Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 22, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ALV | |
Security Exchange Name | NYSE | |
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 | |
Title of 12(b) Security | Common Stock (par value $1.00 per share) | |
Entity Common Stock, Shares Outstanding | 87,234,327 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-12933 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0378542 | |
Entity Address, Address Line One | Klarabergsviadukten 70, Section B7 | |
Entity Address, Address Line Two | Box 70381 | |
Entity Address, City or Town | Stockholm | |
Entity Address, Country | SE | |
Entity Address, Postal Zip Code | SE-107 24 | |
City Area Code | +46 8 | |
Local Phone Number | 587 20 600 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Income Statement [Abstract] | |||||
Net sales | $ 2,027.7 | $ 2,033 | $ 6,356.4 | $ 6,485.4 | |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | |
Cost of sales | $ (1,648.6) | $ (1,646.9) | $ (5,198.8) | $ (5,199.3) | |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | |
Gross profit | $ 379.1 | $ 386.1 | $ 1,157.6 | $ 1,286.1 | |
Selling, general and administrative expenses | (97.7) | (90) | (300.2) | (290.9) | |
Research, development and engineering expenses, net | (99.1) | (101.9) | (323.5) | (327.9) | |
Amortization of intangibles | (2.9) | (2.8) | (8.6) | (8.5) | |
Other income (expense), net | (25.6) | 1.1 | (28.8) | 6.2 | |
Operating income | 153.8 | 192.5 | 496.5 | 665 | |
Income from equity method investments | 0.4 | 0.2 | 1.6 | 2.8 | |
Interest income | 0.7 | 1.3 | 2.7 | 4.1 | |
Interest expense | (17.1) | (18.9) | (52.6) | (46.2) | |
Other non-operating items, net | (3.4) | (3.8) | (9.4) | (15.4) | |
Income from continuing operations before income taxes | 134.4 | 171.3 | 438.8 | 610.3 | |
Income tax expense | (48.4) | (53.3) | (131.9) | (140) | |
Net income from continuing operations | 86 | 118 | 306.9 | 470.3 | |
Loss from discontinued operations, net of income taxes (Note 3) | (195.8) | ||||
Net income | 86 | 118 | 306.9 | 274.5 | |
Less: Net income from continuing operations attributable to non- controlling interest | 0.6 | 0.5 | 1 | 1.4 | |
Less: Net loss from discontinued operations attributable to non- controlling interest | (8.3) | ||||
Net income attributable to controlling interest | 85.4 | 117.5 | 305.9 | 281.4 | |
Amounts attributable to controlling interest: | |||||
Net Income from continuing operations | 85.4 | 117.5 | 305.9 | 468.9 | |
Net Loss from discontinued operations (Note 3) | (187.5) | ||||
Net income attributable to controlling interest | $ 85.4 | $ 117.5 | $ 305.9 | $ 281.4 | |
Earnings per share continuing operations - basic | [1] | $ 0.98 | $ 1.35 | $ 3.51 | $ 5.38 |
Loss per share discontinued operations - basic | [1] | (2.15) | |||
Basic earnings per share | 0.98 | 1.35 | 3.51 | 3.23 | |
Earnings per share continuing operations - diluted | [1] | 0.98 | 1.34 | 3.50 | 5.37 |
Loss per share discontinued operations - diluted | [1] | (2.15) | |||
Diluted earnings per share | $ 0.98 | $ 1.34 | $ 3.50 | $ 3.22 | |
Weighted average number of shares outstanding, net of treasury shares (in millions) | [2] | 87.2 | 87.1 | 87.2 | 87.1 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | [2] | 87.3 | 87.4 | 87.4 | 87.3 |
Cash dividend per share – declared | $ 0.62 | $ 0.62 | $ 1.86 | $ 1.86 | |
Cash dividend per share – paid | $ 0.62 | $ 0.62 | $ 1.86 | $ 1.84 | |
[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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 86 | $ 118 | $ 306.9 | $ 274.5 |
Other comprehensive loss before tax: | ||||
Change in cumulative translation adjustments | (71.6) | (30) | (44.7) | (134.8) |
Net change in cash flow hedges | 1.1 | |||
Net change in unrealized components of defined benefit plans | 0 | 0.5 | 0.1 | 8 |
Other comprehensive loss, before tax | (71.6) | (29.5) | (44.6) | (125.7) |
Tax effect allocated to other comprehensive loss | 0 | (0.1) | 0 | (1.9) |
Other comprehensive loss, net of tax | (71.6) | (29.6) | (44.6) | (127.6) |
Comprehensive income (loss) | 14.4 | 88.4 | 262.3 | 146.9 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 0.1 | (0.6) | 0.6 | (7.6) |
Comprehensive income attributable to controlling interest | $ 14.3 | $ 89 | $ 261.7 | $ 154.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | $ 334.4 | $ 615.8 | |
Receivables, net | 1,653.5 | 1,652.1 | |
Inventories, net | 731.8 | 757.9 | |
Other current assets | 185.4 | 244.6 | |
Related party receivables (Note 15) | 3.7 | 15 | |
Total current assets | 2,908.8 | 3,285.4 | |
Property, plant and equipment, net | 1,747.9 | 1,690.1 | |
Investments and other non-current assets | 371.1 | 323.5 | |
Operating lease right-of-use assets (Note 4) | 154.1 | ||
Goodwill | 1,383.3 | 1,389.9 | |
Intangible assets, net | 24.3 | 32.7 | |
Total assets | 6,589.5 | 6,721.6 | |
Liabilities and equity | |||
Short-term debt | [1] | 289.9 | 620.7 |
Accounts payable | 890.4 | 978.3 | |
Accrued expenses | 839.6 | 935.4 | |
Other current liabilities | 228.3 | 267.4 | |
Related party liabilities (Note 15) | 18.9 | 63.7 | |
Operating lease liabilities - current (Note 4) | 37.7 | ||
Total current liabilities | 2,304.8 | 2,865.5 | |
Long-term debt | [1] | 1,815.1 | 1,609 |
Pension liability | 199.9 | 198.2 | |
Other non-current liabilities | 153.4 | 152.1 | |
Operating lease liabilities - non-current (Note 4) | 117 | ||
Total non-current liabilities | 2,285.4 | 1,959.3 | |
Common stock | 102.8 | 102.8 | |
Additional paid-in capital | 1,329.3 | 1,329.3 | |
Retained earnings | 2,182.3 | 2,041.8 | |
Accumulated other comprehensive loss | (467.4) | (423.2) | |
Treasury stock | (1,160.3) | (1,167) | |
Total controlling interest | 1,986.7 | 1,883.7 | |
Non-controlling interest | 12.6 | 13.1 | |
Total equity | 1,999.3 | 1,896.8 | |
Total liabilities and equity | $ 6,589.5 | $ 6,721.6 | |
[1] | Debt as reported in balance sheet. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income from continuing operations | $ 306.9 | $ 470.3 |
Net loss from discontinued operations | (195.8) | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 260.1 | 308.4 |
Separation costs | 11.5 | |
Other, net | 2.2 | 19.7 |
Net change in: | ||
EC antitrust payment | (203) | |
Net change in operating assets and liabilities | (37.8) | (312.9) |
Net cash provided by operating activities | 328.4 | 301.2 |
Investing activities | ||
Expenditures for property, plant and equipment | (360) | (425.2) |
Proceeds from sale of property, plant and equipment | 1.9 | 3.8 |
Acquisitions of businesses and interest in/additional contributions to affiliates, net of cash acquired | (72.9) | |
Net cash used in investing activities | (358.1) | (494.3) |
Financing activities | ||
Net (decrease) increase in short-term debt | (309.4) | 374.9 |
Issuance of long-term debt, net of discount | 243.5 | 582.2 |
Debt issuance cost | (0.3) | (2.6) |
Dividends paid | (162.7) | (160.7) |
Dividends paid to non-controlling interest | (1.1) | (2) |
Common stock options exercised | 0.3 | 8.2 |
Capital distribution to Veoneer | (971.8) | |
Net cash used in financing activities | (229.7) | (171.8) |
Effect of exchange rate changes on cash and cash equivalents | (22) | (60.9) |
Decrease in cash and cash equivalents | (281.4) | (425.8) |
Cash and cash equivalents at beginning of period | 615.8 | 959.5 |
Cash and cash equivalents at end of period | $ 334.4 | $ 533.7 |
CONSOLIDATED STATEMENTS OF TOTA
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total parent shareholders' equity | Non-controlling interest |
Balance at Dec. 31, 2017 | $ 4,169.4 | $ 102.8 | $ 1,329.3 | $ 4,079.2 | $ (287.5) | $ (1,188.7) | $ 4,035.1 | $ 134.3 |
Balance, shares at Dec. 31, 2017 | 87,000 | |||||||
Comprehensive Income: | ||||||||
Net income | 122.4 | 126.7 | 126.7 | (4.3) | ||||
Foreign currency translation adjustment | 91.5 | 85.7 | 85.7 | 5.8 | ||||
Net change in cash flow hedges | 0.4 | 0.4 | 0.4 | |||||
Pension liability | 0.6 | 0.6 | 0.6 | |||||
Comprehensive income (loss) | 214.9 | 126.7 | 86.7 | 213.4 | 1.5 | |||
Stock-based compensation | 8.6 | 8.6 | 8.6 | |||||
Cash dividends declared | (54.2) | (54.2) | (54.2) | |||||
Adjustment due to adoption of ASC/ASU | ASC 606 | 3.3 | 3.3 | 3.3 | |||||
Adjustment due to adoption of ASC/ASU | ASU 2018-02 | 10.2 | (10.2) | ||||||
Balance at Mar. 31, 2018 | 4,342 | $ 102.8 | 1,329.3 | 4,165.2 | (211) | (1,180.1) | 4,206.2 | 135.8 |
Balance, shares at Mar. 31, 2018 | 87,000 | |||||||
Balance at Dec. 31, 2017 | 4,169.4 | $ 102.8 | 1,329.3 | 4,079.2 | (287.5) | (1,188.7) | 4,035.1 | 134.3 |
Balance, shares at Dec. 31, 2017 | 87,000 | |||||||
Comprehensive Income: | ||||||||
Net income | 274.5 | |||||||
Comprehensive income (loss) | $ 146.9 | |||||||
Stock-based compensation, shares | 175 | |||||||
Balance at Sep. 30, 2018 | $ 2,053.4 | $ 102.8 | 1,329.3 | 2,189.7 | (411.6) | (1,169.8) | 2,040.4 | 13 |
Balance, shares at Sep. 30, 2018 | 87,000 | |||||||
Balance at Mar. 31, 2018 | 4,342 | $ 102.8 | 1,329.3 | 4,165.2 | (211) | (1,180.1) | 4,206.2 | 135.8 |
Balance, shares at Mar. 31, 2018 | 87,000 | |||||||
Comprehensive Income: | ||||||||
Net income | 34.1 | 37.2 | 37.2 | (3.1) | ||||
Foreign currency translation adjustment | (196.3) | (190.9) | (190.9) | (5.4) | ||||
Net change in cash flow hedges | 0.7 | 0.7 | 0.7 | |||||
Pension liability | 5.1 | 5.1 | 5.1 | |||||
Comprehensive income (loss) | (156.4) | 37.2 | (185.1) | (147.9) | (8.5) | |||
Stock-based compensation | 7.2 | 7.2 | 7.2 | |||||
Cash dividends declared | (54.2) | (54.2) | (54.2) | |||||
Dividends paid to non-controlling interest on subsidiary shares | (2) | (2) | ||||||
Distribution to Veoneer | (2,129) | (2,029.8) | 13 | (2,016.8) | (112.2) | |||
Balance at Jun. 30, 2018 | 2,007.6 | $ 102.8 | 1,329.3 | 2,118.4 | (383.1) | (1,172.9) | 1,994.5 | 13.1 |
Balance, shares at Jun. 30, 2018 | 87,000 | |||||||
Comprehensive Income: | ||||||||
Net income | 118 | 117.5 | 117.5 | 0.5 | ||||
Foreign currency translation adjustment | (30) | (28.9) | (28.9) | (1.1) | ||||
Pension liability | 0.4 | 0.4 | 0.4 | |||||
Comprehensive income (loss) | 88.4 | 117.5 | (28.5) | 89 | (0.6) | |||
Stock-based compensation | $ 3.1 | 3.1 | 3.1 | |||||
Stock-based compensation, shares | 9 | |||||||
Cash dividends declared | $ (54.1) | (54.1) | (54.1) | |||||
Distribution to Veoneer | 8.4 | 7.9 | 7.9 | 0.5 | ||||
Balance at Sep. 30, 2018 | 2,053.4 | $ 102.8 | 1,329.3 | 2,189.7 | (411.6) | (1,169.8) | 2,040.4 | 13 |
Balance, shares at Sep. 30, 2018 | 87,000 | |||||||
Balance at Dec. 31, 2018 | 1,896.8 | $ 102.8 | 1,329.3 | 2,041.8 | (423.2) | (1,167) | 1,883.7 | 13.1 |
Balance, shares at Dec. 31, 2018 | 87,100 | |||||||
Comprehensive Income: | ||||||||
Net income | 111.5 | 111.4 | 111.4 | 0.1 | ||||
Foreign currency translation adjustment | 20.8 | 20.5 | 20.5 | 0.3 | ||||
Pension liability | 0.1 | 0.1 | 0.1 | |||||
Comprehensive income (loss) | 132.4 | 111.4 | 20.6 | 132 | 0.4 | |||
Stock-based compensation | 1.6 | 1.6 | 1.6 | |||||
Stock-based compensation, shares | 100 | |||||||
Cash dividends declared | (54.3) | (54.3) | (54.3) | |||||
Distribution to Veoneer | (2.5) | (2.5) | (2.5) | |||||
Balance at Mar. 31, 2019 | 1,974 | $ 102.8 | 1,329.3 | 2,096.4 | (402.6) | (1,165.4) | 1,960.5 | 13.5 |
Balance, shares at Mar. 31, 2019 | 87,200 | |||||||
Balance at Dec. 31, 2018 | 1,896.8 | $ 102.8 | 1,329.3 | 2,041.8 | (423.2) | (1,167) | 1,883.7 | 13.1 |
Balance, shares at Dec. 31, 2018 | 87,100 | |||||||
Comprehensive Income: | ||||||||
Net income | 306.9 | |||||||
Comprehensive income (loss) | $ 262.3 | |||||||
Stock-based compensation, shares | 90 | |||||||
Balance at Sep. 30, 2019 | $ 1,999.3 | $ 102.8 | 1,329.3 | 2,182.3 | (467.4) | (1,160.3) | 1,986.7 | 12.6 |
Balance, shares at Sep. 30, 2019 | 87,200 | |||||||
Balance at Mar. 31, 2019 | 1,974 | $ 102.8 | 1,329.3 | 2,096.4 | (402.6) | (1,165.4) | 1,960.5 | 13.5 |
Balance, shares at Mar. 31, 2019 | 87,200 | |||||||
Comprehensive Income: | ||||||||
Net income | 109.4 | 109.1 | 109.1 | 0.3 | ||||
Foreign currency translation adjustment | 6.1 | 6.3 | 6.3 | (0.2) | ||||
Pension liability | 0 | 0 | 0 | |||||
Comprehensive income (loss) | 115.5 | 109.1 | 6.3 | 115.4 | 0.1 | |||
Stock-based compensation | 2.6 | 2.6 | 2.6 | |||||
Stock-based compensation, shares | 0 | |||||||
Cash dividends declared | (54.2) | (54.2) | (54.2) | |||||
Distribution to Veoneer | (0.2) | (0.2) | (0.2) | |||||
Balance at Jun. 30, 2019 | 2,037.7 | $ 102.8 | 1,329.3 | 2,151.1 | (396.3) | (1,162.8) | 2,024.1 | 13.6 |
Balance, shares at Jun. 30, 2019 | 87,200 | |||||||
Comprehensive Income: | ||||||||
Net income | 86 | 85.4 | 85.4 | 0.6 | ||||
Foreign currency translation adjustment | (71.6) | (71.1) | (71.1) | (0.5) | ||||
Pension liability | 0 | 0 | 0 | |||||
Comprehensive income (loss) | 14.4 | 85.4 | (71.1) | 14.3 | 0.1 | |||
Stock-based compensation | $ 2.5 | 2.5 | 2.5 | |||||
Stock-based compensation, shares | 2 | 0 | ||||||
Cash dividends declared | $ (54.2) | (54.2) | (54.2) | |||||
Dividends paid to non-controlling interest on subsidiary shares | (1.1) | (1.1) | ||||||
Balance at Sep. 30, 2019 | $ 1,999.3 | $ 102.8 | $ 1,329.3 | $ 2,182.3 | $ (467.4) | $ (1,160.3) | $ 1,986.7 | $ 12.6 |
Balance, shares at Sep. 30, 2019 | 87,200 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standards | 2. 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 The Company adopted ASU 2017-12 in the annual period beginning January 1, 2019. 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 , which requires measurement and recognition of expected credit losses for financial assets held and requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. ASU 2016-13 is effective for public business entities for annual periods beginning after December 15, 2019, and early adoption is permitted for annual periods beginning after December 15, 2018. The Company has a project team that is currently evaluating the impact of its pending adoption of ASU 2016-13 on the consolidated financial statements. The Company believes that the pending adoption of ASU 2016-13 will not have a material impact on the consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 3. DISCONTINUED OPERATIONS As discussed in Note 1. Basis of Presentation above, on June 29, 2018, the Company completed the spin-off of Veoneer and the requirements for the presentation of Veoneer as a discontinued operation were met on that date. Accordingly, Veoneer’s historical financial results are reflected in the Company’s 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 Consolidated Statements of Income. The following table presents the financial results of Veoneer (dollars in millions). Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net sales $ — $ — $ — $ 1,122.9 Cost of sales — — — (898.4 ) Gross profit — — — 224.5 Selling, general and administrative expenses — — — (59.7 ) Research, development and engineering expenses, net — — — (224.0 ) Amortization of intangibles — — — (10.5 ) Other income (expense), net — — — (53.4 ) Operating loss — — — (123.1 ) Loss from equity method investments — — — (29.9 ) Interest income — 0.7 Interest expense — — — (0.4 ) Other non-operating items, net — — — 0.5 Loss before income taxes — — — (152.2 ) Income tax expense — — — (43.6 ) Loss from discontinued operations, net of income taxes — — — (195.8 ) Less: Net loss attributable to non-controlling interest — — — (8.3 ) Net loss from discontinued operations $ — $ — $ — $ (187.5 ) The Company incurred $70.9 million in separation costs related to the spin-off of Veoneer for the nine months period ended September 30, 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 September 30, 2019. Veoneer Capital Contribution In connection with the spin-off, Autoliv capitalized Veoneer with approximately $1 billion of cash. Net assets of $2,129 million, including approximately $1 billion of cash, were transferred to Veoneer on or prior to the Distribution Date, including $13 million of accumulated other comprehensive loss (primarily related to pension and cumulative translation adjustment) and the non-controlling interest of $112 million. This resulted in a $2,030 million reduction to retained earnings. The following table presents depreciation, amortization, capital expenditures, acquisition of businesses and significant non-cash items of the discontinued operations related to Veoneer (dollars in millions). Nine months ended September 30, 2019 September 30, 2018 Depreciation $ — $ 44.8 Amortization of intangible assets — 10.5 Capital expenditures — 71.1 Acquisition in affiliate, net — 71.0 M/A-COM earn-out adjustment — (14.0 ) Undistributed loss from equity method investment — 29.9 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 4. 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. Finance lease right-of-use assets are presented together with other property, plant and equipment assets and finance lease liabilities are presented together with other short-term and long-term liabilities in the Condensed Consolidated Balance Sheets. However, the Company has not identified any material finance leases as of September 30, 2019. As of September 30, 2019, the Company has no additional material operating leases that have not yet commenced. 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. Since finance leases are not material the finance lease cost components have not been disclosed in the tables below. Lease cost (in millions) Three months ended Nine months ended September 30, 2019 September 30, 2019 Operating lease cost $ 12 $ 36 Short-term lease cost 2 5 Variable lease cost 1 3 Sublease income (1 ) (2 ) Total lease cost $ 14 $ 42 Other information (in millions) Nine months ended or as of September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 35 Right-of-use assets obtained in exchange for new operating lease liabilities 34 Weighted-average remaining lease term - operating leases 7 years Weighted-average discount rate - operating leases 2.4 % Maturities of operating lease liabilities (undiscounted cash flows) are as follows: (in millions) As of September 30, 2019 2019 (excluding the nine months ended September 30, 2019) $ 12 2020 $ 38 2021 $ 26 2022 $ 21 2023 $ 18 Thereafter $ 55 Total operating lease payments $ 170 Less imputed interest $ (15 ) Total operating lease liabilities $ 155 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 5. 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Airbag Products and Other 1) $ 1,349.3 $ 1,357.4 $ 4,232.7 $ 4,234.9 Seatbelt Products 1) 678.4 675.6 2,123.7 2,250.5 Total net sales $ 2,027.7 $ 2,033.0 $ 6,356.4 $ 6,485.4 1) Including Corporate and other sales. Net Sales by Region (Dollars in millions) Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 China $ 381.7 $ 351.9 $ 1,061.7 $ 1,103.5 Japan 202.4 196.3 601.6 606.4 Rest of Asia 193.6 200.9 622.8 623.6 Americas 713.1 684.8 2,214.2 2,034.3 Europe 536.9 599.1 1,856.1 2,117.6 Total net sales $ 2,027.7 $ 2,033.0 $ 6,356.4 $ 6,485.4 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 and nine months period ended September 30, 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 and nine months period ended September 30, 2019 is not material. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. 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 rates 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 rates 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 (dollars in millions). The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets at September 30, 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. September 30, 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 $ 864.2 1) $ 1.4 2) $ 7.3 3) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 864.2 $ 1.4 $ 7.3 1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $849.6 million. 2) Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $7.3 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 September 30, 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 September 30, 2019 and December 31, 2018 were foreign exchange swaps. For the three months ended September 30, 2019 and September 30, 2018, the gains and losses recognized in other non-operating items, net were a loss of $9.5 million and a gain of $1 million, respectively, for derivative instruments not designated as hedging instruments. For the nine months ended September 30, 2019 and September 30, 2018, the gains and losses recognized in other non-operating items, net were a loss of $6.9 million and a loss of $4.3 million, respectively, for derivative instruments not designated as hedging instruments. For the three and nine month periods ended September 30, 2019 and September 30, 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. In the table below “Bonds” relates to multiple USPP bonds and Euro denominated bonds. “Loans” relates to utilized long-term loan facilities. In June 2019, the Company issued a €100 million bond and utilized a SEK 1,200 million long term loan facility. The fair value and carrying value of debt for the continuing operations is summarized in the table below (dollars in millions). September 30, September 30, December 31, December 31, 2019 2019 2018 2018 Carrying value 1) Fair value Carrying value 1) Fair value Long-term debt Bonds $ 1,692.1 $ 1,788.1 $ 1,609.0 $ 1,628.9 Loans 122.5 122.3 — — Other long-term debt 0.5 0.5 — — Total $ 1,815.1 $ 1,910.9 $ 1,609.0 $ 1,628.9 Short-term debt Commercial paper $ 172.4 $ 172.4 $ 342.6 $ 342.6 Short-term portion of long-term debt 60.0 61.6 268.1 270.4 Overdrafts and other short-term debt 57.5 57.5 10.0 10.0 Total $ 289.9 $ 291.5 $ 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 and nine month periods ended September 30, 2019 and September 30, 2018, the Company did not record any impairment charges on its long-lived assets for its continuing operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES The effective tax rate in the third quarter of 2019 was 36.0% compared to 31.1% in the same quarter of 2018. Discrete tax items, net in the third quarter of 2019 had an unfavorable impact of 0.2%. In the third quarter of 2018, discrete tax items, net had an unfavorable impact of 0.2%. The effective tax rate for the first nine months of 2019 was 30.1% compared to 23.0% in the same period of 2018. Discrete tax items, net for the first nine months of 2019 had a favorable impact of 0.2%. In the same period of 2018, discrete tax items, net had a favorable impact of 5.3%. 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 September 30, 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 nine months of 2019, the Company recorded a net increase of $0.6 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 $57.3 million recorded at September 30, 2019, $0 million is classified as current tax payable within Other current liabilities and $57.3 million is classified as non-current tax payable within Other non-current liabilities on the Condensed Consolidated Balance Sheet. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. INVENTORIES Inventories are stated at the lower of cost (FIFO) and net realizable value. The components of inventories for the continuing operations were as follows (dollars in millions): As of September 30, 2019 December 31, 2018 Raw materials $ 372.2 $ 370.9 Work in progress 259.9 277.4 Finished products 183.3 194.7 Inventories 815.4 843.0 Inventory valuation reserve (83.6 ) (85.1 ) Total inventories, net of reserve $ 731.8 $ 757.9 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 9. 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 programs 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 provisions in the three and nine month periods ended September 30, 2019 of $27.7 million and $41.4 million, respectively , mainly relate to a global reduction in indirect labor pursuant to the Company’s restructuring program initiated in the second quarter of 2019 and is expected to be concluded in the second quarter of 2020. The majority of reduction and expense to date relates to restructuring activities in Europe and the Americas As of September 30, 2019, approximately $36 million out of the $50.8 million total reserve balance can be attributed to the indirect labor reduction program. The remaining balance relates to older restructuring programs, primarily in Western Europe, which is expected to be settled in 2021. 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 costs are immaterial for all periods presented. Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Reserve at beginning of the period $ 40.3 $ 36.0 $ 33.4 $ 39.6 Provision - charge 27.7 0.5 41.4 4.8 Provision - reversal (0.2 ) — (0.3 ) — Cash payments (15.2 ) (4.0 ) (21.7 ) (10.8 ) Translation difference (1.8 ) 0.0 (2.0 ) (1.1 ) Reserve at end of the period $ 50.8 $ 32.5 $ 50.8 $ 32.5 |
Product-Related Liabilities
Product-Related Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product-Related Liabilities | 10. 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 12. Contingent Liabilities below. For the three and nine month periods ended September 30, 2019 and September 30, 2018, provisions and cash paid primarily relate to recall and warranty related issues. The decrease in the reserve balance as of September 30, 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 September 30, 2019, the indemnification liabilities are approximately $9 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Reserve at beginning of the period $ 55.9 $ 93.3 $ 62.2 $ 95.6 Change in reserve 9.4 1.8 17.5 19.8 Cash payments (10.5 ) (12.9 ) (24.8 ) (32.6 ) Translation difference (0.6 ) (0.1 ) (0.7 ) (0.7 ) Reserve at end of the period $ 54.2 $ 82.1 $ 54.2 $ 82.1 |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 11. 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 and nine months ended September 30, 2019 and September 30, 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Service cost $ 4.5 $ 4.9 $ 13.5 $ 14.8 Interest cost 5.1 4.6 15.4 13.9 Expected return on plan assets (3.9 ) (5.6 ) (11.6 ) (16.8 ) Amortization of prior service cost 0.1 0.1 0.3 0.2 Amortization of actuarial loss 0.6 0.8 1.8 2.5 Net Periodic Benefit Cost $ 6.4 $ 4.8 $ 19.4 $ 14.6 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 and nine months ended September 30, 2019 compared to the same periods of the previous year is due to a lower assumed long-term rate of return on mainly the U.S. plan assets. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 12. CONTINGENT LIABILITIES Legal Proceedings Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in the future. ANTITRUST MATTERS Authorities in several jurisdictions 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 included, 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 final payment of the actual fine was made in June 2019. 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 Company has accrued an amount that is not material to the Company’s results of operations to resolve this issue. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plan | 13. STOCK INCENTIVE PLAN Eligible employees and non-employee directors of the Company participate in the Autoliv, Inc.1997 Stock Incentive Plan (the Plan) and received Autoliv stock-based awards which include stock options (SOs), restricted stock units (RSUs) and performance shares (PSs). In connection with the Veoneer spin-off, each outstanding Autoliv stock-based award as of June 29, 2018 (the Distribution Date) was converted to a stock award that has underlying shares of both Autoliv and Veoneer common stock. 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 $2 million and $5.6 million of stock-based compensation expense in continuing operations related to RSUs and PSs for the three and nine month periods ended September 30, 2019, respectively. During the three and nine month periods ended September 30, 2018, the Company recorded $2.3 million and $6.9 million, respectively, of stock-based compensation expense in continuing operations related to RSUs and PSs. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | 14. EARNINGS PER SHARE For the three month period ended September 30, 2019 and September 30, 2018, approximately 50 thousand and 0 thousand shares, respectively, were excluded from the computation of the diluted EPS, since the inclusion of these awards would be antidilutive. For the nine month period ended September 30, 2019 and September 30, 2018, approximately 54 thousand and 0 thousand shares, respectively, were excluded from the computation of the diluted EPS. During the three month period ended September 30, 2019 and September 30, 2018 approximately 2 thousand and 9 thousand shares of common stock from the treasury stock, respectively, were utilized by the Plan. During the nine month period ended September 30, 2019 and September 30, 2018 approximately 90 thousand and 175 thousand shares of common stock from the treasury stock, respectively, 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Numerator: Basic and diluted: Net income from continuing operations $ 85.4 $ 117.5 $ 305.9 $ 468.9 Net loss from discontinued operations — — — (187.5 ) Net income attributable to controlling interest 85.4 117.5 305.9 281.4 Participating share awards with dividend equivalent rights 0.0 0.0 0.0 0.0 Net income available to common shareholders 85.4 117.5 305.9 281.4 Earnings allocated to participating share awards 1) 0.0 0.0 0.0 0.0 Net income attributable to common shareholders $ 85.4 $ 117.5 $ 305.9 $ 281.4 Denominator: 1) Basic: Weighted average common stock 87.2 87.1 87.2 87.1 Add: Weighted average stock options/share awards 0.1 0.3 0.2 0.2 Diluted: 87.3 87.4 87.4 87.3 Basic EPS: Continuing operations $ 0.98 $ 1.35 $ 3.51 $ 5.38 Discontinued operations $ — $ — $ — $ (2.15 ) Basic EPS $ 0.98 $ 1.35 $ 3.51 $ 3.23 Diluted EPS: Continuing operations $ 0.98 $ 1.34 $ 3.50 $ 5.37 Discontinued operations $ — $ — $ — $ (2.15 ) Diluted EPS $ 0.98 $ 1.34 $ 3.50 $ 3.22 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 | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. 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 $17 million and $30 million for the three month periods ended September 30, 2019 and September 30, 2018, respectively, and to approximately $54 million and $73 million for the nine month periods ended September 30, 2019 and September 30, 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 September 30, 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) September 30, 2019 December 31, 2018 Related party receivables $ 3.7 $ 15.0 Related party payables 9.9 50.7 Related party accrued expenses 9.0 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 | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS There were no reportable events subsequent to September 30, 2019. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 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 The Company adopted ASU 2017-12 in the annual period beginning January 1, 2019. 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 , which requires measurement and recognition of expected credit losses for financial assets held and requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. ASU 2016-13 is effective for public business entities for annual periods beginning after December 15, 2019, and early adoption is permitted for annual periods beginning after December 15, 2018. The Company has a project team that is currently evaluating the impact of its pending adoption of ASU 2016-13 on the consolidated financial statements. The Company believes that the pending adoption of ASU 2016-13 will not have a material impact on the consolidated financial statements. |
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 rates 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 rates 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 and nine month periods ended September 30, 2019 and September 30, 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 (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 theadequacy 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. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 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) | 9 Months Ended |
Sep. 30, 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 Consolidated Statements of Income. The following table presents the financial results of Veoneer (dollars in millions). Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net sales $ — $ — $ — $ 1,122.9 Cost of sales — — — (898.4 ) Gross profit — — — 224.5 Selling, general and administrative expenses — — — (59.7 ) Research, development and engineering expenses, net — — — (224.0 ) Amortization of intangibles — — — (10.5 ) Other income (expense), net — — — (53.4 ) Operating loss — — — (123.1 ) Loss from equity method investments — — — (29.9 ) Interest income — 0.7 Interest expense — — — (0.4 ) Other non-operating items, net — — — 0.5 Loss before income taxes — — — (152.2 ) Income tax expense — — — (43.6 ) Loss from discontinued operations, net of income taxes — — — (195.8 ) Less: Net loss attributable to non-controlling interest — — — (8.3 ) Net loss from discontinued operations $ — $ — $ — $ (187.5 ) 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). Nine months ended September 30, 2019 September 30, 2018 Depreciation $ — $ 44.8 Amortization of intangible assets — 10.5 Capital expenditures — 71.1 Acquisition in affiliate, net — 71.0 M/A-COM earn-out adjustment — (14.0 ) Undistributed loss from equity method investment — 29.9 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Lease Cost | The following tables provide information about the Company’s leases. Since finance leases are not material the finance lease cost components have not been disclosed in the tables below. Lease cost (in millions) Three months ended Nine months ended September 30, 2019 September 30, 2019 Operating lease cost $ 12 $ 36 Short-term lease cost 2 5 Variable lease cost 1 3 Sublease income (1 ) (2 ) Total lease cost $ 14 $ 42 |
Summary of Other Information | Other information (in millions) Nine months ended or as of September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 35 Right-of-use assets obtained in exchange for new operating lease liabilities 34 Weighted-average remaining lease term - operating leases 7 years Weighted-average discount rate - operating leases 2.4 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities (undiscounted cash flows) are as follows: (in millions) As of September 30, 2019 2019 (excluding the nine months ended September 30, 2019) $ 12 2020 $ 38 2021 $ 26 2022 $ 21 2023 $ 18 Thereafter $ 55 Total operating lease payments $ 170 Less imputed interest $ (15 ) Total operating lease liabilities $ 155 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Airbag Products and Other 1) $ 1,349.3 $ 1,357.4 $ 4,232.7 $ 4,234.9 Seatbelt Products 1) 678.4 675.6 2,123.7 2,250.5 Total net sales $ 2,027.7 $ 2,033.0 $ 6,356.4 $ 6,485.4 1) Including Corporate and other sales. Net Sales by Region (Dollars in millions) Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 China $ 381.7 $ 351.9 $ 1,061.7 $ 1,103.5 Japan 202.4 196.3 601.6 606.4 Rest of Asia 193.6 200.9 622.8 623.6 Americas 713.1 684.8 2,214.2 2,034.3 Europe 536.9 599.1 1,856.1 2,117.6 Total net sales $ 2,027.7 $ 2,033.0 $ 6,356.4 $ 6,485.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 (dollars in millions). September 30, 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 $ 864.2 1) $ 1.4 2) $ 7.3 3) Other current assets/ Other current liabilities Total derivatives not designated as hedging instruments $ 864.2 $ 1.4 $ 7.3 1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $849.6 million. 2) Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million. 3) Net amount after deducting for offsetting swaps under ISDA agreements is $7.3 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). September 30, September 30, December 31, December 31, 2019 2019 2018 2018 Carrying value 1) Fair value Carrying value 1) Fair value Long-term debt Bonds $ 1,692.1 $ 1,788.1 $ 1,609.0 $ 1,628.9 Loans 122.5 122.3 — — Other long-term debt 0.5 0.5 — — Total $ 1,815.1 $ 1,910.9 $ 1,609.0 $ 1,628.9 Short-term debt Commercial paper $ 172.4 $ 172.4 $ 342.6 $ 342.6 Short-term portion of long-term debt 60.0 61.6 268.1 270.4 Overdrafts and other short-term debt 57.5 57.5 10.0 10.0 Total $ 289.9 $ 291.5 $ 620.7 $ 623.0 1) Debt as reported in balance sheet. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories for Continuing Operations | As of September 30, 2019 December 31, 2018 Raw materials $ 372.2 $ 370.9 Work in progress 259.9 277.4 Finished products 183.3 194.7 Inventories 815.4 843.0 Inventory valuation reserve (83.6 ) (85.1 ) Total inventories, net of reserve $ 731.8 $ 757.9 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 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 costs are immaterial for all periods presented. Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Reserve at beginning of the period $ 40.3 $ 36.0 $ 33.4 $ 39.6 Provision - charge 27.7 0.5 41.4 4.8 Provision - reversal (0.2 ) — (0.3 ) — Cash payments (15.2 ) (4.0 ) (21.7 ) (10.8 ) Translation difference (1.8 ) 0.0 (2.0 ) (1.1 ) Reserve at end of the period $ 50.8 $ 32.5 $ 50.8 $ 32.5 |
Product-Related Liabilities (Ta
Product-Related Liabilities (Tables) | 9 Months Ended |
Sep. 30, 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Reserve at beginning of the period $ 55.9 $ 93.3 $ 62.2 $ 95.6 Change in reserve 9.4 1.8 17.5 19.8 Cash payments (10.5 ) (12.9 ) (24.8 ) (32.6 ) Translation difference (0.6 ) (0.1 ) (0.7 ) (0.7 ) Reserve at end of the period $ 54.2 $ 82.1 $ 54.2 $ 82.1 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Service cost $ 4.5 $ 4.9 $ 13.5 $ 14.8 Interest cost 5.1 4.6 15.4 13.9 Expected return on plan assets (3.9 ) (5.6 ) (11.6 ) (16.8 ) Amortization of prior service cost 0.1 0.1 0.3 0.2 Amortization of actuarial loss 0.6 0.8 1.8 2.5 Net Periodic Benefit Cost $ 6.4 $ 4.8 $ 19.4 $ 14.6 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 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 Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Numerator: Basic and diluted: Net income from continuing operations $ 85.4 $ 117.5 $ 305.9 $ 468.9 Net loss from discontinued operations — — — (187.5 ) Net income attributable to controlling interest 85.4 117.5 305.9 281.4 Participating share awards with dividend equivalent rights 0.0 0.0 0.0 0.0 Net income available to common shareholders 85.4 117.5 305.9 281.4 Earnings allocated to participating share awards 1) 0.0 0.0 0.0 0.0 Net income attributable to common shareholders $ 85.4 $ 117.5 $ 305.9 $ 281.4 Denominator: 1) Basic: Weighted average common stock 87.2 87.1 87.2 87.1 Add: Weighted average stock options/share awards 0.1 0.3 0.2 0.2 Diluted: 87.3 87.4 87.4 87.3 Basic EPS: Continuing operations $ 0.98 $ 1.35 $ 3.51 $ 5.38 Discontinued operations $ — $ — $ — $ (2.15 ) Basic EPS $ 0.98 $ 1.35 $ 3.51 $ 3.23 Diluted EPS: Continuing operations $ 0.98 $ 1.34 $ 3.50 $ 5.37 Discontinued operations $ — $ — $ — $ (2.15 ) Diluted EPS $ 0.98 $ 1.34 $ 3.50 $ 3.22 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) | 9 Months Ended |
Sep. 30, 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) September 30, 2019 December 31, 2018 Related party receivables $ 3.7 $ 15.0 Related party payables 9.9 50.7 Related party accrued expenses 9.0 13.0 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Jun. 29, 2018$ / sharesshares | Sep. 30, 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 | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease asset | $ 154.1 | |
Operating lease liability | $ 155 | |
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 | Sep. 30, 2019 | Jan. 01, 2019 |
Assets | ||
Right-of-use asset, operating leases | $ 154.1 | |
Current liabilities | ||
Operating lease liabilities - current (Note 4) | 37.7 | |
Non-current liabilities | ||
Operating lease liabilities - non-current (Note 4) | $ 117 | |
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 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 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 | ||||
Contribution due to adjustment of deferred tax assets | $ 0.2 | $ 2.5 | |||
Other Income (Expense), Net | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Separation costs | $ 70.9 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Results of Discontinued Operations (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net sales | $ 1,122.9 |
Cost of sales | (898.4) |
Gross profit | 224.5 |
Selling, general and administrative expenses | (59.7) |
Research, development and engineering expenses, net | (224) |
Amortization of intangibles | (10.5) |
Other income (expense), net | (53.4) |
Operating loss | (123.1) |
Loss from equity method investments | (29.9) |
Interest income | 0.7 |
Interest expense | (0.4) |
Other non-operating items, net | 0.5 |
Loss before income taxes | (152.2) |
Income tax expense | (43.6) |
Loss from discontinued operations, net of income taxes | (195.8) |
Less: Net loss attributable to non-controlling interest | (8.3) |
Net loss from discontinued operations | $ (187.5) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Significant Non-Cash Items of Discontinued Operations (Detail) - Spin-off - Veoneer, Inc. $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Depreciation | $ 44.8 |
Amortization of intangible assets | 10.5 |
Capital expenditures | 71.1 |
Acquisition in affiliate, net | 71 |
Undistributed loss from equity method investment | 29.9 |
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) | 9 Months Ended |
Sep. 30, 2019 | |
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 |
Operating leases not yet commenced, description | As of September 30, 2019, the Company has no additional material operating leases that have not yet commenced. |
Lease, practical expedients, package | true |
Minimum | |
Operating Leased Assets [Line Items] | |
Operating lease, lease terms | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Operating lease, lease terms | 47 years |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 12 | $ 36 |
Short-term lease cost | 2 | 5 |
Variable lease cost | 1 | 3 |
Sublease income | (1) | (2) |
Total lease cost | $ 14 | $ 42 |
Leases - Summary of Other Infor
Leases - Summary of Other Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases Operating [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 35 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 34 |
Weighted-average remaining lease term - operating leases | 7 years |
Weighted-average discount rate - operating leases | 2.40% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 12 |
2020 | 38 |
2021 | 26 |
2022 | 21 |
2023 | 18 |
Thereafter | 55 |
Total operating lease payments | 170 |
Less imputed interest | (15) |
Total operating lease liabilities | $ 155 |
Revenue from Continuing Operati
Revenue from Continuing Operations Disaggregated by Primary Region and Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | $ 2,027.7 | $ 2,033 | $ 6,356.4 | $ 6,485.4 | |
China | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | 381.7 | 351.9 | 1,061.7 | 1,103.5 | |
Japan | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | 202.4 | 196.3 | 601.6 | 606.4 | |
Rest of Asia | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | 193.6 | 200.9 | 622.8 | 623.6 | |
Americas | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | 713.1 | 684.8 | 2,214.2 | 2,034.3 | |
Europe | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | 536.9 | 599.1 | 1,856.1 | 2,117.6 | |
Airbag Products and Other | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | [1] | 1,349.3 | 1,357.4 | 4,232.7 | 4,234.9 |
Seatbelt Products | |||||
Disaggregation Of Revenue [Line Items] | |||||
Net sales | [1] | $ 678.4 | $ 675.6 | $ 2,123.7 | $ 2,250.5 |
[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 ($) | Sep. 30, 2019 | Dec. 31, 2018 | ||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | $ 864,200,000 | $ 659,100,000 | ||
Derivative asset | 1,400,000 | 1,900,000 | ||
Derivative liability | 7,300,000 | 1,100,000 | ||
Less Than Six Months | Foreign Exchange Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | 864,200,000 | [1] | 659,100,000 | [2] |
Less Than Six Months | Foreign Exchange Swaps | Other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset | 1,400,000 | [3] | 1,900,000 | [4] |
Less Than Six Months | Foreign Exchange Swaps | Other current liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | $ 7,300,000 | [5] | $ 1,100,000 | [6] |
[1] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $849.6 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 $1.3 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 $7.3 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative notional volume, amount after offsetting swaps | $ 849.6 | $ 659.1 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, amount after offsetting swaps | 1.3 | 1.9 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, amount after offsetting swaps | $ 7.3 | $ 1.1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) € in Millions, kr in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019SEK (kr) | Dec. 31, 2018USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Long-term loan facility utilized | kr | kr 1,200 | ||||||
Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Asset impairment charges | $ 0 | $ 0 | $ 0 | $ 0 | |||
Bonds | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Bonds issued | € | € 100 | ||||||
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 | $ 0 | ||||
Gains and losses recognized in other non-operating items, net | $ (9,500,000) | $ 1,000,000 | $ (6,900,000) | $ (4,300,000) |
Fair Value of Debt (Detail)
Fair Value of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 1,815.1 | $ 1,609 |
Short-term debt | [1] | 289.9 | 620.7 |
Long-term debt, fair value | 1,910.9 | 1,628.9 | |
Short-term debt, fair value | 291.5 | 623 | |
Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 172.4 | 342.6 |
Short-term debt, fair value | 172.4 | 342.6 | |
Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 1,692.1 | 1,609 |
Long-term debt, fair value | 1,788.1 | 1,628.9 | |
Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 122.5 | |
Long-term debt, fair value | 122.3 | ||
Other Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 0.5 | |
Long-term debt, fair value | 0.5 | ||
Overdrafts and Other Short-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 57.5 | 10 |
Short-term debt, fair value | 57.5 | 10 | |
Short-Term Portion of Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 60 | 268.1 |
Short-term debt, fair value | $ 61.6 | $ 270.4 | |
[1] | Debt as reported in balance sheet. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Line Items] | ||||
Effective income tax rate | 36.00% | 31.10% | 30.10% | 23.00% |
Increase/(decrease) in effective tax rate due to impact of discrete tax items | (0.20%) | 0.20% | (0.20%) | 5.30% |
Net increase to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years | $ 0.6 | |||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | $ 57.3 | 57.3 | ||
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 | 0 | 0 | ||
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 | $ 57.3 | $ 57.3 |
Components of Inventories for C
Components of Inventories for Continuing Operations (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 372.2 | $ 370.9 |
Work in progress | 259.9 | 277.4 |
Finished products | 183.3 | 194.7 |
Inventories | 815.4 | 843 |
Inventory valuation reserve | (83.6) | (85.1) |
Total inventories, net of reserve | $ 731.8 | $ 757.9 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring reserve balance | $ 50.8 | $ 50.8 |
Indirect Labor Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Provision | 27.7 | 41.4 |
Total restructuring reserve balance | 36 | 36 |
Western Europe Restructuring Activities | ||
Restructuring Cost and Reserve [Line Items] | ||
Cash payments | $ 15.2 | $ 21.7 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Reserve at end of the period | $ 50.8 | $ 50.8 | ||
Restructuring employee-related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reserve at beginning of the period | 40.3 | $ 36 | 33.4 | $ 39.6 |
Provision - charge | 27.7 | 0.5 | 41.4 | 4.8 |
Provision - reversal | (0.2) | (0.3) | ||
Cash payments | (15.2) | (4) | (21.7) | (10.8) |
Translation difference | (1.8) | 0 | (2) | (1.1) |
Reserve at end of the period | $ 50.8 | $ 32.5 | $ 50.8 | $ 32.5 |
Product-Related Liabilities - A
Product-Related Liabilities - Additional Information (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Accrued Expenses | |
Product Warranty Liability [Line Items] | |
Indemnification liabilities | $ 9 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Product Warranties Disclosures [Abstract] | ||||
Reserve at beginning of the period | $ 55.9 | $ 93.3 | $ 62.2 | $ 95.6 |
Change in reserve | 9.4 | 1.8 | 17.5 | 19.8 |
Cash payments | (10.5) | (12.9) | (24.8) | (32.6) |
Translation difference | (0.6) | (0.1) | (0.7) | (0.7) |
Reserve at end of the period | $ 54.2 | $ 82.1 | $ 54.2 | $ 82.1 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 4.5 | $ 4.9 | $ 13.5 | $ 14.8 |
Interest cost | 5.1 | 4.6 | 15.4 | 13.9 |
Expected return on plan assets | (3.9) | (5.6) | (11.6) | (16.8) |
Amortization of prior service cost | 0.1 | 0.1 | 0.3 | 0.2 |
Amortization of actuarial loss | 0.6 | 0.8 | 1.8 | 2.5 |
Net Periodic Benefit Cost | $ 6.4 | $ 4.8 | $ 19.4 | $ 14.6 |
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 | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Sep. 30, 2019USD ($)Defendant | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Loss Contingencies [Line Items] | ||||||||||||
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock Units And Performance Shares | ||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock compensation cost | $ 2 | $ 2.3 | $ 5.6 | $ 6.9 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive shares | 50 | 0 | 54 | 0 |
Shares from treasury stock utilized by the Plan | 2 | 9 | 90 | 175 |
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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Basic and diluted: | |||||
Net income from continuing operations | $ 85.4 | $ 117.5 | $ 305.9 | $ 468.9 | |
Net loss from discontinued operations | (187.5) | ||||
Net income attributable to controlling interest | 85.4 | 117.5 | 305.9 | 281.4 | |
Participating share awards with dividend equivalent rights | 0 | 0 | 0 | 0 | |
Net income available to common shareholders | 85.4 | 117.5 | 305.9 | 281.4 | |
Earnings allocated to participating share awards | [1] | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | $ 85.4 | $ 117.5 | $ 305.9 | $ 281.4 | |
Denominator: | |||||
Basic: Weighted average common stock | [1] | 87.2 | 87.1 | 87.2 | 87.1 |
Add: Weighted average stock options/share awards | [1] | 0.1 | 0.3 | 0.2 | 0.2 |
Diluted: | [1] | 87.3 | 87.4 | 87.4 | 87.3 |
Basic EPS: | |||||
Continuing operations | [2] | $ 0.98 | $ 1.35 | $ 3.51 | $ 5.38 |
Discontinued operations | [2] | (2.15) | |||
Basic earnings per share | 0.98 | 1.35 | 3.51 | 3.23 | |
Diluted EPS: | |||||
Continuing operations | [2] | 0.98 | 1.34 | 3.50 | 5.37 |
Discontinued operations | [2] | (2.15) | |||
Diluted earnings per share | $ 0.98 | $ 1.34 | $ 3.50 | $ 3.22 | |
[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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Veoneer, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related party | $ 17 | $ 30 | $ 54 | $ 73 |
Summary of Amounts Due to and D
Summary of Amounts Due to and Due from Related Party (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Related party receivables | $ 3.7 | $ 15 |
Related party payables | 9.9 | 50.7 |
Related party accrued expenses | $ 9 | $ 13 |