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