Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2019 | Oct. 18, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | VISTEON CORP | |
Entity Central Index Key | 0001111335 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 28,273,189 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | $ 737 | $ 814 |
Cost of Goods and Services Sold | (671) | (685) |
Gross margin | 66 | 129 |
Selling, general and administrative expenses | (57) | (44) |
Restructuring charges, net of reversals | (1) | (5) |
Interest expense | (3) | (4) |
Interest income | 1 | 2 |
Equity in net income of (loss) non-consolidated affiliates | 3 | 3 |
Other expense, net | 2 | 7 |
Income (loss) before income taxes | 11 | 88 |
Provision for income taxes | 5 | (21) |
Net income (loss) from continuing operations | 16 | 67 |
(Loss) income from discontinued operations, net of tax | 0 | 2 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 2 |
Net income (loss) | 16 | 69 |
Net income attributable to non-controlling interests | (2) | (4) |
Net income (loss) attributable to Visteon Corporation | $ 14 | $ 65 |
Basic earnings (loss) per share: | ||
Continuing operations | $ 0.50 | $ 2.07 |
Discontinued operations | 0 | 0.07 |
Basic earnings (loss) attributable to Visteon Corporation | 0.50 | 2.14 |
Diluted earnings (loss) per share | ||
Continuing operations | 0.49 | 2.05 |
Discontinued operations | 0 | 0.06 |
Diluted earnings (loss) attributable to Visteon Corporation | $ 0.49 | $ 2.11 |
Comprehensive income: | ||
Comprehensive income (loss) | $ 21 | $ 92 |
Comprehensive income (loss) attributable to Visteon Corporation | $ 18 | $ 82 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and equivalents | $ 432 | $ 463 |
Restricted cash | 3 | 4 |
Accounts receivable, net | 484 | 486 |
Inventories, net | 195 | 184 |
Other current assets | 169 | 159 |
Total current assets | 1,283 | 1,296 |
Property and equipment, net | 406 | 397 |
Intangible assets, net | 128 | 129 |
Operating Lease, Right-of-Use Asset | 167 | 0 |
Investments in non-consolidated affiliates | 45 | 42 |
Other non-current assets | 153 | 143 |
Total assets | 2,182 | 2,007 |
LIABILITIES AND EQUITY | ||
Short-term debt, including current portion of long-term debt | 56 | 57 |
Accounts payable | 440 | 436 |
Accrued employee liabilities | 67 | 67 |
Operating Lease, Liability, Current | 28 | 0 |
Other current liabilities | 148 | 161 |
Total current liabilities | 739 | 721 |
Long-term debt | 348 | 348 |
Employee benefits | 255 | 257 |
Operating Lease, Liability, Noncurrent | 142 | 0 |
Deferred tax liabilities | 24 | 23 |
Other non-current liabilities | 69 | 76 |
Stockholders' equity: | ||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of March 31, 2019 and December 31, 2018) | 0 | 0 |
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 28 million shares outstanding as of March 31, 2019 and December 31, 2018) | 1 | 1 |
Additional paid-in capital | 1,332 | 1,335 |
Retained earnings | 1,623 | 1,609 |
Accumulated other comprehensive loss | (212) | (216) |
Treasury stock | (2,257) | (2,264) |
Total Visteon Corporation stockholders' equity | 487 | 465 |
Non-controlling interests | 118 | 117 |
Total equity | 605 | 582 |
Total liabilities and equity | $ 2,182 | $ 2,007 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 30 | 31 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash and Cash Equivalents, at Carrying Value | $ 435 | $ 526 |
Operating Activities | ||
Net income (loss) | (16) | (69) |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation and amortization | 25 | 22 |
Equity in net income of non-consolidated affiliates, net of dividends remitted | (3) | (3) |
Non-cash stock-based compensation | 5 | (6) |
Net, operating leases | 3 | 0 |
Gains (losses) on business acquisitions and divestitures | 0 | 3 |
Changes in assets and liabilities: | ||
Accounts receivable | 3 | 48 |
Inventories | (11) | (6) |
Accounts payable | 9 | 30 |
Other assets and other liabilities | (43) | (70) |
Net cash provided from operating activities | 4 | (81) |
Investing Activities | ||
Payments to acquire property, plant, equipment, and intangible assets | (37) | (44) |
Loans to non-consolidated affiliates, net of repayments | 2 | 2 |
Payments for (Proceeds from) Other Investing Activities | 1 | 1 |
Net cash provided from (used by) investing activities | (34) | (41) |
Financing Activities | ||
Short-term debt, net | (2) | (12) |
Payments for Repurchase of Common Stock | 0 | (200) |
Distribution payments | 0 | (14) |
Proceeds from (Payments for) Other Financing Activities | 0 | (4) |
Net cash used by financing activities | (2) | (230) |
Net increase (decrease) in cash and equivalents | (32) | (183) |
Cash and restricted cash at beginning of the period | 467 | 709 |
Effect of exchange rate changes on cash | $ 0 | $ 7 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) Statement - USD ($) $ in Millions | Total | Noncontrolling Interest [Member] | Parent [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Additional Paid-in Capital [Member] | Common Stock [Member] |
Total equity | $ 761 | $ 124 | $ 637 | $ (1,974) | $ (174) | $ 1,445 | $ 1,339 | $ 1 |
Net income (loss) | 69 | 4 | 65 | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 23 | 6 | 17 | 0 | 17 | 0 | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | (13) | 0 | (13) | 5 | 0 | 0 | (18) | 0 |
Payments for Repurchase of Common Stock | (200) | 0 | (200) | (170) | 0 | 0 | 30 | 0 |
Dividends to non-controlling interests | (25) | (25) | 0 | 0 | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Visteon Corporation | 65 | 65 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 109 | |||||||
Total equity | 615 | 506 | (2,139) | (157) | 1,510 | 1,291 | 1 | |
Stockholders' Equity Attributable to Noncontrolling Interest | 117 | |||||||
Total equity | 582 | 117 | 465 | (2,264) | (216) | 1,609 | 1,335 | 1 |
Net income (loss) | 16 | 2 | 14 | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 5 | 1 | 4 | 0 | 4 | 0 | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2 | 0 | 2 | 7 | 0 | 0 | (5) | 0 |
Noncontrolling Interest, Increase from Business Combination | 0 | (2) | 2 | 0 | 0 | 0 | 2 | 0 |
Payments for Repurchase of Common Stock | 0 | |||||||
Net income (loss) attributable to Visteon Corporation | 14 | 14 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 118 | $ 118 | ||||||
Total equity | $ 605 | $ 487 | $ (2,257) | $ (212) | $ 1,623 | $ 1,332 | $ 1 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Accounting Policies [Text Block] | Description of Business Visteon Corporation (the "Company" or "Visteon") is a global technology company that designs, engineers and manufactures innovative cockpit electronics and connected car solutions for the world’s major vehicle manufacturers including Ford, Mazda, Renault/Nissan, General Motors, Volkswagen, Jaguar/Land Rover, Daimler, Honda and BMW. 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., primarily in Mexico, Bulgaria, Portugal, Germany, India and China. Visteon is driving the smart, learning, digital cockpit of the future, to improve safety and the user experience. Visteon is a global leader in cockpit electronic products including digital instrument clusters, information displays, infotainment, head-up displays ("HUD"), telematics, SmartCore™ cockpit domain controllers, and the DriveCore™ autonomous driving platform. Visteon also delivers artificial intelligence based technologies, connected car, cybersecurity, interior sensing, embedded multimedia and smartphone connectivity software solutions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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 ("SEC"). 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. Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $2 million related to a letter of credit facility, and $ 1 million related to cash collateral for other corporate purposes as of March 31, 2019 . Other Income, net: Three Months Ended March 31 2019 2018 (Dollars in Millions) Pension financing benefits, net $ 2 $ 3 Transformation initiatives — 4 $ 2 $ 7 Pension financing benefits, net include return on assets net of interest costs and other amortization. Transformation initiatives 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. During the three months ended March 31, 2018 , the Company recognized a $ 4 million benefit on settlement of litigation matters with the Company’s former President and Chief Executive Officer (“former CEO”) as further described in Note 17, "Commitments and Contingencies." Recently Adopted Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, “Leases (Subtopic 842).” The standard increases the transparency and comparability of organizations by recognizing right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheets and disclosing key quantitative and qualitative information about leasing arrangements. In transition, the standard provides for certain practical expedients. Management elected certain practical expedients including the election not to reassess existing or expired contracts to determine if such contracts contain a lease or if the lease classification would differ, as well as the election not to separate lease and non-lease components for arrangements where the Company is a lessee. The Company adopted the standard January 1, 2019, by applying the modified retrospective method without restatement of comparative periods' financial information, as permitted by the transition guidance. The standard had a material impact on the Company's consolidated balance sheets, but did not have an impact on its consolidated results of operations and cash flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the Company's accounting for finance leases remained substantially unchanged. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $172 million and $176 million , respectively, as of January 1, 2019. For additional information, refer to Note 10, "Leases" to the Company's consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)." This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017 (the "Act"). The Company adopted the standard January 1, 2019 and elected to reclassify stranded amounts related to the Act from accumulated other comprehensive income (loss) to retained earnings. However, due to the U.S. valuation allowance, there were no stranded tax effects within accumulated other comprehensive income (loss) as of the enactment date, and thus, no amount to reclassify to retained earnings. Accounting Pronouncements Not Yet Adopted: In June 2016, the FASB issued ASU 2016-13, "Credit Losses - Measurement of Credit Losses on Financial Instruments." The guidance requires that for most financial assets, losses be based on an expected loss approach which includes estimates of losses over the life of exposure that considers historical, current and forecasted information. Expanded disclosures related to the methods used to estimate the losses as well as a specific disaggregation of balances for financial assets are also required. The change is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not expect application of this accounting standards update to have a material impact on its consolidated financial statements. |
Acquistions (Notes)
Acquistions (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | Acquisitions On September 1, 2018 , the Company invested approximately $300,000 and acquired an additional 1% ownership in VFAE, a Chinese automotive electronic applications manufacturer in which the Company had previously been an equity investor. The Company's ownership interest increased to 51% and, because of the change in control, the assets and liabilities of VFAE were consolidated from the date of the transaction . The Company made this additional investment as part of its long-term strategic plan for VFAE. The investment will contribute to the business growth and enhanced economic performance of VFAE by leveraging Visteon’s manufacturing technology and engineering capabilities. The VFAE acquisition has been accounted for as a purchase transaction. The total consideration, including the $300,000 paid and the fair value of the original 50% interest, has been allocated to the assets acquired, liabilities assumed and non-controlling shareholder interest based on their representative value at September 1, 2018 . The excess consideration over the estimated fair value of the net assets acquired has been allocated to goodwill. The operating results of VFAE have been included in the consolidated financial statements of the Company since the date of the transaction. A preliminary summary of the fair value of the assets acquired and liabilities assumed, translated in U.S. dollars, in conjunction with the transaction is shown below (in millions): Assets Acquired Liabilities Assumed Cash and equivalents $ 16 Payable to Visteon Corporation $ 9 Accounts receivable, net 12 Accounts payable 6 Inventories, net 4 Other current liabilities 5 Other current assets 6 Income taxes payable 1 Property and equipment, net 5 Other non-current liabilities 2 Intangible assets including goodwill 9 Total liabilities assumed 23 Other non-current assets 1 Non-controlling interest 15 Total assets acquired $ 53 Visteon Corporation Consideration $ 15 The Company utilized a third party to assist in the fair value determination of certain components of the purchase price allocation, primarily intangible assets and non-controlling interest, as well as the fair value of the Company’s original 50% equity investment. Fair values of equity investment and non-controlling interest, as of the acquisition date were estimated using the discounted cash flow technique of the income approach. Fair values of intangible assets were based on the excess earning method of the income approach. The income approach requires the Company to project related future cash inflows and outflows and apply an appropriate discount rate. The estimates used in determining fair values are based on assumptions believed to be reasonable but which are inherently uncertain. At December 31, 2018 , the Company previously recorded its investment in VFAE of $10 million as an Investment in non-consolidated affiliates on its consolidated balance sheet. In connection with its increased investment in VFAE, the Company recorded a gain of approximately $4 million on its original investment, classified as "Other income, net" in the consolidated income statement. The acquisition does not meet the thresholds for a significant acquisition and therefore no pro forma financial information is presented. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations The Company completed the sale of the majority of its global Climate business (the "Climate Transaction") during 2015 and completed the divestiture of its global Interiors business in 2016 (the "Interiors Divestiture"). These transactions met the conditions required to qualify for discontinued operations reporting and accordingly the settlement of retained contingencies have been classified in income from discontinued operations, net of tax, in the consolidated statements of comprehensive income for the three months ended March 31, 2019 and 2018 . Discontinued operations are summarized as follows: Three Months Ended March 31 2019 2018 (Dollars in Millions) Cost of sales $ (1 ) $ — Restructuring, net 1 (1 ) Gain on divestitures — 3 Income from discontinued operations, net of tax $ — $ 2 During the first quarter of 2018, the Company recognized a $3 million benefit on settlement of litigation matters with its former CEO as further described in Note 17, "Commitments and Contingencies." |
Non-Consolidated Affiliates (No
Non-Consolidated Affiliates (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Yanfeng Transactions [Abstract] | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | Non-Consolidated Affiliates 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. Visteon and Yangfeng Automotive Trim Systems Co. Ltd. ("YF") each own 50% of a joint venture under the name of Yanfeng Visteon Investment Co., Ltd. ("YFVIC"). In October 2014, YFVIC completed the purchase of YF’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 YF and external borrowings which were guaranteed by Visteon, of which $11 million is outstanding as of March 31, 2019 . 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. 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 YF 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 2019 2018 (Dollars in Millions) Payables due to YFVIC $ 17 $ 17 Exposure to loss in YFVIC: Investment in YFVIC $ 41 $ 38 Receivables due from YFVIC 29 36 Subordinated loan receivable from YFVIC 18 20 Loan guarantee of YFVIC debt 11 11 Maximum exposure to loss in YFVIC $ 99 $ 105 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 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 which may include 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, 2018 , the Company recorded approximately $6 million of net restructuring expenses, including discontinued operations. Electronics During the first quarter of 2019, the Company approved a restructuring program impacting two European manufacturing facilities due to the end of life of certain product lines. The Company recorded approximately $2 million of restructuring expenses related to this program. During the third quarter of 2018, the Company approved a restructuring program impacting engineering and administrative functions to optimize operations. The Company has recorded approximately $18 million of net restructuring expenses since inception of this program and expects to incur up to $25 million under this program. As of March 31, 2019 , approximately $11 million remains accrued. As of March 31, 2019 , approximately $3 million remains accrued for restructuring programs related to employee severance and termination benefit expenses of legacy employees at a South America facility and employees at North America manufacturing facility due to the wind-down of certain products. During the fourth quarter of 2016, the Company approved a restructuring program impacting engineering and administrative functions to further align the Company's footprint with its core product technologies and customers. During the three months ended March 31, 2018 , the Company recorded approximately $5 million of restructuring expenses related to this program. As of March 31, 2019 , approximately $1 million remains accrued for the restructuring program as it is considered substantially complete. Other and Discontinued Operations During the first quarter of 2018, the Company recorded approximately $1 million of restructuring expense associated with a former European Interiors facility related to settlement of employee severance litigation. As of March 31, 2019 , the Company retained approximately $2 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 $19 million and $23 million as of March 31, 2019 and December 31, 2018 , 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 and Discontinued Operations Total (Dollars in Millions) December 31, 2018 $ 20 $ 3 $ 23 Expense 2 — 2 Utilization (3 ) — (3 ) Changes in estimates (1 ) (1 ) (2 ) Exchange (1 ) — (1 ) March 31, 2019 $ 17 $ 2 $ 19 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following components: March 31 December 31 2019 2018 (Dollars in Millions) Raw materials $ 125 $ 124 Work-in-process 20 26 Finished products 50 34 $ 195 $ 184 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets Other current assets are comprised of the following components: March 31 December 31 2019 2018 (Dollars in Millions) Recoverable taxes $ 54 $ 46 Contractually reimbursable engineering costs 44 40 Joint venture receivables 28 37 Prepaid assets and deposits 27 20 China bank notes 12 12 Other 4 4 $ 169 $ 159 The Company sold $23 million and $10 million of China bank notes during the three months ended March 31, 2019 , and March 31, 2018 respectively. As of March 31, 2019, $19 million remains outstanding and will mature by the end of the third quarter of 2019. The collection of such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. Other non-current assets are comprised of the following components: March 31 December 31 2019 2018 (Dollars in Millions) Deferred tax assets $ 59 $ 45 Recoverable taxes 32 33 Contractually reimbursable engineering costs 28 29 Joint venture receivables 18 20 Other 16 16 $ 153 $ 143 Current and non-current contractually reimbursable engineering costs of $44 million and $28 million , respectively, as of March 31, 2019 , and $40 million and $29 million , respectively, as of December 31, 2018 , 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 $31 million during the remainder of 2019 , $29 million in 2020 , $9 million in 2021 , $2 million in 2022 and $1 million in 2023 and beyond. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets, net Intangible assets, net are comprised of the following: March 31, 2019 Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles (Dollars in Millions) Definite-Lived: Developed technology 8 $ 41 $ (33 ) $ 8 Customer related 10 91 (45 ) 46 Capitalized software development 4 18 (3 ) 15 Other 21 14 (3 ) 11 Subtotal 164 (84 ) 80 Indefinite-Lived: Goodwill 48 — 48 Total $ 212 $ (84 ) $ 128 A roll-forward of the carrying amounts of intangible assets is presented below: December 31, 2018 March 31, 2019 Gross Intangibles Accumulated Amortization Net Intangibles Additions Foreign Currency Amortization Expense Net Intangibles (Dollars in Millions) Definite-Lived: Developed technology $ 40 $ (31 ) $ 9 $ — $ — $ (1 ) $ 8 Customer related 90 (42 ) 48 — — (2 ) $ 46 Capitalized software development 16 (3 ) 13 2 — — $ 15 Other 14 (2 ) 12 — — (1 ) $ 11 Subtotal 160 (78 ) 82 2 — (4 ) $ 80 Indefinite-Lived: Goodwill 47 — 47 — 1 — $ 48 Total $ 207 $ (78 ) $ 129 $ 2 $ 1 $ (4 ) $ 128 The Company recorded approximately $4 million of amortization expense related to definite-lived intangible assets for the three months ended March 31, 2019 and 2018 , respectively. The Company currently estimates annual amortization expense to be $18 million for 2019 , $16 million for 2020 , $11 million for 2021 , $11 million for 2022 , and $8 million for 2023 . 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 impairment during the three months ended March 31, 2019 . |
Other liabilities
Other liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities Other current liabilities are summarized as follows: March 31 December 31 2019 2018 (Dollars in Millions) Product warranty and recall accruals $ 36 $ 34 Restructuring reserves 19 23 Rent and royalties 18 14 Joint venture payables 16 17 Deferred income 16 16 Income taxes payable 9 15 Non-income taxes payable 8 13 Payment obligations 4 4 Dividends payable to non-controlling interests 3 3 Other 19 22 $ 148 $ 161 Other non-current liabilities are summarized as follows: March 31 December 31 2019 2018 (Dollars in Millions) Derivative financial instruments $ 16 $ 18 Product warranty and recall accruals 15 14 Deferred income 10 14 Income tax reserves 6 6 Non-income tax reserves 4 5 Other 18 19 $ 69 $ 76 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s short and long-term debt consists of the following: March 31 December 31 2019 2018 (Dollars in Millions) Short-Term Debt: Short-term borrowings $ 56 $ 57 Long-Term Debt: Term debt facility $ 348 $ 348 Short-Term Debt Short-term borrowings are primarily related to the Company's non-U.S. joint ventures and are payable in Chinese Renminbi and India Rupee. The Company had short-term borrowings of $56 million and $57 million as of March 31, 2019 and December 31, 2018, respectively. Available borrowings on outstanding affiliate credit facilities as of March 31, 2019 , are approximately $47 million and certain of these facilities have pledged assets as security. Long-Term Debt As of December 31, 2018, the Company had an amended credit agreement (the "Credit Agreement") which included a $350 million Term Facility maturing March 24, 2024 and a Revolving Credit Facility with capacity of $300 million maturing March 24, 2022. The amended Credit Agreement interest shall accrue at a rate equal to the applicable annualized domestic rate plus an applicable margin of 0.75% or the LIBOR-based rate plus an applicable margin of 1.75% per annum. The Company is required to pay accrued interest on any outstanding principal balance under the credit facility with a frequency of the lesser of the elected LIBOR tenor or every three months. Any outstanding principal under this facility will be due upon the maturity date. The Company may also terminate or reduce the borrowing commitments under this facility, in whole or in part, upon three business days’ notice. Loans drawn under the Revolving Credit Facility accrue interest at an annualized rate equal to LIBOR plus a margin ranging from 1.25% to 2.25% as specified by a ratings grid contained in the Credit Agreement. Based on the Company’s current credit ratings, borrowings would accrue interest at LIBOR plus 1.75% per annum. The Revolving Credit Facility also provides $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 Credit Facility. The Company may request increases in the limits under the amended Term Facility and the amended Revolving Credit 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 Credit Facility. There are no excess cash flow sweeps required at the Company’s current leverage level. 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 Credit 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 will be suspended. As of March 31, 2019 , the Company was in compliance with all its debt covenants. In connection with the second amendment both the Term Facility and Revolving Credit Facility during 2017, the Company recorded $1 million of interest expense and deferred $2 million of costs as a non-current asset. The deferred costs are being amortized over the term of the debt facilities. As of March 31, 2019, the amended Term Facility remains at $350 million of aggregate principal outstanding and there were no borrowings under the amended Revolving Credit Facility. Other The Company has a $5 million letter of credit facility, whereby the Company is required to maintain a collateral account equal to 103% ( 110% for non-U.S. dollar denominated letters) of the aggregate stated amount of issued letters of credit and must reimburse any amounts drawn under issued letters of credit. The Company had $2 million of outstanding letters of credit issued under this facility secured by restricted cash, as of March 31, 2019 . Additionally, the Company had $14 million of locally issued letters of credit with less than $1 million of collateral as of March 31, 2019 , to support various tax appeals, customs arrangements and other obligations at its local affiliates. |
Employee Retirement Benefits
Employee Retirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | 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, 2019 and 2018 were as follows: U.S. Plans Non-U.S. Plans 2019 2018 2019 2018 (Dollars in Millions) Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ — $ — Pension financing benefit (cost): Interest cost (8 ) (7 ) (2 ) (2 ) Expected return on plan assets 10 10 2 2 Restructuring related pension cost: Special termination benefits — (1 ) — — Net pension income (expense) $ 2 $ 2 $ — $ — During the three months ended March 31, 2019 , cash contributions to the Company's defined benefit plans were approximately less than $1 million for the U.S. plans and $1 million for the non-U.S. plans. The Company estimates that cash contributions to its defined benefit pension plans will be $7 million in 2019 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three month period ended March 31, 2019 , the Company recorded a benefit for income tax on continuing operations of $5 million , which reflects income tax expense in countries where the Company is profitable; accrued withholding taxes; ongoing assessments related to the recognition and measurement of uncertain tax benefits; the inability to record a tax benefit for pretax losses and/or recognize expense for pretax income in certain jurisdictions (including the U.S.) due to valuation allowances; and other non-recurring tax items, including changes in judgment about valuation allowances. Pretax losses from continuing operations in jurisdictions where valuation allowances are maintained and no income tax benefits are recognized totaled $13 million and $3 million for the three month periods ended March 31, 2019 and 2018 , 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 periods ended March 31, 2019 and 2018 , the Company recognized expense primarily related to non-U.S. withholding taxes, including exchange impacts, of $1 million and $3 million , respectively, reflecting the Company's forecasts which contemplate numerous financial and operational considerations that impact future repatriations. The Company's provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against income before income taxes, excluding equity in net income of non-consolidated affiliates for the period. Effective tax rates vary from period to period as separate calculations are performed for those countries where the Company's operations are profitable and whose results continue to be tax-effected and for those countries where full deferred tax valuation allowances exist and are maintained. In determining the estimated annual effective tax rate, the Company analyzes various factors, including but not limited to, forecasts of projected annual earnings, taxing jurisdictions in which the pretax income and/or pretax losses will be generated, available tax planning strategies and estimated impacts attributable to the Act. 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 include them 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, tax planning strategies and projected future impacts attributable to the Act. 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. However, the three-year loss position is not solely determinative and, accordingly, management considers all other available positive and negative evidence in its analysis. In regards to the full valuation allowance recorded against the U.S. net deferred tax assets, despite recent improvement in the U.S. financial results, management concluded that the weight of negative evidence continues to outweigh the positive evidence, in part attributable to unfavorable volumes for the most recent period and overall relative uncertainty surrounding global production volumes in later years. Additionally, the Company has made a policy election to apply the incremental cash tax savings approach when analyzing the impact the Act's provisions for global intangible low-taxed income ("GILTI") could have on its U.S. valuation allowance assessment. As a result of future expected GILTI inclusions, and because of the Act’s ordering rules, U.S. companies may now expect to utilize tax attribute carryforwards (e.g. net operating losses and foreign tax credits) for which a valuation allowance has historically been recorded (this is referred to as the “tax law ordering approach”). However, due to the mechanics of the GILTI rules, companies that have a GILTI inclusion may realize a reduced (or no) cash tax savings from utilizing such tax attribute carryforwards (this view is referred to as the “incremental cash tax savings approach”). These positions, along with management’s analysis of all other available evidence, resulted in the conclusion that the Company maintain the valuation allowance against deferred tax assets in the U.S. Based on the Company’s current assessment, it is possible that within the next 9 to 21 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. In March 2019, the closure of tax audits in Germany allowed the Company to initiate a tax planning strategy previously determined not to be prudent. This strategy provided the necessary positive evidence to support the future utilization of a portion of the Company's deferred tax assets in Germany resulting in a $12 million valuation allowance release during the three months ended March 31, 2019. Unrecognized Tax Benefits Gross unrecognized tax benefits as of March 31, 2019 and December 31, 2018 , including amounts attributable to discontinued operations, were $10 million in both years. Of these amounts approximately $4 million in both years 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. If the uncertainty is 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, 2019 and December 31, 2018 was $2 million in both years. 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 the U.S., 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 $6 million is included in "Other non-current liabilities" on the consolidated balance sheet. During 2012, Brazil tax authorities issued tax assessment notices to Visteon Sistemas Automotivos (“Sistemas”) related to the sale of its chassis business to a third party, which required a deposit in the amount of $15 million during 2013 necessary to open a judicial proceeding against the government in order to suspend the debt and allow Sistemas to operate regularly before the tax authorities after attempts to reopen an appeal of the administrative decision failed. Adjusted for currency impacts and accrued interest, the deposit amount is approximately $14 million , as of March 31, 2019 . 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 $18 million as of March 31, 2019 , 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, 2019 | |
Equity [Abstract] | |
Shareholders' Equity and Non-controlling Interests | Stockholders’ Equity and Non-controlling Interests Share Repurchase Program On January 9, 2017, the Company's Board of Directors authorized $400 million of share repurchases of common stock through March 2018. On January 15, 2018, the Company's Board of Directors authorized an additional $300 million of share repurchases, for a total authorization of $700 million , of its shares of common stock through 2020. During 2018, the Company entered into various programs with third-party financial institutions to purchase a total of approximately 2.8 million shares of Visteon common stock at an average price of $106.92 for an aggregate purchase amount of $300 million . As of March 31, 2019, the Company may execute up to $400 million additional share purchases under the January 2018 Board of Directors authorization which expires on December 31, 2020. The Company anticipates that additional share repurchases of common stock, if any, will occur from time to time in open market transactions or in privately negotiated transactions depending on market and economic conditions, share price level, trading volume, alternative uses of capital and other considerations. Stock-based Compensation, net During the three months ended March 31, 2018, equity increased $13 million due to the forfeiture of unvested shares for a litigation matter with the Company's former CEO as further described in Note 17, "Commitments and Contingencies," classified as a benefit of $10 million to selling, general and administrative expenses and a $3 million benefit classified as discontinued operations. Non-Controlling Interests The Company's non-controlling interests are as follows: March 31 December 31 2019 2018 (Dollars in Millions) Yanfeng Visteon Automotive Electronics Co., Ltd. $ 58 $ 56 Shanghai Visteon Automotive Electronics, Co., Ltd. 44 43 Changchun Visteon FAWAY Electronics, Co., Ltd. 15 15 Other 1 3 $ 118 $ 117 During the three months ended March 31, 2019 the Company paid less than a $1 million to purchase the remaining shares of a previous non-controlling interest. Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended March 31 2019 2018 (Dollars in Millions) Changes in AOCI: Beginning balance $ (216 ) $ (174 ) Other comprehensive income (loss) before reclassification, net of tax 5 17 Amounts reclassified from AOCI (1 ) — Ending balance $ (212 ) $ (157 ) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (142 ) $ (100 ) Other comprehensive income (loss) before reclassification, net of tax (a) — 20 Ending balance (142 ) (80 ) Net investment hedge Beginning balance (5 ) (12 ) Other comprehensive income (loss) before reclassification, net of tax (a) 7 (6 ) Amounts reclassified from AOCI (1 ) — Ending balance 1 (18) Benefit plans Beginning balance (71 ) (63 ) Other comprehensive income (loss) before reclassification, net of tax (b) — — Ending balance (71 ) (63 ) Unrealized hedging gain (loss) Beginning balance 2 1 Other comprehensive income (loss) before reclassification, net of tax (c) (2 ) 3 Ending balance — 4 Total AOCI $ (212 ) $ (157 ) (a) There were no income tax effects for either period due to the valuation allowance. (b) Net tax expense was less than $1 million related to benefit plans for the three months ended March 31, 2019 and 2018 . (c) For the three months ended March 31, 2019 , there was no income tax effect related to unrealized hedging gain (loss) due to the valuation allowance. There was a net tax expense of less than $1 million related to unrealized hedging gain (loss) for the three months ended March 31, 2018 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 per share: Three Months Ended March 31 2019 2018 (In Millions, Except Per Share Amounts) Numerator: Net income from continuing operations attributable to Visteon $ 14 $ 63 Net income from discontinued operations attributable to Visteon — 2 Net income attributable to Visteon $ 14 $ 65 Denominator: Average common stock outstanding - basic 28.2 30.5 Dilutive effect of performance based share units and other 0.2 0.3 Diluted shares 28.4 30.8 Basic and Diluted Per Share Data: Basic earnings per share attributable to Visteon: Continuing operations $ 0.50 $ 2.07 Discontinued operations — 0.07 $ 0.50 $ 2.14 Diluted earnings per share attributable to Visteon: Continuing operations $ 0.49 $ 2.05 Discontinued operations — 0.06 $ 0.49 $ 2.11 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements and Financial Instruments | 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 The Company is exposed to various market risks including, but not limited to, changes in currency exchange rates arising from the sale of products in counties other than the manufacturing source, foreign currency denominated supplier payments, debt, dividends and investments in subsidiaries. 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 related to transactions, excluding those transactions as related to the payment of variable interest on existing debt, is eighteen months. The maximum length of time over which the Company hedges forecasted transactions related to variable interest payments is the term of the underlying debt. 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 or may derived from observable data. Accordingly, the Company's currency instruments are classified as Level 2, "Other Observable Inputs" in the fair value hierarchy. 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 are included in the Company’s consolidated balance sheets. There is no cash collateral on any of these derivatives. Currency Exchange Rate Instruments: The Company primarily uses forward contracts denominated in Euro, Japanese Yen, Thai Baht and Mexican Peso intended to mitigate the variability of cash flows denominated in currency other than the hedging entity's functional currency. As of March 31, 2019 , and December 31, 2018 , the Company had foreign currency derivative instruments with aggregate notional value of approximately $9 million and $23 million , respectively. The fair value of these derivatives is an asset of less than $1 million and $1 million , as of March 31, 2019 , and December 31, 2018 , respectively. The difference between the gross and net value of these derivatives after offset by counter party is not material. Cross Currency Swaps: The Company has executed cross-currency swap transactions intended to mitigate the the variability of the U.S. dollar value of its investment in certain of its non-U.S. entities. These transactions are designated as net investment hedges and the Company has elected to assess hedge effectiveness under the spot method. Accordingly, periodic changes in the fair value of the derivative instruments attributable to factor other than spot exchange rate variability are excluded from the measure of hedge ineffectiveness and reported directly in earnings each reporting period. As of March 31, 2019 the Company had cross currency swaps with an aggregate notional value of $250 million and aggregate fair value of these derivatives is a liability of $10 million and $16 million recorded in other non-current liabilities at March 31, 2019 , and December 31, 2018 , respectively. The amount of accumulated other income expected to be reclassified into earnings within the next 12 months is approximately $7 million . Interest Rate Swaps: The Company utilizes interest rate swap instruments to manage its exposure and to mitigate the impact of interest rate variability. The instruments are designated as cash flow hedges, accordingly, the effective portion of the periodic changes in fair value is recognized in accumulated other comprehensive income, a component of shareholders' equity. Subsequently, the accumulated gains and losses recorded in equity are reclassified to income in the period during which the hedged cash flow impacts earnings. As of March 31, 2019 and December 31, 2018 , the Company had an aggregate notional value of interest rate swap transactions of $250 million for both dates. The aggregate fair value of these derivative transactions as of March 31, 2019 and December 31, 2018 was a non-current liability of approximately $4 million and $2 million , respectively. As of March 31, 2019, approximately $1 million of unrealized losses residing in accumulated other comprehensive income is expected to be reclassified into earnings within the next 12 months. Financial Statement Presentation Gains and losses on derivative financial instruments for the three months ended March 31, 2019 and 2018 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in Income (Loss) 2019 2018 2019 2018 2019 2018 (Dollars in Millions) Three Months Ended March 31, 2019 Foreign currency risk - Sales: Cash flow hedges $ — $ 1 $ — $ — $ — $ — Non-designated cash flow hedges — — — — — 1 Foreign currency risk - Cost of sales: Cash flow hedges — 1 — — — — Non-designated cash flow hedges — — — — 1 — Interest rate risk - Interest expense, net: Interest rate swap (2 ) 1 — — — — Net investment hedges 7 (6 ) 1 — — — $ 5 $ (3 ) $ 1 $ — $ 1 $ 1 Items Not Carried at Fair Value The Company's fair value of debt was approximately $400 million and $388 million as of March 31, 2019 and December 31, 2018 , 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. 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 pursuant to written policies that specify minimum counterparty credit profile and by limiting the concentration of credit exposure amongst its multiple counterparties. The Company's credit risk with any single customer does not exceed ten percent of total accounts receivable except for Ford and its affiliates which represent 13% and 14% , and Renault/Nissan which represents 13% and 11% , of the balance as of March 31, 2019 and December 31, 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 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. The Township appealed the decision to the Michigan Court of Appeals, which affirmed the dismissal of the Township’s lawsuit. The Township has sought leave to appeal from the Michigan Supreme Court. On May 11, 2018, the Supreme Court directed supplemental briefing and oral argument “on whether to grant the application or take other action.” The Township filed its supplemental brief on June 22, 2018, and Visteon filed its brief on July 13, 2018. On October 9, 2018, the Supreme Court held oral argument and took the matter under advisement. On March 8, 2019, the Supreme Court issued an order denying the Township’s application for leave to appeal. The Township’s deadline to seek rehearing was March 29, 2019. The Township did not seek rehearing, so the matter is now closed. The dispute between the Company and its former CEO was resolved in the first quarter of 2018. Pursuant to the resolution, the Company recognized $17 million of pre-tax income, representing the forfeiture of stock based awards and release of other liabilities accrued during prior periods. The benefit is classified as a reduction to selling, general and administrative expenses of $10 million , a benefit to "Other income, net" of $4 million , and a benefit to discontinued operations of $3 million . In November 2013, the Company and Halla Visteon Climate Control 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 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 its business, operating results and financial condition. The Company cannot predict when OFAC will conclude its own review of voluntary self-disclosures or whether it may impose any of the potential penalties described above. The Company's operations in Brazil are subject to highly complex labor, tax, customs and other laws. While the Company believes that it is in compliance with such laws, it is periodically engaged in litigation regarding the application of these laws. The Company maintained accruals of approximately $14 million for claims aggregating approximately $82 million in Brazil as of March 31, 2019 . 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 has provided a $11 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, 2019 , the Company has approximately $5 million and $1 million of outstanding guarantees, related to the divested Climate and Interiors entities, respectively. 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 Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. Specific cause actions represent customer actions related to defective supplier parts and related software. The following table provides a reconciliation of changes in the product warranty and recall claims liability: Three Months Ended March 31 2019 2018 (Dollars in Millions) Beginning balance $ 48 $ 49 Accruals for products shipped 5 5 Changes in estimates 1 1 Specific cause actions 2 2 Foreign currency — 2 Settlements (5 ) (7 ) Ending balance $ 51 $ 52 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, 2019 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. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Revenue Disclosure [Abstract] | |
Revenue Recognition [Text Block] | Revenue Recognition Disaggregated revenue by geographical market and product lines is as follows: Three Months Ended March 31 2018 2018 (Dollars in Millions) Geographical Markets (a) Europe $ 262 $ 275 Americas 190 227 China Domestic 108 98 China Export 69 89 Other Asia-Pacific 157 178 Eliminations (49 ) (53 ) $ 737 $ 814 (a) Company sales based on geographic region where sale originates and not where customer is located. Three Months Ended March 31 2019 2018 (Dollars in Millions) Product Lines Instrument clusters $ 314 $ 326 Audio and infotainment 196 208 Information displays 123 140 Climate controls 21 40 Body and security 32 31 Telematics 11 18 Other (includes HUD) 40 51 $ 737 $ 814 During the three months ended March 31, 2019 and 2018 , the Company recognized approximately $7 million and $8 million net increases in transaction price related to performance obligations satisfied in previous periods, respectively. The Company has no material contract assets, contract liabilities or capitalized contract acquisition costs as of March 31, 2019 . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 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 (a non-GAAP financial measure, as defined below) and operating assets. As the Company has one reportable segment, total assets, depreciation, amortization and capital expenditures are equal to consolidated results. The Company’s current reportable segment is Electronics, which provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment systems, audio systems, telematics solutions and head-up displays. 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, equity in net income of non-consolidated affiliates, loss on divestiture, provision for income taxes, discontinued operations, net income attributable to non-controlling interests, non-cash stock-based compensation expense, and other gains and losses not reflective of the Company's ongoing operations. 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. Sales were $737 million and $814 million for the three months ended March 31, 2019 and 2018 , respectively. Adjusted EBITDA was $41 million and $104 million for the three months ended March 31, 2019 and 2018 , respectively. The reconciliation of net income attributable to Visteon to Adjusted EBITDA is as follows: Three Months Ended March 31 2019 2018 (Dollars in Millions) Net income attributable to Visteon Corporation $ 14 $ 65 Depreciation and amortization 25 22 Restructuring expense 1 5 Interest expense, net 2 2 Equity in net income of non-consolidated affiliates (3 ) (3 ) Provision (benefit) for income taxes (5 ) 21 Income from discontinued operations, net of tax — (2 ) Net income attributable to non-controlling interests 2 4 Non-cash, stock-based compensation expense 5 (6 ) Other — (4 ) Adjusted EBITDA $ 41 $ 104 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Reclassification, Policy [Policy Text Block] | Other Income, net: Three Months Ended March 31 2019 2018 (Dollars in Millions) Pension financing benefits, net $ 2 $ 3 Transformation initiatives — 4 $ 2 $ 7 Pension financing benefits, net include return on assets net of interest costs and other amortization. Transformation initiatives 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. During the three months ended March 31, 2018 , the Company recognized a $ 4 million benefit on settlement of litigation matters with the Company’s former President and Chief Executive Officer (“former CEO”) as further described in Note 17, "Commitments and Contingencies." |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $2 million related to a letter of credit facility, and $ 1 million related to cash collateral for other corporate purposes as of March 31, 2019 . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Statement [Abstract] | |
Other (income) expense, net [Table Text Block] | Other Income, net: Three Months Ended March 31 2019 2018 (Dollars in Millions) Pension financing benefits, net $ 2 $ 3 Transformation initiatives — 4 $ 2 $ 7 |
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 2019 2018 (Dollars in Millions) Beginning balance $ 48 $ 49 Accruals for products shipped 5 5 Changes in estimates 1 1 Specific cause actions 2 2 Foreign currency — 2 Settlements (5 ) (7 ) Ending balance $ 51 $ 52 |
Acquistions (Tables)
Acquistions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | A preliminary summary of the fair value of the assets acquired and liabilities assumed, translated in U.S. dollars, in conjunction with the transaction is shown below (in millions): Assets Acquired Liabilities Assumed Cash and equivalents $ 16 Payable to Visteon Corporation $ 9 Accounts receivable, net 12 Accounts payable 6 Inventories, net 4 Other current liabilities 5 Other current assets 6 Income taxes payable 1 Property and equipment, net 5 Other non-current liabilities 2 Intangible assets including goodwill 9 Total liabilities assumed 23 Other non-current assets 1 Non-controlling interest 15 Total assets acquired $ 53 Visteon Corporation Consideration $ 15 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31 2019 2018 (Dollars in Millions) Cost of sales $ (1 ) $ — Restructuring, net 1 (1 ) Gain on divestitures — 3 Income from discontinued operations, net of tax $ — $ 2 |
Non-Consolidated Affiliates (Ta
Non-Consolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Non-consolidated Affiliates [Abstract] | |
Summary of Investment in Non-consolidated Affiliates [Table Text Block] | A summary of the Company's investments in YFVIC is provided below: March 31 December 31 2019 2018 (Dollars in Millions) Payables due to YFVIC $ 17 $ 17 Exposure to loss in YFVIC: Investment in YFVIC $ 41 $ 38 Receivables due from YFVIC 29 36 Subordinated loan receivable from YFVIC 18 20 Loan guarantee of YFVIC debt 11 11 Maximum exposure to loss in YFVIC $ 99 $ 105 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 and Discontinued Operations Total (Dollars in Millions) December 31, 2018 $ 20 $ 3 $ 23 Expense 2 — 2 Utilization (3 ) — (3 ) Changes in estimates (1 ) (1 ) (2 ) Exchange (1 ) — (1 ) March 31, 2019 $ 17 $ 2 $ 19 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following components: March 31 December 31 2019 2018 (Dollars in Millions) Raw materials $ 125 $ 124 Work-in-process 20 26 Finished products 50 34 $ 195 $ 184 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets are comprised of the following components: March 31 December 31 2019 2018 (Dollars in Millions) Recoverable taxes $ 54 $ 46 Contractually reimbursable engineering costs 44 40 Joint venture receivables 28 37 Prepaid assets and deposits 27 20 China bank notes 12 12 Other 4 4 $ 169 $ 159 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other non-current assets are comprised of the following components: March 31 December 31 2019 2018 (Dollars in Millions) Deferred tax assets $ 59 $ 45 Recoverable taxes 32 33 Contractually reimbursable engineering costs 28 29 Joint venture receivables 18 20 Other 16 16 $ 153 $ 143 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
intangible assets [Table Text Block] | Intangible assets, net are comprised of the following: March 31, 2019 Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles (Dollars in Millions) Definite-Lived: Developed technology 8 $ 41 $ (33 ) $ 8 Customer related 10 91 (45 ) 46 Capitalized software development 4 18 (3 ) 15 Other 21 14 (3 ) 11 Subtotal 164 (84 ) 80 Indefinite-Lived: Goodwill 48 — 48 Total $ 212 $ (84 ) $ 128 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | A roll-forward of the carrying amounts of intangible assets is presented below: December 31, 2018 March 31, 2019 Gross Intangibles Accumulated Amortization Net Intangibles Additions Foreign Currency Amortization Expense Net Intangibles (Dollars in Millions) Definite-Lived: Developed technology $ 40 $ (31 ) $ 9 $ — $ — $ (1 ) $ 8 Customer related 90 (42 ) 48 — — (2 ) $ 46 Capitalized software development 16 (3 ) 13 2 — — $ 15 Other 14 (2 ) 12 — — (1 ) $ 11 Subtotal 160 (78 ) 82 2 — (4 ) $ 80 Indefinite-Lived: Goodwill 47 — 47 — 1 — $ 48 Total $ 207 $ (78 ) $ 129 $ 2 $ 1 $ (4 ) $ 128 The Company recorded approximately $4 million of amortization expense related to definite-lived intangible assets for the three months ended March 31, 2019 and 2018 , respectively. The Company currently estimates annual amortization expense to be $18 million for 2019 , $16 million for 2020 , $11 million for 2021 , $11 million for 2022 , and $8 million for 2023 . 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 impairment during the three months ended March 31, 2019 . |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities [Abstract] | |
Other Current Liabilities [Table Text Block] | Other current liabilities are summarized as follows: March 31 December 31 2019 2018 (Dollars in Millions) Product warranty and recall accruals $ 36 $ 34 Restructuring reserves 19 23 Rent and royalties 18 14 Joint venture payables 16 17 Deferred income 16 16 Income taxes payable 9 15 Non-income taxes payable 8 13 Payment obligations 4 4 Dividends payable to non-controlling interests 3 3 Other 19 22 $ 148 $ 161 |
Other Noncurrent Liabilities [Table Text Block] | Other non-current liabilities are summarized as follows: March 31 December 31 2019 2018 (Dollars in Millions) Derivative financial instruments $ 16 $ 18 Product warranty and recall accruals 15 14 Deferred income 10 14 Income tax reserves 6 6 Non-income tax reserves 4 5 Other 18 19 $ 69 $ 76 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 2019 2018 (Dollars in Millions) Short-Term Debt: Short-term borrowings $ 56 $ 57 Long-Term Debt: Term debt facility $ 348 $ 348 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [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, 2019 and 2018 were as follows: U.S. Plans Non-U.S. Plans 2019 2018 2019 2018 (Dollars in Millions) Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ — $ — Pension financing benefit (cost): Interest cost (8 ) (7 ) (2 ) (2 ) Expected return on plan assets 10 10 2 2 Restructuring related pension cost: Special termination benefits — (1 ) — — Net pension income (expense) $ 2 $ 2 $ — $ — |
Stock-holders' Equity and Non-c
Stock-holders' Equity and Non-controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | |
Schedule of Non-controlling Interests [Table Text Block] | The Company's non-controlling interests are as follows: March 31 December 31 2019 2018 (Dollars in Millions) Yanfeng Visteon Automotive Electronics Co., Ltd. $ 58 $ 56 Shanghai Visteon Automotive Electronics, Co., Ltd. 44 43 Changchun Visteon FAWAY Electronics, Co., Ltd. 15 15 Other 1 3 $ 118 $ 117 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended March 31 2019 2018 (Dollars in Millions) Changes in AOCI: Beginning balance $ (216 ) $ (174 ) Other comprehensive income (loss) before reclassification, net of tax 5 17 Amounts reclassified from AOCI (1 ) — Ending balance $ (212 ) $ (157 ) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (142 ) $ (100 ) Other comprehensive income (loss) before reclassification, net of tax (a) — 20 Ending balance (142 ) (80 ) Net investment hedge Beginning balance (5 ) (12 ) Other comprehensive income (loss) before reclassification, net of tax (a) 7 (6 ) Amounts reclassified from AOCI (1 ) — Ending balance 1 (18) Benefit plans Beginning balance (71 ) (63 ) Other comprehensive income (loss) before reclassification, net of tax (b) — — Ending balance (71 ) (63 ) Unrealized hedging gain (loss) Beginning balance 2 1 Other comprehensive income (loss) before reclassification, net of tax (c) (2 ) 3 Ending balance — 4 Total AOCI $ (212 ) $ (157 ) (a) There were no income tax effects for either period due to the valuation allowance. (b) Net tax expense was less than $1 million related to benefit plans for the three months ended March 31, 2019 and 2018 . (c) For the three months ended March 31, 2019 , there was no income tax effect related to unrealized hedging gain (loss) due to the valuation allowance. There was a net tax expense of less than $1 million related to unrealized hedging gain (loss) for the three months ended March 31, 2018 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 per share: Three Months Ended March 31 2019 2018 (In Millions, Except Per Share Amounts) Numerator: Net income from continuing operations attributable to Visteon $ 14 $ 63 Net income from discontinued operations attributable to Visteon — 2 Net income attributable to Visteon $ 14 $ 65 Denominator: Average common stock outstanding - basic 28.2 30.5 Dilutive effect of performance based share units and other 0.2 0.3 Diluted shares 28.4 30.8 Basic and Diluted Per Share Data: Basic earnings per share attributable to Visteon: Continuing operations $ 0.50 $ 2.07 Discontinued operations — 0.07 $ 0.50 $ 2.14 Diluted earnings per share attributable to Visteon: Continuing operations $ 0.49 $ 2.05 Discontinued operations — 0.06 $ 0.49 $ 2.11 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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, 2019 and 2018 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in Income (Loss) 2019 2018 2019 2018 2019 2018 (Dollars in Millions) Three Months Ended March 31, 2019 Foreign currency risk - Sales: Cash flow hedges $ — $ 1 $ — $ — $ — $ — Non-designated cash flow hedges — — — — — 1 Foreign currency risk - Cost of sales: Cash flow hedges — 1 — — — — Non-designated cash flow hedges — — — — 1 — Interest rate risk - Interest expense, net: Interest rate swap (2 ) 1 — — — — Net investment hedges 7 (6 ) 1 — — — $ 5 $ (3 ) $ 1 $ — $ 1 $ 1 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 2019 2018 (Dollars in Millions) Beginning balance $ 48 $ 49 Accruals for products shipped 5 5 Changes in estimates 1 1 Specific cause actions 2 2 Foreign currency — 2 Settlements (5 ) (7 ) Ending balance $ 51 $ 52 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue by region and product [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | Disaggregated revenue by geographical market and product lines is as follows: Three Months Ended March 31 2018 2018 (Dollars in Millions) Geographical Markets (a) Europe $ 262 $ 275 Americas 190 227 China Domestic 108 98 China Export 69 89 Other Asia-Pacific 157 178 Eliminations (49 ) (53 ) $ 737 $ 814 (a) Company sales based on geographic region where sale originates and not where customer is located. |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended March 31 2019 2018 (Dollars in Millions) Product Lines Instrument clusters $ 314 $ 326 Audio and infotainment 196 208 Information displays 123 140 Climate controls 21 40 Body and security 32 31 Telematics 11 18 Other (includes HUD) 40 51 $ 737 $ 814 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Adjusted EBITDA to Net Income Attributable to the Company [Table Text Block] | The reconciliation of net income attributable to Visteon to Adjusted EBITDA is as follows: Three Months Ended March 31 2019 2018 (Dollars in Millions) Net income attributable to Visteon Corporation $ 14 $ 65 Depreciation and amortization 25 22 Restructuring expense 1 5 Interest expense, net 2 2 Equity in net income of non-consolidated affiliates (3 ) (3 ) Provision (benefit) for income taxes (5 ) 21 Income from discontinued operations, net of tax — (2 ) Net income attributable to non-controlling interests 2 4 Non-cash, stock-based compensation expense 5 (6 ) Other — (4 ) Adjusted EBITDA $ 41 $ 104 |
Description of Business (Detail
Description of Business (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Entity Number of Employees | 10,000 | |
HVCC [Member] | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | $ (3) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2019 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 99 | $ 105 | ||
Transformation Costs | 2 | $ 4 | 4 | |
Pension Financing Benefits, net | 0 | 3 | ||
Other expense, net | 2 | 7 | ||
Restricted cash | 3 | 4 | ||
Equity in net income of (loss) non-consolidated affiliates | (3) | $ (3) | ||
Investments in non-consolidated affiliates | 45 | 42 | ||
Guarantor Obligations, Current Carrying Value | 11 | 11 | ||
Operating Lease, Liability | 170 | $ 172 | ||
Operating Lease, Right-of-Use Asset | 167 | 0 | $ 176 | |
Cash Collateral for Letter of Credit Facility [Member] | ||||
Restricted cash | 2 | |||
Cash Collateral For Other Corporate Purposes [Member] | ||||
Restricted cash | $ 1 | |||
YFVIC [Member] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Due to Related Parties, Noncurrent | $ 17 | 17 | ||
Due from Related Parties, Current | 29 | 36 | ||
Due from Related Parties, Noncurrent | 18 | 20 | ||
Yanfeng Visteon Electronics (China) Investment Company [Member] | ||||
Investments in non-consolidated affiliates | $ 41 | $ 38 |
Acquistions (Details)
Acquistions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Sep. 01, 2018 | Aug. 31, 2018 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | Sep. 1, 2018 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 4,000,000 | |||||
Business Combination, Consideration Transferred | $ 300,000 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 1.00% | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 51.00% | |||||
Business Combination, Reason for Business Combination | . The Company made this additional investment as part of its long-term strategic plan for VFAE. The investment will contribute to the business growth and enhanced economic performance of VFAE by leveraging Visteon’s manufacturing technology and engineering capabilities. | |||||
Cash | $ 16,000,000 | |||||
Accounts Receivable, Net, Current | 12,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 6,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 4,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 5,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 6,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 5,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 2,000,000 | |||||
Intangible Assets Net Including Goodwill | $ 128,000,000 | $ 129,000,000 | $ 128,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,000,000 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 50.00% | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Valuation Techniques | Fair values of equity investment and non-controlling interest, as of the acquisition date were estimated using the discounted cash flow technique of the income approach. | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 10,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 53,000,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 23,000,000 | |||||
Stockholders' Equity Attributable to Parent | $ 487,000,000 | $ 465,000,000 | ||||
VFAE [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts Payable, Related Parties | 9,000,000 | |||||
Taxes Payable | 1,000,000 | |||||
Intangible Assets Net Including Goodwill | 9,000,000 | |||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 15,000,000 | |||||
Stockholders' Equity Attributable to Parent | $ 15,000,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
restructuring charges, net of reversal, including discontinued operations | $ 1 | $ (1) |
Income Tax Expense (Benefit) | (5) | 21 |
(Loss) income from discontinued operations, net of tax | 0 | 2 |
HVCC [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 0 | 3 |
Selling, General and Administrative Expenses [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (1) | $ 0 |
Non-Consolidated Affiliates (De
Non-Consolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 4 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 45 | $ 42 | |
Guarantor Obligations, Current Carrying Value | 11 | 11 | |
Loss Contingency, Estimate of Possible Loss | 99 | 105 | |
Equity in net income of (loss) non-consolidated affiliates | $ 3 | $ 3 | |
YFVIC [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Due to Related Parties, Noncurrent | $ 17 | 17 | |
Due from Related Parties, Current | 29 | 36 | |
Due from Related Parties, Noncurrent | $ 18 | 20 | |
YFVE [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||
Yanfeng Visteon Electronics (China) Investment Company [Member] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 41 | $ 38 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | $ (1) | ||
Restructuring Charges | 1 | $ 5 | |
Restructuring charges, net of reversals | 1 | 5 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Beginning Balance | 23 | ||
Utilization | (3) | ||
Restructuring Reserve, Current, Ending Balance | 19 | $ 23 | |
Restructuring Reserve, Accrual Adjustment | (2) | ||
2019 Europe Manufacturing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 2 | ||
South America Legacy & North America Manufacturing [Member] [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 3 | ||
2016 Engineering & SGA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 5 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 1 | ||
2016 Other Restructuring Program [Member] [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | 2 | ||
Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 2 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Beginning Balance | 20 | ||
Utilization | (3) | ||
Restructuring Reserve, Current, Ending Balance | 17 | 20 | |
Other Restructuring [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Beginning Balance | 3 | ||
Utilization | 0 | ||
Restructuring Reserve, Current, Ending Balance | 2 | $ 3 | |
Other Segments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Accrual Adjustment | (1) | ||
Electronics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | (1) | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Accrual Adjustment | (1) | ||
restructuring charges, net of reversal, including discontinued operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net of reversals | $ 6 | ||
2018 Engineering & SGA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 25 | ||
Restructuring charges, net of reversals | 18 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Current, Ending Balance | $ 11 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory, Raw Materials, Net of Reserves | $ 125 | $ 124 |
Inventory, Work in Process, Net of Reserves | 20 | 26 |
Inventories, net | 195 | 184 |
Inventory, Finished Goods, Net of Reserves | $ 50 | $ 34 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes, Loans and Financing Receivable, Gross, Current | $ 23 | $ 10 | |
Recoverable Taxes | 54 | $ 46 | |
Prepaid assets and deposits | 27 | 20 | |
Joint venture receivables | 28 | 37 | |
Nontrade Receivables, Current | 12 | 12 | |
Contractual engineering cost recoveries, current | 44 | 40 | |
Other Assets, Miscellaneous, Current | 4 | 4 | |
Other Assets, Current | 169 | 159 | |
Deferred tax assets | 59 | 45 | |
Recoverable taxes, non current | 32 | 33 | |
Contractual engineering cost recoveries, non-current | 28 | 29 | |
Notes Receivable, Related Parties, Noncurrent | 18 | 20 | |
Other | 16 | 16 | |
Other Assets, Noncurrent | 153 | $ 143 | |
Reimbursement of Engineering costs in current year | 31 | ||
Reimbursement of Engineering costs in following year | 29 | ||
Reimbursement for engineering costs expected in year two | 9 | ||
Reimbursement for engineering costs expected in year three | 2 | ||
Reimbursement for engineering costs expected in year four | 1 | ||
Financing Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes, Loans and Financing Receivable, Gross, Current | $ 19 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 01, 2018 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets Including Goodwill Translation Adjustment | $ 1 | |||
Definite-Lived Intangible Assets [Abstract] | ||||
Finite-Lived Intangible Assets, Gross | $ 160 | $ 164 | ||
Goodwill, Acquired During Period | 0 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (78) | (84) | ||
Net Carrying Value | 82 | 80 | ||
Goodwill | 0 | |||
Goodwill and Indefinite-lived Intangible Assets, Net | 48 | 47 | 48 | |
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Goodwill, Gross | 47 | 48 | ||
Intangible Assets, Gross (Including Goodwill) | 207 | 212 | ||
Intangible Assets Net Including Goodwill | 128 | 129 | 128 | |
Finite-lived Intangible Assets Acquired | 2 | |||
Amortization expense | (4) | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 18 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 16 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 11 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 11 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 8 | |||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0 | |||
Intangible Assets, Net (Excluding Goodwill) | 80 | |||
Intangible Assets Net Including Goodwill Recognized From Business Acquisition | $ 2 | |||
Developed Technology Rights [Member] | ||||
Definite-Lived Intangible Assets [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Finite-Lived Intangible Assets, Gross | 40 | 41 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (31) | (33) | ||
Net Carrying Value | $ 8 | 9 | 8 | |
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Finite-lived Intangible Assets Acquired | 0 | |||
Amortization expense | (1) | |||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0 | |||
Customer Relationships [Member] | ||||
Definite-Lived Intangible Assets [Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 90 | 91 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (42) | (45) | ||
Net Carrying Value | 46 | 48 | 46 | |
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Finite-lived Intangible Assets Acquired | 0 | |||
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 | 4 years | |||
Finite-Lived Intangible Assets, Gross | 16 | 18 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (3) | (3) | ||
Net Carrying Value | $ 15 | 13 | 15 | |
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Finite-lived Intangible Assets Acquired | 2 | |||
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 | 21 years | |||
Finite-Lived Intangible Assets, Gross | 14 | 14 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (2) | (3) | ||
Net Carrying Value | $ 11 | 12 | $ 11 | |
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Finite-lived Intangible Assets Acquired | 0 | |||
Amortization expense | 1 | |||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0 | |||
Goodwill [Member] | ||||
Definite-Lived Intangible Assets [Abstract] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 0 | |||
Goodwill [Member] | ||||
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Amortization expense | 0 | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 1 | |||
Electronics [Member] | ||||
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Amortization expense | $ 4 | |||
Minimum [Member] | Customer Relationships [Member] | ||||
Definite-Lived Intangible Assets [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
VFAE [Member] | ||||
Goodwill and indefinite-lived intangible assets [Abstract] | ||||
Intangible Assets Net Including Goodwill | $ 9 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Other Liabilities [Abstract] | |||
Product warranty and recall accruals | $ 36 | $ 34 | |
Dividends Payable, Current | 3 | 3 | |
Income taxes payable | 9 | 15 | |
Rent and royalties | 18 | 14 | |
Restructuring Reserve | 19 | 23 | |
Deferred income | 16 | 16 | |
Joint venture payables | 16 | 17 | |
Non-income taxes payable | 8 | 13 | |
Payments for Previous Acquisition | 4 | $ 4 | |
Other | 19 | 22 | |
Other Liabilities, Current | 148 | 161 | |
Payments of Capital Distribution | 0 | $ 14 | |
Hedging Liabilities, Noncurrent | 16 | 18 | |
Product warranty and recall accruals | 15 | 14 | |
Deferred income | 10 | 14 | |
Income tax reserves | 6 | 6 | |
Non-income tax reserves | 4 | 5 | |
Other | 18 | 19 | |
Other Liabilities, Noncurrent | $ 69 | $ 76 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Operating Leased Assets [Line Items] | ||
Operating Lease, Cost | $ (10) | |
Operating Lease, Payments, Use | 9 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 14 | |
Finance Lease, Weighted Average Remaining Lease Term | 7 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 0.00% | |
Short-term Lease, Cost | $ (1) | |
Sublease Income | 1 | |
Lease, Cost | (10) | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 28 | |
Receivable with Imputed Interest, Discount | 32 | |
Operating Lease, Liability | 170 | $ 172 |
Operating Leases, Future Minimum Payments, Due in Two Years | 32 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 26 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 23 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 22 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 71 | |
Operating Leases, Future Minimum Payments Receivable | $ 202 |
Benefit Expenses (Details)
Benefit Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Scenario, Forecast [Member] | ||
Benefit Expenses | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 7 | |
Foreign Plan [Member] | ||
Benefit Expenses | ||
Interest cost | (2) | $ (2) |
Expected return on plan assets | 2 | 2 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 1 | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 |
Domestic Plan [Member] | ||
Benefit Expenses | ||
Interest cost | (8) | (7) |
Expected return on plan assets | 10 | 10 |
Net pension (income) expense | 2 | 2 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1 | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | $ 1 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2017 | Mar. 24, 2017 | Dec. 31, 2016 | |
Short-term debt [Abstract] | ||||||
Other - short-term | $ 56 | $ 57 | ||||
Short-term debt | 56 | 57 | ||||
Long-term debt | ||||||
Long-term debt | $ 348 | 348 | ||||
Line of Credit Facility, Interest Rate Description | 0.0175 | |||||
Amended LOC Agreement Facility Capacity | $ 5 | |||||
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 | $ 2 | |||||
Debt Instrument, Collateral | 1 | |||||
Interest Expense, Debt | $ 1 | |||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 2 | |||||
LOC Facility issued by local affiliates [Member] | ||||||
Long-term debt | ||||||
Letters of Credit Outstanding, Amount | $ 14 | |||||
Revolving Credit Facility [Member] | ||||||
Long-term debt | ||||||
Debt Instrument, face amount | $ 300 | |||||
Term Loan [Member] | ||||||
Long-term debt | ||||||
Unsecured long-term debt, non-current | $ 348 | $ 348 | ||||
Debt Instrument, face amount | $ 350 | |||||
Term loan, required periodic payment | 0.0175 | |||||
Affiliated Entity [Member] | ||||||
Long-term debt | ||||||
Line of Credit Facility, Capacity Available for Trade Purchases | $ 47 | |||||
Revolving Credit Facility [Member] | ||||||
Long-term debt | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 75 | |||||
borrowing capacity under swing line advances | $ 20 | |||||
Maximum [Member] | ||||||
Long-term debt | ||||||
Line of Credit Facility, Interest Rate Description | 0.0225 | |||||
Debt Instrument, Covenant Description | 3 | |||||
Minimum [Member] | ||||||
Long-term debt | ||||||
Line of Credit Facility, Interest Rate Description | 0.0125 | |||||
Debt Instrument, Covenant Description | 1 | |||||
Domestic rate [Member] | ||||||
Long-term debt | ||||||
Line of Credit Facility, Interest Rate Description | 0.0075 |
Provision For Income Taxes (Det
Provision For Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Provision for income taxes | $ 5 | $ (21) |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 11 | 88 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 1 | 3 |
Unrecognized Tax Benefits | 10 | |
Jurisdictions where valuation allowances are maintained [Member] | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (13) | $ (3) |
Domestic Country And Foreign Country Witholding Taxes [Member] | ||
Deferred Tax Liabilities, Net | $ 12 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2013 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2 | ||
Reconciiation of Unrecognized Tax Benefits [Abstract] | |||
Unrecognized Tax Benefits | 10 | ||
Liability for Uncertain Tax Positions, Noncurrent | 6 | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 1 | $ 3 | |
Visteon Sistemas Automotivos [Member] | |||
Reconciiation of Unrecognized Tax Benefits [Abstract] | |||
Tax audit appeals payment | 14 | $ 15 | |
Worldwide [Member] | |||
Reconciiation of Unrecognized Tax Benefits [Abstract] | |||
Tax audit appeals and refund claims receivable | $ 18 |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-controlling Interests (Details) - USD ($) shares in Millions, $ / shares in Millions, $ in Millions | Jul. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) from continuing operations | $ 16 | $ 67 | ||||
(Loss) income from discontinued operations, net of tax | 0 | 2 | ||||
Net income (loss) | 16 | 69 | ||||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 5 | 17 | ||||
Other Comprehensive Income (Loss), Net of Tax | 5 | 23 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2 | (13) | ||||
Dividends to non-controlling interests | (25) | |||||
Total equity | 605 | 615 | $ 582 | $ 761 | ||
Decrease to selling, general and administrative expenses | 10 | 10 | ||||
Transformation Costs | 2 | 4 | 4 | |||
Payments for Repurchase of Common Stock | $ 0 | 200 | ||||
Treasury Stock Acquired, Repurchase Authorization | 300 | |||||
Stock Repurchase Program, Authorized Amount | $ 400 | 400 | ||||
Non-controlling interests | 118 | 117 | ||||
Accumulated other comprehensive income (loss) | (212) | (157) | (216) | $ (174) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1) | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1 | 1 | ||||
Income Tax Expense (Benefit) | 1 | 1 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 700 | |||||
YFVE [Member] | ||||||
Other comprehensive income (loss) | ||||||
Non-controlling interests | 58 | 56 | ||||
SVAE - Shanghai Electronics [Member] | ||||||
Other comprehensive income (loss) | ||||||
Non-controlling interests | 44 | 43 | ||||
Visteon Interiors Korea Ltd. [Member] | ||||||
Other comprehensive income (loss) | ||||||
Non-controlling interests | 15 | 15 | ||||
Other Entity [Member] | ||||||
Other comprehensive income (loss) | ||||||
Non-controlling interests | 1 | 3 | ||||
Parent [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 14 | 65 | ||||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), Net of Tax | 4 | 17 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2 | (13) | ||||
Dividends to non-controlling interests | 0 | |||||
Total equity | 487 | 506 | 465 | 637 | ||
Payments for Repurchase of Common Stock | 200 | |||||
Noncontrolling Interest [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2 | 4 | ||||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), Net of Tax | 1 | 6 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 0 | 0 | ||||
Dividends to non-controlling interests | (25) | |||||
Total equity | 117 | $ 124 | ||||
Payments for Repurchase of Common Stock | 0 | |||||
Non-controlling interests | 118 | 109 | ||||
Accumulated Translation Adjustment [Member] | ||||||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 20 | ||||
Accumulated other comprehensive income (loss) | (142) | (80) | (142) | (100) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||||
Accumulated other comprehensive income (loss) | (71) | (63) | (71) | (63) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2) | 3 | ||||
Accumulated other comprehensive income (loss) | 0 | 4 | 2 | 1 | ||
HVCC [Member] | ||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 0 | 3 | ||||
Cross Currency Interest Rate Contract [Member] | Accumulated Translation Adjustment [Member] | ||||||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 7 | (6) | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 1 | $ (18) | (5) | $ (12) | ||
10b5-1 Share Repurchase Program [Member] | ||||||
Other comprehensive income (loss) | ||||||
Payments for Repurchase of Common Stock | $ 300 | |||||
Open Market Share Repurchase Program [Member] | ||||||
Other comprehensive income (loss) | ||||||
Stock Repurchased During Period, Shares | 3 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 0 | |||||
BRAZIL | Pending Litigation [Member] | ||||||
Other comprehensive income (loss) | ||||||
Loss Contingency Accrual | $ 13 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Diluted, by Common Class [Line Items] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 0 | $ 2 |
Numerator: | ||
Net income (loss) from continuing operations attributable to Visteon | 14 | 63 |
Net income (loss) attributable to Visteon Corporation | $ 14 | $ 65 |
Denominator: | ||
Average common stock outstanding - basic | 28.2 | 30.5 |
Dilutive effect of warrants and PSUs | 0.2 | 0.3 |
Diluted shares | 28.4 | 30.8 |
Basic earnings (loss) per share | ||
Continuing operations | $ 0.50 | $ 2.07 |
Discontinued operations | 0 | 0.07 |
Basic | 0.50 | 2.14 |
Diluted earnings (loss) per share | ||
Continuing operations | 0.49 | 2.05 |
Discontinued operations | 0 | 0.06 |
Diluted | $ 0.49 | $ 2.11 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 30, 2018 | |
Derivative [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 400 | $ 388 | ||
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | 7 | |||
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 9 | 23 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 5 | $ (3) | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 1 | 1 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | |||
Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 250 | |||
Currency Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Fair Value, Net | (16) | |||
Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Liability [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Fair Value, Net | 1 | 1 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 1 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (2) | 1 | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 1 | |||
Derivative Liability | (4) | $ (2) | ||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 7 | (6) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | |||
Derivative, Fair Value, Net | (10) | |||
Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 1 | 1 | ||
Cost of Sales [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 | ||
Cost of Sales [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 0 | $ 0 | ||
Currency Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 250 |
Derivatives Balance Sheet Locat
Derivatives Balance Sheet Location (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 9 | $ 23 |
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $ (10) |
Derivatives Income Statement Lo
Derivatives Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 5 | $ (3) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 1 | 1 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 1 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 7 | (6) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (2) | 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 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 | $ 1 |
Credit Risk (Details)
Credit Risk (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 400 | $ 388 | |
Ford And Affiliates [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 13.00% | 14.00% | |
Nissan\Renault [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 13.00% | 11.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2013 | Dec. 31, 2003 | |
Loss Contingencies [Line Items] | ||||||
Amount of Bonds Issued by the Charter Township of Van Buren, Michigan | $ 28 | |||||
Increase in pre-tax income | $ 17 | |||||
Decrease to selling, general and administrative expenses | 10 | $ 10 | ||||
Transformation Costs | 2 | 4 | $ 4 | |||
Loss Contingency, Estimate of Possible Loss | 99 | 105 | ||||
Guarantor Obligations, Current Carrying Value | 11 | 11 | ||||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||||
Product Warranty Accrual, Beginning Balance | 48 | 49 | 49 | |||
Standard and Extended Product Warranty Accrual, Period Increase (Decrease) | 5 | 5 | ||||
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 1 | 1 | ||||
Product warranty accrual, specific action increase (decrease) | 2 | 2 | ||||
Standard and Extended Product Warranty Accrual, Foreign Currency Translation Gain (Loss) | 0 | 2 | ||||
Standard and Extended Product Warranty Accrual, Decrease for Payments | 5 | 7 | ||||
Product Warranty Accrual, Ending Balance | 51 | 52 | 48 | |||
Interiors [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee for Divested Entities Lease Payments | 1 | |||||
HVCC [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee for Divested Entities Lease Payments | 5 | |||||
Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated Shortfall in Tax Revenues of the Township | $ 25 | |||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated Shortfall in Tax Revenues of the Township | $ 36 | |||||
IRAN, ISLAMIC REPUBLIC OF | Certain HVCC subsidiaries in China [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 12 | |||||
Pending Litigation [Member] | BRAZIL | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency Accrual | $ 13 | |||||
Pending Litigation [Member] | BRAZIL | Affiliated Entity [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency Accrual | 14 | |||||
Loss Contingency, Estimate of Possible Loss | 82 | |||||
HVCC [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | $ 3 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | $ 737 | $ 814 |
Net changes in transaction price | 7 | 8 |
hedging impact and eliminations | (49) | (53) |
Asia [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 157 | 178 |
Europe [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 262 | 275 |
Americas [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 190 | 227 |
All Countries [Domain] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 737 | 814 |
Instrument cluster [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 314 | 326 |
Audio and infotainment [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 196 | 208 |
Information displays [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 123 | 140 |
Climate controls [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 21 | 40 |
Body and security [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 32 | 31 |
Telematics [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 11 | 18 |
Other (includes HUD) [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 40 | 51 |
China Export [Member] | Asia [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 69 | 89 |
China Domestic [Member] | Asia [Member] | ||
net changes in transaction price [Line Items] | ||
Disclosure on Geographic Areas, Description of Revenue from External Customers | $ 108 | $ 98 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | |||
Revenues | $ 737 | $ 814 | |
Adjusted EBITDA for Total Company | 41 | 104 | |
Depreciation and Amortization Expenses for Continuing Operations | (25) | (22) | |
Restructuring charges, net of reversals | (1) | (5) | |
Interest expense, net | 2 | 2 | |
Equity in net income of non-consolidated affiliates | (3) | (3) | |
Equity in net income of (loss) non-consolidated affiliates | (3) | (3) | |
Other expense, net | (2) | (7) | |
Provision for income taxes | 5 | (21) | |
Adjustments to EBITDA for Discontinued Operations | 0 | (2) | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 2 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | (2) | |
Net income attributable to non-controlling interests | 2 | 4 | |
Allocated Share-based Compensation Expense | 5 | (6) | |
Share-based Compensation | (5) | 6 | |
Other Nonoperating Expense | 0 | 4 | |
Adjusted EBITDA | 41 | 104 | |
Net income (loss) attributable to Visteon Corporation | 14 | 65 | |
Assets | 2,182 | $ 2,007 | |
Restructuring Charges | $ 1 | $ 5 |