STMicroelectronics (STM) 20-F 1 Mar 18 2017 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2017shares
Document And Entity Information [Abstract]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Trading Symbol	STM
Entity Registrant Name	STMICROELECTRONICS NV
Entity Central Index Key	932,787
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	911,110,420

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 8,308	$ 6,944	$ 6,866
Other revenues	39	29	31
Net revenues	8,347	6,973	6,897
Cost of sales	(5,079)	(4,518)	(4,565)
Gross profit	3,268	2,455	2,332
Selling, general and administrative	(983)	(911)	(897)
Research and development	(1,302)	(1,336)	(1,425)
Other income and expenses, net	55	99	164
Impairment, restructuring charges and other related closure costs	(45)	(93)	(65)
Operating income	993	214	109
Interest expense, net	(22)	(20)	(22)
Income (loss) on equity-method investments	(2)	7	2
Loss on financial instruments, net	(16)
Income (loss) before income taxes and noncontrolling interest	953	201	89
Income tax benefit (expense)	(143)	(31)	21
Net income	810	170	110
Net income attributable to noncontrolling interest	(8)	(5)	(6)
Net income attributable to parent company	$ 802	$ 165	$ 104
Earnings per share (Basic) attributable to parent company stockholders	$ 0.91	$ 0.19	$ 0.12
Earnings per share (Diluted) attributable to parent company stockholders	$ 0.89	$ 0.19	$ 0.12

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 810	$ 170	$ 110
Other comprehensive income (loss), net of tax :
Currency translation adjustments arising during the period	224	(57)	(202)
Less : reclassification adjustment for gains on disposal of equity investment			(10)
Foreign currency translation adjustments	224	(57)	(212)
Net unrealized gains arising during the period	(2)
Net unrealized gains (losses) on securities	(2)
Net unrealized (losses) gains arising during the period	122	(33)	(117)
Less : reclassification adjustment for (income) losses included in net income	(30)	9	170
Net unrealized gains (losses) on derivatives	92	(24)	53
Prior service cost arising during the period			2
Net gains (losses) arising during the period	3	(8)	3
Less : amortization of prior service cost included in net periodic pension cost		1	1
Defined benefit pension plans	3	(7)	6
Other comprehensive (loss) income, net of tax	317	(88)	(153)
Comprehensive income (loss)	1,127	82	(43)
Less : comprehensive income (loss) attributable to noncontrolling interest	8	6	6
Comprehensive income (loss) attributable to the company's stockholders	$ 1,119	$ 76	$ (49)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current assets :
Cash and cash equivalents	$ 1,759	$ 1,629
Marketable securities	431	335
Trade accounts receivable, net	1,149	939
Inventories	1,335	1,173
Other current assets	425	311
Total current assets	5,099	4,387
Goodwill	123	116
Other intangible assets, net	209	195
Property, plant and equipment, net	3,094	2,287
Non-current deferred tax assets	624	528
Long-term investments	57	57
Other non-current assets	475	434
Total non-current assets	4,582	3,617
Total assets	9,681	8,004
Current liabilities:
Short-term debt	118	117
Trade accounts payable	893	620
Other payables and accrued liabilities	897	750
Dividends payable to stockholders	60	59
Accrued income tax	52	42
Total current liabilities	2,020	1,588
Long-term debt	1,583	1,334
Post-employment benefit obligations	385	347
Long-term deferred tax liabilities	11	5
Other long-term liabilities	215	134
Total non-current liabilities	2,194	1,820
Total liabilities	4,214	3,408
Commitment and contingencies
Parent company stockholders' equity
Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 911,110,420 shares issued, 896,590,286 shares outstanding)	1,157	1,157
Capital surplus	2,718	2,818
Retained earnings	973	431
Accumulated other comprehensive income	688	371
Treasury stock	(132)	(242)
Total parent company stockholders' equity	5,404	4,535
Noncontrolling interest	63	61
Total equity	5,467	4,596
Total liabilities and equity	$ 9,681	$ 8,004

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - € / shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 22, 2007
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	540,000,000	540,000,000	540,000,000	540,000,000
Preferred stock, shares issued	0	0
Common stock, nominal value	€ 1.04	€ 1.04
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, shares issued	911,110,420	911,110,420
Common stock, shares outstanding	896,590,286	883,410,506

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Capital Surplus [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2014	$ 5,055	$ 1,157	$ 2,741	$ (334)	$ 817	$ 613	$ 61
Issuance of senior unsecured convertible bonds	0
Stock-based compensation expense	38		38	45	(45)
Comprehensive income (loss):
Net income (loss)	110				104		6
Other comprehensive income (loss), net of tax	(153)					(153)
Comprehensive income (loss)	(43)
Dividends to noncontrolling interest	(6)						(6)
Dividends	(351)				(351)
Ending Balance at Dec. 31, 2015	4,693	1,157	2,779	(289)	525	460	61
Issuance of senior unsecured convertible bonds	121
Stock-based compensation expense	39		39	47	(47)
Comprehensive income (loss):
Net income (loss)	170				165		5
Other comprehensive income (loss), net of tax	(88)					(89)	1
Comprehensive income (loss)	82
Dividends to noncontrolling interest	(6)						(6)
Dividends	(212)				(212)
Ending Balance at Dec. 31, 2016	4,596	1,157	2,818	(242)	431	371	61
Repurchase of common stock	(297)			(297)
Issuance of senior unsecured convertible bonds	242		242
Settlement of senior unsecured convertible bonds	(42)		(403)	361
Stock-based compensation expense	61		61	46	(46)
Comprehensive income (loss):
Net income (loss)	810				802		8
Other comprehensive income (loss), net of tax	317					317
Comprehensive income (loss)	1,127
Dividends to noncontrolling interest	(6)						(6)
Dividends	(214)				(214)
Ending Balance at Dec. 31, 2017	$ 5,467	$ 1,157	$ 2,718	$ (132)	$ 973	$ 688	$ 63

Consolidated Statements of Equ7

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Common Stock [Member]
Dividends, per share	$ 0.24	$ 0.24	$ 0.4

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 810	$ 170	$ 110
Items to reconcile net income and cash flows from operating activities:
Depreciation and amortization	650	696	736
Interest and amortization of issuance costs on convertible bonds	34	22	21
Loss on financial instruments, net	16
Non-cash stock-based compensation	61	38	38
Other non-cash items	(85)	(85)	(108)
Deferred income tax	60	(34)	(93)
(Income) loss on equity-method investments	2	(7)	(2)
Impairment, restructuring charges and other related closure costs, net of cash payments	(6)	34	20
Changes in assets and liabilities:
Trade receivables, net	(206)	(121)	81
Inventories	(94)	63	(39)
Trade payables	141	68	(46)
Other assets and liabilities, net	324	199	128
Net cash from operating activities	1,707	1,043	846
Cash flows from investing activities:
Payment for purchase of tangible assets	(1,301)	(611)	(529)
Proceeds from sale of tangible assets	3	4	62
Payment for purchase of marketable securities	(99)
Net cash variation for joint ventures deconsolidation			(1)
Payment for purchase of intangible assets	(71)	(42)	(36)
Payment for disposal of equity investment			(13)
Proceeds from sale of financial assets			1
Payment for business acquisitions, net of cash and cash equivalents acquired		(78)
Net cash used in investing activities	(1,468)	(727)	(516)
Cash flows from financing activities:
Proceeds from long-term debt	7	13
Net proceeds from issuance of senior unsecured convertible bonds	1,502
Repayment of long-term debt	(119)	(191)	(200)
Repayment of issued debt	(1,000)
Repurchase of common stock	(297)
Dividends paid to stockholders	(214)	(251)	(350)
Dividends paid to noncontrolling interests	(6)	(6)	(6)
Payment of withholding tax on vested shares	(9)	(3)	(4)
Other financing activities		(1)
Net cash used in financing activities	(136)	(439)	(560)
Effect of changes in exchange rates	27	(19)	(16)
Net cash increase (decrease)	130	(142)	(246)
Cash and cash equivalents at beginning of the period	1,629	1,771	2,017
Cash and cash equivalents at end of the period	1,759	1,629	1,771
Supplemental cash information:
Interest paid	12	13	15
Income tax paid	$ 52	$ 42	$ 41

The Company

The Company	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	1. THE COMPANY STMicroelectronics N.V. (the “Company”) is registered in The Netherlands with its corporate legal seat in Amsterdam, the Netherlands, and its corporate headquarters located in Geneva, Switzerland. The Company is a global independent semiconductor company that designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, application-specific integrated circuits (“ASICs”), full custom devices and semi-custom devices and application-specific standard products (“ASSPs”) for analog, digital and mixed-signal applications. In addition, the Company participates in the manufacturing value chain of smartcard products, which includes the production and sale of both silicon chips and smartcards.

Accounting Policies

Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Accounting Policies	2. ACCOUNTING POLICIES The accounting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). All balances and values in the current and prior periods are in millions of U.S. dollars, except share and per-share amounts. Under Article 35 of the Company’s Articles of Association, the financial year extends from January 1 to December 31, which is the period-end of each fiscal year. 2.1 — Principles of consolidation The Company’s consolidated financial statements include the assets, liabilities, results of operations and cash flows of its majority-owned subsidiaries. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Intercompany balances and transactions have been eliminated in consolidation. The Company assesses each investment in equity securities to determine whether the investee is a Variable Interest Entity (“VIE”). The Company consolidates the VIEs for which the Company is determined to be the primary beneficiary. The primary beneficiary of a VIE is the party that: (i) has the power to direct the most significant activities of the VIE and (ii) is obligated to absorb losses or has the rights to receive returns that would be considered significant to the VIE. Assets, liabilities, and the noncontrolling interest of newly consolidated VIEs are initially measured at fair value in the same manner as if the consolidation resulted from a business combination. When the Company owns some, but not all, of the voting stock of a consolidated entity, the shares held by third parties represent a noncontrolling interest. The consolidated financial statements are prepared based on the total amount of assets and liabilities and income and expenses of the consolidated subsidiaries. However, the portion of these items that does not belong to the Company is reported on the line “Noncontrolling interest” in the consolidated financial statements. 2.2 — Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. The primary areas that require significant estimates and judgments by management include, but are not limited to: • sales returns and allowances, • inventory obsolescence reserves and normal manufacturing capacity thresholds to determine costs capitalized in inventory, • recognition and measurement of loss contingencies, • valuation at fair value of assets acquired or sold, including intangibles, goodwill, investments and tangible assets, • annual and trigger-based impairment review of goodwill and intangible assets, as well as the assessment, in each reporting period, of events, which could trigger impairment testing on long-lived assets, • assessment of other-than-temporary impairment charges on financial assets, including equity-method investments, • recognition and measurement of restructuring charges and other related exit costs, • assumptions used in assessing the number of awards expected to vest on stock-based compensation plans, • assumptions used in calculating pension obligations and other long-term employee benefits, • allocation between debt and equity of the various components of an issued, or converted, hybrid instrument and measurement at fair value of the liability component based on a discount rate adjustment technique income approach, and • determination of the amount of taxes expected to be paid and tax benefit expected to be received, including deferred income tax assets, valuation allowance and provisions for uncertain tax positions and claims. The Company bases the estimates and assumptions on historical experience and on various other factors such as market trends, market information used by market participants and the latest available business plans that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. While the Company regularly evaluates its estimates and assumptions, the actual results experienced by the Company could differ materially and adversely from those estimates. 2.3 — Foreign currency The U.S. dollar is the reporting currency of the Company. The U.S. dollar is the currency of the primary economic environment in which the Company operates since the worldwide semiconductor industry uses the U.S. dollar as a currency of reference for actual pricing in the market. Furthermore, the majority of the Company’s transactions are denominated in U.S. dollars, and revenues from external sales in U.S. dollars largely exceed revenues in any other currency. However, certain significant costs are largely incurred in the countries of the Euro zone and other non-U.S. dollar currency areas. The functional currency of each subsidiary of the Company is either the local currency or the U.S. dollar, depending on the basis of the economic environment in which each subsidiary operates. Foreign currency transactions, including operations in local currency when the U.S. dollar is the functional currency, are measured into the functional currency using the prevailing exchange rate. Foreign exchange gains and losses resulting from the re-measurement at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statements of income on the line “Other income and expenses, net”. For consolidation purposes, the results and financial position of the subsidiaries whose functional currency is different from the U.S. dollar are translated into the reporting currency as follows: (a) assets and liabilities for each consolidated balance sheet presented are translated at the closing exchange rate as of the balance sheet date; (b) income and expenses for each consolidated statement of income presented are translated at the average monthly exchange rate; (c) the resulting exchange differences are reported as Currency Translation Adjustments (“CTA”), a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income. 2.4 — Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with external financial institutions and other short-term highly liquid investments with original maturities to the Company of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Bank overdrafts are not netted against cash and cash equivalents and are shown as part of current liabilities on the consolidated balance sheets. 2.5 — Trade accounts receivable Trade accounts receivable are amounts due from customers for goods sold and services rendered to third parties in the ordinary course of business. They are reported net of allowances for doubtful accounts. The Company maintains an allowance for doubtful accounts for potential estimated losses resulting from its customers’ inability to make required payments. The Company bases its estimates on historical collection trends and records an allowance accordingly. Additionally, the Company evaluates its customers’ financial condition periodically and records an allowance for any specific account it considers as doubtful. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the charge is recognized on the line “Selling, general and administrative” in the consolidated statements of income. Subsequent recoveries, if any, of amounts previously provided for are credited against the same line in the consolidated statements of income. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivable. In the event of transfers of receivables such as factoring, the Company derecognizes the receivables only to the extent that the Company has surrendered control over the receivables in exchange for a consideration other than beneficial interest in the transferred receivables. 2.6 — Inventories Inventories are stated at the lower of cost and net realizable value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the unused capacity are not included in the valuation of inventories but charged directly to cost of sales. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company performs, on a continuous basis, inventory write-offs of products, which have the characteristics of slow-moving, old production dates and technical obsolescence. Indeed, the Company evaluates its product inventory to identify obsolete or slow-selling items as well as inventory that is not of saleable quality and records a specific reserve if the Company estimates the inventory will eventually become obsolete. Reserve for obsolescence is estimated for excess uncommitted inventory based on the previous quarter sales, order backlog and production plans. 2.7 — Income taxes Income tax for the period comprises current and deferred income tax. Current income tax represents the income tax expected to be paid or the tax benefit expected to be received related to the current year taxable profit and loss in each tax jurisdiction. Deferred income tax is recognized, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit and loss. Moreover, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is determined using tax rates and laws that are enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect on deferred tax assets and liabilities from changes in tax laws and tax rates is recognized on the line “Income tax benefit (expense)” in the consolidated statements of income in the period in which the law is enacted. Deferred income tax assets are recognized in full, but the Company assesses whether future taxable profit will be available against which temporary differences can be utilized. A valuation allowance is provided for deferred tax assets when management considers it is more likely than not that they will not be realized. The Company recognizes a deferred tax liability on undistributed earnings of subsidiaries when there is a presumption that the earnings will be remitted to the parent. A deferred tax asset is recognized on compensation for the grant of stock awards to the extent that such charge constitutes a temporary difference in the subsidiaries’ local tax jurisdictions. Changes in the stock price do not impact the deferred tax asset and do not result in any adjustments prior to vesting. When the actual tax deduction is determined, generally upon vesting, it is compared to the deferred tax asset as recognized over the vesting period. When a windfall tax benefit is determined (as the excess tax benefit of the actual tax deduction over the deferred tax asset) the excess tax benefit is recorded as a discrete item in the consolidated statements of income on the line “Income tax benefit (expense)”. In case of shortfall, only the actual tax benefit is to be recognized in the consolidated financial statements and the Company writes off the deferred tax asset at the level of the actual tax deduction. At each reporting date, the Company assesses all material open income tax positions in all tax jurisdictions to determine any uncertain tax positions. The Company uses a two-step process for the evaluation of uncertain tax positions. The first step consists in determining whether a benefit may be recognized; the assessment is based on a more-likely-than-not recognition threshold. If the sustainability is lower than 50%, a full provision should be accounted for. In case of a sustainability threshold in step one higher than 50%, the Company must perform a second step in order to measure the amount of recognizable tax benefit, net of any liability for tax uncertainties. The measurement methodology in step two is based on a “cumulative probability” approach, resulting in the recognition of the largest amount that is greater than 50% likely of being realized upon settlement with the taxing authority. The unrecognized tax benefit is recorded as a reduction of a deferred tax asset to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of the tax position. The Company accrues for interest and penalties on uncertain tax liabilities reported on the consolidated balance sheets. Interests and penalties are classified as components of income tax expense in the consolidated statements of income. 2.8 — Assets held for sale Asset groups are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. The asset groups are classified as assets held for sale when the following conditions have been met: management has approved the plan to sell; assets are available for immediate sale; assets are actively being marketed; sale is probable of occurring within one year; price is reasonable in the market and it is unlikely that there will be significant changes in the assets to be sold or a withdrawal to the plan to sell. Asset groups classified as held for sale are reported as current assets in the consolidated balance sheets at the lower of their carrying amount and fair value less costs to sell. Long-lived assets classified as held for sale are no longer depreciated. When the held-for-sale accounting treatment requires an impairment charge for the difference between the carrying amount and fair value, such impairment is reflected on the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs”. 2.9 — Business combinations and goodwill The purchase accounting method is applied to all business combinations. The identifiable assets acquired, equity instruments issued, and liabilities assumed are measured at fair value on the acquisition date. Any contingent purchase price and acquired contingencies are recorded at fair value on the acquisition date and at each reporting date. Acquisition-related transaction costs and restructuring costs relating to the acquired business are expensed as incurred. Acquired in-process research and development (“IPR&D”) is capitalized and recorded as an intangible asset on the acquisition date, subject to impairment testing until the research or development is completed or abandoned. The excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed is recorded as goodwill. In case of a bargain purchase, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed; the noncontrolling interest in the acquiree, if any; the Company’s previously held equity interest in the acquiree, if any; and the consideration transferred. If after this review, a bargain purchase is still indicated, it is recognized in earnings attributed to the Company. The purchase of additional interests in a partially owned subsidiary is treated as an equity transaction as well as all transactions concerning the sale of subsidiary stock or the issuance of stock by the partially owned subsidiary as long as there is no change in control of the subsidiary. If as a consequence of selling subsidiary shares, the Company no longer controls the subsidiary, the Company recognizes a gain or loss in earnings. Goodwill represents the excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized but is tested annually for impairment, or more frequently if indicators of impairment exist. Goodwill subject to potential impairment is tested at a reporting unit level. The impairment test determines whether the fair value of each reporting unit for which goodwill is allocated is lower than the total carrying amount of relevant net assets allocated to such reporting unit, including its allocated goodwill. If lower, the implied fair value of the reporting unit goodwill is then compared to the carrying value of the goodwill and an impairment charge is recognized for any excess in the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs”. Significant management judgments and estimates are used in forecasting the future discounted cash flows associated with the reporting unit, including: the applicable industry’s sales volume forecast and selling price evolution, the reporting unit’s market penetration and its revenues evolution, the market acceptance of certain new technologies and products, the relevant cost structure, the discount rates applied using a weighted average cost of capital and the perpetuity rates used in calculating cash flow terminal values. 2.10 — Intangible assets with finite useful lives Intangible assets subject to amortization include the intangible assets purchased from third parties recorded at cost and intangible assets acquired in business combinations recorded at fair value. Amortization begins when the intangible asset is available for use and is calculated using the straight-line method to allocate the cost of the intangible assets over their estimated useful lives. The carrying value of intangible assets with finite useful lives is evaluated whenever changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs” for the amount by which the asset’s carrying amount exceeds its fair value. The Company evaluates the remaining useful life of an intangible asset at each reporting date to determine whether events and circumstances warrant a revision to the remaining period of amortization. Trademarks, technologies and licenses Separately acquired trademarks and licenses are recorded at historical cost. Trademarks and licenses acquired in a business combination are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life which ranges from 3 to 7 years and are carried at cost less accumulated amortization and impairment losses, if any. Computer software Separately acquired computer software is recorded at historical cost. Costs associated with maintaining computer software programs are expensed as incurred and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to their intended use. The capitalization of costs for internally generated software developed by the Company for its internal use begins when the preliminary project stage is completed and when the Company, implicitly or explicitly, authorizes and commits to funding a computer software project. It must be probable that the project will be completed and will be used to perform the function intended. Amortization on computer software begins when the software is available for use and is calculated using the straight-line method over the estimated useful life, which does not exceed 4 years. 2.11 — Property, plant and equipment Property, plant and equipment are stated at historical cost, net of accumulated depreciation and any impairment losses. Property, plant and equipment acquired in a business combination are recognized at fair value at the acquisition date. Major additions and improvements are capitalized, while minor replacements and repairs are expensed and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to their intended use. Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: Buildings 33 years Facilities and leasehold improvements 5-10 years Machinery and equipment 3-10 years Computer and R&D equipment 3-6 years Other 2-5 years The Company evaluates each period whether there is reason to suspect that tangible assets or groups of assets held and used might not be recoverable. Several impairment indicators exist for making this assessment, such as: restructuring plans, significant changes in the technology, market, economic or legal environment in which the Company operates, available evidence of obsolescence of the asset, or indication that its economic performance is, or will be, worse than expected. In determining the recoverability of assets to be held and used, the Company initially assesses whether the carrying value of the tangible assets or group of assets exceeds the undiscounted cash flows associated with these assets. If exceeded, the Company then evaluates whether an impairment charge is required by determining if the asset’s carrying value also exceeds its fair value. This fair value is normally estimated by the Company based on independent market appraisals or the sum of discounted future cash flows, using market assumptions such as the utilization of the Company’s fabrication facilities and the ability to upgrade such facilities, change in the selling price and the adoption of new technologies. The Company also evaluates, and adjusts if appropriate, the assets’ useful lives, at each date or when impairment indicators are identified. When property, plant and equipment are retired or otherwise disposed of, the net book value of the assets is removed from the Company’s books. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in “Other income and expenses, net” in the consolidated statements of income. Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. Assets leased under capital leases are included in “Property, plant and equipment, net” on the consolidated balance sheets and recorded at inception at the lower of their fair value and the present value of the minimum lease payments. They are depreciated over the shorter of their estimated useful life and the lease term unless there is a reasonable certainty that ownership will be obtained by the end of the lease term. The financial liability corresponding to the contractual obligation to proceed of future lease payments is included as “Long-term debt” on the consolidated balance sheets, as described in Note 2.14. Lease arrangements classified as operating leases are arrangements in which the lessor retains a significant portion of the risks and rewards of ownership of the leased assets. Payments made under operating leases are recognized on a straight-line basis over the lease period and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to the intended use of the leased asset. 2.12 — Investments in equity securities Investments in equity securities that have readily determinable fair values and for which the Company does not have the ability to exercise significant influence are classified as trading or available-for-sale equity securities, as described in Note 2.23. Investments in equity securities without readily determinable fair values and for which the Company does not have the ability to exercise significant influence are accounted for under the cost-method. Under the cost-method of accounting, investments are carried at historical cost and are adjusted only for declines in value deemed to be other-than-temporary. The fair value of a cost-method investment is estimated on a non-recurring basis when there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. An impairment loss is immediately recorded in the consolidated statements of income on the line “Gain (loss) on financial instruments, net” when it is assessed to be other-than-temporary and is based on the Company’s assessment of any significant and sustained reductions in the investment’s fair value. For unquoted equity securities, assumptions and estimates used in measuring fair value include the use of recent arm’s length transactions when they reflect the orderly exit price of the investments. Gains and losses on investments sold are determined on the specific identification method and are recorded as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. Equity-method investments are all entities over which the Company has the ability to exercise significant influence but not control, generally representing a shareholding of between 20% and 50% of the voting rights. These investments are valued under the equity-method and are initially recognized at cost. Goodwill on equity-method investments is included in the carrying value of the investment and is not individually tested for impairment. The Company’s share in the result of operations of equity-method investments is recognized in the consolidated statements of income on the line “Income (loss) on equity-method investments” and in the consolidated balance sheets as an adjustment to the carrying amount of the investments. Where there has been a change recognized directly in the equity of the investee, the Company recognizes its share in the adjustment, when applicable, directly in the consolidated statement of equity. The financial statements of the equity-method investments are prepared for the same reporting period as the Company or with a time lag not exceeding three months if the investee cannot issue consolidated financial statements within the closing timeframe requirements of the Company. At each period-end, the Company assesses whether there is objective evidence that its interests in equity-method investments are impaired. Once a determination is made that an other-than-temporary impairment exists, the Company writes down the carrying value of the equity-method investment to its fair value at the balance sheet date, which establishes a new cost basis. The fair value of an equity-method investment is measured on a non-recurring basis using primarily a combination of an income approach, based on discounted cash flows, and a market approach with financial metrics of comparable public companies. 2.13 — Provisions In determining loss contingencies, the Company considers the likelihood of the incurrence of a liability as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss from a loss contingency is accrued when information available indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and when the amount of the loss can be reasonably estimated. 2.14 — Long-term debt (a) Convertible debt The Company evaluates at initial recognition of a convertible debt the different components and features of the hybrid instruments and determines whether certain elements are embedded derivative instruments which require bifurcation. Components of convertible debt instruments that may be settled in cash upon conversion based on a net-share settlement basis are accounted for separately as long-term debt and equity when the conversion feature of the convertible bonds constitute an embedded equity instrument. When an equity instrument is identified, proceeds from issuance are allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. The liability component is measured as the fair value of a similar nonconvertible debt, which results in the recognition of a debt discount. On subsequent periods, the Company amortizes the debt discount through earnings on the line “Interest income (expense), net” of the consolidated statements of income, using the interest method, based on the expected maturity of the debt. The equity component, reported on the line “Capital Surplus” of the consolidated statement of shareholders’ equity, is not remeasured. Debt issuance costs are reported as a deduction of debt. They are subsequently amortized through earnings on the line “Interest income (expense), net” of the consolidated statements of income, using the effective interest rate method. In case of conversion from the bondholders, the fair value of the consideration transferred is allocated between the liability component and the equity component. The difference between the carrying amount of the debt at the settlement date and the fair value of the debt component is recorded in earnings as a loss on debt extinguishment and reported on the line “Loss on financial instruments, net” of the consolidated statements of income. The liability component is measured as the fair value of a similar nonconvertible debt prior to settlement. The reacquired equity component is recorded in equity and reported on the line Capital Surplus of the consolidated statement of shareholders’ equity. (b) Bank loans Bank loans and non-convertible senior bonds are recognized at historical cost, net of debt issuance costs incurred. They are subsequently reported at amortized cost; any difference between the proceeds (net of debt issuance costs) and the redemption value is recognized through earnings on the line “Interest income (expense), net” of the consolidated statements of income over the period of the borrowings using the effective interest rate method. (c) Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. The Company reports the leased assets on the line “Property, plant and equipment, net” on the consolidated balance sheets and recognizes a financial liability for the contractual obligation to future lease payments, which is reported as “Long-term debt” on the consolidated balance sheets. Each lease payment is allocated between the debt repayment and interest expense. 2.15 — Employee benefits (a) Pension obligations The Company sponsors various pension schemes for its employees. These schemes conform to local regulations and practices in the countries in which the Company operates. Such plans include both defined benefit and defined contribution plans. For defined benefit pension plans, the liability recognized in the consolidated balance sheets is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The overfunded or underfunded status of the defined benefit plans are calculated as the difference between plan assets and the projected benefit obligations. Significant estimates are used in determining the assumptions incorporated in the calculation of the pension obligations, which is supported by input from independent actuaries. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in “Accumulated Other Comprehensive Income (Loss)” in the consolidated statements of equity and are charged or credited to income over the employees’ expected average remaining working lives. Past service costs are recognized immediately in earnings, unless the changes to the pension scheme are conditional on the employees r

Marketable Securities

Marketable Securities	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	3. MARKETABLE SECURITIES Changes in the value of marketable securities, as reported in current assets on the consolidated balance sheets as at December 31, 2017 and December 31, 2016 are detailed in the tables below: December 31, Purchase Sale Change in Change in December 31, U.S. Treasury debt securities 335 99 — (3 ) — 431 Total 335 99 — (3 ) — 431 * Other Comprehensive Income December 31, Purchase Sale Change in Change in December 31, U.S. Treasury debt securities 335 — — — — 335 Total 335 — — — — 335 * Other Comprehensive Income As at December 31, 2017, the Company held $431 million of U.S. Treasury debt securities. In 2017, the Company acquired $99 million U.S. Treasury Bills, which were transferred to a financial institution with high credit quality as part of a short-term securities lending transaction in compliance with the Company’s policy to optimize the return on its short-term interest rate investments. The Company, acting as the securities lender, does not hold any collateral on this unsecured securities lending transaction. The Company retains effective control on the transferred securities. The lending transaction has a renewable 35-day duration. The debt securities had an average rating of Aaa/AA+/AAA from Moody’s, S&P and Fitch, respectively, with a weighted average maturity of 1.9 years. The debt securities were reported as current assets on the line “Marketable Securities” on the consolidated balance sheet as at December 31, 2017, since they represented investments of funds available for current operations. The bonds were classified as available-for-sale and recorded at fair value as at December 31, 2017. This fair value measurement corresponds to a Level 1 fair value hierarchy measurement. The aggregate amortized cost basis of these securities totaled $432 million as at December 31, 2017.

Trade Accounts Receivable, Net

Trade Accounts Receivable, Net	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Trade Accounts Receivable, Net	4. TRADE ACCOUNTS RECEIVABLE, NET Trade accounts receivable, net consisted of the following: December 31, December 31, Trade accounts receivable 1,164 951 Allowance for doubtful accounts (15 ) (12 ) Total 1,149 939 There was no bad debt expense in 2017, while in 2016 it was $3 million and in 2015 it was $2 million. In 2017, the Company’s largest customer, Apple represented 10.5% of consolidated net revenues, reported in the ADG, AMS and MDG segments, while no customers represented over 10% of consolidated net revenues in 2016 and 2015. As at December 31, 2017 and 2016, there were no trade accounts receivable sold without recourse.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories	5. INVENTORIES Inventories are stated at the lower of cost and net realizable value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the unused capacity are not included in the valuation of inventories but charged directly to cost of sales. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Reserve for obsolescence is estimated for excess uncommitted inventories based on the previous quarter’s sales, backlog of orders and production plans. Inventories, net of reserve, consisted of the following: December 31, December 31, Raw materials 125 81 Work-in-process 787 756 Finished products 423 336 Total 1,335 1,173

Other Current Assets

Other Current Assets	12 Months Ended
	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	6. OTHER CURRENT ASSETS Other current assets consisted of the following: December 31, 2017 December 31, 2016 Receivables from government agencies 161 150 Taxes and other government receivables 94 39 Advances 35 28 Prepayments 39 47 Loans and deposits 8 9 Interest receivable 6 4 Derivative instruments 41 2 Other current assets 41 32 Total 425 311 Derivative instruments are further described in Note 24.

Business Combination

Business Combination	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Business Combination	7. BUSINESS COMBINATION On July 28, 2016, the Company completed a transaction to acquire ams’ (SIX: AMS) assets and workforce related to Near-Field Communication (NFC) and Radio-frequency identification (RFID) Reader business. The acquired business, combined with the Company’s secure microcontrollers, positions the Company for a significant growth opportunity, with a complete portfolio of best-in-class technologies, products and competencies that comprehensively address the full range of the NFC and RFID markets for a wide customer base. The Company acquired intellectual property, technologies, products and business highly complementary to its secure microcontroller solutions serving mobile devices, wearables, banking, identification, industrial, automotive and IoT markets. As part of the transaction, 46 technical experts from ams have also been transferred to the Company. This transaction has been accounted for as a business combination. The activities of this business are included in the Microcontrollers and Digital ICs Group (MDG) reportable segment. The purchase price allocation was finalized in the fourth quarter of 2016 and did not result in any adjustments to the preliminary allocation performed in the third quarter of 2016. The fair value of the identifiable assets and assumed liabilities acquired from ams at acquisition date were as follows: Fair value recognized Property, plant and equipment 2 Technology 6 In-process R&D 40 Goodwill 42 Total net assets at fair value 90 Purchase consideration 90 The purchase consideration includes a cash payment of $78 million and the acquisition-date fair value of a sales earn-out of $12 million which in any case will not exceed $37 million. Goodwill on this transaction arose principally due to the value of the assembled workforce.

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	8. GOODWILL Goodwill allocated to reportable segments as of December 31, 2017 and 2016 and changes in the carrying amount of goodwill during the years ended December 31, 2017 and 2016 are as follows: Automotive Microcontrollers Analog, Others Total December 31, 2015 — 74 2 — 76 Business combination — 42 — — 42 Foreign currency translation — (2 ) — — (2 ) December 31, 2016 — 114 2 — 116 Foreign currency translation — 7 — — 7 December 31, 2017 — 121 2 — 123 The segment reallocation as described in Note 26 did not impact goodwill. As described in Note 7, the acquisition of ams’s NFC and RFID Reader business resulted in the recognition of a $42 million goodwill which has been included in the MDG segment to align the goodwill for the acquired businesses with the segment for which their activities will be reported. During the third quarter of 2017, the Company performed its annual impairment campaign. The Company did not elect to perform a qualitative assessment. The impairment test was conducted following a two-step process. In the first step, the Company compared the fair value of the reporting unit tested to its carrying value. Based upon the first step of the goodwill impairment test, no impairment was recorded since the fair value of the reporting unit exceeded its carrying value. Goodwill as at December 31, 2017 and 2016 is net of accumulated impairment losses of $102 million, of which $96 million relates to the MDG segment and $6 million to Others. In 2017, 2016 and 2015, no impairment loss was recorded by the Company on any of its reporting units’ goodwill.

Other Intangible Assets

Other Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	9. OTHER INTANGIBLE ASSETS Other intangible assets consisted of the following: December 31, 2017 Gross Cost Accumulated Net Cost Technologies & licences 668 (566 ) 102 Contractual customer relationships 5 (5 ) — Purchased & internally developed software 440 (383 ) 57 Construction in progress 50 — 50 Other intangible assets 65 (65 ) — Total 1,228 (1,019 ) 209 December 31, 2016 Gross Cost Accumulated Net Cost Technologies & licences 618 (534 ) 84 Contractual customer relationships 4 (4 ) — Purchased & internally developed software 407 (347 ) 60 Construction in progress 51 — 51 Other intangible assets 65 (65 ) — Total 1,145 (950 ) 195 The line “Construction in progress” in the table above includes internally developed software under construction and software not ready for use. As described in Note 7, the acquisition of ams’s NFC and RFID Reader business resulted in the recognition in the year ended December 31, 2016 of technology for $6 million in “Technologies & licences” and in-process R&D for $40 million in “Construction in progress”. The amortization expense in 2017, 2016 and 2015 was $58 million, $61 million and $60 million, respectively. The estimated amortization expense of the existing intangible assets for the following years is: Year 2018 75 2019 58 2020 41 2021 22 2022 10 Thereafter 3 Total 209 In 2017, there was no impairment of intangible assets, while in 2016 and 2015, the Company impaired $4 million and $10 million, respectively, of acquired technologies for which it was determined that they had no alternative future use. In addition, in 2015, $6 million of digital long-lived assets were fully impaired due to the fact that their projected cash flows, over their remaining useful life, were less than their carrying value.

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	10. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: December 31, 2017 Gross Accumulated Net Land 81 — 81 Buildings 891 (479 ) 412 Facilities & leasehold improvements 3,074 (2,782 ) 292 Machinery and equipment 14,529 (12,569 ) 1,960 Computer and R&D equipment 397 (351 ) 46 Other tangible assets 118 (99 ) 19 Construction in progress 284 — 284 Total 19,374 (16,280 ) 3,094 December 31, 2016 Gross Accumulated Net Land 73 — 73 Buildings 788 (412 ) 376 Facilities & leasehold improvements 2,713 (2,474 ) 239 Machinery and equipment 12,808 (11,415 ) 1,393 Computer and R&D equipment 362 (324 ) 38 Other tangible assets 105 (96 ) 9 Construction in progress 159 — 159 Total 17,008 (14,721 ) 2,287 The line “Construction in progress” in the table above includes property, plant and equipment under construction and equipment under qualification before operating. Facilities & leasehold improvements, machinery and equipment and other tangible assets include assets acquired under capital lease. The net cost of assets under capital lease was less than $1 million as of both December 31, 2017 and December 31, 2016. As described in Note 7, the acquisition of ams’s NFC and RFID Reader business resulted in the recognition of building and machinery for $2 million in the year ended December 31, 2016. The depreciation charge, which includes amortization for capital lease, was $592 million, $635 million and $676 million in 2017, 2016 and 2015, respectively. Tax incentives and capital investment funding has totaled $139 million for the year ended December 31, 2017, $15 million for the year ended December 31, 2016 and $7 million for the year ended December 31, 2015. Tax incentives and public funding reduced depreciation charges by $21 million, $6 million and $4 million in 2017, 2016 and 2015, respectively. For the years ended December 31, 2017, 2016 and 2015 the Company sold property, plant and equipment for cash proceeds of $3 million, $4 million and $62 million, respectively. For the year ended December 31, 2016, the Company impaired $3 million of long-lived assets reclassified as Assets Held for Sale. There was no impairment recognized for the years ended December 31, 2017 and 2015.

Long-Term Investments

Long-Term Investments	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Long-Term Investments	11. LONG-TERM INVESTMENTS December 31, December 31, Equity-method investments 45 45 Cost-method investments 12 12 Total 57 57 Equity-method investments Equity-method investments as at December 31, 2017 and December 31, 2016 were as follows: December 31, 2017 December 31, 2016 Carrying Ownership Carrying Ownership ST-Ericsson SA, in liquidation 45 50.0 % 45 50.0 % Total 45 45 ST-Ericsson SA, in liquidation On February 3, 2009, the Company announced the closing of a transaction to combine the businesses of Ericsson Mobile Platforms and ST-NXP Wireless into a new venture, named ST-Ericsson. As part of the transaction, the Company received an interest in ST-Ericsson Holding AG in which the Company owned 50% plus a controlling share. In 2010, ST-Ericsson Holding AG was merged in ST-Ericsson SA. The Company evaluated that ST-Ericsson SA was a variable interest entity (VIE). The Company determined that it controlled ST-Ericsson SA and therefore consolidated ST-Ericsson SA. On September 9, 2013, the Company sold 1 ST-Ericsson SA share to Ericsson for its nominal value changing the ownership structure of ST-Ericsson SA to bring both partners to an equal ownership proportion. As a result and in combination with the new shareholder agreement, the Company lost the control of ST-Ericsson SA and as such ST-Ericsson SA was deconsolidated from the Company’s consolidated financial statements. The deconsolidation of ST-Ericsson SA did not result in a gain or loss for the Company. The fair value of the Company’s retained noncontrolling interest was evaluated at $55 million. In addition, the Company and its partner signed funding commitment letters, capped at $149 million for each partner, to the residual joint wind-down operations to ensure solvency. These were not drawn as of December 31, 2017. Before the deconsolidation of ST-Ericsson SA, certain assets and companies of the ST-Ericsson SA group of companies were transferred to both partners for their net book value which was representative of their fair value. The transactions did not result in cash exchange between the partners. ST-Ericsson SA entered into liquidation on April 15, 2014. For the years 2017, 2016 and 2015, the line “Income (loss) on equity-method investments” in the Company’s consolidated statement of income included a profit of less than $1 million, $1 million and $1 million, respectively, in relation with ST-Ericsson SA. Cost-method investments Cost-method investments as at December 31, 2017 and 2016 are equity securities with no readily determinable fair value. It includes principally the Company’s investment in DNP Photomask Europe S.p.A (“DNP”). The Company has identified the joint venture as a VIE, but has determined that it is not the primary beneficiary. The significant activities of DNP revolve around the creation of masks and development of high level mask technology. The Company does not have the power to direct such activities. The Company’s current maximum exposure to loss as a result of its involvement with the joint venture is limited to its investment. The Company has not provided additional financial support in years 2017 and 2016 and currently has no requirement or intent to provide further financial support to the joint venture.

Other Non-Current Assets

Other Non-Current Assets	12 Months Ended
	Dec. 31, 2017
Investments, All Other Investments [Abstract]
Other Non-Current Assets	12. OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: December 31, December 31, Available-for-sale equity securities 11 11 Trading equity securities 9 8 Long-term State receivables 417 388 Long-term receivables from third parties 1 1 Prepaid for pension 1 — Deposits and other non-current assets 36 26 Total 475 434 Long-term State receivables include receivables related to funding and receivables related to tax refund. Funding are mainly public grants to be received from governmental agencies in Italy and France as part of long-term research and development, industrialization and capital investment projects. Long-term receivables related to tax refund correspond to tax benefits claimed by the Company in certain of its local tax jurisdictions, for which collection is expected beyond one year. In 2017, the Company entered into a factoring transaction to accelerate the realization in cash of some non-current assets. As at December 31, 2017, $118 million of the non-current assets were sold without recourse, compared to $127 million as at December 31, 2016, with a financial cost of less than $1 million for both periods.

Other Payables and Accrued Liab

Other Payables and Accrued Liabilities	12 Months Ended
	Dec. 31, 2017
Payables and Accruals [Abstract]
Other Payables and Accrued Liabilities	13. OTHER PAYABLES AND ACCRUED LIABILITIES Other payables and accrued liabilities consisted of the following: December 31, 2017 December 31, 2016 Employee related liabilities 390 297 Employee compensated absences 141 111 Taxes other than income taxes 65 58 Advances 89 39 Payables to equity-method investments 49 49 Derivative instruments 1 44 Provision for restructuring 46 49 Defined benefit plans — current portion 9 9 Defined contribution plans — accrued benefits Royalties 19 23 16 20 Others 65 58 Total 897 750 Derivative instruments are further described in Note 24. Other payables and accrued liabilities also include individually insignificant amounts as of December 31, 2017 and December 31, 2016, presented cumulatively in line “Others”.

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	14. LONG-TERM DEBT Long-term debt consisted of the following: December 31, December 31, Funding program loans from European Investment Bank: 2.56% due 2020, floating interest rate at Libor + 1.199% 38 50 2.56% due 2020, floating interest rate at Libor + 1.056% 83 110 0.59% due 2020, floating interest rate at Euribor + 0.917% 45 53 2.09% due 2021, floating interest rate at Libor + 0.525% 120 150 2.22% due 2021, floating interest rate at Libor + 0.572% 115 144 Dual tranche senior unsecured convertible bonds Zero-coupon, due 2019 (Tranche A) — 564 1.0% due 2021 (Tranche B) — 362 Zero-coupon, due 2022 (Tranche A) 662 — 0.25% due 2024 (Tranche B) 616 — Other funding program loans: 0.31% (weighted average), due 2018-2023, fixed interest rate 20 14 Other long-term loans: 1.95% (weighted average), due 2017, fixed interest rate — 1 0.41% (weighted average), due 2018, fixed interest rate 1 1 0.87% (weighted average), due 2020, fixed interest rate 1 2 Total long-term debt 1,701 1,451 Less current portion (118 ) (117 ) Total long-term debt, less current portion 1,583 1,334 Long-term debt is denominated in the following currencies: December 31, 2017 December 31, 2016 U.S. dollar 1,634 1,380 Euro 67 71 Total 1,701 1,451 The European Investment Bank’s loans denominated in Euros, but drawn in U.S. dollars, are classified as U.S. dollar-denominated debt. On July 3, 2014, the Company issued $1,000 million principal amount of dual tranche senior unsecured convertible bonds (Tranche A for $600 million and Tranche B for $400 million), due 2019 and 2021, respectively. Tranche A bonds were issued as zero-coupon bonds while Tranche B bonds bore a 1% per annum nominal interest, payable semi-annually. The conversion price at issuance was approximately $12, equivalent to a 30% and a 31% premium, respectively, on each tranche. On October 3, 2016, the conversion price was adjusted up to 1.24% on each tranche, pursuant to a dividend adjustment symmetric provision, which corresponded to 16,491 and 16,366 equivalent shares per each $200,000 bond par value for Tranche A and Tranche B, respectively. On October 2, 2017, the conversion price was adjusted up to 1.16% on Tranche B, pursuant to a dividend adjustment symmetric provision, which corresponded to 16,178 equivalent shares per each $200,000 bond par value. The bonds were convertible by the bondholders or were callable by the issuer upon certain conditions, in both cases on a full-cash, full-shares or net-share settlement basis at issuer’s decision. The net proceeds from the bond offering were approximately $994 million, after deducting issuance costs payable by the Company. Proceeds were allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. The liability component was measured at fair value based on a discount rate adjustment technique (income approach), which corresponded to a Level 3 fair value hierarchy measurement. The fair value of the liability component at initial recognition totaled $878 million and was estimated by calculating the present value of cash flows using a discount rate of 2.40% and 3.22% (including 1% per annum nominal interest), respectively, on each tranche, which were determined to be consistent with the market rates at the time for similar instruments with no conversion rights. An amount of $121 million, net of allocated issuance costs of $1 million, was recorded in shareholders’ equity as the value of the conversion features of the instruments. Unamortized debt discount and issuance costs on the issued convertible debt totaled $74 million as at December 31, 2016. In the second quarter of 2017, the Company issued a redemption notice to inform bondholders of the early redemption of the Tranche A bonds in July 2017. As a consequence, bondholders exercised their conversion rights for $598 million nominal value on the total of $600 million of the Tranche A. The remainder amount of $2 million was early redeemed in cash by the Company. Each conversion exercised by the bondholders was net-share settled, upon the Company’s election. As a result, the Company settled $600 million in cash and approximately 13.0 million shares from treasury shares. The consideration transferred in shares was a non-cash item and, as such, was not reported in the consolidated statement of cash flows for the year ended December 31, 2017. The Company allocated the total consideration transferred between debt and equity by measuring at fair value the liability component of Tranche A prior to settlement then determining the equity component as a residual amount. The liability component was measured at fair value based on a discount rate adjustment technique (income approach), which corresponded to a Level 3 fair value hierarchy measurement and consisted in calculating the present value of cash flows using an average estimated discount rate of 2.09%, which corresponds to current market rates for similar bonds that have no conversion rights. The fair value of the liability component, as measured prior to extinguishment was $574 million for Tranche A bonds, which generated a loss amounting to $5 million, reported on the line “Loss on financial instruments, net” in the consolidated statement of income. Between September 13, 2017 and October 10, 2017, bondholders exercised their conversion rights for $340 million nominal value on the total of $400 million of the Tranche B bonds. On October 11, 2017, the Company issued a redemption notice to inform bondholders of the early redemption of the remaining $60 million nominal value of the Tranche B on November 10, 2017. As a consequence, bondholders exercised their conversion rights for $59 million nominal value on the remaining $60 million of the Tranche B. The remainder amount of $1 million was early redeemed in cash by the Company. As the Company elected to net share settle the bonds, each conversion followed the process defined in the original terms and conditions of the convertible bonds, which determined the actual number of shares to be transferred upon each conversion. As a result, the Company settled $400 million in cash and approximately 13.7 million shares from treasury shares, The consideration transferred in shares was a non-cash item and, as such, was not reported in the consolidated statement of cash flows for the year ended December 31, 2017. The Company allocated the total consideration transferred between debt and equity by measuring at fair value the liability component of Tranche B prior to settlement then determining the equity component as a residual amount. The liability component was measured at fair value based on a discount rate adjustment technique (income approach), which corresponded to a Level 3 fair value hierarchy measurement and consisted in calculating the present value of cash flows using an average estimated discount rate of 2.47%, which corresponds to current market rates for similar bonds that have no conversion rights. The fair value of the liability component, as measured prior to extinguishment was $370 million for Tranche B bonds, which generated a loss amounting to $11 million, reported on the line “Loss on financial instruments, net” in the consolidated statement of income. On July 3, 2017, the Company issued a $1.5 billion principal amount of dual tranche senior unsecured convertible bonds (Tranche A and Tranche B for $750 million each tranche), due 2022 and 2024, respectively. Tranche A bonds were issued at 101.265% as zero-coupon bonds while Tranche B bonds were issued at par and bear a 0.25% per annum nominal interest, payable semi-annually. The conversion price at issuance was $20.54 dollar, equivalent to a 37.5% premium on both tranches, which corresponds to 9,737 equivalent shares per each $200,000 bond par value. The bonds are convertible by the bondholders or are callable by the issuer upon certain conditions, on a net-share settlement basis, except if the issuer elects a full-cash or full-share conversion as an alternative settlement. The net proceeds from the bond offering were $1,502 million, after deducting issuance costs payable by the Company. Proceeds were allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. The liability component was measured at fair value based on a discount rate adjustment technique (income approach), which corresponded to a Level 3 fair value hierarchy measurement. The fair value of the liability component at initial recognition totaled $1,266 million before allocation of issuance costs, and was estimated by calculating the present value of cash flows using a discount rate of 2.70% and 3.28% (including 0.25% per annum nominal interest), respectively, on each tranche, which were determined to be consistent with the market rates at the time for similar instruments with no conversion rights. An amount of $242 million, net of allocated issuance costs of $1 million, was recorded in shareholders’ equity as the value of the conversion features of the instruments. Unamortized debt discount and issuance costs on the newly issued convertible debt totaled $221 million as at December 31, 2017. As at December 31, 2017, the Company stock price exceeded the conversion price of the new convertible bonds. This excess corresponds to 4.3 million shares or $95 million. Aggregate future maturities of total long-term debt (including current portion) at redemption value are as follows: December 31, 2018 118 2019 118 2020 118 2021 62 2022 753 Thereafter 753 Total 1,922 The difference between the total aggregated future maturities in the preceding table and the total carrying amount of long-term debt is due to unamortized debt discount and issuance costs on the dual tranche senior unsecured convertible bonds. Credit facilities The Company had unutilized committed medium-term credit facilities with core relationship banks totalling $580 million as of December 31, 2017. The Company also has two long-term amortizing credit facilities with the European Investment Bank as part of R&D funding programs. The first one, signed on September 27, 2010 as a €350 million multi-currency loan for R&D programs in Europe, was drawn mainly in U.S. dollars for an amount of $321 million and only partially in Euros for an amount of €100 million, of which $166 million remained outstanding as of December 31, 2017. The second one, signed on March 12, 2013, a €350 million multi-currency loan which also supports R&D programs, was drawn in U.S. dollars for $471 million, of which $235 million was outstanding as of December 31, 2017. In August 2017, the Company signed a new medium term credit facility with the European Investment Bank for a total of €500 million in relation to R&D and capital expenditure investments in the European Union for the years 2017 and 2018. The medium term line is available for drawings in Euro and in U.S. dollars until the first quarter of 2019 and has terms and conditions determined at drawdown. As of December 31, 2017, no amount was drawn as part of this new credit facility.

Post-Employment and Other Long-

Post-Employment and Other Long-Term Employees Benefits	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
Post-Employment and Other Long-Term Employees Benefits	15. POST-EMPLOYMENT AND OTHER LONG-TERM EMPLOYEES BENEFITS The Company and its subsidiaries have a number of defined benefit pension plans, mainly unfunded, and other long-term employees’ benefits covering employees in various countries. The defined benefit plans provide pension benefits based on years of service and employee compensation levels. The other long-term employees’ plans provide benefits due during the employees’ period of service after certain seniority levels. The Company uses a December 31 measurement date for its plans. Eligibility is generally determined in accordance with local statutory requirements. For Italian termination indemnity plan (“TFR”), generated before July 1, 2007, the Company continues to measure the vested benefits to which Italian employees are entitled as if they left the company immediately as of December 31, 2017, in compliance with U.S. GAAP guidance on determining vested benefit obligations for defined benefit pension plans. The changes in benefit obligation and plan assets were as follows: Pension Benefits Other Long-Term Benefits December 31, December 31, December 31, December 31, Change in benefit obligation: Benefit obligation at beginning of year 825 816 52 54 Service cost 27 27 3 3 Interest cost 23 25 2 2 Employee contributions 4 7 — — Benefits paid (16 ) (27 ) (2 ) (5 ) Effect of curtailment — (6 ) — (1 ) Effect of settlement (10 ) (10 ) — — Actuarial (gain) loss 25 36 3 — Foreign currency translation adjustment 58 (43 ) 7 (1 ) Benefit obligation at end of year 936 825 65 52 Change in plan assets: Plan assets at fair value at beginning of year 477 473 — — Actual return on plan assets 40 31 — — Employer contributions 27 27 — — Employee contributions 4 7 — — Benefits paid (7 ) (18 ) — — Effect of settlement (10 ) (10 ) — — Foreign currency translation adjustments 21 (33 ) — — Plan assets at fair value at end of year 552 477 — — Funded status (384 ) (348 ) (65 ) (52 ) Net amount recognized in the balance sheet consisted of the following: Pension Benefits Other Long-Term Benefits December 31, December 31, December 31, December 31, Non-current assets 1 — — — Current liabilities (9 ) (9 ) (4 ) (3 ) Long-term liabilities (376 ) (339 ) (61 ) (49 ) Net amount recognized (384 ) (348 ) (65 ) (52 ) The components of accumulated other comprehensive income (loss) before tax effects were as follows: Actuarial Prior service Total Other comprehensive loss as at December 31, 2015 137 3 140 Net amount generated/arising in current year 25 — 25 Amortization (14 ) (1 ) (15 ) Foreign currency translation adjustment (9 ) — (9 ) Other comprehensive loss as at December 31, 2016 139 2 141 Net amount generated/arising in current year 6 — 6 Amortization (10 ) — (10 ) Foreign currency translation adjustment 9 — 9 Other comprehensive loss as at December 31, 2017 144 2 146 In 2018, the Company expects to amortize $9 million of actuarial losses. The accumulated benefit obligations were as follows: Pension Benefits Other Long-Term Benefits December 31, December 31, December 31, December 31, Accumulated benefit obligations 828 762 53 41 For pension plans and other long-term benefits with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $853 million and $511 million, respectively, as of December 31, 2017 and $738 million and $443 million, respectively, as of December 31, 2016. For pension plans and other long-term benefits with benefit obligations in excess of plan assets, the benefit obligation and fair value of plan assets were $961 million and $511 million, respectively, as of December 31, 2017 and $811 million and $464 million, respectively, as of December 31, 2016. The components of the net periodic benefit cost included the following: Pension Benefits Other Long-term Benefits Year ended Year ended Year ended Year ended Year ended Year ended Service cost 27 27 28 3 3 5 Interest cost 23 25 25 2 2 2 Expected return on plan assets (21 ) (20 ) (22 ) — — — Amortization of actuarial net loss (gain) 9 8 7 3 — — Amortization of prior service cost — 1 1 — — — Effect of settlement 1 — 1 — — — Effect of curtailment — — — — (1 ) (1 ) Net periodic benefit cost 39 41 40 8 4 6 The weighted average assumptions used in the determination of the benefit obligation and the plan assets for the pension plans and the other long-term benefits were as follows: Assumptions 2017 2016 Discount rate 2.54 % 2.57 % Salary increase rate 2.37 % 2.74 % Expected long-term rate of return on funds for the pension expense of the following year 4.23 % 4.24 % The weighted average assumptions used in the determination of the net periodic benefit cost for the pension plans and the other long-term benefits were as follows: Assumptions 2017 2016 2015 Discount rate 2.57 % 3.19 % 3.03 % Salary increase rate 2.74 % 3.07 % 2.65 % Expected long-term rate of return on funds for the pension expense of the year 4.24 % 4.44 % 4.76 % The discount rate was determined by reference to market yields on high quality long-term corporate bonds applicable to the respective country of each plan, with terms consistent with the term of the benefit obligations concerned. In developing the expected long-term rate of return on assets, the Company modelled the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios. The Company’s pension plan asset allocation at December 31, 2017 and at December 31, 2016 is as follows: Percentage of Plan Assets at December Asset Category 2017 2016 Cash and cash equivalents 3 % 2 % Equity securities 30 % 29 % Government debt securities 3 % 3 % Corporate debt securities 26 % 26 % Investments in funds (a) 17 % 18 % Real estate 2 % 2 % Other (mainly insurance assets — contracts and reserves) 19 % 20 % Total 100 % 100 % (a) Investment in funds are composed approximately of one half in commingled funds mainly invested in corporate bonds (55%) and treasury bonds and notes (45%) and for the other half in multi-strategy funds invested in broadly diversified portfolios of corporate and government bonds, equity and derivative instruments. As of December 31, 2017, the Company’s plan asset allocation is in line with the target fixed for each plan. The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2017 is as follows: Total Quoted Prices in Significant Other Significant Cash and cash equivalents 14 14 — — Equity securities 167 8 159 — Government debt securities 18 17 1 — Corporate debt securities 141 5 136 — Investment funds 93 2 91 — Real estate 12 — 12 — Other (mainly insurance assets — contracts and reserves) 107 — — 107 TOTAL 552 46 399 107 The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2016 is as follows: Total Quoted Prices in Significant Other Significant Cash and cash equivalents 11 11 — — Equity securities 137 6 131 — Government debt securities 13 12 1 — Corporate debt securities 125 4 121 — Investment funds 84 6 78 — Real estate 12 — 11 1 Other (mainly insurance assets — contracts and reserves) 95 — — 95 TOTAL 477 39 342 96 The fair value of insurance contracts is based on the value of the assets held by the provider. The approach is consistent with prior years. For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2017 and December 31, 2017 is presented as follows: Fair Value Measurements January 1, 2017 96 Contributions (employer and employee) 12 Actual return on plan assets (2 ) Net benefit payments (b) 4 Settlements (8 ) Foreign currency translation adjustment 5 December 31, 2017 107 (b) Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees. For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2016 and December 31, 2016 is presented as follows: Fair Value Measurements January 1, 2016 102 Contributions (employer and employee) 16 Actual return on plan assets (3 ) Net benefit payments (b) (6 ) Settlements (10 ) Foreign currency translation adjustment (3 ) December 31, 2016 96 (b) Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees. The Company’s investment strategy for its pension plans is to optimize the long-term investment return on plan assets in relation to the liability structure to maintain an acceptable level of risk while minimizing the cost of providing pension benefits and maintaining adequate funding levels in accordance with applicable rules in each jurisdiction. The Company’s practice is to periodically conduct a review in each subsidiary of its asset allocation strategy, in such a way that the asset allocation is in line with the targeted asset allocation with reasonable boundaries. The Company’s asset portfolios are managed in such a way as to achieve adapted diversity and in certain jurisdictions they are entirely managed by the multi-employer funds. The Company does not manage any assets internally. After considering the funded status of the Company’s defined benefit plans, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its pension plans in any given year in excess of required amounts. The Company’s contributions to plan assets were $27 million in both 2017 and 2016 and the Company expects to contribute cash of $26 million in 2018. The Company’s estimated future benefit payments as of December 31, 2017 are as follows: Years Pension Other Long-term 2018 32 4 2019 31 5 2020 26 8 2021 36 3 2022 35 4 From 2023 to 2026 264 30 The Company has certain defined contribution plans, which accrue benefits for employees on a pro-rata basis during their employment period based on their individual salaries. The Company accrued benefits related to defined contribution pension plans of $19 million as of December 31, 2017 and $16 million as of December 31, 2016. The annual cost of these plans amounted to approximately $74 million in 2017 and approximately $70 million in both 2016 and 2015.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Shareholders' Equity	16. SHAREHOLDERS’ EQUITY 16.1 Outstanding shares The authorized share capital of the Company is Euro 1,810 million consisting of 1,200,000,000 common shares and 540,000,000 preference shares, each with a nominal value of €1.04. As at December 31, 2017 the number of shares of common stock issued was 911,110,420 shares (911,030,420 at December 31, 2016). As of December 31, 2017 the number of shares of common stock outstanding was 896,590,286 (883,410,506 at December 31, 2016). 16.2 Preference shares The 540,000,000 preference shares, when issued, will entitle a holder to full voting rights and to a preferential right to dividends and distributions upon liquidation. On January 22, 2007, an option agreement was concluded between the Company and Stichting Continuïteit ST. This option agreement provides for the issuance of 540,000,000 preference shares. The Foundation can acquire preference shares upon payment of at least 25% of the par value of the preference shares to be issued in the event of actions which the board of the Foundation determines would be contrary to our interests, our shareholders and our other stakeholders and which in the event of a creeping acquisition or offer for our common shares are not supported by our Managing Board and Supervisory Board. The preference shares may remain outstanding for no longer than two years. In October 2016, the Company extended for another 10-year period the existing option agreement with Stichting Continuiteït ST. There were no preference shares issued as of December 31, 2017 and December 31, 2016 respectively. 16.3 Treasury stock Following the authorization by the Supervisory Board, announced on April 2, 2008, the Company acquired 29.5 million shares of its common stock in 2008, reflected at cost, as a reduction of the parent company stockholders’ equity. Pursuant to a resolution passed at the shareholders’ meeting held on June 13, 2014, the Company repurchased 20.0 million shares of its common stock in 2014 under the buy-back program, reflected at cost, as a reduction of the parent company stockholders’ equity. Additionally, pursuant to a resolution passed at the shareholders’ meeting held on June 20, 2017 and announced on June 22, 2017, the Company repurchased 18.6 million shares of its common stock for a total of $297 million under the share buy-back program, reflected at cost, as a reduction of the parent company stockholders’ equity. In the second half of 2017, the Company delivered 26.8 million shares from its treasury shares following the conversion of the Tranche A and Tranche B of the convertible bonds issued on July 3, 2014. The treasury shares have been designated for allocation under the Company’s share based remuneration programs of unvested shares. As of December 31, 2017, 40,198,271 of these treasury shares were transferred to employees under the Company’s share based remuneration programs, of which 4,897,965 in the year ended December 31, 2017. As of December 31, 2017, the Company owned a number of treasury shares equivalent to 14,520,134 compared to 27,619,914 as of December 31, 2016. 16.4 Unvested share awards for the Supervisory Board On an annual basis and until the year 2012, the Compensation Committee (on behalf of the Supervisory Board and with its approval) used to grant stock-based awards (the options to acquire common shares in the share capital of the Company) to the members and professionals of the Supervisory Board (“The Supervisory Board Plan”). The awards were granted at the nominal value of the share of €1.04 (exercise price of the option). The options granted under the Supervisory Board Plan vest and become exercisable immediately, while the shares resulting from these awards vest and therefore become available for trade evenly over three years (one third every year), with no market, performance or service conditions. The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: Year of grant Options granted Options waived 2005 66,000 (15,000 ) 2006 66,000 (15,000 ) 2007 165,000 (22,500 ) 2008 165,000 (22,500 ) 2009 165,000 (7,500 ) 2010 172,500 (7,500 ) 2011 172,500 (30,000 ) 2012 180,000 (22,500 ) 2013 No options granted 2014 No options granted 2015 No options granted 2016 No options granted 2017 No options granted A summary of the options’ activity by plan for the years ended December 31, 2017 and December 31, 2016 is presented below: Year of grant Outstanding Exercised Expired / Outstanding Exercised Expired / Outstanding 2006 3,000 (3,000 ) — — — — — 2007 19,500 (12,000 ) — 7,500 (7,500 ) — — 2008 39,000 (15,000 ) — 24,000 (7,500 ) — 16,500 2009 45,000 (10,000 ) — 35,000 (12,500 ) — 22,500 2010 45,000 — — 45,000 (15,000 ) — 30,000 2011 82,500 (15,000 ) — 67,500 (15,000 ) — 52,500 2012 95,000 (7,500 ) — 87,500 (22,500 ) — 65,000 The total intrinsic value of options exercised during the year 2017 amounted to $1 million compared to less than $1 million for the year 2016 and $1 million for the year 2015. The total intrinsic value of options outstanding as of December 31, 2017 amounted to $4 million. At the Company’s Annual General Meeting of Shareholders held on 21 June 2013, it was resolved to abolish and terminate the stock-based compensation for the Supervisory Board members and professionals. 16.5 Unvested share awards for the employees On an annual basis, the Compensation Committee (on behalf of the Supervisory Board and with its approval) grants stock-based awards to the senior executives along with selected employees (the “Employee Plan”). The awards are granted for services under the Employee Plan. There are two types of unvested shares: (1) shares granted to employees, which are subject only to service conditions and vest over the requisite service period, and (2) shares granted to senior executives, whose vesting is subject to performance conditions. For the plans 2013, 2014, 2015 and 2017, the performance conditions consisted of two external targets (sales evolution and operating income compared to a basket of competitors) weighting for two third of the total number of awards granted and of one internal target (cash flow compared to budget for the plans 2013 and 2014 and return on net assets compared to budget for the plans 2015 and 2017), weighting for one third of the total number of awards granted. For the plan 2016, the performance conditions consisted of two external targets (sales evolution and operating income compared to a basket of competitors) weighting for 80% of the total number of awards granted and of two internal targets (days of sales outstanding compared to the budget and return on net assets compared to budget), weighting for 20% of the total number of awards granted. All the awards vest over a three year service period (32% as of the first anniversary of the grant, 32% as of the second anniversary of the grant and 36% as of the third anniversary of the grant). In addition, in 2013, 2014, 2015 and 2016 there was a Special Bonus granted to the Company’s CEO. The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: Date of grant Plan name Number of Number of Number of shares July 22, 2013 2013 CEO Special Bonus 63,848 — — July 22, 2014 2014 CEO Special Bonus 34,483 — — July 22, 2014 2014 Employee Plan 6,458,435 — (1,939,222 ) December 18, 2014 2014 Employee Plan 500,775 — (31,332 ) March 24, 2015 2015 CEO Special Bonus 53,369 — — July 27, 2015 2015 Employee Plan 6,591,200 — (1,961,886 ) December 15, 2015 2015 Employee Plan 370,920 — (29,078 ) April 26, 2016 2016 CEO Special Bonus 69,165 — — July 26, 2016 2016 Employee Plan 6,621,100 — (1,628,376 ) December 19, 2016 2016 Employee Plan 376,800 — (53,900 ) July 25, 2017 2017 Employee Plan 7,634,475 — ( *) December 22, 2017 2017 Employee Plan 347,160 — ( *) (*) As at December 31, 2017, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. A summary of the unvested share activity by plan for the year ended December 31, 2017 is presented below: Unvested Shares Unvested as at Granted Forfeited / Cancelled on Vested Unvested as at 2013 CEO Special Bonus 7,095 — — — (7,095 ) — 2014 CEO Special Bonus 11,495 — — — (11,495 ) — 2014 Employee Plan 1,611,453 — (7,253 ) — (1,604,200 ) — 2015 CEO Special Bonus 35,579 — — — (17,790 ) 17,789 2015 Employee Plan 3,170,739 — (24,694 ) — (1,515,261 ) 1,630,784 2016 CEO Special Bonus — 69,165 — — (23,055 ) 46,110 2016 Employee Plan 6,974,420 — (62,179 ) (1,682,276 ) (1,717,119 ) 3,512,846 2017 Employee Plan — 7,981,635 (32,175 ) — (1,950 ) 7,947,510 Total 11,810,781 8,050,800 (126,301 ) (1,682,276 ) (4,897,965 ) 13,155,039 The grant date fair value of unvested shares granted to the CEO under the 2013 CEO Special Bonus Plan was $9.35. On the 2013 CEO Special Bonus Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grant. The grant date fair value of unvested shares granted to the CEO under the 2014 CEO Special Bonus Plan was $9.35. On the 2014 CEO Special Bonus Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grant. The grant date weighted average fair value of unvested shares granted to employees under the 2014 Employee Plan was $9.23. On March 24, 2015, the Compensation Committee approved the statement that with respect to the shares subject to performance conditions, one performance condition was fully met. Consequently, the compensation expense recorded on the 2014 Employee Plan reflects the statement that — for the portion of shares subject to performance conditions — one third of the awards granted will fully vest, as far as the service condition is met. The grant date fair value of unvested shares granted to the CEO under the 2015 CEO Special Bonus Plan was $9.78. On the 2015 CEO Special Bonus Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grant. The grant date fair value of unvested shares granted to employees under the 2015 Employee Plan was $7.62. On April 26, 2016, the Compensation Committee approved the statement that with respect to the shares subject to performance conditions, one performance condition was fully met. Consequently, the compensation expense recorded on the 2015 Employee Plan reflects the statement that — for the portion of shares subject to performance conditions — one third of the awards granted will fully vest, as far as the service condition is met. The grant date fair value of unvested shares granted to the CEO under the 2016 CEO Special Bonus Plan was $5.36. On the 2016 CEO Special Bonus Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grant. The grant date weighted average fair value of unvested shares granted to employees under the 2016 Employee Plan was $6.37. On March 31, 2017, the Compensation Committee approved the statement that with respect to the shares subject to performance conditions, two performance conditions were fully met. Consequently, the compensation expense recorded on the 2016 Employee Plan reflects the statement that — for the portion of shares subject to performance conditions — 45% of the awards granted, representing the weight of the two performance conditions met, will fully vest, as far as the service condition is met. The grant date weighted average fair value of unvested shares granted to employees under the 2017 Employee Plan was $16.52. Moreover, for the portion of the shares subject to performance conditions (3,478,585 shares) the Company estimates the number of awards expected to vest by assessing the probability of achieving the performance conditions. At December 31, 2017, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. However, the Company has estimated that 100% of the awards subject to performance conditions are expected to vest. Consequently, the compensation expense recorded for the 2017 Employee Plan reflects the vesting of 100% of the awards granted with performance conditions, subject to the service condition being met. The assumption of the expected number of awards to be vested upon achievement of the performance conditions is subject to changes based on the final measurement of the conditions, which is expected to occur in the first half of 2018. The following table illustrates the classification of pre-payroll tax and social contribution stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2017, December 31, 2016 and December 31, 2015: December 31, December 31, December 31, Cost of sales 12 7 7 Selling, general and administrative 31 17 17 Research and development 18 14 14 Total pre-payroll tax and social contribution compensation 61 38 38 The fair value of the shares vested in 2017 was $38 million compared to $42 million for 2016 and $35 million for 2015. Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory was $3 million as of December 31, 2017, compared to $2 million as of December 31, 2016 and 2015. As of December 31, 2017 there was $102 million of total unrecognized compensation cost related to the grant of unvested shares, which is expected to be recognized over a weighted average period of approximately 10 months. The total deferred income tax benefit recognized in the consolidated statements of income related to unvested share-based compensation expense amounted to $3 million, $2 million and $2 million for the years ended December 31, 2017, 2016 and 2015, respectively. 16.6 Accumulated other comprehensive income (loss) attributable to parent company stockholders The table below details the changes in AOCI attributable to the company’s stockholders by component, net of tax, for the years ended December 31, 2017, 2016 and 2015: Gains (Losses) Gains (Losses) Defined Benefit Foreign Currency Total December 31, 2014 (76 ) 2 (170 ) 813 569 Cumulative tax impact — — 44 — 44 December 31, 2014, net of tax (76 ) 2 (126 ) 813 613 OCI before reclassifications (117 ) — (2 ) (202 ) (321 ) Amounts reclassified from AOCI 170 — 12 (10 ) 172 OCI for the year ended December 31, 2015 53 — 10 (212 ) (149 ) Cumulative tax impact — — (4 ) — (4 ) OCI for the year ended December 31, 2015, net of tax 53 — 6 (212 ) (153 ) December 31, 2015 (23 ) 2 (160 ) 601 420 Cumulative tax impact — — 40 — 40 December 31, 2015, net of tax (23 ) 2 (120 ) 601 460 OCI before reclassifications (33 ) — (25 ) (57 ) (115 ) Amounts reclassified from AOCI 9 — 15 — 24 OCI for the year ended December 31, 2016 (24 ) — (10 ) (57 ) (91 ) Cumulative tax impact — — 2 — 2 OCI for the year ended December 31, 2016, net of tax (24 ) — (8 ) (57 ) (89 ) December 31, 2016 (47 ) 2 (170 ) 544 329 Cumulative tax impact — — 42 — 42 December 31, 2016, net of tax (47 ) 2 (128 ) 544 371 OCI before reclassifications 122 (2 ) (6 ) 224 338 Amounts reclassified from AOCI (30 ) — 10 — (20 ) OCI for the year ended December 31, 2017 92 (2 ) 4 224 318 Cumulative tax impact — — (1 ) — (1 ) OCI for the year ended December 31, 2017, net of tax 92 (2 ) 3 224 317 December 31, 2017 45 — (166 ) 768 647 Cumulative tax impact — — 41 — 41 December 31, 2017, net of tax 45 — (125 ) 768 688 Items reclassified out of Accumulated Other Comprehensive Income for the years ended December 31, 2017, 2016 and 2015 are listed in the table below: Details about AOCI components Amounts Amounts Amounts Affected line item in the statement where Gains (Losses) on Cash Flow Hedges Foreign exchange derivative contracts 16 (7 ) (105 ) Cost of sales Foreign exchange derivative contracts 3 — (14 ) Selling, general and administrative Foreign exchange derivative contracts 11 (2 ) (51 ) Research and development — — — Income tax benefit (expense) 30 (9 ) (170 ) Net of tax Defined Benefit Pension Plan Items Amortization of actuarial gains (losses) (1 ) (1 ) — Cost of sales Amortization of actuarial gains (losses) (4 ) (8 ) (5 ) Selling, general and administrative Amortization of actuarial gains (losses) (5 ) (6 ) (6 ) Research and development Amortization of prior service cost — — (1 ) Research and development 2 4 4 Income tax benefit (expense) (8 ) (11 ) (8 ) Net of tax Foreign currency translation adjustment Realized gain on disposal of investments — — 10 Income (loss) on equity-method investments — — — Income tax benefit (expense) — — 10 Net of tax Total reclassifications for the year 22 (20 ) (168 ) Attributable to noncontrolling interest — — — Attributable to the Company’s stockholders 22 (20 ) (168 ) 16.7 Dividends The Annual General Meeting of Shareholders held on June 20, 2017 authorized the distribution of a cash dividend of $0.24 per outstanding share of the Company’s common stock, to be distributed in quarterly installments of $0.06 in each of the second, third and fourth quarters of 2017 and first quarter of 2018. The amount of $53 million corresponding to the first installment, $53 million corresponding to the second installment and $47 million corresponding to the third installment were paid as of December 31, 2017. The remaining portion of the third installment amounting to $7 million and the last installment of $53 million are presented in the line “Dividends payable to stockholders” in the consolidated balance sheet as of December 31, 2017. The Annual General Meeting of Shareholders held on May 25, 2016 authorized the distribution of a cash dividend of $0.24 per outstanding share of the Company’s common stock, to be distributed in quarterly installments of $0.06 in each of the second, third and fourth quarters of 2016 and first quarter of 2017. The amount of $53 million corresponding to the first installment, $53 million corresponding to the second installment and $47 million corresponding to the third installment were paid as of December 31, 2016. The remaining portion of the third installment amounting to $6 million and the fourth installment of $53 million were paid in the first half of 2017. The Annual General Meeting of Shareholders held on May 27, 2015 authorized the distribution of a cash dividend of $0.40 per outstanding share of the Company’s common stock, to be distributed in quarterly installments of $0.10 in each of the second, third and fourth quarters of 2015 and first quarter of 2016. The amount of $88 million corresponding to the first installment, $88 million corresponding to the second installment and $78 million corresponding to the third installment were paid during 2015. The remaining portion of $9 million related to the third installment and the fourth installment of $88 million were paid in the first half of 2016. The Supervisory Board held on December 4, 2014 authorized the distribution of a semi-annual cash dividend per common share of $0.10 in the fourth quarter of 2014 and $0.10 in the first quarter of 2015, to be distributed in December 2014 and March 2015, respectively. The first installment of $87 million was paid in December 2014 and January 2015. The second installment of $87 million was paid in the first half of 2015.

Earnings per Share

Earnings per Share	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Earnings per Share	17. EARNINGS PER SHARE For the years ended December 31, 2017, 2016 and 2015, earnings per share (“EPS”) was calculated as follows: Year ended Year ended Year ended Basic EPS Net income (loss) attributable to parent company 802 165 104 Weighted average shares outstanding 884,707,764 881,246,870 876,510,959 Basic EPS 0.91 0.19 0.12 Diluted EPS Net income (loss) attributable to parent company adjusted 802 165 104 Weighted average shares outstanding 884,707,764 881,246,870 876,510,959 Dilutive effect of stock awards 7,459,507 5,003,573 4,043,813 Dilutive effect of convertible debt 13,918,602 — — Number of shares used in calculating diluted EPS 906,085,873 886,250,443 880,554,772 Diluted EPS 0.89 0.19 0.12 The convertible bonds issued on July 3, 2014, as detailed in Note 14, had no impact on the diluted EPS computation as of December 31, 2016 and December 31, 2015 since the contingent conversion features were out-of-the-money.

Other Income and Expenses, Net

Other Income and Expenses, Net	12 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
Other Income and Expenses, Net	18. OTHER INCOME AND EXPENSES, NET Other income and expenses, net consisted of the following: Year ended December 31, Year ended December 31, Year ended December 31, Research and development funding 65 94 144 Phase-out and start-up costs (8 ) (2 ) (5 ) Exchange gain, net 4 5 2 Patent costs, net of reversal of unused provisions (9 ) (5 ) 3 Gain on sale of businesses and non-current assets 4 2 18 Other, net (1 ) 5 2 Total 55 99 164 The Company receives significant public funding from governmental agencies in several jurisdictions. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions have been met. R&D funding received in the year ended December 31, 2017 from the Nano2017 program with the French government is subject to a financial return in the year 2024 and depends on the future cumulative sales of a certain product group from 2018 to 2023. As such, the criteria for granting income recognition were not met and an accrual amounting to $33 million was posted as of December 31, 2017. No such accrual was posted for the year ended December 31, 2016. Phase-out costs are costs incurred during the closing stage of a Company’s manufacturing facility. They are treated in the same manner as start-up costs. Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six months after the fabrication line’s quality certification. Exchange gains and losses, net represent the portion of exchange rate changes on transactions denominated in currencies other than an entity’s functional currency and the changes in fair value of trading derivative instruments which are not designated as hedge and which have a cash flow effect related to operating transactions, as described in Note 24. Patent costs include legal and attorney fees and payment for claims, patent pre-litigation consultancy and legal fees. They are reported net of settlements, if any, which primarily include reimbursements of prior patent litigation costs. In 2017, gain on sale of businesses and non-current assets is related to the sale of assets. In 2016, it was mostly related to the sale of a building in France, while in 2015 it was related to the sale of non-strategic assets.

Impairment, Restructuring Charg

Impairment, Restructuring Charges and Other Related Closure Costs	12 Months Ended
	Dec. 31, 2017
Restructuring and Related Activities [Abstract]
Impairment, Restructuring Charges and Other Related Closure Costs	19. IMPAIRMENT, RESTRUCTURING CHARGES AND OTHER RELATED CLOSURE COSTS Impairment, restructuring charges and other related closure costs incurred in 2017, 2016 and 2015 are summarized as follows: Year ended December 31, 2017 Impairment Restructuring Other related Total impairment, Set-top Box restructuring plan — (34 ) — (34 ) EPS restructuring plan — 5 — 5 $600-650 million net opex plan — — (3 ) (3 ) Other restructuring initiatives — (13 ) — (13 ) Total — (42 ) (3 ) (45 ) Year ended December 31, 2016 Impairment Restructuring Other related Total impairment, Set-top Box restructuring plan — (74 ) (9 ) (83 ) EPS restructuring plan — (1 ) — (1 ) $600-650 million net opex plan — — (1 ) (1 ) Long-lived asset impairment charge (8 ) — — (8 ) Total (8 ) (75 ) (10 ) (93 ) Year ended December 31, 2015 Impairment Restructuring Other related Total impairment, $600-650 million net opex plan — — (2 ) (2 ) Manufacturing consolidation — (1 ) (10 ) (11 ) EPS restructuring plan — (36 ) — (36 ) Long-lived asset impairment charge (16 ) — — (16 ) Total (16 ) (37 ) (12 ) (65 ) Impairment charges In 2017, the Company did not record any impairment charges. In 2016, the Company recorded impairment charges of $8 million, primarily consisting of $3 million relating to the reclassification of certain property, plant and equipment as Assets Held for Sale and $4 million for other acquired intangible assets for which there was no alternative future use, as detailed in Notes 10 and 9, respectively. In 2015, the Company recorded impairment charges of $16 million, of which $13 million following the annual impairment test performed in the third quarter and $3 million for other acquired intangible assets for which there was no alternative future use. Restructuring charges and other related closure costs In 2017, the Company announced a restructuring plan affecting approximately 300 employees through voluntary leaves in one of its back-end operations. The Company recorded in 2017 $13 million of restructuring charges for this plan, corresponding to employee voluntary termination benefits. The Company was engaged in 2016 in one major restructuring plan, the Set-top Box plan. In 2016, the Company announced its decision to cease the development of new platforms and standard products for set-top-box and home gateway products. This decision implied a global workforce review that may affect approximately 1,400 employees worldwide, which includes about 430 in France through a voluntary departure plan, about 670 in Asia and about 120 in the United States of America. The Company recorded $34 million of restructuring charges for this plan in 2017, primarily related to employee termination benefits on a voluntary leave plan in France. In 2014, the Company committed to a plan affecting around 450 employees worldwide and targeting savings in the former Embedded Processing Solutions business (the “EPS restructuring plan”). The Company reported in 2017 a $5 million income on this plan for the reversal of unused provisions. In 2013, the Company committed to restructuring actions to reduce operating expenses, net of R&D grants to the level of $600 to $650 million on a quarterly basis (the “$600-650 million net opex plan”). The Company recorded in 2017 a $3 million charge corresponding to a change in estimates on a lease termination contract. In July 2013, the Company announced that it would wind down certain 6-inch manufacturing lines, close its back-end plant in Longgang and consolidate back-end activities in China to Shenzhen (the “Manufacturing consolidation plan”). There was no charge recorded by the Company for this plan in 2017. In 2016, the Company incurred restructuring charges and other related closure costs for $85 million corresponding to: • $1 million for the $600-650 million net opex plan corresponding to a change in estimates on a contract termination provision; • $1 million for the EPS restructuring plan; • $83 million for the Set-top Box restructuring plan, of which $9 million related to contracts that will continue with no future economic benefits to the Company and $74 million related to employee ongoing termination benefits, primarily for employee termination benefits in France, in the United States and Asia. In 2015, the Company incurred restructuring charges and other related closure costs for $49 million corresponding to: • $2 million for the $600-650 million net opex plan corresponding to a change in estimates on a contract termination provision; • $11 million for the Manufacturing consolidation plan corresponding to $1 million for employee termination benefits and $10 million corresponding to a grant clawback pursuant to the closure of operations in Longgang, China; • $36 million for the EPS restructuring plan, net of adjustments for unused provision, corresponding primarily to employee voluntary termination benefits and including termination fees in connection with the exit from the IBM technology alliance and contract termination costs. Changes to the restructuring provisions recorded on the consolidated balance sheets from December 31, 2015 to December 31, 2017 are summarized as follows: Set-top Box $600-650 Manufacturing EPS Other Total Provision as at December 31, 2015 — 6 1 18 9 34 Charges incurred in 2016 83 1 — 1 — 85 Amounts paid (46 ) (1 ) (1 ) (10 ) (1 ) (59 ) Liability settlement — — — — (3 ) (3 ) Currency translation effect — (1 ) — (1 ) (1 ) (3 ) Provision as at December 31, 2016 37 5 — 8 4 54 Charges incurred in 2017 36 3 — — 13 52 Adjustment for unused provisions (2 ) — — (5 ) — (7 ) Amounts paid (36 ) (1 ) — — (14 ) (51 ) Currency translation effect 4 — — — — 4 Provision as at December 31, 2017 39 7 — 3 3 52 An amount of $46 million is expected to be paid within twelve months, as detailed in Note 13. The Set-top Box restructuring plan is expected to result in a total charge of $170 million. The cost incurred as of December 31, 2017 was $117 million of which $34 million was recorded during the year ended December 31, 2017. The plan was substantially completed in 2017 in all locations except France. The $600-650 million net opex plan resulted in a total charge of $118 million. The plan was substantially completed in 2014. The Manufacturing consolidation plan resulted in a total charge of $31 million, excluding impairments. The plan was completed in 2015. The EPS restructuring plan resulted in a total charge of $62 million. The plan was substantially completed in 2015. In 2017, total amounts paid for restructuring and related closure costs amounted to $51 million. The total actual costs that the Company will incur may differ from these estimates based on the timing required to complete the restructuring plan, the number of people involved, the final agreed termination benefits and the costs associated with the transfer of equipment, products and processes.

Interest Expense, Net

Interest Expense, Net	12 Months Ended
	Dec. 31, 2017
Banking and Thrift, Interest [Abstract]
Interest Expense, Net	20. INTEREST EXPENSE, NET Interest expense, net consisted of the following: Year ended December 31, Year ended December 31, Year ended December 31, Income 30 20 18 Expense (52 ) (40 ) (40 ) Total (22 ) (20 ) (22 ) Interest income is related to the cash and cash equivalents held by the Company. Interest expense recorded in 2017, 2016 and 2015 included respectively a charge of $37 million, $25 million and $24 million on the senior unsecured convertible bonds issued in July 2017 and July 2014, of which respectively $33 million, $21 million and $20 million was a non-cash interest expense resulting from the accretion of the discount on the liability component. Net interest includes also charges related to the banking fees and the sale of trade and other receivables. No borrowing cost was capitalized in 2017, 2016 and 2015. Interest income on government Bonds and floating rate notes classified as available-for-sale marketable securities amounted to $6 million for the year ended December 31, 2017, $6 million for the year ended December 31, 2016 and $6 million for the year ended December 31, 2015.

Income Tax

Income Tax	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax	21. INCOME TAX Income (loss) before income tax is comprised of the following: Year ended December 31, Year ended December 31, Year ended December 31, Income (loss) recorded in The Netherlands (17 ) (10 ) (18 ) Income (loss) from foreign operations 970 211 107 Income (loss) before income tax benefit (expense) 953 201 89 STMicroelectronics N.V. and its subsidiaries are individually liable for income taxes in their jurisdictions. Tax losses can only offset profits generated by the taxable entity incurring such loss. Income tax benefit (expense) is comprised of the following: Year ended December 31, Year ended December 31, Year ended December 31, The Netherlands Taxes — current (1 ) (2 ) 5 Foreign taxes — current (101 ) (69 ) (43 ) Total current taxes (102 ) (71 ) (38 ) The Netherlands Taxes — deferred — — — Foreign taxes — deferred (41 ) 40 59 Total deferred taxes (41 ) 40 59 Income tax benefit (expense) (143 ) (31 ) 21 Effective tax rate 15 % 15 % -24 % The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2017, 2016 and 2015, and the effective income tax rate are the following: Year ended December 31, Year ended December 31, Year ended December 31, Income tax benefit (expense) computed at statutory rate (238 ) (51 ) (23 ) Non-deductible and non-taxable permanent differences, net 17 5 (18 ) Income (loss) on equity-method investments — 2 — Valuation allowance adjustments 92 10 1 Effect on deferred taxes of changes in enacted tax rates (70 ) (9 ) (15 ) Current year credits 40 34 44 Other tax and credits (36 ) (25 ) 2 Benefits from tax holidays 114 49 42 Net impact of changes to uncertain tax positions (43 ) (22 ) 8 Earnings of subsidiaries taxed at different rates (19 ) (24 ) (20 ) Income tax benefit (expense) (143 ) (31 ) 21 The tax holidays represent a tax exemption period aimed to attract foreign technological investment in certain tax jurisdictions. The effect of the tax benefits, from tax holidays for countries which are profitable, on basic earnings per share was $0.13, $0.05 and $0.05 for the years ended December 31, 2017, 2016, and 2015, respectively. These agreements are present in various countries and include programs that reduce up to and including 100% of taxes in years affected by the agreements. The Company’s tax holidays expire at various dates through the year ending December 31, 2022. In certain countries, tax holidays can be renewed depending on the Company still meeting certain conditions at the date of expiration of the current tax holidays. Deferred tax assets and liabilities consisted of the following: December 31, December 31, Tax loss carryforwards and investment credits 740 804 Less unrecognized tax benefit (235 ) (195 ) Tax loss carryforwards net of unrecognized tax benefit 505 609 Inventory valuation 35 29 Impairment and restructuring charges 16 20 Fixed asset depreciation in arrears 32 34 Increased depreciation incentives 118 — Capitalized development costs 101 91 Receivables for government funding 6 7 Tax credits granted on past capital investments 1,160 1,165 Pension service costs 65 68 Stock awards 5 — Commercial accruals 11 19 Other temporary differences 99 92 Total deferred tax assets 2,153 2,134 Valuation allowances (1,502 ) (1,577 ) Deferred tax assets, net 651 557 Accelerated fixed asset depreciation (13 ) (10 ) Acquired intangible assets (10 ) (8 ) Advances of government funding (9 ) (16 ) Other temporary differences (6 ) — Deferred tax liabilities (38 ) (34 ) Net deferred income tax asset 613 523 For a particular tax-paying component of the Company and within a particular tax jurisdiction, all current deferred tax liabilities and assets are offset and presented as a single amount, similarly to non-current deferred tax liabilities and assets. The Company does not offset deferred tax liabilities and assets attributable to different tax-paying components or to different tax jurisdictions. The net deferred tax assets are recorded in legal entities which have been historically profitable and are expected to be profitable in the next coming years. As of December 31, 2017, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2018, as follows: Year 2018 4 2019 78 2020 14 2021 3 2022 7 Thereafter 634 Total 740 The “Tax credits granted on past capital investments” mainly related to a 2003 agreement granting the Company certain tax credits for capital investments purchased through the year ending December 31, 2006. Any unused tax credits granted under the agreement will be impacted by yearly by a legal inflationary index (currently -0.13% per The amounts of deferred tax benefit (expense) recorded as a component of other comprehensive income (loss) was $(1) million and $(1) million in 2017 and 2016, respectively. They were related primarily to the tax effects of the recognized unfunded status on defined benefits plan. The cumulative amount of distributable earnings related to the Company’s investments in foreign subsidiaries and corporate joint ventures was $1,893 million and $1,046 million as at December 31, 2017 and December 31, 2016, respectively. Due to the Company’s legal and tax structure, with the parent company established in the Netherlands, there was no significant tax impact from the distribution of earnings from investments in foreign subsidiaries and corporate joint ventures. This is because there is no tax impact on dividends paid up to a Dutch holding company. A reconciliation of 2017, 2016 and 2015 beginning and ending amounts of unrecognized tax benefits is as follows: December 31, December 31, December 31, Balance at beginning of year 238 226 313 Additions based on tax positions related to the current year 43 34 38 Additions for tax positions of prior years 13 1 — Reduction for tax positions of prior years (9 ) (13 ) (48 ) Settlements (2 ) — (48 ) Prepayment (4 ) — (3 ) Reductions due to lapse of statute of limitations — (4 ) (1 ) Foreign currency translation 31 (6 ) (25 ) Balance at end of year 310 238 226 At December 31, 2017 and 2016, $235 million and $195 million, respectively, of unrecognized tax benefits were classified as a reduction of deferred tax assets. It is reasonably possible that certain of the uncertain tax positions disclosed in the table above could increase within the next 12 months due to ongoing tax audits. The Company is not able to make an estimate of the range of the reasonably possible change. Additionally, the Company elected to classify accrued interest and penalties related to uncertain tax positions as components of income tax expense in the consolidated statements of income, they were less than $1 million in 2017, $1 million in 2016, $1 million in 2015, $27 million in 2014 and not material in the previous years. Accrued interest and penalties amounted to $10 million at December 31, 2017 and $9 million at December 31, 2016. The tax years that remain open for review in the Company’s major tax jurisdictions, including France, Italy, United States and India, are from 1997 to 2017.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments	22. COMMITMENTS The Company’s commitments as of December 31, 2017 were as follows: In millions of U.S. dollars Total 2018 2019 2020 2021 2022 Thereafter Operating leases 227 55 40 32 21 13 66 Purchase obligations 1,423 946 232 129 116 — — of which: Equipment purchase 774 684 90 — — — — Foundry purchase 557 198 123 120 116 — — Software, design, technologies and licenses 92 64 19 9 — — — Other obligations 324 161 98 41 15 6 3 Total 1,974 1,162 370 202 152 19 69 Operating leases are mainly related to building and equipment leases. The amount disclosed is composed of minimum payments for future leases from 2018 to 2022 and thereafter. The Company leases land, buildings, plants and equipment under operating leases that expire at various dates under non-cancellable lease agreements. Operating lease expense was $67 million for the year ended December 31, 2017 and $56 million for the years ended December 31, 2016 and 2015. Purchase obligations are primarily comprised of purchase commitments for equipment, for outsourced foundry wafers and for software licenses. Other obligations primarily relate to firm contractual commitments with respect to partnership and cooperation agreements and other service agreements.

Contingencies, Claims and Legal

Contingencies, Claims and Legal Proceedings	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies, Claims and Legal Proceedings	23. CONTINGENCIES, CLAIMS AND LEGAL PROCEEDINGS The Company is subject to possible loss contingencies arising in the ordinary course of business. These include but are not limited to: warranty cost on the products of the Company, breach of contract claims, claims for unauthorized use of third-party intellectual property, tax claims beyond assessed uncertain tax positions as well as claims for environmental damages. In determining loss contingencies, the Company considers the likelihood of impairing an asset or the incurrence of a liability at the date of the consolidated financial statements as well as the ability to reasonably estimate the amount of such loss. The Company records a provision for a loss contingency when information available before the consolidated financial statements are issued or are available to be issued indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the consolidated financial statements and when the amount of loss can be reasonably estimated. The Company regularly re-evaluates claims to determine whether provisions need to be readjusted based on the most current information available to the Company. Changes in these evaluations could result in an adverse material impact on the Company’s results of operations, cash flows or its financial position for the period in which they occur. The Company has received and may in the future receive communications alleging possible infringements of third party patents or other third party intellectual property rights. Furthermore, the Company from time to time enters into discussions regarding a broad patent cross license arrangement with other industry participants. There is no assurance that such discussions may be brought to a successful conclusion and result in the intended agreement. The Company may become involved in costly litigation brought against the Company regarding patents, mask works, copyrights, trademarks or trade secrets. In the event that the outcome of any litigation would be unfavorable to the Company, the Company may be required to take a license to third party patents and/or other intellectual property rights at economically unfavorable terms and conditions, and possibly pay damages for prior use and/or face an injunction, all of which individually or in the aggregate could have a material adverse effect on the Company’s results of operations, cash flows, financial position and/or ability to compete. The Company is otherwise also involved in various lawsuits, claims, investigations and proceedings incidental to its business and operations. The Company regularly evaluates claims and legal proceedings together with their related probable losses to determine whether they need to be adjusted based on the current information available to the Company. There can be no assurance that its recorded reserves will be sufficient to cover the extent of its potential liabilities. Legal costs associated with claims are expensed as incurred. In the event of litigation which is adversely determined with respect to the Company’s interests, or in the event the Company needs to change its evaluation of a potential third-party claim, based on new evidence or communications, a material adverse effect could impact its operations or financial condition at the time it were to materialize. As of December 31, 2017, provisions for estimated probable losses with respect to claims and legal proceedings were not considered material.

Financial Instruments and Risk

Financial Instruments and Risk Management	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Financial Instruments and Risk Management	24. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT 24.1 Financial risk factors The Company is exposed to changes in financial market conditions in the normal course of business due to its operations in different foreign currencies and its ongoing investing and financing activities. The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. Financial risk management is carried out by a central treasury department (Corporate Treasury). Additionally, a Treasury Committee, chaired by the CFO, steers treasury activities and ensures compliance with corporate policies. Treasury activities are thus regulated by the Company’s policies, which define procedures, objectives and controls. The policies focus on the management of financial risk in terms of exposure to market risk, credit risk and liquidity risk. Treasury controls are subject to internal audits. Most treasury activities are centralized, with any local treasury activities subject to oversight from Corporate Treasury. Corporate Treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, use of derivative financial instruments, and investments of excess liquidity. The majority of cash and cash equivalents is held in U.S. dollars and Euros and is placed with financial institutions rated at least a single “A” long-term rating from two of the major rating agencies, meaning at least A3 from Moody’s Investor Service and A- from Standard & Poor’s and Fitch Ratings, or better. These ratings are closely and continuously monitored in order to manage exposure to the counterparty’s risk. Hedging transactions are performed only to hedge exposures deriving from operating, investing and financing activities conducted in the normal course of business. Market risk Foreign exchange risk The Company conducts its business on a global basis in various major international currencies. As a result, the Company is exposed to adverse movements in foreign currency exchange rates, primarily with respect to the Euro. Foreign exchange risk mainly arises from recognized assets and liabilities at the Company’s subsidiaries and future commercial transactions. Management has set up a policy to require the Company’s subsidiaries to hedge their entire foreign exchange risk exposure with the Company through financial instruments transacted or overseen by Corporate Treasury. To manage their foreign exchange risk arising from foreign-currency-denominated assets and liabilities, subsidiaries use forward contracts and purchased currency options. Foreign exchange risk arises when recognized assets and liabilities are denominated in a currency that is not the entity’s functional currency. These instruments do not qualify as hedging instruments for accounting purposes. Forward contracts and currency options, including collars, are also used by the Company to reduce its exposure to U.S. dollar fluctuations in Euro-denominated forecasted intercompany transactions that cover a large part of its research and development, selling, general and administrative expenses as well as a portion of its front-end manufacturing costs of semi-finished goods. The Company also hedges through the use of currency forward contracts certain Singapore dollar-denominated manufacturing forecasted transactions. The derivative instruments used to hedge these forecasted transactions meet the criteria for designation as cash flow hedge. The hedged forecasted transactions have a high probability of occurring for hedge accounting purposes. It is the Company’s policy to have the foreign exchange exposures in all the currencies hedged month by month against the monthly standard rate. At each month end, the forecasted flows for the coming month are hedged together with the fixing of the new standard rate. For this reason the hedging transactions will have an exchange rate very close to the standard rate at which the forecasted flows will be recorded on the following month. As such, the foreign exchange exposure of the Company, which consists in the balance sheet positions and other contractually agreed transactions, is always close to zero and any movement in the foreign exchange rates will not therefore influence the exchange effect on items of the consolidated statement of income. Any discrepancy from the forecasted values and the actual results is constantly monitored and prompt actions are taken, if needed. Derivative Instruments Not Designated as a Hedge The Company enters into foreign currency forward contracts to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies in the Company’s subsidiaries. These include receivables from international sales by various subsidiaries, payables for foreign currency-denominated purchases and certain other assets and liabilities arising from intercompany transactions. The notional amount of these financial instruments totaled $644 million, $375 million and $372 million at December 31, 2017, 2016 and 2015, respectively. The principal currencies covered at the end of the year 2017 are the Euro, the Singapore dollar, the Swiss franc, the China Yuan Renminbi, the Japanese yen, the Indian rupee, the Malaysian ringgit, the South Korean won, the British pound and the Philippines peso. The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The risk of loss associated with purchased currency options is equal to the premium paid when the option is not exercised. Foreign currency forward contracts not designated as cash flow hedge outstanding as of December 31, 2017 have remaining terms of 3 days to 162 days, maturing on average after 19 days. Derivative Instruments Designated as a Hedge To further reduce its exposure to U.S. dollar exchange rate fluctuations, the Company hedges through the use of currency forward contracts and currency options, including collars, certain Euro-denominated forecasted intercompany transactions that cover at year-end a large part of its research and development, selling, general and administrative expenses, as well as a portion of its front-end manufacturing costs of semi-finished goods within cost of sales. The Company also hedges through the use of currency forward contracts certain manufacturing transactions within cost of sales denominated in Singapore dollars. The principles regulating the hedging strategy for derivatives designated as cash flow hedge are established as follows: (i) for R&D and corporate costs, up to 80% of the total forecasted transactions; (ii) for manufacturing costs, up to 70% of the total forecasted transactions. In order to follow a dynamic hedge strategy, the Company may change the percentage of the designated hedged item within the limit of 100% of the forecasted transaction. The maximum length of time over which the Company could hedge its exposure to the variability of cash flows for forecasted transactions is 24 months. For the year ended December 31, 2017, the Company recorded a decrease in cost of sales of $16 million and a decrease in operating expenses of $14 million, related to the realized gains incurred on such hedged transactions. For the year ended December 31, 2016, the Company recorded an increase in cost of sales of $7 million and an increase in operating expenses of $2 million, related to the realized losses incurred on such hedged transactions. For the year ended December 31, 2015, the Company recorded an increase in cost of sales of $105 million and an increase in operating expenses of $65 million, related to the realized losses incurred on such hedged transactions. No significant ineffective portion of the hedge was recorded on the line “Other income and expenses, net” of the consolidated statements of income for the years ended December 31, 2017, 2016 and 2015. The notional amount of foreign currency forward contracts and currency options, including collars, designated as cash flow hedge totaled $1,393 million, $1,370 million and $1,449 million at December 31, 2017, 2016 and 2015, respectively. The forecasted transactions hedged at December 31, 2017 were determined to have a high probability of occurring. As of December 31, 2017, $45 million of deferred gains on derivative instruments included in “Accumulated other comprehensive income (loss)” were expected to be reclassified as earnings during the next 12 months based on the monthly forecasted research and development expenses, corporate costs and semi-finished manufacturing costs. No amount was reclassified as “Other income and expenses, net” into the consolidated statement of income from “Accumulated other comprehensive income (loss)” in the consolidated statement of equity. Foreign currency forward contracts, currency options and collars designated as cash flow hedge outstanding as of December 31, 2017 have remaining terms of 3 days to 12 months, maturing on average after 113 days. As at December 31, 2017, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated and Singapore dollar-denominated forecasted transactions: In millions of Euros Notional amount for hedge on forecasted R&D and other operating expenses Notional amount for hedge on forecasted manufacturing costs Forward contracts 237 352 Currency collars 208 284 In millions of Singapore dollars Notional amount for hedge on forecasted R&D and other operating expenses Notional amount for hedge on forecasted manufacturing costs Forward contracts — 130 Cash flow and fair value interest rate risk The Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. The Company analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. The Company invests primarily on a short-term basis and as such the Company’s liquidity is invested in floating interest rate instruments. As a consequence the Company is exposed to interest rate risk due to potential mismatch between the return on its short term floating interest rate investments and the portion of its long term debt issued at fixed rate. Price risk As part of its ongoing investing activities, the Company may be exposed to equity security price risk for investments in public entities. In order to hedge the exposure to this market risk, the Company may enter into certain derivative hedging transactions. Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2017 and December 31, 2016 is presented in the table below: As at December 31, 2017 As at December 31, 2016 Asset Derivatives Balance sheet location Fair Balance sheet location Fair Derivatives designated as a hedge: Foreign exchange forward contracts Other current assets 24 Other current assets 1 Currency collars Other current assets 13 Other current assets — Total derivatives designated as a hedge 37 1 Derivatives not designated as a hedge: Foreign exchange forward contracts Other current assets 4 Other current assets 1 Total derivatives not designated as a hedge: 4 1 Total Derivatives 41 2 As at December 31, 2017 As at December 31, 2016 Liability Derivatives Balance sheet location Fair Balance sheet location Fair Derivatives designated as a hedge: Foreign exchange forward contracts Other payables and accrued liabilities — Other payables and (31 ) Currency collars Other long-term liabilities — Other long-term (1 ) Currency collars Other payables and accrued liabilities — Other payables and (11 ) Total derivatives designated as a hedge — (43 ) Derivatives not designated as a hedge: Foreign exchange forward contracts Other payables and accrued liabilities (1 ) Other payables and (2 ) Total derivatives not designated as a hedge: (1 ) (2 ) Total Derivatives (1 ) (45 ) The effect on the consolidated statements of income for the year ended December 31, 2017 and December 31, 2016 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the statements of equity as at December 31, 2017 and December 31, 2016 of derivative instruments designated as cash flow hedge is presented in the table below: Gain (loss) deferred in Location of gain (loss) reclassified from OCI into earnings Gain (loss) reclassified from December 31, December 31, December 31, December 31, Foreign exchange forward contracts 18 (24 ) Cost of sales 12 (5 ) Foreign exchange forward contracts 2 (2 ) Selling, general and administrative 2 — Foreign exchange forward contracts 7 (8 ) Research and development 8 (1 ) Currency collars 12 (8 ) Cost of sales 4 (2 ) Currency collars 1 (1 ) Selling, general and administrative 1 — Currency collars 5 (4 ) Research and development 3 (1 ) Total 45 (47 ) 30 (9 ) No significant ineffective portion of the cash flow hedge relationships was recorded in earnings for the years ended December 31, 2017 and December 31, 2016. No amount was excluded from effectiveness measurement on foreign exchange forward contracts and collars. The effect on the consolidated statements of income for the year ended December 31, 2017 and December 31, 2016 of derivative instruments not designated as a hedge is presented in the table below: Location of gain recognized in earnings Gain recognized in earnings December 31, December 31, Foreign exchange forward contracts Other income and expenses, net 6 (3 ) Total 6 (3 ) The Company did not enter into any derivative containing significant credit-risk-related contingent features. The Company entered into currency collars as combinations of two options, which are reported, for accounting purposes, on a net basis. The fair value of these collars represented as at December 31, 2017 assets totalling $13 million (a gross amount of $14 million recognized assets offset with a liability of $1 million). In addition, the Company entered into other derivative instruments, primarily forward contracts, which are governed by standard International Swaps and Derivatives Association (“ISDA”) agreements, which are not offset in the statement of financial position, and representing total assets of $28 million and liabilities of $1 million as at December 31, 2017. Credit risk The Company selects banks and/or financial institutions that operate with the group based on the criteria of long-term rating from at least two major Rating Agencies and keeping a maximum outstanding amount per instrument with each bank not to exceed 20% of the total. The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal and external ratings in accordance with limits set by management. The utilization of credit limits is regularly monitored. Sales to customers are primarily settled in cash. At December 31, 2017 and 2016, no customer represented more than 10% of trade accounts receivable, net. Any remaining concentrations of credit risk with respect to trade receivables are limited due to the large number of customers and their dispersion across many geographic areas. Liquidity risk Prudent liquidity risk management includes maintaining sufficient cash equivalents and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. The Company’s objective is to maintain a significant cash position and a low debt-to-equity ratio, which ensure adequate financial flexibility. Liquidity management policy is to finance the Company’s investments with net cash provided from operating activities. Management monitors rolling forecasts of the Company’s liquidity reserve on the basis of expected cash flows. 24.2 Capital risk management The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to create value for shareholders and benefits and returns for other stakeholders, as to maintain an optimal capital structure. In order to maintain or adjust the capital structure, the Company may review the amount of dividends paid to shareholders, return capital to shareholders, or issue new shares. Consistent with others in the industry, the Company monitors capital on the basis of the net debt-to-equity ratio. This ratio is calculated as the net financial position of the Company, defined as the difference between total cash position (cash and cash equivalents, marketable securities — current and non-current — and current restricted cash, if any) net of total financial debt (bank overdrafts, if any, short-term borrowings and current portion of long-term debt as well as long-term debt), divided by total parent company stockholders’ equity. 24.3 Fair value measurement The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Company is the bid price. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using significant assumptions and estimates. When measuring fair value, the Company makes maximum use of market inputs and minimizes the use of unobservable inputs. The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2017: Fair Value Measurements using December 31, Quoted Prices in Significant Other Significant Marketable securities — U.S. Treasury Bonds 431 431 — — Equity securities classified as available-for-sale 11 11 — — Equity securities classified as held-for-trading 9 9 — — Derivative instruments designated as cash flow hedge 37 — 37 — Derivative instruments not designated as cash flow hedge 4 — 4 — Derivative instruments not designated as cash flow hedge (1 ) — (1 ) — Contingent consideration on business combinations (12 ) — — (12 ) Total 479 451 40 (12 ) The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2016: Fair Value Measurements using December 31, Quoted Prices in Significant Other Significant Marketable securities — U.S. Treasury Bonds 335 335 — — Equity securities classified as available-for-sale 11 11 — — Equity securities classified as held-for-trading 8 8 — — Derivative instruments designated as cash flow hedge 1 — 1 — Derivative instruments designated as cash flow hedge (43 ) — (43 ) — Derivative instruments not designated as cash flow hedge 1 — 1 — Derivative instruments not designated as cash flow hedge (2 ) — (2 ) — Contingent consideration on business combinations (12 ) — — (12 ) Total 299 354 (43 ) (12 ) For assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2017 and December 31, 2017 is presented as follows: Fair Value January 1, 2017 (12 ) Contingent consideration on business combination — December 31, 2017 (12 ) Amount of total losses for the period included in earnings attributable to assets still held at the reporting date — On July 28, 2016, the Company completed a transaction to acquire ams’ (SIX: AMS) assets and workforce related to Near-Field Communication (NFC) and Radio-frequency identification (RFID) Reader business, as described in Note 7. The purchase price consideration includes a cash payment of $78 million and the acquisition-date fair value of a sales earn-out of $12 million, which in any case will not exceed $37 million. The contingent consideration was measured at fair value as at December 31, 2017 based on a weighted-average probability projections of sales, discounted using a 1.8% cost of debt, which is the discount rate applicable to the transaction. The liability component of the convertible bonds issued on July 3, 2014 was measured at initial recognition at fair value based on a discount rate adjustment technique (income approach), which corresponds to a Level 3 fair value hierarchy measurement. The fair value of the liability component at initial recognition totaled $878 million and was estimated by calculating the present value of cash flows using a discount rate of 2.40% and 3.22% (including 1% per annum nominal interest), respectively, on each tranche, as the market rates for similar instruments with no conversion rights. The liability component of the convertible bonds was subsequently reported at amortized cost. In 2017, Tranche A and Tranche B convertible bonds were either converted or early redeemed by the Company, as described in details in Note 14. Before net-share settlement, the liability component was measured at fair value based on a discount rate adjustment technique (income approach), which corresponded to a Level 3 fair value hierarchy measurement and consisted in calculating the present value of cash flows using current market rates for similar bonds that have no conversion rights. The fair value of the liability component, as measured prior to extinguishment was $574 million for Tranche A bonds, which generated a loss amounting to $5 million and reflected a discount rate of 2.09%. The fair value of the liability component, as measured prior to extinguishment was $370 million for Tranche B bonds, which generated a loss amounting to $11 million and reflected a discount rate of 2.47%. The liability component of the convertible bonds issued on July 3, 2017 was measured at initial recognition at fair value based on a discount rate adjustment technique (income approach), which corresponds to a Level 3 fair value hierarchy measurement. The fair value of the liability component at initial recognition totaled $1,266 million before allocation of issuance costs, and was estimated by calculating the present value of cash flows using a discount rate of 2.70% and 3.28% (including 0.25% per annum nominal interest), respectively, on each tranche, which were determined to be consistent with the market rates at the time for similar instruments with no conversion rights. The liability component of the convertible bonds was subsequently reported at amortized cost. The business combination concluded on July 28, 2016 resulted in the recognition at fair value on a non-recurring basis upon acquisition of property, plant and equipment amounting to $2 million, technology amounting to $6 million, in-process R&D amounting to $40 million and a $42 million goodwill. The fair value of the recognized intangible assets was determined using the Multi-period Excess Earnings Method (“MEEM”)-approach combined with a Monte Carlo simulation of the acquired business to estimate the probable outcomes using a given number of iteration of the projections, which corresponds to a Level 3 fair value hierarchy. The Company evaluated in 2017, 2016 and 2015 for impairment the aggregate carrying amount of cost-method investments. No impairment charge was recorded on these investments in 2017, 2016 and 2015. The following table includes additional fair value information on financial assets and liabilities as at December 31, 2017 and 2016: 2017 2016 Level Carrying Estimated Carrying Estimated Cash equivalents (1) 1 1,303 1,303 960 960 Long-term debt — Bank loans (including current portion) 2 423 423 525 525 — Senior unsecured convertible bonds (2) 1 1,278 1,860 926 1,127 (1) Cash equivalents primarily correspond to deposits at call with banks. (2) The carrying amount of the senior unsecured convertible bonds as reported above corresponds to the liability component only, since, at initial recognition, an amount of $121 million was recorded directly in shareholders’ equity as the value of the equity instrument embedded in the convertible bonds issued on July 3, 2014 and outstanding as at December 31, 2016. For the convertible bonds issued on July 3, 2017 and outstanding as at December 31, 2017, the carrying amount of the senior unsecured convertible bonds corresponds to the liability component only, since, at initial recognition, an amount of $242 million was recorded directly in shareholders’ equity as the value of the equity instrument embedded in the convertible instrument. The table below details securities that were in an unrealized loss position as at December 31, 2017. The securities are segregated by investment type and length of time that the individual securities have been in a continuous unrealized position as at December 31, 2017. December 31, 2017 Less than 12 months More than 12 months Total Description Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasury Bonds 332 (1 ) — — 332 (1 ) Total 332 (1 ) — — 332 (1 ) The methodologies used to estimate fair value are as follows: Debt securities classified as available-for-sale The fair value of these debt securities is estimated based upon quoted market prices for identical instruments. Foreign exchange forward contracts, currency options and collars The fair value of these instruments is estimated based upon quoted market prices for similar instruments. Marketable securities classified as available-for-sale The fair values of these instruments are estimated based upon market prices for identical instruments. Equity securities classified as available-for-sale The fair values of these instruments are estimated based upon market prices for identical instruments. Trading equity securities The fair value of these instruments is estimated based upon quoted market prices for the same instruments. Equity securities carried at cost The non-recurring fair value measurement is based on the valuation of the underlying investments on a new round of third party financing or upon liquidation. Long-term debt and current portion of long-term debt The fair value of bank loans is determined by estimating future cash flows on a borrowing-by-borrowing basis and discounting these future cash flows using the Company’s incremental borrowing rates for similar types of borrowing arrangements. The senior unsecured convertible bonds have been trading on the open market segment of the Frankfurt Stock Exchange since issuance. The fair value of these instruments is the observable price of the bonds on that market. Cash and cash equivalents, accounts receivable, short-term borrowings, and accounts payable The carrying amounts reflected in the consolidated financial statements are reasonable estimates of fair value due to the relatively short period of time between the origination of the instruments and their expected realization.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	25. RELATED PARTY TRANSACTIONS Transactions with significant shareholders, their affiliates and other related parties were as follows: December 31, December 31, December 31, Sales & other services — 1 7 Other purchases 12 1 65 Accounts receivable 7 7 8 Accounts payable 51 51 61 For the years ended December 31, 2017, 2016 and 2015, the related party transactions were primarily with significant shareholders of the Company, or their subsidiaries and companies in which management of the Company perform similar policymaking functions. These include, but are not limited to: Orange, MicroOLED, Technicolor and Incard do Brazil. The related party transactions presented in the table above also include transactions between the Company and its equity-method investments as listed in Note 11. The Company made a contribution of $0.5 million for the year ended December 31, 2017 to the ST Foundation, a non-profit organization established to deliver and coordinate independent programs in line with its mission. For the year ended December 31, 2016 there was no contribution and for the year ended December 31, 2015 this contribution amounted to $0.5 million. Certain members of the Foundation’s Board are senior members of the Company’s management.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment Information	26. SEGMENT INFORMATION The Company designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, application-specific integrated circuits (“ASICs”), full custom devices and semi-custom devices and application-specific standard products (“ASSPs”) for analog, digital, and mixed-signal applications, as well as Subsystems. In addition, the Company further participates in the manufacturing value chain of smartcard products, which includes the production and sale of both silicon chips and smartcards. Commencing in the fourth quarter of 2017, we transferred the Imaging Product Division, previously reported in Others, into the Analog and MEMS Group (AMG) to create the new organization Analog, MEMS and Sensors Group (AMS). Comparative numbers were restated accordingly. Our reportable segments are as follows: • Automotive and Discrete Group (ADG) • Analog, MEMS and Sensors Group (AMS) • Microcontrollers and Digital ICs Group (MDG) “Others” includes items such as unused capacity charges, impairment & restructuring charges and other related closure costs, phase out and start-up costs, and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of Subsystems, assembly services and other revenue. For the computation of the segments’ internal financial measurements, we use certain internal rules of allocation for the costs not directly chargeable to the segments, including cost of sales, selling, general and administrative expenses and a part of research and development expenses. In compliance with our internal policies, certain costs are not allocated to the segments, including impairment, restructuring charges and other related closure costs, unused capacity charges, phase-out and start-up costs of certain manufacturing facilities, certain one-time corporate items, strategic and special research and development programs or other corporate-sponsored initiatives, including certain corporate-level operating expenses and certain other miscellaneous charges. In addition, depreciation and amortization expense is part of the manufacturing costs allocated to the segments and is neither identified as part of the inventory variation nor as part of the unused capacity charges; therefore, it cannot be isolated in the costs of goods sold. Finally, R&D grants are allocated to our segments proportionally to the incurred R&D expenses on the sponsored projects. Wafer costs are allocated to the segments based on actual cost. From time to time, with respect to specific technologies, wafer costs are allocated to segments based on market price. The following tables present the Company’s consolidated net revenues and consolidated operating income by reportable segment. December 31, December 31, December 31, Automotive and Discrete Group (ADG) 3,059 2,813 2,731 Analog, MEMS and Sensors Group (AMS) 2,613 1,847 1,851 Microcontrollers and Digital ICs Group (MDG) 2,646 2,285 2,292 Total net revenues of product segments 8,318 6,945 6,874 Others 29 28 23 Total consolidated net revenues 8,347 6,973 6,897 Operating income by reportable segment: December 31, December 31, December 31, Automotive and Discrete Group (ADG) 289 211 194 Analog, MEMS and Sensors Group (AMS) 365 46 27 Microcontrollers and Digital ICs Group (MDG) 402 108 29 Total operating income of product segments 1,056 365 250 Others (1) (63 ) (151 ) (141 ) Total consolidated operating income 993 214 109 (1) Operating results of “Others” include items such as unused capacity charges, impairment & restructuring charges and other related closure costs, phase out and start-up costs, and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of Subsystems, assembly services and other revenue. Reconciliation of operating income of segments to the total operating income: December 31, December 31, December 31, Total operating income of segments 1,056 365 250 Impairment, restructuring charges and other related closure costs (45 ) (93 ) (65 ) Unallocated manufacturing results 7 (33 ) (69 ) Strategic and other research and development programs and other non-allocated provisions (1) (25 ) (25 ) (7 ) Total operating loss Others (63 ) (151 ) (141 ) Total consolidated operating income 993 214 109 (1) Includes unallocated income and expenses such as certain corporate-level operating expenses and other costs/income that are not allocated to the product segments. The following is a summary of operations by entities located within the indicated geographic areas for 2017, 2016 and 2015. Net revenues represent sales to third parties from the country in which each entity is located. Long-lived assets consist of property, plant and equipment, net (PP&E, net). A significant portion of property, plant and equipment expenditures is attributable to front-end and back-end facilities, located in the different countries in which the Company operates. As such, the Company mainly allocates capital spending resources according to geographic areas rather than along product segment areas. Net revenues December 31, December 31, December 31, The Netherlands 2,223 1,751 1,667 France 123 134 169 Italy 60 58 58 USA 1,012 990 1,039 Singapore 4,444 3,699 3,606 Japan 463 323 332 Other countries 22 18 26 Total 8,347 6,973 6,897 Property, plant and equipment December 31, December 31, The Netherlands 588 462 France 603 520 Italy 719 445 Other European countries 83 84 USA 6 6 Singapore 428 277 Malaysia 200 166 Other countries 467 327 Total 3,094 2,287

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2017
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	Valuation and qualifying accounts deducted from the related asset accounts Balance at Translation Charged to Additions/ Balance (Currency — millions of U.S. dollars) 2017 Accounts Receivable 12 — — 3 15 Deferred Tax Assets 1,578 24 3 (103 ) 1,502 2016 Accounts Receivable 7 — 3 2 12 Deferred Tax Assets 1,585 (4 ) 13 (16 ) 1,578 2015 Accounts Receivable 8 — 2 (3 ) 7 Deferred Tax Assets 1,607 (28 ) 24 (18 ) 1,585

Accounting Policies (Policies)

Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Principles of consolidation	2.1 — Principles of consolidation The Company’s consolidated financial statements include the assets, liabilities, results of operations and cash flows of its majority-owned subsidiaries. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Intercompany balances and transactions have been eliminated in consolidation. The Company assesses each investment in equity securities to determine whether the investee is a Variable Interest Entity (“VIE”). The Company consolidates the VIEs for which the Company is determined to be the primary beneficiary. The primary beneficiary of a VIE is the party that: (i) has the power to direct the most significant activities of the VIE and (ii) is obligated to absorb losses or has the rights to receive returns that would be considered significant to the VIE. Assets, liabilities, and the noncontrolling interest of newly consolidated VIEs are initially measured at fair value in the same manner as if the consolidation resulted from a business combination. When the Company owns some, but not all, of the voting stock of a consolidated entity, the shares held by third parties represent a noncontrolling interest. The consolidated financial statements are prepared based on the total amount of assets and liabilities and income and expenses of the consolidated subsidiaries. However, the portion of these items that does not belong to the Company is reported on the line “Noncontrolling interest” in the consolidated financial statements.
Use of estimates	2.2 — Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. The primary areas that require significant estimates and judgments by management include, but are not limited to: • sales returns and allowances, • inventory obsolescence reserves and normal manufacturing capacity thresholds to determine costs capitalized in inventory, • recognition and measurement of loss contingencies, • valuation at fair value of assets acquired or sold, including intangibles, goodwill, investments and tangible assets, • annual and trigger-based impairment review of goodwill and intangible assets, as well as the assessment, in each reporting period, of events, which could trigger impairment testing on long-lived assets, • assessment of other-than-temporary impairment charges on financial assets, including equity-method investments, • recognition and measurement of restructuring charges and other related exit costs, • assumptions used in assessing the number of awards expected to vest on stock-based compensation plans, • assumptions used in calculating pension obligations and other long-term employee benefits, • allocation between debt and equity of the various components of an issued, or converted, hybrid instrument and measurement at fair value of the liability component based on a discount rate adjustment technique income approach, and • determination of the amount of taxes expected to be paid and tax benefit expected to be received, including deferred income tax assets, valuation allowance and provisions for uncertain tax positions and claims. The Company bases the estimates and assumptions on historical experience and on various other factors such as market trends, market information used by market participants and the latest available business plans that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. While the Company regularly evaluates its estimates and assumptions, the actual results experienced by the Company could differ materially and adversely from those estimates.
Foreign currency	2.3 — Foreign currency The U.S. dollar is the reporting currency of the Company. The U.S. dollar is the currency of the primary economic environment in which the Company operates since the worldwide semiconductor industry uses the U.S. dollar as a currency of reference for actual pricing in the market. Furthermore, the majority of the Company’s transactions are denominated in U.S. dollars, and revenues from external sales in U.S. dollars largely exceed revenues in any other currency. However, certain significant costs are largely incurred in the countries of the Euro zone and other non-U.S. dollar currency areas. The functional currency of each subsidiary of the Company is either the local currency or the U.S. dollar, depending on the basis of the economic environment in which each subsidiary operates. Foreign currency transactions, including operations in local currency when the U.S. dollar is the functional currency, are measured into the functional currency using the prevailing exchange rate. Foreign exchange gains and losses resulting from the re-measurement at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statements of income on the line “Other income and expenses, net”. For consolidation purposes, the results and financial position of the subsidiaries whose functional currency is different from the U.S. dollar are translated into the reporting currency as follows: (a) assets and liabilities for each consolidated balance sheet presented are translated at the closing exchange rate as of the balance sheet date; (b) income and expenses for each consolidated statement of income presented are translated at the average monthly exchange rate; (c) the resulting exchange differences are reported as Currency Translation Adjustments (“CTA”), a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income.
Cash and cash equivalents	2.4 — Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with external financial institutions and other short-term highly liquid investments with original maturities to the Company of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Bank overdrafts are not netted against cash and cash equivalents and are shown as part of current liabilities on the consolidated balance sheets.
Trade accounts receivable	2.5 — Trade accounts receivable Trade accounts receivable are amounts due from customers for goods sold and services rendered to third parties in the ordinary course of business. They are reported net of allowances for doubtful accounts. The Company maintains an allowance for doubtful accounts for potential estimated losses resulting from its customers’ inability to make required payments. The Company bases its estimates on historical collection trends and records an allowance accordingly. Additionally, the Company evaluates its customers’ financial condition periodically and records an allowance for any specific account it considers as doubtful. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the charge is recognized on the line “Selling, general and administrative” in the consolidated statements of income. Subsequent recoveries, if any, of amounts previously provided for are credited against the same line in the consolidated statements of income. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivable. In the event of transfers of receivables such as factoring, the Company derecognizes the receivables only to the extent that the Company has surrendered control over the receivables in exchange for a consideration other than beneficial interest in the transferred receivables.
Inventories	2.6 — Inventories Inventories are stated at the lower of cost and net realizable value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the unused capacity are not included in the valuation of inventories but charged directly to cost of sales. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company performs, on a continuous basis, inventory write-offs of products, which have the characteristics of slow-moving, old production dates and technical obsolescence. Indeed, the Company evaluates its product inventory to identify obsolete or slow-selling items as well as inventory that is not of saleable quality and records a specific reserve if the Company estimates the inventory will eventually become obsolete. Reserve for obsolescence is estimated for excess uncommitted inventory based on the previous quarter sales, order backlog and production plans.
Income taxes	2.7 — Income taxes Income tax for the period comprises current and deferred income tax. Current income tax represents the income tax expected to be paid or the tax benefit expected to be received related to the current year taxable profit and loss in each tax jurisdiction. Deferred income tax is recognized, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit and loss. Moreover, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is determined using tax rates and laws that are enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect on deferred tax assets and liabilities from changes in tax laws and tax rates is recognized on the line “Income tax benefit (expense)” in the consolidated statements of income in the period in which the law is enacted. Deferred income tax assets are recognized in full, but the Company assesses whether future taxable profit will be available against which temporary differences can be utilized. A valuation allowance is provided for deferred tax assets when management considers it is more likely than not that they will not be realized. The Company recognizes a deferred tax liability on undistributed earnings of subsidiaries when there is a presumption that the earnings will be remitted to the parent. A deferred tax asset is recognized on compensation for the grant of stock awards to the extent that such charge constitutes a temporary difference in the subsidiaries’ local tax jurisdictions. Changes in the stock price do not impact the deferred tax asset and do not result in any adjustments prior to vesting. When the actual tax deduction is determined, generally upon vesting, it is compared to the deferred tax asset as recognized over the vesting period. When a windfall tax benefit is determined (as the excess tax benefit of the actual tax deduction over the deferred tax asset) the excess tax benefit is recorded as a discrete item in the consolidated statements of income on the line “Income tax benefit (expense)”. In case of shortfall, only the actual tax benefit is to be recognized in the consolidated financial statements and the Company writes off the deferred tax asset at the level of the actual tax deduction. At each reporting date, the Company assesses all material open income tax positions in all tax jurisdictions to determine any uncertain tax positions. The Company uses a two-step process for the evaluation of uncertain tax positions. The first step consists in determining whether a benefit may be recognized; the assessment is based on a more-likely-than-not recognition threshold. If the sustainability is lower than 50%, a full provision should be accounted for. In case of a sustainability threshold in step one higher than 50%, the Company must perform a second step in order to measure the amount of recognizable tax benefit, net of any liability for tax uncertainties. The measurement methodology in step two is based on a “cumulative probability” approach, resulting in the recognition of the largest amount that is greater than 50% likely of being realized upon settlement with the taxing authority. The unrecognized tax benefit is recorded as a reduction of a deferred tax asset to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of the tax position. The Company accrues for interest and penalties on uncertain tax liabilities reported on the consolidated balance sheets. Interests and penalties are classified as components of income tax expense in the consolidated statements of income.
Assets held for sale	2.8 — Assets held for sale Asset groups are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. The asset groups are classified as assets held for sale when the following conditions have been met: management has approved the plan to sell; assets are available for immediate sale; assets are actively being marketed; sale is probable of occurring within one year; price is reasonable in the market and it is unlikely that there will be significant changes in the assets to be sold or a withdrawal to the plan to sell. Asset groups classified as held for sale are reported as current assets in the consolidated balance sheets at the lower of their carrying amount and fair value less costs to sell. Long-lived assets classified as held for sale are no longer depreciated. When the held-for-sale accounting treatment requires an impairment charge for the difference between the carrying amount and fair value, such impairment is reflected on the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs”.
Business combinations and goodwill	2.9 — Business combinations and goodwill The purchase accounting method is applied to all business combinations. The identifiable assets acquired, equity instruments issued, and liabilities assumed are measured at fair value on the acquisition date. Any contingent purchase price and acquired contingencies are recorded at fair value on the acquisition date and at each reporting date. Acquisition-related transaction costs and restructuring costs relating to the acquired business are expensed as incurred. Acquired in-process research and development (“IPR&D”) is capitalized and recorded as an intangible asset on the acquisition date, subject to impairment testing until the research or development is completed or abandoned. The excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed is recorded as goodwill. In case of a bargain purchase, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed; the noncontrolling interest in the acquiree, if any; the Company’s previously held equity interest in the acquiree, if any; and the consideration transferred. If after this review, a bargain purchase is still indicated, it is recognized in earnings attributed to the Company. The purchase of additional interests in a partially owned subsidiary is treated as an equity transaction as well as all transactions concerning the sale of subsidiary stock or the issuance of stock by the partially owned subsidiary as long as there is no change in control of the subsidiary. If as a consequence of selling subsidiary shares, the Company no longer controls the subsidiary, the Company recognizes a gain or loss in earnings. Goodwill represents the excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized but is tested annually for impairment, or more frequently if indicators of impairment exist. Goodwill subject to potential impairment is tested at a reporting unit level. The impairment test determines whether the fair value of each reporting unit for which goodwill is allocated is lower than the total carrying amount of relevant net assets allocated to such reporting unit, including its allocated goodwill. If lower, the implied fair value of the reporting unit goodwill is then compared to the carrying value of the goodwill and an impairment charge is recognized for any excess in the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs”. Significant management judgments and estimates are used in forecasting the future discounted cash flows associated with the reporting unit, including: the applicable industry’s sales volume forecast and selling price evolution, the reporting unit’s market penetration and its revenues evolution, the market acceptance of certain new technologies and products, the relevant cost structure, the discount rates applied using a weighted average cost of capital and the perpetuity rates used in calculating cash flow terminal values.
Intangible assets with finite useful lives	2.10 — Intangible assets with finite useful lives Intangible assets subject to amortization include the intangible assets purchased from third parties recorded at cost and intangible assets acquired in business combinations recorded at fair value. Amortization begins when the intangible asset is available for use and is calculated using the straight-line method to allocate the cost of the intangible assets over their estimated useful lives. The carrying value of intangible assets with finite useful lives is evaluated whenever changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs” for the amount by which the asset’s carrying amount exceeds its fair value. The Company evaluates the remaining useful life of an intangible asset at each reporting date to determine whether events and circumstances warrant a revision to the remaining period of amortization. Trademarks, technologies and licenses Separately acquired trademarks and licenses are recorded at historical cost. Trademarks and licenses acquired in a business combination are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life which ranges from 3 to 7 years and are carried at cost less accumulated amortization and impairment losses, if any. Computer software Separately acquired computer software is recorded at historical cost. Costs associated with maintaining computer software programs are expensed as incurred and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to their intended use. The capitalization of costs for internally generated software developed by the Company for its internal use begins when the preliminary project stage is completed and when the Company, implicitly or explicitly, authorizes and commits to funding a computer software project. It must be probable that the project will be completed and will be used to perform the function intended. Amortization on computer software begins when the software is available for use and is calculated using the straight-line method over the estimated useful life, which does not exceed 4 years.
Property, plant and equipment	2.11 — Property, plant and equipment Property, plant and equipment are stated at historical cost, net of accumulated depreciation and any impairment losses. Property, plant and equipment acquired in a business combination are recognized at fair value at the acquisition date. Major additions and improvements are capitalized, while minor replacements and repairs are expensed and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to their intended use. Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: Buildings 33 years Facilities and leasehold improvements 5-10 years Machinery and equipment 3-10 years Computer and R&D equipment 3-6 years Other 2-5 years The Company evaluates each period whether there is reason to suspect that tangible assets or groups of assets held and used might not be recoverable. Several impairment indicators exist for making this assessment, such as: restructuring plans, significant changes in the technology, market, economic or legal environment in which the Company operates, available evidence of obsolescence of the asset, or indication that its economic performance is, or will be, worse than expected. In determining the recoverability of assets to be held and used, the Company initially assesses whether the carrying value of the tangible assets or group of assets exceeds the undiscounted cash flows associated with these assets. If exceeded, the Company then evaluates whether an impairment charge is required by determining if the asset’s carrying value also exceeds its fair value. This fair value is normally estimated by the Company based on independent market appraisals or the sum of discounted future cash flows, using market assumptions such as the utilization of the Company’s fabrication facilities and the ability to upgrade such facilities, change in the selling price and the adoption of new technologies. The Company also evaluates, and adjusts if appropriate, the assets’ useful lives, at each date or when impairment indicators are identified. When property, plant and equipment are retired or otherwise disposed of, the net book value of the assets is removed from the Company’s books. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in “Other income and expenses, net” in the consolidated statements of income. Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. Assets leased under capital leases are included in “Property, plant and equipment, net” on the consolidated balance sheets and recorded at inception at the lower of their fair value and the present value of the minimum lease payments. They are depreciated over the shorter of their estimated useful life and the lease term unless there is a reasonable certainty that ownership will be obtained by the end of the lease term. The financial liability corresponding to the contractual obligation to proceed of future lease payments is included as “Long-term debt” on the consolidated balance sheets, as described in Note 2.14. Lease arrangements classified as operating leases are arrangements in which the lessor retains a significant portion of the risks and rewards of ownership of the leased assets. Payments made under operating leases are recognized on a straight-line basis over the lease period and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to the intended use of the leased asset.
Investments in equity securities	2.12 — Investments in equity securities Investments in equity securities that have readily determinable fair values and for which the Company does not have the ability to exercise significant influence are classified as trading or available-for-sale equity securities, as described in Note 2.23. Investments in equity securities without readily determinable fair values and for which the Company does not have the ability to exercise significant influence are accounted for under the cost-method. Under the cost-method of accounting, investments are carried at historical cost and are adjusted only for declines in value deemed to be other-than-temporary. The fair value of a cost-method investment is estimated on a non-recurring basis when there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. An impairment loss is immediately recorded in the consolidated statements of income on the line “Gain (loss) on financial instruments, net” when it is assessed to be other-than-temporary and is based on the Company’s assessment of any significant and sustained reductions in the investment’s fair value. For unquoted equity securities, assumptions and estimates used in measuring fair value include the use of recent arm’s length transactions when they reflect the orderly exit price of the investments. Gains and losses on investments sold are determined on the specific identification method and are recorded as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. Equity-method investments are all entities over which the Company has the ability to exercise significant influence but not control, generally representing a shareholding of between 20% and 50% of the voting rights. These investments are valued under the equity-method and are initially recognized at cost. Goodwill on equity-method investments is included in the carrying value of the investment and is not individually tested for impairment. The Company’s share in the result of operations of equity-method investments is recognized in the consolidated statements of income on the line “Income (loss) on equity-method investments” and in the consolidated balance sheets as an adjustment to the carrying amount of the investments. Where there has been a change recognized directly in the equity of the investee, the Company recognizes its share in the adjustment, when applicable, directly in the consolidated statement of equity. The financial statements of the equity-method investments are prepared for the same reporting period as the Company or with a time lag not exceeding three months if the investee cannot issue consolidated financial statements within the closing timeframe requirements of the Company. At each period-end, the Company assesses whether there is objective evidence that its interests in equity-method investments are impaired. Once a determination is made that an other-than-temporary impairment exists, the Company writes down the carrying value of the equity-method investment to its fair value at the balance sheet date, which establishes a new cost basis. The fair value of an equity-method investment is measured on a non-recurring basis using primarily a combination of an income approach, based on discounted cash flows, and a market approach with financial metrics of comparable public companies.
Provisions	In determining loss contingencies, the Company considers the likelihood of the incurrence of a liability as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss from a loss contingency is accrued when information available indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and when the amount of the loss can be reasonably estimated.
Long-term debt	2.14 — Long-term debt (a) Convertible debt The Company evaluates at initial recognition of a convertible debt the different components and features of the hybrid instruments and determines whether certain elements are embedded derivative instruments which require bifurcation. Components of convertible debt instruments that may be settled in cash upon conversion based on a net-share settlement basis are accounted for separately as long-term debt and equity when the conversion feature of the convertible bonds constitute an embedded equity instrument. When an equity instrument is identified, proceeds from issuance are allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. The liability component is measured as the fair value of a similar nonconvertible debt, which results in the recognition of a debt discount. On subsequent periods, the Company amortizes the debt discount through earnings on the line “Interest income (expense), net” of the consolidated statements of income, using the interest method, based on the expected maturity of the debt. The equity component, reported on the line “Capital Surplus” of the consolidated statement of shareholders’ equity, is not remeasured. Debt issuance costs are reported as a deduction of debt. They are subsequently amortized through earnings on the line “Interest income (expense), net” of the consolidated statements of income, using the effective interest rate method. In case of conversion from the bondholders, the fair value of the consideration transferred is allocated between the liability component and the equity component. The difference between the carrying amount of the debt at the settlement date and the fair value of the debt component is recorded in earnings as a loss on debt extinguishment and reported on the line “Loss on financial instruments, net” of the consolidated statements of income. The liability component is measured as the fair value of a similar nonconvertible debt prior to settlement. The reacquired equity component is recorded in equity and reported on the line Capital Surplus of the consolidated statement of shareholders’ equity. (b) Bank loans Bank loans and non-convertible senior bonds are recognized at historical cost, net of debt issuance costs incurred. They are subsequently reported at amortized cost; any difference between the proceeds (net of debt issuance costs) and the redemption value is recognized through earnings on the line “Interest income (expense), net” of the consolidated statements of income over the period of the borrowings using the effective interest rate method. (c) Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. The Company reports the leased assets on the line “Property, plant and equipment, net” on the consolidated balance sheets and recognizes a financial liability for the contractual obligation to future lease payments, which is reported as “Long-term debt” on the consolidated balance sheets. Each lease payment is allocated between the debt repayment and interest expense.
Employee benefits	2.15 — Employee benefits (a) Pension obligations The Company sponsors various pension schemes for its employees. These schemes conform to local regulations and practices in the countries in which the Company operates. Such plans include both defined benefit and defined contribution plans. For defined benefit pension plans, the liability recognized in the consolidated balance sheets is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The overfunded or underfunded status of the defined benefit plans are calculated as the difference between plan assets and the projected benefit obligations. Significant estimates are used in determining the assumptions incorporated in the calculation of the pension obligations, which is supported by input from independent actuaries. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in “Accumulated Other Comprehensive Income (Loss)” in the consolidated statements of equity and are charged or credited to income over the employees’ expected average remaining working lives. Past service costs are recognized immediately in earnings, unless the changes to the pension scheme are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are recognized in “Accumulated Other Comprehensive Income (Loss)” in the consolidated statements of equity and are amortized on a straight-line basis over the vesting period. The net periodic benefit cost of the year is determined based on the assumptions used at the end of the previous year. For defined contribution pension plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. (b) Other post-employment obligations The Company provides post-employment benefits to some of its retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and to the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to income over the expected average remaining working lives of the related employees. (c) Termination benefits Termination benefits are payable when an employee is involuntarily terminated, or whenever an employee accepts voluntary termination in exchange for termination benefits. For the accounting treatment and timing recognition of involuntary termination benefits, the Company distinguishes between one-time termination benefit arrangements and ongoing termination benefit arrangements. A one-time termination benefit arrangement is established by a termination plan and applies to a specified termination event. One-time involuntary termination benefits are recognized as a liability when the termination plan meets certain criteria and has been communicated to employees. If employees are required to render future service in order to receive these one-time termination benefits, the liability is recognized ratably over the future service period. Termination benefits other than one-time termination benefits are termination benefits for which the communication criterion is not met but that are committed to by management, or termination obligations that are not specifically determined in a new and single plan. These termination benefits are all legal, contractual and past practice termination obligations to be paid to employees in case of involuntary termination. These termination benefits are accrued for when commitment creates a present obligation to others for the benefits expected to be paid, when it is probable that employees will be entitled to the benefits and the amount can be reasonably estimated. In case of special termination benefits related to voluntary redundancy programs, the Company recognizes a provision for voluntary termination benefits at the date on which the employee irrevocably accepts the offer and the amount can be reasonably estimated. (d) Profit-sharing and bonus plans The Company recognizes a liability and an expense for bonuses and profit-sharing plans when a contractual obligation exists or where there is a past practice that has created a present obligation. (e) Other long-term employee benefits The Company provides long-term employee benefits such as seniority awards in certain countries. The entitlement to these benefits is usually conditional on the employee completing a minimum service period. The expected costs of these benefits are accrued over the period of employment. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to earnings in the period of change. These obligations are valued annually with the assistance of independent qualified actuaries. (f) Share-based compensation The Company grants unvested stock awards to senior executives and selected employees for services. The awards granted to employees vest over a three-year service period. For certain employees, awards contingently vest upon achieving certain performance conditions. The Company measures the cost of the awards based on the grant-date fair value of the awards, reflecting the market price of the underlying shares at the date of the grant, reduced by the present value of the dividends expected to be paid on the shares during the requisite service period. That cost is recognized using graded vesting over the period during which an employee is required to provide service in exchange for the award or the requisite service period. Compensation is recognized only for the awards that ultimately vest. The compensation cost is recorded through earnings against equity, under “Capital surplus” in the consolidated statements of equity. The compensation cost is calculated based on the number of awards expected to vest, which includes assumptions on the number of awards to be forfeited due to the employees’ failing to fulfill the service condition, and forfeitures following the non-completion of one or more performance conditions. Liabilities for the Company’s portion of payroll taxes are recognized at vesting, which is the event triggering the payment of the social contributions in most of the Company’s local tax jurisdictions. Employee-related social charges are measured based on the intrinsic value of the share and recorded at vesting date.
Share capital	2.16 — Share capital Ordinary shares are classified as “Common stock” within equity on the consolidated balance sheets. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where the Company purchases its own equity share capital (treasury stock), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company’s shareholders until the shares are cancelled, reissued or disposed of.
Comprehensive income (loss)	2.17 — Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of a business during a period except those changes resulting from investment by stockholders and distributions to stockholders. In the accompanying consolidated financial statements, “Other comprehensive income (loss)” and “Accumulated other comprehensive income” primarily consists of foreign currency translation adjustments, temporary unrealized gains (losses) on securities classified as available-for-sale, unrealized gains (losses) on derivatives designated as cash flow hedge and the impact of recognizing the funded status of defined benefit plans, net of tax.
Revenue Recognition	2.18 — Revenue Recognition Revenue is recognized as follows: Net sales Revenue from products sold to customers is recognized when all the following conditions have been met: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred; (c) the selling price is fixed or determinable; and (d) collection is reasonably assured. Revenue recognition usually occurs at the time of shipment. Consistent with standard business practice in the semiconductor industry, price protection is granted to distribution customers on their existing inventory of the Company’s products to compensate them for declines in market prices. The Company accrues a provision for price protection based on a rolling historical price trend computed on a monthly basis as a percentage of gross distributor sales. This historical price trend represents differences in recent months between the invoiced price and the final price to the distributor, adjusted if required, to accommodate a significant change in the current market price. The short outstanding inventory time period, visibility into the inventory product pricing and long distributor pricing history have enabled the Company to reliably estimate price protection provisions at period-end. The Company records the accrued amounts as a deduction of “Net sales” in the consolidated statements of income at the time of the sale. The Company’s customers occasionally return the Company’s products for technical reasons. The Company’s standard terms and conditions of sale provide that if the Company determines that products do not conform, the Company will repair or replace the non-conforming products, or issue a credit note or rebate of the purchase price. Quality returns are identified shortly after sale in customer quality control testing. Quality returns are usually associated with end-user customers, not with distribution channels. The Company records the accrued amounts as a deduction of “Net sales” in the consolidated statements of income, using past history and current conditions to form a reasonable estimate of future returns. The Company’s insurance policy relating to product liability covers third party physical damages and bodily injury, indirect financial damages as well as immaterial non-consequential damages caused by defective products. The Company records a provision for warranty costs as a charge against “Cost of sales” in the consolidated statements of income, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period. Any potential warranty claims are subject to the Company’s determination that the Company is at fault for damages, and such claims usually must be submitted within a short period of time following the date of sale. This warranty is given in lieu of all other warranties, conditions or terms expressed or implied by statute or common law. The Company’s contractual terms and conditions typically limit its liability to the sales value of the products which gave rise to the claims. Other revenues Other revenues consist of license revenue, service revenue related to transferring licenses, patent royalty income, sale of scrap materials and manufacturing by-products. While the majority of the Company’s sales agreements contain standard terms and conditions, the Company may, from time to time, enter into agreements that contain multiple elements or terms and conditions, which require judgment. Where multiple elements exist in an arrangement, the arrangement consideration is allocated to the different elements based on their respective selling price determined using vendor-specific objective evidence, third party evidence or management’s best estimate of the selling price of the separable deliverables and the applicable revenue recognition criteria are applied to each of the separate elements. These arrangements generally do not include performance-, cancellation-, termination- or refund-type provisions.
Advertising costs	2.20 — Advertising costs Advertising costs are expensed as incurred and are recorded as “Selling, general and administrative” in the consolidated statements of income. Advertising expenses for 2017, 2016 and 2015 were $14 million, $11 million and $9 million, respectively.
Research and development	2.21 — Research and development Research and development expenses include costs incurred by the Company, the Company’s share of costs incurred by other research and development interest groups, and costs associated with co-development contracts. Research and development expenses do not include marketing design center costs, which are accounted for as “Selling, general and administrative” in the consolidated statements of income and process engineering, pre-production or process transfer costs which are recorded as “Cost of sales” in the consolidated statements of income. Research and development costs are expensed as incurred. The amortization expense recognized on technologies and licenses purchased by the Company from third parties to facilitate the Company’s research is reported as “Research and development” in the consolidated statements of income.
Start-up and phase-out costs	2.22 — Start-up and phase-out costs Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six-months after the fabrication line’s quality qualification. The costs of phase-outs are associated with the latest stages of facilities closure when the relevant production volumes become immaterial. Start-up costs and phase-out costs are included in “Other income and expenses, net” in the consolidated statements of income.
Financial assets	2.23 — Financial assets The Company did not hold at December 31, 2017 and 2016 any financial assets classified as held-to-maturity or financial assets for which the Company would have elected to apply the fair value option. Consequently, the Company classified its financial assets in the following categories: trading and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Purchases and sales of financial assets are recognized on the trade date – the date on which the Company commits to purchase or sell the asset. Financial assets classified as available-for-sale and as trading are initially recognized and subsequently carried at fair value. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership; the relevant gain (loss) is reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The basis on which the cost of a security sold and the amount reclassified out of accumulated other comprehensive income into earnings are determined is the specific identification method. The fair values of quoted debt and equity securities are based on current market prices. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using assumptions and estimates. In measuring fair value, the Company makes maximum use of market inputs and minimizes the use of unobservable inputs. Trading financial assets A financial asset is classified in this category if it is a security acquired principally for the purpose of selling in the short term or if it is a derivative instrument not designated as a hedge. Financial assets in this category are classified as current assets when they are expected to be realized within twelve months of the balance sheet date. Marked-to-market gains or losses arising from changes in the fair value of trading financial assets are reported in the consolidated statements of income within “Other income and expenses, net” in the period in which they arise, when the transactions for such instruments occur within the Company’s operating activities, as it is the case for trading derivatives that do not qualify as hedging instruments, as described in Note 2.24. Gains and losses arising from changes in the fair value of financial assets not related to operating activities, are presented in the consolidated statements of income as a non-operating element within “Gain (loss) on financial instruments, net” in the period in which they arise. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified as held-for-trading. They are included in current assets when they represent investments of funds available for current operations or when management intends to dispose of the securities within twelve months of the balance sheet date. Changes in fair value, including declines determined to be temporary, of securities classified as available-for-sale are recognized as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income. The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets classified as available-for-sale is impaired. When equity securities classified as available-for-sale are determined to be other-than-temporarily impaired, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element as “Gain (loss) on financial instruments, net” on the consolidated statements of income. For debt securities, if a credit loss exists, but the Company does not intend to sell the impaired security and is not more likely than not to be required to sell before recovery, the impairment is separated into the estimated amount relating to credit loss, and the amount relating to all other factors of declines in fair value. Only the estimated credit loss amount is recognized immediately in earnings, with the remainder of the loss amount recognized in “Accumulated other comprehensive income (loss)” in the consolidated balance sheets. Impairment losses recognized in the consolidated statements of income are not reversed through earnings. When securities classified as available-for-sale are sold, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings is determined based on the specific identification of the securities sold.
Derivative financial instruments and hedging activities	2.24 — Derivative financial instruments and hedging activities Derivative financial instruments are initially recognized on the date a derivative contract is entered into and are subsequently measured at fair value. The method of recognizing the gain or loss resulting from the derivative instrument depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the hedge transaction. The Company has designated certain derivatives as hedges of a particular risk associated with a highly probable forecasted transaction (cash flow hedge). The Company documents, at inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Derivative instruments that are not designated as hedges are classified as trading financial assets, as described in Note 2.23. Derivative financial instruments classified as trading The Company conducts its business on a global basis in various major international currencies. As a result, the Company is exposed to adverse movements in foreign currency exchange rates. The Company enters into foreign currency forward contracts and currency options to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies at the Company’s subsidiaries. These instruments do not qualify as hedging instruments, and are marked-to-market at each period-end with the associated changes in fair value recognized in “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.23. Cash Flow Hedge As part of its ongoing operating, investing and financing activities, the Company enters into certain derivative transactions that may be designated and may qualify as hedging instruments. To reduce its exposure to U.S. dollar exchange rate fluctuations, the Company hedges certain Euro-denominated forecasted transactions that cover at the reporting date a large part of its research and development, and selling, general and administrative expenses as well as a portion of its front-end manufacturing costs of semi-finished goods within cost of sales through the use of currency forward contracts and currency options, including collars. The Company also hedges through the use of currency forward contracts certain Singapore dollar-denominated manufacturing forecasted transactions. The derivative instruments are designated and qualify for cash flow hedge at inception of the contract and on an ongoing basis over the duration of the hedge relationship. They are reflected at their fair value as “Other current assets” or “Other payables and accrued liabilities” in the consolidated balance sheets. The criteria for designating a derivative as a hedge include the instrument’s effectiveness in risk reduction and a one-to-one matching of the derivative instrument to its underlying transaction with the critical terms of the hedging instrument matching the terms of the hedged forecasted transaction. This enables the Company to conclude that changes in cash flows attributable to the risk being hedged are expected to be completely offset by the hedging instruments. For derivative instruments designated as cash flow hedge, the change in fair value for the effective portion of the hedge is reported as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income and is reclassified into earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line as the hedged transaction. For these derivatives, ineffectiveness appears if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transaction. Effectiveness on transactions hedged through purchased options is measured on the full fair value of the option, including time value. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was reported in “Accumulated other comprehensive income (loss)” in the consolidated statements of equity is immediately transferred to the consolidated statements of income within “Other income and expenses, net” if the de-designated derivative relates to operating activities. If upon de-designation, the derivative instrument is held in view to be sold with no direct relation with current operating activities, changes in the fair value of the derivative instrument following de-designation are reported as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. If the derivative is still related to operating activities, the changes in fair value subsequent to the discontinuance is reported within “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.23.
Recent accounting pronouncements	2.25 — Recent accounting pronouncements (a) Accounting pronouncements adopted in 2017 The Company adopted on January 1, 2017 the simplified presentation guidance on the balance sheet classification of deferred taxes. The new guidance requires that deferred tax assets and liabilities be classified as non-current elements in a classified balance sheet. Former guidance requires an entity to separate deferred income tax assets and liabilities into current and non-current amounts. The new guidance does not change current practice for offsetting and presenting as a single amount deferred tax assets and liabilities of a tax-paying component of an entity. The Company adopted the new guidance retrospectively and changed the presentation of deferred tax assets and liabilities accordingly for the consolidated balance sheet as at December 31, 2016. Upon adoption, the Company reclassified $95 million from the line “Deferred tax assets” of total current assets and $4 million from the line “Long-term deferred tax liabilities” to the line “Non-current deferred tax assets” on the consolidated balance sheet as at December 31, 2016. The Company adopted on January 1, 2017 the new guidance on employee share-based payment accounting. The guidance includes multiple provisions intended to simplify accounting, which impacts income tax accounting, earnings per share, estimates relating to forfeitures and the statement of cash flows. The Company has elected to continue to use assumptions to estimate forfeitures. The recognition of all excess tax benefits and tax deficiencies as income tax expense, the simplification of the calculation of diluted EPS and the presentation of excess tax benefits as operating activities were applied prospectively and had no significant impact on the Company’s consolidated financial statements. The elimination of the requirement that excess tax benefits be realized before they can be recognized and the presentation of employee taxes paid as financing activities were applied retrospectively, with no significant impact on the Company’s consolidated financial statements. Upon adoption, the Company reclassified $3 million and $4 million cash outflows from the line “Other assets and liabilities, net” of Net cash from operating activities to the line “Payment of withholding tax on vested shares” of Net cash used in financing activities in the consolidated statements of cash flows for the year ended December 31, 2016 and 2015 respectively. The Company adopted on January 1, 2017 the simplified guidance on subsequent measurement of inventory. The new guidance requires inventory to be measured at the lower of cost and net realizable value, instead of at the lower of cost and market in previous guidance. Net realizable value, which is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation, was one of the three measures to be calculated in previous guidance to be compared to cost. The new guidance changes neither the calculation of net realizable value nor the way inventory cost is measured. The simplified guidance was applied prospectively and has had no impact on the Company’s subsequent measurement of inventory. The Company early adopted in 2017 the amended guidance on the definition of a business, with no significant impact on the Company’s consolidated financial statements. In the revised guidance, an acquisition, to be considered as a business, has to include an input and a substantive process that together significantly contribute to the ability to create outputs. Businesses without outputs need to have an organized workforce to qualify as a business. Additionally, the amended guidance narrows the term “outputs”. (b) Accounting pronouncements expected to impact the Company’s operations that are not yet effective and have not been adopted early by the Company In May 2014, the FASB issued the converged guidance on revenue from contracts with customers, updated with finalized amendments addressing implementation issues. The new guidance sets forth a single revenue accounting model, which calls for more professional judgment and includes expanded disclosures. Revenue recognition depicts the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled for these goods and services. Revenue is recognized when (or as) control of the goods and services is transferred to the customer. Even if the revenue recognition guidance is not a five-step model, the following steps can be identified in order to apply the new revenue accounting model: (i) identification of the contracts with customers; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to performance obligations; and (v) revenue recognition for each performance obligation. The new guidance will be effective for the Company’s first interim period within the annual reporting period beginning on January 1, 2018. The Company is adopting the new guidance using the modified retrospective method, as allowed, which would result in recognizing the cumulative effect of initially applying the new guidance to arrangements with customers existing as of January 1, 2018 as an adjustment to retained earnings at the date of initial application. Under this approach, prior financial information will not be restated. In the scope of work to implement the recognition and disclosure requirements of the new guidance, the Company included the following main areas: (i) assessment of changes in the timing of revenue recognition, if any; (ii) inclusion of variable consideration in the transaction price; and (iii) allocation of the transaction price based on relative standalone selling prices. The Company assessed the anticipated impact of the amended standard on existing revenue streams, contracts, transactions, and business practices. Based on procedures performed, the Company is in a position to anticipate substantially similar performance conditions under the amended guidance. As such the new accounting guidance will have no material impact on the Company’s revenue recognition practices, on its consolidated financial position and results of operations. In January 2016, the FASB issued new guidance on the recognition and measurement of financial instruments. Changes to current practice primarily affect the accounting for investments in equity securities, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance relating to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. All equity investments in unconsolidated entities other than those accounted for using the equity method of accounting will generally be measured at fair value through earnings (the available-for-sale classification disappears for these financial assets). For equity investments without readily determinable fair values, the cost method is also eliminated. Additionally, when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company will adopt the new guidance when it becomes effective on January 1, 2018, which will not result in an impact on financial liabilities since the fair value option has not been elected on any existing debt. Concerning financial assets, the new guidance on equity investments without readily determinable fair values will impact the cost-method investment portfolio of the Company, which amounts to $12 million as at December 31, 2017. The Company will elect the measurement alternative, permitted on an investment by investment basis, consisting in reporting these investments at cost, less impairment, adjusted for subsequent observable price changes. In February 2016, the FASB issued new guidance on lease accounting. As a lessee, an entity will need to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability. Additionally, when applying the new guidance, lessees will have to identify leases embedded in a contract. For income statement purposes, the new guidance is still based on a dual model, requiring leases to be classified as either operating or finance leases. Classification criteria are largely similar to current lease accounting guidance, except that the new guidance does not contain explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition guidance. Existing sale-leaseback guidance has been replaced with a new model applicable to both lessees and lessors. The new guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company will adopt the new guidance when effective under the required modified retrospective method, which requires recognition and measurement of leases at the beginning of the earliest period presented, with certain practical expedients available. The Company is in the early stages of its implementation process and is currently assessing its impact on its consolidated financial statements. In June 2016, the FASB issued new guidance on measuring credit losses for financial instruments. The objective of the new guidance is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, primarily financial assets measured at amortized cost and available-for-sale debt securities, and other commitments to extend credit held by a reporting entity at each reporting date. The amended guidance replaces the incurred loss impairment methodology applied in current practice with an approach that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit losses estimates. The new guidance is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those years. The Company will adopt the new guidance when effective and is currently assessing its impact on its consolidated financial statements. In August and November 2016, the FASB issued amended guidance on clarifying the cash flow classification of certain topics in order to avoid diversity in practice. The issues addressed in August 2016 are debt prepayment or debt extinguishment costs (Issue 1); settlement of zero-coupon debt instruments (Issue 2); contingent consideration payments made after a business combination (Issue 3); proceeds from the settlement of insurance claims (Issue 4); proceeds from settlement of corporate-owned life insurance (COLI) policies, including bank-owned life insurance (BOLI) policies (Issue 5); distributions received from equity method investments (Issue 6); beneficial interests in securitization transactions (Issue 7) and separately identifiable cash flows and application of the predominance principle (Issue 8). The new guidance issued in November 2016 addressed the presentation of restricted cash in the cash flow statement, by requiring that the financial statement explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, with a mandatory reconciliation of this total to amounts on the balance sheet and disclosure about the nature of the restrictions. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those years, with early adoption permitted. The Company will adopt the new guidance when effective. The Company has assessed the impact those amendments may have on its consolidated statement of cash flows, which are primarily related to Issues 2, 3 and 6 and restricted cash and does not expect any significant impact of the new guidance on its consolidated statement of cash flows. In January 2017, the FASB simplified the accounting for goodwill impairment by removing step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The amended guidance is effective for public companies for annual and interim periods in fiscal years beginning after December 15, 2019, with early application permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company will adopt the new guidance when effective. In March 2017, the FASB issued new guidance about the presentation of net periodic benefit cost in the consolidated statement of income. The service cost component of net periodic benefit cost will be presented in the same income statement line items as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of the net periodic benefit cost will be presented separately from the line items that include the service cost and outside of any subtotal of operating income. These components will not be eligible for capitalization in assets. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, with early application permitted only starting January 1, 2017. The new guidance must be applied retrospectively, except for the limitation on the capitalization in assets, which will be applied prospectively. The Company will adopt the new guidance when it becomes effective on January 1, 2018 and it has assessed the impact of retrospective application. Upon adoption, the Company will reclassify a $12 million charge and a $14 million charge from operating income to a separate line of the consolidated statement of income for the years ended December 31, 2017 and December 31, 2016, respectively, to report all components of the net period benefit cost, except service cost, as non-operating elements. In August 2017, the FASB issued its expected improvements to hedge accounting. The changes to existing guidance are intended to align hedge accounting with companies’ risk management strategies by simplifying the application of hedge accounting and enlarging the scope and results of hedging programs. The amendments to the existing guidance include designation of hedged items, effectiveness measurement, presentation and disclosure. The amended guidance is effective for public companies for fiscal years beginning after December 15, 2018, with early application permitted in any interim period after issuance of the amended guidance. The Company is currently assessing the impact the improvements to hedge accounting may have on its consolidated financial statements and does not expect the new guidance to have a significant effect on its financial position and results of operations.

Accounting Policies (Tables)

Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule of Property, Plant and Equipment Useful Lives	Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: Buildings 33 years Facilities and leasehold improvements 5-10 years Machinery and equipment 3-10 years Computer and R&D equipment 3-6 years Other 2-5 years

Marketable Securities (Tables)

Marketable Securities (Tables)	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Changes in Value of Marketable Securities Reported in Current Assets on Consolidated Balance Sheets	Changes in the value of marketable securities, as reported in current assets on the consolidated balance sheets as at December 31, 2017 and December 31, 2016 are detailed in the tables below: December 31, Purchase Sale Change in Change in December 31, U.S. Treasury debt securities 335 99 — (3 ) — 431 Total 335 99 — (3 ) — 431 * Other Comprehensive Income December 31, Purchase Sale Change in Change in December 31, U.S. Treasury debt securities 335 — — — — 335 Total 335 — — — — 335 * Other Comprehensive Income

Trade Accounts Receivable, Net

Trade Accounts Receivable, Net (Tables)	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Trade Accounts Receivable, Net	Trade accounts receivable, net consisted of the following: December 31, December 31, Trade accounts receivable 1,164 951 Allowance for doubtful accounts (15 ) (12 ) Total 1,149 939

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories, Net of Reserve	Inventories, net of reserve, consisted of the following: December 31, December 31, Raw materials 125 81 Work-in-process 787 756 Finished products 423 336 Total 1,335 1,173

Other Current Assets (Tables)

Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other current assets consisted of the following: December 31, 2017 December 31, 2016 Receivables from government agencies 161 150 Taxes and other government receivables 94 39 Advances 35 28 Prepayments 39 47 Loans and deposits 8 9 Interest receivable 6 4 Derivative instruments 41 2 Other current assets 41 32 Total 425 311

Business Combination (Tables)

Business Combination (Tables)	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Schedule of Fair Value of Identifiable Assets and Assumed Liabilities	The fair value of the identifiable assets and assumed liabilities acquired from ams at acquisition date were as follows: Fair value recognized Property, plant and equipment 2 Technology 6 In-process R&D 40 Goodwill 42 Total net assets at fair value 90 Purchase consideration 90

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Carrying Amount of Goodwill	Goodwill allocated to reportable segments as of December 31, 2017 and 2016 and changes in the carrying amount of goodwill during the years ended December 31, 2017 and 2016 are as follows: Automotive Microcontrollers Analog, Others Total December 31, 2015 — 74 2 — 76 Business combination — 42 — — 42 Foreign currency translation — (2 ) — — (2 ) December 31, 2016 — 114 2 — 116 Foreign currency translation — 7 — — 7 December 31, 2017 — 121 2 — 123

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other intangible assets consisted of the following: December 31, 2017 Gross Cost Accumulated Net Cost Technologies & licences 668 (566 ) 102 Contractual customer relationships 5 (5 ) — Purchased & internally developed software 440 (383 ) 57 Construction in progress 50 — 50 Other intangible assets 65 (65 ) — Total 1,228 (1,019 ) 209 December 31, 2016 Gross Cost Accumulated Net Cost Technologies & licences 618 (534 ) 84 Contractual customer relationships 4 (4 ) — Purchased & internally developed software 407 (347 ) 60 Construction in progress 51 — 51 Other intangible assets 65 (65 ) — Total 1,145 (950 ) 195
Estimated Amortization Expense of Existing Intangible Assets	The estimated amortization expense of the existing intangible assets for the following years is: Year 2018 75 2019 58 2020 41 2021 22 2022 10 Thereafter 3 Total 209

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consisted of the following: December 31, 2017 Gross Accumulated Net Land 81 — 81 Buildings 891 (479 ) 412 Facilities & leasehold improvements 3,074 (2,782 ) 292 Machinery and equipment 14,529 (12,569 ) 1,960 Computer and R&D equipment 397 (351 ) 46 Other tangible assets 118 (99 ) 19 Construction in progress 284 — 284 Total 19,374 (16,280 ) 3,094 December 31, 2016 Gross Accumulated Net Land 73 — 73 Buildings 788 (412 ) 376 Facilities & leasehold improvements 2,713 (2,474 ) 239 Machinery and equipment 12,808 (11,415 ) 1,393 Computer and R&D equipment 362 (324 ) 38 Other tangible assets 105 (96 ) 9 Construction in progress 159 — 159 Total 17,008 (14,721 ) 2,287

Long-Term Investments (Tables)

Long-Term Investments (Tables)	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Long-Term Investments	December 31, December 31, Equity-method investments 45 45 Cost-method investments 12 12 Total 57 57
Schedule of Equity-method Investments	Equity-method investments as at December 31, 2017 and December 31, 2016 were as follows: December 31, 2017 December 31, 2016 Carrying Ownership Carrying Ownership ST-Ericsson SA, in liquidation 45 50.0 % 45 50.0 % Total 45 45

Other Non-Current Assets (Table

Other Non-Current Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Investments, All Other Investments [Abstract]
Other Non-Current Assets	Other non-current assets consisted of the following: December 31, December 31, Available-for-sale equity securities 11 11 Trading equity securities 9 8 Long-term State receivables 417 388 Long-term receivables from third parties 1 1 Prepaid for pension 1 — Deposits and other non-current assets 36 26 Total 475 434

Other Payables and Accrued Li48

Other Payables and Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Payables and Accruals [Abstract]
Other Payables and Accrued Liabilities	Other payables and accrued liabilities consisted of the following: December 31, 2017 December 31, 2016 Employee related liabilities 390 297 Employee compensated absences 141 111 Taxes other than income taxes 65 58 Advances 89 39 Payables to equity-method investments 49 49 Derivative instruments 1 44 Provision for restructuring 46 49 Defined benefit plans — current portion 9 9 Defined contribution plans — accrued benefits Royalties 19 23 16 20 Others 65 58 Total 897 750

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-term debt consisted of the following: December 31, December 31, Funding program loans from European Investment Bank: 2.56% due 2020, floating interest rate at Libor + 1.199% 38 50 2.56% due 2020, floating interest rate at Libor + 1.056% 83 110 0.59% due 2020, floating interest rate at Euribor + 0.917% 45 53 2.09% due 2021, floating interest rate at Libor + 0.525% 120 150 2.22% due 2021, floating interest rate at Libor + 0.572% 115 144 Dual tranche senior unsecured convertible bonds Zero-coupon, due 2019 (Tranche A) — 564 1.0% due 2021 (Tranche B) — 362 Zero-coupon, due 2022 (Tranche A) 662 — 0.25% due 2024 (Tranche B) 616 — Other funding program loans: 0.31% (weighted average), due 2018-2023, fixed interest rate 20 14 Other long-term loans: 1.95% (weighted average), due 2017, fixed interest rate — 1 0.41% (weighted average), due 2018, fixed interest rate 1 1 0.87% (weighted average), due 2020, fixed interest rate 1 2 Total long-term debt 1,701 1,451 Less current portion (118 ) (117 ) Total long-term debt, less current portion 1,583 1,334
Long-Term Debt Denominated by Currencies	Long-term debt is denominated in the following currencies: December 31, 2017 December 31, 2016 U.S. dollar 1,634 1,380 Euro 67 71 Total 1,701 1,451
Total Long-Term Debt Outstanding Maturities	Aggregate future maturities of total long-term debt (including current portion) at redemption value are as follows: December 31, 2018 118 2019 118 2020 118 2021 62 2022 753 Thereafter 753 Total 1,922

Post-Employment and Other Lon50

Post-Employment and Other Long-Term Employees Benefits (Tables)	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
Changes in Benefit Obligation and Plan Assets	The changes in benefit obligation and plan assets were as follows: Pension Benefits Other Long-Term Benefits December 31, December 31, December 31, December 31, Change in benefit obligation: Benefit obligation at beginning of year 825 816 52 54 Service cost 27 27 3 3 Interest cost 23 25 2 2 Employee contributions 4 7 — — Benefits paid (16 ) (27 ) (2 ) (5 ) Effect of curtailment — (6 ) — (1 ) Effect of settlement (10 ) (10 ) — — Actuarial (gain) loss 25 36 3 — Foreign currency translation adjustment 58 (43 ) 7 (1 ) Benefit obligation at end of year 936 825 65 52 Change in plan assets: Plan assets at fair value at beginning of year 477 473 — — Actual return on plan assets 40 31 — — Employer contributions 27 27 — — Employee contributions 4 7 — — Benefits paid (7 ) (18 ) — — Effect of settlement (10 ) (10 ) — — Foreign currency translation adjustments 21 (33 ) — — Plan assets at fair value at end of year 552 477 — — Funded status (384 ) (348 ) (65 ) (52 ) Net amount recognized in the balance sheet consisted of the following: Pension Benefits Other Long-Term Benefits December 31, December 31, December 31, December 31, Non-current assets 1 — — — Current liabilities (9 ) (9 ) (4 ) (3 ) Long-term liabilities (376 ) (339 ) (61 ) (49 ) Net amount recognized (384 ) (348 ) (65 ) (52 )
Accumulated Other Comprehensive Income (Loss) Before Tax Effects	The components of accumulated other comprehensive income (loss) before tax effects were as follows: Actuarial Prior service Total Other comprehensive loss as at December 31, 2015 137 3 140 Net amount generated/arising in current year 25 — 25 Amortization (14 ) (1 ) (15 ) Foreign currency translation adjustment (9 ) — (9 ) Other comprehensive loss as at December 31, 2016 139 2 141 Net amount generated/arising in current year 6 — 6 Amortization (10 ) — (10 ) Foreign currency translation adjustment 9 — 9 Other comprehensive loss as at December 31, 2017 144 2 146
Schedule of Accumulated Benefit Obligations	The accumulated benefit obligations were as follows: Pension Benefits Other Long-Term Benefits December 31, December 31, December 31, December 31, Accumulated benefit obligations 828 762 53 41
Components of Net Periodic Benefit Cost	The components of the net periodic benefit cost included the following: Pension Benefits Other Long-term Benefits Year ended Year ended Year ended Year ended Year ended Year ended Service cost 27 27 28 3 3 5 Interest cost 23 25 25 2 2 2 Expected return on plan assets (21 ) (20 ) (22 ) — — — Amortization of actuarial net loss (gain) 9 8 7 3 — — Amortization of prior service cost — 1 1 — — — Effect of settlement 1 — 1 — — — Effect of curtailment — — — — (1 ) (1 ) Net periodic benefit cost 39 41 40 8 4 6
Weighted Average Assumptions Used in Determination of Benefit Obligation and Plan Assets	The weighted average assumptions used in the determination of the benefit obligation and the plan assets for the pension plans and the other long-term benefits were as follows: Assumptions 2017 2016 Discount rate 2.54 % 2.57 % Salary increase rate 2.37 % 2.74 % Expected long-term rate of return on funds for the pension expense of the following year 4.23 % 4.24 % The weighted average assumptions used in the determination of the net periodic benefit cost for the pension plans and the other long-term benefits were as follows: Assumptions 2017 2016 2015 Discount rate 2.57 % 3.19 % 3.03 % Salary increase rate 2.74 % 3.07 % 2.65 % Expected long-term rate of return on funds for the pension expense of the year 4.24 % 4.44 % 4.76 %
Pension Plan Asset Allocation	The Company’s pension plan asset allocation at December 31, 2017 and at December 31, 2016 is as follows: Percentage of Plan Assets at December Asset Category 2017 2016 Cash and cash equivalents 3 % 2 % Equity securities 30 % 29 % Government debt securities 3 % 3 % Corporate debt securities 26 % 26 % Investments in funds (a) 17 % 18 % Real estate 2 % 2 % Other (mainly insurance assets — contracts and reserves) 19 % 20 % Total 100 % 100 % (a) Investment in funds are composed approximately of one half in commingled funds mainly invested in corporate bonds (55%) and treasury bonds and notes (45%) and for the other half in multi-strategy funds invested in broadly diversified portfolios of corporate and government bonds, equity and derivative instruments.
Pension Plan Asset Allocation Including Fair-Value Measurements	The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2017 is as follows: Total Quoted Prices in Significant Other Significant Cash and cash equivalents 14 14 — — Equity securities 167 8 159 — Government debt securities 18 17 1 — Corporate debt securities 141 5 136 — Investment funds 93 2 91 — Real estate 12 — 12 — Other (mainly insurance assets — contracts and reserves) 107 — — 107 TOTAL 552 46 399 107 The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2016 is as follows: Total Quoted Prices in Significant Other Significant Cash and cash equivalents 11 11 — — Equity securities 137 6 131 — Government debt securities 13 12 1 — Corporate debt securities 125 4 121 — Investment funds 84 6 78 — Real estate 12 — 11 1 Other (mainly insurance assets — contracts and reserves) 95 — — 95 TOTAL 477 39 342 96
Reconciliation for Plan Assets Measured at Fair Value Using Unobservable Inputs (Level 3)	For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2017 and December 31, 2017 is presented as follows: Fair Value Measurements January 1, 2017 96 Contributions (employer and employee) 12 Actual return on plan assets (2 ) Net benefit payments (b) 4 Settlements (8 ) Foreign currency translation adjustment 5 December 31, 2017 107 (b) Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees. For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2016 and December 31, 2016 is presented as follows: Fair Value Measurements January 1, 2016 102 Contributions (employer and employee) 16 Actual return on plan assets (3 ) Net benefit payments (b) (6 ) Settlements (10 ) Foreign currency translation adjustment (3 ) December 31, 2016 96 (b) Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees.
Estimated Future Benefit Payments	The Company’s estimated future benefit payments as of December 31, 2017 are as follows: Years Pension Other Long-term 2018 32 4 2019 31 5 2020 26 8 2021 36 3 2022 35 4 From 2023 to 2026 264 30

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2017
Classification of Pre-Payroll Tax and Social Contribution Stock-Based Compensation Expense Included in Consolidated Statements of Income	The following table illustrates the classification of pre-payroll tax and social contribution stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2017, December 31, 2016 and December 31, 2015: December 31, December 31, December 31, Cost of sales 12 7 7 Selling, general and administrative 31 17 17 Research and development 18 14 14 Total pre-payroll tax and social contribution compensation 61 38 38
Changes in AOCI Attributable to Stockholders	The table below details the changes in AOCI attributable to the company’s stockholders by component, net of tax, for the years ended December 31, 2017, 2016 and 2015: Gains (Losses) Gains (Losses) Defined Benefit Foreign Currency Total December 31, 2014 (76 ) 2 (170 ) 813 569 Cumulative tax impact — — 44 — 44 December 31, 2014, net of tax (76 ) 2 (126 ) 813 613 OCI before reclassifications (117 ) — (2 ) (202 ) (321 ) Amounts reclassified from AOCI 170 — 12 (10 ) 172 OCI for the year ended December 31, 2015 53 — 10 (212 ) (149 ) Cumulative tax impact — — (4 ) — (4 ) OCI for the year ended December 31, 2015, net of tax 53 — 6 (212 ) (153 ) December 31, 2015 (23 ) 2 (160 ) 601 420 Cumulative tax impact — — 40 — 40 December 31, 2015, net of tax (23 ) 2 (120 ) 601 460 OCI before reclassifications (33 ) — (25 ) (57 ) (115 ) Amounts reclassified from AOCI 9 — 15 — 24 OCI for the year ended December 31, 2016 (24 ) — (10 ) (57 ) (91 ) Cumulative tax impact — — 2 — 2 OCI for the year ended December 31, 2016, net of tax (24 ) — (8 ) (57 ) (89 ) December 31, 2016 (47 ) 2 (170 ) 544 329 Cumulative tax impact — — 42 — 42 December 31, 2016, net of tax (47 ) 2 (128 ) 544 371 OCI before reclassifications 122 (2 ) (6 ) 224 338 Amounts reclassified from AOCI (30 ) — 10 — (20 ) OCI for the year ended December 31, 2017 92 (2 ) 4 224 318 Cumulative tax impact — — (1 ) — (1 ) OCI for the year ended December 31, 2017, net of tax 92 (2 ) 3 224 317 December 31, 2017 45 — (166 ) 768 647 Cumulative tax impact — — 41 — 41 December 31, 2017, net of tax 45 — (125 ) 768 688
Schedule of Items Reclassified Out of Accumulated Other Comprehensive Income	Items reclassified out of Accumulated Other Comprehensive Income for the years ended December 31, 2017, 2016 and 2015 are listed in the table below: Details about AOCI components Amounts Amounts Amounts Affected line item in the statement where Gains (Losses) on Cash Flow Hedges Foreign exchange derivative contracts 16 (7 ) (105 ) Cost of sales Foreign exchange derivative contracts 3 — (14 ) Selling, general and administrative Foreign exchange derivative contracts 11 (2 ) (51 ) Research and development — — — Income tax benefit (expense) 30 (9 ) (170 ) Net of tax Defined Benefit Pension Plan Items Amortization of actuarial gains (losses) (1 ) (1 ) — Cost of sales Amortization of actuarial gains (losses) (4 ) (8 ) (5 ) Selling, general and administrative Amortization of actuarial gains (losses) (5 ) (6 ) (6 ) Research and development Amortization of prior service cost — — (1 ) Research and development 2 4 4 Income tax benefit (expense) (8 ) (11 ) (8 ) Net of tax Foreign currency translation adjustment Realized gain on disposal of investments — — 10 Income (loss) on equity-method investments — — — Income tax benefit (expense) — — 10 Net of tax Total reclassifications for the year 22 (20 ) (168 ) Attributable to noncontrolling interest — — — Attributable to the Company’s stockholders 22 (20 ) (168 )
Supervisory Board [Member]
Summary of Grants Under Outstanding Stock Award Plans	The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: Year of grant Options granted Options waived 2005 66,000 (15,000 ) 2006 66,000 (15,000 ) 2007 165,000 (22,500 ) 2008 165,000 (22,500 ) 2009 165,000 (7,500 ) 2010 172,500 (7,500 ) 2011 172,500 (30,000 ) 2012 180,000 (22,500 ) 2013 No options granted 2014 No options granted 2015 No options granted 2016 No options granted 2017 No options granted
Summary of Nonvested Share Activity	A summary of the options’ activity by plan for the years ended December 31, 2017 and December 31, 2016 is presented below: Year of grant Outstanding Exercised Expired / Outstanding Exercised Expired / Outstanding 2006 3,000 (3,000 ) — — — — — 2007 19,500 (12,000 ) — 7,500 (7,500 ) — — 2008 39,000 (15,000 ) — 24,000 (7,500 ) — 16,500 2009 45,000 (10,000 ) — 35,000 (12,500 ) — 22,500 2010 45,000 — — 45,000 (15,000 ) — 30,000 2011 82,500 (15,000 ) — 67,500 (15,000 ) — 52,500 2012 95,000 (7,500 ) — 87,500 (22,500 ) — 65,000
Employees [Member]
Summary of Grants Under Outstanding Stock Award Plans	The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee: Date of grant Plan name Number of Number of Number of shares July 22, 2013 2013 CEO Special Bonus 63,848 — — July 22, 2014 2014 CEO Special Bonus 34,483 — — July 22, 2014 2014 Employee Plan 6,458,435 — (1,939,222 ) December 18, 2014 2014 Employee Plan 500,775 — (31,332 ) March 24, 2015 2015 CEO Special Bonus 53,369 — — July 27, 2015 2015 Employee Plan 6,591,200 — (1,961,886 ) December 15, 2015 2015 Employee Plan 370,920 — (29,078 ) April 26, 2016 2016 CEO Special Bonus 69,165 — — July 26, 2016 2016 Employee Plan 6,621,100 — (1,628,376 ) December 19, 2016 2016 Employee Plan 376,800 — (53,900 ) July 25, 2017 2017 Employee Plan 7,634,475 — ( *) December 22, 2017 2017 Employee Plan 347,160 — ( *) (*) As at December 31, 2017, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board.
Summary of Nonvested Share Activity	A summary of the unvested share activity by plan for the year ended December 31, 2017 is presented below: Unvested Shares Unvested as at Granted Forfeited / Cancelled on Vested Unvested as at 2013 CEO Special Bonus 7,095 — — — (7,095 ) — 2014 CEO Special Bonus 11,495 — — — (11,495 ) — 2014 Employee Plan 1,611,453 — (7,253 ) — (1,604,200 ) — 2015 CEO Special Bonus 35,579 — — — (17,790 ) 17,789 2015 Employee Plan 3,170,739 — (24,694 ) — (1,515,261 ) 1,630,784 2016 CEO Special Bonus — 69,165 — — (23,055 ) 46,110 2016 Employee Plan 6,974,420 — (62,179 ) (1,682,276 ) (1,717,119 ) 3,512,846 2017 Employee Plan — 7,981,635 (32,175 ) — (1,950 ) 7,947,510 Total 11,810,781 8,050,800 (126,301 ) (1,682,276 ) (4,897,965 ) 13,155,039

Earnings per Share (Tables)

Earnings per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Summary of Earnings per Share ("EPS")	For the years ended December 31, 2017, 2016 and 2015, earnings per share (“EPS”) was calculated as follows: Year ended Year ended Year ended Basic EPS Net income (loss) attributable to parent company 802 165 104 Weighted average shares outstanding 884,707,764 881,246,870 876,510,959 Basic EPS 0.91 0.19 0.12 Diluted EPS Net income (loss) attributable to parent company adjusted 802 165 104 Weighted average shares outstanding 884,707,764 881,246,870 876,510,959 Dilutive effect of stock awards 7,459,507 5,003,573 4,043,813 Dilutive effect of convertible debt 13,918,602 — — Number of shares used in calculating diluted EPS 906,085,873 886,250,443 880,554,772 Diluted EPS 0.89 0.19 0.12

Other Income and Expenses, Net

Other Income and Expenses, Net (Tables)	12 Months Ended
	Dec. 31, 2017
Other Income and Expenses [Abstract]
Other Income and Expenses, Net	Other income and expenses, net consisted of the following: Year ended December 31, Year ended December 31, Year ended December 31, Research and development funding 65 94 144 Phase-out and start-up costs (8 ) (2 ) (5 ) Exchange gain, net 4 5 2 Patent costs, net of reversal of unused provisions (9 ) (5 ) 3 Gain on sale of businesses and non-current assets 4 2 18 Other, net (1 ) 5 2 Total 55 99 164

Impairment, Restructuring Cha54

Impairment, Restructuring Charges and Other Related Closure Costs (Tables)	12 Months Ended
	Dec. 31, 2017
Restructuring and Related Activities [Abstract]
Summary of Impairment, Restructuring Charges and Other Related Closure Costs	Impairment, restructuring charges and other related closure costs incurred in 2017, 2016 and 2015 are summarized as follows: Year ended December 31, 2017 Impairment Restructuring Other related Total impairment, Set-top Box restructuring plan — (34 ) — (34 ) EPS restructuring plan — 5 — 5 $600-650 million net opex plan — — (3 ) (3 ) Other restructuring initiatives — (13 ) — (13 ) Total — (42 ) (3 ) (45 ) Year ended December 31, 2016 Impairment Restructuring Other related Total impairment, Set-top Box restructuring plan — (74 ) (9 ) (83 ) EPS restructuring plan — (1 ) — (1 ) $600-650 million net opex plan — — (1 ) (1 ) Long-lived asset impairment charge (8 ) — — (8 ) Total (8 ) (75 ) (10 ) (93 ) Year ended December 31, 2015 Impairment Restructuring Other related Total impairment, $600-650 million net opex plan — — (2 ) (2 ) Manufacturing consolidation — (1 ) (10 ) (11 ) EPS restructuring plan — (36 ) — (36 ) Long-lived asset impairment charge (16 ) — — (16 ) Total (16 ) (37 ) (12 ) (65 )
Changes to Restructuring Provisions Recorded on Consolidated Balance Sheets	Changes to the restructuring provisions recorded on the consolidated balance sheets from December 31, 2015 to December 31, 2017 are summarized as follows: Set-top Box $600-650 Manufacturing EPS Other Total Provision as at December 31, 2015 — 6 1 18 9 34 Charges incurred in 2016 83 1 — 1 — 85 Amounts paid (46 ) (1 ) (1 ) (10 ) (1 ) (59 ) Liability settlement — — — — (3 ) (3 ) Currency translation effect — (1 ) — (1 ) (1 ) (3 ) Provision as at December 31, 2016 37 5 — 8 4 54 Charges incurred in 2017 36 3 — — 13 52 Adjustment for unused provisions (2 ) — — (5 ) — (7 ) Amounts paid (36 ) (1 ) — — (14 ) (51 ) Currency translation effect 4 — — — — 4 Provision as at December 31, 2017 39 7 — 3 3 52

Interest Expense, Net (Tables)

Interest Expense, Net (Tables)	12 Months Ended
	Dec. 31, 2017
Banking and Thrift, Interest [Abstract]
Summary of Interest Expense, Net	Interest expense, net consisted of the following: Year ended December 31, Year ended December 31, Year ended December 31, Income 30 20 18 Expense (52 ) (40 ) (40 ) Total (22 ) (20 ) (22 )

Income Tax (Tables)

Income Tax (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income (Loss) before Income Tax	Income (loss) before income tax is comprised of the following: Year ended December 31, Year ended December 31, Year ended December 31, Income (loss) recorded in The Netherlands (17 ) (10 ) (18 ) Income (loss) from foreign operations 970 211 107 Income (loss) before income tax benefit (expense) 953 201 89
Income Tax Benefit (Expense)	Income tax benefit (expense) is comprised of the following: Year ended December 31, Year ended December 31, Year ended December 31, The Netherlands Taxes — current (1 ) (2 ) 5 Foreign taxes — current (101 ) (69 ) (43 ) Total current taxes (102 ) (71 ) (38 ) The Netherlands Taxes — deferred — — — Foreign taxes — deferred (41 ) 40 59 Total deferred taxes (41 ) 40 59 Income tax benefit (expense) (143 ) (31 ) 21 Effective tax rate 15 % 15 % -24 %
Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate	The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2017, 2016 and 2015, and the effective income tax rate are the following: Year ended December 31, Year ended December 31, Year ended December 31, Income tax benefit (expense) computed at statutory rate (238 ) (51 ) (23 ) Non-deductible and non-taxable permanent differences, net 17 5 (18 ) Income (loss) on equity-method investments — 2 — Valuation allowance adjustments 92 10 1 Effect on deferred taxes of changes in enacted tax rates (70 ) (9 ) (15 ) Current year credits 40 34 44 Other tax and credits (36 ) (25 ) 2 Benefits from tax holidays 114 49 42 Net impact of changes to uncertain tax positions (43 ) (22 ) 8 Earnings of subsidiaries taxed at different rates (19 ) (24 ) (20 ) Income tax benefit (expense) (143 ) (31 ) 21
Deferred Tax Assets and Liabilities	Deferred tax assets and liabilities consisted of the following: December 31, December 31, Tax loss carryforwards and investment credits 740 804 Less unrecognized tax benefit (235 ) (195 ) Tax loss carryforwards net of unrecognized tax benefit 505 609 Inventory valuation 35 29 Impairment and restructuring charges 16 20 Fixed asset depreciation in arrears 32 34 Increased depreciation incentives 118 — Capitalized development costs 101 91 Receivables for government funding 6 7 Tax credits granted on past capital investments 1,160 1,165 Pension service costs 65 68 Stock awards 5 — Commercial accruals 11 19 Other temporary differences 99 92 Total deferred tax assets 2,153 2,134 Valuation allowances (1,502 ) (1,577 ) Deferred tax assets, net 651 557 Accelerated fixed asset depreciation (13 ) (10 ) Acquired intangible assets (10 ) (8 ) Advances of government funding (9 ) (16 ) Other temporary differences (6 ) — Deferred tax liabilities (38 ) (34 ) Net deferred income tax asset 613 523
Gross Deferred Tax Assets on Tax Loss Carryforwards and Investment Credits Expiration	As of December 31, 2017, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2018, as follows: Year 2018 4 2019 78 2020 14 2021 3 2022 7 Thereafter 634 Total 740
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits	A reconciliation of 2017, 2016 and 2015 beginning and ending amounts of unrecognized tax benefits is as follows: December 31, December 31, December 31, Balance at beginning of year 238 226 313 Additions based on tax positions related to the current year 43 34 38 Additions for tax positions of prior years 13 1 — Reduction for tax positions of prior years (9 ) (13 ) (48 ) Settlements (2 ) — (48 ) Prepayment (4 ) — (3 ) Reductions due to lapse of statute of limitations — (4 ) (1 ) Foreign currency translation 31 (6 ) (25 ) Balance at end of year 310 238 226

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Company's Commitments	The Company’s commitments as of December 31, 2017 were as follows: In millions of U.S. dollars Total 2018 2019 2020 2021 2022 Thereafter Operating leases 227 55 40 32 21 13 66 Purchase obligations 1,423 946 232 129 116 — — of which: Equipment purchase 774 684 90 — — — — Foundry purchase 557 198 123 120 116 — — Software, design, technologies and licenses 92 64 19 9 — — — Other obligations 324 161 98 41 15 6 3 Total 1,974 1,162 370 202 152 19 69

Financial Instruments and Ris58

Financial Instruments and Risk Management (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Notional Amounts of Outstanding Derivative Instruments	As at December 31, 2017, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated and Singapore dollar-denominated forecasted transactions: In millions of Euros Notional amount for hedge on forecasted R&D and other operating expenses Notional amount for hedge on forecasted manufacturing costs Forward contracts 237 352 Currency collars 208 284 In millions of Singapore dollars Notional amount for hedge on forecasted R&D and other operating expenses Notional amount for hedge on forecasted manufacturing costs Forward contracts — 130
Fair Value of Derivative Instruments	Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2017 and December 31, 2016 is presented in the table below: As at December 31, 2017 As at December 31, 2016 Asset Derivatives Balance sheet location Fair Balance sheet location Fair Derivatives designated as a hedge: Foreign exchange forward contracts Other current assets 24 Other current assets 1 Currency collars Other current assets 13 Other current assets — Total derivatives designated as a hedge 37 1 Derivatives not designated as a hedge: Foreign exchange forward contracts Other current assets 4 Other current assets 1 Total derivatives not designated as a hedge: 4 1 Total Derivatives 41 2 As at December 31, 2017 As at December 31, 2016 Liability Derivatives Balance sheet location Fair Balance sheet location Fair Derivatives designated as a hedge: Foreign exchange forward contracts Other payables and accrued liabilities — Other payables and (31 ) Currency collars Other long-term liabilities — Other long-term (1 ) Currency collars Other payables and accrued liabilities — Other payables and (11 ) Total derivatives designated as a hedge — (43 ) Derivatives not designated as a hedge: Foreign exchange forward contracts Other payables and accrued liabilities (1 ) Other payables and (2 ) Total derivatives not designated as a hedge: (1 ) (2 ) Total Derivatives (1 ) (45 )
Effect on Consolidated Statements of Income of Derivative Instruments	The effect on the consolidated statements of income for the year ended December 31, 2017 and December 31, 2016 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the statements of equity as at December 31, 2017 and December 31, 2016 of derivative instruments designated as cash flow hedge is presented in the table below: Gain (loss) deferred in Location of gain (loss) reclassified from OCI into earnings Gain (loss) reclassified from December 31, December 31, December 31, December 31, Foreign exchange forward contracts 18 (24 ) Cost of sales 12 (5 ) Foreign exchange forward contracts 2 (2 ) Selling, general and administrative 2 — Foreign exchange forward contracts 7 (8 ) Research and development 8 (1 ) Currency collars 12 (8 ) Cost of sales 4 (2 ) Currency collars 1 (1 ) Selling, general and administrative 1 — Currency collars 5 (4 ) Research and development 3 (1 ) Total 45 (47 ) 30 (9 )
Effect on Consolidated Statements of Income of Derivative Instruments Not Designated as Hedge	The effect on the consolidated statements of income for the year ended December 31, 2017 and December 31, 2016 of derivative instruments not designated as a hedge is presented in the table below: Location of gain recognized in earnings Gain recognized in earnings December 31, December 31, Foreign exchange forward contracts Other income and expenses, net 6 (3 ) Total 6 (3 )
Schedule of Financial Assets (Liabilities) Measured at Fair Value on Recurring Basis	The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2017: Fair Value Measurements using December 31, Quoted Prices in Significant Other Significant Marketable securities — U.S. Treasury Bonds 431 431 — — Equity securities classified as available-for-sale 11 11 — — Equity securities classified as held-for-trading 9 9 — — Derivative instruments designated as cash flow hedge 37 — 37 — Derivative instruments not designated as cash flow hedge 4 — 4 — Derivative instruments not designated as cash flow hedge (1 ) — (1 ) — Contingent consideration on business combinations (12 ) — — (12 ) Total 479 451 40 (12 ) The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2016: Fair Value Measurements using December 31, Quoted Prices in Significant Other Significant Marketable securities — U.S. Treasury Bonds 335 335 — — Equity securities classified as available-for-sale 11 11 — — Equity securities classified as held-for-trading 8 8 — — Derivative instruments designated as cash flow hedge 1 — 1 — Derivative instruments designated as cash flow hedge (43 ) — (43 ) — Derivative instruments not designated as cash flow hedge 1 — 1 — Derivative instruments not designated as cash flow hedge (2 ) — (2 ) — Contingent consideration on business combinations (12 ) — — (12 ) Total 299 354 (43 ) (12 )
Schedule of Assets (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)	For assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2017 and December 31, 2017 is presented as follows: Fair Value January 1, 2017 (12 ) Contingent consideration on business combination — December 31, 2017 (12 ) Amount of total losses for the period included in earnings attributable to assets still held at the reporting date —
Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost	The following table includes additional fair value information on financial assets and liabilities as at December 31, 2017 and 2016: 2017 2016 Level Carrying Estimated Carrying Estimated Cash equivalents (1) 1 1,303 1,303 960 960 Long-term debt — Bank loans (including current portion) 2 423 423 525 525 — Senior unsecured convertible bonds (2) 1 1,278 1,860 926 1,127 (1) Cash equivalents primarily correspond to deposits at call with banks. (2) The carrying amount of the senior unsecured convertible bonds as reported above corresponds to the liability component only, since, at initial recognition, an amount of $121 million was recorded directly in shareholders’ equity as the value of the equity instrument embedded in the convertible bonds issued on July 3, 2014 and outstanding as at December 31, 2016. For the convertible bonds issued on July 3, 2017 and outstanding as at December 31, 2017, the carrying amount of the senior unsecured convertible bonds corresponds to the liability component only, since, at initial recognition, an amount of $242 million was recorded directly in shareholders’ equity as the value of the equity instrument embedded in the convertible instrument.
Summary of Securities That Were in Unrealized Loss Position	The table below details securities that were in an unrealized loss position as at December 31, 2017. The securities are segregated by investment type and length of time that the individual securities have been in a continuous unrealized position as at December 31, 2017. December 31, 2017 Less than 12 months More than 12 Total Description Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasury Bonds 332 (1 ) — — 332 (1 ) Total 332 (1 ) — — 332 (1 )

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Transactions with Significant Shareholders, their Affiliates and Other Related Parties	Transactions with significant shareholders, their affiliates and other related parties were as follows: December 31, December 31, December 31, Sales & other services — 1 7 Other purchases 12 1 65 Accounts receivable 7 7 8 Accounts payable 51 51 61

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Net Revenues by Product Segment and by Product Line	The following tables present the Company’s consolidated net revenues and consolidated operating income by reportable segment. December 31, December 31, December 31, Automotive and Discrete Group (ADG) 3,059 2,813 2,731 Analog, MEMS and Sensors Group (AMS) 2,613 1,847 1,851 Microcontrollers and Digital ICs Group (MDG) 2,646 2,285 2,292 Total net revenues of product segments 8,318 6,945 6,874 Others 29 28 23 Total consolidated net revenues 8,347 6,973 6,897
Operating Income by Reportable Segment	Operating income by reportable segment: December 31, December 31, December 31, Automotive and Discrete Group (ADG) 289 211 194 Analog, MEMS and Sensors Group (AMS) 365 46 27 Microcontrollers and Digital ICs Group (MDG) 402 108 29 Total operating income of product segments 1,056 365 250 Others (1) (63 ) (151 ) (141 ) Total consolidated operating income 993 214 109 (1) Operating results of “Others” include items such as unused capacity charges, impairment & restructuring charges and other related closure costs, phase out and start-up costs, and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of Subsystems, assembly services and other revenue.
Reconciliation of Operating Income of Segments to Total Operating Income	Reconciliation of operating income of segments to the total operating income: December 31, December 31, December 31, Total operating income of segments 1,056 365 250 Impairment, restructuring charges and other related closure costs (45 ) (93 ) (65 ) Unallocated manufacturing results 7 (33 ) (69 ) Strategic and other research and development programs and other non-allocated provisions (1) (25 ) (25 ) (7 ) Total operating loss Others (63 ) (151 ) (141 ) Total consolidated operating income 993 214 109 (1) Includes unallocated income and expenses such as certain corporate-level operating expenses and other costs/income that are not allocated to the product segments.
Net Revenues	Net revenues December 31, December 31, December 31, The Netherlands 2,223 1,751 1,667 France 123 134 169 Italy 60 58 58 USA 1,012 990 1,039 Singapore 4,444 3,699 3,606 Japan 463 323 332 Other countries 22 18 26 Total 8,347 6,973 6,897
Property, Plant & Equipment	Property, plant and equipment December 31, December 31, The Netherlands 588 462 France 603 520 Italy 719 445 Other European countries 83 84 USA 6 6 Singapore 428 277 Malaysia 200 166 Other countries 467 327 Total 3,094 2,287

Accounting Policies - Additiona

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary Of Accounting Policies [Line Items]
Cumulative probability threshold for realization of income tax benefits	50.00%
Minimum recognizable tax benefit	50.00%
Sustainability threshold for uncertain tax position	50.00%
Employees average service period to grant awards	3 years
Advertising expenses	$ 14	$ 11	$ 9
Payment of withholding tax on vested shares	9	3	$ 4
Cost method of investments	12	12
Charge from operating income	$ 12	14
Accounting Pronouncements Adopted in 2017 [Member]
Summary Of Accounting Policies [Line Items]
Deferred tax assets		95
Long-term deferred tax liabilities		$ 4
Minimum [Member]
Summary Of Accounting Policies [Line Items]
Equity investments, Ownership percentage	20.00%
Maximum [Member]
Summary Of Accounting Policies [Line Items]
Equity investments, Ownership percentage	50.00%
Trademarks and Licenses [Member] | Minimum [Member]
Summary Of Accounting Policies [Line Items]
Estimated useful lives of intangible assets	3 years
Trademarks and Licenses [Member] | Maximum [Member]
Summary Of Accounting Policies [Line Items]
Estimated useful lives of intangible assets	7 years
Purchased and Internally Developed Software [Member] | Maximum [Member]
Summary Of Accounting Policies [Line Items]
Estimated useful lives of intangible assets	4 years

Accounting Policies - Schedule

Accounting Policies - Schedule of Property, Plant and Equipment Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2017
Buildings [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	33 years
Facilities and Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	5 years
Facilities and Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	10 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	3 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	10 years
Computer and R&D Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	3 years
Computer and R&D Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	6 years
Other [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	2 years
Other [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	5 years

Marketable Securities - Changes

Marketable Securities - Changes in Value of Marketable Securities Reported in Current Assets on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance	$ 335	$ 335
Purchase	99
Sale	0	0
Change in fair value included in OCI	(3)
Change in fair value recognized in earnings	0	0
Ending Balance	431	335
U.S. Treasury Bonds/Bills [Member]
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance	335	335
Purchase	99
Sale	0	0
Change in fair value included in OCI	(3)
Change in fair value recognized in earnings	0	0
Ending Balance	$ 431	$ 335

Marketable Securities - Additio

Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Marketable securities	$ 431	$ 335	$ 335
Payment for purchase of marketable securities	99
U.S. Treasury Bonds/Bills [Member]
Financing Receivable, Recorded Investment [Line Items]
Marketable securities	431	$ 335	$ 335
Payment for purchase of marketable securities	$ 99
Weighted average maturity period	1 year 10 months 25 days
Aggregate amortized cost basis of securities	$ 432

Trade Accounts Receivable, Ne65

Trade Accounts Receivable, Net - Trade Accounts Receivable, Net (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade accounts receivable	$ 1,164	$ 951
Allowance for doubtful accounts	(15)	(12)
Total	$ 1,149	$ 939

Trade Accounts Receivable, Ne66

Trade Accounts Receivable, Net - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017USD ($)Customer	Dec. 31, 2016USD ($)Customer	Dec. 31, 2015USD ($)Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable, bad debt expense	$ 0	$ 3,000,000	$ 2,000,000
Receivables sold without recourse	$ 0	$ 0
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Share of companies in consolidated net revenues	10.50%	10.00%	10.00%
Number of customers | Customer	1	0	0

Inventories - Inventories, Net

Inventories - Inventories, Net of Reserve (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 125	$ 81
Work-in-process	787	756
Finished products	423	336
Total	$ 1,335	$ 1,173

Other Current Assets - Other Cu

Other Current Assets - Other Current Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Receivables from government agencies	$ 161	$ 150
Taxes and other government receivables	94	39
Advances	35	28
Prepayments	39	47
Loans and deposits	8	9
Interest receivable	6	4
Derivative instruments	41	2
Other current assets	41	32
Total	$ 425	$ 311

Business Combination - Addition

Business Combination - Additional Information (Detail) - AMS [Member] $ in Millions	Jul. 28, 2016USD ($)Employees
Business Acquisition [Line Items]
Number of technical experts transferred | Employees	46
Purchase consideration paid in cash	$ 78
Acquisition-date fair value of a sales earn-out value, low	12
Acquisition-date fair value of a sales earn-out value, high	$ 37

Business Combination - Schedule

Business Combination - Schedule of Fair Value of Identifiable Assets and Assumed Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Jul. 28, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Property, plant and equipment			$ 2
Goodwill	$ 123	$ 116	42	$ 76
Technology [Member]
Business Acquisition [Line Items]
Intangible assets			6
In-process R&D [Member]
Business Acquisition [Line Items]
Intangible assets			40
AMS [Member]
Business Acquisition [Line Items]
Property, plant and equipment			2
Goodwill			42
Total net assets at fair value			90
Purchase consideration			90
AMS [Member] | Technology [Member]
Business Acquisition [Line Items]
Intangible assets			6
AMS [Member] | In-process R&D [Member]
Business Acquisition [Line Items]
Intangible assets			$ 40

Goodwill - Changes in Carrying

Goodwill - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 116	$ 76
Business combination		42
Foreign currency translation	7	(2)
Goodwill, Ending Balance	123	116
Microcontrollers and Digital ICs Group (MDG) [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	114	74
Business combination		42
Foreign currency translation	7	(2)
Goodwill, Ending Balance	121	114
Analog, MEMS & Sensors Group (AMS) [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	2	2
Goodwill, Ending Balance	$ 2	$ 2

Goodwill - Additional Informati

Goodwill - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Line Items]
Additions due to acquisitions			$ 42,000,000
Impairment loss of goodwill	$ 0	$ 0
Accumulated impairment losses, net		102,000,000	102,000,000
Microcontrollers and Digital ICs Group (MDG) [Member]
Goodwill [Line Items]
Additions due to acquisitions			42,000,000
Accumulated impairment losses, net		96,000,000	96,000,000
Microcontrollers and Digital ICs Group (MDG) [Member] | NFC and RFID Reader Business [Member]
Goodwill [Line Items]
Additions due to acquisitions		42,000,000
Others [Member]
Goodwill [Line Items]
Accumulated impairment losses, net		$ 6,000,000	$ 6,000,000

Other Intangible Assets - Other

Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Cost	$ 1,228	$ 1,145
Accumulated Amortization	(1,019)	(950)
Net Cost	209	195
Technologies & Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	668	618
Accumulated Amortization	(566)	(534)
Net Cost	102	84
Contractual Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	5	4
Accumulated Amortization	(5)	(4)
Purchased and Internally Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	440	407
Accumulated Amortization	(383)	(347)
Net Cost	57	60
In-process R&D [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	50	51
Net Cost	50	51
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	65	65
Accumulated Amortization	$ (65)	$ (65)

Other Intangible Assets - Addit

Other Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jul. 28, 2016
Finite-Lived Intangible Assets [Line Items]
Assets recognized during acquisition				$ 2,000,000
Amortization expense	$ 58,000,000	$ 61,000,000	$ 60,000,000
NFC and RFID Reader Business [Member] | Construction in Progress [Member]
Finite-Lived Intangible Assets [Line Items]
Assets recognized during acquisition		40,000,000
Acquired Technologies [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment loss of intangible assets	$ 0	4,000,000	10,000,000
Technologies and Licenses [Member] | NFC and RFID Reader Business [Member]
Finite-Lived Intangible Assets [Line Items]
Assets recognized during acquisition		$ 6,000,000
Digital [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of digital long-lived assets			$ 6,000,000

Other Intangible Assets - Estim

Other Intangible Assets - Estimated Amortization Expense of Existing Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2,018	$ 75
2,019	58
2,020	41
2,021	22
2,022	10
Thereafter	3
Net Cost	$ 209	$ 195

Property, Plant and Equipment -

Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Gross Cost	$ 19,374	$ 17,008
Accumulated Depreciation	(16,280)	(14,721)
Net Cost	3,094	2,287
Land [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	81	73
Net Cost	81	73
Buildings [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	891	788
Accumulated Depreciation	(479)	(412)
Net Cost	412	376
Facilities and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	3,074	2,713
Accumulated Depreciation	(2,782)	(2,474)
Net Cost	292	239
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	14,529	12,808
Accumulated Depreciation	(12,569)	(11,415)
Net Cost	1,960	1,393
Computer and R&D Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	397	362
Accumulated Depreciation	(351)	(324)
Net Cost	46	38
Other Tangible Assets [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	118	105
Accumulated Depreciation	(99)	(96)
Net Cost	19	9
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	284	159
Net Cost	$ 284	$ 159

Property, Plant and Equipment77

Property, Plant and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jul. 28, 2016
Property, Plant and Equipment [Line Items]
Assets recognised during acquisition				$ 2,000,000
Depreciation charge	$ 592,000,000	$ 635,000,000	$ 676,000,000
Tax incentives and capital investment funding	139,000,000	15,000,000	7,000,000
Reduction in depreciation charges due to public funding	21,000,000	6,000,000	4,000,000
Cash proceeds from sale of property, plant and equipment	3,000,000	4,000,000	62,000,000
Long lived assets held for sale impairment charge		3,000,000
Impairment of long-lived assets	0		$ 0
Building and Machinery [Member] | NFC and RFID Reader Business [Member]
Property, Plant and Equipment [Line Items]
Assets recognised during acquisition		2,000,000
Maximum [Member]
Property, Plant and Equipment [Line Items]
Net cost of assets under capital leases	$ 1,000,000	$ 1,000,000

Long-Term Investments - Long-Te

Long-Term Investments - Long-Term Investments (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Equity-method investments	$ 45	$ 45
Cost-method investments	12	12
Total	$ 57	$ 57

Long-Term Investments - Schedul

Long-Term Investments - Schedule of Equity-method Investments (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Equity investments, Carrying value	$ 45	$ 45
ST-Ericsson SA [Member]
Schedule of Equity Method Investments [Line Items]
Equity investments, Carrying value	$ 45	$ 45
Equity investments, Ownership percentage	50.00%	50.00%

Long-Term Investments - Additio

Long-Term Investments - Additional Information (Detail) - USD ($)	Sep. 09, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Feb. 03, 2009
Schedule of Equity Method Investments [Line Items]
Fair value of retained noncontrolling interest	$ 55,000,000
Funding commitment letters capped amount		$ 149,000,000
Income (loss) on equity-method investments		$ (2,000,000)	$ 7,000,000	$ 2,000,000
ST-Ericsson SA [Member]
Schedule of Equity Method Investments [Line Items]
Controlling share held by Ericsson					50.00%
Sale of Stock	1
Deconsolidated gain or loss	$ 0
Liquidation date		Apr. 15, 2014
ST-Ericsson SA [Member] | Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) on equity-method investments		$ 1,000,000	$ 1,000,000	$ 1,000,000

Other Non-Current Assets - Othe

Other Non-Current Assets - Other Non-Current Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Available-for-sale equity securities	$ 11	$ 11
Trading equity securities	9	8
Long-term State receivables	417	388
Long-term receivables from third parties	1	1
Prepaid for pension	1
Deposits and other non-current assets	36	26
Total	$ 475	$ 434

Other Non-Current Assets - Addi

Other Non-Current Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Non-current assets sold without recourse	$ 118,000,000	$ 127,000,000
Minimum [Member]
Long-term receivables expected collection period	1 year
Maximum [Member]
Non-current assets sold , cost	$ 1,000,000	$ 1,000,000

Other Payables and Accrued Li83

Other Payables and Accrued Liabilities - Other Payables and Accrued Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Employee related liabilities	$ 390	$ 297
Employee compensated absences	141	111
Taxes other than income taxes	65	58
Advances	89	39
Payables to equity-method investments	49	49
Derivative instruments	1	44
Provision for restructuring	46	49
Defined benefit plans - current portion	9	9
Defined contribution plans - accrued benefits	19	16
Royalties	23	20
Others	65	58
Total	$ 897	$ 750

Long-Term Debt - Long-Term Debt

Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total long-term debt	$ 1,701	$ 1,451
Less current portion	(118)	(117)
Total long-term debt, less current portion	1,583	1,334
2.56% due 2020, floating interest rate at Libor + 1.199% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	38	50
2.56% due 2020, floating interest rate at Libor + 1.056% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	83	110
0.59% due 2020, floating interest rate at Euribor + 0.917% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	45	53
2.09% due 2021, floating interest rate at Libor + 0.525% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	120	150
2.22% due 2021, floating interest rate at Libor + 0.572% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	115	144
Zero Coupon due 2019 (Tranche A) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Senior unsecured convertible bonds		564
1.0% due 2021 (Tranche B) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Senior unsecured convertible bonds		362
Zero-coupon, due 2022 (Tranche A) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Senior unsecured convertible bonds	662
0.25%, due 2024 (Tranche B) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Senior unsecured convertible bonds	616
0.31% (weighted average), due 2018-2023, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable	20	14
1.95% (weighted average), due 2017, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable		1
0.41% (weighted average), due 2018, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable	1	1
0.87% (weighted average), due 2020, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable	$ 1	$ 2

Long-Term Debt - Long-Term De85

Long-Term Debt - Long-Term Debt (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2017	Jul. 03, 2014
2.56% due 2020, floating interest rate at Libor + 1.199% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,020
Interest rate	2.56%
Description of floating rate basis	Libor + 1.199%
Basis spread on floating rate	1.199%
2.56% due 2020, floating interest rate at Libor + 1.056% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,020
Interest rate	2.56%
Description of floating rate basis	Libor + 1.056%
Basis spread on floating rate	1.056%
0.59% due 2020, floating interest rate at Euribor + 0.917% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,020
Interest rate	0.59%
Description of floating rate basis	Euribor + 0.917%
Basis spread on floating rate	0.917%
2.09% due 2021, floating interest rate at Libor + 0.525% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,021
Interest rate	2.09%
Description of floating rate basis	Libor + 0.525%
Basis spread on floating rate	0.525%
2.22% due 2021, floating interest rate at Libor + 0.572% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,021
Interest rate	2.22%
Description of floating rate basis	Libor + 0.572%
Basis spread on floating rate	0.572%
Zero Coupon due 2019 (Tranche A) [Member]
Debt Instrument [Line Items]
Interest rate		1.00%
Zero Coupon due 2019 (Tranche A) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,019
Interest rate	0.00%	0.00%
1.0% due 2021 (Tranche B) [Member]
Debt Instrument [Line Items]
Interest rate		1.00%
1.0% due 2021 (Tranche B) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,021
Interest rate	1.00%	1.00%
Zero-coupon, due 2022 (Tranche A) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,022
Interest rate	0.00%
0.25%, due 2024 (Tranche B) [Member]
Debt Instrument [Line Items]
Interest rate	0.25%
0.25%, due 2024 (Tranche B) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,024
Interest rate	0.25%
0.31% (weighted average), due 2018-2023, fixed interest rate [Member]
Debt Instrument [Line Items]
Interest rate	0.31%
0.31% (weighted average), due 2018-2023, fixed interest rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,018
0.31% (weighted average), due 2018-2023, fixed interest rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,023
1.95% (weighted average), due 2017, fixed interest rate [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,017
Interest rate	1.95%
0.41% (weighted average), due 2018, fixed interest rate [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,018
Interest rate	0.41%
0.87% (weighted average), due 2020, fixed interest rate [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2,020
Interest rate	0.87%

Long-Term Debt - Long-Term De86

Long-Term Debt - Long-Term Debt Denominated by Currencies (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term debt	$ 1,701	$ 1,451
U.S. dollar [Member]
Debt Instrument [Line Items]
Long-term debt	1,634	1,380
Euro [Member]
Debt Instrument [Line Items]
Long-term debt	$ 67	$ 71

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) $ / shares in Units, € in Millions	Oct. 11, 2017USD ($)	Oct. 02, 2017USD ($)shares	Jul. 03, 2017USD ($)$ / sharesshares	Oct. 03, 2016USD ($)shares	Jul. 03, 2014USD ($)$ / shares	Oct. 10, 2017USD ($)shares	Jun. 30, 2017USD ($)shares	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Jul. 03, 2014USD ($)$ / shares	Dec. 31, 2017EUR (€)	Aug. 31, 2017EUR (€)	Mar. 12, 2013USD ($)	Mar. 12, 2013EUR (€)
Debt Instrument [Line Items]
Net proceeds from issuance of senior unsecured convertible bonds								$ 1,502,000,000
Conversion price adjusted		1.16%		1.24%
Debt Conversion, Converted Instrument, Shares Issued | shares								4,300,000
Debt conversion, bond par value						$ 400,000,000
Conversion features of the instruments value			$ 242,000,000					$ 242,000,000	$ 121,000,000	$ 0
Allocated debt issuance costs			1,000,000		$ 1,000,000	340,000,000		95,000,000
Unamortized debt discount and issuance costs totalled								221,000,000	$ 74,000,000
Debt Conversion,Cash redemption	$ 60,000,000
Loss on financial instruments, net								(16,000,000)
Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Net proceeds from issuance of senior unsecured convertible bonds			1,502,000,000		994,000,000
Medium Term Credit Facilities [Member]
Debt Instrument [Line Items]
Unutilized committed medium term credit facilities								580,000,000
Multi Currency Loan to Support our Industrial and R&D Programs [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount | €															€ 350
Amount outstanding								235,000,000
Line of credit amount withdrawn														$ 471,000,000
Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Fair value of liability component			$ 1,266,000,000		$ 878,000,000						$ 878,000,000
Europe [Member] | Multi Currency Loan to Support our Industrial and R&D Programs [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount | €												€ 350
Amount outstanding								166,000,000
Line of credit amount withdrawn								$ 321,000,000				€ 100
Zero Coupon due 2019 (Tranche A) [Member]
Debt Instrument [Line Items]
Interest rate					1.00%						1.00%
Senior unsecured convertible bonds conversion premium rate					30.00%						30.00%
Debt conversion, bond par value							$ 600,000,000
Debt discount rate							2.09%	2.09%		2.40%	2.40%
Conversion features of the instruments value							$ 0
Allocated debt issuance costs							598,000,000
Debt Conversion,Cash redemption							$ 2,000,000
Zero Coupon due 2019 (Tranche A) [Member] | Treasury Stock [Member]
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Shares Issued | shares							13,000,000
Zero Coupon due 2019 (Tranche A) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount					$ 600,000,000						$ 600,000,000
Long-term debt maturity date								2,019
Interest rate					0.00%			0.00%			0.00%	0.00%
Percentage at which bonds issued			101.265%
Zero Coupon due 2019 (Tranche A) [Member] | Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Fair value of liability component							$ 574,000,000	$ 574,000,000
Loss on financial instruments, net							$ 5,000,000	$ 5,000,000
1.0% due 2021 (Tranche B) [Member]
Debt Instrument [Line Items]
Debt instrument periodic payment								Semi-annually
Interest rate					1.00%						1.00%
Senior unsecured convertible bonds conversion premium rate					31.00%						31.00%
Debt conversion, bond par value						$ 60,000,000
Debt discount rate						2.47%		2.47%		3.22%	3.22%
Conversion features of the instruments value						$ 0
Allocated debt issuance costs						59,000,000
Debt Conversion,Cash redemption						$ 1,000,000
1.0% due 2021 (Tranche B) [Member] | Treasury Stock [Member]
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Shares Issued | shares						13,700,000
1.0% due 2021 (Tranche B) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount					$ 400,000,000						$ 400,000,000
Long-term debt maturity date								2,021
Interest rate					1.00%			1.00%			1.00%	1.00%
1.0% due 2021 (Tranche B) [Member] | Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Fair value of liability component						$ 370,000,000		$ 370,000,000
Loss on financial instruments, net						$ 11,000,000		$ 11,000,000
Zero-coupon, due 2022 (Tranche A) [Member]
Debt Instrument [Line Items]
Debt discount rate								2.70%	2.70%
Zero-coupon, due 2022 (Tranche A) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date								2,022
Interest rate								0.00%				0.00%
0.25%, due 2024 (Tranche B) [Member]
Debt Instrument [Line Items]
Interest rate								0.25%				0.25%
Debt discount rate								3.28%	3.28%
0.25%, due 2024 (Tranche B) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date								2,024
Interest rate								0.25%				0.25%
Dual Tranche Senior Unsecured Convertible Bonds [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount			$ 1,500,000,000		$ 1,000,000,000						$ 1,000,000,000
Senior unsecured convertible bonds conversion price | $ / shares			$ 20.54		$ 12						$ 12
Tranche One [Member]
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Shares Issued | shares		16,178	9,737	16,491
Debt conversion, bond par value		$ 200,000	$ 200,000	$ 200,000
Tranche Two [Member]
Debt Instrument [Line Items]
Net proceeds from issuance of senior unsecured convertible bonds		$ 994
Debt Conversion, Converted Instrument, Shares Issued | shares			9,737	16,366
Zero Coupon Due 2022 (Tranche A) [Member]
Debt Instrument [Line Items]
Senior unsecured convertible bonds conversion premium rate			37.50%
Zero Coupon Due 2022 (Tranche A) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount			$ 750,000,000
Long-term debt maturity date								2,022
0.25% due 2022(Tranche B) [Member]
Debt Instrument [Line Items]
Debt instrument periodic payment								Semi-annually
Senior unsecured convertible bonds conversion premium rate			37.50%
0.25% due 2022(Tranche B) [Member] | Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount			$ 750,000,000
Long-term debt maturity date								2,024
Interest rate			0.25%
New Medium Term Credit Facility [Member] | Europe [Member] | Multi Currency Loan to Support our Industrial and R&D Programs [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount | €													€ 500
Line of credit amount withdrawn								$ 0

Long-Term Debt - Total Long-Ter

Long-Term Debt - Total Long-Term Debt Outstanding Maturities (Detail) $ in Millions	Dec. 31, 2017USD ($)
Debt Disclosure [Abstract]
2,018	$ 118
2,019	118
2,020	118
2,021	62
2,022	753
Thereafter	753
Total	$ 1,922

Post-Employment and Other Lon89

Post-Employment and Other Long-Term Employees Benefits - Changes in Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in plan assets:
Plan assets at fair value at beginning of year	$ 477
Foreign currency translation adjustments	0	$ 0
Plan assets at fair value at end of year	552	477
Net amount recognized in the balance sheet consisted of the following:
Non-current assets	1
Pension Benefits [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	825	816
Service cost	27	27	$ 28
Interest cost	23	25	25
Employee contributions	4	7
Benefits paid	(16)	(27)
Effect of curtailment		(6)
Effect of settlement	(10)	(10)
Actuarial (gain) loss	25	36
Foreign currency translation adjustment	58	(43)
Benefit obligation at end of year	936	825	816
Change in plan assets:
Plan assets at fair value at beginning of year	477	473
Actual return on plan assets	40	31
Employer contributions	27	27
Employee contributions	4	7
Benefits paid	(7)	(18)
Effect of settlement	(10)	(10)
Foreign currency translation adjustments	21	(33)
Plan assets at fair value at end of year	552	477	473
Funded status	(384)	(348)
Net amount recognized in the balance sheet consisted of the following:
Non-current assets	1
Current liabilities	(9)	(9)
Long-term liabilities	(376)	(339)
Net amount recognized	(384)	(348)
Other Long-Term Benefit [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	52	54
Service cost	3	3	5
Interest cost	2	2	2
Benefits paid	(2)	(5)
Effect of curtailment		(1)
Actuarial (gain) loss	3
Foreign currency translation adjustment	7	(1)
Benefit obligation at end of year	65	52	$ 54
Change in plan assets:
Funded status	(65)	(52)
Net amount recognized in the balance sheet consisted of the following:
Current liabilities	(4)	(3)
Long-term liabilities	(61)	(49)
Net amount recognized	$ (65)	$ (52)

Post-Employment and Other Lon90

Post-Employment and Other Long-Term Employees Benefits - Accumulated Other Comprehensive Income (Loss) Before Tax Effects (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Other comprehensive loss, actuarial (gains)/losses, beginning balance	$ 139	$ 137
Net amount generated/arising in current year, actuarial (gains)/losses	6	25
Amortization, actuarial (gains)/losses	(10)	(14)
Foreign currency translation, actuarial (gains)/losses before tax	9	(9)
Other comprehensive loss, actuarial (gains)/losses, ending balance	144	139
Other comprehensive loss, prior service cost, beginning balance	2	3
Net amount generated/arising in current year, prior service cost	0	0
Amortization, prior service cost		(1)
Foreign currency translation adjustment	0	0
Other comprehensive loss, prior service cost, ending balance	2	2
Other comprehensive loss, Total, beginning balance	141	140
Net amount generated/arising in current year, Total	6	25
Amortization, Total	(10)	(15)
Foreign currency translation adjustment, Total	9	(9)
Other comprehensive loss, Total, ending balance	$ 146	$ 141

Post-Employment and Other Lon91

Post-Employment and Other Long-Term Employees Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Expected amortization of actuarial losses in year 2018	$ 9
Pension plans with accumulated benefit obligations in excess of plan assets, accumulated benefit obligation	853	$ 738
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets	511	443
Accrued benefits related to defined contribution pension plans	19	16
Annual cost of defined contribution plans	74	70	$ 70
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plans with benefit obligations in excess of plan assets, benefit obligation	961	811
Pension plans with benefit obligations in excess of plan assets, fair value of plan assets	511	464
Employer contributions	27	$ 27
Expected contribution in cash	$ 26

Post-Employment and Other Lon92

Post-Employment and Other Long-Term Employees Benefits - Schedule of Accumulated Benefit Obligations (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligations	$ 828	$ 762
Other Long-Term Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligations	$ 53	$ 41

Post-Employment and Other Lon93

Post-Employment and Other Long-Term Employees Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 27	$ 27	$ 28
Interest cost	23	25	25
Expected return on plan assets	(21)	(20)	(22)
Amortization of actuarial net loss (gain)	9	8	7
Amortization of prior service cost		1	1
Effect of settlement	1		1
Net periodic benefit cost	39	41	40
Other Long-Term Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	3	3	5
Interest cost	2	2	2
Amortization of actuarial net loss (gain)	3
Effect of curtailment		(1)	(1)
Net periodic benefit cost	$ 8	$ 4	$ 6

Post-Employment and Other Lon94

Post-Employment and Other Long-Term Employees Benefits - Weighted Average Assumptions Used in Determination of Benefit Obligation and Plan Assets (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Retirement Benefits [Abstract]
Discount rate	2.54%	2.57%
Salary increase rate	2.37%	2.74%
Expected long-term rate of return on funds for the pension expense of the following year	4.23%	4.24%
Net periodic benefit cost, Discount rate	2.57%	3.19%	3.03%
Net periodic benefit cost, Salary increase rate	2.74%	3.07%	2.65%
Net periodic benefit cost, Expected long-term rate of return on funds for the pension expense of the year	4.24%	4.44%	4.76%

Post-Employment and Other Lon95

Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation (Detail)	Dec. 31, 2017	Dec. 31, 2016
Allocation of pension plan assets	100.00%	100.00%
Cash and Cash Equivalents [Member]
Allocation of pension plan assets	3.00%	2.00%
Equity Securities [Member]
Allocation of pension plan assets	30.00%	29.00%
Government Debt Securities [Member]
Allocation of pension plan assets	3.00%	3.00%
Corporate Debt Securities [Member]
Allocation of pension plan assets	26.00%	26.00%
Investment Funds [Member]
Allocation of pension plan assets	17.00%	18.00%
Real Estate [Member]
Allocation of pension plan assets	2.00%	2.00%
Other (Mainly Insurance Assets - Contracts and Reserves) [Member]
Allocation of pension plan assets	19.00%	20.00%

Post-Employment and Other Lon96

Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation (Parenthetical) (Detail)	Dec. 31, 2017
Corporate Bonds [Member]
Investment in funds, percentage	55.00%
U.S.Treasury Bonds [Member]
Investment in funds, percentage	45.00%

Post-Employment and Other Lon97

Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation Including Fair-Value Measurements (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 552	$ 477
Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	14	11
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	167	137
Government Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	18	13
Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	141	125
Investment Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	93	84
Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	12	12
Other (Mainly Insurance Assets - Contracts and Reserves) [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	107	95
Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	46	39
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	14	11
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8	6
Fair Value, Inputs, Level 1 [Member] | Government Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	17	12
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	5	4
Fair Value, Inputs, Level 1 [Member] | Investment Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	2	6
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	399	342
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	159	131
Fair Value, Inputs, Level 2 [Member] | Government Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	1	1
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	136	121
Fair Value, Inputs, Level 2 [Member] | Investment Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	91	78
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	12	11
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	107	96	$ 102
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets		1
Fair Value, Inputs, Level 3 [Member] | Other (Mainly Insurance Assets - Contracts and Reserves) [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 107	$ 95

Post-Employment and Other Lon98

Post-Employment and Other Long-Term Employees Benefits - Reconciliation for Plan Assets Measured at Fair Value Using Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value at beginning of year	$ 477
Foreign currency translation adjustment	0	$ 0
Plan assets at fair value at end of year	552	477
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value at beginning of year	96	102
Contributions (employer and employee)	12	16
Actual return on plan assets	(2)	(3)
Net benefit payments	4	6
Settlements	(8)	(10)
Foreign currency translation adjustment	5	(3)
Plan assets at fair value at end of year	$ 107	$ 96

Post-Employment and Other Lon99

Post-Employment and Other Long-Term Employees Benefits - Estimated Future Benefit Payments (Detail) $ in Millions	Dec. 31, 2017USD ($)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2,018	$ 32
2,019	31
2,020	26
2,021	36
2,022	35
From 2023 to 2026	264
Other Long-Term Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
2,018	4
2,019	5
2,020	8
2,021	3
2,022	4
From 2023 to 2026	$ 30

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail)	Jun. 20, 2017USD ($)$ / sharesshares	May 25, 2016$ / shares	May 27, 2015$ / shares	Oct. 31, 2016	Mar. 31, 2018$ / shares	Dec. 31, 2017USD ($)$ / sharesshares	Sep. 30, 2017$ / shares	Jun. 30, 2017$ / shares	Mar. 31, 2017$ / shares	Dec. 31, 2016USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / shares	Jun. 30, 2016USD ($)$ / shares	Mar. 31, 2016$ / shares	Dec. 31, 2015USD ($)$ / sharesshares	Sep. 30, 2015USD ($)$ / shares	Jun. 30, 2015USD ($)$ / shares	Mar. 31, 2015$ / shares	Dec. 31, 2014USD ($)$ / shares	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / shares	Dec. 31, 2013$ / shares	Dec. 31, 2008shares	Dec. 31, 2007	Dec. 31, 2017EUR (€)€ / sharesshares	Dec. 31, 2016€ / shares	Jun. 13, 2014shares	May 20, 2012	May 20, 2011	May 20, 2010	Jan. 22, 2007shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Authorized share capital | €																													€ 1,810,000,000
Common stock, shares authorized						1,200,000,000				1,200,000,000												1,200,000,000	1,200,000,000						1,200,000,000
Preference stock, shares authorized						540,000,000				540,000,000				540,000,000								540,000,000	540,000,000	540,000,000					540,000,000						540,000,000
Common stock, nominal value | € / shares																													€ 1.04	€ 1.04
Common stock, shares issued						911,110,420				911,110,420												911,110,420	911,110,420						911,110,420
Common stock, shares outstanding						896,590,286				883,410,506												896,590,286	883,410,506						896,590,286
Shares issued as a percentage of par value of the preference shares to be issued																																			25.00%
Preference shares outstanding maximum period																												2 years
Expiration extended period of options after date of grant,in years				10 years
Preference share issued						0				0												0	0						0
Acquisition of shares																											29,500,000
Number of common shares authorized to repurchase	18,600,000																														20,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $	$ 297,000,000
Transfer of treasury shares to employees under the Company's share based remuneration programs						40,198,271																40,198,271							40,198,271
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						4,897,965
Company owned treasury shares						14,520,134				27,619,914												14,520,134	27,619,914						14,520,134
Total intrinsic value of options exercised | $						$ 1,000,000								$ 1,000,000								$ 1,000,000		$ 1,000,000
Total intrinsic value of options outstanding | $						4,000,000																4,000,000
Fair value of shares vested | $																						38,000,000	$ 42,000,000	35,000,000
Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory | $						3,000,000				$ 2,000,000				$ 2,000,000								3,000,000	2,000,000	2,000,000
Total unrecognized compensation cost related to the grant of unvested shares | $						$ 102,000,000																$ 102,000,000
Employee service share-based compensation, unvested awards, total compensation cost not yet recognized, period for recognition																						10 months
Deferred income tax benefit relating to unvested share based compensation expense | $																						$ 3,000,000	$ 2,000,000	$ 2,000,000
Dividends, per share | $ / shares	$ 0.24	$ 0.24	$ 0.40			$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0.10
Dividend paid | $										$ 47,000,000	$ 53,000,000	$ 53,000,000		$ 88,000,000	$ 78,000,000	$ 88,000,000				$ 88,000,000	$ 87,000,000
Dividend payable date									2017-03	2016-12			2016-03	2015-12				2014-12					2016-12	2015-12	2014-12
Dividends payable to stockholders | $						$ 60,000,000				$ 59,000,000		$ 9,000,000			$ 9,000,000			$ 87,000,000		$ 9,000,000		60,000,000	$ 59,000,000		$ 87,000,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised | $										$ 1,000,000													$ 1,000,000
Dividend Distribution First Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid | $																						53,000,000
Dividend Distribution Second Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid | $																						53,000,000
Dividend Distribution Third Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid | $																						47,000,000
Dividend Distribution Remaining Portion of Third Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid | $																			$ 6,000,000			7,000,000
Dividend Distribution Remaining Portion of Last Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid | $																						$ 53,000,000
Dividend Distribution Fourth Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid | $																			$ 53,000,000
Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends, per share | $ / shares					$ 0.06
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						4,897,965
Vesting schedule for Supervisory Board																						One third of the total number of awards granted
Vesting period of awards																						3 years
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | $ / shares																							$ 5.36	$ 9.78
Supervisory Board 2012 Plan [Member] | Supervisory Board [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards are granted at the nominal value of the share | € / shares																													€ 1.04
Employee Plan 2009 [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sub plan for employees of Company's European subsidiaries for statutory payroll tax purposes nonvested shares vested over requisite service period																																36.00%	32.00%	32.00%
Sales Evolution and Operating Income Compared to a Basket of Competitors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share based payment award percentage of weight to total number of awards granted																							80.00%
Days of Sales Outstanding Compared to the Budget and Return on Net Assets Compared to Budget [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share based payment award percentage of weight to total number of awards granted																							20.00%
2013 CEO Special Bonus [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						7,095
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | $ / shares																										$ 9.35
2014 CEO Special Bonus [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						11,495
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | $ / shares																									$ 9.35
Employee Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | $ / shares																						$ 9.23
Employee Plan 2014 [Member] | Performance Conditions [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares to vest																						One third of the awards granted will fully vest
Employee Plan 2014 [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						1,604,200
Employee Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | $ / shares																							$ 7.62
Employee Plan 2015 [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						1,515,261
Employee Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | $ / shares																						$ 16.52
Options expected to vest, options (in shares)						3,478,585																3,478,585							3,478,585
Options expected to vest, options percentage																						100.00%
Employee Plan 2017 [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						1,950
Employee Plan 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan | $ / shares																						$ 6.37
Employee Plan 2016 [Member] | Performance Conditions [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares to vest																						45.00%
Employee Plan 2016 [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																						1,717,119

Shareholders' Equity - Summary

Shareholders' Equity - Summary of Grants under Outstanding Stock Award Plans (Detail)	12 Months Ended
	Dec. 31, 2017shares
Employees [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Awards granted, Number of shares	8,050,800
Employees [Member] | 2016 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Awards granted, Number of shares	69,165
Employees [Member] | Employee Plan 2017 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Dec. 22, 2017
Awards granted, Number of shares	7,981,635
2005 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,005
Options granted and vested	66,000
Options waived at grant	(15,000)
2006 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,006
Options granted and vested	66,000
Options waived at grant	(15,000)
2007 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,007
Options granted and vested	165,000
Options waived at grant	(22,500)
2008 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,008
Options granted and vested	165,000
Options waived at grant	(22,500)
2009 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,009
Options granted and vested	165,000
Options waived at grant	(7,500)
2010 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,010
Options granted and vested	172,500
Options waived at grant	(7,500)
2011 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,011
Options granted and vested	172,500
Options waived at grant	(30,000)
2012 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,012
Options granted and vested	180,000
Options waived at grant	(22,500)
2013 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,013
Options granted and vested	0
Options waived at grant	0
2014 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,014
Options granted and vested	0
Options waived at grant	0
2015 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,015
Options granted and vested	0
Options waived at grant	0
2016 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,016
Options granted and vested	0
Options waived at grant	0
2017 [Member] | Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2,017
Options granted and vested	0
Options waived at grant	0
July 22, 2013 [Member] | Employees [Member] | 2013 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 22, 2013
Awards granted, Number of shares	63,848
July 22, 2014 [Member] | Employees [Member] | 2014 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 22, 2014
Awards granted, Number of shares	34,483
July 22, 2014 [Member] | Employees [Member] | Employee Plan 2014 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 22, 2014
Awards granted, Number of shares	6,458,435
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(1,939,222)
December 18, 2014 [Member] | Employees [Member] | Employee Plan 2014 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Dec. 18, 2014
Awards granted, Number of shares	500,775
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(31,332)
March 24, 2015 [Member] | Employees [Member] | 2015 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Mar. 24, 2015
Awards granted, Number of shares	53,369
July 27, 2015 [Member] | Employees [Member] | Employee Plan 2015 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 27, 2015
Awards granted, Number of shares	6,591,200
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(1,961,886)
December 15, 2015 [Member] | Employees [Member] | Employee Plan 2015 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Dec. 15, 2015
Awards granted, Number of shares	370,920
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(29,078)
April 26, 2016 [Member] | Employees [Member] | 2016 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Apr. 26, 2016
Awards granted, Number of shares	69,165
July 26, 2016 [Member] | Employees [Member] | Employee Plan 2016 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 26, 2016
Awards granted, Number of shares	6,621,100
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(1,628,376)
December 19, 2016 [Member] | Employees [Member] | Employee Plan 2016 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Dec. 19, 2016
Awards granted, Number of shares	376,800
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(53,900)
July 25, 2017 [Member] | Employees [Member] | Employee Plan 2017 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 25, 2017
Awards granted, Number of shares	7,634,475
December 22, 2017 [Member] | Employees [Member] | Employee Plan 2017 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Awards granted, Number of shares	347,160

Shareholders' Equity - Summa102

Shareholders' Equity - Summary of Nonvested Share Activity (Detail) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vested, Number of Shares	(4,897,965)
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	11,810,781
Awards granted, Number of shares	8,050,800
Awards forfeited/waived, Number of Shares	(126,301)
Awards cancelled on failed vesting conditions, Number of Shares	(1,682,276)
Awards vested, Number of Shares	(4,897,965)
Ending Balance, Number of Shares	13,155,039	11,810,781
Employees [Member] | 2013 CEO Special Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	7,095
Awards vested, Number of Shares	(7,095)
Ending Balance, Number of Shares	0	7,095
Employees [Member] | Employee Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	1,611,453
Awards forfeited/waived, Number of Shares	(7,253)
Awards vested, Number of Shares	(1,604,200)
Ending Balance, Number of Shares		1,611,453
Employees [Member] | 2014 CEO Special Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	11,495
Awards vested, Number of Shares	(11,495)
Ending Balance, Number of Shares		11,495
Employees [Member] | Employee Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	3,170,739
Awards forfeited/waived, Number of Shares	(24,694)
Awards vested, Number of Shares	(1,515,261)
Ending Balance, Number of Shares	1,630,784	3,170,739
Employees [Member] | 2015 CEO Special Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	35,579
Awards vested, Number of Shares	(17,790)
Ending Balance, Number of Shares	17,789	35,579
Employees [Member] | Employee Plan 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	6,974,420
Awards forfeited/waived, Number of Shares	(62,179)
Awards cancelled on failed vesting conditions, Number of Shares	(1,682,276)
Awards vested, Number of Shares	(1,717,119)
Ending Balance, Number of Shares	3,512,846	6,974,420
Employees [Member] | Employee Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted, Number of shares	7,981,635
Awards forfeited/waived, Number of Shares	(32,175)
Awards vested, Number of Shares	(1,950)
Ending Balance, Number of Shares	7,947,510
Employees [Member] | 2016 CEO Special Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted, Number of shares	69,165
Awards vested, Number of Shares	(23,055)
Ending Balance, Number of Shares	46,110
Supervisory Board [Member] | 2006 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares		3,000
Year of grant	2,006
Exercised		(3,000)
Supervisory Board [Member] | 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	7,500	19,500
Year of grant	2,007
Exercised	(7,500)	(12,000)
Ending Balance, Number of Shares		7,500
Supervisory Board [Member] | 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	24,000	39,000
Year of grant	2,008
Exercised	(7,500)	(15,000)
Ending Balance, Number of Shares	16,500	24,000
Supervisory Board [Member] | 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	35,000	45,000
Year of grant	2,009
Exercised	(12,500)	(10,000)
Ending Balance, Number of Shares	22,500	35,000
Supervisory Board [Member] | 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	45,000	45,000
Year of grant	2,010
Exercised	(15,000)
Ending Balance, Number of Shares	30,000	45,000
Supervisory Board [Member] | 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	67,500	82,500
Year of grant	2,011
Exercised	(15,000)	(15,000)
Ending Balance, Number of Shares	52,500	67,500
Supervisory Board [Member] | 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	87,500	95,000
Year of grant	2,012
Exercised	(22,500)	(7,500)
Ending Balance, Number of Shares	65,000	87,500

Shareholders' Equity - Classifi

Shareholders' Equity - Classification of Pre-Payroll Tax and Social Contribution Stock-Based Compensation Expense Included in Consolidated Statements of Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	$ 61	$ 38	$ 38
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	12	7	7
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	31	17	17
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	$ 18	$ 14	$ 14

Shareholders' Equity - Changes

Shareholders' Equity - Changes in AOCI Attributable to Stockholders (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
OCI before reclassifications	$ 338	$ (115)	$ (321)
Amounts reclassified from AOCI	(20)	24	172
OCI Balance	318	(91)	(149)
Cumulative tax impact	(1)	2	(4)
OCI Balance, net of tax	317	(89)	(153)
Balance	647	329	420	$ 569
Cumulative tax impact	41	42	40	44
Balance, net of tax	688	371	460	613
Foreign Currency Translation Adjustments ("CTA") [Member]
OCI before reclassifications	224	(57)	(202)
Amounts reclassified from AOCI			(10)
OCI Balance	224	(57)	(212)
OCI Balance, net of tax	224	(57)	(212)
Balance	768	544	601	813
Balance, net of tax	768	544	601	813
Accumulated Defined Benefit Plan Items [Member]
OCI before reclassifications	(6)	(25)	(2)
Amounts reclassified from AOCI	10	15	12
OCI Balance	4	(10)	10
Cumulative tax impact	(1)	2	(4)
OCI Balance, net of tax	3	(8)	6
Balance	(166)	(170)	(160)	(170)
Cumulative tax impact	41	42	40	44
Balance, net of tax	(125)	(128)	(120)	(126)
Accumulated Net Gains (Losses) on Available-for-Sale Securities [Member]
OCI before reclassifications	(2)
OCI Balance	(2)
OCI Balance, net of tax	(2)
Balance		2	2	2
Balance, net of tax		2	2	2
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
OCI before reclassifications	122	(33)	(117)
Amounts reclassified from AOCI	(30)	9	170
OCI Balance	92	(24)	53
OCI Balance, net of tax	92	(24)	53
Balance	45	(47)	(23)	(76)
Balance, net of tax	$ 45	$ (47)	$ (23)	$ (76)

Shareholders' Equity - Schedule

Shareholders' Equity - Schedule of Items Reclassified Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	$ 5,079	$ 4,518	$ 4,565
Selling, general and administrative	(983)	(911)	(897)
Research and development	(1,302)	(1,336)	(1,425)
Income (loss) on equity-method investments	(2)	7	2
Income tax benefit (expense)	(143)	(31)	21
Net income	810	170	110
Attributable to noncontrolling interest	(8)	(5)	(6)
Attributable to the Company's stockholders	802	165	104
Reclassification Out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	22	(20)	(168)
Attributable to noncontrolling interest	0	0	0
Attributable to the Company's stockholders	22	(20)	(168)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	30	(9)	(170)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Foreign Exchange Contract [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	16	(7)	(105)
Selling, general and administrative	3		(14)
Research and development	11	(2)	(51)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Amortization of Actuarial Gains (Losses) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	1	1
Selling, general and administrative	(4)	(8)	(5)
Research and development	(5)	(6)	(6)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Research and development			(1)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plan Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit (expense)	2	4	4
Net income	$ (8)	$ (11)	(8)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) on equity-method investments			10
Net income			$ 10

Earnings per Share - Summary of

Earnings per Share - Summary of Earnings per Share ("EPS") (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic EPS
Net income (loss) attributable to parent company	$ 802	$ 165	$ 104
Weighted average shares outstanding	884,707,764	881,246,870	876,510,959
Basic EPS	$ 0.91	$ 0.19	$ 0.12
Diluted EPS
Net income (loss) attributable to parent company adjusted	$ 802	$ 165	$ 104
Weighted average shares outstanding	884,707,764	881,246,870	876,510,959
Dilutive effect of stock awards	7,459,507	5,003,573	4,043,813
Dilutive effect of convertible debt	13,918,602
Number of shares used in calculating diluted EPS	906,085,873	886,250,443	880,554,772
Diluted EPS	$ 0.89	$ 0.19	$ 0.12

Other Income and Expenses, N107

Other Income and Expenses, Net - Other Income and Expenses, Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Income and Expenses [Abstract]
Research and development funding	$ 65	$ 94	$ 144
Phase-out and start-up costs	(8)	(2)	(5)
Exchange gain, net	4	5	2
Patent costs, net of reversal of unused provisions	(9)	(5)	3
Gain on sale of businesses and non-current assets	4	2	18
Other, net	(1)	5	2
Total	$ 55	$ 99	$ 164

Other Income and Expenses, N108

Other Income and Expenses, Net - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Other Income and Expenses [Abstract]
Income recognition accrual amount	$ 33	$ 0

Impairment, Restructuring Ch109

Impairment, Restructuring Charges and Other Related Closure Costs - Summary of Impairment, Restructuring Charges and Other Related Closure Costs (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Impairment	$ (13,000,000)	$ 0	$ (8,000,000)	$ (16,000,000)
Restructuring charges		(42,000,000)	(75,000,000)	(37,000,000)
Other related closure costs		(3,000,000)	(10,000,000)	(12,000,000)
Total impairment, restructuring charges and other related closure costs		(45,000,000)	(93,000,000)	(65,000,000)
Set-top Box Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		(34,000,000)	(74,000,000)
Other related closure costs			(9,000,000)
Total impairment, restructuring charges and other related closure costs		(34,000,000)	(83,000,000)
EPS Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		5,000,000	(1,000,000)	(36,000,000)
Total impairment, restructuring charges and other related closure costs		5,000,000	(1,000,000)	(36,000,000)
Long-lived Asset Impairment Charge [Member]
Restructuring Cost and Reserve [Line Items]
Impairment			(8,000,000)	(16,000,000)
Total impairment, restructuring charges and other related closure costs			(8,000,000)	(16,000,000)
$600-650 Million Net Opex Plan [Member]
Restructuring Cost and Reserve [Line Items]
Other related closure costs		(3,000,000)	(1,000,000)	(2,000,000)
Total impairment, restructuring charges and other related closure costs		(3,000,000)	$ (1,000,000)	(2,000,000)
Manufacturing Consolidation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges				(1,000,000)
Other related closure costs				(10,000,000)
Total impairment, restructuring charges and other related closure costs				$ (11,000,000)
Other Restructuring Initiatives [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		(13,000,000)
Total impairment, restructuring charges and other related closure costs		$ (13,000,000)

Impairment, Restructuring Ch110

Impairment, Restructuring Charges and Other Related Closure Costs - Additional Information (Detail)	3 Months Ended	12 Months Ended
	Sep. 30, 2015USD ($)	Dec. 31, 2017USD ($)Employees	Dec. 31, 2016USD ($)Employees	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)Employees	Dec. 31, 2013USD ($)
Restructuring Cost and Reserve [Line Items]
Impairment charges	$ 13,000,000	$ 0	$ 8,000,000	$ 16,000,000
Number of employees affected | Employees		300
Restructuring charges and other related closure costs		$ 13,000,000	85,000,000	49,000,000
Expected payment		46,000,000	49,000,000
Restructuring charges and other related closure costs		51,000,000
Other Acquired Intangible Assets [Member]
Restructuring Cost and Reserve [Line Items]
Impairment charges			4,000,000	3,000,000
Long-lived Asset Impairment Charge [Member]
Restructuring Cost and Reserve [Line Items]
Impairment charges			3,000,000
$600-650 Million Net Opex Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs					$ 118,000,000
$600-650 Million Net Opex Plan [Member] | Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Net operating expenses						$ 600,000,000
$600-650 Million Net Opex Plan [Member] | Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Net operating expenses						$ 650,000,000
$600-650 Million Net Opex Plan [Member] | Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs			1,000,000	2,000,000
EPS Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected | Employees					450
Restructuring charges and other related closure costs			$ 1,000,000	36,000,000
Pre-tax charges incurred				62,000,000
Manufacturing Consolidation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs		0		11,000,000
Pre-tax charges incurred				31,000,000
Manufacturing Consolidation [Member] | Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs				1,000,000
Manufacturing Consolidation [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs				$ 10,000,000
Set-top Box Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected | Employees			1,400
Restructuring charges and other related closure costs		170,000,000	$ 83,000,000
Restructuring Charges recorded		34,000,000
Pre-tax charges incurred		117,000,000
Set-top Box Restructuring Plan [Member] | France [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected | Employees			430
Set-top Box Restructuring Plan [Member] | Asia [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected | Employees			670
Set-top Box Restructuring Plan [Member] | USA [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected | Employees			120
Set-top Box Restructuring Plan [Member] | Employee Termination Benefits [Member] | France [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs		$ 34,000,000

Impairment, Restructuring Ch111

Impairment, Restructuring Charges and Other Related Closure Costs - Changes to Restructuring Provisions Recorded on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	$ 54	$ 34
Charges incurred	52	85
Adjustment for unused provisions	(7)
Amounts paid	(51)	(59)
Liability settlement		(3)
Currency translation effect	4	(3)
Provision, ending balance	52	54
Set-top Box Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	37
Charges incurred	36	83
Adjustment for unused provisions	(2)
Amounts paid	(36)	(46)
Currency translation effect	4
Provision, ending balance	39	37
$600-650 Million Net Opex Plan [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	5	6
Charges incurred	3	1
Amounts paid	(1)	(1)
Currency translation effect		(1)
Provision, ending balance	7	5
Manufacturing Consolidation [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance		1
Amounts paid		(1)
EPS Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	8	18
Charges incurred		1
Adjustment for unused provisions	(5)
Amounts paid		(10)
Currency translation effect		(1)
Provision, ending balance	3	8
Other Restructuring Initiatives [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	4	9
Charges incurred	13
Amounts paid	(14)	(1)
Liability settlement		(3)
Currency translation effect		(1)
Provision, ending balance	$ 3	$ 4

Interest Expense, Net - Summary

Interest Expense, Net - Summary of Interest Expense, Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Income	$ 30	$ 20	$ 18
Expense	(52)	(40)	(40)
Total	$ (22)	$ (20)	$ (22)

Interest Expense, Net - Additio

Interest Expense, Net - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net Investment Income [Line Items]
Capitalized borrowing cost	$ 0	$ 0	$ 0
Senior Unsecured Convertible Debt [Member]
Net Investment Income [Line Items]
Interest expense	37,000,000	25,000,000	24,000,000
Non-cash interest expense accretion of discount on liability component	$ 33,000,000	$ 21,000,000	20,000,000
Issued date of senior unsecured convertible bonds	Jul. 31, 2017	Jul. 31, 2014
Floating Rate Notes [Member]
Net Investment Income [Line Items]
Interest income (expense), net	$ 6,000,000	$ 6,000,000	$ 6,000,000

Income Tax - Income (Loss) befo

Income Tax - Income (Loss) before Income Tax (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income (loss) recorded in The Netherlands	$ (17)	$ (10)	$ (18)
Income (loss) from foreign operations	970	211	107
Income (loss) before income taxes and noncontrolling interest	$ 953	$ 201	$ 89

Income Tax - Income Tax Benefit

Income Tax - Income Tax Benefit (Expense) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
The Netherlands Taxes - current	$ (1)	$ (2)	$ 5
Foreign taxes - current	(101)	(69)	(43)
Total current taxes	(102)	(71)	(38)
The Netherlands Taxes - deferred	0	0	0
Foreign taxes - deferred	(41)	40	59
Total deferred taxes	(41)	40	59
Income tax benefit (expense)	$ (143)	$ (31)	$ 21
Effective tax rate	15.00%	15.00%	(24.00%)

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Netherlands statutory income taxes rate			25.00%	25.00%	25.00%
Effect of the tax benefits on basic earnings per share			$ 0.13	$ 0.05	$ 0.05
Maximum percentage of tax reduction from tax holidays			100.00%	100.00%	100.00%
Income tax holiday expiration date			Dec. 31, 2022
Legal inflationary index				0.13%
Deferred tax benefit (expense) recorded as component of other comprehensive income (loss)			$ (1)	$ (1)
Cumulative amount of distributable earnings	$ 1,893	$ 1,046	1,893	1,046
Unrecognized tax benefits	235	195	235	195
Accrued interest and penalties related to uncertain tax positions		1		$ 1	$ 1	$ 27
Interest and penalties of unrecognized tax benefits	10	$ 9
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Accrued interest and penalties related to uncertain tax positions	$ 1		$ 1
Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax year			1,997
Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax year			2,017

Income Tax - Differences in Inc

Income Tax - Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax benefit (expense) computed at statutory rate	$ (238)	$ (51)	$ (23)
Non-deductible and non-taxable permanent differences, net	17	5	(18)
Income (loss) on equity-method investments		2
Valuation allowance adjustments	92	10	1
Effect on deferred taxes of changes in enacted tax rates	(70)	(9)	(15)
Current year credits	40	34	44
Other tax and credits	(36)	(25)	(2)
Benefits from tax holidays	114	49	42
Net impact of changes to uncertain tax positions	(43)	(22)	8
Earnings of subsidiaries taxed at different rates	(19)	(24)	(20)
Income tax benefit (expense)	$ (143)	$ (31)	$ 21

Income Tax - Deferred Tax Asset

Income Tax - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Tax loss carryforwards and investment credits	$ 740	$ 804
Less unrecognized tax benefit	(235)	(195)
Tax loss carryforwards net of unrecognized tax benefit	505	609
Inventory valuation	35	29
Impairment and restructuring charges	16	20
Fixed asset depreciation in arrears	32	34
Increased depreciation incentives	118
Capitalized development costs	101	91
Receivables for government funding	6	7
Tax credits granted on past capital investments	1,160	1,165
Pension service costs	65	68
Stock awards	5
Commercial accruals	11	19
Other temporary differences	99	92
Total deferred tax assets	2,153	2,134
Valuation allowances	(1,502)	(1,577)
Deferred tax assets, net	651	557
Accelerated fixed asset depreciation	(13)	(10)
Acquired intangible assets	(10)	(8)
Advances of government funding	(9)	(16)
Other temporary differences	(6)
Deferred tax liabilities	(38)	(34)
Net deferred income tax asset	$ 613	$ 523

Income Tax - Gross Deferred Tax

Income Tax - Gross Deferred Tax Assets on Tax Loss Carryforwards and Investment Credits Expiration (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
2,018	$ 4
2,019	78
2,020	14
2,021	3
2,022	7
Thereafter	634
Total	$ 740	$ 804

Income Tax - Reconciliation of

Income Tax - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Balance at beginning of year	$ 238	$ 226	$ 313
Additions based on tax positions related to the current year	43	34	38
Additions for tax positions of prior years	13	1
Reduction for tax positions of prior years	(9)	(13)	(48)
Settlements	(2)		(48)
Prepayment	(4)		(3)
Reductions due to lapse of statute of limitations		(4)	(1)
Foreign currency translation	31	(6)	(25)
Balance at end of year	$ 310	$ 238	$ 226

Commitments - Company's Commitm

Commitments - Company's Commitments (Detail) $ in Millions	Dec. 31, 2017USD ($)
Recorded Unconditional Purchase Obligation [Line Items]
Operating leases, Total	$ 227
Operating leases, 2018	55
Operating leases, 2019	40
Operating leases, 2020	32
Operating leases, 2021	21
Operating leases, 2022	13
Operating leases, Thereafter	66
Purchase obligations, Total	1,423
Purchase obligations, 2018	946
Purchase obligations, 2019	232
Purchase obligations, 2020	129
Purchase obligations, 2021	116
Purchase obligations, 2022	0
Purchase obligations, Thereafter	0
Other obligations, Total	324
Other obligations, 2018	161
Other obligations, 2019	98
Other obligations, 2020	41
Other obligations, 2021	15
Other obligations, 2022	6
Other obligations, Thereafter	3
Company's commitments, Total	1,974
Company's commitments, 2018	1,162
Company's commitments, 2019	370
Company's commitments, 2020	202
Company's commitments, 2021	152
Company's commitments, 2022	19
Company's commitments, Thereafter	69
Equipment Purchase [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligations, Total	774
Purchase obligations, 2018	684
Purchase obligations, 2019	90
Purchase obligations, 2022	0
Purchase obligations, Thereafter	0
Foundry Purchase [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligations, Total	557
Purchase obligations, 2018	198
Purchase obligations, 2019	123
Purchase obligations, 2020	120
Purchase obligations, 2021	116
Purchase obligations, 2022	0
Purchase obligations, Thereafter	0
Software, Design, Technologies and Licenses [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligations, Total	92
Purchase obligations, 2018	64
Purchase obligations, 2019	19
Purchase obligations, 2020	9
Purchase obligations, 2022	0
Purchase obligations, Thereafter	$ 0

Commitments - Additional Inform

Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Operating lease expense	$ 67	$ 56	$ 56

Financial Instruments and Ri123

Financial Instruments and Risk Management - Additional Information (Detail)	Jul. 28, 2016USD ($)	Oct. 10, 2017USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)Customer	Dec. 31, 2016USD ($)Customer	Dec. 31, 2015USD ($)	Jul. 03, 2014USD ($)	Jul. 03, 2017USD ($)
Derivative [Line Items]
Maximum percentage for Research and Development and Corporate costs of the total forecasted transactions				80.00%
Maximum percentage for manufacturing costs of forecasted transactions				70.00%
Maximum percentage for designated hedged item of forecasted transactions				100.00%
Hedge exposure to the variability of cash flows for forecasted transactions				24 months
Cost of sales				$ (5,079,000,000)	$ (4,518,000,000)	$ (4,565,000,000)
Realized gain (loss) on reduction in operating expenses				(14,000,000)	2,000,000	65,000,000
Ineffective portion of hedge was recorded on Other income and expenses, net				0	0	0
Deferred losses on derivative instrument, net of tax				$ 45,000,000
Period of Accumulated other comprehensive income (loss)				12 months
Amount reclassified as Other Income and Expenses, net				$ 0
Fair value of assets				41,000,000	2,000,000
Fair value of liabilities				$ 1,000,000	$ 45,000,000
Maximum outstanding amount per instrument with each Bank , as percentage of total				20.00%
Number of customer represented more than 10% of trade accounts receivable | Customer				0	0
Loss on financial instruments, net				$ (16,000,000)
Property, plant and equipment	$ 2,000,000
Goodwill	42,000,000			123,000,000	$ 116,000,000	76,000,000
Impairment charge on investments				$ 0	$ 0	$ 0
AMS [Member]
Derivative [Line Items]
Purchase consideration paid in cash	78,000,000
Acquisition-date fair value of a sales earn-out value, low	12,000,000
Acquisition-date fair value of a sales earn-out value, high	37,000,000
Property, plant and equipment	2,000,000
Goodwill	42,000,000
Technology [Member]
Derivative [Line Items]
Intangible assets	6,000,000
Technology [Member] | AMS [Member]
Derivative [Line Items]
Intangible assets	6,000,000
In-process R&D [Member]
Derivative [Line Items]
Intangible assets	40,000,000
In-process R&D [Member] | AMS [Member]
Derivative [Line Items]
Intangible assets	$ 40,000,000
Zero Coupon due 2019 (Tranche A) [Member]
Derivative [Line Items]
Debt discount rate			2.09%	2.09%		2.40%	2.40%
Interest rate							1.00%
1.0% due 2021 (Tranche B) [Member]
Derivative [Line Items]
Debt discount rate		2.47%		2.47%		3.22%	3.22%
Interest rate							1.00%
Zero-coupon, due 2022 (Tranche A) [Member]
Derivative [Line Items]
Debt discount rate				2.70%	2.70%
0.25%, due 2024 (Tranche B) [Member]
Derivative [Line Items]
Debt discount rate				3.28%	3.28%
Interest rate				0.25%
Fair Value, Inputs, Level 3 [Member]
Derivative [Line Items]
Fair value of liability component							$ 878,000,000	$ 1,266,000,000
Fair Value, Inputs, Level 3 [Member] | Zero Coupon due 2019 (Tranche A) [Member]
Derivative [Line Items]
Fair value of liability component			$ 574,000,000	$ 574,000,000
Loss on financial instruments, net			$ 5,000,000	5,000,000
Fair Value, Inputs, Level 3 [Member] | 1.0% due 2021 (Tranche B) [Member]
Derivative [Line Items]
Fair value of liability component		$ 370,000,000		370,000,000
Loss on financial instruments, net		$ 11,000,000		$ 11,000,000
Minimum [Member]
Derivative [Line Items]
Major customer percentage of trade accounts receivable				10.00%	10.00%
Foreign Exchange Contract [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member]
Derivative [Line Items]
Cost of sales				$ (16,000,000)	$ 7,000,000	$ 105,000,000
Currency Collars [Member]
Derivative [Line Items]
Fair value of net assets (liabilities)				14,000,000
Fair value of assets				13,000,000
Fair value of liabilities				1,000,000
Foreign Exchange Forward Contracts [Member]
Derivative [Line Items]
Fair value of assets				28,000,000
Fair value of liabilities				1,000,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount of Derivative Instruments				$ 644,000,000	375,000,000	372,000,000
Foreign currency forward contracts maturity term				19 days
Fair value of assets				$ 4,000,000	1,000,000
Fair value of liabilities				$ 1,000,000	2,000,000
Not Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms				3 days
Not Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms				162 days
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount of Derivative Instruments				$ 1,393,000,000	1,370,000,000	$ 1,449,000,000
Foreign currency forward contracts maturity term				113 days
Fair value of assets				$ 37,000,000	1,000,000
Fair value of liabilities					$ 43,000,000
Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms				3 days
Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms				12 months

Financial Instruments and Ri124

Financial Instruments and Risk Management - Notional Amounts of Outstanding Derivative Instruments (Detail) - Designated as Hedging Instrument [Member]	Dec. 31, 2017USD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2017SGD	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Derivative [Line Items]
Notional amount | $	$ 1,393,000,000			$ 1,370,000,000	$ 1,449,000,000
Foreign Exchange Forward Contracts [Member] | R&D and Other Operating Expense [Member]
Derivative [Line Items]
Notional amount		€ 237,000,000
Foreign Exchange Forward Contracts [Member] | Manufacturing Costs [Member]
Derivative [Line Items]
Notional amount		352,000,000	SGD 130,000,000
Currency Collars [Member] | R&D and Other Operating Expense [Member]
Derivative [Line Items]
Notional amount		208,000,000
Currency Collars [Member] | Manufacturing Costs [Member]
Derivative [Line Items]
Notional amount		€ 284,000,000

Financial Instruments and Ri125

Financial Instruments and Risk Management - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	$ 41	$ 2
Total Liability Derivatives	(1)	(45)
Foreign Exchange Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	28
Total Liability Derivatives	(1)
Currency Collars [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	13
Total Liability Derivatives	(1)
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	37	1
Total Liability Derivatives		(43)
Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	24	1
Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Other Payables and Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives		(31)
Designated as Hedging Instrument [Member] | Currency Collars [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	13
Designated as Hedging Instrument [Member] | Currency Collars [Member] | Other Payables and Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives		(11)
Designated as Hedging Instrument [Member] | Currency Collars [Member] | Other Long-term Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives		(1)
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	4	1
Total Liability Derivatives	(1)	(2)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	4	1
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | Other Payables and Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	$ (1)	$ (2)

Financial Instruments and Ri126

Financial Instruments and Risk Management - Effect on Consolidated Statements of Income of Derivative Instruments (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	$ 45	$ (47)
Gain (loss) reclassified from OCI into earnings	30	(9)
Foreign Exchange Forward Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	18	(24)
Gain (loss) reclassified from OCI into earnings	12	(5)
Foreign Exchange Forward Contracts [Member] | Selling, General and Administrative [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	2	(2)
Gain (loss) reclassified from OCI into earnings	2
Foreign Exchange Forward Contracts [Member] | Research and Development [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	7	(8)
Gain (loss) reclassified from OCI into earnings	8	(1)
Currency Collars [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	12	(8)
Gain (loss) reclassified from OCI into earnings	4	(2)
Currency Collars [Member] | Selling, General and Administrative [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	1	(1)
Gain (loss) reclassified from OCI into earnings	1
Currency Collars [Member] | Research and Development [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	5	(4)
Gain (loss) reclassified from OCI into earnings	$ 3	$ (1)

Financial Instruments and Ri127

Financial Instruments and Risk Management - Effect on Consolidated Statements of Income of Derivative Instruments Not Designated as Hedge (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange forward contracts	$ 6	$ (3)
Foreign Exchange Forward Contracts [Member] | Other Income and Expenses, Net [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange forward contracts	$ 6	$ (3)

Financial Instruments and Ri128

Financial Instruments and Risk Management - Schedule of Financial Assets (Liabilities) Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on business combinations	$ (12)	$ (12)
Total	479	299
Derivative Financial Instruments, Liabilities [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments		(43)
Derivative Financial Instruments, Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	(1)	(2)
U.S. Treasury Bonds/Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	431	335
Equity Securities [Member] | Available-for-Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	11	11
Equity Securities [Member] | Held-for-Trading Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	9	8
Derivative Financial Instruments, Assets [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	37	1
Derivative Financial Instruments, Assets [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	4	1
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	451	354
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Bonds/Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	431	335
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Available-for-Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	11	11
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Held-for-Trading Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	9	8
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	40	(43)
Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments		(43)
Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	(1)	(2)
Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	37	1
Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	4	1
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on business combinations	(12)	(12)
Total	$ (12)	$ (12)

Financial Risk Factors - Schedu

Financial Risk Factors - Schedule of Assets (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	$ (12)
Contingent consideration on business combination	0
Ending balance	(12)
Amount of total losses for the period included in earnings attributable to assets still held at the reporting date	$ 0

Financial Instruments and Ri130

Financial Instruments and Risk Management - Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 1,759	$ 1,629	$ 1,771	$ 2,017
Carrying Amount [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,303	960
Carrying Amount [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Unsecured Convertible Bonds [Member]
Long-term debt
Senior unsecured convertible bonds	1,278	926
Carrying Amount [Member] | Fair Value, Inputs, Level 2 [Member]
Long-term debt
Bank loans (including current portion)	423	525
Estimate Fair Value [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,303	960
Estimate Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Unsecured Convertible Bonds [Member]
Long-term debt
Senior unsecured convertible bonds	1,860	1,127
Estimate Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
Long-term debt
Bank loans (including current portion)	$ 423	$ 525

Financial Instruments and Ri131

Financial Instruments and Risk Management - Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost (Parenthetical) (Detail) - USD ($) $ in Millions	Jul. 03, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Conversion features of the instruments value	$ 242	$ 242	$ 121	$ 0

Financial Instruments and Ri132

Financial Instruments and Risk Management - Summary of Securities That Were in Unrealized Loss Position (Detail) $ in Millions	Dec. 31, 2017USD ($)
Schedule of Available-for-sale Securities [Line Items]
Fair Values, Less than 12 months	$ 332
Unrealized Losses, Less than 12 months	(1)
Fair Values, More than 12 months	0
Unrealized Losses, More than 12 months	0
Fair Values, Total	332
Unrealized Losses, Total	(1)
U.S. Treasury Bonds/Bills [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Values, Less than 12 months	332
Unrealized Losses, Less than 12 months	(1)
Fair Values, More than 12 months	0
Unrealized Losses, More than 12 months	0
Fair Values, Total	332
Unrealized Losses, Total	$ (1)

Related Party Transactions - Tr

Related Party Transactions - Transactions with Significant Shareholders, their Affiliates and Other Related Parties (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Sales & other services		$ 1	$ 7
Other purchases	$ 12	1	65
Accounts receivable	7	7	8
Accounts payable	$ 51	$ 51	$ 61

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ST Foundation [Member]
Related Party Transaction [Line Items]
Contributed cash amounts to ST Foundation	$ 500,000	$ 0	$ 500,000

Segment Information - Net Reven

Segment Information - Net Revenues by Product Segment and by Product Line (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net revenues	$ 8,347	$ 6,973	$ 6,897
Product Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	8,318	6,945	6,874
Automotive and Discrete Group (ADG) [Member] | Product Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	3,059	2,813	2,731
Analog, MEMS & Sensors Group (AMS) [Member] | Product Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	2,613	1,847	1,851
Microcontrollers and Digital ICs Group (MDG) [Member] | Product Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	2,646	2,285	2,292
Others [Member]
Segment Reporting Information [Line Items]
Net revenues	$ 29	$ 28	$ 23

Segment Information - Operating

Segment Information - Operating Income by Reportable Segment (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ 993	$ 214	$ 109
Product Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	1,056	365	250
Analog, MEMS & Sensors Group (AMS) [Member] | Product Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	365	46	27
Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	1,056	365	250
Operating Segments [Member] | Automotive and Discrete Group (ADG) [Member] | Product Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	289	211	194
Operating Segments [Member] | Microcontrollers and Digital ICs Group (MDG) [Member] | Product Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	402	108	29
Segment Reconciling Items [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	(63)	(151)	(141)
Segment Reconciling Items [Member] | Others [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ (63)	$ (151)	$ (141)

Segment Information - Reconcili

Segment Information - Reconciliation of Operating Income of Segments to Total Operating Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment, restructuring charges and other related closure costs	$ (45)	$ (93)	$ (65)
Operating income	993	214	109
Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	1,056	365	250
Segment Reconciling Items [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment, restructuring charges and other related closure costs	(45)	(93)	(65)
Unallocated manufacturing results	7	(33)	(69)
Strategic and other research and development programs and other non-allocated provisions	(25)	(25)	(7)
Operating income	$ (63)	$ (151)	$ (141)

Segment Information - Net Re138

Segment Information - Net Revenues (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 8,347	$ 6,973	$ 6,897
The Netherlands [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	2,223	1,751	1,667
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	123	134	169
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	60	58	58
USA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	1,012	990	1,039
Singapore [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	4,444	3,699	3,606
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	463	323	332
Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 22	$ 18	$ 26

Segment Information - Property,

Segment Information - Property, Plant & Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 3,094	$ 2,287
The Netherlands [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	588	462
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	603	520
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	719	445
Other European Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	83	84
USA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	6	6
Singapore [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	428	277
Malaysia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	200	166
Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 467	$ 327

Valuation and Qualifying Acc140

Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Trade Receivables [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 12	$ 7	$ 8
Charged to costs and expenses		3	2
Additions/ (Deductions)	3	2	(3)
Balance at end of period	15	12	7
Valuation Allowance of Deferred Tax Assets [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	1,578	1,585	1,607
Translation adjustment	24	(4)	(28)
Charged to costs and expenses	3	13	24
Additions/ (Deductions)	(103)	(16)	(18)
Balance at end of period	$ 1,502	$ 1,578	$ 1,585