Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 16, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ALV | ||
Entity Registrant Name | AUTOLIV INC | ||
Entity Central Index Key | 1034670 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 88,701,893 | ||
Entity Public Float | $9,894 |
Consolidated_Statements_of_Net
Consolidated Statements of Net Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net sales | $9,240.50 | $8,803.40 | $8,266.70 | |||
Cost of sales | -7,436.70 | -7,098.80 | -6,620.50 | |||
Gross profit | 1,803.80 | 1,704.60 | 1,646.20 | |||
Selling, general and administrative expenses | -414.9 | -389.9 | -366.7 | |||
Research, development and engineering expenses, net | -535.6 | -489.3 | -455.4 | |||
Amortization of intangibles | -16 | -20.4 | -20.2 | |||
Other income (expense), net | -114.7 | -43.6 | -98.5 | |||
Operating income | 722.6 | 761.4 | 705.4 | |||
Income from equity method investments | 6.9 | 7.3 | 8.1 | |||
Interest income | 4.8 | 3.9 | 3.4 | |||
Interest expense | -63.4 | -32.9 | -41.7 | |||
Other non-operating items, net | -3.9 | -5.7 | -6.6 | |||
Income before income taxes | 667 | 734 | 668.6 | |||
Income tax expense | -198 | -244.1 | -183 | |||
Net income | 469 | [1] | 489.9 | [1] | 485.6 | [1] |
Less: Net income attributable to non-controlling interest | 1.2 | 4.1 | 2.5 | |||
Net income attributable to controlling interest | $467.80 | $485.80 | $483.10 | |||
Earnings per common share | ||||||
- basic | $5.08 | $5.09 | $5.17 | |||
- assuming dilution | $5.06 | $5.07 | $5.08 | |||
Weighted average number of shares | ||||||
- basic | 92.1 | 95.5 | 93.5 | |||
- assuming dilution | 92.4 | 95.9 | 95.1 | |||
Cash dividend per share-declared | $2.14 | $2.02 | $1.94 | |||
Cash dividend per share-paid | $2.12 | $2 | $1.89 | |||
[1] | See Note 13 for further details - includes tax effects where applicable. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net income | $469 | [1] | $489.90 | [1] | $485.60 | [1] |
Other comprehensive (loss) income before tax: | ||||||
Change in cumulative translation adjustment | -204.9 | -17.4 | 28.1 | |||
Net change in unrealized components of defined benefit plans | -71 | 97.1 | -40.6 | |||
Other comprehensive (loss) income , before tax | -275.9 | 79.7 | -12.5 | |||
Benefit (cost) for taxes related to defined benefit plans | 22 | -38.3 | 14.5 | |||
Other comprehensive income, net of tax | -253.9 | 41.4 | 2 | |||
Comprehensive income | 215.1 | [1] | 531.3 | [1] | 487.6 | [1] |
Less: Comprehensive income attributable to non-controlling interest | 0.8 | 4.5 | 2.7 | |||
Comprehensive income attributable to controlling interest | $214.30 | $526.80 | $484.90 | |||
[1] | See Note 13 for further details - includes tax effects where applicable. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $1,529 | $1,118.30 | ||
Receivables, net | 1,706.30 | 1,688 | ||
Inventories, net | 675.5 | 661.8 | ||
Income tax receivables | 54.6 | 56 | ||
Prepaid expenses | 95.4 | 86.1 | ||
Other current assets | 75.4 | 90.2 | ||
Total current assets | 4,136.20 | 3,700.40 | ||
Property, plant and equipment, net | 1,390.20 | 1,336.20 | ||
Investments and other non-current assets | 255.3 | 259 | ||
Goodwill | 1,594 | 1,610.10 | ||
Intangible assets, net | 67.2 | 77.3 | ||
Total assets | 7,442.90 | 6,983 | ||
Liabilities and equity | ||||
Short-term debt | 79.6 | [1] | 339.4 | [1] |
Accounts payable | 1,091.50 | 1,199.90 | ||
Accrued expenses | 720.1 | 633.9 | ||
Income tax payable | 69.1 | 74.8 | ||
Other current liabilities | 178.3 | 180.5 | ||
Total current liabilities | 2,138.60 | 2,428.50 | ||
Long-term debt | 1,521.20 | [1] | 279.1 | [1] |
Pension liability | 232.5 | 147.3 | ||
Other non-current liabilities | 108.5 | 127.7 | ||
Total non-current liabilities | 1,862.20 | 554.1 | ||
Commitments and contingencies | ||||
Common stock | 102.8 | [2] | 102.8 | [2] |
Additional paid-in capital | 1,329.30 | 1,329.30 | ||
Retained earnings | 3,240 | 2,965.90 | ||
Accumulated other comprehensive (loss) income | -253 | [3] | 0.5 | [3] |
Treasury stock (14.1 and 8.4 shares, respectively) | -992 | -417.2 | ||
Total parent shareholders' equity | 3,427.10 | 3,981.30 | ||
Non-controlling interest | 15 | 19.1 | ||
Total equity | 3,442.10 | [4] | 4,000.40 | [4] |
Total liabilities and equity | $7,442.90 | $6,983 | ||
[1] | Debt as reported in balance sheet. | |||
[2] | Number of shares: 350 million authorized, 102.8 million issued for both years, and 88.7 and 94.4 million outstanding, net of treasury shares, for 2014 and 2013, respectively. | |||
[3] | The components of Other Comprehensive Income (Loss) are net of any related income tax effects. | |||
[4] | See Note 13 for further details - includes tax effects where applicable. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Treasury stock, Shares | 14.1 | 8.4 |
Common stock, shares authorized | 350 | 350 |
Common stock, shares issued | 102.8 | 102.8 |
Common stock, shares outstanding | 88.7 | 94.4 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Operating activities | ||||||
Net income | $469 | [1] | $489.90 | [1] | $485.60 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 305.4 | 286 | 273.2 | |||
Deferred income taxes | -0.8 | 35.2 | -31.8 | |||
Undistributed income from equity method investments, net of dividends | -3.4 | -2.7 | -3.3 | |||
Net change in: | ||||||
Receivables and other assets, gross | -143.1 | -245.5 | -48.4 | |||
Inventories, gross | -69.8 | -63.6 | 6.9 | |||
Accounts payable and accrued expenses | 106.9 | 299.7 | -28 | |||
Income taxes | 3.3 | 28.2 | -10.6 | |||
Other, net | 45.2 | 10.7 | 44.9 | |||
Net cash provided by operating activities | 712.7 | 837.9 | 688.5 | |||
Investing activities | ||||||
Expenditures for property, plant and equipment | -456 | -385.6 | -365.4 | |||
Proceeds from sale of property, plant and equipment | 2.6 | 6.3 | 5 | |||
Acquisition of businesses, net of cash acquired | -1.4 | -2 | -1.8 | |||
Net proceeds from divestitures | 2.4 | 5.2 | ||||
Other | -0.6 | 3.9 | -1.2 | |||
Net cash used in investing activities | -453 | -377.4 | -358.2 | |||
Financing activities | ||||||
Net (decrease) increase in short-term debt | -252.7 | 272.8 | -119.8 | |||
Issuance of long-term debt | 1,263 | 98.5 | ||||
Repayments and other changes in long-term debt | -1.2 | -277.3 | -9.4 | |||
Dividends paid to non-controlling interest | -4.9 | -3.3 | -0.8 | |||
Dividends paid | -194.9 | -191 | -177.6 | |||
Shares repurchased | -616 | -147.9 | ||||
Common stock and purchase contract issue | 106.3 | |||||
Common stock options exercised | 32.5 | 27 | 12.9 | |||
Capital contribution from non-controlling interest | 0.4 | |||||
Other, net | 0.5 | 1 | -1.4 | |||
Net cash provided by (used in) financing activities | 226.3 | -318.3 | -91.3 | |||
Effect of exchange rate changes on cash and cash equivalents | -75.3 | -1.6 | -0.5 | |||
Increase in cash and cash equivalents | 410.7 | 140.6 | 238.5 | |||
Cash and cash equivalents at beginning of year | 1,118.30 | 977.7 | 739.2 | |||
Cash and cash equivalents at end of year | $1,529 | $1,118.30 | $977.70 | |||
[1] | See Note 13 for further details - includes tax effects where applicable. |
Consolidated_Statements_of_Tot
Consolidated Statements of Total Equity (USD $) | Total | Common stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive(loss) income | Treasury stock | Total parent shareholders' equity | Non-controlling interest | ||
In Millions, unless otherwise specified | ||||||||||
Balance at Dec. 31, 2011 | $3,349 | [1] | $102.80 | $1,472.80 | $2,374.60 | ($42.30) | ($574.50) | $3,333.40 | $15.60 | |
Balance, shares at Dec. 31, 2011 | 102.8 | |||||||||
Comprehensive Income: | ||||||||||
Net income | 485.6 | [1] | 483.1 | 483.1 | 2.5 | |||||
Foreign currency translation | 28.1 | [1] | 27.9 | 27.9 | 0.2 | |||||
Pension liability | -26.1 | [1] | -26.1 | -26.1 | ||||||
Comprehensive income | 487.6 | [1] | 484.9 | 2.7 | ||||||
Common stock incentives | [2] | 20.7 | [1] | 20.7 | 20.7 | |||||
Cash dividends declared | -185.2 | [1] | -185.2 | -185.2 | ||||||
Common stock issuance, net | 104.8 | [1] | -143.5 | 248.3 | 104.8 | |||||
Dividends paid to non-controlling interest on subsidiary shares | -0.8 | [1] | -0.8 | |||||||
Balance at Dec. 31, 2012 | 3,776.10 | [1] | 102.8 | 1,329.30 | 2,672.50 | -40.5 | -305.5 | 3,758.60 | 17.5 | |
Balance, shares at Dec. 31, 2012 | 102.8 | |||||||||
Comprehensive Income: | ||||||||||
Net income | 489.9 | [1] | 485.8 | 485.8 | 4.1 | |||||
Foreign currency translation | -17.4 | [1] | -17.8 | -17.8 | 0.4 | |||||
Pension liability | 58.8 | [1] | 58.8 | 58.8 | ||||||
Comprehensive income | 531.3 | [1] | 526.8 | 4.5 | ||||||
Common stock incentives | [2] | 36.2 | [1] | 36.2 | 36.2 | |||||
Cash dividends declared | -192.4 | [1] | -192.4 | -192.4 | ||||||
Repurchased shares | -147.9 | [1] | -147.9 | -147.9 | ||||||
Dividends paid to non-controlling interest on subsidiary shares | -3.3 | [1] | -3.3 | |||||||
Investment in subsidiary by non-controlling interest | 0.4 | [1] | 0.4 | |||||||
Balance at Dec. 31, 2013 | 4,000.40 | [1] | 102.8 | 1,329.30 | 2,965.90 | 0.5 | -417.2 | 3,981.30 | 19.1 | |
Balance, shares at Dec. 31, 2013 | 102.8 | 102.8 | ||||||||
Comprehensive Income: | ||||||||||
Net income | 469 | [1] | 467.8 | 467.8 | 1.2 | |||||
Foreign currency translation | -204.9 | [1] | -204.5 | -204.5 | -0.4 | |||||
Pension liability | -49 | [1] | -49 | -49 | ||||||
Comprehensive income | 215.1 | [1] | 214.3 | 0.8 | ||||||
Common stock incentives | [2] | 41.2 | [1] | 41.2 | 41.2 | |||||
Cash dividends declared | -193.7 | [1] | -193.7 | -193.7 | ||||||
Repurchased shares | -616 | [1] | -616 | -616 | ||||||
Dividends paid to non-controlling interest on subsidiary shares | -4.9 | [1] | -4.9 | |||||||
Balance at Dec. 31, 2014 | $3,442.10 | [1] | $102.80 | $1,329.30 | $3,240 | ($253) | ($992) | $3,427.10 | $15 | |
Balance, shares at Dec. 31, 2014 | 102.8 | 102.8 | ||||||||
[1] | See Note 13 for further details - includes tax effects where applicable. | |||||||||
[2] | See Notes 1 and 15 for further details - includes tax effects. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies |
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) | |
NATURE OF OPERATIONS | |
Through its operating subsidiaries, Autoliv is a supplier of automotive safety systems with a broad range of product offerings, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts, steering wheels, safety electronics, whiplash protection systems and child seats, as well as active safety systems such as night vision, radar and other vision systems. | |
PRINCIPLES OF CONSOLIDATION | |
The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include Autoliv, Inc. and all companies over which Autoliv, Inc. directly or indirectly exercises control, which as a general rule means that the Company owns more than 50% of the voting rights. | |
Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or right to receive benefits from the VIE that could be significant to the VIE. | |
All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. | |
Investments in affiliated companies in which the Company exercises significant influence over the operations and financial policies, but does not control, are reported using the equity method of accounting, and therefore does not consolidate. Generally, the Company owns between 20 and 50 percent of such investments. | |
BUSINESS COMBINATIONS | |
Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their full fair values as of the date control is obtained, regardless of the percentage ownership in the acquired entity or how the acquisition was achieved. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent considerations are recognized and measured at fair value at the acquisition date and classified as either liabilities or equity based on appropriate GAAP. | |
USE OF ESTIMATES | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of retroactive price adjustments, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and product liabilities, restructuring charges, uncertain tax positions, valuation allowances and legal proceedings. Actual results could differ from those estimates. | |
REVENUE RECOGNITION | |
Revenues are recognized when there is evidence of a sales agreement, delivery of goods has occurred, the sales price is fixed and determinable and the collectability of revenue is reasonably assured. The Company records revenue from the sale of manufactured products upon shipment to customers and transfer of title and risk of loss under standard commercial terms (typically F.O.B. shipping point). In those limited instances where other terms are negotiated and agreed, revenue is recorded when title and risk of loss are transferred to the customer. | |
Accruals are made for retroactive price adjustments when probable and able to be reasonably estimated. | |
Net sales exclude taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers. | |
COST OF SALES | |
Shipping and handling costs are included in Cost of sales in the Consolidated Statements of Net Income. Contracts to supply products which extend for periods in excess of one year are reviewed when conditions indicate that costs may exceed selling prices, resulting in losses. Losses on long-term supply contracts are recognized when probable and estimable. | |
RESEARCH, DEVELOPMENT AND ENGINEERING (R,D&E) | |
Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of income from contracts to perform engineering design and product development services. Such income is not significant in any period presented. | |
Certain engineering expenses related to long-term supply arrangements are capitalized when the defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. The aggregate amount of such assets is not significant in any period presented. | |
Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer-funded tooling are met or the criteria for capitalization as Property, Plant & Equipment (P,P&E) for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Net Income as Cost of sales. | |
STOCK BASED COMPENSATION | |
The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation—Stock Compensation. The Company records the compensation expense for Restricted Stock Units (RSUs), awards under the Stock Incentive Plan, and stock options over the vesting period. | |
INCOME TAXES | |
Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or refundable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. Current and non-current components of deferred tax balances are reported separately based on financial statement classification of the related asset or liability giving rise to the temporary difference. If a deferred tax asset or liability is not related to an asset or liability that exists for financial reporting purposes, including deferred tax assets related to carryforwards, the deferred tax asset or liability would be classified based on the expected reversal date of the temporary differences. Tax assets and liabilities are not offset unless attributable to the same tax jurisdiction and netting is possible according to law and expected to take place in the same period. | |
Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized and measured in the financial statements when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax bene-fits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized and measured if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. | |
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 and for common stock issued upon conversion of the equity units. | |
CASH EQUIVALENTS | |
The Company considers all highly liquid investment instruments purchased with a maturity of three months or less to be cash equivalents. | |
RECEIVABLES | |
The Company has guidelines for calculating the allowance for bad debts. In determining the amount of a bad debt allowance, management uses its judgment to consider factors such as the age of the receivables, the Company’s prior experience with the customer, the experience of other enterprises in the same industry, the customer’s ability to pay, and/or an appraisal of current economic conditions. Collateral is typically not required. There can be no assurance that the amount ultimately realized for receivables will not be materially different than that assumed in the calculation of the allowance. | |
FINANCIAL INSTRUMENTS | |
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 use of such derivatives is in accordance with the strategies contained in the Company’s overall financial policy. The derivatives outstanding at year-end are foreign exchange swaps. All swaps principally match the terms and maturity of the underlying debt and no swaps have a maturity beyond 2015. | |
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 Statements of Net Income along with the offsetting 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 Statements of Net Income when the hedge transaction affects net earnings. There were no material reclassifications from OCI to the Consolidated Statements of Net Income in 2014 and, likewise, no material reclassifications are expected in 2015. Any ineffectiveness has been immaterial. | |
For further details on the Company’s financial instruments, see Note 3. | |
INVENTORIES | |
The cost of inventories is computed according to the first-in, first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost or market, with the market generally defined as net realizable value for finished goods and replacement cost for raw materials and work-in-process. Excess inventories are | |
quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. | |
PROPERTY, PLANT AND EQUIPMENT | |
Property, Plant and Equipment are recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives. Depreciation on capital leases is recognized in the Consolidated Statements of Net Income over the shorter of the assets’ expected life or the lease contract terms. Repairs and maintenance are expensed as incurred. | |
The Company evaluates the carrying value of long-lived assets other than goodwill when indications of impairment are evident. Impairment testing is primarily done by using the cash flow method based on undiscounted future cash flows. | |
GOODWILL AND INTANGIBLE ASSETS | |
Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized, but is subject to at least an annual review for impairment. Other intangible assets, principally related to acquired technology and contractual relationships, are amortized over their useful lives which range from 3 to 25 years. | |
As of December 31, 2014 and 2013, the Company had goodwill of approximately $1.6 billion which nearly all is associated with the reporting unit Passive Safety Systems. Approximately $1.2 billion is goodwill associated with the 1997 merger of Autoliv AB and the Automotive Safety Products Division of Morton International, Inc. The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. The impairment testing of goodwill is based on two different reporting units: 1) Passive Safety Systems and 2) Active Safety Systems. | |
In conducting its impairment testing, the Company compares the estimated fair value of each of its reporting units to the related carrying value of the reporting unit. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its estimated fair value, an impairment loss is measured and recognized by the amount which the carrying amount of the goodwill exceeds the implied fair value of the goodwill determined by assigning the fair value of the reporting unit to all of the assets and liabilities of that unit. | |
The estimated fair value of the reporting unit is determined by the discounted cash flow method taking into account expected long-term operating cash-flow performance. The Company discounts projected operating cash flows using its weighted average cost of capital, including a risk premium to adjust for market risk. The estimated fair value is based on automotive industry volume projections which are based on third-party and internally developed forecasts and discount rate assumptions. Significant assumptions include terminal growth rates, terminal operating margin rates, future capital expenditures and working capital requirements. | |
To supplement this analysis, the Company compares the market value of its equity, calculated by reference to the quoted market prices of its shares, to the book value of its equity. | |
There were no impairments of goodwill from 2012 through 2014. | |
INSURANCE DEPOSITS | |
The Company has entered into liability and recall insurance contracts to mitigate the risk of costs associated with product recalls. These are accounted for under the deposit method of accounting based on the existing contractual terms. | |
WARRANTIES AND RECALLS | |
The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs typically include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the defective part. | |
Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. | |
RESTRUCTURING PROVISIONS | |
The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. | |
Estimates of restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates that re-structuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. | |
PENSION OBLIGATIONS | |
The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefit that each employee will receive for services performed during a specified period of employment. | |
The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any) (see Note 18). The plan assets are measured at fair value. The inputs to the fair value measurement of the plan assets are mainly level 2 inputs (see Note 3). | |
CONTINGENT LIABILITIES | |
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 or other matters (see Note 16). | |
The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. | |
The Company records liabilities for claims, lawsuits and proceedings when they are probable and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. | |
The Company believes, based on currently available information, that the resolution of outstanding matters, other than the antitrust matters described in Note 16, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. | |
However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. | |
TRANSLATION OF NON-U.S. SUBSIDIARIES | |
The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end rates of exchange. | |
The statement of operations of these subsidiaries is translated into U.S. dollars at the average rates of exchange for the year. Translation differences are reflected in equity as a component of OCI. | |
RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES | |
Receivables and liabilities not denominated in functional currencies are converted at year-end rates of exchange. Net transaction gains/(losses), reflected in the Consolidated Statements of Net Income amounted to $(3.8) million in 2014, $(26.3) million in 2013 and $(5.6) million in 2012, and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other financial items, net if they relate to financial receivables and liabilities. | |
RECENTLY ISSUED 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. | |
RECLASSIFICATIONS | |
Certain prior-year amounts have been reclassified to conform to current year presentation. |
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations | 2. Business Combinations |
Business combinations generally take place to either gain key technology or strengthen Autoliv’s position in a certain geographical area or with a certain customer. | |
No significant business combinations have taken place during 2014 or 2013. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Measurements | 3. Fair Value Measurements | ||||||||||||||||||||||||
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS | |||||||||||||||||||||||||
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 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 December 31, 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 Statements 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 Statements of Net Income when the hedge transaction affects net earnings. | |||||||||||||||||||||||||
The Company records derivatives at fair value. Any gains and losses on derivatives recorded at fair value are reflected in the Consolidated Statements 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 table below presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 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 Consolidated Balance Sheets at December 31, 2014 and 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. | |||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED | Nominal | Derivative asset | Derivative liability | Nominal | Derivative asset | Derivative liability | |||||||||||||||||||
AS HEDGING INSTRUMENTS | volume | (Other current | (Other current | volume | (Other current | (Other current | |||||||||||||||||||
assets) | liabilities) | assets) | liabilities) | ||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 459.1 | 1) | $ | 1.3 | 2) | $ | 0.4 | 3) | $ | 504.1 | 4) | $ | 1.7 | 5) | $ | 2.8 | 6) | |||||||
TOTAL | $ | 459.1 | $ | 1.3 | $ | 0.4 | $ | 504.1 | $ | 1.7 | $ | 2.8 | |||||||||||||
1) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 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 December 31, 2014 and December 31, 2013. During 2014 there were no derivatives designated as hedging instruments. During the first quarter of 2013 the Company closed a $60 million interest rate swap which was designated as a hedging instrument. For 2013 the gains and losses recognized in other non-operating items, net were immaterial. For 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 related to this note declined by $1.3 million decreasing interest expense and thus fully offsetting the loss related to the hedging instrument. | |||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||||||||||||||||||
All amounts recognized in the Consolidated Statements 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 Statements of Net Income effect of the related financial liabilities or financial assets. The derivatives not designated as hedging instruments outstanding at December 31, 2014 were foreign exchange swaps. For 2014 the gains and losses recognized in other non-operating items, net were a gain of $2.0 million for derivative instruments not designated as hedging instruments. For 2013 the Company recognized a loss of $1.1 million in other non-operating items, net for derivative instruments not designated as hedging instruments. For 2014 and 2013, the gains and losses recognized as interest expense were immaterial. | |||||||||||||||||||||||||
FAIR VALUE OF DEBT | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
31-Dec-14 | DECEMBER 31, 2014 | DECEMBER 31, 2013 | DECEMBER 31, 2013 | ||||||||||||||||||||||
CARRYING VALUE1) | FAIR VALUE | CARRYING VALUE1) | FAIR VALUE | ||||||||||||||||||||||
LONG-TERM DEBT | |||||||||||||||||||||||||
U.S. Private placement | $ | 1,424.20 | $ | 1,510.20 | $ | 177.6 | $ | 187.7 | |||||||||||||||||
Medium-term notes | 83.2 | 86.3 | 99.9 | 100.5 | |||||||||||||||||||||
Other long-term debt | 13.8 | 13.8 | 1.6 | 1.6 | |||||||||||||||||||||
TOTAL | $ | 1,521.20 | $ | 1,610.30 | $ | 279.1 | $ | 289.8 | |||||||||||||||||
SHORT-TERM DEBT | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 57.8 | $ | 57.8 | $ | 65.6 | $ | 65.6 | |||||||||||||||||
Short-term portion of long-term debt | 21.8 | 21.8 | 167.2 | 172.6 | |||||||||||||||||||||
Notes2) | — | — | 106.6 | 107.6 | |||||||||||||||||||||
TOTAL | $ | 79.6 | $ | 79.6 | $ | 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. | ||||||||||||||||||||||||
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 10). | |||||||||||||||||||||||||
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 December 31, 2014, the Company had $79.8 million of restructuring reserves which were measured at fair value upon initial recognition of the associated liability (see Note 10). For 2014 the Company did not record any impairment charges on its long-lived assets. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | 4. Income Taxes | ||||||||||||
INCOME BEFORE INCOME TAXES | 2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 59.5 | $ | 169.4 | $ | 171.2 | |||||||
Non-U.S. | 607.5 | 564.6 | 497.4 | ||||||||||
Total | $ | 667 | $ | 734 | $ | 668.6 | |||||||
PROVISION FOR INCOME TAXES | 2014 | 2013 | 2012 | ||||||||||
Current | |||||||||||||
U.S. federal | $ | 32.2 | $ | 42.7 | $ | 62.8 | |||||||
Non-U.S. | 166.2 | 164.7 | 146.2 | ||||||||||
U.S. state and local | 0.4 | 1.6 | 5.8 | ||||||||||
Deferred | |||||||||||||
U.S. federal | (3.2 | ) | 11.7 | 0.2 | |||||||||
Non-U.S. | 2.9 | 22.2 | (29.6 | ) | |||||||||
U.S. state and local | (0.5 | ) | 1.2 | (2.4 | ) | ||||||||
Total income tax expense (benefit) | $ | 198 | $ | 244.1 | $ | 183 | |||||||
EFFECTIVE INCOME TAX RATE | 2014 | 2013 | 2012 | ||||||||||
U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign tax rate variances | (8.5 | ) | (8.2 | ) | (7.6 | ) | |||||||
Tax credits | (4.9 | ) | (4.5 | ) | (3.2 | ) | |||||||
Change in Valuation Allowances | 0.6 | 5.3 | (1.1 | ) | |||||||||
Current year losses with no benefit | 5.9 | 4 | 3.2 | ||||||||||
Net operating loss carry-forwards | (0.0 | ) | (0.1 | ) | (0.2 | ) | |||||||
Changes in tax reserves | (0.1 | ) | 1.1 | (0.0 | ) | ||||||||
Cost of double taxation | 2.1 | 0.6 | 0.9 | ||||||||||
Earnings of equity investments | (0.4 | ) | (0.4 | ) | (0.4 | ) | |||||||
Withholding taxes | 0.6 | 1 | 1.6 | ||||||||||
State taxes, net of federal benefit | 0 | 0.2 | 0.3 | ||||||||||
Statutory Investment Allowances | 0 | 0 | (2.3 | ) | |||||||||
Antitrust Settlement | 0 | 0 | 0.9 | ||||||||||
Other, net | (0.6 | ) | (0.8 | ) | 0.3 | ||||||||
Effective income tax rate | 29.7 | % | 33.2 | % | 27.4 | % | |||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. On December 31, 2014, the Company had net operating loss carryforwards (NOL’s) of approximately $319 million, of which approximately $248 million have no expiration date. The remaining losses expire on various dates through 2029. The Company also has $37 million of U.S. Foreign Tax Credit carry forwards, which begin to expire in 2021. The Company also has Investment Tax Credit carry forwards of $2.3 million, which expire on various dates through 2021. | |||||||||||||
Valuation allowances have been established which partially offset the related deferred assets. Such allowances are primarily provided against NOL’s of companies that have perennially incurred losses, as well as the NOL’s of companies that are start-up operations and have not established a pattern of profitability. The Company assesses all available evidence, both positive and negative, to determine the amount of any required valuation allowance. In the fourth quarter of 2013 the Company recorded a valuation allowance against deferred tax assets of $39 million which was related to the inefficiencies in Europe and capacity alignment due to depressed volumes in the region. | |||||||||||||
The Company has benefited from “tax holidays” in certain of its subsidiaries, principally in China. The foreign tax rate variance includes the effect of these tax holidays. These tax holidays typically take the form of reduced rates of tax on income for a period of several years following the establishment of an eligible company. These tax holidays have resulted in income tax savings of approximately $12 million ($0.13 per share) in 2012. These special holiday rates expired at the end of 2012. The foreign tax rate variance reflects the fact that approximately two-thirds of the Company’s non-U.S. pre-tax income is generated by business operations located in tax jurisdictions where the tax rate is between 25%-30%. | |||||||||||||
The Company has reserves for income taxes that may become payable in future periods as a result of tax audits. These reserves represent the Company’s best estimate of the potential liability for tax exposures. Inherent uncertainties exist in estimates of tax exposures due to changes in tax law, both legislated and concluded through the various jurisdictions’ court systems. The Company files income tax returns in the United States federal jurisdiction, and various states and foreign jurisdictions. | |||||||||||||
At any given time, the Company is undergoing tax audits in several tax jurisdictions, covering multiple years. The Company is no longer subject to income tax examination by the U.S. Federal tax authorities for years prior to 2009. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2007. The Company is undergoing tax audits in several non-U.S. jurisdictions and several U.S. state jurisdictions, covering multiple years. As of December 31, 2014, as a result of those tax examinations, the Company is not aware of any proposed income tax adjustments that would have a material impact on the Company’s financial statements, however, other audits could result in additional increases or decreases to the unrecognized tax benefits in some future period or periods. | |||||||||||||
The Company recognizes interest and potential penalties accrued related to unrecognized tax benefits in tax expense. As of January 1, 2014, the Company had recorded $23.3 million for unrecognized tax benefits related to prior years, including $2.1 million of accrued interest and penalties. During 2014, the Company recorded a net decrease of $1.9 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current and prior years. The Company had $1.6 million accrued for the payment of interest and penalties as of December 31, 2014. Of the total unrecognized tax benefits of $21.4 million recorded at December 31, 2014, $2.8 million is classified as current income tax payable, and $18.6 million is classified as non-current tax payable included in Other Non-Current Liabilities on the Consolidated Balance Sheet. Substantially all of these reserves would impact the effective tax rate if released into income. | |||||||||||||
TABULAR PRESENTATION OF TAX BENEFITS UNRECOGNIZED | 2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits at beginning of year | $ | 22.7 | $ | 14.7 | $ | 14 | |||||||
Gross amounts of increases and decreases: | |||||||||||||
Increases as a result of tax positions taken during a prior period | 0.6 | 7.2 | 1.3 | ||||||||||
Decreases as a result of tax positions taken during a prior period | (0.0 | ) | (0.3 | ) | (0.3 | ) | |||||||
Increases as a result of tax positions taken during the current period | 3.1 | 2.9 | 0.6 | ||||||||||
Decreases as a result of tax positions taken during the current period | 0 | 0 | 0 | ||||||||||
Decreases relating to settlements with taxing authorities | (2.4 | ) | (0.8 | ) | (0.3 | ) | |||||||
Decreases resulting from the lapse of the applicable statute of limitations | (1.2 | ) | (0.6 | ) | (1.3 | ) | |||||||
Translation Difference | (1.3 | ) | (0.4 | ) | 0.7 | ||||||||
Total unrecognized tax benefits at end of year | $ | 21.5 | $ | 22.7 | $ | 14.7 | |||||||
DEFERRED TAXES DECEMBER 31 | 2014 | 2013 | 2012 | ||||||||||
Assets | |||||||||||||
Provisions | $ | 90.6 | $ | 97.2 | $ | 105.9 | |||||||
Costs capitalized for tax | 12 | 18.5 | 11.5 | ||||||||||
Property, plant and equipment | 18.9 | 20.9 | 26.1 | ||||||||||
Retirement Plans | 73.6 | 49.9 | 99.7 | ||||||||||
Tax receivables, principally NOL’s | 166.2 | 136.6 | 104.9 | ||||||||||
Deferred tax assets before allowances | $ | 361.3 | $ | 323.1 | $ | 348.1 | |||||||
Valuation allowances | (150.1 | ) | (115.5 | ) | (44.8 | ) | |||||||
Total | $ | 211.2 | $ | 207.6 | $ | 303.3 | |||||||
Liabilities | |||||||||||||
Acquired intangibles | $ | (22.0 | ) | $ | (25.3 | ) | $ | (29.2 | ) | ||||
Statutory tax allowances | (0.7 | ) | (1.3 | ) | (1.5 | ) | |||||||
Insurance deposit | (5.0 | ) | (6.4 | ) | (7.5 | ) | |||||||
Distribution taxes | (34.0 | ) | (38.1 | ) | (43.0 | ) | |||||||
Other | (2.6 | ) | (3.0 | ) | (2.5 | ) | |||||||
Total | $ | (64.3 | ) | $ | (74.1 | ) | $ | (83.7 | ) | ||||
Net deferred tax asset | $ | 146.9 | $ | 133.5 | $ | 219.6 | |||||||
VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 | 2014 | 2013 | 2012 | ||||||||||
Allowances at beginning of year | $ | 115.5 | $ | 44.8 | $ | 41.7 | |||||||
Benefits reserved current year | 55.2 | 76.1 | 15.7 | ||||||||||
Benefits recognized current year | (0.7 | ) | (1.8 | ) | (11.7 | ) | |||||||
Write-offs and other changes | (3.0 | ) | (0.0 | ) | (0.0 | ) | |||||||
Translation difference | (16.9 | ) | (3.6 | ) | (0.9 | ) | |||||||
Allowances at end of year | $ | 150.1 | $ | 115.5 | $ | 44.8 | |||||||
U.S. federal income taxes have not been provided on $4.0 billion of undistributed earnings of non-U.S. operations, which are considered to be permanently reinvested. Most of these undistributed earnings are not subject to withholding taxes upon distribution to intermediate holding companies. However, when appropriate, the Company provides for the cost of such distribution taxes. The Company has determined that it is not practicable to calculate the deferred tax liability if the entire $4.0 billion of earnings were to be distributed to the United States. |
Receivables
Receivables | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Receivables | 5. Receivables | ||||||||||||
31-Dec | 2014 | 2013 | 2012 | ||||||||||
Receivables | $ | 1,713.20 | $ | 1,692.60 | $ | 1,516.60 | |||||||
Allowance at beginning of year | $ | (4.6 | ) | $ | (7.3 | ) | $ | (8.3 | ) | ||||
Reversal of allowance | 0.9 | 4.1 | 2.1 | ||||||||||
Addition to allowance | (4.1 | ) | (2.2 | ) | (2.1 | ) | |||||||
Write-off against allowance | 0.6 | 0.9 | 1.2 | ||||||||||
Translation difference | 0.3 | -0.1 | -0.2 | ||||||||||
Allowance at end of year | $ | (6.9 | ) | $ | (4.6 | ) | $ | (7.3 | ) | ||||
Total receivables, net of allowance | $ | 1,706.30 | $ | 1,688.00 | $ | 1,509.30 | |||||||
Inventories
Inventories | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Inventories | 6. Inventories | ||||||||||||
31-Dec | 2014 | 2013 | 2012 | ||||||||||
Raw material | $ | 312.2 | $ | 314.8 | $ | 287.7 | |||||||
Work in progress | 240.6 | 232.9 | 225.9 | ||||||||||
Finished products | 206 | 201.9 | 180.9 | ||||||||||
Inventories | $ | 758.8 | $ | 749.6 | $ | 694.5 | |||||||
Inventory reserve at beginning of year | $ | (87.8 | ) | $ | (83.5 | ) | $ | (76.1 | ) | ||||
Reversal of reserve | 5.1 | 5.1 | 5.3 | ||||||||||
Addition to reserve | (10.9 | ) | (20.8 | ) | (22.9 | ) | |||||||
Write-off against reserve | 4 | 10.5 | 10.4 | ||||||||||
Translation difference | 6.3 | 0.9 | -0.2 | ||||||||||
Inventory reserve at end of year | $ | (83.3 | ) | $ | (87.8 | ) | $ | (83.5 | ) | ||||
Total inventories, net of reserve | $ | 675.5 | $ | 661.8 | $ | 611 | |||||||
Investments_and_Other_Noncurre
Investments and Other Non-current Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investments and Other Non-current Assets | 7. Investments and Other Non-current Assets | ||||||||
As of December 31, 2014, the Company had invested in three affiliated companies, which it currently does not control, but in which it exercises significant influence over operations and financial position. These investments are accounted for under the equity method, which means that a proportional share of the equity method investments’ net income increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of Net Income, the proportional share of the net income (loss) is reported as “Income from equity method investments”. In 2013, the Company is applying deposit accounting for an insurance arrangement. In 2014, this arrangement is now a short-term receivable. For additional information on derivatives see Note 3. | |||||||||
31-Dec | 2014 | 2013 | |||||||
Equity method investments | $ | 26.8 | $ | 26.6 | |||||
Deferred tax assets | 139 | 122.4 | |||||||
Income tax receivables | 54.7 | 54.7 | |||||||
Long-term interest bearing deposit (insurance arrangement) | — | 20.2 | |||||||
Other non-current assets | 34.8 | 35.1 | |||||||
Investments and other non-current assets | $ | 255.3 | $ | 259 | |||||
The most significant equity method investments and the respective percentage of ownership are as follows: | |||||||||
COUNTRY | Ownership % | Company name | |||||||
France | 49 | % | EAK SNC Composants pour L’Industrie Automobile | ||||||
Malaysia | 49 | % | Autoliv-Hirotako Safety Sdn Bhd (parent and subsidiaries) | ||||||
China | 30 | % | Changchun Hongguang-Autoliv Vehicle Safety Systems Co. Ltd. | ||||||
In 2014, EAKSA Composants pour L’Industrie Automobile, where the Company owned 49%, was liquidated. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment | 8. Property, Plant and Equipment | ||||||||||||
31-Dec | 2014 | 2013 | Estimated | ||||||||||
life | |||||||||||||
Land and land improvements | $ | 106 | $ | 114.8 | n/a to 15 | ||||||||
Machinery and equipment | 3,160.00 | 3,199.20 | 8-Mar | ||||||||||
Buildings | 813.2 | 801.1 | 20-40 | ||||||||||
Construction in progress | 263.2 | 253.2 | n/a | ||||||||||
Property, plant and equipment | $ | 4,342.40 | $ | 4,368.30 | |||||||||
Less accumulated depreciation | -2,952.20 | -3,032.10 | |||||||||||
Net of depreciation | $ | 1,390.20 | $ | 1,336.20 | |||||||||
DEPRECIATION INCLUDED IN | 2014 | 2013 | 2012 | ||||||||||
Cost of sales | $ | 258.7 | $ | 237.2 | $ | 225.4 | |||||||
Selling, general and administrative expenses | 8 | 8.2 | 8.2 | ||||||||||
Research, development and engineering expenses | 22.7 | 20.2 | 19.4 | ||||||||||
Total | $ | 289.4 | $ | 265.6 | $ | 253 | |||||||
No significant fixed asset impairments were recognized during 2014, 2013 or 2012. | |||||||||||||
The net book value of machinery and equipment under capital lease contracts recorded as of December 31, 2014 and 2013 amounted to $0.3 million and $0.7 million, respectively. The net book value of buildings and land under capital lease contracts recorded as of December 31, 2014 and 2013 amounted to $1.1 million and $1.5 million, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets | ||||||||
UNAMORTIZED INTANGIBLES | 2014 | 2013 | |||||||
Goodwill | |||||||||
Carrying amount at beginning of year | $ | 1,610.10 | $ | 1,610.80 | |||||
Acquisitions and purchase price adjustments | — | — | |||||||
Translation differences | -16.1 | -0.7 | |||||||
Carrying amount at end of year | $ | 1,594.00 | $ | 1,610.10 | |||||
AMORTIZED INTANGIBLES | 2014 | 2013 | |||||||
Gross carrying amount | $ | 394.6 | $ | 398.9 | |||||
Accumulated amortization | -327.4 | -321.6 | |||||||
Carrying value | $ | 67.2 | $ | 77.3 | |||||
No significant impairments were recognized during 2014, 2013 or 2012. | |||||||||
At December 31, 2014, goodwill assets include $1.2 billion associated with the 1997 merger of Autoliv AB and the Automotive Safety Products Division of Morton International, Inc. | |||||||||
At December 31, 2014, intangible assets subject to amortization mainly relate to acquired technology and contractual relationships. The aggregate amortization expense on intangible assets was $16.0 million in 2014, $20.4 million in 2013 and $20.2 million in 2012. The estimated amortization expense is as follows (in millions): 2015: $13.2; 2016: $11.5; 2017: $11.3; 2018: $11.3 and 2019: $11.2. |
Restructuring_and_Other_Liabil
Restructuring and Other Liabilities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Restructuring and Other Liabilities | 10. Restructuring and Other Liabilities | ||||||||||||||||||||||||
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 programs will have an adverse impact on its liquidity position. The tables below summarize the change in the balance sheet position of the restructuring reserves from December 31, 2011 to December 31, 2014. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
In 2014, the employee-related restructuring provisions, made on a case-by-case basis, relate mainly to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2013 to December 31, 2014. | |||||||||||||||||||||||||
December 31 | Provision/ | Provision/ | Cash | Translation | December 31 | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 93.9 | $ | 42.6 | $ | (2.3 | ) | $ | (44.2 | ) | $ | (10.4 | ) | $ | 79.6 | ||||||||||
Other | 0.3 | 0.2 | (0.0 | ) | (0.3 | ) | 0 | 0.2 | |||||||||||||||||
Total reserve | $ | 94.2 | $ | 42.8 | $ | (2.3 | ) | $ | (44.5 | ) | $ | (10.4 | ) | $ | 79.8 | ||||||||||
2013 | |||||||||||||||||||||||||
In 2013, the employee-related restructuring provisions, made on a case-by-case basis, relate mainly to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. 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 | ) | — | 0.3 | |||||||||||||||||
Total reserve | $ | 75.8 | $ | 40.4 | $ | (4.9 | ) | $ | (20.4 | ) | $ | 3.3 | $ | 94.2 | |||||||||||
2012 | |||||||||||||||||||||||||
In 2012, the employee-related restructuring provisions, made on a case-by-case basis, relate mainly to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2011 to December 31, 2012. | |||||||||||||||||||||||||
December 31 | Provision/ | Provision/ | Cash | Translation | December 31 | ||||||||||||||||||||
2011 | Charge | Reversal | payments | difference | 2012 | ||||||||||||||||||||
Restructuring employee-related | $ | 31.4 | $ | 76.6 | $ | (1.8 | ) | $ | (33.3 | ) | $ | 2 | $ | 74.9 | |||||||||||
Other | 0.9 | 0.3 | (0.3 | ) | (0.0 | ) | — | 0.9 | |||||||||||||||||
Total reserve | $ | 32.3 | $ | 76.9 | $ | (2.1 | ) | $ | (33.3 | ) | $ | 2 | $ | 75.8 | |||||||||||
Product_Related_Liabilities
Product Related Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Product Related Liabilities | 11. Product Related Liabilities | ||||||||||||
Autoliv is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product per-formance 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. | |||||||||||||
The increases in reserve in 2014 and 2013 mainly relate to recall related issues, and in 2012 the increase mainly related to warranty related issues. Cash payments in 2014, 2013 and 2012 mainly relate to warranty related issues. The table below summarizes the change in the balance sheet position of the product-related liabilities. | |||||||||||||
31-Dec | 2014 | 2013 | 2012 | ||||||||||
Reserve at beginning of the year | $ | 36.4 | $ | 29.9 | $ | 33 | |||||||
Change in reserve | 37.9 | 21.3 | 19.3 | ||||||||||
Cash payments | (20.9 | ) | (15.2 | ) | (22.7 | ) | |||||||
Translation difference | (2.1 | ) | 0.4 | 0.3 | |||||||||
Reserve at end of the year | $ | 51.3 | $ | 36.4 | $ | 29.9 |
Debt_and_Credit_Agreements
Debt and Credit Agreements | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Debt and Credit Agreements | 12. Debt and Credit Agreements | ||||||||||||||||||||||||||||||||
As part of its debt management, the Company enters into derivatives to achieve economically effective hedges and to minimize the cost of its funding. In this note, short-term debt and long-term debt are discussed including Debt-Related Derivatives (DRD), i.e. debt including fair value adjustments from hedges. Included in the DRD is also the unamortized fair value adjustment related to discontinued fair value hedges which will be amortized over the remaining life of the debt. The Debt Profile table also shows debt excluding DRD, i.e. reconciled to debt as reported in the balance sheet. | |||||||||||||||||||||||||||||||||
SHORT-TERM DEBT | |||||||||||||||||||||||||||||||||
As of December 31, 2014, total short-term debt including DRD was $79 million including $22 million of short-term portion of long-term loans. On April 30, 2014, the senior notes related to the equity units with a value of approximately $106.3 million matured and are no longer outstanding. On April 30, 2012, Autoliv settled the purchase contracts underlying the equity units by issuing approximately 5.8 million shares of common stock in exchange for $106 million in proceeds generated by the maturity of the U.S. Treasury securities purchased following the remarketing. | |||||||||||||||||||||||||||||||||
In November 2014, $125 million of senior notes matured. These notes were issued in 2007 as U.S. private placements by Autoliv ASP Inc. (a 100% owned subsidiary), carrying fixed interest rate of 5.8%. Short-term portion of long-term loans consists of financing at the subsidiary level, primarily $18 million of loans borrowed by Autoliv do Brazil Ltda. (a 100% owned subsidiary), which carry an interest rate of 13.0%, $2 million equivalent loans borrowed locally in Russia by OOO Autoliv (a 100% owned subsidiary), which carry an interest rate of 25% and of $1 million equivalent of loans borrowed from Japanese banks by Autoliv KK (a 100% owned subsidiary), which carry an interest rate of 1.6%. | |||||||||||||||||||||||||||||||||
The Company’s subsidiaries also have credit agreements, principally in the form of overdraft facilities, with a number of local banks. Total available short-term facilities, as of December 31, 2014, excluding commercial paper facilities as described below, amounted to $307 million, of which $57 million was utilized. The aggregate amount of unused short-term lines of credit at December 31, 2014 was $250 million. The weighted average interest rate on total short-term debt outstanding at December 31, 2014 and 2013 excluding the short-term portion of long-term debt was 4.1% and 3.5%, respectively. | |||||||||||||||||||||||||||||||||
LONG-TERM DEBT – OUTSTANDING LOANS | |||||||||||||||||||||||||||||||||
As of December 31, 2014, total long-term debt including DRD was $1,512 million. 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 dated April 23, 2014, by and among Autoliv ASP Inc., the Company and the purchasers listed therein. The $1.25 billion in 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%. | |||||||||||||||||||||||||||||||||
In addition to the $1.25 billion senior notes issued in 2014, long-term debt including DRD of $262 million consists of $165 million of senior notes issued in 2007 as private placements by Autoliv ASP Inc. (a 100% owned subsidiary). The notes issued in 2007 were guaranteed by the Company and consist of two remaining long-term tranches maturing in 2017 and 2019, respectively, which carried fixed interest rates between 6.1% and 6.2%. The Company entered into swap arrangements with respect to part of the proceeds of the notes offering, most of which were cancelled in 2008 resulting in a mark-to-market gain. In March 2013 the remaining interest rate swap, with a nominal value of $60 million, was cancelled. This gain is amortized through interest expense over the life of the respective notes. Consequently, the remaining $165 million of the long-term notes carry fixed interest rates varying between 2.5% and 5.4%, when including the amortization of the cancelled swaps. | |||||||||||||||||||||||||||||||||
In 2011, the Company issued a SEK 300 million note ($38 million equivalent) maturing in 2017 carrying a floating interest rate of STIBOR + 0.95%. | |||||||||||||||||||||||||||||||||
A fixed-rate note was issued in December 2012 of 350 million SEK ($45 million equivalent). The 5-year note will mature in December 2017 and carries a fixed interest rate of 2.49%, which represents the European Investment Bank’s (EIB) cost of funds plus 0.3%. | |||||||||||||||||||||||||||||||||
The remaining other long-term debt of $14 million, consisted primarily of $9 million equivalent loans borrowed by Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi ve Ticavet A.S. (a 100% owned subsidiary), which carry an interest rate of 4.3% and $4 million equivalent loans borrowed by Autoliv do Brazil Ltda. (a 100% owned subsidiary), which carry an interest rate of 13.9%. | |||||||||||||||||||||||||||||||||
LONG-TERM DEBT—LOAN FACILITIES | |||||||||||||||||||||||||||||||||
In April 2011, the Company refinanced its revolving credit facility (RCF) of $1.1 billion. The facility is syndicated among 13 banks and originally had two extension options where Autoliv could request the banks to extend the maturity to 2017 and 2018, respectively, on the first and second anniversaries of the April 2011 loan facility, a so called 5+1+1 structure. In April 2012 and in April 2013, Autoliv extended essentially all of its $1.1 billion RCF, as noted above, with unchanged terms and conditions. The Company pays a commitment fee of 0.16% (given the rating of A- from Standard & Poor’s at December 31, 2014). Financing costs of $5 million were incurred in April 2011 and are amortized over the expected life of the facility. Borrowings under this facility are unsecured and bear interest based on the relevant LIBOR or IBOR rate. The commitment is available for general corporate purposes. Borrowings are pre-payable at any time and are due at the respective expiration date. The extension fees, incurred in April 2012 and April 2013, of $1 million in total are amortized over the remaining expected life of the facility. | |||||||||||||||||||||||||||||||||
In June 2009, Autoliv AB (a 100% owned subsidiary) entered into an 18-month financing commitment with EIB of €225 million ($274 million equivalent). In July 2011, this commitment was amended and extended. In December 2012, a portion of this loan commitment was utilized (a SEK denominated note was issued, see above) and the remainder of the total €225 million EIB commitment expired. | |||||||||||||||||||||||||||||||||
In July 2013, Autoliv AB entered into a financing commitment agreement with EIB, giving Autoliv AB access to a loan of €200 million ($244 million equivalent) to help finance R&D projects at Autoliv’s R&D facilities in Germany, France and Sweden. Under the financing commitment, Autoliv AB may, during the 18-month period following the agreement, draw loans with a maturity of up to 7 years at a cost of EIB’s cost of funding plus 0.26%. In addition to the interest payable on each tranche, Autoliv AB is required to pay a non-utilization fee of 0.13% on the undrawn, uncancelled balance of the credit. The financial obligations of the financing commitment agreement, including repayment of any funds, are guaranteed by the Company pursuant to a Guarantee Agreement between EIB and the Company. | |||||||||||||||||||||||||||||||||
In January, 2015 Autoliv AB signed an extension agreement with EIB whereby the facility is available for an additional 12 month period. There is no additional upfront fee associated with the extension, however the non-utilization fee of 0.13% on the undrawn, uncancelled balance of the credit will continue during the period the facility is available for drawdowns. | |||||||||||||||||||||||||||||||||
As a result, Autoliv has a total of $1.3 billion unutilized long-term debt facilities available. The Company is not subject to any financial covenants, i.e. perform-ance related restrictions, in any of its significant long-term borrowings or commitments. | |||||||||||||||||||||||||||||||||
The Company has two commercial paper programs: one SEK 7 billion (approx. $896 million) Swedish program and one $1.0 billion U.S. program. Both programs were unutilized at year-end. When notes have been outstanding under these programs, all of the notes have been classified as long-term debt because the Company has had the ability and intent to refinance these borrowings on a long-term basis either through continued commercial paper borrowings or utilization of the long-term credit facilities described above. | |||||||||||||||||||||||||||||||||
CREDIT RISK | |||||||||||||||||||||||||||||||||
In the Company’s financial operations, credit risk arises in connection with cash deposits with banks and when entering into forward exchange agreements, swap contracts or other financial instruments. In order to reduce this risk, deposits and financial instruments are only entered with a limited number of banks up to a calculated risk amount of $150 million per bank for banks rated A- or above and up to $50 million for banks rated BBB+. The policy of the Company is to work with banks that have a high credit rating and that participate in the Company’s financing. In addition to this, deposits can be placed in U.S. and Swedish government paper as well as up to $2.0 billion in certain AAA rated money market funds. As of December 31, 2014, the Company had placed $429 million in money market funds and $550 million in U.S. government paper. | |||||||||||||||||||||||||||||||||
The table below shows debt maturity as cash flow in the upper part which is reconciled with reported debt in the last row. For a description of hedging instruments used as part of debt management, see the Financial Instruments section of Note 1 and Note 3. | |||||||||||||||||||||||||||||||||
DEBT PROFILE | |||||||||||||||||||||||||||||||||
PRINCIPAL AMOUNT BY EXPECTED MATURITY | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | Total | |||||||||||||||||||||||||
long-term | |||||||||||||||||||||||||||||||||
U.S. private placement notes (incl. DRD1)) | $ | — | $ | — | $ | 105 | $ | — | $ | 268 | $ | 1,042.00 | $ | 1,415.00 | $ | 1,415.00 | |||||||||||||||||
(Weighted average interest rate 3.9%) | |||||||||||||||||||||||||||||||||
Overdraft/Other short-term debt (incl. DRD1)) | 56.9 | — | — | — | — | — | — | 56.9 | |||||||||||||||||||||||||
(Weighted average interest rate 4.1%) | |||||||||||||||||||||||||||||||||
Medium-term notes | — | — | 83.2 | — | — | — | 83.2 | 83.2 | |||||||||||||||||||||||||
(Weighted average interest rate 1.9%) | |||||||||||||||||||||||||||||||||
Other long-term loans, incl. current portion2) | 21.8 | 13.9 | — | — | — | — | 13.9 | 35.7 | |||||||||||||||||||||||||
(Weighted average interest rate 11.1%) | |||||||||||||||||||||||||||||||||
Total debt as cash flow, (incl. DRD1)) | $ | 78.7 | $ | 13.9 | $ | 188.2 | $ | — | $ | 268 | $ | 1,042.00 | $ | 1,512.10 | $ | 1,590.80 | |||||||||||||||||
DRD adjustment | 0.9 | — | 0.9 | — | 8.2 | — | 9.1 | 10 | |||||||||||||||||||||||||
Total debt as reported | $ | 79.6 | $ | 13.9 | $ | 189.1 | $ | — | $ | 276.2 | $ | 1,042.00 | $ | 1,521.20 | $ | 1,600.80 | |||||||||||||||||
1) Debt Related Derivatives (DRD), i.e. the fair value adjustments associated with hedging instruments as adjustments to the carrying value of the underlying debt. Included in the DRD is also the unamortized fair value adjustment related to discontinued fair value hedges which will be amortized over the remaining life of the debt. 2) Primarily external loans drawn locally in Brazil, Turkey and Russia. | |||||||||||||||||||||||||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Shareholders' Equity | 13. Shareholders’ Equity | ||||||||||||
The number of shares outstanding as of December 31, 2014 was 88,726,543. | |||||||||||||
DIVIDENDS | 2014 | 2013 | 2012 | ||||||||||
Cash dividend paid per share | $ | 2.12 | $ | 2 | $ | 1.89 | |||||||
Cash dividend declared per share | $ | 2.14 | $ | 2.02 | $ | 1.94 | |||||||
OTHER COMPREHENSIVE INCOME (LOSS)/ ENDING BALANCE1) | 2014 | 2013 | 2012 | ||||||||||
Cumulative translation adjustments | $ | (155.1 | ) | $ | 49.4 | $ | 67.2 | ||||||
Net pension liability | (97.9 | ) | (48.9 | ) | (107.7 | ) | |||||||
Total (ending balance) | $ | (253.0 | ) | $ | 0.5 | $ | (40.5 | ) | |||||
Deferred taxes on the pension liability | $ | 43.4 | $ | 21.4 | $ | 59.7 | |||||||
1) | The components of Other Comprehensive Income (Loss) are net of any related income tax effects. | ||||||||||||
EQUITY AND 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. | |||||||||||||
SHARE REPURCHASE PROGRAM | |||||||||||||
Autoliv initiated its repurchase program in 2000 with 10 million shares and subsequently expanded the authorization three times between 2000 and 2007 to 37.5 million shares. Share repurchases were suspended in September, 2008 as a result of the financial crisis to preserve cash. During the fourth quarter 2013, the Company reactivated its share repurchase program. In January, 2014, the Board of Directors of the Company approved an additional 10 million shares for repurchase under the existing authorization for share repurchases. There is no expiration date for the share repurchase. The maximum number of shares that may yet be purchased under the Stock Repurchase Program amounted to 5,349,926 shares at December 31, 2014. | |||||||||||||
SHARES | 2014 | 2013 | 2012 | ||||||||||
Shares repurchased (shares in millions) | 6.2 | 1.6 | — | ||||||||||
Cash paid for shares | $ | 616 | $ | 147.9 | $ | — | |||||||
In total, Autoliv has repurchased 42.2 million shares between May 2000 and December 2014 for cash of $2,237 million, including commissions. Of the total amount of repurchased shares, 14.7 million shares were utilized for the equity offering in 2009, 3.1 million and 5.8 million shares were utilized for the repurchase of equity units in the second quarter of 2010 and the settlement of the Equity Units in the second quarter of 2012, respectively. In addition, 4.5 million shares have been utilized by the Stock Incentive Plan whereof 0.5 million, 0.5 million and 0.4 million were utilized during 2014, 2013 and 2012, respectively. At December 31, 2014, 14.1 million of the repurchased shares remain in treasury stock. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Cash Flow Information | 14. Supplemental Cash Flow Information | ||||||||||||
The Company’s acquisitions and divestitures of businesses, net of cash acquired were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Acquisitions: | |||||||||||||
Cash paid for prior year acquisitions | $ | (1.4 | ) | $ | (2.0 | ) | $ | (1.8 | ) | ||||
Acquisition of businesses, net of cash acquired | $ | (1.4 | ) | $ | (2.0 | ) | $ | (1.8 | ) | ||||
2014 | 2013 | 2012 | |||||||||||
Divestitures of business, net of cash disposed | $ | 2.4 | $ | — | $ | 5.2 | |||||||
Payments for interest and income taxes were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest | $ | 57 | $ | 33 | $ | 40 | |||||||
Income taxes | $ | 206 | $ | 206 | $ | 237 |
Stock_Incentive_Plan
Stock Incentive Plan | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stock Incentive Plan | 15. Stock Incentive Plan | ||||||||||||
Under the amended and restated Autoliv, Inc. 1997 Stock Incentive Plan (the Plan) adopted by the shareholders, awards have been made to selected executive officers of the Company and other key employees in the form of stock options and restricted stock units (RSUs). All stock options are granted for 10-year terms, have an exercise price equal to the fair value of the share at the date of grant, and become exercisable after one year of continued employment following the grant date. Each RSU represents a promise to transfer a share of the Company’s common stock to the employee after three years of service following the date of grant or upon retirement, whichever is earlier. The source of the shares issued upon share option exercise or lapse of RSU service period is generally from treasury shares. The Plan provides for the issuance of up to 9,585,055 common shares for awards. At December 31, 2014, 5,945,064 of these shares have been issued for awards. For stock options and RSUs outstanding and options exercisable at year end, see the following tables. | |||||||||||||
The fair value of the RSUs is calculated as the fair value of the shares at the RSU grant date. The grant date fair value for RSUs granted in 2011, 2010 and 2009 (vested in 2014, 2013 and 2012) was $4.4 million, $4.3 million and $3.3 million, respectively. The aggregate intrinsic value for RSUs outstanding at December 31, 2014 was $21.0 million. The average fair value of RSUs granted in 2014, 2013 and 2012 was $88.54, $64.59 and $61.58, respectively. | |||||||||||||
The average grant date fair value of stock options granted during 2014, 2013 and 2012 was estimated at $17.35, $15.61 and $18.01 per share, respectively, using the Black-Scholes option-pricing model based on the following assumptions: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate | 1.1 | % | 0.9 | % | 0.9 | % | |||||||
Dividend yield | 2.3 | % | 2.3 | % | 2.8 | % | |||||||
Expected life in years | 3.9 | 4.1 | 4.1 | ||||||||||
Expected volatility | 28 | % | 34 | % | 42 | % | |||||||
The Company uses historical exercise data for determining the expected life assumption. Expected volatility is based on historical and implied volatility. | |||||||||||||
The total stock (RSUs and stock options) compensation cost recognized in the Consolidated Statements of Net Income for 2014, 2013 and 2012 was $8.1 million, $8.3 million and $7.7 million, respectively. | |||||||||||||
The total compensation cost related to non-vested awards not yet recognized is $5.9 million for RSUs and the weighted average period over which this cost is expected to be recognized is approximately two years. There is no significant compensation cost not yet recognized for stock options. | |||||||||||||
Information on the number of RSUs and stock options related to the Plan during the period of 2012 to 2014 is as follows: | |||||||||||||
RSUs | 2014 | 2013 | 2012 | ||||||||||
Outstanding at beginning of year | 204,277 | 211,618 | 320,122 | ||||||||||
Granted | 64,223 | 91,230 | 72,900 | ||||||||||
Shares issued | (56,184 | ) | (84,342 | ) | (172,212 | ) | |||||||
Cancelled/Forfeited/Expired | (14,031 | ) | (14,229 | ) | (9,192 | ) | |||||||
Outstanding at end of year | 198,285 | 204,277 | 211,618 | ||||||||||
STOCK OPTIONS | Number of options | Weighted average | |||||||||||
exercise price | |||||||||||||
Outstanding at Dec 31, 2011 | 1,073,002 | $ | 46.26 | ||||||||||
Granted | 218,695 | 67 | |||||||||||
Exercised | (254,440 | ) | 33.26 | ||||||||||
Cancelled/Forfeited/Expired | (25,027 | ) | 50.59 | ||||||||||
Outstanding at Dec 31, 2012 | 1,012,230 | $ | 53.91 | ||||||||||
Granted | 273,541 | 69.18 | |||||||||||
Exercised | (437,751 | ) | 53.58 | ||||||||||
Cancelled/Forfeited/Expired | (16,319 | ) | 49.25 | ||||||||||
Outstanding at Dec 31, 2013 | 831,701 | $ | 59.2 | ||||||||||
Granted | 192,665 | 94.87 | |||||||||||
Exercised | (471,732 | ) | 60.78 | ||||||||||
Cancelled/Forfeited/Expired | (13,809 | ) | 66.23 | ||||||||||
Outstanding at Dec 31, 2014 | 538,825 | $ | 70.38 | ||||||||||
OPTIONS EXERCISABLE | |||||||||||||
At December 31, 2012 | 796,720 | $ | 50.37 | ||||||||||
At December 31, 2013 | 559,483 | $ | 54.34 | ||||||||||
At December 31, 2014 | 349,190 | $ | 57.08 | ||||||||||
The following summarizes information about stock options outstanding and exercisable on December 31, 2014: | |||||||||||||
RANGE OF EXERCISE PRICES | Number | Remaining | Weighted | ||||||||||
outstanding | contract life | average | |||||||||||
(in years) | exercise | ||||||||||||
price | |||||||||||||
$16.31 - $19.96 | 41,950 | 4.14 | $ | 16.31 | |||||||||
$40.26 - $49.60 | 63,182 | 3.65 | $ | 46.14 | |||||||||
$51.67 - $59.01 | 45,150 | 2.64 | $ | 55.27 | |||||||||
$67.00 - $69.18 | 148,326 | 7.79 | $ | 68.41 | |||||||||
$72.95 - $94.87 | 240,217 | 8.51 | $ | 90.25 | |||||||||
538,825 | 6.91 | $ | 70.38 | ||||||||||
RANGE OF EXERCISE PRICES | Number | Remaining | Weighted | ||||||||||
exercisable | contract life | average | |||||||||||
(in years) | exercise | ||||||||||||
price | |||||||||||||
$16.31 - $19.96 | 41,950 | 4.14 | $ | 16.31 | |||||||||
$40.26 - $49.60 | 63,182 | 3.65 | $ | 46.14 | |||||||||
$51.67 - $59.01 | 45,150 | 2.64 | $ | 55.27 | |||||||||
$67.00 - $69.18 | 148,326 | 7.79 | $ | 68.41 | |||||||||
$72.95 - $94.87 | 50,582 | 6.14 | $ | 72.95 | |||||||||
349,190 | 5.7 | $ | 57.08 | ||||||||||
The total aggregate intrinsic value, which is the difference between the exercise price and $106.12 (closing price per share at December 31, 2014), for all “in the money” stock options outstanding and exercisable was $19.2 million and $17.1 million, respectively. |
Contingent_Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2014 | |
Contingent Liabilities | 16. 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 $20.4 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 at this time. | |
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 December 31, 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 has cooperated with this investigation and believes that the investigation will not result in an adverse outcome for the Company. | |
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 December 31, 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. | |
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 May 2014. 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, subject to final approval by the MDL court following notice to the settlement class, an opportunity to object or opt-out of the settlement, and a fairness hearing. 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 regarding their U.S. purchases that were or could have been asserted on behalf of the class in the MDL. In July 2014, the three settlements received preliminary court approval. Following notice to the direct purchaser settlement class and the receipt of opt-out notices from members of that class, the class settlement amount was by the terms of the settlement agreement reduced to approximately $35.5 million. The amount by which the direct purchaser settlement was reduced remains accrued. Following a fairness hearing on December 3, 2014, the MDL court on January 7, 2015 entered an order granting final approval to the direct purchaser class settlement. Notices to the settlement classes and the fairness hearings for the other two class settlements have been 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. The three class settlements 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 Company is in discussions with certain OEMs regarding the possible resolution of potential claims for purchases not covered by the U.S. direct purchaser settlement. The outcome of these discussions is uncertain and any potential loss contingencies resulting from these discussions with these OEMs, individually or in the aggregate, are not at this time reasonably estimable (beyond the accrued amount noted above) but could negatively impact the Company’s results in the period in which they are resolved or become estimable. | |
The other four antitrust class action 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 December 31, 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 purported 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 sought to recover damages in an unspecified amount. | |
In August 2014, the Company and CLPT entered into a definitive settlement agreement to settle the Lawsuit and the claims of the alleged class members for a payment of $22.5 million. This settlement was approved by the court in October 2014 and resolves the claims asserted in the Lawsuit against the Company and the individuals named in the complaint, including the claims of the settlement class members. The Company recorded a net expense of $4.5 million in the second quarter of 2014, and the balance of the settlement amount was paid by Autoliv’s insurance carrier. The agreement is not an admission of wrongdoing or acceptance of fault by the Company or any of the individuals named in the complaint. | |
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 purported to allege claims against the individual defendants for breach of fiduciary duty, waste and unjust enrichment related to the Company’s antitrust issues and named the Company as a nominal defendant only, seeking monetary and other relief on behalf of Autoliv against the individual defendants. On December 15, 2014, the Delaware court approved a settlement dismissing all claims in the complaint with prejudice in exchange for certain corporate governance revisions. | |
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. 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, increase of otherwise adjust its 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. |
Lease_Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2014 | |
Lease Commitments | 17. Lease Commitments |
OPERATING LEASE | |
The Company leases certain offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment under operating lease contracts. The operating leases, some of which are non-cancellable and include renewals, expire at various dates through 2045. The Company pays most maintenance, insurance and tax expenses relating to leased assets. Rental expense for operating leases was $44.6 million for 2014, $45.8 million for 2013 and $35.5 million for 2012. | |
At December 31, 2014, future minimum lease payments for non-cancellable operating leases totaled $115.0 million and are payable as follows (in millions): 2015: $37.7; 2016: $26.2; 2017: $17.9; 2018: $13.3; 2019: $9.5; 2020 and thereafter: $10.4. | |
CAPITAL LEASE | |
The Company leases certain property, plant and equipment under capital lease contracts. The capital leases expire at various dates through 2017. | |
At December 31, 2014, future minimum lease payments for non-cancellable capital leases totaled $0.7 million and are payable as follows (in millions): 2015: $0.5; 2016: $0.2; 2017: $0.0; 2018: $0.0; 2019: $0.0; 2020 and thereafter: $0.0. |
Retirement_Plans
Retirement Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Retirement Plans | 18. Retirement Plans | ||||||||||||||||||||
DEFINED CONTRIBUTION PLANS | |||||||||||||||||||||
Many of the Company’s employees are covered by government sponsored pension and welfare programs. Under the terms of these programs, the Company makes periodic payments to various government agencies. In addition, in some countries the Company sponsors or participates in certain non-governmental defined contribution plans. Contributions to defined contribution plans for the years ended December 31, 2014, 2013 and 2012 were $20.2 million, $19.7 million and $18.1 million, respectively. | |||||||||||||||||||||
MULTIEMPLOYER PLANS | |||||||||||||||||||||
The Company participates in multiemployer plans in Sweden, Canada, Spain and the Netherlands, which are all deemed insignificant. The largest of these plans is in Sweden, the ITP-2 pension plan, which is funded through Alecta. For employees born before 1979, the plan provides a final pay pension benefit based on all service with participating employers. The Company must pay for wage increases in excess of inflation on service earned with previous employers. The plan also provides disability and family benefits. The plan is more than 100% funded. The Company contributions to the multiemployer plan in Sweden for the years ended December 31, 2014, 2013 and 2012 were $2.4 million, $1.9 million and $2.3 million, respectively. | |||||||||||||||||||||
DEFINED BENEFIT PLANS | |||||||||||||||||||||
The Company has a number of defined benefit pension plans, both contributory and non-contributory, in the U.S., Canada, Germany, France, Japan, Mexico, Sweden, South Korea, India, Turkey, Thailand, Philippines and the United Kingdom. There are funded as well as unfunded plan arrangements which provide retirement benefits to both U.S. and non-U.S. participants. | |||||||||||||||||||||
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. The Company has closed participation in the Autoliv ASP, Inc. Pension Plan to exclude those employees hired after December 31, 2003. Within the U.S. there is also a non-qualified restoration plan that provides benefits to employees whose benefits in the primary U.S. plan are restricted by limitations on the compensation that can be considered in calculating their benefits. | |||||||||||||||||||||
For the Company’s non-U.S. defined benefit plans the most significant individual plan resides in the U.K. The Company has closed participation in the U.K. defined benefit plan to exclude all employees hired after April 30, 2003 with few members accruing benefits. | |||||||||||||||||||||
CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR THE PERIODS ENDED DECEMBER 31 | |||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Benefit obligation at beginning of year | $ | 265.8 | $ | 314.2 | $ | 205 | $ | 195.4 | |||||||||||||
Service cost | 7.3 | 9.3 | 13.5 | 13.5 | |||||||||||||||||
Interest cost | 13 | 12.8 | 8.2 | 7.3 | |||||||||||||||||
Actuarial (gain) loss due to: | |||||||||||||||||||||
Change in discount rate | 58.9 | (53.1 | ) | 40.4 | (8.3 | ) | |||||||||||||||
Experience | (0.5 | ) | (17.5 | ) | 1 | 2.3 | |||||||||||||||
Other assumption changes | 18.4 | 7.1 | (1.9 | ) | 3 | ||||||||||||||||
Plan participants’ contributions | — | — | 0.2 | 0.2 | |||||||||||||||||
Plan amendments | — | — | 0.9 | 0.5 | |||||||||||||||||
Benefits paid | (5.9 | ) | (7.0 | ) | (8.3 | ) | (7.7 | ) | |||||||||||||
Curtailments | — | — | 0.1 | 0.1 | |||||||||||||||||
Special termination benefits | — | — | — | 0.5 | |||||||||||||||||
Other | — | — | (0.5 | ) | (0.9 | ) | |||||||||||||||
Translation difference | — | — | (21.3 | ) | (0.9 | ) | |||||||||||||||
Benefit obligation at end of year | $ | 357 | $ | 265.8 | $ | 237.3 | $ | 205 | |||||||||||||
Fair value of plan assets at beginning of year | $ | 223.6 | $ | 159.4 | $ | 99.9 | $ | 94.8 | |||||||||||||
Actual return on plan assets | 29.4 | 29 | 14.2 | 3.4 | |||||||||||||||||
Company contributions | 6.7 | 42.2 | 9.4 | 8 | |||||||||||||||||
Plan participants’ contributions | — | — | 0.2 | 0.2 | |||||||||||||||||
Benefits paid | (5.9 | ) | (7.0 | ) | (8.3 | ) | (7.7 | ) | |||||||||||||
Other | — | — | (0.2 | ) | (0.2 | ) | |||||||||||||||
Translation difference | — | — | -7.2 | 1.4 | |||||||||||||||||
Fair value of plan assets at year end | $ | 253.8 | $ | 223.6 | $ | 108 | $ | 99.9 | |||||||||||||
Funded status recognized in the balance sheet | $ | (103.2 | ) | $ | (42.2 | ) | $ | (129.3 | ) | $ | (105.1 | ) | |||||||||
The U.S. plan provides that benefits may be paid in the form of a lump sum if so elected by the participant. In order to more accurately reflect a market-derived pension obligation, Autoliv adjusts the assumed lump sum interest rate to reflect market conditions as of each December 31. This methodology is consistent with the approach required under the Pension Protection Act of 2006, which provides the rules for determining minimum funding requirements in the U.S. | |||||||||||||||||||||
The short-term portion of the pension liability is not significant. | |||||||||||||||||||||
COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS | |||||||||||||||||||||
U.S. | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 7.3 | $ | 9.3 | $ | 8.3 | |||||||||||||||
Interest cost | 13 | 12.8 | 12.3 | ||||||||||||||||||
Expected return on plan assets | (15.4 | ) | (11.6 | ) | (10.2 | ) | |||||||||||||||
Amortization of prior service credit | (1.0 | ) | (1.0 | ) | (1.0 | ) | |||||||||||||||
Amortization of actuarial loss | 1.9 | 10 | 8.5 | ||||||||||||||||||
Net periodic benefit cost | $ | 5.8 | $ | 19.5 | $ | 17.9 | |||||||||||||||
Non-U.S. | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 13.5 | $ | 13.5 | $ | 12 | |||||||||||||||
Interest cost | 8.2 | 7.3 | 7.1 | ||||||||||||||||||
Expected return on plan assets | (4.5 | ) | (4.0 | ) | (3.9 | ) | |||||||||||||||
Amortization of prior service costs | 0.3 | 0.2 | 0.1 | ||||||||||||||||||
Amortization of actuarial loss | 1.1 | 2.5 | 1.4 | ||||||||||||||||||
Settlement loss (gain) | 0.1 | 0.2 | 1 | ||||||||||||||||||
Curtailment loss (gain) | 0.1 | 0.1 | — | ||||||||||||||||||
Special termination benefits | — | 0.5 | 0.1 | ||||||||||||||||||
Net periodic benefit cost | $ | 18.8 | $ | 20.3 | $ | 17.8 | |||||||||||||||
The estimated prior service credit for the U.S. defined benefit pension plans that will be amortized from other comprehensive income into net benefit cost over the next fiscal year is $(1.0) million. Amortization of net actuarial losses is expected to be $7.0 million in 2015. Net periodic benefit cost associated with these U.S. plans was $5.8 million in 2014 and is expected to be around $11.3 million in 2015. The estimated prior service cost and net actuarial loss for the non-U.S. defined benefit pension plans that will be amortized from other comprehensive income into net benefit cost over the next fiscal year are $0.3 million and $3.2 million, respectively. Net periodic benefit cost associated with these non-U.S. plans was $18.8 million in 2014 and is expected to be around $21.8 million in 2015. The amortization of the net actuarial loss is made over the estimated remaining service lives of the plan participants, 10 years for U.S. and 6-22 years for non-U.S. participants, varying between the different countries depending on the age of the work force. | |||||||||||||||||||||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX AS OF DECEMBER 31 | |||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net actuarial loss (gain) | $ | 106.6 | $ | 45.6 | $ | 53.8 | $ | 29.9 | |||||||||||||
Prior service (credit) cost | -1.9 | -2.9 | 2.6 | 2.2 | |||||||||||||||||
Total accumulated other comprehensive income recognized in the balance sheet | $ | 104.7 | $ | 42.7 | $ | 56.4 | $ | 32.1 | |||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX FOR THE PERIODS ENDED DECEMBER 31 | |||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | $ | 42.7 | $ | 132.7 | $ | 32.1 | $ | 35.6 | |||||||||||||
Net actuarial loss (gain) | 62.8 | (81.0 | ) | 30.3 | (1.0 | ) | |||||||||||||||
Prior service cost | — | — | 0.9 | 0.5 | |||||||||||||||||
Amortization of prior service credit (cost) | 1 | 1 | (0.3 | ) | (0.2 | ) | |||||||||||||||
Amortization of actuarial loss | (1.8 | ) | (10.0 | ) | (1.2 | ) | (2.7 | ) | |||||||||||||
Translation difference | — | — | (5.4 | ) | (0.1 | ) | |||||||||||||||
Total retirement benefit recognized in accumulated other comprehensive income at end of year | $ | 104.7 | $ | 42.7 | $ | 56.4 | $ | 32.1 | |||||||||||||
The accumulated benefit obligation for the U.S. non-contributory defined benefit pension plans was $278.5 million and $204.9 million at December 31, 2014 and 2013, respectively. The accumulated benefit obligation for the non-U.S. defined benefit pension plans was $195.4 million and $172.3 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
Pension plans for which the accumulated benefit obligation (ABO) is notably in excess of the plan assets reside in the following countries: U.S., France, Germany, Japan, South Korea and Sweden. At December 31, 2013, the U.S. plan assets exceeded the ABO by $18.7 million. | |||||||||||||||||||||
PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31 | |||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Projected Benefit Obligation (PBO) | $ | 357 | n/a | $ | 155.4 | $ | 109.5 | ||||||||||||||
Accumulated Benefit Obligation (ABO) | $ | 278.5 | n/a | $ | 124.1 | $ | 84.7 | ||||||||||||||
Fair value of plan assets | $ | 253.8 | n/a | $ | 29.6 | $ | 4.9 | ||||||||||||||
The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected benefit obligation and annual net periodic benefit cost. | |||||||||||||||||||||
ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31 | |||||||||||||||||||||
U.S. | Non-U.S.1) | ||||||||||||||||||||
% WEIGHTED AVERAGE | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4 | 5 | 0.50 - 4.00 | 1.00 - 5.00 | |||||||||||||||||
Rate of increases in compensation level | 3.5 | 3.5 | 2.25 - 5.00 | 2.25 - 5.00 | |||||||||||||||||
ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31 | |||||||||||||||||||||
U.S. | |||||||||||||||||||||
% WEIGHTED AVERAGE | 2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5 | 4.05 | 4.6 | ||||||||||||||||||
Rate of increases in compensation level | 3.5 | 3.5 | 3.5 | ||||||||||||||||||
Expected long-term rate of return on assets | 7.08 | 7.5 | 7.5 | ||||||||||||||||||
Non-U.S.1) | |||||||||||||||||||||
% WEIGHTED AVERAGE | 2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 1.00 - 5.00 | 1.50 - 4.50 | 1.50 - 5.50 | ||||||||||||||||||
Rate of increases in compensation level | 2.25 - 5.00 | 2.25 - 5.00 | 2.25 - 5.00 | ||||||||||||||||||
Expected long-term rate of return on assets | 2.60 - 6.15 | 3.00 - 5.75 | 3.75 - 5.75 | ||||||||||||||||||
1) | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent more than 90% of the total Non-U.S. projected benefit obligation. | ||||||||||||||||||||
The discount rate for the U.S. plans has been set based on the rates of return on high-quality fixed-income investments currently available at the measurement date and expected to be available during the period the benefits will be paid. The expected timing of cash flows from the plan has also been considered in select-ing the discount rate. In particular, the yields on bonds rated AA or better on the measurement date have been used to set the discount rate. The discount rate for the U.K. plan has been set based on the weighted average yields on long-term high-grade corporate bonds and is determined by reference to financial markets on the measurement date. | |||||||||||||||||||||
The expected rate of increase in compensation levels and long-term rate of return on plan assets are determined based on a number of factors and must take into account long-term expectations and reflect the financial environment in the respective local market. The expected return on assets for the U.S. and U.K. plans are based on the fair value of the assets as of December 31. | |||||||||||||||||||||
The level of equity exposure is currently targeted at approximately 55% for the primary U.S. plan. The investment objective is to provide an attractive risk-adjusted return that will ensure the payment of benefits while protecting against the risk of substantial investment losses. Correlations among the asset classes are used to identify an asset mix that Autoliv believes will provide the most attractive returns. Long-term return forecasts for each asset class using historical data and other qualitative considerations to adjust for projected economic forecasts are used to set the expected rate of return for the entire portfolio. The Company has assumed a long-term rate of return on the U.S. plan assets of 7.08% for calculating the 2014 expense and 7.08% for calculating the 2015 expense as a result of the decrease in U.S. plan asset equity exposure. | |||||||||||||||||||||
The Company has assumed a long-term rate of return on the non-U.S. plan assets in a range of 2.60-6.15% for 2014. The closed U.K. plan which has a tar-geted and actual allocation of almost 100% debt instruments accounts for approximately 58% of the total non-U.S. plan assets. | |||||||||||||||||||||
Autoliv made contributions to the U.S. plan during 2014 and 2013 amounting to $6.7 million and $42.2 million, respectively. The increase in 2013 was due to an unscheduled voluntary contribution of $35 million to a U.S. pension plan in the fourth quarter 2013. Contributions to the U.K. plan during 2014 and 2013 amounted to $1.5 million and $0.3 million, respectively. The Company expects to contribute $6.8 million to its U.S. pension plan in 2015 and is currently projecting a -yearly funding at approximately the same level in the years thereafter. For the UK plan, which is the most significant non-U.S. pension plan, the Company expects to contribute $1.5 million in 2015 and in the years thereafter. | |||||||||||||||||||||
FAIR VALUE OF TOTAL PLAN ASSETS FOR YEARS ENDED DECEMBER 31 | |||||||||||||||||||||
ASSETS CATEGORY IN % WEIGHTED AVERAGE | U.S. | U.S. | Non-U.S. | ||||||||||||||||||
Target | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
allocation | |||||||||||||||||||||
Equity securities | 55 | 54 | 57 | 15 | 15 | ||||||||||||||||
Debt instruments | 45 | 46 | 43 | 63 | 59 | ||||||||||||||||
Other assets | — | — | — | 22 | 26 | ||||||||||||||||
Total | 100 | 100 | 100 | 100 | 100 | ||||||||||||||||
The following table summarizes the fair value of the Company’s plan assets: | |||||||||||||||||||||
Fair value | Fair value | ||||||||||||||||||||
measurement at | measurement at | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
US Equity | |||||||||||||||||||||
Large Cap | $ | 90.9 | $ | 82.5 | |||||||||||||||||
Mid Cap | 10.7 | 9.8 | |||||||||||||||||||
Small Cap | 10.7 | 9.7 | |||||||||||||||||||
Non-US Equity | 42.2 | 40.4 | |||||||||||||||||||
US Bonds | |||||||||||||||||||||
Aggregate | 115.9 | 96.5 | |||||||||||||||||||
Non-US Bonds | |||||||||||||||||||||
Corporate | 62.6 | 52.8 | |||||||||||||||||||
Aggregate | 5.7 | 5.7 | |||||||||||||||||||
Insurance Contracts | 15.7 | 19.2 | |||||||||||||||||||
Other Investments | 7.4 | 6.9 | |||||||||||||||||||
Total | $ | 361.8 | $ | 323.5 | |||||||||||||||||
The fair value measurement level within the fair value hierarchy (see note 3) is based on the lowest level of any input that is significant to the fair value measurement. After further analysis of the characteristics of certain investments (e.g. fair values based on net asset values held by common collective trusts) we have evaluated the fair value of plan assets should be reported as Level 2. | |||||||||||||||||||||
The estimated future benefit payments for the pension benefits reflect expected future service, as appropriate. The amount of benefit payments in a given year may vary from the projected amount, especially for the U.S. plan since historically this plan pays the majority of benefits as a lump sum, where the lump sum amounts vary with market interest rates. | |||||||||||||||||||||
PENSION BENEFITS EXPECTED PAYMENTS | U.S. | Non-U.S. | |||||||||||||||||||
2015 | $ | 13.3 | $ | 6.6 | |||||||||||||||||
2016 | $ | 15 | $ | 7 | |||||||||||||||||
2017 | $ | 17.4 | $ | 7.8 | |||||||||||||||||
2018 | $ | 18.5 | $ | 8.6 | |||||||||||||||||
2019 | $ | 20.8 | $ | 9.2 | |||||||||||||||||
Years 2020-2024 | $ | 129.5 | $ | 61.1 | |||||||||||||||||
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | |||||||||||||||||||||
The Company currently provides postretirement health care and life insurance benefits to most of its U.S. retirees. Such benefits in other countries are included in the tables below, but are not significant. | |||||||||||||||||||||
In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. Spouses for certain retirees are also eligible for reimbursement under the plan. Life insurance coverage is available for those who elect coverage under the retiree health plan. During 2014, the plan was amended to move from a self-insured model where employees were charged an estimated premium based on anticipated plan expenses for continued coverage, to a plan where retirees are provided a fixed contribution to a Health Retirement Account (HRA). Retirees can use the HRA funds to purchase insurance through a private exchange. The effect of this change was to decrease the benefit obligation related to the plan by $17.2 million as of December 31, 2014. Employees hired on or after January 1, 2004 are not eligible to participate in the plan. | |||||||||||||||||||||
The Company has reviewed the impact of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Medicare Part D) on its financial statements. Although the Plan may currently qualify for a subsidy from Medicare, the amount of the subsidy is so small that the expenses incurred to file for the subsidy may exceed the subsidy itself. Therefore, the impact of any subsidy is ignored in the calculations as Autoliv will not be filing for any reimbursement from Medicare. | |||||||||||||||||||||
CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Benefit obligation at beginning of year | $ | 34.3 | $ | 34.6 | $ | 30.8 | |||||||||||||||
Service cost | 1.3 | 1.4 | 1.1 | ||||||||||||||||||
Interest cost | 1.6 | 1.4 | 1.3 | ||||||||||||||||||
Actuarial (gain) loss due to: | |||||||||||||||||||||
Change in discount rate | 2.4 | (3.7 | ) | 1.9 | |||||||||||||||||
Experience | (1.1 | ) | 1 | (3.1 | ) | ||||||||||||||||
Other assumption changes | 0.4 | (1.0 | ) | 3.2 | |||||||||||||||||
Plan amendments | (17.2 | ) | — | — | |||||||||||||||||
Benefits paid | (0.8 | ) | (0.3 | ) | (0.5 | ) | |||||||||||||||
Other | 0.1 | 0.9 | -0.1 | ||||||||||||||||||
Benefit obligation at end of year | $ | 21 | $ | 34.3 | $ | 34.6 | |||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | $ | — | |||||||||||||||
Company contributions | 0.8 | 0.3 | 0.5 | ||||||||||||||||||
Benefits paid | -0.8 | -0.3 | -0.5 | ||||||||||||||||||
Fair value of plan assets at end of year | $— | $— | $— | ||||||||||||||||||
Accrued postretirement benefit cost recognized in the balance sheet | $ | (21.0 | ) | $ | (34.3 | ) | $ | (34.6 | ) | ||||||||||||
The liability for postretirement benefits other than pensions is classified as other non-current liabilities in the balance sheet. The short-term portion of the liability for postretirement benefits other than pensions is not significant. | |||||||||||||||||||||
COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE POST-RETIREMENT BENEFIT PLANS OTHER THAN PENSIONS | |||||||||||||||||||||
PERIOD ENDED DECEMBER 31 | 2014 | 2013 | 2012 | ||||||||||||||||||
Service cost | $ | 1.3 | $ | 1.4 | $ | 1.1 | |||||||||||||||
Interest cost | 1.6 | 1.4 | 1.3 | ||||||||||||||||||
Amortization of prior service cost | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||
Amortization of actuarial loss | -0.1 | -0.1 | -0.2 | ||||||||||||||||||
Net periodic benefit cost | $ | 2.7 | $ | 2.6 | $ | 2.1 | |||||||||||||||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX ASSOCIATED WITH POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 | |||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net actuarial loss (gain) | $ | (0.7 | ) | $ | (2.4 | ) | $ | (1.7 | ) | $ | (1.8 | ) | |||||||||
Prior service cost (credit) | (17.3 | ) | (0.2 | ) | (0.0 | ) | (0.0 | ) | |||||||||||||
Total accumulated other comprehensive income recognized in the balance sheet | $ | (18.0 | ) | $ | (2.6 | ) | $ | (1.7 | ) | $ | (1.8 | ) | |||||||||
For measuring end-of-year obligations at December 31, 2014, health care trends are not needed due to the fixed-cost nature of the benefits provided in 2014 and beyond. After 2014, all retirees receive a fixed dollar subsidy toward the cost of their health benefits. This individual retiree subsidy will not increase in future years. | |||||||||||||||||||||
The weighted average discount rate used to determine the U.S. postretirement benefit obligation was 4.20% in 2014 and 5.05% in 2013. The average discount rate used in determining the postretirement benefit cost was 5.05% in 2014, 4.25% in 2013 and 4.60% in 2012. | |||||||||||||||||||||
A one percentage point increase or decrease in the annual health care cost trend rates would have had no impact on the Company’s net benefit cost for the current period or on the accumulated postretirement benefit obligation at December 31, 2014. This is due to the fixed-dollar nature of the benefits provided under the plan. | |||||||||||||||||||||
The estimated net gain and prior service credit for the postretirement benefit plans that will be amortized from other comprehensive income into net benefit cost over the next fiscal year are approximately $(2.3) million combined. | |||||||||||||||||||||
The estimated future benefit payments for the postretirement benefits reflect expected future service as appropriate. | |||||||||||||||||||||
POSTRETIREMENT BENEFITS | EXPECTED | ||||||||||||||||||||
PAYMENTS | |||||||||||||||||||||
2015 | $ | 0.6 | |||||||||||||||||||
2016 | $ | 0.7 | |||||||||||||||||||
2017 | $ | 0.7 | |||||||||||||||||||
2018 | $ | 0.8 | |||||||||||||||||||
2019 | $ | 0.9 | |||||||||||||||||||
Years 2020 - 2024 | $ | 5.3 |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Information | 19. Segment Information | ||||||||||||
The Company has two operating segments (also known internally as reporting units): Passive Safety products (mainly various airbag and seatbelt products and components, including common electronic and sensing systems) and Active Safety products (radars, night vision systems and cameras with driver assist systems). The Company’s Active Safety operating segment represents less than 6% of the Company’s total sales in 2014. Due to the relative size of the Active Safety operating segment the Company has concluded that its operating segments met the criteria for combination for reporting purposes into a single reportable segment in 2014. | |||||||||||||
The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers. Sales to individual customers representing 10% or more of net sales were: | |||||||||||||
In 2014: GM 14% (incl. Opel, etc.), Ford 11% and Renault 11% (incl. Nissan). | |||||||||||||
In 2013: GM 14% (incl. Opel, etc.), Ford 11% and Renault 11% (incl. Nissan). | |||||||||||||
In 2012: GM 15% (incl. Opel, etc.), Ford 11% and Renault 11% (incl. Nissan). | |||||||||||||
NET SALES | 2014 | 2013 | 2012 | ||||||||||
Asia | $ | 3,097.90 | $ | 2,974.10 | $ | 2,752.20 | |||||||
Whereof: China | 1,521.60 | 1,405.50 | 1,097.60 | ||||||||||
Japan | 687.7 | 688.2 | 830.5 | ||||||||||
Rest of Asia | 888.6 | 880.4 | 824.1 | ||||||||||
Americas | 3,099.40 | 2,943.60 | 2,839.10 | ||||||||||
Europe | 3,043.20 | 2,885.70 | 2,675.40 | ||||||||||
Total | $ | 9,240.50 | $ | 8,803.40 | $ | 8,266.70 | |||||||
The Company has attributed net sales to the geographic area based on the location of the entity selling the final product. For 2012, the Company has reclassified approximately $31 million in sales of Active Safety products from the Americas to Europe which is reflected in the table above. This reclassification had no change to net sales or total sales of Active Safety products. | |||||||||||||
External sales in the U.S. amounted to $2,269 million, $2,122 million and $2,073 million in 2014, 2013 and 2012, respectively. Of the external sales, exports from the U.S. to other regions amounted to approximately $459 million, $488 million and $543 million in 2014, 2013 and 2012, respectively. | |||||||||||||
SALES BY PRODUCT | 2014 | 2013 | 2012 | ||||||||||
Airbags and associated products1) | $ | 5,951.30 | $ | 5,686.00 | $ | 5,392.00 | |||||||
Seatbelts and associated products | 2,800.10 | 2,772.70 | 2,656.50 | ||||||||||
Active Safety products | 489.1 | 344.7 | 218.2 | ||||||||||
Total | $ | 9,240.50 | $ | 8,803.40 | $ | 8,266.70 | |||||||
1) Includes sales of steering wheels, passive safety electronics and inflators. | |||||||||||||
LONG-LIVED ASSETS | 2014 | 2013 | |||||||||||
Asia | $ | 696 | $ | 612 | |||||||||
Whereof: China | 391 | 277 | |||||||||||
Japan | 98 | 106 | |||||||||||
Rest of Asia | 207 | 229 | |||||||||||
Americas | 1,906 | 1,927 | |||||||||||
Europe | 705 | 744 | |||||||||||
Total | $ | 3,307 | $ | 3,283 | |||||||||
Long-lived assets in the U.S. amounted to $1,733 million and $1,741 million for 2014 and 2013, respectively. For 2014, $1,476 million (2013, $1,485 million) of the long-lived assets in the U.S. refers to intangible assets, principally from acquisition goodwill. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share | 20. Earnings Per Share | ||||||||||||
The weighted average shares used in calculating earnings per share were: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average shares basic | 92.1 | 95.5 | 93.5 | ||||||||||
Effect of dilutive securities: | |||||||||||||
stock options/share awards | 0.3 | 0.4 | 0.3 | ||||||||||
equity units | — | — | 1.3 | ||||||||||
Weighted average shares diluted | 92.4 | 95.9 | 95.1 | ||||||||||
The number of shares outstanding increased on April 30, 2012 by 5.8 million due to the settlement of the remaining Equity Units. For 2012, 1.3 million shares were included in the dilutive weighted average share amount related to the Equity Units. Due to the settlement in April 2012 there is no effect in 2014 and 2013. For further information see Note 13. | |||||||||||||
There were no antidilutive shares outstanding for the years ended December 31, 2014 and 2013. In 2012 there were approximately 0.4 million common shares related to the Company’s Stock Incentive Plan, which were antidilutive and therefore not included in the computation of diluted EPS. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | 21. Subsequent Events |
There were no other reportable events subsequent to December 31, 2014. |
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data (unaudited) | 22. Quarterly Financial Data (unaudited) | ||||||||||||||||
2014 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
Net sales | $ | 2,295.80 | $ | 2,383.00 | $ | 2,208.00 | $ | 2,353.70 | |||||||||
Gross profit | 445.3 | 464.2 | 426.4 | 467.9 | |||||||||||||
Income before taxes | 184.3 | 122.9 | 156.5 | 203.3 | |||||||||||||
Net income | 131.1 | 83.2 | 106.7 | 148 | |||||||||||||
Net income attributable to controlling interest | 130.3 | 82.8 | 106.5 | 148.2 | |||||||||||||
Earnings per share | |||||||||||||||||
– basic | $ | 1.39 | $ | 0.89 | $ | 1.16 | $ | 1.65 | |||||||||
– diluted | $ | 1.38 | $ | 0.89 | $ | 1.16 | $ | 1.65 | |||||||||
Dividends paid | $ | 0.52 | $ | 0.52 | $ | 0.54 | $ | 0.54 | |||||||||
2013 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
Net sales | $ | 2,135.00 | $ | 2,197.50 | $ | 2,119.00 | $ | 2,351.90 | |||||||||
Gross profit | 414.3 | 430.5 | 404.9 | 454.9 | |||||||||||||
Income before taxes | 170.1 | 192.7 | 176.6 | 194.6 | |||||||||||||
Net income | 125.1 | 139.4 | 124.9 | 100.5 | |||||||||||||
Net income attributable to controlling interest | 123.5 | 138.7 | 123.9 | 99.7 | |||||||||||||
Earnings per share | |||||||||||||||||
– basic | $ | 1.29 | $ | 1.45 | $ | 1.29 | $ | 1.05 | |||||||||
– diluted | $ | 1.29 | $ | 1.44 | $ | 1.29 | $ | 1.04 | |||||||||
Dividends paid | $ | 0.5 | $ | 0.5 | $ | 0.5 | $ | 0.5 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION |
The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include Autoliv, Inc. and all companies over which Autoliv, Inc. directly or indirectly exercises control, which as a general rule means that the Company owns more than 50% of the voting rights. | |
Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or right to receive benefits from the VIE that could be significant to the VIE. | |
All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. | |
Investments in affiliated companies in which the Company exercises significant influence over the operations and financial policies, but does not control, are reported using the equity method of accounting, and therefore does not consolidate. Generally, the Company owns between 20 and 50 percent of such investments. | |
Business Combinations | BUSINESS COMBINATIONS |
Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their full fair values as of the date control is obtained, regardless of the percentage ownership in the acquired entity or how the acquisition was achieved. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent considerations are recognized and measured at fair value at the acquisition date and classified as either liabilities or equity based on appropriate GAAP. | |
Use of Estimates | USE OF ESTIMATES |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of retroactive price adjustments, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and product liabilities, restructuring charges, uncertain tax positions, valuation allowances and legal proceedings. Actual results could differ from those estimates. | |
Revenue Recognition | REVENUE RECOGNITION |
Revenues are recognized when there is evidence of a sales agreement, delivery of goods has occurred, the sales price is fixed and determinable and the collectability of revenue is reasonably assured. The Company records revenue from the sale of manufactured products upon shipment to customers and transfer of title and risk of loss under standard commercial terms (typically F.O.B. shipping point). In those limited instances where other terms are negotiated and agreed, revenue is recorded when title and risk of loss are transferred to the customer. | |
Accruals are made for retroactive price adjustments when probable and able to be reasonably estimated. | |
Net sales exclude taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers. | |
Cost of Sales | COST OF SALES |
Shipping and handling costs are included in Cost of sales in the Consolidated Statements of Net Income. Contracts to supply products which extend for periods in excess of one year are reviewed when conditions indicate that costs may exceed selling prices, resulting in losses. Losses on long-term supply contracts are recognized when probable and estimable. | |
Research, Development and Engineering | RESEARCH, DEVELOPMENT AND ENGINEERING (R,D&E) |
Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of income from contracts to perform engineering design and product development services. Such income is not significant in any period presented. | |
Certain engineering expenses related to long-term supply arrangements are capitalized when the defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. The aggregate amount of such assets is not significant in any period presented. | |
Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer-funded tooling are met or the criteria for capitalization as Property, Plant & Equipment (P,P&E) for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Net Income as Cost of sales. | |
Stock Based Compensation | STOCK BASED COMPENSATION |
The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation—Stock Compensation. The Company records the compensation expense for Restricted Stock Units (RSUs), awards under the Stock Incentive Plan, and stock options over the vesting period. | |
Income Tax | INCOME TAXES |
Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or refundable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. Current and non-current components of deferred tax balances are reported separately based on financial statement classification of the related asset or liability giving rise to the temporary difference. If a deferred tax asset or liability is not related to an asset or liability that exists for financial reporting purposes, including deferred tax assets related to carryforwards, the deferred tax asset or liability would be classified based on the expected reversal date of the temporary differences. Tax assets and liabilities are not offset unless attributable to the same tax jurisdiction and netting is possible according to law and expected to take place in the same period. | |
Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized and measured in the financial statements when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax bene-fits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized and measured if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. | |
Earnings Per Share | 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 and for common stock issued upon conversion of the equity units. | |
Cash Equivalents | CASH EQUIVALENTS |
The Company considers all highly liquid investment instruments purchased with a maturity of three months or less to be cash equivalents. | |
Receivables | RECEIVABLES |
The Company has guidelines for calculating the allowance for bad debts. In determining the amount of a bad debt allowance, management uses its judgment to consider factors such as the age of the receivables, the Company’s prior experience with the customer, the experience of other enterprises in the same industry, the customer’s ability to pay, and/or an appraisal of current economic conditions. Collateral is typically not required. There can be no assurance that the amount ultimately realized for receivables will not be materially different than that assumed in the calculation of the allowance. | |
Financial Instruments | FINANCIAL INSTRUMENTS |
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 use of such derivatives is in accordance with the strategies contained in the Company’s overall financial policy. The derivatives outstanding at year-end are foreign exchange swaps. All swaps principally match the terms and maturity of the underlying debt and no swaps have a maturity beyond 2015. | |
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 Statements of Net Income along with the offsetting 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 Statements of Net Income when the hedge transaction affects net earnings. There were no material reclassifications from OCI to the Consolidated Statements of Net Income in 2014 and, likewise, no material reclassifications are expected in 2015. Any ineffectiveness has been immaterial. | |
For further details on the Company’s financial instruments, see Note 3. | |
Inventories | INVENTORIES |
The cost of inventories is computed according to the first-in, first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost or market, with the market generally defined as net realizable value for finished goods and replacement cost for raw materials and work-in-process. Excess inventories are | |
quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT |
Property, Plant and Equipment are recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives. Depreciation on capital leases is recognized in the Consolidated Statements of Net Income over the shorter of the assets’ expected life or the lease contract terms. Repairs and maintenance are expensed as incurred. | |
The Company evaluates the carrying value of long-lived assets other than goodwill when indications of impairment are evident. Impairment testing is primarily done by using the cash flow method based on undiscounted future cash flows. | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS |
Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized, but is subject to at least an annual review for impairment. Other intangible assets, principally related to acquired technology and contractual relationships, are amortized over their useful lives which range from 3 to 25 years. | |
As of December 31, 2014 and 2013, the Company had goodwill of approximately $1.6 billion which nearly all is associated with the reporting unit Passive Safety Systems. Approximately $1.2 billion is goodwill associated with the 1997 merger of Autoliv AB and the Automotive Safety Products Division of Morton International, Inc. The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. The impairment testing of goodwill is based on two different reporting units: 1) Passive Safety Systems and 2) Active Safety Systems. | |
In conducting its impairment testing, the Company compares the estimated fair value of each of its reporting units to the related carrying value of the reporting unit. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its estimated fair value, an impairment loss is measured and recognized by the amount which the carrying amount of the goodwill exceeds the implied fair value of the goodwill determined by assigning the fair value of the reporting unit to all of the assets and liabilities of that unit. | |
The estimated fair value of the reporting unit is determined by the discounted cash flow method taking into account expected long-term operating cash-flow performance. The Company discounts projected operating cash flows using its weighted average cost of capital, including a risk premium to adjust for market risk. The estimated fair value is based on automotive industry volume projections which are based on third-party and internally developed forecasts and discount rate assumptions. Significant assumptions include terminal growth rates, terminal operating margin rates, future capital expenditures and working capital requirements. | |
To supplement this analysis, the Company compares the market value of its equity, calculated by reference to the quoted market prices of its shares, to the book value of its equity. | |
There were no impairments of goodwill from 2012 through 2014. | |
Insurance Deposits | INSURANCE DEPOSITS |
The Company has entered into liability and recall insurance contracts to mitigate the risk of costs associated with product recalls. These are accounted for under the deposit method of accounting based on the existing contractual terms. | |
Warranties and Recalls | WARRANTIES AND RECALLS |
The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs typically include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the defective part. | |
Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. | |
Restructuring Provisions | RESTRUCTURING PROVISIONS |
The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. | |
Estimates of restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates that re-structuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. | |
Pension Obligations | PENSION OBLIGATIONS |
The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefit that each employee will receive for services performed during a specified period of employment. | |
The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any) (see Note 18). The plan assets are measured at fair value. The inputs to the fair value measurement of the plan assets are mainly level 2 inputs (see Note 3). | |
Contingent Liabilities | CONTINGENT LIABILITIES |
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 or other matters (see Note 16). | |
The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. | |
The Company records liabilities for claims, lawsuits and proceedings when they are probable and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. | |
The Company believes, based on currently available information, that the resolution of outstanding matters, other than the antitrust matters described in Note 16, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. | |
However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. | |
Translation of Non-U. S. Subsidiaries and Receivables and Liabilities in Non-Functional Currencies | TRANSLATION OF NON-U.S. SUBSIDIARIES |
The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end rates of exchange. | |
The statement of operations of these subsidiaries is translated into U.S. dollars at the average rates of exchange for the year. Translation differences are reflected in equity as a component of OCI. | |
RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES | |
Receivables and liabilities not denominated in functional currencies are converted at year-end rates of exchange. Net transaction gains/(losses), reflected in the Consolidated Statements of Net Income amounted to $(3.8) million in 2014, $(26.3) million in 2013 and $(5.6) million in 2012, and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other financial items, net if they relate to financial receivables and liabilities. | |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED 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. | |
Reclassifications | RECLASSIFICATIONS |
Certain prior-year amounts have been reclassified to conform to current year presentation. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 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 Consolidated Balance Sheets at December 31, 2014 and 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. | ||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED | Nominal | Derivative asset | Derivative liability | Nominal | Derivative asset | Derivative liability | |||||||||||||||||||
AS HEDGING INSTRUMENTS | volume | (Other current | (Other current | volume | (Other current | (Other current | |||||||||||||||||||
assets) | liabilities) | assets) | liabilities) | ||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 459.1 | 1) | $ | 1.3 | 2) | $ | 0.4 | 3) | $ | 504.1 | 4) | $ | 1.7 | 5) | $ | 2.8 | 6) | |||||||
TOTAL | $ | 459.1 | $ | 1.3 | $ | 0.4 | $ | 504.1 | $ | 1.7 | $ | 2.8 | |||||||||||||
1) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 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 | ||||||||||||||||||||||||
31-Dec-14 | DECEMBER 31, 2014 | DECEMBER 31, 2013 | DECEMBER 31, 2013 | ||||||||||||||||||||||
CARRYING VALUE1) | FAIR VALUE | CARRYING VALUE1) | FAIR VALUE | ||||||||||||||||||||||
LONG-TERM DEBT | |||||||||||||||||||||||||
U.S. Private placement | $ | 1,424.20 | $ | 1,510.20 | $ | 177.6 | $ | 187.7 | |||||||||||||||||
Medium-term notes | 83.2 | 86.3 | 99.9 | 100.5 | |||||||||||||||||||||
Other long-term debt | 13.8 | 13.8 | 1.6 | 1.6 | |||||||||||||||||||||
TOTAL | $ | 1,521.20 | $ | 1,610.30 | $ | 279.1 | $ | 289.8 | |||||||||||||||||
SHORT-TERM DEBT | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 57.8 | $ | 57.8 | $ | 65.6 | $ | 65.6 | |||||||||||||||||
Short-term portion of long-term debt | 21.8 | 21.8 | 167.2 | 172.6 | |||||||||||||||||||||
Notes2) | — | — | 106.6 | 107.6 | |||||||||||||||||||||
TOTAL | $ | 79.6 | $ | 79.6 | $ | 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. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Income Before Income Taxes | |||||||||||||
INCOME BEFORE INCOME TAXES | 2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 59.5 | $ | 169.4 | $ | 171.2 | |||||||
Non-U.S. | 607.5 | 564.6 | 497.4 | ||||||||||
Total | $ | 667 | $ | 734 | $ | 668.6 | |||||||
Schedule of Provision for Income Taxes | |||||||||||||
PROVISION FOR INCOME TAXES | 2014 | 2013 | 2012 | ||||||||||
Current | |||||||||||||
U.S. federal | $ | 32.2 | $ | 42.7 | $ | 62.8 | |||||||
Non-U.S. | 166.2 | 164.7 | 146.2 | ||||||||||
U.S. state and local | 0.4 | 1.6 | 5.8 | ||||||||||
Deferred | |||||||||||||
U.S. federal | (3.2 | ) | 11.7 | 0.2 | |||||||||
Non-U.S. | 2.9 | 22.2 | (29.6 | ) | |||||||||
U.S. state and local | (0.5 | ) | 1.2 | (2.4 | ) | ||||||||
Total income tax expense (benefit) | $ | 198 | $ | 244.1 | $ | 183 | |||||||
Schedule of Effective Income Tax Rate | EFFECTIVE INCOME TAX RATE | 2014 | 2013 | 2012 | |||||||||
U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign tax rate variances | (8.5 | ) | (8.2 | ) | (7.6 | ) | |||||||
Tax credits | (4.9 | ) | (4.5 | ) | (3.2 | ) | |||||||
Change in Valuation Allowances | 0.6 | 5.3 | (1.1 | ) | |||||||||
Current year losses with no benefit | 5.9 | 4 | 3.2 | ||||||||||
Net operating loss carry-forwards | (0.0 | ) | (0.1 | ) | (0.2 | ) | |||||||
Changes in tax reserves | (0.1 | ) | 1.1 | (0.0 | ) | ||||||||
Cost of double taxation | 2.1 | 0.6 | 0.9 | ||||||||||
Earnings of equity investments | (0.4 | ) | (0.4 | ) | (0.4 | ) | |||||||
Withholding taxes | 0.6 | 1 | 1.6 | ||||||||||
State taxes, net of federal benefit | 0 | 0.2 | 0.3 | ||||||||||
Statutory Investment Allowances | 0 | 0 | (2.3 | ) | |||||||||
Antitrust Settlement | 0 | 0 | 0.9 | ||||||||||
Other, net | (0.6 | ) | (0.8 | ) | 0.3 | ||||||||
Effective income tax rate | 29.7 | % | 33.2 | % | 27.4 | % | |||||||
Schedule of Tabular Presentation of Tax Benefits Unrecognized | |||||||||||||
TABULAR PRESENTATION OF TAX BENEFITS UNRECOGNIZED | 2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits at beginning of year | $ | 22.7 | $ | 14.7 | $ | 14 | |||||||
Gross amounts of increases and decreases: | |||||||||||||
Increases as a result of tax positions taken during a prior period | 0.6 | 7.2 | 1.3 | ||||||||||
Decreases as a result of tax positions taken during a prior period | (0.0 | ) | (0.3 | ) | (0.3 | ) | |||||||
Increases as a result of tax positions taken during the current period | 3.1 | 2.9 | 0.6 | ||||||||||
Decreases as a result of tax positions taken during the current period | 0 | 0 | 0 | ||||||||||
Decreases relating to settlements with taxing authorities | (2.4 | ) | (0.8 | ) | (0.3 | ) | |||||||
Decreases resulting from the lapse of the applicable statute of limitations | (1.2 | ) | (0.6 | ) | (1.3 | ) | |||||||
Translation Difference | (1.3 | ) | (0.4 | ) | 0.7 | ||||||||
Total unrecognized tax benefits at end of year | $ | 21.5 | $ | 22.7 | $ | 14.7 | |||||||
Schedule of Deferred Taxes | |||||||||||||
DEFERRED TAXES DECEMBER 31 | 2014 | 2013 | 2012 | ||||||||||
Assets | |||||||||||||
Provisions | $ | 90.6 | $ | 97.2 | $ | 105.9 | |||||||
Costs capitalized for tax | 12 | 18.5 | 11.5 | ||||||||||
Property, plant and equipment | 18.9 | 20.9 | 26.1 | ||||||||||
Retirement Plans | 73.6 | 49.9 | 99.7 | ||||||||||
Tax receivables, principally NOL’s | 166.2 | 136.6 | 104.9 | ||||||||||
Deferred tax assets before allowances | $ | 361.3 | $ | 323.1 | $ | 348.1 | |||||||
Valuation allowances | (150.1 | ) | (115.5 | ) | (44.8 | ) | |||||||
Total | $ | 211.2 | $ | 207.6 | $ | 303.3 | |||||||
Liabilities | |||||||||||||
Acquired intangibles | $ | (22.0 | ) | $ | (25.3 | ) | $ | (29.2 | ) | ||||
Statutory tax allowances | (0.7 | ) | (1.3 | ) | (1.5 | ) | |||||||
Insurance deposit | (5.0 | ) | (6.4 | ) | (7.5 | ) | |||||||
Distribution taxes | (34.0 | ) | (38.1 | ) | (43.0 | ) | |||||||
Other | (2.6 | ) | (3.0 | ) | (2.5 | ) | |||||||
Total | $ | (64.3 | ) | $ | (74.1 | ) | $ | (83.7 | ) | ||||
Net deferred tax asset | $ | 146.9 | $ | 133.5 | $ | 219.6 | |||||||
Schedule of Valuation Allowances Against Deferred Tax Assets | VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 | 2014 | 2013 | 2012 | |||||||||
Allowances at beginning of year | $ | 115.5 | $ | 44.8 | $ | 41.7 | |||||||
Benefits reserved current year | 55.2 | 76.1 | 15.7 | ||||||||||
Benefits recognized current year | (0.7 | ) | (1.8 | ) | (11.7 | ) | |||||||
Write-offs and other changes | (3.0 | ) | (0.0 | ) | (0.0 | ) | |||||||
Translation difference | (16.9 | ) | (3.6 | ) | (0.9 | ) | |||||||
Allowances at end of year | $ | 150.1 | $ | 115.5 | $ | 44.8 | |||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Receivables | |||||||||||||
31-Dec | 2014 | 2013 | 2012 | ||||||||||
Receivables | $ | 1,713.20 | $ | 1,692.60 | $ | 1,516.60 | |||||||
Allowance at beginning of year | $ | (4.6 | ) | $ | (7.3 | ) | $ | (8.3 | ) | ||||
Reversal of allowance | 0.9 | 4.1 | 2.1 | ||||||||||
Addition to allowance | (4.1 | ) | (2.2 | ) | (2.1 | ) | |||||||
Write-off against allowance | 0.6 | 0.9 | 1.2 | ||||||||||
Translation difference | 0.3 | -0.1 | -0.2 | ||||||||||
Allowance at end of year | $ | (6.9 | ) | $ | (4.6 | ) | $ | (7.3 | ) | ||||
Total receivables, net of allowance | $ | 1,706.30 | $ | 1,688.00 | $ | 1,509.30 | |||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components of Inventories | |||||||||||||
31-Dec | 2014 | 2013 | 2012 | ||||||||||
Raw material | $ | 312.2 | $ | 314.8 | $ | 287.7 | |||||||
Work in progress | 240.6 | 232.9 | 225.9 | ||||||||||
Finished products | 206 | 201.9 | 180.9 | ||||||||||
Inventories | $ | 758.8 | $ | 749.6 | $ | 694.5 | |||||||
Inventory reserve at beginning of year | $ | (87.8 | ) | $ | (83.5 | ) | $ | (76.1 | ) | ||||
Reversal of reserve | 5.1 | 5.1 | 5.3 | ||||||||||
Addition to reserve | (10.9 | ) | (20.8 | ) | (22.9 | ) | |||||||
Write-off against reserve | 4 | 10.5 | 10.4 | ||||||||||
Translation difference | 6.3 | 0.9 | -0.2 | ||||||||||
Inventory reserve at end of year | $ | (83.3 | ) | $ | (87.8 | ) | $ | (83.5 | ) | ||||
Total inventories, net of reserve | $ | 675.5 | $ | 661.8 | $ | 611 | |||||||
Investments_and_Other_Noncurre1
Investments and Other Non-current Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Schedule of Investments and Other Non-Current Assets | |||||||||
31-Dec | 2014 | 2013 | |||||||
Equity method investments | $ | 26.8 | $ | 26.6 | |||||
Deferred tax assets | 139 | 122.4 | |||||||
Income tax receivables | 54.7 | 54.7 | |||||||
Long-term interest bearing deposit (insurance arrangement) | — | 20.2 | |||||||
Other non-current assets | 34.8 | 35.1 | |||||||
Investments and other non-current assets | $ | 255.3 | $ | 259 | |||||
Schedule of Significant Equity Method Investments and Respective Percentage of Ownership | The most significant equity method investments and the respective percentage of ownership are as follows: | ||||||||
COUNTRY | Ownership % | Company name | |||||||
France | 49 | % | EAK SNC Composants pour L’Industrie Automobile | ||||||
Malaysia | 49 | % | Autoliv-Hirotako Safety Sdn Bhd (parent and subsidiaries) | ||||||
China | 30 | % | Changchun Hongguang-Autoliv Vehicle Safety Systems Co. Ltd. |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment | |||||||||||||
31-Dec | 2014 | 2013 | Estimated | ||||||||||
life | |||||||||||||
Land and land improvements | $ | 106 | $ | 114.8 | n/a to 15 | ||||||||
Machinery and equipment | 3,160.00 | 3,199.20 | 8-Mar | ||||||||||
Buildings | 813.2 | 801.1 | 20-40 | ||||||||||
Construction in progress | 263.2 | 253.2 | n/a | ||||||||||
Property, plant and equipment | $ | 4,342.40 | $ | 4,368.30 | |||||||||
Less accumulated depreciation | -2,952.20 | -3,032.10 | |||||||||||
Net of depreciation | $ | 1,390.20 | $ | 1,336.20 | |||||||||
Depreciation Expense | |||||||||||||
DEPRECIATION INCLUDED IN | 2014 | 2013 | 2012 | ||||||||||
Cost of sales | $ | 258.7 | $ | 237.2 | $ | 225.4 | |||||||
Selling, general and administrative expenses | 8 | 8.2 | 8.2 | ||||||||||
Research, development and engineering expenses | 22.7 | 20.2 | 19.4 | ||||||||||
Total | $ | 289.4 | $ | 265.6 | $ | 253 | |||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Schedule of Goodwill and Intangible Assets | |||||||||
UNAMORTIZED INTANGIBLES | 2014 | 2013 | |||||||
Goodwill | |||||||||
Carrying amount at beginning of year | $ | 1,610.10 | $ | 1,610.80 | |||||
Acquisitions and purchase price adjustments | — | — | |||||||
Translation differences | -16.1 | -0.7 | |||||||
Carrying amount at end of year | $ | 1,594.00 | $ | 1,610.10 | |||||
AMORTIZED INTANGIBLES | 2014 | 2013 | |||||||
Gross carrying amount | $ | 394.6 | $ | 398.9 | |||||
Accumulated amortization | -327.4 | -321.6 | |||||||
Carrying value | $ | 67.2 | $ | 77.3 |
Restructuring_and_Other_Liabil1
Restructuring and Other Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of Change in Balance Sheet Position of Restructuring Reserves | 2014 | ||||||||||||||||||||||||
In 2014, the employee-related restructuring provisions, made on a case-by-case basis, relate mainly to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2013 to December 31, 2014. | |||||||||||||||||||||||||
December 31 | Provision/ | Provision/ | Cash | Translation | December 31 | ||||||||||||||||||||
2013 | Charge | Reversal | payments | difference | 2014 | ||||||||||||||||||||
Restructuring employee-related | $ | 93.9 | $ | 42.6 | $ | (2.3 | ) | $ | (44.2 | ) | $ | (10.4 | ) | $ | 79.6 | ||||||||||
Other | 0.3 | 0.2 | (0.0 | ) | (0.3 | ) | 0 | 0.2 | |||||||||||||||||
Total reserve | $ | 94.2 | $ | 42.8 | $ | (2.3 | ) | $ | (44.5 | ) | $ | (10.4 | ) | $ | 79.8 | ||||||||||
2013 | |||||||||||||||||||||||||
In 2013, the employee-related restructuring provisions, made on a case-by-case basis, relate mainly to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. 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 | ) | — | 0.3 | |||||||||||||||||
Total reserve | $ | 75.8 | $ | 40.4 | $ | (4.9 | ) | $ | (20.4 | ) | $ | 3.3 | $ | 94.2 | |||||||||||
2012 | |||||||||||||||||||||||||
In 2012, the employee-related restructuring provisions, made on a case-by-case basis, relate mainly to headcount reductions in Europe. The cash payments mainly relate to high-cost countries in Europe. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2011 to December 31, 2012. | |||||||||||||||||||||||||
December 31 | Provision/ | Provision/ | Cash | Translation | December 31 | ||||||||||||||||||||
2011 | Charge | Reversal | payments | difference | 2012 | ||||||||||||||||||||
Restructuring employee-related | $ | 31.4 | $ | 76.6 | $ | (1.8 | ) | $ | (33.3 | ) | $ | 2 | $ | 74.9 | |||||||||||
Other | 0.9 | 0.3 | (0.3 | ) | (0.0 | ) | — | 0.9 | |||||||||||||||||
Total reserve | $ | 32.3 | $ | 76.9 | $ | (2.1 | ) | $ | (33.3 | ) | $ | 2 | $ | 75.8 | |||||||||||
Product_Related_Liabilities_Ta
Product Related Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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. | ||||||||||||
31-Dec | 2014 | 2013 | 2012 | ||||||||||
Reserve at beginning of the year | $ | 36.4 | $ | 29.9 | $ | 33 | |||||||
Change in reserve | 37.9 | 21.3 | 19.3 | ||||||||||
Cash payments | (20.9 | ) | (15.2 | ) | (22.7 | ) | |||||||
Translation difference | (2.1 | ) | 0.4 | 0.3 | |||||||||
Reserve at end of the year | $ | 51.3 | $ | 36.4 | $ | 29.9 |
Debt_and_Credit_Agreements_Tab
Debt and Credit Agreements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Debt Profile | The table below shows debt maturity as cash flow in the upper part which is reconciled with reported debt in the last row. For a description of hedging instruments used as part of debt management, see the Financial Instruments section of Note 1 and Note 3. | ||||||||||||||||||||||||||||||||
DEBT PROFILE | |||||||||||||||||||||||||||||||||
PRINCIPAL AMOUNT BY EXPECTED MATURITY | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | Total | |||||||||||||||||||||||||
long-term | |||||||||||||||||||||||||||||||||
U.S. private placement notes (incl. DRD1)) | $ | — | $ | — | $ | 105 | $ | — | $ | 268 | $ | 1,042.00 | $ | 1,415.00 | $ | 1,415.00 | |||||||||||||||||
(Weighted average interest rate 3.9%) | |||||||||||||||||||||||||||||||||
Overdraft/Other short-term debt (incl. DRD1)) | 56.9 | — | — | — | — | — | — | 56.9 | |||||||||||||||||||||||||
(Weighted average interest rate 4.1%) | |||||||||||||||||||||||||||||||||
Medium-term notes | — | — | 83.2 | — | — | — | 83.2 | 83.2 | |||||||||||||||||||||||||
(Weighted average interest rate 1.9%) | |||||||||||||||||||||||||||||||||
Other long-term loans, incl. current portion2) | 21.8 | 13.9 | — | — | — | — | 13.9 | 35.7 | |||||||||||||||||||||||||
(Weighted average interest rate 11.1%) | |||||||||||||||||||||||||||||||||
Total debt as cash flow, (incl. DRD1)) | $ | 78.7 | $ | 13.9 | $ | 188.2 | $ | — | $ | 268 | $ | 1,042.00 | $ | 1,512.10 | $ | 1,590.80 | |||||||||||||||||
DRD adjustment | 0.9 | — | 0.9 | — | 8.2 | — | 9.1 | 10 | |||||||||||||||||||||||||
Total debt as reported | $ | 79.6 | $ | 13.9 | $ | 189.1 | $ | — | $ | 276.2 | $ | 1,042.00 | $ | 1,521.20 | $ | 1,600.80 | |||||||||||||||||
1) Debt Related Derivatives (DRD), i.e. the fair value adjustments associated with hedging instruments as adjustments to the carrying value of the underlying debt. Included in the DRD is also the unamortized fair value adjustment related to discontinued fair value hedges which will be amortized over the remaining life of the debt. 2) Primarily external loans drawn locally in Brazil, Turkey and Russia. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Dividends Paid | |||||||||||||
DIVIDENDS | 2014 | 2013 | 2012 | ||||||||||
Cash dividend paid per share | $ | 2.12 | $ | 2 | $ | 1.89 | |||||||
Cash dividend declared per share | $ | 2.14 | $ | 2.02 | $ | 1.94 | |||||||
Other Comprehensive Income (Loss) | |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS)/ ENDING BALANCE1) | 2014 | 2013 | 2012 | ||||||||||
Cumulative translation adjustments | $ | (155.1 | ) | $ | 49.4 | $ | 67.2 | ||||||
Net pension liability | (97.9 | ) | (48.9 | ) | (107.7 | ) | |||||||
Total (ending balance) | $ | (253.0 | ) | $ | 0.5 | $ | (40.5 | ) | |||||
Deferred taxes on the pension liability | $ | 43.4 | $ | 21.4 | $ | 59.7 | |||||||
1) | The components of Other Comprehensive Income (Loss) are net of any related income tax effects. | ||||||||||||
Share Repurchase Program | |||||||||||||
SHARES | 2014 | 2013 | 2012 | ||||||||||
Shares repurchased (shares in millions) | 6.2 | 1.6 | — | ||||||||||
Cash paid for shares | $ | 616 | $ | 147.9 | $ | — |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Acquisitions and Divestitures of Businesses, Net of Cash Acquired | The Company’s acquisitions and divestitures of businesses, net of cash acquired were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Acquisitions: | |||||||||||||
Cash paid for prior year acquisitions | $ | (1.4 | ) | $ | (2.0 | ) | $ | (1.8 | ) | ||||
Acquisition of businesses, net of cash acquired | $ | (1.4 | ) | $ | (2.0 | ) | $ | (1.8 | ) | ||||
2014 | 2013 | 2012 | |||||||||||
Divestitures of business, net of cash disposed | $ | 2.4 | $ | — | $ | 5.2 | |||||||
Schedule of Payments for Interest and Income Taxes Table | Payments for interest and income taxes were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest | $ | 57 | $ | 33 | $ | 40 | |||||||
Income taxes | $ | 206 | $ | 206 | $ | 237 | |||||||
Stock_Incentive_Plan_Tables
Stock Incentive Plan (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Weighted Average Fair Value of Stock Options Granted | The average grant date fair value of stock options granted during 2014, 2013 and 2012 was estimated at $17.35, $15.61 and $18.01 per share, respectively, using the Black-Scholes option-pricing model based on the following assumptions: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate | 1.1 | % | 0.9 | % | 0.9 | % | |||||||
Dividend yield | 2.3 | % | 2.3 | % | 2.8 | % | |||||||
Expected life in years | 3.9 | 4.1 | 4.1 | ||||||||||
Expected volatility | 28 | % | 34 | % | 42 | % | |||||||
Schedule of Number of Restricted Stock Units | Information on the number of RSUs and stock options related to the Plan during the period of 2012 to 2014 is as follows: | ||||||||||||
RSUs | 2014 | 2013 | 2012 | ||||||||||
Outstanding at beginning of year | 204,277 | 211,618 | 320,122 | ||||||||||
Granted | 64,223 | 91,230 | 72,900 | ||||||||||
Shares issued | (56,184 | ) | (84,342 | ) | (172,212 | ) | |||||||
Cancelled/Forfeited/Expired | (14,031 | ) | (14,229 | ) | (9,192 | ) | |||||||
Outstanding at end of year | 198,285 | 204,277 | 211,618 | ||||||||||
Schedule of Stock Options | |||||||||||||
STOCK OPTIONS | Number of options | Weighted average | |||||||||||
exercise price | |||||||||||||
Outstanding at Dec 31, 2011 | 1,073,002 | $ | 46.26 | ||||||||||
Granted | 218,695 | 67 | |||||||||||
Exercised | (254,440 | ) | 33.26 | ||||||||||
Cancelled/Forfeited/Expired | (25,027 | ) | 50.59 | ||||||||||
Outstanding at Dec 31, 2012 | 1,012,230 | $ | 53.91 | ||||||||||
Granted | 273,541 | 69.18 | |||||||||||
Exercised | (437,751 | ) | 53.58 | ||||||||||
Cancelled/Forfeited/Expired | (16,319 | ) | 49.25 | ||||||||||
Outstanding at Dec 31, 2013 | 831,701 | $ | 59.2 | ||||||||||
Granted | 192,665 | 94.87 | |||||||||||
Exercised | (471,732 | ) | 60.78 | ||||||||||
Cancelled/Forfeited/Expired | (13,809 | ) | 66.23 | ||||||||||
Outstanding at Dec 31, 2014 | 538,825 | $ | 70.38 | ||||||||||
Schedule of Options Exercisable | OPTIONS EXERCISABLE | ||||||||||||
At December 31, 2012 | 796,720 | $ | 50.37 | ||||||||||
At December 31, 2013 | 559,483 | $ | 54.34 | ||||||||||
At December 31, 2014 | 349,190 | $ | 57.08 | ||||||||||
Summary of Stock Options Outstanding and Exercisable | The following summarizes information about stock options outstanding and exercisable on December 31, 2014: | ||||||||||||
RANGE OF EXERCISE PRICES | Number | Remaining | Weighted | ||||||||||
outstanding | contract life | average | |||||||||||
(in years) | exercise | ||||||||||||
price | |||||||||||||
$16.31 - $19.96 | 41,950 | 4.14 | $ | 16.31 | |||||||||
$40.26 - $49.60 | 63,182 | 3.65 | $ | 46.14 | |||||||||
$51.67 - $59.01 | 45,150 | 2.64 | $ | 55.27 | |||||||||
$67.00 - $69.18 | 148,326 | 7.79 | $ | 68.41 | |||||||||
$72.95 - $94.87 | 240,217 | 8.51 | $ | 90.25 | |||||||||
538,825 | 6.91 | $ | 70.38 | ||||||||||
RANGE OF EXERCISE PRICES | Number | Remaining | Weighted | ||||||||||
exercisable | contract life | average | |||||||||||
(in years) | exercise | ||||||||||||
price | |||||||||||||
$16.31 - $19.96 | 41,950 | 4.14 | $ | 16.31 | |||||||||
$40.26 - $49.60 | 63,182 | 3.65 | $ | 46.14 | |||||||||
$51.67 - $59.01 | 45,150 | 2.64 | $ | 55.27 | |||||||||
$67.00 - $69.18 | 148,326 | 7.79 | $ | 68.41 | |||||||||
$72.95 - $94.87 | 50,582 | 6.14 | $ | 72.95 | |||||||||
349,190 | 5.7 | $ | 57.08 |
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Pension Plans, Defined Benefit | |||||||||||||||||||||
Schedule of Changes in Benefit Obligations and Plan Assets | CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR THE PERIODS ENDED DECEMBER 31 | ||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Benefit obligation at beginning of year | $ | 265.8 | $ | 314.2 | $ | 205 | $ | 195.4 | |||||||||||||
Service cost | 7.3 | 9.3 | 13.5 | 13.5 | |||||||||||||||||
Interest cost | 13 | 12.8 | 8.2 | 7.3 | |||||||||||||||||
Actuarial (gain) loss due to: | |||||||||||||||||||||
Change in discount rate | 58.9 | (53.1 | ) | 40.4 | (8.3 | ) | |||||||||||||||
Experience | (0.5 | ) | (17.5 | ) | 1 | 2.3 | |||||||||||||||
Other assumption changes | 18.4 | 7.1 | (1.9 | ) | 3 | ||||||||||||||||
Plan participants’ contributions | — | — | 0.2 | 0.2 | |||||||||||||||||
Plan amendments | — | — | 0.9 | 0.5 | |||||||||||||||||
Benefits paid | (5.9 | ) | (7.0 | ) | (8.3 | ) | (7.7 | ) | |||||||||||||
Curtailments | — | — | 0.1 | 0.1 | |||||||||||||||||
Special termination benefits | — | — | — | 0.5 | |||||||||||||||||
Other | — | — | (0.5 | ) | (0.9 | ) | |||||||||||||||
Translation difference | — | — | (21.3 | ) | (0.9 | ) | |||||||||||||||
Benefit obligation at end of year | $ | 357 | $ | 265.8 | $ | 237.3 | $ | 205 | |||||||||||||
Fair value of plan assets at beginning of year | $ | 223.6 | $ | 159.4 | $ | 99.9 | $ | 94.8 | |||||||||||||
Actual return on plan assets | 29.4 | 29 | 14.2 | 3.4 | |||||||||||||||||
Company contributions | 6.7 | 42.2 | 9.4 | 8 | |||||||||||||||||
Plan participants’ contributions | — | — | 0.2 | 0.2 | |||||||||||||||||
Benefits paid | (5.9 | ) | (7.0 | ) | (8.3 | ) | (7.7 | ) | |||||||||||||
Other | — | — | (0.2 | ) | (0.2 | ) | |||||||||||||||
Translation difference | — | — | -7.2 | 1.4 | |||||||||||||||||
Fair value of plan assets at year end | $ | 253.8 | $ | 223.6 | $ | 108 | $ | 99.9 | |||||||||||||
Funded status recognized in the balance sheet | $ | (103.2 | ) | $ | (42.2 | ) | $ | (129.3 | ) | $ | (105.1 | ) | |||||||||
Schedule of Components of Net Periodic Benefit Cost | COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS | ||||||||||||||||||||
U.S. | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 7.3 | $ | 9.3 | $ | 8.3 | |||||||||||||||
Interest cost | 13 | 12.8 | 12.3 | ||||||||||||||||||
Expected return on plan assets | (15.4 | ) | (11.6 | ) | (10.2 | ) | |||||||||||||||
Amortization of prior service credit | (1.0 | ) | (1.0 | ) | (1.0 | ) | |||||||||||||||
Amortization of actuarial loss | 1.9 | 10 | 8.5 | ||||||||||||||||||
Net periodic benefit cost | $ | 5.8 | $ | 19.5 | $ | 17.9 | |||||||||||||||
Non-U.S. | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 13.5 | $ | 13.5 | $ | 12 | |||||||||||||||
Interest cost | 8.2 | 7.3 | 7.1 | ||||||||||||||||||
Expected return on plan assets | (4.5 | ) | (4.0 | ) | (3.9 | ) | |||||||||||||||
Amortization of prior service costs | 0.3 | 0.2 | 0.1 | ||||||||||||||||||
Amortization of actuarial loss | 1.1 | 2.5 | 1.4 | ||||||||||||||||||
Settlement loss (gain) | 0.1 | 0.2 | 1 | ||||||||||||||||||
Curtailment loss (gain) | 0.1 | 0.1 | — | ||||||||||||||||||
Special termination benefits | — | 0.5 | 0.1 | ||||||||||||||||||
Net periodic benefit cost | $ | 18.8 | $ | 20.3 | $ | 17.8 | |||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income Before Tax | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX AS OF DECEMBER 31 | ||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net actuarial loss (gain) | $ | 106.6 | $ | 45.6 | $ | 53.8 | $ | 29.9 | |||||||||||||
Prior service (credit) cost | -1.9 | -2.9 | 2.6 | 2.2 | |||||||||||||||||
Total accumulated other comprehensive income recognized in the balance sheet | $ | 104.7 | $ | 42.7 | $ | 56.4 | $ | 32.1 | |||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income Before Tax | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX FOR THE PERIODS ENDED DECEMBER 31 | ||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | $ | 42.7 | $ | 132.7 | $ | 32.1 | $ | 35.6 | |||||||||||||
Net actuarial loss (gain) | 62.8 | (81.0 | ) | 30.3 | (1.0 | ) | |||||||||||||||
Prior service cost | — | — | 0.9 | 0.5 | |||||||||||||||||
Amortization of prior service credit (cost) | 1 | 1 | (0.3 | ) | (0.2 | ) | |||||||||||||||
Amortization of actuarial loss | (1.8 | ) | (10.0 | ) | (1.2 | ) | (2.7 | ) | |||||||||||||
Translation difference | — | — | (5.4 | ) | (0.1 | ) | |||||||||||||||
Total retirement benefit recognized in accumulated other comprehensive income at end of year | $ | 104.7 | $ | 42.7 | $ | 56.4 | $ | 32.1 | |||||||||||||
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31 | ||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Projected Benefit Obligation (PBO) | $ | 357 | n/a | $ | 155.4 | $ | 109.5 | ||||||||||||||
Accumulated Benefit Obligation (ABO) | $ | 278.5 | n/a | $ | 124.1 | $ | 84.7 | ||||||||||||||
Fair value of plan assets | $ | 253.8 | n/a | $ | 29.6 | $ | 4.9 | ||||||||||||||
Schedule of Assumptions Used Benefit Obligations | ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31 | ||||||||||||||||||||
U.S. | Non-U.S.1) | ||||||||||||||||||||
% WEIGHTED AVERAGE | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 4 | 5 | 0.50 - 4.00 | 1.00 - 5.00 | |||||||||||||||||
Rate of increases in compensation level | 3.5 | 3.5 | 2.25 - 5.00 | 2.25 - 5.00 | |||||||||||||||||
Schedule of Fair Value of Total Plan Assets | FAIR VALUE OF TOTAL PLAN ASSETS FOR YEARS ENDED DECEMBER 31 | ||||||||||||||||||||
ASSETS CATEGORY IN % WEIGHTED AVERAGE | U.S. | U.S. | Non-U.S. | ||||||||||||||||||
Target | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
allocation | |||||||||||||||||||||
Equity securities | 55 | 54 | 57 | 15 | 15 | ||||||||||||||||
Debt instruments | 45 | 46 | 43 | 63 | 59 | ||||||||||||||||
Other assets | — | — | — | 22 | 26 | ||||||||||||||||
Total | 100 | 100 | 100 | 100 | 100 | ||||||||||||||||
Schedule of Fair Value of Company's Plan Assets | The following table summarizes the fair value of the Company’s plan assets: | ||||||||||||||||||||
Fair value | Fair value | ||||||||||||||||||||
measurement at | measurement at | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
US Equity | |||||||||||||||||||||
Large Cap | $ | 90.9 | $ | 82.5 | |||||||||||||||||
Mid Cap | 10.7 | 9.8 | |||||||||||||||||||
Small Cap | 10.7 | 9.7 | |||||||||||||||||||
Non-US Equity | 42.2 | 40.4 | |||||||||||||||||||
US Bonds | |||||||||||||||||||||
Aggregate | 115.9 | 96.5 | |||||||||||||||||||
Non-US Bonds | |||||||||||||||||||||
Corporate | 62.6 | 52.8 | |||||||||||||||||||
Aggregate | 5.7 | 5.7 | |||||||||||||||||||
Insurance Contracts | 15.7 | 19.2 | |||||||||||||||||||
Other Investments | 7.4 | 6.9 | |||||||||||||||||||
Total | $ | 361.8 | $ | 323.5 | |||||||||||||||||
Schedule of Expected Benefits Payments | |||||||||||||||||||||
PENSION BENEFITS EXPECTED PAYMENTS | U.S. | Non-U.S. | |||||||||||||||||||
2015 | $ | 13.3 | $ | 6.6 | |||||||||||||||||
2016 | $ | 15 | $ | 7 | |||||||||||||||||
2017 | $ | 17.4 | $ | 7.8 | |||||||||||||||||
2018 | $ | 18.5 | $ | 8.6 | |||||||||||||||||
2019 | $ | 20.8 | $ | 9.2 | |||||||||||||||||
Years 2020-2024 | $ | 129.5 | $ | 61.1 | |||||||||||||||||
Non-U.S. Pension Plans | |||||||||||||||||||||
Schedule of Assumptions Used Benefit Obligations | |||||||||||||||||||||
Non-U.S.1) | |||||||||||||||||||||
% WEIGHTED AVERAGE | 2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 1.00 - 5.00 | 1.50 - 4.50 | 1.50 - 5.50 | ||||||||||||||||||
Rate of increases in compensation level | 2.25 - 5.00 | 2.25 - 5.00 | 2.25 - 5.00 | ||||||||||||||||||
Expected long-term rate of return on assets | 2.60 - 6.15 | 3.00 - 5.75 | 3.75 - 5.75 | ||||||||||||||||||
1) | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent more than 90% of the total Non-U.S. projected benefit obligation. | ||||||||||||||||||||
Postretirement Benefits Other Than Pensions | |||||||||||||||||||||
Schedule of Changes in Benefit Obligations and Plan Assets | CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Benefit obligation at beginning of year | $ | 34.3 | $ | 34.6 | $ | 30.8 | |||||||||||||||
Service cost | 1.3 | 1.4 | 1.1 | ||||||||||||||||||
Interest cost | 1.6 | 1.4 | 1.3 | ||||||||||||||||||
Actuarial (gain) loss due to: | |||||||||||||||||||||
Change in discount rate | 2.4 | (3.7 | ) | 1.9 | |||||||||||||||||
Experience | (1.1 | ) | 1 | (3.1 | ) | ||||||||||||||||
Other assumption changes | 0.4 | (1.0 | ) | 3.2 | |||||||||||||||||
Plan amendments | (17.2 | ) | — | — | |||||||||||||||||
Benefits paid | (0.8 | ) | (0.3 | ) | (0.5 | ) | |||||||||||||||
Other | 0.1 | 0.9 | -0.1 | ||||||||||||||||||
Benefit obligation at end of year | $ | 21 | $ | 34.3 | $ | 34.6 | |||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | $ | — | |||||||||||||||
Company contributions | 0.8 | 0.3 | 0.5 | ||||||||||||||||||
Benefits paid | -0.8 | -0.3 | -0.5 | ||||||||||||||||||
Fair value of plan assets at end of year | $— | $— | $— | ||||||||||||||||||
Accrued postretirement benefit cost recognized in the balance sheet | $ | (21.0 | ) | $ | (34.3 | ) | $ | (34.6 | ) | ||||||||||||
Schedule of Components of Net Periodic Benefit Cost | COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE POST-RETIREMENT BENEFIT PLANS OTHER THAN PENSIONS | ||||||||||||||||||||
PERIOD ENDED DECEMBER 31 | 2014 | 2013 | 2012 | ||||||||||||||||||
Service cost | $ | 1.3 | $ | 1.4 | $ | 1.1 | |||||||||||||||
Interest cost | 1.6 | 1.4 | 1.3 | ||||||||||||||||||
Amortization of prior service cost | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||
Amortization of actuarial loss | -0.1 | -0.1 | -0.2 | ||||||||||||||||||
Net periodic benefit cost | $ | 2.7 | $ | 2.6 | $ | 2.1 | |||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income Before Tax | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX ASSOCIATED WITH POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 | ||||||||||||||||||||
U.S. | Non-U.S. | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net actuarial loss (gain) | $ | (0.7 | ) | $ | (2.4 | ) | $ | (1.7 | ) | $ | (1.8 | ) | |||||||||
Prior service cost (credit) | (17.3 | ) | (0.2 | ) | (0.0 | ) | (0.0 | ) | |||||||||||||
Total accumulated other comprehensive income recognized in the balance sheet | $ | (18.0 | ) | $ | (2.6 | ) | $ | (1.7 | ) | $ | (1.8 | ) | |||||||||
Schedule of Expected Benefits Payments | The estimated future benefit payments for the postretirement benefits reflect expected future service as appropriate. | ||||||||||||||||||||
POSTRETIREMENT BENEFITS | EXPECTED | ||||||||||||||||||||
PAYMENTS | |||||||||||||||||||||
2015 | $ | 0.6 | |||||||||||||||||||
2016 | $ | 0.7 | |||||||||||||||||||
2017 | $ | 0.7 | |||||||||||||||||||
2018 | $ | 0.8 | |||||||||||||||||||
2019 | $ | 0.9 | |||||||||||||||||||
Years 2020 - 2024 | $ | 5.3 | |||||||||||||||||||
U.S. Pension Plans | |||||||||||||||||||||
Schedule of Assumptions Used Benefit Obligations | ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31 | ||||||||||||||||||||
U.S. | |||||||||||||||||||||
% WEIGHTED AVERAGE | 2014 | 2013 | 2012 | ||||||||||||||||||
Discount rate | 5 | 4.05 | 4.6 | ||||||||||||||||||
Rate of increases in compensation level | 3.5 | 3.5 | 3.5 | ||||||||||||||||||
Expected long-term rate of return on assets | 7.08 | 7.5 | 7.5 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Net Sales Attributed to Geographic Areas | |||||||||||||
NET SALES | 2014 | 2013 | 2012 | ||||||||||
Asia | $ | 3,097.90 | $ | 2,974.10 | $ | 2,752.20 | |||||||
Whereof: China | 1,521.60 | 1,405.50 | 1,097.60 | ||||||||||
Japan | 687.7 | 688.2 | 830.5 | ||||||||||
Rest of Asia | 888.6 | 880.4 | 824.1 | ||||||||||
Americas | 3,099.40 | 2,943.60 | 2,839.10 | ||||||||||
Europe | 3,043.20 | 2,885.70 | 2,675.40 | ||||||||||
Total | $ | 9,240.50 | $ | 8,803.40 | $ | 8,266.70 | |||||||
Schedule of Sales By Product | |||||||||||||
SALES BY PRODUCT | 2014 | 2013 | 2012 | ||||||||||
Airbags and associated products1) | $ | 5,951.30 | $ | 5,686.00 | $ | 5,392.00 | |||||||
Seatbelts and associated products | 2,800.10 | 2,772.70 | 2,656.50 | ||||||||||
Active Safety products | 489.1 | 344.7 | 218.2 | ||||||||||
Total | $ | 9,240.50 | $ | 8,803.40 | $ | 8,266.70 | |||||||
1) Includes sales of steering wheels, passive safety electronics and inflators. | |||||||||||||
Schedule of Long-Lived Assets | |||||||||||||
LONG-LIVED ASSETS | 2014 | 2013 | |||||||||||
Asia | $ | 696 | $ | 612 | |||||||||
Whereof: China | 391 | 277 | |||||||||||
Japan | 98 | 106 | |||||||||||
Rest of Asia | 207 | 229 | |||||||||||
Americas | 1,906 | 1,927 | |||||||||||
Europe | 705 | 744 | |||||||||||
Total | $ | 3,307 | $ | 3,283 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Weighted Average Shares Used in Earnings Per Share Calculation | The weighted average shares used in calculating earnings per share were: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average shares basic | 92.1 | 95.5 | 93.5 | ||||||||||
Effect of dilutive securities: | |||||||||||||
stock options/share awards | 0.3 | 0.4 | 0.3 | ||||||||||
equity units | — | — | 1.3 | ||||||||||
Weighted average shares diluted | 92.4 | 95.9 | 95.1 |
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Unaudited Quarterly Financial Data | |||||||||||||||||
2014 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
Net sales | $ | 2,295.80 | $ | 2,383.00 | $ | 2,208.00 | $ | 2,353.70 | |||||||||
Gross profit | 445.3 | 464.2 | 426.4 | 467.9 | |||||||||||||
Income before taxes | 184.3 | 122.9 | 156.5 | 203.3 | |||||||||||||
Net income | 131.1 | 83.2 | 106.7 | 148 | |||||||||||||
Net income attributable to controlling interest | 130.3 | 82.8 | 106.5 | 148.2 | |||||||||||||
Earnings per share | |||||||||||||||||
– basic | $ | 1.39 | $ | 0.89 | $ | 1.16 | $ | 1.65 | |||||||||
– diluted | $ | 1.38 | $ | 0.89 | $ | 1.16 | $ | 1.65 | |||||||||
Dividends paid | $ | 0.52 | $ | 0.52 | $ | 0.54 | $ | 0.54 | |||||||||
2013 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
Net sales | $ | 2,135.00 | $ | 2,197.50 | $ | 2,119.00 | $ | 2,351.90 | |||||||||
Gross profit | 414.3 | 430.5 | 404.9 | 454.9 | |||||||||||||
Income before taxes | 170.1 | 192.7 | 176.6 | 194.6 | |||||||||||||
Net income | 125.1 | 139.4 | 124.9 | 100.5 | |||||||||||||
Net income attributable to controlling interest | 123.5 | 138.7 | 123.9 | 99.7 | |||||||||||||
Earnings per share | |||||||||||||||||
– basic | $ | 1.29 | $ | 1.45 | $ | 1.29 | $ | 1.05 | |||||||||
– diluted | $ | 1.29 | $ | 1.44 | $ | 1.29 | $ | 1.04 | |||||||||
Dividends paid | $ | 0.5 | $ | 0.5 | $ | 0.5 | $ | 0.5 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
Significant Accounting Policies [Line Items] | |||
Swaps maturity date | no swaps have a maturity beyond 2015. | ||
Goodwill | $1,594,000,000 | $1,610,100,000 | $1,610,800,000 |
Number of reporting units tested for goodwill impairment | 2 | ||
Impairments of goodwill | 0 | 0 | 0 |
Net transaction gains (losses) | -3,800,000 | -26,300,000 | -5,600,000 |
Morton International, Inc | |||
Significant Accounting Policies [Line Items] | |||
Goodwill | 1,200,000,000 | ||
Passive Safety Systems | |||
Significant Accounting Policies [Line Items] | |||
Goodwill | $1,600,000,000 | $1,600,000,000 | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of voting right | 50.00% | ||
Percentage of investments in affiliated companies | 20.00% | ||
Other intangible assets, useful lives | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of investments in affiliated companies | 50.00% | ||
Other intangible assets, useful lives | 25 years |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Nominal volume | $459.10 | $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 | 0.4 | 2.8 | ||
Less Than Six Months | Foreign Exchange Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Nominal volume | 459.1 | [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 | $0.40 | [5] | $2.80 | [6] |
[1] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 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 $1.3 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 $0.4 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 $) | Dec. 31, 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 | $390.90 | $425.40 |
Derivative asset, amount after offsetting swaps | 1.3 | 1.5 |
Derivative liability, amount after offsetting swaps | $0.40 | $2.60 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2011 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restructuring reserves | $79,800,000 | $94,200,000 | $75,800,000 | $32,300,000 | |
Asset impairment charges | 0 | 0 | 0 | ||
Derivatives Designated as Hedging Instruments | |||||
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 | 60,000,000 | ||||
Interest expense | 1,300,000 | ||||
Debt instrument maturity year | 2019 | ||||
Fair value decrease | -1,300,000 | ||||
Not Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain in other Financial Items, net | 2,000,000 | -1,100,000 | |||
Fair Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restructuring reserves | $79,800,000 |
Fair_Value_of_Debt_Detail
Fair Value of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | $1,521.20 | [1] | $279.10 | [1] |
Long-term debt, fair value | 1,610.30 | 289.8 | ||
Short-term debt | 79.6 | [1] | 339.4 | [1] |
Short-term debt, fair value | 79.6 | 345.8 | ||
U.S. Private Placement - Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | 1,424.20 | [1] | 177.6 | [1] |
Long-term debt, fair value | 1,510.20 | 187.7 | ||
Medium-term Notes | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | 83.2 | [1] | 99.9 | [1] |
Long-term debt, fair value | 86.3 | 100.5 | ||
Other Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | 13.8 | [1] | 1.6 | [1] |
Long-term debt, fair value | 13.8 | 1.6 | ||
Overdrafts and Other Short-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Short-term debt | 57.8 | [1] | 65.6 | [1] |
Short-term debt, fair value | 57.8 | 65.6 | ||
Short-Term Portion of Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Short-term debt | 21.8 | [1] | 167.2 | [1] |
Short-term debt, fair value | 21.8 | 172.6 | ||
Notes Short-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Short-term debt | 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_Before_Income_Taxes_Det
Income Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Income Before Income Tax [Line Items] | |||||||||||
U.S. | $59.50 | $169.40 | $171.20 | ||||||||
Non-U.S. | 607.5 | 564.6 | 497.4 | ||||||||
Income before income taxes | $203.30 | $156.50 | $122.90 | $184.30 | $194.60 | $176.60 | $192.70 | $170.10 | $667 | $734 | $668.60 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current U.S. federal | $32.20 | $42.70 | $62.80 |
Current Non-U.S. | 166.2 | 164.7 | 146.2 |
Current U.S. state and local | 0.4 | 1.6 | 5.8 |
Deferred U.S. federal | -3.2 | 11.7 | 0.2 |
Deferred Non-U.S. | 2.9 | 22.2 | -29.6 |
Deferred U.S. state and local | -0.5 | 1.2 | -2.4 |
Total income tax expense (benefit) | $198 | $244.10 | $183 |
Effective_Income_Tax_Rate_Deta
Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Effective Income Tax Rate [Line Items] | |||
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Foreign tax rate variances | -8.50% | -8.20% | -7.60% |
Tax credits | -4.90% | -4.50% | -3.20% |
Change in Valuation Allowances | 0.60% | 5.30% | -1.10% |
Current year losses with no benefit | 5.90% | 4.00% | 3.20% |
Net operating loss carry-forwards | 0.00% | -0.10% | -0.20% |
Changes in tax reserves | -0.10% | 1.10% | 0.00% |
Cost of double taxation | 2.10% | 0.60% | 0.90% |
Earnings of equity investments | -0.40% | -0.40% | -0.40% |
Withholding taxes | 0.60% | 1.00% | 1.60% |
State taxes, net of federal benefit | 0.00% | 0.20% | 0.30% |
Statutory Investment Allowances | 0.00% | 0.00% | -2.30% |
Antitrust Settlement | 0.00% | 0.00% | 0.90% |
Other, net | -0.60% | -0.80% | 0.30% |
Effective income tax rate | 29.70% | 33.20% | 27.40% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ||||
Net operating loss carry-forwards | $319,000,000 | |||
Net operating loss carry-forwards with have no expiration date | 248,000,000 | |||
Net Operating loss carry-forwards, expiration date | 2029 | |||
Tax credit carry-forwards | 37,000,000 | |||
Tax credit carry-forwards, expiration date | 2021 | |||
Investment tax credit carry-forwards | 2,300,000 | |||
Investment tax credit carry-forwards, expiration date | 2021 | |||
Valuation allowances | 150,100,000 | 115,500,000 | 44,800,000 | 41,700,000 |
Income tax holidays, tax savings | 12,000,000 | |||
Income tax holidays income tax benefit per share | $0.13 | |||
Effective income tax rate | 29.70% | 33.20% | 27.40% | |
Unrecognized tax benefits related to prior years | 23,300,000 | |||
Unrecognized accrued interest and penalties | 1,600,000 | 2,100,000 | ||
Net decrease to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years | 1,900,000 | |||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 21,400,000 | |||
Unrecognized tax benefits payable, current | 2,800,000 | |||
Unrecognized tax benefits payable, non-current | 18,600,000 | |||
Undistributed earnings of non-U.S. operations | 4,000,000,000 | |||
Valuation allowance related to the inefficiencies in Europe and capacity alignment due to depressed volumes in the region | ||||
Income Taxes [Line Items] | ||||
Valuation allowances | $39,000,000 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 25.00% | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 30.00% |
Tax_Benefits_Unrecognized_Deta
Tax Benefits Unrecognized (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Unrecognized tax benefits at beginning of year | $22.70 | $14.70 | $14 |
Increases as a result of tax positions taken during a prior period | 0.6 | 7.2 | 1.3 |
Decreases as a result of tax positions taken during a prior period | 0 | -0.3 | -0.3 |
Increases as a result of tax positions taken during the current period | 3.1 | 2.9 | 0.6 |
Decreases as a result of tax positions taken during the current period | 0 | 0 | 0 |
Decreases relating to settlements with taxing authorities | -2.4 | -0.8 | -0.3 |
Decreases resulting from the lapse of the applicable statute of limitations | -1.2 | -0.6 | -1.3 |
Translation Difference | -1.3 | -0.4 | 0.7 |
Total unrecognized tax benefits at end of year | $21.50 | $22.70 | $14.70 |
Deferred_Taxes_Detail
Deferred Taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ||||
Provisions | $90.60 | $97.20 | $105.90 | |
Costs capitalized for tax | 12 | 18.5 | 11.5 | |
Property, plant and equipment | 18.9 | 20.9 | 26.1 | |
Retirement Plans | 73.6 | 49.9 | 99.7 | |
Tax receivables, principally NOL's | 166.2 | 136.6 | 104.9 | |
Deferred tax assets before allowances | 361.3 | 323.1 | 348.1 | |
Valuation allowances | -150.1 | -115.5 | -44.8 | -41.7 |
Total | 211.2 | 207.6 | 303.3 | |
Acquired intangibles | -22 | -25.3 | -29.2 | |
Statutory tax allowances | -0.7 | -1.3 | -1.5 | |
Insurance deposit | -5 | -6.4 | -7.5 | |
Distribution taxes | -34 | -38.1 | -43 | |
Other | -2.6 | -3 | -2.5 | |
Total | -64.3 | -74.1 | -83.7 | |
Net deferred tax asset | $146.90 | $133.50 | $219.60 |
Valuation_Allowance_Against_De
Valuation Allowance Against Deferred Tax Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance [Line Items] | |||
Allowances at beginning of year | $115.50 | $44.80 | $41.70 |
Benefits reserved current year | 55.2 | 76.1 | 15.7 |
Benefits recognized current year | -0.7 | -1.8 | -11.7 |
Write-offs and other changes | -3 | 0 | 0 |
Translation difference | -16.9 | -3.6 | -0.9 |
Allowances at end of year | $150.10 | $115.50 | $44.80 |
Receivables_Detail
Receivables (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivables [Line Items] | |||
Receivables | $1,713.20 | $1,692.60 | $1,516.60 |
Allowance at beginning of year | -4.6 | -7.3 | -8.3 |
Reversal of allowance | 0.9 | 4.1 | 2.1 |
Addition to allowance | -4.1 | -2.2 | -2.1 |
Write-off against allowance | 0.6 | 0.9 | 1.2 |
Translation difference | 0.3 | -0.1 | -0.2 |
Allowance at end of year | -6.9 | -4.6 | -7.3 |
Total receivables, net of allowance | $1,706.30 | $1,688 | $1,509.30 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory [Line Items] | |||
Raw material | $312.20 | $314.80 | $287.70 |
Work in progress | 240.6 | 232.9 | 225.9 |
Finished products | 206 | 201.9 | 180.9 |
Inventories | 758.8 | 749.6 | 694.5 |
Inventory reserve at beginning of year | -87.8 | -83.5 | -76.1 |
Reversal of reserve | 5.1 | 5.1 | 5.3 |
Addition to reserve | -10.9 | -20.8 | -22.9 |
Write-off against reserve | 4 | 10.5 | 10.4 |
Translation difference | 6.3 | 0.9 | -0.2 |
Inventory reserve at end of year | -83.3 | -87.8 | -83.5 |
Total inventories, net of reserve | $675.50 | $661.80 | $611 |
Recovered_Sheet1
Investments and Other Non-Current Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments and Other Non-current Assets | ||
Equity method investments | $26.80 | $26.60 |
Deferred tax assets | 139 | 122.4 |
Income tax receivables | 54.7 | 54.7 |
Long-term interest bearing deposit (insurance arrangement) | 20.2 | |
Other non-current assets | 34.8 | 35.1 |
Investments and other non-current assets | $255.30 | $259 |
Percentage_of_Ownership_in_Equ
Percentage of Ownership in Equity Method Investment (Detail) | Dec. 31, 2014 |
France | EAK SNC Composants Pour L'Industrie Automobile | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership | 49.00% |
Malaysia | Autoliv-Hirotako Safety Sdn Bhd (Parent And Subsidiaries) | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership | 49.00% |
China | Changchun Hongguang-Autoliv Vehicle Safety Systems Co. Ltd. | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership | 30.00% |
Recovered_Sheet2
Investments and Other Non-Current Assets - Additional Information (Detail) (France, EAK SA Composants Pour L'Industrie Automobile) | Dec. 31, 2014 |
France | EAK SA Composants Pour L'Industrie Automobile | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership, liquidated | 49.00% |
Schedule_of_Property_Plant_and
Schedule of Property, Plant and Equipment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Land and land improvements | 106 | $114.80 |
Machinery and equipment | 3,160 | 3,199.20 |
Buildings | 813.2 | 801.1 |
Construction in progress | 263.2 | 253.2 |
Property, plant and equipment | 4,342.40 | 4,368.30 |
Less accumulated depreciation | -2,952.20 | -3,032.10 |
Net of depreciation | 1,390.20 | $1,336.20 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Machinery and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Machinery and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years |
Depreciation_Included_in_Prope
Depreciation Included in Property Plant and Equipment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $289.40 | $265.60 | $253 |
Cost of Sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 258.7 | 237.2 | 225.4 |
Selling, General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 8 | 8.2 | 8.2 |
Research, Development and Engineering Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $22.70 | $20.20 | $19.40 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $0 | $0 | $0 |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Net book value of capital lease assets | 300,000 | 700,000 | |
Land and Building | |||
Property, Plant and Equipment [Line Items] | |||
Net book value of capital lease assets | $1,100,000 | $1,500,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Goodwill, Carrying amount at beginning of year | $1,610.10 | $1,610.80 |
Goodwill, Acquisitions and purchase price adjustments | 0 | 0 |
Goodwill, Translation differences | -16.1 | -0.7 |
Goodwill, Carrying amount at end of year | 1,594 | 1,610.10 |
Amortized Intangible, Gross carrying amount | 394.6 | 398.9 |
Amortized Intangible, Accumulated amortization | -327.4 | -321.6 |
Amortized Intangible, Carrying value | $67.20 | $77.30 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill And Intangible Assets [Line Items] | |||
Impairments of goodwill | $0 | $0 | $0 |
Goodwill | 1,594,000,000 | 1,610,100,000 | 1,610,800,000 |
Amortization expense on intangible assets | 16,000,000 | 20,400,000 | 20,200,000 |
2015 | 13,200,000 | ||
2016 | 11,500,000 | ||
2017 | 11,300,000 | ||
2018 | 11,300,000 | ||
2019 | 11,200,000 | ||
Morton International, Inc | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | $1,200,000,000 |
Schedule_of_Changes_in_Balance
Schedule of Changes in Balance Sheet Position of Restructuring Reserves (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | $94.20 | $75.80 | $32.30 |
Provision/ Charge | 42.8 | 40.4 | 76.9 |
Provision/ Reversal | -2.3 | -4.9 | -2.1 |
Cash payments | -44.5 | -20.4 | -33.3 |
Translation difference | -10.4 | 3.3 | 2 |
Restructuring reserve, ending balance | 79.8 | 94.2 | 75.8 |
Restructuring employee-related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 93.9 | 74.9 | 31.4 |
Provision/ Charge | 42.6 | 40.4 | 76.6 |
Provision/ Reversal | -2.3 | -4.7 | -1.8 |
Cash payments | -44.2 | -20 | -33.3 |
Translation difference | -10.4 | 3.3 | 2 |
Restructuring reserve, ending balance | 79.6 | 93.9 | 74.9 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0.3 | 0.9 | 0.9 |
Provision/ Charge | 0.2 | 0.3 | |
Provision/ Reversal | 0 | -0.2 | -0.3 |
Cash payments | -0.3 | -0.4 | 0 |
Translation difference | 0 | ||
Restructuring reserve, ending balance | $0.20 | $0.30 | $0.90 |
Summary_of_Change_in_Balance_S
Summary of Change in Balance Sheet Position of Product-Related Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Liability Contingency [Line Items] | |||
Reserve at beginning of the year | $36.40 | $29.90 | $33 |
Change in reserve | 37.9 | 21.3 | 19.3 |
Cash payments | -20.9 | -15.2 | -22.7 |
Translation difference | -2.1 | 0.4 | 0.3 |
Reserve at end of the year | $51.30 | $36.40 | $29.90 |
Debt_and_Credit_Agreements_Add
Debt and Credit Agreements - Additional Information (Detail) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Share data in Millions, unless otherwise specified | Apr. 30, 2012 | Mar. 30, 2009 | Apr. 30, 2011 | Dec. 31, 2014 | Apr. 25, 2014 | Dec. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2012 | Mar. 15, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2009 | Jun. 30, 2009 | Dec. 31, 2012 | Jan. 31, 2015 | Apr. 30, 2011 | Apr. 30, 2011 | Apr. 30, 2011 | Nov. 30, 2014 | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Jul. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Autoliv ASP Inc. | Autoliv do Brazil Ltda | OOO Autoliv | Autoliv KK | Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi ve Ticavet A.S. | Banks Rated A- or Above | Banks Rated BBB+ | Swedish Program | Swedish Program | United States Program | European Investment Bank | European Investment Bank | European Investment Bank | European Investment Bank | European Investment Bank | European Investment Bank | Syndicated By Banks | First Anniversary of April 2011 Loan Facility | Second Anniversary of April 2011 Loan Facility | U.S. Private Placement Notes | Senior Notes | Senior Notes | Brazilian Development Bank | Russia | Japanese Banks | Senior Notes Five Year | Senior Notes Five Year | Senior Notes Seven Year | Senior Notes Seven Year | Senior Notes Ten Year | Senior Notes Ten Year | Senior Notes Twelve Year | Senior Notes Twelve Year | Senior Notes Fifteen Year | Senior Notes Fifteen Year | Total Debt As Cash Flow Including Debt Related Derivatives | Fixed Rate Notes | Fixed Rate Notes | Floating Interest Rate of STIBOR + 3.9% | Floating Interest Rate of STIBOR + 3.9% | Floating Interest Rate of STIBOR + 0.95% | Turkish Banks | Brazil Banks | Interest Rate Swaps | Maximum | Maximum | Maximum | Maximum | Minimum | Minimum | ||||
Tranche | USD ($) | USD ($) | USD ($) | SEK | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | EUR (€) | Subsequent Event | Bank | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | SEK | USD ($) | SEK | USD ($) | USD ($) | USD ($) | European Investment Bank | Commercial Paper | Interest Rate Swaps | Interest Rate Swaps | |||||||||||||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Credit Agreements [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total short-term debt including DRD | $79,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term portion of long-term debt | 22,000,000 | 18,000,000 | 2,000,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying value | 106,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | 30-Apr-14 | 30-Apr-14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued in exchange of U.S treasury securities, shares | 5.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued in exchange of U.S treasury securities, value | 106,273,000 | 235,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and loans having fixed interest rates | 165,000,000 | 125,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate on notes and loans | 5.80% | 2.49% | 2.49% | 6.20% | 5.40% | 6.10% | 2.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate on short-term debt | 4.10% | 3.50% | 13.00% | 25.00% | 1.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of ownership | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt excluding commercial paper | 307,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt excluding commercial paper, utilized amount | 57,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unused short-term lines of credit | 250,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term debt issued | 1,250,000,000 | 208,000,000 | 275,000,000 | 297,000,000 | 285,000,000 | 185,000,000 | 45,000,000 | 350,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 3.85% | 2.84% | 3.51% | 4.09% | 4.24% | 4.44% | 4.30% | 13.90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term debt issued, average interest rate | 3.84% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term debt maturity period | 5 years | 7 years | 10 years | 12 years | 15 years | 5 years | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt including DRD | 1,521,200,000 | [1] | 279,100,000 | [1] | 1,512,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 262,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes | 165,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of tranches of notes | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nominal value | 60,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes repurchased | 38,000,000 | 300,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Floating interest rates on notes | 0.95% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument maturity | 2017-12 | 2017-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility commitment fee percent | 0.26% | 0.26% | 0.30% | 0.16% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term debt | 14,000,000 | 9,000,000 | 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility amount | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | 244,000,000 | 200,000,000 | 274,000,000 | 225,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of banks syndicated on revolving credit facility | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility maturity period | 2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing costs | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit extension fees | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Irrevocable loan commitment, in months | 18 months | 18 months | 18 months | 18 months | 12 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expiration of loan commitment remaining amount | 225,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility maturity period | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility non utilization fee percent | 0.13% | 0.13% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unutilized long-term debt facilities | 1,300,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | 896,000,000 | 7,000,000,000 | 1,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculated risk amount | 150,000,000 | 50,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | 429,000,000 | 2,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government paper | $550,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Debt as reported in balance sheet. |
Debt_Profile_Detail
Debt Profile (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Total long-term | $1,521.20 | [1] | $279.10 | [1] |
Total | 262 | |||
Total Debt As Reported | ||||
Debt Instrument [Line Items] | ||||
2015 | 79.6 | |||
2016 | 13.9 | |||
2017 | 189.1 | |||
2019 | 276.2 | |||
Thereafter | 1,042 | |||
Total long-term | 1,521.20 | |||
Total | 1,600.80 | |||
U.S. Private Placement Notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 3.90% | [2] | ||
2017 | 105 | [2] | ||
2019 | 268 | [2] | ||
Thereafter | 1,042 | [2] | ||
Total long-term | 1,415 | [2] | ||
Total | 1,415 | [2] | ||
Overdraft/Other Short-term Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 4.10% | [2] | ||
2015 | 56.9 | [2] | ||
Total | 56.9 | [2] | ||
Medium-term Notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.90% | |||
2017 | 83.2 | |||
Total long-term | 83.2 | |||
Total | 83.2 | |||
Other Long-term Loans, Including Current Portion | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 11.10% | [3] | ||
2015 | 21.8 | [3] | ||
2016 | 13.9 | [3] | ||
Total long-term | 13.9 | [3] | ||
Total | 35.7 | [3] | ||
Total Debt As Cash Flow Including Debt Related Derivatives | ||||
Debt Instrument [Line Items] | ||||
2015 | 78.7 | [2] | ||
2016 | 13.9 | [2] | ||
2017 | 188.2 | [2] | ||
2019 | 268 | [2] | ||
Thereafter | 1,042 | [2] | ||
Total long-term | 1,512.10 | [2] | ||
Total | 1,590.80 | [2] | ||
Debt Related Derivatives Adjustment | ||||
Debt Instrument [Line Items] | ||||
2015 | 0.9 | |||
2017 | 0.9 | |||
2019 | 8.2 | |||
Total long-term | 9.1 | |||
Total | $10 | |||
[1] | Debt as reported in balance sheet. | |||
[2] | Debt Related Derivatives (DRD), i.e. the fair value adjustments associated with hedging instruments as adjustments to the carrying value of the underlying debt. Included in the DRD is also the unamortized fair value adjustment related to discontinued fair value hedges which will be amortized over the remaining life of the debt. | |||
[3] | Primarily external loans drawn locally in Brazil, Turkey and Russia. |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2012 | Mar. 30, 2009 | Jun. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2009 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Jan. 31, 2014 | Mar. 15, 2012 | Dec. 31, 2007 | Dec. 31, 2000 | |
Shareholders' Equity [Line Items] | |||||||||||||
Number of shares outstanding | 88,726,543 | ||||||||||||
Common shares sold from treasury stock | 14,700,000 | 4,500,000 | |||||||||||
Equity units number issued, units | 6,600,000 | ||||||||||||
Common shares sold aggregate stated amount | $106,273,000 | $235,000,000 | |||||||||||
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 | 0 | ||||||||||||
Interest rate | 3.85% | ||||||||||||
Purchase contract settlement date | 4/30/12 | ||||||||||||
Allocation of underwriting commissions as deferred charges | 1.00% | ||||||||||||
Underwriting commissions paid, total | 6.00% | ||||||||||||
Debt maturity date | 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 | ||||||||||||
Maximum number of shares that may yet be purchased | 5,349,926 | ||||||||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 10,000,000 | 37,500,000 | 10,000,000 | ||||||||||
Aggregate number of shares repurchased | 42,200,000 | ||||||||||||
Aggregate value of shares repurchased | 2,237,000,000 | ||||||||||||
Repurchased shares remain in treasury stock | 14,100,000 | 8,400,000 | |||||||||||
Equity Offering | |||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||
Common shares sold from treasury stock | 14,700,000 | ||||||||||||
Repurchase Of Equity Units | |||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||
Common shares sold from treasury stock | 3,100,000 | 5,800,000 | |||||||||||
Stock Incentive Plan | |||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||
Common shares sold from treasury stock | 500,000 | 500,000 | 400,000 | ||||||||||
Undivided Interest | |||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||
Senior notes principal amount | $1,000 | ||||||||||||
Interest rate | 8.00% | ||||||||||||
Debt instrument maturity year | 2014 |
Schedule_of_Dividends_Paid_Det
Schedule of Dividends Paid (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends [Line Items] | |||||||||||
Cash dividend paid per share | $0.54 | $0.54 | $0.52 | $0.52 | $0.50 | $0.50 | $0.50 | $0.50 | $2.12 | $2 | $1.89 |
Cash dividend declared per share | $2.14 | $2.02 | $1.94 |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative translation adjustments | ($155.10) | [1] | $49.40 | [1] | $67.20 | [1] |
Net pension liability | -97.9 | [1] | -48.9 | [1] | -107.7 | [1] |
Total (ending balance) | -253 | [1] | 0.5 | [1] | -40.5 | [1] |
Deferred taxes on the pension liability | $43.40 | [1] | $21.40 | [1] | $59.70 | [1] |
[1] | The components of Other Comprehensive Income (Loss) are net of any related income tax effects. |
Share_Repurchase_Program_Detai
Share Repurchase Program (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share Repurchases [Line Items] | ||
Shares repurchased | 6.2 | 1.6 |
Cash paid for shares | $616 | $147.90 |
Schedule_of_Acquisitions_and_D
Schedule of Acquisitions and Divestitures of Businesses, Net of Cash Acquired (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Cash Flow, Supplemental [Line Items] | |||
Cash paid for prior year acquisitions | ($1.40) | ($2) | ($1.80) |
Acquisition of businesses, net of cash acquired | -1.4 | -2 | -1.8 |
Divestitures of business, net of cash disposed | $2.40 | $5.20 |
Schedule_of_Payments_for_Inter
Schedule of Payments for Interest and Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Information [Line Items] | |||
Interest | $57 | $33 | $40 |
Income taxes | $206 | $206 | $237 |
Stock_Incentive_Plan_Additiona
Stock Incentive Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted for term, years | 10 years | ||
Date shares become exercisable | 1 year | ||
Shares transferred to employee term, years | 3 years | ||
Weighted average grant date fair value of stock options granted | $17.35 | $15.61 | $18.01 |
Total stock compensation cost | $8.10 | $8.30 | $7.70 |
Total compensation cost related to non-vested awards | 5.9 | ||
Weighted average period over which cost is expected to be recognized | 2 years | ||
Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum common shares that may be issued for awards | 9,585,055 | ||
Number of common shares that have been issued for awards | 5,945,064 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | 4.4 | 4.3 | 3.3 |
Aggregate intrinsic value | 21 | ||
Weighted average grant date fair value of restricted stock unit granted | $88.54 | $64.59 | $61.58 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value | 19.2 | ||
Closing price per share | $106.12 | ||
Aggregate intrinsic value for stock options exercisable | $17.10 |
Assumption_Used_in_Optionprici
Assumption Used in Option-pricing Valuation Model (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.10% | 0.90% | 0.90% |
Dividend yield | 2.30% | 2.30% | 2.80% |
Expected life in years | 3 years 10 months 24 days | 4 years 1 month 6 days | 4 years 1 month 6 days |
Expected volatility | 28.00% | 34.00% | 42.00% |
Schedule_of_Number_of_Restrict
Schedule of Number of Restricted Stock Units (Detail) (Restricted Stock Units (RSUs)) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year | 204,277 | 211,618 | 320,122 |
Granted | 64,223 | 91,230 | 72,900 |
Shares issued | -56,184 | -84,342 | -172,212 |
Cancelled/Forfeited/Expired | -14,031 | -14,229 | -9,192 |
Outstanding at end of year | 198,285 | 204,277 | 211,618 |
Schedule_of_Number_of_Stock_Op
Schedule of Number of Stock Options (Detail) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options, Outstanding beginning balance | 831,701 | 1,012,230 | 1,073,002 |
Granted | 192,665 | 273,541 | 218,695 |
Exercised | -471,732 | -437,751 | -254,440 |
Cancelled/Forfeited/Expired | -13,809 | -16,319 | -25,027 |
Number of options, Outstanding ending balance | 538,825 | 831,701 | 1,012,230 |
Weighted average exercise price, Outstanding beginning balance | $59.20 | $53.91 | $46.26 |
Granted | $94.87 | $69.18 | $67 |
Exercised | $60.78 | $53.58 | $33.26 |
Cancelled/Forfeited/Expired | $66.23 | $49.25 | $50.59 |
Weighted average exercise price, Outstanding ending balance | $70.38 | $59.20 | $53.91 |
Schedule_of_Options_Exercisabl
Schedule of Options Exercisable (Detail) (Options Exercisable, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Options Exercisable | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercisable, shares | 349,190 | 559,483 | 796,720 |
Weighted average exercise price | $57.08 | $54.34 | $50.37 |
Summary_of_Stock_Options_Outst
Summary of Stock Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number outstanding | 538,825 |
Remaining contract life in years, Outstanding options | 6 years 10 months 28 days |
Number outstanding, Weighted average exercise price | $70.38 |
Number exercisable | 349,190 |
Remaining contract life in years, Exercisable options | 5 years 8 months 12 days |
Number exercisable, Weighted average exercise price | $57.08 |
$16.31-$19.96 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range, lower range Limit | $16.31 |
Shares authorized under stock option plans, exercise price range, upper range limit | $19.96 |
Number outstanding | 41,950 |
Remaining contract life in years, Outstanding options | 4 years 1 month 6 days |
Number outstanding, Weighted average exercise price | $16.31 |
Number exercisable | 41,950 |
Remaining contract life in years, Exercisable options | 4 years 1 month 6 days |
Number exercisable, Weighted average exercise price | $16.31 |
$40.26-$49.60 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range, lower range Limit | $40.26 |
Shares authorized under stock option plans, exercise price range, upper range limit | $49.60 |
Number outstanding | 63,182 |
Remaining contract life in years, Outstanding options | 3 years 7 months 24 days |
Number outstanding, Weighted average exercise price | $46.14 |
Number exercisable | 63,182 |
Remaining contract life in years, Exercisable options | 3 years 7 months 24 days |
Number exercisable, Weighted average exercise price | $46.14 |
$51.67 - $59.01 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range, lower range Limit | $51.67 |
Shares authorized under stock option plans, exercise price range, upper range limit | $59.01 |
Number outstanding | 45,150 |
Remaining contract life in years, Outstanding options | 2 years 7 months 21 days |
Number outstanding, Weighted average exercise price | $55.27 |
Number exercisable | 45,150 |
Remaining contract life in years, Exercisable options | 2 years 7 months 21 days |
Number exercisable, Weighted average exercise price | $55.27 |
$67.00 - $69.18 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range, lower range Limit | $67 |
Shares authorized under stock option plans, exercise price range, upper range limit | $69.18 |
Number outstanding | 148,326 |
Remaining contract life in years, Outstanding options | 7 years 9 months 15 days |
Number outstanding, Weighted average exercise price | $68.41 |
Number exercisable | 148,326 |
Remaining contract life in years, Exercisable options | 7 years 9 months 15 days |
Number exercisable, Weighted average exercise price | $68.41 |
$72.95 - $94.87 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range, lower range Limit | $72.95 |
Shares authorized under stock option plans, exercise price range, upper range limit | $94.87 |
Number outstanding | 240,217 |
Remaining contract life in years, Outstanding options | 8 years 6 months 4 days |
Number outstanding, Weighted average exercise price | $90.25 |
Number exercisable | 50,582 |
Remaining contract life in years, Exercisable options | 6 years 1 month 21 days |
Number exercisable, Weighted average exercise price | $72.95 |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 06, 2012 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | Aug. 31, 2014 | Jun. 30, 2014 |
USD ($) | Employee | 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 | Brazilian Subsidiaries | Brazilian Subsidiaries | Ontario and Quebec Superior Court | Construction Laborers Pension Trust of Greater St. Louis (CLPT) | Construction Laborers Pension Trust of Greater St. Louis (CLPT) | |
Defendant | USD ($) | Defendant | Direct purchaser settlement class | Direct purchaser settlement class | Auto dealer settlement class | End-payor settlement class | USD ($) | BRL | Defendant | USD ($) | USD ($) | ||
Defendant | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||
Loss Contingencies [Line Items] | |||||||||||||
Aggregate assessment for all alleged violations | $20.40 | 55 | |||||||||||
Cash paid for litigation settlements | 14.5 | 22.5 | |||||||||||
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 | 40 | 6 | 19 | 4.5 | ||||||||
Settlement agreements amount | $35.50 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases Disclosure [Line Items] | |||
Rental expense for operating leases | $44.60 | $45.80 | $35.50 |
Operating lease, future minimum payment, total | 115 | ||
Operating lease, future minimum payment, 2015 | 37.7 | ||
Operating lease, future minimum payment, 2016 | 26.2 | ||
Operating lease, future minimum payment, 2017 | 17.9 | ||
Operating lease, future minimum payment, 2018 | 13.3 | ||
Operating lease, future minimum payment, 2019 | 9.5 | ||
Operating lease, future minimum payment, 2020 and thereafter | 10.4 | ||
Capital lease, future minimum payment, total | 0.7 | ||
Capital lease, future minimum payment, 2015 | 0.5 | ||
Capital lease, future minimum payment, 2016 | 0.2 | ||
Capital lease, future minimum payment, 2017 | 0 | ||
Capital lease, future minimum payment, 2018 | 0 | ||
Capital lease, future minimum payment, 2019 | 0 | ||
Capital lease, future minimum payment, 2020 and thereafter | $0 | ||
Capital Lease | |||
Leases Disclosure [Line Items] | |||
Leases expiration date | Various dates through 2017 | ||
Operating Leases | |||
Leases Disclosure [Line Items] | |||
Leases expiration date | Various dates through 2045 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2015 | |||
Retirement Plans [Line Items] | ||||||||
Contributions to defined contribution plans | $20.20 | $19.70 | $18.10 | |||||
Minimum percentage for which multiemployer plans is funded | 100.00% | |||||||
Contributions to multi-employer plans | 2.4 | 1.9 | 2.3 | |||||
Post retirement plan description | In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. | |||||||
Years of service to qualify for a benefit from the plan in the future. | 15 years | |||||||
Weighted average discount rate used to determine U.S. postretirement benefit obligation | 4.20% | 5.05% | ||||||
Average discount rate used to determine U.S. postretirement benefit cost | 5.05% | 4.25% | 4.60% | |||||
Increase or decrease in the annual health care cost trend rates | 1.00% | |||||||
U.S. Pension Plans | ||||||||
Retirement Plans [Line Items] | ||||||||
Estimated amortization of prior service credit in next fiscal year | -1 | |||||||
Expected amortization of net actuarial losses in next fiscal year | 7 | |||||||
Net periodic benefit cost | 5.8 | 19.5 | 17.9 | |||||
Defined benefit plans that will be amortized from other comprehensive income | 11.3 | |||||||
Estimated remaining service lives of the plan participants, years | 10 years | |||||||
Accumulated benefit obligation | 278.5 | 204.9 | 204.9 | |||||
Pension plan assets, amount exceed accumulated benefit obligation | 18.7 | 18.7 | ||||||
Targeted level of equity exposure | 55.00% | |||||||
Expected long-term rate of return on assets | 7.08% | 7.50% | 7.50% | |||||
Target allocation | 100.00% | |||||||
Company contributions | 6.7 | 42.2 | ||||||
Defined Benefit Plan, unscheduled voluntary contributions by Employer | 35 | |||||||
Expected contribution by the company over the next fiscal year | 6.8 | |||||||
U.S. Pension Plans | Scenario, Forecast | ||||||||
Retirement Plans [Line Items] | ||||||||
Expected long-term rate of return on assets | 7.08% | |||||||
Non-U.S. Pension Plans | ||||||||
Retirement Plans [Line Items] | ||||||||
Estimated amortization of prior service credit in next fiscal year | 0.3 | |||||||
Expected amortization of net actuarial losses in next fiscal year | 3.2 | |||||||
Net periodic benefit cost | 18.8 | 20.3 | 17.8 | |||||
Defined benefit plans that will be amortized from other comprehensive income | 21.8 | |||||||
Accumulated benefit obligation | 195.4 | 172.3 | 172.3 | |||||
Company contributions | 9.4 | 8 | ||||||
Plan amendment | 0.9 | 0.5 | ||||||
Non-U.S. Pension Plans | Minimum | ||||||||
Retirement Plans [Line Items] | ||||||||
Estimated remaining service lives of the plan participants, years | 6 years | |||||||
Expected long-term rate of return on assets | 2.60% | [1] | 3.00% | [1] | 3.75% | [1] | ||
Non-U.S. Pension Plans | Maximum | ||||||||
Retirement Plans [Line Items] | ||||||||
Estimated remaining service lives of the plan participants, years | 22 years | |||||||
Expected long-term rate of return on assets | 6.15% | [1] | 5.75% | [1] | 5.75% | [1] | ||
U K | ||||||||
Retirement Plans [Line Items] | ||||||||
Target allocation | 100.00% | |||||||
Company contributions | 1.5 | 0.3 | ||||||
Expected contribution by the company over the next fiscal year | 1.5 | |||||||
U K | Debt Instruments | ||||||||
Retirement Plans [Line Items] | ||||||||
Percentage of total plan assets | 58.00% | |||||||
Postretirement Benefits Other Than Pensions | ||||||||
Retirement Plans [Line Items] | ||||||||
Net periodic benefit cost | 2.7 | 2.6 | 2.1 | |||||
Defined benefit plans that will be amortized from other comprehensive income | -2.3 | |||||||
Company contributions | 0.8 | 0.3 | 0.5 | |||||
Plan amendment | ($17.20) | |||||||
[1] | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent more than 90% of the total Non-U.S. projected benefit obligation. |
Changes_in_Benefit_Obligations
Changes in Benefit Obligations and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Pension Plans | |||
Retirement Plans [Line Items] | |||
Benefit obligation at beginning of year | $265.80 | $314.20 | |
Service cost | 7.3 | 9.3 | 8.3 |
Interest cost | 13 | 12.8 | 12.3 |
Change in discount rate | 58.9 | -53.1 | |
Experience | -0.5 | -17.5 | |
Other assumption changes | 18.4 | 7.1 | |
Benefits paid | -5.9 | -7 | |
Benefit obligation at end of year | 357 | 265.8 | 314.2 |
Fair value of plan assets at beginning of year | 223.6 | 159.4 | |
Actual return on plan assets | 29.4 | 29 | |
Company contributions | 6.7 | 42.2 | |
Benefits paid | -5.9 | -7 | |
Fair value of plan assets at end of year | 253.8 | 223.6 | 159.4 |
Funded status recognized in the balance sheet | -103.2 | -42.2 | |
Non-U.S. Pension Plans | |||
Retirement Plans [Line Items] | |||
Benefit obligation at beginning of year | 205 | 195.4 | |
Service cost | 13.5 | 13.5 | 12 |
Interest cost | 8.2 | 7.3 | 7.1 |
Change in discount rate | 40.4 | -8.3 | |
Experience | 1 | 2.3 | |
Other assumption changes | -1.9 | 3 | |
Plan participants' contributions | 0.2 | 0.2 | |
Plan amendments | 0.9 | 0.5 | |
Benefits paid | -8.3 | -7.7 | |
Curtailments | 0.1 | 0.1 | |
Special termination benefits | 0.5 | 0.1 | |
Other | -0.5 | -0.9 | |
Translation difference | -21.3 | -0.9 | |
Benefit obligation at end of year | 237.3 | 205 | 195.4 |
Fair value of plan assets at beginning of year | 99.9 | 94.8 | |
Actual return on plan assets | 14.2 | 3.4 | |
Company contributions | 9.4 | 8 | |
Plan participants' contributions | 0.2 | 0.2 | |
Benefits paid | -8.3 | -7.7 | |
Other | -0.2 | -0.2 | |
Translation difference | -7.2 | 1.4 | |
Fair value of plan assets at end of year | 108 | 99.9 | 94.8 |
Funded status recognized in the balance sheet | ($129.30) | ($105.10) |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $7.30 | $9.30 | $8.30 |
Interest cost | 13 | 12.8 | 12.3 |
Expected return on plan assets | -15.4 | -11.6 | -10.2 |
Amortization of prior service cost | -1 | -1 | -1 |
Amortization of actuarial loss | 1.9 | 10 | 8.5 |
Net periodic benefit cost | 5.8 | 19.5 | 17.9 |
Non-U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 13.5 | 13.5 | 12 |
Interest cost | 8.2 | 7.3 | 7.1 |
Expected return on plan assets | -4.5 | -4 | -3.9 |
Amortization of prior service cost | 0.3 | 0.2 | 0.1 |
Amortization of actuarial loss | 1.1 | 2.5 | 1.4 |
Settlement loss (gain) | 0.1 | 0.2 | 1 |
Curtailment loss (gain) | 0.1 | 0.1 | |
Special termination benefits | 0.5 | 0.1 | |
Net periodic benefit cost | 18.8 | 20.3 | 17.8 |
Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 1.3 | 1.4 | 1.1 |
Interest cost | 1.6 | 1.4 | 1.3 |
Amortization of prior service cost | -0.1 | -0.1 | -0.1 |
Amortization of actuarial loss | -0.1 | -0.1 | -0.2 |
Net periodic benefit cost | $2.70 | $2.60 | $2.10 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income Before Tax (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $106.60 | $45.60 | |
Prior service (credit) cost | -1.9 | -2.9 | |
Total accumulated other comprehensive income recognized in the balance sheet | 104.7 | 42.7 | 132.7 |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 53.8 | 29.9 | |
Prior service (credit) cost | 2.6 | 2.2 | |
Total accumulated other comprehensive income recognized in the balance sheet | 56.4 | 32.1 | 35.6 |
U.S. Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | -0.7 | -2.4 | |
Prior service (credit) cost | -17.3 | -0.2 | |
Total accumulated other comprehensive income recognized in the balance sheet | -18 | -2.6 | |
Non-U.S. Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | -1.7 | -1.8 | |
Prior service (credit) cost | 0 | 0 | |
Total accumulated other comprehensive income recognized in the balance sheet | ($1.70) | ($1.80) |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income Before Tax (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | $42.70 | $132.70 |
Net actuarial loss (gain) | 62.8 | -81 |
Amortization of prior service credit (cost) | 1 | 1 |
Amortization of actuarial loss | -1.8 | -10 |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | 104.7 | 42.7 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | 32.1 | 35.6 |
Net actuarial loss (gain) | 30.3 | -1 |
Prior service cost | 0.9 | 0.5 |
Amortization of prior service credit (cost) | -0.3 | -0.2 |
Amortization of actuarial loss | -1.2 | -2.7 |
Translation difference | -5.4 | -0.1 |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | $56.40 | $32.10 |
Pension_Plans_for_which_ABO_ex
Pension Plans for which ABO exceeds Fair Value of Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | $357 | |
Accumulated Benefit Obligation (ABO) | 278.5 | |
Fair value of plan assets | 253.8 | |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | 155.4 | 109.5 |
Accumulated Benefit Obligation (ABO) | 124.1 | 84.7 |
Fair value of plan assets | $29.60 | $4.90 |
Assumptions_to_Determine_Benef
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Detail) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
U.S. Pension Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Benefit Obligation discount rate | 4.00% | 5.00% | ||||
Benefit Obligation rate of increases in compensation level | 3.50% | 3.50% | ||||
Net periodic benefit cost discount rate | 5.00% | 4.05% | 4.60% | |||
Net periodic benefit cost rate of increases in compensation level | 3.50% | 3.50% | 3.50% | |||
Expected long-term rate of return on assets | 7.08% | 7.50% | 7.50% | |||
Non-U.S. Pension Plans | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Benefit Obligation discount rate | 0.50% | [1] | 1.00% | [1] | ||
Benefit Obligation rate of increases in compensation level | 2.25% | [1] | 2.25% | [1] | ||
Net periodic benefit cost discount rate | 1.00% | [1] | 1.50% | [1] | 1.50% | [1] |
Net periodic benefit cost rate of increases in compensation level | 2.25% | [1] | 2.25% | [1] | 2.25% | [1] |
Expected long-term rate of return on assets | 2.60% | [1] | 3.00% | [1] | 3.75% | [1] |
Non-U.S. Pension Plans | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Benefit Obligation discount rate | 4.00% | [1] | 5.00% | [1] | ||
Benefit Obligation rate of increases in compensation level | 5.00% | [1] | 5.00% | [1] | ||
Net periodic benefit cost discount rate | 5.00% | [1] | 4.50% | [1] | 5.50% | [1] |
Net periodic benefit cost rate of increases in compensation level | 5.00% | [1] | 5.00% | [1] | 5.00% | [1] |
Expected long-term rate of return on assets | 6.15% | [1] | 5.75% | [1] | 5.75% | [1] |
[1] | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent more than 90% of the total Non-U.S. projected benefit obligation. |
Assumptions_to_Determine_Benef1
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Parenthetical) (Detail) (Minimum, Non-U.S. Pension Plans) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Projected benefit obligation | 90.00% |
Fair_Value_of_Total_Plan_Asset
Fair Value of Total Plan Assets (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 100.00% | |
Fair Value allocation | 100.00% | 100.00% |
U.S. Pension Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 55.00% | |
Fair Value allocation | 54.00% | 57.00% |
U.S. Pension Plans | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 45.00% | |
Fair Value allocation | 46.00% | 43.00% |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 100.00% | 100.00% |
Non-U.S. Pension Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 15.00% | 15.00% |
Non-U.S. Pension Plans | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 63.00% | 59.00% |
Non-U.S. Pension Plans | Other Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 22.00% | 26.00% |
Summary_of_Fair_Value_of_Compa
Summary of Fair Value of Company's Plan Assets (Detail) (Fair Value, Inputs, Level 2, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value of plan assets | $361.80 | $323.50 |
US Equity | Large Cap | ||
Fair value of plan assets | 90.9 | 82.5 |
US Equity | Mid Cap | ||
Fair value of plan assets | 10.7 | 9.8 |
US Equity | Small Cap | ||
Fair value of plan assets | 10.7 | 9.7 |
Non-US Equity | ||
Fair value of plan assets | 42.2 | 40.4 |
US Bonds | Aggregate | ||
Fair value of plan assets | 115.9 | 96.5 |
Non-US Bonds | Aggregate | ||
Fair value of plan assets | 5.7 | 5.7 |
Non-US Bonds | Corporate | ||
Fair value of plan assets | 62.6 | 52.8 |
Insurance Contracts | ||
Fair value of plan assets | 15.7 | 19.2 |
Other Investment | ||
Fair value of plan assets | $7.40 | $6.90 |
Estimated_Future_Benefit_Expec
Estimated Future Benefit Expected Payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $13.30 |
2016 | 15 |
2017 | 17.4 |
2018 | 18.5 |
2019 | 20.8 |
Years 2020 - 2024 | 129.5 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 6.6 |
2016 | 7 |
2017 | 7.8 |
2018 | 8.6 |
2019 | 9.2 |
Years 2020 - 2024 | 61.1 |
Postretirement Benefits Other Than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 0.6 |
2016 | 0.7 |
2017 | 0.7 |
2018 | 0.8 |
2019 | 0.9 |
Years 2020 - 2024 | $5.30 |
Changes_Benefit_Obligation_and
Changes Benefit Obligation and Plan Assets (Detail) (Postretirement Benefits Other Than Pensions, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Postretirement Benefits Other Than Pensions | |||
Retirement Plans [Line Items] | |||
Benefit obligation at beginning of year | $34.30 | $34.60 | $30.80 |
Service cost | 1.3 | 1.4 | 1.1 |
Interest cost | 1.6 | 1.4 | 1.3 |
Change in discount rate | 2.4 | -3.7 | 1.9 |
Experience | -1.1 | 1 | -3.1 |
Other assumption changes | 0.4 | -1 | 3.2 |
Plan amendments | -17.2 | ||
Benefits paid | -0.8 | -0.3 | -0.5 |
Other | 0.1 | 0.9 | -0.1 |
Benefit obligation at end of year | 21 | 34.3 | 34.6 |
Fair value of plan assets at beginning of year | 0 | 0 | 0 |
Company contributions | 0.8 | 0.3 | 0.5 |
Benefits paid | -0.8 | -0.3 | -0.5 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Accrued postretirement benefit cost recognized in the balance sheet | ($21) | ($34.30) | ($34.60) |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 | ||
Net sales reclassification amount | $31 | ||
Long-lived assets, Total | 3,307 | 3,283 | |
Long-lived intangible assets from acquisition goodwill | 1,476 | 1,485 | |
Maximum | Active Safety Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of product sales to total sales | 6.00% | ||
U.S. | |||
Segment Reporting Information [Line Items] | |||
External sales | 2,269 | 2,122 | 2,073 |
Long-lived assets, Total | 1,733 | 1,741 | |
Exports from U.S. to other Regions | |||
Segment Reporting Information [Line Items] | |||
External sales | $459 | $488 | $543 |
Customer Concentration Risk | Sales | GM | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 14.00% | 14.00% | 15.00% |
Customer Concentration Risk | Sales | Renault | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 11.00% | 11.00% | 11.00% |
Customer Concentration Risk | Sales | Ford | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 11.00% | 11.00% | 11.00% |
Net_Sales_by_Geographical_Area
Net Sales by Geographical Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $2,353.70 | $2,208 | $2,383 | $2,295.80 | $2,351.90 | $2,119 | $2,197.50 | $2,135 | $9,240.50 | $8,803.40 | $8,266.70 |
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,097.90 | 2,974.10 | 2,752.20 | ||||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,521.60 | 1,405.50 | 1,097.60 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 687.7 | 688.2 | 830.5 | ||||||||
Rest Of Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 888.6 | 880.4 | 824.1 | ||||||||
Continents of North and South America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,099.40 | 2,943.60 | 2,839.10 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $3,043.20 | $2,885.70 | $2,675.40 |
Sales_by_Product_Detail
Sales by Product (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $2,353.70 | $2,208 | $2,383 | $2,295.80 | $2,351.90 | $2,119 | $2,197.50 | $2,135 | $9,240.50 | $8,803.40 | $8,266.70 | |||
Airbags And Associated Products | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 5,951.30 | [1] | 5,686 | [1] | 5,392 | [1] | ||||||||
Seatbelts And Associated Products | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,800.10 | 2,772.70 | 2,656.50 | |||||||||||
Active Safety Products | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $489.10 | $344.70 | $218.20 | |||||||||||
[1] | Includes sales of steering wheels, passive safety electronics and inflators. |
Longlived_Assets_by_Geographic
Long-lived Assets by Geographical Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $3,307 | $3,283 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 696 | 612 |
China | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 391 | 277 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 98 | 106 |
Rest Of Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 207 | 229 |
Continents of North and South America | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 1,906 | 1,927 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $705 | $744 |
Schedule_of_Actual_Weighted_Av
Schedule of Actual Weighted Average Shares Used in Calculating Earnings Per Share (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | |||
Weighted average shares basic | 92.1 | 95.5 | 93.5 |
Effect of dilutive securities: | |||
stock options/share awards | 0.3 | 0.4 | 0.3 |
equity units | 1.3 | ||
Weighted average shares diluted | 92.4 | 95.9 | 95.1 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | ||
Apr. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share Basic And Diluted [Line Items] | ||||
Shares included in dilutive weighted average share amounts related to equity units | 1,300,000 | |||
Number of shares outstanding increased due to the settlement of the remaining equity units | 5,800,000 | |||
Potentially dilutive shares | 0 | 0 | 400,000 |
Quarterly_Financial_Informatio
Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Quarterly Financial Data [Line Items] | ||||||||||||||
Net sales | $2,353.70 | $2,208 | $2,383 | $2,295.80 | $2,351.90 | $2,119 | $2,197.50 | $2,135 | $9,240.50 | $8,803.40 | $8,266.70 | |||
Gross profit | 467.9 | 426.4 | 464.2 | 445.3 | 454.9 | 404.9 | 430.5 | 414.3 | 1,803.80 | 1,704.60 | 1,646.20 | |||
Income before taxes | 203.3 | 156.5 | 122.9 | 184.3 | 194.6 | 176.6 | 192.7 | 170.1 | 667 | 734 | 668.6 | |||
Net income | 148 | 106.7 | 83.2 | 131.1 | 100.5 | 124.9 | 139.4 | 125.1 | 469 | [1] | 489.9 | [1] | 485.6 | [1] |
Net income attributable to controlling interest | $148.20 | $106.50 | $82.80 | $130.30 | $99.70 | $123.90 | $138.70 | $123.50 | $467.80 | $485.80 | $483.10 | |||
Earnings per share - basic | $1.65 | $1.16 | $0.89 | $1.39 | $1.05 | $1.29 | $1.45 | $1.29 | $5.08 | $5.09 | $5.17 | |||
Earnings per share - diluted | $1.65 | $1.16 | $0.89 | $1.38 | $1.04 | $1.29 | $1.44 | $1.29 | $5.06 | $5.07 | $5.08 | |||
Dividends paid | $0.54 | $0.54 | $0.52 | $0.52 | $0.50 | $0.50 | $0.50 | $0.50 | $2.12 | $2 | $1.89 | |||
[1] | See Note 13 for further details - includes tax effects where applicable. |