Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 20, 2017 | |
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 | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,765,589 | |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Sales | $ 810 | $ 802 |
Cost of sales | 679 | 681 |
Gross margin | 131 | 121 |
Selling, general and administrative expenses | 51 | 56 |
Restructuring charges, net of reversals | 1 | 10 |
Interest expense | 6 | 4 |
Interest income | 1 | 2 |
Equity in net income of (loss) non-consolidated affiliates | 2 | 0 |
Other expense, net | 1 | 4 |
Income (loss) before income taxes | 75 | 49 |
Provision for income taxes | 16 | 13 |
Net income (loss) from continuing operations | 59 | 36 |
(Loss) income from discontinued operations, net of tax | 8 | (13) |
Net income (loss) | 67 | 23 |
Net income attributable to non-controlling interests | 4 | 4 |
Net income (loss) attributable to Visteon Corporation | $ 63 | $ 19 |
Basic earnings (loss) per share: | ||
Continuing operations | $ 1.69 | $ 0.84 |
Discontinued operations | 0.25 | (0.34) |
Basic earnings (loss) attributable to Visteon Corporation | 1.94 | 0.50 |
Diluted earnings (loss) per share | ||
Continuing operations | 1.67 | 0.83 |
Discontinued operations | 0.24 | (0.34) |
Diluted earnings (loss) attributable to Visteon Corporation | $ 1.91 | $ 0.49 |
Comprehensive income: | ||
Comprehensive income (loss) | $ 90 | $ 42 |
Comprehensive income (loss) attributable to Visteon Corporation | $ 85 | $ 38 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and equivalents | $ 688 | $ 878 |
Restricted cash | 4 | 4 |
Accounts receivable, net | 552 | 505 |
Inventories, net | 162 | 151 |
Other current assets | 174 | 170 |
Total current assets | 1,580 | 1,708 |
Property and equipment, net | 346 | 345 |
Intangible assets, net | 128 | 129 |
Investments in non-consolidated affiliates | 37 | 45 |
Other non-current assets | 147 | 146 |
Total assets | 2,238 | 2,373 |
LIABILITIES AND EQUITY | ||
Short-term debt, including current portion of long-term debt | 49 | 36 |
Accounts payable | 463 | 463 |
Accrued employee liabilities | 87 | 103 |
Other current liabilities | 224 | 309 |
Total current liabilities | 823 | 911 |
Long-term debt | 347 | 346 |
Employee benefits | 302 | 303 |
Deferred tax liabilities | 20 | 20 |
Other non-current liabilities | 66 | 69 |
Stockholders' equity: | ||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of March 31, 2017 and December 31, 2016) | 0 | 0 |
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 32 and 33 million shares outstanding as of March 31, 2017 and December 31, 2016, respectively) | 1 | 1 |
Additional paid-in capital | 1,302 | 1,327 |
Retained earnings | 1,332 | 1,269 |
Accumulated other comprehensive loss | (211) | (233) |
Treasury stock | (1,876) | (1,778) |
Total Visteon Corporation stockholders' equity | 548 | 586 |
Non-controlling interests | 132 | 138 |
Total equity | 680 | 724 |
Total liabilities and equity | $ 2,238 | $ 2,373 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 33 | 33 |
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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Operating Activities | |||
Net income (loss) | $ (67) | $ (23) | |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Gain on repurchase of India operations | (7) | 0 | |
Depreciation and amortization | 19 | 21 | |
Equity in net income of non-consolidated affiliates, net of dividends remitted | (2) | ||
Non-cash stock-based compensation | 2 | 2 | |
Losses on divestitures and impairments | 1 | 1 | |
Other Noncash Income (Expense) | (3) | 0 | |
Changes in assets and liabilities: | |||
Accounts receivable | (39) | (24) | |
Inventories | (8) | 9 | |
Accounts payable | 18 | 4 | |
Accrued income taxes | 0 | (43) | |
Other assets and other liabilities | (64) | (51) | |
Net cash provided from operating activities | (10) | (58) | |
Investing Activities | |||
Payments to Acquire Businesses and Interest in Affiliates | (47) | 0 | |
Capital expenditures | (32) | (25) | |
Climate Transaction Withholding Tax Refund | 0 | 356 | |
Short-term Investments | 0 | 47 | |
Loans to non-consolidated affiliates, net of repayments | 0 | 8 | |
Payments associated with business divestitures, net | 10 | 3 | |
Net cash provided from (used by) investing activities | (69) | 373 | |
Financing Activities | |||
Short-term debt, net | 15 | 0 | |
Principal payments on debt | (2) | (1) | |
Distribution payments | (1) | (1,736) | $ (1,740) |
Payments for Repurchase of Common Stock | (125) | (500) | (500) |
Payments Related to Tax Withholding for Share-based Compensation | (1) | (11) | |
Proceeds from (Payments for) Other Financing Activities | (3) | 0 | |
Net cash used by financing activities | (117) | (2,248) | |
Net increase (decrease) in cash and equivalents | (190) | (1,926) | |
Cash and equivalents at beginning of the period | 878 | 2,729 | 2,729 |
Cash and equivalents at end of the period | 803 | $ 878 | |
Effect of exchange rate changes on cash | $ 6 | $ 7 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2017 | |
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, Mazda, Nissan/Renault, General Motors, Honda, BMW and Daimler. 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 10,000 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 instrument clusters, information displays, infotainment systems, audio systems, telematics solutions, and head up displays. The Company's vehicle cockpit electronics business is comprised of and reported under the Electronics segment. In addition to the Electronics segment, the Company had operations in South America and Europe associated with the former Interiors and Climate businesses, not subject to discontinued operations classification, that comprised Other, and were exited by December 31, 2016. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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. Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation. Other Expense, Net: Other expense, net includes the following: Three Months Ended 2017 2016 (Dollars in Millions) Transformation initiatives $ — $ 3 Transaction exchange losses — 1 Loss on non-consolidated affiliate transaction 1 — $ 1 $ 4 Transformation initiative costs include information technology separation costs, integration of acquired business, and financial and advisory services incurred in connection with the Company's transformation into a pure play cockpit electronics business. Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $3 million related to the Letter of Credit Facility, and $1 million related to cash collateral for other corporate purposes as of March 31, 2017 . 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. This ASU allows for both retrospective and prospective methods of adoption. The Company has, with other industry leaders, interacted with the FASB on certain interpretation issues as well as interacted with non-authoritative industry groups with respect to the implementation of the standard. The Company will continue to monitor the interactions between its industry group and the standard setters with particular attention to the accounting for reimbursable tooling and engineering costs, currently accounted for as cost reductions. In addition, the Company will continue to evaluate its contracts with customers, analyzing the impact, if any, on parts production and reimbursements for engineering and tooling costs. Currently, the Company does not expect the adoption of this standard to have a material impact on the its results of operations or financial position. The Company will adopt this standard January 1, 2018 and has not yet selected a transition method. 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, these amendments are not 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's adoption of this standard did not have a material impact on its consolidated financial statements. The Company has adopted an entity-wide accounting policy election to account for forfeitures in compensation cost when they occur. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of certain cash receipts and cash payments." The ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are classified in the statement of cash flows. The ASU will be applied using a retrospective transition method to each period presented. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the presentation of net periodic pension cost and net periodic postretirement benefit cost." The ASU requires entities to present the service cost component of the net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Entities will present the other components separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented, and disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. The standard will be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, for the guidance limiting the capitalization of net periodic benefit cost in assets to the service cost. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2017 and interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. |
Business Acquisitions (Notes)
Business Acquisitions (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Acquisition On July 8, 2016 Visteon acquired AllGo Embedded Systems Private Limited, a leading developer of embedded multimedia system solutions to global vehicle manufacturers, for a purchase price of $17 million ("AllGo Purchase") including $2 million of contingent consideration to be paid over the next year if certain technology milestones are achieved. In addition, the purchase agreement includes contingent payments of $5 million if key employees remain employed through July 2019. The AllGo Purchase is expected to add greater scale and depth to the Company's infotainment software capabilities. The operating results for the business acquired have been included in the Electronics segment from the date of acquisition. During the three months ended March 31, 2017, the Company incurred acquisition-related costs of approximately $1 million . These amounts were recorded as incurred and have been classified as "Other expenses,net" within the Company's consolidated statements of comprehensive income. The AllGo purchase was accounted for as a business combination, with the purchase price allocated on a preliminary basis as of July 2016. The preliminary purchase price allocation, which is subject to change and may be subsequently adjusted to reflect final valuation results, is shown below: (Dollars in Millions) Purchase price $ 17 Assets Acquired: Accounts receivable $ 1 Intangible assets 7 Goodwill 12 Total assets acquired $ 20 Liabilities Assumed: Deferred tax liabilities 3 Total liabilities assumed $ 3 Assets acquired and liabilities assumed were recorded at estimated fair values based on management's estimates, available information, and reasonable and supportable assumptions. Additionally, the Company utilized a third-party to assist with certain estimates of fair values. Fair values for intangible assets were based on the income approach including excess earnings and relief from royalty methods. These fair value measurements are classified within level 3 of the fair value hierarchy. The preliminary purchase price allocations may be subsequently adjusted to reflect final valuation results. The pro forma effects of the AllGo acquisitions does not materially impact the Company's reported results for any period presented, and as a result no pro forma financial statements are presented. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 3. Discontinued Operations During 2014 and 2015, the Company divested the majority of its global Interiors business (the "Interiors Divestiture") and completed the sale of its Argentina and Brazil interiors operations on December 1, 2016. Separately, the Company completed the sale of the majority of its global Climate business (the "Climate Transaction") during 2015. As the operations subject to the Interiors Divestiture and Climate Transaction met conditions required to qualify for discontinued operations reporting, the results of operations for the Interiors and Climate businesses have been reclassified to income (loss) from discontinued operations, net of tax in the consolidated statements of comprehensive income for the three month periods ended March 31, 2017 and 2016. Discontinued operations are summarized as follows: Three Months Ended 2017 2016 (Dollars in Millions) Sales $ — $ 9 Cost of sales — 13 Gross margin — (4 ) Gain on Climate Transaction (7 ) — Loss and impairment on Interiors Divestiture — 1 Income (loss) from discontinued operations before income taxes 7 (5 ) (Benefit) provision for income taxes (1 ) 8 Net income (loss) from discontinued operations, net of tax, attributable to Visteon $ 8 $ (13 ) In connection with the Climate Transaction, the Company completed the repurchase of the electronics operations located in India during the first quarter of 2017 for $47 million , recognizing a $7 million gain on settlement of purchase commitment contingencies. The Company had previously consolidated the India operations based on the Company's controlling financial interest as a result of the repurchase obligation, operating control, and the obligation to fund losses or benefit from earnings. The Company continues to consolidate this entity based on the Company's voting control. During the three months ended March 31, 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. |
Non-Consolidated Affiliates (No
Non-Consolidated Affiliates (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Yanfeng Transactions [Abstract] | |
Yanfeng Transactions [Text Block] | Non-Consolidated Affiliates Non-Consolidated Affiliate Transaction s Visteon and Yangfeng Visteon Automotive Trim Systems Co. Ltd. ("YFV") each own 50% of a joint venture under the name of Yanfeng Visteon Electronic (China) Investment Co., Ltd. ("YFVIC"). In October 2014, YFVIC completed the purchase of YFV’s 49% direct ownership in Yanfeng Visteon Automotive Electronics Co., Ltd ("YFVE") a consolidated joint venture of the Company. The purchase by YFVIC was financed through a shareholder loan from YFV and external borrowings which were guaranteed by Visteon, of which $18 million is outstanding as of March 31, 2017. The guarantee contains standard non-payment provisions to cover the borrowers in event of non-payment of principal, accrued interest, and other fees, and the loan is expected to be fully paid by September 2019. In January 2017, the Company completed the sale of a 50% interest in an equity method investment for proceeds of $7 million , consistent with its carrying value. In March 2017, the Company sold a cost method investment for proceeds of approximately $3 million . The Company recorded a pretax loss of $1 million during the three months ended March 31, 2017, classified as "Other expense, net." Investments in Affiliates The Company recorded equity in net income of affiliates of $2 million and a net loss of less than $1 million for the three month periods ended March 31, 2017 and 2016 respectively. Investments in affiliates were $37 million and $45 million as of March 31, 2017 and December 31, 2016 , respectively. As of March 31, 2017 and December 31, 2016 , investments in affiliates accounted for under the equity method totaled $36 million and $40 million , respectively, while investments in affiliates accounted for under the cost method were $1 million as of March 31, 2017 and $ 5 million at December 31, 2016 . Variable Interest Entities The Company determines whether joint ventures in which it has invested are Variable Interest Entities (“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 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 YFV each own 50% of YFVIC and neither entity has the power to control the operations of YFVIC, therefore the Company is not the primary beneficiary of YFVIC and does not consolidate the joint venture. A summary of the Company's investments in YFVIC is provided below. March 31 December 31 2017 2016 (Dollars in Millions) Payables due to YFVIC $ 7 $ 14 Exposure to loss in YFVIC Investment in YFVIC $ 24 $ 22 Receivables due from YFVIC 12 15 Subordinated loan receivable 22 22 Loan guarantee 18 22 Maximum exposure to loss in YFVIC $ 76 $ 81 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 5. Restructuring Activities 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 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. During the three months ended March 31, 2017 and 2016, the Company recorded $1 million and $10 million of restructuring expenses, net of reversals, respectively. Electronics During the fourth quarter of 2016, the Company announced a restructuring program impacting engineering and administrative functions to further align the Company's engineering and related administrative footprint with its core product technologies and customers. Through March 31, 2017, the Company has recorded approximately $28 million of restructuring expenses under this program, and expects to incur up to $45 million of restructuring costs associated with approximately 250 employees for this program. During the three months ended March 31, 2017, the Company has recorded approximately $1 million of restructuring expenses under this program, and $17 million remains accrued for the program as of March 31, 2017.The Company expects to record additional restructuring costs related to this program as the underlying plan is finalized. 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 months ended March 31, 2016, the Company recorded approximately $11 million of restructuring expenses under this program, associated with approximately 90 employees. As of March 31, 2017 $1 million remains accrued for this program and charges are considered substantially complete. During 2015, the Company announced a restructuring program designed to reduce the workforce at a European Electronics facility, of which $5 million remains accrued as of March 31, 2017. In connection with the acquisition of substantially all of the global automotive electronic business of Johnson Controls Inc. (the "Electronics Acquisition") in 2014, the Company commenced a restructuring program designed to achieve cost savings through transaction synergies. Charges for the program are considered substantially complete and approximately $2 million remains accrued as of March 31, 2017. Other and Discontinued Operations During 2016, the Company recorded restructuring expenses related to severance and termination benefits primarily related to the wind-down of certain operations in South America, of which $1 million remains accrued as of March 31, 2017. As of March 31, 2017, the Company retained approximately $5 million of restructuring reserves as part of the Interiors Divestiture associated with previously announced programs for the fundamental reorganization of operations at facilities in Brazil and France. Restructuring Reserves Restructuring reserve balances of $32 million and $40 million as of March 31, 2017 and December 31, 2016 , respectively, are classified as "Other current liabilities" on the consolidated balance sheets. The Company anticipates that the activities associated with the current restructuring reserve balance will be substantially complete within one year. 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, 2016 $ 31 $ 9 $ 40 Expense 1 — 1 Utilization (8 ) (1 ) (9 ) March 31, 2017 $ 24 $ 8 $ 32 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 6. Inventories Inventories consist of the following components: March 31 December 31 2017 2016 (Dollars in Millions) Raw materials $ 83 $ 83 Work-in-process 49 34 Finished products 30 34 $ 162 $ 151 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 7. Other Assets Other current assets are comprised of the following components: March 31 December 31 2017 2016 (Dollars in Millions) Recoverable taxes $ 71 $ 60 Prepaid assets and deposits 37 35 Joint venture receivables 32 39 Notes receivable 19 18 Contractually reimbursable engineering costs 6 7 Foreign currency hedges 6 6 Other 3 5 $ 174 $ 170 Notes receivable represent bank notes generally maturing within six months. Other non-current assets are comprised of the following components: March 31 December 31 2017 2016 (Dollars in Millions) Deferred tax assets $ 46 $ 48 Recoverable taxes 35 34 Joint venture receivables 26 25 Long term notes receivable 10 10 Contractually reimbursable engineering costs 10 11 Other 20 18 $ 147 $ 146 In accordance with the Interiors Divestiture, the Company entered into a three year term loan with the buyer for $10 million , which matures on December 1, 2019. Current and non-current contractually reimbursable engineering costs of $6 million and $10 million , respectively, as of March 31, 2017 and $7 million and $11 million , respectively, as of December 31, 2016 , 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 $5 million during the remainder of 2017, $3 million in 2018, and $8 million in 2019 and thereafter. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 8. Property and Equipment, net Property and equipment, net consists of the following: March 31 December 31 2017 2016 (Dollars in Millions) Land $ 14 $ 16 Buildings and improvements 72 65 Machinery, equipment and other 422 401 Construction in progress 50 54 558 536 Accumulated depreciation (230 ) (210 ) 328 326 Product tooling, net of amortization 18 19 $ 346 $ 345 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 are summarized as follows: Three Months Ended 2017 2016 (Dollars in Millions) Depreciation $ 15 $ 16 Amortization 1 1 $ 16 $ 17 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets, net as of March 31, 2017 and December 31, 2016 , are comprised of the following: March 31, 2017 December 31, 2016 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 10 $ 41 $ 26 $ 15 $ 40 $ 25 $ 15 Customer related 9 83 27 56 83 25 58 Capitalized software development 3 5 — 5 4 — 4 Other 32 8 1 7 8 1 7 Subtotal 137 54 83 135 51 84 Indefinite-Lived: Goodwill 45 — 45 45 — 45 Total $ 182 $ 54 $ 128 $ 180 $ 51 $ 129 The Company recorded approximately $3 million and $4 million of amortization expense related to definite-lived intangible assets for the three months ended March 31, 2017 and 2016, respectively. The Company currently estimates annual amortization expense to be $13 million for 2017 , $14 million each year from 2018 through 2019, $11 million for 2020, and $10 million for 2021 . 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. There were no indicators of potential impairment during the three months ended March 31, 2017. A roll-forward of the carrying amounts of intangible assets is presented below: Definite-lived intangibles Indefinite-lived intangibles Developed Technology Customer Related Capitalized Software Development Other Goodwill Total (Dollars in Millions) December 31, 2016 $ 15 $ 58 $ 4 $ 7 $ 45 $ 129 Additions — — 1 — — 1 Foreign currency 1 — — — — 1 Amortization (1 ) (2 ) — — — (3 ) March 31, 2017 $ 15 $ 56 $ 5 $ 7 $ 45 $ 128 |
Other liabilities
Other liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 9. Other Liabilities Other current liabilities are summarized as follows: March 31 December 31 2017 2016 (Dollars in Millions) Product warranty and recall accruals $ 38 $ 43 Restructuring reserves 32 40 Contribution payable 32 31 Rent and royalties 20 23 Income taxes payable 18 22 Dividends payable 17 5 Distribution payable 14 15 Joint venture payables 10 22 Deferred income 10 14 Non-income taxes payable 5 8 Foreign currency hedges 2 7 Electronics operations repurchase commitment — 50 Information technology separation and service obligations — 2 Other 26 27 $ 224 $ 309 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 $32 million during the first half of 2017 upon fulfillment of buyer contractual commitments. On January 22, 2016 the Company paid to shareholders a special distribution of $1.74 billion , and an additional $14 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. The special cash distribution was funded from the Climate Transaction proceeds. Following the initial sale as part of the Climate Transaction, the Company repurchased an electronics operation located in India on March 27, 2017 as further described in Note 3, Discontinued Operations. Other non-current liabilities are summarized as follows: March 31 December 31 2017 2016 (Dollars in Millions) Deferred income $ 18 $ 18 Product warranty and recall accruals 14 12 Income tax reserves 13 14 Non-income tax reserves 7 10 Other 14 15 $ 66 $ 69 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 10. Debt The Company’s short and long-term debt consists of the following: March 31 December 31 2017 2016 (Dollars in Millions) Short-Term Debt: Current portion of long-term debt $ 1 $ 3 Short-term borrowings 48 33 $ 49 $ 36 Long-Term Debt: Term debt facility $ 347 $ 346 Short-Term Debt Short-term borrowings are primarily related to the Company's non-U.S. consolidated joint ventures and are payable in USD, Chinese Renminbi and India Rupee. The Company had short-term borrowings of $ 48 million and $33 million as of March 31, 2017 and December 31, 2016 , respectively. Short-term borrowings increased in Q1 2017 primarily due to changes in working capital needs. Available borrowings on outstanding affiliate credit facilities as of March 31, 2017 are approximately $17 million and certain of these facilities have pledged assets as security. Long-Term Debt As of December 31, 2016, the Company had an amended credit agreement (the “Credit Agreement”) which included a $350 million Term Facility maturing April 9, 2021 and a Revolving Credit Facility with capacity of $200 million maturing April 9, 2019. Borrowings under the Term Loan accrued interest at the greater of LIBOR or 0.75% , plus 2.75% , with an option by the Company to specify the LIBOR tenor of either 1, 2, 3, or 6 months. Loans drawn under the Revolving Credit Facility had an interest rate equal to LIBOR plus a margin ranging from 2.00% to 2.75% as specified by a ratings grid contained in the Credit Agreement. As of December 31, 2016, borrowings under the Revolving Credit Facility would accrue interest at LIBOR plus 2.50% . There were no outstanding borrowings at year-end. On March 24, 2017, the Company entered into a second amendment to the Credit Agreement to, among other things, extend the maturity dates of both facilities by three years and increase the Revolving Credit Facility capacity to $300 million . The amended Revolving Credit Facility will mature on March 24, 2022 and the amended Term Facility will mature on March 24, 2024 . In addition, the amendment reduced the LIBOR spread applicable to each of the Revolving Credit Facility and the Term Facility by 0.50% and eliminated the 0.75% LIBOR floor. The $350 million of borrowings under the amended Term Loan Facility now accrue interest at a rate of LIBOR plus 2.25% . As the Company received a ratings upgrade by Standard & Poor’s during the refinancing, loans drawn under the Revolving Credit Facility would now accrue an interest rate of LIBOR plus 1.75% , if drawn. The Revolver Credit Facility also provides up to $75 million availability for the issuance of letters of credit and a maximum of $20 million for swing line borrowing. Any amount of the facility utilized for letters of credit or swing line loans outstanding will reduce the amount available under the amended Revolving Facility. The Company may request increases in the limits under the amended Term Facility and the amended Revolving Facility and may request the addition of one or more term loan facilities under the Credit Agreement. Outstanding borrowings may be prepaid without penalty (other than borrowings made for the purpose of reducing the effective interest rate margin or weighted average yield of the loans). There are mandatory prepayments of principal in connection with: (i) excess cash flow sweeps above certain leverage thresholds, (ii) certain asset sales or other dispositions, (iii) certain refinancing of indebtedness and (iv) over-advances under the Revolving Facility. No excess cash flow sweeps are required at the Company’s current leverage ratios. The Credit Agreement requires the Company and its subsidiaries to comply with customary affirmative and negative covenants, and contains customary events of default. The Revolving Facility also requires that the Company maintain a total net leverage ratio no greater than 3.00 : 1.00 . During any period when the Company’s corporate and family ratings meet investment grade ratings, certain of the negative covenants shall be suspended. As of March 31, 2017, the Company was in compliance with all covenants. All obligations under the Credit Agreement and obligations in respect of certain cash management services and swap agreements with the lenders and their affiliates are unconditionally guaranteed by certain of the Company’s subsidiaries. Under the terms of the Credit Agreement, all obligations under the Credit Agreement are secured by a first-priority perfected lien (subject to certain exceptions) on substantially all property of the Company and the subsidiaries party to the Security Agreement, subject to certain limitations. During the three months ended March 31, 2017, the Company recorded $1 million of interest expense and deferred as a non-current asset $2 million of costs in connection with amending the Credit Facility. The deferred costs will be amortized over the term of the Credit Facility. As of March 31, 2017, the amended Term Facility remains at $350 million of aggregate principle and there were no outstanding borrowings under the amended Revolving Facility. |
Employee Retirement Benefits
Employee Retirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and 2016 were as follows: U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 (Dollars in Millions) Costs Recognized in Income: Service cost $ — $ — $ — $ 1 Interest cost 7 7 2 2 Expected return on plan assets (10 ) (10 ) (2 ) (2 ) Net pension (income) expense $ (3 ) $ (3 ) $ — $ 1 During the three months ended March 31, 2017 , cash contributions to the Company's defined benefit plans were less than $1 million for the U.S. plans and were $1 million for the non-U.S. plans. The Company expects to make cash contributions to its defined benefit pension plans of $7 million in 2017 . The Company’s expected 2017 contributions may be revised. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. Income Taxes During the three month period ended March 31, 2017 , the Company recorded a provision for income tax on continuing operations of $16 million , 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 $3 million and $7 million for the three months ended March 31, 2017 and March 31, 2016 , 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 three month period ended March 31, 2017 and 2016 , the Company recognized expense primarily related to non-U.S. withholding taxes of $2 million in both years 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 but not limited to, forecasts of projected annual earnings, taxing jurisdictions in which the pretax income and/or pretax losses will be generated 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 judgment 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 particular, when there is a cumulative loss incurred over a three-year period. In regards to the full valuation allowance recorded against the U.S. net deferred tax assets, the cumulative U.S. pretax book loss adjusted for significant permanent items incurred over the three-year period ended December 31, 2016 limits the ability to consider other subjective evidence such as the Company’s plans to improve U.S. profits, and as such, the Company continues to maintain a full valuation allowance against the U.S. net deferred tax assets. Based on the Company’s current assessment, it is possible that within the next 12 to 24 months, the existing valuation allowance against the U.S. net deferred tax assets could be partially released. Any such release is dependent upon the sustained improvement in U.S. operating results, and, if such a release of the valuation allowance were to occur, it could have a significant impact on net income in the quarter in which it is deemed appropriate to partially release the reserve. Unrecognized Tax Benefits Gross unrecognized tax benefits as of March 31, 2017 and December 31, 2016 , including amounts attributable to discontinued operations, were $18 million and $35 million , respectively. Of these amounts approximately $10 million and $12 million as of March, 2017 and December 31, 2016, 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 March 31, 2017 and December 31, 2016 were $4 million in both years. During the first quarter of 2017, the IRS completed the audit of the Company's U.S. tax returns for the 2012 and 2013 tax years. The closing of the audit did not have a material impact on the Company's effective tax rate due to the valuation allowances maintained against the Company's U.S. tax attributes resulting in a decrease in unrecognized tax benefits of $16 million . Also during the first quarter of 2017, the Company settled tax assessments from the Mexican tax authorities in the amount of $2 million related to certain transfer pricing-related issues. With few exceptions, the Company is no longer subject to U.S. federal tax examinations for years before 2014, or state, 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 and Mexico 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 $13 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: Three Months Ended (Dollars in Millions) Beginning balance $ 35 Tax positions related to current period: Additions 1 Tax positions related to prior periods: Reductions (18 ) Ending balance $ 18 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 $16 million , as of March 31, 2017. 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 $19 million as of March 31, 2017, and are included in "Other non-current assets" on the consolidated balance sheet. |
Stockholders' Equity and Non-co
Stockholders' Equity and Non-controlling Interests | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity and Non-controlling Interests | NOTE 13. Stockholders’ Equity and Non-controlling Interests Changes in equity for the three months ended March 31, 2017 and 2016 are as follows: 2017 2016 Visteon NCI Total Visteon NCI Total (Dollars in Millions) Three Months Ended March 31 Beginning balance $ 586 $ 138 $ 724 $ 1,057 $ 142 $ 1,199 Net income from continuing operations 55 4 59 32 4 36 Net income (loss) from discontinued operations 8 — 8 (13 ) — (13 ) Net income 63 4 67 19 4 23 Other comprehensive income (loss) Foreign currency translation adjustments 18 1 19 23 — 23 Unrealized hedging gain (loss) 4 — 4 (4 ) — (4 ) Total other comprehensive income (loss) 22 1 23 19 — 19 Stock-based compensation, net 2 — 2 (9 ) — (9 ) Share repurchase (125 ) — (125 ) (500 ) — (500 ) Dividends to non-controlling interests — (11 ) (11 ) — — — Ending balance $ 548 $ 132 $ 680 $ 586 $ 146 $ 732 Share Repurchase Program During 2016, Visteon completed two stock buyback programs with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $500 million . Under these programs, Visteon purchased 7,190,506 shares at an average price of $69.48 . On January 10, 2017, the Company's board of directors authorized $400 million of share repurchase of its shares of common stock through March 30, 2018. On February 27, 2017 entered into an accelerated share buyback ("ASB") program with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $125 million . On March 2, 2017, the Company received an initial delivery of 1,062,022 shares of common stock using a reference price of $94.16 . The ASB's first acceleration and scheduled termination dates are April 10, and May 8, 2017, respectively. The Company may purchase additional shares pursuant to the foregoing authorization. Non-Controlling Interests Non-controlling interests in the Visteon Corporation economic entity are as follows: March 31 December 31 2017 2016 (Dollars in Millions) Yanfeng Visteon Automotive Electronics Co., Ltd. $ 89 $ 97 Shanghai Visteon Automotive Electronics, Co., Ltd. 41 39 Other 2 2 $ 132 $ 138 Accumulated Other Comprehensive (Loss) Income Changes in Accumulated other comprehensive (loss) income (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended 2017 2016 (Dollars in Millions) Changes in AOCI: Beginning balance $ (233 ) $ (190 ) Other comprehensive income (loss) before reclassification, net of tax 20 21 Amounts reclassified from AOCI 2 (2 ) Ending balance $ (211 ) $ (171 ) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (163 ) $ (159 ) Other comprehensive income before reclassification, net of tax (a) 19 29 Ending balance (144 ) (130 ) Net investment hedge Beginning balance 10 4 Other comprehensive loss before reclassification, net of tax (a) (1 ) (6 ) Ending balance 9 (2) Benefit plans Beginning balance (75 ) (36 ) Ending balance (75 ) (36 ) Unrealized hedging (loss) gain Beginning balance (5 ) 1 Other comprehensive income (loss) before reclassification, net of tax (b) 2 (2 ) Amounts reclassified from AOCI 2 (2 ) Ending balance (1 ) (3 ) Total AOCI $ (211 ) $ (171 ) (a) There were no income tax effects for the three month periods ending March 31, 2017 and 2016, due to the recording of valuation allowance. (b) Net tax tax expense of $1 million and tax benefit of $1 million are related to unrealized hedging (loss) gain for both the three months ended March 31, 2017 and 2016 , respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
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 potentially 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 2017 2016 (In Millions, Except Per Share Amounts) Numerator: Net income from continuing operations attributable to Visteon $ 55 $ 32 Income (loss) from discontinued operations, net of tax 8 (13 ) Net income attributable to Visteon $ 63 $ 19 Denominator: Average common stock outstanding - basic 32.5 38.1 Dilutive effect of performance based share units and other 0.5 0.4 Diluted shares 33.0 38.5 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon: Continuing operations $ 1.69 $ 0.84 Discontinued operations 0.25 (0.34 ) $ 1.94 $ 0.50 Diluted earnings (loss) per share attributable to Visteon: Continuing operations $ 1.67 $ 0.83 Discontinued operations 0.24 (0.34 ) $ 1.91 $ 0.49 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements and Financial Instruments | NOTE 15. Fair Value Measurements and Financial Instruments Fair Value Measurements 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. Items Measured at Fair Value on a Recurring Basis 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. 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. Item Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. The fair value measurements are generally determined using unobservable inputs and are classified within Level 3 of the fair value hierarchy. These assets include long-lived assets, intangible assets and investments in affiliates, which may be written down to fair value as a result of impairment. Items Not Carried at Fair Value The Company's fair value of debt was approximately $401 million and $389 million as of March 31, 2017 and December 31, 2016 , 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 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 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. There is no cash collateral on any of these derivatives. 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. As of March 31, 2017 and December 31, 2016 , 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 $153 million and $169 million , respectively. Fair value estimates of these contracts are based on quoted market prices and other observable inputs. As of March 31, 2017 and December 31, 2016 , respectively, approximately $121 million and $138 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 sheets. There was no ineffectiveness associated with such derivatives as of March 31, 2017 and December 31, 2016 and the fair value of these derivatives was a liability of $1 million and $6 million , respectively. The difference between the gross and net value of these derivatives after offset by counter party is not material. The estimated AOCI that is expected to be reclassified into earnings within the next 12 months is a $1 million loss. 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 such derivatives as of March 31, 2017 and December 31, 2016 and the fair value of these derivatives was an asset of $5 million and $6 million , respectively. 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 the "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 March 31, 2017 and December 31, 2016 there was no ineffectiveness associated with these derivatives and the fair value was a liability of less than $1 million and $1 million , respectively. AOCI that is expected to be reclassified into earnings within the next 12 months is a $2 million loss. Financial Statement Presentation Gains and losses on derivative financial instruments for the three months ended March 31, 2017 and 2016 are as follows: Recorded (Loss) Income into AOCI, net of tax Reclassified from AOCI into (Income) Loss Recorded in (Income) Loss 2017 2016 2017 2016 2017 2016 (Dollars in Millions) Three Months Ended March 31 Foreign currency risk - Cost of sales Cash flow hedges $ 2 $ 1 $ 2 $ (2 ) $ — $ — Net investment hedges (1 ) (6 ) — — — — Non-designated cash flow hedges — — — — (1 ) — Interest rate risk - Interest expense, net: Interest rate swap — (3 ) — — — — $ 1 $ (8 ) $ 2 $ (2 ) $ (1 ) $ — 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 credit rating requirements. 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 receivable except for Ford and its affiliates which represents 16% of the balance as of March 31, 2017 and December 31, 2016 , Mazda which represents less then 10% and 10% of the balance as of March 31, 2017 and December 31, 2016 , respectively, and Nissan/Renault which represents 10% of the balance as of March 31, 2017 and December 31, 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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. The Company is currently involved in disputes with its former President and Chief Executive Officer, Timothy D. Leuliette. Mr. Leuliette filed an arbitration demand against the Company with the American Arbitration Association, alleging claims relating to the cessation of his employment. The Company subsequently filed a complaint against Mr. Leuliette in the U.S. District Court for the Eastern District of Michigan, seeking to enjoin the arbitration and asserting additional claims. The federal litigation is currently stayed pending a ruling in the arbitration. The Company disputes the factual and legal assertions made by Mr. Leuliette, has asserted counterclaims against him in the arbitration, and, although there can be no assurances, the Company does not currently believe that the resolution of these disputes will have a material adverse impact on its results of operations or financial condition. In November 2013, the Company and Halla Visteon Climate Control Corporation, a Korean corporation (“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 and Argentina 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 March 31, 2017 , the Company maintained accruals of approximately $10 million and $5 million for claims aggregating approximately $59 million and $34 million in Brazil and Argentina, respectively. 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 The Company provided a $18 million loan guarantee to YFVIC. The guarantee contains standard non-payment provisions to cover the borrowers in event of non-payment of principal, accrued interest, and other fees, and the loan is expected to be fully paid by September 2019. 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 March 31, 2017, the Company has approximately $7 million and $6 million of outstanding guarantees respectively, related to divested Climate and Interiors entities. These guarantees will generally cease upon expiration of current lease agreements. 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 following table provides a reconciliation of changes in the product warranty and recall claims liability: Three Months Ended March 31 2017 2016 (Dollars in Millions) Beginning balance $ 55 $ 38 Accruals for products shipped 6 4 Changes in estimates 3 (2 ) Specific cause actions — (1 ) Recoverable warranty/recalls — 1 Foreign currency 1 1 Settlements (13 ) (3 ) Ending balance $ 52 $ 38 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 as of March 31, 2017 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 | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 17. Segment Information Financial results for the Company's reportable segment 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 maker in allocating resources and in assessing performance. The Company’s chief operating decision maker, the Chief Executive Officer, evaluates the performance of the Company’s segment 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 segment is 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. Prior to 2017, the Company also had Other operations consisting primarily of South Africa climate operations sold on November 1, 2016 and South America climate operations substantially exited during the fourth quarter of 2016. Segment Sales Three Months Ended 2017 2016 (Dollars in Millions) Electronics $ 810 $ 793 Other — 9 Total consolidated sales $ 810 $ 802 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 GAAP 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) the Company's credit agreements use measures similar to Adjusted EBITDA to measure compliance with certain covenants. Segment Adjusted EBITDA is summarized below: Three Months Ended 2017 2016 (Dollars in Millions) Electronics $ 101 $ 94 Other — (5 ) Adjusted EBITDA $ 101 $ 89 The reconciliation of Adjusted EBITDA to net income attributable to Visteon is as follows: Three Months Ended 2017 2016 (Dollars in Millions) Adjusted EBITDA $ 101 $ 89 Depreciation and amortization 19 21 Restructuring expense 1 10 Interest expense, net 5 2 Equity in net income of non-consolidated affiliates (2 ) — Other expense, net 1 4 Provision for income taxes 16 13 (Income) loss from discontinued operations, net of tax (8 ) 13 Net income attributable to non-controlling interests 4 4 Non-cash, stock-based compensation expense 2 2 Other — 1 Net income attributable to Visteon Corporation $ 63 $ 19 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Restricted Cash, Policy [Policy Text Block] | Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $3 million related to the Letter of Credit Facility, and $1 million related to cash collateral for other corporate purposes as of March 31, 2017 . |
Summary of Significant Accoun26
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Statement [Abstract] | |
Other (income) expense, net [Table Text Block] | Other Expense, Net: Other expense, net includes the following: Three Months Ended 2017 2016 (Dollars in Millions) Transformation initiatives $ — $ 3 Transaction exchange losses — 1 Loss on non-consolidated affiliate transaction 1 — $ 1 $ 4 |
Schedule of Product Warranty Liability [Table Text Block] | The following table provides a reconciliation of changes in the product warranty and recall claims liability: Three Months Ended March 31 2017 2016 (Dollars in Millions) Beginning balance $ 55 $ 38 Accruals for products shipped 6 4 Changes in estimates 3 (2 ) Specific cause actions — (1 ) Recoverable warranty/recalls — 1 Foreign currency 1 1 Settlements (13 ) (3 ) Ending balance $ 52 $ 38 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Discontinued operations are summarized as follows: Three Months Ended 2017 2016 (Dollars in Millions) Sales $ — $ 9 Cost of sales — 13 Gross margin — (4 ) Gain on Climate Transaction (7 ) — Loss and impairment on Interiors Divestiture — 1 Income (loss) from discontinued operations before income taxes 7 (5 ) (Benefit) provision for income taxes (1 ) 8 Net income (loss) from discontinued operations, net of tax, attributable to Visteon $ 8 $ (13 ) In connection with the Climate Transaction, the Company completed the repurchase of the electronics operations located in India during the first quarter of 2017 for $47 million , recognizing a $7 million gain on settlement of purchase commitment contingencies. The Company had previously consolidated the India operations based on the Company's controlling financial interest as a result of the repurchase obligation, operating control, and the obligation to fund losses or benefit from earnings. The Company continues to consolidate this entity based on the Company's voting control. During the three months ended March 31, 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. . |
Disposal group, including discontinued operations, held for sale table [Table Text Block] | . |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 $ 31 $ 9 $ 40 Expense 1 — 1 Utilization (8 ) (1 ) (9 ) March 31, 2017 $ 24 $ 8 $ 32 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following components: March 31 December 31 2017 2016 (Dollars in Millions) Raw materials $ 83 $ 83 Work-in-process 49 34 Finished products 30 34 $ 162 $ 151 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets are comprised of the following components: March 31 December 31 2017 2016 (Dollars in Millions) Recoverable taxes $ 71 $ 60 Prepaid assets and deposits 37 35 Joint venture receivables 32 39 Notes receivable 19 18 Contractually reimbursable engineering costs 6 7 Foreign currency hedges 6 6 Other 3 5 $ 174 $ 170 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other non-current assets are comprised of the following components: March 31 December 31 2017 2016 (Dollars in Millions) Deferred tax assets $ 46 $ 48 Recoverable taxes 35 34 Joint venture receivables 26 25 Long term notes receivable 10 10 Contractually reimbursable engineering costs 10 11 Other 20 18 $ 147 $ 146 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment [Table Text Block] | Property and equipment, net consists of the following: March 31 December 31 2017 2016 (Dollars in Millions) Land $ 14 $ 16 Buildings and improvements 72 65 Machinery, equipment and other 422 401 Construction in progress 50 54 558 536 Accumulated depreciation (230 ) (210 ) 328 326 Product tooling, net of amortization 18 19 $ 346 $ 345 |
Property, Plant and Equipment [Line Items] | |
Schedule of Depreciation and Amortization [Table Text Block] | Depreciation and amortization expenses for property and equipment are summarized as follows: Three Months Ended 2017 2016 (Dollars in Millions) Depreciation $ 15 $ 16 Amortization 1 1 $ 16 $ 17 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Intangible assets, net as of March 31, 2017 and December 31, 2016 , are comprised of the following: March 31, 2017 December 31, 2016 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 10 $ 41 $ 26 $ 15 $ 40 $ 25 $ 15 Customer related 9 83 27 56 83 25 58 Capitalized software development 3 5 — 5 4 — 4 Other 32 8 1 7 8 1 7 Subtotal 137 54 83 135 51 84 Indefinite-Lived: Goodwill 45 — 45 45 — 45 Total $ 182 $ 54 $ 128 $ 180 $ 51 $ 129 The Company recorded approximately $3 million and $4 million of amortization expense related to definite-lived intangible assets for the three months ended March 31, 2017 and 2016, respectively. The Company currently estimates annual amortization expense to be $13 million for 2017 , $14 million each year from 2018 through 2019, $11 million for 2020, and $10 million for 2021 . 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. There were no indicators of potential impairment during the three months ended March 31, 2017. A roll-forward of the carrying amounts of intangible assets is presented below: Definite-lived intangibles Indefinite-lived intangibles Developed Technology Customer Related Capitalized Software Development Other Goodwill Total (Dollars in Millions) December 31, 2016 $ 15 $ 58 $ 4 $ 7 $ 45 $ 129 Additions — — 1 — — 1 Foreign currency 1 — — — — 1 Amortization (1 ) (2 ) — — — (3 ) March 31, 2017 $ 15 $ 56 $ 5 $ 7 $ 45 $ 128 |
Goodwill and Intangible Assets Disclosure [Text Block] | Intangible assets, net as of March 31, 2017 and December 31, 2016 , are comprised of the following: March 31, 2017 December 31, 2016 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 10 $ 41 $ 26 $ 15 $ 40 $ 25 $ 15 Customer related 9 83 27 56 83 25 58 Capitalized software development 3 5 — 5 4 — 4 Other 32 8 1 7 8 1 7 Subtotal 137 54 83 135 51 84 Indefinite-Lived: Goodwill 45 — 45 45 — 45 Total $ 182 $ 54 $ 128 $ 180 $ 51 $ 129 The Company recorded approximately $3 million and $4 million of amortization expense related to definite-lived intangible assets for the three months ended March 31, 2017 and 2016, respectively. The Company currently estimates annual amortization expense to be $13 million for 2017 , $14 million each year from 2018 through 2019, $11 million for 2020, and $10 million for 2021 . 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. There were no indicators of potential impairment during the three months ended March 31, 2017. A roll-forward of the carrying amounts of intangible assets is presented below: Definite-lived intangibles Indefinite-lived intangibles Developed Technology Customer Related Capitalized Software Development Other Goodwill Total (Dollars in Millions) December 31, 2016 $ 15 $ 58 $ 4 $ 7 $ 45 $ 129 Additions — — 1 — — 1 Foreign currency 1 — — — — 1 Amortization (1 ) (2 ) — — — (3 ) March 31, 2017 $ 15 $ 56 $ 5 $ 7 $ 45 $ 128 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities [Abstract] | |
Other Current Liabilities [Table Text Block] | Other current liabilities are summarized as follows: March 31 December 31 2017 2016 (Dollars in Millions) Product warranty and recall accruals $ 38 $ 43 Restructuring reserves 32 40 Contribution payable 32 31 Rent and royalties 20 23 Income taxes payable 18 22 Dividends payable 17 5 Distribution payable 14 15 Joint venture payables 10 22 Deferred income 10 14 Non-income taxes payable 5 8 Foreign currency hedges 2 7 Electronics operations repurchase commitment — 50 Information technology separation and service obligations — 2 Other 26 27 $ 224 $ 309 |
Other Noncurrent Liabilities [Table Text Block] | Other non-current liabilities are summarized as follows: March 31 December 31 2017 2016 (Dollars in Millions) Deferred income $ 18 $ 18 Product warranty and recall accruals 14 12 Income tax reserves 13 14 Non-income tax reserves 7 10 Other 14 15 $ 66 $ 69 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The Company’s short and long-term debt consists of the following: March 31 December 31 2017 2016 (Dollars in Millions) Short-Term Debt: Current portion of long-term debt $ 1 $ 3 Short-term borrowings 48 33 $ 49 $ 36 Long-Term Debt: Term debt facility $ 347 $ 346 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and 2016 were as follows: U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 (Dollars in Millions) Costs Recognized in Income: Service cost $ — $ — $ — $ 1 Interest cost 7 7 2 2 Expected return on plan assets (10 ) (10 ) (2 ) (2 ) Net pension (income) expense $ (3 ) $ (3 ) $ — $ 1 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Unrecognized Tax Benefits [Table Text Block] | Three Months Ended (Dollars in Millions) Beginning balance $ 35 Tax positions related to current period: Additions 1 Tax positions related to prior periods: Reductions (18 ) Ending balance $ 18 |
Stock-holders' Equity and Non-c
Stock-holders' Equity and Non-controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Changes in equity for the three months ended March 31, 2017 and 2016 are as follows: 2017 2016 Visteon NCI Total Visteon NCI Total (Dollars in Millions) Three Months Ended March 31 Beginning balance $ 586 $ 138 $ 724 $ 1,057 $ 142 $ 1,199 Net income from continuing operations 55 4 59 32 4 36 Net income (loss) from discontinued operations 8 — 8 (13 ) — (13 ) Net income 63 4 67 19 4 23 Other comprehensive income (loss) Foreign currency translation adjustments 18 1 19 23 — 23 Unrealized hedging gain (loss) 4 — 4 (4 ) — (4 ) Total other comprehensive income (loss) 22 1 23 19 — 19 Stock-based compensation, net 2 — 2 (9 ) — (9 ) Share repurchase (125 ) — (125 ) (500 ) — (500 ) Dividends to non-controlling interests — (11 ) (11 ) — — — Ending balance $ 548 $ 132 $ 680 $ 586 $ 146 $ 732 |
Schedule of Non-controlling Interests [Table Text Block] | Non-controlling interests in the Visteon Corporation economic entity are as follows: March 31 December 31 2017 2016 (Dollars in Millions) Yanfeng Visteon Automotive Electronics Co., Ltd. $ 89 $ 97 Shanghai Visteon Automotive Electronics, Co., Ltd. 41 39 Other 2 2 $ 132 $ 138 |
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 2017 2016 (Dollars in Millions) Changes in AOCI: Beginning balance $ (233 ) $ (190 ) Other comprehensive income (loss) before reclassification, net of tax 20 21 Amounts reclassified from AOCI 2 (2 ) Ending balance $ (211 ) $ (171 ) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (163 ) $ (159 ) Other comprehensive income before reclassification, net of tax (a) 19 29 Ending balance (144 ) (130 ) Net investment hedge Beginning balance 10 4 Other comprehensive loss before reclassification, net of tax (a) (1 ) (6 ) Ending balance 9 (2) Benefit plans Beginning balance (75 ) (36 ) Ending balance (75 ) (36 ) Unrealized hedging (loss) gain Beginning balance (5 ) 1 Other comprehensive income (loss) before reclassification, net of tax (b) 2 (2 ) Amounts reclassified from AOCI 2 (2 ) Ending balance (1 ) (3 ) Total AOCI $ (211 ) $ (171 ) (a) There were no income tax effects for the three month periods ending March 31, 2017 and 2016, due to the recording of valuation allowance. (b) Net tax tax expense of $1 million and tax benefit of $1 million are related to unrealized hedging (loss) gain for both the three months ended March 31, 2017 and 2016 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 (In Millions, Except Per Share Amounts) Numerator: Net income from continuing operations attributable to Visteon $ 55 $ 32 Income (loss) from discontinued operations, net of tax 8 (13 ) Net income attributable to Visteon $ 63 $ 19 Denominator: Average common stock outstanding - basic 32.5 38.1 Dilutive effect of performance based share units and other 0.5 0.4 Diluted shares 33.0 38.5 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon: Continuing operations $ 1.69 $ 0.84 Discontinued operations 0.25 (0.34 ) $ 1.94 $ 0.50 Diluted earnings (loss) per share attributable to Visteon: Continuing operations $ 1.67 $ 0.83 Discontinued operations 0.24 (0.34 ) $ 1.91 $ 0.49 |
Fair Value Measurements and F39
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | n |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Gains and losses on derivative financial instruments for the three months ended March 31, 2017 and 2016 are as follows: Recorded (Loss) Income into AOCI, net of tax Reclassified from AOCI into (Income) Loss Recorded in (Income) Loss 2017 2016 2017 2016 2017 2016 (Dollars in Millions) Three Months Ended March 31 Foreign currency risk - Cost of sales Cash flow hedges $ 2 $ 1 $ 2 $ (2 ) $ — $ — Net investment hedges (1 ) (6 ) — — — — Non-designated cash flow hedges — — — — (1 ) — Interest rate risk - Interest expense, net: Interest rate swap — (3 ) — — — — $ 1 $ (8 ) $ 2 $ (2 ) $ (1 ) $ — |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loss Contingencies [Line Items] | |
Schedule of Product Warranty Liability [Table Text Block] | The following table provides a reconciliation of changes in the product warranty and recall claims liability: Three Months Ended March 31 2017 2016 (Dollars in Millions) Beginning balance $ 55 $ 38 Accruals for products shipped 6 4 Changes in estimates 3 (2 ) Specific cause actions — (1 ) Recoverable warranty/recalls — 1 Foreign currency 1 1 Settlements (13 ) (3 ) Ending balance $ 52 $ 38 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Segment Sales Three Months Ended 2017 2016 (Dollars in Millions) Electronics $ 810 $ 793 Other — 9 Total consolidated sales $ 810 $ 802 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment Adjusted EBITDA is summarized below: Three Months Ended 2017 2016 (Dollars in Millions) Electronics $ 101 $ 94 Other — (5 ) Adjusted EBITDA $ 101 $ 89 |
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 2017 2016 (Dollars in Millions) Adjusted EBITDA $ 101 $ 89 Depreciation and amortization 19 21 Restructuring expense 1 10 Interest expense, net 5 2 Equity in net income of non-consolidated affiliates (2 ) — Other expense, net 1 4 Provision for income taxes 16 13 (Income) loss from discontinued operations, net of tax (8 ) 13 Net income attributable to non-controlling interests 4 4 Non-cash, stock-based compensation expense 2 2 Other — 1 Net income attributable to Visteon Corporation $ 63 $ 19 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] |
Description of Business (Detail
Description of Business (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Other Commitment | $ 32 | $ 31 | ||
Entity Number of Employees | 10,000 | |||
HVCC [Member] | ||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | |||
Germany Interiors Operations [Member] | ||||
Payment associated with business disposal | $ 141 | |||
Disposal Group, Including Discontinued Operation, Assets of Disposal Group | 27 | |||
Disposal Group, Including Discontinued Operation, Liabilities of Disposal Group | $ 198 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Cost Method Investments | $ 1 | $ 5 | |
Debt Issuance Cost | 2 | ||
Due to Related Parties, Noncurrent | 7 | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 76 | 81 | |
Transformation Costs | 0 | $ 3 | |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 1 | 0 | |
Other expense, net | 1 | 4 | |
Restricted cash | 4 | 4 | |
Equity in net income of (loss) non-consolidated affiliates | (2) | 0 | |
Investments in non-consolidated affiliates | 37 | 45 | |
Equity Method Investments | 36 | 40 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Accruals for products shipped | 6 | 4 | |
Product Warranty Accrual, Preexisting, Increase (Decrease) | 3 | (2) | |
Product warranty accrual, recoverable warranty or recalls | 1 | ||
Product warranty accrual, specific action increase (decrease) | (1) | ||
Foreign currency translation | 1 | 1 | |
Settlements | (13) | (3) | |
Product Warranty Accrual, Ending Balance | 52 | 38 | |
Due from Related Parties, Current | 12 | ||
Due from Related Parties, Noncurrent | 22 | ||
Guarantor Obligations, Current Carrying Value | 18 | $ 22 | |
Gain on Sale of Investments | 1 | ||
Cash Collateral for Letter of Credit Facility [Member] | |||
Restricted cash | 3 | ||
Cash Collateral For Other Corporate Purposes [Member] | |||
Restricted cash | 1 | ||
Cost-method Investments [Member] | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Proceeds from Sale of Investment Projects | 3 | ||
YFVIC [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Due to Related Parties, Noncurrent | $ 14 | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Due from Related Parties, Current | 15 | ||
Yanfeng Visteon Electronics (China) Investment Company [Member] | |||
Investments in non-consolidated affiliates | 24 | $ 22 | |
YFVE [Member] | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Due from Related Parties, Noncurrent | 22 | ||
HVCC [Member] | |||
Foreign Currency Transaction Gain (Loss), Realized | 0 | ||
Derivative, Gain (Loss) on Derivative, Net | $ 1 | ||
Equity Method Investments [Member] | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Proceeds from Sale of Investment Projects | $ 7 |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Business Combination, Consideration Transferred | $ 17 |
Business Combination, Contingent Consideration, Liability | 2 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 5 |
Acquisition Costs, Period Cost | 1 |
Business Combination, Acquired Receivables, Fair Value | 1 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 7 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 12 |
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Goodwill | 3 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 20 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 3 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Payments to Acquire Businesses and Interest in Affiliates | $ 47 | $ 0 | |
Income Tax Expense (Benefit) | 16 | 13 | |
Payments for Restructuring | 9 | ||
Restructuring Reserve, Current | 32 | 32 | $ 40 |
Information technology separation and service obligations | 0 | $ (2) | |
Sales | 0 | 9 | |
Cost of sales | 0 | 13 | |
Gross margin | 0 | (4) | |
Gain (loss) on Climate Transaction & Interiors Divestiture | 7 | 0 | |
Income (loss) from discontinued operations before income taxes | 7 | (5) | |
Provision for income taxes | (1) | 8 | |
(Loss) income from discontinued operations, net of tax | 8 | (13) | |
Losses on divestitures and impairments | 1 | 1 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 8 | (13) | |
Restructuring Charges | 28 | 1 | |
HVCC [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income Tax Expense (Benefit) | 8 | ||
Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Asset Impairment Charges | 0 | ||
Losses on divestitures and impairments | (1) | ||
2016 Electronics Restructuring Program [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Restructuring Reserve, Current | 1 | ||
Restructuring Charges | $ 11 | ||
2014 Electronics Restructuring Program [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Restructuring Reserve, Current | $ 2 |
Non-Consolidated Affiliates (De
Non-Consolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loan guarantee amount | $ 18 | ||
Due to Related Parties, Noncurrent | 7 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 37 | $ 45 | |
Due from Related Parties, Current | 12 | ||
Due from Related Parties, Noncurrent | 22 | ||
Guarantor Obligations, Current Carrying Value | 18 | 22 | |
Loss Contingency, Estimate of Possible Loss | 76 | 81 | |
Cost-method Investments, Realized Gains | 1 | ||
Equity in net income of (loss) non-consolidated affiliates | 2 | $ 0 | |
Equity in loss non-consolidated affiliates | $ 1 | ||
Equity Method Investments | 36 | 40 | |
Cost Method Investments | 1 | $ 5 | |
YFVIC [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Due to Related Parties, Noncurrent | $ 14 | ||
Due from Related Parties, Current | 15 | ||
Yanfeng Visteon Electronics (China) Investment Company [Member] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 24 | $ 22 | |
YFVE [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||
Due from Related Parties, Noncurrent | 22 | ||
Equity Method Investments [Member] | |||
Payments for (Proceeds from) Investments | 7 | ||
Cost-method Investments [Member] | |||
Payments for (Proceeds from) Investments | $ 3 |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net of reversals | $ 1 | $ 10 | |
Restructuring expense | 28 | 1 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Beginning Balance | 40 | ||
Utilization | (9) | ||
Restructuring Reserve, Current, Ending Balance | 32 | 32 | $ 40 |
2016 Engineering & SGA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 1 | ||
Restructuring and Related Cost, Description | 45 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 17 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 250 | ||
2016 Electronics Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 11 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 1 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 90 | ||
2015 Electronics Restructuring Program [Member] [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 5 | ||
2014 Electronics Restructuring Program [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 2 | ||
2016 Other Restructuring Program [Member] [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 1 | ||
2012 Restructuring Action [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 5 | ||
Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 1 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Beginning Balance | 31 | ||
Utilization | (8) | ||
Restructuring Reserve, Current, Ending Balance | 24 | $ 31 | |
Other Restructuring [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Beginning Balance | $ 9 | ||
Utilization | (1) | ||
Restructuring Reserve, Current, Ending Balance | $ 8 | $ 9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory, Raw Materials, Net of Reserves | $ 83 | $ 83 |
Inventory, Work in Process, Net of Reserves | 49 | 34 |
Inventories, net | 162 | 151 |
Inventory, Finished Goods, Net of Reserves | $ 30 | $ 34 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Other Assets [Abstract] | ||
Recoverable Taxes | $ 71 | $ 60 |
Prepaid assets and deposits | 37 | 35 |
Joint venture receivables | 32 | 39 |
Notes Receivable, Related Parties, Current | 19 | 18 |
Contractual engineering cost recoveries, current | 6 | 7 |
Hedging Assets, Current | 6 | 6 |
Other | 3 | 5 |
Other Assets, Current | 174 | 170 |
Deferred tax assets | 46 | 48 |
Recoverable taxes, non current | 35 | 34 |
Notes Receivable, Related Parties, Noncurrent | 26 | 25 |
Notes, Loans and Financing Receivable, Gross, Noncurrent | 10 | 10 |
Contractual engineering cost recoveries, non-current | 10 | 11 |
Other | 20 | 18 |
Other Assets, Noncurrent | 147 | $ 146 |
Reimbursement of Engineering costs in current year | 5 | |
Reimbursement of Engineering costs in following year | 3 | |
Reimbursement of Engineering costs 2 years following and after | $ 8 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 14 | $ 16 | |
Buildings and improvements | 72 | 65 | |
Machinery, equipment and other | 422 | 401 | |
Construction in progress | 50 | 54 | |
Total property and equipment | 558 | 536 | |
Accumulated depreciation | (230) | (210) | |
Property and equipment, net, before product tooling | 328 | 326 | |
Property and equipment, net | 346 | 345 | |
Depreciation | 15 | $ 16 | |
Depreciation and Amortization Expense | $ 16 | 17 | |
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 | $ 18 | $ 19 | |
Amortization | $ 1 | $ 1 | |
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 | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets Including Goodwill Translation Adjustment | $ 1 | ||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 137 | $ 135 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 54 | 51 | |
Net Carrying Value | 83 | 84 | |
Goodwill | 45 | ||
Goodwill and Indefinite-lived Intangible Assets, Net | 45 | 45 | |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Goodwill, Gross | 45 | 45 | |
Intangible Assets, Gross (Including Goodwill) | 182 | 180 | |
Intangible Assets Net Including Goodwill | 128 | 129 | |
Amortization expense | (3) | $ (4) | |
Future Amortization Expense, Year One | 13 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 14 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 14 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 11 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 10 | ||
Developed Technology Rights [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Finite-Lived Intangible Assets, Gross | $ 41 | 40 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 26 | 25 | |
Net Carrying Value | 15 | 15 | |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | (1) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 1 | ||
Customer Relationships [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 9 years | ||
Finite-Lived Intangible Assets, Gross | $ 83 | 83 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 27 | 25 | |
Net Carrying Value | 56 | 58 | |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | (2) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 0 | ||
Software and Software Development Costs [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Finite-Lived Intangible Assets, Gross | $ 5 | 4 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | ||
Net Carrying Value | 5 | 4 | |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Capitalized Software Development Costs for Software Sold to Customers | 1 | ||
Amortization expense | 0 | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 0 | ||
Other [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 32 years | ||
Finite-Lived Intangible Assets, Gross | $ 8 | 8 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1 | 1 | |
Net Carrying Value | 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 | |
Goodwill [Member] | |||
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | 0 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | $ 0 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Other Liabilities [Abstract] | ||||
Product warranty and recall accruals | $ 38 | $ 43 | ||
Restructuring Reserve | 32 | 40 | ||
Other Commitment | 32 | 31 | ||
Rent and royalties | 20 | 23 | ||
Income taxes payable | 18 | 22 | ||
Dividends Payable, Current | 17 | 5 | ||
Distribution Payable | 14 | 15 | ||
Joint venture payables | 10 | 22 | ||
Deferred income | 10 | 14 | ||
Non-income taxes payable | 5 | 8 | ||
Foreign currency hedges | 2 | 7 | ||
Assets Sold under Agreements to Repurchase, Repurchase Liability | 0 | 50 | ||
Information technology separation and service obligations | 0 | 2 | ||
Other | 26 | 27 | ||
Other Liabilities, Current | $ 224 | 309 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Dividends Payable, Date to be Paid | Jan. 22, 2016 | |||
Payments of Capital Distribution | $ 1 | $ 1,736 | 1,740 | |
Dividends, Share-based Compensation | 14 | |||
Deferred income | 18 | 18 | ||
Product warranty and recall accruals | 14 | 12 | ||
Income tax reserves | 13 | 14 | ||
Non-income tax reserves | 7 | 10 | ||
Other | 14 | 15 | ||
Other Liabilities, Noncurrent | $ 66 | 69 | ||
Germany Interiors Operations [Member] | ||||
Other Liabilities [Abstract] | ||||
Disposal Group, Including Discontinued Operation, Liabilities | 198 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Payments for (Proceeds from) Productive Assets | $ 141 | |||
Disposal Group, Including Discontinued Operation, Assets | $ 27 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2016 | Mar. 24, 2017 | Jun. 12, 2015 | Apr. 09, 2014 | |
Debt Instrument [Line Items] | ||||||
Debt Issuance Cost | $ 2 | |||||
Short-term debt [Abstract] | ||||||
Current portion of long-term debt | 1 | $ 3 | ||||
Other - short-term | 48 | 33 | ||||
Short-term debt | 49 | 36 | ||||
Long-term debt | ||||||
Long-term debt | 347 | 346 | ||||
Interest Expense, Debt | 1 | |||||
Amended LOC Agreement Facility Capacity | $ 15 | |||||
LOC Collateral Percentage for draws in the U.S. dollars | 103.00% | |||||
LOC collateral percentage for draws in non-U.S. currencies | 110.00% | |||||
Letters of Credit Outstanding, Amount | $ 3 | |||||
LOC Facility issued by local affiliates [Member] | ||||||
Long-term debt | ||||||
Letters of Credit Outstanding, Amount | 17 | |||||
Revolving Credit Facility [Member] | ||||||
Long-term debt | ||||||
Debt Instrument, face amount | $ 300 | $ 200 | ||||
Term Loan [Member] | ||||||
Long-term debt | ||||||
Unsecured long-term debt, non-current | $ 347 | $ 346 | ||||
Debt Instrument, face amount | $ 350 | $ 350 | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.50% | |||||
Term loan, required periodic payment | 1.75% | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 2.25% | |||||
Debt Instrument, Maturity Date | Mar. 24, 2024 | |||||
Affiliated Entity [Member] | ||||||
Long-term debt | ||||||
Line of Credit Facility, Capacity Available for Trade Purchases | $ 17 | |||||
Revolving Credit Facility [Member] | ||||||
Long-term debt | ||||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 2.50% | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 75 | |||||
borrowing capacity under swing line advances | $ 20 | |||||
Debt Instrument, Maturity Date | Mar. 24, 2022 | |||||
Maximum [Member] | ||||||
Long-term debt | ||||||
Financial maintenance covenant | 3 | |||||
Minimum [Member] | ||||||
Long-term debt | ||||||
Financial maintenance covenant | 1 | |||||
Domestic Base Rate [Member] | ||||||
Long-term debt | ||||||
Debt Instrument, Interest Rate Terms | 0.75% | |||||
interest rate margin applied to the Eurodollar Rate | 3.00% | |||||
Domestic Base Rate [Member] | Maximum [Member] | ||||||
Long-term debt | ||||||
Applicable rate range | 2.75% | |||||
Domestic Base Rate [Member] | Minimum [Member] | ||||||
Long-term debt | ||||||
Applicable rate range | 2.00% |
Benefit Expenses (Details)
Benefit Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | |
United States Pension Plan of US Entity [Member] | |||
Benefit Expenses | |||
Service cost | $ 0 | $ 0 | |
Interest cost | 7 | 7 | |
Expected return on plan assets | (10) | (10) | |
Net pension (income) expense | (3) | (3) | |
Defined Benefit Plan, Contributions by Employer | 1 | ||
Foreign Pension Plan [Member] | |||
Benefit Expenses | |||
Service cost | 1 | ||
Interest cost | 2 | 2 | |
Expected return on plan assets | (2) | (2) | |
Net pension (income) expense | $ 1 | ||
Defined Benefit Plan, Contributions by Employer | $ 1 | ||
Scenario, Forecast [Member] | |||
Benefit Expenses | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 7 |
Provision For Income Taxes (Det
Provision For Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Provision for income taxes | $ 16 | $ 13 |
Tax Adjustments, Settlements, and Unusual Provisions | 16 | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 75 | 49 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 2 | 2 |
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 | $ (3) | $ (7) |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2016 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 10 | $ 12 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 4 | $ 4 | ||
Tax Adjustments, Settlements, and Unusual Provisions | 16 | |||
Reconciiation of Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized Tax Benefits Beginning balance | 35 | |||
Tax positions related to current periods | ||||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 1 | |||
Tax positions related to prior periods | ||||
Unrecognized Tax Benefits Ending balance | 18 | |||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 18 | |||
Liability for Uncertain Tax Positions, Noncurrent | 13 | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 2 | $ 2 | ||
Visteon Sistemas Automotivos [Member] | ||||
Tax positions related to prior periods | ||||
Tax audit appeals payment | 16 | $ 15 | ||
Worldwide [Member] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 2 | |||
Tax positions related to prior periods | ||||
Tax audit appeals and refund claims receivable | $ 19 |
Stockholders' Equity and Non-57
Stockholders' Equity and Non-controlling Interests (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders' equity beginning balance | $ 724 | $ 1,199 | ||
Net income (loss) from continuing operations | $ 59 | $ 36 | ||
(Loss) income from discontinued operations, net of tax | 8 | (13) | ||
Net income (loss) | 67 | 23 | ||
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 19 | 23 | ||
Unrealized hedging (loss) gain | 4 | (4) | ||
Other Comprehensive Income (Loss), Net of Tax | 23 | 19 | ||
Stock-based compensation, net | 2 | (9) | ||
Share repurchase | (125) | (500) | ||
Dividends to non-controlling interests | (11) | 0 | ||
Stockholders' equity ending balance | 680 | 732 | 724 | |
Payments for Repurchase of Common Stock | 125 | 500 | 500 | |
Stock Repurchase Program, Authorized Amount | 400 | |||
Non-controlling interests | 132 | 138 | ||
Accumulated other comprehensive income (loss) | (211) | (171) | (233) | (190) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 20 | 21 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2 | (2) | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1 | (1) | ||
YFVE [Member] | ||||
Other comprehensive income (loss) | ||||
Non-controlling interests | 89 | 97 | ||
SVAE - Shanghai Electronics [Member] | ||||
Other comprehensive income (loss) | ||||
Non-controlling interests | 41 | 39 | ||
Other Entity [Member] | ||||
Other comprehensive income (loss) | ||||
Non-controlling interests | 2 | 2 | ||
Parent [Member] | ||||
Stockholders' equity beginning balance | 586 | 1,057 | ||
Net income (loss) from continuing operations | 55 | 32 | ||
(Loss) income from discontinued operations, net of tax | 8 | (13) | ||
Net income (loss) | 63 | 19 | ||
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 18 | 23 | ||
Unrealized hedging (loss) gain | 4 | (4) | ||
Other Comprehensive Income (Loss), Net of Tax | 22 | 19 | ||
Stock-based compensation, net | 2 | (9) | ||
Share repurchase | (125) | (500) | ||
Dividends to non-controlling interests | 0 | 0 | ||
Stockholders' equity ending balance | 548 | 586 | ||
Noncontrolling Interest [Member] | ||||
Stockholders' equity beginning balance | 138 | 142 | ||
Net income (loss) from continuing operations | 4 | 4 | ||
(Loss) income from discontinued operations, net of tax | 0 | 0 | ||
Net income (loss) | 4 | 4 | ||
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 1 | 0 | ||
Unrealized hedging (loss) gain | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 1 | 0 | ||
Stock-based compensation, net | 0 | 0 | ||
Share repurchase | 0 | 0 | ||
Dividends to non-controlling interests | (11) | 0 | ||
Stockholders' equity ending balance | 132 | 146 | ||
Accumulated Translation Adjustment [Member] | ||||
Other comprehensive income (loss) | ||||
Accumulated other comprehensive income (loss) | (144) | (130) | (163) | (159) |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 9 | (2) | 10 | 4 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 19 | 29 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Other comprehensive income (loss) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (1) | (6) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Other comprehensive income (loss) | ||||
Accumulated other comprehensive income (loss) | (75) | (36) | (75) | (36) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Other comprehensive income (loss) | ||||
Accumulated other comprehensive income (loss) | (1) | (3) | $ (5) | $ 1 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2 | (2) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 2 | $ (2) | ||
10b5-1 Share Repurchase Program [Member] | ||||
Other comprehensive income (loss) | ||||
Stock Repurchased During Period, Shares | 1,062,022 | 7,190,506 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 94.16 | $ 69.48 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net income (loss) from continuing operations attributable to Visteon | $ 55 | $ 32 |
Net income (loss) from discontinued operations, net of tax | 8 | (13) |
Net income (loss) attributable to Visteon | $ 63 | $ 19 |
Denominator: | ||
Average common stock outstanding - basic | 32.5 | 38.1 |
Dilutive effect of warrants and PSUs | 0.5 | 0.4 |
Diluted shares | 33 | 38.5 |
Basic earnings (loss) per share | ||
Continuing operations | $ 1.69 | $ 0.84 |
Discontinued operations | 0.25 | (0.34) |
Basic | 1.94 | 0.50 |
Diluted earnings (loss) per share | ||
Continuing operations | 1.67 | 0.83 |
Discontinued operations | 0.24 | (0.34) |
Diluted | $ 1.91 | $ 0.49 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 401 | $ 389 | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | (1) | ||
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 153 | 169 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 1 | $ (8) | |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (1) | 0 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 2 | (2) | |
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 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 121 | 138 | |
Designated as Hedging Instrument [Member] | Derivative Financial Instruments, Assets [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Fair Value, Net | 1 | 6 | |
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 | 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 | 2 | (2) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 150 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | (3) | |
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 Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 2 | ||
Derivative Liability | 1 | 1 | |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 150 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (1) | (6) | |
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 | $ 5 | $ 6 |
Derivatives Balance Sheet Locat
Derivatives Balance Sheet Location (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 153 | $ 169 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 121 | 138 |
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 5 | $ 6 |
Derivative, Notional Amount | $ 150 |
Derivatives Income Statement Lo
Derivatives Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 1 | $ (8) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 2 | (2) |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (1) | 0 |
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 | 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 2 | (2) |
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 | (1) | (6) |
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] | 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 | 0 | (3) |
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 |
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 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 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) | $ 0 |
Credit Risk (Details)
Credit Risk (Details) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Ford And Affiliates [Member] | ||
Concentration Risk [Line Items] | ||
Entity-wide revenue, major customer, percentage | 16.00% | 16.00% |
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 | 10.00% | 10.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2003 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||||||
Product warranty accrual, including held for sale | $ 55,000,000 | $ 38,000,000 | |||||
Amount of Bonds Issued by the Charter Township of Van Buren, Michigan | $ 28,000,000 | ||||||
Sales | $ 810,000,000 | $ 802,000,000 | |||||
Loss Contingency, Estimate of Possible Loss | 76,000,000 | 81,000,000 | |||||
Business Combination, Consideration Transferred | 17,000,000 | ||||||
Business Combination, Contingent Consideration, Liability | 2,000,000 | ||||||
Loan guarantee amount | 18,000,000 | ||||||
Accrual for Environmental Loss Contingencies | $ 1,000,000 | ||||||
Standard and Extended Product Warranty Accrual, Period Increase (Decrease) | 6,000,000 | 4,000,000 | |||||
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 3,000,000 | (2,000,000) | |||||
Product warranty accrual, specific action increase (decrease) | (1,000,000) | ||||||
Product warranty accrual, recoverable warranty or recalls | 1,000,000 | ||||||
Standard and Extended Product Warranty Accrual, Foreign Currency Translation Gain (Loss) | 1,000,000 | 1,000,000 | |||||
Standard and Extended Product Warranty Accrual, Decrease for Payments | 13,000,000 | 3,000,000 | |||||
Standard and Extended Product Warranty Accrual | 52,000,000 | $ 38,000,000 | |||||
Minimum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated Shortfall in Tax Revenues of the Township | $ 25,000,000 | ||||||
Maximum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated Shortfall in Tax Revenues of the Township | $ 36,000,000 | ||||||
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 | 6,000,000 | ||||||
HVCC [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantee for Divested Entities Lease Payments | 7,000,000 | ||||||
Pending Litigation [Member] | BRAZIL | Affiliated Entity [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss Contingency Accrual, at Carrying Value | 10,000,000 | ||||||
Loss Contingency, Estimate of Possible Loss | 59,000,000 | ||||||
Pending Litigation [Member] | ARGENTINA | Affiliated Entity [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss Contingency Accrual, at Carrying Value | 5,000,000 | ||||||
Loss Contingency, Estimate of Possible Loss | $ 34,000,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 810 | $ 802 | |
Adjusted EBITDA for Total Company | 101 | 89 | |
Depreciation and Amortization Expenses for Continuing Operations | 19 | 21 | |
Restructuring charges, net of reversals | 1 | 10 | |
Interest expense, net | 5 | 2 | |
Equity in net income of (loss) non-consolidated affiliates | (2) | 0 | |
Other expense, net | 1 | 4 | |
Provision for income taxes | 16 | 13 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (8) | 13 | |
Net income attributable to non-controlling interests | 4 | 4 | |
Non-cash, stock-based compensation expense | 2 | 2 | |
Other Nonoperating Expense | 0 | 1 | |
Net income (loss) attributable to Visteon Corporation | 63 | 19 | |
Assets | 2,238 | $ 2,373 | |
Operating Segments [Member] | Electronics [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 810 | 793 | |
Adjusted EBITDA for Total Company | 101 | 94 | |
Operating Segments [Member] | Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 9 | ||
Adjusted EBITDA for Total Company | $ 0 | $ (5) |