | 711 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 2 | $ | — | $ | — | $ | 698 | $ | — | $ | 700 | ||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Nine Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by operating activities | $ | 4 | $ | — | $ | 265 | $ | 127 | $ | (128 | ) | $ | 268 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (34 | ) | (51 | ) | — | (85 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 1 | — | 1 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (25 | ) | (35 | ) | — | (60 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | 1 | — | — | 1 | ||||||||||||||||||
Inter-company loans and capital transactions | (28 | ) | (28 | ) | 10 | (8 | ) | 54 | — | |||||||||||||||
Cash flow used for investing activities | (28 | ) | (28 | ) | (48 | ) | (93 | ) | 54 | (143 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (631 | ) | (1 | ) | — | (632 | ) | |||||||||||||||
Debt issuance proceeds, net of debt issuance costs | — | — | 481 | — | — | 481 | ||||||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 19 | — | — | — | — | 19 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | 6 | 29 | 25 | (134 | ) | 74 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 25 | 29 | (125 | ) | (135 | ) | 74 | (132 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 1 | 1 | 92 | (103 | ) | — | (9 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of period | 2 | — | 56 | 714 | — | 772 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 3 | $ | 1 | $ | 148 | $ | 611 | $ | — | $ | 763 | ||||||||||||
Overview_and_Basis_of_Presenta1
Overview and Basis of Presentation Basis of Accounting Policy (Policies) | 9 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | |
Nature of Operations [Text Block] | Overview: Freescale Semiconductor, Ltd. (“Freescale Ltd.”), based in Austin, Texas, is a global leader in microcontrollers (MCUs) and digital networking processors. These embedded processing solutions are the keystones of the emerging Internet of Things, a network of smart devices that will help make our lives easier, safer and more productive. We complement our embedded processors with analog, sensor and radio frequency (RF) devices to help provide highly integrated solutions that streamline customer development efforts and shorten their time to market. Our product and strategy focus is on the need for increased connectivity and enhanced intelligence that is at the heart of the fastest growing semiconductor applications. Growing electronic content in automobiles, increasing demands for networking bandwidth, connected industrial and medical electronics and the proliferation of smart mobile devices are the growth drivers of our business. We have a heritage of innovation and product leadership spanning over 50 years and have an extensive intellectual property portfolio. Our close customer relationships have been built upon years of collaborative product development. We sell our products directly to original equipment manufacturers, distributors, original design manufacturers and contract manufacturers. Freescale Ltd. and its wholly-owned subsidiaries, including Freescale Semiconductor, Inc. (“Freescale Inc.”), are collectively referred to as the “Company,” “Freescale,” “we,” “us” or “our,” as the context requires. |
Consolidation [Policy Text Block] | Basis of Presentation: The accompanying condensed consolidated financial statements for Freescale Ltd. as of September 27, 2013 and December 31, 2012, and for the three and nine months ended September 27, 2013 and September 28, 2012 are unaudited, with the December 31, 2012 amounts included herein derived from the audited consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the financial position, results of operations and cash flows as of September 27, 2013 and for all periods presented. Certain amounts reported in previous periods have been reclassified to conform to the current period presentation. |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our December 31, 2012 Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on March 7, 2013 (the "Annual Report"). The results of operations for the three and nine months ended September 27, 2013 are not necessarily indicative of the operating results to be expected for the full year. | |
Use of Estimates [Policy Text Block] | The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. In addition to the items described below, our significant accounting policies and critical estimates are disclosed in our Annual Report. Refer to “Significant Accounting Policies and Critical Estimates” within “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for more information. |
Fair_Value_Measurement_Fair_Va
Fair Value Measurement Fair Value Measurement (Policies) | 9 Months Ended |
Sep. 27, 2013 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy | Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are market inputs participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: |
Level 1 – quoted prices in active markets for identical assets or liabilities; | |
Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable; and, | |
Level 3 – inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). |
Other_Financial_Data_Tables
Other Financial Data (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Components of Other Expense, Net | The following table displays the amounts comprising other expense, net in the accompanying Condensed Consolidated Statements of Operations: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest expense | $ | (120 | ) | $ | (127 | ) | $ | (368 | ) | $ | (390 | ) | |||||
Interest income | 2 | 2 | 4 | 7 | |||||||||||||
Interest expense, net | (118 | ) | (125 | ) | (364 | ) | (383 | ) | |||||||||
Other, net | — | (9 | ) | 1 | (21 | ) | |||||||||||
Other expense, net | $ | (118 | ) | $ | (134 | ) | $ | (363 | ) | $ | (404 | ) | |||||
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Net Loss Per Common Share | The following is a reconciliation of the numerators and denominators of the basic and diluted net earnings (loss) per common share computations for the periods presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions, except per share amount) | September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic net earnings (loss) per share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net earnings (loss) | $ | 23 | $ | (24 | ) | $ | (90 | ) | $ | (67 | ) | ||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding (1) | 258 | 249 | 255 | 248 | |||||||||||||
Basic net earnings (loss) per share | $ | 0.09 | $ | (0.10 | ) | $ | (0.35 | ) | $ | (0.27 | ) | ||||||
Diluted net earnings (loss) per share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net earnings (loss) | $ | 23 | $ | (24 | ) | $ | (90 | ) | $ | (67 | ) | ||||||
Denominator: | |||||||||||||||||
Number of shares used in basic computation (1) | 258 | 249 | 255 | 248 | |||||||||||||
Add: Incremental shares for dilutive effect of warrants (2) | — | — | — | — | |||||||||||||
Add: Incremental shares for dilutive effect of stock options (3) | 2 | 2 | 2 | 2 | |||||||||||||
Add: Incremental shares for dilutive effect of unvested RSUs (4) | 1 | — | — | 1 | |||||||||||||
Adjusted weighted average common shares outstanding | 261 | 251 | 257 | 251 | |||||||||||||
Diluted net earnings (loss) per share (5) | $ | 0.09 | $ | (0.10 | ) | $ | (0.35 | ) | $ | (0.27 | ) | ||||||
________________ | |||||||||||||||||
-1 | Weighted average common shares outstanding includes outstanding common shares of the Company and unissued common shares underlying vested RSUs. | ||||||||||||||||
-2 | A warrant to purchase an aggregate of 10 million common shares at $36.12 per share was outstanding during all periods presented, but was not included in the computation of diluted EPS because the warrant’s exercise price was greater than the average estimated fair value of the common shares. | ||||||||||||||||
-3 | Stock options to purchase an aggregate of 4 million common shares that were outstanding during both the third quarter and first nine months of 2013 and 5 million and 4 million common shares that were outstanding during the third quarter and first nine months of 2012, respectively, were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average estimated fair value of the common shares or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense, potential windfall tax benefits and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. | ||||||||||||||||
-4 | Unvested RSUs of 1 million for the first nine months of 2013 and 4 million and less than 1 million for the third quarter and first nine months of 2012, respectively, were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and potential windfall tax benefits was greater than the weighted average number of outstanding unvested RSUs. There were no anti-dilutive unvested RSUs for the third quarter of 2013. | ||||||||||||||||
-5 | No dilutive securities have been included in the diluted net loss per share calculation in periods where a net loss was incurred. | ||||||||||||||||
Schedule of Inventory | Inventory, net consisted of the following: | ||||||||||||||||
September 27, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Work in process and raw materials | $ | 526 | $ | 578 | |||||||||||||
Finished goods | 202 | 219 | |||||||||||||||
Inventory, net | $ | 728 | $ | 797 | |||||||||||||
Accumulated Other Comprehensive Earnings | Accumulated Other Comprehensive Earnings | ||||||||||||||||
Unrealized | Unrealized | Foreign Currency | Total | ||||||||||||||
Gain | (Loss) Gain on | Translation | |||||||||||||||
(Loss) on | Postretirement | ||||||||||||||||
Derivatives | Obligations | ||||||||||||||||
Balance at January 1, 2013 | $ | 2 | $ | (13 | ) | $ | 25 | $ | 14 | ||||||||
Current period net change | (3 | ) | 4 | (4 | ) | (3 | ) | ||||||||||
Balance at September 27, 2013 | $ | (1 | ) | $ | (9 | ) | $ | 21 | $ | 11 | |||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis | Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | ||||||||||||
We measure cash and cash equivalents and derivative contracts at fair value on a recurring basis. The tables below set forth, by level, the fair value of these financial assets and liabilities as of September 27, 2013 and December 31, 2012, respectively. The table does not include assets and liabilities which are measured at historical cost or on any basis other than fair value. In the first nine months of 2013 and 2012, there were no transfers between Level 1 and Level 2. We had no Level 3 instruments at September 27, 2013 or December 31, 2012. | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of September 27, 2013 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Money market mutual funds (1) | $ | 177 | $ | 177 | $ | — | |||||||
Time deposits (1) | 311 | 311 | — | ||||||||||
Foreign currency derivative contracts (2) | 4 | — | 4 | ||||||||||
Interest rate swap agreements (3) | 1 | — | 1 | ||||||||||
Total Assets | $ | 493 | $ | 488 | $ | 5 | |||||||
Liabilities | |||||||||||||
Foreign currency derivative contracts (2) | $ | 2 | $ | — | $ | 2 | |||||||
Interest rate swap agreements (3) | 6 | — | 6 | ||||||||||
Commodity derivative contracts (4) | 1 | — | 1 | ||||||||||
Total Liabilities | $ | 9 | $ | — | $ | 9 | |||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of December 31, 2012 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Money market mutual funds (1) | $ | 192 | $ | 192 | $ | — | |||||||
Time deposits (1) | 285 | 285 | — | ||||||||||
Foreign currency derivative contracts (2) | 3 | — | 3 | ||||||||||
Total Assets | $ | 480 | $ | 477 | $ | 3 | |||||||
Liabilities | |||||||||||||
Foreign currency derivative contracts (2) | $ | 1 | $ | — | $ | 1 | |||||||
Interest rate swap agreements (3) | 17 | — | 17 | ||||||||||
Total Liabilities | $ | 18 | $ | — | $ | 18 | |||||||
The following footnotes indicate where the noted items are reported in our accompanying Condensed Consolidated Balance Sheets at September 27, 2013 and December 31, 2012: | |||||||||||||
-1 | Money market funds and time deposits are reported as cash and cash equivalents. | ||||||||||||
-2 | Foreign currency derivative contracts are reported as other current assets or accrued liabilities and other. | ||||||||||||
-3 | Interest rate swap arrangements are reported as current assets, accrued liabilities and other or other liabilities. | ||||||||||||
-4 | Commodity derivative contracts are reported as accrued liabilities and other. The fair value at December 31, 2012 was less than $1 million. |
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Carrying Value of Long-term Debt | The carrying value of our long-term debt at September 27, 2013 and December 31, 2012 consisted of the following: | |||||||
September 27, | December 31, | |||||||
2013 | 2012 | |||||||
Extended maturity term loan due 2016 | $ | — | $ | 2,215 | ||||
2012 Term Loan due 2019 | — | 491 | ||||||
2016 Term Loan | 348 | — | ||||||
2020 Term Loan | 2,354 | — | ||||||
2021 Term Loan | 792 | — | ||||||
Replacement revolver due 2016 | — | — | ||||||
Senior secured 10.125% notes due 2018 | 221 | 663 | ||||||
Senior secured 9.25% notes due 2018 | 1,380 | 1,380 | ||||||
Senior secured 5.00% notes due 2021 | 500 | — | ||||||
Senior unsecured floating rate notes due 2014(1) | 57 | 57 | ||||||
Senior unsecured 8.875% notes due 2014 | — | 98 | ||||||
Senior unsecured 10.75% notes due 2020 | 473 | 473 | ||||||
Senior unsecured 8.05% notes due 2020 | 739 | 739 | ||||||
Senior subordinated 10.125% notes due 2016 | 264 | 264 | ||||||
Total debt | 7,128 | 6,380 | ||||||
Less: current maturities | (753 | ) | (5 | ) | ||||
Total long-term debt | $ | 6,375 | $ | 6,375 | ||||
-1 | The senior unsecured floating rate notes due 2014 bear interest at a rate, reset quarterly, equal to three month LIBOR (0.25% in effect on September 27, 2013) plus 3.875% per annum. |
Risk_Management_Tables
Risk Management (Tables) | 9 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Disclosure Risk Management Additional Information [Abstract] | |||||||||||
Notional Amount of Foreign Exchange Hedge | The following table shows, in millions of U.S. dollars, the notional amounts of the most significant net foreign exchange hedge positions for outstanding foreign exchange contracts not designated as accounting hedges as of September 27, 2013 and December 31, 2012: | ||||||||||
Buy (Sell) | September 27, | December 31, | |||||||||
2013 | 2012 | ||||||||||
Euro | $ | 36 | $ | 104 | |||||||
Japanese Yen | $ | 34 | $ | 28 | |||||||
Chinese Renminbi | $ | 20 | $ | 23 | |||||||
Malaysian Ringgit | $ | 16 | $ | 26 | |||||||
Indian Rupee | $ | (6 | ) | $ | (3 | ) | |||||
Schedule of Derivative Instruments | The following table shows, in millions of U.S. dollars, the notional amounts of the foreign exchange hedge positions for outstanding foreign exchange contracts designated as cash flow hedges under ASC Topic 815 as of September 27, 2013 and December 31, 2012: | ||||||||||
Buy (Sell) | September 27, | December 31, | Hedged Exposure | ||||||||
2013 | 2012 | ||||||||||
Malaysian Ringgit | $ | 107 | $ | 68 | Cost of sales | ||||||
Chinese Renminbi | $ | 98 | $ | 53 | Cost of sales | ||||||
$ | 24 | $ | 13 | Selling, general and administrative | |||||||
$ | 24 | $ | 11 | Research and development | |||||||
Japanese Yen | $ | 34 | $ | — | Cost of sales | ||||||
Euro | $ | (42 | ) | $ | — | Net sales | |||||
Share_and_Equitybased_Compensa1
Share and Equity-based Compensation Share and Equity-based Compensation (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of the 2011 Options was estimated on the date of grant using the Black-Scholes option pricing model. The assumptions used in the model are outlined in the following table: | ||||||||||||
Nine Months Ended | |||||||||||||
September 27, | September 28, | ||||||||||||
2013 | 2012 | ||||||||||||
Weighted average grant date fair value per share | $ | 7.03 | $ | 7.1 | |||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 60.73 | % | 62.27 | % | |||||||||
Expected lives (in years) | 4.75 | 5.08 | |||||||||||
Risk free interest rate | 0.75 | % | 0.94 | % | |||||||||
Expected dividend yield | — | % | — | % | |||||||||
Schedule of Stock Options Roll Forward | A summary of changes in the 2011 Options outstanding during the nine months ended September 27, 2013 is presented below: | ||||||||||||
Stock Options | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
(in thousands) | exercise price | Remaining | Intrinsic Value | ||||||||||
per share | Contractual | (in millions) | |||||||||||
Term (Years) | |||||||||||||
Balance at January 1, 2013 | 4,606 | $ | 12.93 | 6 | $ | 2 | |||||||
Granted | 2,187 | $ | 14.03 | ||||||||||
Terminated, canceled or expired | (585 | ) | $ | 14.92 | |||||||||
Exercised | (238 | ) | $ | 14.48 | |||||||||
Balance at September 27, 2013 | 5,970 | $ | 13.08 | 6 | $ | 20 | |||||||
Exercisable options at September 27, 2013 | 789 | $ | 12.83 | 6 | $ | 3 | |||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of changes in the RSUs and PRSUs outstanding under the 2011 Plan during the nine months ended September 27, 2013 is presented below: | ||||||||||||
RSUs and PRSUs | |||||||||||||
(in thousands) | |||||||||||||
Non-vested RSU and PRSU balance at January 1, 2013 | 4,520 | ||||||||||||
Granted | 4,640 | ||||||||||||
Issued | (801 | ) | |||||||||||
Terminated, canceled or expired | (642 | ) | |||||||||||
Non-vested RSU and PRSU balance at September 27, 2013 | 7,717 | ||||||||||||
Reorganization_of_Business_and1
Reorganization of Business and Other (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||
2012 Strategic Realignment Plan [Member] | |||||||||||||||||||||
Schedule of Employee Termination Benefits and Exit Cost Accruals | The following table displays a roll-forward from January 1, 2013 to September 27, 2013 of the employee separation and exit cost accruals established related to the 2012 Strategic Realignment: | ||||||||||||||||||||
(in millions, except headcount) | Accruals at | Charges | Adjustments | Usage | Accruals at | ||||||||||||||||
January 1, 2013 | 27-Sep-13 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 6 | $ | — | $ | — | $ | (3 | ) | $ | 3 | ||||||||||
Selling, general and administrative | 11 | — | — | (7 | ) | 4 | |||||||||||||||
Research and development | 13 | — | — | (10 | ) | 3 | |||||||||||||||
Total | $ | 30 | $ | — | $ | — | $ | (20 | ) | $ | 10 | ||||||||||
Related headcount | 270 | — | — | (170 | ) | 100 | |||||||||||||||
Exit and Other Costs | $ | 2 | $ | 19 | $ | (2 | ) | $ | (17 | ) | $ | 2 | |||||||||
Reorganization Of Business Program [Member] | |||||||||||||||||||||
Schedule of Employee Termination Benefits and Exit Cost Accruals | The following table displays a roll-forward from January 1, 2012 to September 28, 2012 of the employee separation and exit cost accruals established related to the Reorganization of Business Program: | ||||||||||||||||||||
(in millions, except headcount) | Accruals at | Charges | Adjustments & Currency Impact | Usage | Accruals at | ||||||||||||||||
January 1, 2012 | 28-Sep-12 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 106 | $ | — | $ | 3 | $ | (21 | ) | $ | 88 | ||||||||||
Selling, general and administrative | 8 | — | (6 | ) | — | 2 | |||||||||||||||
Research and development | 14 | — | (12 | ) | — | 2 | |||||||||||||||
Total | $ | 128 | $ | — | $ | (15 | ) | $ | (21 | ) | $ | 92 | |||||||||
Related headcount | 720 | — | — | (170 | ) | 550 | |||||||||||||||
Exit and Other Costs | $ | 6 | $ | 2 | $ | — | $ | (2 | ) | $ | 6 | ||||||||||
The following table displays a roll-forward from January 1, 2013 to September 27, 2013 of the employee separation cost accruals established related to the Reorganization of Business Program: | |||||||||||||||||||||
(in millions, except headcount) | Accruals at | Charges | Adjustments & Currency Impact | Usage | Accruals at | ||||||||||||||||
January 1, 2013 | 27-Sep-13 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 77 | $ | — | $ | (1 | ) | $ | (52 | ) | $ | 24 | |||||||||
Selling, general and administrative | 2 | — | — | — | 2 | ||||||||||||||||
Research and development | 2 | — | — | — | 2 | ||||||||||||||||
Total | $ | 81 | $ | — | $ | (1 | ) | $ | (52 | ) | $ | 28 | |||||||||
Related headcount | 520 | — | — | (440 | ) | 80 | |||||||||||||||
Supplemental_Guarantor_Condens1
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
Disclosure Supplemental Guarantor Condensed Consolidating Financial Statements Additional Information [Abstract] | ||||||||||||||||||||||||
Schedule of Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Nine Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,950 | $ | 4,068 | $ | (5,030 | ) | $ | 2,988 | |||||||||||
Cost of sales | — | — | 2,922 | 3,830 | (5,030 | ) | 1,722 | |||||||||||||||||
Gross margin | — | — | 1,028 | 238 | — | 1,266 | ||||||||||||||||||
Selling, general and administrative | 5 | — | 450 | 141 | (268 | ) | 328 | |||||||||||||||||
Research and development | — | — | 352 | 204 | — | 556 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 10 | — | — | 10 | ||||||||||||||||||
Reorganization of business and other | — | — | (33 | ) | (2 | ) | — | (35 | ) | |||||||||||||||
Operating (loss) earnings | (5 | ) | — | 249 | (105 | ) | 268 | 407 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (31 | ) | — | — | (31 | ) | ||||||||||||||||
Other income (expense), net | 66 | 67 | (160 | ) | 272 | (649 | ) | (404 | ) | |||||||||||||||
Earnings (loss) before income taxes | 61 | 67 | 58 | 167 | (381 | ) | (28 | ) | ||||||||||||||||
Income tax (benefit) expense | — | — | (9 | ) | 48 | — | 39 | |||||||||||||||||
Net earnings (loss) | $ | 61 | $ | 67 | $ | 67 | $ | 119 | $ | (381 | ) | $ | (67 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Three Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,446 | $ | 1,420 | $ | (1,781 | ) | $ | 1,085 | |||||||||||
Cost of sales | — | — | 984 | 1,409 | (1,781 | ) | 612 | |||||||||||||||||
Gross margin | — | — | 462 | 11 | — | 473 | ||||||||||||||||||
Selling, general and administrative | 2 | — | 163 | 50 | (95 | ) | 120 | |||||||||||||||||
Research and development | — | — | 125 | 66 | — | 191 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 3 | — | — | 3 | ||||||||||||||||||
Reorganization of business and other | — | — | 2 | — | — | 2 | ||||||||||||||||||
Operating (loss) earnings | (2 | ) | — | 169 | (105 | ) | 95 | 157 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||
Other income (expense), net | 75 | 75 | (90 | ) | 96 | (274 | ) | (118 | ) | |||||||||||||||
Earnings (loss) before income taxes | 73 | 75 | 78 | (9 | ) | (179 | ) | 38 | ||||||||||||||||
Income tax expense | — | — | 3 | 12 | — | 15 | ||||||||||||||||||
Net earnings (loss) | $ | 73 | $ | 75 | $ | 75 | $ | (21 | ) | $ | (179 | ) | $ | 23 | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,966 | $ | 4,028 | $ | (4,890 | ) | $ | 3,104 | |||||||||||
Cost of sales | — | — | 2,866 | 3,816 | (4,890 | ) | 1,792 | |||||||||||||||||
Gross margin | — | — | 1,100 | 212 | — | 1,312 | ||||||||||||||||||
Selling, general and administrative | 5 | — | 473 | 141 | (273 | ) | 346 | |||||||||||||||||
Research and development | — | — | 360 | 200 | — | 560 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 10 | — | — | 10 | ||||||||||||||||||
Reorganization of business and other | — | — | 5 | 5 | — | 10 | ||||||||||||||||||
Operating (loss) earnings | (5 | ) | — | 252 | (134 | ) | 273 | 386 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (82 | ) | — | — | (82 | ) | ||||||||||||||||
Other income (expense), net | 115 | 115 | (52 | ) | 279 | (820 | ) | (363 | ) | |||||||||||||||
Earnings (loss) before income taxes | 110 | 115 | 118 | 145 | (547 | ) | (59 | ) | ||||||||||||||||
Income tax expense | — | — | 3 | 28 | — | 31 | ||||||||||||||||||
Net earnings (loss) | $ | 110 | $ | 115 | $ | 115 | $ | 117 | $ | (547 | ) | $ | (90 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Three Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,297 | $ | 1,333 | $ | (1,621 | ) | $ | 1,009 | |||||||||||
Cost of sales | — | — | 909 | 1,297 | (1,621 | ) | 585 | |||||||||||||||||
Gross margin | — | — | 388 | 36 | — | 424 | ||||||||||||||||||
Selling, general and administrative | 2 | — | 160 | 47 | (99 | ) | 110 | |||||||||||||||||
Research and development | — | — | 118 | 69 | — | 187 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 3 | — | — | 3 | ||||||||||||||||||
Reorganization of business and other | — | — | (15 | ) | 12 | — | (3 | ) | ||||||||||||||||
Operating (loss) earnings | (2 | ) | — | 122 | (92 | ) | 99 | 127 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Other (expense) income, net | (22 | ) | (22 | ) | (141 | ) | 97 | (46 | ) | (134 | ) | |||||||||||||
(Loss) earnings before income taxes | (24 | ) | (22 | ) | (22 | ) | 5 | 53 | (10 | ) | ||||||||||||||
Income tax expense | — | — | — | 14 | — | 14 | ||||||||||||||||||
Net loss | $ | (24 | ) | $ | (22 | ) | $ | (22 | ) | $ | (9 | ) | $ | 53 | $ | (24 | ) | |||||||
Schedule of Supplemental Condensed Consolidated Statements of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Nine Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 61 | $ | 67 | $ | 67 | $ | 119 | $ | (381 | ) | $ | (67 | ) | ||||||||||
Other comprehensive earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 7 | — | — | 7 | ||||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | 2 | — | — | 2 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains (losses) arising during the period | — | — | — | — | — | — | ||||||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings | — | — | 9 | — | — | 9 | ||||||||||||||||||
Comprehensive earnings (loss) | $ | 61 | $ | 67 | $ | 76 | $ | 119 | $ | (381 | ) | $ | (58 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Loss | ||||||||||||||||||||||||
For the Three Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net loss | $ | (24 | ) | $ | (22 | ) | $ | (22 | ) | $ | (9 | ) | $ | 53 | $ | (24 | ) | |||||||
Other comprehensive earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | 1 | — | 1 | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 6 | — | — | 6 | ||||||||||||||||||
Reclassification adjustment for items included in net loss | — | — | 1 | — | — | 1 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Losses arising during the period | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Amortization of actuarial gains included in net loss | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings | — | — | 7 | — | — | 7 | ||||||||||||||||||
Comprehensive loss | $ | (24 | ) | $ | (22 | ) | $ | (15 | ) | $ | (9 | ) | $ | 53 | $ | (17 | ) | |||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 110 | $ | 115 | $ | 115 | $ | 117 | $ | (547 | ) | $ | (90 | ) | ||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized losses arising during the period | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains arising during the period | — | — | — | 2 | — | 2 | ||||||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | 2 | — | 2 | ||||||||||||||||||
Other comprehensive loss | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Comprehensive earnings (loss) | $ | 110 | $ | 115 | $ | 112 | $ | 117 | $ | (547 | ) | $ | (93 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Three Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 73 | $ | 75 | $ | 75 | $ | (21 | ) | $ | (179 | ) | $ | 23 | ||||||||||
Other comprehensive earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 3 | — | — | 3 | ||||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | 1 | — | — | 1 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains (losses) arising during the period | — | — | — | — | — | — | ||||||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | 1 | — | 1 | ||||||||||||||||||
Other comprehensive earnings | — | — | 4 | 1 | — | 5 | ||||||||||||||||||
Comprehensive earnings (loss) | $ | 73 | $ | 75 | $ | 79 | $ | (20 | ) | $ | (179 | ) | $ | 28 | ||||||||||
Schedule of Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | — | $ | 104 | $ | 606 | $ | — | $ | 711 | ||||||||||||
Inter-company receivable | 213 | — | 397 | 459 | (1,069 | ) | — | |||||||||||||||||
Accounts receivable, net | — | — | 99 | 285 | — | 384 | ||||||||||||||||||
Inventory, net | — | — | 280 | 517 | — | 797 | ||||||||||||||||||
Other current assets | — | — | 105 | 61 | — | 166 | ||||||||||||||||||
Total current assets | 214 | — | 985 | 1,928 | (1,069 | ) | 2,058 | |||||||||||||||||
Property, plant and equipment, net | — | — | 346 | 369 | — | 715 | ||||||||||||||||||
Investment in affiliates | (4,717 | ) | (4,717 | ) | 1,600 | — | 7,834 | — | ||||||||||||||||
Intangible assets, net | — | — | 64 | — | — | 64 | ||||||||||||||||||
Inter-company note receivable | — | 114 | — | 157 | (271 | ) | — | |||||||||||||||||
Other assets, net | — | — | 166 | 168 | — | 334 | ||||||||||||||||||
Total Assets | $ | (4,503 | ) | $ | (4,603 | ) | $ | 3,161 | $ | 2,622 | $ | 6,494 | $ | 3,171 | ||||||||||
Liabilities and Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Current portion of long-term debt and capital lease obligations | $ | — | $ | — | $ | 6 | $ | — | $ | — | $ | 6 | ||||||||||||
Inter-company payable | — | — | 697 | 372 | (1,069 | ) | — | |||||||||||||||||
Accounts payable | — | — | 179 | 144 | — | 323 | ||||||||||||||||||
Accrued liabilities and other | — | — | 337 | 206 | — | 543 | ||||||||||||||||||
Total current liabilities | — | — | 1,219 | 722 | (1,069 | ) | 872 | |||||||||||||||||
Long-term debt | — | — | 6,375 | — | — | 6,375 | ||||||||||||||||||
Inter-company note payable | 43 | 114 | — | 114 | (271 | ) | — | |||||||||||||||||
Other liabilities | 1 | — | 284 | 170 | — | 455 | ||||||||||||||||||
Total liabilities | 44 | 114 | 7,878 | 1,006 | (1,340 | ) | 7,702 | |||||||||||||||||
Total shareholders’ (deficit) equity | (4,547 | ) | (4,717 | ) | (4,717 | ) | 1,616 | 7,834 | (4,531 | ) | ||||||||||||||
Total Liabilities and Shareholders’ (Deficit) Equity | $ | (4,503 | ) | $ | (4,603 | ) | $ | 3,161 | $ | 2,622 | $ | 6,494 | $ | 3,171 | ||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
27-Sep-13 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2 | $ | — | $ | — | $ | 698 | $ | — | $ | 700 | ||||||||||||
Restricted cash for bond redemptions | — | — | 758 | 24 | — | 782 | ||||||||||||||||||
Inter-company receivable | 158 | — | 443 | 480 | (1,081 | ) | — | |||||||||||||||||
Accounts receivable, net | — | — | 100 | 326 | — | 426 | ||||||||||||||||||
Inventory, net | — | — | 263 | 465 | — | 728 | ||||||||||||||||||
Other current assets | — | — | 78 | 63 | — | 141 | ||||||||||||||||||
Total current assets | 160 | — | 1,642 | 2,056 | (1,081 | ) | 2,777 | |||||||||||||||||
Property, plant and equipment, net | — | — | 323 | 362 | — | 685 | ||||||||||||||||||
Investment in affiliates | (4,642 | ) | (4,642 | ) | 1,505 | — | 7,779 | — | ||||||||||||||||
Intangible assets, net | — | — | 56 | — | — | 56 | ||||||||||||||||||
Inter-company note receivable | — | 117 | — | 160 | (277 | ) | — | |||||||||||||||||
Other assets, net | — | — | 151 | 150 | — | 301 | ||||||||||||||||||
Total Assets | $ | (4,482 | ) | $ | (4,525 | ) | $ | 3,677 | $ | 2,728 | $ | 6,421 | $ | 3,819 | ||||||||||
Liabilities and Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Current portion of long-term debt and capital lease obligations | $ | — | $ | — | $ | 753 | $ | — | $ | — | $ | 753 | ||||||||||||
Inter-company payable | — | — | 440 | 641 | (1,081 | ) | — | |||||||||||||||||
Accounts payable | — | — | 223 | 163 | — | 386 | ||||||||||||||||||
Accrued liabilities and other | — | — | 266 | 133 | — | 399 | ||||||||||||||||||
Total current liabilities | — | — | 1,682 | 937 | (1,081 | ) | 1,538 | |||||||||||||||||
Long-term debt | — | — | 6,375 | — | — | 6,375 | ||||||||||||||||||
Inter-company note payable | 43 | 117 | — | 117 | (277 | ) | — | |||||||||||||||||
Other liabilities | 1 | — | 262 | 169 | 432 | |||||||||||||||||||
Total liabilities | 44 | 117 | 8,319 | 1,223 | (1,358 | ) | 8,345 | |||||||||||||||||
Total shareholders’ (deficit) equity | (4,526 | ) | (4,642 | ) | (4,642 | ) | 1,505 | 7,779 | (4,526 | ) | ||||||||||||||
Total Liabilities and Shareholders’ (Deficit) Equity | $ | (4,482 | ) | $ | (4,525 | ) | $ | 3,677 | $ | 2,728 | $ | 6,421 | 3,819 | |||||||||||
Schedule of Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Nine Months Ended September 28, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by operating activities | $ | 4 | $ | — | $ | 265 | $ | 127 | $ | (128 | ) | $ | 268 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (34 | ) | (51 | ) | — | (85 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 1 | — | 1 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (25 | ) | (35 | ) | — | (60 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | 1 | — | — | 1 | ||||||||||||||||||
Inter-company loans and capital transactions | (28 | ) | (28 | ) | 10 | (8 | ) | 54 | — | |||||||||||||||
Cash flow used for investing activities | (28 | ) | (28 | ) | (48 | ) | (93 | ) | 54 | (143 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (631 | ) | (1 | ) | — | (632 | ) | |||||||||||||||
Debt issuance proceeds, net of debt issuance costs | — | — | 481 | — | — | 481 | ||||||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 19 | — | — | — | — | 19 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | 6 | 29 | 25 | (134 | ) | 74 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 25 | 29 | (125 | ) | (135 | ) | 74 | (132 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 1 | 1 | 92 | (103 | ) | — | (9 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of period | 2 | — | 56 | 714 | — | 772 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 3 | $ | 1 | $ | 148 | $ | 611 | $ | — | $ | 763 | ||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by (used for) operating activities | $ | 41 | $ | — | $ | (71 | ) | $ | 433 | $ | (200 | ) | $ | 203 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (42 | ) | (65 | ) | — | (107 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 6 | — | 6 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (23 | ) | (27 | ) | — | (50 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||
Inter-company loans and capital transactions | (102 | ) | (105 | ) | 26 | (3 | ) | 184 | — | |||||||||||||||
Cash flow used for investing activities | (102 | ) | (105 | ) | (40 | ) | (89 | ) | 184 | (152 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (3,319 | ) | — | — | (3,319 | ) | ||||||||||||||||
Debt issuance proceeds, net of debt issuance costs | — | — | 3,982 | — | — | 3,982 | ||||||||||||||||||
Restricted cash for bond redemptions | — | — | (758 | ) | (24 | ) | — | (782 | ) | |||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 62 | — | — | — | — | 62 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | — | 105 | 102 | (223 | ) | 16 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 62 | 105 | 7 | (247 | ) | 16 | (57 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 1 | — | (104 | ) | 92 | — | (11 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of period | 1 | — | 104 | 606 | — | 711 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 2 | $ | — | $ | — | $ | 698 | $ | — | $ | 700 | ||||||||||||
Overview_and_Basis_of_Presenta2
Overview and Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | |
Years in business | 50 years |
Other_Financial_Data_Additiona
Other Financial Data - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 20, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | 21-May-13 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Oct. 11, 2013 | Oct. 11, 2013 |
Minimum [Member] | Maximum [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | Senior secured 9.25% notes due 2018 [Member] | Senior Secured 5.00% Notes Due 2021 [Member] | Senior Secured 5.00% Notes Due 2021 [Member] | Senior subordinated 10.125% notes due 2016 [Member] | Senior subordinated 10.125% notes due 2016 [Member] | Senior Unsecured 8.875% Notes Due 2014 [Member] | Senior Unsecured 8.875% Notes Due 2014 [Member] | Third Quarter 2013 Refinancing Transaction [Member] | Third Quarter 2013 Refinancing Transaction [Member] | Third Quarter 2013 Refinancing Transaction [Member] | ||||||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||
Senior Secured 10.125% Notes Due 2018 [Member] | Senior secured 9.25% notes due 2018 [Member] | ||||||||||||||||||||||||||||||
Other Financial Data [Line Items] | |||||||||||||||||||||||||||||||
Licenses Revenue | $55 | $52 | $162 | $152 | |||||||||||||||||||||||||||
Deferred revenue recognized | 25 | 39 | 124 | 97 | |||||||||||||||||||||||||||
License supply agreement period | 6 years | 8 years | |||||||||||||||||||||||||||||
Total Consideration to be received from patent license agreements | 304 | 304 | |||||||||||||||||||||||||||||
Proceeds from License Fees Received | 63 | 198 | |||||||||||||||||||||||||||||
Future Cash for IP Agreement | 43 | 43 | |||||||||||||||||||||||||||||
Future Cash for IP Agreement, Reception Term | 6 years | ||||||||||||||||||||||||||||||
Future Cash for IP Agreement, next 12 months | 20 | ||||||||||||||||||||||||||||||
Deferred revenue related to intellectual property and other agreements | 29 | 29 | 103 | ||||||||||||||||||||||||||||
Repayments of Long-term Debt | 500 | 98 | 100 | 221 | 496 | ||||||||||||||||||||||||||
Loss on extinguishment or modification of long-term debt | -1 | -3 | -82 | -31 | -60 | ||||||||||||||||||||||||||
Interest rate of debt instrument (percent) | 10.13% | 9.25% | 5.00% | 5.00% | 10.13% | 8.88% | |||||||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | 21 | 8 | |||||||||||||||||||||||||||||
Redemption Premium | 52 | 21 | |||||||||||||||||||||||||||||
Write off of Original Issue Discount | 2 | ||||||||||||||||||||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 7 | 2 | |||||||||||||||||||||||||||||
Cash paid for interest | 103 | 126 | 352 | 391 | 12 | 1 | |||||||||||||||||||||||||
Other, net | 0 | 9 | -1 | 21 | |||||||||||||||||||||||||||
Common shares excluded from computation of earnings per share | 14 | 19 | 15 | 14 | 10 | 10 | 10 | 10 | 4 | 5 | 4 | 4 | 0 | 4 | 1 | 1 | |||||||||||||||
Reserves for inventory | 60 | 60 | 58 | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 45 | 44 | 136 | 134 | |||||||||||||||||||||||||||
Accumulated depreciation and amortization | $2,759 | $2,759 | $2,687 |
Components_of_Other_Expenses_N
Components of Other Expenses, Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Nonoperating Income (Expense) [Abstract] | ||||
Interest expense | ($120) | ($127) | ($368) | ($390) |
Interest income | 2 | 2 | 4 | 7 |
Interest expense, net | -118 | -125 | -364 | -383 |
Other, net | 0 | -9 | 1 | -21 |
Other expense, net | ($118) | ($134) | ($363) | ($404) |
Schedule_of_Reconciliation_of_
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Net Loss Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net earnings (loss) | $23 | ($24) | ($90) | ($67) | ||||
Denominator: | ||||||||
Weighted average common shares outstanding (in shares) | 258 | [1] | 249 | [1] | 255 | [1] | 248 | [1] |
Add: Incremental shares for dilutive effect of warrants | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Adjusted weighted average common shares oustanding | 261 | 251 | 257 | 251 | ||||
Basic net loss per share (in usd per share) | $0.09 | ($0.10) | ($0.35) | ($0.27) | ||||
Diluted net loss per share (in usd per share) | $0.09 | ($0.10) | [3] | ($0.35) | [3] | ($0.27) | [3] | |
Stock Options [Member] | ||||||||
Denominator: | ||||||||
Add: Incremental shares for dilutive effect of stock options | 2 | [4] | 2 | [4] | 2 | [4] | 2 | [4] |
Restricted Stock Units (RSUs) [Member] | ||||||||
Denominator: | ||||||||
Add: Incremental shares for dilutive effect of stock options | 1 | [5] | 0 | [5] | 0 | [5] | 1 | [5] |
[1] | Weighted average common shares outstanding includes outstanding common shares of the Company and unissued common shares underlying vested RSUs. | |||||||
[2] | A warrant to purchase an aggregate of 10 million common shares at $36.12 per share was outstanding during all periods presented, but was not included in the computation of diluted EPS because the warrant’s exercise price was greater than the average estimated fair value of the common shares. | |||||||
[3] | No dilutive securities have been included in the diluted net loss per share calculation in periods where a net loss was incurred. | |||||||
[4] | Stock options to purchase an aggregate of 4 million common shares that were outstanding during both the third quarter and first nine months of 2013 and 5 million and 4 million common shares that were outstanding during the third quarter and first nine months of 2012, respectively, were anti-dilutive and were not included in the computation of diluted EPS because the exercise price was greater than the average estimated fair value of the common shares or the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense, potential windfall tax benefits and exercise prices was greater than the weighted average number of shares underlying outstanding stock options. | |||||||
[5] | Unvested RSUs of 1 million for the first nine months of 2013 and 4 million and less than 1 million for the third quarter and first nine months of 2012, respectively, were anti-dilutive and were not included in the computation of diluted EPS because the number of shares assumed to be repurchased using the proceeds of unrecognized compensation expense and potential windfall tax benefits was greater than the weighted average number of outstanding unvested RSUs. There were no anti-dilutive unvested RSUs for the third quarter of 2013. |
Schedule_of_Reconciliation_of_1
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Net Loss Per Common Share (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of earnings per share | 14 | 19 | 15 | 14 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of earnings per share | 10 | 10 | 10 | 10 |
Exercise price of warrants (usd per share) | 36.12 | 36.12 | 36.12 | 36.12 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of earnings per share | 4 | 5 | 4 | 4 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of earnings per share | 0 | 4 | 1 | 1 |
Schedule_of_Inventory_Detail
Schedule of Inventory (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Inventory, Work in Process and Raw Materials, Net of Reserves | $526 | $578 |
Finished goods | 202 | 219 |
Inventory, net | $728 | $797 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Earnings (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Unrealized Gain (Loss) on Derivatives, Beginning Balance | $2 | |||
Unrealized Gain (Loss) on Derivatives, Current period net change | -3 | |||
Unrealized Gain (Loss) on Derivatives, Ending Balance | -1 | -1 | ||
Unrealized Gain on Postretirement Obligation, Beginning Balance | -13 | |||
Unrealized Gain on Postretirement Obligation, Current period net change | 4 | |||
Unrealized Gain on Postretirement Obligation, Ending Balance | -9 | -9 | ||
Foreign Currency Translation, Beginning Balance | 25 | |||
Foreign Currency Translation, Current period net change | 0 | 1 | -4 | 0 |
Foreign Currency Translation, Ending Balance | 21 | 21 | ||
Accumulated other comprehensive earnings, Beginning Balance | 14 | |||
Other comprehensive earnings (loss) | 5 | 7 | -3 | 9 |
Accumulated other comprehensive earnings, Ending Balance | $11 | $11 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | $493 | $480 | ||
Liabilities Fair Value | 9 | 18 | ||
Money Market Mutual Funds [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 177 | [1] | 192 | [1] |
Time Deposits [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 311 | [1] | 285 | [1] |
Foreign Exchange Contract [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 4 | [2] | 3 | [2] |
Liabilities Fair Value | 2 | [2] | 1 | [2] |
Commodity Derivative Contracts [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Liabilities Fair Value | 1 | [3] | 1 | [3] |
Interest Rate Swap Agreements [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 1 | [4] | ||
Liabilities Fair Value | 6 | [4] | 17 | [4] |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 488 | 477 | ||
Liabilities Fair Value | 0 | 0 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Money Market Mutual Funds [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 177 | [1] | 192 | [1] |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Time Deposits [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 311 | [1] | 285 | [1] |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Foreign Exchange Contract [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 0 | [2] | 0 | [2] |
Liabilities Fair Value | 0 | [2] | 0 | [2] |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commodity Derivative Contracts [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Liabilities Fair Value | 0 | [3] | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Interest Rate Swap Agreements [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 0 | [4] | ||
Liabilities Fair Value | 0 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 5 | 3 | ||
Liabilities Fair Value | 9 | 18 | ||
Significant Other Observable Inputs (Level 2) | Money Market Mutual Funds [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs (Level 2) | Time Deposits [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs (Level 2) | Foreign Exchange Contract [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 4 | [2] | 3 | [2] |
Liabilities Fair Value | 2 | [2] | 1 | [2] |
Significant Other Observable Inputs (Level 2) | Commodity Derivative Contracts [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Liabilities Fair Value | 1 | [3] | ||
Significant Other Observable Inputs (Level 2) | Interest Rate Swap Agreements [Member] | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ||||
Asset Fair Value | 1 | [4] | ||
Liabilities Fair Value | $6 | [4] | $17 | [4] |
[1] | Money market funds and time deposits are reported as cash and cash equivalents. | |||
[2] | Foreign currency derivative contracts are reported as other current assets or accrued liabilities and other. | |||
[3] | Commodity derivative contracts are reported as accrued liabilities and other. The fair value at December 31, 2012 was less than $1 million. | |||
[4] | Interest rate swap arrangements are reported as current assets, accrued liabilities and other or other liabilities. |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities Fair Value | $9 | $18 | ||
Fair value of long term debt | 6,580 | 6,562 | ||
Long-term Debt, Current Maturities | 753 | 5 | ||
Commodity Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities Fair Value | $1 | [1] | $1 | [1] |
[1] | Commodity derivative contracts are reported as accrued liabilities and other. The fair value at December 31, 2012 was less than $1 million. |
Carrying_Value_of_Longterm_Deb
Carrying Value of Long-term Debt (Detail) (USD $) | Sep. 27, 2013 | 21-May-13 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $7,128 | $6,380 | |||
Less: current maturities | -753 | -5 | |||
Total long-term debt | 6,375 | 6,375 | |||
Extended Maturity Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 2,215 | |||
2012 Term Loan due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 491 | |||
2016 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 348 | 0 | |||
Basis spread variable rate of interest per annum (percent) | 3.75% | ||||
2020 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 2,354 | 0 | |||
Basis spread variable rate of interest per annum (percent) | 3.75% | ||||
2021 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 792 | 0 | |||
Interest rate of debt instrument (percent) | 5.00% | ||||
Basis spread variable rate of interest per annum (percent) | 3.75% | ||||
Replacement Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 0 | |||
Senior Secured 10.125% Notes Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 221 | 663 | |||
Interest rate of debt instrument (percent) | 10.13% | ||||
Senior secured 9.25% notes due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 1,380 | 1,380 | |||
Interest rate of debt instrument (percent) | 9.25% | ||||
Senior Secured 5.00% Notes Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 500 | 0 | |||
Interest rate of debt instrument (percent) | 5.00% | 5.00% | |||
Senior unsecured floating rate notes due 2014 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 57 | [1] | 57 | [1] | |
Variable rate (percent) | 0.25% | ||||
Basis spread variable rate of interest per annum (percent) | 3.88% | ||||
Senior Unsecured 8.875% Notes Due 2014 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 98 | |||
Interest rate of debt instrument (percent) | 8.88% | ||||
Senior unsecured 10.75% notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 473 | 473 | |||
Interest rate of debt instrument (percent) | 10.75% | ||||
Senior unsecured 8.05% notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 739 | 739 | |||
Interest rate of debt instrument (percent) | 8.05% | ||||
Senior subordinated 10.125% notes due 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $264 | $264 | |||
Interest rate of debt instrument (percent) | 10.13% | ||||
[1] | The senior unsecured floating rate notes due 2014 bear interest at a rate, reset quarterly, equal to three month LIBOR (0.25% in effect on September 27, 2013) plus 3.875% per annum. |
Debt_Additional_Information_De
Debt Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Sep. 27, 2013 | 21-May-13 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 20, 2013 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Mar. 01, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Mar. 01, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 11, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Mar. 01, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Jun. 20, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 20, 2013 | Sep. 27, 2013 | Jun. 20, 2013 | Sep. 27, 2013 | Mar. 01, 2013 | Sep. 27, 2013 | Oct. 11, 2013 | Oct. 11, 2013 | Oct. 11, 2013 | |
Senior Secured 5.00% Notes Due 2021 [Member] | Senior Secured 5.00% Notes Due 2021 [Member] | Senior Secured 5.00% Notes Due 2021 [Member] | Redemption resulting from change of control [Member] | Redemption after May 15, 2016 [Member] | Redemption prior to May 15, 2016 [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | 2016 Term Loan [Member] | 2016 Term Loan [Member] | 2016 Term Loan [Member] | 2016 Term Loan [Member] | 2020 Term Loan [Member] | 2020 Term Loan [Member] | 2020 Term Loan [Member] | 2020 Term Loan [Member] | 2021 Term Loan [Member] | 2021 Term Loan [Member] | 2021 Term Loan [Member] | 2012 Term Loan due 2019 [Member] | 2012 Term Loan due 2019 [Member] | 2012 Term Loan due 2019 [Member] | 2016 Term Loan and 2020 Term Loan [Member] | First Quarter 2013 Refinancing Transaction [Member] | Replacement Revolver [Member] | Replacement Revolver [Member] | Senior secured 9.25% notes due 2018 [Member] | Senior secured 9.25% notes due 2018 [Member] | Senior Unsecured 8.875% Notes Due 2014 [Member] | Senior Unsecured 8.875% Notes Due 2014 [Member] | Senior Unsecured 8.875% Notes Due 2014 [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | Extended Maturity Term Loan [Member] | 2012 Term Loan due 2019 [Member] | Third Quarter 2013 Refinancing Transaction [Member] | Third Quarter 2013 Refinancing Transaction [Member] | Second Quarter 2013 Refinancing Transaction [Member] | Second Quarter 2013 Refinancing Transaction [Member] | Second Quarter 2013 Refinancing Transaction [Member] | First Quarter 2013 Refinancing Transaction [Member] | First Quarter 2013 Refinancing Transaction [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
2016 Term Loan [Member] | Senior Secured 5.00% Notes Due 2021 [Member] | 2016 Term Loan and 2020 Term Loan [Member] | Third Quarter 2013 Refinancing Transaction [Member] | Third Quarter 2013 Refinancing Transaction [Member] | Third Quarter 2013 Refinancing Transaction [Member] | Third Quarter 2013 Refinancing Transaction [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Senior Secured 10.125% Notes Due 2018 [Member] | Senior secured 9.25% notes due 2018 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $7,128,000,000 | $7,128,000,000 | $6,380,000,000 | $500,000,000 | $0 | $221,000,000 | $663,000,000 | $348,000,000 | $348,000,000 | $0 | $2,354,000,000 | $2,354,000,000 | $0 | $792,000,000 | $0 | $0 | $491,000,000 | $0 | $0 | $1,380,000,000 | $1,380,000,000 | $0 | $98,000,000 | ||||||||||||||||||||||||||||
Cash paid for interest | 103,000,000 | 126,000,000 | 352,000,000 | 391,000,000 | 12,000,000 | 10,000,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment or modification of long-term debt | 1,000,000 | 3,000,000 | 82,000,000 | 31,000,000 | 22,000,000 | 59,000,000 | 60,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Call Premium Redemption Price | 1.01 | 1 | 1 | 1.01 | 1.01 | 1.01 | |||||||||||||||||||||||||||||||||||||||||||||
Portion of Notes Available for Redemption | 0.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | 500,000,000 | 350,000,000 | 2,379,000,000 | 2,379,000,000 | 2,390,000,000 | 800,000,000 | 800,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Amount issued percentage of par (percent) | 99.00% | 99.00% | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount on issuance percentage (percent) | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of debt instrument (percent) | 5.00% | 5.00% | 10.13% | 5.00% | 9.25% | 8.88% | |||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 98,000,000 | 100,000,000 | 442,000,000 | 2,200,000,000 | 496,000,000 | 221,000,000 | 496,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Restricted cash for bond redemptions | 782,000,000 | 782,000,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance cost | 7,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Early repayment of senior debt | 53,000,000 | 65,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized debt issuance expense | 3,000,000 | 23,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt, Weighted Average Interest Rate | 0.005 | 0.005 | |||||||||||||||||||||||||||||||||||||||||||||||||
Basis spread variable rate of interest per annum (percent) | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 0.50% | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of debt instrument floor rate in relation to variable spread rate (percent) | 1.00% | 1.25% | 1.25% | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate at period end (percent) | 4.75% | 4.75% | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value of long term debt | 6,580,000,000 | 6,580,000,000 | 6,562,000,000 | 350,000,000 | 2,360,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Original issuance discount | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 425,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining borrowing capacity | 400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of letters of credit outstanding | 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate terms | the federal funds rate, plus one-half of 1% | the federal funds rate, plus one-half of 1% | |||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of outstanding balance required for quarterly payments (percent) | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Leverage ratio early maturity trigger | greater than 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Springing maturity principal trigger | 500,000,000 | 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized discount | 25,000,000 | 25,000,000 | 8,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Required total leverage ratio | 6.5 | 6.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Required senior secured first lien leverage ratio | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Required fixed charge coverage ratio | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Required secured debt ratio | 3.25 | 3.25 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total leverage ratio | 6.9 | 6.9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior secured first lien leverage ratio | 5.01 | 5.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed charge coverage ratio | 1.97 | 1.97 | |||||||||||||||||||||||||||||||||||||||||||||||||
Secured debt ratio | 6.8 | 6.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of principal in current year | 726,000,000 | 726,000,000 | 717,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of principal in next rolling twelve months | 93,000,000 | 93,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of principal in year two | 35,000,000 | 35,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of principal in year three | 637,000,000 | 637,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of principal in year four | 32,000,000 | 32,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of principal in year five | 916,000,000 | 916,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of principal after year five | $4,722,000,000 | $4,722,000,000 |
Risk_Management_Additional_Inf
Risk Management - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency exchange contracts not designated as hedging instruments | $129 | $129 | $217 | ||
Foreign currency derivative instruments not designated as hedging instruments at fair value, net | 1 | 1 | -1 | ||
Fair value of cash flow hedging instruments | 1 | 1 | 2 | ||
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 1 | -1 | 2 | 1 | |
Other Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gains (losses) on foreign exchange currency contracts not designated as hedging instruments | 1 | 5 | -3 | -1 | |
Euro Member Countries, Euro | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency exchange contracts not designated as hedging instruments | 36 | 36 | 104 | ||
Euro Member Countries, Euro | Sales Revenue, Goods, Net [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency cash flow hedge derivatives | -42 | -42 | 0 | ||
Japan, Yen | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency exchange contracts not designated as hedging instruments | 34 | 34 | 28 | ||
Japan, Yen | Cost of Sales [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency cash flow hedge derivatives | 34 | 34 | 0 | ||
China, Yuan Renminbi | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency exchange contracts not designated as hedging instruments | 20 | 20 | 23 | ||
China, Yuan Renminbi | Cost of Sales [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency cash flow hedge derivatives | 98 | 98 | 53 | ||
China, Yuan Renminbi | Research and Development Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency cash flow hedge derivatives | 24 | 11 | 24 | 11 | |
China, Yuan Renminbi | Selling, General and Administrative Expenses [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency cash flow hedge derivatives | 24 | 13 | 24 | 13 | |
Malaysia, Ringgits | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency exchange contracts not designated as hedging instruments | 16 | 16 | 26 | ||
Malaysia, Ringgits | Cost of Sales [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency cash flow hedge derivatives | 107 | 107 | 68 | ||
India, Rupees | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of foreign currency exchange contracts not designated as hedging instruments | -6 | -6 | -3 | ||
Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Term of foreign currency derivative | 18 months | ||||
Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Price risk derivatives, at fair value, net | -1 | ||||
Cash Flow Hedge Gain (Loss) Reclassified to Cost of Sales, Net | 2 | -1 | -3 | ||
Commodity Contract [Member] | Other Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on cash flow hedge ineffectiveness, net | -1 | -1 | |||
Commodity Contract [Member] | Cost of Sales [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash Flow Hedge Gain (Loss) Reclassified to Cost of Sales, Net | 2 | ||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Term of foreign currency derivative | 15 months | ||||
Outstanding notional mass of commodity contracts | 30,000 | 30,000 | 17,000 | ||
Price risk derivatives, at fair value, net | -1 | -1 | |||
Interest Rate Swap Agreements [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Obligations under current and previous interest rate derivatives | 15 | 15 | |||
Payments for current and previous interest rate arranagements | 1 | ||||
Interest Rate Swap Agreements [Member] | Other Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss) on interest rate derivative instruments not designated as hedging instruments | ($7) | $1 | ($17) |
Share_and_Equitybased_Compensa2
Share and Equity-based Compensation Share and Equity-based Compensation Additional Information (Details) (USD $) | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Jul. 02, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Apr. 02, 2013 | Sep. 27, 2013 | Apr. 02, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
Employee Stock [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | 2006 MIP [Member] | 2007 EIP [Member] | 2006 MIP and 2007 EIP [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | Annual Grant [Member] | ||||
Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Based Restricted Share Units [Member] | Performance Based Restricted Share Units [Member] | Performance Based Restricted Share Units [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | ||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Stock Options and Restricted Stock Units RSU's [Member] | Stock Options and Restricted Stock Units RSU's [Member] | Executive Market-Based RSU [Member] | Executive Market-Based RSU [Member] | Executive Market-Based RSU [Member] | Executive Market-Based RSU [Member] | Stock Options [Member] | |||||||||||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||
Grants in period (shares) | 1,900,000 | ||||||||||||||||||||||||||||||
Equity instruments other than options, grants in period (shares) | 4,640,000 | 3,500,000 | 1,000,000 | ||||||||||||||||||||||||||||
Rate at which share-based awards vest each year (percent) | 25.00% | 33.00% | 33.00% | 25.00% | 25.00% | 25.00% | |||||||||||||||||||||||||
Grants in period, weighted average grant date fair value (usd per share) | $7.03 | $7.10 | $6.90 | ||||||||||||||||||||||||||||
Options, grants in period, weighted average exercise price (usd per share) | $14.03 | $13.91 | |||||||||||||||||||||||||||||
Share-based Compensation Award Total Cost | $47 | $13 | |||||||||||||||||||||||||||||
Total compensation cost not yet recognized, period for recognition | 3 years | 4 years | 3 years | 4 years | 4 years | 4 years | 3 years | ||||||||||||||||||||||||
Percentage of units that will vest (percent) | 0.00% | 150.00% | 0.00% | 100.00% | 0.00% | 150.00% | |||||||||||||||||||||||||
Grants in period, weighted average grant date fair value (usd per share) | $17.01 | ||||||||||||||||||||||||||||||
Non-qualified stock options exercised (shares) | 5,970,000 | 4,606,000 | |||||||||||||||||||||||||||||
Exercisable options, weighted average exercise price (usd per share) | $8.74 | $17.30 | |||||||||||||||||||||||||||||
Total compensation cost not yet recognized, stock options (shares) | 28 | 1 | |||||||||||||||||||||||||||||
Total compensation cost not yet recognized, share-based awards other than options | 81 | ||||||||||||||||||||||||||||||
Equity instruments other than options, nonvested, intrinsic value | $19,000,000 | ||||||||||||||||||||||||||||||
Options, exercises in period (shares) | 238,000 | 408,000 | 47,000 | ||||||||||||||||||||||||||||
Options, exercises in period, weighted average exercise price (usd per share) | $14.48 | $6.44 | $6.72 | ||||||||||||||||||||||||||||
Capital shares reserved for Future Issuance (shares) | 2,400,000 | ||||||||||||||||||||||||||||||
Maximum employee subscription rate (percent) | 15.00% | ||||||||||||||||||||||||||||||
Purchase price as percent of fair market value (percent) | 85.00% | ||||||||||||||||||||||||||||||
Employee stock purchase plans (shares) | 1,000,000 | ||||||||||||||||||||||||||||||
Weighted average purchase price of shares purchased (usd per share) | $11.52 | ||||||||||||||||||||||||||||||
Compensation expense | $3 | $3 | |||||||||||||||||||||||||||||
Discount from market price, purchase date (percent) | 15.00% |
Share_and_Equitybased_Compensa3
Share and Equity-based Compensation 2011 Options Valuation Assumptions (Details) (USD $) | 9 Months Ended | |
Sep. 27, 2013 | Sep. 28, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Grants in period, weighted average grant date fair value (usd per share) | $7.03 | $7.10 |
Expected volatility (percent) | 60.73% | 62.27% |
Expected lives (in years) | 4 years 9 months | 5 years 0 months 29 days |
Risk free interest rate (percent) | 0.75% | 0.94% |
Expected dividend yield (percent) | 0.00% | 0.00% |
Share_and_Equitybased_Compensa4
Share and Equity-based Compensation Summary of Changes in 2011 Options Outstanding (Details) (Omnibus Incentive Plan [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 27, 2013 | Dec. 31, 2012 |
Omnibus Incentive Plan [Member] | ||
Options, Outstanding [Roll Forward] | ||
Options, outstanding, number (shares) | 4,606 | |
Granted (shares) | 2,187 | |
Terminated, cancelled or expired (shares) | -585 | |
Exercised (shares) | -238 | |
Options, outstanding, number (shares) | 5,970 | 4,606 |
Exercisable (shares) | 789 | |
Weighted Average Exercise Price Per Share Outstanding [Roll Forward] | ||
Outstanding, weighted average exercise price (usd per share) | $12.93 | |
Granted, weighted average exercise price (usd per share) | $14.03 | |
Terminated, cancelled or expired, weighted average exercise price (usd per share) | $14.92 | |
Options, exercises in period, weighted average exercise price (usd per share) | $14.48 | |
Outstanding, weighted average exercise price (usd per share) | $13.08 | $12.93 |
Exercisable, weighted average exercise price (usd per share) | $12.83 | |
Options, Additional Disclosures [Abstract] | ||
Beginning balance of outstanding options, weighted average remaining contractual term | 6 years | 6 years |
Ending balance of outstanding options, weighted average remaining contractual term | 6 years | 6 years |
Options exercisable, weighted average remaining contractual term | 6 years | |
Beginning balance, Options outstanding, intrinsic value | $2 | |
Ending balance, Options outstanding, intrinsic value | 20 | 2 |
Options exercisable, intrinsic value | $3 |
Share_and_Equitybased_Compensa5
Share and Equity-based Compensation Summary of Changes in 2011 RSUs and PRSUs Outstanding (Details) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2013 |
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested RSU and PRSU, beginning balance (shares) | 4,520 |
Granted (shares) | 4,640 |
Issued (shares) | -801 |
Terminated, cancelled or expired (shares) | -642 |
Non-vested RSU and PRSU, ending balance (shares) | 7,717 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Income Tax Disclosure [Abstract] | ||||
Statutory income tax rate | 0.00% | |||
Income tax expense | $15 | $14 | $31 | $39 |
Tax Adjustments, Settlements, and Unusual Provisions | 5 | 5 | 4 | 11 |
Unrecognized Tax Benefits, Period Increase (Decrease) | ($44) |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Commitments and Contingencies Disclosure [Abstract] | |
Rolling forecasts period | 18 months |
Product purchase commitments | $113 |
Reorganization_of_Business_and2
Reorganization of Business and Other - Additional Information (Detail) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Person | Person | Person | Person | |
Reorganization [Line Items] | ||||
CEO transition fees | $13 | |||
Fabrication facility wafer size (millimeters) | 150 | |||
Accrual for indemnification obligations gross | 18 | |||
Gain (Loss) on Contract Termination | 6 | |||
Reorganization Of Business Program [Member] | ||||
Reorganization [Line Items] | ||||
Cash payments for exit and other costs | -52 | -21 | ||
Restructuring reserve balance | 28 | 92 | 81 | 128 |
Expected number of positions to be eliminated (positions) | 80 | 550 | 520 | 720 |
Restructuring accrual (reverse) adjustment and other | -1 | -15 | ||
2012 Strategic Realignment Plan [Member] | ||||
Reorganization [Line Items] | ||||
Cash payments for exit and other costs | -20 | |||
Restructuring reserve balance | 10 | 30 | ||
Expected number of positions to be eliminated (positions) | 100 | 270 | ||
CEO transition fees | 1 | |||
Toulouse, France Fabrication Facility [Member] | ||||
Reorganization [Line Items] | ||||
Business exit costs | 5 | 13 | ||
Proceeds from sale of property, plant and equipment and assets held for sale | 13 | |||
Fabrication Facility In Sendai [Member] | ||||
Reorganization [Line Items] | ||||
Cash payments for exit and other costs | -3 | |||
Business exit costs | 4 | |||
Insurance recoveries (for property and inventory damage and related business interruption) | 55 | |||
Exit And Other Costs [Member] | Reorganization Of Business Program [Member] | ||||
Reorganization [Line Items] | ||||
Cash payments for exit and other costs | -2 | |||
Restructuring reserve balance | 6 | 6 | ||
Business exit costs | 2 | |||
Restructuring accrual (reverse) adjustment and other | 0 | |||
Exit And Other Costs [Member] | 2012 Strategic Realignment Plan [Member] | ||||
Reorganization [Line Items] | ||||
Cash payments for exit and other costs | -17 | |||
Restructuring reserve balance | 2 | 2 | ||
Business exit costs | 19 | |||
Restructuring accrual (reverse) adjustment and other | -2 | |||
Euro Member Countries, Euro | Reorganization Of Business Program [Member] | ||||
Reorganization [Line Items] | ||||
Restructuring accrual (reverse) adjustment and other | ($1) |
Schedule_of_Employee_Terminati
Schedule of Employee Termination Benefits and Exit Cost Accruals (Detail) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Person | Person | Person | Person | |
2012 Strategic Realignment Plan [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | $30 | |||
Expected number of positions to be eliminated (positions) | 100 | 270 | ||
Number of positions eliminated | 170 | |||
Employee separation cost reserve usage | -20 | |||
Employee Separation Costs Reserve | 10 | |||
2012 Strategic Realignment Plan [Member] | Cost of Sales [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 6 | |||
Employee separation cost reserve usage | -3 | |||
Employee Separation Costs Reserve | 3 | |||
2012 Strategic Realignment Plan [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 11 | |||
Employee separation cost reserve usage | -7 | |||
Employee Separation Costs Reserve | 4 | |||
2012 Strategic Realignment Plan [Member] | Research and Development Expense [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 13 | |||
Employee separation cost reserve usage | -10 | |||
Employee Separation Costs Reserve | 3 | |||
2012 Strategic Realignment Plan [Member] | Exit And Other Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 2 | |||
Reserve associated with restructuring charge | 19 | |||
Restructuring accrual (reverse) adjustment and other | -2 | |||
Employee separation cost reserve usage | -17 | |||
Employee Separation Costs Reserve | 2 | |||
Reorganization Of Business Program [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 81 | 128 | ||
Expected number of positions to be eliminated (positions) | 80 | 550 | 520 | 720 |
Number of positions eliminated | 440 | 170 | ||
Restructuring accrual (reverse) adjustment and other | -1 | -15 | ||
Employee separation cost reserve usage | -52 | -21 | ||
Employee Separation Costs Reserve | 28 | 92 | ||
Reorganization Of Business Program [Member] | Cost of Sales [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 77 | 106 | ||
Restructuring accrual (reverse) adjustment and other | 3 | |||
Employee separation cost reserve usage | -52 | -21 | ||
Employee Separation Costs Reserve | 24 | 88 | ||
Reorganization Of Business Program [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 8 | 2 | ||
Restructuring accrual (reverse) adjustment and other | -6 | |||
Employee Separation Costs Reserve | 2 | 2 | 2 | |
Reorganization Of Business Program [Member] | Research and Development Expense [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 14 | 2 | ||
Restructuring accrual (reverse) adjustment and other | -12 | |||
Employee Separation Costs Reserve | 2 | 2 | 2 | |
Reorganization Of Business Program [Member] | Exit And Other Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Employee Separation Costs Reserve | 6 | |||
Reserve associated with restructuring charge | 2 | |||
Restructuring accrual (reverse) adjustment and other | 0 | |||
Employee separation cost reserve usage | -2 | |||
Employee Separation Costs Reserve | 6 | |||
Reorganization Of Business Program [Member] | Euro Member Countries, Euro | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring accrual (reverse) adjustment and other | -1 | |||
Fabrication Facility In Sendai [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve associated with restructuring charge | 4 | |||
Employee separation cost reserve usage | ($3) |
Supplemental_Guarantor_Condens2
Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Detail) (USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Disclosure Supplemental Guarantor Condensed Consolidating Financial Statements Additional Information [Abstract] | |
Aggregate principal amount of senior notes | $3,634 |
Schedule_of_Supplemental_Conde
Schedule of Supplemental Condensed Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Net sales | $1,085 | $1,009 | $3,104 | $2,988 |
Cost of sales | 612 | 585 | 1,792 | 1,722 |
Gross margin | 473 | 424 | 1,312 | 1,266 |
Selling, general and administrative | 120 | 110 | 346 | 328 |
Research and development | 191 | 187 | 560 | 556 |
Amortization expense for acquired intangible assets | 3 | 3 | 10 | 10 |
Reorganization of business and other | 2 | -3 | 10 | -35 |
Operating (loss) earnings | 157 | 127 | 386 | 407 |
Loss on extinguishment or modification of long-term debt | -1 | -3 | -82 | -31 |
Other income (expense), net | -118 | -134 | -363 | -404 |
Earnings (loss) before income taxes | 38 | -10 | -59 | -28 |
Income tax expense | 15 | 14 | 31 | 39 |
Net earnings (loss) | 23 | -24 | -90 | -67 |
Freescale Ltd.[Member] | ||||
Selling, general and administrative | 2 | 2 | 5 | 5 |
Operating (loss) earnings | -2 | -2 | -5 | -5 |
Other income (expense), net | 75 | -22 | 115 | 66 |
Earnings (loss) before income taxes | 73 | -24 | 110 | 61 |
Net earnings (loss) | 73 | -24 | 110 | 61 |
Guarantor [Member] | ||||
Other income (expense), net | 75 | -22 | 115 | 67 |
Earnings (loss) before income taxes | 75 | -22 | 115 | 67 |
Net earnings (loss) | 75 | -22 | 115 | 67 |
Subsidiary Issuer [Member] | ||||
Net sales | 1,446 | 1,297 | 3,966 | 3,950 |
Cost of sales | 984 | 909 | 2,866 | 2,922 |
Gross margin | 462 | 388 | 1,100 | 1,028 |
Selling, general and administrative | 163 | 160 | 473 | 450 |
Research and development | 125 | 118 | 360 | 352 |
Amortization expense for acquired intangible assets | 3 | 3 | 10 | 10 |
Reorganization of business and other | 2 | -15 | 5 | -33 |
Operating (loss) earnings | 169 | 122 | 252 | 249 |
Loss on extinguishment or modification of long-term debt | -1 | -3 | -82 | -31 |
Other income (expense), net | -90 | -141 | -52 | -160 |
Earnings (loss) before income taxes | 78 | -22 | 118 | 58 |
Income tax expense | 3 | 0 | 3 | -9 |
Net earnings (loss) | 75 | -22 | 115 | 67 |
Non-Guarantors [Member] | ||||
Net sales | 1,420 | 1,333 | 4,028 | 4,068 |
Cost of sales | 1,409 | 1,297 | 3,816 | 3,830 |
Gross margin | 11 | 36 | 212 | 238 |
Selling, general and administrative | 50 | 47 | 141 | 141 |
Research and development | 66 | 69 | 200 | 204 |
Reorganization of business and other | 0 | 12 | 5 | -2 |
Operating (loss) earnings | -105 | -92 | -134 | -105 |
Other income (expense), net | 96 | 97 | 279 | 272 |
Earnings (loss) before income taxes | -9 | 5 | 145 | 167 |
Income tax expense | 12 | 14 | 28 | 48 |
Net earnings (loss) | -21 | -9 | 117 | 119 |
Eliminations [Member] | ||||
Net sales | -1,781 | -1,621 | -4,890 | -5,030 |
Cost of sales | -1,781 | -1,621 | -4,890 | -5,030 |
Selling, general and administrative | -95 | -99 | -273 | -268 |
Operating (loss) earnings | 95 | 99 | 273 | 268 |
Other income (expense), net | -274 | -46 | -820 | -649 |
Earnings (loss) before income taxes | -179 | 53 | -547 | -381 |
Net earnings (loss) | ($179) | $53 | ($547) | ($381) |
Schedule_of_Supplemental_Conde1
Schedule of Supplemental Condensed Consolidating Statements of Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Net earnings (loss) | $23 | ($24) | ($90) | ($67) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments | 0 | 1 | -4 | 0 |
Derivative instruments adjustments: | ||||
Unrealized losses arising during the period | 3 | 6 | -3 | 7 |
Reclassification adjustment for items included in net earnings (loss) | 1 | 1 | 0 | 2 |
Post-retirement adjustments: | ||||
(Losses) gains arising during the period | 0 | -1 | 2 | 0 |
Amortization of actuarial gains included in net earnings (loss) | 1 | 0 | 2 | 0 |
Other comprehensive earnings (loss) | 5 | 7 | -3 | 9 |
Comprehensive earnings (loss) | 28 | -17 | -93 | -58 |
Freescale Ltd.[Member] | ||||
Net earnings (loss) | 73 | -24 | 110 | 61 |
Post-retirement adjustments: | ||||
Comprehensive earnings (loss) | 73 | -24 | 110 | 61 |
Guarantor [Member] | ||||
Net earnings (loss) | 75 | -22 | 115 | 67 |
Post-retirement adjustments: | ||||
Comprehensive earnings (loss) | 75 | -22 | 115 | 67 |
Non-Guarantors [Member] | ||||
Net earnings (loss) | -21 | -9 | 117 | 119 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments | 0 | 1 | -4 | 0 |
Post-retirement adjustments: | ||||
(Losses) gains arising during the period | 0 | -1 | 2 | 0 |
Amortization of actuarial gains included in net earnings (loss) | 1 | 0 | 2 | 0 |
Other comprehensive earnings (loss) | 1 | 0 | 0 | 0 |
Comprehensive earnings (loss) | -20 | -9 | 117 | 119 |
Eliminations [Member] | ||||
Net earnings (loss) | -179 | 53 | -547 | -381 |
Post-retirement adjustments: | ||||
Comprehensive earnings (loss) | -179 | 53 | -547 | -381 |
Subsidiary Issuer [Member] | ||||
Net earnings (loss) | 75 | -22 | 115 | 67 |
Derivative instruments adjustments: | ||||
Unrealized losses arising during the period | 3 | 6 | -3 | 7 |
Reclassification adjustment for items included in net earnings (loss) | 1 | 1 | 0 | 2 |
Post-retirement adjustments: | ||||
Other comprehensive earnings (loss) | 4 | 7 | -3 | 9 |
Comprehensive earnings (loss) | $79 | ($15) | $112 | $76 |
Schedule_of_Supplemental_Conde2
Schedule of Supplemental Condensed Consolidating Balance Sheet (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $700 | $711 | $763 | $772 |
Accounts receivable, net | 426 | 384 | ||
Restricted cash for bond redemptions | 782 | 0 | ||
Inventory, net | 728 | 797 | ||
Other current assets | 141 | 166 | ||
Total current assets | 2,777 | 2,058 | ||
Property, plant and equipment, net | 685 | 715 | ||
Intangible assets, net | 56 | 64 | ||
Other assets, net | 301 | 334 | ||
Total assets | 3,819 | 3,171 | ||
Liabilities and Shareholders' (Deficit) Equity | ||||
Current portion of long-term debt and capital lease obligations | 753 | 6 | ||
Accounts payable | 386 | 323 | ||
Accrued liabilities and other | 399 | 543 | ||
Total current liabilities | 1,538 | 872 | ||
Long-term debt | 6,375 | 6,375 | ||
Other liabilities | 432 | 455 | ||
Total liabilities | 8,345 | 7,702 | ||
Total shareholders' (deficit) equity | -4,526 | -4,531 | ||
Accumulated deficit | -12,854 | -12,764 | ||
Total liabilities and shareholders’ deficit | 3,819 | 3,171 | ||
Freescale Ltd.[Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 2 | 1 | 3 | 2 |
Inter-company receivable | 158 | 213 | ||
Total current assets | 160 | 214 | ||
Investment in affiliates | -4,642 | -4,717 | ||
Total assets | -4,482 | -4,503 | ||
Liabilities and Shareholders' (Deficit) Equity | ||||
Inter-company note payable | 43 | 43 | ||
Other liabilities | 1 | 1 | ||
Total liabilities | 44 | 44 | ||
Total shareholders' (deficit) equity | -4,526 | -4,547 | ||
Total liabilities and shareholders’ deficit | -4,482 | -4,503 | ||
Guarantor [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 1 | 0 | |
Total current assets | 0 | |||
Investment in affiliates | -4,642 | -4,717 | ||
Inter-company note receivable | 117 | 114 | ||
Total assets | -4,525 | -4,603 | ||
Liabilities and Shareholders' (Deficit) Equity | ||||
Inter-company note payable | 117 | 114 | ||
Other liabilities | 0 | |||
Total liabilities | 117 | 114 | ||
Total shareholders' (deficit) equity | -4,642 | -4,717 | ||
Total liabilities and shareholders’ deficit | -4,525 | -4,603 | ||
Subsidiary Issuer [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 104 | 148 | 56 |
Inter-company receivable | 443 | 397 | ||
Accounts receivable, net | 100 | 99 | ||
Restricted cash for bond redemptions | 758 | |||
Inventory, net | 263 | 280 | ||
Other current assets | 78 | 105 | ||
Total current assets | 1,642 | 985 | ||
Property, plant and equipment, net | 323 | 346 | ||
Investment in affiliates | 1,505 | 1,600 | ||
Intangible assets, net | 56 | 64 | ||
Inter-company note receivable | 0 | 0 | ||
Other assets, net | 151 | 166 | ||
Total assets | 3,677 | 3,161 | ||
Liabilities and Shareholders' (Deficit) Equity | ||||
Current portion of long-term debt and capital lease obligations | 753 | 6 | ||
Inter-company payable | 440 | 697 | ||
Accounts payable | 223 | 179 | ||
Accrued liabilities and other | 266 | 337 | ||
Total current liabilities | 1,682 | 1,219 | ||
Long-term debt | 6,375 | 6,375 | ||
Other liabilities | 262 | 284 | ||
Total liabilities | 8,319 | 7,878 | ||
Total shareholders' (deficit) equity | -4,642 | -4,717 | ||
Total liabilities and shareholders’ deficit | 3,677 | 3,161 | ||
Non-Guarantors [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 698 | 606 | 611 | 714 |
Inter-company receivable | 480 | 459 | ||
Accounts receivable, net | 326 | 285 | ||
Restricted cash for bond redemptions | 24 | |||
Inventory, net | 465 | 517 | ||
Other current assets | 63 | 61 | ||
Total current assets | 2,056 | 1,928 | ||
Property, plant and equipment, net | 362 | 369 | ||
Intangible assets, net | 0 | 0 | ||
Inter-company note receivable | 160 | 157 | ||
Other assets, net | 150 | 168 | ||
Total assets | 2,728 | 2,622 | ||
Liabilities and Shareholders' (Deficit) Equity | ||||
Current portion of long-term debt and capital lease obligations | 0 | |||
Inter-company payable | 641 | 372 | ||
Accounts payable | 163 | 144 | ||
Accrued liabilities and other | 133 | 206 | ||
Total current liabilities | 937 | 722 | ||
Inter-company note payable | 117 | 114 | ||
Other liabilities | 169 | 170 | ||
Total liabilities | 1,223 | 1,006 | ||
Total shareholders' (deficit) equity | 1,505 | 1,616 | ||
Total liabilities and shareholders’ deficit | 2,728 | 2,622 | ||
Eliminations [Member] | ||||
ASSETS | ||||
Inter-company receivable | -1,081 | -1,069 | ||
Total current assets | -1,081 | -1,069 | ||
Investment in affiliates | 7,779 | 7,834 | ||
Inter-company note receivable | -277 | -271 | ||
Total assets | 6,421 | 6,494 | ||
Liabilities and Shareholders' (Deficit) Equity | ||||
Inter-company payable | -1,081 | -1,069 | ||
Total current liabilities | -1,081 | -1,069 | ||
Inter-company note payable | -277 | -271 | ||
Total liabilities | -1,358 | -1,340 | ||
Total shareholders' (deficit) equity | 7,779 | 7,834 | ||
Total liabilities and shareholders’ deficit | $6,421 | $6,494 |
Schedule_of_Supplemental_Conde3
Schedule of Supplemental Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Cash flow provided by (used for) operating activities | $203 | $268 |
Cash flows from investing activities: | ||
Purchases for property, plant and equipment | -107 | -85 |
Proceeds from sale of property, plant and equipment | 6 | 1 |
Payments for purchased licenses and other assets | -50 | -60 |
Purchases and sales of short-term and other investments, net | -1 | 1 |
Net cash used for investing activities | -152 | -143 |
Cash flows from financing activities: | ||
Retirements of and payments for long-term debt and capital lease obligations | -3,319 | -632 |
Debt issuance proceeds, net of debt issuance costs | 3,982 | 481 |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | -782 | 0 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 62 | 19 |
Net cash used for financing activities | -57 | -132 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -2 |
Net decrease in cash and cash equivalents | -11 | -9 |
Cash and cash equivalents, beginning of period | 711 | 772 |
Cash and cash equivalents, end of period | 700 | 763 |
Freescale Ltd.[Member] | ||
Cash flow provided by (used for) operating activities | 41 | 4 |
Cash flows from investing activities: | ||
Inter-company loan receivable, dividends and capital contributions | -102 | -28 |
Net cash used for investing activities | -102 | -28 |
Cash flows from financing activities: | ||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 62 | 19 |
Inter-company loan payable, dividends and capital contributions | 0 | 6 |
Net cash used for financing activities | 62 | 25 |
Net decrease in cash and cash equivalents | 1 | 1 |
Cash and cash equivalents, beginning of period | 1 | 2 |
Cash and cash equivalents, end of period | 2 | 3 |
Subsidiary Issuer [Member] | ||
Cash flow provided by (used for) operating activities | -71 | 265 |
Cash flows from investing activities: | ||
Purchases for property, plant and equipment | -42 | -34 |
Proceeds from sale of property, plant and equipment | 0 | |
Payments for purchased licenses and other assets | -23 | -25 |
Purchases and sales of short-term and other investments, net | -1 | 1 |
Inter-company loan receivable, dividends and capital contributions | 26 | 10 |
Net cash used for investing activities | -40 | -48 |
Cash flows from financing activities: | ||
Retirements of and payments for long-term debt and capital lease obligations | -3,319 | -631 |
Debt issuance proceeds, net of debt issuance costs | 3,982 | 481 |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | -758 | |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 0 | |
Inter-company loan payable, dividends and capital contributions | 102 | 25 |
Net cash used for financing activities | 7 | -125 |
Net decrease in cash and cash equivalents | -104 | 92 |
Cash and cash equivalents, beginning of period | 104 | 56 |
Cash and cash equivalents, end of period | 0 | 148 |
Guarantor [Member] | ||
Cash flow provided by (used for) operating activities | 0 | |
Cash flows from investing activities: | ||
Inter-company loan receivable, dividends and capital contributions | -105 | -28 |
Net cash used for investing activities | -105 | -28 |
Cash flows from financing activities: | ||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 0 | |
Inter-company loan payable, dividends and capital contributions | 105 | 29 |
Net cash used for financing activities | 105 | 29 |
Net decrease in cash and cash equivalents | 0 | 1 |
Cash and cash equivalents, beginning of period | 0 | |
Cash and cash equivalents, end of period | 0 | 1 |
Non-Guarantors [Member] | ||
Cash flow provided by (used for) operating activities | 433 | 127 |
Cash flows from investing activities: | ||
Purchases for property, plant and equipment | -65 | -51 |
Proceeds from sale of property, plant and equipment | 6 | 1 |
Payments for purchased licenses and other assets | -27 | -35 |
Inter-company loan receivable, dividends and capital contributions | -3 | -8 |
Net cash used for investing activities | -89 | -93 |
Cash flows from financing activities: | ||
Retirements of and payments for long-term debt and capital lease obligations | 0 | -1 |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | -24 | |
Inter-company loan payable, dividends and capital contributions | -223 | -134 |
Net cash used for financing activities | -247 | -135 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -2 |
Net decrease in cash and cash equivalents | 92 | -103 |
Cash and cash equivalents, beginning of period | 606 | 714 |
Cash and cash equivalents, end of period | 698 | 611 |
Eliminations [Member] | ||
Cash flow provided by (used for) operating activities | -200 | -128 |
Cash flows from investing activities: | ||
Inter-company loan receivable, dividends and capital contributions | 184 | 54 |
Net cash used for investing activities | 184 | 54 |
Cash flows from financing activities: | ||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 0 | |
Inter-company loan payable, dividends and capital contributions | 16 | 74 |
Net cash used for financing activities | $16 | $74 |