Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 16, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'ALV | ' |
Entity Registrant Name | 'AUTOLIV INC | ' |
Entity Central Index Key | '0001034670 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 90,532,178 |
Consolidated_Statements_of_Net
Consolidated Statements of Net Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net sales | $2,208 | $2,119 | $6,886.80 | $6,451.50 |
Cost of sales | -1,781.60 | -1,714.10 | -5,550.90 | -5,201.80 |
Gross profit | 426.4 | 404.9 | 1,335.90 | 1,249.70 |
Selling, general & administrative expenses | -101 | -93.8 | -308.1 | -286.7 |
Research, development & engineering expenses, net | -135.7 | -120.2 | -412.7 | -379.7 |
Amortization of intangibles | -4.1 | -5.1 | -12.4 | -15.3 |
Other income (expense), net | -10.8 | -3.5 | -96.8 | -9.3 |
Operating income | 174.8 | 182.3 | 505.9 | 558.7 |
Equity in earnings of affiliates, net of tax | 1.4 | 1.8 | 5.8 | 5.4 |
Interest income | 1.6 | 0.9 | 4.1 | 2.5 |
Interest expense | -19.4 | -8.1 | -45.2 | -24.3 |
Other financial items, net | -1.9 | -0.3 | -6.9 | -2.9 |
Income before income taxes | 156.5 | 176.6 | 463.7 | 539.4 |
Income tax expense | -49.8 | -51.7 | -142.7 | -150 |
Net income | 106.7 | 124.9 | 321 | 389.4 |
Less: net income attributable to non-controlling interests | 0.2 | 1 | 1.4 | 3.3 |
Net income attributable to controlling interest | $106.50 | $123.90 | $319.60 | $386.10 |
Net earnings per share - basic | $1.16 | $1.29 | $3.44 | $4.03 |
Net earnings per share - diluted | $1.16 | $1.29 | $3.43 | $4.02 |
Weighted average number of shares outstanding, net of treasury shares (in millions) | 91.6 | 95.8 | 92.9 | 95.7 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | 91.9 | 96.2 | 93.2 | 96 |
Number of shares outstanding, excluding dilution and net of treasury shares (in millions) | 90.5 | 95.9 | 90.5 | 95.9 |
Cash dividend per share - declared | $0.54 | $0.50 | $1.60 | $1.50 |
Cash dividend per share - paid | $0.54 | $0.50 | $1.58 | $1.50 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net income | $106.70 | $124.90 | $321 | $389.40 |
Foreign currency translation adjustments | -89.7 | 39 | -92 | -15.6 |
Defined benefit pension plan | 0.6 | 2.8 | 0.8 | 7.9 |
Other comprehensive loss, before tax | -89.1 | 41.8 | -91.2 | -7.7 |
Income tax expense related to defined benefit pension plan | -0.2 | -1 | -0.2 | -2.8 |
Other comprehensive loss, net of tax | -89.3 | 40.8 | -91.4 | -10.5 |
Comprehensive income | 17.4 | 165.7 | 229.6 | 378.9 |
Less: comprehensive income attributable to non-controlling interest | 0.4 | 1 | 1.2 | 3.6 |
Comprehensive income attributable to controlling interest | $17 | $164.70 | $228.40 | $375.30 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash & cash equivalents | $1,846.70 | $1,118.30 | ||
Receivables, net | 1,712.70 | 1,688 | ||
Inventories, net | 686.5 | 661.8 | ||
Other current assets | 243.9 | 232.3 | ||
Total current assets | 4,489.80 | 3,700.40 | ||
Property, plant & equipment, net | 1,396.10 | 1,336.20 | ||
Investments and other non-current assets | 238.9 | 259 | ||
Goodwill | 1,602.60 | 1,610.10 | ||
Intangible assets, net | 65.4 | 77.3 | ||
Total assets | 7,792.80 | 6,983 | ||
Liabilities and equity | ' | ' | ||
Short-term debt | 250.4 | [1] | 339.4 | [1] |
Accounts payable | 1,053.50 | 1,199.90 | ||
Accrued expenses | 800.2 | 633.9 | ||
Other current liabilities | 220.9 | 255.3 | ||
Total current liabilities | 2,325 | 2,428.50 | ||
Long-term debt | 1,520.50 | [1] | 279.1 | [1] |
Pension liability | 148 | 147.3 | ||
Other non-current liabilities | 123.6 | 127.7 | ||
Total non-current liabilities | 1,792.10 | 554.1 | ||
Common stock | 102.8 | 102.8 | ||
Additional paid-in capital | 1,329.30 | 1,329.30 | ||
Retained earnings | 3,138.90 | 2,965.90 | ||
Accumulated other comprehensive (loss) income | -90.9 | 0.5 | ||
Treasury stock | -819.8 | -417.2 | ||
Total parent shareholders' equity | 3,660.30 | 3,981.30 | ||
Non-controlling interest | 15.4 | 19.1 | ||
Total equity | 3,675.70 | 4,000.40 | ||
Total liabilities and equity | $7,792.80 | $6,983 | ||
[1] | Debt as reported in balance sheet. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net income | $321 | $389.40 |
Depreciation and amortization | 228 | 210.6 |
Other, net | 20.6 | 38.4 |
Changes in operating assets and liabilities | -86.2 | -99.7 |
Net cash provided by operating activities | 483.4 | 538.7 |
Investing activities | ' | ' |
Expenditures for property, plant and equipment | -326.8 | -271.2 |
Proceeds from sale of property, plant and equipment | 1.3 | 3.8 |
Acquisitions and divestitures of businesses and other, net | -1.7 | -1 |
Net cash used in investing activities | -327.2 | -268.4 |
Financing activities | ' | ' |
Net (decrease) increase in short-term debt | -86.9 | 147.8 |
Issuance of long-term debt | 1,253 | ' |
Repayments and other changes in long-term debt | -1.1 | -135 |
Dividends paid to non-controlling interest | -4.9 | -0.4 |
Dividends paid | -146.6 | -143.5 |
Repurchased shares | -430 | ' |
Common stock options exercised | 23.4 | 16 |
Other, net | 0.4 | 0.9 |
Net cash provided by (used in) financing activities | 607.3 | -114.2 |
Effect of exchange rate changes on cash and cash equivalents | -35.1 | 0.9 |
Increase in cash and cash equivalents | 728.4 | 157 |
Cash and cash equivalents at beginning of period | 1,118.30 | 977.7 |
Cash and cash equivalents at end of period | $1,846.70 | $1,134.70 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation | ' |
1 Basis of Presentation | |
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited financial statements and all adjustments considered necessary for a fair presentation have been included in the financial statements. All such adjustments are of a normal recurring nature. The result for the interim period is not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2014. Certain prior-year amounts have been reclassified to conform to current year presentation. | |
The condensed consolidated balance sheet at December 31, 2013 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. | |
Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 21, 2014. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements | ' |
2 New Accounting Pronouncements | |
In May 2014 the Financial Accounting Standards Board (FASB) issued the Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), that will supersede nearly all existing revenue recognition guidance under US GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard will be effective for public entities for annual and interim periods beginning after December 15, 2016. | |
Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Entities electing the full retrospective adoption will apply the standard to each period presented in the financial statements. This means that entities will have to apply the new guidance as if it had been in effect since the inception of all its contracts with customers presented in the financial statements. Entities that elect the modified retrospective approach will apply the guidance retrospectively only to the most current period presented in the financial statements. This means that entities will have to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings at the date of initial application. The new revenue standard will be applied to contracts that are in progress at the date of initial application. The Company plans to adopt the new standard from January 1, 2017. The Company is in process of evaluating which adoption method it plans to use and the potential effect the new standard will have on its consolidated financial statements. | |
In August 2014, the FASB issued the ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, that requires management to evaluate whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern. The standard will be effective for annual periods after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The Company has early adopted the standard in its interim reporting for September 30, 2014; however the adoption of ASU 2014-15 had no impact on the Company’s disclosures in the unaudited condensed consolidated financial statements. |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||||||||||
3 Fair Value Measurement | |||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||||||||||||||||||||
The Company uses derivative financial instruments, “derivatives”, as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. The derivatives outstanding at September 30, 2014 were foreign exchange swaps. All swaps principally match the terms and maturity of the underlying debt and no swaps have a maturity beyond six months. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. | |||||||||||||||||||||||||
When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statement of Net Income along with the off-setting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statement of Net Income when the hedge transaction affects net earnings. There were no derivatives designated as hedging instruments outstanding as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||
The Company records derivatives at fair value. Any gains and losses on derivatives recorded at fair value are reflected in the Consolidated Statement of Net Income with the exception of cash flow hedges where an immaterial portion of the fair value is reflected in OCI. The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Derivatives with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value. | |||||||||||||||||||||||||
Under existing GAAP, there is a disclosure framework hierarchy associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: | |||||||||||||||||||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | |||||||||||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. | |||||||||||||||||||||||||
Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | |||||||||||||||||||||||||
The Company’s derivatives are all classified as Level 2 and there have been no transfers during this or comparable periods. | |||||||||||||||||||||||||
The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013. The carrying value is the same as the fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets at September 30, 2014 and in the Consolidated Balance Sheets at December 31, 2013, have been presented on a gross basis. The net amounts subject to netting agreements that the Company choose not to offset are presented in footnotes. According to the close-out netting agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||
Measurements | Measurements | ||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Nominal | Derivative | Derivative | |||||||||||||||||||
volume | asset | liability | volume | asset | liability | ||||||||||||||||||||
(Other | (Other | (Other | (Other | ||||||||||||||||||||||
current | current | current | current | ||||||||||||||||||||||
assets) | liabilities) | assets) | liabilities) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 452 | 1) | $ | 1.3 | 2) | $ | 0.5 | 3) | $ | 504.1 | 4) | $ | 1.7 | 5) | $ | 2.8 | 6) | |||||||
Total derivatives not designated as hedging instruments | $ | 452 | $ | 1.3 | $ | 0.5 | $ | 504.1 | $ | 1.7 | $ | 2.8 | |||||||||||||
1) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $309.1 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.2 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.5 million. | ||||||||||||||||||||||||
4) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $425.4 million. | ||||||||||||||||||||||||
5) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.5 million. | ||||||||||||||||||||||||
6) | Net amount after deducting for offsetting swaps under ISDA agreements is $2.6 million. | ||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
There were no derivatives designated as hedging instruments outstanding as of September 30, 2014 and December 31, 2013. During the first quarter of 2013 the Company closed a $60 million interest rate swap which was designated as a hedging instrument. For the three and nine months ended September 30, 2013 the gains and losses recognized in other financial items, net were immaterial. For the three months ended September 30, 2013 there was no interest expense recognized related to the closed interest rate swap. For the nine months ended September 30, 2013, the Company recognized a loss of $1.3 million as interest expense related to this closed interest rate swap. The hedged item related to the closed interest rate swap consists of a $60 million debt note which matures in 2019. The fair value change related to this note of $1.3 million decreased interest expense and thus fully off-set the $1.3 million fair value change related to the hedging instrument as of September 30, 2013. | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
All amounts recognized in the Consolidated Statement of Net Income related to derivatives, not designated as hedging instruments, relate to economic hedges and thus have been materially off-set by an opposite Consolidated Statement of Net Income effect of the related financial liabilities or financial assets. The derivatives not designated as hedging instruments outstanding at September 30, 2014 were foreign exchange swaps. For the three and nine months ended September 30, 2014, the gains and losses recognized in other financial items, net were a gain of $0.8 million and a gain of $1.9 million, respectively, for derivative instruments not designated as hedging instruments. For the three and nine months ended September 30, 2013, the Company recognized a gain of $0.3 million and a gain of $0.3 million, respectively, in other financial items, net for derivative instruments not designated as hedging instruments. For the three and nine months ended September 30, 2014 and September 30, 2013, the gains and losses recognized as interest expense were immaterial. | |||||||||||||||||||||||||
The carrying value of cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and short-term debt approximate their fair value because of the short term maturity of these instruments. The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The fair value of derivatives is estimated using a discounted cash flow method based on quoted market prices. The fair value and carrying value of debt is summarized in the table below. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy. The discount rates for all derivative contracts are based on bank deposit or swap interest rates. Credit risk has been considered when determining the discount rates used for the derivative contracts. | |||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||
September 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Long-term debt | value1) | value | value1) | value | |||||||||||||||||||||
U.S. Private placement | $ | 1,424.80 | $ | 1,480.60 | $ | 177.6 | $ | 187.7 | |||||||||||||||||
Medium-term notes | 90.1 | 92.9 | 99.9 | 100.5 | |||||||||||||||||||||
Other long-term debt | 5.6 | 5.6 | 1.6 | 1.6 | |||||||||||||||||||||
Total | $ | 1,520.50 | $ | 1,579.10 | $ | 279.1 | $ | 289.8 | |||||||||||||||||
Short-term debt | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 100.2 | $ | 100.2 | $ | 65.6 | $ | 65.6 | |||||||||||||||||
Short-term portion of long-term debt | 150.2 | 153.6 | 167.2 | 172.6 | |||||||||||||||||||||
Notes2) | — | — | 106.6 | 107.6 | |||||||||||||||||||||
Total | $ | 250.4 | $ | 253.8 | $ | 339.4 | $ | 345.8 | |||||||||||||||||
1) | Debt as reported in balance sheet. | ||||||||||||||||||||||||
2) | Notes issued as part of the equity units offering were remarketed in April 2012, and matured on April 30, 2014. The notes were repaid and are no longer outstanding. | ||||||||||||||||||||||||
On April 25, 2014, the Company issued and sold $1.25 billion of long term debt securities in a U.S. Private Placement pursuant to a Note Purchase and Guaranty Agreement (the “Note Purchase Agreement”) dated April 23, 2014, by and among ASP, the Company and the purchasers listed therein (the “Purchasers”). The senior notes have an average interest rate of 3.84%, and consist of: $208 million aggregate principal amount of 5-year senior notes with an interest rate of 2.84%; $275 million aggregate principal amount of 7-year senior notes with an interest rate of 3.51%; $297 million aggregate principal amount of 10-year senior notes with an interest rate of 4.09%; $285 million aggregate principal amount of 12-year senior notes with an interest rate of 4.24%; and $185 million aggregate principal amount of 15-year senior notes with an interest rate of 4.44%. | |||||||||||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis | |||||||||||||||||||||||||
In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a non-recurring basis. Assets and liabilities that are measured at fair value on a non-recurring basis include long-lived assets, including investments in affiliates, and restructuring liabilities (see Note 6). | |||||||||||||||||||||||||
The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets. For restructuring obligations, the amount recorded represents the fair value of the payments expected to be made, and such provisions are discounted if the payments are expected to extend beyond one year. | |||||||||||||||||||||||||
As of September 30, 2014 the Company had $87.7 million of restructuring reserves which were measured at fair value upon initial recognition of the associated liability (see Note 6). For the three and nine months ended September 30, 2014, the Company did not record any impairment charges on its long-lived assets. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
4 Income Taxes | |
For the first nine months of 2014, the effective tax rate was 30.8%, compared with an effective tax rate of 27.8% in the first nine months of 2013. In the first nine months of 2014, the net impact of discrete tax items caused a 0.4% increase to the effective tax rate. The net impact of discrete tax items in the first nine months of 2013 caused a 0.5% decrease to the effective tax rate. | |
The Company files income tax returns in the United States federal jurisdiction, various state jurisdictions and foreign jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is effectively no longer subject to income tax examination by the U.S. Federal tax authorities for years prior to 2009. In addition, with few exceptions, the Company is also no longer subject to income tax examination by U.S. state and local and non-U.S. tax authorities for years prior to 2005. | |
The Company is undergoing tax audits in several jurisdictions covering multiple years. As of September 30, 2014 the Company is not aware of any proposed income tax adjustments resulting from those tax examinations that would have a material impact on the Company’s financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods. | |
During the third quarter of 2014, the Company recorded a net increase of $0.4 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current and prior years, including accruing additional interest related to unrecognized tax benefits of prior years. Of the total unrecognized tax benefits of $23.2 million recorded at September 30, 2014, $5.2 million is classified as current tax payable and $18.0 million is classified as non-current tax payable on the Condensed Consolidated Balance Sheet. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventories | ' | ||||||||
5 Inventories | |||||||||
Inventories are stated at the lower of cost (principally FIFO) or market. The components of inventories were as follows: | |||||||||
As of | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Raw materials | $ | 330.2 | $ | 314.8 | |||||
Work in progress | 240.8 | 232.9 | |||||||
Finished products | 202.9 | 201.9 | |||||||
Inventories | 773.9 | 749.6 | |||||||
Inventory valuation reserve | (87.4 | ) | (87.8 | ) | |||||
Total inventories, net of reserve | $ | 686.5 | $ | 661.8 |
Restructuring
Restructuring | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||||||
6 Restructuring | |||||||||||||||||||||||||
Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under existing credit facilities. The Company does not expect that the execution of these activities will have a material adverse impact on its liquidity position. | |||||||||||||||||||||||||
Third quarter of 2014 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the third quarter of 2014 mainly related to headcount reductions in Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from June 30, 2014 to September 30, 2014. | |||||||||||||||||||||||||
June 30, | Provision/ | Provision/ | Cash | Translation | September 30, | ||||||||||||||||||||
2014 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 96.1 | $ | 8.1 | $ | (0.1 | ) | $ | (10.6 | ) | $ | (5.8 | ) | $ | 87.7 | ||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||
Total reserve | $ | 96.1 | $ | 8.1 | $ | (0.1 | ) | $ | (10.6 | ) | $ | (5.8 | ) | $ | 87.7 | ||||||||||
Second quarter of 2014 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the second quarter of 2014 mainly related to headcount reductions in Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from March 31, 2014 to June 30, 2014. | |||||||||||||||||||||||||
March 31, | Provision/ | Provision/ | Cash | Translation | June 30, | ||||||||||||||||||||
2014 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 93.4 | $ | 10.6 | $ | (0.2 | ) | $ | (6.8 | ) | $ | (0.9 | ) | $ | 96.1 | ||||||||||
Other | 0.3 | — | — | (0.3 | ) | 0 | 0 | ||||||||||||||||||
Total reserve | $ | 93.7 | $ | 10.6 | $ | (0.2 | ) | $ | (7.1 | ) | $ | (0.9 | ) | $ | 96.1 | ||||||||||
First quarter of 2014 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the first quarter of 2014 mainly related to headcount reductions in Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2013 to March 31, 2014. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | March 31, | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 93.9 | $ | 5.1 | $ | (0.2 | ) | $ | (5.2 | ) | $ | (0.2 | ) | $ | 93.4 | ||||||||||
Other | 0.3 | — | — | — | 0 | 0.3 | |||||||||||||||||||
Total reserve | $ | 94.2 | $ | 5.1 | $ | (0.2 | ) | $ | (5.2 | ) | $ | (0.2 | ) | $ | 93.7 | ||||||||||
2013 | |||||||||||||||||||||||||
In 2013, the employee-related restructuring provisions mainly related to headcount reductions throughout Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2012 to December 31, 2013. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | December 31, | ||||||||||||||||||||
2012 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 74.9 | $ | 40.4 | $ | (4.7 | ) | $ | (20.0 | ) | $ | 3.3 | $ | 93.9 | |||||||||||
Other | 0.9 | — | (0.2 | ) | (0.4 | ) | 0 | 0.3 | |||||||||||||||||
Total reserve | $ | 75.8 | $ | 40.4 | $ | (4.9 | ) | $ | (20.4 | ) | $ | 3.3 | $ | 94.2 |
ProductRelated_Liabilities
Product-Related Liabilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Product-Related Liabilities | ' | ||||||||||||||||
7 Product-Related Liabilities | |||||||||||||||||
The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. | |||||||||||||||||
The Company records liabilities for product-related risks when probable claims are identified and when it is possible to reasonably estimate costs. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of the products sold. The provisions are recorded on an accrual basis. For further explanation, see Note 11 Contingent Liabilities below. | |||||||||||||||||
The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions for the three and nine months ended September 30, 2014 mainly relate to recall related issues. The cash paid for the three and nine months ended September 30, 2014 mainly relate to warranty related issues. The provisions for the three months ended September 30, 2013 mainly related to warranty related issues and the provisions for the nine months ended September 30, 2013 mainly related to recall related issues. The cash paid for the three and nine months ended September 30, 2013 mainly related to warranty related issues. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reserve at beginning of the period | $ | 47.7 | $ | 37.1 | $ | 36.4 | $ | 29.9 | |||||||||
Change in reserve | 11.3 | 2.9 | 27.9 | 16.4 | |||||||||||||
Cash payments | (6.8 | ) | (2.8 | ) | (12.2 | ) | (8.5 | ) | |||||||||
Translation difference | (0.9 | ) | 0.6 | (0.8 | ) | (0.0 | ) | ||||||||||
Reserve at end of the period | $ | 51.3 | $ | 37.8 | $ | 51.3 | $ | 37.8 |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Retirement Plans | ' | ||||||||||||||||
8 Retirement Plans | |||||||||||||||||
The Company has contributory and non-contributory defined benefit pension plans covering employees at most operations in the United States and in certain other countries. The main plan is the U.S. plan for which the benefits are based on an average of the employee’s earnings in the years preceding retirement and on credited service. Certain supplemental funded and unfunded plan arrangements also provide retirement benefits to specified groups of participants. | |||||||||||||||||
The Company has frozen participation in the U.S. pension plans to include only those employees hired as of December 31, 2003. The U.K. defined benefit plan is the most significant individual non-U.S. pension plan and the Company has frozen participation to include only those employees hired as of April 30, 2003. | |||||||||||||||||
The Net Periodic Benefit Costs related to Other Post-retirement Benefits were not significant to the Condensed Consolidated Financial Statements of the Company for the three and nine months ended September 30, 2014 and September 30, 2013, respectively, and are not included in the table below. | |||||||||||||||||
For further information on Pension Plans and Other Post-retirement Benefits, see Note 18 to the Consolidated Financial Statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on February 21, 2014. | |||||||||||||||||
The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 5.3 | $ | 5.6 | $ | 15.8 | $ | 16.9 | |||||||||
Interest cost | 5.2 | 4.9 | 15.9 | 14.8 | |||||||||||||
Expected return on plan assets | (5.0 | ) | (3.9 | ) | (15.0 | ) | (11.7 | ) | |||||||||
Amortization prior service credit | (0.2 | ) | (0.2 | ) | (0.6 | ) | (0.6 | ) | |||||||||
Amortization of actuarial loss | 0.7 | 3.1 | 2.2 | 9.2 | |||||||||||||
Net Periodic Benefit Cost | $ | 6 | $ | 9.5 | $ | 18.3 | $ | 28.6 |
Equity_Units_Offering
Equity Units Offering | 9 Months Ended |
Sep. 30, 2014 | |
Equity Units Offering | ' |
9 Equity Units Offering | |
On March 30, 2009, the Company sold, in an underwritten registered public offering, approximately 14.7 million common shares from treasury stock and 6.6 million equity units (the Equity Units), listed on the NYSE as Corporate Units, for an aggregate stated amount and public offering price of $235 million and $165 million, respectively. “Equity Units” is a term that describes a security that is either a Corporate Unit or a Treasury Unit, depending upon what type of note is used by the holder to secure the forward purchase contract (either a Note or a Treasury Security, as described below). The Equity Units initially consisted of a Corporate Unit which is (i) a forward purchase contract obligating the holder to purchase from the Company for a price in cash of $25, on the purchase contract settlement date of April 30, 2012, subject to early settlement in accordance with the terms of the Purchase Contract and Pledge Agreement, a certain number (at the Settlement Rate outlined in the Purchase Contract and Pledge Agreement) of shares of Common Stock; and (ii) a 1/40, or 2.5%, undivided beneficial ownership interest in a $1,000 principal amount of the Company’s 8% senior notes due 2014 (the “Senior Notes”). The Company allocated proceeds received upon issuance of the Equity Units based on relative fair values at the time of issuance. The fees associated with the remarketing (described below) were allocated such that 1% of the 6% of underwriting commissions paid to the debt were allocated as deferred charges based on commissions paid for similar debt issuances, but including factors for market conditions at the time of the offering and the Company’s credit rating, and the deferred charges were amortized using the effective interest rate method over the life of the notes until April 30, 2014. | |
The Company successfully completed the remarketing of the Senior Notes in March 2012, pursuant to which the interest rate on the Senior Notes was reset and certain other terms of the Senior Notes were modified. On March 15, 2012, the coupon was reset to 3.854% with a yield of 2.875% per annum. Autoliv did not receive any proceeds from the remarketing until the settlement of the forward stock purchase contracts on April 30, 2012. On April 30, 2012, Autoliv settled the 4,250,920 purchase contracts still outstanding following the repurchase of 2.3 million Equity Units in 2010. Autoliv settled the purchase contracts by issuing approximately 5.8 million shares of common stock in exchange for $106,273,000 in proceeds generated by the maturity of the U.S. Treasury securities purchased following the remarketing. The settlement of the purchase contracts concluded Autoliv’s equity obligations under the Equity Units. The Senior Notes that matured on April 30, 2014 were repaid and are no longer outstanding. |
Controlling_and_NonControlling
Controlling and Non-Controlling interest | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Controlling and Non-Controlling interest | ' | ||||||||||||||||||||||||
10 Controlling and Non-Controlling interest | |||||||||||||||||||||||||
The following tables present a roll-forward of the changes in equity attributable to controlling and non-controlling interest. | |||||||||||||||||||||||||
Three Months ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Controlling | Non- | Total | Controlling | Non- | Total | ||||||||||||||||||||
controlling | controlling | ||||||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,926.90 | $ | 16.5 | $ | 3,943.40 | $ | 3,886.10 | $ | 19.7 | $ | 3,905.80 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 106.5 | 0.2 | 106.7 | 123.9 | 1 | 124.9 | |||||||||||||||||||
Foreign currency translation | (89.9 | ) | 0.2 | (89.7 | ) | 39 | 0 | 39 | |||||||||||||||||
Defined benefit pension plan | 0.4 | — | 0.4 | 1.8 | — | 1.8 | |||||||||||||||||||
Total Comprehensive Income | 17 | 0.4 | 17.4 | 164.7 | 1 | 165.7 | |||||||||||||||||||
Common Stock incentives | 3.4 | — | 3.4 | 8.8 | — | 8.8 | |||||||||||||||||||
Cash dividends declared | (48.6 | ) | — | (48.6 | ) | (48.0 | ) | — | (48.0 | ) | |||||||||||||||
Repurchased shares | (238.4 | ) | — | (238.4 | ) | — | — | — | |||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (1.5 | ) | (1.5 | ) | — | (0.0 | ) | (0.0 | ) | |||||||||||||||
Balance at end of period | $ | 3,660.30 | $ | 15.4 | $ | 3,675.70 | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 | |||||||||||||
Nine Months ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Controlling | Non- | Total | Controlling | Non- | Total | ||||||||||||||||||||
controlling | controlling | ||||||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,981.30 | $ | 19.1 | $ | 4,000.40 | $ | 3,758.60 | $ | 17.5 | $ | 3,776.10 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 319.6 | 1.4 | 321 | 386.1 | 3.3 | 389.4 | |||||||||||||||||||
Foreign currency translation | (91.8 | ) | (0.2 | ) | (92.0 | ) | (15.9 | ) | 0.3 | (15.6 | ) | ||||||||||||||
Defined benefit pension plan | 0.6 | — | 0.6 | 5.1 | — | 5.1 | |||||||||||||||||||
Total Comprehensive Income | 228.4 | 1.2 | 229.6 | 375.3 | 3.6 | 378.9 | |||||||||||||||||||
Common Stock incentives | 27.4 | — | 27.4 | 21.4 | — | 21.4 | |||||||||||||||||||
Cash dividends declared | (146.8 | ) | — | (146.8 | ) | (143.7 | ) | — | (143.7 | ) | |||||||||||||||
Repurchased shares | (430.0 | ) | — | (430.0 | ) | — | — | — | |||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (4.9 | ) | (4.9 | ) | — | (0.4 | ) | (0.4 | ) | |||||||||||||||
Balance at end of period | $ | 3,660.30 | $ | 15.4 | $ | 3,675.70 | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 |
Contingent_Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2014 | |
Contingent Liabilities | ' |
11 Contingent Liabilities | |
Legal Proceedings | |
Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in the future. | |
In October 2014, one of the Company’s Brazilian subsidiaries received a notice of deficiency from the state tax authorities from the state of São Paulo, Brazil which, primarily, alleged violations of ICMS (VAT) payments and improper warehousing documentation. The aggregate assessment for all alleged violations was R$55 million (approximately $22.6 million), inclusive of fines, penalties and interest. The Company believes the full amount assessed is baseless, that it has reasonable legal and factual defenses to the assessment and, consequently, plans to defend its interests vigorously. The duration or ultimate outcome of the matter currently cannot be predicted or estimated and no provision for a loss has been recorded as of September 30, 2014. | |
Antitrust Matters | |
Authorities in several jurisdictions are currently conducting broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations include, but are not limited to, segments in which the Company operates. In addition to pending matters, authorities of other countries with significant light vehicle manufacturing or sales may initiate similar investigations. It is the Company’s policy to cooperate with governmental investigations. | |
On February 8, 2011, a Company subsidiary received a grand jury subpoena from the Antitrust Division of the U.S. Department of Justice (“DOJ”) related to its investigation of anti-competitive behavior among suppliers of occupant safety systems. | |
On June 6, 2012, the Company entered into a plea agreement with the DOJ and subsequently pled guilty to two counts of antitrust law violations involving a Japanese subsidiary and paid a fine of $14.5 million. Under the terms of the agreement, the Company will continue to cooperate with the DOJ in its investigation of other suppliers, but the DOJ will not otherwise prosecute Autoliv or any of its subsidiaries, present or former directors, officers or employees for the matters investigated (the DOJ did reserve the option to prosecute three specific employees, none of whom is a member of the senior management of the Company). | |
On June 7-9, 2011, representatives of the European Commission (“EC”), the European antitrust authority, visited two facilities of a Company subsidiary in Germany to gather information for a similar investigation. The investigation is still pending and the Company remains unable to estimate the financial impact such investigation will have or predict the reporting periods in which such financial impact may be recorded and has consequently not recorded a provision for loss as of September 30, 2014. However, management has concluded that it is probable that the Company’s operating results and cash flows will be materially adversely impacted for the reporting periods in which the EC investigation is resolved or becomes estimable. | |
On October 3, 2012, the Company received a letter from the Competition Bureau of Canada (“CBC”) related to the subjects investigated by the DOJ, seeking the voluntary production of certain corporate records and information related to sales of occupant safety systems in Canada. The Company has cooperated with the CBC’s investigation and believes that the investigation will not result in an adverse outcome for the Company. | |
On November 6, 2012, the Korean Fair Trade Commission visited one of the Company’s South Korean subsidiaries to gather information for a similar investigation. The Company is cooperating with this investigation. The Company cannot predict the duration, scope or ultimate outcome of this investigation and is unable to estimate the financial impact it may have, or predict the reporting periods in which any such financial impacts may be recorded. Consequently, the Company has not recorded a provision for loss as of September 30, 2014 with respect to this investigation. Also, since the Company’s plea agreement with the DOJ involved the actions of employees of a Japanese subsidiary of the Company, the Japan Fair Trade Commission is evaluating whether to initiate an investigation. | |
In August 2014, the Competition Commission of South Africa (the “CCSA”) contacted the Company regarding an investigation into the Company’s sales of occupant safety systems in South Africa. The Company is cooperating with the CCSA. The Company cannot predict the duration, scope or ultimate outcome of this investigation and is unable to estimate the financial impact it may have, or predict the reporting periods in which any such financial impacts may be recorded. Consequently, the Company has not recorded a provision for loss as of September 30, 2014 with respect to this investigation. | |
The Company is also subject to civil litigation alleging anti-competitive conduct in the U.S. and Canada. Plaintiffs in these civil antitrust class actions generally allege that the defendant suppliers of occupant safety systems have engaged in long-running global conspiracies to fix the prices of occupant safety systems or components thereof in violation of various antitrust laws and unfair or deceptive trade practice statutes. Plaintiffs in these civil antitrust class actions make allegations that extend significantly beyond the specific admissions of the Company’s DOJ plea. The Company denies these overly broad allegations. | |
Plaintiffs in the U.S. cases seek to represent purported classes of direct purchasers, auto dealers and end-payors (i.e. consumers) who purchased occupant safety systems or components either directly from a defendant or indirectly through purchases or leases of new vehicles containing such systems. Plaintiffs seek injunctive relief, treble damages, costs and attorneys’ fees. Plaintiffs in the Canadian cases seek to represent purported classes encompassing direct and indirect purchasers of such products and seek similar relief under applicable Canadian laws. | |
Specifically, the Company, several of its subsidiaries and its competitors are defendants in a total of eighteen purported antitrust class action lawsuits filed between July 2012 and October 2013. Fourteen of these lawsuits were filed in the U.S. and have been consolidated in the Occupant Safety Systems (OSS) segment of the Automobile Parts Antitrust Litigation, a Multi-District Litigation (MDL) proceeding in the United States District Court for the Eastern District of Michigan. | |
On May 30, 2014, the Company, without admitting any liability, entered into separate settlement agreements with representatives of each of the three classes of plaintiffs in the MDL. Pursuant to the settlement agreements, the Company agreed to pay $40 million to the direct purchaser settlement class, $6 million to the auto dealer settlement class, and $19 million to the end-payor settlement class, for a total of $65 million. This amount was expensed during the second quarter of 2014. In exchange, the plaintiffs agreed that the plaintiffs and the settlement classes would release Autoliv from all claims and demands that were or could have been asserted in the MDL. The direct purchaser settlement is subject to potential downward adjustments to a floor of $24 million based on the volume of Autoliv’s sales represented by direct purchasers who may elect to opt out from the direct purchaser settlement class. Each settlement can be voided if opt-outs exceed certain thresholds. On July 1, 2014, the settlements received preliminary court approval. Each settlement remains subject to final approval by the MDL Court following notice to the settlement class, an opportunity for settlement class members to object or opt out, and a fairness hearing. The deadline to opt out of the class settlement for the direct purchasers is October 30, 2014. It is currently anticipated that the fairness hearing for the direct purchaser class settlement will occur in December 2014, and that notices to the settlement classes and the fairness hearings for the other two class settlements will be deferred by the plaintiffs and the MDL Court for processing with additional, future settlements due to the cost of giving notice to large settlement classes. These settlements, if approved, will not resolve any claims of settlement class members who opt out of the settlements or the claims of any purchasers of occupant safety systems who are not otherwise included in a settlement class, such as states and municipalities. | |
The other four lawsuits are pending in Canada (Sheridan Chevrolet Cadillac Ltd. et al. v. Autoliv, Inc. et al., filed in the Ontario Superior Court of Justice on January 18, 2013; M. Serge Asselin v. Autoliv, Inc. et al., filed in the Superior Court of Quebec on March 14, 2013; Ewert v. Autoliv, Inc. et al., filed in the Supreme Court of British Columbia on July 18, 2013; and Cindy Retallick and Jagjeet Singh Rajput v. Autoliv ASP, Inc. et al., filed in the Queen’s Bench of the Judicial Center of Regina in the province of Saskatchewan on May 14, 2014). The Canadian cases assert claims on behalf of putative classes of both direct and indirect purchasers of occupant safety systems. The Company denies the overly broad allegations of these lawsuits and intends to defend itself in these cases. While it is probable that the Company will incur losses as a result of these Canadian antitrust cases, the duration or ultimate outcome of these cases currently cannot be predicted or estimated and no provision for a loss has been recorded as of September 30, 2014. There is currently no timeline for class certification or discovery in the Canadian cases. | |
On April 17, 2013, the Construction Laborers Pension Trust of Greater St. Louis (“CLPT”) filed a purported class action securities lawsuit against Autoliv and two of its officers in the United States District Court for the Southern District of New York (Civil Action File No. 13-CIV-2546) (the “Lawsuit”), and later added as a third individual defendant an employee of one of the Company’s subsidiaries. The amended complaint alleged, among other claims, misrepresentations or failures to disclose material facts that artificially inflated the Company’s stock price in violation of the federal securities laws, in particular Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, as amended. CLPT purports to bring the Lawsuit on behalf of a class of purchasers of common stock of the Company between October 26, 2010 and July 21, 2011. CLPT seeks to recover damages in an unspecified amount. | |
On June 27, 2014, the Company announced that it entered into a memorandum of understanding with CLPT reflecting an agreement in principle to settle the Lawsuit and the claims of the alleged class for a payment of $22.5 million. The parties subsequently entered into a definitive settlement agreement. The agreement is not an admission of wrongdoing or acceptance of fault by the Company or any of the individuals named in the complaint. The defendants are settling to eliminate the uncertainties, risk, distraction and expense associated with protracted litigation. The agreement is subject to final approval by the court. A hearing to approve the settlement is scheduled for the end of October 2014. If approved, the settlement will resolve the claims asserted in the Lawsuit against the Company and the individuals named in the complaint, including the claims of the settlement class members who do not opt out of the settlement. Autoliv has recorded a net expense of approximately $4.5 million in its results for the second quarter of 2014. The balance of the settlement amount will be paid by Autoliv’s insurance carrier. | |
On February 18, 2014, Henry Zwang, a purported stockholder of the Company, filed a putative derivative lawsuit against Autoliv and twelve of its current or former officers and directors in the Delaware Court of Chancery (Case No. 9359 — VCP). The complaint purports to allege claims against the individual defendants for breach of fiduciary duty, waste and unjust enrichment related to the Company’s antitrust issues. The complaint names the Company as a nominal defendant only and purports to seek monetary and other relief on behalf of Autoliv against the individual defendants. On October 3, 2014, the parties filed a stipulation of settlement that asks the Delaware court to approve a proposed settlement that will dismiss all claims in the complaint with prejudice in exchange for proposed corporate governance reforms. The court has scheduled a hearing on December 15, 2014 for approval of the settlement. | |
Product Warranty, Recalls and Intellectual Property | |
Autoliv is exposed to various claims for damages and compensation if products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected the Company faces warranty and recall claims. Where such (actual or alleged) failure results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product-liability claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer. Accordingly, the future costs of warranty claims by the customers may be material. However, the Company believes its established reserves are adequate to cover potential warranty settlements. Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts determined to be due related to these matters could differ materially from the Company’s recorded estimates. | |
In addition, the global platforms and procedures used by vehicle manufacturers have led to quality performance evaluations being conducted on an increasingly global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations. | |
The Company believes that it is currently reasonably insured against recall and product liability risks, at levels sufficient to cover potential claims that are reasonably likely to arise in the Company’s businesses based on past experience. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend or increase insurance. | |
In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material. | |
The table in Note 7 Product-Related Liabilities above summarizes the change in the balance sheet position of the product related liabilities for the three and nine months ended September 30, 2014 and September 30, 2013. |
Earnings_per_share
Earnings per share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings per share | ' | ||||||||||||||||
12 Earnings per share | |||||||||||||||||
The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of common shares outstanding for the period (net of treasury shares). When it would not be antidilutive (such as during periods of net loss), the diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the Stock Incentive Plan. | |||||||||||||||||
For the three and nine months ended September 30, 2014, there were no common shares excluded from the computation of the diluted EPS, which could potentially dilute basic EPS in the future. | |||||||||||||||||
During the nine months ended September 30, 2014 and September 30, 2013 approximately 0.4 million and 0.4 million shares, respectively, from the treasury stock have been utilized by the Stock Incentive Plan. | |||||||||||||||||
Actual weighted average shares used in calculating earnings per share were: | |||||||||||||||||
(In millions) | Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average shares basic | 91.6 | 95.8 | 92.9 | 95.7 | |||||||||||||
Effect of dilutive securities: - stock options/share awards | 0.3 | 0.4 | 0.3 | 0.3 | |||||||||||||
Weighted average shares diluted | 91.9 | 96.2 | 93.2 | 96 |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events | ' |
13 Subsequent Events | |
There were no reportable events subsequent to September 30, 2014. |
Fair_Value_Measurement_Policie
Fair Value Measurement (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Financial Instruments | ' |
the underlying debt and no swaps have a maturity beyond six months. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. | |
When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statement of Net Income along with the off-setting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statement of Net Income when the hedge transaction affects net earnings. There were no derivatives designated as hedging instruments outstanding as of September 30, 2014 and December 31, 2013. | |
The Company records derivatives at fair value. Any gains and losses on derivatives recorded at fair value are reflected in the Consolidated Statement of Net Income with the exception of cash flow hedges where an immaterial portion of the fair value is reflected in OCI. The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Derivatives with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value. | |
Under existing GAAP, there is a disclosure framework hierarchy associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: | |
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | |
Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. | |
Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | |
The Company’s derivatives are all classified as Level 2 and there have been no transfers during this or comparable periods. | |
Inventories | ' |
Inventories are stated at the lower of cost (principally FIFO) or market. | |
Restructuring Provisions | ' |
Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. | |
Warranties and Recalls | ' |
The Company records liabilities for product-related risks when probable claims are identified and when it is possible to reasonably estimate costs. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of the products sold. The provisions are recorded on an accrual basis. | |
Contingent Liabilities | ' |
Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts determined to be due related to these matters could differ materially from the Company’s recorded estimates. | |
Earnings Per Share | ' |
The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of common shares outstanding for the period (net of treasury shares). When it would not be antidilutive (such as during periods of net loss), the diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the Stock Incentive Plan. |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013. The carrying value is the same as the fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets at September 30, 2014 and in the Consolidated Balance Sheets at December 31, 2013, have been presented on a gross basis. The net amounts subject to netting agreements that the Company choose not to offset are presented in footnotes. According to the close-out netting agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||
Measurements | Measurements | ||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Nominal | Derivative | Derivative | |||||||||||||||||||
volume | asset | liability | volume | asset | liability | ||||||||||||||||||||
(Other | (Other | (Other | (Other | ||||||||||||||||||||||
current | current | current | current | ||||||||||||||||||||||
assets) | liabilities) | assets) | liabilities) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 452 | 1) | $ | 1.3 | 2) | $ | 0.5 | 3) | $ | 504.1 | 4) | $ | 1.7 | 5) | $ | 2.8 | 6) | |||||||
Total derivatives not designated as hedging instruments | $ | 452 | $ | 1.3 | $ | 0.5 | $ | 504.1 | $ | 1.7 | $ | 2.8 | |||||||||||||
1) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $309.1 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.2 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.5 million. | ||||||||||||||||||||||||
4) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $425.4 million. | ||||||||||||||||||||||||
5) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.5 million. | ||||||||||||||||||||||||
6) | Net amount after deducting for offsetting swaps under ISDA agreements is $2.6 million. | ||||||||||||||||||||||||
Fair Value of Debt | ' | ||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||
September 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Long-term debt | value1) | value | value1) | value | |||||||||||||||||||||
U.S. Private placement | $ | 1,424.80 | $ | 1,480.60 | $ | 177.6 | $ | 187.7 | |||||||||||||||||
Medium-term notes | 90.1 | 92.9 | 99.9 | 100.5 | |||||||||||||||||||||
Other long-term debt | 5.6 | 5.6 | 1.6 | 1.6 | |||||||||||||||||||||
Total | $ | 1,520.50 | $ | 1,579.10 | $ | 279.1 | $ | 289.8 | |||||||||||||||||
Short-term debt | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 100.2 | $ | 100.2 | $ | 65.6 | $ | 65.6 | |||||||||||||||||
Short-term portion of long-term debt | 150.2 | 153.6 | 167.2 | 172.6 | |||||||||||||||||||||
Notes2) | — | — | 106.6 | 107.6 | |||||||||||||||||||||
Total | $ | 250.4 | $ | 253.8 | $ | 339.4 | $ | 345.8 | |||||||||||||||||
1) | Debt as reported in balance sheet. | ||||||||||||||||||||||||
2) | Notes issued as part of the equity units offering were remarketed in April 2012, and matured on April 30, 2014. The notes were repaid and are no longer outstanding. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Components of Inventories | ' | ||||||||
Inventories are stated at the lower of cost (principally FIFO) or market. The components of inventories were as follows: | |||||||||
As of | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Raw materials | $ | 330.2 | $ | 314.8 | |||||
Work in progress | 240.8 | 232.9 | |||||||
Finished products | 202.9 | 201.9 | |||||||
Inventories | 773.9 | 749.6 | |||||||
Inventory valuation reserve | (87.4 | ) | (87.8 | ) | |||||
Total inventories, net of reserve | $ | 686.5 | $ | 661.8 |
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Schedule of Change in Balance Sheet Position of Restructuring Reserves | ' | ||||||||||||||||||||||||
Third quarter of 2014 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the third quarter of 2014 mainly related to headcount reductions in Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from June 30, 2014 to September 30, 2014. | |||||||||||||||||||||||||
June 30, | Provision/ | Provision/ | Cash | Translation | September 30, | ||||||||||||||||||||
2014 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 96.1 | $ | 8.1 | $ | (0.1 | ) | $ | (10.6 | ) | $ | (5.8 | ) | $ | 87.7 | ||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||
Total reserve | $ | 96.1 | $ | 8.1 | $ | (0.1 | ) | $ | (10.6 | ) | $ | (5.8 | ) | $ | 87.7 | ||||||||||
Second quarter of 2014 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the second quarter of 2014 mainly related to headcount reductions in Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from March 31, 2014 to June 30, 2014. | |||||||||||||||||||||||||
March 31, | Provision/ | Provision/ | Cash | Translation | June 30, | ||||||||||||||||||||
2014 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 93.4 | $ | 10.6 | $ | (0.2 | ) | $ | (6.8 | ) | $ | (0.9 | ) | $ | 96.1 | ||||||||||
Other | 0.3 | — | — | (0.3 | ) | 0 | 0 | ||||||||||||||||||
Total reserve | $ | 93.7 | $ | 10.6 | $ | (0.2 | ) | $ | (7.1 | ) | $ | (0.9 | ) | $ | 96.1 | ||||||||||
First quarter of 2014 | |||||||||||||||||||||||||
The employee-related restructuring provisions in the first quarter of 2014 mainly related to headcount reductions in Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2013 to March 31, 2014. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | March 31, | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 93.9 | $ | 5.1 | $ | (0.2 | ) | $ | (5.2 | ) | $ | (0.2 | ) | $ | 93.4 | ||||||||||
Other | 0.3 | — | — | — | 0 | 0.3 | |||||||||||||||||||
Total reserve | $ | 94.2 | $ | 5.1 | $ | (0.2 | ) | $ | (5.2 | ) | $ | (0.2 | ) | $ | 93.7 | ||||||||||
2013 | |||||||||||||||||||||||||
In 2013, the employee-related restructuring provisions mainly related to headcount reductions throughout Europe. The cash payments mainly related to high-cost countries in Europe. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2012 to December 31, 2013. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | December 31, | ||||||||||||||||||||
2012 | Charge | Reversal | payments | difference | 2013 | ||||||||||||||||||||
Restructuring employee-related | $ | 74.9 | $ | 40.4 | $ | (4.7 | ) | $ | (20.0 | ) | $ | 3.3 | $ | 93.9 | |||||||||||
Other | 0.9 | — | (0.2 | ) | (0.4 | ) | 0 | 0.3 | |||||||||||||||||
Total reserve | $ | 75.8 | $ | 40.4 | $ | (4.9 | ) | $ | (20.4 | ) | $ | 3.3 | $ | 94.2 |
ProductRelated_Liabilities_Tab
Product-Related Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Schedule of Change in Balance Sheet Position of Product-Related Liabilities | ' | ||||||||||||||||
The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions for the three and nine months ended September 30, 2014 mainly relate to recall related issues. The cash paid for the three and nine months ended September 30, 2014 mainly relate to warranty related issues. The provisions for the three months ended September 30, 2013 mainly related to warranty related issues and the provisions for the nine months ended September 30, 2013 mainly related to recall related issues. The cash paid for the three and nine months ended September 30, 2013 mainly related to warranty related issues. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reserve at beginning of the period | $ | 47.7 | $ | 37.1 | $ | 36.4 | $ | 29.9 | |||||||||
Change in reserve | 11.3 | 2.9 | 27.9 | 16.4 | |||||||||||||
Cash payments | (6.8 | ) | (2.8 | ) | (12.2 | ) | (8.5 | ) | |||||||||
Translation difference | (0.9 | ) | 0.6 | (0.8 | ) | (0.0 | ) | ||||||||||
Reserve at end of the period | $ | 51.3 | $ | 37.8 | $ | 51.3 | $ | 37.8 |
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Components of Total Net Periodic Benefit Cost | ' | ||||||||||||||||
The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 5.3 | $ | 5.6 | $ | 15.8 | $ | 16.9 | |||||||||
Interest cost | 5.2 | 4.9 | 15.9 | 14.8 | |||||||||||||
Expected return on plan assets | (5.0 | ) | (3.9 | ) | (15.0 | ) | (11.7 | ) | |||||||||
Amortization prior service credit | (0.2 | ) | (0.2 | ) | (0.6 | ) | (0.6 | ) | |||||||||
Amortization of actuarial loss | 0.7 | 3.1 | 2.2 | 9.2 | |||||||||||||
Net Periodic Benefit Cost | $ | 6 | $ | 9.5 | $ | 18.3 | $ | 28.6 |
Controlling_and_NonControlling1
Controlling and Non-Controlling interest (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Roll-Forward of Changes in Equity Attributable to Controlling and Non-Controlling Interest | ' | ||||||||||||||||||||||||
The following tables present a roll-forward of the changes in equity attributable to controlling and non-controlling interest. | |||||||||||||||||||||||||
Three Months ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Controlling | Non- | Total | Controlling | Non- | Total | ||||||||||||||||||||
controlling | controlling | ||||||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,926.90 | $ | 16.5 | $ | 3,943.40 | $ | 3,886.10 | $ | 19.7 | $ | 3,905.80 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 106.5 | 0.2 | 106.7 | 123.9 | 1 | 124.9 | |||||||||||||||||||
Foreign currency translation | (89.9 | ) | 0.2 | (89.7 | ) | 39 | 0 | 39 | |||||||||||||||||
Defined benefit pension plan | 0.4 | — | 0.4 | 1.8 | — | 1.8 | |||||||||||||||||||
Total Comprehensive Income | 17 | 0.4 | 17.4 | 164.7 | 1 | 165.7 | |||||||||||||||||||
Common Stock incentives | 3.4 | — | 3.4 | 8.8 | — | 8.8 | |||||||||||||||||||
Cash dividends declared | (48.6 | ) | — | (48.6 | ) | (48.0 | ) | — | (48.0 | ) | |||||||||||||||
Repurchased shares | (238.4 | ) | — | (238.4 | ) | — | — | — | |||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (1.5 | ) | (1.5 | ) | — | (0.0 | ) | (0.0 | ) | |||||||||||||||
Balance at end of period | $ | 3,660.30 | $ | 15.4 | $ | 3,675.70 | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 | |||||||||||||
Nine Months ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Controlling | Non- | Total | Controlling | Non- | Total | ||||||||||||||||||||
controlling | controlling | ||||||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,981.30 | $ | 19.1 | $ | 4,000.40 | $ | 3,758.60 | $ | 17.5 | $ | 3,776.10 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 319.6 | 1.4 | 321 | 386.1 | 3.3 | 389.4 | |||||||||||||||||||
Foreign currency translation | (91.8 | ) | (0.2 | ) | (92.0 | ) | (15.9 | ) | 0.3 | (15.6 | ) | ||||||||||||||
Defined benefit pension plan | 0.6 | — | 0.6 | 5.1 | — | 5.1 | |||||||||||||||||||
Total Comprehensive Income | 228.4 | 1.2 | 229.6 | 375.3 | 3.6 | 378.9 | |||||||||||||||||||
Common Stock incentives | 27.4 | — | 27.4 | 21.4 | — | 21.4 | |||||||||||||||||||
Cash dividends declared | (146.8 | ) | — | (146.8 | ) | (143.7 | ) | — | (143.7 | ) | |||||||||||||||
Repurchased shares | (430.0 | ) | — | (430.0 | ) | — | — | — | |||||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | (4.9 | ) | (4.9 | ) | — | (0.4 | ) | (0.4 | ) | |||||||||||||||
Balance at end of period | $ | 3,660.30 | $ | 15.4 | $ | 3,675.70 | $ | 4,011.60 | $ | 20.7 | $ | 4,032.30 |
Earnings_per_share_Tables
Earnings per share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Weighted Average Shares Used in Earnings Per Share Calculation | ' | ||||||||||||||||
Actual weighted average shares used in calculating earnings per share were: | |||||||||||||||||
(In millions) | Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average shares basic | 91.6 | 95.8 | 92.9 | 95.7 | |||||||||||||
Effect of dilutive securities: - stock options/share awards | 0.3 | 0.4 | 0.3 | 0.3 | |||||||||||||
Weighted average shares diluted | 91.9 | 96.2 | 93.2 | 96 |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Not Designated as Hedging Instrument, Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Nominal volume | $452 | $504.10 | ||
Other current assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative asset | 1.3 | 1.7 | ||
Other current liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative liability | 0.5 | 2.8 | ||
Less Than Six Months | Foreign Exchange Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Nominal volume | 452 | [1] | 504.1 | [2] |
Less Than Six Months | Foreign Exchange Swaps | Other current assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative asset | 1.3 | [3] | 1.7 | [4] |
Less Than Six Months | Foreign Exchange Swaps | Other current liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative liability | $0.50 | [5] | $2.80 | [6] |
[1] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $309.1 million. | |||
[2] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $425.4 million. | |||
[3] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.2 million. | |||
[4] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.5 million. | |||
[5] | Net amount after deducting for offsetting swaps under ISDA agreements is $0.5 million. | |||
[6] | Net amount after deducting for offsetting swaps under ISDA agreements is $2.6 million. |
Financial_Assets_and_Liabiliti1
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) (Not Designated as Hedging Instrument, Less Than Six Months, Fair Value, Measurements, Recurring, Other Current Assets Liabilities, Foreign Exchange Swaps, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Not Designated as Hedging Instrument | Less Than Six Months | Fair Value, Measurements, Recurring | Other Current Assets Liabilities | Foreign Exchange Swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative notional volume, amount after offsetting swaps | $309.10 | $425.40 |
Derivative asset, amount after offsetting swaps | 1.2 | 1.5 |
Derivative liability, amount after offsetting swaps | $0.50 | $2.60 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Apr. 25, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 15, 2012 | Mar. 30, 2009 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Senior Notes Five Year | Senior Notes Seven Year | Senior Notes Ten Year | Senior Notes Twelve Year | Senior Notes Fifteen Year | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Fair Value | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives designated as hedging instruments outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' |
Proceeds from interest rate swap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 1.3 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity year | ' | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2019 | ' | ' | ' | ' | ' | ' | ' |
Fair value decrease | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1.3 | ' | ' | ' | ' | ' | ' | ' |
Gain in other Financial Items, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.8 | 0.3 | 1.9 | 0.3 | ' |
Long term debt issued | ' | ' | ' | 1,250 | ' | ' | ' | ' | ' | 208 | 275 | 297 | 285 | 185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt issued, stated interest rate | ' | ' | ' | ' | ' | ' | ' | 3.85% | 8.00% | 2.84% | 3.51% | 4.09% | 4.24% | 4.44% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt issued, average interest rate | ' | ' | ' | 3.84% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '7 years | '10 years | '12 years | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserves | 87.7 | 87.7 | 96.1 | ' | 93.7 | 94.2 | 75.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87.7 |
Asset impairment charges | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Debt_Detail
Fair Value of Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' | ||
Long-term debt carrying value | $1,520.50 | [1] | $279.10 | [1] |
Long-term debt, fair value | 1,579.10 | 289.8 | ||
Short-term debt carrying value | 250.4 | [1] | 339.4 | [1] |
Short-term debt, fair value | 253.8 | 345.8 | ||
U.S. Private Placement - Long-Term Debt | ' | ' | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' | ||
Long-term debt carrying value | 1,424.80 | [1] | 177.6 | [1] |
Long-term debt, fair value | 1,480.60 | 187.7 | ||
Medium-term Notes | ' | ' | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' | ||
Long-term debt carrying value | 90.1 | [1] | 99.9 | [1] |
Long-term debt, fair value | 92.9 | 100.5 | ||
Other Long-Term Debt | ' | ' | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' | ||
Long-term debt carrying value | 5.6 | [1] | 1.6 | [1] |
Long-term debt, fair value | 5.6 | 1.6 | ||
Overdrafts and Other Short-Term Debt | ' | ' | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' | ||
Short-term debt carrying value | 100.2 | [1] | 65.6 | [1] |
Short-term debt, fair value | 100.2 | 65.6 | ||
Short-Term Portion of Long-Term Debt | ' | ' | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' | ||
Short-term debt carrying value | 150.2 | [1] | 167.2 | [1] |
Short-term debt, fair value | 153.6 | 172.6 | ||
Notes Short-Term Debt | ' | ' | ||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ' | ' | ||
Short-term debt carrying value | ' | 106.6 | [1],[2] | |
Short-term debt, fair value | ' | $107.60 | [2] | |
[1] | Debt as reported in balance sheet. | |||
[2] | Notes issued as part of the equity units offering were remarketed in April 2012, and matured on April 30, 2014. The notes were repaid and are no longer outstanding. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | ' | 30.80% | 27.80% |
Increase/(decrease) in effective tax rate due to impact of discrete tax items | ' | 0.40% | -0.50% |
Unrecognized tax benefits, increases resulting from current and prior period tax positions | $0.40 | ' | ' |
Total unrecognized tax benefits | 23.2 | 23.2 | ' |
Unrecognized tax payable, current | ' | 5.2 | ' |
Unrecognized tax payable, non-current | ' | $18 | ' |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $330.20 | $314.80 |
Work in progress | 240.8 | 232.9 |
Finished products | 202.9 | 201.9 |
Inventories | 773.9 | 749.6 |
Inventory valuation reserve | -87.4 | -87.8 |
Total inventories, net of reserve | $686.50 | $661.80 |
Schedule_of_Changes_in_Balance
Schedule of Changes in Balance Sheet Position of Restructuring Reserves (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | $96.10 | $93.70 | $94.20 | $75.80 |
Provision/ Charge | 8.1 | 10.6 | 5.1 | 40.4 |
Provision/ Reversal | -0.1 | -0.2 | -0.2 | -4.9 |
Cash payments | -10.6 | -7.1 | -5.2 | -20.4 |
Translation difference | -5.8 | -0.9 | -0.2 | 3.3 |
Restructuring reserve, ending balance | 87.7 | 96.1 | 93.7 | 94.2 |
Restructuring employee-related | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | 96.1 | 93.4 | 93.9 | 74.9 |
Provision/ Charge | 8.1 | 10.6 | 5.1 | 40.4 |
Provision/ Reversal | -0.1 | -0.2 | -0.2 | -4.7 |
Cash payments | -10.6 | -6.8 | -5.2 | -20 |
Translation difference | -5.8 | -0.9 | -0.2 | 3.3 |
Restructuring reserve, ending balance | 87.7 | 96.1 | 93.4 | 93.9 |
Other Restructuring | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring reserve, beginning balance | ' | 0.3 | 0.3 | 0.9 |
Provision/ Reversal | ' | ' | ' | -0.2 |
Cash payments | ' | -0.3 | ' | -0.4 |
Translation difference | ' | 0 | 0 | 0 |
Restructuring reserve, ending balance | ' | $0 | $0.30 | $0.30 |
Summary_of_Change_in_Balance_S
Summary of Change in Balance Sheet Position of Product-Related Liabilities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Product Liability Contingency [Line Items] | ' | ' | ' | ' |
Reserve at beginning of the period | $47.70 | $37.10 | $36.40 | $29.90 |
Change in reserve | 11.3 | 2.9 | 27.9 | 16.4 |
Cash payments | -6.8 | -2.8 | -12.2 | -8.5 |
Translation difference | -0.9 | 0.6 | -0.8 | 0 |
Reserve at end of the period | $51.30 | $37.80 | $51.30 | $37.80 |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (Pension Plans, Defined Benefit, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Plans, Defined Benefit | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | $5.30 | $5.60 | $15.80 | $16.90 |
Interest cost | 5.2 | 4.9 | 15.9 | 14.8 |
Expected return on plan assets | -5 | -3.9 | -15 | -11.7 |
Amortization prior service credit | -0.2 | -0.2 | -0.6 | -0.6 |
Amortization of actuarial loss | 0.7 | 3.1 | 2.2 | 9.2 |
Net Periodic Benefit Cost | $6 | $9.50 | $18.30 | $28.60 |
Equity_Units_Offering_Addition
Equity Units Offering - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2009 | Apr. 30, 2012 | Jun. 30, 2010 | Sep. 30, 2014 | Mar. 15, 2012 | Mar. 30, 2009 | |
Equity and Equity Units Offering Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Common shares sold from treasury stock | 14,700,000 | ' | ' | ' | ' | ' |
Equity units number issued, units | ' | ' | ' | ' | ' | 6,600,000 |
Common shares sold aggregate stated amount | $235,000,000 | $106,273,000 | ' | ' | ' | ' |
Equity units sold aggregate public offering price | ' | ' | ' | ' | ' | 165,000,000 |
Forward purchase price contract obligation per share | ' | ' | ' | ' | ' | $25 |
Undivided beneficial ownership interest | ' | ' | ' | ' | ' | 2.50% |
Senior notes principal amount | ' | ' | ' | ' | ' | $1,000 |
Senior notes interest rate | ' | ' | ' | ' | 3.85% | 8.00% |
Purchase contract settlement date | ' | ' | ' | '2012-04-30 | ' | ' |
Senior notes maturity | ' | ' | ' | '2014 | ' | ' |
Allocation of underwriting commissions as deferred charges | ' | ' | ' | ' | ' | 1.00% |
Underwriting commissions paid, total | ' | ' | ' | ' | ' | 6.00% |
Senior notes, final maturity date after which reset interest rate is applicable | ' | ' | ' | 30-Apr-14 | ' | ' |
Senior notes coupon yield per annum | ' | ' | ' | ' | 2.88% | ' |
Equity units outstanding | ' | 4,250,920 | ' | ' | ' | ' |
Common shares issued in exchange for equity units | ' | ' | 2,300,000 | ' | ' | ' |
Shares issued in exchange under purchase contracts | ' | 5,800,000 | ' | ' | ' | ' |
RollForward_of_Changes_in_Equi
Roll-Forward of Changes in Equity Attributable to Controlling and Non-Controlling Interest (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | $3,943.40 | $3,905.80 | $4,000.40 | $3,776.10 |
Total Comprehensive Income: | ' | ' | ' | ' |
Net income | 106.7 | 124.9 | 321 | 389.4 |
Foreign currency translation | -89.7 | 39 | -92 | -15.6 |
Defined benefit pension plan | 0.4 | 1.8 | 0.6 | 5.1 |
Comprehensive income | 17.4 | 165.7 | 229.6 | 378.9 |
Common Stock incentives | 3.4 | 8.8 | 27.4 | 21.4 |
Cash dividends declared | -48.6 | -48 | -146.8 | -143.7 |
Repurchased shares | -238.4 | ' | -430 | ' |
Dividends paid to non-controlling interests on subsidiary shares | -1.5 | 0 | -4.9 | -0.4 |
Balance at end of period | 3,675.70 | 4,032.30 | 3,675.70 | 4,032.30 |
Controlling | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | 3,926.90 | 3,886.10 | 3,981.30 | 3,758.60 |
Total Comprehensive Income: | ' | ' | ' | ' |
Net income | 106.5 | 123.9 | 319.6 | 386.1 |
Foreign currency translation | -89.9 | 39 | -91.8 | -15.9 |
Defined benefit pension plan | 0.4 | 1.8 | 0.6 | 5.1 |
Comprehensive income | 17 | 164.7 | 228.4 | 375.3 |
Common Stock incentives | 3.4 | 8.8 | 27.4 | 21.4 |
Cash dividends declared | -48.6 | -48 | -146.8 | -143.7 |
Repurchased shares | -238.4 | ' | -430 | ' |
Balance at end of period | 3,660.30 | 4,011.60 | 3,660.30 | 4,011.60 |
Noncontrolling Interest | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | 16.5 | 19.7 | 19.1 | 17.5 |
Total Comprehensive Income: | ' | ' | ' | ' |
Net income | 0.2 | 1 | 1.4 | 3.3 |
Foreign currency translation | 0.2 | 0 | -0.2 | 0.3 |
Comprehensive income | 0.4 | 1 | 1.2 | 3.6 |
Dividends paid to non-controlling interests on subsidiary shares | -1.5 | 0 | -4.9 | -0.4 |
Balance at end of period | $15.40 | $20.70 | $15.40 | $20.70 |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) | 0 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
Jun. 06, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Jun. 27, 2014 | Jun. 30, 2014 | |
USD ($) | Defendant | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | Ontario and Quebec Superior Court | Brazilian Subsidiaries | Brazilian Subsidiaries | Brazilian Subsidiaries | Construction Laborers Pension Trust of Greater St. Louis (CLPT) | Construction Laborers Pension Trust of Greater St. Louis (CLPT) | |
Employee | USD ($) | Defendant | Direct purchaser settlement class | Direct purchaser settlement class | Auto dealer settlement class | End-payor settlement class | Defendant | USD ($) | Subsequent Event | Subsequent Event | USD ($) | USD ($) | ||
Defendant | Maximum | Minimum | USD ($) | USD ($) | USD ($) | BRL | ||||||||
USD ($) | USD ($) | |||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate assessment for all alleged violations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $22,600,000 | 55,000,000 | ' | ' |
Provision for loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Cash paid for litigation settlements | 14,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500,000 | ' |
Number of employees impacted | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of defendants in antitrust class actions | ' | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of pending antitrust class actions | ' | ' | ' | 14 | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' |
Number of classes of plaintiffs | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense related settlement agreements | ' | ' | $65,000,000 | ' | $40,000,000 | $24,000,000 | $6,000,000 | $19,000,000 | ' | ' | ' | ' | ' | $4,500,000 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' |
Potentially dilutive shares not included in the computation of the diluted EPS | 0 | 0 | ' |
Shares from treasury stock utilized by Stock Incentive Plan | ' | 0.4 | 0.4 |
Schedule_of_Actual_Weighted_Av
Schedule of Actual Weighted Average Shares Used in Calculating Earnings Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ' | ' | ' | ' |
Weighted average shares basic | 91.6 | 95.8 | 92.9 | 95.7 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options/share awards | 0.3 | 0.4 | 0.3 | 0.3 |
Weighted average shares diluted | 91.9 | 96.2 | 93.2 | 96 |