Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $.01 Per Share | |
Trading Symbol | VC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,996,638 | |
Amendment Flag | false | |
Entity Central Index Key | 0001111335 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 631 | $ 747 | $ 1,987 | $ 1,761 |
Cost of sales | (584) | (648) | (1,832) | (1,605) |
Gross margin | 47 | 99 | 155 | 156 |
Selling, general and administrative expenses | (42) | (45) | (131) | (140) |
Restructuring, net | 2 | (32) | 2 | (69) |
Interest expense | (2) | (6) | (8) | (14) |
Interest income | 0 | 1 | 2 | 4 |
Equity in net income of non-consolidated affiliates | 2 | 2 | 2 | 4 |
Other income, net | 4 | 3 | 13 | 10 |
Income (loss) before income taxes | 11 | 22 | 35 | (49) |
Provision for income taxes | (4) | (12) | (20) | (19) |
Net income (loss) | 7 | 10 | 15 | (68) |
Less: Net (income) loss attributable to non-controlling interests | (2) | (4) | (5) | (6) |
Net income (loss) attributable to Visteon Corporation | 5 | 6 | 10 | (74) |
Comprehensive income: | ||||
Comprehensive income (loss) | 1 | 30 | 10 | (80) |
Less: Comprehensive (income) loss attributable to non-controlling interests | (1) | (7) | (6) | (9) |
Comprehensive income (loss) attributable to Visteon Corporation | $ 0 | $ 23 | $ 4 | $ (89) |
Basic earnings (loss) per share: | ||||
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.18 | $ 0.22 | $ 0.36 | $ (2.65) |
Diluted earnings (loss) per share | ||||
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.18 | $ 0.21 | $ 0.35 | $ (2.65) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and equivalents | $ 397 | $ 496 |
Restricted cash | 4 | 4 |
Accounts receivable, net | 423 | 484 |
Inventories, net | 253 | 177 |
Other current assets | 156 | 180 |
Total current assets | 1,233 | 1,341 |
Property and equipment, net | 393 | 436 |
Intangible assets, net | 120 | 127 |
Right-of-use assets | 148 | 172 |
Investments in non-consolidated affiliates | 49 | 60 |
Other non-current assets | 117 | 135 |
Total assets | 2,060 | 2,271 |
LIABILITIES AND EQUITY | ||
Short-term debt | 5 | 0 |
Accounts payable | 416 | 500 |
Accrued employee liabilities | 74 | 83 |
Current lease liability | 29 | 32 |
Other current liabilities | 187 | 209 |
Total current liabilities | 711 | 824 |
Long-term debt, net | 349 | 349 |
Employee benefits | 285 | 322 |
Non-current lease liability | 125 | 146 |
Deferred tax liabilities | 26 | 28 |
Other non-current liabilities | 71 | 92 |
Stockholders’ equity: | ||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of September 30, 2021 and December 31, 2020) | 0 | 0 |
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 28 million shares outstanding as of September 30, 2021 and December 31, 2020) | 1 | 1 |
Additional paid-in capital | 1,344 | 1,348 |
Retained earnings | 1,633 | 1,623 |
Accumulated other comprehensive loss | (310) | (304) |
Treasury stock | (2,269) | (2,281) |
Total Visteon Corporation stockholders’ equity | 399 | 387 |
Non-controlling interests | 94 | 123 |
Total equity | 493 | 510 |
Total liabilities and equity | $ 2,060 | $ 2,271 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares, issued (in shares) | 55,000,000 | 55,000,000 |
Common stock, shares, outstanding (in shares) | 28,000,000 | 28,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities | ||
Net income (loss) | $ 15 | $ (68) |
Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 82 | 75 |
Non-cash stock-based compensation | 13 | 13 |
Equity in net loss (income) of non-consolidated affiliates, net of dividends remitted | 14 | (4) |
Other non-cash items | 4 | 1 |
Changes in assets and liabilities: | ||
Accounts receivable | 50 | 38 |
Inventories | (82) | 5 |
Accounts payable | (68) | 11 |
Other assets and other liabilities | (40) | 26 |
Net cash (used by) provided from operating activities | (12) | 97 |
Investing Activities | ||
Capital expenditures, including intangibles | (54) | (83) |
Contributions to equity method investments | (3) | (1) |
Loan repayments from non-consolidated affiliates | 2 | 2 |
Other | 5 | 5 |
Net cash used by investing activities | (50) | (77) |
Financing Activities | ||
Borrowings on revolving credit facility | 0 | 400 |
Payments on revolving credit facility | 0 | (400) |
Repurchase of common stock | 0 | (16) |
Dividends paid to non-controlling interests | (33) | (7) |
Short-term debt, net | 6 | (37) |
Other | 1 | 0 |
Net cash used by financing activities | (26) | (60) |
Effect of exchange rate changes on cash | (11) | 6 |
Net decrease in cash, equivalents, and restricted cash | (99) | (34) |
Cash, equivalents, and restricted cash at beginning of the period | 500 | 469 |
Cash, equivalents, and restricted cash at end of the period | $ 401 | $ 435 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Visteon Corporation Stockholders' Equity | Non-Controlling Interests |
Beginning balance at Dec. 31, 2019 | $ 595 | $ 1 | $ 1,342 | $ 1,679 | $ (267) | $ (2,275) | $ 480 | $ 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (36) | (35) | (35) | (1) | ||||
Other comprehensive income (loss) | (37) | (37) | (37) | |||||
Stock-based compensation, net | 2 | (5) | 7 | 2 | ||||
Repurchase of shares of common stock | (16) | (16) | (16) | |||||
Cash dividends | (7) | (7) | ||||||
Ending balance at Mar. 31, 2020 | 501 | 1 | 1,337 | 1,644 | (304) | (2,284) | 394 | 107 |
Beginning balance at Dec. 31, 2019 | 595 | 1 | 1,342 | 1,679 | (267) | (2,275) | 480 | 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (68) | |||||||
Ending balance at Sep. 30, 2020 | 502 | 1 | 1,344 | 1,605 | (282) | (2,283) | 385 | 117 |
Beginning balance at Mar. 31, 2020 | 501 | 1 | 1,337 | 1,644 | (304) | (2,284) | 394 | 107 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (42) | (45) | (45) | 3 | ||||
Other comprehensive income (loss) | 5 | 5 | 5 | |||||
Stock-based compensation, net | 4 | 4 | 4 | |||||
Ending balance at Jun. 30, 2020 | 468 | 1 | 1,341 | 1,599 | (299) | (2,284) | 358 | 110 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 10 | 6 | 6 | 4 | ||||
Other comprehensive income (loss) | 20 | 17 | 17 | 3 | ||||
Stock-based compensation, net | 4 | 3 | 1 | 4 | ||||
Ending balance at Sep. 30, 2020 | 502 | 1 | 1,344 | 1,605 | (282) | (2,283) | 385 | 117 |
Beginning balance at Dec. 31, 2020 | 510 | 1 | 1,348 | 1,623 | (304) | (2,281) | 387 | 123 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 19 | 16 | 16 | 3 | ||||
Other comprehensive income (loss) | (18) | (17) | (17) | (1) | ||||
Stock-based compensation, net | (2) | (11) | 9 | (2) | ||||
Dividends declared to non-controlling interests | (3) | (3) | ||||||
Ending balance at Mar. 31, 2021 | 506 | 1 | 1,337 | 1,639 | (321) | (2,272) | 384 | 122 |
Beginning balance at Dec. 31, 2020 | 510 | 1 | 1,348 | 1,623 | (304) | (2,281) | 387 | 123 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 15 | |||||||
Ending balance at Sep. 30, 2021 | 493 | 1 | 1,344 | 1,633 | (310) | (2,269) | 399 | 94 |
Beginning balance at Mar. 31, 2021 | 506 | 1 | 1,337 | 1,639 | (321) | (2,272) | 384 | 122 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (11) | (11) | (11) | |||||
Other comprehensive income (loss) | 19 | 16 | 16 | 3 | ||||
Stock-based compensation, net | 5 | 4 | 1 | 5 | ||||
Cash dividends | (1) | (1) | ||||||
Dividends declared to non-controlling interests | (31) | (31) | ||||||
Ending balance at Jun. 30, 2021 | 487 | 1 | 1,341 | 1,628 | (305) | (2,271) | 394 | 93 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 7 | 5 | 5 | 2 | ||||
Other comprehensive income (loss) | (6) | (5) | (5) | (1) | ||||
Stock-based compensation, net | 5 | 3 | 2 | 5 | ||||
Ending balance at Sep. 30, 2021 | $ 493 | $ 1 | $ 1,344 | $ 1,633 | $ (310) | $ (2,269) | $ 399 | $ 94 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation - Interim Financial Statements The condensed consolidated financial statements of Visteon Corporation (the "Company" or "Visteon") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") have been condensed or omitted pursuant to such rules and regulations. These interim condensed 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, stockholders' equity, and cash flows of the Company for the interim periods presented. Interim results are not necessarily indicative of full-year results. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported herein. Considerable judgment is involved in making these determinations and the use of different estimates or assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results could differ from those reported herein. Events and changes in circumstances arising after September 30, 2021, including those resulting from the impacts of COVID-19 and the subsequent semiconductor supply shortage, as further described in Note 14, "Commitments and Contingencies", will be reflected in management's estimates in future periods. Allowance for Doubtful Accounts: The Com pany establishes an allowance for doubtful accounts for accounts receivable based on the current expected credit loss impairment model (“CECL”). The Company applies a historical loss rate based on historic write-offs by region to aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses, as necessary. The Company may also record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. The following table provides a rollforward of changes in the allowance for doubtful accounts: Nine Months Ended (In millions) 2021 2020 Beginning balance $ 4 $ 10 Provision 1 2 Recoveries — (3) Write-offs charged against the allowance — (4) Ending balance $ 5 $ 5 Recently Adopted Accounting Pronouncements Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting." Subsequently, in 2021, the FASB issued ASU 2021-01, "Reference Rate Reform", to further clarify and expand certain aspects of ASC 848. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions related to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. The guidance was effective upon issuance and is generally applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. |
Non-Consolidated Affiliates
Non-Consolidated Affiliates | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Non-Consolidated Affiliates | Non-Consolidated Affiliates Investments in Affiliates The Company's investments in non-consolidated equity method affiliates include the following: September 30, December 31, (In millions) 2021 2020 Yanfeng Visteon Investment Co., Ltd. ("YFVIC") (50%) $ 34 $ 50 Other 15 10 Total investments in non-consolidated affiliates $ 49 $ 60 Variable Interest Entities The Company evaluates 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. The Company consolidates a VIE if it is determined to be the primary beneficiary of the VIE having both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determined that YFVIC is a VIE. The Company holds a variable interest in YFVIC primarily related to its ownership interests and subordinated financial support. The Company and Yangfeng Automotive Trim Systems Co. Ltd. ("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. The Company's investments in YFVIC consists of the following: September 30, December 31, (In millions) 2021 2020 Payables due to YFVIC $ 11 $ 9 Exposure to loss in YFVIC: Investment in YFVIC $ 34 $ 50 Receivables due from YFVIC 36 53 Subordinated loan receivable from YFVIC — 6 Maximum exposure to loss in YFVIC $ 70 $ 109 During the nine months ended 2021, YFVIC declared and made a $16 million dividend to the Company. Equity Investments In 2018, the Company committed to make a $15 million investment in two funds managed by venture capital firms principally focused on the automotive sector pursuant to limited partnership agreements. As a limited partner in each fund, the Company will periodically make capital contributions toward this total commitment amount. As of September 30, 2021, the Company has contributed a total of $7 million toward the aggregate investment commitments. These limited partnerships are classified as equity method investments. |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | 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, including potential impacts related to COVID-19 and the related semiconductor shortage, 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 o n the Company or its results of operations, financial position and cash flows. During the third quarter of 2021, the Company released $2 million of net restructuring expense due to a change in estimate related to previous restructuring actions. During the second quarter of 2021, the Company approved and recorded $2 million of net restructuring expense for various restructuring actions, primarily impacting Brazil. As of September 30, 2021, $1 million remains accrued related to these programs. During 2020 the Company approved various restructuring programs impacting engineering, administrative and manufacturing functions to improve efficiency and rationalize the Company’s footprint. The Company recorded $69 million of net restructuring expense for cash severance, retention, and termination costs for the nine months ended September 30, 2020 related to these programs . As of September 30, 2021, $12 million remains accrued related to these programs. The Company anticipates that the activities associated with the current restructuring programs will be substantially complete by the end of 2022. During 2018, the Company approved a restructuring program impacting legacy employees at a South America facility due to the wind-down of certain products. As of September 30, 2021, $2 million remains accrued related to this program. As of September 30, 2021, the Company retained restructuring reserves as part of the Company's divestiture of the majority of its global Interiors business (the "Interiors Divestiture") of $1 million associated with completed programs for the fundamental reorganization of operations at facilities in Brazil and France. Restructuring Reserves The Company’s restructuring reserves and related activity are summarized below and include amounts associated with discontinued operations. (In millions) December 31, 2020 $ 49 Expense — Change in estimate (1) Utilization (16) Foreign currency (1) March 31, 2021 $ 31 Expense 2 Change in estimate (1) Utilization (9) Foreign currency — June 30, 2021 $ 23 Expense — Change in estimate (2) Utilization (4) Foreign currency — September 30, 2021 $ 17 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following components: September 30, December 31, (In millions) 2021 2020 Raw materials $ 193 $ 114 Work-in-process 26 25 Finished products 34 38 $ 253 $ 177 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets, net are comprised of the following: September 30, 2021 December 31, 2020 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Definite-Lived: Developed technology 10 $ 40 $ (38) $ 2 $ 41 $ (38) $ 3 Customer related 10 95 (71) 24 95 (64) 31 Capitalized software development 5 47 (9) 38 44 (7) 37 Other 32 15 (8) 7 14 (7) 7 Subtotal 197 (126) 71 194 (116) 78 Indefinite-Lived: Goodwill 49 — 49 49 — 49 Total $ 246 $ (126) $ 120 $ 243 $ (116) $ 127 Capitalized software development consists of software development costs intended for integration into customer products. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other current assets are comprised of the following components: September 30, December 31, (In millions) 2021 2020 Recoverable taxes $ 52 $ 52 Joint venture receivables 37 53 Contractually reimbursable engineering costs 34 31 Prepaid assets and deposits 24 18 Royalty agreements 4 7 China bank notes — 15 Other 5 4 $ 156 $ 180 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 redeemed $114 million and $104 million of China bank notes during the nine months ended September 30, 2021 and 2020, respectively. Remaining amounts outstanding at third-party institutions related to sold bank notes will mature by the end of the first quarter of 2022. Other non-current assets are comprised of the following components: September 30, December 31, (In millions) 2021 2020 Deferred tax assets $ 54 $ 55 Contractually reimbursable engineering costs 35 31 Recoverable taxes 11 21 Royalty agreements 2 8 Joint venture notes receivable — 7 Other 15 13 $ 117 $ 135 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 $10 million during the remainder of 2021, $31 million in 2022, $18 million in 2023, $6 million in 2024 and $4 million in 2025 and beyond. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities are summarized as follows: September 30, December 31, (In millions) 2021 2020 Product warranty and recall accruals $ 46 $ 52 Deferred income 45 46 Non-income taxes payable 18 15 Restructuring reserves 15 39 Royalty reserves 14 13 Joint venture payables 11 9 Income taxes payable 8 5 Dividends payable to non-controlling interests 3 2 Other 27 28 $ 187 $ 209 Other non-current liabilities are summarized as follows: September 30, December 31, (In millions) 2021 2020 Derivative financial instruments $ 18 $ 38 Product warranty and recall accruals 12 12 Deferred income 12 7 Income tax reserves 7 6 Royalty agreements 5 6 Restructuring reserves 2 10 Other 15 13 $ 71 $ 92 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt consists of the following: September 30, December 31, (In millions) 2021 2020 Short-Term Debt: Short-term borrowings $ 5 $ — Long-Term Debt: Term debt facility, net $ 349 $ 349 Short-Term Debt Short-term borrowings are related to affiliate borrowings and are primarily payable in Brazilian real. As of September 30, 2021, the Company has $5 million short-term borrowing and there is $191 million available capacity under affiliate credit facilities. Long-Term Debt As of September 30, 2021, the Company has an amended credit agreement ("Credit Agreement") which includes a $350 million Term Facility maturing March 24, 2024 and a $400 million Revolving Credit Facility which matures the earlier of (i) December 24, 2024, (ii) 90 days prior to the scheduled maturity of the Term Facility, or (iii) the date of the termination of the Company's credit agreement. On March 19, 2020, the Company borrowed the entire amount of revolving loans available under the Revolving Credit Facility to increase its cash position and maximize its flexibility in response to unprecedented uncertainty related to the impact of COVID-19. On September 24, 2020, the Company fully repaid the amount borrowed under the Revolving Credit Facility following stronger than expected industry recovery and improved Company performance in the third quarter of 2020. The Company has no outstanding borrowings on the Revolving Credit Facility as of September 30, 2021. Interest on the Term Facility loans accrue at a rate equal to a LIBOR-based rate plus an applicable margin of 1.75% per annum. Loans under the Company's Revolving Credit Facility accrue interest at a rate equal to a LIBOR-based rate plus an applicable margin of between 1.00% - 2.00%, as determined by the Company's total gross leverage ratio. The Credit Agreement requires compliance 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 3.50:1.00. During any period when the Company’s corporate and family ratings meet investment grade ratings, certain of the negative covenants are suspended. As of September 30, 2021, the Company was in compliance with all its debt covenants. 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 borrowings. Any amount of the facility utilized for letters of credit or swing line loans outstanding will reduce the amount available under the existing Revolving Credit Facility. The Company may request increases in the limits under the Credit Agreement and may request the addition of one or more term loan facilities. 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. All obligations under the Credit Agreement and obligations with respect to certain cash management services and swap transaction agreements between the Company and its lenders are unconditionally guaranteed by certain of the Company’s subsidiaries. Under the terms of the Credit Agreement, any amounts outstanding are secured by a first-priority perfected lien on substantially all property of the Company and the subsidiaries party to the security agreement, subject to certain limitations. Other The Company has a $5 million letter of credit facility, whereby the Company is required to maintain a cash 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 September 30, 2021. Additionally, the Company had $11 million of locally issued letters of credit with less than $1 million of collateral as of September 30, 2021, to support various tax appeals, customs arrangements and other obligations at its local affiliates. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company's net periodic benefit costs for all defined benefit plans for the three month periods ended September 30, 2021 and 2020 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2021 2020 2021 2020 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ (1) $ — Pension financing benefits (cost): Interest cost $ (5) $ (6) $ (1) $ (2) Expected return on plan assets 9 10 2 2 Amortization of losses and other — — (1) (1) Total pension financing benefits: 4 4 — (1) Restructuring related pension cost: Special termination benefits — (1) — — Net pension benefit (cost) $ 4 $ 3 $ (1) $ (1) Pension financing benefits, net of $4 million and $3 million for the three months ended September 30, 2021 and 2020, respectively, are classified as Other income, net on the Company's condensed consolidated statements of comprehensive income. The Company's net periodic benefit costs for all defined benefit plans for the nine month periods ended September 30, 2021 and 2020 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2021 2020 2021 2020 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ (1) $ (1) Pension financing benefits (costs): Interest cost $ (13) $ (18) $ (4) $ (5) Expected return on plan assets 28 29 6 6 Amortization of losses and other (2) — (2) (2) Total pension financing benefits: 13 11 — (1) Restructuring related pension cost: Special termination benefits — (3) — (1) Net pension benefit (cost) $ 13 $ 8 $ (1) $ (3) Pension financing benefits, net of $13 million and $10 million for the nine months ended September 30, 2021 and 2020, respectively, are classified as Other income, net on the Company's condensed consolidated statements of comprehensive income. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three and nine month period ended September 30, 2021, the Company recorded a provision for income tax of $4 million and $20 million, respectively, 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 enacted tax law changes. Pretax losses in jurisdictions where valuation allowances are maintained and no income tax benefits are recognized totaled $48 million and $106 million for the nine month periods ended September 30, 2021 and 2020, respectively, resulting in an increase in the Company's effective tax rate in those years. The Company's provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against income before income taxes, excluding equity in net income of non-consolidated affiliates for the period. Effective tax rates vary from period to period as separate calculations are performed for those countries where the Company's operations are profitable and whose results continue to be tax-effected and for those countries where full deferred tax valuation allowances exist and are maintained. In determining the estimated annual effective tax rate, the Company analyzes various factors, including but not limited to, forecasts of projected annual earnings, taxing jurisdictions in which the pretax income and/or pretax losses will be generated and available tax planning strategies. The changing and volatile macro-economic conditions connected with the ongoing COVID-19 pandemic including the semiconductor supply shortage and other supply chain impacts may cause fluctuations in forecasted earnings before income taxes. As such, the Company's effective tax rate could be subject to volatility as forecasted earnings before income taxes are impacted by events which cannot be predicted. 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. 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 Company evaluates its deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. This assessment considers, among other matters, the nature, frequency, and amount of recent losses, the duration of statutory carryforward periods, and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. If (i) recent improvements to financial results continue in the U.S., or (ii) recovery of the global economy after the COVID-19 pandemic including the semiconductor shortages occurs faster than expected, the Company believes it is possible that sufficient positive evidence may be available to release all, or a portion, of its U.S. valuation allowance in the next nine Unrecognized Tax Benefits Gross unrecognized tax benefits as of September 30, 2021 and December 31, 2020 were $15 million and $14 million, respectively. Of these amounts, approximately $8 million and $7 million, respectively, represent the amount of unrecognized benefits that, if recognized, would impact the effective tax rate. The gross unrecognized tax benefit differs from that which would impact the effective tax rate due to uncertain tax positions embedded in other deferred tax attributes carrying a full valuation allowance. During the nine months ended September 30, 2021, the Company recorded a $2 million increase in tax expense related to uncertain tax positions attributable to certain related party transactions. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense and related amounts accrued at September 30, 2021 and December 31, 2020 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) of $7 million is included in Other non-current liabilities on the condensed consolidated balance sheet, while $3 million is reflected as a reduction of a deferred tax asset related to a net operating loss included in Other non-current assets on the condensed 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, in connection with this assessment the Company recorded a long-term tax deposit during 2013. During the third quarter of 2021, the Company received a favorable judgement related to this deposit. The Company reclassified $9 million associated with this deposit to other current assets and expects to receive settlement during the fourth quarter of 2021. The remaining deposit of approximately $2 million has been applied against other long-term labor-related tax debts pursuant to the judgement. Income tax refund claims associated with other jurisdictions, total $5 million as of September 30, 2021, and are included in Other non-current assets on the condensed consolidated balance sheets. |
Stockholders' Equity and Non-co
Stockholders' Equity and Non-controlling Interests | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity and Non-controlling Interests | Stockholders’ Equity and Non-controlling Interests Non-Controlling Interests The Company's non-controlling interests are as follows: September 30, December 31, (In millions) 2021 2020 Shanghai Visteon Automotive Electronics, Co., Ltd. $ 44 $ 44 Yanfeng Visteon Automotive Electronics Co., Ltd. 29 57 Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. 19 20 Other 2 2 $ 94 $ 123 Accumulated Other Comprehensive Income (Loss) Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Changes in AOCI: Beginning balance $ (305) $ (299) $ (304) $ (267) Other comprehensive income (loss) before reclassification, net of tax (7) 18 (11) (13) Amounts reclassified from AOCI 2 (1) 5 (2) Ending balance $ (310) $ (282) $ (310) $ (282) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (131) $ (185) $ (115) $ (153) Other comprehensive income (loss) before reclassification, net of tax (a) (13) 28 (29) (4) Ending balance (144) (157) (144) (157) Net investment hedge Beginning balance (5) 9 (15) 4 Other comprehensive income (loss) before reclassification, net of tax (a) 5 (9) 18 (1) Amounts reclassified from AOCI (1) (2) (4) (5) Ending balance (1) (2) (1) (2) Benefit plans Beginning balance (162) (111) (165) (114) Other comprehensive income (loss) before reclassification, net of tax (b) 1 (2) 1 — Amounts reclassified from AOCI 1 1 4 2 Ending balance (160) (112) (160) (112) Unrealized hedging gain (loss) Beginning balance (7) (12) (9) (4) Other comprehensive income (loss) before reclassification, net of tax (c) — 1 (1) (8) Amounts reclassified from AOCI 2 — 5 1 Ending balance (5) (11) (5) (11) Total AOCI $ (310) $ (282) $ (310) $ (282) (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 nine months ended September 30, 2021 and 2020. (c) There were no income tax effects related to unrealized hedging gain (loss) for either period due to the valuation allowance. Share Repurchase Program 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
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 calculated 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 September 30, Nine Months Ended (In millions, except per share amounts) 2021 2020 2021 2020 Numerator: Net income (loss) attributable to Visteon $ 5 $ 6 $ 10 $ (74) Denominator: Average common stock outstanding - basic 28.0 27.8 27.9 27.9 Dilutive effect of performance based share units and other 0.4 0.2 0.4 — Diluted shares 28.4 28.0 28.3 27.9 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ 0.18 $ 0.22 $ 0.36 $ (2.65) Diluted earnings (loss) per share attributable to Visteon: $ 0.18 $ 0.21 $ 0.35 $ (2.65) Performance based share units of approximately 181,000 were excluded from the calculation of diluted loss per share because the effect of including them would have been anti-dilutive for the nine months ended September 30, 2020. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [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 countries 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 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 condensed 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, Brazilian real, and Mexican peso intended to mitigate the variability of cash flows denominated in currency other than the hedging entity's functional currency. As of September 30, 2021 and December 31, 2020, the Company had foreign currency economic derivative instruments with notional amounts of $21 million and $18 million, respectively. At September 30, 2021, these instruments are undesignated hedges of local currency value of recognized net monetary balances that are denominated in a currency other than the particular entity's functional currency. The aggregate fair value of these derivative instruments is an asset of less than $1 million and an asset of $1 million as of September 30, 2021 and December 31, 2020, respectively. Cross Currency Swaps: The Company has executed cross-currency swap transactions intended to mitigate 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 factors other than spot exchange rate variability are excluded from the measurement of hedge ineffectiveness and reported directly in earnings each reporting period. As of September 30, 2021 and December 31, 2020, the Company had cross currency swaps with an aggregate notional value of $250 million. The aggregate fair value of these derivatives is a non-current liability of $12 million and $27 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, a gain of $5 million is expected to be reclassified out of accumulated other comprehensive income into earnings within the next 12 months. 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 September 30, 2021 and December 31, 2020, the Company had interest rate swaps with an aggregate notional value of $300 million. The aggregate fair value of these derivative transactions is a non-current liability of $6 million and $11 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, a loss of $6 million is expected to be reclassified out of accumulated other comprehensive income into earnings within the next twelve months. Financial Statement Presentation Gains and losses on derivative financial instruments for the three and nine months ended September 30, 2021 and 2020 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in (Income) Loss (In millions) 2021 2020 2021 2020 2021 2020 Three months ended September 30, Foreign currency risk - Cost of sales: Cash flow hedges $ — $ 1 $ — $ — $ — $ — Interest rate risk - Interest expense, net: Interest rate swap — — (2) — — — Net investment hedges 5 (9) 1 2 — — $ 5 $ (8) $ (1) $ 2 $ — $ — Nine months ended September 30, Foreign currency risk - Cost of sales: Cash flow hedges $ — $ — $ — $ — $ 1 $ — Interest rate risk - Interest expense, net: Interest rate swap (1) (8) (5) (1) — — Net investment hedges 18 (1) 4 5 — — $ 17 $ (9) $ (1) $ 4 $ 1 $ — Items Not Carried at Fair Value The Company's fair value of debt was $353 million and $347 million as of September 30, 2021 and December 31, 2020, 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 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 16% and 13% of the Company's balance as of September 30, 2021 and December 31, 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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 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. The Settlement Agreement also provided that the Company would negotiate in good faith with the Township, pursuant to the terms of the Settlement Agreement, in the event that property tax payments were inadequate to permit the Township to meet its payment obligations with respect to the bonds. In October 2019, the Township notified the Company that the Township had incurred a shortfall under the bonds of less than $1 million and requested that the Company meet to discuss payment. The parties met in November 2019 but no agreement was reached. On December 9, 2019, the Township commenced litigation against the Company in Michigan’s Wayne County Circuit Court claiming damages of $28 million related to what the Township alleges to be the current shortfall and projected future shortfalls under the bonds. The Company disputes the factual and legal assertions made by the Township and intends to defend the matter vigorously. The Company is not able to estimate the possible loss or range of loss in connection with this matter. In November 2013, the Company and 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 $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 the Company 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 $9 million for claims aggregating $54 million in Brazil as of September 30, 2021. 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. The adverse impacts of the COVID-19 pandemic led to a significant reduction in vehicle production in the first half of 2020, which was followed by increased consumer demand and vehicle production schedules in the second half of 2020, particularly in the fourth quarter. Because semiconductor suppliers have been unable to rapidly reallocate production to serve the automotive industry, the surge in demand has led to a worldwide semiconductor supply shortage. The Company's semiconductor suppliers, along with most automotive component supply companies that use semiconductors, have been unable to fully meet the vehicle production demands of our customers due to events which are outside the Company's control, including but not limited to, the COVID-19 pandemic, the global semiconductor shortage, a fire at a semiconductor fabrication facility in Japan, significant weather events impacting semiconductor supplier facilities in the southern United States, and other extraordinary events. The Company is working closely with suppliers and customers to attempt to minimize potential adverse impacts of these events. Certain customers have communicated that they expect the Company to absorb some of the financial impact of their reduced production and are reserving their rights to claim damages arising from supply shortages, however, the Company believes it has a number of legal defenses to such claims and intends to defend any such claims vigorously. The Company has also notified semiconductor suppliers that it will seek compensation from them for failure to deliver sufficient quantities. The Company is not able to estimate the possible loss or range of loss in connection with this matter at this time. 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 As part of the agreements involving the divestiture of the Climate business (the "Climate Transaction") and Interiors Divestiture, the Company continues to provide lease guarantees to divested Climate and Interiors entities. As of September 30, 2021, the Company has $5 million and $2 million of outstanding guarantees, related to the divested Climate and Interiors entities, respectively. The guarantees represent the maximum potential amount that the Company could be required to pay under the guarantees in the event of default by the guaranteed parties. The guarantees will generally cease upon expiration of current lease agreement which expire in 2026 and 2024 for the Climate and Interiors entities, respectively. Product Warranty and Recall Amounts accrued for product warranty and recall claims are based on management’s best estimates of the amounts that will ultimately be required to settle such items. The Company’s estimates for product warranty and recall obligations are developed with support from its sales, engineering, quality and legal functions and include due consideration of contractual arrangements, past experience, current claims and related information, production changes, industry and regulatory developments, and various other considerations. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The following table provides a rollforward of changes in the product warranty and recall claims liability: Nine Months Ended September 30, (In millions) 2021 2020 Beginning balance $ 64 $ 49 Provisions 12 16 Changes in estimates 1 (2) Currency/other (3) 1 Settlements (16) (14) Ending balance $ 58 $ 50 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; product liability claims; 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 paragraphs where losses are deemed probable and reasonably estimable. It is possible, however, that some of the matters discussed in the foregoing paragraphs 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 September 30, 2021 and that are in excess of established reserves. The Company does not reasonably expect, except as otherwise described herein, based on its analysis, that any adverse outcome from such matters would have a material effect on the Company’s financial condition, results of operations or cash flows, although such an outcome is possible. |
Segment Information and Revenue
Segment Information and Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information and Revenue Recognition | Segment Information and Revenue Recognition The Company’s single reportable segment is Electronics. The Company's Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment systems, audio systems, telematics solutions, head-up displays, as well as battery monitoring systems. As the Company has one reportable segment, total assets, depreciation, amortization, and capital expenditures are equal to consolidated results. 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-U.S. GAAP financial measure, as defined below), and operating assets. 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. The Company uses Adjusted EBITDA as a factor in incentive compensation decisions and to evaluate the effectiveness of the Company's business strategies. In addition, 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 September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Net income (loss) attributable to Visteon Corporation $ 5 $ 6 $ 10 $ (74) Depreciation and amortization 27 25 82 75 Non-cash, stock-based compensation expense 4 4 13 13 Provision for income taxes 4 12 20 19 Interest expense, net 2 5 6 10 Net income (loss) attributable to non-controlling interests 2 4 5 6 Restructuring, net (2) 32 (2) 69 Equity in net income of non-consolidated affiliates (2) (2) (2) (4) Other 2 1 4 3 Adjusted EBITDA $ 42 $ 87 $ 136 $ 117 Revenue Recognition Disaggregated net sales by geographical market and product lines is as follows: Three Months Ended September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Geographical Markets Europe $ 212 $ 281 $ 707 $ 667 Americas 158 192 519 446 China Domestic 145 140 384 323 China Export 51 58 148 145 Other Asia-Pacific 94 107 309 261 Eliminations (29) (31) (80) (81) $ 631 $ 747 $ 1,987 $ 1,761 Three Months Ended September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Product Lines Instrument clusters $ 345 $ 388 $ 1,062 $ 901 Audio and infotainment 122 134 369 333 Information displays 71 135 282 298 Body and security 25 28 88 66 Telematics 15 14 49 43 Climate controls 13 14 42 31 Other 40 34 95 89 $ 631 $ 747 $ 1,987 $ 1,761 During the three and nine months ended September 30, 2021, revenue recognized related to 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 September 30, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation - Interim Financial Statements | Basis of Presentation - Interim Financial Statements The condensed consolidated financial statements of Visteon Corporation (the "Company" or "Visteon") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") have been condensed or omitted pursuant to such rules and regulations. These interim condensed 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, stockholders' equity, and cash flows of the Company for the interim periods presented. Interim results are not necessarily indicative of full-year results. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported herein. Considerable judgment is involved in making these determinations and the use of different estimates or assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results could differ from those reported herein. Events and changes in circumstances arising after September 30, 2021, including those resulting from the impacts of COVID-19 and the subsequent semiconductor supply shortage, as further described in Note 14, "Commitments and Contingencies", will be reflected in management's estimates in future periods. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: The Com pany establishes an allowance for doubtful accounts for accounts receivable based on the current expected credit loss impairment model (“CECL”). The Company applies a historical loss rate based on historic write-offs by region to aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses, as necessary. The Company may also record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting." Subsequently, in 2021, the FASB issued ASU 2021-01, "Reference Rate Reform", to further clarify and expand certain aspects of ASC 848. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions related to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. The guidance was effective upon issuance and is generally applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Allowance for doubtful accounts receivable | The following table provides a rollforward of changes in the allowance for doubtful accounts: Nine Months Ended (In millions) 2021 2020 Beginning balance $ 4 $ 10 Provision 1 2 Recoveries — (3) Write-offs charged against the allowance — (4) Ending balance $ 5 $ 5 |
Non-Consolidated Affiliates (Ta
Non-Consolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Investment in Non-consolidated Affiliates | The Company's investments in non-consolidated equity method affiliates include the following: September 30, December 31, (In millions) 2021 2020 Yanfeng Visteon Investment Co., Ltd. ("YFVIC") (50%) $ 34 $ 50 Other 15 10 Total investments in non-consolidated affiliates $ 49 $ 60 The Company's investments in YFVIC consists of the following: September 30, December 31, (In millions) 2021 2020 Payables due to YFVIC $ 11 $ 9 Exposure to loss in YFVIC: Investment in YFVIC $ 34 $ 50 Receivables due from YFVIC 36 53 Subordinated loan receivable from YFVIC — 6 Maximum exposure to loss in YFVIC $ 70 $ 109 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The Company’s restructuring reserves and related activity are summarized below and include amounts associated with discontinued operations. (In millions) December 31, 2020 $ 49 Expense — Change in estimate (1) Utilization (16) Foreign currency (1) March 31, 2021 $ 31 Expense 2 Change in estimate (1) Utilization (9) Foreign currency — June 30, 2021 $ 23 Expense — Change in estimate (2) Utilization (4) Foreign currency — September 30, 2021 $ 17 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories, net consist of the following components: September 30, December 31, (In millions) 2021 2020 Raw materials $ 193 $ 114 Work-in-process 26 25 Finished products 34 38 $ 253 $ 177 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Intangible assets, net are comprised of the following: September 30, 2021 December 31, 2020 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Definite-Lived: Developed technology 10 $ 40 $ (38) $ 2 $ 41 $ (38) $ 3 Customer related 10 95 (71) 24 95 (64) 31 Capitalized software development 5 47 (9) 38 44 (7) 37 Other 32 15 (8) 7 14 (7) 7 Subtotal 197 (126) 71 194 (116) 78 Indefinite-Lived: Goodwill 49 — 49 49 — 49 Total $ 246 $ (126) $ 120 $ 243 $ (116) $ 127 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets are comprised of the following components: September 30, December 31, (In millions) 2021 2020 Recoverable taxes $ 52 $ 52 Joint venture receivables 37 53 Contractually reimbursable engineering costs 34 31 Prepaid assets and deposits 24 18 Royalty agreements 4 7 China bank notes — 15 Other 5 4 $ 156 $ 180 |
Schedule of Other Noncurrent Assets | Other non-current assets are comprised of the following components: September 30, December 31, (In millions) 2021 2020 Deferred tax assets $ 54 $ 55 Contractually reimbursable engineering costs 35 31 Recoverable taxes 11 21 Royalty agreements 2 8 Joint venture notes receivable — 7 Other 15 13 $ 117 $ 135 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are summarized as follows: September 30, December 31, (In millions) 2021 2020 Product warranty and recall accruals $ 46 $ 52 Deferred income 45 46 Non-income taxes payable 18 15 Restructuring reserves 15 39 Royalty reserves 14 13 Joint venture payables 11 9 Income taxes payable 8 5 Dividends payable to non-controlling interests 3 2 Other 27 28 $ 187 $ 209 |
Schedule of Other Noncurrent Liabilities | Other non-current liabilities are summarized as follows: September 30, December 31, (In millions) 2021 2020 Derivative financial instruments $ 18 $ 38 Product warranty and recall accruals 12 12 Deferred income 12 7 Income tax reserves 7 6 Royalty agreements 5 6 Restructuring reserves 2 10 Other 15 13 $ 71 $ 92 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: September 30, December 31, (In millions) 2021 2020 Short-Term Debt: Short-term borrowings $ 5 $ — Long-Term Debt: Term debt facility, net $ 349 $ 349 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Retirement Plan expenses | The Company's net periodic benefit costs for all defined benefit plans for the three month periods ended September 30, 2021 and 2020 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2021 2020 2021 2020 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ (1) $ — Pension financing benefits (cost): Interest cost $ (5) $ (6) $ (1) $ (2) Expected return on plan assets 9 10 2 2 Amortization of losses and other — — (1) (1) Total pension financing benefits: 4 4 — (1) Restructuring related pension cost: Special termination benefits — (1) — — Net pension benefit (cost) $ 4 $ 3 $ (1) $ (1) The Company's net periodic benefit costs for all defined benefit plans for the nine month periods ended September 30, 2021 and 2020 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2021 2020 2021 2020 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ (1) $ (1) Pension financing benefits (costs): Interest cost $ (13) $ (18) $ (4) $ (5) Expected return on plan assets 28 29 6 6 Amortization of losses and other (2) — (2) (2) Total pension financing benefits: 13 11 — (1) Restructuring related pension cost: Special termination benefits — (3) — (1) Net pension benefit (cost) $ 13 $ 8 $ (1) $ (3) |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Non-controlling Interests | The Company's non-controlling interests are as follows: September 30, December 31, (In millions) 2021 2020 Shanghai Visteon Automotive Electronics, Co., Ltd. $ 44 $ 44 Yanfeng Visteon Automotive Electronics Co., Ltd. 29 57 Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. 19 20 Other 2 2 $ 94 $ 123 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Changes in AOCI: Beginning balance $ (305) $ (299) $ (304) $ (267) Other comprehensive income (loss) before reclassification, net of tax (7) 18 (11) (13) Amounts reclassified from AOCI 2 (1) 5 (2) Ending balance $ (310) $ (282) $ (310) $ (282) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (131) $ (185) $ (115) $ (153) Other comprehensive income (loss) before reclassification, net of tax (a) (13) 28 (29) (4) Ending balance (144) (157) (144) (157) Net investment hedge Beginning balance (5) 9 (15) 4 Other comprehensive income (loss) before reclassification, net of tax (a) 5 (9) 18 (1) Amounts reclassified from AOCI (1) (2) (4) (5) Ending balance (1) (2) (1) (2) Benefit plans Beginning balance (162) (111) (165) (114) Other comprehensive income (loss) before reclassification, net of tax (b) 1 (2) 1 — Amounts reclassified from AOCI 1 1 4 2 Ending balance (160) (112) (160) (112) Unrealized hedging gain (loss) Beginning balance (7) (12) (9) (4) Other comprehensive income (loss) before reclassification, net of tax (c) — 1 (1) (8) Amounts reclassified from AOCI 2 — 5 1 Ending balance (5) (11) (5) (11) Total AOCI $ (310) $ (282) $ (310) $ (282) (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 nine months ended September 30, 2021 and 2020. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below provides details underlying the calculations of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended (In millions, except per share amounts) 2021 2020 2021 2020 Numerator: Net income (loss) attributable to Visteon $ 5 $ 6 $ 10 $ (74) Denominator: Average common stock outstanding - basic 28.0 27.8 27.9 27.9 Dilutive effect of performance based share units and other 0.4 0.2 0.4 — Diluted shares 28.4 28.0 28.3 27.9 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ 0.18 $ 0.22 $ 0.36 $ (2.65) Diluted earnings (loss) per share attributable to Visteon: $ 0.18 $ 0.21 $ 0.35 $ (2.65) |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Gains and losses on derivative financial instruments for the three and nine months ended September 30, 2021 and 2020 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in (Income) Loss (In millions) 2021 2020 2021 2020 2021 2020 Three months ended September 30, Foreign currency risk - Cost of sales: Cash flow hedges $ — $ 1 $ — $ — $ — $ — Interest rate risk - Interest expense, net: Interest rate swap — — (2) — — — Net investment hedges 5 (9) 1 2 — — $ 5 $ (8) $ (1) $ 2 $ — $ — Nine months ended September 30, Foreign currency risk - Cost of sales: Cash flow hedges $ — $ — $ — $ — $ 1 $ — Interest rate risk - Interest expense, net: Interest rate swap (1) (8) (5) (1) — — Net investment hedges 18 (1) 4 5 — — $ 17 $ (9) $ (1) $ 4 $ 1 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table provides a rollforward of changes in the product warranty and recall claims liability: Nine Months Ended September 30, (In millions) 2021 2020 Beginning balance $ 64 $ 49 Provisions 12 16 Changes in estimates 1 (2) Currency/other (3) 1 Settlements (16) (14) Ending balance $ 58 $ 50 |
Segment Information and Reven_2
Segment Information and Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Adjusted EBITDA to Net Income Attributable to the Company | Segment Adjusted EBITDA and reconciliation to net income (loss) attributable to Visteon is as follows: Three Months Ended September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Net income (loss) attributable to Visteon Corporation $ 5 $ 6 $ 10 $ (74) Depreciation and amortization 27 25 82 75 Non-cash, stock-based compensation expense 4 4 13 13 Provision for income taxes 4 12 20 19 Interest expense, net 2 5 6 10 Net income (loss) attributable to non-controlling interests 2 4 5 6 Restructuring, net (2) 32 (2) 69 Equity in net income of non-consolidated affiliates (2) (2) (2) (4) Other 2 1 4 3 Adjusted EBITDA $ 42 $ 87 $ 136 $ 117 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Disaggregated net sales by geographical market and product lines is as follows: Three Months Ended September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Geographical Markets Europe $ 212 $ 281 $ 707 $ 667 Americas 158 192 519 446 China Domestic 145 140 384 323 China Export 51 58 148 145 Other Asia-Pacific 94 107 309 261 Eliminations (29) (31) (80) (81) $ 631 $ 747 $ 1,987 $ 1,761 |
Schedule of Revenue from External Customers by Products and Services | Three Months Ended September 30, Nine Months Ended (In millions) 2021 2020 2021 2020 Product Lines Instrument clusters $ 345 $ 388 $ 1,062 $ 901 Audio and infotainment 122 134 369 333 Information displays 71 135 282 298 Body and security 25 28 88 66 Telematics 15 14 49 43 Climate controls 13 14 42 31 Other 40 34 95 89 $ 631 $ 747 $ 1,987 $ 1,761 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 4 | $ 10 |
Provision | 1 | 2 |
Recoveries | 0 | (3) |
Write-offs charged against the allowance | 0 | (4) |
Ending balance | $ 5 | $ 5 |
Non-Consolidated Affiliates - N
Non-Consolidated Affiliates - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2018 | |
Fair Value Measured at Net Asset Value Per Share | ||
Related Party Transaction [Line Items] | ||
Investments | $ 7 | $ 15 |
YFVIC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Dividends | $ 16 |
Non-Consolidated Affiliates - I
Non-Consolidated Affiliates - Investments in Non-Consolidated Equity Method Affiliates (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Investment in YFVIC | $ 49 | $ 60 |
Yanfeng Visteon Investment Co., Ltd. ("YFVIC") | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | 34 | 50 |
Other | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | $ 15 | $ 10 |
YFVIC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 50.00% |
Non-Consolidated Affiliates - S
Non-Consolidated Affiliates - Summary of Investments in YFVIC (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Payables due to YFVIC | $ 11 | $ 9 |
Exposure to loss in YFVIC: | ||
Investment in YFVIC | 49 | 60 |
Maximum exposure to loss in YFVIC | 70 | 109 |
Receivables due from YFVIC | ||
Exposure to loss in YFVIC: | ||
Due from related parties | 36 | 53 |
Subordinated loan receivable from YFVIC | ||
Exposure to loss in YFVIC: | ||
Due from related parties | 0 | 6 |
Yanfeng Visteon Investment Co., Ltd. ("YFVIC") | ||
Exposure to loss in YFVIC: | ||
Investment in YFVIC | $ 34 | $ 50 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, net | $ (2) | $ 32 | $ (2) | $ 69 | ||
Restructuring reserve, current | 15 | 15 | $ 39 | |||
BRAZIL | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, net | $ 2 | |||||
Restructuring reserve, current | 1 | 1 | ||||
2018 South America Legacy | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve, current | 2 | 2 | ||||
2016 Other Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve, current | 1 | 1 | ||||
March 2020 Eng & SGA | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve, current | $ 12 | $ 12 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Restructuring Reserves and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 23 | $ 31 | $ 49 |
Expense | 0 | 2 | 0 |
Change in estimate | (2) | (1) | (1) |
Utilization | (4) | (9) | (16) |
Foreign currency | 0 | 0 | (1) |
Restructuring reserve, ending balance | $ 17 | $ 23 | $ 31 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 193 | $ 114 |
Work-in-process | 26 | 25 |
Finished products | 34 | 38 |
Inventories, net | $ 253 | $ 177 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 197 | $ 194 |
Accumulated Amortization | (126) | (116) |
Net Intangibles | 71 | 78 |
Goodwill and indefinite-lived intangible assets [Abstract] | ||
Goodwill, gross | 49 | 49 |
Goodwill net | 49 | 49 |
Total goodwill and intangible assets, gross | 246 | 243 |
Total goodwill and intangible assets, net | $ 120 | 127 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 10 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 40 | 41 |
Accumulated Amortization | (38) | (38) |
Net Intangibles | $ 2 | 3 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 10 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 95 | 95 |
Accumulated Amortization | (71) | (64) |
Net Intangibles | $ 24 | 31 |
Capitalized software development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 5 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 47 | 44 |
Accumulated Amortization | (9) | (7) |
Net Intangibles | $ 38 | 37 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 32 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 15 | 14 |
Accumulated Amortization | (8) | (7) |
Net Intangibles | $ 7 | $ 7 |
Other Assets - Current Assets (
Other Assets - Current Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Recoverable taxes | $ 52 | $ 52 |
Joint venture receivables | 37 | 53 |
Contractually reimbursable engineering costs | 34 | 31 |
Prepaid assets and deposits | 24 | 18 |
Royalty agreements | 4 | 7 |
China bank notes | 0 | 15 |
Other | 5 | 4 |
Other current assets | $ 156 | $ 180 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Other Assets [Abstract] | ||
Amount of China bank notes sold | $ 114 | $ 104 |
Reimbursement for engineering costs in current year | 10 | |
Reimbursement for engineering costs in following year | 31 | |
Reimbursement for engineering costs expected in year two | 18 | |
Reimbursement for engineering costs expected in year three | 6 | |
Reimbursement for engineering costs expected in year four and beyond | $ 4 |
Other Assets - Noncurrent Asset
Other Assets - Noncurrent Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Deferred tax assets | $ 54 | $ 55 |
Contractually reimbursable engineering costs | 35 | 31 |
Recoverable taxes | 11 | 21 |
Royalty agreements | 2 | 8 |
Joint venture notes receivable | 0 | 7 |
Other | 15 | 13 |
Other noncurrent assets | $ 117 | $ 135 |
Other Liabilities - Other Curre
Other Liabilities - Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Product warranty and recall accruals | $ 46 | $ 52 |
Deferred income | 45 | 46 |
Non-income taxes payable | 18 | 15 |
Restructuring reserves | 15 | 39 |
Royalty reserves | 14 | 13 |
Joint venture payables | 11 | 9 |
Income taxes payable | 8 | 5 |
Dividends payable to non-controlling interests | 3 | 2 |
Other | 27 | 28 |
Total other current liabilities | $ 187 | $ 209 |
Other Liabilities - Other Noncu
Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Derivative financial instruments | $ 18 | $ 38 |
Product warranty and recall accruals | 12 | 12 |
Deferred income | 12 | 7 |
Income tax reserves | 7 | 6 |
Royalty agreements | 5 | 6 |
Restructuring reserves | 2 | 10 |
Other | 15 | 13 |
Total other noncurrent liabilities | $ 71 | $ 92 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term borrowings | ||
Long-term debt | ||
Short-term borrowings | $ 5 | $ 0 |
Term Loan | ||
Long-term debt | ||
Term debt facility, net | $ 349 | $ 349 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 1.75% | |
Maximum borrowing capacity, revolving credit facility | $ 75 | |
Maximum borrowing capacity, swing line advances | 20 | |
Amended LOC agreement facility capacity | $ 5 | |
Required collateral equal to the aggregate stated amount of the LOCs (percent) | 103.00% | |
LOC collateral percentage for draws in non-U.S. currencies (percent) | 110.00% | |
Amount secured by cash collateral | $ 2 | |
Debt instrument, collateral amount | 1 | |
Short-term borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 5 | $ 0 |
Maximum | ||
Debt Instrument [Line Items] | ||
Financial maintenance covenant | 3.50 | |
London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 1.00% | |
London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 2.00% | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Face amount | $ 350 | |
LOC Facility issued by local affiliates | ||
Debt Instrument [Line Items] | ||
Amount secured by cash collateral | 11 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Face amount | 400 | |
Affiliated Entity | ||
Debt Instrument [Line Items] | ||
Working capital facility availability | $ 191 |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
U.S. Plans | ||||
Pension service cost: | ||||
Service cost | $ 0 | $ 0 | ||
Pension financing benefits (cost): | ||||
Interest cost | $ (5) | $ (6) | (13) | (18) |
Expected return on plan assets | 9 | 10 | 28 | 29 |
Amortization of losses and other | (2) | 0 | ||
Total pension financing benefits: | 4 | 4 | 13 | 11 |
Restructuring related pension cost: | ||||
Special termination benefits | (1) | 0 | (3) | |
Net pension benefit (cost) | 4 | 3 | 13 | 8 |
Foreign Plan | ||||
Pension service cost: | ||||
Service cost | (1) | (1) | (1) | |
Pension financing benefits (cost): | ||||
Interest cost | (1) | (2) | (4) | (5) |
Expected return on plan assets | 2 | 2 | 6 | 6 |
Amortization of losses and other | (1) | (1) | (2) | (2) |
Total pension financing benefits: | (1) | 0 | (1) | |
Restructuring related pension cost: | ||||
Special termination benefits | 0 | (1) | ||
Net pension benefit (cost) | $ (1) | $ (1) | $ (1) | $ (3) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Other income, net | $ 4 | $ 3 | $ 13 | $ 10 |
Expected future employer contributions in remaining year | $ 19 | 19 | ||
U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cash contributions by employer | 12 | |||
Foreign Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cash contributions by employer | $ 5 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Examination [Line Items] | ||||
Provision for income taxes | $ 4 | $ 12 | $ 20 | $ 19 |
Pretax losses from continuing operations | $ (11) | $ (22) | $ (35) | 49 |
Minimum | ||||
Income Tax Examination [Line Items] | ||||
Valuation allowance release period | 9 months | |||
Maximum | ||||
Income Tax Examination [Line Items] | ||||
Valuation allowance release period | 24 months | |||
Jurisdictions where valuation allowances are maintained | ||||
Income Tax Examination [Line Items] | ||||
Pretax losses from continuing operations | $ 48 | $ 106 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 15 | $ 15 | $ 14 |
Unrecognized tax benefits that would impact effective tax rate | 8 | 8 | 7 |
Unrecognized tax benefits, increase from related party transactions | 2 | ||
Income tax expense and related amounts accrued | 2 | 2 | $ 2 |
Liability for uncertainty in income taxes, noncurrent | 7 | 7 | |
Tax audit appeals refund | 9 | ||
Tax audit appeals, refund, labor related tax debts | 2 | ||
Domestic Country And Foreign Country Witholding Taxes | |||
Income Tax Contingency [Line Items] | |||
Liability for uncertainty in income taxes, noncurrent | 3 | 3 | |
Worldwide | |||
Income Tax Contingency [Line Items] | |||
Tax audit appeals and refund claims receivable | $ 5 | $ 5 |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-controlling Interests - Schedule of Non-controlling Interests (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 94 | $ 123 |
Shanghai Visteon Automotive Electronics, Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 44 | 44 |
Yanfeng Visteon Automotive Electronics Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 29 | 57 |
Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 19 | 20 |
Other | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 2 | $ 2 |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-controlling Interests - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | $ 387 | |||
Other comprehensive income (loss) before reclassification, net of tax | $ (7) | $ 18 | (11) | $ (13) |
Amounts reclassified from AOCI | 2 | (1) | 5 | (2) |
Accumulated other comprehensive income (loss), ending balance | 399 | 399 | ||
Income tax expense (benefit) | 1 | 1 | 1 | 1 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (305) | (299) | (304) | (267) |
Accumulated other comprehensive income (loss), ending balance | (310) | (282) | (310) | (282) |
Accumulated Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (131) | (185) | (115) | (153) |
Other comprehensive income (loss) before reclassification, net of tax | (13) | 28 | (29) | (4) |
Accumulated other comprehensive income (loss), ending balance | (144) | (157) | (144) | (157) |
Accumulated Translation Adjustment | Cross Currency Interest Rate Contract | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (5) | 9 | (15) | 4 |
Other comprehensive income (loss) before reclassification, net of tax | 5 | (9) | 18 | (1) |
Amounts reclassified from AOCI | (1) | (2) | (4) | (5) |
Accumulated other comprehensive income (loss), ending balance | (1) | (2) | (1) | (2) |
Accumulated Defined Benefit Plans Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (162) | (111) | (165) | (114) |
Other comprehensive income (loss) before reclassification, net of tax | 1 | (2) | 1 | 0 |
Amounts reclassified from AOCI | 1 | 1 | 4 | 2 |
Accumulated other comprehensive income (loss), ending balance | (160) | (112) | (160) | (112) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (7) | (12) | (9) | (4) |
Other comprehensive income (loss) before reclassification, net of tax | 0 | 1 | (1) | (8) |
Amounts reclassified from AOCI | 2 | 0 | 5 | 1 |
Accumulated other comprehensive income (loss), ending balance | $ (5) | $ (11) | $ (5) | $ (11) |
Stockholders' Equity and Non-_5
Stockholders' Equity and Non-controlling Interests - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock | $ 0 | $ 16 | |
Open Market Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (in shares) | 233,769 | ||
Treasury stock acquired, average price (in dollars per share) | $ 67.87 | ||
10b5-1 Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock | $ 16 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income (loss) attributable to Visteon | $ 5 | $ 6 | $ 10 | $ (74) |
Denominator: | ||||
Average common stock outstanding - basic (in shares) | 28,000,000 | 27,800,000 | 27,900,000 | 27,900,000 |
Dilutive effect of performance based share units and other (in shares) | 400,000 | 200,000 | 400,000 | 0 |
Diluted shares (in shares) | 28,400,000 | 28,000,000 | 28,300,000 | 27,900,000 |
Basic earnings (loss) per share | ||||
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.18 | $ 0.22 | $ 0.36 | $ (2.65) |
Diluted earnings (loss) per share attributable to Visteon: | ||||
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.18 | $ 0.21 | $ 0.35 | $ (2.65) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 181,000 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Debt instrument | $ 353 | $ 347 |
Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 250 | 250 |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 21 | 18 |
Swap | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 300 | 300 |
Designated as Hedging Instrument | Liability | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative asset, fair value net | 1 | 1 |
Designated as Hedging Instrument | Liability | Currency Swap | ||
Derivative [Line Items] | ||
Derivative asset, fair value net | 12 | 27 |
Designated as Hedging Instrument | Cash Flow Hedging | Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative instruments, gain (loss) reclassification from accumulated OCI to income, estimated amount to be transferred | 5 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative instruments, gain (loss) reclassification from accumulated OCI to income, estimated amount to be transferred | (6) | |
Derivative liability | $ 6 | $ 11 |
Credit Concentration Risk | Accounts Receivable | Ford And Affiliates | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 16.00% | 13.00% |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Financial Statement Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded Income (Loss) into AOCI, net of tax | $ 5 | $ (8) | $ 17 | $ (9) |
Reclassified from AOCI into Income (Loss) | (1) | 2 | (1) | 4 |
Recorded in (Income) Loss | 1 | |||
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded Income (Loss) into AOCI, net of tax | 1 | 0 | 0 | |
Reclassified from AOCI into Income (Loss) | 0 | 0 | ||
Recorded in (Income) Loss | 0 | 0 | 1 | 0 |
Designated as Hedging Instrument | Foreign Exchange Contract | Net Investment Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded Income (Loss) into AOCI, net of tax | 5 | (9) | 18 | (1) |
Reclassified from AOCI into Income (Loss) | 1 | 2 | 4 | 5 |
Recorded in (Income) Loss | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded Income (Loss) into AOCI, net of tax | 0 | 0 | (1) | (8) |
Reclassified from AOCI into Income (Loss) | (2) | 0 | (5) | (1) |
Recorded in (Income) Loss | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 09, 2019 | Oct. 31, 2019 | May 31, 2014 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2003 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | |||||||||
Amount of bonds issued by the Charter Township of Van Buren, Michigan | $ 28 | $ 28 | |||||||
Estimated shortfall in tax revenues of the Township | $ 1 | ||||||||
Net sales | $ 12 | $ 631 | $ 747 | $ 1,987 | $ 1,761 | ||||
Maximum exposure to loss in YFVIC | 70 | 70 | $ 109 | ||||||
Climate Transaction | |||||||||
Loss Contingencies [Line Items] | |||||||||
Guarantee for divested entities lease payments | 5 | 5 | |||||||
Interiors Divestiture | |||||||||
Loss Contingencies [Line Items] | |||||||||
Guarantee for divested entities lease payments | 2 | 2 | |||||||
BRAZIL | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency accrual | 9 | 9 | |||||||
Maximum exposure to loss in YFVIC | $ 54 | $ 54 |
Commitments and Contingencies -
Commitments and Contingencies - Reconciliation of Changes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Product warranty accrual, beginning balance | $ 64 | $ 49 |
Provisions | 12 | 16 |
Changes in estimates | 1 | (2) |
Currency/other | (3) | 1 |
Settlements | (16) | (14) |
Product warranty accrual, ending balance | $ 58 | $ 50 |
Segment Information and Reven_3
Segment Information and Revenue Recognition - Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Net income (loss) attributable to Visteon Corporation | $ 5 | $ 6 | $ 10 | $ (74) |
Depreciation and amortization | 27 | 25 | 82 | 75 |
Non-cash, stock-based compensation expense | 4 | 4 | 13 | 13 |
Provision for income taxes | 4 | 12 | 20 | 19 |
Interest expense, net | 2 | 5 | 6 | 10 |
Net income (loss) attributable to non-controlling interests | 2 | 4 | 5 | 6 |
Restructuring, net | (2) | 32 | (2) | 69 |
Equity in net income of non-consolidated affiliates | (2) | (2) | (2) | (4) |
Other | 2 | 1 | 4 | 3 |
Adjusted EBITDA | $ 42 | $ 87 | $ 136 | $ 117 |
Segment Information and Reven_4
Segment Information and Revenue Recognition - Sales and Assets by Geographic Region (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2014 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 12 | $ 631 | $ 747 | $ 1,987 | $ 1,761 |
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 212 | 281 | 707 | 667 | |
Americas | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 158 | 192 | 519 | 446 | |
China Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 145 | 140 | 384 | 323 | |
China Export | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 51 | 58 | 148 | 145 | |
Other Asia-Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 94 | 107 | 309 | 261 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (29) | $ (31) | $ (80) | $ (81) |
Segment Information and Reven_5
Segment Information and Revenue Recognition - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2014 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 12 | $ 631 | $ 747 | $ 1,987 | $ 1,761 |
Instrument clusters | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 345 | 388 | 1,062 | 901 | |
Audio and infotainment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 122 | 134 | 369 | 333 | |
Information displays | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 71 | 135 | 282 | 298 | |
Body and security | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 25 | 28 | 88 | 66 | |
Telematics | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 15 | 14 | 49 | 43 | |
Climate controls | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 13 | 14 | 42 | 31 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 40 | $ 34 | $ 95 | $ 89 |
Segment Information and Reven_6
Segment Information and Revenue Recognition - Narrative (Details) - segment | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 1 | |
Net changes in transaction price | 1.00% | 1.00% |