Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-15827 | |
Entity Registrant Name | VISTEON CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-3519512 | |
Entity Address, Address Line One | One Village Center Drive, | |
Entity Address, City or Town | Van Buren Township, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48111 | |
City Area Code | 800 | |
Local Phone Number | VISTEON | |
Title of 12(b) Security | Common Stock, Par Value $.01 Per Share | |
Trading Symbol | VC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,827,266 | |
Amendment Flag | false | |
Entity Central Index Key | 0001111335 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 371 | $ 733 | $ 1,014 | $ 1,470 |
Cost of Goods and Services Sold | (367) | (663) | (957) | (1,334) |
Gross margin | 4 | 70 | 57 | 136 |
Selling, general and administrative expenses | (41) | (58) | (95) | (115) |
Restructuring charges, net of reversals | (4) | 0 | (37) | 1 |
Interest expense | (5) | (3) | (8) | (6) |
Interest income | 2 | 1 | 3 | 2 |
Equity in net income of (loss) non-consolidated affiliates | 1 | 3 | 2 | 6 |
Other expense, net | 3 | 3 | 7 | 5 |
Income (loss) before income taxes | (40) | 16 | (71) | 27 |
Provision for income taxes | (2) | (8) | (7) | (3) |
(Loss) income from discontinued operations, net of tax | 0 | 0 | ||
Net income (loss) | (42) | 8 | (78) | 24 |
Net income attributable to non-controlling interests | (3) | (1) | (2) | (3) |
Net income (loss) attributable to Visteon Corporation | $ (45) | $ 7 | $ (80) | $ 21 |
Basic earnings (loss) per share: | ||||
Basic earnings (loss) attributable to Visteon Corporation | $ (1.62) | $ 0.25 | $ (2.87) | $ 0.75 |
Diluted earnings (loss) per share | ||||
Diluted earnings (loss) attributable to Visteon Corporation | $ (1.62) | $ 0.25 | $ (2.87) | $ 0.74 |
Comprehensive income: | ||||
Comprehensive income (loss) | $ (37) | $ 4 | $ (110) | $ 25 |
Comprehensive income (loss) attributable to Visteon Corporation | (40) | 4 | (112) | $ 22 |
Retained Earnings [Member] | ||||
Net income (loss) attributable to Visteon Corporation | $ (45) | $ 7 | $ (80) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and equivalents | $ 755 | $ 466 |
Restricted cash | 4 | 3 |
Accounts receivable, net | 334 | 514 |
Inventories, net | 170 | 169 |
Other current assets | 163 | 193 |
Total current assets | 1,426 | 1,345 |
Property and equipment, net | 416 | 436 |
Intangible assets, net | 125 | 127 |
Operating Lease, Right-of-Use Asset | 157 | 165 |
Investments in non-consolidated affiliates | 50 | 48 |
Other non-current assets | 146 | 150 |
Total assets | 2,320 | 2,271 |
LIABILITIES AND EQUITY | ||
Short-term debt, including current portion of long-term debt | 22 | 37 |
Accounts payable | 332 | 511 |
Accrued employee liabilities | 59 | 73 |
Operating Lease, Liability, Current | 29 | 30 |
Other current liabilities | 156 | 147 |
Total current liabilities | 598 | 798 |
Long-term debt | 748 | 348 |
Employee benefits | 281 | 292 |
Operating Lease, Liability, Noncurrent | 135 | 139 |
Deferred tax liabilities | 28 | 27 |
Other non-current liabilities | 62 | 72 |
Stockholders' equity: | ||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of June 30, 2020 and December 31, 2019) | 0 | 0 |
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 28 million shares outstanding as of June 30, 2020 and December 31, 2019) | 1 | 1 |
Additional paid-in capital | 1,341 | 1,342 |
Retained earnings | 1,599 | 1,679 |
Accumulated other comprehensive loss | (299) | (267) |
Treasury stock | (2,284) | (2,275) |
Total Visteon Corporation stockholders' equity | 358 | 480 |
Non-controlling interests | 110 | 115 |
Total equity | 468 | 595 |
Total liabilities and equity | $ 2,320 | $ 2,271 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
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 | 31 | 30 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50 | 50 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 759 | $ 438 |
Operating Activities | ||
Net income (loss) | 78 | (24) |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation and amortization | 50 | 49 |
Equity in net income of non-consolidated affiliates, net of dividends remitted | (2) | (6) |
Non-cash stock-based compensation | 9 | 11 |
Other Operating Income (Expense), Net | 2 | 5 |
Changes in assets and liabilities: | ||
Accounts receivable | 170 | 18 |
Inventories | (5) | (3) |
Accounts payable | (149) | 20 |
Other assets and other liabilities | (10) | (57) |
Net cash provided from operating activities | (13) | 61 |
Investing Activities | ||
Payments to acquire property, plant, equipment, and intangible assets | (65) | (71) |
Loans to non-consolidated affiliates, net of repayments | 2 | 2 |
Payments for (Proceeds from) Other Investing Activities | 6 | 2 |
Net cash provided from (used by) investing activities | (57) | (67) |
Financing Activities | ||
Line of Credit Facility, Increase (Decrease), Net | 400 | 0 |
Short-term debt, net | 14 | 3 |
Payments of Ordinary Dividends, Noncontrolling Interest | (7) | 0 |
Payments for Repurchase of Common Stock | (16) | (20) |
Net cash used by financing activities | 363 | (23) |
Effect of exchange rate changes on cash | (3) | |
Net increase (decrease) in cash and equivalents | 290 | (29) |
Cash and restricted cash at beginning of the period | $ 469 | $ 467 |
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 | $ 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 |
Payments for Repurchase of Common Stock | 0 | (2) | 2 | 0 | 0 | 0 | (2) | 0 |
Net income (loss) attributable to Visteon Corporation | 14 | |||||||
Net income (loss) | 24 | |||||||
Payments for Repurchase of Common Stock | (20) | |||||||
Net income (loss) attributable to Visteon Corporation | 21 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 118 | |||||||
Total equity | 605 | 487 | (2,257) | (212) | 1,623 | 1,332 | 1 | |
Net income (loss) | 8 | 1 | 7 | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (4) | (1) | (3) | 0 | (3) | 0 | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 6 | 0 | 6 | 0 | 0 | 0 | 6 | 0 |
Payments for Repurchase of Common Stock | (20) | 0 | (20) | (20) | 0 | 0 | 0 | 0 |
Dividends to non-controlling interests | (2) | (2) | 0 | 0 | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Visteon Corporation | 7 | 7 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 116 | |||||||
Total equity | 593 | 477 | (2,277) | (215) | 1,630 | 1,338 | 1 | |
Stockholders' Equity Attributable to Noncontrolling Interest | 115 | |||||||
Total equity | 595 | 115 | 480 | (2,275) | (267) | 1,679 | 1,342 | 1 |
Net income (loss) | (36) | (1) | (35) | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (37) | 0 | (37) | 0 | (37) | 0 | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2 | 0 | 2 | 7 | 0 | 0 | (5) | 0 |
Payments for Repurchase of Common Stock | (16) | 0 | (16) | (16) | 0 | 0 | 0 | 0 |
Dividends to non-controlling interests | (7) | (7) | 0 | 0 | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Visteon Corporation | (35) | |||||||
Net income (loss) | (78) | |||||||
Payments for Repurchase of Common Stock | (16) | |||||||
Net income (loss) attributable to Visteon Corporation | (80) | (80) | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 107 | |||||||
Total equity | 501 | 394 | (2,284) | (304) | 1,644 | 1,337 | 1 | |
Net income (loss) | (42) | 3 | (45) | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 5 | 0 | 5 | 0 | 5 | 0 | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4 | 0 | 4 | 0 | 0 | 0 | 4 | 0 |
Net income (loss) attributable to Visteon Corporation | (45) | (45) | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 110 | $ 110 | ||||||
Total equity | $ 468 | $ 358 | $ (2,284) | $ (299) | $ 1,599 | $ 1,341 | $ 1 |
Non-Consolidated Affiliates (No
Non-Consolidated Affiliates (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
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 YFVIC Transaction"). The purchase by YFVIC was financed through a shareholder loan from YF and external borrowings, guaranteed by Visteon, which was paid in 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: June 30 December 31 (In millions) 2020 2019 Payables due to YFVIC $ 10 $ 9 Exposure to loss in YFVIC: Investment in YFVIC $ 43 $ 43 Receivables due from YFVIC 39 41 Subordinated loan receivable from YFVIC 6 8 Maximum exposure to loss in YFVIC $ 88 $ 92 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2020 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets Other current assets are comprised of the following components: June 30 December 31 (In millions) 2020 2019 Recoverable taxes $ 51 $ 61 Joint venture receivables 39 41 Contractually reimbursable engineering costs 35 29 Prepaid assets and deposits 24 22 Royalty agreements 9 17 China bank notes — 16 Other 5 7 $ 163 $ 193 The Company receives bank notes from certain customers in China to settle trade accounts receivable. 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. The Company sold $73 million and $36 million of China bank notes during the six months ended June 30, 2020 and 2019, respectively. Remaining amounts outstanding at third party institutions related to sold bank notes will mature by December 31, 2020. Other non-current assets are comprised of the following components: June 30 December 31 (In millions) 2020 2019 Deferred tax assets $ 57 $ 59 Contractually reimbursable engineering costs 33 24 Recoverable taxes 19 28 Royalty agreements 13 11 Joint venture notes receivable 6 8 Other 18 20 $ 146 $ 150 Current and non-current contractually reimbursable engineering costs 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 $20 million during the remainder of 2020, $25 million in 2021, $12 million in 2022, $3 million in 2023 and $8 million in 2024 and beyond. |
Summary of Significant Accounti
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Statement [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The following table provides a reconciliation of changes in the product warranty and recall claims liability: Six Months Ended June 30 (In millions) 2020 2019 Beginning balance $ 49 $ 48 Accruals for products shipped 7 10 Changes in estimates (1) 1 Specific cause actions 4 3 Foreign currency translation — 1 Settlements (10) (9) Ending balance $ 49 $ 54 |
Non-Consolidated Affiliates (Ta
Non-Consolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Non-consolidated Affiliates [Abstract] | |
Summary of Investment in Non-consolidated Affiliates [Table Text Block] | the Company's investments in YFVIC is provided below: June 30 December 31 (In millions) 2020 2019 Payables due to YFVIC $ 10 $ 9 Exposure to loss in YFVIC: Investment in YFVIC $ 43 $ 43 Receivables due from YFVIC 39 41 Subordinated loan receivable from YFVIC 6 8 Maximum exposure to loss in YFVIC $ 88 $ 92 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets are comprised of the following components: June 30 December 31 (In millions) 2020 2019 Recoverable taxes $ 51 $ 61 Joint venture receivables 39 41 Contractually reimbursable engineering costs 35 29 Prepaid assets and deposits 24 22 Royalty agreements 9 17 China bank notes — 16 Other 5 7 $ 163 $ 193 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other non-current assets are comprised of the following components: June 30 December 31 (In millions) 2020 2019 Deferred tax assets $ 57 $ 59 Contractually reimbursable engineering costs 33 24 Recoverable taxes 19 28 Royalty agreements 13 11 Joint venture notes receivable 6 8 Other 18 20 $ 146 $ 150 |
Stock-holders' Equity and Non-c
Stock-holders' Equity and Non-controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Non-controlling Interests [Table Text Block] | The Company's non-controlling interests are as follows: June 30 December 31 (In millions) 2020 2019 Yanfeng Visteon Automotive Electronics Co., Ltd. $ 49 $ 56 Shanghai Visteon Automotive Electronics, Co., Ltd. 42 41 Changchun Visteon FAWAY Electronics, Co., Ltd. 18 17 Other 1 1 $ 110 $ 115 |
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 June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Changes in AOCI: Beginning balance $ (304) $ (212) $ (267) $ (216) Other comprehensive income (loss) before reclassification, net of tax 6 (1) (31) 4 Amounts reclassified from AOCI (1) (2) (1) (3) Ending balance $ (299) $ (215) $ (299) $ (215) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (191) $ (142) $ (153) $ (142) Other comprehensive income (loss) before reclassification, net of tax (a) 6 2 (32) 2 Ending balance (185) (140) (185) (140) Net investment hedge Beginning balance 12 1 4 (5) Other comprehensive income (loss) before reclassification, net of tax (a) (1) — 8 7 Amounts reclassified from AOCI (2) (2) (3) (3) Ending balance 9 (1) 9 (1) Benefit plans Beginning balance (112) (71) (114) (71) Other comprehensive income before reclassification, net of tax (b) 1 1 2 1 Amounts reclassified from AOCI — — 1 — Ending balance (111) (70) (111) (70) Unrealized hedging gain (loss) Beginning balance (13) — (4) 2 Other comprehensive loss before reclassification, net of tax (c) — (4) (9) (6) Amounts reclassified from AOCI 1 — 1 — Ending balance (12) (4) (12) (4) Total AOCI $ (299) $ (215) $ (299) $ (215) (a) There were no income tax effects for either period due to the valuation allowance. (b) Net tax expense was less than $1 million related to benefit plans for the three and six months ended June 30, 2020 and 2019. |
Non-Consolidated Affiliates (De
Non-Consolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2018 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 50 | $ 50 | $ 48 | |||
Loss Contingency, Estimate of Possible Loss | 88 | 88 | 92 | $ 57 | ||
Equity in net income of (loss) non-consolidated affiliates | 1 | $ 3 | 2 | $ 6 | ||
YFVIC [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Due to Related Parties, Noncurrent | 10 | 10 | 9 | |||
Due from Related Parties, Current | 39 | 39 | 41 | |||
Due from Related Parties, Noncurrent | 6 | 6 | 8 | |||
YFVE [Member] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | ||||
Yanfeng Visteon Electronics (China) Investment Company [Member] | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 43 | $ 43 | $ 43 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred Tax Assets, Net | $ 57 | $ 59 | |
Notes, Loans and Financing Receivable, Gross, Current | 73 | $ 36 | |
Advance Royalties, Noncurrent | 7 | 13 | |
Recoverable Taxes | 51 | 61 | |
Joint venture receivables | 39 | 41 | |
Contractual engineering cost recoveries, current | 35 | 29 | |
Prepaid assets and deposits | 24 | 22 | |
Royalty Agreements, Current | 9 | 17 | |
Nontrade Receivables, Current | 0 | 16 | |
Other Assets, Miscellaneous, Current | 5 | 7 | |
Other Assets, Current | 163 | 193 | |
Contractual engineering cost recoveries, non-current | 33 | 24 | |
Recoverable taxes, non current | 19 | 28 | |
Royalty Agreements, Noncurrent | 13 | ||
Financial Instruments, Owned, Derivatives and Other Contractual Agreements, at Fair Value | 11 | ||
Notes Receivable, Related Parties, Noncurrent | 6 | 8 | |
Other | 18 | 20 | |
Other Assets, Noncurrent | 146 | 150 | |
Recoverable Taxes | 51 | 61 | |
Prepaid assets and deposits | 24 | 22 | |
Joint venture receivables | 39 | 41 | |
Nontrade Receivables, Current | 0 | 16 | |
Royalty Agreements, Current | 9 | 17 | |
Contractual engineering cost recoveries, current | 35 | 29 | |
Other Assets, Miscellaneous, Current | 5 | 7 | |
Other Assets, Current | 163 | 193 | |
Recoverable taxes, non current | 19 | 28 | |
Royalty Agreements, Noncurrent | 13 | ||
Contractual engineering cost recoveries, non-current | 33 | 24 | |
Notes Receivable, Related Parties, Noncurrent | 6 | 8 | |
Financial Instruments, Owned, Derivatives and Other Contractual Agreements, at Fair Value | 11 | ||
Other | 18 | 20 | |
Other Assets, Noncurrent | 146 | $ 150 | |
Reimbursement of Engineering costs in current year | 20 | ||
Reimbursement of Engineering costs in following year | 25 | ||
Reimbursement for engineering costs expected in year two | 12 | ||
Reimbursement for engineering costs expected in year three | 3 | ||
Reimbursement for engineering costs expected in year four | $ 8 |
Stockholders' Equity and Non-co
Stockholders' Equity and Non-controlling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
(Loss) income from discontinued operations, net of tax | $ 0 | $ 0 | ||||||
Net income (loss) | (42) | $ (36) | 8 | $ 16 | $ (78) | $ 24 | ||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 6 | (1) | (31) | 4 | ||||
Other Comprehensive Income (Loss), Net of Tax | 5 | (37) | (4) | 5 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4 | 2 | 6 | 2 | ||||
Dividends to non-controlling interests | (7) | (2) | ||||||
Total equity | 468 | 501 | 593 | 605 | 468 | 593 | $ 595 | $ 582 |
Payments for Repurchase of Common Stock | 16 | 20 | 0 | 16 | 20 | |||
Stock Repurchase Program, Authorized Amount | 364 | 364 | ||||||
Loss Contingency Accrual | 8 | 8 | ||||||
Non-controlling interests | 110 | 110 | 115 | |||||
Accumulated other comprehensive income (loss) | (299) | (304) | (215) | (212) | (299) | (215) | (267) | (216) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1) | (2) | (1) | (3) | ||||
Income Tax Expense (Benefit) | 1 | |||||||
Income Tax Expense (Benefit) | 2 | 8 | 7 | 3 | ||||
Assets | 2,320 | 2,320 | 2,271 | |||||
Other Liabilities, Noncurrent | 62 | 62 | 72 | |||||
YFVE [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Non-controlling interests | 49 | 49 | 56 | |||||
SVAE - Shanghai Electronics [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Non-controlling interests | 42 | 42 | 41 | |||||
Visteon Interiors Korea Ltd. [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Non-controlling interests | 18 | 18 | 17 | |||||
Other Entity [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Non-controlling interests | 1 | 1 | 1 | |||||
Parent [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (45) | (35) | 7 | 14 | ||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 5 | (37) | (3) | 4 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4 | 2 | 6 | 2 | ||||
Dividends to non-controlling interests | 0 | 0 | ||||||
Total equity | 358 | 394 | 477 | 487 | 358 | 477 | 480 | 465 |
Payments for Repurchase of Common Stock | 16 | 20 | (2) | |||||
Noncontrolling Interest [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 3 | (1) | 1 | 2 | ||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | (1) | 1 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 0 | 0 | 0 | 0 | ||||
Dividends to non-controlling interests | (7) | (2) | ||||||
Total equity | 115 | 117 | ||||||
Payments for Repurchase of Common Stock | 0 | 0 | 2 | |||||
Non-controlling interests | 110 | 107 | 116 | 118 | 110 | 116 | ||
Accumulated Translation Adjustment [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 6 | 2 | (32) | 2 | ||||
Accumulated other comprehensive income (loss) | (185) | (191) | (140) | (142) | (185) | (140) | (153) | (142) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | 1 | 2 | 1 | ||||
Accumulated other comprehensive income (loss) | (111) | (112) | (70) | (71) | (111) | (70) | (114) | (71) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 1 | 0 | ||||
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 | 0 | (4) | (9) | (6) | ||||
Accumulated other comprehensive income (loss) | (12) | (13) | (4) | 0 | (12) | (4) | (4) | 2 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1 | 0 | 1 | 0 | ||||
Cross Currency Interest Rate Contract [Member] | Accumulated Translation Adjustment [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (1) | 0 | 8 | 7 | ||||
Derivatives used in Net Investment Hedge, Gain (Loss), Reclassified to Earnings, Net of Tax | (2) | (2) | (3) | (3) | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 9 | $ 12 | (1) | $ 1 | 9 | (1) | $ 4 | $ (5) |
Foreign Exchange Contract [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | (4) | (1) | 1 | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | 2 | 2 | 3 | ||||
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 1 | (1) | ||||||
Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | 8 | 7 | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2) | (2) | (3) | (3) | ||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | (4) | (8) | (6) | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | $ 0 | $ 1 | 0 | ||||
10b5-1 Share Repurchase Program [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Payments for Repurchase of Common Stock | $ 16 | $ 20 | ||||||
Open Market Share Repurchase Program [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Stock Repurchased During Period, Shares | 233,769 | 322,120 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $ 67.87 | $ 62.06 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2020 | |
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 Divestiture during 2016. 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 and six months ended June 30, 2020 and 2019. Discontinued operations are summarized as follows: Three Months Ended June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Cost of sales $ — $ — $ — $ (1) Restructuring, net — — — 1 Income from discontinued operations, net of tax $ — $ — $ — $ — |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following components: June 30 December 31 (In millions) 2020 2019 Raw materials $ 111 $ 100 Work-in-process 24 28 Finished products 35 41 $ 170 $ 169 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | A roll-forward of the carrying amounts of intangible assets is presented below: December 31, 2019 June 30, 2020 (In millions) Gross Intangibles Accumulated Amortization Net Intangibles Additions Foreign Currency Amortization Expense Net Intangibles Definite-Lived: Developed technology $ 40 $ (35) $ 5 $ — $ — $ (2) $ 3 Customer related 89 (51) 38 — (1) (4) 33 Capitalized software development 32 (5) 27 8 — (1) 34 Other 15 (4) 11 — — (1) 10 Subtotal 176 (95) 81 8 (1) (8) 80 Indefinite-Lived: Goodwill 46 — 46 — (1) — 45 Total $ 222 $ (95) $ 127 $ 8 $ (2) $ (8) $ 125 During the three and six month periods ended June 30, 2020 and 2019, the Company recorded amortization expense of $4 million and $8 million, respectively, related to definite-lived intangible assets. The Company currently estimates annual amortization expense to be $15 million, $18 million, $18 million, $15 million, $8 million and $8 million for the years ended 2020, 2021, 2022, 2023, 2024, and 2025, respectively. 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. |
Other liabilities
Other liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities Other current liabilities are summarized as follows: June 30 December 31 (In millions) 2020 2019 Product warranty and recall accruals $ 37 $ 34 Restructuring reserves 32 10 Deferred income 20 22 Royalties 13 19 Non-income taxes payable 11 17 Joint venture payables 11 9 Income taxes payable 5 7 Dividends payable to non-controlling interests 2 3 Other 25 26 $ 156 $ 147 Other non-current liabilities are summarized as follows: June 30 December 31 (In millions) 2020 2019 Derivative financial instruments $ 17 $ 14 Product warranty and recall accruals 12 15 Deferred income 8 9 Royalty agreements 7 13 Income tax reserves 5 5 Non-income tax reserves 1 1 Other 12 15 $ 62 $ 72 |
Employee Retirement Benefits
Employee Retirement Benefits | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and 2019 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2020 2019 2020 2019 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ (1) $ (1) Pension financing benefits (cost): Interest cost (6) (7) (1) (2) Expected return on plan assets 9 10 2 3 Amortization of losses and other — — (1) (1) Restructuring related pension cost: Special termination benefits (1) — (1) — Net pension benefit (cost) $ 2 $ 3 $ (2) $ (1) Pension financing benefits, net of $3 million for the three months ended June 30, 2020 and 2019 are classified as Other income, net on the Company's consolidated statements of comprehensive income. The Company's net periodic benefit costs for all defined benefit plans for the six month periods ended June 30, 2020 and 2019 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2020 2019 2020 2019 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ (1) $ (1) Pension financing benefits (cost): Interest cost (12) (15) (3) (4) Expected return on plan assets 19 20 4 5 Amortization of losses and other — — (1) (1) Restructuring related pension cost: Special termination benefits (2) — (1) — Net pension benefit (cost) $ 5 $ 5 $ (2) $ (1) Pension financing benefits, net of $7 million and $5 million for the six months ended June 30, 2020 and 2019, respectively are classified as Other income, net on the Company's consolidated statements of comprehensive income. Required 2020 contributions to the Company's defined benefit plans are approximately $20 million. The Company has contributed approximately $2 million to non-U.S. plans and is currently evaluating opportunities to defer remaining 2020 contributions, pursuant to relief measures offered by the U.S. and U.K. governments in light of COVID-19. |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-controlling Interests | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity and Non-controlling Interests | Stockholders’ Equity and Non-controlling Interests Share Repurchase Program During 2019, the Company purchased a total of 322,120 shares of Visteon common stock at an average price of $62.06 for an aggregate purchase amount of $20 million pursuant to various programs with third-party financial institutions. During the first quarter of 2020, the Company purchased a total of 233,769 shares of Visteon common stock at an average price of $67.87 for an aggregate purchase amount of $16 million pursuant to an agreement with a third-party financial institution. As of June 30, 2020, $364 million is available for additional share repurchases under the Board of Directors authorization which expires on December 31, 2020. The Company currently does not intend to repurchase additional shares. Non-Controlling Interests The Company's non-controlling interests are as follows: June 30 December 31 (In millions) 2020 2019 Yanfeng Visteon Automotive Electronics Co., Ltd. $ 49 $ 56 Shanghai Visteon Automotive Electronics, Co., Ltd. 42 41 Changchun Visteon FAWAY Electronics, Co., Ltd. 18 17 Other 1 1 $ 110 $ 115 Accumulated Other Comprehensive Income (Loss) Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Changes in AOCI: Beginning balance $ (304) $ (212) $ (267) $ (216) Other comprehensive income (loss) before reclassification, net of tax 6 (1) (31) 4 Amounts reclassified from AOCI (1) (2) (1) (3) Ending balance $ (299) $ (215) $ (299) $ (215) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (191) $ (142) $ (153) $ (142) Other comprehensive income (loss) before reclassification, net of tax (a) 6 2 (32) 2 Ending balance (185) (140) (185) (140) Net investment hedge Beginning balance 12 1 4 (5) Other comprehensive income (loss) before reclassification, net of tax (a) (1) — 8 7 Amounts reclassified from AOCI (2) (2) (3) (3) Ending balance 9 (1) 9 (1) Benefit plans Beginning balance (112) (71) (114) (71) Other comprehensive income before reclassification, net of tax (b) 1 1 2 1 Amounts reclassified from AOCI — — 1 — Ending balance (111) (70) (111) (70) Unrealized hedging gain (loss) Beginning balance (13) — (4) 2 Other comprehensive loss before reclassification, net of tax (c) — (4) (9) (6) Amounts reclassified from AOCI 1 — 1 — Ending balance (12) (4) (12) (4) Total AOCI $ (299) $ (215) $ (299) $ (215) (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 and six months ended June 30, 2020 and 2019. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic 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 June 30 Six Months Ended (In millions, except per share amounts) 2020 2019 2020 2019 Numerator: Net income (loss) attributable to Visteon $ (45) $ 7 $ (80) $ 21 Denominator: Average common stock outstanding - basic 27.8 28.1 27.9 28.1 Dilutive effect of performance based share units and other — 0.1 — 0.1 Diluted shares 27.8 28.2 27.9 28.2 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ (1.62) $ 0.25 $ (2.87) $ 0.75 Diluted earnings (loss) per share attributable to Visteon: $ (1.62) $ 0.25 $ (2.87) $ 0.74 Performance based share units of approximately 114,000 and 144,000 were excluded from the calculation of diluted loss per share because the effect of including them would have been anti-dilutive for the three and six months ended June 30, 2020, respectively. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Revenue Disclosure [Abstract] | |
Revenue Recognition [Text Block] | Revenue Recognition Disaggregated revenue by geographical market and product lines is as follows: Three Months Ended June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Geographical Markets Europe $ 132 $ 243 $ 386 $ 505 Americas 62 206 254 396 China Domestic 126 121 183 229 China Export 23 65 87 134 Other Asia-Pacific 38 142 154 299 Eliminations (10) (44) (50) (93) $ 371 $ 733 $ 1,014 $ 1,470 Three Months Ended June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Product Lines Instrument clusters $ 201 $ 323 $ 513 $ 637 Audio and infotainment 54 184 199 380 Information displays 54 122 163 245 Body and security 13 32 38 64 Climate controls 7 20 17 41 Telematics 17 11 29 22 Other 25 41 55 81 $ 371 $ 733 $ 1,014 $ 1,470 During the three and six months ended June 30, 2020, revenue recognized related performance obligations satisfied in previous periods represented less than 1% of consolidated net sales. The Company has no material contract assets, contract liabilities or capitalized contract acquisition costs as of June 30, 2020. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
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, net sales, 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, gain and 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 U.S. GAAP and does not purport to be a substitute for net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and is not intended to be a measure of cash flow available for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. In addition, the Company uses adjusted EBITDA (i) as a factor in incentive compensation decisions, (ii) to evaluate the effectiveness of the Company's business strategies and (iii) the Company's credit agreements use measures similar to adjusted EBITDA to measure compliance with certain covenants. Segment adjusted EBITDA and reconciliation to net income (loss) attributable to Visteon is as follows: Three Months Ended June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Net income (loss) attributable to Visteon Corporation $ (45) $ 7 $ (80) $ 21 Depreciation and amortization 25 24 50 49 Non-cash, stock-based compensation expense 4 6 9 11 Provision for income taxes 2 8 7 3 Interest expense, net 3 2 5 4 Net income attributable to non-controlling interests 3 1 2 3 Restructuring expense, net 4 — 37 1 Equity in net income of non-consolidated affiliates (1) (3) (2) (6) Other 2 1 2 1 Adjusted EBITDA $ (3) $ 46 $ 30 $ 87 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Cost of sales $ — $ — $ — $ (1) Restructuring, net — — — 1 Income from discontinued operations, net of tax $ — $ — $ — $ — |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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. (In millions) December 31, 2019 $ 10 Expense 33 Utilization (6) Foreign currency (1) March 31, 2020 $ 36 Expense 1 Change in estimate 3 Utilization (9) Foreign currency 1 June 30, 2020 $ 32 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, net consist of the following components: June 30 December 31 (In millions) 2020 2019 Raw materials $ 111 $ 100 Work-in-process 24 28 Finished products 35 41 $ 170 $ 169 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities [Abstract] | |
Other Current Liabilities [Table Text Block] | Other current liabilities are summarized as follows: June 30 December 31 (In millions) 2020 2019 Product warranty and recall accruals $ 37 $ 34 Restructuring reserves 32 10 Deferred income 20 22 Royalties 13 19 Non-income taxes payable 11 17 Joint venture payables 11 9 Income taxes payable 5 7 Dividends payable to non-controlling interests 2 3 Other 25 26 $ 156 $ 147 |
Other Noncurrent Liabilities [Table Text Block] | Other non-current liabilities are summarized as follows: June 30 December 31 (In millions) 2020 2019 Derivative financial instruments $ 17 $ 14 Product warranty and recall accruals 12 15 Deferred income 8 9 Royalty agreements 7 13 Income tax reserves 5 5 Non-income tax reserves 1 1 Other 12 15 $ 62 $ 72 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The Company’s short and long-term debt consists of the following: June 30 December 31 (In millions) 2020 2019 Short-Term Debt: Short-term borrowings $ 22 $ 37 Long-Term Debt: Term debt facility, net $ 348 $ 348 Revolving credit facility 400 — Total long-term debt, net $ 748 $ 348 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and 2019 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2020 2019 2020 2019 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ (1) $ (1) Pension financing benefits (cost): Interest cost (6) (7) (1) (2) Expected return on plan assets 9 10 2 3 Amortization of losses and other — — (1) (1) Restructuring related pension cost: Special termination benefits (1) — (1) — Net pension benefit (cost) $ 2 $ 3 $ (2) $ (1) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30 Six Months Ended (In millions, except per share amounts) 2020 2019 2020 2019 Numerator: Net income (loss) attributable to Visteon $ (45) $ 7 $ (80) $ 21 Denominator: Average common stock outstanding - basic 27.8 28.1 27.9 28.1 Dilutive effect of performance based share units and other — 0.1 — 0.1 Diluted shares 27.8 28.2 27.9 28.2 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ (1.62) $ 0.25 $ (2.87) $ 0.75 Diluted earnings (loss) per share attributable to Visteon: $ (1.62) $ 0.25 $ (2.87) $ 0.74 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 and six months ended June 30, 2020 and 2019 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) (In millions) 2020 2019 2020 2019 Three months ended June 30, Foreign currency risk - Cost of sales: Cash flow hedges $ 1 $ — $ — $ — Interest rate risk - Interest expense, net: Interest rate swap (1) (4) (1) — Net investment hedges (1) — 2 2 $ (1) $ (4) $ 1 $ 2 Six months ended June 30, Foreign currency risk - Cost of sales: Cash flow hedges $ (1) $ — $ — $ — Interest rate risk - Interest expense, net: Interest rate swap (8) (6) (1) — Net investment hedges 8 7 3 3 $ (1) $ 1 $ 2 $ 3 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: Six Months Ended June 30 (In millions) 2020 2019 Beginning balance $ 49 $ 48 Accruals for products shipped 7 10 Changes in estimates (1) 1 Specific cause actions 4 3 Foreign currency translation — 1 Settlements (10) (9) Ending balance $ 49 $ 54 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Geographical Markets Europe $ 132 $ 243 $ 386 $ 505 Americas 62 206 254 396 China Domestic 126 121 183 229 China Export 23 65 87 134 Other Asia-Pacific 38 142 154 299 Eliminations (10) (44) (50) (93) $ 371 $ 733 $ 1,014 $ 1,470 |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Product Lines Instrument clusters $ 201 $ 323 $ 513 $ 637 Audio and infotainment 54 184 199 380 Information displays 54 122 163 245 Body and security 13 32 38 64 Climate controls 7 20 17 41 Telematics 17 11 29 22 Other 25 41 55 81 $ 371 $ 733 $ 1,014 $ 1,470 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Adjusted EBITDA to Net Income Attributable to the Company [Table Text Block] | reconciliation to net income (loss) attributable to Visteon is as follows: Three Months Ended June 30 Six Months Ended (In millions) 2020 2019 2020 2019 Net income (loss) attributable to Visteon Corporation $ (45) $ 7 $ (80) $ 21 Depreciation and amortization 25 24 50 49 Non-cash, stock-based compensation expense 4 6 9 11 Provision for income taxes 2 8 7 3 Interest expense, net 3 2 5 4 Net income attributable to non-controlling interests 3 1 2 3 Restructuring expense, net 4 — 37 1 Equity in net income of non-consolidated affiliates (1) (3) (2) (6) Other 2 1 2 1 Adjusted EBITDA $ (3) $ 46 $ 30 $ 87 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2018 | |
Allowance for Doubtful Accounts Receivable, Current | $ 8 | $ 8 | $ 10 | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 88 | 88 | 92 | $ 57 | ||
Other expense, net | 3 | $ 3 | 7 | $ 5 | ||
Restricted cash | 4 | 4 | 3 | |||
Equity in net income of (loss) non-consolidated affiliates | (1) | $ (3) | (2) | $ (6) | ||
Investments in non-consolidated affiliates | 50 | 50 | 48 | |||
Operating Lease, Right-of-Use Asset | 157 | 157 | 165 | |||
YFVIC [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Due to Related Parties, Noncurrent | 10 | 10 | 9 | |||
Due from Related Parties, Current | 39 | 39 | 41 | |||
Due from Related Parties, Noncurrent | 6 | 6 | 8 | |||
Yanfeng Visteon Electronics (China) Investment Company [Member] | ||||||
Investments in non-consolidated affiliates | $ 43 | $ 43 | $ 43 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | $ 0 | $ 0 | ||
restructuring charges, net of reversal, including discontinued operations | 0 | 0 | ||
Income Tax Expense (Benefit) | 2 | 8 | $ 7 | $ 3 |
(Loss) income from discontinued operations, net of tax | $ 0 | $ 0 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | $ 1 | $ (1) | |||
Restructuring Charges | 1 | 33 | $ 0 | $ 1 | |
Restructuring charges, net of reversals | 4 | $ 0 | $ 37 | (1) | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Current, Beginning Balance | 36 | 10 | 10 | ||
Utilization | (9) | (6) | |||
Restructuring Reserve, Current, Ending Balance | 32 | 36 | 32 | ||
Restructuring Reserve, Accrual Adjustment | (3) | ||||
January 2020 Eng & SGA [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | (21) | ||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Current, Ending Balance | 17 | 17 | |||
Restructuring Costs | 24 | ||||
March 2020 Eng & SGA [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | (15) | ||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Current, Ending Balance | 8 | 8 | |||
Mexico 2020 Manufacturing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 1 | ||||
2019 Europe Manufacturing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | $ (2) | ||||
2018 South America Legacy [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Current, Ending Balance | 3 | 3 | |||
2016 Other Restructuring Program [Member] [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Current, Ending Balance | 2 | 2 | |||
2018 Engineering & SGA [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Current, Ending Balance | $ 2 | $ 2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory, Raw Materials, Net of Reserves | $ 111 | $ 100 |
Inventory, Work in Process, Net of Reserves | 24 | 28 |
Inventories, net | 170 | 169 |
Inventory, Finished Goods, Net of Reserves | $ 35 | $ 41 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | $ 183 | $ 183 | $ 176 |
Goodwill, Acquired During Period | 0 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (103) | (103) | (95) |
Net Carrying Value | 81 | ||
Goodwill | 0 | 0 | |
Goodwill and Indefinite-lived Intangible Assets, Net | 45 | 45 | 46 |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Goodwill, Gross | 45 | 45 | 46 |
Intangible Assets, Gross (Including Goodwill) | 228 | 228 | 222 |
Intangible Assets Net Including Goodwill | 125 | 125 | 127 |
Finite-lived Intangible Assets Acquired | 8 | ||
Amortization expense | (8) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (2) | ||
Intangible Assets, Net (Excluding Goodwill) | 80 | 80 | |
Intangible Assets Net Including Goodwill Recognized From Business Acquisition | $ 8 | ||
Developed Technology Rights [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Finite-Lived Intangible Assets, Gross | 40 | $ 40 | 40 |
Finite-Lived Intangible Assets, Accumulated Amortization | (37) | (37) | (35) |
Net Carrying Value | 3 | 3 | 5 |
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 | ||
Customer Relationships [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 87 | 87 | 89 |
Finite-Lived Intangible Assets, Accumulated Amortization | (54) | (54) | (51) |
Net Carrying Value | 33 | 33 | 38 |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Finite-lived Intangible Assets Acquired | 0 | ||
Amortization expense | (4) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ (1) | ||
Software and Software Development Costs [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Finite-Lived Intangible Assets, Gross | 40 | $ 40 | 32 |
Finite-Lived Intangible Assets, Accumulated Amortization | (6) | (6) | (5) |
Net Carrying Value | 34 | 34 | 27 |
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Finite-lived Intangible Assets Acquired | 8 | ||
Amortization expense | (1) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 0 | ||
Other [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 19 years | ||
Finite-Lived Intangible Assets, Gross | 16 | $ 16 | 15 |
Finite-Lived Intangible Assets, Accumulated Amortization | (6) | (6) | (4) |
Net Carrying Value | 10 | 10 | 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 | ||
Foreign Currency Gain (Loss) [Member] | |||
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (1) | ||
Goodwill [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | (1) | ||
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | 0 | ||
Electronics [Member] | |||
Goodwill and indefinite-lived intangible assets [Abstract] | |||
Amortization expense | $ 4 | $ 8 | |
Minimum [Member] | Customer Relationships [Member] | |||
Definite-Lived Intangible Assets [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Other Liabilities [Abstract] | |||
Royalty Agreements, Current | $ 9 | $ 9 | $ 17 |
Royalty Agreements, Noncurrent | 13 | 13 | |
Dividends Payable, Current | 2 | 2 | 3 |
Income taxes payable | 5 | 5 | 7 |
Rent and royalties | 13 | 13 | 19 |
Product warranty and recall accruals | 37 | 37 | 34 |
Restructuring Reserve | 32 | 32 | 10 |
Deferred income | 20 | 20 | 22 |
Joint venture payables | 11 | 11 | 9 |
Non-income taxes payable | 11 | 11 | 17 |
Other | 25 | 25 | 26 |
Other Liabilities, Current | 156 | 156 | 147 |
Hedging Liabilities, Noncurrent | 17 | 17 | 14 |
Product warranty and recall accruals | 12 | 12 | 15 |
Deferred income | 8 | 8 | 9 |
Advance Royalties, Noncurrent | 7 | 7 | 13 |
Income tax reserves | 5 | 5 | 5 |
Non-income tax reserves | 1 | 1 | 1 |
Other | 12 | 12 | 15 |
Other Liabilities, Noncurrent | 62 | 62 | 72 |
Other Liabilities, Noncurrent | 62 | 62 | 72 |
Assets | 2,320 | 2,320 | 2,271 |
Other current liabilities | 156 | 156 | $ 147 |
Amortization expense | (8) | ||
Electronics [Member] | |||
Amortization expense | $ 4 | $ 8 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2018 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Short-term debt [Abstract] | |||||
Other - short-term | $ 22,000,000 | $ 22,000,000 | $ 37,000,000 | ||
Short-term debt | 22,000,000 | 22,000,000 | 37,000,000 | ||
Long-term debt | |||||
Long-term debt | 748,000,000 | 748,000,000 | 348,000,000 | ||
Debt Instrument, face amount | 350,000,000 | 350,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | 75,000,000 | |||
borrowing capacity under swing line advances | 20,000,000 | 20,000,000 | |||
Amended LOC Agreement Facility Capacity | $ 5,000,000 | ||||
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 | 2,000,000 | 2,000,000 | |||
Debt Instrument, Collateral | 1,000,000 | $ 1,000,000 | |||
Debt Instrument, Interest Rate Terms | 1.75 | ||||
Long-term Debt [Member] | |||||
Long-term debt | |||||
Unsecured long-term debt, non-current | 748,000,000 | $ 748,000,000 | 348,000,000 | ||
LOC Facility issued by local affiliates [Member] | |||||
Long-term debt | |||||
Letters of Credit Outstanding, Amount | $ 12,000,000 | 12,000,000 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum Eurodollar rate used to establish the Base Rate | 2.99% | ||||
Long-term debt | |||||
Unsecured long-term debt, non-current | $ 400,000,000 | 400,000,000 | 0 | ||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum Eurodollar rate used to establish the Base Rate | 2.79% | ||||
Long-term debt | |||||
Unsecured long-term debt, non-current | $ 348,000,000 | 348,000,000 | $ 348,000,000 | ||
Affiliated Entity [Member] | |||||
Long-term debt | |||||
Line of Credit Facility, Capacity Available for Trade Purchases | $ 129,000,000 | $ 129,000,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||
Long-term debt | |||||
Line of Credit Facility, Interest Rate Description | 2.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Long-term debt | |||||
Line of Credit Facility, Interest Rate Description | 1.00% |
Benefit Expenses (Details)
Benefit Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Benefit Expenses | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 2 | |||
Other expense, net | $ 3 | $ 3 | 7 | $ 5 |
Income Tax Expense (Benefit) | 2 | 8 | 7 | 3 |
Scenario, Forecast [Member] | ||||
Benefit Expenses | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 20 | 20 | ||
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | (1) | (1) | (1) | (1) |
Benefit Expenses | ||||
Interest cost | (1) | (2) | (3) | (4) |
Expected return on plan assets | 2 | 3 | 4 | 5 |
Net pension (income) expense | 2 | 1 | 2 | 1 |
Defined Benefit Plan, Amortization of Gain (Loss) | (1) | (1) | (1) | (1) |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | (1) | (1) | ||
Domestic Plan [Member] | ||||
Benefit Expenses | ||||
Interest cost | (6) | (7) | (12) | (15) |
Expected return on plan assets | 9 | 10 | 19 | 20 |
Net pension (income) expense | 2 | $ 3 | 5 | $ 5 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | $ (1) | $ (2) |
Provision For Income Taxes (Det
Provision For Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Liability for Uncertainty in Income Taxes, Noncurrent | $ 5 | $ 5 | |||
Provision for income taxes | (2) | $ (8) | (7) | $ (3) | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (40) | 16 | (71) | 27 | |
Unrecognized Tax Benefits | 13 | 13 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6 | 6 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2 | 2 | $ 2 | ||
Jurisdictions where valuation allowances are maintained [Member] | |||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (101) | (33) | |||
Domestic Country And Foreign Country Witholding Taxes [Member] | |||||
Liability for Uncertainty in Income Taxes, Noncurrent | $ 3 | $ 3 | |||
Deferred Tax Liabilities, Net | $ 12 | $ 12 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2020 | Dec. 31, 2019 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 6 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2 | $ 2 | |
Reconciiation of Unrecognized Tax Benefits [Abstract] | |||
Unrecognized Tax Benefits | 13 | ||
Liability for Uncertain Tax Positions, Noncurrent | 5 | ||
Visteon Sistemas Automotivos [Member] | |||
Reconciiation of Unrecognized Tax Benefits [Abstract] | |||
Tax audit appeals payment | $ 15 | 11 | |
Worldwide [Member] | |||
Reconciiation of Unrecognized Tax Benefits [Abstract] | |||
Tax audit appeals and refund claims receivable | $ 14 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net income (loss) attributable to Visteon Corporation | $ (45) | $ 7 | $ (80) | $ 21 |
Denominator: | ||||
Average common stock outstanding - basic | 27,800,000 | 28,100,000 | 27,900,000 | 28,100,000 |
Dilutive effect of warrants and PSUs | 114,000 | 100,000 | 144,000 | 100,000 |
Diluted shares | 27,800,000 | 28,200,000 | 27,900,000 | 28,200,000 |
Basic earnings (loss) per share | ||||
Basic | $ (1.62) | $ 0.25 | $ (2.87) | $ 0.75 |
Diluted earnings (loss) per share | ||||
Diluted | $ (1.62) | $ 0.25 | $ (2.87) | $ 0.74 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | $ 759 | $ 759 | $ 390 | ||
Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Notional Amount | 40 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | $ (4) | (1) | $ 1 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | 2 | 2 | 3 | |
Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Notional Amount | 14 | 14 | |||
Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Notional Amount | 300 | 300 | 250 | ||
Currency Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Fair Value, Net | 6 | ||||
Designated as Hedging Instrument [Member] | Liability [Member] | Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Fair Value, Net | 1 | ||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 5 | ||||
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 | (1) | |||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 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 | (1) | (4) | (8) | (6) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | 0 | 1 | 0 | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 6 | ||||
Derivative Liability | (14) | (14) | (7) | ||
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 | (1) | 8 | 7 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2) | $ (2) | (3) | $ (3) | |
Derivative, Fair Value, Net | $ 4 | $ 4 | |||
Currency Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Notional Amount | $ 250 |
Derivatives Balance Sheet Locat
Derivatives Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 759 | $ 390 |
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $ 4 |
Derivatives Income Statement Lo
Derivatives Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (1) | $ (4) | $ (1) | $ 1 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | 2 | 2 | 3 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | (1) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 1 | (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 | (1) | 8 | 7 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2) | (2) | (3) | (3) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | (6) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1) | (4) | (8) | (6) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 1 | $ 0 | $ 1 | $ 0 |
Credit Risk (Details)
Credit Risk (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | $ 759 | $ 390 | ||
Ford And Affiliates [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Entity-wide revenue, major customer, percentage | 22.00% | 19.00% | ||
Nissan\Renault [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Entity-wide revenue, major customer, percentage | 13.00% | 14.00% | ||
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Concentration Risk [Line Items] | ||||
Investments, Fair Value Disclosure | $ 3 | $ 15 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | ||||
Amount of Bonds Issued by the Charter Township of Van Buren, Michigan | $ 28 | |||
Estimated Shortfall in Tax Revenues of the Township | 1 | |||
Revenue from Contract with Customer, Including Assessed Tax | 12 | |||
Loss Contingency Accrual | 8 | |||
Loss Contingency, Estimate of Possible Loss | 88 | $ 92 | $ 57 | |
Guarantee for Divested Entities Lease Payments | 5 | $ 1 | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Product Warranty Accrual, Beginning Balance | 48 | |||
Standard and Extended Product Warranty Accrual, Period Increase (Decrease) | 7 | 10 | ||
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | (1) | 1 | ||
Product warranty accrual, specific action increase (decrease) | 4 | 3 | ||
Standard and Extended Product Warranty Accrual, Foreign Currency Translation Gain (Loss) | 0 | 1 | ||
Standard and Extended Product Warranty Accrual, Decrease for Payments | 10 | 9 | ||
Product Warranty Accrual, Ending Balance | $ 49 | $ 54 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | $ 371,000,000 | $ 733,000,000 | $ 1,014,000,000 | $ 1,470,000,000 |
Net changes in transaction price | 0.01 | |||
hedging impact and eliminations | (10,000,000) | (44,000,000) | (50,000,000) | (93,000,000) |
Asia [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 38,000,000 | 142,000,000 | 154,000,000 | 299,000,000 |
Europe [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 132,000,000 | 243,000,000 | 386,000,000 | 505,000,000 |
Americas [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 62,000,000 | 206,000,000 | 254,000,000 | 396,000,000 |
All Countries [Domain] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 371,000,000 | 733,000,000 | 1,014,000,000 | 1,470,000,000 |
Instrument cluster [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 201,000,000 | 323,000,000 | 513,000,000 | 637,000,000 |
Audio and infotainment [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 54,000,000 | 184,000,000 | 199,000,000 | 380,000,000 |
Information displays [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 54,000,000 | 122,000,000 | 163,000,000 | 245,000,000 |
Climate controls [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 7,000,000 | 20,000,000 | 17,000,000 | 41,000,000 |
Body and security [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 13,000,000 | 32,000,000 | 38,000,000 | 64,000,000 |
Telematics [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 17,000,000 | 11,000,000 | 29,000,000 | 22,000,000 |
Other (includes HUD) [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 25,000,000 | 41,000,000 | 55,000,000 | 81,000,000 |
China Export [Member] | Asia [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | 23,000,000 | 65,000,000 | 87,000,000 | 134,000,000 |
China Domestic [Member] | Asia [Member] | ||||
net changes in transaction price [Line Items] | ||||
Disclosure on Geographic Areas, Description of Revenue from External Customers | $ 126,000,000 | $ 121,000,000 | $ 183,000,000 | $ 229,000,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||||||
Revenues | $ 371 | $ 733 | $ 1,014 | $ 1,470 | ||
Depreciation and Amortization Expenses for Continuing Operations | (25) | (24) | (50) | (49) | ||
Interest expense, net | 3 | 2 | 5 | 4 | ||
Equity in net income of non-consolidated affiliates | (1) | (3) | (2) | (6) | ||
Equity in net income of (loss) non-consolidated affiliates | (1) | (3) | (2) | (6) | ||
Other expense, net | (3) | (3) | (7) | (5) | ||
Provision for income taxes | (2) | (8) | (7) | (3) | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | ||||
Net income attributable to non-controlling interests | 3 | 1 | 2 | 3 | ||
Restructuring charges, net of reversals | 4 | 0 | 37 | (1) | ||
Allocated Share-based Compensation Expense | 4 | 6 | 9 | 11 | ||
Share-based Compensation | (9) | (11) | ||||
Adjusted EBITDA | (3) | 46 | 30 | 87 | ||
Net income (loss) attributable to Visteon Corporation | (45) | 7 | (80) | 21 | ||
Assets | 2,320 | 2,320 | $ 2,271 | |||
Restructuring Charges | 1 | $ 33 | 0 | 1 | ||
Other Nonoperating Income | $ 2 | $ 1 | $ 2 | $ 1 |