Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 10, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ALV | ||
Entity Registrant Name | AUTOLIV, INC. | ||
Entity Central Index Key | 0001034670 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 87,362,501 | ||
Entity Public Float | $ 5,634 | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock (par value $1.00 per share) | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-12933 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0378542 | ||
Entity Address, Address Line One | Klarabergsviadukten 70, Section B7 | ||
Entity Address, Address Line Two | Box 70381 | ||
Entity Address, City or Town | Stockholm | ||
Entity Address, Country | SE | ||
Entity Address, Postal Zip Code | SE-107 24 | ||
City Area Code | +46 8 | ||
Local Phone Number | 587 20 600 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | D O O P Por t registrant’s i n t h t l t e 21 1 0-K T P x w n g Comm i ss i o w i th i 12 ay a |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Net sales | $ 7,447.4 | $ 8,547.6 | $ 8,678.2 | |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | ||
Cost of sales | (6,200.5) | $ (6,963.2) | $ (6,966.9) | |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | ||
Gross profit | 1,246.9 | $ 1,584.4 | $ 1,711.3 | |
Selling, general and administrative expenses | (389.2) | (398.9) | (390.3) | |
Research, development and engineering expenses, net | (375.5) | (405.5) | (412.6) | |
Amortization of intangibles | (10) | (11.5) | (11.3) | |
Other income (expense), net | (90.1) | (42.7) | (211.1) | |
Operating income | 382.1 | 725.8 | 686 | |
Income from equity method investment | 2.3 | 2 | 3.6 | |
Interest income | 4.6 | 3.6 | 6.9 | |
Interest expense | (73) | (69.5) | (66.1) | |
Other non-operating items, net | (24.8) | (13.5) | (18) | |
Income from continuing operations before income taxes | 291.2 | 648.4 | 612.4 | |
Income tax expense | (102.9) | (185.6) | (234.9) | |
Income from continuing operations | 188.3 | 462.8 | 377.5 | |
Loss from discontinued operations, net of income taxes | (193.8) | |||
Net income | [1] | 188.3 | 462.8 | 183.7 |
Less: Net income from continuing operations attributable to non-controlling interest | 1.4 | 1.3 | 1.6 | |
Less: Net loss from discontinued operations attributable to non-controlling interest | (8.3) | |||
Net income attributable to controlling interest | 186.9 | 461.5 | 190.4 | |
Amounts attributable to controlling interest: | ||||
Net income from continuing operations | 186.9 | 461.5 | 375.9 | |
Net loss from discontinued operations | (185.5) | |||
Net income attributable to controlling interest | $ 186.9 | $ 461.5 | $ 190.4 | |
Earnings per share continuing operations - basic | [2] | $ 2.14 | $ 5.29 | $ 4.32 |
Loss per share discontinuing operations - basic | [2] | (2.13) | ||
Basic earnings per share | 2.14 | 5.29 | 2.19 | |
Earnings per share continuing operations - diluted | [2] | 2.14 | 5.29 | 4.31 |
Loss per share discontinuing operations - diluted | [2] | (2.13) | ||
Diluted earnings per share | $ 2.14 | $ 5.29 | $ 2.18 | |
Weighted average number of shares outstanding, net of treasury shares (in millions) | [3] | 87.3 | 87.2 | 87.1 |
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions) | [3] | 87.5 | 87.4 | 87.3 |
Cash dividend per share - declared | [4] | $ 2.48 | $ 2.48 | |
Cash dividend per share - paid | $ 0.62 | $ 2.48 | $ 2.46 | |
[1] | See Note 15 for further details – includes tax effects where applicable. | |||
[2] | Participating share awards with the right to receive dividend equivalents are (under the two class method) excluded from the earnings per share calculation (see Note 2 2 in this Annual Report). | |||
[3] | The Company’s unvested RSUs and PSs, of which some included the right to receive non-forfeitable dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. | |||
[4] | On February 20, 2020, the Company declared a dividend of $0.62 per share for the second quarter of 2020. On April 2, 2020, the Company canceled its declared dividend for the second quarter of 2020. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | [1] | $ 188.3 | $ 462.8 | $ 183.7 |
Other comprehensive income (loss) before tax: | ||||
Change in cumulative translation adjustments | 96.9 | 2 | (150.2) | |
Net change in cash flow hedges | 0.9 | |||
Net change in unrealized components of defined benefit plans | 7.5 | (34.6) | 14.2 | |
Other comprehensive income (loss), before tax | 104.4 | (32.6) | (135.1) | |
Tax effect allocated to other comprehensive income (loss) | (1.5) | 6.8 | (4.1) | |
Other comprehensive income (loss), net of tax | 102.9 | (25.8) | (139.2) | |
Comprehensive income | [1] | 291.2 | 437 | 44.5 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 2.3 | 1.2 | (7.4) | |
Comprehensive income attributable to controlling interest | $ 288.9 | $ 435.8 | $ 51.9 | |
[1] | See Note 15 for further details – includes tax effects where applicable. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | $ 1,178.2 | $ 444.7 | |
Receivables, net | 1,819.6 | 1,623.9 | |
Inventories, net | 798.3 | 740.9 | |
Income tax receivable | 44.2 | 26.8 | |
Prepaid expenses | 163.6 | 134.6 | |
Related party receivable | 2 | 2.8 | |
Other current assets | 263.1 | 28.4 | |
Total current assets | 4,269 | 3,002.1 | |
Property, plant and equipment, net | 1,869.1 | 1,815.7 | |
Operating lease right-of-use assets | 140.8 | 156.8 | |
Goodwill | 1,398.1 | 1,387.9 | |
Intangible assets, net | 13.6 | 22.3 | |
Other non-current assets | 466.2 | 386.4 | |
Total assets | 8,156.8 | 6,771.2 | |
Liabilities and equity | |||
Short-term debt | [1] | 301.8 | 368.1 |
Accounts payable | 1,226.7 | 941 | |
Accrued expenses | 1,259.7 | 816.9 | |
Related party liabilities | 37.5 | 17.4 | |
Income tax payable | 97.3 | 38.8 | |
Operating lease liabilities, current | 37.3 | 37.8 | |
Other current liabilities | 186.6 | 190.2 | |
Total current liabilities | 3,146.9 | 2,410.2 | |
Long-term debt | [1] | 2,109.6 | 1,726.1 |
Pension liability | 248.2 | 240.2 | |
Operating lease liabilities, non-current | 103.3 | 119.4 | |
Other non-current liabilities | 125.7 | 152.9 | |
Total non-current liabilities | 2,586.8 | 2,238.6 | |
Commitments and contingencies | |||
Common stock | [2] | 102.8 | 102.8 |
Additional paid-in capital | 1,329.3 | 1,329.3 | |
Retained earnings | 2,471.1 | 2,283.5 | |
Accumulated other comprehensive loss | [3] | (346.9) | (448.9) |
Treasury stock (15.4 and 15.6 shares, respectively) | (1,147.4) | (1,157.5) | |
Total controlling interest’s equity | 2,408.9 | 2,109.2 | |
Non-controlling interest | 14.2 | 13.2 | |
Total equity | [4] | 2,423.1 | 2,122.4 |
Total liabilities and equity | $ 8,156.8 | $ 6,771.2 | |
[1] | Debt as reported in balance sheet. | ||
[2] | Number r s f y r tst r r f r v l y | ||
[3] | The components of Other Comprehensive Loss are net of any related income tax effects. | ||
[4] | See Note 15 for further details – includes tax effects where applicable. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Treasury stock, Shares | 15,400,000 | 15,600,000 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 102,800,000 | 102,800,000 |
Common stock, shares outstanding | 87,400,000 | 87,200,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income from continuing operations | $ 188.3 | $ 462.8 | $ 377.5 |
Loss from discontinued operations, net of income taxes | (193.8) | ||
Adjustments (non-cash items) to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 370.9 | 350.6 | 397.1 |
EC antitrust non-cash provision | 210 | ||
Deferred income taxes | (23.9) | (16) | 3 |
Loss from equity method investments, net of dividends | 0 | 4 | 31.9 |
Net change in operating capital: | |||
EC antitrust payment | (203) | ||
Receivables and other assets, gross | (414.7) | 25.4 | (48.4) |
Inventories, gross | (34) | 15.4 | (123.9) |
Accounts payable and accrued expenses | 671.7 | 35.7 | (37.8) |
Income taxes | 53.5 | (29.3) | (19.2) |
Other, net | 37.1 | (4.9) | (5.8) |
Net cash provided by operating activities | 848.9 | 640.7 | 590.6 |
Investing activities | |||
Expenditures for property, plant and equipment | (343.5) | (483.4) | (560) |
Proceeds from sale of property, plant and equipment | 3.9 | 7.3 | 5.2 |
Acquisition of businesses and interest in affiliates, net of cash acquired | (72) | ||
Other | (0.9) | ||
Net cash used in investing activities | (339.6) | (476.1) | (627.7) |
Financing activities | |||
Net (decrease) increase in short-term debt | (239.9) | (364.1) | 355.4 |
Increase in long-term debt | 1,177.1 | 243.5 | 582.2 |
Repayment of long-term debt | (722.5) | ||
Debt issuance costs | (0.3) | (2.6) | |
Dividends paid to non-controlling interest | (1.3) | (1.1) | (2.1) |
Dividends paid | (54.1) | (217) | (214.3) |
Common stock options exercised | 0.8 | 0.9 | 8.2 |
Capital contribution to Veoneer | (971.8) | ||
Net cash provided by (used in) financing activities | 160.1 | (338.1) | (245) |
Effect of exchange rate changes on cash and cash equivalents | 64.1 | 2.4 | (61.6) |
Increase (decrease) in cash and cash equivalents | 733.5 | (171.1) | (343.7) |
Cash and cash equivalents at beginning of year | 444.7 | 615.8 | 959.5 |
Cash and cash equivalents at end of year | $ 1,178.2 | $ 444.7 | $ 615.8 |
Consolidated Statements of Tota
Consolidated Statements of Total Equity - USD ($) shares in Millions, $ in Millions | Total | Revision of Prior Period, Accounting Standards Update, Adjustment | [1] | Common stock | Additional paid in capital | Retained earnings | Retained earningsRevision of Prior Period, Accounting Standards Update, Adjustment | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) incomeRevision of Prior Period, Accounting Standards Update, Adjustment | Treasury stock | Total parent shareholders' equity | Total parent shareholders' equityRevision of Prior Period, Accounting Standards Update, Adjustment | Non-controlling interest | |
Balance at Dec. 31, 2017 | $ 4,169.4 | [1] | $ 102.8 | $ 1,329.3 | $ 4,079.2 | $ (287.5) | $ (1,188.7) | $ 4,035.1 | $ 134.3 | |||||
Balance, shares at Dec. 31, 2017 | 102.8 | |||||||||||||
Comprehensive Income: | ||||||||||||||
Net income | 183.7 | [1] | 190.4 | 190.4 | (6.7) | |||||||||
Net change in cash flow hedges | 0.9 | [1] | 0.9 | 0.9 | ||||||||||
Foreign currency translation | (150.2) | [1] | (149.5) | (149.5) | (0.7) | |||||||||
Pension liability | 10.1 | [1] | 10.1 | 10.1 | ||||||||||
Balance at Dec. 31, 2018 | 1,896.8 | [1] | $ 102.8 | 1,329.3 | 2,041.8 | (423.2) | (1,167) | 1,883.7 | 13.1 | |||||
Balance (ASU 2014-09) at Dec. 31, 2018 | $ 3.3 | $ 3.3 | $ 3.3 | |||||||||||
Balance (ASU 2018-02) at Dec. 31, 2018 | 10.2 | $ (10.2) | ||||||||||||
Comprehensive Income: | ||||||||||||||
Comprehensive income | 44.5 | [1] | 51.9 | (7.4) | ||||||||||
Stock-based compensation | 21.7 | [1] | 21.7 | 21.7 | ||||||||||
Cash dividends declared | (216.7) | [1] | (216.7) | (216.7) | ||||||||||
Dividends paid to non-controlling interest on subsidiary shares | (2.2) | [1] | (2.2) | |||||||||||
Balance at Dec. 31, 2018 | 1,896.8 | [1] | $ 102.8 | 1,329.3 | 2,041.8 | (423.2) | (1,167) | 1,883.7 | 13.1 | |||||
Balance (ASU 2014-09) at Dec. 31, 2018 | $ 3.3 | 3.3 | $ 3.3 | |||||||||||
Balance (ASU 2018-02) at Dec. 31, 2018 | $ 10.2 | $ (10.2) | ||||||||||||
Comprehensive Income: | ||||||||||||||
Distribution of Veoneer | (2,122.9) | [1] | (2,024.3) | 13 | (2,011.3) | (111.6) | ||||||||
Other | (0.3) | [1] | (0.3) | (0.3) | ||||||||||
Balance, shares at Dec. 31, 2018 | 102.8 | |||||||||||||
Comprehensive Income: | ||||||||||||||
Net income | 462.8 | [1] | 461.5 | 461.5 | 1.3 | |||||||||
Foreign currency translation | 2 | [1] | 2.1 | 2.1 | (0.1) | |||||||||
Pension liability | (27.8) | [1] | (27.8) | (27.8) | ||||||||||
Balance at Dec. 31, 2019 | 2,122.4 | [1] | $ 102.8 | 1,329.3 | 2,283.5 | (448.9) | (1,157.5) | 2,109.2 | 13.2 | |||||
Comprehensive Income: | ||||||||||||||
Comprehensive income | 437 | [1] | 435.8 | 1.2 | ||||||||||
Stock-based compensation | 9.5 | [1] | 9.5 | 9.5 | ||||||||||
Cash dividends declared | (217.1) | [1] | (217.1) | (217.1) | ||||||||||
Dividends paid to non-controlling interest on subsidiary shares | (1.1) | [1] | (1.1) | |||||||||||
Balance at Dec. 31, 2019 | 2,122.4 | [1] | $ 102.8 | 1,329.3 | 2,283.5 | (448.9) | (1,157.5) | 2,109.2 | 13.2 | |||||
Comprehensive Income: | ||||||||||||||
Distribution of Veoneer | $ (2.7) | [1] | (2.7) | (2.7) | ||||||||||
Balance, shares at Dec. 31, 2019 | 87.2 | 102.8 | ||||||||||||
Comprehensive Income: | ||||||||||||||
Net income | $ 188.3 | [1] | 186.9 | 186.9 | 1.4 | |||||||||
Foreign currency translation | 96.9 | [1] | 96 | 96 | 0.9 | |||||||||
Pension liability | 6 | [1] | 6 | 6 | ||||||||||
Balance at Dec. 31, 2020 | 2,423.1 | [1] | $ 102.8 | 1,329.3 | 2,471.1 | (346.9) | (1,147.4) | 2,408.9 | 14.2 | |||||
Comprehensive Income: | ||||||||||||||
Comprehensive income | 291.2 | [1] | 288.9 | 2.3 | ||||||||||
Stock-based compensation | 10.8 | [1] | 0.7 | 10.1 | 10.8 | |||||||||
Dividends paid to non-controlling interest on subsidiary shares | (1.3) | [1] | (1.3) | |||||||||||
Balance at Dec. 31, 2020 | $ 2,423.1 | [1] | $ 102.8 | $ 1,329.3 | $ 2,471.1 | $ (346.9) | $ (1,147.4) | $ 2,408.9 | $ 14.2 | |||||
Balance, shares at Dec. 31, 2020 | 87.4 | 102.8 | ||||||||||||
[1] | See Note 15 for further details – includes tax effects where applicable. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation NATURE OF OPERATIONS Through its operating subsidiaries, Autoliv is a leading developer, manufacturer and supplier of safety systems to the automotive industry. The Company has a broad range of product offerings, primarily passive safety systems, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts and steering wheels. The Company is also a supplier of anti-whiplash systems and pedestrian protection systems. PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include Autoliv, Inc. and all companies over which Autoliv, Inc. directly or indirectly exercises control, which as a general rule means that the Company owns more than 50% of the voting rights. Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant to the VIE. All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. Investments in affiliated companies in which the Company exercises significant influence over the operations and financial policies, but does not control, are reported using the equity method of accounting. Generally, the Company owns between 20-50% of such investments. DISCONTINUED OPERATIONS On June 29, 2018 (the “Distribution Date”), Autoliv completed the spin-off of its former Electronics segment (the “spin-off”) through the distribution of all of the issued and outstanding stock of Veoneer, Inc. (“Veoneer”). In accordance with U.S. GAAP, the financial position and results of operations of the Electronics business are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. The sum of the individual earnings per share amounts from continuing operations and discontinued operations may not equal the total company earnings per share amounts due to rounding. The cash flows and comprehensive income related to the Electronics business have not been segregated and are included in the Consolidated Statements of Cash Flows and Comprehensive Income, respectively, for all comparison periods presented. With the exception of Note 3, the Notes to the Consolidated Financial Statements reflect the continuing operations of Autoliv. See Note 3, Discontinued Operations, below for additional information regarding discontinued operations. Responsibility for certain product, warranty and recall liabilities for Electronics products manufactured prior to April 1, 2018 was retained by Autoliv as provided in the Distribution Agreement between Autoliv and Veoneer. Certain amounts in prior year’s consolidated financial statements and related footnotes thereto have been reclassified, unless otherwise noted, to conform with the current year presentation as a result of the spin-off of Veoneer. SEGMENT REPORTING Prior to the spin-off, Autoliv had two reportable operating segments: Passive Safety and Electronics. After completion of the spin-off, Autoliv’s remaining business is comprised of passive safety products - principally airbags (including steering wheels and inflators) and seatbelts. In addition, as of August 1, 2019, Autoliv implemented a new organizational structure which has been considered when evaluating the operating and reportable segments in the Company after the spin-off. In accordance with ASC 280, Segment Reporting ASC 280 indicates that a component is an operating segment if it meets the following criteria: • It engages in business activities from which it may earn revenues and incur expenses. • Its operating results are regularly reviewed by the CODM to make decisions about resources to be allocated to the segment and assess its performance. • Its discrete financial information is available. The Company as a whole has met the definition of an operating segment as it engages in business activities from which it may earn revenues and incur expenses, the consolidated operating results are regularly reviewed by the CEO/CODM to allocate resources and assess performance, and discrete financial information is available. Additionally, as Autoliv supplies customers on a global basis it also manages the business on a global basis. Therefore, based on the above analysis, we have concluded that the Company is the single operating and reportable segment under ASC 280, Segment Reporting For more information on our segment, see Note 21. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies BUSINESS COMBINATIONS Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations EQUITY METHOD INVESTMENT Investments accounted for under the equity method, means that a proportional share of the equity method investment’s net income increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of Net Income, the proportional share of the net income (loss) is reported as Income from equity method investment. USE OF ESTIMATES The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of variable consideration for our contracts with customers, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and recalls, restructuring charges, uncertain tax positions, valuation allowances and legal proceedings. Actual results could differ from those estimates. REVENUE RECOGNITION In accordance with ASC 606, Revenue from Contracts with Customers In addition, from time to time, the Company may make payments to customers in connection with ongoing and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments unless the payment can be clearly linked to the future business. If the payments are capitalized, the amounts are amortized to revenue as the related goods are transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight before control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of goods and services The Company generates revenue from the sale of parts, which includes airbag and seatbelt products and components, to original equipment manufacturers (“OEMs”). The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration for each of the products, including any price concessions, is based on their stand-alone selling prices. The stand-alone selling prices are determined based on the cost-plus margin approach. The Company recognizes revenue for parts primarily at a point in time. For parts with revenue recognized at a point in time, the Company recognizes revenue upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically FOB shipping point). There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and a related asset and associated cost of goods sold and inventory. However, the financial impact of these contracts is immaterial considering the very short production cycles and limited inventory days on hand. The contract balances with customers, included in other current assets, amounted to $19.5 million as of December 31, 2020. The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e. price concessions). Customers typically pay for the parts based on customary business practices. GOVERNMENT GRANTS Generally, the Company receives grants related to assets or grants related to income. The Company account for government grants as follows depending on which category the grants fall into. Government grants connected to Capital Expenditure are offset against the capitalized costs of the asset in the balance sheet when: a) all performance obligations connected to the government grant have been fulfilled; and b) the cash has been received. Other government grants including those reimbursing expenses are recognized in the profit and loss when: a) all performance obligations connected to the government grant have been fulfilled; and b) the cash has been received. When the cash has been received but there are outstanding performance obligations connected to the government grants received, the cash received is recognized as other payables and offset against the capitalized costs when the outstanding performance obligations are fulfilled. RESEARCH, DEVELOPMENT AND ENGINEERING, NET (R,D&E) Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of expense reimbursements from contracts to perform engineering design and product development fulfillment activities related to the production of parts. Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. The aggregate amount of such assets is not significant in any period presented. Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer funded tooling is met or the criteria for capitalization as Property, Plant & Equipment (P,P&E) for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Income as Cost of sales. STOCK BASED COMPENSATION The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation - Stock Compensation INCOME TAXES Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or receivable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. The Company classifies deferred tax assets and liabilities as non-current in the Consolidated Balance Sheet. Tax assets and liabilities are not offset unless attributable to the same tax jurisdiction and netting is possible according to law and, as it relates to payables and receivables, expected to take place in the same period. Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax benefits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. EARNINGS PER SHARE The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). The Company’s unvested RSUs and PSs, of which some include the right to receive non-forfeitable dividend equivalents, are considered participating securities. The diluted EPS reflects the potential dilution that could occur if common stock was issued for awards under the Stock Incentive Plan and is calculated using the more dilutive method of either the two-class method or the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. For unvested restricted stock, assumed proceeds under the treasury stock method will include unamortized compensation cost and windfall tax benefits or shortfalls. Post spin-off assumed proceeds under the treasury stock method related to RSUs will only include unamortized compensation cost related to Autoliv employees holding Autoliv RSUs. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. For further details, see Notes 17 and 22. CASH EQUIVALENTS The Company considers all highly liquid investment instruments purchased with a maturity of three months or less to be cash equivalents. RECEIVABLES AND ALLOWANCE FOR EXPECTED CREDIT LOSSES In addition to continuing to individually assess overdue customer balances for expected credit losses, the Company has as of January 1, 2020 implemented a new methodology that reflects the expected credit losses on receivables considering both historical experience as well as forward looking assumptions. The method calculates the expected credit loss for a group of customers by using the customer groups’ average short-term default rates based on officially published credit ratings and the Company’s historical experience. These default rates are considered the Company’s best estimate of the customer’s ability to pay. The Company regularly reassess the customer group’s and the applied customer group’s default rates by using its best judgement when considering changes in customer’s credit ratings, customer’s historical payments and loss experience, current market and economic conditions and the Company’s expectations of future market and economic conditions. There can be no assurance that the amount ultimately realized for receivables will not be materially different than that assumed in the calculation of the allowance for expected credit losses. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES All derivatives are recognized at fair value. Hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. For further details on the Company’s financial instruments, see Notes 5 and 14. INVENTORIES The cost of inventories is computed according to the first-in first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company calculates provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment is recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life or the lease term. Amortization on capital leases is recognized with depreciation expense in the Consolidated Statements of Income over the shorter of the assets’ expected life or the lease contract term. Repairs and maintenance are expensed as incurred. LEASES In accordance with ASC 842, Leases 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 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. For further details on the Company’s leases, see Note 4. LONG-LIVED ASSET IMPAIRMENT The Company evaluates the carrying value and useful lives of long-lived assets, other than goodwill and intangible assets, when indications of impairment are evident or it is likely that the useful lives have decreased, in which case the Company depreciates the assets over the remaining useful lives. Impairment testing is primarily done by using the cash flow method based on undiscounted future cash flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the respective carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the carrying amounts of the long-lived asset are considered recoverable and an impairment cannot be recorded. However, if the carrying amount of a group of assets exceeds the undiscounted cash flows, an entity must then measure the long-lived assets’ fair value to determine whether an impairment loss should be recognized, generally using a discounted cash flow model. GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized but subject to at least an annual review for impairment. Other intangible assets, principally related to acquired technology, are amortized over their useful lives which range from 3 to 25 years. The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. In 2018 and 2019, the Company opted to use a qualitative assessment for impairment testing. The qualitative assessment permits the Company to assess whether it is more than likely than not (i.e. a likelihood of greater than 50%) that goodwill or an indefinite-lived intangible asset is impaired. If the Company concludes based on the qualitative assessment that it is not more likely than not that the fair value of goodwill or an indefinite-lived intangible asset is less than its carrying amount, it would not have to quantitatively determine the asset’s fair value. In conducting its qualitative impairment testings in 2018 and 2019, the Company used the fair value calculation performed in 2017 for its goodwill as the starting point. The Company also considered external factors that could affect the significant inputs used to determine fair value. In 2020 the company performed a quantitative impairment testing by calculating the fair value of its goodwill. The estimated fair market value of goodwill is determined by the discounted cash flow method. The Company discounts projected operating cash flows using its weighted average cost of capital. Estimating the fair value requires the Company to make judgments about appropriate discount rates, growth rates, relevant comparable company earnings multiples and the amount and timing of expected future cash flows. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its estimated fair value, an impairment loss is recognized for the excess of carrying amount over the fair value of the respective reporting unit. To supplement this analysis, the Company compares the market value of its equity, calculated by reference to the quoted market prices of its shares, with the book value of its equity. There were no impairments of goodwill from 2018 through 2020. WARRANTIES AND RECALLS The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs are estimated based on the expected cost of replacing the product and the customer´s cost of carrying out the recall, which is affected by the number of vehicles subject to recall and the cost of labor and materials to remove and replace the defective product . Insurance receivables, related to recall issues covered by the insurance, are included within other current and non-current assets in the Consolidated Balance Sheet s . Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. RESTRUCTURING PROVISIONS The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. Estimates of restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates that restructuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. PENSION OBLIGATIONS The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefits that each employee will receive for services performed during a specified period of employment. The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any) (see Note 19). CONTINGENT LIABILITIES Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters (see Note 18). The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. The Company records liabilities for claims, lawsuits and proceedings when they are probable and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. The Company believes, based on currently available information, that the resolution of outstanding matters, other than any antitrust related matters described in Note 18, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. TRANSLATION OF NON-U.S. SUBSIDIARIES The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. The Statements of Income of these subsidiaries is translated into U.S. dollars using the average exchange rates for the year. Translation differences are reflected in equity as a component of OCI. RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES Receivables and liabilities not denominated in functional currencies are converted at year-end exchange rates. Net transaction losses, reflected in the Consolidated Statements of Income amounted to $(23.9) million in 2020, $(15.3) million in 2019 and $(22.1) million in 2018, and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other non-operating items, net if they relate to financial receivables and liabilities. NEW ACCOUNTING STANDARDS Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (ASC). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. Adoption of New Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting Accounting Standards Issued But Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes RECLASSIFICATIONS Certain prior-year amounts have been reclassified to conform to current year presentation. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations As discussed in Note 1, Basis of Presentation, on June 29, 2018, the Company completed the spin-off of Veoneer and the requirements for the presentation of Veoneer as a discontinued operation were met on that date. Accordingly, Veoneer’s historical financial results are reflected in the Company’s Consolidated Financial Statements as discontinued operations. The Company did not allocate any general corporate overhead or interest expense to discontinued operations. The financial results of Veoneer are presented as loss from discontinued operations, net of income taxes in the Consolidated Statements of Income. The following table presents the financial results of Veoneer for the year 2018 (dollars in millions). Years ended December 31, 2018 Net sales $ 1,122.9 Cost of sales (896.4 ) Gross profit 226.5 Selling, general and administrative expenses (59.7 ) Research, development and engineering expenses, net (224.0 ) Goodwill, Impairment charge — Amortization of intangibles (10.5 ) Other income (expense), net (53.4 ) Operating loss (121.1 ) 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 (150.2 ) Income tax (expense) benefit (43.6 ) Loss from discontinued operations, net of income taxes (193.8 ) Less: Net loss attributable to non-controlling interest (8.3 ) Net loss from discontinued operations $ (185.5 ) The Company incurred $76.3 million in separation costs related to the spin-off of Veoneer for 2018 and was reported in Other income (expense), net. These costs are primarily related to professional fees associated with planning the spin-off, as well as spin-off activities within finance, tax, legal and information system functions and certain investment banking fees incurred upon the completion of the spin-off. Veoneer Capital Contribution In connection with the spin-off, Autoliv capitalized Veoneer with approximately $1 billion of cash. Net assets of $2,129 million 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 for the year 2018 (dollars in millions). Years ended December 31, 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 | 12 Months Ended |
Dec. 31, 2020 | |
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 1-46 years 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 Consolidated Balance Sheets. The Company has not identified any material finance leases as of December 31, 2020. As of December 31, 2020, the Company has no additional material operating leases that have not yet commenced. 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) Year ended December 31 2020 2019 Operating lease cost $ 45.9 $ 48.5 Short-term lease cost 8.2 6.8 Variable lease cost 2.3 3.6 Sublease income (1.6 ) (2.4 ) Total lease cost $ 54.8 $ 56.5 Other information (in millions) Year ended or as of December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 46.3 $ 47.6 Right-of-use assets obtained in exchange for new operating lease liabilities 48.0 55.9 Weighted-average remaining lease term - operating leases 6 years 7 years Weighted-average discount rate - operating leases 1.9 % 2.3 % Maturities of operating lease liabilities (undiscounted cash flows) are as follows: (in millions) Maturities 2021 $ 37.8 2022 30.6 2023 22.6 2024 16.3 2025 12.7 Thereafter 30.0 Total operating lease payments 150.0 Less imputed interest (9.4 ) Total operating lease liabilities $ 140.6 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS The carrying value of cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and short-term debt approximate their fair value because of the short-term maturity of these instruments. The Company uses derivative financial instruments, “derivatives”, as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quote d prices or for which fair val ue can be measured from actively quoted prices g enerally will have a higher de gree of pricing observability and a lesser degree of judgment utiliz ed in measur ing fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degre e of judgment utilized in meas uring fair value. Under U.S. GAAP, there is a disclosure framework hierarchy associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The Company’s derivatives are all classified as Level 2 of the fair value hierarchy. The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis for the continuing operations as of December 31, 2020 and December 31, 2019. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at December 31, 2020 and December 31, 2019 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 choose not to offset are presented below. DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS There were no derivatives designated as hedging instruments as of December 31, 2020 and December 31, 2019 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 December 31, 2020 and December 31, 2019 were foreign exchange swaps. For 2020, the gains and losses recognized in other non-operating items, net are a gain of $18.5 million for derivative instruments not designated as hedging instruments. For 2019, the Company recognized a gain of $3.5 million in other non-operating items, net for derivative instruments not designated as hedging instruments. For 2018, the Company recognized a loss of $1.5 million in other non-operating items, net for derivative instruments not designated as hedging instruments. DECEMBER 31, 2020 DECEMBER 31, 2019 Fair Value Measurements Fair Value Measurements Derivative asset Derivative liability Derivative asset Derivative liability Nominal (Other current (Other current Nominal (Other current (Other current Description volume assets) liabilities) volume assets) liabilities) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign exchange swaps, less than 6 months $ 1,462.7 1) $ 25.2 2) $ 2.7 3) $ 934.2 4) $ 6.0 5) $ 1.8 6) TOTAL DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS $ 1,462.7 $ 25.2 $ 2.7 $ 934.2 $ 6.0 $ 1.8 1 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $1,462.7 million. 2 ) Net amount after deducting for offsetting swaps under ISDA agreements is $25.2 million. 3 ) Net amount after deducting for offsetting swaps under ISDA agreements is $2.7 million. 4 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $860.6 million. 5 ) Net amount after deducting for offsetting swaps under ISDA agreements is $5.8 million. 6 ) Net amount after deducting for offsetting swaps under ISDA agreements is $1.6 million. FAIR VALUE OF DEBT The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The fair value and carrying value of debt is summarized in the table below. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy. The fair value and carrying value of debt for the continuing operations are summarized in the table below (dollars in millions). DECEMBER 31, 2020 DECEMBER 31, 2019 CARRYING VALUE 1) FAIR VALUE CARRYING VALUE 1) FAIR VALUE LONG-TERM DEBT Bonds $ 1,376.5 $ 1,483.4 $ 1,597.5 $ 1,671.1 Loans 732.5 752.9 128.6 128.6 Other long-term debt 0.6 0.6 — — TOTAL $ 2,109.6 $ 2,236.9 $ 1,726.1 $ 1,799.7 SHORT-TERM DEBT Commercial paper $ — $ — $ 230.7 $ 230.7 Short-term portion of long-term debt 275.0 278.5 112.0 112.1 Overdrafts and other short-term debt 26.8 26.8 25.4 25.3 TOTAL $ 301.8 $ 305.3 $ 368.1 $ 368.1 1) Debt as reported in balance sheet. ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment. The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets as of the reporting date, 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 period 2018-2020, the Company did not record any material impairment charges on its long-lived assets for its continuing operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes INCOME BEFORE INCOME TAXES 2020 2019 2018 U.S. $ (101.5 ) $ 66.5 $ 47.0 Non-U.S. 392.7 581.9 565.4 Total $ 291.2 $ 648.4 $ 612.4 PROVISION FOR INCOME TAXES 2020 2019 2018 Current U.S. federal $ (40.6 ) $ 18.6 $ 31.6 Non-U.S. 168.8 178.2 192.7 U.S. state and local (1.5 ) 4.8 10.1 Deferred U.S. federal (5.5 ) (2.8 ) 0.8 Non-U.S. (16.5 ) (12.6 ) (0.2 ) U.S. state and local (1.8 ) (0.6 ) (0.1 ) Total income tax expense $ 102.9 $ 185.6 $ 234.9 EFFECTIVE INCOME TAX RATE 2020 2019 2018 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Non-Deductible Expenses 3.0 0.3 1.4 Foreign tax rate variances 8.4 4.1 5.5 Tax credits (3.2 ) (1.7 ) (3.9 ) Change in Valuation Allowances — — (3.2 ) Current year losses with no benefit 7.1 0.2 0.5 Net operating loss carry-forwards — (0.1 ) (0.1 ) Changes in tax reserves 1.7 1.7 3.4 Provision to Return (8.8 ) (2.3 ) (0.3 ) Earnings of equity investments (0.2 ) (0.1 ) (0.1 ) Withholding taxes 8.5 2.4 3.5 State taxes, net of federal benefit (0.7 ) 0.4 1.1 Antitrust settlement — — 9.9 U.S. FDII Deduction — (0.5 ) — U.S. GILI Tax — 1.8 1.7 Other, net (1.5 ) 1.4 (2.0 ) Effective income tax rate 35.3 % 28.6 % 38.4 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. On December 31, 2020, the Company had net operating loss carryforwards (NOL’s) of approximately $328 million, of which approximately $321 million have no expiration date. The remaining losses expire on various dates through 2025. The Company also has $25 million of U.S. Foreign Tax Credit carry forwards, which begin to expire in 2026. Valuation allowances have been established which partially offset the related deferred assets. Such allowances are primarily provided against NOL’s of companies that have perennially incurred losses, as well as the NOL’s of companies that are start-up operations and have not established a pattern of profitability. The Company assesses all available evidence, both positive and negative, to determine the amount of any required valuation allowance. The foreign tax rate variance reflects the fact that approximately two-thirds of the Company’s non-U.S. pre-tax income is generated by business operations located in tax jurisdictions where the tax rate is between 20-30%. The tax rate from quarter to quarter and from year to year is also impacted by the mix of earnings and tax rates in various jurisdictions compared to the same periods or prior years. The Company has reserves for income taxes that may become payable in future periods as a result of tax audits. These reserves represent the Company’s best estimate of the potential liability for tax exposures. Inherent uncertainties exist in estimates of tax exposures due to changes in tax law, both legislated and concluded through the various jurisdictions’ court systems. The Company files income tax returns in the United States federal jurisdiction, and various states and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions, covering multiple years. The Company is no longer subject to income tax examination by the U.S. Federal tax authorities for years prior to 2015. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2010. The Company is undergoing tax audits in several non-U.S. jurisdictions and several U.S. state jurisdictions, covering multiple years. As of December 31, 2020, as a result of those tax examinations, the Company is not aware of any proposed income tax adjustments that would have a material impact on the Company’s financial statements, however, other audits could result in additional increases or decreases to the unrecognized tax benefits in some future period or periods. The Company recognizes interest and potential penalties accrued related to unrecognized tax benefits in tax expense. As of December 31, 2019, the Company had recorded $65.4 million for unrecognized tax benefits related to prior years, including $8.2 million of accrued interest and penalties. During 2020, the Company recorded a net increase of $0.5 million to income tax reserves for unrecognized tax benefits related to tax positions taken in prior years and reclassified $24.0 million to contra-deferred tax asset to offset excess foreign tax credit carryforwards.. Also during 2020, the Company recorded a net increase of $4.2 million to income tax reserves for unrecognized tax benefits based on tax positions taken in the current year. The Company had $ million accrued for the payment of interest and penalties as of December 31, 2020 . Of the total unrecognized tax benefits of $ million recorded at December 31, 2020 , $ million is classified as current income tax payable, and $ million is classified as non-curre nt tax payable included in Oth er Non-Current Liabilities on the Consolidated Balance Sheets. Substantially all of these reserves would impact the effective tax rate if released into income. The following table summarizes the activity related to the Company’s unrecognized tax benefits: UNRECOGNIZED TAX BENEFITS 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 59.0 $ 49.6 $ 29.6 Increases as a result of tax positions taken during a prior period 0.7 3.8 24.0 Increases as a result of tax positions taken during the current period 4.2 6.1 4.7 Decreases as a result of tax positions taken during the current period — — (3.1 ) Decreases relating to settlements with taxing authorities — — (3.2 ) Decreases resulting from the lapse of the applicable statute of limitations (1.0 ) (0.6 ) (1.5 ) Translation Difference (0.4 ) 0.1 (0.9 ) Total unrecognized tax benefits at end of year $ 62.5 $ 59.0 $ 49.6 The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows. DEFERRED TAXES DECEMBER 31 2020 2019 2018 Assets Provisions $ 141.2 $ 105.2 $ 104.9 Costs capitalized for tax 21.3 25.5 18.2 Property, plant and equipment 4.7 9.8 13.0 Retirement Plans 58.7 60.6 50.1 Tax receivables, principally NOL’s 109.7 93.8 113.9 Deferred tax assets before allowances $ 335.6 $ 294.9 $ 300.1 Valuation allowances (67.9 ) (60.7 ) (71.0 ) Total $ 267.7 $ 234.2 $ 229.1 Liabilities Acquired intangibles $ (1.9 ) $ (3.8 ) $ (6.1 ) Statutory tax allowances (0.2 ) (0.2 ) (0.5 ) Distribution taxes (14.5 ) (15.4 ) (22.9 ) Other (4.3 ) (6.5 ) (10.1 ) Total $ (20.9 ) $ (25.9 ) $ (39.6 ) Net deferred tax asset $ 246.8 $ 208.3 $ 189.5 The following table summarizes the activity related to the Company’s valuation allowances: VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 2020 2019 2018 Allowances at beginning of year $ 60.7 $ 71.0 $ 110.6 Benefits reserved current year 13.9 3.9 6.4 Benefits recognized current year (1.1 ) (10.5 ) (36.9 ) Write-offs and other changes — — — Translation difference (5.6 ) (3.7 ) (9.1 ) Allowances at end of year $ 67.9 $ 60.7 $ 71.0 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Receivables | 7. Receivables DECEMBER 31 2020 2019 2018 Receivables $ 1,831.4 $ 1,632.4 $ 1,659.4 Allowance at beginning of year $ (8.5 ) $ (7.3 ) $ (6.3 ) Reversal of allowance 6.7 1.6 0.9 Addition to allowance (10.5 ) (5.1 ) (3.8 ) Write-off against allowance 1.0 2.3 1.6 Translation difference (0.5 ) 0.0 0.3 Allowance at end of year $ (11.8 ) $ (8.5 ) $ (7.3 ) Total receivables, net of allowance $ 1,819.6 $ 1,623.9 $ 1,652.1 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 8. Inventories DECEMBER 31 2020 2019 2018 Raw material $ 378.8 $ 366.3 $ 370.9 Work in progress 292.3 257.4 277.4 Finished products 220.1 200.4 194.7 Inventories $ 891.2 $ 824.1 $ 843.0 Inventory reserve at beginning of year $ (83.2 ) $ (85.1 ) $ (80.6 ) Reversal of reserve 5.0 11.3 1.4 Addition to reserve (16.2 ) (13.2 ) (13.9 ) Write-off against reserve 7.8 8.3 5.3 Translation difference (6.3 ) (4.5 ) 2.7 Inventory reserve at end of year $ (92.9 ) $ (83.2 ) $ (85.1 ) Total inventories, net of reserve $ 798.3 $ 740.9 $ 757.9 |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets Noncurrent [Abstract] | |
Other Non-Current Assets | 9. Other Non-Current Assets DECEMBER 31 2020 2019 Equity method investments $ 8.7 $ 8.6 Deferred tax assets 281.1 244.6 Income tax receivables 28.2 25.2 Insurance receivables 104.7 68.4 Other non-current assets 43.5 39.6 Total other non-current assets $ 466.2 $ 386.4 As of December 31, 2020 and 2019, the Company had one equity method investment. The Company has ownership of 49% in Autoliv-Hirotako Safety Sdn, Bhd (parent and subsidiaries) in Malaysia which it currently does not control, but in which it exercises significant influence over operations and financial position. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 10. Property, Plant and Equipment DECEMBER 31 2020 2019 Estimated life Land and land improvements $ 120.6 $ 114.3 n/a to 15 Buildings 962.0 888.2 20-40 Machinery and equipment 4,208.3 3,810.5 3-12 Construction in progress 313.9 329.0 n/a Property, plant and equipment $ 5,604.8 $ 5,142.0 Less accumulated depreciation (3,735.7 ) (3,326.3 ) Net of depreciation $ 1,869.1 $ 1,815.7 DEPRECIATION INCLUDED IN 2020 2019 2018 Cost of sales $ 327.1 $ 307.0 $ 300.9 Selling, general and administrative expenses 12.9 13.4 13.9 Research, development and engineering expenses, net 20.8 18.7 15.9 Total $ 360.8 $ 339.1 $ 330.7 No significant fixed asset impairments related to the Company’s continuing operations were recognized during 2020, 2019 or 2018. The net book value of machinery and equip ment and buildings and land un der finance lease contracts recorded at December 31, 2020 and December 31, 2019 were immaterial . The amortization expense related to finance leases is included with depreciation expenses disclosed in the table above. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 11. Goodwill and Intangible Assets GOODWILL 2020 2019 Carrying amount at beginning of year $ 1,387.9 $ 1,389.9 Translation differences 10.2 (2.0 ) Carrying amount at end of year $ 1,398.1 $ 1,387.9 Approximately $1.2 billion of the Company’s goodwill is associated with the 1997 merger of Autoliv AB and the Automotive Safety Products Division of Morton International, Inc. No goodwill impairment charges were recognized during 2020, 2019 or 2018. AMORTIZABLE INTANGIBLES 2020 2019 Gross carrying amount $ 406.8 $ 398.9 Accumulated amortization (393.2 ) (376.6 ) Carrying value $ 13.6 $ 22.3 At December 31, 2020, intangible assets subject to amortization mainly relate to acquired technology. No significant impairments of intangible assets were recognized during 2020, 2019 or 2018. Amortization expense related to intangible assets was $10.0 million, $11.5 million and $11.3 million in 2020, 2019 and 2018, respectively. Estimated future amortization expense is (in millions): 2021: $9.9; 2022: $3.5; 2023: $0.1; 2024: $0.1 and 2025: $0.0. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 12. Restructuring Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with headcount reductions and plant consolidations. The Company expects to finance restructuring programs over the next several years through cash generated from its ongoing operations or through cash available under its existing credit facilities. The Company does not expect that the execution of these programs will have an adverse impact on its liquidity position. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. The restructuring reserve balance is included within Accrued expenses in the Consolidated Balance Sheet. 2020 The Company recorded restructuring charges in 2020, mainly related to the structural efficiency program initiated in the second quarter of 2020 in the Americas and Europe and footprint optimization activities in Europe initiated in the third quarter of 2020. Cash payments mainly related to the structural efficiency program initiated in 2019. As of December 31, 2020, approximately $57 million out of the $125.9 million in total reserve balance can be attributed to the structural efficiency program initiated in the second quarter of 2020. This program is expected to be concluded in 2021. Approximately $36 million of the balance can be attributed to footprint optimization activities in Europe initiated in the third quarter of 2020. This program is expected to be concluded in 2023. December 31 Provision/ Provision/ Cash Translation December 31 2019 Charge Reversal payments difference 2020 Restructuring employee-related $ 55.9 $ 108.5 $ (10.1 ) $ (38.4 ) $ 9.5 $ 125.4 Other 0.2 0.3 — — 0.0 0.5 Total reserve $ 56.1 $ 108.8 $ (10.1 ) $ (38.4 ) $ 9.5 $ 125.9 2019 The provision recorded in 2019 of $56.9 million mainly related to the Structural efficiency program initiated in the second quarter of 2019. The total cost of the Structural efficiency program was expected to be $52.0 million, and as of December 31, 2019, approximately $23 million out of the $56.1 million total reserve balance could be attributed to these activities. The remaining balance related to older restructuring programs, primarily in Western Europe. Cash payments in 2019 mainly related to the Structural efficiency program initiated in 2019 December 31 Provision/ Provision/ Cash Translation December 31 2018 Charge Reversal payments difference 2019 Restructuring employee-related $ 33.2 $ 56.9 $ (3.0 ) $ (30.3 ) $ (0.9 ) $ 55.9 Other 0.2 — — — 0.0 0.2 Total reserve $ 33.4 $ 56.9 $ (3.0 ) $ (30.3 ) $ (0.9 ) $ 56.1 2018 In 2018, the restructuring provisions and cash payments related mainly to headcount reductions in high-cost countries in Western Europe. The table below summarizes the change in the balance sheet position of the restructuring reserves from December 31, 2017 to December 31, 2018 (dollars in millions). December 31 Provision/ Provision/ Cash Translation December 31 2017 Charge Reversal payments difference 2018 Restructuring employee-related $ 39.4 $ 9.0 $ (0.1 ) $ (13.6 ) $ (1.5 ) $ 33.2 Other 0.2 0.2 — — (0.2 ) 0.2 Total reserve $ 39.6 $ 9.2 $ (0.1 ) $ (13.6 ) $ (1.7 ) $ 33.4 |
Product Related Liabilities
Product Related Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Related Liabilities | 13. Product Related Liabilities Autoliv is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. For further information, see Note 18. The Company records liabilities for product related risks when probable claims are identified and when it is possible to reasonably estimate costs. Changes in reserve for warranty claims are estimated based on prior experience, likely changes in performance of newer products, and the mix and volume of the products sold. The changes in reserve are recorded on an accrual basis. Pursuant to the Spin-off Agreements, Autoliv is also required to indemnify Veoneer for recalls related to certain qualified Electronics products. At December 31, 2020, the reserves for indemnification liabilities were approximately $10 million and were included within accrued expenses on the Consolidated Balance Sheet. In 2020, the change in reserve for product related liabilities mainly related to recall related issues, whereof the “Toyota Recall” represented the major recall issue (for further information, see Note 18). In 2018 and 2019, changes in the reserve mainly related to other recall and warranty related issues. In 2018, 2019 and 2020, cash payments primarily relate to recall and warranty related issues. The reserve for product related liabilities is included in accrued expenses on the Consolidated Balance Sheet. A majority of the Company’s recall related issues as of December 31, 2020 are covered by insurance. Insurance receivables are included within other current and non-current assets on the Consolidated Balance Sheet. As of December 31, 2020, the Company had total insurance receivables related to recall issues of $343 million. The total product liability reserve currently is less than the product liability insurance receivable because the timing of insurance recoveries does not match the timing of our product liability. The table below summarizes the change in the balance sheet position of the product related liabilities (dollars in millions). 2020 2019 2018 Reserve at beginning of the year $ 72.1 $ 62.2 $ 95.6 Change in reserve 303.5 39.3 20.6 Cash payments (36.0 ) (29.1 ) (54.3 ) Translation difference 1.4 (0.3 ) 0.3 Reserve at end of the year $ 341.0 $ 72.1 $ 62.2 |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | 14. Debt and Credit Agreements SHORT-TERM DEBT As of December 31, 2020, total short-term debt was $302 million (2019: $368 million). Short-term debt consisted mainly of $275 million USPP Bond with maturity in April 2021 and $27 million local debt. The Company’s subsidiaries have credit agreements, principally in the form of overdraft facilities with several local banks. Total available short-term facilities as of December 31, 2020, excluding commercial paper facilities as described below, amounted to $487 million, of which approximately $27 million was utilized. The weighted average interest rate on total short-term debt outstanding at December 31, 2020 and 2019, excluding the short-term portion of long-term debt, was 3% and 3%, respectively. LONG-TERM DEBT As of December 31, 2020, total long-term debt was $2,110 million. In December 2020, the Company repaid the €100 million of 18-month floating rate notes under its EMTN program. It was originally issued in June 2019 and carried a coupon of 3M Euribor +0.50%. In June 2020, the Company repaid its 3-year loan from Swedish Export Credit Corporation of SEK 1,200 million in advance which carried a floating interest rate of 3M STIBOR +0.54%. At the same time, the Company utilized its new SEK 6,000 million facility with Swedish Export Credit Corporation which was signed in May 2020. The SEK 6,000 million facility was utilized in two different loans. One SEK 3,000 million loan maturing in 2022 carrying a floating interest rate of 3M STIBOR + % and one SEK 3,000 million loan maturing in 2025 carrying a floating interest rate of 3M STIBOR + %. In June 2018, the Company also issued €500 million of 5-year notes in the Eurobond market. The notes carry a coupon of 0.75%. In 2014, the Company issued CREDIT FACILITIES In July 2016, the Company signed a $1,100 million senior unsecured revolving credit facility with 14 banks. The term of the facility was 5 years with two one-year extension options. The Company has utilized these extension options and extended the maturity to July 2023 The Company has two commercial paper programs: one SEK 7 billion (approx. $855 million) Swedish program and a $1.0 billion U.S. program. At December 31, 2020 a total of $0 million had been issued under these programs. The Company is not subject to any financial covenants, i.e. performance related restrictions, in any of its significant long-term borrowings or commitments. CREDIT RISK In the Company’s financial operations, credit risk arises in connection with cash deposits with banks and when entering into forward exchange agreements, swap contracts or other financial instruments. In order to reduce this risk, deposits and financial instruments are only entered with a limited number of banks up to a calculated risk amount of $150 million per bank for banks rated A- or above and up to $50 million for banks rated BBB+. The policy of the Company is to work with banks that have a strong credit rating and that participate in the Company’s financing. In addition to this, deposits of up to an aggregate amount of $2 billion can be placed in U.S. and Swedish government paper and in certain AAA rated money market funds. As of December 31, 2020, the Company had placed $392 million in money market funds. The table below shows debt maturity as cash flow. For a description of hedging instruments used as part of debt management, see the Financial Instruments section of Note 2 and Note 5. DEBT PROFILE Total PRINCIPAL AMOUNT BY EXPECTED MATURITY (dollars in millions) 2021 2022 2023 2024 2025 Thereafter long- term Total Bonds $ 275 $ — $ 613 $ 297 $ — $ 470 $ 1,380 $ 1,655 Loans — 366 — — 366 — 732 732 Commercial papers — — — — — — — — Other short-term debt 27 — — — — — — 27 Total principal amount $ 302 $ 366 $ 613 $ 297 $ 366 $ 470 $ 2,112 $ 2,414 1) 1) The difference between reported total debt and total principal amount is mainly related to capitalized debt issuance costs. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity The number of shares outstanding as of December 31, 2020 was 87,353,432. DIVIDENDS 2020 2019 2018 Cash dividend paid per share $ 0.62 $ 2.48 $ 2.46 Cash dividend declared per share 1) $ — $ 2.48 $ 2.48 1) OTHER COMPREHENSIVE LOSS / ENDING BALANCE 1) 2020 2019 2018 Cumulative translation adjustments $ (268.8 ) $ (364.9 ) $ (381.2 ) Net pension liability (78.1 ) (84.0 ) (55.0 ) Distribution to Veoneer — — 13.0 Total (ending balance) $ (346.9 ) $ (448.9 ) $ (423.2 ) Deferred taxes on the pension liability $ 22.8 $ 24.6 $ 15.4 1) The components of Other Comprehensive Loss are net of any related income tax effects. SHARE REPURCHASE PROGRAM The Company’s Board of Directors approved a share repurchase program in 2000 authorizing the repurchase of 10 million shares and subsequently expanded the authorization four times between 2000 and 2014 to 47.5 million shares. The Company made no share repurchases during 2018-2020. There is no expiration date for the share repurchase program. The Company is authorized to repurchase an additional 2,986,288 shares under the program at December 31, 2020. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 16. Supplemental Cash Flow Information Payments for interest and income taxes were as follows: 2020 2019 2018 Interest $ 73 $ 72 $ 66 Income taxes 104 192 214 |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plan | 17. Stock Incentive Plan Eligible employees and non-employee directors of Autoliv participate in the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and received Autoliv stock-based awards which include stock options (SOs), restricted stock units (RSUs) and performance shares (PSs). In connection with the Veoneer spin-off, each outstanding Autoliv stock-based award as of June 29, 2018 (the Distribution Date) was converted to a stock award that has underlying shares of both Autoliv and Veoneer common shares. The conversion that occurred on the Distribution Date was based on the following: • SOs - A number of SOs comprising 50% of the value of the outstanding SOs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of SOs comprising the remaining 50% percent of the pre-spin-off value were replaced with options to acquire shares of Veoneer common stock. • RSUs - A number of RSUs comprising 50% of the value of the outstanding RSUs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of RSUs comprising the remaining 50% of the pre-spin-off value were replaced with RSUs with underlying Veoneer common stock. • PSs - Outstanding PSs pre-spin-off were converted to time-based RSUs and were divided between Autoliv and Veoneer common stock in the same manner as other outstanding RSUs (as described above) on the Distribution Date. The number of outstanding PSs pre-spin-off to be converted was determined based on pro-ration of the performance period such as: 1) The level of actual achievement of performance goals for each outstanding PS for the period between the first day of the performance period and December 31, 2017 (the “Performance Measurement Date”), referred to as “Level of Performance-to-Date”; and 2) The greater of the Level of Performance-to-Date and the target performance level for the period between the Performance Measurement Date and the last day of the performance period. In each case above, the conversion was intended to generally preserve the intrinsic value of the original award determined as of the Distribution Date. The number of converted RSUs and SOs for Autoliv and Veoneer was based on the average of Autoliv closing stock prices for the last 5 trading days prior to the spin-off and the average of closing stock prices of Autoliv and Veoneer, respectively, for the first 5 trading days after the spin-off. Accordingly, 50% of the outstanding awards as of the Distribution Date, and the related exercise price, were converted to Adjusted Autoliv Awards using a conversion factor of 1.41. As a result of the spin-off and the related conversion, it was determined that the stock based awards were modified in accordance with ASC 718, Compensation – Stock Compensation With certain limited exceptions, including the freezing of the Performance Measurement Date to December 31, 2017 as noted above, the adjusted SOs and RSUs outstanding after the spin-off are subject to the same terms and conditions (including with respect to vesting and expiration) that were applicable to such Autoliv stock-based awards immediately prior to the conversion and as described below. The fair value of the RSUs and PSs is calculated as the grant date fair value of the shares expected to be issued. The RSUs granted in 2020, 2019 and 2018 entitle the grantee to receive dividend equivalents in the form of additional RSUs subject to the same vesting conditions as the underlying RSUs. This also applies for the PSs granted in 2019 and 2020. For the grants made during 2020, 2019 and 2018, the fair value of a PS and a RSU was calculated by using the closing stock price on the grant date. The grant date fair value during 2020 was $6.6 million for the RSUs and $5.7 million for the PSs. Under the new compensation policy approved in 2020, the Company’s non-employee directors receive RSUs equivalent to approximately 54% of their annual base retainer except for the Chairman of the Board of Directors who also receives 50% of his Non-Executive Chairman supplemental retainer in RSUs. All RSUs vest in one installment on the earlier of the next AGM or the first anniversary of the grant date, in each case subject to the grantee’s continued service as a non-employee director on the vesting date with limited exceptions. The RSUs granted to the Company’s non-employee directors entitle the grantee to receive dividend equivalents in the form of additional RSUs subject to the same vesting conditions as the underlying RSUs. The grant date fair value for the RSUs granted in 2020 to the Company’s non-employee directors was $1.5 million. The source of the shares issued upon vesting of awards is generally from treasury shares. The Stock Incentive Plan provides for the issuance of up to 9,585,055 common shares for awards. At December 31, 2020, 6,674,658 of these shares have been issued for awards which includes 77,925 shares of common stock issued to non-employee directors in satisfaction of all or a portion of his or her annual base retainer for service on the Board. Included within the RSUs granted in 2020 are 25,301 RSUs issued to non-employee directors in satisfaction of all or a portion of his or her annual base retainer for service on the Board. In 2015 and earlier, stock awards were granted in the form of SOs and RSUs. All SOs were granted for 10-year terms, had an exercise price equal to the fair value of the share at the date of grant, and became exercisable after one year of continued employment following the grant date. The average grant date fair values of SOs were calculated using the Black-Scholes valuation model. The Company used historical exercise data for determining the expected life assumption. Expected volatility was based on historical and implied volatility. The Company recorded $11.7 million, $8.4 million and $9.1 million stock-based compensation expense related to RSUs and PSs for 2020, 2019 and 2018, respectively. The total compensation cost related to non-vested awards not yet recognized is $16 million for RSUs and PSs and the weighted average period over which this cost is expected to be recognized is approximately 1.5 years. There are no remaining unrecognized compensation costs associated with SOs. Information on the number of RSUs, PSs and SOs related to the Stock Incentive Plan during the period of 2018 to 2020 is as follows. RSUs 2020 2019 2018 Weighted average fair value at grant date 1) $ 69.58 $ 76.85 $ 131.51 Outstanding at beginning of year 255,195 262,074 188,410 Granted 115,500 109,653 131,246 Shares issued (105,750 ) (86,086 ) (84,425 ) Cancelled/Forfeited/Expired (20,044 ) (30,446 ) (6,485 ) Spin conversion 2) — — 33,328 Outstanding at end of year 3) 244,901 255,195 262,074 1) Weighted average fair value at grant date pre spin-off in 2018. 2 ) Reflects the impact of the cancellation of PS awards outstanding as of the Distribution Date, and the conversion to RSUs in accordance with the conversion factor described above. 3 ) Outstanding at the end of 2018 reflects the RSUs held by employees of Autoliv and Veoneer, in accordance with the conversion factor described above. The corresponding weighted average grant date fair value after applying the conversion factor is $100.74 as of December 31, 2018. The aggregate intrinsic value for RSUs outstanding at December 31, 2020 was $22.6 million. PSs 2020 2019 2018 Weighted average fair value at grant date 1) $ 69.86 $ 77.00 $ 105.87 Outstanding at beginning of year 76,321 — 139,891 Change in performance conditions 23,998 12,530 — Granted 2) 75,940 66,542 588 Cancelled/Forfeited/Expired (18,131 ) (2,751 ) (3,076 ) Spin conversion 3) — — (137,403 ) Outstanding at end of year 158,128 76,321 — 1) 2 ) 3) Reflects the replacement of awards due to the spin-off. Outstanding PS awards were converted to RSU awards in accordance with the conversion factor described above. The PSs granted include assumptions regarding the ultimate number of shares that will be issued based on the probability of achievement of the performance conditions. Changes in those assumptions result in changes in the estimated shares to be issued which is reflected in the “Change in performance conditions” line above. SOs Number of options Weighted average exercise price Outstanding at Dec 31, 2017 299,949 $ 89.20 Exercised (92,485 ) 86.59 Cancelled/Forfeited/Expired (65,390 ) 88.75 Outstanding at Dec 31, 2018 142,074 63.43 Exercised (20,928 ) 42.11 Spin conversion 1) (5,271 ) 80.40 Outstanding at Dec 31, 2019 2) 115,875 66.70 Exercised (14,238 ) 55.55 Cancelled/Forfeited/Expired (11,462 ) 69.25 Outstanding at Dec 31, 2020 90,175 $ 68.13 OPTIONS EXERCISABLE At December 31, 2018 142,074 $ 63.43 At December 31, 2019 115,875 66.70 At December 31, 2020 90,175 68.13 1) 2) The following summarizes information about SOs outstanding and exercisable at December 31, 2020: RANGE OF EXERCISE PRICES Number outstanding & exercisable Remaining contract life (in years) Weighted average exercise price $47.52 6,607 1.14 47.52 $49.07 13,612 2.14 49.07 $51.74 3,799 0.14 51.74 $67.29 26,965 3.14 67.29 $80.40 39,192 4.13 80.40 90,175 3.14 68.13 The total aggregate intrinsic value, which is the difference between the exercise price and $92.10 (closing price per share at December 31, 2020), for all “in the money” SOs, both outstanding and exercisable as of December 31, 2020, was $2.2 million. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 18. Contingent Liabilities LEGAL PROCEEDINGS Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in the future. 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. In addition to concluded matters, authorities of other countries with significant light vehicle manufacturing or sales may initiate similar investigations. It is the Company’s policy to cooperate with governmental investigations. European Commission (“EC”) Investigations: On June 7-9, 2011, representatives of the European Commission (“EC”), the European antitrust authority, visited two facilities of a Company subsidiary in Germany to gather information for an investigation of anti-competitive behavior among suppliers of occupant safety systems. On November 22, 2017, the EC concluded a discrete portion of its investigation and imposed a fine on the Company of €8.1 million (approximately $9.7 million), and t he Company paid this amount during the first quarter of 2018. 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), and the Company paid this amount in June 2019. 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. Recall decisions regarding the Company’s products may require a significant amount of judgment by us, our customers and safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost of a recall is also subject to a significant amount of judgment and discussions between the Company and its customers. 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 in either a warranty or a recall situation. Accordingly, the future costs of warranty or recall 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 maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based on our prior claims experience. 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 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. As noted in Note 13 above, as of December 31, 2020, the Company has accrued $341 million for total product related liabilities. The recall related liabilities than the p roduct l iability i nsurance r eceivable because the timing of insurance recoveries does not match the timing of the recording of our product liability. Specific Recalls: On June 29, 2016, the Company announced that it is cooperating with Toyota Motor Corp. in its recall of approximately 1.4 million vehicles equipped with a certain model of the Company’s side curtain airbag (the “Toyota Recall”). The Company has determined pursuant to ASC 450 that a loss with respect to the Toyota Recall is probable and has accrued Additionally, in the fourth quarter of 2020, the Company was made aware of a potential recall by one of its customers (the “Unannounced Recall”). The Company continues to evaluate this matter with its customer. The Company has determined pursuant to ASC 450 that a loss with respect to the Unannounced Recall is probable and has accrued an amount that is reflected in the total product liability accrual in the fourth quarter of 2020. The amount by which the product liability accrual exceeds the product liability insurance receivable with respect to the Unannounced Recall is $26 million and includes self-insurance retention costs and deductibles. The ultimate loss to the Company of the Unannounced Recall could be materially different from the amount the Company has accrued. Intellectual property In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material. The table in Note 13 Product Related Liabilities above summarizes the change in the balance sheet position of the product related liabilities for the fiscal year ended December 31, 2020. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 19. Retirement Plans DEFINED CONTRIBUTION PLANS Many of the Company’s employees are covered by government sponsored pension and welfare programs. Under the terms of these programs, the Company makes periodic payments to various government agencies. In addition, in some countries the Company sponsors or participates in certain non-governmental defined contribution plans. Contributions to defined contribution plans for the years ended December 31, 2020, 2019 and 2018 were $14.7 million, $15.7 million and $19.2 million, respectively. MULTIEMPLOYER PLANS The Company participates in a multiemployer plan in Sweden. This ITP-2 plan is funded through Alecta and covers employees born before 1979, for whom it provides a final pay pension benefit based on all service with participating employers. The Company must pay for wage increases in excess of inflation on service earned with previous employers. The plan also provides disability and family benefits and is more than 100% funded. The Company´s contributions to this multiemployer plan for the years ended December 31, 2020, 2019 and 2018 were $4.0 million, $3.9 million and $6.1 million, respectively. DEFINED BENEFIT PLANS The Company has a number of defined benefit pension plans, both contributory and non-contributory, in the U.S., France, Germany, India, Japan, Mexico, Philippines, Sweden, South Korea, Thailand, Turkey and the United Kingdom. There are funded as well as unfunded plan arrangements which provide retirement benefits to both U.S. and non-U.S. participants. The main plan is the U.S. plan for which the benefits are based on an average of the employee’s earnings in the years preceding retirement and on credited service. In a prior year, the Company closed participation in the Autoliv ASP, Inc. Pension Plan to exclude those employees hired after December 31, 2003. Within the U.S. there is also a non-qualified restoration plan that provides benefits to employees whose benefits in the primary U.S. plan are restricted by limitations on the compensation that can be considered in calculating their benefits. During December 2017 the Company amended the U.S. defined benefit 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 is 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 currently accruing benefits. CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. 2020 2019 2020 2019 Benefit obligation at beginning of year $ 400.1 $ 332.1 $ 252.6 $ 216.9 Service cost 7.5 6.9 12.2 10.7 Interest cost 12.2 14.2 5.8 6.4 Actuarial (gain) loss due to: Change in discount rate 46.4 67.8 12.9 27.7 Experience (5.0 ) 3.0 0.1 (1.2 ) Other assumption changes 3.2 (0.4 ) (11.2 ) (1.0 ) Benefits paid (3.8 ) (23.5 ) (9.0 ) (8.4 ) Plan settlements (34.4 ) — (0.4 ) (1.2 ) Special termination benefits — — 0.0 0.5 Other — — 1.5 1.6 Translation difference — — 14.9 0.6 Benefit obligation at end of year $ 426.2 $ 400.1 $ 279.4 $ 252.6 Fair value of plan assets at beginning of year $ 323.8 $ 273.0 $ 88.7 $ 77.8 Actual return on plan assets 52.5 67.0 8.8 8.9 Company contributions 16.5 7.3 9.7 9.5 Benefits paid (3.8 ) (23.5 ) (9.0 ) (8.4 ) Plan settlements (34.4 ) — (0.4 ) (1.2 ) Translation difference — — 5.0 2.1 Fair value of plan assets at end of year $ 354.6 $ 323.8 $ 102.8 $ 88.7 Funded status recognized in the balance sheet $ (71.6 ) $ (76.3 ) $ (176.6 ) $ (163.9 ) The U.S. plan provides that benefits may be paid in the form of a lump sum if so elected by the participant. In order to more accurately reflect a market-derived pension obligation, Autoliv adjusts the assumed lump sum interest rate to reflect market conditions as of each December 31. This methodology is consistent with the approach required under the Pension Protection Act of 2006, which provides the rules for determining minimum funding requirements in the U.S. COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS U.S. (Dollars in millions) 2020 2019 2018 Service cost $ 7.5 $ 6.9 $ 8.7 Interest cost 12.2 14.2 12.8 Expected return on plan assets (16.3 ) (13.5 ) (20.4 ) Amortization of prior service credit 0.0 0.0 0.1 Amortization of actuarial loss 2.8 1.9 2.2 Settlement loss 7.2 — — Net periodic benefit cost $ 13.4 $ 9.5 $ 3.4 Non-U.S. (Dollars in millions) 2020 2019 2018 Service cost $ 12.2 $ 10.7 $ 10.8 Interest cost 5.8 6.4 5.7 Expected return on plan assets (1.7 ) (1.9 ) (2.0 ) Amortization of prior service costs 0.4 0.3 0.3 Amortization of actuarial loss 2.3 0.9 1.4 Settlement loss 0.1 0.6 0.2 Special termination benefits 0.0 0.5 0.5 Net periodic benefit cost $ 19.1 $ 17.5 $ 16.9 The service cost and amortization of prior service cost components are reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components, interest cost, expected returns on plan assets and amortization of actuarial loss, are reported as Other non-operating items, net in the Consolidated Statements of Income. Amortization of the net actuarial loss from accumulated other comprehensive income is made over the estimated remaining service lives of the plan participants, 9 years for U.S. and from 4 to 31 years for non-U.S. participants, varying between the different countries depending on the age of the work force. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX AS OF DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2020 2019 2020 2019 Net actuarial loss $ 61.5 $ 63.1 $ 41.9 $ 47.6 Prior service cost 0.0 0.1 3.5 3.7 Total accumulated other comprehensive income recognized in the balance sheet $ 61.5 $ 63.2 $ 45.4 $ 51.3 CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2020 2019 2020 2019 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 63.2 $ 48.1 $ 51.3 $ 33.9 Net actuarial (gain) loss 8.3 16.9 (5.2 ) 19.1 Amortization of prior service credit (cost) 0.0 0.0 (0.4 ) (0.3 ) Amortization of actuarial loss (10.0 ) (1.8 ) (2.3 ) (1.5 ) Translation difference — — 2.0 0.1 Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 61.5 $ 63.2 $ 45.4 $ 51.3 The accumulated benefit obligation for the U.S. non-contributory defined benefit pension plans was $419.1 million and $384.4 million at December 31, 2020 and 2019, respectively. The accumulated benefit obligation for the non-U.S. defined benefit pension plans was $236.9 million and $194.5 million at December 31, 2020 and 2019, respectively. Pension plans for which the accumulated benefit obligation (ABO) is notably in excess of the plan assets reside in the following countries: U.S., Mexico, France, Germany, Japan, South Korea and Sweden. PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2020 2019 2020 2019 Projected Benefit Obligation (PBO) $ 426.2 $ 400.1 $ 179.2 $ 169.3 Accumulated Benefit Obligation (ABO) 419.1 384.3 142.7 127.2 Fair value of plan assets 354.6 323.8 4.0 3.8 The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected benefit obligation and annual net periodic benefit cost. ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31 U.S. Non-U.S. 1) % WEIGHTED AVERAGE 2020 2019 2020 2019 Discount rate 2.35 3.25 0.25-2.70 0.25-2.70 Rate of increases in compensation level 2.65 2.65 1.80-4.00 2.00-5.00 ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31 U.S. % WEIGHTED AVERAGE 2020 2019 2018 Discount rate 3.25 4.35 3.55 Rate of increases in compensation level 2.65 2.65 2.65 Expected long-term rate of return on assets 5.05 5.05 7.08 Non-U.S. 1) % WEIGHTED AVERAGE 2020 2019 2018 Discount rate 0.25-2.70 0.50-3.25 0.25-3.25 Rate of increases in compensation level 2.00-5.00 2.00-5.00 2.00-5.00 Expected long-term rate of return on assets 1.50-2.25 2.25-2.50 2.25-2.50 1) The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent around 83% of the total Non-U.S. projected benefit obligation. The discount rate for the U.S. plans has been set based on the rates of return on high-quality fixed-income investments currently available at the measurement date and expected to be available during the period the benefits will be paid. The expected timing of cash flows from the plan has also been considered in selecting the discount rate. In particular, the yields on bonds rated AA or better on the measurement date have been used to set the discount rate. The discount rate for the U.K. plan has been set based on the weighted average yields on long-term high-grade corporate bonds and is determined by reference to financial markets on the measurement date. The expected rate of increase in compensation levels and long-term rate of return on plan assets are determined based on a number of factors and must take into account long-term expectations and reflect the financial environment in the respective local market. The expected return on assets for the U.S. and U.K. plans are based on the fair value of the assets as of December 31. The level of equity exposure is currently targeted at approximately 40% for the primary U.S. plan. The investment objective is to provide an attractive risk-adjusted return that will ensure the payment of benefits while protecting against the risk of substantial investment losses. Correlations among the asset classes are used to identify an asset mix that Autoliv believes will provide the most attractive returns. Long-term return forecasts for each asset class using historical data and other qualitative considerations to adjust for projected economic forecasts are used to set the expected rate of return for the entire portfolio. The Company has assumed a long-term rate of return on the U.S. plan assets of 5.05% for calculating the 2020 expense and 5.05% for calculating the 2021 expense. The Company has assumed a long-term rate of return on the non-U.S. plan assets in a range of 1.50-2.25% for 2020. The closed U.K. plan which has a targeted and actual allocation of almost 100% debt instruments accounts for approximately 80% of the total non-U.S. plan assets. Autoliv made contributions to the U.S. plan during 2020 and 2019 amounting to $16.5 million and $7.3 million, respectively. Contributions to the U.K. plan during 2020 and 2019 amounted to $1.9 million and $1.2 million, respectively. The Company expects to contribute $12.6 million to its U.S. pension plan in 2021 and is currently projecting a yearly funding at approximately the same level in the years thereafter. For the UK pension plan, which is the most significant non-U.S. pension plan, the Company expects to contribute $2.0 million in 2021 and in the years thereafter. FAIR VALUE OF TOTAL PLAN ASSETS FOR YEARS ENDED DECEMBER 31 U.S. U.S. Non-U.S. ASSETS CATEGORY IN % WEIGHTED AVERAGE Target allocation 2020 2019 2020 2019 Equity securities 40 42 40 0 0 Debt instruments 60 57 60 77 79 Other assets — 1 0 23 21 Total 100 100 100 100 100 The following table summarizes the fair value of the Company’s U.S. and non-U.S. defined benefit pension plan assets (dollars in millions): (Dollars in millions) Fair value measurement at December 31, 2020 Fair value measurement at December 31, 2019 Assets Non-U.S. Bonds Corporate $ 79.6 $ 70.4 Insurance Contracts 17.5 14.7 Other Investments 9.6 6.2 Assets at fair value Level 2 106.7 91.3 Investments measured at net asset value (NAV): Common collective trusts 350.7 321.2 Total $ 457.4 $ 412.5 The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Plan assets not measured using the NAV are classified as Level 2 in the table above. Plan assets measured using the NAV mainly relate to the U.S. defined benefit pension plans and are separately disclosed as Common collective trusts below the Level 2 assets in the table above. The estimated future benefit payments for the pension benefits reflect expected future service, as appropriate. The amount of benefit payments in a given year may vary from the projected amount, especially for the U.S. plan since historically this plan pays the majority of benefits as a lump sum, where the lump sum amounts vary with market interest rates. PENSION BENEFITS EXPECTED PAYMENTS (dollars in millions) U.S. Non-U.S. 2021 21 9 2022 22 11 2023 23 11 2024 29 12 2025 26 13 Years 2026-2030 131 76 POSTRETIREMENT BENEFITS OTHER THAN PENSIONS The Company currently provides postretirement health care and life insurance benefits to most of its U.S. retirees. In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. Spouses for certain retirees are also eligible for reimbursement under the plan. Life insurance coverage is available for those who elect coverage under the retiree health plan. During 2014, the plan was amended to move from a self-insured model where employees were charged an estimated premium based on anticipated plan expenses for continued coverage, to a plan where retirees are provided a fixed contribution to a Health Retirement Account (HRA). Retirees can use the HRA funds to purchase insurance through a private exchange. Employees hired on or after January 1, 2004 are not eligible to participate in the plan. CHANGES IN BENEFIT OBLIGATION FOR POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 (Dollars in millions) 2020 2019 Benefit obligation at beginning of year $ 18.4 $ 15.5 Service cost 0.2 0.2 Interest cost 0.6 0.6 Actuarial loss (gain) 2.1 2.2 Benefits paid (0.4 ) (0.3 ) Other 0.3 0.2 Benefit obligation at end of year $ 21.2 $ 18.4 The liability for postretirement benefits other than pensions is classified as other non-current liabilities in the balance sheet. COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE POST RETIREMENT BENEFIT PLANS OTHER THAN PENSIONS PERIOD ENDED DECEMBER 31 (Dollars in millions) 2020 2019 2018 Service cost $ 0.2 $ 0.2 $ 0.3 Interest cost 0.6 0.6 0.6 Amortization of prior service cost (2.1 ) (2.2 ) (2.2 ) Amortization of actuarial loss (0.0 ) (0.3 ) (0.3 ) Net periodic benefit (credit) $ (1.3 ) $ (1.7 ) $ (1.6 ) COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX ASSOCIATED WITH POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 U.S. (Dollars in millions) 2020 2019 Net actuarial loss (gain) $ (0.1 ) $ 2.0 Prior service cost (credit) 4.0 6.1 Total accumulated other comprehensive loss (income) recognized in the balance sheet $ 3.9 $ 8.1 The average discount rate used to determine the U.S. postretirement benefit obligation was 2.6% in 2020 and 3.5% in 2019. The average discount rate used in determining the postretirement benefit cost was 3.5% in 2020, 4.45% in 2019 and 3.75% in 2018. The estimated future benefit payments for the postretirement benefits set forth below reflect expected future service as appropriate (dollars in millions). POSTRETIREMENT BENEFITS (Dollars in millions) EXPECTED PAYMENTS 2021 0.5 2022 0.6 2023 0.6 2024 0.7 2025 0.7 Years 2026–2030 3.9 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20. Related Party Transactions Throughout the periods covered by consolidated financial statements, Autoliv purchased finished goods from Veoneer. Related party purchases from Veoneer amounted to approximately $70 million and $73 million for the full year 2020 and 2019, respectively. Autoliv also subleases certain office space to Veoneer. However, related party sublease income from Veoneer is not material for 2020 and 2019. Amounts due to and due from related parties as of December 31, 2020 and December 31, 2019 are summarized in the below table: As of (Dollars in millions) December 31, 2020 December 31, 2019 Related party receivables $ 2.0 $ 2.8 Related party payables 1) 27.2 9.7 Related party accrued expenses 1) 10.3 7.7 1) Included in Related party liabilities in the Consolidated Balance Sheet . Related party receivables primarily relate to an agreement between Autoliv and Veoneer. The related party payables are mainly driven by Reseller Agreements entered into 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. The related party accrued expenses consists of indemnification liabilities where Autoliv is required to indemnify Veoneer for certain warranty and recall related claims in connection with the Spin-off. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 21. Segment Information The Company has one operating segment which includes Autoliv’s airbag and seatbelt products and components. The operating results of the operating segment are regularly reviewed by the Company’s chief operating decision maker to assess the performance of the individual operating segment and make decisions about resources to be allocated to the operating segment. The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers. Sales to individual customers representing 10% or more of net sales were: In 2020: Renault 13% (including Nissan and Mitsubishi), VW 11%, Stellantis 11% and Honda 10%. In 2019: Renault 16% (including Nissan and Mitsubishi) and VW 10% and Honda 10%. In 2018: Renault 15% (including Nissan and Mitsubishi) and VW 10%. NET SALES BY REGION 2020 2019 2018 Asia $ 3,043.0 $ 3,176.6 $ 3,194.9 Whereof: China 1,540.8 1,525.3 1,522.2 Japan 732.9 810.3 827.9 Rest of Asia 769.3 841.0 844.8 Americas 2,337.1 2,907.2 2,735.1 Europe 2,067.3 2,463.8 2,748.2 Total $ 7,447.4 $ 8,547.6 $ 8,678.2 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product. External sales in the U.S. amounted to $1,647 million, $2,090 million and $1,943 million in 2020, 2019 and 2018, respectively. Of the external sales, exports from the U.S. to other regions amounted to approximately $348 million, $463 million and $384 million in 2020, 2019 and 2018, respectively. NET SALES BY PRODUCT 2020 2019 2018 Airbag Products 1) $ 4,824.2 $ 5,676.3 $ 5,698.6 Seatbelt Products 1) 2,623.2 2,871.3 2,979.6 Total net sales $ 7,447.4 $ 8,547.6 $ 8,678.2 1) Including Corporate and other sales LONG-LIVED ASSETS 2020 2019 Asia $ 984 $ 948 Whereof: China 508 495 Japan 184 170 Rest of Asia 292 283 Americas 1,874 1,862 Europe 1,030 959 Total $ 3,888 $ 3,769 Long-lived assets in the U.S. amounted to $1,653 million and $1,633 million for 2020 and 2019, respectively. For 2020, $1,235 million (2019, $1,242 million) of the long-lived assets in the U.S. refers to intangible assets, principally from acquisition goodwill. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | 22. Earnings Per Share The computation of basic and diluted EPS under the two-class method were as follows (dollars and shares in millions): 2020 2019 2018 Numerator: Basic and diluted: Net income from continuing operations $ 186.9 $ 461.5 $ 375.9 Net loss from discontinued operations — — (185.5 ) Net income attributable to controlling interest 186.9 461.5 190.4 Participating share awards with dividend equivalent rights 0.0 0.0 0.0 Net income available to common shareholders 186.9 461.5 190.4 Earnings allocated to participating share awards 1) 0.0 0.0 0.0 Net income attributable to common shareholders $ 186.9 $ 461.5 $ 190.4 Denominator: 1) Basic: Weighted average common stock 87.3 87.2 87.1 Add: Weighted average stock options/share awards 0.2 0.2 0.2 Diluted: 87.5 87.4 87.3 Basic EPS: Continuing operations $ 2.14 $ 5.29 $ 4.32 Discontinued operations — — (2.13 ) Basic EPS $ 2.14 $ 5.29 $ 2.19 Diluted EPS: Continuing operations $ 2.14 $ 5.29 $ 4.31 Discontinued operations — — (2.13 ) Diluted EPS $ 2.14 $ 5.29 $ 2.18 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. Anti-dilutive shares outstanding for the years ended December 31, 2020, 2019 and 2018 were immaterial. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. Subsequent Events There were no reportable events subsequent to December 31, 2020. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | 24. Quarterly Financial Data (unaudited) 2020 Q1 Q2 Q3 Q4 Net sales $ 1,845.8 $ 1,047.6 $ 2,037.2 $ 2,516.8 Gross profit 331.0 14.4 399.7 501.8 Income (loss) before income taxes 111.3 (246.6 ) 148.5 277.9 Net Income (loss) 74.9 (174.3 ) 98.8 188.9 Net income (loss) attributable to controlling interest 74.8 (174.7 ) 98.3 188.5 Earnings (loss) per share – basic 0.86 (2.00 ) 1.13 2.16 – diluted 0.86 (2.00 ) 1.12 2.15 Dividends paid 0.62 — — — 2019 Q1 Q2 Q3 Q4 Net sales $ 2,174.0 $ 2,154.7 $ 2,027.7 $ 2,191.2 Gross profit 378.8 399.7 379.1 426.8 Income before income taxes 153.6 150.8 134.4 209.7 Net Income 111.5 109.4 86.0 155.9 Net income attributable to controlling interest 111.4 109.1 85.4 155.6 Earnings per share – basic 1.28 1.25 0.98 1.78 – diluted 1.27 1.25 0.98 1.78 Dividends paid 0.62 0.62 0.62 0.62 Quarterly movements In the second quarter of 2020, COVID-19 negatively impacted Net Income due to several plant closures as customers’ plants were also closed for several weeks and operated at low levels during Q2. A large number of customer plants were closed in April and parts of May, followed by a ramp-up in June. According to IHS, global light vehicle production (LVP) declined by 45% in Q2 2020 compared to Q2 2019. In addition to the decline in global LVP, the slow and volatile restart and ramp-up of production had a significant impact on our sales and profitability in the first half of 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include Autoliv, Inc. and all companies over which Autoliv, Inc. directly or indirectly exercises control, which as a general rule means that the Company owns more than 50% of the voting rights. Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant to the VIE. All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. Investments in affiliated companies in which the Company exercises significant influence over the operations and financial policies, but does not control, are reported using the equity method of accounting. Generally, the Company owns between 20-50% of such investments. |
Business Combinations | BUSINESS COMBINATIONS Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in ASC 805, Business Combinations |
Equity Method Investment | EQUITY METHOD INVESTMENT Investments accounted for under the equity method, means that a proportional share of the equity method investment’s net income increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of Net Income, the proportional share of the net income (loss) is reported as Income from equity method investment. |
Use of Estimates | USE OF ESTIMATES The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of variable consideration for our contracts with customers, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and recalls, restructuring charges, uncertain tax positions, valuation allowances and legal proceedings. Actual results could differ from those estimates. |
Revenue Recognition | REVENUE RECOGNITION In accordance with ASC 606, Revenue from Contracts with Customers In addition, from time to time, the Company may make payments to customers in connection with ongoing and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments unless the payment can be clearly linked to the future business. If the payments are capitalized, the amounts are amortized to revenue as the related goods are transferred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight before control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of goods and services The Company generates revenue from the sale of parts, which includes airbag and seatbelt products and components, to original equipment manufacturers (“OEMs”). The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration for each of the products, including any price concessions, is based on their stand-alone selling prices. The stand-alone selling prices are determined based on the cost-plus margin approach. The Company recognizes revenue for parts primarily at a point in time. For parts with revenue recognized at a point in time, the Company recognizes revenue upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically FOB shipping point). There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and a related asset and associated cost of goods sold and inventory. However, the financial impact of these contracts is immaterial considering the very short production cycles and limited inventory days on hand. The contract balances with customers, included in other current assets, amounted to $19.5 million as of December 31, 2020. The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e. price concessions). Customers typically pay for the parts based on customary business practices. |
Government Grants | GOVERNMENT GRANTS Generally, the Company receives grants related to assets or grants related to income. The Company account for government grants as follows depending on which category the grants fall into. Government grants connected to Capital Expenditure are offset against the capitalized costs of the asset in the balance sheet when: a) all performance obligations connected to the government grant have been fulfilled; and b) the cash has been received. Other government grants including those reimbursing expenses are recognized in the profit and loss when: a) all performance obligations connected to the government grant have been fulfilled; and b) the cash has been received. When the cash has been received but there are outstanding performance obligations connected to the government grants received, the cash received is recognized as other payables and offset against the capitalized costs when the outstanding performance obligations are fulfilled. |
Research, Development and Engineering, Net | RESEARCH, DEVELOPMENT AND ENGINEERING, NET (R,D&E) Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of expense reimbursements from contracts to perform engineering design and product development fulfillment activities related to the production of parts. Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. The aggregate amount of such assets is not significant in any period presented. Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer funded tooling is met or the criteria for capitalization as Property, Plant & Equipment (P,P&E) for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Income as Cost of sales. |
Stock Based Compensation | STOCK BASED COMPENSATION The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation - Stock Compensation |
Income Taxes | INCOME TAXES Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or receivable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. The Company classifies deferred tax assets and liabilities as non-current in the Consolidated Balance Sheet. Tax assets and liabilities are not offset unless attributable to the same tax jurisdiction and netting is possible according to law and, as it relates to payables and receivables, expected to take place in the same period. Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax benefits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. |
Earnings Per Share | EARNINGS PER SHARE The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). The Company’s unvested RSUs and PSs, of which some include the right to receive non-forfeitable dividend equivalents, are considered participating securities. The diluted EPS reflects the potential dilution that could occur if common stock was issued for awards under the Stock Incentive Plan and is calculated using the more dilutive method of either the two-class method or the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. For unvested restricted stock, assumed proceeds under the treasury stock method will include unamortized compensation cost and windfall tax benefits or shortfalls. Post spin-off assumed proceeds under the treasury stock method related to RSUs will only include unamortized compensation cost related to Autoliv employees holding Autoliv RSUs. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. For further details, see Notes 17 and 22. |
Cash Equivalents | CASH EQUIVALENTS The Company considers all highly liquid investment instruments purchased with a maturity of three months or less to be cash equivalents. |
Receivables and Allowance for Expected Credit Losses | RECEIVABLES AND ALLOWANCE FOR EXPECTED CREDIT LOSSES In addition to continuing to individually assess overdue customer balances for expected credit losses, the Company has as of January 1, 2020 implemented a new methodology that reflects the expected credit losses on receivables considering both historical experience as well as forward looking assumptions. The method calculates the expected credit loss for a group of customers by using the customer groups’ average short-term default rates based on officially published credit ratings and the Company’s historical experience. These default rates are considered the Company’s best estimate of the customer’s ability to pay. The Company regularly reassess the customer group’s and the applied customer group’s default rates by using its best judgement when considering changes in customer’s credit ratings, customer’s historical payments and loss experience, current market and economic conditions and the Company’s expectations of future market and economic conditions. There can be no assurance that the amount ultimately realized for receivables will not be materially different than that assumed in the calculation of the allowance for expected credit losses. |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES All derivatives are recognized at fair value. Hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. For further details on the Company’s financial instruments, see Notes 5 and 14. |
Inventories | INVENTORIES The cost of inventories is computed according to the first-in first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company calculates provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment is recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life or the lease term. Amortization on capital leases is recognized with depreciation expense in the Consolidated Statements of Income over the shorter of the assets’ expected life or the lease contract term. Repairs and maintenance are expensed as incurred. |
Leases | LEASES In accordance with ASC 842, Leases 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 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. For further details on the Company’s leases, see Note 4. |
Long-Lived Asset Impairment | LONG-LIVED ASSET IMPAIRMENT The Company evaluates the carrying value and useful lives of long-lived assets, other than goodwill and intangible assets, when indications of impairment are evident or it is likely that the useful lives have decreased, in which case the Company depreciates the assets over the remaining useful lives. Impairment testing is primarily done by using the cash flow method based on undiscounted future cash flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the respective carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the carrying amounts of the long-lived asset are considered recoverable and an impairment cannot be recorded. However, if the carrying amount of a group of assets exceeds the undiscounted cash flows, an entity must then measure the long-lived assets’ fair value to determine whether an impairment loss should be recognized, generally using a discounted cash flow model. |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized but subject to at least an annual review for impairment. Other intangible assets, principally related to acquired technology, are amortized over their useful lives which range from 3 to 25 years. The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. In 2018 and 2019, the Company opted to use a qualitative assessment for impairment testing. The qualitative assessment permits the Company to assess whether it is more than likely than not (i.e. a likelihood of greater than 50%) that goodwill or an indefinite-lived intangible asset is impaired. If the Company concludes based on the qualitative assessment that it is not more likely than not that the fair value of goodwill or an indefinite-lived intangible asset is less than its carrying amount, it would not have to quantitatively determine the asset’s fair value. In conducting its qualitative impairment testings in 2018 and 2019, the Company used the fair value calculation performed in 2017 for its goodwill as the starting point. The Company also considered external factors that could affect the significant inputs used to determine fair value. In 2020 the company performed a quantitative impairment testing by calculating the fair value of its goodwill. The estimated fair market value of goodwill is determined by the discounted cash flow method. The Company discounts projected operating cash flows using its weighted average cost of capital. Estimating the fair value requires the Company to make judgments about appropriate discount rates, growth rates, relevant comparable company earnings multiples and the amount and timing of expected future cash flows. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its estimated fair value, an impairment loss is recognized for the excess of carrying amount over the fair value of the respective reporting unit. To supplement this analysis, the Company compares the market value of its equity, calculated by reference to the quoted market prices of its shares, with the book value of its equity. There were no impairments of goodwill from 2018 through 2020. |
Warranties and Recalls | WARRANTIES AND RECALLS The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs are estimated based on the expected cost of replacing the product and the customer´s cost of carrying out the recall, which is affected by the number of vehicles subject to recall and the cost of labor and materials to remove and replace the defective product . Insurance receivables, related to recall issues covered by the insurance, are included within other current and non-current assets in the Consolidated Balance Sheet s . Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. |
Restructuring Provisions | RESTRUCTURING PROVISIONS The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. Estimates of restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates that restructuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. |
Pension Obligations | PENSION OBLIGATIONS The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefits that each employee will receive for services performed during a specified period of employment. The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any) (see Note 19). |
Contingent Liabilities | CONTINGENT LIABILITIES Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters (see Note 18). The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. The Company records liabilities for claims, lawsuits and proceedings when they are probable and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. The Company believes, based on currently available information, that the resolution of outstanding matters, other than any antitrust related matters described in Note 18, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. |
Translation of Non-U. S. Subsidiaries and Receivables and Liabilities in Non-Functional Currencies | TRANSLATION OF NON-U.S. SUBSIDIARIES The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. The Statements of Income of these subsidiaries is translated into U.S. dollars using the average exchange rates for the year. Translation differences are reflected in equity as a component of OCI. RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES Receivables and liabilities not denominated in functional currencies are converted at year-end exchange rates. Net transaction losses, reflected in the Consolidated Statements of Income amounted to $(23.9) million in 2020, $(15.3) million in 2019 and $(22.1) million in 2018, and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other non-operating items, net if they relate to financial receivables and liabilities. |
New Accounting Standards | NEW ACCOUNTING STANDARDS Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (ASC). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial statements. Adoption of New Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting Accounting Standards Issued But Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes |
Reclassifications | RECLASSIFICATIONS Certain prior-year amounts have been reclassified to conform to current year presentation. |
Financial Instruments | The Company uses derivative financial instruments, “derivatives”, as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quote d prices or for which fair val ue can be measured from actively quoted prices g enerally will have a higher de gree of pricing observability and a lesser degree of judgment utiliz ed in measur ing fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degre e of judgment utilized in meas uring fair value. Under U.S. GAAP, there is a disclosure framework hierarchy associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The Company’s derivatives are all classified as Level 2 of the fair value hierarchy. 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 as of the reporting date, 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 period 2018-2020, the Company did not record any material impairment charges on its long-lived assets for its continuing operations. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Financial Results of Discontinued Operations, Carrying Value of Assets and Liabilities Reclassified as Discontinued Operations and Significant Non-Cash Items of Discontinued Operations | The financial results of Veoneer are presented as loss from discontinued operations, net of income taxes in the Consolidated Statements of Income. The following table presents the financial results of Veoneer for the year 2018 (dollars in millions). Years ended December 31, 2018 Net sales $ 1,122.9 Cost of sales (896.4 ) Gross profit 226.5 Selling, general and administrative expenses (59.7 ) Research, development and engineering expenses, net (224.0 ) Goodwill, Impairment charge — Amortization of intangibles (10.5 ) Other income (expense), net (53.4 ) Operating loss (121.1 ) 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 (150.2 ) Income tax (expense) benefit (43.6 ) Loss from discontinued operations, net of income taxes (193.8 ) Less: Net loss attributable to non-controlling interest (8.3 ) Net loss from discontinued operations $ (185.5 ) The following table presents depreciation, amortization, capital expenditures, acquisition of businesses and significant non-cash items of the discontinued operations related to Veoneer for the year 2018 (dollars in millions). Years ended December 31, 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) | 12 Months Ended |
Dec. 31, 2020 | |
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) Year ended December 31 2020 2019 Operating lease cost $ 45.9 $ 48.5 Short-term lease cost 8.2 6.8 Variable lease cost 2.3 3.6 Sublease income (1.6 ) (2.4 ) Total lease cost $ 54.8 $ 56.5 |
Summary of Other Information | Other information (in millions) Year ended or as of December 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 46.3 $ 47.6 Right-of-use assets obtained in exchange for new operating lease liabilities 48.0 55.9 Weighted-average remaining lease term - operating leases 6 years 7 years Weighted-average discount rate - operating leases 1.9 % 2.3 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities (undiscounted cash flows) are as follows: (in millions) Maturities 2021 $ 37.8 2022 30.6 2023 22.6 2024 16.3 2025 12.7 Thereafter 30.0 Total operating lease payments 150.0 Less imputed interest (9.4 ) Total operating lease liabilities $ 140.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Continuing Operations | The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis for the continuing operations as of December 31, 2020 and December 31, 2019 DECEMBER 31, 2020 DECEMBER 31, 2019 Fair Value Measurements Fair Value Measurements Derivative asset Derivative liability Derivative asset Derivative liability Nominal (Other current (Other current Nominal (Other current (Other current Description volume assets) liabilities) volume assets) liabilities) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign exchange swaps, less than 6 months $ 1,462.7 1) $ 25.2 2) $ 2.7 3) $ 934.2 4) $ 6.0 5) $ 1.8 6) TOTAL DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS $ 1,462.7 $ 25.2 $ 2.7 $ 934.2 $ 6.0 $ 1.8 1 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $1,462.7 million. 2 ) Net amount after deducting for offsetting swaps under ISDA agreements is $25.2 million. 3 ) Net amount after deducting for offsetting swaps under ISDA agreements is $2.7 million. 4 ) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $860.6 million. 5 ) Net amount after deducting for offsetting swaps under ISDA agreements is $5.8 million. 6 ) Net amount after deducting for offsetting swaps under ISDA agreements is $1.6 million. |
Fair Value of Debt | The fair value and carrying value of debt for the continuing operations are summarized in the table below (dollars in millions). DECEMBER 31, 2020 DECEMBER 31, 2019 CARRYING VALUE 1) FAIR VALUE CARRYING VALUE 1) FAIR VALUE LONG-TERM DEBT Bonds $ 1,376.5 $ 1,483.4 $ 1,597.5 $ 1,671.1 Loans 732.5 752.9 128.6 128.6 Other long-term debt 0.6 0.6 — — TOTAL $ 2,109.6 $ 2,236.9 $ 1,726.1 $ 1,799.7 SHORT-TERM DEBT Commercial paper $ — $ — $ 230.7 $ 230.7 Short-term portion of long-term debt 275.0 278.5 112.0 112.1 Overdrafts and other short-term debt 26.8 26.8 25.4 25.3 TOTAL $ 301.8 $ 305.3 $ 368.1 $ 368.1 1) Debt as reported in balance sheet. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | INCOME BEFORE INCOME TAXES 2020 2019 2018 U.S. $ (101.5 ) $ 66.5 $ 47.0 Non-U.S. 392.7 581.9 565.4 Total $ 291.2 $ 648.4 $ 612.4 |
Schedule of Provision for Income Taxes | PROVISION FOR INCOME TAXES 2020 2019 2018 Current U.S. federal $ (40.6 ) $ 18.6 $ 31.6 Non-U.S. 168.8 178.2 192.7 U.S. state and local (1.5 ) 4.8 10.1 Deferred U.S. federal (5.5 ) (2.8 ) 0.8 Non-U.S. (16.5 ) (12.6 ) (0.2 ) U.S. state and local (1.8 ) (0.6 ) (0.1 ) Total income tax expense $ 102.9 $ 185.6 $ 234.9 |
Schedule of Effective Income Tax Rate | EFFECTIVE INCOME TAX RATE 2020 2019 2018 U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Non-Deductible Expenses 3.0 0.3 1.4 Foreign tax rate variances 8.4 4.1 5.5 Tax credits (3.2 ) (1.7 ) (3.9 ) Change in Valuation Allowances — — (3.2 ) Current year losses with no benefit 7.1 0.2 0.5 Net operating loss carry-forwards — (0.1 ) (0.1 ) Changes in tax reserves 1.7 1.7 3.4 Provision to Return (8.8 ) (2.3 ) (0.3 ) Earnings of equity investments (0.2 ) (0.1 ) (0.1 ) Withholding taxes 8.5 2.4 3.5 State taxes, net of federal benefit (0.7 ) 0.4 1.1 Antitrust settlement — — 9.9 U.S. FDII Deduction — (0.5 ) — U.S. GILI Tax — 1.8 1.7 Other, net (1.5 ) 1.4 (2.0 ) Effective income tax rate 35.3 % 28.6 % 38.4 % |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: UNRECOGNIZED TAX BENEFITS 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 59.0 $ 49.6 $ 29.6 Increases as a result of tax positions taken during a prior period 0.7 3.8 24.0 Increases as a result of tax positions taken during the current period 4.2 6.1 4.7 Decreases as a result of tax positions taken during the current period — — (3.1 ) Decreases relating to settlements with taxing authorities — — (3.2 ) Decreases resulting from the lapse of the applicable statute of limitations (1.0 ) (0.6 ) (1.5 ) Translation Difference (0.4 ) 0.1 (0.9 ) Total unrecognized tax benefits at end of year $ 62.5 $ 59.0 $ 49.6 |
Schedule of Deferred Taxes | The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows. DEFERRED TAXES DECEMBER 31 2020 2019 2018 Assets Provisions $ 141.2 $ 105.2 $ 104.9 Costs capitalized for tax 21.3 25.5 18.2 Property, plant and equipment 4.7 9.8 13.0 Retirement Plans 58.7 60.6 50.1 Tax receivables, principally NOL’s 109.7 93.8 113.9 Deferred tax assets before allowances $ 335.6 $ 294.9 $ 300.1 Valuation allowances (67.9 ) (60.7 ) (71.0 ) Total $ 267.7 $ 234.2 $ 229.1 Liabilities Acquired intangibles $ (1.9 ) $ (3.8 ) $ (6.1 ) Statutory tax allowances (0.2 ) (0.2 ) (0.5 ) Distribution taxes (14.5 ) (15.4 ) (22.9 ) Other (4.3 ) (6.5 ) (10.1 ) Total $ (20.9 ) $ (25.9 ) $ (39.6 ) Net deferred tax asset $ 246.8 $ 208.3 $ 189.5 |
Schedule of Valuation Allowances Against Deferred Tax Assets | The following table summarizes the activity related to the Company’s valuation allowances: VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS DECEMBER 31 2020 2019 2018 Allowances at beginning of year $ 60.7 $ 71.0 $ 110.6 Benefits reserved current year 13.9 3.9 6.4 Benefits recognized current year (1.1 ) (10.5 ) (36.9 ) Write-offs and other changes — — — Translation difference (5.6 ) (3.7 ) (9.1 ) Allowances at end of year $ 67.9 $ 60.7 $ 71.0 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Receivables | DECEMBER 31 2020 2019 2018 Receivables $ 1,831.4 $ 1,632.4 $ 1,659.4 Allowance at beginning of year $ (8.5 ) $ (7.3 ) $ (6.3 ) Reversal of allowance 6.7 1.6 0.9 Addition to allowance (10.5 ) (5.1 ) (3.8 ) Write-off against allowance 1.0 2.3 1.6 Translation difference (0.5 ) 0.0 0.3 Allowance at end of year $ (11.8 ) $ (8.5 ) $ (7.3 ) Total receivables, net of allowance $ 1,819.6 $ 1,623.9 $ 1,652.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | DECEMBER 31 2020 2019 2018 Raw material $ 378.8 $ 366.3 $ 370.9 Work in progress 292.3 257.4 277.4 Finished products 220.1 200.4 194.7 Inventories $ 891.2 $ 824.1 $ 843.0 Inventory reserve at beginning of year $ (83.2 ) $ (85.1 ) $ (80.6 ) Reversal of reserve 5.0 11.3 1.4 Addition to reserve (16.2 ) (13.2 ) (13.9 ) Write-off against reserve 7.8 8.3 5.3 Translation difference (6.3 ) (4.5 ) 2.7 Inventory reserve at end of year $ (92.9 ) $ (83.2 ) $ (85.1 ) Total inventories, net of reserve $ 798.3 $ 740.9 $ 757.9 |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | DECEMBER 31 2020 2019 Equity method investments $ 8.7 $ 8.6 Deferred tax assets 281.1 244.6 Income tax receivables 28.2 25.2 Insurance receivables 104.7 68.4 Other non-current assets 43.5 39.6 Total other non-current assets $ 466.2 $ 386.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | DECEMBER 31 2020 2019 Estimated life Land and land improvements $ 120.6 $ 114.3 n/a to 15 Buildings 962.0 888.2 20-40 Machinery and equipment 4,208.3 3,810.5 3-12 Construction in progress 313.9 329.0 n/a Property, plant and equipment $ 5,604.8 $ 5,142.0 Less accumulated depreciation (3,735.7 ) (3,326.3 ) Net of depreciation $ 1,869.1 $ 1,815.7 |
Depreciation Expense | DEPRECIATION INCLUDED IN 2020 2019 2018 Cost of sales $ 327.1 $ 307.0 $ 300.9 Selling, general and administrative expenses 12.9 13.4 13.9 Research, development and engineering expenses, net 20.8 18.7 15.9 Total $ 360.8 $ 339.1 $ 330.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | GOODWILL 2020 2019 Carrying amount at beginning of year $ 1,387.9 $ 1,389.9 Translation differences 10.2 (2.0 ) Carrying amount at end of year $ 1,398.1 $ 1,387.9 |
Schedule of Amortizable Intangibles | AMORTIZABLE INTANGIBLES 2020 2019 Gross carrying amount $ 406.8 $ 398.9 Accumulated amortization (393.2 ) (376.6 ) Carrying value $ 13.6 $ 22.3 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Change in Balance Sheet Position of Restructuring Reserves | This program is expected to be concluded in 2023. December 31 Provision/ Provision/ Cash Translation December 31 2019 Charge Reversal payments difference 2020 Restructuring employee-related $ 55.9 $ 108.5 $ (10.1 ) $ (38.4 ) $ 9.5 $ 125.4 Other 0.2 0.3 — — 0.0 0.5 Total reserve $ 56.1 $ 108.8 $ (10.1 ) $ (38.4 ) $ 9.5 $ 125.9 December 31 Provision/ Provision/ Cash Translation December 31 2018 Charge Reversal payments difference 2019 Restructuring employee-related $ 33.2 $ 56.9 $ (3.0 ) $ (30.3 ) $ (0.9 ) $ 55.9 Other 0.2 — — — 0.0 0.2 Total reserve $ 33.4 $ 56.9 $ (3.0 ) $ (30.3 ) $ (0.9 ) $ 56.1 December 31 Provision/ Provision/ Cash Translation December 31 2017 Charge Reversal payments difference 2018 Restructuring employee-related $ 39.4 $ 9.0 $ (0.1 ) $ (13.6 ) $ (1.5 ) $ 33.2 Other 0.2 0.2 — — (0.2 ) 0.2 Total reserve $ 39.6 $ 9.2 $ (0.1 ) $ (13.6 ) $ (1.7 ) $ 33.4 |
Product Related Liabilities (Ta
Product Related Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Change in Balance Sheet Position of Product Related Liabilities | The table below summarizes the change in the balance sheet position of the product related liabilities (dollars in millions). 2020 2019 2018 Reserve at beginning of the year $ 72.1 $ 62.2 $ 95.6 Change in reserve 303.5 39.3 20.6 Cash payments (36.0 ) (29.1 ) (54.3 ) Translation difference 1.4 (0.3 ) 0.3 Reserve at end of the year $ 341.0 $ 72.1 $ 62.2 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Profile | DEBT PROFILE Total PRINCIPAL AMOUNT BY EXPECTED MATURITY (dollars in millions) 2021 2022 2023 2024 2025 Thereafter long- term Total Bonds $ 275 $ — $ 613 $ 297 $ — $ 470 $ 1,380 $ 1,655 Loans — 366 — — 366 — 732 732 Commercial papers — — — — — — — — Other short-term debt 27 — — — — — — 27 Total principal amount $ 302 $ 366 $ 613 $ 297 $ 366 $ 470 $ 2,112 $ 2,414 1) 1) The difference between reported total debt and total principal amount is mainly related to capitalized debt issuance costs. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Dividends Paid | DIVIDENDS 2020 2019 2018 Cash dividend paid per share $ 0.62 $ 2.48 $ 2.46 Cash dividend declared per share 1) $ — $ 2.48 $ 2.48 1) |
Other Comprehensive Loss | OTHER COMPREHENSIVE LOSS / ENDING BALANCE 1) 2020 2019 2018 Cumulative translation adjustments $ (268.8 ) $ (364.9 ) $ (381.2 ) Net pension liability (78.1 ) (84.0 ) (55.0 ) Distribution to Veoneer — — 13.0 Total (ending balance) $ (346.9 ) $ (448.9 ) $ (423.2 ) Deferred taxes on the pension liability $ 22.8 $ 24.6 $ 15.4 1) The components of Other Comprehensive Loss are net of any related income tax effects. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Payments for Interest and Income Taxes | Payments for interest and income taxes were as follows: 2020 2019 2018 Interest $ 73 $ 72 $ 66 Income taxes 104 192 214 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Number of Restricted Stock Units and Performance Shares | Information on the number of RSUs, PSs and SOs related to the Stock Incentive Plan during the period of 2018 to 2020 is as follows. RSUs 2020 2019 2018 Weighted average fair value at grant date 1) $ 69.58 $ 76.85 $ 131.51 Outstanding at beginning of year 255,195 262,074 188,410 Granted 115,500 109,653 131,246 Shares issued (105,750 ) (86,086 ) (84,425 ) Cancelled/Forfeited/Expired (20,044 ) (30,446 ) (6,485 ) Spin conversion 2) — — 33,328 Outstanding at end of year 3) 244,901 255,195 262,074 1) Weighted average fair value at grant date pre spin-off in 2018. 2 ) Reflects the impact of the cancellation of PS awards outstanding as of the Distribution Date, and the conversion to RSUs in accordance with the conversion factor described above. 3 ) Outstanding at the end of 2018 reflects the RSUs held by employees of Autoliv and Veoneer, in accordance with the conversion factor described above. The corresponding weighted average grant date fair value after applying the conversion factor is $100.74 as of December 31, 2018. PSs 2020 2019 2018 Weighted average fair value at grant date 1) $ 69.86 $ 77.00 $ 105.87 Outstanding at beginning of year 76,321 — 139,891 Change in performance conditions 23,998 12,530 — Granted 2) 75,940 66,542 588 Cancelled/Forfeited/Expired (18,131 ) (2,751 ) (3,076 ) Spin conversion 3) — — (137,403 ) Outstanding at end of year 158,128 76,321 — 1) 2 ) 3) Reflects the replacement of awards due to the spin-off. Outstanding PS awards were converted to RSU awards in accordance with the conversion factor described above. |
Schedule of Options Exercisable | Information on the number of RSUs, PSs and SOs related to the Stock Incentive Plan during the period of 2018 to 2020 is as follows. SOs Number of options Weighted average exercise price Outstanding at Dec 31, 2017 299,949 $ 89.20 Exercised (92,485 ) 86.59 Cancelled/Forfeited/Expired (65,390 ) 88.75 Outstanding at Dec 31, 2018 142,074 63.43 Exercised (20,928 ) 42.11 Spin conversion 1) (5,271 ) 80.40 Outstanding at Dec 31, 2019 2) 115,875 66.70 Exercised (14,238 ) 55.55 Cancelled/Forfeited/Expired (11,462 ) 69.25 Outstanding at Dec 31, 2020 90,175 $ 68.13 OPTIONS EXERCISABLE At December 31, 2018 142,074 $ 63.43 At December 31, 2019 115,875 66.70 At December 31, 2020 90,175 68.13 1) 2) |
Summary of Stock Options Outstanding and Exercisable | The following summarizes information about SOs outstanding and exercisable at December 31, 2020: RANGE OF EXERCISE PRICES Number outstanding & exercisable Remaining contract life (in years) Weighted average exercise price $47.52 6,607 1.14 47.52 $49.07 13,612 2.14 49.07 $51.74 3,799 0.14 51.74 $67.29 26,965 3.14 67.29 $80.40 39,192 4.13 80.40 90,175 3.14 68.13 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Pension Plans, Defined Benefit | |
Schedule of Changes in Benefit Obligations and Plan Assets | CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. 2020 2019 2020 2019 Benefit obligation at beginning of year $ 400.1 $ 332.1 $ 252.6 $ 216.9 Service cost 7.5 6.9 12.2 10.7 Interest cost 12.2 14.2 5.8 6.4 Actuarial (gain) loss due to: Change in discount rate 46.4 67.8 12.9 27.7 Experience (5.0 ) 3.0 0.1 (1.2 ) Other assumption changes 3.2 (0.4 ) (11.2 ) (1.0 ) Benefits paid (3.8 ) (23.5 ) (9.0 ) (8.4 ) Plan settlements (34.4 ) — (0.4 ) (1.2 ) Special termination benefits — — 0.0 0.5 Other — — 1.5 1.6 Translation difference — — 14.9 0.6 Benefit obligation at end of year $ 426.2 $ 400.1 $ 279.4 $ 252.6 Fair value of plan assets at beginning of year $ 323.8 $ 273.0 $ 88.7 $ 77.8 Actual return on plan assets 52.5 67.0 8.8 8.9 Company contributions 16.5 7.3 9.7 9.5 Benefits paid (3.8 ) (23.5 ) (9.0 ) (8.4 ) Plan settlements (34.4 ) — (0.4 ) (1.2 ) Translation difference — — 5.0 2.1 Fair value of plan assets at end of year $ 354.6 $ 323.8 $ 102.8 $ 88.7 Funded status recognized in the balance sheet $ (71.6 ) $ (76.3 ) $ (176.6 ) $ (163.9 ) |
Schedule of Components of Net Periodic Benefit Cost | COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS U.S. (Dollars in millions) 2020 2019 2018 Service cost $ 7.5 $ 6.9 $ 8.7 Interest cost 12.2 14.2 12.8 Expected return on plan assets (16.3 ) (13.5 ) (20.4 ) Amortization of prior service credit 0.0 0.0 0.1 Amortization of actuarial loss 2.8 1.9 2.2 Settlement loss 7.2 — — Net periodic benefit cost $ 13.4 $ 9.5 $ 3.4 Non-U.S. (Dollars in millions) 2020 2019 2018 Service cost $ 12.2 $ 10.7 $ 10.8 Interest cost 5.8 6.4 5.7 Expected return on plan assets (1.7 ) (1.9 ) (2.0 ) Amortization of prior service costs 0.4 0.3 0.3 Amortization of actuarial loss 2.3 0.9 1.4 Settlement loss 0.1 0.6 0.2 Special termination benefits 0.0 0.5 0.5 Net periodic benefit cost $ 19.1 $ 17.5 $ 16.9 |
Schedule of Components of Accumulated Other Comprehensive Income Before Tax | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX AS OF DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2020 2019 2020 2019 Net actuarial loss $ 61.5 $ 63.1 $ 41.9 $ 47.6 Prior service cost 0.0 0.1 3.5 3.7 Total accumulated other comprehensive income recognized in the balance sheet $ 61.5 $ 63.2 $ 45.4 $ 51.3 |
Schedule of Changes in Accumulated Other Comprehensive Income Before Tax | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX FOR THE PERIODS ENDED DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2020 2019 2020 2019 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 63.2 $ 48.1 $ 51.3 $ 33.9 Net actuarial (gain) loss 8.3 16.9 (5.2 ) 19.1 Amortization of prior service credit (cost) 0.0 0.0 (0.4 ) (0.3 ) Amortization of actuarial loss (10.0 ) (1.8 ) (2.3 ) (1.5 ) Translation difference — — 2.0 0.1 Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 61.5 $ 63.2 $ 45.4 $ 51.3 |
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2020 2019 2020 2019 Projected Benefit Obligation (PBO) $ 426.2 $ 400.1 $ 179.2 $ 169.3 Accumulated Benefit Obligation (ABO) 419.1 384.3 142.7 127.2 Fair value of plan assets 354.6 323.8 4.0 3.8 |
Schedule of Assumptions Used | ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31 U.S. Non-U.S. 1) % WEIGHTED AVERAGE 2020 2019 2020 2019 Discount rate 2.35 3.25 0.25-2.70 0.25-2.70 Rate of increases in compensation level 2.65 2.65 1.80-4.00 2.00-5.00 ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR YEARS ENDED DECEMBER 31 U.S. % WEIGHTED AVERAGE 2020 2019 2018 Discount rate 3.25 4.35 3.55 Rate of increases in compensation level 2.65 2.65 2.65 Expected long-term rate of return on assets 5.05 5.05 7.08 Non-U.S. 1) % WEIGHTED AVERAGE 2020 2019 2018 Discount rate 0.25-2.70 0.50-3.25 0.25-3.25 Rate of increases in compensation level 2.00-5.00 2.00-5.00 2.00-5.00 Expected long-term rate of return on assets 1.50-2.25 2.25-2.50 2.25-2.50 1) The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent around 83% of the total Non-U.S. projected benefit obligation. |
Schedule of Fair Value of Total Plan Assets | FAIR VALUE OF TOTAL PLAN ASSETS FOR YEARS ENDED DECEMBER 31 U.S. U.S. Non-U.S. ASSETS CATEGORY IN % WEIGHTED AVERAGE Target allocation 2020 2019 2020 2019 Equity securities 40 42 40 0 0 Debt instruments 60 57 60 77 79 Other assets — 1 0 23 21 Total 100 100 100 100 100 |
Schedule of Fair Value of Company's Plan Assets | The following table summarizes the fair value of the Company’s U.S. and non-U.S. defined benefit pension plan assets (dollars in millions): (Dollars in millions) Fair value measurement at December 31, 2020 Fair value measurement at December 31, 2019 Assets Non-U.S. Bonds Corporate $ 79.6 $ 70.4 Insurance Contracts 17.5 14.7 Other Investments 9.6 6.2 Assets at fair value Level 2 106.7 91.3 Investments measured at net asset value (NAV): Common collective trusts 350.7 321.2 Total $ 457.4 $ 412.5 |
Schedule of Expected Benefits Payments | PENSION BENEFITS EXPECTED PAYMENTS (dollars in millions) U.S. Non-U.S. 2021 21 9 2022 22 11 2023 23 11 2024 29 12 2025 26 13 Years 2026-2030 131 76 |
Postretirement Benefits Other Than Pensions | |
Schedule of Changes in Benefit Obligations and Plan Assets | CHANGES IN BENEFIT OBLIGATION FOR POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 (Dollars in millions) 2020 2019 Benefit obligation at beginning of year $ 18.4 $ 15.5 Service cost 0.2 0.2 Interest cost 0.6 0.6 Actuarial loss (gain) 2.1 2.2 Benefits paid (0.4 ) (0.3 ) Other 0.3 0.2 Benefit obligation at end of year $ 21.2 $ 18.4 |
Schedule of Components of Net Periodic Benefit Cost | COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE POST RETIREMENT BENEFIT PLANS OTHER THAN PENSIONS PERIOD ENDED DECEMBER 31 (Dollars in millions) 2020 2019 2018 Service cost $ 0.2 $ 0.2 $ 0.3 Interest cost 0.6 0.6 0.6 Amortization of prior service cost (2.1 ) (2.2 ) (2.2 ) Amortization of actuarial loss (0.0 ) (0.3 ) (0.3 ) Net periodic benefit (credit) $ (1.3 ) $ (1.7 ) $ (1.6 ) |
Schedule of Components of Accumulated Other Comprehensive Income Before Tax | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME BEFORE TAX ASSOCIATED WITH POSTRETIREMENT BENEFIT PLANS OTHER THAN PENSIONS AS OF DECEMBER 31 U.S. (Dollars in millions) 2020 2019 Net actuarial loss (gain) $ (0.1 ) $ 2.0 Prior service cost (credit) 4.0 6.1 Total accumulated other comprehensive loss (income) recognized in the balance sheet $ 3.9 $ 8.1 |
Schedule of Expected Benefits Payments | The estimated future benefit payments for the postretirement benefits set forth below reflect expected future service as appropriate (dollars in millions). POSTRETIREMENT BENEFITS (Dollars in millions) EXPECTED PAYMENTS 2021 0.5 2022 0.6 2023 0.6 2024 0.7 2025 0.7 Years 2026–2030 3.9 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Summary of Amounts Due to and Due from Related Party | Amounts due to and due from related parties as of December 31, 2020 and December 31, 2019 are summarized in the below table: As of (Dollars in millions) December 31, 2020 December 31, 2019 Related party receivables $ 2.0 $ 2.8 Related party payables 1) 27.2 9.7 Related party accrued expenses 1) 10.3 7.7 1) Included in Related party liabilities in the Consolidated Balance Sheet . |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales Attributed to Geographic Areas | NET SALES BY REGION 2020 2019 2018 Asia $ 3,043.0 $ 3,176.6 $ 3,194.9 Whereof: China 1,540.8 1,525.3 1,522.2 Japan 732.9 810.3 827.9 Rest of Asia 769.3 841.0 844.8 Americas 2,337.1 2,907.2 2,735.1 Europe 2,067.3 2,463.8 2,748.2 Total $ 7,447.4 $ 8,547.6 $ 8,678.2 |
Schedule of Net Sales By Product | NET SALES BY PRODUCT 2020 2019 2018 Airbag Products 1) $ 4,824.2 $ 5,676.3 $ 5,698.6 Seatbelt Products 1) 2,623.2 2,871.3 2,979.6 Total net sales $ 7,447.4 $ 8,547.6 $ 8,678.2 |
Schedule of Long-Lived Assets | LONG-LIVED ASSETS 2020 2019 Asia $ 984 $ 948 Whereof: China 508 495 Japan 184 170 Rest of Asia 292 283 Americas 1,874 1,862 Europe 1,030 959 Total $ 3,888 $ 3,769 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS under Two-class Method | The computation of basic and diluted EPS under the two-class method were as follows (dollars and shares in millions): 2020 2019 2018 Numerator: Basic and diluted: Net income from continuing operations $ 186.9 $ 461.5 $ 375.9 Net loss from discontinued operations — — (185.5 ) Net income attributable to controlling interest 186.9 461.5 190.4 Participating share awards with dividend equivalent rights 0.0 0.0 0.0 Net income available to common shareholders 186.9 461.5 190.4 Earnings allocated to participating share awards 1) 0.0 0.0 0.0 Net income attributable to common shareholders $ 186.9 $ 461.5 $ 190.4 Denominator: 1) Basic: Weighted average common stock 87.3 87.2 87.1 Add: Weighted average stock options/share awards 0.2 0.2 0.2 Diluted: 87.5 87.4 87.3 Basic EPS: Continuing operations $ 2.14 $ 5.29 $ 4.32 Discontinued operations — — (2.13 ) Basic EPS $ 2.14 $ 5.29 $ 2.19 Diluted EPS: Continuing operations $ 2.14 $ 5.29 $ 4.31 Discontinued operations — — (2.13 ) Diluted EPS $ 2.14 $ 5.29 $ 2.18 1) The Company’s unvested RSUs and PSs, of which some included the right to receive non-forfeitable dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Data | 2020 Q1 Q2 Q3 Q4 Net sales $ 1,845.8 $ 1,047.6 $ 2,037.2 $ 2,516.8 Gross profit 331.0 14.4 399.7 501.8 Income (loss) before income taxes 111.3 (246.6 ) 148.5 277.9 Net Income (loss) 74.9 (174.3 ) 98.8 188.9 Net income (loss) attributable to controlling interest 74.8 (174.7 ) 98.3 188.5 Earnings (loss) per share – basic 0.86 (2.00 ) 1.13 2.16 – diluted 0.86 (2.00 ) 1.12 2.15 Dividends paid 0.62 — — — 2019 Q1 Q2 Q3 Q4 Net sales $ 2,174.0 $ 2,154.7 $ 2,027.7 $ 2,191.2 Gross profit 378.8 399.7 379.1 426.8 Income before income taxes 153.6 150.8 134.4 209.7 Net Income 111.5 109.4 86.0 155.9 Net income attributable to controlling interest 111.4 109.1 85.4 155.6 Earnings per share – basic 1.28 1.25 0.98 1.78 – diluted 1.27 1.25 0.98 1.78 Dividends paid 0.62 0.62 0.62 0.62 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - Segment | Jun. 29, 2018 | Jun. 28, 2018 | Dec. 31, 2020 |
Basis Of Presentation [Line Items] | |||
Number of reportable segments | 2 | ||
Spin-off | Veoneer, Inc. | |||
Basis Of Presentation [Line Items] | |||
Date of distribution | Jun. 29, 2018 | ||
Maximum | |||
Basis Of Presentation [Line Items] | |||
Percentage of investments in affiliated companies | 50.00% | ||
Minimum | |||
Basis Of Presentation [Line Items] | |||
Percentage of voting right | 50.00% | ||
Percentage of investments in affiliated companies | 20.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Contract with customer, assets | $ 19,500,000 | ||
Impairments of goodwill | 0 | $ 0 | $ 0 |
Net transaction losses | $ (23,900,000) | (15,300,000) | (22,100,000) |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Other intangible assets, useful lives | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Other intangible assets, useful lives | 25 years | ||
Reimbursements | |||
Significant Accounting Policies [Line Items] | |||
Reimbursements from customers | $ 181,000,000 | $ 199,000,000 | $ 192,000,000 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - Spin-off - Veoneer, Inc. - USD ($) $ in Millions | Jun. 29, 2018 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | Jun. 30, 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 | $ 76.3 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Results of Discontinued Operations (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loss from discontinued operations, net of income taxes | $ (193.8) |
Less: Net loss attributable to non-controlling interest | (8.3) |
Net loss from discontinued operations | (185.5) |
Spin-off | Veoneer, Inc. | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net sales | 1,122.9 |
Cost of sales | (896.4) |
Gross profit | 226.5 |
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 | (121.1) |
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 | (150.2) |
Income tax (expense) benefit | (43.6) |
Loss from discontinued operations, net of income taxes | (193.8) |
Less: Net loss attributable to non-controlling interest | (8.3) |
Net loss from discontinued operations | $ (185.5) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Significant Non-Cash Items of Discontinued Operations (Detail) - Spin-off - Veoneer, Inc. $ in Millions | 12 Months Ended |
Dec. 31, 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) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020, 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 | 46 years |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 45.9 | $ 48.5 |
Short-term lease cost | 8.2 | 6.8 |
Variable lease cost | 2.3 | 3.6 |
Sublease income | (1.6) | (2.4) |
Total lease cost | $ 54.8 | $ 56.5 |
Leases - Summary of Other Infor
Leases - Summary of Other Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases Operating [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 46.3 | $ 47.6 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 48 | $ 55.9 |
Weighted-average remaining lease term - operating leases | 6 years | 7 years |
Weighted-average discount rate - operating leases | 1.90% | 2.30% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 | $ 37.8 |
2022 | 30.6 |
2023 | 22.6 |
2024 | 16.3 |
2025 | 12.7 |
Thereafter | 30 |
Total operating lease payments | 150 |
Less imputed interest | (9.4) |
Total operating lease liabilities | $ 140.6 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset impairment charges | $ 0 | $ 0 | $ 0 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset impairment charges | 0 | 0 | 0 |
Not Designated as Hedging Instrument | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivatives designated as hedging instruments | 0 | 0 | |
Gains and losses recognized in other non-operating items, net | $ 18,500,000 | $ 3,500,000 | $ (1,500,000) |
Financial Assets and Liabilitie
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 ($) | Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | $ 1,462,700,000 | $ 934,200,000 | ||
Other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset (Other current assets) | 25,200,000 | 6,000,000 | ||
Other current liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability (Other current liabilities) | 2,700,000 | 1,800,000 | ||
Less Than Six Months | Foreign Exchange Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Nominal volume | 1,462,700,000 | [1] | 934,200,000 | [2] |
Less Than Six Months | Foreign Exchange Swaps | Other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset (Other current assets) | 25,200,000 | [3] | 6,000,000 | [4] |
Less Than Six Months | Foreign Exchange Swaps | Other current liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability (Other current liabilities) | $ 2,700,000 | [5] | $ 1,800,000 | [6] |
[1] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $1,462.7 million. | |||
[2] | Net nominal amount after deducting for offsetting swaps under ISDA agreements is $860.6 million. | |||
[3] | Net amount after deducting for offsetting swaps under ISDA agreements is $25.2 million. | |||
[4] | Net amount after deducting for offsetting swaps under ISDA agreements is $5.8 million. | |||
[5] | Net amount after deducting for offsetting swaps under ISDA agreements is $2.7 million. | |||
[6] | Net amount after deducting for offsetting swaps under ISDA agreements is $1.6 million. |
Financial Assets and Liabilit_2
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Continuing Operations (Parenthetical) (Detail) - Not Designated as Hedging Instrument - Foreign Exchange Swaps - Fair Value, Measurements, Recurring - Less Than Six Months - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative notional volume, amount after offsetting swaps | $ 1,462.7 | $ 860.6 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, amount after offsetting swaps | 25.2 | 5.8 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, amount after offsetting swaps | $ 2.7 | $ 1.6 |
Fair Value of Debt (Detail)
Fair Value of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 2,109.6 | $ 1,726.1 |
Short-term debt | [1] | 301.8 | 368.1 |
Long-term debt, fair value | 2,236.9 | 1,799.7 | |
Short-term debt, fair value | 305.3 | 368.1 | |
Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 230.7 | |
Short-term debt, fair value | 230.7 | ||
Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 1,376.5 | 1,597.5 |
Long-term debt, fair value | 1,483.4 | 1,671.1 | |
Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 732.5 | 128.6 |
Long-term debt, fair value | 752.9 | 128.6 | |
Other Long-term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 0.6 | |
Long-term debt, fair value | 0.6 | ||
Overdrafts and Other Short-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 26.8 | 25.4 |
Short-term debt, fair value | 26.8 | 25.3 | |
Short-Term Portion of Long-Term Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt | [1] | 275 | 112 |
Short-term debt, fair value | $ 278.5 | $ 112.1 | |
[1] | Debt as reported in balance sheet. |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ (101.5) | $ 66.5 | $ 47 | ||||||||
Non-U.S. | 392.7 | 581.9 | 565.4 | ||||||||
Income from continuing operations before income taxes | $ 277.9 | $ 148.5 | $ (246.6) | $ 111.3 | $ 209.7 | $ 134.4 | $ 150.8 | $ 153.6 | $ 291.2 | $ 648.4 | $ 612.4 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current U.S. federal | $ (40.6) | $ 18.6 | $ 31.6 |
Current Non-U.S. | 168.8 | 178.2 | 192.7 |
Current U.S. state and local | (1.5) | 4.8 | 10.1 |
Deferred U.S. federal | (5.5) | (2.8) | 0.8 |
Deferred Non-U.S. | (16.5) | (12.6) | (0.2) |
Deferred U.S. state and local | (1.8) | (0.6) | (0.1) |
Total income tax expense | $ 102.9 | $ 185.6 | $ 234.9 |
Effective Income Tax Rate (Deta
Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Non-Deductible Expenses | 3.00% | 0.30% | 1.40% |
Foreign tax rate variances | 8.40% | 4.10% | 5.50% |
Tax credits | (3.20%) | (1.70%) | (3.90%) |
Change in Valuation Allowances | (3.20%) | ||
Current year losses with no benefit | 7.10% | 0.20% | 0.50% |
Net operating loss carry-forwards | (0.10%) | (0.10%) | |
Changes in tax reserves | 1.70% | 1.70% | 3.40% |
Provision to Return | (8.80%) | (2.30%) | (0.30%) |
Earnings of equity investments | (0.20%) | (0.10%) | (0.10%) |
Withholding taxes | 8.50% | 2.40% | 3.50% |
State taxes, net of federal benefit | (0.70%) | 0.40% | 1.10% |
Antitrust settlement | 9.90% | ||
U.S. FDII Deduction | (0.50%) | ||
U.S. GILI Tax | 1.80% | 1.70% | |
Other, net | (1.50%) | 1.40% | (2.00%) |
Effective income tax rate | 35.30% | 28.60% | 38.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | $ 328 | ||
Net operating loss carry-forwards with have no expiration date | $ 321 | ||
Net Operating loss carry-forwards, expiration date | 2025 | ||
Tax credit carry-forwards | $ 25 | ||
Tax credit carry-forwards, expiration date | 2026 | ||
Effective income tax rate | 35.30% | 28.60% | 38.40% |
Unrecognized tax benefits related to prior years | $ 65.4 | ||
Unrecognized accrued interest and penalties | $ 10.2 | $ 8.2 | |
Net increase to income tax reserves for unrecognized tax benefits based on tax positions taken in prior year | 0.5 | ||
Unrecognized tax benefit reclassified to deferred tax assets to offset excess foreign tax credit carryforwards | 24 | ||
Net increase to income tax reserves for unrecognized tax benefits based on tax positions taken in current year | 4.2 | ||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 46.1 | ||
Current Tax Payable Part of Other Current Liabilities | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | 3.1 | ||
Non-Current Tax Payable Part of Other Non-current Liabilities | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits reserve that would impact effective tax rate if released into income | $ 43 | ||
Minimum | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 20.00% | ||
Maximum | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 30.00% |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at beginning of year | $ 59 | $ 49.6 | $ 29.6 |
Increases as a result of tax positions taken during a prior period | 0.7 | 3.8 | 24 |
Increases as a result of tax positions taken during the current period | 4.2 | 6.1 | 4.7 |
Decreases as a result of tax positions taken during the current period | (3.1) | ||
Decreases relating to settlements with taxing authorities | (3.2) | ||
Decreases resulting from the lapse of the applicable statute of limitations | (1) | (0.6) | (1.5) |
Translation Difference | (0.4) | 0.1 | (0.9) |
Total unrecognized tax benefits at end of year | $ 62.5 | $ 59 | $ 49.6 |
Deferred Taxes (Detail)
Deferred Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Provisions | $ 141.2 | $ 105.2 | $ 104.9 | |
Costs capitalized for tax | 21.3 | 25.5 | 18.2 | |
Property, plant and equipment | 4.7 | 9.8 | 13 | |
Retirement Plans | 58.7 | 60.6 | 50.1 | |
Tax receivables, principally NOL’s | 109.7 | 93.8 | 113.9 | |
Deferred tax assets before allowances | 335.6 | 294.9 | 300.1 | |
Valuation allowances | (67.9) | (60.7) | (71) | $ (110.6) |
Total | 267.7 | 234.2 | 229.1 | |
Acquired intangibles | (1.9) | (3.8) | (6.1) | |
Statutory tax allowances | (0.2) | (0.2) | (0.5) | |
Distribution taxes | (14.5) | (15.4) | (22.9) | |
Other | (4.3) | (6.5) | (10.1) | |
Total | (20.9) | (25.9) | (39.6) | |
Net deferred tax asset | $ 246.8 | $ 208.3 | $ 189.5 |
Valuation Allowance Against Def
Valuation Allowance Against Deferred Tax Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Allowances at beginning of year | $ 60.7 | $ 71 | $ 110.6 |
Benefits reserved current year | 13.9 | 3.9 | 6.4 |
Benefits recognized current year | (1.1) | (10.5) | (36.9) |
Translation difference | (5.6) | (3.7) | (9.1) |
Allowances at end of year | $ 67.9 | $ 60.7 | $ 71 |
Receivables (Detail)
Receivables (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Receivables | $ 1,831.4 | $ 1,632.4 | $ 1,659.4 |
Allowance at beginning of year | (8.5) | (7.3) | (6.3) |
Reversal of allowance | 6.7 | 1.6 | 0.9 |
Addition to allowance | (10.5) | (5.1) | (3.8) |
Write-off against allowance | 1 | 2.3 | 1.6 |
Translation difference | (0.5) | 0 | 0.3 |
Allowance at end of year | (11.8) | (8.5) | (7.3) |
Total receivables, net of allowance | $ 1,819.6 | $ 1,623.9 | $ 1,652.1 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Raw material | $ 378.8 | $ 366.3 | $ 370.9 |
Work in progress | 292.3 | 257.4 | 277.4 |
Finished products | 220.1 | 200.4 | 194.7 |
Inventories | 891.2 | 824.1 | 843 |
Inventory reserve at beginning of year | (83.2) | (85.1) | (80.6) |
Reversal of reserve | 5 | 11.3 | 1.4 |
Addition to reserve | (16.2) | (13.2) | (13.9) |
Write-off against reserve | 7.8 | 8.3 | 5.3 |
Translation difference | (6.3) | (4.5) | 2.7 |
Inventory reserve at end of year | (92.9) | (83.2) | (85.1) |
Total inventories, net of reserve | $ 798.3 | $ 740.9 | $ 757.9 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Non-current Assets | ||
Equity method investments | $ 8.7 | $ 8.6 |
Deferred tax assets | 281.1 | 244.6 |
Income tax receivables | 28.2 | 25.2 |
Insurance receivables | 104.7 | 68.4 |
Other non-current assets | 43.5 | 39.6 |
Total other non-current assets | $ 466.2 | $ 386.4 |
Other Non-Current Assets - Addi
Other Non-Current Assets - Additional Information (Detail) - Investment | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets Noncurrent [Line Items] | ||
Number of equity method investments in companies | 1 | 1 |
Malaysia | Autoliv-Hirotako Safety Sdn Bhd (Parent And Subsidiaries) | ||
Other Assets Noncurrent [Line Items] | ||
Percentage of ownership | 49.00% |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Land and land improvements | $ 120.6 | $ 114.3 |
Buildings | 962 | 888.2 |
Machinery and equipment | 4,208.3 | 3,810.5 |
Construction in progress | 313.9 | 329 |
Property, plant and equipment | 5,604.8 | 5,142 |
Less accumulated depreciation | (3,735.7) | (3,326.3) |
Net of depreciation | $ 1,869.1 | $ 1,815.7 |
Land and Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Machinery and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Machinery and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 12 years | |
Buildings | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Buildings | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years |
Depreciation Included in Proper
Depreciation Included in Property Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 360.8 | $ 339.1 | $ 330.7 |
Cost of Sales | |||
Property Plant And Equipment [Line Items] | |||
Depreciation | 327.1 | 307 | 300.9 |
Selling, General and Administrative Expenses | |||
Property Plant And Equipment [Line Items] | |||
Depreciation | 12.9 | 13.4 | 13.9 |
Research, Development and Engineering Expenses, net | |||
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 20.8 | $ 18.7 | $ 15.9 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Asset impairment charges | $ 0 | $ 0 | $ 0 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Carrying amount at beginning of year | $ 1,387.9 | $ 1,389.9 |
Translation differences | 10.2 | (2) |
Carrying amount at end of year | $ 1,398.1 | $ 1,387.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 1,398,100,000 | $ 1,387,900,000 | $ 1,389,900,000 |
Goodwill impairment charge | 0 | 0 | 0 |
Amortization expense on intangible assets | 10,000,000 | 11,500,000 | 11,300,000 |
2021 | 9,900,000 | ||
2022 | 3,500,000 | ||
2023 | 100,000 | ||
2024 | 100,000 | ||
2025 | 0 | ||
Continuing Operations | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill impairment charge | 0 | $ 0 | $ 0 |
1997 Merger of Autoliv AB and Automotive Safety Products Division of Morton International, Inc. | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 1,200,000,000 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangibles (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortizable intangibles, Gross carrying amount | $ 406.8 | $ 398.9 |
Amortizable intangibles, Accumulated amortization | (393.2) | (376.6) |
Amortizable intangibles, Carrying value | $ 13.6 | $ 22.3 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring reserve balance | $ 125.9 | $ 56.1 | $ 33.4 | $ 39.6 | |
Provision | 108.8 | 56.9 | $ 9.2 | ||
Structural Efficiency Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring reserve balance | $ 57 | 23 | |||
Provision | 56.9 | ||||
Expected restructuring cost | $ 52 | ||||
Footprint Optimization Activities | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring reserve balance | $ 36 |
Schedule of Changes in Balance
Schedule of Changes in Balance Sheet Position of Restructuring Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | $ 56.1 | $ 33.4 | $ 39.6 |
Provision/ Charge | 108.8 | 56.9 | 9.2 |
Provision/ Reversal | (10.1) | (3) | (0.1) |
Cash payments | (38.4) | (30.3) | (13.6) |
Translation difference | 9.5 | (0.9) | (1.7) |
Restructuring reserve, ending balance | 125.9 | 56.1 | 33.4 |
Restructuring employee-related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 55.9 | 33.2 | 39.4 |
Provision/ Charge | 108.5 | 56.9 | 9 |
Provision/ Reversal | (10.1) | (3) | (0.1) |
Cash payments | (38.4) | (30.3) | (13.6) |
Translation difference | 9.5 | (0.9) | (1.5) |
Restructuring reserve, ending balance | 125.4 | 55.9 | 33.2 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve, beginning balance | 0.2 | 0.2 | 0.2 |
Provision/ Charge | 0.3 | 0.2 | |
Translation difference | 0 | 0 | (0.2) |
Restructuring reserve, ending balance | $ 0.5 | $ 0.2 | $ 0.2 |
Product Related Liabilities - A
Product Related Liabilities - Additional Information (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Product Warranty Liability [Line Items] | |
Insurance receivables related to recall issues | $ 343 |
Accrued Expenses | |
Product Warranty Liability [Line Items] | |
Reserves for indemnification liabilities | $ 10 |
Summary of Change in Balance Sh
Summary of Change in Balance Sheet Position of Product Related Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |||
Reserve at beginning of the year | $ 72.1 | $ 62.2 | $ 95.6 |
Change in reserve | 303.5 | 39.3 | 20.6 |
Cash payments | (36) | (29.1) | (54.3) |
Translation difference | 1.4 | (0.3) | 0.3 |
Reserve at end of the year | $ 341 | $ 72.1 | $ 62.2 |
Debt and Credit Agreements - Ad
Debt and Credit Agreements - Additional Information (Detail) € in Millions, kr in Millions | Jun. 18, 2018EUR (€) | Dec. 31, 2020EUR (€) | Jun. 30, 2020SEK (kr) | Jul. 31, 2016USD ($)BankOption | Dec. 31, 2020USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2020SEK (kr) | Dec. 31, 2019USD ($) | Jun. 30, 2018 | |
Line Of Credit Facility [Line Items] | ||||||||||
Short-term debt | [1] | $ 301,800,000 | $ 368,100,000 | |||||||
Short-term debt excluding commercial paper | 487,000,000 | |||||||||
Short-term debt excluding commercial paper, utilized amount | $ 27,000,000 | |||||||||
Weighted average interest rate on short-term debt | 3.00% | 3.00% | 3.00% | |||||||
Long-term debt | [1] | $ 2,109,600,000 | $ 1,726,100,000 | |||||||
Money market funds | 392,000,000 | |||||||||
Banks Rated BBB+ | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Calculated risk amount | 50,000,000 | |||||||||
Banks Rated A- or Above | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Calculated risk amount | 150,000,000 | |||||||||
Swedish Program | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Commercial paper | 855,000,000 | kr 7,000 | ||||||||
United States Program | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Long term debt issued | 0 | |||||||||
Commercial paper | 1,000,000,000 | |||||||||
Swedish Program and U.S. Program | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Long term debt issued | $ 0 | |||||||||
Senior Unsecured Revolving Credit Facility Agreement | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt Instrument Term | 5 years | |||||||||
Revolving credit facility amount | $ 1,100,000,000 | |||||||||
Number of options to request banks for extension of debt instruments maturity | Option | 2 | |||||||||
Extended maturity | Jul. 31, 2023 | |||||||||
Percentage of commitment fee as compared to applicable margin rate | 35.00% | |||||||||
Senior Unsecured Revolving Credit Facility Agreement | Syndicated by Banks | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Number of banks syndicated on revolving credit facility | Bank | 14 | |||||||||
Senior Unsecured Revolving Credit Facility Agreement | Syndicated by Banks | Banks Rated BBB+ | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Line of credit facility commitment fee percent | 0.375% | |||||||||
Loan from Swedish Export Credit Corporation | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Repayment of debt | kr | kr 1,200 | |||||||||
Floating rate basis | 3M STIBOR | |||||||||
Percentage of margin | 0.54% | |||||||||
Debt Instrument Term | 3 years | |||||||||
Long-term loan facility utilized | kr | kr 6,000 | |||||||||
Eurobond | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt Instrument Term | 5 years | |||||||||
Long term debt issued | € | € 500 | |||||||||
Notes stated percentage | 0.75% | |||||||||
Commercial Paper | Maximum | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Money market funds | $ 2,000,000,000 | |||||||||
Local Debt | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Short-term debt | 27,000,000 | |||||||||
USPP Bond Maturing in April 2021 | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Short-term debt | $ 275,000,000 | |||||||||
18-Month Floating Rate Notes | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Repayment of debt | € | € 100 | |||||||||
Floating rate basis | 3M Euribor | |||||||||
Percentage of margin | 0.50% | |||||||||
Loan Maturing in 2022 | Loan from Swedish Export Credit Corporation | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Floating rate basis | 3M STIBOR | |||||||||
Percentage of margin | 1.35% | |||||||||
Long-term loan facility utilized | kr | kr 3,000 | |||||||||
Loan Maturing in 2025 | Loan from Swedish Export Credit Corporation | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Floating rate basis | 3M STIBOR | |||||||||
Percentage of margin | 1.85% | |||||||||
Long-term loan facility utilized | kr | kr 3,000 | |||||||||
Senior Notes Seven Year | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt Instrument Term | 7 years | |||||||||
Long term debt issued | $ 275,000,000 | |||||||||
Notes stated percentage | 3.51% | |||||||||
Senior Notes Ten Year | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt Instrument Term | 10 years | |||||||||
Long term debt issued | $ 297,000,000 | |||||||||
Notes stated percentage | 4.09% | |||||||||
Senior Notes Twelve Year | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt Instrument Term | 12 years | |||||||||
Long term debt issued | $ 285,000,000 | |||||||||
Notes stated percentage | 4.24% | |||||||||
Senior Notes Fifteen Year | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt Instrument Term | 15 years | |||||||||
Long term debt issued | $ 185,000,000 | |||||||||
Notes stated percentage | 4.44% | |||||||||
[1] | Debt as reported in balance sheet. |
Debt Profile (Detail)
Debt Profile (Detail) $ in Millions | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
2021 | $ 302 | |
2022 | 366 | |
2023 | 613 | |
2024 | 297 | |
2025 | 366 | |
Thereafter | 470 | |
Total long-term | 2,112 | |
Total | 2,414 | [1] |
Bonds | ||
Debt Instrument [Line Items] | ||
2021 | 275 | |
2023 | 613 | |
2024 | 297 | |
Thereafter | 470 | |
Total long-term | 1,380 | |
Total | 1,655 | |
Loans | ||
Debt Instrument [Line Items] | ||
2022 | 366 | |
2025 | 366 | |
Total long-term | 732 | |
Total | 732 | |
Other Short-term Debt | ||
Debt Instrument [Line Items] | ||
2021 | 27 | |
Total | $ 27 | |
[1] | The difference between reported total debt and total principal amount is mainly related to capitalized debt issuance costs. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2014 | Dec. 31, 2000 | |
Equity [Abstract] | ||||
Number of shares outstanding | 87,353,432 | |||
Maximum number of shares that may yet be purchased | 2,986,288 | |||
Stock repurchase program, number of shares authorized to be repurchased | 47,500,000 | 10,000,000 | ||
Shares repurchased | 0 | 0 |
Schedule of Dividends Paid (Det
Schedule of Dividends Paid (Detail) - $ / shares | Feb. 20, 2020 | Mar. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Equity [Abstract] | |||||||||||
Cash dividend paid per share | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 2.48 | $ 2.46 | |||
Cash dividend declared per share | $ 0.62 | $ 2.48 | [1] | $ 2.48 | [1] | ||||||
[1] | On February 20, 2020, the Company declared a dividend of $0.62 per share for the second quarter of 2020. On April 2, 2020, the Company canceled its declared dividend for the second quarter of 2020. |
Schedule of Dividends Paid (Par
Schedule of Dividends Paid (Parenthetical) (Detail) - $ / shares | Feb. 20, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Equity [Abstract] | |||||
Cash dividend declared per share | $ 0.62 | $ 2.48 | [1] | $ 2.48 | [1] |
[1] | On February 20, 2020, the Company declared a dividend of $0.62 per share for the second quarter of 2020. On April 2, 2020, the Company canceled its declared dividend for the second quarter of 2020. |
Other Comprehensive Loss (Detai
Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Equity [Abstract] | ||||
Cumulative translation adjustments | [1] | $ (268.8) | $ (364.9) | $ (381.2) |
Net pension liability | [1] | (78.1) | (84) | (55) |
Distribution to Veoneer | [1] | 13 | ||
Total (ending balance) | [1] | (346.9) | (448.9) | (423.2) |
Deferred taxes on the pension liability | [1] | $ 22.8 | $ 24.6 | $ 15.4 |
[1] | The components of Other Comprehensive Loss are net of any related income tax effects. |
Schedule of Payments for Intere
Schedule of Payments for Interest and Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest | $ 73 | $ 72 | $ 66 |
Income taxes | $ 104 | $ 192 | $ 214 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - USD ($) | Jun. 29, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period over which cost is expected to be recognized | 1 year 6 months | ||||
Unrecognized compensation costs associated with SOs | $ 0 | ||||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value | $ 22,600,000 | ||||
Restricted Stock Units (RSUs) | Chairman | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of additional awards granted | 50.00% | ||||
Restricted Stock Units (RSUs) | Non-employee Directors | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value | $ 1,500,000 | ||||
Percentage of awards granted | 54.00% | ||||
Number of common shares that have been issued for awards | 25,301 | ||||
Restricted Stock Units (RSUs) | LTI Program | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value | $ 6,600,000 | ||||
Performance Shares | LTI Program | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value | $ 5,700,000 | ||||
Stock Incentive Plan | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum common shares that may be issued for awards | 9,585,055 | ||||
Number of common shares that have been issued for awards | 6,674,658 | ||||
Stock Incentive Plan | Non-employee Directors | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common shares that have been issued for awards | 77,925 | ||||
Stock Options | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation, grant expiration term | 10 years | ||||
Employment requisite period following grant date | 1 year | ||||
Closing price per share | $ 92.10 | ||||
Aggregate intrinsic value for stock options outstanding | $ 2,200,000 | ||||
Aggregate intrinsic value for stock options exercisable | 2,200,000 | ||||
Restricted Stock Units And Performance Shares | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock compensation cost | 11,700,000 | $ 8,400,000 | $ 9,100,000 | ||
Total compensation cost related to non-vested awards | $ 16,000,000 | ||||
Spin-off | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of stock description | The conversion that occurred on the Distribution Date was based on the following: • SOs - A number of SOs comprising 50% of the value of the outstanding SOs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of SOs comprising the remaining 50% percent of the pre-spin-off value were replaced with options to acquire shares of Veoneer common stock. • RSUs - A number of RSUs comprising 50% of the value of the outstanding RSUs calculated immediately prior to the spin-off continued to be applicable to Autoliv common stock. A number of RSUs comprising the remaining 50% of the pre-spin-off value were replaced with RSUs with underlying Veoneer common stock. • PSs - Outstanding PSs pre-spin-off were converted to time-based RSUs and were divided between Autoliv and Veoneer common stock in the same manner as other outstanding RSUs (as described above) on the Distribution Date. The number of outstanding PSs pre-spin-off to be converted was determined based on pro-ration of the performance period such as: 1) The level of actual achievement of performance goals for each outstanding PS for the period between the first day of the performance period and December 31, 2017 (the “Performance Measurement Date”), referred to as “Level of Performance-to-Date”; and 2) The greater of the Level of Performance-to-Date and the target performance level for the period between the Performance Measurement Date and the last day of the performance period. In each case above, the conversion was intended to generally preserve the intrinsic value of the original award determined as of the Distribution Date. The number of converted RSUs and SOs for Autoliv and Veoneer was based on the average of Autoliv closing stock prices for the last 5 trading days prior to the spin-off and the average of closing stock prices of Autoliv and Veoneer, respectively, for the first 5 trading days after the spin-off. Accordingly, 50% of the outstanding awards as of the Distribution Date, and the related exercise price, were converted to Adjusted Autoliv Awards using a conversion factor of 1.41. | ||||
Percentage of outstanding awards as of distribution date | 50.00% | ||||
Spin-off | Veoneer, Inc. | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion ratio | 1.41 | ||||
Spin-off | Common stock | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of stock option continue to be applicable to the entity | 50.00% | ||||
Percentage of RSUs prior to spinoff continue to applicable to the entity | 50.00% | ||||
Spin-off | Common stock | Veoneer, Inc. | |||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of stock option and replaced with stock option of the spun entity | 50.00% | ||||
Percentage of RSUs prior to spinoff and replaced with RSUs of the spun entity | 50.00% |
Schedule of Number Restricted S
Schedule of Number Restricted Stock Units and Performance Shares (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Restricted Stock Units (RSUs) | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value at grant date | [1] | $ 69.58 | $ 76.85 | $ 131.51 | ||
Outstanding at beginning of year | 255,195 | [2] | 262,074 | [2] | 188,410 | |
Granted | 115,500 | 109,653 | 131,246 | |||
Shares issued | (105,750) | (86,086) | (84,425) | |||
Cancelled/Forfeited/Expired | (20,044) | (30,446) | (6,485) | |||
Spin conversion | [3] | 33,328 | ||||
Outstanding at end of year | [2] | 244,901 | 255,195 | 262,074 | ||
Performance Shares | ||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value at grant date | [1] | $ 69.86 | $ 77 | $ 105.87 | ||
Outstanding at beginning of year | 76,321 | 139,891 | ||||
Change in performance conditions | 23,998 | 12,530 | ||||
Granted | [4] | 75,940 | 66,542 | 588 | ||
Cancelled/Forfeited/Expired | (18,131) | (2,751) | (3,076) | |||
Spin conversion | [5] | (137,403) | ||||
Outstanding at end of year | 158,128 | 76,321 | ||||
[1] | Weighted average fair value at grant date pre spin-off in 2018. | |||||
[2] | Outstanding at the end of 2018 reflects the RSUs held by employees of Autoliv and Veoneer, in accordance with the conversion factor described above. The corresponding weighted average grant date fair value after applying the conversion factor is $100.74 as of December 31, 2018. | |||||
[3] | Reflects the impact of the cancellation of PS awards outstanding as of the Distribution Date, and the conversion to RSUs in accordance with the conversion factor described above. | |||||
[4] | 2018 grants reflect awards issued pre-spin-off as a result of dividend equivalent rights. | |||||
[5] | Reflects the replacement of awards due to the spin-off. Outstanding PS awards were converted to RSU awards in accordance with the conversion factor described above. |
Schedule of Number Restricted_2
Schedule of Number Restricted Stock Units and Performance Shares (Parenthetical) (Detail) | Dec. 31, 2018ConversionFactor |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted average grant date fair value after applying the conversion factor | 100.74 |
Schedule of Number of Stock Opt
Schedule of Number of Stock Options (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Number of options, Outstanding beginning balance | 115,875 | [1] | 142,074 | 299,949 | ||
Exercised | (14,238) | (20,928) | (92,485) | |||
Cancelled/Forfeited/Expired | (11,462) | (65,390) | ||||
Spin conversion | [2] | (5,271) | ||||
Number of options, Outstanding ending balance | 90,175 | 115,875 | [1] | 142,074 | ||
Weighted average exercise price, Outstanding beginning balance | $ 66.70 | [1] | $ 63.43 | $ 89.20 | ||
Exercised | 55.55 | 42.11 | 86.59 | |||
Cancelled/Forfeited/Expired | 69.25 | 88.75 | ||||
Spin conversion | [2] | 80.40 | ||||
Weighted average exercise price, Outstanding ending balance | $ 68.13 | $ 66.70 | [1] | $ 63.43 | ||
[1] | ||||||
[2] |
Schedule of Options Exercisable
Schedule of Options Exercisable (Detail) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options exercisable, shares | 90,175 | 115,875 | 142,074 |
Weighted average exercise price | $ 68.13 | $ 66.70 | $ 63.43 |
Summary of Stock Options Outsta
Summary of Stock Options Outstanding and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number outstanding | shares | 90,175 |
Remaining contract life in years, Outstanding options | 3 years 1 month 20 days |
Number outstanding, Weighted average exercise price | $ 68.13 |
$47.52 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 47.52 |
Number outstanding | shares | 6,607 |
Remaining contract life in years, Outstanding options | 1 year 1 month 20 days |
Number outstanding, Weighted average exercise price | $ 47.52 |
$49.07 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 49.07 |
Number outstanding | shares | 13,612 |
Remaining contract life in years, Outstanding options | 2 years 1 month 20 days |
Number outstanding, Weighted average exercise price | $ 49.07 |
$51.74 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 51.74 |
Number outstanding | shares | 3,799 |
Remaining contract life in years, Outstanding options | 1 month 20 days |
Number outstanding, Weighted average exercise price | $ 51.74 |
$67.29 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 67.29 |
Number outstanding | shares | 26,965 |
Remaining contract life in years, Outstanding options | 3 years 1 month 20 days |
Number outstanding, Weighted average exercise price | $ 67.29 |
$80.40 | |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under stock option plans, exercise price range | $ 80.40 |
Number outstanding | shares | 39,192 |
Remaining contract life in years, Outstanding options | 4 years 1 month 17 days |
Number outstanding, Weighted average exercise price | $ 80.40 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) € in Millions, Vehicle in Millions, $ in Millions | Mar. 05, 2019USD ($) | Mar. 05, 2019EUR (€) | Nov. 22, 2017USD ($) | Nov. 22, 2017EUR (€) | Jun. 29, 2016Vehicle | Jun. 09, 2011Facility | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, accrual | $ 210 | |||||||||
Product liability accrual | $ 62.2 | $ 341 | $ 72.1 | $ 95.6 | ||||||
Insurance receivable related to recall | 343 | |||||||||
Damages from Product Defects | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of vehicles recalled | Vehicle | 1.4 | |||||||||
Litigation with European Commission | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of facilities visited | Facility | 2 | |||||||||
Loss contingency, accrual | $ 203 | € 179 | $ 9.7 | € 8.1 | ||||||
Toyota Recall | Damages from Product Defects | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Product liability accrual | 25 | |||||||||
Unannounced Recall | Damages from Product Defects | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Product liability accrual | $ 26 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Retirement Plans [Line Items] | |||||
Contributions to defined contribution plans | $ 14.7 | $ 15.7 | $ 19.2 | ||
Minimum percentage for which multiemployer plans is funded | 100.00% | ||||
Post retirement plan description | In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. | ||||
Years of service to qualify for a benefit from the plan in the future. | 15 years | ||||
Weighted average discount rate used to determine U.S. postretirement benefit obligation | 2.60% | 3.50% | |||
Average discount rate used to determine U.S. postretirement benefit cost | 3.50% | 4.45% | 3.75% | ||
Non-U.S. Pension Plans | Minimum | |||||
Retirement Plans [Line Items] | |||||
Estimated remaining service lives of the plan participants, years | 4 years | ||||
Non-U.S. Pension Plans | Maximum | |||||
Retirement Plans [Line Items] | |||||
Estimated remaining service lives of the plan participants, years | 31 years | ||||
U.S. Pension Plans | |||||
Retirement Plans [Line Items] | |||||
Estimated remaining service lives of the plan participants, years | 9 years | ||||
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |||||
Retirement Plans [Line Items] | |||||
Accumulated benefit obligation | $ 236.9 | $ 194.5 | |||
Company contributions | $ 9.7 | $ 9.5 | |||
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | Minimum | |||||
Retirement Plans [Line Items] | |||||
Expected long-term rate of return on assets | [1] | 1.50% | 2.25% | 2.25% | |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | Maximum | |||||
Retirement Plans [Line Items] | |||||
Expected long-term rate of return on assets | [1] | 2.25% | 2.50% | 2.50% | |
Pension Plans, Defined Benefit | SWEDEN | |||||
Retirement Plans [Line Items] | |||||
Contributions to multi-employer plans | $ 4 | $ 3.9 | $ 6.1 | ||
Pension Plans, Defined Benefit | U.K. Pension Plans | |||||
Retirement Plans [Line Items] | |||||
Target allocation | 100.00% | ||||
Company contributions | $ 1.9 | 1.2 | |||
Pension Plans, Defined Benefit | U.K. Pension Plans | Debt Instruments | |||||
Retirement Plans [Line Items] | |||||
Percentage of total plan assets | 80.00% | ||||
Pension Plans, Defined Benefit | U.K. Pension Plans | Forecast | |||||
Retirement Plans [Line Items] | |||||
Expected contribution by the company over the next fiscal year | $ 2 | ||||
Pension Plans, Defined Benefit | U.S. Pension Plans | |||||
Retirement Plans [Line Items] | |||||
Accumulated benefit obligation | $ 419.1 | $ 384.4 | |||
Targeted level of equity exposure | 40.00% | ||||
Expected long-term rate of return on assets | 5.05% | 5.05% | 7.08% | ||
Target allocation | 100.00% | ||||
Company contributions | $ 16.5 | $ 7.3 | |||
Pension Plans, Defined Benefit | U.S. Pension Plans | Forecast | |||||
Retirement Plans [Line Items] | |||||
Expected long-term rate of return on assets | 5.05% | ||||
Expected contribution by the company over the next fiscal year | $ 12.6 | ||||
[1] | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent around 83% of the total Non-U.S. projected benefit obligation. |
Changes in Benefit Obligations
Changes in Benefit Obligations and Plan Assets (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | $ 400.1 | $ 332.1 | |
Service cost | 7.5 | 6.9 | $ 8.7 |
Interest cost | 12.2 | 14.2 | 12.8 |
Change in discount rate | 46.4 | 67.8 | |
Experience | (5) | 3 | |
Other assumption changes | 3.2 | (0.4) | |
Benefits paid | (3.8) | (23.5) | |
Plan settlements | (34.4) | ||
Benefit obligation at end of year | 426.2 | 400.1 | 332.1 |
Fair value of plan assets at beginning of year | 323.8 | 273 | |
Actual return on plan assets | 52.5 | 67 | |
Company contributions | 16.5 | 7.3 | |
Fair value of plan assets at end of year | 354.6 | 323.8 | 273 |
Funded status recognized in the balance sheet | (71.6) | (76.3) | |
Non-U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | 252.6 | 216.9 | |
Service cost | 12.2 | 10.7 | 10.8 |
Interest cost | 5.8 | 6.4 | 5.7 |
Change in discount rate | 12.9 | 27.7 | |
Experience | 0.1 | (1.2) | |
Other assumption changes | (11.2) | (1) | |
Benefits paid | (9) | (8.4) | |
Plan settlements | (0.4) | (1.2) | |
Special termination benefits | 0 | 0.5 | 0.5 |
Other | 1.5 | 1.6 | |
Translation difference | 14.9 | 0.6 | |
Benefit obligation at end of year | 279.4 | 252.6 | 216.9 |
Fair value of plan assets at beginning of year | 88.7 | 77.8 | |
Actual return on plan assets | 8.8 | 8.9 | |
Company contributions | 9.7 | 9.5 | |
Translation difference | 5 | 2.1 | |
Fair value of plan assets at end of year | 102.8 | 88.7 | $ 77.8 |
Funded status recognized in the balance sheet | $ (176.6) | $ (163.9) |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans, Defined Benefit | U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 7.5 | $ 6.9 | $ 8.7 |
Interest cost | 12.2 | 14.2 | 12.8 |
Expected return on plan assets | (16.3) | (13.5) | (20.4) |
Amortization of prior service credit | 0 | 0 | 0.1 |
Amortization of actuarial loss | 2.8 | 1.9 | 2.2 |
Settlement loss | 7.2 | ||
Net periodic benefit (credit) cost | 13.4 | 9.5 | 3.4 |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 12.2 | 10.7 | 10.8 |
Interest cost | 5.8 | 6.4 | 5.7 |
Expected return on plan assets | (1.7) | (1.9) | (2) |
Amortization of prior service credit | 0.4 | 0.3 | 0.3 |
Amortization of actuarial loss | 2.3 | 0.9 | 1.4 |
Settlement loss | 0.1 | 0.6 | 0.2 |
Special termination benefits | 0 | 0.5 | 0.5 |
Net periodic benefit (credit) cost | 19.1 | 17.5 | 16.9 |
Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0.2 | 0.2 | 0.3 |
Interest cost | 0.6 | 0.6 | 0.6 |
Amortization of prior service credit | (2.1) | (2.2) | (2.2) |
Amortization of actuarial loss | 0 | (0.3) | (0.3) |
Net periodic benefit (credit) cost | $ (1.3) | $ (1.7) | $ (1.6) |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Income Before Tax (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans, Defined Benefit | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 61.5 | $ 63.1 | |
Prior service cost | 0 | 0.1 | |
Total accumulated other comprehensive loss (income) recognized in the balance sheet | 61.5 | 63.2 | $ 48.1 |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 41.9 | 47.6 | |
Prior service cost | 3.5 | 3.7 | |
Total accumulated other comprehensive loss (income) recognized in the balance sheet | 45.4 | 51.3 | $ 33.9 |
Postretirement Benefits Other Than Pensions | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (0.1) | 2 | |
Prior service cost | 4 | 6.1 | |
Total accumulated other comprehensive loss (income) recognized in the balance sheet | $ 3.9 | $ 8.1 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income Before Tax (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | $ 63.2 | $ 48.1 |
Net actuarial (gain) loss | 8.3 | 16.9 |
Amortization of prior service credit (cost) | 0 | 0 |
Amortization of actuarial loss | (10) | (1.8) |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | 61.5 | 63.2 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | 51.3 | 33.9 |
Net actuarial (gain) loss | (5.2) | 19.1 |
Amortization of prior service credit (cost) | (0.4) | (0.3) |
Amortization of actuarial loss | (2.3) | (1.5) |
Translation difference | 2 | 0.1 |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | $ 45.4 | $ 51.3 |
Pension Plans for which ABO exc
Pension Plans for which ABO exceeds Fair Value of Plan Assets (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | $ 426.2 | $ 400.1 |
Accumulated Benefit Obligation (ABO) | 419.1 | 384.3 |
Fair value of plan assets | 354.6 | 323.8 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | 179.2 | 169.3 |
Accumulated Benefit Obligation (ABO) | 142.7 | 127.2 |
Fair value of plan assets | $ 4 | $ 3.8 |
Assumptions to Determine Benefi
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Detail) - Pension Plans, Defined Benefit | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | 2.35% | 3.25% | ||
Benefit Obligation rate of increases in compensation level | 2.65% | 2.65% | ||
Net periodic benefit cost discount rate | 3.25% | 4.35% | 3.55% | |
Net periodic benefit cost rate of increases in compensation level | 2.65% | 2.65% | 2.65% | |
Expected long-term rate of return on assets | 5.05% | 5.05% | 7.08% | |
Non-U.S. Pension Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | [1] | 0.25% | 0.25% | |
Benefit Obligation rate of increases in compensation level | [1] | 1.80% | 2.00% | |
Net periodic benefit cost discount rate | [1] | 0.25% | 0.50% | 0.25% |
Net periodic benefit cost rate of increases in compensation level | [1] | 2.00% | 2.00% | 2.00% |
Expected long-term rate of return on assets | [1] | 1.50% | 2.25% | 2.25% |
Non-U.S. Pension Plans | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation discount rate | [1] | 2.70% | 2.70% | |
Benefit Obligation rate of increases in compensation level | [1] | 4.00% | 5.00% | |
Net periodic benefit cost discount rate | [1] | 2.70% | 3.25% | 3.25% |
Net periodic benefit cost rate of increases in compensation level | [1] | 5.00% | 5.00% | 5.00% |
Expected long-term rate of return on assets | [1] | 2.25% | 2.50% | 2.50% |
[1] | The Non-U.S. weighted average plan ranges in the tables above have been prepared using significant plans only, which in total represent around 83% of the total Non-U.S. projected benefit obligation. |
Assumptions to Determine Bene_2
Assumptions to Determine Benefit Obligation and Net Periodic Benefit Cost (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Projected benefit obligation | 83.00% |
Fair Value of Total Plan Assets
Fair Value of Total Plan Assets (Detail) - Pension Plans, Defined Benefit | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 100.00% | |
Fair Value allocation | 100.00% | 100.00% |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 100.00% | 100.00% |
Other Assets | U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 1.00% | 0.00% |
Other Assets | Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 23.00% | 21.00% |
Equity Securities | U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 40.00% | |
Fair Value allocation | 42.00% | 40.00% |
Equity Securities | Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 0.00% | 0.00% |
Debt Securities | U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 60.00% | |
Fair Value allocation | 57.00% | 60.00% |
Debt Securities | Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value allocation | 77.00% | 79.00% |
Summary of Fair Value of Compan
Summary of Fair Value of Company's Plan Assets (Detail) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 106.7 | $ 91.3 |
Total | 457.4 | 412.5 |
Non-U.S. Bonds | Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 79.6 | 70.4 |
Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17.5 | 14.7 |
Common Collective Trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value | 350.7 | 321.2 |
Other Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 9.6 | $ 6.2 |
Estimated Future Benefit Expect
Estimated Future Benefit Expected Payments (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Pension Plans, Defined Benefit | U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 21 |
2022 | 22 |
2023 | 23 |
2024 | 29 |
2025 | 26 |
Years 2026-2030 | 131 |
Pension Plans, Defined Benefit | Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 9 |
2022 | 11 |
2023 | 11 |
2024 | 12 |
2025 | 13 |
Years 2026-2030 | 76 |
Postretirement Benefits Other Than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 0.5 |
2022 | 0.6 |
2023 | 0.6 |
2024 | 0.7 |
2025 | 0.7 |
Years 2026-2030 | $ 3.9 |
Schedule of Changes in Benefit
Schedule of Changes in Benefit Obligation (Detail) - Postretirement Benefits Other Than Pensions - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | $ 18.4 | $ 15.5 | |
Service cost | 0.2 | 0.2 | $ 0.3 |
Interest cost | 0.6 | 0.6 | 0.6 |
Actuarial loss (gain) | 2.1 | 2.2 | |
Benefits paid | (0.4) | (0.3) | |
Other | 0.3 | 0.2 | |
Benefit obligation at end of year | $ 21.2 | $ 18.4 | $ 15.5 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Veoneer, Inc. | ||
Related Party Transaction [Line Items] | ||
Purchases from related party | $ 70 | $ 73 |
Summary of Amounts Due to and D
Summary of Amounts Due to and Due from Related Party (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Related party receivables | $ 2 | $ 2.8 | |
Related party payables | [1] | 27.2 | 9.7 |
Related party accrued expenses | [1] | $ 10.3 | $ 7.7 |
[1] | Included in Related party liabilities in the Consolidated Balance Sheet . |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Long-lived assets, Total | $ 3,888 | $ 3,769 | |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
External sales | 1,647 | 2,090 | $ 1,943 |
Long-lived assets, Total | 1,653 | 1,633 | |
Long-lived intangible assets from acquisition goodwill | 1,235 | 1,242 | |
Exports from U.S. to other Regions | |||
Segment Reporting Information [Line Items] | |||
External sales | $ 348 | $ 463 | $ 384 |
Customer Concentration Risk | Sales | Renault | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 13.00% | 16.00% | 15.00% |
Customer Concentration Risk | Sales | VW | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 11.00% | 10.00% | 10.00% |
Customer Concentration Risk | Sales | Stellantis | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 11.00% | ||
Customer Concentration Risk | Sales | Honda | |||
Segment Reporting Information [Line Items] | |||
Percentage of sales to individuals | 10.00% | 10.00% |
Net Sales by Geographical Area
Net Sales by Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,516.8 | $ 2,037.2 | $ 1,047.6 | $ 1,845.8 | $ 2,191.2 | $ 2,027.7 | $ 2,154.7 | $ 2,174 | $ 7,447.4 | $ 8,547.6 | $ 8,678.2 |
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,043 | 3,176.6 | 3,194.9 | ||||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,540.8 | 1,525.3 | 1,522.2 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 732.9 | 810.3 | 827.9 | ||||||||
Rest of Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 769.3 | 841 | 844.8 | ||||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,337.1 | 2,907.2 | 2,735.1 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,067.3 | $ 2,463.8 | $ 2,748.2 |
Net Sales by Product (Detail)
Net Sales by Product (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 2,516.8 | $ 2,037.2 | $ 1,047.6 | $ 1,845.8 | $ 2,191.2 | $ 2,027.7 | $ 2,154.7 | $ 2,174 | $ 7,447.4 | $ 8,547.6 | $ 8,678.2 | |
Airbag Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 4,824.2 | 5,676.3 | 5,698.6 | ||||||||
Seatbelt Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | $ 2,623.2 | $ 2,871.3 | $ 2,979.6 | ||||||||
[1] | Including Corporate and other sales |
Long-lived Assets by Geographic
Long-lived Assets by Geographical Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $ 3,888 | $ 3,769 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 984 | 948 |
China | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 508 | 495 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 184 | 170 |
Rest of Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 292 | 283 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | 1,874 | 1,862 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, Total | $ 1,030 | $ 959 |
Schedule of Computation of Basi
Schedule of Computation of Basic and Diluted EPS under Two-class Method (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Basic and diluted: | ||||||||||||
Net income from continuing operations | $ 186.9 | $ 461.5 | $ 375.9 | |||||||||
Net loss from discontinued operations | (185.5) | |||||||||||
Net income attributable to controlling interest | $ 188.5 | $ 98.3 | $ (174.7) | $ 74.8 | $ 155.6 | $ 85.4 | $ 109.1 | $ 111.4 | 186.9 | 461.5 | 190.4 | |
Participating share awards with dividend equivalent rights | 0 | 0 | 0 | |||||||||
Net income available to common shareholders | 186.9 | 461.5 | 190.4 | |||||||||
Earnings allocated to participating share awards | [1] | 0 | 0 | 0 | ||||||||
Net income attributable to common shareholders | $ 186.9 | $ 461.5 | $ 190.4 | |||||||||
Denominator: | ||||||||||||
Basic: Weighted average common stock | [1] | 87.3 | 87.2 | 87.1 | ||||||||
Add: Weighted average stock options/share awards | [1] | 0.2 | 0.2 | 0.2 | ||||||||
Diluted: | [1] | 87.5 | 87.4 | 87.3 | ||||||||
Basic EPS: | ||||||||||||
Continuing operations | [2] | $ 2.14 | $ 5.29 | $ 4.32 | ||||||||
Discontinued operations | [2] | (2.13) | ||||||||||
Basic earnings per share | $ 2.16 | $ 1.13 | $ (2) | $ 0.86 | $ 1.78 | $ 0.98 | $ 1.25 | $ 1.28 | 2.14 | 5.29 | 2.19 | |
Diluted EPS: | ||||||||||||
Continuing operations | [2] | 2.14 | 5.29 | 4.31 | ||||||||
Discontinued operations | [2] | (2.13) | ||||||||||
Diluted earnings per share | $ 2.15 | $ 1.12 | $ (2) | $ 0.86 | $ 1.78 | $ 0.98 | $ 1.25 | $ 1.27 | $ 2.14 | $ 5.29 | $ 2.18 | |
[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 2 2 in this Annual Report). |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net sales | $ 2,516.8 | $ 2,037.2 | $ 1,047.6 | $ 1,845.8 | $ 2,191.2 | $ 2,027.7 | $ 2,154.7 | $ 2,174 | $ 7,447.4 | $ 8,547.6 | $ 8,678.2 | |||
Gross profit | 501.8 | 399.7 | 14.4 | 331 | 426.8 | 379.1 | 399.7 | 378.8 | 1,246.9 | 1,584.4 | 1,711.3 | |||
Income (loss) before income taxes | 277.9 | 148.5 | (246.6) | 111.3 | 209.7 | 134.4 | 150.8 | 153.6 | 291.2 | 648.4 | 612.4 | |||
Net income | 188.9 | 98.8 | (174.3) | 74.9 | 155.9 | 86 | 109.4 | 111.5 | 188.3 | [1] | 462.8 | [1] | 183.7 | [1] |
Net income (loss) attributable to controlling interest | $ 188.5 | $ 98.3 | $ (174.7) | $ 74.8 | $ 155.6 | $ 85.4 | $ 109.1 | $ 111.4 | $ 186.9 | $ 461.5 | $ 190.4 | |||
Earnings per share - basic | $ 2.16 | $ 1.13 | $ (2) | $ 0.86 | $ 1.78 | $ 0.98 | $ 1.25 | $ 1.28 | $ 2.14 | $ 5.29 | $ 2.19 | |||
Earnings per share - diluted | $ 2.15 | $ 1.12 | $ (2) | 0.86 | 1.78 | 0.98 | 1.25 | 1.27 | 2.14 | 5.29 | 2.18 | |||
Cash dividend per share - paid | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 2.48 | $ 2.46 | ||||||
[1] | See Note 15 for further details – includes tax effects where applicable. |
Quarterly Financial Data - Addi
Quarterly Financial Data - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2020 | |
COVID-19 | |
Quarterly Financial Information Disclosure [Line Items] | |
Percentage of decline in production of global light vehicle | 45.00% |