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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2016 shares
Document And Entity Information [Abstract]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	STM
Entity Registrant Name	STMICROELECTRONICS NV
Entity Central Index Key	0000932787
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	911,030,420

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Net sales	$ 6,944	$ 6,866	$ 7,335
Other revenues	29	31	69
Net revenues	6,973	6,897	7,404
Cost of sales	(4,518)	(4,565)	(4,906)
Gross profit	2,455	2,332	2,498
Selling, general and administrative	(911)	(897)	(927)
Research and development	(1,336)	(1,425)	(1,520)
Other income and expenses, net	99	164	207
Impairment, restructuring charges and other related closure costs	(93)	(65)	(90)
Operating income	214	109	168
Interest expense, net	(20)	(22)	(18)
Income (loss) on equity-method investments	7	2	(43)
Loss on financial instruments, net			(1)
Income (loss) before income taxes and noncontrolling interest	201	89	106
Income tax benefit (expense)	(31)	21	23
Net income	170	110	129
Net income attributable to noncontrolling interest	(5)	(6)	(1)
Net income attributable to parent company	$ 165	$ 104	$ 128
Earnings per share (Basic) attributable to parent company stockholders	$ 0.19	$ 0.12	$ 0.14
Earnings per share (Diluted) attributable to parent company stockholders	$ 0.19	$ 0.12	$ 0.14

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 170	$ 110	$ 129
Other comprehensive income (loss), net of tax:
Currency translation adjustments arising during the period	(57)	(202)	(271)
Less: reclassification adjustment for gains on disposal of equity investment		(10)
Foreign currency translation adjustments	(57)	(212)	(271)
Net unrealized gains arising during the period			1
Net unrealized gains (losses) on securities			1
Net unrealized (losses) gains arising during the period	(33)	(117)	(111)
Less: reclassification adjustment for (income) losses included in net income	9	170	2
Net unrealized gains (losses) on derivatives	(24)	53	(109)
Prior service cost arising during the period		2
Net gains (losses) arising during the period	(8)	3	(50)
Less: amortization of prior service cost included in net periodic pension cost	1	1	1
Defined benefit pension plans	(7)	6	(49)
Other comprehensive (loss) income, net of tax	(88)	(153)	(428)
Comprehensive income (loss)	82	(43)	(299)
Less: comprehensive income (loss) attributable to noncontrolling interest	6	6	2
Comprehensive income (loss) attributable to the company's stockholders	$ 76	$ (49)	$ (301)

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 1,629	$ 1,771
Restricted cash		4
Marketable securities	335	335
Trade accounts receivable, net	939	820
Inventories	1,173	1,251
Deferred tax assets	95	91
Assets held for sale		1
Other current assets	311	407
Total current assets	4,482	4,680
Goodwill	116	76
Other intangible assets, net	195	166
Property, plant and equipment, net	2,287	2,321
Non-current deferred tax assets	437	436
Long-term investments	57	57
Other non-current assets	434	459
Total non-current assets	3,526	3,515
Total assets	8,008	8,195
Current liabilities:
Short-term debt	117	191
Trade accounts payable	620	525
Other payables and accrued liabilities	750	703
Dividends payable to stockholders	59	97
Deferred tax liabilities		2
Accrued income tax	42	42
Total current liabilities	1,588	1,560
Long-term debt	1,334	1,421
Post-employment benefit obligations	347	351
Long-term deferred tax liabilities	9	12
Other long-term liabilities	134	158
Total non-current liabilities	1,824	1,942
Total liabilities	3,412	3,502
Commitment and contingencies
Parent company stockholders' equity
Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 911,030,420 shares issued, 883,410,506 shares outstanding)	1,157	1,157
Capital surplus	2,818	2,779
Retained earnings	431	525
Accumulated other comprehensive income	371	460
Treasury stock	(242)	(289)
Total parent company stockholders' equity	4,535	4,632
Noncontrolling interest	61	61
Total equity	4,596	4,693
Total liabilities and equity	$ 8,008	$ 8,195

Consolidated Balance Sheets (Parenthetical) - € / shares	Dec. 31, 2016	Dec. 31, 2015	Jan. 22, 2007
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	540,000,000	540,000,000	540,000,000
Preferred stock, shares issued	0	0
Common stock, nominal value	€ 1.04	€ 1.04
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, shares issued	911,030,420	910,967,920
Common stock, shares outstanding	883,410,506	878,537,339

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Capital Surplus [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2013	$ 5,717	$ 1,156	$ 2,581	$ (212)	$ 1,076	$ 1,042	$ 74
Capital increase	1	1
Repurchase of common stock	(156)			(156)
Issuance of senior unsecured convertible bonds	121		121
Stock-based compensation expense	39		39	34	(34)
Joint ventures and other subsidiaries deconsolidation	(12)						(12)
Comprehensive income (loss):
Net income	129				128		1
Other comprehensive income (loss), net of tax	(428)					(429)	1
Comprehensive income (loss)	(299)
Dividends to noncontrolling interest	(3)						(3)
Dividends	(353)				(353)
Ending Balance at Dec. 31, 2014	5,055	1,157	2,741	(334)	817	613	61
Issuance of senior unsecured convertible bonds	0
Stock-based compensation expense	38		38	45	(45)
Comprehensive income (loss):
Net income	110				104		6
Other comprehensive income (loss), net of tax	(153)					(153)
Comprehensive income (loss)	(43)
Dividends to noncontrolling interest	(6)						(6)
Dividends	(351)				(351)
Ending Balance at Dec. 31, 2015	4,693	1,157	2,779	(289)	525	460	61
Issuance of senior unsecured convertible bonds	121
Stock-based compensation expense	39		39	47	(47)
Comprehensive income (loss):
Net income	170				165		5
Other comprehensive income (loss), net of tax	(88)					(89)	1
Comprehensive income (loss)	82
Dividends to noncontrolling interest	(6)						(6)
Dividends	(212)				(212)
Ending Balance at Dec. 31, 2016	$ 4,596	$ 1,157	$ 2,818	$ (242)	$ 431	$ 371	$ 61

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Common Stock [Member]
Dividends, per share	$ 0.24	$ 0.40	$ 0.40

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 170	$ 110	$ 129
Items to reconcile net income and cash flows from operating activities:
Depreciation and amortization	696	736	811
Interest and amortization of issuance costs on convertible bonds	22	21	10
Loss on financial instruments, net			1
Gain on sale of businesses			(22)
Non-cash stock-based compensation	38	38	36
Other non-cash items	(85)	(108)	(78)
Deferred income tax	(34)	(93)	(143)
(Income) loss on equity-method investments	(7)	(2)	43
Impairment, restructuring charges and other related closure costs, net of cash payments	34	20	4
Changes in assets and liabilities:
Trade receivables, net	(121)	81	119
Inventories	63	(39)
Trade payables	68	(46)	(70)
Other assets and liabilities, net	195	124	(125)
Net cash from operating activities	1,039	842	715
Cash flows from investing activities:
Payment for purchase of tangible assets	(611)	(529)	(505)
Proceeds from sale of tangible assets	4	62	9
Payment for purchase of marketable securities	0	0	(333)
Proceeds from sale of marketable securities	0	0	58
Net cash variation for joint ventures deconsolidation		(1)	9
Partial asset distribution from joint ventures in liquidation			15
Payment for purchase of intangible assets	(42)	(36)	(58)
Payment for purchase of financial assets			(9)
Payment for disposal of equity investment		(13)
Proceeds from sale of financial assets		1	1
Payment for business acquisitions, net of cash and cash equivalents acquired	(78)
Proceeds received in sale of businesses			29
Net cash used in investing activities	(727)	(516)	(784)
Cash flows from financing activities:
Proceeds from long-term debt	13		3
Net proceeds from issuance of senior unsecured convertible bonds			994
Repayment of long-term debt	(191)	(200)	(223)
Capital increase			1
Repurchase of common stock			(156)
Dividends paid to stockholders	(251)	(350)	(354)
Dividends paid to noncontrolling interests	(6)	(6)	(3)
Other financing activities	(1)
Net cash from (used in) financing activities	(436)	(556)	262
Effect of changes in exchange rates	(18)	(16)	(12)
Net cash increase (decrease)	(142)	(246)	181
Cash and cash equivalents at beginning of the period	1,771	2,017	1,836
Cash and cash equivalents at end of the period	1,629	1,771	2,017
Supplemental cash information:
Interest paid	13	15	11
Income tax paid	$ 42	$ 41	$ 30

The Company

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company

THE COMPANY

STMicroelectronics N.V. (the “Company”) is registered in The Netherlands with its corporate legal seat in Amsterdam, the Netherlands, and its corporate headquarters located in Geneva, Switzerland.

The Company is a global independent semiconductor company that designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, application-specific integrated circuits (“ASICs”), full custom devices and semi-custom devices and application-specific standard products (“ASSPs”) for analog, digital and mixed-signal applications. In addition, the Company participates in the manufacturing value chain of smartcard products, which includes the production and sale of both silicon chips and smartcards.

Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Accounting Policies

ACCOUNTING POLICIES

The accounting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). All balances and values in the current and prior periods are in millions of U.S. dollars, except share and per-share amounts. Under Article 35 of the Company’s Articles of Association, the financial year extends from January 1 to December 31, which is the period-end of each fiscal year.

2.1 – Principles of consolidation

The Company’s consolidated financial statements include the assets, liabilities, results of operations and cash flows of its majority-owned subsidiaries. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Intercompany balances and transactions have been eliminated in consolidation.

The Company assesses each investment in equity securities to determine whether the investee is a Variable Interest Entity (“VIE”). The Company consolidates the VIEs for which the Company is determined to be the primary beneficiary. The primary beneficiary of a VIE is the party that: (i) has the power to direct the most significant activities of the VIE and (ii) is obligated to absorb losses or has the rights to receive returns that would be considered significant to the VIE. Assets, liabilities, and the noncontrolling interest of newly consolidated VIEs are initially measured at fair value in the same manner as if the consolidation resulted from a business combination.

When the Company owns some, but not all, of the voting stock of a consolidated entity, the shares held by third parties represent a noncontrolling interest. The consolidated financial statements are prepared based on the total amount of assets and liabilities and income and expenses of the consolidated subsidiaries. However, the portion of these items that does not belong to the Company is reported on the line “Noncontrolling interest” in the consolidated financial statements.

2.2 – Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. The primary areas that require significant estimates and judgments by management include, but are not limited to:

•

sales returns and allowances,

•

inventory obsolescence reserves and normal manufacturing capacity thresholds to determine costs capitalized in inventory,

•

recognition and measurement of loss contingencies,

•

valuation at fair value of assets acquired or sold, including intangibles, goodwill, investments and tangible assets,

•

annual and trigger-based impairment review of goodwill and intangible assets, as well as the assessment, in each reporting period, of events, which could trigger impairment testing on long-lived assets,

•

estimated value of the consideration to be received and used as fair value for asset groups classified as assets held for sale and the assessment of probability of realizing the sale,

•

assessment of other-than-temporary impairment charges on financial assets, including equity-method investments,

•

recognition and measurement of restructuring charges and other related exit costs,

•

assumptions used in assessing the number of awards expected to vest on stock-based compensation plans,

•

assumptions used in calculating pension obligations and other long-term employee benefits, and

•

determination of the amount of taxes expected to be paid and tax benefit expected to be received, including deferred income tax assets, valuation allowance and provisions for uncertain tax positions and claims.

The Company bases the estimates and assumptions on historical experience and on various other factors such as market trends, market information used by market participants and the latest available business plans that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. While the Company regularly evaluates its estimates and assumptions, the actual results experienced by the Company could differ materially and adversely from those estimates.

2.3 – Foreign currency

The U.S. dollar is the reporting currency of the Company. The U.S. dollar is the currency of the primary economic environment in which the Company operates since the worldwide semiconductor industry uses the U.S. dollar as a currency of reference for actual pricing in the market. Furthermore, the majority of the Company’s transactions are denominated in U.S. dollars, and revenues from external sales in U.S. dollars largely exceed revenues in any other currency. However, certain significant costs are largely incurred in the countries of the Euro zone and other non-U.S. dollar currency areas.

The functional currency of each subsidiary of the Company is either the local currency or the U.S. dollar, depending on the basis of the economic environment in which each subsidiary operates. Foreign currency transactions, including operations in local currency when the U.S. dollar is the functional currency, are measured into the functional currency using the prevailing exchange rate. Foreign exchange gains and losses resulting from the re-measurement at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statements of income on the line “Other income and expenses, net”.

For consolidation purposes, the results and financial position of the subsidiaries whose functional currency is different from the U.S. dollar are translated into the reporting currency as follows:

(a)

assets and liabilities for each consolidated balance sheet presented are translated at the closing exchange rate as of the balance sheet date;

(b)

income and expenses for each consolidated statement of income presented are translated at the average monthly exchange rate;

(c)

the resulting exchange differences are reported as Currency Translation Adjustments (“CTA”), a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income.

2.4 – Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with external financial institutions and other short-term highly liquid investments with original maturities to the Company of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Bank overdrafts are not netted against cash and cash equivalents and are shown as part of current liabilities on the consolidated balance sheets.

2.5 – Trade accounts receivable

Trade accounts receivable are amounts due from customers for goods sold and services rendered to third parties in the ordinary course of business. They are reported net of allowances for doubtful accounts. The Company maintains an allowance for doubtful accounts for potential estimated losses resulting from its customers’ inability to make required payments. The Company bases its estimates on historical collection trends and records an allowance accordingly. Additionally, the Company evaluates its customers’ financial condition periodically and records an allowance for any specific account it considers as doubtful. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the charge is recognized on the line “Selling, general and administrative” in the consolidated statements of income. Subsequent recoveries, if any, of amounts previously provided for are credited against the same line in the consolidated statements of income. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivable.

In the event of transfers of receivables such as factoring, the Company derecognizes the receivables only to the extent that the Company has surrendered control over the receivables in exchange for a consideration other than beneficial interest in the transferred receivables.

2.6 – Inventories

Inventories are stated at the lower of cost or market value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the unused capacity are not included in the valuation of inventories but charged directly to cost of sales. Market value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses and cost of completion.

The Company performs, on a continuous basis, inventory write-offs of products, which have the characteristics of slow-moving, old production date and technical obsolescence. Indeed, the Company evaluates its product inventory to identify obsolete or slow-selling items and records a specific reserve if the Company estimates the inventory will eventually become obsolete. Reserve for obsolescence is estimated for excess uncommitted inventory based on the previous quarter sales, order backlog and production plans.

2.7 – Income taxes

Income tax for the period comprises current and deferred income tax. Current income tax represents the income tax expected to be paid or the tax benefit expected to be received related to the current year taxable profit and loss in each tax jurisdiction. Deferred income tax is recognized, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit and loss. Moreover, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is determined using tax rates and laws that are enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect on deferred tax assets and liabilities from changes in tax laws and tax rates is recognized on the line “Income tax benefit (expense)” in the consolidated statements of income in the period in which the law is enacted. Deferred income tax assets are recognized in full, but the Company assesses whether future taxable profit will be available against which temporary differences can be utilized. A valuation allowance is provided for deferred tax assets when management considers it is more likely than not that they will not be realized.

The Company recognizes a deferred tax liability on undistributed earnings of subsidiaries when there is a presumption that the earnings will be remitted to the parent. A deferred tax asset is recognized on compensation for the grant of stock awards to the extent that such charge constitutes a temporary difference in the subsidiaries’ local tax jurisdictions. Changes in the stock price do not impact the deferred tax asset and do not result in any adjustments prior to vesting. When the actual tax deduction is determined, generally upon vesting, it is compared to the deferred tax asset as recognized over the vesting period. When a windfall tax benefit is determined (as the excess tax benefit of the actual tax deduction over the deferred tax asset) the excess tax benefit is recorded in equity on the line “Capital surplus” on the consolidated statements of equity. In case of shortfall, only the actual tax benefit is to be recognized in the consolidated financial statements. The Company writes off the deferred tax asset at the level of the actual tax deduction by charging first capital surplus to the extent of the pool of windfall benefits available from prior years, and then in the consolidated statements of income on the line “Income tax benefit (expense)”. When the settlement of an award results in a net operating loss (“NOL”) carryforward, or increase of existing NOLs, the excess tax benefit and the corresponding credit to capital surplus is not recorded until the deduction reduces income tax payable.

At each reporting date, the Company assesses all material open income tax positions in all tax jurisdictions to determine any uncertain tax positions. The Company uses a two-step process for the evaluation of uncertain tax positions. The first step consists in determining whether a benefit may be recognized; the assessment is based on a more-likely-than-not recognition threshold. If the sustainability is lower than 50%, a full provision should be accounted for. In case of a sustainability threshold in step one higher than 50%, the Company must perform a second step in order to measure the amount of recognizable tax benefit, net of any liability for tax uncertainties. The measurement methodology in step two is based on a “cumulative probability” approach, resulting in the recognition of the largest amount that is greater than 50% likely of being realized upon settlement with the taxing authority. The unrecognized tax benefit is recorded as a reduction of a deferred tax asset to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of the tax position. The Company accrues for interest and penalties on uncertain tax liabilities reported on the consolidated balance sheets. Interests and penalties are classified as components of income tax expense in the consolidated statements of income.

2.8 – Assets held for sale

Asset groups are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. The asset groups are classified as assets held for sale when the following conditions have been met: management has approved the plan to sell; assets are available for immediate sale; assets are actively being marketed; sale is probable within one year; price is reasonable in the market and it is unlikely that there will be significant changes in the assets to be sold or a withdrawal to the plan to sell. Asset groups classified as held for sale are reported as current assets in the consolidated balance sheets at the lower of their carrying amount and fair value less costs to sell. Long-lived assets classified as held for sale are no longer depreciated. When the held-for-sale accounting treatment requires an impairment charge for the difference between the carrying amount and fair value, such impairment is reflected on the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs”.

2.9 – Business combinations and goodwill

The purchase accounting method is applied to all business combinations. The identifiable assets acquired, equity instruments issued, and liabilities assumed are measured at fair value on the acquisition date. Any contingent purchase price and acquired contingencies are recorded at fair value on the acquisition date and at each reporting date. Acquisition-related transaction costs and restructuring costs relating to the acquired business are expensed as incurred. Acquired in-process research and development (“IPR&D”) is capitalized and recorded as an intangible asset on the acquisition date, subject to impairment testing until the research or development is completed or abandoned. The excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed is recorded as goodwill. In case of a bargain purchase, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed; the noncontrolling interest in the acquiree, if any; the Company’s previously held equity interest in the acquiree, if any; and the consideration transferred. If after this review, a bargain purchase is still indicated, it is recognized in earnings attributed to the Company. The purchase of additional interests in a partially owned subsidiary is treated as an equity transaction as well as all transactions concerning the sale of subsidiary stock or the issuance of stock by the partially owned subsidiary as long as there is no change in control of the subsidiary. If as a consequence of selling subsidiary shares, the Company no longer controls the subsidiary, the Company recognizes a gain or loss in earnings.

Goodwill represents the excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized but is tested annually for impairment, or more frequently if indicators of impairment exist. Goodwill subject to potential impairment is tested at a reporting unit level. The impairment test determines whether the fair value of each reporting unit for which goodwill is allocated is lower than the total carrying amount of relevant net assets allocated to such reporting unit, including its allocated goodwill. If lower, the implied fair value of the reporting unit goodwill is then compared to the carrying value of the goodwill and an impairment charge is recognized for any excess. Significant management judgments and estimates are used in forecasting the future discounted cash flows associated with the reporting unit, including: the applicable industry’s sales volume forecast and selling price evolution, the reporting unit’s market penetration and its revenues evolution, the market acceptance of certain new technologies and products, the relevant cost structure, the discount rates applied using a weighted average cost of capital and the perpetuity rates used in calculating cash flow terminal values.

2.10 – Intangible assets with finite useful lives

Intangible assets subject to amortization include the intangible assets purchased from third parties recorded at cost and intangible assets acquired in business combinations recorded at fair value. Amortization begins when the intangible asset is available for use and is calculated using the straight-line method to allocate the cost of the intangible assets over their estimated useful lives.

The carrying value of intangible assets with finite useful lives is evaluated whenever changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in the consolidated statements of income on the line “Impairment, restructuring charges and other related closure costs” for the amount by which the asset’s carrying amount exceeds its fair value. The Company evaluates the remaining useful life of an intangible asset at each reporting date to determine whether events and circumstances warrant a revision to the remaining period of amortization.

Trademarks, technologies and licenses

Separately acquired trademarks and licenses are recorded at historical cost. Trademarks and licenses acquired in a business combination are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life which ranges from 3 to 7 years and are carried at cost less accumulated amortization and impairment losses, if any.

Computer software

Separately acquired computer software is recorded at historical cost. Costs associated with maintaining computer software programs are expensed as incurred and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to their intended use. The capitalization of costs for internally generated software developed by the Company for its internal use begins when the preliminary project stage is completed and when the Company, implicitly or explicitly, authorizes and commits to funding a computer software project. It must be probable that the project will be completed and will be used to perform the function intended. Amortization on computer software begins when the software is available for use and is calculated using the straight-line method over the estimated useful life, which does not exceed 4 years.

2.11 – Property, plant and equipment

Property, plant and equipment are stated at historical cost, net of accumulated depreciation and any impairment losses. Property, plant and equipment acquired in a business combination are recognized at fair value at the acquisition date. Major additions and improvements are capitalized, while minor replacements and repairs are expensed and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to their intended use.

Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows:



Buildings			33 years

Facilities and leasehold improvements			5-10 years

Machinery and equipment			3-10 years

Computer and R&D equipment			3-6 years

Other			2-5 years

The Company evaluates each period whether there is reason to suspect that tangible assets or groups of assets held and used might not be recoverable. Several impairment indicators exist for making this assessment, such as: restructuring plans, significant changes in the technology, market, economic or legal environment in which the Company operates, available evidence of obsolescence of the asset, or indication that its economic performance is, or will be, worse than expected. In determining the recoverability of assets to be held and used, the Company initially assesses whether the carrying value of the tangible assets or group of assets exceeds the undiscounted cash flows associated with these assets. If exceeded, the Company then evaluates whether an impairment charge is required by determining if the asset’s carrying value also exceeds its fair value. This fair value is normally estimated by the Company based on independent market appraisals or the sum of discounted future cash flows, using market assumptions such as the utilization of the Company’s fabrication facilities and the ability to upgrade such facilities, change in the selling price and the adoption of new technologies. The Company also evaluates, and adjusts if appropriate, the assets’ useful lives, at each date or when impairment indicators are identified.

When property, plant and equipment are retired or otherwise disposed of, the net book value of the assets is removed from the Company’s books. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in “Other income and expenses, net” in the consolidated statements of income.

Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. Assets leased under capital leases are included in “Property, plant and equipment, net” on the consolidated balance sheets and recorded at inception at the lower of their fair value and the present value of the minimum lease payments. They are depreciated over the shorter of the estimated useful life and the lease term unless there is a reasonable certainty that ownership will be obtained by the end of the lease term. The financial liability corresponding to the contractual obligation to proceed to future lease payments is included as “Long-term debt” on the consolidated balance sheets, as described in Note 2.14. Lease arrangements classified as operating leases are arrangements in which the lessor retains a significant portion of the risks and rewards of ownership of the leased assets. Payments made under operating leases are recognized on a straight-line basis over the lease period and reported as “Cost of sales”, “Selling, general and administrative”, or “Research and development” in the consolidated statements of income according to the intended use of the leased asset.

2.12 – Investments in equity securities

Investments in equity securities that have readily determinable fair values and for which the Company does not have the ability to exercise significant influence are classified as trading or available-for-sale equity securities, as described in Note 2.22. Investments in equity securities without readily determinable fair values and for which the Company does not have the ability to exercise significant influence are accounted for under the cost-method. Under the cost-method of accounting, investments are carried at historical cost and are adjusted only for declines in value deemed to be other-than-temporary. The fair value of a cost-method investment is estimated on a non-recurring basis when there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. An impairment loss is immediately recorded in the consolidated statements of income on the line “Loss on financial instruments, net” when it is assessed to be other-than-temporary and is based on the Company’s assessment of any significant and sustained reductions in the investment’s fair value. For unquoted equity securities, assumptions and estimates used in measuring fair value include the use of recent arm’s length transactions when they reflect the orderly exit price of the investments. Gains and losses on investments sold are determined on the specific identification method and are recorded as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income.

Equity-method investments are all entities over which the Company has the ability to exercise significant influence but not control, generally representing a shareholding of between 20% and 50% of the voting rights. These investments are valued under the equity-method and are initially recognized at cost. Goodwill on equity-method investments is included in the carrying value of the investment and is not individually tested for impairment. The Company’s share in the result of operations of equity-method investments is recognized in the consolidated statements of income on the line “Income (loss) on equity-method investments” and in the consolidated balance sheets as an adjustment to the carrying amount of the investments. Where there has been a change recognized directly in the equity of the investee, the Company recognizes its share in the adjustment, when applicable, directly in the consolidated statement of equity. The financial statements of the equity-method investments are prepared for the same reporting period as the Company or with a time lag not exceeding three months if the investee cannot issue consolidated financial statements within the closing timeframe requirements of the Company. At each period-end, the Company assesses whether there is objective evidence that its interests in equity-method investments are impaired. Once a determination is made that an other-than-temporary impairment exists, the Company writes down the carrying value of the equity-method investment to its fair value at the balance sheet date, which establishes a new cost basis. The fair value of an equity-method investment is measured on a non-recurring basis using primarily a combination of an income approach, based on discounted cash flows, and a market approach with financial metrics of comparable public companies.

2.13 – Provisions

In determining loss contingencies, the Company considers the likelihood of the incurrence of a liability as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss from a loss contingency is accrued when information available indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and when the amount of the loss can be reasonably estimated.

2.14 – Long-term debt

(a)

Convertible debt

The Company evaluates at initial recognition of a convertible debt the different components and features of the hybrid instruments and determines whether certain elements are embedded derivative instruments which require bifurcation. Components of convertible debt instruments that may be settled in cash upon conversion based on a net-share settlement basis are accounted for separately as long-term debt and equity when the conversion feature of the convertible bonds constitute an embedded equity instrument. When an equity instrument is identified, proceeds from issuance are allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. The liability component is measured as the fair value of a similar nonconvertible debt, which results in the recognition of a debt discount. On subsequent periods, the Company amortizes the debt discount through earnings on the line “Interest income (expense), net” of the consolidated statements of income, using the interest method, based on the expected maturity of the debt. The equity component is not remeasured.

Debt issuance costs are reported as a deduction of debt. They are subsequently amortized through earnings on the line “Interest income (expense), net” of the consolidated statements of income, using the effective interest rate method.

(b)

Bank loans

Bank loans and non-convertible senior bonds are recognized at historical cost, net of debt issuance costs incurred. They are subsequently reported at amortized cost; any difference between the proceeds (net of debt issuance costs) and the redemption value is recognized through earnings on the line “Interest income (expense), net) of the consolidated statements of income over the period of the borrowings using the effective interest rate method.

(c)

Capital leases

Lease arrangements in which the Company has substantially all the risks and rewards of ownership are classified as capital leases. The Company reports the leased assets on the line “Property, plant and equipment, net” on the consolidated balance sheets and recognizes a financial liability for the contractual obligation to future lease payments, which is reported as “Long-term debt” on the consolidated balance sheets. Each lease payment is allocated between the debt repayment and interest expense.

2.15 – Employee benefits

(a) Pension obligations

The Company sponsors various pension schemes for its employees. These schemes conform to local regulations and practices in the countries in which the Company operates. Such plans include both defined benefit and defined contribution plans. For defined benefit pension plans, the liability recognized in the consolidated balance sheets is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The overfunded or underfunded status of the defined benefit plans are calculated as the difference between plan assets and the projected benefit obligations. Significant estimates are used in determining the assumptions incorporated in the calculation of the pension obligations, which is supported by input from independent actuaries. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in “Accumulated Other Comprehensive Income (Loss)” in the consolidated statements of equity and are charged or credited to income over the employees’ expected average remaining working lives. Past service costs are recognized immediately in earnings, unless the changes to the pension scheme are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are recognized in “Accumulated Other Comprehensive Income (Loss)” in the consolidated statements of equity and are amortized on a straight-line basis over the vesting period. The net periodic benefit cost of the year is determined based on the assumptions used at the end of the previous year.

For defined contribution pension plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

(b) Other post-employment obligations

The Company provides post-employment benefits to some of its retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and to the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to income over the expected average remaining working lives of the related employees.

(c) Termination benefits

Termination benefits are payable when an employee is involuntarily terminated, or whenever an employee accepts voluntary termination in exchange for termination benefits. For the accounting treatment and timing recognition of involuntary termination benefits, the Company distinguishes between one-time termination benefit arrangements and ongoing termination benefit arrangements. A one-time termination benefit arrangement is established by a termination plan and applies to a specified termination event. One-time involuntary termination benefits are recognized as a liability when the termination plan meets certain criteria and has been communicated to employees. If employees are required to render future service in order to receive these one-time termination benefits, the liability is recognized ratably over the future service period. Termination benefits other than one-time termination benefits are termination benefits for which the communication criterion is not met but that are committed to by management, or termination obligations that are not specifically determined in a new and single plan. These termination benefits are all legal, contractual and past practice termination obligations to be paid to employees in case of involuntary termination. These termination benefits are accrued for when commitment creates a present obligation to others for the benefits expected to be paid, when it is probable that employees will be entitled to the benefits and the amount can be reasonably estimated.

In case of special termination benefits related to voluntary redundancy programs, the Company recognizes a provision for voluntary termination benefits at the date on which the employee irrevocably accepts the offer and the amount can be reasonably estimated.

(d) Profit-sharing and bonus plans

The Company recognizes a liability and an expense for bonuses and profit-sharing plans when it is contractually obliged or where there is a past practice that has created a present obligation.

(e) Other long-term employee benefits

The Company provides long-term employee benefits such as seniority awards in certain countries. The entitlement to these benefits is usually conditional on the employee completing a minimum service period. The expected costs of these benefits are accrued over the period of employment. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to earnings in the period of change. These obligations are valued annually with the assistance of independent qualified actuaries.

(f) Share-based compensation

The Company grants unvested stock awards to senior executives and selected employees for services. The awards granted to employees vest over a three-year service period. For certain employees, awards contingently vest upon achieving certain performance conditions. The Company measures the cost of the awards based on the grant-date fair value of the awards, reflecting the market price of the underlying shares at the date of the grant, reduced by the present value of the dividends expected to be paid on the shares during the requisite service period. That cost is recognized using graded vesting over the period during which an employee is required to provide service in exchange for the award or the requisite service period. Compensation is recognized only for the awards that ultimately vest. The compensation cost is recorded through earnings against equity, under “Capital surplus” in the consolidated statements of equity. The compensation cost is calculated based on the number of awards expected to vest, which includes assumptions on the number of awards to be forfeited due to the employees’ failing to fulfill the service condition, and forfeitures following the non-completion of one or more performance conditions.

Liabilities for the Company’s portion of payroll taxes are recognized at vesting, which is the event triggering the payment of the social contributions in most of the Company’s local tax jurisdictions. Employee-related social charges are measured based on the intrinsic value of the share at vesting date.

2.16 – Share capital

Ordinary shares are classified as “Common stock” within equity on the consolidated balance sheets. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where the Company purchases its own equity share capital (treasury stock), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company’s shareholders until the shares are cancelled, reissued or disposed of.

2.17 – Comprehensive income (loss)

Comprehensive income (loss) is defined as the change in equity of a business during a period except those changes resulting from investment by stockholders and distributions to stockholders. In the accompanying consolidated financial statements, “Other comprehensive income (loss)” and “Accumulated other comprehensive income” primarily consists of foreign currency translation adjustments, temporary unrealized gains (losses) on securities classified as available-for-sale, unrealized gains (losses) on derivatives designated as cash flow hedge and the impact of recognizing the funded status of defined benefit plans, net of tax.

2.18 – Revenue Recognition

Revenue is recognized as follows:

Net sales

Revenue from products sold to customers is recognized when all the following conditions have been met: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred; (c) the selling price is fixed or determinable; and (d) collection is reasonably assured. Revenue recognition usually occurs at the time of shipment.

Consistent with standard business practice in the semiconductor industry, price protection is granted to distribution customers on their existing inventory of the Company’s products to compensate them for declines in market prices. The Company accrues a provision for price protection based on a rolling historical price trend computed on a monthly basis as a percentage of gross distributor sales. This historical price trend represents differences in recent months between the invoiced price and the final price to the distributor, adjusted if required, to accommodate a significant change in the current market price. The short outstanding inventory time period, visibility into the inventory product pricing and long distributor pricing history have enabled the Company to reliably estimate price protection provisions at period-end. The Company records the accrued amounts as a deduction of “Net sales” in the consolidated statements of income at the time of the sale.

The Company’s customers occasionally return the Company’s products for technical reasons. The Company’s standard terms and conditions of sale provide that if the Company determines that products do not conform, the Company will repair or replace the non-conforming products, or issue a credit note or rebate of the purchase price. Quality returns are identified shortly after sale in customer quality control testing. Quality returns are usually associated with end-user customers, not with distribution channels. The Company records the accrued amounts as a deduction of “Net sales” in the consolidated statements of income, using past history and current conditions to form a reasonable estimate of future returns.

The Company’s insurance policy relating to product liability covers third party physical damages and bodily injury, indirect financial damages as well as immaterial non-consequential damages caused by defective products. The Company records a provision for warranty costs as a charge against “Cost of sales” in the consolidated statements of income, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period. Any potential warranty claims are subject to the Company’s determination that the Company is at fault for damages, and such claims usually must be submitted within a short period of time following the date of sale. This warranty is given in lieu of all other warranties, conditions or terms expressed or implied by statute or common law. The Company’s contractual terms and conditions typically limit its liability to the sales value of the products which gave rise to the claims.

While the majority of the Company’s sales agreements contain standard terms and conditions, the Company may, from time to time, enter into agreements that contain multiple elements or terms and conditions, which require judgment. Where multiple elements exist in an arrangement, the arrangement consideration is allocated to the different elements based on their respective selling price determined using vendor-specific objective evidence, third party evidence or management’s best estimate of the selling price of the separable deliverables and the applicable revenue recognition criteria are applied to each of the separate elements. These arrangements generally do not include performance-, cancellation-, termination- or refund-type provisions.

Other revenues

Other revenues consist of license revenue, service revenue related to transferring licenses, patent royalty income, sale of scrap materials and manufacturing by-products.

Funding

The Company receives funding mainly from governmental agencies and income is recognized when all contractual conditions for receipt of these funds are fulfilled. The Company’s primary sources for government funding are French, Italian and other European Union (“EU”) governmental entities. Such funding is generally provided to encourage research and development activities, industrialization and local economic development. The conditions for receipt of government funding may include eligibility restrictions, approval by EU authorities, annual budget appropriations, compliance with European Commission regulations, as well as specifications regarding objectives and results. Certain specific contracts contain obligations to maintain a minimum level of employment and investment during a certain period of time. There could be penalties if these objectives are not fulfilled. Other contracts contain penalties for late deliveries or for breach of contract, which may result in repayment obligations. Funding related to these contracts is recorded when the conditions required by the contracts are met. The Company’s funding programs are classified under three general categories: funding for research and development activities, capital investment, and loans.

Funding for research and development activities is the most common form of funding that the Company receives. Public funding for research and development is recorded as “Other income and expenses, net” in the Company’s consolidated statements of income. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions are met. Furthermore, French research tax credits (“Crédit Impôt Recherche”) are deemed to be grants in substance. The research tax credits are to be paid in cash by the French tax authorities within three years in case they are not deducted from income tax payable during this period of time. Unlike other research and development funding, the amounts to be received are determinable in advance and accruable as the funded research expenditures are made. They are thus reported as a reduction of “Research and development” in the consolidated statements of income.

Capital investment funding is recorded as a reduction of “Property, plant and equipment, net” and is recognized in the Company’s consolidated statements of income according to the depreciation charges of the funded assets during their useful lives. The Company also receives capital funding in Italy, which can be recovered through the reduction of various governmental liabilities, including income taxes, value-added tax and employee-related social charges.

Funding receivables are reported as non-current assets unless cash settlement features of the receivables evidence that collection is expected within one year. Long-term receivables that do not present any tax attribute or legal restriction are reflected in the consolidated balance sheets at their net present value. The subsequent accretion of the discounting effect is recorded as non-operating income in “Interest income (expense), net” in the consolidated statements of income.

The Company receives certain loans, mainly related to large capital investment projects, at preferential interest rates. The Company records these loans as “Long-term debt” in the consolidated balance sheets.

2.19 – Advertising costs

Advertising costs are expensed as incurred and are recorded as “Selling, general and administrative” in the consolidated statements of income. Advertising expenses for 2016, 2015 and 2014 were $11 million, $9 million and $8 million, respectively.

2.20 – Research and development

Research and development expenses include costs incurred by the Company, the Company’s share of costs incurred by other research and development interest groups, and costs associated with co-development contracts. Research and development expenses do not include marketing design center costs, which are accounted for as “Selling, general and administrative” in the consolidated statements of income and process engineering, pre-production or process transfer costs which are recorded as “Cost of sales” in the consolidated statements of income. Research and development costs are expensed as incurred. The amortization expense recognized on technologies and licenses purchased by the Company from third parties to facilitate the Company’s research is reported as “Research and development” in the consolidated statements of income.

2.21 – Start-up and phase-out costs

Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six-months after the fabrication line’s quality qualification. The costs of phase-outs are associated with the latest stages of facilities closure when the relevant production volumes become immaterial. Start-up costs and phase-out costs are included in “Other income and expenses, net” in the consolidated statements of income.

2.22 – Financial assets

The Company did not hold at December 31, 2016 and 2015 any financial assets classified as held-to-maturity or financial assets for which the Company would have elected to apply the fair value option. Consequently, the Company classified its financial assets in the following categories: trading and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Purchases and sales of financial assets are recognized on the trade date – the date on which the Company commits to purchase or sell the asset. Financial assets classified as available-for-sale and as trading are initially recognized and subsequently carried at fair value. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership; the relevant gain (loss) is reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The basis on which the cost of a security sold and the amount reclassified out of accumulated other comprehensive income into earnings are determined is the specific identification method.

The fair values of quoted debt and equity securities are based on current market prices. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using assumptions and estimates. In measuring fair value, the Company makes maximum use of market inputs and minimizes the use of unobservable inputs.

Trading financial assets

A financial asset is classified in this category if it is a security acquired principally for the purpose of selling in the short term or if it is a derivative instrument not designated as a hedge. Financial assets in this category are classified as current assets when they are expected to be realized within twelve months of the balance sheet date. Marked-to-market gains or losses arising from changes in the fair value of trading financial assets are reported in the consolidated statements of income within “Other income and expenses, net” in the period in which they arise, when the transactions for such instruments occur within the Company’s operating activities, as it is the case for trading derivatives that do not qualify as hedging instruments, as described in Note 2.23. Gains and losses arising from changes in the fair value of financial assets not related to operating activities, are presented in the consolidated statements of income as a non-operating element within “Gain (loss) on financial instruments, net” in the period in which they arise.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified as held-for-trading. They are included in current assets when they represent investments of funds available for current operations or when management intends to dispose of the securities within twelve months of the balance sheet date.

Changes in fair value, including declines determined to be temporary, of securities classified as available-for-sale are recognized as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income.

The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets classified as available-for-sale is impaired. When equity securities classified as available-for-sale are determined to be other-than-temporarily impaired, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element as “Gain (loss) on financial instruments, net” on the consolidated statements of income. For debt securities, if a credit loss exists, but the Company does not intend to sell the impaired security and is not more likely than not to be required to sell before recovery, the impairment is separated into the estimated amount relating to credit loss, and the amount relating to all other factors of declines in fair value. Only the estimated credit loss amount is recognized immediately in earnings, with the remainder of the loss amount recognized in “Accumulated other comprehensive income (loss)” in the consolidated balance sheets. Impairment losses recognized in the consolidated statements of income are not reversed through earnings.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments previously recognized in comprehensive income are reported as a non-operating element on the consolidated statements of income on the line “Gain (loss) on financial instruments, net”. The cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings is determined based on the specific identification of the securities sold.

2.23 – Derivative financial instruments and hedging activities

Derivative financial instruments are initially recognized on the date a derivative contract is entered into and are subsequently measured at fair value. The method of recognizing the gain or loss resulting from the derivative instrument depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the hedge transaction. The Company has designated certain derivatives as hedges of a particular risk associated with a highly probable forecasted transaction (cash flow hedge).

The Company documents, at inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Derivative instruments that are not designated as hedges are classified as trading financial assets, as described in Note 2.22.

Derivative financial instruments classified as trading

The Company conducts its business on a global basis in various major international currencies. As a result, the Company is exposed to adverse movements in foreign currency exchange rates. The Company enters into foreign currency forward contracts and currency options to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies at the Company’s subsidiaries. These instruments do not qualify as hedging instruments, and are marked-to-market at each period-end with the associated changes in fair value recognized in “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.22.

Cash Flow Hedge

As part of its ongoing operating, investing and financing activities, the Company enters into certain derivative transactions that may be designated and may qualify as hedging instruments. To reduce its exposure to U.S. dollar exchange rate fluctuations, the Company hedges certain Euro-denominated forecasted transactions that cover at reporting date a large part of its research and development, and selling, general and administrative expenses as well as a portion of its front-end manufacturing costs of semi-finished goods within cost of sales through the use of currency forward contracts and currency options, including collars. The Company also hedges through the use of currency forward contracts certain Singapore dollar-denominated manufacturing forecasted transactions.

The derivative instruments are designated and qualify for cash flow hedge at inception of the contract and on an ongoing basis over the duration of the hedge relationship. They are reflected at their fair value as “Other current assets” or “Other payables and accrued liabilities” in the consolidated balance sheets. The criteria for designating a derivative as a hedge include the instrument’s effectiveness in risk reduction and a one-to-one matching of the derivative instrument to its underlying transaction with the critical terms of the hedging instrument matching the terms of the hedged forecasted transaction. This enables the Company to conclude that changes in cash flows attributable to the risk being hedged are expected to be completely offset by the hedging instruments.

For derivative instruments designated as cash flow hedge, the change in fair value for the effective portion of the hedge is reported as a component of “Other comprehensive income (loss)” in the consolidated statements of comprehensive income and is reclassified into earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line as the hedged transaction. For these derivatives, ineffectiveness appears if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transaction. Effectiveness on transactions hedged through purchased options is measured on the full fair value of the option, including time value.

When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was reported in “Accumulated other comprehensive income (loss)” in the consolidated statements of equity is immediately transferred to the consolidated statements of income within “Other income and expenses, net” if the de-designated derivative relates to operating activities. If upon de-designation, the derivative instrument is held in view to be sold with no direct relation with current operating activities, changes in the fair value of the derivative instrument following de-designation are reported as a non-operating element on the line “Gain (loss) on financial instruments, net” in the consolidated statements of income. If the derivative is still related to operating activities, the changes in fair value subsequent to the discontinuance is reported within “Other income and expenses, net” in the consolidated statements of income, as described in Note 2.22.

2.24 – Recent accounting pronouncements

(a)

Accounting pronouncements adopted in 2016

Amended accounting guidance effective in 2016 had no material impact on the Company’s financial position, results of operations and disclosures.

(b)

Accounting pronouncements expected to impact the Company’s operations that are not yet effective and have not been adopted early by the Company

In May 2014, the FASB issued the converged guidance on revenue from contracts with customers, updated in 2016 and 2017 with finalized amendments addressing implementation issues. The new guidance sets forth a single revenue accounting model, which calls for more professional judgment and includes expanded disclosures. Revenue recognition depicts the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled for these goods and services. Revenue is recognized when (or as) control of the goods and services is transferred to the customer. Even if the revenue recognition guidance is not a five-step model, the following steps can be identified in order to apply the new revenue accounting model: (i) identification of the contracts with customers; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to performance obligations; and (v) revenue recognition for each performance obligation. The new guidance will be effective for the Company’s first interim period within the annual reporting period beginning on January 1, 2018, with early adoption permitted as at January 1, 2017. The Company will adopt the new guidance when effective. The areas in which the new revenue recognition may create significant changes are: (i) changes in the timing of revenue recognition; (ii) inclusion of variable consideration in the transaction price; and (iii) allocation of the transaction price based on relative standalone selling prices. The Company is currently in the process of assessing the anticipated impact of the amended standard on existing revenue streams, contracts, transactions, and business practices. Based on procedures performed to date, we generally anticipate substantially similar performance conditions under the amended guidance, as such no material impact on the Company revenue recognition practices is expected. The guidance provides companies with alternative methods of adoption and we are in the process of determining our method of adoption, which depends in part upon our completion of the evaluation of our remaining revenue arrangements.

In November 2015, the FASB modified the balance sheet classification of deferred taxes, as part of its initiatives to reduce complexity in accounting standards. The new guidance requires that deferred tax assets and liabilities be classified as non-current elements in a classified balance sheet. Current guidance requires an entity to separate deferred income tax assets and liabilities into current and non-current amounts. The new guidance does not change current practice for offsetting and presenting as a single amount deferred tax assets and liabilities of a tax-paying component of an entity. The simplified presentation guidance is effective for public companies for financial statements issued for annual and interim periods beginning after December 15, 2016. The Company will adopt the new guidance when effective and will change the presentation of deferred tax assets and liabilities accordingly.

In January 2016, the FASB issued new guidance on the recognition and measurement of financial instruments. Changes to current practice primarily affect the accounting for investments in equity securities, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance relating to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. All equity investments in unconsolidated entities other than those accounted for using the equity method of accounting will generally be measured at fair value through earnings (the available-for-sale classification disappears for these financial assets). For equity investments without readily determinable fair values, the cost method is also eliminated. Additionally, when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company will adopt the new guidance when effective and is currently assessing its impact on existing financial instruments.

In February 2016, the FASB issued new guidance on lease accounting. As a lessee, an entity will need to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability. Additionally, when applying the new guidance, lessees will have to identify leases embedded in a contract. For income statement purposes, the new guidance is still based on a dual model, requiring leases to be classified as either operating or finance leases. Classification criteria are largely similar to current lease accounting guidance, except that the new guidance does not contain explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition guidance. Existing sale-leaseback guidance has been replaced with a new model applicable to both lessees and lessors. The new guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company will adopt the new guidance when effective and is currently assessing its impact on its consolidated financial statements.

In March 2016, the FASB issued new guidance on employee share-based payment accounting. The guidance includes multiple provisions intended to simplify accounting, which impacts income tax accounting, earnings per share, estimates relating to forfeitures and the statement of cash flows. The new guidance is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company will adopt the new guidance when effective and the new guidance is not expected to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued new guidance on measuring credit losses for financial instruments. The objective of the new guidance is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, primarily financial assets measured at amortized cost and available-for-sale debt securities, and other commitments to extend credit held by a reporting entity at each reporting date. The amended guidance replaces the incurred loss impairment methodology applied in current practice with an approach that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit losses estimates. The new guidance is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those years. The Company will adopt the new guidance when effective and is currently assessing its impact on its consolidated financial statements.

In August and November 2016, the FASB issued amended guidance on clarifying the cash flow classification of certain topics in order to avoid diversity in practice. The issues addressed in August 2016 are debt prepayment or debt extinguishment costs (Issue 1); settlement of zero-coupon debt instruments (Issue 2); contingent consideration payments made after a business combination (Issue 3); proceeds from the settlement of insurance claims (Issue 4); proceeds from settlement of corporate-owned life insurance (COLI) policies, including bank-owned life insurance (BOLI) policies (Issue 5); distributions received from equity method investments (Issue 6); beneficial interests in securitization transactions (Issue 7) and separately identifiable cash flows and application of the predominance principle (Issue 8). The new guidance issued in November 2016 addressed the presentation of restricted cash in the cash flow statement, by requiring that the financial statement explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, with a mandatory reconciliation of this total to amounts on the balance sheet and disclosure about the nature of the restrictions. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those years, with early adoption permitted. The Company will adopt the new guidance when effective. The Company is currently assessing the impact those amendments may have on its consolidated statement of cash flows. Those impacts are primarily related to Issues 2, 3 and 6 and restricted cash.

In January 2017, and after issuing in October 2016 a narrow-scope amendment to the consolidation guidance, the FASB revised the definition of a business. In the amended guidance, an acquisition, to be considered as a business, will have to include an input and a substantive process that together significantly contribute to the ability to create outputs. Businesses without outputs will need to have an organized workforce to qualify as a business. Additionally, the amended guidance will narrow the term “outputs”. The amended guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company will adopt the new guidance when effective.

In January 2017, the FASB simplified the accounting for goodwill impairment by removing step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The amended guidance is effective for public companies for annual and interim periods in fiscal years beginning after December 15, 2019, with early application permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company will adopt the new guidance when effective.

Marketable Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

MARKETABLE SECURITIES

Changes in the value of marketable securities, as reported in current assets on the consolidated balance sheets as at December 31, 2016 and December 31, 2015 are detailed in the tables below:


	December 31, 2015		Purchase		Sale		Change in fair value included in OCI*		Change in fair value recognized in earnings		December 31, 2016
U.S. Treasury Bonds		335		—		—		—		—		335

Total		335		—		—		—		—		335

*	Other Comprehensive Income


	December 31, 2014		Purchase		Sale		Change in fair value included in OCI*		Change in fair value recognized in earnings		December 31, 2015
U.S. Treasury Bonds		334		—		—		1		—		335

Total		334		—		—		1		—		335

*	Other Comprehensive Income

As at December 31, 2016, the Company held $335 million in U.S. Treasury bonds. The bonds had an average rating of Aaa/AA+/AAA from Moody’s, S&P and Fitch, respectively, with a weighted average maturity of 3.3 years. The debt securities were reported as current assets on the line “Marketable Securities” on the consolidated balance sheet as at December 31, 2016, since they represented investments of funds available for current operations. The bonds were classified as available-for-sale and recorded at fair value as at December 31, 2016 and 2015, respectively. This fair value measurement corresponds to a Level 1 fair value hierarchy measurement. The aggregate amortized cost basis of these securities totaled $332 million as at December 31, 2016.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Trade Accounts Receivable, Net

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Trade Accounts Receivable, Net

TRADE ACCOUNTS RECEIVABLE, NET

Trade accounts receivable, net consisted of the following:


	December 31, 2016			December 31, 2015
Trade accounts receivable		951			827
Allowance for doubtful accounts		(12	)		(7	)

Total		939			820

Bad debt expense in 2016 was $3 million, while in 2015 it was $2 million and in 2014 it was less than $1 million. No customers represented over 10% of consolidated net revenues in 2016, 2015 and 2014.

The Company enters into factoring transactions to accelerate the realization in cash of some trade accounts receivable. As at December 31, 2016, there were no trade accounts receivable sold without recourse, while as at December 31, 2015, trade accounts receivable were sold without recourse for $48 million. Such factoring transactions totaled respectively $97 million and $195 million for the years 2016 and 2015.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Reserve for obsolescence is estimated for excess uncommitted inventories based on the previous quarter’s sales, backlog of orders and production plans.

Inventories, net of reserve, consisted of the following:


	December 31, 2016		December 31, 2015
Raw materials		81		74
Work-in-process		756		804
Finished products		336		373

Total		1,173		1,251

Other Current Assets

12 Months Ended

Dec. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

OTHER CURRENT ASSETS

Other current assets consisted of the following:


	December 31, 2016		December 31, 2015
Receivables from government agencies		150		233
Taxes and other government receivables		39		36
Advances		28		26
Prepayments		47		56
Loans and deposits		9		9
Interest receivable		4		1
Derivative instruments		2		5
Other current assets		32		41

Total		311		407

Derivative instruments are further described in Note 24.

Business Combination

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Business Combination

BUSINESS COMBINATION

On July 28, 2016, the Company completed a transaction to acquire ams’ (SIX: AMS) assets and workforce related to Near-Field Communication (NFC) and Radio-frequency identification (RFID) Reader business. The acquired business, combined with the Company’s secure microcontrollers, positions the Company for a significant growth opportunity, with a complete portfolio of best-in-class technologies, products and competencies that comprehensively address the full range of the NFC and RFID markets for a wide customer base.

The Company acquired intellectual property, technologies, products and business highly complementary to its secure microcontroller solutions serving mobile devices, wearables, banking, identification, industrial, automotive and IoT markets. As part of the transaction, 46 technical experts from ams have also been transferred to the Company.

This transaction has been accounted for as a business combination. The activities of this business are included in the Microcontrollers and Digital ICs Group (MDG) reportable segment. The purchase price allocation was finalized in the fourth quarter of 2016 and did not result in any adjustments to the preliminary allocation performed in the third quarter of 2016. The fair value of the identifiable assets and assumed liabilities acquired from ams at acquisition date were as follows:


	Fair value recognized at acquisition date
Property, plant and equipment		2
Technology		6
In-process R&D		40
Goodwill		42

Total net assets at fair value		90

Purchase consideration		90

The purchase consideration includes a cash payment of $78 million and the acquisition-date fair value of a sales earn-out of $12 million which in any case will not exceed $37 million. Goodwill on this transaction arises principally due to the value of the assembled workforce.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4934-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Goodwill

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

GOODWILL

Goodwill allocated to reportable segments as of December 31, 2016 and 2015 and changes in the carrying amount of goodwill during the years ended December 31, 2016 and 2015 are as follows:


	Automotive and Discrete Group (ADG)		Microcontrollers and Digital ICs Group (MDG)			Analog and MEMS Group (AMG)		Others		Total
December 31, 2014		—		80			2		—		82

Foreign currency translation		—		(6	)		—		—		(6	)

December 31, 2015		—		74			2		—		76

Business combination		—		42			—		—		42

Foreign currency translation		—		(2	)		—		—		(2	)

December 31, 2016		—		114			2		—		116

As described in Note 26, during the first quarter of 2016, the internal organization changed to align with the Company’s strategic focus on Smart Driving and on Internet of Things applications and this resulted in a change in the Company’s reportable segments. Goodwill was allocated to the new reportable segments following the allocation of the reporting units for which it was related. The Company also completed an assessment of any potential goodwill impairment immediately prior to the reallocation and determined that no impairment existed.

As described in Note 7, the acquisition of ams’s NFC and RFID Reader business resulted in the recognition of a $42 million goodwill which has been included in the MDG segment to align the goodwill for the acquired businesses with the segment for which their activities will be reported.

During the third quarter of 2016, the Company performed its annual impairment campaign. The Company did not elect to perform a qualitative assessment. The impairment test was conducted following a two-step process. In the first step, the Company compared the fair value of the reporting unit tested to its carrying value. Based upon the first step of the goodwill impairment test, no impairment was recorded since the fair value of the reporting unit exceeded its carrying value.

Goodwill as at December 31, 2016 and 2015 is net of accumulated impairment losses of $102 million, of which $96 million relates to the MDG segment and $6 million to Others. In 2016, 2015 and 2014, no impairment loss was recorded by the Company on any of its reporting units’ goodwill.

Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangible Assets

OTHER INTANGIBLE ASSETS

Other intangible assets consisted of the following:


December 31, 2016	Gross Cost		Accumulated Amortization			Net Cost
Technologies & licences		618		(534	)		84
Contractual customer relationships		4		(4	)		—
Purchased & internally developed software		407		(347	)		60
Construction in progress		51		—			51
Other intangible assets		65		(65	)		—

Total		1,145		(950	)		195


December 31, 2015	Gross Cost		Accumulated Amortization			Net Cost
Technologies & licences		593		(511	)		82
Contractual customer relationships		4		(4	)		—
Purchased & internally developed software		387		(321	)		66
Construction in progress		18		—			18
Other intangible assets		65		(65	)		—

Total		1,067		(901	)		166

The line “Construction in progress” in the table above includes internally developed software under construction and software not ready for use.

As described in Note 7, the acquisition of ams’s NFC and RFID Reader business resulted in the recognition of technology for $6 million in “Technologies & licences” and in-process R&D for $40 million in “Construction in progress”.

The amortization expense in 2016, 2015 and 2014 was $61 million, $60 million and $61 million, respectively.

The estimated amortization expense of the existing intangible assets for the following years is:


Year
2017			72
2018			53
2019			36
2020			20
2021			9
Thereafter			5

Total			195

In 2016 and 2015, the Company impaired $4 million and $10 million, respectively, of acquired technologies for which it was determined that they had no alternative future use. In addition, in 2015, $6 million of digital long-lived assets were fully impaired due to the fact that their projected cash flows, over their remaining useful life, were less than their carrying value.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

10.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:


December 31, 2016	Gross Cost		Accumulated Depreciation			Net Cost
Land		73		—			73
Buildings		788		(412	)		376
Facilities & leasehold improvements		2,713		(2,474	)		239
Machinery and equipment		12,808		(11,415	)		1,393
Computer and R&D equipment		362		(324	)		38
Other tangible assets		105		(96	)		9
Construction in progress		159		—			159

Total		17,008		(14,721	)		2,287


December 31, 2015	Gross Cost		Accumulated Depreciation			Net Cost
Land		75		—			75
Buildings		806		(399	)		407
Facilities & leasehold improvements		2,746		(2,482	)		264
Machinery and equipment		12,885		(11,408	)		1,477
Computer and R&D equipment		377		(339	)		38
Other tangible assets		104		(99	)		5
Construction in progress		55		—			55

Total		17,048		(14,727	)		2,321

The line “Construction in progress” in the table above includes property, plant and equipment under construction and equipment under qualification before operating.

Facilities & leasehold improvements, machinery and equipment and other tangible assets include assets acquired under capital lease. The net cost of assets under capital lease was less than $1 million for both the year ended December 31, 2016 and the year ended December 31, 2015.

As described in Note 7, the acquisition of ams’s NFC and RFID Reader business resulted in the recognition of building and machinery for $2 million.

The depreciation charge, which includes amortization for capital lease, was $635 million, $676 million and $750 million in 2016, 2015 and 2014, respectively.

Capital investment funding has totaled $15 million for the year ended December 31, 2016, $7 million for the year ended December 31, 2015 and less than $1 million for the year ended December 31, 2014. Public funding reduced depreciation charges by $6 million, $4 million and $4 million in 2016, 2015 and 2014, respectively.

For the years ended December 31, 2016, 2015 and 2014 the Company sold property, plant and equipment for cash proceeds of $4 million, $62 million and $9 million, respectively.

For the year ended December 31, 2016, the Company impaired $3 million of long-lived assets reclassified as Assets Held for Sale. There was no impairment recognized for the years ended December 31, 2015 and 2014.

Long-Term Investments

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Long-Term Investments

11.

LONG-TERM INVESTMENTS


	December 31, 2016		December 31, 2015
Equity-method investments		45		44
Cost-method investments		12		13

Total		57		57

Equity-method investments

Equity-method investments as at December 31, 2016 and December 31, 2015 were as follows:


	December 31, 2016					December 31, 2015
	Carrying value		Ownership percentage			Carrying value		Ownership percentage
ST-Ericsson SA, in liquidation		45		50.0	%		44		50.0	%

Total		45					44

ST-Ericsson SA, in liquidation

On February 3, 2009, the Company announced the closing of a transaction to combine the businesses of Ericsson Mobile Platforms and ST-NXP Wireless into a new venture, named ST-Ericsson. As part of the transaction, the Company received an interest in ST-Ericsson Holding AG in which the Company owned 50% plus a controlling share. In 2010, ST-Ericsson Holding AG was merged in ST-Ericsson SA.

The Company evaluated that ST-Ericsson SA was a variable interest entity (VIE). The Company determined that it controlled ST-Ericsson SA and therefore consolidated ST-Ericsson SA.

On September 9, 2013, the Company sold 1 ST-Ericsson SA share to Ericsson for its nominal value changing the ownership structure of ST-Ericsson SA to bring both partners to an equal ownership proportion. As a result and in combination with the new shareholder agreement, the Company lost the control of ST-Ericsson SA and as such ST-Ericsson SA was deconsolidated from the Company’s consolidated financial statements. The deconsolidation of ST-Ericsson SA did not result in a gain or loss for the Company. The fair value of the Company’s retained noncontrolling interest was evaluated at $55 million. In addition, the Company and its partner signed funding commitment letters, capped at $149 million for each partner, to the residual joint wind-down operations to ensure solvency. These were not drawn as of December 31, 2016.

Before the deconsolidation of ST-Ericsson SA, certain assets and companies of the ST-Ericsson SA group of companies were transferred to both partners for their net book value which was representative of their fair value. The transactions did not result in cash exchange between the partners.

ST-Ericsson SA entered into liquidation on April 15, 2014. For the years 2016, 2015 and 2014, the line “Income (loss) on equity-method investments” in the Company’s consolidated statement of income included a profit of $1 million, $1 million and $9 million, respectively, in relation with ST-Ericsson SA.

Cost-method investments

Cost-method investments as at December 31, 2016 and 2015 are equity securities with no readily determinable fair value. It includes principally the Company’s investment in DNP Photomask Europe S.p.A (“DNP”). The Company has identified the joint venture as a VIE, but has determined that it is not the primary beneficiary. The significant activities of DNP revolve around the creation of masks and development of high level mask technology. The Company does not have the power to direct such activities. The Company’s current maximum exposure to loss as a result of its involvement with the joint venture is limited to its investment. The Company has not provided additional financial support in years 2016 and 2015 and currently has no requirement or intent to provide further financial support to the joint venture.

Other Non-Current Assets

12 Months Ended

Dec. 31, 2016

Investments, All Other Investments [Abstract]

Other Non-Current Assets

12.

OTHER NON-CURRENT ASSETS

Other non-current assets consisted of the following:


	December 31, 2016		December 31, 2015
Available-for-sale equity securities		11		11
Trading equity securities		8		8
Long-term State receivables		388		403
Long-term receivables from third parties		1		1
Prepaid for pension		—		8
Deposits and other non-current assets		26		28


Total		434		459

Long-term State receivables include receivables related to funding and receivables related to tax refund. Funding are mainly public grants to be received from governmental agencies in Italy and France as part of long-term research and development, industrialization and capital investment projects. Long-term receivables related to tax refund correspond to tax benefits claimed by the Company in certain of its local tax jurisdictions, for which collection is expected beyond one year.

In 2016, the Company entered into a factoring transaction to accelerate the realization in cash of some non-current assets. As at December 31, 2016, $127 million of the non-current assets were sold without recourse, compared to $96 million as at December 31, 2015, with a financial cost of less than $1 million for both periods.

Other Payables and Accrued Liabilities

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Other Payables and Accrued Liabilities

13.

OTHER PAYABLES AND ACCRUED LIABILITIES

Other payables and accrued liabilities consisted of the following:


	December 31, 2016		December 31, 2015
Employee related liabilities		297		283
Employee compensated absences		111		104
Taxes other than income taxes		58		54
Advances		39		44
Payables to equity-method investments		49		49
Derivative instruments		44		25
Provision for restructuring		49		26
Defined benefit plans – current portion		9		8
Defined contribution plans – accrued benefits		16		16
Royalties		20		19
Others		58		75

Total		750		703

Derivative instruments are further described in Note 24.

Other payables and accrued liabilities also include individually insignificant amounts as of December 31, 2016 and December 31, 2015, presented cumulatively in line “Others”.

Long-Term Debt

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

14.

LONG-TERM DEBT

Long-term debt consisted of the following:


	December 31, 2016			December 31, 2015
Funding program loans from European Investment Bank:
0.38% due 2016, floating interest rate at Libor + 0.052%		—			19
1.10% due 2016, floating interest rate at Libor + 0.477%		—			26
1.01% due 2016, floating interest rate at Libor + 0.373%		—			29
2.08% due 2020, floating interest rate at Libor + 1.199%		50			63
2.00% due 2020, floating interest rate at Libor + 1.056%		110			138
0.60% due 2020, floating interest rate at Euribor + 0.917%		53			68
1.79% due 2021, floating interest rate at Libor + 0.525%		150			180
1.86% due 2021, floating interest rate at Libor + 0.572%		144			173

Dual tranche senior unsecured convertible bonds
Zero-coupon, due 2019 (Tranche A)		564			550
1.0% due 2021 (Tranche B)		362			354

Other funding program loans:
0.32% (weighted average), due 2017-2023, fixed interest rate		14			4

Other long-term loans:
1.95% (weighted average), due 2017, fixed interest rate		1			4
0.82% (weighted average), due 2018, fixed interest rate		1			1
0.87% (weighted average), due 2020, fixed interest rate		2			2
Capital leases:
20.80% (weighted average), due 2020, fixed interest rate		0			1
Total long-term debt		1,451			1,612

Less current portion		(117	)		(191	)

Total long-term debt, less current portion		1,334			1,421

Long-term debt is denominated in the following currencies:


	December 31, 2016		December 31, 2015
U.S. dollar		1,380		1,533
Euro		71		79

Total		1,451		1,612

The European Investment Bank’s loans denominated in Euros, but drawn in U.S. dollars, are classified as U.S. dollar-denominated debt.

On July 3, 2014, the Company issued $1,000 million in principal amount of dual tranche senior unsecured convertible bonds (Tranche A for $600 million and Tranche B for $400 million), due 2019 and 2021, respectively. Tranche A bonds were issued as zero-coupon bonds while Tranche B bonds bear a 1% per annum nominal interest, payable semi-annually. The conversion price at issuance was approximately $12 dollar, equivalent to a 30% and a 31% premium, respectively, on each tranche. On October 3, 2016, the conversion price was adjusted up to 1.24% on each tranche, pursuant to a dividend adjustment symmetric provision, which corresponds to 16,491 and 16,366 equivalent shares per each $200,000 bond par value for Tranche A and Tranche B, respectively. The bonds are convertible by the bondholders if certain conditions are satisfied on a net-share settlement basis, consistent with the Company’s intended settlement method. The Company can also redeem the bonds prior to their maturity in certain circumstances. The net proceeds from the bond offering were approximately $994 million, after deducting issuance costs payable by the Company.

Proceeds were allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. The liability component was measured at fair value based on a discount rate adjustment technique (income approach), which corresponds to a Level 3 fair value hierarchy measurement. The fair value of the liability component at initial recognition totalled $878 million and was estimated by calculating the present value of cash flows using a discount rate of 2.40% and 3.22% (including 1% per annum nominal interest), respectively, on each tranche, which were determined to be consistent with the market rates at the time for similar instruments with no conversion rights. An amount of $121 million, net of allocated issuance costs of $1 million, was recorded in shareholders’ equity as the value of the conversion features of the instruments. Unamortized debt discount and issuance costs totalled $74 million as at December 31, 2016 and $95 million as at December 31, 2015.

Aggregate future maturities of total long-term debt (including current portion) at redemption value are as follows:


	December 31,
	2016
2017		117
2018		115
2019		714
2020		114
2021		461
Thereafter		4

Total		1,525

The difference between the total aggregated future maturities in the preceding table and the total carrying amount of long-term debt is due to unamortized debt discount and issuance costs on the dual tranche senior unsecured convertible bonds.

Credit facilities

The Company had unutilized committed medium-term credit facilities with core relationship banks totalling $558 million as of December 31, 2016.

The Company also has two long-term amortizing credit facilities with the European Investment Bank as part of R&D funding programs. The first one, signed on September 27, 2010 as a €350 million multi-currency loan for R&D programs in Europe, was drawn mainly in U.S. dollars for an amount of $321 million and only partially in Euros for an amount of €100 million, of which $213 million remained outstanding as of December 31, 2016. The second one, signed on March 12, 2013, a €350 million multi-currency loan which also supports R&D programs, was drawn in U.S. dollars for $471 million, of which $294 million was outstanding as of December 31, 2016.

Post-Employment and Other Long-Term Employees Benefits

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Post-Employment and Other Long-Term Employees Benefits

15.

POST-EMPLOYMENT AND OTHER LONG-TERM EMPLOYEES BENEFITS

The Company and its subsidiaries have a number of defined benefit pension plans, mainly unfunded, and other long-term employees’ benefits covering employees in various countries. The defined benefit plans provide pension benefits based on years of service and employee compensation levels. The other long-term employees’ plans provide benefits due during the employees’ period of service after certain seniority levels. The Company uses a December 31 measurement date for its plans. Eligibility is generally determined in accordance with local statutory requirements. For Italian termination indemnity plan (“TFR”), generated before July 1, 2007, the Company continues to measure the vested benefits to which Italian employees are entitled as if they left the company immediately as of December 31, 2016, in compliance with U.S. GAAP guidance on determining vested benefit obligations for defined benefit pension plans.

The changes in benefit obligation and plan assets were as follows:


	Pension Benefits						Other Long-Term Benefits
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Change in benefit obligation:

Benefit obligation at beginning of year		816			863			54			65
Service cost		27			28			3			5
Interest cost		25			25			2			2
Employee contributions		7			5			—			—
Benefits paid		(27	)		(27	)		(5	)		(11	)
Effect of curtailment		(6	)		(3	)		(1	)		(1	)
Effect of settlement		(10	)		(10	)		—			—
Actuarial (gain) loss		36			(21	)		—			—
Plan amendment		—			(2	)		—			—
Foreign currency translation adjustment		(43	)		(42	)		(1	)		(6	)

Benefit obligation at end of year		825			816			52			54


Change in plan assets:

Plan assets at fair value at beginning of year		473			480			—			—
Actual return on plan assets		31			(3	)		—			—
Employer contributions		27			28			—			—
Employee contributions		7			5			—			—
Benefits paid		(18	)		(17	)		—			—
Effect of settlement		(10	)		(10	)		—			—
Foreign currency translation adjustments		(33	)		(10	)		—			—

Plan assets at fair value at end of year		477			473			—			—


Funded status		(348	)		(343	)		(52	)		(54	)

Net amount recognized in the balance sheet consisted of the following:
	Pension Benefits						Other Long-Term Benefits
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Non-current assets		—			8			—			—
Current liabilities		(9	)		(8	)		(3	)		(3	)
Long-term liabilities		(339	)		(343	)		(49	)		(51	)

Net amount recognized		(348	)		(343	)		(52	)		(54	)

The components of accumulated other comprehensive income (loss) before tax effects were as follows:


	Actuarial (gains)/losses			Prior service cost			Total
Other comprehensive loss as at December 31, 2014		152			7			159

Net amount generated/arising in current year		3			(2	)		1
Amortization		(11	)		(1	)		(12	)
Foreign currency translation adjustment		(7	)		(1	)		(8	)

Other comprehensive loss as at December 31, 2015		137			3			140

Net amount generated/arising in current year		25			—			25
Amortization		(14	)		(1	)		(15	)

Foreign currency translation adjustment		(9	)		—			(9	)

Other comprehensive loss as at December 31, 2016		139			2			141

In 2017, the Company expects to amortize $9 million of actuarial losses.

The accumulated benefit obligations were as follows:

Pension Benefits

Other Long-Term Benefits

December 31,
2016

December 31,
2015

December 31,
2016

December 31,
2015

Accumulated benefit obligations

762

720

For pension plans with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $738 million and $443 million, respectively, as of December 31, 2016 and $547 million and $284 million, respectively, as of December 31, 2015. For pension plans with benefit obligations in excess of plan assets, the benefit obligation and fair value of plan assets were $811 million and $464 million, respectively, as of December 31, 2016 and $653 million and $302 million, respectively, as of December 31, 2015.

The components of the net periodic benefit cost included the following:


	Pension Benefits									Other Long-term Benefits
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014			Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Service cost		27			28			27			3			5			7
Interest cost		25			25			28			2			2			2
Expected return on plan assets		(20	)		(22	)		(22	)		—			—			—
Amortization of actuarial net loss (gain)		8			7			3			—			—			2
Amortization of prior service cost		1			1			—			—			—			1
Effect of settlement		—			1			1			—			—			—
Effect of curtailment		—			—			—			(1	)		(1	)		—

Net periodic benefit cost		41			40			37			4			6			12

The weighted average assumptions used in the determination of the benefit obligation and the plan assets for the pension plans and the other long-term benefits were as follows:


Assumptions	2016			2015
Discount rate		2.57	%		3.19	%
Salary increase rate		2.74	%		3.07	%
Expected long-term rate of return on funds for the pension expense of the year		3.57	%		4.44	%

The weighted average assumptions used in the determination of the net periodic benefit cost for the pension plans and the other long-term benefits were as follows:


Assumptions	2016			2015			2014
Discount rate		3.19	%		3.03	%		3.83	%
Salary increase rate		3.07	%		2.65	%		2.82	%
Expected long-term rate of return on funds for the pension expense of the year		4.44	%		4.76	%		4.88	%

The discount rate was determined by reference to market yields on high quality long-term corporate bonds applicable to the respective country of each plan, with terms consistent with the term of the benefit obligations concerned. In developing the expected long-term rate of return on assets, the Company modelled the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios.

The Company’s pension plan asset allocation at December 31, 2016 and at December 31, 2015 is as follows:


	Percentage of Plan Assets at December
Asset Category	2016			2015
Cash and cash equivalents		2	%		3	%
Equity securities		29	%		27	%
Government debt securities		3	%		2	%
Corporate debt securities		26	%		26	%
Investments in funds^(a)		18	%		19	%
Real estate		2	%		2	%
Other (mainly insurance assets – contracts and reserves)		20	%		21	%

Total		100	%		100	%

(a)

Investment in funds are composed approximately for one half of commingled funds mainly invested in corporate bonds for 55%, treasury bonds and notes for 35% and municipal bonds for 5% and for the other half of a multi-strategy funds invested in broadly diversified portfolios of corporate and government bonds, equity, fixed income and derivative instruments.

As of December 31, 2016, the Company’s plan asset allocation is in line with the target fixed for each plan.

The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2016 is as follows:


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents		11		11		—		—
Equity securities		137		6		131		—
Government debt securities		13		12		1		—
Corporate debt securities		125		4		121		—
Investment funds		84		6		78		—
Real estate		12		—		11		1
Other (mainly insurance assets – contracts and reserves)		95		—		—		95

TOTAL		477		39		342		96

The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2015 is as follows:


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents		13		13		—		—
Equity securities		128		5		123		—
Government debt securities		10		10		—		—
Corporate debt securities		123		4		119		—
Investment funds		87		5		82		—
Real estate		11		—		10		1
Other (mainly insurance assets – contracts and reserves)		101		—		—		101

TOTAL		473		37		334		102

The fair value of insurance contracts is based on the value of the assets held by the provider. The approach is consistent with prior years.

For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2016 and December 31, 2016 is presented as follows:


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2016		102
Contributions (employer and employee)		16
Actual return on plan assets		(3	)
Benefits paid		(6	)
Settlements		(10	)
Foreign currency translation adjustment		(3	)

December 31, 2016		96

For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2015 and December 31, 2015 is presented as follows:


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2015		102
Contributions (employer and employee)		14
Actual return on plan assets		1
Benefits paid		(3	)
Assets sold during the year		(1	)
Settlements		(9	)
Foreign currency translation adjustment		(2	)

December 31, 2015		102

The Company’s investment strategy for its pension plans is to optimize the long-term investment return on plan assets in relation to the liability structure to maintain an acceptable level of risk while minimizing the cost of providing pension benefits and maintaining adequate funding levels in accordance with applicable rules in each jurisdiction. The Company’s practice is to periodically conduct a review in each subsidiary of its asset allocation strategy, in such a way that the asset allocation is in line with the targeted asset allocation with reasonable boundaries. The Company’s asset portfolios are managed in such a way as to achieve adapted diversity and in certain jurisdictions they are entirely managed by the multi-employer funds. The Company does not manage any assets internally.

After considering the funded status of the Company’s defined benefit plans, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its pension plans in any given year in excess of required amounts. The Company’s contributions to plan assets were $27 million in 2016, $28 million in 2015 and the Company expects to contribute cash of $28 million in 2017.

The Company’s estimated future benefit payments as of December 31, 2016 are as follows:


Years	Pension Benefits		Other Long-term Benefits
2017		36		3
2018		22		3
2019		32		5
2020		29		7
2021		36		3
From 2022 to 2026		233		27

The Company has certain defined contribution plans, which accrue benefits for employees on a pro-rata basis during their employment period based on their individual salaries. The Company accrued benefits related to defined contribution pension plans of $16 million as of December 31, 2016 and December 31, 2015. The annual cost of these plans amounted to approximately $70 million in both 2016 and 2015 and $81 million in 2014.

Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Shareholders' Equity

16.

SHAREHOLDERS’ EQUITY

16.1 Outstanding shares

The authorized share capital of the Company is Euro 1,810 million consisting of 1,200,000,000 common shares and 540,000,000 preference shares, each with a nominal value of €1.04. As at December 31, 2016 the number of shares of common stock issued was 911,030,420 shares (910,967,920 at December 31, 2015).

As of December 31, 2016 the number of shares of common stock outstanding was 883,410,506 (878,537,339 at December 31, 2015).

16.2 Preference shares

The 540,000,000 preference shares, when issued, will entitle a holder to full voting rights and to a preferential right to dividends and distributions upon liquidation.

On January 22, 2007, an option agreement was concluded between the Company and Stichting Continuïteit ST. This option agreement provides for the issuance of 540,000,000 preference shares. The Foundation can acquire preference shares upon payment of at least 25% of the par value of the preference shares to be issued in the event of actions which the board of the Foundation determines would be contrary to our interests, our shareholders and our other stakeholders and which in the event of a creeping acquisition or offer for our common shares are not supported by our Managing Board and Supervisory Board. The preference shares may remain outstanding for no longer than two years.

In October 2016, the Company extended for another 10-year period the existing option agreement with Stichting Continuiteït ST.

There were no preference shares issued as of December 31, 2016 and December 31, 2015 respectively.

16.3 Treasury stock

Following the authorization by the Supervisory Board, announced on April 2, 2008, to repurchase up to 30 million shares of its common stock, the Company acquired 29,520,220 shares in 2008, also reflected at cost, as a reduction of the parent company stockholders’ equity. Additionally, pursuant to a resolution passed at the shareholders’ meeting held on June 13, 2014, the Company repurchased 20,000,000 shares in 2014 under the buy-back program.

As of December 31, 2016, the Company owned a number of treasury shares equivalent to 27,619,914 compared to 32,430,581 as of December 31, 2015.

The treasury shares have been designated for allocation under the Company’s share based remuneration programs of unvested shares. As of December 31, 2016, 35,300,306 of these treasury shares were transferred to employees under the Company’s share based remuneration programs, of which 4,810,667 in the year ended December 31, 2016.

16.4 Unvested share awards for the Supervisory Board

On an annual basis and until the year 2012, the Compensation Committee (on behalf of the Supervisory Board and with its approval) used to grant stock-based awards (the options to acquire common shares in the share capital of the Company) to the members and professionals of the Supervisory Board (“The Supervisory Board Plan”). The awards were granted at the nominal value of the share of €1.04 (exercise price of the option). The options granted under the Supervisory Board Plan vest and become exercisable immediately, while the shares resulting from these awards vest and therefore become available for trade evenly over three years (one third every year), with no market, performance or service conditions.

The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee:


Year of grant	Options granted and vested		Options waived at grant
2005		66,000		(15,000	)
2006		66,000		(15,000	)
2007		165,000		(22,500	)
2008		165,000		(22,500	)
2009		165,000		(7,500	)
2010		172,500		(7,500	)
2011		172,500		(30,000	)
2012		180,000		(22,500	)
2013		No options granted
2014		No options granted
2015		No options granted
2016		No options granted

A summary of the options’ activity by plan for the years ended December 31, 2016 and December 31, 2015 is presented below:


Year of grant	Outstanding as of 31.12.2014		Exercised			Expired / Cancelled		Outstanding as of 31.12.2015		Exercised			Expired / Cancelled		Outstanding as of 31.12.2016		Shares corresponding to exercised option not yet available for trade as of 31.12.2016
2005		22,115		(22,115	)		—		—		—			—		—		—
2006		21,000		(18,000	)		—		3,000		(3,000	)		—		—		—
2007		46,500		(27,000	)		—		19,500		(12,000	)		—		7,500		—
2008		60,000		(21,000	)		—		39,000		(15,000	)		—		24,000		—
2009		75,000		(30,000	)		—		45,000		(10,000	)		—		35,000		—
2010		75,000		(30,000	)		—		45,000		—			—		45,000		—
2011		97,500		(15,000	)		—		82,500		(15,000	)		—		67,500		—
2012		102,500		(7,500	)		—		95,000		(7,500	)		—		87,500		—

The total intrinsic value of options exercised during the year 2016 amounted to less than $1 million compared to $1 million for the year 2015. The total intrinsic value of options outstanding as of December 31, 2016 amounted to $3 million.

At the Company’s Annual General Meeting of Shareholders held on 21 June 2013, it was resolved to abolish and terminate the stock-based compensation for the Supervisory Board members and professionals.

16.5 Unvested share awards for the employees

On an annual basis, the Compensation Committee (on behalf of the Supervisory Board and with its approval) grants stock-based awards to the senior executives along with selected employees (the “Employee Plan”). The awards are granted for services under the Employee Plan. There are two types of unvested shares: (1) shares granted to employees, which are subject only to service conditions and vest over the requisite service period, and (2) shares granted to senior executives, whose vesting is subject to performance conditions. For the plans 2013, 2014 and 2015, the performance conditions consisted of two external targets (sales evolution and operating income compared to a basket of competitors) weighting for two third of the total number of awards granted and of one internal target (cash flow compared to budget for the plans 2013 and 2014 and return on net assets compared to budget for the plan 2015), weighting for one third of the total number of awards granted. For the plan 2016, the performance conditions consisted of two external targets (sales evolution and operating income compared to a basket of competitors) weighting for 80% of the total number of awards granted and of two internal targets (days of sales outstanding compared to the budget and return on net assets compared to budget), weighting for 20% of the total number of awards granted. All the awards vest over a three year service period (32% as of the first anniversary of the grant, 32% as of the second anniversary of the grant and 36% as of the third anniversary of the grant). In addition, in 2013, 2014 and 2015 there was a Special Bonus granted to the Company’s CEO.

The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee:


Date of grant	Plan name	Number of shares granted		Number of shares waived		Number of shares lost on performance conditions
July 22, 2013	2013 CEO Special Bonus		63,848		—		—
July 22, 2014	2014 CEO Special Bonus		34,483		—		—
July 22, 2014	2014 Employee Plan		6,458,435		—		(1,939,222	)
December 18, 2014	2014 Employee Plan		500,775		—		(31,332	)
March 24, 2015	2015 CEO Special Bonus		53,369		—		—
July 27, 2015	2015 Employee Plan		6,591,200		—		(1,961,886	)
December 15, 2015	2015 Employee Plan		370,920		—		(29,078	)
July 26, 2016	2016 Employee Plan		6,621,100		—			⁽*⁾
December 19, 2016	2016 Employee Plan		376,800		—			⁽*⁾

(*)	As at December 31, 2016, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board.

A summary of the unvested share activity by plan for the year ended December 31, 2016 is presented below:


Unvested Shares	Unvested as at December 31, 2015		Granted		Forfeited / waived			Cancelled on failed vesting conditions			Vested			Unvested as at December 31, 2016
2013 CEO Special Bonus		28,378		—		—			—			(21,283	)		7,095
2013 Employee Plan		1,462,359		—		(9,767	)		—			(1,452,592	)		—
2014 CEO Special Bonus		22,989		—		—			—			(11,494	)		11,495
2014 Employee Plan		3,246,106		—		(35,574	)		—			(1,599,079	)		1,611,453
2015 CEO Special Bonus		—		53,369		—			—			(17,790	)		35,579
2015 Employee Plan		6,931,175		—		(63,228	)		(1,990,964	)		(1,706,244	)		3,170,739
2016 Employee Plan		—		6,997,900		(21,295	)		—			(2,185	)		6,974,420

Total		11,691,007		7,051,269		(129,864	)		(1,990,964	)		(4,810,667	)		11,810,781

The grant date fair value of unvested shares granted to the CEO under the 2013 CEO Special Bonus Plan was $9.35. On the 2013 CEO Special Bonus Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grant.

The grant date weighted average fair value of unvested shares granted to employees under the 2013 Employee Plan was $9.55. On April 28, 2014, the Compensation Committee approved the statement that one performance condition was fully met. Consequently, the compensation expense recorded on the 2013 Employee Plan reflects the statement that one third of the awards granted will fully vest, as far as the service condition is met.

The grant date fair value of unvested shares granted to the CEO under the 2014 CEO Special Bonus Plan was $9.35. On the 2014 CEO Special Bonus Plan, the fair value of the unvested shares granted reflected the market price of the shares at the date of the grant.

The grant date weighted average fair value of unvested shares granted to employees under the 2014 Employee Plan was $9.23. On March 24, 2015, the Compensation Committee approved the statement that with respect to the shares subject to performance conditions, one performance condition was fully met. Consequently, the compensation expense recorded on the 2014 Employee Plan reflects the statement that – for the portion of shares subject to performance conditions – one third of the awards granted will fully vest, as far as the service condition is met.

The grant date fair value of unvested shares granted to employees under the 2015 Employee Plan was $7.62. On April 26, 2016, the Compensation Committee approved the statement that with respect to the shares subject to performance conditions, one performance condition was fully met. Consequently, the compensation expense recorded on the 2015 Employee Plan reflects the statement that – for the portion of shares subject to performance conditions – one third of the awards granted will fully vest, as far as the service condition is met.

The grant date weighted average fair value of unvested shares granted to employees under the 2016 Employee Plan was $6.37. Moreover, for the portion of the shares subject to performance conditions (3,074,320 shares) the Company estimates the number of awards expected to vest by assessing the probability of achieving the performance conditions. At December 31, 2016, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. However, the Company has estimated that 45% of the awards subject to performance conditions are expected to vest. Consequently, the compensation expense recorded for the 2016 Employee Plan reflects the vesting of 45% of the awards granted with performance conditions, subject to the service condition being met. The assumption of the expected number of awards to be vested upon achievement of the performance conditions is subject to changes based on the final measurement of the conditions, which is expected to occur in the first half of 2017.

The following table illustrates the classification of pre-payroll tax and social contribution stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2016, December 31, 2015 and December 31, 2014:


	December 31,		December 31,		December 31,
	2016		2015		2014
Cost of sales		7		7		6
Selling, general and administrative		17		17		16
Research and development		14		14		14

Total pre-payroll tax and social contribution compensation		38		38		36

The fair value of the shares vested in 2016 was $42 million compared to $35 million for 2015.

Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory was $2 million at each of December 31, 2016, 2015 and 2014. As of December 31, 2016 there was $35 million of total unrecognized compensation cost related to the grant of unvested shares, which is expected to be recognized over a weighted average period of approximately 9 months.

The total deferred income tax benefit recognized in the consolidated statements of income related to unvested share-based compensation expense amounted to $2 million, $2 million and $1 million for the years ended December 31, 2016, 2015 and 2014, respectively.

16.6 Accumulated other comprehensive income (loss) attributable to parent company stockholders

The table below details the changes in AOCI attributable to the company’s stockholders by component, net of tax, for the years ended December 31, 2016, 2015 and 2014:


	Gains (Losses) on Cash Flow Hedges			Gains (Losses) on Available-For-Sale Securities		Defined Benefit Pension Plan Items			Foreign Currency Translation Adjustments (“CTA”)			Total
December 31, 2013		38			1		(100	)		1,085			1,024

Cumulative tax impact		(5	)		—		23			—			18

December 31, 2013, net of tax		33			1		(77	)		1,085			1,042

OCI before reclassifications		(116	)		1		(76	)		(272	)		(463	)
Amounts reclassified from AOCI		2			—		6			—			8
OCI for the year ended December 31, 2014		(114	)		1		(70	)		(272	)		(455	)
Cumulative tax impact		5			—		21			—			26
OCI for the year ended December 31, 2014, net of tax		(109	)		1		(49	)		(272	)		(429	)

December 31, 2014		(76	)		2		(170	)		813			569

Cumulative tax impact		—			—		44			—			44

December 31, 2014, net of tax		(76	)		2		(126	)		813			613

OCI before reclassifications		(117	)		—		(2	)		(202	)		(321	)
Amounts reclassified from AOCI		170			—		12			(10	)		172
OCI for the year ended December 31, 2015		53			—		10			(212	)		(149	)
Cumulative tax impact		—			—		(4	)		—			(4	)
OCI for the year ended December 31, 2015, net of tax		53			—		6			(212	)		(153	)

December 31, 2015		(23	)		2		(160	)		601			420

Cumulative tax impact		—			—		40			—			40

December 31, 2015, net of tax		(23	)		2		(120	)		601			460

OCI before reclassifications		(33	)		—		(25	)		(57	)		(115	)
Amounts reclassified from AOCI		9			—		15			—			24
OCI for the year ended December 31, 2016		(24	)		—		(10	)		(57	)		(91	)
Cumulative tax impact		—			—		2			—			2
OCI for the year ended December 31, 2016, net of tax		(24	)		—		(8	)		(57	)		(89	)

December 31, 2016		(47	)		2		(170	)		544			329

Cumulative tax impact		—			—		42			—			42

December 31, 2016, net of tax		(47	)		2		(128	)		544			371

Items reclassified out of Accumulated Other Comprehensive Income for the years ended December 31, 2016, 2015 and 2014 are listed in the table below:


Details about AOCI components	Amounts reclassified from AOCI in the year ended December 31, 2016			Amounts reclassified from AOCI in the year ended December 31, 2015			Amounts reclassified from AOCI in the year ended December 31, 2014			Affected line item in the statement where net income (loss) is presented
Gains (Losses) on Cash Flow Hedges
Foreign exchange derivative contracts		(7	)		(105	)		(1	)	Cost of sales
Foreign exchange derivative contracts		—			(14	)		(1	)	Selling, general and administrative
Foreign exchange derivative contracts		(2	)		(51	)		—		Research and development
		—			—			—		Income tax benefit (expense)

		(9	)		(170	)		(2	)	Net of tax

Defined Benefit Pension Plan Items
Amortization of actuarial gains (losses)		(1	)		—			—		Cost of sales
Amortization of actuarial gains (losses)		(8	)		(5	)		(1	)	Selling, general and administrative
Amortization of actuarial gains (losses)		(6	)		(6	)		(4	)	Research and development
Amortization of prior service cost		—			(1	)		(1	)	Research and development
		4			4			1		Income tax benefit (expense)

		(11	)		(8	)		(5	)	Net of tax

Foreign currency translation adjustment
Realized gain on disposal of investments		—			10			—		Income (loss) on equity-method investments
		—			—			—		Income tax benefit (expense)

		—			10			—		Net of tax

Total reclassifications for the year		(20	)		(168	)		(7	)

Attributable to noncontrolling interest		—			—			—


Attributable to the Company’s stockholders		(20	)		(168	)		(7	)

16.7 Dividends

The Annual General Meeting of Shareholders held on May 25, 2016, authorized the distribution of a cash dividend of $0.24 per outstanding share of the Company’s common stock, to be distributed in quarterly installments of $0.06 in each of the second, third and fourth quarters of 2016 and first quarter of 2017. $53 million corresponding to the first installment, $53 million corresponding to the second installment and $47 million corresponding to the third installment were paid during 2016. The amount of $59 million presented in the line “Dividends payable to stockholders” in the consolidated balance sheet as of December 31, 2016 is composed of the fourth installment of $53 million and the remaining portion of the third installment of $6 million, both to be paid in the first half of 2017.

The Annual General Meeting of Shareholders held on May 27, 2015 authorized the distribution of a cash dividend of US$0.40 per outstanding share of the Company’s common stock, to be distributed in quarterly installments of US$0.10 in each of the second, third and fourth quarters of 2015 and first quarter of 2016. $88 million corresponding to the first installment, $88 million corresponding to the second installment and $78 million corresponding to the third installment were paid during 2015. The remaining portion of $9 million related to the third installment and the fourth installment of $88 million were paid in the first half of 2016.

The Supervisory Board held on December 4, 2014 authorized the distribution of a semi-annual cash dividend per common share of $0.10 in the fourth quarter of 2014 and $0.10 in the first quarter of 2015, to be paid in December 2014 and March 2015, respectively. The first payment, totaling $87 million, was executed in December 2014 and January 2015. The second payment, totalling $87 million, was executed in March and April 2015.

The Annual General Meeting of Shareholders held on June 13, 2014 authorized the distribution of a semi-annual cash dividend per common share of $0.10 in the second quarter of 2014 and $0.10 in the third quarter of 2014, to be paid in June 2014 and September 2014, respectively. $89 million corresponding to the first distribution and $85 million as part of the second distribution were paid during the first nine months of 2014. The remaining second portion of dividends to be paid of $4 million was paid during the fourth quarter of 2014.

The Extraordinary General Meeting of Shareholders held on December 2, 2013 authorized the distribution of a semi-annual cash dividend per common share of $0.10 in the fourth quarter of 2013 and $0.10 in the first quarter of 2014, to be paid in December 2013 and March 2014, respectively. The first payment, totaling $89 million, was executed in December 2013. The remaining $0.10 per share cash dividend totaling $89 million was paid during the first half of 2014.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.4-08(e))
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

+ Details

Earnings per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings per Share

17.

EARNINGS PER SHARE

For the years ended December 31, 2016, 2015 and 2014, earnings per share (“EPS”) was calculated as follows:


	Year ended December 31, 2016		Year ended December 31, 2015		Year ended December 31, 2014
Basic EPS
Net income (loss) attributable to parent company		165		104		128
Weighted average shares outstanding		881,246,870		876,510,959		886,532,167
Basic EPS		0.19		0.12		0.14

Diluted EPS
Net income (loss) attributable to parent company adjusted		165		104		128

Weighted average shares outstanding		881,246,870		876,510,959		886,532,167
Dilutive effect of stock awards		5,003,573		4,043,813		3,278,537

Number of shares used in calculating diluted EPS		886,250,443		880,554,772		889,810,704

Diluted EPS		0.19		0.12		0.14

In 2016 and 2015, there were no outstanding stock-options which were anti-dilutive. In 2014, outstanding stock-options have included anti-dilutive shares totalling 4,300 shares.

The convertible bonds issued on July 3, 2014, as detailed in Note 14, had no impact on the diluted EPS computation as of 31 December 2016 since the contingently conversion features were out-of-the-money.

Other Income and Expenses, Net

12 Months Ended

Dec. 31, 2016

Other Income and Expenses [Abstract]

Other Income and Expenses, Net

18.

OTHER INCOME AND EXPENSES, NET

Other income and expenses, net consisted of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Research and development funding		94			144			231
Phase-out and start-up costs		(2	)		(5	)		(16	)
Exchange gain, net		5			2			4
Patent costs, net of reversal of unused provisions		(5	)		3			(28	)
Gain on sale of businesses and non-current assets		2			18			24
Other, net		5			2			(8	)

Total		99			164			207

The Company receives significant public funding from governmental agencies in several jurisdictions. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions have been met.

Phase-out costs are costs incurred during the closing stage of a Company’s manufacturing facility. They are treated in the same manner as start-up costs. Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six months after the fabrication line’s quality certification.

Exchange gains and losses, net represent the portion of exchange rate changes on transactions denominated in currencies other than an entity’s functional currency and the changes in fair value of trading derivative instruments which are not designated as hedge and which have a cash flow effect related to operating transactions, as described in Note 24.

Patent costs include legal and attorney fees and payment for claims, patent pre-litigation consultancy and legal fees. They are reported net of settlements, if any, which primarily include reimbursements of prior patent litigation costs.

In 2016, gain on sale of businesses and non-current assets is mostly related to the sale of a building in France. In 2015, it was related to the sale of non-strategic assets, while in 2014, it was mainly related to the sale of the Smart Connectivity Business (Display Port products).

Impairment, Restructuring Charges and Other Related Closure Costs

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Impairment, Restructuring Charges and Other Related Closure Costs

19.

IMPAIRMENT, RESTRUCTURING CHARGES AND OTHER RELATED CLOSURE COSTS

Impairment, restructuring charges and other related closure costs incurred in 2016, 2015 and 2014 are summarized as follows:


Year ended December 31, 2016	Impairment			Restructuring charges			Other related closure costs			Total impairment, restructuring charges and other related closure costs
Set-top Box restructuring plan		—			(74	)		(9	)		(83	)
EPS restructuring plan		—			(1	)		—			(1	)
$600-650 million net opex plan		—			—			(1	)		(1	)
Long-lived asset impairment charge		(8	)		—			—			(8	)

Total		(8	)		(75	)		(10	)		(93	)


Year ended December 31, 2015	Impairment			Restructuring charges			Other related closure costs			Total impairment, restructuring charges and other related closure costs
$600-650 million net opex plan		—			—			(2	)		(2	)
Manufacturing consolidation		—			(1	)		(10	)		(11	)
EPS restructuring plan		—			(36	)		—			(36	)
Long-lived asset impairment charge		(16	)		—			—			(16	)

Total		(16	)		(37	)		(12	)		(65	)


Year ended December 31, 2014	Impairment			Restructuring charges			Other related closure costs			Total impairment, restructuring charges and other related closure costs
$600-650 million net opex plan		—			(17	)		(7	)		(24	)
Manufacturing consolidation		—			(8	)		(4	)		(12	)
EPS restructuring plan		—			(16	)		(14	)		(30	)
Long-lived asset impairment charge		(24	)		—			—			(24	)

Total		(24	)		(41	)		(25	)		(90	)

Impairment charges

In 2016, the Company recorded impairment charges of $8 million, primarily consisting of $3 million relating to the reclassification of certain property, plant and equipment as Assets Held for Sale and $4 million for other acquired intangible assets for which there was no alternative future use, as detailed in Notes 10 and 9, respectively.

In 2015, the Company recorded impairment charges of $16 million, of which $13 million following the annual impairment test performed in the third quarter and $3 million for other acquired intangible assets for which there was no alternative future use.

In 2014, the Company recorded impairment charges of $24 million, of which $23 million on the former Digital Convergence Group – now included in Microcontrollers, and Digital ICs Group – dedicated intangible assets and $1 million on other intangible assets, as detailed in Note 9.

Restructuring charges and other related closure costs

The Company was engaged in 2016 in one major restructuring plan, the Set-top Box plan. In 2016, the Company announced its decision to cease the development of new platforms and standard products for set-top-box and home gateway products. This decision implied a global workforce review that may affect approximately 1,400 employees worldwide, which includes about 430 in France through a voluntary departure plan, about 670 in Asia and about 120 in the United States of America. The Company recorded $83 million of restructuring charges for this plan in 2016, of which $9 million related to contracts that will continue with no future economic benefits to the Company and $74 million related to employee ongoing termination benefits, primarily for employee termination benefits in France, in the United States and Asia.

In 2014, the Company committed to a plan affecting around 450 employees worldwide and targeting savings in the former Embedded Processing Solutions business (the “EPS restructuring plan”). The Company recorded $1 million of restructuring charges for this plan in 2016. In 2013, the Company committed to restructuring actions to reduce operating expenses, net of R&D grants to the level of $600 to $650 million on a quarterly basis (the “$600-650 million net opex plan”). The Company recorded $1 million of restructuring charges for this plan in 2016.

In July 2013, the Company announced that it would wind down certain 6-inch manufacturing lines, close its back-end plant in Longgang and consolidate back-end activities in China to Shenzhen (the “Manufacturing consolidation plan”). There was no charge recorded by the Company for this plan in 2016.

In 2015, the Company incurred restructuring charges and other related closure costs for $49 million corresponding to:

•

$2 million for the $600-650 million net opex plan corresponding to a change in estimates on a contract termination provision;

•

$11 million for the Manufacturing consolidation plan corresponding to $1 million for employee termination benefits and $10 million corresponding to a grant clawback pursuant to the closure of operations in Longgang, China;

•

$36 million for the EPS restructuring plan, net of adjustments for unused provision, corresponding primarily to employee voluntary termination benefits and including termination fees in connection with the exit from the IBM technology alliance and contract termination costs.

In 2014, the Company incurred restructuring charges and other related closure costs for $66 million corresponding to:

•

$24 million for the $600-650 million net opex plan corresponding to employee termination benefits, primarily in Europe, and contract termination costs;

•

$12 million for the Manufacturing consolidation plan corresponding to $8 million for employee termination benefits and $4 million of closure costs;

•

$30 million for the EPS restructuring plan relating to employee and contract termination costs

Changes to the restructuring provisions recorded on the consolidated balance sheets from December 31, 2014 to December 31, 2016 are summarized as follows:


	Set-top Box restructuring plan			$600-650 million net opex plan			Manufacturing consolidation			EPS restructuring plan			Other restructuring initiatives			Total
Provision as at December 31, 2014		—			11			5			15			11			42
Charges incurred in 2015		—			2			11			43			—			56
Adjustments for unused provisions		—			—			—			(7	)		—			(7	)
Amounts paid		—			(5	)		(5	)		(33	)		(2	)		(45	)
Receivables not collected upon contract termination		—			—			(4	)		—			—			(4	)
Longgang deconsolidation		—			—			(6	)		—			—			(6	)
Currency translation effect		—			(2	)		—			—			—			(2	)
Provision as at December 31, 2015		—			6			1			18			9			34
Charges incurred in 2016		83			1			—			1			—			85
Amounts paid		(46	)		(1	)		(1	)		(10	)		(1	)		(59	)
Liability settlement		—			—			—			—			(3	)		(3	)
Currency translation effect		—			(1	)		—			(1	)		(1	)		(3	)
Provision as at December 31, 2016		37			5			—			8			4			54

An amount of $49 million is expected to be paid within twelve months, as detailed in Note 13.

The Set-top Box restructuring plan is expected to result in a total charge of $170 million, of which $83 million was recorded during the year ended December 31, 2016. The plan will be substantially completed in 2017 in all locations except France.

The $600-650 million net opex plan resulted in a total charge of $115 million. The plan was substantially completed in 2014.

The Manufacturing consolidation plan resulted in a total charge of $31 million, excluding impairments. The plan was completed in 2015.

The EPS restructuring plan resulted in a total charge of $67 million. The plan was substantially completed in 2015.

In 2016, total amounts paid for restructuring and related closure costs amounted to $59 million. The total actual costs that the Company will incur may differ from these estimates based on the timing required to complete the restructuring plan, the number of people involved, the final agreed termination benefits and the costs associated with the transfer of equipment, products and processes.

Interest Expense, Net

12 Months Ended

Dec. 31, 2016

Banking and Thrift, Interest [Abstract]

Interest Expense, Net

20.

INTEREST EXPENSE, NET

Interest expense, net consisted of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Income		20			18			12
Expense		(40	)		(40	)		(30	)


Total		(20	)		(22	)		(18	)

Interest income is related to the cash and cash equivalents held by the Company. Interest expense recorded in 2016, 2015 and 2014 included respectively a charge of $25 million, $24 million and $12 million on the senior unsecured convertible bonds issued in July 2014, of which respectively $21 million, $20 million and $10 million was a non-cash interest expense resulting from the accretion of the discount on the liability component. Net interest includes also charges related to the banking fees and the sale of trade and other receivables.

No borrowing cost was capitalized in 2016, 2015 and 2014. Interest income on government Bonds and floating rate notes classified as available-for-sale marketable securities amounted to $6 million for the year ended December 31, 2016, $6 million for the year ended December 31, 2015 and $2 million for the year ended December 31, 2014.

Income Tax

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax

21.

INCOME TAX

Income (loss) before income tax is comprised of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Income (loss) recorded in The Netherlands		(10	)		(18	)		(9	)
Income (loss) from foreign operations		211			107			115


Income (loss) before income tax benefit (expense)		201			89			106

STMicroelectronics N.V. and its subsidiaries are individually liable for income taxes in their jurisdictions. Tax losses can only offset profits generated by the taxable entity incurring such loss.

Income tax benefit (expense) is comprised of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
The Netherlands Taxes – current		(2	)		5			—
Foreign taxes – current		(69	)		(43	)		(50	)

Total current taxes		(71	)		(38	)		(50	)

The Netherlands Taxes – deferred		—			—			—
Foreign taxes – deferred		40			59			73

Total deferred taxes		40			59			73

Income tax benefit (expense)		(31	)		21			23

Effective tax rate		15	%		-24	%		-21	%

The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2016, 2015 and 2014, and the effective income tax rate are the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014

Income tax benefit (expense) computed at statutory rate		(51	)		(23	)		(26	)
Non-deductible and non-taxable permanent differences, net		5			(18	)		8
Income (loss) on equity-method investments		2			—			(11	)
Valuation allowance adjustments		10			1			26
Current year credits		34			44			53
Other tax and credits		(34	)		(13	)		8
Benefits from tax holidays		49			42			65
Net impact of changes to uncertain tax positions		(22	)		8			(92	)
Earnings of subsidiaries taxed at different rates		(24	)		(20	)		(8	)

Income tax benefit (expense)		(31	)		21			23

The tax holidays represent a tax exemption period aimed to attract foreign technological investment in certain tax jurisdictions. The effect of the tax benefits, from tax holidays for countries which are profitable, on basic earnings per share was $0.05, $0.05 and $0.07 for the years ended December 31, 2016, 2015, and 2014, respectively. These agreements are present in various countries and include programs that reduce up to and including 100% of taxes in years affected by the agreements. The Company’s tax holidays expire at various dates through the year ending December 31, 2022. In certain countries, tax holidays can be renewed depending on the Company still meeting certain conditions at the date of expiration of the current tax holidays.

Deferred tax assets and liabilities consisted of the following:


	December 31, 2016			December 31, 2015
Tax loss carryforwards and investment credits		804			827
Less unrecognized tax benefit		(195	)		(180	)

Tax loss carryforwards net of unrecognized tax benefit		609			647
Inventory valuation		29			22
Impairment and restructuring charges		20			15
Fixed asset depreciation in arrears		34			44
Capitalized development costs		91			80
Receivables for government funding		7			5
Tax credits granted on past capital investments		1,165			1,156
Pension service costs		68			73
Commercial accruals		19			21
Other temporary differences		92			86

Total deferred tax assets		2,134			2,149
Valuation allowances		(1,577	)		(1,585	)

Deferred tax assets, net		557			564

Accelerated fixed asset depreciation		(10	)		(16	)
Acquired intangible assets		(8	)		(11	)
Advances of government funding		(16	)		(16	)
Other temporary differences		—			(8	)

Deferred tax liabilities		(34	)		(51	)

Net deferred income tax asset		523			513

For a particular tax-paying component of the Company and within a particular tax jurisdiction, all current deferred tax liabilities and assets are offset and presented as a single amount, similarly to non-current deferred tax liabilities and assets. The Company does not offset deferred tax liabilities and assets attributable to different tax-paying components or to different tax jurisdictions.

The net deferred tax assets are recorded in legal entities which have been historically profitable and are expected to be profitable in the next coming years.

As of December 31, 2016, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2017, as follows:


Year
2017			16
2018			89
2019			80
2020			16
2021			3
Thereafter			600

Total			804

The valuation allowance for a particular tax jurisdiction is allocated between current and non-current deferred tax assets for that jurisdiction on a pro rata basis. The “Tax credits granted on past capital investments” mainly related to a 2003 agreement granting the Company certain tax credits for capital investments purchased through the year ending December 31, 2006. Any unused tax credits granted under the agreement will be impacted by yearly by a legal inflationary index (currently -0.04% per annum). The credits may be utilized through 2020 or later depending on the Company meeting certain program criteria. In addition to this agreement, starting in 2007 the Company continues to receive tax credits on the yearly capital investments, which may be used to offset that year’s tax liabilities and increases by the legal inflationary rate. However, pursuant to the inability to utilize these credits currently and in future years, the Company did not recognize any deferred tax asset on such tax allowance. As a result, there is no financial impact to the net deferred tax assets of the Company.

The amounts of deferred tax benefit (expense) recorded as a component of other comprehensive income (loss) was $(1) million and $(3) million in 2016 and 2015, respectively. They were related primarily to the tax effects of the recognized unfunded status on defined benefits plan.

The cumulative amount of distributable earnings related to the Company’s investments in foreign subsidiaries and corporate joint ventures was $785 million and $626 million as at December 31, 2016 and December 31, 2015, respectively. Due to the Company’s legal and tax structure, with the parent company established in the Netherlands, there was no significant tax impact from the distribution of earnings from investments in foreign subsidiaries and corporate joint ventures. This is because there is no tax impact on dividends paid up to a Dutch holding company.

A reconciliation of 2016, 2015 and 2014 beginning and ending amounts of unrecognized tax benefits is as follows:


	December 31, 2016			December 31, 2015			December 31, 2014
Balance at beginning of year		226			313			255
Additions based on tax positions related to the current year		34			38			51
Additions for tax positions of prior years		1			—			43
Reduction for tax positions of prior years		(13	)		(48	)		(2	)
Settlements		—			(48	)
Prepayment		—			(3	)		(5	)
Reductions due to lapse of statute of limitations		(4	)		(1	)		—
Foreign currency translation		(6	)		(25	)		(29	)

Balance at end of year		238			226			313

At December 31, 2016 and 2015, $195 million and $180 million, respectively, of unrecognized tax benefits were classified as a reduction of deferred tax assets. It is reasonably possible that certain of the uncertain tax positions disclosed in the table above could increase within the next 12 months due to ongoing tax audits. The Company is not able to make an estimate of the range of the reasonably possible change.

Additionally, the Company elected to classify accrued interest and penalties related to uncertain tax positions as components of income tax expense in the consolidated statements of income, they were $1 million in 2016, $1 million in 2015, $27 million in 2014 and not material in the previous years. At December 31, 2016 and 2015, accrued interest and penalties amounted to $9 million.

The tax years that remain open for review in the Company’s major tax jurisdictions, including France, Italy, United States and India, are from 1996 to 2016.

Commitments

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

22.

COMMITMENTS

The Company’s commitments as of December 31, 2016 were as follows:


In millions of U.S. dollars	Total		2017		2018		2019		2020		2021		Thereafter
Operating leases		168		46		31		19		16		13		43
Purchase obligations		619		581		34		4		—		—		—
of which:
Equipment purchase		402		402		—		—		—		—		—
Foundry purchase		80		80		—		—		—		—		—
Software, design, technologies and licenses		137		99		34		4		—		—		—
Other obligations		406		248		90		47		9		5		7

Total		1,193		875		155		70		25		18		50

Operating leases are mainly related to building and equipment leases. The amount disclosed is composed of minimum payments for future leases from 2017 to 2021 and thereafter. The Company leases land, buildings, plants and equipment under operating leases that expire at various dates under non-cancellable lease agreements. Operating lease expense was $56 million for both the years ended December 31, 2016 and 2015 and $66 million for the year ended December 31, 2014.

Purchase obligations are primarily comprised of purchase commitments for equipment, for outsourced foundry wafers and for software licenses.

Other obligations primarily relate to firm contractual commitments with respect to partnership and cooperation agreements and other service agreements.

Contingencies, Claims and Legal Proceedings

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Contingencies, Claims and Legal Proceedings

23.

CONTINGENCIES, CLAIMS AND LEGAL PROCEEDINGS

The Company is subject to possible loss contingencies arising in the ordinary course of business. These include but are not limited to: warranty cost on the products of the Company, breach of contract claims, claims for unauthorized use of third-party intellectual property, tax claims beyond assessed uncertain tax positions as well as claims for environmental damages. In determining loss contingencies, the Company considers the likelihood of impairing an asset or the incurrence of a liability at the date of the consolidated financial statements as well as the ability to reasonably estimate the amount of such loss. The Company records a provision for a loss contingency when information available before the consolidated financial statements are issued or are available to be issued indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the consolidated financial statements and when the amount of loss can be reasonably estimated. The Company regularly re-evaluates claims to determine whether provisions need to be readjusted based on the most current information available to the Company. Changes in these evaluations could result in an adverse material impact on the Company’s results of operations, cash flows or its financial position for the period in which they occur.

The Company has received and may in the future receive communications alleging possible infringements of third party patents or other third party intellectual property rights. Furthermore, the Company from time to time enters into discussions regarding a broad patent cross license arrangement with other industry participants. There is no assurance that such discussions may be brought to a successful conclusion and result in the intended agreement. The Company may become involved in costly litigation brought against the Company regarding patents, mask works, copyrights, trademarks or trade secrets. In the event that the outcome of any litigation would be unfavorable to the Company, the Company may be required to take a license to third party patents and/or other intellectual property rights at economically unfavorable terms and conditions, and possibly pay damages for prior use and/or face an injunction, all of which individually or in the aggregate could have a material adverse effect on the Company’s results of operations, cash flows, financial position and/or ability to compete.

The Company is otherwise also involved in various lawsuits, claims, investigations and proceedings incidental to its business and operations.

The Company regularly evaluates claims and legal proceedings together with their related probable losses to determine whether they need to be adjusted based on the current information available to the Company. There can be no assurance that its recorded reserves will be sufficient to cover the extent of its potential liabilities. Legal costs associated with claims are expensed as incurred. In the event of litigation which is adversely determined with respect to the Company’s interests, or in the event the Company needs to change its evaluation of a potential third-party claim, based on new evidence or communications, a material adverse effect could impact its operations or financial condition at the time it were to materialize.

As of December 31, 2016, provisions for estimated probable losses with respect to claims and legal proceedings were not considered material.

Financial Instruments and Risk Management

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Financial Instruments and Risk Management

24.

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

24.1 Financial risk factors

The Company is exposed to changes in financial market conditions in the normal course of business due to its operations in different foreign currencies and its ongoing investing and financing activities. The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures.

Financial risk management is carried out by a central treasury department (Corporate Treasury). Additionally, a Treasury Committee, chaired by the CFO, steers treasury activities and ensures compliance with corporate policies. Treasury activities are thus regulated by the Company’s policies, which define procedures, objectives and controls. The policies focus on the management of financial risk in terms of exposure to market risk, credit risk and liquidity risk. Treasury controls are subject to internal audits. Most treasury activities are centralized, with any local treasury activities subject to oversight from Corporate Treasury. Corporate Treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, use of derivative financial instruments, and investments of excess liquidity. The majority of cash and cash equivalents is held in U.S. dollars and Euros and is placed with financial institutions rated at least a single “A” long-term rating from two of the major rating agencies, meaning at least A3 from Moody’s Investor Service and A- from Standard & Poor’s and Fitch Ratings, or better. These ratings are closely and continuously monitored in order to manage exposure to the counterparty’s risk. Hedging transactions are performed only to hedge exposures deriving from operating, investing and financing activities conducted in the normal course of business.

Market risk

Foreign exchange risk

The Company conducts its business on a global basis in various major international currencies. As a result, the Company is exposed to adverse movements in foreign currency exchange rates, primarily with respect to the Euro. Foreign exchange risk mainly arises from recognized assets and liabilities at the Company’s subsidiaries and future commercial transactions.

Management has set up a policy to require the Company’s subsidiaries to hedge their entire foreign exchange risk exposure with the Company through financial instruments transacted or overseen by Corporate Treasury. To manage their foreign exchange risk arising from foreign-currency-denominated assets and liabilities, subsidiaries use forward contracts and purchased currency options. Foreign exchange risk arises when recognized assets and liabilities are denominated in a currency that is not the entity’s functional currency. These instruments do not qualify as hedging instruments for accounting purposes. Forward contracts and currency options, including collars, are also used by the Company to reduce its exposure to U.S. dollar fluctuations in Euro-denominated forecasted intercompany transactions that cover a large part of its research and development, selling, general and administrative expenses as well as a portion of its front-end manufacturing costs of semi-finished goods. The Company also hedges through the use of currency forward contracts certain Singapore dollar-denominated manufacturing forecasted transactions. The derivative instruments used to hedge these forecasted transactions meet the criteria for designation as cash flow hedge. The hedged forecasted transactions have a high probability of occurring for hedge accounting purposes.

It is the Company’s policy to have the foreign exchange exposures in all the currencies hedged month by month against the monthly standard rate. At each month end, the forecasted flows for the coming month are hedged together with the fixing of the new standard rate. For this reason the hedging transactions will have an exchange rate very close to the standard rate at which the forecasted flows will be recorded on the following month. As such, the foreign exchange exposure of the Company, which consists in the balance sheet positions and other contractually agreed transactions, is always close to zero and any movement in the foreign exchange rates will not therefore influence the exchange effect on items of the consolidated statement of income. Any discrepancy from the forecasted values and the actual results is constantly monitored and prompt actions are taken, if needed.

Derivative Instruments Not Designated as a Hedge

The Company enters into foreign currency forward contracts to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies in the Company’s subsidiaries. These include receivables from international sales by various subsidiaries, payables for foreign currency-denominated purchases and certain other assets and liabilities arising from intercompany transactions.

The notional amount of these financial instruments totaled $375 million, $372 million and $286 million at December 31, 2016, 2015 and 2014, respectively. The principal currencies covered at the end of the year 2016 are the Euro, the Japanese yen, the Singapore dollar, the Indian rupee, the Swiss franc, the China Yuan Renminbi, the British pound and the South Korean won.

The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The risk of loss associated with purchased currency options is equal to the premium paid when the option is not exercised.

Foreign currency forward contracts not designated as cash flow hedge outstanding as of December 31, 2016 have remaining terms of 3 days to 254 days, maturing on average after 26 days.

Derivative Instruments Designated as a Hedge

To further reduce its exposure to U.S. dollar exchange rate fluctuations, the Company hedges through the use of currency forward contracts and currency options, including collars, certain Euro-denominated forecasted intercompany transactions that cover at year-end a large part of its research and development, selling, general and administrative expenses, as well as a portion of its front-end manufacturing costs of semi-finished goods within cost of sales. The Company also hedges through the use of currency forward contracts certain manufacturing transactions within cost of sales denominated in Singapore dollars.

The principles regulating the hedging strategy for derivatives designated as cash flow hedge are established as follows: (i) for R&D and corporate costs, up to 80% of the total forecasted transactions; (ii) for manufacturing costs, up to 70% of the total forecasted transactions. In order to follow a dynamic hedge strategy, the Company may change the percentage of the designated hedged item within the limit of 100% of the forecasted transaction. The maximum length of time over which the Company could hedge its exposure to the variability of cash flows for forecasted transactions is 24 months.

For the year ended December 31, 2016, the Company recorded an increase in cost of sales of $7 million and an increase in operating expenses of $2 million, related to the realized losses incurred on such hedged transactions. For the year ended December 31, 2015, the Company recorded an increase in cost of sales of $105 million and an increase in operating expenses of $65 million, related to the realized losses incurred on such hedged transactions. For the year ended December 31, 2014, the Company recorded an increase in cost of sales of $1 million and an increase in operating expenses of $1 million, related to the realized losses incurred on such hedged transactions. No significant ineffective portion of the hedge was recorded on the line “Other income and expenses, net” of the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014.

The notional amount of foreign currency forward contracts and currency options, including collars, designated as cash flow hedge totaled $1,370 million, $1,449 million and $1,386 million at December 31, 2016, 2015 and 2014, respectively. The forecasted transactions hedged at December 31, 2016 were determined to have a high probability of occurring.

As of December 31, 2016, $47 million of deferred losses on derivative instruments included in “Accumulated other comprehensive income (loss)” were expected to be reclassified as earnings during the next 12 months based on the monthly forecasted research and development expenses, corporate costs and semi-finished manufacturing costs. No amount was reclassified as “Other income and expenses, net” into the consolidated statement of income from “Accumulated other comprehensive income (loss)” in the consolidated statement of equity. Foreign currency forward contracts, currency options and collars designated as cash flow hedge outstanding as of December 31, 2016 have remaining terms of 4 days to 19 months, maturing on average after 153 days.

As at December 31, 2016, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated and Singapore dollar-denominated forecasted transactions:


In millions of Euros	Notional amount for hedge on forecasted R&D and other operating expenses		Notional amount for hedge on forecasted manufacturing costs

Forward contracts		237		347
Currency collars		248		387

In millions of Singapore dollars	Notional amount for hedge on forecasted R&D and other operating expenses		Notional amount for hedge on forecasted manufacturing costs

Forward contracts		—		123

Cash flow and fair value interest rate risk

The Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk.

The Company analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. The Company invests primarily on a short-term basis and as such the Company’s liquidity is invested in floating interest rate instruments. As a consequence the Company is exposed to interest rate risk due to potential mismatch between the return on its short term floating interest rate investments and the portion of its long term debt issued at fixed rate.

Price risk

As part of its ongoing investing activities, the Company may be exposed to equity security price risk for investments in public entities. In order to hedge the exposure to this market risk, the Company may enter into certain derivative hedging transactions.

Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2016 and December 31, 2015 is presented in the table below:

As at December 31, 2016

As at December 31, 2015

Asset Derivatives

Balance sheet

location

Fair value

Balance sheet

location

Fair value

Derivatives designated as a hedge:

Foreign exchange forward contracts

Other current assets

Currency collars

Other non-current assets

—

Other non-current assets

Currency collars

Other current assets

—

Other current assets

Total derivatives designated as a hedge

Derivatives not designated as a hedge:

Foreign exchange forward contracts

Other current assets

Total derivatives not designated as a hedge:

Total Derivatives


	As at December 31, 2016				As at December 31, 2015
Liability Derivatives	Balance sheet location	Fair value			Balance sheet location	Fair value
Derivatives designated as a hedge:
Foreign exchange forward contracts	Other payables and accrued liabilities		(31	)	Other payables and accrued liabilities		(18	)
Currency collars	Other long-term liabilities		(1	)	Other long-term liabilities		—
Currency collars	Other payables and accrued liabilities		(11	)	Other payables and accrued liabilities		(6	)

Total derivatives designated as a hedge			(43	)			(24	)

Derivatives not designated as a hedge:
Foreign exchange forward contracts	Other payables and accrued liabilities		(2	)	Other payables and accrued liabilities		(1	)

Total derivatives not designated as a hedge:			(2	)			(1	)


Total Derivatives			(45	)			(25	)

The effect on the consolidated statements of income for the year ended December 31, 2016 and December 31, 2015 and on the “Accumulated other comprehensive income (loss)” (“AOCI”) as reported in the statements of equity as at December 31, 2016 and December 31, 2015 of derivative instruments designated as cash flow hedge is presented in the table below:


	Gain (loss) deferred in OCI on derivative						Location of gain (loss) reclassified from OCI into earnings	Gain (loss) reclassified from OCI into earnings
	December 31, 2016			December 31, 2015				December 31, 2016			December 31, 2015
Foreign exchange forward contracts		(24	)		(14	)	Cost of sales		(5	)		(63	)
Foreign exchange forward contracts		(2	)		(1	)	Selling, general and administrative		—			(8	)
Foreign exchange forward contracts		(8	)		(4	)	Research and development		(1	)		(29	)
Currency collars		(8	)		(3	)	Cost of sales		(2	)		(42	)
Currency collars		(1	)		—		Selling, general and administrative		—			(6	)
Currency collars		(4	)		(1	)	Research and development		(1	)		(22	)

Total		(47	)		(23	)			(9	)		(170	)

No significant ineffective portion of the cash flow hedge relationships was recorded in earnings for the years ended December 31, 2016 and December 31, 2015. No amount was excluded from effectiveness measurement on foreign exchange forward contracts and collars.

The effect on the consolidated statements of income for the year ended December 31, 2016 and December 31, 2015 of derivative instruments not designated as a hedge is presented in the table below:


	Location of gain recognized in earnings	Gain recognized in earnings
		December 31, 2016			December 31, 2015
Foreign exchange forward contracts	Other income and expenses, net		(3	)		11
Total			(3	)		11

The Company did not enter into any derivative containing significant credit-risk-related contingent features.

The Company entered into currency collars as combinations of two options, which are reported, for accounting purposes, on a net basis. The fair value of these collars represented as at December 31, 2016 liabilities totalling $12 million (a gross amount of $0 million recognized assets offset with a liability of $12 million). In addition, the Company entered into other derivative instruments, primarily forward contracts, which are governed by standard International Swaps and Derivatives Association (“ISDA”) agreements, which are not offset in the statement of financial position, and representing total assets of $2 million and liabilities of $33 million as at December 31, 2016.

Credit risk

The Company selects banks and/or financial institutions that operate with the group based on the criteria of long-term rating from at least two major Rating Agencies and keeping a maximum outstanding amount per instrument with each bank not to exceed 20% of the total.

The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal and external ratings in accordance with limits set by management. The utilization of credit limits is regularly monitored. Sales to customers are primarily settled in cash. At December 31, 2016 and 2015, no customer represented more than 10% of trade accounts receivable, net. Any remaining concentrations of credit risk with respect to trade receivables are limited due to the large number of customers and their dispersion across many geographic areas.

Liquidity risk

Prudent liquidity risk management includes maintaining sufficient cash equivalents and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. The Company’s objective is to maintain a significant cash position and a low debt-to-equity ratio, which ensure adequate financial flexibility. Liquidity management policy is to finance the Company’s investments with net cash provided from operating activities.

Management monitors rolling forecasts of the Company’s liquidity reserve on the basis of expected cash flows.

24.2 Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to create value for shareholders and benefits and returns for other stakeholders, as to maintain an optimal capital structure. In order to maintain or adjust the capital structure, the Company may review the amount of dividends paid to shareholders, return capital to shareholders, or issue new shares.

Consistent with others in the industry, the Company monitors capital on the basis of the net debt-to-equity ratio. This ratio is calculated as the net financial position of the Company, defined as the difference between total cash position (cash and cash equivalents, marketable securities – current and non-current – and current restricted cash, if any) net of total financial debt (bank overdrafts, if any, short-term borrowings and current portion of long-term debt as well as long-term debt), divided by total parent company stockholders’ equity.

24.3 Fair value measurement

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Company is the bid price. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using significant assumptions and estimates. When measuring fair value, the Company makes maximum use of market inputs and minimizes the use of unobservable inputs.

The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2016:


				Fair Value Measurements using
	December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)

Marketable securities – U.S. Treasury Bonds		335			335		—			—
Equity securities classified as available-for-sale		11			11		—			—
Equity securities classified as held-for-trading		8			8		—			—
Derivative instruments designated as cash flow hedge		1			—		1			—
Derivative instruments designated as cash flow hedge		(43	)		—		(43	)		—
Derivative instruments not designated as cash flow hedge		1			—		1			—
Derivative instruments not designated as cash flow hedge		(2	)		—		(2	)		—
Contingent consideration on business combinations		(12	)		—		—			(12	)

Total		299			354		(43	)		(12	)

The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2015:


				Fair Value Measurements using
	December 31, 2015			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Marketable securities – U.S. Treasury Bonds		335			335		—			—
Equity securities classified as available-for-sale		11			11		—			—
Equity securities classified as held-for-trading		8			8		—			—
Derivative instruments designated as cash flow hedge		5			—		5			—
Derivative instruments designated as cash flow hedge		(24	)		—		(24	)		—
Derivative instruments not designated as cash flow hedge		1			—		1			—
Derivative instruments not designated as cash flow hedge		(1	)		—		(1	)		—

Total		335			354		(19	)		—

For assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the reconciliation between January 1, 2016 and December 31, 2016 is presented as follows:


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2016		—
Contingent consideration on business combination		(12	)

December 31, 2016		(12	)

Amount of total losses for the period included in earnings attributable to assets still held at the reporting date		—

On July 28, 2016, the Company completed a transaction to acquire ams’ (SIX: AMS) assets and workforce related to Near-Field Communication (NFC) and Radio-frequency identification (RFID) Reader business, as described in Note 7. The purchase price consideration includes a cash payment of $78 million and the acquisition-date fair value of a sales earn-out of $12 million, which in any case will not exceed $37 million. The contingent consideration was measured at fair value as at December 31, 2016 based on a weighted-average probability projections of sales, discounted using a 1.8% cost of debt, which is the discount rate applicable to the transaction.

No asset was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as at December 31, 2015.

The liability component of the convertible bonds issued on July 3, 2014 was measured at initial recognition at fair value based on a discount rate adjustment technique (income approach), which corresponds to a Level 3 fair value hierarchy measurement. The fair value of the liability component at initial recognition totaled $878 million and was estimated by calculating the present value of cash flows using a discount rate of 2.40% and 3.22% (including 1% per annum nominal interest), respectively, on each tranche, as the market rates for similar instruments with no conversion rights. The liability component of the convertible bonds was subsequently reported at amortized cost. The liability component will be accreted to par value over the expected life of the instrument, five years and seven years respectively for each tranche.

The assets held for sale are reported at the lower of net book value and fair value less costs to sell. For fair value measurements using significant unobservable inputs (Level 3), fair value is estimated based on the estimated price that a market participant would pay on a sale transaction for these assets.

The business combination concluded on July 28, 2016 resulted in the recognition at fair value on a non-recurring basis upon acquisition of property, plant and equipment amounting to $2 million, technology amounting to $6 million, in-process R&D amounting to $40 million and a $42 million goodwill. The fair value of the recognized intangible assets was determined using the Multi-period Excess Earnings Method (“MEEM”)-approach combined with a Monte Carlo simulation of the acquired business to estimate the probable outcomes using a given number of iteration of the projections, which corresponds to a Level 3 fair value hierarchy.

The Company evaluated in 2016 and 2015 for impairment the aggregate carrying amount of cost-method investments. No impairment charge was recorded on these investments in 2016 and in 2015. Following identified changes in circumstances in 2014 evidencing that there may have been a significant adverse effect on the fair value of certain cost-method investments, $3 million of the aggregate carrying amount of these investments was evaluated for impairment in 2014, which generated an other-than-temporary impairment charge of $3 million, reported on the line “Gain (loss) on financial instruments, net” on the consolidated statement of income for the year ended December 31, 2014.

The following table includes additional fair value information on financial assets and liabilities as at December 31, 2016 and 2015:


	2016						2015
	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Cash equivalents⁽¹⁾		1		960		960		1,099		1,099

Long-term debt
– Bank loans (including current portion)		2		525		525		708		708
– Senior unsecured convertible bonds⁽²⁾		1		926		1,127		904		960

(1)	Cash equivalents primarily correspond to deposits at call with banks.

(2)

The carrying amount of the senior unsecured convertible bonds as reported above corresponds to the liability component only, since, at initial recognition, an amount of $121 million was recorded directly in shareholders’ equity as the value of the equity instrument embedded in the issued convertible bonds.

No securities were in an unrealized loss position as at December 31, 2016 and December 31, 2015.

The methodologies used to estimate fair value are as follows:

Debt securities classified as available-for-sale

The fair value of these debt securities is estimated based upon quoted market prices for identical instruments.

Foreign exchange forward contracts, currency options and collars

The fair value of these instruments is estimated based upon quoted market prices for similar instruments.

Marketable securities classified as available-for-sale

The fair values of these instruments are estimated based upon market prices for identical instruments.

Equity securities classified as available-for-sale

The fair values of these instruments are estimated based upon market prices for identical instruments.

Trading equity securities

The fair value of these instruments is estimated based upon quoted market prices for the same instruments.

Equity securities carried at cost

The non-recurring fair value measurement is based on the valuation of the underlying investments on a new round of third party financing or upon liquidation.

Long-term debt and current portion of long-term debt

The fair value of bank loans is determined by estimating future cash flows on a borrowing-by-borrowing basis and discounting these future cash flows using the Company’s incremental borrowing rates for similar types of borrowing arrangements.

The senior unsecured convertible bonds have been trading on the open market segment of the Frankfurt Stock Exchange since issuance on July 3, 2014. The fair value of these instruments is the observable price of the bonds on that market.

Cash and cash equivalents, accounts receivable, short-term borrowings, and accounts payable

The carrying amounts reflected in the consolidated financial statements are reasonable estimates of fair value due to the relatively short period of time between the origination of the instruments and their expected realization.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions

25.

RELATED PARTY TRANSACTIONS

Transactions with significant shareholders, their affiliates and other related parties were as follows:


	December 31, 2016		December 31, 2015		December 31, 2014
	December 31, 2016		December 31, 2015		December 31, 2014

Sales & other services		1		7		24
Other purchases		1		65		24
Accounts receivable		7		8		22
Accounts payable		51		61		56

For the years ended December 31, 2016, 2015 and 2014, the related party transactions were primarily with significant shareholders of the Company, or their subsidiaries and companies in which management of the Company perform similar policymaking functions. These include, but are not limited to: MicroOLED, Technicolor and Incard do Brazil. The related party transactions presented in the table above also include transactions between the Company and its equity-method investments as listed in Note 11.

The Company made no contribution for the year ended December 31, 2016 to the ST Foundation, a non-profit organization established to deliver and coordinate independent programs in line with its mission. For the years ended December 31, 2015 and December 31, 2014 this contribution amounted to $0.5 million. Certain members of the Foundation’s Board are senior members of the Company’s management.

Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

26.

SEGMENT INFORMATION

The Company operates in two business areas: Semiconductors and Subsystems.

In the Semiconductors business area, the Company designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, application-specific integrated circuits (“ASICs”), full custom devices and semi-custom devices and application-specific standard products (“ASSPs”) for analog, digital, and mixed-signal applications. In addition, the Company further participates in the manufacturing value chain of Smartcard products, which includes the production and sale of both silicon chips and Smartcards.

During the first quarter of 2016, the internal organization changed to align with the Company’s strategic focus on Smart Driving and on Internet of Things applications. Comparative numbers were restated accordingly.

The Company’s reportable segments are as follows:

•

Automotive and Discrete Group (ADG), comprised of all dedicated automotive ICs (both digital and analog), and discrete and power transistor products.

•

Analog and MEMS Group (AMG), comprised of low-power high-end analog ICs (both custom and general purpose) for all markets, smart power products for Industrial, Computer and Consumer markets, Touch Screen Controllers, Low Power Connectivity solutions (both wireline and wireless) for IoT, power conversion products, metering solutions for Smart Grid and all MEMS products, either sensors or actuators.

•

Microcontrollers and Digital ICs Group (MDG), comprised of general purpose and secure microcontrollers, EEPROM memories, and digital ASICs as well as restructured businesses such as Set-Top-box ICs or former ST-Ericsson products.

“Others” includes all the financial values related to the Imaging Product Division (including the sensors and modules from our Time of Flight technology), Subsystems and other products, as well as items not allocated to the segments such as impairment, restructuring charges and other related closure costs, unused capacity charges, strategic or special research and development programs and other minor unallocated expenses such as: certain corporate-level operating expenses, patent claims and litigation, and other costs that are not allocated to the segments.

In the Subsystems business area, the Company designs, develops, manufactures and markets subsystems and modules for the telecommunications, automotive and industrial markets including mobile phone accessories, battery chargers, ISDN power supplies and in-vehicle equipment for electronic toll payment. Based on its immateriality to the business as a whole, the Subsystems business area does not meet the requirements for a reportable segment as defined in the U.S. GAAP guidance.

For the computation of the segments’ internal financial measurements, the Company uses certain internal rules of allocation for the costs not directly chargeable to the segments, including cost of sales, selling, general and administrative expenses and a part of research and development expenses. In compliance with the Company’s internal policies, certain costs are not allocated to the segments, including impairment, restructuring charges and other related closure costs, unused capacity charges, phase-out and start-up costs of certain manufacturing facilities, certain one-time corporate items, strategic and special research and development programs or other corporate-sponsored initiatives, including certain corporate-level operating expenses and certain other miscellaneous charges. In addition, depreciation and amortization expense is part of the manufacturing costs allocated to the segments and is neither identified as part of the inventory variation nor as part of the unused capacity charges; therefore, it cannot be isolated in the costs of goods sold. Finally, R&D grants are allocated to the segments proportionally to the incurred R&D expenses on the sponsored projects.

Wafer costs are allocated to the segments based on actual cost. From time to time, with respect to specific technologies, wafer costs are allocated to segments based on market price.

The following tables present the Company’s consolidated net revenues and consolidated operating income by reportable segment.


	December 31, 2016		December 31, 2015		December 31, 2014
Automotive and Discrete Group (ADG)		2,813		2,731		2,897
Analog and MEMS Group (AMG)		1,584		1,671		1,877
Microcontrollers and Digital ICs Group (MDG)		2,285		2,292		2,377
Others		291		203		253

Total consolidated net revenues		6,973		6,897		7,404

Operating income by reportable segment:


	December 31, 2016			December 31, 2015			December 31, 2014
Automotive and Discrete Group (ADG)		211			194			279
Analog and MEMS Group (AMG)		67			109			168
Microcontrollers and Digital ICs Group (MDG)		108			29			(14	)

Total operating income of product segments		386			332			433

Others⁽¹⁾		(172	)		(223	)		(265	)

Total consolidated operating income		214			109			168

(1)

Operating result of “Others” includes operating earnings of the Imaging Product Division (including the sensors and modules from our Time of Flight technology), Subsystems and other products, as well as items not allocated to the segments, such as impairment, restructuring charges and other related closure costs, unused capacity charges, strategic or special research and development programs and other minor unallocated expenses such as: certain corporate-level operating expenses, patent claims and litigation, and other costs that are not allocated to the segments.

Reconciliation of operating income of segments to the total operating income:


	December 31,			December 31,			December 31,
	2016			2015			2014

Total operating income of segments		386			332			433
Impairment, restructuring charges and other related closure costs		(93	)		(65	)		(90	)
Unallocated manufacturing results		(33	)		(69	)		(45	)
Operating results of other businesses		(21	)		(82	)		(100	)
Strategic and other research and development programs and other non-allocated provisions⁽¹⁾		(25	)		(7	)		(30	)

Total operating loss Others		(172	)		(223	)		(265	)

Total consolidated operating income (loss)		214			109			168

(1)	Includes unallocated income and expenses such as certain corporate-level operating expenses and other costs/income that are not allocated to the product segments.

The following is a summary of operations by entities located within the indicated geographic areas for 2016, 2015 and 2014. Net revenues represent sales to third parties from the country in which each entity is located. Long-lived assets consist of property, plant and equipment, net (PP&E, net). A significant portion of property, plant and equipment expenditures is attributable to front-end and back-end facilities, located in the different countries in which the Company operates. As such, the Company mainly allocates capital spending resources according to geographic areas rather than along product segment areas.

Net revenues


	December 31, 2016		December 31, 2015		December 31, 2014
The Netherlands		1,751		1,667		1,905
France		134		169		200
Italy		58		58		61
USA		990		1,039		1,003
Singapore		3,699		3,606		3,831
Japan		323		332		368
Other countries		18		26		36

Total		6,973		6,897		7,404

Property, plant and equipment


	December 31,		December 31,
	2016		2015

The Netherlands		462		383
France		520		584
Italy		445		496
Other European countries		84		108
USA		6		8
Singapore		277		276
Malaysia		166		170
Other countries		327		296

Total		2,287		2,321

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 10
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

STMICROELECTRONICS N.V.

VALUATION AND QUALIFYING ACCOUNTS


Valuation and qualifying accounts deducted from the related asset accounts	Balance at beginning of period		Translation adjustment			Charged to costs and expenses		Additions/ (Deductions)			Balance at end of period
	(Currency – millions of U.S. dollars)
2016
Accounts Receivable		7		—			3		2			12
Deferred Tax Assets		1,585		(4	)		13		(16	)		1,578

2015
Accounts Receivable		8		—			2		(3	)		7
Deferred Tax Assets		1,607		(28	)		24		(18	)		1,585

2014
Accounts Receivable		9		—			1		(2	)		8
Deferred Tax Assets		1,454		(30	)		201		(18	)		1,607

Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Principles of consolidation

2.1 – Principles of consolidation

Use of estimates

2.2 – Use of estimates

•

sales returns and allowances,

•

inventory obsolescence reserves and normal manufacturing capacity thresholds to determine costs capitalized in inventory,

•

recognition and measurement of loss contingencies,

•

valuation at fair value of assets acquired or sold, including intangibles, goodwill, investments and tangible assets,

•

estimated value of the consideration to be received and used as fair value for asset groups classified as assets held for sale and the assessment of probability of realizing the sale,

•

assessment of other-than-temporary impairment charges on financial assets, including equity-method investments,

•

recognition and measurement of restructuring charges and other related exit costs,

•

assumptions used in assessing the number of awards expected to vest on stock-based compensation plans,

•

assumptions used in calculating pension obligations and other long-term employee benefits, and

•

Foreign currency

2.3 – Foreign currency

For consolidation purposes, the results and financial position of the subsidiaries whose functional currency is different from the U.S. dollar are translated into the reporting currency as follows:

(a)

assets and liabilities for each consolidated balance sheet presented are translated at the closing exchange rate as of the balance sheet date;

(b)

income and expenses for each consolidated statement of income presented are translated at the average monthly exchange rate;

(c)

Cash and cash equivalents

2.4 – Cash and cash equivalents

Trade accounts receivable

2.5 – Trade accounts receivable

Inventories

2.6 – Inventories

Income taxes

2.7 – Income taxes

Assets held for sale

2.8 – Assets held for sale

Business combinations and goodwill

2.9 – Business combinations and goodwill

Intangible assets with finite useful lives

2.10 – Intangible assets with finite useful lives

Trademarks, technologies and licenses

Computer software

Property, plant and equipment

2.11 – Property, plant and equipment

Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows:



Buildings			33 years

Facilities and leasehold improvements			5-10 years

Machinery and equipment			3-10 years

Computer and R&D equipment			3-6 years

Other			2-5 years

Investments in equity securities

2.12 – Investments in equity securities

Provisions

2.13 – Provisions

Long-term debt

2.14 – Long-term debt

(a)

Convertible debt

(b)

Bank loans

(c)

Capital leases

Employee benefits

2.15 – Employee benefits

(a) Pension obligations

(b) Other post-employment obligations

(c) Termination benefits

(d) Profit-sharing and bonus plans

The Company recognizes a liability and an expense for bonuses and profit-sharing plans when it is contractually obliged or where there is a past practice that has created a present obligation.

(e) Other long-term employee benefits

(f) Share-based compensation

Share capital

2.16 – Share capital

Comprehensive income (loss)

2.17 – Comprehensive income (loss)

Revenue Recognition

2.18 – Revenue Recognition

Revenue is recognized as follows:

Net sales

Other revenues

Other revenues consist of license revenue, service revenue related to transferring licenses, patent royalty income, sale of scrap materials and manufacturing by-products.

Funding

Advertising costs

2.19 – Advertising costs

Research and development

2.20 – Research and development

Start-up and phase-out costs

2.21 – Start-up and phase-out costs

Financial assets

2.22 – Financial assets

Trading financial assets

Available-for-sale financial assets

Derivative financial instruments and hedging activities

2.23 – Derivative financial instruments and hedging activities

Derivative financial instruments classified as trading

Cash Flow Hedge

Recent accounting pronouncements

2.24 – Recent accounting pronouncements

(a)

Accounting pronouncements adopted in 2016

Amended accounting guidance effective in 2016 had no material impact on the Company’s financial position, results of operations and disclosures.

(b)

Accounting pronouncements expected to impact the Company’s operations that are not yet effective and have not been adopted early by the Company

Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Schedule of Property, Plant and Equipment Useful Lives

Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows:



Buildings			33 years

Facilities and leasehold improvements			5-10 years

Machinery and equipment			3-10 years

Computer and R&D equipment			3-6 years

Other			2-5 years

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Changes in Value of Marketable Securities Reported in Current Assets on Consolidated Balance Sheets

Changes in the value of marketable securities, as reported in current assets on the consolidated balance sheets as at December 31, 2016 and December 31, 2015 are detailed in the tables below:


	December 31, 2015		Purchase		Sale		Change in fair value included in OCI*		Change in fair value recognized in earnings		December 31, 2016
U.S. Treasury Bonds		335		—		—		—		—		335

Total		335		—		—		—		—		335

*	Other Comprehensive Income


	December 31, 2014		Purchase		Sale		Change in fair value included in OCI*		Change in fair value recognized in earnings		December 31, 2015
U.S. Treasury Bonds		334		—		—		1		—		335

Total		334		—		—		1		—		335

*	Other Comprehensive Income

Trade Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Trade Accounts Receivable, Net

Trade accounts receivable, net consisted of the following:


	December 31, 2016			December 31, 2015
Trade accounts receivable		951			827
Allowance for doubtful accounts		(12	)		(7	)

Total		939			820

Inventories (Tables)

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventories, Net of Reserve

Inventories, net of reserve, consisted of the following:


	December 31, 2016		December 31, 2015
Raw materials		81		74
Work-in-process		756		804
Finished products		336		373

Total		1,173		1,251

Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Other current assets consisted of the following:


	December 31, 2016		December 31, 2015
Receivables from government agencies		150		233
Taxes and other government receivables		39		36
Advances		28		26
Prepayments		47		56
Loans and deposits		9		9
Interest receivable		4		1
Derivative instruments		2		5
Other current assets		32		41

Total		311		407

Business Combination (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of Fair Value of Identifiable Assets and Assumed Liabilities

The fair value of the identifiable assets and assumed liabilities acquired from ams at acquisition date were as follows:


	Fair value recognized at acquisition date
Property, plant and equipment		2
Technology		6
In-process R&D		40
Goodwill		42

Total net assets at fair value		90

Purchase consideration		90

Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

Goodwill allocated to reportable segments as of December 31, 2016 and 2015 and changes in the carrying amount of goodwill during the years ended December 31, 2016 and 2015 are as follows:


	Automotive and Discrete Group (ADG)		Microcontrollers and Digital ICs Group (MDG)			Analog and MEMS Group (AMG)		Others		Total
December 31, 2014		—		80			2		—		82

Foreign currency translation		—		(6	)		—		—		(6	)

December 31, 2015		—		74			2		—		76

Business combination		—		42			—		—		42

Foreign currency translation		—		(2	)		—		—		(2	)

December 31, 2016		—		114			2		—		116

Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangible Assets

Other intangible assets consisted of the following:


December 31, 2016	Gross Cost		Accumulated Amortization			Net Cost
Technologies & licences		618		(534	)		84
Contractual customer relationships		4		(4	)		—
Purchased & internally developed software		407		(347	)		60
Construction in progress		51		—			51
Other intangible assets		65		(65	)		—

Total		1,145		(950	)		195


December 31, 2015	Gross Cost		Accumulated Amortization			Net Cost
Technologies & licences		593		(511	)		82
Contractual customer relationships		4		(4	)		—
Purchased & internally developed software		387		(321	)		66
Construction in progress		18		—			18
Other intangible assets		65		(65	)		—

Total		1,067		(901	)		166

Estimated Amortization Expense of Existing Intangible Assets

The estimated amortization expense of the existing intangible assets for the following years is:


Year
2017			72
2018			53
2019			36
2020			20
2021			9
Thereafter			5

Total			195

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment consisted of the following:


December 31, 2016	Gross Cost		Accumulated Depreciation			Net Cost
Land		73		—			73
Buildings		788		(412	)		376
Facilities & leasehold improvements		2,713		(2,474	)		239
Machinery and equipment		12,808		(11,415	)		1,393
Computer and R&D equipment		362		(324	)		38
Other tangible assets		105		(96	)		9
Construction in progress		159		—			159

Total		17,008		(14,721	)		2,287


December 31, 2015	Gross Cost		Accumulated Depreciation			Net Cost
Land		75		—			75
Buildings		806		(399	)		407
Facilities & leasehold improvements		2,746		(2,482	)		264
Machinery and equipment		12,885		(11,408	)		1,477
Computer and R&D equipment		377		(339	)		38
Other tangible assets		104		(99	)		5
Construction in progress		55		—			55

Total		17,048		(14,727	)		2,321

Long-Term Investments (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Long-Term Investments


	December 31, 2016		December 31, 2015
Equity-method investments		45		44
Cost-method investments		12		13

Total		57		57

Schedule of Equity-method Investments

Equity-method investments as at December 31, 2016 and December 31, 2015 were as follows:


	December 31, 2016					December 31, 2015
	Carrying value		Ownership percentage			Carrying value		Ownership percentage
ST-Ericsson SA, in liquidation		45		50.0	%		44		50.0	%

Total		45					44

Other Non-Current Assets (Tables)

12 Months Ended

Dec. 31, 2016

Investments, All Other Investments [Abstract]

Other Non-Current Assets

Other non-current assets consisted of the following:


	December 31, 2016		December 31, 2015
Available-for-sale equity securities		11		11
Trading equity securities		8		8
Long-term State receivables		388		403
Long-term receivables from third parties		1		1
Prepaid for pension		—		8
Deposits and other non-current assets		26		28


Total		434		459

Other Payables and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Other Payables and Accrued Liabilities

Other payables and accrued liabilities consisted of the following:


	December 31, 2016		December 31, 2015
Employee related liabilities		297		283
Employee compensated absences		111		104
Taxes other than income taxes		58		54
Advances		39		44
Payables to equity-method investments		49		49
Derivative instruments		44		25
Provision for restructuring		49		26
Defined benefit plans – current portion		9		8
Defined contribution plans – accrued benefits		16		16
Royalties		20		19
Others		58		75

Total		750		703

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consisted of the following:


	December 31, 2016			December 31, 2015
Funding program loans from European Investment Bank:
0.38% due 2016, floating interest rate at Libor + 0.052%		—			19
1.10% due 2016, floating interest rate at Libor + 0.477%		—			26
1.01% due 2016, floating interest rate at Libor + 0.373%		—			29
2.08% due 2020, floating interest rate at Libor + 1.199%		50			63
2.00% due 2020, floating interest rate at Libor + 1.056%		110			138
0.60% due 2020, floating interest rate at Euribor + 0.917%		53			68
1.79% due 2021, floating interest rate at Libor + 0.525%		150			180
1.86% due 2021, floating interest rate at Libor + 0.572%		144			173

Dual tranche senior unsecured convertible bonds
Zero-coupon, due 2019 (Tranche A)		564			550
1.0% due 2021 (Tranche B)		362			354

Other funding program loans:
0.32% (weighted average), due 2017-2023, fixed interest rate		14			4

Other long-term loans:
1.95% (weighted average), due 2017, fixed interest rate		1			4
0.82% (weighted average), due 2018, fixed interest rate		1			1
0.87% (weighted average), due 2020, fixed interest rate		2			2
Capital leases:
20.80% (weighted average), due 2020, fixed interest rate		0			1
Total long-term debt		1,451			1,612

Less current portion		(117	)		(191	)

Total long-term debt, less current portion		1,334			1,421

Long-Term Debt Denominated by Currencies

Long-term debt is denominated in the following currencies:


	December 31, 2016		December 31, 2015
U.S. dollar		1,380		1,533
Euro		71		79

Total		1,451		1,612

Total Long-Term Debt Outstanding Maturities

Aggregate future maturities of total long-term debt (including current portion) at redemption value are as follows:


	December 31,
	2016
2017		117
2018		115
2019		714
2020		114
2021		461
Thereafter		4

Total		1,525

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Post-Employment and Other Long-Term Employees Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Changes in Benefit Obligation and Plan Assets

The changes in benefit obligation and plan assets were as follows:


	Pension Benefits						Other Long-Term Benefits
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Change in benefit obligation:

Benefit obligation at beginning of year		816			863			54			65
Service cost		27			28			3			5
Interest cost		25			25			2			2
Employee contributions		7			5			—			—
Benefits paid		(27	)		(27	)		(5	)		(11	)
Effect of curtailment		(6	)		(3	)		(1	)		(1	)
Effect of settlement		(10	)		(10	)		—			—
Actuarial (gain) loss		36			(21	)		—			—
Plan amendment		—			(2	)		—			—
Foreign currency translation adjustment		(43	)		(42	)		(1	)		(6	)

Benefit obligation at end of year		825			816			52			54


Change in plan assets:

Plan assets at fair value at beginning of year		473			480			—			—
Actual return on plan assets		31			(3	)		—			—
Employer contributions		27			28			—			—
Employee contributions		7			5			—			—
Benefits paid		(18	)		(17	)		—			—
Effect of settlement		(10	)		(10	)		—			—
Foreign currency translation adjustments		(33	)		(10	)		—			—

Plan assets at fair value at end of year		477			473			—			—


Funded status		(348	)		(343	)		(52	)		(54	)

Net amount recognized in the balance sheet consisted of the following:
	Pension Benefits						Other Long-Term Benefits
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Non-current assets		—			8			—			—
Current liabilities		(9	)		(8	)		(3	)		(3	)
Long-term liabilities		(339	)		(343	)		(49	)		(51	)

Net amount recognized		(348	)		(343	)		(52	)		(54	)

Accumulated Other Comprehensive Income (Loss) Before Tax Effects

The components of accumulated other comprehensive income (loss) before tax effects were as follows:


	Actuarial (gains)/losses			Prior service cost			Total
Other comprehensive loss as at December 31, 2014		152			7			159

Net amount generated/arising in current year		3			(2	)		1
Amortization		(11	)		(1	)		(12	)
Foreign currency translation adjustment		(7	)		(1	)		(8	)

Other comprehensive loss as at December 31, 2015		137			3			140

Net amount generated/arising in current year		25			—			25
Amortization		(14	)		(1	)		(15	)

Foreign currency translation adjustment		(9	)		—			(9	)

Other comprehensive loss as at December 31, 2016		139			2			141

Schedule of Accumulated Benefit Obligations

The accumulated benefit obligations were as follows:

Pension Benefits

Other Long-Term Benefits

December 31,
2016

December 31,
2015

December 31,
2016

December 31,
2015

Accumulated benefit obligations

762

720

Components of Net Periodic Benefit Cost

The components of the net periodic benefit cost included the following:


	Pension Benefits									Other Long-term Benefits
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014			Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Service cost		27			28			27			3			5			7
Interest cost		25			25			28			2			2			2
Expected return on plan assets		(20	)		(22	)		(22	)		—			—			—
Amortization of actuarial net loss (gain)		8			7			3			—			—			2
Amortization of prior service cost		1			1			—			—			—			1
Effect of settlement		—			1			1			—			—			—
Effect of curtailment		—			—			—			(1	)		(1	)		—

Net periodic benefit cost		41			40			37			4			6			12

Weighted Average Assumptions Used in Determination of Benefit Obligation and Plan Assets

The weighted average assumptions used in the determination of the benefit obligation and the plan assets for the pension plans and the other long-term benefits were as follows:


Assumptions	2016			2015
Discount rate		2.57	%		3.19	%
Salary increase rate		2.74	%		3.07	%
Expected long-term rate of return on funds for the pension expense of the year		3.57	%		4.44	%

The weighted average assumptions used in the determination of the net periodic benefit cost for the pension plans and the other long-term benefits were as follows:


Assumptions	2016			2015			2014
Discount rate		3.19	%		3.03	%		3.83	%
Salary increase rate		3.07	%		2.65	%		2.82	%
Expected long-term rate of return on funds for the pension expense of the year		4.44	%		4.76	%		4.88	%

Pension Plan Asset Allocation

The Company’s pension plan asset allocation at December 31, 2016 and at December 31, 2015 is as follows:


	Percentage of Plan Assets at December
Asset Category	2016			2015
Cash and cash equivalents		2	%		3	%
Equity securities		29	%		27	%
Government debt securities		3	%		2	%
Corporate debt securities		26	%		26	%
Investments in funds^(a)		18	%		19	%
Real estate		2	%		2	%
Other (mainly insurance assets – contracts and reserves)		20	%		21	%

Total		100	%		100	%

(a)

Pension Plan Asset Allocation Including Fair-Value Measurements

The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2016 is as follows:


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents		11		11		—		—
Equity securities		137		6		131		—
Government debt securities		13		12		1		—
Corporate debt securities		125		4		121		—
Investment funds		84		6		78		—
Real estate		12		—		11		1
Other (mainly insurance assets – contracts and reserves)		95		—		—		95

TOTAL		477		39		342		96

The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2015 is as follows:


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents		13		13		—		—
Equity securities		128		5		123		—
Government debt securities		10		10		—		—
Corporate debt securities		123		4		119		—
Investment funds		87		5		82		—
Real estate		11		—		10		1
Other (mainly insurance assets – contracts and reserves)		101		—		—		101

TOTAL		473		37		334		102

Reconciliation for Plan Assets Measured at Fair Value Using Unobservable Inputs (Level 3)

For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2016 and December 31, 2016 is presented as follows:


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2016		102
Contributions (employer and employee)		16
Actual return on plan assets		(3	)
Benefits paid		(6	)
Settlements		(10	)
Foreign currency translation adjustment		(3	)

December 31, 2016		96

For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2015 and December 31, 2015 is presented as follows:


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2015		102
Contributions (employer and employee)		14
Actual return on plan assets		1
Benefits paid		(3	)
Assets sold during the year		(1	)
Settlements		(9	)
Foreign currency translation adjustment		(2	)

December 31, 2015		102

Estimated Future Benefit Payments

The Company’s estimated future benefit payments as of December 31, 2016 are as follows:


Years	Pension Benefits		Other Long-term Benefits
2017		36		3
2018		22		3
2019		32		5
2020		29		7
2021		36		3
From 2022 to 2026		233		27

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

Classification of Pre-Payroll Tax and Social Contribution Stock-Based Compensation Expense Included in Consolidated Statements of Income


	December 31,		December 31,		December 31,
	2016		2015		2014
Cost of sales		7		7		6
Selling, general and administrative		17		17		16
Research and development		14		14		14

Total pre-payroll tax and social contribution compensation		38		38		36

Changes in AOCI Attributable to Stockholders

The table below details the changes in AOCI attributable to the company’s stockholders by component, net of tax, for the years ended December 31, 2016, 2015 and 2014:


	Gains (Losses) on Cash Flow Hedges			Gains (Losses) on Available-For-Sale Securities		Defined Benefit Pension Plan Items			Foreign Currency Translation Adjustments (“CTA”)			Total
December 31, 2013		38			1		(100	)		1,085			1,024

Cumulative tax impact		(5	)		—		23			—			18

December 31, 2013, net of tax		33			1		(77	)		1,085			1,042

OCI before reclassifications		(116	)		1		(76	)		(272	)		(463	)
Amounts reclassified from AOCI		2			—		6			—			8
OCI for the year ended December 31, 2014		(114	)		1		(70	)		(272	)		(455	)
Cumulative tax impact		5			—		21			—			26
OCI for the year ended December 31, 2014, net of tax		(109	)		1		(49	)		(272	)		(429	)

December 31, 2014		(76	)		2		(170	)		813			569

Cumulative tax impact		—			—		44			—			44

December 31, 2014, net of tax		(76	)		2		(126	)		813			613

OCI before reclassifications		(117	)		—		(2	)		(202	)		(321	)
Amounts reclassified from AOCI		170			—		12			(10	)		172
OCI for the year ended December 31, 2015		53			—		10			(212	)		(149	)
Cumulative tax impact		—			—		(4	)		—			(4	)
OCI for the year ended December 31, 2015, net of tax		53			—		6			(212	)		(153	)

December 31, 2015		(23	)		2		(160	)		601			420

Cumulative tax impact		—			—		40			—			40

December 31, 2015, net of tax		(23	)		2		(120	)		601			460

OCI before reclassifications		(33	)		—		(25	)		(57	)		(115	)
Amounts reclassified from AOCI		9			—		15			—			24
OCI for the year ended December 31, 2016		(24	)		—		(10	)		(57	)		(91	)
Cumulative tax impact		—			—		2			—			2
OCI for the year ended December 31, 2016, net of tax		(24	)		—		(8	)		(57	)		(89	)

December 31, 2016		(47	)		2		(170	)		544			329

Cumulative tax impact		—			—		42			—			42

December 31, 2016, net of tax		(47	)		2		(128	)		544			371

Schedule of Items Reclassified Out of Accumulated Other Comprehensive Income

Items reclassified out of Accumulated Other Comprehensive Income for the years ended December 31, 2016, 2015 and 2014 are listed in the table below:


Details about AOCI components	Amounts reclassified from AOCI in the year ended December 31, 2016			Amounts reclassified from AOCI in the year ended December 31, 2015			Amounts reclassified from AOCI in the year ended December 31, 2014			Affected line item in the statement where net income (loss) is presented
Gains (Losses) on Cash Flow Hedges
Foreign exchange derivative contracts		(7	)		(105	)		(1	)	Cost of sales
Foreign exchange derivative contracts		—			(14	)		(1	)	Selling, general and administrative
Foreign exchange derivative contracts		(2	)		(51	)		—		Research and development
		—			—			—		Income tax benefit (expense)

		(9	)		(170	)		(2	)	Net of tax

Defined Benefit Pension Plan Items
Amortization of actuarial gains (losses)		(1	)		—			—		Cost of sales
Amortization of actuarial gains (losses)		(8	)		(5	)		(1	)	Selling, general and administrative
Amortization of actuarial gains (losses)		(6	)		(6	)		(4	)	Research and development
Amortization of prior service cost		—			(1	)		(1	)	Research and development
		4			4			1		Income tax benefit (expense)

		(11	)		(8	)		(5	)	Net of tax

Foreign currency translation adjustment
Realized gain on disposal of investments		—			10			—		Income (loss) on equity-method investments
		—			—			—		Income tax benefit (expense)

		—			10			—		Net of tax

Total reclassifications for the year		(20	)		(168	)		(7	)

Attributable to noncontrolling interest		—			—			—


Attributable to the Company’s stockholders		(20	)		(168	)		(7	)

Supervisory Board [Member]

Summary of Grants Under Outstanding Stock Award Plans

The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee:


Year of grant	Options granted and vested		Options waived at grant
2005		66,000		(15,000	)
2006		66,000		(15,000	)
2007		165,000		(22,500	)
2008		165,000		(22,500	)
2009		165,000		(7,500	)
2010		172,500		(7,500	)
2011		172,500		(30,000	)
2012		180,000		(22,500	)
2013		No options granted
2014		No options granted
2015		No options granted
2016		No options granted

Summary of Nonvested Share Activity

A summary of the options’ activity by plan for the years ended December 31, 2016 and December 31, 2015 is presented below:


Year of grant	Outstanding as of 31.12.2014		Exercised			Expired / Cancelled		Outstanding as of 31.12.2015		Exercised			Expired / Cancelled		Outstanding as of 31.12.2016		Shares corresponding to exercised option not yet available for trade as of 31.12.2016
2005		22,115		(22,115	)		—		—		—			—		—		—
2006		21,000		(18,000	)		—		3,000		(3,000	)		—		—		—
2007		46,500		(27,000	)		—		19,500		(12,000	)		—		7,500		—
2008		60,000		(21,000	)		—		39,000		(15,000	)		—		24,000		—
2009		75,000		(30,000	)		—		45,000		(10,000	)		—		35,000		—
2010		75,000		(30,000	)		—		45,000		—			—		45,000		—
2011		97,500		(15,000	)		—		82,500		(15,000	)		—		67,500		—
2012		102,500		(7,500	)		—		95,000		(7,500	)		—		87,500		—

Employees [Member]

Summary of Grants Under Outstanding Stock Award Plans

The table below summarizes grants under the outstanding stock award plans as authorized by the Compensation Committee:


Date of grant	Plan name	Number of shares granted		Number of shares waived		Number of shares lost on performance conditions
July 22, 2013	2013 CEO Special Bonus		63,848		—		—
July 22, 2014	2014 CEO Special Bonus		34,483		—		—
July 22, 2014	2014 Employee Plan		6,458,435		—		(1,939,222	)
December 18, 2014	2014 Employee Plan		500,775		—		(31,332	)
March 24, 2015	2015 CEO Special Bonus		53,369		—		—
July 27, 2015	2015 Employee Plan		6,591,200		—		(1,961,886	)
December 15, 2015	2015 Employee Plan		370,920		—		(29,078	)
July 26, 2016	2016 Employee Plan		6,621,100		—			⁽*⁾
December 19, 2016	2016 Employee Plan		376,800		—			⁽*⁾

(*)	As at December 31, 2016, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board.

Summary of Nonvested Share Activity

A summary of the unvested share activity by plan for the year ended December 31, 2016 is presented below:


Unvested Shares	Unvested as at December 31, 2015		Granted		Forfeited / waived			Cancelled on failed vesting conditions			Vested			Unvested as at December 31, 2016
2013 CEO Special Bonus		28,378		—		—			—			(21,283	)		7,095
2013 Employee Plan		1,462,359		—		(9,767	)		—			(1,452,592	)		—
2014 CEO Special Bonus		22,989		—		—			—			(11,494	)		11,495
2014 Employee Plan		3,246,106		—		(35,574	)		—			(1,599,079	)		1,611,453
2015 CEO Special Bonus		—		53,369		—			—			(17,790	)		35,579
2015 Employee Plan		6,931,175		—		(63,228	)		(1,990,964	)		(1,706,244	)		3,170,739
2016 Employee Plan		—		6,997,900		(21,295	)		—			(2,185	)		6,974,420

Total		11,691,007		7,051,269		(129,864	)		(1,990,964	)		(4,810,667	)		11,810,781

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Summary of Earnings per Share ("EPS")

For the years ended December 31, 2016, 2015 and 2014, earnings per share (“EPS”) was calculated as follows:


	Year ended December 31, 2016		Year ended December 31, 2015		Year ended December 31, 2014
Basic EPS
Net income (loss) attributable to parent company		165		104		128
Weighted average shares outstanding		881,246,870		876,510,959		886,532,167
Basic EPS		0.19		0.12		0.14

Diluted EPS
Net income (loss) attributable to parent company adjusted		165		104		128

Weighted average shares outstanding		881,246,870		876,510,959		886,532,167
Dilutive effect of stock awards		5,003,573		4,043,813		3,278,537

Number of shares used in calculating diluted EPS		886,250,443		880,554,772		889,810,704

Diluted EPS		0.19		0.12		0.14

Other Income and Expenses, Net (Tables)

12 Months Ended

Dec. 31, 2016

Other Income and Expenses [Abstract]

Other Income and Expenses, Net

Other income and expenses, net consisted of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Research and development funding		94			144			231
Phase-out and start-up costs		(2	)		(5	)		(16	)
Exchange gain, net		5			2			4
Patent costs, net of reversal of unused provisions		(5	)		3			(28	)
Gain on sale of businesses and non-current assets		2			18			24
Other, net		5			2			(8	)

Total		99			164			207

Impairment, Restructuring Charges and Other Related Closure Costs (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Summary of Impairment, Restructuring Charges and Other Related Closure Costs

Impairment, restructuring charges and other related closure costs incurred in 2016, 2015 and 2014 are summarized as follows:


Year ended December 31, 2016	Impairment			Restructuring charges			Other related closure costs			Total impairment, restructuring charges and other related closure costs
Set-top Box restructuring plan		—			(74	)		(9	)		(83	)
EPS restructuring plan		—			(1	)		—			(1	)
$600-650 million net opex plan		—			—			(1	)		(1	)
Long-lived asset impairment charge		(8	)		—			—			(8	)

Total		(8	)		(75	)		(10	)		(93	)


Year ended December 31, 2015	Impairment			Restructuring charges			Other related closure costs			Total impairment, restructuring charges and other related closure costs
$600-650 million net opex plan		—			—			(2	)		(2	)
Manufacturing consolidation		—			(1	)		(10	)		(11	)
EPS restructuring plan		—			(36	)		—			(36	)
Long-lived asset impairment charge		(16	)		—			—			(16	)

Total		(16	)		(37	)		(12	)		(65	)


Year ended December 31, 2014	Impairment			Restructuring charges			Other related closure costs			Total impairment, restructuring charges and other related closure costs
$600-650 million net opex plan		—			(17	)		(7	)		(24	)
Manufacturing consolidation		—			(8	)		(4	)		(12	)
EPS restructuring plan		—			(16	)		(14	)		(30	)
Long-lived asset impairment charge		(24	)		—			—			(24	)

Total		(24	)		(41	)		(25	)		(90	)

Changes to Restructuring Provisions Recorded on Consolidated Balance Sheets

Changes to the restructuring provisions recorded on the consolidated balance sheets from December 31, 2014 to December 31, 2016 are summarized as follows:


	Set-top Box restructuring plan			$600-650 million net opex plan			Manufacturing consolidation			EPS restructuring plan			Other restructuring initiatives			Total
Provision as at December 31, 2014		—			11			5			15			11			42
Charges incurred in 2015		—			2			11			43			—			56
Adjustments for unused provisions		—			—			—			(7	)		—			(7	)
Amounts paid		—			(5	)		(5	)		(33	)		(2	)		(45	)
Receivables not collected upon contract termination		—			—			(4	)		—			—			(4	)
Longgang deconsolidation		—			—			(6	)		—			—			(6	)
Currency translation effect		—			(2	)		—			—			—			(2	)
Provision as at December 31, 2015		—			6			1			18			9			34
Charges incurred in 2016		83			1			—			1			—			85
Amounts paid		(46	)		(1	)		(1	)		(10	)		(1	)		(59	)
Liability settlement		—			—			—			—			(3	)		(3	)
Currency translation effect		—			(1	)		—			(1	)		(1	)		(3	)
Provision as at December 31, 2016		37			5			—			8			4			54

Interest Expense, Net (Tables)

12 Months Ended

Dec. 31, 2016

Banking and Thrift, Interest [Abstract]

Summary of Interest Expense, Net

Interest expense, net consisted of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Income		20			18			12
Expense		(40	)		(40	)		(30	)


Total		(20	)		(22	)		(18	)

Income Tax (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income (Loss) before Income Tax

Income (loss) before income tax is comprised of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
Income (loss) recorded in The Netherlands		(10	)		(18	)		(9	)
Income (loss) from foreign operations		211			107			115


Income (loss) before income tax benefit (expense)		201			89			106

Income Tax Benefit (Expense)

Income tax benefit (expense) is comprised of the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
The Netherlands Taxes – current		(2	)		5			—
Foreign taxes – current		(69	)		(43	)		(50	)

Total current taxes		(71	)		(38	)		(50	)

The Netherlands Taxes – deferred		—			—			—
Foreign taxes – deferred		40			59			73

Total deferred taxes		40			59			73

Income tax benefit (expense)		(31	)		21			23

Effective tax rate		15	%		-24	%		-21	%

Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate

The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.0% in 2016, 2015 and 2014, and the effective income tax rate are the following:


	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014

Income tax benefit (expense) computed at statutory rate		(51	)		(23	)		(26	)
Non-deductible and non-taxable permanent differences, net		5			(18	)		8
Income (loss) on equity-method investments		2			—			(11	)
Valuation allowance adjustments		10			1			26
Current year credits		34			44			53
Other tax and credits		(34	)		(13	)		8
Benefits from tax holidays		49			42			65
Net impact of changes to uncertain tax positions		(22	)		8			(92	)
Earnings of subsidiaries taxed at different rates		(24	)		(20	)		(8	)

Income tax benefit (expense)		(31	)		21			23

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:


	December 31, 2016			December 31, 2015
Tax loss carryforwards and investment credits		804			827
Less unrecognized tax benefit		(195	)		(180	)

Tax loss carryforwards net of unrecognized tax benefit		609			647
Inventory valuation		29			22
Impairment and restructuring charges		20			15
Fixed asset depreciation in arrears		34			44
Capitalized development costs		91			80
Receivables for government funding		7			5
Tax credits granted on past capital investments		1,165			1,156
Pension service costs		68			73
Commercial accruals		19			21
Other temporary differences		92			86

Total deferred tax assets		2,134			2,149
Valuation allowances		(1,577	)		(1,585	)

Deferred tax assets, net		557			564

Accelerated fixed asset depreciation		(10	)		(16	)
Acquired intangible assets		(8	)		(11	)
Advances of government funding		(16	)		(16	)
Other temporary differences		—			(8	)

Deferred tax liabilities		(34	)		(51	)

Net deferred income tax asset		523			513

Gross Deferred Tax Assets on Tax Loss Carryforwards and Investment Credits Expiration

As of December 31, 2016, the Company and its subsidiaries have gross deferred tax assets on tax loss carryforwards and investment credits that expire starting 2017, as follows:


Year
2017			16
2018			89
2019			80
2020			16
2021			3
Thereafter			600

Total			804

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of 2016, 2015 and 2014 beginning and ending amounts of unrecognized tax benefits is as follows:


	December 31, 2016			December 31, 2015			December 31, 2014
Balance at beginning of year		226			313			255
Additions based on tax positions related to the current year		34			38			51
Additions for tax positions of prior years		1			—			43
Reduction for tax positions of prior years		(13	)		(48	)		(2	)
Settlements		—			(48	)
Prepayment		—			(3	)		(5	)
Reductions due to lapse of statute of limitations		(4	)		(1	)		—
Foreign currency translation		(6	)		(25	)		(29	)

Balance at end of year		238			226			313

Commitments (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Company's Commitments

The Company’s commitments as of December 31, 2016 were as follows:


In millions of U.S. dollars	Total		2017		2018		2019		2020		2021		Thereafter
Operating leases		168		46		31		19		16		13		43
Purchase obligations		619		581		34		4		—		—		—
of which:
Equipment purchase		402		402		—		—		—		—		—
Foundry purchase		80		80		—		—		—		—		—
Software, design, technologies and licenses		137		99		34		4		—		—		—
Other obligations		406		248		90		47		9		5		7

Total		1,193		875		155		70		25		18		50

Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Notional Amounts of Outstanding Derivative Instruments

As at December 31, 2016, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated and Singapore dollar-denominated forecasted transactions:


In millions of Euros	Notional amount for hedge on forecasted R&D and other operating expenses		Notional amount for hedge on forecasted manufacturing costs

Forward contracts		237		347
Currency collars		248		387

In millions of Singapore dollars	Notional amount for hedge on forecasted R&D and other operating expenses		Notional amount for hedge on forecasted manufacturing costs

Forward contracts		—		123

Fair Value of Derivative Instruments

Information on fair value of derivative instruments and their location in the consolidated balance sheets as at December 31, 2016 and December 31, 2015 is presented in the table below:

As at December 31, 2016

As at December 31, 2015

Asset Derivatives

Balance sheet

location

Fair value

Balance sheet

location

Fair value

Derivatives designated as a hedge:

Foreign exchange forward contracts

Other current assets

Currency collars

Other non-current assets

—

Other non-current assets

Currency collars

Other current assets

—

Other current assets

Total derivatives designated as a hedge

Derivatives not designated as a hedge:

Foreign exchange forward contracts

Other current assets

Total derivatives not designated as a hedge:

Total Derivatives


	As at December 31, 2016				As at December 31, 2015
Liability Derivatives	Balance sheet location	Fair value			Balance sheet location	Fair value
Derivatives designated as a hedge:
Foreign exchange forward contracts	Other payables and accrued liabilities		(31	)	Other payables and accrued liabilities		(18	)
Currency collars	Other long-term liabilities		(1	)	Other long-term liabilities		—
Currency collars	Other payables and accrued liabilities		(11	)	Other payables and accrued liabilities		(6	)

Total derivatives designated as a hedge			(43	)			(24	)

Derivatives not designated as a hedge:
Foreign exchange forward contracts	Other payables and accrued liabilities		(2	)	Other payables and accrued liabilities		(1	)

Total derivatives not designated as a hedge:			(2	)			(1	)


Total Derivatives			(45	)			(25	)

Effect on Consolidated Statements of Income of Derivative Instruments


	Gain (loss) deferred in OCI on derivative						Location of gain (loss) reclassified from OCI into earnings	Gain (loss) reclassified from OCI into earnings
	December 31, 2016			December 31, 2015				December 31, 2016			December 31, 2015
Foreign exchange forward contracts		(24	)		(14	)	Cost of sales		(5	)		(63	)
Foreign exchange forward contracts		(2	)		(1	)	Selling, general and administrative		—			(8	)
Foreign exchange forward contracts		(8	)		(4	)	Research and development		(1	)		(29	)
Currency collars		(8	)		(3	)	Cost of sales		(2	)		(42	)
Currency collars		(1	)		—		Selling, general and administrative		—			(6	)
Currency collars		(4	)		(1	)	Research and development		(1	)		(22	)

Total		(47	)		(23	)			(9	)		(170	)

Effect on Consolidated Statements of Income of Derivative Instruments Not Designated as Hedge

The effect on the consolidated statements of income for the year ended December 31, 2016 and December 31, 2015 of derivative instruments not designated as a hedge is presented in the table below:


	Location of gain recognized in earnings	Gain recognized in earnings
		December 31, 2016			December 31, 2015
Foreign exchange forward contracts	Other income and expenses, net		(3	)		11
Total			(3	)		11

Schedule of Financial Assets (Liabilities) Measured at Fair Value on Recurring Basis

The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2016:


				Fair Value Measurements using
	December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)

Marketable securities – U.S. Treasury Bonds		335			335		—			—
Equity securities classified as available-for-sale		11			11		—			—
Equity securities classified as held-for-trading		8			8		—			—
Derivative instruments designated as cash flow hedge		1			—		1			—
Derivative instruments designated as cash flow hedge		(43	)		—		(43	)		—
Derivative instruments not designated as cash flow hedge		1			—		1			—
Derivative instruments not designated as cash flow hedge		(2	)		—		(2	)		—
Contingent consideration on business combinations		(12	)		—		—			(12	)

Total		299			354		(43	)		(12	)

The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December 31, 2015:


				Fair Value Measurements using
	December 31, 2015			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Marketable securities – U.S. Treasury Bonds		335			335		—			—
Equity securities classified as available-for-sale		11			11		—			—
Equity securities classified as held-for-trading		8			8		—			—
Derivative instruments designated as cash flow hedge		5			—		5			—
Derivative instruments designated as cash flow hedge		(24	)		—		(24	)		—
Derivative instruments not designated as cash flow hedge		1			—		1			—
Derivative instruments not designated as cash flow hedge		(1	)		—		(1	)		—

Total		335			354		(19	)		—

Schedule of Assets (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2016		—
Contingent consideration on business combination		(12	)

December 31, 2016		(12	)

Amount of total losses for the period included in earnings attributable to assets still held at the reporting date		—

Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost

The following table includes additional fair value information on financial assets and liabilities as at December 31, 2016 and 2015:


	2016						2015
	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Cash equivalents⁽¹⁾		1		960		960		1,099		1,099

Long-term debt
– Bank loans (including current portion)		2		525		525		708		708
– Senior unsecured convertible bonds⁽²⁾		1		926		1,127		904		960

(1)	Cash equivalents primarily correspond to deposits at call with banks.

(2)

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2016

Transactions with Significant Shareholders, their Affiliates and Other Related Parties

Transactions with significant shareholders, their affiliates and other related parties were as follows:


	December 31, 2016		December 31, 2015		December 31, 2014
	December 31, 2016		December 31, 2015		December 31, 2014

Sales & other services		1		7		24
Other purchases		1		65		24
Accounts receivable		7		8		22
Accounts payable		51		61		56

Segment Information (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Net Revenues by Product Segment and by Product Line

The following tables present the Company’s consolidated net revenues and consolidated operating income by reportable segment.


	December 31, 2016		December 31, 2015		December 31, 2014
Automotive and Discrete Group (ADG)		2,813		2,731		2,897
Analog and MEMS Group (AMG)		1,584		1,671		1,877
Microcontrollers and Digital ICs Group (MDG)		2,285		2,292		2,377
Others		291		203		253

Total consolidated net revenues		6,973		6,897		7,404

Operating Income by Reportable Segment

Operating income by reportable segment:


	December 31, 2016			December 31, 2015			December 31, 2014
Automotive and Discrete Group (ADG)		211			194			279
Analog and MEMS Group (AMG)		67			109			168
Microcontrollers and Digital ICs Group (MDG)		108			29			(14	)

Total operating income of product segments		386			332			433

Others⁽¹⁾		(172	)		(223	)		(265	)

Total consolidated operating income		214			109			168

(1)

Reconciliation of Operating Income of Segments to Total Operating Income

Reconciliation of operating income of segments to the total operating income:


	December 31,			December 31,			December 31,
	2016			2015			2014

Total operating income of segments		386			332			433
Impairment, restructuring charges and other related closure costs		(93	)		(65	)		(90	)
Unallocated manufacturing results		(33	)		(69	)		(45	)
Operating results of other businesses		(21	)		(82	)		(100	)
Strategic and other research and development programs and other non-allocated provisions⁽¹⁾		(25	)		(7	)		(30	)

Total operating loss Others		(172	)		(223	)		(265	)

Total consolidated operating income (loss)		214			109			168

(1)	Includes unallocated income and expenses such as certain corporate-level operating expenses and other costs/income that are not allocated to the product segments.

Net Revenues

Net revenues


	December 31, 2016		December 31, 2015		December 31, 2014
The Netherlands		1,751		1,667		1,905
France		134		169		200
Italy		58		58		61
USA		990		1,039		1,003
Singapore		3,699		3,606		3,831
Japan		323		332		368
Other countries		18		26		36

Total		6,973		6,897		7,404

Property, Plant & Equipment

Property, plant and equipment


	December 31,		December 31,
	2016		2015

The Netherlands		462		383
France		520		584
Italy		445		496
Other European countries		84		108
USA		6		8
Singapore		277		276
Malaysia		166		170
Other countries		327		296

Total		2,287		2,321

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary Of Accounting Policies [Line Items]
Cumulative probability threshold for realization of income tax benefits	50.00%
Minimum recognizable tax benefit	50.00%
Sustainability threshold for uncertain tax position	50.00%
Employees average service period to grant awards	3 years
Advertising expenses	$ 11	$ 9	$ 8
Minimum [Member]
Summary Of Accounting Policies [Line Items]
Equity investments, Ownership percentage	20.00%
Maximum [Member]
Summary Of Accounting Policies [Line Items]
Equity investments, Ownership percentage	50.00%
Trademarks and Licenses [Member] \| Minimum [Member]
Summary Of Accounting Policies [Line Items]
Estimated useful lives of intangible assets	3 years
Trademarks and Licenses [Member] \| Maximum [Member]
Summary Of Accounting Policies [Line Items]
Estimated useful lives of intangible assets	7 years
Purchased and Internally Developed Software [Member] \| Maximum [Member]
Summary Of Accounting Policies [Line Items]
Estimated useful lives of intangible assets	4 years

Accounting Policies - Schedule of Property, Plant and Equipment Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2016
Buildings [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	33 years
Facilities and Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	5 years
Facilities and Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	10 years
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	10 years
Computer and R&D Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	3 years
Computer and R&D Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	6 years
Other [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	2 years
Other [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of Property, Plant and Equipment, Average	5 years

Marketable Securities - Changes in Value of Marketable Securities Reported in Current Assets on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance	$ 335	$ 334
Purchase	0	0	$ (333)
Sale	0	0	58
Change in fair value included in OCI		1
Change in fair value recognized in earnings	0
Foreign exchange result through OCI		0
Ending Balance	335	335	334
U.S.Treasury Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance	335	334
Purchase	0	0
Sale	0	0
Change in fair value included in OCI		1
Change in fair value recognized in earnings	0
Foreign exchange result through OCI		0
Ending Balance	$ 335	$ 335	$ 334

Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Marketable securities	$ 335	$ 335	$ 334
U.S.Treasury Bonds [Member]
Financing Receivable, Recorded Investment [Line Items]
Marketable securities	$ 335	$ 335	$ 334
Weighted average maturity period	3 years 3 months 18 days
Aggregate amortized cost basis of securities	$ 332

Trade Accounts Receivable, Net - Trade Accounts Receivable, Net (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Trade accounts receivable	$ 951	$ 827
Allowance for doubtful accounts	(12)	(7)
Total	$ 939	$ 820

Trade Accounts Receivable, Net - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016 USD ($) Customer	Dec. 31, 2015 USD ($) Customer	Dec. 31, 2014 USD ($) Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable, bad debt expense	$ 3,000,000	$ 2,000,000
Receivables sold without recourse	0	48,000,000
Factoring transactions	$ 97,000,000	$ 195,000,000
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Share of companies in consolidated net revenues	10.00%	10.00%	10.00%
Number of customers \| Customer	0	0	0
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable, bad debt expense			$ 1,000,000

Inventories - Inventories, Net of Reserve (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 81	$ 74
Work-in-process	756	804
Finished products	336	373
Total	$ 1,173	$ 1,251

Other Current Assets - Other Current Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Receivables from government agencies	$ 150	$ 233
Taxes and other government receivables	39	36
Advances	28	26
Prepayments	47	56
Loans and deposits	9	9
Interest receivable	4	1
Derivative instruments	2	5
Other current assets	32	41
Total	$ 311	$ 407

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

Business Combination - Schedule of Fair Value of Identifiable Assets and Assumed Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Jul. 28, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Property, plant and equipment		$ 2
Goodwill	$ 116	42	$ 76	$ 82
Technology [Member]
Business Acquisition [Line Items]
Intangible assets		6
In-process R&D [Member]
Business Acquisition [Line Items]
Intangible assets		40
AMS [Member]
Business Acquisition [Line Items]
Property, plant and equipment		2
Goodwill		42
Total net assets at fair value		90
Purchase consideration		90
AMS [Member] \| Technology [Member]
Business Acquisition [Line Items]
Intangible assets		6
AMS [Member] \| In-process R&D [Member]
Business Acquisition [Line Items]
Intangible assets		$ 40

Goodwill - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 76	$ 82
Business combination	42
Foreign currency translation	(2)	(6)
Goodwill, Ending Balance	116	76
Microcontrollers and Digital ICs Group (MDG) [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	74	80
Business combination	42
Foreign currency translation	(2)	(6)
Goodwill, Ending Balance	114	74
Analog and MEMS Group (AMG) [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	2	2
Goodwill, Ending Balance	$ 2	$ 2

Goodwill - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
Goodwill - Additional Information (Detail) - USD ($)	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Line Items]
Impairment loss of goodwill	$ 0	$ 0	$ 0
Additions due to acquisitions			42,000,000
Accumulated impairment losses, net			102,000,000	$ 102,000,000
Microcontrollers and Digital ICs Group (MDG) [Member]
Goodwill [Line Items]
Additions due to acquisitions			42,000,000
Accumulated impairment losses, net			96,000,000	96,000,000
Microcontrollers and Digital ICs Group (MDG) [Member] \| NFC and RFID Reader Business [Member]
Goodwill [Line Items]
Additions due to acquisitions			42,000,000
Others [Member]
Goodwill [Line Items]
Accumulated impairment losses, net			$ 6,000,000	$ 6,000,000

Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Cost	$ 1,145	$ 1,067
Accumulated Amortization	(950)	(901)
Net Cost	195	166
Technologies & Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	618	593
Accumulated Amortization	(534)	(511)
Net Cost	84	82
Contractual Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	4	4
Accumulated Amortization	(4)	(4)
Purchased and Internally Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	407	387
Accumulated Amortization	(347)	(321)
Net Cost	60	66
In-process R&D [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	51	18
Net Cost	51	18
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Cost	65	65
Accumulated Amortization	$ (65)	$ (65)

Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 28, 2016
Finite-Lived Intangible Assets [Line Items]
Assets recognized during acquisition				$ 2
Amortization expense	$ 61	$ 60	$ 61
NFC and RFID Reader Business [Member] \| Construction in Progress [Member]
Finite-Lived Intangible Assets [Line Items]
Assets recognized during acquisition	40
Acquired Technologies [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment loss of intangible assets	4	10
Technologies and Licenses [Member] \| NFC and RFID Reader Business [Member]
Finite-Lived Intangible Assets [Line Items]
Assets recognized during acquisition	$ 6
Digital [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of digital long-lived assets		$ 6

Other Intangible Assets - Estimated Amortization Expense of Existing Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 72
2018	53
2019	36
2020	20
2021	9
Thereafter	5
Net Cost	$ 195	$ 166

Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Gross Cost	$ 17,008	$ 17,048
Accumulated Depreciation	(14,721)	(14,727)
Net Cost	2,287	2,321
Land [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	73	75
Net Cost	73	75
Buildings [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	788	806
Accumulated Depreciation	(412)	(399)
Net Cost	376	407
Facilities and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	2,713	2,746
Accumulated Depreciation	(2,474)	(2,482)
Net Cost	239	264
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	12,808	12,885
Accumulated Depreciation	(11,415)	(11,408)
Net Cost	1,393	1,477
Computer and R&D Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	362	377
Accumulated Depreciation	(324)	(339)
Net Cost	38	38
Other Tangible Assets [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	105	104
Accumulated Depreciation	(96)	(99)
Net Cost	9	5
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Gross Cost	159	55
Net Cost	$ 159	$ 55

Property, Plant and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 28, 2016
Property, Plant and Equipment [Line Items]
Assets recognised during acquisition				$ 2,000,000
Depreciation charge	$ 635,000,000	$ 676,000,000	$ 750,000,000
Capital investment funding	15,000,000	7,000,000
Reduction in depreciation charges due to public funding	6,000,000	4,000,000	4,000,000
Cash proceeds from sale of property, plant and equipment	4,000,000	62,000,000	9,000,000
Long lived assets held for sale impairment charge	3,000,000
Impairment of long-lived assets		0	0
Building and Machinery [Member] \| NFC and RFID Reader Business [Member]
Property, Plant and Equipment [Line Items]
Assets recognised during acquisition	2,000,000
Maximum [Member]
Property, Plant and Equipment [Line Items]
Net cost of assets under capital leases	$ 1,000,000	$ 1,000,000
Capital investment funding			$ 1,000,000

Long-Term Investments - Long-Term Investments (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Equity-method investments	$ 45	$ 44
Cost-method investments	12	13
Total	$ 57	$ 57

Long-Term Investments - Schedule of Equity-method Investments (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Equity investments, Carrying value	$ 45	$ 44
ST-Ericsson SA [Member]
Schedule of Equity Method Investments [Line Items]
Equity investments, Carrying value	$ 45	$ 44
Equity investments, Ownership percentage	50.00%	50.00%

Long-Term Investments - Additional Information (Detail) - USD ($)		12 Months Ended
	Sep. 09, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Feb. 03, 2009
Schedule of Equity Method Investments [Line Items]
Fair value of retained noncontrolling interest	$ 55,000,000
Funding commitment letters capped amount		$ 149,000,000
Income (loss) on equity-method investments		$ 7,000,000	$ 2,000,000	$ (43,000,000)
Liquidation date		Apr. 15, 2014
ST-Ericsson SA [Member]
Schedule of Equity Method Investments [Line Items]
Controlling share held by Ericsson					50.00%
Sale of Stock	1
Deconsolidated gain or loss	$ 0
Income (loss) on equity-method investments		$ 1,000,000	$ 1,000,000	$ 9,000,000

Other Non-Current Assets - Other Non-Current Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Available-for-sale equity securities	$ 11	$ 11
Trading equity securities	8	8
Long-term State receivables	388	403
Long-term receivables from third parties	1	1
Prepaid for pension		8
Deposits and other non-current assets	26	28
Total	$ 434	$ 459

Other Non-Current Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Non-current assets sold without recourse	$ 127,000,000	$ 96,000,000
Minimum [Member]
Long-term receivables expected collection period	1 year
Non-current assets sold , cost	$ 1,000,000	$ 1,000,000

Other Payables and Accrued Liabilities - Other Payables and Accrued Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Employee related liabilities	$ 297	$ 283
Employee compensated absences	111	104
Taxes other than income taxes	58	54
Advances	39	44
Payables to equity-method investments	49	49
Derivative instruments	44	25
Provision for restructuring	49	26
Defined benefit plans - current portion	9	8
Defined contribution plans - accrued benefits	16	16
Royalties	20	19
Others	58	75
Total	$ 750	$ 703

Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total long-term debt	$ 1,451	$ 1,612
Less current portion	(117)	(191)
Total long-term debt, less current portion	1,334	1,421
0.38% due 2016, floating interest rate at Libor + 0.052% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank		19
1.10% due 2016, floating interest rate at Libor + 0.477% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank		26
1.01% due 2016, floating interest rate at Libor + 0.373% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank		29
2.08% due 2020, floating interest rate at Libor + 1.199% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	50	63
2.00% due 2020, floating interest rate at Libor + 1.056% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	110	138
0.60% due 2020, floating interest rate at Euribor + 0.917% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	53	68
1.79% due 2021, floating interest rate at Libor + 0.525% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	150	180
1.86% due 2021, floating interest rate at Libor + 0.572% [Member]
Debt Instrument [Line Items]
Funding program loans from European Investment Bank	144	173
Zero Coupon due 2019 (Tranche A) [Member] \| Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Senior unsecured convertible bonds	564	550
1.0% due 2021 (Tranche B) [Member] \| Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Senior unsecured convertible bonds	362	354
0.32% (weighted average), due 2017-2023, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable	14	4
1.95% (weighted average), due 2017, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable	1	4
0.82% (weighted average), due 2018, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable	1	1
0.87% (weighted average), due 2020, fixed interest rate [Member]
Debt Instrument [Line Items]
Other Loans Payable	2	2
20.80% (weighted average), due 2020, fixed interest rate [Member]
Debt Instrument [Line Items]
Capital Lease	$ 0	$ 1

Long-Term Debt - Long-Term Debt (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2016	Jul. 03, 2014
0.38% due 2016, floating interest rate at Libor + 0.052% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2016
Interest rate	0.38%
Description of floating rate basis	Libor + 0.052%
Basis spread on floating rate	0.052%
1.10% due 2016, floating interest rate at Libor + 0.477% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2016
Interest rate	1.10%
Description of floating rate basis	Libor + 0.477%
Basis spread on floating rate	0.477%
1.01% due 2016, floating interest rate at Libor + 0.373% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2016
Interest rate	1.01%
Description of floating rate basis	Libor + 0.373%
Basis spread on floating rate	0.373%
2.08% due 2020, floating interest rate at Libor + 1.199% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2020
Interest rate	2.08%
Description of floating rate basis	Libor + 1.199%
Basis spread on floating rate	1.199%
2.00% due 2020, floating interest rate at Libor + 1.056% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2020
Interest rate	2.00%
Description of floating rate basis	Libor + 1.056%
Basis spread on floating rate	1.056%
0.60% due 2020, floating interest rate at Euribor + 0.917% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2020
Interest rate	0.60%
Description of floating rate basis	Euribor + 0.917%
Basis spread on floating rate	0.917%
1.79% due 2021, floating interest rate at Libor + 0.525% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2021
Interest rate	1.79%
Description of floating rate basis	Libor + 0.525%
Basis spread on floating rate	0.525%
1.86% due 2021, floating interest rate at Libor + 0.572% [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2021
Interest rate	1.86%
Description of floating rate basis	Libor + 0.572%
Basis spread on floating rate	0.572%
Zero Coupon due 2019 (Tranche A) [Member]
Debt Instrument [Line Items]
Interest rate	1.00%
Zero Coupon due 2019 (Tranche A) [Member] \| Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2019
Interest rate	0.00%	0.00%
1.0% due 2021 (Tranche B) [Member]
Debt Instrument [Line Items]
Interest rate	1.00%
1.0% due 2021 (Tranche B) [Member] \| Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2021
Interest rate	1.00%	1.00%
0.32% (weighted average), due 2017-2023, fixed interest rate [Member]
Debt Instrument [Line Items]
Interest rate	0.32%
0.32% (weighted average), due 2017-2023, fixed interest rate [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2017
0.32% (weighted average), due 2017-2023, fixed interest rate [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2023
1.95% (weighted average), due 2017, fixed interest rate [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2017
Interest rate	1.95%
0.82% (weighted average), due 2018, fixed interest rate [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2018
Interest rate	0.82%
0.87% (weighted average), due 2020, fixed interest rate [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2020
Interest rate	0.87%
20.80% (weighted average), due 2020, fixed interest rate [Member]
Debt Instrument [Line Items]
Long-term debt maturity date	2020
Interest rate	20.80%

Long-Term Debt - Long-Term Debt Denominated by Currencies (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 1,451	$ 1,612
U.S. dollar [Member]
Debt Instrument [Line Items]
Long-term debt	1,380	1,533
Euro [Member]
Debt Instrument [Line Items]
Long-term debt	$ 71	$ 79

Long-Term Debt - Additional Information (Detail) $ / shares in Units, € in Millions			12 Months Ended
	Oct. 03, 2016 USD ($) shares	Jul. 03, 2014 USD ($) $ / shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2016 EUR (€)	Mar. 31, 2013 EUR (€)	Mar. 12, 2013 USD ($)
Debt Instrument [Line Items]
Net proceeds from issuance of senior unsecured convertible bonds					$ 994,000,000
Conversion price adjusted	1.24%
Conversion features of the instruments value			$ 121,000,000	$ 0	$ 121,000,000
Allocated debt issuance costs		$ 1,000,000
Unamortized debt discount and issuance costs totalled			74,000,000	$ 95,000,000
Medium Term Credit Facilities [Member]
Debt Instrument [Line Items]
Unutilized committed medium term credit facilities			558,000,000
Multi Currency Loan to Support our Industrial and R&D Programs [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount \| €							€ 350
Amount outstanding			294,000,000
Line of credit amount withdrawn								$ 471,000,000
Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Fair value of liability component		878,000,000
Europe [Member] \| Multi Currency Loan to Support our Industrial and R&D Programs [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount \| €						€ 350
Amount outstanding			213,000,000
Line of credit amount withdrawn			$ 321,000,000			€ 100
Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Net proceeds from issuance of senior unsecured convertible bonds		$ 994,000,000
Zero Coupon due 2019 (Tranche A) [Member]
Debt Instrument [Line Items]
Interest rate			1.00%			1.00%
Senior unsecured convertible bonds conversion premium rate		30.00%
Debt discount rate			2.40%	2.40%
Zero Coupon due 2019 (Tranche A) [Member] \| Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount		$ 600,000,000
Long-term debt maturity date			2019
Interest rate		0.00%	0.00%			0.00%
1.0% due 2021 (Tranche B) [Member]
Debt Instrument [Line Items]
Debt instrument periodic payment			Semi-annually
Interest rate			1.00%			1.00%
Senior unsecured convertible bonds conversion premium rate		31.00%
Debt discount rate			3.22%	3.22%
1.0% due 2021 (Tranche B) [Member] \| Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount		$ 400,000,000
Long-term debt maturity date			2021
Interest rate		1.00%	1.00%			1.00%
Dual Tranche Senior Unsecured Convertible Bonds [Member] \| Senior Unsecured Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt instrument principal amount		$ 1,000,000,000
Senior unsecured convertible bonds conversion price \| $ / shares		$ 12
Tranche One [Member]
Debt Instrument [Line Items]
Debt conversion, converted instrument, shares issued (in shares) \| shares	16,491
Debt conversion, bond par value	$ 200,000
Tranche Two [Member]
Debt Instrument [Line Items]
Debt conversion, converted instrument, shares issued (in shares) \| shares	16,366
Debt conversion, bond par value	$ 994,000,000

Long-Term Debt - Total Long-Term Debt Outstanding Maturities (Detail) $ in Millions	Dec. 31, 2016 USD ($)
Debt Disclosure [Abstract]
2017	$ 117
2018	115
2019	714
2020	114
2021	461
Thereafter	4
Total	$ 1,525

Post-Employment and Other Long-Term Employees Benefits - Changes in Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Change in plan assets:
Plan assets at fair value at beginning of year	$ 473
Foreign currency translation adjustments		$ (1)
Plan assets at fair value at end of year	477	473
Net amount recognized in the balance sheet consisted of the following:
Non-current assets		8
Pension Benefits [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	816	863
Service cost	27	28	$ 27
Interest cost	25	25	28
Employee contributions	7	5
Benefits paid	(27)	(27)
Effect of curtailment	(6)	(3)
Effect of settlement	(10)	(10)
Actuarial (gain) loss	36	(21)
Plan amendment		(2)
Foreign currency translation adjustment	(43)	(42)
Benefit obligation at end of year	825	816	863
Change in plan assets:
Plan assets at fair value at beginning of year	473	480
Actual return on plan assets	31	(3)
Employer contributions	27	28
Employee contributions	7	5
Benefits paid	(18)	(17)
Effect of settlement	(10)	(10)
Foreign currency translation adjustments	(33)	(10)
Plan assets at fair value at end of year	477	473	480
Funded status	(348)	(343)
Net amount recognized in the balance sheet consisted of the following:
Non-current assets		8
Current liabilities	(9)	(8)
Long-term liabilities	(339)	(343)
Net amount recognized	(348)	(343)
Other Long-Term Benefit [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	54	65
Service cost	3	5	7
Interest cost	2	2	2
Benefits paid	(5)	(11)
Effect of curtailment	(1)	(1)
Foreign currency translation adjustment	(1)	(6)
Benefit obligation at end of year	52	54	$ 65
Change in plan assets:
Funded status	(52)	(54)
Net amount recognized in the balance sheet consisted of the following:
Current liabilities	(3)	(3)
Long-term liabilities	(49)	(51)
Net amount recognized	$ (52)	$ (54)

Post-Employment and Other Long-Term Employees Benefits - Accumulated Other Comprehensive Income (Loss) Before Tax Effects (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Other comprehensive loss, actuarial (gains)/losses, beginning balance	$ 137	$ 152
Net amount generated/arising in current year, actuarial (gains)/losses	25	3
Amortization, actuarial (gains)/losses	(14)	(11)
Foreign currency translation, actuarial (gains)/losses before tax	(9)	(7)
Other comprehensive loss, actuarial (gains)/losses, ending balance	139	137
Other comprehensive loss, prior service cost, beginning balance	3	7
Net amount generated/arising in current year, prior service cost		(2)
Amortization, prior service cost	(1)	(1)
Foreign currency translation adjustment, prior service cost		(1)
Other comprehensive loss, prior service cost, ending balance	2	3
Other comprehensive loss, Total, beginning balance	140	159
Net amount generated/arising in current year, Total	25	1
Amortization, Total	(15)	(12)
Foreign currency translation adjustment, Total	(9)	(8)
Other comprehensive loss, Total, ending balance	$ 141	$ 140

Post-Employment and Other Long-Term Employees Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Expected amortization of actuarial losses in year 2016	$ 9
Pension plans with accumulated benefit obligations in excess of plan assets, accumulated benefit obligation	738	$ 547
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets	443	284
Accrued benefits related to defined contribution pension plans	16	16
Annual cost of defined contribution plans	70	70	$ 81
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension plans with benefit obligations in excess of plan assets, benefit obligation	811	653
Pension plans with benefit obligations in excess of plan assets, fair value of plan assets	464	302
Employer contributions	27	$ 28
Expected contribution in cash	$ 28

Post-Employment and Other Long-Term Employees Benefits - Schedule of Accumulated Benefit Obligations (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligations	$ 762	$ 720
Other Long-Term Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligations	$ 41	$ 41

Post-Employment and Other Long-Term Employees Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 27	$ 28	$ 27
Interest cost	25	25	28
Expected return on plan assets	(20)	(22)	(22)
Amortization of actuarial net loss (gain)	8	7	3
Amortization of prior service cost	1	1
Effect of settlement		1	1
Net periodic benefit cost	41	40	37
Other Long-Term Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	3	5	7
Interest cost	2	2	2
Amortization of actuarial net loss (gain)			2
Amortization of prior service cost			1
Effect of curtailment	(1)	(1)
Net periodic benefit cost	$ 4	$ 6	$ 12

Post-Employment and Other Long-Term Employees Benefits - Weighted Average Assumptions Used in Determination of Benefit Obligation and Plan Assets (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Discount rate	2.57%	3.19%
Salary increase rate	2.74%	3.07%
Expected long-term rate of return on funds for the pension expense of the year	3.57%	4.44%
Net periodic benefit cost, Discount rate	3.19%	3.03%	3.83%
Net periodic benefit cost, Salary increase rate	3.07%	2.65%	2.82%
Net periodic benefit cost, Expected long-term rate of return on funds for the pension expense of the year	4.44%	4.76%	4.88%

Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation (Detail)	Dec. 31, 2016	Dec. 31, 2015
Allocation of pension plan assets	100.00%	100.00%
Cash and Cash Equivalents [Member]
Allocation of pension plan assets	2.00%	3.00%
Equity Securities [Member]
Allocation of pension plan assets	29.00%	27.00%
Government Debt Securities [Member]
Allocation of pension plan assets	3.00%	2.00%
Corporate Debt Securities [Member]
Allocation of pension plan assets	26.00%	26.00%
Investment Funds [Member]
Allocation of pension plan assets	18.00%	19.00%
Real Estate [Member]
Allocation of pension plan assets	2.00%	2.00%
Other (Mainly Insurance Assets - Contracts and Reserves) [Member]
Allocation of pension plan assets	20.00%	21.00%

Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation (Parenthetical) (Detail)	Dec. 31, 2016
Corporate Bonds [Member]
Investment in funds, percentage	55.00%
U.S.Treasury Bonds [Member]
Investment in funds, percentage	35.00%
Municipal Bonds [Member]
Investment in funds, percentage	5.00%

Post-Employment and Other Long-Term Employees Benefits - Pension Plan Asset Allocation Including Fair-Value Measurements (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 477	$ 473
Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	11	13
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	137	128
Government Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	13	10
Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	125	123
Investment Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	84	87
Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	12	11
Other (Mainly Insurance Assets - Contracts and Reserves) [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	95	101
Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	39	37
Fair Value, Inputs, Level 1 [Member] \| Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	11	13
Fair Value, Inputs, Level 1 [Member] \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	6	5
Fair Value, Inputs, Level 1 [Member] \| Government Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	12	10
Fair Value, Inputs, Level 1 [Member] \| Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	4	4
Fair Value, Inputs, Level 1 [Member] \| Investment Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	6	5
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	342	334
Fair Value, Inputs, Level 2 [Member] \| Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	131	123
Fair Value, Inputs, Level 2 [Member] \| Government Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	1
Fair Value, Inputs, Level 2 [Member] \| Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	121	119
Fair Value, Inputs, Level 2 [Member] \| Investment Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	78	82
Fair Value, Inputs, Level 2 [Member] \| Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	11	10
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	96	102	$ 102
Fair Value, Inputs, Level 3 [Member] \| Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	1	1
Fair Value, Inputs, Level 3 [Member] \| Other (Mainly Insurance Assets - Contracts and Reserves) [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 95	$ 101

Post-Employment and Other Long-Term Employees Benefits - Reconciliation for Plan Assets Measured at Fair Value Using Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value at beginning of year	$ 473
Foreign currency translation adjustment		$ (1)
Plan assets at fair value at end of year	477	473
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value at beginning of year	102	102
Contributions (employer and employee)	16	14
Actual return on plan assets	(3)	1
Benefits paid	(6)	(3)
Assets sold during the year		(1)
Settlements	(10)	(9)
Foreign currency translation adjustment	(3)	(2)
Plan assets at fair value at end of year	$ 96	$ 102

- Definition

Amount of plan assets that relate to an irrevocable action that relieves the employer, or plan, of primary responsibility for a benefit obligation and eliminates risks related to the obligation and the assets used to effect settlement. Includes, but is not limited to, lump-sum cash payments to plan participants in exchange for their rights to receive specified pension benefits and purchasing annuity contracts to cover vested benefits.

+ References + Details

Post-Employment and Other Long-Term Employees Benefits - Estimated Future Benefit Payments (Detail) $ in Millions	Dec. 31, 2016 USD ($)
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2017	$ 36
2018	22
2019	32
2020	29
2021	36
From 2022 to 2026	233
Other Long-Term Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
2017	3
2018	3
2019	5
2020	7
2021	3
From 2022 to 2026	$ 27

Shareholders' Equity - Additional Information (Detail)			1 Months Ended		3 Months Ended													6 Months Ended			12 Months Ended
Shareholders' Equity - Additional Information (Detail)	May 25, 2016 $ / shares	May 27, 2015 $ / shares	Oct. 31, 2016	Dec. 31, 2014 USD ($)	Mar. 31, 2017 $ / shares	Dec. 31, 2016 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) $ / shares	Jun. 30, 2016 USD ($) $ / shares	Mar. 31, 2016 $ / shares	Dec. 31, 2015 USD ($) $ / shares shares	Sep. 30, 2015 USD ($) $ / shares	Jun. 30, 2015 USD ($) $ / shares	Mar. 31, 2015 $ / shares	Dec. 31, 2014 USD ($) $ / shares	Sep. 30, 2014 USD ($) $ / shares	Jun. 30, 2014 USD ($) $ / shares	Dec. 31, 2013 USD ($) $ / shares	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($) $ / shares	Dec. 31, 2013 $ / shares	Dec. 31, 2008 USD ($) shares	Dec. 31, 2007	Dec. 31, 2016 EUR (€) € / shares shares	Dec. 31, 2015 € / shares	Jun. 13, 2014 shares	May 20, 2012	May 20, 2011	May 20, 2010	Jan. 22, 2007 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Authorized share capital \| €																											€ 1,810,000,000
Common stock, shares authorized						1,200,000,000				1,200,000,000											1,200,000,000	1,200,000,000					1,200,000,000
Preference stock, shares authorized						540,000,000				540,000,000											540,000,000	540,000,000					540,000,000						540,000,000
Common stock, nominal value \| € / shares																											€ 1.04	€ 1.04
Common stock, shares issued						911,030,420				910,967,920											911,030,420	910,967,920					911,030,420
Common stock, shares outstanding						883,410,506				878,537,339											883,410,506	878,537,339					883,410,506
Shares issued as a percentage of par value of the preference shares to be issued																																	25.00%
Preference shares outstanding maximum period																										2 years
Expiration extended period of options after date of grant,in years			10 years
Preference share issued						0				0											0	0					0
Repurchase of common shares authorized to repurchase \| $																									$ 30,000,000
Acquisition of shares																									29,520,220
Number of common shares authorized to repurchase																													20,000,000
Company owned treasury shares						27,619,914				32,430,581											27,619,914	32,430,581					27,619,914
Transfer of treasury shares to employees under the Company's share based remuneration programs						35,300,306															35,300,306						35,300,306
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					4,810,667
Total intrinsic value of options exercised \| $										$ 1,000,000												$ 1,000,000
Total intrinsic value of options outstanding \| $						$ 3,000,000															$ 3,000,000
Fair value of shares vested \| $																					42,000,000	35,000,000
Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory \| $				$ 2,000,000		2,000,000				$ 2,000,000				$ 2,000,000							2,000,000	2,000,000	$ 2,000,000
Total unrecognized compensation cost related to the grant of unvested shares \| $						$ 35,000,000															$ 35,000,000
Employee service share-based compensation, unvested awards, total compensation cost not yet recognized, period for recognition																					9 months
Deferred income tax benefit relating to unvested share based compensation expense \| $																					$ 2,000,000	2,000,000	1,000,000
Dividends, per share \| $ / shares	$ 0.24	$ 0.40				$ 0.06	$ 0.06	$ 0.06	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0.10
Dividend paid \| $				87,000,000		$ 47,000,000	$ 53,000,000	$ 53,000,000		$ 88,000,000	$ 78,000,000	$ 88,000,000		$ 4,000,000	$ 85,000,000	$ 89,000,000	$ 89,000,000		$ 88,000,000	$ 89,000,000
Dividends payable to stockholders \| $				$ 87,000,000		$ 59,000,000		$ 9,000,000		$ 97,000,000	$ 9,000,000			$ 87,000,000					$ 9,000,000		$ 59,000,000	$ 97,000,000	$ 87,000,000
Dividend payable date				2014-12		2016-12			2016-03	2015-12			2015-03	2014-12	2014-09	2014-06	2013-12			2014-06	2016-12	2015-12	2014-12	2013-12			2016-12
March 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends, per share \| $ / shares																								$ 0.10
Dividend payable date																	2014-03							2014-03
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised \| $						$ 1,000,000															$ 1,000,000
Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends, per share \| $ / shares					$ 0.06
Dividend payable date					2017-03
Scenario, Forecast [Member] \| Dividend Distribution Fourth Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid \| $																		$ 53,000,000
Scenario, Forecast [Member] \| Dividend Distribution Remaining Portion of Third Installment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend paid \| $																		$ 6,000,000
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					4,810,667
Vesting schedule for Supervisory Board																					One third of the total number of awards granted
Vesting period of awards																					3 years
2013 CEO Special Bonus [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					21,283
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan \| $ / shares																								$ 9.35
Employee Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan \| $ / shares																					$ 9.55
Number of shares to vest																					One third of the awards granted will fully vest
Employee Plan 2013 [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					1,452,592
2014 CEO Special Bonus [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					11,494
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan \| $ / shares																							$ 9.35
Employee Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan \| $ / shares																					$ 9.23
Employee Plan 2014 [Member] \| Performance Conditions [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares to vest																					One third of the awards granted will fully vest
Employee Plan 2014 [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					1,599,079
Supervisory Board 2012 Plan [Member] \| Supervisory Board [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards are granted at the nominal value of the share \| € / shares																											€ 1.04
Employee Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan \| $ / shares																					$ 7.62
Employee Plan 2015 [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					1,706,244
Employee Plan 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of nonvested shares granted to employees under Employee Plan \| $ / shares																					$ 6.37
Options expected to vest, options (in shares)						3,074,320															3,074,320						3,074,320
Options expected to vest, options percentage																					45.00%
Employee Plan 2016 [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transfer of treasury shares to employees under the Company's share based remuneration during the year																					2,185
Employee Plan 2009 [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sub plan for employees of Company's European subsidiaries for statutory payroll tax purposes nonvested shares vested over requisite service period																														36.00%	32.00%	32.00%
Sales Evolution and Operating Income Compared to a Basket of Competitors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share based payment award percentage of weight to total number of awards granted																					80.00%
Days of Sales Outstanding Compared to the Budget and Return on Net Assets Compared to Budget [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share based payment award percentage of weight to total number of awards granted																					20.00%

Shareholders' Equity - Summary of Grants under Outstanding Stock Award Plans (Detail)	12 Months Ended
	Dec. 31, 2016 shares
Employees [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Awards granted, Number of shares	7,051,269
Employees [Member] \| 2015 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Awards granted, Number of shares	53,369
Employees [Member] \| Employee Plan 2016 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Awards granted, Number of shares	6,997,900
2005 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2005
Options granted and vested	66,000
Options waived at grant	(15,000)
2006 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2006
Options granted and vested	66,000
Options waived at grant	(15,000)
2007 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2007
Options granted and vested	165,000
Options waived at grant	(22,500)
2008 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2008
Options granted and vested	165,000
Options waived at grant	(22,500)
2009 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2009
Options granted and vested	165,000
Options waived at grant	(7,500)
2010 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2010
Options granted and vested	172,500
Options waived at grant	(7,500)
2011 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2011
Options granted and vested	172,500
Options waived at grant	(30,000)
2012 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2012
Options granted and vested	180,000
Options waived at grant	(22,500)
2013 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2013
Options granted and vested	0
Options waived at grant	0
2014 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2014
Options granted and vested	0
Options waived at grant	0
2015 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2015
Options granted and vested	0
Options waived at grant	0
2016 [Member] \| Supervisory Board [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Year of grant	2016
Options granted and vested	0
Options waived at grant	0
July 22, 2013 [Member] \| Employees [Member] \| 2013 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 22, 2013
Awards granted, Number of shares	63,848
July 22, 2014 [Member] \| Employees [Member] \| 2014 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 22, 2014
Awards granted, Number of shares	34,483
July 22, 2014 [Member] \| Employees [Member] \| Employee Plan 2014 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 22, 2014
Awards granted, Number of shares	6,458,435
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(1,939,222)
December 18, 2014 [Member] \| Employees [Member] \| Employee Plan 2014 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Dec. 18, 2014
Awards granted, Number of shares	500,775
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(31,332)
March 24, 2015 [Member] \| Employees [Member] \| 2015 CEO Special Bonus [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Mar. 24, 2015
Awards granted, Number of shares	53,369
Twenty Seven July Two Thousand Fifteen [Member] \| Employees [Member] \| Employee Plan 2015 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 27, 2015
Awards granted, Number of shares	6,591,200
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(1,961,886)
Fifteen December Two Thousand Fifteen [Member] \| Employees [Member] \| Employee Plan 2015 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Dec. 15, 2015
Awards granted, Number of shares	370,920
Share based compensation arrangement by share based payment award, Number of shares lost on performance	(29,078)
July 26, 2016 [Member] \| Employees [Member] \| Employee Plan 2016 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Jul. 26, 2016
Awards granted, Number of shares	6,621,100
December 19, 2016 [Member] \| Employees [Member] \| Employee Plan 2016 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Grant date of Nonvested share	Dec. 19, 2016
Awards granted, Number of shares	376,800

Shareholders' Equity - Summary of Nonvested Share Activity (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vested, Number of Shares	(4,810,667)
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	11,691,007
Awards granted, Number of shares	7,051,269
Awards forfeited/waived, Number of Shares	(129,864)
Awards cancelled on failed vesting conditions, Number of Shares	(1,990,964)
Awards vested, Number of Shares	(4,810,667)
Ending Balance, Number of Shares	11,810,781	11,691,007
Employees [Member] \| 2013 CEO Special Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	28,378
Awards vested, Number of Shares	(21,283)
Ending Balance, Number of Shares	7,095	28,378
Employees [Member] \| Employee Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	1,462,359
Awards forfeited/waived, Number of Shares	(9,767)
Awards vested, Number of Shares	(1,452,592)
Ending Balance, Number of Shares		1,462,359
Employees [Member] \| 2014 CEO Special Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	22,989
Awards vested, Number of Shares	(11,494)
Ending Balance, Number of Shares	11,495	22,989
Employees [Member] \| Employee Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	3,246,106
Awards forfeited/waived, Number of Shares	(35,574)
Awards vested, Number of Shares	(1,599,079)
Ending Balance, Number of Shares	1,611,453	3,246,106
Employees [Member] \| 2015 CEO Special Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted, Number of shares	53,369
Awards vested, Number of Shares	(17,790)
Ending Balance, Number of Shares	35,579
Employees [Member] \| Employee Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	6,931,175
Awards forfeited/waived, Number of Shares	(63,228)
Awards cancelled on failed vesting conditions, Number of Shares	(1,990,964)
Awards vested, Number of Shares	(1,706,244)
Ending Balance, Number of Shares	3,170,739	6,931,175
Employees [Member] \| Employee Plan 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted, Number of shares	6,997,900
Awards forfeited/waived, Number of Shares	(21,295)
Awards vested, Number of Shares	(2,185)
Ending Balance, Number of Shares	6,974,420
Supervisory Board [Member] \| 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares		22,115
Year of grant	2005
Exercised		(22,115)
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0
Supervisory Board [Member] \| 2006 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	3,000	21,000
Year of grant	2006
Exercised	(3,000)	(18,000)
Ending Balance, Number of Shares		3,000
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0
Supervisory Board [Member] \| 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	19,500	46,500
Year of grant	2007
Exercised	(12,000)	(27,000)
Ending Balance, Number of Shares	7,500	19,500
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0
Supervisory Board [Member] \| 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	39,000	60,000
Year of grant	2008
Exercised	(15,000)	(21,000)
Ending Balance, Number of Shares	24,000	39,000
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0
Supervisory Board [Member] \| 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	45,000	75,000
Year of grant	2009
Exercised	(10,000)	(30,000)
Ending Balance, Number of Shares	35,000	45,000
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0
Supervisory Board [Member] \| 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	45,000	75,000
Year of grant	2010
Exercised		(30,000)
Ending Balance, Number of Shares	45,000	45,000
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0
Supervisory Board [Member] \| 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	82,500	97,500
Year of grant	2011
Exercised	(15,000)	(15,000)
Ending Balance, Number of Shares	67,500	82,500
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0
Supervisory Board [Member] \| 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Number of Shares	95,000	102,500
Year of grant	2012
Exercised	(7,500)	(7,500)
Ending Balance, Number of Shares	87,500	95,000
Shares corresponding to exercised option not yet available for trade as of 31.12.2015	0

Shareholders' Equity - Classification of Pre-Payroll Tax and Social Contribution Stock-Based Compensation Expense Included in Consolidated Statements of Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	$ 38	$ 38	$ 36
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	7	7	6
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	17	17	16
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total pre-payroll tax and social contribution compensation	$ 14	$ 14	$ 14

Shareholders' Equity - Changes in AOCI Attributable to Stockholders (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OCI before reclassifications	$ (115)	$ (321)	$ (463)
Amounts reclassified from AOCI	24	172	8
OCI Balance	(91)	(149)	(455)
Cumulative tax impact	2	(4)	26
OCI Balance, net of tax	(89)	(153)	(429)
Balance	329	420	569	$ 1,024
Cumulative tax impact	42	40	44	18
Balance, net of tax	371	460	613	1,042
Foreign Currency Translation Adjustments ("CTA") [Member]
OCI before reclassifications	(57)	(202)	(272)
Amounts reclassified from AOCI		(10)
OCI Balance	(57)	(212)	(272)
OCI Balance, net of tax	(57)	(212)	(272)
Balance	544	601	813	1,085
Balance, net of tax	544	601	813	1,085
Accumulated Defined Benefit Plan Items [Member]
OCI before reclassifications	(25)	(2)	(76)
Amounts reclassified from AOCI	15	12	6
OCI Balance	(10)	10	(70)
Cumulative tax impact	2	(4)	21
OCI Balance, net of tax	(8)	6	(49)
Balance	(170)	(160)	(170)	(100)
Cumulative tax impact	42	40	44	23
Balance, net of tax	(128)	(120)	(126)	(77)
Accumulated Net Gains (Losses) on Available-for-Sale Securities [Member]
OCI before reclassifications			1
OCI Balance			1
OCI Balance, net of tax			1
Balance	2	2	2	1
Balance, net of tax	2	2	2	1
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
OCI before reclassifications	(33)	(117)	(116)
Amounts reclassified from AOCI	9	170	2
OCI Balance	(24)	53	(114)
Cumulative tax impact			5
OCI Balance, net of tax	(24)	53	(109)
Balance	(47)	(23)	(76)	38
Cumulative tax impact				(5)
Balance, net of tax	$ (47)	$ (23)	$ (76)	$ 33

Shareholders' Equity - Schedule of Items Reclassified Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	$ (4,518)	$ (4,565)	$ (4,906)
Selling, general and administrative	(911)	(897)	(927)
Research and development	(1,336)	(1,425)	(1,520)
Income (loss) on equity-method investments	7	2	(43)
Income tax benefit (expense)	(31)	21	23
Net income	170	110	129
Attributable to noncontrolling interest	(5)	(6)	(1)
Attributable to the Company's stockholders	165	104	128
Reclassification Out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(20)	(168)	(7)
Attributable to noncontrolling interest	0	0	0
Attributable to the Company's stockholders	(20)	(168)	(7)
Reclassification Out of Accumulated Other Comprehensive Income [Member] \| Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(9)	(170)	(2)
Reclassification Out of Accumulated Other Comprehensive Income [Member] \| Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] \| Foreign Exchange Contract [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	(7)	(105)	(1)
Selling, general and administrative		(14)	(1)
Research and development	(2)	(51)
Reclassification Out of Accumulated Other Comprehensive Income [Member] \| Amortization of Actuarial Gains (Losses) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales	(1)
Selling, general and administrative	(8)	(5)	(1)
Research and development	(6)	(6)	(4)
Reclassification Out of Accumulated Other Comprehensive Income [Member] \| Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Research and development		(1)	(1)
Reclassification Out of Accumulated Other Comprehensive Income [Member] \| Accumulated Defined Benefit Plan Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit (expense)	4	4	1
Net income	$ (11)	(8)	$ (5)
Reclassification Out of Accumulated Other Comprehensive Income [Member] \| Foreign Currency Translation Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) on equity-method investments		10
Net income		$ 10

Earnings per Share - Summary of Earnings per Share ("EPS") (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic EPS
Net income (loss) attributable to parent company	$ 165	$ 104	$ 128
Weighted average shares outstanding	881,246,870	876,510,959	886,532,167
Basic EPS	$ 0.19	$ 0.12	$ 0.14
Diluted EPS
Net income (loss) attributable to parent company adjusted	$ 165	$ 104	$ 128
Weighted average shares outstanding	881,246,870	876,510,959	886,532,167
Dilutive effect of stock awards	5,003,573	4,043,813	3,278,537
Number of shares used in calculating diluted EPS	886,250,443	880,554,772	889,810,704
Diluted EPS	$ 0.19	$ 0.12	$ 0.14

Earnings per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Portion of anti-dilutive shares in outstanding stock options	0	0	4,300

Other Income and Expenses, Net - Other Income and Expenses, Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Income and Expenses [Abstract]
Research and development funding	$ 94	$ 144	$ 231
Phase-out and start-up costs	(2)	(5)	(16)
Exchange gain, net	5	2	4
Patent costs, net of reversal of unused provisions	(5)	3	(28)
Gain on sale of businesses and non-current assets	2	18	24
Other, net	5	2	(8)
Total	$ 99	$ 164	$ 207

Impairment, Restructuring Charges and Other Related Closure Costs - Summary of Impairment, Restructuring Charges and Other Related Closure Costs (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Impairment	$ (13)	$ (8)	$ (16)	$ (24)
Restructuring charges		(75)	(37)	(41)
Other related closure costs		(10)	(12)	(25)
Total impairment, restructuring charges and other related closure costs		(93)	(65)	(90)
Set-top Box Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		(74)
Other related closure costs		(9)
Total impairment, restructuring charges and other related closure costs		(83)
EPS Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		(1)	(36)	(16)
Other related closure costs				(14)
Total impairment, restructuring charges and other related closure costs		(1)	(36)	(30)
Long-lived Asset Impairment Charge [Member]
Restructuring Cost and Reserve [Line Items]
Impairment		(8)	(16)	(24)
Total impairment, restructuring charges and other related closure costs		(8)	(16)	(24)
$600-650 Million Net Opex Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges				(17)
Other related closure costs		(1)	(2)	(7)
Total impairment, restructuring charges and other related closure costs		$ (1)	(2)	(24)
Manufacturing Consolidation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			(1)	(8)
Other related closure costs			(10)	(4)
Total impairment, restructuring charges and other related closure costs			$ (11)	$ (12)

Impairment, Restructuring Charges and Other Related Closure Costs - Additional Information (Detail)	3 Months Ended	12 Months Ended
	Sep. 30, 2015 USD ($)	Dec. 31, 2016 USD ($) Employees	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($) Employees	Dec. 31, 2013 USD ($)
Restructuring Cost and Reserve [Line Items]
Impairment charges	$ 13,000,000	$ 8,000,000	$ 16,000,000	$ 24,000,000
Restructuring charges and other related closure costs			49,000,000	66,000,000
Expected payment		49,000,000	26,000,000
Restructuring Charges recorded		85,000,000	56,000,000
Restructuring charges and other related closure costs		59,000,000
Other Acquired Intangible Assets [Member]
Restructuring Cost and Reserve [Line Items]
Impairment charges		4,000,000	3,000,000
Long-lived Asset Impairment Charge [Member]
Restructuring Cost and Reserve [Line Items]
Impairment charges		3,000,000
Digital Convergence Group ("DCG") [Member] \| Dedicated Intangible Assets [Member]
Restructuring Cost and Reserve [Line Items]
Impairment charges				23,000,000
Digital Convergence Group ("DCG") [Member] \| Other Intangible Assets [Member]
Restructuring Cost and Reserve [Line Items]
Impairment charges				1,000,000
$600-650 Million Net Opex Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs		1,000,000		115,000,000
Restructuring Charges recorded		1,000,000	2,000,000
$600-650 Million Net Opex Plan [Member] \| Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Net operating expenses					$ 600,000,000
$600-650 Million Net Opex Plan [Member] \| Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Net operating expenses					$ 650,000,000
$600-650 Million Net Opex Plan [Member] \| Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs			2,000,000
$600-650 Million Net Opex Plan [Member] \| Employee Termination Benefits [Member] \| Europe [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs				$ 24,000,000
EPS Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected \| Employees				450
Restructuring charges and other related closure costs		1,000,000	36,000,000	$ 30,000,000
Restructuring Charges recorded		1,000,000	43,000,000
Pre-tax charges incurred			67,000,000
Manufacturing Consolidation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs		$ 0	11,000,000	12,000,000
Restructuring Charges recorded			11,000,000
Pre-tax charges incurred			31,000,000
Manufacturing Consolidation [Member] \| Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs			1,000,000	8,000,000
Manufacturing Consolidation [Member] \| Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs			$ 10,000,000	$ 4,000,000
Set-top Box Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected \| Employees		1,400
Restructuring charges and other related closure costs		$ 83,000,000
Restructuring Charges recorded		$ 83,000,000
Set-top Box Restructuring Plan [Member] \| France [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected \| Employees		430
Set-top Box Restructuring Plan [Member] \| Asia [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected \| Employees		670
Set-top Box Restructuring Plan [Member] \| USA [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees affected \| Employees		120
Set-top Box Restructuring Plan [Member] \| Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs		$ 9,000,000
Set-top Box Restructuring Plan [Member] \| Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other related closure costs		$ 74,000,000

Impairment, Restructuring Charges and Other Related Closure Costs - Changes to Restructuring Provisions Recorded on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	$ 34	$ 42
Charges incurred	85	56
Adjustments for unused provisions		(7)
Amounts paid	(59)	(45)
Receivables not collected upon contract termination		(4)
Liability settlement	(3)
Longgang deconsolidation		(6)
Currency translation effect	(3)	(2)
Provision, ending balance	54	34
Set-top Box Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charges incurred	83
Amounts paid	(46)
Provision, ending balance	37
$600-650 Million Net Opex Plan [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	6	11
Charges incurred	1	2
Amounts paid	(1)	(5)
Currency translation effect	(1)	(2)
Provision, ending balance	5	6
Manufacturing Consolidation [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	1	5
Charges incurred		11
Amounts paid	(1)	(5)
Receivables not collected upon contract termination		(4)
Longgang deconsolidation		(6)
Provision, ending balance		1
EPS Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	18	15
Charges incurred	1	43
Adjustments for unused provisions		(7)
Amounts paid	(10)	(33)
Currency translation effect	(1)
Provision, ending balance	8	18
Other Restructuring Initiatives [Member]
Restructuring Cost and Reserve [Line Items]
Provision, beginning balance	9	11
Amounts paid	(1)	(2)
Liability settlement	(3)
Currency translation effect	(1)
Provision, ending balance	$ 4	$ 9

Interest Expense, Net - Summary of Interest Expense, Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Income	$ 20	$ 18	$ 12
Expense	(40)	(40)	(30)
Total	$ (20)	$ (22)	$ (18)

Interest Expense, Net - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net Investment Income [Line Items]
Capitalized borrowing cost	$ 0	$ 0	$ 0
Senior Unsecured Convertible Debt [Member]
Net Investment Income [Line Items]
Interest expense	25,000,000	24,000,000	12,000,000
Non-cash interest expense accretion of discount on liability component	$ 21,000,000	20,000,000	10,000,000
Issued date of senior unsecured convertible bonds	Jul. 31, 2014
Floating Rate Notes [Member]
Net Investment Income [Line Items]
Interest income (expense), net	$ 6,000,000	$ 6,000,000	$ 2,000,000

Income Tax - Income (Loss) before Income Tax (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income (loss) recorded in The Netherlands	$ (10)	$ (18)	$ (9)
Income (loss) from foreign operations	211	107	115
Income (loss) before income taxes and noncontrolling interest	$ 201	$ 89	$ 106

Income Tax - Income Tax Benefit (Expense) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
The Netherlands Taxes - current	$ (2)	$ 5
Foreign taxes - current	(69)	(43)	$ (50)
Total current taxes	(71)	(38)	(50)
The Netherlands Taxes - deferred	0	0	0
Foreign taxes - deferred	40	59	73
Total deferred taxes	40	59	73
Income tax benefit (expense)	$ (31)	$ 21	$ 23
Effective tax rate	15.00%	(24.00%)	(21.00%)

Income Tax - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Netherlands statutory income taxes rate			25.00%	25.00%	25.00%
Effect of the tax benefits on basic earnings per share			$ 0.05	$ 0.05	$ 0.07
Maximum percentage of tax reduction from tax holidays			100.00%	100.00%	100.00%
Income tax holiday expiration date			Dec. 31, 2022
Legal inflationary index			0.04%
Deferred tax benefit (expense) recorded as component of other comprehensive income (loss)			$ (1)	$ (3)
Cumulative amount of distributable earnings	$ 785	$ 626	785	626
Unrecognized tax benefits	195	180	195	180
Accrued interest and penalties related to uncertain tax positions	1	1	$ 1	$ 1	$ 27
Interest and penalties of unrecognized tax benefits	$ 9	$ 9
Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax year			1996
Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax year			2016

Income Tax - Differences in Income Taxes Computed at Netherlands Statutory Rate and Effective Income Tax Rate (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax benefit (expense) computed at statutory rate	$ (51)	$ (23)	$ (26)
Non-deductible and non-taxable permanent differences, net	5	(18)	8
Income (loss) on equity-method investments	2		(11)
Valuation allowance adjustments	10	1	26
Current year credits	34	44	53
Other tax and credits	(34)	(13)	8
Benefits from tax holidays	49	42	65
Net impact of changes to uncertain tax positions	(22)	8	(92)
Earnings of subsidiaries taxed at different rates	(24)	(20)	(8)
Income tax benefit (expense)	$ (31)	$ 21	$ 23

Income Tax - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Tax loss carryforwards and investment credits	$ 804	$ 827
Less unrecognized tax benefit	(195)	(180)
Tax loss carryforwards net of unrecognized tax benefit	609	647
Inventory valuation	29	22
Impairment and restructuring charges	20	15
Fixed asset depreciation in arrears	34	44
Capitalized development costs	91	80
Receivables for government funding	7	5
Tax credits granted on past capital investments	1,165	1,156
Pension service costs	68	73
Commercial accruals	19	21
Other temporary differences	92	86
Total deferred tax assets	2,134	2,149
Valuation allowances	(1,577)	(1,585)
Deferred tax assets, net	557	564
Accelerated fixed asset depreciation	(10)	(16)
Acquired intangible assets	(8)	(11)
Advances of government funding	(16)	(16)
Other temporary differences		(8)
Deferred tax liabilities	(34)	(51)
Net deferred income tax asset	$ 523	$ 513

Income Tax - Gross Deferred Tax Assets on Tax Loss Carryforwards and Investment Credits Expiration (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
2017	$ 16
2018	89
2019	80
2020	16
2021	3
Thereafter	600
Total	$ 804	$ 827

Income Tax - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Balance at beginning of year	$ 226	$ 313	$ 255
Additions based on tax positions related to the current year	34	38	51
Additions for tax positions of prior years	1		43
Reduction for tax positions of prior years	(13)	(48)	(2)
Settlements		(48)
Prepayment		(3)	(5)
Reductions due to lapse of statute of limitations	(4)	(1)
Foreign currency translation	(6)	(25)	(29)
Balance at end of year	$ 238	$ 226	$ 313

Commitments - Company's Commitments (Detail) $ in Millions	Dec. 31, 2016 USD ($)
Recorded Unconditional Purchase Obligation [Line Items]
Operating leases, Total	$ 168
Operating leases, 2017	46
Operating leases, 2018	31
Operating leases, 2019	19
Operating leases, 2020	16
Operating leases, 2021	13
Operating leases, Thereafter	43
Purchase obligations, Total	619
Purchase obligations, 2017	581
Purchase obligations, 2018	34
Purchase obligations, 2019	4
Purchase obligations, 2020	0
Purchase obligations, 2021	0
Purchase obligations, Thereafter	0
Other obligations, Total	406
Other obligations, 2017	248
Other obligations, 2018	90
Other obligations, 2019	47
Other obligations, 2020	9
Other obligations, 2021	5
Other obligations, Thereafter	7
Company's commitments, Total	1,193
Company's commitments, 2017	875
Company's commitments, 2018	155
Company's commitments, 2019	70
Company's commitments, 2020	25
Company's commitments, 2021	18
Company's commitments, Thereafter	50
Equipment Purchase [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligations, Total	402
Purchase obligations, 2017	402
Purchase obligations, 2020	0
Purchase obligations, 2021	0
Purchase obligations, Thereafter	0
Foundry Purchase [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligations, Total	80
Purchase obligations, 2017	80
Purchase obligations, 2020	0
Purchase obligations, 2021	0
Purchase obligations, Thereafter	0
Software, Design, Technologies and Licenses [Member]
Recorded Unconditional Purchase Obligation [Line Items]
Purchase obligations, Total	137
Purchase obligations, 2017	99
Purchase obligations, 2018	34
Purchase obligations, 2019	4
Purchase obligations, 2020	0
Purchase obligations, 2021	0
Purchase obligations, Thereafter	$ 0

Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Operating lease expense	$ 56	$ 56	$ 66

Financial Instruments and Risk Management - Additional Information (Detail)		12 Months Ended
	Jul. 28, 2016 USD ($)	Dec. 31, 2016 USD ($) Securities Customer	Dec. 31, 2015 USD ($) Securities Customer	Dec. 31, 2014 USD ($)	Jul. 03, 2014 USD ($)
Derivative [Line Items]
Maximum percentage for Research and Development and Corporate costs of the total forecasted transactions		80.00%
Maximum percentage for manufacturing costs of forecasted transactions		70.00%
Maximum percentage for designated hedged item of forecasted transactions		100.00%
Hedge exposure to the variability of cash flows for forecasted transactions		24 months
Cost of sales		$ (4,518,000,000)	$ (4,565,000,000)	$ (4,906,000,000)
Realized gain (loss) on reduction in operating expenses		(2,000,000)	(65,000,000)	(1,000,000)
Ineffective portion of hedge was recorded on Other income and expenses, net		0	0	0
Deferred losses on derivative instrument, net of tax		$ 47,000,000
Period of Accumulated other comprehensive income (loss)		12 months
Amount reclassified as Other Income and Expenses, net		$ 0
Fair value of assets		2,000,000	6,000,000
Fair value of liabilities		$ 45,000,000	$ 25,000,000
Maximum outstanding amount per instrument with each Bank , as percentage of total		20.00%
Number of customer represented more than 10% of trade accounts receivable \| Customer		0	0
Property, plant and equipment	$ 2,000,000
Goodwill	42,000,000	$ 116,000,000	$ 76,000,000	82,000,000
Impairment charge on investments		$ 0	$ 0
Aggregate carrying amount of cost-method investments				3,000,000
Cost-method investments, Other-than-temporary impairment charge				3,000,000
Securities in unrealized loss position \| Securities		0	0
AMS [Member]
Derivative [Line Items]
Purchase consideration paid in cash	78,000,000
Acquisition-date fair value of a sales earn-out value, low	12,000,000
Acquisition-date fair value of a sales earn-out value, high	37,000,000
Property, plant and equipment	2,000,000
Goodwill	42,000,000
Technology [Member]
Derivative [Line Items]
Intangible assets	6,000,000
Technology [Member] \| AMS [Member]
Derivative [Line Items]
Intangible assets	6,000,000
In-process R&D [Member]
Derivative [Line Items]
Intangible assets	40,000,000
In-process R&D [Member] \| AMS [Member]
Derivative [Line Items]
Intangible assets	$ 40,000,000
Zero Coupon due 2019 (Tranche A) [Member]
Derivative [Line Items]
Debt discount rate		2.40%	2.40%
Interest rate		1.00%
Expected life of the instrument		5 years
1.0% due 2021 (Tranche B) [Member]
Derivative [Line Items]
Debt discount rate		3.22%	3.22%
Interest rate		1.00%
Expected life of the instrument		7 years
Fair Value, Inputs, Level 3 [Member]
Derivative [Line Items]
Fair value of liability component					$ 878,000,000
Minimum [Member]
Derivative [Line Items]
Major customer percentage of trade accounts receivable		10.00%	10.00%
Foreign Exchange Contract [Member] \| Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] \| Reclassification Out of Accumulated Other Comprehensive Income [Member]
Derivative [Line Items]
Cost of sales		$ (7,000,000)	$ (105,000,000)	(1,000,000)
Currency Collars [Member]
Derivative [Line Items]
Fair value of net assets (liabilities)		12,000,000
Fair value of assets		0
Fair value of liabilities		12,000,000
Foreign Exchange Forward Contracts [Member]
Derivative [Line Items]
Fair value of assets		2,000,000
Fair value of liabilities		33,000,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount of Derivative Instruments		$ 375,000,000	372,000,000	286,000,000
Foreign currency forward contracts maturity term		26 days
Fair value of assets		$ 1,000,000	1,000,000
Fair value of liabilities		$ 2,000,000	1,000,000
Not Designated as Hedging Instrument [Member] \| Minimum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms		3 days
Not Designated as Hedging Instrument [Member] \| Maximum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms		254 days
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount of Derivative Instruments		$ 1,370,000,000	1,449,000,000	$ 1,386,000,000
Foreign currency forward contracts maturity term		153 days
Fair value of assets		$ 1,000,000	5,000,000
Fair value of liabilities		$ 43,000,000	$ 24,000,000
Designated as Hedging Instrument [Member] \| Minimum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms		4 days
Designated as Hedging Instrument [Member] \| Maximum [Member]
Derivative [Line Items]
Foreign currency forward contracts remaining terms		19 months

Financial Instruments and Risk Management - Notional Amounts of Outstanding Derivative Instruments (Detail) - Designated as Hedging Instrument [Member]	Dec. 31, 2016 USD ($)	Dec. 31, 2016 EUR (€)	Dec. 31, 2016 SGD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Derivative [Line Items]
Notional amount \| $	$ 1,370,000,000			$ 1,449,000,000	$ 1,386,000,000
Foreign Exchange Forward Contracts [Member] \| R&D and Other Operating Expense [Member]
Derivative [Line Items]
Notional amount		€ 237,000,000
Foreign Exchange Forward Contracts [Member] \| Manufacturing Costs [Member]
Derivative [Line Items]
Notional amount		347,000,000	$ 123,000,000
Currency Collars [Member] \| R&D and Other Operating Expense [Member]
Derivative [Line Items]
Notional amount		248,000,000
Currency Collars [Member] \| Manufacturing Costs [Member]
Derivative [Line Items]
Notional amount		€ 387,000,000

Financial Instruments and Risk Management - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	$ 2	$ 6
Total Liability Derivatives	(45)	(25)
Foreign Exchange Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	2
Total Liability Derivatives	(33)
Currency Collars [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	0
Total Liability Derivatives	(12)
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	1	5
Total Liability Derivatives	(43)	(24)
Designated as Hedging Instrument [Member] \| Foreign Exchange Forward Contracts [Member] \| Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	1	3
Designated as Hedging Instrument [Member] \| Foreign Exchange Forward Contracts [Member] \| Other Payables and Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	(31)	(18)
Designated as Hedging Instrument [Member] \| Currency Collars [Member] \| Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives		1
Designated as Hedging Instrument [Member] \| Currency Collars [Member] \| Other Payables and Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	(11)	(6)
Designated as Hedging Instrument [Member] \| Currency Collars [Member] \| Other Noncurrent Assets [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives		1
Designated as Hedging Instrument [Member] \| Currency Collars [Member] \| Other Long-term Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	(1)
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	1	1
Total Liability Derivatives	(2)	(1)
Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward Contracts [Member] \| Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Asset Derivatives	1	1
Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward Contracts [Member] \| Other Payables and Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	$ (2)	$ (1)

Financial Instruments and Risk Management - Effect on Consolidated Statements of Income of Derivative Instruments (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	$ (47)	$ (23)
Gain (loss) reclassified from OCI into earnings	(9)	(170)
Foreign Exchange Forward Contracts [Member] \| Cost of Sales [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	(24)	(14)
Gain (loss) reclassified from OCI into earnings	(5)	(63)
Foreign Exchange Forward Contracts [Member] \| Selling, General and Administrative [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	(2)	(1)
Gain (loss) reclassified from OCI into earnings		(8)
Foreign Exchange Forward Contracts [Member] \| Research and Development [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	(8)	(4)
Gain (loss) reclassified from OCI into earnings	(1)	(29)
Currency Collars [Member] \| Cost of Sales [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	(8)	(3)
Gain (loss) reclassified from OCI into earnings	(2)	(42)
Currency Collars [Member] \| Selling, General and Administrative [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	(1)
Gain (loss) reclassified from OCI into earnings		(6)
Currency Collars [Member] \| Research and Development [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) deferred in OCI on derivative	(4)	(1)
Gain (loss) reclassified from OCI into earnings	$ (1)	$ (22)

Financial Instruments and Risk Management - Effect on Consolidated Statements of Income of Derivative Instruments Not Designated as Hedge (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange forward contracts	$ (3)	$ 11
Foreign Exchange Forward Contracts [Member] \| Other Income and Expenses, Net [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange forward contracts	$ (3)	$ 11

Financial Instruments and Risk Management - Schedule of Financial Assets (Liabilities) Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on business combinations	$ (12)
Total	299	$ 335
Derivative Financial Instruments, Liabilities [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	(43)	(24)
Derivative Financial Instruments, Liabilities [Member] \| Not Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	(2)	(1)
U.S. Treasury Bonds/Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	335	335
Equity Securities [Member] \| Available-for-Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	11	11
Equity Securities [Member] \| Held-for-Trading Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	8	8
Derivative Financial Instruments, Assets [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	1	5
Derivative Financial Instruments, Assets [Member] \| Not Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	1	1
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	354	354
Fair Value, Inputs, Level 1 [Member] \| U.S. Treasury Bonds/Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	335	335
Fair Value, Inputs, Level 1 [Member] \| Equity Securities [Member] \| Available-for-Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	11	11
Fair Value, Inputs, Level 1 [Member] \| Equity Securities [Member] \| Held-for-Trading Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities issued by foreign governments	8	8
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	(43)	(19)
Fair Value, Inputs, Level 2 [Member] \| Derivative Financial Instruments, Liabilities [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	(43)	(24)
Fair Value, Inputs, Level 2 [Member] \| Derivative Financial Instruments, Liabilities [Member] \| Not Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	(2)	(1)
Fair Value, Inputs, Level 2 [Member] \| Derivative Financial Instruments, Assets [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	1	5
Fair Value, Inputs, Level 2 [Member] \| Derivative Financial Instruments, Assets [Member] \| Not Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	1	$ 1
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on business combinations	(12)
Total	$ (12)

Financial Risk Factors - Schedule of Assets (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration on business combination	$ (12)
Ending balance	(12)
Amount of total losses for the period included in earnings attributable to assets still held at the reporting date	$ 0

Financial Instruments and Risk Management - Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Carrying Amount [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 960	$ 1,099
Carrying Amount [Member] \| Fair Value, Inputs, Level 1 [Member] \| Senior Unsecured Convertible Bonds [Member]
Long-term debt
Senior unsecured convertible bonds	926	904
Carrying Amount [Member] \| Fair Value, Inputs, Level 2 [Member]
Long-term debt
Bank loans (including current portion)	525	708
Estimate Fair Value [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	960	1,099
Estimate Fair Value [Member] \| Fair Value, Inputs, Level 1 [Member] \| Senior Unsecured Convertible Bonds [Member]
Long-term debt
Senior unsecured convertible bonds	1,127	960
Estimate Fair Value [Member] \| Fair Value, Inputs, Level 2 [Member]
Long-term debt
Bank loans (including current portion)	525	708
Cash equivalents	$ 1,629	$ 1,771	$ 2,017	$ 1,836

Financial Instruments and Risk Management - Fair Value Information on Other Financial Assets and Liabilities Recorded at Amortized Cost (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Value of the equity instrument embedded in the issued convertible bonds	$ 121	$ 0	$ 121

Related Party Transactions - Transactions with Significant Shareholders, their Affiliates and Other Related Parties (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Sales & other services	$ 1	$ 7	$ 24
Other purchases	1	65	24
Accounts receivable	7	8	22
Accounts payable	$ 51	$ 61	$ 56

Related Party Transactions - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ST Foundation [Member]
Related Party Transaction [Line Items]
Contributed cash amounts to ST Foundation	$ 0	$ 500,000	$ 500,000

Segment Information - Additional Information (Detail)	12 Months Ended
Segment Information - Additional Information (Detail)	Dec. 31, 2016 Business_Area
Segment Reporting [Abstract]
Number of business areas	2

Segment Information - Net Revenues by Product Segment and by Product Line (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net revenues	$ 6,973	$ 6,897	$ 7,404
Automotive and Discrete Group (ADG) [Member]
Segment Reporting Information [Line Items]
Net revenues	2,813	2,731	2,897
Analog and MEMS Group (AMG) [Member]
Segment Reporting Information [Line Items]
Net revenues	1,584	1,671	1,877
Microcontrollers and Digital ICs Group (MDG) [Member]
Segment Reporting Information [Line Items]
Net revenues	2,285	2,292	2,377
Others [Member]
Segment Reporting Information [Line Items]
Net revenues	$ 291	$ 203	$ 253

Segment Information - Operating Income by Reportable Segment (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ 214	$ 109	$ 168
Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	386	332	433
Operating Segments [Member] \| Automotive and Discrete Group (ADG) [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	211	194	279
Operating Segments [Member] \| Analog and MEMS Group (AMG) [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	67	109	168
Operating Segments [Member] \| Microcontrollers and Digital ICs Group (MDG) [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	108	29	(14)
Segment Reconciling Items [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	(172)	(223)	(265)
Segment Reconciling Items [Member] \| Others [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ (172)	$ (223)	$ (265)

Segment Information - Reconciliation of Operating Income of Segments to Total Operating Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment, restructuring charges and other related closure costs	$ (93)	$ (65)	$ (90)
Operating results of other businesses			22
Operating income	214	109	168
Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	386	332	433
Segment Reconciling Items [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment, restructuring charges and other related closure costs	(93)	(65)	(90)
Unallocated manufacturing results	(33)	(69)	(45)
Operating results of other businesses	(21)	(82)	(100)
Strategic and other research and development programs and other non-allocated provisions	(25)	(7)	(30)
Operating income	$ (172)	$ (223)	$ (265)

Segment Information - Net Revenues (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 6,973	$ 6,897	$ 7,404
The Netherlands [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	1,751	1,667	1,905
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	134	169	200
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	58	58	61
USA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	990	1,039	1,003
Singapore [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	3,699	3,606	3,831
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	323	332	368
Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 18	$ 26	$ 36

Segment Information - Property, Plant & Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 2,287	$ 2,321
The Netherlands [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	462	383
France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	520	584
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	445	496
Other European Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	84	108
USA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	6	8
Singapore [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	277	276
Malaysia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	166	170
Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 327	$ 296

Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Trade Receivables [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 7	$ 8	$ 9
Charged to costs and expenses	3	2	1
Additions/ (Deductions)	2	(3)	(2)
Balance at end of period	12	7	8
Valuation Allowance of Deferred Tax Assets [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	1,585	1,607	1,454
Translation adjustment	(4)	(28)	(30)
Charged to costs and expenses	13	24	201
Additions/ (Deductions)	(16)	(18)	(18)
Balance at end of period	$ 1,578	$ 1,585	$ 1,607