Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 17, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ALV | |
Entity Registrant Name | AUTOLIV INC | |
Entity Central Index Key | 0001034670 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 87,224,738 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Income Statement [Abstract] | |||
Net sales | $ 2,174 | $ 2,240.9 | |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | |
Cost of sales | $ (1,795.2) | $ (1,780.6) | |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | |
Gross profit | $ 378.8 | $ 460.3 | |
Selling, general and administrative expenses | (101.4) | (101.1) | |
Research, development and engineering expenses, net | (107.4) | (108.5) | |
Amortization of intangibles | (2.8) | (2.8) | |
Other income (expense), net | 6 | (4.5) | |
Operating income | 173.2 | 243.4 | |
Income from equity method investments | 1 | 1.3 | |
Interest income | 1 | 1.7 | |
Interest expense | (18) | (13.6) | |
Other non-operating items, net | (3.6) | (3.9) | |
Income from continuing operations before income taxes | 153.6 | 228.9 | |
Income tax expense | (42.1) | (69.8) | |
Net income from continuing operations | 111.5 | 159.1 | |
Loss from discontinued operations, net of income taxes (Note 3) | (36.7) | ||
Net income | 111.5 | 122.4 | |
Less: Net income from continuing operations attributable to non-controlling interest | 0.1 | 0.4 | |
Less: Net loss from discontinued operations attributable to non-controlling interest | (4.7) | ||
Net income attributable to controlling interest | 111.4 | 126.7 | |
Amounts attributable to controlling interest: | |||
Net Income from continuing operations | 111.4 | 158.7 | |
Net Loss from discontinued operations (Note 3) | (32) | ||
Net income attributable to controlling interest | $ 111.4 | $ 126.7 | |
Earnings per share continuing operations - basic | [1] | $ 1.28 | $ 1.82 |
Loss per share discontinued operations – basic | [1] | (0.36) | |
Basic earnings per share | 1.28 | 1.46 | |
Earnings per share continuing operations - diluted | [1] | 1.27 | 1.82 |
Loss per share discontinued operations – diluted | [1] | (0.37) | |
Diluted earnings per share | $ 1.27 | $ 1.45 | |
Weighted average number of shares outstanding, net of treasury shares (in millions) | [2] | 87.2 | 87 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | [2] | 87.4 | 87.3 |
Cash dividend per share – declared | $ 0.62 | $ 0.62 | |
Cash dividend per share – paid | $ 0.62 | $ 0.60 | |
[1] | 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 14 to the unaudited condensed consolidated financial statements). | ||
[2] | 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 (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 111.5 | $ 122.4 |
Other comprehensive income before tax: | ||
Change in cumulative translation adjustments | 20.8 | 91.6 |
Net change in cash flow hedges | 0.4 | |
Net change in unrealized components of defined benefit plans | 0.1 | 0.8 |
Other comprehensive income, before tax | 20.9 | 92.8 |
Tax effect allocated to other comprehensive income | 0 | (0.2) |
Other comprehensive income, net of tax | 20.9 | 92.6 |
Comprehensive income | 132.4 | 215 |
Less: Comprehensive income attributable to non-controlling interest | 0.4 | 1.5 |
Comprehensive income attributable to controlling interest | $ 132 | $ 213.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | $ 436.6 | $ 615.8 | |
Receivables, net | 1,746.7 | 1,652.1 | |
Inventories, net | 741.1 | 757.9 | |
Other current assets | 183.8 | 244.6 | |
Related party receivables (Note 16) | 2.9 | 15 | |
Total current assets | 3,111.1 | 3,285.4 | |
Property, plant and equipment, net | 1,710.9 | 1,690.1 | |
Investments and other non-current assets | 384.3 | 323.5 | |
Right-of-use assets - operating leases (Note 4) | 147.3 | ||
Goodwill | 1,388.3 | 1,389.9 | |
Intangible assets, net | 30.7 | 32.7 | |
Total assets | 6,772.6 | 6,721.6 | |
Liabilities and equity | |||
Short-term debt | [1] | 437.6 | 620.7 |
Accounts payable | 947.2 | 978.3 | |
Accrued expenses | 1,015.1 | 935.4 | |
Other current liabilities | 253.3 | 267.4 | |
Related party liabilities (Note 16) | 48.3 | 63.7 | |
Operating lease liabilities - current (Note 4) | 37 | ||
Total current liabilities | 2,738.5 | 2,865.5 | |
Long-term debt | [1] | 1,598.1 | 1,609 |
Pension liability | 200.4 | 198.2 | |
Other non-current liabilities | 151.1 | 152.1 | |
Operating lease liabilities - non-current (Note 4) | 110.5 | ||
Total non-current liabilities | 2,060.1 | 1,959.3 | |
Common stock | 102.8 | 102.8 | |
Additional paid-in capital | 1,329.3 | 1,329.3 | |
Retained earnings (Note 12) | 2,096.4 | 2,041.8 | |
Accumulated other comprehensive loss (Note 12) | (402.6) | (423.2) | |
Treasury stock (Note 12) | (1,165.4) | (1,167) | |
Total controlling interest | 1,960.5 | 1,883.7 | |
Non-controlling interest (Note 12) | 13.5 | 13.1 | |
Total equity | 1,974 | 1,896.8 | |
Total liabilities and equity | $ 6,772.6 | $ 6,721.6 | |
[1] | Debt as reported in balance sheet. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income from continuing operations | $ 111.5 | $ 159.1 |
Net loss from discontinued operations | (36.7) | |
Depreciation and amortization | 90.1 | 109.8 |
Change in legal provision | (6.8) | |
Net change in operating assets and liabilities | (37.1) | (222.7) |
Other, net | (4) | 6.1 |
Net cash provided by operating activities (Note 3) | 153.7 | 15.6 |
Investing activities | ||
Expenditures for property, plant and equipment | (108.4) | (141) |
Proceeds from sale of property, plant and equipment | 0.4 | 1.7 |
Acquisitions of businesses and interest in/additional contributions to affiliates, net of cash acquired | (72.9) | |
Net cash used in investing activities (Note 3) | (108) | (212.2) |
Financing activities | ||
Net (decrease) increase in short-term debt | (173.1) | 65.4 |
Dividends paid | (54.3) | (52.4) |
Common stock options exercised | 0.1 | 4.9 |
Net cash (used in) provided by financing activities | (227.3) | 17.9 |
Effect of exchange rate changes on cash and cash equivalents | 2.4 | 13.1 |
Decrease in cash and cash equivalents | (179.2) | (165.6) |
Cash and cash equivalents at beginning of period | 615.8 | 959.5 |
Cash and cash equivalents at end of period | $ 436.6 | $ 793.9 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited financial statements and all adjustments considered necessary for a fair presentation have been included in the financial statements. All such adjustments are of a normal recurring nature. The results for the interim period are not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2019. The Condensed Consolidated Balance Sheet at December 31, 2018 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. 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 restated historical financial statements reflecting the spin-off are unaudited, but have been derived from Autoliv’s historical audited annual reports. 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 Unaudited Condensed 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, which governs certain relationships between the parties following the spin-off. Certain amounts in the prior year’s condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as a result of the spin-off. Autoliv has 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 management structure. The Company’s single reportable segment includes the Company’s airbag and seatbelt products and components. Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 21, 2019. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standards | Adoption of New Accounting Standards In August 2017, the FASB issued ASU 2017-12 , Derivative and Hedging (Topic 815), Targeted improvements to accounting for hedging activities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Balance Sheet (Dollars in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets Right-of-use asset, operating leases $ — $ 155.4 $ 155.4 Current liabilities Operating lease liabilities - current — 38.7 38.7 Non-current liabilities Operating lease liabilities - non-current — 116.7 116.7 Accounting Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Compensation-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 June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
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 unaudited condensed 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 unaudited Condensed Consolidated Statements of Income. The following table presents the financial results of Veoneer (dollars in millions). Three months ended March 31, 2019 March 31, 2018 Net sales $ — $ 571.9 Cost of sales — (453.0 ) Gross profit — 118.9 Selling, general and administrative expenses — (25.7 ) Research, development and engineering expenses, net — (105.2 ) Amortization of intangibles — (5.3 ) Other income (expense), net — (0.7 ) Operating loss — (18.0 ) Loss from equity method investments — (14.0 ) Interest expense — (0.1 ) Other non-operating items, net — 0.1 Loss before income taxes — (32.0 ) Income tax expense — (4.7 ) Loss from discontinued operations, net of income taxes — (36.7 ) Less: Net loss attributable to non-controlling interest — (4.7 ) Net loss from discontinued operations $ — $ (32.0 ) The Company incurred $20 million in separation costs related to the spin-off of Veoneer for the three month period ended March 31, 2018 and was reported in Other income (expense), net. These costs were 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. 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 (the “Spin-Off Agreements”). For more detailed information concerning the Spin-off Agreements, see Note 3 to the Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 21, 2019. No changes have been made to any of the agreements as of March 31, 2019. Veoneer Capital Contribution In connection with the spin-off, Autoliv capitalized Veoneer with approximately $1 billion of cash. Net assets of $2 , 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). Three months ended March 31, 2019 March 31, 2018 Depreciation $ — $ 22.6 Amortization of intangible assets — 5.3 Capital expenditures — 30.9 Acquisition in affiliate, net — 71.0 M/A-COM earn-out adjustment — (14.0 ) Undistributed loss from equity method investment — 14.0 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | The Company has operating leases for offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment. The Company’s leases have remaining lease terms of 1-47 years, some of which include options to extend the leases for up to 25 years, and some of which include options to terminate the leases within 1 year(s). The Company has not identified any material finance leases as of March 31, 2019. As of March 31, 2019, the Company has additional operating leases, primarily for Warehousing, Cars and Other equipment that have not yet commenced of $5 million. These operating leases will commence during 2019 with lease terms of 1-8 years. The Company has elected the practical expedient of not separating lease components from non-lease components for all its classes of underlying assets. The Company has also elected to recognize the lease payments for short-term leases in its consolidated statement of income on a straight-line basis over the lease term and recognize the variable lease payments in the period in which the obligation for those payments is incurred. If the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate as the discount rate. The Company uses its best judgement when determining the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term to the lease payments in a similar currency. The following tables provide information about the Company’s leases: Lease cost (in millions) Three months ended March 31, 2019 Operating lease cost $ 12 Short-term lease cost 2 Variable lease cost 1 Sublease income (1 ) Total lease cost $ 14 Other information (in millions) Three months ended or as of March 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 11 Right-of-use assets obtained in exchange for new operating lease liabilities 3 Weighted-average remaining lease term: - operating leases 7 years Weighted-average discount rate: - operating leases 2.7 % Maturities of operating lease liabilities (undiscounted cash flows) are as follows: (in millions) As of March 31, 2019 2019 (excluding the three months ended March 31, 2019) $ 32 2020 33 2021 22 2022 17 2023 15 Thereafter 45 Total operating lease payments 164 Less imputed interest (16 ) Total operating lease liabilities $ 148 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Disaggregation of revenue In the following tables, revenue from the Company’s continuing operations is disaggregated by primary region and products. Net Sales by Products (Dollars in millions) Three months ended March 31, 2019 March 31, 2018 Airbag Products and Other 1) $ 1,447.7 $ 1,439.6 Seatbelt Products 1) 726.3 801.3 Total net sales $ 2,174.0 $ 2,240.9 1) Net Sales by Region (Dollars in millions) Three months ended March 31, 2019 March 31, 2018 China $ 330.4 $ 366.4 Japan 208.1 214.7 Rest of Asia 212.2 211.1 Americas 743.1 667.2 Europe 680.2 781.5 Total net sales $ 2,174.0 $ 2,240.9 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 and is included in Other current assets on the Condensed Consolidated Balance Sheet. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. The net change in the contract assets balance, reflecting the adjustments needed to align revenue recognition for work completed but not billed, for the three months period ended March 31, 2019 is not material. Certain contracts have resulted in consideration in advance of fulfilling the performance obligations and the amounts received have been classified as contract liabilities within Other current liabilities and Other non-current liabilities on the Condensed Consolidated Balance Sheet. The portion of the contract liabilities recognized as revenue for the three months period ended March 31, 2019 is not material. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
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 The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis for the continuing operations. 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, in the Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018, have been presented on a gross basis. 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 chose not to offset are presented below. March 31, 2019 Fair Value Measurements Description Nominal volume Derivative asset Derivative liability Balance sheet location Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 805.9 1) $ 1.2 2) $ 3.6 3) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 805.9 $ 1.2 $ 3.6 1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $801.3 million. 2) Net amount after deducting for offsetting swaps under ISDA agreements is $1.2 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $3.6 million. December 31, 2018 Fair Value Measurements Description Nominal volume Derivative asset Derivative liability Balance sheet location Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 659.1 1) $ 1.9 2) $ 1.1 3) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 659.1 $ 1.9 $ 1.1 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. Derivatives designated as hedging instruments There were no derivatives designated as hedging instruments as of March 31, 2019 and December 31, 2018 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 Income. The derivatives not designated as hedging instruments outstanding at March 31, 2019 and December 31, 2018 related to the continuing operations were foreign exchange swaps. For the three months ended March 31, 2019 and March 31, 2018, the gains and losses recognized in other non-operating items, net were a loss of $3.2 million and a loss of $0.9 million, respectively, for derivative instruments not designated as hedging instruments. For the three months ended March 31, 2019 and March 31, 2018, the gains and losses recognized as interest expense were immaterial. Fair Value of Debt The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy. The fair value and carrying value of debt for the continuing operations is summarized in the table below (dollars in millions). March 31, March 31, December 31, December 31, 2019 2019 2018 2018 Carrying Fair Carrying Fair value 1) value value 1) value Long-term debt U.S. Private placement $ 1,041.0 $ 1,096.6 $ 1,041.0 $ 1,061.1 Eurobond 557.1 561.0 568.0 567.8 Total $ 1,598.1 $ 1,657.6 $ 1,609.0 $ 1,628.9 Short-term debt Commercial paper $ 118.5 $ 118.5 $ 342.6 $ 342.6 Short-term portion of long-term debt 268.0 272.9 268.1 270.4 Overdrafts and other short-term debt 51.1 51.1 10.0 10.0 Total $ 437.6 $ 442.5 $ 620.7 $ 623.0 1) Debt as reported in balance sheet. Assets and liabilities measured at fair value on a nonrecurring 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 the three months ended March 31, 2019 and March 31, 2018, the Company did not record any impairment charges on its long-lived assets for its continuing operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The effective tax rate in the first quarter of 2019 was 27.4% compared to 30.5% in the same quarter of 2018. Discrete tax items, net in the first quarter of 2019 had an unfavorable impact of 0.5%. In the first quarter of 2018, discrete tax items, net had an unfavorable impact of 3.3%. 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 income 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. As of March 31, 2019, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods. During the first quarter of 2019, the Company recorded a net increase of $1.7 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits of prior years. Of the total unrecognized tax benefits of $56.1 million recorded at March 31, 2019, $5.6 million is classified as current tax payable within Other current liabilities and $50.5 million is classified as non-current tax payable within Other non-current liabilities on the Condensed Consolidated Balance Sheet. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are stated at the lower of cost (principally FIFO) and net realizable value. The components of inventories for the continuing operations were as follows (dollars in millions): As of March 31, 2019 December 31, 2018 Raw materials $ 359.4 $ 370.9 Work in progress 282.7 277.4 Finished products 184.0 194.7 Inventories 826.1 843.0 Inventory valuation reserve (85.0 ) (85.1 ) Total inventories, net of reserve $ 741.1 $ 757.9 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under existing credit facilities. The Company does not expect that the execution of these activities will have a material adverse impact on its liquidity position. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. The majority of the reserve balance as of March 31, 2019 pertains to restructuring activities initiated in Western Europe over 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 March 31, 2019, 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 $10 million to $30 million for each individual activity. In the aggregate, the cost for these Western European restructuring initiatives is approximately $107 million and the remaining restructuring liability as of March 31, 2019 is approximately $25 million out of the $29 million total reserve balance. The table below summarizes the change in the balance sheet position of the employee related restructuring reserves for the continuing operations (dollars in millions). Restructuring costs other than employee related are immaterial for all periods presented. Three months ended March 31, 2019 March 31, 2018 Reserve at beginning of the period $ 33.4 $ 39.6 Provision - charge 0.8 3.3 Provision - reversal (0.1 ) — Cash payments (5.1 ) (2.9 ) Translation difference (0.5 ) 1.1 Reserve at end of the period $ 28.5 $ 41.1 |
Product-Related Liabilities
Product-Related Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product-Related Liabilities | The Company has reserves for product risks. Such reserves are related to product performance issues including recalls, product liability and warranty issues. For further explanation, see Note 13. Contingent Liabilities below. For the three month periods ended March 31, 2019 and March 31, 2018, provisions and cash paid primarily relate to recall and warranty related issues. The decrease in the reserve balance as of March 31, 2019 compared to the prior year was mainly due to cash payments. Pursuant to the Spin-Off Agreements, Autoliv is also required to indemnify Veoneer for recalls related to certain qualified Electronics products. At March 31, 2019, the indemnification liabilities are approximately $14 million within Accrued expenses on the Condensed Consolidated Balance Sheets. Insurance receivables are included within Other current assets and Investments and other non-current assets on the Condensed Consolidated Balance Sheets. The table below summarizes the change in the balance sheet position of the product-related liabilities related to the continuing operations (dollars in millions). Three months ended March 31, 2019 March 31, 2018 Reserve at beginning of the period $ 62.2 $ 95.6 Change in reserve 2.9 (1.4 ) Cash payments (4.4 ) (14.5 ) Translation difference (0.2 ) 0.8 Reserve at end of the period $ 60.5 $ 80.5 |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | The Company’s most significant defined benefit plan is the Autoliv ASP, Inc. Pension Plan for which the benefits are based on an average of the employee’s earnings in the years preceding retirement and on credited service. This plan is closed for employees hired after December 31, 2003. In December 2017 the Company decided to amend the U.S. defined pension plan, communicating a benefits freeze that will begin on December 31, 2021. 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. The Net Periodic Benefit Costs from continuing operations related to Other Post-retirement Benefits were not significant to the condensed consolidated financial statements of the Company for the three month periods ended March 31, 2019 and March 31, 2018 and are not included in the table below. The components of total Net Periodic Benefit Cost from continuing operations associated with the Company’s defined benefit retirement plans are as follows (dollars in millions): Three months ended March 31, 2019 March 31, 2018 Service cost $ 4.5 $ 4.9 Interest cost 5.2 4.7 Expected return on plan assets (3.9 ) (5.6 ) Amortization prior service cost 0.1 0.1 Amortization of actuarial loss 0.6 0.8 Net Periodic Benefit Cost $ 6.5 $ 4.9 The Service cost and Amortization of prior service cost components in the table above are reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components Interest cost, Expected return on plan assets and Amortization of actuarial loss are reported as Other non-operating items, net in the Consolidated Statements of Income. The decrease in expected return on plan assets for the three months ended March 31, 2019 compared to the same period previous year is due to a lower assumed long-term rate of return on mainly the U.S. plan assets. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Equity | The changes in the equity components for the three month period ended March 31, 2019 were as follows (dollars in millions). Common stock Additional paid in capital Retained earnings Accumulated other comprehensive (loss) income Treasury stock Total parent shareholders' equity Non- controlling interest Total equity Balance at December 31, 2018 $ 102.8 $ 1,329.3 $ 2,041.8 $ (423.2 ) $ (1,167.0 ) $ 1,883.7 $ 13.1 $ 1,896.8 Comprehensive Income: Net income — — 111.4 — — 111.4 0.1 111.5 Foreign currency translation — — — 20.5 — 20.5 0.3 20.8 Net change in cash flow hedges — — — — — — — — Defined benefit pension plan — — — 0.1 — 0.1 — 0.1 Total Comprehensive Income — — 111.4 20.6 — 132.0 0.4 132.4 Stock-based compensation — — — — 1.6 1.6 — 1.6 Cash dividends declared — — (54.3 ) — — (54.3 ) — (54.3 ) Distribution to Veoneer — — (2.5 ) — — (2.5 ) — (2.5 ) Balance at March 31, 2019 $ 102.8 $ 1,329.3 $ 2,096.4 $ (402.6 ) $ (1,165.4 ) $ 1,960.5 $ 13.5 $ 1,974.0 The following tables present details about components of accumulated comprehensive income (loss) for the three month periods ended March 31, 2019 and March 31, 2018 (dollars in millions). Three Months ended March 31, 2019 March 31, 2018 Equity attributable to Equity attributable to Controlling interest Non-controlling interest Total Controlling interest Non-controlling interest Total Balance at beginning of period $ 1,883.7 $ 13.1 $ 1,896.8 $ 4,035.1 $ 134.3 $ 4,169.4 Total Comprehensive Income: Net income (loss) 111.4 0.1 111.5 126.7 (4.3 ) 122.4 Foreign currency translation 20.5 0.3 20.8 85.8 5.8 91.6 Net change in cash flow hedges — — — 0.4 — 0.4 Defined benefit pension plan 0.1 — 0.1 0.6 — 0.6 Total Comprehensive Income 132.0 0.4 132.4 213.5 1.5 215.0 Common Stock incentives 1.6 — 1.6 8.6 — 8.6 Cash dividends declared (54.3 ) — (54.3 ) (54.2 ) — (54.2 ) Distribution of Veoneer (2.5 ) — (2.5 ) — — — Adjustment due to adoption of ASC 606 — — — 3.2 — 3.2 Balance at end of period $ 1,960.5 $ 13.5 $ 1,974.0 $ 4,206.2 $ 135.8 $ 4,342.0 Stock Repurchase Program The Company did not repurchase any shares of its common stock in the first quarter of 2019 or in the first quarter of 2018. The Company is authorized to repurchase an additional 2,986,288 shares under the stock repurchase program at March 31, 2019. |
Contingent Liabilities
Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
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. ANTITRUST MATTERS Authorities in several jurisdictions are currently conducting or have conducted 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. 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 €8.1 million (approximately $9.7 million) with respect to this portion of the EC’s overall investigation while it continued the more significant portion of its investigation. The Company paid this amount during the first quarter of 2018, and had previously accrued €8.3 million (approximately $9.9 million) in 2017 with respect to this discrete portion of the investigation. On March 5, 2019, the EC completed the remaining portion of the investigation and imposed a fine on the Company of €179 million (approximately $203 million). In the fourth quarter of 2018, the Company had previously accrued €184 million (approximately $210 million) with respect to the remaining portion of the investigation. The difference between the actual fine and the accrual is reported in Other income (expense), net in the Consolidated statements of net income. The fine is due within 90 days of the EC decision. Civil Litigation In May 2014, the Company, without admitting any liability, entered into separate settlement agreements with the direct purchasers, auto dealers, and end-payors, which were granted final approval by the MDL court in 2015 and 2016. 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. 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. Several individuals and one insurer (and its affiliated entities) opted-out of the end-payor class settlement, including the Company’s settlement. In September 2016, the insurer (and its affiliated entities) that opted out of the end-payor class settlement filed an antitrust lawsuit in the United States District Court for the Eastern District of Michigan. The defendants’ motion to dismiss the complaint on various grounds was granted in part and denied in part in August 2018 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: As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, 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 10. Product-Related Liabilities above summarizes the change in the balance sheet position of the product related liabilities. |
Stock Incentive Plan
Stock Incentive Plan | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plan | Eligible employees and non-employee directors of the Company participate in 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. For further information about the conversion, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company recorded approximately $1.1 million stock-based compensation expense in continuing operations related to RSUs and PSs for the three month period ended March 31, 2019. During the three month period ended March 31, 2018, the Company recorded $2.3 million of stock-based compensation expense in continuing operations related to RSUs and PSs. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | For the three month periods ended March 31, 2019 and March 31, 2018, approximately 54 thousand and 0 shares, respectively, were excluded from the computation of the diluted EPS. During the three month periods ended March 31, 2019 and March 31, 2018 approximately 77 thousand and 118 thousand shares of common stock from the treasury stock were utilized by the Plan. The computation of basic and diluted EPS under the two-class method were as follows: (In millions, except per share amounts) Three months ended March 31, 2019 March 31, 2018 Numerator: Basic and diluted: Net income from continuing operations 111.4 158.7 Net loss from discontinued operations — (32.0 ) Net income attributable to controlling interest $ 111.4 $ 126.7 Participating share awards with dividend equivalent rights — — Net income available to common shareholders 111.4 126.7 Earnings allocated to participating share awards 1) — — Net income attributable to common shareholders $ 111.4 $ 126.7 Denominator: 1) Basic: Weighted average common stock 87.2 87.0 Add: Weighted average stock options/share awards 0.2 0.3 Diluted: 87.4 87.3 Basic EPS: Continuing operations $ 1.28 $ 1.82 Discontinued operations $ — $ (0.36 ) Basic EPS $ 1.28 $ 1.46 Diluted EPS: Continuing operations $ 1.27 $ 1.82 Discontinued operations $ — $ (0.37 ) Diluted EPS $ 1.27 $ 1.45 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Throughout the periods covered by the unaudited condensed consolidated financial statements, Autoliv purchased finished goods from Veoneer. Related party purchases from Veoneer amounted to approximately $18 million and $23 million for the three months ended March 31, 2019 and March 31, 2018, respectively. Autoliv also subleases certain office space to Veoneer. However, related party sublease income from Veoneer is not material for the three months ended March 31, 2019. Related party balances Amounts due to and due from related parties are summarized in the below table: As of Related party (Dollars in millions) March 31, 2019 December 31, 2018 Related party receivables $ 2.9 $ 15.0 Related party payables 34.5 50.7 Related party accrued expenses 13.8 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | There were no reportable events subsequent to March 31, 2019. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | Adoption of New Accounting Standards In August 2017, the FASB issued ASU 2017-12 , Derivative and Hedging (Topic 815), Targeted improvements to accounting for hedging activities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Balance Sheet (Dollars in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets Right-of-use asset, operating leases $ — $ 155.4 $ 155.4 Current liabilities Operating lease liabilities - current — 38.7 38.7 Non-current liabilities Operating lease liabilities - non-current — 116.7 116.7 Accounting Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Compensation-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 June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments |
Financial Instruments | The Company uses derivative financial instruments, “derivatives”, as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The 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 The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets. For the three months ended March 31, 2019 and March 31, 2018, the Company did not record any impairment charges on its long-lived assets for its continuing operations. |
Inventories | Inventories are stated at the lower of cost (principally FIFO) and net realizable value. |
Restructuring Provisions | Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. |
Contingent Liabilities | Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the |
New Accounting Standards (Table
New Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary of Impact of Adoption of New Accounting Standards | Balance Sheet (Dollars in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets Right-of-use asset, operating leases $ — $ 155.4 $ 155.4 Current liabilities Operating lease liabilities - current — 38.7 38.7 Non-current liabilities Operating lease liabilities - non-current — 116.7 116.7 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 unaudited Condensed Consolidated Statements of Income. The following table presents the financial results of Veoneer (dollars in millions). Three months ended March 31, 2019 March 31, 2018 Net sales $ — $ 571.9 Cost of sales — (453.0 ) Gross profit — 118.9 Selling, general and administrative expenses — (25.7 ) Research, development and engineering expenses, net — (105.2 ) Amortization of intangibles — (5.3 ) Other income (expense), net — (0.7 ) Operating loss — (18.0 ) Loss from equity method investments — (14.0 ) Interest expense — (0.1 ) Other non-operating items, net — 0.1 Loss before income taxes — (32.0 ) Income tax expense — (4.7 ) Loss from discontinued operations, net of income taxes — (36.7 ) Less: Net loss attributable to non-controlling interest — (4.7 ) Net loss from discontinued operations $ — $ (32.0 ) 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). Three months ended March 31, 2019 March 31, 2018 Depreciation $ — $ 22.6 Amortization of intangible assets — 5.3 Capital expenditures — 30.9 Acquisition in affiliate, net — 71.0 M/A-COM earn-out adjustment — (14.0 ) Undistributed loss from equity method investment — 14.0 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Cost | The following tables provide information about the Company’s leases: Lease cost (in millions) Three months ended March 31, 2019 Operating lease cost $ 12 Short-term lease cost 2 Variable lease cost 1 Sublease income (1 ) Total lease cost $ 14 |
Summary of Other Information | Other information (in millions) Three months ended or as of March 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 11 Right-of-use assets obtained in exchange for new operating lease liabilities 3 Weighted-average remaining lease term: - operating leases 7 years Weighted-average discount rate: - operating leases 2.7 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities (undiscounted cash flows) are as follows: (in millions) As of March 31, 2019 2019 (excluding the three months ended March 31, 2019) $ 32 2020 33 2021 22 2022 17 2023 15 Thereafter 45 Total operating lease payments 164 Less imputed interest (16 ) Total operating lease liabilities $ 148 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Continuing Operations Disaggregated by Primary Region and Products | In the following tables, revenue from the Company’s continuing operations is disaggregated by primary region and products. Net Sales by Products (Dollars in millions) Three months ended March 31, 2019 March 31, 2018 Airbag Products and Other 1) $ 1,447.7 $ 1,439.6 Seatbelt Products 1) 726.3 801.3 Total net sales $ 2,174.0 $ 2,240.9 1) Net Sales by Region (Dollars in millions) Three months ended March 31, 2019 March 31, 2018 China $ 330.4 $ 366.4 Japan 208.1 214.7 Rest of Asia 212.2 211.1 Americas 743.1 667.2 Europe 680.2 781.5 Total net sales $ 2,174.0 $ 2,240.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Derivative Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Continuing Operations | The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis for the continuing operations. March 31, 2019 Fair Value Measurements Description Nominal volume Derivative asset Derivative liability Balance sheet location Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 805.9 1) $ 1.2 2) $ 3.6 3) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 805.9 $ 1.2 $ 3.6 1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $801.3 million. 2) Net amount after deducting for offsetting swaps under ISDA agreements is $1.2 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $3.6 million. December 31, 2018 Fair Value Measurements Description Nominal volume Derivative asset Derivative liability Balance sheet location Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 659.1 1) $ 1.9 2) $ 1.1 3) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 659.1 $ 1.9 $ 1.1 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. |
Fair Value of Debt | The fair value and carrying value of debt for the continuing operations is summarized in the table below (dollars in millions). March 31, March 31, December 31, December 31, 2019 2019 2018 2018 Carrying Fair Carrying Fair value 1) value value 1) value Long-term debt U.S. Private placement $ 1,041.0 $ 1,096.6 $ 1,041.0 $ 1,061.1 Eurobond 557.1 561.0 568.0 567.8 Total $ 1,598.1 $ 1,657.6 $ 1,609.0 $ 1,628.9 Short-term debt Commercial paper $ 118.5 $ 118.5 $ 342.6 $ 342.6 Short-term portion of long-term debt 268.0 272.9 268.1 270.4 Overdrafts and other short-term debt 51.1 51.1 10.0 10.0 Total $ 437.6 $ 442.5 $ 620.7 $ 623.0 1) Debt as reported in balance sheet. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories for Continuing Operations | As of March 31, 2019 December 31, 2018 Raw materials $ 359.4 $ 370.9 Work in progress 282.7 277.4 Finished products 184.0 194.7 Inventories 826.1 843.0 Inventory valuation reserve (85.0 ) (85.1 ) Total inventories, net of reserve $ 741.1 $ 757.9 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Change in Balance Sheet Position of Employee Related Restructuring Reserves for Continuing Operations | The table below summarizes the change in the balance sheet position of the employee related restructuring reserves for the continuing operations (dollars in millions). Restructuring costs other than employee related are immaterial for all periods presented. Three months ended March 31, 2019 March 31, 2018 Reserve at beginning of the period $ 33.4 $ 39.6 Provision - charge 0.8 3.3 Provision - reversal (0.1 ) — Cash payments (5.1 ) (2.9 ) Translation difference (0.5 ) 1.1 Reserve at end of the period $ 28.5 $ 41.1 |
Product-Related Liabilities (Ta
Product-Related Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Change in Balance Sheet Position of Product-Related Liabilities Related to Continuing Operations | The table below summarizes the change in the balance sheet position of the product-related liabilities related to the continuing operations (dollars in millions). Three months ended March 31, 2019 March 31, 2018 Reserve at beginning of the period $ 62.2 $ 95.6 Change in reserve 2.9 (1.4 ) Cash payments (4.4 ) (14.5 ) Translation difference (0.2 ) 0.8 Reserve at end of the period $ 60.5 $ 80.5 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Pension Plans, Defined Benefit | |
Schedule of Components of Net Periodic Benefit Cost from Continuing Operations | The components of total Net Periodic Benefit Cost from continuing operations associated with the Company’s defined benefit retirement plans are as follows (dollars in millions): Three months ended March 31, 2019 March 31, 2018 Service cost $ 4.5 $ 4.9 Interest cost 5.2 4.7 Expected return on plan assets (3.9 ) (5.6 ) Amortization prior service cost 0.1 0.1 Amortization of actuarial loss 0.6 0.8 Net Periodic Benefit Cost $ 6.5 $ 4.9 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Equity Components | The changes in the equity components for the three month period ended March 31, 2019 were as follows (dollars in millions). Common stock Additional paid in capital Retained earnings Accumulated other comprehensive (loss) income Treasury stock Total parent shareholders' equity Non- controlling interest Total equity Balance at December 31, 2018 $ 102.8 $ 1,329.3 $ 2,041.8 $ (423.2 ) $ (1,167.0 ) $ 1,883.7 $ 13.1 $ 1,896.8 Comprehensive Income: Net income — — 111.4 — — 111.4 0.1 111.5 Foreign currency translation — — — 20.5 — 20.5 0.3 20.8 Net change in cash flow hedges — — — — — — — — Defined benefit pension plan — — — 0.1 — 0.1 — 0.1 Total Comprehensive Income — — 111.4 20.6 — 132.0 0.4 132.4 Stock-based compensation — — — — 1.6 1.6 — 1.6 Cash dividends declared — — (54.3 ) — — (54.3 ) — (54.3 ) Distribution to Veoneer — — (2.5 ) — — (2.5 ) — (2.5 ) Balance at March 31, 2019 $ 102.8 $ 1,329.3 $ 2,096.4 $ (402.6 ) $ (1,165.4 ) $ 1,960.5 $ 13.5 $ 1,974.0 |
Schedule of Components of Accumulated Comprehensive Income (Loss) | The following tables present details about components of accumulated comprehensive income (loss) for the three month periods ended March 31, 2019 and March 31, 2018 (dollars in millions). Three Months ended March 31, 2019 March 31, 2018 Equity attributable to Equity attributable to Controlling interest Non-controlling interest Total Controlling interest Non-controlling interest Total Balance at beginning of period $ 1,883.7 $ 13.1 $ 1,896.8 $ 4,035.1 $ 134.3 $ 4,169.4 Total Comprehensive Income: Net income (loss) 111.4 0.1 111.5 126.7 (4.3 ) 122.4 Foreign currency translation 20.5 0.3 20.8 85.8 5.8 91.6 Net change in cash flow hedges — — — 0.4 — 0.4 Defined benefit pension plan 0.1 — 0.1 0.6 — 0.6 Total Comprehensive Income 132.0 0.4 132.4 213.5 1.5 215.0 Common Stock incentives 1.6 — 1.6 8.6 — 8.6 Cash dividends declared (54.3 ) — (54.3 ) (54.2 ) — (54.2 ) Distribution of Veoneer (2.5 ) — (2.5 ) — — — Adjustment due to adoption of ASC 606 — — — 3.2 — 3.2 Balance at end of period $ 1,960.5 $ 13.5 $ 1,974.0 $ 4,206.2 $ 135.8 $ 4,342.0 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: (In millions, except per share amounts) Three months ended March 31, 2019 March 31, 2018 Numerator: Basic and diluted: Net income from continuing operations 111.4 158.7 Net loss from discontinued operations — (32.0 ) Net income attributable to controlling interest $ 111.4 $ 126.7 Participating share awards with dividend equivalent rights — — Net income available to common shareholders 111.4 126.7 Earnings allocated to participating share awards 1) — — Net income attributable to common shareholders $ 111.4 $ 126.7 Denominator: 1) Basic: Weighted average common stock 87.2 87.0 Add: Weighted average stock options/share awards 0.2 0.3 Diluted: 87.4 87.3 Basic EPS: Continuing operations $ 1.28 $ 1.82 Discontinued operations $ — $ (0.36 ) Basic EPS $ 1.28 $ 1.46 Diluted EPS: Continuing operations $ 1.27 $ 1.82 Discontinued operations $ — $ (0.37 ) Diluted EPS $ 1.27 $ 1.45 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. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Amounts Due to and Due from Related Party | Amounts due to and due from related parties are summarized in the below table: As of Related party (Dollars in millions) March 31, 2019 December 31, 2018 Related party receivables $ 2.9 $ 15.0 Related party payables 34.5 50.7 Related party accrued expenses 13.8 13.0 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Jun. 29, 2018$ / sharesshares | Mar. 31, 2019Segment |
Basis Of Presentation [Line Items] | ||
Number of reportable segments | Segment | 1 | |
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 |
New Accounting Standards - Addi
New Accounting Standards - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease asset | $ 147.3 | |
Operating lease liability | $ 148 | |
ASU 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease asset | $ 155.4 | |
Operating lease liability | $ 155.4 |
Summary Adoption of New Account
Summary Adoption of New Accounting Standard Impact on Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Assets | ||
Right-of-use asset, operating leases | $ 147.3 | |
Current liabilities | ||
Operating lease liabilities - current (Note 4) | 37 | |
Non-current liabilities | ||
Operating lease liabilities - non-current (Note 4) | $ 110.5 | |
ASU 2016-02 | ||
Assets | ||
Right-of-use asset, operating leases | $ 155.4 | |
Current liabilities | ||
Operating lease liabilities - current (Note 4) | 38.7 | |
Non-current liabilities | ||
Operating lease liabilities - non-current (Note 4) | 116.7 | |
ASU 2016-02 | Adjustments due to ASU 2016-02 | ||
Assets | ||
Right-of-use asset, operating leases | 155.4 | |
Current liabilities | ||
Operating lease liabilities - current (Note 4) | 38.7 | |
Non-current liabilities | ||
Operating lease liabilities - non-current (Note 4) | $ 116.7 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - Spin-off - Veoneer, Inc. - USD ($) $ in Millions | Jun. 29, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Spin-off completion date | Jun. 29, 2018 | |||
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 | |||
Additional contribution due to adjustment of deferred tax assets | $ 2.5 | |||
Other Income (Expense), Net | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Separation costs | $ 20 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Results of Discontinued Operations (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loss from discontinued operations, net of income taxes | $ (36.7) |
Less: Net loss attributable to non-controlling interest | (4.7) |
Net loss from discontinued operations | (32) |
Spin-off | Veoneer, Inc. | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net sales | 571.9 |
Cost of sales | (453) |
Gross profit | 118.9 |
Selling, general and administrative expenses | (25.7) |
Research, development and engineering expenses, net | (105.2) |
Amortization of intangibles | (5.3) |
Other income (expense), net | (0.7) |
Operating loss | (18) |
Loss from equity method investments | (14) |
Interest expense | (0.1) |
Other non-operating items, net | 0.1 |
Loss before income taxes | (32) |
Income tax expense | (4.7) |
Loss from discontinued operations, net of income taxes | (36.7) |
Less: Net loss attributable to non-controlling interest | (4.7) |
Net loss from discontinued operations | $ (32) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Significant Non-Cash Items of Discontinued Operations (Detail) - Spin-off - Veoneer, Inc. $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Depreciation | $ 22.6 |
Amortization of intangible assets | 5.3 |
Capital expenditures | 30.9 |
Acquisition in affiliate, net | 71 |
Undistributed loss from equity method investment | 14 |
M/A-COM | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Earn-out adjustment | $ (14) |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating Leased Assets [Line Items] | |
Operating lease,description | The Company has operating leases for offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment. |
Operating lease, existence of option to extend | true |
Operating lease, option to extend | options to extend the leases for up to 25 years |
Operating lease, existence of option to terminate | true |
Operating lease, option to terminate | options to terminate the leases within 1 year(s) |
Operating leases not yet commenced, description | As of March 31, 2019, the Company has additional operating leases, primarily for Warehousing, Cars and Other equipment that have not yet commenced of $5 million. These operating leases will commence during 2019 with lease terms of 1-8 years |
Lease, practical expedients, package | true |
Warehousing, Cars and Other Equipment | |
Operating Leased Assets [Line Items] | |
Operating leases not yet commenced, underlying value | $ 5 |
Minimum | |
Operating Leased Assets [Line Items] | |
Operating lease, lease terms | 1 year |
Operating leases not yet commenced, lease terms | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Operating lease, lease terms | 47 years |
Operating leases not yet commenced, lease terms | 8 years |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease Cost [Abstract] | |
Operating lease cost | $ 12 |
Short-term lease cost | 2 |
Variable lease cost | 1 |
Sublease income | (1) |
Total lease cost | $ 14 |
Leases - Summary of Other Infor
Leases - Summary of Other Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases Operating [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 11 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 3 |
Weighted-average remaining lease term: - operating leases | 7 years |
Weighted-average discount rate: - operating leases | 2.70% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 (excluding the three months ended March 31, 2019) | $ 32 |
2020 | 33 |
2021 | 22 |
2022 | 17 |
2023 | 15 |
Thereafter | 45 |
Total operating lease payments | 164 |
Less imputed interest | (16) |
Total operating lease liabilities | $ 148 |
Revenue from Continuing Operati
Revenue from Continuing Operations Disaggregated by Primary Region and Products (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 2,174 | $ 2,240.9 | |
China | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 330.4 | 366.4 | |
Japan | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 208.1 | 214.7 | |
Rest of Asia | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 212.2 | 211.1 | |
Americas | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 743.1 | 667.2 | |
Europe | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 680.2 | 781.5 | |
Airbag Products and Other | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | [1] | 1,447.7 | 1,439.6 |
Seatbelt Products | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | [1] | $ 726.3 | $ 801.3 |
[1] | Including Corporate and other sales. |
Derivative Financial Assets and
Derivative Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Continuing Operations (Detail) - Not Designated as Hedging Instrument - Fair Value, Measurements, Recurring - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | ||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | $ 805,900,000 | $ 659,100,000 | ||
Derivative asset | 1,200,000 | 1,900,000 | ||
Derivative liability | 3,600,000 | 1,100,000 | ||
Less Than Six Months | Foreign Exchange Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | 805,900,000 | [1] | 659,100,000 | [2] |
Less Than Six Months | Foreign Exchange Swaps | Other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset | 1,200,000 | [3] | 1,900,000 | [4] |
Less Than Six Months | Foreign Exchange Swaps | Other current liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | $ 3,600,000 | [5] | $ 1,100,000 | [6] |
[1] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $801.3 million. | |||
[2] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $659.1 million. | |||
[3] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.2 million. | |||
[4] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.9 million. | |||
[5] | Net amount after deducting for offsetting swaps under ISDA agreements is $3.6 million. | |||
[6] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.1 million. |
Derivative Financial Assets a_2
Derivative Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Continuing Operations (Parenthetical) (Detail) - Not Designated as Hedging Instrument - Foreign Exchange Swaps - Fair Value, Measurements, Recurring - Less Than Six Months - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative notional volume, amount after offsetting swaps | $ 801.3 | $ 659.1 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, amount after offsetting swaps | 1.2 | 1.9 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, amount after offsetting swaps | $ 3.6 | $ 1.1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset impairment charges | $ 0 | $ 0 | |
Not Designated as Hedging Instrument | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivatives designated as hedging instruments | 0 | $ 0 | |
Gains and losses recognized in other non-operating items, net | $ 3,200,000 | $ 900,000 |
Fair Value of Debt (Detail)
Fair Value of Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 1,598.1 | $ 1,609 |
Short-term debt | [1] | 437.6 | 620.7 |
Long-term debt, fair value | 1,657.6 | 1,628.9 | |
Short-term debt, fair value | 442.5 | 623 | |
Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 118.5 | 342.6 |
Short-term debt, fair value | 118.5 | 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 | 1,041 |
Long-term debt, fair value | 1,096.6 | 1,061.1 | |
Eurobond - Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 557.1 | 568 |
Long-term debt, fair value | 561 | 567.8 | |
Overdrafts and Other Short-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 51.1 | 10 |
Short-term debt, fair value | 51.1 | 10 | |
Short-Term Portion of Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 268 | 268.1 |
Short-term debt, fair value | $ 272.9 | $ 270.4 | |
[1] | Debt as reported in balance sheet. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Line Items] | ||
Effective income tax rate | 27.40% | 30.50% |
Increase/(decrease) in effective tax rate due to impact of discrete tax items | 0.50% | 3.30% |
Net increase to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years | $ 1.7 | |
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 56.1 | |
Current Tax Payable Within Other Current Liabilities | ||
Income Taxes [Line Items] | ||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 5.6 | |
Non-Current Tax Payable Within Other Non-current Liabilities | ||
Income Taxes [Line Items] | ||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | $ 50.5 |
Components of Inventories for C
Components of Inventories for Continuing Operations (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 359.4 | $ 370.9 |
Work in progress | 282.7 | 277.4 |
Finished products | 184 | 194.7 |
Inventories | 826.1 | 843 |
Inventory valuation reserve | (85) | (85.1) |
Total inventories, net of reserve | $ 741.1 | $ 757.9 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring reserve balance | $ 29 |
Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate cost for restructuring initiatives | 10 |
Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate cost for restructuring initiatives | 30 |
Western Europe Restructuring Activities | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate cost for restructuring initiatives | 107 |
Remaining restructuring liability | $ 25 |
Schedule of Changes in Balance
Schedule of Changes in Balance Sheet Position of Employee Related Restructuring Reserves for Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Reserve at end of the period | $ 29 | |
Restructuring employee-related | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserve at beginning of the period | 33.4 | $ 39.6 |
Provision - charge | 0.8 | 3.3 |
Provision - reversal | (0.1) | |
Cash payments | (5.1) | (2.9) |
Translation difference | (0.5) | 1.1 |
Reserve at end of the period | $ 28.5 | $ 41.1 |
Product-Related Liabilities - A
Product-Related Liabilities - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Accrued Expenses | |
Product Warranty Liability [Line Items] | |
Indemnification liabilities | $ 14 |
Summary of Change in Balance Sh
Summary of Change in Balance Sheet Position of Product-Related Liabilities Related to Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Product Warranties Disclosures [Abstract] | ||
Reserve at beginning of the period | $ 62.2 | $ 95.6 |
Change in reserve | 2.9 | (1.4) |
Cash payments | (4.4) | (14.5) |
Translation difference | (0.2) | 0.8 |
Reserve at end of the period | $ 60.5 | $ 80.5 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost from Continuing Operations (Detail) - Pension Plans, Defined Benefit - U.S. Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 4.5 | $ 4.9 |
Interest cost | 5.2 | 4.7 |
Expected return on plan assets | (3.9) | (5.6) |
Amortization prior service cost | 0.1 | 0.1 |
Amortization of actuarial loss | 0.6 | 0.8 |
Net Periodic Benefit Cost | $ 6.5 | $ 4.9 |
Summary of Changes in Equity Co
Summary of Changes in Equity Components (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | $ 1,896.8 | $ 4,169.4 |
Comprehensive Income: | ||
Net income | 111.5 | 122.4 |
Foreign currency translation | 20.8 | 91.6 |
Net change in cash flow hedges | 0.4 | |
Defined benefit pension plan | 0.1 | 0.6 |
Comprehensive income | 132.4 | 215 |
Stock-based compensation | 1.6 | |
Cash dividends declared | (54.3) | (54.2) |
Distribution to Veoneer | (2.5) | |
Balance at March 31, 2019 | 1,974 | 4,342 |
Common stock | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | 102.8 | |
Comprehensive Income: | ||
Balance at March 31, 2019 | 102.8 | |
Additional paid in capital | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | 1,329.3 | |
Comprehensive Income: | ||
Balance at March 31, 2019 | 1,329.3 | |
Retained earnings | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | 2,041.8 | |
Comprehensive Income: | ||
Net income | 111.4 | |
Comprehensive income | 111.4 | |
Cash dividends declared | (54.3) | |
Distribution to Veoneer | (2.5) | |
Balance at March 31, 2019 | 2,096.4 | |
Accumulated other comprehensive (loss) income | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | (423.2) | |
Comprehensive Income: | ||
Foreign currency translation | 20.5 | |
Defined benefit pension plan | 0.1 | |
Comprehensive income | 20.6 | |
Balance at March 31, 2019 | (402.6) | |
Treasury stock | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | (1,167) | |
Comprehensive Income: | ||
Stock-based compensation | 1.6 | |
Balance at March 31, 2019 | (1,165.4) | |
Total parent shareholders' equity | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | 1,883.7 | 4,035.1 |
Comprehensive Income: | ||
Net income | 111.4 | 126.7 |
Foreign currency translation | 20.5 | 85.8 |
Net change in cash flow hedges | 0.4 | |
Defined benefit pension plan | 0.1 | 0.6 |
Comprehensive income | 132 | 213.5 |
Stock-based compensation | 1.6 | |
Cash dividends declared | (54.3) | (54.2) |
Distribution to Veoneer | (2.5) | |
Balance at March 31, 2019 | 1,960.5 | 4,206.2 |
Non-controlling interest | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | 13.1 | 134.3 |
Comprehensive Income: | ||
Net income | 0.1 | (4.3) |
Foreign currency translation | 0.3 | 5.8 |
Comprehensive income | 0.4 | 1.5 |
Balance at March 31, 2019 | $ 13.5 | $ 135.8 |
Schedule of Components of Accum
Schedule of Components of Accumulated Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | $ 1,896.8 | $ 4,169.4 |
Total Comprehensive Income: | ||
Net income | 111.5 | 122.4 |
Foreign currency translation | 20.8 | 91.6 |
Net change in cash flow hedges | 0.4 | |
Defined benefit pension plan | 0.1 | 0.6 |
Comprehensive income | 132.4 | 215 |
Common Stock incentives | 1.6 | 8.6 |
Cash dividends declared | (54.3) | (54.2) |
Distribution of Veoneer | (2.5) | |
Balance at March 31, 2019 | 1,974 | 4,342 |
Controlling | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | 1,883.7 | 4,035.1 |
Total Comprehensive Income: | ||
Net income | 111.4 | 126.7 |
Foreign currency translation | 20.5 | 85.8 |
Net change in cash flow hedges | 0.4 | |
Defined benefit pension plan | 0.1 | 0.6 |
Comprehensive income | 132 | 213.5 |
Common Stock incentives | 1.6 | 8.6 |
Cash dividends declared | (54.3) | (54.2) |
Distribution of Veoneer | (2.5) | |
Balance at March 31, 2019 | 1,960.5 | 4,206.2 |
Noncontrolling Interest | ||
Minority Interest [Line Items] | ||
Balance at December 31, 2018 | 13.1 | 134.3 |
Total Comprehensive Income: | ||
Net income | 0.1 | (4.3) |
Foreign currency translation | 0.3 | 5.8 |
Comprehensive income | 0.4 | 1.5 |
Balance at March 31, 2019 | $ 13.5 | 135.8 |
ASU 2014-09 | ||
Total Comprehensive Income: | ||
Adjustment due to adoption of ASC 606 | 3.2 | |
ASU 2014-09 | Controlling | ||
Total Comprehensive Income: | ||
Adjustment due to adoption of ASC 606 | $ 3.2 |
Equity- Additional Information
Equity- Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | ||
Common shares repurchased | 0 | 0 |
Maximum number of shares that may yet be purchased | 2,986,288 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) € in Millions, Vehicle in Millions | Mar. 05, 2019USD ($) | Mar. 05, 2019EUR (€) | Nov. 22, 2017USD ($) | Nov. 22, 2017EUR (€) | Jun. 29, 2016VehicleClaim | Jun. 09, 2011Facility | Apr. 30, 2016Purchaser | Mar. 31, 2019USD ($)Defendant | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Loss Contingencies [Line Items] | ||||||||||||
Fine due period after investigation resolved | 90 days | |||||||||||
Number of defendants in antitrust class actions | 19 | |||||||||||
United States District Court for Eastern District of Michigan | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of pending antitrust class actions | 15 | |||||||||||
Ontario and Quebec Superior Court | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of pending antitrust class actions | 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 | |||||||||||
Litigation with European Commission | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of facilities visited | Facility | 2 | |||||||||||
Loss contingency, accrual | $ 203,000,000 | € 179 | $ 9,700,000 | € 8.1 | $ 210,000,000 | € 184 | $ 9,900,000 | € 8.3 | ||||
End-payor Settlement Class | United States District Court for Eastern District of Michigan | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of purchaser opt for end-payor class settlements | Purchaser | 1 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Stock Units And Performance Shares | ||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation cost | $ 1.1 | $ 2.3 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive shares | 54,000 | 0 |
Shares from treasury stock utilized by the Plan | 77,000 | 118,000 |
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 | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Basic and diluted: | |||
Net income from continuing operations | $ 111.4 | $ 158.7 | |
Net loss from discontinued operations | (32) | ||
Net income attributable to controlling interest | 111.4 | 126.7 | |
Net income available to common shareholders | 111.4 | 126.7 | |
Net income attributable to common shareholders | $ 111.4 | $ 126.7 | |
Denominator: | |||
Basic: Weighted average common stock | [1] | 87.2 | 87 |
Add: Weighted average stock options/share awards | [1] | 0.2 | 0.3 |
Diluted: | [1] | 87.4 | 87.3 |
Basic EPS: | |||
Continuing operations | [2] | $ 1.28 | $ 1.82 |
Discontinued operations | [2] | (0.36) | |
Basic earnings per share | 1.28 | 1.46 | |
Diluted EPS: | |||
Continuing operations | [2] | 1.27 | 1.82 |
Discontinued operations | [2] | (0.37) | |
Diluted earnings per share | $ 1.27 | $ 1.45 | |
[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 14 to the unaudited condensed consolidated financial statements). |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Veoneer, Inc. | ||
Related Party Transaction [Line Items] | ||
Purchases from related party | $ 18 | $ 23 |
Summary of Amounts Due to and D
Summary of Amounts Due to and Due from Related Party (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Related party receivables | $ 2.9 | $ 15 |
Related party payables | 34.5 | 50.7 |
Related party accrued expenses | $ 13.8 | $ 13 |