Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 18, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $.01 Per Share | |
Trading Symbol | VC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,596,555 | |
Amendment Flag | false | |
Entity Central Index Key | 0001111335 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 933 | $ 967 |
Cost of sales | (814) | (857) |
Gross margin | 119 | 110 |
Selling, general and administrative expenses | (52) | (52) |
Restructuring, net | (2) | (1) |
Interest expense | (4) | (5) |
Interest income | 4 | 2 |
Equity in net income (loss) of non-consolidated affiliates | (4) | (5) |
Other income, net | 2 | 3 |
Income (loss) before income taxes | 63 | 52 |
Provision for income taxes | (19) | (14) |
Net income (loss) | 44 | 38 |
Less: Net (income) loss attributable to non-controlling interests | (2) | (4) |
Net income (loss) attributable to Visteon Corporation | 42 | 34 |
Comprehensive income: | ||
Comprehensive income (loss) | 29 | 53 |
Less: Comprehensive (income) loss attributable to non-controlling interests | (1) | (3) |
Comprehensive income (loss) attributable to Visteon Corporation | $ 28 | $ 50 |
Basic earnings (loss) per share: | ||
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 1.52 | $ 1.21 |
Diluted earnings (loss) per share | ||
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 1.50 | $ 1.18 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and equivalents | $ 504 | $ 515 |
Restricted cash | 3 | 3 |
Accounts receivable, net | 652 | 666 |
Inventories, net | 342 | 298 |
Other current assets | 129 | 134 |
Total current assets | 1,630 | 1,616 |
Property and equipment, net | 415 | 418 |
Intangible assets, net | 87 | 90 |
Right-of-use assets | 120 | 109 |
Investments in non-consolidated affiliates | 30 | 35 |
Deferred Tax Assets, Tax Deferred Expense | 378 | 384 |
Other non-current assets | 79 | 75 |
Total assets | 2,739 | 2,727 |
LIABILITIES AND EQUITY | ||
Short-term debt | 18 | 18 |
Accounts payable | 566 | 551 |
Accrued employee liabilities | 84 | 99 |
Current lease liability | 31 | 30 |
Other current liabilities | 239 | 233 |
Total current liabilities | 938 | 931 |
Long-term debt, net | 314 | 318 |
Employee benefits | 156 | 160 |
Non-current lease liability | 89 | 79 |
Deferred tax liabilities | 32 | 31 |
Other non-current liabilities | 76 | 85 |
Stockholders’ equity: | ||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of March 31, 2024 and December 31, 2023) | 0 | 0 |
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 27.6 and 27.7 million shares outstanding as of March 31, 2024 and December 31, 2023, respectively) | 1 | 1 |
Additional paid-in capital | 1,350 | 1,356 |
Retained earnings | 2,316 | 2,274 |
Accumulated other comprehensive loss | (268) | (254) |
Treasury stock | (2,350) | (2,339) |
Total Visteon Corporation stockholders’ equity | 1,049 | 1,038 |
Non-controlling interests | 85 | 85 |
Total equity | 1,134 | 1,123 |
Total liabilities and equity | $ 2,739 | $ 2,727 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | |
Common stock, shares authorized (in shares) | 250,000,000 | |
Common stock, shares, issued (in shares) | 55,000,000 | |
Common stock, shares, outstanding (in shares) | 27,600,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities | ||
Net income (loss) | $ 44 | $ 38 |
Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 22 | 29 |
Non-cash stock-based compensation | 10 | 8 |
Equity in net loss (income) of non-consolidated affiliates, net of dividends remitted | 4 | 5 |
Other non-cash items | 3 | (2) |
Changes in assets and liabilities: | ||
Accounts receivable | 3 | (13) |
Inventories | (51) | (5) |
Accounts payable | 37 | (59) |
Other assets and other liabilities | (3) | (20) |
Net cash provided from (used by) operating activities | 69 | (19) |
Investing Activities | ||
Capital expenditures, including intangibles | (37) | (21) |
Other, net | 0 | 1 |
Net cash used by investing activities | (37) | (20) |
Financing Activities | ||
Short-term debt, net | 0 | 3 |
Investment Company, Debt Instrument, Amount Repaid to Principal, Excess (Less) | (4) | 0 |
Payments of Ordinary Dividends, Noncontrolling Interest | 0 | (8) |
Repurchase of common stock | (20) | 0 |
Payments Related to Tax Withholding for Share-based Compensation | (7) | 0 |
Net cash used by financing activities | (31) | (5) |
Effect of exchange rate changes on cash | (12) | 8 |
Net decrease in cash, equivalents, and restricted cash | (11) | (36) |
Cash, equivalents, and restricted cash at beginning of the period | 518 | 523 |
Cash, equivalents, and restricted cash at end of the period | $ 507 | $ 487 |
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, 2022 | $ 774 | $ 1 | $ 1,352 | $ 1,788 | $ (213) | $ (2,253) | $ 675 | $ 99 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 38 | 34 | 34 | 4 | ||||
Other comprehensive income (loss) | 15 | 16 | 16 | (1) | ||||
Stock-based compensation, net | (5) | (18) | 13 | (5) | ||||
Repurchase of common stock | 0 | |||||||
Dividends to non-controlling interests | (15) | (15) | ||||||
Ending balance at Mar. 31, 2023 | 807 | 1 | 1,334 | 1,822 | (197) | (2,240) | 720 | 87 |
Beginning balance at Dec. 31, 2023 | 1,123 | 1 | 1,356 | 2,274 | (254) | (2,339) | 1,038 | 85 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 44 | 42 | 42 | 2 | ||||
Other comprehensive income (loss) | (15) | (14) | (14) | (1) | ||||
Stock-based compensation, net | 3 | (6) | 9 | 3 | ||||
Repurchase of common stock | (20) | (20) | (20) | |||||
Payments to Acquire Interest in Subsidiaries and Affiliates | (1) | |||||||
Ending balance at Mar. 31, 2024 | $ 1,134 | $ 1 | $ 1,350 | $ 2,316 | $ (268) | $ (2,350) | $ 1,049 | $ 85 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 and Subsidiaries (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 United States 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 March 31, 2024 will be reflected in management's estimates in future periods. Segment: The Company’s reportable segment is Electronics. The Electronics segment provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advanced driver assistance systems ("ADAS"), displays, Android-based infotainment systems, and battery management systems. As the Company has one reportable segment, net sales, total assets, depreciation, amortization and capital expenditures are equal to consolidated results. Accounts Receivable: Accounts receivable are stated at the invoiced amount, less an allowance for doubtful accounts for estimated amounts not expected to be collected, and do not bear interest. The Company receives bank notes from certain customers in China to settle trade accounts receivable. The collection on such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. The Company may hold such bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. The Company has entered into arrangements with financial institutions to sell certain bank notes, generally maturing within nine months. Bank notes are sold with recourse but qualify as a sale as all rights to the notes have passed to the financial institution. The Company redeemed $46 million of China bank notes during the three months ended March 31, 2024. Remaining amounts outstanding at third-party institutions related to sold bank notes will mature by August 30, 2024. 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 allowance for doubtful accounts was $8 million and $7 million as of March 31, 2024 and December 31, 2023, respectively. |
Non-Consolidated Affiliates
Non-Consolidated Affiliates | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, December 31, (In millions) 2024 2023 Yanfeng Visteon Investment Co., Ltd. ("YFVIC") (50%) $ 2 $ 8 Limited partnerships 15 15 Other 13 12 Total investments in non-consolidated affiliates $ 30 $ 35 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: March 31, December 31, (In millions) 2024 2023 Payables due to YFVIC $ 17 $ 24 Exposure to loss in YFVIC: Investment in YFVIC $ 2 $ 8 Receivables due from YFVIC 11 19 Maximum exposure to loss in YFVIC $ 13 $ 27 Equity Investments In 2018, the Company committed to make a $15 million investment in two entities principally focused on the automotive sector pursuant to limited partnership agreements. As a limited partner in each entity, the Company will periodically make capital contributions toward this total commitment amount. Through March 31, 2024, the Company had contributed approximately $12 million to these entities. These investments are classified as equity method investments. In 2022, the Company made an investment in a private limited company focused on technology development for the automotive industry of $1 million. There have been no further contributions as of March 31, 2024. |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Given the economically-sensitive and highly competitive nature of the automotive electronics industry, the Company continues to closely monitor current market factors and industry trends, taking action as necessary which may include restructuring actions. However, there can be no assurance that any such actions will be sufficient to fully offset the impact of adverse factors on the Company or its results of operations, financial position and cash flows. During the three months ended March 31, 2024 and 2023, the Company recorded $2 million and $1 million of restructuring expense primarily related to employee severance, respectively. Current restructuring actions include the following: • During the first quarter of 2024, the Company approved and recorded $2 million of net restructuring expense globally to improve efficiencies and rationalize the Company's footprint. As of March 31, 2024 , $2 million remains accrued related to these actions. • During prior periods, the Company approved various restructuring programs to improve efficiencies across the organization. As of March 31, 2024 , $3 million remains accrued related to these previously announced actions. • As of March 31, 2024, the Company retained restructuring reserves as part of the Company's divestiture of the majority of its global Interiors business (the "Interiors Divestiture") and legacy operations of $3 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. (In millions) December 31, 2023 $ 8 Expense 2 Utilization (2) March 31, 2024 $ 8 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following components: March 31, December 31, (In millions) 2024 2023 Raw materials $ 245 $ 229 Work-in-process 35 32 Finished products 62 37 $ 342 $ 298 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets, net are comprised of the following: March 31, 2024 December 31, 2023 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Definite-Lived: Developed technology 4 $ 40 $ (39) $ 1 $ 40 $ (39) $ 1 Customer related 3 85 (82) 3 86 (83) 3 Capitalized software development 3 52 (25) 27 52 (24) 28 Other 10 25 (13) 12 26 (12) 14 Subtotal 202 (159) 43 204 (158) 46 Indefinite-Lived: Goodwill 44 — 44 44 — 44 Total $ 246 $ (159) $ 87 $ 248 $ (158) $ 90 Capitalized software development consists of software development costs intended for integration into customer products. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2024 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other current assets are comprised of the following components: March 31, December 31, (In millions) 2024 2023 Recoverable taxes $ 57 $ 51 Contractually reimbursable engineering costs 33 33 Prepaid assets and deposits 22 24 Joint venture receivables 11 19 Contractual payments 3 3 Other 3 4 $ 129 $ 134 Other non-current assets are comprised of the following components: March 31, December 31, (In millions) 2024 2023 Contractual payments $ 23 $ 22 Contractually reimbursable engineering costs 19 21 Recoverable taxes 10 10 Other 27 22 $ 79 $ 75 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 $27 million during the remainder of 2024, $17 million in 2025, $7 million in 2026, $1 million in 2027, and less than $1 million in 2028 and beyond. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities are summarized as follows: March 31, December 31, (In millions) 2024 2023 Deferred income $ 64 $ 57 Product warranty and recall accruals 48 48 Income taxes payable 28 25 Non-income taxes payable 28 25 Joint venture payables 17 25 Royalty reserves 16 16 Restructuring reserves 5 5 Other 33 32 $ 239 $ 233 Other non-current liabilities are summarized as follows: March 31, December 31, (In millions) 2024 2023 Product warranty and recall accruals $ 22 $ 23 Income tax reserves 12 12 Deferred income 11 12 Derivative financial instruments 4 9 Restructuring reserves 3 3 Other 24 26 $ 76 $ 85 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and 2023 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2024 2023 2024 2023 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ — $ — Pension financing benefits (cost): Interest cost $ (7) $ (8) $ (3) $ (2) Expected return on plan assets 10 10 2 2 Amortization of gains and other — 1 — — Total pension financing benefits: 3 3 (1) — Net pension benefit (cost) $ 3 $ 3 $ (1) $ — Pension financing benefits are classified as Other income, net on the Company's condensed consolidated statements of comprehensive income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Stockholders' Equity and Non-co
Stockholders' Equity and Non-controlling Interests | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, December 31, (In millions) 2024 2023 Shanghai Visteon Automotive Electronics, Co., Ltd. $ 52 $ 51 Yanfeng Visteon Automotive Electronics Co., Ltd. 19 18 Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. 13 14 Other 1 2 $ 85 $ 85 During the three months ended March 31, 2024, the Company paid approximately $1 million to buy-out the shares of a minority joint venture partner in Tunisia. Accumulated Other Comprehensive Income (Loss) Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended March 31, (In millions) 2024 2023 Changes in AOCI: Beginning balance $ (254) $ (213) Other comprehensive income (loss) before reclassification, net of tax (17) 15 Amounts reclassified from AOCI 3 1 Ending balance $ (268) $ (197) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (192) $ (210) Other comprehensive income (loss) before reclassification, net of tax (22) 21 Ending balance (214) (189) Net investment hedge Beginning balance 5 12 Other comprehensive income (loss) before reclassification, net of tax 7 (1) Ending balance 12 11 Benefit plans Beginning balance (76) (25) Amounts reclassified from AOCI — (1) Ending balance (76) (26) Unrealized hedging gain (loss) Beginning balance 9 10 Other comprehensive income (loss) before reclassification, net of tax (2) (5) Amounts reclassified from AOCI 3 2 Ending balance 10 7 Total AOCI $ (268) $ (197) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, (In millions, except per share amounts) 2024 2023 Numerator: Net income (loss) attributable to Visteon $ 42 $ 34 Denominator: Average common stock outstanding - basic 27.6 28.2 Dilutive effect of performance based share units and other 0.4 0.5 Diluted shares 28.0 28.7 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ 1.52 $ 1.21 Diluted earnings (loss) per share attributable to Visteon: $ 1.50 $ 1.18 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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 foreign currency exchange rates and market interest rates. The Company manages these risks, in part, through the use of derivative financial instruments. The use of derivative financial instruments creates exposure to credit loss in the event of nonperformance by the counterparty to the derivative financial instruments. The Company limits this exposure by entering into agreements including master netting arrangements directly with a variety of major highly rated financial institutions that are expected to fully satisfy their obligations under the contracts. Additionally, the Company’s ability to utilize derivatives to manage risks is dependent on credit and market conditions. 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. There is no cash collateral on any of these derivatives. Derivative financial instruments are measured at fair value on a recurring basis under an income approach using industry-standard models that consider various assumptions, including time value, volatility factors, current market and contractual prices for the underlying, and non-performance risk. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument or may derived from observable data. Accordingly, the Company's currency instruments are classified as Level 2, "Other Observable Inputs" in the fair value hierarchy. 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 swaps are designated as net investment hedges and the Company has elected to assess hedge effectiveness under the spot method. Accordingly, changes in the fair value of the swaps are recorded as a cumulative translation adjustment in AOCI in the Consolidated Balance Sheet. As of March 31, 2024 and December 31, 2023, the Company had cross-currency swaps with aggregate notional amounts of $200 million intended to mitigate the variability of U.S. dollar value investment in certain of its non-U.S. entities. These swaps are designated as net investment hedges. There was no ineffectiveness associated with such derivatives as of March 31, 2024 and December 31, 2023. The fair value of these derivatives is a non-current liability of $9 million and $15 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, a gain of approximately $1 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 swaps are designated as cash flow hedges, accordingly, the effective portion of the changes in fair value is recognized in accumulated other comprehensive income. Subsequently, the accumulated gains and losses recorded in equity are reclassified to income in the period during which the hedged exposure impacts earnings. As of March 31, 2024 and December 31, 2023, the Company had interest rate swaps with aggregate notional amounts of $250 million. The fair value of these derivatives is an non-current asset of $11 million and $7 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, a loss of approximately $2 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 months ended March 31, 2024 and 2023 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) (In millions) 2024 2023 2024 2023 Three months ended March 31, Interest rate risk - Interest expense, net: Interest rate swap (2) (5) (3) (2) Net investment hedges 7 (1) — — $ 5 $ (6) $ (3) $ (2) Items Not Carried at Fair Value The Company's fair value of debt was $329 million and $328 million as of March 31, 2024 and December 31, 2023, 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 counterparty 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 GM, Ford, and Nissan/Renault and their affiliates. GM represents 16% and 15% of the Company's balance as of March 31, 2024 and December 31, 2023, respectively. Ford represents 13% and 16% of the Company's balance as of March 31, 2024 and December 31, 2023, respectively. Nissan/Renault represents 10% and 9% of the Company's balance as of March 31, 2024 and December 31, 2023, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 and also provided that the Company would negotiate in good faith with the Township if the property tax payments were inadequate to permit the Township to meet its payment obligations with respect to the bonds. On December 9, 2019, the Township commenced litigation against the Company in Michigan’s Wayne County Circuit Court. On June 27, 2023, Visteon and the Township entered into a Settlement and Mutual Release Agreement pursuant to which Visteon, without admitting wrongdoing, will pay the Township $12 million. Payment will be made in two installments. One payment was made on July 3, 2023. The second payment is scheduled to be paid on July 1, 2024 and is classified as a current liability. The litigation commenced in Michigan’s Wayne County Circuit Court and has been dismissed with prejudice. 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 $8 million for claims aggregating $53 million in Brazil as of March 31, 2024. The amounts accrued represent claims that are deemed probable of loss and are reasonably estimable based on the Company's assessment of the claims and prior experience with similar matters. While the Company believes its accruals for litigation and claims are adequate, the final amounts required to resolve such matters could differ materially from recorded estimates and the Company's results of operations and cash flows could be materially affected. 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: Three Months Ended March 31, (In millions) 2024 2023 Beginning balance $ 71 $ 51 Provisions 6 5 Changes in estimates — (1) Currency/other (2) 1 Settlements (5) (2) Ending balance $ 70 $ 54 Guarantees and Commitments As part of 2015 divestitures involving the Company's former climate and interiors businesses, the Company continues to provide lease guarantees to divested Climate and Interiors entities. As of March 31, 2024, the Company has approximately $1 million and $2 million of outstanding guarantees for each of 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 in the fourth quarter of 2024 for the Climate and Interiors entities, respectively. 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 March 31, 2024 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 | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information and Revenue Recognition | Revenue Recognition and Geographical Information Financial Information by Geographic Region Disaggregated net sales by geographical market and product lines is as follows: Three Months Ended March 31, (In millions) 2024 2023 Geographical Markets Europe $ 313 $ 346 Americas 296 276 China Domestic 114 128 China Export 70 83 Other Asia-Pacific 173 177 Eliminations (33) (43) $ 933 $ 967 Disaggregated revenue by product lines is as follows: Three Months Ended March 31, (In millions) 2024 2023 Product Lines Instrument clusters $ 440 $ 474 Cockpit domain controller 141 113 Infotainment 118 135 Body and electrification electronics 109 71 Information displays 81 97 Other 44 77 $ 933 $ 967 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation - Interim Financial Statements | Basis of Presentation - Interim Financial Statements The condensed consolidated financial statements of Visteon Corporation and Subsidiaries (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 United States 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 March 31, 2024 will be reflected in management's estimates in future periods. Segment: The Company’s reportable segment is Electronics. The Electronics segment provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advanced driver assistance systems ("ADAS"), displays, Android-based infotainment systems, and battery management systems. As the Company has one reportable segment, net sales, total assets, depreciation, amortization and capital expenditures are equal to consolidated results. Accounts Receivable: Accounts receivable are stated at the invoiced amount, less an allowance for doubtful accounts for estimated amounts not expected to be collected, and do not bear interest. The Company receives bank notes from certain customers in China to settle trade accounts receivable. The collection on such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. The Company may hold such bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. The Company has entered into arrangements with financial institutions to sell certain bank notes, generally maturing within nine months. Bank notes are sold with recourse but qualify as a sale as all rights to the notes have passed to the financial institution. The Company redeemed $46 million of China bank notes during the three months ended March 31, 2024. Remaining amounts outstanding at third-party institutions related to sold bank notes will mature by August 30, 2024. |
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 |
Non-Consolidated Affiliates (Ta
Non-Consolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Summary of Investment in Non-consolidated Affiliates | The Company's investments in non-consolidated equity method affiliates include the following: March 31, December 31, (In millions) 2024 2023 Yanfeng Visteon Investment Co., Ltd. ("YFVIC") (50%) $ 2 $ 8 Limited partnerships 15 15 Other 13 12 Total investments in non-consolidated affiliates $ 30 $ 35 The Company's investments in YFVIC consists of the following: March 31, December 31, (In millions) 2024 2023 Payables due to YFVIC $ 17 $ 24 Exposure to loss in YFVIC: Investment in YFVIC $ 2 $ 8 Receivables due from YFVIC 11 19 Maximum exposure to loss in YFVIC $ 13 $ 27 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The Company’s restructuring reserves and related activity are summarized below. (In millions) December 31, 2023 $ 8 Expense 2 Utilization (2) March 31, 2024 $ 8 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories, net consist of the following components: March 31, December 31, (In millions) 2024 2023 Raw materials $ 245 $ 229 Work-in-process 35 32 Finished products 62 37 $ 342 $ 298 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Intangible assets, net are comprised of the following: March 31, 2024 December 31, 2023 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Definite-Lived: Developed technology 4 $ 40 $ (39) $ 1 $ 40 $ (39) $ 1 Customer related 3 85 (82) 3 86 (83) 3 Capitalized software development 3 52 (25) 27 52 (24) 28 Other 10 25 (13) 12 26 (12) 14 Subtotal 202 (159) 43 204 (158) 46 Indefinite-Lived: Goodwill 44 — 44 44 — 44 Total $ 246 $ (159) $ 87 $ 248 $ (158) $ 90 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets are comprised of the following components: March 31, December 31, (In millions) 2024 2023 Recoverable taxes $ 57 $ 51 Contractually reimbursable engineering costs 33 33 Prepaid assets and deposits 22 24 Joint venture receivables 11 19 Contractual payments 3 3 Other 3 4 $ 129 $ 134 |
Schedule of Other Noncurrent Assets | Other non-current assets are comprised of the following components: March 31, December 31, (In millions) 2024 2023 Contractual payments $ 23 $ 22 Contractually reimbursable engineering costs 19 21 Recoverable taxes 10 10 Other 27 22 $ 79 $ 75 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are summarized as follows: March 31, December 31, (In millions) 2024 2023 Deferred income $ 64 $ 57 Product warranty and recall accruals 48 48 Income taxes payable 28 25 Non-income taxes payable 28 25 Joint venture payables 17 25 Royalty reserves 16 16 Restructuring reserves 5 5 Other 33 32 $ 239 $ 233 |
Schedule of Other Noncurrent Liabilities | Other non-current liabilities are summarized as follows: March 31, December 31, (In millions) 2024 2023 Product warranty and recall accruals $ 22 $ 23 Income tax reserves 12 12 Deferred income 11 12 Derivative financial instruments 4 9 Restructuring reserves 3 3 Other 24 26 $ 76 $ 85 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: March 31, December 31, (In millions) 2024 2023 Short-Term Debt: Current portion of long-term debt $ 18 $ 18 Long-Term Debt: Term debt facility, net $ 314 $ 318 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and 2023 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2024 2023 2024 2023 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ — $ — Pension financing benefits (cost): Interest cost $ (7) $ (8) $ (3) $ (2) Expected return on plan assets 10 10 2 2 Amortization of gains and other — 1 — — Total pension financing benefits: 3 3 (1) — Net pension benefit (cost) $ 3 $ 3 $ (1) $ — |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Non-controlling Interests | The Company's non-controlling interests are as follows: March 31, December 31, (In millions) 2024 2023 Shanghai Visteon Automotive Electronics, Co., Ltd. $ 52 $ 51 Yanfeng Visteon Automotive Electronics Co., Ltd. 19 18 Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. 13 14 Other 1 2 $ 85 $ 85 During the three months ended March 31, 2024, the Company paid approximately $1 million to buy-out the shares of a minority joint venture partner in Tunisia. |
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 March 31, (In millions) 2024 2023 Changes in AOCI: Beginning balance $ (254) $ (213) Other comprehensive income (loss) before reclassification, net of tax (17) 15 Amounts reclassified from AOCI 3 1 Ending balance $ (268) $ (197) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (192) $ (210) Other comprehensive income (loss) before reclassification, net of tax (22) 21 Ending balance (214) (189) Net investment hedge Beginning balance 5 12 Other comprehensive income (loss) before reclassification, net of tax 7 (1) Ending balance 12 11 Benefit plans Beginning balance (76) (25) Amounts reclassified from AOCI — (1) Ending balance (76) (26) Unrealized hedging gain (loss) Beginning balance 9 10 Other comprehensive income (loss) before reclassification, net of tax (2) (5) Amounts reclassified from AOCI 3 2 Ending balance 10 7 Total AOCI $ (268) $ (197) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, (In millions, except per share amounts) 2024 2023 Numerator: Net income (loss) attributable to Visteon $ 42 $ 34 Denominator: Average common stock outstanding - basic 27.6 28.2 Dilutive effect of performance based share units and other 0.4 0.5 Diluted shares 28.0 28.7 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ 1.52 $ 1.21 Diluted earnings (loss) per share attributable to Visteon: $ 1.50 $ 1.18 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) (In millions) 2024 2023 2024 2023 Three months ended March 31, Interest rate risk - Interest expense, net: Interest rate swap (2) (5) (3) (2) Net investment hedges 7 (1) — — $ 5 $ (6) $ (3) $ (2) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Three Months Ended March 31, (In millions) 2024 2023 Beginning balance $ 71 $ 51 Provisions 6 5 Changes in estimates — (1) Currency/other (2) 1 Settlements (5) (2) Ending balance $ 70 $ 54 |
Segment Information and Reven_2
Segment Information and Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
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 March 31, (In millions) 2024 2023 Geographical Markets Europe $ 313 $ 346 Americas 296 276 China Domestic 114 128 China Export 70 83 Other Asia-Pacific 173 177 Eliminations (33) (43) $ 933 $ 967 |
Schedule of Revenue from External Customers by Products and Services | Three Months Ended March 31, (In millions) 2024 2023 Product Lines Instrument clusters $ 440 $ 474 Cockpit domain controller 141 113 Infotainment 118 135 Body and electrification electronics 109 71 Information displays 81 97 Other 44 77 $ 933 $ 967 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for doubtful accounts | $ 8 | $ 7 |
Amount of China bank notes sold | $ 46 |
Non-Consolidated Affiliates - N
Non-Consolidated Affiliates - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2020 |
YFVIC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 50% | |
Fair Value Measured at Net Asset Value Per Share | ||
Related Party Transaction [Line Items] | ||
Investments | $ 12 | $ 15 |
Non-Consolidated Affiliates - I
Non-Consolidated Affiliates - Investments in Non-Consolidated Equity Method Affiliates (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Investment in YFVIC | $ 30 | $ 35 |
Yanfeng Visteon Investment Co., Ltd. ("YFVIC") | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | 2 | 8 |
Other | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | 13 | 12 |
Limited Partnerships | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | $ 15 | $ 15 |
Non-Consolidated Affiliates - S
Non-Consolidated Affiliates - Summary of Investments in YFVIC (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Exposure to loss in YFVIC: | ||
Investment in YFVIC | $ 30 | $ 35 |
Maximum exposure to loss in YFVIC | 13 | 27 |
Yanfeng Visteon Investment Co., Ltd. ("YFVIC") | ||
Exposure to loss in YFVIC: | ||
Investment in YFVIC | 2 | 8 |
Increase (Decrease) in Due to Related Parties | 17 | 24 |
Other | ||
Exposure to loss in YFVIC: | ||
Investment in YFVIC | 13 | 12 |
Increase (Decrease) in Due from Related Parties | $ 11 | $ 19 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, current | $ 5 | $ 5 |
Restructuring Reserve | 8 | $ 8 |
2016 Other Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 3 | |
Russia Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 2 | |
Brazil Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 3 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Restructuring Reserves and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 8 | |
Expense | 2 | $ 1 |
Utilization | (2) | |
Restructuring reserve, ending balance | $ 8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 245 | $ 229 |
Work-in-process | 35 | 32 |
Finished products | 62 | 37 |
Inventories, net | $ 342 | $ 298 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 202 | $ 204 |
Accumulated Amortization | (159) | (158) |
Net Intangibles | 43 | 46 |
Goodwill and indefinite-lived intangible assets [Abstract] | ||
Goodwill, gross | 44 | 44 |
Goodwill net | 44 | 44 |
Total goodwill and intangible assets, gross | 246 | 248 |
Total goodwill and intangible assets, net | $ 87 | 90 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 4 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 40 | 40 |
Accumulated Amortization | (39) | (39) |
Net Intangibles | $ 1 | 1 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 3 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 85 | 86 |
Accumulated Amortization | (82) | (83) |
Net Intangibles | $ 3 | 3 |
Capitalized software development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 3 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 52 | 52 |
Accumulated Amortization | (25) | (24) |
Net Intangibles | $ 27 | 28 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 10 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 25 | 26 |
Accumulated Amortization | (13) | (12) |
Net Intangibles | $ 12 | $ 14 |
Other Assets - Current Assets (
Other Assets - Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Assets [Abstract] | ||
Recoverable taxes | $ 57 | $ 51 |
Contractually reimbursable engineering costs | 33 | 33 |
Prepaid assets and deposits | 22 | 24 |
Joint venture receivables | 11 | 19 |
Contractual payments | 3 | 3 |
Other | 3 | 4 |
Other current assets | $ 129 | $ 134 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Other Assets [Abstract] | |
Amount of China bank notes sold | $ 46 |
Reimbursement for engineering costs in current year | 27 |
Reimbursement for engineering costs in following year | 17 |
Reimbursement for engineering costs expected in year two | 7 |
Reimbursement for engineering costs expected in year three | 1 |
Reimbursement for engineering costs expected in year four and beyond | $ 1 |
Other Assets - Noncurrent Asset
Other Assets - Noncurrent Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Assets [Abstract] | ||
Contractual payments | $ 23 | $ 22 |
Contractually reimbursable engineering costs | 19 | 21 |
Recoverable taxes | 10 | 10 |
Other | 27 | 22 |
Other noncurrent assets | $ 79 | $ 75 |
Other Liabilities - Other Curre
Other Liabilities - Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Product warranty and recall accruals | $ 48 | $ 48 |
Deferred income | 64 | 57 |
Non-income taxes payable | 28 | 25 |
Restructuring reserves | 5 | 5 |
Royalty reserves | 16 | 16 |
Joint venture payables | 17 | 25 |
Income taxes payable | 28 | 25 |
Other | 33 | 32 |
Total other current liabilities | $ 239 | $ 233 |
Other Liabilities - Other Noncu
Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Product warranty and recall accruals | $ 22 | $ 23 |
Deferred income | 11 | 12 |
Income tax reserves | 12 | 12 |
Derivative financial instruments | 4 | 9 |
Restructuring reserves | 3 | 3 |
Other | 24 | 26 |
Total other noncurrent liabilities | $ 76 | $ 85 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Short-term borrowings | ||
Long-term debt | ||
Long-Term Debt and Lease Obligation, Including Current Maturities | $ 18 | $ 18 |
Term Loan | ||
Long-term debt | ||
Term debt facility, net | $ 314 | $ 318 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Amended LOC agreement facility capacity | $ 7 | ||
Required collateral equal to the aggregate stated amount of the LOCs (percent) | 103% | ||
LOC collateral percentage for draws in non-U.S. currencies (percent) | 110% | ||
Amount secured by cash collateral | $ 3 | $ 2 | |
Debt instrument, collateral amount | 2 | ||
Restricted cash | 3 | 3 | |
Other Deferred Costs, Gross | 2 | ||
Other Deferred Costs, Net | $ 1 | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 500% | ||
Percentage of Principal Payment | 1.25% | ||
Restricted cash | $ 3 | $ 3 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Financial maintenance covenant | 1 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Financial maintenance covenant | 3.50 | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Face amount | $ 350 | ||
Term Facility and Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent) | 1% | ||
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Term Facility and Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent) | 1.75% | ||
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Face amount | $ 400 | ||
Maximum borrowing capacity, swing line advances | $ 20 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 148 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity, revolving credit facility | $ 75 |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
U.S. Plans | ||
Pension service cost: | ||
Service cost | $ 0 | $ 0 |
Pension financing benefits (cost): | ||
Interest cost | (7) | (8) |
Expected return on plan assets | 10 | 10 |
Amortization of gains and other | 1 | |
Total pension financing benefits: | 3 | 3 |
Net pension benefit (cost) | 3 | 3 |
Foreign Plan | ||
Pension service cost: | ||
Service cost | 0 | 0 |
Pension financing benefits (cost): | ||
Interest cost | (3) | (2) |
Expected return on plan assets | 2 | $ 2 |
Total pension financing benefits: | (1) | |
Net pension benefit (cost) | $ (1) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other income, net | $ 2 | $ 3 |
Expected future employer contributions in remaining year | 9 | |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 7 | |
Foreign Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cash contributions by employer | $ 1 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Examination [Line Items] | ||
Provision for income taxes | $ 19 | $ 14 |
Pretax losses from continuing operations | (63) | (52) |
Valuation allowance, increase (decrease) | 313 | |
Jurisdictions where valuation allowances are maintained | ||
Income Tax Examination [Line Items] | ||
Pretax losses from continuing operations | $ (10) | $ (11) |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-controlling Interests - Schedule of Non-controlling Interests (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 85,000,000 | $ 85,000,000 |
Stock Repurchase Program, Authorized Amount | $ 300,000,000 | |
Stock repurchased during period (in shares) | 170,550 | |
Treasury Stock, Value, Acquired, Cost Method | $ 117.27 | |
Share Repurchase Program, Excise Tax | 1,000,000 | |
Shanghai Visteon Automotive Electronics, Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 52,000,000 | 51,000,000 |
Yanfeng Visteon Automotive Electronics Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 19,000,000 | 18,000,000 |
Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 13,000,000 | 14,000,000 |
Other | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 1,000,000 | $ 2,000,000 |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-controlling Interests - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | $ 1,038 | |
Other comprehensive income (loss) before reclassification, net of tax | (17) | $ 15 |
Amounts reclassified from AOCI | 3 | 1 |
Accumulated other comprehensive income (loss), ending balance | 1,049 | |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | (254) | (213) |
Accumulated other comprehensive income (loss), ending balance | (268) | (197) |
Accumulated Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | (192) | (210) |
Other comprehensive income (loss) before reclassification, net of tax | (22) | 21 |
Accumulated other comprehensive income (loss), ending balance | (214) | (189) |
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 | 12 |
Other comprehensive income (loss) before reclassification, net of tax | 7 | (1) |
Accumulated other comprehensive income (loss), ending balance | 12 | 11 |
Accumulated Defined Benefit Plans Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | (76) | (25) |
Amounts reclassified from AOCI | 0 | (1) |
Accumulated other comprehensive income (loss), ending balance | (76) | (26) |
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 | 9 | 10 |
Other comprehensive income (loss) before reclassification, net of tax | (2) | (5) |
Amounts reclassified from AOCI | 3 | 2 |
Accumulated other comprehensive income (loss), ending balance | $ 10 | $ 7 |
Stockholders' Equity and Non-_5
Stockholders' Equity and Non-controlling Interests - Stock Repurchase Program (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Equity, Class of Treasury Stock [Line Items] | |
Number of Shares Repurchased | shares | 953,840 |
Cost of Repurchased Shares Total Plan | $ | $ 132.01 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income (loss) attributable to Visteon | $ 42 | $ 34 |
Denominator: | ||
Average common stock outstanding - basic (in shares) | 27.6 | 28.2 |
Dilutive effect of performance based share units and other (in shares) | 0.4 | 0.5 |
Diluted shares (in shares) | 28 | 28.7 |
Basic earnings (loss) per share | ||
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 1.52 | $ 1.21 |
Diluted earnings (loss) per share attributable to Visteon: | ||
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 1.50 | $ 1.18 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||
Debt instrument | $ 329 | $ 328 |
Receivables due from YFVIC | ||
Derivative [Line Items] | ||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 1 | |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 1 | |
Designated as Hedging Instrument | Liability | Currency Swap | ||
Derivative [Line Items] | ||
Derivative liability | 200 | |
Derivative Asset | 9 | $ 15 |
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 | (2) | |
Derivative liability | 250 | |
Derivative Asset | $ 11 | |
Credit Concentration Risk | Accounts Receivable | Ford And Affiliates | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 13% | 16% |
Credit Concentration Risk | Accounts Receivable | GM | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 16% | 15% |
Credit Concentration Risk | Accounts Receivable | Nissan | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 10% | 9% |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Financial Statement Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded Income (Loss) into AOCI, net of tax | $ 5 | $ (6) |
Reclassified from AOCI into Income (Loss) | (3) | (2) |
Designated as Hedging Instrument | Foreign Exchange Contract | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded Income (Loss) into AOCI, net of tax | 7 | (1) |
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded Income (Loss) into AOCI, net of tax | (2) | (5) |
Reclassified from AOCI into Income (Loss) | $ (3) | $ (2) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | |||
Net sales | $ 933 | $ 967 | |
Maximum exposure to loss in YFVIC | 13 | $ 27 | |
Climate Transaction | |||
Loss Contingencies [Line Items] | |||
Guarantee for divested entities lease payments | 1 | ||
Interiors Divestiture | |||
Loss Contingencies [Line Items] | |||
Guarantee for divested entities lease payments | 2 | ||
BRAZIL | Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Loss contingency accrual | 8 | ||
Maximum exposure to loss in YFVIC | $ 53 |
Commitments and Contingencies -
Commitments and Contingencies - Reconciliation of Changes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Product warranty accrual, beginning balance | $ 71 | $ 51 |
Provisions | 6 | 5 |
Changes in estimates | (1) | |
Currency/other | (2) | 1 |
Settlements | (5) | (2) |
Product warranty accrual, ending balance | $ 70 | $ 54 |
Segment Information and Reven_3
Segment Information and Revenue Recognition - Sales and Assets by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 933 | $ 967 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 313 | 346 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 296 | 276 |
China Domestic | ||
Segment Reporting Information [Line Items] | ||
Net sales | 114 | 128 |
China Export | ||
Segment Reporting Information [Line Items] | ||
Net sales | 70 | 83 |
Other Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 173 | 177 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ (33) | $ (43) |
Segment Information and Reven_4
Segment Information and Revenue Recognition - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 933 | $ 967 |
Instrument clusters | ||
Segment Reporting Information [Line Items] | ||
Net sales | 440 | 474 |
Cockpit domain controller | ||
Segment Reporting Information [Line Items] | ||
Net sales | 141 | 113 |
Infotainment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 118 | 135 |
Information displays | ||
Segment Reporting Information [Line Items] | ||
Net sales | 81 | 97 |
Body and electrification electronics | ||
Segment Reporting Information [Line Items] | ||
Net sales | 109 | 71 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 44 | $ 77 |