Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 13, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ALV | ||
Entity Registrant Name | AUTOLIV INC | ||
Entity Central Index Key | 1,034,670 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 87,149,242 | ||
Entity Public Float | $ 8,989 |
Consolidated Statements of Net
Consolidated Statements of Net Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
Net sales | $ 8,678.2 | $ 8,136.8 | $ 7,921.6 | |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | |
Cost of sales | $ (6,966.9) | $ (6,457.1) | $ (6,293.6) | |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | |
Gross profit | $ 1,711.3 | $ 1,679.7 | $ 1,628 | |
Selling, general and administrative expenses | (390.3) | (406.6) | (394.4) | |
Research, development and engineering expenses, net | (412.6) | (370.6) | (357.3) | |
Amortization of intangibles | (11.3) | (11.2) | (10.5) | |
Other income (expense), net | (211.1) | (31.7) | (34.8) | |
Operating income | 686 | 859.6 | 831 | |
Income from equity method investments | 3.6 | 1.7 | 2.6 | |
Interest income | 6.9 | 7.4 | 4.5 | |
Interest expense | (66.1) | (61.1) | (62.2) | |
Other non-operating items, net | (18) | (15.2) | 8.3 | |
Income from continuing operations before income taxes | 612.4 | 792.4 | 784.2 | |
Income tax expense | (234.9) | (204.4) | (224.3) | |
Income from continuing operations | 377.5 | 588 | 559.9 | |
(Loss) income from discontinued operations, net of income taxes | (193.8) | (285) | 1.7 | |
Net income | [1] | 183.7 | 303 | 561.6 |
Less: Net income from continuing operations attributable to non-controlling interest | 1.6 | 2 | 1.5 | |
Less: Net loss from discontinued operations attributable to non-controlling interest | (8.3) | (126.1) | (7) | |
Net income attributable to controlling interest | 190.4 | 427.1 | 567.1 | |
Amounts attributable to controlling interest: | ||||
Net income from continuing operations | 375.9 | 586 | 558.4 | |
Net (Loss) income from discontinued operations | (185.5) | (158.9) | 8.7 | |
Net income attributable to controlling interest | $ 190.4 | $ 427.1 | $ 567.1 | |
Earnings per share continuing operations - basic | [2] | $ 4.32 | $ 6.70 | $ 6.33 |
(Loss) earnings per share discontinuing operations - basic | [2] | (2.13) | (1.82) | 0.10 |
Basic earnings per share | 2.19 | 4.88 | 6.43 | |
Earnings per share continuing operations - diluted | [2] | 4.31 | 6.68 | 6.32 |
(Loss) earnings per share discontinuing operations - diluted | [2] | (2.13) | (1.81) | 0.10 |
Diluted earnings per share | $ 2.18 | $ 4.87 | $ 6.42 | |
Weighted average number of shares outstanding, net of treasury shares (in millions) | [3] | 87.1 | 87.5 | 88.2 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | [3] | 87.3 | 87.7 | 88.4 |
Cash dividend per share - declared | $ 2.48 | $ 2.40 | $ 2.32 | |
Cash dividend per share - paid | $ 2.46 | $ 2.38 | $ 2.30 | |
[1] | See Note 15 for further details – includes tax effects where applicable. | |||
[2] | Participating share awards with the right to receive dividend equivalents are (under the two class method) excluded from the earnings per share calculation (see Note 23 in this Annual Report). | |||
[3] | The Company’s unvested RSUs and PSs, of which some included the right to receive non-forfeitable dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | [1] | $ 183.7 | $ 303 | $ 561.6 |
Other comprehensive (loss) income before tax: | ||||
Change in cumulative translation adjustments | (150.2) | 272.1 | (156.3) | |
Net change in cash flow hedges | 0.9 | (8.9) | 7.9 | |
Net change in unrealized components of defined benefit plans | 14.2 | 31.9 | (24.6) | |
Other comprehensive (loss) income, before tax | (135.1) | 295.1 | (173) | |
Tax effect allocated to other comprehensive (loss) income | (4.1) | (7.8) | 7.6 | |
Other comprehensive (loss) income, net of tax | (139.2) | 287.3 | (165.4) | |
Comprehensive income | [1] | 44.5 | 590.3 | 396.2 |
Less: Comprehensive loss attributable to non-controlling interest | (7.4) | (114.8) | (13.9) | |
Comprehensive income attributable to controlling interest | $ 51.9 | $ 705.1 | $ 410.1 | |
[1] | See Note 15 for further details – includes tax effects where applicable. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash and cash equivalents | $ 615.8 | $ 959.5 | |
Receivables, net | 1,652.1 | 1,696.7 | |
Inventories, net | 757.9 | 704.3 | |
Income tax receivables | 34.1 | 41.2 | |
Prepaid expenses | 208.6 | 153 | |
Other current assets | 1.9 | 2.8 | |
Related party receivables | 15 | ||
Current assets, discontinued operations | 647.2 | ||
Total current assets | 3,285.4 | 4,204.7 | |
Property, plant and equipment, net | 1,690.1 | 1,608.9 | |
Investments and other non-current assets | 323.5 | 341 | |
Goodwill | 1,389.9 | 1,397 | |
Intangible assets, net | 32.7 | 42.6 | |
Non-current assets, discontinued operations | 955.7 | ||
Total assets | 6,721.6 | 8,549.9 | |
Liabilities and equity | |||
Short-term debt | [1] | 620.7 | 19.7 |
Accounts payable | 978.3 | 957.3 | |
Accrued expenses | 935.4 | 829.5 | |
Income tax payable | 64.9 | 81.9 | |
Other current liabilities | 202.5 | 198 | |
Related party liabilities | 63.7 | ||
Current liabilities, discontinued operations | 568.2 | ||
Total current liabilities | 2,865.5 | 2,654.6 | |
Long-term debt | [1] | 1,609 | 1,310.7 |
Pension liability | 198.2 | 206.8 | |
Other non-current liabilities | 152.1 | 144.3 | |
Non-current liabilities, discontinued operations | 64.1 | ||
Total non-current liabilities | 1,959.3 | 1,725.9 | |
Commitments and contingencies | |||
Common stock | [2] | 102.8 | 102.8 |
Additional paid-in capital | 1,329.3 | 1,329.3 | |
Retained earnings | 2,041.8 | 4,079.2 | |
Accumulated other comprehensive loss | [3] | (423.2) | (287.5) |
Treasury stock (15.7 and 15.8 shares, respectively) | (1,167) | (1,188.7) | |
Total controlling interest’s equity | 1,883.7 | 4,035.1 | |
Non-controlling interest | 13.1 | 134.3 | |
Total equity | [4] | 1,896.8 | 4,169.4 |
Total liabilities and equity | $ 6,721.6 | $ 8,549.9 | |
[1] | Debt as reported in balance sheet. | ||
[2] | Number of shares: 350 million authorized, 102.8 million issued for both years, and 87.1 and 87.0 million outstanding, net of treasury shares, for 2018 and 2017, respectively. | ||
[3] | The components of Other Comprehensive Income (Loss) are net of any related income tax effects. | ||
[4] | See Note 15 for further details – includes tax effects where applicable. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Treasury stock, Shares | 15,700,000 | 15,800,000 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 102,800,000 | 102,800,000 |
Common stock, shares outstanding | 87,100,000 | 87,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income continuing operations | $ 377.5 | $ 588 | $ 559.9 |
Net income discontinued operations | (193.8) | (285) | 1.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 397.1 | 425.8 | 383 |
Legal provision | 210 | ||
Goodwill, impairment charge | 234.2 | ||
Deferred income taxes | 3 | (47.2) | (24.8) |
Loss from equity method investments, net of dividends | 31.9 | 38.1 | 1 |
Net change in: | |||
Receivables and other assets, gross | (48.4) | (102.2) | (292.3) |
Inventories, gross | (123.9) | (21) | (72.6) |
Accounts payable and accrued expenses | (37.8) | 112.3 | 271.2 |
Income taxes | (19.2) | 10.6 | 15.9 |
Other, net | (5.8) | (17.7) | 25.4 |
Net cash provided by operating activities | 590.6 | 935.9 | 868.4 |
Investing activities | |||
Expenditures for property, plant and equipment | (560) | (580.1) | (506.8) |
Proceeds from sale of property, plant and equipment | 5.2 | 10.5 | 8.2 |
Acquisition of intangible assets | (1.1) | ||
Acquisition of businesses and interest in affiliates, net of cash acquired | (72) | (125.3) | (226.3) |
Net proceeds from divestitures | 1.4 | ||
Other | (0.9) | (3.8) | |
Net cash used in investing activities | (627.7) | (697.3) | (726) |
Financing activities | |||
Net decrease in short-term debt | 355.4 | (208.6) | (2.7) |
Issuance of long-term debt, net of discount | 582.2 | ||
Debt issuance costs | (2.6) | ||
Dividends paid to non-controlling interest | (2.1) | (0.1) | (1.7) |
Dividends paid | (214.3) | (208.7) | (202.8) |
Shares repurchased | (157) | ||
Common stock options exercised | 8.2 | 7.9 | 5.9 |
Capital contribution to Veoneer | (971.8) | ||
Other, net | 0.3 | 1.1 | |
Net cash used in financing activities | (245) | (566.2) | (200.2) |
Effect of exchange rate changes on cash and cash equivalents | (61.6) | 60.4 | (49) |
Decrease in cash and cash equivalents | (343.7) | (267.2) | (106.8) |
Cash and cash equivalents at beginning of year | 959.5 | 1,226.7 | 1,333.5 |
Cash and cash equivalents at end of year | $ 615.8 | $ 959.5 | $ 1,226.7 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | Total parent shareholders' equity | Non-controlling interest | |
Balance at Dec. 31, 2015 | $ 3,468.1 | [1] | $ 102.8 | $ 1,329.3 | $ 3,499.4 | $ (408.5) | $ (1,067.4) | $ 3,455.6 | $ 12.5 |
Balance, shares at Dec. 31, 2015 | 102.8 | ||||||||
Comprehensive Income: | |||||||||
Net income | 561.6 | [1] | 567.1 | 567.1 | (5.5) | ||||
Net change in cash flow hedges | 7.9 | [1] | 7.9 | 7.9 | |||||
Foreign currency translation | (156.3) | [1] | (147.7) | (147.7) | (8.6) | ||||
Pension liability | (17) | [1] | (17.2) | (17.2) | 0.2 | ||||
Comprehensive income | 396.2 | [1] | 410.1 | (13.9) | |||||
Stock-based compensation | 16.2 | [1] | 16.2 | 16.2 | |||||
Cash dividends declared | (204.7) | [1] | (204.7) | (204.7) | |||||
Dividends paid to non-controlling interest on subsidiary shares | (1.7) | [1] | (1.7) | ||||||
Investment in subsidiary by non-controlling interest | 252.3 | [1] | 252.3 | ||||||
Balance at Dec. 31, 2016 | 3,926.4 | [1] | $ 102.8 | 1,329.3 | 3,861.8 | (565.5) | (1,051.2) | 3,677.2 | 249.2 |
Balance, shares at Dec. 31, 2016 | 102.8 | ||||||||
Comprehensive Income: | |||||||||
Net income | 303 | [1] | 427.1 | 427.1 | (124.1) | ||||
Net change in cash flow hedges | (8.9) | [1] | (8.9) | (8.9) | |||||
Foreign currency translation | 272.1 | [1] | 263 | 263 | 9.1 | ||||
Pension liability | 24.1 | [1] | 23.9 | 23.9 | 0.2 | ||||
Comprehensive income | 590.3 | [1] | 705.1 | (114.8) | |||||
Stock-based compensation | 19.5 | [1] | 19.5 | 19.5 | |||||
Cash dividends declared | (209.7) | [1] | (209.7) | (209.7) | |||||
Dividends paid to non-controlling interest on subsidiary shares | (0.1) | [1] | (0.1) | ||||||
Repurchased shares | (157) | [1] | (157) | (157) | |||||
Balance at Dec. 31, 2017 | $ 4,169.4 | [1] | $ 102.8 | 1,329.3 | 4,079.2 | (287.5) | (1,188.7) | 4,035.1 | 134.3 |
Balance, shares at Dec. 31, 2017 | 102.8 | 102.8 | |||||||
Comprehensive Income: | |||||||||
Net income | $ 183.7 | [1] | 190.4 | 190.4 | (6.7) | ||||
Net change in cash flow hedges | 0.9 | [1] | 0.9 | 0.9 | |||||
Foreign currency translation | (150.2) | [1] | (149.5) | (149.5) | (0.7) | ||||
Pension liability | 10.1 | [1] | 10.1 | 10.1 | |||||
Comprehensive income | 44.5 | [1] | 51.9 | (7.4) | |||||
Stock-based compensation | 21.7 | [1] | 21.7 | 21.7 | |||||
Cash dividends declared | (216.7) | [1] | (216.7) | (216.7) | |||||
Dividends paid to non-controlling interest on subsidiary shares | (2.2) | [1] | (2.2) | ||||||
Adjustment due to adoption of ASU | ASU 2014-09 | 3.3 | [1] | 3.3 | 3.3 | |||||
Adjustment due to adoption of ASU | ASU 2018-02 | 0 | [1] | 10.2 | (10.2) | 0 | ||||
Distribution of Veoneer | (2,122.9) | [1] | (2,024.3) | 13 | (2,011.3) | (111.6) | |||
Other | (0.3) | [1] | (0.3) | (0.3) | |||||
Balance at Dec. 31, 2018 | $ 1,896.8 | [1] | $ 102.8 | $ 1,329.3 | $ 2,041.8 | $ (423.2) | $ (1,167) | $ 1,883.7 | $ 13.1 |
Balance, shares at Dec. 31, 2018 | 102.8 | 102.8 | |||||||
[1] | See Note 15 for further details – includes tax effects where applicable. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation NATURE OF OPERATIONS Through its operating subsidiaries, Autoliv is a supplier of automotive safety systems with a broad range of product offerings, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts and steering wheels. Autoliv is also a supplier of anti-whiplash systems, pedestrian protection systems and child seats. PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include Autoliv, Inc. and all companies over which Autoliv, Inc. directly or indirectly exercises control, which as a general rule means that the Company owns more than 50% of the voting rights. Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant to the VIE. All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. Investments in affiliated companies in which the Company exercises significant influence over the operations and financial policies, but does not control, are reported using the equity method of accounting. Generally, the Company owns between 20 and 50 percent of such investments. DISCONTINUED OPERATIONS On June 29, 2018 (the “Distribution Date”), Autoliv completed the spin-off of its former Electronics segment (the “spin-off”) through the distribution of all of the issued and outstanding stock of Veoneer, Inc. (“Veoneer”). To effect the spin-off, Autoliv distributed to each Autoliv stockholder one share of Veoneer common stock, par value $1.00 per share, for every one share of Autoliv common stock, par value $1.00 per share, held by such person on the common stock record date, and each Autoliv Swedish Depository Receipt (SDR) holder received one Veoneer SDR for each Autoliv SDR held by such person on the applicable SDR record date. On July 2, 2018, Veoneer’s common stock began regular-way trading on the New York Stock Exchange under the symbol “VNE” and its SDRs began trading on Nasdaq Stockholm under the symbol “VNE SDB.” The Company did not retain any equity interest in Veoneer. In accordance with U.S. GAAP, the financial position and results of operations of the Electronics business are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. The sum of the individual earnings per share amounts from continuing operations and discontinued operations may not equal the total company earnings per share amounts due to rounding. The cash flows and comprehensive income related to the Electronics business have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows and Comprehensive Income, respectively, for all periods presented. With the exception of Note 3, the Notes to the Consolidated Financial Statements reflect the continuing operations of Autoliv. See Note 3 - Discontinued Operations below for additional information regarding discontinued operations. On April 1, 2018, in preparation for the spin-off, pursuant to the terms of a master transfer agreement entered into between Autoliv and Veoneer, assets related to the Electronics business were transferred to, and liabilities related to the Electronics business were retained or assumed by Veoneer, however, responsibility for certain product, warranty and recall liabilities for Electronics products manufactured prior to April 1, 2018 was retained by Autoliv as provided in the Distribution Agreement between Autoliv and Veoneer. Certain amounts in prior year’s consolidated financial statements and related footnotes thereto have been reclassified, unless otherwise noted, to conform with the current year presentation as a result of the spin-off of Veoneer. SEGMENT REPORTING Upon completion of the spin-off at June 30, 2018, Autoliv concluded that it has one reportable segment, based on the way the Company currently evaluates its financial performance and manages its operations. The Company will re-evaluate the one reportable segment as the operating model evolves, including the management structure. Prior to the completion of the spin-off, the Company had two reportable segments, Electronics and Passive Safety. The Company’s Passive Safety reportable segment includes the Company’s airbag and seatbelt products and components. For more information on our segment, see Note 22. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies BUSINESS COMBINATIONS Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis. It is classified as a liability based on appropriate GAAP. EQUITY METHOD INVESTMENTS Investments accounted for under the equity method, means that a proportional share of the equity method investment’s net income increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of Net Income, the proportional share of the net income (loss) is reported as Income from equity method investments. USE OF ESTIMATES The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of variable consideration for our contracts with customers, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and product liabilities, restructuring charges, uncertain tax positions, valuation allowances and legal proceedings. Actual results could differ from those estimates. REVENUE RECOGNITION In accordance with ASC 606, Revenue from Contracts with Customers In addition, from time to time, Autoliv may make payments to customers in connection with ongoing and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments unless the payment concession can be clearly linked to the future business. If the payments are capitalized, the amounts are amortized to revenue as the related goods are transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of goods and services The following is a description of principal activities from which the Company generates its revenue. The Company has after the spin-off of its Electronics business currently one operating segment, Passive safety systems, which includes airbag and seatbelt products and components. The Company generates revenue from the sale of production parts to original equipment manufacturers (“OEMs”). The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any price concessions or annual price adjustments, is based on their stand-alone selling prices for each of the products. The stand-alone selling prices are determined based on the cost-plus margin approach. The Company recognizes revenue for production parts primarily at a point in time. For production parts with revenue recognized at a point in time, the Company recognizes revenue upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically FOB shipping point). There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and a related asset and associated cost of goods sold and inventory. However, the financial impact of these contracts is immaterial considering the very short production cycles and limited inventory days on hand, which is typical for the automotive industry. The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e. price concessions or annual price adjustments). Customers typically pay for the production parts based on customary business practices. RESEARCH, DEVELOPMENT AND ENGINEERING (R,D&E) Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of expense reimbursements from contracts to perform engineering design and product development fulfillment activities related to the production of parts. Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. The aggregate amount of such assets is not significant in any period presented. Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer funded tooling is met or the criteria for capitalization as Property, Plant & Equipment (P,P&E) for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Net Income as Cost of sales. STOCK BASED COMPENSATION The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation - Stock Compensation. The Company records the compensation expense for awards under the Stock Incentive Plan, including Restricted Stock Units (RSUs), Performance Shares (PSs) and stock options (SOs), over the respective vesting period. For further details, see Note 17. INCOME TAXES Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or refundable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. The Company classifies deferred tax assets and liabilities as non-current in the Consolidated Balance Sheet. Tax assets and liabilities are not offset unless attributable to the same tax jurisdiction and netting is possible according to law and, as it relates to payables and receivables, expected to take place in the same period. Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized and measured in the financial statements when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax benefits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized and measured if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. EARNINGS PER SHARE The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). The Company’s unvested RSUs, of which some include the right to receive non-forfeitable dividend equivalents, are considered participating securities. The diluted EPS reflects the potential dilution that could occur if common stock were issued for awards under the Company’s Stock Incentive Plan and is calculated using the more dilutive method of either the two-class method or the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. For unvested restricted stock, assumed proceeds under the treasury stock method will include unamortized compensation cost and windfall tax benefits or shortfalls. Post spin-off assumed proceeds under the treasury stock method related to RSUs will only include unamortized compensation cost related to Autoliv employees holding Autoliv RSUs. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. For further details, see Notes 17 and 23. CASH EQUIVALENTS The Company considers all highly liquid investment instruments purchased with an original maturity of three months or less to be cash equivalents. RECEIVABLES The Company has guidelines for calculating the allowance for bad debts. In determining the amount of a bad debt allowance, management uses its judgment to consider factors such as the age of the receivables, the Company’s prior experience with the customer, the experience of other enterprises in the same industry, the customer’s ability to pay, and/or an appraisal of current economic conditions. Collateral is typically not required. There can be no assurance that the amount ultimately realized for receivables will not be materially different than that assumed in the calculation of the allowance. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company uses derivative financial instruments, primarily forwards, options and swaps to reduce the effects of fluctuations in foreign exchange rates, interest rates and the resulting variability of the Company’s operating results. On the date that a derivative contract is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge) or (3) an economic hedge not applying special hedge accounting pursuant to ASC 815. When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statements of Net Income along with the offsetting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statements of Net Income when the hedge transaction affects net earnings. 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. All derivatives are recognized in the consolidated financial statements at fair value. For certain other derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. For further details on the Company’s financial instruments, see Notes 5 and 14. INVENTORIES The cost of inventories is computed according to the first-in first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment are recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life or the lease term. Amortization on capital leases is recognized with depreciation expense in the Consolidated Statements of Net Income over the shorter of the assets’ expected life or the lease contract term. Repairs and maintenance are expensed as incurred. LONG-LIVED ASSET IMPAIRMENT The Company evaluates the carrying value and useful lives of long-lived assets other than goodwill when indications of impairment are evident or it is likely that the useful lives have decreased, in which case the Company depreciates the assets over the remaining useful lives. Impairment testing is primarily done by using the cash flow method based on undiscounted future cash flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the respective carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the carrying amounts of the long-lived asset are considered recoverable and an impairment cannot be recorded. However, if the carrying amount of a group of assets exceeds the undiscounted cash flows, an entity must then measure the long-lived assets’ fair value to determine whether an impairment loss should be recognized, generally using a discounted cash flow model. GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized, but is subject to at least an annual review for impairment. Other intangible assets, principally related to acquired technology, are amortized over their useful lives which range from 3 to 25 years. The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. For 2018 the Company has opted to use a qualitative assessment for impairment testing. The qualitative assessment permits the Company to assess whether it is more than likely than not (i.e. a likelihood of greater than 50%) that an indefinite-lived intangible asset is impaired. If the Company concludes based on the qualitative assessment that it is not more likely than not that the fair value of an indefinite-lived intangible assets is less than its carrying amount, it would not have to quantitatively determine the asset’s fair value. In conducting its qualitative impairment testing, the Company has used the most recent fair value calculation for its indefinite-lived intangible assets as the starting point for the qualitative assessment. The Company has also considered external factors that could affect the significant inputs used to determine fair value. There were no impairments of goodwill related to the Company’s continuing operations from 2016 through 2018. WARRANTIES AND RECALLS The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs typically include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the defective part. Insurance receivables, related to recall issues covered by the insurance, are included within other current assets in the Consolidated Balance Sheets. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. RESTRUCTURING PROVISIONS The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. Estimates of restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates that restructuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. PENSION OBLIGATIONS The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefits that each employee will receive for services performed during a specified period of employment. The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any) (see Note 20). The plan assets are measured at fair value. The inputs to the fair value measurement of the plan assets are mainly level 2 inputs (see Note 5). CONTINGENT LIABILITIES Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters (see Note 18). The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. The Company records liabilities for claims, lawsuits and proceedings when they are probable and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. The Company believes, based on currently available information, that the resolution of outstanding matters, other than the antitrust matters described in Note 18, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. TRANSLATION OF NON-U.S. SUBSIDIARIES The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. The statements of operations of these subsidiaries is translated into U.S. dollars using the average exchange rates for the year. Translation differences are reflected in equity as a component of OCI. RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES Receivables and liabilities not denominated in functional currencies are converted at year-end exchange rates. Net transaction gains/(losses), reflected in the Consolidated Statements of Net Income amounted to $(22.1) million in 2018, $(27.0) million in 2017 and $(4.3) million in 2016, and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other non-operating items, net if they relate to financial receivables and liabilities. NEW ACCOUNTING STANDARDS Adoption of New Accounting Standards In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. In the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Balance Sheet (Dollars in millions) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets Inventories, net 1) $ 859.1 $ (17.3 ) $ 841.8 Other current assets 1) 228.9 22.0 250.9 Equity Retained Earnings 1) 4,079.2 3.3 4,082.5 1) Impact at adoption which included both continuing and discontinued operations. Year ended December 31, 2018 Income Statement (Dollars in millions) As Reported Balances without adoption of ASU 2014-09 Effect of Changes Net sales $ 8,678.2 $ 8,673.7 $ 4.5 Cost of sales (6,966.9 ) (6,963.1 ) (3.8 ) Operating income 686.0 685.3 0.7 As of December 31, 2018 Balance Sheet (Dollars in millions) As Reported Balances without adoption of ASU 2014-09 Effect of Changes Assets Inventories, net $ 757.9 $ 773.6 $ (15.7 ) Other current assets 244.6 225.1 19.5 Equity Retained Earnings 2,041.8 2,039.1 2.7 Accounting Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Com pensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, In August 2017, the FASB issued ASU 2017-12, Derivative and Hedging (Topic 815), Targeted improvements to accounting for hedging activities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), During the fourth quarter, the Company continued its process to identify leasing arrangements and to compare its accounting policies and practices to the requirements of the new standard. Specifically, the Company is continuing to assess whether there are any “embedded leases” in arrangements with its suppliers and customers that may result in right to use assets or in the Company being a lessor for tools they own that are dedicated to a specific customer. In addition, the Company has implemented a new system to assist with lease accounting. The Company regularly enters into operating leases, for which current GAAP does not require recognition on the balance sheet. The Company anticipates that the adoption of ASU 2016-02 will primarily result in the recognition of most operating leases on its balance sheet resulting in an increase in reported right-of-use assets and leasing liabilities. The Company will continue to assess the impact from the new standard, including consideration of control and process changes to capture lease data necessary to apply ASU 2016-02. The Company anticipates that the adoption of the new standard will result in recording lease assets and lease liabilities in the range of $165 million and $180 million as of January 1, 2019. In addition, the Company does not anticipate a material impact to the financial statements where they are deemed to be the lessor in an “embedded lease” arrangement. RECLASSIFICATIONS Certain prior-year amounts have been reclassified to conform to current year presentation (see Note 1 regarding discontinued operations). |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations As discussed in Note 1. Basis of Presentation above, on June 29, 2018, the Company completed the spin-off of Veoneer and the requirements for the presentation of Veoneer as a discontinued operation were met on that date. Accordingly, Veoneer’s historical financial results are reflected in the Company’s Consolidated Financial Statements as discontinued operations. The Company did not allocate any general corporate overhead or interest expense to discontinued operations. The financial results of Veoneer are presented as loss from discontinued operations, net of income taxes in the Consolidated Statements of Income. The following table presents the financial results of Veoneer (dollars in millions). 2018 includes six months of discontinued operations. Years ended December 31 2018 2017 2016 Net sales $ 1,122.9 $ 2,245.8 $ 2,152.0 Cost of sales (896.4 ) (1,776.5 ) (1,723.0 ) Gross profit 226.5 469.3 429.0 Selling, general and administrative expenses (59.7 ) (83.1 ) (81.7 ) Research, development and engineering expenses, net (224.0 ) (370.3 ) (293.7 ) Goodwill, Impairment charge — (234.2 ) — Amortization of intangibles (10.5 ) (35.8 ) (33.2 ) Other income (expense), net (53.4 ) (0.2 ) (3.7 ) Operating loss (121.1 ) (254.3 ) 16.7 Loss from equity method investments (29.9 ) (30.7 ) — Interest income 0.7 — — Interest expense (0.4 ) (0.1 ) (0.2 ) Other non-operating items, net 0.5 (0.8 ) 3.1 Loss before income taxes (150.2 ) (285.9 ) 19.6 Income tax (expense) benefit (43.6 ) 0.9 (17.9 ) Loss from discontinued operations, net of income taxes (193.8 ) (285.0 ) 1.7 Less: Net loss attributable to non-controlling interest (8.3 ) (126.1 ) (7.0 ) Net loss from discontinued operations $ (185.5 ) $ (158.9 ) $ 8.7 The Company has incurred $84.8 million in separation costs related to the spin-off of Veoneer, of which $76.3 million has been incurred 2018 year to date and is reported in Other income (expense), net. These costs are primarily related to professional fees associated with planning the spin-off, as well as spin-off activities within finance, tax, legal and information system functions and certain investment banking fees incurred upon the completion of the spin-off. The following table summarizes the carrying value of major classes of assets and liabilities of Veoneer, reclassified as assets and liabilities of discontinued operations at December 31, 2017 (dollars in millions). At December 31, 2017 ASSETS Receivables, net $ 460.5 Inventories, net 154.8 Other current assets 31.9 Total current assets, discontinued operations 647.2 Property, plant and equipment, net 364.2 Investments and other non-current assets 177.5 Goodwill 291.8 Intangible assets, net 122.2 Total non-current assets, discontinued operations $ 955.7 LIABILITIES Accounts payable $ 323.5 Accrued expenses 199.1 Other current liabilities 45.6 Total current liabilities, discontinued operations 568.2 Long-term debt 11.0 Pension liability 19.1 Other non-current liabilities 34.0 Total non-current liabilities, discontinued operations $ 64.1 In connection with the spin-off, Autoliv entered into definitive agreements with Veoneer that, among other matters, set forth the terms and conditions of the spin-off and provide a framework for Autoliv’s relationship with Veoneer after the spin-off, including the following (collectively, the “Spin-off Agreements”): Distribution Agreement The Distribution Agreement sets forth the principal transactions taken by Veoneer and by Autoliv in connection with the spin-off and the terms to govern certain aspects of the parties’ relationship following the spin-off. The Distribution Agreement also provides for cross-indemnities that, except as otherwise provided in the Distribution Agreement, are principally designed to place financial responsibility for the obligations and liabilities of Veoneer’s business with Veoneer and financial responsibility for the obligations and liabilities of Autoliv’s business with Autoliv. However, Autoliv has agreed to indemnify Veoneer for certain warranty, recall and product liabilities for Electronics products manufactured prior to April 1, 2018, and has retained an indemnification liability. Amended and Restated Transition Services Agreement Pursuant to the Amended and Restated Transition Services Agreement, Autoliv or one of its subsidiaries will provide various services to Veoneer and its subsidiaries and Veoneer or one of Employee Matters Agreement The Employee Matters Agreement governs Autoliv’s and Veoneer’s compensation and employee benefit obligations with respect to the employees and non-employee directors of each company. Pursuant to the Agreement, the Company transferred to Veoneer pension benefits and postretirement benefits other than pension related to Veoneer employees. The transfer of assets and obligations to Veoneer Tax Matters Agreement Pursuant to the Tax Matters Agreement, Autoliv and Veoneer allocated the liability for taxes and certain tax assets between the two companies. The Tax Matters Agreement also governs the parties’ respective rights, responsibilities, and obligations with respect to U.S. federal, state, local and foreign taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the spin-off and certain related transactions to qualify as tax-free for U.S. federal income tax purposes), tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, and assistance and cooperation in respect of tax matters. Pursuant to the Tax Matters Agreement, Autoliv is the primary obligor on all taxes which relate to any period prior to April 1, 2018. Consequently, the Company is liable for any transition taxes under the Tax Cuts and Jobs Act of 2017. Reseller Agreements Reseller agreements are primarily comprised of arrangements between Veoneer and Autoliv business units in Japan, the U. S., India and Sweden to address situations in which customers have not yet been able to update their systems to reflect Veoneer as the supplier. Under the terms of these agreements and based on the substance of the relationships with the customers, Veoneer has the responsibility to provide the products to the customers although orders may be placed with Autoliv and Autoliv may collect the cash for the associated invoices which is then remitted to Veoneer. Veoneer Capital Contribution In connection with the spin-off, Autoliv capitalized Veoneer with approximately $1 billion of cash. Net assets of $2,129 million, including approximately $1 billion of cash, were transferred to Veoneer on or prior to the Distribution Date, including $13 million of accumulated other comprehensive loss (primarily related to pension and cumulative translation adjustment) and the non-controlling interest of $112 million. This resulted in a $2,030 million reduction to retained earnings. The following table presents depreciation, amortization, capital expenditures, acquisition of businesses and significant non-cash items of the discontinued operations related to Veoneer (dollars in millions). 2018 includes six months of discontinued operations. Years ended December 31 2018 2017 2016 Depreciation $ 44.8 $ 82.9 $ 69.7 Amortization of intangible assets 10.5 35.8 33.2 Capital expenditures 71.1 109.6 100.9 Acquisition in affiliate, net 71.0 123.9 227.4 M/A-COM earn-out adjustment (14.0 ) (12.7 ) — Undistributed loss from equity method investment 29.9 30.7 — |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 4. Revenue Disaggregation of revenue In the following tables, revenue from the Company’s continuing operations is disaggregated by primary regions and products. Net Sales by Region (Dollars in millions) Years ended December 31 2018 2017 2016 China $ 1,522.2 $ 1,421.2 $ 1,385.4 Japan 827.9 787.0 718.6 Rest of Asia 844.8 789.9 726.2 Americas 2,735.1 2,435.2 2,548.0 Europe 2,748.2 2,703.5 2,543.4 Total net sales $ 8,678.2 $ 8,136.8 $ 7,921.6 Net Sales by Products (Dollars in millions) Years ended December 31 2018 2017 2016 Airbag Products and Other 1) $ 5,698.6 $ 5,343.2 $ 5,256.4 Seatbelt Products 1) 2,979.6 2,793.6 2,665.2 Total net sales $ 8,678.2 $ 8,136.8 $ 7,921.6 1) Contract balances The contract assets relate to the Company's rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. There have been no impairment losses recognized related to contract assets arising from the Company’s contracts with customers. Certain contracts have resulted in consideration in advance of fulfilling the performance obligations and the amounts received have been classified as contract liabilities. The following tables provides information about receivables, contract assets, and contract liabilities from contracts with customers. Contract Balances with Customers (Dollars in millions) At December 31 2018 2017 Receivables, net $ 1,652.1 $ 1,696.7 Contract assets 1) 19.5 — Contract liabilities 2) 29.4 33.0 1) 2) Receivables, net of allowance (Dollars in millions) At December 31 2018 2017 Receivables $ 1,659.4 $ 1,703.0 Allowance at beginning of period (6.3 ) (4.2 ) Net decrease/(increase) of allowance (1.3 ) (1.8 ) Translation difference 0.3 (0.3 ) Allowance at end of period (7.3 ) (6.3 ) Receivables, net of allowance $ 1,652.1 $ 1,696.7 Changes in the contract assets and the contract liabilities balances during the period are as follows: Change in Contract Balances with Customers (Dollars in millions) At December 31, 2018 Contract assets Contract liabilities Beginning balance $ — $ 33.0 Increases/(decreases) due to cumulative catch up adjustment 15.0 — Increases/(decreases) due to revenue recognized 75.6 (7.4 ) Increases/(decreases) due to cash received — — Increases/(decreases) due to transfer to receivables (71.1 ) — Translation difference — 3.8 Ending balance $ 19.5 $ 29.4 The increases/(decreases) in the table above related to contracts assets reflect the total adjustments needed to align revenue recognition for work completed but not billed at year end. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS The carrying value of cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and short-term debt approximate their fair value because of the short-term maturity of these instruments. The Company uses derivative financial instruments, “derivatives”, as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. 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. The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value. Under existing GAAP, there is a disclosure framework hierarchy associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The Company’s derivatives are all classified as Level 2 of the fair value hierarchy and there were 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 for the continuing operations as of December 31, 2018 and December 31, 2017. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at December 31, 2018 and December 31, 2017 have been presented on a gross basis. The amounts subject to netting agreements that the Company choose 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. The amounts subject to netting agreements that the Company choose not to offset are presented below. DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS There were no derivatives designated as hedging instruments as of December 31, 2018 and December 31, 2017 related to the continuing operations. 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 December 31, 2018 and December 31, 2017 were foreign exchange swaps. For 2018, the gains and losses recognized in other non-operating items, net are a loss of $1.5 million for derivative instruments not designated as hedging instruments. For 2017, the Company recognized a gain of $1.2 million in other non-operating items, net for derivative instruments not designated as hedging instruments. For 2016, the Company recognized a gain of $1.3 million in other non-operating items, net for derivative instruments not designated as hedging instruments. DECEMBER 31, 2018 DECEMBER 31, 2017 Fair Value Measurements Fair Value Measurements Derivative Derivative liability Derivative asset Derivative liability Nominal (Other current (Other current Nominal (Other current (Other current Description volume assets) liabilities) volume assets) liabilities) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign exchange swaps, less than 6 months 659.1 1) 1.9 2) 1.1 3) 468.2 4) 2.4 5) 0.3 6) TOTAL DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS $ 659.1 $ 1.9 $ 1.1 $ 468.2 $ 2.4 $ 0.3 1 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $659.1 million. 2 ) Net amount after deducting for offsetting swaps under ISDA agreements is $1.9 million. 3 ) Net amount after deducting for offsetting swaps under ISDA agreements is $1.1 million. 4 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $468.2 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. FAIR VALUE OF DEBT The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The fair value and carrying value of debt is summarized in the table below. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy. On June 18, 2018, Autoliv announced that it priced a 5-year bond offering of EUR 500 million in the Eurobond market (the “Notes”). The Notes were issued on June 26, 2018, at an issue price of 99.527%, and carry a coupon of 0.75% (paid annually in arrears), which implies a per annum yield of 0.847%. The fair value and carrying value of debt for the continuing operations are summarized in the table below (dollars in millions). DECEMBER 31, 2018 DECEMBER 31, 2018 DECEMBER 31, 2017 DECEMBER 31, 2017 CARRYING VALUE 1) FAIR VALUE CARRYING VALUE 1) FAIR VALUE LONG-TERM DEBT U.S. Private placement $ 1,041.0 $ 1,061.1 $ 1,310.5 $ 1,379.9 Eurobond 568.0 567.8 — — Other long-term debt — — 0.2 0.2 TOTAL $ 1,609.0 $ 1,628.9 $ 1,310.7 $ 1,380.1 SHORT-TERM DEBT Commercial paper $ 342.6 $ 342.6 $ — $ — Short-term portion of long-term debt 268.1 270.4 0.2 0.2 Overdrafts and other short-term debt 10.0 10.0 19.5 19.5 TOTAL $ 620.7 $ 623.0 $ 19.7 $ 19.7 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 nonrecurring basis including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment. 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 2018-2016, the Company did not record any material impairment charges on its long-lived assets for its continuing operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes INCOME BEFORE INCOME TAXES 2018 2017 2016 U.S. $ 47.0 $ 89.0 $ 172.0 Non-U.S. 565.4 703.4 612.2 Total $ 612.4 $ 792.4 $ 784.2 PROVISION FOR INCOME TAXES 2018 2017 2016 Current U.S. federal $ 31.6 $ 53.4 $ 79.2 Non-U.S. 192.7 162.8 167.6 U.S. state and local 10.1 9.9 3.5 Deferred U.S. federal 0.8 21.8 (15.8 ) Non-U.S. (0.2 ) (44.4 ) (9.7 ) U.S. state and local (0.1 ) 0.9 (0.5 ) Total income tax expense $ 234.9 $ 204.4 $ 224.3 EFFECTIVE INCOME TAX RATE 2018 2017 2016 U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Foreign tax rate variances 5.5 (7.4 ) (6.4 ) Tax credits (3.9 ) (3.3 ) (2.8 ) Change in Valuation Allowances (3.2 ) (4.8 ) 1.3 Current year losses with no benefit 0.5 0.3 1.2 Net operating loss carry-forwards (0.1 ) (3.7 ) (3.4 ) Changes in tax reserves 3.4 0.8 0.5 U.S. Expense Allocation 0.0 2.0 2.0 Earnings of equity investments (0.1 ) (0.1 ) (0.1 ) Withholding taxes 3.5 2.1 2.5 State taxes, net of federal benefit 1.1 0.3 0.2 Antitrust settlement 9.9 — — U.S. GILTI Tax 1.7 — — Change in U.S. tax rate — 3.0 — Deemed mandatory repatriation — 3.1 — Other, net (0.9 ) (1.5 ) (1.4 ) Effective income tax rate 38.4 % 25.8 % 28.6 % The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act makes broad and complex changes to the U.S. tax code, including reducing the U.S. federal corporate income tax rate from 35% to 21% for years beginning after December 31, 2017, requiring companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred and created new taxes on certain foreign sourced earnings. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017. SAB 118 was issued to address the application of U.S. GAAP in situations when a registrant did not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In 2017, we made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax and recorded provisional amounts. In the fourth quarter of 2018, the Company filed its 2017 Federal and State tax returns and finalized calculations related to transition tax and deferred tax assets and liabilities previously recorded in the year ended December 31, 2017. Final Impacts from the Tax Act Deferred tax assets and liabilities : In December 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future, which is generally 21%. There was not a material difference between the provisional amounts recorded for deferred tax assets and liabilities in December 2017 and the final amounts updated in the fourth quarter 2018 after the completion of the 2017 tax returns. Foreign tax effects: The one-time transition tax is based on our total post-1986 earnings and profits (E&P) that we previously deferred from U.S. income taxes. In December 2017, we recorded a provisional amount of income tax expense for the one-time transition tax. The final amount reported on the 2017 tax returns was not materially different from the amount previously recorded. However, due to the uncertainties inherent in the calculations of the transition tax and the determination of more than twenty years of E&P history, in the fourth quarter of 2018, we have recorded a tax reserve of $24 million related to the transition tax. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability relating to any remaining outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practical. Global Intangible Low Taxed Income (“GILTI”): The Tax Act created a new requirement that certain income (i.e., GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. Under U.S. GAAP, we are permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred or to factor such amounts into our measurement of our deferred taxes. We have elected to treat the impact of GILTI as a current-period expense when incurred. In 2018, the negative impact of GILTI on our effective tax rate is approximately 1.7% due to the cost of expenses allocated against GILTI that limit the foreign tax credits available for offset against the U.S. tax cost on the GILTI inclusion. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. On December 31, 2018, the Company had net operating loss carryforwards (NOL’s) of approximately $283 million, of which approximately $266 million have no expiration date. The remaining losses expire on various dates through 2029. The Company also has $9 million of U.S. Foreign Tax Credit carry forwards, which begin to expire in 2026 and $7 million of U.S. capital loss carryforwards which begin to expire in 2022. Valuation allowances have been established which partially offset the related deferred assets. Such allowances are primarily provided against NOL’s of companies that have perennially incurred losses, as well as the NOL’s of companies that are start-up operations and have not established a pattern of profitability. The Company assesses all available evidence, both positive and negative, to determine the amount of any required valuation allowance. In 2018, the Company recognized a tax benefit of $37 million due to the reversal of valuation allowances. This consisted primarily of the reversal of valuation allowances on deferred tax assets, net operating loss carryforwards, and foreign tax credits in Sweden and the reversal of valuation allowances against foreign tax credit carryforwards in the U.S. that were utilized in the final calculation of the transition tax. The foreign tax rate variance reflects the fact that approximately two-thirds of the Company’s non-U.S. pre-tax income is generated by business operations located in tax jurisdictions where the tax rate is between 20-30%. The tax rate from quarter to quarter and from year to year is also impacted by the mix of earnings and tax rates in various jurisdictions compared to the same periods or prior years. The Company has reserves for income taxes that may become payable in future periods as a result of tax audits. These reserves represent the Company’s best estimate of the potential liability for tax exposures. Inherent uncertainties exist in estimates of tax exposures due to changes in tax law, both legislated and concluded through the various jurisdictions’ court systems. The Company files income tax returns in the United States federal jurisdiction, and various states and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions, covering multiple years. The Company is no longer subject to income tax examination by the U.S. Federal tax authorities for years prior to 2015. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2010. The Company is undergoing tax audits in several non-U.S. jurisdictions and several U.S. state jurisdictions, covering multiple years. As of December 31, 2018, as a result of those tax examinations, the Company is not aware of any proposed income tax adjustments that would have a material impact on the Company’s financial statements, however, other audits could result in additional increases or decreases to the unrecognized tax benefits in some future period or periods. The Company recognizes interest and potential penalties accrued related to unrecognized tax benefits in tax expense. As of December 31, 2017, the Company had recorded $34.6 million for unrecognized tax benefits related to prior years, including $6.3 million of accrued interest and penalties. During 2018, the Company recorded a net increase of $24.0 million to income tax reserves for unrecognized tax benefits related to the transition tax reported on the 2017 tax return due to uncertainty surrounding the calculations. Also during 2018, the Company recorded a net decrease of $4.2 million to income tax reserves for other unrecognized tax benefits based on tax positions related to the current and prior years. The Company had $6.6 million accrued for the payment of interest and penalties as of December 31, 2018. Of the total unrecognized tax benefits of $54.4 million recorded at December 31, 2018, $4.0 million is classified as current income tax payable, and $50.4 million is classified as non-current tax payable included in Other Non-Current Liabilities on the Consolidated Balance Sheets. Substantially all of these reserves would impact the effective tax rate if released into income. The following table summarizes the activity related to the Company’s unrecognized tax benefits: UNRECOGNIZED TAX BENEFITS 2018 2017 2016 Unrecognized tax benefits at beginning of year $ 29.6 $ 27.2 $ 25.2 Increases as a result of tax positions taken during a prior period 24.0 2.0 4.5 Decreases as a result of tax positions taken during a prior period — — (0.2 ) Increases as a result of tax positions taken during the current period 4.7 6.8 5.8 Decreases as a result of tax positions taken during the current period (3.1 ) — (1.7 ) Decreases relating to settlements with taxing authorities (3.2 ) (7.1 ) (1.3 ) Decreases resulting from the lapse of the applicable statute of limitations (1.5 ) (0.3 ) (3.5 ) Translation Difference (0.9 ) 1.0 (1.6 ) Total unrecognized tax benefits at end of year $ 49.6 $ 29.6 $ 27.2 The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows. DEFERRED TAXES DECEMBER 31 2018 2017 2016 Assets Provisions $ 104.9 $ 107.3 $ 101.5 Costs capitalized for tax 18.2 18.6 16.8 Property, plant and equipment 13.0 14.2 18.2 Retirement Plans 50.1 50.0 65.5 Tax receivables, principally NOL’s 113.9 150.2 211.7 Deferred tax assets before allowances $ 300.1 $ 340.3 $ 413.7 Valuation allowances (71.0 ) (110.6 ) (199.6 ) Total $ 229.1 $ 229.7 $ 214.1 Liabilities Acquired intangibles $ (6.1 ) $ (6.6 ) $ (12.3 ) Statutory tax allowances (0.5 ) — — Distribution taxes (22.9 ) (22.8 ) (16.0 ) Other (10.1 ) (3.9 ) (4.9 ) Total $ (39.6 ) $ (33.3 ) $ (33.2 ) Net deferred tax asset $ 189.5 $ 196.4 $ 180.9 The following table summarizes the activity related to the Company’s valuation allowances: VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 2018 2017 2016 Allowances at beginning of year $ 110.6 $ 199.6 $ 177.7 Benefits reserved current year 6.4 22.9 32.3 Benefits recognized current year (36.9 ) (117.0 ) (13.8 ) Write-offs and other changes — (0.1 ) (0.5 ) Translation difference (9.1 ) 5.2 3.9 Allowances at end of year $ 71.0 $ 110.6 $ 199.6 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Receivables | 7. Receivables DECEMBER 31 2018 2017 2016 Receivables $ 1,659.4 $ 1,703.0 $ 1,519.3 Allowance at beginning of year $ (6.3 ) $ (4.2 ) $ (3.9 ) Reversal of allowance 0.9 0.9 0.5 Addition to allowance (3.8 ) (3.9 ) (1.5 ) Write-off against allowance 1.6 1.2 0.5 Translation difference 0.3 (0.3 ) 0.2 Allowance at end of year $ (7.3 ) $ (6.3 ) $ (4.2 ) Total receivables, net of allowance $ 1,652.1 $ 1,696.7 $ 1,515.1 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. Inventories DECEMBER 31 2018 2017 2016 Raw material $ 370.9 $ 333.2 $ 286.4 Work in progress 277.4 263.8 233.1 Finished products 194.7 187.9 166.2 Inventories $ 843.0 $ 784.9 $ 685.7 Inventory reserve at beginning of year $ (80.6 ) $ (76.7 ) $ (68.2 ) Reversal of reserve 1.4 4.8 2.9 Addition to reserve (13.9 ) (7.3 ) (16.2 ) Write-off against reserve 5.3 5.2 3.0 Translation difference 2.7 (6.6 ) 1.8 Inventory reserve at end of year $ (85.1 ) $ (80.6 ) $ (76.7 ) Total inventories, net of reserve $ 757.9 $ 704.3 $ 609.0 |
Investments and Other Non-curre
Investments and Other Non-current Assets | 12 Months Ended |
Dec. 31, 2018 | |
Investments All Other Investments [Abstract] | |
Investments and Other Non-current Assets | 9. Investments and Other Non-Current Assets DECEMBER 31 2018 2017 Equity method investments $ 12.5 $ 12.9 Deferred tax assets 235.6 248.9 Income tax receivables 33.6 30.4 Other non-current assets 41.8 48.8 Investments and other non-current assets $ 323.5 $ 341.0 As of December 31, 2018, the Company had one equity method investment. The Company has ownership of 49% in Autoliv-Hirotako Safety Sdn, Bhd (parent and subsidiaries) in Malaysia which it currently does not control, but in which it exercises significant influence over operations and financial position. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 10. Property, Plant and Equipment DECEMBER 31 2018 2017 Estimated life Land and land improvements $ 114.7 $ 113.4 n/a to 15 Machinery and equipment 3,496.8 3,276.1 3-8 Buildings 822.9 816.2 20-40 Construction in progress 374.3 370.6 n/a Property, plant and equipment $ 4,808.7 $ 4,576.3 Less accumulated depreciation (3,118.6 ) (2,967.4 ) Net of depreciation $ 1,690.1 $ 1,608.9 DEPRECIATION INCLUDED IN 2018 2017 2016 Cost of sales $ 300.9 $ 268.9 $ 248.3 Selling, general and administrative expenses 13.9 12.5 8.6 Research, development and engineering expenses, net 15.9 14.5 12.7 Total $ 330.7 $ 295.9 $ 269.6 No significant fixed asset impairments related to the Company’s continuing operations were recognized during 2018, 2017 or 2016. The net book value of machinery and equipment and buildings and land under capital lease contracts recorded at December 31, 2018 and December 31, 2017 were immaterial. The amortization expense related to capital leases is included with depreciation expenses disclosed in the table above. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 11. Goodwill and Intangible Assets GOODWILL 2018 2017 Carrying amount at beginning of year $ 1,397.0 $ 1,380.6 Translation differences (7.1 ) 16.4 Carrying amount at end of year $ 1,389.9 $ 1,397.0 Approximately $1.2 billion of the Company’s goodwill is associated with the 1997 merger of Autoliv AB and the Automotive Safety Products Division of Morton International, Inc. No goodwill impairment charges were recognized in continuing operations during 2018, 2017 or 2016. AMORTIZABLE INTANGIBLES 2018 2017 Gross carrying amount $ 391.6 $ 355.0 Accumulated amortization (358.9 ) (312.4 ) Carrying value $ 32.7 $ 42.6 At December 31, 2018, intangible assets subject to amortization mainly relate to acquired technology. No significant impairments of intangible assets were recognized during 2018, 2017 or 2016. Amortization expense related to intangible assets was $11.3 million, $11.2 million and $10.5 million in 2018, 2017 and 2016, respectively. Estimated future amortization expense is (in millions): 2019: $11.6; 2020: $10.2; 2021: $9.1; 2022: $1.2 and 2023: $0.6. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 12. Restructuring Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under its existing credit facilities. The Company does not expect that the execution of these programs will have an adverse impact on its liquidity position. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Net Income. The majority of the reserve balance as of December 31, 2018 pertains to restructuring activities initiated in Western Europe in the past few years. The Company anticipates that its restructuring initiatives in Western Europe for a number of plants, none of which are individually or in the aggregate material as of December 31, 2018, will continue through dates ranging from 2019 through 2021. The total amount of costs expected to be incurred in connection with these restructuring activities ranges from approximately $11 million to $31 million for each individual activity. In the aggregate, the cost for these Western European restructuring initiatives is approximately $109 million and the remaining restructuring liability as of December 31, 2018 is approximately $27 million out of the $33 million total reserve balance. 2018 In 2018, the employee-related restructuring provisions, made on a case-by-case basis, related mainly to headcount reductions in high-cost countries in Western Europe. Cash payments related mainly to high-cost countries in Western Europe. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2017 to December 31, 2018 related to the continuing operations. December 31 Provision/ Provision/ Cash Translation December 31 2017 Charge Reversal payments difference 2018 Restructuring employee-related $ 39.4 $ 9.0 $ (0.1 ) $ (13.6 ) $ (1.5 ) $ 33.2 Other 0.2 0.2 — — (0.2 ) 0.2 Total reserve $ 39.6 $ 9.2 $ (0.1 ) $ (13.6 ) $ (1.7 ) $ 33.4 2017 In 2017, the employee-related restructuring provisions, made on a case-by-case basis, and cash payments related mainly to headcount reductions in high-cost countries in Western Europe and Japan. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2016 to December 31, 2017 related to the continuing operations. December 31 Provision/ Provision/ Cash Translation December 31 2016 Charge Reversal payments difference 2017 Restructuring employee-related $ 35.7 $ 29.3 $ (6.9 ) $ (23.3 ) $ 4.6 $ 39.4 Other 0.1 0.2 — — (0.1 ) 0.2 Total reserve $ 35.8 $ 29.5 $ (6.9 ) $ (23.3 ) $ 4.5 $ 39.6 2016 In 2015, the employee-related restructuring provisions, made on a case-by-case basis, and cash payments related mainly to headcount reductions in high-cost countries in Western Europe and Korea. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2015 to December 31, 2016 related to the continuing operations. December 31 Provision/ Provision/ Cash Translation December 31 2015 Charge Reversal payments difference 2016 Restructuring employee-related $ 86.9 $ 23.6 $ (2.6 ) $ (71.3 ) $ (0.9 ) $ 35.7 Other 0.2 0.1 — — (0.2 ) 0.1 Total reserve $ 87.1 $ 23.7 $ (2.6 ) $ (71.3 ) $ (1.1 ) $ 35.8 |
Product-Related Liabilities
Product-Related Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Product-Related Liabilities | 13. Product Related Liabilities Autoliv is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. For further information, see Note 18. The Company records liabilities for product related risks when probable claims are identified and when it is possible to reasonably estimate costs. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products, and the mix and volume of the products sold. The provisions are recorded on an accrual basis. Pursuant to the Spin-off Agreements, Autoliv is also required to indemnify Veoneer for recalls related to certain qualified Electronics products. At December 31, 2018, the indemnification liabilities are approximately $12 million within accrued expenses on the Consolidated Balance Sheet. Insurance receivables are included within Other current assets in the Condensed Consolidated Balance Sheet. The decrease in reserves in 2018 was mainly due to a lower recalls and higher cash payments. The decrease in reserves in 2017 was mainly due to a decrease in recall related issues and payments. A majority of the Company’s recall related issues as of December 31, 2018 are covered by insurance. Insurance receivables are included within other current assets in the Consolidated Balance Sheet. The decrease in reserves in 2017 was mainly due to a decrease in recall related issues and payments, while the increase in reserves in 2016 was mainly due to recall related issues. Cash payments in 2018 were mainly recall related. Cash payments in 2017 were mainly recall related, while 2016 were mainly warranty related. The table below summarizes the change in the balance sheet position of the product related liabilities. 2018 2017 2016 Reserve at beginning of the year $ 95.6 $ 90.6 $ 39.0 Change in reserve 20.6 32.2 68.1 Cash payments (54.3 ) (29.4 ) (15.6 ) Translation difference 0.3 2.2 (0.9 ) Reserve at end of the year $ 62.2 $ 95.6 $ 90.6 |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | 14. Debt and Credit Agreements SHORT-TERM DEBT As of December 31, 2018, total short-term debt was $621 million. Short-term debt consisted of $208 million U.S. Private Placement loan maturing in April 2019, $60 million U.S. Private Placement loan maturing in November 2019, and $343 million commercial paper loans with maturities in Q1 and Q2 2019. The Company’s subsidiaries have credit agreements, principally in the form of overdraft facilities with several local banks. Total available short-term facilities as of December 31, 2018, excluding commercial paper facilities as described below, amounted to $381 million, of which approximately $10 million was utilized. The weighted average interest rate on total short-term debt outstanding at December 31, 2018 and 2017, excluding the short-term portion of long-term debt, was 1.4% and 2.0%, respectively. LONG-TERM DEBT As of December 31, 2018, total long-term debt was $1,609 million. In June 2018, the Company issued EUR 500 million of 5-year notes in the Eurobond market. The notes carry a coupon of 0.75%. In 2014, the Company issued CREDIT FACILITIES In July 2016, the Company signed a $1,100 million senior unsecured revolving credit facility with 14 banks. The term of the facility was 5 years with two one-year extension options. The Company has utilized these extension options and extended the maturity to July 2023. The Company pays a commitment fee on the undrawn amount. The commitment fee is 35% of the applicable margin. The applicable margin is related to the Company’s credit rating. Given the Company’s current credit rating of A- from S&P Global Ratings the applicable margin is 0.225%. As of December 31, 2018, and December 31, 2017, the facility was unutilized. The Company has two commercial paper programs: one SEK 7 billion (approx. $780 million) Swedish program and one $1.0 billion U.S. program. At December 31, 2018 a total of $343 million had been issued under these programs. Both programs were unutilized at December 31, 2017. The Company is not subject to any financial covenants, i.e. performance related restrictions, in any of its significant long-term borrowings or commitments. CREDIT RISK In the Company’s financial operations, credit risk arises in connection with cash deposits with banks and when entering into forward exchange agreements, swap contracts or other financial instruments. In order to reduce this risk, deposits and financial instruments are only entered with a limited number of banks up to a calculated risk amount of $150 million per bank for banks rated A- or above and up to $50 million for banks rated BBB+. The policy of the Company is to work with banks that have a strong credit rating and that participate in the Company’s financing. In addition to this, deposits of up to an aggregate amount of $2 billion can be placed in U.S. and Swedish government paper and in certain AAA rated money market funds. As of December 31, 2018, the Company had placed $1 million in money market funds. The table below shows debt maturity as cash flow. For a description of hedging instruments used as part of debt management, see the Financial Instruments section of Note 2 and Note 5. DEBT PROFILE Total PRINCIPAL AMOUNT BY EXPECTED MATURITY 2019 2020 2021 2022 2023 Thereafter long- term Total Eurobond $ — $ — $ — $ — $ 572.7 $ — $ 572.7 $ 572.7 U.S. private placement notes $ 268.0 $ — $ 275.0 $ — $ — $ 767.0 $ 1,042.0 $ 1,310.0 Commercial papers $ 342.6 $ — $ — $ — $ — $ — — $ 342.6 Other short-term debt $ 10.1 $ — $ — $ — $ — $ — $ — $ 10.1 Total principal amount $ 620.7 $ — $ 275.0 $ — $ 572.7 $ 767.0 $ 1,614.7 $ 2,235.4 1) 1) The difference between reported total debt and total principal amount is mainly related to capitalized debt issuance costs. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity The number of shares outstanding as of December 31, 2018 was 87,144,520. DIVIDENDS 2018 2017 2016 Cash dividend paid per share $ 2.46 $ 2.38 $ 2.30 Cash dividend declared per share $ 2.48 $ 2.40 $ 2.32 OTHER COMPREHENSIVE INCOME (LOSS)/ ENDING BALANCE 1) 2018 2017 2016 Cumulative translation adjustments $ (381.2 ) $ (230.5 ) $ (493.5 ) Net (loss) gain of cash flow hedge derivatives — (0.8 ) 8.1 Net pension liability (55.0 ) (56.2 ) (80.1 ) Distribution to Veoneer 13.0 — — Total (ending balance) $ (423.2 ) $ (287.5 ) $ (565.5 ) Deferred taxes on the pension liability $ 15.4 $ 16.5 $ 35.3 1) The components of Other Comprehensive Income (Loss) are net of any related income tax effects. SHARE REPURCHASE PROGRAM The Company’s Board of Directors approved a share repurchase program in 2000 authorizing the repurchase of 10 million shares and subsequently expanded the authorization four times between 2000 and 2014 to 47.5 million shares. There were no share repurchases made during 2018. The Company made repurchases during the second quarter of 2017. There is no expiration date for the share repurchase program. The Company is authorized to repurchase an additional 2,986,288 shares under the program at December 31, 2018. SHARES 2018 2017 2016 Shares repurchased (shares in millions) — 1.4 — Cash paid for shares $ — $ 157.0 $ — In total, Autoliv has repurchased 44.5 million shares between May 2000 and December 2018 for cash of $2,498 million, including commissions. Of the total amount of repurchased shares, 23.6 million shares were utilized for the equity unit offering during 2009-2012. In addition, 5.3 million shares have been utilized by the Stock Incentive Plan whereof 0.2 million, 0.2 million and 0.1 million were utilized during 2018, 2017 and 2016, respectively. At December 31, 2018, 15.7 million of the repurchased shares remain in treasury stock. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 16. Supplemental Cash Flow Information Payments for interest and income taxes were as follows: 2018 2017 2016 Interest $ 66 $ 64 $ 64 Income taxes $ 214 $ 204 $ 247 |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plan | 17. Stock Incentive Plan Eligible employees and non-employee directors of Autoliv participate in the Autoliv, Inc.1997 Stock Incentive Plan (the Plan) and received Autoliv stock-based awards which include stock options (SOs), restricted stock units (RSUs) and performance shares (PSs). In connection with the Veoneer spin-off, each outstanding Autoliv stock-based award as of June 29, 2018 (the Distribution Date) was converted to a stock award that has underlying shares of both Autoliv and Veoneer common shares. The conversion that occurred on the Distribution Date was based on the following: • SOs - A number of SOs comprising 50% of the value of the outstanding SOs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of SOs comprising the remaining 50% percent of the pre spin-off value were replaced with options to acquire shares of Veoneer common stock. • RSUs - A number of RSUs comprising 50% of the value of the outstanding RSUs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of RSUs comprising the remaining 50% of the pre spin-off value were replaced with RSUs with underlying Veoneer common stock. • PSs - Outstanding PSs pre spin-off were converted to time-based RSUs and were divided between Autoliv and Veoneer common stock in the same manner as other outstanding RSUs (as described above) on the Distribution Date. The number of outstanding PSs pre spin-off to be converted was determined based on pro-ration of the performance period such as: 1) The level of actual achievement of performance goals for each outstanding PS for the period between the first day of the performance period and December 31, 2017 (the “Performance Measurement Date”), referred to as “Level of Performance-to-Date”; and 2) The greater of the Level of Performance-to-Date and the target performance level for the period between the Performance Measurement Date and the last day of the performance period. In each case above, the conversion was intended to generally preserve the intrinsic value of the original award determined as of the Distribution Date. The number of converted RSUs and SOs for Autoliv and Veoneer was based on the average of Autoliv closing stock prices for the last 5 trading days prior to the spin-off and the average of closing stock prices of Autoliv and Veoneer, respectively, for the first 5 trading days after the spin-off. Accordingly, 50% of the outstanding awards as of the Distribution Date, and the related exercise price, were converted to Adjusted Autoliv Awards using a conversion factor of 1.41. As a result of the spin-off and the related conversion, it was determined that the stock based awards were modified in accordance with ASC 718, Compensation – Stock Compensation. The fair value of the RSUs and SOs immediately before and after the modification was assessed in order to determine if the modification resulted in any incremental compensation cost related to the awards, including consideration of the impact of conversion using the 5 trading day average. Based on the valuation performed, it was determined that the conversion did not result in any incremental compensation cost for any of the outstanding awards. The post spin-off stock-based compensation expense will be based on the original grant date fair value related to only Autoliv employees. With certain limited exceptions, including the freezing of the Performance Measurement Date to December 31, 2017 as noted above, the adjusted SOs and RSUs outstanding after the spin-off are subject to the same terms and conditions (including with respect to vesting and expiration) that were applicable to such Autoliv stock-based awards immediately prior to the conversion and as described below. The fair value of the RSUs and PSs is calculated as the grant date fair value of the shares expected to be issued. The RSUs granted in 2018 and 2017 entitle the grantee to receive dividend equivalents in the form of additional RSUs subject to the same vesting conditions as the underlying RSUs. The RSUs granted prior to 2017 do not have dividend equivalent rights. For the grants made during 2018 and 2017, the fair value of a PS and a RSU was calculated by using the closing stock price on the grant date. For the grants made during 2016 and earlier, the fair value of a RSU and a PS was estimated using the Black Scholes valuation model to account for the difference in the value of the awards resulting from such awards not having dividend equivalent rights. The grant date fair value for the RSUs on February 13, 2018 was $16.6 million (pre-spin grant date fair value). The amount of this cost attributable to Autoliv employees after the spin-off will be amortized straight line over the vesting period. Pursuant to the Company’s director compensation policy, the Company’s non-employee directors receive RSUs as payment of 50% of their annual base retainer, which RSUs vest in one installment on the earlier of the date of the next AGM or the first anniversary of the grant date, in each case subject to the grantee’s continued service as a non-employee director on the vesting date with certain exceptions. The RSUs granted to the Company’s non-employee directors entitle the grantee to receive dividend equivalents in the form of additional RSUs subject to the same vesting conditions as the underlying RSUs. The grant date fair value for the RSUs granted in 2018 to the Company’s non-employee directors was $1.4 million. The source of the shares issued upon vesting of awards is generally from treasury shares. The Stock Incentive Plan provides for the issuance of up to 9,585,055 common shares for awards. At December 31, 2018, 6,394,392 of these shares have been issued for awards which includes 37,103 shares of common stock issued to non-executive directors in satisfaction of all or a portion of his or her annual base retainer for service on the Board. Included within the RSUs granted in 2018 are 7,869 RSUs issued to non employee directors in satisfaction of all or a portion of his or her annual base retainer for service on the Board. During 2015 and earlier, stock awards were granted in the form of SOs and RSUs. All SOs were granted for 10-year terms, had an exercise price equal to the fair value of the share at the date of grant, and became exercisable after one year of continued employment following the grant date. The average grant date fair values of SOs were calculated using the Black-Scholes valuation model. The Company used historical exercise data for determining the expected life assumption. Expected volatility was based on historical and implied volatility. The Company recorded $9.1 million, $6.1 million and $8.4 million stock-based compensation expense in continuing operations related to RSUs and PSs for 2018, 2017 and 2016, respectively. The total compensation cost related to non-vested awards not yet recognized is $10.3 million for RSUs and the weighted average period over which this cost is expected to be recognized is approximately 1.7 years. There are no remaining unrecognized compensation costs associated with stock options. Information on the number of RSUs, PSs and SOs related to the Stock Incentive Plan during the period of 2016 to 2018 is as follows. RSUs 2018 2017 2016 Weighted average fair value at grant date 1) $ 131.51 $ 105.64 $ 100.77 Outstanding at beginning of year 188,410 188,494 204,552 Granted 131,246 84,771 71,870 Shares issued (84,425 ) (70,795 ) (66,651 ) Cancelled/Forfeited/Expired (6,485 ) (14,060 ) (21,277 ) Spin conversion 2) 33,328 — — Outstanding at end of year 3) 262,074 188,410 188,494 1) Weighted average fair value at grant date pre-spin. 2) Reflects the impact of the cancellation of PS awards outstanding as of the Distribution Date, and the conversion to RSUs in accordance with the conversion factor described above. 3) Outstanding at the end of 2018 reflects the RSUs held by employees of Autoliv and Veoneer, in accordance with the conversion factor described above. Outstanding at the end of 2017 and 2016, respectively reflects RSUs held by employees of Autoliv. The corresponding weighted average grant date fair value after applying the conversion factor is $100.74 as of December 31, 2018. The aggregate intrinsic value for RSUs outstanding at December 31, 2018 was $18.4 million. PSs 2018 2017 2016 Weighted average fair value at grant date 1) $ 105.87 $ 105.87 $ 98.57 Outstanding at beginning of year 139,891 138,548 — Change in performance conditions — (69,274 ) — Granted 2) 588 75,379 143,740 Shares issued — — — Cancelled/Forfeited/Expired (3,076 ) (4,762 ) (5,192 ) Spin conversion 3) (137,403 ) — — Outstanding at end of year 4) — 139,891 138,548 1) Weighted average fair value at grant date pre-spin. 2) 2018 grants reflect awards issued pre-spin as a result of dividend equivalent rights. 3) Reflects the replacement of awards due to the spin-off. Outstanding PS awards were converted to RSU awards in accordance with the conversion factor described above. 4) O utstanding at the end of 2017 and 2016, respectively reflects PSs held by employees of Autoliv. The PSs granted include assumptions regarding the ultimate number of shares that will be issued based on the probability of achievement of the performance conditions. Changes in those assumptions result in changes in the estimated shares to be issued which is reflected in the “Change in performance conditions” line above. SOs Number of options Weighted average exercise price Outstanding at Dec 31, 2015 473,051 $ 87.88 Exercised (51,084 ) 88.10 Cancelled/Forfeited/Expired (10,858 ) 102.31 Outstanding at Dec 31, 2016 411,109 $ 87.47 Exercised (100,184 ) 79.58 Cancelled/Forfeited/Expired (10,976 ) 112.20 Outstanding at Dec 31, 2017 299,949 $ 89.20 Exercised (92,485 ) 86.59 Cancelled/Forfeited/Expired — — Spin conversion 1) (65,390 ) 88.75 Outstanding at Dec 31, 2018 2) 142,074 $ 63.43 OPTIONS EXERCISABLE At December 31, 2016 254,842 $ 71.48 At December 31, 2017 299,949 $ 89.20 At December 31, 2018 142,074 $ 63.43 1) Reflects the cancellation of SOs outstanding as of the Distribution Date, and the conversion to new awards in accordance with the conversion factor described above. The weighted average exercise price reflects the exercise price of the shares cancelled due to the spin-off. 2) Reflects outstanding SOs held by employees of Autoliv and Veoneer at the end of the year and the weighted average exercise price, in accordance with the conversion factor described above. The following summarizes information about SOs outstanding and exercisable at December 31, 2018: RANGE OF EXERCISE PRICES Number outstanding & exercisable Remaining contract life (in years) Weighted average exercise price $11.57 5,885 0.14 $ 11.57 $31.71 7,047 1.13 31.71 $47.52– $49.07 27,553 3.64 48.30 $51.74 10,120 2.15 51.74 $67.29 37,768 5.14 67.29 $80.40 53,701 6.13 80.40 142,074 4.64 $ 63.43 The total aggregate intrinsic value, which is the difference between the exercise price and $70.23 (closing price per share at December 31, 2018), for all “in the money” SOs, both outstanding and exercisable as of December 31, 2018, was $10.0 million. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 18. 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$81 million (approximately $21 million), inclusive of fines, penalties and interest. The Company believed that a loss was probable with respect to at least a portion of the assessed amount and accrued an amount in 2015 that was not material to the Company’s results of operations. During the first quarter of 2018, the Brazilian authorities offered an amnesty period which would allow taxpayers to reduce the penalties associated with eligible tax matters by up to 85%. During the second quarter of 2018, the Company applied to participate in such tax amnesty program which was accepted by the Brazilian authorities. The Company paid an immaterial amount during the period ended June 30, 2018 to resolve this matter. ANTITRUST MATTERS Authorities in several jurisdictions are currently or have been 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, the products that the Company sells. In addition to concluded and 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. European Commission (“EC”) 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. On November 22, 2017, the EC concluded a discrete portion of its investigation and imposed a fine on the Company of EUR 8.1 million (approximately $9.7 million) with respect to this portion of the EC’s overall investigation while it continues the more significant portion of its investigation. The Company paid this amount during the first quarter of 2018, and had previously accrued EUR 8.3 million (approximately $9.9 million) in 2017 with respect to this discrete portion of the investigation. Management does not believe the outcome of this discrete portion of the EC’s investigation as noted above provides an indication of the total probable loss associated with the EC investigation as a whole. The Company believes that the EC will seek to impose a fine in connection with the remaining portion of the EC investigation. According to management’s best estimation and based on advice of our legal counsel, the Company accrued EUR 184 million (approximately $210 million) during the fourth quarter of 2018, which was recorded in Accrued expenses and Other income (expense), net. The Company believes that a fine could be issued during the first half of 2019, although this may be delayed. The fine would be payable within 90 days after the investigation is ultimately resolved and would be denominated in euros. South Africa Investigation: In August 2014, the Competition Commission of South Africa (the “CCSA”) contacted the Company regarding an investigation into the Company’s sales of occupant safety systems in South Africa. In September 2017, the Company entered into a settlement agreement with the CCSA in which the Company agreed to pay an administrative penalty of R150 million (approximately $11 million), which the Competition Tribunal in South Africa confirmed on November 22, 2017. The Company had previously accrued a total of approximately $6 million in 2016 for this matter, and accrued an additional $5 million in 2017 with respect to the proposed settlement, and final payment of the settlement amount was made in February 2018. Brazil 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. In November 2016, the Company and the CADE entered into a settlement agreement with respect to this matter for an amount that is not material to the Company’s results of operations. Settlement amounts were accrued for this matter during the periods ended December 31, 2015 and December 31, 2016, and final payment of the accrued amounts was made in 2017. Civil Litigation The Company is 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 the direct purchasers, auto dealers, end-payors plaintiff classes, which were granted final approval by the MDL court in 2015 and 2016. The total settlement amount of $65 million (later reduced to approximately $60.5 million as a result of opt-outs from the direct purchaser settlement) was expensed in 2014. In April 2016, the Company entered into a settlement agreement with the truck and equipment dealers’ class, which was granted final approval by the MDL court in 2016, for an amount that is immaterial to the Company’s results of operations. 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. Two direct purchasers opted out of the Company’s direct purchaser class settlement and several individuals and one insurer (and its affiliated entities) opted-out of the end-payor class settlements, including the Company’s settlement. 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. The remaining four antitrust class action lawsuits were filed 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) asserting claims on behalf of putative classes of both direct and indirect purchasers of occupant safety systems. In February 2017, the Company entered into, and the courts subsequently approved, a settlement agreement with plaintiffs in three of the four class actions to settle on a nationwide class basis for an amount that is not material to the Company’s results of operations. Settlement amounts were accrued for this matter during the period ended December 31, 2016 and final payment of the accrued amounts was made in 2017. This national settlement includes the claims of the putative members of the fourth class action. PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY Autoliv is exposed to various claims for damages and compensation if its 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 or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other 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. In addition, a number of the agreements entered into by the Company, including the Spin-off Agreements, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses or with respect to other obligations, 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. Toyota Recall: 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 eight 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, 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 13 Product Related Liabilities above summarizes the change in the balance sheet position of the product related liabilities for the fiscal year ended December 31, 2018. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Lease Commitments | 19. Lease Commitments OPERATING LEASES The Company leases certain offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment under operating lease contracts. The operating leases, some of which are non-cancellable and include renewals, expire at various dates through 2045. The Company pays most maintenance, insurance and tax expenses relating to leased assets. Rental expense for operating leases was $47 million, $46 million and $41 million for 2018, 2017 and 2016, respectively. At December 31, 2018, future minimum lease payments for non-cancellable operating leases totaled $186 million and are payable as follows (in millions): 2019: $42; 2020: $36; 2021: $29; 2022: $26; 2023: $20; 2024 and thereafter: $33. CAPITAL LEASES At December 31, 2018, future minimum lease payments for non-cancellable capital leases were not material. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 20. Retirement Plans DEFINED CONTRIBUTION PLANS Many of the Company’s employees are covered by government sponsored pension and welfare programs. Under the terms of these programs, the Company makes periodic payments to various government agencies. In addition, in some countries the Company sponsors or participates in certain non-governmental defined contribution plans. Contributions to defined contribution plans for the years ended December 31, 2018, 2017 and 2016 were $19.2 million, $21.7 million and $21.3 million, respectively. MULTIEMPLOYER PLANS The Company participates in a multiemployer plan in Sweden, which is deemed insignificant. The Swedish ITP-2 pension plan is funded through Alecta. For employees born before 1979, the plan provides a final pay pension benefit based on all service with participating employers. The Company must pay for wage increases in excess of inflation on service earned with previous employers. The plan also provides disability and family benefits. The plan is more than 100% funded. The Company contributions to the multiemployer plan in Sweden for the years ended December 31, 2018, 2017 and 2016 were $6.1 million, $9.7 million and $4.4 million, respectively. DEFINED BENEFIT PLANS The Company has a number of defined benefit pension plans, both contributory and non-contributory, in the U.S., Germany, France, Japan, Mexico, Sweden, South Korea, India, Turkey, Thailand, Philippines and the United Kingdom. There are funded as well as unfunded plan arrangements which provide retirement benefits to both U.S. and non-U.S. participants. The main plan is the U.S. plan for which the benefits are based on an average of the employee’s earnings in the years preceding retirement and on credited service. In a prior year, the Company closed participation in the Autoliv ASP, Inc. Pension Plan to exclude those employees hired after December 31, 2003. Within the U.S. there is also a non-qualified restoration plan that provides benefits to employees whose benefits in the primary U.S. plan are restricted by limitations on the compensation that can be considered in calculating their benefits. During December 2017 the Company decided to amend the U.S. defined benefit pension plan, communicating a benefits freeze that will begin on December 31, 2021. There were no curtailment expenses due to U.S. plan freeze. The curtailment caused a decrease in the projected benefit obligation (PBO) of $62 million as of December 31, 2017, with the offset recorded to OCI. For the Company’s non-U.S. defined benefit plans the most significant individual plan resides in the U.K. The Company has closed participation in the U.K. defined benefit plan to exclude all employees hired after April 30, 2003 with few members accruing benefits. CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS RELATED TO CONTINUING OPERATIONS FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Benefit obligation at beginning of year $ 368.6 $ 361.2 $ 220.9 $ 190.6 Service cost 8.7 9.0 10.8 10.4 Interest cost 12.8 14.8 5.7 5.5 Actuarial (gain) loss due to: Change in discount rate (44.6 ) 53.4 (12.1 ) 5.9 Experience 0.8 (2.0 ) 4.7 (4.3 ) Other assumption changes 3.5 4.2 4.8 1.4 Plan amendments — — (0.1 ) (0.5 ) Benefits paid (17.7 ) (9.8 ) (7.9 ) (7.9 ) Plan settlements — — (0.8 ) (0.1 ) Curtailments — (62.2 ) — — Special termination benefits — — 0.5 0.3 Translation difference — — (9.6 ) 19.6 Benefit obligation at end of year $ 332.1 $ 368.6 $ 216.9 $ 220.9 Fair value of plan assets at beginning of year $ 297.9 $ 256.5 $ 84.8 $ 76.5 Actual return on plan assets (13.9 ) 44.5 (1.9 ) 2.3 Company contributions 6.7 6.7 9.0 6.3 Benefits paid (17.7 ) (9.8 ) (7.9 ) (7.9 ) Plan settlements — — (0.8 ) (0.1 ) Translation difference — — (5.4 ) 7.7 Fair value of plan assets at end of year $ 273.0 $ 297.9 $ 77.8 $ 84.8 Funded status recognized in the balance sheet $ (59.1 ) $ (70.7 ) $ (139.1 ) $ (136.1 ) The U.S. plan provides that benefits may be paid in the form of a lump sum if so elected by the participant. In order to more accurately reflect a market-derived pension obligation, Autoliv adjusts the assumed lump sum interest rate to reflect market conditions as of each December 31. This methodology is consistent with the approach required under the Pension Protection Act of 2006, which provides the rules for determining minimum funding requirements in the U.S. COMPONENTS OF NET PERIODIC BENEFIT COST FROM CONTINUING OPERATIONS ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS U.S. 2018 2017 2016 Service cost $ 8.7 $ 9.0 $ 8.3 Interest cost 12.8 14.8 14.6 Expected return on plan assets (20.4 ) (17.6 ) (16.6 ) Amortization of prior service credit 0.1 0.0 (0.9 ) Amortization of actuarial loss 2.2 6.0 4.8 Curtailment loss — 0.2 — Net periodic benefit cost $ 3.4 $ 12.4 $ 10.2 Non-U.S. 2018 2017 2016 Service cost $ 10.8 $ 10.4 $ 10.8 Interest cost 5.7 5.5 5.8 Expected return on plan assets (2.0 ) (1.9 ) (2.2 ) Amortization of prior service costs 0.3 0.2 0.2 Amortization of actuarial loss 1.4 1.9 1.4 Settlement loss (gain) 0.2 0.1 (2.4 ) Special termination benefits 0.5 0.3 0.1 Net periodic benefit cost $ 16.9 $ 16.5 $ 13.7 The service cost and amortization of prior service cost components from continuing operations are reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components, interest cost, expected returns on plan assets and amortization of actuarial loss, are reported as Other non-operating items, net in the Consolidated Statements of Income. The estimated prior service credit for the U.S. defined benefit pension plans that will be amortized from other comprehensive income into net benefit cost over the next fiscal year is immaterial. Amortization of net actuarial losses is expected to be $1.6 million in 2019. Net periodic benefit cost associated with these U.S. plans was $3.4 million in 2018 and is expected to be approximately $9.6 million in 2019. The estimated prior service cost and net actuarial loss for the non-U.S. defined benefit pension plans that will be amortized from other comprehensive income into net benefit cost over the next fiscal year are $0.3 million and $0.9 million, respectively. Net periodic benefit cost associated with these non-U.S. plans was $16.9 million in 2018 and is expected to be around $16.9 million in 2019. The amortization of the net actuarial loss is made over the estimated remaining service lives of the plan participants, 10 years for U.S. and 7-33 years for non-U.S. participants, varying between the different countries depending on the age of the work force. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Net actuarial loss $ 48.0 $ 56.2 $ 30.8 $ 32.6 Prior service cost 0.1 0.1 3.1 2.9 Total accumulated other comprehensive income recognized in the balance sheet $ 48.1 $ 56.3 $ 33.9 $ 35.5 CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX FROM CONTINUING OPERATIONS FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 56.3 $ 95.9 $ 35.5 $ 32.2 Net actuarial (gain) loss (6.0 ) (33.4 ) 1.6 2.4 Amortization of prior service credit (cost) 0.0 (0.2 ) (0.3 ) (0.2 ) Amortization of actuarial loss (2.2 ) (6.0 ) (1.5 ) (2.0 ) Translation difference — — (1.4 ) 3.1 Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 48.1 $ 56.3 $ 33.9 $ 35.5 The accumulated benefit obligation for the U.S. non-contributory defined benefit pension plans was $314.8 million and $336.9 million at December 31, 2018 and 2017, respectively. The accumulated benefit obligation for the non-U.S. defined benefit pension plans was $167.8 million and $173.5 million at December 31, 2018 and 2017, respectively. Pension plans for which the accumulated benefit obligation (ABO) is notably in excess of the plan assets reside in the following countries: U.S., France, Germany, Japan, South Korea and Sweden. PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Projected Benefit Obligation (PBO) $ 332.1 $ 368.6 $ 143.3 $ 143.6 Accumulated Benefit Obligation (ABO) 314.8 336.9 110.8 112.5 Fair value of plan assets 272.9 297.9 3.9 4.1 The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected benefit obligation and annual net periodic benefit cost. ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31 U.S. Non-U.S. 1) % WEIGHTED AVERAGE 2018 2017 2018 2017 Discount rate 4.35 3.55 0.50-3.25 0.25-3.25 Rate of increases in compensation level 2.65 2.65 2.00-5.00 2.00-5.00 ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31 U.S. % WEIGHTED AVERAGE 2018 2017 2016 Discount rate 3.55 4.15 4.50 Rate of increases in compensation level 2.65 2.65 2.65 Expected long-term rate of return on assets 7.08 7.08 7.08 Non-U.S. 1) % WEIGHTED AVERAGE 2018 2017 2016 Discount rate 0.25-3.25 0.50-3.25 0.50-3.60 Rate of increases in compensation level 2.00-5.00 2.00-5.00 2.25-5.00 Expected long-term rate of return on assets 2.25-2.50 1.50-2.50 1.50-3.60 1) The discount rate for the U.S. plans has been set based on the rates of return on high-quality fixed-income investments currently available at the measurement date and expected to be available during the period the benefits will be paid. The expected timing of cash flows from the plan has also been considered in selecting the discount rate. In particular, the yields on bonds rated AA or better on the measurement date have been used to set the discount rate. The discount rate for the U.K. plan has been set based on the weighted average yields on long-term high-grade corporate bonds and is determined by reference to financial markets on the measurement date. The expected rate of increase in compensation levels and long-term rate of return on plan assets are determined based on a number of factors and must take into account long-term expectations and reflect the financial environment in the respective local market. The expected return on assets for the U.S. and U.K. plans are based on the fair value of the assets as of December 31. The level of equity exposure is currently targeted at approximately 40% for the primary U.S. plan. The investment objective is to provide an attractive risk-adjusted return that will ensure the payment of benefits while protecting against the risk of substantial investment losses. Correlations among the asset classes are used to identify an asset mix that Autoliv believes will provide the most attractive returns. Long-term return forecasts for each asset class using historical data and other qualitative considerations to adjust for projected economic forecasts are used to set the expected rate of return for the entire portfolio. The Company has assumed a long-term rate of return on the U.S. plan assets of 7.08% for calculating the 2018 expense and 5.05% for calculating the 2019 expense. The Company has assumed a long-term rate of return on the non-U.S. plan assets in a range of 2.25-2.50% for 2018. The closed U.K. plan which has a targeted and actual allocation of almost 100% debt instruments accounts for approximately 79% of the total non-U.S. plan assets. Autoliv made contributions to the U.S. plan during 2018 and 2017 amounting to $6.7 million and $6.7 million, respectively. Contributions to the U.K. plan during 2018 and 2017 amounted to $1.3 million and $1.2 million, respectively. The Company expects to contribute $7 million to its U.S. pension plan in 2019 and is currently projecting a yearly funding at approximately the same level in the years thereafter. For the UK plan, which is the most significant non-U.S. pension plan, the Company expects to contribute $1.2 million in 2019 and in the years thereafter. FAIR VALUE OF TOTAL PLAN ASSETS RELATED TO CONTINUING OPERATIONS FOR YEARS ENDED DECEMBER 31 U.S. U.S. Non-U.S. ASSETS CATEGORY IN % WEIGHTED AVERAGE Target allocation 2018 2017 2018 2017 Equity securities 40 38 56 0 0 Debt instruments 60 62 43 79 79 Other assets — 0 1 21 21 Total 100 100 100 100 100 The following table summarizes the fair value of the Company’s U.S. and non-U.S. defined benefit pension plan assets: Fair value measurement at December 31, 2018 Fair value measurement at December 31, 2017 Assets Non-U.S. Bonds Corporate 61.4 66.9 Insurance Contracts 12.6 13.8 Other Investments 4.5 7.4 Assets at fair value Level 2 78.5 88.1 Investments measured at net asset value (NAV): Common collective trusts 272.3 294.6 Total $ 350.8 $ 382.7 The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Plan assets not measured using the NAV are classified as Level 2 in the table above. Plan assets measured using the NAV mainly relate to the U.S. defined benefit pension plans and are separately disclosed as Common collective trusts below the level 2 assets in the table above. The estimated future benefit payments for the pension benefits reflect expected future service, as appropriate. The amount of benefit payments in a given year may vary from the projected amount, especially for the U.S. plan since historically this plan pays the majority of benefits as a lump sum, where the lump sum amounts vary with market interest rates. PENSION BENEFITS EXPECTED PAYMENTS U.S. Non-U.S. 2019 $ 13 $ 8 2020 $ 14 $ 8 2021 $ 17 $ 9 2022 $ 19 $ 9 2023 $ 20 $ 10 Years 2024-2028 $ 123 $ 63 POSTRETIREMENT BENEFITS OTHER THAN PENSIONS RELATED TO CONTINUING OPERATIONS The Company currently provides postretirement health care and life insurance benefits to most of its U.S. retirees. In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. Spouses for certain retirees are also eligible for reimbursement under the plan. Life insurance coverage is available for those who elect coverage under the retiree health plan. During 2014, the plan was amended to move from a self-insured model where employees were charged an estimated premium based on anticipated plan expenses for continued coverage, to a plan where retirees are provided a fixed contribution to a Health Retirement Account (HRA). Retirees can use the HRA funds to purchase insurance through a private exchange. Employees hired on or after January 1, 2004 are not eligible to participate in the plan. The Company has reviewed the impact of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Medicare Part D) on its financial statements. Although the Plan may currently qualify for a subsidy from Medicare, the amount of the subsidy is so small that the expenses incurred to file for the subsidy may exceed the subsidy itself. Therefore, the impact of any subsidy is ignored in the calculations as Autoliv will not be filing for any reimbursement from Medicare. CHANGES IN BENEFIT OBLIGATION FOR POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 2018 2017 Benefit obligation at beginning of year $ 17.8 $ 15.8 Service cost 0.3 0.3 Interest cost 0.6 0.6 Actuarial (gains) losses (1.2 ) 0.7 Benefits paid (0.3 ) (0.2 ) Other (1.7 ) 0.6 Benefit obligation at end of year $ 15.5 $ 17.8 The liability for postretirement benefits other than pensions is classified as other non-current liabilities in the balance sheet. COMPONENTS OF NET PERIODIC BENEFIT COST FROM CONTINUING OPERATIONS ASSOCIATED WITH THE POST RETIREMENT BENEFIT PLANS OTHER THAN PENSIONS PERIOD ENDED DECEMBER 31 2018 2017 2016 Service cost $ 0.3 $ 0.3 $ 0.3 Interest cost 0.6 0.6 0.7 Amortization of prior service cost (2.2 ) (2.2 ) (2.2 ) Amortization of actuarial loss (0.3 ) (0.5 ) — Net periodic benefit (credit) cost $ (1.6 ) $ (1.8 ) $ (1.2 ) COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX ASSOCIATED WITH POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 U.S. 2018 2017 Net actuarial loss (gain) $ (4.6 ) $ (3.7 ) Prior service cost (credit) (8.2 ) (10.6 ) Total accumulated other comprehensive income recognized in the balance sheet $ (12.8 ) $ (14.3 ) For measuring end-of-year obligations at December 31, 2016, health care trends are not needed due to the fixed-cost nature of the benefits provided in 2014 and beyond. After 2014, all retirees receive a fixed dollar subsidy toward the cost of their health benefits. This individual retiree subsidy will not increase in future years. The weighted average discount rate used to determine the U.S. postretirement benefit obligation was 4.45% in 2018 and 3.75% in 2017. The average discount rate used in determining the postretirement benefit cost was 3.75% in 2018, 4.40% in 2017 and 4.65% in 2016. A one percentage point increase or decrease in the annual health care cost trend rates would have had no impact on the Company’s net benefit cost for the current period or on the accumulated postretirement benefit obligation at December 31, 2017. This is due to the fixed-dollar nature of the benefits provided under the postretirement benefit plan. The estimated net gain and prior service credit for the postretirement benefit plans that will be amortized from other comprehensive income into net benefit cost over the next fiscal year are approximately $(2.5) million combined. The estimated future benefit payments for the postretirement benefits reflect expected future service as appropriate. POSTRETIREMENT BENEFITS EXPECTED PAYMENTS 2019 $ 0.4 2020 $ 0.4 2021 $ 0.5 2022 $ 0.5 2023 $ 0.6 Years 2024–2028 $ 3.5 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 21. Related Party Transactions Throughout the periods covered by consolidated financial statements, Autoliv purchased finished goods from Veoneer. Related party purchases from Veoneer amounted to approximately $78 million and $76 million for the full year 2018 and 2017, respectively. Amounts due to and due from related parties as of December 31, 2018 and December 31, 2017 are summarized in the below table: As of Related party (Dollars in millions) December 31, 2018 December 31, 2017 Related party receivables $ 15.0 $ — Related party payables 50.7 Related party accrued expenses 13.0 — Related party receivables primarily relate to an agreement between Autoliv and Veoneer. The related party payables are mainly driven by Reseller Agreements put in place in connection with the spin-off. The Reseller Agreements are between Autoliv and Veoneer to facilitate the temporary arrangement of the sale of Veoneer products in the interim period post spin-off. For further information, see Note 3. Discontinued Operations above. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 22. Segment Information The Company has one operating segment, Passive Safety, which includes Autoliv’s airbag and seatbelt products and components. The operating results of the operating segment are regularly reviewed by the Company’s chief operating decision maker to assess the performance of the individual operating segment and make decisions about resources to be allocated to the operating segment. The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers. Sales to individual customers representing 10% or more of net sales were: In 2018: Renault 15% (including Nissan and Mitsubishi) and VW 10%. In 2017: Renault 15% (including Nissan and Mitsubishi) and Ford 10%. In 2016: Renault 12% (including Nissan), Ford 10% and Hyundai 10%. NET SALES BY REGION 2018 2017 2016 Asia $ 3,194.9 $ 2,998.1 $ 2,830.2 Whereof: China 1,522.2 1,421.2 1,385.4 Japan 827.9 787.0 718.6 Rest of Asia 844.8 789.9 726.2 Americas 2,735.1 2,435.2 2,548.0 Europe 2,748.2 2,703.5 2,543.4 Total $ 8,678.2 $ 8,136.8 $ 7,921.6 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product. External sales in the U.S. amounted to $1,943 million, $1,689 million and $1,862 million in 2018, 2017 and 2016, respectively. Of the external sales, exports from the U.S. to other regions amounted to approximately $384 million, $362 million and $423 million in 2018, 2017 and 2016, respectively. NET SALES BY PRODUCT 2018 2017 2016 Airbag Products 1) $ 5,698.6 $ 5,343.2 $ 5,256.4 Seatbelt Products 1) 2,979.6 2,793.6 2,665.2 Total net sales $ 8,678.2 $ 8,136.8 $ 7,921.6 3) Including Corporate and other sales. LONG-LIVED ASSETS 2018 2017 Asia $ 881 $ 975 Whereof: China $ 500 $ 548 Japan $ 135 $ 196 Rest of Asia $ 246 $ 231 Americas $ 1,708 $ 1,572 Europe $ 847 $ 843 Total $ 3,436 $ 3,390 Long-lived assets in the U.S. amounted to $1,527 million and $1,601 million for 2018 and 2017, respectively. For 2018, $1,250 million (2017, $1,263 million) of the long-lived assets in the U.S. refers to intangible assets, principally from acquisition goodwill. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | 23. Earnings Per Share The computation of basic and diluted EPS under the two-class method were as follows (dollars and shares in millions): 2018 2017 2016 Numerator: Basic and diluted: Net income from continuing operations $ 375.9 $ 586.0 $ 558.4 Net (loss) income from discontinued operations (185.5 ) (158.9 ) 8.7 Net income attributable to controlling interest 190.4 427.1 567.1 Participating share awards with dividend equivalent rights 0.0 0.0 — Net income available to common shareholders 190.4 427.1 567.1 Earnings allocated to participating share awards 1) 0.0 0.0 — Net income attributable to common shareholders $ 190.4 $ 427.1 $ 567.1 Denominator: 1) Basic: Weighted average common stock 87.1 87.5 88.2 Add: Weighted average stock options/share awards 0.2 0.2 0.2 Diluted: 87.3 87.7 88.4 Basic EPS: Continuing operations $ 4.32 $ 6.70 $ 6.33 Discontinued operations (2.13 ) (1.82 ) 0.10 Basic EPS $ 2.19 $ 4.88 $ 6.43 Diluted EPS: Continuing operations $ 4.31 $ 6.68 $ 6.32 Discontinued operations (2.13 ) (1.81 ) 0.10 Diluted EPS $ 2.18 $ 4.87 $ 6.42 1) The Company’s unvested RSUs and PSs, of which some included the right to receive non-forfeitable dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. There were no antidilutive shares outstanding for the year ended December 31, 2018, approximately 0.1 million antidilutive shares outstanding for the year ended December 31, 2017 and 0.2 million antidilutive shares outstanding for the year ended December 31, 2016. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Events There were no reportable events subsequent to December 31, 2018. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | 25. Quarterly Financial Data (unaudited) 2018 Q1 Q2 Q3 Q4 Net sales $ 2,240.9 $ 2,211.5 $ 2,033.0 $ 2,192.8 Gross profit 460.3 439.7 386.1 425.2 Income from Continuing Operations before income taxes 228.9 210.1 171.3 2.1 Income from Continuing Operations 159.1 193.2 118.0 (92.8 ) Net income attributable to controlling interest from Continuing Operations 158.7 192.7 117.5 (93.0 ) Earnings per share Continuing Operations – basic 1.82 2.21 1.35 (1.07 ) – diluted 1.82 2.20 1.34 (1.06 ) Dividends paid 0.60 0.62 0.62 0.62 2017 Q1 Q2 Q3 Q4 Net sales $ 2,041.6 $ 1,983.9 $ 1,952.6 $ 2,158.7 Gross profit 428.7 415.3 394.9 440.8 Income from Continuing Operations before income taxes 199.7 201.2 150.7 240.8 Income from Continuing Operations 148.3 136.1 106.2 197.4 Net income attributable to controlling interest from Continuing Operations 147.9 135.7 105.7 196.7 Earnings per share Continuing Operations – basic 1.67 1.54 1.22 2.26 – diluted 1.67 1.54 1.21 2.26 Dividends paid 0.58 0.60 0.60 0.60 Quarterly movements In the fourth quarter of 2018, income from Continuing Operations before taxes was negatively impacted by the Company recognizing an accrual of $210 million in connection with the remaining portion of the European Commission’s investigation of anti-competitive behavior among suppliers of occupant safety systems in the European Union. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include Autoliv, Inc. and all companies over which Autoliv, Inc. directly or indirectly exercises control, which as a general rule means that the Company owns more than 50% of the voting rights. Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant to the VIE. All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. Investments in affiliated companies in which the Company exercises significant influence over the operations and financial policies, but does not control, are reported using the equity method of accounting. Generally, the Company owns between 20 and 50 percent of such investments. |
Business Combinations | BUSINESS COMBINATIONS Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis. It is classified as a liability based on appropriate GAAP. |
Equity Method Investments | EQUITY METHOD INVESTMENTS Investments accounted for under the equity method, means that a proportional share of the equity method investment’s net income increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of Net Income, the proportional share of the net income (loss) is reported as Income from equity method investments. |
Use of Estimates | USE OF ESTIMATES The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of variable consideration for our contracts with customers, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and product liabilities, restructuring charges, uncertain tax positions, valuation allowances and legal proceedings. Actual results could differ from those estimates. |
Revenue Recognition | REVENUE RECOGNITION In accordance with ASC 606, Revenue from Contracts with Customers In addition, from time to time, Autoliv may make payments to customers in connection with ongoing and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments unless the payment concession can be clearly linked to the future business. If the payments are capitalized, the amounts are amortized to revenue as the related goods are transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of goods and services The following is a description of principal activities from which the Company generates its revenue. The Company has after the spin-off of its Electronics business currently one operating segment, Passive safety systems, which includes airbag and seatbelt products and components. The Company generates revenue from the sale of production parts to original equipment manufacturers (“OEMs”). The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any price concessions or annual price adjustments, is based on their stand-alone selling prices for each of the products. The stand-alone selling prices are determined based on the cost-plus margin approach. The Company recognizes revenue for production parts primarily at a point in time. For production parts with revenue recognized at a point in time, the Company recognizes revenue upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically FOB shipping point). There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and a related asset and associated cost of goods sold and inventory. However, the financial impact of these contracts is immaterial considering the very short production cycles and limited inventory days on hand, which is typical for the automotive industry. The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e. price concessions or annual price adjustments). Customers typically pay for the production parts based on customary business practices. |
Research, Development and Engineering | RESEARCH, DEVELOPMENT AND ENGINEERING (R,D&E) Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of expense reimbursements from contracts to perform engineering design and product development fulfillment activities related to the production of parts. Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. The aggregate amount of such assets is not significant in any period presented. Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer funded tooling is met or the criteria for capitalization as Property, Plant & Equipment (P,P&E) for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Net Income as Cost of sales. |
Stock Based Compensation | STOCK BASED COMPENSATION The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation - Stock Compensation. The Company records the compensation expense for awards under the Stock Incentive Plan, including Restricted Stock Units (RSUs), Performance Shares (PSs) and stock options (SOs), over the respective vesting period. For further details, see Note 17. |
Income Taxes | INCOME TAXES Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or refundable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. The Company classifies deferred tax assets and liabilities as non-current in the Consolidated Balance Sheet. Tax assets and liabilities are not offset unless attributable to the same tax jurisdiction and netting is possible according to law and, as it relates to payables and receivables, expected to take place in the same period. Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized and measured in the financial statements when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax benefits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized and measured if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. |
Earnings Per Share | EARNINGS PER SHARE The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). The Company’s unvested RSUs, of which some include the right to receive non-forfeitable dividend equivalents, are considered participating securities. The diluted EPS reflects the potential dilution that could occur if common stock were issued for awards under the Company’s Stock Incentive Plan and is calculated using the more dilutive method of either the two-class method or the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. For unvested restricted stock, assumed proceeds under the treasury stock method will include unamortized compensation cost and windfall tax benefits or shortfalls. Post spin-off assumed proceeds under the treasury stock method related to RSUs will only include unamortized compensation cost related to Autoliv employees holding Autoliv RSUs. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. For further details, see Notes 17 and 23. |
Cash Equivalents | CASH EQUIVALENTS The Company considers all highly liquid investment instruments purchased with an original maturity of three months or less to be cash equivalents. |
Receivables | RECEIVABLES The Company has guidelines for calculating the allowance for bad debts. In determining the amount of a bad debt allowance, management uses its judgment to consider factors such as the age of the receivables, the Company’s prior experience with the customer, the experience of other enterprises in the same industry, the customer’s ability to pay, and/or an appraisal of current economic conditions. Collateral is typically not required. There can be no assurance that the amount ultimately realized for receivables will not be materially different than that assumed in the calculation of the allowance. |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company uses derivative financial instruments, primarily forwards, options and swaps to reduce the effects of fluctuations in foreign exchange rates, interest rates and the resulting variability of the Company’s operating results. On the date that a derivative contract is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge) or (3) an economic hedge not applying special hedge accounting pursuant to ASC 815. When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statements of Net Income along with the offsetting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statements of Net Income when the hedge transaction affects net earnings. 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. All derivatives are recognized in the consolidated financial statements at fair value. For certain other derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. For further details on the Company’s financial instruments, see Notes 5 and 14. |
Inventories | INVENTORIES The cost of inventories is computed according to the first-in first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment are recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life or the lease term. Amortization on capital leases is recognized with depreciation expense in the Consolidated Statements of Net Income over the shorter of the assets’ expected life or the lease contract term. Repairs and maintenance are expensed as incurred. |
Long-Lived Asset Impairment | LONG-LIVED ASSET IMPAIRMENT The Company evaluates the carrying value and useful lives of long-lived assets other than goodwill when indications of impairment are evident or it is likely that the useful lives have decreased, in which case the Company depreciates the assets over the remaining useful lives. Impairment testing is primarily done by using the cash flow method based on undiscounted future cash flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the respective carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the carrying amounts of the long-lived asset are considered recoverable and an impairment cannot be recorded. However, if the carrying amount of a group of assets exceeds the undiscounted cash flows, an entity must then measure the long-lived assets’ fair value to determine whether an impairment loss should be recognized, generally using a discounted cash flow model. |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized, but is subject to at least an annual review for impairment. Other intangible assets, principally related to acquired technology, are amortized over their useful lives which range from 3 to 25 years. The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. For 2018 the Company has opted to use a qualitative assessment for impairment testing. The qualitative assessment permits the Company to assess whether it is more than likely than not (i.e. a likelihood of greater than 50%) that an indefinite-lived intangible asset is impaired. If the Company concludes based on the qualitative assessment that it is not more likely than not that the fair value of an indefinite-lived intangible assets is less than its carrying amount, it would not have to quantitatively determine the asset’s fair value. In conducting its qualitative impairment testing, the Company has used the most recent fair value calculation for its indefinite-lived intangible assets as the starting point for the qualitative assessment. The Company has also considered external factors that could affect the significant inputs used to determine fair value. There were no impairments of goodwill related to the Company’s continuing operations from 2016 through 2018. |
Warranties and Recalls | WARRANTIES AND RECALLS The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs typically include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the defective part. Insurance receivables, related to recall issues covered by the insurance, are included within other current assets in the Consolidated Balance Sheets. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. |
Restructuring Provisions | RESTRUCTURING PROVISIONS The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. Estimates of restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates that restructuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. |
Pension Obligations | PENSION OBLIGATIONS The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefits that each employee will receive for services performed during a specified period of employment. The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any) (see Note 20). The plan assets are measured at fair value. The inputs to the fair value measurement of the plan assets are mainly level 2 inputs (see Note 5). |
Contingent Liabilities | CONTINGENT LIABILITIES Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters (see Note 18). The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. The Company records liabilities for claims, lawsuits and proceedings when they are probable and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. The Company believes, based on currently available information, that the resolution of outstanding matters, other than the antitrust matters described in Note 18, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. |
Translation of Non-U. S. Subsidiaries and Receivables and Liabilities in Non-Functional Currencies | TRANSLATION OF NON-U.S. SUBSIDIARIES The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. The statements of operations of these subsidiaries is translated into U.S. dollars using the average exchange rates for the year. Translation differences are reflected in equity as a component of OCI. RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES Receivables and liabilities not denominated in functional currencies are converted at year-end exchange rates. Net transaction gains/(losses), reflected in the Consolidated Statements of Net Income amounted to $(22.1) million in 2018, $(27.0) million in 2017 and $(4.3) million in 2016, and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other non-operating items, net if they relate to financial receivables and liabilities. |
New Accounting Standards | NEW ACCOUNTING STANDARDS Adoption of New Accounting Standards In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. In the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Balance Sheet (Dollars in millions) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets Inventories, net 1) $ 859.1 $ (17.3 ) $ 841.8 Other current assets 1) 228.9 22.0 250.9 Equity Retained Earnings 1) 4,079.2 3.3 4,082.5 1) Impact at adoption which included both continuing and discontinued operations. Year ended December 31, 2018 Income Statement (Dollars in millions) As Reported Balances without adoption of ASU 2014-09 Effect of Changes Net sales $ 8,678.2 $ 8,673.7 $ 4.5 Cost of sales (6,966.9 ) (6,963.1 ) (3.8 ) Operating income 686.0 685.3 0.7 As of December 31, 2018 Balance Sheet (Dollars in millions) As Reported Balances without adoption of ASU 2014-09 Effect of Changes Assets Inventories, net $ 757.9 $ 773.6 $ (15.7 ) Other current assets 244.6 225.1 19.5 Equity Retained Earnings 2,041.8 2,039.1 2.7 Accounting Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Com pensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, In August 2017, the FASB issued ASU 2017-12, Derivative and Hedging (Topic 815), Targeted improvements to accounting for hedging activities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), During the fourth quarter, the Company continued its process to identify leasing arrangements and to compare its accounting policies and practices to the requirements of the new standard. Specifically, the Company is continuing to assess whether there are any “embedded leases” in arrangements with its suppliers and customers that may result in right to use assets or in the Company being a lessor for tools they own that are dedicated to a specific customer. In addition, the Company has implemented a new system to assist with lease accounting. The Company regularly enters into operating leases, for which current GAAP does not require recognition on the balance sheet. The Company anticipates that the adoption of ASU 2016-02 will primarily result in the recognition of most operating leases on its balance sheet resulting in an increase in reported right-of-use assets and leasing liabilities. The Company will continue to assess the impact from the new standard, including consideration of control and process changes to capture lease data necessary to apply ASU 2016-02. The Company anticipates that the adoption of the new standard will result in recording lease assets and lease liabilities in the range of $165 million and $180 million as of January 1, 2019. In addition, the Company does not anticipate a material impact to the financial statements where they are deemed to be the lessor in an “embedded lease” arrangement. |
Reclassifications | RECLASSIFICATIONS Certain prior-year amounts have been reclassified to conform to current year presentation (see Note 1 regarding discontinued operations). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary of Impact of Adoption of New Accounting Standards | Balance Sheet (Dollars in millions) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets Inventories, net 1) $ 859.1 $ (17.3 ) $ 841.8 Other current assets 1) 228.9 22.0 250.9 Equity Retained Earnings 1) 4,079.2 3.3 4,082.5 1) Impact at adoption which included both continuing and discontinued operations. Year ended December 31, 2018 Income Statement (Dollars in millions) As Reported Balances without adoption of ASU 2014-09 Effect of Changes Net sales $ 8,678.2 $ 8,673.7 $ 4.5 Cost of sales (6,966.9 ) (6,963.1 ) (3.8 ) Operating income 686.0 685.3 0.7 As of December 31, 2018 Balance Sheet (Dollars in millions) As Reported Balances without adoption of ASU 2014-09 Effect of Changes Assets Inventories, net $ 757.9 $ 773.6 $ (15.7 ) Other current assets 244.6 225.1 19.5 Equity Retained Earnings 2,041.8 2,039.1 2.7 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Financial Results of Discontinued Operations, Carrying Value of Assets and Liabilities Reclassified as Discontinued Operations and Significant Non-Cash Items of Discontinued Operations | The financial results of Veoneer are presented as loss from discontinued operations, net of income taxes in the Consolidated Statements of Income. The following table presents the financial results of Veoneer (dollars in millions). 2018 includes six months of discontinued operations. Years ended December 31 2018 2017 2016 Net sales $ 1,122.9 $ 2,245.8 $ 2,152.0 Cost of sales (896.4 ) (1,776.5 ) (1,723.0 ) Gross profit 226.5 469.3 429.0 Selling, general and administrative expenses (59.7 ) (83.1 ) (81.7 ) Research, development and engineering expenses, net (224.0 ) (370.3 ) (293.7 ) Goodwill, Impairment charge — (234.2 ) — Amortization of intangibles (10.5 ) (35.8 ) (33.2 ) Other income (expense), net (53.4 ) (0.2 ) (3.7 ) Operating loss (121.1 ) (254.3 ) 16.7 Loss from equity method investments (29.9 ) (30.7 ) — Interest income 0.7 — — Interest expense (0.4 ) (0.1 ) (0.2 ) Other non-operating items, net 0.5 (0.8 ) 3.1 Loss before income taxes (150.2 ) (285.9 ) 19.6 Income tax (expense) benefit (43.6 ) 0.9 (17.9 ) Loss from discontinued operations, net of income taxes (193.8 ) (285.0 ) 1.7 Less: Net loss attributable to non-controlling interest (8.3 ) (126.1 ) (7.0 ) Net loss from discontinued operations $ (185.5 ) $ (158.9 ) $ 8.7 The following table summarizes the carrying value of major classes of assets and liabilities of Veoneer, reclassified as assets and liabilities of discontinued operations at December 31, 2017 (dollars in millions). At December 31, 2017 ASSETS Receivables, net $ 460.5 Inventories, net 154.8 Other current assets 31.9 Total current assets, discontinued operations 647.2 Property, plant and equipment, net 364.2 Investments and other non-current assets 177.5 Goodwill 291.8 Intangible assets, net 122.2 Total non-current assets, discontinued operations $ 955.7 LIABILITIES Accounts payable $ 323.5 Accrued expenses 199.1 Other current liabilities 45.6 Total current liabilities, discontinued operations 568.2 Long-term debt 11.0 Pension liability 19.1 Other non-current liabilities 34.0 Total non-current liabilities, discontinued operations $ 64.1 The following table presents depreciation, amortization, capital expenditures, acquisition of businesses and significant non-cash items of the discontinued operations related to Veoneer (dollars in millions). 2018 includes six months of discontinued operations. Years ended December 31 2018 2017 2016 Depreciation $ 44.8 $ 82.9 $ 69.7 Amortization of intangible assets 10.5 35.8 33.2 Capital expenditures 71.1 109.6 100.9 Acquisition in affiliate, net 71.0 123.9 227.4 M/A-COM earn-out adjustment (14.0 ) (12.7 ) — Undistributed loss from equity method investment 29.9 30.7 — |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Continuing Operations Disaggregated by Primary Regions and Products | In the following tables, revenue from the Company’s continuing operations is disaggregated by primary regions and products. Net Sales by Region (Dollars in millions) Years ended December 31 2018 2017 2016 China $ 1,522.2 $ 1,421.2 $ 1,385.4 Japan 827.9 787.0 718.6 Rest of Asia 844.8 789.9 726.2 Americas 2,735.1 2,435.2 2,548.0 Europe 2,748.2 2,703.5 2,543.4 Total net sales $ 8,678.2 $ 8,136.8 $ 7,921.6 Net Sales by Products (Dollars in millions) Years ended December 31 2018 2017 2016 Airbag Products and Other 1) $ 5,698.6 $ 5,343.2 $ 5,256.4 Seatbelt Products 1) 2,979.6 2,793.6 2,665.2 Total net sales $ 8,678.2 $ 8,136.8 $ 7,921.6 1) |
Summary of Information about Receivables, Contract Assets, and Contract Liabilities from Contracts with Customers | The following tables provides information about receivables, contract assets, and contract liabilities from contracts with customers. Contract Balances with Customers (Dollars in millions) At December 31 2018 2017 Receivables, net $ 1,652.1 $ 1,696.7 Contract assets 1) 19.5 — Contract liabilities 2) 29.4 33.0 1) 2) Receivables, net of allowance (Dollars in millions) At December 31 2018 2017 Receivables $ 1,659.4 $ 1,703.0 Allowance at beginning of period (6.3 ) (4.2 ) Net decrease/(increase) of allowance (1.3 ) (1.8 ) Translation difference 0.3 (0.3 ) Allowance at end of period (7.3 ) (6.3 ) Receivables, net of allowance $ 1,652.1 $ 1,696.7 |
Summary of Changes in Contract Assets and Contract Liabilities | Changes in the contract assets and the contract liabilities balances during the period are as follows: Change in Contract Balances with Customers (Dollars in millions) At December 31, 2018 Contract assets Contract liabilities Beginning balance $ — $ 33.0 Increases/(decreases) due to cumulative catch up adjustment 15.0 — Increases/(decreases) due to revenue recognized 75.6 (7.4 ) Increases/(decreases) due to cash received — — Increases/(decreases) due to transfer to receivables (71.1 ) — Translation difference — 3.8 Ending balance $ 19.5 $ 29.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
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 for the continuing operations as of December 31, 2018 and December 31, 2017 DECEMBER 31, 2018 DECEMBER 31, 2017 Fair Value Measurements Fair Value Measurements Derivative Derivative liability Derivative asset Derivative liability Nominal (Other current (Other current Nominal (Other current (Other current Description volume assets) liabilities) volume assets) liabilities) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign exchange swaps, less than 6 months 659.1 1) 1.9 2) 1.1 3) 468.2 4) 2.4 5) 0.3 6) TOTAL DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS $ 659.1 $ 1.9 $ 1.1 $ 468.2 $ 2.4 $ 0.3 1 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $659.1 million. 2 ) Net amount after deducting for offsetting swaps under ISDA agreements is $1.9 million. 3 ) Net amount after deducting for offsetting swaps under ISDA agreements is $1.1 million. 4 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $468.2 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. |
Fair Value of Debt | The fair value and carrying value of debt for the continuing operations are summarized in the table below (dollars in millions). DECEMBER 31, 2018 DECEMBER 31, 2018 DECEMBER 31, 2017 DECEMBER 31, 2017 CARRYING VALUE 1) FAIR VALUE CARRYING VALUE 1) FAIR VALUE LONG-TERM DEBT U.S. Private placement $ 1,041.0 $ 1,061.1 $ 1,310.5 $ 1,379.9 Eurobond 568.0 567.8 — — Other long-term debt — — 0.2 0.2 TOTAL $ 1,609.0 $ 1,628.9 $ 1,310.7 $ 1,380.1 SHORT-TERM DEBT Commercial paper $ 342.6 $ 342.6 $ — $ — Short-term portion of long-term debt 268.1 270.4 0.2 0.2 Overdrafts and other short-term debt 10.0 10.0 19.5 19.5 TOTAL $ 620.7 $ 623.0 $ 19.7 $ 19.7 1) Debt as reported in balance sheet. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | INCOME BEFORE INCOME TAXES 2018 2017 2016 U.S. $ 47.0 $ 89.0 $ 172.0 Non-U.S. 565.4 703.4 612.2 Total $ 612.4 $ 792.4 $ 784.2 |
Schedule of Provision for Income Taxes | PROVISION FOR INCOME TAXES 2018 2017 2016 Current U.S. federal $ 31.6 $ 53.4 $ 79.2 Non-U.S. 192.7 162.8 167.6 U.S. state and local 10.1 9.9 3.5 Deferred U.S. federal 0.8 21.8 (15.8 ) Non-U.S. (0.2 ) (44.4 ) (9.7 ) U.S. state and local (0.1 ) 0.9 (0.5 ) Total income tax expense $ 234.9 $ 204.4 $ 224.3 |
Schedule of Effective Income Tax Rate | EFFECTIVE INCOME TAX RATE 2018 2017 2016 U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Foreign tax rate variances 5.5 (7.4 ) (6.4 ) Tax credits (3.9 ) (3.3 ) (2.8 ) Change in Valuation Allowances (3.2 ) (4.8 ) 1.3 Current year losses with no benefit 0.5 0.3 1.2 Net operating loss carry-forwards (0.1 ) (3.7 ) (3.4 ) Changes in tax reserves 3.4 0.8 0.5 U.S. Expense Allocation 0.0 2.0 2.0 Earnings of equity investments (0.1 ) (0.1 ) (0.1 ) Withholding taxes 3.5 2.1 2.5 State taxes, net of federal benefit 1.1 0.3 0.2 Antitrust settlement 9.9 — — U.S. GILTI Tax 1.7 — — Change in U.S. tax rate — 3.0 — Deemed mandatory repatriation — 3.1 — Other, net (0.9 ) (1.5 ) (1.4 ) Effective income tax rate 38.4 % 25.8 % 28.6 % |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: UNRECOGNIZED TAX BENEFITS 2018 2017 2016 Unrecognized tax benefits at beginning of year $ 29.6 $ 27.2 $ 25.2 Increases as a result of tax positions taken during a prior period 24.0 2.0 4.5 Decreases as a result of tax positions taken during a prior period — — (0.2 ) Increases as a result of tax positions taken during the current period 4.7 6.8 5.8 Decreases as a result of tax positions taken during the current period (3.1 ) — (1.7 ) Decreases relating to settlements with taxing authorities (3.2 ) (7.1 ) (1.3 ) Decreases resulting from the lapse of the applicable statute of limitations (1.5 ) (0.3 ) (3.5 ) Translation Difference (0.9 ) 1.0 (1.6 ) Total unrecognized tax benefits at end of year $ 49.6 $ 29.6 $ 27.2 |
Schedule of Deferred Taxes | The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows. DEFERRED TAXES DECEMBER 31 2018 2017 2016 Assets Provisions $ 104.9 $ 107.3 $ 101.5 Costs capitalized for tax 18.2 18.6 16.8 Property, plant and equipment 13.0 14.2 18.2 Retirement Plans 50.1 50.0 65.5 Tax receivables, principally NOL’s 113.9 150.2 211.7 Deferred tax assets before allowances $ 300.1 $ 340.3 $ 413.7 Valuation allowances (71.0 ) (110.6 ) (199.6 ) Total $ 229.1 $ 229.7 $ 214.1 Liabilities Acquired intangibles $ (6.1 ) $ (6.6 ) $ (12.3 ) Statutory tax allowances (0.5 ) — — Distribution taxes (22.9 ) (22.8 ) (16.0 ) Other (10.1 ) (3.9 ) (4.9 ) Total $ (39.6 ) $ (33.3 ) $ (33.2 ) Net deferred tax asset $ 189.5 $ 196.4 $ 180.9 |
Schedule of Valuation Allowances Against Deferred Tax Assets | The following table summarizes the activity related to the Company’s valuation allowances: VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 2018 2017 2016 Allowances at beginning of year $ 110.6 $ 199.6 $ 177.7 Benefits reserved current year 6.4 22.9 32.3 Benefits recognized current year (36.9 ) (117.0 ) (13.8 ) Write-offs and other changes — (0.1 ) (0.5 ) Translation difference (9.1 ) 5.2 3.9 Allowances at end of year $ 71.0 $ 110.6 $ 199.6 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Receivables | DECEMBER 31 2018 2017 2016 Receivables $ 1,659.4 $ 1,703.0 $ 1,519.3 Allowance at beginning of year $ (6.3 ) $ (4.2 ) $ (3.9 ) Reversal of allowance 0.9 0.9 0.5 Addition to allowance (3.8 ) (3.9 ) (1.5 ) Write-off against allowance 1.6 1.2 0.5 Translation difference 0.3 (0.3 ) 0.2 Allowance at end of year $ (7.3 ) $ (6.3 ) $ (4.2 ) Total receivables, net of allowance $ 1,652.1 $ 1,696.7 $ 1,515.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | DECEMBER 31 2018 2017 2016 Raw material $ 370.9 $ 333.2 $ 286.4 Work in progress 277.4 263.8 233.1 Finished products 194.7 187.9 166.2 Inventories $ 843.0 $ 784.9 $ 685.7 Inventory reserve at beginning of year $ (80.6 ) $ (76.7 ) $ (68.2 ) Reversal of reserve 1.4 4.8 2.9 Addition to reserve (13.9 ) (7.3 ) (16.2 ) Write-off against reserve 5.3 5.2 3.0 Translation difference 2.7 (6.6 ) 1.8 Inventory reserve at end of year $ (85.1 ) $ (80.6 ) $ (76.7 ) Total inventories, net of reserve $ 757.9 $ 704.3 $ 609.0 |
Investments and Other Non-cur_2
Investments and Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments All Other Investments [Abstract] | |
Schedule of Investments and Other Non-Current Assets | DECEMBER 31 2018 2017 Equity method investments $ 12.5 $ 12.9 Deferred tax assets 235.6 248.9 Income tax receivables 33.6 30.4 Other non-current assets 41.8 48.8 Investments and other non-current assets $ 323.5 $ 341.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | DECEMBER 31 2018 2017 Estimated life Land and land improvements $ 114.7 $ 113.4 n/a to 15 Machinery and equipment 3,496.8 3,276.1 3-8 Buildings 822.9 816.2 20-40 Construction in progress 374.3 370.6 n/a Property, plant and equipment $ 4,808.7 $ 4,576.3 Less accumulated depreciation (3,118.6 ) (2,967.4 ) Net of depreciation $ 1,690.1 $ 1,608.9 |
Depreciation Expense | DEPRECIATION INCLUDED IN 2018 2017 2016 Cost of sales $ 300.9 $ 268.9 $ 248.3 Selling, general and administrative expenses 13.9 12.5 8.6 Research, development and engineering expenses, net 15.9 14.5 12.7 Total $ 330.7 $ 295.9 $ 269.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | GOODWILL 2018 2017 Carrying amount at beginning of year $ 1,397.0 $ 1,380.6 Translation differences (7.1 ) 16.4 Carrying amount at end of year $ 1,389.9 $ 1,397.0 |
Schedule of Amortizable Intangibles | AMORTIZABLE INTANGIBLES 2018 2017 Gross carrying amount $ 391.6 $ 355.0 Accumulated amortization (358.9 ) (312.4 ) Carrying value $ 32.7 $ 42.6 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Change in Balance Sheet Position of Restructuring Reserves Related to Continuing Operations | The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2017 to December 31, 2018 related to the continuing operations. December 31 Provision/ Provision/ Cash Translation December 31 2017 Charge Reversal payments difference 2018 Restructuring employee-related $ 39.4 $ 9.0 $ (0.1 ) $ (13.6 ) $ (1.5 ) $ 33.2 Other 0.2 0.2 — — (0.2 ) 0.2 Total reserve $ 39.6 $ 9.2 $ (0.1 ) $ (13.6 ) $ (1.7 ) $ 33.4 December 31 Provision/ Provision/ Cash Translation December 31 2016 Charge Reversal payments difference 2017 Restructuring employee-related $ 35.7 $ 29.3 $ (6.9 ) $ (23.3 ) $ 4.6 $ 39.4 Other 0.1 0.2 — — (0.1 ) 0.2 Total reserve $ 35.8 $ 29.5 $ (6.9 ) $ (23.3 ) $ 4.5 $ 39.6 December 31 Provision/ Provision/ Cash Translation December 31 2015 Charge Reversal payments difference 2016 Restructuring employee-related $ 86.9 $ 23.6 $ (2.6 ) $ (71.3 ) $ (0.9 ) $ 35.7 Other 0.2 0.1 — — (0.2 ) 0.1 Total reserve $ 87.1 $ 23.7 $ (2.6 ) $ (71.3 ) $ (1.1 ) $ 35.8 |
Product-Related Liabilities (Ta
Product-Related Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
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. 2018 2017 2016 Reserve at beginning of the year $ 95.6 $ 90.6 $ 39.0 Change in reserve 20.6 32.2 68.1 Cash payments (54.3 ) (29.4 ) (15.6 ) Translation difference 0.3 2.2 (0.9 ) Reserve at end of the year $ 62.2 $ 95.6 $ 90.6 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Profile | DEBT PROFILE Total PRINCIPAL AMOUNT BY EXPECTED MATURITY 2019 2020 2021 2022 2023 Thereafter long- term Total Eurobond $ — $ — $ — $ — $ 572.7 $ — $ 572.7 $ 572.7 U.S. private placement notes $ 268.0 $ — $ 275.0 $ — $ — $ 767.0 $ 1,042.0 $ 1,310.0 Commercial papers $ 342.6 $ — $ — $ — $ — $ — — $ 342.6 Other short-term debt $ 10.1 $ — $ — $ — $ — $ — $ — $ 10.1 Total principal amount $ 620.7 $ — $ 275.0 $ — $ 572.7 $ 767.0 $ 1,614.7 $ 2,235.4 1) 1) The difference between reported total debt and total principal amount is mainly related to capitalized debt issuance costs. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Dividends Paid | DIVIDENDS 2018 2017 2016 Cash dividend paid per share $ 2.46 $ 2.38 $ 2.30 Cash dividend declared per share $ 2.48 $ 2.40 $ 2.32 |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS)/ ENDING BALANCE 1) 2018 2017 2016 Cumulative translation adjustments $ (381.2 ) $ (230.5 ) $ (493.5 ) Net (loss) gain of cash flow hedge derivatives — (0.8 ) 8.1 Net pension liability (55.0 ) (56.2 ) (80.1 ) Distribution to Veoneer 13.0 — — Total (ending balance) $ (423.2 ) $ (287.5 ) $ (565.5 ) Deferred taxes on the pension liability $ 15.4 $ 16.5 $ 35.3 1) The components of Other Comprehensive Income (Loss) are net of any related income tax effects. |
Share Repurchase Program | SHARES 2018 2017 2016 Shares repurchased (shares in millions) — 1.4 — Cash paid for shares $ — $ 157.0 $ — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Payments for Interest and Income Taxes | Payments for interest and income taxes were as follows: 2018 2017 2016 Interest $ 66 $ 64 $ 64 Income taxes $ 214 $ 204 $ 247 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Number of Restricted Stock Units and Performance Shares | Information on the number of RSUs, PSs and SOs related to the Stock Incentive Plan during the period of 2016 to 2018 is as follows. RSUs 2018 2017 2016 Weighted average fair value at grant date 1) $ 131.51 $ 105.64 $ 100.77 Outstanding at beginning of year 188,410 188,494 204,552 Granted 131,246 84,771 71,870 Shares issued (84,425 ) (70,795 ) (66,651 ) Cancelled/Forfeited/Expired (6,485 ) (14,060 ) (21,277 ) Spin conversion 2) 33,328 — — Outstanding at end of year 3) 262,074 188,410 188,494 1) Weighted average fair value at grant date pre-spin. 2) Reflects the impact of the cancellation of PS awards outstanding as of the Distribution Date, and the conversion to RSUs in accordance with the conversion factor described above. 3) Outstanding at the end of 2018 reflects the RSUs held by employees of Autoliv and Veoneer, in accordance with the conversion factor described above. Outstanding at the end of 2017 and 2016, respectively reflects RSUs held by employees of Autoliv. The corresponding weighted average grant date fair value after applying the conversion factor is $100.74 as of December 31, 2018. PSs 2018 2017 2016 Weighted average fair value at grant date 1) $ 105.87 $ 105.87 $ 98.57 Outstanding at beginning of year 139,891 138,548 — Change in performance conditions — (69,274 ) — Granted 2) 588 75,379 143,740 Shares issued — — — Cancelled/Forfeited/Expired (3,076 ) (4,762 ) (5,192 ) Spin conversion 3) (137,403 ) — — Outstanding at end of year 4) — 139,891 138,548 1) Weighted average fair value at grant date pre-spin. 2) 2018 grants reflect awards issued pre-spin as a result of dividend equivalent rights. 3) Reflects the replacement of awards due to the spin-off. Outstanding PS awards were converted to RSU awards in accordance with the conversion factor described above. 4) O utstanding at the end of 2017 and 2016, respectively reflects PSs held by employees of Autoliv. |
Schedule of Options Exercisable | Information on the number of RSUs, PSs and SOs related to the Stock Incentive Plan during the period of 2016 to 2018 is as follows. SOs Number of options Weighted average exercise price Outstanding at Dec 31, 2015 473,051 $ 87.88 Exercised (51,084 ) 88.10 Cancelled/Forfeited/Expired (10,858 ) 102.31 Outstanding at Dec 31, 2016 411,109 $ 87.47 Exercised (100,184 ) 79.58 Cancelled/Forfeited/Expired (10,976 ) 112.20 Outstanding at Dec 31, 2017 299,949 $ 89.20 Exercised (92,485 ) 86.59 Cancelled/Forfeited/Expired — — Spin conversion 1) (65,390 ) 88.75 Outstanding at Dec 31, 2018 2) 142,074 $ 63.43 OPTIONS EXERCISABLE At December 31, 2016 254,842 $ 71.48 At December 31, 2017 299,949 $ 89.20 At December 31, 2018 142,074 $ 63.43 1) Reflects the cancellation of SOs outstanding as of the Distribution Date, and the conversion to new awards in accordance with the conversion factor described above. The weighted average exercise price reflects the exercise price of the shares cancelled due to the spin-off. 2) Reflects outstanding SOs held by employees of Autoliv and Veoneer at the end of the year and the weighted average exercise price, in accordance with the conversion factor described above. |
Summary of Stock Options Outstanding and Exercisable | The following summarizes information about SOs outstanding and exercisable at December 31, 2018: RANGE OF EXERCISE PRICES Number outstanding & exercisable Remaining contract life (in years) Weighted average exercise price $11.57 5,885 0.14 $ 11.57 $31.71 7,047 1.13 31.71 $47.52– $49.07 27,553 3.64 48.30 $51.74 10,120 2.15 51.74 $67.29 37,768 5.14 67.29 $80.40 53,701 6.13 80.40 142,074 4.64 $ 63.43 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pension Plans, Defined Benefit | |
Schedule of Changes in Benefit Obligations and Plan Assets Related to Continuing Operations | CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS RELATED TO CONTINUING OPERATIONS FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Benefit obligation at beginning of year $ 368.6 $ 361.2 $ 220.9 $ 190.6 Service cost 8.7 9.0 10.8 10.4 Interest cost 12.8 14.8 5.7 5.5 Actuarial (gain) loss due to: Change in discount rate (44.6 ) 53.4 (12.1 ) 5.9 Experience 0.8 (2.0 ) 4.7 (4.3 ) Other assumption changes 3.5 4.2 4.8 1.4 Plan amendments — — (0.1 ) (0.5 ) Benefits paid (17.7 ) (9.8 ) (7.9 ) (7.9 ) Plan settlements — — (0.8 ) (0.1 ) Curtailments — (62.2 ) — — Special termination benefits — — 0.5 0.3 Translation difference — — (9.6 ) 19.6 Benefit obligation at end of year $ 332.1 $ 368.6 $ 216.9 $ 220.9 Fair value of plan assets at beginning of year $ 297.9 $ 256.5 $ 84.8 $ 76.5 Actual return on plan assets (13.9 ) 44.5 (1.9 ) 2.3 Company contributions 6.7 6.7 9.0 6.3 Benefits paid (17.7 ) (9.8 ) (7.9 ) (7.9 ) Plan settlements — — (0.8 ) (0.1 ) Translation difference — — (5.4 ) 7.7 Fair value of plan assets at end of year $ 273.0 $ 297.9 $ 77.8 $ 84.8 Funded status recognized in the balance sheet $ (59.1 ) $ (70.7 ) $ (139.1 ) $ (136.1 ) |
Schedule of Components of Net Periodic Benefit Cost from Continuing Operations | COMPONENTS OF NET PERIODIC BENEFIT COST FROM CONTINUING OPERATIONS ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS U.S. 2018 2017 2016 Service cost $ 8.7 $ 9.0 $ 8.3 Interest cost 12.8 14.8 14.6 Expected return on plan assets (20.4 ) (17.6 ) (16.6 ) Amortization of prior service credit 0.1 0.0 (0.9 ) Amortization of actuarial loss 2.2 6.0 4.8 Curtailment loss — 0.2 — Net periodic benefit cost $ 3.4 $ 12.4 $ 10.2 Non-U.S. 2018 2017 2016 Service cost $ 10.8 $ 10.4 $ 10.8 Interest cost 5.7 5.5 5.8 Expected return on plan assets (2.0 ) (1.9 ) (2.2 ) Amortization of prior service costs 0.3 0.2 0.2 Amortization of actuarial loss 1.4 1.9 1.4 Settlement loss (gain) 0.2 0.1 (2.4 ) Special termination benefits 0.5 0.3 0.1 Net periodic benefit cost $ 16.9 $ 16.5 $ 13.7 |
Schedule of Components of Accumulated Other Comprehensive Income Before Tax Related to Continuing Operations | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Net actuarial loss $ 48.0 $ 56.2 $ 30.8 $ 32.6 Prior service cost 0.1 0.1 3.1 2.9 Total accumulated other comprehensive income recognized in the balance sheet $ 48.1 $ 56.3 $ 33.9 $ 35.5 |
Schedule of Changes in Accumulated Other Comprehensive Income Before Tax from Continuing Operations | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX FROM CONTINUING OPERATIONS FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 56.3 $ 95.9 $ 35.5 $ 32.2 Net actuarial (gain) loss (6.0 ) (33.4 ) 1.6 2.4 Amortization of prior service credit (cost) 0.0 (0.2 ) (0.3 ) (0.2 ) Amortization of actuarial loss (2.2 ) (6.0 ) (1.5 ) (2.0 ) Translation difference — — (1.4 ) 3.1 Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 48.1 $ 56.3 $ 33.9 $ 35.5 |
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets Related to Continuing Operations | PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 U.S. Non-U.S. 2018 2017 2018 2017 Projected Benefit Obligation (PBO) $ 332.1 $ 368.6 $ 143.3 $ 143.6 Accumulated Benefit Obligation (ABO) 314.8 336.9 110.8 112.5 Fair value of plan assets 272.9 297.9 3.9 4.1 |
Schedule of Assumptions Used | ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31 U.S. Non-U.S. 1) % WEIGHTED AVERAGE 2018 2017 2018 2017 Discount rate 4.35 3.55 0.50-3.25 0.25-3.25 Rate of increases in compensation level 2.65 2.65 2.00-5.00 2.00-5.00 ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31 U.S. % WEIGHTED AVERAGE 2018 2017 2016 Discount rate 3.55 4.15 4.50 Rate of increases in compensation level 2.65 2.65 2.65 Expected long-term rate of return on assets 7.08 7.08 7.08 Non-U.S. 1) % WEIGHTED AVERAGE 2018 2017 2016 Discount rate 0.25-3.25 0.50-3.25 0.50-3.60 Rate of increases in compensation level 2.00-5.00 2.00-5.00 2.25-5.00 Expected long-term rate of return on assets 2.25-2.50 1.50-2.50 1.50-3.60 1) |
Schedule of Fair Value of Total Plan Assets Related to Continuing Operations | FAIR VALUE OF TOTAL PLAN ASSETS RELATED TO CONTINUING OPERATIONS FOR YEARS ENDED DECEMBER 31 U.S. U.S. Non-U.S. ASSETS CATEGORY IN % WEIGHTED AVERAGE Target allocation 2018 2017 2018 2017 Equity securities 40 38 56 0 0 Debt instruments 60 62 43 79 79 Other assets — 0 1 21 21 Total 100 100 100 100 100 |
Schedule of Fair Value of Company's Plan Assets | The following table summarizes the fair value of the Company’s U.S. and non-U.S. defined benefit pension plan assets: Fair value measurement at December 31, 2018 Fair value measurement at December 31, 2017 Assets Non-U.S. Bonds Corporate 61.4 66.9 Insurance Contracts 12.6 13.8 Other Investments 4.5 7.4 Assets at fair value Level 2 78.5 88.1 Investments measured at net asset value (NAV): Common collective trusts 272.3 294.6 Total $ 350.8 $ 382.7 |
Schedule of Expected Benefits Payments | PENSION BENEFITS EXPECTED PAYMENTS U.S. Non-U.S. 2019 $ 13 $ 8 2020 $ 14 $ 8 2021 $ 17 $ 9 2022 $ 19 $ 9 2023 $ 20 $ 10 Years 2024-2028 $ 123 $ 63 |
Postretirement Benefits Other Than Pensions | |
Schedule of Changes in Benefit Obligations and Plan Assets Related to Continuing Operations | CHANGES IN BENEFIT OBLIGATION FOR POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 2018 2017 Benefit obligation at beginning of year $ 17.8 $ 15.8 Service cost 0.3 0.3 Interest cost 0.6 0.6 Actuarial (gains) losses (1.2 ) 0.7 Benefits paid (0.3 ) (0.2 ) Other (1.7 ) 0.6 Benefit obligation at end of year $ 15.5 $ 17.8 |
Schedule of Components of Net Periodic Benefit Cost from Continuing Operations | COMPONENTS OF NET PERIODIC BENEFIT COST FROM CONTINUING OPERATIONS ASSOCIATED WITH THE POST RETIREMENT BENEFIT PLANS OTHER THAN PENSIONS PERIOD ENDED DECEMBER 31 2018 2017 2016 Service cost $ 0.3 $ 0.3 $ 0.3 Interest cost 0.6 0.6 0.7 Amortization of prior service cost (2.2 ) (2.2 ) (2.2 ) Amortization of actuarial loss (0.3 ) (0.5 ) — Net periodic benefit (credit) cost $ (1.6 ) $ (1.8 ) $ (1.2 ) |
Schedule of Components of Accumulated Other Comprehensive Income Before Tax Related to Continuing Operations | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX ASSOCIATED WITH POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS RELATED TO CONTINUING OPERATIONS AS OF DECEMBER 31 U.S. 2018 2017 Net actuarial loss (gain) $ (4.6 ) $ (3.7 ) Prior service cost (credit) (8.2 ) (10.6 ) Total accumulated other comprehensive income recognized in the balance sheet $ (12.8 ) $ (14.3 ) |
Schedule of Expected Benefits Payments | The estimated future benefit payments for the postretirement benefits reflect expected future service as appropriate. POSTRETIREMENT BENEFITS EXPECTED PAYMENTS 2019 $ 0.4 2020 $ 0.4 2021 $ 0.5 2022 $ 0.5 2023 $ 0.6 Years 2024–2028 $ 3.5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Amounts Due to and Due from Related Party | Amounts due to and due from related parties as of December 31, 2018 and December 31, 2017 are summarized in the below table: As of Related party (Dollars in millions) December 31, 2018 December 31, 2017 Related party receivables $ 15.0 $ — Related party payables 50.7 Related party accrued expenses 13.0 — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales Attributed to Geographic Areas | NET SALES BY REGION 2018 2017 2016 Asia $ 3,194.9 $ 2,998.1 $ 2,830.2 Whereof: China 1,522.2 1,421.2 1,385.4 Japan 827.9 787.0 718.6 Rest of Asia 844.8 789.9 726.2 Americas 2,735.1 2,435.2 2,548.0 Europe 2,748.2 2,703.5 2,543.4 Total $ 8,678.2 $ 8,136.8 $ 7,921.6 |
Schedule of Net Sales By Product | NET SALES BY PRODUCT 2018 2017 2016 Airbag Products 1) $ 5,698.6 $ 5,343.2 $ 5,256.4 Seatbelt Products 1) 2,979.6 2,793.6 2,665.2 Total net sales $ 8,678.2 $ 8,136.8 $ 7,921.6 |
Schedule of Long-Lived Assets | LONG-LIVED ASSETS 2018 2017 Asia $ 881 $ 975 Whereof: China $ 500 $ 548 Japan $ 135 $ 196 Rest of Asia $ 246 $ 231 Americas $ 1,708 $ 1,572 Europe $ 847 $ 843 Total $ 3,436 $ 3,390 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS under Two-class Method | The computation of basic and diluted EPS under the two-class method were as follows (dollars and shares in millions): 2018 2017 2016 Numerator: Basic and diluted: Net income from continuing operations $ 375.9 $ 586.0 $ 558.4 Net (loss) income from discontinued operations (185.5 ) (158.9 ) 8.7 Net income attributable to controlling interest 190.4 427.1 567.1 Participating share awards with dividend equivalent rights 0.0 0.0 — Net income available to common shareholders 190.4 427.1 567.1 Earnings allocated to participating share awards 1) 0.0 0.0 — Net income attributable to common shareholders $ 190.4 $ 427.1 $ 567.1 Denominator: 1) Basic: Weighted average common stock 87.1 87.5 88.2 Add: Weighted average stock options/share awards 0.2 0.2 0.2 Diluted: 87.3 87.7 88.4 Basic EPS: Continuing operations $ 4.32 $ 6.70 $ 6.33 Discontinued operations (2.13 ) (1.82 ) 0.10 Basic EPS $ 2.19 $ 4.88 $ 6.43 Diluted EPS: Continuing operations $ 4.31 $ 6.68 $ 6.32 Discontinued operations (2.13 ) (1.81 ) 0.10 Diluted EPS $ 2.18 $ 4.87 $ 6.42 1) The Company’s unvested RSUs and PSs, of which some included the right to receive non-forfeitable dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Data | 2018 Q1 Q2 Q3 Q4 Net sales $ 2,240.9 $ 2,211.5 $ 2,033.0 $ 2,192.8 Gross profit 460.3 439.7 386.1 425.2 Income from Continuing Operations before income taxes 228.9 210.1 171.3 2.1 Income from Continuing Operations 159.1 193.2 118.0 (92.8 ) Net income attributable to controlling interest from Continuing Operations 158.7 192.7 117.5 (93.0 ) Earnings per share Continuing Operations – basic 1.82 2.21 1.35 (1.07 ) – diluted 1.82 2.20 1.34 (1.06 ) Dividends paid 0.60 0.62 0.62 0.62 2017 Q1 Q2 Q3 Q4 Net sales $ 2,041.6 $ 1,983.9 $ 1,952.6 $ 2,158.7 Gross profit 428.7 415.3 394.9 440.8 Income from Continuing Operations before income taxes 199.7 201.2 150.7 240.8 Income from Continuing Operations 148.3 136.1 106.2 197.4 Net income attributable to controlling interest from Continuing Operations 147.9 135.7 105.7 196.7 Earnings per share Continuing Operations – basic 1.67 1.54 1.22 2.26 – diluted 1.67 1.54 1.21 2.26 Dividends paid 0.58 0.60 0.60 0.60 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Jun. 30, 2018Segment | Jun. 29, 2018Segment$ / sharesshares | Dec. 31, 2018shares | Dec. 31, 2017shares |
Basis Of Presentation [Line Items] | ||||
Common stock shares outstanding | 87,100,000 | 87,000,000 | ||
Number of reportable segments | Segment | 1 | 2 | ||
Spin-off | ||||
Basis Of Presentation [Line Items] | ||||
Common stock, par value | $ / shares | $ 1 | |||
Common stock shares outstanding | 1 | |||
Spin-off | Veoneer, Inc. | ||||
Basis Of Presentation [Line Items] | ||||
Date of distribution | Jun. 29, 2018 | |||
Common stock issued | 1 | |||
Common stock, par value | $ / shares | $ 1 | |||
Spin-off | Veoneer, Inc. | Swedish Depository Receipt | ||||
Basis Of Presentation [Line Items] | ||||
Stock dividends, shares | 1 | |||
Maximum | ||||
Basis Of Presentation [Line Items] | ||||
Percentage of investments in affiliated companies | 50.00% | |||
Minimum | ||||
Basis Of Presentation [Line Items] | ||||
Percentage of voting right | 50.00% | |||
Percentage of investments in affiliated companies | 20.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Impairments of goodwill | $ 234,200,000 | ||
Net transaction gains (losses) | $ (22,100,000) | (27,000,000) | $ (4,300,000) |
ASU 2018-02 | |||
Significant Accounting Policies [Line Items] | |||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained earnings, Tax effect | 10,000,000 | ||
ASU 2016-02 | |||
Significant Accounting Policies [Line Items] | |||
Operating Lease asset | 165,000,000 | ||
Operating lease liability | 180,000,000 | ||
Continuing Operations | |||
Significant Accounting Policies [Line Items] | |||
Impairments of goodwill | $ 0 | $ 0 | $ 0 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Other intangible assets, useful lives | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Other intangible assets, useful lives | 25 years |
Summary Adoption of New Account
Summary Adoption of New Accounting Standard Impact on Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Assets | |||||||
Inventories, net | $ 757.9 | $ 704.3 | $ 609 | ||||
Other current assets | 1.9 | 2.8 | |||||
Equity | |||||||
Retained Earnings | 2,041.8 | 4,079.2 | |||||
ASU 2014-09 | |||||||
Assets | |||||||
Inventories, net | 757.9 | $ 841.8 | [1] | 859.1 | [1] | ||
Other current assets | 244.6 | 250.9 | [1] | 228.9 | [1] | ||
Equity | |||||||
Retained Earnings | 2,041.8 | 4,082.5 | [1] | $ 4,079.2 | [1] | ||
ASU 2014-09 | Balances without adoption of ASC 606 | |||||||
Assets | |||||||
Inventories, net | 773.6 | ||||||
Other current assets | 225.1 | ||||||
Equity | |||||||
Retained Earnings | 2,039.1 | ||||||
ASU 2014-09 | Effect of Changes | |||||||
Assets | |||||||
Inventories, net | (15.7) | ||||||
Other current assets | 19.5 | ||||||
Equity | |||||||
Retained Earnings | $ 2.7 | ||||||
ASU 2014-09 | Adjustments due to ASU 2014-09 | |||||||
Assets | |||||||
Inventories, net | [1] | (17.3) | |||||
Other current assets | [1] | 22 | |||||
Equity | |||||||
Retained Earnings | [1] | $ 3.3 | |||||
[1] | Impact at adoption which included both continuing and discontinued operations. |
Summary Adoption of New Accou_2
Summary Adoption of New Accounting Standard Impact on Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||
Net sales | $ 2,192.8 | $ 2,033 | $ 2,211.5 | $ 2,240.9 | $ 2,158.7 | $ 1,952.6 | $ 1,983.9 | $ 2,041.6 | $ 8,678.2 | $ 8,136.8 | $ 7,921.6 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | ||||||||
Cost of sales | $ (6,966.9) | $ (6,457.1) | $ (6,293.6) | ||||||||
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | ||||||||
Operating income | $ 686 | $ 859.6 | $ 831 | ||||||||
ASU 2014-09 | |||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||
Net sales | $ 8,678.2 | ||||||||||
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||||||||||
Cost of sales | $ (6,966.9) | ||||||||||
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | ||||||||||
Operating income | $ 686 | ||||||||||
ASU 2014-09 | Balances without adoption of ASC 606 | |||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||
Net sales | $ 8,673.7 | ||||||||||
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||||||||||
Cost of sales | $ (6,963.1) | ||||||||||
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | ||||||||||
Operating income | $ 685.3 | ||||||||||
ASU 2014-09 | Effect of Changes | |||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||
Net sales | $ 4.5 | ||||||||||
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||||||||||
Cost of sales | $ (3.8) | ||||||||||
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | ||||||||||
Operating income | $ 0.7 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | Jun. 29, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Unrecognized losses in accumulated other comprehensive income | [1] | $ 55 | $ 56.2 | $ 80.1 | ||
Veoneer, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net decrease in unfunded status of sponsored pension and postretirement benefits other than pension | $ 22.8 | |||||
Unrecognized losses in accumulated other comprehensive income | $ 6.3 | |||||
Veoneer, Inc. | Amended and Restated Transition Services Agreement | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Services termination date | Mar. 31, 2020 | |||||
Spin-off | Veoneer, Inc. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Spin-off completion date | Jun. 29, 2018 | |||||
Separation costs | $ 84.8 | |||||
Cash | $ 1,000 | $ 5 | ||||
Net assets | 2,129 | $ 2,123 | ||||
Accumulated other comprehensive loss | 13 | |||||
Non-controlling interest | 112 | |||||
Reduction to retained earnings | $ 2,030 | |||||
Spin-off | Veoneer, Inc. | Other Income (Expense), Net | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Separation costs | $ 76.3 | |||||
[1] | The components of Other Comprehensive Income (Loss) are net of any related income tax effects. |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Results of Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | $ 2,152 | ||
Cost of sales | (1,723) | ||
Gross profit | 429 | ||
Selling, general and administrative expenses | (81.7) | ||
Research, development and engineering expenses, net | (293.7) | ||
Amortization of intangibles | (33.2) | ||
Other income (expense), net | (3.7) | ||
Operating loss | 16.7 | ||
Interest expense | (0.2) | ||
Other non-operating items, net | 3.1 | ||
Loss before income taxes | 19.6 | ||
Income tax (expense) benefit | (17.9) | ||
Loss from discontinued operations, net of income taxes | $ (193.8) | $ (285) | 1.7 |
Less: Net loss attributable to non-controlling interest | (8.3) | (126.1) | (7) |
Net loss from discontinued operations | (185.5) | (158.9) | $ 8.7 |
Spin-off | Veoneer, Inc. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 1,122.9 | 2,245.8 | |
Cost of sales | (896.4) | (1,776.5) | |
Gross profit | 226.5 | 469.3 | |
Selling, general and administrative expenses | (59.7) | (83.1) | |
Research, development and engineering expenses, net | (224) | (370.3) | |
Goodwill, Impairment charge | (234.2) | ||
Amortization of intangibles | (10.5) | (35.8) | |
Other income (expense), net | (53.4) | (0.2) | |
Operating loss | (121.1) | (254.3) | |
Loss from equity method investments | (29.9) | (30.7) | |
Interest income | 0.7 | ||
Interest expense | (0.4) | (0.1) | |
Other non-operating items, net | 0.5 | (0.8) | |
Loss before income taxes | (150.2) | (285.9) | |
Income tax (expense) benefit | (43.6) | 0.9 | |
Loss from discontinued operations, net of income taxes | (193.8) | (285) | |
Less: Net loss attributable to non-controlling interest | (8.3) | (126.1) | |
Net loss from discontinued operations | $ (185.5) | $ (158.9) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Carrying Value of Assets and Liabilities Reclassified as Assets and Liabilities of Discontinued Operations (Detail) $ in Millions | Dec. 31, 2017USD ($) |
ASSETS | |
Total current assets, discontinued operations | $ 647.2 |
Total non-current assets, discontinued operations | 955.7 |
LIABILITIES | |
Total current liabilities, discontinued operations | 568.2 |
Total non-current liabilities, discontinued operations | 64.1 |
Spin-off | Veoneer, Inc. | |
ASSETS | |
Receivables, net | 460.5 |
Inventories, net | 154.8 |
Other current assets | 31.9 |
Total current assets, discontinued operations | 647.2 |
Property, plant and equipment, net | 364.2 |
Investments and other non-current assets | 177.5 |
Goodwill | 291.8 |
Intangible assets, net | 122.2 |
Total non-current assets, discontinued operations | 955.7 |
LIABILITIES | |
Accounts payable | 323.5 |
Accrued expenses | 199.1 |
Other current liabilities | 45.6 |
Total current liabilities, discontinued operations | 568.2 |
Long-term debt | 11 |
Pension liability | 19.1 |
Other non-current liabilities | 34 |
Total non-current liabilities, discontinued operations | $ 64.1 |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Significant Non-Cash Items of Discontinued Operations (Detail) - Spin-off - Veoneer, Inc. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation | $ 44.8 | $ 82.9 | $ 69.7 |
Amortization of intangible assets | 10.5 | 35.8 | 33.2 |
Capital expenditures | 71.1 | 109.6 | 100.9 |
Acquisition in affiliate, net | 71 | 123.9 | $ 227.4 |
Undistributed loss from equity method investment | 29.9 | 30.7 | |
M/A-COM | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Earn-out adjustment | $ (14) | $ (12.7) |
Revenue from Continuing Operati
Revenue from Continuing Operations Disaggregated by Primary Regions and Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | $ 2,192.8 | $ 2,033 | $ 2,211.5 | $ 2,240.9 | $ 2,158.7 | $ 1,952.6 | $ 1,983.9 | $ 2,041.6 | $ 8,678.2 | $ 8,136.8 | $ 7,921.6 | |
Airbag Products and Other | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | [1] | 5,698.6 | 5,343.2 | 5,256.4 | ||||||||
Seatbelt Products | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | [1] | 2,979.6 | 2,793.6 | 2,665.2 | ||||||||
China | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | 1,522.2 | 1,421.2 | 1,385.4 | |||||||||
Japan | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | 827.9 | 787 | 718.6 | |||||||||
Rest of Asia | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | 844.8 | 789.9 | 726.2 | |||||||||
Americas | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | 2,735.1 | 2,435.2 | 2,548 | |||||||||
Europe | ||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||
Net sales | $ 2,748.2 | $ 2,703.5 | $ 2,543.4 | |||||||||
[1] | Including Corporate and other sales. |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Impairment losses recognized related to contract assets | $ 0 |
Summary of Information about Co
Summary of Information about Contract Balance with Customers (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Contract With Customer Asset And Liability [Abstract] | ||||
Receivables, net | $ 1,652.1 | $ 1,696.7 | $ 1,515.1 | |
Contract assets | [1] | 19.5 | ||
Contract liabilities | [2] | $ 29.4 | $ 33 | |
[1] | Included in other current assets. | |||
[2] | Included in other current and other non-current liabilities. |
Summary of Information about Re
Summary of Information about Receivables, Net of Allowance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Contract With Customer Asset And Liability [Abstract] | |||
Receivables | $ 1,659.4 | $ 1,703 | $ 1,519.3 |
Allowance at beginning of period | (6.3) | (4.2) | (3.9) |
Net decrease/(increase) of allowance | (1.3) | (1.8) | |
Translation difference | 0.3 | (0.3) | 0.2 |
Allowance at end of period | (7.3) | (6.3) | (4.2) |
Receivables, net of allowance | $ 1,652.1 | $ 1,696.7 | $ 1,515.1 |
Summary of Changes in Contract
Summary of Changes in Contract Assets and Contract Liabilities (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Contract assets | ||
Increases/(decreases) due to cumulative catch up adjustment | $ 15 | |
Increases/(decreases) due to revenue recognized | 75.6 | |
Increases/(decreases) due to transfer to receivables | (71.1) | |
Ending balance | 19.5 | [1] |
Contract liabilities | ||
Beginning balance | 33 | [2] |
Increases/(decreases) due to revenue recognized | (7.4) | |
Translation difference | 3.8 | |
Ending balance | $ 29.4 | [2] |
[1] | Included in other current assets. | |
[2] | Included in other current and other non-current liabilities. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) € in Millions | Jun. 26, 2018 | Jun. 18, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Notes issued | Jun. 26, 2018 | |||||
Notes issued price percentage | 99.527% | |||||
Notes stated percentage | 0.75% | |||||
Notes effective percentage | 0.847% | |||||
Eurobond | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Bond offering date | Jun. 18, 2018 | |||||
Bond term of period | 5 years | |||||
Bond price | € | € 500 | |||||
Notes stated percentage | 0.75% | |||||
Designated as Hedging Instrument | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Derivatives designated as hedging instruments | $ 0 | $ 0 | ||||
Not Designated as Hedging Instrument | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Gains and losses recognized in other non-operating items, net | $ (1,500,000) | $ 1,200,000 | $ 1,300,000 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Not Designated as Hedging Instrument - Fair Value, Measurements, Recurring - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | ||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | $ 659,100,000 | $ 468,200,000 | ||
Less Than Six Months | Foreign Exchange Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | 659,100,000 | [1] | 468,200,000 | [2] |
Other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset | 1,900,000 | 2,400,000 | ||
Other current assets | Less Than Six Months | Foreign Exchange Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset | 1,900,000 | [3] | 2,400,000 | [4] |
Other current liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | 1,100,000 | 300,000 | ||
Other current liabilities | Less Than Six Months | Foreign Exchange Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | $ 1,100,000 | [5] | $ 300,000 | [6] |
[1] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $659.1 million. | |||
[2] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $468.2 million. | |||
[3] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.9 million. | |||
[4] | Net amount after deducting for offsetting swaps under ISDA agreements is $2.4 million. | |||
[5] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.1 million. | |||
[6] | Net amount after deducting for offsetting swaps under ISDA agreements is $0.3 million. |
Financial Assets and Liabilit_2
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Not Designated as Hedging Instrument - Foreign Exchange Swaps - Fair Value, Measurements, Recurring - Less Than Six Months - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative notional volume, amount after offsetting swaps | $ 659.1 | $ 468.2 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, amount after offsetting swaps | 1.9 | 2.4 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, amount after offsetting swaps | $ 1.1 | $ 0.3 |
Fair Value of Debt (Detail)
Fair Value of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 1,609 | $ 1,310.7 |
Short-term debt | [1] | 620.7 | 19.7 |
Long-term debt, fair value | 1,628.9 | 1,380.1 | |
Short-term debt, fair value | 623 | 19.7 | |
Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 342.6 | |
Short-term debt, fair value | 342.6 | ||
U.S. Private Placement - Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 1,041 | 1,310.5 |
Long-term debt, fair value | 1,061.1 | 1,379.9 | |
Eurobond - Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 568 | |
Long-term debt, fair value | 567.8 | ||
Other Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 0.2 | |
Long-term debt, fair value | 0.2 | ||
Overdrafts and Other Short-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 10 | 19.5 |
Short-term debt, fair value | 10 | 19.5 | |
Short-Term Portion of Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 268.1 | 0.2 |
Short-term debt, fair value | $ 270.4 | $ 0.2 | |
[1] | Debt as reported in balance sheet. |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 47 | $ 89 | $ 172 | ||||||||
Non-U.S. | 565.4 | 703.4 | 612.2 | ||||||||
Income from continuing operations before income taxes | $ 2.1 | $ 171.3 | $ 210.1 | $ 228.9 | $ 240.8 | $ 150.7 | $ 201.2 | $ 199.7 | $ 612.4 | $ 792.4 | $ 784.2 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current U.S. federal | $ 31.6 | $ 53.4 | $ 79.2 |
Current Non-U.S. | 192.7 | 162.8 | 167.6 |
Current U.S. state and local | 10.1 | 9.9 | 3.5 |
Deferred U.S. federal | 0.8 | 21.8 | (15.8) |
Deferred Non-U.S. | (0.2) | (44.4) | (9.7) |
Deferred U.S. state and local | (0.1) | 0.9 | (0.5) |
Total income tax expense | $ 234.9 | $ 204.4 | $ 224.3 |
Effective Income Tax Rate (Deta
Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
Foreign tax rate variances | 5.50% | (7.40%) | (6.40%) |
Tax credits | (3.90%) | (3.30%) | (2.80%) |
Change in Valuation Allowances | (3.20%) | (4.80%) | 1.30% |
Current year losses with no benefit | 0.50% | 0.30% | 1.20% |
Net operating loss carry-forwards | (0.10%) | (3.70%) | (3.40%) |
Changes in tax reserves | 3.40% | 0.80% | 0.50% |
U.S. Expense Allocation | 0.00% | 2.00% | 2.00% |
Earnings of equity investments | (0.10%) | (0.10%) | (0.10%) |
Withholding taxes | 3.50% | 2.10% | 2.50% |
State taxes, net of federal benefit | 1.10% | 0.30% | 0.20% |
Antitrust settlement | 9.90% | ||
U.S. GILTI Tax | 1.70% | ||
Change in U.S. tax rate | 3.00% | ||
Deemed mandatory repatriation | 3.10% | ||
Other, net | (0.90%) | (1.50%) | (1.40%) |
Effective income tax rate | 38.40% | 25.80% | 28.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
U.S. federal income tax rate | 21.00% | 35.00% | 35.00% | |
Tax cuts and jobs act of 2017 incomplete accounting transition tax for accumulated foreign earnings provisional income tax expense (benefit) | $ 24 | $ 24 | ||
Impact of GILTI on effective tax rate | (1.70%) | |||
Net operating loss carry-forwards | 283 | $ 283 | ||
Net operating loss carry-forwards with have no expiration date | 266 | $ 266 | ||
Net Operating loss carry-forwards, expiration date | 2,029 | |||
Tax credit carry-forwards | 9 | $ 9 | ||
Tax credit carry-forwards, expiration date | 2,026 | |||
Tax benefit due to reversal of valuation allowance | $ 37 | |||
Effective income tax rate | 38.40% | 25.80% | 28.60% | |
Unrecognized tax benefits related to prior years | $ 34.6 | |||
Unrecognized accrued interest and penalties | 6.6 | $ 6.6 | $ 6.3 | |
Net increase to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years | 4.2 | |||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 54.4 | 54.4 | ||
Current Tax Payable Part of Other Current Liabilities | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 4 | 4 | ||
Non-Current Tax Payable Part of Other Non-current Liabilities | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 50.4 | $ 50.4 | ||
Minimum | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 20.00% | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 30.00% | |||
Non-US Foreign Tax Credit Carryforwards | ||||
Income Taxes [Line Items] | ||||
Tax credit carry-forwards | $ 7 | $ 7 | ||
Tax credit carry-forwards, expiration date | 2,022 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at beginning of year | $ 29.6 | $ 27.2 | $ 25.2 |
Increases as a result of tax positions taken during a prior period | 24 | 2 | 4.5 |
Decreases as a result of tax positions taken during a prior period | (0.2) | ||
Increases as a result of tax positions taken during the current period | 4.7 | 6.8 | 5.8 |
Decreases as a result of tax positions taken during the current period | (3.1) | (1.7) | |
Decreases relating to settlements with taxing authorities | (3.2) | (7.1) | (1.3) |
Decreases resulting from the lapse of the applicable statute of limitations | (1.5) | (0.3) | (3.5) |
Translation Difference | (0.9) | 1 | (1.6) |
Total unrecognized tax benefits at end of year | $ 49.6 | $ 29.6 | $ 27.2 |
Deferred Taxes (Detail)
Deferred Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Provisions | $ 104.9 | $ 107.3 | $ 101.5 | |
Costs capitalized for tax | 18.2 | 18.6 | 16.8 | |
Property, plant and equipment | 13 | 14.2 | 18.2 | |
Retirement Plans | 50.1 | 50 | 65.5 | |
Tax receivables, principally NOL’s | 113.9 | 150.2 | 211.7 | |
Deferred tax assets before allowances | 300.1 | 340.3 | 413.7 | |
Valuation allowances | (71) | (110.6) | (199.6) | $ (177.7) |
Total | 229.1 | 229.7 | 214.1 | |
Acquired intangibles | (6.1) | (6.6) | (12.3) | |
Statutory tax allowances | (0.5) | |||
Distribution taxes | (22.9) | (22.8) | (16) | |
Other | (10.1) | (3.9) | (4.9) | |
Total | (39.6) | (33.3) | (33.2) | |
Net deferred tax asset | $ 189.5 | $ 196.4 | $ 180.9 |
Valuation Allowance Against Def
Valuation Allowance Against Deferred Tax Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Allowances at beginning of year | $ 110.6 | $ 199.6 | $ 177.7 |
Benefits reserved current year | 6.4 | 22.9 | 32.3 |
Benefits recognized current year | (36.9) | (117) | (13.8) |
Write-offs and other changes | (0.1) | (0.5) | |
Translation difference | (9.1) | 5.2 | 3.9 |
Allowances at end of year | $ 71 | $ 110.6 | $ 199.6 |
Receivables (Detail)
Receivables (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Receivables | $ 1,659.4 | $ 1,703 | $ 1,519.3 |
Allowance at beginning of period | (6.3) | (4.2) | (3.9) |
Reversal of allowance | 0.9 | 0.9 | 0.5 |
Addition to allowance | (3.8) | (3.9) | (1.5) |
Write-off against allowance | 1.6 | 1.2 | 0.5 |
Translation difference | 0.3 | (0.3) | 0.2 |
Allowance at end of period | (7.3) | (6.3) | (4.2) |
Receivables, net of allowance | $ 1,652.1 | $ 1,696.7 | $ 1,515.1 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Raw material | $ 370.9 | $ 333.2 | $ 286.4 |
Work in progress | 277.4 | 263.8 | 233.1 |
Finished products | 194.7 | 187.9 | 166.2 |
Inventories | 843 | 784.9 | 685.7 |
Inventory reserve at beginning of year | (80.6) | (76.7) | (68.2) |
Reversal of reserve | 1.4 | 4.8 | 2.9 |
Addition to reserve | (13.9) | (7.3) | (16.2) |
Write-off against reserve | 5.3 | 5.2 | 3 |
Translation difference | 2.7 | (6.6) | 1.8 |
Inventory reserve at end of year | (85.1) | (80.6) | (76.7) |
Total inventories, net of reserve | $ 757.9 | $ 704.3 | $ 609 |
Investments and Other Non-Cur_3
Investments and Other Non-Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments and Other Non-current Assets | ||
Equity method investments | $ 12.5 | $ 12.9 |
Deferred tax assets | 235.6 | 248.9 |
Income tax receivables | 33.6 | 30.4 |
Other non-current assets | 41.8 | 48.8 |
Investments and other non-current assets | $ 323.5 | $ 341 |
Investments and Other Non-Cur_4
Investments and Other Non-Current Assets - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Investment | |
Schedule of Equity Method Investments [Line Items] | |
Number of equity method investments in companies | 1 |
Malaysia | Autoliv-Hirotako Safety Sdn Bhd (Parent And Subsidiaries) | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership | 49.00% |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Land and land improvements | $ 114.7 | $ 113.4 |
Machinery and equipment | 3,496.8 | 3,276.1 |
Buildings | 822.9 | 816.2 |
Construction in progress | 374.3 | 370.6 |
Property, plant and equipment | 4,808.7 | 4,576.3 |
Less accumulated depreciation | (3,118.6) | (2,967.4) |
Net of depreciation | $ 1,690.1 | $ 1,608.9 |
Land and Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Machinery and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Machinery and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Buildings | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Buildings | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years |
Depreciation Included in Proper
Depreciation Included in Property Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 330.7 | $ 295.9 | $ 269.6 |
Cost of Sales | |||
Property Plant And Equipment [Line Items] | |||
Depreciation | 300.9 | 268.9 | 248.3 |
Selling, General and Administrative Expenses | |||
Property Plant And Equipment [Line Items] | |||
Depreciation | 13.9 | 12.5 | 8.6 |
Research, Development and Engineering Expenses, net | |||
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 15.9 | $ 14.5 | $ 12.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Asset impairment charges | $ 0 | $ 0 | $ 0 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Carrying amount at beginning of year | $ 1,397 | $ 1,380.6 |
Translation differences | (7.1) | 16.4 |
Carrying amount at end of year | $ 1,389.9 | $ 1,397 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 1,389,900,000 | $ 1,397,000,000 | $ 1,380,600,000 |
Goodwill impairment charge | 234,200,000 | ||
Amortization expense on intangible assets | 11,300,000 | 11,200,000 | 10,500,000 |
2,019 | 11,600,000 | ||
2,020 | 10,200,000 | ||
2,021 | 9,100,000 | ||
2,022 | 1,200,000 | ||
2,023 | 600,000 | ||
Continuing Operations | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill impairment charge | 0 | $ 0 | $ 0 |
1997 Merger of Autoliv AB and Automotive Safety Products Division of Morton International, Inc. | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 1,200,000,000 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangibles (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortizable intangibles, Gross carrying amount | $ 391.6 | $ 355 |
Amortizable intangibles, Accumulated amortization | (358.9) | (312.4) |
Amortizable intangibles, Carrying value | $ 32.7 | $ 42.6 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring reserve balance | $ 33.4 | $ 39.6 | $ 35.8 | $ 87.1 |
Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Aggregate cost for restructuring initiatives | 11 | |||
Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Aggregate cost for restructuring initiatives | 31 | |||
Western Europe Restructuring Activities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Aggregate cost for restructuring initiatives | 109 | |||
Remaining restructuring liability | $ 27 |
Schedule of Changes in Balance
Schedule of Changes in Balance Sheet Position of Restructuring Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | $ 39.6 | $ 35.8 | $ 87.1 |
Provision/ Charge | 9.2 | 29.5 | 23.7 |
Provision/ Reversal | (0.1) | (6.9) | (2.6) |
Cash payments | (13.6) | (23.3) | (71.3) |
Translation difference | (1.7) | 4.5 | (1.1) |
Restructuring reserve, ending balance | 33.4 | 39.6 | 35.8 |
Restructuring employee-related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 39.4 | 35.7 | 86.9 |
Provision/ Charge | 9 | 29.3 | 23.6 |
Provision/ Reversal | (0.1) | (6.9) | (2.6) |
Cash payments | (13.6) | (23.3) | (71.3) |
Translation difference | (1.5) | 4.6 | (0.9) |
Restructuring reserve, ending balance | 33.2 | 39.4 | 35.7 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0.2 | 0.1 | 0.2 |
Provision/ Charge | 0.2 | 0.2 | 0.1 |
Translation difference | (0.2) | (0.1) | (0.2) |
Restructuring reserve, ending balance | $ 0.2 | $ 0.2 | $ 0.1 |
Product-Related Liabilities - A
Product-Related Liabilities - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Accrued Expenses | |
Product Warranty Liability [Line Items] | |
Indemnification liabilities | $ 12 |
Summary of Change in Balance Sh
Summary of Change in Balance Sheet Position of Product-Related Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |||
Reserve at beginning of the year | $ 95.6 | $ 90.6 | $ 39 |
Change in reserve | 20.6 | 32.2 | 68.1 |
Cash payments | (54.3) | (29.4) | (15.6) |
Translation difference | 0.3 | 2.2 | (0.9) |
Reserve at end of the year | $ 62.2 | $ 95.6 | $ 90.6 |
Debt and Credit Agreements - Ad
Debt and Credit Agreements - Additional Information (Detail) € in Millions, kr in Billions | Jun. 18, 2018EUR (€) | Jul. 31, 2016USD ($)BankOption | Dec. 31, 2018USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2018SEK (kr) | Jun. 30, 2018 | Jun. 26, 2018 | Dec. 31, 2017USD ($) | |
Line Of Credit Facility [Line Items] | |||||||||
Short-term debt | [1] | $ 620,700,000 | $ 19,700,000 | ||||||
Short-term debt excluding commercial paper | 381,000,000 | ||||||||
Short-term debt excluding commercial paper, utilized amount | $ 10,000,000 | ||||||||
Weighted average interest rate on short-term debt | 1.40% | 1.40% | 2.00% | ||||||
Long-term debt | [1] | $ 1,609,000,000 | $ 1,310,700,000 | ||||||
Notes stated percentage | 0.75% | ||||||||
Money market funds | 1,000,000 | ||||||||
Banks Rated A- or Above | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Calculated risk amount | 150,000,000 | ||||||||
Banks Rated BBB+ | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Calculated risk amount | 50,000,000 | ||||||||
Swedish Program | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Commercial paper | 780,000,000 | kr 7 | |||||||
United States Program | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Long term debt issued | 343,000,000 | ||||||||
Commercial paper | 1,000,000,000 | ||||||||
Swedish Program and U.S. Program | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Long term debt issued | $ 343,000,000 | ||||||||
Senior Unsecured Revolving Credit Facility Agreement | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Revolving credit facility amount | $ 1,100,000,000 | ||||||||
Line of credit facility term | 5 years | ||||||||
Number of options to request banks for extension of debt instruments maturity | Option | 2 | ||||||||
Extended maturity | Jul. 31, 2023 | ||||||||
Percentage of commitment fee as compared to applicable margin rate | 35.00% | ||||||||
Senior Unsecured Revolving Credit Facility Agreement | Syndicated by Banks | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Number of banks syndicated on revolving credit facility | Bank | 14 | ||||||||
Senior Unsecured Revolving Credit Facility Agreement | Syndicated by Banks | Banks Rated A- or Above | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Line of credit facility commitment fee percent | 0.225% | ||||||||
Eurobond - Long-Term Debt | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Long-term debt | [1] | $ 568,000,000 | |||||||
Bond term of period | 5 years | ||||||||
Long term debt issued | € | € 500 | ||||||||
Notes stated percentage | 0.75% | ||||||||
Commercial Paper | Maximum | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Money market funds | 2,000,000,000 | ||||||||
US Private Placement Loans Maturing in April 2019 | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Short-term debt | 208,000,000 | ||||||||
US Private Placement Loans Maturing in November 2019 | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Short-term debt | 60,000,000 | ||||||||
Commercial Paper Loans Maturing in Q1 and Q2 2019 | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Short-term debt | $ 343,000,000 | ||||||||
Senior Notes Seven Year | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Bond term of period | 7 years | ||||||||
Long term debt issued | $ 275,000,000 | ||||||||
Notes stated percentage | 3.51% | ||||||||
Senior Notes Ten Year | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Bond term of period | 10 years | ||||||||
Long term debt issued | $ 297,000,000 | ||||||||
Notes stated percentage | 4.09% | ||||||||
Senior Notes Twelve Year | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Bond term of period | 12 years | ||||||||
Long term debt issued | $ 285,000,000 | ||||||||
Notes stated percentage | 4.24% | ||||||||
Senior Notes Fifteen Year | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Bond term of period | 15 years | ||||||||
Long term debt issued | $ 185,000,000 | ||||||||
Notes stated percentage | 4.44% | ||||||||
[1] | Debt as reported in balance sheet. |
Debt Profile (Detail)
Debt Profile (Detail) $ in Millions | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||
2,019 | $ 620.7 | |
2,021 | 275 | |
2,023 | 572.7 | |
Thereafter | 767 | |
Total long-term | 1,614.7 | |
Total | 2,235.4 | [1] |
Eurobond | ||
Debt Instrument [Line Items] | ||
2,023 | 572.7 | |
Total long-term | 572.7 | |
Total | 572.7 | |
Commercial Papers | ||
Debt Instrument [Line Items] | ||
2,019 | 342.6 | |
Total | 342.6 | |
U.S. Private Placement Notes | ||
Debt Instrument [Line Items] | ||
2,019 | 268 | |
2,021 | 275 | |
Thereafter | 767 | |
Total long-term | 1,042 | |
Total | 1,310 | |
Other Short-term Debt. | ||
Debt Instrument [Line Items] | ||
2,019 | 10.1 | |
Total | $ 10.1 | |
[1] | The difference between reported total debt and total principal amount is mainly related to capitalized debt issuance costs. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | 224 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2014 | Dec. 31, 2000 | |
Shareholders' Equity [Line Items] | |||||||
Number of shares outstanding | 87,144,520 | 87,144,520 | |||||
Maximum number of shares that may yet be purchased | 2,986,288 | 2,986,288 | |||||
Stock repurchase program, number of shares authorized to be repurchased | 47,500,000 | 10,000,000 | |||||
Shares repurchased | 0 | 1,400,000 | |||||
Aggregate number of shares repurchased | 44,500,000 | ||||||
Aggregate value of shares repurchased | $ 2,498 | ||||||
Repurchased shares remain in treasury stock | 15,700,000 | 15,800,000 | 15,700,000 | ||||
Equity Offering | |||||||
Shareholders' Equity [Line Items] | |||||||
Common shares sold from treasury stock | 23,600,000 | ||||||
Stock Incentive Plan | |||||||
Shareholders' Equity [Line Items] | |||||||
Common shares sold from treasury stock | 200,000 | 200,000 | 100,000 | 5,300,000 |
Schedule of Dividends Paid (Det
Schedule of Dividends Paid (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||||||||||
Cash dividend paid per share | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.58 | $ 2.46 | $ 2.38 | $ 2.30 |
Cash dividend declared per share | $ 2.48 | $ 2.40 | $ 2.32 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Equity [Abstract] | ||||
Cumulative translation adjustments | [1] | $ (381.2) | $ (230.5) | $ (493.5) |
Net (loss) gain of cash flow hedge derivatives | [1] | (0.8) | 8.1 | |
Net pension liability | [1] | (55) | (56.2) | (80.1) |
Distribution to Veoneer | [1] | 13 | ||
Total (ending balance) | [1] | (423.2) | (287.5) | (565.5) |
Deferred taxes on the pension liability | [1] | $ 15.4 | $ 16.5 | $ 35.3 |
[1] | The components of Other Comprehensive Income (Loss) are net of any related income tax effects. |
Share Repurchase Program (Detai
Share Repurchase Program (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Shares repurchased | 0 | 1,400,000 |
Cash paid for shares | $ 157 |
Schedule of Payments for Intere
Schedule of Payments for Interest and Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest | $ 66 | $ 64 | $ 64 |
Income taxes | $ 214 | $ 204 | $ 247 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - USD ($) | Jun. 29, 2018 | Feb. 13, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average period over which cost is expected to be recognized | 1 year 8 months 12 days | |||||
Unrecognized compensation costs associated with stock options | $ 0 | |||||
Restricted Stock Units (RSUs) | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total compensation cost related to non-vested awards | 10,300,000 | |||||
Aggregate intrinsic value | 18,400,000 | |||||
Restricted Stock Units (RSUs) | Non-employee Directors | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date fair value | $ 1,400,000 | |||||
Percentage of awards granted | 50.00% | |||||
Number of common shares that have been issued for awards | 7,869 | |||||
Restricted Stock Units (RSUs) | LTI Program | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date fair value | $ 16,600,000 | |||||
Stock Incentive Plan | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum common shares that may be issued for awards | 9,585,055 | |||||
Number of common shares that have been issued for awards | 6,394,392 | |||||
Stock Incentive Plan | Non-employee Directors | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common shares that have been issued for awards | 37,103 | |||||
Stock Options | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation, grant expiration term | 10 years | |||||
Employment requisite period following grant date | 1 year | |||||
Closing price per share | $ 70.23 | |||||
Aggregate intrinsic value for stock options outstanding | $ 10,000,000 | |||||
Aggregate intrinsic value for stock options exercisable | 10,000,000 | |||||
Restricted Stock Units And Performance Shares | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total stock compensation cost | $ 9,100,000 | $ 6,100,000 | $ 8,400,000 | |||
Spin-off | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion of stock description | The conversion that occurred on the Distribution Date was based on the following: SOs - A number of SOs comprising 50% of the value of the outstanding SOs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of SOs comprising the remaining 50% percent of the pre spin-off value were replaced with options to acquire shares of Veoneer common stock. RSUs - A number of RSUs comprising 50% of the value of the outstanding RSUs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of RSUs comprising the remaining 50% of the pre spin-off value were replaced with RSUs with underlying Veoneer common stock. PSs - Outstanding PSs pre spin-off were converted to time-based RSUs and were divided between Autoliv and Veoneer common stock in the same manner as other outstanding RSUs (as described above) on the Distribution Date. The number of outstanding PSs pre spin-off to be converted was determined based on pro-ration of the performance period such as: The level of actual achievement of performance goals for each outstanding PS for the period between the first day of the performance period and December 31, 2017 (the “Performance Measurement Date”), referred to as “Level of Performance-to-Date”; and The greater of the Level of Performance-to-Date and the target performance level for the period between the Performance Measurement Date and the last day of the performance period. In each case above, the conversion was intended to generally preserve the intrinsic value of the original award determined as of the Distribution Date. The number of converted RSUs and SOs for Autoliv and Veoneer was based on the average of Autoliv closing stock prices for the last 5 trading days prior to the spin-off and the average of closing stock prices of Autoliv and Veoneer, respectively, for the first 5 trading days after the spin-off. Accordingly, 50% of the outstanding awards as of the Distribution Date, and the related exercise price, were converted to Adjusted Autoliv Awards using a conversion factor of 1.41. | |||||
Percentage of outstanding awards as of distribution date | 50.00% | |||||
Spin-off | Veoneer, Inc. | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion ratio | 1.41 | |||||
Spin-off | Common stock | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of stock option continue to be applicable to the entity | 50.00% | |||||
Percentage of RSUs prior to spinoff continue to applicable to the entity | 50.00% | |||||
Spin-off | Common stock | Veoneer, Inc. | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of stock option and replaced with stock option of the spun entity | 50.00% | |||||
Percentage of RSUs prior to spinoff and replaced with RSUs of the spun entity | 50.00% |
Schedule of Number Restricted S
Schedule of Number Restricted Stock Units and Performance Shares (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Restricted Stock Units (RSUs) | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value at grant date | [1] | $ 131.51 | $ 105.64 | $ 100.77 | ||
Outstanding at beginning of year | 188,410 | [2] | 188,494 | [2] | 204,552 | |
Granted | 131,246 | 84,771 | 71,870 | |||
Shares issued | (84,425) | (70,795) | (66,651) | |||
Cancelled/Forfeited/Expired | (6,485) | (14,060) | (21,277) | |||
Spin conversion | [3] | (33,328) | ||||
Outstanding at end of year | [2] | 262,074 | 188,410 | 188,494 | ||
Performance Shares | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value at grant date | [1] | $ 105.87 | $ 105.87 | $ 98.57 | ||
Outstanding at beginning of year | [4] | 139,891 | 138,548 | |||
Change in performance conditions | (69,274) | |||||
Granted | [5] | 588 | 75,379 | 143,740 | ||
Cancelled/Forfeited/Expired | (3,076) | (4,762) | (5,192) | |||
Spin conversion | [6] | (137,403) | ||||
Outstanding at end of year | [4] | 139,891 | 138,548 | |||
[1] | Weighted average fair value at grant date pre-spin. | |||||
[2] | Outstanding at the end of 2018 reflects the RSUs held by employees of Autoliv and Veoneer, in accordance with the conversion factor described above. Outstanding at the end of 2017 and 2016, respectively reflects RSUs held by employees of Autoliv. The corresponding weighted average grant date fair value after applying the conversion factor is $100.74 as of December 31, 2018. | |||||
[3] | Reflects the impact of the cancellation of PS awards outstanding as of the Distribution Date, and the conversion to RSUs in accordance with the conversion factor described above. | |||||
[4] | Outstanding at the end of 2017 and 2016, respectively reflects PSs held by employees of Autoliv. | |||||
[5] | 2018 grants reflect awards issued pre-spin as a result of dividend equivalent rights. | |||||
[6] | Reflects the replacement of awards due to the spin-off. Outstanding PS awards were converted to RSU awards in accordance with the conversion factor described above. |
Schedule of Number Restricted_2
Schedule of Number Restricted Stock Units and Performance Shares (Parenthetical) (Detail) | Dec. 31, 2018ConversionFactor |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted average grant date fair value after applying the conversion factor | 100.74 |
Schedule of Number of Stock Opt
Schedule of Number of Stock Options (Detail) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||
Number of options, Outstanding beginning balance | 299,949 | 411,109 | 473,051 | ||
Exercised | (92,485) | (100,184) | (51,084) | ||
Cancelled/Forfeited/Expired | (10,976) | (10,858) | |||
Spin conversion | [1] | (65,390) | |||
Number of options, Outstanding ending balance | 142,074 | [2] | 299,949 | 411,109 | |
Weighted average exercise price, Outstanding beginning balance | $ 89.20 | $ 87.47 | $ 87.88 | ||
Exercised | 86.59 | 79.58 | 88.10 | ||
Cancelled/Forfeited/Expired | 112.20 | 102.31 | |||
Spin conversion | [1] | 88.75 | |||
Weighted average exercise price, Outstanding ending balance | $ 63.43 | [2] | $ 89.20 | $ 87.47 | |
[1] | Reflects the cancellation of SOs outstanding as of the Distribution Date, and the conversion to new awards in accordance with the conversion factor described above. The weighted average exercise price reflects the exercise price of the shares cancelled due to the spin-off. | ||||
[2] | Reflects outstanding SOs held by employees of Autoliv and Veoneer at the end of the year and the weighted average exercise price, in accordance with the conversion factor described above. |
Schedule of Options Exercisable
Schedule of Options Exercisable (Detail) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options exercisable, shares | 142,074 | 299,949 | 254,842 |
Weighted average exercise price | $ 63.43 | $ 89.20 | $ 71.48 |
Summary of Stock Options Outsta
Summary of Stock Options Outstanding and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number outstanding | shares | 142,074 |
Remaining contract life in years, Outstanding options | 4 years 7 months 20 days |
Number outstanding, Weighted average exercise price | $ 63.43 |
Number exercisable | shares | 142,074 |
Remaining contract life in years, Excercisable options | 4 years 7 months 20 days |
Number excercisable, Weighted average exercise price | $ 63.43 |
$ 11.57 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 11.57 |
Number outstanding | shares | 5,885 |
Remaining contract life in years, Outstanding options | 1 month 20 days |
Number outstanding, Weighted average exercise price | $ 11.57 |
Number exercisable | shares | 5,885 |
Remaining contract life in years, Excercisable options | 1 month 20 days |
Number excercisable, Weighted average exercise price | $ 11.57 |
$ 31.71 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 31.71 |
Number outstanding | shares | 7,047 |
Remaining contract life in years, Outstanding options | 1 year 1 month 17 days |
Number outstanding, Weighted average exercise price | $ 31.71 |
Number exercisable | shares | 7,047 |
Remaining contract life in years, Excercisable options | 1 year 1 month 17 days |
Number excercisable, Weighted average exercise price | $ 31.71 |
$47.52– $49.07 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range, lower range Limit | 47.52 |
Shares authorized under stock option plans, exercise price range, upper range limit | $ 49.07 |
Number outstanding | shares | 27,553 |
Remaining contract life in years, Outstanding options | 3 years 7 months 20 days |
Number outstanding, Weighted average exercise price | $ 48.30 |
Number exercisable | shares | 27,553 |
Remaining contract life in years, Excercisable options | 3 years 7 months 20 days |
Number excercisable, Weighted average exercise price | $ 48.30 |
$ 51.74 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 51.74 |
Number outstanding | shares | 10,120 |
Remaining contract life in years, Outstanding options | 2 years 1 month 24 days |
Number outstanding, Weighted average exercise price | $ 51.74 |
Number exercisable | shares | 10,120 |
Remaining contract life in years, Excercisable options | 2 years 1 month 24 days |
Number excercisable, Weighted average exercise price | $ 51.74 |
$ 67.29 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 67.29 |
Number outstanding | shares | 37,768 |
Remaining contract life in years, Outstanding options | 5 years 1 month 20 days |
Number outstanding, Weighted average exercise price | $ 67.29 |
Number exercisable | shares | 37,768 |
Remaining contract life in years, Excercisable options | 5 years 1 month 20 days |
Number excercisable, Weighted average exercise price | $ 67.29 |
$ 80.40 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 80.40 |
Number outstanding | shares | 53,701 |
Remaining contract life in years, Outstanding options | 6 years 1 month 17 days |
Number outstanding, Weighted average exercise price | $ 80.40 |
Number exercisable | shares | 53,701 |
Remaining contract life in years, Excercisable options | 6 years 1 month 17 days |
Number excercisable, Weighted average exercise price | $ 80.40 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) € in Millions, Vehicle in Millions, R$ in Millions | Nov. 22, 2017USD ($) | Nov. 22, 2017EUR (€) | Jun. 29, 2016VehicleClaim | Jun. 09, 2011Facility | Sep. 30, 2017USD ($) | Sep. 30, 2017BRL (R$) | Apr. 30, 2016Purchaser | Mar. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2014BRL (R$) | Dec. 31, 2018USD ($)Defendant | Dec. 31, 2018EUR (€) | Mar. 31, 2018 | Dec. 31, 2018USD ($)Defendant | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) |
Loss Contingencies [Line Items] | ||||||||||||||||||
Loss contingency, accrual | $ 210,000,000 | $ 210,000,000 | ||||||||||||||||
Number of defendants in antitrust class actions | Defendant | 19 | |||||||||||||||||
Litigation with European Commission | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Number of facilities visited | Facility | 2 | |||||||||||||||||
Loss contingency, accrual | $ 9,700,000 | € 8.1 | $ 210,000,000 | € 184 | $ 9,900,000 | € 8.3 | ||||||||||||
Fine payable period after investigation resolved | 90 days | |||||||||||||||||
Litigation with Competition Commission Of South Africa | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Loss contingency, accrual | $ 5,000,000 | $ 6,000,000 | ||||||||||||||||
Settlement agreement, date | September 2,017 | |||||||||||||||||
Settlement agreements amount | $ 11,000,000 | R$ 150 | ||||||||||||||||
Litigation with General Superintendence of Administrative Council for Economic Defense in Brazil | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Settlement agreement, date | November 2,016 | |||||||||||||||||
Brazilian Subsidiaries | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Aggregate assessment for all alleged violations | $ 21,000,000 | R$ 81 | ||||||||||||||||
Brazilian Subsidiaries | Maximum | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Reduce in penalties associated with eligible tax matters, percentage | 85.00% | |||||||||||||||||
United States District Court for Eastern District of Michigan | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Settlement agreements amount | $ 81,000,000 | |||||||||||||||||
Number of pending antitrust class actions | Defendant | 15 | 15 | ||||||||||||||||
Expense related settlement agreements | $ 77,000,000 | $ 65,000,000 | ||||||||||||||||
United States District Court for Eastern District of Michigan | Direct purchaser settlement class | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Expense related settlement agreements | $ 60,500,000 | |||||||||||||||||
Number of purchaser opt for direct purchaser class settlement | Purchaser | 2 | |||||||||||||||||
United States District Court for Eastern District of Michigan | End-payor settlement class | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Number of purchaser opt for end-payor class settlements | Purchaser | 1 | |||||||||||||||||
Ontario and Quebec Superior Court | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Number of pending antitrust class actions | Defendant | 4 | 4 | ||||||||||||||||
Damages from Product Defects | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Number of vehicles recalled | Vehicle | 1.4 | |||||||||||||||||
Number of confirmed incidents | Claim | 8 | |||||||||||||||||
Damages from Product Defects | Maximum | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Range of possible loss | $ 20,000,000 | $ 20,000,000 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases Disclosure [Line Items] | |||
Rental expense for operating leases | $ 47 | $ 46 | $ 41 |
Operating leases, future minimum payment, total | 186 | ||
Operating leases, future minimum payment, 2019 | 42 | ||
Operating leases,future minimum payment, 2020 | 36 | ||
Operating leases, future minimum payment, 2021 | 29 | ||
Operating leases, future minimum payment, 2022 | 26 | ||
Operating leases, future minimum payment, 2023 | 20 | ||
Operating leases, future minimum payment, 2024 and thereafter | $ 33 | ||
Maximum | |||
Leases Disclosure [Line Items] | |||
Operating leases expiration date | 2,045 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Retirement Plans [Line Items] | |||||
Contributions to defined contribution plans | $ 19,200,000 | $ 21,700,000 | $ 21,300,000 | ||
Minimum percentage for which multiemployer plans is funded | 100.00% | ||||
Post retirement plan description | In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. | ||||
Years of service to qualify for a benefit from the plan in the future. | 15 years | ||||
Weighted average discount rate used to determine U.S. postretirement benefit obligation | 4.45% | 3.75% | |||
Average discount rate used to determine U.S. postretirement benefit cost | 3.75% | 4.40% | 4.65% | ||
Increase or decrease in the annual health care cost trend rates | 1.00% | ||||
Pension Plans, Defined Benefit | |||||
Retirement Plans [Line Items] | |||||
Expected amortization of net actuarial losses in next fiscal year | $ 900,000 | ||||
Net periodic benefit cost | 16,900,000 | ||||
Estimated amortization of prior service credit in next fiscal year | 300,000 | ||||
Accumulated benefit obligation | $ 167,800,000 | $ 173,500,000 | |||
Pension Plans, Defined Benefit | Scenario, Forecast | |||||
Retirement Plans [Line Items] | |||||
Net periodic benefit cost | $ 16,900,000 | ||||
Pension Plans, Defined Benefit | Minimum | |||||
Retirement Plans [Line Items] | |||||
Estimated remaining service lives of the plan participants, years | 7 years | ||||
Expected long-term rate of return on assets | 2.25% | ||||
Pension Plans, Defined Benefit | Maximum | |||||
Retirement Plans [Line Items] | |||||
Estimated remaining service lives of the plan participants, years | 33 years | ||||
Expected long-term rate of return on assets | 2.50% | ||||
Postretirement Benefits Other Than Pensions | |||||
Retirement Plans [Line Items] | |||||
Net periodic benefit cost | $ (1,600,000) | (1,800,000) | $ (1,200,000) | ||
Defined benefit plans that will be amortized from other comprehensive income | (2,500,000) | ||||
Non-U.S. Pension Plans | Pension Plans, Defined Benefit | |||||
Retirement Plans [Line Items] | |||||
Net periodic benefit cost | 16,900,000 | 16,500,000 | $ 13,700,000 | ||
Company contributions | $ 9,000,000 | $ 6,300,000 | |||
Non-U.S. Pension Plans | Pension Plans, Defined Benefit | Minimum | |||||
Retirement Plans [Line Items] | |||||
Expected long-term rate of return on assets | [1] | 2.25% | 1.50% | 1.50% | |
Non-U.S. Pension Plans | Pension Plans, Defined Benefit | Maximum | |||||
Retirement Plans [Line Items] | |||||
Expected long-term rate of return on assets | [1] | 2.50% | 2.50% | 3.60% | |
SWEDEN | |||||
Retirement Plans [Line Items] | |||||
Contributions to multi-employer plans | $ 6,100,000 | $ 9,700,000 | $ 4,400,000 | ||
U.K. Pension Plans | Pension Plans, Defined Benefit | |||||
Retirement Plans [Line Items] | |||||
Target allocation | 100.00% | ||||
Company contributions | $ 1,300,000 | 1,200,000 | |||
U.K. Pension Plans | Pension Plans, Defined Benefit | Debt Instruments | |||||
Retirement Plans [Line Items] | |||||
Percentage of total plan assets | 79.00% | ||||
U.K. Pension Plans | Pension Plans, Defined Benefit | Scenario, Forecast | |||||
Retirement Plans [Line Items] | |||||
Expected contribution by the company over the next fiscal year | 1,200,000 | ||||
U.S. Pension Plans | Pension Plans, Defined Benefit | |||||
Retirement Plans [Line Items] | |||||
Curtailment expenses | $ 0 | ||||
Decrease in projected benefit obligation due to curtailment | 62,000,000 | ||||
Net periodic benefit cost | $ 3,400,000 | 12,400,000 | $ 10,200,000 | ||
Estimated remaining service lives of the plan participants, years | 10 years | ||||
Accumulated benefit obligation | $ 314,800,000 | $ 336,900,000 | |||
Targeted level of equity exposure | 40.00% | ||||
Expected long-term rate of return on assets | 7.08% | 7.08% | 7.08% | ||
Target allocation | 100.00% | ||||
Company contributions | $ 6,700,000 | $ 6,700,000 | |||
U.S. Pension Plans | Pension Plans, Defined Benefit | Scenario, Forecast | |||||
Retirement Plans [Line Items] | |||||
Expected amortization of net actuarial losses in next fiscal year | 1,600,000 | ||||
Net periodic benefit cost | $ 9,600,000 | ||||
Expected long-term rate of return on assets | 5.05% | ||||
Expected contribution by the company over the next fiscal year | $ 7,000,000 | ||||
[1] | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent around 86% of the total Non-U.S. projected benefit obligation. |
Changes in Benefit Obligations
Changes in Benefit Obligations and Plan Assets Related to Continuing Operations (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | $ 368.6 | $ 361.2 | |
Service cost | 8.7 | 9 | $ 8.3 |
Interest cost | 12.8 | 14.8 | 14.6 |
Change in discount rate | (44.6) | 53.4 | |
Experience | 0.8 | (2) | |
Other assumption changes | 3.5 | 4.2 | |
Benefits paid | (17.7) | (9.8) | |
Curtailments | (62.2) | ||
Benefit obligation at end of year | 332.1 | 368.6 | 361.2 |
Fair value of plan assets at beginning of year | 297.9 | 256.5 | |
Actual return on plan assets | (13.9) | 44.5 | |
Company contributions | 6.7 | 6.7 | |
Fair value of plan assets at end of year | 273 | 297.9 | 256.5 |
Funded status recognized in the balance sheet | (59.1) | (70.7) | |
Non-U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | 220.9 | 190.6 | |
Service cost | 10.8 | 10.4 | 10.8 |
Interest cost | 5.7 | 5.5 | 5.8 |
Change in discount rate | (12.1) | 5.9 | |
Experience | 4.7 | (4.3) | |
Other assumption changes | 4.8 | 1.4 | |
Plan amendments | (0.1) | (0.5) | |
Benefits paid | (7.9) | (7.9) | |
Plan settlements | (0.8) | (0.1) | |
Special termination benefits | 0.5 | 0.3 | 0.1 |
Translation difference | (9.6) | 19.6 | |
Benefit obligation at end of year | 216.9 | 220.9 | 190.6 |
Fair value of plan assets at beginning of year | 84.8 | 76.5 | |
Actual return on plan assets | (1.9) | 2.3 | |
Company contributions | 9 | 6.3 | |
Translation difference | (5.4) | 7.7 | |
Fair value of plan assets at end of year | 77.8 | 84.8 | $ 76.5 |
Funded status recognized in the balance sheet | $ (139.1) | $ (136.1) |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (credit) cost | $ 16.9 | ||
Pension Plans, Defined Benefit | U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 8.7 | $ 9 | $ 8.3 |
Interest cost | 12.8 | 14.8 | 14.6 |
Expected return on plan assets | (20.4) | (17.6) | (16.6) |
Amortization of prior service credit | 0.1 | 0 | (0.9) |
Amortization of actuarial loss | 2.2 | 6 | 4.8 |
Curtailment loss | 0.2 | ||
Net periodic benefit (credit) cost | 3.4 | 12.4 | 10.2 |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 10.8 | 10.4 | 10.8 |
Interest cost | 5.7 | 5.5 | 5.8 |
Expected return on plan assets | (2) | (1.9) | (2.2) |
Amortization of prior service credit | 0.3 | 0.2 | 0.2 |
Amortization of actuarial loss | 1.4 | 1.9 | 1.4 |
Settlement loss (gain) | 0.2 | 0.1 | (2.4) |
Special termination benefits | 0.5 | 0.3 | 0.1 |
Net periodic benefit (credit) cost | 16.9 | 16.5 | 13.7 |
Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0.3 | 0.3 | 0.3 |
Interest cost | 0.6 | 0.6 | 0.7 |
Amortization of prior service credit | (2.2) | (2.2) | (2.2) |
Amortization of actuarial loss | (0.3) | (0.5) | |
Net periodic benefit (credit) cost | $ (1.6) | $ (1.8) | $ (1.2) |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Income Before Tax Related to Continuing Operations (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans, Defined Benefit | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 48 | $ 56.2 | |
Prior service cost | 0.1 | 0.1 | |
Total accumulated other comprehensive income recognized in the balance sheet | 48.1 | 56.3 | $ 95.9 |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 30.8 | 32.6 | |
Prior service cost | 3.1 | 2.9 | |
Total accumulated other comprehensive income recognized in the balance sheet | 33.9 | 35.5 | $ 32.2 |
Postretirement Benefits Other Than Pensions | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (4.6) | (3.7) | |
Prior service cost | (8.2) | (10.6) | |
Total accumulated other comprehensive income recognized in the balance sheet | $ (12.8) | $ (14.3) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income Before Tax from Continuing Operations (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | $ 56.3 | $ 95.9 |
Net actuarial (gain) loss | (6) | (33.4) |
Amortization of prior service credit (cost) | 0 | (0.2) |
Amortization of actuarial loss | (2.2) | (6) |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | 48.1 | 56.3 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | 35.5 | 32.2 |
Net actuarial (gain) loss | 1.6 | 2.4 |
Amortization of prior service credit (cost) | (0.3) | (0.2) |
Amortization of actuarial loss | (1.5) | (2) |
Translation difference | (1.4) | 3.1 |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | $ 33.9 | $ 35.5 |
Pension Plans for which ABO exc
Pension Plans for which ABO exceeds Fair Value of Plan Assets Related to Continuing Operations (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | $ 332.1 | $ 368.6 |
Accumulated Benefit Obligation (ABO) | 314.8 | 336.9 |
Fair value of plan assets | 272.9 | 297.9 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | 143.3 | 143.6 |
Accumulated Benefit Obligation (ABO) | 110.8 | 112.5 |
Fair value of plan assets | $ 3.9 | $ 4.1 |
Assumptions to Determine Benefi
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Detail) - Pension Plans, Defined Benefit | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected long-term rate of return on assets | 2.25% | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected long-term rate of return on assets | 2.50% | |||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | 4.35% | 3.55% | ||
Benefit Obligation rate of increases in compensation level | 2.65% | 2.65% | ||
Net periodic benefit cost discount rate | 3.55% | 4.15% | 4.50% | |
Net periodic benefit cost rate of increases in compensation level | 2.65% | 2.65% | 2.65% | |
Expected long-term rate of return on assets | 7.08% | 7.08% | 7.08% | |
Non-U.S. Pension Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | [1] | 0.50% | 0.25% | |
Benefit Obligation rate of increases in compensation level | [1] | 2.00% | 2.00% | |
Net periodic benefit cost discount rate | [1] | 0.25% | 0.50% | 0.50% |
Net periodic benefit cost rate of increases in compensation level | [1] | 2.00% | 2.00% | 2.25% |
Expected long-term rate of return on assets | [1] | 2.25% | 1.50% | 1.50% |
Non-U.S. Pension Plans | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | [1] | 3.25% | 3.25% | |
Benefit Obligation rate of increases in compensation level | [1] | 5.00% | 5.00% | |
Net periodic benefit cost discount rate | [1] | 3.25% | 3.25% | 3.60% |
Net periodic benefit cost rate of increases in compensation level | [1] | 5.00% | 5.00% | 5.00% |
Expected long-term rate of return on assets | [1] | 2.50% | 2.50% | 3.60% |
[1] | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent around 86% of the total Non-U.S. projected benefit obligation. |
Assumptions to Determine Bene_2
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Projected benefit obligation | 86.00% |
Fair Value of Total Plan Assets
Fair Value of Total Plan Assets Related to Continuing Operations (Detail) - Pension Plans, Defined Benefit | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 100.00% | |
Fair Value allocation | 100.00% | 100.00% |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 100.00% | 100.00% |
Other Assets | U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 0.00% | 1.00% |
Other Assets | Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 21.00% | 21.00% |
Equity Securities | U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 40.00% | |
Fair Value allocation | 38.00% | 56.00% |
Equity Securities | Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 0.00% | 0.00% |
Debt Securities | U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 60.00% | |
Fair Value allocation | 62.00% | 43.00% |
Debt Securities | Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 79.00% | 79.00% |
Summary of Fair Value of Compan
Summary of Fair Value of Company's Plan Assets (Detail) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 78.5 | $ 88.1 |
Total | 350.8 | 382.7 |
Non-U.S. Bonds | Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 61.4 | 66.9 |
Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 12.6 | 13.8 |
Common Collective Trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value | 272.3 | 294.6 |
Other Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 4.5 | $ 7.4 |
Estimated Future Benefit Expect
Estimated Future Benefit Expected Payments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Pension Plans, Defined Benefit | U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 13 |
2,020 | 14 |
2,021 | 17 |
2,022 | 19 |
2,023 | 20 |
Years 2024-2028 | 123 |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 8 |
2,020 | 8 |
2,021 | 9 |
2,022 | 9 |
2,023 | 10 |
Years 2024-2028 | 63 |
Postretirement Benefits Other Than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 0.4 |
2,020 | 0.4 |
2,021 | 0.5 |
2,022 | 0.5 |
2,023 | 0.6 |
Years 2024-2028 | $ 3.5 |
Schedule of Changes in Benefit
Schedule of Changes in Benefit Obligation Related to Continuing Operations (Detail) - Postretirement Benefits Other Than Pensions - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | $ 17.8 | $ 15.8 | |
Service cost | 0.3 | 0.3 | $ 0.3 |
Interest cost | 0.6 | 0.6 | 0.7 |
Actuarial (gains) losses | (1.2) | 0.7 | |
Benefits paid | (0.3) | (0.2) | |
Other | (1.7) | 0.6 | |
Benefit obligation at end of year | $ 15.5 | $ 17.8 | $ 15.8 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Veoneer, Inc. | ||
Related Party Transaction [Line Items] | ||
Purchases from related party | $ 78 | $ 76 |
Summary of Amounts Due to and D
Summary of Amounts Due to and Due from Related Party (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Related Party Transactions [Abstract] | |
Related party receivables | $ 15 |
Related party payables | 50.7 |
Related party accrued expenses | $ 13 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Long-lived assets, Total | $ 3,436 | $ 3,390 | |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
External sales | 1,943 | 1,689 | $ 1,862 |
Long-lived assets, Total | 1,527 | 1,601 | |
Long-lived intangible assets from acquisition goodwill | 1,250 | 1,263 | |
Exports from U.S. to other Regions | |||
Segment Reporting Information [Line Items] | |||
External sales | $ 384 | $ 362 | $ 423 |
Customer Concentration Risk | Sales | Renault | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 15.00% | 15.00% | 12.00% |
Customer Concentration Risk | Sales | VW | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 10.00% | ||
Customer Concentration Risk | Sales | Ford | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 10.00% | 10.00% | |
Customer Concentration Risk | Sales | Hyundai | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 10.00% |
Net Sales by Geographical Area
Net Sales by Geographical Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 8,678.2 | $ 8,136.8 | $ 7,921.6 |
Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,194.9 | 2,998.1 | 2,830.2 |
China | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,522.2 | 1,421.2 | 1,385.4 |
Japan | |||
Segment Reporting Information [Line Items] | |||
Net sales | 827.9 | 787 | 718.6 |
Rest of Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 844.8 | 789.9 | 726.2 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,735.1 | 2,435.2 | 2,548 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,748.2 | $ 2,703.5 | $ 2,543.4 |
Net Sales by Product (Detail)
Net Sales by Product (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 8,678.2 | $ 8,136.8 | $ 7,921.6 | |
Airbag Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | 5,698.6 | 5,343.2 | 5,256.4 |
Seatbelt Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | $ 2,979.6 | $ 2,793.6 | $ 2,665.2 |
[1] | Including Corporate and other sales |
Long-lived Assets by Geographic
Long-lived Assets by Geographical Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $ 3,436 | $ 3,390 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 881 | 975 |
China | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 500 | 548 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 135 | 196 |
Rest of Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 246 | 231 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 1,708 | 1,572 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $ 847 | $ 843 |
Schedule of Computation of Basi
Schedule of Computation of Basic and Diluted EPS under Two-class Method (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Basic and diluted: | ||||||||||||
Net income from continuing operations | $ 375.9 | $ 586 | $ 558.4 | |||||||||
Net (Loss) income from discontinued operations | (185.5) | (158.9) | 8.7 | |||||||||
Net income attributable to controlling interest | $ (93) | $ 117.5 | $ 192.7 | $ 158.7 | $ 196.7 | $ 105.7 | $ 135.7 | $ 147.9 | 190.4 | 427.1 | 567.1 | |
Participating share awards with dividend equivalent rights | 0 | 0 | ||||||||||
Net income available to common shareholders | 190.4 | 427.1 | 567.1 | |||||||||
Earnings allocated to participating share awards | [1] | 0 | 0 | |||||||||
Net income attributable to common shareholders | $ 190.4 | $ 427.1 | $ 567.1 | |||||||||
Denominator: | ||||||||||||
Basic: Weighted average common stock | [1] | 87.1 | 87.5 | 88.2 | ||||||||
Add: Weighted average stock options/share awards | [1] | 0.2 | 0.2 | 0.2 | ||||||||
Diluted: | [1] | 87.3 | 87.7 | 88.4 | ||||||||
Basic EPS: | ||||||||||||
Continuing operations | [2] | $ 4.32 | $ 6.70 | $ 6.33 | ||||||||
Discontinued operations | [2] | (2.13) | (1.82) | 0.10 | ||||||||
Basic earnings per share | $ (1.07) | $ 1.35 | $ 2.21 | $ 1.82 | $ 2.26 | $ 1.22 | $ 1.54 | $ 1.67 | 2.19 | 4.88 | 6.43 | |
Diluted EPS: | ||||||||||||
Continuing operations | [2] | 4.31 | 6.68 | 6.32 | ||||||||
Discontinued operations | [2] | (2.13) | (1.81) | 0.10 | ||||||||
Diluted earnings per share | $ (1.06) | $ 1.34 | $ 2.20 | $ 1.82 | $ 2.26 | $ 1.21 | $ 1.54 | $ 1.67 | $ 2.18 | $ 4.87 | $ 6.42 | |
[1] | The Company’s unvested RSUs and PSs, of which some included the right to receive non-forfeitable dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. | |||||||||||
[2] | Participating share awards with the right to receive dividend equivalents are (under the two class method) excluded from the earnings per share calculation (see Note 23 in this Annual Report). |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive shares | 0 | 100,000 | 200,000 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net sales | $ 2,192.8 | $ 2,033 | $ 2,211.5 | $ 2,240.9 | $ 2,158.7 | $ 1,952.6 | $ 1,983.9 | $ 2,041.6 | $ 8,678.2 | $ 8,136.8 | $ 7,921.6 | |||
Gross profit | 425.2 | 386.1 | 439.7 | 460.3 | 440.8 | 394.9 | 415.3 | 428.7 | 1,711.3 | 1,679.7 | 1,628 | |||
Income from Continuing Operations before income taxes | 2.1 | 171.3 | 210.1 | 228.9 | 240.8 | 150.7 | 201.2 | 199.7 | 612.4 | 792.4 | 784.2 | |||
Net income | (92.8) | 118 | 193.2 | 159.1 | 197.4 | 106.2 | 136.1 | 148.3 | 183.7 | [1] | 303 | [1] | 561.6 | [1] |
Net income attributable to controlling interest from Continuing Operations | $ (93) | $ 117.5 | $ 192.7 | $ 158.7 | $ 196.7 | $ 105.7 | $ 135.7 | $ 147.9 | $ 190.4 | $ 427.1 | $ 567.1 | |||
Earnings per share - basic | $ (1.07) | $ 1.35 | $ 2.21 | $ 1.82 | $ 2.26 | $ 1.22 | $ 1.54 | $ 1.67 | $ 2.19 | $ 4.88 | $ 6.43 | |||
Earnings per share - diluted | (1.06) | 1.34 | 2.20 | 1.82 | 2.26 | 1.21 | 1.54 | 1.67 | 2.18 | 4.87 | 6.42 | |||
Cash dividend per share - paid | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.58 | $ 2.46 | $ 2.38 | $ 2.30 | |||
[1] | See Note 15 for further details – includes tax effects where applicable. |
Quarterly Financial Data - Addi
Quarterly Financial Data - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Accrued amount on European Commision's investigation | $ 210 | $ 210 |