Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2013 | Oct. 23, 2013 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | 27-Sep-13 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Central Index Key | 1267097 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Registrant Name | TRW Automotive Holdings Corp. | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding | 115,353,518 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Consolidated Statements of Earnings (Unaudited) | ||||
Sales | $4,212 | $3,965 | $12,939 | $12,412 |
Cost of sales | 3,762 | 3,551 | 11,531 | 11,048 |
Gross profit | 450 | 414 | 1,408 | 1,364 |
Administrative and selling expenses | 148 | 148 | 429 | 437 |
Amortization of intangible assets | 3 | 3 | 10 | 9 |
Restructuring charges and asset impairments | 5 | 3 | 43 | 7 |
Other (income) expense - net | 5 | -2 | -1 | -19 |
Operating income | 289 | 262 | 927 | 930 |
Interest expense - net | 33 | 26 | 97 | 82 |
Loss on retirement of debt - net | 0 | 1 | 5 | 6 |
Equity in earnings of affiliates, net of tax | -12 | -9 | -35 | -29 |
Earnings before income taxes | 268 | 244 | 860 | 871 |
Income tax expense | 62 | 68 | 221 | 253 |
Net earnings | 206 | 176 | 639 | 618 |
Less: Net earnings attributable to noncontrolling interest, net of tax | 9 | 13 | 32 | 29 |
Net earnings attributable to TRW | $197 | $163 | $607 | $589 |
Basic earnings per share: | ||||
Earnings per share | $1.68 | $1.33 | $5.12 | $4.80 |
Weighted average shares outstanding | 117 | 122.1 | 118.5 | 122.8 |
Diluted earnings per share: | ||||
Earnings per share | $1.60 | $1.28 | $4.88 | $4.58 |
Weighted average shares outstanding | 124.2 | 129.3 | 125.6 | 130 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Earnings (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Consolidated Statements of Comprehensive Earnings (Unaudited) | ||||
Net earnings | $206 | $176 | $639 | $618 |
Other comprehensive earnings (losses): | ||||
Foreign currency translation | 70 | 95 | -47 | 58 |
Retirement obligations, net of tax | -5 | -2 | -23 | 1 |
Deferred cash flow hedges, net of tax | 16 | 35 | -10 | 62 |
Total other comprehensive earnings (losses) | 81 | 128 | -80 | 121 |
Comprehensive earnings | 287 | 304 | 559 | 739 |
Less: Comprehensive earnings attributable to noncontrolling interest | 12 | 16 | 35 | 29 |
Comprehensive earnings attributable to TRW | $275 | $288 | $524 | $710 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,013 | $1,223 |
Accounts receivable - net | 2,997 | 2,200 |
Inventories | 1,065 | 975 |
Prepaid expenses and other current assets | 348 | 330 |
Total current assets | 5,423 | 4,728 |
Property, plant and equipment - net of accumulated depreciation of $4,305 and $4,027, respectively | 2,496 | 2,385 |
Goodwill | 1,758 | 1,756 |
Intangible assets - net | 284 | 293 |
Pension assets | 963 | 823 |
Other assets | 902 | 872 |
Total assets | 11,826 | 10,857 |
Current liabilities: | ||
Short-term debt | 111 | 67 |
Current portion of long-term debt | 470 | 26 |
Trade accounts payable | 2,588 | 2,423 |
Accrued compensation | 292 | 254 |
Other current liabilities | 1,222 | 1,111 |
Total current liabilities | 4,683 | 3,881 |
Long-term debt | 1,310 | 1,369 |
Postretirement benefits other than pensions | 432 | 396 |
Pension benefits | 874 | 898 |
Other long-term liabilities | 628 | 544 |
Total liabilities | 7,927 | 7,088 |
Stockholders' equity: | ||
Capital stock | 1 | 1 |
Paid-in-capital | 1,656 | 1,635 |
Retained earnings | 2,580 | 2,408 |
Accumulated other comprehensive earnings (losses) | -549 | -466 |
Total TRW stockholders' equity | 3,688 | 3,578 |
Noncontrolling interest | 211 | 191 |
Total equity | 3,899 | 3,769 |
Total liabilities and equity | $11,826 | $10,857 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Condensed Consolidated Balance Sheets (Unaudited) | ||
Accumulated depreciation on Property, plant and equipment | $4,305 | $4,027 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Operating Activities | ||
Net earnings | $639 | $618 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 318 | 307 |
Net pension and other postretirement benefits income and contributions | -175 | -195 |
Loss on retirement of debt - net | 5 | 6 |
Net gain on sales of assets and divestitures | -1 | -6 |
Deferred income taxes | 110 | 112 |
Other - net | 28 | 3 |
Changes in assets and liabilities: | ||
Accounts receivable - net | -792 | -309 |
Inventories | -91 | -149 |
Trade accounts payable | 157 | 1 |
Prepaid expenses and other assets | -31 | -104 |
Other liabilities | 73 | -39 |
Net cash provided by (used in) operating activities | 240 | 245 |
Investing Activities | ||
Capital expenditures, including other intangible assets | -411 | -325 |
Net proceeds from asset sales and divestitures | 1 | 12 |
Other - net | 0 | 0 |
Net cash provided by (used in) investing activities | -410 | -313 |
Financing Activities | ||
Change in short-term debt | 42 | -2 |
Proceeds from issuance of long-term debt, net of fees | 484 | 2 |
Fees paid to refinance credit facility | 0 | -9 |
Redemption of long-term debt | -121 | -73 |
Proceeds from exercise of stock options | 29 | 9 |
Payments for repurchase of capital stock | -460 | -102 |
Dividends paid to noncontrolling interest | -15 | -34 |
Net cash provided by (used in) financing activities | -41 | -209 |
Effect of exchange rate changes on cash | 1 | 9 |
Increase (decrease) in cash and cash equivalents | -210 | -268 |
Cash and cash equivalents at beginning of period | 1,223 | 1,241 |
Cash and cash equivalents at end of period | $1,013 | $973 |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 27, 2013 | |
Description of Business [Abstract] | |
Description of Business | 1. Description of Business |
TRW Automotive Holdings Corp. (also referred to herein as the “Company”) is among the world's largest and most diversified suppliers of automotive systems, modules and components to global automotive original equipment manufacturers (“OEMs”) and related aftermarkets. The Company conducts substantially all of its operations through subsidiaries. These operations primarily encompass the design, manufacture and sale of active and passive safety related products. Active safety related products principally refer to vehicle dynamic controls (primarily braking and steering), and passive safety related products principally refer to occupant restraints (primarily airbags and seat belts) and safety electronics (electronic control units and crash and occupant weight sensors). The Company is primarily a “Tier 1” supplier (a supplier that sells to OEMs). In 2012, approximately 86% of the Company's end-customer sales were to major OEMs. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Basis of Presentation [Abstract] | ||||||||||||||||||||||||||
Basis of Presentation | 2. Basis of Presentation | |||||||||||||||||||||||||
These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 15, 2013, and the Company's Current Report on Form 8-K filed with the SEC on August 1, 2013. | ||||||||||||||||||||||||||
In the first quarter of 2013, the Company began to manage and report certain components that were previously within its Electronics segment as part of its Chassis Systems segment. As a result, these components were reclassified and are now included within the Company's Chassis Systems segment. As such, the Company has made appropriate adjustments to its segment-related disclosures for 2013, as well as prior periods. | ||||||||||||||||||||||||||
These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. These financial statements include all adjustments (consisting primarily of normal, recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company. Operating results for the three and nine months ended September 27, 2013 are not necessarily indicative of results that may be expected for the year ending December 31, 2013. | ||||||||||||||||||||||||||
The Company follows a fiscal calendar that ends on December 31. However, each fiscal quarter has three periods consisting of one five week period and two four week periods. Each quarterly period ends on a Friday, with the possible exception of the final quarter of the year, which always ends on December 31. | ||||||||||||||||||||||||||
Earnings Per Share. Basic earnings per share are calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share reflect the weighted average impact of all potentially dilutive securities from the date of issuance, including stock options, restricted stock units (“RSUs”) and stock-settled stock appreciation rights (“SSARs”). Further, if the inclusion of shares potentially issuable for the Company's 3.50% exchangeable senior unsecured notes (see Note 10) is more dilutive than the inclusion of the interest expense for those exchangeable notes, the Company utilizes the “if-converted” method to calculate diluted earnings per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense and amortization of the discount recognized on the exchangeable notes and includes the number of shares potentially issuable related to the exchangeable notes in the weighted average shares outstanding. | ||||||||||||||||||||||||||
If the average market price of the Company's common stock exceeds the exercise price of stock options outstanding or the fair value on the date of grant of the SSARs, the treasury stock method is used to determine the incremental number of shares to be included in the diluted earnings per share computation. | ||||||||||||||||||||||||||
Net earnings attributable to TRW and the weighted average shares outstanding used in calculating basic and diluted earnings per share were: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||
Net earnings attributable to TRW | $ | 197 | $ | 163 | $ | 607 | $ | 589 | ||||||||||||||||||
Interest expense on exchangeable notes, net of tax | 1 | 1 | 3 | 3 | ||||||||||||||||||||||
Amortization of discount on exchangeable notes, net of tax | 1 | 2 | 3 | 4 | ||||||||||||||||||||||
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $ | 199 | $ | 166 | $ | 613 | $ | 596 | ||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 117 | 122.1 | 118.5 | 122.8 | ||||||||||||||||||||||
Basic earnings per share | $ | 1.68 | $ | 1.33 | $ | 5.12 | $ | 4.8 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 117 | 122.1 | 118.5 | 122.8 | ||||||||||||||||||||||
Effect of dilutive stock options, RSUs and SSARs | 1.3 | 1.3 | 1.2 | 1.3 | ||||||||||||||||||||||
Shares applicable to exchangeable notes | 5.9 | 5.9 | 5.9 | 5.9 | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 124.2 | 129.3 | 125.6 | 130 | ||||||||||||||||||||||
Diluted earnings per share | $ | 1.6 | $ | 1.28 | $ | 4.88 | $ | 4.58 | ||||||||||||||||||
For the three and nine months ended September 27, 2013, approximately 0.4 million and 1.6 million securities, respectively, were excluded from the calculation of diluted earnings per share because the inclusion of such securities in the calculation would have been anti-dilutive. | ||||||||||||||||||||||||||
For both the three and nine months ended September 27, 2012, approximately 2.2 million securities were excluded from the calculation of diluted earnings per share because the inclusion of such securities in the calculation would have been anti-dilutive. | ||||||||||||||||||||||||||
Equity. The following tables present a rollforward of the changes in equity attributable to TRW shareholders and to the noncontrolling interest. | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 3,853 | $ | 3,654 | $ | 199 | $ | 3,466 | $ | 3,269 | $ | 197 | ||||||||||||||
Net earnings | 206 | 197 | 9 | 176 | 163 | 13 | ||||||||||||||||||||
Other comprehensive earnings | 81 | 78 | 3 | 128 | 125 | 3 | ||||||||||||||||||||
Dividends paid to noncontrolling interest | - | - | - | -19 | - | -19 | ||||||||||||||||||||
Changes related to share-based compensation | 19 | 19 | - | 7 | 7 | - | ||||||||||||||||||||
Repurchase of capital stock | -260 | -260 | - | - | - | - | ||||||||||||||||||||
Ending balance of equity | $ | 3,899 | $ | 3,688 | $ | 211 | $ | 3,758 | $ | 3,564 | $ | 194 | ||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 3,769 | $ | 3,578 | $ | 191 | $ | 3,139 | $ | 2,940 | $ | 199 | ||||||||||||||
Net earnings | 639 | 607 | 32 | 618 | 589 | 29 | ||||||||||||||||||||
Other comprehensive earnings (losses) | -80 | -83 | 3 | 121 | 121 | - | ||||||||||||||||||||
Dividends paid to noncontrolling interest | -15 | - | -15 | -34 | - | -34 | ||||||||||||||||||||
Changes related to share-based compensation | 46 | 46 | - | 16 | 16 | - | ||||||||||||||||||||
Repurchase of capital stock | -460 | -460 | - | -102 | -102 | - | ||||||||||||||||||||
Ending balance of equity | $ | 3,899 | $ | 3,688 | $ | 211 | $ | 3,758 | $ | 3,564 | $ | 194 | ||||||||||||||
The following tables present changes in accumulated other comprehensive earnings (losses) attributable to TRW by component: | ||||||||||||||||||||||||||
Three Months Ended September 27, 2013 | ||||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | -34 | $ | -577 | $ | -16 | $ | -627 | ||||||||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | 67 | -10 | 16 | 73 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 5(a) | - | 5 | ||||||||||||||||||||||
Other comprehensive earnings (losses), net of tax | 67 | -5 | 16 | 78 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 33 | $ | -582 | $ | - | $ | -549 | ||||||||||||||||||
(a) | Includes actuarial gains of $11 million, reduced by prior service cost of $4 million, net of tax of $2 million. | |||||||||||||||||||||||||
Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 83 | $ | -559 | $ | 10 | $ | -466 | ||||||||||||||||||
Other comprehensive losses before reclassifications, net of tax | -50 | -37 | -9 | -96 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 14(b) | -1 | 13 | ||||||||||||||||||||||
Other comprehensive losses, net of tax | -50 | -23 | -10 | -83 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 33 | $ | -582 | $ | - | $ | -549 | ||||||||||||||||||
(b) | Includes actuarial gains of $33 million, reduced by prior service cost of $13 million, net of tax of $6 million. | |||||||||||||||||||||||||
Warranties. Product warranty liabilities are recorded based upon management estimates including such factors as the written agreement with the customer, the length of the warranty period, the historical performance of the product and likely changes in performance of newer products and the mix and volume of products sold. Product warranty liabilities are reviewed on a regular basis and adjusted to reflect actual experience. | ||||||||||||||||||||||||||
The following table presents the movement in the product warranty liability for the periods indicated: | ||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
September 27, | September 28, | |||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance | $ | 140 | $ | 130 | ||||||||||||||||||||||
Current period accruals, net of changes in estimates | 44 | 41 | ||||||||||||||||||||||||
Used for purposes intended | -30 | -32 | ||||||||||||||||||||||||
Effects of foreign currency translation | -1 | -1 | ||||||||||||||||||||||||
Ending balance | $ | 153 | $ | 138 | ||||||||||||||||||||||
Recently Adopted and Issued Accounting Pronouncements. There were no new accounting pronouncements adopted or issued during the three month period ended September 27, 2013 that have had or are expected to have a material impact on the Company's financial statements. |
Inventories
Inventories | 9 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Inventories [Abstract] | |||||||||||
Inventories | 3. Inventories | ||||||||||
The major classes of inventory are as follows: | |||||||||||
As of | |||||||||||
September 27, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||
Finished products and work in process | $ | 509 | $ | 454 | |||||||
Raw materials and supplies | 556 | 521 | |||||||||
Total inventories | $ | 1,065 | $ | 975 |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets | |||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
In the first quarter of 2013, the Company began to manage and report certain components that were previously within its Electronics segment as part of its Chassis Systems segment. As a result, these components were reclassified and are now included within the Company's Chassis Systems segment. As such, the Company has reallocated goodwill using a relative fair value allocation approach. | ||||||||||||||||||||||||||
The changes in goodwill for the period are as follows: | ||||||||||||||||||||||||||
Occupant | ||||||||||||||||||||||||||
Chassis | Safety | Automotive | ||||||||||||||||||||||||
Systems | Systems | Electronics | Components | |||||||||||||||||||||||
Segment | Segment | Segment | Segment | Total | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 796 | $ | 537 | $ | 423 | $ | - | $ | 1,756 | ||||||||||||||||
Allocation of goodwill due to change in segment reporting | 275 | - | -275 | - | - | |||||||||||||||||||||
Effects of foreign currency translation | - | 2 | - | - | 2 | |||||||||||||||||||||
Balance as of September 27, 2013 | $ | 1,071 | $ | 539 | $ | 148 | $ | - | $ | 1,758 | ||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||
The following table reflects intangible assets and related accumulated amortization: | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
27-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | 67 | $ | -65 | $ | 2 | $ | 67 | $ | -58 | $ | 9 | ||||||||||||||
Developed technology and other intangible assets | 107 | -89 | 18 | 106 | -86 | 20 | ||||||||||||||||||||
Total | 174 | $ | -154 | 20 | 173 | $ | -144 | 29 | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | 264 | 264 | 264 | 264 | ||||||||||||||||||||||
Total | $ | 438 | $ | 284 | $ | 437 | $ | 293 | ||||||||||||||||||
The Company expects that ongoing amortization expense will approximate the following: | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Remainder of 2013 | $ | 2 | ||||||||||||||||||||||||
Fiscal year 2014 | 2 | |||||||||||||||||||||||||
2015 and beyond | 16 | |||||||||||||||||||||||||
The expected amortization expense for 2015 and beyond primarily relates to land use rights. |
Other_Income_Expense_Net
Other (Income) Expense - Net | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Other (Income) Expense - Net [Abstract] | |||||||||||||||||||
Other (Income) Expense - Net | 5. Other (Income) Expense — Net | ||||||||||||||||||
The following table provides details of other (income) expense — net: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net provision for bad debts | $ | 2 | $ | 2 | $ | 4 | $ | 2 | |||||||||||
Net gains on sales of assets and divestitures | - | -3 | -1 | -6 | |||||||||||||||
Foreign currency losses | 13 | 5 | 19 | 3 | |||||||||||||||
Royalty and grant income | -7 | -1 | -13 | -7 | |||||||||||||||
Miscellaneous other income | -3 | -5 | -10 | -11 | |||||||||||||||
Other (income) expense — net | $ | 5 | $ | -2 | $ | -1 | $ | -19 |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2013 | |
Income Taxes [Abstract] | |
Income Taxes | 6. Income Taxes |
The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. | |
Income tax expense for the three months ended September 27, 2013 was $62 million on pre-tax earnings of $268 million and income tax expense for the nine months ended September 27, 2013 was $221 million on pre-tax earnings of $860 million. Income tax expense for both the three and nine months ended September 27, 2013 includes a tax benefit of $18 million relating to the enactment of tax legislation and reduction in corporate income tax rates in the United Kingdom. Income tax expense for the nine months ended September 27, 2013 also includes a tax benefit of $12 million relating to the enactment of the American Taxpayer Relief Act of 2012, and a net tax expense of $4 million relating to other matters, resulting in a combined net tax benefit of $26 million for the period. Income tax expense for the three months ended September 28, 2012 was $68 million on pre-tax earnings of $244 million and income tax expense for the nine months ended September 28, 2012 was $253 million on pre-tax earnings of $871 million. Income tax expense for both the three and nine months ended September 28, 2012 includes a tax benefit of $9 million relating to the enactment of tax legislation and reduction in corporate income tax rates in the United Kingdom. For the periods ended September 27, 2013 and September 28, 2012, the income tax rate varies from the United States statutory income tax rate primarily due to favorable foreign tax rates, holidays, and credits, as well as the effect of the various items noted above. | |
The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence. The Company utilizes a rolling twelve quarters of pre-tax results adjusted for significant permanent book to tax differences as a measure of cumulative results in recent years. The factors considered by management in its determination of the probability of the realization of the deferred tax assets include but are not limited to: recent historical financial results, historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. If, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. If operating results improve or deteriorate on a sustained basis, the Company's conclusions regarding the need for a valuation allowance could change, resulting in either the reversal or initial recognition of a valuation allowance in the future, which could have a significant impact on income tax expense in the period recognized and subsequent periods. The U.S. economic recovery and improvement in the North American automotive market, along with improved Company performance, have all had a favorable impact on U.S. operating results. If such performance continues, the Company may be in a position, in future periods, to utilize certain historical foreign tax credits in excess of previous expectations, which could have a significant favorable impact on income tax expense in the period recognized. | |
The Company operates in multiple jurisdictions throughout the world and the income tax returns of several subsidiaries in various tax jurisdictions are currently under examination. Although it is not possible to predict the timing of the conclusions of all ongoing tax audits with accuracy, it is possible that some or all of these examinations will conclude within the next 12 months. It is also reasonably possible that certain statute of limitations may expire relating to various foreign jurisdictions within the next 12 months. As such, it is possible that a change in the Company's gross unrecognized tax benefits may occur; however, it is not possible to reasonably estimate the effect this may have upon the gross unrecognized tax benefits. | |
On January 2, 2013, the American Taxpayer Relief Act of 2012 was enacted, which retroactively reinstated and extended various tax provisions applicable to the Company, including the research and development tax credit and the look through rules for controlled foreign corporations. The effect of a tax law change, including any retroactive effect, is accounted for in the period of enactment. As a result, the Company recorded a discrete tax benefit of approximately $12 million during the first quarter related to this legislation. | |
On July 17, 2013, the United Kingdom – Finance Bill of 2013 received Royal Assent, thereby becoming law as the Finance Act 2013 (the “Act”). The Act provides for a reduction to the corporate income tax rate from 23% to 21% effective April 1, 2014, with a further reduction to 20% effective April 1, 2015. The impact of this tax legislation was recorded as a discrete item during the third quarter, the period of enactment, resulting in a tax benefit of approximately $18 million. | |
Pension_Plans_and_Postretireme
Pension Plans and Postretirement Benefits Other Than Pensions | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions | 7. Pension Plans and Postretirement Benefits Other Than Pensions | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide the components of net pension (income) cost for the Company’s defined benefit pension plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 6 | $ | 1 | $ | - | $ | 4 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 10 | 46 | 9 | 15 | 53 | 9 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -15 | -77 | -5 | -20 | -81 | -5 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 7 | - | 4 | 5 | - | 3 | |||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -1 | 2 | - | - | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | 3 | $ | -31 | $ | 13 | $ | 3 | $ | -28 | $ | 11 | |||||||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 2 | $ | - | $ | 17 | $ | 3 | $ | - | $ | 14 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 31 | 140 | 27 | 45 | 160 | 28 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -44 | -233 | -15 | -60 | -244 | -15 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 20 | - | 14 | 15 | - | 7 | |||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -1 | 2 | - | - | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | 9 | $ | -93 | $ | 42 | $ | 5 | $ | -84 | $ | 34 | |||||||||||||||||||||||||||||||||||||
The Company has offered voluntary lump sum payment opportunities to certain of its U.S. employees. These voluntary lump sum payments are expected to be accounted for and paid during the fourth quarter of 2013, and will be funded with pension plan assets when paid. While the Company expects to incur a settlement loss in conjunction with the payments, the amount cannot be determined at this time. | |||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions ("OPEB") | |||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide the components of net OPEB (income) cost for the Company's plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service | $ | 1 | $ | - | $ | 1 | $ | -1 | |||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 3 | 1 | 4 | 2 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization | -3 | -1 | -6 | -1 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | -1 | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB income | $ | - | $ | - | $ | -1 | $ | - | |||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 1 | $ | - | |||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 10 | 3 | 12 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization | -10 | -3 | -16 | -4 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | -7 | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB (income) cost | $ | -6 | $ | - | $ | -3 | $ | - |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||
Fair Value Measurements | 8. Fair Value Measurements | ||||||||||||||||||
The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. This hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs, as follows: | |||||||||||||||||||
Level 1. The Company utilizes the market approach to determine the fair value of its assets and liabilities under Level 1 of the fair value hierarchy. The market approach pertains to transactions in active markets involving identical or comparable assets or liabilities. | |||||||||||||||||||
Level 2. The fair values determined through Level 2 of the fair value hierarchy are derived principally from or corroborated by observable market data under the market approach. Inputs include quoted prices for similar assets and liabilities (risk adjusted), and market-corroborated inputs, such as market comparables, interest rates, yield curves and other items that allow value to be determined. | |||||||||||||||||||
Level 3. The Company utilizes the income approach or the cost approach, as appropriate, to determine the fair value of its assets and liabilities under Level 3 of the fair value hierarchy. The fair value is derived principally from unobservable inputs from the Company's own assumptions about market risk, developed based on the best information available, subject to cost-benefit analysis, and may include the Company's own data. When there are pension related assets with fair value determined through Level 3, fair value is derived principally from unobservable inputs provided by the trustee. When there are no observable comparables, inputs used to determine value are derived from Company-specific inputs, such as projected financial data and the Company's own views about the assumptions that market participants would use. | |||||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | |||||||||||||||||||
The fair value measurements for assets and liabilities recognized in the Company’s consolidated balance sheets are as follows: | |||||||||||||||||||
As of | |||||||||||||||||||
27-Sep-13 | 31-Dec-12 | ||||||||||||||||||
Carrying | Fair | Measurement | Carrying | Fair | |||||||||||||||
Value | Value | Approach | Value | Value | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Foreign currency exchange contracts — current assets | $ | 13 | $ | 13 | Level 2 | $ | 16 | $ | 16 | ||||||||||
Foreign currency exchange contracts — noncurrent assets | 2 | 2 | Level 2 | 9 | 9 | ||||||||||||||
Short-term debt, fixed and floating rate | 111 | 111 | Level 2 | 67 | 67 | ||||||||||||||
Fixed rate long-term debt | 1,780 | 2,128 | Level 2 | 1,395 | 1,677 | ||||||||||||||
Foreign currency exchange contracts — current liability | 2 | 2 | Level 2 | - | - | ||||||||||||||
Interest rate swap contracts — noncurrent liability | - | - | Level 2 | 1 | 1 | ||||||||||||||
The carrying value of short-term debt approximates fair value because of the short term nature of these instruments. | |||||||||||||||||||
The fair value of long-term debt was determined primarily from quoted market prices, as provided by participants in the secondary marketplace. For long-term debt without a quoted market price, the Company estimates the fair value using discounted cash flow models with market based borrowing rates for similar types of arrangements. Upon issuance of the Company's exchangeable notes, a debt discount was recognized as a decrease in debt and an increase in equity. Accordingly, the Company's fair value and carrying value of long-term fixed rate debt as of September 27, 2013 is net of the unamortized discount of $18 million. | |||||||||||||||||||
The Company's foreign currency exchange contracts, commodity contracts, and interest rate swap contracts are recorded at fair value, using quoted currency forward rates, quoted commodity forward rates, and quoted interest rate curves, respectively, to calculate forward values, and then discounting the forward values. In addition, the Company's calculation of the fair value of its foreign currency option contracts uses quoted currency volatilities. | |||||||||||||||||||
The discount rates for all derivative contracts are based on quoted bank deposit or swap interest rates. For contracts which, when aggregated by counterparty, are in a liability position, the rates are adjusted by the credit spread which market participants would apply if buying these contracts from the Company's counterparties. | |||||||||||||||||||
There were no changes in the Company's valuation techniques during the nine months ended September 27, 2013. | |||||||||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||
In addition to items that are measured at fair value on a recurring basis, and shown in the table above, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis. Such assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets, including investments in affiliates, which are written down to fair value as a result of impairment (see Note 11 for asset impairments). | |||||||||||||||||||
The Company has determined that the fair value measurements related to each of these assets and liabilities rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets and settlement of liabilities, as observable inputs are not available. As such, the Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the useful life of the long-lived assets by using a risk-adjusted rate for the Company. |
Financial_Instruments
Financial Instruments | 9 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||||||||||
Financial Instruments | 9. Financial Instruments | |||||||||||||||||||||||||
The Company is exposed to certain financial market risks related to its ongoing business operations. The primary risks managed through derivative financial instruments and hedging activities are foreign currency exchange rate risk and interest rate risk. Derivative financial instruments and hedging activities are utilized to protect the Company's cash flow from adverse movements in foreign currency exchange rates, as well as to manage interest costs. The Company is exposed to credit loss in the event of nonperformance by the counterparty to the derivative financial instruments. The Company attempts to limit this exposure by entering into agreements directly with a number of major financial institutions that meet the Company's credit standards and that are expected to fully satisfy their obligations under the contracts, and by monitoring the Company's credit exposure to each counterparty in light of its current credit quality. | ||||||||||||||||||||||||||
As of September 27, 2013, the Company had a notional value of $2.4 billion in foreign exchange contracts outstanding. These foreign exchange contracts mature at various dates through August 2016. Foreign currency exposures are reviewed monthly and any natural offsets are considered prior to entering into a derivative financial instrument. | ||||||||||||||||||||||||||
As of September 27, 2013, the Company had two offsetting interest rate swap agreements outstanding, each with a notional value of $25 million. The Company's exposure to interest rate risk arises primarily from changes in LIBOR. | ||||||||||||||||||||||||||
Derivative Instruments. The fair values of the Company's derivative instruments as of September 27, 2013 and December 31, 2012 was $34 million and $40 million, respectively, in the asset position, and $21 million and $16 million, respectively, in the liability position. These amounts consist of interest rate contracts, foreign currency exchange contracts, and commodity contracts, none of which are individually significant. | ||||||||||||||||||||||||||
Cash Flow Hedges. For any derivative instrument that is designated and qualifies as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”), and is subsequently reclassified into earnings in the same period, or periods, during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in earnings. Approximately $2 million of gains, net of tax, which are included in OCI are expected to be reclassified into earnings in the next twelve months. | ||||||||||||||||||||||||||
For the three and nine months ended September 27, 2013, the effective portion of the gains and losses on derivatives designated as cash flow hedges and recognized in OCI was a gain of $22 million and a loss of $11 million, respectively, all of which was related to foreign currency exchange contracts. The effective portion of gains and losses on cash flow hedges reclassified from OCI into the statement of earnings for the three and nine months ended September 27, 2013 was de minimis and a gain of $1 million, respectively, and was included in various line items on the statement of earnings. | ||||||||||||||||||||||||||
For the three and nine months ended September 28, 2012, the effective portion of the gains and losses on derivatives designated as cash flow hedges and recognized in OCI was a gain of $47 million and a gain of $82 million, respectively, all of which were related to foreign currency exchange contracts. The effective portion of gains and losses on cash flow hedges reclassified from OCI into the statement of earnings for the three and nine months ended September 28, 2012 was a gain of $2 million and $1 million, respectively, and was included in various line items on the statement of earnings. | ||||||||||||||||||||||||||
Gains or losses recognized in income related to hedge ineffectiveness for each of the three and nine month periods ended September 27, 2013 and September 28, 2012 were not significant. | ||||||||||||||||||||||||||
Fair Value Hedges. For any derivative instrument that is designated and qualifies as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the underlying hedged item is recognized in current earnings. For the three and nine months ended September 27, 2013 and September 28, 2012, the Company had no fair value hedges outstanding. | ||||||||||||||||||||||||||
Undesignated Derivatives. For the three and nine months ended September 27, 2013, the gains and losses recognized in other (income) expense-net were de minimis and a loss of $3 million, respectively, for derivative instruments not designated as hedging instruments. For the three and nine months ended September 28, 2012, the Company recognized gains of $5 million and $15 million, respectively, in other (income) expense – net for derivative instruments not designated as hedging instruments. | ||||||||||||||||||||||||||
Credit-Risk-Related Contingent Features. The Company has entered into International Swaps and Derivatives Association (“ISDA”) agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require the Company to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position. As of September 27, 2013, the Company had not posted any collateral to support its derivatives in a liability position. | ||||||||||||||||||||||||||
Offsetting of Derivative Assets and Liabilities | ||||||||||||||||||||||||||
The following table reflects the offsetting of derivative assets and liabilities: | ||||||||||||||||||||||||||
As of September 27, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Reported | Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Reported | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||||
Foreign Currency | $ | 34 | $ | -19 | $ | 15 | $ | 40 | $ | -15 | $ | 25 | ||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||
Interest Rate Contracts | - | - | - | 1 | - | 1 | ||||||||||||||||||||
Foreign Currency | 21 | -19 | 2 | 15 | -15 | - |
Debt
Debt | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Debt [Abstract] | ||||||||||||
Debt | 10. Debt | |||||||||||
Total outstanding debt of the Company consisted of the following: | ||||||||||||
As of | ||||||||||||
September 27, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
(Dollars in millions) | ||||||||||||
Short-term debt | $ | 111 | $ | 67 | ||||||||
Long-term debt: | ||||||||||||
6.375% Senior notes, due 2014 | $ | 229 | $ | 224 | ||||||||
7.00% Senior notes, due 2014 | 233 | 309 | ||||||||||
7.25% Senior notes, due 2017 | 446 | 448 | ||||||||||
8.875% Senior notes, due 2017 | 205 | 219 | ||||||||||
4.50% Senior notes, due 2021 | 400 | - | ||||||||||
Exchangeable senior notes, due 2015 | 155 | 150 | ||||||||||
Revolving credit facility | - | - | ||||||||||
Capitalized leases | 18 | 13 | ||||||||||
Other borrowings | 94 | 32 | ||||||||||
Total long-term debt | 1,780 | 1,395 | ||||||||||
Less current portion | 470 | 26 | ||||||||||
Long-term debt, net of current portion | $ | 1,310 | $ | 1,369 | ||||||||
Senior Notes | ||||||||||||
4.50% Senior Notes. In February 2013, the Company issued $400 million in aggregate principal amount of 4.50% senior unsecured notes due 2021 (the “4.50% Senior Notes”) in a private placement. Interest is payable semi-annually on March 1 and September 1 of each year beginning September 1, 2013. Net proceeds from the offering were approximately $394 million after deducting debt issuance costs. | ||||||||||||
8.875% Senior Notes. In November 2009, the Company issued $250 million in aggregate original principal amount of 8.875% senior unsecured notes due 2017 (the “8.875% Senior Notes”) in a private placement. Interest is payable semi-annually on June 1 and December 1 of each year. The 8.875% Senior Notes are redeemable in whole or in part on or after December 1, 2013 at a redemption price of 104.438% of par, which is reduced to 102.219% on December 1, 2014 and 100% on December 1, 2015 and thereafter. | ||||||||||||
2007 Senior Notes. In March 2007, the Company issued 7% senior unsecured notes and 6⅜% senior unsecured notes, each due March 2014, in original principal amounts of $500 million and €275 million, respectively, and 7¼% senior unsecured notes due 2017 in the original principal amount of $600 million (collectively, the “2007 Senior Notes”) in a private placement. Interest is payable semi-annually on March 15 and September 15 of each year. | ||||||||||||
Senior Note Repurchases. During the nine months ended September 27, 2013, the Company repurchased portions of its senior unsecured notes due in 2014 and 2017 totaling approximately $91 million in principal amount and recorded a loss on retirement of debt of $5 million. During the nine months ended September 28, 2012, the Company repurchased portions of its senior notes totaling approximately $48 million in principal amount and recorded a loss on retirement of debt of $5 million. | ||||||||||||
Exchangeable Senior Notes | ||||||||||||
In November 2009, the Company issued approximately $259 million in aggregate principal amount of 3.50% exchangeable senior unsecured notes due 2015 (the “Exchangeable Senior Notes”) in a private placement. Prior to September 1, 2015, the notes are exchangeable only upon specified events or conditions being met and, thereafter, at any time. One condition, the sales price condition (described below), was met as of September 27, 2013, and as such, the notes are exchangeable in the fourth quarter of 2013. They will remain exchangeable in subsequent quarters if the sale price condition continues to be met, which occurs if the last reported sale price of the Company's common stock for at least 20 of the last 30 trading days of the immediately preceding quarter is greater than 130% of the applicable exchange price. The initial exchange rate is 33.8392 shares of the Company's common stock per $1,000 principal amount of notes (equivalent to an exchange price of approximately $29.55 per share of common stock), subject to adjustment. Upon exchange, the Company's exchange obligation may be settled, at its option, in shares of its stock, cash or a combination of cash and shares of its stock. Interest is payable on June 1 and December 1 of each year. The Exchangeable Senior Notes will mature on December 1, 2015, unless earlier exchanged, repurchased by the Company at the holder's option upon a fundamental change, or redeemed by the Company after December 6, 2013, at the Company's option if certain conditions are met. | ||||||||||||
The Exchangeable Senior Notes were recorded with a debt discount which decreased debt and increased paid-in-capital in order to separate the liability and embedded equity components. The debt component will accrete up to the principal amount to effectively yield 9.0% over the term of the debt. The debt discount as of September 27, 2013 and December 31, 2012 was $18 million and $24 million, respectively. The total interest expense recognized for the three and nine months ended September 27, 2013 was approximately $3 million and $10 million, respectively, including $2 million and $5 million in each respective period relating to the stated coupon rate. The total interest expense recognized for the three and nine months ended September 28, 2012 was approximately $4 million and $10 million, respectively, including $2 million and $5 million in each respective period relating to the stated coupon rate. | ||||||||||||
Subsequent Event. After September 27, 2013, Exchangeable Senior Notes in principal amount of approximately $26 million were exchanged by holders for 879,982 shares of Company stock (see Note 12). | ||||||||||||
Senior Credit Facilities | ||||||||||||
The Company's Eighth Amended and Restated Credit Agreement dated September 28, 2012 (the “Eighth Credit Agreement”) provides for senior credit facilities consisting of (i) a revolving credit facility in the amount of $1.4 billion which matures in September 2017, subject to certain liquidity conditions being met in October 2016 and July 2017 (the “Revolving Credit Facility”), and (ii) additional availability which may be used in the future for one or more term loans or additional revolving facilities (together with the Revolving Credit Facility, the “Facilities”). | ||||||||||||
The commitment fee and the applicable margin for borrowing on the Revolving Credit Facility are subject to a ratings-based grid. The applicable margin in effect as of September 27, 2013 was 0.75% with respect to base rate borrowings and 1.75% with respect to eurocurrency borrowings. The commitment fee on the undrawn amounts under the Revolving Credit Facility was 0.30%. | ||||||||||||
The Company received an investment grade corporate credit rating with a stable outlook from Standard & Poor's Rating Services in the third quarter of 2013. Due to such investment grade rating, under the terms of the Revolving Credit Facility, the Company gave notice which automatically released the collateral securing the obligations under the facility. The Company may be required to reinstate the released collateral if the Company no longer has an investment grade corporate credit rating with a stable outlook from at least one of the required rating agencies. Obligations under the Facilities remain guaranteed on an unsecured basis by substantially all existing and future wholly-owned domestic subsidiaries of the Company. In addition, foreign borrowings under the Revolving Credit Facility remain guaranteed by the foreign borrowers. | ||||||||||||
Debt Repurchases | ||||||||||||
As market conditions warrant, the Company may, from time to time, repurchase debt securities, including exchangeable debt securities, issued by the Company or its subsidiaries, in privately negotiated or open market transactions, by tender offer, exchange offer, or by other means, or the Company may redeem such debt securities. | ||||||||||||
Other Borrowings | ||||||||||||
The Company has borrowings under uncommitted credit agreements in many of the countries in which it operates. The borrowings are from various domestic and international banks at quoted market interest rates. |
Restructuring_Charges_and_Asse
Restructuring Charges and Asset Impairments | 9 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Restructuring Charges And Asset Impairments [Abstract] | |||||||||||
Restructuring Charges and Asset Impairments | 11. Restructuring Charges and Asset Impairments | ||||||||||
The Company incurred restructuring charges for severance and other charges as part of its ongoing efforts to better align its cost structure with global automotive market conditions. For the three months ended September 27, 2013, the Occupant Safety Systems segment incurred $2 million of severance and other charges. For the nine months ended September 27, 2013, the Chassis Systems segment and Occupant Safety Systems segment incurred $17 million and $29 million, respectively, of severance and other charges, while the Automotive Components segment recorded $6 million of income related to changes in estimates. | |||||||||||
For the three and nine months ended September 27, 2013, the Chassis Systems segment incurred $3 million of other asset impairments related to the write-down of certain machinery and equipment to fair value based on estimated future cash flows. | |||||||||||
For the three months ended September 28, 2012, the Chassis Systems segment recorded $2 million of asset impairments related to restructuring activities, and the Automotive Components segment incurred $1 million of severance and other charges. For the nine months ended September 28, 2012, the Automotive Components segment incurred $3 million of severance and other charges, and the Chassis Systems segment incurred $2 million of severance and other charges and $2 million of asset impairments related to restructuring activities. | |||||||||||
Restructuring Reserves | |||||||||||
The following table illustrates the movement of the restructuring reserves for severance and other charges, including reserves related to severance-related postemployment benefits for both periods presented: | |||||||||||
Nine Months Ended | |||||||||||
September 27, | September 28, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||
Beginning balance | $ | 121 | $ | 59 | |||||||
Current period accruals, net of changes in estimates | 40 | 4 | |||||||||
Used for purposes intended | -64 | -17 | |||||||||
Effects of foreign currency translation | 3 | - | |||||||||
Ending balance | $ | 100 | $ | 46 | |||||||
Of the $100 million restructuring reserves as of September 27, 2013, approximately $40 million to $45 million is expected to be paid in the remainder of 2013. The remaining balance is expected to be paid in 2014 to 2015 and is comprised primarily of involuntary employee termination arrangements in Europe. |
Capital_Stock
Capital Stock | 9 Months Ended |
Sep. 27, 2013 | |
Capital Stock [Abstract] | |
Capital Stock | 12. Capital Stock |
The Company's authorized capital stock consists of (i) 500 million shares of common stock, par value $.01 per share (the “Common Stock”), of which 114,452,986 shares were issued and outstanding as of September 27, 2013 (net of 4,668 shares of treasury stock withheld at cost to satisfy tax obligations for a specific grant under the Company's stock-based compensation plan); and (ii) 250 million shares of preferred stock, par value $.01 per share, including 500,000 shares of Series A junior participating preferred stock, of which no shares are currently issued or outstanding. | |
From time to time, capital stock is issued in conjunction with the exercise of stock options and SSARs and the vesting of RSUs issued as part of the Company's stock incentive plan (see Note 13). | |
Share Repurchase Programs. On February 16, 2012, the Company announced that its board of directors approved a share repurchase program that is intended to offset, on an ongoing basis, the dilution created by the Company's stock incentive plan (the “Anti-Dilution Program”). In addition, on October 1, 2012, the Company announced a share repurchase program that had been approved by its board of directors during the third quarter of 2012 to acquire up to $1 billion of the Company's outstanding common stock that extends through December 31, 2014. On October 29, 2013, the Company announced that its board of directors had increased the amount of shares authorized to be repurchased under this program by an additional $1 billion, bringing the total repurchase authorization thereunder to $2 billion, and extended the program through December 31, 2016. | |
In May 2013, the Company entered into an accelerated share repurchase (“ASR”) agreement with a third-party financial institution to repurchase the Company's common stock. Under the ASR agreement, the Company made an up-front payment of $125 million and received an initial delivery of approximately 1.7 million shares in the second quarter of 2013. The agreement was settled in the third quarter of 2013, and the Company received final delivery of an additional 205,965 shares, resulting in a weighted-average price per share of $64.98 for the ASR. | |
In September 2013, the Company entered into a separate ASR agreement with a third-party financial institution to repurchase the Company's common stock. Under this ASR agreement, the Company made an up-front payment of $125 million and received an initial delivery of approximately 1.4 million shares in the third quarter of 2013. The total number of shares to be ultimately delivered, and therefore the average price paid per share, will be determined at the end of the repurchase period based on the volume weighted average price of the Company's common stock during that period. The September ASR will be completed during the fourth quarter of 2013. | |
During the three and nine months ended September 27, 2013, the Company repurchased under a variety of different methods, including the ASR programs discussed above, 3,525,988 shares and 6,476,816 shares, respectively, of its common stock for a total of $260 million and $460 million, respectively. During the nine months ended September 27, 2013, the Company reached its 2013 board authorized limit under the Anti-Dilution Program to repurchase 1.5 million shares of its common stock; however, additional shares may be purchased under the program in subsequent years. | |
Subsequent Event. After September 27, 2013, Exchangeable Senior Notes in principal amount of approximately $26 million were exchanged by holders for 879,982 shares of Company stock (see Note 10). | |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||
Share-Based Compensation [Abstract] | ||||||||||||||||||
Share-Based Compensation | 13. Share-Based Compensation | |||||||||||||||||
Equity Awards | ||||||||||||||||||
On February 22, 2013, the Company granted 1,199,551 SSARs to executive officers and certain employees of the Company pursuant to the TRW Automotive Holdings Corp. 2012 Stock Incentive Plan (the “2012 Plan”). Each SSAR entitles the grantee to receive the appreciation in value of one underlying share of the Company's stock from the grant date fair market value of $58.20 to the fair market value on the exercise date, although the stock price at exercise is limited to a maximum value of $110.00. | ||||||||||||||||||
On February 22, 2013, the Company also granted 428,169 RSUs to executive officers, independent directors and certain employees of the Company pursuant to the 2012 Plan. Additionally, the Company granted 4,400 phantom stock units (“PSUs”) to certain employees of the Company. Each PSU entitles the grantee to receive a cash payment upon vesting equal to the fair market value on the vesting date of one share of the Company's common stock. | ||||||||||||||||||
As of September 27, 2013, the Company had 4,541,450 shares of Common Stock available for issuance under the 2012 Plan. In addition, 475,664 stock options, 3,133,453 SSARs, 812,977 nonvested RSUs and 15,300 nonvested PSUs were outstanding as of September 27, 2013. All of the SSARs and substantially all of the stock options have an 8-year term and vest ratably over three years, all the RSUs vest ratably over three years and a majority of the PSUs cliff vest after three years. As a result of changes to retirement eligibility provisions for awards granted in 2013, the Company applies a non-substantive vesting period approach whereby expense is accelerated for those employees that receive awards and are eligible to retire prior to the award vesting. | ||||||||||||||||||
Share-based compensation expense recognized for the Plan was as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Stock options and SSARs | $ | 3 | $ | 1 | $ | 9 | $ | 4 | ||||||||||
RSUs | 6 | 4 | 21 | 12 | ||||||||||||||
Total share-based compensation expense | $ | 9 | $ | 5 | $ | 30 | $ | 16 | ||||||||||
Cash Awards | ||||||||||||||||||
For the three and nine months ended September 27, 2013, the Company recognized compensation expense of de minimis and approximately $1 million, respectively, associated with its cash-settled share-based compensation awards. For the three and nine months ended September 28, 2012, the Company recognized compensation expense associated with its cash-settled share-based compensation awards of approximately $1 million and $4 million, respectively. As of September 27, 2013, both the liability and fair value of the cash awards was $1 million. As of December 31, 2012, the liability and fair value of the cash awards were $1 million and $3 million, respectively. | ||||||||||||||||||
2011 and 2010 Awards. In February 2011 and March 2010, the Company issued cash incentive awards for executive officers (the “2011 Awards” and “2010 Awards”, respectively). Each award is divided into three tranches of equal value with a tranche vesting on each of the first, second and third anniversaries of the agreement date. During the nine months ended September 27, 2013, the second tranche of the 2011 Awards and the third tranche of the 2010 Awards vested and were fully paid. Subsequent to the payment of the second tranche, the target aggregate value of the awards granted in 2011 is approximately $1 million, but could range from a minimum value of zero to a maximum value of $1.2 million depending on movement of the Company's stock price during certain determination periods. | ||||||||||||||||||
2009 Awards. In February 2009, the Company issued cash incentive awards for executive officers, vice presidents and independent directors and retention awards for executive officers and vice presidents of the Company (the “2009 Awards”). For compensation expense purposes, the fair value of the share-based portion of the 2009 Awards was determined based on a lattice model (the Monte Carlo simulation) and was re-measured quarterly. During the first quarter of 2012, approximately $40 million was paid to fully satisfy the obligation for these awards. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 27, 2013 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions |
Secondary Offerings. In February and August of 2013, Automotive Investors LLC (“AI LLC”), an affiliate of The Blackstone Group L.P. (“Blackstone”), and certain management stockholders sold 10 million and 10.9 million shares, respectively, of the Company's common stock in underwritten registered public offerings (the “Offerings”) pursuant to the Company's shelf registration statement on Form S-3 filed with the SEC on August 10, 2012. The Company did not receive any proceeds from the Offerings, nor did its number of shares outstanding materially change. The Company incurred expenses totaling less than $1 million in connection with these Offerings. As a result of the Offerings, AI LLC and Blackstone no longer hold any ownership interest in the Company. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||
Segment Information | 15. Segment Information | ||||||||||||||||||
In the first quarter of 2013, the Company began to manage and report certain components that were previously within its Electronics segment as part of its Chassis Systems segment. As a result, these components were reclassified and are now included within the Company's Chassis Systems segment. As such, the Company has made appropriate adjustments to its segment-related disclosures for 2013, as well as prior periods. | |||||||||||||||||||
The following tables present certain financial information by segment: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Sales to external customers: | |||||||||||||||||||
Chassis Systems | $ | 2,802 | $ | 2,615 | $ | 8,512 | $ | 8,045 | |||||||||||
Occupant Safety Systems | 785 | 770 | 2,485 | 2,504 | |||||||||||||||
Electronics | 172 | 154 | 518 | 502 | |||||||||||||||
Automotive Components | 453 | 426 | 1,424 | 1,361 | |||||||||||||||
Total sales to external customers | $ | 4,212 | $ | 3,965 | $ | 12,939 | $ | 12,412 | |||||||||||
Intersegment sales: | |||||||||||||||||||
Chassis Systems | $ | 4 | $ | 4 | $ | 12 | $ | 15 | |||||||||||
Occupant Safety Systems | 32 | 23 | 98 | 62 | |||||||||||||||
Electronics | 134 | 127 | 406 | 393 | |||||||||||||||
Automotive Components | 18 | 19 | 55 | 63 | |||||||||||||||
Total intersegment sales | $ | 188 | $ | 173 | $ | 571 | $ | 533 | |||||||||||
Total segment sales: | |||||||||||||||||||
Chassis Systems | $ | 2,806 | $ | 2,619 | $ | 8,524 | $ | 8,060 | |||||||||||
Occupant Safety Systems | 817 | 793 | 2,583 | 2,566 | |||||||||||||||
Electronics | 306 | 281 | 924 | 895 | |||||||||||||||
Automotive Components | 471 | 445 | 1,479 | 1,424 | |||||||||||||||
Total segment sales | $ | 4,400 | $ | 4,138 | $ | 13,510 | $ | 12,945 | |||||||||||
Earnings before taxes: | |||||||||||||||||||
Chassis Systems | $ | 188 | $ | 170 | $ | 600 | $ | 560 | |||||||||||
Occupant Safety Systems | 63 | 56 | 175 | 201 | |||||||||||||||
Electronics | 28 | 28 | 86 | 101 | |||||||||||||||
Automotive Components | 31 | 23 | 119 | 88 | |||||||||||||||
Segment earnings before taxes | 310 | 277 | 980 | 950 | |||||||||||||||
Corporate expense and other | -18 | -19 | -50 | -20 | |||||||||||||||
Financing costs | -33 | -26 | -97 | -82 | |||||||||||||||
Loss on retirement of debt — net | - | -1 | -5 | -6 | |||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 9 | 13 | 32 | 29 | |||||||||||||||
Earnings before income taxes | $ | 268 | $ | 244 | $ | 860 | $ | 871 | |||||||||||
See Note 11 for a summary of restructuring charges and asset impairments by segment. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 27, 2013 | |
Contingencies [Abstract] | |
Contingencies | 16. Contingencies |
Various claims, lawsuits and administrative proceedings are pending or threatened against the Company or its subsidiaries, covering a wide range of matters that arise in the ordinary course of the Company's business activities with respect to commercial, patent, product liability, environmental and occupational safety and health law matters. In addition, the Company and its subsidiaries are conducting a number of environmental investigations and remedial actions at current and former locations of certain of the Company's subsidiaries. Along with other companies, certain subsidiaries of the Company have been named potentially responsible parties for certain waste management sites. Each of these matters is subject to various uncertainties, and some of these matters may be resolved unfavorably with respect to the Company or the relevant subsidiary. A reserve estimate for each environmental matter is established using standard engineering cost estimating techniques on an undiscounted basis. In the determination of such costs, consideration is given to the professional judgment of Company environmental engineers, in consultation with outside environmental specialists, when necessary. At multi-party sites, the reserve estimate also reflects the expected allocation of total project costs among the various potentially responsible parties. | |
As of September 27, 2013, the Company had reserves for environmental matters of $69 million. In addition, the Company has established a receivable from Northrop Grumman Corporation (“Northrop”) for a portion of this environmental liability as a result of indemnification provided for in the master purchase agreement between Northrop and an affiliate of Blackstone under which Northrop has agreed to indemnify the Company for 50% of any environmental liabilities associated with the operation or ownership of the Company's automotive business existing at or prior to the acquisition, subject to certain exceptions. The Company believes any liability, in excess of amounts accrued in its financial statements, that may result from the resolution of environmental matters for which sufficient information is available to support these cost estimates, will not have a material adverse effect on the Company's financial position, results of operations or cash flows. However, the Company cannot predict the effect on the Company's financial position, results of operations or cash expenditures for aspects of certain matters for which there is insufficient information. In addition, the Company cannot predict the effect of compliance with environmental laws and regulations with respect to unknown environmental matters on the Company's financial statements or the possible effect of compliance with environmental requirements imposed in the future. | |
The Company faces an inherent business risk of exposure to product liability, recall and warranty claims in the event that its products actually or allegedly fail to perform as expected or the use of its products results, or is alleged to result, in bodily injury and/or property damage. Accordingly, the Company could experience material warranty, recall or product liability losses in the future. For further information, including quantification of the Company's product warranty liability, see the description of “Warranties” in Note 2. | |
While certain of the Company's subsidiaries have been subject in recent years to asbestos-related claims, management believes that such claims will not have a material adverse effect on the Company's financial statements. In general, these claims seek damages for illnesses alleged to have resulted from exposure to asbestos used in certain components sold in the past by the Company's subsidiaries. Management believes that the majority of the claimants were vehicle mechanics. The vast majority of these claims name as defendants numerous manufacturers and suppliers of a variety of products allegedly containing asbestos. Management believes that, to the extent any of the products sold by the Company's subsidiaries and at issue in these cases contained asbestos, the asbestos was encapsulated. Based upon several years of experience with such claims, management believes that only a small proportion of the claimants has or will ever develop any asbestos-related illness. | |
Neither settlement costs in connection with asbestos claims nor annual legal fees to defend these claims have been material in the past. These claims are strongly disputed by the Company and it has been its policy to defend against them aggressively. Many of these cases have been dismissed without any payment whatsoever. Moreover, there is significant insurance coverage with solvent carriers with respect to these claims. However, while costs to defend and settle these claims in the past have not been material, there can be no assurances that this will remain so in the future. | |
Management believes that the ultimate resolution of the foregoing matters will not have a material effect on the Company's financial statements as a whole. | |
Antitrust Matters | |
Antitrust authorities, including those in the United States and Europe, are investigating possible violations of competition (antitrust) laws by automotive parts suppliers (referred to herein as the “Antitrust Investigations”). The U.S. Department of Justice (“DOJ”) initiated an investigation into the Company's Occupant Safety Systems business in June 2011, which was concluded when the court approved a plea agreement between one of the Company's German subsidiaries and the DOJ. The Antitrust Investigation by the European Commission is ongoing. While the duration and outcome of the European Commission's investigation is uncertain, a determination that the Company has violated European competition (antitrust) laws could result in significant penalties which could have a material adverse effect on the Company's financial condition, results of operations and cash flows, as well as its reputation. While the Company cannot estimate the ultimate financial impact resulting from the European investigation, it will continue to evaluate developments in this matter on a regular basis and will record an accrual as and when appropriate. | |
The Company's policy is to comply with all laws and regulations, including all antitrust and competition laws. The Company is cooperating fully with the competition authorities in the context of their ongoing investigations. | |
The Company has been named as a defendant in purported class action lawsuits filed on various dates from June 2012 through July 2013, which are now pending in the United States District Court for the Eastern District of Michigan and in various courts in Canada on behalf of vehicle purchasers, lessors and dealers, alleging that the Company and certain of its competitors conspired to fix and raise prices for Occupant Safety Systems products. The Company intends to defend these cases vigorously. Management believes that the ultimate resolution of these cases will not have a material adverse effect on the Company's consolidated financial statements as a whole. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 27, 2013 | |
Basis of Presentation [Abstract] | |
Earnings (Losses) Per Share | Earnings Per Share. Basic earnings per share are calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share reflect the weighted average impact of all potentially dilutive securities from the date of issuance, including stock options, restricted stock units (“RSUs”) and stock-settled stock appreciation rights (“SSARs”). Further, if the inclusion of shares potentially issuable for the Company's 3.50% exchangeable senior unsecured notes (see Note 10) is more dilutive than the inclusion of the interest expense for those exchangeable notes, the Company utilizes the “if-converted” method to calculate diluted earnings per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense and amortization of the discount recognized on the exchangeable notes and includes the number of shares potentially issuable related to the exchangeable notes in the weighted average shares outstanding. |
If the average market price of the Company's common stock exceeds the exercise price of stock options outstanding or the fair value on the date of grant of the SSARs, the treasury stock method is used to determine the incremental number of shares to be included in the diluted earnings per share computation. | |
Warranties | Warranties. Product warranty liabilities are recorded based upon management estimates including such factors as the written agreement with the customer, the length of the warranty period, the historical performance of the product and likely changes in performance of newer products and the mix and volume of products sold. Product warranty liabilities are reviewed on a regular basis and adjusted to reflect actual experience. |
Recently Adopted Accounting Pronouncements | Recently Adopted and Issued Accounting Pronouncements. There were no new accounting pronouncements adopted or issued during the three month period ended September 27, 2013 that have had or are expected to have a material impact on the Company's financial statements. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Basis of Presentation [Abstract] | ||||||||||||||||||||||||||
Net Earnings (Losses) Attributable to TRW and the Weighted Average Shares Outstanding | Net earnings attributable to TRW and the weighted average shares outstanding used in calculating basic and diluted earnings per share were: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||
Net earnings attributable to TRW | $ | 197 | $ | 163 | $ | 607 | $ | 589 | ||||||||||||||||||
Interest expense on exchangeable notes, net of tax | 1 | 1 | 3 | 3 | ||||||||||||||||||||||
Amortization of discount on exchangeable notes, net of tax | 1 | 2 | 3 | 4 | ||||||||||||||||||||||
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $ | 199 | $ | 166 | $ | 613 | $ | 596 | ||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 117 | 122.1 | 118.5 | 122.8 | ||||||||||||||||||||||
Basic earnings per share | $ | 1.68 | $ | 1.33 | $ | 5.12 | $ | 4.8 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 117 | 122.1 | 118.5 | 122.8 | ||||||||||||||||||||||
Effect of dilutive stock options, RSUs and SSARs | 1.3 | 1.3 | 1.2 | 1.3 | ||||||||||||||||||||||
Shares applicable to exchangeable notes | 5.9 | 5.9 | 5.9 | 5.9 | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 124.2 | 129.3 | 125.6 | 130 | ||||||||||||||||||||||
Diluted earnings per share | $ | 1.6 | $ | 1.28 | $ | 4.88 | $ | 4.58 | ||||||||||||||||||
Movement in the Product Warranty Liability | The following table presents the movement in the product warranty liability for the periods indicated: | |||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
September 27, | September 28, | |||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance | $ | 140 | $ | 130 | ||||||||||||||||||||||
Current period accruals, net of changes in estimates | 44 | 41 | ||||||||||||||||||||||||
Used for purposes intended | -30 | -32 | ||||||||||||||||||||||||
Effects of foreign currency translation | -1 | -1 | ||||||||||||||||||||||||
Ending balance | $ | 153 | $ | 138 | ||||||||||||||||||||||
Changes in Equity, Including Changes in the Components of Comprehensive Earnings (Losses) (OCI) | Equity. The following tables present a rollforward of the changes in equity attributable to TRW shareholders and to the noncontrolling interest. | |||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 3,853 | $ | 3,654 | $ | 199 | $ | 3,466 | $ | 3,269 | $ | 197 | ||||||||||||||
Net earnings | 206 | 197 | 9 | 176 | 163 | 13 | ||||||||||||||||||||
Other comprehensive earnings | 81 | 78 | 3 | 128 | 125 | 3 | ||||||||||||||||||||
Dividends paid to noncontrolling interest | - | - | - | -19 | - | -19 | ||||||||||||||||||||
Changes related to share-based compensation | 19 | 19 | - | 7 | 7 | - | ||||||||||||||||||||
Repurchase of capital stock | -260 | -260 | - | - | - | - | ||||||||||||||||||||
Ending balance of equity | $ | 3,899 | $ | 3,688 | $ | 211 | $ | 3,758 | $ | 3,564 | $ | 194 | ||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 3,769 | $ | 3,578 | $ | 191 | $ | 3,139 | $ | 2,940 | $ | 199 | ||||||||||||||
Net earnings | 639 | 607 | 32 | 618 | 589 | 29 | ||||||||||||||||||||
Other comprehensive earnings (losses) | -80 | -83 | 3 | 121 | 121 | - | ||||||||||||||||||||
Dividends paid to noncontrolling interest | -15 | - | -15 | -34 | - | -34 | ||||||||||||||||||||
Changes related to share-based compensation | 46 | 46 | - | 16 | 16 | - | ||||||||||||||||||||
Repurchase of capital stock | -460 | -460 | - | -102 | -102 | - | ||||||||||||||||||||
Ending balance of equity | $ | 3,899 | $ | 3,688 | $ | 211 | $ | 3,758 | $ | 3,564 | $ | 194 | ||||||||||||||
Schedule Of Accumulated Other Comprehensive Income Loss | The following tables present changes in accumulated other comprehensive earnings (losses) attributable to TRW by component: | |||||||||||||||||||||||||
Three Months Ended September 27, 2013 | ||||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | -34 | $ | -577 | $ | -16 | $ | -627 | ||||||||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | 67 | -10 | 16 | 73 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 5(a) | - | 5 | ||||||||||||||||||||||
Other comprehensive earnings (losses), net of tax | 67 | -5 | 16 | 78 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 33 | $ | -582 | $ | - | $ | -549 | ||||||||||||||||||
(a) | Includes actuarial gains of $11 million, reduced by prior service cost of $4 million, net of tax of $2 million. | |||||||||||||||||||||||||
Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 83 | $ | -559 | $ | 10 | $ | -466 | ||||||||||||||||||
Other comprehensive losses before reclassifications, net of tax | -50 | -37 | -9 | -96 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 14(b) | -1 | 13 | ||||||||||||||||||||||
Other comprehensive losses, net of tax | -50 | -23 | -10 | -83 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 33 | $ | -582 | $ | - | $ | -549 | ||||||||||||||||||
(b) | Includes actuarial gains of $33 million, reduced by prior service cost of $13 million, net of tax of $6 million. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Inventories [Abstract] | |||||||||||
Major Classes of Inventory | 3. Inventories | ||||||||||
The major classes of inventory are as follows: | |||||||||||
As of | |||||||||||
September 27, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||
Finished products and work in process | $ | 509 | $ | 454 | |||||||
Raw materials and supplies | 556 | 521 | |||||||||
Total inventories | $ | 1,065 | $ | 975 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ||||||||||||||||||||||||||
Changes in Goodwill | The changes in goodwill for the period are as follows: | |||||||||||||||||||||||||
Occupant | ||||||||||||||||||||||||||
Chassis | Safety | Automotive | ||||||||||||||||||||||||
Systems | Systems | Electronics | Components | |||||||||||||||||||||||
Segment | Segment | Segment | Segment | Total | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 796 | $ | 537 | $ | 423 | $ | - | $ | 1,756 | ||||||||||||||||
Allocation of goodwill due to change in segment reporting | 275 | - | -275 | - | - | |||||||||||||||||||||
Effects of foreign currency translation | - | 2 | - | - | 2 | |||||||||||||||||||||
Balance as of September 27, 2013 | $ | 1,071 | $ | 539 | $ | 148 | $ | - | $ | 1,758 | ||||||||||||||||
Schedule of Intangible Assets by Major Class | Intangible assets | |||||||||||||||||||||||||
The following table reflects intangible assets and related accumulated amortization: | ||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
27-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | 67 | $ | -65 | $ | 2 | $ | 67 | $ | -58 | $ | 9 | ||||||||||||||
Developed technology and other intangible assets | 107 | -89 | 18 | 106 | -86 | 20 | ||||||||||||||||||||
Total | 174 | $ | -154 | 20 | 173 | $ | -144 | 29 | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | 264 | 264 | 264 | 264 | ||||||||||||||||||||||
Total | $ | 438 | $ | 284 | $ | 437 | $ | 293 | ||||||||||||||||||
Expected Amortization Expense | The Company expects that ongoing amortization expense will approximate the following: | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Remainder of 2013 | $ | 2 | ||||||||||||||||||||||||
Fiscal year 2014 | 2 | |||||||||||||||||||||||||
2015 and beyond | 16 | |||||||||||||||||||||||||
The expected amortization expense for 2015 and beyond primarily relates to land use rights. |
Other_Income_Expense_Net_Table
Other (Income) Expense - Net (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Other (Income) Expense - Net [Abstract] | |||||||||||||||||||
Other (Income) Expense - Net Disclosure Table | 5. Other (Income) Expense — Net | ||||||||||||||||||
The following table provides details of other (income) expense — net: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net provision for bad debts | $ | 2 | $ | 2 | $ | 4 | $ | 2 | |||||||||||
Net gains on sales of assets and divestitures | - | -3 | -1 | -6 | |||||||||||||||
Foreign currency losses | 13 | 5 | 19 | 3 | |||||||||||||||
Royalty and grant income | -7 | -1 | -13 | -7 | |||||||||||||||
Miscellaneous other income | -3 | -5 | -10 | -11 | |||||||||||||||
Other (income) expense — net | $ | 5 | $ | -2 | $ | -1 | $ | -19 |
Pension_Plans_and_Postretireme1
Pension Plans and Postretirement Benefits Other Than Pensions (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions | 7. Pension Plans and Postretirement Benefits Other Than Pensions | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide the components of net pension (income) cost for the Company’s defined benefit pension plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 6 | $ | 1 | $ | - | $ | 4 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 10 | 46 | 9 | 15 | 53 | 9 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -15 | -77 | -5 | -20 | -81 | -5 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 7 | - | 4 | 5 | - | 3 | |||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -1 | 2 | - | - | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | 3 | $ | -31 | $ | 13 | $ | 3 | $ | -28 | $ | 11 | |||||||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 2 | $ | - | $ | 17 | $ | 3 | $ | - | $ | 14 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 31 | 140 | 27 | 45 | 160 | 28 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -44 | -233 | -15 | -60 | -244 | -15 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 20 | - | 14 | 15 | - | 7 | |||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -1 | 2 | - | - | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | 9 | $ | -93 | $ | 42 | $ | 5 | $ | -84 | $ | 34 | |||||||||||||||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions ("OPEB") | |||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide the components of net OPEB (income) cost for the Company's plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service | $ | 1 | $ | - | $ | 1 | $ | -1 | |||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 3 | 1 | 4 | 2 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization | -3 | -1 | -6 | -1 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | -1 | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB income | $ | - | $ | - | $ | -1 | $ | - | |||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 1 | $ | - | |||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 10 | 3 | 12 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization | -10 | -3 | -16 | -4 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | -7 | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB (income) cost | $ | -6 | $ | - | $ | -3 | $ | - |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||
Fair Value Measurements for Assets and Liabilities | Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||||
The fair value measurements for assets and liabilities recognized in the Company’s consolidated balance sheets are as follows: | |||||||||||||||||||
As of | |||||||||||||||||||
27-Sep-13 | 31-Dec-12 | ||||||||||||||||||
Carrying | Fair | Measurement | Carrying | Fair | |||||||||||||||
Value | Value | Approach | Value | Value | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Foreign currency exchange contracts — current assets | $ | 13 | $ | 13 | Level 2 | $ | 16 | $ | 16 | ||||||||||
Foreign currency exchange contracts — noncurrent assets | 2 | 2 | Level 2 | 9 | 9 | ||||||||||||||
Short-term debt, fixed and floating rate | 111 | 111 | Level 2 | 67 | 67 | ||||||||||||||
Fixed rate long-term debt | 1,780 | 2,128 | Level 2 | 1,395 | 1,677 | ||||||||||||||
Foreign currency exchange contracts — current liability | 2 | 2 | Level 2 | - | - | ||||||||||||||
Interest rate swap contracts — noncurrent liability | - | - | Level 2 | 1 | 1 |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||||||||||
Offsetting Assets And Liabilites [Table Text Block] | Offsetting of Derivative Assets and Liabilities | |||||||||||||||||||||||||
The following table reflects the offsetting of derivative assets and liabilities: | ||||||||||||||||||||||||||
As of September 27, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Reported | Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Reported | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||||
Foreign Currency | $ | 34 | $ | -19 | $ | 15 | $ | 40 | $ | -15 | $ | 25 | ||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||
Interest Rate Contracts | - | - | - | 1 | - | 1 | ||||||||||||||||||||
Foreign Currency | 21 | -19 | 2 | 15 | -15 | - |
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Debt [Abstract] | ||||||||||||
Total Outstanding Debt | 10. Debt | |||||||||||
Total outstanding debt of the Company consisted of the following: | ||||||||||||
As of | ||||||||||||
September 27, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
(Dollars in millions) | ||||||||||||
Short-term debt | $ | 111 | $ | 67 | ||||||||
Long-term debt: | ||||||||||||
6.375% Senior notes, due 2014 | $ | 229 | $ | 224 | ||||||||
7.00% Senior notes, due 2014 | 233 | 309 | ||||||||||
7.25% Senior notes, due 2017 | 446 | 448 | ||||||||||
8.875% Senior notes, due 2017 | 205 | 219 | ||||||||||
4.50% Senior notes, due 2021 | 400 | - | ||||||||||
Exchangeable senior notes, due 2015 | 155 | 150 | ||||||||||
Revolving credit facility | - | - | ||||||||||
Capitalized leases | 18 | 13 | ||||||||||
Other borrowings | 94 | 32 | ||||||||||
Total long-term debt | 1,780 | 1,395 | ||||||||||
Less current portion | 470 | 26 | ||||||||||
Long-term debt, net of current portion | $ | 1,310 | $ | 1,369 |
Restructuring_Charges_and_Asse1
Restructuring Charges and Asset Impairments (Tables) | 9 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Restructuring Charges And Asset Impairments [Abstract] | |||||||||||
Movement of the Restructuring Reserves for Severance and Other Charges (but excludes reserves related to severance-related postemployment benefits) | Restructuring Reserves | ||||||||||
The following table illustrates the movement of the restructuring reserves for severance and other charges, including reserves related to severance-related postemployment benefits for both periods presented: | |||||||||||
Nine Months Ended | |||||||||||
September 27, | September 28, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in millions) | |||||||||||
Beginning balance | $ | 121 | $ | 59 | |||||||
Current period accruals, net of changes in estimates | 40 | 4 | |||||||||
Used for purposes intended | -64 | -17 | |||||||||
Effects of foreign currency translation | 3 | - | |||||||||
Ending balance | $ | 100 | $ | 46 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||
Share-Based Compensation [Abstract] | ||||||||||||||||||
Share-Based Compensation Expense by Type Table | Share-based compensation expense recognized for the Plan was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Stock options and SSARs | $ | 3 | $ | 1 | $ | 9 | $ | 4 | ||||||||||
RSUs | 6 | 4 | 21 | 12 | ||||||||||||||
Total share-based compensation expense | $ | 9 | $ | 5 | $ | 30 | $ | 16 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||
Schedule Of Segment Reporting Information By Segment Table [Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Sales to external customers: | |||||||||||||||||||
Chassis Systems | $ | 2,802 | $ | 2,615 | $ | 8,512 | $ | 8,045 | |||||||||||
Occupant Safety Systems | 785 | 770 | 2,485 | 2,504 | |||||||||||||||
Electronics | 172 | 154 | 518 | 502 | |||||||||||||||
Automotive Components | 453 | 426 | 1,424 | 1,361 | |||||||||||||||
Total sales to external customers | $ | 4,212 | $ | 3,965 | $ | 12,939 | $ | 12,412 | |||||||||||
Intersegment sales: | |||||||||||||||||||
Chassis Systems | $ | 4 | $ | 4 | $ | 12 | $ | 15 | |||||||||||
Occupant Safety Systems | 32 | 23 | 98 | 62 | |||||||||||||||
Electronics | 134 | 127 | 406 | 393 | |||||||||||||||
Automotive Components | 18 | 19 | 55 | 63 | |||||||||||||||
Total intersegment sales | $ | 188 | $ | 173 | $ | 571 | $ | 533 | |||||||||||
Total segment sales: | |||||||||||||||||||
Chassis Systems | $ | 2,806 | $ | 2,619 | $ | 8,524 | $ | 8,060 | |||||||||||
Occupant Safety Systems | 817 | 793 | 2,583 | 2,566 | |||||||||||||||
Electronics | 306 | 281 | 924 | 895 | |||||||||||||||
Automotive Components | 471 | 445 | 1,479 | 1,424 | |||||||||||||||
Total segment sales | $ | 4,400 | $ | 4,138 | $ | 13,510 | $ | 12,945 | |||||||||||
Earnings before taxes: | |||||||||||||||||||
Chassis Systems | $ | 188 | $ | 170 | $ | 600 | $ | 560 | |||||||||||
Occupant Safety Systems | 63 | 56 | 175 | 201 | |||||||||||||||
Electronics | 28 | 28 | 86 | 101 | |||||||||||||||
Automotive Components | 31 | 23 | 119 | 88 | |||||||||||||||
Segment earnings before taxes | 310 | 277 | 980 | 950 | |||||||||||||||
Corporate expense and other | -18 | -19 | -50 | -20 | |||||||||||||||
Financing costs | -33 | -26 | -97 | -82 | |||||||||||||||
Loss on retirement of debt — net | - | -1 | -5 | -6 | |||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 9 | 13 | 32 | 29 | |||||||||||||||
Earnings before income taxes | $ | 268 | $ | 244 | $ | 860 | $ | 871 | |||||||||||
See Note 11 for a summary of restructuring charges and asset impairments by segment. |
Description_of_Business_Detail
Description of Business (Detail) | 12 Months Ended |
Dec. 31, 2012 | |
Description of Business [Abstract] | |
Sales to major OEM | 86.00% |
Basis_of_Presentation_Net_Earn
Basis of Presentation - Net Earnings Attributable to TRW and the Weighted Average Shares Outstanding (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Earnings Per Share Disclosure [Line Items] | ||||
Net earnings attributable to TRW | $197 | $163 | $607 | $589 |
Interest expense on exchangeable notes, net of tax | 1 | 1 | 3 | 3 |
Amortization of discount on exchangeable notes, net of tax | 1 | 2 | 3 | 4 |
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $199 | $166 | $613 | $596 |
Basic: | ||||
Weighted average shares outstanding | 117 | 122.1 | 118.5 | 122.8 |
Basic earnings per share | $1.68 | $1.33 | $5.12 | $4.80 |
Diluted: | ||||
Weighted average shares outstanding | 117 | 122.1 | 118.5 | 122.8 |
Effect of dilutive stock options, RSUs and SSARs | 1.3 | 1.3 | 1.2 | 1.3 |
Shares applicable to exchangeable notes | 5.9 | 5.9 | 5.9 | 5.9 |
Diluted weighted average shares outstanding | 124.2 | 129.3 | 125.6 | 130 |
Diluted earnings per share | $1.60 | $1.28 | $4.88 | $4.58 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 29, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Basis of Presentation [Abstract] | ||||
Securites excluded from diluted earnings per share calculation | 0.4 | 2.2 | 1.6 | 2.2 |
Basis_of_Presentation_Movement
Basis of Presentation - Movement in the Product Warranty Liability (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Basis of Presentation [Abstract] | ||
Beginning balance | $140 | $130 |
Current period accruals, net of changes in estimates | 44 | 41 |
Used for purposes intended | -30 | -32 |
Effects of foreign currency translation | -1 | -1 |
Ending balance | $153 | $138 |
Basis_of_Presentation_Changes_
Basis of Presentation - Changes in Equity, Including Changes in the Components of Comprehensive Earnings (Losses) (OCI) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Stockholders Equity Note [Line Items] | ||||
Beginning balance of equity | $3,853 | $3,466 | $3,769 | $3,139 |
Net earnings | 206 | 176 | 639 | 618 |
Total other comprehensive earnings (losses) | 81 | 128 | -80 | 121 |
Dividends paid to noncontrolling interest | 0 | -19 | -15 | -34 |
Changes related to share-based compensation | 19 | 7 | 46 | 16 |
Value of capital stock repurchased | -260 | 0 | -460 | -102 |
Ending balance of equity | 3,899 | 3,758 | 3,899 | 3,758 |
Parent | ||||
Stockholders Equity Note [Line Items] | ||||
Beginning balance of equity | 3,654 | 3,269 | 3,578 | 2,940 |
Net earnings | 197 | 163 | 607 | 589 |
Total other comprehensive earnings (losses) | 78 | 125 | -83 | 121 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 |
Changes related to share-based compensation | 19 | 7 | 46 | 16 |
Value of capital stock repurchased | -260 | 0 | -460 | -102 |
Ending balance of equity | 3,688 | 3,564 | 3,688 | 3,564 |
Noncontrolling Interest | ||||
Stockholders Equity Note [Line Items] | ||||
Beginning balance of equity | 199 | 197 | 191 | 199 |
Net earnings | 9 | 13 | 32 | 29 |
Total other comprehensive earnings (losses) | 3 | 3 | 3 | 0 |
Dividends paid to noncontrolling interest | 0 | -19 | -15 | -34 |
Changes related to share-based compensation | 0 | 0 | 0 | 0 |
Value of capital stock repurchased | 0 | 0 | 0 | 0 |
Ending balance of equity | $211 | $194 | $211 | $194 |
Basis_of_Presentation_Changes_1
Basis of Presentation- Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Dec. 31, 2012 |
Basis of Presentation [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $0 | $0 | ($16) | $10 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -582 | -582 | -577 | -559 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 33 | 33 | -34 | 83 |
Total Accumulated other comprehensive earnings (losses) | -549 | -549 | -627 | -466 |
OCI before reclassifications, cash flow hedges | 16 | -9 | ||
OCI before reclassifications, retirement obligations | -10 | -37 | ||
OCI before reclassifications, foreign currency translation | 67 | -50 | ||
OCI before reclassifications, total | 73 | -96 | ||
Amounts reclassified from AOCI, cash flow hedges | 0 | -1 | ||
Amounts reclassified from AOCI, retirement obligations | 5 | 14 | ||
Amounts reclassified from AOCI, total | 5 | 13 | ||
Current period OCI, cash flow hedges | 16 | -10 | ||
Current period OCI, Retirement obligations | -5 | -23 | ||
Current Period OCI, foreign currency translation | 67 | -50 | ||
Current period OCI, total | 78 | -83 | ||
Actuarial gains or losses reclassified from AOCI | 11 | 33 | ||
Prior service costs reclassified from AOCI | 4 | 13 | ||
Tax amount of retirement obligations reclassified from AOCI | $2 | $6 |
Inventories_Detail
Inventories (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ||
Finished products and work in process | $509 | $454 |
Raw materials and supplies | 556 | 521 |
Total inventories | $1,065 | $975 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ||
Beginning Balance | $1,756 | |
Allocation of goodwill due to change in segment reporting | 0 | |
Effects of foreign currency translation | 2 | |
Ending Balance | 1,758 | 1,756 |
Chassis Systems [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 796 | |
Allocation of goodwill due to change in segment reporting | 275 | |
Effects of foreign currency translation | 0 | |
Ending Balance | 1,071 | 796 |
Occupant Safety Systems [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 537 | |
Allocation of goodwill due to change in segment reporting | 0 | |
Effects of foreign currency translation | 2 | |
Ending Balance | 539 | 537 |
Electronics [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 423 | |
Allocation of goodwill due to change in segment reporting | -275 | |
Effects of foreign currency translation | 0 | |
Ending Balance | 148 | 423 |
Automotive Components [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 0 | |
Allocation of goodwill due to change in segment reporting | 0 | |
Effects of foreign currency translation | 0 | |
Ending Balance | $0 | $0 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets and Related Accumulated Amortization (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $438 | $437 |
Net Carrying Amount | 284 | 293 |
Finite lived intangible asset | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 174 | 173 |
Accumulated Amortization | -154 | -144 |
Net Carrying Amount | 20 | 29 |
Trademarks | Indefinite lived intangible asset member | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 264 | 264 |
Net Carrying Amount | 264 | 264 |
Customer Relationships | Finite lived intangible asset | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 67 | 67 |
Accumulated Amortization | -65 | -58 |
Net Carrying Amount | 2 | 9 |
Developed Technology And Other Intangible Assets [Member] | Finite lived intangible asset | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 107 | 106 |
Accumulated Amortization | -89 | -86 |
Net Carrying Amount | $18 | $20 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Expected Amortization Expense (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Goodwill and Intangible Assets [Abstract] | |
Remainder of 2013 | $2 |
Fiscal year 2014 | 2 |
2015 and beyond | $16 |
Other_Income_Expense_Net_Detai
Other (Income) Expense - Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Other (Income) Expense - Net [Abstract] | ||||
Net provision for bad debts | $2 | $2 | $4 | $2 |
Net gain on sales of assets and divestitures | 0 | -3 | -1 | -6 |
Foreign currency exchange (gains) losses | 13 | 5 | 19 | 3 |
Royalty and grant income | -7 | -1 | -13 | -7 |
Miscellaneous other (income) expense | -3 | -5 | -10 | -11 |
Other (income) expense - net | $5 | ($2) | ($1) | ($19) |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Jul. 17, 2013 | Jul. 17, 2013 | Jul. 17, 2013 |
Net of discrete tax items [Member] | United Kingdom [Member] | United Kingdom [Member] | United Kingdom [Member] | United Kingdom [Member] | United Kingdom [Member] | United Kingdom [Member] | United Kingdom [Member] | |||||
Effective prior to April 1 2014 [Member] | Effective April 1 2014 [Member] | Effective April 1 2015 [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||||
Income tax expense | $62 | $68 | $221 | $253 | ||||||||
Earnings before income taxes | 268 | 244 | 860 | 871 | ||||||||
Income tax expense (benefit), tax adjustments, settlements, and unusual provisions | 4 | |||||||||||
Tax benefit related to enactment of tax legislation | ($12) | ($26) | ($18) | ($9) | ($18) | ($9) | ||||||
Corporate income tax rate | 23.00% | 21.00% | 20.00% |
Pension_Plans_and_Postretireme2
Pension Plans and Postretirement Benefits Other Than Pensions - Components of Net Pension (Income) Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Pension Plans - U.S. | ||||
Pension Plan [Line Items] | ||||
Service cost | $1 | $1 | $2 | $3 |
Interest cost on projected benefit obligations | 10 | 15 | 31 | 45 |
Expected return on plan assets | -15 | -20 | -44 | -60 |
Amortization | 7 | 5 | 20 | 15 |
Settlements | 0 | 2 | 0 | 2 |
Defined benefit plan, net (income) cost | 3 | 3 | 9 | 5 |
United Kingdom Foreign Pension Plans Defined Benefit [Member] | ||||
Pension Plan [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost on projected benefit obligations | 46 | 53 | 140 | 160 |
Expected return on plan assets | -77 | -81 | -233 | -244 |
Amortization | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Defined benefit plan, net (income) cost | -31 | -28 | -93 | -84 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | ||||
Pension Plan [Line Items] | ||||
Service cost | 6 | 4 | 17 | 14 |
Interest cost on projected benefit obligations | 9 | 9 | 27 | 28 |
Expected return on plan assets | -5 | -5 | -15 | -15 |
Amortization | 4 | 3 | 14 | 7 |
Settlements | -1 | 0 | -1 | 0 |
Defined benefit plan, net (income) cost | $13 | $11 | $42 | $34 |
Pension_Plans_and_Postretireme3
Pension Plans and Postretirement Benefits Other Than Pensions - Components of Net OPEB (Income) Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Postretirement Benefits Other than Pension - U.S. | ||||
Pension Plan [Line Items] | ||||
Service cost | $1 | $1 | $1 | $1 |
Interest cost on projected benefit obligations | 3 | 4 | 10 | 12 |
Amortization | -3 | -6 | -10 | -16 |
Settlements | -1 | 0 | -7 | 0 |
Defined benefit plan, net (income) cost | 0 | -1 | -6 | -3 |
Postretirement Benefits Other than Pension - Rest of World | ||||
Pension Plan [Line Items] | ||||
Service cost | 0 | -1 | 0 | 0 |
Interest cost on projected benefit obligations | 1 | 2 | 3 | 4 |
Amortization | -1 | -1 | -3 | -4 |
Settlements | 0 | 0 | 0 | 0 |
Defined benefit plan, net (income) cost | $0 | $0 | $0 | $0 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt | $111 | $67 |
Carrying (Reported) Amount, Fair Value Disclosure | Floating Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Carrying (Reported) Amount, Fair Value Disclosure | Fixed Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 1,780 | 1,395 |
Carrying (Reported) Amount, Fair Value Disclosure | Fixed And Floating Rate Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt | 111 | 67 |
Carrying (Reported) Amount, Fair Value Disclosure | Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 13 | 16 |
Carrying (Reported) Amount, Fair Value Disclosure | Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 2 | 9 |
Carrying (Reported) Amount, Fair Value Disclosure | Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts liabilities | 2 | 0 |
Carrying (Reported) Amount, Fair Value Disclosure | Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts liabilities | 0 | 0 |
Portion at Fair Value, Fair Value Disclosure | Floating Rate [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Portion at Fair Value, Fair Value Disclosure | Fixed Rate [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 2,128 | 1,677 |
Portion at Fair Value, Fair Value Disclosure | Fixed And Floating Rate Debt [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt | 111 | 67 |
Portion at Fair Value, Fair Value Disclosure | Current Assets [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 13 | 16 |
Portion at Fair Value, Fair Value Disclosure | Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 2 | 9 |
Portion at Fair Value, Fair Value Disclosure | Current Liabilities [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts liabilities | 2 | 0 |
Portion at Fair Value, Fair Value Disclosure | Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts liabilities | 0 | 0 |
Interest Rate Swap | Carrying (Reported) Amount, Fair Value Disclosure | Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 1 |
Interest Rate Swap | Portion at Fair Value, Fair Value Disclosure | Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 1 |
Commodity Contract | Carrying (Reported) Amount, Fair Value Disclosure | Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Commodity Contract | Portion at Fair Value, Fair Value Disclosure | Current Liabilities [Member] | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Fixed Rate [Member], USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Fixed Rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unamortized discount | $18 |
Financial_Instruments_Detail
Financial Instruments (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Interest Rate Swap | Foreign Exchange Contract | Foreign Exchange Contract | Interest Rate Contract | Interest Rate Contract | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | ||
Other Income And Expense [Member] | Other Income And Expense [Member] | Other Income And Expense [Member] | Other Income And Expense [Member] | contract | |||||||||||
Derivative [Line Items] | |||||||||||||||
Number of agreements | 2 | ||||||||||||||
Notional value | $25 | $2,400 | |||||||||||||
Fair values of derivative instruments, asset | 34 | 40 | 34 | 40 | |||||||||||
Fair values of derivative instruments, liability | 21 | 16 | 21 | 15 | 0 | 1 | |||||||||
Gains included in OCI expected to be reclassified into earnings in the next twelve months, net of tax | 2 | ||||||||||||||
Effective portion of the gain (loss) on derivatives designated as cash flow hedges that was recognized in OCI | 22 | 47 | -11 | 82 | |||||||||||
Effective portion of gain (loss) on hedges reclassified from OCI into the statements of earnings | 0 | 2 | 1 | 1 | |||||||||||
Gain (loss) recognized in current earnings | $0 | $5 | ($3) | $15 |
Financial_Instruments_Offsetti
Financial Instruments - Offsetting of Derivative Assets and Liabilities (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Line Items] | ||
Derivative assets, gross amount recognized | $34 | $40 |
Derivative liabilities, gross amounts recognized | 21 | 16 |
Foreign Exchange Contract | ||
Offsetting Assets [Line Items] | ||
Derivative assets, gross amount recognized | 34 | 40 |
Derivative assets, gross amounts offset | -19 | -15 |
Derivative asets, net amounts reported | 15 | 25 |
Derivative liabilities, gross amounts recognized | 21 | 15 |
Derivative liabilities, gross amounts offset | -19 | -15 |
Derivative liabilities, net amounts reported | 2 | 0 |
Interest Rate Contract | ||
Offsetting Assets [Line Items] | ||
Derivative liabilities, gross amounts recognized | 0 | 1 |
Derivative liabilities, gross amounts offset | 0 | 0 |
Derivative liabilities, net amounts reported | $0 | $1 |
Debt_Total_Outstanding_Debt_De
Debt - Total Outstanding Debt (Detail) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Line Items] | ||
Short-term debt | $111 | $67 |
Long-term debt: | ||
Exchangeable senior notes, due 2015 | 155 | 150 |
Revolving Credit Facility | 0 | 0 |
Capitalized leases | 18 | 13 |
Other borrowings | 94 | 32 |
Total long-term debt | 1,780 | 1,395 |
Less current portion | 470 | 26 |
Long-term debt, net of current portion | 1,310 | 1,369 |
Senior Notes 6.375% Due 2014 [Member] | ||
Long-term debt: | ||
Senior Notes | 229 | 224 |
Senior Notes 8.875% Due 2017 [Member] | ||
Long-term debt: | ||
Senior Notes | 205 | 219 |
Senior Notes 4.50% Due 2021 [Member] | ||
Long-term debt: | ||
Senior Notes | 400 | 0 |
Senior Notes 7.00% Due 2014 [Member] | ||
Long-term debt: | ||
Senior Notes | 233 | 309 |
Senior Notes 7.25% Due 2017 [Member] | ||
Long-term debt: | ||
Senior Notes | $446 | $448 |
Debt_Senior_Notes_Detail
Debt - Senior Notes (Detail) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Nov. 30, 2009 | Nov. 30, 2009 | Nov. 30, 2009 | Nov. 30, 2009 | Mar. 31, 2007 | Mar. 31, 2007 | Mar. 31, 2007 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Feb. 28, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Senior Unsecured Notes Eight Point Eight Seven Five Percent Due Twenty Seventeen [Member] | Senior Unsecured Notes Eight Point Eight Seven Five Percent Due Twenty Seventeen [Member] | Senior Unsecured Notes Eight Point Eight Seven Five Percent Due Twenty Seventeen [Member] | Senior Unsecured Notes Eight Point Eight Seven Five Percent Due Twenty Seventeen [Member] | Senior Unsecured Notes Seven Percent Due Twenty Fourteen [Member] | Senior Unsecured Notes Six Point Three Seven Five Percent Due Twenty Fourteen [Member] | Senior Unsecured Notes Seven Point Two Five Percent Due Twenty Seventeen [Member] | Senior note | Senior note | Senior note | Senior note | Senior Unsecured Notes Four Point Five Percent Due Twenty Twenty One [Member] | |
USD ($) | Debt Instrument, Redemption, 2013 [Member] | Debt Instrument, Redemption, 2014 [Member] | Debt Instrument, Redemption, 2015 [Member] | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Debt Disclosure [Line Items] | ||||||||||||||||
Face amount | $250 | $500 | € 275 | $600 | $400 | |||||||||||
Interest rate | 8.88% | 7.00% | 6.38% | 7.25% | 4.50% | |||||||||||
Amount of debt repurchased | 0 | 0 | 91 | 48 | ||||||||||||
Loss on retirement of debt - net | 0 | 1 | 5 | 6 | 0 | 0 | 5 | 5 | ||||||||
Proceeds from issuance of long-term debt, net of fees | $484 | $2 | $394 | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 104.44% | 102.22% | 100.00% |
Debt_Exchangable_Senior_Notes_
Debt - Exchangable Senior Notes (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Nov. 30, 2009 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 29, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 |
Debt Disclosure [Line Items] | |||||||
Exchangeable notes sales price condition percentage | 130.00% | ||||||
Exchangeable Senior Unsecured Notes Three Point Five Percent Due Twenty Fifteen [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Face amount | $259 | ||||||
Interest rate | 3.50% | ||||||
Exchange rate of shares of the Company's common stock per $1,000 principal amount of notes | 33.8392 | ||||||
Debt conversion price per share of common stock | $29.55 | ||||||
Effective yield | 9.00% | ||||||
Debt discount | 18 | 18 | 24 | ||||
Interest expense recognized | 3 | 4 | 10 | 10 | |||
Interest expense on exchangeable notes, excluding amortization | 2 | 2 | 5 | 5 | |||
Exchangeable Senior Notes principal amount exchanged for shares of company stock | $26 | ||||||
Number of shares of Company stock issued in exchange for notes being converted | 879,982 |
Debt_Senior_Secured_Credit_Fac
Debt - Senior Secured Credit Facilities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Debt Disclosure [Line Items] | ||||
Revolving credit facility, facility size | $1,400,000,000 | $1,400,000,000 | ||
Fees paid to refinance credit facility | 0 | 9,000,000 | ||
Loss on retirement of debt - net | $0 | ($1,000,000) | ($5,000,000) | ($6,000,000) |
Commitment fee | 0.30% | |||
Euro Denominated [Member] | ||||
Debt Disclosure [Line Items] | ||||
Applicable margin | 1.75% | 1.75% | ||
Base Rate [Member] | ||||
Debt Disclosure [Line Items] | ||||
Applicable margin | 0.75% | 0.75% |
Restructuring_Charges_and_Asse2
Restructuring Charges and Asset Impairments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges | $5 | $3 | $43 | $7 | ||
Restructuring reserve | 100 | 46 | 100 | 46 | 121 | 59 |
Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring payments expected to be made in the remainder of 2013 | 45 | 45 | ||||
Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring payments expected to be made in the remainder of 2013 | 40 | 40 | ||||
Chassis Systems [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges | 17 | 2 | ||||
Asset impairments related to restructuring activities | 2 | 2 | ||||
Other asset impairments | 3 | 3 | ||||
Occupant Safety Systems [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges | 2 | 29 | ||||
Automotive Components [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges | $1 | ($6) | $3 |
Restructuring_Charges_and_Asse3
Restructuring Charges and Asset Impairments - Movement of the Restructuring Reserves for Severance and Other Charges (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Restructuring Charges And Asset Impairments [Abstract] | ||
Beginning balance | $121 | $59 |
Current period accruals, net of changes in estimates | 40 | 4 |
Used for purposes intended, restructuring | 64 | 17 |
Effects of foreign currency translation and transfers | 3 | 0 |
Ending balance | $100 | $46 |
Capital_Stock_Detail
Capital Stock (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | ||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2013 | Oct. 01, 2012 | Dec. 31, 2013 | Sep. 27, 2013 | Jul. 31, 2013 | Jun. 28, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | |
Exchangeable Senior Unsecured Notes Three Point Five Percent Due Twenty Fifteen [Member] | Share Repurchase Program [Member] | Share Repurchase Program [Member] | Anti Dilution Program [Member] | ASR May 2013 [Member] | ASR May 2013 [Member] | ASR September 2013 [Member] | Series A junior participating preferred stock | |||||
Stockholders Equity Note [Line Items] | ||||||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||||||||||
Common stock, par value | $0.01 | $0.01 | ||||||||||
Common stock, shares outstanding | 114,452,986 | 114,452,986 | ||||||||||
Treasury stock, shares | 4,668 | 4,668 | ||||||||||
Preferred stock, shares authorized | 250,000,000 | 250,000,000 | 500,000 | |||||||||
Preferred stock, par value | $0.01 | $0.01 | ||||||||||
Preferred stock, shares issued | 0 | |||||||||||
Preferred stock, shares outstanding | 0 | |||||||||||
Number of shares repurchased | 3,525,988 | 6,476,816 | 1,500,000 | 205,965 | 1,700,000 | 1,400,000 | ||||||
Average cost of shares repurchased | $64.98 | |||||||||||
Value of capital stock repurchased | $260,000,000 | $0 | $460,000,000 | $102,000,000 | $125,000,000 | $125,000,000 | ||||||
Stock repurchase program authorized amount | 1,000,000,000 | 2,000,000,000 | ||||||||||
Number of shares of Company stock issued in exchange for notes being converted | 879,982 | |||||||||||
Exchangeable Senior Notes principal amount exchanged for shares of company stock | $26,000,000 |
ShareBased_Compensation_Detail
Share-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 2 Months Ended | 3 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 2 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Feb. 22, 2013 | Sep. 27, 2013 | Feb. 22, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Feb. 22, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Mar. 30, 2012 |
Stock-Settled Stock Appreciation Rights (SSARs) | Stock-Settled Stock Appreciation Rights (SSARs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Phantom Stock Units [Member] | Phantom Stock Units [Member] | Restricted Stock Units And Phantom Stock Units [Member] | Stock Option | Stock Option | Incentive Compensation Cash Award [Member] | Incentive Compensation Cash Award [Member] | Incentive Compensation Cash Award [Member] | Incentive Compensation Cash Award [Member] | Incentive Compensation Cash Award [Member] | Incentive Compensation Cash Award [Member] | Incentive Compensation Cash Award [Member] | Incentive Compensation Cash Award 2011 [Member] | Incentive Compensation Cash Award 2011 [Member] | Incentive Compensation Cash Award 2011 [Member] | Incentive Compensation Cash Award 2009 [Member] | |||||
Most Of Stock Options [Member] | number | number | Estimate of Fair Value, Fair Value Disclosure | Estimate of Fair Value, Fair Value Disclosure | Minimum | Maximum | |||||||||||||||||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||||||||||||||||||||||||
Common stock available for issuance under the Plan | 4,541,450 | 4,541,450 | |||||||||||||||||||||||||
Share based compensation expense | $9 | $5 | $30 | $16 | $6 | $4 | $21 | $12 | $0 | $1 | $1 | $4 | |||||||||||||||
Number of tranches | 3 | 3 | |||||||||||||||||||||||||
Equity instruments other than options granted | 1,199,551 | 428,169 | 4,400 | ||||||||||||||||||||||||
Equity instruments other than options grant date fair market value | $58.20 | ||||||||||||||||||||||||||
Equity instruments other than options granted - exercise price | $110 | ||||||||||||||||||||||||||
Equity instruments other than options nonvested and outstanding | 812,977 | 812,977 | 15,300 | ||||||||||||||||||||||||
Equity instruments other than options outstanding | 3,133,453 | ||||||||||||||||||||||||||
Contractual term | 8 years | 8 years | |||||||||||||||||||||||||
Vesting period | 3 years | 3 years | 3 years | ||||||||||||||||||||||||
Options outstanding | 475,664 | ||||||||||||||||||||||||||
Target aggregate value | 1 | 0 | 1.2 | ||||||||||||||||||||||||
Cash awards liability | 1 | 1 | 1 | 1 | 3 | ||||||||||||||||||||||
Payment of cash awards | $40 |
ShareBased_Compensation_Expens
Share-Based Compensation - Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Share based compensation expense | $9 | $5 | $30 | $16 |
Employee Stock Options And Stock Settled Stock Appreciation Rights (Ssars) [Member] | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Share based compensation expense | 3 | 1 | 9 | 4 |
Restricted Stock Units (RSUs) | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Share based compensation expense | $6 | $4 | $21 | $12 |
Related_Party_Transactions_Det
Related Party Transactions (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Aug. 31, 2013 | Feb. 28, 2013 |
Related Party Transactions [Abstract] | |||
Common Stock Sold In Registered Public Offering | 10.9 | 10 | |
AI LLC's Ownership Interest in TRW Automotive | 0.00% | ||
Expense Incurred In Connection With Secondary Offerings | $1 |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Segment Reporting Information [Line Items] | ||||
Sales | $4,212 | $3,965 | $12,939 | $12,412 |
Intersegment and Segment Sales | 4,400 | 4,138 | 13,510 | 12,945 |
Financing costs | -33 | -26 | -97 | -82 |
Loss on retirement of debt - net | 0 | -1 | -5 | -6 |
Net earnings attributable to noncontrolling interest, net of tax | 9 | 13 | 32 | 29 |
Earnings before income taxes | 268 | 244 | 860 | 871 |
Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment and Segment Sales | 188 | 173 | 571 | 533 |
Chassis Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,802 | 2,615 | 8,512 | 8,045 |
Intersegment and Segment Sales | 2,806 | 2,619 | 8,524 | 8,060 |
Segment earnings before taxes | 188 | 170 | 600 | 560 |
Chassis Systems [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment and Segment Sales | 4 | 4 | 12 | 15 |
Occupant Safety Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 785 | 770 | 2,485 | 2,504 |
Intersegment and Segment Sales | 817 | 793 | 2,583 | 2,566 |
Segment earnings before taxes | 63 | 56 | 175 | 201 |
Occupant Safety Systems [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment and Segment Sales | 32 | 23 | 98 | 62 |
Electronics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 172 | 154 | 518 | 502 |
Intersegment and Segment Sales | 306 | 281 | 924 | 895 |
Segment earnings before taxes | 28 | 28 | 86 | 101 |
Electronics [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment and Segment Sales | 134 | 127 | 406 | 393 |
Automotive Components [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 453 | 426 | 1,424 | 1,361 |
Intersegment and Segment Sales | 471 | 445 | 1,479 | 1,424 |
Segment earnings before taxes | 31 | 23 | 119 | 88 |
Automotive Components [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment and Segment Sales | 18 | 19 | 55 | 63 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment earnings before taxes | 310 | 277 | 980 | 950 |
Corporate expense and other | ||||
Segment Reporting Information [Line Items] | ||||
Earnings before income taxes | ($18) | ($19) | ($50) | ($20) |
Contingencies_Detail
Contingencies (Detail) (USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Contingencies [Abstract] | |
Reserves for environmental matters | $69 |
Northrop indemnification percentage | 50.00% |