Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 21, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | VISTEON CORP | |
Entity Central Index Key | 1,111,335 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 34,012,831 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Sales | $ 773 | $ 812 | $ 1,575 | $ 1,628 |
Cost of sales | 664 | 713 | 1,345 | 1,417 |
Gross margin | 109 | 99 | 230 | 211 |
Selling, general and administrative expenses | 54 | 65 | 110 | 123 |
Restructuring charges, net of reversals | 7 | 12 | 17 | 15 |
Interest expense | 4 | 7 | 8 | 12 |
Interest income | 1 | 1 | 3 | 1 |
Equity in net income of (loss) non-consolidated affiliates | 3 | 12 | 3 | 11 |
Other expense, net | 0 | (4) | 4 | 8 |
Income (loss) before income taxes | 48 | 89 | 97 | 122 |
Provision for income taxes | 9 | 24 | 22 | 33 |
Net income (loss) from continuing operations | 39 | 65 | 75 | 89 |
(Loss) income from discontinued operations, net of tax | (9) | 2,159 | (22) | 2,205 |
Net income (loss) | 30 | 2,224 | 53 | 2,294 |
Net income attributable to non-controlling interests | 4 | 16 | 8 | 36 |
Net income (loss) attributable to Visteon Corporation | $ 26 | $ 2,208 | $ 45 | $ 2,258 |
Basic earnings (loss) per share: | ||||
Continuing operations | $ 1.03 | $ 1.34 | $ 1.85 | $ 1.76 |
Discontinued operations | (0.26) | 49.54 | (0.61) | 49.79 |
Basic earnings (loss) attributable to Visteon Corporation | 0.77 | 50.88 | 1.24 | 51.55 |
Diluted earnings (loss) per share | ||||
Continuing operations | 1.02 | 1.31 | 1.83 | 1.71 |
Discontinued operations | (0.26) | 48.42 | (0.60) | 48.58 |
Diluted earnings (loss) attributable to Visteon Corporation | $ 0.76 | $ 49.73 | $ 1.23 | $ 50.29 |
Comprehensive income: | ||||
Comprehensive income (loss) | $ 29 | $ 2,303 | $ 71 | $ 2,323 |
Comprehensive income (loss) attributable to Visteon Corporation | 27 | 2,288 | 65 | 2,296 |
Gain (Loss) on Extinguishment of Debt | 0 | (5) | 0 | (5) |
Gain (Loss) on Disposition of Business | $ 0 | $ 62 | $ 0 | $ 62 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and equivalents | $ 846 | $ 2,728 |
Short-term Investments | 0 | 47 |
Restricted cash | 6 | 8 |
Accounts receivable, net | 483 | 502 |
Inventories, net | 187 | 187 |
Other current assets | 189 | 581 |
Total current assets | 1,711 | 4,053 |
Property and equipment, net | 342 | 351 |
Intangible assets, net | 123 | 133 |
Investments in non-consolidated affiliates | 58 | 56 |
Other non-current assets | 110 | 88 |
Total assets | 2,344 | 4,681 |
LIABILITIES AND EQUITY | ||
Distribution Payable | 15 | 1,751 |
Short-term debt, including current portion of long-term debt | 25 | 37 |
Accounts payable | 455 | 482 |
Accrued employee liabilities | 96 | 132 |
Other current liabilities | 279 | 370 |
Total current liabilities | 870 | 2,772 |
Long-term debt | 347 | 346 |
Employee benefits | 259 | 268 |
Deferred tax liabilities | 23 | 21 |
Other non-current liabilities | 81 | 75 |
Stockholders' equity: | ||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding at March 31, 2016 and December 31, 2015) | 0 | 0 |
Common stock (par value $0.01, 250 million shares authorized, 55 million and 55 million shares issued, and 34 million and 40 million shares outstanding at March 31, 2016 and December 31, 2015, respectively) | 1 | 1 |
Additional paid-in capital | 1,245 | 1,345 |
Retained earnings | 1,239 | 1,194 |
Accumulated other comprehensive loss | (170) | (190) |
Treasury stock | (1,699) | (1,293) |
Total Visteon Corporation stockholders' equity | 616 | 1,057 |
Non-controlling interests | 148 | 142 |
Total equity | 764 | 1,199 |
Total liabilities and equity | $ 2,344 | $ 4,681 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 250 | 250 |
Common Stock, Shares, Issued | 55 | 55 |
Common Stock, Shares, Outstanding | 34 | 40 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50 | 50 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net income (loss) | $ 53 | $ 2,294 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation and amortization | 41 | 127 |
Losses on divestitures and impairments | 2 | 16 |
Gain (Loss) on Disposition of Business | 0 | 62 |
Other Noncash Income (Expense) | (1) | (3) |
Equity in net income of non-consolidated affiliates, net of dividends remitted | (3) | (2) |
Gain (Loss) on Extinguishment of Debt | 0 | (5) |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (2) | 2,332 |
Non-cash stock-based compensation | 4 | 6 |
Changes in assets and liabilities: | ||
Accounts receivable | 27 | (18) |
Inventories | 5 | (32) |
Accounts payable | (17) | 32 |
Accrued income taxes | (49) | 142 |
Other assets and other liabilities | (52) | 25 |
Net cash provided from operating activities | 14 | 204 |
Investing Activities | ||
Capital expenditures | (37) | (122) |
Climate Transaction Withholding Tax Refund | 356 | 0 |
Short-term Investments | 47 | 0 |
Payments associated with business divestitures, net | 0 | (24) |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 0 | 2,664 |
Loan to non-consolidated affiliate | (12) | (10) |
Proceeds from asset sales | 4 | 91 |
Other | 0 | 5 |
Net cash provided from (used by) investing activities | 358 | 2,604 |
Financing Activities | ||
Short-term debt, net | (10) | (6) |
Principal payments on debt | (1) | (250) |
Distribution payments | (1,736) | 0 |
Payments for Repurchase of Common Stock | (500) | (500) |
Dividends paid to non-controlling interests | 0 | (31) |
Stock warrant and option exercises | 0 | 19 |
Payments Related to Tax Withholding for Share-based Compensation | (11) | 0 |
Proceeds from (Payments for) Other Financing Activities | 0 | (1) |
Net cash used by financing activities | (2,258) | (769) |
Effect of exchange rate changes on cash | 4 | (9) |
Net increase (decrease) in cash and equivalents | (1,882) | 2,030 |
Cash and equivalents at beginning of the period | 2,729 | 827 |
Cash and equivalents at end of the period | $ 847 | $ 2,857 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | NOTE 1. Description of Business Visteon Corporation (the "Company" or "Visteon") is a global automotive supplier that designs, engineers and manufactures innovative electronics products for nearly every original equipment vehicle manufacturer ("OEM") worldwide including Ford, Nissan, Renault, Mazda, BMW, General Motors and Honda. Visteon is headquartered in Van Buren Township, Michigan and has an international network of manufacturing operations, technical centers and joint venture operations, supported by approximately 11,000 employees, dedicated to the design, development, manufacture and support of its product offerings and its global customers. The Company's manufacturing and engineering footprint is principally located outside of the U.S., with a heavy concentration in low-cost geographic regions. Visteon delivers value for its customers and stockholders through its technology-focused core vehicle cockpit electronics business. The Company's cockpit electronics product portfolio includes audio systems, information displays, instrument clusters, head up displays, infotainment systems, and telematics solutions. The Company's vehicle cockpit electronics business is comprised of and reported under the Electronics segment. In addition to the Electronics segment, the Company has residual operations in South America and Europe previously associated with the former Interiors and Climate businesses, not subject to discontinued operations classification, that comprise Other. A summary of transactions impacting the Company's businesses is provided below. Exit of Climate Business On June 9, 2015, Visteon Corporation and its wholly owned subsidiary, VIHI, LLC (collectively, “Visteon”) completed the sale to Hahn & Co. Auto Holdings Co., Ltd. and Hankook Tire Co., Ltd. (together, the “Purchasers”) of all of its shares of Halla Visteon Climate Control Corporation, a Korean corporation (“HVCC”), for approximately $ 3.4 billion , or KRW 52,000 per share, after adjusting for the 2014 dividend paid by HVCC to Visteon (the “Climate Transaction”), pursuant to and in accordance with the Share Purchase Agreement, dated as of December 17, 2014, among Visteon and the Purchasers. See Note 3 "Discontinued Operations" for additional disclosures. The Company received net cash proceeds of approximately $2.7 billion and recognized a pretax gain of approximately $2.3 billion in connection with the closing of the Climate Transaction in the second quarter 2015. The results of operations for the Climate business have been classified as (loss) income from discontinued operations, net of tax in the consolidated statements of comprehensive income for the three and six month periods ended June 30, 2015 . On July 18, 2016, the Company reached an agreement to sell its South Africa climate operations, with 2015 annual sales of $9 million as reported in the Company’s Other product line. The sale is expected to close during the third quarter of 2016 for proceeds of approximately $2 million . The Company expects to record a loss of approximately $12 million primarily related to foreign currency translation amounts recorded in accumulated other comprehensive loss. Exit of Interiors Business On December 1, 2015, Visteon completed the sale and transfer of its equity ownership in Visteon Deutschland GmbH, which operated the Berlin, Germany interiors plant ("Germany Interiors Divestiture"). The Company contributed cash, of approximately $141 million , assets of $27 million , and liabilities of $198 million including pension related liabilities. The Company will make a final contribution payment of approximately $33 million by November 2016 which is included in the Company's consolidated balance sheet as "Other current liabilities" as of June 30, 2016. During 2014, the Company divested the majority of its global Interiors business (the "Interiors Divestiture"). Subsequently, Visteon completed the sale of its Interiors operations in Thailand on February 2, 2015. Remaining operations subject to the Interiors Divestiture are located in Argentina and Brazil and are expected to close during 2016. Assets and liabilities associated with these operations continue to meet the "held for sale" criteria at June 30, 2016 and are classified as "Other current assets" or "Other current liabilities" in the consolidated balance sheets. These remaining transactions are subject to various conditions, including regulatory and antitrust approvals, receipt of other third party consents and approvals and other customary closing conditions, and may be subject to further cash impacts based on purchase price adjustments at the time of closing. See Note 3 "Discontinued Operations" for additional disclosures. The Company expects to record losses in connection with the Argentina and Brazil portions of the Interiors Divestiture in future periods upon closing, which are estimated to be approximately $20 million . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2. Summary of Significant Accounting Policies The unaudited consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These interim consolidated financial statements include all adjustments (consisting of normal recurring adjustments, except as otherwise disclosed) that management believes are necessary for a fair presentation of the results of operations, financial position and cash flows of the Company for the interim periods presented. Interim results are not necessarily indicative of full-year results. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and all subsidiaries that are more than 50% owned and over which the Company exercises control. Investments in affiliates of greater than 20% and for which the Company exercises significant influence but does not exercise control are accounted for using the equity method. All other investments in non-consolidated affiliates are accounted for using the cost method. The Company determines whether joint ventures in which it has invested is a Variable Interest Entity (“VIE”) at the start of each new venture and when a reconsideration event has occurred. An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determined that Yanfeng Visteon Electronics (China) Investment Co., Ltd. ("YFVIC"), is a VIE. The Company holds a variable interest in YFVIC primarily related to its ownership interests and subordinated financial support. The Company and Yanfeng Automotive Trim Systems Co., Ltd. (an unrelated party) each own 50% of YFVIC. YFVIC is not consolidated since the Company is not the primary beneficiary. At June 30, 2016, the Company’s investment in YFVIC is $24 million . In addition, at June 30, 2016, the Company has receivables due from YFVIC, including trade receivables and other advances of $18 million , subordinated loans receivable of $22 million and payables due to YFVIC of $13 million . At December 31, 2015, the Company’s investment in YFVIC was $23 million and it had receivables due from YFVIC, including trade receivables and other advances of $36 million , a subordinated loan receivable of $10 million and payables due to YFVIC of $17 million . At June 30, 2016, the Company’s maximum exposure to loss in YFVIC is $90 million , which includes assets described above and a $26 million loan guarantee. During the three and six months ended June 30, 2016, Visteon loaned YFVIC and affiliates approximately $4 million and $12 million , respectively, expected to be repaid within five years. On July 22, 2016, the Company sold a cost method investment to a third party for proceeds of approximately $11 million . The Company will record a gain on sale of approximately $5 million during the third quarter of 2016. Use of Estimates: The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect amounts reported herein. Management believes that such estimates, judgments and assumptions are reasonable and appropriate. However, due to the inherent uncertainty involved, actual results may differ from those provided in the Company's consolidated financial statements. Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation. Other (Income) Expense, Net: Other (income) expense, net includes transformation initiatives, transaction hedging and exchange, and integration costs. Other (income) expense, net consists of the following: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Transformation initiatives $ 1 $ 13 $ 3 $ 18 Transaction hedging and exchange (gains) losses — (22 ) 1 (19 ) Integration costs — 5 1 9 Recoverable taxes (1 ) — (1 ) — $ — $ (4 ) $ 4 $ 8 Transformation initiatives include information technology separation costs and financial and advisory services incurred in connection with execution of the Company's comprehensive value creation plan. Transaction hedging and exchange losses of $1 million for the six months ended June 30, 2016 , relate to the Climate Transaction Korean withholding tax refund exchange impacts. Transaction hedging and exchange gains for the three and six months ended June, 30 2015 of $22 million and $19 million , respectively, relate to Climate Transaction proceeds hedging and exchange impacts. Integration costs include costs associated with re-branding, facility modification, information technology readiness and related professional services necessary to integrate businesses associated with the Electronics Acquisition. Cash and Equivalents: The Company considers all highly liquid investments purchased with a maturity of three months or less, including short-term time deposits, commercial paper, repurchase agreements and money market funds to be cash equivalents. As of June 30, 2016 the Company's cash balances are invested in a diversified portfolio of cash and cash equivalents including money market funds, commercial paper rated A2/P2 and above with maturity under three months, time deposits and other short-term cash investments, which mature under three months with highly rated banking institutions. The cost of such funds approximates fair value based on the nature of the investment. Short-term Investments: Short-term investments of $47 million as of December 31, 2015 included corporate bonds, asset backed securities, and commercial paper with maturities between three and twelve months held as part of the Company's separately managed accounts. The cost of these Level 1 investments approximated fair value. These investments were liquidated during the first quarter of 2016. Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $5 million related to the Letter of Credit Facility, and $1 million related to cash collateral for other corporate purposes at June 30, 2016 . Investments in Affiliates: The Company recorded equity in the net income of affiliates of $3 million and $12 million for the three month periods ended June 30, 2016 and 2015 respectively. For the six month periods ended June 30, 2016 and 2015, the Company recorded $3 million and $11 million , respectively. Investments in affiliates were $58 million and $56 million at June 30, 2016 and December 31, 2015 , respectively. At June 30, 2016 and December 31, 2015, investments in affiliates accounted for under the equity method totaled $47 million and $45 million , respectively, while investments in affiliates accounted for under the cost method were $11 million at June 30, 2016 and December 31, 2015 . The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss is recorded, which is measured as the difference between carrying value and fair value. Product Warranty and Recall: Amounts accrued for product warranty and recall claims are based on management’s best estimates of the amounts that will ultimately be required to settle such items. The Company’s estimates for product warranty and recall obligations are developed with support from its sales, engineering, quality and legal functions and include due consideration of contractual arrangements, past experience, current claims and related information, production changes, industry and regulatory developments and various other considerations. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The following table provides a reconciliation of changes in the product warranty and recall claims liability: Six Months Ended June 30 2016 2015 (Dollars in Millions) Beginning balance $ 38 $ 20 Accruals for products shipped 8 8 Changes in estimates 1 — Specific cause actions (1 ) 8 Recoverable warranty/recalls (1 ) 5 Foreign currency 1 (3 ) Settlements (9 ) (3 ) Ending balance $ 37 $ 35 Recently Issued Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-9, "Revenue from Contracts with Customers", which is the new comprehensive revenue recognition standard that will supersede existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. To achieve this principle, an entity identifies the contract with a customer, identifies the separate performance obligations in the contract, determines the transaction price, allocates the transaction price to the separate performance obligations and recognizes revenue when each separate performance obligation is satisfied. This ASU allows for both retrospective and prospective methods of adoption. In July 2015, the FASB approved a one-year deferral of the effective date of the standard. As such, the new standard will become effective for annual and interim periods beginning after December 15, 2017 with early adoption on the original effective date permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements and anticipates changes to the revenue recognition of customer owned tooling and engineering recoveries. The Company expects to adopt this standard during the first quarter 2018. In April 2015, the FASB issued ASU No. 2015-3, "Simplifying the Presentation of Debt Issuance Cost". The ASU requires debt issuance costs associated with a recognized debt liability to be presented on the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted the guidance on a retrospective basis during the three months ending March 31, 2016 and accordingly, previously issued debt issuance costs in the amount of $1 million as of December 31, 2015 have been reclassified as a reduction of the corresponding debt liability. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)": The amendments supersede current lease requirements in Topic 840 which require lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation Stock Compensation (Topic 718)": Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, earnings per share, and the statement of cash flows. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 3. Discontinued Operations The operations subject to the Interiors Divestiture and Climate Transaction met conditions required to qualify for discontinued operations reporting. Accordingly, the results of operations for Interiors business subject to the Interiors Divestiture have been reclassified to (loss) income from discontinued operations, net of tax in the consolidated statements of comprehensive income for the three and six month periods ended June 30, 2016 and 2015 . The three and six month periods ended June 30, 2015 also included the results of operations for the Climate business, sold during the second quarter of 2015. Discontinued operations are summarized as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Sales $ 11 $ 933 $ 20 $ 2,168 Cost of sales 15 862 28 2,000 Gross margin (4 ) 71 (8 ) 168 Selling, general and administrative expenses 2 35 2 75 Loss (gain) on Climate Transaction 2 (2,332 ) 2 (2,332 ) Loss and impairment on Interiors Divestiture 1 2 2 16 Restructuring expense — 1 — 2 Interest expense, net — 1 — 2 Equity in net income of non-consolidated affiliates — 3 — 6 Other (income) expense, net 1 (1 ) 1 5 (Loss) income from discontinued operations before income taxes (10 ) 2,368 (15 ) 2,406 (Benefit) Provision for income taxes (1 ) 209 7 201 (Loss) income from discontinued operations, net of tax (9 ) 2,159 (22 ) 2,205 Net income attributable to non-controlling interests — 9 — 24 Net (loss) income from discontinued operations attributable to Visteon $ (9 ) $ 2,150 $ (22 ) $ 2,181 During the six months ended June 30, 2016, the Company recorded currency impacts of $8 million in connection with the Korean capital gains withholding tax recovered during the first quarter of 2016. During the three month period ended June 30, 2015, the Company received $3.4 billion of gross proceeds and recorded a $2.3 billion in pre-tax gain associated with the Climate Transaction. A summary of the gain is summarized below (dollars in millions): Gross proceeds (1) $ 3,423 Korea withholding tax (2) (377 ) Professional fees (3) (20 ) Korea security transaction tax (4) (17 ) Divested cash balances (5) (345 ) Net cash provided from investing activities 2,664 Net assets divested, excluding cash balances (5) (557 ) Information technology separation and service obligations (6) (53 ) Employee related charges (7) (45 ) Electronics business repurchase obligation (8) (50 ) Professional fees (3) (4 ) Korea withholding tax recoverable (2) 377 Net gain on Climate Transaction $ 2,332 (1) Gross proceeds of $3,423 million were received in connection with the Climate Transaction, translated at a spot rate of 1121.5 KRW to USD on June 9, 2015. Impacts of related hedging activities and exchange on proceeds conversion into USD are included in the Company's consolidated statements of comprehensive income as "Other (income) expense, net" for the three and six month periods ended June 30, 2015. (2) In connection with the transaction, the Company recorded a tax recoverable of $377 million for Korean capital gains tax withheld by the Purchasers and paid to the Korean government. This amount reduced proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. In January 2016, the Company recovered the entire amount of the Korean capital gains withholding tax, adjusted for currency and exchange impacts, of $ 356 million . (3) Professional fees of $24 million , representing fees paid to financial advisors, were based on a percentage of the gross proceeds, partially offset by previously paid retainer fees of $4 million , for a net payment of $20 million reducing proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. (4) Security transaction taxes of $17 million were remitted to the Korean government as of the transaction close, reducing proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. (5) Net assets of $902 million , including assets, liabilities, accumulated other comprehensive income and non-controlling interests, were divested in connection with the Climate Transaction. Divested assets included $345 million of cash balances, reflected as a reduction of transaction proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. (6) In connection with the Climate Transaction, the Company has entered an agreement pursuant to which Visteon will provide information technology ongoing and separation services for HVCC to fully operate as an independent entity with estimated costs of approximately $53 million . The information technology liability is included in the Company's consolidated balance sheets as "Other current liabilities" as of June 30, 2016 and December 31, 2015. (7) Employee related charges of $45 million include bonus payments, the Company's assumption of incentive plan liabilities, and impacts of employment change in control provisions. Bonus payments of $30 million are classified in the Company's net cash provided from operating activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. Amounts remaining to be paid are included in the Company's consolidated balance sheets as "Accrued employee liabilities" as of June 30, 2016 and December 31, 2015. (8) In connection with the Climate Transaction, the Company has entered an agreement to purchase certain electronics operations located in India, expected to close in 2016 after legal separation and regulatory approvals are met. The Company has recorded a repurchase obligation of $50 million , representing the estimated purchase price of the subject business. The Company continues to consolidate the business, with net assets of approximately $22 million as of June 30, 2016, based on the Company’s continued controlling financial interest. The Company’s controlling financial interest was evaluated based on continued operating control and obligation to fund losses or benefit from earnings. The business is included in a legal entity currently owned by HVCC and therefore the Electronics business assets are not available for general corporate purposes. The repurchase obligation is included in the Company’s consolidated balance sheets as “Other current liabilities” as of June 30, 2016 and December 31, 2015. As of June 30, 2016 and December 31, 2015, held for sale balances include assets and liabilities associated with operations subject to the Interiors Divestiture located in Argentina and Brazil. Held for sale balances, classified as "Other current assets" and "Other current liabilities" on the consolidated balance sheets are summarized as follows: June 30 December 31 2016 2015 (Dollars in Millions) ASSETS HELD FOR SALE Cash and equivalents $ 1 $ 1 Accounts receivable, net 12 9 Inventories, net 5 4 Other current assets 3 3 Total current assets held for sale 21 17 Total assets held for sale $ 21 $ 17 LIABILITIES HELD FOR SALE Accounts payable $ 8 $ 6 Employee benefits 3 2 Other current liabilities — 1 Total current liabilities held for sale 11 9 Total liabilities held for sale $ 11 $ 9 The Company has combined cash flows from discontinued operations with cash flows from continuing operations within the operating, investing and financing categories within the consolidated statements of cash flows. Cash and non-cash items for certain operating and investing activities related to discontinued operations for the six months ended June 30, 2016 and 2015 are as follows: Six Months Ended 2016 2015 (Dollars in Millions) Depreciation and amortization $ — $ 85 Asset impairments and losses on divestiture $ 2 $ 16 Capital expenditures $ 2 $ 81 |
Restructuring Activities
Restructuring Activities | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Note 4. Restructuring Activities During the three and six months ended June 30, 2016 , the Company recorded $7 million and $17 million of restructuring expenses, net of reversals of $1 million and $2 million , respectively. Given the economically-sensitive and highly competitive nature of the automotive electronics industry, the Company continues to closely monitor current market factors and industry trends taking action as necessary, including but not limited to, additional restructuring actions. However, there can be no assurance that any such actions will be sufficient to fully offset the impact of adverse factors on the Company or its results of operations, financial position and cash flows. Electronics During the first quarter of 2016, the Company announced a restructuring program to transform the Company's engineering organization and supporting functional areas to focus on execution and technology. The organization will be comprised of regional engineering, product management and advanced technologies, and global centers of competence. During the three and six months ended June 30, 2016 , the Company has recorded approximately $1 million and $12 million , respectively, of restructuring expenses under this program, associated with approximately 100 employees, of which $10 million remains accrued as of June 30, 2016 . The Company expects to record additional restructuring costs related to this program as the underlying plan is finalized. During the fourth quarter of 2015, the Company announced a restructuring program designed to reduce the workforce at a European Electronics facility. The Company recorded $12 million of severance and termination benefits under this program associated with approximately 100 employees, of which $9 million remains accrued as of June 30, 2016. The Company expects to record additional restructuring costs related to this program as the underlying plan is finalized. In connection with the Electronics Acquisition, the Company commenced a restructuring program designed to achieve annual cost savings through transaction synergies. During the three and six months ended June 30, 2015, the Company recorded $9 million and $12 million , respectively, of severance and termination benefits under this program associated with approximately 420 employees. As of June 30, 2016 , $6 million remains accrued for this program and charges are considered substantially complete. The Company previously announced a restructuring program designed to reduce fixed costs and to improve operational efficiency by addressing certain under-performing operations. In connection with that program, the Company announced plans to realign its corporate and administrative functions directly to their corresponding operational beneficiary. The Company recorded $3 million for restructuring expenses during the three and six months ended June 30, 2015, primarily related to severance and termination benefits. As of June 30, 2016, this program is considered substantially complete. Other During the three and six months ended June 30, 2016 , the Company recorded $7 million of restructuring expenses, related to severance and termination benefits, in connection with the wind-down of certain operations in South America, which remains accrued as of June 30, 2016. The Company expects to record additional restructuring costs related to this program as the underlying plan is finalized. During the three and six months ended June 30, 2015 , the Company recorded $1 million and $2 million respectively, of restructuring expenses, classified as discontinued operations, related to severance and termination benefits in connection with the reorganization of the Company's Climate operations in France. Restructuring Reserves Restructuring reserve balances of $37 million and $38 million at June 30, 2016 and December 31, 2015 , respectively, are classified as "Other current liabilities" on the consolidated balance sheets. The Company anticipates that the activities associated with the restructuring reserve balance will be substantially completed by June 30, 2017. The Company’s consolidated restructuring reserves and related activity are summarized below, including amounts associated with discontinued operations. Electronics Other Total (Dollars in Millions) December 31, 2015 $ 33 $ 5 $ 38 Expense 11 — 11 Utilization (13 ) — (13 ) Reversals (1 ) — (1 ) Foreign currency 1 — 1 March 31, 2016 31 5 36 Expense 1 7 8 Utilization (5 ) — (5 ) Reversals (1 ) — (1 ) Foreign currency (1 ) — (1 ) June 30, 2016 $ 25 $ 12 $ 37 Utilization represents payments for severance and other employee termination benefits and special termination benefits reclassified to pension and other postretirement employee benefit liabilities, where such payments are made from the Company’s benefit plans. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 5. Inventories Inventories consist of the following components: June 30 December 31 2016 2015 (Dollars in Millions) Raw materials $ 97 $ 90 Work-in-process 45 53 Finished products 45 44 $ 187 $ 187 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 6. Other Assets Other current assets are comprised of the following components: June 30 December 31 2016 2015 (Dollars in Millions) Recoverable taxes $ 59 $ 425 Prepaid assets and deposits 33 28 Joint venture receivables 25 44 Notes receivable 23 21 Assets held for sale 21 17 Contractually reimbursable engineering costs 17 34 Foreign currency hedges 7 6 Other 4 6 $ 189 $ 581 Recoverable taxes as of December 31, 2015 included Korean capital gains tax withheld by the Purchasers and paid to the Korean government in connection with the Climate Transaction of $364 million adjusted for currency and interest impacts. In January 2016, the Company recovered the entire amount of the Korean capital gains withholding tax, adjusted for currency impacts, of $356 million . As of June 30, 2016 and December 31, 2015 assets held for sale of $21 million and $17 million , respectively, represent assets associated with operations subject to the Interiors Divestiture located in Argentina and Brazil. See Note 3 "Discontinued Operations" for additional disclosures. Other non-current assets are comprised of the following components: June 30 December 31 2016 2015 (Dollars in Millions) Deferred tax assets $ 36 $ 34 Long term notes receivable 25 13 Recoverable taxes 24 20 Contractually reimbursable engineering costs 4 4 Other 21 17 $ 110 $ 88 Current and non-current contractually reimbursable engineering costs of $17 million and $4 million , respectively, at June 30, 2016 and $34 million and $4 million , respectively, at December 31, 2015 , are related to pre-production design and development costs incurred pursuant to long-term supply arrangements that are contractually guaranteed for reimbursement by customers. The Company expects to receive cash reimbursement payments of approximately $12 million during the remainder of 2016, $5 million in 2017, and $4 million 2018 and thereafter. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 7. Property and Equipment, net Property and equipment, net consists of the following: June 30 December 31 2016 2015 (Dollars in Millions) Land $ 17 $ 15 Buildings and improvements 66 64 Machinery, equipment and other 407 353 Construction in progress 37 75 527 507 Accumulated depreciation (201 ) (170 ) 326 337 Product tooling, net of amortization 16 14 $ 342 $ 351 Property and equipment is depreciated principally using the straight-line method of depreciation over the related asset's estimated useful life. Generally, buildings and improvements are depreciated over a 40 -year estimated useful life, leasehold improvements are depreciated on a straight-line basis over the initial lease term period, and machinery, equipment and other are depreciated over estimated useful lives ranging from 3 to 15 years. Product tooling is amortized using the straight-line method over the estimated life of the tool, generally not exceeding six years. Depreciation and amortization expenses for property and equipment, excluding discontinued operations, are summarized as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Depreciation $ 17 $ 17 $ 33 $ 32 Amortization — 1 1 2 $ 17 $ 18 $ 34 $ 34 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets, net at June 30, 2016 and December 31, 2015 , are comprised of the following: June 30, 2016 December 31, 2015 Estimated Weighted Average Useful Life (years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (Dollars in Millions) Definite-Lived: Developed technology 7 $ 39 $ 22 $ 17 $ 39 $ 20 $ 19 Customer related 10 82 22 60 84 17 67 Other 32 8 1 7 8 1 7 Subtotal 129 45 84 131 38 93 Indefinite-Lived: Goodwill 39 — 39 40 — 40 Total $ 168 $ 45 $ 123 $ 171 $ 38 $ 133 The Company recorded approximately $3 million and $7 million of amortization expense related to definite-lived intangible assets for the three and six months ended June 30, 2016 . The Company currently estimates annual amortization expense to be $14 million for 2016 , $12 million each year from 2017 through 2019 , and $10 million for 2020 . Indefinite-lived intangible assets are not amortized but are tested for impairment at least annually, or earlier when events and circumstances indicate that it is more likely than not that such assets have been impaired. A roll-forward of the carrying amounts of intangible assets is presented below: Definite-lived intangibles Indefinite-lived intangibles Developed Technology Customer Related Other Goodwill Total (Dollars in Millions) December 31, 2015 $ 19 $ 67 $ 7 $ 40 $ 133 Foreign currency — (2 ) — (1 ) (3 ) Amortization (2 ) (5 ) — — (7 ) June 30, 2016 $ 17 $ 60 $ 7 $ 39 $ 123 |
Other liabilities
Other liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 9. Other Liabilities Other current liabilities are summarized as follows: June 30 December 31 2016 2015 (Dollars in Millions) Electronics operations repurchase commitment $ 50 $ 50 Restructuring reserves 37 38 Contribution payable 33 33 Rent and royalties 25 33 Product warranty and recall accruals 23 26 Joint venture payables 17 18 Information technology separation and service obligations 14 36 Deferred income 13 11 Liabilities held for sale 11 9 Income taxes payable 9 63 Non-income taxes payable 8 20 Foreign currency hedges 5 1 Other 34 32 $ 279 $ 370 In connection with the Climate Transaction, the Company entered into an agreement to purchase certain electronics operations located in India, expected to close in 2016 after legal separation and regulatory approvals are met. The Company has recorded a repurchase commitment of $50 million during 2015, representing the estimated purchase price of the subject business. In connection with the Germany Interiors Divestiture, the Company will make a final contribution payment of approximately $33 million by November 2016. Information technology separation and service obligations were established in connection with the Climate Transaction and Interiors Divestiture, representing ongoing and separation services for the divested businesses to operate as independent entities. As of June 30, 2016 and December 31, 2015 remaining obligations totaled $14 million and $36 million , respectively. As of June 30, 2016 and December 31, 2015 liabilities held for sale of $11 million and $9 million , respectively, represent liabilities associated with operations subject to the Interiors Divestiture located in Argentina and Brazil. See Note 3 "Discontinued Operations" for additional disclosures. Other non-current liabilities are summarized as follows: June 30 December 31 2016 2015 (Dollars in Millions) Income tax reserves $ 27 $ 25 Deferred income 16 15 Product warranty and recall accruals 14 12 Non-income tax reserves 10 10 Other 14 13 $ 81 $ 75 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 10. Debt The Company’s short and long-term debt consists of the following: June 30 December 31 2016 2015 (Dollars in Millions) Short-Term Debt: Current portion of long-term debt $ 1 $ 3 Short-term borrowings 24 34 $ 25 $ 37 Long-Term Debt: Term debt facility $ 345 $ 345 Other 2 1 $ 347 $ 346 As of December 31, 2015 previously issued debt issuance costs were reclassified as a reduction of the corresponding debt liability in accordance with ASU No. 2015-3, "Simplifying the Presentation of Debt Issuance Cost". These costs approximated $1 million as of June 30, 2016 and December 31, 2015. Short-Term Debt Short-term borrowings are primarily related to the Company's non-U.S. joint ventures and are payable in USD, Chinese Yuan and Thai Baht. The Company had international affiliate short-term borrowings of $ 24 million and $34 million as of June 30, 2016 and December 31, 2015 respectively. Availability under outstanding affiliate credit facilities as of June 30, 2016 is approximately $30 million . Long-Term Debt The Credit Agreement, dated as of April 9, 2014 and as amended by Waiver and Amendment No. 1 dated as of March 25, 2015 (the “Credit Agreement”), by and among the Company, as borrower, each lender from time to time party thereto, each letter of credit issuer from time to time party thereto and Citibank, N.A., as administrative agent, provides for (i) an aggregate principal of $350 million (the “Term Facility”) and (ii) a $200 million revolving credit facility (the “Revolving Facility”). The Term Facility matures on April 9, 2021 and the Revolving Facility matures on April 9, 2019 . The Credit Agreement requires the Company and its subsidiaries to comply with customary affirmative and negative covenants, including financial covenants and contains customary events of default. The Company was in compliance with such covenants as of June 30, 2016 . Other Long-Term Debt The Company had $2 million and $1 million of other long-term debt outstanding as of June 30, 2016 and December 31, 2015 , respectively, primarily related to information technology software leases. |
Employee Retirement Benefits
Employee Retirement Benefits | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Retirement Benefits | NOTE 11. Employee Benefit Plans Defined Benefit Plans The Company's net periodic benefit costs for all defined benefit plans for the three month periods ended June 30, 2016 and 2015 were as follows: U.S. Plans Non-U.S. Plans 2016 2015 2016 2015 (Dollars in Millions) Costs Recognized in Income: Service cost $ — $ — $ 1 $ 1 Interest cost 7 9 3 4 Expected return on plan assets (11 ) (10 ) (3 ) (4 ) Settlements and curtailments — — 1 — Amortization of losses and other — — — 3 Net pension (income) expense $ (4 ) $ (1 ) $ 2 $ 4 The Company's net periodic benefit costs for all defined benefit plans for the six month periods ended June 30, 2016 and 2015 were as follows: U.S. Plans Non-U.S. Plans 2016 2015 2016 2015 (Dollars in Millions) Costs Recognized in Income: Service cost $ — $ — $ 2 $ 3 Interest cost 14 17 5 9 Expected return on plan assets (21 ) (21 ) (5 ) (9 ) Settlements and curtailments — — 1 — Amortization of losses and other — — — 4 Net pension (income) expense $ (7 ) $ (4 ) $ 3 $ 7 During the six months ended June 30, 2016 , cash contributions to the Company's U.S. and non-U.S. defined benefit pension plan were $3 million each. The Company expects to make cash contributions to its defined benefit pension plans of $14 million in 2016 . The Company’s expected 2016 contributions may be revised. On April 28, 2016, the Company purchased a non-participating annuity contract for all participants of the Canada non-represented plan. The annuity purchase covered 52 participants and resulted in the use of $5 million of plan assets for pension benefit obligation settlements of approximately $5 million . In connection with the annuity purchase, the Company recorded a settlement loss of approximately $1 million during the the three months ended June 30, 2016. 2016 Discount Rate for Estimated Service and Interest Cost: Through December 31, 2015, the Company recognized service and interest cost components of pension expense using a single weighted average discount method representing the constant annual rate required to discount all future benefit payments related to past service. During the fourth quarter of 2015, the Company changed the method used to estimate the service and interest components of net periodic benefit cost for pension benefits for its U.S. and certain non-U.S. plans. The Company has elected to utilize a disaggregated discount rate approach resulting in different amounts of interest cost compared to the traditional single weighted-average discount rate approach because of different weightings given to each subset of payments. This change does not affect the measurement of the total benefit obligation, but resulted in a decrease in the service and interest components of benefit cost beginning in 2016. Based on current economic conditions, the Company estimates that the service cost and interest cost for the affected plans will be reduced by approximately $7 million in 2016 as a result of the change in method. The Company has accounted for this as a change in accounting estimate that is inseparable from a change in accounting principle, and accordingly has accounted for it on a prospective basis. Defined Contribution Plans Most U.S. salaried employees and certain non-U.S. employees are eligible to participate in defined contribution plans by contributing a portion of their compensation, which is partially matched by the Company. For the U.S. defined contribution plan, the Company matches 100% of contributions on the first 6% of pay contributed. The expense related to matching contributions was approximately $2 million and $2 million for the three months ended June 30, 2016 and 2015 , respectively. The expense related to matching contributions was approximately $4 million and $7 million for the six months ended June 30, 2016 and 2015, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. Income Taxes During the three and six month periods ended June 30, 2016 , the Company recorded a provision for income tax on continuing operations of $9 million and $22 million , respectively, which includes income tax expense in countries where the Company is profitable, withholding taxes, changes in uncertain tax benefits, and the inability to record a tax benefit for pretax losses and/or recognize tax expense for pretax income in certain jurisdictions (including the U.S.) due to valuation allowances. Pretax losses from continuing operations in jurisdictions where valuation allowances are maintained and no income tax benefits are recognized totaled $12 million and $14 million , for the six months ended June 30, 2016 and 2015 , respectively, resulting in an increase in the Company's effective tax rate in those years. The Company provides for U.S. and non-U.S. income taxes and non-U.S. withholding taxes on the projected future repatriations of the earnings from its non-U.S. operations that are not considered permanently reinvested at each tier of the legal entity structure. During the six month period ended June 30, 2016 and 2015 , the Company recognized expense primarily related to non-U.S. withholding taxes, of $2 million and $3 million , respectively, reflecting the Company's forecasts which contemplate numerous financial and operational considerations that impact future repatriations. The Company's provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against income before income taxes, excluding equity in net income of non-consolidated affiliates for the period. Effective tax rates vary from period to period as separate calculations are performed for those countries where the Company's operations are profitable and whose results continue to be tax-effected and for those countries where full deferred tax valuation allowances exist and are maintained. In determining the estimated annual effective tax rate, the Company analyzes various factors, including forecasts of projected annual earnings, taxing jurisdictions in which the pretax income and/or pretax losses will be generated, the ability to use tax credits and net operating loss carryforwards, and available tax planning strategies. The Company’s estimated annual effective tax rate is updated each quarter and may be significantly impacted by changes to the mix of forecasted earnings by tax jurisdiction. The tax impact of adjustments to the estimated annual effective tax rate are recorded in the period such estimates are revised. The Company is also required to record the tax impact of certain other non-recurring tax items, including changes in judgments about valuation allowances and uncertain tax positions, and changes in tax laws or rates, in the interim period in which they occur, rather than included in the estimated annual effective tax rate. The need to maintain valuation allowances against deferred tax assets in the U.S. and other affected countries will cause variability in the Company’s quarterly and annual effective tax rates. Full valuation allowances against deferred tax assets in the U.S. and applicable foreign countries will be maintained until sufficient positive evidence exists to reduce or eliminate them. The factors considered by management in its determination of the probability of the realization of the deferred tax assets include, but are not limited to, recent historical financial results, historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. If, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. As such, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. In regards to the full valuation allowance recorded against the U.S. net deferred tax assets, significant judgment is applied in determining whether a carryback opportunity related to the 2015 tax year provides an incremental source of taxable income to support partial realization of the U.S. net deferred tax assets, which includes estimating the amount of future tax losses that would be available to carryback. Unrecognized Tax Benefits Gross unrecognized tax benefits at June 30, 2016 and December 31, 2015 , including amounts attributable to discontinued operations, were $32 million and $37 million , respectively. Of these amounts approximately $23 million and $29 million at June 30, 2016 and December 31, 2015, respectively, represent the amount of unrecognized benefits that, if recognized, would impact the effective tax rate. The gross unrecognized tax benefit differs from that which would impact the effective tax rate due to uncertain tax positions embedded in other deferred tax attributes carrying a full valuation allowance. Since the uncertainty is expected to be resolved while a full valuation allowance is maintained, these uncertain tax positions should not impact the effective tax rate in current or future periods. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense and related amounts accrued at June 30, 2016 and December 31, 2015 were $4 million and $3 million , respectively. The $5 million net decrease in gross unrecognized tax benefits reflects $7 million in decreases primarily related to settling tax assessments from the Korean tax authorities related to underpayment of withholding taxes, and favorable developments in connection with an ongoing audit in Hungary. These decreases were partially offset by increases for audit developments in Mexico and anticipated transfer pricing-related exposures worldwide totaling $2 million . With few exceptions, the Company is no longer subject to U.S. federal tax examinations for years before 2012 or state and local, or non-U.S. income tax examinations for years before 2003 although U.S. net operating losses carried forward into open tax years technically remain open to adjustment. Although it is not possible to predict the timing of the resolution of all ongoing tax audits with accuracy, it is reasonably possible that certain tax proceedings in Europe, Asia, Mexico and the U.S. could conclude within the next twelve months and result in a significant increase or decrease in the balance of gross unrecognized tax benefits. Given the number of years, jurisdictions and positions subject to examination, the Company is unable to estimate the full range of possible adjustments to the balance of unrecognized tax benefits. The long-term portion of uncertain income tax positions (including interest) in the amount of $27 million is included in Other non-current liabilities on the consolidated balance sheet. A reconciliation of the beginning and ending amount of unrecognized tax benefits including amounts attributable to discontinued operations is as follows: Six Months Ended (Dollars in Millions) Beginning balance $ 37 Tax positions related to current period: Additions 1 Tax positions related to prior periods: Additions 1 Settlements with tax authorities (7 ) Ending balance $ 32 During 2012, Brazil tax authorities issued tax assessment notices to Visteon Sistemas Automotivos (“Sistemas”) related to the sale of its chassis business to a third party, which required a deposit in the amount of $15 million during 2013 necessary to open a judicial proceeding against the government in order to suspend the debt and allow Sistemas to operate regularly before the tax authorities after attempts to reopen an appeal of the administrative decision failed. Adjusted for currency impacts and accrued interest, the deposit amount is approximately $14 million , as of June 30, 2016. The Company believes that the risk of a negative outcome is remote once the matter is fully litigated at the highest judicial level. These appeal payments, as well as income tax refund claims associated with other jurisdictions, total $15 million as of June 30, 2016, and are included in Other non-current assets on the consolidated balance sheet. |
Stockholders' Equity and Non-co
Stockholders' Equity and Non-controlling Interests | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity and Non-controlling Interests | NOTE 13. Stockholders’ Equity and Non-controlling Interests Changes in equity for the three months ended June 30, 2016 and 2015 are as follows: 2016 2015 Visteon NCI Total Visteon NCI Total (Dollars in Millions) Three Months Ended June 30 Beginning balance $ 586 $ 146 $ 732 $ 883 $ 940 $ 1,823 Net income from continuing operations 35 4 39 58 7 65 Net (loss) income from discontinued operations (9 ) — (9 ) 2,150 9 2,159 Net income 26 4 30 2,208 16 2,224 Other comprehensive income (loss) Foreign currency translation adjustments — (2 ) (2 ) 67 — 67 Benefit plans 1 — 1 17 — 17 Unrealized hedging gain (loss) — — — (4 ) (1 ) (5 ) Total other comprehensive income (loss) 1 (2 ) (1 ) 80 (1 ) 79 Stock-based compensation, net 3 — 3 11 — 11 Warrant exercises — — — 6 — 6 Share repurchase — — — (500 ) — (500 ) Business (divestitures) acquisitions — — — — (785 ) (785 ) Dividends to non-controlling interests — — — — (8 ) (8 ) Ending balance $ 616 $ 148 $ 764 $ 2,688 $ 162 $ 2,850 Changes in equity for the six months ended June 30, 2016 and 2015 are as follows: 2016 2015 Visteon NCI Total Visteon NCI Total (Dollars in Millions) Six Months Ended June 30 Beginning balance $ 1,057 $ 142 $ 1,199 $ 865 $ 956 $ 1,821 Net income from continuing operations 67 8 75 77 12 89 Net (loss) income from discontinued operations (22 ) — (22 ) 2,181 24 2,205 Net income 45 8 53 2,258 36 2,294 Other comprehensive income (loss) Foreign currency translation adjustments 23 (2 ) 21 — (12 ) (12 ) Benefit plans 1 — 1 33 1 34 Unrealized hedging gain (loss) (4 ) — (4 ) 5 2 7 Total other comprehensive income (loss) 20 (2 ) 18 38 (9 ) 29 Stock-based compensation, net (6 ) — (6 ) 12 — 12 Warrant exercises — — — 15 — 15 Share repurchase (500 ) — (500 ) (500 ) — (500 ) Business (divestitures) acquisitions — — — — (785 ) (785 ) Dividends to non-controlling interests — — — — (36 ) (36 ) Ending balance $ 616 $ 148 $ 764 $ 2,688 $ 162 $ 2,850 Share Repurchase Program On June 16, 2015, the Company announced an accelerated stock buyback ("ASB") program with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $500 million , as the first of announced shareholder return actions. Under the program, the Company paid the financial institution $500 million and received an initial delivery of 3,712,297 shares of common stock using a reference price of $107.75 . The program concluded in December 2015 and the Company received an additional 1,058,965 shares. The final settlement price for all shares delivered under this 2015 ASB program was $104.79 . During the fourth quarter of 2015, the Company entered into an agreement with a third party financial institution to purchase up to $150 million of Visteon common stock in accordance with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934 ("10b5-1 Share Repurchase Program"). During the period of the program, which concluded on March 1, 2016, the Company paid approximately $105 million to repurchase 1,607,849 shares at an average price of $65.05 . On March 1, 2016, the Company entered into another ASB program with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $395 million . Under the program, the Company paid the financial institution $395 million and received an initial delivery of 4,370,678 shares of common stock using a reference price of $72.30 . The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of the Company’s common stock during the term of the transaction, less an agreed discount and subject to adjustments pursuant to the terms and conditions of the ASB Agreement. The final settlement of this ASB Agreement is expected to occur by the end of 2016, but may be accelerated at the option of the third-party financial institution. The Company anticipates that additional repurchases of common stock, if any, would occur from time to time in open market transactions or in privately negotiated transactions depending on market and economic conditions, share price, trading volume, alternative uses of capital and other factors. Distribution On December 9, 2015 , the Company declared a special distribution of $43.40 per share of its common stock outstanding as of January 15, 2016 , or approximately $1.75 billion in the aggregate. On January 22, 2016 approximately $1.74 billion was paid, the remaining $15 million will be paid over a two-year period upon vesting and settlement of restricted stock units and performance-based share units previously granted to the Company's employees. These amounts were classified as "Distribution payable" on the Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015. The special cash distribution was funded from Climate Transaction proceeds. Non-Controlling Interests Non-controlling interests in the Visteon Corporation economic entity are as follows: June 30 December 31 2016 2015 (Dollars in Millions) Yanfeng Visteon Automotive Electronics Co., Ltd. ("YFVE") $ 104 $ 100 Shanghai Visteon Automotive Electronics, Co., Ltd. 43 41 Other 1 1 $ 148 $ 142 Accumulated Other Comprehensive (Loss) Income Changes in Accumulated other comprehensive (loss) income (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Changes in AOCI: Beginning balance $ (171 ) $ (341 ) $ (190 ) $ (299 ) Other comprehensive income (loss) before reclassification, net of tax 1 (4 ) 22 (42 ) Amounts reclassified from AOCI — — (2 ) (4 ) Climate divestiture — 84 — 84 Ending balance $ (170 ) $ (261 ) $ (170 ) $ (261 ) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (132 ) $ (205 ) $ (155 ) $ (138 ) Other comprehensive income before reclassification, net of tax (a) — 4 23 (63 ) Climate divestiture (b) — 63 — 63 Ending balance (132 ) (138 ) (132 ) (138 ) Benefit plans Beginning balance (36 ) (140 ) (36 ) (156 ) Other comprehensive income before reclassification, net of tax (a) — (6 ) — 8 Amounts reclassified from AOCI (c) 1 3 1 5 Climate divestiture (b) — 20 — 20 Ending balance (35 ) (123 ) (35 ) (123 ) Unrealized hedging (loss) gain Beginning balance (3 ) 4 1 (5 ) Other comprehensive income (loss) before reclassification, net of tax (d) 1 (2 ) (1 ) 13 Amounts reclassified from AOCI (e) (1 ) (3 ) (3 ) (9 ) Climate divestiture (b) — 1 — 1 Ending balance (3 ) — (3 ) — Total AOCI $ (170 ) $ (261 ) $ (170 ) $ (261 ) (a) There were no income tax effects for the three and six month periods ending June 30, 2016 and 2015, due to the recording of valuation allowance. (b) Amounts are included in (Loss)income from discontinued operations, net of tax, on the consolidated statements of comprehensive income. (c) Amount included in the computation of net periodic pension cost. (See Note 11, "Employee Benefit Plans" for additional details.) (d) Net tax expense of $1 million and tax benefit of $1 million are related to unrealized hedging (loss) gain for the three months ended June 30, 2016 and 2015 , respectively. Net tax expense of $0 million and $2 million are related to unrealized hedging gain for the six months ended June 30, 2016 and 2015, respectively. (e) Amount is included in Cost of sales in the consolidated statements of comprehensive income. Stock Warrants During the three and six months ended June 30, 2015, the Company received payments of $5 million and $15 million related to approximately 139,000 and 303,000 warrants, respectively, converted to shares of common stock at an exercise price of $58.80 per share. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 14. Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to Visteon by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common and potential dilutive common shares outstanding. Performance based share units are considered contingently issuable shares, and are included in the computation of diluted earnings per share based on the number of shares that would be issuable if the reporting date were the end of the contingency period and if the result would be dilutive. The table below provides details underlying the calculations of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In Millions, Except Per Share Amounts) Numerator: Net income from continuing operations attributable to Visteon $ 35 $ 58 $ 67 $ 77 (Loss) income from discontinued operations, net of tax (9 ) 2,150 (22 ) 2,181 Net income attributable to Visteon $ 26 $ 2,208 $ 45 $ 2,258 Denominator: Average common stock outstanding - basic 34.0 43.4 36.3 43.8 Dilutive effect of performance based share units and other 0.4 1.0 0.4 1.1 Diluted shares 34.4 44.4 36.7 44.9 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon: Continuing operations $ 1.03 $ 1.34 $ 1.85 $ 1.76 Discontinued operations (0.26 ) 49.54 (0.61 ) 49.79 $ 0.77 $ 50.88 $ 1.24 $ 51.55 Diluted earnings (loss) per share attributable to Visteon: Continuing operations $ 1.02 $ 1.31 $ 1.83 $ 1.71 Discontinued operations (0.26 ) 48.42 (0.60 ) 48.58 $ 0.76 $ 49.73 $ 1.23 $ 50.29 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements and Financial Instruments | NOTE 15. Fair Value Measurements and Financial Instruments The Company is exposed to various market risks including, but not limited to, changes in foreign currency exchange rates and market interest rates. The Company manages these risks, in part, through the use of derivative financial instruments. The maximum length of time over which the Company hedges the variability in the future cash flows for forecast transactions excluding those forecast transactions related to the payment of variable interest on existing debt is up to eighteen months from the date of the forecast transaction. The maximum length of time over which the Company hedges forecast transactions related to the payment of variable interest on existing debt is the term of the underlying debt. The use of derivative financial instruments creates exposure to credit loss in the event of nonperformance by the counter-party to the derivative financial instruments. The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. • Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. • Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. • Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Fair Value of Debt The Company's fair value of debt was approximately $376 million and $385 million at June 30, 2016 and December 31, 2015 , respectively. Fair value estimates were based on the current rates offered to the Company for debt of the same remaining maturities. Accordingly, the Company's debt fair value disclosures are classified as Level 2, "Other Observable Inputs" in the fair value hierarchy. Financial Instruments Foreign Exchange Risk: The Company’s net cash inflows and outflows exposed to the risk of changes in foreign currency exchange rates arise from the sale of products in countries other than the manufacturing source, foreign currency denominated supplier payments, debt and other payables, subsidiary dividends and investments in subsidiaries. The Company utilizes derivative financial instruments, including forward and option contracts, to protect the Company’s cash flow from changes in exchange rates. Foreign currency exposures are reviewed periodically and any natural offsets are considered prior to entering into a derivative financial instrument. The Company’s current primary hedged foreign currency exposures include the Euro, Japanese Yen and Mexican Peso. Where possible, the Company utilizes a strategy of partial coverage for transactions in these currencies. Foreign currency hedge instruments are measured at fair value on a recurring basis under an income approach using industry-standard models that consider various assumptions, including time value, volatility factors, current market and contractual prices for the underlying and non-performance risk. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Accordingly, the Company's foreign currency instruments are classified as Level 2, "Other Observable Inputs" in the fair value hierarchy. As of June 30, 2016 and December 31, 2015 , the Company had derivative instruments that consisted primarily of option and forward contracts to hedge changes in foreign currency exchange rates with notional amounts of approximately $140 million and $147 million , respectively. Fair value estimates of these contracts are based on quoted market prices and other observable inputs. As of June 30, 2016 and December 31, 2015 , respectively, approximately $107 million and $114 million of the instruments have been designated as cash flow hedges with the effective portion of the gain or loss reported in the "Accumulated other comprehensive loss" component of Stockholders’ equity in the Company’s consolidated balance sheet. There was no ineffectiveness associated with these derivatives as of June 30, 2016 and the fair value of such derivatives was an asset of $5 million . During 2015, the Company entered into currency exchange derivatives with a notional amount of $150 million to manage foreign currency exposure on certain non-U.S. denominated foreign entities. These derivatives have been designated as hedges of the Company's net investments in European affiliates with the effective portion of the gain or loss reported in the "Accumulated other comprehensive loss" component of Stockholder's equity in the Company's consolidated balance sheet. There was no ineffectiveness associated with these derivatives as of June 30, 2016 and the fair value of such derivatives was an asset of $2 million . In December 2014, the Company entered into a foreign currency option contract with a notional amount of $2,229 million to manage foreign currency exposure on anticipated KRW denominated proceeds in connection with the Climate Transaction. During the six months ended June 30, 2015, the Company entered into offsetting foreign currency option contracts and non-deliverable forwards with notional amounts of $2,229 million each to lower related premium expenses. Final settlement of these hedges occurred during the second quarter of 2015 in connection with the closing of the Climate Transaction. The Company recorded gains of $6 million and $3 million for the three and six months ended June 30, 2015, respectively, reflecting the change in the fair value of the foreign currency option and forward contracts, which was classified as "Other (income) expense, net" in the Company’s consolidated statements of comprehensive income. Interest Rate Risk: The Company is subject to interest rate risk principally in relation to variable-rate debt. The Company uses derivative financial instruments to manage exposure to fluctuations in interest rates in connection with its risk management policies. During 2015, the Company entered into interest rate swaps with a notional amount of $150 million that effectively convert designated cash flows associated with underlying interest payments on the Term Facility from a variable interest rate to a fixed interest rate, the maturities of these swaps will not exceed the underlying Term Facility. The instruments have been designated as cash flow hedges with the effective portion of the gain or loss reported in "Accumulated other comprehensive loss" component of Stockholders' equity in the Company's consolidated balance sheets and such gains and losses will be reclassified at the time the underlying hedged transactions are realized. The ineffective portion of these swaps is assessed based on the hypothetical derivative method and is recorded as interest expense in the Company's consolidated statements of comprehensive income. As of June 30, 2016 there was no ineffectiveness associated with these derivatives and the fair value was a liability of $5 million . The interest rate swaps are valued under an income approach using industry-standard models that consider various assumptions, including time value, volatility factors, current market and contractual prices for the underlying and non-performance risk. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace. Accordingly, the Company's interest rate swaps are classified as Level 2, "Other Observable Inputs" in the fair value hierarchy. Financial Statement Presentation The Company presents its derivative positions and any related material collateral under master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. Derivative financial instruments designated and non-designated as hedging instruments are included in the Company’s consolidated balance sheets at June 30, 2016 and December 31, 2015 , as follows: Gross Amount Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position June 30 December 31 June 30 December 31 June 30 December 31 2016 2015 2016 2015 2016 2015 (Dollars in Millions) Other Current Assets: Designated $ 7 $ 7 $ 1 $ 1 $ 6 $ 6 Non-designated 1 — — — 1 — Foreign Currency Derivatives $ 8 $ 7 $ 1 $ 1 $ 7 $ 6 Other Current Liabilities: Designated-Interest Rate Swaps $ 5 $ 1 $ — $ — $ 5 $ 1 Gains and losses on derivative financial instruments for the three and six months ended June 30, 2016 and 2015 are as follows: Recorded (Loss) Income into AOCI, net of tax Reclassified from AOCI into (income) Loss Recorded in (income) Loss 2016 2015 2016 2015 2016 2015 (Dollars in Millions) Three Months Ended June 30 Foreign currency risk - Cost of sales: Cash flow hedges $ 2 $ (2 ) $ (1 ) $ (3 ) $ — $ — Net investment hedges 4 1 — — — — Non-designated cash flow hedges — — — — (1 ) (2 ) Interest rate risk: Interest rate swap $ (1 ) $ — $ — $ — $ — $ — Foreign currency risk - Other (income) expense, net: KRW option and forward contracts — — — (8 ) — 2 $ 5 $ (1 ) $ (1 ) $ (11 ) $ (1 ) $ — Six Months Ended June 30 Foreign currency risk - Cost of sales Cash flow hedges $ 3 $ 13 $ (3 ) $ (9 ) $ — $ — Net investment hedges (2 ) 1 — — — — Non-designated cash flow hedges — — — — (1 ) (3 ) Interest rate risk: Interest rate swap (4 ) — — — — — Foreign currency risk - Other income : KRW option and forward contracts — (4 ) — (8 ) — 5 $ (3 ) $ 10 $ (3 ) $ (17 ) $ (1 ) $ 2 Concentrations of Credit Risk Financial instruments including cash equivalents, derivative contracts, and accounts receivable, expose the Company to counter-party credit risk for non-performance. The Company’s counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company’s requirement of high credit standing. The Company’s counterparties for derivative contracts are substantial investment and commercial banks with significant experience using such derivatives. The Company manages its credit risk through policies requiring minimum credit standing and limiting credit exposure to any one counter-party and through monitoring counter-party credit risks. The Company's credit risk with any individual customer does not exceed ten percent of total accounts receivables except for Ford and its affiliates which represents 24% and 18% at June 30, 2016 and December 31, 2015 , respectively, Mazda which represents 10% of the Company's accounts receivables at June 30, 2016 and December 31, 2015 , respectively, and Nissan/Renault which represents 11% of the Company's accounts receivables at June 30, 2016 and December 31, 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 16. Commitments and Contingencies Litigation and Claims In 2003, the Local Development Finance Authority of the Charter Township of Van Buren, Michigan (the “Township”) issued approximately $28 million in bonds finally maturing in 2032, the proceeds of which were used at least in part to assist in the development of the Company’s U.S. headquarters located in the Township. During January 2010, the Company and the Township entered into a settlement agreement (the “Settlement Agreement”) that, among other things, reduced the taxable value of the headquarters property to current market value and facilitated certain claims of the Township in the Company’s chapter 11 proceedings. The Settlement Agreement also provided that the Company would continue to negotiate in good faith with the Township in the event that property tax payments was inadequate to permit the Township to meet its payment obligations with respect to the bonds. In September 2013, the Township notified the Company in writing that it is estimating a shortfall in tax revenues of between $25 million and $36 million , which could render it unable to satisfy its payment obligations under the bonds. On May 12, 2015, the Township commenced a proceeding against the Company in the U. S. Bankruptcy Court for the District of Delaware in connection with the foregoing. Upon the Company’s motion to dismiss, the Township dismissed the proceeding before the Delaware Bankruptcy Court and re-commenced the proceeding against the Company in the Michigan Wayne County Circuit Court for the State of Michigan on July 2, 2015. The Township sought damages or, alternatively, declaratory judgment that, among other things, the Company is responsible under the Settlement Agreement for payment of any shortfall in the bond debt service payments. On February 2, 2016 the Wayne County Circuit Court dismissed the Township’s lawsuit without prejudice on the basis that the Township’s claims were not ripe for adjudication and the Township has appealed this decision to the Michigan Court of Appeals. The Company disputes the factual and legal assertions made by the Township and intends to vigorously defend the matter. The Company is not able to estimate the possible loss or range of loss in connection with this matter. In November 2013, the Company and HVCC, jointly filed an Initial Notice of Voluntary Self-Disclosure statement with the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) regarding certain sales of automotive HVAC components by a minority-owned, Chinese joint venture of HVCC into Iran. The Company updated that notice in December 2013, and subsequently filed a voluntary self-disclosure regarding these sales with OFAC in March 2014. In May 2014, the Company voluntarily filed a supplementary self-disclosure identifying additional sales of automotive HVAC components by the Chinese joint venture, as well as similar sales involving an HVCC subsidiary in China, totaling approximately $12 million , and filed a final voluntary-self disclosure with OFAC on October 17, 2014. OFAC is currently reviewing the results of the Company’s investigation. Following that review, OFAC may conclude that the disclosed sales resulted in violations of U.S. economic sanctions laws and warrant the imposition of civil penalties, such as fines, limitations on the Company's ability to export products from the United States, and/or referral for further investigation by the U.S. Department of Justice. Any such fines or restrictions may be material to the Company’s financial results in the period in which they are imposed, but at this time is not able to estimate the possible loss or range of loss in connection with this matter. Additionally, disclosure of this conduct and any fines or other action relating to this conduct could harm the Company’s reputation and have a material adverse effect on our business, operating results and financial condition. The Company cannot predict when OFAC will conclude its own review of our voluntary self-disclosures or whether it may impose any of the potential penalties described above. The Company's operations in Brazil are subject to highly complex labor, tax, customs and other laws. While the Company believes that it is in compliance with such laws, it is periodically engaged in litigation regarding the application of these laws. As of June 30, 2016 , the Company maintained accruals of approximately $10 million for claims aggregating approximately $83 million . The amounts accrued represent claims that are deemed probable of loss and are reasonably estimable based on the Company's assessment of the claims and prior experience with similar matters. While the Company believes its accruals for litigation and claims are adequate, the final amounts required to resolve such matters could differ materially from recorded estimates and the Company's results of operations and cash flows could be materially affected. Guarantees and Commitments On July 8, 2016, Visteon completed the acquisition of the shares of AllGo Systems, Inc., USA ("AllGo Systems") in exchange for the payment of $15 million . Future contingent consideration of $7 million may be paid over the next two years if certain technology and key employee milestones are achieved. AllGo Systems is a leading developer of embedded multimedia system solutions to global vehicle manufacturers. The Company provided a $26 million loan guarantee to YFVIC, a 50% owned joint venture, in connection with the October 2014 YFVIC acquisition of a 49% direct ownership interest in YFVE. The guarantee contains standard non-payment provisions to cover the borrowers in event of non-payment of principal, accrued interest, and other fees for its five year tenor. As part of the agreements of the Climate Transaction and Interiors Divestiture, the Company continues to provide lease guarantees to divested Climate and Interiors entities. As of June 30, 2016, the Company has approximately $10 million and $8 million outstanding guarantees respectively related to divested Climate and Interiors entities. These guarantees will generally cease upon expiration of current lease agreements. As part of the Interiors Divestiture the Company agreed to provide a $56 million revolving credit facility in connection with the Master Closing, representing the shortfall to the targeted amount of $90 million in external financing. The seller-backed facility was reduced as buyer credit facilities ramped up and the seller-backed facility will be reduced further if the buyer adds working capital facilities in Russia and Thailand. Draws under the seller-backed facility are only be available to the extent buyer external credit facilities are fully drawn and any draws on the seller-backed facility generally must be repaid prior amounts outstanding on any external credit facilities. The seller-backed facility matures on November 1, 2017, at an interest rate of Libor plus 5% and a default rate of interest for any interest and/or principal payment defaults. As of April 6, 2016, this revolving credit facility to the buyer was reduced to $35 million as additional receivable financing became available to the buyer. As of June 30, 2016, there were no draws on this facility. Five days before the Argentina and Brazil closing, the buyer has the option to request replacement of the existing revolving credit facility with a three year term loan of between $5 million and $10 million . Environmental Matters The Company is subject to the requirements of federal, state, local and foreign environmental and occupational safety and health laws and regulations and ordinances. These include laws regulating air emissions, water discharge and waste management. The Company is also subject to environmental laws requiring the investigation and cleanup of environmental contamination at properties it presently owns or operates and at third-party disposal or treatment facilities to which these sites send or arranged to send hazardous waste. The Company is aware of contamination at some of its properties. These sites are in various stages of investigation and cleanup. The Company currently is, has been, and in the future may become the subject of formal or informal enforcement actions or procedures. Costs related to environmental assessments and remediation efforts at operating facilities, previously owned or operated facilities, or other waste site locations are accrued when it is probable that a liability has been incurred and the amount of that liability can be reasonably estimated. Estimated costs are recorded at undiscounted amounts, based on experience and assessments, and are regularly evaluated. The liabilities are recorded in Other current liabilities and Other non-current liabilities in the consolidated balance sheets. At June 30, 2016 , and December 31, 2015 , the Company had recorded a reserve of less than $1 million for environmental matters. However, estimating liabilities for environmental investigation and cleanup is complex and dependent upon a number of factors beyond the Company’s control and which may change dramatically. Accordingly, although the Company believes its reserve is adequate based on current information, the Company cannot provide any assurance that its ultimate environmental investigation and cleanup costs and liabilities will not exceed the amount of its current reserve. Other Contingent Matters Various legal actions, governmental investigations and proceedings and claims are pending or may be instituted or asserted in the future against the Company, including those arising out of alleged defects in the Company’s products; governmental regulations relating to safety; employment-related matters; customer, supplier and other contractual relationships; intellectual property rights; product warranties; product recalls; and environmental matters. Some of the foregoing matters may involve compensatory, punitive or antitrust or other treble damage claims in very large amounts, or demands for recall campaigns, environmental remediation programs, sanctions, or other relief which, if granted, would require very large expenditures. The Company enters into agreements that contain indemnification provisions in the normal course of business for which the risks are considered nominal and impracticable to estimate. Contingencies are subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. Reserves have been established by the Company for matters discussed in the immediately foregoing paragraph where losses are deemed probable and reasonably estimable. It is possible, however, that some of the matters discussed in the foregoing paragraph could be decided unfavorably to the Company and could require the Company to pay damages or make other expenditures in amounts, or a range of amounts, that cannot be estimated at June 30, 2016 and that are in excess of established reserves. The Company does not reasonably expect, except as otherwise described herein, based on its analysis, that any adverse outcome from such matters would have a material effect on the Company’s financial condition, results of operations or cash flows, although such an outcome is possible. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 17. Segment Information Financial results for the Company's reportable segments have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's chief operating decision-making group in allocating resources and in assessing performance. The Company’s chief operating decision making group, comprised of the Chief Executive Officer and Chief Financial Officer, evaluates the performance of the Company’s segments primarily based on net sales, before elimination of inter-company shipments, Adjusted EBITDA (non-GAAP financial measure) and operating assets. The Company’s current reportable segments are as follows: • Electronics - The Company's Electronics segment provides vehicle cockpit electronics products to customers, including audio systems, information displays, instrument clusters, head up displays, infotainment systems, and telematics solutions. • Other - Other includes entities in South America and South Africa previously associated with the Climate business but not subject to the Climate Transaction. During 2015, other also included the Berlin, Germany operations previously associated with the Interiors business and sold during the fourth quarter of 2015. Segment Sales Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Electronics $ 762 $ 780 $ 1,555 $ 1,561 Other 11 42 20 86 Eliminations — (10 ) — (19 ) Total consolidated sales $ 773 $ 812 $ 1,575 $ 1,628 Segment Adjusted EBITDA The Company defines Adjusted EBITDA as net income attributable to the Company adjusted to eliminate the impact of depreciation and amortization, restructuring expense, net interest expense, loss on debt extinguishment, equity in net income of non-consolidated affiliates, loss on divestiture, gain on non-consolidated affiliate transactions, other net expense, provision for income taxes, discontinued operations, net income attributable to non-controlling interests, non-cash stock-based compensation expense, pension settlement gains and other non-operating gains and losses. Adjusted EBITDA is presented as a supplemental measure of the Company's financial performance that management believes is useful to investors because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company's operating activities across reporting periods. Not all companies use identical calculations and, accordingly, the Company's presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA is not a recognized term under accounting principles generally accepted in the United States and does not purport to be a substitute for net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and is not intended to be a measure of cash flow available for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. In addition, the Company uses Adjusted EBITDA (i) as a factor in incentive compensation decisions, (ii) to evaluate the effectiveness of the Company's business strategies and (iii) because the Company's credit agreements use measures similar to Adjusted EBITDA to measure compliance with certain covenants. Adjusted EBITDA, as determined and measured by the Company should not be compared to similarly titled measures reported by other companies. Segment Adjusted EBITDA is summarized below: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Electronics $ 79 $ 60 $ 173 $ 144 Other (2 ) — (7 ) (6 ) Adjusted EBITDA $ 77 $ 60 $ 166 $ 138 During the first quarter of 2016, the Company changed its corporate cost allocation methodology for management reporting purposes. Accordingly, costs associated with the Company's corporate headquarters and other administrative support functions for the three and six months ended June 30, 2015, have been reclassified to the Electronics operating segment, representing ongoing business costs. The reconciliation of Adjusted EBITDA to net income attributable to Visteon is as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Adjusted EBITDA $ 77 $ 60 $ 166 $ 138 Depreciation and amortization 20 21 41 42 Restructuring expense 7 12 17 15 Interest expense, net 3 6 5 11 Loss on debt extinguishment — 5 — 5 Equity in net income of non-consolidated affiliates (3 ) (12 ) (3 ) (11 ) Gain on sale of non-consolidated affiliates — (62 ) — (62 ) Other (income) expense, net — (4 ) 4 8 Provision for income taxes 9 24 22 33 Loss (income) from discontinued operations, net of tax 9 (2,159 ) 22 (2,205 ) Net income attributable to non-controlling interests 4 16 8 36 Non-cash, stock-based compensation expense 2 2 4 5 Other — 3 1 3 Net income attributable to Visteon Corporation $ 26 $ 2,208 $ 45 $ 2,258 Segment Total Assets: Total Assets June 30 December 31 2016 2015 (Dollars in Millions) Electronics $ 2,306 $ 4,649 Other 38 32 Total consolidated assets $ 2,344 $ 4,681 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty and Recall: Amounts accrued for product warranty and recall claims are based on management’s best estimates of the amounts that will ultimately be required to settle such items. The Company’s estimates for product warranty and recall obligations are developed with support from its sales, engineering, quality and legal functions and include due consideration of contractual arrangements, past experience, current claims and related information, production changes, industry and regulatory developments and various other considerations. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The following table provides a reconciliation of changes in the product warranty and recall claims liability: |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation: The consolidated financial statements include the accounts of the Company and all subsidiaries that are more than 50% owned and over which the Company exercises control. Investments in affiliates of greater than 20% and for which the Company exercises significant influence but does not exercise control are accounted for using the equity method. All other investments in non-consolidated affiliates are accounted for using the cost method. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect amounts reported herein. Management believes that such estimates, judgments and assumptions are reasonable and appropriate. However, due to the inherent uncertainty involved, actual results may differ from those provided in the Company's consolidated financial statements. |
Reclassification, Policy [Policy Text Block] | Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation. |
Restricted Cash, Policy [Policy Text Block] | Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $5 million related to the Letter of Credit Facility, and $1 million related to cash collateral for other corporate purposes at June 30, 2016 . |
Summary of Significant Accoun24
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Statement [Abstract] | |
Other (income) expense, net [Table Text Block] | Other (Income) Expense, Net: Other (income) expense, net includes transformation initiatives, transaction hedging and exchange, and integration costs. Other (income) expense, net consists of the following: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Transformation initiatives $ 1 $ 13 $ 3 $ 18 Transaction hedging and exchange (gains) losses — (22 ) 1 (19 ) Integration costs — 5 1 9 Recoverable taxes (1 ) — (1 ) — $ — $ (4 ) $ 4 $ 8 |
Schedule of Product Warranty Liability [Table Text Block] | he following table provides a reconciliation of changes in the product warranty and recall claims liability: Six Months Ended June 30 2016 2015 (Dollars in Millions) Beginning balance $ 38 $ 20 Accruals for products shipped 8 8 Changes in estimates 1 — Specific cause actions (1 ) 8 Recoverable warranty/recalls (1 ) 5 Foreign currency 1 (3 ) Settlements (9 ) (3 ) Ending balance $ 37 $ 35 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Cash and non-cash items for certain operating and investing activities related to discontinued operations for the six months ended June 30, 2016 and 2015 are as follows: Six Months Ended 2016 2015 (Dollars in Millions) Depreciation and amortization $ — $ 85 Asset impairments and losses on divestiture $ 2 $ 16 Capital expenditures $ 2 $ 81 Discontinued operations are summarized as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Sales $ 11 $ 933 $ 20 $ 2,168 Cost of sales 15 862 28 2,000 Gross margin (4 ) 71 (8 ) 168 Selling, general and administrative expenses 2 35 2 75 Loss (gain) on Climate Transaction 2 (2,332 ) 2 (2,332 ) Loss and impairment on Interiors Divestiture 1 2 2 16 Restructuring expense — 1 — 2 Interest expense, net — 1 — 2 Equity in net income of non-consolidated affiliates — 3 — 6 Other (income) expense, net 1 (1 ) 1 5 (Loss) income from discontinued operations before income taxes (10 ) 2,368 (15 ) 2,406 (Benefit) Provision for income taxes (1 ) 209 7 201 (Loss) income from discontinued operations, net of tax (9 ) 2,159 (22 ) 2,205 Net income attributable to non-controlling interests — 9 — 24 Net (loss) income from discontinued operations attributable to Visteon $ (9 ) $ 2,150 $ (22 ) $ 2,181 During the six months ended June 30, 2016, the Company recorded currency impacts of $8 million in connection with the Korean capital gains withholding tax recovered during the first quarter of 2016. During the three month period ended June 30, 2015, the Company received $3.4 billion of gross proceeds and recorded a $2.3 billion in pre-tax gain associated with the Climate Transaction. A summary of the gain is summarized below (dollars in millions): Gross proceeds (1) $ 3,423 Korea withholding tax (2) (377 ) Professional fees (3) (20 ) Korea security transaction tax (4) (17 ) Divested cash balances (5) (345 ) Net cash provided from investing activities 2,664 Net assets divested, excluding cash balances (5) (557 ) Information technology separation and service obligations (6) (53 ) Employee related charges (7) (45 ) Electronics business repurchase obligation (8) (50 ) Professional fees (3) (4 ) Korea withholding tax recoverable (2) 377 Net gain on Climate Transaction $ 2,332 (1) Gross proceeds of $3,423 million were received in connection with the Climate Transaction, translated at a spot rate of 1121.5 KRW to USD on June 9, 2015. Impacts of related hedging activities and exchange on proceeds conversion into USD are included in the Company's consolidated statements of comprehensive income as "Other (income) expense, net" for the three and six month periods ended June 30, 2015. (2) In connection with the transaction, the Company recorded a tax recoverable of $377 million for Korean capital gains tax withheld by the Purchasers and paid to the Korean government. This amount reduced proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. In January 2016, the Company recovered the entire amount of the Korean capital gains withholding tax, adjusted for currency and exchange impacts, of $ 356 million . (3) Professional fees of $24 million , representing fees paid to financial advisors, were based on a percentage of the gross proceeds, partially offset by previously paid retainer fees of $4 million , for a net payment of $20 million reducing proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. (4) Security transaction taxes of $17 million were remitted to the Korean government as of the transaction close, reducing proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. (5) Net assets of $902 million , including assets, liabilities, accumulated other comprehensive income and non-controlling interests, were divested in connection with the Climate Transaction. Divested assets included $345 million of cash balances, reflected as a reduction of transaction proceeds classified as net cash provided from investing activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. (6) In connection with the Climate Transaction, the Company has entered an agreement pursuant to which Visteon will provide information technology ongoing and separation services for HVCC to fully operate as an independent entity with estimated costs of approximately $53 million . The information technology liability is included in the Company's consolidated balance sheets as "Other current liabilities" as of June 30, 2016 and December 31, 2015. (7) Employee related charges of $45 million include bonus payments, the Company's assumption of incentive plan liabilities, and impacts of employment change in control provisions. Bonus payments of $30 million are classified in the Company's net cash provided from operating activities within the Company's consolidated statements of cash flows for the six months ended June 30, 2015. Amounts remaining to be paid are included in the Company's consolidated balance sheets as "Accrued employee liabilities" as of June 30, 2016 and December 31, 2015. (8) In connection with the Climate Transaction, the Company has entered an agreement to purchase certain electronics operations located in India, expected to close in 2016 after legal separation and regulatory approvals are met. The Company has recorded a repurchase obligation of $50 million , representing the estimated purchase price of the subject business. The Company continues to consolidate the business, with net assets of approximately $22 million as of June 30, 2016, based on the Company’s continued controlling financial interest. The Company’s controlling financial interest was evaluated based on continued operating control and obligation to fund losses or benefit from earnings. The business is included in a legal entity currently owned by HVCC and therefore the Electronics business assets are not available for general corporate purposes. The repurchase obligation is included in the Company’s consolidated balance sheets as “Other current liabilities” as of June 30, 2016 and December 31, 2015. |
Disposal group, including discontinued operations, held for sale table [Table Text Block] | Held for sale balances, classified as "Other current assets" and "Other current liabilities" on the consolidated balance sheets are summarized as follows: June 30 December 31 2016 2015 (Dollars in Millions) ASSETS HELD FOR SALE Cash and equivalents $ 1 $ 1 Accounts receivable, net 12 9 Inventories, net 5 4 Other current assets 3 3 Total current assets held for sale 21 17 Total assets held for sale $ 21 $ 17 LIABILITIES HELD FOR SALE Accounts payable $ 8 $ 6 Employee benefits 3 2 Other current liabilities — 1 Total current liabilities held for sale 11 9 Total liabilities held for sale $ 11 $ 9 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | The Company’s consolidated restructuring reserves and related activity are summarized below, including amounts associated with discontinued operations. Electronics Other Total (Dollars in Millions) December 31, 2015 $ 33 $ 5 $ 38 Expense 11 — 11 Utilization (13 ) — (13 ) Reversals (1 ) — (1 ) Foreign currency 1 — 1 March 31, 2016 31 5 36 Expense 1 7 8 Utilization (5 ) — (5 ) Reversals (1 ) — (1 ) Foreign currency (1 ) — (1 ) June 30, 2016 $ 25 $ 12 $ 37 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following components: June 30 December 31 2016 2015 (Dollars in Millions) Raw materials $ 97 $ 90 Work-in-process 45 53 Finished products 45 44 $ 187 $ 187 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets are comprised of the following components: June 30 December 31 2016 2015 (Dollars in Millions) Recoverable taxes $ 59 $ 425 Prepaid assets and deposits 33 28 Joint venture receivables 25 44 Notes receivable 23 21 Assets held for sale 21 17 Contractually reimbursable engineering costs 17 34 Foreign currency hedges 7 6 Other 4 6 $ 189 $ 581 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other non-current assets are comprised of the following components: June 30 December 31 2016 2015 (Dollars in Millions) Deferred tax assets $ 36 $ 34 Long term notes receivable 25 13 Recoverable taxes 24 20 Contractually reimbursable engineering costs 4 4 Other 21 17 $ 110 $ 88 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment [Table Text Block] | Property and equipment, net consists of the following: June 30 December 31 2016 2015 (Dollars in Millions) Land $ 17 $ 15 Buildings and improvements 66 64 Machinery, equipment and other 407 353 Construction in progress 37 75 527 507 Accumulated depreciation (201 ) (170 ) 326 337 Product tooling, net of amortization 16 14 $ 342 $ 351 |
Property, Plant and Equipment [Line Items] | |
Schedule of Depreciation and Amortization [Table Text Block] | Depreciation and amortization expenses for property and equipment, excluding discontinued operations, are summarized as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Depreciation $ 17 $ 17 $ 33 $ 32 Amortization — 1 1 2 $ 17 $ 18 $ 34 $ 34 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Intangible assets, net at June 30, 2016 and December 31, 2015 , are comprised of the following: June 30, 2016 December 31, 2015 Estimated Weighted Average Useful Life (years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (Dollars in Millions) Definite-Lived: Developed technology 7 $ 39 $ 22 $ 17 $ 39 $ 20 $ 19 Customer related 10 82 22 60 84 17 67 Other 32 8 1 7 8 1 7 Subtotal 129 45 84 131 38 93 Indefinite-Lived: Goodwill 39 — 39 40 — 40 Total $ 168 $ 45 $ 123 $ 171 $ 38 $ 133 The Company recorded approximately $3 million and $7 million of amortization expense related to definite-lived intangible assets for the three and six months ended June 30, 2016 . The Company currently estimates annual amortization expense to be $14 million for 2016 , $12 million each year from 2017 through 2019 , and $10 million for 2020 . Indefinite-lived intangible assets are not amortized but are tested for impairment at least annually, or earlier when events and circumstances indicate that it is more likely than not that such assets have been impaired. A roll-forward of the carrying amounts of intangible assets is presented below: Definite-lived intangibles Indefinite-lived intangibles Developed Technology Customer Related Other Goodwill Total (Dollars in Millions) December 31, 2015 $ 19 $ 67 $ 7 $ 40 $ 133 Foreign currency — (2 ) — (1 ) (3 ) Amortization (2 ) (5 ) — — (7 ) June 30, 2016 $ 17 $ 60 $ 7 $ 39 $ 123 |
Goodwill and Intangible Assets Disclosure [Text Block] | Intangible assets, net at June 30, 2016 and December 31, 2015 , are comprised of the following: June 30, 2016 December 31, 2015 Estimated Weighted Average Useful Life (years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (Dollars in Millions) Definite-Lived: Developed technology 7 $ 39 $ 22 $ 17 $ 39 $ 20 $ 19 Customer related 10 82 22 60 84 17 67 Other 32 8 1 7 8 1 7 Subtotal 129 45 84 131 38 93 Indefinite-Lived: Goodwill 39 — 39 40 — 40 Total $ 168 $ 45 $ 123 $ 171 $ 38 $ 133 The Company recorded approximately $3 million and $7 million of amortization expense related to definite-lived intangible assets for the three and six months ended June 30, 2016 . The Company currently estimates annual amortization expense to be $14 million for 2016 , $12 million each year from 2017 through 2019 , and $10 million for 2020 . Indefinite-lived intangible assets are not amortized but are tested for impairment at least annually, or earlier when events and circumstances indicate that it is more likely than not that such assets have been impaired. A roll-forward of the carrying amounts of intangible assets is presented below: Definite-lived intangibles Indefinite-lived intangibles Developed Technology Customer Related Other Goodwill Total (Dollars in Millions) December 31, 2015 $ 19 $ 67 $ 7 $ 40 $ 133 Foreign currency — (2 ) — (1 ) (3 ) Amortization (2 ) (5 ) — — (7 ) June 30, 2016 $ 17 $ 60 $ 7 $ 39 $ 123 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities [Abstract] | |
Other Current Liabilities [Table Text Block] | Other current liabilities are summarized as follows: June 30 December 31 2016 2015 (Dollars in Millions) Electronics operations repurchase commitment $ 50 $ 50 Restructuring reserves 37 38 Contribution payable 33 33 Rent and royalties 25 33 Product warranty and recall accruals 23 26 Joint venture payables 17 18 Information technology separation and service obligations 14 36 Deferred income 13 11 Liabilities held for sale 11 9 Income taxes payable 9 63 Non-income taxes payable 8 20 Foreign currency hedges 5 1 Other 34 32 $ 279 $ 370 |
Other Noncurrent Liabilities [Table Text Block] | Other non-current liabilities are summarized as follows: June 30 December 31 2016 2015 (Dollars in Millions) Income tax reserves $ 27 $ 25 Deferred income 16 15 Product warranty and recall accruals 14 12 Non-income tax reserves 10 10 Other 14 13 $ 81 $ 75 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The Company’s short and long-term debt consists of the following: June 30 December 31 2016 2015 (Dollars in Millions) Short-Term Debt: Current portion of long-term debt $ 1 $ 3 Short-term borrowings 24 34 $ 25 $ 37 Long-Term Debt: Term debt facility $ 345 $ 345 Other 2 1 $ 347 $ 346 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Retirement Plan expenses [Table Text Block] | The Company's net periodic benefit costs for all defined benefit plans for the three month periods ended June 30, 2016 and 2015 were as follows: U.S. Plans Non-U.S. Plans 2016 2015 2016 2015 (Dollars in Millions) Costs Recognized in Income: Service cost $ — $ — $ 1 $ 1 Interest cost 7 9 3 4 Expected return on plan assets (11 ) (10 ) (3 ) (4 ) Settlements and curtailments — — 1 — Amortization of losses and other — — — 3 Net pension (income) expense $ (4 ) $ (1 ) $ 2 $ 4 The Company's net periodic benefit costs for all defined benefit plans for the six month periods ended June 30, 2016 and 2015 were as follows: U.S. Plans Non-U.S. Plans 2016 2015 2016 2015 (Dollars in Millions) Costs Recognized in Income: Service cost $ — $ — $ 2 $ 3 Interest cost 14 17 5 9 Expected return on plan assets (21 ) (21 ) (5 ) (9 ) Settlements and curtailments — — 1 — Amortization of losses and other — — — 4 Net pension (income) expense $ (7 ) $ (4 ) $ 3 $ 7 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Unrecognized Tax Benefits [Table Text Block] | Six Months Ended (Dollars in Millions) Beginning balance $ 37 Tax positions related to current period: Additions 1 Tax positions related to prior periods: Additions 1 Settlements with tax authorities (7 ) Ending balance $ 32 |
Stock-holders' Equity and Non-c
Stock-holders' Equity and Non-controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Changes in equity for the three months ended June 30, 2016 and 2015 are as follows: 2016 2015 Visteon NCI Total Visteon NCI Total (Dollars in Millions) Three Months Ended June 30 Beginning balance $ 586 $ 146 $ 732 $ 883 $ 940 $ 1,823 Net income from continuing operations 35 4 39 58 7 65 Net (loss) income from discontinued operations (9 ) — (9 ) 2,150 9 2,159 Net income 26 4 30 2,208 16 2,224 Other comprehensive income (loss) Foreign currency translation adjustments — (2 ) (2 ) 67 — 67 Benefit plans 1 — 1 17 — 17 Unrealized hedging gain (loss) — — — (4 ) (1 ) (5 ) Total other comprehensive income (loss) 1 (2 ) (1 ) 80 (1 ) 79 Stock-based compensation, net 3 — 3 11 — 11 Warrant exercises — — — 6 — 6 Share repurchase — — — (500 ) — (500 ) Business (divestitures) acquisitions — — — — (785 ) (785 ) Dividends to non-controlling interests — — — — (8 ) (8 ) Ending balance $ 616 $ 148 $ 764 $ 2,688 $ 162 $ 2,850 Changes in equity for the six months ended June 30, 2016 and 2015 are as follows: 2016 2015 Visteon NCI Total Visteon NCI Total (Dollars in Millions) Six Months Ended June 30 Beginning balance $ 1,057 $ 142 $ 1,199 $ 865 $ 956 $ 1,821 Net income from continuing operations 67 8 75 77 12 89 Net (loss) income from discontinued operations (22 ) — (22 ) 2,181 24 2,205 Net income 45 8 53 2,258 36 2,294 Other comprehensive income (loss) Foreign currency translation adjustments 23 (2 ) 21 — (12 ) (12 ) Benefit plans 1 — 1 33 1 34 Unrealized hedging gain (loss) (4 ) — (4 ) 5 2 7 Total other comprehensive income (loss) 20 (2 ) 18 38 (9 ) 29 Stock-based compensation, net (6 ) — (6 ) 12 — 12 Warrant exercises — — — 15 — 15 Share repurchase (500 ) — (500 ) (500 ) — (500 ) Business (divestitures) acquisitions — — — — (785 ) (785 ) Dividends to non-controlling interests — — — — (36 ) (36 ) Ending balance $ 616 $ 148 $ 764 $ 2,688 $ 162 $ 2,850 |
Schedule of Non-controlling Interests [Table Text Block] | Non-controlling interests in the Visteon Corporation economic entity are as follows: June 30 December 31 2016 2015 (Dollars in Millions) Yanfeng Visteon Automotive Electronics Co., Ltd. ("YFVE") $ 104 $ 100 Shanghai Visteon Automotive Electronics, Co., Ltd. 43 41 Other 1 1 $ 148 $ 142 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in Accumulated other comprehensive (loss) income (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Changes in AOCI: Beginning balance $ (171 ) $ (341 ) $ (190 ) $ (299 ) Other comprehensive income (loss) before reclassification, net of tax 1 (4 ) 22 (42 ) Amounts reclassified from AOCI — — (2 ) (4 ) Climate divestiture — 84 — 84 Ending balance $ (170 ) $ (261 ) $ (170 ) $ (261 ) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (132 ) $ (205 ) $ (155 ) $ (138 ) Other comprehensive income before reclassification, net of tax (a) — 4 23 (63 ) Climate divestiture (b) — 63 — 63 Ending balance (132 ) (138 ) (132 ) (138 ) Benefit plans Beginning balance (36 ) (140 ) (36 ) (156 ) Other comprehensive income before reclassification, net of tax (a) — (6 ) — 8 Amounts reclassified from AOCI (c) 1 3 1 5 Climate divestiture (b) — 20 — 20 Ending balance (35 ) (123 ) (35 ) (123 ) Unrealized hedging (loss) gain Beginning balance (3 ) 4 1 (5 ) Other comprehensive income (loss) before reclassification, net of tax (d) 1 (2 ) (1 ) 13 Amounts reclassified from AOCI (e) (1 ) (3 ) (3 ) (9 ) Climate divestiture (b) — 1 — 1 Ending balance (3 ) — (3 ) — Total AOCI $ (170 ) $ (261 ) $ (170 ) $ (261 ) (a) There were no income tax effects for the three and six month periods ending June 30, 2016 and 2015, due to the recording of valuation allowance. (b) Amounts are included in (Loss)income from discontinued operations, net of tax, on the consolidated statements of comprehensive income. (c) Amount included in the computation of net periodic pension cost. (See Note 11, "Employee Benefit Plans" for additional details.) (d) Net tax expense of $1 million and tax benefit of $1 million are related to unrealized hedging (loss) gain for the three months ended June 30, 2016 and 2015 , respectively. Net tax expense of $0 million and $2 million are related to unrealized hedging gain for the six months ended June 30, 2016 and 2015, respectively. (e) Amount is included in Cost of sales in the consolidated statements of comprehensive income. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The table below provides details underlying the calculations of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In Millions, Except Per Share Amounts) Numerator: Net income from continuing operations attributable to Visteon $ 35 $ 58 $ 67 $ 77 (Loss) income from discontinued operations, net of tax (9 ) 2,150 (22 ) 2,181 Net income attributable to Visteon $ 26 $ 2,208 $ 45 $ 2,258 Denominator: Average common stock outstanding - basic 34.0 43.4 36.3 43.8 Dilutive effect of performance based share units and other 0.4 1.0 0.4 1.1 Diluted shares 34.4 44.4 36.7 44.9 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon: Continuing operations $ 1.03 $ 1.34 $ 1.85 $ 1.76 Discontinued operations (0.26 ) 49.54 (0.61 ) 49.79 $ 0.77 $ 50.88 $ 1.24 $ 51.55 Diluted earnings (loss) per share attributable to Visteon: Continuing operations $ 1.02 $ 1.31 $ 1.83 $ 1.71 Discontinued operations (0.26 ) 48.42 (0.60 ) 48.58 $ 0.76 $ 49.73 $ 1.23 $ 50.29 |
Fair Value Measurements and F37
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The Company presents its derivative positions and any related material collateral under master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. Derivative financial instruments designated and non-designated as hedging instruments are included in the Company’s consolidated balance sheets at June 30, 2016 and December 31, 2015 , as follows: Gross Amount Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position June 30 December 31 June 30 December 31 June 30 December 31 2016 2015 2016 2015 2016 2015 (Dollars in Millions) Other Current Assets: Designated $ 7 $ 7 $ 1 $ 1 $ 6 $ 6 Non-designated 1 — — — 1 — Foreign Currency Derivatives $ 8 $ 7 $ 1 $ 1 $ 7 $ 6 Other Current Liabilities: Designated-Interest Rate Swaps $ 5 $ 1 $ — $ — $ 5 $ 1 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Gains and losses on derivative financial instruments for the three and six months ended June 30, 2016 and 2015 are as follows: Recorded (Loss) Income into AOCI, net of tax Reclassified from AOCI into (income) Loss Recorded in (income) Loss 2016 2015 2016 2015 2016 2015 (Dollars in Millions) Three Months Ended June 30 Foreign currency risk - Cost of sales: Cash flow hedges $ 2 $ (2 ) $ (1 ) $ (3 ) $ — $ — Net investment hedges 4 1 — — — — Non-designated cash flow hedges — — — — (1 ) (2 ) Interest rate risk: Interest rate swap $ (1 ) $ — $ — $ — $ — $ — Foreign currency risk - Other (income) expense, net: KRW option and forward contracts — — — (8 ) — 2 $ 5 $ (1 ) $ (1 ) $ (11 ) $ (1 ) $ — Six Months Ended June 30 Foreign currency risk - Cost of sales Cash flow hedges $ 3 $ 13 $ (3 ) $ (9 ) $ — $ — Net investment hedges (2 ) 1 — — — — Non-designated cash flow hedges — — — — (1 ) (3 ) Interest rate risk: Interest rate swap (4 ) — — — — — Foreign currency risk - Other income : KRW option and forward contracts — (4 ) — (8 ) — 5 $ (3 ) $ 10 $ (3 ) $ (17 ) $ (1 ) $ 2 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Segment Sales Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Electronics $ 762 $ 780 $ 1,555 $ 1,561 Other 11 42 20 86 Eliminations — (10 ) — (19 ) Total consolidated sales $ 773 $ 812 $ 1,575 $ 1,628 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment Adjusted EBITDA is summarized below: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Electronics $ 79 $ 60 $ 173 $ 144 Other (2 ) — (7 ) (6 ) Adjusted EBITDA $ 77 $ 60 $ 166 $ 138 |
Reconciliation of Adjusted EBITDA to Net Income Attributable to the Company [Table Text Block] | The reconciliation of Adjusted EBITDA to net income attributable to Visteon is as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (Dollars in Millions) Adjusted EBITDA $ 77 $ 60 $ 166 $ 138 Depreciation and amortization 20 21 41 42 Restructuring expense 7 12 17 15 Interest expense, net 3 6 5 11 Loss on debt extinguishment — 5 — 5 Equity in net income of non-consolidated affiliates (3 ) (12 ) (3 ) (11 ) Gain on sale of non-consolidated affiliates — (62 ) — (62 ) Other (income) expense, net — (4 ) 4 8 Provision for income taxes 9 24 22 33 Loss (income) from discontinued operations, net of tax 9 (2,159 ) 22 (2,205 ) Net income attributable to non-controlling interests 4 16 8 36 Non-cash, stock-based compensation expense 2 2 4 5 Other — 3 1 3 Net income attributable to Visteon Corporation $ 26 $ 2,208 $ 45 $ 2,258 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total Assets June 30 December 31 2016 2015 (Dollars in Millions) Electronics $ 2,306 $ 4,649 Other 38 32 Total consolidated assets $ 2,344 $ 4,681 |
Description of Business (Detail
Description of Business (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)₩ / shares | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Disposal Group, Including Discontinued Operation, Assets of Disposal Group | $ 21 | $ 17 | $ 21 | $ 17 | ||||||
Disposal Group, Including Discontinued Operation, Liabilities of Disposal Group | 11 | 9 | 11 | 9 | ||||||
Other Commitment | $ 33 | 33 | $ 33 | 33 | ||||||
Entity Number of Employees | 11,000 | 11,000 | ||||||||
Gross Proceeds from Climate Transaction | $ 3,423 | |||||||||
Proceeds from Climate Transaction | $ 0 | 2,664 | ||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (2) | 2,332 | ||||||||
HVCC [Member] | ||||||||||
Disposal Group, Including Discontinued Operation, Assets of Disposal Group | $ 902 | $ 902 | 902 | |||||||
Gross Proceeds from Climate Transaction | 3,400 | |||||||||
Proceeds from Climate Transaction | 2,664 | |||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 2 | $ 2,332 | $ (2,332) | 2 | $ (2,332) | |||||
SOUTH AFRICA | ||||||||||
Sales Revenue, Goods, Gross | 9 | |||||||||
Argentina and Brazil Interiors Operations [Member] | ||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (20) | |||||||||
Germany Interiors Operations [Member] | ||||||||||
Payment associated with business disposal | 141 | |||||||||
Disposal Group, Including Discontinued Operation, Assets of Disposal Group | 27 | 27 | ||||||||
Disposal Group, Including Discontinued Operation, Liabilities of Disposal Group | $ 198 | $ 198 | ||||||||
Korea (South), Won | ||||||||||
Business Divestiture, Per Share Price | ₩ / shares | $ 52,000 | |||||||||
Subsequent Event [Member] | SOUTH AFRICA | ||||||||||
Gross Proceeds from Climate Transaction | $ 2 | |||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 12 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | |
Debt Issuance Cost | $ 1 | ||||||
Due to Related Parties, Noncurrent | $ 13 | $ 13 | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 90 | 90 | |||||
Transformation Costs | 1 | $ 13 | 3 | $ 18 | |||
Foreign Currency Transaction Gain (Loss), Realized | 1 | ||||||
Short-term Investments | 0 | 0 | 47 | ||||
Integration costs | 0 | 5 | 1 | 9 | |||
Other expense, net | 0 | (4) | 4 | 8 | |||
Restricted cash | 6 | 6 | 8 | ||||
Equity in net income of (loss) non-consolidated affiliates | 3 | 12 | 3 | 11 | |||
Investments in non-consolidated affiliates | 58 | 58 | 56 | ||||
Equity Method Investments | 47 | 47 | 45 | ||||
Cost Method Investments | 11 | 11 | 0 | ||||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||||
Product Warranty Accrual, Beginning Balance | $ 37 | 38 | 20 | $ 20 | 20 | ||
Accruals for products shipped | 8 | 8 | |||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | 1 | 0 | |||||
Product warranty accrual, recoverable warranty or recalls | (1) | 5 | |||||
Product warranty accrual, specific action increase (decrease) | (1) | (8) | |||||
Foreign currency translation | 1 | (3) | |||||
Settlements | (9) | (3) | |||||
Product Warranty Accrual, Ending Balance | 37 | 35 | 37 | 35 | 38 | ||
Due from Related Parties, Current | 18 | 18 | |||||
Due from Related Parties, Noncurrent | 12 | 12 | 10 | ||||
Guarantor Obligations, Current Carrying Value | 26 | 26 | |||||
Provision of losses on recoverable taxes | (1) | 0 | (1) | 0 | |||
Cash Collateral for Letter of Credit Facility [Member] | |||||||
Restricted cash | 5 | 5 | |||||
Cash Collateral For Other Corporate Purposes [Member] | |||||||
Restricted cash | $ 1 | $ 1 | |||||
YFVIC [Member] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||||
Due to Related Parties, Noncurrent | 17 | ||||||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||||
Due from Related Parties, Current | 36 | ||||||
Due from Related Parties, Noncurrent | $ 4 | $ 4 | |||||
Yanfeng Visteon Electronics (China) Investment Company [Member] | |||||||
Investments in non-consolidated affiliates | 24 | 24 | $ 23 | ||||
YFVE [Member] | |||||||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||||
Due from Related Parties, Noncurrent | 22 | 22 | |||||
KRW option contract [Member] | |||||||
Derivative, Gain (Loss) on Derivative, Net | 6 | $ 3 | |||||
Subsequent Event [Member] | |||||||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||||
Proceeds from Sale of Investment Projects | 11 | ||||||
Gain on Sale of Investments | $ 5 | ||||||
HVCC [Member] | |||||||
Foreign Currency Transaction Gain (Loss), Realized | $ 0 | $ 1 | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (22) | $ (19) |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jan. 31, 2016USD ($) | Jun. 09, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Payments for Restructuring | $ 5 | $ 13 | ||||||||
Restructuring Reserve, Accrual Adjustment | 1 | 1 | $ 2 | |||||||
Restructuring Reserve, Current | 37 | 36 | $ 38 | 37 | ||||||
Foreign currency | (1) | 1 | ||||||||
Proceeds from Divestiture of Businesses | $ 3,423 | |||||||||
Security transaction taxes related to Climate Transaction | (17) | |||||||||
Cash Divested from Deconsolidation | (345) | |||||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 0 | 2,664 | ||||||||
Net assets divested, excluding cash balance | (557) | |||||||||
Information technology separation and service obligations | 14 | 36 | $ (53) | 14 | (53) | |||||
Employee charges, including bonuses, related to Climate Transaction | 30 | |||||||||
Electronics operations repurchase commitment | 50 | 50 | (50) | 50 | (50) | |||||
Disposal Group, Including Discontinued Operation, Assets | 21 | 17 | 21 | |||||||
Korean Capital Gains Withholding Tax | (356) | (364) | (377) | (377) | $ (356) | |||||
Sales | 11 | 933 | 20 | 2,168 | ||||||
Cost of sales | 15 | 862 | 28 | 2,000 | ||||||
Gross margin | (4) | 71 | (8) | 168 | ||||||
Selling, general and administrative expenses | 2 | 35 | 2 | 75 | ||||||
Gain (loss) on Climate Transaction & Interiors Divestiture | (2) | 2,332 | ||||||||
Restructuring expenses | 0 | 1 | 0 | 2 | ||||||
Interest expense, net | 0 | 1 | 0 | 2 | ||||||
Equity in net income of non-consolidated affiliates | 0 | 3 | 0 | 6 | ||||||
Other (income) expense, net | 1 | (1) | 1 | 5 | ||||||
Income (loss) from discontinued operations before income taxes | (10) | 2,368 | (15) | 2,406 | ||||||
Provision for income taxes | (1) | 209 | 7 | 201 | ||||||
(Loss) income from discontinued operations, net of tax | (9) | 2,159 | (22) | 2,205 | ||||||
Net income attributable to non-controlling interests | 0 | 9 | 0 | 24 | ||||||
Cash and equivalents | 1 | 1 | 1 | |||||||
Accounts receivables, net | 12 | 9 | 12 | |||||||
Inventories, net | 5 | 4 | 5 | |||||||
Other current assets | 3 | 3 | 3 | |||||||
Total current assets held for sale | 21 | 17 | 21 | |||||||
Accounts payable | 8 | 6 | 8 | |||||||
Employee benefits | 3 | 2 | 3 | |||||||
Other current liabilities | 0 | 1 | 0 | |||||||
Total current liabilities held for sale | 11 | 9 | 11 | |||||||
Total liabilities held for sale | 11 | 9 | 11 | |||||||
Depreciation and Amortization | 0 | 85 | ||||||||
Capital expenditures | 2 | 81 | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (9) | 2,150 | (22) | 2,181 | ||||||
Restructuring Charges | 8 | 11 | ||||||||
HVCC [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from Divestiture of Businesses | 3,400 | |||||||||
Professional Fees | (20) | $ (4) | 24 | |||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 2,664 | |||||||||
Employee charges, including bonuses, related to Climate Transaction | (45) | |||||||||
Disposal Group, Including Discontinued Operation, Assets | 902 | 902 | ||||||||
Gain (loss) on Climate Transaction & Interiors Divestiture | 2 | $ 2,332 | (2,332) | 2 | (2,332) | |||||
Interiors [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on Climate Transaction & Interiors Divestiture | (1) | (2) | ||||||||
Korea (South), Won | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Foreign Currency Transactions, Description | 1,121.5 | |||||||||
Electronics-related operations within a legal entity in India subject to the Climate Transaction [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net Assets | 22 | 22 | ||||||||
Discontinued Operations [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Asset Impairment Charges | 2 | 16 | ||||||||
Electronics [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Payments for Restructuring | 5 | 13 | ||||||||
Restructuring Reserve, Accrual Adjustment | 1 | 1 | ||||||||
Restructuring Reserve, Current | 25 | 31 | 33 | 25 | ||||||
Foreign currency | (1) | 1 | ||||||||
Restructuring Charges | 1 | 11 | ||||||||
Other Segments [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Payments for Restructuring | 0 | 0 | ||||||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||||||||
Restructuring Reserve, Current | 12 | 5 | 5 | 12 | ||||||
Foreign currency | 0 | $ 0 | ||||||||
Restructuring Charges | 7 | |||||||||
Other Segments [Member] | Discontinued Operations [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Restructuring charges, including discontinued operations | 1 | 2 | ||||||||
2016 Electronics Restructuring Program [Member] | Electronics [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Restructuring Reserve, Current | 10 | 10 | ||||||||
Restructuring Charges | 1 | 12 | ||||||||
2015 Electronics Restructuring Program [Member] [Member] | Electronics [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Restructuring Reserve, Current | 9 | 9 | ||||||||
Restructuring Charges | $ 12 | |||||||||
2014 Electronics Restructuring Program [Member] | Electronics [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Restructuring Reserve, Current | $ 6 | $ 6 | ||||||||
Restructuring Charges | $ 9 | $ 12 |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 09, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges, net of reversals | $ 7 | $ 12 | $ 17 | $ 15 | |||
Restructuring expense | 8 | $ 11 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Current, Beginning Balance | 36 | 38 | 38 | ||||
Utilization | (5) | (13) | |||||
Foreign currency | (1) | 1 | |||||
Restructuring Reserve, Accrual Adjustment | (1) | (1) | (2) | ||||
Restructuring Reserve, Current, Ending Balance | 37 | 36 | $ 38 | 37 | |||
Electronics [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expense | 1 | 11 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Current, Beginning Balance | 31 | 33 | 33 | ||||
Utilization | (5) | (13) | |||||
Foreign currency | (1) | 1 | |||||
Restructuring Reserve, Accrual Adjustment | (1) | (1) | |||||
Restructuring Reserve, Current, Ending Balance | 25 | 31 | 33 | 25 | |||
Other Segments [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expense | 7 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Current, Beginning Balance | 5 | 5 | 5 | ||||
Utilization | 0 | 0 | |||||
Foreign currency | 0 | 0 | |||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |||||
Restructuring Reserve, Current, Ending Balance | 12 | $ 5 | 5 | 12 | |||
2016 Electronics Restructuring Program [Member] | Electronics [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expense | 1 | 12 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Current, Ending Balance | 10 | $ 10 | |||||
Restructuring and Related Cost, Number of Positions Eliminated | 100 | ||||||
2015 Electronics Restructuring Program [Member] [Member] | Electronics [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expense | $ 12 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Current, Ending Balance | 9 | $ 9 | |||||
Restructuring and Related Cost, Number of Positions Eliminated | 100 | ||||||
2014 Electronics Restructuring Program [Member] | Electronics [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expense | $ 9 | 12 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Current, Ending Balance | $ 6 | 6 | |||||
Restructuring and Related Cost, Number of Positions Eliminated | 420 | ||||||
2013 Restructuring Plan [Member] | Electronics [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expense | 3 | ||||||
2016 Other Restructuring Program [Member] [Member] | Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expense | $ 7 | ||||||
Discontinued Operations [Member] | Other Segments [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expense | $ 1 | 2 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Expense | $ 1 | $ 2 | |||||
Korea (South), Won | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Foreign Currency Exchange Rate, Translation | 1,121.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory, Raw Materials, Net of Reserves | $ 97 | $ 90 |
Inventory, Work in Process, Net of Reserves | 45 | 53 |
Inventories, net | 187 | 187 |
Inventory, Finished Goods, Net of Reserves | $ 45 | $ 44 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Other Assets [Abstract] | |||||
Recoverable Taxes | $ 59 | $ 425 | |||
Prepaid assets and deposits | 33 | 28 | |||
Joint venture receivables | 25 | 44 | |||
Notes Receivable, Related Parties, Current | 23 | 21 | |||
Disposal Group, Including Discontinued Operation, Assets, Current | 21 | 17 | |||
Contractual reimbursable engineering costs | 17 | 34 | |||
Hedging Assets, Current | 7 | 6 | |||
Other | 4 | 6 | |||
Other Assets, Current | 189 | 581 | |||
Deferred tax assets | 36 | 34 | |||
Notes Receivable, Related Parties, Noncurrent | 25 | 13 | |||
Recoverable taxes, non current | 24 | 20 | |||
Contractually reimbursable engineering costs | 4 | 4 | |||
Other | 21 | 17 | |||
Other Assets, Noncurrent | 110 | 88 | |||
Korean Capital Gains Withholding Tax | $ 356 | $ 356 | $ 364 | $ 377 | |
Reimbursement for engineering costs in year one | 12 | ||||
Reimbursement for engineering costs expected in year two | 5 | ||||
Reimbursement for engineering costs expected in year three and after | $ 4 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Land | $ 17 | $ 17 | $ 15 | ||
Buildings and improvements | 66 | 66 | 64 | ||
Machinery, equipment and other | 407 | 407 | 353 | ||
Construction in progress | 37 | 37 | 75 | ||
Total property and equipment | 527 | 527 | 507 | ||
Accumulated depreciation | (201) | (201) | (170) | ||
Property and equipment, net, before product tooling | 326 | 326 | 337 | ||
Property and equipment, net | 342 | 342 | 351 | ||
Depreciation | 17 | $ 17 | 33 | $ 32 | |
Depreciation and Amortization Expense | 17 | 18 | $ 34 | 34 | |
Buildings and improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 40 years | ||||
Product tooling [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, net | $ 16 | $ 16 | $ 14 | ||
Amortization | $ 1 | $ 1 | $ 2 | ||
Minimum [Member] | Machinery and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Maximum [Member] | Machinery and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 15 years |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets Including Goodwill Translation Adjustment | $ 3 | ||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | $ 129 | 129 | $ 131 |
Finite-Lived Intangible Assets, Accumulated Amortization | 45 | 45 | 38 |
Net Carrying Value | 84 | 84 | 93 |
Goodwill | 40 | ||
Goodwill and Indefinite-lived Intangible Assets, Net | 39 | 39 | 40 |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Goodwill, Gross | 39 | 39 | 40 |
Intangible Assets, Gross (Including Goodwill) | 168 | 168 | 171 |
Intangible Assets Net Including Goodwill | 123 | 123 | 133 |
Amortization expense | (3) | (7) | |
Future Amortization Expense, Year One | 14 | 14 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 12 | 12 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 10 | $ 10 | |
Developed Technology Rights [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Finite-Lived Intangible Assets, Gross | 39 | $ 39 | 39 |
Finite-Lived Intangible Assets, Accumulated Amortization | 22 | 22 | 20 |
Net Carrying Value | 17 | 17 | 19 |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | (2) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 0 | ||
Customer Relationships [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Finite-Lived Intangible Assets, Gross | 82 | $ 82 | 84 |
Finite-Lived Intangible Assets, Accumulated Amortization | 22 | 22 | 17 |
Net Carrying Value | 60 | 60 | 67 |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | (5) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 2 | ||
Other [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 32 years | ||
Finite-Lived Intangible Assets, Gross | 8 | $ 8 | 8 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1 | 1 | 1 |
Net Carrying Value | 7 | 7 | 7 |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | 0 | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0 | ||
Goodwill [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 0 | 0 | $ 0 |
Goodwill [Member] | |||
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | 0 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | $ (1) |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Other Liabilities [Abstract] | |||
Electronics operations repurchase commitment | $ 50 | $ 50 | $ (50) |
Restructuring Reserve | 37 | 38 | |
Other Commitment | 33 | 33 | |
Rent and royalties | 25 | 33 | |
Product warranty and recall accruals | 23 | 26 | |
Information technology separation and service obligations | 14 | 36 | $ (53) |
Joint venture payables | 17 | 18 | |
Deferred income | 13 | 11 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 11 | 9 | |
Income taxes payable | 9 | 63 | |
Non-income taxes payable | 8 | 20 | |
Foreign currency hedges | 5 | 1 | |
Other | 34 | 32 | |
Other Liabilities, Current | 279 | 370 | |
Income tax reserves | 27 | 25 | |
Deferred income | 16 | 15 | |
Product warranty and recall accruals | 14 | 12 | |
Non-income tax reserves | 10 | 10 | |
Other | 14 | 13 | |
Other Liabilities, Noncurrent | $ 81 | $ 75 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Apr. 09, 2014 | |
Debt Instrument [Line Items] | |||
Debt Issuance Cost | $ 1 | ||
Short-term debt [Abstract] | |||
Current portion of long-term debt | $ 1 | 3 | |
Other - short-term | 24 | 34 | |
Short-term debt | 25 | 37 | |
Long-term debt | |||
Long-term debt | 347 | 346 | |
Revolving Credit Facility [Member] | |||
Long-term debt | |||
Debt Instrument, face amount | $ 200 | ||
Term Loan [Member] | |||
Long-term debt | |||
Unsecured long-term debt, non-current | $ 345 | 345 | |
Debt Instrument, face amount | $ 350 | ||
Debt Instrument, Maturity Date | Apr. 9, 2021 | ||
Other Long-term Debt [Member] | |||
Long-term debt | |||
Other | $ 2 | $ 1 | |
Affiliated Entity [Member] | |||
Long-term debt | |||
Line of Credit Facility, Capacity Available for Trade Purchases | $ 30 | ||
Revolving Credit Facility [Member] | |||
Long-term debt | |||
Debt Instrument, Maturity Date | Apr. 9, 2019 |
Benefit Expenses (Details)
Benefit Expenses (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($) | |
Benefit Expenses | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 1 | ||||
Number of Participants in annuity purchase | 52 | ||||
Defined Benefit Plan, Settlements, Plan Assets | $ 5 | ||||
U.S Defined Contribution Plan Matching Contributions | 100.00% | ||||
Defined Contribution Plan, matching contribution expenses | 2 | $ 2 | $ 4 | $ 7 | |
United States Pension Plan of US Entity [Member] | |||||
Benefit Expenses | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 7 | 9 | 14 | 17 | |
Expected return on plan assets | (11) | (10) | (21) | (21) | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | 0 | 0 | 0 | |
Amortization of losses and other | 0 | 0 | 0 | 0 | |
Net pension (income) expense | (4) | (1) | (7) | (4) | |
Defined Benefit Plan, Contributions by Employer | 3 | ||||
Foreign Pension Plan [Member] | |||||
Benefit Expenses | |||||
Service cost | 1 | 1 | 2 | 3 | |
Interest cost | 3 | 4 | 5 | 9 | |
Expected return on plan assets | (3) | (4) | (5) | (9) | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 1 | 0 | 1 | 0 | |
Amortization of losses and other | 3 | 4 | |||
Net pension (income) expense | 2 | $ 4 | $ 3 | $ 7 | |
Defined Benefit Plan, Settlements, Benefit Obligation | $ 5 | ||||
Scenario, Forecast [Member] | |||||
Benefit Expenses | |||||
Defined Benefit Plan, Methodology change for future net benefit cost | $ 7 | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 14 |
Provision For Income Taxes (Det
Provision For Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Provision for income taxes | $ 9 | $ 24 | $ 22 | $ 33 |
Tax Adjustments, Settlements, and Unusual Provisions | 5 | |||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 48 | $ 89 | 97 | 122 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 2 | 3 | ||
Worldwide [Member] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 2 | |||
Jurisdictions where valuation allowances are maintained [Member] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ (12) | $ (14) |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2013 | Dec. 31, 2015 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 7 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 23 | $ 29 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 4 | $ 3 | |
Tax Adjustments, Settlements, and Unusual Provisions | 5 | ||
Reconciiation of Unrecognized Tax Benefits [Abstract] | |||
Unrecognized Tax Benefits Beginning balance | 37 | ||
Tax positions related to current periods | |||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 1 | ||
Tax positions related to prior periods | |||
Additions | 1 | ||
Unrecognized Tax Benefits Ending balance | 32 | ||
Liability for Uncertain Tax Positions, Noncurrent | 27 | ||
Visteon Sistemas Automotivos [Member] | |||
Tax positions related to prior periods | |||
Tax audit appeals payment | 14 | $ 15 | |
Worldwide [Member] | |||
Tax Adjustments, Settlements, and Unusual Provisions | 2 | ||
Tax positions related to prior periods | |||
Tax audit appeals and refund claims receivable | 15 | ||
HVCC [Member] | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ 7 |
Stockholders' Equity and Non-52
Stockholders' Equity and Non-controlling Interests (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Stockholders' equity beginning balance | $ 732 | $ 1,199 | $ 1,823 | $ 1,199 | $ 1,821 | |||||
Net income (loss) from continuing operations | $ 39 | $ 65 | $ 75 | $ 89 | ||||||
(Loss) income from discontinued operations, net of tax | (9) | 2,159 | (22) | 2,205 | ||||||
Net income (loss) | 30 | 2,224 | 53 | 2,294 | ||||||
Other comprehensive income (loss) | ||||||||||
Foreign currency translation adjustments | (2) | 67 | 21 | (12) | ||||||
Benefit plans | 1 | 17 | 1 | 34 | ||||||
Unrealized hedging (loss) gain | 0 | (5) | (4) | 7 | ||||||
Total other comprehensive income (loss) | (1) | 79 | 18 | 29 | ||||||
Stock-based compensation, net | 3 | 11 | (6) | 12 | ||||||
Warrant exercises | 0 | 6 | 0 | 15 | ||||||
Share repurchase | 0 | (500) | (500) | (500) | ||||||
Dividends to non-controlling interests | 0 | (8) | 0 | (36) | ||||||
Stockholders' equity ending balance | 764 | $ 1,199 | 2,850 | $ 764 | 2,850 | $ 1,199 | ||||
Accelerated Share Repurchase, Aggregate Purchase Price | 395 | $ 500 | ||||||||
accelerated share repurchase, initial stock delivery | 3,712,297 | 4,370,678 | ||||||||
Accelerated Share Repurchases, Initial Price Paid Per Share | $ 107.75 | $ 72.30 | ||||||||
Treasury Stock, Shares, Acquired | 1,058,965 | |||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 104.79 | |||||||||
Payments for Repurchase of Common Stock | $ 500 | 500 | ||||||||
Dividends Payable, Date Declared | Dec. 9, 2015 | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 43.40 | |||||||||
Dividends Payable, Date of Record | Jan. 15, 2016 | |||||||||
Dividends Payable | $ 1,750 | $ 1,750 | ||||||||
Dividends Payable, Date to be Paid | Jan. 22, 2016 | |||||||||
Payments of Capital Distribution | $ 1,736 | 0 | ||||||||
Dividends, Share-based Compensation | 15 | |||||||||
Non-controlling interests | 148 | 142 | 148 | 142 | ||||||
Accumulated other comprehensive income (loss) | (170) | (171) | (190) | $ (261) | (170) | (261) | (190) | (299) | $ (341) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | (4) | 22 | (42) | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | (2) | (4) | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1 | (1) | 0 | 2 | ||||||
Proceeds from Warrant Exercises | $ 5 | 15 | ||||||||
Noncontrolling Interest, Decrease from Deconsolidation | 0 | 0 | ||||||||
Noncontrolling Interest, Increase from Business Combination | $ (785) | $ (785) | ||||||||
YFVE [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Non-controlling interests | 104 | 100 | 104 | 100 | ||||||
SVAE - Shanghai Electronics [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Non-controlling interests | 43 | 41 | 43 | 41 | ||||||
Other Entity [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Non-controlling interests | 1 | 1 | 1 | 1 | ||||||
5-Year Warrants [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 303,000 | 139,000 | 303,000 | |||||||
Exercise price | $ 58.80 | $ 58.80 | ||||||||
Parent [Member] | ||||||||||
Stockholders' equity beginning balance | 586 | 1,057 | $ 883 | 1,057 | 865 | |||||
Net income (loss) from continuing operations | 35 | $ 58 | 67 | $ 77 | ||||||
(Loss) income from discontinued operations, net of tax | (9) | 2,150 | (22) | 2,181 | ||||||
Net income (loss) | 26 | 2,208 | 45 | 2,258 | ||||||
Other comprehensive income (loss) | ||||||||||
Foreign currency translation adjustments | 0 | 67 | 23 | 0 | ||||||
Benefit plans | 1 | 17 | 1 | 33 | ||||||
Unrealized hedging (loss) gain | 0 | (4) | (4) | 5 | ||||||
Total other comprehensive income (loss) | 1 | 80 | 20 | 38 | ||||||
Stock-based compensation, net | 3 | 11 | (6) | 12 | ||||||
Warrant exercises | 0 | 6 | 0 | 15 | ||||||
Share repurchase | 0 | (500) | (500) | (500) | ||||||
Dividends to non-controlling interests | 0 | 0 | 0 | 0 | ||||||
Stockholders' equity ending balance | 616 | 2,688 | 616 | 2,688 | ||||||
Noncontrolling Interest, Decrease from Deconsolidation | 0 | 0 | ||||||||
Noncontrolling Interest, Increase from Business Combination | 0 | 0 | ||||||||
Noncontrolling Interest [Member] | ||||||||||
Stockholders' equity beginning balance | 146 | 142 | 940 | 142 | 956 | |||||
Net income (loss) from continuing operations | 4 | 7 | 8 | 12 | ||||||
(Loss) income from discontinued operations, net of tax | 0 | 9 | 0 | 24 | ||||||
Net income (loss) | 4 | 16 | 8 | 36 | ||||||
Other comprehensive income (loss) | ||||||||||
Foreign currency translation adjustments | (2) | 0 | (2) | (12) | ||||||
Benefit plans | 0 | 0 | 0 | 1 | ||||||
Unrealized hedging (loss) gain | 0 | (1) | 0 | 2 | ||||||
Total other comprehensive income (loss) | (2) | (1) | (2) | (9) | ||||||
Stock-based compensation, net | 0 | 0 | 0 | 0 | ||||||
Warrant exercises | 0 | 0 | 0 | 0 | ||||||
Share repurchase | 0 | 0 | 0 | 0 | ||||||
Dividends to non-controlling interests | 0 | (8) | 0 | (36) | ||||||
Stockholders' equity ending balance | 148 | 162 | 148 | 162 | ||||||
Noncontrolling Interest, Decrease from Deconsolidation | 0 | 0 | ||||||||
Noncontrolling Interest, Increase from Business Combination | (785) | (785) | ||||||||
Accumulated Translation Adjustment [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Accumulated other comprehensive income (loss) | (132) | (132) | (155) | (138) | (132) | (138) | (155) | (138) | (205) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 4 | 23 | (63) | ||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Accumulated other comprehensive income (loss) | (35) | (36) | (36) | (123) | (35) | (123) | (36) | (156) | (140) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | (6) | 0 | 8 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 3 | 1 | 5 | ||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Accumulated other comprehensive income (loss) | (3) | $ (3) | 1 | 0 | $ 0 | (3) | 0 | 1 | $ (5) | $ 4 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | (2) | (1) | 13 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (1) | (3) | (3) | (9) | ||||||
10b5-1 Share Repurchase Program [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 150 | $ 150 | ||||||||
Payments for Repurchase of Common Stock | $ 105 | |||||||||
Stock Repurchased During Period, Shares | 1,607,849 | |||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 65.05 | |||||||||
March 2016 ASB program [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Payments for Repurchase of Common Stock | $ 395 | |||||||||
HVCC [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | 84 | 0 | 84 | ||||||
HVCC [Member] | Accumulated Translation Adjustment [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 63 | 0 | 63 | ||||||
HVCC [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 20 | 0 | 20 | ||||||
HVCC [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||||||
Other comprehensive income (loss) | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 1 | $ 0 | $ 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net income (loss) from continuing operations attributable to Visteon | $ 35 | $ 58 | $ 67 | $ 77 |
Net income (loss) from discontinued operations, net of tax | (9) | 2,150 | (22) | 2,181 |
Net income (loss) attributable to Visteon | $ 26 | $ 2,208 | $ 45 | $ 2,258 |
Denominator: | ||||
Average common stock outstanding - basic | 34 | 43.4 | 36.3 | 43.8 |
Dilutive effect of warrants and PSUs | 0.4 | 1 | 0.4 | 1.1 |
Diluted shares | 34.4 | 44.4 | 36.7 | 44.9 |
Basic earnings (loss) per share | ||||
Continuing operations | $ 1.03 | $ 1.34 | $ 1.85 | $ 1.76 |
Discontinued operations | (0.26) | 49.54 | (0.61) | 49.79 |
Basic | 0.77 | 50.88 | 1.24 | 51.55 |
Diluted earnings (loss) per share | ||||
Continuing operations | 1.02 | 1.31 | 1.83 | 1.71 |
Discontinued operations | (0.26) | 48.42 | (0.60) | 48.58 |
Diluted | $ 0.76 | $ 49.73 | $ 1.23 | $ 50.29 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||||
Debt Instrument, Fair Value Disclosure | $ 376 | $ 376 | $ 385 | |||
Foreign Exchange Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 140 | 140 | 147 | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 5 | $ (1) | (3) | $ 10 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (1) | (1) | 2 | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (11) | (3) | (17) | ||
KRW option contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 2,229 | |||||
Not Designated as Hedging Instrument [Member] | KRW option contract [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 2 | 0 | 5 | ||
Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 0 | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 107 | 107 | $ 114 | |||
Designated as Hedging Instrument [Member] | Derivative Financial Instruments, Assets [Member] | Foreign Exchange Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Fair Value, Net | 5 | 5 | ||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 2 | (2) | 3 | 13 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (3) | (3) | (9) | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 150 | 150 | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (1) | 0 | (4) | 0 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 | ||
Derivative Liability | 5 | 5 | ||||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 150 | 150 | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 4 | 1 | (2) | 1 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | ||||
Derivative, Fair Value, Net | $ 2 | $ 2 | ||||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | KRW option contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | (4) | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (8) | $ (8) |
Derivatives Balance Sheet Locat
Derivatives Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 140 | $ 147 | |
Foreign Exchange Contract [Member] | Other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 8 | 7 | |
Derivative Asset, Fair Value, Gross Liability | 1 | 1 | |
Derivative, Fair Value, Net | 7 | 6 | |
KRW option contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 2,229 | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 107 | 114 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 7 | 7 | |
Derivative Asset, Fair Value, Gross Liability | 1 | 1 | |
Derivative, Fair Value, Net | 6 | 6 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Current Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 5 | 1 | |
Derivative Liability | 5 | 1 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 1 | 0 | |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | |
Derivative, Fair Value, Net | 1 | $ 0 | |
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Fair Value, Net | 2 | ||
Derivative, Notional Amount | $ 150 |
Derivatives Income Statement Lo
Derivatives Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 5 | $ (1) | $ (3) | $ 10 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (11) | (3) | (17) |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (1) | (1) | 2 | |
KRW option contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 6 | 3 | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 2 | (2) | 3 | 13 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (3) | (3) | (9) |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 4 | 1 | (2) | 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (1) | 0 | (4) | 0 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | KRW option contract [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | (4) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (8) | (8) | ||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 0 | 0 | 0 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (1) | (2) | (1) | (3) |
Not Designated as Hedging Instrument [Member] | KRW option contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 0 | $ 2 | $ 0 | $ 5 |
Credit Risk (Details)
Credit Risk (Details) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Ford And Affiliates [Member] | ||
Concentration Risk [Line Items] | ||
Entity-wide revenue, major customer, percentage | 24.00% | 18.00% |
Mazda [Member] | ||
Concentration Risk [Line Items] | ||
Entity-wide revenue, major customer, percentage | 10.00% | 10.00% |
Nissan\Renault [Member] | ||
Concentration Risk [Line Items] | ||
Entity-wide revenue, major customer, percentage | 11.00% | 11.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2013 | Dec. 31, 2003 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||||||||||
Amount of Bonds Issued by the Charter Township of Van Buren, Michigan | $ 28,000,000 | |||||||||
Sales | $ 773,000,000 | $ 812,000,000 | $ 1,575,000,000 | $ 1,628,000,000 | ||||||
Seller-backed revolving credit facility | $ 56,000,000 | $ 35,000,000 | ||||||||
Interest rate margin applied to seller-backed facility | 5.00% | |||||||||
Loan guarantee amount | $ 26,000,000 | |||||||||
Loan guarantee period | 5 years | |||||||||
Accrual for Environmental Loss Contingencies | 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||
Brazilian Litigation [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency Accrual, at Carrying Value | 10,000,000 | 10,000,000 | ||||||||
Loss Contingency, Pending Claims, Amount | $ 83,000,000 | $ 83,000,000 | ||||||||
YFVE [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Ownership interest acquired by a non-consolidated affiliate | 49.00% | 49.00% | ||||||||
YFVIC [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||||||
Minimum [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated Shortfall in Tax Revenues of the Township | $ 25,000,000 | |||||||||
Seller-backed revolving credit facility replacement | $ 5,000,000 | |||||||||
Maximum [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated Shortfall in Tax Revenues of the Township | $ 36,000,000 | |||||||||
Seller-backed revolving credit facility | $ 90,000,000 | |||||||||
Seller-backed revolving credit facility replacement | 10,000,000 | |||||||||
IRAN, ISLAMIC REPUBLIC OF | Certain HVCC subsidiaries in China [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Sales | $ 12,000,000 | |||||||||
Interiors [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Guarantee for Divested Entities Lease Payments | $ 8,000,000 | 8,000,000 | ||||||||
HVCC [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Guarantee for Divested Entities Lease Payments | $ 10,000,000 | $ 10,000,000 | ||||||||
Subsequent Event [Member] | AllGo Systems [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Business Combination, Consideration Transferred | $ 15,000,000 | |||||||||
Business Combination, Contingent Consideration, Liability | $ 7,000,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 773 | $ 812 | $ 1,575 | $ 1,628 | |
Adjusted EBITDA for Total Company | 77 | 60 | 166 | 138 | |
Depreciation and Amortization Expenses for Continuing Operations | 20 | 21 | 41 | 42 | |
Restructuring charges, net of reversals | 7 | 12 | 17 | 15 | |
Interest expense, net | 3 | 6 | 5 | 11 | |
Equity in net income of (loss) non-consolidated affiliates | 3 | 12 | 3 | 11 | |
Gain (Loss) on Disposition of Business | 0 | (62) | 0 | (62) | |
Other expense, net | 0 | (4) | 4 | 8 | |
Provision for income taxes | 9 | 24 | 22 | 33 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 9 | (2,159) | 22 | (2,205) | |
Net income attributable to non-controlling interests | 4 | 16 | 8 | 36 | |
Non-cash, stock-based compensation expense | 2 | 2 | 4 | 5 | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (1) | ||||
Other Nonoperating Expense | 0 | 3 | 1 | 3 | |
Net income (loss) attributable to Visteon Corporation | 26 | 2,208 | 45 | 2,258 | |
Assets | 2,344 | 2,344 | $ 4,681 | ||
Gain (Loss) on Extinguishment of Debt | 0 | (5) | 0 | (5) | |
Electronics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 2,306 | 2,306 | 4,649 | ||
Other Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 38 | 38 | $ 32 | ||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | (10) | (19) | |||
Operating Segments [Member] | Electronics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 762 | 780 | 1,555 | 1,561 | |
Adjusted EBITDA for Total Company | 79 | 60 | 173 | 144 | |
Operating Segments [Member] | Other Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 11 | 42 | 20 | 86 | |
Adjusted EBITDA for Total Company | $ (2) | $ 0 | $ (7) | $ (6) |