Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 03, 2014 | Jun. 28, 2013 |
Document Documentand Entity Information [Abstract] | ' | ' | ' |
Trading Symbol | 'FSL | ' | ' |
Entity Registrant Name | 'Freescale Semiconductor, Ltd. | ' | ' |
Entity Central Index Key | '0001392522 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 259,739,795 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $810 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | $1,082 | $1,085 | $1,038 | $981 | $957 | $1,009 | $1,029 | $950 | $4,186 | $3,945 | $4,572 | |||||||||||
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,399 | 2,304 | 2,677 | |||||||||||
Gross margin | 475 | 473 | 441 | 398 | 375 | 424 | 440 | 402 | 1,787 | 1,641 | 1,895 | |||||||||||
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 464 | 438 | 510 | |||||||||||
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 755 | 742 | 797 | |||||||||||
Amortization expense for acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13 | 232 | |||||||||||
Reorganization of business and other | ' | ' | ' | ' | ' | ' | ' | ' | 24 | -15 | 82 | |||||||||||
Operating (loss) earnings | 145 | 157 | 125 | 104 | 56 | 127 | 112 | 168 | 531 | 463 | 274 | |||||||||||
Loss on extinguishment or modification of long-term debt, net | ' | ' | ' | ' | ' | ' | ' | ' | -217 | -32 | -97 | |||||||||||
Other expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -482 | -531 | -559 | |||||||||||
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -168 | -100 | -382 | |||||||||||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 40 | 2 | 28 | |||||||||||
Net loss | ($118) | $23 | ($65) | ($48) | ($35) | ($24) | ($34) | ($9) | ($208) | ($102) | ($410) | |||||||||||
Net loss per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic net loss per share | ($0.46) | $0.09 | ($0.25) | ($0.19) | ($0.14) | ($0.10) | ($0.14) | ($0.04) | ($0.81) | ($0.41) | ($1.82) | |||||||||||
Diluted net loss per share | ($0.46) | [1] | $0.09 | [1] | ($0.25) | [1] | ($0.19) | [1] | ($0.14) | [1] | ($0.10) | [1] | ($0.14) | [1] | ($0.04) | [1] | ($0.81) | [1] | ($0.41) | [1] | ($1.82) | [1] |
Weighted average common shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 258 | [2] | 258 | [2] | 255 | [2] | 252 | [2] | 249 | [2] | 249 | [2] | 248 | [2] | 247 | [2] | 256 | [2] | 248 | [2] | 226 | [2] |
Weighted Average Number of Shares Outstanding, Diluted | 262 | 261 | 259 | 256 | 251 | 251 | 250 | 251 | 259 | 251 | 227 | |||||||||||
[1] | No dilutive securities have been included in the diluted net loss per share calculations, as a net loss was incurred in all periods presented | |||||||||||||||||||||
[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 | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ($118) | $23 | ($65) | ($48) | ($35) | ($24) | ($34) | ($9) | ($208) | ($102) | ($410) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -6 | 0 | -5 |
Derivative instruments adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized (losses) gains arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | -8 | 6 | -4 |
Reclassification adjustment for items included in net earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1 | 0 |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 47 | -18 | 7 |
Amortization of actuarial gains included in net loss | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 0 | 0 |
Other comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 35 | -11 | -2 |
Comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($173) | ($113) | ($412) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $747 | $711 |
Accounts receivable, net | 388 | 384 |
Inventory, net | 733 | 797 |
Other current assets | 127 | 166 |
Total current assets | 1,995 | 2,058 |
Property, plant and equipment, net | 681 | 715 |
Intangible assets, net | 52 | 64 |
Other assets, net | 319 | 334 |
Total assets | 3,047 | 3,171 |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ' | ' |
Current portion of long-term debt and capital lease obligations | 93 | 6 |
Accounts payable | 398 | 323 |
Accrued liabilities and other | 371 | 543 |
Total current liabilities | 862 | 872 |
Long-term debt | 6,386 | 6,375 |
Other liabilities | 393 | 455 |
Total liabilities | 7,641 | 7,702 |
Shareholders’ deficit: | ' | ' |
Preferred shares, par value $0.01 per share; 100 shares authorized, no shares issued and outstanding at December 31, 2013 or 2012 | 0 | 0 |
Common shares, par value $0.01 per share; 900 shares authorized, 258 and 249 issued and outstanding at December 31, 2013 and 2012, respectively | 3 | 2 |
Additional paid-in capital | 8,326 | 8,217 |
Accumulated other comprehensive earnings | 49 | 14 |
Accumulated deficit | -12,972 | -12,764 |
Total shareholders’ deficit | -4,594 | -4,531 |
Total liabilities and shareholders’ deficit | $3,047 | $3,171 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued (shares) | 0 | 0 |
Preferred shares, shares outstanding (shares) | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common Stock, Shares Authorized | 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 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Deficit Statement (USD $) | Total | Common shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Millions, except Share data, unless otherwise specified | |||||
Accumulated other comprehensive earnings, Beginning Balance at Dec. 31, 2010 | $27 | ' | ' | $27 | ' |
Accumulated deficit Beginning Balance at Dec. 31, 2010 | ' | ' | ' | ' | -12,252 |
Stockholders' Equity Attributable to Parent Beginning Balance at Dec. 31, 2010 | -4,934 | ' | ' | ' | ' |
Additional paid-in capital Beginning Balance at Dec. 31, 2010 | ' | ' | 7,289 | ' | ' |
Common shares, par value Beginning Balance at Dec. 31, 2010 | ' | 2 | ' | ' | ' |
Common Stock, Shares, Outstanding Beginning Balance at Dec. 31, 2010 | ' | 196,000,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -410 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -5 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | -4 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 7 | ' | ' | ' | ' |
Share Based Compensation Expense | 27 | ' | 27 | ' | ' |
Shares Issued During Period | ' | 49,000,000 | ' | ' | ' |
Proceeds from Issuance Initial Public Offering | 838 | ' | 838 | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | 1,000,000 | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 1 | ' | 1 | ' | ' |
Accumulated other comprehensive earnings, Ending Balance at Dec. 31, 2011 | 25 | ' | ' | 25 | ' |
Accumulated deficit Ending Balance at Dec. 31, 2011 | ' | ' | ' | ' | -12,662 |
Stockholders' Equity Attributable to Parent Ending Balance at Dec. 31, 2011 | -4,480 | ' | ' | ' | ' |
Additional paid-in capital Ending Balance at Dec. 31, 2011 | ' | ' | 8,155 | ' | ' |
Common shares, par value Ending Balance at Dec. 31, 2011 | ' | 2 | ' | ' | ' |
Common Stock, Shares, Outstanding Ending Balance at Dec. 31, 2011 | ' | 246,000,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -102 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 7 | ' | ' | 7 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | -18 | ' | ' | -18 | ' |
Share Based Compensation Expense | 39 | ' | 39 | ' | ' |
Proceeds from Issuance Initial Public Offering | 0 | ' | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | 2,000,000 | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 9 | ' | 9 | ' | ' |
Employee Stock Purchase Plans, Shares | ' | 1,000,000 | ' | ' | ' |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 14 | ' | 14 | ' | ' |
Accumulated other comprehensive earnings, Ending Balance at Dec. 31, 2012 | 14 | ' | ' | 14 | ' |
Accumulated deficit Ending Balance at Dec. 31, 2012 | -12,764 | ' | ' | ' | -12,764 |
Stockholders' Equity Attributable to Parent Ending Balance at Dec. 31, 2012 | -4,531 | ' | ' | ' | ' |
Additional paid-in capital Ending Balance at Dec. 31, 2012 | 8,217 | ' | 8,217 | ' | ' |
Common shares, par value Ending Balance at Dec. 31, 2012 | 2 | 2 | ' | ' | ' |
Common Stock, Shares, Outstanding Ending Balance at Dec. 31, 2012 | 249,000,000 | 249,000,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -208 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -6 | ' | ' | -6 | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | -8 | ' | ' | -8 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 49 | ' | ' | 49 | ' |
Share Based Compensation Expense | 43 | ' | 43 | ' | ' |
Proceeds from Issuance Initial Public Offering | 0 | ' | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | 7,000,000 | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 40 | 1 | 39 | ' | ' |
Employee Stock Purchase Plans, Shares | ' | 2,000,000 | ' | ' | ' |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 27 | ' | 27 | ' | ' |
Accumulated other comprehensive earnings, Ending Balance at Dec. 31, 2013 | 49 | ' | ' | 49 | ' |
Accumulated deficit Ending Balance at Dec. 31, 2013 | -12,972 | ' | ' | ' | -12,972 |
Stockholders' Equity Attributable to Parent Ending Balance at Dec. 31, 2013 | -4,594 | ' | ' | ' | ' |
Additional paid-in capital Ending Balance at Dec. 31, 2013 | 8,326 | ' | 8,326 | ' | ' |
Common shares, par value Ending Balance at Dec. 31, 2013 | $3 | $3 | ' | ' | ' |
Common Stock, Shares, Outstanding Ending Balance at Dec. 31, 2013 | 258,000,000 | 258,000,000 | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Deficit Consolidated Statements of Shareholder's Deficit Parenthetical | 12 Months Ended |
Dec. 31, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' |
Stockholders' Equity, Reverse Stock Split | '1-for-5.16 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($208) | ($102) | ($410) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ' | ' | ' |
Depreciation and amortization | 275 | 275 | 724 |
Reorganization of business and other | 24 | -15 | 82 |
Share-based compensation | 48 | 43 | 27 |
Deferred incomes taxes | 58 | 25 | 13 |
Loss on extinguishment or modification of long-term debt | 217 | 32 | 97 |
Proceeds from business interruption insurance recoveries | 0 | 96 | 52 |
Deferred intellectual property revenue | -86 | 86 | 0 |
Other non-cash items | -7 | 4 | -45 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable, net | -32 | 83 | 24 |
Inventory, net | 60 | 17 | -66 |
Accounts payable and accrued liabilities | -38 | -145 | -383 |
Other operating assets and liabilities | 10 | -49 | -16 |
Net cash provided by operating activities | 321 | 350 | 99 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property, plant and equipment | -151 | -123 | -135 |
Proceeds from sale of property, plant and equipment | 12 | 19 | 68 |
Purchases and sales of short-term and other investments, net | -1 | 1 | 3 |
Payments for purchased licenses and other assets | -70 | -73 | -62 |
Proceeds from Insurance Settlement, Investing Activities | 0 | 0 | 37 |
Net cash used for investing activities | -210 | -176 | -89 |
Cash flows from financing activities: | ' | ' | ' |
Retirements of and payments for long-term debt and capital lease obligations | -5,062 | -734 | -1,853 |
Debt issuance proceeds, net of deferred financing costs | 4,929 | 481 | 724 |
Proceeds from Issuance Initial Public Offering | 0 | 0 | 838 |
Proceeds from stock option exercises and ESPP share purchases | 62 | 21 | 0 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 1 |
Net cash used for financing activities | -71 | -232 | -290 |
Effect of exchange rate changes on cash and cash equivalents | -4 | -3 | 9 |
Net increase (decrease) in cash and cash equivalents | 36 | -61 | -271 |
Cash and cash equivalents, beginning of period | 711 | 772 | 1,043 |
Cash and cash equivalents, end of period | $747 | $711 | $772 |
Overview_and_Basis_of_Presenta
Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Overview and Basis of Presentation | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation and Principles of Consolidation: Freescale Semiconductor, Inc. (“Freescale Inc.”) was incorporated in Delaware in 2003. In the second quarter of 2004, Motorola, Inc. (“Motorola”) transferred substantially all of its semiconductor businesses’ assets and liabilities to Freescale Inc. (the “Contribution”) in anticipation of an initial public offering (IPO) of Freescale Inc. Class A common stock; the IPO was completed on July 21, 2004. Prior to the IPO, Freescale Inc. was a wholly owned subsidiary of Motorola. All of the Freescale Inc. Class B shares of common stock were held by Motorola until Motorola distributed its remaining ownership interest in Freescale Inc. by means of a special dividend to its common stockholders (the “Distribution”) on December 2, 2004 (the “Distribution Date”). | |
On December 1, 2006, Freescale Inc. was acquired by a consortium of private equity funds (the “Merger”). The consortium includes The Blackstone Group, The Carlyle Group, funds advised by Permira Advisers, LLC, TPG Capital and others (collectively, the “Sponsors”). Pursuant to the terms of the Merger, Freescale Inc. continues as a wholly owned indirect subsidiary of Freescale Semiconductor, Ltd. (“Freescale Ltd.”). At the close of the Merger, Freescale Inc. became a subsidiary of Freescale Semiconductor Holdings V, Inc. (“Holdings V”), which is wholly owned by Freescale Semiconductor Holdings IV, Ltd. (“Holdings IV”), which is wholly owned by Freescale Semiconductor Holdings III, Ltd. (“Holdings III”), which is wholly owned by Freescale Semiconductor Holdings II, Ltd. (“Holdings II”), which is wholly owned by Freescale Ltd. All five of these companies were formed for the purposes of facilitating the Merger and are collectively referred to as the “Parent Companies.” Freescale Holdings L.P., a Cayman Islands limited partnership (“Freescale LP”), an entity controlled by the Sponsors, owns the majority of the outstanding shares of Freescale Ltd. as of December 31, 2013. The reporting entity subsequent to the Merger is Freescale Ltd. Freescale Ltd. refers to the operations of Freescale Ltd. and its subsidiaries and may be referred to as the “Company,” “Freescale,” “we,” “us” or “our,” as the context requires. | |
Our consolidated financial statements include all majority-owned subsidiaries and assets and liabilities of the Company. Investments in which the Company exercises significant influence, but which it does not control, are accounted for under the equity method of accounting. Investments in which the Company does not exercise significant influence are recorded at cost. All intercompany transactions between and among the Company and its subsidiaries have been eliminated. | |
In connection with the Merger, Freescale Inc. incurred significant indebtedness. In addition, the purchase price paid in connection with the Merger was allocated to state the acquired assets and assumed liabilities at fair value. The purchase accounting adjustments (i) increased the carrying value of our inventory and property, plant and equipment, (ii) established intangible assets for our trademarks / tradenames, customer relationships, developed technology / purchased licenses, and in-process research and development (which was expensed in the financial statements after the consummation of the Merger), and (iii) revalued our long-term benefit plan obligations, among other things. Subsequent to the Merger, interest expense and non-cash depreciation and amortization charges increased significantly. During 2008, however, we incurred substantial non-cash impairment charges against the goodwill and intangible assets established at the time of the Merger. This event served to reduce the post-Merger increase in our non-cash amortization charges, although they are still above pre-Merger levels. As of December 31, 2011, the majority of these adjustments were fully amortized. | |
During the second quarter of 2011, we completed an IPO with an over-allotment option under which we sold a total of 49 million of our common shares at a public offering price of $18.00 per share. We utilized the net proceeds, along with cash on hand: (i) to repay or redeem a portion of our outstanding indebtedness, (ii) to pay a termination fee to affiliates and advisors of our Sponsors in connection with the termination of our management agreements and (iii) to pay various fees and expenses in connection with amending our Credit Facility, including the establishment of the Replacement Revolver. (Refer to Note 11, “Certain Relationships and Related Party Transactions,” for further discussion of the payment to affiliates and advisors of our Sponsors.) | |
We consider events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. | |
Risks and Uncertainties: Our business is significantly impacted by demand for electronic content in automobiles, networking and wireless infrastructure equipment, various industrial devices relating to factory automation, energy conservation and medical equipment, and consumer electronic devices. We operate in an industry that is cyclical and subject to constant and rapid technological change, product obsolescence, price erosion, evolving standards, short product life-cycles and fluctuations in product supply and demand. | |
We continue to focus our resources on our core automotive, networking, industrial and consumer products. Our future net sales and profitability will be affected by, among other factors, the general global economic environment, our ability to meet unscheduled or temporary increases in demand and our ability to meet product development launch cycles in our targeted markets, among other factors. | |
Revenue Recognition: We recognize revenue from product sales when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable, and collection of the related receivable is reasonably assured, which is generally at the time of shipment. Sales with destination point terms, which are related primarily to European customers where these terms are customary and certain customers to whom Freescale ships product directly from Asia, are recognized upon delivery. Accruals are established, with the associated reduction to net sales at the time the related revenue is recognized, for allowances for discounts and product returns based on actual historical experience. Revenue for services is recognized ratably over the contract term or as services are performed. | |
Net sales from contracts with multiple deliverables are recognized as each deliverable is earned based on the relative fair value of each deliverable when there are no undelivered items that are essential to the functionality of the delivered items and when the amount is not contingent upon delivery of the undelivered items. More specifically, the deliverables under each arrangement are analyzed to determine whether they are separate units of accounting, and if so, the total arrangement consideration is allocated based on each deliverable’s relative selling price using vendor-specific objective evidence (“VSOE”), third-party evidence (“TPE”), or estimated selling prices (“ESP”). When we are unable to establish selling price using VSOE or TPE, we use ESP in our allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact a sale if the product or service was sold on a standalone basis. The ESP is determined by considering multiple factors including, but not limited to, our pricing practices, gross margin objectives, internal costs and industry specific information. Changes in any number of these factors may have a substantial impact on the selling price as assigned to each deliverable. These inputs and assumptions represent management’s best estimates at the time of the transaction. Applicable receivables are discounted in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Revenue related to licensing agreements is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection of resulting receivables is reasonably assured. Revenue from upfront payments for the licensing of our patents is recognized when the arrangement is mutually signed, if there is no future delivery or future performance obligations and all other criteria are met. When patent licensing arrangements include royalties for future sales of the licensees’ products using our licensed patented technology, revenue is recognized based on royalty reports received from the licensee, provided that all other criteria have been met. As a percentage of sales, revenue related to intellectual property sales or licensing agreements represented 5%, 5% and 3% for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Distributor Sales: Revenue from sales to distributors of our products is recognized when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable, and collection of the related receivable is reasonably assured, which is generally at the time of shipment. In response to competitive market conditions, we offer incentive programs common to the semiconductor industry whereby distributors receive certain price adjustments to meet individual competitive opportunities, or are allowed to return or scrap a limited amount of product in accordance with contractual terms agreed upon with the distributor, or receive price protection credits when our standard published prices are lowered from the price the distributor paid for product still in its inventory. Accruals for the estimated distributor incentives are established at the time of the sale, along with a related reduction to net sales, based on the terms of the various incentive programs, historical experience with such programs, prevailing market conditions and current distributor inventory levels. We continually monitor the actual claimed allowances against our estimates, and we adjust our estimates as appropriate to reflect trends in pricing environments and distributor resales and inventory levels. Distributor reserves are also adjusted when recent historical data does not represent anticipated future activity. As a percentage of sales, revenue derived from distributors represented 25%, 23% and 23% for the years ended December 31, 2013, 2012 and 2011, respectively. | |
On January 7, 2014, in an effort to streamline our operations and improve the efficiency of our global distribution network, we executed a consolidation of our global distribution channel from three to two distribution partners. In connection with this action, we recorded a modest reduction to net sales with a corresponding impact to gross margin and net loss in our Consolidated Statement of Operations for the year ending December 31, 2013, related to the potential impact of the discontinued distributor’s inventory held by them as of December 31, 2013. | |
Product-Related Expenses: Shipping and handling costs associated with product sales are included in cost of sales. Expenditures for advertising are expensed as incurred, and are included in selling, general and administrative expenses. Provisions for estimated costs related to product warranties are made at the time the related sale is recorded, based on historic trends and are included in cost of sales. Research and development costs are expensed as incurred. | |
Share-Based Compensation Costs: We have several share-based employee compensation plans, which are more fully described in Note 6, “Employee Benefit and Incentive Plans.” We account for awards granted under those plans using the fair-value recognition provisions of ASC Topic 718, “Compensation-Stock Compensation” (“ASC Topic 718”). We estimate the fair value of non-qualified options using the Black-Scholes option-pricing model with the weighted-average assumptions listed in Note 6 or using the Monte Carlo valuation model, as appropriate. | |
Foreign Currency Transactions: The effects of remeasuring the non-functional currency assets or liabilities into the functional currency as well as gains and losses on hedges of existing assets or liabilities are marked-to-market, and the result is included within other expense, net in the accompanying Consolidated Statements of Operations. Gains and losses on financial instruments that hedge future cash flows are deferred until such time as the underlying transactions are recognized or are recorded immediately when it is probable the transaction will not occur. Gains or losses on financial instruments that do not qualify as hedges are recognized immediately as income or expense. | |
The effects of translating the financial position and results of operations of local currency functional operations for certain of our non-U.S. subsidiaries into U.S. dollars are included in a separate component of shareholders’ deficit. | |
Cash and Cash Equivalents: We consider all highly liquid investments, not considered short-term investments, purchased with an original maturity of three months or less to be cash equivalents. | |
Inventory: Inventory is stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates average costs on a first-in first-out basis. Standard costs are based on the normal utilization of installed factory capacity. Costs associated with underutilization of capacity are expensed as incurred. We review inventory quarterly for salability and obsolescence. A specific allowance is provided for inventory considered unlikely to be sold. We write-off inventory in the period in which disposal occurs. | |
Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated amortization and depreciation. Depreciation is recorded using the straight-line method, based on the lesser of the estimated useful or contractual lives of the assets (buildings and building equipment, 5-40 years; machinery and equipment, 3-17 years), and commences once the assets are ready for their intended use. The useful lives of the assets acquired by Freescale Ltd. as part of the Merger were established in connection with the allocation of fair values at December 2, 2006 and were largely fully depreciated as of December 31, 2011. | |
Assets Held for Sale: When management determines that an asset is to be sold and that it is available for immediate sale subject only to terms that are usual and customary, the asset is no longer depreciated and is reclassified to assets held for sale. Assets held for sale are reported in other current assets at the lower of the carrying amount or fair value less costs to sell. | |
Intangible Assets: Our intangible assets are amortized on a straight-line basis over their respective estimated useful lives ranging from two to ten years. The useful lives of the intangible assets acquired by Freescale Ltd. as part of the Merger were established in connection with the allocation of fair values at December 2, 2006 and were largely fully amortized as of December 31, 2011. We have no intangible assets with indefinite useful lives. | |
Impairment of Long-Lived Assets: Long-lived assets held and used by us and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. We evaluate recoverability of assets to be held and used by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the assets. We determine fair value based on either market quotes, if available, or discounted cash flows using a discount rate commensurate with the risk inherent in our current business model for the specific asset being valued. | |
Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and also for net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
We have reserves for taxes, associated interest, and other related costs that may become payable in future years as a result of audits by tax authorities. Although we believe that the positions taken on previously filed tax returns are fully supported, we nevertheless have established reserves recognizing that various taxing authorities may challenge certain positions, which may not be fully sustained. The tax reserves are reviewed quarterly and adjusted as events occur that affect our potential liability for additional taxes, such as lapsing of applicable statutes of limitations, proposed assessments by tax authorities, resolution of tax audits, negotiations between tax authorities of different countries concerning our transfer prices, identification of new issues and issuance of new regulations or new case law. | |
Deferred Financing Costs: We capitalize direct costs incurred to obtain financings and amortize these costs over the terms of the related debt instrument using the effective interest method. Upon the extinguishment of the related debt, any unamortized deferred financing costs are immediately expensed. | |
Fair Values of Financial Instruments: The fair values of financial instruments are determined based on quoted market prices and market interest rates as of the end of the reporting period. Our financial instruments include cash and cash equivalents, accounts receivable, investments, accounts payable, accrued liabilities, derivative contracts and long-term debt. Except for the fair value of our long-term debt, the fair values of these financial instruments were not materially different from their carrying or contract values at December 31, 2013 and 2012. See Note 3, “Fair Value Measurement,” Note 4, “Debt,” Note 5, “Risk Management” and Note 6, “Employee Benefit and Incentive Plans” for further details concerning fair value measurement, the fair value of our long-term debt, derivative contracts and pension plan assets, respectively. | |
Use of Estimates: 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 the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassifications: Certain amounts reported in previous periods have been reclassified to conform to the current presentation. | |
Business Segments: Management believes the current organizational structure of our sales and marketing, new product introduction, and supply chain operations enables us to execute to our strategic growth initiatives. We have five major focused product groups to facilitate faster decision making and focus on delivering new products. Based upon the current organizational structure, we operate and account for our results in one reportable segment. We design, develop, manufacture and market high performance semiconductor products. Our Chief Executive Officer (CEO) has been identified as the Chief Operating Decision Maker as defined by ASC Topic 280, “Segment Reporting” (“ASC Topic 280”). We have one operating segment, as defined by ASC Topic 280, and therefore, the aggregation criteria to determine reportable segments are not applicable. |
Other_Financial_Data
Other Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 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 2013, 2012 and 2011 was $203 million, $191 million and $145 million, respectively. Of these amounts, for 2013 and 2012, $164 million and $136 million, respectively, were associated with multiple deliverable arrangements entered into during the second quarter of 2012. The arrangements included (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 received under these agreements was $304 million, of which $78 million was received in 2013 and $198 million was received in 2012. The remaining cash of $28 million will be received in connection with one of these deliverable arrangements over the next six years, with $5 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 was recognized for the accounting units when the basic revenue recognition criteria were 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 was recognized upon delivery of such items, which concluded in the fourth quarter of 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 December 31, 2013 and December 31, 2012, included in accrued liabilities and other was $1 million and $101 million, respectively, of deferred revenue related to our intellectual property and other agreements. | ||||||||||||||||
Loss on Extinguishment or Modification of Long-Term Debt, net | ||||||||||||||||
During 2013, we recorded charges totaling $217 million in the accompanying Consolidated Statement of Operations associated with multiple debt refinancing and redemption transactions throughout the year. These charges consisted of make-whole premiums, the write-off of unamortized deferred financing costs and original issue discount (OID) associated with the extinguished debt and other expenses not eligible for capitalization in accordance with ASC Subtopic 470-50, “Modifications and Extinguishments” (“ASC Subtopic 470-50”). (Refer to Note 4, “Debt,” for definitions and discussion of transactions and capitalized terms referenced in this section.) | ||||||||||||||||
During 2012, we recorded charges totaling $32 million in the accompanying Consolidated Statement of Operations associated with (i) the refinancing of a portion of our Senior Subordinated Notes, which included both the extinguishment and modification of existing debt and the issuance of the 2012 Term Loan, and (ii) the redemption of a portion of our senior notes. These charges consisted of call premiums, the write-off of unamortized deferred financing costs associated with the extinguished debt and other expenses not eligible for capitalization. | ||||||||||||||||
During 2011 and in connection with the completion of the IPO, we recorded a net charge of $97 million in the accompanying Consolidated Statement of Operations associated with (i) the amendment of the Credit Facility, (ii) the redemption of indebtedness using the proceeds from the IPO and the over-allotment exercise, (iii) the refinancing of indebtedness and (iv) the open-market repurchases of our senior unsecured notes. | ||||||||||||||||
Other Expense, Net | ||||||||||||||||
The following table displays the amounts comprising other expense, net in the accompanying Consolidated Statements of Operations: | ||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||||||
Interest expense | $ | (490 | ) | $ | (519 | ) | $ | (572 | ) | |||||||
Interest income | 7 | 9 | 9 | |||||||||||||
Interest expense, net | (483 | ) | (510 | ) | (563 | ) | ||||||||||
Other, net | 1 | (21 | ) | 4 | ||||||||||||
Other expense, net | $ | (482 | ) | $ | (531 | ) | $ | (559 | ) | |||||||
Cash paid for interest was $497 million, $511 million and $524 million for 2013, 2012 and 2011, respectively. | ||||||||||||||||
During the year ended 2012, we recorded losses in other, net of $21 million 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. During the year ended 2011, we recorded a gain in other, net of $4 million primarily attributable to foreign currency fluctuations partially offset by changes in the fair value of our interest rate swaps, interest rate caps and gold swap contracts. | ||||||||||||||||
Net 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. Approximately 15 million, 14 million and 12 million for 2013, 2012 and 2011, 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 loss per common share computations for the periods presented: | ||||||||||||||||
(in millions, except per share amount) | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||||
Basic net loss per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (208 | ) | $ | (102 | ) | $ | (410 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding (1) | 256 | 248 | 226 | |||||||||||||
Basic net loss per share | $ | (0.81 | ) | $ | (0.41 | ) | $ | (1.82 | ) | |||||||
Diluted net loss per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (208 | ) | $ | (102 | ) | $ | (410 | ) | |||||||
Denominator: | ||||||||||||||||
Number of shares used in basic computation (1) | 256 | 248 | 226 | |||||||||||||
Add: Incremental shares for dilutive effect of warrants (2) | — | — | — | |||||||||||||
Add: Incremental shares for dilutive effect of stock options (3) | 2 | 2 | 1 | |||||||||||||
Add: Incremental shares for dilutive effect of unvested RSUs (4) | 1 | 1 | — | |||||||||||||
Adjusted weighted average common shares outstanding | 259 | 251 | 227 | |||||||||||||
Diluted net loss per share (5) | $ | (0.81 | ) | $ | (0.41 | ) | $ | (1.82 | ) | |||||||
-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, 4 million and 1 million common shares that were outstanding during 2013, 2012 and 2011, 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 both 2013 and 2011 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 unvested RSUs that were anti-dilutive in 2012. | |||||||||||||||
-5 | No dilutive securities have been included in the diluted net loss per share calculations, as a net loss was incurred in all periods presented. | |||||||||||||||
Balance Sheets Supplemental Information | ||||||||||||||||
Inventory, Net | ||||||||||||||||
Inventory, net consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Work in process and raw materials | $ | 497 | $ | 578 | ||||||||||||
Finished goods | 236 | 219 | ||||||||||||||
Inventory, net | $ | 733 | $ | 797 | ||||||||||||
As of December 31, 2013 and December 31, 2012, we had $61 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. | ||||||||||||||||
Other Current Assets | ||||||||||||||||
Other current assets consisted of the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Deferred income taxes | $ | 54 | $ | 86 | ||||||||||||
Prepaid expenses | 27 | 28 | ||||||||||||||
Miscellaneous receivables | 19 | 20 | ||||||||||||||
Income tax receivable | 6 | 10 | ||||||||||||||
Other | 21 | 22 | ||||||||||||||
Total other current assets | $ | 127 | $ | 166 | ||||||||||||
Property, Plant and Equipment, Net | ||||||||||||||||
Property, plant and equipment, net consisted of the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Land | $ | 56 | $ | 56 | ||||||||||||
Buildings and improvements | 862 | 854 | ||||||||||||||
Machinery and equipment | 2,520 | 2,471 | ||||||||||||||
Assets not yet placed in service | 24 | 21 | ||||||||||||||
Total | 3,462 | 3,402 | ||||||||||||||
Less accumulated depreciation and amortization | (2,781 | ) | (2,687 | ) | ||||||||||||
Property, plant and equipment, net | $ | 681 | $ | 715 | ||||||||||||
Depreciation and amortization expense was $181 million, $179 million and $393 million for 2013, 2012 and 2011, respectively. Included in property, plant and equipment, net are capital lease assets of $1 million and $6 million as of December 31, 2013 and 2012, respectively. These capital lease amounts are net of accumulated amortization of $20 million and $35 million as of December 31, 2013 and 2012, respectively. | ||||||||||||||||
Intangible Assets, Net | ||||||||||||||||
Intangible assets, net of $52 million and $64 million at December 31, 2013 and 2012, respectively, were composed of the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Amortized | Accumulated | Amortized | Accumulated | |||||||||||||
Cost | Amortization | Cost | Amortization | |||||||||||||
Developed technology / purchased licenses | $ | 40 | $ | 25 | $ | 39 | $ | 25 | ||||||||
Trademarks / tradenames | 144 | 107 | 144 | 94 | ||||||||||||
Intangible assets, net | $ | 184 | $ | 132 | $ | 183 | $ | 119 | ||||||||
Amortization expense for these intangible assets was $27 million, $29 million and $248 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense is estimated to be $25 million in 2014, $20 million in 2015 and $15 million in 2016. There is currently no amortization expense scheduled past 2016. A significant portion of our developed technology established in connection with the Merger became fully amortized during 2011. In connection with the 2012 Strategic Realignment, we recorded an $11 million accelerated amortization charge to reorganization of business and other in the accompanying Consolidated Statement of Operations in 2012 associated with the change in remaining useful lives of certain of our purchased licenses. As a result, operating earnings decreased and net loss increased by approximately the same amount, or by $0.04 per share. (Refer Note 10, “Reorganization of Business and Other” for further details regarding this charge.) | ||||||||||||||||
Other Assets, Net | ||||||||||||||||
Other assets, net consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Deferred financing costs | $ | 102 | $ | 106 | ||||||||||||
Deferred income taxes | 92 | 101 | ||||||||||||||
Tool and die, net | 56 | 53 | ||||||||||||||
Other long-term receivables | 34 | 43 | ||||||||||||||
Asia land leases | 18 | 19 | ||||||||||||||
Income tax receivable | 11 | 7 | ||||||||||||||
Other | 6 | 5 | ||||||||||||||
Total other assets, net | $ | 319 | $ | 334 | ||||||||||||
Accrued Liabilities and Other | ||||||||||||||||
Accrued liabilities consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Employee compensation | $ | 150 | $ | 120 | ||||||||||||
Interest payable | 75 | 103 | ||||||||||||||
Severance | 31 | 107 | ||||||||||||||
Taxes other than income taxes | 17 | 9 | ||||||||||||||
Deferred revenue | 1 | 101 | ||||||||||||||
Other | 97 | 103 | ||||||||||||||
Total accrued liabilities and other | $ | 371 | $ | 543 | ||||||||||||
Other Liabilities | ||||||||||||||||
Other liabilities consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Retiree healthcare obligation | $ | 117 | $ | 157 | ||||||||||||
Pension obligations | 107 | 102 | ||||||||||||||
Deferred income taxes | 65 | 43 | ||||||||||||||
Environmental reserves | 39 | 39 | ||||||||||||||
Income taxes payable | 28 | 71 | ||||||||||||||
Other | 37 | 43 | ||||||||||||||
Total other liabilities | $ | 393 | $ | 455 | ||||||||||||
Common Shares | ||||||||||||||||
During 2011, we effected a 1-for-5.16 reverse stock split of our common shares which is referred to as a share consolidation under Bermuda law. The reverse stock split increased the par value of those common shares from $0.005 per share to $0.0258 per share. As a result, the number of shares outstanding has been adjusted retrospectively to reflect the reverse stock split for January 1, 2011 balances. Also, the exercise price and the number of common shares issuable under the Company’s share-based compensation plans and the authorized and issued share capital, as discussed in Note 6, “Employee Benefit and Incentive Plans,” have been adjusted retrospectively to reflect the reverse stock split. Also during 2011, the par value of the common shares was reduced from $0.0258 per share to $0.01 per share, which resulted in an authorized share capital of 1,000 million shares, of which 900 million were designated common shares, par value of $0.01 each, and 100 million were designated preference shares, par value of $0.01 each. | ||||||||||||||||
Accumulated Other Comprehensive Earnings | ||||||||||||||||
Unrealized | Unrealized | Foreign Currency | Total | |||||||||||||
(Loss) | (Loss) Gain on | Translation | ||||||||||||||
Gain on | Postretirement | |||||||||||||||
Derivatives | Obligations | |||||||||||||||
Balance at of January 1, 2011 | $ | (1 | ) | $ | (2 | ) | $ | 30 | $ | 27 | ||||||
2011 net change | (4 | ) | 7 | (5 | ) | (2 | ) | |||||||||
Balance at December 31, 2011 | (5 | ) | 5 | 25 | 25 | |||||||||||
2012 net change | 7 | (18 | ) | — | (11 | ) | ||||||||||
Balance at December 31, 2012 | 2 | (13 | ) | 25 | 14 | |||||||||||
2013 net change | (8 | ) | 49 | (6 | ) | 35 | ||||||||||
Balance at December 31, 2013 | $ | (6 | ) | $ | 36 | $ | 19 | $ | 49 | |||||||
During 2012, in connection with the dissolution of the Sendai, Japan entity, the cumulative translation adjustment associated with this entity was reclassified from accumulated other comprehensive earnings to reorganization of business and other within the accompanying Consolidated Statement of Operations. This amount was offset by the effects of translating the financial position and results of operations of local currency functional operations for certain of our non-U.S. subsidiaries into U.S. dollars. |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||
Dec. 31, 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 December 31, 2013 and 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 2013 and 2012, there were no transfers between Level 1 and Level 2. We had no Level 3 instruments at December 31, 2013 or 2012. | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of December 31, 2013 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Time deposits (1) | $ | 339 | $ | 339 | $ | — | |||||||
Money market mutual funds (1) | 5 | 5 | — | ||||||||||
Foreign currency derivative contracts (2) | 2 | — | 2 | ||||||||||
Interest rate swap agreements (3) | 1 | — | 1 | ||||||||||
Total Assets | $ | 347 | $ | 344 | $ | 3 | |||||||
Liabilities | |||||||||||||
Foreign currency derivative contracts (2) | $ | 5 | $ | — | $ | 5 | |||||||
Interest rate swap agreements (3) | 6 | — | 6 | ||||||||||
Commodity derivative contracts (4) | 3 | — | 3 | ||||||||||
Total Liabilities | $ | 14 | $ | — | $ | 14 | |||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of December 31, 2012 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Time deposits (1) | $ | 285 | $ | 285 | $ | — | |||||||
Money market mutual funds (1) | 192 | 192 | — | ||||||||||
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 Consolidated Balance Sheets at December 31, 2013 and December 31, 2012: | |||||||||||||
-1 | Time deposits and money market mutual funds are reported as cash and cash equivalents. The decline in funds invested in money market mutual funds from December 31, 2012 to December 31, 2013 was largely due to a shift of cash from lower yielding funds to bank accounts to take advantage of the fee offset obtained on bank account holdings. | ||||||||||||
-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 $6,566 million, exclusive of $93 million of current maturities, at December 31, 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 | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
The carrying value of our long-term debt at December 31, 2013 and December 31, 2012 consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Extended maturity term loan due 2016 | $ | — | $ | 2,215 | ||||
2012 Term Loan due 2019 | — | 491 | ||||||
2016 Term Loan | 347 | — | ||||||
2020 Term Loan | 2,349 | — | ||||||
2021 Term Loan | 790 | — | ||||||
Replacement revolver due 2016 | — | — | ||||||
Senior secured 10.125% notes due 2018 | — | 663 | ||||||
Senior secured 9.25% notes due 2018 | — | 1,380 | ||||||
Senior secured 5.00% notes due 2021 | 500 | — | ||||||
Senior secured 6.00% notes due 2022 | 960 | — | ||||||
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 | 6,479 | 6,380 | ||||||
Less: current maturities | (93 | ) | (5 | ) | ||||
Total long-term debt | $ | 6,386 | $ | 6,375 | ||||
-1 | The senior unsecured floating rate notes due 2014 bear interest at a rate, reset quarterly, equal to three month LIBOR (0.24% in effect on December 31, 2013) plus 3.875% per annum. | |||||||
Fourth Quarter 2013 Debt Refinancing Transactions | ||||||||
On November 1, 2013, Freescale Inc. issued $960 million aggregate principal amount of 6.00% senior secured notes (“6.00% Secured Notes”) which will mature on January 15, 2022. The proceeds from this issuance, along with cash on hand, were used to redeem the remaining $884 million of 9.25% senior secured notes due 2018 ("9.25% Secured Notes") on December 2, 2013, and to pay make-whole premiums totaling $69 million, accrued interest of $11 million and related fees and expenses in a transaction referred to as the “Q4 2013 Debt Refinancing Transaction.” The Q4 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 6.00% 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 9.25% 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 6.00% Secured Notes were also lenders under the 9.25% 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 ASC Subtopic 470-50 as the difference between the present value of the cash flows under the 6.00% Secured Notes and the present value of the cash flows under the 9.25% Secured Notes held by these lenders was less than 10%. | ||||||||
In connection with this transaction, we incurred approximately $13 million of fees and expenses and $69 million of make-whole premiums, of which a total of $16 million were capitalized and will be amortized over the term of the notes. We recorded a charge of $75 million in the accompanying Consolidated Statement of Operations associated with this transaction, which consisted of the majority of the make-whole premiums, the write-off of unamortized deferred financing costs associated with the extinguished debt and other expenses not eligible for capitalization under ASC Subtopic 470-50. (Refer to the "Senior Notes," "Guarantees and Right of Payment," and "Redemption" discussion later in this section for additional details on the terms of the 6.00% Secured Notes. Additionally, refer to Note 2, “Other Financial Data,” for further information on the charges associated with the debt transactions discussed in this note.) | ||||||||
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 at par, and paid related accrued interest of $1 million. In connection with the redemption, we recorded a charge of $1 million in the Consolidated Statement of Operations associated with the write-off of unamortized deferred financing costs. | ||||||||
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") which will mature on January 15, 2021. 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. The proceeds from the issuance of the new term loan, along with cash on hand, were used in the fourth quarter of 2013 after the requisite notice period 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% Secured Notes, and to pay $24 million of related accrued interest along with fees and expenses associated with this transaction referred to as the “Q3 2013 Debt Refinancing Transaction.” 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 10.125% Secured Notes and a portion of the 9.25% 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 2021 Term Loan were also lenders under the redeemed 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 ASC Subtopic 470-50 as the difference between the present value of the cash flows under the 2021 Term Loan and the present value of the cash flows under the 10.125% Secured Notes and the 9.25% Secured Notes held by these lenders was less than 10%. (Refer to the "Credit Facility" discussion 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, 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. In addition to the $75 million charge we recorded in connection with the Q4 2013 Debt Refinancing Transaction, we recorded a charge of $60 million during the fourth quarter of 2013 in the accompanying Consolidated Statement of Operations associated with the redemption of these notes, which consisted of the write-off of unamortized deferred financing costs, the majority 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. 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 ASC Subtopic 470-50 as the difference between the present value of the cash flows under the 5.00% Secured Notes and the present value of the cash flows under the 10.125% Secured Notes held by these lenders was less than 10%. 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 Consolidated Statement of Operations associated with this transaction, which consisted of the majority of the make-whole premiums, the write-off of unamortized deferred financing costs and other expenses not eligible for capitalization under ASC Subtopic 470-50. (Refer to the "Senior Notes," "Guarantees and Right of Payment," and "Redemption" discussion later in this section for additional details on the terms of the 5.00% Secured Notes.) | ||||||||
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 for the 2016 Term Loan and $2.36 billion for 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 2019 (the "2012 Term Loan"), which was deemed exchanged for the 2020 Term Loan. The proceeds from the issuance of the new term loans, along with cash on hand, 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”), accrued interest of$10 million and a portion of the related fees and expenses associated with this transaction referred to as the “Q1 2013 Debt Refinancing Transaction.” (Refer to the "Credit Facility" discussion later in this section for additional details of the terms of the 2016 and 2020 Term Loans.) | ||||||||
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 ASC Subtopic 470-50, as the difference between the present value of the cash flows under 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 Consolidated Statement of Operations associated with this transaction, which consisted of the write-off of unamortized deferred financing costs, OID and other expenses not eligible for capitalization under ASC Subtopic 470-50. | ||||||||
Credit Facility | ||||||||
At December 31, 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 interest rate on both the 2020 Term Loan and 2021 Term Loan was 5.00% at December 31, 2013. At the end of 2013, the Replacement Revolver’s available capacity was $409 million, as reduced by $16 million of outstanding letters of credit. | ||||||||
2016 Term Loan | ||||||||
At December 31, 2013, $347 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 December 31, 2013, $2,373 million was outstanding under the 2020 Term Loan, which will mature on March 1, 2020. 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. 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 December 31, 2013, the 2020 Term Loan was recorded on the accompanying Consolidated Balance Sheet at a $24 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 December 31, 2013, $798 million was outstanding under the 2021 Term Loan, which will mature on January 15, 2021. 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. 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 December 31, 2013, the 2021 Term Loan was recorded on the accompanying 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. | ||||||||
Senior Notes | ||||||||
Freescale Inc. had an aggregate principal amount of $2,993 million in Senior Notes outstanding at December 31, 2013, consisting of (i) $500 million of 5.00% Secured Notes, (ii) $960 million of 6.00% Secured Notes, (iii) $57 million of senior unsecured floating rate notes due 2014 ("Floating Rate Notes"), (iv) $473 million of 10.75% senior unsecured notes due 2020 ("10.75% Unsecured Notes), (v) $739 million of 8.05% senior unsecured notes due 2020 ("8.05% Unsecured Notes") and (vi) $264 million of senior subordinated 10.125% notes due 2016 ("Senior Subordinated Notes"). With regard to our fixed rates notes, interest is payable semi-annually in arrears as follows: (i) every May 15th and November 15th for the 5.00% Secured Notes; (ii) every May 15th and November 15th commencing on May 15, 2014 for the 6.00% Secured Notes; (iii) every February 1st and August 1st for the 10.75% Unsecured Notes; (iv) every February 1stand August 1st for the 8.05% Unsecured Notes; and (v) every June 15th and December 15th for the Senior Subordinated Notes. The Floating Rate Notes bear interest at a rate, reset quarterly, equal to three-month LIBOR (which was 0.24% in effect on December 31, 2013) plus 3.875% per annum, which is payable quarterly in arrears on every March 15th, June 15th, September 15th and December 15th. | ||||||||
Guarantees and Right of Payment | ||||||||
The obligations under the Credit Facility are unconditionally guaranteed by certain of the Parent Companies and, subject to certain exceptions, each of our material domestic wholly-owned “Restricted Subsidiaries,” as defined in the Credit Facility agreement. As of December 31, 2013, Freescale Inc. had no material domestic wholly owned Restricted Subsidiaries. All obligations under the Credit Facility, and the guarantees of those obligations, are secured by substantially all the following assets of Freescale Inc. and each guarantor, subject to certain exceptions: (i) a pledge of 100% of the capital stock of each of Holdings III, Holdings IV and Holdings V, a pledge of 100% of the capital stock of Freescale Inc., 100% of the capital stock of our subsidiary SigmaTel, Inc. and 65% of the voting stock (and 100% of the non-voting stock) of each of our material wholly owned foreign subsidiaries, in each case that are directly owned by Freescale Inc. or one of the guarantors; and (ii) a security interest in, and mortgages on, substantially all tangible and intangible assets of each of Holdings IV, Holdings V and Freescale Inc. In addition, in the event that Freescale Inc. (i) transfers foreign subsidiaries to, or forms new foreign subsidiaries under, Holdings III or another foreign entity (but not any entity directly or indirectly owned by a U.S. entity) or (ii) transfers assets to such foreign subsidiaries, Freescale Inc. will be required to pledge 100% of the voting stock of those wholly owned foreign subsidiaries so transferred or formed, and such foreign subsidiaries would be required to guarantee our obligations under the Credit Agreement. There are prepayment requirements under the Credit Facility in certain circumstances and subject to certain exceptions. These potential prepayment requirements include (i) 50% of annual excess cash flow as defined in the Credit Agreement, subject to an incremental, full step-down based upon attaining certain leverage ratios; (ii) 100% of net cash proceeds of all non-ordinary course assets sales or other dispositions by Holdings III and its restricted subsidiaries if the net cash proceeds are not reinvested in the business; and (iii) 100% of the net proceeds of any issuance or incurrence of debt by Holdings III or any of its restricted subsidiaries, other than debt permitted under our Credit Facility. The foregoing mandatory prepayments will be applied ratably to each class of term loan then outstanding and will be applied to scheduled quarterly installments of such term loans in direct order of maturity. | ||||||||
The 5.00% Secured Notes are governed by the indenture dated as of May 21, 2013 (the “5.00% Indenture”), and the 6.00% Secured Notes are governed by the indenture dated as of November 1, 2013 (the “6.00% Indenture”). The Guarantors also guarantee, jointly and severally, the 5.00% Secured Notes and 6.00% Secured Notes on a senior secured basis. The 10.75% Unsecured Notes are governed by the indenture dated as of September 30, 2010 (the “10.75% Indenture”); the 8.05% Unsecured Notes are governed by the Indenture dated as of June 10, 2011 (the “8.05% Indenture”); and, the Floating Rate Notes and the Senior Subordinated Notes are governed by two indentures dated as of December 1, 2006, as supplemented and amended. While the 10.75% Unsecured Notes, 8.05% Unsecured Notes, and the Floating Rate Notes are guaranteed, jointly and severally, on a senior unsecured basis by the Guarantors, the Senior Subordinated Notes are guaranteed with a guarantee that ranks junior in right of payment to all of the other senior indebtedness of each Guarantor. | ||||||||
Relative to our overall indebtedness, the 5.00% Secured Notes and the 6.00% 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 the value of any underlying collateral, but otherwise pari passu to such senior unsecured indebtedness, and (iii) senior to all senior subordinated indebtedness. The Floating Rate Notes, the 10.75% Unsecured Notes and the 8.05% Unsecured Notes rank in right of payment (i) junior to senior secured indebtedness to the extent of the value of any underlying collateral, but otherwise pari passu to such senior secured indebtedness, (ii) pari passu to our existing senior unsecured indebtedness, and (iii) senior to all senior subordinated indebtedness. The Senior Subordinated Notes are unsecured senior subordinated obligations and rank junior in right of payment to all other of our senior secured and unsecured indebtedness. | ||||||||
Redemption | ||||||||
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 Inc. may redeem the notes, in whole or in part, at any time on or after May 15, 2016 at a redemption price equal to a fixed percentage of the notes’ principal balance ranging from 103.75% to 100%, depending upon the redemption date, plus accrued and unpaid interest as described in the indenture governing these notes. In addition, at any time on or prior to May 15, 2016, Freescale Inc. may redeem up to 35% of the aggregate principal amount of the notes with the proceeds of certain equity offerings at a redemption price equal to 105% of the aggregate principal amount 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 Inc. 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. | ||||||||
Freescale Inc. may redeem the 6.00% Secured Notes, in whole or in part, at any time prior to November 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 6.00% Indenture. Freescale Inc. may redeem the notes, in whole or in part, at any time on or after November 15, 2016 at a redemption price equal to a fixed percentage of the notes’ principal balance ranging from 104.5% to 100% , depending upon the redemption date, plus accrued and unpaid interest as described in the indenture governing these notes. In addition, at any time on or prior to November 15, 2016, Freescale Inc. may redeem up to 35% of the aggregate principal amount of the notes with the proceeds of certain equity offerings at a redemption price equal to 106% of the aggregate principal amount as described in the 6.00% Indenture. If Freescale Inc. experiences certain change of control events, the 6.00% 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. | ||||||||
Freescale Inc. may redeem, in whole or in part, the Floating Rate Notes at any time on or after December 15, 2008. The current redemption price equals 100% of the notes’ principal balance plus accrued and unpaid interest. | ||||||||
Freescale Inc. may redeem, in whole or in part, the 10.75% Unsecured Notes at any time prior to August 1, 2015 at a redemption price equal to 100% of the principal balance, plus accrued and unpaid interest to the redemption date, plus the applicable make-whole premium, as described in the 10.75% Indenture. Freescale Inc. may redeem the notes, in whole or in part, at any time on or after August 1, 2015 at a redemption price equal to a fixed percentage of the notes’ principal balance ranging from 105.375% to 100%, depending upon the redemption date, plus accrued and unpaid interest as described in the indenture governing these notes. If Freescale Inc. experiences certain change of control events, holders of the 10.75% Unsecured Notes may require Freescale Inc. to repurchase all or part of their notes at 101% of the principal balance, plus accrued and unpaid interest. | ||||||||
Freescale Inc. may redeem, in whole or in part, the 8.05% Unsecured Notes at any time prior to June 1, 2015 at a redemption price equal to 100% of the principal balance, plus accrued and unpaid interest to the redemption date, plus the applicable make-whole premium, as defined in the 8.05% Indenture. Freescale Inc. may redeem, in whole or in part, the 8.05% Unsecured Notes, at any time on or after June 1, 2015 at a redemption price equal to a fixed percentage of the notes’ principal balance ranging from 104.025%, to 100% depending upon the redemption date, plus accrued and unpaid interest as described in the indenture governing these notes. In addition, at any time on or prior to June 1, 2014, Freescale Inc. may redeem up to 35% of the aggregate principal balance of 8.05% Unsecured Notes with the proceeds of certain equity offerings at a redemption price equal to 108.05% of the aggregate principal amount, plus accrued and unpaid interest, as described in the 8.05% Indenture. If Freescale Inc. experiences certain change of control events, holders of the 8.05% Unsecured Notes may require Freescale Inc. to repurchase all or part of their 8.05% Unsecured Notes at 101% of the principal balance, plus accrued and unpaid interest. | ||||||||
Freescale Inc. may redeem, in whole or in part, the Senior Subordinated Notes at any time on or after December 15, 2011. The redemption price is at a fixed percentage of the notes’ principal balance, which currently ranges from 101.688% to 100%, depending upon the redemption date, plus accrued and unpaid interest as described in the indenture governing these notes. | ||||||||
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 December 31, 2013, Freescale Inc. was in compliance with the covenants under the Credit Facility and the Indentures and met the fixed charge ratio of 2.00:1 or greater and the total leverage ratio of 6.50:1 or lower but did not meet the senior secured first lien leverage ratio of 4.00:1 or lower or the consolidated secured debt ratio of 3.25:1 or lower. As of December 31, 2013, Freescale Inc.’s total leverage ratio was 6.50:1, senior secured first lien leverage ratio was 4.74:1, the fixed charge coverage ratio was 2.24:1 and the consolidated secured debt ratio was 5.58:1. Accordingly, we are currently restricted from making certain investments and incurring liens on assets securing indebtedness, except as otherwise permitted by the Credit Facility and Indentures. The fact that we do not meet some of 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 December 31, 2013, future obligated debt payments are $93 million in 2014, $35 million in 2015, $637 million in 2016, $32 million in 2017, $32 million in 2018 and $5,682 million thereafter. |
Risk_Management
Risk Management | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Risk Management | ' | ||||||||||
Risk Management | |||||||||||
Foreign Currency Risk | |||||||||||
The functional currency for most of our foreign operations is the U.S. dollar. Accordingly, exchange rate gains and losses are recognized on transactions in currencies other than the U.S. dollar and included in operations for the period in which the exchange rates changed. | |||||||||||
In order to reduce the exposure of our financial results resulting from fluctuations in exchange rates, our principal strategy has been to naturally hedge the foreign currency-denominated liabilities on our balance sheet against corresponding foreign currency-denominated assets such that any changes in liabilities due to fluctuations in exchange rates are inversely offset by changes in their corresponding foreign currency assets. In order to further reduce our exposure to U.S. dollar exchange rate fluctuations, we have entered into foreign currency hedge agreements related to the currency and the amount of expenses we expect to incur in jurisdictions in which our operations are located. No assurance can be given that our hedging transactions will prevent us from incurring higher foreign currency-denominated costs when translated into our U.S. dollar-based accounts in the event of a weakening of the U.S. dollar on the non-hedged portion of our costs and expenses. | |||||||||||
At December 31, 2013 and December 31, 2012, we had net outstanding foreign currency exchange contracts not designated as accounting hedges with notional amounts totaling approximately $112 million and $217 million, respectively, which are accounted for at fair value. The decline from the prior year is largely attributable to lower Euro exposure due to the payment of Euro-denominated severance liabilities during 2013. These forward contracts have original maturities of less than three months. The fair value of the forward contracts was a net unrealized loss $1 million at both December 31, 2013 and December 31, 2012. Forward contract losses of $6 million, 2 million and $2 million for 2013, 2012, and 2011, respectively, were recorded in other expense, net in the accompanying 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 December 31, 2013 and December 31, 2012: | |||||||||||
Buy (Sell) | December 31, | December 31, | |||||||||
2013 | 2012 | ||||||||||
Chinese Renminbi | $ | 30 | $ | 23 | |||||||
Euro | $ | 29 | $ | 104 | |||||||
Malaysian Ringgit | $ | 16 | $ | 26 | |||||||
Japanese Yen | $ | 15 | $ | 28 | |||||||
Indian Rupee | $ | (5 | ) | $ | (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 December 31, 2013 and December 31, 2012: | |||||||||||
Buy (Sell) | December 31, | December 31, | Hedged Exposure | ||||||||
2013 | 2012 | ||||||||||
Malaysian Ringgit | $ | 80 | $ | 68 | Cost of sales | ||||||
Chinese Renminbi | $ | 93 | $ | 53 | Cost of sales | ||||||
$ | 23 | $ | 13 | Selling, general and administrative | |||||||
$ | 23 | $ | 11 | Research and development | |||||||
Japanese Yen | $ | 35 | $ | — | Cost of sales | ||||||
Euro | $ | (33 | ) | $ | — | Net sales | |||||
At December 31, 2013 and December 31, 2012, we had cash flow designated forward contracts with a total fair value of a net unrealized (loss) gain of $(2) million and $2 million, respectively. Gains (losses) of $3 million, $1 million and less than $(1) million for the years ended 2013, 2012 and 2011, respectively, were recorded in the accompanying 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 December 31, 2013 and December 31, 2012, these contracts had net outstanding notional amounts totaling 27,500 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 $3 million and $1 million at December 31, 2013 and December 31, 2012, respectively. During 2013, 2012, and 2011, (losses) gains of $(5) million, $(3) million and $2 million, respectively, were recorded in cost of sales related to our realized results attributable to these gold swap contracts. Additionally, during 2012 and 2011, (losses) gains of less than $(1) million and $2 million, respectively, were recorded in other expense, net in the accompanying 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 2013, we paid $2 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 Consolidated Statements of Operations. | |||||||||||
In 2013, we recognized a gain of $1 million prior to the termination of the interest rate swap agreements, and in 2012 and 2011, we recognized losses of $17 million and $1 million, respectively, in other expense, net in the accompanying 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 December 31, 2013, we believe that our exposure to counterparty risk is immaterial. |
Employee_Benefit_and_Incentive
Employee Benefit and Incentive Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Employee Benefits and Share-based Compensation [Abstract] | ' | ||||||||||||
Employee Benefit and Incentive Plans | ' | ||||||||||||
Employee Benefit and Incentive Plans | |||||||||||||
Share and Equity-based Compensation | |||||||||||||
Our total share and equity-based compensation expense is presented below: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Cost of sales | $ | 11 | $ | 8 | $ | 3 | |||||||
Selling, general and administrative | 26 | 27 | 21 | ||||||||||
Research and development | 11 | 8 | 3 | ||||||||||
Total | $ | 48 | $ | 43 | $ | 27 | |||||||
2011 Omnibus Incentive Plan | |||||||||||||
Non-qualified Options | |||||||||||||
During 2013, we granted approximately 2.2 million stock options under the 2011 Omnibus Incentive Plan (the "2011 Plan") to certain executives and employees. Included in this amount was 1.9 million stock options from the April 2, 2013 annual long-term incentive grants ("2013 Annual Grant") which had a grant date fair value of $6.90 and strike price of $13.91, which was equal to the closing price on the date of grant. Total compensation costs associated with the stock options under the 2013 Annual Grant was $10 million, net of estimated forfeitures. Pursuant to the 2011 Plan, we had issued approximately 5.8 million non-qualified stock options in Freescale Ltd. (“2011 Options”) with exercise prices ranging from $8.74 to $17.30 per share, to certain qualified participants, which remain outstanding as of December 31, 2013. 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 December 31, 2013, we had approximately $26 million in unamortized expense, net of estimated 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: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Weighted average grant date fair value per share | $ | 7.05 | $ | 6.93 | $ | 7.82 | |||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 60.71 | % | 63 | % | 80 | % | |||||||
Expected lives (in years) | 4.75 | 5 | 4.75 | ||||||||||
Risk free interest rate | 0.75 | % | 0.92 | % | 0.89 | % | |||||||
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 our lack of extensive history as a public company and the fact that our 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 the 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 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 | 2,246 | $ | 14.09 | ||||||||||
Terminated, canceled or expired | (739 | ) | $ | 14.86 | |||||||||
Exercised | (306 | ) | $ | 13.71 | |||||||||
Balance at December 31, 2013 | 5,807 | $ | 13.09 | 6 | $ | 17 | |||||||
Exercisable options at December 31, 2013 | 983 | $ | 12.56 | 5 | $ | 3 | |||||||
The intrinsic value of options exercised under this plan during 2013 was $1 million. | |||||||||||||
Restricted Share Units | |||||||||||||
During 2013, we granted approximately 3.8 million RSUs to certain executives and employees under the 2011 Plan. Included in this amount was 3.5 million RSUs granted in connection with the 2013 Annual Grant with a grant date fair value of $13.91 and total compensation cost of $37 million, net of estimated forfeitures. 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, or other vesting schedule 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. | |||||||||||||
Also, in connection with the 2013 Annual Grant, we granted approximately 0.9 million market-based performance RSUs 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 (TSRs) of the Company's share price as compared to a set of peer companies. The Company estimates the fair value of the TSRs using a Monte Carlo valuation model, which includes a modifier for market results. The grant date fair value for these TSR awards was $17.01, 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. The assumptions, in addition to projections of market results, used in the Monte Carlo model are outlined in the following table: | |||||||||||||
Year ended December 31, 2013 | |||||||||||||
Weighted average grant date fair value per share | $ | 17.01 | |||||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 48.32 | % | |||||||||||
Expected lives (in years) | 2.75 | ||||||||||||
Risk free interest rate | 0.33 | % | |||||||||||
Expected dividend yield | — | % | |||||||||||
We have also granted performance-based RSUs (PRSUs) to certain executives of the Company under the 2011 Plan during 2012. The PRSUs granted, 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 December 31, 2013 we had approximately $74 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 TSRs and PRSUs. Under the terms of the RSU, TSR and PRSU award agreements, common shares underlying these awards are issued to the participant upon vesting of the award based on performance results. | |||||||||||||
A summary of changes in the RSUs, TSRs and PRSUs outstanding under the 2011 Plan during the year ended December 31, 2013 is presented below: | |||||||||||||
RSUs, TSRs and PRSUs | Wtd. Avg. grant | ||||||||||||
(in thousands) | date fair value | ||||||||||||
per share | |||||||||||||
Non-vested RSU, TSR and PRSU balance at January 1, 2013 | 4,520 | $ | 14.19 | ||||||||||
Granted | 4,710 | $ | 13.98 | ||||||||||
Issued | (1,145 | ) | $ | 13.59 | |||||||||
Terminated, canceled or expired | (794 | ) | $ | 15.34 | |||||||||
Non-vested RSU, TSR and PRSU balance at December 31, 2013 | 7,291 | $ | 14.04 | ||||||||||
The weighted average grant date fair value of RSUs, TSRs and PRSUs granted during 2013, 2012 and 2011 was $13.98, $14.71 and $12.78, respectively. The total intrinsic value of RSUs, TSRs and PRSUs issued under this plan during 2013 and 2012 was $16 million and $3 million, respectively. | |||||||||||||
On January 5, 2014, we granted share-based compensation under the 2011 Plan to certain executives and employees as part of our annual long-term incentive grants ("2014 Annual Grant"). We granted approximately 2 million stock options and 3.8 million RSUs. 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 $6.67 and the strike price for these awards is equal to the closing price on January 3, 2014, the last active trading day prior to the grant date, of $15.37. Total compensation costs associated with these awards of $56 million, net of estimated forfeitures, will be amortizes on a straight-line basis over a period of four years to additional paid-in capital. | |||||||||||||
Also, as part of the 2014 Annual Grant, we granted TSRs to certain executives. The target units awarded were approximately 1 million, 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 of the Company's share price as compared to a set of peer companies. The grant date fair value for these TSR awards is $15.94, as determined using the Monte-Carlo valuation model, and total compensation costs of $12 million, net of estimated forfeitures, will be amortized on a straight-line basis over a period of three years to additional paid-in capital. | |||||||||||||
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. | |||||||||||||
Option Exchange | |||||||||||||
On April 6, 2009, Freescale Ltd. granted options to purchase common shares of Freescale Ltd. under the 2006 MIP and the 2007 EIP by entering into new non-qualified option agreements with certain officers and employees. The Compensation and Leadership Committee of the Freescale Ltd. Board of Directors approved the form of the non-qualified option agreements in connection with an exchange of existing vested and unvested Class B Limited Partnership Interests in Freescale LP (“Class B Interests”) and options to purchase Freescale Ltd. common shares (both as described below), in each case, for new options to purchase Freescale Ltd. common shares (“Option Exchange”). Under the terms of each of the agreements, the new options have a term of ten years and vest and become exercisable in four equal installments on each of the first, second, third and fourth anniversaries of the grant date and are subject to the terms and conditions of the investors’ agreements. The exercise price for the new options granted under both agreements is equal to the fair value per share of Freescale Ltd. common shares on the date of grant. | |||||||||||||
Previously granted options and Class B Interests were exchanged for new options with a lower exercise price granted on a one-for-one basis for options and on a one-for-one hundred forty-four basis for Class B Interests (including the 1.2472% Class B-2008 Series Interest discussed later in this Note). Options to purchase an aggregate of approximately 3 million shares of Freescale Ltd. common shares, 67 thousand Class B Interests and the 1.2472% Class B-2008 Series Interest were exchanged for new options to purchase an aggregate of approximately 7 million common shares of Freescale Ltd. Options granted pursuant to the Option Exchange have an exercise price of $6.40 per share. In accordance with ASC Topic 718, the increase in the fair value of the Freescale Ltd. options that occurred in connection with the Option Exchange resulted in a modification charge of approximately $18 million, net of estimated forfeitures, which was recognized over the four year vesting period of the new options. | |||||||||||||
Non-qualified Options | |||||||||||||
In connection with the Merger, we adopted the 2006 MIP, which authorized share-based awards to be granted to management, key employees and directors for up to six million common shares. On February 4, 2009, the 2006 MIP was amended to allow up to approximately 11.7 million common shares to be issued under this plan. On October 28, 2009, the 2006 MIP was further amended to allow up to approximately 13.5 million common shares to be issued under the plan. As of December 31, 2013, the Company had issued approximately 1.6 million non-qualified options to purchase its common shares (“2006 Options”), which remain outstanding, with exercise prices ranging from $6.40 to $36.12 per share, to certain members of management pursuant to the 2006 MIP. (These options include those issued in connection with the Option Exchange.) The 2006 Options vest 25% on each of the first, second, third and fourth anniversaries of the date of grant and are subject to the terms and conditions of certain investor agreements. As of December 31, 2013 we had approximately $1 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 2006 Options was estimated on the date of grant using the Black-Scholes option pricing method. The assumptions used in the model are outlined in the following table: | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Weighted average grant date fair value per share | $ | 7.43 | |||||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 70 | % | |||||||||||
Expected lives (in years) | 6.25 | ||||||||||||
Risk free interest rate | 1.8 | % | |||||||||||
Expected dividend yield | — | % | |||||||||||
A summary of changes in the 2006 Options outstanding during the year ended December 31, 2013 is presented below: | |||||||||||||
Stock Options | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
(in thousands) | exercise price | Remaining | Intrinsic | ||||||||||
per share | Contractual | Value | |||||||||||
Term (Years) | (in millions) | ||||||||||||
Balance at January 1, 2013 | 6,746 | $ | 6.88 | 7 | $ | 30 | |||||||
Granted | — | $ | — | ||||||||||
Terminated, canceled or expired | (98 | ) | $ | 27.07 | |||||||||
Exercised | (5,096 | ) | $ | 6.51 | |||||||||
Balance at December 31, 2013 | 1,552 | $ | 6.85 | 6 | $ | 14 | |||||||
Exercisable options at December 31, 2013 | 1,458 | $ | 6.76 | 5 | $ | 14 | |||||||
The intrinsic value of options exercised under this plan during 2013, 2012 and 2011 was $44 million, $9 million and $1 million, respectively. | |||||||||||||
Under the 2006 MIP, we also issued fully vested options (“Rollover Options”) to purchase approximately 0.8 million shares of our common shares, in exchange for approximately 143 thousand fully vested Freescale Inc. options held by certain members of management that were not exercised before the closing of the Merger. The number and exercise price for the Rollover Options were determined based on a formula that maintained the intrinsic value of the Freescale Inc. options and maintained the fair value of the award before and after conversion. Using the closing price of Freescale Inc.’s common shares at the conclusion of the Merger, the average price for the Rollover Options was $22.24 per share. Except as noted for the number and exercise price, the Rollover Options generally maintained the same terms as the options that existed prior to the Merger. | |||||||||||||
The Rollover Options are considered temporary equity under the provisions of SEC Accounting Series Release No. 268, “Presentation in Financial Statements of ‘Redeemable Preferred Stocks’,” due to having a contingent cash-settlement feature upon the death or disability of the option holder and the awards having intrinsic value as of December 1, 2006 (the “Grant Date”). As such, the Grant Date intrinsic value of approximately $11 million recognized in additional paid-in capital should be considered temporary equity of the Company. | |||||||||||||
In June 2007, we adopted the 2007 EIP, which authorized the issuance of up to 0.9 million shares of our common shares in the form of share-based awards to key employees. On October 28, 2009, the 2007 EIP was amended to allow up to approximately 2.1 million shares of to be issued under the plan. As of December 31, 2013, 1 million non-qualified options to purchase our common shares (“2007 Options”), with exercise prices ranging from $6.40 to $36.12 per share remain outstanding. (These options include those issued in connection with the Option Exchange.) The 2007 Options vest 25% on each of the first, second, third and fourth anniversaries of the options’ grant date. As of December 31, 2013, we had less than $1 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 options granted was estimated on the grant date using the Black-Scholes option pricing method. The assumptions used in the model are outlined in the following table: | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Weighted average grant date fair value per share | $ | 7.43 | |||||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 70 | % | |||||||||||
Expected lives (in years) | 6.25 | ||||||||||||
Risk free interest rate | 1.8 | % | |||||||||||
Expected dividend yield | — | % | |||||||||||
A summary of changes in the 2007 Options outstanding during the year ended December 31, 2013 is presented below: | |||||||||||||
Stock | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
Options | exercise price | Remaining | Intrinsic | ||||||||||
(in thousands) | per share | Contractual | Value | ||||||||||
Term (Years) | (in millions) | ||||||||||||
Balance at January 1, 2013 | 1,222 | $ | 6.93 | 7 | $ | 37 | |||||||
Granted | — | $ | — | ||||||||||
Terminated, canceled or expired | (35 | ) | $ | 7.33 | |||||||||
Exercised | (321 | ) | $ | 6.46 | |||||||||
Balance at December 31, 2013 | 866 | $ | 7.08 | 6 | $ | 8 | |||||||
Exercisable options at December 31, 2013 | 858 | $ | 7.06 | 6 | $ | 8 | |||||||
The intrinsic value of options exercised under this plan during 2013, 2012 and 2011 was $3 million, $1 million and less than $1 million, respectively. | |||||||||||||
Class B Interests | |||||||||||||
In connection with the Merger, Freescale LP adopted an equity-based management compensation plan (“2006 Interest Plan”), under which 344 thousand unvested Class B Interests in Freescale LP were issued to thirteen individuals, thereby making those individuals parties to the Amended and Restated Agreement of Limited Partnership of Freescale LP (“Limited Partnership Agreement”). Under the provisions of the Limited Partnership Agreement, the Class B Interests will participate in any increase in the equity of the partnership subsequent to the initial contribution. The Class B Interests awards vest 25% on each of the first, second, third and fourth anniversaries of the date of grant. The Class B Interests are subject to the terms, conditions, and restrictions of the Limited Partnership Agreement and the Investors Agreement dated December 1, 2006. In 2009, approximately 6 thousand Class B Interests became vested upon the separation of two executives, and concurrently, approximately 3 thousand Class B Interests were forfeited. As of December 31, 2013, 130 thousand Class B Interests, held by former executives of Freescale Inc., remain outstanding. These Class B Interests exclude those canceled in exchange for new options to purchase Freescale Ltd. common shares in connection with the Option Exchange. | |||||||||||||
Restricted Stock Units and Deferred Stock Units | |||||||||||||
Under the terms of the 2006 MIP, RSUs were granted to certain members of management, key employees and directors. The grants are rights to receive our common shares on a one-for-one basis and vest 25% on each of the first, second, third and fourth anniversaries of the grant date and are not entitled to dividends or voting rights, if any, until they are vested. The fair value of the RSU awards is being recognized on a straight-line basis over the employee service period. | |||||||||||||
During 2009, we also granted performance-based deferred stock units (DSUs) to certain executives of Freescale Inc. under the 2006 MIP. The number of DSUs that could be earned pursuant to such awards range from zero to twice the number of target DSUs established at the grant date based upon the achievement of EBITDA and revenue growth levels measured against a group of peer companies over a three-year period from January 1, 2009. As of February 1, 2012, these performance-based DSUs were canceled because the minimum performance conditions were not achieved. | |||||||||||||
A summary of changes in RSUs and DSUs outstanding during the year ended December 31, 2013 is presented below: | |||||||||||||
RSUs and DSUs | Wtd. Avg. grant | ||||||||||||
(in thousands) | date fair value | ||||||||||||
per share | |||||||||||||
Non-vested RSU and DSU balance at January 1, 2013 | 99 | $ | 11.63 | ||||||||||
Granted | — | $ | — | ||||||||||
Vested | 14 | $ | 10.48 | ||||||||||
Issued | (61 | ) | $ | 24.79 | |||||||||
Terminated, canceled or expired | (30 | ) | $ | 12.69 | |||||||||
Non-vested RSU and DSU balance at December 31, 2013 | 22 | $ | 10.59 | ||||||||||
The weighted average grant date fair value of RSUs and DSUs granted during 2011 was $12.69. The total intrinsic value of RSUs and DSUs issued under this plan during 2013, 2012 and 2011 was $1 million, $4 million and $1 million, respectively. | |||||||||||||
Under the terms of the RSU award agreements, common shares are not issued to the participant upon vesting of the RSU. Shares are issued upon the earlier of: (i) the participant’s termination of employment, (ii) the participant’s death, (iii) the participant’s disability, (iv) a change of control, or (v) the seventh anniversary of the date of grant. Vested RSUs are considered outstanding until shares have been issued or the awards have been canceled. | |||||||||||||
As of December 31, 2013, we had less than $1 million in unamortized expense related to RSUs and DSUs issued under the 2006 MIP, net of expected forfeitures, which is being amortized on a straight-line basis over a period of two to 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 1.6 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. The second offering period for ESPP began on July 1, 2013 and ended on December 31, 2013. On January 3, 2014, approximately 1 million common shares of Freescale were issued to participating employees under the ESPP at a discounted price of $13.64 per share. During both 2013 and 2012, we recognized $4 million in compensation costs related to the 15% discount offered under this plan. | |||||||||||||
Defined Contribution Plans | |||||||||||||
We have a retirement savings plan covering substantially all eligible U.S. employees (the “Plan”). The Plan provides for employer matching contributions which may be made in amounts up to a 100% match of each participant’s pre-tax and/or post-tax contributions to the Plan not to exceed 5% of the participant’s eligible earnings. Under our defined contribution plans, matching contributions totaled $27 million in 2013, $29 million in 2012 and $31 million in 2011. | |||||||||||||
Incentive Plans | |||||||||||||
We are parties to an incentive awards program under which the Company has the authority to grant cash bonuses to employees. In conjunction with this awards program, Freescale Inc. has established a bonus plan for the first and second halves of each year. Freescale Inc. plans to allocate an incentive pool percentage to each designated employee for each semi-annual period during the calendar year. The employee’s incentive award then will be determined by us based on the employee’s allocated portion of the incentive pool, our performance against pre-established objectives and the employee’s individual performance, subject to adjustment at our sole discretion. We recognized expense of $51 million in 2013 and $59 million in 2011 related to this program. No expense was recorded in 2012, as the company did not achieve the pre-established performance objectives under the bonus plan. | |||||||||||||
Pension and Post-retirement Benefit Plans | |||||||||||||
In accordance with the provisions of ASC Topic 715, “Compensation – Retirement Benefits,” we recognize the funded status of our defined benefit post-retirement plans on our accompanying Consolidated Balance Sheets, and changes in the funded status are reflected in comprehensive earnings in the accompanying Consolidated Statements of Comprehensive Loss. The measurement date for all U.S. and non-U.S. plans was December 31st for 2013 and 2012. | |||||||||||||
Pension Benefits | |||||||||||||
At the Distribution Date, the pension benefits for all active U.S. employees were frozen. Obligations related to retired and other vested participants as of the Distribution Date remained the responsibility of Motorola. We did not adopt a new U.S. pension plan. Most of Freescale Inc.’s non-U.S. retirement benefit plans were also frozen as of the Distribution, with respect to our employees, with the obligation for retirees and vested participants remaining the responsibility of Motorola, and Freescale Inc. no longer participating in the Motorola plans. We continue to offer defined benefit plans to approximately 2,700 non-U.S. employees. | |||||||||||||
Net periodic benefit cost for pension plans was $13 million, $11 million and $11 million in 2013, 2012 and 2011, respectively. Our contributions to these plans aggregated to $2 million, $3 million and $5 million in 2013, 2012 and 2011, respectively. The estimated amount of net actuarial loss included in accumulated other comprehensive earnings as of December 31, 2013, that is expected to be amortized into net periodic benefit cost over the next fiscal year is $2 million for the non-U.S. defined benefit plans. | |||||||||||||
The weighted average assumptions for these benefit plans as of December 31, 2013 and 2012 were as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Discount rates | 3 | % | 3 | % | |||||||||
Expected return on plan assets | 3.4 | % | 3.4 | % | |||||||||
Rate of compensation increase | 3.2 | % | 3 | % | |||||||||
The overall expected long-term rate of return on plan assets is based on expected returns on individual asset types included in asset portfolios provided by pension plan fund managers, as well as expected interest on insurance contracts purchased to fund pension benefits. | |||||||||||||
The accumulated benefit obligation (ABO) for all defined benefit plans was $142 million and $139 million at December 31, 2013 and 2012, respectively. The projected benefit obligation of these plans was $158 million and $155 million at December 31, 2013 and 2012, respectively. At December 31, 2013 and 2012, plan assets of approximately $53 million and $55 million, respectively, were principally invested in equity, debt and guaranteed investment securities. | |||||||||||||
Plan Assets Underlying Pension Plans | |||||||||||||
The pension plans for certain of our foreign subsidiaries have underlying assets, while pension plans of other foreign subsidiaries are unfunded. Our overall investment strategy with regard to these pension assets is to achieve a wide diversification of asset types, fund strategies and fund managers with resulting future cash flows associated with such investments sufficient to fund anticipated future pension payments. The target allocations for plan assets are 30% equity securities and 70% fixed income securities with minimal cash investment, although the actual plan asset allocations may be within a specified range of these targets. Equity securities primarily include investments in U.S. and international large-cap and mid-cap companies. Fixed income securities include international government securities, corporate bonds from diversified industries, municipal bonds, and U.S. Treasury securities. Cash investments primarily include cash balances and investments in time deposits. The actual asset allocations are reviewed and rebalanced on a periodic basis to maintain the target allocations. The portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance. | |||||||||||||
The fair values of our pension plan assets at December 31, 2013 and 2012 by asset category, utilizing the fair value hierarchy discussed in Note 3, “Fair Value Measurements,” are as follows: | |||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | ||||||||||||
As of December 31, 2013 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Common collective trust | $ | 39 | $ | — | $ | 39 | |||||||
Insurance contracts | 14 | — | 14 | ||||||||||
Total assets | $ | 53 | $ | — | $ | 53 | |||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | ||||||||||||
As of December 31, 2012 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Common collective trust | $ | 41 | $ | — | $ | 41 | |||||||
Insurance contracts | 14 | — | 14 | ||||||||||
Total assets | $ | 55 | $ | — | $ | 55 | |||||||
Our interest in the common collective trust investments are managed by one custodian. Consistent with our investment strategy, the custodian has invested the assets across a widely diversified portfolio of U.S. and international equity and fixed income securities. Fair values of each security within the collective trust as of December 31, 2013 and 2012 were obtained from the custodian and are based on quoted market prices of individual investments; however, since the fund itself does not have immediate liquidity or a quoted market price, these assets are considered Level 2. | |||||||||||||
Our insurance contract pension assets represent a claim on a policy value which are independent from the value of investments underlying it, as the insurer is obliged to guarantee this amount regardless of (i) how the amount is invested, (ii) the value of the insurer’s investment at a point in time and (iii) the future fluctuations in value of the insurer’s assets underlying the policies. This guaranty is demanded by the German Federal Insurance Board, and any insurer must accept and declare this guaranty in its business terms, otherwise their terms are not approved. The value of the insurance contracts is considered Level 2. There were no Level 3 instruments at December 31, 2013 or 2012. | |||||||||||||
Post-retirement Health Care Benefits | |||||||||||||
Certain retiree benefits are available to eligible U.S. employees meeting certain age and service requirements upon termination of employment through the Motorola Post-retirement Healthcare Plan ("Post-retirement Healthcare Plan"). At the Distribution Date, Freescale Inc. assumed responsibility for the retiree medical benefit obligation for all eligible retired participants, active vested participants, and active participants who vested within the three year period following the Distribution. | |||||||||||||
The components of the expense we incurred under the Post-retirement Healthcare Plan were as follows: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | |||||||
Interest cost | 6 | 7 | 9 | ||||||||||
Net amortization of gains | (1 | ) | (1 | ) | — | ||||||||
One-time deviation | — | — | (1 | ) | |||||||||
Post-retirement expense | $ | 6 | $ | 7 | $ | 9 | |||||||
The measurement date for the valuation of our obligations and assets for the Post-retirement Healthcare Plan was December 31st for 2013 and 2012. Our obligation consists of an ABO and represents the actuarial present value of benefits payable to plan participants for services rendered at the valuation date. Our obligation to the Post-retirement Healthcare Plan is as follows: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Beginning of year | $ | 166 | $ | 158 | $ | 177 | |||||||
Service cost | 1 | 1 | 1 | ||||||||||
Interest cost | 6 | 7 | 9 | ||||||||||
Actuarial loss (gain) | (45 | ) | 10 | (18 | ) | ||||||||
Benefits paid, net | (6 | ) | (6 | ) | (10 | ) | |||||||
Prior service cost | — | (5 | ) | — | |||||||||
Other | — | 1 | — | ||||||||||
One-time deviation | — | — | (1 | ) | |||||||||
Total benefit obligation | $ | 122 | $ | 166 | $ | 158 | |||||||
Benefit payments, which reflect expected future service, are estimated to be $5 million in 2014, $7 million in 2015, $8 million in 2016, $9 million in 2017, $10 million in 2018 and $51 million for the next five years thereafter. The estimated amount of net actuarial gain and unrecognized prior service credit included in accumulated other comprehensive earnings as of December 31, 2013, that are expected to be amortized into net periodic benefit cost over the next fiscal year is $4 million for U.S retiree health care plan. | |||||||||||||
The weighted average assumptions for these retiree medical benefits as of December 31, 2013 and 2012 were as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Discount rate | 4.75 | % | 3.75 | % | |||||||||
Assumed health care trend rate for next year | 6.72 | % | 7.24 | % | |||||||||
Assumed ultimate health care trend rate | 4.5 | % | 5 | % | |||||||||
Year that the rate reaches the ultimate trend rate | 2026 | 2020 | |||||||||||
The assumed discount rate is based on market rates as of the measurement date and is utilized in calculating the actuarial present value of our obligation, periodic expense and health care cost trend rate for the Post-retirement Healthcare Plan. | |||||||||||||
The assumed health care cost trend rate represents our estimate of the annual rates of change in the costs of the health care benefits currently provided by the Post-retirement Healthcare Plan. The estimated effect of a 1% increase in assumed health care cost trends would increase 2014 costs by less than $1 million and increase the benefit obligation at December 31, 2013 by $11 million. The estimated effect of a 1% decrease in assumed health care cost trends would decrease 2014 costs by less than $1 million and decrease the benefit obligation at December 31, 2013 by $9 million. | |||||||||||||
The reconciliation of the funded status of the Post-retirement Healthcare Plan is as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Benefit obligation | $ | (122 | ) | $ | (166 | ) | |||||||
Fair value of plan assets | — | — | |||||||||||
Funded status | (122 | ) | (166 | ) | |||||||||
Unrecognized net gain | (67 | ) | (23 | ) | |||||||||
Unrecognized prior service cost | (4 | ) | (5 | ) | |||||||||
Accrued cost | $ | (193 | ) | $ | (194 | ) |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The Company is a Bermuda exempted company. Bermuda does not impose a corporate income tax. Our operations are conducted through our various subsidiaries in a number of countries throughout the world. Consequently, income taxes have been provided based on the laws and rates in effect in the countries in which operations are conducted or in which we or our subsidiaries are considered resident for income tax purposes. | ||||||||||||
Components of loss before income taxes are as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Bermuda | $ | (8 | ) | $ | (8 | ) | $ | (13 | ) | |||
United States | (388 | ) | (301 | ) | (536 | ) | ||||||
Foreign | 228 | 209 | 167 | |||||||||
Loss before income taxes | $ | (168 | ) | $ | (100 | ) | $ | (382 | ) | |||
Components of income tax expense are as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Current: | ||||||||||||
United States | $ | — | $ | — | $ | — | ||||||
Foreign | 22 | 23 | 19 | |||||||||
Total current | $ | 22 | $ | 23 | $ | 19 | ||||||
Deferred: | ||||||||||||
United States | $ | 44 | $ | 11 | $ | 5 | ||||||
Foreign | 14 | 14 | 8 | |||||||||
Total deferred | $ | 58 | $ | 25 | $ | 13 | ||||||
Non-current: | ||||||||||||
United States | $ | (44 | ) | $ | (10 | ) | $ | — | ||||
Foreign | 4 | (36 | ) | (4 | ) | |||||||
Total non-current | $ | (40 | ) | $ | (46 | ) | $ | (4 | ) | |||
Total expense for income taxes | $ | 40 | $ | 2 | $ | 28 | ||||||
During 2013, cash paid for taxes was $5 million, net of refunds including a withholding tax refund of $13 million. Cash paid for taxes was $18 million and $25 million for 2012 and 2011, respectively. | ||||||||||||
ASC Topic 740, “Income Taxes” (“ASC Topic 740”) requires that deferred tax assets be reduced by a valuation allowance if, based on all available evidence, it is considered more-likely-than-not that some portion or all of the recorded deferred tax assets will not be realized in a future period. We assess available positive and negative evidence to estimate if sufficient taxable income will be generated to use existing deferred tax assets. A significant piece of objective negative evidence evaluated includes the absence of U.S. operational profitability and recent cumulative losses. As we have incurred cumulative losses in the United States, the Company recorded a valuation allowance on substantially all of its U.S. net deferred tax assets. Due to the decrease in domestic cumulative losses over the past three years, management believes that sufficient positive evidence could become available in the future to reach a conclusion that the U.S. valuation allowance will no longer be needed, in whole or in part. Acceleration of improved operating results or significant taxable income from specific non-recurring transactions could further impact this assessment. The likelihood of realizing the benefit of deferred tax assets and the related need for a valuation allowance is assessed on an ongoing basis, and at this time, the Company is not able to make a reasonable estimate of the time of reversal or the range of impact on the effective tax rate related to these items. In addition, we recorded valuation allowances in certain foreign jurisdictions after considering all positive and negative factors as to the recoverability of these assets. | ||||||||||||
The provision for income taxes differed from the amount computed by applying the Bermuda statutory rate of 0% to our loss before tax as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Provision at Bermuda Statutory rate of zero | $ | — | $ | — | $ | — | ||||||
Taxes on U.S. and foreign (losses) earnings which are different than the Bermuda rate | (22 | ) | (71 | ) | (136 | ) | ||||||
Valuation allowance on deferred taxes | 153 | 131 | 207 | |||||||||
Research credits | (32 | ) | (12 | ) | (32 | ) | ||||||
Foreign capital incentive | (12 | ) | (7 | ) | (10 | ) | ||||||
Other activity in unrecognized tax benefits | (45 | ) | (44 | ) | (6 | ) | ||||||
Other | (2 | ) | 5 | 5 | ||||||||
Total expense for income taxes | $ | 40 | $ | 2 | $ | 28 | ||||||
A portion of our operations are eligible for a reduced or zero tax rate under various tax holidays which expire in whole or in part through 2020. The income tax benefits attributable to the tax status of the subsidiaries with tax holidays are estimated to be approximately $2 million, $2 million and $3 million for 2013, 2012 and 2011, respectively. The benefit of the tax holidays on diluted net loss per share was $0.01 in each of 2013, 2012 and 2011. | ||||||||||||
Significant components of deferred tax assets (liabilities) are as follows: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Tax carryforwards | $ | 778 | $ | 703 | ||||||||
Accrued interest | 461 | 308 | ||||||||||
Depreciation | 180 | 225 | ||||||||||
Employee benefits | 86 | 102 | ||||||||||
Other capitalized items | 76 | 84 | ||||||||||
Accrued intercompany expenses | 33 | 66 | ||||||||||
Inventory | 31 | 41 | ||||||||||
Sales, bad debt and warranty reserves | 25 | 20 | ||||||||||
Share-based compensation | 23 | 44 | ||||||||||
Other, net | 17 | 23 | ||||||||||
Environmental reserves | 16 | 16 | ||||||||||
Foreign capital incentive | 13 | 25 | ||||||||||
Investments | 10 | 10 | ||||||||||
Deferred revenue | (1 | ) | 34 | |||||||||
Debt issuance costs | (14 | ) | 2 | |||||||||
Undistributed foreign earnings | (366 | ) | (406 | ) | ||||||||
Valuation allowance | (1,288 | ) | (1,156 | ) | ||||||||
Net deferred tax assets | $ | 80 | $ | 141 | ||||||||
We periodically repatriate earnings to the U.S. from our foreign subsidiaries to service debt obligations and other liquidity needs. Accordingly, we have provided additional deferred taxes for the anticipated repatriation of earnings of our foreign subsidiaries where our management has determined that the foreign subsidiaries’ earnings are not indefinitely reinvested. For foreign subsidiaries whose earnings are indefinitely reinvested, no provision for income taxes has been provided. It is not practicable to reasonably estimate the amount of additional income tax liabilities that may be payable should these earnings be distributed in the future. | ||||||||||||
Gross deferred tax assets were $1,888 million and $1,842 million at December 31, 2013 and 2012, respectively. Gross deferred tax liabilities were $520 million and $545 million at December 31, 2013 and 2012, respectively. The Company’s deferred tax positions are reflected in the following captions on the accompanying Consolidated Balance Sheets: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Other current assets | $ | 54 | $ | 86 | ||||||||
Other assets | 92 | 101 | ||||||||||
Accrued liabilities | (1 | ) | (3 | ) | ||||||||
Other liabilities | (65 | ) | (43 | ) | ||||||||
Net deferred tax assets | $ | 80 | $ | 141 | ||||||||
At December 31, 2013 and 2012, we had valuation allowances of $1,230 million and $1,089 million, respectively, against certain of our deferred tax assets in the United States, and valuation allowances of $58 million and $67 million, respectively, against net deferred tax assets of certain foreign subsidiaries, respectively, to reflect the deferred tax assets at the net amounts that are more-likely-than-not to be realized. Valuation allowances have been recorded on substantially all our U.S. deferred tax assets, as we have incurred cumulative losses in the United States. We have not recognized all of the tax benefits for these losses as we are precluded from considering the impact of future forecasted earnings pursuant to the provisions of ASC Topic 740 in assessing whether it is more-likely-than-not that all or a portion of our deferred tax assets may be recoverable. The Company computes cumulative losses for these purposes by adjusting U.S. pre-tax results (excluding the cumulative effects of accounting method changes and including discontinued operations and other “non-recurring” items such as restructuring or impairment charges) for permanent items. During 2013, we recorded a net increase in our valuation allowance of $132 million. This net increase consisted of a $141 million increase in our U.S. valuation allowance, partially offset by a $9 million decrease in our overall foreign valuation allowance. The increase in the U.S. valuation allowance is attributable to an overall increase in U.S. net deferred tax assets, $154 million of which was recorded through deferred tax expense and a $13 million benefit was recorded in other comprehensive earnings. The decrease in the foreign valuation allowance was a result of a $1 million deferred tax benefit recorded through deferred tax expense and an $8 million deferred tax benefit recorded in other comprehensive earnings. | ||||||||||||
At December 31, 2013, we had (i) U.S. federal net operating losses of $421 million, which expire in the years 2016 through 2033, (ii) state net operating losses of $357 million, which expire in the years 2015 through 2033, and (iii) foreign capital losses of $48 million, which do not expire, and foreign net operating losses of $130 million, which expire starting in 2014. We had (i) U.S. federal research credits of $271 million, which expire in the years 2015 through 2033, (ii) state research credits of $109 million, which expire in the years 2018 through 2033, and (iii) foreign research credits of $10 million, which expire in the years 2027 through 2033. We also had U.S. foreign tax credits of $273 million, which expire in the years 2014 through 2023. If certain substantial changes in the Company’s ownership occur, there would be an annual limitation on the amount of U.S. federal carryforwards that can be utilized. | ||||||||||||
We account for uncertainty in tax positions in accordance with ASC Topic 740, which prescribes a recognition threshold and measurement criteria for financial statement recognition of a tax position taken or expected to be taken in a tax return. ASC Topic 740 requires us to recognize in our financial statements, the impact of a tax position, if that position is more-likely-than-not of being sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The interpretation also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the total amount of unrecognized tax benefits was as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Balance as of beginning of year | $ | 168 | $ | 207 | $ | 210 | ||||||
Tax positions related to the current year: | ||||||||||||
Additions | 13 | 2 | 7 | |||||||||
Reductions | — | — | — | |||||||||
Tax positions related to prior years: | ||||||||||||
Additions | 1 | — | — | |||||||||
Reductions | (3 | ) | (22 | ) | (6 | ) | ||||||
Foreign currency translation adjustments | — | (1 | ) | (1 | ) | |||||||
Settlements | (1 | ) | (1 | ) | — | |||||||
Lapses in statutes of limitations | (46 | ) | (17 | ) | (3 | ) | ||||||
Balance as of end of year | $ | 132 | $ | 168 | $ | 207 | ||||||
As of December 31, 2013, 2012 and 2011, unrecognized tax benefits were $132 million, $168 million and $207 million, respectively. During 2013, the liability for unrecognized tax benefits decreased by $46 million due to statue lapses of which $44 million did not impact our effective tax rate, as the benefits were offset by valuation allowances on our deferred tax assets. The total liability for unrecognized tax benefits at December 31, 2013, 2012 and 2011, which includes interest and penalties, was $138 million, $173 million and $217 million, respectively. The amount of tax benefits included in this total liability which, if recognized, would affect our effective tax rate is $28 million, $28 million and $61 million as of December 31, 2013, 2012 and 2011, respectively. The remaining portion of the total liability in each year represents tax benefits that were offset by valuation allowances on our deferred tax assets and would not have an impact to the effective tax rate. | ||||||||||||
We recognized accrued interest and penalties associated with uncertain tax positions as part of the tax provision and these amounts are included in income tax expense. During 2013, our reserves for interest and penalties did not change. During 2012 and 2011, we released (accrued) $4 million and $(2) million, respectively, of reserves for interest and penalties. As of both December 31, 2013 and 2012, we had accrued interest and penalties of $6 million. | ||||||||||||
We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. Our income tax returns for the 2004 through 2012 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 negative impact on our financial condition or results of operations. It is reasonably possible that our existing liabilities for unrecognized tax benefits may increase or decrease in the next twelve months primarily due to the progression of open audits or the expiration of statutes of limitation. The Company does not expect the liability for unrecognized tax benefits to decrease substantially during the next twelve months. With few exceptions, we are not subject to tax examinations by tax authorities for years before 2004. | ||||||||||||
On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (the “ATR Act”) which included an extension of the federal research and development credit retroactively to 2012 and prospectively through 2013. The effects of the ATR Act were recognized in 2013. The renewal of this credit did not change the Company’s effective tax rate because the Company has incurred cumulative domestic losses, and has recorded valuation allowances against substantially all its domestic deferred tax assets. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Leases | |
We own most of our major facilities; however, we do lease certain office and warehouse space, and information technology and other equipment under principally non-cancellable operating leases expiring through 2022. Rental expense, net of sublease income, for the years ended December 31, 2013, 2012, and 2011 was $34 million, $36 million and $34 million, respectively. Future minimum lease payments, net of minimum sublease rentals, of such operating leases for each of the five years subsequent to December 31, 2013 are $33 million, $22 million, $14 million, $12 million and $7 million, respectively, and $2 million thereafter. | |
In 2011, we executed the sale and partial leaseback of our facilities in Tempe, Arizona and East Kilbride, Scotland. We received $57 million in cash proceeds for the sale of these properties resulting in a $17 million gain, of which a substantial portion was deferred. This deferred gain is being amortized in proportion to our gross rental expense over the term of our operating leases at these properties, in accordance with ASC Subtopic 840-40, “Sale-Leaseback Transactions.” During 2013, 2012 and 2011, we recognized $2 million, $3 million and $1 million, respectively, of this deferred gain as a reduction of our gross rental expense. | |
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 $103 million as of December 31, 2013. | |
We have multi-year commitments under various software, service, supply and other contracts requiring payments for each of the four years subsequent to December 31, 2013 of $97 million, $66 million, $39 million and $19 million, respectively. Currently, there are no payments related to these items scheduled beyond 2017. | |
Contingencies | |
Environmental | |
Under the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended (CERCLA, or Superfund), and equivalent state law, Motorola has been designated as a Potentially Responsible Party by the United States Environmental Protection Agency with respect to certain waste sites with which the Company’s operations may have had direct or indirect involvement. Such designations are made regardless of the extent of Motorola’s involvement. Pursuant to the master separation and distribution agreement entered into in connection with our spin-off from Motorola, Freescale Inc. has indemnified Motorola for these liabilities going forward. These claims are in various stages of administrative or judicial proceedings. They include demands for recovery of past governmental costs and for future investigations or remedial actions. The remedial efforts include environmental cleanup costs and communication programs. In many cases, the dollar amounts of the claims have not been specified and have been asserted against a number of other entities for the same cost recovery or other relief as was asserted against Freescale Inc. We accrue costs associated with environmental matters when they become probable and reasonably estimable by recording the future estimated cash flows associated with such costs on a discounted basis, as the amount and timing of cash payments become fixed or readily determinable, for the estimated remediation periods, ranging from six years to over 50 years. | |
Due to the uncertain nature, the actual costs that will be incurred could differ significantly from the amounts accrued. As of December 31, 2013 and 2012, the undiscounted future cash flows are estimated at $82 million and $83 million, respectively. The expected payments for 2014 through 2018 are $5 million, $5 million, $5 million, $4 million and $3 million, respectively, with remaining expected payments of $60 million anticipated thereafter. Accruals at December 31, 2013 and 2012 were $44 million (utilizing a discount rate of 4.7%) and $44 million (utilizing a discount rate of 4.4%), respectively, the majority of which are included in other liabilities on the accompanying Consolidated Balance Sheets, with related charges to operating earnings of $2 million, $3 million and $2 million in 2013, 2012, and 2011, respectively. These amounts represent only our estimated share of costs incurred in environmental cleanup sites without considering recovery of costs from any other party or insurer, since in most cases Potentially Responsible Parties other than us may exist and be held responsible. | |
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 in August 2013 and Freescale Inc. made a cash payment to Tessera, which settled 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 year ended December 31, 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. | |
Other Contingencies | |
In the ordinary course of business, we regularly execute contracts that contain customary indemnification provisions. Additionally, from time to time we execute contracts considered outside the ordinary course of business, which may contain broader indemnification provisions, and other reimbursement obligations for costs related to epidemic failure of a Freescale product, late delivery, or breach of confidentiality. Examples of these types of agreements include customer supply contracts, business divestitures, business acquisitions, settlement agreements and third-party performance guarantees. In each of these circumstances, payment by us is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow us to challenge the other party’s claims. Further, our obligations under these agreements may be limited in terms of duration and/or amounts not in excess of the contract value, and in some instances we may have recourse against third parties for certain payments made by us. | |
Historically, we have not made significant payments for indemnification provisions contained in these agreements. During 2012, we recorded a benefit of $4 million to reorganization of business and other for the expiration of indemnification obligations under a contract previously executed outside the ordinary course of business. At December 31, 2013, we have no accruals related to known estimated indemnification obligations. We believe that if we were to incur additional losses with respect to any unknown matters at December 31, 2013, such losses would not have a material negative impact on our financial position, results of operations or cash flows. |
Asset_Impairment_Charges
Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2013 | |
Asset Impairment Charges [Abstract] | ' |
Asset Impairment Charges | ' |
Asset Impairment Charges | |
We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We evaluate the recoverability of long-lived assets to be held and used by comparing the carrying value of the assets to the estimated future net undiscounted cash flows expected to be generated by the asset group. An asset is considered impaired if the carrying value of the asset group is greater than its estimated future net undiscounted cash flows. | |
We measure the impairment to be recognized from assets to be held and used as the amount by which the carrying value of the asset group exceeds the fair value of the assets. The fair value of the asset is the quoted market price, if available, or discounted cash flows using a discount rate commensurate with the risk inherent in our current business model for the specific asset group being valued. To compute the estimated expected future cash flows on a discounted and undiscounted basis, we group assets at the lowest level for which there are identifiable cash flows. We base our estimates of future cash flows on historical and current financial results and management’s best estimates of future operating trends. We project cash inflows and outflows until the operations will cease or significant capital re-investment would be required to continue operations, whichever is shorter. In evaluating assets held for use for impairment, we also consider whether the events that triggered the impairment analysis give rise to a change in the estimated useful lives of the associated assets. Asset useful lives are adjusted when appropriate. | |
Asset impairment charges of $49 million have been included in reorganization of business and other in the accompanying Consolidated Statement of Operations for the year ended December 31, 2011 in accordance with ASC Topic 360 “Impairment and Disposal of Long Lived Assets” (“ASC Topic 360”). These charges related primarily to our former manufacturing facility in Sendai, Japan that suffered extensive infrastructure, equipment and inventory damage as the result of the March 2011 earthquake. (Refer to Note 10, “Reorganization of Business and Other,” for further details regarding these charges.) |
Reorganization_of_Business_and
Reorganization of Business and Other | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Reorganization of Business and Other | ' | ||||||||||||||||||||
Reorganization of Business and Other | |||||||||||||||||||||
Year Ended December 31, 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. During 2013 and 2012, we recorded a total of $31 million and $52 million, respectively, in 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, as further described below. | |||||||||||||||||||||
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 December 31, 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 | 31-Dec-13 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 6 | $ | 3 | $ | — | $ | (4 | ) | $ | 5 | ||||||||||
Selling, general and administrative | 11 | 1 | — | (10 | ) | 2 | |||||||||||||||
Research and development | 13 | — | — | (11 | ) | 2 | |||||||||||||||
Total | $ | 30 | $ | 4 | $ | — | $ | (25 | ) | $ | 9 | ||||||||||
Related headcount | 270 | 120 | — | (220 | ) | 170 | |||||||||||||||
Exit and Other Costs | $ | 2 | $ | 28 | $ | (2 | ) | $ | (20 | ) | $ | 8 | |||||||||
We incurred $4 million of additional employee separation charges related to the continued implementation of the strategic plan initiated during the 2012. The $25 million used reflects cash payments made to employees separated as part of the plan during 2013. The accrual of $9 million at December 31, 2013 reflects the estimated liability to be paid to the remaining 170 employees to be separated through the first quarter of 2015 based on current exchange rates. | |||||||||||||||||||||
Additionally, we recorded $28 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 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. | |||||||||||||||||||||
Other Charges | |||||||||||||||||||||
During 2013, we incurred a $4 million charge primarily related to the write-down of the net book value of certain manufacturing assets to their fair market values less the expected cost to sell in association with the classification of the assets as available for sale as of December 31, 2013 and also included a contract termination charge associated with similar manufacturing assets under a previous operating lease. These assets are no longer deemed necessary due to the strategic decision to eliminate certain processes for some of our next generation products. | |||||||||||||||||||||
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"). Since the inception of the plan, we have recorded $244 million in charges to reorganization of business and other. 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 December 31, 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 | 31-Dec-13 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 77 | $ | — | $ | (1 | ) | $ | (59 | ) | $ | 17 | |||||||||
Selling, general and administrative | 2 | — | — | — | 2 | ||||||||||||||||
Research and development | 2 | — | — | — | 2 | ||||||||||||||||
Total | $ | 81 | $ | — | $ | (1 | ) | $ | (59 | ) | $ | 21 | |||||||||
Related headcount | 520 | — | — | (490 | ) | 30 | |||||||||||||||
The $59 million used reflects cash payments made to employees separated as part of the Reorganization of Business Program during 2013. We adjusted our anticipated future severance payments by $1 million to incorporate the currency impact in the above presentation, which reflects the strengthening of the U.S. dollar against the Euro during the first half of 2013. The accrual of $21 million at December 31, 2013 reflects the estimated liability to be paid through 2014 (i) to the remaining 30 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 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 $6 million charge related to on-going closure and decommissioning costs. We also recorded a benefit of $5 million related to the sale of a portion of our former manufacturing facility located in Sendai, Japan, offset by a $1 million charge related to demolition costs incurred in preparation of the remaining site for sale. | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Chief Executive Leadership Transition | |||||||||||||||||||||
During the year ended 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 of Directors and CEO. | |||||||||||||||||||||
2012 Strategic Realignment | |||||||||||||||||||||
The following table displays a roll-forward from January 1, 2012 to December 31, 2012 of the employee separation and exit cost accruals established related to the 2012 Strategic Realignment: | |||||||||||||||||||||
(in millions, except headcount) | Accruals at | Charges | Adjustments | Used | Accruals at | ||||||||||||||||
January 1, 2012 | 31-Dec-12 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | — | $ | 8 | $ | — | $ | (2 | ) | $ | 6 | ||||||||||
Selling, general and administrative | — | 14 | — | (3 | ) | 11 | |||||||||||||||
Research and development | — | 16 | — | (3 | ) | 13 | |||||||||||||||
Total | $ | — | $ | 38 | $ | — | $ | (8 | ) | $ | 30 | ||||||||||
Related headcount | — | 660 | — | (390 | ) | 270 | |||||||||||||||
Exit and Other Costs | $ | — | 3 | — | (1 | ) | $ | 2 | |||||||||||||
In 2012, we recorded $38 million in cash charges for severance costs of which $8 million were paid to employees separated as part of the 2012 Strategic Realignment. Additionally, we recorded $3 million in exit and other costs primarily related to additional compensation for employees who were deemed crucial to the implementation of the plan in accordance with ASC Topic 420. During 2012, we paid $1 million of these exit costs. | |||||||||||||||||||||
Accelerated Amortization Charge | |||||||||||||||||||||
In connection with the re-allocation of research and development resources under the 2012 Strategic Realignment, we stopped pursuing certain products and technologies. As a result and in accordance with ASC Topic 360, we recorded a charge of $11 million to reorganization of business and other based on the reassessment of useful lives and related acceleration of the remaining amortization for certain of our purchased licenses which had no future benefit due to being directly related to programs we canceled. (Refer to Note 2, “Other Financial Data,” for further details regarding this charge.) | |||||||||||||||||||||
Sendai, Japan Fabrication Facility and Design Center | |||||||||||||||||||||
In March 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 2012, we recorded a $90 million benefit for business interruption insurance recoveries, which was partially offset by $9 million of expenses related to on-going closure and other costs associated with the dissolution of the Sendai, Japan entity. We also recorded a benefit of $9 million related to proceeds received in connection with the sale of the Sendai, Japan design center. Additionally in 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 December 31, 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 | 31-Dec-12 | ||||||||||||||||||||
Employee Separation Costs | |||||||||||||||||||||
Supply chain | $ | 106 | $ | — | $ | 1 | $ | (30 | ) | $ | 77 | ||||||||||
Selling, general and administrative | 8 | — | (6 | ) | — | 2 | |||||||||||||||
Research and development | 14 | — | (12 | ) | — | 2 | |||||||||||||||
Total | $ | 128 | $ | — | $ | (17 | ) | $ | (30 | ) | $ | 81 | |||||||||
Related headcount | 720 | — | — | (200 | ) | 520 | |||||||||||||||
Exit and Other Costs | $ | 6 | $ | 2 | $ | (2 | ) | $ | (6 | ) | $ | — | |||||||||
The $30 million used reflects cash payments made to employees separated as part of the Reorganization of Business Program in 2012. We adjusted our anticipated future severance payments by $14 million to incorporate the 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, we reversed $3 million of accruals related to the finalization of the closure of the Sendai, Japan manufacturing facility. During 2012, we also (i) recorded and paid $2 million in exit costs related to the termination of various supply agreements in connection with the closure of our Toulouse, France manufacturing facility and (ii) restructured a lease agreement where we had previously recorded charges for vacant office space, resulting in an adjustment of $2 million and payments of $4 million during the year. | |||||||||||||||||||||
Other Contingencies | |||||||||||||||||||||
During 2012, we recorded a benefit of $16 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 $18 million of on-going closure and decommissioning costs associated with the closure our Toulouse, France manufacturing facility and a net $5 million contract termination charge related to our corporate jet lease agreement accounted for in accordance with ASC Topic 420. | |||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
During 2011 and in connection with the completion of our IPO, we recorded $71 million of cash costs attributable primarily to the termination of various management agreements with affiliates and advisors of the Sponsors. (Refer to Note 11, “Certain Relationships and Related Party Transactions,” for more information regarding this management agreement). | |||||||||||||||||||||
Additionally, we accelerated the closure our Sendai, Japan fabrication facility during 2011 due to extensive damage from the March 2011 earthquake off the coast of Japan. As a result of this closure, we incurred $118 million in charges associated with non-cash asset impairment and inventory charges along with cash costs for employee termination benefits, contract termination and other on-going closure costs. These charges were partially offset by benefits of $95 million attributable to earthquake-related insurance recoveries and $10 million related to the sale of certain tools and equipment at the site. We also recorded a benefit of a $2 million related to the settlement of the majority of our Sendai, Japan subsidiary’s pension plan liability. |
Certain_Relationships_and_Rela
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Certain Relationships and Related Party Transactions | ' |
Certain Relationships and Related Party Transactions | |
Prior to the IPO, we had management agreements with affiliates or advisors of the Sponsors and other investors in Freescale LP pursuant to which the Sponsors and other investors in Freescale LP or their affiliates, officers, employees and/or representatives and/or co-investors (the “Advisors”) provided management and advisory services to us. Pursuant to the agreements, the Advisors received an aggregate annual management fee equal to 1.5% of our annual Adjusted EBITDA, and reimbursement for out-of-pocket expenses incurred by the Advisors pursuant to the agreements. Also, the Advisors could receive additional compensation for (i) investment banking or other advisory services provided to the Company by the Advisors or any of their affiliates in connection with a specific acquisition, divestiture, refinancing, recapitalization or similar transaction or (ii) other consulting services provided to the Company by the Advisors and out-of-pocket expenses incurred by the Advisors while providing such consulting services. The management agreements included customary exculpation and indemnification provisions in the favor of the Advisors. The management agreements were terminated by us in connection with the completion of the IPO in the second quarter of 2011. Pursuant to the terms of the management agreements, the Advisors received a $68 million payment in 2011 from us in consideration for the termination of these services. (Refer to Note 10, “Reorganization of Business and Other,” for further discussion.) For the year ended December 31, 2011, we recorded management fees of $12 million in selling, general and administrative expense prior to the termination of the agreement. |
Supplemental_EnterpriseWide_In
Supplemental Enterprise-Wide Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Disclosure Supplemental Enterprise Wide Information Additional Information [Abstract] | ' | |||||||||||
Supplemental Enterprise-Wide Information | ' | |||||||||||
Supplemental Enterprise-Wide Information | ||||||||||||
Geographic Region Information | ||||||||||||
The following geographic region information includes net sales, as measured by each of our subsidiaries from which our products were sold to external customers, as well as property, plant and equipment based on physical location. Net sales by country for the years ended December 31, 2013, 2012, and 2011, as well as property, plant and equipment as of December 31, 2013 and 2012 were as follows: | ||||||||||||
Net Sales | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Hong Kong | $ | 1,191 | $ | 1,107 | $ | 1,403 | ||||||
United States | 1,097 | 1,061 | 1,126 | |||||||||
Switzerland | 974 | 929 | 1,232 | |||||||||
Malaysia | 692 | 606 | 543 | |||||||||
Japan | 202 | 227 | 245 | |||||||||
Other nations | 30 | 15 | 23 | |||||||||
Total net sales | $ | 4,186 | $ | 3,945 | $ | 4,572 | ||||||
Property, Plant and Equipment | ||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||
United States | $ | 327 | $ | 346 | ||||||||
Malaysia | 202 | 211 | ||||||||||
China | 88 | 85 | ||||||||||
Other nations | 64 | 73 | ||||||||||
Total property, plant and equipment, net | $ | 681 | $ | 715 | ||||||||
Product Group Revenues | ||||||||||||
Our product revenues are aligned into five focused product groups: Microcontrollers, Digital Networking, Automotive MCUs, Analog and Sensors and Radio Frequency. We also derive net sales from “Other” which consists of product sales associated with end markets outside of target markets, including the cellular market, intellectual property licensing and sales, foundry wafer sales to other semiconductor companies and net sales from sources other than semiconductors. Net sales by product group for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Microcontrollers | $ | 826 | $ | 707 | $ | 790 | ||||||
Digital Networking | 915 | 852 | 928 | |||||||||
Automotive MCUs | 1,063 | 986 | 1,072 | |||||||||
Analog and Sensors | 736 | 722 | 785 | |||||||||
Radio Frequency | 352 | 303 | 418 | |||||||||
Other | 294 | 375 | 579 | |||||||||
Total net sales | $ | 4,186 | $ | 3,945 | $ | 4,572 | ||||||
Major Customers | ||||||||||||
Continental Automotive represented 15%, 15% and 13% of our total net sales in 2013, 2012 and 2011, respectively. No other end customer represented more than 10% of our total net sales in any of the last three years. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||
The following table presents the valuation and qualifying account activity for the years ended December 31, 2013 and 2012: | ||||||||||||||||
Balance at | Additions | Deductions(1) | Balance at | |||||||||||||
beginning of | charged to | end of | ||||||||||||||
period | costs & | period | ||||||||||||||
expenses | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||
Allowance for doubtful accounts | $ | 2 | $ | 1 | $ | (1 | ) | $ | 2 | |||||||
Product and service warranties | $ | 6 | $ | — | $ | (1 | ) | $ | 5 | |||||||
As of December 31, 2012: | ||||||||||||||||
Allowance for doubtful accounts | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||
Product and service warranties | $ | 4 | $ | 2 | $ | — | $ | 6 | ||||||||
(1) Accrual usage |
Supplemental_Guarantor_Condens
Supplemental Guarantor Condensed Consolidating Financial Statements | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Disclosure Supplemental Guarantor Condensed Consolidating Financial Statements Additional Information [Abstract] | ' | |||||||||||||||||||||||
Supplemental Guarantor Condensed Consolidating Financial Statements | ' | |||||||||||||||||||||||
Supplemental Guarantor Condensed Consolidating Financial Statements | ||||||||||||||||||||||||
As a result of the Merger and subsequent debt refinancing transactions, we had $2,993 million aggregate principal amount of Senior Notes outstanding as of December 31, 2013, as further discussed 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 December 31, 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.”) | ||||||||||||||||||||||||
The following tables present our results of operations, financial position and cash flows of Freescale Ltd., the Guarantors, Freescale Inc., the Non-Guarantors and eliminations for the years ended December 31, 2013, 2012 and 2011 and as of December 31, 2013 and December 31, 2012, to arrive at the information on a consolidated basis: | ||||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 5,363 | $ | 5,482 | $ | (6,659 | ) | $ | 4,186 | |||||||||||
Cost of sales | — | — | 3,885 | 5,173 | (6,659 | ) | 2,399 | |||||||||||||||||
Gross margin | — | — | 1,478 | 309 | — | 1,787 | ||||||||||||||||||
Selling, general and administrative | 7 | — | 640 | 194 | (377 | ) | 464 | |||||||||||||||||
Research and development | — | — | 488 | 267 | — | 755 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 13 | — | — | 13 | ||||||||||||||||||
Reorganization of business and other | — | — | 17 | 7 | — | 24 | ||||||||||||||||||
Operating (loss) earnings | (7 | ) | — | 320 | (159 | ) | 377 | 531 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (217 | ) | — | — | (217 | ) | ||||||||||||||||
Other income (expense), net | 218 | 220 | 119 | 387 | (1,426 | ) | (482 | ) | ||||||||||||||||
Earnings (loss) before income taxes | 211 | 220 | 222 | 228 | (1,049 | ) | (168 | ) | ||||||||||||||||
Income tax expense | — | — | 2 | 38 | — | 40 | ||||||||||||||||||
Net earnings (loss) | $ | 211 | $ | 220 | $ | 220 | $ | 190 | $ | (1,049 | ) | $ | (208 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 211 | $ | 220 | $ | 220 | $ | 190 | $ | (1,049 | ) | $ | (208 | ) | ||||||||||
Other comprehensive (loss) earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized losses arising during the period | — | — | (8 | ) | — | — | (8 | ) | ||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains arising during the period | — | — | 44 | 3 | — | 47 | ||||||||||||||||||
Amortization of actuarial (losses) gains included in net earnings (loss) | — | — | (1 | ) | 3 | — | 2 | |||||||||||||||||
Other comprehensive (loss) earnings | — | — | 35 | — | — | 35 | ||||||||||||||||||
Comprehensive earnings (loss) | $ | 211 | $ | 220 | $ | 255 | $ | 190 | $ | (1,049 | ) | $ | (173 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 5,179 | $ | 5,339 | $ | (6,573 | ) | $ | 3,945 | |||||||||||
Cost of sales | — | — | 3,827 | 5,050 | (6,573 | ) | 2,304 | |||||||||||||||||
Gross margin | — | — | 1,352 | 289 | — | 1,641 | ||||||||||||||||||
Selling, general and administrative | 7 | — | 643 | 184 | (396 | ) | 438 | |||||||||||||||||
Research and development | — | — | 471 | 271 | — | 742 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 13 | — | — | 13 | ||||||||||||||||||
Reorganization of business and other | — | — | (35 | ) | 20 | — | (15 | ) | ||||||||||||||||
Operating (loss) earnings | (7 | ) | — | 260 | (186 | ) | 396 | 463 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (32 | ) | — | — | (32 | ) | ||||||||||||||||
Other income (expense), net | 92 | 94 | (141 | ) | 405 | (981 | ) | (531 | ) | |||||||||||||||
Earnings (loss) before income taxes | 85 | 94 | 87 | 219 | (585 | ) | (100 | ) | ||||||||||||||||
Income tax (benefit) expense | — | — | (7 | ) | 9 | — | 2 | |||||||||||||||||
Net earnings (loss) | $ | 85 | $ | 94 | $ | 94 | $ | 210 | $ | (585 | ) | $ | (102 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 85 | $ | 94 | $ | 94 | $ | 210 | $ | (585 | ) | $ | (102 | ) | ||||||||||
Other comprehensive earnings (loss), net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 6 | — | — | 6 | ||||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | 1 | — | — | 1 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Losses arising during the period | — | — | (6 | ) | (12 | ) | — | (18 | ) | |||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings (loss) | — | — | 1 | (12 | ) | — | (11 | ) | ||||||||||||||||
Comprehensive earnings (loss) | $ | 85 | $ | 94 | $ | 95 | $ | 198 | $ | (585 | ) | $ | (113 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 6,078 | $ | 6,298 | $ | (7,804 | ) | $ | 4,572 | |||||||||||
Cost of sales | — | — | 4,486 | 5,995 | (7,804 | ) | 2,677 | |||||||||||||||||
Gross margin | — | — | 1,592 | 303 | — | 1,895 | ||||||||||||||||||
Selling, general and administrative | 12 | — | 664 | 208 | (374 | ) | 510 | |||||||||||||||||
Research and development | — | — | 504 | 293 | — | 797 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 232 | — | — | 232 | ||||||||||||||||||
Reorganization of business and other | 1 | — | 58 | 23 | — | 82 | ||||||||||||||||||
Operating (loss) earnings | (13 | ) | — | 134 | (221 | ) | 374 | 274 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt, net | — | — | (97 | ) | — | — | (97 | ) | ||||||||||||||||
Other (expense) income, net | (306 | ) | (306 | ) | (332 | ) | 386 | (1 | ) | (559 | ) | |||||||||||||
(Loss) earnings before income taxes | (319 | ) | (306 | ) | (295 | ) | 165 | 373 | (382 | ) | ||||||||||||||
Income tax expense | — | — | 14 | 14 | — | 28 | ||||||||||||||||||
Net (loss) earnings | $ | (319 | ) | $ | (306 | ) | $ | (309 | ) | $ | 151 | $ | 373 | $ | (410 | ) | ||||||||
Supplemental Condensed Consolidating Statement of Comprehensive (Loss) Earnings | ||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) earnings | $ | (319 | ) | $ | (306 | ) | $ | (309 | ) | $ | 151 | $ | 373 | $ | (410 | ) | ||||||||
Other comprehensive earnings (loss), net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized losses arising during the period | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||
Reclassification adjustment for items included in net (loss) earnings | — | — | — | — | — | — | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains (losses) arising during the period | — | — | 18 | (11 | ) | — | 7 | |||||||||||||||||
Amortization of actuarial gains included in net (loss) earnings | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings (loss) | — | — | 14 | (16 | ) | — | (2 | ) | ||||||||||||||||
Comprehensive (loss) earnings | $ | (319 | ) | $ | (306 | ) | $ | (295 | ) | $ | 135 | $ | 373 | $ | (412 | ) | ||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | — | $ | 235 | $ | 511 | $ | — | $ | 747 | ||||||||||||
Inter-company receivable | 169 | — | 445 | 504 | (1,118 | ) | — | |||||||||||||||||
Accounts receivable, net | — | — | 91 | 297 | — | 388 | ||||||||||||||||||
Inventory, net | — | — | 276 | 457 | — | 733 | ||||||||||||||||||
Other current assets | — | — | 74 | 53 | — | 127 | ||||||||||||||||||
Total current assets | 170 | — | 1,121 | 1,822 | (1,118 | ) | 1,995 | |||||||||||||||||
Property, plant and equipment, net | — | — | 327 | 354 | — | 681 | ||||||||||||||||||
Investment in affiliates | (4,721 | ) | (4,721 | ) | 1,364 | — | 8,078 | — | ||||||||||||||||
Intangible assets, net | — | — | 52 | — | — | 52 | ||||||||||||||||||
Inter-company note receivable | — | 118 | — | 161 | (279 | ) | — | |||||||||||||||||
Other assets, net | — | — | 156 | 163 | — | 319 | ||||||||||||||||||
Total Assets | $ | (4,551 | ) | $ | (4,603 | ) | $ | 3,020 | $ | 2,500 | $ | 6,681 | $ | 3,047 | ||||||||||
Liabilities and Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Current portion of long-term debt and capital lease obligations | $ | — | $ | — | $ | 93 | $ | — | $ | — | $ | 93 | ||||||||||||
Inter-company payable | — | — | 565 | 553 | (1,118 | ) | — | |||||||||||||||||
Accounts payable | — | — | 241 | 157 | — | 398 | ||||||||||||||||||
Accrued liabilities and other | — | — | 245 | 126 | — | 371 | ||||||||||||||||||
Total current liabilities | — | — | 1,144 | 836 | (1,118 | ) | 862 | |||||||||||||||||
Long-term debt | — | — | 6,386 | — | — | 6,386 | ||||||||||||||||||
Inter-company note payable | 43 | 118 | — | 118 | (279 | ) | — | |||||||||||||||||
Other liabilities | — | — | 211 | 182 | 393 | |||||||||||||||||||
Total liabilities | 43 | 118 | 7,741 | 1,136 | (1,397 | ) | 7,641 | |||||||||||||||||
Total shareholders’ (deficit) equity | (4,594 | ) | (4,721 | ) | (4,721 | ) | 1,364 | 8,078 | (4,594 | ) | ||||||||||||||
Total Liabilities and Shareholders’ (Deficit) Equity | $ | (4,551 | ) | $ | (4,603 | ) | $ | 3,020 | $ | 2,500 | $ | 6,681 | $ | 3,047 | ||||||||||
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 Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by operating activities | $ | 40 | $ | — | $ | 235 | $ | 465 | $ | (419 | ) | $ | 321 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (68 | ) | (83 | ) | — | (151 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 12 | — | 12 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (30 | ) | (40 | ) | — | (70 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||
Inter-company loans and capital transactions | (102 | ) | (106 | ) | 26 | (4 | ) | 186 | — | |||||||||||||||
Cash flow used for investing activities | (102 | ) | (106 | ) | (73 | ) | (115 | ) | 186 | (210 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (5,062 | ) | — | — | (5,062 | ) | ||||||||||||||||
Debt issuance proceeds, net of deferred financing costs | — | — | 4,929 | — | — | 4,929 | ||||||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 62 | — | — | — | — | 62 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | — | 106 | 102 | (441 | ) | 233 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 62 | 106 | (31 | ) | (441 | ) | 233 | (71 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | — | 131 | (95 | ) | — | 36 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 1 | — | 104 | 606 | — | 711 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 1 | $ | — | $ | 235 | $ | 511 | $ | — | $ | 747 | ||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow (used for) provided by operating activities | $ | — | $ | (1 | ) | $ | 326 | $ | 228 | $ | (203 | ) | $ | 350 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (58 | ) | (65 | ) | — | (123 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 1 | 18 | — | 19 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (32 | ) | (41 | ) | — | (73 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | 1 | — | — | 1 | ||||||||||||||||||
Inter-company loans and capital transactions | (28 | ) | (30 | ) | 37 | (9 | ) | 30 | — | |||||||||||||||
Cash flow used for investing activities | (28 | ) | (30 | ) | (51 | ) | (97 | ) | 30 | (176 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (733 | ) | (1 | ) | — | (734 | ) | |||||||||||||||
Debt issuance proceeds, net of deferred financing costs | — | — | 481 | — | — | 481 | ||||||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 21 | — | — | — | — | 21 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | 6 | 31 | 25 | (235 | ) | 173 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 27 | 31 | (227 | ) | (236 | ) | 173 | (232 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (1 | ) | — | 48 | (108 | ) | — | (61 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 2 | — | 56 | 714 | — | 772 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 1 | $ | — | $ | 104 | $ | 606 | $ | — | $ | 711 | ||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by operating activities | $ | 9 | $ | 2 | $ | 104 | $ | 81 | $ | (97 | ) | $ | 99 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (83 | ) | (52 | ) | — | (135 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment and assets held for sale | — | — | 55 | 13 | — | 68 | ||||||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | 3 | — | — | 3 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (36 | ) | (26 | ) | — | (62 | ) | |||||||||||||||
Contribution of proceeds from IPO of common shares and over-allotment exercise, net of offering costs | (838 | ) | (838 | ) | — | — | 1,676 | — | ||||||||||||||||
Proceeds from property and casualty insurance recoveries | — | — | — | 37 | — | 37 | ||||||||||||||||||
Inter-company loan receivable and dividends | — | — | (1 | ) | (10 | ) | 11 | — | ||||||||||||||||
Cash flow used for investing activities | (838 | ) | (838 | ) | (62 | ) | (38 | ) | 1,687 | (89 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (1,850 | ) | (3 | ) | — | (1,853 | ) | |||||||||||||||
Debt issuance proceeds, net of deferred financing costs | — | — | 724 | — | — | 724 | ||||||||||||||||||
Proceeds from IPO of common shares and over-allotment exercise, net of offering costs | 838 | — | — | — | — | 838 | ||||||||||||||||||
Receipt of contribution of net proceeds from IPO of common shares and over-allotment exercise | — | 838 | 838 | — | (1,676 | ) | — | |||||||||||||||||
Other | 1 | — | — | — | — | 1 | ||||||||||||||||||
Inter-company loan payable, dividends and capital contributions | (8 | ) | (2 | ) | — | (76 | ) | 86 | — | |||||||||||||||
Cash flow provided by (used for) financing activities | 831 | 836 | (288 | ) | (79 | ) | (1,590 | ) | (290 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 9 | — | 9 | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 2 | — | (246 | ) | (27 | ) | — | (271 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 302 | 741 | — | 1,043 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 2 | $ | — | $ | 56 | $ | 714 | $ | — | $ | 772 | ||||||||||||
Quarterly_and_Other_Financial_
Quarterly and Other Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly and Other Financial Data (unaudited) | ' | ||||||||||||||||
Quarterly and Other Financial Data (unaudited) | |||||||||||||||||
2013 Operating Results (in millions, except per share data) | 4th | 3rd | 2nd | 1st | |||||||||||||
Net sales | $ | 1,082 | $ | 1,085 | $ | 1,038 | $ | 981 | |||||||||
Gross margin | $ | 475 | $ | 473 | $ | 441 | $ | 398 | |||||||||
Operating earnings | $ | 145 | $ | 157 | $ | 125 | $ | 104 | |||||||||
Net (loss) earnings | $ | (118 | ) | $ | 23 | $ | (65 | ) | $ | (48 | ) | ||||||
Net (loss) earnings per common share: | |||||||||||||||||
Basic | $ | (0.46 | ) | $ | 0.09 | $ | (0.25 | ) | $ | (0.19 | ) | ||||||
Diluted(1) | $ | (0.46 | ) | $ | 0.09 | $ | (0.25 | ) | $ | (0.19 | ) | ||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 258 | 258 | 255 | 252 | |||||||||||||
Diluted | 262 | 261 | 259 | 256 | |||||||||||||
2012 Operating Results (in millions, except per share data) | 4th | 3rd | 2nd | 1st | |||||||||||||
Net sales | $ | 957 | $ | 1,009 | $ | 1,029 | $ | 950 | |||||||||
Gross margin | $ | 375 | $ | 424 | $ | 440 | $ | 402 | |||||||||
Operating earnings | $ | 56 | $ | 127 | $ | 112 | $ | 168 | |||||||||
Net loss | $ | (35 | ) | $ | (24 | ) | $ | (34 | ) | $ | (9 | ) | |||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.10 | ) | $ | (0.14 | ) | $ | (0.04 | ) | |||||
Diluted(1) | $ | (0.14 | ) | $ | (0.10 | ) | $ | (0.14 | ) | $ | (0.04 | ) | |||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 249 | 249 | 248 | 247 | |||||||||||||
Diluted | 251 | 251 | 250 | 251 | |||||||||||||
(1) No dilutive securities have been included in the diluted net loss per share calculation in periods when a net loss was incurred. |
Overview_and_Basis_of_Presenta1
Overview and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Basis of Presentation and Principles of Consolidation | ' |
Basis of Presentation and Principles of Consolidation: Freescale Semiconductor, Inc. (“Freescale Inc.”) was incorporated in Delaware in 2003. In the second quarter of 2004, Motorola, Inc. (“Motorola”) transferred substantially all of its semiconductor businesses’ assets and liabilities to Freescale Inc. (the “Contribution”) in anticipation of an initial public offering (IPO) of Freescale Inc. Class A common stock; the IPO was completed on July 21, 2004. Prior to the IPO, Freescale Inc. was a wholly owned subsidiary of Motorola. All of the Freescale Inc. Class B shares of common stock were held by Motorola until Motorola distributed its remaining ownership interest in Freescale Inc. by means of a special dividend to its common stockholders (the “Distribution”) on December 2, 2004 (the “Distribution Date”). | |
On December 1, 2006, Freescale Inc. was acquired by a consortium of private equity funds (the “Merger”). The consortium includes The Blackstone Group, The Carlyle Group, funds advised by Permira Advisers, LLC, TPG Capital and others (collectively, the “Sponsors”). Pursuant to the terms of the Merger, Freescale Inc. continues as a wholly owned indirect subsidiary of Freescale Semiconductor, Ltd. (“Freescale Ltd.”). At the close of the Merger, Freescale Inc. became a subsidiary of Freescale Semiconductor Holdings V, Inc. (“Holdings V”), which is wholly owned by Freescale Semiconductor Holdings IV, Ltd. (“Holdings IV”), which is wholly owned by Freescale Semiconductor Holdings III, Ltd. (“Holdings III”), which is wholly owned by Freescale Semiconductor Holdings II, Ltd. (“Holdings II”), which is wholly owned by Freescale Ltd. All five of these companies were formed for the purposes of facilitating the Merger and are collectively referred to as the “Parent Companies.” Freescale Holdings L.P., a Cayman Islands limited partnership (“Freescale LP”), an entity controlled by the Sponsors, owns the majority of the outstanding shares of Freescale Ltd. as of December 31, 2013. The reporting entity subsequent to the Merger is Freescale Ltd. Freescale Ltd. refers to the operations of Freescale Ltd. and its subsidiaries and may be referred to as the “Company,” “Freescale,” “we,” “us” or “our,” as the context requires. | |
Our consolidated financial statements include all majority-owned subsidiaries and assets and liabilities of the Company. Investments in which the Company exercises significant influence, but which it does not control, are accounted for under the equity method of accounting. Investments in which the Company does not exercise significant influence are recorded at cost. All intercompany transactions between and among the Company and its subsidiaries have been eliminated. | |
In connection with the Merger, Freescale Inc. incurred significant indebtedness. In addition, the purchase price paid in connection with the Merger was allocated to state the acquired assets and assumed liabilities at fair value. The purchase accounting adjustments (i) increased the carrying value of our inventory and property, plant and equipment, (ii) established intangible assets for our trademarks / tradenames, customer relationships, developed technology / purchased licenses, and in-process research and development (which was expensed in the financial statements after the consummation of the Merger), and (iii) revalued our long-term benefit plan obligations, among other things. Subsequent to the Merger, interest expense and non-cash depreciation and amortization charges increased significantly. During 2008, however, we incurred substantial non-cash impairment charges against the goodwill and intangible assets established at the time of the Merger. This event served to reduce the post-Merger increase in our non-cash amortization charges, although they are still above pre-Merger levels. As of December 31, 2011, the majority of these adjustments were fully amortized. | |
During the second quarter of 2011, we completed an IPO with an over-allotment option under which we sold a total of 49 million of our common shares at a public offering price of $18.00 per share. We utilized the net proceeds, along with cash on hand: (i) to repay or redeem a portion of our outstanding indebtedness, (ii) to pay a termination fee to affiliates and advisors of our Sponsors in connection with the termination of our management agreements and (iii) to pay various fees and expenses in connection with amending our Credit Facility, including the establishment of the Replacement Revolver. (Refer to Note 11, “Certain Relationships and Related Party Transactions,” for further discussion of the payment to affiliates and advisors of our Sponsors.) | |
We consider events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. | |
Risks and Uncertainties | ' |
Risks and Uncertainties: Our business is significantly impacted by demand for electronic content in automobiles, networking and wireless infrastructure equipment, various industrial devices relating to factory automation, energy conservation and medical equipment, and consumer electronic devices. We operate in an industry that is cyclical and subject to constant and rapid technological change, product obsolescence, price erosion, evolving standards, short product life-cycles and fluctuations in product supply and demand. | |
We continue to focus our resources on our core automotive, networking, industrial and consumer products. Our future net sales and profitability will be affected by, among other factors, the general global economic environment, our ability to meet unscheduled or temporary increases in demand and our ability to meet product development launch cycles in our targeted markets, among other factors. | |
Revenue Recognition | ' |
Revenue Recognition: We recognize revenue from product sales when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable, and collection of the related receivable is reasonably assured, which is generally at the time of shipment. Sales with destination point terms, which are related primarily to European customers where these terms are customary and certain customers to whom Freescale ships product directly from Asia, are recognized upon delivery. Accruals are established, with the associated reduction to net sales at the time the related revenue is recognized, for allowances for discounts and product returns based on actual historical experience. Revenue for services is recognized ratably over the contract term or as services are performed. | |
Net sales from contracts with multiple deliverables are recognized as each deliverable is earned based on the relative fair value of each deliverable when there are no undelivered items that are essential to the functionality of the delivered items and when the amount is not contingent upon delivery of the undelivered items. More specifically, the deliverables under each arrangement are analyzed to determine whether they are separate units of accounting, and if so, the total arrangement consideration is allocated based on each deliverable’s relative selling price using vendor-specific objective evidence (“VSOE”), third-party evidence (“TPE”), or estimated selling prices (“ESP”). When we are unable to establish selling price using VSOE or TPE, we use ESP in our allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact a sale if the product or service was sold on a standalone basis. The ESP is determined by considering multiple factors including, but not limited to, our pricing practices, gross margin objectives, internal costs and industry specific information. Changes in any number of these factors may have a substantial impact on the selling price as assigned to each deliverable. These inputs and assumptions represent management’s best estimates at the time of the transaction. Applicable receivables are discounted in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Revenue related to licensing agreements is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection of resulting receivables is reasonably assured. Revenue from upfront payments for the licensing of our patents is recognized when the arrangement is mutually signed, if there is no future delivery or future performance obligations and all other criteria are met. When patent licensing arrangements include royalties for future sales of the licensees’ products using our licensed patented technology, revenue is recognized based on royalty reports received from the licensee, provided that all other criteria have been met. As a percentage of sales, revenue related to intellectual property sales or licensing agreements represented 5%, 5% and 3% for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Distributor Sales | ' |
Distributor Sales: Revenue from sales to distributors of our products is recognized when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable, and collection of the related receivable is reasonably assured, which is generally at the time of shipment. In response to competitive market conditions, we offer incentive programs common to the semiconductor industry whereby distributors receive certain price adjustments to meet individual competitive opportunities, or are allowed to return or scrap a limited amount of product in accordance with contractual terms agreed upon with the distributor, or receive price protection credits when our standard published prices are lowered from the price the distributor paid for product still in its inventory. Accruals for the estimated distributor incentives are established at the time of the sale, along with a related reduction to net sales, based on the terms of the various incentive programs, historical experience with such programs, prevailing market conditions and current distributor inventory levels. We continually monitor the actual claimed allowances against our estimates, and we adjust our estimates as appropriate to reflect trends in pricing environments and distributor resales and inventory levels. Distributor reserves are also adjusted when recent historical data does not represent anticipated future activity. As a percentage of sales, revenue derived from distributors represented 25%, 23% and 23% for the years ended December 31, 2013, 2012 and 2011, respectively. | |
On January 7, 2014, in an effort to streamline our operations and improve the efficiency of our global distribution network, we executed a consolidation of our global distribution channel from three to two distribution partners. In connection with this action, we recorded a modest reduction to net sales with a corresponding impact to gross margin and net loss in our Consolidated Statement of Operations for the year ending December 31, 2013, related to the potential impact of the discontinued distributor’s inventory held by them as of December 31, 2013. | |
Product-Related Expenses | ' |
Product-Related Expenses: Shipping and handling costs associated with product sales are included in cost of sales. Expenditures for advertising are expensed as incurred, and are included in selling, general and administrative expenses. Provisions for estimated costs related to product warranties are made at the time the related sale is recorded, based on historic trends and are included in cost of sales. Research and development costs are expensed as incurred. | |
Share-Based Compensation Costs | ' |
Share-Based Compensation Costs: We have several share-based employee compensation plans, which are more fully described in Note 6, “Employee Benefit and Incentive Plans.” We account for awards granted under those plans using the fair-value recognition provisions of ASC Topic 718, “Compensation-Stock Compensation” (“ASC Topic 718”). We estimate the fair value of non-qualified options using the Black-Scholes option-pricing model with the weighted-average assumptions listed in Note 6 or using the Monte Carlo valuation model, as appropriate. | |
Foreign Currency Transactions | ' |
Foreign Currency Transactions: The effects of remeasuring the non-functional currency assets or liabilities into the functional currency as well as gains and losses on hedges of existing assets or liabilities are marked-to-market, and the result is included within other expense, net in the accompanying Consolidated Statements of Operations. Gains and losses on financial instruments that hedge future cash flows are deferred until such time as the underlying transactions are recognized or are recorded immediately when it is probable the transaction will not occur. Gains or losses on financial instruments that do not qualify as hedges are recognized immediately as income or expense. | |
The effects of translating the financial position and results of operations of local currency functional operations for certain of our non-U.S. subsidiaries into U.S. dollars are included in a separate component of shareholders’ deficit. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents: We consider all highly liquid investments, not considered short-term investments, purchased with an original maturity of three months or less to be cash equivalents. | |
Inventory | ' |
Inventory: Inventory is stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates average costs on a first-in first-out basis. Standard costs are based on the normal utilization of installed factory capacity. Costs associated with underutilization of capacity are expensed as incurred. We review inventory quarterly for salability and obsolescence. A specific allowance is provided for inventory considered unlikely to be sold. We write-off inventory in the period in which disposal occurs. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated amortization and depreciation. Depreciation is recorded using the straight-line method, based on the lesser of the estimated useful or contractual lives of the assets (buildings and building equipment, 5-40 years; machinery and equipment, 3-17 years), and commences once the assets are ready for their intended use. The useful lives of the assets acquired by Freescale Ltd. as part of the Merger were established in connection with the allocation of fair values at December 2, 2006 and were largely fully depreciated as of December 31, 2011. | |
Assets Held for Sale | ' |
Assets Held for Sale: When management determines that an asset is to be sold and that it is available for immediate sale subject only to terms that are usual and customary, the asset is no longer depreciated and is reclassified to assets held for sale. Assets held for sale are reported in other current assets at the lower of the carrying amount or fair value less costs to sell. | |
Intangible Assets | ' |
Intangible Assets: Our intangible assets are amortized on a straight-line basis over their respective estimated useful lives ranging from two to ten years. The useful lives of the intangible assets acquired by Freescale Ltd. as part of the Merger were established in connection with the allocation of fair values at December 2, 2006 and were largely fully amortized as of December 31, 2011. We have no intangible assets with indefinite useful lives. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets: Long-lived assets held and used by us and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. We evaluate recoverability of assets to be held and used by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the assets. We determine fair value based on either market quotes, if available, or discounted cash flows using a discount rate commensurate with the risk inherent in our current business model for the specific asset being valued. | |
Income Taxes | ' |
Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and also for net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
We have reserves for taxes, associated interest, and other related costs that may become payable in future years as a result of audits by tax authorities. Although we believe that the positions taken on previously filed tax returns are fully supported, we nevertheless have established reserves recognizing that various taxing authorities may challenge certain positions, which may not be fully sustained. The tax reserves are reviewed quarterly and adjusted as events occur that affect our potential liability for additional taxes, such as lapsing of applicable statutes of limitations, proposed assessments by tax authorities, resolution of tax audits, negotiations between tax authorities of different countries concerning our transfer prices, identification of new issues and issuance of new regulations or new case law. | |
Deferred Financing Costs | ' |
Deferred Financing Costs: We capitalize direct costs incurred to obtain financings and amortize these costs over the terms of the related debt instrument using the effective interest method. Upon the extinguishment of the related debt, any unamortized deferred financing costs are immediately expensed. | |
Fair Values of Financial Instruments | ' |
Fair Values of Financial Instruments: The fair values of financial instruments are determined based on quoted market prices and market interest rates as of the end of the reporting period. Our financial instruments include cash and cash equivalents, accounts receivable, investments, accounts payable, accrued liabilities, derivative contracts and long-term debt. Except for the fair value of our long-term debt, the fair values of these financial instruments were not materially different from their carrying or contract values at December 31, 2013 and 2012. See Note 3, “Fair Value Measurement,” Note 4, “Debt,” Note 5, “Risk Management” and Note 6, “Employee Benefit and Incentive Plans” for further details concerning fair value measurement, the fair value of our long-term debt, derivative contracts and pension plan assets, respectively. | |
Use of Estimates | ' |
Use of Estimates: 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 the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassifications | ' |
Reclassifications: Certain amounts reported in previous periods have been reclassified to conform to the current presentation. | |
Business Segments | ' |
Business Segments: Management believes the current organizational structure of our sales and marketing, new product introduction, and supply chain operations enables us to execute to our strategic growth initiatives. We have five major focused product groups to facilitate faster decision making and focus on delivering new products. Based upon the current organizational structure, we operate and account for our results in one reportable segment. We design, develop, manufacture and market high performance semiconductor products. Our Chief Executive Officer (CEO) has been identified as the Chief Operating Decision Maker as defined by ASC Topic 280, “Segment Reporting” (“ASC Topic 280”). We have one operating segment, as defined by ASC Topic 280, and therefore, the aggregation criteria to determine reportable segments are not applicable. |
Fair_Value_Measurement_Fair_Va
Fair Value Measurement Fair Value Measurement (Policies) | 12 Months Ended |
Dec. 31, 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) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
Component of Other Expense, Net | ' | |||||||||||||||
The following table displays the amounts comprising other expense, net in the accompanying Consolidated Statements of Operations: | ||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||||||
Interest expense | $ | (490 | ) | $ | (519 | ) | $ | (572 | ) | |||||||
Interest income | 7 | 9 | 9 | |||||||||||||
Interest expense, net | (483 | ) | (510 | ) | (563 | ) | ||||||||||
Other, net | 1 | (21 | ) | 4 | ||||||||||||
Other expense, net | $ | (482 | ) | $ | (531 | ) | $ | (559 | ) | |||||||
Basic and Diluted Net Loss Per Common Share | ' | |||||||||||||||
The following is a reconciliation of the numerators and denominators of the basic and diluted net loss per common share computations for the periods presented: | ||||||||||||||||
(in millions, except per share amount) | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||||
Basic net loss per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (208 | ) | $ | (102 | ) | $ | (410 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding (1) | 256 | 248 | 226 | |||||||||||||
Basic net loss per share | $ | (0.81 | ) | $ | (0.41 | ) | $ | (1.82 | ) | |||||||
Diluted net loss per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (208 | ) | $ | (102 | ) | $ | (410 | ) | |||||||
Denominator: | ||||||||||||||||
Number of shares used in basic computation (1) | 256 | 248 | 226 | |||||||||||||
Add: Incremental shares for dilutive effect of warrants (2) | — | — | — | |||||||||||||
Add: Incremental shares for dilutive effect of stock options (3) | 2 | 2 | 1 | |||||||||||||
Add: Incremental shares for dilutive effect of unvested RSUs (4) | 1 | 1 | — | |||||||||||||
Adjusted weighted average common shares outstanding | 259 | 251 | 227 | |||||||||||||
Diluted net loss per share (5) | $ | (0.81 | ) | $ | (0.41 | ) | $ | (1.82 | ) | |||||||
-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, 4 million and 1 million common shares that were outstanding during 2013, 2012 and 2011, 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 both 2013 and 2011 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 unvested RSUs that were anti-dilutive in 2012. | |||||||||||||||
-5 | No dilutive securities have been included in the diluted net loss per share calculations, as a net loss was incurred in all periods presented. | |||||||||||||||
Inventory, Net | ' | |||||||||||||||
Inventory, Net | ||||||||||||||||
Inventory, net consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Work in process and raw materials | $ | 497 | $ | 578 | ||||||||||||
Finished goods | 236 | 219 | ||||||||||||||
Inventory, net | $ | 733 | $ | 797 | ||||||||||||
Other Current Assets | ' | |||||||||||||||
Other Current Assets | ||||||||||||||||
Other current assets consisted of the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Deferred income taxes | $ | 54 | $ | 86 | ||||||||||||
Prepaid expenses | 27 | 28 | ||||||||||||||
Miscellaneous receivables | 19 | 20 | ||||||||||||||
Income tax receivable | 6 | 10 | ||||||||||||||
Other | 21 | 22 | ||||||||||||||
Total other current assets | $ | 127 | $ | 166 | ||||||||||||
Component of Property, Plant and Equipment, Net | ' | |||||||||||||||
Property, Plant and Equipment, Net | ||||||||||||||||
Property, plant and equipment, net consisted of the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Land | $ | 56 | $ | 56 | ||||||||||||
Buildings and improvements | 862 | 854 | ||||||||||||||
Machinery and equipment | 2,520 | 2,471 | ||||||||||||||
Assets not yet placed in service | 24 | 21 | ||||||||||||||
Total | 3,462 | 3,402 | ||||||||||||||
Less accumulated depreciation and amortization | (2,781 | ) | (2,687 | ) | ||||||||||||
Property, plant and equipment, net | $ | 681 | $ | 715 | ||||||||||||
Intangible Assets, Net | ' | |||||||||||||||
Intangible Assets, Net | ||||||||||||||||
Intangible assets, net of $52 million and $64 million at December 31, 2013 and 2012, respectively, were composed of the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Amortized | Accumulated | Amortized | Accumulated | |||||||||||||
Cost | Amortization | Cost | Amortization | |||||||||||||
Developed technology / purchased licenses | $ | 40 | $ | 25 | $ | 39 | $ | 25 | ||||||||
Trademarks / tradenames | 144 | 107 | 144 | 94 | ||||||||||||
Intangible assets, net | $ | 184 | $ | 132 | $ | 183 | $ | 119 | ||||||||
Other Assets, Net | ' | |||||||||||||||
Other Assets, Net | ||||||||||||||||
Other assets, net consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Deferred financing costs | $ | 102 | $ | 106 | ||||||||||||
Deferred income taxes | 92 | 101 | ||||||||||||||
Tool and die, net | 56 | 53 | ||||||||||||||
Other long-term receivables | 34 | 43 | ||||||||||||||
Asia land leases | 18 | 19 | ||||||||||||||
Income tax receivable | 11 | 7 | ||||||||||||||
Other | 6 | 5 | ||||||||||||||
Total other assets, net | $ | 319 | $ | 334 | ||||||||||||
Accrued Liabilities and Other | ' | |||||||||||||||
Accrued Liabilities and Other | ||||||||||||||||
Accrued liabilities consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Employee compensation | $ | 150 | $ | 120 | ||||||||||||
Interest payable | 75 | 103 | ||||||||||||||
Severance | 31 | 107 | ||||||||||||||
Taxes other than income taxes | 17 | 9 | ||||||||||||||
Deferred revenue | 1 | 101 | ||||||||||||||
Other | 97 | 103 | ||||||||||||||
Total accrued liabilities and other | $ | 371 | $ | 543 | ||||||||||||
Other Liabilities | ' | |||||||||||||||
Other Liabilities | ||||||||||||||||
Other liabilities consisted of the following: | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Retiree healthcare obligation | $ | 117 | $ | 157 | ||||||||||||
Pension obligations | 107 | 102 | ||||||||||||||
Deferred income taxes | 65 | 43 | ||||||||||||||
Environmental reserves | 39 | 39 | ||||||||||||||
Income taxes payable | 28 | 71 | ||||||||||||||
Other | 37 | 43 | ||||||||||||||
Total other liabilities | $ | 393 | $ | 455 | ||||||||||||
Accumulated Other Comprehensive Earnings | ' | |||||||||||||||
Accumulated Other Comprehensive Earnings | ||||||||||||||||
Unrealized | Unrealized | Foreign Currency | Total | |||||||||||||
(Loss) | (Loss) Gain on | Translation | ||||||||||||||
Gain on | Postretirement | |||||||||||||||
Derivatives | Obligations | |||||||||||||||
Balance at of January 1, 2011 | $ | (1 | ) | $ | (2 | ) | $ | 30 | $ | 27 | ||||||
2011 net change | (4 | ) | 7 | (5 | ) | (2 | ) | |||||||||
Balance at December 31, 2011 | (5 | ) | 5 | 25 | 25 | |||||||||||
2012 net change | 7 | (18 | ) | — | (11 | ) | ||||||||||
Balance at December 31, 2012 | 2 | (13 | ) | 25 | 14 | |||||||||||
2013 net change | (8 | ) | 49 | (6 | ) | 35 | ||||||||||
Balance at December 31, 2013 | $ | (6 | ) | $ | 36 | $ | 19 | $ | 49 | |||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ||||||||||||
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 December 31, 2013 and 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 2013 and 2012, there were no transfers between Level 1 and Level 2. We had no Level 3 instruments at December 31, 2013 or 2012. | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of December 31, 2013 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Time deposits (1) | $ | 339 | $ | 339 | $ | — | |||||||
Money market mutual funds (1) | 5 | 5 | — | ||||||||||
Foreign currency derivative contracts (2) | 2 | — | 2 | ||||||||||
Interest rate swap agreements (3) | 1 | — | 1 | ||||||||||
Total Assets | $ | 347 | $ | 344 | $ | 3 | |||||||
Liabilities | |||||||||||||
Foreign currency derivative contracts (2) | $ | 5 | $ | — | $ | 5 | |||||||
Interest rate swap agreements (3) | 6 | — | 6 | ||||||||||
Commodity derivative contracts (4) | 3 | — | 3 | ||||||||||
Total Liabilities | $ | 14 | $ | — | $ | 14 | |||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | ||||||||||||
Markets for | Observable | ||||||||||||
Identical Assets | Inputs | ||||||||||||
As of December 31, 2012 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Time deposits (1) | $ | 285 | $ | 285 | $ | — | |||||||
Money market mutual funds (1) | 192 | 192 | — | ||||||||||
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 Consolidated Balance Sheets at December 31, 2013 and December 31, 2012: | |||||||||||||
-1 | Time deposits and money market mutual funds are reported as cash and cash equivalents. The decline in funds invested in money market mutual funds from December 31, 2012 to December 31, 2013 was largely due to a shift of cash from lower yielding funds to bank accounts to take advantage of the fee offset obtained on bank account holdings. | ||||||||||||
-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) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Carrying Value of Long-term Debt | ' | |||||||
The carrying value of our long-term debt at December 31, 2013 and December 31, 2012 consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Extended maturity term loan due 2016 | $ | — | $ | 2,215 | ||||
2012 Term Loan due 2019 | — | 491 | ||||||
2016 Term Loan | 347 | — | ||||||
2020 Term Loan | 2,349 | — | ||||||
2021 Term Loan | 790 | — | ||||||
Replacement revolver due 2016 | — | — | ||||||
Senior secured 10.125% notes due 2018 | — | 663 | ||||||
Senior secured 9.25% notes due 2018 | — | 1,380 | ||||||
Senior secured 5.00% notes due 2021 | 500 | — | ||||||
Senior secured 6.00% notes due 2022 | 960 | — | ||||||
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 | 6,479 | 6,380 | ||||||
Less: current maturities | (93 | ) | (5 | ) | ||||
Total long-term debt | $ | 6,386 | $ | 6,375 | ||||
-1 | The senior unsecured floating rate notes due 2014 bear interest at a rate, reset quarterly, equal to three month LIBOR (0.24% in effect on December 31, 2013) plus 3.875% per annum. |
Risk_Management_Tables
Risk Management (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [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 December 31, 2013 and December 31, 2012: | |||||||||||
Buy (Sell) | December 31, | December 31, | |||||||||
2013 | 2012 | ||||||||||
Chinese Renminbi | $ | 30 | $ | 23 | |||||||
Euro | $ | 29 | $ | 104 | |||||||
Malaysian Ringgit | $ | 16 | $ | 26 | |||||||
Japanese Yen | $ | 15 | $ | 28 | |||||||
Indian Rupee | $ | (5 | ) | $ | (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 December 31, 2013 and December 31, 2012: | |||||||||||
Buy (Sell) | December 31, | December 31, | Hedged Exposure | ||||||||
2013 | 2012 | ||||||||||
Malaysian Ringgit | $ | 80 | $ | 68 | Cost of sales | ||||||
Chinese Renminbi | $ | 93 | $ | 53 | Cost of sales | ||||||
$ | 23 | $ | 13 | Selling, general and administrative | |||||||
$ | 23 | $ | 11 | Research and development | |||||||
Japanese Yen | $ | 35 | $ | — | Cost of sales | ||||||
Euro | $ | (33 | ) | $ | — | Net sales | |||||
Employee_Benefit_and_Incentive1
Employee Benefit and Incentive Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share and Equity-based Compensation | ' | ||||||||||||
Our total share and equity-based compensation expense is presented below: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Cost of sales | $ | 11 | $ | 8 | $ | 3 | |||||||
Selling, general and administrative | 26 | 27 | 21 | ||||||||||
Research and development | 11 | 8 | 3 | ||||||||||
Total | $ | 48 | $ | 43 | $ | 27 | |||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||
A summary of changes in the RSUs, TSRs and PRSUs outstanding under the 2011 Plan during the year ended December 31, 2013 is presented below: | |||||||||||||
RSUs, TSRs and PRSUs | Wtd. Avg. grant | ||||||||||||
(in thousands) | date fair value | ||||||||||||
per share | |||||||||||||
Non-vested RSU, TSR and PRSU balance at January 1, 2013 | 4,520 | $ | 14.19 | ||||||||||
Granted | 4,710 | $ | 13.98 | ||||||||||
Issued | (1,145 | ) | $ | 13.59 | |||||||||
Terminated, canceled or expired | (794 | ) | $ | 15.34 | |||||||||
Non-vested RSU, TSR and PRSU balance at December 31, 2013 | 7,291 | $ | 14.04 | ||||||||||
Summary of Changes in RSUs and DSUs | ' | ||||||||||||
A summary of changes in RSUs and DSUs outstanding during the year ended December 31, 2013 is presented below: | |||||||||||||
RSUs and DSUs | Wtd. Avg. grant | ||||||||||||
(in thousands) | date fair value | ||||||||||||
per share | |||||||||||||
Non-vested RSU and DSU balance at January 1, 2013 | 99 | $ | 11.63 | ||||||||||
Granted | — | $ | — | ||||||||||
Vested | 14 | $ | 10.48 | ||||||||||
Issued | (61 | ) | $ | 24.79 | |||||||||
Terminated, canceled or expired | (30 | ) | $ | 12.69 | |||||||||
Non-vested RSU and DSU balance at December 31, 2013 | 22 | $ | 10.59 | ||||||||||
Weighted Average Assumptions for Benefit Plans | ' | ||||||||||||
The weighted average assumptions for these benefit plans as of December 31, 2013 and 2012 were as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Discount rates | 3 | % | 3 | % | |||||||||
Expected return on plan assets | 3.4 | % | 3.4 | % | |||||||||
Rate of compensation increase | 3.2 | % | 3 | % | |||||||||
Fair Values of Pension Plan Assets | ' | ||||||||||||
The fair values of our pension plan assets at December 31, 2013 and 2012 by asset category, utilizing the fair value hierarchy discussed in Note 3, “Fair Value Measurements,” are as follows: | |||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | ||||||||||||
As of December 31, 2013 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Common collective trust | $ | 39 | $ | — | $ | 39 | |||||||
Insurance contracts | 14 | — | 14 | ||||||||||
Total assets | $ | 53 | $ | — | $ | 53 | |||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | ||||||||||||
As of December 31, 2012 | Total | (Level 1) | (Level 2) | ||||||||||
Assets | |||||||||||||
Common collective trust | $ | 41 | $ | — | $ | 41 | |||||||
Insurance contracts | 14 | — | 14 | ||||||||||
Total assets | $ | 55 | $ | — | $ | 55 | |||||||
Post-retirement Healthcare Plan expenses | ' | ||||||||||||
The components of the expense we incurred under the Post-retirement Healthcare Plan were as follows: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | |||||||
Interest cost | 6 | 7 | 9 | ||||||||||
Net amortization of gains | (1 | ) | (1 | ) | — | ||||||||
One-time deviation | — | — | (1 | ) | |||||||||
Post-retirement expense | $ | 6 | $ | 7 | $ | 9 | |||||||
Obligations and Assets for Post-Retirement Healthcare Plan | ' | ||||||||||||
Our obligation to the Post-retirement Healthcare Plan is as follows: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Beginning of year | $ | 166 | $ | 158 | $ | 177 | |||||||
Service cost | 1 | 1 | 1 | ||||||||||
Interest cost | 6 | 7 | 9 | ||||||||||
Actuarial loss (gain) | (45 | ) | 10 | (18 | ) | ||||||||
Benefits paid, net | (6 | ) | (6 | ) | (10 | ) | |||||||
Prior service cost | — | (5 | ) | — | |||||||||
Other | — | 1 | — | ||||||||||
One-time deviation | — | — | (1 | ) | |||||||||
Total benefit obligation | $ | 122 | $ | 166 | $ | 158 | |||||||
Weighted Average Assumptions for Retiree Medical Benefits | ' | ||||||||||||
The weighted average assumptions for these retiree medical benefits as of December 31, 2013 and 2012 were as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Discount rate | 4.75 | % | 3.75 | % | |||||||||
Assumed health care trend rate for next year | 6.72 | % | 7.24 | % | |||||||||
Assumed ultimate health care trend rate | 4.5 | % | 5 | % | |||||||||
Year that the rate reaches the ultimate trend rate | 2026 | 2020 | |||||||||||
Reconciliation of Funded Status of Post-Retirement Healthcare Plan | ' | ||||||||||||
The reconciliation of the funded status of the Post-retirement Healthcare Plan is as follows: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Benefit obligation | $ | (122 | ) | $ | (166 | ) | |||||||
Fair value of plan assets | — | — | |||||||||||
Funded status | (122 | ) | (166 | ) | |||||||||
Unrecognized net gain | (67 | ) | (23 | ) | |||||||||
Unrecognized prior service cost | (4 | ) | (5 | ) | |||||||||
Accrued cost | $ | (193 | ) | $ | (194 | ) | |||||||
2011 Plan [Member] | ' | ||||||||||||
Stock Option 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: | |||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | |||||||||||
Weighted average grant date fair value per share | $ | 7.05 | $ | 6.93 | $ | 7.82 | |||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 60.71 | % | 63 | % | 80 | % | |||||||
Expected lives (in years) | 4.75 | 5 | 4.75 | ||||||||||
Risk free interest rate | 0.75 | % | 0.92 | % | 0.89 | % | |||||||
Expected dividend yield | — | % | — | % | — | % | |||||||
Summary of Changes in Options Outstanding | ' | ||||||||||||
A summary of changes in the 2011 Options outstanding during 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 | 2,246 | $ | 14.09 | ||||||||||
Terminated, canceled or expired | (739 | ) | $ | 14.86 | |||||||||
Exercised | (306 | ) | $ | 13.71 | |||||||||
Balance at December 31, 2013 | 5,807 | $ | 13.09 | 6 | $ | 17 | |||||||
Exercisable options at December 31, 2013 | 983 | $ | 12.56 | 5 | $ | 3 | |||||||
2006 Options Plan [Member] | ' | ||||||||||||
Stock Option Valuation Assumptions | ' | ||||||||||||
The fair value of the 2006 Options was estimated on the date of grant using the Black-Scholes option pricing method. The assumptions used in the model are outlined in the following table: | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Weighted average grant date fair value per share | $ | 7.43 | |||||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 70 | % | |||||||||||
Expected lives (in years) | 6.25 | ||||||||||||
Risk free interest rate | 1.8 | % | |||||||||||
Expected dividend yield | — | % | |||||||||||
Summary of Changes in Options Outstanding | ' | ||||||||||||
A summary of changes in the 2006 Options outstanding during the year ended December 31, 2013 is presented below: | |||||||||||||
Stock Options | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
(in thousands) | exercise price | Remaining | Intrinsic | ||||||||||
per share | Contractual | Value | |||||||||||
Term (Years) | (in millions) | ||||||||||||
Balance at January 1, 2013 | 6,746 | $ | 6.88 | 7 | $ | 30 | |||||||
Granted | — | $ | — | ||||||||||
Terminated, canceled or expired | (98 | ) | $ | 27.07 | |||||||||
Exercised | (5,096 | ) | $ | 6.51 | |||||||||
Balance at December 31, 2013 | 1,552 | $ | 6.85 | 6 | $ | 14 | |||||||
Exercisable options at December 31, 2013 | 1,458 | $ | 6.76 | 5 | $ | 14 | |||||||
2007 Options Plan [Member] | ' | ||||||||||||
Stock Option Valuation Assumptions | ' | ||||||||||||
The fair value of the options granted was estimated on the grant date using the Black-Scholes option pricing method. The assumptions used in the model are outlined in the following table: | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Weighted average grant date fair value per share | $ | 7.43 | |||||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 70 | % | |||||||||||
Expected lives (in years) | 6.25 | ||||||||||||
Risk free interest rate | 1.8 | % | |||||||||||
Expected dividend yield | — | % | |||||||||||
Summary of Changes in Options Outstanding | ' | ||||||||||||
A summary of changes in the 2007 Options outstanding during the year ended December 31, 2013 is presented below: | |||||||||||||
Stock | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
Options | exercise price | Remaining | Intrinsic | ||||||||||
(in thousands) | per share | Contractual | Value | ||||||||||
Term (Years) | (in millions) | ||||||||||||
Balance at January 1, 2013 | 1,222 | $ | 6.93 | 7 | $ | 37 | |||||||
Granted | — | $ | — | ||||||||||
Terminated, canceled or expired | (35 | ) | $ | 7.33 | |||||||||
Exercised | (321 | ) | $ | 6.46 | |||||||||
Balance at December 31, 2013 | 866 | $ | 7.08 | 6 | $ | 8 | |||||||
Exercisable options at December 31, 2013 | 858 | $ | 7.06 | 6 | $ | 8 | |||||||
TSR Stock Options [Member] | 2011 Plan [Member] | ' | ||||||||||||
Stock Option Valuation Assumptions | ' | ||||||||||||
The assumptions, in addition to projections of market results, used in the Monte Carlo model are outlined in the following table: | |||||||||||||
Year ended December 31, 2013 | |||||||||||||
Weighted average grant date fair value per share | $ | 17.01 | |||||||||||
Weighted average assumptions used: | |||||||||||||
Expected volatility | 48.32 | % | |||||||||||
Expected lives (in years) | 2.75 | ||||||||||||
Risk free interest rate | 0.33 | % | |||||||||||
Expected dividend yield | — | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of Loss Before Income Taxes | ' | |||||||||||
Components of loss before income taxes are as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Bermuda | $ | (8 | ) | $ | (8 | ) | $ | (13 | ) | |||
United States | (388 | ) | (301 | ) | (536 | ) | ||||||
Foreign | 228 | 209 | 167 | |||||||||
Loss before income taxes | $ | (168 | ) | $ | (100 | ) | $ | (382 | ) | |||
Components of Income Tax Expense | ' | |||||||||||
Components of income tax expense are as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Current: | ||||||||||||
United States | $ | — | $ | — | $ | — | ||||||
Foreign | 22 | 23 | 19 | |||||||||
Total current | $ | 22 | $ | 23 | $ | 19 | ||||||
Deferred: | ||||||||||||
United States | $ | 44 | $ | 11 | $ | 5 | ||||||
Foreign | 14 | 14 | 8 | |||||||||
Total deferred | $ | 58 | $ | 25 | $ | 13 | ||||||
Non-current: | ||||||||||||
United States | $ | (44 | ) | $ | (10 | ) | $ | — | ||||
Foreign | 4 | (36 | ) | (4 | ) | |||||||
Total non-current | $ | (40 | ) | $ | (46 | ) | $ | (4 | ) | |||
Total expense for income taxes | $ | 40 | $ | 2 | $ | 28 | ||||||
Provision for Income Tax | ' | |||||||||||
The provision for income taxes differed from the amount computed by applying the Bermuda statutory rate of 0% to our loss before tax as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Provision at Bermuda Statutory rate of zero | $ | — | $ | — | $ | — | ||||||
Taxes on U.S. and foreign (losses) earnings which are different than the Bermuda rate | (22 | ) | (71 | ) | (136 | ) | ||||||
Valuation allowance on deferred taxes | 153 | 131 | 207 | |||||||||
Research credits | (32 | ) | (12 | ) | (32 | ) | ||||||
Foreign capital incentive | (12 | ) | (7 | ) | (10 | ) | ||||||
Other activity in unrecognized tax benefits | (45 | ) | (44 | ) | (6 | ) | ||||||
Other | (2 | ) | 5 | 5 | ||||||||
Total expense for income taxes | $ | 40 | $ | 2 | $ | 28 | ||||||
Components of Deferred Tax Assets (Liabilities) | ' | |||||||||||
Significant components of deferred tax assets (liabilities) are as follows: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Tax carryforwards | $ | 778 | $ | 703 | ||||||||
Accrued interest | 461 | 308 | ||||||||||
Depreciation | 180 | 225 | ||||||||||
Employee benefits | 86 | 102 | ||||||||||
Other capitalized items | 76 | 84 | ||||||||||
Accrued intercompany expenses | 33 | 66 | ||||||||||
Inventory | 31 | 41 | ||||||||||
Sales, bad debt and warranty reserves | 25 | 20 | ||||||||||
Share-based compensation | 23 | 44 | ||||||||||
Other, net | 17 | 23 | ||||||||||
Environmental reserves | 16 | 16 | ||||||||||
Foreign capital incentive | 13 | 25 | ||||||||||
Investments | 10 | 10 | ||||||||||
Deferred revenue | (1 | ) | 34 | |||||||||
Debt issuance costs | (14 | ) | 2 | |||||||||
Undistributed foreign earnings | (366 | ) | (406 | ) | ||||||||
Valuation allowance | (1,288 | ) | (1,156 | ) | ||||||||
Net deferred tax assets | $ | 80 | $ | 141 | ||||||||
Schedule of Net Deferred Taxes by Balance Sheet Location [Table Text Block] | ' | |||||||||||
The Company’s deferred tax positions are reflected in the following captions on the accompanying Consolidated Balance Sheets: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Other current assets | $ | 54 | $ | 86 | ||||||||
Other assets | 92 | 101 | ||||||||||
Accrued liabilities | (1 | ) | (3 | ) | ||||||||
Other liabilities | (65 | ) | (43 | ) | ||||||||
Net deferred tax assets | $ | 80 | $ | 141 | ||||||||
Total Amount of Unrecognized Tax Benefits | ' | |||||||||||
For the years ended December 31, 2013, 2012 and 2011, the total amount of unrecognized tax benefits was as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Balance as of beginning of year | $ | 168 | $ | 207 | $ | 210 | ||||||
Tax positions related to the current year: | ||||||||||||
Additions | 13 | 2 | 7 | |||||||||
Reductions | — | — | — | |||||||||
Tax positions related to prior years: | ||||||||||||
Additions | 1 | — | — | |||||||||
Reductions | (3 | ) | (22 | ) | (6 | ) | ||||||
Foreign currency translation adjustments | — | (1 | ) | (1 | ) | |||||||
Settlements | (1 | ) | (1 | ) | — | |||||||
Lapses in statutes of limitations | (46 | ) | (17 | ) | (3 | ) | ||||||
Balance as of end of year | $ | 132 | $ | 168 | $ | 207 | ||||||
Reorganization_of_Business_and1
Reorganization of Business and Other (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
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 December 31, 2013 of the employee separation and exit cost accruals established related to the 2012 Strategic Realignment: | The following table displays a roll-forward from January 1, 2012 to December 31, 2012 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 | (in millions, except headcount) | Accruals at | Charges | Adjustments | Used | Accruals at | |||||||||||||||||||||||||||||||
January 1, 2013 | 31-Dec-13 | January 1, 2012 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
Employee Separation Costs | Employee Separation Costs | |||||||||||||||||||||||||||||||||||||||||
Supply chain | $ | 6 | $ | 3 | $ | — | $ | (4 | ) | $ | 5 | Supply chain | $ | — | $ | 8 | $ | — | $ | (2 | ) | $ | 6 | |||||||||||||||||||
Selling, general and administrative | 11 | 1 | — | (10 | ) | 2 | Selling, general and administrative | — | 14 | — | (3 | ) | 11 | |||||||||||||||||||||||||||||
Research and development | 13 | — | — | (11 | ) | 2 | Research and development | — | 16 | — | (3 | ) | 13 | |||||||||||||||||||||||||||||
Total | $ | 30 | $ | 4 | $ | — | $ | (25 | ) | $ | 9 | Total | $ | — | $ | 38 | $ | — | $ | (8 | ) | $ | 30 | |||||||||||||||||||
Related headcount | 270 | 120 | — | (220 | ) | 170 | Related headcount | — | 660 | — | (390 | ) | 270 | |||||||||||||||||||||||||||||
Exit and Other Costs | $ | 2 | $ | 28 | $ | (2 | ) | $ | (20 | ) | $ | 8 | Exit and Other Costs | $ | — | 3 | — | (1 | ) | $ | 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, 2013 to December 31, 2013 of the employee separation cost accruals established related to the Reorganization of Business Program: | The following table displays a roll-forward from January 1, 2012 to December 31, 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 | (in millions, except headcount) | Accruals at | Charges | Adjustments & Currency Impact | Usage | Accruals at | |||||||||||||||||||||||||||||||
January 1, 2013 | 31-Dec-13 | January 1, 2012 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
Employee Separation Costs | Employee Separation Costs | |||||||||||||||||||||||||||||||||||||||||
Supply chain | $ | 77 | $ | — | $ | (1 | ) | $ | (59 | ) | $ | 17 | Supply chain | $ | 106 | $ | — | $ | 1 | $ | (30 | ) | $ | 77 | ||||||||||||||||||
Selling, general and administrative | 2 | — | — | — | 2 | Selling, general and administrative | 8 | — | (6 | ) | — | 2 | ||||||||||||||||||||||||||||||
Research and development | 2 | — | — | — | 2 | Research and development | 14 | — | (12 | ) | — | 2 | ||||||||||||||||||||||||||||||
Total | $ | 81 | $ | — | $ | (1 | ) | $ | (59 | ) | $ | 21 | Total | $ | 128 | $ | — | $ | (17 | ) | $ | (30 | ) | $ | 81 | |||||||||||||||||
Related headcount | 520 | — | — | (490 | ) | 30 | Related headcount | 720 | — | — | (200 | ) | 520 | |||||||||||||||||||||||||||||
Exit and Other Costs | $ | 6 | $ | 2 | $ | (2 | ) | $ | (6 | ) | $ | — | ||||||||||||||||||||||||||||||
Supplemental_EnterpriseWide_In1
Supplemental Enterprise-Wide Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Disclosure Supplemental Enterprise Wide Information Additional Information [Abstract] | ' | |||||||||||
Geographic Region Information | ' | |||||||||||
The following geographic region information includes net sales, as measured by each of our subsidiaries from which our products were sold to external customers, as well as property, plant and equipment based on physical location. Net sales by country for the years ended December 31, 2013, 2012, and 2011, as well as property, plant and equipment as of December 31, 2013 and 2012 were as follows: | ||||||||||||
Net Sales | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Hong Kong | $ | 1,191 | $ | 1,107 | $ | 1,403 | ||||||
United States | 1,097 | 1,061 | 1,126 | |||||||||
Switzerland | 974 | 929 | 1,232 | |||||||||
Malaysia | 692 | 606 | 543 | |||||||||
Japan | 202 | 227 | 245 | |||||||||
Other nations | 30 | 15 | 23 | |||||||||
Total net sales | $ | 4,186 | $ | 3,945 | $ | 4,572 | ||||||
Property, Plant and Equipment | ||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||
United States | $ | 327 | $ | 346 | ||||||||
Malaysia | 202 | 211 | ||||||||||
China | 88 | 85 | ||||||||||
Other nations | 64 | 73 | ||||||||||
Total property, plant and equipment, net | $ | 681 | $ | 715 | ||||||||
Product Design Group Revenues | ' | |||||||||||
Our product revenues are aligned into five focused product groups: Microcontrollers, Digital Networking, Automotive MCUs, Analog and Sensors and Radio Frequency. We also derive net sales from “Other” which consists of product sales associated with end markets outside of target markets, including the cellular market, intellectual property licensing and sales, foundry wafer sales to other semiconductor companies and net sales from sources other than semiconductors. Net sales by product group for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2011 | ||||||||||
Microcontrollers | $ | 826 | $ | 707 | $ | 790 | ||||||
Digital Networking | 915 | 852 | 928 | |||||||||
Automotive MCUs | 1,063 | 986 | 1,072 | |||||||||
Analog and Sensors | 736 | 722 | 785 | |||||||||
Radio Frequency | 352 | 303 | 418 | |||||||||
Other | 294 | 375 | 579 | |||||||||
Total net sales | $ | 4,186 | $ | 3,945 | $ | 4,572 | ||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Valuation and Qualifying Account Activity | ' | |||||||||||||||
The following table presents the valuation and qualifying account activity for the years ended December 31, 2013 and 2012: | ||||||||||||||||
Balance at | Additions | Deductions(1) | Balance at | |||||||||||||
beginning of | charged to | end of | ||||||||||||||
period | costs & | period | ||||||||||||||
expenses | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||
Allowance for doubtful accounts | $ | 2 | $ | 1 | $ | (1 | ) | $ | 2 | |||||||
Product and service warranties | $ | 6 | $ | — | $ | (1 | ) | $ | 5 | |||||||
As of December 31, 2012: | ||||||||||||||||
Allowance for doubtful accounts | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||
Product and service warranties | $ | 4 | $ | 2 | $ | — | $ | 6 | ||||||||
(1) Accrual usage |
Supplemental_Guarantor_Condens1
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 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 Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 5,179 | $ | 5,339 | $ | (6,573 | ) | $ | 3,945 | |||||||||||
Cost of sales | — | — | 3,827 | 5,050 | (6,573 | ) | 2,304 | |||||||||||||||||
Gross margin | — | — | 1,352 | 289 | — | 1,641 | ||||||||||||||||||
Selling, general and administrative | 7 | — | 643 | 184 | (396 | ) | 438 | |||||||||||||||||
Research and development | — | — | 471 | 271 | — | 742 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 13 | — | — | 13 | ||||||||||||||||||
Reorganization of business and other | — | — | (35 | ) | 20 | — | (15 | ) | ||||||||||||||||
Operating (loss) earnings | (7 | ) | — | 260 | (186 | ) | 396 | 463 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (32 | ) | — | — | (32 | ) | ||||||||||||||||
Other income (expense), net | 92 | 94 | (141 | ) | 405 | (981 | ) | (531 | ) | |||||||||||||||
Earnings (loss) before income taxes | 85 | 94 | 87 | 219 | (585 | ) | (100 | ) | ||||||||||||||||
Income tax (benefit) expense | — | — | (7 | ) | 9 | — | 2 | |||||||||||||||||
Net earnings (loss) | $ | 85 | $ | 94 | $ | 94 | $ | 210 | $ | (585 | ) | $ | (102 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 6,078 | $ | 6,298 | $ | (7,804 | ) | $ | 4,572 | |||||||||||
Cost of sales | — | — | 4,486 | 5,995 | (7,804 | ) | 2,677 | |||||||||||||||||
Gross margin | — | — | 1,592 | 303 | — | 1,895 | ||||||||||||||||||
Selling, general and administrative | 12 | — | 664 | 208 | (374 | ) | 510 | |||||||||||||||||
Research and development | — | — | 504 | 293 | — | 797 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 232 | — | — | 232 | ||||||||||||||||||
Reorganization of business and other | 1 | — | 58 | 23 | — | 82 | ||||||||||||||||||
Operating (loss) earnings | (13 | ) | — | 134 | (221 | ) | 374 | 274 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt, net | — | — | (97 | ) | — | — | (97 | ) | ||||||||||||||||
Other (expense) income, net | (306 | ) | (306 | ) | (332 | ) | 386 | (1 | ) | (559 | ) | |||||||||||||
(Loss) earnings before income taxes | (319 | ) | (306 | ) | (295 | ) | 165 | 373 | (382 | ) | ||||||||||||||
Income tax expense | — | — | 14 | 14 | — | 28 | ||||||||||||||||||
Net (loss) earnings | $ | (319 | ) | $ | (306 | ) | $ | (309 | ) | $ | 151 | $ | 373 | $ | (410 | ) | ||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | 5,363 | $ | 5,482 | $ | (6,659 | ) | $ | 4,186 | |||||||||||
Cost of sales | — | — | 3,885 | 5,173 | (6,659 | ) | 2,399 | |||||||||||||||||
Gross margin | — | — | 1,478 | 309 | — | 1,787 | ||||||||||||||||||
Selling, general and administrative | 7 | — | 640 | 194 | (377 | ) | 464 | |||||||||||||||||
Research and development | — | — | 488 | 267 | — | 755 | ||||||||||||||||||
Amortization expense for acquired intangible assets | — | — | 13 | — | — | 13 | ||||||||||||||||||
Reorganization of business and other | — | — | 17 | 7 | — | 24 | ||||||||||||||||||
Operating (loss) earnings | (7 | ) | — | 320 | (159 | ) | 377 | 531 | ||||||||||||||||
Loss on extinguishment or modification of long-term debt | — | — | (217 | ) | — | — | (217 | ) | ||||||||||||||||
Other income (expense), net | 218 | 220 | 119 | 387 | (1,426 | ) | (482 | ) | ||||||||||||||||
Earnings (loss) before income taxes | 211 | 220 | 222 | 228 | (1,049 | ) | (168 | ) | ||||||||||||||||
Income tax expense | — | — | 2 | 38 | — | 40 | ||||||||||||||||||
Net earnings (loss) | $ | 211 | $ | 220 | $ | 220 | $ | 190 | $ | (1,049 | ) | $ | (208 | ) | ||||||||||
Schedule of Supplemental Condensed Consolidated Statements of Comprehensive Earnings (Loss) | ' | |||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 211 | $ | 220 | $ | 220 | $ | 190 | $ | (1,049 | ) | $ | (208 | ) | ||||||||||
Other comprehensive (loss) earnings, net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized losses arising during the period | — | — | (8 | ) | — | — | (8 | ) | ||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains arising during the period | — | — | 44 | 3 | — | 47 | ||||||||||||||||||
Amortization of actuarial (losses) gains included in net earnings (loss) | — | — | (1 | ) | 3 | — | 2 | |||||||||||||||||
Other comprehensive (loss) earnings | — | — | 35 | — | — | 35 | ||||||||||||||||||
Comprehensive earnings (loss) | $ | 211 | $ | 220 | $ | 255 | $ | 190 | $ | (1,049 | ) | $ | (173 | ) | ||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive (Loss) Earnings | ||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) earnings | $ | (319 | ) | $ | (306 | ) | $ | (309 | ) | $ | 151 | $ | 373 | $ | (410 | ) | ||||||||
Other comprehensive earnings (loss), net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized losses arising during the period | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||
Reclassification adjustment for items included in net (loss) earnings | — | — | — | — | — | — | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Gains (losses) arising during the period | — | — | 18 | (11 | ) | — | 7 | |||||||||||||||||
Amortization of actuarial gains included in net (loss) earnings | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings (loss) | — | — | 14 | (16 | ) | — | (2 | ) | ||||||||||||||||
Comprehensive (loss) earnings | $ | (319 | ) | $ | (306 | ) | $ | (295 | ) | $ | 135 | $ | 373 | $ | (412 | ) | ||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Earnings (Loss) | ||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net earnings (loss) | $ | 85 | $ | 94 | $ | 94 | $ | 210 | $ | (585 | ) | $ | (102 | ) | ||||||||||
Other comprehensive earnings (loss), net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ||||||||||||||||||
Derivative instrument adjustments: | ||||||||||||||||||||||||
Unrealized gains arising during the period | — | — | 6 | — | — | 6 | ||||||||||||||||||
Reclassification adjustment for items included in net earnings (loss) | — | — | 1 | — | — | 1 | ||||||||||||||||||
Post-retirement adjustments: | ||||||||||||||||||||||||
Losses arising during the period | — | — | (6 | ) | (12 | ) | — | (18 | ) | |||||||||||||||
Amortization of actuarial gains included in net earnings (loss) | — | — | — | — | — | — | ||||||||||||||||||
Other comprehensive earnings (loss) | — | — | 1 | (12 | ) | — | (11 | ) | ||||||||||||||||
Comprehensive earnings (loss) | $ | 85 | $ | 94 | $ | 95 | $ | 198 | $ | (585 | ) | $ | (113 | ) | ||||||||||
Schedule of Supplemental Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | — | $ | 235 | $ | 511 | $ | — | $ | 747 | ||||||||||||
Inter-company receivable | 169 | — | 445 | 504 | (1,118 | ) | — | |||||||||||||||||
Accounts receivable, net | — | — | 91 | 297 | — | 388 | ||||||||||||||||||
Inventory, net | — | — | 276 | 457 | — | 733 | ||||||||||||||||||
Other current assets | — | — | 74 | 53 | — | 127 | ||||||||||||||||||
Total current assets | 170 | — | 1,121 | 1,822 | (1,118 | ) | 1,995 | |||||||||||||||||
Property, plant and equipment, net | — | — | 327 | 354 | — | 681 | ||||||||||||||||||
Investment in affiliates | (4,721 | ) | (4,721 | ) | 1,364 | — | 8,078 | — | ||||||||||||||||
Intangible assets, net | — | — | 52 | — | — | 52 | ||||||||||||||||||
Inter-company note receivable | — | 118 | — | 161 | (279 | ) | — | |||||||||||||||||
Other assets, net | — | — | 156 | 163 | — | 319 | ||||||||||||||||||
Total Assets | $ | (4,551 | ) | $ | (4,603 | ) | $ | 3,020 | $ | 2,500 | $ | 6,681 | $ | 3,047 | ||||||||||
Liabilities and Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Current portion of long-term debt and capital lease obligations | $ | — | $ | — | $ | 93 | $ | — | $ | — | $ | 93 | ||||||||||||
Inter-company payable | — | — | 565 | 553 | (1,118 | ) | — | |||||||||||||||||
Accounts payable | — | — | 241 | 157 | — | 398 | ||||||||||||||||||
Accrued liabilities and other | — | — | 245 | 126 | — | 371 | ||||||||||||||||||
Total current liabilities | — | — | 1,144 | 836 | (1,118 | ) | 862 | |||||||||||||||||
Long-term debt | — | — | 6,386 | — | — | 6,386 | ||||||||||||||||||
Inter-company note payable | 43 | 118 | — | 118 | (279 | ) | — | |||||||||||||||||
Other liabilities | — | — | 211 | 182 | 393 | |||||||||||||||||||
Total liabilities | 43 | 118 | 7,741 | 1,136 | (1,397 | ) | 7,641 | |||||||||||||||||
Total shareholders’ (deficit) equity | (4,594 | ) | (4,721 | ) | (4,721 | ) | 1,364 | 8,078 | (4,594 | ) | ||||||||||||||
Total Liabilities and Shareholders’ (Deficit) Equity | $ | (4,551 | ) | $ | (4,603 | ) | $ | 3,020 | $ | 2,500 | $ | 6,681 | $ | 3,047 | ||||||||||
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 | ||||||||||
Schedule of Supplemental Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow (used for) provided by operating activities | $ | — | $ | (1 | ) | $ | 326 | $ | 228 | $ | (203 | ) | $ | 350 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (58 | ) | (65 | ) | — | (123 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 1 | 18 | — | 19 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (32 | ) | (41 | ) | — | (73 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | 1 | — | — | 1 | ||||||||||||||||||
Inter-company loans and capital transactions | (28 | ) | (30 | ) | 37 | (9 | ) | 30 | — | |||||||||||||||
Cash flow used for investing activities | (28 | ) | (30 | ) | (51 | ) | (97 | ) | 30 | (176 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (733 | ) | (1 | ) | — | (734 | ) | |||||||||||||||
Debt issuance proceeds, net of deferred financing costs | — | — | 481 | — | — | 481 | ||||||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 21 | — | — | — | — | 21 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | 6 | 31 | 25 | (235 | ) | 173 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 27 | 31 | (227 | ) | (236 | ) | 173 | (232 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (1 | ) | — | 48 | (108 | ) | — | (61 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 2 | — | 56 | 714 | — | 772 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 1 | $ | — | $ | 104 | $ | 606 | $ | — | $ | 711 | ||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by operating activities | $ | 9 | $ | 2 | $ | 104 | $ | 81 | $ | (97 | ) | $ | 99 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (83 | ) | (52 | ) | — | (135 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment and assets held for sale | — | — | 55 | 13 | — | 68 | ||||||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | 3 | — | — | 3 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (36 | ) | (26 | ) | — | (62 | ) | |||||||||||||||
Contribution of proceeds from IPO of common shares and over-allotment exercise, net of offering costs | (838 | ) | (838 | ) | — | — | 1,676 | — | ||||||||||||||||
Proceeds from property and casualty insurance recoveries | — | — | — | 37 | — | 37 | ||||||||||||||||||
Inter-company loan receivable and dividends | — | — | (1 | ) | (10 | ) | 11 | — | ||||||||||||||||
Cash flow used for investing activities | (838 | ) | (838 | ) | (62 | ) | (38 | ) | 1,687 | (89 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (1,850 | ) | (3 | ) | — | (1,853 | ) | |||||||||||||||
Debt issuance proceeds, net of deferred financing costs | — | — | 724 | — | — | 724 | ||||||||||||||||||
Proceeds from IPO of common shares and over-allotment exercise, net of offering costs | 838 | — | — | — | — | 838 | ||||||||||||||||||
Receipt of contribution of net proceeds from IPO of common shares and over-allotment exercise | — | 838 | 838 | — | (1,676 | ) | — | |||||||||||||||||
Other | 1 | — | — | — | — | 1 | ||||||||||||||||||
Inter-company loan payable, dividends and capital contributions | (8 | ) | (2 | ) | — | (76 | ) | 86 | — | |||||||||||||||
Cash flow provided by (used for) financing activities | 831 | 836 | (288 | ) | (79 | ) | (1,590 | ) | (290 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 9 | — | 9 | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 2 | — | (246 | ) | (27 | ) | — | (271 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 302 | 741 | — | 1,043 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 2 | $ | — | $ | 56 | $ | 714 | $ | — | $ | 772 | ||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Freescale Ltd. | Guarantors | Freescale Inc. | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Cash flow provided by operating activities | $ | 40 | $ | — | $ | 235 | $ | 465 | $ | (419 | ) | $ | 321 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | — | — | (68 | ) | (83 | ) | — | (151 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 12 | — | 12 | ||||||||||||||||||
Payments for purchased licenses and other assets | — | — | (30 | ) | (40 | ) | — | (70 | ) | |||||||||||||||
Sales and purchases of short-term and other investments, net | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||
Inter-company loans and capital transactions | (102 | ) | (106 | ) | 26 | (4 | ) | 186 | — | |||||||||||||||
Cash flow used for investing activities | (102 | ) | (106 | ) | (73 | ) | (115 | ) | 186 | (210 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Retirements of and payments for long-term debt and capital lease obligations | — | — | (5,062 | ) | — | — | (5,062 | ) | ||||||||||||||||
Debt issuance proceeds, net of deferred financing costs | — | — | 4,929 | — | — | 4,929 | ||||||||||||||||||
Proceeds from stock option exercises and ESPP share purchases | 62 | — | — | — | — | 62 | ||||||||||||||||||
Inter-company loans, dividends and capital transactions | — | 106 | 102 | (441 | ) | 233 | — | |||||||||||||||||
Cash flow provided by (used for) financing activities | 62 | 106 | (31 | ) | (441 | ) | 233 | (71 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | — | 131 | (95 | ) | — | 36 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 1 | — | 104 | 606 | — | 711 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 1 | $ | — | $ | 235 | $ | 511 | $ | — | $ | 747 | ||||||||||||
Quarterly_and_Other_Financial_1
Quarterly and Other Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly and Other Financial Data (unaudited) | ' | ||||||||||||||||
2013 Operating Results (in millions, except per share data) | 4th | 3rd | 2nd | 1st | |||||||||||||
Net sales | $ | 1,082 | $ | 1,085 | $ | 1,038 | $ | 981 | |||||||||
Gross margin | $ | 475 | $ | 473 | $ | 441 | $ | 398 | |||||||||
Operating earnings | $ | 145 | $ | 157 | $ | 125 | $ | 104 | |||||||||
Net (loss) earnings | $ | (118 | ) | $ | 23 | $ | (65 | ) | $ | (48 | ) | ||||||
Net (loss) earnings per common share: | |||||||||||||||||
Basic | $ | (0.46 | ) | $ | 0.09 | $ | (0.25 | ) | $ | (0.19 | ) | ||||||
Diluted(1) | $ | (0.46 | ) | $ | 0.09 | $ | (0.25 | ) | $ | (0.19 | ) | ||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 258 | 258 | 255 | 252 | |||||||||||||
Diluted | 262 | 261 | 259 | 256 | |||||||||||||
2012 Operating Results (in millions, except per share data) | 4th | 3rd | 2nd | 1st | |||||||||||||
Net sales | $ | 957 | $ | 1,009 | $ | 1,029 | $ | 950 | |||||||||
Gross margin | $ | 375 | $ | 424 | $ | 440 | $ | 402 | |||||||||
Operating earnings | $ | 56 | $ | 127 | $ | 112 | $ | 168 | |||||||||
Net loss | $ | (35 | ) | $ | (24 | ) | $ | (34 | ) | $ | (9 | ) | |||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.10 | ) | $ | (0.14 | ) | $ | (0.04 | ) | |||||
Diluted(1) | $ | (0.14 | ) | $ | (0.10 | ) | $ | (0.14 | ) | $ | (0.04 | ) | |||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 249 | 249 | 248 | 247 | |||||||||||||
Diluted | 251 | 251 | 250 | 251 | |||||||||||||
(1) No dilutive securities have been included in the diluted net loss per share calculation in periods when a net loss was incurred. |
Overview_and_Basis_of_Presenta2
Overview and Basis of Presentation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Revenue related to Licensing Agreements | 5.00% | 5.00% | 3.00% |
Percentage of sales revenue derived from distributors | 25.00% | 23.00% | 23.00% |
Maturity Period Of Cash Equivalents | '3 months | ' | ' |
Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | '2 years | ' | ' |
Minimum [Member] | Buildings and improvements [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful life Of Machinery and Equipment | '5 years | ' | ' |
Minimum [Member] | Machinery And Equipment [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful life Of Machinery and Equipment | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | '10 years | ' | ' |
Maximum [Member] | Buildings and improvements [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful life Of Machinery and Equipment | '40 years | ' | ' |
Maximum [Member] | Machinery And Equipment [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful life Of Machinery and Equipment | '17 years | ' | ' |
IPO [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Shares Issued During Period | ' | ' | 49,000,000 |
Offering Price Per share | ' | ' | 18 |
Schedule_of_Other_Expenses_Net
Schedule of Other Expenses, Net (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Nonoperating Income (Expense) [Abstract] | ' | ' | ' |
Interest expense | ($490) | ($519) | ($572) |
Interest income | 7 | 9 | 9 |
Interest expense, net | -483 | -510 | -563 |
Other, net | 1 | -21 | 4 |
Other expense, net | ($482) | ($531) | ($559) |
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 | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 14 | 12 | |||||||||||
Net loss | ($118) | $23 | ($65) | ($48) | ($35) | ($24) | ($34) | ($9) | ($208) | ($102) | ($410) | |||||||||||
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 258 | [1] | 258 | [1] | 255 | [1] | 252 | [1] | 249 | [1] | 249 | [1] | 248 | [1] | 247 | [1] | 256 | [1] | 248 | [1] | 226 | [1] |
Add: Incremental shares for dilutive effect of warrants | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | [2] | 0 | [2] | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 262 | 261 | 259 | 256 | 251 | 251 | 250 | 251 | 259 | 251 | 227 | |||||||||||
Basic net loss per share | ($0.46) | $0.09 | ($0.25) | ($0.19) | ($0.14) | ($0.10) | ($0.14) | ($0.04) | ($0.81) | ($0.41) | ($1.82) | |||||||||||
Diluted net loss per share | ($0.46) | [3] | $0.09 | [3] | ($0.25) | [3] | ($0.19) | [3] | ($0.14) | [3] | ($0.10) | [3] | ($0.14) | [3] | ($0.04) | [3] | ($0.81) | [3] | ($0.41) | [3] | ($1.82) | [3] |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Add: Incremental shares for dilutive effect of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 2 | [4] | 2 | [4] | 1 | [4] | ||||||||
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Add: Incremental shares for dilutive effect of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 1 | [5] | 1 | [5] | 0 | [5] | ||||||||
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | 1 | |||||||||||
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0 | 1 | |||||||||||
Warrant [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 10 | 10 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 36.12 | ' | ' | ' | 36.12 | ' | ' | ' | 36.12 | 36.12 | 36.12 | |||||||||||
[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 calculations, as a net loss was incurred in all periods presented | |||||||||||||||||||||
[4] | Stock options to purchase an aggregate of 4 million, 4 million and 1 million common shares that were outstanding during 2013, 2012 and 2011, 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 both 2013 and 2011 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 unvested RSUs that were anti-dilutive in 2012. |
Schedule_of_Inventory_Detail
Schedule of Inventory (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Inventory, Work in Process and Raw Materials, Net of Reserves | $497 | $578 |
Finished goods | 236 | 219 |
Inventory, net | $733 | $797 |
Schedule_of_Other_Current_Asse
Schedule of Other Current Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Disclosure Other Financial Data Other Current Assets [Abstract] | ' | ' |
Deferred income taxes | $54 | $86 |
Prepaid expenses | 27 | 28 |
Miscellaneous receivables | 19 | 20 |
Income tax receivable | 6 | 10 |
Other | 21 | 22 |
Other current assets | $127 | $166 |
Schedule_of_Property_Plant_and
Schedule of Property, Plant and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment, Gross | $3,462 | $3,402 |
Less accumulated depreciation and amortization | -2,781 | -2,687 |
Property, Plant and Equipment, Net | 681 | 715 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment, Gross | 56 | 56 |
Buildings and improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment, Gross | 862 | 854 |
Machinery And Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment, Gross | 2,520 | 2,471 |
Assets not yet placed in service [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total Property, Plant and Equipment, Gross | $24 | $21 |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized Cost | $184 | $183 |
Accumulated Amortization | 132 | 119 |
Licensing Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized Cost | 40 | 39 |
Accumulated Amortization | 25 | 25 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized Cost | 144 | 144 |
Accumulated Amortization | $107 | $94 |
Schedule_of_Other_Assets_Net_D
Schedule of Other Assets, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Other Assets [Line Items] | ' | ' |
Deferred financing costs, net | $102 | $106 |
Deferred income taxes | 92 | 101 |
Tool and die, net | 56 | 53 |
Other long-term receivables | 34 | 43 |
Income tax receivable | 6 | 10 |
Other | 6 | 5 |
Other assets, net | 319 | 334 |
Long Term [Member] | ' | ' |
Schedule Of Other Assets [Line Items] | ' | ' |
Income tax receivable | 11 | 7 |
Asia [Member] | ' | ' |
Schedule Of Other Assets [Line Items] | ' | ' |
Asia land leases | $18 | $19 |
Schedule_of_Accrued_Liabilitie
Schedule of Accrued Liabilities and Other (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Employee compensation | $150 | $120 |
Interest payable | 75 | 103 |
Taxes other than income taxes | 17 | 9 |
Deferred revenue | 1 | 101 |
Other | 97 | 103 |
Accrued liabilities and other | 371 | 543 |
Short Term [Member] | ' | ' |
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Severance | $31 | $107 |
Schedule_of_Other_Liabilities_
Schedule of Other Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Disclosure Other Financial Data Other Liabilities [Abstract] | ' | ' |
Retiree healthcare obligation | $117 | $157 |
Pension obligations | 107 | 102 |
Deferred income taxes | 65 | 43 |
Environmental reserves | 39 | 39 |
Income taxes payable | 28 | 71 |
Other | 37 | 43 |
Total other liabilities | $393 | $455 |
Schedule_of_Accumulated_Other_
Schedule of Accumulated Other Comprehensive Earnings (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives, Beginning Balance | $2 | ($5) | ($1) | ' |
Unrealized Gain on Postretirement Obligation, Beginning Balance | -13 | 5 | -2 | ' |
Foreign Currency Translation, Beginning Balance | 25 | 25 | 30 | ' |
Unrealized Gain (Loss) on Derivatives, Current period net change | 8 | -7 | 4 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 49 | -18 | 7 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 6 | 0 | 5 | ' |
Unrealized Gain (Loss) on Derivatives, Ending Balance | -6 | 2 | -5 | ' |
Unrealized Gain on Postretirement Obligation, Ending Balance | 36 | -13 | 5 | ' |
Foreign Currency Translation, Ending Balance | 19 | 25 | 25 | ' |
Other comprehensive earnings (loss) | 35 | -11 | -2 | ' |
Accumulated other comprehensive earnings | $49 | $14 | $25 | $27 |
Other_Financial_Data_Additiona
Other Financial Data - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Licenses Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $203 | $191 | $145 |
Deferred revenue recognized | ' | ' | ' | ' | ' | ' | ' | ' | 164 | 136 | ' |
Total Consideration to be received from patent license agreements | 304 | ' | ' | ' | ' | ' | ' | ' | 304 | ' | ' |
Proceeds from License Fees Received | ' | ' | ' | ' | ' | ' | ' | ' | 78 | 198 | ' |
Future Cash for IP Agreement | 28 | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' |
Future Cash for IP Agreement, Reception Term | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' |
Future Cash for IP Agreement, next 12 months | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Deferred revenue | 1 | ' | ' | ' | 101 | ' | ' | ' | 1 | 101 | ' |
Loss on extinguishment or modification of long-term debt, net | ' | ' | ' | ' | ' | ' | ' | ' | -217 | -32 | -97 |
Cash paid for interest | ' | ' | ' | ' | ' | ' | ' | ' | 497 | 511 | 524 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -21 | 4 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 14,000,000 | 12,000,000 |
Reserves for inventory | 61 | ' | ' | ' | 58 | ' | ' | ' | 61 | 58 | ' |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 181 | 179 | 393 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 1 | ' | ' | ' | 6 | ' | ' | ' | 1 | 6 | ' |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 20 | ' | ' | ' | 35 | ' | ' | ' | 20 | 35 | ' |
Intangible assets, net | 52 | ' | ' | ' | 64 | ' | ' | ' | 52 | 64 | ' |
Amortization expense for acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13 | 232 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 25 | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 20 | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 15 | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' |
Accelerated Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' |
Basic net loss per share | ($0.46) | $0.09 | ($0.25) | ($0.19) | ($0.14) | ($0.10) | ($0.14) | ($0.04) | ($0.81) | ($0.41) | ($1.82) |
Stockholders' Equity, Reverse Stock Split | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1-for-5.16 |
Common stock, par value | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | $0.01 | $0.01 | ' |
Capital Units, Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 |
Common Stock, Shares Authorized | 900,000,000 | ' | ' | ' | 900,000,000 | ' | ' | ' | 900,000,000 | 900,000,000 | 900,000,000 |
Preferred Stock, Shares Authorized | 100,000,000 | ' | ' | ' | 100,000,000 | ' | ' | ' | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred Stock, Par or Stated Value Per Share | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | $0.01 | $0.01 | $0.01 |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License supply agreement period | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License supply agreement period | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' |
Warrant [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | 10,000,000 |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | 4,000,000 | 1,000,000 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 0 | 1,000,000 |
Change Par Value From [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.03 |
Change Par Value To [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 |
Historical Par Value [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 |
Intangible Assets [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic net loss per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.04 | ' |
Intangible Assets [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense for acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | $27 | $29 | $248 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | $347 | $480 | ||
Liabilities Fair Value | 14 | 18 | ||
Money Market Mutual Funds [Member] | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 5 | [1] | 192 | [1] |
Time Deposits [Member] | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 339 | [1] | 285 | [1] |
Foreign Exchange Contract [Member] | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 2 | [2] | 3 | [2] |
Liabilities Fair Value | 5 | [2] | 1 | [2] |
Interest Rate Swap [Member] | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 1 | [3] | ' | |
Liabilities Fair Value | 6 | [3] | 17 | [3] |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 344 | 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 | 5 | [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 | 339 | [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) | Interest Rate Swap [Member] | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 0 | [3] | ' | |
Liabilities Fair Value | 0 | [3] | 0 | [3] |
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 3 | 3 | ||
Liabilities Fair Value | 14 | 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 | 2 | [2] | 3 | [2] |
Liabilities Fair Value | 5 | [2] | 1 | [2] |
Significant Other Observable Inputs (Level 2) | Interest Rate Swap [Member] | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Asset Fair Value | 1 | [3] | ' | |
Liabilities Fair Value | 6 | [3] | 17 | [3] |
Commodity Contract [Member] | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Liabilities Fair Value | 3 | [4] | 1 | [4] |
Commodity Contract [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Liabilities Fair Value | 0 | [4] | 0 | [4] |
Commodity Contract [Member] | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Liabilities Fair Value | $3 | [4] | $1 | [4] |
[1] | Time deposits and money market mutual funds are reported as cash and cash equivalents. The decline in funds invested in money market mutual funds from December 31, 2012 to December 31, 2013 was largely due to a shift of cash from lower yielding funds to bank accounts to take advantage of the fee offset obtained on bank account holdings. | |||
[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. |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Fair value of long term debt | $6,566 | $6,562 |
Long-term Debt, Current Maturities | $93 | $5 |
Carrying_Value_of_Longterm_Deb
Carrying Value of Long-term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | $6,479 | $6,380 | ||
Less: current maturities | -93 | -5 | ||
Total long-term debt | 6,386 | 6,375 | ||
Extended Maturity Term Loan [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 0 | 2,215 | ||
2012 Term Loan due 2019 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 0 | 491 | ||
2016 Term Loan [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 347 | 0 | ||
Basis spread variable rate of interest per annum (percent) | 3.75% | ' | ||
Debt Instrument, Interest Rate at Period End | 4.75% | ' | ||
2020 Term Loan [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 2,349 | 0 | ||
Basis spread variable rate of interest per annum (percent) | 3.75% | ' | ||
Debt Instrument, Interest Rate at Period End | 5.00% | ' | ||
2021 Term Loan [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 790 | 0 | ||
Basis spread variable rate of interest per annum (percent) | 3.75% | ' | ||
Debt Instrument, Interest Rate at Period End | 5.00% | ' | ||
Replacement Revolver [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 0 | 0 | ||
Senior Secured 10.125% Notes Due 2018 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 0 | 663 | ||
Interest rate of debt instrument (percent) | 10.13% | ' | ||
Senior Secured 9.25% notes due 2018 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 0 | 1,380 | ||
Interest rate of debt instrument (percent) | 9.25% | ' | ||
Senior Secured 5.00% Notes Due 2021 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 500 | 0 | ||
Interest rate of debt instrument (percent) | 5.00% | ' | ||
Senior Secured 6.0% Notes Due 2022 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 960 | 0 | ||
Interest rate of debt instrument (percent) | 6.00% | ' | ||
Senior unsecured floating rate notes due 2014 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 57 | [1] | 57 | [1] |
Variable rate (percent) | 0.24% | ' | ||
Basis spread variable rate of interest per annum (percent) | 3.88% | ' | ||
Senior Unsecured 8.875% Notes Due 2014 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 0 | 98 | ||
Interest rate of debt instrument (percent) | 8.88% | ' | ||
Senior unsecured 10.75% notes due 2020 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 473 | 473 | ||
Interest rate of debt instrument (percent) | 10.75% | ' | ||
Senior Unsecured 8.05% Notes due 2020 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total Debt | 739 | 739 | ||
Interest rate of debt instrument (percent) | 8.05% | ' | ||
Senior subordinated 10.125% notes due 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total 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 (0.24% in effect on December 31, 2013) plus 3.875% per annum. |
Debt_Additional_Information_De
Debt Additional Information (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 21-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 11, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |||
First Quarter 2013 Refinancing Transaction [Member] | Senior Secured 6.0% Notes Due 2022 [Member] | Senior Secured 6.0% Notes Due 2022 [Member] | Senior Secured 6.0% Notes Due 2022 [Member] | 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 prior to November 15, 2016 [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] | 2020 Term Loan [Member] | 2020 Term Loan [Member] | 2020 Term Loan [Member] | 2021 Term Loan [Member] | 2021 Term Loan [Member] | 2021 Term Loan [Member] | Senior Notes [Member] | 2012 Term Loan due 2019 [Member] | 2012 Term Loan due 2019 [Member] | 2012 Term Loan due 2019 [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 floating rate notes due 2014 [Member] | Senior unsecured floating rate notes due 2014 [Member] | Redemption prior to May 15, 2016 [Member] | Senior Unsecured 10.75% Notes [Member] | Senior Unsecured 8.05% Notes due 2020 [Member] | Senior Unsecured 8.05% Notes due 2020 [Member] | Senior unsecured 10.75% notes due 2020 [Member] | Senior unsecured 10.75% notes due 2020 [Member] | Senior subordinated 10.125% notes due 2016 [Member] | Senior subordinated 10.125% notes due 2016 [Member] | Fourth Quarter 2013 Refinancing Transaction [Member] | Fourth Quarter 2013 Refinancing Transaction [Member] | Fourth Quarter 2013 Refinancing Transaction [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] | Second Quarter 2013 Refinancing Transaction [Member] | Second Quarter 2013 Refinancing Transaction [Member] | First Quarter 2013 Refinancing Transaction [Member] | First Quarter 2013 Refinancing Transaction [Member] | First Quarter 2013 Refinancing Transaction [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||||
Senior Secured 9.25% notes due 2018 [Member] | Senior Secured 9.25% notes due 2018 [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | 2016 Term Loan [Member] | Senior Secured 9.25% notes due 2018 [Member] | Senior Secured 10.125% Notes Due 2018 [Member] | Extended Maturity Term Loan [Member] | 2012 Term Loan due 2019 [Member] | Senior Secured 6.0% Notes Due 2022 [Member] | Senior Secured 5.00% Notes Due 2021 [Member] | Senior Unsecured 10.75% Notes [Member] | Senior Unsecured 8.05% Notes due 2020 [Member] | Senior Subordinated Notes [Member] | Senior Secured 6.0% Notes Due 2022 [Member] | Senior Secured 5.00% Notes Due 2021 [Member] | Senior Unsecured 10.75% Notes [Member] | Senior Unsecured 8.05% Notes due 2020 [Member] | Senior Subordinated Notes [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Face amount | ' | ' | ' | ' | ' | $960,000,000 | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | $350,000,000 | ' | $2,373,000,000 | $2,390,000,000 | ' | $798,000,000 | $800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate of debt instrument (percent) | ' | ' | ' | ' | 6.00% | ' | ' | 5.00% | ' | ' | ' | 10.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.25% | ' | 8.88% | ' | ' | ' | ' | ' | 8.05% | ' | 10.75% | ' | 10.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 884,000,000 | ' | 221,000,000 | ' | 496,000,000 | ' | 442,000,000 | ' | 2,200,000,000 | 496,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Call premium on extinguished debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000,000 | ' | 65,000,000 | ' | ' | ' | 53,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cash paid for interest | 497,000,000 | 511,000,000 | 524,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | 24,000,000 | ' | ' | ' | 12,000,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Modification of debt, difference in cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Payments of Debt Issuance Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | ' | ' | 10,000,000 | ' | ' | ' | 7,000,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | 23,000,000 | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt | 6,479,000,000 | 6,380,000,000 | ' | ' | 960,000,000 | ' | 0 | 500,000,000 | ' | 0 | ' | 0 | 663,000,000 | 347,000,000 | ' | 0 | 2,349,000,000 | ' | 0 | 790,000,000 | ' | 0 | 2,993,000,000 | 0 | ' | 491,000,000 | 0 | 0 | 0 | 1,380,000,000 | 0 | 98,000,000 | 57,000,000 | [1] | 57,000,000 | [1] | ' | ' | 739,000,000 | 739,000,000 | 473,000,000 | 473,000,000 | 264,000,000 | 264,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment or modification of long-term debt | 217,000,000 | 32,000,000 | 97,000,000 | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | 60,000,000 | ' | ' | ' | 59,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amount issued percentage of par (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | ' | ' | 99.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair value of long term debt | 6,566,000,000 | 6,562,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | 2,360,000,000 | ' | ' | 792,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Original issuance discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt, Weighted Average Interest Rate | 0.005 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Interest Rate Increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.005 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basis spread variable rate of interest per annum (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | ' | ' | 3.75% | ' | ' | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percentage of debt instrument floor rate in relation to variable spread rate (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | 1.25% | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75% | ' | ' | 5.00% | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Unamortized Discount (Premium), Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 409,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amount of letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'the federal funds rate, plus one-half of 1% | ' | ' | 'the federal funds rate, plus one-half of 1% | ' | ' | 'the federal funds rate, plus one-half of 1% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Call Premium Redemption Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | 1.01 | ' | ' | 1.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Description of Guarantees | ' All obligations under the Credit Facility, and the guarantees of those obligations, are secured by substantially all the following assets of Freescale Inc. and each guarantor, subject to certain exceptions: (i)Â a pledge of 100% of the capital stock of each of Holdings III, Holdings IV and Holdings V, a pledge of 100% of the capital stock of Freescale Inc., 100% of the capital stock of our subsidiary SigmaTel, Inc. and 65% of the voting stock (and 100% of the non-voting stock) of each of our material wholly owned foreign subsidiaries, in each case that are directly owned by Freescale Inc. or one of the guarantors; and (ii)Â a security interest in, and mortgages on, substantially all tangible and intangible assets of each of Holdings IV, Holdings V and Freescale Inc. In addition, in the event that Freescale Inc. (i)Â transfers foreign subsidiaries to, or forms new foreign subsidiaries under, Holdings III or another foreign entity (but not any entity directly or indirectly owned by a U.S. entity) or (ii)Â transfers assets to such foreign subsidiaries, Freescale Inc. will be required to pledge 100% of the voting stock of those wholly owned foreign subsidiaries so transferred or formed, and such foreign subsidiaries would be required to guarantee our obligations under the Credit Agreement. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Prepayment Requirements | 'These potential prepayment requirements include (i) 50% of annual excess cash flow as defined in the Credit Agreement, subject to an incremental, full step-down based upon attaining certain leverage ratios; (ii) 100% of net cash proceeds of all non-ordinary course assets sales or other dispositions by Holdings III and its restricted subsidiaries if the net cash proceeds are not reinvested in the business; and (iii) 100% of the net proceeds of any issuance or incurrence of debt by Holdings III or any of its restricted subsidiaries, other than debt permitted under our Credit Facility. The foregoing mandatory prepayments will be applied ratably to each class of term loan then outstanding and will be applied to scheduled quarterly installments of such term loans in direct order of maturity. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Subjective Acceleration Clause | ' | ' | ' | ' | ' 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 | ' | ' | 'may require Freescale Inc. 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'may require Freescale Inc. to repurchase all or part of their notes at 101% of the principal balance, plus accrued and unpaid interest | ' may require Freescale Inc. to repurchase all or part of their 8.05% Unsecured Notes at 101% of the principal balance, plus accrued and unpaid interest. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument Redemption Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 | 1 | 1 | 1.045 | 1.0375 | 1.05375 | 1.04025 | 1.01688 | ||
Portion of Notes Available for Redemption with Equity Proceeds | ' | ' | ' | ' | 0.35 | ' | ' | 0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Redemption Price As Percentage Of Principal Amount | ' | ' | ' | ' | ' | ' | ' | 105.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percentage of outstanding balance required for quarterly payments (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Required total leverage ratio | 6.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Required senior secured first lien leverage ratio | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Required fixed charge coverage ratio | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Required secured debt ratio | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total leverage ratio | 6.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Senior secured first lien leverage ratio | 4.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fixed charge coverage ratio | 2.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Secured debt ratio | 5.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of principal in next rolling twelve months | 93,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of principal in year two | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of principal in year three | 637,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of principal in year four | 32,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of principal in year five | 32,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of principal after year five | $5,682,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | The senior unsecured floating rate notes due 2014 bear interest at a rate, reset quarterly, equal to three month LIBOR (0.24% in effect on December 31, 2013) plus 3.875% per annum. |
Risk_Management_Additional_Inf
Risk Management - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | Malaysia, Ringgits | Malaysia, Ringgits | Malaysia, Ringgits | Malaysia, Ringgits | Japan, Yen | Japan, Yen | Japan, Yen | Japan, Yen | India, Rupees | India, Rupees | Cash Flow Hedging [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||
Cost of Sales [Member] | Cost of Sales [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Other Expense [Member] | Other Expense [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | |||||||||||||||||||||||
oz | oz | ||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency exchange contracts not designated as hedging instruments | $112 | $217 | ' | ' | ' | ' | $30 | $23 | ' | ' | ' | ' | ' | ' | $29 | $104 | ' | ' | $16 | $26 | ' | ' | $15 | $28 | ' | ' | ($5) | ($3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Remaining Maturity of Foreign Currency Derivatives | '0 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency derivative instruments not designated as hedging instruments at fair value, net | -1 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) on foreign exchange currency contracts not designated as hedging instruments | ' | ' | ' | -6 | -2 | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Length of Time Hedged in Foreign Currency Cash Flow Hedge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency cash flow hedge derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 93 | 53 | 23 | 11 | 23 | 13 | ' | ' | -33 | 0 | ' | ' | 80 | 68 | ' | ' | 35 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of cash flow hedging instruments | -2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 3 | 1 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding notional mass of commodity contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,500 | 17,000 | ' | ' | ' | ' | ' |
Derivative, Higher Remaining Maturity Range | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 months | ' | ' | ' | ' | ' | ' |
Price risk derivatives, at fair value, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -1 | ' | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) Reclassified to Cost of Sales, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -3 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 2 | ' | ' | ' | ' | ' | ' | ' |
Obligations under current and previous interest rate derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' |
Payments for current and previous interest rate arranagements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ($17) | ($1) |
Employee_Benefit_and_Incentive2
Employee Benefit and Incentive Plans - Share and Equity-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expenses | $48 | $43 | $27 |
Cost of Sales [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expenses | 11 | 8 | 3 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expenses | 26 | 27 | 21 |
Research and Development Expense [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expenses | $11 | $8 | $3 |
Employee_Benefit_and_Incentive3
Employee Benefit and Incentive Plans - Stock Option Valuation Assumptions (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
2011 Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | $7.05 | $6.93 | $7.82 |
Weighted average assumptions used: | ' | ' | ' |
Expected volatility | 60.71% | 63.00% | 80.00% |
Expected lives (in years) | '4 years 9 months | '5 years | '4 years 9 months |
Risk free interest rate | 0.75% | 0.92% | 0.89% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
2006 Options Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | ' | ' | $7.43 |
Weighted average assumptions used: | ' | ' | ' |
Expected volatility | ' | ' | 70.00% |
Expected lives (in years) | ' | ' | '6 years 3 months |
Risk free interest rate | ' | ' | 1.80% |
Expected dividend yield | ' | ' | 0.00% |
2007 Options Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | ' | ' | $7.43 |
Weighted average assumptions used: | ' | ' | ' |
Expected volatility | ' | ' | 70.00% |
Expected lives (in years) | ' | ' | '6 years 3 months |
Risk free interest rate | ' | ' | 1.80% |
Expected dividend yield | ' | ' | 0.00% |
TSR Stock Options [Member] | 2011 Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | $17.01 | ' | ' |
Weighted average assumptions used: | ' | ' | ' |
Expected volatility | 48.32% | ' | ' |
Expected lives (in years) | '2 years 9 months | ' | ' |
Risk free interest rate | 0.33% | ' | ' |
Expected dividend yield | 0.00% | ' | ' |
Employee_Benefit_and_Incentive4
Employee Benefit and Incentive Plans - Summary of Changes in Options Outstanding (Detail) (USD $) | 12 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
2011 Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock Options Outstanding, Period Start | 4,606 | ' |
Stock options granted | 2,246 | ' |
Stock Options, Terminated, cancelled or expired | -739 | ' |
Stock Options, Exercised | -306 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,807 | 4,606 |
Stock Options, Exercisable | 983 | ' |
Wtd. Avg. exercise price per share, Beginning Balance | $12.93 | ' |
Wtd. Avg. exercise price per share, Granted | $14.09 | ' |
Wtd. Avg. exercise price per share Terminated, cancelled or expired, | $14.86 | ' |
Wtd. Avg. exercise price per share, Exercised | $13.71 | ' |
Wtd. Avg. exercise price per share, Ending Balance | $13.09 | $12.93 |
Wtd. Avg. exercise price per share, Exercisable | $12.56 | ' |
Wtd. Avg. Remaining Contractual Term Beginning Balance | '6 years | '6 years |
Wtd. Avg. Remaining Contractual Term Ending Balance | '6 years | '6 years |
Wtd. Avg Remaining Contractual Term Exercisable | '5 years | ' |
Aggregate Intrinsic Value, Beginning Balance | $2 | ' |
Aggregate Intrinsic Value, Ending Balance | 17 | 2 |
Aggregate Intrinsic Value, Exercisable | 3 | ' |
2006 Options Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock Options Outstanding, Period Start | 6,746 | ' |
Stock options granted | 0 | ' |
Stock Options, Terminated, cancelled or expired | -98 | ' |
Stock Options, Exercised | -5,096 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,552 | 6,746 |
Stock Options, Exercisable | 1,458 | ' |
Wtd. Avg. exercise price per share, Beginning Balance | $6.88 | ' |
Wtd. Avg. exercise price per share, Granted | $0 | ' |
Wtd. Avg. exercise price per share Terminated, cancelled or expired, | $27.07 | ' |
Wtd. Avg. exercise price per share, Exercised | $6.51 | ' |
Wtd. Avg. exercise price per share, Ending Balance | $6.85 | $6.88 |
Wtd. Avg. exercise price per share, Exercisable | $6.76 | ' |
Wtd. Avg. Remaining Contractual Term Beginning Balance | '6 years | '7 years |
Wtd. Avg. Remaining Contractual Term Ending Balance | '6 years | '7 years |
Wtd. Avg Remaining Contractual Term Exercisable | '5 years | ' |
Aggregate Intrinsic Value, Beginning Balance | 30 | ' |
Aggregate Intrinsic Value, Ending Balance | 14 | 30 |
Aggregate Intrinsic Value, Exercisable | 14 | ' |
2007 Options Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock Options Outstanding, Period Start | 1,222 | ' |
Stock options granted | 0 | ' |
Stock Options, Terminated, cancelled or expired | -35 | ' |
Stock Options, Exercised | -321 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 866 | 1,222 |
Stock Options, Exercisable | 858 | ' |
Wtd. Avg. exercise price per share, Beginning Balance | $6.93 | ' |
Wtd. Avg. exercise price per share, Granted | $0 | ' |
Wtd. Avg. exercise price per share Terminated, cancelled or expired, | $7.33 | ' |
Wtd. Avg. exercise price per share, Exercised | $6.46 | ' |
Wtd. Avg. exercise price per share, Ending Balance | $7.08 | $6.93 |
Wtd. Avg. exercise price per share, Exercisable | $7.06 | ' |
Wtd. Avg. Remaining Contractual Term Beginning Balance | '6 years | '7 years |
Wtd. Avg. Remaining Contractual Term Ending Balance | '6 years | '7 years |
Wtd. Avg Remaining Contractual Term Exercisable | '6 years | ' |
Aggregate Intrinsic Value, Beginning Balance | 37 | ' |
Aggregate Intrinsic Value, Ending Balance | 8 | 37 |
Aggregate Intrinsic Value, Exercisable | $8 | ' |
Employee_Benefit_and_Incentive5
Employee Benefit and Incentive Plans - Summary of Changes in Awards other than Stock Options (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
2006 MIP [Member] | 2006 MIP [Member] | 2006 MIP [Member] | 2011 Plan [Member] | 2011 Plan [Member] | 2011 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Non-Option Equity Awards Outstanding Beginning Balance | ' | ' | 22 | 4,520 | ' | ' |
Equity Instruments Other than Options, Granted | 0 | ' | ' | 4,710 | ' | ' |
Issuances | -61 | ' | ' | -1,145 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $10.48 | ' | ' | ' | ' | ' |
Terminated, cancelled or expired | -30 | ' | ' | -794 | ' | ' |
Non-Option Equity Awards Outstanding Ending Balance | 99 | ' | 22 | 7,291 | 4,520 | ' |
Equity Instruments Other than Options, Nonvested, Wtd. Avg Grant Date Fair Value Beginning Balance | $11.63 | ' | ' | $14.19 | ' | ' |
Grants in period, weighted average grant date fair value (usd per share) | $0 | $12.69 | ' | $13.98 | $14.71 | $12.78 |
Grant Date Fair Value Non-Option, Issued | $24.79 | ' | ' | $13.59 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $12.69 | ' | ' | $15.34 | ' | ' |
Equity Instruments Other than Options, Nonvested, Wtd. Avg Grant Date Fair Value Ending Balance | $10.59 | ' | ' | $14.04 | $14.19 | ' |
Employee_Benefit_and_Incentive6
Employee Benefit and Incentive Plans - Weighted Average Assumptions for Benefit Plans (Detail) (Pension Plans, Defined Benefit [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Discount rates | 3.00% | 3.00% |
Expected return on plan assets | 3.40% | 3.40% |
Rate of compensation increase | 3.20% | 3.00% |
Employee_Benefit_and_Incentive7
Employee Benefit and Incentive Plans - Fair Values of Pension Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Asset Category | ' | ' |
Fair value of plan assets | $53 | $55 |
Common Collective Trust [Member] | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | 39 | 41 |
Insurance Contract [Member] | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | 14 | 14 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Common Collective Trust [Member] | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Insurance Contract [Member] | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | 53 | 55 |
Significant Other Observable Inputs (Level 2) | Common Collective Trust [Member] | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | 39 | 41 |
Significant Other Observable Inputs (Level 2) | Insurance Contract [Member] | ' | ' |
Asset Category | ' | ' |
Fair value of plan assets | $14 | $14 |
Employee_Benefit_and_Incentive8
Employee Benefit and Incentive Plans - Post-retirement Healthcare Plan Expenses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Service cost | $1 | $1 | $1 |
Interest cost | 6 | 7 | 9 |
Net amortization of losses | -1 | -1 | ' |
One-time deviation | ' | ' | -1 |
Post-retirement expense | $6 | $7 | $9 |
Employee_Benefit_and_Incentive9
Employee Benefit and Incentive Plans - Obligations and Assets for Post-retirement Healthcare Plan (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefits and Share-based Compensation [Abstract] | ' | ' | ' |
Benefit obligation beginning of year | $166 | $158 | $177 |
Service cost | 1 | 1 | 1 |
Interest cost | 6 | 7 | 9 |
Actuarial loss (gain) | -45 | 10 | -18 |
Benefits paid, net | -6 | -6 | -10 |
Prior service cost | ' | -5 | ' |
Other | ' | 1 | ' |
One-time deviation | ' | ' | -1 |
Benefit obligation end of year | $122 | $166 | $158 |
Recovered_Sheet1
Employee Benefit and Incentive Plans - Weighted Average Assumptions for Retiree Medical Benefits (Detail) (Other Postretirement Benefit Plans, Defined Benefit [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Discount rate | 4.75% | 3.75% |
Assumed health care trend rate for next year | 6.72% | 7.24% |
Assumed ultimate health care trend rate | 4.50% | 5.00% |
Year that the rate reaches the ultimate trend rate | '2026 | '2020 |
Recovered_Sheet2
Employee Benefit and Incentive Plans - Reconciliation of Funded Status of Post-retirement Healthcare Plan (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Benefit obligation | ($122) | ($166) | ($158) | ($177) |
Fair value of plan assets | 53 | 55 | ' | ' |
Funded status | -122 | -166 | ' | ' |
Unrecognized net gain | -67 | -23 | ' | ' |
Unrecognized prior service cost | -4 | -5 | ' | ' |
Accrued cost | -193 | -194 | ' | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Fair value of plan assets | $0 | $0 | ' | ' |
Recovered_Sheet3
Employee Benefit and Incentive Plans Employee Benefit and Incentive Plans - 2011 Omnibus Plan Additional Information (Details) (2011 Plan [Member], USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $1 | ' | ' |
Stock options granted | 2,246 | ' | ' |
Weighted average grant date fair value per share | $7.05 | $6.93 | $7.82 |
Options, grants in period, weighted average exercise price (usd per share) | $14.09 | ' | ' |
Stock Options Outstanding | 5,807 | 4,606 | ' |
Equity Instruments Other than Options, Granted | 4,710 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $14.04 | $14.19 | ' |
Grants in period, weighted average grant date fair value (usd per share) | $13.98 | $14.71 | $12.78 |
Total compensation cost not yet recognized, share-based awards other than options | 74 | ' | ' |
Equity instruments other than options, nonvested, intrinsic value | $16,000,000 | $3,000,000 | ' |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Exercisable options, weighted average exercise price (usd per share) | $8.74 | ' | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Exercisable options, weighted average exercise price (usd per share) | $17.30 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity Instruments Other than Options, Granted | 3,800 | ' | ' |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Rate at which share-based awards vest each year (percent) | 25.00% | ' | ' |
Total compensation cost not yet recognized, period for recognition | '3 years | ' | ' |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Rate at which share-based awards vest each year (percent) | 33.00% | ' | ' |
Total compensation cost not yet recognized, period for recognition | '4 years | ' | ' |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Rate at which share-based awards vest each year (percent) | 25.00% | ' | ' |
Total compensation cost not yet recognized, stock options (shares) | 26 | ' | ' |
Total compensation cost not yet recognized, period for recognition | '4 years | ' | ' |
TSR Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | $17.01 | ' | ' |
Performance Based Restricted Share Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Rate at which share-based awards vest each year (percent) | 33.00% | ' | ' |
Total compensation cost not yet recognized, period for recognition | '3 years | ' | ' |
Performance Based Restricted Share Units [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 0.00% | ' | ' |
Performance Based Restricted Share Units [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 150.00% | ' | ' |
Chief Executive Officer [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 0.00% | ' | ' |
Chief Executive Officer [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 100.00% | ' | ' |
2013 Annual Grant [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock options granted | 1,900 | ' | ' |
Weighted average grant date fair value per share | $6.90 | ' | ' |
Options, grants in period, weighted average exercise price (usd per share) | $13.91 | ' | ' |
Share-based Compensation Award Total Cost | 10 | ' | ' |
2013 Annual Grant [Member] | Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Award Total Cost | 37 | ' | ' |
Equity Instruments Other than Options, Granted | 3,500 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $13.91 | ' | ' |
2013 Annual Grant [Member] | TSR Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Award Total Cost | 13 | ' | ' |
Total compensation cost not yet recognized, period for recognition | '3 years | ' | ' |
Equity Instruments Other than Options, Granted | 900 | ' | ' |
Grants in period, weighted average grant date fair value (usd per share) | $17.01 | ' | ' |
2013 Annual Grant [Member] | TSR Stock Options [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 0.00% | ' | ' |
2013 Annual Grant [Member] | TSR Stock Options [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 150.00% | ' | ' |
Subsequent Event [Member] | 2014 Annual Grant [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock options granted | 2,000 | ' | ' |
Weighted average grant date fair value per share | $6.67 | ' | ' |
Options, grants in period, weighted average exercise price (usd per share) | $15.37 | ' | ' |
Share-based Compensation Award Total Cost | 56 | ' | ' |
Total compensation cost not yet recognized, period for recognition | '4 years | ' | ' |
Subsequent Event [Member] | 2014 Annual Grant [Member] | Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Rate at which share-based awards vest each year (percent) | 25.00% | ' | ' |
Equity Instruments Other than Options, Granted | 3,800 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $15.37 | ' | ' |
Subsequent Event [Member] | 2014 Annual Grant [Member] | Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Rate at which share-based awards vest each year (percent) | 25.00% | ' | ' |
Subsequent Event [Member] | 2014 Annual Grant [Member] | TSR Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Award Total Cost | $12 | ' | ' |
Total compensation cost not yet recognized, period for recognition | '3 years | ' | ' |
Equity Instruments Other than Options, Granted | 1,000 | ' | ' |
Grants in period, weighted average grant date fair value (usd per share) | $15.94 | ' | ' |
Subsequent Event [Member] | 2014 Annual Grant [Member] | TSR Stock Options [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 0.00% | ' | ' |
Subsequent Event [Member] | 2014 Annual Grant [Member] | TSR Stock Options [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of units that will vest (percent) | 150.00% | ' | ' |
Recovered_Sheet4
Employee Benefit and Incentive Plans - Historical Share-Based Award Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 28, 2009 | Feb. 04, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 28, 2009 | Jun. 30, 2007 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Executives | Rollover Options [Member] | Restricted Share Units And Deferred Stock Units [Member] | Class B Interest [Member] | Option Exchange [Member] | Option Exchange [Member] | 2006 Management Incentive Plan [Member] | 2006 Management Incentive Plan [Member] | 2006 Management Incentive Plan [Member] | 2007 Employee Incentive Plan [Member] | 2007 Employee Incentive Plan [Member] | 2007 Employee Incentive Plan [Member] | 2007 Employee Incentive Plan [Member] | 2007 Employee Incentive Plan [Member] | 2006 MIP [Member] | 2006 MIP [Member] | 2006 Options Plan [Member] | 2006 Options Plan [Member] | 2006 Options Plan [Member] | 2007 Options Plan [Member] | 2007 Options Plan [Member] | 2007 Options Plan [Member] | 2007 Options Plan [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |
Executives | Class B Interest [Member] | Stock Options [Member] | Restricted Share Units And Deferred Stock Units [Member] | 2006 Management Incentive Plan [Member] | 2007 Employee Incentive Plan [Member] | Restricted Share Units And Deferred Stock Units [Member] | 2006 Management Incentive Plan [Member] | 2007 Employee Incentive Plan [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grants in period, weighted average grant date fair value (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $12.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | ' | ' | ' | ' | 'P10Y | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class B-2008 Series Interest | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeitures | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class B Interests | ' | ' | ' | 130,000 | 67,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate of Freescale Ltd common shares | ' | 800,000 | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Strike price of stock option | ' | $22.24 | ' | ' | $6.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | $0 | ' | ' | ' | ' | $6.40 | $6.40 | ' | $36.12 | $36.12 |
Modification charge | ' | ' | ' | ' | $18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation cost not yet recognized, period for recognition | ' | ' | ' | ' | '4 years | ' | '4 years | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | '4 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | 6,000,000 | 13,500,000 | 11,700,000 | ' | ' | ' | 2,100,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Options Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | 1,552,000 | 6,746,000 | ' | 866,000 | 1,222,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Rate At Which Options Vest Each Year | ' | ' | ' | 25.00% | ' | ' | 25.00% | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | ' | ' | 1 | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44 | 9 | 1 | 3 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | ' | 143,000 | ' | 3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation cost not yet recognized, stock options (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | ' | ' | 344,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Current Employees Participated In Plan | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Senior Management Entered Into Separation Agreements | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Intrinsic Value Of RSUs Issued At Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | $4 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis for options and stock interest exchanged for new options | ' | ' | ' | ' | ' | 'Options and Class B Interests were exchanged for new options with a lower exercise price granted on a one-for-one basis for options and on a one-for-one hundred forty-four basis for Class B Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet5
Employee Benefit and Incentive Plans - Share-Based Compensation Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | 1.6 | ' | ' | ' |
Maximum Employee Subscription Rate | ' | 15.00% | ' | ' | ' |
Purchase Price as Percent of Fair Market Value | ' | 85.00% | ' | ' | ' |
Employee Stock Purchase Plans, Shares | 1 | ' | ' | ' | 1 |
Employee Share Purchase Plan, Share Purchase Price | $11.52 | ' | ' | ' | $13.64 |
Employee Share Purchase Plan, Compensation Expense | ' | $4 | $4 | ' | ' |
Discount from Market Price | ' | 15.00% | ' | ' | ' |
Matching contributions percentage in defined contribution plans | ' | 100.00% | ' | ' | ' |
Pre-tax contributions percentage | ' | 5.00% | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | ' | 27 | 29 | 31 | ' |
Other Labor-related Expenses | ' | $51 | $0 | $59 | ' |
Recovered_Sheet6
Employee Benefit and Incentive Plans - Pension Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employees | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Pension benefit plan offer to non US employees | 2,700 | ' | ' |
Net periodic benefit cost for pension plans | $6 | $7 | $9 |
Accumulated benefit obligation for defined benefit plan | 142 | 139 | ' |
Net projected benefit obligation of plans | 158 | 155 | ' |
Plan Assets | 53 | 55 | ' |
Expected Future Benefit Payments, Next Twelve Months | 5 | ' | ' |
Expected Future Benefit Payments, Year Two | 7 | ' | ' |
Expected Future Benefit Payments, Year Three | 8 | ' | ' |
Expected Future Benefit Payments, Year Four | 9 | ' | ' |
Expected Future Benefit Payments, Year Five | 10 | ' | ' |
Expected Future Benefit Payments, Five Fiscal Years Thereafter | 51 | ' | ' |
Effect of 1% Increase on Service and Interest Cost Components | 1 | ' | ' |
Effect of 1% Increase on Accumulated Postretirement Benefit Obligation | 11 | ' | ' |
Effect of 1% Decrease on Service and Interest Cost Components | 1 | ' | ' |
Effect of 1% Decrease on Accumulated Postretirement Benefit Obligation | 9 | ' | ' |
Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Target Plan Asset Allocations | 30.00% | ' | ' |
Fixed Income Funds [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Target Plan Asset Allocations | 70.00% | ' | ' |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Net periodic benefit cost for pension plans | 13 | 11 | 11 |
Employer contribution to pension plans | 2 | 3 | 5 |
Amounts that Will be Amortized from AOCI in Next Fiscal Year | -2 | ' | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Amounts that Will be Amortized from AOCI in Next Fiscal Year | $4 | ' | ' |
Income_Taxes_Components_of_Los
Income Taxes - Components of Loss Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
(Loss) earnings before income taxes | ($168) | ($100) | ($382) |
Bermuda [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
(Loss) earnings before income taxes | -8 | -8 | -13 |
United States [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
(Loss) earnings before income taxes | -388 | -301 | -536 |
Foreign [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
(Loss) earnings before income taxes | $228 | $209 | $167 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income tax expense | $40 | $2 | $28 |
Non-current: | ' | ' | ' |
United States | -44 | -10 | 0 |
Foreign | 4 | -36 | -4 |
Total non-current | -40 | -46 | -4 |
Deferred: | ' | ' | ' |
United States | 44 | 11 | 5 |
Foreign | 14 | 14 | 8 |
Deferred incomes taxes | 58 | 25 | 13 |
Current: | ' | ' | ' |
United States | 0 | 0 | 0 |
Foreign | 22 | 23 | 19 |
Total current | $22 | $23 | $19 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Income Tax Reconciliation, Foreign Income Tax Rate Differential | ($22) | ($71) | ($136) |
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 153 | 131 | 207 |
Research credits | -32 | -12 | -32 |
Income Tax Reconciliation, Tax Credits, Investment | 12 | 7 | 10 |
Income Tax Reconciliation, Tax Contingencies | 45 | 44 | 6 |
Income Tax Reconciliation, Other Adjustments | -2 | 5 | 5 |
Income tax expense | 40 | 2 | 28 |
Bermuda [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Provision at Bermuda Statutory rate of zero | $0 | $0 | $0 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Tax carryforwards | $778 | $703 |
Accrued interest | 461 | 308 |
Depreciation | 180 | 225 |
Employee benefits | 86 | 102 |
Other capitalized items | 76 | 84 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 33 | 66 |
Inventory | 31 | 41 |
Sales, bad debt and warranty reserves | 25 | 20 |
Share-based compensation | 23 | 44 |
Other, net | 17 | 23 |
Environmental reserves | 16 | 16 |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 13 | 25 |
Investments | 10 | 10 |
Deferred revenue | -1 | 34 |
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs | -14 | 2 |
Undistributed foreign earnings | -366 | -406 |
Valuation allowance | -1,288 | -1,156 |
Net deferred tax assets | $80 | $141 |
Income_Taxes_Income_Taxes_Bala
Income Taxes Income Taxes - Balance Sheet Components of Net Deferred Tax Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets, Net of Valuation Allowance, Current | $54 | $86 |
Deferred Income Taxes and Other Assets, Noncurrent | 92 | 101 |
Deferred Tax Liabilities, Net, Noncurrent | 65 | 43 |
Net Deferred Tax Assets | 80 | 141 |
Other Current Assets [Member] | ' | ' |
Deferred Tax Assets, Net of Valuation Allowance, Current | 54 | 86 |
Assets, Non-current [Member] | ' | ' |
Deferred Income Taxes and Other Assets, Noncurrent | 92 | 101 |
Accrued Liabilities [Member] | ' | ' |
Deferred Tax Liabilities, Net, Current | -1 | -3 |
Liabilities, Non-current [Member] | ' | ' |
Deferred Tax Liabilities, Net, Noncurrent | ($65) | ($43) |
Income_Taxes_Total_Amount_of_U
Income Taxes - Total Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance as of beginning of year | $168 | $207 | $210 |
Tax positions related to the current year: | ' | ' | ' |
Additions | 13 | 2 | 7 |
Reductions | 0 | 0 | 0 |
Tax positions related to prior years: | ' | ' | ' |
Additions | 1 | 0 | 0 |
Reductions | -3 | -22 | -6 |
Foreign currency translation adjustments | 0 | -1 | -1 |
Settlements | -1 | -1 | 0 |
Lapses in statutes of limitations | -46 | -17 | -3 |
Balance as of end of year | $132 | $168 | $207 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax Paid net of Refunds | $5 | $18 | $25 | ' |
Refund of withholding taxes | 13 | ' | ' | ' |
Tax rate under various tax holidays | 0.00% | ' | ' | ' |
Income Tax Holiday, Termination Date | '2020 | ' | ' | ' |
Income tax benefits attributable to the tax status of the subsidiaries with tax holidays | 2 | 2 | 3 | ' |
Benefit of the tax holidays on net income per share | $0.01 | $0.01 | $0.01 | ' |
Gross deferred tax assets | 1,888 | 1,842 | ' | ' |
Gross deferred tax liabilities | 520 | 545 | ' | ' |
Valuation allowance against deferred tax assets | 1,288 | 1,156 | ' | ' |
Change in valuation allowance | 132 | ' | ' | ' |
Unrecognized tax benefits | 132 | 168 | 207 | 210 |
Reduction on unrecognized tax benefits from prior years | 46 | 17 | 3 | ' |
unrecognized tax benefits that did not impact effective tax rate | 44 | ' | ' | ' |
Total liability for unrecognized tax benefits | 138 | 173 | 217 | ' |
Tax benefits included in total liability affect effective tax rate if recognized | 28 | 28 | 61 | ' |
Interest and penalties | ' | 4 | -2 | ' |
Accrued interest and penalties | 6 | 6 | ' | ' |
Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating losses | 421 | ' | ' | ' |
Research credits | 271 | ' | ' | ' |
Bermuda [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Statutory income tax rate | 0.00% | ' | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating losses | 357 | ' | ' | ' |
Research credits | 109 | ' | ' | ' |
Foreign Tax Authority [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating losses | 130 | ' | ' | ' |
Foreign capital losses | 48 | ' | ' | ' |
Research credits | 10 | ' | ' | ' |
Tax Credit Carryforward, Amount | 273 | ' | ' | ' |
Foreign Subsidiaries [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Valuation allowance against deferred tax assets | 58 | 67 | ' | ' |
Change in valuation allowance | -9 | ' | ' | ' |
United States [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Valuation allowance against deferred tax assets | 1,230 | 1,089 | ' | ' |
Change in valuation allowance | 141 | ' | ' | ' |
Income Tax Expense [Member] | Foreign Subsidiaries [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in valuation allowance | 1 | ' | ' | ' |
Income Tax Expense [Member] | United States [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in valuation allowance | 154 | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | Foreign Subsidiaries [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in valuation allowance | 8 | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | United States [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in valuation allowance | $13 | ' | ' | ' |
Maximum [Member] | Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Dates | '2033 | ' | ' | ' |
Research credits, expiration date | '2033 | ' | ' | ' |
Deferred Tax Foreign Tax Credit | '2023 | ' | ' | ' |
Maximum [Member] | State and Local Jurisdiction [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Dates | '2033 | ' | ' | ' |
Research credits, expiration date | '2033 | ' | ' | ' |
Maximum [Member] | Foreign Tax Authority [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Research credits, expiration date | '2033 | ' | ' | ' |
Minimum [Member] | Internal Revenue Service (IRS) [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Dates | '2016 | ' | ' | ' |
Research credits, expiration date | '2015 | ' | ' | ' |
Deferred Tax Foreign Tax Credit | '2014 | ' | ' | ' |
Minimum [Member] | State and Local Jurisdiction [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Dates | '2015 | ' | ' | ' |
Research credits, expiration date | '2018 | ' | ' | ' |
Minimum [Member] | Foreign Tax Authority [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Dates | '2014 | ' | ' | ' |
Research credits, expiration date | '2027 | ' | ' | ' |
Commitments_And_Contingencies_
Commitments And Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Rental expense, net of sublease income | $34,000,000 | $36,000,000 | $34,000,000 |
Future minimum lease payments, net of minimum sublease rentals, First Year | 33,000,000 | ' | ' |
Future minimum lease payments, net of minimum sublease rentals, Second Year | 22,000,000 | ' | ' |
Future minimum lease payments, net of minimum sublease rentals, Third Year | 14,000,000 | ' | ' |
Future minimum lease payments, net of minimum sublease rentals, Fourth Year | 12,000,000 | ' | ' |
Future minimum lease payments, net of minimum sublease rentals, Fifth Year | 7,000,000 | ' | ' |
Future minimum lease payments, net of minimum sublease rentals thereafter | 2,000,000 | ' | ' |
Cash Proceeds From Sale Of Assets | ' | ' | 57,000,000 |
Gain Loss On Sale Of Assets | ' | ' | 17,000,000 |
Deferred gain recognized as a reduction of gross rental expense | 2,000,000 | 3,000,000 | 1,000,000 |
Product Purchase commitment | 103,000,000 | ' | ' |
Rolling forecasts period | '18 months | ' | ' |
Non-product purchase commitments, Year One | 97,000,000 | ' | ' |
Non-product purchase commitments, Year Two | 66,000,000 | ' | ' |
Non-product purchase commitments, Year Three | 39,000,000 | ' | ' |
Non-product purchase commitments, Year Four | 19,000,000 | ' | ' |
Non-product purchase commitments, Year Five | 0 | ' | ' |
Total estimated undiscounted future cash flows associated with environmental matters | 82,000,000 | 83,000,000 | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Next Twelve Months | 5,000,000 | ' | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Second Year | 5,000,000 | ' | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Third Year | 5,000,000 | ' | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Fourth Year | 4,000,000 | ' | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due in Fifth Year | 3,000,000 | ' | ' |
Accrual for Environmental Loss Contingencies, Undiscounted, Due after Fifth Year | 60,000,000 | ' | ' |
Accruals for environmental matters | 44,000,000 | 44,000,000 | ' |
Accruals for environmental matters, discount rate | 4.70% | 4.40% | ' |
Charges/reversals for environmental matters | 2,000,000 | 3,000,000 | 2,000,000 |
Reversal of indemnification obligations accrual | ' | 4,000,000 | ' |
Accrual for Indemnification Obligations Gross | $0 | ' | ' |
Minimum [Member] | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Estimated remediation periods (in years) | 6 | ' | ' |
Maximum [Member] | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Estimated remediation periods (in years) | 50 | ' | ' |
Asset_Impairment_Charges_Addit
Asset Impairment Charges - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Asset Impairment Charges [Abstract] | ' |
Asset impairment charges | $49 |
Reorganization_of_Business_and2
Reorganization of Business and Other - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
mm | |||
Reorganization [Line Items] | ' | ' | ' |
CEO transition fees | ' | $13 | ' |
Write-down to Net Book Value | 4 | ' | ' |
Accelerated Amortization Expense | ' | 11 | ' |
Fabrication facility wafer size (millimeters) | 150 | ' | ' |
Accrual for indemnification obligations gross | ' | 16 | ' |
Gain (Loss) on Contract Termination | ' | -5 | ' |
Loss on Contract Termination | ' | ' | 71 |
Reorganization of business and other | 24 | -15 | 82 |
2012 Strategic Realignment Plan [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | 31 | 52 | ' |
Business exit costs | 4 | 38 | ' |
Cash payments for exit and other costs | 25 | 8 | ' |
Restructuring reserve balance | 9 | 30 | ' |
Expected number of positions to be eliminated (positions) | 170 | 270 | ' |
CEO transition fees | 1 | ' | ' |
Reorganization Of Business Program [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | 244 | ' | ' |
Cash payments for exit and other costs | 59 | 30 | ' |
Restructuring reserve balance | 21 | 81 | 128 |
Expected number of positions to be eliminated (positions) | 30 | 520 | 720 |
Restructuring accrual (reverse) adjustment and other | -1 | -17 | ' |
Toulouse, France Fabrication Facility [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Business exit costs | 6 | 18 | ' |
Proceeds from sale of property, plant and equipment and assets held for sale | 13 | ' | ' |
Fabrication Facility In Sendai [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Business exit costs | 1 | 9 | ' |
Cash payments for exit and other costs | ' | 3 | ' |
Restructuring accrual (reverse) adjustment and other | ' | -3 | ' |
Proceeds from sale of property, plant and equipment and assets held for sale | 5 | 9 | 10 |
Insurance recoveries (for property and inventory damage and related business interruption) | ' | 90 | 95 |
Reorganization of business and other | ' | ' | 118 |
Other Comprehensive Income (Loss), Finalization of Pension and Non-Pension Postretirement Plan Valuation, before Tax | ' | ' | 2 |
Exit And Other Costs [Member] | 2012 Strategic Realignment Plan [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Business exit costs | 28 | 3 | ' |
Cash payments for exit and other costs | 20 | 1 | ' |
Restructuring reserve balance | 8 | 2 | ' |
Restructuring accrual (reverse) adjustment and other | -2 | ' | ' |
Exit And Other Costs [Member] | Reorganization Of Business Program [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Business exit costs | ' | 2 | ' |
Cash payments for exit and other costs | ' | 6 | ' |
Restructuring reserve balance | ' | 0 | 6 |
Restructuring accrual (reverse) adjustment and other | ' | -2 | ' |
Contract Termination [Member] | Reorganization Of Business Program [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Cash payments for exit and other costs | ' | 2 | ' |
Selling, General and Administrative Expenses [Member] | 2012 Strategic Realignment Plan [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Business exit costs | 1 | 14 | ' |
Cash payments for exit and other costs | 10 | 3 | ' |
Restructuring reserve balance | 2 | 11 | ' |
Selling, General and Administrative Expenses [Member] | Reorganization Of Business Program [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Cash payments for exit and other costs | 0 | ' | ' |
Restructuring reserve balance | 2 | 2 | 8 |
Restructuring accrual (reverse) adjustment and other | ' | -6 | ' |
Lease And Exit Costs [Member] | Reorganization Of Business Program [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Cash payments for exit and other costs | ' | 4 | ' |
Research and Development Expense [Member] | 2012 Strategic Realignment Plan [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Business exit costs | ' | 16 | ' |
Cash payments for exit and other costs | 11 | 3 | ' |
Restructuring reserve balance | 2 | 13 | ' |
Research and Development Expense [Member] | Reorganization Of Business Program [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Cash payments for exit and other costs | 0 | ' | ' |
Restructuring reserve balance | 2 | 2 | 14 |
Restructuring accrual (reverse) adjustment and other | ' | -12 | ' |
Euro Member Countries, Euro | Reorganization Of Business Program [Member] | ' | ' | ' |
Reorganization [Line Items] | ' | ' | ' |
Restructuring accrual (reverse) adjustment and other | ($1) | ($14) | ' |
Schedule_of_Employee_Terminati
Schedule of Employee Termination Benefits and Exit Cost Accruals (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Person | Person | |
2012 Strategic Realignment Plan [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | $30 | ' |
Business exit costs | 4 | 38 |
Employee separation cost reserve usage | -25 | -8 |
Employee Separation Costs Reserve, Ending Balance | 9 | 30 |
Expected number of positions to be eliminated, Beginning Balance | 270 | ' |
Restructuring and Related Cost, Expected Number of Positions Eliminated | 120 | 660 |
Number of positions eliminated | -220 | -390 |
Restructuring, Expected Number of Positions To Be Eliminated, Ending Balance | 170 | 270 |
2012 Strategic Realignment Plan [Member] | Cost of Sales [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 6 | ' |
Business exit costs | 3 | 8 |
Employee separation cost reserve usage | -4 | -2 |
Employee Separation Costs Reserve, Ending Balance | 5 | 6 |
2012 Strategic Realignment Plan [Member] | Selling, General and Administrative Expenses [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 11 | ' |
Business exit costs | 1 | 14 |
Employee separation cost reserve usage | -10 | -3 |
Employee Separation Costs Reserve, Ending Balance | 2 | 11 |
2012 Strategic Realignment Plan [Member] | Research and Development Expense [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 13 | ' |
Business exit costs | ' | 16 |
Employee separation cost reserve usage | -11 | -3 |
Employee Separation Costs Reserve, Ending Balance | 2 | 13 |
2012 Strategic Realignment Plan [Member] | Exit And Other Costs [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 2 | ' |
Business exit costs | 28 | 3 |
Restructuring accrual (reverse) adjustment and other | -2 | ' |
Employee separation cost reserve usage | -20 | -1 |
Employee Separation Costs Reserve, Ending Balance | 8 | 2 |
Reorganization Of Business Program [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 81 | 128 |
Restructuring accrual (reverse) adjustment and other | -1 | -17 |
Employee separation cost reserve usage | -59 | -30 |
Employee Separation Costs Reserve, Ending Balance | 21 | 81 |
Expected number of positions to be eliminated, Beginning Balance | 520 | 720 |
Number of positions eliminated | -490 | -200 |
Restructuring, Expected Number of Positions To Be Eliminated, Ending Balance | 30 | 520 |
Reorganization Of Business Program [Member] | Cost of Sales [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 77 | 106 |
Restructuring accrual (reverse) adjustment and other | ' | 1 |
Employee separation cost reserve usage | -59 | -30 |
Employee Separation Costs Reserve, Ending Balance | 17 | 77 |
Reorganization Of Business Program [Member] | Selling, General and Administrative Expenses [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 2 | 8 |
Restructuring accrual (reverse) adjustment and other | ' | -6 |
Employee separation cost reserve usage | 0 | ' |
Employee Separation Costs Reserve, Ending Balance | 2 | 2 |
Reorganization Of Business Program [Member] | Research and Development Expense [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | 2 | 14 |
Restructuring accrual (reverse) adjustment and other | ' | -12 |
Employee separation cost reserve usage | 0 | ' |
Employee Separation Costs Reserve, Ending Balance | 2 | 2 |
Reorganization Of Business Program [Member] | Exit And Other Costs [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Employee Separation Costs Reserve, Beginning Balance | ' | 6 |
Business exit costs | ' | 2 |
Restructuring accrual (reverse) adjustment and other | ' | -2 |
Employee separation cost reserve usage | ' | -6 |
Employee Separation Costs Reserve, Ending Balance | ' | 0 |
Euro Member Countries, Euro | Reorganization Of Business Program [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Restructuring accrual (reverse) adjustment and other | ($1) | ($14) |
Certain_Relationships_and_Rela1
Certain Relationships and Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
Management Fee, Description | ' | ' | '0.015 |
Management agreement termination fee | ' | ' | $68 |
Management fees in selling, general and administrative expense | ' | ' | 12 |
Related Party Transaction, Expenses from Transactions with Related Party | 20 | 15 | 8 |
Accounts Payable, Related Parties, Current | $5 | $4 | ' |
Supplemental_EnterpriseWide_In2
Supplemental Enterprise-Wide Information - Geographic Region Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $1,082 | $1,085 | $1,038 | $981 | $957 | $1,009 | $1,029 | $950 | $4,186 | $3,945 | $4,572 |
Property, plant and equipment, net | 681 | ' | ' | ' | 715 | ' | ' | ' | 681 | 715 | ' |
Hong Kong [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,191 | 1,107 | 1,403 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,097 | 1,061 | 1,126 |
Property, plant and equipment, net | 327 | ' | ' | ' | 346 | ' | ' | ' | 327 | 346 | ' |
Switzerland [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 974 | 929 | 1,232 |
Malaysia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 692 | 606 | 543 |
Property, plant and equipment, net | 202 | ' | ' | ' | 211 | ' | ' | ' | 202 | 211 | ' |
Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 202 | 227 | 245 |
Other Nation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 15 | 23 |
Property, plant and equipment, net | 64 | ' | ' | ' | 73 | ' | ' | ' | 64 | 73 | ' |
China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $88 | ' | ' | ' | $85 | ' | ' | ' | $88 | $85 | ' |
Supplemental_EnterpriseWide_In3
Supplemental Enterprise-Wide Information - Product Design Group Revenues (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $1,082 | $1,085 | $1,038 | $981 | $957 | $1,009 | $1,029 | $950 | $4,186 | $3,945 | $4,572 |
Microcontrollers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 826 | 707 | 790 |
Digital Networking [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 915 | 852 | 928 |
Automotive MCUs [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,063 | 986 | 1,072 |
Analog And Sensors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 736 | 722 | 785 |
Radio Frequency [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 352 | 303 | 418 |
Other Product [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $294 | $375 | $579 |
Supplemental_EnterpriseWide_In4
Supplemental Enterprise-Wide Information - Additional Information (Detail) (Continental Automotive [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Continental Automotive [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage contribution to total net sales | 15.00% | 15.00% | 13.00% |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts - Valuation and qualifying account activity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation and qualifying account, beginning balance | $2 | $2 |
Additions charged to costs and expenses | 1 | 0 |
Deductions | -1 | 0 |
Valuation and qualifying account, ending balance | 2 | 2 |
Warranty Reserves [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation and qualifying account, beginning balance | 6 | 4 |
Additions charged to costs and expenses | 0 | 2 |
Deductions | -1 | 0 |
Valuation and qualifying account, ending balance | $5 | $6 |
Supplemental_Guarantor_Condens2
Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $6,479 | $6,380 |
Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $2,993 | ' |
Schedule_of_Supplemental_Conde
Schedule of Supplemental Condensed Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $1,082 | $1,085 | $1,038 | $981 | $957 | $1,009 | $1,029 | $950 | $4,186 | $3,945 | $4,572 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,399 | 2,304 | 2,677 |
Gross margin | 475 | 473 | 441 | 398 | 375 | 424 | 440 | 402 | 1,787 | 1,641 | 1,895 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 464 | 438 | 510 |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 755 | 742 | 797 |
Amortization expense for acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13 | 232 |
Reorganization of business and other | ' | ' | ' | ' | ' | ' | ' | ' | 24 | -15 | 82 |
Operating (loss) earnings | 145 | 157 | 125 | 104 | 56 | 127 | 112 | 168 | 531 | 463 | 274 |
Loss on extinguishment or modification of long-term debt, net | ' | ' | ' | ' | ' | ' | ' | ' | -217 | -32 | -97 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -482 | -531 | -559 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -168 | -100 | -382 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 40 | 2 | 28 |
Net loss | -118 | 23 | -65 | -48 | -35 | -24 | -34 | -9 | -208 | -102 | -410 |
Freescale Ltd.[Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 7 | 12 |
Reorganization of business and other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 |
Operating (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -7 | -13 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 218 | 92 | -306 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 211 | 85 | -319 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | 211 | 85 | -319 |
Guarantor [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 94 | -306 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 94 | -306 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 94 | -306 |
Subsidiary Issuer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,363 | 5,179 | 6,078 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,885 | 3,827 | 4,486 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 1,478 | 1,352 | 1,592 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 640 | 643 | 664 |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 488 | 471 | 504 |
Amortization expense for acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13 | 232 |
Reorganization of business and other | ' | ' | ' | ' | ' | ' | ' | ' | 17 | -35 | 58 |
Operating (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | 320 | 260 | 134 |
Loss on extinguishment or modification of long-term debt, net | ' | ' | ' | ' | ' | ' | ' | ' | -217 | -32 | -97 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 119 | -141 | -332 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 222 | 87 | -295 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 2 | -7 | 14 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 94 | -309 |
Non-Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,482 | 5,339 | 6,298 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,173 | 5,050 | 5,995 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 309 | 289 | 303 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 194 | 184 | 208 |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 267 | 271 | 293 |
Reorganization of business and other | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 20 | 23 |
Operating (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | -159 | -186 | -221 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 387 | 405 | 386 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 228 | 219 | 165 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 9 | 14 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | 190 | 210 | 151 |
Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | -6,659 | -6,573 | -7,804 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | -6,659 | -6,573 | -7,804 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -377 | -396 | -374 |
Operating (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | 377 | 396 | 374 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -1,426 | -981 | -1 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1,049 | -585 | 373 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | ($1,049) | ($585) | $373 |
Schedule_of_Supplemental_Conde1
Schedule of Supplemental Condensed Consolidating Statements of Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net (loss) earnings | ($118) | $23 | ($65) | ($48) | ($35) | ($24) | ($34) | ($9) | ($208) | ($102) | ($410) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -6 | 0 | -5 |
Derivative instruments adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized losses arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | -8 | 6 | -4 |
Reclassification adjustment for items included in net earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1 | 0 |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 47 | -18 | 7 |
Amortization of actuarial gains included in net earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 0 | 0 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | -49 | 18 | -7 |
Other comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 35 | -11 | -2 |
Comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -173 | -113 | -412 |
Freescale Ltd.[Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | 211 | 85 | -319 |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 211 | 85 | -319 |
Guarantor [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 94 | -306 |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 94 | -306 |
Subsidiary Issuer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 94 | -309 |
Derivative instruments adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized losses arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | -8 | 6 | -4 |
Reclassification adjustment for items included in net earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1 | ' |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 44 | -6 | 18 |
Amortization of actuarial gains included in net earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' |
Other comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 35 | 1 | 14 |
Comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 255 | 95 | -295 |
Non-Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | 190 | 210 | 151 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -6 | ' | -5 |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -12 | -11 |
Amortization of actuarial gains included in net earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Other comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -12 | -16 |
Comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 190 | 198 | 135 |
Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) earnings | ' | ' | ' | ' | ' | ' | ' | ' | -1,049 | -585 | 373 |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -1,049 | -585 | 373 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -6 | ' | ' |
Post-retirement adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | ($49) | $18 | ' |
Schedule_of_Supplemental_Conde2
Schedule of Supplemental Condensed Consolidating Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $747 | $711 | $772 | $1,043 |
Accounts receivable, net | 388 | 384 | ' | ' |
Inventory, net | 733 | 797 | ' | ' |
Other current assets | 127 | 166 | ' | ' |
Total current assets | 1,995 | 2,058 | ' | ' |
Property, plant and equipment, net | 681 | 715 | ' | ' |
Intangible assets, net | 52 | 64 | ' | ' |
Other assets, net | 319 | 334 | ' | ' |
Total assets | 3,047 | 3,171 | ' | ' |
Liabilities and Shareholders' (Deficit) Equity | ' | ' | ' | ' |
Current portion of long-term debt and capital lease obligations | 93 | 6 | ' | ' |
Accounts payable | 398 | 323 | ' | ' |
Accrued liabilities and other | 371 | 543 | ' | ' |
Total current liabilities | 862 | 872 | ' | ' |
Long-term debt | 6,386 | 6,375 | ' | ' |
Other liabilities | 393 | 455 | ' | ' |
Total liabilities | 7,641 | 7,702 | ' | ' |
Total shareholders' (deficit) equity | -4,594 | -4,531 | -4,480 | -4,934 |
Total liabilities and shareholders’ deficit | 3,047 | 3,171 | ' | ' |
Freescale Ltd.[Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 1 | 1 | 2 | 0 |
Inter-company receivable | 169 | 213 | ' | ' |
Total current assets | 170 | 214 | ' | ' |
Investment in affiliates | -4,721 | -4,717 | ' | ' |
Total assets | -4,551 | -4,503 | ' | ' |
Liabilities and Shareholders' (Deficit) Equity | ' | ' | ' | ' |
Inter-company note payable | 43 | 43 | ' | ' |
Other liabilities | 0 | 1 | ' | ' |
Total liabilities | 43 | 44 | ' | ' |
Total shareholders' (deficit) equity | -4,594 | -4,547 | ' | ' |
Total liabilities and shareholders’ deficit | -4,551 | -4,503 | ' | ' |
Guarantor [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investment in affiliates | -4,721 | -4,717 | ' | ' |
Inter-company note receivable | 118 | 114 | ' | ' |
Total assets | -4,603 | -4,603 | ' | ' |
Liabilities and Shareholders' (Deficit) Equity | ' | ' | ' | ' |
Inter-company note payable | 118 | 114 | ' | ' |
Other liabilities | ' | 0 | ' | ' |
Total liabilities | 118 | 114 | ' | ' |
Total shareholders' (deficit) equity | -4,721 | -4,717 | ' | ' |
Total liabilities and shareholders’ deficit | -4,603 | -4,603 | ' | ' |
Subsidiary Issuer [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 235 | 104 | 56 | 302 |
Inter-company receivable | 445 | 397 | ' | ' |
Accounts receivable, net | 91 | 99 | ' | ' |
Inventory, net | 276 | 280 | ' | ' |
Other current assets | 74 | 105 | ' | ' |
Total current assets | 1,121 | 985 | ' | ' |
Property, plant and equipment, net | 327 | 346 | ' | ' |
Investment in affiliates | 1,364 | 1,600 | ' | ' |
Intangible assets, net | 52 | 64 | ' | ' |
Inter-company note receivable | 0 | ' | ' | ' |
Other assets, net | 156 | 166 | ' | ' |
Total assets | 3,020 | 3,161 | ' | ' |
Liabilities and Shareholders' (Deficit) Equity | ' | ' | ' | ' |
Current portion of long-term debt and capital lease obligations | 93 | 6 | ' | ' |
Inter-company payable | 565 | 697 | ' | ' |
Accounts payable | 241 | 179 | ' | ' |
Accrued liabilities and other | 245 | 337 | ' | ' |
Total current liabilities | 1,144 | 1,219 | ' | ' |
Long-term debt | 6,386 | 6,375 | ' | ' |
Other liabilities | 211 | 284 | ' | ' |
Total liabilities | 7,741 | 7,878 | ' | ' |
Total shareholders' (deficit) equity | -4,721 | -4,717 | ' | ' |
Total liabilities and shareholders’ deficit | 3,020 | 3,161 | ' | ' |
Non-Guarantors [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 511 | 606 | 714 | 741 |
Inter-company receivable | 504 | 459 | ' | ' |
Accounts receivable, net | 297 | 285 | ' | ' |
Inventory, net | 457 | 517 | ' | ' |
Other current assets | 53 | 61 | ' | ' |
Total current assets | 1,822 | 1,928 | ' | ' |
Property, plant and equipment, net | 354 | 369 | ' | ' |
Intangible assets, net | 0 | ' | ' | ' |
Inter-company note receivable | 161 | 157 | ' | ' |
Other assets, net | 163 | 168 | ' | ' |
Total assets | 2,500 | 2,622 | ' | ' |
Liabilities and Shareholders' (Deficit) Equity | ' | ' | ' | ' |
Inter-company payable | 553 | 372 | ' | ' |
Accounts payable | 157 | 144 | ' | ' |
Accrued liabilities and other | 126 | 206 | ' | ' |
Total current liabilities | 836 | 722 | ' | ' |
Inter-company note payable | 118 | 114 | ' | ' |
Other liabilities | 182 | 170 | ' | ' |
Total liabilities | 1,136 | 1,006 | ' | ' |
Total shareholders' (deficit) equity | 1,364 | 1,616 | ' | ' |
Total liabilities and shareholders’ deficit | 2,500 | 2,622 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Inter-company receivable | -1,118 | -1,069 | ' | ' |
Total current assets | -1,118 | -1,069 | ' | ' |
Investment in affiliates | 8,078 | 7,834 | ' | ' |
Inter-company note receivable | -279 | -271 | ' | ' |
Total assets | 6,681 | 6,494 | ' | ' |
Liabilities and Shareholders' (Deficit) Equity | ' | ' | ' | ' |
Inter-company payable | -1,118 | -1,069 | ' | ' |
Total current liabilities | -1,118 | -1,069 | ' | ' |
Inter-company note payable | -279 | -271 | ' | ' |
Total liabilities | -1,397 | -1,340 | ' | ' |
Total shareholders' (deficit) equity | 8,078 | 7,834 | ' | ' |
Total liabilities and shareholders’ deficit | $6,681 | $6,494 | ' | ' |
Schedule_of_Supplemental_Conde3
Schedule of Supplemental Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flow provided by (used for) operating activities | $321 | $350 | $99 |
Cash flows from investing activities: | ' | ' | ' |
Purchases for property, plant and equipment | -151 | -123 | -135 |
Proceeds from sale of property, plant and equipment | 12 | 19 | 68 |
Payments for purchased licenses and other assets | -70 | -73 | -62 |
Purchases and sales of short-term and other investments, net | -1 | 1 | 3 |
Proceeds from Insurance Settlement, Investing Activities | 0 | 0 | 37 |
Net cash used for investing activities | -210 | -176 | -89 |
Cash flows from financing activities: | ' | ' | ' |
Retirements of and payments for long-term debt and capital lease obligations | -5,062 | -734 | -1,853 |
Proceeds from Issuance Initial Public Offering | 0 | 0 | 838 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 1 |
Debt issuance proceeds, net of deferred financing costs | 4,929 | 481 | 724 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 62 | 21 | 0 |
Net cash used for financing activities | -71 | -232 | -290 |
Effect of exchange rate changes on cash and cash equivalents | -4 | -3 | 9 |
Net increase (decrease) in cash and cash equivalents | 36 | -61 | -271 |
Cash and cash equivalents, beginning of period | 711 | 772 | 1,043 |
Cash and cash equivalents, end of period | 747 | 711 | 772 |
Freescale Ltd.[Member] | ' | ' | ' |
Cash flow provided by (used for) operating activities | 40 | 0 | 9 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds From Ipo Of Common Stock And Over Allotments Exercise | ' | ' | -838 |
Inter-company loan receivable, dividends and capital contributions | -102 | -28 | ' |
Net cash used for investing activities | -102 | -28 | -838 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from Issuance Initial Public Offering | ' | ' | 838 |
Proceeds from (Payments for) Other Financing Activities | ' | ' | 1 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 62 | 21 | ' |
Inter-company loan payable, dividends and capital contributions | 0 | 6 | -8 |
Net cash used for financing activities | 62 | 27 | 831 |
Net increase (decrease) in cash and cash equivalents | 0 | -1 | 2 |
Cash and cash equivalents, beginning of period | 1 | 2 | 0 |
Cash and cash equivalents, end of period | 1 | 1 | 2 |
Guarantor [Member] | ' | ' | ' |
Cash flow provided by (used for) operating activities | 0 | -1 | 2 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds From Ipo Of Common Stock And Over Allotments Exercise | ' | ' | -838 |
Inter-company loan receivable, dividends and capital contributions | -106 | -30 | ' |
Net cash used for investing activities | -106 | -30 | -838 |
Cash flows from financing activities: | ' | ' | ' |
Contributions Of Net Proceeds From Ipo Of Common Shares And Over Allotment Exercise | ' | ' | 838 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | ' | 0 | ' |
Inter-company loan payable, dividends and capital contributions | 106 | 31 | -2 |
Net cash used for financing activities | 106 | 31 | 836 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Subsidiary Issuer [Member] | ' | ' | ' |
Cash flow provided by (used for) operating activities | 235 | 326 | 104 |
Cash flows from investing activities: | ' | ' | ' |
Purchases for property, plant and equipment | -68 | -58 | -83 |
Proceeds from sale of property, plant and equipment | ' | 1 | 55 |
Payments for purchased licenses and other assets | -30 | -32 | -36 |
Purchases and sales of short-term and other investments, net | -1 | 1 | 3 |
Inter-company loan receivable, dividends and capital contributions | 26 | 37 | -1 |
Net cash used for investing activities | -73 | -51 | -62 |
Cash flows from financing activities: | ' | ' | ' |
Retirements of and payments for long-term debt and capital lease obligations | -5,062 | -733 | -1,850 |
Contributions Of Net Proceeds From Ipo Of Common Shares And Over Allotment Exercise | ' | ' | 838 |
Debt issuance proceeds, net of deferred financing costs | 4,929 | 481 | 724 |
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 | -31 | -227 | -288 |
Net increase (decrease) in cash and cash equivalents | 131 | 48 | -246 |
Cash and cash equivalents, beginning of period | 104 | 56 | 302 |
Cash and cash equivalents, end of period | 235 | 104 | 56 |
Non-Guarantors [Member] | ' | ' | ' |
Cash flow provided by (used for) operating activities | 465 | 228 | 81 |
Cash flows from investing activities: | ' | ' | ' |
Purchases for property, plant and equipment | -83 | -65 | -52 |
Proceeds from sale of property, plant and equipment | 12 | 18 | 13 |
Payments for purchased licenses and other assets | -40 | -41 | -26 |
Proceeds from Insurance Settlement, Investing Activities | ' | ' | 37 |
Inter-company loan receivable, dividends and capital contributions | -4 | -9 | -10 |
Net cash used for investing activities | -115 | -97 | -38 |
Cash flows from financing activities: | ' | ' | ' |
Retirements of and payments for long-term debt and capital lease obligations | ' | -1 | -3 |
Inter-company loan payable, dividends and capital contributions | -441 | -235 | -76 |
Net cash used for financing activities | -441 | -236 | -79 |
Effect of exchange rate changes on cash and cash equivalents | -4 | -3 | 9 |
Net increase (decrease) in cash and cash equivalents | -95 | -108 | -27 |
Cash and cash equivalents, beginning of period | 606 | 714 | 741 |
Cash and cash equivalents, end of period | 511 | 606 | 714 |
Eliminations [Member] | ' | ' | ' |
Cash flow provided by (used for) operating activities | -419 | -203 | -97 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds From Ipo Of Common Stock And Over Allotments Exercise | ' | ' | 1,676 |
Inter-company loan receivable, dividends and capital contributions | 186 | 30 | 11 |
Net cash used for investing activities | 186 | 30 | 1,687 |
Cash flows from financing activities: | ' | ' | ' |
Contributions Of Net Proceeds From Ipo Of Common Shares And Over Allotment Exercise | ' | ' | -1,676 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | ' | 0 | ' |
Inter-company loan payable, dividends and capital contributions | 233 | 173 | 86 |
Net cash used for financing activities | $233 | $173 | ($1,590) |
Quarterly_and_Other_Financial_2
Quarterly and Other Financial Data (unaudited) - Operating Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net sales | $1,082 | $1,085 | $1,038 | $981 | $957 | $1,009 | $1,029 | $950 | $4,186 | $3,945 | $4,572 | |||||||||||
Gross margin | 475 | 473 | 441 | 398 | 375 | 424 | 440 | 402 | 1,787 | 1,641 | 1,895 | |||||||||||
Operating earnings | 145 | 157 | 125 | 104 | 56 | 127 | 112 | 168 | 531 | 463 | 274 | |||||||||||
Net (loss) earnings | ($118) | $23 | ($65) | ($48) | ($35) | ($24) | ($34) | ($9) | ($208) | ($102) | ($410) | |||||||||||
Net loss per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic net (loss) earnings per share | ($0.46) | $0.09 | ($0.25) | ($0.19) | ($0.14) | ($0.10) | ($0.14) | ($0.04) | ($0.81) | ($0.41) | ($1.82) | |||||||||||
Diluted net (loss) earnings per share | ($0.46) | [1] | $0.09 | [1] | ($0.25) | [1] | ($0.19) | [1] | ($0.14) | [1] | ($0.10) | [1] | ($0.14) | [1] | ($0.04) | [1] | ($0.81) | [1] | ($0.41) | [1] | ($1.82) | [1] |
Weighted Average Number of Shares Outstanding, Basic | 258 | [2] | 258 | [2] | 255 | [2] | 252 | [2] | 249 | [2] | 249 | [2] | 248 | [2] | 247 | [2] | 256 | [2] | 248 | [2] | 226 | [2] |
Weighted Average Number of Shares Outstanding, Diluted | 262 | 261 | 259 | 256 | 251 | 251 | 250 | 251 | 259 | 251 | 227 | |||||||||||
[1] | No dilutive securities have been included in the diluted net loss per share calculations, as a net loss was incurred in all periods presented | |||||||||||||||||||||
[2] | Weighted average common shares outstanding includes outstanding common shares of the Company and unissued common shares underlying vested RSUs. |