Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 15, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ALV | ||
Entity Registrant Name | AUTOLIV INC | ||
Entity Central Index Key | 1,034,670 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 88,113,610 | ||
Entity Public Float | $ 10,280 |
Consolidated Statements of Net
Consolidated Statements of Net Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net sales | $ 9,169.6 | $ 9,240.5 | $ 8,803.4 | |
Cost of sales | (7,325.5) | (7,436.7) | (7,098.8) | |
Gross profit | 1,844.1 | 1,803.8 | 1,704.6 | |
Selling, general and administrative expenses | (411.5) | (414.9) | (389.9) | |
Research, development and engineering expenses, net | (523.8) | (535.6) | (489.3) | |
Amortization of intangibles | (19.6) | (16) | (20.4) | |
Other expense, net | (161.4) | (114.7) | (43.6) | |
Operating income | 727.8 | 722.6 | 761.4 | |
Income from equity method investments | 4.7 | 6.9 | 7.3 | |
Interest income | 2.7 | 4.8 | 3.9 | |
Interest expense | (65.1) | (63.4) | (32.9) | |
Other non-operating items, net | 5.6 | (3.9) | (5.7) | |
Income before income taxes | 675.7 | 667 | 734 | |
Income tax expense | (218.2) | (198) | (244.1) | |
Net income | [1] | 457.5 | 469 | 489.9 |
Less: Net income attributable to non-controlling interest | 0.7 | 1.2 | 4.1 | |
Net income attributable to controlling interest | $ 456.8 | $ 467.8 | $ 485.8 | |
Earnings per common share | ||||
- basic | $ 5.18 | $ 5.08 | $ 5.09 | |
- assuming dilution | $ 5.17 | $ 5.06 | $ 5.07 | |
Weighted average number of shares | ||||
- basic | 88.2 | 92.1 | 95.5 | |
- assuming dilution | 88.4 | 92.4 | 95.9 | |
Cash dividend per share-declared | $ 2.24 | $ 2.14 | $ 2.02 | |
Cash dividend per share-paid | $ 2.22 | $ 2.12 | $ 2 | |
[1] | See Note 13 for further details - includes tax effects where applicable. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net income | [1] | $ 457.5 | $ 469 | $ 489.9 |
Other comprehensive (loss) income before tax: | ||||
Change in cumulative translation adjustment | (191.5) | (204.9) | (17.4) | |
Net change in cash flow hedges | 0.2 | |||
Net change in unrealized components of defined benefit plans | 49.3 | (71) | 97.1 | |
Other comprehensive (loss) income, before tax | (142) | (275.9) | 79.7 | |
Benefit (cost) for taxes related to defined benefit plans | (14.3) | 22 | (38.3) | |
Other comprehensive (loss) income, net of tax | (156.3) | (253.9) | 41.4 | |
Comprehensive income | [1] | 301.2 | 215.1 | 531.3 |
Less: Comprehensive income attributable to non-controlling interest | 0.1 | 0.8 | 4.5 | |
Comprehensive income attributable to controlling interest | $ 301.1 | $ 214.3 | $ 526.8 | |
[1] | See Note 13 for further details - includes tax effects where applicable. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and cash equivalents | $ 1,333.5 | $ 1,529 | |
Receivables, net | 1,787.6 | 1,706.3 | |
Inventories, net | 711.4 | 675.5 | |
Income tax receivables | 33.4 | 54.6 | |
Prepaid expenses | 99.6 | 95.4 | |
Other current assets | 72.8 | 75.4 | |
Total current assets | 4,038.3 | 4,136.2 | |
Property, plant and equipment, net | 1,437.1 | 1,390.2 | |
Investments and other non-current assets | 255.8 | 255.3 | |
Goodwill | 1,666.3 | 1,594 | |
Intangible assets, net | 128 | 67.2 | |
Total assets | 7,525.5 | 7,442.9 | |
Liabilities and equity | |||
Short-term debt | [1] | 39.6 | 79.6 |
Accounts payable | 1,169.6 | 1,091.5 | |
Accrued expenses | 755.6 | 720.1 | |
Income tax payable | 71.1 | 69.1 | |
Other current liabilities | 190.5 | 178.3 | |
Total current liabilities | 2,226.4 | 2,138.6 | |
Long-term debt | [1] | 1,499.4 | 1,521.2 |
Pension liability | 197 | 232.5 | |
Other non-current liabilities | 134.6 | 108.5 | |
Total non-current liabilities | $ 1,831 | $ 1,862.2 | |
Commitments and contingencies | |||
Common stock | [2] | $ 102.8 | $ 102.8 |
Additional paid-in capital | 1,329.3 | 1,329.3 | |
Retained earnings | 3,499.4 | 3,240 | |
Accumulated other comprehensive loss | [3] | (408.5) | (253) |
Treasury stock (14.7 and 14.1 shares, respectively) | (1,067.4) | (992) | |
Total controlling interests' equity | 3,455.6 | 3,427.1 | |
Non-controlling interest | 12.5 | 15 | |
Total equity | [4] | 3,468.1 | 3,442.1 |
Total liabilities and equity | $ 7,525.5 | $ 7,442.9 | |
[1] | Debt as reported in balance sheet. | ||
[2] | Number of shares: 350 million authorized, 102.8 million issued for both years, and 88.1 and 88.7 million outstanding, net of treasury shares, for 2015 and 2014, 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) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Treasury stock, Shares | 14,700,000 | 14,100,000 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 102,800,000 | 102,800,000 |
Common stock, shares outstanding | 88,100,000 | 88,700,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating activities | ||||
Net income | [1] | $ 457.5 | $ 469 | $ 489.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 319.1 | 305.4 | 286 | |
Deferred income taxes | (24.1) | (0.8) | 35.2 | |
Undistributed income from equity method investments, net of dividends | (0.4) | (3.4) | (2.7) | |
Net change in: | ||||
Receivables and other assets, gross | (173) | (143.1) | (245.5) | |
Inventories, gross | (92.7) | (69.8) | (63.6) | |
Accounts payable and accrued expenses | 230.4 | 106.9 | 299.7 | |
Income taxes | 9.2 | 3.3 | 28.2 | |
Other, net | 24.5 | 45.2 | 10.7 | |
Net cash provided by operating activities | 750.5 | 712.7 | 837.9 | |
Investing activities | ||||
Expenditures for property, plant and equipment | (465.8) | (456) | (385.6) | |
Proceeds from sale of property, plant and equipment | 16.2 | 2.6 | 6.3 | |
Acquisition of intangible assets | (24.9) | (1.4) | (2) | |
Acquisition of businesses and interest in affiliates, net of cash acquired | (103.1) | |||
Net proceeds from divestitures | 2.4 | |||
Other | (13.5) | (0.6) | 3.9 | |
Net cash used in investing activities | (591.1) | (453) | (377.4) | |
Financing activities | ||||
Net (decrease) increase in short-term debt | (29) | (252.7) | 272.8 | |
Issuance of long-term debt | 1,263 | |||
Repayments and other changes in long-term debt | (12.2) | (1.2) | (277.3) | |
Dividends paid to non-controlling interest | (4.9) | (3.3) | ||
Dividends paid | (195.7) | (194.9) | (191) | |
Shares repurchased | (104.4) | (616) | (147.9) | |
Common stock options exercised | 20.3 | 32.5 | 27 | |
Capital contribution from non-controlling interest | 1.6 | 0.4 | ||
Other, net | 0.5 | 0.5 | 1 | |
Net cash provided by (used in) financing activities | (318.9) | 226.3 | (318.3) | |
Effect of exchange rate changes on cash and cash equivalents | (36) | (75.3) | (1.6) | |
(Decrease) / increase in cash and cash equivalents | (195.5) | 410.7 | 140.6 | |
Cash and cash equivalents at beginning of year | 1,529 | 1,118.3 | 977.7 | |
Cash and cash equivalents at end of year | $ 1,333.5 | $ 1,529 | $ 1,118.3 | |
[1] | See Note 13 for further details - includes tax effects where applicable. |
Consolidated Statements of Tota
Consolidated Statements of Total Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | Total parent shareholders' equity | Non-controlling interest | |
Balance at Dec. 31, 2012 | $ 3,776.1 | [1] | $ 102.8 | $ 1,329.3 | $ 2,672.5 | $ (40.5) | $ (305.5) | $ 3,758.6 | $ 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 | 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 | 4,000.4 | [1] | $ 102.8 | 1,329.3 | 2,965.9 | 0.5 | (417.2) | 3,981.3 | 19.1 |
Balance, shares at Dec. 31, 2013 | 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 | 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 | $ 3,442.1 | [1] | $ 102.8 | 1,329.3 | 3,240 | (253) | (992) | 3,427.1 | 15 |
Balance, shares at Dec. 31, 2014 | 102.8 | 102.8 | |||||||
Comprehensive Income: | |||||||||
Net income | $ 457.5 | [1] | 456.8 | 456.8 | 0.7 | ||||
Net change in cash flow hedges | 0.2 | [1] | 0.2 | 0.2 | |||||
Foreign currency translation | (191.5) | [1] | (190.9) | (190.9) | (0.6) | ||||
Pension liability | 35 | [1] | 35 | 35 | |||||
Comprehensive income | 301.2 | [1] | 301.1 | 0.1 | |||||
Common stock incentives | 29 | [1] | 29 | 29 | |||||
Cash dividends declared | (197.2) | [1] | (197.2) | (197.2) | |||||
Repurchased shares | (104.4) | [1] | (104.4) | (104.4) | |||||
Investment in subsidiary by non-controlling interest | 1.6 | [1] | 1.6 | ||||||
Purchase of subsidiary shares from non-controlling interest | (4.2) | [1] | (0.2) | 0.2 | 0 | (4.2) | |||
Balance at Dec. 31, 2015 | $ 3,468.1 | [1] | $ 102.8 | $ 1,329.3 | $ 3,499.4 | $ (408.5) | $ (1,067.4) | $ 3,455.6 | $ 12.5 |
Balance, shares at Dec. 31, 2015 | 102.8 | 102.8 | |||||||
[1] | See Note 13 for further details - includes tax effects where applicable. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, passive safety electronics and active safety systems such as night vision, radar, camera vision systems and position related technologies. Autoliv is also a supplier of anti-whiplash systems, pedestrian protection systems and child seats. 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 the 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. 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 fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and classified as a liability 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 or 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 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 awards under the Stock Incentive Plan, including Restricted Stock Units (RSUs) and stock options, over the respective 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 benefits 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. CASH EQUIVALENTS The Company considers all highly liquid investment instruments purchased with an original 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. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company uses derivative financial instruments, primarily forwards, options and swaps to reduce the effects of fluctuations in foreign exchange rates, interest rates and the resulting variability of the Company’s operating results. On the date that a derivative contract is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge) or (3) an economic hedge not applying special hedge accounting pursuant to ASC 815. 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. All derivatives are recognized in the consolidated financial statements at fair value. 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. For further details on the Company’s financial instruments, see Notes 3 and 12. 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. Generally, the lowest level of cash flows for impairment assessment is customer platform level. 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, 2015 and 2014, the Company had goodwill of approximately $1.7 billion and $1.6 billion, respectively. Of the goodwill amount, $1.4 billion and $0.3 billion are associated with the Passive Safety and Electronics segments, respectively. Approximately $1.2 billion of the Passive Safety goodwill is 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. 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 2013 through 2015. 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 restructuring 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 benefits 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 $(11.0) million in 2015, $(3.8) million in 2014 and $(26.3) million in 2013, 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 November 2015, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which simplifies the presentation of deferred income taxes. The amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this Update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company plans to early adopt this standard prospectively in its interim reporting for the period ended March 31, 2016. In September 2015, the FASB, issued the ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (Topic 805), which requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires the acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company early adopted this standard as of December 31, 2015. The adoption of this standard had no material impact for any periods presented. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede nearly all existing revenue recognition guidance under U.S. 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 was originally to be effective for public entities for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), that defers the effective date of ASU 2014-09 for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently in the 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 July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, this update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company plans to adopt this standard as of January 1, 2017. The adoption of this standard is not expected to have a material impact for any periods presented. In April 2015, the FASB, issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. For public business entities, the final guidance will be effective for fiscal years beginning after December 15, 2015; however, early adoption (including in interim periods) is permitted. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. An entity is also required in the year of adoption to provide certain disclosures about the change in accounting principle, including the nature of and reason for the change, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The Company plans to adopt this standard beginning January 1, 2016. The adoption of this standard is not expected to have a material impact for any periods presented. In August 2014, the FASB issued ASU 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, which 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 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, 2015 | |
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. M/A-COM Automotive Solutions Business On August 17, 2015, Autoliv completed the acquisition of the “Automotive Solutions” business of M/A-COM Technology Solutions Holdings, Inc. (MACOM) headquartered in Lowell, Massachusetts, which is a carve-out of the automotive business of MACOM, through the acquisition of all of the shares of M/A-COM Auto Solutions, Inc., a MACOM subsidiary, for approximately $99 million in cash (as adjusted), $15 million of deferred purchase price payable over two years, plus up to an additional $30 million in cash based on the achievement of revenue based earn-out targets through September 30, 2019. The transaction has been accounted for as a business combination. The “Automotive Solutions” business of MACOM is a supplier of integrated, embedded Global Positioning System (GPS) modules to the automotive industry. The business includes technical, commercial and manufacturing support employees focused on the design, development and production of GPS modules. Other technologies and intellectual property acquired in the transaction are various Radio Frequency (RF) and antenna products (hardware and software) and Electronic Horizon, which is an advanced driver assistance system connecting navigation and GPS data to improve safety, fuel efficiency and reduce emissions. The acquisition expands the Company’s capability in the Active Safety market and provides additional building blocks to its portfolio in automated driving. The operating results of the MACOM “Automotive Solutions” business have been included in the Consolidated Statements of Net Income since the date of the acquisition. The acquired business is being reported in the Electronics reportable segment. From the date of the acquisition through December 31, 2015, the MACOM “Automotive Solutions” business reported net sales and operating income of $30.1 million and $0.7 million, respectively. Operating income from the date of the acquisition through December 31, 2015, included $1.7 million of purchase accounting inventory fair value step-up adjustments in cost of sales upon the sale of acquired inventory. The total purchase accounting inventory fair value step-up adjustments included in the balance sheet at the acquisition date was $1.7 million. The acquisition related costs were immaterial and were accounted for as Selling, general and administrative expenses in the Consolidated Statement of Net Income. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented. The fair value of acquired accounts receivable, net was determined to be $11.5 million as of the acquisition date. The gross contractual amounts receivable of $12.2 million included $0.7 million that is not expected to be collected. The acquisition date fair value of the total consideration transferred is presented in the table below: Acquisition consideration August 17, 2015 Cash $ 98.9 Earn-out 25.0 Deferred purchase consideration 14.6 Total consideration transferred $ 138.5 The fair value of the earn-out of $25 million is based on a range of estimated probability of revenue scenarios. The fair value of the earn-out and deferred purchase consideration were determined using the discounted cash flow method of the income approach. The estimated undiscounted outcomes are in the range of $18-30 million. The following table summarizes the recognized fair values of identifiable assets acquired and liabilities assumed as of the acquisition date: Amounts recognized as of acquisition date August 17, 2015 Assets: Receivables $ 11.5 Inventories 6.0 Other current assets 0.1 Property, plant and equipment 0.1 Intangibles 44.2 Goodwill 84.5 Total assets $ 146.4 Liabilities: Accounts payable $ 7.6 Accrued expenses 0.3 Total liabilities $ 7.9 Net assets acquired $ 138.5 Acquired Intangibles consist of the fair value of a customer contract of $37.2 million and certain technology and intellectual property of $7.0 million. The remaining useful life of the customer contract is 4 years and will be amortized on an accelerated method that corresponds with the relative value of the expected cash flows during the remaining life of the contract. The technology and intellectual property will be amortized straight-line over 7.5 years. The recognized goodwill of $84.5 million reflects expected synergies from combining the Active Safety operations of the Company and the acquired “Automotive Solutions” business from MACOM and intangible assets that do not qualify for separate recognition. The goodwill is expected to be fully deductible for tax purposes and has been assigned to the Electronics segment. No significant business combinations were made in 2014. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
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 fair value of the contingent consideration relating to the MACOM acquisition is re-measured on a recurring basis (See Note 2). 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, 2015 were foreign exchange swaps and forward contracts. All swaps principally match the terms and maturity of the underlying debt and no swaps have a maturity beyond six months. The forward contracts are designated as cash flow hedges of certain external purchases. 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 OCI and reclassified into the Consolidated Statements of Net Income when the hedge transaction affects net earnings. The Company uses the forward rate with respect to the measurement of changes in fair value of cash flow hedges when revaluing foreign exchange forward contracts. There were no material reclassifications from OCI to the Consolidated Statement of Net Income during 2015. Any ineffectiveness in 2015 was not material. There were no derivatives designated as hedging instruments outstanding as of December 31, 2014. 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. Instruments 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 of the fair value hierarchy and there have been no transfers between the levels during this or comparable periods. The tables on the next page present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 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 Consolidated Balance Sheets at December 31, 2015 and December 31, 2014 have been presented on a gross basis. The amounts subject to netting agreements that the Company choose not to offset are presented later in this note. 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. DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS The derivatives designated as hedging instruments outstanding at December 31, 2015 were Foreign exchange forward contracts, classified as cash flow hedges. For 2015, the cumulative gains and losses recognized in OCI on the cash flow hedges were a gain of $0.6 million (net of taxes). For 2015, the gains and losses reclassified from OCI and recognized in the Consolidated Statement of Net Income were a gain of $0.4 million (net of taxes). Gains and losses recognized and remaining in OCI as of December 31, 2015 are a gain of $0.2 million (net of taxes). Any ineffectiveness in 2015 was not material. During 2014 there were no derivative instruments designated as hedging instruments and therefore there were no gains or losses recognized in OCI or in the Consolidated Statement of Net Income. DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Derivatives, not designated as hedging instruments, relate to economic hedges and are market to market with all amounts recognized in the Consolidated Statements of Net Income. The derivatives not designated as hedging instruments outstanding at December 31, 2015 were foreign exchange swaps. For 2015 the gains and losses recognized in other non-operating items, net were a loss of $3.3 million for derivative instruments not designated as hedging instruments. For 2014, the Company recognized a gain of $2.0 million in other non-operating items, net for derivative instruments not designated as hedging instruments. For 2015 and 2014, the gains and losses recognized as interest expense were immaterial. DECEMBER 31, 2015 DECEMBER 31, 2014 Fair Value Measurements Fair Value Measurements DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS 1) Nominal Derivative asset (Other current/ Derivative liability (Other current / Nominal Derivative asset (Other current / non-current Derivative liability (Other current / Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 58.0 $ 0.2 $ 0.2 $ — $ — $ — Foreign exchange forward contracts, less than 2 years (cash flow hedge) 11.3 0.0 0.1 — — — TOTAL $ 69.3 $ 0.2 $ 0.3 $ — $ — $ — DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign exchange swaps, less than 6 months $ 482.4 2) $ 2.5 3) $ 5.1 4) $ 459.1 5) $ 1.3 6) $ 0.4 7) TOTAL $ 482.4 $ 2.5 $ 5.1 $ 459.1 $ 1.3 $ 0.4 1) There is no netting since there are no offsetting contracts. 2) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $435.8 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $2.4 million. 4) Net amount after deducting for offsetting swaps under ISDA agreements is $4.9 million. 5) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. 6) Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. 7) Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 million. 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 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. DECEMBER 31, 2015 CARRYING VALUE 1) DECEMBER 31, 2015 FAIR VALUE DECEMBER 31, 2014 CARRYING VALUE 1) DECEMBER 31, 2014 FAIR VALUE LONG-TERM DEBT U.S. Private placement $ 1,421.5 $ 1,472.6 $ 1,424.2 $ 1,510.2 Medium-term notes 77.8 79.6 83.2 86.3 Other long-term debt 0.1 0.1 13.8 13.8 TOTAL $ 1,499.4 $ 1,552.3 $ 1,521.2 $ 1,610.3 SHORT-TERM DEBT Overdrafts and other short-term debt $ 39.4 $ 39.4 $ 57.8 $ 57.8 Short-term portion of long-term debt 0.2 0.2 21.8 21.8 TOTAL $ 39.6 $ 39.6 $ 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 equity method investments. 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 2015 and 2014, the Company did not record any material impairment charges on its long-lived assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | 4. Income Taxes INCOME BEFORE INCOME TAXES 2015 2014 2013 U.S. $ 143.8 $ 59.5 $ 169.4 Non-U.S. 531.9 607.5 564.6 Total $ 675.7 $ 667.0 $ 734.0 PROVISION FOR INCOME TAXES 2015 2014 2013 Current U.S. federal $ 68.9 $ 32.2 $ 42.7 Non-U.S. 169.2 166.2 164.7 U.S. state and local 4.2 0.4 1.6 Deferred U.S. federal (9.3 ) (3.2 ) 11.7 Non-U.S. (13.7 ) 2.9 22.2 U.S. state and local (1.1 ) (0.5 ) 1.2 Total income tax expense $ 218.2 $ 198.0 $ 244.1 EFFECTIVE INCOME TAX RATE 2015 2014 2013 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Foreign tax rate variances (8.1 ) (8.5 ) (8.2 ) Tax credits (4.3 ) (4.9 ) (4.5 ) Change in Valuation Allowances 0.1 0.6 5.3 Current year losses with no benefit 4.1 5.9 4.0 Net operating loss carry-forwards (0.5 ) (0.0 ) (0.1 ) Changes in tax reserves 1.4 (0.1 ) 1.1 Cost of double taxation 2.7 2.1 0.6 Earnings of equity investments (0.2 ) (0.4 ) (0.4 ) Withholding taxes 1.2 0.6 1.0 State taxes, net of federal benefit 0.3 0.0 0.2 Other, net 0.6 (0.6 ) (0.8 ) Effective income tax rate 32.3 % 29.7 % 33.2 % 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, 2015, the Company had net operating loss carryforwards (NOL’s) of approximately $311 million, of which approximately $234 million have no expiration date. The remaining losses expire on various dates through 2029. The Company also has $64 million of U.S. Foreign Tax Credit carry forwards, which begin to expire in 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. 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 20%-30%. The tax rate from quarter to quarter and from year to year is also impacted by the mix of earnings and tax rates in various jurisdictions compared to the same periods or prior years. 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 2009. The Company is undergoing tax audits in the United States, several non-U.S. jurisdictions and several U.S. state jurisdictions, covering multiple years. As of December 31, 2015, 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 December 31, 2014, the Company had recorded $21.4 million for unrecognized tax benefits related to prior years, including $1.6 million of accrued interest and penalties. During 2015, the Company recorded a net increase of $6.9 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current and prior years. The Company had $5.7 million accrued for the payment of interest and penalties as of December 31, 2015. Of the total unrecognized tax benefits of $28.3 million recorded at December 31, 2015, $9.5 million is classified as current income tax payable, and $18.8 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. The following table summarizes the activity related to the Company’s unrecognized tax benefits. UNRECOGNIZED TAX BENEFITS 2015 2014 2013 Unrecognized tax benefits at beginning of year $ 21.5 $ 22.7 $ 14.7 Increases as a result of tax positions taken during a prior period 2.5 0.6 7.2 Decreases as a result of tax positions taken during a prior period (0.1 ) (0.0 ) (0.3 ) Increases as a result of tax positions taken during the current period 5.7 3.1 2.9 Decreases as a result of tax positions taken during the current period 0.0 0.0 0.0 Decreases relating to settlements with taxing authorities (0.7 ) (2.4 ) (0.8 ) Decreases resulting from the lapse of the applicable statute of limitations (2.0 ) (1.2 ) (0.6 ) Translation Difference (1.7 ) (1.3 ) (0.4 ) Total unrecognized tax benefits at end of year $ 25.2 $ 21.5 $ 22.7 The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows. DEFERRED TAXES DECEMBER 31 2015 2014 2013 Assets Provisions $ 90.6 $ 90.6 $ 97.2 Costs capitalized for tax 21.3 12.0 18.5 Property, plant and equipment 15.5 18.9 20.9 Retirement Plans 60.8 73.6 49.9 Tax receivables, principally NOL’s 192.8 166.2 136.6 Deferred tax assets before allowances $ 381.0 $ 361.3 $ 323.1 Valuation allowances (177.7 ) (150.1 ) (115.5 ) Total $ 203.3 $ 211.2 $ 207.6 Liabilities Acquired intangibles $ (18.4 ) $ (22.0 ) $ (25.3 ) Statutory tax allowances (0.6 ) (0.7 ) (1.3 ) Insurance deposit (3.3 ) (5.0 ) (6.4 ) Distribution taxes (29.8 ) (34.0 ) (38.1 ) Other (2.9 ) (2.6 ) (3.0 ) Total $ (55.0 ) $ (64.3 ) $ (74.1 ) Net deferred tax asset $ 148.3 $ 146.9 $ 133.5 The following table summarizes the activity related to the Company’s valuation allowances. VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 2015 2014 2013 Allowances at beginning of year $ 150.1 $ 115.5 $ 44.8 Benefits reserved current year 53.7 55.2 76.1 Benefits recognized current year (5.2 ) (0.7 ) (1.8 ) Write-offs and other changes (0.2 ) (3.0 ) (0.0 ) Translation difference (20.7 ) (16.9 ) (3.6 ) Allowances at end of year $ 177.7 $ 150.1 $ 115.5 U.S. federal income taxes have not been provided on $4.1 billion of undistributed earnings of non-U.S. operations, which are considered to be permanently reinvested. These earnings have been or will be invested to support the growth or other cash requirements of the Company’s non-U.S. business. In addition, the Company does not foresee a need to repatriate these earnings to the U.S. since its U.S. cash requirements are supported by cash generated by its U.S. operations, distributions from foreign entities of earnings that have not been designated as permanently reinvested and existing credit facilities. 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 due to the complexities of the U.S. foreign tax credit regime, it is not practicable to calculate the deferred tax liability if the entire $4.1 billion of earnings were to be distributed to the United States. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables | 5. Receivables DECEMBER 31 2015 2014 2013 Receivables $ 1,793.7 $ 1,713.2 $ 1,692.6 Allowance at beginning of year $ (6.9 ) $ (4.6 ) $ (7.3 ) Reversal of allowance 1.3 0.9 4.1 Addition to allowance (1.9 ) (4.1 ) (2.2 ) Write-off against allowance 0.8 0.6 0.9 Translation difference 0.6 0.3 (0.1 ) Allowance at end of year $ (6.1 ) $ (6.9 ) $ (4.6 ) Total receivables, net of allowance $ 1,787.6 $ 1,706.3 $ 1,688.0 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | 6. Inventories DECEMBER 31 2015 2014 2013 Raw material $ 339.9 $ 312.2 $ 314.8 Work in progress 243.4 240.6 232.9 Finished products 217.9 206.0 201.9 Inventories $ 801.2 $ 758.8 $ 749.6 Inventory reserve at beginning of year $ (83.3 ) $ (87.8 ) $ (83.5 ) Reversal of reserve 4.3 5.1 5.1 Addition to reserve (22.2 ) (10.9 ) (20.8 ) Write-off against reserve 5.0 4.0 10.5 Translation difference 6.4 6.3 0.9 Inventory reserve at end of year $ (89.8 ) $ (83.3 ) $ (87.8 ) Total inventories, net of reserve $ 711.4 $ 675.5 $ 661.8 |
Investments and Other Non-curre
Investments and Other Non-current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Investments and Other Non-current Assets | 7. Investments and Other Non-current Assets As of December 31, 2015, the Company had invested in two 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”. DECEMBER 31 2015 2014 Equity method investments $ 22.9 $ 26.8 Deferred tax assets 141.0 139.0 Income tax receivables 50.9 54.7 Other non-current assets 41.0 34.8 Investments and other non-current assets $ 255.8 $ 255.3 The equity method investments and the respective percentage of ownership are as follows: COUNTRY Ownership % Company name Malaysia 49 % Autoliv-Hirotako Safety Sdn Bhd (parent and subsidiaries) China 30 % Changchun Hongguang-Autoliv Vehicle Safety Systems Co. Ltd. In 2015, EAK SNC Composants pour L’Industrie Automobile, in which the Company owned 49%, was liquidated. The gain in connection with the liquidation was immaterial. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | 8. Property, Plant and Equipment DECEMBER 31 2015 2014 Estimated Land and land improvements $ 106.6 $ 106.0 n/a to 15 Machinery and equipment 3,179.7 3,160.0 3-8 Buildings 765.9 813.2 20-40 Construction in progress 284.6 263.2 n/a Property, plant and equipment $ 4,336.8 $ 4,342.4 Less accumulated depreciation (2,899.7) (2,952.2) Net of depreciation $ 1,437.1 $ 1,390.2 DEPRECIATION INCLUDED IN 2015 2014 2013 Cost of sales $ 268.8 $ 258.7 $ 237.2 Selling, general and administrative expenses 7.3 8.0 8.2 Research, development and engineering expenses, net 23.3 22.7 20.2 Total $ 299.4 $ 289.4 $ 265.6 No significant fixed asset impairments were recognized during 2015, 2014 or 2013. The net book value of machinery and equipment and buildings and land under capital lease contracts recorded as of December 31, 2015 and 2014 were immaterial. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets GOODWILL Total Passive Safety Segment Electronics Carrying amount December 31, 2013 $ 1,610.1 $ 1,602.3 $ 7.8 Translation differences (16.1) (16.1) — Carrying amount December 31, 2014 $ 1,594.0 $ 1,586.2 $ 7.8 Allocation of goodwill due to change in segment reporting as of January 1, 2015 — (185.7) 185.7 Carrying amount January 1, 2015 $ 1,594.0 $ 1,400.5 $ 193.5 Acquisition 84.5 — 84.5 Translation differences (12.2) (12.2) — Carrying amount at end of year $ 1,666.3 $ 1,388.3 $ 278.0 The Company changed its segment reporting effective as of January 1, 2015. Goodwill in the former operating segment Passive Safety Systems has been re-allocated from Passive Safety to Electronics relating to the transfer of Passive Safety Electronics, as shown in the table above. The allocation was made based on the relative fair values determined using a discounted cash flow method. The goodwill recognized in 2015 of $84.5 million is related to the M/A-COM acquisition (see Note 2). AMORTIZABLE INTANGIBLES 2015 2014 Gross carrying amount $ 484.9 $ 394.6 Accumulated amortization (356.9) (327.4) Carrying value $ 128.0 $ 67.2 No significant impairments were recognized during 2015, 2014 or 2013. At December 31, 2015 intangible assets subject to amortization mainly relate to acquired technology and contractual relationships. Of the carrying value of $128 million at December 31, 2015, $83 million was related to the technology asset category and $32 million was related to the contractual relationships asset category. Of the carrying value of $67 million at December 31, 2014, the majority related to acquired technology. Amortization expense related to intangible assets was $19.6 million, $16.0 million and $20.4 million in 2015, 2014 and 2013, respectively. Estimated future amortization expense is (in millions): 2016: $30.9; 2017: $25.7; 2018: $25.1; 2019: $22.0 and 2020: $15.8. |
Restructuring and Other Liabili
Restructuring and Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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 its existing credit facilities. The Company does not expect that the execution of these programs will have an adverse impact on its liquidity position. All restructuring activities relate to the Passive Safety segment. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. 2015 In 2015, 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, 2014 to December 31, 2015. December 31 2014 Provision/ Charge Provision/ Reversal Cash payments Translation difference December 31 2015 Restructuring employee-related $ 79.6 $ 82.6 $ (2.9 ) $ (63.4 ) $ (8.2 ) $ 87.7 Other 0.2 0.2 (0.0 ) (0.2 ) 0.0 0.2 Total reserve $ 79.8 $ 82.8 $ (2.9 ) $ (63.6 ) $ (8.2 ) $ 87.9 2014 In 2014, the employee-related restructuring provisions, made on a case-by-case basis, and cash payments related mainly to headcount reductions in 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 2013 Provision/ Charge Provision/ Reversal Cash payments Translation difference December 31 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 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, and cash payments related mainly to headcount reductions in 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 2012 Provision/ Charge Provision/ Reversal Cash payments Translation difference December 31 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 |
Product Related Liabilities
Product Related Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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 performance issues including recall, product liability and warranty issues. The Company records liabilities for product related risks when probable claims are identified and when it is possible to reasonably estimate costs. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products, and the mix and volume of the products sold. The provisions are recorded on an accrual basis. The increases in reserve in 2015, 2014 and 2013 were split between warranty and recall related issues. Cash payments in 2015, 2014 and 2013 were split between warranty and recall related issues. The table below summarizes the change in the balance sheet position of the product related liabilities. DECEMBER 31 2015 2014 2013 Reserve at beginning of the year $ 51.3 $ 36.4 $ 29.9 Change in reserve 37.9 37.9 21.3 Cash payments (26.5 ) (20.9 ) (15.2 ) Translation difference (1.9 ) (2.1 ) 0.4 Reserve at end of the year $ 60.8 $ 51.3 $ 36.4 |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Debt and Credit Agreements | 12. Debt and Credit Agreements The Company uses derivative financial instruments as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. From time to time, the Company may enter into derivatives to economically hedge these exposures or the company may enter into derivatives to achieve special hedge accounting according to the requirements of ASC 815. 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. In this note, short-term debt and long-term debt are discussed including Debt-Related Derivatives (DRD), i.e. debt is reflected as including the fair value adjustments relating to hedges terminated in a prior period. DRD is amortized over the remaining life of the debt. The Debt Profile table also reflects debt excluding DRD. SHORT-TERM DEBT As of December 31, 2015, total short-term debt including DRD was $42 million. 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, 2015, excluding commercial paper facilities as described below, amounted to $301 million, of which $40 million was utilized. The aggregate amount of unused short-term lines of credit at December 31, 2015 was $261 million. The weighted average interest rate on total short-term debt outstanding at December 31, 2015 and 2014 excluding the short-term portion of long-term debt was 4.0% and 4.1%, respectively. LONG-TERM DEBT – OUTSTANDING LOANS As of December 31, 2015, total long-term debt including DRD was $1,493 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 of $243 million (including DRD) 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%. In March 2013, the interest rate swap on the remaining $165 million U.S. private placement notes issued in 2007, with a nominal value of $60 million, was cancelled. The gain is amortized through interest expense. 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 ($36 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 ($42 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%. LONG-TERM DEBT—LOAN FACILITIES The Company maintains a revolving credit facility (RCF) of $1.1 billion with a syndicate of 13 banks available through 2018. The Company pays a commitment fee of 0.16% (given the Company’s rating of A- from Standard & Poor’s at December 31, 2015). Financing costs 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 repayable at any time and in their entirety at the expiration date. In July 2013, Autoliv AB entered into a financing commitment agreement with EIB that expires in January 2016, giving Autoliv AB access to a loan of €200 million ($219 million equivalent) to help finance R&D projects at Autoliv’s R&D facilities in Germany, France and Sweden. Borrowings bear interest at EIB’s cost of funding plus 0.26%. 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. No borrowing were outstanding under the facility at December 31, 2015. In January 2016, this facility expired and was not extended. Autoliv has a total of $1.3 billion unutilized long-term debt facilities available as of December 31, 2015. The Company is not subject to any financial covenants, i.e. performance related restrictions, in any of its significant long-term borrowings or commitments. The Company has two commercial paper programs: one SEK 7 billion (approx. $838 million) Swedish program and one $1.0 billion U.S. program. Both programs were unutilized at year-end. When commercial paper is issued under these programs, it would be 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 of up to an aggregate amount of $2.0 billion can be placed in U.S. and Swedish government paper and in certain AAA rated money market funds. As of December 31, 2015, the Company had placed $623 million in money market funds and $200 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 2016 2017 2018 2019 2020 Thereafter Total Total U.S. private placement notes (incl. DRD 1) $ — $ 105.0 $ — $ 268.0 $ — $ 1,042.0 $ 1,415.0 $ 1,415.0 Overdraft/Other short-term debt (incl. DRD 1) 41.9 — — — — — — 41.9 Medium-term notes — 77.8 — — — — 77.8 77.8 Other long-term loans, incl. current portion 0.2 0.1 — — — — 0.1 0.3 Total debt as cash flow, (incl. DRD 1) $ 42.1 $ 182.9 $ — $ 268.0 $ — $ 1,042.0 $ 1,492.9 $ 1,535.0 DRD adjustment (2.5 ) 0.4 — 6.1 — — 6.5 4.0 Total debt as reported $ 39.6 $ 183.3 $ — $ 274.1 $ — $ 1,042.0 $ 1,499.4 $ 1,539.0 1) Debt Related Derivatives (DRD), i.e. the fair value adjustments to the carrying value of the underlying debt associated with hedging. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity | 13. Shareholders’ Equity The number of shares outstanding as of December 31, 2015 was 88,107,358. DIVIDENDS 2015 2014 2013 Cash dividend paid per share $ 2.22 $ 2.12 $ 2.00 Cash dividend declared per share $ 2.24 $ 2.14 $ 2.02 OTHER COMPREHENSIVE INCOME (LOSS)/ ENDING BALANCE 1) 2015 2014 2013 Cumulative translation adjustments $ (345.9 ) $ (155.1 ) $ 49.4 Net gain on cash flow hedge derivatives 0.2 — — Net pension liability (63.0 ) (97.9 ) (48.9 ) Purchase of subsidairy shares from non-controlling interest 0.2 — — Total (ending balance) $ (408.5 ) $ (253.0 ) $ 0.5 Deferred taxes on the pension liability $ 29.8 $ 43.4 $ 21.4 1) The components of Other Comprehensive Income (Loss) are net of any related income tax effects. SHARE REPURCHASE PROGRAM The Company’s Board of Directors approved a share repurchase program in 2000 authorizing the repurchase of 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 Company’s Board of Directors approved an additional 10 million shares for repurchase under the existing program. During 2015, the Company repurchased shares only in the first quarter. There is no expiration date for the share repurchase program. The Company is authorized to repurchase an additional 4,424,760 shares under the program at December 31, 2015. SHARES 2015 2014 2013 Shares repurchased (shares in millions) 0.9 6.2 1.6 Cash paid for shares $ 104.4 $ 616.0 $ 147.9 In total, Autoliv has repurchased 43.1 million shares between May 2000 and December 2015 for cash of $2,341 million, including commissions. Of the total amount of repurchased shares, 23.6 million shares were utilized for the equity unit offering during 2009-2012. In addition, 4.8 million shares have been utilized by the Stock Incentive Plan whereof 0.3 million, 0.5 million and 0.5 million were utilized during 2015, 2014 and 2013, respectively. At December 31, 2015, 14.7 million of the repurchased shares remain in treasury stock. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information | 14. Supplemental Cash Flow Information The Company’s acquisitions and divestitures of businesses and interests in affiliates, net of cash acquired were as follows: 2015 2014 2013 Business combinations and other acquisitions: Fair value of assets acquired, excluding cash $ (146.4 ) — — Liabilities assumed 7.9 — — Fair value of earn-out and deferred purchase consideration 39.6 — — Total business combinations $ (98.9 ) — — Acquisition of additional interests in subsidiaries (4.2 ) — — Acquisition of businesses and interests in affiliates, net of cash acquired $ (103.1 ) $ — $ — 2015 2014 2013 Divestitures of business, net of cash disposed $ — $ 2.4 $ — Payments for interest and income taxes were as follows: 2015 2014 2013 Interest $ 66 $ 57 $ 33 Income taxes $ 214 $ 206 $ 206 |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 6,187,925 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 2012, 2011 and 2010 (vested in 2015, 2014 and 2013) was $4.5 million, $4.4 million and $4.3 million, respectively. The aggregate intrinsic value for RSUs outstanding at December 31, 2015 was $25.5 million. The average fair value of RSUs granted in 2015, 2014 and 2013 was $105.87, $88.54 and $64.59, respectively. The average grant date fair value of stock options granted during 2015, 2014 and 2013 was estimated at $16.72, $17.35 and $15.61 per share, respectively, using the Black-Scholes option-pricing model based on the following assumptions: 2015 2014 2013 Risk-free interest rate 1.1 % 1.1 % 0.9 % Dividend yield 2.3 % 2.3 % 2.3 % Expected life in years 3.4 3.9 4.1 Expected volatility 24.0 % 28.0 % 34.0 % 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 2015, 2014 and 2013 was $8.2 million, $8.1 million and $8.3 million, respectively. The total compensation cost related to non-vested awards not yet recognized is $7.9 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 2013 to 2015 is as follows: RSUs 2015 2014 2013 Outstanding at beginning of year 198,285 204,277 211,618 Granted 74,908 64,223 91,230 Shares issued (58,186 ) (56,184 ) (84,342 ) Cancelled/Forfeited/Expired (10,455 ) (14,031 ) (14,229 ) Outstanding at end of year 204,552 198,285 204,277 STOCK OPTIONS Number of options Weighted average 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 $ 59.20 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 Granted 187,996 113.51 Exercised (244,182 ) 68.82 Cancelled/Forfeited/Expired (9,588 ) 92.70 Outstanding at Dec 31, 2015 473,051 $ 87.88 OPTIONS EXERCISABLE At December 31, 2013 559,483 $ 54.34 At December 31, 2014 349,190 $ 57.08 At December 31, 2015 290,487 $ 71.76 The following summarizes information about stock options outstanding and exercisable on December 31, 2015: RANGE OF EXERCISE PRICES Number Remaining Weighted $16.31 - $19.96 20,800 3.14 $ 16.31 $44.70 - $49.60 28,830 3.38 $ 45.60 $51.67 - $59.01 19,524 1.71 $ 54.73 $67.00 - $69.18 88,058 6.80 $ 68.44 $72.95 - $94.87 133,275 7.58 $ 90.77 $113.36 - $126.46 182,564 9.13 $ 113.51 473,051 7.34 $ 87.88 RANGE OF EXERCISE PRICES Number Remaining Weighted $16.31 - $19.96 20,800 3.14 $ 16.31 $44.70 - $49.60 28,830 3.38 $ 45.60 $51.67 - $59.01 19,524 1.71 $ 54.73 $67.00 - $69.18 88,058 6.80 $ 68.44 $72.95 - $94.87 133,275 7.58 $ 90.77 $113.36 - $126.46 — — — 290,487 6.22 $ 71.76 The total aggregate intrinsic value, which is the difference between the exercise price and $124.77 (closing price per share at December 31, 2015), for all “in the money” stock options outstanding and exercisable was $17.4 million and $15.3 million, respectively. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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$63 million (approximately $16.3 million), inclusive of fines, penalties and interest. The Company believes the full amount assessed is baseless and that it has reasonable legal and factual defenses to the assessment and, consequently, plans to defend its interests vigorously. However, the Company believes that a loss is probable with respect to at least a portion of the assessed amount and has accrued an amount that is not material to the Company’s results of operations for the period ended December 31, 2015. However, the Company cannot predict or estimate the duration or ultimate outcome of this matter. 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 December 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. 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. 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, 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 loss or a range of loss, or predict the reporting periods in which any such loss may be recorded. Consequently, the Company has not recorded a provision for loss as of December 31, 2015 with respect to this investigation. On July 6, 2015, the Company learned that the General Superintendence of the Administrative Council for Economic Defense (“CADE”) in Brazil had initiated an investigation of an alleged cartel involving sales in Brazil of seatbelts, airbags, and steering wheels by the Company’s Brazilian subsidiary and the Brazilian subsidiary of a competitor. The Company was not aware of this investigation prior to CADE’s announcement. The Company believes that a loss in the form of a civil penalty is probable with respect to this matter and accrued an amount that is not material to the Company’s results of operations to resolve this matter for the period ended December 31, 2015. However, the Company cannot predict or estimate the duration or ultimate outcome of this matter. 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 sought 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 sought 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 nineteen purported antitrust class action lawsuits filed between July 2012 and June 2015. Fifteen 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, not including the recent truck and equipment dealer class action described below, subject to final approval by the MDL court following notice to the settlement class, an opportunity to object to 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. Following notice to the auto dealer settlement class, to which there were no opt-outs or objections, and a final fairness hearing on November 18, 2015, the MDL court on December 7, 2015 entered an order granting final approval to the auto dealer class settlement. On January 13, 2016, the end-payor plaintiffs filed a motion for authorization to disseminate class notice of several end-payor settlement agreements, including their settlement agreement with the Company, which would begin the opt-out process. The three class settlements will not resolve any claims of settlement class members who opt-out of the settlements or the unasserted 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 that were not covered by its U.S. direct purchaser settlement described above. The total amount of these additional settlements was $81 million. Autoliv 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. In June 2015, a class action lawsuit was filed against the Company in the United States District Court for the Eastern District of Michigan by truck dealers seeking to represent a class of truck and equipment dealers that purchased occupant safety products manufactured by defendants or purchased trucks and equipment containing such products in the U.S. As in the other class actions, plaintiffs generally alleged that the Company and its competitors, who were also named as defendants, have engaged in long-running global conspiracies to fix the prices of the subject products in violation of antitrust laws and unfair or deceptive trade practice statues. This lawsuit was assigned to the MDL court and will be processed as part of the ongoing Automobile Parts Antitrust MDL. On January 12, 2016, the Company reached an agreement in principle to settle with the truck and equipment dealers class for a non-material amount. The settlement is subject to the negotiation and execution of a definitive agreement and court approval following notice to the settlement class. The remaining 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, 2015. There is currently no timeline for class certification or discovery in the Canadian occupant safety systems cases. These class actions have been stayed pending proceedings in certain earlier-filed auto parts 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. 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 or 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, 2015 | |
Lease Commitments | 17. Lease Commitments OPERATING LEASES 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 $40.9 million, $44.6 million and $45.8 million for 2015, 2014 and 2013, respectively. At December 31, 2015, future minimum lease payments for non-cancellable operating leases totaled $113.6 million and are payable as follows (in millions): 2016: $35.0; 2017: $23.3; 2018: $18.2; 2019: $15.3; 2020: $9.5; 2021 and thereafter: $12.3. CAPITAL LEASES The Company leases certain property, plant and equipment under capital lease contracts. The capital leases expire at various dates through 2017. At December 31, 2015, future minimum lease payments for non-cancellable capital leases were immaterial. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014 and 2013 were $19.9 million, $20.2 million and $19.7 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, 2015, 2014 and 2013 were $2.2 million, $2.4 million and $1.9 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. 2015 2014 2015 2014 Benefit obligation at beginning of year $ 357.0 $ 265.8 $ 237.3 $ 205.0 Service cost 9.9 7.3 14.4 13.5 Interest cost 14.4 13.0 7.0 8.2 Actuarial (gain) loss due to: Change in discount rate (47.6 ) 58.9 (9.7 ) 40.4 Experience 9.6 (0.5 ) (7.7 ) 1.0 Other assumption changes (1.0 ) 18.4 (2.2 ) (1.9 ) Plan participants’ contributions — — 0.2 0.2 Plan amendments 0.3 — 0.2 0.9 Benefits paid (18.0 ) (5.9 ) (8.4 ) (8.3 ) Curtailments — — (0.8 ) 0.1 Special termination benefits — — 0.1 — Other — — (0.2 ) (0.5 ) Translation difference — — (14.4 ) (21.3 ) Benefit obligation at end of year $ 324.6 $ 357.0 $ 215.8 $ 237.3 Fair value of plan assets at beginning of year $ 253.8 $ 223.6 $ 108.0 $ 99.9 Actual return on plan assets (2.5 ) 29.4 (1.4 ) 14.2 Company contributions 6.7 6.7 9.6 9.4 Plan participants’ contributions — — 0.1 0.2 Benefits paid (18.0 ) (5.9 ) (8.4 ) (8.3 ) Other — — (0.2 ) (0.2 ) Translation difference — — (4.3) (7.2) Fair value of plan assets at year end $ 240.0 $ 253.8 $ 103.4 $ 108.0 Funded status recognized in the balance sheet $ (84.6 ) $ (103.2 ) $ (112.4 ) $ (129.3 ) 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. COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS U.S. 2015 2014 2013 Service cost $ 9.9 $ 7.3 $ 9.3 Interest cost 14.4 13.0 12.8 Expected return on plan assets (17.5 ) (15.4 ) (11.6 ) Amortization of prior service credit (1.0 ) (1.0 ) (1.0 ) Amortization of actuarial loss 7.7 1.9 10.0 Net periodic benefit cost $ 13.5 $ 5.8 $ 19.5 COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS (CONTINUED) Non-U.S. 2015 2014 2013 Service cost $ 14.4 $ 13.5 $ 13.5 Interest cost 7.0 8.2 7.3 Expected return on plan assets (3.8 ) (4.5 ) (4.0 ) Amortization of prior service costs 0.3 0.3 0.2 Amortization of actuarial loss 3.1 1.1 2.5 Settlement loss (gain) 0.0 0.1 0.2 Curtailment loss (gain) 0.0 0.1 0.1 Special termination benefits 0.1 — 0.5 Net periodic benefit cost $ 21.1 $ 18.8 $ 20.3 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 $(0.9) million. Amortization of net actuarial losses is expected to be $4.4 million in 2016. Net periodic benefit cost associated with these U.S. plans was $13.5 million in 2015 and is expected to be around $9.7 million in 2016. 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 $1.6 million, respectively. Net periodic benefit cost associated with these non-U.S. plans was $21.1 million in 2015 and is expected to be around $19.0 million in 2016. The amortization of the net actuarial loss is made over the estimated remaining service lives of the plan participants, 11 years for U.S. and 6-21 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. 2015 2014 2015 2014 Net actuarial loss (gain) $ 79.9 $ 106.6 $ 31.9 $ 53.8 Prior service (credit) cost (0.6) (1.9) 2.3 2.6 Total accumulated other comprehensive income recognized in the balance sheet $ 79.3 $ 104.7 $ 34.2 $ 56.4 CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. 2015 2014 2015 2014 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 104.7 $ 42.7 $ 56.4 $ 32.1 Net actuarial loss (gain) (19.0 ) 62.8 (14.9 ) 30.3 Prior service cost 0.3 — 0.2 0.9 Amortization of prior service credit (cost) 1.0 1.0 (0.3 ) (0.3 ) Amortization of actuarial loss (7.7 ) (1.8 ) (3.1 ) (1.2 ) Translation difference — — (4.1 ) (5.4 ) Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 79.3 $ 104.7 $ 34.2 $ 56.4 The accumulated benefit obligation for the U.S. non-contributory defined benefit pension plans was $261.8 million and $278.5 million at December 31, 2015 and 2014, respectively. The accumulated benefit obligation for the non-U.S. defined benefit pension plans was $177.7 million and $195.4 million at December 31, 2015 and 2014, 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. PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31 U.S. Non-U.S. 2015 2014 2015 2014 Projected Benefit Obligation (PBO) $ 324.6 $ 357.0 $ 118.0 $ 155.4 Accumulated Benefit Obligation (ABO) $ 261.8 $ 278.5 $ 89.5 $ 124.1 Fair value of plan assets $ 240.0 $ 253.8 $ 4.3 $ 29.6 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 2015 2014 2015 2014 Discount rate 4.50 4.00 0.50 - 4.10 0.50 - 4.00 Rate of increases in compensation level 2.65 3.50 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 2015 2014 2013 Discount rate 4.00 5.00 4.05 Rate of increases in compensation level 3.50 3.50 3.50 Expected long-term rate of return on assets 7.08 7.08 7.50 Non-U.S. 1) % WEIGHTED AVERAGE 2015 2014 2013 Discount rate 0.50 - 4.00 1.00 - 5.00 1.50 - 4.50 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 2.60 - 6.15 3.00 - 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 selecting 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 2015 expense and 7.08% for calculating the 2016 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 2015. The closed U.K. plan which has a targeted and actual allocation of almost 100% debt instruments accounts for approximately 59% of the total non-U.S. plan assets. Autoliv made contributions to the U.S. plan during 2015 and 2014 amounting to $6.7 million and $6.7 million, respectively. Contributions to the U.K. plan during 2015 and 2014 amounted to $1.4 million and $1.5 million, respectively. The Company expects to contribute $6.8 million to its U.S. pension plan in 2016 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 $1.4 million in 2016 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 2015 2014 2015 2014 Equity securities 55 56 54 15 15 Debt instruments 45 43 46 65 63 Other assets — 1 — 20 22 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 Assets U.S. Equity Large Cap $ 88.1 $ 90.9 Mid Cap 10.1 10.7 Small Cap 10.3 10.7 Non-U.S. Equity 41.0 42.2 U.S. Bonds Aggregate 103.7 115.9 Non-U.S. Bonds Corporate 60.9 62.6 Aggregate 5.9 5.7 Insurance Contracts 13.9 15.7 Other Investments 9.5 7.4 Total $ 343.4 $ 361.8 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. 2016 $ 12.9 $ 5.9 2017 $ 13.7 $ 6.9 2018 $ 15.7 $ 7.7 2019 $ 17.6 $ 8.1 2020 $ 18.9 $ 9.9 Years 2021-2025 $ 126.6 $ 60.3 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 2015 2014 2013 Benefit obligation at beginning of year $ 21.0 $ 34.3 $ 34.6 Service cost 0.5 1.3 1.4 Interest cost 0.8 1.6 1.4 Actuarial (gain) loss due to: Change in discount rate (1.2 ) 2.4 (3.7 ) Experience (0.9 ) (1.1 ) 1.0 Other assumption changes (0.9 ) 0.4 (1.0 ) Plan amendments (0.0 ) (17.2 ) — Benefits paid (0.2 ) (0.8 ) (0.3 ) Other 0.2 0.1 0.9 Benefit obligation at end of year $ 19.3 $ 21.0 $ 34.3 Fair value of plan assets at beginning of year $ — $ — $ — Company contributions 0.2 0.8 0.3 Benefits paid (0.2 ) (0.8 ) (0.3 ) Fair value of plan assets at end of year $ — $ — $ — Accrued postretirement benefit cost recognized in the balance sheet $ (19.3 ) $ (21.0 ) $ (34.3 ) The liability for postretirement benefits other than pensions is classified as other non-current liabilities in the balance sheet. COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS PERIOD ENDED DECEMBER 31 2015 2014 2013 Service cost $ 0.5 $ 1.3 $ 1.4 Interest cost 0.8 1.6 1.4 Amortization of prior service cost (2.2 ) (0.1 ) (0.1 ) Amortization of actuarial loss (0.1 ) (0.1 ) (0.1 ) Net periodic benefit (credit) cost $ (1.0 ) $ 2.7 $ 2.6 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. 2015 2014 2015 2014 Net actuarial loss (gain) $ (3.0 ) $ (0.7 ) $ (2.5 ) $ (1.7 ) Prior service cost (credit) (15.2 ) (17.3 ) (0.0 ) (0.0 ) Total accumulated other comprehensive income recognized in the balance sheet $ (18.2 ) $ (18.0 ) $ (2.5 ) $ (1.7 ) For measuring end-of-year obligations at December 31, 2015, 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 4.65% in 2015 and 4.20% in 2014. The average discount rate used in determining the postretirement benefit cost was 4.20% in 2015, 5.05% in 2014 and 4.25% in 2013. 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, 2015. This is due to the fixed-dollar nature of the benefits provided under the postretirement benefit 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 $(2.5) million combined. The estimated future benefit payments for the postretirement benefits reflect expected future service as appropriate. POSTRETIREMENT BENEFITS EXPECTED 2016 $ 0.6 2017 $ 0.6 2018 $ 0.7 2019 $ 0.7 2020 $ 0.8 Years 2021 - 2025 $ 4.9 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information | 19. 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 products and components, 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. The 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 its quarterly report for the period ending March 31, 2015. The Company has also recast the corresponding items of segment information for the comparison years 2014 and 2013 as set forth below. NET SALES, INCLUDING INTERSEGMENT SALES 2015 2014 2013 Passive Safety $ 7,621.2 $ 7,800.1 $ 7,575.1 Electronics 1,588.7 1,488.9 1,258.6 Total segment sales 9,209.9 9,289.0 8,833.7 Corporate and other 14.7 20.1 21.5 Intersegment sales (55.0 ) (68.6 ) (51.8 ) Total net sales $ 9,169.6 $ 9,240.5 $ 8,803.4 INCOME BEFORE INCOME TAXES 2015 2014 2013 Passive Safety $ 669.2 $ 598.1 $ 619.9 Electronics 64.5 76.0 84.0 Segment operating income 733.7 674.1 703.9 Corporate and other (5.9 ) 48.5 57.5 Interest and other non-operating expenses, net (56.8 ) (62.5 ) (34.7 ) Income from equity method investments 4.7 6.9 7.3 Income before income taxes $ 675.7 $ 667.0 $ 734.0 CAPITAL EXPENDITURES 2015 2014 2013 Passive Safety $ 405.6 $ 389.0 $ 326.8 Electronics 53.2 64.1 57.4 Corporate and other 7.0 2.9 1.4 Total capital expenditures $ 465.8 $ 456.0 $ 385.6 DEPRECIATION AND AMORTIZATION 2015 2014 2013 Passive Safety $ 264.5 $ 254.6 $ 238.1 Electronics 49.3 45.2 38.6 Corporate and other 5.3 5.6 9.3 Total depreciation and amortization $ 319.1 $ 305.4 $ 286.0 SEGMENT ASSETS 2015 2014 Passive Safety $ 5,539.3 $ 5,782.3 Electronics 966.5 713.9 Segment assets $ 6,505.8 $ 6,496.2 Corporate and other 1) 1,019.7 946.7 Total assets $ 7,525.5 $ 7,442.9 1) Corporate and other assets mainly consist of cash and cash equivalents, income taxes and equity method investments. 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 2015: GM 12% (incl. Opel, etc.), Ford 12% and Renault 10% (incl. Nissan). 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). NET SALES BY REGION 2015 2014 2013 Asia $ 3,077.4 $ 3,097.9 $ 2,974.1 Whereof: China 1,523.7 1,521.6 1,405.5 Japan 668.0 687.7 688.2 Rest of Asia 885.7 888.6 880.4 Americas 3,264.8 3,099.4 2,943.6 Europe 2,827.4 3,043.2 2,885.7 Total $ 9,169.6 $ 9,240.5 $ 8,803.4 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product. External sales in the U.S. amounted to $2,469 million, $2,269 million and $2,122 million in 2015, 2014 and 2013, respectively. Of the external sales, exports from the U.S. to other regions amounted to approximately $527 million, $459 million and $488 million in 2015, 2014 and 2013, respectively. NET SALES BY PRODUCT 2015 2014 2013 Airbag products 1) $ 5,036.2 $ 5,019.3 $ 4,822.8 Seatbelt products 1) 2,599.1 2,800.1 2,772.7 Passive safety electronic products 923.2 932.0 863.2 Active safety products 611.1 489.1 344.7 Total net sales $ 9,169.6 $ 9,240.5 $ 8,803.4 1) Including Corporate and other sales. LONG-LIVED ASSETS 2015 2014 Asia $ 739 $ 696 Whereof: China 434 391 Japan 103 98 Rest of Asia 202 207 Americas 2,027 1,906 Europe 721 705 Total $ 3,487 $ 3,307 Long-lived assets in the U.S. amounted to $1,863 million and $1,733 million for 2015 and 2014, respectively. For 2015, $1,595 million (2014, $1,476 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, 2015 | |
Earnings Per Share | 20. Earnings Per Share The weighted average shares used in calculating earnings per share were: 2015 2014 2013 Weighted average shares basic 88.2 92.1 95.5 Effect of dilutive securities: stock options/share awards 0.2 0.3 0.4 Weighted average shares diluted 88.4 92.4 95.9 There were approximately 2 thousand antidilutive shares outstanding for the year ended December 31, 2015 and no antidilutive shares outstanding for the years ended December 31 2014 and 2013. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events | 21. Subsequent Events There were no reportable events subsequent to December 31, 2015. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (unaudited) | 22. Quarterly Financial Data (unaudited) 2015 Q1 Q2 Q3 Q4 Net sales $ 2,174.1 $ 2,291.5 $ 2,184.5 $ 2,519.5 Gross profit 423.3 460.0 440.1 520.7 Income before taxes 64.5 194.5 151.8 264.9 Net income 35.7 136.8 99.1 185.9 Net income attributable to controlling interest 35.7 136.7 98.9 185.5 Earnings per share – basic $ 0.40 $ 1.55 $ 1.12 $ 2.11 – diluted $ 0.40 $ 1.55 $ 1.12 $ 2.10 Dividends paid $ 0.54 $ 0.56 $ 0.56 $ 0.56 2014 Q1 Q2 Q3 Q4 Net sales $ 2,295.8 $ 2,383.0 $ 2,208.0 $ 2,353.7 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 83.2 106.7 148.0 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 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 the 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. 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 fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and classified as a liability 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 or 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 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 awards under the Stock Incentive Plan, including Restricted Stock Units (RSUs) and stock options, over the respective 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 benefits 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. |
Cash Equivalents | CASH EQUIVALENTS The Company considers all highly liquid investment instruments purchased with an original 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. |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company uses derivative financial instruments, primarily forwards, options and swaps to reduce the effects of fluctuations in foreign exchange rates, interest rates and the resulting variability of the Company’s operating results. On the date that a derivative contract is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge) or (3) an economic hedge not applying special hedge accounting pursuant to ASC 815. 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. All derivatives are recognized in the consolidated financial statements at fair value. 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. For further details on the Company’s financial instruments, see Notes 3 and 12. |
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. Generally, the lowest level of cash flows for impairment assessment is customer platform level. |
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, 2015 and 2014, the Company had goodwill of approximately $1.7 billion and $1.6 billion, respectively. Of the goodwill amount, $1.4 billion and $0.3 billion are associated with the Passive Safety and Electronics segments, respectively. Approximately $1.2 billion of the Passive Safety goodwill is 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. 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 2013 through 2015. |
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 restructuring 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 benefits 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 $(11.0) million in 2015, $(3.8) million in 2014 and $(26.3) million in 2013, 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 November 2015, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which simplifies the presentation of deferred income taxes. The amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this Update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company plans to early adopt this standard prospectively in its interim reporting for the period ended March 31, 2016. In September 2015, the FASB, issued the ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (Topic 805), which requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires the acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company early adopted this standard as of December 31, 2015. The adoption of this standard had no material impact for any periods presented. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede nearly all existing revenue recognition guidance under U.S. 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 was originally to be effective for public entities for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), that defers the effective date of ASU 2014-09 for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently in the 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 July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, this update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company plans to adopt this standard as of January 1, 2017. The adoption of this standard is not expected to have a material impact for any periods presented. In April 2015, the FASB, issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. For public business entities, the final guidance will be effective for fiscal years beginning after December 15, 2015; however, early adoption (including in interim periods) is permitted. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. An entity is also required in the year of adoption to provide certain disclosures about the change in accounting principle, including the nature of and reason for the change, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The Company plans to adopt this standard beginning January 1, 2016. The adoption of this standard is not expected to have a material impact for any periods presented. In August 2014, the FASB issued ASU 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, which 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 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. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of the Consideration Transferred | The acquisition date fair value of the total consideration transferred is presented in the table below: Acquisition consideration August 17, 2015 Cash $ 98.9 Earn-out 25.0 Deferred purchase consideration 14.6 Total consideration transferred $ 138.5 |
Supplemental Cash Flow Inform32
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Acquisitions and Divestitures of Businesses, Net of Cash Acquired | The following table summarizes the recognized fair values of identifiable assets acquired and liabilities assumed as of the acquisition date: Amounts recognized as of acquisition date August 17, 2015 Assets: Receivables $ 11.5 Inventories 6.0 Other current assets 0.1 Property, plant and equipment 0.1 Intangibles 44.2 Goodwill 84.5 Total assets $ 146.4 Liabilities: Accounts payable $ 7.6 Accrued expenses 0.3 Total liabilities $ 7.9 Net assets acquired $ 138.5 |
Schedule of Payments for Interest and Income Taxes | Payments for interest and income taxes were as follows: 2015 2014 2013 Interest $ 66 $ 57 $ 33 Income taxes $ 214 $ 206 $ 206 |
Business Combinations | |
Schedule of Acquisitions and Divestitures of Businesses, Net of Cash Acquired | The Company’s acquisitions and divestitures of businesses and interests in affiliates, net of cash acquired were as follows: 2015 2014 2013 Business combinations and other acquisitions: Fair value of assets acquired, excluding cash $ (146.4 ) — — Liabilities assumed 7.9 — — Fair value of earn-out and deferred purchase consideration 39.6 — — Total business combinations $ (98.9 ) — — Acquisition of additional interests in subsidiaries (4.2 ) — — Acquisition of businesses and interests in affiliates, net of cash acquired $ (103.1 ) $ — $ — 2015 2014 2013 Divestitures of business, net of cash disposed $ — $ 2.4 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Derivatives, not designated as hedging instruments, relate to economic hedges and are market to market with all amounts recognized in the Consolidated Statements of Net Income. The derivatives not designated as hedging instruments outstanding at December 31, 2015 were foreign exchange swaps. For 2015 the gains and losses recognized in other non-operating items, net were a loss of $3.3 million for derivative instruments not designated as hedging instruments. For 2014, the Company recognized a gain of $2.0 million in other non-operating items, net for derivative instruments not designated as hedging instruments. For 2015 and 2014, the gains and losses recognized as interest expense were immaterial. DECEMBER 31, 2015 DECEMBER 31, 2014 Fair Value Measurements Fair Value Measurements DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS 1) Nominal Derivative asset (Other current/ Derivative liability (Other current / Nominal Derivative asset (Other current / non-current Derivative liability (Other current / Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 58.0 $ 0.2 $ 0.2 $ — $ — $ — Foreign exchange forward contracts, less than 2 years (cash flow hedge) 11.3 0.0 0.1 — — — TOTAL $ 69.3 $ 0.2 $ 0.3 $ — $ — $ — DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign exchange swaps, less than 6 months $ 482.4 2) $ 2.5 3) $ 5.1 4) $ 459.1 5) $ 1.3 6) $ 0.4 7) TOTAL $ 482.4 $ 2.5 $ 5.1 $ 459.1 $ 1.3 $ 0.4 1) There is no netting since there are no offsetting contracts. 2) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $435.8 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $2.4 million. 4) Net amount after deducting for offsetting swaps under ISDA agreements is $4.9 million. 5) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. 6) Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. 7) Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 million. |
Fair Value of Debt | DECEMBER 31, 2015 CARRYING VALUE 1) DECEMBER 31, 2015 FAIR VALUE DECEMBER 31, 2014 CARRYING VALUE 1) DECEMBER 31, 2014 FAIR VALUE LONG-TERM DEBT U.S. Private placement $ 1,421.5 $ 1,472.6 $ 1,424.2 $ 1,510.2 Medium-term notes 77.8 79.6 83.2 86.3 Other long-term debt 0.1 0.1 13.8 13.8 TOTAL $ 1,499.4 $ 1,552.3 $ 1,521.2 $ 1,610.3 SHORT-TERM DEBT Overdrafts and other short-term debt $ 39.4 $ 39.4 $ 57.8 $ 57.8 Short-term portion of long-term debt 0.2 0.2 21.8 21.8 TOTAL $ 39.6 $ 39.6 $ 79.6 $ 79.6 1) Debt as reported in balance sheet. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Income Before Income Taxes | INCOME BEFORE INCOME TAXES 2015 2014 2013 U.S. $ 143.8 $ 59.5 $ 169.4 Non-U.S. 531.9 607.5 564.6 Total $ 675.7 $ 667.0 $ 734.0 |
Schedule of Provision for Income Taxes | PROVISION FOR INCOME TAXES 2015 2014 2013 Current U.S. federal $ 68.9 $ 32.2 $ 42.7 Non-U.S. 169.2 166.2 164.7 U.S. state and local 4.2 0.4 1.6 Deferred U.S. federal (9.3 ) (3.2 ) 11.7 Non-U.S. (13.7 ) 2.9 22.2 U.S. state and local (1.1 ) (0.5 ) 1.2 Total income tax expense $ 218.2 $ 198.0 $ 244.1 |
Schedule of Effective Income Tax Rate | EFFECTIVE INCOME TAX RATE 2015 2014 2013 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Foreign tax rate variances (8.1 ) (8.5 ) (8.2 ) Tax credits (4.3 ) (4.9 ) (4.5 ) Change in Valuation Allowances 0.1 0.6 5.3 Current year losses with no benefit 4.1 5.9 4.0 Net operating loss carry-forwards (0.5 ) (0.0 ) (0.1 ) Changes in tax reserves 1.4 (0.1 ) 1.1 Cost of double taxation 2.7 2.1 0.6 Earnings of equity investments (0.2 ) (0.4 ) (0.4 ) Withholding taxes 1.2 0.6 1.0 State taxes, net of federal benefit 0.3 0.0 0.2 Other, net 0.6 (0.6 ) (0.8 ) Effective income tax rate 32.3 % 29.7 % 33.2 % |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits. UNRECOGNIZED TAX BENEFITS 2015 2014 2013 Unrecognized tax benefits at beginning of year $ 21.5 $ 22.7 $ 14.7 Increases as a result of tax positions taken during a prior period 2.5 0.6 7.2 Decreases as a result of tax positions taken during a prior period (0.1 ) (0.0 ) (0.3 ) Increases as a result of tax positions taken during the current period 5.7 3.1 2.9 Decreases as a result of tax positions taken during the current period 0.0 0.0 0.0 Decreases relating to settlements with taxing authorities (0.7 ) (2.4 ) (0.8 ) Decreases resulting from the lapse of the applicable statute of limitations (2.0 ) (1.2 ) (0.6 ) Translation Difference (1.7 ) (1.3 ) (0.4 ) Total unrecognized tax benefits at end of year $ 25.2 $ 21.5 $ 22.7 |
Schedule of Deferred Taxes | The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows. DEFERRED TAXES DECEMBER 31 2015 2014 2013 Assets Provisions $ 90.6 $ 90.6 $ 97.2 Costs capitalized for tax 21.3 12.0 18.5 Property, plant and equipment 15.5 18.9 20.9 Retirement Plans 60.8 73.6 49.9 Tax receivables, principally NOL’s 192.8 166.2 136.6 Deferred tax assets before allowances $ 381.0 $ 361.3 $ 323.1 Valuation allowances (177.7 ) (150.1 ) (115.5 ) Total $ 203.3 $ 211.2 $ 207.6 Liabilities Acquired intangibles $ (18.4 ) $ (22.0 ) $ (25.3 ) Statutory tax allowances (0.6 ) (0.7 ) (1.3 ) Insurance deposit (3.3 ) (5.0 ) (6.4 ) Distribution taxes (29.8 ) (34.0 ) (38.1 ) Other (2.9 ) (2.6 ) (3.0 ) Total $ (55.0 ) $ (64.3 ) $ (74.1 ) Net deferred tax asset $ 148.3 $ 146.9 $ 133.5 |
Schedule of Valuation Allowances Against Deferred Tax Assets | The following table summarizes the activity related to the Company’s valuation allowances. VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 2015 2014 2013 Allowances at beginning of year $ 150.1 $ 115.5 $ 44.8 Benefits reserved current year 53.7 55.2 76.1 Benefits recognized current year (5.2 ) (0.7 ) (1.8 ) Write-offs and other changes (0.2 ) (3.0 ) (0.0 ) Translation difference (20.7 ) (16.9 ) (3.6 ) Allowances at end of year $ 177.7 $ 150.1 $ 115.5 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Receivables | DECEMBER 31 2015 2014 2013 Receivables $ 1,793.7 $ 1,713.2 $ 1,692.6 Allowance at beginning of year $ (6.9 ) $ (4.6 ) $ (7.3 ) Reversal of allowance 1.3 0.9 4.1 Addition to allowance (1.9 ) (4.1 ) (2.2 ) Write-off against allowance 0.8 0.6 0.9 Translation difference 0.6 0.3 (0.1 ) Allowance at end of year $ (6.1 ) $ (6.9 ) $ (4.6 ) Total receivables, net of allowance $ 1,787.6 $ 1,706.3 $ 1,688.0 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Inventories | DECEMBER 31 2015 2014 2013 Raw material $ 339.9 $ 312.2 $ 314.8 Work in progress 243.4 240.6 232.9 Finished products 217.9 206.0 201.9 Inventories $ 801.2 $ 758.8 $ 749.6 Inventory reserve at beginning of year $ (83.3 ) $ (87.8 ) $ (83.5 ) Reversal of reserve 4.3 5.1 5.1 Addition to reserve (22.2 ) (10.9 ) (20.8 ) Write-off against reserve 5.0 4.0 10.5 Translation difference 6.4 6.3 0.9 Inventory reserve at end of year $ (89.8 ) $ (83.3 ) $ (87.8 ) Total inventories, net of reserve $ 711.4 $ 675.5 $ 661.8 |
Investments and Other Non-cur37
Investments and Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Investments and Other Non-Current Assets | DECEMBER 31 2015 2014 Equity method investments $ 22.9 $ 26.8 Deferred tax assets 141.0 139.0 Income tax receivables 50.9 54.7 Other non-current assets 41.0 34.8 Investments and other non-current assets $ 255.8 $ 255.3 |
Schedule of Equity Method Investments and Respective Percentage of Ownership | The equity method investments and the respective percentage of ownership are as follows: COUNTRY Ownership % Company name Malaysia 49 % Autoliv-Hirotako Safety Sdn Bhd (parent and subsidiaries) China 30 % Changchun Hongguang-Autoliv Vehicle Safety Systems Co. Ltd. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | DECEMBER 31 2015 2014 Estimated Land and land improvements $ 106.6 $ 106.0 n/a to 15 Machinery and equipment 3,179.7 3,160.0 3-8 Buildings 765.9 813.2 20-40 Construction in progress 284.6 263.2 n/a Property, plant and equipment $ 4,336.8 $ 4,342.4 Less accumulated depreciation (2,899.7) (2,952.2) Net of depreciation $ 1,437.1 $ 1,390.2 |
Depreciation Expense | DEPRECIATION INCLUDED IN 2015 2014 2013 Cost of sales $ 268.8 $ 258.7 $ 237.2 Selling, general and administrative expenses 7.3 8.0 8.2 Research, development and engineering expenses, net 23.3 22.7 20.2 Total $ 299.4 $ 289.4 $ 265.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Goodwill | GOODWILL Total Passive Safety Segment Electronics Carrying amount December 31, 2013 $ 1,610.1 $ 1,602.3 $ 7.8 Translation differences (16.1) (16.1) — Carrying amount December 31, 2014 $ 1,594.0 $ 1,586.2 $ 7.8 Allocation of goodwill due to change in segment reporting as of January 1, 2015 — (185.7) 185.7 Carrying amount January 1, 2015 $ 1,594.0 $ 1,400.5 $ 193.5 Acquisition 84.5 — 84.5 Translation differences (12.2) (12.2) — Carrying amount at end of year $ 1,666.3 $ 1,388.3 $ 278.0 |
Schedule of Amortizable Intangibles | AMORTIZABLE INTANGIBLES 2015 2014 Gross carrying amount $ 484.9 $ 394.6 Accumulated amortization (356.9) (327.4) Carrying value $ 128.0 $ 67.2 |
Restructuring and Other Liabi40
Restructuring and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Change in Balance Sheet Position of Restructuring Reserves | 2015 In 2015, 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, 2014 to December 31, 2015. December 31 2014 Provision/ Charge Provision/ Reversal Cash payments Translation difference December 31 2015 Restructuring employee-related $ 79.6 $ 82.6 $ (2.9 ) $ (63.4 ) $ (8.2 ) $ 87.7 Other 0.2 0.2 (0.0 ) (0.2 ) 0.0 0.2 Total reserve $ 79.8 $ 82.8 $ (2.9 ) $ (63.6 ) $ (8.2 ) $ 87.9 2014 In 2014, the employee-related restructuring provisions, made on a case-by-case basis, and cash payments related mainly to headcount reductions in 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 2013 Provision/ Charge Provision/ Reversal Cash payments Translation difference December 31 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 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, and cash payments related mainly to headcount reductions in 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 2012 Provision/ Charge Provision/ Reversal Cash payments Translation difference December 31 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 |
Product Related Liabilities (Ta
Product Related Liabilities (Tables) | 12 Months Ended |
Dec. 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. DECEMBER 31 2015 2014 2013 Reserve at beginning of the year $ 51.3 $ 36.4 $ 29.9 Change in reserve 37.9 37.9 21.3 Cash payments (26.5 ) (20.9 ) (15.2 ) Translation difference (1.9 ) (2.1 ) 0.4 Reserve at end of the year $ 60.8 $ 51.3 $ 36.4 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2016 2017 2018 2019 2020 Thereafter Total Total U.S. private placement notes (incl. DRD 1) $ — $ 105.0 $ — $ 268.0 $ — $ 1,042.0 $ 1,415.0 $ 1,415.0 Overdraft/Other short-term debt (incl. DRD 1) 41.9 — — — — — — 41.9 Medium-term notes — 77.8 — — — — 77.8 77.8 Other long-term loans, incl. current portion 0.2 0.1 — — — — 0.1 0.3 Total debt as cash flow, (incl. DRD 1) $ 42.1 $ 182.9 $ — $ 268.0 $ — $ 1,042.0 $ 1,492.9 $ 1,535.0 DRD adjustment (2.5 ) 0.4 — 6.1 — — 6.5 4.0 Total debt as reported $ 39.6 $ 183.3 $ — $ 274.1 $ — $ 1,042.0 $ 1,499.4 $ 1,539.0 1) Debt Related Derivatives (DRD), i.e. the fair value adjustments to the carrying value of the underlying debt associated with hedging. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Dividends Paid | DIVIDENDS 2015 2014 2013 Cash dividend paid per share $ 2.22 $ 2.12 $ 2.00 Cash dividend declared per share $ 2.24 $ 2.14 $ 2.02 |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS)/ ENDING BALANCE 1) 2015 2014 2013 Cumulative translation adjustments $ (345.9 ) $ (155.1 ) $ 49.4 Net gain on cash flow hedge derivatives 0.2 — — Net pension liability (63.0 ) (97.9 ) (48.9 ) Purchase of subsidairy shares from non-controlling interest 0.2 — — Total (ending balance) $ (408.5 ) $ (253.0 ) $ 0.5 Deferred taxes on the pension liability $ 29.8 $ 43.4 $ 21.4 |
Share Repurchase Program | SHARES 2015 2014 2013 Shares repurchased (shares in millions) 0.9 6.2 1.6 Cash paid for shares $ 104.4 $ 616.0 $ 147.9 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Weighted Average Fair Value of Stock Options Granted | The average grant date fair value of stock options granted during 2015, 2014 and 2013 was estimated at $16.72, $17.35 and $15.61 per share, respectively, using the Black-Scholes option-pricing model based on the following assumptions: 2015 2014 2013 Risk-free interest rate 1.1 % 1.1 % 0.9 % Dividend yield 2.3 % 2.3 % 2.3 % Expected life in years 3.4 3.9 4.1 Expected volatility 24.0 % 28.0 % 34.0 % |
Schedule of Number of Restricted Stock Units | Information on the number of RSUs and stock options related to the Plan during the period of 2013 to 2015 is as follows: RSUs 2015 2014 2013 Outstanding at beginning of year 198,285 204,277 211,618 Granted 74,908 64,223 91,230 Shares issued (58,186 ) (56,184 ) (84,342 ) Cancelled/Forfeited/Expired (10,455 ) (14,031 ) (14,229 ) Outstanding at end of year 204,552 198,285 204,277 |
Schedule of Stock Options | STOCK OPTIONS Number of options Weighted average 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 $ 59.20 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 Granted 187,996 113.51 Exercised (244,182 ) 68.82 Cancelled/Forfeited/Expired (9,588 ) 92.70 Outstanding at Dec 31, 2015 473,051 $ 87.88 |
Schedule of Options Exercisable | STOCK OPTIONS Number of options Weighted average 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 $ 59.20 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 Granted 187,996 113.51 Exercised (244,182 ) 68.82 Cancelled/Forfeited/Expired (9,588 ) 92.70 Outstanding at Dec 31, 2015 473,051 $ 87.88 OPTIONS EXERCISABLE At December 31, 2013 559,483 $ 54.34 At December 31, 2014 349,190 $ 57.08 At December 31, 2015 290,487 $ 71.76 |
Summary of Stock Options Outstanding and Exercisable | The following summarizes information about stock options outstanding and exercisable on December 31, 2015: RANGE OF EXERCISE PRICES Number Remaining Weighted $16.31 - $19.96 20,800 3.14 $ 16.31 $44.70 - $49.60 28,830 3.38 $ 45.60 $51.67 - $59.01 19,524 1.71 $ 54.73 $67.00 - $69.18 88,058 6.80 $ 68.44 $72.95 - $94.87 133,275 7.58 $ 90.77 $113.36 - $126.46 182,564 9.13 $ 113.51 473,051 7.34 $ 87.88 RANGE OF EXERCISE PRICES Number Remaining Weighted $16.31 - $19.96 20,800 3.14 $ 16.31 $44.70 - $49.60 28,830 3.38 $ 45.60 $51.67 - $59.01 19,524 1.71 $ 54.73 $67.00 - $69.18 88,058 6.80 $ 68.44 $72.95 - $94.87 133,275 7.58 $ 90.77 $113.36 - $126.46 — — — 290,487 6.22 $ 71.76 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Assumptions Used Benefit Obligations | ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31 U.S. % WEIGHTED AVERAGE 2015 2014 2013 Discount rate 4.00 5.00 4.05 Rate of increases in compensation level 3.50 3.50 3.50 Expected long-term rate of return on assets 7.08 7.08 7.50 |
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. 2015 2014 2015 2014 Benefit obligation at beginning of year $ 357.0 $ 265.8 $ 237.3 $ 205.0 Service cost 9.9 7.3 14.4 13.5 Interest cost 14.4 13.0 7.0 8.2 Actuarial (gain) loss due to: Change in discount rate (47.6 ) 58.9 (9.7 ) 40.4 Experience 9.6 (0.5 ) (7.7 ) 1.0 Other assumption changes (1.0 ) 18.4 (2.2 ) (1.9 ) Plan participants’ contributions — — 0.2 0.2 Plan amendments 0.3 — 0.2 0.9 Benefits paid (18.0 ) (5.9 ) (8.4 ) (8.3 ) Curtailments — — (0.8 ) 0.1 Special termination benefits — — 0.1 — Other — — (0.2 ) (0.5 ) Translation difference — — (14.4 ) (21.3 ) Benefit obligation at end of year $ 324.6 $ 357.0 $ 215.8 $ 237.3 Fair value of plan assets at beginning of year $ 253.8 $ 223.6 $ 108.0 $ 99.9 Actual return on plan assets (2.5 ) 29.4 (1.4 ) 14.2 Company contributions 6.7 6.7 9.6 9.4 Plan participants’ contributions — — 0.1 0.2 Benefits paid (18.0 ) (5.9 ) (8.4 ) (8.3 ) Other — — (0.2 ) (0.2 ) Translation difference — — (4.3) (7.2) Fair value of plan assets at year end $ 240.0 $ 253.8 $ 103.4 $ 108.0 Funded status recognized in the balance sheet $ (84.6 ) $ (103.2 ) $ (112.4 ) $ (129.3 ) |
Schedule of Components of Net Periodic Benefit Cost | COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS U.S. 2015 2014 2013 Service cost $ 9.9 $ 7.3 $ 9.3 Interest cost 14.4 13.0 12.8 Expected return on plan assets (17.5 ) (15.4 ) (11.6 ) Amortization of prior service credit (1.0 ) (1.0 ) (1.0 ) Amortization of actuarial loss 7.7 1.9 10.0 Net periodic benefit cost $ 13.5 $ 5.8 $ 19.5 COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS (CONTINUED) Non-U.S. 2015 2014 2013 Service cost $ 14.4 $ 13.5 $ 13.5 Interest cost 7.0 8.2 7.3 Expected return on plan assets (3.8 ) (4.5 ) (4.0 ) Amortization of prior service costs 0.3 0.3 0.2 Amortization of actuarial loss 3.1 1.1 2.5 Settlement loss (gain) 0.0 0.1 0.2 Curtailment loss (gain) 0.0 0.1 0.1 Special termination benefits 0.1 — 0.5 Net periodic benefit cost $ 21.1 $ 18.8 $ 20.3 |
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. 2015 2014 2015 2014 Net actuarial loss (gain) $ 79.9 $ 106.6 $ 31.9 $ 53.8 Prior service (credit) cost (0.6) (1.9) 2.3 2.6 Total accumulated other comprehensive income recognized in the balance sheet $ 79.3 $ 104.7 $ 34.2 $ 56.4 |
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. 2015 2014 2015 2014 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 104.7 $ 42.7 $ 56.4 $ 32.1 Net actuarial loss (gain) (19.0 ) 62.8 (14.9 ) 30.3 Prior service cost 0.3 — 0.2 0.9 Amortization of prior service credit (cost) 1.0 1.0 (0.3 ) (0.3 ) Amortization of actuarial loss (7.7 ) (1.8 ) (3.1 ) (1.2 ) Translation difference — — (4.1 ) (5.4 ) Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 79.3 $ 104.7 $ 34.2 $ 56.4 |
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. 2015 2014 2015 2014 Projected Benefit Obligation (PBO) $ 324.6 $ 357.0 $ 118.0 $ 155.4 Accumulated Benefit Obligation (ABO) $ 261.8 $ 278.5 $ 89.5 $ 124.1 Fair value of plan assets $ 240.0 $ 253.8 $ 4.3 $ 29.6 |
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 2015 2014 2015 2014 Discount rate 4.50 4.00 0.50 - 4.10 0.50 - 4.00 Rate of increases in compensation level 2.65 3.50 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 2015 2014 2015 2014 Equity securities 55 56 54 15 15 Debt instruments 45 43 46 65 63 Other assets — 1 — 20 22 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 Assets U.S. Equity Large Cap $ 88.1 $ 90.9 Mid Cap 10.1 10.7 Small Cap 10.3 10.7 Non-U.S. Equity 41.0 42.2 U.S. Bonds Aggregate 103.7 115.9 Non-U.S. Bonds Corporate 60.9 62.6 Aggregate 5.9 5.7 Insurance Contracts 13.9 15.7 Other Investments 9.5 7.4 Total $ 343.4 $ 361.8 |
Schedule of Expected Benefits Payments | PENSION BENEFITS EXPECTED PAYMENTS U.S. Non-U.S. 2016 $ 12.9 $ 5.9 2017 $ 13.7 $ 6.9 2018 $ 15.7 $ 7.7 2019 $ 17.6 $ 8.1 2020 $ 18.9 $ 9.9 Years 2021-2025 $ 126.6 $ 60.3 |
Non-U.S. Pension Plans | |
Schedule of Assumptions Used Benefit Obligations | Non-U.S. 1) % WEIGHTED AVERAGE 2015 2014 2013 Discount rate 0.50 - 4.00 1.00 - 5.00 1.50 - 4.50 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 2.60 - 6.15 3.00 - 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 2015 2014 2013 Benefit obligation at beginning of year $ 21.0 $ 34.3 $ 34.6 Service cost 0.5 1.3 1.4 Interest cost 0.8 1.6 1.4 Actuarial (gain) loss due to: Change in discount rate (1.2 ) 2.4 (3.7 ) Experience (0.9 ) (1.1 ) 1.0 Other assumption changes (0.9 ) 0.4 (1.0 ) Plan amendments (0.0 ) (17.2 ) — Benefits paid (0.2 ) (0.8 ) (0.3 ) Other 0.2 0.1 0.9 Benefit obligation at end of year $ 19.3 $ 21.0 $ 34.3 Fair value of plan assets at beginning of year $ — $ — $ — Company contributions 0.2 0.8 0.3 Benefits paid (0.2 ) (0.8 ) (0.3 ) Fair value of plan assets at end of year $ — $ — $ — Accrued postretirement benefit cost recognized in the balance sheet $ (19.3 ) $ (21.0 ) $ (34.3 ) |
Schedule of Components of Net Periodic Benefit Cost | COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS PERIOD ENDED DECEMBER 31 2015 2014 2013 Service cost $ 0.5 $ 1.3 $ 1.4 Interest cost 0.8 1.6 1.4 Amortization of prior service cost (2.2 ) (0.1 ) (0.1 ) Amortization of actuarial loss (0.1 ) (0.1 ) (0.1 ) Net periodic benefit (credit) cost $ (1.0 ) $ 2.7 $ 2.6 |
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. 2015 2014 2015 2014 Net actuarial loss (gain) $ (3.0 ) $ (0.7 ) $ (2.5 ) $ (1.7 ) Prior service cost (credit) (15.2 ) (17.3 ) (0.0 ) (0.0 ) Total accumulated other comprehensive income recognized in the balance sheet $ (18.2 ) $ (18.0 ) $ (2.5 ) $ (1.7 ) |
Schedule of Expected Benefits Payments | The estimated future benefit payments for the postretirement benefits reflect expected future service as appropriate. POSTRETIREMENT BENEFITS EXPECTED 2016 $ 0.6 2017 $ 0.6 2018 $ 0.7 2019 $ 0.7 2020 $ 0.8 Years 2021 - 2025 $ 4.9 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information Sales Including Intersegment Sales | NET SALES, INCLUDING INTERSEGMENT SALES 2015 2014 2013 Passive Safety $ 7,621.2 $ 7,800.1 $ 7,575.1 Electronics 1,588.7 1,488.9 1,258.6 Total segment sales 9,209.9 9,289.0 8,833.7 Corporate and other 14.7 20.1 21.5 Intersegment sales (55.0 ) (68.6 ) (51.8 ) Total net sales $ 9,169.6 $ 9,240.5 $ 8,803.4 |
Segment Information Income Before Income Taxes | INCOME BEFORE INCOME TAXES 2015 2014 2013 Passive Safety $ 669.2 $ 598.1 $ 619.9 Electronics 64.5 76.0 84.0 Segment operating income 733.7 674.1 703.9 Corporate and other (5.9 ) 48.5 57.5 Interest and other non-operating expenses, net (56.8 ) (62.5 ) (34.7 ) Income from equity method investments 4.7 6.9 7.3 Income before income taxes $ 675.7 $ 667.0 $ 734.0 |
Segment Information Capital Expenditures | CAPITAL EXPENDITURES 2015 2014 2013 Passive Safety $ 405.6 $ 389.0 $ 326.8 Electronics 53.2 64.1 57.4 Corporate and other 7.0 2.9 1.4 Total capital expenditures $ 465.8 $ 456.0 $ 385.6 |
Segment Information Depreciation and Amortization | DEPRECIATION AND AMORTIZATION 2015 2014 2013 Passive Safety $ 264.5 $ 254.6 $ 238.1 Electronics 49.3 45.2 38.6 Corporate and other 5.3 5.6 9.3 Total depreciation and amortization $ 319.1 $ 305.4 $ 286.0 |
Segment Information Segment Assets | SEGMENT ASSETS 2015 2014 Passive Safety $ 5,539.3 $ 5,782.3 Electronics 966.5 713.9 Segment assets $ 6,505.8 $ 6,496.2 Corporate and other 1) 1,019.7 946.7 Total assets $ 7,525.5 $ 7,442.9 1) Corporate and other assets mainly consist of cash and cash equivalents, income taxes and equity method investments. |
Schedule of Net Sales Attributed to Geographic Areas | NET SALES BY REGION 2015 2014 2013 Asia $ 3,077.4 $ 3,097.9 $ 2,974.1 Whereof: China 1,523.7 1,521.6 1,405.5 Japan 668.0 687.7 688.2 Rest of Asia 885.7 888.6 880.4 Americas 3,264.8 3,099.4 2,943.6 Europe 2,827.4 3,043.2 2,885.7 Total $ 9,169.6 $ 9,240.5 $ 8,803.4 |
Schedule of Net Sales By Product | NET SALES BY PRODUCT 2015 2014 2013 Airbag products 1) $ 5,036.2 $ 5,019.3 $ 4,822.8 Seatbelt products 1) 2,599.1 2,800.1 2,772.7 Passive safety electronic products 923.2 932.0 863.2 Active safety products 611.1 489.1 344.7 Total net sales $ 9,169.6 $ 9,240.5 $ 8,803.4 1) Including Corporate and other sales. |
Schedule of Long-Lived Assets | LONG-LIVED ASSETS 2015 2014 Asia $ 739 $ 696 Whereof: China 434 391 Japan 103 98 Rest of Asia 202 207 Americas 2,027 1,906 Europe 721 705 Total $ 3,487 $ 3,307 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Weighted Average Shares Used in Earnings Per Share Calculation | The weighted average shares used in calculating earnings per share were: 2015 2014 2013 Weighted average shares basic 88.2 92.1 95.5 Effect of dilutive securities: stock options/share awards 0.2 0.3 0.4 Weighted average shares diluted 88.4 92.4 95.9 |
Quarterly Financial Data (una48
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Unaudited Quarterly Financial Data | 2015 Q1 Q2 Q3 Q4 Net sales $ 2,174.1 $ 2,291.5 $ 2,184.5 $ 2,519.5 Gross profit 423.3 460.0 440.1 520.7 Income before taxes 64.5 194.5 151.8 264.9 Net income 35.7 136.8 99.1 185.9 Net income attributable to controlling interest 35.7 136.7 98.9 185.5 Earnings per share – basic $ 0.40 $ 1.55 $ 1.12 $ 2.11 – diluted $ 0.40 $ 1.55 $ 1.12 $ 2.10 Dividends paid $ 0.54 $ 0.56 $ 0.56 $ 0.56 2014 Q1 Q2 Q3 Q4 Net sales $ 2,295.8 $ 2,383.0 $ 2,208.0 $ 2,353.7 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 83.2 106.7 148.0 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 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Goodwill | $ 1,666,300,000 | $ 1,594,000,000 | $ 1,610,100,000 |
Impairments of goodwill | 0 | 0 | 0 |
Net transaction gains (losses) | (11,000,000) | (3,800,000) | (26,300,000) |
Passive Safety | |||
Significant Accounting Policies [Line Items] | |||
Goodwill | 1,400,000,000 | ||
Passive Safety | Morton International, Inc | |||
Significant Accounting Policies [Line Items] | |||
Goodwill | 1,200,000,000 | ||
Electronics | |||
Significant Accounting Policies [Line Items] | |||
Goodwill | $ 278,000,000 | $ 7,800,000 | $ 7,800,000 |
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 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | Aug. 17, 2015 | Dec. 31, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Payments to acquire business, cash paid | $ 98,900,000 | ||
M/A-COM Automotive Solutions Business | |||
Business Acquisition [Line Items] | |||
Payments to acquire business, cash paid | $ 98,900,000 | ||
Additional cash payment to acquire business based on achievement of revenue based earn-out targets | 30,000,000 | ||
Deferred purchase consideration | $ 14,600,000 | ||
Consultant service period | 2 years | ||
Business combination, net sales | $ 30,100,000 | ||
Business combination, operating income | 700,000 | ||
Inventory fair value step-up adjustments | 1,700,000 | ||
Business combination, acquired account receivables net | $ 11,500,000 | ||
Business combination, acquired account receivables gross | 12,200,000 | ||
Business combination, acquired account receivables not expected to be collected | 700,000 | ||
Earn-out | 25,000,000 | ||
Estimated undiscounted outcomes minimum | 18,000,000 | ||
Goodwill expected to be fully deductible for tax purposes | $ 84,500,000 | ||
M/A-COM Automotive Solutions Business | Customer Contract | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 37,200,000 | $ 37,200,000 | |
Intangible assets remaining useful life | 4 years | ||
Intangible assets, amortization method | Accelerated method | ||
M/A-COM Automotive Solutions Business | Technology And Intellectual Property | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | $ 7,000,000 | $ 7,000,000 | |
Intangible assets, amortization method | Straight-line | ||
Intangible assets useful life | 7 years 6 months |
Fair Value of Consideration Tra
Fair Value of Consideration Transferred (Detail) - USD ($) $ in Millions | Aug. 17, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Cash consideration | $ 98.9 | |
M/A-COM Automotive Solutions Business | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 98.9 | |
Earn-out | 25 | |
Deferred purchase consideration | 14.6 | |
Total consideration transferred | $ 138.5 |
Summary of Recognized Fair Valu
Summary of Recognized Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Aug. 17, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Goodwill | $ 1,666.3 | $ 1,594 | $ 1,610.1 | |
M/A-COM Automotive Solutions Business | ||||
Assets: | ||||
Receivables | $ 11.5 | |||
Inventories | 6 | |||
Other current assets | 0.1 | |||
Property, plant and equipment | 0.1 | |||
Intangibles | 44.2 | |||
Goodwill | 84.5 | |||
Total assets | 146.4 | |||
Liabilities: | ||||
Accounts payable | 7.6 | |||
Accrued expenses | 0.3 | |||
Total liabilities | 7.9 | |||
Net assets acquired | $ 138.5 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net change in cash flow hedges | $ 200,000 | ||
Other non-operating items, net | 5,600,000 | $ (3,900,000) | $ (5,700,000) |
Derivatives Designated as Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and losses reclassified from OCI and recognized in Consolidated Statement of Net Income, net | 400,000 | ||
Derivatives designated as hedging instruments outstanding | 0 | ||
Gain (loss) recognized in consolidated statement of net income | 0 | ||
Net change in cash flow hedges | 200,000 | ||
Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) recognized in consolidated statement of net income | 600,000 | ||
Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other non-operating items, net | $ (3,300,000) | $ 2,000,000 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |||
Derivatives Designated as Hedging Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Nominal volume | $ 69.3 | ||||
Derivative asset | 0.2 | ||||
Derivative liability | 0.3 | ||||
Not Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Nominal volume | 482.4 | $ 459.1 | |||
Derivative asset | 2.5 | 1.3 | |||
Derivative liability | 5.1 | 0.4 | |||
Less Than One Year | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Cash Flow Hedging | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Nominal volume | [1] | 58 | |||
Derivative asset | [1] | 0.2 | |||
Derivative liability | [1] | 0.2 | |||
Less Than Two Years | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Cash Flow Hedging | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Nominal volume | [1] | 11.3 | |||
Derivative asset | [1] | 0 | |||
Derivative liability | [1] | 0.1 | |||
Less Than Six Months | Not Designated as Hedging Instrument | Foreign Exchange Swaps | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Nominal volume | 482.4 | [2] | 459.1 | [3] | |
Derivative asset | 2.5 | [4] | 1.3 | [5] | |
Derivative liability | $ 5.1 | [6] | $ 0.4 | [7] | |
[1] | There is no netting since there are no offsetting contracts. | ||||
[2] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $435.8 million. | ||||
[3] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million. | ||||
[4] | Net amount after deducting for offsetting swaps under ISDA agreements is $2.4 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 $4.9 million. | ||||
[7] | Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 million. |
Financial Assets and Liabilit55
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Not Designated as Hedging Instrument - Other Current Assets Liabilities - Foreign Exchange Swaps - Fair Value, Measurements, Recurring - Less Than Six Months - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative notional volume, amount after offsetting swaps | $ 435.8 | $ 390.9 |
Derivative asset, amount after offsetting swaps | 2.4 | 1.3 |
Derivative liability, amount after offsetting swaps | $ 4.9 | $ 0.4 |
Fair Value of Debt (Detail)
Fair Value of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | |||
Long-term debt | [1] | $ 1,499.4 | $ 1,521.2 |
Long-term debt, fair value | 1,552.3 | 1,610.3 | |
Short-term debt | [1] | 39.6 | 79.6 |
Short-term debt, fair value | 39.6 | 79.6 | |
U.S. Private Placement - Long-Term Debt | |||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | |||
Long-term debt | [1] | 1,421.5 | 1,424.2 |
Long-term debt, fair value | 1,472.6 | 1,510.2 | |
Medium-term Notes | |||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | |||
Long-term debt | [1] | 77.8 | 83.2 |
Long-term debt, fair value | 79.6 | 86.3 | |
Other Long-Term Debt | |||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | |||
Long-term debt | [1] | 0.1 | 13.8 |
Long-term debt, fair value | 0.1 | 13.8 | |
Overdrafts and Other Short-Term Debt | |||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | |||
Short-term debt | [1] | 39.4 | 57.8 |
Short-term debt, fair value | 39.4 | 57.8 | |
Short-Term Portion of Long-Term Debt | |||
Carrying Amounts and Fair Values of Financial Instruments [Line Items] | |||
Short-term debt | [1] | 0.2 | 21.8 |
Short-term debt, fair value | $ 0.2 | $ 21.8 | |
[1] | Debt as reported in balance sheet. |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Income Before Income Tax [Line Items] | |||||||||||
U.S. | $ 143.8 | $ 59.5 | $ 169.4 | ||||||||
Non-U.S. | 531.9 | 607.5 | 564.6 | ||||||||
Income before income taxes | $ 264.9 | $ 151.8 | $ 194.5 | $ 64.5 | $ 203.3 | $ 156.5 | $ 122.9 | $ 184.3 | $ 675.7 | $ 667 | $ 734 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current U.S. federal | $ 68.9 | $ 32.2 | $ 42.7 |
Current Non-U.S. | 169.2 | 166.2 | 164.7 |
Current U.S. state and local | 4.2 | 0.4 | 1.6 |
Deferred U.S. federal | (9.3) | (3.2) | 11.7 |
Deferred Non-U.S. | (13.7) | 2.9 | 22.2 |
Deferred U.S. state and local | (1.1) | (0.5) | 1.2 |
Total income tax expense | $ 218.2 | $ 198 | $ 244.1 |
Effective Income Tax Rate (Deta
Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Effective Income Tax Rate [Line Items] | |||
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Foreign tax rate variances | (8.10%) | (8.50%) | (8.20%) |
Tax credits | (4.30%) | (4.90%) | (4.50%) |
Change in Valuation Allowances | 0.10% | 0.60% | 5.30% |
Current year losses with no benefit | 4.10% | 5.90% | 4.00% |
Net operating loss carry-forwards | (0.50%) | (0.00%) | (0.10%) |
Changes in tax reserves | 1.40% | (0.10%) | 1.10% |
Cost of double taxation | 2.70% | 2.10% | 0.60% |
Earnings of equity investments | (0.20%) | (0.40%) | (0.40%) |
Withholding taxes | 1.20% | 0.60% | 1.00% |
State taxes, net of federal benefit | 0.30% | 0.00% | 0.20% |
Other, net | 0.60% | (0.60%) | (0.80%) |
Effective income tax rate | 32.30% | 29.70% | 33.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | $ 311 | ||
Net operating loss carry-forwards with have no expiration date | $ 234 | ||
Net Operating loss carry-forwards, expiration date | 2,029 | ||
Tax credit carry-forwards | $ 64 | ||
Tax credit carry-forwards, expiration date | 2,021 | ||
Effective income tax rate | 32.30% | 29.70% | 33.20% |
Unrecognized tax benefits related to prior years | $ 21.4 | ||
Unrecognized accrued interest and penalties | $ 5.7 | $ 1.6 | |
Net increase to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years | 6.9 | ||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 28.3 | ||
Unrecognized tax benefits payable, current | 9.5 | ||
Unrecognized tax benefits payable, non-current | 18.8 | ||
Undistributed earnings of non-U.S. operations | $ 4,100 | ||
Minimum | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 20.00% | ||
Maximum | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 30.00% |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Unrecognized tax benefits at beginning of year | $ 21.5 | $ 22.7 | $ 14.7 |
Increases as a result of tax positions taken during a prior period | 2.5 | 0.6 | 7.2 |
Decreases as a result of tax positions taken during a prior period | (0.1) | 0 | (0.3) |
Increases as a result of tax positions taken during the current period | 5.7 | 3.1 | 2.9 |
Decreases as a result of tax positions taken during the current period | 0 | 0 | 0 |
Decreases relating to settlements with taxing authorities | (0.7) | (2.4) | (0.8) |
Decreases resulting from the lapse of the applicable statute of limitations | (2) | (1.2) | (0.6) |
Translation Difference | (1.7) | (1.3) | (0.4) |
Total unrecognized tax benefits at end of year | $ 25.2 | $ 21.5 | $ 22.7 |
Deferred Taxes (Detail)
Deferred Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ||||
Provisions | $ 90.6 | $ 90.6 | $ 97.2 | |
Costs capitalized for tax | 21.3 | 12 | 18.5 | |
Property, plant and equipment | 15.5 | 18.9 | 20.9 | |
Retirement Plans | 60.8 | 73.6 | 49.9 | |
Tax receivables, principally NOL's | 192.8 | 166.2 | 136.6 | |
Deferred tax assets before allowances | 381 | 361.3 | 323.1 | |
Valuation allowances | (177.7) | (150.1) | (115.5) | $ (44.8) |
Total | 203.3 | 211.2 | 207.6 | |
Acquired intangibles | (18.4) | (22) | (25.3) | |
Statutory tax allowances | (0.6) | (0.7) | (1.3) | |
Insurance deposit | (3.3) | (5) | (6.4) | |
Distribution taxes | (29.8) | (34) | (38.1) | |
Other | (2.9) | (2.6) | (3) | |
Total | (55) | (64.3) | (74.1) | |
Net deferred tax asset | $ 148.3 | $ 146.9 | $ 133.5 |
Valuation Allowance Against Def
Valuation Allowance Against Deferred Tax Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Allowance [Line Items] | |||
Allowances at beginning of year | $ 150.1 | $ 115.5 | $ 44.8 |
Benefits reserved current year | 53.7 | 55.2 | 76.1 |
Benefits recognized current year | (5.2) | (0.7) | (1.8) |
Write-offs and other changes | (0.2) | (3) | 0 |
Translation difference | (20.7) | (16.9) | (3.6) |
Allowances at end of year | $ 177.7 | $ 150.1 | $ 115.5 |
Receivables (Detail)
Receivables (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivables [Line Items] | |||
Receivables | $ 1,793.7 | $ 1,713.2 | $ 1,692.6 |
Allowance at beginning of year | (6.9) | (4.6) | (7.3) |
Reversal of allowance | 1.3 | 0.9 | 4.1 |
Addition to allowance | (1.9) | (4.1) | (2.2) |
Write-off against allowance | 0.8 | 0.6 | 0.9 |
Translation difference | 0.6 | 0.3 | (0.1) |
Allowance at end of year | (6.1) | (6.9) | (4.6) |
Total receivables, net of allowance | $ 1,787.6 | $ 1,706.3 | $ 1,688 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory [Line Items] | |||
Raw material | $ 339.9 | $ 312.2 | $ 314.8 |
Work in progress | 243.4 | 240.6 | 232.9 |
Finished products | 217.9 | 206 | 201.9 |
Inventories | 801.2 | 758.8 | 749.6 |
Inventory reserve at beginning of year | (83.3) | (87.8) | (83.5) |
Reversal of reserve | 4.3 | 5.1 | 5.1 |
Addition to reserve | (22.2) | (10.9) | (20.8) |
Write-off against reserve | 5 | 4 | 10.5 |
Translation difference | 6.4 | 6.3 | 0.9 |
Inventory reserve at end of year | (89.8) | (83.3) | (87.8) |
Total inventories, net of reserve | $ 711.4 | $ 675.5 | $ 661.8 |
Investments and Other Non-Cur66
Investments and Other Non-Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments and Other Non-current Assets | ||
Equity method investments | $ 22.9 | $ 26.8 |
Deferred tax assets | 141 | 139 |
Income tax receivables | 50.9 | 54.7 |
Other non-current assets | 41 | 34.8 |
Investments and other non-current assets | $ 255.8 | $ 255.3 |
Percentage of Ownership in Equi
Percentage of Ownership in Equity Method Investment (Detail) | Dec. 31, 2015 |
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% |
Investments and Other Non-Cur68
Investments and Other Non-Current Assets - Additional Information (Detail) | Dec. 31, 2015 |
EAK SNC 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 ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Land and land improvements | $ 106.6 | $ 106 |
Machinery and equipment | 3,179.7 | 3,160 |
Buildings | 765.9 | 813.2 |
Construction in progress | 284.6 | 263.2 |
Property, plant and equipment | 4,336.8 | 4,342.4 |
Less accumulated depreciation | (2,899.7) | (2,952.2) |
Net of depreciation | $ 1,437.1 | $ 1,390.2 |
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 Proper
Depreciation Included in Property Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 299.4 | $ 289.4 | $ 265.6 |
Cost of Sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 268.8 | 258.7 | 237.2 |
Selling, General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 7.3 | 8 | 8.2 |
Research, Development and Engineering Expenses, net | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 23.3 | $ 22.7 | $ 20.2 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 0 | $ 0 | $ 0 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Carrying amount at beginning of year | $ 1,594 | $ 1,610.1 |
Balance January 1, 2015 after goodwill reallocation | 1,594 | |
Acquisition | 84.5 | |
Translation differences | (12.2) | (16.1) |
Carrying amount at end of year | 1,666.3 | 1,594 |
Passive Safety Segment | ||
Goodwill [Line Items] | ||
Carrying amount at beginning of year | 1,586.2 | 1,602.3 |
Allocation of goodwill due to change in segment reporting as of January 1, 2015 | (185.7) | |
Balance January 1, 2015 after goodwill reallocation | 1,400.5 | |
Translation differences | (12.2) | (16.1) |
Carrying amount at end of year | 1,388.3 | 1,586.2 |
Electronics | ||
Goodwill [Line Items] | ||
Carrying amount at beginning of year | 7.8 | 7.8 |
Allocation of goodwill due to change in segment reporting as of January 1, 2015 | 185.7 | |
Balance January 1, 2015 after goodwill reallocation | 193.5 | |
Acquisition | 84.5 | |
Carrying amount at end of year | $ 278 | $ 7.8 |
Goodwill and Intangible Asset73
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Intangible Assets [Line Items] | |||
Acquisition | $ 84,500,000 | ||
Impairments of goodwill | 0 | $ 0 | $ 0 |
Intangible assets, carrying amount | 128,000,000 | 67,200,000 | |
Amortization expense on intangible assets | 19,600,000 | 16,000,000 | $ 20,400,000 |
2,016 | 30,900,000 | ||
2,017 | 25,700,000 | ||
2,018 | 25,100,000 | ||
2,019 | 22,000,000 | ||
2,020 | 15,800,000 | ||
Technology-Based Intangible Assets | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible assets, carrying amount | 83,000,000 | $ 67,000,000 | |
Contractual Relationship | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible assets, carrying amount | 32,000,000 | ||
M/A-COM Automotive Solutions Business | |||
Goodwill And Intangible Assets [Line Items] | |||
Acquisition | $ 84,500,000 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangibles (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortized Intangible, Gross carrying amount | $ 484.9 | $ 394.6 |
Amortized Intangible, Accumulated amortization | (356.9) | (327.4) |
Amortized Intangible, Carrying value | $ 128 | $ 67.2 |
Schedule of Changes in Balance
Schedule of Changes in Balance Sheet Position of Restructuring Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | $ 79.8 | $ 94.2 | $ 75.8 |
Provision/ Charge | 82.8 | 42.8 | 40.4 |
Provision/ Reversal | (2.9) | (2.3) | (4.9) |
Cash payments | (63.6) | (44.5) | (20.4) |
Translation difference | (8.2) | (10.4) | 3.3 |
Restructuring reserve, ending balance | 87.9 | 79.8 | 94.2 |
Restructuring employee-related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 79.6 | 93.9 | 74.9 |
Provision/ Charge | 82.6 | 42.6 | 40.4 |
Provision/ Reversal | (2.9) | (2.3) | (4.7) |
Cash payments | (63.4) | (44.2) | (20) |
Translation difference | (8.2) | (10.4) | 3.3 |
Restructuring reserve, ending balance | 87.7 | 79.6 | 93.9 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0.2 | 0.3 | 0.9 |
Provision/ Charge | 0.2 | 0.2 | |
Provision/ Reversal | 0 | 0 | (0.2) |
Cash payments | (0.2) | (0.3) | (0.4) |
Translation difference | 0 | 0 | |
Restructuring reserve, ending balance | $ 0.2 | $ 0.2 | $ 0.3 |
Summary of Change in Balance Sh
Summary of Change in Balance Sheet Position of Product-Related Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Liability Contingency [Line Items] | |||
Reserve at beginning of the year | $ 51.3 | $ 36.4 | $ 29.9 |
Change in reserve | 37.9 | 37.9 | 21.3 |
Cash payments | (26.5) | (20.9) | (15.2) |
Translation difference | (1.9) | (2.1) | 0.4 |
Reserve at end of the year | $ 60.8 | $ 51.3 | $ 36.4 |
Debt and Credit Agreements - Ad
Debt and Credit Agreements - Additional Information (Detail) SEK in Millions | Apr. 25, 2014USD ($) | Jul. 31, 2013USD ($) | Dec. 31, 2015USD ($)TrancheBank | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2011SEK | Dec. 31, 2015SEK | Dec. 31, 2014USD ($) | Jul. 31, 2013EUR (€) | Mar. 31, 2013USD ($) | Dec. 31, 2012SEK | |
Line of Credit Facility [Line Items] | ||||||||||||
Total short-term debt including DRD | $ 42,000,000 | |||||||||||
Short-term debt excluding commercial paper | 301,000,000 | |||||||||||
Short-term debt excluding commercial paper, utilized amount | $ 40,000,000 | |||||||||||
Weighted average interest rate on short-term debt | 4.00% | 4.00% | 4.10% | |||||||||
Long term debt issued | $ 1,250,000,000 | |||||||||||
Long term debt issued, average interest rate | 3.84% | |||||||||||
Total long-term debt including DRD | [1] | $ 1,499,400,000 | $ 1,521,200,000 | |||||||||
Long-term debt | 243,000,000 | |||||||||||
Senior notes | $ 165,000,000 | |||||||||||
Number of tranches of notes | Tranche | 2 | |||||||||||
Line of credit facility commitment fee percent | 0.16% | |||||||||||
Unutilized long-term debt facilities | $ 1,300,000,000 | |||||||||||
Money market funds | 623,000,000 | |||||||||||
Government paper | 200,000,000 | |||||||||||
Interest Rate Swaps | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Nominal value | $ 60,000,000 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Unused short-term lines of credit | 261,000,000 | |||||||||||
Banks Rated A- or Above | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Calculated risk amount | 150,000,000 | |||||||||||
Banks Rated BBB+ | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Calculated risk amount | $ 50,000,000 | |||||||||||
European Investment Bank | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility commitment fee percent | 0.30% | |||||||||||
Syndicated By Banks | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Number of banks syndicated on revolving credit facility | Bank | 13 | |||||||||||
Swedish Program | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Commercial paper | $ 838,000,000 | SEK 7,000 | ||||||||||
United States Program | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Commercial paper | 1,000,000,000 | |||||||||||
Senior Notes Five Year | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Long term debt issued | $ 208,000,000 | |||||||||||
Interest rate | 2.84% | |||||||||||
Long term debt maturity period | 5 years | |||||||||||
Senior Notes Seven Year | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Long term debt issued | $ 275,000,000 | |||||||||||
Interest rate | 3.51% | |||||||||||
Long term debt maturity period | 7 years | |||||||||||
Senior Notes Ten Year | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Long term debt issued | $ 297,000,000 | |||||||||||
Interest rate | 4.09% | |||||||||||
Long term debt maturity period | 10 years | |||||||||||
Senior Notes Twelve Year | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Long term debt issued | $ 285,000,000 | |||||||||||
Interest rate | 4.24% | |||||||||||
Long term debt maturity period | 12 years | |||||||||||
Senior Notes Fifteen Year | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Long term debt issued | $ 185,000,000 | |||||||||||
Interest rate | 4.44% | |||||||||||
Long term debt maturity period | 15 years | |||||||||||
Total Debt As Cash Flow Including Debt Related Derivatives | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Total long-term debt including DRD | [2] | 1,492,900,000 | ||||||||||
Long-term debt | [2] | 1,535,000,000 | ||||||||||
Fixed Rate Notes | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Long term debt issued | $ 42,000,000 | SEK 350 | ||||||||||
Long term debt maturity period | 5 years | |||||||||||
Fixed interest rate on notes and loans | 2.49% | 2.49% | ||||||||||
Debt instrument maturity | 2017-12 | |||||||||||
Loan Facilities | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility amount | 1,100,000,000 | |||||||||||
Financing Commitment Agreement | European Investment Bank | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility commitment fee percent | 0.26% | |||||||||||
Revolving credit facility amount | $ 219,000,000 | € 200,000,000 | ||||||||||
Line of credit facility non utilization fee percent | 0.13% | |||||||||||
Line of credit, amount outstanding | $ 0 | |||||||||||
Line of credit facility expiration period | 2016-01 | |||||||||||
Floating Interest Rate of STIBOR + 3.9% | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Notes repurchased | $ 36,000,000 | SEK 300 | ||||||||||
Floating Interest Rate of STIBOR + 0.95% | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Floating interest rates on notes | 0.95% | 0.95% | ||||||||||
Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Fixed interest rate on notes and loans | 6.10% | 6.10% | ||||||||||
Minimum | Interest Rate Swaps | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Fixed interest rate on notes and loans | 2.50% | 2.50% | ||||||||||
Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Fixed interest rate on notes and loans | 6.20% | 6.20% | ||||||||||
Maximum | Interest Rate Swaps | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Fixed interest rate on notes and loans | 5.40% | 5.40% | ||||||||||
Maximum | Commercial Paper | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Money market funds | $ 2,000,000,000 | |||||||||||
[1] | Debt as reported in balance sheet. | |||||||||||
[2] | Debt Related Derivatives (DRD), i.e. the fair value adjustments to the carrying value of the underlying debt associated with hedging. |
Debt Profile (Detail)
Debt Profile (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total long-term | [1] | $ 1,499.4 | $ 1,521.2 |
Total | 243 | ||
Total Debt As Reported | |||
Debt Instrument [Line Items] | |||
2,016 | 39.6 | ||
2,017 | 183.3 | ||
2,019 | 274.1 | ||
Thereafter | 1,042 | ||
Total long-term | 1,499.4 | ||
Total | $ 1,539 | ||
U.S. Private Placement Notes | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [2] | 3.90% | |
2,017 | [2] | $ 105 | |
2,019 | [2] | 268 | |
Thereafter | [2] | 1,042 | |
Total long-term | [2] | 1,415 | |
Total | [2] | $ 1,415 | |
Overdraft/Other Short-term Debt | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [2] | 2.40% | |
2,016 | [2] | $ 41.9 | |
Total | [2] | $ 41.9 | |
Medium-term Notes | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.60% | ||
2,017 | $ 77.8 | ||
Total long-term | 77.8 | ||
Total | $ 77.8 | ||
Other Long-term Loans, Including Current Portion | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 5.20% | ||
2,016 | $ 0.2 | ||
2,017 | 0.1 | ||
Total long-term | 0.1 | ||
Total | 0.3 | ||
Debt Related Derivatives Adjustment | |||
Debt Instrument [Line Items] | |||
2,016 | (2.5) | ||
2,017 | 0.4 | ||
2,019 | 6.1 | ||
Total long-term | 6.5 | ||
Total | 4 | ||
Total Debt As Cash Flow Including Debt Related Derivatives | |||
Debt Instrument [Line Items] | |||
2,016 | [2] | 42.1 | |
2,017 | [2] | 182.9 | |
2,019 | [2] | 268 | |
Thereafter | [2] | 1,042 | |
Total long-term | [2] | 1,492.9 | |
Total | [2] | $ 1,535 | |
[1] | Debt as reported in balance sheet. | ||
[2] | Debt Related Derivatives (DRD), i.e. the fair value adjustments to the carrying value of the underlying debt associated with hedging. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Dec. 31, 2007 | Dec. 31, 2000 | |
Shareholders' Equity [Line Items] | |||||||
Number of shares outstanding | 88,107,358 | ||||||
Maximum number of shares that may yet be purchased | 4,424,760 | ||||||
Stock repurchase program, number of remaining shares authorized to be repurchased | 10,000,000 | 37,500,000 | 10,000,000 | ||||
Aggregate number of shares repurchased | 43,100,000 | ||||||
Aggregate value of shares repurchased | $ 2,341 | ||||||
Common shares sold from treasury stock | 4,800,000 | ||||||
Repurchased shares remain in treasury stock | 14,700,000 | 14,100,000 | |||||
Equity Offering | |||||||
Shareholders' Equity [Line Items] | |||||||
Common shares sold from treasury stock | 23,600,000 | ||||||
Stock Incentive Plan | |||||||
Shareholders' Equity [Line Items] | |||||||
Common shares sold from treasury stock | 300,000 | 500,000 | 500,000 |
Schedule of Dividends Paid (Det
Schedule of Dividends Paid (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends [Line Items] | |||||||||||
Cash dividend paid per share | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.54 | $ 0.54 | $ 0.54 | $ 0.52 | $ 0.52 | $ 2.22 | $ 2.12 | $ 2 |
Cash dividend declared per share | $ 2.24 | $ 2.14 | $ 2.02 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative translation adjustments | [1] | $ (345.9) | $ (155.1) | $ 49.4 |
Net gain on cash flow hedge derivatives | [1] | 0.2 | ||
Net pension liability | [1] | (63) | (97.9) | (48.9) |
Purchase of subsidairy shares from non-controlling interest | [1] | 0.2 | ||
Total (ending balance) | [1] | (408.5) | (253) | 0.5 |
Deferred taxes on the pension liability | [1] | $ 29.8 | $ 43.4 | $ 21.4 |
[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 ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Repurchases [Line Items] | |||
Shares repurchased | 0.9 | 6.2 | 1.6 |
Cash paid for shares | $ 104.4 | $ 616 | $ 147.9 |
Schedule of Acquisitions and Di
Schedule of Acquisitions and Divestitures of Businesses, Net of Cash Acquired (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Cash Flow, Supplemental [Line Items] | ||
Fair value of assets acquired, excluding cash | $ (146.4) | |
Liabilities assumed | 7.9 | |
Fair value of earn-out and deferred purchase consideration | 39.6 | |
Total business combinations | (98.9) | |
Acquisition of additional interests in subsidiaries | (4.2) | |
Acquisition of businesses and interests in affiliates, net of cash acquired | $ (103.1) | |
Divestitures of business, net of cash disposed | $ 2.4 |
Schedule of Payments for Intere
Schedule of Payments for Interest and Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Line Items] | |||
Interest | $ 66 | $ 57 | $ 33 |
Income taxes | $ 214 | $ 206 | $ 206 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 16.72 | $ 17.35 | $ 15.61 |
Total stock compensation cost | $ 8.2 | $ 8.1 | $ 8.3 |
Total compensation cost related to non-vested awards | $ 7.9 | ||
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 | 6,187,925 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 4.5 | $ 4.4 | $ 4.3 |
Aggregate intrinsic value | $ 25.5 | ||
Weighted average grant date fair value of restricted stock unit granted | $ 105.87 | $ 88.54 | $ 64.59 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value | $ 17.4 | ||
Closing price per share | $ 124.77 | ||
Aggregate intrinsic value for stock options exercisable | $ 15.3 |
Assumption Used in Option-prici
Assumption Used in Option-pricing Valuation Model (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.10% | 1.10% | 0.90% |
Dividend yield | 2.30% | 2.30% | 2.30% |
Expected life in years | 3 years 4 months 24 days | 3 years 10 months 24 days | 4 years 1 month 6 days |
Expected volatility | 24.00% | 28.00% | 34.00% |
Schedule of Number of Restricte
Schedule of Number of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year | 198,285 | 204,277 | 211,618 |
Granted | 74,908 | 64,223 | 91,230 |
Shares issued | (58,186) | (56,184) | (84,342) |
Cancelled/Forfeited/Expired | (10,455) | (14,031) | (14,229) |
Outstanding at end of year | 204,552 | 198,285 | 204,277 |
Schedule of Number of Stock Opt
Schedule of Number of Stock Options (Detail) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options, Outstanding beginning balance | 538,825 | 831,701 | 1,012,230 |
Granted | 187,996 | 192,665 | 273,541 |
Exercised | (244,182) | (471,732) | (437,751) |
Cancelled/Forfeited/Expired | (9,588) | (13,809) | (16,319) |
Number of options, Outstanding ending balance | 473,051 | 538,825 | 831,701 |
Weighted average exercise price, Outstanding beginning balance | $ 70.38 | $ 59.20 | $ 53.91 |
Granted | 113.51 | 94.87 | 69.18 |
Exercised | 68.82 | 60.78 | 53.58 |
Cancelled/Forfeited/Expired | 92.70 | 66.23 | 49.25 |
Weighted average exercise price, Outstanding ending balance | $ 87.88 | $ 70.38 | $ 59.20 |
Schedule of Options Exercisable
Schedule of Options Exercisable (Detail) - Options Exercisable - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercisable, shares | 290,487 | 349,190 | 559,483 |
Weighted average exercise price | $ 71.76 | $ 57.08 | $ 54.34 |
Summary of Stock Options Outsta
Summary of Stock Options Outstanding and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number outstanding | shares | 473,051 |
Remaining contract life in years, Outstanding options | 7 years 4 months 2 days |
Number outstanding, Weighted average exercise price | $ 87.88 |
Number exercisable | shares | 290,487 |
Remaining contract life in years, Exercisable options | 6 years 2 months 19 days |
Number exercisable, Weighted average exercise price | $ 71.76 |
$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 | shares | 20,800 |
Remaining contract life in years, Outstanding options | 3 years 1 month 21 days |
Number outstanding, Weighted average exercise price | $ 16.31 |
Number exercisable | shares | 20,800 |
Remaining contract life in years, Exercisable options | 3 years 1 month 21 days |
Number exercisable, Weighted average exercise price | $ 16.31 |
$44.70-$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 | 44.70 |
Shares authorized under stock option plans, exercise price range, upper range limit | $ 49.60 |
Number outstanding | shares | 28,830 |
Remaining contract life in years, Outstanding options | 3 years 4 months 17 days |
Number outstanding, Weighted average exercise price | $ 45.60 |
Number exercisable | shares | 28,830 |
Remaining contract life in years, Exercisable options | 3 years 4 months 17 days |
Number exercisable, Weighted average exercise price | $ 45.60 |
$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 | shares | 19,524 |
Remaining contract life in years, Outstanding options | 1 year 8 months 16 days |
Number outstanding, Weighted average exercise price | $ 54.73 |
Number exercisable | shares | 19,524 |
Remaining contract life in years, Exercisable options | 1 year 8 months 16 days |
Number exercisable, Weighted average exercise price | $ 54.73 |
$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 | shares | 88,058 |
Remaining contract life in years, Outstanding options | 6 years 9 months 18 days |
Number outstanding, Weighted average exercise price | $ 68.44 |
Number exercisable | shares | 88,058 |
Remaining contract life in years, Exercisable options | 6 years 9 months 18 days |
Number exercisable, Weighted average exercise price | $ 68.44 |
$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 | shares | 133,275 |
Remaining contract life in years, Outstanding options | 7 years 6 months 29 days |
Number outstanding, Weighted average exercise price | $ 90.77 |
Number exercisable | shares | 133,275 |
Remaining contract life in years, Exercisable options | 7 years 6 months 29 days |
Number exercisable, Weighted average exercise price | $ 90.77 |
$113.36-$126.46 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range, lower range Limit | 113.36 |
Shares authorized under stock option plans, exercise price range, upper range limit | $ 126.46 |
Number outstanding | shares | 182,564 |
Remaining contract life in years, Outstanding options | 9 years 1 month 17 days |
Number outstanding, Weighted average exercise price | $ 113.51 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) BRL in Millions, $ in Millions | Jun. 06, 2012USD ($) | Mar. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2014BRL | Jun. 30, 2014USD ($)Defendant | Dec. 31, 2015USD ($)Defendant |
Loss Contingencies [Line Items] | ||||||
Cash paid for litigation settlements | $ 14.5 | |||||
Number of defendants in antitrust class actions | Defendant | 19 | |||||
United States District Court for Eastern District of Michigan | ||||||
Loss Contingencies [Line Items] | ||||||
Number of pending antitrust class actions | Defendant | 15 | |||||
Number of classes of plaintiffs | Defendant | 3 | |||||
Expense related settlement agreements | $ 77 | $ 65 | ||||
Total Settlement agreement | $ 81 | |||||
United States District Court for Eastern District of Michigan | Direct purchaser settlement class | ||||||
Loss Contingencies [Line Items] | ||||||
Expense related settlement agreements | 40 | |||||
Settlement agreements amount | $ 35.5 | |||||
United States District Court for Eastern District of Michigan | Auto dealer settlement class | ||||||
Loss Contingencies [Line Items] | ||||||
Expense related settlement agreements | 6 | |||||
United States District Court for Eastern District of Michigan | End-payor settlement class | ||||||
Loss Contingencies [Line Items] | ||||||
Expense related settlement agreements | $ 19 | |||||
Brazilian Subsidiaries | ||||||
Loss Contingencies [Line Items] | ||||||
Aggregate assessment for all alleged violations | $ 16.3 | BRL 63 | ||||
Ontario and Quebec Superior Court | ||||||
Loss Contingencies [Line Items] | ||||||
Number of pending antitrust class actions | Defendant | 4 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases Disclosure [Line Items] | |||
Rental expense for operating leases | $ 40.9 | $ 44.6 | $ 45.8 |
Operating lease, future minimum payment, total | 113.6 | ||
Operating lease, future minimum payment, 2016 | 35 | ||
Operating lease, future minimum payment, 2017 | 23.3 | ||
Operating lease, future minimum payment, 2018 | 18.2 | ||
Operating lease, future minimum payment, 2019 | 15.3 | ||
Operating lease, future minimum payment, 2020 | 9.5 | ||
Operating lease, future minimum payment, 2021 and thereafter | $ 12.3 | ||
Capital leases expiration date | Various dates through 2017 | ||
Maximum | |||
Leases Disclosure [Line Items] | |||
Operating leases expiration date | 2,045 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Retirement Plans [Line Items] | |||||
Contributions to defined contribution plans | $ 19.9 | $ 20.2 | $ 19.7 | ||
Minimum percentage for which multiemployer plans is funded | 100.00% | ||||
Contributions to multi-employer plans | $ 2.2 | $ 2.4 | $ 1.9 | ||
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 | 4.65% | 4.20% | |||
Average discount rate used to determine U.S. postretirement benefit cost | 4.20% | 5.05% | 4.25% | ||
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 | $ (0.9) | ||||
Expected amortization of net actuarial losses in next fiscal year | (4.4) | ||||
Net periodic benefit cost | 13.5 | $ 5.8 | $ 19.5 | ||
Defined benefit plans that will be amortized from other comprehensive income | $ 9.7 | ||||
Estimated remaining service lives of the plan participants, years | 11 years | ||||
Accumulated benefit obligation | $ 261.8 | $ 278.5 | |||
Targeted level of equity exposure | 55.00% | ||||
Expected long-term rate of return on assets | 7.08% | 7.08% | 7.50% | ||
Target allocation | 100.00% | ||||
Company contributions | $ 6.7 | $ 6.7 | |||
Expected contribution by the company over the next fiscal year | 6.8 | ||||
Plan amendment | 0.3 | ||||
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 | (1.6) | ||||
Net periodic benefit cost | 21.1 | 18.8 | $ 20.3 | ||
Defined benefit plans that will be amortized from other comprehensive income | 19 | ||||
Accumulated benefit obligation | 177.7 | 195.4 | |||
Company contributions | 9.6 | 9.4 | |||
Plan amendment | $ 0.2 | $ 0.9 | |||
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 | [1] | 2.60% | 2.60% | 3.00% | |
Non-U.S. Pension Plans | Maximum | |||||
Retirement Plans [Line Items] | |||||
Estimated remaining service lives of the plan participants, years | 21 years | ||||
Expected long-term rate of return on assets | [1] | 6.15% | 6.15% | 5.75% | |
UK | |||||
Retirement Plans [Line Items] | |||||
Target allocation | 100.00% | ||||
Company contributions | $ 1.4 | $ 1.5 | |||
Expected contribution by the company over the next fiscal year | $ 1.4 | ||||
UK | Debt Instruments | |||||
Retirement Plans [Line Items] | |||||
Percentage of total plan assets | 59.00% | ||||
Postretirement Benefits Other Than Pensions | |||||
Retirement Plans [Line Items] | |||||
Net periodic benefit cost | $ (1) | 2.7 | $ 2.6 | ||
Defined benefit plans that will be amortized from other comprehensive income | (2.5) | ||||
Company contributions | 0.2 | 0.8 | $ 0.3 | ||
Plan amendment | $ 0 | $ (17.2) | |||
[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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | $ 357 | $ 265.8 | |
Service cost | 9.9 | 7.3 | $ 9.3 |
Interest cost | 14.4 | 13 | 12.8 |
Change in discount rate | (47.6) | 58.9 | |
Experience | 9.6 | (0.5) | |
Other assumption changes | (1) | 18.4 | |
Plan amendments | 0.3 | ||
Benefits paid | (18) | (5.9) | |
Benefit obligation at end of year | 324.6 | 357 | 265.8 |
Fair value of plan assets at beginning of year | 253.8 | 223.6 | |
Actual return on plan assets | (2.5) | 29.4 | |
Company contributions | 6.7 | 6.7 | |
Benefits paid | (18) | (5.9) | |
Fair value of plan assets at end of year | 240 | 253.8 | 223.6 |
Funded status recognized in the balance sheet | (84.6) | (103.2) | |
Non-U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | 237.3 | 205 | |
Service cost | 14.4 | 13.5 | 13.5 |
Interest cost | 7 | 8.2 | 7.3 |
Change in discount rate | (9.7) | 40.4 | |
Experience | (7.7) | 1 | |
Other assumption changes | (2.2) | (1.9) | |
Plan participants' contributions | 0.2 | 0.2 | |
Plan amendments | 0.2 | 0.9 | |
Benefits paid | (8.4) | (8.3) | |
Curtailments | (0.8) | 0.1 | |
Special termination benefits | 0.1 | 0.5 | |
Other | (0.2) | (0.5) | |
Translation difference | (14.4) | (21.3) | |
Benefit obligation at end of year | 215.8 | 237.3 | 205 |
Fair value of plan assets at beginning of year | 108 | 99.9 | |
Actual return on plan assets | (1.4) | 14.2 | |
Company contributions | 9.6 | 9.4 | |
Plan participants' contributions | 0.1 | 0.2 | |
Benefits paid | (8.4) | (8.3) | |
Other | (0.2) | (0.2) | |
Translation difference | (4.3) | (7.2) | |
Fair value of plan assets at end of year | 103.4 | 108 | $ 99.9 |
Funded status recognized in the balance sheet | $ (112.4) | $ (129.3) |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 9.9 | $ 7.3 | $ 9.3 |
Interest cost | 14.4 | 13 | 12.8 |
Expected return on plan assets | (17.5) | (15.4) | (11.6) |
Amortization of prior service cost | (1) | (1) | (1) |
Amortization of actuarial loss | 7.7 | 1.9 | 10 |
Net periodic benefit (credit) cost | 13.5 | 5.8 | 19.5 |
Non-U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 14.4 | 13.5 | 13.5 |
Interest cost | 7 | 8.2 | 7.3 |
Expected return on plan assets | (3.8) | (4.5) | (4) |
Amortization of prior service cost | 0.3 | 0.3 | 0.2 |
Amortization of actuarial loss | 3.1 | 1.1 | 2.5 |
Settlement loss (gain) | 0 | 0.1 | 0.2 |
Curtailment loss (gain) | 0 | 0.1 | 0.1 |
Special termination benefits | 0.1 | 0.5 | |
Net periodic benefit (credit) cost | 21.1 | 18.8 | 20.3 |
Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0.5 | 1.3 | 1.4 |
Interest cost | 0.8 | 1.6 | 1.4 |
Amortization of prior service cost | (2.2) | (0.1) | (0.1) |
Amortization of actuarial loss | (0.1) | (0.1) | (0.1) |
Net periodic benefit (credit) cost | $ (1) | $ 2.7 | $ 2.6 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Income Before Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 79.9 | $ 106.6 | |
Prior service (credit) cost | (0.6) | (1.9) | |
Total accumulated other comprehensive income recognized in the balance sheet | 79.3 | 104.7 | $ 42.7 |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 31.9 | 53.8 | |
Prior service (credit) cost | 2.3 | 2.6 | |
Total accumulated other comprehensive income recognized in the balance sheet | 34.2 | 56.4 | $ 32.1 |
U.S. Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (3) | (0.7) | |
Prior service (credit) cost | (15.2) | (17.3) | |
Total accumulated other comprehensive income recognized in the balance sheet | (18.2) | (18) | |
Non-U.S. Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (2.5) | (1.7) | |
Prior service (credit) cost | 0 | 0 | |
Total accumulated other comprehensive income recognized in the balance sheet | $ (2.5) | $ (1.7) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income Before Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | $ 104.7 | $ 42.7 |
Net actuarial loss (gain) | (19) | 62.8 |
Prior service cost | 0.3 | |
Amortization of prior service credit (cost) | 1 | 1 |
Amortization of actuarial loss | (7.7) | (1.8) |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | 79.3 | 104.7 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | 56.4 | 32.1 |
Net actuarial loss (gain) | (14.9) | 30.3 |
Prior service cost | 0.2 | 0.9 |
Amortization of prior service credit (cost) | (0.3) | (0.3) |
Amortization of actuarial loss | (3.1) | (1.2) |
Translation difference | (4.1) | (5.4) |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | $ 34.2 | $ 56.4 |
Pension Plans for which ABO exc
Pension Plans for which ABO exceeds Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | $ 324.6 | $ 357 |
Accumulated Benefit Obligation (ABO) | 261.8 | 278.5 |
Fair value of plan assets | 240 | 253.8 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | 118 | 155.4 |
Accumulated Benefit Obligation (ABO) | 89.5 | 124.1 |
Fair value of plan assets | $ 4.3 | $ 29.6 |
Assumptions to Determine Benefi
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Detail) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | 4.50% | 4.00% | ||
Benefit Obligation rate of increases in compensation level | 2.65% | 3.50% | ||
Net periodic benefit cost discount rate | 4.00% | 5.00% | 4.05% | |
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% | 7.08% | 7.50% | |
Non-U.S. Pension Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | [1] | 0.50% | 0.50% | |
Benefit Obligation rate of increases in compensation level | [1] | 2.25% | 2.25% | |
Net periodic benefit cost discount rate | [1] | 0.50% | 1.00% | 1.50% |
Net periodic benefit cost rate of increases in compensation level | [1] | 2.25% | 2.25% | 2.25% |
Expected long-term rate of return on assets | [1] | 2.60% | 2.60% | 3.00% |
Non-U.S. Pension Plans | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | [1] | 4.10% | 4.00% | |
Benefit Obligation rate of increases in compensation level | [1] | 5.00% | 5.00% | |
Net periodic benefit cost discount rate | [1] | 4.00% | 5.00% | 4.50% |
Net periodic benefit cost rate of increases in compensation level | [1] | 5.00% | 5.00% | 5.00% |
Expected long-term rate of return on assets | [1] | 6.15% | 6.15% | 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. |
Assumptions to Determine Ben100
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Non-U.S. Pension Plans | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Projected benefit obligation | 90.00% |
Fair Value of Total Plan Assets
Fair Value of Total Plan Assets (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 56.00% | 54.00% |
U.S. Pension Plans | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 45.00% | |
Fair Value allocation | 43.00% | 46.00% |
U.S. Pension Plans | Other Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 1.00% | |
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 | 65.00% | 63.00% |
Non-U.S. Pension Plans | Other Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 20.00% | 22.00% |
Summary of Fair Value of Compan
Summary of Fair Value of Company's Plan Assets (Detail) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of plan assets | $ 343.4 | $ 361.8 |
U.S. Equity | Large Cap | ||
Fair value of plan assets | 88.1 | 90.9 |
U.S. Equity | Mid Cap | ||
Fair value of plan assets | 10.1 | 10.7 |
U.S. Equity | Small Cap | ||
Fair value of plan assets | 10.3 | 10.7 |
Non-U.S. Equity | ||
Fair value of plan assets | 41 | 42.2 |
U.S. Bonds | Aggregate | ||
Fair value of plan assets | 103.7 | 115.9 |
Non-U.S. Bonds | Aggregate | ||
Fair value of plan assets | 5.9 | 5.7 |
Non-U.S. Bonds | Corporate | ||
Fair value of plan assets | 60.9 | 62.6 |
Insurance Contracts | ||
Fair value of plan assets | 13.9 | 15.7 |
Other Investment | ||
Fair value of plan assets | $ 9.5 | $ 7.4 |
Estimated Future Benefit Expect
Estimated Future Benefit Expected Payments (Detail) $ in Millions | Dec. 31, 2015USD ($) |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 12.9 |
2,017 | 13.7 |
2,018 | 15.7 |
2,019 | 17.6 |
2,020 | 18.9 |
Years 2021 - 2025 | 126.6 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 5.9 |
2,017 | 6.9 |
2,018 | 7.7 |
2,019 | 8.1 |
2,020 | 9.9 |
Years 2021 - 2025 | 60.3 |
Postretirement Benefits Other Than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 0.6 |
2,017 | 0.6 |
2,018 | 0.7 |
2,019 | 0.7 |
2,020 | 0.8 |
Years 2021 - 2025 | $ 4.9 |
Changes Benefit Obligation and
Changes Benefit Obligation and Plan Assets (Detail) - Postretirement Benefits Other Than Pensions - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Retirement Plans [Line Items] | |||
Benefit obligation at beginning of year | $ 21 | $ 34.3 | $ 34.6 |
Service cost | 0.5 | 1.3 | 1.4 |
Interest cost | 0.8 | 1.6 | 1.4 |
Change in discount rate | (1.2) | 2.4 | (3.7) |
Experience | (0.9) | (1.1) | 1 |
Other assumption changes | (0.9) | 0.4 | (1) |
Plan amendments | 0 | (17.2) | |
Benefits paid | (0.2) | (0.8) | (0.3) |
Other | 0.2 | 0.1 | 0.9 |
Benefit obligation at end of year | 19.3 | 21 | 34.3 |
Fair value of plan assets at beginning of year | 0 | 0 | 0 |
Company contributions | 0.2 | 0.8 | 0.3 |
Benefits paid | (0.2) | (0.8) | (0.3) |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Accrued postretirement benefit cost recognized in the balance sheet | $ (19.3) | $ (21) | $ (34.3) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 2 | ||
Long-lived assets, Total | $ 3,487 | $ 3,307 | |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
External sales | 2,469 | 2,269 | $ 2,122 |
Long-lived assets, Total | 1,863 | 1,733 | |
Long-lived intangible assets from acquisition goodwill | 1,595 | 1,476 | |
Exports from U.S. to other Regions | |||
Segment Reporting Information [Line Items] | |||
External sales | $ 527 | $ 459 | $ 488 |
Customer Concentration Risk | Sales | GM | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 12.00% | 14.00% | 14.00% |
Customer Concentration Risk | Sales | Renault | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 12.00% | 11.00% | 11.00% |
Customer Concentration Risk | Sales | Ford | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 10.00% | 11.00% | 11.00% |
Segment Information Sales Inclu
Segment Information Sales Including Intersegment Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | $ 2,519.5 | $ 2,184.5 | $ 2,291.5 | $ 2,174.1 | $ 2,353.7 | $ 2,208 | $ 2,383 | $ 2,295.8 | $ 9,169.6 | $ 9,240.5 | $ 8,803.4 |
Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 9,209.9 | 9,289 | 8,833.7 | ||||||||
Operating Segments | Passive Safety | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 7,621.2 | 7,800.1 | 7,575.1 | ||||||||
Operating Segments | Electronics | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 1,588.7 | 1,488.9 | 1,258.6 | ||||||||
Corporate and other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | 14.7 | 20.1 | 21.5 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net sales | $ (55) | $ (68.6) | $ (51.8) |
Segment Information Income Befo
Segment Information Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Segment operating income | $ 727.8 | $ 722.6 | $ 761.4 | ||||||||
Interest and other non-operating expenses, net | (56.8) | (62.5) | (34.7) | ||||||||
Income from equity method investments | 4.7 | 6.9 | 7.3 | ||||||||
Income before income taxes | $ 264.9 | $ 151.8 | $ 194.5 | $ 64.5 | $ 203.3 | $ 156.5 | $ 122.9 | $ 184.3 | 675.7 | 667 | 734 |
Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Segment operating income | 733.7 | 674.1 | 703.9 | ||||||||
Operating Segments | Passive Safety | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Segment operating income | 669.2 | 598.1 | 619.9 | ||||||||
Operating Segments | Electronics | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Segment operating income | 64.5 | 76 | 84 | ||||||||
Corporate and other | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Segment operating income | $ (5.9) | $ 48.5 | $ 57.5 |
Segment Information Capital Exp
Segment Information Capital Expenditures (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 465.8 | $ 456 | $ 385.6 |
Corporate and other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 7 | 2.9 | 1.4 |
Passive Safety | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 405.6 | 389 | 326.8 |
Electronics | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 53.2 | $ 64.1 | $ 57.4 |
Segment Information Depreciatio
Segment Information Depreciation and Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | $ 319.1 | $ 305.4 | $ 286 |
Corporate and other | |||
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | 5.3 | 5.6 | 9.3 |
Passive Safety | |||
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | 264.5 | 254.6 | 238.1 |
Electronics | |||
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | $ 49.3 | $ 45.2 | $ 38.6 |
Segment Information Segment Ass
Segment Information Segment Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 7,525.5 | $ 7,442.9 | |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 6,505.8 | 6,496.2 | |
Operating Segments | Passive Safety | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 5,539.3 | 5,782.3 | |
Operating Segments | Electronics | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 966.5 | 713.9 | |
Corporate and other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 1,019.7 | $ 946.7 |
[1] | Corporate and other assets mainly consist of cash and cash equivalents, income taxes and equity method investments. |
Net Sales by Geographical Area
Net Sales by Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,519.5 | $ 2,184.5 | $ 2,291.5 | $ 2,174.1 | $ 2,353.7 | $ 2,208 | $ 2,383 | $ 2,295.8 | $ 9,169.6 | $ 9,240.5 | $ 8,803.4 |
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,077.4 | 3,097.9 | 2,974.1 | ||||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,523.7 | 1,521.6 | 1,405.5 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 668 | 687.7 | 688.2 | ||||||||
Rest of Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 885.7 | 888.6 | 880.4 | ||||||||
Continents of North and South America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,264.8 | 3,099.4 | 2,943.6 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,827.4 | $ 3,043.2 | $ 2,885.7 |
Net Sales by Product (Detail)
Net Sales by Product (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 2,519.5 | $ 2,184.5 | $ 2,291.5 | $ 2,174.1 | $ 2,353.7 | $ 2,208 | $ 2,383 | $ 2,295.8 | $ 9,169.6 | $ 9,240.5 | $ 8,803.4 | |
Airbag Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 5,036.2 | 5,019.3 | 4,822.8 | ||||||||
Seatbelt Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 2,599.1 | 2,800.1 | 2,772.7 | ||||||||
Passive Safety Electronic Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 923.2 | 932 | 863.2 | |||||||||
Active Safety Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 611.1 | $ 489.1 | $ 344.7 | |||||||||
[1] | Including Corporate and other sales. |
Long-lived Assets by Geographic
Long-lived Assets by Geographical Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $ 3,487 | $ 3,307 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 739 | 696 |
China | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 434 | 391 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 103 | 98 |
Rest of Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 202 | 207 |
Continents of North and South America | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 2,027 | 1,906 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $ 721 | $ 705 |
Schedule of Actual Weighted Ave
Schedule of Actual Weighted Average Shares Used in Calculating Earnings Per Share (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | |||
Weighted average shares basic | 88.2 | 92.1 | 95.5 |
Effect of dilutive securities: | |||
stock options/share awards | 0.2 | 0.3 | 0.4 |
Weighted average shares diluted | 88.4 | 92.4 | 95.9 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Basic And Diluted [Line Items] | |||
Potentially dilutive shares | 2,000 | 0 | 0 |
Quarterly Financial Information
Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Quarterly Financial Data [Line Items] | ||||||||||||||
Net sales | $ 2,519.5 | $ 2,184.5 | $ 2,291.5 | $ 2,174.1 | $ 2,353.7 | $ 2,208 | $ 2,383 | $ 2,295.8 | $ 9,169.6 | $ 9,240.5 | $ 8,803.4 | |||
Gross profit | 520.7 | 440.1 | 460 | 423.3 | 467.9 | 426.4 | 464.2 | 445.3 | 1,844.1 | 1,803.8 | 1,704.6 | |||
Income before taxes | 264.9 | 151.8 | 194.5 | 64.5 | 203.3 | 156.5 | 122.9 | 184.3 | 675.7 | 667 | 734 | |||
Net income | 185.9 | 99.1 | 136.8 | 35.7 | 148 | 106.7 | 83.2 | 131.1 | 457.5 | [1] | 469 | [1] | 489.9 | [1] |
Net income attributable to controlling interest | $ 185.5 | $ 98.9 | $ 136.7 | $ 35.7 | $ 148.2 | $ 106.5 | $ 82.8 | $ 130.3 | $ 456.8 | $ 467.8 | $ 485.8 | |||
Earnings per share - basic | $ 2.11 | $ 1.12 | $ 1.55 | $ 0.40 | $ 1.65 | $ 1.16 | $ 0.89 | $ 1.39 | $ 5.18 | $ 5.08 | $ 5.09 | |||
Earnings per share - diluted | 2.10 | 1.12 | 1.55 | 0.40 | 1.65 | 1.16 | 0.89 | 1.38 | 5.17 | 5.06 | 5.07 | |||
Dividends paid | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.54 | $ 0.54 | $ 0.54 | $ 0.52 | $ 0.52 | $ 2.22 | $ 2.12 | $ 2 | |||
[1] | See Note 13 for further details - includes tax effects where applicable. |