Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | TEXAS INSTRUMENTS INC | ||
Entity Central Index Key | 97,476 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 983,787,502 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 76,179,967,734 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Revenue | $ 3,750 | $ 4,116 | $ 3,693 | $ 3,402 | $ 3,414 | $ 3,675 | $ 3,273 | $ 3,008 | $ 14,961 | $ 13,370 | $ 13,000 |
Cost of revenue (COR) | 5,347 | 5,113 | 5,425 | ||||||||
Gross profit | 2,440 | 2,656 | 2,374 | 2,144 | 2,137 | 2,284 | 2,007 | 1,829 | 9,614 | 8,257 | 7,575 |
Research and development (R&D) | 1,508 | 1,356 | 1,267 | ||||||||
Selling, general and administrative (SG&A) | 1,694 | 1,742 | 1,728 | ||||||||
Acquisition charges | 79 | 80 | 79 | 80 | 80 | 80 | 79 | 80 | 318 | 319 | 329 |
Restructuring charges/other | 3 | 1 | 3 | 4 | (20) | 1 | 2 | 2 | 11 | (15) | (71) |
Operating profit | 1,563 | 1,788 | 1,480 | 1,252 | 1,332 | 1,408 | 1,131 | 984 | 6,083 | 4,855 | 4,322 |
Other income (expense), net (OI&E) | 75 | 155 | (16) | ||||||||
Interest and debt expense | 78 | 80 | 90 | ||||||||
Income before income taxes | 6,080 | 4,930 | 4,216 | ||||||||
Provision for income taxes | 2,398 | 1,335 | 1,230 | ||||||||
Net income | $ 344 | $ 1,285 | $ 1,056 | $ 997 | $ 1,047 | $ 1,018 | $ 819 | $ 711 | $ 3,682 | $ 3,595 | $ 2,986 |
Earnings per common share (EPS): | |||||||||||
Basic (in dollars per share) | $ 0.35 | $ 1.29 | $ 1.05 | $ 0.99 | $ 1.04 | $ 1 | $ 0.81 | $ 0.70 | $ 3.68 | $ 3.54 | $ 2.86 |
Diluted (in dollars per share) | $ 0.34 | $ 1.26 | $ 1.03 | $ 0.97 | $ 1.02 | $ 0.98 | $ 0.79 | $ 0.69 | $ 3.61 | $ 3.48 | $ 2.82 |
Average shares outstanding (millions): | |||||||||||
Basic (in shares) | 991 | 1,003 | 1,030 | ||||||||
Diluted (in shares) | 1,012 | 1,021 | 1,043 | ||||||||
Cash dividends declared per common share (in dollars per share) | $ 2.12 | $ 1.64 | $ 1.40 | ||||||||
Net income | $ 344 | $ 1,285 | $ 1,056 | $ 997 | $ 1,047 | $ 1,018 | $ 819 | $ 711 | $ 3,682 | $ 3,595 | $ 2,986 |
Income allocated to RSUs | (33) | (44) | (42) | ||||||||
Income allocated to common stock for diluted EPS | $ 3,649 | $ 3,551 | $ 2,944 |
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 | $ 3,682 | $ 3,595 | $ 2,986 |
Net actuarial losses of defined benefit plans: | |||
Adjustment, net of tax effect of ($26), $6 and $36 | 92 | (43) | (74) |
Recognized within Net income, net of tax effect of ($27), ($25) and ($25) | 56 | 51 | 53 |
Prior service credit of defined benefit plans: | |||
Adjustment, net of tax effect of $1, $0 and ($11) | (2) | 0 | 20 |
Recognized within Net income, net of tax effect of $1, $2 and $0 | (5) | (3) | 0 |
Derivative instruments: | |||
Recognized within Net income, net of tax effect of $0, $0 and ($1) | 1 | 1 | 1 |
Other comprehensive income (loss), net of taxes | 142 | 6 | 0 |
Total comprehensive income | $ 3,824 | $ 3,601 | $ 2,986 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income | |||
Net actuarial losses of defined benefit plans adjustment, tax effect | $ (26) | $ 6 | $ 36 |
Net actuarial losses of defined benefit plans recognized within Net income, tax effect | (27) | (25) | (25) |
Prior service credit of defined benefit plans adjustment, tax effect | 1 | 0 | (11) |
Prior service credit of defined benefit plans recognized within Net income, tax effect | 1 | 2 | 0 |
Derivative instruments recognized within Net income, tax effect | $ 0 | $ 0 | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,656 | $ 1,154 |
Short-term investments | 2,813 | 2,336 |
Accounts receivable, net of allowances of ($8) and ($17) | 1,278 | 1,267 |
Raw materials | 126 | 102 |
Work in process | 1,089 | 954 |
Finished goods | 742 | 734 |
Inventories | 1,957 | 1,790 |
Prepaid expenses and other current assets | 1,030 | 910 |
Total current assets | 8,734 | 7,457 |
Property, plant and equipment at cost | 4,789 | 4,923 |
Accumulated depreciation | (2,125) | (2,411) |
Property, plant and equipment | 2,664 | 2,512 |
Long-term investments | 268 | 235 |
Goodwill | 4,362 | 4,362 |
Acquisition-related intangibles | 946 | 1,264 |
Deferred tax assets | 264 | 374 |
Capitalized software licenses | 110 | 52 |
Overfunded retirement plans | 208 | 96 |
Other long-term assets | 86 | 79 |
Total assets | 17,642 | 16,431 |
Current liabilities: | ||
Current portion of long-term debt | 500 | 631 |
Accounts payable | 466 | 396 |
Accrued compensation | 722 | 710 |
Income taxes payable | 128 | 83 |
Accrued expenses and other liabilities | 442 | 444 |
Total current liabilities | 2,258 | 2,264 |
Long-term debt | 3,577 | 2,978 |
Underfunded retirement plans | 89 | 129 |
Deferred tax liabilities | 78 | 33 |
Other long-term liabilities | 1,303 | 554 |
Total liabilities | 7,305 | 5,958 |
Stockholders’ equity: | ||
Preferred stock, $25 par value. Authorized - 10,000,000 shares Participating cumulative preferred. None issued. | 0 | 0 |
Common stock, $1 par value. Authorized - 2,400,000,000 shares Shares issued - 1,740,815,939 | 1,741 | 1,741 |
Paid-in capital | 1,776 | 1,674 |
Retained earnings | 34,662 | 33,107 |
Treasury common stock at cost Shares: 2017 – 757,657,217; 2016 – 744,831,978 | (27,458) | (25,523) |
Accumulated other comprehensive income (loss), net of taxes (AOCI) | (384) | (526) |
Total stockholders’ equity | 10,337 | 10,473 |
Total liabilities and stockholders’ equity | $ 17,642 | $ 16,431 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Allowance for doubtful accounts receivable, current | $ 8 | $ 17 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 2,400,000,000 | 2,400,000,000 |
Common stock, shares issued (in shares) | 1,740,815,939 | 1,740,815,939 |
Treasury stock (in shares) | 757,657,217 | 744,831,978 |
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 | $ 3,682 | $ 3,595 | $ 2,986 | |
Adjustments to Net income: | ||||
Depreciation | 539 | 605 | 766 | |
Amortization of acquisition-related intangibles | 318 | 319 | 319 | |
Amortization of capitalized software | 47 | 31 | 48 | |
Stock compensation | 242 | 252 | 286 | |
Gains on sales of assets | 0 | (40) | (85) | |
Deferred taxes | 112 | (202) | (55) | |
Increase (decrease) from changes in: | ||||
Accounts receivable | (7) | (108) | 77 | |
Inventories | (167) | (99) | 93 | |
Prepaid expenses and other current assets | 76 | (81) | 94 | |
Accounts payable and accrued expenses | 51 | 72 | (142) | |
Accrued compensation | (3) | 36 | 7 | |
Income taxes payable | 468 | 333 | 11 | |
Changes in funded status of retirement plans | 21 | (73) | (23) | |
Other | (16) | (26) | 15 | |
Cash flows from operating activities | 5,363 | 4,614 | 4,397 | |
Cash flows from investing activities | ||||
Capital expenditures | (695) | (531) | (551) | |
Proceeds from asset sales | 40 | 0 | 110 | |
Purchases of short-term investments | (4,555) | (3,503) | (2,767) | |
Proceeds from short-term investments | 4,095 | 3,390 | 2,892 | |
Other | (12) | (6) | 14 | |
Cash flows from investing activities | (1,127) | (650) | (302) | |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 1,099 | 499 | 498 | |
Repayment of debt | (625) | (1,000) | (1,000) | |
Dividends paid | (2,104) | (1,646) | (1,444) | |
Stock repurchases | (2,556) | (2,132) | (2,741) | |
Proceeds from common stock transactions | [1] | 483 | 472 | 396 |
Other | (31) | (3) | (3) | |
Cash flows from financing activities | (3,734) | (3,810) | (4,294) | |
Net change in Cash and cash equivalents | 502 | 154 | (199) | |
Cash and cash equivalents at beginning of period | 1,154 | 1,000 | 1,199 | |
Cash and cash equivalents at end of period | $ 1,656 | $ 1,154 | $ 1,000 | |
[1] | Net of taxes paid for employee shares withheld of $83 million in 2017, $70 million in 2016 and $46 million in 2015. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Retained Earnings | Treasury Common Stock | AOCI |
Balance at Dec. 31, 2014 | $ 1,741 | $ 1,368 | $ 29,653 | $ (21,840) | $ (532) | |
Net income | $ 2,986 | 0 | 0 | 2,986 | 0 | 0 |
Dividends declared and paid ($1.40, $1.64 and $2.12 per share in 2015, 2016, and 2017) | 0 | 0 | (1,444) | 0 | 0 | |
Common stock issued for stock-based awards | 0 | (116) | 0 | 513 | 0 | |
Stock repurchases | 0 | 0 | 0 | (2,741) | 0 | |
Stock compensation | 0 | 286 | 0 | 0 | 0 | |
Excess tax benefit for stock compensation | 0 | 90 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | 0 | 0 | 0 |
Dividend equivalents paid on restricted stock units | 0 | 0 | (19) | 0 | 0 | |
Other | 0 | 1 | 0 | 0 | 0 | |
Balance at Dec. 31, 2015 | 1,741 | 1,629 | 31,176 | (24,068) | (532) | |
Net income | 3,595 | 0 | 0 | 3,595 | 0 | 0 |
Dividends declared and paid ($1.40, $1.64 and $2.12 per share in 2015, 2016, and 2017) | 0 | 0 | (1,646) | 0 | 0 | |
Common stock issued for stock-based awards | 0 | (204) | 0 | 677 | 0 | |
Stock repurchases | 0 | 0 | 0 | (2,132) | 0 | |
Stock compensation | 0 | 252 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of taxes | 6 | 0 | 0 | 0 | 0 | 6 |
Dividend equivalents paid on restricted stock units | 0 | 0 | (18) | 0 | 0 | |
Other | 0 | (3) | 0 | 0 | 0 | |
Balance at Dec. 31, 2016 | 10,473 | 1,741 | 1,674 | 33,107 | (25,523) | (526) |
Net income | 3,682 | 0 | 0 | 3,682 | 0 | 0 |
Dividends declared and paid ($1.40, $1.64 and $2.12 per share in 2015, 2016, and 2017) | 0 | 0 | (2,104) | 0 | 0 | |
Common stock issued for stock-based awards | 0 | (138) | 0 | 621 | 0 | |
Stock repurchases | 0 | 0 | 0 | (2,556) | 0 | |
Stock compensation | 0 | 242 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of taxes | 142 | 0 | 0 | 0 | 0 | 142 |
Dividend equivalents paid on restricted stock units | 0 | 0 | (17) | 0 | 0 | |
Other | 0 | (2) | (6) | 0 | 0 | |
Balance at Dec. 31, 2017 | $ 10,337 | $ 1,741 | $ 1,776 | $ 34,662 | $ (27,458) | $ (384) |
Consolidated Statements of Sto9
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends declared per common share (in dollars per share) | $ 2.12 | $ 1.64 | $ 1.40 |
Description of Business, Includ
Description of Business, Including Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Description of business, including segment and geographic area information | 1. Description of business, including segment and geographic area information We design, make and sell semiconductors to electronics designers and manufacturers all over the world. Beginning January 2017, we reorganized the product lines within our reportable segments – Analog and Embedded Processing – to align our business structure with the way our customers select and buy products. These changes had no effect on either our previously reported consolidated financial statements or our reportable segment amounts. Our two • Analog – consisting of the following product lines: Power, Signal Chain and High Volume. • Embedded Processing – consisting of the following product lines: Connected Microcontrollers and Processors. We report the results of our remaining business activities in Other. Other includes operating segments that do not meet the quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments. Other includes DLP ® In Other, we also include items that are not used in evaluating the results of or in allocating resources to our segments. Examples of these items include Acquisition charges (see Note 13); restructuring charges (see Note 3); and certain corporate-level items, such as litigation expenses, environmental costs, insurance settlements, and gains and losses from other activities, including asset dispositions. We allocate the remainder of our expenses associated with corporate activities to our operating segments based on specific methodologies, such as percentage of operating expenses or headcount. Our centralized manufacturing and support organizations, such as facilities, procurement and logistics, provide support to our operating segments, including those in Other. Costs incurred by these organizations, including depreciation, are charged to the segments on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the segments’ results and, therefore, is not provided. With the exception of goodwill, we do not identify or allocate assets by operating segment, nor does the chief operating decision maker evaluate operating segments using discrete asset information. We have no material intersegment revenue. The accounting policies of the segments are the same as those described below in the summary of significant accounting policies and practices. Segment information For Years Ended December 31, 2017 2016 2015 Revenue: Analog $ 9,900 $ 8,536 $ 8,339 Embedded Processing 3,498 3,023 2,787 Other 1,563 1,811 1,874 Total revenue $ 14,961 $ 13,370 $ 13,000 Operating profit: Analog $ 4,468 $ 3,416 $ 3,077 Embedded Processing 1,143 817 611 Other 472 622 634 Total operating profit $ 6,083 $ 4,855 $ 4,322 Operating profit in the prior periods has been recast as a result of our early adoption of a new accounting standard related to pension and other retiree benefit costs. See Note 2 for additional information. Geographic area information The following geographic area information includes revenue, based on product shipment destination, and property, plant and equipment, based on physical location. The revenue information is not necessarily indicative of the geographic area in which the end applications containing our products are ultimately consumed because our products tend to be shipped to the locations where our customers manufacture their products. Specifically, many of our products are shipped to our customers in China who may include these parts in the manufacture of their own end products, which they may in turn export to their customers around the world. For Years Ended December 31, 2017 2016 2015 Revenue: United States $ 1,901 $ 1,682 $ 1,612 Asia (a) 8,824 8,024 7,910 Europe, Middle East and Africa 2,907 2,393 2,163 Japan 1,049 1,040 1,127 Rest of world 280 231 188 Total revenue $ 14,961 $ 13,370 $ 13,000 (a) Revenue from products shipped into China, including Hong Kong, was $6.6 billion in 2017, $6.0 billion in 2016 and $5.8 billion in 2015. December 31, 2017 2016 2015 Property, plant and equipment: United States $ 1,469 $ 1,372 $ 1,370 Asia (a) 964 908 958 Europe, Middle East and Africa 97 98 130 Japan 118 115 122 Rest of world 16 19 16 Total property, plant and equipment $ 2,664 $ 2,512 $ 2,596 (a) Property, plant and equipment at our two sites |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation and significant accounting policies and practices | 2. Basis of presentation and significant accounting policies and practices Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The basis of these financial statements is comparable for all periods presented herein, except for the adoption of a new accounting standard in 2016 related to stock compensation, which included certain provisions applied prospectively. The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All dollar amounts in the financial statements and tables in these notes, except per-share amounts, are stated in millions of U.S. dollars unless otherwise indicated. We have reclassified certain amounts in the prior periods’ financial statements to conform to the 2017 presentation, retrospectively applying the new accounting standard related to pension and other retiree benefit costs. See Changes in accounting standards – adopted standards for current period The preparation of financial statements requires the use of estimates from which final results may vary. Significant accounting policies and practices Revenue recognition We recognize revenue from sales of our products, including sales to our distributors, when title and risk of loss pass, which usually occurs upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order; when persuasive evidence of an arrangement exists; when sales amounts are fixed or determinable; and when collectability is reasonably assured. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. Revenue from sales of our products that are subject to inventory consignment agreements, including consignment arrangements with distributors, is recognized in accordance with the principles discussed above. Delivery occurs when the customer or distributor pulls product from consignment inventory that we store at designated locations. We recognize revenue net of allowances, which are management’s estimates of future credits to be granted to customers or distributors under programs common in the semiconductor industry. These allowances, which are not material, generally include special pricing arrangements, product returns due to quality issues and incentives designed to maximize growth opportunities. Allowances are based on analysis of historical data and contractual terms and are recorded when revenue is recognized. We believe we can reasonably and reliably estimate allowances for credits to distributors in a timely manner. In addition, we record allowances for accounts receivable that we estimate may not be collected. We monitor collectability of accounts receivable primarily through review of the accounts receivable aging. When collection is at risk, we assess the impact on amounts recorded for bad debts and, if necessary, will record a charge in the period such determination is made. We recognize in revenue shipping fees, if any, received from customers. We include shipping and handling costs in COR. The majority of our customers pay these fees directly to third parties. Advertising costs We expense advertising and other promotional costs as incurred. This expense was $39 million in 2017, $44 million $46 million Income taxes We account for income taxes using an asset and liability approach. We record the amount of taxes payable or refundable for the current year and the deferred tax assets and liabilities for future tax consequences of events that have been recognized in the financial statements or tax returns. We record a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. Other assessed taxes Some transactions require us to collect taxes such as sales, value-added and excise taxes from our customers. These transactions are presented in our Consolidated Statements of Income on a net (excluded from revenue) basis. Earnings per share (EPS) Unvested share-based payment awards that contain non-forfeitable rights to receive dividends or dividend equivalents, such as our restricted stock units (RSUs), are considered to be participating securities and the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of Net income is allocated to these participating securities and, therefore, is excluded from the calculation of EPS allocated to common stock, as shown in the table below. Computation and reconciliation of earnings per common share are as follows (shares in millions): For Years Ended December 31, 2017 2016 2015 Net Net Net Income Shares EPS Income Shares EPS Income Shares EPS Basic EPS: Net income $ 3,682 $ 3,595 $ 2,986 Income allocated to RSUs (34 ) (45 ) (43 ) Income allocated to common stock for basic EPS calculation $ 3,648 991 $ 3.68 $ 3,550 1,003 $ 3.54 $ 2,943 1,030 $ 2.86 Adjustment for dilutive shares: Stock compensation plans 21 18 13 Diluted EPS: Net income $ 3,682 $ 3,595 $ 2,986 Income allocated to RSUs (33 ) (44 ) (42 ) Income allocated to common stock for diluted EPS calculation $ 3,649 1,012 $ 3.61 $ 3,551 1,021 $ 3.48 $ 2,944 1,043 $ 2.82 Potentially dilutive securities representing 6 million and 12 million 2015, respectively, Investments We present investments on our Consolidated Balance Sheets as cash equivalents, short-term investments or long-term investments, which are detailed as follows: • Cash equivalents and short-term investments – We consider investments in debt securities with maturities of 90 days or less from the date of our investment to be cash equivalents. We consider investments in debt securities with maturities beyond 90 days from the date of our investment as being available for use in current operations and include them in short-term investments. The primary objectives of our cash equivalent and short-term investment activities are to preserve capital and maintain liquidity while generating appropriate returns. • Long-term investments – Long-term investments consist of mutual funds, venture capital funds and non-marketable equity securities. • Classification of investments – Depending on our reasons for holding the investment and our ownership percentage, we classify our investments as either available for sale, trading, equity method or cost method, which are more fully described in Note 8. We determine cost or amortized cost, as appropriate, on a specific identification basis. Inventories Inventories are stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates cost on a first-in first-out basis. Standard cost is based on the normal utilization of installed factory capacity. Cost associated with underutilization of capacity is expensed as incurred. Inventory held at consignment locations is included in our finished goods inventory. Consigned inventory was $303 million and $334 million December 31, 2017 We review inventory quarterly for salability and obsolescence. A statistical allowance is provided for inventory considered unlikely to be sold. The statistical allowance is based on an analysis of historical disposal activity, historical customer shipments, as well as estimated future sales. A specific allowance for each material type will be carried if there is a significant event not captured by the statistical allowance. We write off inventory in the period in which disposal occurs. Property, plant and equipment; acquisition-related intangibles; and other capitalized costs Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Our cost basis includes certain assets acquired in business combinations that were initially recorded at fair value as of the date of acquisition. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. We amortize acquisition-related intangibles on a straight-line basis over the estimated economic life of the assets. Capitalized software licenses generally are amortized on a straight-line basis over the term of the license. Fully depreciated or amortized assets are written off against accumulated depreciation or amortization. Impairments of long-lived assets We regularly review whether facts or circumstances exist that indicate the carrying values of property, plant and equipment or other long-lived assets, including intangible assets, are impaired. We assess the recoverability of assets by comparing the projected undiscounted net cash flows associated with those assets to their respective carrying amounts. Any impairment charge is based on the excess of the carrying amount over the fair value of those assets. Fair value is determined by available market valuations, if applicable, or by discounted cash flows. Goodwill and indefinite-lived intangibles Goodwill is not amortized but is reviewed for impairment annually or more frequently if certain impairment indicators arise. We perform our annual goodwill impairment test as of October 1 for our reporting units, which compares the fair value for each reporting unit to its associated carrying value, including goodwill. See Note 9 for additional information. Foreign currency The functional currency for our non-U.S. subsidiaries is the U.S. dollar. Accounts recorded in currencies other than the U.S. dollar are remeasured into the functional currency. Current assets (except inventories), deferred taxes, other assets, current liabilities and long-term liabilities are remeasured at exchange rates in effect at the end of each reporting period. Property, plant and equipment with associated depreciation and inventories are valued at historical exchange rates. Revenue and expense accounts other than depreciation for each month are remeasured at the appropriate daily rate of exchange. Currency exchange gains and losses from remeasurement are credited or charged to OI&E. Derivatives and hedging We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions have not been material. We do not use derivatives for speculative or trading purposes. Changes in accounting standards – adopted standards for current period Accounting Standards Update (ASU) No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory This standard requires current and deferred taxes resulting from the intra-entity transfer of any assets other than inventory to be recognized for financial reporting purposes when the transfer occurs rather than postpone recognition until the asset has been sold to an outside party, as currently allowed. This standard is required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings and is effective for interim and annual periods beginning January 1, 2018. We elected to adopt this standard in the first quarter of 2017. The effect on our financial position and results of operations was not material. ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard amends the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement plans. This standard requires us to: (1) disaggregate the current service cost component from the other components of net periodic benefit cost (the “other components”) and present it in the same line items on the statement of income as other current compensation costs for related employees and (2) present the other components outside of operating profit (i.e., in OI&E). This standard is required to be applied retrospectively and is effective for interim and annual periods beginning January 1, 2018. We elected to adopt this standard as of January 1, 2017. Adoption of this standard did not impact Revenue, Net income, Earnings per common share or Cash flows from operating activities. The following components on the Consolidated Statements of Income were affected: For The Years Ended December 31, 2016 2015 Reported Recast Reported Recast COR $ 5,130 $ 5,113 $ 5,440 $ 5,425 Gross profit 8,240 8,257 7,560 7,575 R&D 1,370 1,356 1,280 1,267 SG&A 1,767 1,742 1,748 1,728 Operating profit: Analog 3,380 3,416 3,048 3,077 Embedded Processing 801 817 596 611 Other 618 622 630 634 Total operating profit 4,799 4,855 4,274 4,322 OI&E 211 155 32 (16 ) Changes in accounting standards – standards not yet adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures, which we are currently evaluating. It is effective for interim and annual reporting periods beginning January 1, 2018. This standard permits early adoption and the use of either the retrospective or cumulative-effect transition method. We plan on adopting this standard using the cumulative-effect (i.e., modified retrospective) transition method, which will result in an adjustment to retained earnings for the cumulative effect of applying this guidance to contracts in process as of January 1, 2018. Under this approach, we will not restate the prior financial statements presented. Based on our current assessment, we do not expect the new standard to have a material impact on our financial position and results of operations, as it is not expected to materially change the manner or timing in which we recognize revenue. We recognize revenue on sales to customers and distributors upon satisfaction of our performance obligations when the goods are shipped. For consignment sales, we recognize revenue when the goods are pulled from consignment inventory. Beginning January 1, 2017, we no longer recognize in revenue royalty income from licensing our patent portfolios; however, we are still required to apply the recognition, measurement and disclosure provisions of this new standard to our royalty income. We believe the most significant impact of the new standard will be to accelerate the timing of recognizing royalty income in OI&E, although the effect of such change on the results of operations and financial position recognized in any individual reporting period is not expected to be material. This change will have no effect on the recognition and timing of cash flows over any affected periods. ASU No. 2016-02, Leases (Topic 842) This standard requires all leases that have a term of over 12 months to be recognized on the balance sheet with the liability for lease payments and the corresponding right-of-use asset initially measured at the present value of amounts expected to be paid over the term. Recognition of the costs of these leases on the income statement will be dependent upon their classification as either an operating or a financing lease. Costs of an operating lease will continue to be recognized as a single operating expense on a straight-line basis over the lease term. Costs for a financing lease will be disaggregated and recognized as both an operating expense (for the amortization of the right-of-use asset) and interest expense (for interest on the lease liability). This standard will be effective for our interim and annual periods beginning January 1, 2019, and must be applied on a modified retrospective basis to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We do not plan to adopt this standard early. We are currently evaluating the potential impact of this standard on our financial position, but we do not expect it to have a material impact on our results of operations. ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that expand disclosures. This standard will be effective for our interim and annual periods beginning January 1, 2020, and permits earlier application but not before periods beginning January 1, 2019. The standard will be applied using a modified retrospective approach. We are currently evaluating the potential impact of this standard, but we do not expect it to have a material impact on our financial position and results of operations. Other standards We do not expect the following standards to have a material impact on our financial position and results of operations. We plan to adopt these standards as of their effective dates. ASU Description Effective Date ASU No. 2016-01 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities January 1, 2018 ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business January 1, 2018 ASU No. 2017-05 Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets January 1, 2018 ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 |
Restructuring Charges_Other
Restructuring Charges/Other | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring charges/other | 3. Restructuring charges/other Restructuring charges/other is comprised of the following components: For Years Ended December 31, 2017 2016 2015 Restructuring charges (a) $ 11 $ 25 $ 14 Gains on sales of assets — (40 ) (83 ) Other — — (2 ) Restructuring charges/other $ 11 $ (15 ) $ (71 ) (a) Includes severance and benefits, accelerated depreciation, changes in estimates or other exit costs. Restructuring charges/other are recognized in Other for segment reporting purposes. Restructuring charges Beginning January 2017, we reorganized the product lines within our two reportable segments. We recognized a related $18 million of restructuring charges for severance and benefit costs in 2016 and an additional $3 million in 2017. Any further charges are not expected to be material. As of December 31, 2017, $16 million has been paid to terminated employees for severance and benefits. We announced in January 2016 our intention to phase out a manufacturing facility in Greenock, Scotland. We are moving production from this facility to more cost-effective 200-millimeter TI manufacturing facilities in Germany, Japan and Maine. Total restructuring charges, primarily severance and related benefit costs associated with the expected reduction of about 350 jobs, are estimated to be about $40 million. We recognized charges of $8 million in 2017, $7 million in 2016 and $17 million in 2015. These charges were comprised of severance and benefits costs, as well as accelerated depreciation. The remaining charges are expected to be recognized through 2019. Changes in accrued restructuring balances 2017 2016 2015 Balance, January 1 $ 40 $ 32 $ 57 Restructuring charges 11 25 14 Non-cash items (a) (1 ) (6 ) — Payments (21 ) (11 ) (39 ) Balance, December 31 $ 29 $ 40 $ 32 (a) Reflects charges for impacts of accelerated depreciation and changes in exchange rates. The restructuring accrual balances are primarily reported as a component of either Accrued expenses and other liabilities or Other long-term liabilities on our Consolidated Balance Sheets, depending on the expected timing of payment. Gains on sales of assets In 2016, we recognized a gain of $40 million on the sale of intellectual property. We recognized $83 million of gains on sales of assets in 2015. This included $48 million associated with the sale of a site in Plano, Texas, and $34 million associated with the sale of a manufacturing facility in Houston, Texas. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock compensation | 4. Stock compensation We have stock options outstanding to participants under long-term incentive plans. The option price per share may not be less than the fair market value of our common stock on the date of the grant. The options have a 10 four We also have RSUs outstanding under long-term incentive plans. Each RSU represents the right to receive one share of TI common stock on the vesting date four We have options and RSUs outstanding to non-employee directors under director compensation plans. The plans generally provide for annual grants of stock options and RSUs, a one-time grant of RSUs to each new non-employee director and the issuance of TI common stock upon the distribution of stock units credited to deferred compensation accounts established for such directors. We also have an employee stock purchase plan under which options are offered to all eligible employees in amounts based on a percentage of the employee’s compensation, subject to a cap. Under the plan, the option price per share is 85 percent Total stock compensation expense recognized is as follows: For Years Ended December 31, 2017 2016 2015 COR $ 36 $ 40 $ 47 R&D 59 60 60 SG&A 147 152 169 Acquisition charges — — 10 Total $ 242 $ 252 $ 286 These amounts include expenses related to non-qualified stock options, RSUs and stock options offered under our employee stock purchase plan and are net of estimated forfeitures. We recognize compensation expense for non-qualified stock options and RSUs on a straight-line basis over the minimum service period required for vesting of the award, adjusting for estimated forfeitures based on historical activity. Awards issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. Options issued under our employee stock purchase plan are expensed over a three-month period. Fair-value methods and assumptions We account for all awards granted under our various stock compensation plans at fair value. We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model For Years Ended December 31, 2017 2016 2015 Weighted average grant date fair value, per share $ 16.49 $ 10.03 $ 9.49 Weighted average assumptions used: Expected volatility 24 % 25 % 22 % Expected lives (in years) 7.2 7.3 7.3 Risk-free interest rates 2.36 % 1.72 % 1.64 % Expected dividend yields 2.52 % 2.87 % 2.52 % We determine expected volatility on all options granted using available implied volatility rates. We believe that market-based measures of implied volatility are currently the best available indicators of the expected volatility used in these estimates. We determine expected lives of options based on the historical option exercise experience of our optionees using a rolling 10- Risk-free interest rates are determined using the implied yield currently available for zero Expected dividend yields are based on the annualized approved quarterly dividend rate and the current market price of our common stock at the time of grant. No assumption for a future dividend rate change is included unless there is an approved plan to change the dividend in the near term. The fair value per share of RSUs is determined based on the closing price of our common stock on the date of grant. Our employee stock purchase plan is a discount-purchase plan and consequently the Black-Scholes-Merton option-pricing model is not used to determine the fair value per share of these awards. The fair value per share under this plan equals the amount of the discount. Long-term incentive and director compensation plans Stock option and RSU transactions under our long-term incentive and director compensation plans are as follows: Stock Options RSUs Weighted Average Weighted Average Exercise Price Grant Date Fair Shares per Share Shares Value per Share Outstanding grants, December 31, 2016 52,265,788 $ 41.89 12,332,379 $ 44.44 Granted 6,474,732 79.28 1,604,469 79.52 Stock options exercised/RSUs vested (13,313,019 ) 37.13 (4,419,464 ) 33.65 Forfeited and expired (672,908 ) 57.12 (291,741 ) 54.34 Outstanding grants, December 31, 2017 44,754,593 48.49 9,225,643 55.40 The weighted average grant date fair values per share of RSUs granted in 2017, 2016 and 2015 As of December 31, 2017, the number of shares remaining available for future issuance under these plans was 53,595,374. Summarized information about stock options outstanding as of December 31, 2017 Stock Options Outstanding Options Exercisable Number Weighted Average Weighted Average Number Weighted Average Exercise Price Outstanding Remaining Contractual Exercise Price Exercisable Exercise Price Range (Shares) Life (Years) per Share (Shares) per Share $ 14.47 to 20.00 1,230,810 1.1 $ 14.97 1,230,810 $ 14.97 20.01 to 30.00 2,559,613 1.9 23.86 2,559,613 23.86 30.01 to 40.00 9,441,380 4.3 33.02 9,441,380 33.02 40.01 to 50.00 7,466,229 6.1 44.10 4,403,409 44.10 50.01 to 60.00 17,689,385 7.6 53.42 4,472,432 53.61 60.01 to 70.00 — — — — — 70.01 to 80.00 6,347,174 9.1 79.19 6,470 71.03 80.01 to 97.29 20,002 9.7 88.81 — — 14.47 to 97.29 44,754,593 6.4 48.49 22,114,114 37.34 In 2017, 2016 $ million $ million $ million Summarized information as of December 31, 2017 Outstanding Stock Options (Fully Vested and Options Expected to Vest) (a) Exercisable Number of outstanding (shares) 43,804,402 22,114,114 Weighted average remaining contractual life (in years) 6.3 4.8 Weighted average exercise price per share $ 48.12 $ 37.34 Intrinsic value (millions of dollars) $ 2,467 $ 1,484 (a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $2,504 million. As of December 31, 2017 $ million $ million $ million $ million $ million $ million $ million $ million Employee stock purchase plan Options outstanding under the employee stock purchase plan as of December 31, 2017 85 percent none Employee stock purchase plan transactions are as follows: Employee Stock Purchase Plan (Shares) Exercise Price Outstanding grants, December 31, 2016 283,400 $ 62.55 Granted 984,536 55.19 Exercised (1,065,757 ) 67.62 Outstanding grants, December 31, 2017 202,179 89.74 The weighted average grant date fair values per share of options granted under the employee stock purchase plans in 2017, 2016 $ $ $ 2017 $ million, $12 million and $12 million, respectively As of December 31, 2017, the number of shares remaining available for future issuance under this plan was 35,402,636. Effect on shares outstanding and treasury shares Treasury shares were acquired in connection with the board-authorized stock repurchase program. As of December 31, 2017, $9.24 billion of stock repurchase authorizations remain, and no expiration date has been specified. Our current practice is to issue shares of common stock from treasury shares upon exercise of stock options, distribution of director deferred compensation and vesting of RSUs. The following table reflects the changes in our treasury shares: Stock Options RSUs Treasury Shares Balance, December 31, 2014 694,189,127 Repurchases 51,384,339 Shares used for: Stock options/RSUs (11,953,455 ) (3,386,415 ) Stock applied to exercises or taxes 8,562 845,164 ESPP (1,532,264 ) — Director deferred stock units — — (7,531 ) Total issued (13,477,157 ) (2,541,251 ) (16,018,408 ) Balance, December 31, 2015 729,547,527 Repurchases 35,480,036 Shares used for: Stock options/RSUs (14,516,606 ) (5,639,666 ) Stock applied to exercises or taxes — 1,336,476 ESPP (1,362,202 ) — Director deferred stock units — — (13,587 ) Total issued (15,878,808 ) (4,303,190 ) (20,181,998 ) Balance, December 31, 2016 744,831,978 Repurchases 30,570,129 Shares used for: Stock options/RSUs (13,313,019 ) (4,419,464 ) Stock applied to exercises or taxes — 1,058,100 ESPP (1,065,757 ) — Director deferred stock units — — (4,750 ) Total issued (14,378,776 ) (3,361,364 ) (17,740,140 ) Balance, December 31, 2017 757,657,217 The effects on cash flows are as follows: For Years Ended December 31, 2017 2016 2015 Proceeds from common stock transactions (a) $ 483 $ 472 $ 396 Tax benefit realized from stock compensation $ 341 $ 255 $ 171 Reduction to deferred tax asset (91 ) (105 ) (81 ) Excess tax benefit for stock compensation $ 250 $ 150 $ 90 (a) Net of taxes paid for employee shares withheld of $83 million in 2017, $70 million in 2016 and $46 million in 2015. |
Profit Sharing Plans
Profit Sharing Plans | 12 Months Ended |
Dec. 31, 2017 | |
Profit Sharing Plans [Abstract] | |
Profit sharing plans | 5. Profit sharing plans Profit sharing benefits are generally formulaic and determined by one or more subsidiary or company-wide financial metrics. We pay profit sharing benefits primarily under the company-wide TI Employee Profit Sharing Plan. This plan provides for profit sharing to be paid based solely on TI’s operating margin for the full calendar year. Under this plan, TI must achieve a minimum threshold of 10 percent 10 percent 2 percent 20 percent 35 percent We recognized $355 million $346 million $309 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 6. Income taxes Income before income taxes is comprised of the following components: For Years Ended December 31, 2017 2016 2015 U.S. $ 5,130 $ 3,953 $ 3,218 Non-U.S. 950 977 998 Total $ 6,080 $ 4,930 $ 4,216 Provision for income taxes is comprised of the following components: For Years Ended December 31, 2017 2016 2015 Current Deferred Total Current Deferred Total Current Deferred Total U.S. federal $ 2,101 $ 51 $ 2,152 $ 1,289 $ (122 ) $ 1,167 $ 1,110 $ (72 ) $ 1,038 Non-U.S. 173 61 234 238 (80 ) 158 168 14 182 U.S. state 12 — 12 10 — 10 7 3 10 Total $ 2,286 $ 112 $ 2,398 $ 1,537 $ (202 ) $ 1,335 $ 1,285 $ (55 ) $ 1,230 Principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (Provision for income taxes as a percentage of Income before income taxes) are as follows: For Years Ended December 31, 2017 2016 2015 U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % U.S. Tax Act 12.7 — — U.S. excess tax benefit for stock compensation (4.1 ) (3.0 ) — Non-U.S. effective tax rates (2.5 ) (3.7 ) (4.0 ) U.S. tax benefit for manufacturing (1.6 ) (1.5 ) (1.6 ) U.S. R&D tax credit (1.1 ) (1.2 ) (1.3 ) Impact of changes to uncertain tax positions 0.7 0.6 0.2 U.S. non-deductible expenses 0.2 0.3 0.3 Other 0.1 0.6 0.6 Effective tax rate 39.4 % 27.1 % 29.2 % The U.S. Tax Cuts and Jobs Act (the Tax Act) was enacted on December 22, 2017. The Tax Act reduces the U.S. statutory income tax rate from 35 percent to 21 percent and requires companies to pay a tax on indefinitely reinvested earnings of certain non-U.S. subsidiaries that were previously tax deferred. We have not completed our accounting for the tax effects of enactment of the Tax Act. We have made reasonable estimates of the tax on indefinitely reinvested earnings and the effects on our existing deferred tax balances. This resulted in additional tax expense in 2017 of $773 million, an increase of 12.7 percentage points to our effective tax rate. The combined effects of the tax on indefinitely reinvested earnings and the revaluation of our deferred tax balances are included as a component of income tax expense from continuing operations. Details on provisional amounts are as follows: • Indefinitely reinvested earnings – The tax on indefinitely reinvested earnings is based on our non-U.S. post-1986 earnings and profits (E&P) that we previously deferred from U.S. income taxes, and resulted in an increase in income tax expense of $714 million. We have not yet completed our calculation of the total post-1986 E&P for these non-U.S. subsidiaries. Further, the tax on indefinitely reinvested earnings is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of post-1986 non-U.S. E&P previously deferred from U.S. income taxes and finalize the amounts held in cash or other specified assets. • Deferred tax assets and liabilities – We remeasured deferred tax assets and liabilities based on the U.S. statutory income tax rate of 21 percent. However, we are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of our deferred tax balance was $59 million. The Tax Act also included the global intangible low-taxed income (GILTI) tax for years beginning in 2018. We will account for the effects of GILTI as a component of income tax expense in the future period in which the tax arises. The earnings represented by non-cash operating assets, such as fixed assets and certain inventory, will continue to be permanently reinvested outside the United States. The tax on indefinitely reinvested earnings eliminates any additional U.S. taxation of these earnings upon repatriation to the United States. Consequently, no U.S. tax provision has been made for the future remittance of these earnings. However, withholding taxes in certain non-U.S. jurisdictions will be incurred upon repatriation of available cash to the United States. A provision has been made for deferred taxes on these undistributed earnings to the extent that dividend payments from these subsidiaries are expected to result in a withholding tax liability. As of December 31, 2017, we have no basis differences that would result in material unrecognized deferred tax liabilities. Our effective tax rate is affected by U.S. tax benefits and tax rates applicable to our operations in many of the jurisdictions in which we operate, most of which were lower than the U.S. statutory income tax rate prior to enactment of the Tax Act. These non-U.S. tax rates are generally statutory in nature and without expiration. The primary components of deferred tax assets and liabilities are as follows: December 31, 2017 2016 Deferred tax assets: Deferred loss and tax credit carryforwards $ 256 $ 214 Accrued expenses 119 219 Stock compensation 107 220 Inventories and related reserves 93 145 Retirement costs for defined benefit and retiree health care 38 82 Other 9 81 Total deferred tax assets, before valuation allowance 622 961 Valuation allowance (165 ) (128 ) Total deferred tax assets, after valuation allowance 457 833 Deferred tax liabilities: Acquisition-related intangibles and fair-value adjustments (207 ) (460 ) International earnings (64 ) (32 ) Total deferred tax liabilities (271 ) (492 ) Net deferred tax asset $ 186 $ 341 The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows: December 31, 2017 2016 Deferred tax assets $ 264 $ 374 Deferred tax liabilities (78 ) (33 ) Net deferred tax asset $ 186 $ 341 We make an ongoing assessment regarding the realization of U.S. and non-U.S. deferred tax assets. This assessment is based on our evaluation of relevant criteria, including the existence of deferred tax liabilities that can be used to absorb deferred tax assets, taxable income in prior carryback years and expectations for future taxable income. Valuation allowances increased by $37 million in 2017 and decreased by $ million We have U.S. and non-U.S. tax loss carryforwards of approximately $6 million none Cash payments made for income taxes, net of refunds, were $1.80 billion $1.15 billion $1.17 billion 2017 Uncertain tax positions We operate in a number of tax jurisdictions, and our income tax returns are subject to examination by tax authorities in those jurisdictions who may challenge any item on these tax returns. Because the matters challenged by authorities are typically complex, their ultimate outcome is uncertain. Before any benefit can be recorded in our financial statements, we must determine that it is “more likely than not” that a tax position will be sustained by the appropriate tax authorities. We recognize accrued interest related to uncertain tax positions and penalties as components of OI&E. The changes in the total amounts of uncertain tax positions are as follows: 2017 2016 2015 Balance, January 1 $ 243 $ 84 $ 108 Additions based on tax positions related to the current year 17 4 11 Additions for tax positions of prior years 42 189 3 Reductions for tax positions of prior years (1 ) (2 ) (21 ) Settlements with tax authorities (1 ) (32 ) (17 ) Balance, December 31 $ 300 $ 243 $ 84 Interest income (expense) recognized in the year ended December 31 $ (19 ) $ 4 $ 8 Interest receivable (payable) as of December 31 $ (38 ) $ 13 $ 9 The liability for uncertain tax positions is a component of Other long-term liabilities on our Consolidated Balance Sheets. All of the $300 million and the $243 million liabilities for uncertain tax positions as of December 31, 2017 and 2016, respectively, are comprised of positions that, if recognized, would lower the effective tax rate. If these liabilities are ultimately realized, $13 million and $12 million of existing deferred tax assets in 2017 and 2016, respectively, would also be realized. These deferred tax assets are related to refunds from counterparty jurisdictions resulting from procedures for relief from double taxation. As of December 31, 2017 In non-U.S. jurisdictions, the years open to audit represent the years still open under the statute of limitations. With respect to major jurisdictions outside the United States, our subsidiaries are no longer subject to income tax audits for years before 2007. |
Financial Instruments and Risk
Financial Instruments and Risk Concentration | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Financial instruments and risk concentration | 7. Financial instruments and risk concentration Financial instruments We hold derivative financial instruments such as forward foreign currency exchange contracts, the fair value of which was not material as of December 31, 2017 December 31, 2017 $365 million 140 Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our deferred compensation liabilities, are carried at fair value. Our postretirement plan assets are carried at fair value or net asset value per share. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. The carrying value of our long-term debt approximates the fair value as measured using broker-dealer quotes, which are Level 2 inputs. See Note 8 for a description of fair value and the definition of Level 2 inputs. Risk concentration We are subject to counterparty risks from financial institutions, customers and issuers of debt securities. Financial instruments that could subject us to concentrations of credit risk are primarily cash deposits, cash equivalents, short-term investments and accounts receivable. To manage our credit risk exposure, we place cash investments in investment-grade debt securities and limit the amount of credit exposure to any one issuer. We also limit counterparties on cash deposits and financial derivative contracts to financial institutions with investment-grade ratings. Concentrations of credit risk with respect to accounts receivable are limited due to our large number of customers and their dispersion across different industries and geographic areas. We maintain allowances for expected returns, disputes, adjustments, incentives and collectability. These allowances are deducted from accounts receivable on our Consolidated Balance Sheets. Details of these accounts receivable allowances are as follows: 2017 2016 2015 Balance, January 1 $ 17 $ 7 $ 12 Amounts charged (credited) to operating results (9 ) 10 (5 ) Recoveries and write-offs, net — — — Balance, December 31 $ 8 $ 17 $ 7 Major customer No end customer accounted for 10 percent or more of revenue in 2017 or 2016. In 2015, Apple Inc. accounted for approximately 11 percent of revenue, recognized primarily in our Analog segment. |
Valuation of Debt and Equity In
Valuation of Debt and Equity Investments and Certain Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Valuation of debt and equity investments and certain liabilities | 8. Valuation of debt and equity investments and certain liabilities Debt and equity investments We classify our investments as available for sale, trading, equity method or cost method. Most of our investments are classified as available for sale. Available-for-sale and trading securities are stated at fair value, which is generally based on market prices or broker quotes. See Fair-value considerations We classify certain mutual funds as trading securities. These mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. Our other investments are not measured at fair value but are accounted for using either the equity method or cost method. These investments consist of interests in venture capital funds and other non-marketable equity securities. Gains and losses from equity-method investments are reflected in OI&E based on our ownership share of the investee’s financial results. Gains and losses on cost-method investments are recorded in OI&E when realized or when an impairment of the investment’s value is warranted based on our assessment of the recoverability of each investment. Details of our investments are as follows: December 31, 2017 December 31, 2016 Cash and Cash Short-Term Long-Term Cash and Cash Short-Term Long-Term Equivalents Investments Investments Equivalents Investments Investments Measured at fair value: Available-for-sale securities: Money market funds $ 525 $ — $ — $ 346 $ — $ — Corporate obligations 172 698 — 107 544 — U.S. government agency and Treasury securities 700 2,115 — 490 1,792 — Trading securities: Mutual funds — — 236 — — 201 Total 1,397 2,813 236 943 2,336 201 Other measurement basis: Equity-method investments — — 26 — — 25 Cost-method investments — — 6 — — 9 Cash on hand 259 — — 211 — — Total $ 1,656 $ 2,813 $ 268 $ 1,154 $ 2,336 $ 235 As of December 31, 2017 2017 In 2017 $4.10 billion $3.39 billion $2.89 billion Other-than-temporary declines and impairments in the values of our debt and equity investments, which were recognized in OI&E, were not material in 2015 Fair-value considerations We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy discussed below indicates the extent and level of judgment used to estimate fair-value measurements. • Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. • Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. • Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of December 31, 2017 and 2016, we had no Level 3 assets or liabilities, other than certain assets held by our postretirement plans. The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value. December 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Money market funds $ 525 $ — $ 525 $ 346 $ — $ 346 Corporate obligations — 870 870 — 651 651 U.S. government agency and Treasury securities 2,765 50 2,815 2,042 240 2,282 Mutual funds 236 — 236 201 — 201 Total assets $ 3,526 $ 920 $ 4,446 $ 2,589 $ 891 $ 3,480 Liabilities: Deferred compensation $ 255 $ — $ 255 $ 218 $ — $ 218 Total liabilities $ 255 $ — $ 255 $ 218 $ — $ 218 |
Goodwill and Acquisition-Relate
Goodwill and Acquisition-Related Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and acquisition-related intangibles | 9. Goodwill and acquisition-related intangibles Goodwill by segment as of December 31, 2017 Goodwill Analog $ 4,158 Embedded Processing 172 Other 32 Total $ 4,362 We perform our annual goodwill impairment test as of October 1 and determine whether the fair value of each of our reporting units is in excess of its carrying value. Determination of fair value is based upon management estimates and judgment, using unobservable inputs in discounted cash flow models to calculate the fair value of each reporting unit. These unobservable inputs are considered Level 3 measurements, as described in Note 8. In The components of Acquisition-related intangibles are as follows: Amortization December 31, 2017 December 31, 2016 Period Gross Carrying Accumulated Gross Carrying Accumulated (Years) Amount Amortization Net Amount Amortization Net Developed technology 7 - 10 $ 2,130 $ 1,361 $ 769 $ 2,130 $ 1,144 $ 986 Customer relationships 8 810 633 177 810 532 278 Total $ 2,940 $ 1,994 $ 946 $ 2,940 $ 1,676 $ 1,264 Amortization of acquisition-related intangibles was $318 million $319 million $319 million Amortization of Acquisition-Related Intangibles 2018 $ 318 2019 288 2020 198 2021 142 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement benefit plans | 10. Postretirement benefit plans Plan descriptions We have various employee retirement plans, including defined contribution, defined benefit and retiree health care benefit plans. For qualifying employees, we offer deferred compensation arrangements. U.S. retirement plans Our principal retirement plans in the United States are a defined contribution plan; an enhanced defined contribution plan; and qualified and non-qualified defined benefit pension plans. The defined benefit plans were closed to new participants in 1997, and then current participants were allowed to make a one-time election to continue accruing a benefit in the plans, or to cease accruing a benefit and instead to participate in the enhanced defined contribution plan described below. Both defined contribution plans offer an employer-matching savings option that allows employees to make pre-tax contributions to various investment choices. Employees who elected to continue accruing a benefit in the qualified defined benefit pension plans may also participate in the defined contribution plan, where employer-matching contributions are provided for up to 2 percent of the employee’s annual eligible earnings. Employees who elected not to continue accruing a benefit in the defined benefit pension plans, and employees hired after November 1997 and through December 31, 2003, may participate in the enhanced defined contribution plan. This plan provides for a fixed employer contribution of 2 percent of the employee’s annual eligible earnings, plus an employer-matching contribution of up to 4 percent of the employee’s annual eligible earnings. Employees hired after December 31, 2003, do not receive the fixed employer contribution of 2 percent of the employee’s annual eligible earnings. As of December 31, 2017 10 million 11 million $1.00 billion $796 million $ million, respectively Our aggregate expense for the U.S. defined contribution plans was $61 million in 2017 and $ 60 million The defined benefit pension plans include employees still accruing benefits, as well as employees and participants who no longer accrue service-related benefits, but instead, may participate in the enhanced defined contribution plan. Benefits under the qualified defined benefit pension plan are determined using a formula based upon years of service and the highest five U.S. retiree health care benefit plan U.S. employees who meet eligibility requirements are offered medical coverage during retirement. We make a contribution toward the cost of those retiree medical benefits for certain retirees and their dependents. The contribution rates are based upon various factors, the most important of which are an employee’s date of hire, date of retirement, years of service and eligibility for Medicare benefits. The balance of the cost is borne by the plan’s participants. Employees hired after January 1, 2001, are responsible for the full cost of their medical benefits during retirement. Non-U.S. retirement plans We provide retirement coverage for non-U.S. employees, as required by local laws or to the extent we deem appropriate, through a number of defined benefit and defined contribution plans. Retirement benefits are generally based on an employee’s years of service and compensation. Funding requirements are determined on an individual country and plan basis and are subject to local country practices and market circumstances. As of December 31, 2017 $ million, respectively Effects on our Consolidated Statements of Income and Balance Sheets Expense related to defined benefit and retiree health care benefit plans is as follows: U.S. Defined Benefit U.S. Retiree Health Care Non-U.S. Defined Benefit 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 22 $ 22 $ 22 $ 5 $ 5 $ 5 $ 37 $ 34 $ 35 Interest cost 42 42 43 17 20 20 44 52 53 Expected return on plan assets (41 ) (41 ) (48 ) (17 ) (20 ) (22 ) (62 ) (68 ) (76 ) Amortization of prior service cost (credit) — — — (4 ) (3 ) 2 (2 ) (2 ) (2 ) Recognized net actuarial loss 14 21 19 3 7 8 28 25 24 Net periodic benefit costs 37 44 36 4 9 13 45 41 34 Settlement losses 36 21 25 — — — 2 2 2 Total, including other postretirement losses $ 73 $ 65 $ 61 $ 4 $ 9 $ 13 $ 47 $ 43 $ 36 With our early adoption of ASU 2017-07, all defined benefit and retiree health care benefit plan expense components other than service cost are recognized in OI&E in our Consolidated Statements of Income. Service cost is recognized within Operating profit. See Note 2 for additional information. For the U.S. qualified pension and retiree health care plans, the expected return on plan assets component of net periodic benefit cost is based upon a market-related value of assets. In accordance with U.S. GAAP, the market-related value of assets is the fair value adjusted by a smoothing technique whereby certain gains and losses are phased in over a period of three Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows: U.S. U.S. Non-U.S. Defined Benefit Retiree Health Care Defined Benefit 2017 2016 2017 2016 2017 2016 Change in plan benefit obligation Benefit obligation at beginning of year: $ 1,030 $ 1,033 $ 434 $ 463 $ 2,361 $ 2,231 Service cost 22 22 5 5 37 34 Interest cost 42 42 17 20 44 52 Participant contributions — — 9 10 6 6 Benefits paid (9 ) (9 ) (39 ) (38 ) (90 ) (77 ) Medicare subsidy — — — 1 — — Actuarial loss (gain) 109 27 (15 ) (27 ) (52 ) 259 Settlements (196 ) (85 ) — — (13 ) (8 ) Plan amendments — — 3 — — — Effects of exchange rate changes — — — — 176 (136 ) Benefit obligation at end of year (BO) $ 998 $ 1,030 $ 414 $ 434 $ 2,469 $ 2,361 Change in plan assets Fair value of plan assets at beginning of year: $ 1,034 $ 1,019 $ 434 $ 441 $ 2,309 $ 2,134 Actual return on plan assets 123 79 44 20 148 227 Employer contributions (qualified plans) 25 15 1 1 56 160 Employer contributions (non-qualified plans) 18 15 — — — — Participant contributions — — 9 10 6 6 Benefits paid (9 ) (9 ) (39 ) (38 ) (90 ) (77 ) Settlements (196 ) (85 ) — — (13 ) (8 ) Effects of exchange rate changes — — — — 177 (133 ) Other — — (55 ) — — — Fair value of plan assets at end of year (FVPA) $ 995 $ 1,034 $ 394 $ 434 $ 2,593 $ 2,309 Funded status (FVPA – BO) at end of year $ (3 ) $ 4 $ (20 ) $ — $ 124 $ (52 ) Amounts recognized on our Consolidated Balance Sheets as of December 31, a U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit Total 2017 Overfunded retirement plans $ 58 $ — $ 150 $ 208 Accrued expenses and other liabilities & Other long-term liabilities (13 ) — (5 ) (18 ) Underfunded retirement plans (48 ) (20 ) (21 ) (89 ) Funded status (FVPA – BO) at end of 2017 $ (3 ) $ (20 ) $ 124 $ 101 2016 Overfunded retirement plans $ 66 $ 3 $ 27 $ 96 Accrued expenses and other liabilities & Other long-term liabilities (9 ) — (6 ) (15 ) Underfunded retirement plans (53 ) (3 ) (73 ) (129 ) Funded status (FVPA – BO) at end of 2016 $ 4 $ — $ (52 ) $ (48 ) Contributions to the plans meet or exceed all minimum funding requirements. We expect to contribute about $50 million Accumulated benefit obligations, which are generally less than the projected benefit obligations as they exclude the impact of future salary increases, were $899 million $926 million $2.33 billion $2.22 billion The change in AOCI is as follows: U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit Total Net Actuarial Loss Net Actuarial Loss Prior Service Credit Net Actuarial Loss Prior Service Credit Net Actuarial Loss Prior Service Credit AOCI balance, net of taxes, December 31, 2016 $ 133 $ 58 $ (11 ) $ 351 $ (6 ) $ 542 $ (17 ) Changes in AOCI by category: Adjustments 28 (41 ) 3 (105 ) — (118 ) 3 Recognized within Net income (51 ) (3 ) 4 (29 ) 2 (83 ) 6 Tax effect 8 15 (2 ) 30 — 53 (2 ) Total change to AOCI (15 ) (29 ) 5 (104 ) 2 (148 ) 7 AOCI balance, net of taxes, December 31, 2017 $ 118 $ 29 $ (6 ) $ 247 $ (4 ) $ 394 $ (10 ) The estimated amounts of net actuarial loss and unrecognized prior service credit included in AOCI as of December 31, 2017 $17 million none $2 million $3) million $20 million ($2) million Information on plan assets We report and measure the plan assets of our defined benefit pension and other postretirement plans at fair value. The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 8. With the adoption of ASU 2015-07, certain assets are no longer subject to disclosure by level of fair value but have been included in the tables below to permit reconciliation to the total plan assets. December 31, 2017 Level 1 Level 2 Level 3 Other (a) Total Assets of U.S. defined benefit plan: Fixed income securities and cash equivalents $ — $ — $ — $ 654 $ 654 Equity securities — — — 341 341 Total $ — $ — $ — $ 995 $ 995 Assets of U.S. retiree health care plan: Fixed income securities and cash equivalents $ 132 $ 2 $ — $ 111 $ 245 Equity securities — — — 149 149 Total $ 132 $ 2 $ — $ 260 $ 394 Assets of non-U.S. defined benefit plans: Fixed income securities and cash equivalents $ 16 $ 183 $ — $ 1,646 $ 1,845 Equity securities 7 23 — 717 747 Other — — 1 — 1 Total $ 23 $ 206 $ 1 $ 2,363 $ 2,593 (a) December 31, 2016 Level 1 Level 2 Level 3 Other (a) Total Assets of U.S. defined benefit plan: Fixed income securities and cash equivalents $ — $ — $ — $ 685 $ 685 Equity securities — — — 349 349 Total $ — $ — $ — $ 1,034 $ 1,034 Assets of U.S. retiree health care plan: Fixed income securities and cash equivalents $ 180 $ 3 $ — $ 44 $ 227 Equity securities — — — 207 207 Total $ 180 $ 3 $ — $ 251 $ 434 Assets of non-U.S. defined benefit plans: Fixed income securities and cash equivalents $ 19 $ 127 $ — $ 1,508 $ 1,654 Equity securities 5 18 — 629 652 Other — — 3 — 3 Total $ 24 $ 145 $ 3 $ 2,137 $ 2,309 (a) Consists of bond index and equity index funds, measured at net asset value per share. The investments in our major benefit plans largely consist of low-cost, broad-market index funds to mitigate risks of concentration within market sectors. Our investment policy is designed to better match the interest rate sensitivity of the plan assets and liabilities. The appropriate mix of equity and bond investments is determined primarily through the use of detailed asset-liability modeling studies that look to balance the impact of changes in the discount rate against the need to provide asset growth to cover future service cost. Most of our plans around the world have a greater proportion of fixed income securities with return characteristics that are more closely aligned with changes in the liabilities caused by discount rate volatility. For the U.S. plans, we utilize an option collar strategy to reduce the volatility of returns on investments in U.S. equity funds. The only Level 3 asset in our worldwide benefit plans for the periods presented is a diversified property fund in a non-U.S. pension plan. These investments are valued using inputs from the fund managers and internal models. Changes to the fair value of this fund since December 31, 2015, have not been material, and are due to redemptions. Assumptions and investment policies U.S. U.S. Retiree Non-U.S. Defined Benefit Health Care Defined Benefit 2017 2016 2017 2016 2017 2016 Weighted average assumptions used to determine benefit obligations: Discount rate 3.75% 4.29% 3.63% 4.08% 1.84% 1.76% Long-term pay progression 3.30% 3.30% n/a n/a 2.96% 3.11% Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.21% 4.40% 4.08% 4.40% 1.76% 2.41% Long-term rate of return on plan assets 4.30% 4.60% 4.10% 4.40% 2.60% 3.18% Long-term pay progression 3.30% 3.30% n/a n/a 3.11% 3.21% We utilize a variety of methods to select an appropriate discount rate depending on the depth of the corporate bond market in the country in which the benefit plan operates. In the United States, we use a settlement approach whereby a portfolio of bonds is selected from the universe of actively traded high-quality U.S. corporate bonds. The selected portfolio is designed to provide cash flows sufficient to pay the plan’s expected benefit payments when due. The resulting discount rate reflects the rate of return of the selected portfolio of bonds. For our non-U.S. locations with a sufficient number of actively traded high-quality bonds, an analysis is performed in which the projected cash flows from the defined benefit plans are discounted against a yield curve constructed with an appropriate universe of high-quality corporate bonds available in each country. In this manner, a present value is developed. The discount rate selected is the single equivalent rate that produces the same present value. For countries that lack a sufficient corporate bond market, a government bond index adjusted for an appropriate risk premium is used to establish the discount rate. Assumptions for the expected long-term rate of return on plan assets are based on future expectations for returns for each asset class and the effect of periodic target asset allocation rebalancing. We adjust the results for the payment of reasonable expenses of the plan from plan assets. We believe our assumptions are appropriate based on the investment mix and long-term nature of the plans’ investments. Assumptions used for the non-U.S. defined benefit plans reflect the different economic environments within the various countries. The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows: U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit Fixed income securities and cash equivalents 65% 55% - 65% 60% - 100% Equity securities 35% 35% - 45% 0% - 40% We rebalance the plans’ investments when they are not within the target allocation ranges. Weighted average asset allocations as of December 31 are as follows: U.S. Defined U.S. Retiree Non-U.S. Defined Benefit Health Care Benefit 2017 2016 2017 2016 2017 2016 Fixed income securities and cash equivalents 66% 66% 62% 52% 71% 72% Equity securities 34% 34% 38% 48% 29% 28% None of the plan assets related to the defined benefit pension plans and retiree health care benefit plan are directly invested in TI common stock. As of December 31, 2017 The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets. U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit 2018 $ 140 $ 30 $ 86 2019 111 31 87 2020 83 31 89 2021 90 30 90 2022 87 30 94 2023 – 2027 410 139 495 Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows: 2017 2016 Assumed health care cost trend rate for next year 7.50 % 6.75 % Ultimate trend rate 5.00 % 5.00 % Year in which ultimate trend rate is reached 2028 2024 A one December 31, 2017 $1 million or by $1 million Deferred compensation arrangements We have a deferred compensation plan that allows U.S. employees whose base salary and management responsibility exceed a certain level to defer receipt of a portion of their cash compensation. Payments under this plan are made based on the participant’s distribution election and plan balance. Participants can earn a return on their deferred compensation based on notional investments in the same investment funds that are offered in our defined contribution plans. As of December 31, 2017 $255 million |
Debt and Lines of Credit
Debt and Lines of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and lines of credit | 11. Debt and lines of credit Short-term borrowings We maintain a line of credit to support commercial paper borrowings, if any, and to provide additional liquidity through bank loans. As of December 31, 2017 $2 billion December 31, 2017 no Long-term debt We retired $250 million of maturing debt in March 2017 and another $375 million in June 2017. In May 2017, we issued an aggregate principal amount of $600 million of fixed-rate, long-term debt. The offering consisted of the reissuance of $300 million of 2.75% notes due in 2021 at a premium and the issuance of $300 million of 2.625% notes due in 2024 at a discount. We incurred $3 million of issuance and other related costs. The proceeds of the offerings were $605 million, net of the original issuance discount and premium, and were used for the repayment of maturing debt and general corporate purposes. In November 2017, we issued a principal amount of $500 million of fixed-rate, long-term debt due in 2027. We incurred $3 million of issuance and other related costs. The proceeds of the offering were $494 million, net of the original issuance discount, and were used for general corporate purposes. In May 2016, we issued a principal amount of $500 million of fixed-rate, long-term debt due in 2022. We incurred $3 million of issuance and other related costs. The proceeds of the offering were $499 million, net of the original issuance discount, and were used toward the repayment of a portion of $1.0 billion of maturing debt retired in May 2016. In May 2015, we issued a principal amount of $500 million of fixed-rate, long-term debt due in 2020. We incurred $3 million of issuance and other related costs. The proceeds of the offering were $498 million, net of the original issuance discount, and were used toward the repayment of a portion of the debt that matured in August 2015. We retired $250 million of maturing debt in April 2015 and another $750 million in August 2015. Long-term debt outstanding is as follows: December 31, 2017 2016 Notes due 2017 at 0.875% $ — $ 250 Notes due 2017 at 6.60% (assumed with National acquisition) — 375 Notes due 2018 at 1.00% 500 500 Notes due 2019 at 1.65% 750 750 Notes due 2020 at 1.75% 500 500 Notes due 2021 at 2.75% 550 250 Notes due 2022 at 1.85% 500 500 Notes due 2023 at 2.25% 500 500 Notes due 2024 at 2.625% 300 — Notes due 2027 at 2.90% 500 — Total debt 4,100 3,625 Net unamortized discounts, premiums and debt issuance costs (23 ) (16 ) Total debt, including net unamortized discounts, premiums and debt issuance costs 4,077 3,609 Current portion of long-term debt (500 ) (631 ) Long-term debt $ 3,577 $ 2,978 Interest and debt expense was $78 million $80 million 90 $88 million 2016 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 12. Commitments and contingencies Purchase commitments Some of our purchase commitments include payments for software licenses and contractual agreements with suppliers where there is a fixed, non-cancellable payment schedule or minimum payments due with a reduced delivery schedule. Operating leases We conduct certain operations in leased facilities and also lease a portion of our data processing and other equipment. In addition, certain long-term supply agreements to purchase industrial gases are accounted for as operating leases. Lease agreements frequently include purchase and renewal provisions and require us to pay taxes, insurance and maintenance costs. Rental and lease expense incurred was $ million $ million $ million As of December 31, 2017 Purchase Operating Commitments Leases 2018 $ 391 $ 68 2019 367 45 2020 234 49 2021 37 29 2022 30 24 Thereafter 35 56 Indemnification guarantees We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. Warranty costs/product liabilities We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our financial condition, results of operations or liquidity. Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. General We are subject to various legal and administrative proceedings. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental financial information | 13. Supplemental financial information Acquisition charges Acquisition charges represent the ongoing amortization of intangible assets resulting from the acquisition of National Semiconductor Corporation. These amounts are included in Other for segment reporting purposes, consistent with how management measures the performance of its segments. See Note 9 for additional information. Other income (expense), net (OI&E) For Years Ended December 31, 2017 2016 2015 Royalty income (a) $ 119 $ — $ — Income from settlements related to intellectual property infringement — 188 — Pension and other retiree benefit costs (b) (61 ) (56 ) (48 ) Other (c) 17 23 32 Total $ 75 $ 155 $ (16 ) (a) As of January 1, 2017, royalties are recorded in OI&E. See Note 1 for additional information. (b) Reflects the adoption of ASU 2017-07. See Note 2 for additional information. (c) Other includes interest and lease income, investment and currency gains and losses, and tax interest income and expense. Prepaid expenses and other current assets December 31, 2017 2016 Prepaid taxes on intercompany inventory profits, net $ 768 $ 566 Other 262 344 Total $ 1,030 $ 910 Property, plant and equipment at cost Depreciable December 31, Lives (Years) 2017 2016 Land n/a $ 127 $ 127 Buildings and improvements 5 - 40 2,467 2,753 Machinery and equipment 2 - 10 2,195 2,043 Total $ 4,789 $ 4,923 Other long-term liabilities December 31, 2017 2016 Long-term portion of tax on indefinitely reinvested earnings $ 635 $ — Other 668 554 Total $ 1,303 $ 554 Accumulated other comprehensive income (loss), net of taxes (AOCI) December 31, 2017 2016 Postretirement benefit plans: Net actuarial loss $ (394 ) $ (542 ) Prior service credit 10 17 Cash flow hedge derivative instruments — (1 ) Total $ (384 ) $ (526 ) Details on amounts reclassified out of Accumulated other comprehensive income (loss), net of taxes, to Net income Our Consolidated Statements of Comprehensive Income include items that have been recognized within Net income in 2017 For Years Ended Impact to December 31, Related Statement 2017 2016 2015 of Income Line Net actuarial losses of defined benefit plans: Recognized net actuarial loss and Settlement losses (a) $ 83 $ 76 $ 78 Decrease to OI&E Tax effect (27 ) (25 ) (25 ) Decrease to Provision for income taxes Recognized within Net income, net of taxes $ 56 $ 51 $ 53 Decrease to Net income Prior service credit of defined benefit plans: Amortization of prior service cost (credit) (a) $ (6 ) $ (5 ) $ — Increase to OI&E Tax effect 1 2 — Increase to Provision for income taxes Recognized within Net income, net of taxes $ (5 ) $ (3 ) $ — Increase to Net income Derivative instruments: Amortization of treasury-rate locks $ 1 $ 1 $ 2 Increase to Interest and debt expense Tax effect — — (1 ) Decrease to Provision for income taxes Recognized within Net income, net of taxes $ 1 $ 1 $ 1 Decrease to Net income (a) Detailed in Note 10. |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | 14. Quarterly financial data (unaudited) As a result of our early adoption of ASU 2017-07, we have recast Gross profit and Operating profit for 2016 to conform to the new presentation. See Note 2 for additional information. 2017 Quarters 2016 Quarters 4th 3rd 2nd 1st 4th 3rd 2nd 1st Revenue $ 3,750 $ 4,116 $ 3,693 $ 3,402 $ 3,414 $ 3,675 $ 3,273 $ 3,008 Gross profit 2,440 2,656 2,374 2,144 2,137 2,284 2,007 1,829 Included in Operating profit: Acquisition charges 79 80 79 80 80 80 79 80 Restructuring charges/other 3 1 3 4 (20 ) 1 2 2 Operating profit 1,563 1,788 1,480 1,252 1,332 1,408 1,131 984 Net income 344 1,285 1,056 997 1,047 1,018 819 711 Basic EPS $ 0.35 $ 1.29 $ 1.05 $ 0.99 $ 1.04 $ 1.00 $ 0.81 $ 0.70 Diluted EPS $ 0.34 $ 1.26 $ 1.03 $ 0.97 $ 1.02 $ 0.98 $ 0.79 $ 0.69 |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The basis of these financial statements is comparable for all periods presented herein, except for the adoption of a new accounting standard in 2016 related to stock compensation, which included certain provisions applied prospectively. The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All dollar amounts in the financial statements and tables in these notes, except per-share amounts, are stated in millions of U.S. dollars unless otherwise indicated. We have reclassified certain amounts in the prior periods’ financial statements to conform to the 2017 presentation, retrospectively applying the new accounting standard related to pension and other retiree benefit costs. See Changes in accounting standards – adopted standards for current period The preparation of financial statements requires the use of estimates from which final results may vary. |
Revenue recognition | Revenue recognition We recognize revenue from sales of our products, including sales to our distributors, when title and risk of loss pass, which usually occurs upon shipment or delivery to the customer or distributor, depending upon the terms of the sales order; when persuasive evidence of an arrangement exists; when sales amounts are fixed or determinable; and when collectability is reasonably assured. For sales to distributors, payment is due on our standard commercial terms and is not contingent upon resale of the products. Revenue from sales of our products that are subject to inventory consignment agreements, including consignment arrangements with distributors, is recognized in accordance with the principles discussed above. Delivery occurs when the customer or distributor pulls product from consignment inventory that we store at designated locations. We recognize revenue net of allowances, which are management’s estimates of future credits to be granted to customers or distributors under programs common in the semiconductor industry. These allowances, which are not material, generally include special pricing arrangements, product returns due to quality issues and incentives designed to maximize growth opportunities. Allowances are based on analysis of historical data and contractual terms and are recorded when revenue is recognized. We believe we can reasonably and reliably estimate allowances for credits to distributors in a timely manner. In addition, we record allowances for accounts receivable that we estimate may not be collected. We monitor collectability of accounts receivable primarily through review of the accounts receivable aging. When collection is at risk, we assess the impact on amounts recorded for bad debts and, if necessary, will record a charge in the period such determination is made. We recognize in revenue shipping fees, if any, received from customers. We include shipping and handling costs in COR. The majority of our customers pay these fees directly to third parties. |
Advertising costs | Advertising costs We expense advertising and other promotional costs as incurred. This expense was $39 million in 2017, $44 million $46 million |
Income taxes | Income taxes We account for income taxes using an asset and liability approach. We record the amount of taxes payable or refundable for the current year and the deferred tax assets and liabilities for future tax consequences of events that have been recognized in the financial statements or tax returns. We record a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. |
Other assessed taxes | Other assessed taxes Some transactions require us to collect taxes such as sales, value-added and excise taxes from our customers. These transactions are presented in our Consolidated Statements of Income on a net (excluded from revenue) basis. |
Earnings per share (EPS) | Earnings per share (EPS) Unvested share-based payment awards that contain non-forfeitable rights to receive dividends or dividend equivalents, such as our restricted stock units (RSUs), are considered to be participating securities and the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of Net income is allocated to these participating securities and, therefore, is excluded from the calculation of EPS allocated to common stock, as shown in the table below. |
Investments | Investments We present investments on our Consolidated Balance Sheets as cash equivalents, short-term investments or long-term investments, which are detailed as follows: • Cash equivalents and short-term investments – We consider investments in debt securities with maturities of 90 days or less from the date of our investment to be cash equivalents. We consider investments in debt securities with maturities beyond 90 days from the date of our investment as being available for use in current operations and include them in short-term investments. The primary objectives of our cash equivalent and short-term investment activities are to preserve capital and maintain liquidity while generating appropriate returns. • Long-term investments – Long-term investments consist of mutual funds, venture capital funds and non-marketable equity securities. • Classification of investments – Depending on our reasons for holding the investment and our ownership percentage, we classify our investments as either available for sale, trading, equity method or cost method, which are more fully described in Note 8. We determine cost or amortized cost, as appropriate, on a specific identification basis. Debt and equity investments We classify our investments as available for sale, trading, equity method or cost method. Most of our investments are classified as available for sale. Available-for-sale and trading securities are stated at fair value, which is generally based on market prices or broker quotes. See Fair-value considerations We classify certain mutual funds as trading securities. These mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. Our other investments are not measured at fair value but are accounted for using either the equity method or cost method. These investments consist of interests in venture capital funds and other non-marketable equity securities. Gains and losses from equity-method investments are reflected in OI&E based on our ownership share of the investee’s financial results. Gains and losses on cost-method investments are recorded in OI&E when realized or when an impairment of the investment’s value is warranted based on our assessment of the recoverability of each investment. |
Inventories | Inventories Inventories are stated at the lower of cost or estimated net realizable value. Cost is generally computed on a currently adjusted standard cost basis, which approximates cost on a first-in first-out basis. Standard cost is based on the normal utilization of installed factory capacity. Cost associated with underutilization of capacity is expensed as incurred. Inventory held at consignment locations is included in our finished goods inventory. Consigned inventory was $303 million and $334 million December 31, 2017 We review inventory quarterly for salability and obsolescence. A statistical allowance is provided for inventory considered unlikely to be sold. The statistical allowance is based on an analysis of historical disposal activity, historical customer shipments, as well as estimated future sales. A specific allowance for each material type will be carried if there is a significant event not captured by the statistical allowance. We write off inventory in the period in which disposal occurs. |
Property, plant and equipment; acquisition-related intangibles and other capitalized costs | Property, plant and equipment; acquisition-related intangibles; and other capitalized costs Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Our cost basis includes certain assets acquired in business combinations that were initially recorded at fair value as of the date of acquisition. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. We amortize acquisition-related intangibles on a straight-line basis over the estimated economic life of the assets. Capitalized software licenses generally are amortized on a straight-line basis over the term of the license. Fully depreciated or amortized assets are written off against accumulated depreciation or amortization. |
Impairments of long-lived assets | Impairments of long-lived assets We regularly review whether facts or circumstances exist that indicate the carrying values of property, plant and equipment or other long-lived assets, including intangible assets, are impaired. We assess the recoverability of assets by comparing the projected undiscounted net cash flows associated with those assets to their respective carrying amounts. Any impairment charge is based on the excess of the carrying amount over the fair value of those assets. Fair value is determined by available market valuations, if applicable, or by discounted cash flows. |
Goodwill and indefinite-lived intangibles | Goodwill and indefinite-lived intangibles Goodwill is not amortized but is reviewed for impairment annually or more frequently if certain impairment indicators arise. We perform our annual goodwill impairment test as of October 1 for our reporting units, which compares the fair value for each reporting unit to its associated carrying value, including goodwill. See Note 9 for additional information. |
Foreign currency | Foreign currency The functional currency for our non-U.S. subsidiaries is the U.S. dollar. Accounts recorded in currencies other than the U.S. dollar are remeasured into the functional currency. Current assets (except inventories), deferred taxes, other assets, current liabilities and long-term liabilities are remeasured at exchange rates in effect at the end of each reporting period. Property, plant and equipment with associated depreciation and inventories are valued at historical exchange rates. Revenue and expense accounts other than depreciation for each month are remeasured at the appropriate daily rate of exchange. Currency exchange gains and losses from remeasurement are credited or charged to OI&E. |
Derivatives and hedging | Derivatives and hedging We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments. In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt. The results of these derivative transactions have not been material. We do not use derivatives for speculative or trading purposes. |
Stock compensation | We recognize compensation expense for non-qualified stock options and RSUs on a straight-line basis over the minimum service period required for vesting of the award, adjusting for estimated forfeitures based on historical activity. Awards issued to employees who are retirement eligible or nearing retirement eligibility are expensed on an accelerated basis. Options issued under our employee stock purchase plan are expensed over a three-month period We determine expected volatility on all options granted using available implied volatility rates. We believe that market-based measures of implied volatility are currently the best available indicators of the expected volatility used in these estimates. We determine expected lives of options based on the historical option exercise experience of our optionees using a rolling 10- Risk-free interest rates are determined using the implied yield currently available for zero Expected dividend yields are based on the annualized approved quarterly dividend rate and the current market price of our common stock at the time of grant. No assumption for a future dividend rate change is included unless there is an approved plan to change the dividend in the near term. The fair value per share of RSUs is determined based on the closing price of our common stock on the date of grant. Our employee stock purchase plan is a discount-purchase plan and consequently the Black-Scholes-Merton option-pricing model is not used to determine the fair value per share of these awards. The fair value per share under this plan equals the amount of the discount. |
Fair value | Fair-value considerations We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy discussed below indicates the extent and level of judgment used to estimate fair-value measurements. • Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. • Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. • Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of December 31, 2017 and 2016, we had no Level 3 assets or liabilities, other than certain assets held by our postretirement plans. |
Indemnification guarantees and warranty costs/product liabilities | Indemnification guarantees We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result. Warranty costs/product liabilities We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our financial condition, results of operations or liquidity. Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. |
Changes in accounting standards | Changes in accounting standards – adopted standards for current period Accounting Standards Update (ASU) No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory This standard requires current and deferred taxes resulting from the intra-entity transfer of any assets other than inventory to be recognized for financial reporting purposes when the transfer occurs rather than postpone recognition until the asset has been sold to an outside party, as currently allowed. This standard is required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings and is effective for interim and annual periods beginning January 1, 2018. We elected to adopt this standard in the first quarter of 2017. The effect on our financial position and results of operations was not material. ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard amends the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement plans. This standard requires us to: (1) disaggregate the current service cost component from the other components of net periodic benefit cost (the “other components”) and present it in the same line items on the statement of income as other current compensation costs for related employees and (2) present the other components outside of operating profit (i.e., in OI&E). This standard is required to be applied retrospectively and is effective for interim and annual periods beginning January 1, 2018. We elected to adopt this standard as of January 1, 2017. Adoption of this standard did not impact Revenue, Net income, Earnings per common share or Cash flows from operating activities. The following components on the Consolidated Statements of Income were affected: For The Years Ended December 31, 2016 2015 Reported Recast Reported Recast COR $ 5,130 $ 5,113 $ 5,440 $ 5,425 Gross profit 8,240 8,257 7,560 7,575 R&D 1,370 1,356 1,280 1,267 SG&A 1,767 1,742 1,748 1,728 Operating profit: Analog 3,380 3,416 3,048 3,077 Embedded Processing 801 817 596 611 Other 618 622 630 634 Total operating profit 4,799 4,855 4,274 4,322 OI&E 211 155 32 (16 ) Changes in accounting standards – standards not yet adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures, which we are currently evaluating. It is effective for interim and annual reporting periods beginning January 1, 2018. This standard permits early adoption and the use of either the retrospective or cumulative-effect transition method. We plan on adopting this standard using the cumulative-effect (i.e., modified retrospective) transition method, which will result in an adjustment to retained earnings for the cumulative effect of applying this guidance to contracts in process as of January 1, 2018. Under this approach, we will not restate the prior financial statements presented. Based on our current assessment, we do not expect the new standard to have a material impact on our financial position and results of operations, as it is not expected to materially change the manner or timing in which we recognize revenue. We recognize revenue on sales to customers and distributors upon satisfaction of our performance obligations when the goods are shipped. For consignment sales, we recognize revenue when the goods are pulled from consignment inventory. Beginning January 1, 2017, we no longer recognize in revenue royalty income from licensing our patent portfolios; however, we are still required to apply the recognition, measurement and disclosure provisions of this new standard to our royalty income. We believe the most significant impact of the new standard will be to accelerate the timing of recognizing royalty income in OI&E, although the effect of such change on the results of operations and financial position recognized in any individual reporting period is not expected to be material. This change will have no effect on the recognition and timing of cash flows over any affected periods. ASU No. 2016-02, Leases (Topic 842) This standard requires all leases that have a term of over 12 months to be recognized on the balance sheet with the liability for lease payments and the corresponding right-of-use asset initially measured at the present value of amounts expected to be paid over the term. Recognition of the costs of these leases on the income statement will be dependent upon their classification as either an operating or a financing lease. Costs of an operating lease will continue to be recognized as a single operating expense on a straight-line basis over the lease term. Costs for a financing lease will be disaggregated and recognized as both an operating expense (for the amortization of the right-of-use asset) and interest expense (for interest on the lease liability). This standard will be effective for our interim and annual periods beginning January 1, 2019, and must be applied on a modified retrospective basis to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We do not plan to adopt this standard early. We are currently evaluating the potential impact of this standard on our financial position, but we do not expect it to have a material impact on our results of operations. ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that expand disclosures. This standard will be effective for our interim and annual periods beginning January 1, 2020, and permits earlier application but not before periods beginning January 1, 2019. The standard will be applied using a modified retrospective approach. We are currently evaluating the potential impact of this standard, but we do not expect it to have a material impact on our financial position and results of operations. Other standards We do not expect the following standards to have a material impact on our financial position and results of operations. We plan to adopt these standards as of their effective dates. ASU Description Effective Date ASU No. 2016-01 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities January 1, 2018 ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business January 1, 2018 ASU No. 2017-05 Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets January 1, 2018 ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 |
Description of Business, Incl25
Description of Business, Including Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Operating Profit, by Segment | Segment information For Years Ended December 31, 2017 2016 2015 Revenue: Analog $ 9,900 $ 8,536 $ 8,339 Embedded Processing 3,498 3,023 2,787 Other 1,563 1,811 1,874 Total revenue $ 14,961 $ 13,370 $ 13,000 Operating profit: Analog $ 4,468 $ 3,416 $ 3,077 Embedded Processing 1,143 817 611 Other 472 622 634 Total operating profit $ 6,083 $ 4,855 $ 4,322 |
Schedule of Revenue, by Geographic Area | The following geographic area information includes revenue, based on product shipment destination, and property, plant and equipment, based on physical location. The revenue information is not necessarily indicative of the geographic area in which the end applications containing our products are ultimately consumed because our products tend to be shipped to the locations where our customers manufacture their products. Specifically, many of our products are shipped to our customers in China who may include these parts in the manufacture of their own end products, which they may in turn export to their customers around the world. For Years Ended December 31, 2017 2016 2015 Revenue: United States $ 1,901 $ 1,682 $ 1,612 Asia (a) 8,824 8,024 7,910 Europe, Middle East and Africa 2,907 2,393 2,163 Japan 1,049 1,040 1,127 Rest of world 280 231 188 Total revenue $ 14,961 $ 13,370 $ 13,000 (a) Revenue from products shipped into China, including Hong Kong, was $6.6 billion in 2017, $6.0 billion in 2016 and $5.8 billion in 2015. |
Schedule Property, Plant and Equipment by Geographic Area | December 31, 2017 2016 2015 Property, plant and equipment: United States $ 1,469 $ 1,372 $ 1,370 Asia (a) 964 908 958 Europe, Middle East and Africa 97 98 130 Japan 118 115 122 Rest of world 16 19 16 Total property, plant and equipment $ 2,664 $ 2,512 $ 2,596 (a) Property, plant and equipment at our two sites |
Basis of Presentation and Sig26
Basis of Presentation and Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Earnings per Share, Basic and Diluted | Computation and reconciliation of earnings per common share are as follows (shares in millions): For Years Ended December 31, 2017 2016 2015 Net Net Net Income Shares EPS Income Shares EPS Income Shares EPS Basic EPS: Net income $ 3,682 $ 3,595 $ 2,986 Income allocated to RSUs (34 ) (45 ) (43 ) Income allocated to common stock for basic EPS calculation $ 3,648 991 $ 3.68 $ 3,550 1,003 $ 3.54 $ 2,943 1,030 $ 2.86 Adjustment for dilutive shares: Stock compensation plans 21 18 13 Diluted EPS: Net income $ 3,682 $ 3,595 $ 2,986 Income allocated to RSUs (33 ) (44 ) (42 ) Income allocated to common stock for diluted EPS calculation $ 3,649 1,012 $ 3.61 $ 3,551 1,021 $ 3.48 $ 2,944 1,043 $ 2.82 |
Effects on Consolidated Statements of Income | Adoption of this standard did not impact Revenue, Net income, Earnings per common share or Cash flows from operating activities. The following components on the Consolidated Statements of Income were affected: For The Years Ended December 31, 2016 2015 Reported Recast Reported Recast COR $ 5,130 $ 5,113 $ 5,440 $ 5,425 Gross profit 8,240 8,257 7,560 7,575 R&D 1,370 1,356 1,280 1,267 SG&A 1,767 1,742 1,748 1,728 Operating profit: Analog 3,380 3,416 3,048 3,077 Embedded Processing 801 817 596 611 Other 618 622 630 634 Total operating profit 4,799 4,855 4,274 4,322 OI&E 211 155 32 (16 ) |
Restructuring Charges_Other (Ta
Restructuring Charges/Other (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Charges and Other | Restructuring charges/other is comprised of the following components: For Years Ended December 31, 2017 2016 2015 Restructuring charges (a) $ 11 $ 25 $ 14 Gains on sales of assets — (40 ) (83 ) Other — — (2 ) Restructuring charges/other $ 11 $ (15 ) $ (71 ) (a) Includes severance and benefits, accelerated depreciation, changes in estimates or other exit costs. |
Changes in Accrued Restructuring Balances | Changes in accrued restructuring balances 2017 2016 2015 Balance, January 1 $ 40 $ 32 $ 57 Restructuring charges 11 25 14 Non-cash items (a) (1 ) (6 ) — Payments (21 ) (11 ) (39 ) Balance, December 31 $ 29 $ 40 $ 32 (a) Reflects charges for impacts of accelerated depreciation and changes in exchange rates. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Compensation Expense Allocation Within the Consolidated Statements of Income | Total stock compensation expense recognized is as follows: For Years Ended December 31, 2017 2016 2015 COR $ 36 $ 40 $ 47 R&D 59 60 60 SG&A 147 152 169 Acquisition charges — — 10 Total $ 242 $ 252 $ 286 |
Schedule of Weighted Average Assumptions Used to Estimate the Fair Values for Non-qualified Stock Options | We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model For Years Ended December 31, 2017 2016 2015 Weighted average grant date fair value, per share $ 16.49 $ 10.03 $ 9.49 Weighted average assumptions used: Expected volatility 24 % 25 % 22 % Expected lives (in years) 7.2 7.3 7.3 Risk-free interest rates 2.36 % 1.72 % 1.64 % Expected dividend yields 2.52 % 2.87 % 2.52 % |
Schedule of Stock Option and RSU Transactions Under Long-term Incentive and Director Compensation Plans | Stock option and RSU transactions under our long-term incentive and director compensation plans are as follows: Stock Options RSUs Weighted Average Weighted Average Exercise Price Grant Date Fair Shares per Share Shares Value per Share Outstanding grants, December 31, 2016 52,265,788 $ 41.89 12,332,379 $ 44.44 Granted 6,474,732 79.28 1,604,469 79.52 Stock options exercised/RSUs vested (13,313,019 ) 37.13 (4,419,464 ) 33.65 Forfeited and expired (672,908 ) 57.12 (291,741 ) 54.34 Outstanding grants, December 31, 2017 44,754,593 48.49 9,225,643 55.40 |
Schedule of Shares Outstanding Under Stock Option Plans, by Exercise Price Range | Summarized information about stock options outstanding as of December 31, 2017 Stock Options Outstanding Options Exercisable Number Weighted Average Weighted Average Number Weighted Average Exercise Price Outstanding Remaining Contractual Exercise Price Exercisable Exercise Price Range (Shares) Life (Years) per Share (Shares) per Share $ 14.47 to 20.00 1,230,810 1.1 $ 14.97 1,230,810 $ 14.97 20.01 to 30.00 2,559,613 1.9 23.86 2,559,613 23.86 30.01 to 40.00 9,441,380 4.3 33.02 9,441,380 33.02 40.01 to 50.00 7,466,229 6.1 44.10 4,403,409 44.10 50.01 to 60.00 17,689,385 7.6 53.42 4,472,432 53.61 60.01 to 70.00 — — — — — 70.01 to 80.00 6,347,174 9.1 79.19 6,470 71.03 80.01 to 97.29 20,002 9.7 88.81 — — 14.47 to 97.29 44,754,593 6.4 48.49 22,114,114 37.34 |
Schedule of Stock Options That are Vested and Expected to Vest, Outstanding and Exercisable | Summarized information as of December 31, 2017 Outstanding Stock Options (Fully Vested and Options Expected to Vest) (a) Exercisable Number of outstanding (shares) 43,804,402 22,114,114 Weighted average remaining contractual life (in years) 6.3 4.8 Weighted average exercise price per share $ 48.12 $ 37.34 Intrinsic value (millions of dollars) $ 2,467 $ 1,484 (a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $2,504 million. |
Schedule of Employee Stock Purchase Plan Transactions | Employee stock purchase plan transactions are as follows: Employee Stock Purchase Plan (Shares) Exercise Price Outstanding grants, December 31, 2016 283,400 $ 62.55 Granted 984,536 55.19 Exercised (1,065,757 ) 67.62 Outstanding grants, December 31, 2017 202,179 89.74 |
Schedule of Changes in Treasury Stock | The following table reflects the changes in our treasury shares: Stock Options RSUs Treasury Shares Balance, December 31, 2014 694,189,127 Repurchases 51,384,339 Shares used for: Stock options/RSUs (11,953,455 ) (3,386,415 ) Stock applied to exercises or taxes 8,562 845,164 ESPP (1,532,264 ) — Director deferred stock units — — (7,531 ) Total issued (13,477,157 ) (2,541,251 ) (16,018,408 ) Balance, December 31, 2015 729,547,527 Repurchases 35,480,036 Shares used for: Stock options/RSUs (14,516,606 ) (5,639,666 ) Stock applied to exercises or taxes — 1,336,476 ESPP (1,362,202 ) — Director deferred stock units — — (13,587 ) Total issued (15,878,808 ) (4,303,190 ) (20,181,998 ) Balance, December 31, 2016 744,831,978 Repurchases 30,570,129 Shares used for: Stock options/RSUs (13,313,019 ) (4,419,464 ) Stock applied to exercises or taxes — 1,058,100 ESPP (1,065,757 ) — Director deferred stock units — — (4,750 ) Total issued (14,378,776 ) (3,361,364 ) (17,740,140 ) Balance, December 31, 2017 757,657,217 |
Schedule of Cash Proceeds Received from Share-based Payment Awards | The effects on cash flows are as follows: For Years Ended December 31, 2017 2016 2015 Proceeds from common stock transactions (a) $ 483 $ 472 $ 396 Tax benefit realized from stock compensation $ 341 $ 255 $ 171 Reduction to deferred tax asset (91 ) (105 ) (81 ) Excess tax benefit for stock compensation $ 250 $ 150 $ 90 (a) Net of taxes paid for employee shares withheld of $83 million in 2017, $70 million in 2016 and $46 million in 2015. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes | Income before income taxes is comprised of the following components: For Years Ended December 31, 2017 2016 2015 U.S. $ 5,130 $ 3,953 $ 3,218 Non-U.S. 950 977 998 Total $ 6,080 $ 4,930 $ 4,216 |
Provision for income taxes | Provision for income taxes is comprised of the following components: For Years Ended December 31, 2017 2016 2015 Current Deferred Total Current Deferred Total Current Deferred Total U.S. federal $ 2,101 $ 51 $ 2,152 $ 1,289 $ (122 ) $ 1,167 $ 1,110 $ (72 ) $ 1,038 Non-U.S. 173 61 234 238 (80 ) 158 168 14 182 U.S. state 12 — 12 10 — 10 7 3 10 Total $ 2,286 $ 112 $ 2,398 $ 1,537 $ (202 ) $ 1,335 $ 1,285 $ (55 ) $ 1,230 |
Principal reconciliation items from U.S. statutory income tax rate to the effective tax rate | Principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (Provision for income taxes as a percentage of Income before income taxes) are as follows: For Years Ended December 31, 2017 2016 2015 U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % U.S. Tax Act 12.7 — — U.S. excess tax benefit for stock compensation (4.1 ) (3.0 ) — Non-U.S. effective tax rates (2.5 ) (3.7 ) (4.0 ) U.S. tax benefit for manufacturing (1.6 ) (1.5 ) (1.6 ) U.S. R&D tax credit (1.1 ) (1.2 ) (1.3 ) Impact of changes to uncertain tax positions 0.7 0.6 0.2 U.S. non-deductible expenses 0.2 0.3 0.3 Other 0.1 0.6 0.6 Effective tax rate 39.4 % 27.1 % 29.2 % |
Primary components of deferred tax assets and liabilities | The primary components of deferred tax assets and liabilities are as follows: December 31, 2017 2016 Deferred tax assets: Deferred loss and tax credit carryforwards $ 256 $ 214 Accrued expenses 119 219 Stock compensation 107 220 Inventories and related reserves 93 145 Retirement costs for defined benefit and retiree health care 38 82 Other 9 81 Total deferred tax assets, before valuation allowance 622 961 Valuation allowance (165 ) (128 ) Total deferred tax assets, after valuation allowance 457 833 Deferred tax liabilities: Acquisition-related intangibles and fair-value adjustments (207 ) (460 ) International earnings (64 ) (32 ) Total deferred tax liabilities (271 ) (492 ) Net deferred tax asset $ 186 $ 341 |
Deferred tax assets and liabilities presentation on the Balance sheet | The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows: December 31, 2017 2016 Deferred tax assets $ 264 $ 374 Deferred tax liabilities (78 ) (33 ) Net deferred tax asset $ 186 $ 341 |
Summary of uncertain tax positions | The changes in the total amounts of uncertain tax positions are as follows: 2017 2016 2015 Balance, January 1 $ 243 $ 84 $ 108 Additions based on tax positions related to the current year 17 4 11 Additions for tax positions of prior years 42 189 3 Reductions for tax positions of prior years (1 ) (2 ) (21 ) Settlements with tax authorities (1 ) (32 ) (17 ) Balance, December 31 $ 300 $ 243 $ 84 Interest income (expense) recognized in the year ended December 31 $ (19 ) $ 4 $ 8 Interest receivable (payable) as of December 31 $ (38 ) $ 13 $ 9 |
Financial Instruments and Ris30
Financial Instruments and Risk Concentration (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Details on Accounts Receivable Allowances | Details of these accounts receivable allowances are as follows: 2017 2016 2015 Balance, January 1 $ 17 $ 7 $ 12 Amounts charged (credited) to operating results (9 ) 10 (5 ) Recoveries and write-offs, net — — — Balance, December 31 $ 8 $ 17 $ 7 |
Valuation of Debt and Equity 31
Valuation of Debt and Equity Investments and Certain Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Investments | Details of our investments are as follows: December 31, 2017 December 31, 2016 Cash and Cash Short-Term Long-Term Cash and Cash Short-Term Long-Term Equivalents Investments Investments Equivalents Investments Investments Measured at fair value: Available-for-sale securities: Money market funds $ 525 $ — $ — $ 346 $ — $ — Corporate obligations 172 698 — 107 544 — U.S. government agency and Treasury securities 700 2,115 — 490 1,792 — Trading securities: Mutual funds — — 236 — — 201 Total 1,397 2,813 236 943 2,336 201 Other measurement basis: Equity-method investments — — 26 — — 25 Cost-method investments — — 6 — — 9 Cash on hand 259 — — 211 — — Total $ 1,656 $ 2,813 $ 268 $ 1,154 $ 2,336 $ 235 |
Assets and Liabilities Accounted for at Fair Value | The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value. December 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Money market funds $ 525 $ — $ 525 $ 346 $ — $ 346 Corporate obligations — 870 870 — 651 651 U.S. government agency and Treasury securities 2,765 50 2,815 2,042 240 2,282 Mutual funds 236 — 236 201 — 201 Total assets $ 3,526 $ 920 $ 4,446 $ 2,589 $ 891 $ 3,480 Liabilities: Deferred compensation $ 255 $ — $ 255 $ 218 $ — $ 218 Total liabilities $ 255 $ — $ 255 $ 218 $ — $ 218 |
Goodwill and Acquisition-Rela32
Goodwill and Acquisition-Related Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill by segment as of December 31, 2017 Goodwill Analog $ 4,158 Embedded Processing 172 Other 32 Total $ 4,362 |
Schedule of Acquisition-Related Intangible Assets | The components of Acquisition-related intangibles are as follows: Amortization December 31, 2017 December 31, 2016 Period Gross Carrying Accumulated Gross Carrying Accumulated (Years) Amount Amortization Net Amount Amortization Net Developed technology 7 - 10 $ 2,130 $ 1,361 $ 769 $ 2,130 $ 1,144 $ 986 Customer relationships 8 810 633 177 810 532 278 Total $ 2,940 $ 1,994 $ 946 $ 2,940 $ 1,676 $ 1,264 |
Estimated Amortization of Acquisition-Related Finite Lived Intangibles for Remaining Years | Remaining estimated amortization of acquisition-related intangibles is as follows: Amortization of Acquisition-Related Intangibles 2018 $ 318 2019 288 2020 198 2021 142 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Expense Related to Defined Benefit and Retiree Health Care Benefit Plans | Expense related to defined benefit and retiree health care benefit plans is as follows: U.S. Defined Benefit U.S. Retiree Health Care Non-U.S. Defined Benefit 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 22 $ 22 $ 22 $ 5 $ 5 $ 5 $ 37 $ 34 $ 35 Interest cost 42 42 43 17 20 20 44 52 53 Expected return on plan assets (41 ) (41 ) (48 ) (17 ) (20 ) (22 ) (62 ) (68 ) (76 ) Amortization of prior service cost (credit) — — — (4 ) (3 ) 2 (2 ) (2 ) (2 ) Recognized net actuarial loss 14 21 19 3 7 8 28 25 24 Net periodic benefit costs 37 44 36 4 9 13 45 41 34 Settlement losses 36 21 25 — — — 2 2 2 Total, including other postretirement losses $ 73 $ 65 $ 61 $ 4 $ 9 $ 13 $ 47 $ 43 $ 36 |
Schedule of Changes in the Benefit Obligations and Plan Assets for the Defined Benefit and Retiree Health Care Benefit Plans | Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows: U.S. U.S. Non-U.S. Defined Benefit Retiree Health Care Defined Benefit 2017 2016 2017 2016 2017 2016 Change in plan benefit obligation Benefit obligation at beginning of year: $ 1,030 $ 1,033 $ 434 $ 463 $ 2,361 $ 2,231 Service cost 22 22 5 5 37 34 Interest cost 42 42 17 20 44 52 Participant contributions — — 9 10 6 6 Benefits paid (9 ) (9 ) (39 ) (38 ) (90 ) (77 ) Medicare subsidy — — — 1 — — Actuarial loss (gain) 109 27 (15 ) (27 ) (52 ) 259 Settlements (196 ) (85 ) — — (13 ) (8 ) Plan amendments — — 3 — — — Effects of exchange rate changes — — — — 176 (136 ) Benefit obligation at end of year (BO) $ 998 $ 1,030 $ 414 $ 434 $ 2,469 $ 2,361 Change in plan assets Fair value of plan assets at beginning of year: $ 1,034 $ 1,019 $ 434 $ 441 $ 2,309 $ 2,134 Actual return on plan assets 123 79 44 20 148 227 Employer contributions (qualified plans) 25 15 1 1 56 160 Employer contributions (non-qualified plans) 18 15 — — — — Participant contributions — — 9 10 6 6 Benefits paid (9 ) (9 ) (39 ) (38 ) (90 ) (77 ) Settlements (196 ) (85 ) — — (13 ) (8 ) Effects of exchange rate changes — — — — 177 (133 ) Other — — (55 ) — — — Fair value of plan assets at end of year (FVPA) $ 995 $ 1,034 $ 394 $ 434 $ 2,593 $ 2,309 Funded status (FVPA – BO) at end of year $ (3 ) $ 4 $ (20 ) $ — $ 124 $ (52 ) |
Schedule of Amounts Recognized in our Balance Sheet | Amounts recognized on our Consolidated Balance Sheets as of December 31, a U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit Total 2017 Overfunded retirement plans $ 58 $ — $ 150 $ 208 Accrued expenses and other liabilities & Other long-term liabilities (13 ) — (5 ) (18 ) Underfunded retirement plans (48 ) (20 ) (21 ) (89 ) Funded status (FVPA – BO) at end of 2017 $ (3 ) $ (20 ) $ 124 $ 101 2016 Overfunded retirement plans $ 66 $ 3 $ 27 $ 96 Accrued expenses and other liabilities & Other long-term liabilities (9 ) — (6 ) (15 ) Underfunded retirement plans (53 ) (3 ) (73 ) (129 ) Funded status (FVPA – BO) at end of 2016 $ 4 $ — $ (52 ) $ (48 ) |
Schedule of Change in AOCI | The change in AOCI is as follows: U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit Total Net Actuarial Loss Net Actuarial Loss Prior Service Credit Net Actuarial Loss Prior Service Credit Net Actuarial Loss Prior Service Credit AOCI balance, net of taxes, December 31, 2016 $ 133 $ 58 $ (11 ) $ 351 $ (6 ) $ 542 $ (17 ) Changes in AOCI by category: Adjustments 28 (41 ) 3 (105 ) — (118 ) 3 Recognized within Net income (51 ) (3 ) 4 (29 ) 2 (83 ) 6 Tax effect 8 15 (2 ) 30 — 53 (2 ) Total change to AOCI (15 ) (29 ) 5 (104 ) 2 (148 ) 7 AOCI balance, net of taxes, December 31, 2017 $ 118 $ 29 $ (6 ) $ 247 $ (4 ) $ 394 $ (10 ) |
Schedule of Allocation of Plan Assets | The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 8. With the adoption of ASU 2015-07, certain assets are no longer subject to disclosure by level of fair value but have been included in the tables below to permit reconciliation to the total plan assets. December 31, 2017 Level 1 Level 2 Level 3 Other (a) Total Assets of U.S. defined benefit plan: Fixed income securities and cash equivalents $ — $ — $ — $ 654 $ 654 Equity securities — — — 341 341 Total $ — $ — $ — $ 995 $ 995 Assets of U.S. retiree health care plan: Fixed income securities and cash equivalents $ 132 $ 2 $ — $ 111 $ 245 Equity securities — — — 149 149 Total $ 132 $ 2 $ — $ 260 $ 394 Assets of non-U.S. defined benefit plans: Fixed income securities and cash equivalents $ 16 $ 183 $ — $ 1,646 $ 1,845 Equity securities 7 23 — 717 747 Other — — 1 — 1 Total $ 23 $ 206 $ 1 $ 2,363 $ 2,593 (a) December 31, 2016 Level 1 Level 2 Level 3 Other (a) Total Assets of U.S. defined benefit plan: Fixed income securities and cash equivalents $ — $ — $ — $ 685 $ 685 Equity securities — — — 349 349 Total $ — $ — $ — $ 1,034 $ 1,034 Assets of U.S. retiree health care plan: Fixed income securities and cash equivalents $ 180 $ 3 $ — $ 44 $ 227 Equity securities — — — 207 207 Total $ 180 $ 3 $ — $ 251 $ 434 Assets of non-U.S. defined benefit plans: Fixed income securities and cash equivalents $ 19 $ 127 $ — $ 1,508 $ 1,654 Equity securities 5 18 — 629 652 Other — — 3 — 3 Total $ 24 $ 145 $ 3 $ 2,137 $ 2,309 (a) Consists of bond index and equity index funds, measured at net asset value per share. The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows: U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit Fixed income securities and cash equivalents 65% 55% - 65% 60% - 100% Equity securities 35% 35% - 45% 0% - 40% Weighted average asset allocations as of December 31 are as follows: U.S. Defined U.S. Retiree Non-U.S. Defined Benefit Health Care Benefit 2017 2016 2017 2016 2017 2016 Fixed income securities and cash equivalents 66% 66% 62% 52% 71% 72% Equity securities 34% 34% 38% 48% 29% 28% |
Schedule of Assumptions Used | Assumptions and investment policies U.S. U.S. Retiree Non-U.S. Defined Benefit Health Care Defined Benefit 2017 2016 2017 2016 2017 2016 Weighted average assumptions used to determine benefit obligations: Discount rate 3.75% 4.29% 3.63% 4.08% 1.84% 1.76% Long-term pay progression 3.30% 3.30% n/a n/a 2.96% 3.11% Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.21% 4.40% 4.08% 4.40% 1.76% 2.41% Long-term rate of return on plan assets 4.30% 4.60% 4.10% 4.40% 2.60% 3.18% Long-term pay progression 3.30% 3.30% n/a n/a 3.11% 3.21% |
Schedule of Assumed Future Benefit Payments | The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets. U.S. Defined U.S. Retiree Non-U.S. Benefit Health Care Defined Benefit 2018 $ 140 $ 30 $ 86 2019 111 31 87 2020 83 31 89 2021 90 30 90 2022 87 30 94 2023 – 2027 410 139 495 |
Schedule of Assumed Health Care Cost Trend Rates for U.S Retiree Health Care Benefit Plan | Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows: 2017 2016 Assumed health care cost trend rate for next year 7.50 % 6.75 % Ultimate trend rate 5.00 % 5.00 % Year in which ultimate trend rate is reached 2028 2024 |
Debt and Lines of Credit (Table
Debt and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt outstanding is as follows: December 31, 2017 2016 Notes due 2017 at 0.875% $ — $ 250 Notes due 2017 at 6.60% (assumed with National acquisition) — 375 Notes due 2018 at 1.00% 500 500 Notes due 2019 at 1.65% 750 750 Notes due 2020 at 1.75% 500 500 Notes due 2021 at 2.75% 550 250 Notes due 2022 at 1.85% 500 500 Notes due 2023 at 2.25% 500 500 Notes due 2024 at 2.625% 300 — Notes due 2027 at 2.90% 500 — Total debt 4,100 3,625 Net unamortized discounts, premiums and debt issuance costs (23 ) (16 ) Total debt, including net unamortized discounts, premiums and debt issuance costs 4,077 3,609 Current portion of long-term debt (500 ) (631 ) Long-term debt $ 3,577 $ 2,978 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Payments Under Purchase Commitments and Non-Cancellable Operating Leases | As of December 31, 2017 Purchase Operating Commitments Leases 2018 $ 391 $ 68 2019 367 45 2020 234 49 2021 37 29 2022 30 24 Thereafter 35 56 |
Supplemental financial inform36
Supplemental financial information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Other income (expense), net (OI&E) | Other income (expense), net (OI&E) For Years Ended December 31, 2017 2016 2015 Royalty income (a) $ 119 $ — $ — Income from settlements related to intellectual property infringement — 188 — Pension and other retiree benefit costs (b) (61 ) (56 ) (48 ) Other (c) 17 23 32 Total $ 75 $ 155 $ (16 ) (a) As of January 1, 2017, royalties are recorded in OI&E. See Note 1 for additional information. (b) Reflects the adoption of ASU 2017-07. See Note 2 for additional information. (c) Other includes interest and lease income, investment and currency gains and losses, and tax interest income and expense. |
Prepaid expenses and other current assets | Prepaid expenses and other current assets December 31, 2017 2016 Prepaid taxes on intercompany inventory profits, net $ 768 $ 566 Other 262 344 Total $ 1,030 $ 910 |
Property, plant and equipment at cost | Property, plant and equipment at cost Depreciable December 31, Lives (Years) 2017 2016 Land n/a $ 127 $ 127 Buildings and improvements 5 - 40 2,467 2,753 Machinery and equipment 2 - 10 2,195 2,043 Total $ 4,789 $ 4,923 |
Other long-term liabilities | Other long-term liabilities December 31, 2017 2016 Long-term portion of tax on indefinitely reinvested earnings $ 635 $ — Other 668 554 Total $ 1,303 $ 554 |
Accumulated other comprehensive income (loss), net of taxes (AOCI) | Accumulated other comprehensive income (loss), net of taxes (AOCI) December 31, 2017 2016 Postretirement benefit plans: Net actuarial loss $ (394 ) $ (542 ) Prior service credit 10 17 Cash flow hedge derivative instruments — (1 ) Total $ (384 ) $ (526 ) |
Amounts Reclassified Out of AOCI to Net Income, Net of Taxes | The table below details where these transactions are recorded in our Consolidated Statements of Income. For Years Ended Impact to December 31, Related Statement 2017 2016 2015 of Income Line Net actuarial losses of defined benefit plans: Recognized net actuarial loss and Settlement losses (a) $ 83 $ 76 $ 78 Decrease to OI&E Tax effect (27 ) (25 ) (25 ) Decrease to Provision for income taxes Recognized within Net income, net of taxes $ 56 $ 51 $ 53 Decrease to Net income Prior service credit of defined benefit plans: Amortization of prior service cost (credit) (a) $ (6 ) $ (5 ) $ — Increase to OI&E Tax effect 1 2 — Increase to Provision for income taxes Recognized within Net income, net of taxes $ (5 ) $ (3 ) $ — Increase to Net income Derivative instruments: Amortization of treasury-rate locks $ 1 $ 1 $ 2 Increase to Interest and debt expense Tax effect — — (1 ) Decrease to Provision for income taxes Recognized within Net income, net of taxes $ 1 $ 1 $ 1 Decrease to Net income (a) Detailed in Note 10. |
Quarterly financial data (una37
Quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | As a result of our early adoption of ASU 2017-07, we have recast Gross profit and Operating profit for 2016 to conform to the new presentation. See Note 2 for additional information. 2017 Quarters 2016 Quarters 4th 3rd 2nd 1st 4th 3rd 2nd 1st Revenue $ 3,750 $ 4,116 $ 3,693 $ 3,402 $ 3,414 $ 3,675 $ 3,273 $ 3,008 Gross profit 2,440 2,656 2,374 2,144 2,137 2,284 2,007 1,829 Included in Operating profit: Acquisition charges 79 80 79 80 80 80 79 80 Restructuring charges/other 3 1 3 4 (20 ) 1 2 2 Operating profit 1,563 1,788 1,480 1,252 1,332 1,408 1,131 984 Net income 344 1,285 1,056 997 1,047 1,018 819 711 Basic EPS $ 0.35 $ 1.29 $ 1.05 $ 0.99 $ 1.04 $ 1.00 $ 0.81 $ 0.70 Diluted EPS $ 0.34 $ 1.26 $ 1.03 $ 0.97 $ 1.02 $ 0.98 $ 0.79 $ 0.69 |
Description of Business, Incl38
Description of Business, Including Segment and Geographic Area Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017Reportable_Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Description of Business, Incl39
Description of Business, Including Segment and Geographic Area Information - Schedule of Revenue and Operating Profit by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 3,750 | $ 4,116 | $ 3,693 | $ 3,402 | $ 3,414 | $ 3,675 | $ 3,273 | $ 3,008 | $ 14,961 | $ 13,370 | $ 13,000 |
Operating profit | $ 1,563 | $ 1,788 | $ 1,480 | $ 1,252 | $ 1,332 | $ 1,408 | $ 1,131 | $ 984 | 6,083 | 4,855 | 4,322 |
Analog | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 9,900 | 8,536 | 8,339 | ||||||||
Operating profit | 4,468 | 3,416 | 3,077 | ||||||||
Embedded Processing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 3,498 | 3,023 | 2,787 | ||||||||
Operating profit | 1,143 | 817 | 611 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,563 | 1,811 | 1,874 | ||||||||
Operating profit | $ 472 | $ 622 | $ 634 |
Description of Business, Incl40
Description of Business, Including Segment and Geographic Area Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | $ 3,750 | $ 4,116 | $ 3,693 | $ 3,402 | $ 3,414 | $ 3,675 | $ 3,273 | $ 3,008 | $ 14,961 | $ 13,370 | $ 13,000 | |
United States | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 1,901 | 1,682 | 1,612 | |||||||||
Asia | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | [1] | 8,824 | 8,024 | 7,910 | ||||||||
Europe, Middle East And Africa | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 2,907 | 2,393 | 2,163 | |||||||||
Japan | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 1,049 | 1,040 | 1,127 | |||||||||
Rest of world | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | $ 280 | $ 231 | $ 188 | |||||||||
[1] | Revenue from products shipped into China, including Hong Kong, was $6.6 billion in 2017, $6.0 billion in 2016 and $5.8 billion in 2015 |
Description of Business, Incl41
Description of Business, Including Segment and Geographic Area Information - Schedule of Revenue by Geographic Area (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 3,750 | $ 4,116 | $ 3,693 | $ 3,402 | $ 3,414 | $ 3,675 | $ 3,273 | $ 3,008 | $ 14,961 | $ 13,370 | $ 13,000 |
China (including Hong Kong) | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 6,600 | $ 6,000 | $ 5,800 |
Description of Business, Incl42
Description of Business, Including Segment and Geographic Area Information - Schedule of Property, Plant and Equipment by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment | $ 2,664 | $ 2,512 | $ 2,596 | |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment | 1,469 | 1,372 | 1,370 | |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment | [1] | 964 | 908 | 958 |
Europe, Middle East And Africa | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment | 97 | 98 | 130 | |
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment | 118 | 115 | 122 | |
Rest of world | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment | $ 16 | $ 19 | $ 16 | |
[1] | Property, plant and equipment at our two sites in the Philippines was $437 million, $412 million and $471 million as of December 31, 2017, 2016 and 2015, respectively. |
Description of Business, Incl43
Description of Business, Including Segment and Geographic Area Information - Schedule of Property, Plant and Equipment by Geographic Area (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | $ 2,664 | $ 2,512 | $ 2,596 |
Philippines | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | $ 437 | $ 412 | $ 471 |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies and Practices - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Advertising expense | $ 39 | $ 44 | $ 46 |
Antidilutive securities excluded from computation of earnings per share, Amount (in shares) | 6 | 0 | 12 |
Maximum length to maturity of a security, from the investment date, where it is classified as cash and cash equivalent | 90 days | ||
Length to maturity from the investment date of a security where the length of time is too short to be classified as a short-term investment | 90 days | ||
Consigned inventory | $ 303 | $ 334 |
Basis of Presentation and Sig45
Basis of Presentation and Significant Accounting Policies and Practices - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic EPS: | |||||||||||
Net income | $ 344 | $ 1,285 | $ 1,056 | $ 997 | $ 1,047 | $ 1,018 | $ 819 | $ 711 | $ 3,682 | $ 3,595 | $ 2,986 |
Income allocated to RSUs | (34) | (45) | (43) | ||||||||
Income allocated to common stock for basic EPS | $ 3,648 | $ 3,550 | $ 2,943 | ||||||||
Weighted average number of shares outstanding, basic (in shares) | 991 | 1,003 | 1,030 | ||||||||
Basic earnings per common share | $ 0.35 | $ 1.29 | $ 1.05 | $ 0.99 | $ 1.04 | $ 1 | $ 0.81 | $ 0.70 | $ 3.68 | $ 3.54 | $ 2.86 |
Adjustment for dilutive shares: | |||||||||||
Stock compensation plans | 21 | 18 | 13 | ||||||||
Diluted EPS: | |||||||||||
Net income | $ 344 | $ 1,285 | $ 1,056 | $ 997 | $ 1,047 | $ 1,018 | $ 819 | $ 711 | $ 3,682 | $ 3,595 | $ 2,986 |
Income allocated to RSUs | (33) | (44) | (42) | ||||||||
Income allocated to common stock for diluted EPS | $ 3,649 | $ 3,551 | $ 2,944 | ||||||||
Weighted average number of shares outstanding, diluted (in shares) | 1,012 | 1,021 | 1,043 | ||||||||
Diluted earnings per common share | $ 0.34 | $ 1.26 | $ 1.03 | $ 0.97 | $ 1.02 | $ 0.98 | $ 0.79 | $ 0.69 | $ 3.61 | $ 3.48 | $ 2.82 |
Basis of Presentation and Sig46
Basis of Presentation and Significant Accounting Policies and Practices - Effects on Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
COR | $ 5,347 | $ 5,113 | $ 5,425 | ||||||||
Gross profit | $ 2,440 | $ 2,656 | $ 2,374 | $ 2,144 | $ 2,137 | $ 2,284 | $ 2,007 | $ 1,829 | 9,614 | 8,257 | 7,575 |
R&D | 1,508 | 1,356 | 1,267 | ||||||||
SG&A | 1,694 | 1,742 | 1,728 | ||||||||
Total operating profit | $ 1,563 | $ 1,788 | $ 1,480 | $ 1,252 | $ 1,332 | $ 1,408 | $ 1,131 | $ 984 | 6,083 | 4,855 | 4,322 |
OI&E | 75 | 155 | (16) | ||||||||
ASU No. 2017-07 | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
COR | 5,113 | 5,425 | |||||||||
Gross profit | 8,257 | 7,575 | |||||||||
R&D | 1,356 | 1,267 | |||||||||
SG&A | 1,742 | 1,728 | |||||||||
Total operating profit | 4,855 | 4,322 | |||||||||
OI&E | 155 | (16) | |||||||||
ASU No. 2017-07 | Reported | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
COR | 5,130 | 5,440 | |||||||||
Gross profit | 8,240 | 7,560 | |||||||||
R&D | 1,370 | 1,280 | |||||||||
SG&A | 1,767 | 1,748 | |||||||||
Total operating profit | 4,799 | 4,274 | |||||||||
OI&E | 211 | 32 | |||||||||
Analog | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | 4,468 | 3,416 | 3,077 | ||||||||
Analog | ASU No. 2017-07 | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | 3,416 | 3,077 | |||||||||
Analog | ASU No. 2017-07 | Reported | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | 3,380 | 3,048 | |||||||||
Embedded Processing | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | 1,143 | 817 | 611 | ||||||||
Embedded Processing | ASU No. 2017-07 | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | 817 | 611 | |||||||||
Embedded Processing | ASU No. 2017-07 | Reported | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | 801 | 596 | |||||||||
Other | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | $ 472 | 622 | 634 | ||||||||
Other | ASU No. 2017-07 | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | 622 | 634 | |||||||||
Other | ASU No. 2017-07 | Reported | |||||||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||||||
Total operating profit | $ 618 | $ 630 |
Restructuring Charges_Other - C
Restructuring Charges/Other - Components of Restructuring Charges and Other (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Restructuring And Related Activities [Abstract] | ||||||||||||
Restructuring charges | [1] | $ 11 | $ 25 | $ 14 | ||||||||
Gains on sales of assets | 0 | (40) | (83) | |||||||||
Other | 0 | 0 | (2) | |||||||||
Restructuring charges/other | $ 3 | $ 1 | $ 3 | $ 4 | $ (20) | $ 1 | $ 2 | $ 2 | $ 11 | $ (15) | $ (71) | |
[1] | Includes severance and benefits, accelerated depreciation, changes in estimates or other exit costs. |
Restructuring Charges_Other - A
Restructuring Charges/Other - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)Reportable_SegmentsJobs | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Restructuring Cost And Reserve [Line Items] | ||||
Number of reportable segments | Reportable_Segments | 2 | |||
Restructuring charges | [1] | $ 11,000,000 | $ 25,000,000 | $ 14,000,000 |
Payments for restructuring | 21,000,000 | 11,000,000 | 39,000,000 | |
Gain on sale of intellectual property | 40,000,000 | |||
Gains on sales of assets | 0 | 40,000,000 | 83,000,000 | |
Site in Plano, Texas | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Gains on sales of assets | 48,000,000 | |||
Manufacturing facility in Houston, Texas | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Gains on sales of assets | 34,000,000 | |||
Product Line Reorganization | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 3,000,000 | 18,000,000 | ||
Product Line Reorganization | Employee Severance | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments for restructuring | 16,000,000 | |||
Manufacturing Facility in Greenock, Scotland | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 8,000,000 | $ 7,000,000 | $ 17,000,000 | |
Estimated restructuring charges primarily severance and benefits cost | $ 40,000,000 | |||
Expected reductions of jobs | Jobs | 350 | |||
[1] | Includes severance and benefits, accelerated depreciation, changes in estimates or other exit costs. |
Restructuring Charges_Other - R
Restructuring Charges/Other - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Restructuring And Related Activities [Abstract] | ||||
Balance, January 1 | $ 40 | $ 32 | $ 57 | |
Restructuring charges | [1] | 11 | 25 | 14 |
Non-cash items | [2] | (1) | (6) | 0 |
Payments | (21) | (11) | (39) | |
Balance, December 31 | $ 29 | $ 40 | $ 32 | |
[1] | Includes severance and benefits, accelerated depreciation, changes in estimates or other exit costs. | |||
[2] | Reflects charges for impacts of accelerated depreciation and changes in exchange rates. |
Stock Compensation - Additional
Stock Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of shares remaining available for future issuance | 53,595,374 | |||
Future compensation cost not yet recognized in the Statements of Income | $ 237 | |||
Future compensation costs to be recognized in 2018 | 123 | |||
Future compensation costs to be recognized in 2019 | 73 | |||
Future compensation costs to be recognized in 2020 | 37 | |||
Future compensation costs to be recognized in 2021 | 4 | |||
Remaining stock repurchase authorizations | $ 9,240 | |||
Employee stock purchase plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Percent of the underlying common stock's market price participants pay for options (in hundredths) | 85.00% | |||
Employee stock purchase plan option term (in months) | three-month | |||
Number of shares remaining available for future issuance | 35,402,636 | |||
Aggregate intrinsic values of options exercised | $ 13 | $ 12 | $ 12 | |
Weighted-average exercise price, Exercised (in dollars per share) | $ 67.62 | |||
Outstanding options exercisable (in shares) | 0 | |||
Weighted average grant date fair value of options granted (dollars per share) | $ 12.99 | $ 9.79 | $ 7.89 | |
Employee stock purchase plan | Subsequent Event | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Weighted-average exercise price, Exercised (in dollars per share) | $ 89.74 | |||
Employee Stock Option | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Look back period to determine option life used in Black Scholes Merton pricing model | 10 years | |||
Long-term incentive and director compensation plans | Employee Stock Option | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Term of the long term incentive stock options | 10 years | |||
Award vesting period (in years) | 4 years | |||
Aggregate intrinsic values of options exercised | $ 632 | $ 424 | $ 290 | |
Future compensation cost not yet recognized in the Statements of Income | $ 108 | |||
Weighted-average exercise price, Exercised (in dollars per share) | $ 37.13 | |||
Outstanding options exercisable (in shares) | 22,114,114 | |||
Long-term incentive and director compensation plans | Restricted Stock Units (RSUs) | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Long-term incentive plan RSU conversion to common stock feature | Each RSU represents the right to receive one share of TI common stock on the vesting date | |||
Weighted-average grant-date fair value, Granted (in dollars per share) | $ 79.52 | $ 53.98 | $ 53.22 | |
Total fair values of shares vested from RSU lapses | $ 149 | $ 178 | $ 114 | |
Future compensation cost not yet recognized in the Statements of Income | $ 129 |
Stock Compensation - Expense (D
Stock Compensation - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 242 | $ 252 | $ 286 |
COR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 36 | 40 | 47 |
R&D | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 59 | 60 | 60 |
SG&A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 147 | 152 | 169 |
Acquisition charges | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | $ 0 | $ 10 |
Stock Compensation - Fair-value
Stock Compensation - Fair-value Methods and Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Fair value assumptions method used for non-qualified stock options | Black-Scholes-Merton option-pricing model | ||
Weighted average grant date fair value, per share (in dollars per share) | $ 16.49 | $ 10.03 | $ 9.49 |
Expected volatility (in percent) | 24.00% | 25.00% | 22.00% |
Expected lives | 7 years 2 months 12 days | 7 years 3 months 18 days | 7 years 3 months 18 days |
Risk-free interest rates (in percent) | 2.36% | 1.72% | 1.64% |
Expected dividend yields (in percent) | 2.52% | 2.87% | 2.52% |
Stock Compensation - Stock Opti
Stock Compensation - Stock Options and RSUs Outstanding (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Option | |||
Stock Options, Shares | |||
Exercised (in shares) | (13,313,019) | (14,516,606) | (11,953,455) |
Employee Stock Option | Long-term incentive and director compensation plans | |||
Stock Options, Shares | |||
Options outstanding, Beginning balance (in shares) | 52,265,788 | ||
Granted (in shares) | 6,474,732 | ||
Exercised (in shares) | (13,313,019) | ||
Forfeited and expired (in shares) | (672,908) | ||
Options outstanding, Ending balance (in shares) | 44,754,593 | 52,265,788 | |
Stock Options, Weighted Average Exercise Price per Share | |||
Weighted-average exercise price, Outstanding, Beginning of period (in dollars per share) | $ 41.89 | ||
Weighted-average exercise price, Granted (in dollars per share) | 79.28 | ||
Weighted-average exercise price, Exercised (in dollars per share) | 37.13 | ||
Weighted-average exercise price, Forfeited and expired (in dollars per share) | 57.12 | ||
Weighted-average exercise price, Outstanding, End of period (in dollars per share) | $ 48.49 | $ 41.89 | |
Restricted Stock Units (RSUs) | |||
Restricted Stock Units, Shares | |||
Vested (in shares) | (4,419,464) | (5,639,666) | (3,386,415) |
Restricted Stock Units (RSUs) | Long-term incentive and director compensation plans | |||
Restricted Stock Units, Shares | |||
Awards outstanding other than options, Beginning balance (in shares) | 12,332,379 | ||
Granted (in shares) | 1,604,469 | ||
Vested (in shares) | (4,419,464) | ||
Forfeited and expired (in shares) | (291,741) | ||
Awards outstanding other than options, Ending balance (in shares) | 9,225,643 | 12,332,379 | |
Restricted Stock Units, Weighted Average Grant Date Fair Value per Share | |||
Weighted-average grant date fair value, Beginning of period (in dollars per share) | $ 44.44 | ||
Weighted-average grant-date fair value, Granted (in dollars per share) | 79.52 | $ 53.98 | $ 53.22 |
Weighted-average grant date fair value, Vested (in dollars per share) | 33.65 | ||
Weighted-average grant date fair value, Forfeited and expired (in dollars per share) | 54.34 | ||
Weighted-average grant date fair value, Ending of period (in dollars per share) | $ 55.40 | $ 44.44 |
Stock Compensation - Exercise P
Stock Compensation - Exercise Price Range (Details) - Employee Stock Option - Long-term incentive and director compensation plans - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | $ 14.47 | |
Exercise Price Range, Maximum | $ 97.29 | |
Number Outstanding (Shares) | 44,754,593 | 52,265,788 |
Weighted Average Remaining Contractual Life (Years) | 6 years 4 months 24 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 48.49 | $ 41.89 |
Number Exercisable (Shares) | 22,114,114 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 37.34 | |
Range Of Exercise Prices $14.47 to $20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 14.47 | |
Exercise Price Range, Maximum | $ 20 | |
Number Outstanding (Shares) | 1,230,810 | |
Weighted Average Remaining Contractual Life (Years) | 1 year 1 month 6 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 14.97 | |
Number Exercisable (Shares) | 1,230,810 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 14.97 | |
Range Of Exercise Prices $20.01 to $30.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 20.01 | |
Exercise Price Range, Maximum | $ 30 | |
Number Outstanding (Shares) | 2,559,613 | |
Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 24 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 23.86 | |
Number Exercisable (Shares) | 2,559,613 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 23.86 | |
Range Of Exercise Prices $30.01 to $40.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 30.01 | |
Exercise Price Range, Maximum | $ 40 | |
Number Outstanding (Shares) | 9,441,380 | |
Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 18 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 33.02 | |
Number Exercisable (Shares) | 9,441,380 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 33.02 | |
Range Of Exercise Prices $40.01 to $50.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 40.01 | |
Exercise Price Range, Maximum | $ 50 | |
Number Outstanding (Shares) | 7,466,229 | |
Weighted Average Remaining Contractual Life (Years) | 6 years 1 month 6 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 44.10 | |
Number Exercisable (Shares) | 4,403,409 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 44.10 | |
Range Of Exercise Prices $50.01 to $60.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 50.01 | |
Exercise Price Range, Maximum | $ 60 | |
Number Outstanding (Shares) | 17,689,385 | |
Weighted Average Remaining Contractual Life (Years) | 7 years 7 months 6 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 53.42 | |
Number Exercisable (Shares) | 4,472,432 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 53.61 | |
Range Of Exercise Prices $60.01 to 70.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 60.01 | |
Exercise Price Range, Maximum | $ 70 | |
Number Outstanding (Shares) | 0 | |
Weighted Average Remaining Contractual Life (Years) | 0 years | |
Options Outstanding Weighted Average Exercise Price per Share | $ 0 | |
Number Exercisable (Shares) | 0 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 0 | |
Range Of Exercise Prices $70.01 to 80.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 70.01 | |
Exercise Price Range, Maximum | $ 80 | |
Number Outstanding (Shares) | 6,347,174 | |
Weighted Average Remaining Contractual Life (Years) | 9 years 1 month 6 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 79.19 | |
Number Exercisable (Shares) | 6,470 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 71.03 | |
Range Of Exercise Prices $80.01 to 97.29 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Minimum | 80.01 | |
Exercise Price Range, Maximum | $ 97.29 | |
Number Outstanding (Shares) | 20,002 | |
Weighted Average Remaining Contractual Life (Years) | 9 years 8 months 12 days | |
Options Outstanding Weighted Average Exercise Price per Share | $ 88.81 | |
Number Exercisable (Shares) | 0 | |
Options Exercisable Weighted Average Exercise Price per Share | $ 0 |
Stock Compensation - Options Ve
Stock Compensation - Options Vested and Expected to Vest (Details) - Long-term incentive and director compensation plans - Employee Stock Option $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of outstanding shares, vested and expected to vest (in shares) | shares | 43,804,402 | [1] |
Weighted average remaining contractual life, vested and expected to vest (in years) | 6 years 3 months 18 days | [1] |
Weighted average exercise price per share, vested and expected to vest (in dollars per share) | $ / shares | $ 48.12 | [1] |
Intrinsic value, vested and expected to vest (millions of dollars) | $ | $ 2,467 | [1] |
Outstanding options exercisable (in shares) | shares | 22,114,114 | |
Weighted average remaining contractual life, options exercisable | 4 years 9 months 18 days | |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ / shares | $ 37.34 | |
Intrinsic value, options exercisable (millions of dollars) | $ | $ 1,484 | |
[1] | Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $2,504 million. |
Stock Compensation - Options 56
Stock Compensation - Options Vested and Expected to Vest (Parenthetical) (Details) - Long-term incentive and director compensation plans - Employee Stock Option shares in Millions, $ in Millions | Dec. 31, 2017USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeitures, effects of which are included (in shares) | shares | 1 |
Aggregate intrinsic value of stock options outstanding, excluding the effects of expected forfeitures | $ | $ 2,504 |
Stock Compensation - Employee S
Stock Compensation - Employee Stock Purchase Plan (Details) - Employee stock purchase plan | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, Beginning balance (in shares) | shares | 283,400 |
Granted (in shares) | shares | 984,536 |
Exercised (in shares) | shares | (1,065,757) |
Options outstanding, Ending balance (in shares) | shares | 202,179 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price, Outstanding, Beginning of period (in dollars per share) | $ / shares | $ 62.55 |
Weighted-average exercise price, Granted (in dollars per share) | $ / shares | 55.19 |
Weighted-average exercise price, Exercised (in dollars per share) | $ / shares | 67.62 |
Weighted-average exercise price, Outstanding, End of period (in dollars per share) | $ / shares | $ 89.74 |
Stock Compensation - Effect on
Stock Compensation - Effect on Shares Outstanding and Treasury Shares (Details) - shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Changes in Treasury Stock [Line Items] | ||||
Treasury stock (in shares) | 757,657,217 | 744,831,978 | 729,547,527 | 694,189,127 |
Repurchases | 30,570,129 | 35,480,036 | 51,384,339 | |
Total issued (in shares) | (17,740,140) | (20,181,998) | (16,018,408) | |
Director | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Director deferred stock units issued (in shares) | (4,750) | (13,587) | (7,531) | |
Employee Stock Option | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Exercised (in shares) | (13,313,019) | (14,516,606) | (11,953,455) | |
Stock applied to exercises or taxes | 0 | 0 | 8,562 | |
Total issued (in shares) | (14,378,776) | (15,878,808) | (13,477,157) | |
Employee Stock Option | Director | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Director deferred stock units issued (in shares) | 0 | 0 | 0 | |
Restricted Stock Units (RSUs) | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Vested RSUs (in shares) | (4,419,464) | (5,639,666) | (3,386,415) | |
Stock applied to exercises or taxes | 1,058,100 | 1,336,476 | 845,164 | |
Total issued (in shares) | (3,361,364) | (4,303,190) | (2,541,251) | |
Restricted Stock Units (RSUs) | Director | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Director deferred stock units issued (in shares) | 0 | 0 | 0 | |
Employee stock purchase plan | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Exercised (in shares) | (1,065,757) | |||
Employee stock purchase plan | Employee Stock Option | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Exercised (in shares) | (1,065,757) | (1,362,202) | (1,532,264) | |
Employee stock purchase plan | Restricted Stock Units (RSUs) | ||||
Schedule of Changes in Treasury Stock [Line Items] | ||||
Vested RSUs (in shares) | 0 | 0 | 0 |
Stock Compensation - Effects on
Stock Compensation - Effects on Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Proceeds from common stock transactions | [1] | $ 483 | $ 472 | $ 396 |
Tax benefit realized from stock compensation | 341 | 255 | 171 | |
Reduction to deferred tax asset | (91) | (105) | (81) | |
Excess tax benefit for stock compensation | $ 250 | $ 150 | $ 90 | |
[1] | Net of taxes paid for employee shares withheld of $83 million in 2017, $70 million in 2016 and $46 million in 2015. |
Stock Compensation - Effects 60
Stock Compensation - Effects on Cash Flows (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Taxes paid for employee shares withheld | $ 83 | $ 70 | $ 46 |
Profit Sharing Plans - Addition
Profit Sharing Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit Sharing Plans [Abstract] | |||
Minimum percentage amount of operating margin the company must attain for full calendar year for any profit sharing per individual to be paid (in hundredths) | 10.00% | ||
Amount of gross compensation eligible for profit sharing deferral per individual in calendar year when minimum operating margin is attained by company (in hundredths) | 2.00% | ||
Maximum amount of gross compensation eligible for profit sharing per individual in calendar year when 35% operating margin is attained by company (in hundredths) | 20.00% | ||
Percentage of operating margin the company must attain for full calendar year for maximum amount of profit sharing per individual to be paid (in hundredths) | 35.00% | ||
Profit sharing expense | $ 355 | $ 346 | $ 309 |
Income taxes - Income before in
Income taxes - Income before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes - U.S. | $ 5,130 | $ 3,953 | $ 3,218 |
Income before income taxes - Non-U.S. | 950 | 977 | 998 |
Income before income taxes | $ 6,080 | $ 4,930 | $ 4,216 |
Income taxes - Provision for in
Income taxes - Provision for income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal - Current | $ 2,101 | $ 1,289 | $ 1,110 |
Non-U.S. - Current | 173 | 238 | 168 |
U.S. state - Current | 12 | 10 | 7 |
Total current income tax expense (benefit) | 2,286 | 1,537 | 1,285 |
U.S. federal - Deferred | 51 | (122) | (72) |
Non-U.S. - Deferred | 61 | (80) | 14 |
U.S. state - Deferred | 0 | 0 | 3 |
Total deferred income tax expense (benefit) | 112 | (202) | (55) |
Total U.S. federal income taxes | 2,152 | 1,167 | 1,038 |
Total Non-U.S. income taxes | 234 | 158 | 182 |
Total U.S. state income taxes | 12 | 10 | 10 |
Provision for income taxes | $ 2,398 | $ 1,335 | $ 1,230 |
Income taxes - Reconciliation i
Income taxes - Reconciliation items from U.S. statutory income tax rate to the effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
U.S. Tax Act | 12.70% | ||
U.S. excess tax benefit for stock compensation | (4.10%) | (3.00%) | |
Non-U.S. effective tax rates | (2.50%) | (3.70%) | (4.00%) |
U.S. tax benefit for manufacturing | (1.60%) | (1.50%) | (1.60%) |
U.S. R&D tax credit | (1.10%) | (1.20%) | (1.30%) |
Impact of changes to uncertain tax positions | 0.70% | 0.60% | 0.20% |
U.S. non-deductible expenses | 0.20% | 0.30% | 0.30% |
Other | 0.10% | 0.60% | 0.60% |
Effective tax rate | 39.40% | 27.10% | 29.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
Additional tax expense | $ 773,000,000 | ||||
Increase in effective tax rate | 12.70% | ||||
Non-U.S. earnings, Increase in income tax expense | $ 714,000,000 | ||||
Remeasurement of deferred tax balance | 59,000,000 | ||||
Unrecognized deferred tax liabilities | 0 | ||||
Increase (decrease) in valuation allowance balances | 37,000,000 | $ (58,000,000) | |||
Net income impacted due to change in valuation allowances | 0 | 63,000,000 | |||
Tax loss carryforward, U.S. and non-U.S. | 6,000,000 | ||||
Tax loss carryforward, U.S. and non-U.S., set to expire | 0 | ||||
Cash payments for income taxes | 1,800,000,000 | 1,150,000,000 | $ 1,170,000,000 | ||
Liabilities for uncertain tax positions | 300,000,000 | 243,000,000 | $ 84,000,000 | $ 108,000,000 | |
Amount of deferred tax assets possibly to be realized | $ 13,000,000 | $ 12,000,000 | |||
Scenario, Forecast | |||||
Income Tax Disclosure [Line Items] | |||||
U.S. statutory income tax rate | 21.00% |
Income taxes - Components of de
Income taxes - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Deferred loss and tax credit carryforwards | $ 256 | $ 214 |
Accrued expenses | 119 | 219 |
Stock compensation | 107 | 220 |
Inventories and related reserves | 93 | 145 |
Retirement costs for defined benefit and retiree health care | 38 | 82 |
Other | 9 | 81 |
Total deferred tax assets, before valuation allowance | 622 | 961 |
Valuation allowance | (165) | (128) |
Total deferred tax assets, after valuation allowance | 457 | 833 |
Deferred tax liabilities: | ||
Acquisition-related intangibles and fair-value adjustments | (207) | (460) |
International earnings | (64) | (32) |
Total deferred tax liabilities | (271) | (492) |
Net deferred tax asset | $ 186 | $ 341 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 264 | $ 374 |
Deferred tax liabilities | (78) | (33) |
Net deferred tax asset | $ 186 | $ 341 |
Income taxes - Uncertain tax po
Income taxes - Uncertain tax positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 243 | $ 84 | $ 108 |
Additions based on tax positions related to the current year | 17 | 4 | 11 |
Additions for tax positions of prior years | 42 | 189 | 3 |
Reductions for tax positions of prior years | (1) | (2) | (21) |
Settlements with tax authorities | (1) | (32) | (17) |
Balance, December 31 | 300 | 243 | 84 |
Interest income (expense) recognized in the year ended December 31 | (19) | 4 | 8 |
Interest receivable (payable) as of December 31 | $ (38) | $ 13 | $ 9 |
Financial Instruments and Ris69
Financial Instruments and Risk Concentration - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Customer | Dec. 31, 2016Customer | Dec. 31, 2015 | |
Direct sales to major customer | Sales Revenue Segment | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Sales to major customer | 11.00% | ||
Customer accounted for 10% or more of revenue | Customer | 0 | 0 | |
Foreign Exchange Forward | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | $ 365 | ||
Foreign Exchange Forward | Japanese Yen | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | 140 | ||
Foreign Exchange Forward | Euros | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | 49 | ||
Foreign Exchange Forward | British Pound Sterling | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Notional value of forward foreign currency exchange contracts | $ 59 |
Financial Instruments and Ris70
Financial Instruments and Risk Concentration - Schedule of Accounts Receivable Allowances (Details) - Allowance for doubtful accounts, current - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 17 | $ 7 | $ 12 |
Amounts charged (credited) to operating results | (9) | 10 | (5) |
Recoveries and write-offs, net | 0 | 0 | 0 |
Balance at end of year | $ 8 | $ 17 | $ 7 |
Valuation of Debt and Equity 71
Valuation of Debt and Equity Investments and Certain Liabilities - Investments at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 1,656 | $ 1,154 |
Short-term investments | 2,813 | 2,336 |
Long-term investments | 268 | 235 |
Measured at fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,397 | 943 |
Short-term investments | 2,813 | 2,336 |
Long-term investments | 236 | 201 |
Measured at fair value | Available-for-sale securities | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 525 | 346 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Measured at fair value | Available-for-sale securities | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 172 | 107 |
Short-term investments | 698 | 544 |
Long-term investments | 0 | 0 |
Measured at fair value | Available-for-sale securities | U.S. government agency and Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 700 | 490 |
Short-term investments | 2,115 | 1,792 |
Long-term investments | 0 | 0 |
Measured at fair value | Trading securities | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 236 | 201 |
Other measurement basis | Equity-method investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 26 | 25 |
Other measurement basis | Cost-method investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 6 | 9 |
Other measurement basis | Cash on hand | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 259 | 211 |
Short-term investments | 0 | 0 |
Long-term investments | $ 0 | $ 0 |
Valuation of Debt and Equity 72
Valuation of Debt and Equity Investments and Certain Liabilities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Credit losses related to available-for-sale investments | $ 0 | $ 0 | $ 0 |
Proceeds from sales, redemptions and maturities of short-term available-for-sale securities | 4,095,000,000 | 3,390,000,000 | $ 2,892,000,000 |
Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total assets fair value | 4,446,000,000 | 3,480,000,000 | |
Total liabilities fair value | 255,000,000 | 218,000,000 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total assets fair value | 0 | 0 | |
Total liabilities fair value | $ 0 | $ 0 |
Valuation of Debt and Equity 73
Valuation of Debt and Equity Investments and Certain Liabilities - Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 4,446 | $ 3,480 |
Liabilities, fair value | 255 | 218 |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 255 | 218 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,526 | 2,589 |
Liabilities, fair value | 255 | 218 |
Level 1 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 255 | 218 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 920 | 891 |
Liabilities, fair value | 0 | 0 |
Level 2 | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 525 | 346 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 525 | 346 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 870 | 651 |
Corporate obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Corporate obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 870 | 651 |
U.S. government agency and Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,815 | 2,282 |
U.S. government agency and Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,765 | 2,042 |
U.S. government agency and Treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 50 | 240 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 236 | 201 |
Mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 236 | 201 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 0 | $ 0 |
Goodwill and Acquisition-Rela74
Goodwill and Acquisition-Related Intangibles - Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Goodwill | $ 4,362 | $ 4,362 |
Analog | ||
Goodwill [Line Items] | ||
Goodwill | 4,158 | 4,158 |
Embedded Processing | ||
Goodwill [Line Items] | ||
Goodwill | 172 | 172 |
Other | ||
Goodwill [Line Items] | ||
Goodwill | $ 32 | $ 32 |
Goodwill and Acquisition-Rela75
Goodwill and Acquisition-Related Intangibles - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Amortization of acquisition-related intangibles | $ 318,000,000 | $ 319,000,000 | $ 319,000,000 |
Goodwill and Acquisition-Rela76
Goodwill and Acquisition-Related Intangibles - Components of Acquisition Related Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquisition-related intangibles, gross carrying amount | $ 2,940 | $ 2,940 |
Acquisition-related intangibles, accumulated amortization | 1,994 | 1,676 |
Acquisition-related intangibles, net | 946 | 1,264 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2,018 | 318 | |
2,019 | 288 | |
2,020 | 198 | |
2,021 | 142 | |
Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquisition-related intangibles, gross carrying amount | 2,130 | 2,130 |
Acquisition-related intangibles, accumulated amortization | 1,361 | 1,144 |
Acquisition-related intangibles, net | $ 769 | 986 |
Developed technology | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquisition-related intangibles, amortization period | 7 years | |
Developed technology | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquisition-related intangibles, amortization period | 10 years | |
Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquisition-related intangibles, amortization period | 8 years | |
Acquisition-related intangibles, gross carrying amount | $ 810 | 810 |
Acquisition-related intangibles, accumulated amortization | 633 | 532 |
Acquisition-related intangibles, net | $ 177 | $ 278 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Description of defined contribution plans | Both defined contribution plans offer an employer-matching savings option that allows employees to make pre-tax contributions to various investment choices. Employees who elected to continue accruing a benefit in the qualified defined benefit pension plans may also participate in the defined contribution plan, where employer-matching contributions are provided for up to 2 percent of the employee’s annual eligible earnings. Employees who elected not to continue accruing a benefit in the defined benefit pension plans, and employees hired after November 1997 and through December 31, 2003, may participate in the enhanced defined contribution plan. This plan provides for a fixed employer contribution of 2 percent of the employee’s annual eligible earnings, plus an employer-matching contribution of up to 4 percent of the employee’s annual eligible earnings. Employees hired after December 31, 2003, do not receive the fixed employer contribution of 2 percent of the employee’s annual eligible earnings. | ||
Defined benefit pension plan formula, highest consecutive years of compensation (in years) | 5 years | ||
Value of the company shares held by the non-U.S. retirement plans at year-end | $ 27,000,000 | $ 20,000,000 | |
Length of time certain gains and losses are considered when determining the market-related value of assets related to the U.S. Qualified pension and retiree health care plans (in years) | 3 years | ||
Expected contribution to retirement benefit plans in next fiscal year | $ 50,000,000 | ||
Defined benefit plan assets directly invested in TI common stock | 0 | ||
Effect of a one-percentage point change in assumed health care cost trend rates [Abstract] | |||
Liability to participants of the deferred compensation plan | $ 255,000,000 | ||
Deferred compensation plan assets | 236,000,000 | ||
U.S. | Defined benefit plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | 899,000,000 | 926,000,000 | |
Future amortization of net actuarial loss | 17,000,000 | ||
Future amortization of unrecognized prior service credit | 0 | ||
U.S. | Retiree health care plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Future amortization of net actuarial loss | 2,000,000 | ||
Future amortization of unrecognized prior service credit | (3,000,000) | ||
Effect of a one-percentage point change in assumed health care cost trend rates [Abstract] | |||
Effect of a one percentage point increase on accumulated postretirement benefit obligation (in hundredths) | 1,000,000 | ||
Effect of a one percentage point decrease on accumulated postretirement benefit obligation (in hundredths) | 1,000,000 | ||
U.S. | Retiree health care plan | Maximum | |||
Effect of a one-percentage point change in assumed health care cost trend rates [Abstract] | |||
Effect of a one percentage point increase on service and interest cost components (in hundredths) | 1,000,000 | ||
Effect of a one percentage point decrease on service and interest cost components (in hundredths) | 1,000,000 | ||
Non-U.S. | Defined benefit plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | 2,330,000,000 | $ 2,220,000,000 | |
Future amortization of net actuarial loss | 20,000,000 | ||
Future amortization of unrecognized prior service credit | $ (2,000,000) | ||
United States | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of company shares held by the U.S. defined contribution plans at year-end (in shares) | 10,000,000 | 11,000,000 | |
Value of the company shares held by the U.S. defined contribution plans at year-end | $ 1,000,000,000 | $ 796,000,000 | |
Dividends paid on the company shares held by the U.S. defined contribution plans at year-end | 22,000,000 | 20,000,000 | |
Aggregate expense for the U.S. defined contribution plans | $ 61,000,000 | $ 60,000,000 | $ 60,000,000 |
Defined contribution plan, also still accruing defined benefits | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 2.00% | ||
Enhanced defined contribution plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 4.00% | ||
Defined contribution plan, employer fixed contribution (percent) | 2.00% | ||
Defined contribution plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution (percent) | 4.00% |
Postretirement Benefit Plans 78
Postretirement Benefit Plans - Expense Related to Defined Benefit and Retiree Health Care Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. | Defined benefit plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 22 | $ 22 | $ 22 |
Interest cost | 42 | 42 | 43 |
Expected return on plan assets | (41) | (41) | (48) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Recognized net actuarial loss | 14 | 21 | 19 |
Net periodic benefit costs | 37 | 44 | 36 |
Settlement losses | 36 | 21 | 25 |
Total, including other postretirement losses | 73 | 65 | 61 |
U.S. | Retiree health care plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5 | 5 | 5 |
Interest cost | 17 | 20 | 20 |
Expected return on plan assets | (17) | (20) | (22) |
Amortization of prior service cost (credit) | (4) | (3) | 2 |
Recognized net actuarial loss | 3 | 7 | 8 |
Net periodic benefit costs | 4 | 9 | 13 |
Settlement losses | 0 | 0 | 0 |
Total, including other postretirement losses | 4 | 9 | 13 |
Non-U.S. | Defined benefit plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 37 | 34 | 35 |
Interest cost | 44 | 52 | 53 |
Expected return on plan assets | (62) | (68) | (76) |
Amortization of prior service cost (credit) | (2) | (2) | (2) |
Recognized net actuarial loss | 28 | 25 | 24 |
Net periodic benefit costs | 45 | 41 | 34 |
Settlement losses | 2 | 2 | 2 |
Total, including other postretirement losses | $ 47 | $ 43 | $ 36 |
Postretirement Benefit Plans 79
Postretirement Benefit Plans - Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Funded status (FVPA – BO) at end of year | $ 101 | $ (48) | |
U.S. | Defined benefit plan | |||
Change in plan benefit obligation | |||
Benefit obligation at beginning of year: | 1,030 | 1,033 | |
Service cost | 22 | 22 | $ 22 |
Interest cost | 42 | 42 | 43 |
Participant contributions | 0 | 0 | |
Benefits paid | (9) | (9) | |
Medicare subsidy | 0 | 0 | |
Actuarial loss (gain) | 109 | 27 | |
Settlements | (196) | (85) | |
Plan amendments | 0 | 0 | |
Effects of exchange rate changes | 0 | 0 | |
Benefit obligation at end of year (BO) | 998 | 1,030 | 1,033 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year: | 1,034 | 1,019 | |
Actual return on plan assets | 123 | 79 | |
Employer contributions (qualified plans) | 25 | 15 | |
Employer contributions (non-qualified plans) | 18 | 15 | |
Participant contributions | 0 | 0 | |
Benefits paid | (9) | (9) | |
Settlements | (196) | (85) | |
Effects of exchange rate changes | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at end of year (FVPA) | 995 | 1,034 | 1,019 |
Funded status (FVPA – BO) at end of year | (3) | 4 | |
U.S. | Retiree health care plan | |||
Change in plan benefit obligation | |||
Benefit obligation at beginning of year: | 434 | 463 | 434 |
Service cost | 5 | 5 | 5 |
Interest cost | 17 | 20 | 20 |
Participant contributions | 9 | 10 | |
Benefits paid | (39) | (38) | |
Medicare subsidy | 0 | 1 | |
Actuarial loss (gain) | (15) | (27) | |
Settlements | 0 | 0 | |
Plan amendments | 3 | 0 | |
Effects of exchange rate changes | 0 | 0 | |
Benefit obligation at end of year (BO) | 414 | 434 | 463 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year: | 434 | 441 | 434 |
Actual return on plan assets | 44 | 20 | |
Employer contributions (qualified plans) | 1 | 1 | |
Employer contributions (non-qualified plans) | 0 | 0 | |
Participant contributions | 9 | 10 | |
Benefits paid | (39) | (38) | |
Settlements | 0 | 0 | |
Effects of exchange rate changes | 0 | 0 | |
Other | (55) | 0 | |
Fair value of plan assets at end of year (FVPA) | 394 | 434 | 441 |
Funded status (FVPA – BO) at end of year | (20) | 0 | |
Non-U.S. | Defined benefit plan | |||
Change in plan benefit obligation | |||
Benefit obligation at beginning of year: | 2,361 | 2,231 | 2,361 |
Service cost | 37 | 34 | 35 |
Interest cost | 44 | 52 | 53 |
Participant contributions | 6 | 6 | |
Benefits paid | (90) | (77) | |
Medicare subsidy | 0 | 0 | |
Actuarial loss (gain) | (52) | 259 | |
Settlements | (13) | (8) | |
Plan amendments | 0 | 0 | |
Effects of exchange rate changes | 176 | (136) | |
Benefit obligation at end of year (BO) | 2,469 | 2,361 | 2,231 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year: | 2,309 | 2,134 | 2,309 |
Actual return on plan assets | 148 | 227 | |
Employer contributions (qualified plans) | 56 | 160 | |
Employer contributions (non-qualified plans) | 0 | 0 | |
Participant contributions | 6 | 6 | |
Benefits paid | (90) | (77) | |
Settlements | (13) | (8) | |
Effects of exchange rate changes | 177 | (133) | |
Other | 0 | 0 | |
Fair value of plan assets at end of year (FVPA) | 2,593 | 2,309 | $ 2,134 |
Funded status (FVPA – BO) at end of year | $ 124 | $ (52) |
Postretirement Benefit Plans 80
Postretirement Benefit Plans - Amounts Recognized on our Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | $ 208 | $ 96 |
Accrued expenses and other liabilities & Other long-term liabilities | (18) | (15) |
Underfunded retirement plans | (89) | (129) |
Funded status (FVPA – BO) at end of year | 101 | (48) |
U.S. | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 58 | 66 |
Accrued expenses and other liabilities & Other long-term liabilities | (13) | (9) |
Underfunded retirement plans | (48) | (53) |
Funded status (FVPA – BO) at end of year | (3) | 4 |
U.S. | Retiree health care plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 0 | 3 |
Accrued expenses and other liabilities & Other long-term liabilities | 0 | 0 |
Underfunded retirement plans | (20) | (3) |
Funded status (FVPA – BO) at end of year | (20) | 0 |
Non-U.S. | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Overfunded retirement plans | 150 | 27 |
Accrued expenses and other liabilities & Other long-term liabilities | (5) | (6) |
Underfunded retirement plans | (21) | (73) |
Funded status (FVPA – BO) at end of year | $ 124 | $ (52) |
Postretirement Benefit Plans 81
Postretirement Benefit Plans - Schedule of Change in AOCI (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | $ 542 |
Adjustments, net actuarial loss | (118) |
Recognized within Net income, net actuarial loss | (83) |
Tax effect, net actuarial loss | 53 |
Total change to AOCI, net actuarial loss | (148) |
AOCI balance, net actuarial loss portion (net of taxes), period end | 394 |
Defined benefit plan amounts recognized in other comprehensive income prior service credit portion roll forward | |
AOCI balance, net prior service credit (net of taxes), beginning of period | (17) |
Adjustments, prior service credit | 3 |
Recognized within Net income, prior service credit | 6 |
Tax effect, prior service credit | (2) |
Total change to AOCI, prior service credit | 7 |
AOCI balance, net prior service credit (net of taxes), period end | (10) |
U.S. | Defined benefit plan | |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 133 |
Adjustments, net actuarial loss | 28 |
Recognized within Net income, net actuarial loss | (51) |
Tax effect, net actuarial loss | 8 |
Total change to AOCI, net actuarial loss | (15) |
AOCI balance, net actuarial loss portion (net of taxes), period end | 118 |
U.S. | Retiree health care plan | |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 58 |
Adjustments, net actuarial loss | (41) |
Recognized within Net income, net actuarial loss | (3) |
Tax effect, net actuarial loss | 15 |
Total change to AOCI, net actuarial loss | (29) |
AOCI balance, net actuarial loss portion (net of taxes), period end | 29 |
Defined benefit plan amounts recognized in other comprehensive income prior service credit portion roll forward | |
AOCI balance, net prior service credit (net of taxes), beginning of period | (11) |
Adjustments, prior service credit | 3 |
Recognized within Net income, prior service credit | 4 |
Tax effect, prior service credit | (2) |
Total change to AOCI, prior service credit | 5 |
AOCI balance, net prior service credit (net of taxes), period end | (6) |
Non-U.S. | Defined benefit plan | |
Defined benefit plan amounts recognized in other comprehensive income net actuarial loss portion roll forward | |
AOCI balance, net actuarial loss portion (net of taxes), beginning of period | 351 |
Adjustments, net actuarial loss | (105) |
Recognized within Net income, net actuarial loss | (29) |
Tax effect, net actuarial loss | 30 |
Total change to AOCI, net actuarial loss | (104) |
AOCI balance, net actuarial loss portion (net of taxes), period end | 247 |
Defined benefit plan amounts recognized in other comprehensive income prior service credit portion roll forward | |
AOCI balance, net prior service credit (net of taxes), beginning of period | (6) |
Adjustments, prior service credit | 0 |
Recognized within Net income, prior service credit | 2 |
Tax effect, prior service credit | 0 |
Total change to AOCI, prior service credit | 2 |
AOCI balance, net prior service credit (net of taxes), period end | $ (4) |
Postretirement Benefit Plans 82
Postretirement Benefit Plans - Plan Assets by Level Three Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | Defined benefit plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $ 995 | $ 1,034 | $ 1,019 | ||
U.S. | Defined benefit plan | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 995 | 1,034 | ||
U.S. | Defined benefit plan | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 654 | 685 | |||
U.S. | Defined benefit plan | Fixed income securities and cash equivalents | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 654 | 685 | ||
U.S. | Defined benefit plan | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 341 | 349 | |||
U.S. | Defined benefit plan | Equity securities | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 341 | 349 | ||
U.S. | Defined benefit plan | Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 1 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 1 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 2 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 2 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 3 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Defined benefit plan | Level 3 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Retiree health care plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 394 | 434 | 441 | $ 434 | |
U.S. | Retiree health care plan | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 260 | 251 | ||
U.S. | Retiree health care plan | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 245 | 227 | |||
U.S. | Retiree health care plan | Fixed income securities and cash equivalents | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 111 | 44 | ||
U.S. | Retiree health care plan | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 149 | 207 | |||
U.S. | Retiree health care plan | Equity securities | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 149 | 207 | ||
U.S. | Retiree health care plan | Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 132 | 180 | |||
U.S. | Retiree health care plan | Level 1 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 132 | 180 | |||
U.S. | Retiree health care plan | Level 1 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Retiree health care plan | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2 | 3 | |||
U.S. | Retiree health care plan | Level 2 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2 | 3 | |||
U.S. | Retiree health care plan | Level 2 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Retiree health care plan | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Retiree health care plan | Level 3 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. | Retiree health care plan | Level 3 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. | Defined benefit plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2,593 | 2,309 | $ 2,134 | $ 2,309 | |
Non-U.S. | Defined benefit plan | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 2,363 | 2,137 | ||
Non-U.S. | Defined benefit plan | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,845 | 1,654 | |||
Non-U.S. | Defined benefit plan | Fixed income securities and cash equivalents | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 1,646 | 1,508 | ||
Non-U.S. | Defined benefit plan | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 747 | 652 | |||
Non-U.S. | Defined benefit plan | Equity securities | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 717 | 629 | ||
Non-U.S. | Defined benefit plan | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1 | 3 | |||
Non-U.S. | Defined benefit plan | Other | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 0 | 0 | ||
Non-U.S. | Defined benefit plan | Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 23 | 24 | |||
Non-U.S. | Defined benefit plan | Level 1 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 16 | 19 | |||
Non-U.S. | Defined benefit plan | Level 1 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7 | 5 | |||
Non-U.S. | Defined benefit plan | Level 1 | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. | Defined benefit plan | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 206 | 145 | |||
Non-U.S. | Defined benefit plan | Level 2 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 183 | 127 | |||
Non-U.S. | Defined benefit plan | Level 2 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 23 | 18 | |||
Non-U.S. | Defined benefit plan | Level 2 | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. | Defined benefit plan | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1 | 3 | |||
Non-U.S. | Defined benefit plan | Level 3 | Fixed income securities and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. | Defined benefit plan | Level 3 | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. | Defined benefit plan | Level 3 | Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $ 1 | $ 3 | |||
[1] | Consists of bond index and equity index funds, measured at net asset value per share. |
Postretirement Benefit Plans 83
Postretirement Benefit Plans - Weighted Average Assumptions Used (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. | Defined benefit plan | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate (in percent) | 3.75% | 4.29% |
Long-term pay progression (in percent) | 3.30% | 3.30% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate (in percent) | 4.21% | 4.40% |
Long term rate of return on plan assets (in percent) | 4.30% | 4.60% |
Long-term pay progression (in percent) | 3.30% | 3.30% |
U.S. | Retiree health care plan | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate (in percent) | 3.63% | 4.08% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate (in percent) | 4.08% | 4.40% |
Long term rate of return on plan assets (in percent) | 4.10% | 4.40% |
Non-U.S. | Defined benefit plan | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate (in percent) | 1.84% | 1.76% |
Long-term pay progression (in percent) | 2.96% | 3.11% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate (in percent) | 1.76% | 2.41% |
Long term rate of return on plan assets (in percent) | 2.60% | 3.18% |
Long-term pay progression (in percent) | 3.11% | 3.21% |
Postretirement Benefit Plans 84
Postretirement Benefit Plans - Weighted Average Allocations (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. | Fixed income securities and cash equivalents | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 65.00% | |
Actual plan asset allocation (in percent) | 66.00% | 66.00% |
U.S. | Fixed income securities and cash equivalents | Retiree health care plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 62.00% | 52.00% |
U.S. | Fixed income securities and cash equivalents | Retiree health care plan | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 55.00% | |
U.S. | Fixed income securities and cash equivalents | Retiree health care plan | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 65.00% | |
U.S. | Equity securities | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 35.00% | |
Actual plan asset allocation (in percent) | 34.00% | 34.00% |
U.S. | Equity securities | Retiree health care plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 38.00% | 48.00% |
U.S. | Equity securities | Retiree health care plan | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 35.00% | |
U.S. | Equity securities | Retiree health care plan | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 45.00% | |
Non-U.S. | Fixed income securities and cash equivalents | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 71.00% | 72.00% |
Non-U.S. | Fixed income securities and cash equivalents | Defined benefit plan | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 60.00% | |
Non-U.S. | Fixed income securities and cash equivalents | Defined benefit plan | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 100.00% | |
Non-U.S. | Equity securities | Defined benefit plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation (in percent) | 29.00% | 28.00% |
Non-U.S. | Equity securities | Defined benefit plan | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 0.00% | |
Non-U.S. | Equity securities | Defined benefit plan | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation (in percent) | 40.00% |
Postretirement Benefit Plans 85
Postretirement Benefit Plans - Assumed Future Benefits Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
U.S. | Defined benefit plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 payment | $ 140 |
2019 payment | 111 |
2020 payment | 83 |
2021 payment | 90 |
2022 payment | 87 |
2023 - 2027 payment | 410 |
U.S. | Retiree health care plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 payment | 30 |
2019 payment | 31 |
2020 payment | 31 |
2021 payment | 30 |
2022 payment | 30 |
2023 - 2027 payment | 139 |
Non-U.S. | Defined benefit plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 payment | 86 |
2019 payment | 87 |
2020 payment | 89 |
2021 payment | 90 |
2022 payment | 94 |
2023 - 2027 payment | $ 495 |
Postretirement Benefit Plans 86
Postretirement Benefit Plans - Health Care Cost Trend Rates (Details) - U.S. - Retiree health care plan | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed health care cost trend rate for next year (in percent) | 7.50% | 6.75% |
Ultimate trend rate (in percent) | 5.00% | 5.00% |
Year in which ultimate trend rate is reached | 2,028 | 2,024 |
Debt and Lines of Credit - Addi
Debt and Lines of Credit - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2017 | Jun. 30, 2017 | May 31, 2017 | Mar. 31, 2017 | May 31, 2016 | Aug. 31, 2015 | May 31, 2015 | Apr. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||||||||
Commercial paper | $ 0 | ||||||||||
Retirement of long-term debt | $ 375,000,000 | $ 250,000,000 | |||||||||
Long-term debt, gross | 4,100,000,000 | $ 3,625,000,000 | |||||||||
Proceeds from issuance of long-term debt | 1,099,000,000 | 499,000,000 | $ 498,000,000 | ||||||||
Interest and debt expense | 78,000,000 | 80,000,000 | 90,000,000 | ||||||||
Interest paid | 75,000,000 | 88,000,000 | $ 99,000,000 | ||||||||
Notes payable | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Retirement of long-term debt | $ 1,000,000,000 | $ 750,000,000 | $ 250,000,000 | ||||||||
Long-term debt, gross | $ 600,000,000 | ||||||||||
Payments of debt issuance costs | 3,000,000 | ||||||||||
Proceeds from issuance of long-term debt | 605,000,000 | ||||||||||
Notes due 2021 at 2.75% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 300,000,000 | $ 550,000,000 | $ 250,000,000 | ||||||||
Long-term debt stated interest rate (in percentage) | 2.75% | 2.75% | 2.75% | ||||||||
Notes due 2024 at 2.625% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 300,000,000 | $ 300,000,000 | $ 0 | ||||||||
Long-term debt stated interest rate (in percentage) | 2.625% | 2.625% | 2.625% | ||||||||
Notes due 2027 at 2.90% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 500,000,000 | $ 500,000,000 | $ 0 | ||||||||
Long-term debt stated interest rate (in percentage) | 2.90% | 2.90% | |||||||||
Payments of debt issuance costs | 3,000,000 | ||||||||||
Proceeds from issuance of long-term debt | $ 494,000,000 | ||||||||||
Notes due 2022 at 1.85% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||
Long-term debt stated interest rate (in percentage) | 1.85% | 1.85% | |||||||||
Payments of debt issuance costs | 3,000,000 | ||||||||||
Proceeds from issuance of long-term debt | $ 499,000,000 | ||||||||||
Notes due 2020 at 1.75% | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt, gross | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||
Long-term debt stated interest rate (in percentage) | 1.75% | 1.75% | |||||||||
Payments of debt issuance costs | 3,000,000 | ||||||||||
Proceeds from issuance of long-term debt | $ 498,000,000 | ||||||||||
Revolving credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity until March 2022 | $ 2,000,000,000 |
Debt and Lines of Credit - Sche
Debt and Lines of Credit - Schedule of Long-term Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Nov. 30, 2017 | May 31, 2017 | Dec. 31, 2016 | May 31, 2016 | May 31, 2015 |
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 4,100 | $ 3,625 | ||||
Net unamortized discounts, premiums and debt issuance costs | (23) | (16) | ||||
Total debt, including net unamortized discounts, premiums and debt issuance costs | 4,077 | 3,609 | ||||
Current portion of long-term debt | (500) | (631) | ||||
Long-term debt | 3,577 | 2,978 | ||||
Notes due 2017 at 0.875% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 0 | 250 | ||||
Notes due 2018 at 1.00% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 500 | 500 | ||||
Notes due 2019 at 1.65% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 750 | 750 | ||||
Notes due 2020 at 1.75% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 500 | 500 | $ 500 | |||
Notes due 2021 at 2.75% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 550 | $ 300 | 250 | |||
Notes due 2022 at 1.85% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 500 | 500 | $ 500 | |||
Notes due 2023 at 2.25% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 500 | 500 | ||||
Notes due 2024 at 2.625% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 300 | $ 300 | 0 | |||
Notes due 2027 at 2.90% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | 500 | $ 500 | 0 | |||
National Semiconductor | Notes due 2017 at 6.60% (assumed with National acquisition) | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 0 | $ 375 |
Debt and Lines of Credit - Sc89
Debt and Lines of Credit - Schedule of Long-term Debt Outstanding (Parenthetical) (Details) | Dec. 31, 2017 | May 31, 2017 | Dec. 31, 2016 |
Notes due 2017 at 0.875% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 0.875% | 0.875% | |
Notes due 2018 at 1.00% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 1.00% | 1.00% | |
Notes due 2019 at 1.65% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 1.65% | 1.65% | |
Notes due 2020 at 1.75% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 1.75% | 1.75% | |
Notes due 2021 at 2.75% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 2.75% | 2.75% | 2.75% |
Notes due 2022 at 1.85% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 1.85% | 1.85% | |
Notes due 2023 at 2.25% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 2.25% | 2.25% | |
Notes due 2024 at 2.625% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 2.625% | 2.625% | 2.625% |
Notes due 2027 at 2.90% | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 2.90% | 2.90% | |
National Semiconductor | Notes due 2017 at 6.60% (assumed with National acquisition) | |||
Debt Instrument [Line Items] | |||
Long-term debt stated interest rate (in percentage) | 6.60% | 6.60% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental and lease expense incurred | $ 81 | $ 86 | $ 98 |
Standard product warranty description | obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. |
Commitments and Contingencies91
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2017USD ($) |
Operating Leases | |
2,018 | $ 68 |
2,019 | 45 |
2,020 | 49 |
2,021 | 29 |
2,022 | 24 |
Thereafter | 56 |
Purchase Commitments | |
2,018 | 391 |
2,019 | 367 |
2,020 | 234 |
2,021 | 37 |
2,022 | 30 |
Thereafter | $ 35 |
Supplemental financial inform92
Supplemental financial information - Other income (expense), net (OI&E) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Supplemental Financial Information [Abstract] | ||||
Royalty income | [1] | $ 119 | $ 0 | $ 0 |
Income from settlements related to intellectual property infringement | 0 | 188 | 0 | |
Pension and other retiree benefit costs | [2] | (61) | (56) | (48) |
Other | [3] | 17 | 23 | 32 |
Total | $ 75 | $ 155 | $ (16) | |
[1] | As of January 1, 2017, royalties are recorded in OI&E. See Note 1 for additional information. | |||
[2] | Reflects the adoption of ASU 2017-07. See Note 2 for additional information. | |||
[3] | Other includes interest and lease income, investment and currency gains and losses, and tax interest income and expense. |
Supplemental financial inform93
Supplemental financial information - Prepaid expenses and other current assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Financial Information [Abstract] | ||
Prepaid taxes on intercompany inventory profits, net | $ 768 | $ 566 |
Other | 262 | 344 |
Total | $ 1,030 | $ 910 |
Supplemental financial inform94
Supplemental financial information - Property, plant and equipment at cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 4,789 | $ 4,923 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | 127 | 127 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 2,467 | 2,753 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 5 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 40 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost | $ 2,195 | $ 2,043 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 2 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment at cost, depreciable lives | 10 years |
Supplemental financial inform95
Supplemental financial information - Other long-term liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Financial Information [Abstract] | ||
Long-term portion of tax on indefinitely reinvested earnings | $ 635 | $ 0 |
Other | 668 | 554 |
Total | $ 1,303 | $ 554 |
Supplemental financial inform96
Supplemental financial information - Accumulated other comprehensive income (loss), net of taxes (AOCI) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Financial Information [Abstract] | ||
Net actuarial loss | $ (394) | $ (542) |
Prior service credit | 10 | 17 |
Cash flow hedge derivative instruments | 0 | (1) |
Total | $ (384) | $ (526) |
Supplemental financial inform97
Supplemental financial information - Amounts Reclassified out of AOCI (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net actuarial losses of defined benefit plans | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from other comprehensive income (loss), before tax | [1] | $ 83 | $ 76 | $ 78 |
Tax Effect | (27) | (25) | (25) | |
Recognized within Net income, net of taxes | 56 | 51 | 53 | |
Prior service credit of defined benefit plans | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from other comprehensive income (loss), before tax | [1] | (6) | (5) | 0 |
Tax Effect | 1 | 2 | 0 | |
Recognized within Net income, net of taxes | (5) | (3) | 0 | |
Derivative instruments | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from other comprehensive income (loss), before tax | 1 | 1 | 2 | |
Tax Effect | 0 | 0 | (1) | |
Recognized within Net income, net of taxes | $ 1 | $ 1 | $ 1 | |
[1] | Detailed in Note 10. |
Quarterly financial data (una98
Quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 3,750 | $ 4,116 | $ 3,693 | $ 3,402 | $ 3,414 | $ 3,675 | $ 3,273 | $ 3,008 | $ 14,961 | $ 13,370 | $ 13,000 |
Gross profit | 2,440 | 2,656 | 2,374 | 2,144 | 2,137 | 2,284 | 2,007 | 1,829 | 9,614 | 8,257 | 7,575 |
Acquisition charges | 79 | 80 | 79 | 80 | 80 | 80 | 79 | 80 | 318 | 319 | 329 |
Restructuring charges/other | 3 | 1 | 3 | 4 | (20) | 1 | 2 | 2 | 11 | (15) | (71) |
Operating profit | 1,563 | 1,788 | 1,480 | 1,252 | 1,332 | 1,408 | 1,131 | 984 | 6,083 | 4,855 | 4,322 |
Net income | $ 344 | $ 1,285 | $ 1,056 | $ 997 | $ 1,047 | $ 1,018 | $ 819 | $ 711 | $ 3,682 | $ 3,595 | $ 2,986 |
Basic earnings per common share | $ 0.35 | $ 1.29 | $ 1.05 | $ 0.99 | $ 1.04 | $ 1 | $ 0.81 | $ 0.70 | $ 3.68 | $ 3.54 | $ 2.86 |
Diluted earnings per common share | $ 0.34 | $ 1.26 | $ 1.03 | $ 0.97 | $ 1.02 | $ 0.98 | $ 0.79 | $ 0.69 | $ 3.61 | $ 3.48 | $ 2.82 |