Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 16, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ALV | |
Entity Registrant Name | AUTOLIV INC | |
Entity Central Index Key | 1034670 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 88,015,446 |
Consolidated_Statements_of_Net
Consolidated Statements of Net Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net sales | $2,174.10 | $2,295.80 |
Cost of sales | -1,750.80 | -1,850.50 |
Gross profit | 423.3 | 445.3 |
Selling, general and administrative expenses | -100.6 | -102.5 |
Research, development and engineering expenses, net | -126.5 | -142.2 |
Amortization of intangibles | -3.7 | -4.1 |
Other income (expense), net | -112.5 | -4.8 |
Operating income | 80 | 191.7 |
Income from equity method investments | 1.3 | 1.7 |
Interest income | 0.4 | 1.2 |
Interest expense | -17.1 | -8 |
Other non-operating items, net | -0.1 | -2.3 |
Income before income taxes | 64.5 | 184.3 |
Income tax expense | -28.8 | -53.2 |
Net income | 35.7 | 131.1 |
Less: Net income attributable to non-controlling interest | 0 | 0.8 |
Net income attributable to controlling interest | $35.70 | $130.30 |
Net earnings per share - basic | $0.40 | $1.39 |
Net earnings per share - diluted | $0.40 | $1.38 |
Weighted average number of shares outstanding, net of treasury shares (in millions) | 88.4 | 94 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | 88.6 | 94.3 |
Number of shares outstanding, excluding dilution and net of treasury shares (in millions) | 88 | 93.7 |
Cash dividend per share - declared | $0.56 | $0.52 |
Cash dividend per share - paid | $0.54 | $0.52 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $35.70 | $131.10 |
Other comprehensive (loss) income before tax: | ||
Change in cumulative translation adjustments | -110.8 | -1.6 |
Net change in unrealized components of defined benefit plans | 2.2 | -0.1 |
Other comprehensive loss, before tax | -108.6 | -1.7 |
Cost for taxes related to defined benefit pension plan | -0.7 | 0 |
Other comprehensive loss, net of tax | -109.3 | -1.7 |
Comprehensive income | -73.6 | 129.4 |
Less: Comprehensive income attributable to non-controlling interest | 0 | 0.4 |
Comprehensive income attributable to controlling interest | ($73.60) | $129 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $1,364.10 | $1,529 | ||
Receivables, net | 1,783.30 | 1,706.30 | ||
Inventories, net | 652.7 | 675.5 | ||
Other current assets | 217.3 | 225.4 | ||
Total current assets | 4,017.40 | 4,136.20 | ||
Property, plant and equipment, net | 1,384.70 | 1,390.20 | ||
Investments and other non-current assets | 268.2 | 255.3 | ||
Goodwill | 1,583.60 | 1,594 | ||
Intangible assets, net | 72.6 | 67.2 | ||
Total assets | 7,326.50 | 7,442.90 | ||
Liabilities and equity | ||||
Short-term debt | 124.3 | [1] | 79.6 | [1] |
Accounts payable | 1,093.10 | 1,091.50 | ||
Accrued expenses | 797.6 | 720.1 | ||
Other current liabilities | 241.2 | 247.4 | ||
Total current liabilities | 2,256.20 | 2,138.60 | ||
Long-term debt | 1,511 | [1] | 1,521.20 | [1] |
Pension liability | 226.7 | 232.5 | ||
Other non-current liabilities | 107 | 108.5 | ||
Total non-current liabilities | 1,844.70 | 1,862.20 | ||
Common stock | 102.8 | 102.8 | ||
Additional paid-in capital | 1,329.30 | 1,329.30 | ||
Retained earnings | 3,226.30 | 3,240 | ||
Accumulated other comprehensive (loss) income | -362.3 | -253 | ||
Treasury stock | -1,085.50 | -992 | ||
Total controlling interest | 3,210.60 | 3,427.10 | ||
Non-controlling interest | 15 | 15 | ||
Total equity | 3,225.60 | 3,442.10 | ||
Total liabilities and equity | $7,326.50 | $7,442.90 | ||
[1] | Debt as reported in balance sheet. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net income | $35.70 | $131.10 |
Depreciation and amortization | 73.7 | 73.8 |
Other, net | -19 | -5.6 |
Changes in operating assets and liabilities | -6.2 | -14 |
Net cash provided by operating activities | 84.2 | 185.3 |
Investing activities | ||
Expenditures for property, plant and equipment | -134.8 | -93.3 |
Proceeds from sale of property, plant and equipment | 6.8 | 0.6 |
Acquisitions and divestitures of businesses and other, net | -3.2 | -1.4 |
Net cash used in investing activities | -131.2 | -94.1 |
Financing activities | ||
Net increase in short-term debt | 55.3 | 17.4 |
Repayments and other changes in long-term debt | -0.4 | |
Dividends paid to non-controlling interest | -3.1 | |
Dividends paid | -47.8 | -48.8 |
Repurchased shares | -104.4 | -94.3 |
Common stock options exercised | 11 | 15.9 |
Net cash used in financing activities | -85.9 | -113.3 |
Effect of exchange rate changes on cash and cash equivalents | -32 | 0.6 |
Decrease in cash and cash equivalents | -164.9 | -21.5 |
Cash and cash equivalents at beginning of period | 1,529 | 1,118.30 |
Cash and cash equivalents at end of period | $1,364.10 | $1,096.80 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation | 1 Basis of Presentation |
The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited financial statements and all adjustments considered necessary for a fair presentation have been included in the financial statements. All such adjustments are of a normal recurring nature. The result for the interim period is not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2015. Certain prior-year amounts have been reclassified to conform to current year presentation. | |
The Condensed Consolidated Balance Sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. | |
Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 19, 2015. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Recently Issued Accounting Pronouncements | 2 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 although the FASB has proposed a one-year deferral in the effective date of the new standard for US GAAP preparers. Early adoption is not permitted. The Company is currently in process of evaluating which adoption method to use and assessing the potential impact the new standard will have on its operations and 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 early adopted the standard in its interim reporting for September 30, 2014; however the adoption of ASU 2014-15 had no imapct on the Company’s disclosures in the unaudited condensed consolidated financial statements. |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value Measurement | 3 Fair Value Measurement | ||||||||||||||||||||||||
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 March 31, 2015 were foreign exchange swaps. All swaps principally match the terms and maturity of the underlying debt and no swaps have a maturity beyond six months. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. | |||||||||||||||||||||||||
When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statement of Net Income along with the off-setting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statement of Net Income when the hedge transaction affects net earnings. There were no derivatives designated as hedging instruments outstanding as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
The Company’s derivatives are all classified as Level 2 of the fair value hierarchy and there have been no transfers between the levels during this or comparable periods. | |||||||||||||||||||||||||
The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheet at March 31, 2015 and in the Consolidated Balance Sheet at December 31, 2014, 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. | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||
Measurements | Measurements | ||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Nominal | Derivative | Derivative | |||||||||||||||||||
volume | asset | liability | volume | asset | liability | ||||||||||||||||||||
(Other | (Other | (Other | (Other | ||||||||||||||||||||||
current | current | current | current | ||||||||||||||||||||||
assets) | liabilities) | assets) | liabilities) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 288.7 | 1) | $ | 0.1 | 2) | $ | 1.5 | 3) | $ | 459.1 | 4) | $ | 1.3 | 5) | $ | 0.4 | 6) | |||||||
Total derivatives not designated as hedging instruments | 288.7 | $ | 0.1 | $ | 1.5 | $ | 459.1 | $ | 1.3 | $ | 0.4 | ||||||||||||||
1) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $230.4 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.1 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.5 million. | ||||||||||||||||||||||||
4) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. | ||||||||||||||||||||||||
5) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. | ||||||||||||||||||||||||
6) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 million. | ||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
There were no derivatives designated as hedging instruments outstanding as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
All amounts recognized in the Consolidated Statement of Net Income related to derivatives, not designated as hedging instruments, relate to economic hedges and thus have been materially off-set by an opposite Consolidated Statement of Net Income effect of the related financial liabilities or financial assets. The derivatives not designated as hedging instruments outstanding at March 31, 2015 were foreign exchange swaps. For the three months ended March 31, 2015, the gains and losses recognized in other financial items, net were a loss of $2.3 million, for derivative instruments not designated as hedging instruments. For the three months ended March 31, 2014, the Company recognized a gain of $1.6 million, in other financial items, net for derivative instruments not designated as hedging instruments. For the three months ended March 31, 2015 and March 31, 2014, 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. | |||||||||||||||||||||||||
March 31, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2015 | 2015 | 2014 | 2014 | ||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Long-term debt | value1) | value | value1) | value | |||||||||||||||||||||
U.S. Private placement | $ | 1,423.50 | $ | 1,535.30 | $ | 1,424.20 | $ | 1,510.20 | |||||||||||||||||
Medium-term notes | 75.4 | 78.4 | 83.2 | 86.3 | |||||||||||||||||||||
Other long-term debt | 12.1 | 12.1 | 13.8 | 13.8 | |||||||||||||||||||||
Total | $ | 1,511.00 | $ | 1,625.80 | $ | 1,521.20 | $ | 1,610.30 | |||||||||||||||||
Short-term debt | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 105.7 | $ | 105.7 | $ | 57.8 | $ | 57.8 | |||||||||||||||||
Short-term portion of long-term debt | 18.6 | 18.6 | 21.8 | 21.8 | |||||||||||||||||||||
Total | $ | 124.3 | $ | 124.3 | $ | 79.6 | $ | 79.6 | |||||||||||||||||
1) | Debt as reported in balance sheet. | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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 the three months ended March 31, 2015, the Company did not record any impairment charges on its long-lived assets. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes | 4 Income Taxes |
The effective tax rate in the first quarter 2015 was 44.6% compared to 28.9% in the same quarter of 2014. Net discrete tax cost in the quarter had a negative impact of 10.1 percentage points, primarily related to tax costs for adjustments to prior years arising from tax audits. In addition, income before taxes was negatively impacted by approximately $77 million related to the OEM settlements, generating a tax benefit of approximately $21 million. The settlements caused a net unfavorable mix impact on the effective tax rate in the quarter of 3.6 percentage points. In the first quarter of 2014, discrete tax items were immaterial. | |
The Company files income tax returns in the United States federal jurisdiction, various state jurisdictions and foreign jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is 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. | |
As of March 31, 2015, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods. | |
During the first quarter of 2015, the Company recorded a net increase of $2.9 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, and also recorded a net increase of $3.5 million for unrecognized tax benefits related to prior years, including accruing additional interest related to unrecognized tax benefits of prior years. Of the total unrecognized tax benefits of $27.8 million recorded at March 31, 2015, $6.8 million is classified as current tax payable and $21.0 million is classified as non-current tax payable on the Condensed Consolidated Balance Sheet. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories | 5 Inventories | ||||||||
Inventories are stated at the lower of cost (principally FIFO) or market. The components of inventories were as follows: | |||||||||
As of | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Raw materials | $ | 302.7 | $ | 312.2 | |||||
Work in progress | 236.3 | 240.6 | |||||||
Finished products | 193.6 | 206 | |||||||
Inventories | 732.6 | 758.8 | |||||||
Inventory valuation reserve | (79.9 | ) | (83.3 | ) | |||||
Total inventories, net of reserve | $ | 652.7 | $ | 675.5 |
Goodwill
Goodwill | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill | 6 Goodwill | ||||||||||||
Due to the new segment reporting effective as of January 1, 2015, the goodwill allocated to the previous reporting unit Passive Safety Systems has been reallocated to the new segments, Passive Safety and Electronics. The allocation was made based on the relative fair values of the two new businesses transferred as of January 1, 2015, see table below. The estimated relative fair values of the businesses transferred were determined using the discounted cash flow method taking into account expected long-term operating cash flow performance (for further information, see Note 1, Summary of significant accounting policies, in the Company’s Annual Report on Form 10-K). The amount of goodwill held in the previous Active Safety Systems reporting unit was allocated to the new Electronics segment as this old reporting unit rolls up fully into the new Electronics segment. | |||||||||||||
The Company’s impairment testing will be based on the new segments: 1) Passive Safety and 2) Electronics. | |||||||||||||
Previous reporting units | Passive Safety | Active Safety | Total | ||||||||||
Systems | Systems1) | ||||||||||||
Balance December 31, 2014 | $ | 1,586.20 | $ | 7.8 | $ | 1,594.00 | |||||||
New segments | Passive Safety | Electronics1) | Total | ||||||||||
Balance January 1, 2015 before goodwill reallocation | $ | 1,586.20 | $ | 7.8 | $ | 1,594.00 | |||||||
Allocation of goodwill due to change in segment reporting | (185.7 | ) | 185.7 | — | |||||||||
Balance January 1, 2015 after goodwill reallocation | $ | 1,400.50 | $ | 193.5 | $ | 1,594.00 | |||||||
Effect of currency translation | (10.4 | ) | — | (10.4 | ) | ||||||||
Balance March 31, 2015 | $ | 1,390.10 | $ | 193.5 | $ | 1,583.60 | |||||||
1) | As of January 1, 2015, the goodwill amount related to the reporting unit Active Safety Systems was allocated to the Electronics segment, shown in the table above. |
Restructuring
Restructuring | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Restructuring | 7 Restructuring | ||||||||||||||||||||||||
Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under existing credit facilities. The Company does not expect that the execution of these activities will have a material adverse impact on its liquidity position. | |||||||||||||||||||||||||
First quarter of 2015 | |||||||||||||||||||||||||
The employee-related restructuring provisions and cash payments in the first quarter of 2015 mainly related to headcount reductions in high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2014 to March 31, 2015. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | March 31, | ||||||||||||||||||||
2014 | Charge | Reversal | payments | difference | 2015 | ||||||||||||||||||||
Restructuring employee-related | $ | 79.6 | $ | 35.5 | $ | (0.9 | ) | $ | (25.9 | ) | $ | (9.0 | ) | $ | 79.3 | ||||||||||
Other | 0.2 | 0.1 | — | (0.3 | ) | — | — | ||||||||||||||||||
Total reserve | $ | 79.8 | $ | 35.6 | $ | (0.9 | ) | $ | (26.2 | ) | $ | (9.0 | ) | $ | 79.3 | ||||||||||
2014 | |||||||||||||||||||||||||
In 2014, the employee-related restructuring provisions and cash payments mainly related to headcount reductions in high-cost countries in Europe. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 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 |
ProductRelated_Liabilities
Product-Related Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product-Related Liabilities | 8 Product-Related Liabilities | ||||||||
The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. For further explanation, see Note 11 Contingent Liabilities below. | |||||||||
The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions for the three months ended March 31, 2015 mainly relate to warranty related issues. The cash paid for the three months ended March 31, 2015 mainly relate to warranty related issues. The provisions and cash paid for the three months ended March 31, 2014 mainly related to warranty related issues. | |||||||||
Three months ended | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Reserve at beginning of the period | $ | 51.3 | $ | 36.4 | |||||
Change in reserve | 1.8 | 7.3 | |||||||
Cash payments | (4.5 | ) | (2.7 | ) | |||||
Translation difference | (1.4 | ) | (0.2 | ) | |||||
Reserve at end of the period | $ | 47.2 | $ | 40.8 |
Retirement_Plans
Retirement Plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Retirement Plans | 9 Retirement Plans | ||||||||
The Company has contributory and non-contributory defined benefit pension plans covering employees at most operations in the United States and in certain other countries. The main plan is the U.S. plan for which the benefits are based on an average of the employee’s earnings in the years preceding retirement and on credited service. Certain supplemental funded and unfunded plan arrangements also provide retirement benefits to specified groups of participants. | |||||||||
The Company has frozen participation in the U.S. pension plans to include only those employees hired as of December 31, 2003. The U.K. defined benefit plan is the most significant individual non-U.S. pension plan and the Company has frozen participation to include only those employees hired as of April 30, 2003. | |||||||||
The Net Periodic Benefit Costs related to Other Post-retirement Benefits were not significant to the condensed consolidated financial statements of the Company for the three months ended March 31, 2015 and March 31, 2014 and are not included in the table below. | |||||||||
For further information on Pension Plans and Other Post-retirement Benefits, see Note 18 to the Consolidated Financial Statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on February 19, 2015. | |||||||||
The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: | |||||||||
Three months ended | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Service cost | $ | 5.8 | $ | 5.3 | |||||
Interest cost | 5.3 | 5.3 | |||||||
Expected return on plan assets | (5.3 | ) | (5.0 | ) | |||||
Amortization prior service credit | (0.2 | ) | (0.2 | ) | |||||
Amortization of actuarial loss | 2.5 | 0.7 | |||||||
Net Periodic Benefit Cost | $ | 8.1 | $ | 6.1 |
Controlling_and_NonControlling
Controlling and Non-Controlling Interest | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Controlling and Non-Controlling Interest | 10 Controlling and Non-Controlling Interest | ||||||||||||||||||||||||
Three Months ended | |||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Controlling | Non- | Total | Controlling | Non- | Total | ||||||||||||||||||||
interest | controlling | interest | controlling | ||||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,427.10 | $ | 15 | $ | 3,442.10 | $ | 3,981.30 | $ | 19.1 | $ | 4,000.40 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 35.7 | 0 | 35.7 | 130.3 | 0.8 | 131.1 | |||||||||||||||||||
Foreign currency translation | (110.8 | ) | (0.0 | ) | (110.8 | ) | (1.2 | ) | (0.4 | ) | (1.6 | ) | |||||||||||||
Defined benefit pension plan | 1.5 | — | 1.5 | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Total Comprehensive Income | (73.6 | ) | 0 | (73.6 | ) | 129 | 0.4 | 129.4 | |||||||||||||||||
Common Stock incentives | 10.9 | — | 10.9 | 16.3 | — | 16.3 | |||||||||||||||||||
Cash dividends declared | (49.4 | ) | — | (49.4 | ) | (48.7 | ) | — | (48.7 | ) | |||||||||||||||
Repurchased shares | (104.4 | ) | — | (104.4 | ) | (94.4 | ) | — | (94.4 | ) | |||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | — | — | — | (3.1 | ) | (3.1 | ) | |||||||||||||||||
Balance at end of period | $ | 3,210.60 | $ | 15 | $ | 3,225.60 | $ | 3,983.50 | $ | 16.4 | $ | 3,999.90 |
Contingent_Liabilities
Contingent Liabilities | 3 Months Ended |
Mar. 31, 2015 | |
Contingent Liabilities | 11 Contingent Liabilities |
Legal Proceedings | |
Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in the future. | |
In October 2014, one of the Company’s Brazilian subsidiaries received a notice of deficiency from the state tax authorities from the state of São Paulo, Brazil which, primarily, alleged violations of ICMS (VAT) payments and improper warehousing documentation. The aggregate assessment for all alleged violations was R$55 million (approximately $17.3 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. | |
In March 2015, the Company was informed of an investigation being conducted in Turkey by the Directorate of Kocaeli Customs Custody, Smuggling and Enquiry into the Company’s import and customs payment structure and the associated import taxes and fees for the period of 2006-2012. 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 made no provision for any expenses as of March 31, 2015 with respect to this investigation. | |
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. | |
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 March 31, 2015. 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. | |
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 March 31, 2015 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 October 2013. Fourteen of these lawsuits were filed in the U.S. and have been consolidated in the Occupant Safety Systems (OSS) segment of the Automobile Parts Antitrust Litigation, a Multi-District Litigation (MDL) proceeding in the United States District Court for the Eastern District of Michigan. | |
On May 30, 2014, the Company, without admitting any liability, entered into separate settlement agreements with representatives of each of the three classes of plaintiffs in the MDL, 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. 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. | |
In March 2015, Autoliv reached agreements regarding additional settlements to resolve certain direct purchasers’ global (including U.S.) or non-U.S. antitrust claims which were not covered by its U.S. direct purchaser settlement described above. The total amount of these additional settlements is $81 million. Autoliv has expensed during the first quarter of 2015 approximately $77 million as a result of these additional settlements, net of existing amounts that had been accrued for in 2014. In entering into these agreements, Autoliv did not admit any liability and settled for the purpose of avoiding the uncertainty, risk, expense and distraction of potential litigation or other adversarial proceedings and in the interest of maintaining positive relationships with its customers. | |
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 March 31, 2015. There is currently no timeline for class certification or discovery in the Canadian cases. | |
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. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer. Accordingly, the future costs of warranty claims by the customers may be material. However, the Company believes its established reserves are adequate to cover potential warranty settlements. Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts determined to be due related to these matters could differ materially from the Company’s recorded estimates. | |
In addition, the global platforms and procedures used by vehicle manufacturers have led to quality performance evaluations being conducted on an increasingly global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations. | |
The Company believes that it is currently reasonably insured against recall and product liability risks, at levels sufficient to cover potential claims that are reasonably likely to arise in the Company’s businesses based on past experience. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend or increase insurance. | |
In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material. | |
The table in Note 8 Product-Related Liabilities above summarizes the change in the balance sheet position of the product related liabilities for the three months ended March 31, 2015 and March 31, 2014. |
Earnings_per_share
Earnings per share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings per share | 12 Earnings per share | ||||||||
The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). When it would not be antidilutive (such as during periods of net loss), the diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the Stock Incentive Plan. | |||||||||
For the three months ended March 31, 2015, approximately 0.2 million shares of common stock were not included in the computation of the diluted EPS, which could potentially dilute basic EPS in the future. | |||||||||
During the three months ended March 31, 2015 and March 31, 2014 approximately 0.2 million and 0.3 million shares of common stock, respectively, from the treasury stock have been utilized by the Stock Incentive Plan. | |||||||||
Actual weighted average shares used in calculating earnings per share were: | |||||||||
(In millions) | Three months ended | ||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Weighted average shares basic | 88.4 | 94 | |||||||
Effect of dilutive securities: - stock options/share awards | 0.2 | 0.3 | |||||||
Weighted average shares diluted | 88.6 | 94.3 |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Information | 13 Segment Information | ||||||||
As of January 1, 2015 the Company changed its operating structure and now has two operating segments, Passive Safety and Electronics. Passive Safety includes Autoliv’s airbag and seatbelt businesses, while Electronics combines all of Autoliv’s electronics resources and expertise in both passive safety electronics and active safety. The change in operating structure, by integrating the passive electronics and active safety businesses into the new segment Electronics, has been made in order to more efficiently manage the Company’s business operations and allow for future growth. Additionally, changes made to the internal financial information and operating results of the new operating segments are regularly reviewed by the Company’s chief operating decision maker to assess the performance of the individual operating segments and make decisions about resources to be allocated to the operating segments. The Company began reporting its results under the two new operating segments, Passive Safety and Electronics, commencing with this quarterly report for the period ending March 31, 2015. The Company has also recasted the corresponding items of segment information for the period ended March 31, 2014 as set forth below. | |||||||||
Three months ended | |||||||||
Net sales, including Intersegment Sales | March 31, | March 31, | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 1,830.40 | $ | 1,951.50 | |||||
Electronics | 351.2 | 354.8 | |||||||
Total segment sales | $ | 2,181.60 | $ | 2,306.30 | |||||
Corporate and other | 4.2 | 4 | |||||||
Intersegment sales | (11.7 | ) | (14.5 | ) | |||||
Total net sales | $ | 2,174.10 | $ | 2,295.80 | |||||
Three months ended | |||||||||
Income before Income Taxes | March 31, | 31-Mar | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 63.2 | $ | 155.8 | |||||
Electronics | 9 | 18.7 | |||||||
Segment operating income | $ | 72.2 | $ | 174.5 | |||||
Corporate and other | 7.8 | 17.2 | |||||||
Interest and other non-operating expenses, net | (16.8 | ) | (9.1 | ) | |||||
Income from equity method investments | 1.3 | 1.7 | |||||||
Income before income taxes | $ | 64.5 | $ | 184.3 | |||||
Three months ended | |||||||||
Capital Expenditures | March 31, | 31-Mar | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 121.2 | $ | 80.4 | |||||
Electronics | 11.6 | 12.5 | |||||||
Corporate and other | 2 | 0.4 | |||||||
Total capital expenditures | $ | 134.8 | $ | 93.3 | |||||
Three months ended | |||||||||
Depreciation and Amortization | March 31, | March 31 | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 61.8 | $ | 61.9 | |||||
Electronics | 10.7 | 10.4 | |||||||
Corporate and other | 1.2 | 1.5 | |||||||
Total depreciation and amortization | $ | 73.7 | $ | 73.8 | |||||
As of | |||||||||
Segment Assets | March 31, | December 31 | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 5,778.90 | $ | 5,782.30 | |||||
Electronics | 745.9 | 713.9 | |||||||
Segment assets | $ | 6,524.80 | $ | 6,496.20 | |||||
Corporate and other1) | 801.7 | 946.7 | |||||||
Total assets | $ | 7,326.50 | $ | 7,442.90 | |||||
1) | Corporate and other assets mainly consists of cash and cash equivalents, income taxes and equity method investments. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events | 14 Subsequent Events |
There were no reportable events subsequent to March 31, 2015. |
Fair_Value_Measurement_Policie
Fair Value Measurement (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Financial Instruments | All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. |
When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statement of Net Income along with the off-setting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statement of Net Income when the hedge transaction affects net earnings. There were no derivatives designated as hedging instruments outstanding as of March 31, 2015 and December 31, 2014. | |
The Company’s derivatives are all classified as Level 2 of the fair value hierarchy and there have been no transfers between the levels during this or comparable periods. | |
Inventories | Inventories are stated at the lower of cost (principally FIFO) or market. |
Restructuring Provisions | Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. |
Contingent Liabilities | Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts determined to be due related to these matters could differ materially from the Company’s recorded estimates. |
Earnings Per Share | The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). When it would not be antidilutive (such as during periods of net loss), the diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the Stock Incentive Plan. |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheet at March 31, 2015 and in the Consolidated Balance Sheet at December 31, 2014, 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. | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||
Measurements | Measurements | ||||||||||||||||||||||||
Description | Nominal | Derivative | Derivative | Nominal | Derivative | Derivative | |||||||||||||||||||
volume | asset | liability | volume | asset | liability | ||||||||||||||||||||
(Other | (Other | (Other | (Other | ||||||||||||||||||||||
current | current | current | current | ||||||||||||||||||||||
assets) | liabilities) | assets) | liabilities) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange swaps, less than 6 months | $ | 288.7 | 1) | $ | 0.1 | 2) | $ | 1.5 | 3) | $ | 459.1 | 4) | $ | 1.3 | 5) | $ | 0.4 | 6) | |||||||
Total derivatives not designated as hedging instruments | 288.7 | $ | 0.1 | $ | 1.5 | $ | 459.1 | $ | 1.3 | $ | 0.4 | ||||||||||||||
1) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $230.4 million. | ||||||||||||||||||||||||
2) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.1 million. | ||||||||||||||||||||||||
3) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.5 million. | ||||||||||||||||||||||||
4) | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. | ||||||||||||||||||||||||
5) | Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. | ||||||||||||||||||||||||
6) | Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 million. | ||||||||||||||||||||||||
Fair Value of Debt | 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. | |||||||||||||||||||||||||
March 31, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2015 | 2015 | 2014 | 2014 | ||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Long-term debt | value1) | value | value1) | value | |||||||||||||||||||||
U.S. Private placement | $ | 1,423.50 | $ | 1,535.30 | $ | 1,424.20 | $ | 1,510.20 | |||||||||||||||||
Medium-term notes | 75.4 | 78.4 | 83.2 | 86.3 | |||||||||||||||||||||
Other long-term debt | 12.1 | 12.1 | 13.8 | 13.8 | |||||||||||||||||||||
Total | $ | 1,511.00 | $ | 1,625.80 | $ | 1,521.20 | $ | 1,610.30 | |||||||||||||||||
Short-term debt | |||||||||||||||||||||||||
Overdrafts and other short-term debt | $ | 105.7 | $ | 105.7 | $ | 57.8 | $ | 57.8 | |||||||||||||||||
Short-term portion of long-term debt | 18.6 | 18.6 | 21.8 | 21.8 | |||||||||||||||||||||
Total | $ | 124.3 | $ | 124.3 | $ | 79.6 | $ | 79.6 | |||||||||||||||||
1) | Debt as reported in balance sheet. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Components of Inventories | The components of inventories were as follows: | ||||||||
As of | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Raw materials | $ | 302.7 | $ | 312.2 | |||||
Work in progress | 236.3 | 240.6 | |||||||
Finished products | 193.6 | 206 | |||||||
Inventories | 732.6 | 758.8 | |||||||
Inventory valuation reserve | (79.9 | ) | (83.3 | ) | |||||
Total inventories, net of reserve | $ | 652.7 | $ | 675.5 |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Summary of Goodwill | The Company’s impairment testing will be based on the new segments: 1) Passive Safety and 2) Electronics. | ||||||||||||
Previous reporting units | Passive Safety | Active Safety | Total | ||||||||||
Systems | Systems1) | ||||||||||||
Balance December 31, 2014 | $ | 1,586.20 | $ | 7.8 | $ | 1,594.00 | |||||||
New segments | Passive Safety | Electronics1) | Total | ||||||||||
Balance January 1, 2015 before goodwill reallocation | $ | 1,586.20 | $ | 7.8 | $ | 1,594.00 | |||||||
Allocation of goodwill due to change in segment reporting | (185.7 | ) | 185.7 | — | |||||||||
Balance January 1, 2015 after goodwill reallocation | $ | 1,400.50 | $ | 193.5 | $ | 1,594.00 | |||||||
Effect of currency translation | (10.4 | ) | — | (10.4 | ) | ||||||||
Balance March 31, 2015 | $ | 1,390.10 | $ | 193.5 | $ | 1,583.60 | |||||||
1) | As of January 1, 2015, the goodwill amount related to the reporting unit Active Safety Systems was allocated to the Electronics segment, shown in the table above. |
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Schedule of Change in Balance Sheet Position of Restructuring Reserves | First quarter of 2015 | ||||||||||||||||||||||||
The employee-related restructuring provisions and cash payments in the first quarter of 2015 mainly related to headcount reductions in high-cost countries in Europe. The changes in the employee-related reserves were charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2014 to March 31, 2015. | |||||||||||||||||||||||||
December 31, | Provision/ | Provision/ | Cash | Translation | March 31, | ||||||||||||||||||||
2014 | Charge | Reversal | payments | difference | 2015 | ||||||||||||||||||||
Restructuring employee-related | $ | 79.6 | $ | 35.5 | $ | (0.9 | ) | $ | (25.9 | ) | $ | (9.0 | ) | $ | 79.3 | ||||||||||
Other | 0.2 | 0.1 | — | (0.3 | ) | — | — | ||||||||||||||||||
Total reserve | $ | 79.8 | $ | 35.6 | $ | (0.9 | ) | $ | (26.2 | ) | $ | (9.0 | ) | $ | 79.3 | ||||||||||
2014 | |||||||||||||||||||||||||
In 2014, the employee-related restructuring provisions and cash payments mainly related to headcount reductions in high-cost countries in Europe. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 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 |
ProductRelated_Liabilities_Tab
Product-Related Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Change in Balance Sheet Position of Product-Related Liabilities | The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions for the three months ended March 31, 2015 mainly relate to warranty related issues. The cash paid for the three months ended March 31, 2015 mainly relate to warranty related issues. The provisions and cash paid for the three months ended March 31, 2014 mainly related to warranty related issues. | ||||||||
Three months ended | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Reserve at beginning of the period | $ | 51.3 | $ | 36.4 | |||||
Change in reserve | 1.8 | 7.3 | |||||||
Cash payments | (4.5 | ) | (2.7 | ) | |||||
Translation difference | (1.4 | ) | (0.2 | ) | |||||
Reserve at end of the period | $ | 47.2 | $ | 40.8 |
Retirement_Plans_Tables
Retirement Plans (Tables) (Pension Plans, Defined Benefit) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Pension Plans, Defined Benefit | |||||||||
Schedule of Components of Total Net Periodic Benefit Cost | The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: | ||||||||
Three months ended | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Service cost | $ | 5.8 | $ | 5.3 | |||||
Interest cost | 5.3 | 5.3 | |||||||
Expected return on plan assets | (5.3 | ) | (5.0 | ) | |||||
Amortization prior service credit | (0.2 | ) | (0.2 | ) | |||||
Amortization of actuarial loss | 2.5 | 0.7 | |||||||
Net Periodic Benefit Cost | $ | 8.1 | $ | 6.1 |
Controlling_and_NonControlling1
Controlling and Non-Controlling Interest (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Schedule of Controlling and Non-Controlling Interest | |||||||||||||||||||||||||
Three Months ended | |||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||||||
Equity attributable to | Equity attributable to | ||||||||||||||||||||||||
Controlling | Non- | Total | Controlling | Non- | Total | ||||||||||||||||||||
interest | controlling | interest | controlling | ||||||||||||||||||||||
interest | interest | ||||||||||||||||||||||||
Balance at beginning of period | $ | 3,427.10 | $ | 15 | $ | 3,442.10 | $ | 3,981.30 | $ | 19.1 | $ | 4,000.40 | |||||||||||||
Total Comprehensive Income: | |||||||||||||||||||||||||
Net income | 35.7 | 0 | 35.7 | 130.3 | 0.8 | 131.1 | |||||||||||||||||||
Foreign currency translation | (110.8 | ) | (0.0 | ) | (110.8 | ) | (1.2 | ) | (0.4 | ) | (1.6 | ) | |||||||||||||
Defined benefit pension plan | 1.5 | — | 1.5 | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Total Comprehensive Income | (73.6 | ) | 0 | (73.6 | ) | 129 | 0.4 | 129.4 | |||||||||||||||||
Common Stock incentives | 10.9 | — | 10.9 | 16.3 | — | 16.3 | |||||||||||||||||||
Cash dividends declared | (49.4 | ) | — | (49.4 | ) | (48.7 | ) | — | (48.7 | ) | |||||||||||||||
Repurchased shares | (104.4 | ) | — | (104.4 | ) | (94.4 | ) | — | (94.4 | ) | |||||||||||||||
Dividends paid to non-controlling interests on subsidiary shares | — | — | — | — | (3.1 | ) | (3.1 | ) | |||||||||||||||||
Balance at end of period | $ | 3,210.60 | $ | 15 | $ | 3,225.60 | $ | 3,983.50 | $ | 16.4 | $ | 3,999.90 |
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Weighted Average Shares Used in Earnings Per Share Calculation | Actual weighted average shares used in calculating earnings per share were: | ||||||||
(In millions) | Three months ended | ||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Weighted average shares basic | 88.4 | 94 | |||||||
Effect of dilutive securities: - stock options/share awards | 0.2 | 0.3 | |||||||
Weighted average shares diluted | 88.6 | 94.3 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Information Sales Including Intersegment Sales | |||||||||
Three months ended | |||||||||
Net sales, including Intersegment Sales | March 31, | March 31, | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 1,830.40 | $ | 1,951.50 | |||||
Electronics | 351.2 | 354.8 | |||||||
Total segment sales | $ | 2,181.60 | $ | 2,306.30 | |||||
Corporate and other | 4.2 | 4 | |||||||
Intersegment sales | (11.7 | ) | (14.5 | ) | |||||
Total net sales | $ | 2,174.10 | $ | 2,295.80 | |||||
Segment Information Income Before Income Taxes | Three months ended | ||||||||
Income before Income Taxes | March 31, | 31-Mar | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 63.2 | $ | 155.8 | |||||
Electronics | 9 | 18.7 | |||||||
Segment operating income | $ | 72.2 | $ | 174.5 | |||||
Corporate and other | 7.8 | 17.2 | |||||||
Interest and other non-operating expenses, net | (16.8 | ) | (9.1 | ) | |||||
Income from equity method investments | 1.3 | 1.7 | |||||||
Income before income taxes | $ | 64.5 | $ | 184.3 | |||||
Segment Information Capital Expenditures | Three months ended | ||||||||
Capital Expenditures | March 31, | 31-Mar | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 121.2 | $ | 80.4 | |||||
Electronics | 11.6 | 12.5 | |||||||
Corporate and other | 2 | 0.4 | |||||||
Total capital expenditures | $ | 134.8 | $ | 93.3 | |||||
Segment Information Depreciation and Amortization | |||||||||
Three months ended | |||||||||
Depreciation and Amortization | March 31, | March 31 | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 61.8 | $ | 61.9 | |||||
Electronics | 10.7 | 10.4 | |||||||
Corporate and other | 1.2 | 1.5 | |||||||
Total depreciation and amortization | $ | 73.7 | $ | 73.8 | |||||
Segment Information Segment Assets | As of | ||||||||
Segment Assets | March 31, | December 31 | |||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Passive Safety | $ | 5,778.90 | $ | 5,782.30 | |||||
Electronics | 745.9 | 713.9 | |||||||
Segment assets | $ | 6,524.80 | $ | 6,496.20 | |||||
Corporate and other1) | 801.7 | 946.7 | |||||||
Total assets | $ | 7,326.50 | $ | 7,442.90 | |||||
1) | Corporate and other assets mainly consists of cash and cash equivalents, income taxes and equity method investments. |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Nominal volume | $288.70 | $459.10 | ||
Other current assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative asset | 0.1 | 1.3 | ||
Other current liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liability | 1.5 | 0.4 | ||
Less Than Six Months | Foreign Exchange Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Nominal volume | 288.7 | [1] | 459.1 | [2] |
Less Than Six Months | Foreign Exchange Swaps | Other current assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative asset | 0.1 | [3] | 1.3 | [4] |
Less Than Six Months | Foreign Exchange Swaps | Other current liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative liability | $1.50 | [5] | $0.40 | [6] |
[1] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $230.4 million. | |||
[2] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. | |||
[3] | Net amount after deducting for offsetting swaps under ISDA agreements is $0.1 million. | |||
[4] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 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 $0.4 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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $230.40 | $390.90 |
Derivative asset, amount after offsetting swaps | 0.1 | 1.3 |
Derivative liability, amount after offsetting swaps | $1.50 | $0.40 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
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 | |
Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain in other Financial Items, net | ($2,300,000) | $1,600,000 |
Fair_Value_of_Debt_Detail
Fair Value of Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | $1,511 | [1] | $1,521.20 | [1] |
Long-term debt, fair value | 1,625.80 | 1,610.30 | ||
Short-term debt | 124.3 | [1] | 79.6 | [1] |
Short-term debt, fair value | 124.3 | 79.6 | ||
U.S. Private Placement - Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | 1,423.50 | [1] | 1,424.20 | [1] |
Long-term debt, fair value | 1,535.30 | 1,510.20 | ||
Medium-term Notes | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | 75.4 | [1] | 83.2 | [1] |
Long-term debt, fair value | 78.4 | 86.3 | ||
Other Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Long-term debt | 12.1 | [1] | 13.8 | [1] |
Long-term debt, fair value | 12.1 | 13.8 | ||
Overdrafts and Other Short-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Short-term debt | 105.7 | [1] | 57.8 | [1] |
Short-term debt, fair value | 105.7 | 57.8 | ||
Short-Term Portion of Long-Term Debt | ||||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | ||||
Short-term debt | 18.6 | [1] | 21.8 | [1] |
Short-term debt, fair value | $18.60 | $21.80 | ||
[1] | Debt as reported in balance sheet. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes [Line Items] | ||
Effective income tax rate | 44.60% | 28.90% |
Effective income tax rate reconciliation for adjustments to prior years arising from tax audits | 10.10% | |
Negative impact on income before income tax | $77 | |
Tax benefit generated from OEM settlements | 21 | |
Effective income tax rate reconciliation from settlements | 3.60% | |
Net increase to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years | 2.9 | |
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 27.8 | |
Unrecognized tax benefits payable, current | 6.8 | |
Unrecognized tax benefits payable, non-current | 21 | |
UnrecognizedTaxBenefitsPeriodIncreaseDecrease | $3.50 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $302.70 | $312.20 |
Work in progress | 236.3 | 240.6 |
Finished products | 193.6 | 206 |
Inventories | 732.6 | 758.8 |
Inventory valuation reserve | -79.9 | -83.3 |
Total inventories, net of reserve | $652.70 | $675.50 |
Summary_of_Goodwill_Detail
Summary of Goodwill (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | $1,594 | |||
Balance January 1, 2015 after goodwill reallocation | 1,594 | |||
Effect of currency translation | -10.4 | |||
Goodwill, Ending balance | 1,583.60 | |||
Passive Safety | ||||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | 1,586.20 | |||
Allocation of goodwill due to change in segment reporting | -185.7 | |||
Balance January 1, 2015 after goodwill reallocation | 1,400.50 | |||
Effect of currency translation | -10.4 | |||
Goodwill, Ending balance | 1,390.10 | |||
Active Safety System | ||||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | 7.8 | [1] | ||
Goodwill, Ending balance | 7.8 | [1] | ||
Electronics | ||||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | 7.8 | [1] | ||
Allocation of goodwill due to change in segment reporting | 185.7 | [1] | ||
Balance January 1, 2015 after goodwill reallocation | 193.5 | [1] | ||
Goodwill, Ending balance | $193.50 | [1] | ||
[1] | As of January 1, 2015, the goodwill amount related to the reporting unit Active Safety Systems was allocated to the Electronics segment, shown in the table above. |
Schedule_of_Changes_in_Balance
Schedule of Changes in Balance Sheet Position of Restructuring Reserves (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, beginning balance | $79.80 | $94.20 |
Provision/ Charge | 35.6 | 42.8 |
Provision/ Reversal | -0.9 | -2.3 |
Cash payments | -26.2 | -44.5 |
Translation difference | -9 | -10.4 |
Restructuring reserve, ending balance | 79.3 | 79.8 |
Restructuring employee-related | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, beginning balance | 79.6 | 93.9 |
Provision/ Charge | 35.5 | 42.6 |
Provision/ Reversal | -0.9 | -2.3 |
Cash payments | -25.9 | -44.2 |
Translation difference | -9 | -10.4 |
Restructuring reserve, ending balance | 79.3 | 79.6 |
Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, beginning balance | 0.2 | 0.3 |
Provision/ Charge | 0.1 | 0.2 |
Provision/ Reversal | 0 | |
Cash payments | -0.3 | -0.3 |
Translation difference | 0 | |
Restructuring reserve, ending balance | $0.20 |
Summary_of_Change_in_Balance_S
Summary of Change in Balance Sheet Position of Product-Related Liabilities (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Product Liability Contingency [Line Items] | ||
Reserve at beginning of the period | $51.30 | $36.40 |
Change in reserve | 1.8 | 7.3 |
Cash payments | -4.5 | -2.7 |
Translation difference | -1.4 | -0.2 |
Reserve at end of the period | $47.20 | $40.80 |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (Pension Plans, Defined Benefit, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $5.80 | $5.30 |
Interest cost | 5.3 | 5.3 |
Expected return on plan assets | -5.3 | -5 |
Amortization prior service credit | -0.2 | -0.2 |
Amortization of actuarial loss | 2.5 | 0.7 |
Net Periodic Benefit Cost | $8.10 | $6.10 |
Schedule_of_NonControlling_Int
Schedule of Non-Controlling Interest (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Noncontrolling Interest [Line Items] | ||
Balance at beginning of period | $3,442.10 | $4,000.40 |
Total Comprehensive Income: | ||
Net income | 35.7 | 131.1 |
Foreign currency translation | -110.8 | -1.6 |
Defined benefit pension plan | 1.5 | -0.1 |
Total Comprehensive Income | -73.6 | 129.4 |
Common Stock incentives | 10.9 | 16.3 |
Cash dividends declared | -49.4 | -48.7 |
Repurchased shares | -104.4 | -94.4 |
Dividends paid to non-controlling interests on subsidiary shares | -3.1 | |
Balance at end of period | 3,225.60 | 3,999.90 |
Controlling | ||
Noncontrolling Interest [Line Items] | ||
Balance at beginning of period | 3,427.10 | 3,981.30 |
Total Comprehensive Income: | ||
Net income | 35.7 | 130.3 |
Foreign currency translation | -110.8 | -1.2 |
Defined benefit pension plan | 1.5 | -0.1 |
Total Comprehensive Income | -73.6 | 129 |
Common Stock incentives | 10.9 | 16.3 |
Cash dividends declared | -49.4 | -48.7 |
Repurchased shares | -104.4 | -94.4 |
Balance at end of period | 3,210.60 | 3,983.50 |
Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Balance at beginning of period | 15 | 19.1 |
Total Comprehensive Income: | ||
Net income | 0 | 0.8 |
Foreign currency translation | 0 | -0.4 |
Total Comprehensive Income | 0 | 0.4 |
Dividends paid to non-controlling interests on subsidiary shares | -3.1 | |
Balance at end of period | $15 | $16.40 |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Jun. 06, 2012 | Mar. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2015 |
USD ($) | Defendant | Brazilian Subsidiaries | Brazilian Subsidiaries | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | United States District Court for Eastern District of Michigan | Ontario and Quebec Superior Court | |
USD ($) | BRL | USD ($) | USD ($) | Direct purchaser settlement class | Direct purchaser settlement class | Auto dealer settlement class | End-payor settlement class | Defendant | |||
Defendant | Defendant | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Loss Contingencies [Line Items] | |||||||||||
Aggregate assessment for all alleged violations | $17.30 | 55 | |||||||||
Cash paid for litigation settlements | 14.5 | ||||||||||
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 | 77 | 65 | 40 | 6 | 19 | ||||||
Settlement agreements amount | 35.5 | ||||||||||
Total Settlement agreement | $81 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share Basic And Diluted [Line Items] | ||
Potentially dilutive shares | 0.2 | |
Shares from treasury stock utilized by Stock Incentive Plan | 0.2 | 0.3 |
Schedule_of_Actual_Weighted_Av
Schedule of Actual Weighted Average Shares Used in Calculating Earnings Per Share (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ||
Weighted average shares basic | 88.4 | 94 |
Effect of dilutive securities: | ||
stock options/share awards | 0.2 | 0.3 |
Weighted average shares diluted | 88.6 | 94.3 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Segment_Information_Sales_Incl
Segment Information Sales Including Intersegment Sales (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | $2,174.10 | $2,295.80 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 2,181.60 | 2,306.30 |
Operating Segments | Passive Safety | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 1,830.40 | 1,951.50 |
Operating Segments | Electronics | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 351.2 | 354.8 |
Corporate and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 4.2 | 4 |
Intersegment Eliminations | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | ($11.70) | ($14.50) |
Segment_Information_Income_Bef
Segment Information Income Before Income Taxes (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment operating income | $80 | $191.70 |
Interest and other non-operating expenses, net | -16.8 | -9.1 |
Income from equity method investments | 1.3 | 1.7 |
Income before income taxes | 64.5 | 184.3 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment operating income | 72.2 | 174.5 |
Operating Segments | Passive Safety | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment operating income | 63.2 | 155.8 |
Operating Segments | Electronics | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment operating income | 9 | 18.7 |
Corporate and other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment operating income | $7.80 | $17.20 |
Segment_Information_Capital_Ex
Segment Information Capital Expenditures (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | $134.80 | $93.30 |
Corporate and other | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | 2 | 0.4 |
Passive Safety | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | 121.2 | 80.4 |
Electronics | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Capital expenditures | $11.60 | $12.50 |
Segment_Information_Depreciati
Segment Information Depreciation and Amortization (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciliation of Depreciation by Segment [Line Items] | ||
Depreciation and amortization | $73.70 | $73.80 |
Corporate and other | ||
Reconciliation of Depreciation by Segment [Line Items] | ||
Depreciation and amortization | 1.2 | 1.5 |
Passive Safety | ||
Reconciliation of Depreciation by Segment [Line Items] | ||
Depreciation and amortization | 61.8 | 61.9 |
Electronics | ||
Reconciliation of Depreciation by Segment [Line Items] | ||
Depreciation and amortization | $10.70 | $10.40 |
Segment_Information_Segment_As
Segment Information Segment Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $7,326.50 | $7,442.90 | ||
Operating Segments | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 6,524.80 | 6,496.20 | ||
Operating Segments | Passive Safety | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 5,778.90 | 5,782.30 | ||
Operating Segments | Electronics | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 745.9 | 713.9 | ||
Corporate and other | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $801.70 | [1] | $946.70 | [1] |
[1] | Corporate and other assets mainly consists of cash and cash equivalents, income taxes and equity method investments. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Event [Line Items] | |
Reportable events subsequent | There were no reportable events subsequent to March 31, 2015. |