Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 19, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ALV | |
Entity Registrant Name | AUTOLIV INC | |
Entity Central Index Key | 1,034,670 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 88,218,525 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales | $ 2,578.5 | $ 2,291.5 | $ 5,008.5 | $ 4,465.6 |
Cost of sales | (2,052) | (1,831.5) | (3,981) | (3,582.3) |
Gross profit | 526.5 | 460 | 1,027.5 | 883.3 |
Selling, general and administrative expenses | (120.3) | (101.2) | (233.4) | (201.8) |
Research, development and engineering expenses, net | (176.4) | (140.3) | (335.2) | (266.8) |
Amortization of intangibles | (11.9) | (3.3) | (19.8) | (7) |
Other expense, net | (5.2) | (6.5) | (21.2) | (119) |
Operating income | 212.7 | 208.7 | 417.9 | 288.7 |
Income from equity method investments | 0.1 | 1.6 | 0.7 | 2.9 |
Interest income | 0.9 | 0.6 | 2.1 | 1 |
Interest expense | (15.6) | (16.9) | (31.1) | (34) |
Other non-operating items, net | 2.3 | 0.5 | 1.1 | 0.4 |
Income before income taxes | 200.4 | 194.5 | 390.7 | 259 |
Income tax expense | (52) | (57.7) | (108.8) | (86.5) |
Net income | 148.4 | 136.8 | 281.9 | 172.5 |
Less: Net income attributable to non-controlling interest | 0 | 0.1 | 0.3 | 0.1 |
Net income attributable to controlling interest | $ 148.4 | $ 136.7 | $ 281.6 | $ 172.4 |
Net earnings per share - basic | $ 1.68 | $ 1.55 | $ 3.19 | $ 1.95 |
Net earnings per share - diluted | $ 1.68 | $ 1.55 | $ 3.19 | $ 1.95 |
Weighted average number of shares outstanding, net of treasury shares (in millions) | 88.2 | 88 | 88.2 | 88.2 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | 88.4 | 88.3 | 88.4 | 88.4 |
Number of shares outstanding, excluding dilution and net of treasury shares (in millions) | 88.2 | 88.1 | 88.2 | 88.1 |
Cash dividend per share - declared | $ 0.58 | $ 0.56 | $ 1.16 | $ 1.12 |
Cash dividend per share - paid | $ 0.58 | $ 0.56 | $ 1.14 | $ 1.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 148.4 | $ 136.8 | $ 281.9 | $ 172.5 |
Other comprehensive income (loss) before tax: | ||||
Change in cumulative translation adjustments | (21.2) | 20.1 | 38.6 | (90.7) |
Net change in cash flow hedges | 5 | (0.6) | 3.5 | (0.6) |
Net change in unrealized components of defined benefit plans | 0.9 | 2.1 | 2 | 4.3 |
Other comprehensive income (loss), before tax | (15.3) | 21.6 | 44.1 | (87) |
Tax effect allocated to other comprehensive income (loss) | (1.4) | (0.4) | (1.4) | (1.1) |
Other comprehensive income (loss), net of tax | (16.7) | 21.2 | 42.7 | (88.1) |
Comprehensive income | 131.7 | 158 | 324.6 | 84.4 |
Less: Comprehensive income attributable to non-controlling interest | 9.5 | 0.1 | 10 | 0.1 |
Comprehensive income attributable to controlling interest | $ 122.2 | $ 157.9 | $ 314.6 | $ 84.3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets | |||
Cash and cash equivalents | $ 1,113.1 | $ 1,333.5 | |
Receivables, net | 2,092 | 1,787.6 | |
Inventories, net | 750.4 | 711.4 | |
Other current assets | 167 | 205.8 | |
Total current assets | 4,122.5 | 4,038.3 | |
Property, plant and equipment, net | 1,616.3 | 1,437.1 | |
Investments and other non-current assets | 354.2 | 255.8 | |
Goodwill | 1,894.2 | 1,666.3 | |
Intangible assets, net | 257.1 | 128 | |
Total assets | 8,244.3 | 7,525.5 | |
Liabilities and equity | |||
Short-term debt | [1] | 95.4 | 39.6 |
Accounts payable | 1,281.9 | 1,169.6 | |
Accrued expenses | 876.8 | 755.6 | |
Other current liabilities | 213.7 | 261.6 | |
Total current liabilities | 2,467.8 | 2,226.4 | |
Long-term debt | [1] | 1,460 | 1,499.4 |
Pension liability | 216.4 | 197 | |
Other non-current liabilities | 147.7 | 134.6 | |
Total non-current liabilities | 1,824.1 | 1,831 | |
Common stock | 102.8 | 102.8 | |
Additional paid-in capital | 1,329.3 | 1,329.3 | |
Retained earnings | 3,678.7 | 3,499.4 | |
Accumulated other comprehensive (loss) income | (375.5) | (408.5) | |
Treasury stock | (1,058.5) | (1,067.4) | |
Total controlling interest | 3,676.8 | 3,455.6 | |
Non-controlling interest | 275.6 | 12.5 | |
Total equity | 3,952.4 | 3,468.1 | |
Total liabilities and equity | $ 8,244.3 | $ 7,525.5 | |
[1] | Debt as reported in balance sheet. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net income | $ 281.9 | $ 172.5 |
Depreciation and amortization | 181.8 | 149.5 |
Other, net | 3.5 | (14.7) |
Changes in operating assets and liabilities | (164.1) | (69.4) |
Net cash provided by operating activities | 303.1 | 237.9 |
Investing activities | ||
Expenditures for property, plant and equipment | (223.5) | (250) |
Proceeds from sale of property, plant and equipment | 2.4 | 12.7 |
Acquisitions and divestitures of businesses and other, net | (227.8) | (9) |
Net cash used in investing activities | (448.9) | (246.3) |
Financing activities | ||
Net decrease (increase) in short-term debt | 16.4 | 21.6 |
Repayments and other changes in long-term debt | (8.4) | |
Dividends paid to non-controlling interest | (1.7) | |
Dividends paid | (100.5) | (97.1) |
Repurchased shares | (104.4) | |
Common stock options exercised | 4.6 | 15.6 |
Other, net | 0.5 | 0.1 |
Net cash used in financing activities | (80.7) | (172.6) |
Effect of exchange rate changes on cash and cash equivalents | 6.1 | (24.7) |
Decrease in cash and cash equivalents | (220.4) | (205.7) |
Cash and cash equivalents at beginning of period | 1,333.5 | 1,529 |
Cash and cash equivalents at end of period | $ 1,113.1 | $ 1,323.3 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation | 1 Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited financial statements and all adjustments considered necessary for a fair presentation have been included in the financial statements. All such adjustments are of a normal recurring nature. The result for the interim period is not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2016. The Condensed Consolidated Balance Sheet at December 31, 2015 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 19, 2016. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Recently Issued Accounting Pronouncements | 2 Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU 2016-13) In March 2016, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30) |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations | 3 Business Combinations Autoliv-Nissin Brake Systems On March 31, 2016, the Company acquired a 51% interest in the entities that formed Autoliv-Nissin Brake Systems (ANBS) for approximately $264 million in cash. ANBS designs, manufactures and sells products in the brake control and actuation systems business. Nissin Kogyo retained a 49% interest in the entities that formed ANBS. The Company has management and operational control and will consolidate the results of operations and balance sheet of ANBS. The transaction was accounted for as a business combination. The acquisition combines Nissin Kogyo’s world leading expertise and technology in brake control and actuation systems with Autoliv’s global reach and customer base to create a global competitive offering in the growing global brake control systems market. ANBS will also further strengthen the Company’s role as a leading system supplier of products and systems for autonomous driving vehicles. The operating results of the ANBS business have been included in the Consolidated Statements of Net Income since the date of the acquisition. ANBS is included in the Electronics segment. From the date of the acquisition through June 30, 2016, the ANBS business reported net sales of $137 million and a break even operating income. Operating income from the date of the acquisition through June 30, 2016 included $1.3 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 were $1.3 million. Total ANBS acquisition related costs were approximately $3.5 million for the year ended December 31, 2015 and approximately $2.0 million for the six months ended June 30, 2016 and were reflected in Selling, general and administrative expenses in the Consolidated Statements of Net Income. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented. The acquisition date fair value of the consideration transferred for the Company’s 51% interest in the entities that formed ANBS was $264.3 million in a cash transaction. The following table summarizes the preliminary fair values of identifiable assets acquired and liabilities assumed as of March 31, 2016 that are reflected in the Company’s Consolidated Balance Sheet: Amounts recognized as of acquisition date March 31, 2016 (in millions) Assets: Cash and cash equivalents $ 37.7 Receivables 1.5 Inventories 32.9 Other current assets 7.6 Property, plant and equipment 115.0 Other non-current assets 0.7 Intangibles 131.8 Goodwill 221.4 Total assets $ 548.6 Liabilities: Accounts payable $ 5.9 Other current liabilities 16.1 Pension liabilities 8.3 Total liabilities $ 30.3 Net assets acquired $ 518.3 Less: Non-controlling interest $ (254.0 ) Controlling interest $ 264.3 Acquired Intangibles primarily consist of the fair value of customer contracts of $64.9 million and certain technology of $59.6 million. The customer contracts will be amortized straight-line over 7 years and the technology will be amortized straight-line over 10 years. The recognized goodwill of $221.4 million reflects expected synergies from combining Autoliv’s global reach and customer base with Nissin Kogyo’s world leading expertise (including workforce) and technology in brake control and actuation systems. A significant portion of the goodwill is deductible for tax purposes. The fair values recognized for the acquired assets, assumed liabilities and goodwill are preliminary pending finalization of valuation process. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurement | 4 Fair Value Measurement Assets and liabilities measured at fair value on a recurring basis The carrying value of cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and short-term debt approximate their fair value because of the short term maturity of these instruments. The fair value of the contingent consideration relating to the M/A-COM acquisition in August 2015 is re-measured on a recurring basis (for further information, see the Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 19, 2016). As of June 30, 2016, there was no material change in the fair value of this contingent consideration. 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 risk policy. The derivatives outstanding at June 30, 2016 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 foreign exchange 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 Other Comprehensive Income (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 Statements of Net Income during the first six months of 2016. Any ineffectiveness in the first six months of 2016 was not material. The Company’s derivatives are all classified as Level 2 of the fair value hierarchy and there have been no transfers between the levels during this or comparable periods. The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheet at June 30, 2016 and in the Consolidated Balance Sheet at December 31, 2015, have been presented on a gross basis. The amounts subject to netting agreements that the Company chose not to offset are presented below. 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. June 30, 2016 Fair Value Description Nominal Derivative Derivative Balance sheet location Derivatives designated as hedging instruments 1) Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 64.2 $ 2.1 $ 0.0 Other current assets/ Other Foreign exchange forward contracts, less than 2 year (cash flow hedge) 30.0 1.6 0.0 Other non-current assets/ Other non-current liabilities Total derivatives designated as hedging instruments $ 94.2 $ 3.7 $ 0.0 Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 321.8 2) $ 1.3 3) $ 0.4 4) Other current assets/ Other Total derivatives not designated as hedging instruments $ 321.8 $ 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 $290.6 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. 4) Net amount after deducting for offsetting swaps under ISDA agreements is $0.3 million. December 31, 2015 Fair Value Description Nominal Derivative Derivative Balance sheet location Derivatives designated as hedging instruments 1) Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 58.0 $ 0.2 $ 0.2 Other current assets/ Other current liabilities Foreign exchange forward contracts, less than 2 year (cash flow hedge) 11.3 0.0 0.1 Other non-current assets/ Other non-current liabilities Total derivatives designated as hedging instruments $ 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) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 482.4 $ 2.5 $ 5.1 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. Derivatives designated as hedging instruments The derivatives designated as hedging instruments outstanding at June 30, 2016 were foreign exchange forward contracts, classified as cash flow hedges. For the three and six months ended June 30, 2016, the cumulative gains and losses recognized in OCI on the cash flow hedges were a gain of $3.8 million and a gain of $2.8 million (net of taxes), respectively. The derivatives designated as hedging instruments outstanding at June 30, 2015 were foreign exchange forward contracts, classified as cash flow hedges. For the three and six months ended June 30, 2015, the cumulative gains and losses recognized in OCI on derivative effective portion, net were a loss of $0.4 million and a loss of $0.4 million, respectively. For the three and six months ended June 30, 2016, the gains and losses reclassified from OCI and recognized in the Consolidated Statements of Net Income were a loss of $0.1 million and a gain of $0.2 million (net of taxes), respectively. Gains and losses recognized and remaining in OCI as of June 30, 2016 is a gain of $2.6 million (net of taxes). Any ineffectiveness in the first six months of 2016 was not material. For the three and six months ended June 30, 2015, the gains and losses reclassified from OCI and recognized in the Consolidated Statements of Net Income, net were a gain of $0.0 million and a gain of $0.0 million, respectively. Gains and losses recognized and remaining in OCI as of June 30, 2015 was a loss of $0.4 million (net of taxes). There was no material ineffectiveness recorded during the first six months of 2015. Derivatives not designated as hedging instruments Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Net Income. The derivatives not designated as hedging instruments outstanding at June 30, 2016 were foreign exchange swaps. During the first quarter of 2016, the Company entered into foreign exchange option contracts to hedge foreign exchange risk related to the ANBS acquisition. The foreign exchange option contracts were no longer outstanding as of March 31, 2016. For the three and six months ended June 30, 2016, the gains and losses recognized in other non-operating items, net were a gain of $0.4 million and a gain of $1.2 million, respectively, for derivative instruments not designated as hedging instruments. The derivatives not designated as hedging instruments outstanding at June 30, 2015 were foreign exchange swaps. For the three and six months ended June 30, 2015, the gains and losses recognized in other financial items, net were a gain of $0.7 million and a loss of $1.6 million, respectively, for derivative instruments not designated as hedging instruments. For the three and six months ended June 30, 2016 and June 30, 2015, the gains and losses recognized as interest expense were immaterial. Fair Value of Debt The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, from estimates 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. Long-term debt June 30, 1) June 30, Fair value December 31, 1) December 31, Fair value U.S. Private placement $ 1,418.5 $ 1,531.7 $ 1,421.5 $ 1,472.6 Medium-term notes 41.3 42.8 77.8 79.6 Other long-term debt 0.2 0.2 0.1 0.1 Total $ 1,460.0 $ 1,574.7 $ 1,499.4 $ 1,552.3 Short-term debt Overdrafts and other short-term debt $ 59.9 $ 59.9 $ 39.4 $ 39.4 Short-term portion of long-term debt 35.5 35.7 0.2 0.2 Total $ 95.4 $ 95.6 $ 39.6 $ 39.6 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 the three and six month periods ended June 30, 2016, the Company did not record any material impairment charges on its long-lived assets. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes | 5 Income Taxes The effective tax rate in the second quarter of 2016 was 25.9% compared to 29.7% in the same quarter of 2015. Discrete tax items, net had a favorable impact of 1.2% in 2016. In the second quarter of 2015, discrete tax items, net had a favorable impact of 4.3%, primarily related to the resolution of a prior year tax refund claim. The effective tax rate in the first six months of 2016 was 27.8% compared to 33.4% for the first six months of 2015. In the first six months of 2016, the net impact of discrete tax items caused a 0.2% increase to the effective tax rate. The net impact of discrete tax items in the first six months of 2015 caused a 0.7% decrease to the effective tax rate. For the three and six month periods ended June 30, 2016, the tax rate has been favorably impacted by the mix of earnings by various jurisdictions compared to the same period in the prior year. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and foreign jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2012. 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 prior to 2009. As of June 30, 2016 the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods. During the second quarter of 2016, the Company recorded a net increase of $2.3 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits of prior years. During the second quarter of 2016, the Company recorded a net decrease of $0.5 million to income tax reserves for unrecognized tax benefits of prior years due to the lapse of the applicable statute of limitations. Of the total unrecognized tax benefits of $32.9 million recorded at June 30, 2016, $10.8 million is classified as current tax payable and $22.1 million is classified as non-current tax payable on the Condensed Consolidated Balance Sheet. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventories | 6 Inventories Inventories are stated at the lower of cost (principally FIFO) or market. The components of inventories were as follows: As of June 30, 2016 December 31, 2015 Raw materials $ 365.0 $ 339.9 Work in progress 261.7 243.4 Finished products 222.8 217.9 Inventories 849.5 801.2 Inventory valuation reserve (99.1 ) (89.8 ) Total inventories, net of reserve $ 750.4 $ 711.4 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill | 7 Goodwill Passive Safety Electronics Total Carrying amount December 31, 2015 $ 1,388.3 $ 278.0 $ 1,666.3 Acquisition — 221.4 221.4 Effect of currency translation 1.2 5.3 6.5 Carrying amount June 30, 2016 $ 1,389.5 $ 504.7 $ 1,894.2 The goodwill recognized in the first quarter of 2016 was related to the ANBS acquisition (see Note 3). |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring | 8 Restructuring Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under existing credit facilities. The Company does not expect that the execution of these activities will have a material adverse impact on its liquidity position. The majority of 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. Three months ended June 30, 2016 The employee-related restructuring provisions and cash payments for the three months ended June 30, 2016 mainly related to headcount reductions in high-cost countries in Europe and Asia. The table below summarizes the change in the balance sheet position of the restructuring reserves from March 31, 2016 to June 30, 2016. March 31, Provision/ Provision/ Cash Translation June 30, 2016 Charge Reversal payments difference 2016 Restructuring employee-related $ 86.8 $ 3.7 $ (0.3 ) $ (21.5 ) $ (2.2 ) $ 66.5 Other 0.2 — — — (0.1 ) 0.1 Total reserve $ 87.0 $ 3.7 $ (0.3 ) $ (21.5 ) $ (2.3 ) $ 66.6 Six months ended June 30, 2016 The employee-related restructuring provisions and cash payments for the six months ended June 30, 2016 mainly related to headcount reductions in high-cost countries in Europe and Asia. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2015 to June 30, 2016. December 31, Provision/ Provision/ Cash Translation June 30, 2015 Charge Reversal payments difference 2016 Restructuring employee-related $ 87.7 $ 17.3 $ (0.7 ) $ (39.1 ) $ 1.3 $ 66.5 Other 0.2 — — — (0.1 ) 0.1 Total reserve $ 87.9 $ 17.3 $ (0.7 ) $ (39.1 ) $ 1.2 $ 66.6 Three months ended June 30, 2015 The employee-related restructuring provisions and cash payments for the three months ended June 30, 2015 mainly related 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 March 31, 2015 to June 30, 2015. March 31, Provision/ Provision/ Cash Translation June 30, 2015 Charge Reversal payments difference 2015 Restructuring employee-related $ 79.3 $ 7.4 $ (0.9 ) $ (6.7 ) $ 2.8 $ 81.9 Other — 0.2 — (0.2 ) — — Total reserve $ 79.3 $ 7.6 $ (0.9 ) $ (6.9 ) $ 2.8 $ 81.9 Six months ended June 30, 2015 The employee-related restructuring provisions and cash payments for the six months ended June 30, 2015 mainly related 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, 2014 to June 30, 2015. December 31, Provision/ Provision/ Cash Translation June 30, 2014 Charge Reversal payments difference 2015 Restructuring employee-related $ 79.6 $ 42.9 $ (1.8 ) $ (32.6 ) $ (6.2 ) $ 81.9 Other 0.2 0.3 — (0.5 ) — — Total reserve $ 79.8 $ 43.2 $ (1.8 ) $ (33.1 ) $ (6.2 ) $ 81.9 |
Product-Related Liabilities
Product-Related Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Product-Related Liabilities | 9 Product-Related Liabilities The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. For further explanation, see Note 12 Contingent Liabilities below. The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions and cash paid for the three and six months ended June 30, 2016 and June 30, 2015 mainly related to warranty related issues. Three months ended Six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Reserve at beginning of the period $ 61.8 $ 47.2 $ 60.8 $ 51.3 Change in reserve 13.3 23.1 17.3 24.9 Cash payments (6.9 ) (7.7 ) (10.5 ) (12.2 ) Translation difference 0.1 0.3 0.7 (1.1 ) Reserve at end of the period $ 68.3 $ 62.9 $ 68.3 $ 62.9 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2016 | |
Retirement Plans | 10 Retirement Plans The Company has contributory and non-contributory defined benefit pension plans covering employees at most operations in the U.S. and in certain other countries. The main plan is the U.S. plan for which the benefits are based on an average of the employee’s earnings in the years preceding retirement and on credited service. Certain supplemental funded and unfunded plan arrangements also provide retirement benefits to specified groups of participants. The Company has frozen participation in the U.S. pension plans to include only those employees hired as of December 31, 2003. The U.K. defined benefit plan is the most significant individual non-U.S. pension plan and the Company has frozen participation to include only those employees hired as of April 30, 2003. The Net Periodic Benefit Costs related to Other Post-retirement Benefits were not significant to the condensed consolidated financial statements of the Company for the three and six month periods ended June 30, 2016 and June 30, 2015 and are not included in the table below. The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: Three months ended Six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Service cost $ 5.4 $ 5.8 $ 10.7 $ 11.6 Interest cost 5.4 5.2 10.7 10.5 Expected return on plan assets (5.2 ) (5.4 ) (10.3 ) (10.7 ) Amortization prior service credit (0.1 ) (0.1 ) (0.3 ) (0.3 ) Amortization of actuarial loss 1.5 2.5 3.0 5.0 Net Periodic Benefit Cost $ 7.0 $ 8.0 $ 13.8 $ 16.1 |
Controlling and Non-Controlling
Controlling and Non-Controlling Interest | 6 Months Ended |
Jun. 30, 2016 | |
Controlling and Non-Controlling Interest | 11 Controlling and Non-Controlling Interest Three Months ended June 30, 2016 June 30, 2015 Equity attributable to Equity attributable to Controlling interest Non-controlling Total Controlling interest Non-controlling Total Balance at beginning of period $ 3,600.2 $ 265.0 $ 3,865.2 $ 3,210.6 $ 15.0 $ 3,225.6 Total Comprehensive Income: Net income 148.4 0.0 148.4 136.7 0.1 136.8 Foreign currency translation (30.7 ) 9.5 (21.2 ) 20.1 (0.0 ) 20.1 Net change in cash flow hedges 3.9 — 3.9 (0.4 ) — (0.4 ) Defined benefit pension plan 0.6 — 0.6 1.5 — 1.5 Total Comprehensive Income 122.2 9.5 131.7 157.9 0.1 158.0 Common Stock incentives 5.6 — 5.6 6.5 — 6.5 Cash dividends declared (51.2 ) — (51.2 ) (49.1 ) — (49.1 ) Repurchased shares — — — — — — Dividends paid to non-controlling interest on subsidiary shares — (0 ) (0 ) — — — Investment in subsidiary by non-controlling interest — 1.1 1.1 — — — Balance at end of period $ 3,676.8 $ 275.6 $ 3,952.4 $ 3,325.9 $ 15.1 $ 3,341.0 Six Months ended June 30, 2016 June 30, 2015 Equity attributable to Equity attributable to Controlling interest Non-controlling Total Controlling interest Non-controlling Total Balance at beginning of period $ 3,455.6 $ 12.5 $ 3,468.1 $ 3,427.1 $ 15.0 $ 3,442.1 Total Comprehensive Income: Net income 281.5 0.4 281.9 172.4 0.1 172.5 Foreign currency translation 29.0 9.6 38.6 (90.7 ) (0.0 ) (90.7 ) Net change in cash flow hedges 2.7 — 2.7 (0.4 ) — (0.4 ) Defined benefit pension plan 1.4 — 1.4 3.0 — 3.0 Total Comprehensive Income 314.6 10.0 324.6 84.3 0.1 84.4 Common Stock incentives 8.9 — 8.9 17.4 — 17.4 Cash dividends declared (102.3 ) — (102.3 ) (98.5 ) — (98.5 ) Repurchased shares — — — (104.4 ) — (104.4 ) Dividends paid to non-controlling interest on subsidiary shares — (1.7 ) (1.7 ) — — — Investment in subsidiary by non-controlling interest — 254.8 254.8 — — — Balance at end of period $ 3,676.8 $ 275.6 $ 3,952.4 $ 3,325.9 $ 15.1 $ 3,341.0 |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Contingent Liabilities | 12 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$66.4 million (approximately $20.6 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 June 30, 2016 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 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 an investigation of anti-competitive behavior among suppliers of occupant safety systems. 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 June 30, 2016. 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 believes that a loss with respect to this investigation is probable and accrued an amount for the period ended June 30, 2016 related to this investigation that is not material to the Company’s results of operations. The Company cannot predict or estimate the duration or ultimate outcome of the CCSA 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 believes that a loss in the form of a civil penalty is probable with respect to this matter and accrued an initial amount for the period ended December 31, 2015. Due to further developments with CADE’s investigation the Company accrued an additional amount during the period ended March 31, 2016. The aggregate accrued amount remains not material to the Company’s results of operations. 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. Specifically, the Company, several of its subsidiaries and its competitors were named as defendants in a total of nineteen purported antitrust class action lawsuits filed between June 2012 and June 2015. Fifteen of these lawsuits were filed in the U.S. and were 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. Plaintiffs in the U.S. cases sought to represent four purported classes - direct purchasers, auto dealers, end-payors, and, as of the filing of the last class action in June 2015, truck and equipment dealers - who purchased occupant safety systems or components directly from a defendant, indirectly through purchases or leases of new vehicles containing such systems, or through purchases of replacement parts. In May 2014, the Company, without admitting any liability, entered into separate settlement agreements with representatives of the three classes of plaintiffs then pending in the MDL. Pursuant to the settlement agreements, the Company agreed to pay $40 million to the direct purchaser settlement class, $6 million to the auto dealer settlement class, and $19 million to the end-payor settlement class, for a total of $65 million. This amount was expensed during the second quarter of 2014. In exchange, the plaintiffs agreed that the plaintiffs and the settlement classes would release Autoliv from all claims regarding their U.S. purchases that were or could have been asserted on behalf of the three classes in the MDL. In January 2015, the MDL court granted final approval of the direct purchaser class settlement, which had been reduced to approximately $35.5 million because of opt-outs; in December 2015, the MDL court granted final approval of the auto dealer class settlement; and on June 20, 2016, the MDL court granted final approval of the end-payor class settlement, over the objections of several individual class members, some of whom have appealed the MDL court’s approval of the Company’s end-payor settlement and several other defendants’ settlements that were approved at the same time. This appeal will delay the finality of the Company’s settlement with the end-payor class. In addition, several individuals and one insurer (and its affiliated entities) have opted-out of all of the pending end-payor class settlements, including the Company’s settlement. The insurer and its affiliated entities have informed the Company and other settling defendants that they plan to file a lawsuit seeking relief regarding damages allegedly sustained in their purchases of replacement parts and vehicles containing allegedly affected parts. The class settlements do 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, the Company, without admitting any liability, 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 the direct purchaser class 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 in 2014. In April 2016, the Company reached an agreement to settle with the truck and equipment dealers class for a non-material amount. The settlement is subject to court approval following notice to the class and the opportunity for class members to object to or opt-out of the settlement. 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 believes that a loss is probable with respect to these Canadian antitrust cases and accrued an initial amount for the three month period ended March 31, 2016 related to these claims. Due to further developments with respect to these claims, the Company accrued an additional amount during the three month period ended June 30, 2016. The aggregate accrued amount remains not material to the Company’s results of operations. There is currently no timeline for class certification or discovery in the Canadian occupant safety systems class actions. These actions have been stayed pending proceedings in certain earlier-filed auto parts cases. The Company cannot predict or estimate the duration or ultimate outcome of the Canadian antitrust 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 actually due related to these matters could differ materially from the Company’s recorded estimates. In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a 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 carries insurance for potential recall and product liability claims at coverage levels based on our prior claims 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 our insurance. On June 29, 2016, the Company announced that it is cooperating with Toyota Motor Corp. in its recall of approximately 1.4 million vehicles equipped with a certain model of the Company’s side curtain airbag (the “Toyota Recall”). Toyota has informed the Company that there have been seven reported incidents where a side curtain airbag has partially inflated without a deployment signal from the airbag control unit. The incidents have all occurred in parked, unoccupied vehicles and no personal injuries have been reported. The root cause analysis of the issue is ongoing. However, at this point in time the Company believes that a compromised manufacturing process at a sub-supplier may be a contributing factor and, as no incidents have been reported in vehicles produced by other OEMs with the same inflator produced during the same period as those recalled by Toyota, that vehicle-specific characteristics may also contribute to the issue. The sub-supplier’s manufacturing process was changed in January 2012, and the vehicles now recalled by Toyota represent more than half of all inflators of the relevant type manufactured before the sub-supplier process was changed. As previously disclosed in our Quarterly Report on Form 10-Q for the period ended March 31, 2016, the Company determined pursuant to ASC 450 that a loss with respect to this issue is reasonably possible. If the Company is obligated to indemnify Toyota for the costs associated with the Toyota Recall, the Company expects that its insurance will generally cover such costs and liabilities and estimates that the Company’s loss, net of expected insurance recoveries, would be less than $20 million. However, the ultimate costs of the Toyota Recall could be materially different. The main variables affecting the ultimate cost for the Company are: the determination of proportionate responsibility (if any) among Toyota, the Company, and any relevant sub-suppliers; the ultimate number of vehicles repaired; the cost of repair per vehicle; and the actual recoveries from sub-suppliers and insurers. The Company’s insurance policies generally include coverage of the costs of a recall, although costs related to replacement parts are generally not covered. In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material. The table in Note 9 Product-Related Liabilities above summarizes the change in the balance sheet position of the product related liabilities for the three month period ended June 30, 2016. |
Stock Incentive Plan
Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2016 | |
Stock Incentive Plan | 13 Stock Incentive Plan As a result of an initiative to more closely link the Company’s stock incentive program to the Company’s financial performance, the Compensation Committee approved a new long-term equity incentive program, pursuant to which performance shares will replace stock options. The first grants under the new long-term incentive (LTI) program were made in February 2016. On February 15, 2016 and May 9, 2016, the Compensation Committee of the Board of Directors granted shares under the LTI program pursuant to which certain employees received 50% of their LTI grant value in the form of performance shares and 50% in the form of restricted stock units. The restricted stock units granted on February 15, 2016 and May 9, 2016 will vest in three approximately equal annual installments beginning on the first anniversary of the grant date, subject to the grantee’s continued employment with the Company on each vesting date. Additionally, the grantee may earn 0%-200% of the target number of performance shares based on the Company’s achievement of specified targets for the Company’s compound annual growth rate (CAGR) for sales and the Company’s CAGR in earnings per share relative to an established benchmark growth rate. Each performance target is weighted 50% and results are measured at the end of the three-year performance period. The fair value of the restricted stock units and performance shares granted under the LTI program are calculated as the grant date fair value of the shares expected to be issued. The grant date fair value for the restricted stock units at February 15, 2016 and May 9, 2016 was $7.0 million and $0.2 million, respectively. This cost will be amortized straight line over the vesting periods. The grant date fair value of the performance shares at February 15, 2016 and May 9, 2016 was $6.9 million and $0.2 million, respectively, and is based upon the market value of the Autoliv common stock at the grant date. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates its estimate of the actual number of shares expected to be issued at the end of the program on a quarterly basis. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to compensation expense, if necessary. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per share | 14 Earnings per share The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). When it would not be antidilutive (such as during periods of net loss), the diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the Company’s Stock Incentive Plan. For the three and six months ended June 30, 2016, approximately 6 thousand shares of common stock, respectively, were not included in the computation of the diluted EPS, which could potentially dilute basic EPS in the future. For the three and six months ended June 30, 2015, approximately 2 thousand shares of common stock were not included in the computation of the diluted EPS, which could potentially dilute basic EPS in the future. During the three months ended June 30, 2016 and June 30, 2015, approximately 0.1 million and 0.2 million shares of common stock, respectively, from the treasury stock have been utilized by the Company’s Stock Incentive Plan. During the six months ended June 30, 2016 and June 30, 2015, approximately 29 thousand and 0.2 million shares of common stock, respectively, from the treasury stock have been utilized by the Company’s Stock Incentive Plan. Actual weighted average shares used in calculating EPS were: (In millions) Three months ended Six months ended June 30, June 30, June 30, June 30, Weighted average shares basic 88.2 88.0 88.2 88.2 Effect of dilutive securities: - stock options/share awards 0.2 0.3 0.2 0.2 Weighted average shares diluted 88.4 88.3 88.4 88.4 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information | 15 Segment Information The Company currently reports two operating segments, Passive Safety and Electronics. Passive Safety includes the Company’s airbag, seatbelt and steering wheel businesses, while Electronics combines all of the Company’s electronics resources and expertise in both passive safety electronics and active safety electronics. The fair value of the net assets acquired related to the ANBS acquisition (as of March 31, 2016) is being reported in the Electronics Segment. Three months ended Six months ended Net sales, including Intersegment Sales June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 1,996.1 $ 1,925.3 $ 3,984.8 $ 3,755.7 Electronics 597.8 377.1 1,054.2 728.3 Total segment sales $ 2,593.9 $ 2,302.4 $ 5,039.0 $ 4,484.0 Corporate and other 1.6 2.9 1.9 7.1 Intersegment sales (17.0 ) (13.8 ) (32.4 ) (25.5 ) Total net sales $ 2,578.5 $ 2,291.5 $ 5008.5 $ 4,465.6 Three months ended Six months ended Income before Income Taxes June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 206.8 $ 195.7 $ 398.4 $ 258.9 Electronics 14.9 11.9 26.7 20.9 Segment operating income $ 221.7 $ 207.6 $ 425.1 $ 279.8 Corporate and other (9.0 ) 1.1 (7.2 ) 8.9 Interest and other non-operating expenses, net (12.4 ) (15.8 ) (27.9 ) (32.6 ) Income from equity method investments 0.1 1.6 0.7 2.9 Income before income taxes $ 200.4 $ 194.5 $ 390.7 $ 259.0 Three months ended Six months ended Capital Expenditures June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 100.5 $ 101.2 $ 173.3 $ 222.4 Electronics 27.7 13.1 43.9 24.7 Corporate and other 3.5 0.9 6.3 2.9 Total capital expenditures $ 131.7 $ 115.2 $ 223.5 $ 250.0 Three months ended Six months ended Depreciation and Amortization June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 69.4 $ 63.7 $ 137.6 $ 125.5 Electronics 25.1 11.1 39.8 21.8 Corporate and other 2.2 1.0 4.4 2.2 Total depreciation and amortization $ 96.7 $ 75.8 $ 181.8 $ 149.5 As of Segment Assets June 30, December 31, (Dollars in millions) 2016 2015 Passive Safety $ 5,790.0 $ 5,539.3 Electronics 1,735.0 966.5 Segment assets $ 7,525.0 $ 6,505.8 Corporate and other 1) 719.3 1,019.7 Total assets $ 8,244.3 $ 7,525.5 1) Corporate and other assets mainly consist of cash and cash equivalents, income taxes and equity method investments. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events | 16 Subsequent Events On July 14, 2016, the Company and its wholly owned subsidiaries, Autoliv ASP, Inc. and Autoliv AB, refinanced its existing revolving credit facility by entering into a US $1.1 billion multi-currency revolving credit facility agreement with 14 banks. The refinanced revolving credit facility matures in July 2021, but, subject to the banks approval, can be extended by the Company for up to two additional years. Under the credit agreement, the Company pays a commitment fee on the undrawn amount of 0.08% per annum, representing 35% of the applicable margin, which is 0.225% given the Company’s current credit rating of A- from Standard and Poor’s. The Company may draw loans with maturities of up to five years and any amounts drawn under the facility shall be used for general corporate purposes. The facility is guaranteed by the Company and Autoliv ASP, Inc. As with all of the existing principal debt arrangements of the Company, the credit agreement does not have any financial covenants, i.e. performance-related restrictions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments | All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statements of Net Income along with the off-setting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statements of Net Income when the hedge transaction affects net earnings. The Company 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 Statements of Net Income during the first six months of 2016. Any ineffectiveness in the first six months of 2016 was not material. The Company’s derivatives are all classified as Level 2 of the fair value hierarchy and there have been no transfers between the levels during this or comparable periods. |
Inventories | Inventories are stated at the lower of cost (principally FIFO) or market. |
Restructuring Provisions | Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. |
Contingent Liabilities | Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates. |
Earnings Per Share | The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). When it would not be antidilutive (such as during periods of net loss), the diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the Company’s Stock Incentive Plan. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Preliminary Fair Values of Identifiable Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of identifiable assets acquired and liabilities assumed as of March 31, 2016 that are reflected in the Company’s Consolidated Balance Sheet: Amounts recognized as of acquisition date March 31, 2016 (in millions) Assets: Cash and cash equivalents $ 37.7 Receivables 1.5 Inventories 32.9 Other current assets 7.6 Property, plant and equipment 115.0 Other non-current assets 0.7 Intangibles 131.8 Goodwill 221.4 Total assets $ 548.6 Liabilities: Accounts payable $ 5.9 Other current liabilities 16.1 Pension liabilities 8.3 Total liabilities $ 30.3 Net assets acquired $ 518.3 Less: Non-controlling interest $ (254.0 ) Controlling interest $ 264.3 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015. June 30, 2016 Fair Value Description Nominal Derivative Derivative Balance sheet location Derivatives designated as hedging instruments 1) Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 64.2 $ 2.1 $ 0.0 Other current assets/ Other Foreign exchange forward contracts, less than 2 year (cash flow hedge) 30.0 1.6 0.0 Other non-current assets/ Other non-current liabilities Total derivatives designated as hedging instruments $ 94.2 $ 3.7 $ 0.0 Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 321.8 2) $ 1.3 3) $ 0.4 4) Other current assets/ Other Total derivatives not designated as hedging instruments $ 321.8 $ 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 $290.6 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. 4) Net amount after deducting for offsetting swaps under ISDA agreements is $0.3 million. December 31, 2015 Fair Value Description Nominal Derivative Derivative Balance sheet location Derivatives designated as hedging instruments 1) Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 58.0 $ 0.2 $ 0.2 Other current assets/ Other current liabilities Foreign exchange forward contracts, less than 2 year (cash flow hedge) 11.3 0.0 0.1 Other non-current assets/ Other non-current liabilities Total derivatives designated as hedging instruments $ 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) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 482.4 $ 2.5 $ 5.1 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. |
Fair Value of Debt | Long-term debt June 30, 1) June 30, Fair value December 31, 1) December 31, Fair value U.S. Private placement $ 1,418.5 $ 1,531.7 $ 1,421.5 $ 1,472.6 Medium-term notes 41.3 42.8 77.8 79.6 Other long-term debt 0.2 0.2 0.1 0.1 Total $ 1,460.0 $ 1,574.7 $ 1,499.4 $ 1,552.3 Short-term debt Overdrafts and other short-term debt $ 59.9 $ 59.9 $ 39.4 $ 39.4 Short-term portion of long-term debt 35.5 35.7 0.2 0.2 Total $ 95.4 $ 95.6 $ 39.6 $ 39.6 1) Debt as reported in balance sheet. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Inventories | The components of inventories were as follows: As of June 30, 2016 December 31, 2015 Raw materials $ 365.0 $ 339.9 Work in progress 261.7 243.4 Finished products 222.8 217.9 Inventories 849.5 801.2 Inventory valuation reserve (99.1 ) (89.8 ) Total inventories, net of reserve $ 750.4 $ 711.4 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Goodwill | Passive Safety Electronics Total Carrying amount December 31, 2015 $ 1,388.3 $ 278.0 $ 1,666.3 Acquisition — 221.4 221.4 Effect of currency translation 1.2 5.3 6.5 Carrying amount June 30, 2016 $ 1,389.5 $ 504.7 $ 1,894.2 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Change in Balance Sheet Position of Restructuring Reserves | Three months ended June 30, 2016 The employee-related restructuring provisions and cash payments for the three months ended June 30, 2016 mainly related to headcount reductions in high-cost countries in Europe and Asia. The table below summarizes the change in the balance sheet position of the restructuring reserves from March 31, 2016 to June 30, 2016. March 31, Provision/ Provision/ Cash Translation June 30, 2016 Charge Reversal payments difference 2016 Restructuring employee-related $ 86.8 $ 3.7 $ (0.3 ) $ (21.5 ) $ (2.2 ) $ 66.5 Other 0.2 — — — (0.1 ) 0.1 Total reserve $ 87.0 $ 3.7 $ (0.3 ) $ (21.5 ) $ (2.3 ) $ 66.6 Six months ended June 30, 2016 The employee-related restructuring provisions and cash payments for the six months ended June 30, 2016 mainly related to headcount reductions in high-cost countries in Europe and Asia. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2015 to June 30, 2016. December 31, Provision/ Provision/ Cash Translation June 30, 2015 Charge Reversal payments difference 2016 Restructuring employee-related $ 87.7 $ 17.3 $ (0.7 ) $ (39.1 ) $ 1.3 $ 66.5 Other 0.2 — — — (0.1 ) 0.1 Total reserve $ 87.9 $ 17.3 $ (0.7 ) $ (39.1 ) $ 1.2 $ 66.6 Three months ended June 30, 2015 The employee-related restructuring provisions and cash payments for the three months ended June 30, 2015 mainly related 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 March 31, 2015 to June 30, 2015. March 31, Provision/ Provision/ Cash Translation June 30, 2015 Charge Reversal payments difference 2015 Restructuring employee-related $ 79.3 $ 7.4 $ (0.9 ) $ (6.7 ) $ 2.8 $ 81.9 Other — 0.2 — (0.2 ) — — Total reserve $ 79.3 $ 7.6 $ (0.9 ) $ (6.9 ) $ 2.8 $ 81.9 Six months ended June 30, 2015 The employee-related restructuring provisions and cash payments for the six months ended June 30, 2015 mainly related 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, 2014 to June 30, 2015. December 31, Provision/ Provision/ Cash Translation June 30, 2014 Charge Reversal payments difference 2015 Restructuring employee-related $ 79.6 $ 42.9 $ (1.8 ) $ (32.6 ) $ (6.2 ) $ 81.9 Other 0.2 0.3 — (0.5 ) — — Total reserve $ 79.8 $ 43.2 $ (1.8 ) $ (33.1 ) $ (6.2 ) $ 81.9 |
Product-Related Liabilities (Ta
Product-Related Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Change in Balance Sheet Position of Product-Related Liabilities | The table below summarizes the change in the balance sheet position of the product-related liabilities. The provisions and cash paid for the three and six months ended June 30, 2016 and June 30, 2015 mainly related to warranty related issues. Three months ended Six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Reserve at beginning of the period $ 61.8 $ 47.2 $ 60.8 $ 51.3 Change in reserve 13.3 23.1 17.3 24.9 Cash payments (6.9 ) (7.7 ) (10.5 ) (12.2 ) Translation difference 0.1 0.3 0.7 (1.1 ) Reserve at end of the period $ 68.3 $ 62.9 $ 68.3 $ 62.9 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Pension Plans, Defined Benefit | |
Schedule of Components of Net Periodic Benefit Cost | The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows: Three months ended Six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Service cost $ 5.4 $ 5.8 $ 10.7 $ 11.6 Interest cost 5.4 5.2 10.7 10.5 Expected return on plan assets (5.2 ) (5.4 ) (10.3 ) (10.7 ) Amortization prior service credit (0.1 ) (0.1 ) (0.3 ) (0.3 ) Amortization of actuarial loss 1.5 2.5 3.0 5.0 Net Periodic Benefit Cost $ 7.0 $ 8.0 $ 13.8 $ 16.1 |
Controlling and Non-Controlli30
Controlling and Non-Controlling Interest (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Controlling and Non-Controlling Interest | Three Months ended June 30, 2016 June 30, 2015 Equity attributable to Equity attributable to Controlling interest Non-controlling Total Controlling interest Non-controlling Total Balance at beginning of period $ 3,600.2 $ 265.0 $ 3,865.2 $ 3,210.6 $ 15.0 $ 3,225.6 Total Comprehensive Income: Net income 148.4 0.0 148.4 136.7 0.1 136.8 Foreign currency translation (30.7 ) 9.5 (21.2 ) 20.1 (0.0 ) 20.1 Net change in cash flow hedges 3.9 — 3.9 (0.4 ) — (0.4 ) Defined benefit pension plan 0.6 — 0.6 1.5 — 1.5 Total Comprehensive Income 122.2 9.5 131.7 157.9 0.1 158.0 Common Stock incentives 5.6 — 5.6 6.5 — 6.5 Cash dividends declared (51.2 ) — (51.2 ) (49.1 ) — (49.1 ) Repurchased shares — — — — — — Dividends paid to non-controlling interest on subsidiary shares — (0 ) (0 ) — — — Investment in subsidiary by non-controlling interest — 1.1 1.1 — — — Balance at end of period $ 3,676.8 $ 275.6 $ 3,952.4 $ 3,325.9 $ 15.1 $ 3,341.0 Six Months ended June 30, 2016 June 30, 2015 Equity attributable to Equity attributable to Controlling interest Non-controlling Total Controlling interest Non-controlling Total Balance at beginning of period $ 3,455.6 $ 12.5 $ 3,468.1 $ 3,427.1 $ 15.0 $ 3,442.1 Total Comprehensive Income: Net income 281.5 0.4 281.9 172.4 0.1 172.5 Foreign currency translation 29.0 9.6 38.6 (90.7 ) (0.0 ) (90.7 ) Net change in cash flow hedges 2.7 — 2.7 (0.4 ) — (0.4 ) Defined benefit pension plan 1.4 — 1.4 3.0 — 3.0 Total Comprehensive Income 314.6 10.0 324.6 84.3 0.1 84.4 Common Stock incentives 8.9 — 8.9 17.4 — 17.4 Cash dividends declared (102.3 ) — (102.3 ) (98.5 ) — (98.5 ) Repurchased shares — — — (104.4 ) — (104.4 ) Dividends paid to non-controlling interest on subsidiary shares — (1.7 ) (1.7 ) — — — Investment in subsidiary by non-controlling interest — 254.8 254.8 — — — Balance at end of period $ 3,676.8 $ 275.6 $ 3,952.4 $ 3,325.9 $ 15.1 $ 3,341.0 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Actual Weighted Average Shares Used in EPS Calculation | Actual weighted average shares used in calculating EPS were: (In millions) Three months ended Six months ended June 30, June 30, June 30, June 30, Weighted average shares basic 88.2 88.0 88.2 88.2 Effect of dilutive securities: - stock options/share awards 0.2 0.3 0.2 0.2 Weighted average shares diluted 88.4 88.3 88.4 88.4 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information Sales Including Intersegment Sales | Three months ended Six months ended Net sales, including Intersegment Sales June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 1,996.1 $ 1,925.3 $ 3,984.8 $ 3,755.7 Electronics 597.8 377.1 1,054.2 728.3 Total segment sales $ 2,593.9 $ 2,302.4 $ 5,039.0 $ 4,484.0 Corporate and other 1.6 2.9 1.9 7.1 Intersegment sales (17.0 ) (13.8 ) (32.4 ) (25.5 ) Total net sales $ 2,578.5 $ 2,291.5 $ 5008.5 $ 4,465.6 |
Segment Information Income Before Income Taxes | Three months ended Six months ended Income before Income Taxes June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 206.8 $ 195.7 $ 398.4 $ 258.9 Electronics 14.9 11.9 26.7 20.9 Segment operating income $ 221.7 $ 207.6 $ 425.1 $ 279.8 Corporate and other (9.0 ) 1.1 (7.2 ) 8.9 Interest and other non-operating expenses, net (12.4 ) (15.8 ) (27.9 ) (32.6 ) Income from equity method investments 0.1 1.6 0.7 2.9 Income before income taxes $ 200.4 $ 194.5 $ 390.7 $ 259.0 |
Segment Information Capital Expenditures | Three months ended Six months ended Capital Expenditures June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 100.5 $ 101.2 $ 173.3 $ 222.4 Electronics 27.7 13.1 43.9 24.7 Corporate and other 3.5 0.9 6.3 2.9 Total capital expenditures $ 131.7 $ 115.2 $ 223.5 $ 250.0 |
Segment Information Depreciation and Amortization | Three months ended Six months ended Depreciation and Amortization June 30, June 30, June 30, June 30, (Dollars in millions) 2016 2015 2016 2015 Passive Safety $ 69.4 $ 63.7 $ 137.6 $ 125.5 Electronics 25.1 11.1 39.8 21.8 Corporate and other 2.2 1.0 4.4 2.2 Total depreciation and amortization $ 96.7 $ 75.8 $ 181.8 $ 149.5 |
Segment Information Segment Assets | As of Segment Assets June 30, December 31, (Dollars in millions) 2016 2015 Passive Safety $ 5,790.0 $ 5,539.3 Electronics 1,735.0 966.5 Segment assets $ 7,525.0 $ 6,505.8 Corporate and other 1) 719.3 1,019.7 Total assets $ 8,244.3 $ 7,525.5 1) Corporate and other assets mainly consist of cash and cash equivalents, income taxes and equity method investments. |
Recently Issued Accounting Pr33
Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Recently Issued Accounting Pronouncements [Line Items] | ||||
Debt liability | [1] | $ 1,460 | $ 1,499.4 | |
ASU 2015-17, Balance Sheet Classification of Deferred Taxes | Restatement Adjustment | ||||
Recently Issued Accounting Pronouncements [Line Items] | ||||
Current deferred tax assets | $ (70) | |||
Non-current deferred tax assets | 70 | |||
Current deferred tax liabilities | (20) | |||
Non-current deferred tax liabilities | 20 | |||
ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs | Restatement Adjustment | ||||
Recently Issued Accounting Pronouncements [Line Items] | ||||
Debt issuance cost asset | (1.7) | (1.7) | ||
Debt liability | $ 1.7 | $ 1.7 | ||
[1] | Debt as reported in balance sheet. |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Inventory fair value step-up adjustments | $ 1.3 | |||
Goodwill | $ 1,894.2 | $ 1,666.3 | ||
Nissin Kogyo | ||||
Business Acquisition [Line Items] | ||||
Percentage of ownership interest retained by non-controlling owners | 49.00% | 49.00% | ||
Autoliv Nissin Brake Systems | ||||
Business Acquisition [Line Items] | ||||
Percentage of ownership interest acquired by the company | 51.00% | 51.00% | ||
Consideration transferred in cash | $ 264.3 | |||
Inventory fair value step-up adjustments | 1.3 | |||
Business combination, net sales | 137 | |||
Business combination, operating income | 0 | |||
Acquisition related costs | 2 | $ 3.5 | ||
Goodwill | $ 221.4 | $ 221.4 | 221.4 | |
Autoliv Nissin Brake Systems | Customer Contract | ||||
Business Acquisition [Line Items] | ||||
Business combination, intangible assets | $ 64.9 | |||
Intangible assets remaining useful life | 7 years | |||
Intangible assets, amortization method | Straight-line | |||
Autoliv Nissin Brake Systems | Technology | ||||
Business Acquisition [Line Items] | ||||
Business combination, intangible assets | $ 59.6 | |||
Intangible assets, amortization method | Straight-line | |||
Intangible assets useful life | 10 years |
Summary of Preliminary Fair Val
Summary of Preliminary Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | |||
Goodwill | $ 1,894.2 | $ 1,666.3 | |
Autoliv Nissin Brake Systems | |||
Assets: | |||
Cash and cash equivalents | $ 37.7 | ||
Receivables | 1.5 | ||
Inventories | 32.9 | ||
Other current assets | 7.6 | ||
Property, plant and equipment | 115 | ||
Other non-current assets | 0.7 | ||
Intangibles | 131.8 | ||
Goodwill | $ 221.4 | 221.4 | |
Total assets | 548.6 | ||
Liabilities: | |||
Accounts payable | 5.9 | ||
Other current liabilities | 16.1 | ||
Pension liabilities | 8.3 | ||
Total liabilities | 30.3 | ||
Net assets acquired | 518.3 | ||
Less: Non-controlling interest | (254) | ||
Controlling interest | $ 264.3 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |||
Derivatives Designated as Hedging Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Nominal volume | [1] | $ 94,200,000 | $ 69,300,000 | ||
Derivatives Designated as Hedging Instruments | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset | [1] | 3,700,000 | 200,000 | ||
Derivatives Designated as Hedging Instruments | Other current liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability | [1] | 0 | 300,000 | ||
Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Nominal volume | 321,800,000 | 482,400,000 | |||
Not Designated as Hedging Instrument | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset | 1,300,000 | 2,500,000 | |||
Not Designated as Hedging Instrument | Other current liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability | 400,000 | 5,100,000 | |||
Less Than One Year | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Cash Flow Hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Nominal volume | [1] | 64,200,000 | 58,000,000 | ||
Less Than One Year | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Other current assets | Cash Flow Hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset | [1] | 2,100,000 | 200,000 | ||
Less Than One Year | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Other current liabilities | Cash Flow Hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability | [1] | 0 | 200,000 | ||
Less Than Two Years | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Cash Flow Hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Nominal volume | [1] | 30,000,000 | 11,300,000 | ||
Less Than Two Years | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Other Non-Current Asset | Cash Flow Hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset | [1] | 1,600,000 | 0 | ||
Less Than Two Years | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Other Non-Current Liabilities | Cash Flow Hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability | [1] | 0 | 100,000 | ||
Less Than Six Months | Not Designated as Hedging Instrument | Foreign Exchange Swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Nominal volume | 321,800,000 | [2] | 482,400,000 | [3] | |
Less Than Six Months | Not Designated as Hedging Instrument | Foreign Exchange Swaps | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset | 1,300,000 | [4] | 2,500,000 | [5] | |
Less Than Six Months | Not Designated as Hedging Instrument | Foreign Exchange Swaps | Other current liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability | $ 400,000 | [6] | $ 5,100,000 | [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 $290.6 million. | ||||
[3] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $435.8 million. | ||||
[4] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. | ||||
[5] | Net amount after deducting for offsetting swaps under ISDA agreements is $2.4 million. | ||||
[6] | Net amount after deducting for offsetting swaps under ISDA agreements is $0.3 million. | ||||
[7] | Net amount after deducting for offsetting swaps under ISDA agreements is $4.9 million. |
Financial Assets and Liabilit37
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Other Current Assets Liabilities - Not Designated as Hedging Instrument - Foreign Exchange Swaps - Fair Value, Measurements, Recurring - Less Than Six Months - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative notional volume, amount after offsetting swaps | $ 290.6 | $ 435.8 |
Derivative asset, amount after offsetting swaps | 1.3 | 2.4 |
Derivative liability, amount after offsetting swaps | $ 0.3 | $ 4.9 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Net change in cash flow hedges | $ 5,000,000 | $ (600,000) | $ 3,500,000 | $ (600,000) | |
Asset impairment charges | 0 | 0 | |||
Other non-operating items, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments not designated as hedging instruments | 400,000 | 1,200,000 | |||
Other financial items, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments not designated as hedging instruments | 700,000 | (1,600,000) | |||
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 Statements of Net Income, net | (100,000) | 0 | 200,000 | 0 | |
Net change in cash flow hedges | 2,600,000 | (400,000) | |||
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 statements of net income | $ 3,800,000 | $ 2,800,000 | |||
Gain (loss) recognized in OCI on derivative effective portion, net | $ (400,000) | $ (400,000) | |||
Not Designated as Hedging Instrument | Foreign Exchange Option | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives not designated as hedging instruments outstanding | $ 0 |
Fair Value of Debt (Detail)
Fair Value of Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 1,460 | $ 1,499.4 |
Long-term debt, fair value | 1,574.7 | 1,552.3 | |
Short-term debt | [1] | 95.4 | 39.6 |
Short-term debt, fair value | 95.6 | 39.6 | |
U.S. Private Placement - Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 1,418.5 | 1,421.5 |
Long-term debt, fair value | 1,531.7 | 1,472.6 | |
Medium-term Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 41.3 | 77.8 |
Long-term debt, fair value | 42.8 | 79.6 | |
Other Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 0.2 | 0.1 |
Long-term debt, fair value | 0.2 | 0.1 | |
Overdrafts and Other Short-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 59.9 | 39.4 |
Short-term debt, fair value | 59.9 | 39.4 | |
Short-Term Portion of Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 35.5 | 0.2 |
Short-term debt, fair value | $ 35.7 | $ 0.2 | |
[1] | Debt as reported in balance sheet. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Line Items] | ||||
Effective income tax rate | 25.90% | 29.70% | 27.80% | 33.40% |
Increase/(decrease) in effective tax rate due to impact of discrete tax items | 1.20% | 4.30% | 0.20% | (0.70%) |
Net increase to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years | $ 2.3 | |||
Decrease to income tax reserves for unrecognized tax benefits of prior years due to lapse of applicable statute of limitations | 0.5 | |||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | $ 32.9 | 32.9 | ||
Current Tax Payable | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 10.8 | 10.8 | ||
Non-Current Tax Payable | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | $ 22.1 | $ 22.1 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 365 | $ 339.9 |
Work in progress | 261.7 | 243.4 |
Finished products | 222.8 | 217.9 |
Inventories | 849.5 | 801.2 |
Inventory valuation reserve | (99.1) | (89.8) |
Total inventories, net of reserve | $ 750.4 | $ 711.4 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Carrying amount at beginning of year | $ 1,666.3 |
Acquisition | 221.4 |
Effect of currency translation | 6.5 |
Carrying amount at end of year | 1,894.2 |
Passive Safety | |
Goodwill [Line Items] | |
Carrying amount at beginning of year | 1,388.3 |
Effect of currency translation | 1.2 |
Carrying amount at end of year | 1,389.5 |
Electronics | |
Goodwill [Line Items] | |
Carrying amount at beginning of year | 278 |
Acquisition | 221.4 |
Effect of currency translation | 5.3 |
Carrying amount at end of year | $ 504.7 |
Schedule of Changes in Balance
Schedule of Changes in Balance Sheet Position of Restructuring Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, beginning balance | $ 87 | $ 79.3 | $ 87.9 | $ 79.8 |
Provision/ Charge | 3.7 | 7.6 | 17.3 | 43.2 |
Provision/ Reversal | (0.3) | (0.9) | (0.7) | (1.8) |
Cash payments | (21.5) | (6.9) | (39.1) | (33.1) |
Translation difference | (2.3) | 2.8 | 1.2 | (6.2) |
Restructuring reserve, ending balance | 66.6 | 81.9 | 66.6 | 81.9 |
Restructuring employee-related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, beginning balance | 86.8 | 79.3 | 87.7 | 79.6 |
Provision/ Charge | 3.7 | 7.4 | 17.3 | 42.9 |
Provision/ Reversal | (0.3) | (0.9) | (0.7) | (1.8) |
Cash payments | (21.5) | (6.7) | (39.1) | (32.6) |
Translation difference | (2.2) | 2.8 | 1.3 | (6.2) |
Restructuring reserve, ending balance | 66.5 | 81.9 | 66.5 | 81.9 |
Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, beginning balance | 0.2 | 0.2 | 0.2 | |
Provision/ Charge | 0.2 | 0.3 | ||
Cash payments | $ (0.2) | $ (0.5) | ||
Translation difference | (0.1) | (0.1) | ||
Restructuring reserve, ending balance | $ 0.1 | $ 0.1 |
Summary of Change in Balance Sh
Summary of Change in Balance Sheet Position of Product-Related Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Product Liability Contingency [Line Items] | ||||
Reserve at beginning of the period | $ 61.8 | $ 47.2 | $ 60.8 | $ 51.3 |
Change in reserve | 13.3 | 23.1 | 17.3 | 24.9 |
Cash payments | (6.9) | (7.7) | (10.5) | (12.2) |
Translation difference | 0.1 | 0.3 | 0.7 | (1.1) |
Reserve at end of the period | $ 68.3 | $ 62.9 | $ 68.3 | $ 62.9 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 5.4 | $ 5.8 | $ 10.7 | $ 11.6 |
Interest cost | 5.4 | 5.2 | 10.7 | 10.5 |
Expected return on plan assets | (5.2) | (5.4) | (10.3) | (10.7) |
Amortization prior service credit | (0.1) | (0.1) | (0.3) | (0.3) |
Amortization of actuarial loss | 1.5 | 2.5 | 3 | 5 |
Net Periodic Benefit Cost | $ 7 | $ 8 | $ 13.8 | $ 16.1 |
Schedule of Controlling and Non
Schedule of Controlling and Non-Controlling Interest (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | $ 3,865.2 | $ 3,225.6 | $ 3,468.1 | $ 3,442.1 |
Total Comprehensive Income: | ||||
Net income | 148.4 | 136.8 | 281.9 | 172.5 |
Foreign currency translation | (21.2) | 20.1 | 38.6 | (90.7) |
Net change in cash flow hedges | 3.9 | (0.4) | 2.7 | (0.4) |
Defined benefit pension plan | 0.6 | 1.5 | 1.4 | 3 |
Comprehensive income | 131.7 | 158 | 324.6 | 84.4 |
Common Stock incentives | 5.6 | 6.5 | 8.9 | 17.4 |
Cash dividends declared | (51.2) | (49.1) | (102.3) | (98.5) |
Repurchased shares | (104.4) | |||
Dividends paid to non-controlling interest on subsidiary shares | 0 | (1.7) | ||
Investment in subsidiary by non-controlling interest | 1.1 | 254.8 | ||
Balance at end of period | 3,952.4 | 3,341 | 3,952.4 | 3,341 |
Controlling | ||||
Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | 3,600.2 | 3,210.6 | 3,455.6 | 3,427.1 |
Total Comprehensive Income: | ||||
Net income | 148.4 | 136.7 | 281.5 | 172.4 |
Foreign currency translation | (30.7) | 20.1 | 29 | (90.7) |
Net change in cash flow hedges | 3.9 | (0.4) | 2.7 | (0.4) |
Defined benefit pension plan | 0.6 | 1.5 | 1.4 | 3 |
Comprehensive income | 122.2 | 157.9 | 314.6 | 84.3 |
Common Stock incentives | 5.6 | 6.5 | 8.9 | 17.4 |
Cash dividends declared | (51.2) | (49.1) | (102.3) | (98.5) |
Repurchased shares | (104.4) | |||
Balance at end of period | 3,676.8 | 3,325.9 | 3,676.8 | 3,325.9 |
Noncontrolling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | 265 | 15 | 12.5 | 15 |
Total Comprehensive Income: | ||||
Net income | 0 | 0.1 | 0.4 | 0.1 |
Foreign currency translation | 9.5 | 0 | 9.6 | 0 |
Comprehensive income | 9.5 | 0.1 | 10 | 0.1 |
Dividends paid to non-controlling interest on subsidiary shares | 0 | (1.7) | ||
Investment in subsidiary by non-controlling interest | 1.1 | 254.8 | ||
Balance at end of period | $ 275.6 | $ 15.1 | $ 275.6 | $ 15.1 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) Vehicle in Millions, BRL in Millions, $ in Millions | Jun. 29, 2016ClaimVehicle | Mar. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2014BRL | Jun. 30, 2014USD ($)Defendant | Jun. 30, 2016USD ($)Defendant |
Loss Contingencies [Line Items] | ||||||
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 | ||||
Settlement agreements amount | $ 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 | $ 20.6 | BRL 66.4 | ||||
Ontario and Quebec Superior Court | ||||||
Loss Contingencies [Line Items] | ||||||
Number of pending antitrust class actions | Defendant | 4 | |||||
Damages from Product Defects | ||||||
Loss Contingencies [Line Items] | ||||||
Number of vehicles recalled | Vehicle | 1.4 | |||||
Number of confirmed incidents | Claim | 7 | |||||
Damages from Product Defects | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Range of possible loss | $ 20 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - LTI Program - USD ($) $ in Millions | May 09, 2016 | Feb. 15, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | 3 years |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target number of performance shares to be earned | 0.00% | 0.00% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target number of performance shares to be earned | 200.00% | 200.00% |
Weighted Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target number of performance shares to be earned | 50.00% | 50.00% |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards granted | 50.00% | 50.00% |
Grant date fair value | $ 0.2 | $ 6.9 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards granted | 50.00% | 50.00% |
Grant date fair value | $ 0.2 | $ 7 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share Basic And Diluted [Line Items] | ||||
Potentially dilutive shares | 6,000 | 2,000 | 6,000 | 2,000 |
Shares from treasury stock utilized by the Stock Incentive Plan | 100,000 | 200,000 | 29,000 | 200,000 |
Schedule of Actual Weighted Ave
Schedule of Actual Weighted Average Shares Used in Calculating EPS (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ||||
Weighted average shares basic | 88.2 | 88 | 88.2 | 88.2 |
Effect of dilutive securities: | ||||
stock options/share awards | 0.2 | 0.3 | 0.2 | 0.2 |
Weighted average shares diluted | 88.4 | 88.3 | 88.4 | 88.4 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Segment Information Sales Inclu
Segment Information Sales Including Intersegment Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ 2,578.5 | $ 2,291.5 | $ 5,008.5 | $ 4,465.6 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 2,593.9 | 2,302.4 | 5,039 | 4,484 |
Operating Segments | Passive Safety | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 1,996.1 | 1,925.3 | 3,984.8 | 3,755.7 |
Operating Segments | Electronics | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 597.8 | 377.1 | 1,054.2 | 728.3 |
Corporate and other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 1.6 | 2.9 | 1.9 | 7.1 |
Intersegment Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ (17) | $ (13.8) | $ (32.4) | $ (25.5) |
Segment Information Income Befo
Segment Information Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment operating income | $ 212.7 | $ 208.7 | $ 417.9 | $ 288.7 |
Interest and other non-operating expenses, net | (12.4) | (15.8) | (27.9) | (32.6) |
Income from equity method investments | 0.1 | 1.6 | 0.7 | 2.9 |
Income before income taxes | 200.4 | 194.5 | 390.7 | 259 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment operating income | 221.7 | 207.6 | 425.1 | 279.8 |
Operating Segments | Passive Safety | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment operating income | 206.8 | 195.7 | 398.4 | 258.9 |
Operating Segments | Electronics | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment operating income | 14.9 | 11.9 | 26.7 | 20.9 |
Corporate and other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment operating income | $ (9) | $ 1.1 | $ (7.2) | $ 8.9 |
Segment Information Capital Exp
Segment Information Capital Expenditures (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures | $ 131.7 | $ 115.2 | $ 223.5 | $ 250 |
Corporate and other | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures | 3.5 | 0.9 | 6.3 | 2.9 |
Passive Safety | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures | 100.5 | 101.2 | 173.3 | 222.4 |
Electronics | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital expenditures | $ 27.7 | $ 13.1 | $ 43.9 | $ 24.7 |
Segment Information Depreciatio
Segment Information Depreciation and Amortization (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of Depreciation by Segment [Line Items] | ||||
Depreciation and amortization | $ 96.7 | $ 75.8 | $ 181.8 | $ 149.5 |
Corporate and other | ||||
Reconciliation of Depreciation by Segment [Line Items] | ||||
Depreciation and amortization | 2.2 | 1 | 4.4 | 2.2 |
Passive Safety | ||||
Reconciliation of Depreciation by Segment [Line Items] | ||||
Depreciation and amortization | 69.4 | 63.7 | 137.6 | 125.5 |
Electronics | ||||
Reconciliation of Depreciation by Segment [Line Items] | ||||
Depreciation and amortization | $ 25.1 | $ 11.1 | $ 39.8 | $ 21.8 |
Segment Information Segment Ass
Segment Information Segment Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 8,244.3 | $ 7,525.5 | |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 7,525 | 6,505.8 | |
Operating Segments | Passive Safety | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 5,790 | 5,539.3 | |
Operating Segments | Electronics | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,735 | 966.5 | |
Corporate and other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 719.3 | $ 1,019.7 |
[1] | Corporate and other assets mainly consist of cash and cash equivalents, income taxes and equity method investments. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - Multi-Currency Revolving Credit Facility Agreement | Jul. 14, 2016USD ($)Bank |
Subsequent Event [Line Items] | |
Revolving credit facility borrowing capacity | $ | $ 1,100,000,000 |
Number of banks | Bank | 14 |
Revolving credit facility, maturity date | 2021-07 |
Revolving credit facility, possible maturity extension period | 2 years |
Percentage of commitment fee on undrawn amount | 0.08% |
Percentage of commitment fee as compared to applicable margin rate | 35.00% |
Banks Rated A- or Above | |
Subsequent Event [Line Items] | |
Percentage of applicable margin rate | 0.225% |
Maximum | |
Subsequent Event [Line Items] | |
Loan maturity period | 5 years |