Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 27, 2014 | Jul. 23, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Central Index Key | '0001267097 | ' |
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 | ' | 111,237,505 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Consolidated Statements of Earnings (Unaudited) | ' | ' | ' | ' |
Sales | $4,593 | $4,514 | $9,035 | $8,727 |
Cost of sales | 4,026 | 3,983 | 7,968 | 7,769 |
Gross profit | 567 | 531 | 1,067 | 958 |
Administrative and selling expenses | 169 | 147 | 335 | 288 |
Restructuring charges and asset impairments | 6 | 1 | 26 | 38 |
Other (income) expense - net | 9 | -2 | 15 | -6 |
Operating income | 383 | 385 | 691 | 638 |
Interest expense - net | 26 | 34 | 57 | 64 |
Loss on retirement of debt - net | 0 | 5 | 0 | 5 |
Equity in earnings of affiliates, net of tax | -10 | -11 | -20 | -23 |
Earnings before income taxes | 367 | 357 | 654 | 592 |
Income tax expense | 92 | 97 | 170 | 159 |
Net earnings | 275 | 260 | 484 | 433 |
Less: Net earnings attributable to noncontrolling interest, net of tax | 10 | 12 | 20 | 23 |
Net earnings attributable to TRW | $265 | $248 | $464 | $410 |
Basic earnings per share: | ' | ' | ' | ' |
Earnings per share | $2.39 | $2.09 | $4.14 | $3.44 |
Weighted average shares outstanding | 110.8 | 118.9 | 112 | 119.2 |
Diluted earnings per share: | ' | ' | ' | ' |
Earnings per share | $2.27 | $1.99 | $3.95 | $3.28 |
Weighted average shares outstanding | 117.4 | 125.8 | 118.6 | 126.3 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Earnings (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Consolidated Statements of Comprehensive Earnings (Unaudited) | ' | ' | ' | ' |
Net earnings | $275 | $260 | $484 | $433 |
Other comprehensive earnings (losses): | ' | ' | ' | ' |
Foreign currency translation | 33 | -30 | 33 | -117 |
Retirement obligations, net of tax | -4 | -33 | -1 | -18 |
Deferred cash flow hedges, net of tax | 24 | -24 | 24 | -26 |
Total other comprehensive earnings (losses) | 53 | -87 | 56 | -161 |
Comprehensive earnings | 328 | 173 | 540 | 272 |
Less: Comprehensive earnings attributable to noncontrolling interest | 8 | 13 | 16 | 23 |
Comprehensive earnings attributable to TRW | $320 | $160 | $524 | $249 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $931 | $1,729 |
Accounts receivable - net | 3,078 | 2,478 |
Inventories | 1,119 | 1,019 |
Prepaid expenses and other current assets | 473 | 402 |
Total current assets | 5,601 | 5,628 |
Property, plant and equipment - net of accumulated depreciation of $4,603 and $4,420, respectively | 2,734 | 2,718 |
Goodwill | 1,759 | 1,760 |
Intangible Assets Net Excluding Goodwill | 289 | 292 |
Pension assets | 1,189 | 1,059 |
Other assets | 861 | 795 |
Total assets | 12,433 | 12,252 |
Current liabilities: | ' | ' |
Short-term debt | 406 | 159 |
Current portion of long-term debt | 37 | 482 |
Trade accounts payable | 2,729 | 2,597 |
Accrued compensation | 277 | 285 |
Other current liabilities | 1,308 | 1,232 |
Total current liabilities | 4,757 | 4,755 |
Long-term debt | 1,449 | 1,473 |
Postretirement benefits other than pensions | 369 | 375 |
Pension benefits | 654 | 676 |
Other long-term liabilities | 665 | 577 |
Total liabilities | 7,894 | 7,856 |
Stockholders' equity: | ' | ' |
Capital stock | 1 | 1 |
Paid-in-capital | 1,641 | 1,715 |
Retained earnings | 3,002 | 2,858 |
Accumulated other comprehensive earnings (losses) | -320 | -380 |
Total TRW stockholders' equity | 4,324 | 4,194 |
Noncontrolling interest | 215 | 202 |
Total equity | 4,539 | 4,396 |
Total liabilities and equity | $12,433 | $12,252 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Condensed Consolidated Balance Sheets (Unaudited) | ' | ' |
Accumulated depreciation on Property, plant and equipment | $4,603 | $4,420 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 |
Operating Activities | ' | ' |
Net earnings | $484 | $433 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 220 | 212 |
Net pension and other postretirement benefits income and contributions | -112 | -138 |
Loss on retirement of debt - net | 0 | 5 |
Asset Impairment Restructuring Charges | 12 | 0 |
Deferred income taxes | 76 | 82 |
Other - net | 8 | 25 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable - net | -619 | -723 |
Inventories | -103 | -49 |
Trade accounts payable | 148 | 216 |
Prepaid expenses and other assets | -117 | -22 |
Other liabilities | 77 | 52 |
Net cash provided by (used in) operating activities | 74 | 93 |
Investing Activities | ' | ' |
Capital expenditures, including other intangible assets | -236 | -271 |
Investment in non-consolidated joint venture assets | -6 | 0 |
Net cash provided by (used in) investing activities | -242 | -271 |
Financing Activities | ' | ' |
Change in short-term debt | 251 | 20 |
Proceeds from issuance of long-term debt, net of fees | 0 | 482 |
Redemption of long-term debt | -475 | -120 |
Proceeds from exercise of stock options | 2 | 19 |
Payments for repurchase of capital stock | -400 | -200 |
Dividends paid to noncontrolling interest | -3 | -15 |
Net cash provided by (used in) financing activities | -625 | 186 |
Effect of exchange rate changes on cash | -5 | -17 |
Increase (decrease) in cash and cash equivalents | -798 | -9 |
Cash and cash equivalents at beginning of period | 1,729 | 1,223 |
Cash and cash equivalents at end of period | $931 | $1,214 |
Description_of_Business
Description of Business | 6 Months Ended |
Jun. 27, 2014 | |
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 and systems. Active safety related products and systems principally refer to vehicle dynamic controls (primarily braking and steering), and passive safety related products and systems principally refer to occupant restraints (primarily airbags and seat belts) and safety electronics (primarily electronic control units and crash and occupant weight sensors). The Company is primarily a “Tier 1” supplier (a supplier that sells to OEMs). In 2013, approximately 83% of the Company's end-customer sales were to major OEMs. |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |||||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||||
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, 2013, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 14, 2014. | ||||||||||||||||||||||||||
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 six months ended June 27, 2014 are not necessarily indicative of results that may be expected for the year ending December 31, 2014. | ||||||||||||||||||||||||||
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”), stock-settled stock appreciation rights (“SSARs”) and performance stock units (“Performance Units”). 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 | Six Months Ended | |||||||||||||||||||||||||
June 27, | June 28, | June 27, | June 28, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||
Net earnings attributable to TRW | $ | 265 | $ | 248 | $ | 464 | $ | 410 | ||||||||||||||||||
Interest expense on exchangeable notes, net of tax | 1 | 1 | 2 | 2 | ||||||||||||||||||||||
Amortization of discount on exchangeable notes, net of tax | 1 | 1 | 2 | 2 | ||||||||||||||||||||||
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $ | 267 | $ | 250 | $ | 468 | $ | 414 | ||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 110.8 | 118.9 | 112 | 119.2 | ||||||||||||||||||||||
Basic earnings per share | $ | 2.39 | $ | 2.09 | $ | 4.14 | $ | 3.44 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 110.8 | 118.9 | 112 | 119.2 | ||||||||||||||||||||||
Effect of dilutive stock options, RSUs and SSARs | 1.6 | 1 | 1.6 | 1.2 | ||||||||||||||||||||||
Shares applicable to exchangeable notes | 5 | 5.9 | 5 | 5.9 | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 117.4 | 125.8 | 118.6 | 126.3 | ||||||||||||||||||||||
Diluted earnings per share | $ | 2.27 | $ | 1.99 | $ | 3.95 | $ | 3.28 | ||||||||||||||||||
For both the three and six months ended June 27, 2014, approximately 1 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. | ||||||||||||||||||||||||||
For both the three and six months ended June 28, 2013, approximately 1.6 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-Jun-14 | 28-Jun-13 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 4,198 | $ | 3,991 | $ | 207 | $ | 3,870 | $ | 3,671 | $ | 199 | ||||||||||||||
Net earnings | 275 | 265 | 10 | 260 | 248 | 12 | ||||||||||||||||||||
Other comprehensive earnings (losses) | 53 | 55 | -2 | -87 | -88 | 1 | ||||||||||||||||||||
Dividends paid to noncontrolling interest | - | - | - | -13 | - | -13 | ||||||||||||||||||||
Changes related to share-based compensation | 13 | 13 | - | 13 | 13 | - | ||||||||||||||||||||
Repurchase of capital stock | - | - | - | -190 | -190 | - | ||||||||||||||||||||
Ending balance of equity | $ | 4,539 | $ | 4,324 | $ | 215 | $ | 3,853 | $ | 3,654 | $ | 199 | ||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 4,396 | $ | 4,194 | $ | 202 | $ | 3,769 | $ | 3,578 | $ | 191 | ||||||||||||||
Net earnings | 484 | 464 | 20 | 433 | 410 | 23 | ||||||||||||||||||||
Other comprehensive earnings (losses) | 56 | 60 | -4 | -161 | -161 | - | ||||||||||||||||||||
Dividends paid to noncontrolling interest | -3 | - | -3 | -15 | - | -15 | ||||||||||||||||||||
Changes related to share-based compensation | 6 | 6 | - | 27 | 27 | - | ||||||||||||||||||||
Repurchase of capital stock | -400 | -400 | - | -200 | -200 | - | ||||||||||||||||||||
Ending balance of equity | $ | 4,539 | $ | 4,324 | $ | 215 | $ | 3,853 | $ | 3,654 | $ | 199 | ||||||||||||||
The following tables present changes in accumulated other comprehensive earnings (losses) attributable to TRW by component: | ||||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
For the three months ended June 27, 2014: | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 43 | $ | -402 | $ | -16 | $ | -375 | ||||||||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | 35 | -5 | 23 | 53 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings, net of tax | - | 1(a) | 1 | 2 | ||||||||||||||||||||||
Other comprehensive earnings (losses), net of tax | 35 | -4 | 24 | 55 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 78 | $ | -406 | $ | 8 | $ | -320 | ||||||||||||||||||
For the three months ended June 28, 2013: | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | -3 | $ | -544 | $ | 8 | $ | -539 | ||||||||||||||||||
Other comprehensive losses before reclassifications, net of tax | -31 | -37 | -23 | -91 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 4(b) | -1 | 3 | ||||||||||||||||||||||
Other comprehensive losses, net of tax | -31 | -33 | -24 | -88 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | -34 | $ | -577 | $ | -16 | $ | -627 | ||||||||||||||||||
(a) | Includes actuarial gains of $5 million, reduced by prior service cost of $3 million, net of tax of $1 million. | |||||||||||||||||||||||||
(b) | Includes actuarial gains of $10 million, reduced by prior service cost of $4 million, net of tax of $2 million. | |||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
For the six months ended June 27, 2014: | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 41 | $ | -405 | $ | -16 | $ | -380 | ||||||||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | 37 | -3 | 20 | 54 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings, net of tax | - | 2(a) | 4 | 6 | ||||||||||||||||||||||
Other comprehensive earnings (losses), net of tax | 37 | -1 | 24 | 60 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 78 | $ | -406 | $ | 8 | $ | -320 | ||||||||||||||||||
For the six months ended June 28, 2013 | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 83 | $ | -559 | $ | 10 | $ | -466 | ||||||||||||||||||
Other comprehensive losses before reclassifications, net of tax | -117 | -27 | -25 | -169 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 9(b) | -1 | 8 | ||||||||||||||||||||||
Other comprehensive losses, net of tax | -117 | -18 | -26 | -161 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | -34 | $ | -577 | $ | -16 | $ | -627 | ||||||||||||||||||
(a) | Includes actuarial gains of $9 million, reduced by prior service cost of $6 million, net of tax of $1 million. | |||||||||||||||||||||||||
(b) | Includes actuarial gains of $22 million, reduced by prior service cost of $9 million, net of tax of $4 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: | ||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||
June 27, | June 28, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance | $ | 152 | $ | 140 | ||||||||||||||||||||||
Current period accruals, net of changes in estimates | 21 | 26 | ||||||||||||||||||||||||
Used for purposes intended | -21 | -20 | ||||||||||||||||||||||||
Effects of foreign currency translation | -2 | -3 | ||||||||||||||||||||||||
Ending balance | $ | 150 | $ | 143 | ||||||||||||||||||||||
Recently Adopted Accounting Pronouncements. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, discontinued operations and assets held for sale represent a strategic shift that has or will have a major effect on an entity's operations and financial results. The Company adopted this guidance during the second quarter of 2014 and will apply it prospectively to new disposals and new classifications of disposal groups as held for sale. The adoption of this guidance had no impact on the Company's financial statements. | ||||||||||||||||||||||||||
Recently Issued Accounting Pronouncements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides a single revenue recognition model intended to improve comparability over a range of industries, companies and geographical boundaries and is intended to enhance disclosures. The standard is effective retrospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently reviewing the new standard and assessing the potential impact on its operations and financial statements. | ||||||||||||||||||||||||||
Inventories
Inventories | 6 Months Ended | ||||||||||
Jun. 27, 2014 | |||||||||||
Inventories [Abstract] | ' | ||||||||||
Inventories | ' | ||||||||||
3. Inventories | |||||||||||
The major classes of inventory are as follows: | |||||||||||
As of | |||||||||||
June 27, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
(Dollars in millions) | |||||||||||
Finished products and work in process | $ | 553 | $ | 499 | |||||||
Raw materials and supplies | 566 | 520 | |||||||||
Total inventories | $ | 1,119 | $ | 1,019 |
Investment_in_Joint_Venture_Af
Investment in Joint Venture Affiliate | 6 Months Ended |
Jun. 27, 2014 | |
Investment in Joint Venture Affiliate [Abtract] | ' |
Investment in Joint Venture Affiliate [Text Block] | ' |
In the second quarter of 2014, the Company made an initial equity contribution of $6 million in a newly-formed joint venture of which the Company owns a 30% share. This joint venture will construct and operate a casting foundry in order to eventually supply castings to the Company's North American Braking operations through a long-term supply arrangement. | |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | |||||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | |||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||||
5. Goodwill and Intangible Assets | ||||||||||||||||||||||||||
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, 2013 | $ | 1,071 | $ | 541 | $ | 148 | $ | - | $ | 1,760 | ||||||||||||||||
Effects of foreign currency translation | - | -1 | - | - | -1 | |||||||||||||||||||||
Balance as of June 27, 2014 | $ | 1,071 | $ | 540 | $ | 148 | $ | - | $ | 1,759 | ||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||
The following table reflects intangible assets and related accumulated amortization: | ||||||||||||||||||||||||||
As of June 27, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Developed technology and other intangible assets | $ | 118 | -93 | $ | 25 | $ | 119 | $ | -91 | $ | 28 | |||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | 264 | 264 | 264 | 264 | ||||||||||||||||||||||
Total | $ | 382 | $ | 289 | $ | 383 | $ | 292 | ||||||||||||||||||
The Company expects that ongoing amortization expense will approximate the following: | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Remainder of 2014 | $ | 2 | ||||||||||||||||||||||||
Fiscal year 2015 | 3 | |||||||||||||||||||||||||
2016 and beyond | 20 | |||||||||||||||||||||||||
The expected amortization expense for 2016 and beyond primarily relates to land use rights. |
Other_Income_Expense_Net
Other (Income) Expense - Net | 6 Months Ended | ||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||
Other (Income) Expense - Net [Abstract] | ' | ||||||||||||||||||
Other (Income) Expense - Net | ' | ||||||||||||||||||
6. Other Expense (Income) — Net | |||||||||||||||||||
The following table provides details of other expense (income) — net: | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 27, | June 28, | June 27, | June 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net provision for bad debts | $ | 3 | $ | - | $ | 4 | $ | 2 | |||||||||||
Net gains on sales of assets and divestitures | - | - | - | -1 | |||||||||||||||
Foreign currency exchange losses | 5 | 8 | 13 | 6 | |||||||||||||||
Royalty and grant income | -6 | -5 | -9 | -6 | |||||||||||||||
Miscellaneous other expense (income) | 7 | -5 | 7 | -7 | |||||||||||||||
Other expense (income) — net | $ | 9 | $ | -2 | $ | 15 | $ | -6 |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
7. 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 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 June 27, 2014 was $92 million on pre-tax earnings of $367 million and income tax expense for the six months ended June 27, 2014 was $170 million on pre-tax earnings of $654 million. Income tax expense for the three months ended June 28, 2013 was $97 million on pre-tax earnings of $357 million and income tax expense for the six months ended June 28, 2013 was $159 million on pre-tax earnings of $592 million. Income tax expense for the three and six month periods ended June 27, 2014 includes a $6 million net tax benefit related to a favorable ruling and the resolution of various tax matters in foreign jurisdictions. Income tax expense for the three months ended June 28, 2013 includes a net tax benefit of $4 million relating to the resolution of various tax matters in foreign jurisdictions. Income tax expense for the six months ended June 28, 2013 includes a tax benefit of $12 million relating to the enactment of the American Taxpayer Relief Act of 2012 (the “Act”), partially offset by other discrete items, resulting in a net tax benefit of $8 million for the period. The Act was enacted on January 2, 2013 and retroactively reinstated and extended various tax provisions, including the research and development tax credit and the look through rules for controlled foreign corporations. For the periods ended June 27, 2014 and June 28, 2013, 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 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 potential change in gross unrecognized tax benefits. |
Pension_Plans_and_Postretireme
Pension Plans and Postretirement Benefits Other Than Pensions | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
8. 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-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 5 | $ | 1 | $ | - | $ | 5 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 10 | 53 | 8 | 10 | 47 | 9 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -13 | -87 | -4 | -14 | -78 | -5 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 2 | - | 3 | 6 | - | 6 | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | - | $ | -34 | $ | 12 | $ | 3 | $ | -31 | $ | 15 | |||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 11 | $ | 1 | $ | - | $ | 11 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 19 | 105 | 18 | 21 | 94 | 18 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -25 | -173 | -9 | -29 | -156 | -10 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 4 | - | 6 | 13 | - | 10 | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | -1 | $ | -68 | $ | 26 | $ | 6 | $ | -62 | $ | 29 | |||||||||||||||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions ("OPEB") | |||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide the components of net OPEB cost (income) for the Company's plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | $ | 4 | $ | 1 | $ | 4 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||
Amortization | -3 | -1 | -3 | -2 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -2 | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB cost (income) | $ | 1 | $ | - | $ | -1 | $ | -1 | |||||||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | $ | 8 | $ | 2 | $ | 7 | $ | 2 | |||||||||||||||||||||||||||||||||||||||||
Amortization | -5 | -3 | -7 | -2 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -6 | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB cost (income) | $ | 3 | $ | -1 | $ | -6 | $ | - |
Fair_Value_Measurements_and_Fi
Fair Value Measurements and Financial Instruments | 6 Months Ended | |||||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Fair Value Measurements and Financial Instruments [Text Block] | ' | |||||||||||||||||||||||||
9. Fair Value Measurements and Financial Instruments | ||||||||||||||||||||||||||
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. Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. | ||||||||||||||||||||||||||
Level 2. Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||||||||||||
Level 3. Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the Company's best assumptions of how market participants would price the assets or liabilities. | ||||||||||||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||
The fair value measurements for assets and liabilities recognized in the Company's condensed consolidated balance sheets are as follows: | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
27-Jun-14 | 31-Dec-13 | Measurement Approach | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Foreign currency exchange contracts — current assets | $ | 12 | $ | 6 | Level 2 | |||||||||||||||||||||
Foreign currency exchange contracts — noncurrent assets | 10 | - | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — current liability | 3 | 5 | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — noncurrent liability | 1 | 9 | Level 2 | |||||||||||||||||||||||
The Company's foreign currency exchange contracts are recorded at fair value 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. The Company uses quoted currency forward rates to calculate forward values, and then discounts 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. 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 six months ended June 27, 2014. | ||||||||||||||||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||
In addition to items that are measured at fair value on a recurring basis, we also have assets that may be measured at fair value on a nonrecurring basis. These assets include long-lived assets, intangible assets and investments in affiliates, which may be written down to fair value as a result of impairment. | ||||||||||||||||||||||||||
The Company has determined that the fair value measurements related to each of these assets rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets, 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. For the six months ended June 27, 2014, the Company recorded asset impairments of $12 million associated with its determination of the fair value of its long-lived assets that exhibited indicators of impairment (see Note 11). | ||||||||||||||||||||||||||
Financial Instruments Not Carried at Fair Value | ||||||||||||||||||||||||||
The carrying value and estimated fair value of financial instruments that are not carried on the Company's balance sheet at fair value are as follows: | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
27-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Measurement | ||||||||||||||||||||||
Value | Value | Value | Value | Approach | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Short-term debt, fixed and floating rate | $ | 406 | $ | 406 | $ | 159 | $ | 159 | Level 2 | |||||||||||||||||
Fixed rate long-term debt | $ | 1,349 | $ | 1,466 | $ | 1,821 | $ | 1,884 | Level 2 | |||||||||||||||||
Fixed rate exchangeable notes | $ | 137 | $ | 448 | $ | 134 | $ | 375 | Level 2 | |||||||||||||||||
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. | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||
The Company is exposed to fluctuations in foreign currency exchange rates, interest rates and commodity prices. The Company enters into derivative instruments primarily to hedge portions of its forecasted foreign currency denominated cash flows and designates these derivative instruments as cash flow hedges in order to qualify for hedge accounting. Certain foreign exchange contracts that do not qualify for hedge accounting are entered into to hedge recognized foreign currency transactions. All gains or losses on derivative instruments which are not designated for hedge accounting treatment or do not qualify for hedge accounting, or result from hedge ineffectiveness, are reported in earnings immediately. | ||||||||||||||||||||||||||
In addition, 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 June 27, 2014, the Company had a notional value of $2.6 billion in foreign exchange contracts outstanding. These foreign exchange contracts mature at various dates through May 2017. | ||||||||||||||||||||||||||
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 period which the hedged transaction affects earnings. The earnings impact is reported either in sales, cost of sales, or other expense (income) ‒ net, to match the underlying transaction. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, which were immaterial for each of the three and six month periods ended June 27, 2014 and June 28, 2013, are recognized in other expense (income) ‒ net. | ||||||||||||||||||||||||||
The effective portion of gains and losses on derivatives designated as cash flow hedges and recognized in OCI was a gain of $28 million and $25 million for the three and six month periods ended June 27, 2014, respectively, compared to a loss of $33 million for both the three and six month periods ended June 28, 2013, 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 six month periods ended June 27, 2014 was a loss of $2 million and loss of $5 million, respectively, and was included in various line items on the statement of earnings, compared to a gain of $1 million for both the three and six month periods ended June 28, 2013. | ||||||||||||||||||||||||||
Gains and losses reclassified into earnings include the discontinuance of cash flow hedges, which were immaterial for each of the three and six months ended June 27, 2014 and June 28, 2013. Approximately $4 million of gains, net of tax, which are included in OCI, are expected to be reclassified into earnings in the next twelve months. | ||||||||||||||||||||||||||
Undesignated Derivatives. For the three and six months ended June 27, 2014, the Company recognized losses of $4 million and $3 million, respectively, in other expense (income) ‒ net, for derivative instruments not designated as hedging instruments. For the three and six months ended June 28, 2013, the Company recognized losses of $2 million and $3 million, respectively, in other expense (income)‒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. | ||||||||||||||||||||||||||
Offsetting of Derivative Assets and Liabilities | ||||||||||||||||||||||||||
The following table reflects the offsetting of derivative assets and liabilities: | ||||||||||||||||||||||||||
As of June 27, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||
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 | $ | 54 | $ | -32 | $ | 22 | $ | 42 | $ | -36 | $ | 6 | ||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||
Foreign Currency | 36 | -32 | 4 | 50 | -36 | 14 |
Debt
Debt | 6 Months Ended | |||||||||||
Jun. 27, 2014 | ||||||||||||
Debt [Abstract] | ' | |||||||||||
Debt | ' | |||||||||||
10. Debt | ||||||||||||
Total outstanding debt of the Company consisted of the following: | ||||||||||||
As of | ||||||||||||
June 27, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
(Dollars in millions) | ||||||||||||
Short-term debt | $ | 406 | $ | 159 | ||||||||
Long-term debt: | ||||||||||||
6.375% Senior Notes, due 2014 | $ | - | $ | 234 | ||||||||
7.00% Senior Notes, due 2014 | - | 233 | ||||||||||
7.25% Senior Notes, due 2017 | 445 | 446 | ||||||||||
4.50% Senior Notes, due 2021 | 400 | 400 | ||||||||||
4.45% Senior Notes, due 2023 | 400 | 400 | ||||||||||
Exchangeable senior notes, due 2015 | 137 | 134 | ||||||||||
Revolving credit facility | - | - | ||||||||||
Capitalized leases | 17 | 18 | ||||||||||
Other long-term borrowings | 87 | 90 | ||||||||||
Total long-term debt | 1,486 | 1,955 | ||||||||||
Less current portion | 37 | 482 | ||||||||||
Long-term debt, net of current portion | $ | 1,449 | $ | 1,473 | ||||||||
Senior Notes | ||||||||||||
4.45% Senior Notes. In November 2013, the Company issued $400 million in aggregate principal amount of 4.45% senior unsecured notes due 2023 in a private placement. Interest is payable semi-annually on December 1 and June 1 of each year. | ||||||||||||
4.50% Senior Notes. In February 2013, the Company issued $400 million in aggregate principal amount of 4.50% senior unsecured notes due 2021 in a private placement. Interest is payable semi-annually on March 1 and September 1 of each year. | ||||||||||||
7.25% Senior Notes. In March 2007, the Company issued $600 million in aggregate principal amount of 7.25% senior unsecured notes due 2017 in a private placement. Interest is payable semi-annually on March 15 and September 15 of each year. | ||||||||||||
6.375% Senior Notes and 7.00% Senior Notes Issued in 2007. On March 15, 2014, the 6.375% Senior Notes and 7.00% Senior Notes matured and the Company paid the principal amounts outstanding of €170 million and $233 million, respectively. | ||||||||||||
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 was met as of June 27, 2014, and as such, the notes are exchangeable in the third quarter of 2014. They will remain exchangeable in subsequent quarters if the 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 $38.415, subject to adjustment. The initial exchange rate is 33.8392 shares of the Company's common stock per $1,000 principal amount of notes. 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 optionally redeemed by the Company as provided in the indenture. | ||||||||||||
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 June 27, 2014 and December 31, 2013 was $11 million and $14 million, respectively. The total interest expense recognized for the three and six months ended June 27, 2014 was approximately $3 million and $6 million, respectively, including $2 million and $3 million in each respective period relating to the stated coupon rate. The total interest expense recognized for the three and six months ended June 28, 2013 was approximately $4 million and $7 million, respectively, including $2 million and $3 million in each respective period relating to the stated coupon rate. | ||||||||||||
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 (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”). All of the Facilities are undrawn. | ||||||||||||
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 June 27, 2014 was 0.25% with respect to base rate borrowings, 1.25% with respect to eurocurrency borrowings, and the commitment fee on the undrawn amounts under the Revolving Credit Facility was 0.25%. | ||||||||||||
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 optionally redeem such debt securities. | ||||||||||||
Other Borrowings | ||||||||||||
The Company has borrowings under uncommitted credit agreements in several of the countries in which it operates. The borrowings are from various individual banks at quoted market interest rates. As of June 27, 2014, the Company had short-term borrowings under uncommitted credit facilities totaling $397 million. |
Restructuring_Charges_and_Asse
Restructuring Charges and Asset Impairments | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||
Restructuring Charges And Asset Impairments [Abstract] | ' | ||||||||||||||||||||||||||
Restructuring Charges and Asset Impairments | ' | ||||||||||||||||||||||||||
11. Restructuring Charges and Asset Impairments | |||||||||||||||||||||||||||
Restructuring charges and asset impairments incurred as part of the Company's ongoing effort to better align the Company's cost structure with global automotive market conditions, primarily in the European and North American automotive markets, include the following: | |||||||||||||||||||||||||||
Occupant | |||||||||||||||||||||||||||
Chassis | Safety | Automotive | |||||||||||||||||||||||||
Systems | Systems | Electronics | Components | ||||||||||||||||||||||||
Segment | Segment | Segment | Segment | Corporate | Total | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
For the three months ended June 27, 2014: | |||||||||||||||||||||||||||
Severance and other charges - net | $ | 3 | $ | 2 | $ | - | $ | 1 | $ | - | $ | 6 | |||||||||||||||
Total restructuring charges and asset impairments | $ | 3 | $ | 2 | $ | - | $ | 1 | $ | - | $ | 6 | |||||||||||||||
For the three months ended June 28, 2013: | |||||||||||||||||||||||||||
Severance and other charges | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | |||||||||||||||
Total restructuring charges and asset impairments | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | |||||||||||||||
For the six months ended June 27, 2014: | |||||||||||||||||||||||||||
Severance and other charges - net | $ | 10 | $ | 2 | $ | - | $ | 2 | $ | - | $ | 14 | |||||||||||||||
Asset impairments related to restructuring activities | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 22 | $ | 2 | $ | - | $ | 2 | $ | - | $ | 26 | |||||||||||||||
For the six months ended June 28, 2013: | |||||||||||||||||||||||||||
Severance and other charges | $ | 17 | $ | 27 | $ | - | $ | -6 | $ | - | $ | 38 | |||||||||||||||
Total restructuring charges and asset impairments | $ | 17 | $ | 27 | $ | - | $ | -6 | $ | - | $ | 38 | |||||||||||||||
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: | |||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||
June 27, | June 28, | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Beginning balance | $ | 88 | $ | 121 | |||||||||||||||||||||||
Current period accruals, net of changes in estimates | 14 | 38 | |||||||||||||||||||||||||
Used for purposes intended | -34 | -43 | |||||||||||||||||||||||||
Effects of foreign currency translation | -1 | -1 | |||||||||||||||||||||||||
Ending balance | $ | 67 | $ | 115 | |||||||||||||||||||||||
Of the $67 million restructuring reserves as of June 27, 2014, approximately $40 million is expected to be paid in the remainder of 2014. The remaining balance is expected to be paid in 2015 to 2016 and is comprised primarily of involuntary employee termination arrangements in Europe. |
Capital_Stock
Capital Stock | 6 Months Ended |
Jun. 27, 2014 | |
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 110,884,083 shares were issued and outstanding as of June 27, 2014, 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 stock-settled stock appreciation rights and the vesting of restricted stock units issued as part of the Company's stock incentive plan (see Note 13). | |
Share Repurchase Programs. The Company has two share repurchase programs in place, consisting of a $2 billion program that extends through December 31, 2016 (the “$2 Billion Program”), and a program that is intended to offset, on an ongoing basis, the dilution created by the Company's stock incentive plan for up to 1.5 million shares in 2014 and each subsequent year (the “Anti-Dilution Program”). The Anti-Dilution program does not have an expiration date. The Company is not obligated to repurchase any shares under either program. | |
In the first quarter of 2014, 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 $400 million and received an initial delivery of approximately 3.9 million shares in the first quarter of 2014. 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 ASR is expected be completed by the end of the third quarter of 2014. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||
Share-Based Compensation [Abstract] | ' | |||||||||||||||||
Share-Based Compensation | ' | |||||||||||||||||
13. Share-Based Compensation | ||||||||||||||||||
Equity Awards | ||||||||||||||||||
On February 21, 2014, the Company granted 850,900 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 $82.50 to the fair market value on the exercise date, although the stock price at exercise is limited to a maximum value of $130.00. | ||||||||||||||||||
On February 21, 2014, the Company also granted 284,723 RSUs to executive officers and certain employees of the Company pursuant to the 2012 Plan and 3,365 phantom stock units (“PSUs”) to certain other 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. | ||||||||||||||||||
In addition, on February 21, 2014, the Company granted 46,949 Performance Units to executive officers. The number of Performance Units that will be earned will be based on the Company's achievement of total shareholder return (“TSR”) over a three-year period relative to automotive parts companies within the Russell 3000 Index, and the number of units can vary from 0% to 150% of the target award amount. The three-year performance period ends on December 31, 2016, and any Performance Units earned will be settled in shares of the Company's common stock. | ||||||||||||||||||
On May 13, 2014, the Company granted 14,742 RSUs to independent directors of the Company pursuant to the 2012 Plan. | ||||||||||||||||||
As of June 27, 2014, the Company had 3,349,736 shares of Common Stock available for issuance under the 2012 Plan. In addition, 252,197 stock options, 3,618,952 SSARs, 693,699 nonvested RSUs, 12,650 nonvested PSUs and 46,949 nonvested Performance Units were outstanding as of June 27, 2014. All of the SSARs and stock options have an 8-year term and vest ratably over three years, substantially all of 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 provisions in the equity award agreements beginning in 2013, the Company applies a non-substantive vesting period approach for certain of the awards granted in 2014 and 2013 whereby expense is accelerated for those employees who 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 | Six Months Ended | |||||||||||||||||
June 27, | June 28, | June 27, | June 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Stock options and SSARs | $ | 3 | $ | 4 | $ | 5 | $ | 6 | ||||||||||
RSUs | 7 | 6 | 12 | 15 | ||||||||||||||
Performance Units | 1 | - | 2 | - | ||||||||||||||
Total share-based compensation expense | $ | 11 | $ | 10 | $ | 19 | $ | 21 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 27, 2014 | |
Contingencies [Abstract] | ' |
Contingencies | ' |
14. 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 June 27, 2014, the Company had reserves for environmental matters of $73 million. In addition, the Company has established a receivable for a portion of this environmental liability as a result of its right to indemnification for 50% of any environmental liabilities associated with the operation or ownership of the Company's automotive business existing at or prior to March 2003. 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. | |
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 contingencies 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 in 2012 when the court approved a plea agreement between one of the Company's German subsidiaries and the DOJ. Also in June 2011, the European Commission initiated an Antitrust Investigation which includes the Company, among others, and which 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 its 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 settled, for an amount that is immaterial to the Company, certain purported class action lawsuits filed 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. These lawsuits were filed on various dates from June 2012 through July 2013 and were consolidated in the United States District Court for the Eastern District of Michigan. Once the court approves the settlements, those cases will be dismissed. Class action lawsuits filed against the Company on various dates from June 2012 through May 2014 in the United States District Court for the Eastern District of Michigan on behalf of direct purchasers and in various courts in Canada on behalf of vehicle purchasers, lessors, dealers and direct purchasers remain pending, which the Company intends to vigorously defend. Management believes that the ultimate resolution of those cases will not have a material adverse effect on the Company's financial condition, results of operations or cash flows. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||
Segment Information | ' | ||||||||||||||||||
15. Segment Information | |||||||||||||||||||
The following tables present certain financial information by segment: | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 27, | June 28, | June 27, | June 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Sales to external customers: | |||||||||||||||||||
Chassis Systems | $ | 2,954 | $ | 2,985 | $ | 5,825 | $ | 5,710 | |||||||||||
Occupant Safety Systems | 905 | 856 | 1,770 | 1,700 | |||||||||||||||
Electronics | 241 | 184 | 460 | 346 | |||||||||||||||
Automotive Components | 493 | 489 | 980 | 971 | |||||||||||||||
Total sales to external customers | $ | 4,593 | $ | 4,514 | $ | 9,035 | $ | 8,727 | |||||||||||
Intersegment sales: | |||||||||||||||||||
Chassis Systems | $ | 4 | $ | 4 | $ | 7 | $ | 8 | |||||||||||
Occupant Safety Systems | 38 | 33 | 75 | 66 | |||||||||||||||
Electronics | 144 | 142 | 293 | 272 | |||||||||||||||
Automotive Components | 19 | 19 | 38 | 37 | |||||||||||||||
Total intersegment sales | $ | 205 | $ | 198 | $ | 413 | $ | 383 | |||||||||||
Total segment sales: | |||||||||||||||||||
Chassis Systems | $ | 2,958 | $ | 2,989 | $ | 5,832 | $ | 5,718 | |||||||||||
Occupant Safety Systems | 943 | 889 | 1,845 | 1,766 | |||||||||||||||
Electronics | 385 | 326 | 753 | 618 | |||||||||||||||
Automotive Components | 512 | 508 | 1,018 | 1,008 | |||||||||||||||
Total segment sales | $ | 4,798 | $ | 4,712 | $ | 9,448 | $ | 9,110 | |||||||||||
Earnings before taxes: | |||||||||||||||||||
Chassis Systems | $ | 243 | $ | 246 | $ | 435 | $ | 412 | |||||||||||
Occupant Safety Systems | 89 | 80 | 154 | 112 | |||||||||||||||
Electronics | 36 | 32 | 72 | 58 | |||||||||||||||
Automotive Components | 39 | 43 | 82 | 88 | |||||||||||||||
Segment earnings before taxes | 407 | 401 | 743 | 670 | |||||||||||||||
Corporate expense and other | -24 | -17 | -52 | -32 | |||||||||||||||
Financing costs | -26 | -34 | -57 | -64 | |||||||||||||||
Loss on retirement of debt — net | - | -5 | - | -5 | |||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 10 | 12 | 20 | 23 | |||||||||||||||
Earnings before income taxes | $ | 367 | $ | 357 | $ | 654 | $ | 592 | |||||||||||
See Note 11 for a summary of restructuring charges and asset impairments by segment. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 27, 2014 | |
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”), stock-settled stock appreciation rights (“SSARs”) and performance stock units (“Performance Units”). 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 Accounting Pronouncements. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, discontinued operations and assets held for sale represent a strategic shift that has or will have a major effect on an entity's operations and financial results. The Company adopted this guidance during the second quarter of 2014 and will apply it prospectively to new disposals and new classifications of disposal groups as held for sale. The adoption of this guidance had no impact on the Company's financial statements. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides a single revenue recognition model intended to improve comparability over a range of industries, companies and geographical boundaries and is intended to enhance disclosures. The standard is effective retrospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently reviewing the new standard and assessing the potential impact on its operations and financial statements. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||||
Basis of Presentation [Abstract] | ' | |||||||||||||||||||||||||
Net Earnings (Losses) Attributable to TRW and the Weighted Average Shares Outstanding [Table Text Block] | ' | |||||||||||||||||||||||||
Net earnings attributable to TRW and the weighted average shares outstanding used in calculating basic and diluted earnings per share were: | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 27, | June 28, | June 27, | June 28, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||
Net earnings attributable to TRW | $ | 265 | $ | 248 | $ | 464 | $ | 410 | ||||||||||||||||||
Interest expense on exchangeable notes, net of tax | 1 | 1 | 2 | 2 | ||||||||||||||||||||||
Amortization of discount on exchangeable notes, net of tax | 1 | 1 | 2 | 2 | ||||||||||||||||||||||
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $ | 267 | $ | 250 | $ | 468 | $ | 414 | ||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 110.8 | 118.9 | 112 | 119.2 | ||||||||||||||||||||||
Basic earnings per share | $ | 2.39 | $ | 2.09 | $ | 4.14 | $ | 3.44 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Weighted average shares outstanding | 110.8 | 118.9 | 112 | 119.2 | ||||||||||||||||||||||
Effect of dilutive stock options, RSUs and SSARs | 1.6 | 1 | 1.6 | 1.2 | ||||||||||||||||||||||
Shares applicable to exchangeable notes | 5 | 5.9 | 5 | 5.9 | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 117.4 | 125.8 | 118.6 | 126.3 | ||||||||||||||||||||||
Diluted earnings per share | $ | 2.27 | $ | 1.99 | $ | 3.95 | $ | 3.28 | ||||||||||||||||||
Movement in the Product Warranty Liability [Table Text Block] | ' | |||||||||||||||||||||||||
The following table presents the movement in the product warranty liability for the periods indicated: | ||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||
June 27, | June 28, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance | $ | 152 | $ | 140 | ||||||||||||||||||||||
Current period accruals, net of changes in estimates | 21 | 26 | ||||||||||||||||||||||||
Used for purposes intended | -21 | -20 | ||||||||||||||||||||||||
Effects of foreign currency translation | -2 | -3 | ||||||||||||||||||||||||
Ending balance | $ | 150 | $ | 143 | ||||||||||||||||||||||
Changes in Equity [Table Text Block] | ' | |||||||||||||||||||||||||
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-Jun-14 | 28-Jun-13 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 4,198 | $ | 3,991 | $ | 207 | $ | 3,870 | $ | 3,671 | $ | 199 | ||||||||||||||
Net earnings | 275 | 265 | 10 | 260 | 248 | 12 | ||||||||||||||||||||
Other comprehensive earnings (losses) | 53 | 55 | -2 | -87 | -88 | 1 | ||||||||||||||||||||
Dividends paid to noncontrolling interest | - | - | - | -13 | - | -13 | ||||||||||||||||||||
Changes related to share-based compensation | 13 | 13 | - | 13 | 13 | - | ||||||||||||||||||||
Repurchase of capital stock | - | - | - | -190 | -190 | - | ||||||||||||||||||||
Ending balance of equity | $ | 4,539 | $ | 4,324 | $ | 215 | $ | 3,853 | $ | 3,654 | $ | 199 | ||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | |||||||||||||||||||||||||
Total | TRW Shareholders | Noncontrolling Interest | Total | TRW Shareholders | Noncontrolling Interest | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Beginning balance of equity | $ | 4,396 | $ | 4,194 | $ | 202 | $ | 3,769 | $ | 3,578 | $ | 191 | ||||||||||||||
Net earnings | 484 | 464 | 20 | 433 | 410 | 23 | ||||||||||||||||||||
Other comprehensive earnings (losses) | 56 | 60 | -4 | -161 | -161 | - | ||||||||||||||||||||
Dividends paid to noncontrolling interest | -3 | - | -3 | -15 | - | -15 | ||||||||||||||||||||
Changes related to share-based compensation | 6 | 6 | - | 27 | 27 | - | ||||||||||||||||||||
Repurchase of capital stock | -400 | -400 | - | -200 | -200 | - | ||||||||||||||||||||
Ending balance of equity | $ | 4,539 | $ | 4,324 | $ | 215 | $ | 3,853 | $ | 3,654 | $ | 199 | ||||||||||||||
Schedule Of Accumulated Other Comprehensive Income Loss [Table Text Block] | ' | |||||||||||||||||||||||||
The following tables present changes in accumulated other comprehensive earnings (losses) attributable to TRW by component: | ||||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
For the three months ended June 27, 2014: | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 43 | $ | -402 | $ | -16 | $ | -375 | ||||||||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | 35 | -5 | 23 | 53 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings, net of tax | - | 1(a) | 1 | 2 | ||||||||||||||||||||||
Other comprehensive earnings (losses), net of tax | 35 | -4 | 24 | 55 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 78 | $ | -406 | $ | 8 | $ | -320 | ||||||||||||||||||
For the three months ended June 28, 2013: | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | -3 | $ | -544 | $ | 8 | $ | -539 | ||||||||||||||||||
Other comprehensive losses before reclassifications, net of tax | -31 | -37 | -23 | -91 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 4(b) | -1 | 3 | ||||||||||||||||||||||
Other comprehensive losses, net of tax | -31 | -33 | -24 | -88 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | -34 | $ | -577 | $ | -16 | $ | -627 | ||||||||||||||||||
(a) | Includes actuarial gains of $5 million, reduced by prior service cost of $3 million, net of tax of $1 million. | |||||||||||||||||||||||||
(b) | Includes actuarial gains of $10 million, reduced by prior service cost of $4 million, net of tax of $2 million. | |||||||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
For the six months ended June 27, 2014: | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 41 | $ | -405 | $ | -16 | $ | -380 | ||||||||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | 37 | -3 | 20 | 54 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings, net of tax | - | 2(a) | 4 | 6 | ||||||||||||||||||||||
Other comprehensive earnings (losses), net of tax | 37 | -1 | 24 | 60 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 78 | $ | -406 | $ | 8 | $ | -320 | ||||||||||||||||||
For the six months ended June 28, 2013 | ||||||||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 83 | $ | -559 | $ | 10 | $ | -466 | ||||||||||||||||||
Other comprehensive losses before reclassifications, net of tax | -117 | -27 | -25 | -169 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 9(b) | -1 | 8 | ||||||||||||||||||||||
Other comprehensive losses, net of tax | -117 | -18 | -26 | -161 | ||||||||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | -34 | $ | -577 | $ | -16 | $ | -627 | ||||||||||||||||||
(a) | Includes actuarial gains of $9 million, reduced by prior service cost of $6 million, net of tax of $1 million. | |||||||||||||||||||||||||
(b) | Includes actuarial gains of $22 million, reduced by prior service cost of $9 million, net of tax of $4 million. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||||
Jun. 27, 2014 | |||||||||||
Inventories [Abstract] | ' | ||||||||||
Major Classes of Inventory [Table Text Block] | ' | ||||||||||
3. Inventories | |||||||||||
The major classes of inventory are as follows: | |||||||||||
As of | |||||||||||
June 27, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
(Dollars in millions) | |||||||||||
Finished products and work in process | $ | 553 | $ | 499 | |||||||
Raw materials and supplies | 566 | 520 | |||||||||
Total inventories | $ | 1,119 | $ | 1,019 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | |||||||||||||||||||||||||
Changes in Goodwill [Table Text Block] | ' | |||||||||||||||||||||||||
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, 2013 | $ | 1,071 | $ | 541 | $ | 148 | $ | - | $ | 1,760 | ||||||||||||||||
Effects of foreign currency translation | - | -1 | - | - | -1 | |||||||||||||||||||||
Balance as of June 27, 2014 | $ | 1,071 | $ | 540 | $ | 148 | $ | - | $ | 1,759 | ||||||||||||||||
Schedule Of Intangible Assets By Major Class [Table Text Block] | ' | |||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||
The following table reflects intangible assets and related accumulated amortization: | ||||||||||||||||||||||||||
As of June 27, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Developed technology and other intangible assets | $ | 118 | -93 | $ | 25 | $ | 119 | $ | -91 | $ | 28 | |||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | 264 | 264 | 264 | 264 | ||||||||||||||||||||||
Total | $ | 382 | $ | 289 | $ | 383 | $ | 292 | ||||||||||||||||||
Expected Amortization Expense [Table Text Block] | ' | |||||||||||||||||||||||||
The Company expects that ongoing amortization expense will approximate the following: | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Remainder of 2014 | $ | 2 | ||||||||||||||||||||||||
Fiscal year 2015 | 3 | |||||||||||||||||||||||||
2016 and beyond | 20 | |||||||||||||||||||||||||
The expected amortization expense for 2016 and beyond primarily relates to land use rights. |
Other_Income_Expense_Net_Table
Other (Income) Expense - Net (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||
Other (Income) Expense - Net [Abstract] | ' | ||||||||||||||||||
Other Income And Expense Net Disclosure [Table Text Block] | ' | ||||||||||||||||||
6. Other Expense (Income) — Net | |||||||||||||||||||
The following table provides details of other expense (income) — net: | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 27, | June 28, | June 27, | June 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net provision for bad debts | $ | 3 | $ | - | $ | 4 | $ | 2 | |||||||||||
Net gains on sales of assets and divestitures | - | - | - | -1 | |||||||||||||||
Foreign currency exchange losses | 5 | 8 | 13 | 6 | |||||||||||||||
Royalty and grant income | -6 | -5 | -9 | -6 | |||||||||||||||
Miscellaneous other expense (income) | 7 | -5 | 7 | -7 | |||||||||||||||
Other expense (income) — net | $ | 9 | $ | -2 | $ | 15 | $ | -6 |
Pension_Plans_and_Postretireme1
Pension Plans and Postretirement Benefits Other Than Pensions (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Postretirement Benefits Other Than Pensions [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
8. 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-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 5 | $ | 1 | $ | - | $ | 5 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 10 | 53 | 8 | 10 | 47 | 9 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -13 | -87 | -4 | -14 | -78 | -5 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 2 | - | 3 | 6 | - | 6 | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | - | $ | -34 | $ | 12 | $ | 3 | $ | -31 | $ | 15 | |||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | - | $ | 11 | $ | 1 | $ | - | $ | 11 | |||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | 19 | 105 | 18 | 21 | 94 | 18 | |||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | -25 | -173 | -9 | -29 | -156 | -10 | |||||||||||||||||||||||||||||||||||||||||||
Amortization | 4 | - | 6 | 13 | - | 10 | |||||||||||||||||||||||||||||||||||||||||||
Net pension (income) cost | $ | -1 | $ | -68 | $ | 26 | $ | 6 | $ | -62 | $ | 29 | |||||||||||||||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions ("OPEB") | |||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide the components of net OPEB cost (income) for the Company's plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | $ | 4 | $ | 1 | $ | 4 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||
Amortization | -3 | -1 | -3 | -2 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -2 | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB cost (income) | $ | 1 | $ | - | $ | -1 | $ | -1 | |||||||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
27-Jun-14 | 28-Jun-13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligations | $ | 8 | $ | 2 | $ | 7 | $ | 2 | |||||||||||||||||||||||||||||||||||||||||
Amortization | -5 | -3 | -7 | -2 | |||||||||||||||||||||||||||||||||||||||||||||
Settlement | - | - | -6 | - | |||||||||||||||||||||||||||||||||||||||||||||
Net OPEB cost (income) | $ | 3 | $ | -1 | $ | -6 | $ | - |
Fair_Value_Measurements_and_Fi1
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Fair Value Measurements Recurring Basis [Table Text Block] | ' | |||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
27-Jun-14 | 31-Dec-13 | Measurement Approach | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Foreign currency exchange contracts — current assets | $ | 12 | $ | 6 | Level 2 | |||||||||||||||||||||
Foreign currency exchange contracts — noncurrent assets | 10 | - | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — current liability | 3 | 5 | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — noncurrent liability | 1 | 9 | Level 2 | |||||||||||||||||||||||
Financial Instruments Not Carried at Fair Value [Table Text Block] | ' | |||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
27-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Measurement | ||||||||||||||||||||||
Value | Value | Value | Value | Approach | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Short-term debt, fixed and floating rate | $ | 406 | $ | 406 | $ | 159 | $ | 159 | Level 2 | |||||||||||||||||
Fixed rate long-term debt | $ | 1,349 | $ | 1,466 | $ | 1,821 | $ | 1,884 | Level 2 | |||||||||||||||||
Fixed rate exchangeable notes | $ | 137 | $ | 448 | $ | 134 | $ | 375 | Level 2 | |||||||||||||||||
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 June 27, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||
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 | $ | 54 | $ | -32 | $ | 22 | $ | 42 | $ | -36 | $ | 6 | ||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||
Foreign Currency | 36 | -32 | 4 | 50 | -36 | 14 |
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||||||
Jun. 27, 2014 | ||||||||||||
Debt [Abstract] | ' | |||||||||||
Total Outstanding Debt [Table Text Block] | ' | |||||||||||
10. Debt | ||||||||||||
Total outstanding debt of the Company consisted of the following: | ||||||||||||
As of | ||||||||||||
June 27, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
(Dollars in millions) | ||||||||||||
Short-term debt | $ | 406 | $ | 159 | ||||||||
Long-term debt: | ||||||||||||
6.375% Senior Notes, due 2014 | $ | - | $ | 234 | ||||||||
7.00% Senior Notes, due 2014 | - | 233 | ||||||||||
7.25% Senior Notes, due 2017 | 445 | 446 | ||||||||||
4.50% Senior Notes, due 2021 | 400 | 400 | ||||||||||
4.45% Senior Notes, due 2023 | 400 | 400 | ||||||||||
Exchangeable senior notes, due 2015 | 137 | 134 | ||||||||||
Revolving credit facility | - | - | ||||||||||
Capitalized leases | 17 | 18 | ||||||||||
Other long-term borrowings | 87 | 90 | ||||||||||
Total long-term debt | 1,486 | 1,955 | ||||||||||
Less current portion | 37 | 482 | ||||||||||
Long-term debt, net of current portion | $ | 1,449 | $ | 1,473 |
Restructuring_Charges_and_Asse1
Restructuring Charges and Asset Impairments (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||
Restructuring Charges And Asset Impairments [Abstract] | ' | ||||||||||||||||||||||||||
Schedule Of Restructuring Asset Impairment And Related Costs [Table Text Block] | ' | ||||||||||||||||||||||||||
Occupant | |||||||||||||||||||||||||||
Chassis | Safety | Automotive | |||||||||||||||||||||||||
Systems | Systems | Electronics | Components | ||||||||||||||||||||||||
Segment | Segment | Segment | Segment | Corporate | Total | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
For the three months ended June 27, 2014: | |||||||||||||||||||||||||||
Severance and other charges - net | $ | 3 | $ | 2 | $ | - | $ | 1 | $ | - | $ | 6 | |||||||||||||||
Total restructuring charges and asset impairments | $ | 3 | $ | 2 | $ | - | $ | 1 | $ | - | $ | 6 | |||||||||||||||
For the three months ended June 28, 2013: | |||||||||||||||||||||||||||
Severance and other charges | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | |||||||||||||||
Total restructuring charges and asset impairments | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | |||||||||||||||
For the six months ended June 27, 2014: | |||||||||||||||||||||||||||
Severance and other charges - net | $ | 10 | $ | 2 | $ | - | $ | 2 | $ | - | $ | 14 | |||||||||||||||
Asset impairments related to restructuring activities | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 22 | $ | 2 | $ | - | $ | 2 | $ | - | $ | 26 | |||||||||||||||
For the six months ended June 28, 2013: | |||||||||||||||||||||||||||
Severance and other charges | $ | 17 | $ | 27 | $ | - | $ | -6 | $ | - | $ | 38 | |||||||||||||||
Total restructuring charges and asset impairments | $ | 17 | $ | 27 | $ | - | $ | -6 | $ | - | $ | 38 | |||||||||||||||
Movement of the Restructuring Reserves for Severance and Other Charges [Table Text Block] | ' | ||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||
June 27, | June 28, | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Beginning balance | $ | 88 | $ | 121 | |||||||||||||||||||||||
Current period accruals, net of changes in estimates | 14 | 38 | |||||||||||||||||||||||||
Used for purposes intended | -34 | -43 | |||||||||||||||||||||||||
Effects of foreign currency translation | -1 | -1 | |||||||||||||||||||||||||
Ending balance | $ | 67 | $ | 115 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||
Share-Based Compensation [Abstract] | ' | |||||||||||||||||
Share Based Compensation Expense By Type [Table Text Block] | ' | |||||||||||||||||
Share-based compensation expense recognized for the Plan was as follows: | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 27, | June 28, | June 27, | June 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Stock options and SSARs | $ | 3 | $ | 4 | $ | 5 | $ | 6 | ||||||||||
RSUs | 7 | 6 | 12 | 15 | ||||||||||||||
Performance Units | 1 | - | 2 | - | ||||||||||||||
Total share-based compensation expense | $ | 11 | $ | 10 | $ | 19 | $ | 21 |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||
Schedule Of Segment Reporting Information By Segment [Table Text Block] | ' | ||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 27, | June 28, | June 27, | June 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Sales to external customers: | |||||||||||||||||||
Chassis Systems | $ | 2,954 | $ | 2,985 | $ | 5,825 | $ | 5,710 | |||||||||||
Occupant Safety Systems | 905 | 856 | 1,770 | 1,700 | |||||||||||||||
Electronics | 241 | 184 | 460 | 346 | |||||||||||||||
Automotive Components | 493 | 489 | 980 | 971 | |||||||||||||||
Total sales to external customers | $ | 4,593 | $ | 4,514 | $ | 9,035 | $ | 8,727 | |||||||||||
Intersegment sales: | |||||||||||||||||||
Chassis Systems | $ | 4 | $ | 4 | $ | 7 | $ | 8 | |||||||||||
Occupant Safety Systems | 38 | 33 | 75 | 66 | |||||||||||||||
Electronics | 144 | 142 | 293 | 272 | |||||||||||||||
Automotive Components | 19 | 19 | 38 | 37 | |||||||||||||||
Total intersegment sales | $ | 205 | $ | 198 | $ | 413 | $ | 383 | |||||||||||
Total segment sales: | |||||||||||||||||||
Chassis Systems | $ | 2,958 | $ | 2,989 | $ | 5,832 | $ | 5,718 | |||||||||||
Occupant Safety Systems | 943 | 889 | 1,845 | 1,766 | |||||||||||||||
Electronics | 385 | 326 | 753 | 618 | |||||||||||||||
Automotive Components | 512 | 508 | 1,018 | 1,008 | |||||||||||||||
Total segment sales | $ | 4,798 | $ | 4,712 | $ | 9,448 | $ | 9,110 | |||||||||||
Earnings before taxes: | |||||||||||||||||||
Chassis Systems | $ | 243 | $ | 246 | $ | 435 | $ | 412 | |||||||||||
Occupant Safety Systems | 89 | 80 | 154 | 112 | |||||||||||||||
Electronics | 36 | 32 | 72 | 58 | |||||||||||||||
Automotive Components | 39 | 43 | 82 | 88 | |||||||||||||||
Segment earnings before taxes | 407 | 401 | 743 | 670 | |||||||||||||||
Corporate expense and other | -24 | -17 | -52 | -32 | |||||||||||||||
Financing costs | -26 | -34 | -57 | -64 | |||||||||||||||
Loss on retirement of debt — net | - | -5 | - | -5 | |||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 10 | 12 | 20 | 23 | |||||||||||||||
Earnings before income taxes | $ | 367 | $ | 357 | $ | 654 | $ | 592 | |||||||||||
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, 2013 | |
Description of Business [Abstract] | ' |
Sales to major OEM | 83.00% |
Basis_of_Presentation_Net_Earn
Basis of Presentation - Net Earnings Attributable to TRW and the Weighted Average Shares Outstanding (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Net earnings attributable to TRW | $265 | $248 | $464 | $410 |
Interest expense on exchangeable notes, net of tax | 1 | 1 | 2 | 2 |
Amortization of discount on exchangeable notes, net of tax | 1 | 1 | 2 | 2 |
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $267 | $250 | $468 | $414 |
Basic: | ' | ' | ' | ' |
Weighted average shares outstanding | 110.8 | 118.9 | 112 | 119.2 |
Basic earnings per share | $2.39 | $2.09 | $4.14 | $3.44 |
Diluted: | ' | ' | ' | ' |
Weighted average shares outstanding | 110.8 | 118.9 | 112 | 119.2 |
Effect of dilutive stock options, RSUs and SSARs | 1.6 | 1 | 1.6 | 1.2 |
Shares applicable to exchangeable notes | 5 | 5.9 | 5 | 5.9 |
Diluted weighted average shares outstanding | 117.4 | 125.8 | 118.6 | 126.3 |
Diluted earnings per share | $2.27 | $1.99 | $3.95 | $3.28 |
Basis_of_Presentation_Movement
Basis of Presentation - Movement in the Product Warranty Liability (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 |
Basis of Presentation [Abstract] | ' | ' |
Beginning balance | $152 | $140 |
Current period accruals, net of changes in estimates | 21 | 26 |
Used for purposes intended | -21 | -20 |
Effects of foreign currency translation | -2 | -3 |
Ending balance | $150 | $143 |
Basis_of_Presentation_Changes_
Basis of Presentation - Changes in Equity (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Beginning balance of equity | $4,198 | $3,870 | $4,396 | $3,769 |
Net earnings | 275 | 260 | 484 | 433 |
Total other comprehensive earnings (losses) | 53 | -87 | 56 | -161 |
Dividends paid to noncontrolling interest | 0 | -13 | -3 | -15 |
Changes related to share-based compensation | 13 | 13 | 6 | 27 |
Value of capital stock repurchased | 0 | -190 | -400 | -200 |
Ending balance of equity | 4,539 | 3,853 | 4,539 | 3,853 |
Parent | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Beginning balance of equity | 3,991 | 3,671 | 4,194 | 3,578 |
Net earnings | 265 | 248 | 464 | 410 |
Total other comprehensive earnings (losses) | 55 | -88 | 60 | -161 |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 |
Changes related to share-based compensation | 13 | 13 | 6 | 27 |
Value of capital stock repurchased | 0 | -190 | -400 | -200 |
Ending balance of equity | 4,324 | 3,654 | 4,324 | 3,654 |
Noncontrolling Interest | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Beginning balance of equity | 207 | 199 | 202 | 191 |
Net earnings | 10 | 12 | 20 | 23 |
Total other comprehensive earnings (losses) | -2 | 1 | -4 | 0 |
Dividends paid to noncontrolling interest | 0 | -13 | -3 | -15 |
Changes related to share-based compensation | 0 | 0 | 0 | 0 |
Value of capital stock repurchased | 0 | 0 | 0 | 0 |
Ending balance of equity | $215 | $199 | $215 | $199 |
Basis_of_Presentation_Changes_1
Basis of Presentation- Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Mar. 28, 2014 | Dec. 31, 2013 | Mar. 29, 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 | $8 | ($16) | $8 | ($16) | ($16) | ($16) | $8 | $10 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -406 | -577 | -406 | -577 | -402 | -405 | -544 | -559 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 78 | -34 | 78 | -34 | 43 | 41 | -3 | 83 |
Total Accumulated other comprehensive earnings (losses) | -320 | -627 | -320 | -627 | -375 | -380 | -539 | -466 |
OCI before reclassifications, cash flow hedges | 23 | -23 | 20 | -25 | ' | ' | ' | ' |
OCI before reclassifications, retirement obligations | -5 | -37 | -3 | -27 | ' | ' | ' | ' |
OCI before reclassifications, foreign currency translation | 35 | -31 | 37 | -117 | ' | ' | ' | ' |
OCI before reclassifications, total | 53 | -91 | 54 | -169 | ' | ' | ' | ' |
Amounts reclassified from AOCI, cash flow hedges | 1 | -1 | 4 | -1 | ' | ' | ' | ' |
Amounts reclassified from AOCI, retirement obligations | 1 | 4 | 2 | 9 | ' | ' | ' | ' |
Amounts reclassified from AOCI, total | 2 | 3 | 6 | 8 | ' | ' | ' | ' |
Current period OCI, cash flow hedges | 24 | -24 | 24 | -26 | ' | ' | ' | ' |
Current period OCI, Retirement obligations | -4 | -33 | -1 | -18 | ' | ' | ' | ' |
Current Period OCI, foreign currency translation | 35 | -31 | 37 | -117 | ' | ' | ' | ' |
Current period OCI, total | 55 | -88 | 60 | -161 | ' | ' | ' | ' |
Actuarial gains or losses reclassified from AOCI | 5 | 10 | 9 | 22 | ' | ' | ' | ' |
Prior service costs reclassified from AOCI | 3 | 4 | 6 | 9 | ' | ' | ' | ' |
Tax amount of retirement obligations reclassified from AOCI | $1 | $2 | $1 | $4 | ' | ' | ' | ' |
Inventories_Detail
Inventories (Detail) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Finished products and work in process | $553 | $499 |
Raw materials and supplies | 566 | 520 |
Total inventories | $1,119 | $1,019 |
Investment_in_Joint_Venture_Af1
Investment in Joint Venture Affiliate (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 |
Investment in Joint Venture Affiliate [Abtract] | ' | ' |
Investment in non-consolidated joint venture assets | $6 | $0 |
Non-consolidated Joint Venture Investment Ownership Percentage | 30.00% | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 27, 2014 |
Goodwill [Line Items] | ' |
Beginning Balance | $1,760 |
Effects of foreign currency translation | -1 |
Ending Balance | 1,759 |
Chassis Systems [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 1,071 |
Effects of foreign currency translation | 0 |
Ending Balance | 1,071 |
Occupant Safety Systems [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 541 |
Effects of foreign currency translation | -1 |
Ending Balance | 540 |
Electronics [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 148 |
Effects of foreign currency translation | 0 |
Ending Balance | 148 |
Automotive Components [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 0 |
Effects of foreign currency translation | 0 |
Ending Balance | $0 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets and Related Accumulated Amortization (Detail) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Intangible Assets by Major Class [Line Items] | ' | ' |
Intangible Assets Gross Excluding Goodwill | $382 | $383 |
Intangible Assets Net Excluding Goodwill | 289 | 292 |
Indefinite-lived intangible: | ' | ' |
Trademarks | 264 | 264 |
Developed Technology And Other Intangible Assets [Member] | ' | ' |
Definite-lived intangible assets: | ' | ' |
Definite-lived intangibles Gross Carrying amount | 118 | 119 |
Definite-lived intangibles Accumulated Amortization | -93 | -91 |
Definite-lived intangibles Net Carrying Amount | $25 | $28 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Expected Amortization Expense (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 27, 2014 |
Goodwill and Intangible Assets [Abstract] | ' |
Remainder of Current Fiscal Year | $2 |
Fiscal Year Two | 3 |
Fiscal Year Three and Beyond | $20 |
Other_Income_Expense_Net_Detai
Other (Income) Expense - Net (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Other (Income) Expense - Net [Abstract] | ' | ' | ' | ' |
Net provision for bad debts | $3 | $0 | $4 | $2 |
Net gain on sales of assets and divestitures | 0 | 0 | 0 | -1 |
Foreign currency exchange (gains) losses | 5 | 8 | 13 | 6 |
Royalty and grant income | -6 | -5 | -9 | -6 |
Miscellaneous other (income) expense | 7 | -5 | 7 | -7 |
Other (income) expense - net | $9 | ($2) | $15 | ($6) |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income tax expense | $92 | $97 | $170 | $159 |
Earnings before income taxes | 367 | 357 | 654 | 592 |
Income tax expense (benefit), tax adjustments, settlements, and unusual provisions | -6 | -4 | -6 | ' |
Tax benefit related to enactment of tax legislation | ' | ' | ' | -12 |
Net of discrete tax items [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax benefit related to enactment of tax legislation | ' | ' | ' | ($8) |
Pension_Plans_and_Postretireme2
Pension Plans and Postretirement Benefits Other Than Pensions - Components of Net Pension (Income) Cost (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Pension Plans - U.S. | ' | ' | ' | ' |
Pension Plan [Line Items] | ' | ' | ' | ' |
Service cost | $1 | $1 | $1 | $1 |
Interest cost on projected benefit obligations | 10 | 10 | 19 | 21 |
Expected return on plan assets | -13 | -14 | -25 | -29 |
Amortization | 2 | 6 | 4 | 13 |
Defined benefit plan, net (income) cost | 0 | 3 | -1 | 6 |
United Kingdom Foreign Pension Plans Defined Benefit [Member] | ' | ' | ' | ' |
Pension Plan [Line Items] | ' | ' | ' | ' |
Service cost | 0 | 0 | 0 | 0 |
Interest cost on projected benefit obligations | 53 | 47 | 105 | 94 |
Expected return on plan assets | -87 | -78 | -173 | -156 |
Amortization | 0 | 0 | 0 | 0 |
Defined benefit plan, net (income) cost | -34 | -31 | -68 | -62 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | ' | ' | ' | ' |
Pension Plan [Line Items] | ' | ' | ' | ' |
Service cost | 5 | 5 | 11 | 11 |
Interest cost on projected benefit obligations | 8 | 9 | 18 | 18 |
Expected return on plan assets | -4 | -5 | -9 | -10 |
Amortization | 3 | 6 | 6 | 10 |
Defined benefit plan, net (income) cost | $12 | $15 | $26 | $29 |
Pension_Plans_and_Postretireme3
Pension Plans and Postretirement Benefits Other Than Pensions - Components of Net OPEB (Income) Cost (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Postretirement Benefits Other than Pension - U.S. | ' | ' | ' | ' |
Pension Plan [Line Items] | ' | ' | ' | ' |
Interest cost on projected benefit obligations | $4 | $4 | $8 | $7 |
Amortization | -3 | -3 | -5 | -7 |
Settlements | 0 | -2 | 0 | -6 |
Defined benefit plan, net (income) cost | 1 | -1 | 3 | -6 |
Postretirement Benefits Other than Pension - Rest of World | ' | ' | ' | ' |
Pension Plan [Line Items] | ' | ' | ' | ' |
Interest cost on projected benefit obligations | 1 | 1 | 2 | 2 |
Amortization | -1 | -2 | -3 | -2 |
Settlements | 0 | 0 | 0 | 0 |
Defined benefit plan, net (income) cost | $0 | ($1) | ($1) | $0 |
Fair_Value_Measurements_Recurr
Fair Value Measurements - Recurring and Nonrecurring Basis (Detail) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 |
In Millions, unless otherwise specified | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Nonrecurring |
Current Assets [Member] | Current Assets [Member] | Noncurrent Assets [Member] | Noncurrent Assets [Member] | Current Liabilities [Member] | Current Liabilities [Member] | Noncurrent Liabilities [Member] | Noncurrent Liabilities [Member] | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency contracts assets | $12 | $6 | $10 | $0 | ' | ' | ' | ' | ' |
Foreign currency contracts liabilities | ' | ' | ' | ' | 3 | 5 | 1 | 9 | ' |
Fixed asset impairments | ' | ' | ' | ' | ' | ' | ' | ' | $12 |
Financial_Instruments_Not_Carr
Financial Instruments - Not Carried at Fair Value (Detail) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term debt | $406 | $159 |
Exchageable Notes | 137 | 134 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term debt | 406 | 159 |
Long-term debt | 1,349 | 1,821 |
Exchageable Notes | 137 | 134 |
Portion At Fair Value Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term debt | 406 | 159 |
Exchageable Notes | 448 | 375 |
Portion At Fair Value Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Rate [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt | $1,466 | $1,884 |
Financial_Instruments_Detail
Financial Instruments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Mar. 29, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | |
Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Foreign Exchange 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] | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional value | ' | ' | ' | ' | $2,600,000,000 | ' | ' | ' | ' |
Gains included in OCI expected to be reclassified into earnings in the next twelve months, net of tax | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' |
Effective portion of the gain (loss) on derivatives designated as cash flow hedges that was recognized in OCI | ' | ' | ' | ' | ' | 28,000,000 | -33,000,000 | 25,000,000 | -33,000,000 |
Effective portion of gain (loss) on hedges reclassified from OCI into the statements of earnings | ' | ' | ' | ' | ' | -2,000,000 | 1,000,000 | -5,000,000 | 1,000,000 |
Gain (loss) recognized in current earnings | ($4,000,000) | ($2,000,000) | ($3,000,000) | ($3,000,000) | ' | ' | ' | ' | ' |
Financial_Instruments_Offsetti
Financial Instruments - Offsetting of Derivative Assets and Liabilities (Detail) (Foreign Exchange Contract, USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Foreign Exchange Contract | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Derivative assets, gross amount recognized | $54 | $42 |
Derivative assets, gross amounts offset | -32 | -36 |
Derivative asets, net amounts reported | 22 | 6 |
Derivative liabilities, gross amounts recognized | 36 | 50 |
Derivative liabilities, gross amounts offset | -32 | -36 |
Derivative liabilities, net amounts reported | $4 | $14 |
Debt_Total_Outstanding_Debt_De
Debt - Total Outstanding Debt (Detail) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Line Items] | ' | ' |
Short-term debt | $406 | $159 |
Long-term debt: | ' | ' |
Exchageable Notes | 137 | 134 |
Revolving Credit Facility | 0 | 0 |
Capitalized leases | 17 | 18 |
Other borrowings | 87 | 90 |
Total long-term debt | 1,486 | 1,955 |
Less current portion | 37 | 482 |
Long-term debt, net of current portion | 1,449 | 1,473 |
Senior Notes 6.375% Due 2014 [Member] | ' | ' |
Long-term debt: | ' | ' |
Senior Notes | 0 | 234 |
Senior Notes 4.50% Due 2021 [Member] | ' | ' |
Long-term debt: | ' | ' |
Senior Notes | 400 | 400 |
Senior Notes 7.00% Due 2014 [Member] | ' | ' |
Long-term debt: | ' | ' |
Senior Notes | 0 | 233 |
Senior Notes 7.25% Due 2017 [Member] | ' | ' |
Long-term debt: | ' | ' |
Senior Notes | 445 | 446 |
Senior Notes 4.45% Due 2023 [Member] | ' | ' |
Long-term debt: | ' | ' |
Senior Notes | $400 | $400 |
Debt_Senior_Notes_Detail
Debt - Senior Notes (Detail) | 6 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 27, 2014 | Mar. 31, 2007 | Feb. 28, 2013 | Nov. 30, 2013 |
Senior Notes 7.00% Due 2014 [Member] | Senior Notes 6.375% Due 2014 [Member] | Senior Notes 7.25% Due 2017 [Member] | Senior Notes 4.50% Due 2021 [Member] | Senior Notes 4.45% Due 2023 [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | |
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' |
Face amount | ' | ' | $600 | $400 | $400 |
Interest rate | ' | ' | 7.25% | 4.50% | 4.45% |
Senior Notes Matured and Repaid | $233 | € 170 | ' | ' | ' |
Debt_Exchangable_Senior_Notes_
Debt - Exchangable Senior Notes (Detail) (Exchangeable Senior Unsecured Notes Three Point Five Percent Due Twenty Fifteen [Member], USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Nov. 30, 2009 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Dec. 31, 2013 |
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 | ' | ' | ' | ' | ' |
Effective yield | 9.00% | ' | ' | ' | ' | ' |
Debt discount | ' | 11 | ' | 11 | ' | 14 |
Interest expense recognized | ' | 3 | 4 | 6 | 7 | ' |
Interest expense on exchangeable notes, excluding amortization | ' | $2 | $2 | $3 | $3 | ' |
Exchangeable notes sales price condition | $38.41 | ' | ' | ' | ' | ' |
Debt_Senior_Credit_Facilities_
Debt - Senior Credit Facilities (Detail) (USD $) | 6 Months Ended | |
In Billions, unless otherwise specified | Jun. 27, 2014 | Sep. 28, 2012 |
Debt Disclosure [Line Items] | ' | ' |
Revolving credit facility, facility size | ' | $1.40 |
Commitment fee | 0.25% | ' |
Euro Denominated [Member] | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Applicable margin | 1.25% | ' |
Base Rate [Member] | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Applicable margin | 0.25% | ' |
Debt_Other_Borrowings_Detail
Debt - Other Borrowings (Detail) (USD $) | Jun. 27, 2014 |
In Millions, unless otherwise specified | |
Debt [Abstract] | ' |
Short-term borrowings under uncommited credit agreements | $397 |
Restructuring_Charges_and_Asse2
Restructuring Charges and Asset Impairments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and other charges | $6 | $1 | $14 | $38 |
Asset impairments related to restructuring activities | 0 | ' | 12 | 0 |
Total restructuring charges and asset impairments | 6 | 1 | 26 | 38 |
Chassis Systems [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and other charges | 3 | 1 | 10 | 17 |
Asset impairments related to restructuring activities | 0 | ' | 12 | ' |
Total restructuring charges and asset impairments | 3 | 1 | 22 | 17 |
Occupant Safety Systems [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and other charges | 2 | 0 | 2 | 27 |
Asset impairments related to restructuring activities | 0 | ' | 0 | ' |
Total restructuring charges and asset impairments | 2 | 0 | 2 | 27 |
Automotive Components [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and other charges | 1 | 0 | 2 | -6 |
Asset impairments related to restructuring activities | 0 | ' | 0 | ' |
Total restructuring charges and asset impairments | 1 | 0 | 2 | -6 |
Electronics [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and other charges | 0 | 0 | 0 | 0 |
Asset impairments related to restructuring activities | 0 | ' | 0 | ' |
Total restructuring charges and asset impairments | 0 | 0 | 0 | 0 |
Corporate [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and other charges | 0 | 0 | 0 | 0 |
Asset impairments related to restructuring activities | 0 | ' | 0 | ' |
Total restructuring charges and asset impairments | $0 | $0 | $0 | $0 |
Restructuring_Charges_and_Asse3
Restructuring Charges and Asset Impairments - Movement of the Restructuring Reserves for Severance and Other Charges (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 |
Restructuring Charges And Asset Impairments [Abstract] | ' | ' |
Beginning balance | $88 | $121 |
Current period accruals, net of changes in estimates | 14 | 38 |
Used for purposes intended, restructuring | 34 | 43 |
Effects of foreign currency translation and transfers | -1 | -1 |
Ending balance | 67 | 115 |
Restructuring reserve expected to be paid within one year | $40 | ' |
Capital_Stock_Detail
Capital Stock (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Jun. 27, 2014 | |
$2 Billion Share Repurchase Program [Member] | Anti Dilution Program [Member] | ASR March 2014 [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 | 110,884,083 | ' | 110,884,083 | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | 3,900,000 | ' |
Value of capital stock repurchased | $0 | $190,000,000 | $400,000,000 | $200,000,000 | ' | ' | $400,000,000 | ' |
Stock repurchase program authorized amount | ' | ' | ' | ' | $2,000,000,000 | ' | ' | ' |
Stock repurchse program authorized shares | ' | ' | ' | ' | ' | 1,500,000 | ' | ' |
ShareBased_Compensation_Detail
Share-Based Compensation (Detail) (USD $) | 0 Months Ended | 6 Months Ended | |
13-May-14 | Feb. 21, 2014 | Jun. 27, 2014 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Common stock available for issuance under the Plan | ' | ' | 3,349,736 |
Stock-Settled Stock Appreciation Rights [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Equity instruments other than options granted | ' | 850,900 | ' |
Equity instruments other than options grant date fair market value | ' | 82.5 | ' |
Maximum Value at Exercise | ' | 130 | ' |
Equity instruments other than options outstanding | ' | ' | 3,618,952 |
Contractual term | ' | ' | '8 years |
Vesting period | ' | ' | '3 years |
Restricted Stock Units [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Equity instruments other than options granted | 14,742 | 284,723 | ' |
Equity instruments other than options outstanding | ' | ' | 693,699 |
Vesting period | ' | ' | '3 years |
Phantom Stock Units [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Equity instruments other than options granted | ' | 3,365 | ' |
Equity instruments other than options outstanding | ' | ' | 12,650 |
Vesting period | ' | ' | '3 years |
Stock Options [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Contractual term | ' | ' | '8 years |
Vesting period | ' | ' | '3 years |
Options outstanding | ' | ' | 252,197 |
Performance Units [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Equity instruments other than options granted | ' | 46,949 | ' |
Equity instruments other than options outstanding | ' | ' | 46,949 |
Performance Units [Member] | Minimum [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Total Shareholder Return Target Award Amount | ' | 0.00% | ' |
Performance Units [Member] | Maximum [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Total Shareholder Return Target Award Amount | ' | 150.00% | ' |
ShareBased_Compensation_Expens
Share-Based Compensation - Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' | ' |
Share based compensation expense | $11 | $10 | $19 | $21 |
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 | 4 | 5 | 6 |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' | ' |
Share based compensation expense | 7 | 6 | 12 | 15 |
Performance Units [Member] | ' | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' | ' |
Share based compensation expense | $1 | $0 | $2 | $0 |
Contingencies_Detail
Contingencies (Detail) (USD $) | Jun. 27, 2014 |
In Millions, unless otherwise specified | |
Contingencies [Abstract] | ' |
Reserves for environmental matters | $73 |
Northrop indemnification percentage | 50.00% |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | $4,593 | $4,514 | $9,035 | $8,727 |
Intersegment and Segment Sales | 4,798 | 4,712 | 9,448 | 9,110 |
Financing costs | -26 | -34 | -57 | -64 |
Loss on retirement of debt - net | 0 | -5 | 0 | -5 |
Net earnings attributable to noncontrolling interest, net of tax | 10 | 12 | 20 | 23 |
Earnings before income taxes | 367 | 357 | 654 | 592 |
Intersegment Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Intersegment and Segment Sales | 205 | 198 | 413 | 383 |
Chassis Systems [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 2,954 | 2,985 | 5,825 | 5,710 |
Intersegment and Segment Sales | 2,958 | 2,989 | 5,832 | 5,718 |
Segment earnings before taxes | 243 | 246 | 435 | 412 |
Chassis Systems [Member] | Intersegment Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Intersegment and Segment Sales | 4 | 4 | 7 | 8 |
Occupant Safety Systems [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 905 | 856 | 1,770 | 1,700 |
Intersegment and Segment Sales | 943 | 889 | 1,845 | 1,766 |
Segment earnings before taxes | 89 | 80 | 154 | 112 |
Occupant Safety Systems [Member] | Intersegment Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Intersegment and Segment Sales | 38 | 33 | 75 | 66 |
Electronics [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 241 | 184 | 460 | 346 |
Intersegment and Segment Sales | 385 | 326 | 753 | 618 |
Segment earnings before taxes | 36 | 32 | 72 | 58 |
Electronics [Member] | Intersegment Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Intersegment and Segment Sales | 144 | 142 | 293 | 272 |
Automotive Components [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 493 | 489 | 980 | 971 |
Intersegment and Segment Sales | 512 | 508 | 1,018 | 1,008 |
Segment earnings before taxes | 39 | 43 | 82 | 88 |
Automotive Components [Member] | Intersegment Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Intersegment and Segment Sales | 19 | 19 | 38 | 37 |
Operating Segments | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment earnings before taxes | 407 | 401 | 743 | 670 |
Corporate expense and other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Earnings before income taxes | ($24) | ($17) | ($52) | ($32) |