Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 09, 2015 | Jun. 27, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Central Index Key | 1267097 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | TRW | ||
Entity Registrant Name | TRW Automotive Holdings Corp. | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 114,972,298 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, par value | $0.01 | ||
Entity Public Float | $9.80 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Earnings [Abstract] | |||
Sales | $17,539 | $17,435 | $16,444 |
Cost of sales | 15,473 | 15,505 | 14,655 |
Gross profit | 2,066 | 1,930 | 1,789 |
Administrative and selling expenses | 669 | 607 | 594 |
Pension and postretirement benefit settlement and curtailment expenses | 790 | 31 | 52 |
Restructuring charges and asset impairments | 84 | 66 | 95 |
Transaction Costs | 20 | 0 | 0 |
Other (income) expense - net | 2 | -1 | -37 |
Operating income | 501 | 1,227 | 1,085 |
Interest expense - net | 109 | 132 | 111 |
Loss (gain) on retirement of debt - net | 7 | 20 | 6 |
Equity in earnings of affiliates, net of tax | -45 | -46 | -40 |
Earnings before income taxes | 430 | 1,121 | 1,008 |
Income tax (benefit) expense | 96 | 114 | -33 |
Net earnings | 334 | 1,007 | 1,041 |
Less: Net earnings attributable to noncontrolling interest, net of tax | 41 | 37 | 33 |
Net earnings attributable to TRW | $293 | $970 | $1,008 |
Basic earnings per share: | |||
Earnings per share | $2.62 | $8.25 | $8.24 |
Weighted average shares outstanding | 111.7 | 117.6 | 122.4 |
Diluted earnings per share: | |||
Earnings per share | $2.54 | $7.85 | $7.83 |
Weighted average shares outstanding | 118 | 124.6 | 129.7 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Earnings (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Consolidated Statement of Comprehensive Earnings | ||||||
Net earnings | $334 | $1,007 | $1,041 | |||
Other Comprehensive Earnings (Losses) | ||||||
Foreign currency translation | -277 | -37 | 72 | |||
Retirement obligations, net of tax | -96 | [1] | 154 | [1] | -260 | [1] |
Deferred cash flow hedges, net of tax | 3 | [2] | -26 | [2] | 58 | [2] |
Total other comprehensive earnings (losses) | -370 | 91 | -130 | |||
Total comprehensive earnings (losses) | -36 | 1,098 | 911 | |||
Less: Comprehensive Earnings attributable to noncontrolling interest | 30 | 42 | 38 | |||
Comprehensive earnings attributable to TRW | ($66) | $1,056 | $873 | |||
[1] | Tax on retirement obligations for the years ended December 31, 2014, 2013 and 2012 was $29 million, $(66) million, and $126 million, respectively. | |||||
[2] | Tax on deferred cash flow hedges for the years ended December 31, 2014, 2013 and 2012 was $6 million, $7 million, and $(19) million, respectively. |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Earnings (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statement of Comprehensive Earnings | |||
Tax on retirement obligations in OCI | $29 | ($66) | $126 |
Tax on deferred cash flow hedges in OCI | $6 | $7 | ($19) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,031 | $1,729 |
Accounts receivable - net | 2,432 | 2,478 |
Inventories | 972 | 1,019 |
Prepaid expenses and other current assets | 187 | 178 |
Deferred income taxes | 226 | 224 |
Assets held-for-sale | 252 | 0 |
Total current assets | 5,100 | 5,628 |
Property, plant and equipment - net | 2,645 | 2,718 |
Goodwill | 1,749 | 1,760 |
Intangible assets - net | 291 | 292 |
Pension assets | 663 | 1,059 |
Deferred income taxes | 336 | 316 |
Other assets | 510 | 479 |
Total assets | 11,294 | 12,252 |
Current liabilities: | ||
Short-term debt | 222 | 159 |
Current portion of long-term debt | 72 | 482 |
Trade accounts payable | 2,423 | 2,597 |
Accrued compensation | 253 | 285 |
Income taxes | 11 | 27 |
Other current liabilities | 1,259 | 1,205 |
Liabilities related to assets held-for-sale | 104 | 0 |
Total current liabilities | 4,344 | 4,755 |
Long-term debt | 1,284 | 1,473 |
Postretirement benefits other than pensions | 346 | 375 |
Pension benefits | 774 | 676 |
Deferred income taxes | 47 | 145 |
Long-term liabilities | 461 | 432 |
Total liabilities | 7,256 | 7,856 |
Stockholders' equity: | ||
Capital stock | 1 | 1 |
Paid-in-capital | 1,829 | 1,715 |
Retained earnings | 2,751 | 2,858 |
Accumulated other comprehensive earnings (losses) | -739 | -380 |
Total TRW stockholders' equity | 3,842 | 4,194 |
Noncontrolling interest | 196 | 202 |
Total equity | 4,038 | 4,396 |
Total liabilities and equity | $11,294 | $12,252 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net earnings | $334 | $1,007 | $1,041 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 444 | 430 | 409 |
Net pension and other postretirement benefits income and contributions | 356 | -244 | -224 |
Net gains on sales of assets and divestitures | 0 | 0 | -6 |
Amortization of debt issuance costs | 6 | 6 | 5 |
Net (gain) loss on retirement of debt | 7 | 20 | 6 |
Asset impairment charges | 19 | 9 | 4 |
Deferred income taxes | -94 | -47 | -204 |
Share-based compensation expense | 36 | 36 | 21 |
Exchangeable bond premium amortization | 7 | 10 | 7 |
Other - net | -27 | -21 | -32 |
Changes in assets and liabilities: | |||
Accounts receivable - net | -148 | -266 | 76 |
Inventories | -73 | -42 | -113 |
Trade accounts payable | 16 | 153 | 62 |
Prepaid expense and other assets | -69 | 3 | -47 |
Other liabilities | 140 | 72 | -49 |
Net cash provided by (used in) operating activities | 954 | 1,126 | 956 |
Investing Activities | |||
Capital expenditures, including other intangible assets | -694 | -735 | -623 |
Net proceeds from asset sales and divestitures | 3 | 1 | 15 |
Investment in non-consolidated joint venture assets | -17 | ||
Net cash provided by (used in) investing activities | -708 | -734 | -608 |
Financing Activities | |||
Change in short-term debt | 67 | 90 | 0 |
Proceeds from issuance of long-term debt, net of fees | 13 | 881 | 3 |
Fees paid to refinance credit facility | 0 | 0 | -9 |
Redemption of long-term debt | -501 | -340 | -86 |
Repurchase of capital stock | -400 | -520 | -268 |
Proceeds from exercise of stock options | 3 | 30 | 21 |
Dividends paid to noncontrolling interest | -36 | -31 | -46 |
Net cash provided by (used in) financing activities | -854 | 110 | -385 |
Effect of exchange rate changes on cash | -80 | 4 | 19 |
Change In Cash Held For Sale | -10 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | -698 | 506 | -18 |
Cash and cash equivalents at beginning of period | 1,729 | 1,223 | 1,241 |
Cash and cash equivalents at end of period | 1,031 | 1,729 | 1,223 |
Supplemental Cash Flow Information: | |||
Interest paid | 105 | 112 | 106 |
Income tax paid - net | $184 | $157 | $197 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock Including Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Parent [Member] | Noncontrolling Interest [Member] |
In Millions, except Share data | ||||||
Beginning balance at Dec. 31, 2011 | $3,139 | $1,603 | $1,668 | ($331) | $2,940 | $199 |
Beginning balance at Dec. 31, 2011 | 123,751,455 | |||||
Sale of common stock under stock option plans | 887,392 | |||||
Issuance of common stock upon vesting of restricted stock units and exercise of stock-settled stock appreciation rights | 345,691 | |||||
Repurchase of common stock (shares) | -5,612,491 | |||||
Net earnings | 1,041 | 1,008 | 1,008 | 33 | ||
Total other comprehensive earnings (losses) | -130 | -135 | -135 | 5 | ||
Cash dividends paid to noncontrolling interest | -46 | -46 | ||||
Sale of common stock under stock option plans | 21 | 21 | 21 | |||
Issuance of common stock upon vesting of restricted stock units and exercise of stock-settled stock appreciation rights | -10 | -10 | -10 | |||
Share-based compensation expense | 21 | 21 | 21 | |||
Excess tax benefits on share-based compensation | 1 | 1 | 1 | |||
Repurchase of common stock (value) | -268 | -268 | -268 | |||
Ending balance at Dec. 31, 2012 | 3,769 | 1,636 | 2,408 | -466 | 3,578 | 191 |
Ending balance at Dec. 31, 2012 | 119,372,047 | |||||
Sale of common stock under stock option plans | 1,269,207 | |||||
Issuance of common stock upon vesting of restricted stock units and exercise of stock-settled stock appreciation rights | 324,947 | |||||
Repurchase of common stock (shares) | -7,547,751 | |||||
Conversion of 3.5% exchangeable notes (shares) | 880,350 | |||||
Net earnings | 1,007 | 970 | 970 | 37 | ||
Total other comprehensive earnings (losses) | 91 | 86 | 86 | 5 | ||
Cash dividends paid to noncontrolling interest | -31 | -31 | ||||
Sale of common stock under stock option plans | 30 | 30 | 30 | |||
Issuance of common stock upon vesting of restricted stock units and exercise of stock-settled stock appreciation rights | -13 | -13 | -13 | |||
Share-based compensation expense | 36 | 36 | 36 | |||
Excess tax benefits on share-based compensation | 1 | 1 | 1 | |||
Repurchase of common stock (value) | -520 | -520 | -520 | |||
Conversion of 3.5% exchangeable notes (value) | 26 | 26 | 26 | |||
Ending balance at Dec. 31, 2013 | 4,396 | 1,716 | 2,858 | -380 | 4,194 | 202 |
Ending balance at Dec. 31, 2013 | 114,298,800 | |||||
Sale of common stock under stock option plans | 219,934 | |||||
Issuance of common stock upon vesting of restricted stock units and exercise of stock-settled stock appreciation rights | 632,467 | |||||
Repurchase of common stock (shares) | -4,541,201 | |||||
Conversion of 3.5% exchangeable notes (shares) | 3,937,079 | |||||
Net earnings | 334 | 293 | 293 | 41 | ||
Total other comprehensive earnings (losses) | -370 | -359 | -359 | -11 | ||
Cash dividends paid to noncontrolling interest | -36 | -36 | ||||
Sale of common stock under stock option plans | 3 | 3 | 3 | |||
Issuance of common stock upon vesting of restricted stock units and exercise of stock-settled stock appreciation rights | -44 | -44 | -44 | |||
Share-based compensation expense | 36 | 36 | 36 | |||
Excess tax benefits on share-based compensation | 2 | 2 | 2 | |||
Repurchase of common stock (value) | -400 | -400 | -400 | |||
Conversion of 3.5% exchangeable notes (value) | 117 | 117 | 117 | |||
Ending balance at Dec. 31, 2014 | $4,038 | $1,830 | $2,751 | ($739) | $3,842 | $196 |
Ending balance at Dec. 31, 2014 | 114,547,079 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Description Of Business [Abstract] | |
Description of Business | 1. Description of Business |
TRW Automotive Holdings Corp. (together with its subsidiaries, 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 2014, approximately 82% of the Company's end-customer sales were to major OEMs. |
Merger
Merger | 12 Months Ended |
Dec. 31, 2014 | |
Merger [Abstract] | |
Merger [Text Block] | 2. Merger |
On September 15, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with ZF Friedrichshafen AG, a stock corporation organized and existing under the laws of the Federal Republic of Germany (“ZF”), and MSNA, Inc., a Delaware corporation (“Merger Sub”) and a wholly owned subsidiary of ZF held directly by ZF North America, Inc. (“ZNA”), pursuant to which Merger Sub will be merged with and into the Company (the “ZF Merger”) with the Company surviving the ZF Merger as an indirect wholly owned subsidiary of ZF. At a special stockholders meeting held on November 19, 2014, the Company's stockholders adopted the Merger Agreement. | |
At the effective time of the ZF Merger, each share of the Company's common stock issued and outstanding (other than any shares of Company common stock held by ZF, ZNA, Merger Sub or any other wholly owned subsidiary of ZF, treasury shares held by the Company and shares owned by stockholders who have properly made and not withdrawn a demand for appraisal rights under Delaware law) will be converted into the right to receive $105.60 in cash, without interest (the “Merger Consideration”). In addition, at the effective time of the ZF Merger, (i) all then-outstanding Company stock options, restricted stock units (“RSUs”), phantom stock units (“PSUs”) and performance share units (“Performance Units,” which will vest at the “maximum level” of performance), whether vested or unvested, will be converted into the right to receive the Merger Consideration, less the exercise price of such awards, if any, and (ii) all then-outstanding Company stock-settled stock appreciation rights (“SSARs”), whether vested or unvested, will be converted into the right to receive an amount in cash equal to the excess of the lesser of the Merger Consideration and the “maximum value” of such stock appreciation right over the fair market value per share at the relevant grant date. The consummation of the ZF Merger is subject to the receipt of antitrust approvals in the United States and certain other jurisdictions and other customary closing conditions. The transaction is expected to close in the first half of 2015. If completed, the ZF Merger will result in the Company becoming a wholly owned subsidiary of ZF and its shares will no longer be listed on any public market. | |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Basis of Presentation and Summary of Significant Acconting Policies [Abstract] | ||||||||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | 3. Basis of Presentation and Summary of Significant Accounting Policies | |||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||
The consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). | ||||||||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||||||
Principles of Consolidation. The consolidated financial statements reflect the financial position and operating results of the Company, including wholly owned subsidiaries and investees that the Company controls. Investments in entities that the Company does not control, but has the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. Investments in entities in which the Company does not have the ability to exercise significant influence are accounted for under the cost method. Noncontrolling interests in consolidated subsidiaries in the consolidated balance sheets represent minority stockholders' proportionate share of the equity in such subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | ||||||||||||||||||||
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and reported amounts of revenues and expenses in the consolidated statements of earnings. Considerable judgment is often involved in making these determinations; the use of different assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results could differ from those estimates. | ||||||||||||||||||||
Foreign Currency. The financial statements of foreign subsidiaries are translated to U.S. dollars at end-of-period exchange rates for assets and liabilities and at an average exchange rate for each period for revenues and expenses. Translation adjustments for those subsidiaries whose local currency is their functional currency are recorded as a component of accumulated other comprehensive earnings (losses) in stockholders' equity. Transaction gains and losses arising from fluctuations in foreign currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in earnings as incurred, except for those transactions which hedge purchase commitments and for those intercompany balances which are designated as being of a long-term investment nature. | ||||||||||||||||||||
Revenue Recognition. Sales are recognized when there is persuasive evidence of a sales agreement, the delivery of goods has occurred, the sales price is fixed or determinable and collection of related billings is reasonably assured. Sales are recorded upon shipment of product to customers and transfer of title and risk of loss under standard commercial terms (typically F.O.B. shipping point). In those limited instances where other terms are negotiated and agreed, revenue is recorded when title and risk of loss are transferred to the customer. | ||||||||||||||||||||
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, RSUs, SSARs and Performance Units. Further, if the inclusion of shares potentially issuable for the Company's 3.50% exchangeable senior unsecured notes (see Note 13) 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 grant date fair market value per share of the Company's stock for 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: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Net earnings attributable to TRW | $ | 293 | $ | 970 | $ | 1,008 | ||||||||||||||
Interest expense on exchangeable notes, net of tax | 3 | 4 | 4 | |||||||||||||||||
Amortization of discount on exchangeable notes, net of tax | 4 | 4 | 4 | |||||||||||||||||
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $ | 300 | $ | 978 | $ | 1,016 | ||||||||||||||
Basic: | ||||||||||||||||||||
Weighted average shares outstanding | 111.7 | 117.6 | 122.4 | |||||||||||||||||
Basic earnings per share | $ | 2.62 | $ | 8.25 | $ | 8.24 | ||||||||||||||
Diluted: | ||||||||||||||||||||
Weighted average shares outstanding | 111.7 | 117.6 | 122.4 | |||||||||||||||||
Effect of dilutive stock options, RSUs and SSARs | 1.6 | 1.3 | 1.4 | |||||||||||||||||
Shares applicable to exchangeable notes | 4.7 | 5.7 | 5.9 | |||||||||||||||||
Diluted weighted average shares outstanding | 118 | 124.6 | 129.7 | |||||||||||||||||
Diluted earnings per share | $ | 2.54 | $ | 7.85 | $ | 7.83 | ||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the number of securities excluded from the calculation of diluted earnings per share because the inclusion of such securities in the calculation would have been anti-dilutive was approximately 0.4 million, 0.8 million, and 2.1 million, respectively. | ||||||||||||||||||||
Cash and Cash Equivalents. Cash and cash equivalents include all highly liquid investments with remaining maturity dates of three months or less at time of purchase. | ||||||||||||||||||||
Accounts Receivable. Receivables are stated at amounts estimated by management to be the net realizable value. An allowance for doubtful accounts is recorded when it is probable amounts will not be collected based on specific identification of customer circumstances or age of the receivable. The allowance for doubtful accounts was $26 million and $29 million as of December 31, 2014 and 2013, respectively. Accounts receivable are written off when it becomes apparent such amounts will not be collected. Collateral is not typically required, nor is interest charged on accounts receivable balances. | ||||||||||||||||||||
Inventories. Inventories are stated at the lower of cost or market, with cost determined by the first-in, first-out (FIFO) method. Cost includes the cost of materials, direct labor, in-bound freight and the applicable share of manufacturing overhead. | ||||||||||||||||||||
Property, Plant and Equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Generally, estimated useful lives are as follows: | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
Useful Lives | ||||||||||||||||||||
Buildings | 30 to 40 years | |||||||||||||||||||
Machinery and equipment | 5 to 10 years | |||||||||||||||||||
Computers and capitalized software | 3 to 5 years | |||||||||||||||||||
Depreciation is computed over the assets' estimated useful lives, using the straight-line method for the majority of depreciable assets. Amortization expense for assets held under capital leases is included in depreciation expense. | ||||||||||||||||||||
Product Tooling. Product tooling is tooling that is limited to the manufacture of a specific part or parts of the same basic design. Product tooling includes dies, patterns, molds and jigs. Customer-owned tooling for which reimbursement was contractually guaranteed by the customer is classified in other assets on the consolidated balance sheets. When contractually guaranteed charges are approved for billing to the customer, such charges are reclassified into accounts receivable. Tooling owned by the Company is capitalized as property, plant and equipment, and amortized as cost of sales over its estimated economic life, not to exceed five years. | ||||||||||||||||||||
Pre-production Costs. Pre-production engineering and research and development costs for which the customer does not contractually guarantee reimbursement are expensed as incurred. | ||||||||||||||||||||
Goodwill and Other Intangible Assets. The Company performs either a quantitative or qualitative assessment of goodwill for impairment on an annual basis or more frequently if an event occurs or circumstances indicate the carrying amount may be impaired. Goodwill impairment testing is performed at the reporting unit level. To quantitatively test goodwill for impairment, the fair value of each reporting unit is determined and compared to the carrying value. If the carrying value exceeds the fair value, then impairment may exist and further evaluation is required. The qualitative assessment considers several factors at the reporting unit level including the excess of fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market and industry metrics, actual performance compared to forecasted performance, and our current outlook on the business. If the qualitative assessment indicates it is more likely than not that goodwill is impaired, the reporting unit is quantitatively tested for impairment. | ||||||||||||||||||||
Other indefinite-lived intangible assets are subject to impairment analysis annually. Indefinite-lived intangible assets are tested for impairment by comparing the fair value to the carrying value. If the carrying value exceeds the fair value, the asset is adjusted to fair value. Definite-lived intangible assets are amortized over their estimated useful lives, and tested for impairment in accordance with the methodology discussed in “Asset Impairment Losses.” | ||||||||||||||||||||
Asset Impairment Losses. Asset impairment losses are recorded on long-lived assets and definite-lived intangible assets when events and circumstances indicate that such assets may be impaired and the projected undiscounted net cash flows to be generated by those assets are less than their carrying amounts. If estimated future undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are adjusted to their fair values. Fair value is determined using appraisals or discounted cash flow calculations. | ||||||||||||||||||||
Environmental Costs. Costs related to environmental assessments and remediation efforts at current operating facilities, previously owned or operated facilities, and U.S. Environmental Protection Agency Superfund or other waste site locations are accrued when it is probable that a liability has been incurred and the amount of that liability can be reasonably estimated. Estimated costs are recorded at undiscounted amounts, based on experience and assessments, and are regularly evaluated. The liabilities are recorded in other current liabilities and long-term liabilities in the consolidated balance sheets. | ||||||||||||||||||||
Debt Issuance Costs. The costs related to the issuance of long-term debt are deferred and amortized into interest expense over the life of each respective debt issuance. Deferred amounts associated with debt extinguished prior to maturity are expensed upon extinguishment as a loss on retirement of debt. | ||||||||||||||||||||
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: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Beginning balance | $ | 152 | $ | 140 | ||||||||||||||||
Current period accruals, net of changes in estimates | 53 | 58 | ||||||||||||||||||
Liabilities held-for-sale | -2 | - | ||||||||||||||||||
Used for purposes intended | -40 | -47 | ||||||||||||||||||
Effects of foreign currency translation | -9 | 1 | ||||||||||||||||||
Ending balance | $ | 154 | $ | 152 | ||||||||||||||||
Product Recall. Recall costs typically include the cost of the product being replaced, customer cost of the recall and labor to remove and replace the defective part. Recall costs are recorded based on management estimates developed utilizing actuarially established loss projections based on historical claims data. Based on this actuarial estimation methodology, the Company accrues for expected but unannounced recalls when revenues are recognized upon the shipment of product. In addition, as recalls are announced, the Company reviews the actuarial estimation methodology and makes the appropriate adjustments to the accrual, if necessary. | ||||||||||||||||||||
Research and Development. Research and development programs include research and development for commercial products. Costs for such programs are expensed as incurred. Any reimbursements received from customers are netted against such expenses. Research and development expenses were $230 million, $193 million, and $164 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
Shipping and Handling. Shipping costs include payments to third-party shippers to move products to customers. Handling costs include costs from the point the products were removed from finished goods inventory to when provided to the shipper. Shipping and handling costs are expensed as incurred as cost of sales. | ||||||||||||||||||||
Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized to reduce the deferred tax assets to the amount management believes is more likely than not to be realized. | ||||||||||||||||||||
Financial Instruments. Gains or losses on derivative instruments that have been designated and qualify as hedges of the exposure to changes in the fair value of an asset or a liability, as well as the offsetting gain or loss on the hedged item, are recognized in net earnings during the period of the change in fair values. For derivative instruments that have been designated and qualify as hedges of the exposure to variability in expected future cash flows, the gain or loss on the derivative is initially reported as a component of other comprehensive earnings and reclassified to the consolidated statements of earnings when the underlying hedged transaction affects net earnings. Any gain or loss on the derivative in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in net earnings during the period of change. Derivatives not designated as hedges are adjusted to fair value through net earnings. | ||||||||||||||||||||
Share-based Compensation. The Company recognizes compensation expense related to Performance Units subject to cliff vesting and time-vested stock options, SSARs, and RSUs subject to graded vesting using the straight-line method over the applicable service period. Share-based awards that are settled in cash are subject to liability accounting. Accordingly, the fair value for such awards is calculated on a quarterly basis, and the liability is adjusted and expense is recognized, based on changes to the percentage of time vested. | ||||||||||||||||||||
Accumulated Other Comprehensive Earnings (Losses). The following table presents changes in accumulated other comprehensive earnings (losses) attributable to TRW by component (excluding noncontrolling interest): | ||||||||||||||||||||
Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
For the year ended December 31, 2014: | ||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 41 | $ | -405 | $ | -16 | $ | -380 | ||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | -266 | -96 | -1 | -363 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | -(a) | 4 | 4 | ||||||||||||||||
Other comprehensive earnings (losses), net of tax | -266 | -96 | 3 | -359 | ||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | -225 | $ | -501 | $ | -13 | $ | -739 | ||||||||||||
For the year ended December 31, 2013: | ||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 83 | $ | -559 | $ | 10 | $ | -466 | ||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | -42 | 134 | -25 | 67 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 20(b) | -1 | 19 | ||||||||||||||||
Other comprehensive earnings (losses), net of tax | -42 | 154 | -26 | 86 | ||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 41 | $ | -405 | $ | -16 | $ | -380 | ||||||||||||
(a) | Includes actuarial gains of $12 million, reduced by prior service cost of $12 million, net of de minimis tax. | |||||||||||||||||||
(b) | Includes actuarial gains of $46 million, reduced by prior service cost of $17 million, net of tax of $9 million. | |||||||||||||||||||
Recently Adopted or Issued 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 applied 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. | ||||||||||||||||||||
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 continues to assess the potential impact on its operations and financial statements. |
Assets_Held_for_Sale
Assets Held for Sale | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Assets Held for Sale [Abstract] | |||||||||||||||
Assets Held for Sale [Text Block] | 4. Assets Held-For-Sale | ||||||||||||||
On September 10, 2014, the Company entered into a definitive agreement to divest its engine valve business for a purchase price of $385 million in cash, which is subject to adjustment in accordance with the agreement. On February 6, 2015, the Company closed the sale of its wholly-owned engine valve subsidiaries which represented the material portion of the business to be divested. The closing did not include the transfer of several of the Company's joint ventures involved in the business. The engine valve business is reported within the Automotive Components segment (see Note 20). | |||||||||||||||
This divestiture qualified for held-for-sale accounting treatment, and as such, the assets and liabilities associated with the transaction are separately classified as held-for-sale in the consolidated balance sheet as of December 31, 2014 and depreciation of long-lived assets has ceased. The divestiture did not meet the criteria for presentation as a discontinued operation. | |||||||||||||||
The major classes of assets and liabilities held-for-sale were as follows: | |||||||||||||||
As of | |||||||||||||||
31-Dec-14 | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Cash | $ | 10 | |||||||||||||
Accounts receivable — net | 23 | ||||||||||||||
Inventories | 44 | ||||||||||||||
Prepaid expenses and other current assets | 6 | ||||||||||||||
Property, plant and equipment — net | 158 | ||||||||||||||
Other assets | 11 | ||||||||||||||
Total assets held-for-sale | $ | 252 | |||||||||||||
Trade accounts payable | $ | 24 | |||||||||||||
Accrued compensation | 15 | ||||||||||||||
Other current liabilities | 24 | ||||||||||||||
Pension and defined contribution benefits | 41 | ||||||||||||||
Total liabilities related to assets held-for-sale | $ | 104 | |||||||||||||
Earnings before income taxes for the engine valve business were as follows: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | |||||||||||||||
Earnings before income taxes | $ | 47 | $ | 39 | $ | 42 | |||||||||
Less: Earnings attributable to noncontrolling interest | 4 | 5 | 3 | ||||||||||||
Earnings before income taxes attributable to TRW | $ | 43 | $ | 34 | $ | 39 | |||||||||
Inventories
Inventories | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Inventories [Abstract] | |||||||||||
Inventories | 5. Inventories | ||||||||||
The major classes of inventory are as follows: | |||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
(Dollars in millions) | |||||||||||
Finished products and work in process | $ | 470 | $ | 499 | |||||||
Raw materials and supplies | 502 | 520 | |||||||||
Total inventories | $ | 972 | $ | 1,019 |
Investment_in_Joint_Venture_Af
Investment in Joint Venture Affiliate | 12 Months Ended |
Dec. 31, 2014 | |
Investment in Joint Venture Affiliates [Abstract] | |
Investment in Joint Venture Affiliates [Text Block] | Investment in Joint Venture Affiliate |
During 2014, the Company made equity and working capital contributions of $17 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 supply castings to the Company's North American Braking operations through a long-term supply arrangement, which is deemed to contain an embedded lease arrangement. For accounting purposes only, the Company is deemed to be the owner of the casting foundry during the construction period. Therefore, the Company recorded $46 million as construction-in-process and $32 million in long-term liabilities. The liability does not represent a legal obligation to pay cash. | |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant And Equipment [Text Block] | 7. Property, Plant and Equipment | ||||||||||
The major classes of property, plant and equipment are as follows: | |||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
(Dollars in millions) | |||||||||||
Property, plant and equipment: | |||||||||||
Land and improvements | $ | 174 | $ | 213 | |||||||
Buildings | 752 | 831 | |||||||||
Machinery and equipment | 5,682 | 5,985 | |||||||||
Computers and capitalized software | 102 | 109 | |||||||||
6,710 | 7,138 | ||||||||||
Accumulated depreciation and amortization: | |||||||||||
Land and improvements | -27 | -33 | |||||||||
Buildings | -377 | -416 | |||||||||
Machinery and equipment | -3,583 | -3,879 | |||||||||
Computers and capitalized software | -78 | -92 | |||||||||
-4,065 | -4,420 | ||||||||||
Total property, plant and equipment - net | $ | 2,645 | $ | 2,718 | |||||||
Depreciation expense was $440 million, $416 million, and $397 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets | |||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
The changes in goodwill are as follows: | ||||||||||||||||||||||||||
Occupant | ||||||||||||||||||||||||||
Chassis | Safety | Automotive | ||||||||||||||||||||||||
Systems | Systems | Electronics | Components | |||||||||||||||||||||||
Segment | Segment | Segment | Segment | Total | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 796 | $ | 537 | $ | 423 | $ | - | $ | 1,756 | ||||||||||||||||
Allocation of goodwill due to change in segment reporting | 275 | - | -275 | - | - | |||||||||||||||||||||
Effects of foreign currency translation | - | 4 | - | - | 4 | |||||||||||||||||||||
Balance as of December 31, 2013 | 1,071 | 541 | 148 | - | 1,760 | |||||||||||||||||||||
Effects of foreign currency translation | -1 | -10 | - | - | -11 | |||||||||||||||||||||
Balance as of December 31, 2014 | $ | 1,070 | $ | 531 | $ | 148 | $ | - | $ | 1,749 | ||||||||||||||||
Annual Assessment. The Company performed its annual assessment of goodwill for its Chassis Systems, Occupant Safety Systems and Electronics segments as of October 31, 2014, 2013 and 2012. In 2014 and 2012, the Company performed a qualitative assessment of goodwill, and concluded that it is more likely than not that each reporting unit's fair value exceeded its carrying value, thus further impairment testing was not necessary. In 2013, the Company performed a quantitative impairment analysis of goodwill, which indicated that the estimated fair value of each reporting unit substantially exceeded its corresponding carrying amount, and as such, no reporting unit was at risk for impairment. | ||||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||
The following table reflects intangible assets and related accumulated amortization: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | 67 | $ | -67 | $ | - | $ | 67 | $ | -67 | $ | - | ||||||||||||||
Developed technology and other intangible assets | 120 | -93 | 27 | 119 | -91 | 28 | ||||||||||||||||||||
Total | 187 | $ | -160 | 27 | 186 | $ | -158 | 28 | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | 264 | 264 | 264 | 264 | ||||||||||||||||||||||
Total | $ | 451 | $ | 291 | $ | 450 | $ | 292 | ||||||||||||||||||
Amortization of intangible assets was $4 million, $14 million, and $12 million for the years ended 2014, 2013, and 2012, respectively. The Company performed its annual impairment analysis for its indefinite-lived trademarks as of October 31, 2014, 2013 and 2012 using a quantitative assessment, and concluded that no impairment existed as of the testing dates. | ||||||||||||||||||||||||||
Customer relationships and developed technology have been fully amortized. The weighted average amortization periods for other intangible assets subject to amortization are as follows: | ||||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||||
Amortization Period | ||||||||||||||||||||||||||
Other intangible assets | 9 years | |||||||||||||||||||||||||
The Company expects that ongoing amortization expense for other intangibles will approximate the following: | ||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Fiscal year 2015 | $ | 3 | ||||||||||||||||||||||||
Fiscal year 2016 | 1 | |||||||||||||||||||||||||
2017 and beyond | 23 | |||||||||||||||||||||||||
The expected amortization expense for 2017 and beyond primarily relates to land use rights |
Other_Income_Expense_Net
Other (Income) Expense - Net | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Other Expense (Income) - Net [Abstract] | |||||||||||||||
Other (Income) Expense - Net | 9. Other Expense (Income) - Net | ||||||||||||||
The following table provides details of other expense (income) - net: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | |||||||||||||||
Net provision for bad debts | $ | 4 | $ | 4 | $ | -1 | |||||||||
Net gains on sales of assets and divestitures | - | - | -6 | ||||||||||||
Foreign currency exchange losses | 8 | 17 | 2 | ||||||||||||
Royalty and grant income | -22 | -19 | -18 | ||||||||||||
Miscellaneous other expense (income) | 12 | -3 | -14 | ||||||||||||
Other expense (income) - net | $ | 2 | $ | -1 | $ | -37 |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Income Taxes | 10. Income Taxes | |||||||||||||||
Income tax expense (benefit) for each of the periods presented is as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(Dollars in millions) | ||||||||||||||||
The components of earnings before income taxes are as follows: | ||||||||||||||||
U.S. | $ | 195 | $ | 331 | $ | 464 | ||||||||||
Non-U.S. | 235 | 790 | 544 | |||||||||||||
$ | 430 | $ | 1,121 | $ | 1,008 | |||||||||||
Significant components of the provision for income taxes are as follows: | ||||||||||||||||
Current | ||||||||||||||||
Non-U.S. | $ | 190 | $ | 161 | $ | 169 | ||||||||||
U.S. State and Local | - | - | 2 | |||||||||||||
Total current | 190 | 161 | 171 | |||||||||||||
Deferred | ||||||||||||||||
U.S. Federal | 30 | -39 | -98 | |||||||||||||
Non-U.S. | -127 | -1 | -97 | |||||||||||||
U.S. State and Local | 3 | -7 | -9 | |||||||||||||
Total deferred | -94 | -47 | -204 | |||||||||||||
Income tax expense (benefit) | $ | 96 | $ | 114 | $ | -33 | ||||||||||
The reconciliation of income taxes calculated at the U.S. federal statutory income tax rate of 35% to income tax expense (benefit) is: | ||||||||||||||||
Income taxes at U.S. statutory rate | $ | 150 | $ | 392 | $ | 353 | ||||||||||
U.S. state and local income taxes net of U.S. federal tax benefit | 3 | -6 | -7 | |||||||||||||
Difference in income tax on foreign earnings, losses and remittances | 5 | -23 | -197 | |||||||||||||
Tax holidays and incentives | -28 | -32 | -38 | |||||||||||||
Valuation allowance | 7 | 17 | -63 | |||||||||||||
Foreign and other tax credits | -47 | -196 | -82 | |||||||||||||
Impact of tax legislation | -3 | -43 | -9 | |||||||||||||
Nondeductible expenses | 9 | 8 | 12 | |||||||||||||
Other | - | -3 | -2 | |||||||||||||
$ | 96 | $ | 114 | $ | -33 | |||||||||||
For the year ended December 31, 2014, the reconciliation above provides for an incremental tax expense associated with foreign earnings, losses and remittances, which is substantially impacted by the net pension settlement and curtailment loss in the United Kingdom which has a statutory tax rate substantially lower than the U.S. statutory rate. Income tax expense for the year ended December 31, 2013 includes a tax benefit of approximately $196 million related to our ability to utilize U.S. foreign tax credits and various tax legislation enacted during the year. Income tax benefit for the year ended December 31, 2012 includes a tax benefit of approximately $255 million related to various tax planning and legal entity restructuring actions. | ||||||||||||||||
Deferred tax assets and liabilities result from differences in the bases of assets and liabilities for tax and financial statement purposes. The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of the deferred tax assets and liabilities are as follows: | ||||||||||||||||
As of December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||
Deferred tax assets: | ||||||||||||||||
Pensions and postretirement benefits other than pensions | $ | 274 | $ | 218 | ||||||||||||
Inventory | 40 | 41 | ||||||||||||||
Reserves and accruals | 315 | 327 | ||||||||||||||
Net operating loss and credit carryforwards | 617 | 682 | ||||||||||||||
Fixed assets and intangibles | 65 | 58 | ||||||||||||||
Other | 73 | 69 | ||||||||||||||
Total deferred tax assets | 1,384 | 1,395 | ||||||||||||||
Valuation allowance for deferred tax assets | -274 | -295 | ||||||||||||||
Net deferred tax assets | 1,110 | 1,100 | ||||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Pensions and postretirement benefits other than pensions | -100 | -200 | ||||||||||||||
Fixed assets and intangibles | -282 | -266 | ||||||||||||||
Undistributed earnings of foreign subsidiaries | -104 | -116 | ||||||||||||||
Deferred gain | -56 | -59 | ||||||||||||||
Other | -63 | -81 | ||||||||||||||
Total deferred tax liabilities | -605 | -722 | ||||||||||||||
Net deferred taxes | $ | 505 | $ | 378 | ||||||||||||
The Company has separately reflected the current deferred tax asset and the long term deferred tax assets and liabilities on the consolidated balance sheets for December 31, 2014 and 2013. However, the current deferred tax liability of $9 million as of December 31, 2014 and $17 million as of December 31, 2013 is included in other current liabilities on the consolidated balance sheets. The table above includes the applicable deferred tax assets of $2 million and deferred tax liabilities of $4 million related to the Company's engine valve business which is classified as held for sale as of December 31, 2014. | ||||||||||||||||
As of December 31, 2014 and 2013, the Company had deferred tax assets from domestic and foreign net operating loss and tax credit carryforwards of approximately $617 million and $682 million, respectively. Approximately $220 million of the deferred tax assets at December 31, 2014 relate to net operating loss carryforwards or tax credits that can be carried forward indefinitely with the remainder expiring between 2015 and 2034. The deferred tax asset relating to U.S. tax credit carryforwards as of December 31, 2014 is lower than the actual amount reported and expected to be reported on our U.S. tax returns by approximately $147 million. This difference is the result of tax deductions in excess of financial statement amounts for stock based compensation and tax deductible goodwill. When these amounts are realized, the Company will record a credit to additional paid in capital and financial statement goodwill, respectively. | ||||||||||||||||
The Company has provided deferred income taxes for the estimated U.S. federal income tax, foreign income tax, and applicable withholding tax effects of earnings of subsidiaries expected to be distributed to the Company. Deferred income taxes have not been provided on approximately $3.4 billion of undistributed earnings of certain foreign subsidiaries as such amounts are considered to be permanently reinvested. Determination of the amount of unrecognized deferred income tax liability relating to the remittance of such undistributed earnings is not practicable. | ||||||||||||||||
In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence. Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. However, the three year loss position is not solely determinative and accordingly, we consider all other available positive and negative evidence in our analysis. The Company utilizes a rolling twelve quarters of pre-tax income or loss adjusted for significant permanent book to tax differences as a measure of our cumulative results in recent years. If, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. Based upon this analysis, we believe it is more likely than not that the net deferred tax asset in certain foreign jurisdictions may not be realized in the future. Accordingly, we maintain a valuation allowance related to those net deferred tax assets. | ||||||||||||||||
During 2014, the Company recorded a net tax expense of $7 million related to increases in our global valuation allowance against net deferred tax assets, which is comprised of two items: 1) a net tax expense of $27 million resulting from net losses in certain foreign jurisdictions with no corresponding tax benefit due to increases in our valuation allowances, and 2) a net tax benefit of $20 million resulting from changes in determinations relating to the potential realization of deferred tax assets and the resulting reversal of a valuation allowance on certain deferred tax assets in Poland partially offset by the generation of a valuation allowance in Italy. During 2013, the Company recorded a net tax expense of $17 million resulting from net losses in certain foreign jurisdictions with no corresponding tax benefit due to increases in our valuation allowances. During 2012, the Company recorded a net tax benefit of $63 million related to reductions in our global valuation allowance against net deferred tax assets, which is comprised of two items: 1) a net tax expense of $37 million resulting from net losses in certain foreign jurisdictions with no corresponding tax benefit due to increases in our valuation allowances, and 2) a net tax benefit of $100 million resulting from changes in determinations relating to the potential realization of deferred tax assets and the resulting reversal of a valuation allowance on net deferred tax assets in Canada and certain other foreign subsidiaries. | ||||||||||||||||
At December 31, 2014, 2013, and 2012, the Company had $168 million, $176 million, and $160 million of gross unrecognized tax benefits, respectively. In addition, at December 31, 2014, 2013, and 2012 the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $129 million, $136 million, and $118 million, respectively. The gross unrecognized tax benefits differ from the amount that would affect the effective tax rate due to the impact of valuation allowances, and foreign country offsets relating to transfer pricing adjustments. | ||||||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(Dollars in millions) | ||||||||||||||||
Balance, January 1, | $ | 176 | $ | 160 | $ | 148 | ||||||||||
Additions based on tax positions related to the current year | 16 | 14 | 12 | |||||||||||||
Additions for tax positions of prior years | 8 | 32 | 40 | |||||||||||||
Reductions for tax positions of prior years | -7 | -28 | -23 | |||||||||||||
Reductions for settlements | -7 | -1 | -17 | |||||||||||||
Reductions due to lapse in statute of limitations | -8 | -3 | -3 | |||||||||||||
Change attributable to foreign currency translation | -10 | 2 | 3 | |||||||||||||
Balance, December 31, | $ | 168 | $ | 176 | $ | 160 | ||||||||||
The Company operates globally but considers its more significant tax jurisdictions to include the United States, Germany, China, the Czech Republic, Poland, Spain, and the United Kingdom. Generally, the Company has years open to tax examination in significant tax jurisdictions from 2009 forward. The income tax returns of several subsidiaries in various tax jurisdictions are currently under examination. Although it is not possible to predict the timing of the conclusions of all ongoing tax audits with accuracy, it is possible that some or all of these examinations will conclude within the next 12 months. It is also reasonably possible that certain statute of limitations may expire relating to various foreign jurisdictions within the next 12 months. As such, it is possible that a change in the Company's gross unrecognized tax benefits may occur; however, it is not possible to reasonably estimate the effect this may have upon the gross unrecognized tax benefits. | ||||||||||||||||
The Company recognizes interest and penalties with respect to unrecognized tax benefits as a component of income tax expense. At December 31, 2014, 2013, and 2012, accrued interest and penalties related to unrecognized tax benefits was $42 million, $36 million, and $24 million, respectively. Tax expense for the years ended December 31, 2014, 2013, and 2012 includes net interest and penalties of $10 million, $12 million, and $1 million, respectively on unrecognized tax benefits. | ||||||||||||||||
On July 17, 2013, the United Kingdom – Finance Bill of 2013 received Royal Assent, thereby becoming law as the Finance Act of 2013 (the “2013 Act”). The 2013 Act provides for a reduction to the corporate income tax rate from 23% to 21% effective April 1, 2014, with a further reduction to 20% effective April 1, 2015. The impact of this tax legislation was a tax benefit of approximately $21 million recorded during 2013. | ||||||||||||||||
On January 2, 2013, the American Taxpayer Relief Act of 2012 was enacted, which retroactively reinstated and extended various tax provisions applicable to the Company, including the research and development tax credit and the look through rules for controlling foreign corporations. The impact of this tax legislation was a tax benefit of approximately $15 million recorded during 2013. | ||||||||||||||||
On July 17, 2012, the United Kingdom - Finance Bill of 2012 received Royal Assent, thereby becoming law as the Finance Act of 2012 (the “2012 Act”). The 2012 Act provides for a reduction to the corporate income tax rate from 25% to 24% effective April 1, 2012, with a further reduction to 23% effective April 1, 2013. The impact of this tax legislation was a tax benefit of approximately $9 million recorded during 2012. |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||
Retirement Benefits | 11. Retirement Benefits | ||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||
A significant number of employees of the Company and its subsidiaries participate in the Company's defined benefit plans or retirement/termination indemnity plans. | |||||||||||||||||||||||||||||
The following table provides a reconciliation of the changes in the plans' benefit obligation and fair value of assets for the years ended December 31, 2014 and 2013 and a statement of the funded status as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Total accumulated benefit obligation at December 31, | $ | 349 | $ | 1,460 | $ | 754 | $ | 767 | $ | 4,730 | $ | 865 | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligations at beginning of period | $ | 769 | $ | 4,729 | $ | 930 | $ | 1,073 | $ | 4,730 | $ | 955 | |||||||||||||||||
Service cost | 2 | - | 21 | 2 | - | 23 | |||||||||||||||||||||||
Interest cost | 37 | 206 | 34 | 42 | 189 | 36 | |||||||||||||||||||||||
Plan amendments | - | 7 | 2 | - | - | 1 | |||||||||||||||||||||||
Actuarial (gain) loss | 105 | 1,384 | 237 | -133 | -7 | -34 | |||||||||||||||||||||||
Foreign currency exchange rate changes | - | -321 | -113 | - | 95 | - | |||||||||||||||||||||||
Settlement/Curtailment (gain) loss | -520 | -4,283 | -224 | -153 | - | - | |||||||||||||||||||||||
Benefits paid | -43 | -262 | -46 | -62 | -278 | -51 | |||||||||||||||||||||||
Benefit obligations at December 31, | 350 | 1,460 | 841 | 769 | 4,729 | 930 | |||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | 695 | 5,763 | 328 | 804 | 5,552 | 303 | |||||||||||||||||||||||
Actual return on plan assets, less plan expense | 82 | 1,022 | 31 | 46 | 320 | 48 | |||||||||||||||||||||||
Foreign currency exchange rate changes | - | -361 | -26 | - | 122 | -23 | |||||||||||||||||||||||
Company contributions | 41 | 219 | 61 | 60 | 47 | 51 | |||||||||||||||||||||||
Settlements | -520 | -4,283 | -223 | -153 | - | - | |||||||||||||||||||||||
Benefits paid | -43 | -262 | -46 | -62 | -278 | -51 | |||||||||||||||||||||||
Fair value of plan assets at December 31, | 255 | 2,098 | 125 | 695 | 5,763 | 328 | |||||||||||||||||||||||
Funded status at December 31, | $ | -95 | $ | 638 | $ | -716 | $ | -74 | $ | 1,034 | $ | -602 | |||||||||||||||||
During 2014, the Company undertook a number of actions to abate a significant portion of pension obligations in the U.S., U.K. and Canada by offering lump sum payments to certain active and former employees and entering into group annuity contracts with third party carriers to pay and administer future annuity payments related to substantially all retirees. These actions resulted in settlement charges of $117 million, $600 million and $73 million in the U.S., U.K. and Canada, respectively. A significant portion of these actions were financed with plan assets; however, additional cash contributions of $163 million and $12 million in the U.K. and Canada, respectively, were required. | |||||||||||||||||||||||||||||
During 2013 and 2012, the Company undertook a number of similar actions in respect of its U.S. defined benefit plans. Participants who accepted the offers received lump sum payments in the amount of $148 million and $298 million which were paid from plan assets in 2013 and 2012, respectively. The Company recognized settlement losses of $35 million in 2013 and $88 million in 2012. | |||||||||||||||||||||||||||||
The following table provides the amounts recognized in the consolidated balance sheets: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Non-current assets | $ | 2 | $ | 638 | $ | 23 | $ | 2 | $ | 1,034 | $ | 23 | |||||||||||||||||
Current liabilities | - | - | -22 | - | - | -25 | |||||||||||||||||||||||
Liabilities held-for-sale | - | - | -40 | - | - | - | |||||||||||||||||||||||
Long-term liabilities | -97 | - | -677 | -76 | - | -600 | |||||||||||||||||||||||
Net amount recognized | $ | -95 | $ | 638 | $ | -716 | $ | -74 | $ | 1,034 | $ | -602 | |||||||||||||||||
The pre-tax amounts recognized in accumulated other comprehensive earnings (losses) consist of: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service benefit (cost) | $ | - | $ | - | $ | -4 | $ | - | $ | - | $ | -3 | |||||||||||||||||
Net gain (loss) | -80 | -210 | -300 | -132 | -144 | -197 | |||||||||||||||||||||||
Accumulated other comprehensive earnings (loss) | $ | -80 | $ | -210 | $ | -304 | $ | -132 | $ | -144 | $ | -200 | |||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Projected benefit obligation | $ | 341 | $ | 752 | $ | 748 | $ | 636 | |||||||||||||||||||||
Accumulated benefit obligation | 339 | 665 | 746 | 572 | |||||||||||||||||||||||||
Fair value of assets | 244 | 13 | 672 | 11 | |||||||||||||||||||||||||
The following table provides the components of net pension cost (income) and other amounts recognized in other comprehensive (earnings) loss for the Company's defined benefit pension plans and defined contribution plans: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | U.S. | U.K. | World | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Net pension cost (income) | |||||||||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||||||||
Service cost | $ | 2 | $ | - | $ | 21 | $ | 2 | $ | - | $ | 23 | $ | 4 | $ | - | $ | 19 | |||||||||||
Interest cost | 37 | 206 | 34 | 42 | 189 | 36 | 59 | 215 | 38 | ||||||||||||||||||||
Expected return on plan assets | -49 | -341 | -16 | -59 | -315 | -20 | -80 | -328 | -20 | ||||||||||||||||||||
Settlement/Curtailment (gain) loss | 117 | 600 | 72 | 35 | - | - | 92 | - | 2 | ||||||||||||||||||||
Amortization of prior service (benefit) cost | - | - | 1 | - | - | 1 | 2 | - | - | ||||||||||||||||||||
Amortization of net (gain) loss | 8 | - | 11 | 27 | - | 18 | 19 | - | 9 | ||||||||||||||||||||
Defined benefit plans | 115 | 465 | 123 | 47 | -126 | 58 | 96 | -113 | 48 | ||||||||||||||||||||
Defined contribution plans cost | 23 | 4 | 24 | 22 | 3 | 16 | 22 | 3 | 16 | ||||||||||||||||||||
Net pension cost (income) | 138 | 469 | 147 | 69 | -123 | 74 | 118 | -110 | 64 | ||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||||||||||||||||||||||||||||
Prior service (benefit) cost | - | 7 | 2 | - | - | -1 | - | - | 1 | ||||||||||||||||||||
Net (gain) loss | 72 | 703 | 223 | -120 | -12 | -61 | 33 | 295 | 125 | ||||||||||||||||||||
Effect of exchange rates on amounts included in AOCI | - | -45 | -36 | - | 3 | -4 | - | -2 | 7 | ||||||||||||||||||||
Amortization or curtailment recognition of prior service benefit (cost) | - | -7 | -1 | - | - | 1 | -2 | - | -1 | ||||||||||||||||||||
Amortization or settlement recognition of net gain (loss) | -125 | -592 | -84 | -62 | - | -19 | -110 | - | -11 | ||||||||||||||||||||
Total recognized in other comprehensive (earnings) loss | -53 | 66 | 104 | -182 | -9 | -84 | -79 | 293 | 121 | ||||||||||||||||||||
Total recognized net pension (income) cost and other comprehensive (earnings) loss | $ | 85 | $ | 535 | $ | 251 | $ | -113 | $ | -132 | $ | -10 | $ | 39 | $ | 183 | $ | 185 | |||||||||||
The estimated amounts that will be amortized from accumulated other comprehensive earnings over the next fiscal year are as follows: | |||||||||||||||||||||||||||||
Year Ending | |||||||||||||||||||||||||||||
31-Dec-15 | |||||||||||||||||||||||||||||
Rest of | |||||||||||||||||||||||||||||
U.S. | World | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service (benefit) cost | $ | - | $ | 1 | |||||||||||||||||||||||||
Net (gain) loss | 7 | 29 | |||||||||||||||||||||||||||
Total | $ | 7 | $ | 30 | |||||||||||||||||||||||||
Plan Assumptions. The weighted-average assumptions used to determine net periodic benefit cost were: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | U.S. | U.K. | World | |||||||||||||||||||||
Discount rate | 5 | % | 4.5 | % | 4.18 | % | 4 | % | 4.25 | % | 3.9 | % | 4.75 | % | 4.75 | % | 4.82 | % | |||||||||||
Expected long-term return on plan assets | 7.5 | % | 6.25 | % | 6.31 | % | 7.75 | % | 6.25 | % | 6.53 | % | 7.75 | % | 6.25 | % | 6.5 | % | |||||||||||
Rate of increase in compensation levels | 3.5 | % | N/A | 2.9 | % | 5 | % | N/A | 2.9 | % | 4.76 | % | N/A | 2.92 | % | ||||||||||||||
To develop the expected long-term rate of return on asset assumptions, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. The U.K. pension plan and certain of the U.S. pension plans are closed to future benefits, therefore the rate of increase in compensation was not applicable in determining the net period benefit cost for 2014, 2013 and 2012, nor in determining the benefit obligation as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
The weighted-average assumptions used to calculate the benefit obligations were: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
Discount rate | 4.25 | % | 3.75 | % | 2.41 | % | 5 | % | 4.5 | % | 4.18 | % | |||||||||||||||||
Rate of increase in compensation levels | 5 | % | N/A | 2.89 | % | 3.5 | % | N/A | 2.9 | % | |||||||||||||||||||
Plan Assets. The U.S. and U.K. plan assets represent approximately 95% of the total plan assets of defined benefit plans. All remaining assets are deemed immaterial and not reflected below. | |||||||||||||||||||||||||||||
The goals and investment objectives of the asset strategy are to ensure that there is an adequate level of assets to meet benefit obligations to participants and retirees over the life of the participants and maintain liquidity in the plan assets sufficient to cover current benefit obligations. Risk is managed by investing in a broad range of asset classes and the use of liability matching derivative instruments. Within the asset classes, investments are made in a broad range of individual securities. There are no equity securities of the Company in the equity asset category. | |||||||||||||||||||||||||||||
The investment policies for the U.K. and U.S. pension plans are based on a low volatility and risk asset allocation that targets a sufficient level of return to meet benefit payments as they become due over the long term. The investment policy includes a significant allocation to a liability driven cash-flow matching strategy which also includes a substantial interest rate hedging program as well as an inflation hedging program in the U.K. The remaining assets are invested mainly in physical and synthetic equities (with a degree of protection from downside risk), a range of U.K., U.S. and other credit opportunities (including asset backed securities) and property to achieve a diversified real return to meet the expected future liability outflows. | |||||||||||||||||||||||||||||
As of December 31, 2014, the investment policy resulted in an asset allocation for all plans of 52% in fixed income investments, 5% in equity and structured equity investments, 4% in real estate, and 39% in cash and other investments. Equity investments include investments in large-cap and mid-cap companies and mutual funds located throughout the world. Structured equity investments include equity option “collar” structures which reduce the outright exposure to falls in the levels of underlying equity markets. Fixed income securities include government bonds, corporate bonds of companies from diversified industries, asset backed securities and collateral assets held in government bonds for structured equity holdings. Real estate includes investments in real estate and funds that invest in real estate. Cash and other investments primarily include cash held by the plan, U.K. government treasuries and certain types of derivative instruments including interest rate and inflation swaps that are utilized to manage risks associated with the assets held by the plan. | |||||||||||||||||||||||||||||
The fair values of the Company's U.S. and U.K. pension plan assets by asset category using the fair value three-level hierarchy (see Note 12) are as follows: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 943 | $ | - | $ | - | $ | 656 | $ | - | $ | - | |||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||||||||
Corporate bonds | - | 109 | - | - | 1,864 | - | |||||||||||||||||||||||
U.K. government guaranteed bonds | 359 | - | - | 1,724 | - | - | |||||||||||||||||||||||
Collateral assets for structured equity holdings | 86 | - | - | 80 | - | - | |||||||||||||||||||||||
Asset backed securities | - | 665 | - | - | 1,081 | - | |||||||||||||||||||||||
Equities: | |||||||||||||||||||||||||||||
Common stock | 2 | - | - | 4 | - | - | |||||||||||||||||||||||
Structured equity holdings | - | 114 | - | - | 916 | - | |||||||||||||||||||||||
Real estate | - | 99 | - | - | 148 | - | |||||||||||||||||||||||
Other | - | -24 | - | - | -15 | - | |||||||||||||||||||||||
Total assets at fair value | $ | 1,390 | $ | 963 | $ | - | $ | 2,464 | $ | 3,994 | $ | - | |||||||||||||||||
Contributions. In 2015, the Company's minimum expected funding is $7 million for the U.K. pension plan and approximately $29 million for pension plans in the rest of the world. However, the Company may, at its discretion, make additional contributions. The Company does not expect to make any funding contributions to the U.S. plans in 2015. | |||||||||||||||||||||||||||||
Expected Future Pension Benefit Payments. The following pension benefit payments, which reflect current obligations and expected future service, as appropriate, are expected to be paid from the underlying plans to the participants: | |||||||||||||||||||||||||||||
U.S. | U.K. | Rest of World | |||||||||||||||||||||||||||
Years Ending December 31, | (Dollars in millions) | ||||||||||||||||||||||||||||
2015 | $ | 7 | $ | 29 | $ | 24 | |||||||||||||||||||||||
2016 | 36 | 24 | 26 | ||||||||||||||||||||||||||
2017 | 10 | 26 | 28 | ||||||||||||||||||||||||||
2018 | 11 | 28 | 30 | ||||||||||||||||||||||||||
2019 | 12 | 32 | 31 | ||||||||||||||||||||||||||
2020 - 2024 | 76 | 225 | 183 | ||||||||||||||||||||||||||
Other Benefits. The Company also sponsors qualified defined contribution pension plans covering employees at certain operations and an unfunded non-qualified defined contribution plan for a select group of highly compensated employees. These plans allow participants to defer compensation, and generally provide employer matching contributions. | |||||||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions (“OPEB”) | |||||||||||||||||||||||||||||
The Company provides health care and life insurance benefits for a substantial number of its retired employees in the United States and Canada, and for certain future retirees. The health care plans provide for the sharing of costs, in the form of retiree contributions, deductibles and coinsurance. Life insurance benefits are generally noncontributory. The Company's policy is to fund the cost of postretirement health care and life insurance benefits as those benefits become payable. | |||||||||||||||||||||||||||||
The following table provides a reconciliation of the changes in the plans' benefit obligation and fair value of assets during the years ended December 31, 2014 and December 31, 2013, and a statement of the funded status of the programs as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligations at beginning of period | $ | 323 | $ | 88 | $ | 330 | $ | 103 | |||||||||||||||||||||
Service cost | - | 1 | 1 | 1 | |||||||||||||||||||||||||
Interest cost | 15 | 4 | 14 | 4 | |||||||||||||||||||||||||
Actuarial (gain) loss | -23 | 10 | -40 | -10 | |||||||||||||||||||||||||
Foreign currency exchange rate changes | - | -7 | - | -6 | |||||||||||||||||||||||||
Plan amendments | - | - | 57 | 3 | |||||||||||||||||||||||||
Plan participant contributions | 1 | - | 1 | - | |||||||||||||||||||||||||
Benefits paid | -28 | -6 | -40 | -7 | |||||||||||||||||||||||||
Benefit obligations at December 31, | 288 | 90 | 323 | 88 | |||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | - | - | - | - | |||||||||||||||||||||||||
Company contributions | 27 | 6 | 39 | 7 | |||||||||||||||||||||||||
Plan participant contributions | 1 | - | 1 | - | |||||||||||||||||||||||||
Benefits paid | -28 | -6 | -40 | -7 | |||||||||||||||||||||||||
Fair value of plan assets at December 31, | - | - | - | - | |||||||||||||||||||||||||
Funded status at December 31, | $ | -288 | $ | -90 | $ | -323 | $ | -88 | |||||||||||||||||||||
The following table provides the amounts recognized in the consolidated balance sheets: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Current liabilities | $ | -26 | $ | -6 | $ | -30 | $ | -6 | |||||||||||||||||||||
Long-term liabilities | -262 | -84 | -293 | -82 | |||||||||||||||||||||||||
Total amount recognized | $ | -288 | $ | -90 | $ | -323 | $ | -88 | |||||||||||||||||||||
The pre-tax amounts recognized in accumulated other comprehensive earnings (losses) consist of: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service benefit (cost) | $ | 50 | $ | 10 | $ | 58 | $ | 17 | |||||||||||||||||||||
Net gain (loss) | 19 | -7 | -2 | 2 | |||||||||||||||||||||||||
Accumulated other comprehensive earnings (loss) | $ | 69 | $ | 3 | $ | 56 | $ | 19 | |||||||||||||||||||||
The following table provides the components of net postretirement benefit (income) cost and other amounts recognized in other comprehensive (earnings) loss for the plans. | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | World | U.S. | World | U.S. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Net postretirement benefit (income) cost: | |||||||||||||||||||||||||||||
Service cost | $ | - | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||||||||||||
Interest cost | 15 | 4 | 14 | 4 | 16 | 5 | |||||||||||||||||||||||
Curtailment/Settlement (gain) loss | - | - | -29 | - | -36 | - | |||||||||||||||||||||||
Amortization of prior service (benefit) cost | -8 | -5 | -13 | -5 | -22 | -7 | |||||||||||||||||||||||
Amortization of net (gain) loss | -2 | - | 1 | 1 | - | 1 | |||||||||||||||||||||||
Net postretirement benefit (income) cost | 5 | - | -26 | 1 | -41 | - | |||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss: | |||||||||||||||||||||||||||||
Prior service (benefit) cost | - | - | 57 | 3 | - | 3 | |||||||||||||||||||||||
Net (gain) loss | -23 | 10 | -40 | -9 | -6 | -8 | |||||||||||||||||||||||
Amortization or curtailment recognition of prior service benefit (cost) | 8 | 5 | 31 | 5 | 51 | 6 | |||||||||||||||||||||||
Amortization or settlement recognition of net gain (loss) | 2 | 1 | 9 | - | 6 | -1 | |||||||||||||||||||||||
Total recognized in other comprehensive (earnings) loss | -13 | 16 | 57 | -1 | 51 | - | |||||||||||||||||||||||
Total recognized net postretirement benefit (income) cost and other comprehensive (earnings) loss | $ | -8 | $ | 16 | $ | 31 | $ | - | $ | 10 | $ | - | |||||||||||||||||
Curtailments and Settlements. The Company recorded curtailment/settlement gains during the years ended December 31, 2013 and 2012 of approximately $28 million and $36 million, respectively, related to the termination of retiree medical benefits for certain salaried and hourly employees. In addition, during the year ended December 31, 2013, the Company recorded settlement gains of approximately $1 million related to retiree medical buyouts. | |||||||||||||||||||||||||||||
The estimated amounts that will be amortized from accumulated other comprehensive earnings over the next fiscal year are as follows: | |||||||||||||||||||||||||||||
Year Ending | |||||||||||||||||||||||||||||
31-Dec-15 | |||||||||||||||||||||||||||||
Rest of | |||||||||||||||||||||||||||||
U.S. | World | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service (benefit) cost | $ | -7 | $ | -5 | |||||||||||||||||||||||||
Net actuarial (gain) loss | -4 | - | |||||||||||||||||||||||||||
Total | $ | -11 | $ | -5 | |||||||||||||||||||||||||
Plan Assumptions. The weighted-average assumptions used to determine net postretirement benefit (income) cost were: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | World | U.S. | World | U.S. | World | ||||||||||||||||||||||||
Discount rate | 5 | % | 4.75 | % | 4 | % | 4 | % | 4.75 | % | 4.5 | % | |||||||||||||||||
The discount rate and assumed health care cost trend rates used in the measurement of the benefit obligation as of the applicable measurement dates were: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
Discount rate | 4 | % | 3.75 | % | 5 | % | 4.75 | % | |||||||||||||||||||||
Initial health care cost trend rate at end of year | 7 | % | 4.5 | % | 6.9 | % | 4 | % | |||||||||||||||||||||
Ultimate health care cost trend rate | 4.5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||
Year in which ultimate rate is reached | 2022 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
A one-percentage-point change in the assumed health care cost trend rate would have had the following effects: | |||||||||||||||||||||||||||||
One-Percentage-Point | |||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Effect on total of service and interest cost components for the year ended December 31, 2014 | $ | 1 | $ | - | $ | -1 | $ | - | |||||||||||||||||||||
Effect on postretirement benefit obligation as of measurement date | $ | 21 | $ | 7 | $ | -18 | $ | -7 | |||||||||||||||||||||
Contributions. The Company funds its OPEB obligations on a pay-as-you-go basis. In 2015, the Company expects to contribute approximately $32 million to its OPEB plans. | |||||||||||||||||||||||||||||
Expected Future Postretirement Benefit Payments. The following postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | |||||||||||||||||||||||||||||
U.S. | Rest of World | ||||||||||||||||||||||||||||
Years Ending December 31, | (Dollars in millions) | ||||||||||||||||||||||||||||
2015 | $ | 27 | $ | 5 | |||||||||||||||||||||||||
2016 | 26 | 5 | |||||||||||||||||||||||||||
2017 | 25 | 5 | |||||||||||||||||||||||||||
2018 | 24 | 5 | |||||||||||||||||||||||||||
2019 | 23 | 5 | |||||||||||||||||||||||||||
2020 -2024 | 96 | 28 |
Fair_Value_Measurements_and_Fi
Fair Value Measurements and Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||
Fair Value Measurements and Financial Instruments [Text Block] | 12. 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 consolidated balance sheet are as follows: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2014 | 2013 | Measurement Approach | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Foreign currency exchange contracts — current assets | $ | 7 | $ | 6 | Level 2 | |||||||||||||||||||||
Foreign currency exchange contracts — noncurrent assets | 2 | - | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — current liability | 13 | 5 | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — noncurrent liability | 13 | 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 and quoted interest rate curves, respectively, to calculate forward values, and then discounting the forward values. In addition, the Company's calculation of the fair value of its foreign currency option contracts uses quoted currency volatilities. | ||||||||||||||||||||||||||
The discount rates for all derivative contracts are based on quoted bank deposit or swap interest rates. For contracts which, when aggregated by counterparty, are in a liability position, the rates are adjusted by the credit spread which market participants would apply if buying these contracts from the Company's counterparties. | ||||||||||||||||||||||||||
There were no changes in the Company's valuation techniques during the year ended December 31, 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. The Company records asset impairments associated with its determination of the fair value of its long-lived assets that exhibited indicators of impairment (see Note 14). | ||||||||||||||||||||||||||
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 December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Measurement | ||||||||||||||||||||||
Value | Value | Value | Value | Approach | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Short-term debt, fixed and floating rate | $ | 222 | $ | 222 | $ | 159 | $ | 159 | Level 2 | |||||||||||||||||
Fixed rate long-term debt | $ | 1,326 | $ | 1,389 | $ | 1,821 | $ | 1,884 | Level 2 | |||||||||||||||||
Fixed rate exchangeable notes | $ | 30 | $ | 109 | $ | 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 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 December 31, 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 December 2017. Foreign currency exposures are reviewed monthly and any natural offsets are considered prior to entering into a derivative financial instrument. | ||||||||||||||||||||||||||
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. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in earnings. Such amounts were immaterial for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the effective portion of gains and losses on derivatives designated as cash flow hedges and recognized in OCI was a loss of $6 million, a loss of $33 million and a gain of $80 million, respectively, 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 years ended December 31, 2014, 2013 and 2012 was a loss of $5 million, a gain of $1 million and a gain of $3 million, respectively, and was included in various line items on the statement of earnings. Gains and losses reclassified into earnings include the discontinuance of cash flow hedges, which were immaterial for the years ended December 31, 2014, 2013 and 2012. Approximately $3 million of losses, net of tax, which are included in OCI, are expected to be reclassified into earnings in 2015. | ||||||||||||||||||||||||||
Fair Value Hedges. For any derivative instrument that is designated and qualifies as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the underlying hedged item is recognized in current earnings. As of December 31, 2014 and 2013, the Company had no fair value hedges outstanding. | ||||||||||||||||||||||||||
Undesignated Derivatives. For the years ended December 31, 2014, 2013 and 2012, the Company recognized a loss of $25 million, a loss of $5 million, and a gain of $14 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. As of December 31, 2014, the Company had not posted any collateral to support its derivatives in a liability position. | ||||||||||||||||||||||||||
Offsetting of Derivative Assets and Liabilities | ||||||||||||||||||||||||||
The following table reflects the fair value of derivative assets and liabilities; the amounts consist of interest rate contracts and foreign currency exchange contracts, none of which are individually significant: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2014 | 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 | $ | 45 | $ | -36 | $ | 9 | $ | 42 | $ | -36 | $ | 6 | ||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||
Foreign Currency | 62 | -36 | 26 | 50 | -36 | 14 |
Debt
Debt | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt | 13. Debt | |||||||||||
Total outstanding debt of the Company consisted of the following: | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Dollars in millions) | ||||||||||||
Short-term debt | $ | 222 | $ | 159 | ||||||||
Long-term debt: | ||||||||||||
6.375% Senior Notes, due 2014 | $ | - | $ | 234 | ||||||||
7.00% Senior Notes, due 2014 | - | 233 | ||||||||||
7.25% Senior Notes, due 2017 | 444 | 446 | ||||||||||
4.50% Senior Notes, due 2021 | 400 | 400 | ||||||||||
4.45% Senior Notes, due 2023 | 400 | 400 | ||||||||||
Exchangeable senior notes, due 2015 | 30 | 134 | ||||||||||
Revolving credit facility | - | - | ||||||||||
Capitalized leases | 14 | 18 | ||||||||||
Other borrowings | 68 | 90 | ||||||||||
Total long-term debt | 1,356 | 1,955 | ||||||||||
Less current portion | 72 | 482 | ||||||||||
Long-term debt, net of current portion | $ | 1,284 | $ | 1,473 | ||||||||
The weighted average interest rate on the Company's debt as of December 31, 2014 and 2013 was 5.4% and 5.9%, respectively. The maturities of long-term debt outstanding as of December 31, 2014 are: | ||||||||||||
Years Ended December 31, | (Dollars in millions) | |||||||||||
2015 | $ | 72 | ||||||||||
2016 | 25 | |||||||||||
2017 | 448 | |||||||||||
2018 | 3 | |||||||||||
2019 | 3 | |||||||||||
Thereafter | 805 | |||||||||||
Total | $ | 1,356 | ||||||||||
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. | ||||||||||||
Senior Note Repurchases. During 2013 and 2012, the Company repurchased portions of its senior notes due in 2014 and 2017 totaling approximately $91 million and $48 million, respectively, in principal amount and recorded a loss on retirement of debt of $5 million in each year, including the write-off of a portion of debt issuance costs, discounts and premiums. The repurchased notes were retired upon settlement. | ||||||||||||
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 December 31, 2014, and as such, the notes are exchangeable in the first quarter of 2015. 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 December 31, 2014 and December 31, 2013 was $1 million and $14 million, respectively. The total interest expense recognized for the years ended December 31, 2014, 2013 and 2012, was approximately $11 million, $13 million and $13 million, respectively, including $5 million, $6 million and $6 million in each respective period relating to the stated coupon rate. | ||||||||||||
Exchangeable Senior Notes—Exchanges. In 2014 and 2013 Exchangeable Senior Note holders exchanged approximately $116 million and $26 million, respectively, in principal amount of notes for 3,937,079 and 880,350 shares, respectively, of Company stock. In conjunction with the exchanges, the Company recorded a loss on retirement of debt of $7 million and $3 million, respectively, including the write-off of a portion of related debt issuance costs and debt discount, as well as a reduction of $289 million and $37 million, respectively, to paid-in-capital relating to the conversion feature of the Exchangeable Senior Notes. | ||||||||||||
Senior Credit Facilities | ||||||||||||
During the third quarter of 2012, the Company entered into its Eighth Amended and Restated Credit Agreement (the “Eighth Credit Agreement”) with the lenders party thereto. 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 conditions described below (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 Company paid fees and expenses totaling approximately $9 million relating to the transaction. For the year ended December 31, 2012, the Company recorded a loss on retirement of debt of $1 million related to the write-off of a portion of debt issuance costs associated with the prior credit agreement. | ||||||||||||
The Revolving Credit Facility will mature on September 28, 2017; provided that if, as of the last fiscal day of October 2016, an aggregate amount of the 7.25% Senior Notes in excess of $100 million remains outstanding and the amount of available liquidity does not exceed the aggregate amount of cash necessary to redeem the 7.25% Senior Notes by at least $500 million, then the maturity date of the Revolving Credit Facility will be 20 business days after such date. | ||||||||||||
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 December 31, 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%. | ||||||||||||
The Company received an investment grade corporate credit rating with a stable outlook from Standard & Poor's Rating Services in the third quarter of 2013. Due to such investment grade rating, under the terms of the Revolving Credit Facility, the Company gave notice which automatically released the collateral securing the obligations under the facility. The Company may be required to reinstate the released collateral if the Company no longer has an investment grade corporate credit rating with a stable outlook from at least one of the required rating agencies. | ||||||||||||
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 December 31, 2014, the Company had short-term borrowings under uncommitted credit facilities totaling $221 million. | ||||||||||||
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. | ||||||||||||
Debt Covenants | ||||||||||||
Senior Notes. The indentures governing the 2007 Senior Notes, 4.50% Senior Notes and 4.45% Senior Notes contain covenants that impose significant restrictions on the Company's business. The indentures for the 2007 Senior Notes contain covenants that could restrict, subject to a number of qualifications and limitations, the ability of TRW Automotive Inc., a wholly owned subsidiary of the Company (“TAI”), and its subsidiaries to pay certain dividends and distributions, or repurchase equity interests of the Company and certain of its subsidiaries (unless certain conditions are met). All the indentures contain covenants that, among other things, could restrict, subject to a number of qualifications and limitations, the ability of TAI and its subsidiaries to incur liens, engage in mergers or consolidations, and enter into sale and leaseback transactions. The indentures for each of the Company's outstanding notes also contain customary events of default. | ||||||||||||
Senior Credit Facilities. The Company's Eighth Credit Agreement contains various customary covenants that could restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to incur additional indebtedness or issue preferred stock; repurchase or repay other indebtedness; repurchase capital stock; pay dividends; create liens on assets; make investments, loans or advances; make certain acquisitions; engage in mergers or consolidations; enter into sale and leaseback transactions; engage in certain transactions with affiliates; amend certain material agreements; and change the business conducted by the Company. | ||||||||||||
As of December 31, 2014, the Company was in compliance with all of its debt covenants. | ||||||||||||
Potential Impact of the ZF Merger. The ZF Merger, if consummated, is expected to cause a change of control triggering event as defined in the Company's respective Senior Note indentures and a fundamental change as defined in the Exchangeable Senior Note indenture. In general, upon the occurrence of a change of control triggering event under the Senior Note indentures, the Company is required to offer to repurchase the Senior Notes, for a certain period of time, at a price of 101% of par, plus accrued and unpaid interest. Upon the occurrence of a fundamental change under the Exchangeable Senior Note indenture, the Company is required to offer to repurchase the Exchangeable Senior Notes, for a certain period of time, at a price of 100% of par, plus accrued and unpaid interest. Additionally, if the ZF Merger is consummated, the Company anticipates terminating the Eighth Credit Agreement. | ||||||||||||
Restructuring_Charges_and_Asse
Restructuring Charges and Asset Impairments | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Restructuring Charges and Asset Impairments [Abstract] | |||||||||||||||||||||||||||
Restructuring Charges and Asset Impairments | 14. Restructuring Charges and Asset Impairments | ||||||||||||||||||||||||||
On an ongoing basis, the Company evaluates its business and objectives to ensure that it is properly configured and sized based on changing market conditions. Accordingly, the Company implements certain restructuring initiatives, including plant rationalizations and targeted workforce reduction efforts, as it deems appropriate. | |||||||||||||||||||||||||||
The Company's restructuring charges consist of severance, retention and outplacement services and severance-related postemployment benefits (collectively, “severance and other charges”), curtailment losses (gains) related to reductions of pension and retiree medical benefit obligations due to headcount reductions, and asset impairments related to restructuring activities. | |||||||||||||||||||||||||||
For the years ended December 31, 2014, 2013, and 2012, restructuring charges and asset impairments include the following: | |||||||||||||||||||||||||||
Occupant | |||||||||||||||||||||||||||
Chassis | Safety | Automotive | |||||||||||||||||||||||||
Systems | Systems | Electronics | Components | ||||||||||||||||||||||||
Segment | Segment | Segment | Segment | Corporate | Total | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
For the year ended December 31, 2014: | |||||||||||||||||||||||||||
Severance and other charges - net | $ | 55 | $ | 7 | $ | - | $ | 4 | $ | - | $ | 66 | |||||||||||||||
Curtailment gain - net | -1 | - | - | - | - | -1 | |||||||||||||||||||||
Asset impairments related to restructuring activities | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Total restructuring charges | 66 | 7 | - | 4 | - | 77 | |||||||||||||||||||||
Other asset impairments | 7 | - | - | - | - | 7 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 73 | $ | 7 | $ | - | $ | 4 | $ | - | $ | 84 | |||||||||||||||
For the year ended December 31, 2013: | |||||||||||||||||||||||||||
Severance and other charges | $ | 22 | $ | 36 | $ | - | $ | -3 | $ | 1 | $ | 56 | |||||||||||||||
Curtailment loss - net | 1 | - | - | - | - | 1 | |||||||||||||||||||||
Asset impairments related to restructuring activities | - | 1 | - | 1 | - | 2 | |||||||||||||||||||||
Total restructuring charges | 23 | 37 | - | -2 | 1 | 59 | |||||||||||||||||||||
Other asset impairments | 4 | - | 1 | 2 | - | 7 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 27 | $ | 37 | $ | 1 | $ | - | $ | 1 | $ | 66 | |||||||||||||||
For the year ended December 31, 2012: | |||||||||||||||||||||||||||
Severance and other charges | $ | 64 | $ | 20 | $ | - | $ | 7 | $ | - | $ | 91 | |||||||||||||||
Asset impairments related to restructuring activities | 2 | - | - | - | - | 2 | |||||||||||||||||||||
Total restructuring charges | 66 | 20 | - | 7 | - | 93 | |||||||||||||||||||||
Other asset impairments | 2 | - | - | - | - | 2 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 68 | $ | 20 | $ | - | $ | 7 | $ | - | $ | 95 | |||||||||||||||
During 2014, 2013, and 2012, the Company incurred restructuring charges as part of the Company's ongoing effort to better align the Company's cost structure with global automotive market conditions. Based on such conditions, primarily within the European and North American automotive market for 2014, and the European automotive market for 2013 and 2012, we incurred the following: | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Closure or planned closure of various facilities | $ | 54 | $ | 31 | $ | 35 | |||||||||||||||||||||
Workforce reduction initiatives | 23 | 28 | 58 | ||||||||||||||||||||||||
Total restructuring charges | $ | 77 | $ | 59 | $ | 93 | |||||||||||||||||||||
Asset impairments related to write-downs of: | |||||||||||||||||||||||||||
Machinery and equipment | $ | 7 | $ | 6 | $ | 2 | |||||||||||||||||||||
Buildings | - | 1 | - | ||||||||||||||||||||||||
Total asset impairments | $ | 7 | $ | 7 | $ | 2 | |||||||||||||||||||||
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: | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Beginning balance | $ | 88 | $ | 121 | |||||||||||||||||||||||
Current period accruals, net of changes in estimates | 66 | 56 | |||||||||||||||||||||||||
Liabilities held-for-sale | -2 | - | |||||||||||||||||||||||||
Used for purposes intended | -69 | -95 | |||||||||||||||||||||||||
Effects of foreign currency translation and transfers | -9 | 6 | |||||||||||||||||||||||||
Ending balance | $ | 74 | $ | 88 | |||||||||||||||||||||||
Of the $74 million restructuring reserve accrued as of December 31, 2014, approximately $70 million is expected to be paid in 2015. The remaining balance is expected to be paid in 2016 through 2017 and is comprised primarily of involuntary employee termination arrangements in Europe. | |||||||||||||||||||||||||||
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |||||||||||
Lease Commitments | 15. Lease Commitments | ||||||||||
The Company leases certain offices, manufacturing and research buildings, machinery, automobiles and computer and other equipment. Such leases, some of which are noncancelable and in many cases include renewals, are set to expire at various dates. Rental expense for operating leases was $110 million, $111 million, and $112 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||
As of December 31, 2014, the future minimum lease payments for noncancelable capital and operating leases with initial terms in excess of one year were as follows: | |||||||||||
Capital | Operating | ||||||||||
Years Ended December 31, | Leases | Leases | |||||||||
(Dollars in millions) | |||||||||||
2015 | $ | 3 | $ | 60 | |||||||
2016 | 3 | 51 | |||||||||
2017 | 3 | 47 | |||||||||
2018 | 3 | 43 | |||||||||
2019 | 2 | 48 | |||||||||
Thereafter | 3 | 54 | |||||||||
Total minimum payments required | $ | 17 | $ | 303 | |||||||
Less amounts representing interest | 3 | ||||||||||
Present value of net minimum capital lease payments | 14 | ||||||||||
Less current installments | 2 | ||||||||||
Obligations under capital leases, excluding current installments | $ | 12 |
Transaction_Costs
Transaction Costs | 12 Months Ended |
Dec. 31, 2014 | |
Transaction Costs [Abstract] | |
Transaction Costs [Text Block] | 16. Transaction Costs |
The Company incurred transaction and merger-related costs of $20 million for financial advisory and legal fees related to the ZF Merger (see Note 2) and the engine valve divestiture (see Note 4) for the year ended December 31, 2014. | |
Capital_Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2014 | |
Capital Stock [Abstract] | |
Capital Stock Disclosure [Text Block] | 17. Capital Stock |
The Company's authorized capital stock consists of (i) 500 million shares of common stock, par value $.01 per share (the “Common Stock”), of which 114,547,079 shares were issued and outstanding as of December 31, 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 18). | |
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. Upon settlement in the third quarter of 2014, the Company received approximately 0.7 million additional shares, resulting in an overall weighted average price per share of $88.08 under the ASR agreement. Of the total number of shares repurchased, 1.5 million shares were purchased under the Anti-Dilution Program and approximately 3.1 million shares were purchased under the $2 Billion Program. | |
Pursuant to the terms of the Merger Agreement with ZF, the Company is restricted from repurchasing additional shares of its common stock under the share repurchase programs without ZF's consent. | |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Share-Based Compensation [Abstract] | ||||||||||||||||||
Share-Based Compensation | 18. Share-Based Compensation | |||||||||||||||||
Equity Awards | ||||||||||||||||||
Effective in February 2003, the Company established the TRW Automotive Holdings Corp. 2003 Stock Incentive Plan (as amended, the “2003 Plan”), under which stock options, stock appreciation rights, and restricted stock units remain outstanding. Effective in May 2012, the Company's shareholders approved the TRW Automotive Holdings Corp. 2012 Stock Incentive Plan (the “2012 Plan” and, together with the 2003 Plan, the “Plan”). The 2012 Plan permits the grant of up to 6.15 million stock options, stock appreciation rights, restricted stock units and other stock-based awards to the employees, directors or consultants of the Company or its affiliates. As a result of the shareholders' approval of the 2012 Plan, no new awards will be granted under the 2003 Plan. Further, pursuant to the terms of the Merger Agreement with ZF, the Company is restricted from issuing additional equity awards under the Plan without ZF's consent although alternate non-equity based awards may be awarded. | ||||||||||||||||||
As of December 31, 2014, the Company had 3,379,736 shares of Common Stock available for issuance under the 2012 Plan. In addition, 214,663 stock options, 2,320,699 SSARs, 676,131 nonvested RSUs, 12,650 nonvested PSUs, and Performance Units under which up to 70,425 shares may be issued (based on maximum performance thereunder) were outstanding as of December 31, 2014. Under the terms of the respective grants, 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, a majority of the PSUs cliff vest after three years and Performance Units cliff vest after their three-year performance period. 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. | ||||||||||||||||||
The significant equity award grants during 2014, 2013 and 2012 are as follows: | ||||||||||||||||||
February 21, | February 22, | February 23, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
SSARs | RSUs | SSARs | RSUs | SSARs | RSUs | |||||||||||||
Number Granted | 850,900 | 284,723 | 1,199,551 | 428,169 | 1,282,518 | 515,523 | ||||||||||||
Grant date fair market value | $ | 82.5 | $ | 58.2 | $ | 45.11 | ||||||||||||
Maximum value | $ | 130 | $ | 110 | $ | 95 | ||||||||||||
The exercise price of the SSARs and stock options is equal to the fair market value under the applicable plan of the Company common stock on the grant date. For awards granted in 2014 and 2013, the fair market value is the closing stock price. For awards granted in 2012, the fair market value is calculated as the average of the high and low stock price. | ||||||||||||||||||
The total share-based compensation expense recognized for the Plan was as follows: | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SSARs and stock options | $ | 9 | $ | 10 | $ | 5 | ||||||||||||
RSUs | 24 | 26 | 16 | |||||||||||||||
Performance Units | 3 | - | - | |||||||||||||||
Total share-based compensation expense | $ | 36 | $ | 36 | $ | 21 | ||||||||||||
The Company uses historical data to estimate SSAR and option exercise and employee termination assumptions within the Black-Scholes option pricing valuation model. The expected volatilities are primarily developed using historical data of the Company. The expected life of SSARs and options granted represents the period of time that they are expected to be outstanding. The risk free rate is based on U.S. Treasury zero-coupon yield curves with a remaining term equal to the expected SSAR and option life. | ||||||||||||||||||
Fair value for SSARs was estimated at the date of grant using the Black-Scholes option pricing model using the following weighted-average assumptions: | ||||||||||||||||||
February 21, | February 22, | February 23, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Expected volatility | 61.10% | 79.30% | 79.30% | |||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||||||||||||||
Expected life | 5.0 years | 5.0 years | 5.0 years | |||||||||||||||
Risk-free rate | 1.53% | 0.83% | 0.89% | |||||||||||||||
A summary of SSAR and stock option activity under the Plan and changes for the year ended December 31, 2014 is presented below: | ||||||||||||||||||
Weighted- | ||||||||||||||||||
Weighted- | Average | |||||||||||||||||
Thousands of | Average | Remaining | Aggregate | |||||||||||||||
Options | Exercise | Contractual | Intrinsic | |||||||||||||||
and SSARs | Price | Term | Value | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Outstanding as of January 1, 2014 | 3,572 | $ | 47.88 | |||||||||||||||
Granted | 851 | 82.5 | ||||||||||||||||
Exercised | -1,786 | 45.89 | ||||||||||||||||
Forfeited or expired | -102 | 52.09 | ||||||||||||||||
Outstanding as of December 31, 2014 | 2,535 | 60.73 | 6 | $ | 104 | |||||||||||||
Exercisable as of December 31, 2014 | 577 | $ | 42.01 | 4.5 | $ | 35 | ||||||||||||
The weighted-average grant-date fair value of SSARs granted during the years ended December 31, 2014, 2013 and 2012 was $9.29, $7.23, and $6.58, respectively. The total intrinsic value of SSARs and stock options exercised during the years ended December 31, 2014, 2013 and 2012 was $85 million, $57 million and $26 million, respectively. | ||||||||||||||||||
A summary of the status of the Company's nonvested RSUs as of December 31, 2014, and changes during the year ended December 31, 2014, is presented below: | ||||||||||||||||||
Weighted- | ||||||||||||||||||
Thousands of | Average | |||||||||||||||||
Restricted | Grant-Date | |||||||||||||||||
Stock Units | Fair Value | |||||||||||||||||
Nonvested Units | ||||||||||||||||||
Nonvested as of January 1, 2014 | 805 | $ | 52.96 | |||||||||||||||
Granted | 299 | 82.44 | ||||||||||||||||
Vested | -384 | 52.36 | ||||||||||||||||
Forfeited | -44 | 59.66 | ||||||||||||||||
Nonvested as of December 31, 2014 | 676 | $ | 65.92 | |||||||||||||||
In addition, 142,911 of the outstanding RSUs are applicable to retirement eligible employees as of December 31, 2014. | ||||||||||||||||||
The total fair value of RSUs vested and distributed during the years ended December 31, 2014, 2013 and 2012 were $32 million, $26 million and $22 million, respectively. | ||||||||||||||||||
As of December 31, 2014, there was $24 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. Such cost is expected to be recognized over a weighted-average period of approximately two years. | ||||||||||||||||||
Potential Impact of the ZF Merger on Equity Awards | ||||||||||||||||||
If consummated, at the effective time of the ZF Merger, (i) all then-outstanding Company stock options, RSUs, PSUs and Performance Units (which will vest at the “maximum level” of performance), whether vested or unvested, will be converted into the right to receive the Merger Consideration, less the exercise price of such awards, if any, and (ii) all then-outstanding Company SSARs, whether vested or unvested, will be converted into the right to receive an amount in cash equal to the excess of the lesser of the Merger Consideration and the “maximum value” of such SSAR over the fair market value per share at the relevant grant date. | ||||||||||||||||||
Cash Awards | ||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recognized compensation expense associated with its cash-settled share-based compensation and retention awards of de minimis, $1 million and $4 million, respectively. During 2014, the final tranche of the cash incentive awards granted in 2011 were paid to fully satisfy the obligation for these awards. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 19. 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 December 31, 2014, and 2013, the Company had reserves for environmental matters of $71 million and $68 million, respectively. 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 3. | |
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 amounts that are immaterial to the Company, certain purported class action lawsuits filed on behalf of vehicle purchasers, lessors, dealers, and direct purchasers 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 May 2014 in, or 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. The Company has also settled, for an amount that is immaterial to the Company, similar cases filed in various courts in Canada on behalf of vehicle purchasers, lessors, dealers and direct purchasers. | |
Transaction Litigation | |
Following the announcement of the execution of the Merger Agreement on September 15, 2014, the Company, members of our board of directors, ZF, Merger Sub and others have been named as defendants in one or more of the purported class actions filed by purported stockholders of the Company challenging the proposed ZF Merger. The actions seek, among other forms of relief, an order enjoining the ZF Merger, rescinding the Merger Agreement to the extent it has already been implemented, and awarding attorneys' fees and costs. On November 12, 2014, plaintiffs, the Company and other named defendants entered into a memorandum of understanding (the “MOU”) agreeing in principle to settle all pending actions in exchange for the Company's agreement to make certain supplemental disclosures, which were filed on the same date in a supplement to TRW's October 20, 2014 definitive proxy statement. Pursuant to the MOU, the parties intend to settle, subject to court approval, certain claims, while the other pending litigation will be dismissed. The Company anticipates the litigation will be resolved and will not interfere with or delay the closing, but until court approval is obtained and the cases are dismissed, some uncertainty remains. The settlement contemplated by the MOU is not, and should not be construed as, an admission of wrongdoing or liability by any defendant. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||||||||
Segment Information | 20. Segment Information | |||||||||||||||||||||
The Company is a U.S.-based international business providing advanced technology products and systems for the automotive markets. The Company has four reportable segments: Chassis Systems, Occupant Safety Systems, Electronics and Automotive Components. | ||||||||||||||||||||||
The principal customers for the Company's automotive products are the North American, European and Asian vehicle manufacturers. | ||||||||||||||||||||||
Segment Information. The Company designs, manufactures and sells a broad range of steering, suspension and braking products, seat belts, airbags, steering wheels, safety electronics, engine valves, engineered fasteners, body control systems, and other components and systems for passenger cars, light trucks and commercial vehicles. A description of the products and services provided by each of the segments follows. | ||||||||||||||||||||||
Chassis Systems — Active safety systems and other systems and components in the area of foundation brakes, anti-lock braking systems and other brake control systems (including electronic vehicle stability control), steering gears and systems (including electric power steering), linkage and suspension and modules. | ||||||||||||||||||||||
Occupant Safety Systems — Passive safety systems and components in the areas of airbags, seat belts and steering wheels. | ||||||||||||||||||||||
Electronics — Safety, radio frequency, chassis, and powertrain electronics and camera- and radar-based driver assistance systems. | ||||||||||||||||||||||
Automotive Components — Body controls, engine valves, and engineered fasteners and plastic components (see Note 4). | ||||||||||||||||||||||
The accounting policies of the segments are the same as those described in Note 3 under “Summary of Significant Accounting Policies.” The Company evaluates operating performance based on segment earnings before taxes and segment assets. | ||||||||||||||||||||||
The following income and expense items are not included in segment earnings before taxes: | ||||||||||||||||||||||
• Corporate expense and other, which primarily represents costs associated with corporate staff and related expenses, including certain litigation and net employee benefits income (expense). | ||||||||||||||||||||||
• Financing costs, which represents debt-related interest and accounts receivable securitization costs. | ||||||||||||||||||||||
• Gain (loss) on retirement of debt. | ||||||||||||||||||||||
The following tables present certain financial information by segment: | ||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Sales to external customers: | ||||||||||||||||||||||
Chassis Systems | $ | 11,354 | $ | 11,492 | $ | 10,685 | ||||||||||||||||
Occupant Safety Systems | 3,357 | 3,314 | 3,287 | |||||||||||||||||||
Electronics | 937 | 721 | 654 | |||||||||||||||||||
Automotive Components | 1,891 | 1,908 | 1,818 | |||||||||||||||||||
Total sales to external customers | $ | 17,539 | $ | 17,435 | $ | 16,444 | ||||||||||||||||
Intersegment sales: | ||||||||||||||||||||||
Chassis Systems | $ | 16 | $ | 14 | $ | 20 | ||||||||||||||||
Occupant Safety Systems | 139 | 130 | 90 | |||||||||||||||||||
Electronics | 609 | 543 | 514 | |||||||||||||||||||
Automotive Components | 74 | 75 | 80 | |||||||||||||||||||
Total intersegment sales | $ | 838 | $ | 762 | $ | 704 | ||||||||||||||||
Total segment sales: | ||||||||||||||||||||||
Chassis Systems | $ | 11,370 | $ | 11,506 | $ | 10,705 | ||||||||||||||||
Occupant Safety Systems | 3,496 | 3,444 | 3,377 | |||||||||||||||||||
Electronics | 1,546 | 1,264 | 1,168 | |||||||||||||||||||
Automotive Components | 1,965 | 1,983 | 1,898 | |||||||||||||||||||
Total segment sales | $ | 18,377 | $ | 18,197 | $ | 17,148 | ||||||||||||||||
Earnings before taxes: | ||||||||||||||||||||||
Chassis Systems | $ | 831 | $ | 841 | $ | 669 | ||||||||||||||||
Occupant Safety Systems | 282 | 239 | 254 | |||||||||||||||||||
Electronics | 144 | 126 | 132 | |||||||||||||||||||
Automotive Components | 168 | 150 | 115 | |||||||||||||||||||
Segment earnings before taxes | 1,425 | 1,356 | 1,170 | |||||||||||||||||||
Corporate expense and other | -920 | -120 | -78 | |||||||||||||||||||
Interest expense — net | -109 | -132 | -111 | |||||||||||||||||||
Loss on retirement of debt — net | -7 | -20 | -6 | |||||||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 41 | 37 | 33 | |||||||||||||||||||
Earnings before income taxes | $ | 430 | $ | 1,121 | $ | 1,008 | ||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||
Chassis Systems | $ | 418 | $ | 461 | $ | 364 | ||||||||||||||||
Occupant Safety Systems | 118 | 112 | 104 | |||||||||||||||||||
Electronics | 70 | 80 | 61 | |||||||||||||||||||
Automotive Components | 76 | 77 | 86 | |||||||||||||||||||
Corporate | 12 | 5 | 8 | |||||||||||||||||||
$ | 694 | $ | 735 | $ | 623 | |||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||
Chassis Systems | $ | 250 | $ | 243 | $ | 228 | ||||||||||||||||
Occupant Safety Systems | 83 | 79 | 80 | |||||||||||||||||||
Electronics | 51 | 42 | 38 | |||||||||||||||||||
Automotive Components | 55 | 63 | 60 | |||||||||||||||||||
Corporate | 5 | 3 | 3 | |||||||||||||||||||
$ | 444 | $ | 430 | $ | 409 | |||||||||||||||||
The Company accounts for intersegment sales or transfers at current market prices. | ||||||||||||||||||||||
The following table presents certain balance sheet information by segment: | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Segment assets: | ||||||||||||||||||||||
Chassis Systems | $ | 5,842 | $ | 5,632 | ||||||||||||||||||
Occupant Safety Systems | 2,024 | 2,162 | ||||||||||||||||||||
Electronics | 1,247 | 1,019 | ||||||||||||||||||||
Automotive Components | 803 | 852 | ||||||||||||||||||||
Segment assets | 9,916 | 9,665 | ||||||||||||||||||||
Corporate assets | 812 | 2,047 | ||||||||||||||||||||
Segment and corporate assets | 10,728 | 11,712 | ||||||||||||||||||||
Deferred tax assets | 566 | 540 | ||||||||||||||||||||
Total assets | $ | 11,294 | $ | 12,252 | ||||||||||||||||||
Corporate assets principally consist of cash and cash equivalents and pension assets. | ||||||||||||||||||||||
Geographic Information. The following table presents certain information concerning principal geographic areas: | ||||||||||||||||||||||
United | Rest of | |||||||||||||||||||||
States | China | Germany | World | Total | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Sales to external customers: | ||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 4,496 | $ | 3,131 | $ | 2,097 | $ | 7,815 | $ | 17,539 | ||||||||||||
Year Ended December 31, 2013 | 4,992 | 2,758 | 2,199 | 7,486 | 17,435 | |||||||||||||||||
Year Ended December 31, 2012 | 4,713 | 2,201 | 2,330 | 7,200 | 16,444 | |||||||||||||||||
Property, plant and equipment - net: | ||||||||||||||||||||||
As of December 31, 2014 | $ | 567 | $ | 565 | $ | 394 | $ | 1,119 | $ | 2,645 | ||||||||||||
As of December 31, 2013 | 534 | 478 | 430 | 1,276 | 2,718 | |||||||||||||||||
As of December 31, 2012 | 563 | 357 | 403 | 1,062 | 2,385 | |||||||||||||||||
Sales are attributable to geographic areas based on the location of the assets generating the sales. Inter-area sales are not significant to the total sales of any geographic area. | ||||||||||||||||||||||
Customer Concentration. Sales to the Company's largest-end-customers (including sales within the vehicle manufacturer's group) on a worldwide basis are as follows: | ||||||||||||||||||||||
Fiat | ||||||||||||||||||||||
Ford | Chrysler | Aggregate | ||||||||||||||||||||
Volkswagen | Motor | Automobiles | General | Percent of | ||||||||||||||||||
AG | Company | N.V.(a) | Motors | Total Sales | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 4,525 | $ | 3,210 | $ | 2,368 | $ | 1,288 | 64.90% | |||||||||||||
Year Ended December 31, 2013 | 4,298 | 3,234 | 2,359 | 1,757 | 66.80% | |||||||||||||||||
Year Ended December 31, 2012 | 3,863 | 2,897 | 2,290 | 1,649 | 65.10% | |||||||||||||||||
(a) | Effective in 2014, Fiat Chrysler Automobiles N.V. includes FCA US LLC (formerly known as Chrysler Group LLC), which was shown on a standalone basis for the years ended 2013 and 2012. | |||||||||||||||||||||
Unconsolidated_Affiliates
Unconsolidated Affiliates | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Unconsolidated Affiliates [Abstract] | ||||||||||||
Unconsolidated Affiliates [Text Block] | 21. Unconsolidated Affiliates | |||||||||||
As of December 31, 2014 and 2013, the Company's investment in affiliates was $231 million and $207 million, respectively. | ||||||||||||
The Company's beneficial ownership in affiliates accounted for under the equity method follows: | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
SM-Sistemas Modulares Ltda. (Brazil) | 50% | 50% | 50% | |||||||||
ABC Sistemas E Modulos Ltda. (Brazil) | 33% | 33% | 33% | |||||||||
CSG TRW Chassis Systems Co., Ltd. (China) | 50% | 50% | 50% | |||||||||
Shanghai TRW Automotive Safety Systems Company Ltd. (China) | 50% | 50% | 50% | |||||||||
Shin-Han (Beijing) Automobile Parts System Co., Ltd (China)(a) | 30% | 30% | 30% | |||||||||
Fuji Valve (Guangdong) Co., Ltd. (China)(a) | 25% | 25% | 25% | |||||||||
TH Braking Company S.A.S. (France) | 50% | 50% | 50% | |||||||||
Rane TRW Steering Systems Limited (India) | 50% | 50% | 50% | |||||||||
Brakes India Limited (India) | 49% | 49% | 49% | |||||||||
TRW Sun Steering Wheels Private Limited (India) | 49% | 49% | 49% | |||||||||
Evercast, S.A. de C.V. (Mexico) | 30% | - | - | |||||||||
Shin Han Valve Industrial Company, Ltd. (South Korea)(a) | 25% | 25% | 25% | |||||||||
Componentes Venezolanos de Direccion, S.A. (Venezuela)(a) | 40% | 40% | 40% | |||||||||
(a) | These affiliates are classified as held-for-sale (see Note 4). |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) [Abstract] | ||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) [Text Block] | 22. Quarterly Financial Information (Unaudited) | |||||||||||||||||||||||||
For the 2014 Quarter Ended | For the 2013 Quarter Ended | |||||||||||||||||||||||||
28-Mar | 27-Jun | 26-Sep | 31-Dec | 29-Mar | 28-Jun | 27-Sep | 31-Dec | |||||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||||||||||||
Sales | $ | 4,442 | $ | 4,593 | $ | 4,156 | $ | 4,348 | $ | 4,213 | $ | 4,514 | $ | 4,212 | $ | 4,496 | ||||||||||
Gross profit | 500 | 567 | 475 | 524 | 427 | 531 | 450 | 522 | ||||||||||||||||||
Pension and postretirement benefit settlement and curtailment expenses | - | - | - | 790 | - | - | - | 31 | ||||||||||||||||||
Restructuring charges and asset impairments | 20 | 6 | 10 | 48 | 37 | 1 | 5 | 23 | ||||||||||||||||||
Loss on retirement of debt - net | - | - | - | 7 | - | 5 | - | 15 | ||||||||||||||||||
Earnings (loss) before income taxes | 287 | 367 | 278 | -502 | 235 | 357 | 268 | 261 | ||||||||||||||||||
Net earnings (loss) attributable to TRW | 199 | 265 | 189 | -360 | 162 | 248 | 197 | 363 | ||||||||||||||||||
Basic earnings (loss) per share | $ | 1.76 | $ | 2.39 | $ | 1.7 | $ | -3.22 | $ | 1.35 | $ | 2.09 | $ | 1.68 | $ | 3.15 | ||||||||||
Diluted earnings (loss) per share | $ | 1.68 | $ | 2.27 | $ | 1.61 | $ | -3.22 | $ | 1.29 | $ | 1.99 | $ | 1.6 | $ | 3 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II | |||||||||||||||
Valuation and Qualifying Accounts for | ||||||||||||||||
the years ended December 31, 2014, 2013 and 2012 | ||||||||||||||||
Charged | ||||||||||||||||
Balance at | Charged to | (Credited) | Balance at | |||||||||||||
Beginning | Costs and | to Other | End of | |||||||||||||
of Period | Expenses | Accounts | Deductions | Period | ||||||||||||
(Dollars in millions) | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Allowance for doubtful accounts | $ | 29 | $ | 4 | $ | - | $ | (7)(a) | $ | 26 | ||||||
Deferred tax asset valuation allowance | 295 | 7 | -28 | - | 274 | |||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Allowance for doubtful accounts | $ | 30 | $ | 4 | $ | - | $ | (5)(a) | $ | 29 | ||||||
Deferred tax asset valuation allowance | 250 | 17 | 28 | - | 295 | |||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Allowance for doubtful accounts | $ | 38 | $ | -1 | $ | - | $ | (7)(a) | $ | 30 | ||||||
Deferred tax asset valuation allowance | 273 | -63 | 40 | - | 250 | |||||||||||
____________ | ||||||||||||||||
(a) Uncollectible accounts written off, net of recoveries. | ||||||||||||||||
The other schedules have been omitted because they are not applicable or are not required or the information to be set forth therein is included in the Consolidated Financial Statements or notes thereto. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Basis of Presentation and Summary of Significant Acconting Policies [Abstract] | |||||
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements reflect the financial position and operating results of the Company, including wholly owned subsidiaries and investees that the Company controls. Investments in entities that the Company does not control, but has the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. Investments in entities in which the Company does not have the ability to exercise significant influence are accounted for under the cost method. Noncontrolling interests in consolidated subsidiaries in the consolidated balance sheets represent minority stockholders' proportionate share of the equity in such subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | ||||
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and reported amounts of revenues and expenses in the consolidated statements of earnings. Considerable judgment is often involved in making these determinations; the use of different assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results could differ from those estimates. | ||||
Foreign Currency | Foreign Currency. The financial statements of foreign subsidiaries are translated to U.S. dollars at end-of-period exchange rates for assets and liabilities and at an average exchange rate for each period for revenues and expenses. Translation adjustments for those subsidiaries whose local currency is their functional currency are recorded as a component of accumulated other comprehensive earnings (losses) in stockholders' equity. Transaction gains and losses arising from fluctuations in foreign currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in earnings as incurred, except for those transactions which hedge purchase commitments and for those intercompany balances which are designated as being of a long-term investment nature. | ||||
Revenue Recognition | Revenue Recognition. Sales are recognized when there is persuasive evidence of a sales agreement, the delivery of goods has occurred, the sales price is fixed or determinable and collection of related billings is reasonably assured. Sales are recorded upon shipment of product to customers and transfer of title and risk of loss under standard commercial terms (typically F.O.B. shipping point). In those limited instances where other terms are negotiated and agreed, revenue is recorded when title and risk of loss are transferred to the customer. | ||||
Earnings 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, RSUs, SSARs and Performance Units. Further, if the inclusion of shares potentially issuable for the Company's 3.50% exchangeable senior unsecured notes (see Note 13) 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 grant date fair market value per share of the Company's stock for SSARs, the treasury stock method is used to determine the incremental number of shares to be included in the diluted earnings per share computation. | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents include all highly liquid investments with remaining maturity dates of three months or less at time of purchase. | ||||
Accounts Receivable | Accounts Receivable. Receivables are stated at amounts estimated by management to be the net realizable value. An allowance for doubtful accounts is recorded when it is probable amounts will not be collected based on specific identification of customer circumstances or age of the receivable. The allowance for doubtful accounts was $26 million and $29 million as of December 31, 2014 and 2013, respectively. Accounts receivable are written off when it becomes apparent such amounts will not be collected. Collateral is not typically required, nor is interest charged on accounts receivable balances. | ||||
Inventories | Inventories. Inventories are stated at the lower of cost or market, with cost determined by the first-in, first-out (FIFO) method. Cost includes the cost of materials, direct labor, in-bound freight and the applicable share of manufacturing overhead. | ||||
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Generally, estimated useful lives are as follows: | ||||
Estimated | |||||
Useful Lives | |||||
Buildings | 30 to 40 years | ||||
Machinery and equipment | 5 to 10 years | ||||
Computers and capitalized software | 3 to 5 years | ||||
Depreciation is computed over the assets' estimated useful lives, using the straight-line method for the majority of depreciable assets. Amortization expense for assets held under capital leases is included in depreciation expense. | |||||
Product Tooling | Product Tooling. Product tooling is tooling that is limited to the manufacture of a specific part or parts of the same basic design. Product tooling includes dies, patterns, molds and jigs. Customer-owned tooling for which reimbursement was contractually guaranteed by the customer is classified in other assets on the consolidated balance sheets. When contractually guaranteed charges are approved for billing to the customer, such charges are reclassified into accounts receivable. Tooling owned by the Company is capitalized as property, plant and equipment, and amortized as cost of sales over its estimated economic life, not to exceed five years. | ||||
Pre-production Costs | Pre-production Costs. Pre-production engineering and research and development costs for which the customer does not contractually guarantee reimbursement are expensed as incurred. | ||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. The Company performs either a quantitative or qualitative assessment of goodwill for impairment on an annual basis or more frequently if an event occurs or circumstances indicate the carrying amount may be impaired. Goodwill impairment testing is performed at the reporting unit level. To quantitatively test goodwill for impairment, the fair value of each reporting unit is determined and compared to the carrying value. If the carrying value exceeds the fair value, then impairment may exist and further evaluation is required. The qualitative assessment considers several factors at the reporting unit level including the excess of fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market and industry metrics, actual performance compared to forecasted performance, and our current outlook on the business. If the qualitative assessment indicates it is more likely than not that goodwill is impaired, the reporting unit is quantitatively tested for impairment. | ||||
Other indefinite-lived intangible assets are subject to impairment analysis annually. Indefinite-lived intangible assets are tested for impairment by comparing the fair value to the carrying value. If the carrying value exceeds the fair value, the asset is adjusted to fair value. Definite-lived intangible assets are amortized over their estimated useful lives, and tested for impairment in accordance with the methodology discussed in “Asset Impairment Losses.” | |||||
Asset Impairment Losses | Asset Impairment Losses. Asset impairment losses are recorded on long-lived assets and definite-lived intangible assets when events and circumstances indicate that such assets may be impaired and the projected undiscounted net cash flows to be generated by those assets are less than their carrying amounts. If estimated future undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are adjusted to their fair values. Fair value is determined using appraisals or discounted cash flow calculations. | ||||
Environmental Costs | Environmental Costs. Costs related to environmental assessments and remediation efforts at current operating facilities, previously owned or operated facilities, and U.S. Environmental Protection Agency Superfund or other waste site locations are accrued when it is probable that a liability has been incurred and the amount of that liability can be reasonably estimated. Estimated costs are recorded at undiscounted amounts, based on experience and assessments, and are regularly evaluated. The liabilities are recorded in other current liabilities and long-term liabilities in the consolidated balance sheets. | ||||
Debt Issuance Costs | Debt Issuance Costs. The costs related to the issuance of long-term debt are deferred and amortized into interest expense over the life of each respective debt issuance. Deferred amounts associated with debt extinguished prior to maturity are expensed upon extinguishment as a loss on retirement of debt. | ||||
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. | ||||
Product Recall | Product Recall. Recall costs typically include the cost of the product being replaced, customer cost of the recall and labor to remove and replace the defective part. Recall costs are recorded based on management estimates developed utilizing actuarially established loss projections based on historical claims data. Based on this actuarial estimation methodology, the Company accrues for expected but unannounced recalls when revenues are recognized upon the shipment of product. In addition, as recalls are announced, the Company reviews the actuarial estimation methodology and makes the appropriate adjustments to the accrual, if necessary. | ||||
Research and Development | Research and Development. Research and development programs include research and development for commercial products. Costs for such programs are expensed as incurred. Any reimbursements received from customers are netted against such expenses. Research and development expenses were $230 million, $193 million, and $164 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||
Shipping and Handling | Shipping and Handling. Shipping costs include payments to third-party shippers to move products to customers. Handling costs include costs from the point the products were removed from finished goods inventory to when provided to the shipper. Shipping and handling costs are expensed as incurred as cost of sales. | ||||
Income Taxes | Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized to reduce the deferred tax assets to the amount management believes is more likely than not to be realized. | ||||
Financial Instruments | Financial Instruments. Gains or losses on derivative instruments that have been designated and qualify as hedges of the exposure to changes in the fair value of an asset or a liability, as well as the offsetting gain or loss on the hedged item, are recognized in net earnings during the period of the change in fair values. For derivative instruments that have been designated and qualify as hedges of the exposure to variability in expected future cash flows, the gain or loss on the derivative is initially reported as a component of other comprehensive earnings and reclassified to the consolidated statements of earnings when the underlying hedged transaction affects net earnings. Any gain or loss on the derivative in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in net earnings during the period of change. Derivatives not designated as hedges are adjusted to fair value through net earnings. | ||||
Share-based Compensation | Share-based Compensation. The Company recognizes compensation expense related to Performance Units subject to cliff vesting and time-vested stock options, SSARs, and RSUs subject to graded vesting using the straight-line method over the applicable service period. Share-based awards that are settled in cash are subject to liability accounting. Accordingly, the fair value for such awards is calculated on a quarterly basis, and the liability is adjusted and expense is recognized, based on changes to the percentage of time vested. | ||||
Recently Adopted Accounting Pronouncements | Recently Adopted or Issued 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 applied 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. | ||||
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 continues to assess the potential impact on its operations and financial statements. |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Basis of Presentation and Summary of Significant Acconting Policies [Abstract] | ||||||||||||||||||||
Net Earnings (Losses) Attributable to TRW and Weighted Average Shares Outstanding | Net earnings attributable to TRW and the weighted average shares outstanding used in calculating basic and diluted earnings per share were: | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Net earnings attributable to TRW | $ | 293 | $ | 970 | $ | 1,008 | ||||||||||||||
Interest expense on exchangeable notes, net of tax | 3 | 4 | 4 | |||||||||||||||||
Amortization of discount on exchangeable notes, net of tax | 4 | 4 | 4 | |||||||||||||||||
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | $ | 300 | $ | 978 | $ | 1,016 | ||||||||||||||
Basic: | ||||||||||||||||||||
Weighted average shares outstanding | 111.7 | 117.6 | 122.4 | |||||||||||||||||
Basic earnings per share | $ | 2.62 | $ | 8.25 | $ | 8.24 | ||||||||||||||
Diluted: | ||||||||||||||||||||
Weighted average shares outstanding | 111.7 | 117.6 | 122.4 | |||||||||||||||||
Effect of dilutive stock options, RSUs and SSARs | 1.6 | 1.3 | 1.4 | |||||||||||||||||
Shares applicable to exchangeable notes | 4.7 | 5.7 | 5.9 | |||||||||||||||||
Diluted weighted average shares outstanding | 118 | 124.6 | 129.7 | |||||||||||||||||
Diluted earnings per share | $ | 2.54 | $ | 7.85 | $ | 7.83 | ||||||||||||||
Property, Plant and Equipment Estimated Useful Lives | Estimated | |||||||||||||||||||
Useful Lives | ||||||||||||||||||||
Buildings | 30 to 40 years | |||||||||||||||||||
Machinery and equipment | 5 to 10 years | |||||||||||||||||||
Computers and capitalized software | 3 to 5 years | |||||||||||||||||||
Movement in Product Warranty Liability | The following table presents the movement in the product warranty liability for the periods indicated: | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Beginning balance | $ | 152 | $ | 140 | ||||||||||||||||
Current period accruals, net of changes in estimates | 53 | 58 | ||||||||||||||||||
Liabilities held-for-sale | -2 | - | ||||||||||||||||||
Used for purposes intended | -40 | -47 | ||||||||||||||||||
Effects of foreign currency translation | -9 | 1 | ||||||||||||||||||
Ending balance | $ | 154 | $ | 152 | ||||||||||||||||
Components of Accumulated Other Comprehensive Earnings (Losses) | Foreign Currency Translation | Retirement Obligations | Deferred Cash Flow Hedges | Total | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
For the year ended December 31, 2014: | ||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 41 | $ | -405 | $ | -16 | $ | -380 | ||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | -266 | -96 | -1 | -363 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | -(a) | 4 | 4 | ||||||||||||||||
Other comprehensive earnings (losses), net of tax | -266 | -96 | 3 | -359 | ||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | -225 | $ | -501 | $ | -13 | $ | -739 | ||||||||||||
For the year ended December 31, 2013: | ||||||||||||||||||||
Beginning balance attributable to TRW, net of tax | $ | 83 | $ | -559 | $ | 10 | $ | -466 | ||||||||||||
Other comprehensive earnings (losses) before reclassifications, net of tax | -42 | 134 | -25 | 67 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax | - | 20(b) | -1 | 19 | ||||||||||||||||
Other comprehensive earnings (losses), net of tax | -42 | 154 | -26 | 86 | ||||||||||||||||
Ending balance attributable to TRW, net of tax | $ | 41 | $ | -405 | $ | -16 | $ | -380 | ||||||||||||
(a) | Includes actuarial gains of $12 million, reduced by prior service cost of $12 million, net of de minimis tax. | |||||||||||||||||||
(b) | Includes actuarial gains of $46 million, reduced by prior service cost of $17 million, net of tax of $9 million. |
Assets_Held_for_Sale_Tables
Assets Held for Sale (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Assets Held for Sale [Abstract] | |||||||||||||||
Schedule of Assets and Liabilities Held for Sale [Table Text Block] | As of | ||||||||||||||
31-Dec-14 | |||||||||||||||
(Dollars in millions) | |||||||||||||||
Cash | $ | 10 | |||||||||||||
Accounts receivable — net | 23 | ||||||||||||||
Inventories | 44 | ||||||||||||||
Prepaid expenses and other current assets | 6 | ||||||||||||||
Property, plant and equipment — net | 158 | ||||||||||||||
Other assets | 11 | ||||||||||||||
Total assets held-for-sale | $ | 252 | |||||||||||||
Trade accounts payable | $ | 24 | |||||||||||||
Accrued compensation | 15 | ||||||||||||||
Other current liabilities | 24 | ||||||||||||||
Pension and defined contribution benefits | 41 | ||||||||||||||
Total liabilities related to assets held-for-sale | $ | 104 | |||||||||||||
Earnings before income taxes for the engine valve business were as follows: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | |||||||||||||||
Earnings before income taxes | $ | 47 | $ | 39 | $ | 42 | |||||||||
Less: Earnings attributable to noncontrolling interest | 4 | 5 | 3 | ||||||||||||
Earnings before income taxes attributable to TRW | $ | 43 | $ | 34 | $ | 39 | |||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Inventories [Abstract] | |||||||||||
Major Classes of Inventory | 5. Inventories | ||||||||||
The major classes of inventory are as follows: | |||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
(Dollars in millions) | |||||||||||
Finished products and work in process | $ | 470 | $ | 499 | |||||||
Raw materials and supplies | 502 | 520 | |||||||||
Total inventories | $ | 972 | $ | 1,019 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Major Classes of Property, Plant and Equipment | 7. Property, Plant and Equipment | ||||||||||
The major classes of property, plant and equipment are as follows: | |||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
(Dollars in millions) | |||||||||||
Property, plant and equipment: | |||||||||||
Land and improvements | $ | 174 | $ | 213 | |||||||
Buildings | 752 | 831 | |||||||||
Machinery and equipment | 5,682 | 5,985 | |||||||||
Computers and capitalized software | 102 | 109 | |||||||||
6,710 | 7,138 | ||||||||||
Accumulated depreciation and amortization: | |||||||||||
Land and improvements | -27 | -33 | |||||||||
Buildings | -377 | -416 | |||||||||
Machinery and equipment | -3,583 | -3,879 | |||||||||
Computers and capitalized software | -78 | -92 | |||||||||
-4,065 | -4,420 | ||||||||||
Total property, plant and equipment - net | $ | 2,645 | $ | 2,718 | |||||||
Depreciation expense was $440 million, $416 million, and $397 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ||||||||||||||||||||||||||
Changes in Goodwill [Table Text Block] | The changes in goodwill are as follows: | |||||||||||||||||||||||||
Occupant | ||||||||||||||||||||||||||
Chassis | Safety | Automotive | ||||||||||||||||||||||||
Systems | Systems | Electronics | Components | |||||||||||||||||||||||
Segment | Segment | Segment | Segment | Total | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 796 | $ | 537 | $ | 423 | $ | - | $ | 1,756 | ||||||||||||||||
Allocation of goodwill due to change in segment reporting | 275 | - | -275 | - | - | |||||||||||||||||||||
Effects of foreign currency translation | - | 4 | - | - | 4 | |||||||||||||||||||||
Balance as of December 31, 2013 | 1,071 | 541 | 148 | - | 1,760 | |||||||||||||||||||||
Effects of foreign currency translation | -1 | -10 | - | - | -11 | |||||||||||||||||||||
Balance as of December 31, 2014 | $ | 1,070 | $ | 531 | $ | 148 | $ | - | $ | 1,749 | ||||||||||||||||
Intangible Assets and Related Accumulated Amortization | The following table reflects intangible assets and related accumulated amortization: | |||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | 67 | $ | -67 | $ | - | $ | 67 | $ | -67 | $ | - | ||||||||||||||
Developed technology and other intangible assets | 120 | -93 | 27 | 119 | -91 | 28 | ||||||||||||||||||||
Total | 187 | $ | -160 | 27 | 186 | $ | -158 | 28 | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | 264 | 264 | 264 | 264 | ||||||||||||||||||||||
Total | $ | 451 | $ | 291 | $ | 450 | $ | 292 | ||||||||||||||||||
Weighted Average Amortization Periods for Intangible Assets Subject to Amortization | Customer relationships and developed technology have been fully amortized. The weighted average amortization periods for other intangible assets subject to amortization are as follows: | |||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||||
Amortization Period | ||||||||||||||||||||||||||
Other intangible assets | 9 years | |||||||||||||||||||||||||
Expected Amortization Expense | The Company expects that ongoing amortization expense for other intangibles will approximate the following: | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Fiscal year 2015 | $ | 3 | ||||||||||||||||||||||||
Fiscal year 2016 | 1 | |||||||||||||||||||||||||
2017 and beyond | 23 | |||||||||||||||||||||||||
The expected amortization expense for 2017 and beyond primarily relates to land use rights |
Other_Income_Expense_Net_Table
Other (Income) Expense - Net (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Other Expense (Income) - Net [Abstract] | |||||||||||||||
Details of Other (Income) Expense, Net | 9. Other Expense (Income) - Net | ||||||||||||||
The following table provides details of other expense (income) - net: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | |||||||||||||||
Net provision for bad debts | $ | 4 | $ | 4 | $ | -1 | |||||||||
Net gains on sales of assets and divestitures | - | - | -6 | ||||||||||||
Foreign currency exchange losses | 8 | 17 | 2 | ||||||||||||
Royalty and grant income | -22 | -19 | -18 | ||||||||||||
Miscellaneous other expense (income) | 12 | -3 | -14 | ||||||||||||
Other expense (income) - net | $ | 2 | $ | -1 | $ | -37 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Income Tax Expense | 10. Income Taxes | |||||||||||||||
Income tax expense (benefit) for each of the periods presented is as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(Dollars in millions) | ||||||||||||||||
The components of earnings before income taxes are as follows: | ||||||||||||||||
U.S. | $ | 195 | $ | 331 | $ | 464 | ||||||||||
Non-U.S. | 235 | 790 | 544 | |||||||||||||
$ | 430 | $ | 1,121 | $ | 1,008 | |||||||||||
Significant components of the provision for income taxes are as follows: | ||||||||||||||||
Current | ||||||||||||||||
Non-U.S. | $ | 190 | $ | 161 | $ | 169 | ||||||||||
U.S. State and Local | - | - | 2 | |||||||||||||
Total current | 190 | 161 | 171 | |||||||||||||
Deferred | ||||||||||||||||
U.S. Federal | 30 | -39 | -98 | |||||||||||||
Non-U.S. | -127 | -1 | -97 | |||||||||||||
U.S. State and Local | 3 | -7 | -9 | |||||||||||||
Total deferred | -94 | -47 | -204 | |||||||||||||
Income tax expense (benefit) | $ | 96 | $ | 114 | $ | -33 | ||||||||||
The reconciliation of income taxes calculated at the U.S. federal statutory income tax rate of 35% to income tax expense (benefit) is: | ||||||||||||||||
Income taxes at U.S. statutory rate | $ | 150 | $ | 392 | $ | 353 | ||||||||||
U.S. state and local income taxes net of U.S. federal tax benefit | 3 | -6 | -7 | |||||||||||||
Difference in income tax on foreign earnings, losses and remittances | 5 | -23 | -197 | |||||||||||||
Tax holidays and incentives | -28 | -32 | -38 | |||||||||||||
Valuation allowance | 7 | 17 | -63 | |||||||||||||
Foreign and other tax credits | -47 | -196 | -82 | |||||||||||||
Impact of tax legislation | -3 | -43 | -9 | |||||||||||||
Nondeductible expenses | 9 | 8 | 12 | |||||||||||||
Other | - | -3 | -2 | |||||||||||||
$ | 96 | $ | 114 | $ | -33 | |||||||||||
Deferred Tax Assets and Liabilities | As of December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||
Deferred tax assets: | ||||||||||||||||
Pensions and postretirement benefits other than pensions | $ | 274 | $ | 218 | ||||||||||||
Inventory | 40 | 41 | ||||||||||||||
Reserves and accruals | 315 | 327 | ||||||||||||||
Net operating loss and credit carryforwards | 617 | 682 | ||||||||||||||
Fixed assets and intangibles | 65 | 58 | ||||||||||||||
Other | 73 | 69 | ||||||||||||||
Total deferred tax assets | 1,384 | 1,395 | ||||||||||||||
Valuation allowance for deferred tax assets | -274 | -295 | ||||||||||||||
Net deferred tax assets | 1,110 | 1,100 | ||||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Pensions and postretirement benefits other than pensions | -100 | -200 | ||||||||||||||
Fixed assets and intangibles | -282 | -266 | ||||||||||||||
Undistributed earnings of foreign subsidiaries | -104 | -116 | ||||||||||||||
Deferred gain | -56 | -59 | ||||||||||||||
Other | -63 | -81 | ||||||||||||||
Total deferred tax liabilities | -605 | -722 | ||||||||||||||
Net deferred taxes | $ | 505 | $ | 378 | ||||||||||||
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | 2014 | 2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Balance, January 1, | $ | 176 | $ | 160 | $ | 148 | ||||||||||
Additions based on tax positions related to the current year | 16 | 14 | 12 | |||||||||||||
Additions for tax positions of prior years | 8 | 32 | 40 | |||||||||||||
Reductions for tax positions of prior years | -7 | -28 | -23 | |||||||||||||
Reductions for settlements | -7 | -1 | -17 | |||||||||||||
Reductions due to lapse in statute of limitations | -8 | -3 | -3 | |||||||||||||
Change attributable to foreign currency translation | -10 | 2 | 3 | |||||||||||||
Balance, December 31, | $ | 168 | $ | 176 | $ | 160 |
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Pension Plans Defined Benefit [Member] | |||||||||||||||||||||||||||||
Reconciliation of Changes in Plans' Benefit Obligation, Fair Value of Assets and Funded Status | 2014 | 2013 | |||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Total accumulated benefit obligation at December 31, | $ | 349 | $ | 1,460 | $ | 754 | $ | 767 | $ | 4,730 | $ | 865 | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligations at beginning of period | $ | 769 | $ | 4,729 | $ | 930 | $ | 1,073 | $ | 4,730 | $ | 955 | |||||||||||||||||
Service cost | 2 | - | 21 | 2 | - | 23 | |||||||||||||||||||||||
Interest cost | 37 | 206 | 34 | 42 | 189 | 36 | |||||||||||||||||||||||
Plan amendments | - | 7 | 2 | - | - | 1 | |||||||||||||||||||||||
Actuarial (gain) loss | 105 | 1,384 | 237 | -133 | -7 | -34 | |||||||||||||||||||||||
Foreign currency exchange rate changes | - | -321 | -113 | - | 95 | - | |||||||||||||||||||||||
Settlement/Curtailment (gain) loss | -520 | -4,283 | -224 | -153 | - | - | |||||||||||||||||||||||
Benefits paid | -43 | -262 | -46 | -62 | -278 | -51 | |||||||||||||||||||||||
Benefit obligations at December 31, | 350 | 1,460 | 841 | 769 | 4,729 | 930 | |||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | 695 | 5,763 | 328 | 804 | 5,552 | 303 | |||||||||||||||||||||||
Actual return on plan assets, less plan expense | 82 | 1,022 | 31 | 46 | 320 | 48 | |||||||||||||||||||||||
Foreign currency exchange rate changes | - | -361 | -26 | - | 122 | -23 | |||||||||||||||||||||||
Company contributions | 41 | 219 | 61 | 60 | 47 | 51 | |||||||||||||||||||||||
Settlements | -520 | -4,283 | -223 | -153 | - | - | |||||||||||||||||||||||
Benefits paid | -43 | -262 | -46 | -62 | -278 | -51 | |||||||||||||||||||||||
Fair value of plan assets at December 31, | 255 | 2,098 | 125 | 695 | 5,763 | 328 | |||||||||||||||||||||||
Funded status at December 31, | $ | -95 | $ | 638 | $ | -716 | $ | -74 | $ | 1,034 | $ | -602 | |||||||||||||||||
Amounts Recognized in Consolidated Balance Sheets | The following table provides the amounts recognized in the consolidated balance sheets: | ||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Non-current assets | $ | 2 | $ | 638 | $ | 23 | $ | 2 | $ | 1,034 | $ | 23 | |||||||||||||||||
Current liabilities | - | - | -22 | - | - | -25 | |||||||||||||||||||||||
Liabilities held-for-sale | - | - | -40 | - | - | - | |||||||||||||||||||||||
Long-term liabilities | -97 | - | -677 | -76 | - | -600 | |||||||||||||||||||||||
Net amount recognized | $ | -95 | $ | 638 | $ | -716 | $ | -74 | $ | 1,034 | $ | -602 | |||||||||||||||||
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Earnings (Losses) | The pre-tax amounts recognized in accumulated other comprehensive earnings (losses) consist of: | ||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service benefit (cost) | $ | - | $ | - | $ | -4 | $ | - | $ | - | $ | -3 | |||||||||||||||||
Net gain (loss) | -80 | -210 | -300 | -132 | -144 | -197 | |||||||||||||||||||||||
Accumulated other comprehensive earnings (loss) | $ | -80 | $ | -210 | $ | -304 | $ | -132 | $ | -144 | $ | -200 | |||||||||||||||||
Pension Plans With Accumulated Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows: | ||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Projected benefit obligation | $ | 341 | $ | 752 | $ | 748 | $ | 636 | |||||||||||||||||||||
Accumulated benefit obligation | 339 | 665 | 746 | 572 | |||||||||||||||||||||||||
Fair value of assets | 244 | 13 | 672 | 11 | |||||||||||||||||||||||||
Components of Net Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive (Earnings) Loss | The following table provides the components of net pension cost (income) and other amounts recognized in other comprehensive (earnings) loss for the Company's defined benefit pension plans and defined contribution plans: | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | U.S. | U.K. | World | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Net pension cost (income) | |||||||||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||||||||
Service cost | $ | 2 | $ | - | $ | 21 | $ | 2 | $ | - | $ | 23 | $ | 4 | $ | - | $ | 19 | |||||||||||
Interest cost | 37 | 206 | 34 | 42 | 189 | 36 | 59 | 215 | 38 | ||||||||||||||||||||
Expected return on plan assets | -49 | -341 | -16 | -59 | -315 | -20 | -80 | -328 | -20 | ||||||||||||||||||||
Settlement/Curtailment (gain) loss | 117 | 600 | 72 | 35 | - | - | 92 | - | 2 | ||||||||||||||||||||
Amortization of prior service (benefit) cost | - | - | 1 | - | - | 1 | 2 | - | - | ||||||||||||||||||||
Amortization of net (gain) loss | 8 | - | 11 | 27 | - | 18 | 19 | - | 9 | ||||||||||||||||||||
Defined benefit plans | 115 | 465 | 123 | 47 | -126 | 58 | 96 | -113 | 48 | ||||||||||||||||||||
Defined contribution plans cost | 23 | 4 | 24 | 22 | 3 | 16 | 22 | 3 | 16 | ||||||||||||||||||||
Net pension cost (income) | 138 | 469 | 147 | 69 | -123 | 74 | 118 | -110 | 64 | ||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||||||||||||||||||||||||||||
Prior service (benefit) cost | - | 7 | 2 | - | - | -1 | - | - | 1 | ||||||||||||||||||||
Net (gain) loss | 72 | 703 | 223 | -120 | -12 | -61 | 33 | 295 | 125 | ||||||||||||||||||||
Effect of exchange rates on amounts included in AOCI | - | -45 | -36 | - | 3 | -4 | - | -2 | 7 | ||||||||||||||||||||
Amortization or curtailment recognition of prior service benefit (cost) | - | -7 | -1 | - | - | 1 | -2 | - | -1 | ||||||||||||||||||||
Amortization or settlement recognition of net gain (loss) | -125 | -592 | -84 | -62 | - | -19 | -110 | - | -11 | ||||||||||||||||||||
Total recognized in other comprehensive (earnings) loss | -53 | 66 | 104 | -182 | -9 | -84 | -79 | 293 | 121 | ||||||||||||||||||||
Total recognized net pension (income) cost and other comprehensive (earnings) loss | $ | 85 | $ | 535 | $ | 251 | $ | -113 | $ | -132 | $ | -10 | $ | 39 | $ | 183 | $ | 185 | |||||||||||
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Earnings Over Next Fiscal Year | The estimated amounts that will be amortized from accumulated other comprehensive earnings over the next fiscal year are as follows: | ||||||||||||||||||||||||||||
Year Ending | |||||||||||||||||||||||||||||
31-Dec-15 | |||||||||||||||||||||||||||||
Rest of | |||||||||||||||||||||||||||||
U.S. | World | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service (benefit) cost | $ | - | $ | 1 | |||||||||||||||||||||||||
Net (gain) loss | 7 | 29 | |||||||||||||||||||||||||||
Total | $ | 7 | $ | 30 | |||||||||||||||||||||||||
Fair Value of Company's United States and United Kingdom Pension Plan Assets, by Asset Category | As of December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 943 | $ | - | $ | - | $ | 656 | $ | - | $ | - | |||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||||||||
Corporate bonds | - | 109 | - | - | 1,864 | - | |||||||||||||||||||||||
U.K. government guaranteed bonds | 359 | - | - | 1,724 | - | - | |||||||||||||||||||||||
Collateral assets for structured equity holdings | 86 | - | - | 80 | - | - | |||||||||||||||||||||||
Asset backed securities | - | 665 | - | - | 1,081 | - | |||||||||||||||||||||||
Equities: | |||||||||||||||||||||||||||||
Common stock | 2 | - | - | 4 | - | - | |||||||||||||||||||||||
Structured equity holdings | - | 114 | - | - | 916 | - | |||||||||||||||||||||||
Real estate | - | 99 | - | - | 148 | - | |||||||||||||||||||||||
Other | - | -24 | - | - | -15 | - | |||||||||||||||||||||||
Total assets at fair value | $ | 1,390 | $ | 963 | $ | - | $ | 2,464 | $ | 3,994 | $ | - | |||||||||||||||||
Expected Future Benefit Payments | U.S. | U.K. | Rest of World | ||||||||||||||||||||||||||
Years Ending December 31, | (Dollars in millions) | ||||||||||||||||||||||||||||
2015 | $ | 7 | $ | 29 | $ | 24 | |||||||||||||||||||||||
2016 | 36 | 24 | 26 | ||||||||||||||||||||||||||
2017 | 10 | 26 | 28 | ||||||||||||||||||||||||||
2018 | 11 | 28 | 30 | ||||||||||||||||||||||||||
2019 | 12 | 32 | 31 | ||||||||||||||||||||||||||
2020 - 2024 | 76 | 225 | 183 | ||||||||||||||||||||||||||
Pension Plans Defined Benefit [Member] | Benefit Costs [Member] | |||||||||||||||||||||||||||||
Weighted-Average Assumptions Used | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | U.S. | U.K. | World | |||||||||||||||||||||
Discount rate | 5 | % | 4.5 | % | 4.18 | % | 4 | % | 4.25 | % | 3.9 | % | 4.75 | % | 4.75 | % | 4.82 | % | |||||||||||
Expected long-term return on plan assets | 7.5 | % | 6.25 | % | 6.31 | % | 7.75 | % | 6.25 | % | 6.53 | % | 7.75 | % | 6.25 | % | 6.5 | % | |||||||||||
Rate of increase in compensation levels | 3.5 | % | N/A | 2.9 | % | 5 | % | N/A | 2.9 | % | 4.76 | % | N/A | 2.92 | % | ||||||||||||||
To develop the expected long-term rate of return on asset assumptions, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. The U.K. pension plan and certain of the U.S. pension plans are closed to future benefits, therefore the rate of increase in compensation was not applicable in determining the net period benefit cost for 2014, 2013 and 2012, nor in determining the benefit obligation as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Pension Plans Defined Benefit [Member] | Benefit Obligations [Member] | |||||||||||||||||||||||||||||
Weighted-Average Assumptions Used | The weighted-average assumptions used to calculate the benefit obligations were: | ||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | U.K. | World | U.S. | U.K. | World | ||||||||||||||||||||||||
Discount rate | 4.25 | % | 3.75 | % | 2.41 | % | 5 | % | 4.5 | % | 4.18 | % | |||||||||||||||||
Rate of increase in compensation levels | 5 | % | N/A | 2.89 | % | 3.5 | % | N/A | 2.9 | % | |||||||||||||||||||
Other Postretirement Benefit Plans Defined Benefit [Member] | |||||||||||||||||||||||||||||
Amounts Recognized in Consolidated Balance Sheets | The following table provides the amounts recognized in the consolidated balance sheets: | ||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Current liabilities | $ | -26 | $ | -6 | $ | -30 | $ | -6 | |||||||||||||||||||||
Long-term liabilities | -262 | -84 | -293 | -82 | |||||||||||||||||||||||||
Total amount recognized | $ | -288 | $ | -90 | $ | -323 | $ | -88 | |||||||||||||||||||||
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Earnings (Losses) | The pre-tax amounts recognized in accumulated other comprehensive earnings (losses) consist of: | ||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service benefit (cost) | $ | 50 | $ | 10 | $ | 58 | $ | 17 | |||||||||||||||||||||
Net gain (loss) | 19 | -7 | -2 | 2 | |||||||||||||||||||||||||
Accumulated other comprehensive earnings (loss) | $ | 69 | $ | 3 | $ | 56 | $ | 19 | |||||||||||||||||||||
Components of Net Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive (Earnings) Loss | The following table provides the components of net postretirement benefit (income) cost and other amounts recognized in other comprehensive (earnings) loss for the plans. | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | World | U.S. | World | U.S. | World | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Net postretirement benefit (income) cost: | |||||||||||||||||||||||||||||
Service cost | $ | - | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||||||||||||
Interest cost | 15 | 4 | 14 | 4 | 16 | 5 | |||||||||||||||||||||||
Curtailment/Settlement (gain) loss | - | - | -29 | - | -36 | - | |||||||||||||||||||||||
Amortization of prior service (benefit) cost | -8 | -5 | -13 | -5 | -22 | -7 | |||||||||||||||||||||||
Amortization of net (gain) loss | -2 | - | 1 | 1 | - | 1 | |||||||||||||||||||||||
Net postretirement benefit (income) cost | 5 | - | -26 | 1 | -41 | - | |||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss: | |||||||||||||||||||||||||||||
Prior service (benefit) cost | - | - | 57 | 3 | - | 3 | |||||||||||||||||||||||
Net (gain) loss | -23 | 10 | -40 | -9 | -6 | -8 | |||||||||||||||||||||||
Amortization or curtailment recognition of prior service benefit (cost) | 8 | 5 | 31 | 5 | 51 | 6 | |||||||||||||||||||||||
Amortization or settlement recognition of net gain (loss) | 2 | 1 | 9 | - | 6 | -1 | |||||||||||||||||||||||
Total recognized in other comprehensive (earnings) loss | -13 | 16 | 57 | -1 | 51 | - | |||||||||||||||||||||||
Total recognized net postretirement benefit (income) cost and other comprehensive (earnings) loss | $ | -8 | $ | 16 | $ | 31 | $ | - | $ | 10 | $ | - | |||||||||||||||||
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Earnings Over Next Fiscal Year | The estimated amounts that will be amortized from accumulated other comprehensive earnings over the next fiscal year are as follows: | ||||||||||||||||||||||||||||
Year Ending | |||||||||||||||||||||||||||||
31-Dec-15 | |||||||||||||||||||||||||||||
Rest of | |||||||||||||||||||||||||||||
U.S. | World | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Prior service (benefit) cost | $ | -7 | $ | -5 | |||||||||||||||||||||||||
Net actuarial (gain) loss | -4 | - | |||||||||||||||||||||||||||
Total | $ | -11 | $ | -5 | |||||||||||||||||||||||||
Expected Future Benefit Payments | |||||||||||||||||||||||||||||
U.S. | Rest of World | ||||||||||||||||||||||||||||
Years Ending December 31, | (Dollars in millions) | ||||||||||||||||||||||||||||
2015 | $ | 27 | $ | 5 | |||||||||||||||||||||||||
2016 | 26 | 5 | |||||||||||||||||||||||||||
2017 | 25 | 5 | |||||||||||||||||||||||||||
2018 | 24 | 5 | |||||||||||||||||||||||||||
2019 | 23 | 5 | |||||||||||||||||||||||||||
2020 -2024 | 96 | 28 | |||||||||||||||||||||||||||
Reconciliation of Changes in Plans' Benefit Obligation, Fair Value of Assets and Funded Status | 2014 | 2013 | |||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligations at beginning of period | $ | 323 | $ | 88 | $ | 330 | $ | 103 | |||||||||||||||||||||
Service cost | - | 1 | 1 | 1 | |||||||||||||||||||||||||
Interest cost | 15 | 4 | 14 | 4 | |||||||||||||||||||||||||
Actuarial (gain) loss | -23 | 10 | -40 | -10 | |||||||||||||||||||||||||
Foreign currency exchange rate changes | - | -7 | - | -6 | |||||||||||||||||||||||||
Plan amendments | - | - | 57 | 3 | |||||||||||||||||||||||||
Plan participant contributions | 1 | - | 1 | - | |||||||||||||||||||||||||
Benefits paid | -28 | -6 | -40 | -7 | |||||||||||||||||||||||||
Benefit obligations at December 31, | 288 | 90 | 323 | 88 | |||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | - | - | - | - | |||||||||||||||||||||||||
Company contributions | 27 | 6 | 39 | 7 | |||||||||||||||||||||||||
Plan participant contributions | 1 | - | 1 | - | |||||||||||||||||||||||||
Benefits paid | -28 | -6 | -40 | -7 | |||||||||||||||||||||||||
Fair value of plan assets at December 31, | - | - | - | - | |||||||||||||||||||||||||
Funded status at December 31, | $ | -288 | $ | -90 | $ | -323 | $ | -88 | |||||||||||||||||||||
One-Percentage-Point Change in Assumed Health Care Cost Trend Rate | A one-percentage-point change in the assumed health care cost trend rate would have had the following effects: | ||||||||||||||||||||||||||||
One-Percentage-Point | |||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Effect on total of service and interest cost components for the year ended December 31, 2014 | $ | 1 | $ | - | $ | -1 | $ | - | |||||||||||||||||||||
Effect on postretirement benefit obligation as of measurement date | $ | 21 | $ | 7 | $ | -18 | $ | -7 | |||||||||||||||||||||
Other Postretirement Benefit Plans Defined Benefit [Member] | Benefit Costs [Member] | |||||||||||||||||||||||||||||
Weighted-Average Assumptions Used | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Rest of | Rest of | Rest of | |||||||||||||||||||||||||||
U.S. | World | U.S. | World | U.S. | World | ||||||||||||||||||||||||
Discount rate | 5 | % | 4.75 | % | 4 | % | 4 | % | 4.75 | % | 4.5 | % | |||||||||||||||||
Other Postretirement Benefit Plans Defined Benefit [Member] | Benefit Obligations [Member] | |||||||||||||||||||||||||||||
Weighted-Average Assumptions Used | The discount rate and assumed health care cost trend rates used in the measurement of the benefit obligation as of the applicable measurement dates were: | ||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Rest of | Rest of | ||||||||||||||||||||||||||||
U.S. | World | U.S. | World | ||||||||||||||||||||||||||
Discount rate | 4 | % | 3.75 | % | 5 | % | 4.75 | % | |||||||||||||||||||||
Initial health care cost trend rate at end of year | 7 | % | 4.5 | % | 6.9 | % | 4 | % | |||||||||||||||||||||
Ultimate health care cost trend rate | 4.5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||
Year in which ultimate rate is reached | 2022 | 2017 | 2018 | 2017 |
Fair_Value_Measurements_and_Fi1
Fair Value Measurements and Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||
Fair Value Measurements Recurring Basis [Table Text Block] | As of December 31, | |||||||||||||||||||||||||
2014 | 2013 | Measurement Approach | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Foreign currency exchange contracts — current assets | $ | 7 | $ | 6 | Level 2 | |||||||||||||||||||||
Foreign currency exchange contracts — noncurrent assets | 2 | - | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — current liability | 13 | 5 | Level 2 | |||||||||||||||||||||||
Foreign currency exchange contracts — noncurrent liability | 13 | 9 | Level 2 | |||||||||||||||||||||||
Financial Instruments Not Carried at Fair Value [Table Text Block] | As of December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Measurement | ||||||||||||||||||||||
Value | Value | Value | Value | Approach | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Short-term debt, fixed and floating rate | $ | 222 | $ | 222 | $ | 159 | $ | 159 | Level 2 | |||||||||||||||||
Fixed rate long-term debt | $ | 1,326 | $ | 1,389 | $ | 1,821 | $ | 1,884 | Level 2 | |||||||||||||||||
Fixed rate exchangeable notes | $ | 30 | $ | 109 | $ | 134 | $ | 375 | Level 2 | |||||||||||||||||
Offsetting Assets And Liabilites [Table Text Block] | Offsetting of Derivative Assets and Liabilities | |||||||||||||||||||||||||
The following table reflects the fair value of derivative assets and liabilities; the amounts consist of interest rate contracts and foreign currency exchange contracts, none of which are individually significant: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2014 | 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 | $ | 45 | $ | -36 | $ | 9 | $ | 42 | $ | -36 | $ | 6 | ||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||
Foreign Currency | 62 | -36 | 26 | 50 | -36 | 14 |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Total Outstanding Debt | 13. Debt | |||||||||||
Total outstanding debt of the Company consisted of the following: | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Dollars in millions) | ||||||||||||
Short-term debt | $ | 222 | $ | 159 | ||||||||
Long-term debt: | ||||||||||||
6.375% Senior Notes, due 2014 | $ | - | $ | 234 | ||||||||
7.00% Senior Notes, due 2014 | - | 233 | ||||||||||
7.25% Senior Notes, due 2017 | 444 | 446 | ||||||||||
4.50% Senior Notes, due 2021 | 400 | 400 | ||||||||||
4.45% Senior Notes, due 2023 | 400 | 400 | ||||||||||
Exchangeable senior notes, due 2015 | 30 | 134 | ||||||||||
Revolving credit facility | - | - | ||||||||||
Capitalized leases | 14 | 18 | ||||||||||
Other borrowings | 68 | 90 | ||||||||||
Total long-term debt | 1,356 | 1,955 | ||||||||||
Less current portion | 72 | 482 | ||||||||||
Long-term debt, net of current portion | $ | 1,284 | $ | 1,473 | ||||||||
Maturities of Long-Term Debt Outstanding | The weighted average interest rate on the Company's debt as of December 31, 2014 and 2013 was 5.4% and 5.9%, respectively. The maturities of long-term debt outstanding as of December 31, 2014 are: | |||||||||||
Years Ended December 31, | (Dollars in millions) | |||||||||||
2015 | $ | 72 | ||||||||||
2016 | 25 | |||||||||||
2017 | 448 | |||||||||||
2018 | 3 | |||||||||||
2019 | 3 | |||||||||||
Thereafter | 805 | |||||||||||
Total | $ | 1,356 |
Restructuring_Charges_and_Asse1
Restructuring Charges and Asset Impairments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Restructuring Charges and Asset Impairments [Abstract] | |||||||||||||||||||||||||||
Restructuring Charges and Asset Impairments | Occupant | ||||||||||||||||||||||||||
Chassis | Safety | Automotive | |||||||||||||||||||||||||
Systems | Systems | Electronics | Components | ||||||||||||||||||||||||
Segment | Segment | Segment | Segment | Corporate | Total | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
For the year ended December 31, 2014: | |||||||||||||||||||||||||||
Severance and other charges - net | $ | 55 | $ | 7 | $ | - | $ | 4 | $ | - | $ | 66 | |||||||||||||||
Curtailment gain - net | -1 | - | - | - | - | -1 | |||||||||||||||||||||
Asset impairments related to restructuring activities | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Total restructuring charges | 66 | 7 | - | 4 | - | 77 | |||||||||||||||||||||
Other asset impairments | 7 | - | - | - | - | 7 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 73 | $ | 7 | $ | - | $ | 4 | $ | - | $ | 84 | |||||||||||||||
For the year ended December 31, 2013: | |||||||||||||||||||||||||||
Severance and other charges | $ | 22 | $ | 36 | $ | - | $ | -3 | $ | 1 | $ | 56 | |||||||||||||||
Curtailment loss - net | 1 | - | - | - | - | 1 | |||||||||||||||||||||
Asset impairments related to restructuring activities | - | 1 | - | 1 | - | 2 | |||||||||||||||||||||
Total restructuring charges | 23 | 37 | - | -2 | 1 | 59 | |||||||||||||||||||||
Other asset impairments | 4 | - | 1 | 2 | - | 7 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 27 | $ | 37 | $ | 1 | $ | - | $ | 1 | $ | 66 | |||||||||||||||
For the year ended December 31, 2012: | |||||||||||||||||||||||||||
Severance and other charges | $ | 64 | $ | 20 | $ | - | $ | 7 | $ | - | $ | 91 | |||||||||||||||
Asset impairments related to restructuring activities | 2 | - | - | - | - | 2 | |||||||||||||||||||||
Total restructuring charges | 66 | 20 | - | 7 | - | 93 | |||||||||||||||||||||
Other asset impairments | 2 | - | - | - | - | 2 | |||||||||||||||||||||
Total restructuring charges and asset impairments | $ | 68 | $ | 20 | $ | - | $ | 7 | $ | - | $ | 95 | |||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Closure or planned closure of various facilities | $ | 54 | $ | 31 | $ | 35 | |||||||||||||||||||||
Workforce reduction initiatives | 23 | 28 | 58 | ||||||||||||||||||||||||
Total restructuring charges | $ | 77 | $ | 59 | $ | 93 | |||||||||||||||||||||
Asset impairments related to write-downs of: | |||||||||||||||||||||||||||
Machinery and equipment | $ | 7 | $ | 6 | $ | 2 | |||||||||||||||||||||
Buildings | - | 1 | - | ||||||||||||||||||||||||
Total asset impairments | $ | 7 | $ | 7 | $ | 2 | |||||||||||||||||||||
Movement of Restructuring Reserves for Severance and Other Charges Including Reserves Related to Severance-Related Postemployment Benefits | Restructuring Reserves | ||||||||||||||||||||||||||
The following table illustrates the movement of the restructuring reserves for severance and other charges, including reserves related to severance-related postemployment benefits for both periods presented: | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Beginning balance | $ | 88 | $ | 121 | |||||||||||||||||||||||
Current period accruals, net of changes in estimates | 66 | 56 | |||||||||||||||||||||||||
Liabilities held-for-sale | -2 | - | |||||||||||||||||||||||||
Used for purposes intended | -69 | -95 | |||||||||||||||||||||||||
Effects of foreign currency translation and transfers | -9 | 6 | |||||||||||||||||||||||||
Ending balance | $ | 74 | $ | 88 |
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |||||||||||
Future Minimum Lease Payments for Noncancelable Capital and Operating Leases | As of December 31, 2014, the future minimum lease payments for noncancelable capital and operating leases with initial terms in excess of one year were as follows: | ||||||||||
Capital | Operating | ||||||||||
Years Ended December 31, | Leases | Leases | |||||||||
(Dollars in millions) | |||||||||||
2015 | $ | 3 | $ | 60 | |||||||
2016 | 3 | 51 | |||||||||
2017 | 3 | 47 | |||||||||
2018 | 3 | 43 | |||||||||
2019 | 2 | 48 | |||||||||
Thereafter | 3 | 54 | |||||||||
Total minimum payments required | $ | 17 | $ | 303 | |||||||
Less amounts representing interest | 3 | ||||||||||
Present value of net minimum capital lease payments | 14 | ||||||||||
Less current installments | 2 | ||||||||||
Obligations under capital leases, excluding current installments | $ | 12 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Share-Based Compensation [Abstract] | ||||||||||||||||||
Significant Equity Award Grants | The significant equity award grants during 2014, 2013 and 2012 are as follows: | |||||||||||||||||
February 21, | February 22, | February 23, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
SSARs | RSUs | SSARs | RSUs | SSARs | RSUs | |||||||||||||
Number Granted | 850,900 | 284,723 | 1,199,551 | 428,169 | 1,282,518 | 515,523 | ||||||||||||
Grant date fair market value | $ | 82.5 | $ | 58.2 | $ | 45.11 | ||||||||||||
Maximum value | $ | 130 | $ | 110 | $ | 95 | ||||||||||||
The exercise price of the SSARs and stock options is equal to the fair market value under the applicable plan of the Company common stock on the grant date. For awards granted in 2014 and 2013, the fair market value is the closing stock price. For awards granted in 2012, the fair market value is calculated as the average of the high and low stock price. | ||||||||||||||||||
Share-based Compensation Expense Recognized for Plan | The total share-based compensation expense recognized for the Plan was as follows: | |||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SSARs and stock options | $ | 9 | $ | 10 | $ | 5 | ||||||||||||
RSUs | 24 | 26 | 16 | |||||||||||||||
Performance Units | 3 | - | - | |||||||||||||||
Total share-based compensation expense | $ | 36 | $ | 36 | $ | 21 | ||||||||||||
Fair Value SSARs and Stock Options Estimated Using the Black-Scholes Option Pricing | Fair value for SSARs was estimated at the date of grant using the Black-Scholes option pricing model using the following weighted-average assumptions: | |||||||||||||||||
February 21, | February 22, | February 23, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Expected volatility | 61.10% | 79.30% | 79.30% | |||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||||||||||||||
Expected life | 5.0 years | 5.0 years | 5.0 years | |||||||||||||||
Risk-free rate | 1.53% | 0.83% | 0.89% | |||||||||||||||
Summary of SSAR and Stock Option Activity Under Plan | A summary of SSAR and stock option activity under the Plan and changes for the year ended December 31, 2014 is presented below: | |||||||||||||||||
Weighted- | ||||||||||||||||||
Weighted- | Average | |||||||||||||||||
Thousands of | Average | Remaining | Aggregate | |||||||||||||||
Options | Exercise | Contractual | Intrinsic | |||||||||||||||
and SSARs | Price | Term | Value | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Outstanding as of January 1, 2014 | 3,572 | $ | 47.88 | |||||||||||||||
Granted | 851 | 82.5 | ||||||||||||||||
Exercised | -1,786 | 45.89 | ||||||||||||||||
Forfeited or expired | -102 | 52.09 | ||||||||||||||||
Outstanding as of December 31, 2014 | 2,535 | 60.73 | 6 | $ | 104 | |||||||||||||
Exercisable as of December 31, 2014 | 577 | $ | 42.01 | 4.5 | $ | 35 | ||||||||||||
Summary of Nonvested Restricted Stock Units | A summary of the status of the Company's nonvested RSUs as of December 31, 2014, and changes during the year ended December 31, 2014, is presented below: | |||||||||||||||||
Weighted- | ||||||||||||||||||
Thousands of | Average | |||||||||||||||||
Restricted | Grant-Date | |||||||||||||||||
Stock Units | Fair Value | |||||||||||||||||
Nonvested Units | ||||||||||||||||||
Nonvested as of January 1, 2014 | 805 | $ | 52.96 | |||||||||||||||
Granted | 299 | 82.44 | ||||||||||||||||
Vested | -384 | 52.36 | ||||||||||||||||
Forfeited | -44 | 59.66 | ||||||||||||||||
Nonvested as of December 31, 2014 | 676 | $ | 65.92 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||||||||
Certain Financial Information by Segment [Table Text Block] | The following tables present certain financial information by segment: | |||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Sales to external customers: | ||||||||||||||||||||||
Chassis Systems | $ | 11,354 | $ | 11,492 | $ | 10,685 | ||||||||||||||||
Occupant Safety Systems | 3,357 | 3,314 | 3,287 | |||||||||||||||||||
Electronics | 937 | 721 | 654 | |||||||||||||||||||
Automotive Components | 1,891 | 1,908 | 1,818 | |||||||||||||||||||
Total sales to external customers | $ | 17,539 | $ | 17,435 | $ | 16,444 | ||||||||||||||||
Intersegment sales: | ||||||||||||||||||||||
Chassis Systems | $ | 16 | $ | 14 | $ | 20 | ||||||||||||||||
Occupant Safety Systems | 139 | 130 | 90 | |||||||||||||||||||
Electronics | 609 | 543 | 514 | |||||||||||||||||||
Automotive Components | 74 | 75 | 80 | |||||||||||||||||||
Total intersegment sales | $ | 838 | $ | 762 | $ | 704 | ||||||||||||||||
Total segment sales: | ||||||||||||||||||||||
Chassis Systems | $ | 11,370 | $ | 11,506 | $ | 10,705 | ||||||||||||||||
Occupant Safety Systems | 3,496 | 3,444 | 3,377 | |||||||||||||||||||
Electronics | 1,546 | 1,264 | 1,168 | |||||||||||||||||||
Automotive Components | 1,965 | 1,983 | 1,898 | |||||||||||||||||||
Total segment sales | $ | 18,377 | $ | 18,197 | $ | 17,148 | ||||||||||||||||
Earnings before taxes: | ||||||||||||||||||||||
Chassis Systems | $ | 831 | $ | 841 | $ | 669 | ||||||||||||||||
Occupant Safety Systems | 282 | 239 | 254 | |||||||||||||||||||
Electronics | 144 | 126 | 132 | |||||||||||||||||||
Automotive Components | 168 | 150 | 115 | |||||||||||||||||||
Segment earnings before taxes | 1,425 | 1,356 | 1,170 | |||||||||||||||||||
Corporate expense and other | -920 | -120 | -78 | |||||||||||||||||||
Interest expense — net | -109 | -132 | -111 | |||||||||||||||||||
Loss on retirement of debt — net | -7 | -20 | -6 | |||||||||||||||||||
Net earnings attributable to noncontrolling interest, net of tax | 41 | 37 | 33 | |||||||||||||||||||
Earnings before income taxes | $ | 430 | $ | 1,121 | $ | 1,008 | ||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||
Chassis Systems | $ | 418 | $ | 461 | $ | 364 | ||||||||||||||||
Occupant Safety Systems | 118 | 112 | 104 | |||||||||||||||||||
Electronics | 70 | 80 | 61 | |||||||||||||||||||
Automotive Components | 76 | 77 | 86 | |||||||||||||||||||
Corporate | 12 | 5 | 8 | |||||||||||||||||||
$ | 694 | $ | 735 | $ | 623 | |||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||
Chassis Systems | $ | 250 | $ | 243 | $ | 228 | ||||||||||||||||
Occupant Safety Systems | 83 | 79 | 80 | |||||||||||||||||||
Electronics | 51 | 42 | 38 | |||||||||||||||||||
Automotive Components | 55 | 63 | 60 | |||||||||||||||||||
Corporate | 5 | 3 | 3 | |||||||||||||||||||
$ | 444 | $ | 430 | $ | 409 | |||||||||||||||||
The Company accounts for intersegment sales or transfers at current market prices. | ||||||||||||||||||||||
Certain Balance Sheet Information by Segment | The following table presents certain balance sheet information by segment: | |||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Segment assets: | ||||||||||||||||||||||
Chassis Systems | $ | 5,842 | $ | 5,632 | ||||||||||||||||||
Occupant Safety Systems | 2,024 | 2,162 | ||||||||||||||||||||
Electronics | 1,247 | 1,019 | ||||||||||||||||||||
Automotive Components | 803 | 852 | ||||||||||||||||||||
Segment assets | 9,916 | 9,665 | ||||||||||||||||||||
Corporate assets | 812 | 2,047 | ||||||||||||||||||||
Segment and corporate assets | 10,728 | 11,712 | ||||||||||||||||||||
Deferred tax assets | 566 | 540 | ||||||||||||||||||||
Total assets | $ | 11,294 | $ | 12,252 | ||||||||||||||||||
Corporate assets principally consist of cash and cash equivalents and pension assets. | ||||||||||||||||||||||
Certain Information Concerning Principal Geographic Areas | ||||||||||||||||||||||
United | Rest of | |||||||||||||||||||||
States | China | Germany | World | Total | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Sales to external customers: | ||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 4,496 | $ | 3,131 | $ | 2,097 | $ | 7,815 | $ | 17,539 | ||||||||||||
Year Ended December 31, 2013 | 4,992 | 2,758 | 2,199 | 7,486 | 17,435 | |||||||||||||||||
Year Ended December 31, 2012 | 4,713 | 2,201 | 2,330 | 7,200 | 16,444 | |||||||||||||||||
Property, plant and equipment - net: | ||||||||||||||||||||||
As of December 31, 2014 | $ | 567 | $ | 565 | $ | 394 | $ | 1,119 | $ | 2,645 | ||||||||||||
As of December 31, 2013 | 534 | 478 | 430 | 1,276 | 2,718 | |||||||||||||||||
As of December 31, 2012 | 563 | 357 | 403 | 1,062 | 2,385 | |||||||||||||||||
Sales to Company's Largest-End-Customers | ||||||||||||||||||||||
Fiat | ||||||||||||||||||||||
Ford | Chrysler | Aggregate | ||||||||||||||||||||
Volkswagen | Motor | Automobiles | General | Percent of | ||||||||||||||||||
AG | Company | N.V.(a) | Motors | Total Sales | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 4,525 | $ | 3,210 | $ | 2,368 | $ | 1,288 | 64.90% | |||||||||||||
Year Ended December 31, 2013 | 4,298 | 3,234 | 2,359 | 1,757 | 66.80% | |||||||||||||||||
Year Ended December 31, 2012 | 3,863 | 2,897 | 2,290 | 1,649 | 65.10% | |||||||||||||||||
(a) | Effective in 2014, Fiat Chrysler Automobiles N.V. includes FCA US LLC (formerly known as Chrysler Group LLC), which was shown on a standalone basis for the years ended 2013 and 2012. | |||||||||||||||||||||
Unconsolidated_Affiliates_Tabl
Unconsolidated Affiliates (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Unconsolidated Affiliates [Abstract] | ||||||||||||
Company's Beneficial Ownership in Affiliates Accounted for Under Equity Method | 21. Unconsolidated Affiliates | |||||||||||
As of December 31, 2014 and 2013, the Company's investment in affiliates was $231 million and $207 million, respectively. | ||||||||||||
The Company's beneficial ownership in affiliates accounted for under the equity method follows: | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
SM-Sistemas Modulares Ltda. (Brazil) | 50% | 50% | 50% | |||||||||
ABC Sistemas E Modulos Ltda. (Brazil) | 33% | 33% | 33% | |||||||||
CSG TRW Chassis Systems Co., Ltd. (China) | 50% | 50% | 50% | |||||||||
Shanghai TRW Automotive Safety Systems Company Ltd. (China) | 50% | 50% | 50% | |||||||||
Shin-Han (Beijing) Automobile Parts System Co., Ltd (China)(a) | 30% | 30% | 30% | |||||||||
Fuji Valve (Guangdong) Co., Ltd. (China)(a) | 25% | 25% | 25% | |||||||||
TH Braking Company S.A.S. (France) | 50% | 50% | 50% | |||||||||
Rane TRW Steering Systems Limited (India) | 50% | 50% | 50% | |||||||||
Brakes India Limited (India) | 49% | 49% | 49% | |||||||||
TRW Sun Steering Wheels Private Limited (India) | 49% | 49% | 49% | |||||||||
Evercast, S.A. de C.V. (Mexico) | 30% | - | - | |||||||||
Shin Han Valve Industrial Company, Ltd. (South Korea)(a) | 25% | 25% | 25% | |||||||||
Componentes Venezolanos de Direccion, S.A. (Venezuela)(a) | 40% | 40% | 40% | |||||||||
(a) | These affiliates are classified as held-for-sale (see Note 4). |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 28, 2014 | ||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) [Abstract] | ||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) [Table Text Block] | 22. Quarterly Financial Information (Unaudited) | |||||||||||||||||||||||||
For the 2014 Quarter Ended | For the 2013 Quarter Ended | |||||||||||||||||||||||||
28-Mar | 27-Jun | 26-Sep | 31-Dec | 29-Mar | 28-Jun | 27-Sep | 31-Dec | |||||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||||||||||||
Sales | $ | 4,442 | $ | 4,593 | $ | 4,156 | $ | 4,348 | $ | 4,213 | $ | 4,514 | $ | 4,212 | $ | 4,496 | ||||||||||
Gross profit | 500 | 567 | 475 | 524 | 427 | 531 | 450 | 522 | ||||||||||||||||||
Pension and postretirement benefit settlement and curtailment expenses | - | - | - | 790 | - | - | - | 31 | ||||||||||||||||||
Restructuring charges and asset impairments | 20 | 6 | 10 | 48 | 37 | 1 | 5 | 23 | ||||||||||||||||||
Loss on retirement of debt - net | - | - | - | 7 | - | 5 | - | 15 | ||||||||||||||||||
Earnings (loss) before income taxes | 287 | 367 | 278 | -502 | 235 | 357 | 268 | 261 | ||||||||||||||||||
Net earnings (loss) attributable to TRW | 199 | 265 | 189 | -360 | 162 | 248 | 197 | 363 | ||||||||||||||||||
Basic earnings (loss) per share | $ | 1.76 | $ | 2.39 | $ | 1.7 | $ | -3.22 | $ | 1.35 | $ | 2.09 | $ | 1.68 | $ | 3.15 | ||||||||||
Diluted earnings (loss) per share | $ | 1.68 | $ | 2.27 | $ | 1.61 | $ | -3.22 | $ | 1.29 | $ | 1.99 | $ | 1.6 | $ | 3 |
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Description Of Business [Abstract] | |
Sales to major OEM | 82.00% |
Merger_Detail
Merger (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Merger [Abstract] | |
Merger Consideration | $105.60 |
Basis_of_Presentation_and_Summ3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||
Affiliates not required to be consolidated, investments owned under equity method | 30.00% | ||
Securites excluded from diluted earnings per share calculation | 0.8 | 2.1 | 1 |
Research and development expenses | $230 | $193 | $164 |
Allowance for doubtful accounts | $26 | $29 | |
Tools Dies And Molds [Member] | |||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||
Property Plant And Equipment Useful Life | 5 years |
Basis_of_Presentation_and_Summ4
Basis of Presentation and Summary of Significant Accounting Policies - Net Earnings (Losses) Attributable to TRW and Weighted Average Shares Outstanding (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Disclosure [Line Items] | |||||||||||
Net earnings attributable to TRW | ($360) | $189 | $265 | $199 | $363 | $197 | $248 | $162 | $293 | $970 | $1,008 |
Net earnings attributable to TRW for purposes of calculating diluted earnings per share | 300 | 978 | 1,016 | ||||||||
Interest expense on exchangeable notes, net of tax | 3 | 4 | 4 | ||||||||
Amortization of discount on exchangeable notes, net of tax | $4 | $4 | $4 | ||||||||
Basic: | |||||||||||
Weighted average shares outstanding | 111.7 | 117.6 | 122.4 | ||||||||
Basic earnings per share | ($3.22) | $1.70 | $2.39 | $1.76 | $3.15 | $1.68 | $2.09 | $1.35 | $2.62 | $8.25 | $8.24 |
Diluted: | |||||||||||
Weighted average shares outstanding | 111.7 | 117.6 | 122.4 | ||||||||
Effect of dilutive stock options, RSUs and SSARs | 1.6 | 1.3 | 1.4 | ||||||||
Shares applicable to exchangeable notes | 4.7 | 5.7 | 5.9 | ||||||||
Diluted weighted average shares outstanding | 118 | 124.6 | 129.7 | ||||||||
Diluted earnings per share | ($3.22) | $1.61 | $2.27 | $1.68 | $3 | $1.60 | $1.99 | $1.29 | $2.54 | $7.85 | $7.83 |
Basis_of_Presentation_and_Summ5
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Building [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 30 years |
Building [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 40 years |
Machinery And Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Machinery And Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 10 years |
Computer Equipment And Capitalized Software [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 3 years |
Computer Equipment And Capitalized Software [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property Plant And Equipment Useful Life | 5 years |
Basis_of_Presentation_and_Summ6
Basis of Presentation and Summary of Significant Accounting Policies - Movement in Product Warranty Liability (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Basis of Presentation and Summary of Significant Acconting Policies [Abstract] | ||
Beginning balance | $152 | $140 |
Current period accruals, net of changes in estimates | 53 | 58 |
Liabilitites held-for-sale | -2 | 0 |
Used for purposes intended | -40 | -47 |
Effects of foreign currency translation | -9 | 1 |
Ending balance | $154 | $152 |
Basis_of_Presentation_and_Summ7
Basis of Presentation and Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Earnings (Losses) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basis of Presentation and Summary of Significant Acconting Policies [Abstract] | |||
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Cash Flow Hedges Effect Net Of Tax | ($13) | ($16) | $10 |
Accumulated Other Comprehensive Income Loss Defined Benefit Pension And Other Postretirement Plans Net Of Tax | -501 | -405 | -559 |
Accumulated Other Comprehensive Income Loss Foreign Currency Translation Adjustment Net Of Tax | -225 | 41 | 83 |
Total accumulated other comprehensive earnings (losses) | -739 | -380 | -466 |
OCI before reclassifications, cash flow hedges | -1 | -25 | |
OCI before reclassifications, retirement obligations | -96 | 134 | |
OCI before reclassifications, foreign currency translation | -266 | -42 | |
OCI before reclassifications, total | -363 | 67 | |
Amounts reclassified from AOCI, cash flow hedges | 4 | -1 | |
Amounts reclassified from AOCI, retirement obligations | 0 | 20 | |
Amounts reclassified from AOCI, total | 4 | 19 | |
Current period OCI, cash flow hedges | 3 | -26 | |
Current period OCI, Retirement obligations | -96 | 154 | |
Current Period OCI, foreign currency translation | -266 | -42 | |
Current period OCI, total | -359 | 86 | |
Actuarial gains or losses reclassified from AOCI | 12 | 46 | |
Prior service costs reclassified from AOCI | 12 | 17 | |
Tax amount of retirement obligations reclassified from AOCI | $0 | $9 |
Assets_Held_for_Sale_Detail
Assets Held for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets Held for Sale [Abstract] | ||
Cash, held-for-sale | $10 | |
Accounts receivable - net, held-for sale | 23 | |
Inventories, held-for sale | 44 | |
Prepaid expenses and other current assets, held-for sale | 6 | |
Property, plant and equipment - net, held-for sale | 158 | |
Other assets, held-for-sale | 11 | |
Total assets held-for-sale | 252 | 0 |
Trade accounts payable, held-for-sale | 24 | |
Accrued compensation, held-for sale | 15 | |
Other current liabilities, held-for-sale | 24 | |
Pension and defined contribution benefits held-for-sale | 41 | |
Total liabilities related to assets held-for-sale | 104 | 0 |
Purchase Price of Engine Valve Divestiture | $385 |
Assets_Held_for_Sale_Earnings_
Assets Held for Sale- Earnings Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Earnings before Income Taxes, Engine Valve [Line Items] | |||||||||||
Earnings (losses) before income taxes | ($502) | $278 | $367 | $287 | $261 | $268 | $357 | $235 | $430 | $1,121 | $1,008 |
Less: Net earnings attributable to noncontrolling interest, net of tax | 41 | 37 | 33 | ||||||||
Engine Valve [Member] | |||||||||||
Schedule of Earnings before Income Taxes, Engine Valve [Line Items] | |||||||||||
Earnings (losses) before income taxes | 47 | 39 | 42 | ||||||||
Less: Net earnings attributable to noncontrolling interest, net of tax | 4 | 5 | 3 | ||||||||
Earnings before income taxes attributable to TRW | $43 | $34 | $39 |
Inventories_Major_Classes_of_I
Inventories - Major Classes of Inventory (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ||
Finished products and work in process | $470 | $499 |
Raw materials and supplies | 502 | 520 |
Total inventories | $972 | $1,019 |
Investment_in_Joint_Venture_Af1
Investment in Joint Venture Affiliates (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Investment in Joint Venture Affiliates [Abstract] | |
Investment in non-consolidated joint venture assets | $17 |
Equity Method Investment Ownership Percentage | 30.00% |
Joint venture affiliate construction in process | 46 |
Joint venture affiliates long-term liabilities | $32 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $440 | $416 | $397 |
Property_Plant_and_Equipment_M
Property, Plant and Equipment - Major Classes of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | $6,710 | $7,138 | |
Accumulated depreciation and amortization | -4,065 | -4,420 | |
Total property, plant and equipment - net | 2,645 | 2,718 | 2,385 |
Land And Land Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 174 | 213 | |
Accumulated depreciation and amortization | -27 | -33 | |
Building [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 752 | 831 | |
Accumulated depreciation and amortization | -377 | -416 | |
Machinery And Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 5,682 | 5,985 | |
Accumulated depreciation and amortization | -3,583 | -3,879 | |
Computer Equipment And Capitalized Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | 102 | 109 | |
Accumulated depreciation and amortization | ($78) | ($92) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Beginning Balance | $1,760 | $1,756 |
Allocation of goodwill due to change in segment reporting | 0 | |
Effects of foreign currency translation | -11 | 4 |
Ending Balance | 1,749 | 1,760 |
Chassis Systems [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 1,071 | 796 |
Allocation of goodwill due to change in segment reporting | 275 | |
Effects of foreign currency translation | -1 | 0 |
Ending Balance | 1,070 | 1,071 |
Occupant Safety Systems [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 541 | 537 |
Effects of foreign currency translation | -10 | 4 |
Ending Balance | 531 | 541 |
Electronics [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 148 | 423 |
Allocation of goodwill due to change in segment reporting | -275 | |
Effects of foreign currency translation | 0 | 0 |
Ending Balance | $148 | $148 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets [Abstract] | |||
Amortization Of Intangible Assets | ($4) | ($14) | ($12) |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Intangible Assets and Related Accumulated Amortization (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Intangible Assets By Major Class [Line Items] | ||
Intangible Assets Gross Excluding Goodwill | $451 | $450 |
Intangible Assets Net Excluding Goodwill | 291 | 292 |
Definite-lived intangible assets: | ||
Definite-lived intangibles Gross Carrying amount | 187 | 186 |
Definite-lived intangibles Accumulated Amortization | -160 | -158 |
Definite-lived intangibles Net Carrying Amount | 27 | 28 |
Indefinite-lived intangible: | ||
Trademarks | 264 | 264 |
Customer Relationships [Member] | ||
Definite-lived intangible assets: | ||
Definite-lived intangibles Gross Carrying amount | 67 | 67 |
Definite-lived intangibles Accumulated Amortization | -67 | -67 |
Definite-lived intangibles Net Carrying Amount | 0 | 0 |
Developed technology and other intangible assets [Member] | ||
Definite-lived intangible assets: | ||
Definite-lived intangibles Gross Carrying amount | 120 | 119 |
Definite-lived intangibles Accumulated Amortization | -93 | -91 |
Definite-lived intangibles Net Carrying Amount | $27 | $28 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Weighted Average Amortization Periods for Intangible Assets Subject to Amortization (Detail) (Other Intangible Assets Member) | 12 Months Ended |
Dec. 31, 2014 | |
Other Intangible Assets Member | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Amortization Period | 9 years |
Goodwill_and_Intangible_Assets6
Goodwill and Intangible Assets - Expected Amortization Expense (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Goodwill and Intangible Assets [Abstract] | |
Fiscal year 2015 | $3 |
Fiscal year 2016 | 1 |
2017 and beyond | $23 |
Other_Income_Expense_Net_Detai
Other (Income) Expense, Net (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Expense (Income) - Net [Abstract] | |||
Net provision for bad debts | $4 | $4 | ($1) |
Net gains on sales of assets and divestitures | 0 | 0 | -6 |
Foreign currency exchange losses | 8 | 17 | 2 |
Royalty and grant income | -22 | -19 | -18 |
Miscellaneous other expense (income) | 12 | -3 | -14 |
Other expense (income) - net | $2 | ($1) | ($37) |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
The components of earnings before income taxes are as follows: | |||||||||||
Earnings before income taxes | ($502) | $278 | $367 | $287 | $261 | $268 | $357 | $235 | $430 | $1,121 | $1,008 |
Current | |||||||||||
U.S. Federal | 0 | 0 | 0 | ||||||||
Non-U.S. | 190 | 161 | 169 | ||||||||
U.S. State and Local | 0 | 0 | 2 | ||||||||
Total current | 190 | 161 | 171 | ||||||||
Deferred | |||||||||||
U.S. Federal | 30 | -39 | -98 | ||||||||
Non-U.S. | -127 | -1 | -97 | ||||||||
U.S. State and Local | 3 | -7 | -9 | ||||||||
Total deferred | -94 | -47 | -204 | ||||||||
Income tax expense (benefit) | 96 | 114 | -33 | ||||||||
The reconciliation of income taxes calculated at the U.S. federal statutory income tax rate of 35% to income tax expense is: | |||||||||||
Income taxes at U.S. statutory rate | 150 | 392 | 353 | ||||||||
U.S. state and local income taxes net of U.S. federal tax benefit | 3 | -6 | -7 | ||||||||
Difference in income tax on foreign earnings, losses and remittances | 5 | -23 | -197 | ||||||||
Tax holidays and incentives | -28 | -32 | -38 | ||||||||
Valuation allowance | 7 | 17 | -63 | ||||||||
Foreign and other tax credits | -47 | -196 | -82 | ||||||||
Tax benefit related to the enactment of tax legislation | -3 | -43 | -9 | ||||||||
Nondeductible expenses | 9 | 8 | 12 | ||||||||
Other | 0 | -3 | -2 | ||||||||
Income tax expense (benefit) | 96 | 114 | -33 | ||||||||
Income tax benefit related to various tax planning and restructuring actions | -255 | ||||||||||
United States [Member] | |||||||||||
The components of earnings before income taxes are as follows: | |||||||||||
Earnings before income taxes | 195 | 331 | 464 | ||||||||
The reconciliation of income taxes calculated at the U.S. federal statutory income tax rate of 35% to income tax expense is: | |||||||||||
Foreign and other tax credits | -196 | ||||||||||
Tax benefit related to the enactment of tax legislation | 15 | ||||||||||
Foreign Country [Member] | |||||||||||
The components of earnings before income taxes are as follows: | |||||||||||
Earnings before income taxes | $235 | $790 | $544 |
Income_Taxes_Income_Tax_Expens1
Income Taxes - Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income tax reconciliation | 35.00% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Pensions and postretirement benefits other than pensions | $274 | $218 |
Inventory | 40 | 41 |
Reserves and accruals | 315 | 327 |
Net operating loss and credit carryforwards | 617 | 682 |
Fixed assets and intangibles | 65 | 58 |
Other | 73 | 69 |
Total deferred tax assets | 1,384 | 1,395 |
Valuation allowance for deferred tax assets | -274 | -295 |
Total deferred tax assets net | 1,110 | 1,100 |
Deferred tax liabilities: | ||
Pensions and postretirement benefits other than pensions | -100 | -200 |
Fixed assets and intangibles | -282 | -266 |
Undistributed earnings of foreign subsidiaries | -104 | -116 |
Deferred gain | -56 | -59 |
Other | -63 | -81 |
Total deferred tax liabilities | -605 | -722 |
Net deferred taxes | $505 | $378 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ||||
Current deferred tax liability | $9 | $17 | ||
Net operating loss and credit carryforwards | 617 | 682 | ||
Deferred tax assets, net operating loss or tax credit carryforwards not subject to expiration | 220 | |||
Tax deductions in excess of financial statement amounts for stock based compensation and tax deductible goodwill | 147 | |||
Unrecognized tax benefit | 168 | 176 | 160 | 148 |
Unrecognized tax benefit that would affect effective tax rate | 129 | 136 | 118 | |
Deferred income tax, undistributed earnings of foreign subsidiaries not recognized | 3,400 | |||
Tax benefit (expense), change in valuation allowance on net deferred tax assets | -7 | -17 | 63 | |
Unrecognized tax benefits, accrued interest and penalties | 42 | 36 | 24 | |
Unrecognized tax benefits, interest and penalties expense | 10 | 12 | 1 | |
Tax (benefit) expense | 96 | 114 | -33 | |
Tax benefit related to the enactment of tax legislation | -3 | -43 | -9 | |
Deferred tax assets held-for-sale | 2 | |||
Deferred tax liabilities held-for-sale | 4 | |||
Utilization Of Valuation Allowance [Member] | ||||
Income Taxes [Line Items] | ||||
Tax benefit (expense), change in valuation allowance on net deferred tax assets | -27 | -37 | ||
Reversal Of Valuation Allowance [Member] | ||||
Income Taxes [Line Items] | ||||
Tax benefit (expense), change in valuation allowance on net deferred tax assets | 20 | 100 | ||
United Kingdom [Member] | ||||
Income Taxes [Line Items] | ||||
Tax benefit related to the enactment of tax legislation | 21 | 9 | ||
United Kingdom [Member] | Effective Prior To April First Twenty Twelve [Member] | ||||
Income Taxes [Line Items] | ||||
Corporate Income Tax Rate | 25.00% | |||
United Kingdom [Member] | Effective April First Twenty Twelve [Member] | ||||
Income Taxes [Line Items] | ||||
Corporate Income Tax Rate | 24.00% | |||
United Kingdom [Member] | Effective April First Twenty Thirteen [Member] | ||||
Income Taxes [Line Items] | ||||
Corporate Income Tax Rate | 23.00% | |||
United Kingdom [Member] | Effective April First Twenty Fourteen [Member] | ||||
Income Taxes [Line Items] | ||||
Corporate Income Tax Rate | 21.00% | |||
United Kingdom [Member] | Effective April First Twenty Fifteen [Member] | ||||
Income Taxes [Line Items] | ||||
Corporate Income Tax Rate | 20.00% | |||
United States [Member] | ||||
Income Taxes [Line Items] | ||||
Tax benefit related to the enactment of tax legislation | $15 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $176 | $160 | $148 |
Additions based on tax positions related to the current year | 16 | 14 | 12 |
Additions for tax positions of prior years | 8 | 32 | 40 |
Reductions for tax positions of prior years | -7 | -28 | -23 |
Reductions for settlements | -7 | -1 | -17 |
Reductions due to lapse in statute of limitations | -8 | -3 | -3 |
Change attributable to foreign currency translation | -10 | 2 | 3 |
Ending balance | $168 | $176 | $160 |
Retirement_Benefits_Reconcilia
Retirement Benefits - Reconciliation of Changes in Plans' Benefit Obligation, Fair Value of Assets and Funded Status (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in benefit obligation: | |||||||||||
Curtailment / settlement (gain) loss | $790 | $0 | $0 | $0 | $31 | $0 | $0 | $0 | $790 | $31 | $52 |
Pension Plans - U.S. | |||||||||||
Schedule Of Pension And Other Postretirment Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items] | |||||||||||
Total accumulated benefit obligation at end of period | 349 | 767 | 349 | 767 | |||||||
Change in benefit obligation: | |||||||||||
Benefit obligations at beginning of period | 769 | 1,073 | 769 | 1,073 | |||||||
Service cost | 2 | 2 | 4 | ||||||||
Interest cost | 37 | 42 | 59 | ||||||||
Plan amendments | 0 | 0 | |||||||||
Actuarial (gain) loss | 105 | -133 | |||||||||
Foreign currency exchange rate changes | 0 | ||||||||||
Curtailment / settlement (gain) loss | -520 | -153 | |||||||||
Net transfer in / (out) | 0 | 0 | |||||||||
Benefits paid | -43 | -62 | |||||||||
Benefit obligations at end of period | 350 | 769 | 350 | 769 | 1,073 | ||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of period | 695 | 804 | 695 | 804 | |||||||
Actual return on plan assets, less plan expense | 82 | 46 | |||||||||
Foreign currency exchange rate changes | 0 | 0 | |||||||||
Company contributions | 41 | 60 | |||||||||
Settlements | -520 | -153 | |||||||||
Benefits paid | -43 | -62 | |||||||||
Fair value of plan assets at end of period | 255 | 695 | 255 | 695 | 804 | ||||||
Funded status at end of period | -95 | -74 | -95 | -74 | |||||||
United Kingdom Foreign Pension Plans Defined Benefit [Member] | |||||||||||
Schedule Of Pension And Other Postretirment Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items] | |||||||||||
Total accumulated benefit obligation at end of period | 1,460 | 4,730 | 1,460 | 4,730 | |||||||
Change in benefit obligation: | |||||||||||
Benefit obligations at beginning of period | 4,729 | 4,730 | 4,729 | 4,730 | |||||||
Service cost | 0 | 0 | 0 | ||||||||
Interest cost | 206 | 189 | 215 | ||||||||
Plan amendments | 7 | 0 | |||||||||
Actuarial (gain) loss | 1,384 | -7 | |||||||||
Foreign currency exchange rate changes | -321 | 95 | |||||||||
Curtailment / settlement (gain) loss | -4,283 | 0 | |||||||||
Net transfer in / (out) | 0 | 0 | |||||||||
Benefits paid | -262 | -278 | |||||||||
Benefit obligations at end of period | 1,460 | 4,729 | 1,460 | 4,729 | 4,730 | ||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of period | 5,763 | 5,552 | 5,763 | 5,552 | |||||||
Actual return on plan assets, less plan expense | 1,022 | 320 | |||||||||
Foreign currency exchange rate changes | -361 | 122 | |||||||||
Company contributions | 219 | 47 | |||||||||
Settlements | -4,283 | 0 | |||||||||
Benefits paid | -262 | -278 | |||||||||
Fair value of plan assets at end of period | 2,098 | 5,763 | 2,098 | 5,763 | 5,552 | ||||||
Funded status at end of period | 638 | 1,034 | 638 | 1,034 | |||||||
Rest Of World Foreign Pension Plans Defined Benefit [Member] | |||||||||||
Schedule Of Pension And Other Postretirment Benefits Changes In Benefit Obligation And Fair Value Of Plan Assets [Line Items] | |||||||||||
Total accumulated benefit obligation at end of period | 754 | 865 | 754 | 865 | |||||||
Change in benefit obligation: | |||||||||||
Benefit obligations at beginning of period | 930 | 955 | 930 | 955 | |||||||
Service cost | 21 | 23 | 19 | ||||||||
Interest cost | 34 | 36 | 38 | ||||||||
Plan amendments | 2 | 1 | |||||||||
Actuarial (gain) loss | 237 | -34 | |||||||||
Foreign currency exchange rate changes | -113 | 0 | |||||||||
Curtailment / settlement (gain) loss | -224 | 0 | |||||||||
Net transfer in / (out) | 0 | ||||||||||
Benefits paid | -46 | -51 | |||||||||
Benefit obligations at end of period | 841 | 930 | 841 | 930 | 955 | ||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of period | 328 | 303 | 328 | 303 | |||||||
Actual return on plan assets, less plan expense | 31 | 48 | |||||||||
Foreign currency exchange rate changes | -26 | -23 | |||||||||
Company contributions | 61 | 51 | |||||||||
Settlements | -223 | 0 | |||||||||
Benefits paid | -46 | -51 | |||||||||
Fair value of plan assets at end of period | 125 | 328 | 125 | 328 | 303 | ||||||
Funded status at end of period | -716 | -602 | -716 | -602 | |||||||
Postretirement Benefits Other than Pension - U.S. | |||||||||||
Change in benefit obligation: | |||||||||||
Benefit obligations at beginning of period | 323 | 330 | 323 | 330 | |||||||
Service cost | 0 | 1 | 1 | ||||||||
Interest cost | 15 | 14 | 16 | ||||||||
Plan amendments | 0 | 57 | |||||||||
Actuarial (gain) loss | -23 | -40 | |||||||||
Foreign currency exchange rate changes | 0 | 0 | |||||||||
Plan participant contributions | 1 | 1 | |||||||||
Benefits paid | -28 | -40 | |||||||||
Benefit obligations at end of period | 288 | 323 | 288 | 323 | 330 | ||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of period | 0 | 0 | 0 | 0 | |||||||
Company contributions | 27 | 39 | |||||||||
Plan participant contributions | 1 | 1 | |||||||||
Benefits paid | -28 | -40 | |||||||||
Fair value of plan assets at end of period | 0 | 0 | 0 | 0 | 0 | ||||||
Funded status at end of period | -288 | -323 | -288 | -323 | |||||||
Foreign Postretirement Benefit Plans Defined Benefit [Member] | |||||||||||
Change in benefit obligation: | |||||||||||
Benefit obligations at beginning of period | 88 | 103 | 88 | 103 | |||||||
Service cost | 1 | 1 | 1 | ||||||||
Interest cost | 4 | 4 | 5 | ||||||||
Plan amendments | 0 | 3 | |||||||||
Actuarial (gain) loss | 10 | -10 | |||||||||
Foreign currency exchange rate changes | -7 | -6 | |||||||||
Plan participant contributions | 0 | 0 | |||||||||
Benefits paid | -6 | -7 | |||||||||
Benefit obligations at end of period | 90 | 88 | 90 | 88 | 103 | ||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of period | 0 | 0 | 0 | 0 | |||||||
Company contributions | 6 | 7 | |||||||||
Plan participant contributions | 0 | 0 | |||||||||
Benefits paid | -6 | -7 | |||||||||
Fair value of plan assets at end of period | 0 | 0 | 0 | 0 | 0 | ||||||
Funded status at end of period | ($90) | ($88) | ($90) | ($88) |
Retirement_Benefits_Additional
Retirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plans, curtailment (gain) loss | $1 | ($1) | |
EquitySecuritiesMember | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of assets | 5.00% | ||
DebtSecuritiesMember | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of assets | 52.00% | ||
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of assets | 4.00% | ||
Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of assets | 39.00% | ||
Pension Plans - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements of certain retirement plans | 117 | 148 | 298 |
Defined benefit plans, settlement (gain) loss | 35 | 88 | |
Expected contribution by employer to its plans | 0 | ||
United Kingdom Foreign Pension Plans Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements of certain retirement plans | 600 | ||
Expected contribution by employer to its plans | 7 | ||
Cash Contribution for Pension Settlement | 163 | ||
Pension Plans Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of the U.S. and U.K plan assets of the total defined benefit plans | 95.00% | ||
Rest Of World Foreign Pension Plans Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution by employer to its plans | 29 | ||
Other Postretirement Benefit Plans Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plans, settlement (gain) loss | -1 | ||
Defined benefit plans, curtailment (gain) loss | -28 | -36 | |
Expected contribution by employer to its plans | 32 | ||
Expected funding plans description | The Company funds its OPEB obligations on a pay-as-you-go basis. In 2015, the Company expects to contribute approximately $32 million to its OPEB plans. | ||
Canada Foreign Pension Plans Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlements of certain retirement plans | 73 | ||
Cash Contribution for Pension Settlement | $12 |
Retirement_Benefits_Amounts_Re
Retirement Benefits - Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | $663 | $1,059 |
Pension Plans - U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 2 | 2 |
Liabilities, held-for-sale | 0 | 0 |
Current liabilities | 0 | 0 |
Long-term liabilities | -97 | -76 |
Net amount recognized | -95 | -74 |
United Kingdom Foreign Pension Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 638 | 1,034 |
Liabilities, held-for-sale | 0 | 0 |
Current liabilities | 0 | 0 |
Long-term liabilities | 0 | 0 |
Net amount recognized | 638 | 1,034 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 23 | 23 |
Liabilities, held-for-sale | -40 | 0 |
Current liabilities | -22 | -25 |
Long-term liabilities | -677 | -600 |
Net amount recognized | -716 | -602 |
Postretirement Benefits Other than Pension - U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | -26 | -30 |
Long-term liabilities | -262 | -293 |
Net amount recognized | -288 | -323 |
Foreign Postretirement Benefit Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | -6 | -6 |
Long-term liabilities | -84 | -82 |
Net amount recognized | ($90) | ($88) |
Retirement_Benefits_Pretax_Amo
Retirement Benefits - Pre-tax Amounts Recognized in Accumulated Other Comprehensive Earnings (Losses) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Plans - U.S. | ||
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income Loss [Line Items] | ||
Prior service benefit (cost) | $0 | $0 |
Net gain (loss) | -80 | -132 |
Accumulated other comprehensive earnings (loss) | -80 | -132 |
United Kingdom Foreign Pension Plans Defined Benefit [Member] | ||
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income Loss [Line Items] | ||
Prior service benefit (cost) | 0 | 0 |
Net gain (loss) | -210 | -144 |
Accumulated other comprehensive earnings (loss) | -210 | -144 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | ||
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income Loss [Line Items] | ||
Prior service benefit (cost) | -4 | -3 |
Net gain (loss) | -300 | -197 |
Accumulated other comprehensive earnings (loss) | -304 | -200 |
Postretirement Benefits Other than Pension - U.S. | ||
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income Loss [Line Items] | ||
Prior service benefit (cost) | 50 | 58 |
Net gain (loss) | 19 | -2 |
Accumulated other comprehensive earnings (loss) | 69 | 56 |
Foreign Postretirement Benefit Plans Defined Benefit [Member] | ||
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income Loss [Line Items] | ||
Prior service benefit (cost) | 10 | 17 |
Net gain (loss) | -7 | 2 |
Accumulated other comprehensive earnings (loss) | $3 | $19 |
Retirement_Benefits_Pension_Pl
Retirement Benefits - Pension Plans With Accumulated Benefit Obligation in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Plans - U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $341 | $748 |
Accumulated benefit obligation | 339 | 746 |
Fair value of assets | 244 | 672 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 752 | 636 |
Accumulated benefit obligation | 665 | 572 |
Fair value of assets | $13 | $11 |
Retirement_Benefits_Components
Retirement Benefits - Components of Net Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive (Earnings) Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||
Amortization or curtailment recognition of prior service benefit (cost) | ($12) | ($17) | |
Pension Plans - U.S. | |||
Net pension cost (income) and Net postretirement benefit (income) cost: | |||
Service cost | 2 | 2 | 4 |
Interest cost | 37 | 42 | 59 |
Expected return on plan assets | -49 | -59 | -80 |
Curtailment/Settlement (gain) loss | 117 | 35 | 92 |
Amortization of prior service (benefit) cost | 0 | 0 | 2 |
Amortization of net (gain) loss | 8 | 27 | 19 |
Defined benefit plans | 115 | 47 | 96 |
Defined contribution plans cost | 23 | 22 | 22 |
Net defined benefit plan cost (income) | 138 | 69 | 118 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||
Prior service (benefit) cost | 0 | 0 | 0 |
Net (gain) loss | 72 | -120 | 33 |
Amortization or curtailment recognition of prior service benefit (cost) | 0 | 0 | -2 |
Amortization or settlement recognition of net gain (loss) | -125 | -62 | -110 |
Total recognized in other comprehensive (earnings) loss | -53 | -182 | -79 |
Total recognized net defined benefit plan (income) cost and other comprehensive (earnings) loss | 85 | -113 | 39 |
United Kingdom Foreign Pension Plans Defined Benefit [Member] | |||
Net pension cost (income) and Net postretirement benefit (income) cost: | |||
Service cost | 0 | 0 | 0 |
Interest cost | 206 | 189 | 215 |
Expected return on plan assets | -341 | -315 | -328 |
Curtailment/Settlement (gain) loss | 600 | 0 | 0 |
Amortization of prior service (benefit) cost | 0 | 0 | 0 |
Amortization of net (gain) loss | 0 | 0 | 0 |
Defined benefit plans | 465 | -126 | -113 |
Defined contribution plans cost | 4 | 3 | 3 |
Net defined benefit plan cost (income) | 469 | -123 | -110 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||
Prior service (benefit) cost | 7 | 0 | 0 |
Net (gain) loss | 703 | -12 | 295 |
Amortization or curtailment recognition of prior service benefit (cost) | -7 | 0 | 0 |
Amortization or settlement recognition of net gain (loss) | -592 | 0 | 0 |
Total recognized in other comprehensive (earnings) loss | 66 | -9 | 293 |
Total recognized net defined benefit plan (income) cost and other comprehensive (earnings) loss | 535 | -132 | 183 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | |||
Net pension cost (income) and Net postretirement benefit (income) cost: | |||
Service cost | 21 | 23 | 19 |
Interest cost | 34 | 36 | 38 |
Expected return on plan assets | -16 | -20 | -20 |
Curtailment/Settlement (gain) loss | 72 | 0 | 2 |
Amortization of prior service (benefit) cost | 1 | 1 | 0 |
Amortization of net (gain) loss | 11 | 18 | 9 |
Defined benefit plans | 123 | 58 | 48 |
Defined contribution plans cost | 24 | 16 | 16 |
Net defined benefit plan cost (income) | 147 | 74 | 64 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||
Prior service (benefit) cost | 2 | -1 | 1 |
Net (gain) loss | 223 | -61 | 125 |
Amortization or curtailment recognition of prior service benefit (cost) | -1 | 1 | -1 |
Amortization or settlement recognition of net gain (loss) | -84 | -19 | -11 |
Total recognized in other comprehensive (earnings) loss | 104 | -84 | 121 |
Total recognized net defined benefit plan (income) cost and other comprehensive (earnings) loss | 251 | -10 | 185 |
Postretirement Benefits Other than Pension - U.S. | |||
Net pension cost (income) and Net postretirement benefit (income) cost: | |||
Service cost | 0 | 1 | 1 |
Interest cost | 15 | 14 | 16 |
Curtailment/Settlement (gain) loss | 0 | -29 | -36 |
Amortization of prior service (benefit) cost | -8 | -13 | -22 |
Amortization of net (gain) loss | -2 | 1 | 0 |
Net defined benefit plan cost (income) | 5 | -26 | -41 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||
Prior service (benefit) cost | 0 | 57 | 0 |
Net (gain) loss | -23 | -40 | -6 |
Amortization or curtailment recognition of prior service benefit (cost) | 8 | 31 | 51 |
Amortization or settlement recognition of net gain (loss) | 2 | 9 | 6 |
Total recognized in other comprehensive (earnings) loss | -13 | 57 | 51 |
Total recognized net defined benefit plan (income) cost and other comprehensive (earnings) loss | -8 | 31 | 10 |
Foreign Postretirement Benefit Plans Defined Benefit [Member] | |||
Net pension cost (income) and Net postretirement benefit (income) cost: | |||
Service cost | 1 | 1 | 1 |
Interest cost | 4 | 4 | 5 |
Curtailment/Settlement (gain) loss | 0 | 0 | 0 |
Amortization of prior service (benefit) cost | -5 | -5 | -7 |
Amortization of net (gain) loss | 0 | 1 | 1 |
Net defined benefit plan cost (income) | 0 | 1 | 0 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (earnings) loss | |||
Prior service (benefit) cost | 0 | 3 | 3 |
Net (gain) loss | 10 | -9 | -8 |
Amortization or curtailment recognition of prior service benefit (cost) | 5 | 5 | 6 |
Amortization or settlement recognition of net gain (loss) | 1 | 0 | -1 |
Total recognized in other comprehensive (earnings) loss | 16 | -1 | 0 |
Total recognized net defined benefit plan (income) cost and other comprehensive (earnings) loss | $16 | $0 | $0 |
Estimated_amounts_to_be_amorti
Estimated amounts to be amortized from Accumulated other Comprehensive Earnings Over Next Fiscal Year (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension Plans - U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (benefit) cost | $0 |
Net (gain) loss | 7 |
Total | 7 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (benefit) cost | 1 |
Net (gain) loss | 29 |
Total | 30 |
Postretirement Benefits Other than Pension - U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (benefit) cost | -7 |
Net (gain) loss | -4 |
Total | -11 |
Foreign Postretirement Benefit Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (benefit) cost | -5 |
Net (gain) loss | 0 |
Total | ($5) |
Retirement_Benefits_WeightedAv
Retirement Benefits - Weighted-Average Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plans - U.S. | |||
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 5.00% | 4.00% | 4.75% |
Expected long-term return on plan assets | 7.50% | 7.75% | 7.75% |
Rate of increase in compensation levels | 3.50% | 5.00% | 4.76% |
Discount rate | 4.25% | 5.00% | |
Rate of increase in compensation levels | 5.00% | 3.50% | |
United Kingdom Foreign Pension Plans Defined Benefit [Member] | |||
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 4.50% | 4.25% | 4.75% |
Expected long-term return on plan assets | 6.25% | 6.25% | 6.25% |
Discount rate | 3.75% | 4.50% | |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | |||
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 4.18% | 3.90% | 4.82% |
Expected long-term return on plan assets | 6.31% | 6.53% | 6.50% |
Rate of increase in compensation levels | 2.90% | 2.90% | 2.92% |
Discount rate | 2.41% | 4.18% | |
Rate of increase in compensation levels | 2.89% | 2.90% | |
Postretirement Benefits Other than Pension - U.S. | |||
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 5.00% | 4.00% | 4.75% |
Discount rate | 4.00% | 5.00% | |
Initial health care cost trend rate at end of year | 7.00% | 6.90% | |
Ultimate health care cost trend rate | 4.50% | 5.00% | |
Year in which ultimate rate is reached | 2022 | 2018 | |
Foreign Postretirement Benefit Plans Defined Benefit [Member] | |||
Schedule Of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 4.75% | 4.00% | 4.50% |
Discount rate | 3.75% | 4.75% | |
Initial health care cost trend rate at end of year | 4.50% | 4.00% | |
Ultimate health care cost trend rate | 5.00% | 5.00% | |
Year in which ultimate rate is reached | 2017 | 2017 |
Retirement_Benefits_Fair_Value
Retirement Benefits - Fair Value of Company's United States and United Kingdom Pension Plan Assets, by Asset Category (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Inputs Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | $1,390 | $2,464 |
Fair Value Inputs Level 1 [Member] | Cash And Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 943 | 656 |
Fair Value Inputs Level 1 [Member] | Corporate Bond Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 1 [Member] | U.K. government guaranteed bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 359 | 1,724 |
Fair Value Inputs Level 1 [Member] | Equity Warrant Asset [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 86 | 80 |
Fair Value Inputs Level 1 [Member] | Common Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 2 | 4 |
Fair Value Inputs Level 1 [Member] | Structured equity holdings [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 1 [Member] | All Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 1 [Member] | Asset-backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | |
Fair Value Inputs Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 963 | 3,994 |
Fair Value Inputs Level 2 [Member] | Cash And Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Corporate Bond Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 109 | 1,864 |
Fair Value Inputs Level 2 [Member] | U.K. government guaranteed bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Equity Warrant Asset [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Common Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Structured equity holdings [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 114 | 916 |
Fair Value Inputs Level 2 [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | 99 | 148 |
Fair Value Inputs Level 2 [Member] | All Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | -24 | -15 |
Fair Value Inputs Level 2 [Member] | Asset-backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of pension plan assets | $665 | $1,081 |
Retirement_Benefits_Expected_F
Retirement Benefits - Expected Future Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Plans - U.S. | |
Schedule Of Pension And Other Postretirment Benefits Expected Benefit Payments [Line Items] | |
2015 | $7 |
2016 | 36 |
2017 | 10 |
2018 | 11 |
2019 | 12 |
2020 - 2024 | 76 |
United Kingdom Foreign Pension Plans Defined Benefit [Member] | |
Schedule Of Pension And Other Postretirment Benefits Expected Benefit Payments [Line Items] | |
2015 | 29 |
2016 | 24 |
2017 | 26 |
2018 | 28 |
2019 | 32 |
2020 - 2024 | 225 |
Rest Of World Foreign Pension Plans Defined Benefit [Member] | |
Schedule Of Pension And Other Postretirment Benefits Expected Benefit Payments [Line Items] | |
2015 | 24 |
2016 | 26 |
2017 | 28 |
2018 | 30 |
2019 | 31 |
2020 - 2024 | 183 |
Postretirement Benefits Other than Pension - U.S. | |
Schedule Of Pension And Other Postretirment Benefits Expected Benefit Payments [Line Items] | |
2015 | 27 |
2016 | 26 |
2017 | 25 |
2018 | 24 |
2019 | 23 |
2020 - 2024 | 96 |
Foreign Postretirement Benefit Plans Defined Benefit [Member] | |
Schedule Of Pension And Other Postretirment Benefits Expected Benefit Payments [Line Items] | |
2015 | 5 |
2016 | 5 |
2017 | 5 |
2018 | 5 |
2019 | 5 |
2020 - 2024 | $28 |
Retirement_Benefits_OnePercent
Retirement Benefits - One-Percentage-Point Change in Assumed Health Care Cost Trend Rate (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Postretirement Benefits Other than Pension - U.S. | |
Assumed Health Care Cost Trend Rates Effect Of One Percentage Point Change [Line Items] | |
Effect on total of service and interest cost components for the year ended December 31, 2011, One-Percentage-Point increase | $1 |
Effect on postretirement benefit obligation as of measurement date, One-Percentage-Point increase | 21 |
Effect on total of service and interest cost components for the year ended December 31, 2011, One-Percentage-Point decrease | -1 |
Effect on postretirement benefit obligation as of measurement date, One-Percentage-Point decrease | -18 |
Foreign Postretirement Benefit Plans Defined Benefit [Member] | |
Assumed Health Care Cost Trend Rates Effect Of One Percentage Point Change [Line Items] | |
Effect on total of service and interest cost components for the year ended December 31, 2011, One-Percentage-Point increase | 0 |
Effect on postretirement benefit obligation as of measurement date, One-Percentage-Point increase | 7 |
Effect on total of service and interest cost components for the year ended December 31, 2011, One-Percentage-Point decrease | 0 |
Effect on postretirement benefit obligation as of measurement date, One-Percentage-Point decrease | ($7) |
Fair_Value_Measurements_Recurr
Fair Value Measurements - Recurring and Nonrecurring Basis (Detail) (Fair Value Measurements Recurring [Member], Fair Value Inputs Level 2 [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | $7 | $6 |
Noncurrent Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 2 | 0 |
Current Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency contracts liabilities | 13 | 5 |
Noncurrent Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency contracts liabilities | $13 | $9 |
Financial_Instruments_Not_Carr
Financial Instruments - Not Carried at Fair Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | $222 | $159 |
Exchangeable Notes | 30 | 134 |
Carrying Reported Amount Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | 222 | 159 |
Long-term debt | 1,326 | 1,821 |
Exchangeable Notes | 30 | 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 | 222 | 159 |
Long-term debt | 1,389 | 1,884 |
Exchangeable Notes | $109 | $375 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Notional value | $2,600,000,000 | ||
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Effective portion of the gain (loss) on derivatives designated as cash flow hedges that was recognized in OCI | -6,000,000 | -33,000,000 | 80,000,000 |
Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Gains (losses) included in OCI expected to be reclassified into earnings in the next twelve months, net of tax | -3,000,000 | ||
Effective portion of gain (loss) on hedges reclassified from OCI into the statements of earnings | -5,000,000 | 1,000,000 | 3,000,000 |
Effective portion of the gain (loss) on derivatives designated as cash flow hedges that was recognized in OCI | -6,000,000 | -33,000,000 | 80,000,000 |
Nondesignated [Member] | Other Income And Expense [Member] | |||
Derivative [Line Items] | |||
Gain (loss) recognized in current earnings | ($25,000,000) | ($5,000,000) | $14,000,000 |
Financial_Instruments_Offsetti
Financial Instruments- Offsetting of Derivative Assets and Liabilities (Detail) (Foreign Exchange Contract [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Foreign Exchange Contract [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative assets, gross amount recognized | $45 | $42 |
Derivative assets, gross amounts offset | -36 | -36 |
Derivative asets, net amounts reported | 9 | 6 |
Derivative liabilities, gross amounts recognized | 62 | 50 |
Derivative liabilities, gross amounts offset | -36 | -36 |
Derivative liabilities, net amounts reported | $26 | $14 |
Debt_Total_Outstanding_Debt_De
Debt- Total Outstanding Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Line Items] | ||
Short-term debt | $222 | $159 |
Long-term debt: | ||
Exchangeable Notes | 30 | 134 |
Revolving credit facility | 0 | 0 |
Capitalized leases | 14 | 18 |
Other borrowings | 68 | 90 |
Total long-term debt | 1,356 | 1,955 |
Less current portion | 72 | 482 |
Long-term debt, net of current portion | 1,284 | 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 | 444 | 446 |
Senior Notes 4.45% Due 2023 [Member] | ||
Long-term debt: | ||
Senior Notes | $400 | $400 |
Debt_Total_Outstanding_Additio
Debt - Total Outstanding - Additional Information (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
Debt, Weighted Average Interest Rate | 5.40% | 5.90% |
Debt_Maturities_of_LongTerm_De
Debt - Maturities of Long-Term Debt Outstanding (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $72 | |
2016 | 25 | |
2017 | 448 | |
2018 | 3 | |
2019 | 3 | |
Thereafter | 805 | |
Total long-term debt | $1,356 | $1,955 |
Debt_Senior_Notes_Additional_I
Debt - Senior Notes - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2007 | Feb. 28, 2013 | Mar. 31, 2007 | Mar. 31, 2007 | Nov. 30, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Senior Notes [Member] | Senior Notes [Member] | Senior Notes 6.375% Due 2014 [Member] | Senior Notes 4.50% Due 2021 [Member] | Senior Notes 7.00% Due 2014 [Member] | Senior Notes 7.25% Due 2017 [Member] | Senior Notes 4.45% Due 2023 [Member] | |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||||||
Face amount | € 170 | $400 | $233 | $600 | $400 | |||||||||||||
Interest rate | 6.38% | 4.50% | 7.00% | 7.25% | 4.45% | |||||||||||||
Amount of debt repurchased | 91 | 48 | ||||||||||||||||
Loss (gain) on retirement of debt - net | 7 | 0 | 0 | 0 | 15 | 0 | 5 | 0 | 7 | 20 | 6 | 5 | 5 | |||||
Proceeds from issuance of long-term debt, net of fees | $13 | $881 | $3 |
Debt_Exchangeable_Senior_Notes
Debt - Exchangeable Senior Notes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2009 |
Debt Disclosure [Line Items] | ||||||||||||
Exchangeable Senior Notes pricipal amount exchanged for shares of company stock | $117 | $26 | ||||||||||
Number of shares of Company stock issued in exchange for notes being converted | 3,937,079 | 880,350 | ||||||||||
Gain (loss) on retirement of debt - net | -7 | 0 | 0 | 0 | -15 | 0 | -5 | 0 | -7 | -20 | -6 | |
Exchangeable Senior Unsecured Notes Three Point Five Zero 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 | 1 | 14 | 1 | 14 | ||||||||
Interest expense recognized | 11 | 13 | 13 | |||||||||
Interest expense on exchangeable notes, excluding amortization | 5 | 6 | 6 | |||||||||
Exchangeable notes sales price condition | $38.41 | |||||||||||
Exchangeable Senior Notes pricipal amount exchanged for shares of company stock | 116 | 26 | ||||||||||
Number of shares of Company stock issued in exchange for notes being converted | 3,937,079 | 880,350 | ||||||||||
Gain (loss) on retirement of debt - net | -7 | -3 | ||||||||||
Equity component of 3.5% exchangeable note repurchase | $289 | $37 |
Debt_Senior_Credit_Facilities_
Debt - Senior Credit Facilities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Line Items] | |||||||||||
Revolving credit facility, facility size | $1,400,000,000 | $1,400,000,000 | |||||||||
Gain (loss) on retirement of debt - net | -7,000,000 | 0 | 0 | 0 | -15,000,000 | 0 | -5,000,000 | 0 | -7,000,000 | -20,000,000 | -6,000,000 |
Fees paid to refinance credit facility | 0 | 0 | 9,000,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of Credit Facility, Description | The Revolving Credit Facility will mature on September 28, 2017; provided that if, as of the last fiscal day of October 2016, an aggregate amount of the 7.25% Senior Notes in excess of $100 million remains outstanding and the amount of available liquidity does not exceed the aggregate amount of cash necessary to redeem the 7.25% Senior Notes by at least $500 million, then the maturity date of the Revolving Credit Facility will be 20 business days after such date. | ||||||||||
Gain (loss) on retirement of debt - net | ($1,000,000) | ||||||||||
Commitment fee | 0.25% | ||||||||||
Revolving Credit Facility [Member] | Base Rate [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Applicable margin | 0.25% | 0.25% | |||||||||
Revolving Credit Facility [Member] | Euro Denominated [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Applicable margin | 1.25% | 1.25% |
Debt_Other_Borrowings_Detail
Debt- Other Borrowings (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Short-term borrowings under uncommited credit agreements | $221 |
Restructuring_Charges_and_Asse2
Restructuring Charges and Asset Impairments (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost And Reserve [Line Items] | |||
Severance and other charges | $66 | $56 | $91 |
Curtailment losses (gains) - net | -1 | 1 | |
Asset impairments related to restructuring activities | 12 | 2 | 2 |
Total restructuring charges | 77 | 59 | 93 |
Other asset impairments | 7 | 7 | 2 |
Total restructuring charges and asset impairments | 84 | 66 | 95 |
Chassis Systems [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and other charges | 55 | 22 | 64 |
Curtailment losses (gains) - net | -1 | 1 | |
Asset impairments related to restructuring activities | 12 | 0 | 2 |
Total restructuring charges | 66 | 23 | 66 |
Other asset impairments | 7 | 4 | 2 |
Total restructuring charges and asset impairments | 73 | 27 | 68 |
Occupant Safety Systems [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and other charges | 7 | 36 | 20 |
Curtailment losses (gains) - net | 0 | 0 | |
Asset impairments related to restructuring activities | 0 | 1 | 0 |
Total restructuring charges | 7 | 37 | 20 |
Other asset impairments | 0 | 0 | 0 |
Total restructuring charges and asset impairments | 7 | 37 | 20 |
Electronics [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and other charges | 0 | 0 | 0 |
Curtailment losses (gains) - net | 0 | 0 | |
Asset impairments related to restructuring activities | 0 | 0 | 0 |
Total restructuring charges | 0 | 0 | 0 |
Other asset impairments | 0 | 1 | 0 |
Total restructuring charges and asset impairments | 0 | 1 | 0 |
Automotive Components [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and other charges | 4 | -3 | 7 |
Curtailment losses (gains) - net | 0 | 0 | |
Asset impairments related to restructuring activities | 0 | 1 | 0 |
Total restructuring charges | 4 | -2 | 7 |
Other asset impairments | 0 | 2 | 0 |
Total restructuring charges and asset impairments | 4 | 0 | 7 |
Corporate [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance and other charges | 0 | 1 | 0 |
Curtailment losses (gains) - net | 0 | 0 | |
Asset impairments related to restructuring activities | 0 | 0 | 0 |
Total restructuring charges | 0 | 1 | 0 |
Other asset impairments | 0 | 0 | 0 |
Total restructuring charges and asset impairments | $0 | $1 | $0 |
Restructuring_Charges_and_Asse3
Restructuring Charges and Asset Impairments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | $77 | $59 | $93 |
Restructuring charges related global workforce reduction | 23 | 28 | 58 |
Restructuring charges related the closure or announced closure of various facilities | 54 | 31 | 35 |
Asset impairments related to restructuring activities | 12 | 2 | 2 |
Write-down of investments | 0 | 0 | 0 |
Other fixed asset impairments | 7 | 7 | 2 |
Restructuring reserve | 74 | 88 | 121 |
Restructuring reserve expected to be paid within one year | 70 | ||
Machinery And Equipment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Other fixed asset impairments | 7 | 6 | 2 |
Building [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Other fixed asset impairments | $0 | $1 | $0 |
Restructuring_Charges_and_Asse4
Restructuring Charges and Asset Impairments - Movement of Restructuring Reserves for Severance and Other Charges Including Reserves Related to Severance-Related Postemployment Benefits (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Charges and Asset Impairments [Abstract] | ||
Beginning balance | $88 | $121 |
Current period accruals, net of changes in estimates | 66 | 56 |
Liabilities held-for-sale | -2 | 0 |
Used for purposes intended | -69 | -95 |
Effects of foreign currency translation | -9 | 6 |
Ending balance | $74 | $88 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |||
Rental expense for operating leases | $110 | $111 | $112 |
Lease_Commitments_Future_Minim
Lease Commitments - Future Minimum Lease Payments for Noncancelable Capital and Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leases | |
2015 | $3 |
2016 | 3 |
2017 | 3 |
2018 | 3 |
2019 | 2 |
Thereafter | 3 |
Total minimum payments required | 17 |
Less amounts representing interest | 3 |
Present value of net minimum capital lease payments | 14 |
Less current installments | 2 |
Obligations under capital leases, excluding current installments | 12 |
Operating Leases | |
2015 | 60 |
2016 | 51 |
2017 | 47 |
2018 | 43 |
2019 | 48 |
Thereafter | 54 |
Total minimum payments required | $303 |
Transaction_Costs_Detail
Transaction Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Transaction Costs [Abstract] | |||
Transaction Costs | $20 | $0 | $0 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
Sep. 26, 2014 | Dec. 31, 2014 | Mar. 28, 2014 | |
Stockholders Equity Note [Line Items] | |||
Common stock, shares authorized | 500,000,000 | ||
Common stock, par value | $0.01 | ||
Common stock, shares outstanding | 114,547,079 | ||
Treasury stock, shares | 4,668 | ||
Preferred stock, shares authorized | 250,000,000 | ||
Preferred stock, par value | $0.01 | ||
Average cost of shares repurchased | $88.08 | ||
$2 Billion Share Repurchase Program [Member] | |||
Stockholders Equity Note [Line Items] | |||
Number of shares repurchased | 3,100,000 | ||
Stock Repurchase Program Authorized Amount | $2,000,000,000 | ||
Anti Dilution Program [Member] | |||
Stockholders Equity Note [Line Items] | |||
Number of shares repurchased | 1,500,000 | ||
Stock Repurchase Program Authorized Shares | 1,500,000 | ||
ASR March 2014 [Member] | |||
Stockholders Equity Note [Line Items] | |||
Number of shares repurchased | 700,000 | 3,900,000 | |
Value of capital stock repurchased | $400,000,000 | ||
Series A Preferred Stock [Member] | |||
Stockholders Equity Note [Line Items] | |||
Preferred stock, shares authorized | 500,000 | ||
Preferred stock, shares issued | 0 | ||
Preferred stock, shares outstanding | 0 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Maximum number of shares authorized under stock incentive plan | 6,150,000 | ||
Common stock available for issuance under the Plan | 3,379,736 | ||
Options outstanding | 214,663 | ||
Equity instruments other than options outstanding | 676,000 | 805,000 | |
Weighted-average grant-date fair value of SSARs and stock options granted | $9.29 | $7.23 | $6.58 |
Total intrinsic value of SSARs and stock options exercised | $85 | $57 | $26 |
Total fair value of restricted stock units vested | 32 | 26 | 22 |
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan | 24 | ||
Unrecognized compensation cost related to nonvested share-based compensation weighted-average period of recognition | 2 years | ||
Share based compensation expense | 36 | 36 | 21 |
Stock Appreciation Rights S A R S [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Equity instruments other than options outstanding | 2,320,699 | ||
Contractual term | 8 years | ||
Vesting period | 3 years | ||
Restricted Stock Units RSUs [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Equity instruments other than options outstanding | 676,131 | ||
Vesting period | 3 years | ||
Share based compensation expense | 24 | 26 | 16 |
Restricted Stock Units RSUs [Member] | Retirement Eligible Employees [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Equity instruments other than options outstanding | 142,911 | ||
Stock Options [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Contractual term | 8 years | ||
Vesting period | 3 years | ||
Incentive Compensation Cash Award [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Share based compensation expense | 0 | 1 | 4 |
Phantom Stock Units [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Equity instruments other than options outstanding | 12,650 | ||
Vesting period | 3 years | ||
Performance Units | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Equity instruments other than options outstanding | 70,425 | ||
Vesting period | 3 years | ||
Share based compensation expense | $3 | $0 | $0 |
ShareBased_Compensation_Signif
Share-Based Compensation - Significant Equity Award Grants (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Feb. 21, 2014 | Feb. 22, 2013 | Feb. 23, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number Granted | 299,000 | |||
Exercise price | $82.44 | |||
Stock Appreciation Rights S A R S [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number Granted | 850,900 | 1,199,551 | 1,282,518 | |
Exercise price | $82.50 | $58.20 | $45.11 | |
Maximum value | $130 | $110 | $95 | |
Restricted Stock Units RSUs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number Granted | 284,723 | 428,169 | 515,523 |
ShareBased_Compensation_ShareB
Share-Based Compensation - Share-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Share based compensation expense | $36 | $36 | $21 |
Stock Settled Stock Appreciation Rights And Employee Stock Options [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Share based compensation expense | 9 | 10 | 5 |
Restricted Stock Units RSUs [Member] | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Share based compensation expense | 24 | 26 | 16 |
Performance Units | |||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||
Share based compensation expense | $3 | $0 | $0 |
ShareBased_Compensation_Fair_V
Share-Based Compensation - Fair Value SSARs and Stock Options Estimated Using Black-Scholes Option Pricing (Detail) (Stock Settled Stock Appreciation Rights And Employee Stock Options [Member]) | 0 Months Ended | ||
Feb. 21, 2014 | Feb. 22, 2013 | Feb. 23, 2012 | |
Stock Settled Stock Appreciation Rights And Employee Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Method Used [Line Items] | |||
Expected volatility | 61.10% | 79.30% | 79.30% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | 5 years | 5 years | 5 years |
Risk-free rate | 1.53% | 0.83% | 0.89% |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of SSAR and Stock Option Activity Under Plan and Changes During Year (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 |
y | |
Options and SSARs | |
Outstanding at beginning of period | 3,572 |
Granted | 851 |
Exercised | 1,786 |
Forfeited or expired | 102 |
Outstanding at end of period | 2,535 |
Exercisable at end of period | 577 |
Weighted- Average Exercise Price | |
Outstanding at beginning of period | $47.88 |
Granted | $82.50 |
Exercised | $45.89 |
Forfeited or expired | $52.09 |
Outstanding at end of period | $60.73 |
Exercisable at end of period | $42.01 |
Weighted- Average Remaining Contractual Term | |
Outstanding at end of period | 6 |
Exercisable at end of period | 4.5 |
Aggregate Intrinsic Value | |
Outstanding at end of period | $104 |
Exercisable at end of period | $35 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Nonvested Restricted Stock Units (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units | |
Nonvested at beginning of period | 805 |
Granted | 299 |
Vested | 384 |
Forfeited | 44 |
Nonvested at end of period | 676 |
Weighted-Average Grant-Date Fair Value | |
Nonvested at beginning of period | $52.96 |
Granted | $82.44 |
Vested | $52.36 |
Forfeited | $59.66 |
Nonvested at end of period | $65.92 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Reserves for environmental matters | $71 | $68 |
Northrop indemnification percentage | 50.00% |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | Dec. 31, 2014 |
segment | |
Segment Information [Abstract] | |
Number of reportable segments | 4 |
Segment_Information_Financial_
Segment Information - Financial Information by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $4,348 | $4,156 | $4,593 | $4,442 | $4,496 | $4,212 | $4,514 | $4,213 | $17,539 | $17,435 | $16,444 |
Intersegment and Segment Sales | 18,377 | 18,197 | 17,148 | ||||||||
Interest expense - net | -109 | -132 | -111 | ||||||||
Gain (loss) on retirement of debt - net | -7 | 0 | 0 | 0 | -15 | 0 | -5 | 0 | -7 | -20 | -6 |
Net earnings attributable to noncontrolling interest, net of tax | 41 | 37 | 33 | ||||||||
Earnings before income taxes | -502 | 278 | 367 | 287 | 261 | 268 | 357 | 235 | 430 | 1,121 | 1,008 |
Capital expenditures | 694 | 735 | 623 | ||||||||
Depreciation and amortization | 444 | 430 | 409 | ||||||||
Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment and Segment Sales | 838 | 762 | 704 | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before taxes | -920 | -120 | -78 | ||||||||
Capital expenditures | 12 | 5 | 8 | ||||||||
Depreciation and amortization | 5 | 3 | 3 | ||||||||
Chassis Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 11,354 | 11,492 | 10,685 | ||||||||
Intersegment and Segment Sales | 11,370 | 11,506 | 10,705 | ||||||||
Earnings before taxes | 831 | 841 | 669 | ||||||||
Capital expenditures | 418 | 461 | 364 | ||||||||
Depreciation and amortization | 250 | 243 | 228 | ||||||||
Chassis Systems [Member] | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment and Segment Sales | 16 | 14 | 20 | ||||||||
Occupant Safety Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 3,357 | 3,314 | 3,287 | ||||||||
Intersegment and Segment Sales | 3,496 | 3,444 | 3,377 | ||||||||
Earnings before taxes | 282 | 239 | 254 | ||||||||
Capital expenditures | 118 | 112 | 104 | ||||||||
Depreciation and amortization | 83 | 79 | 80 | ||||||||
Occupant Safety Systems [Member] | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment and Segment Sales | 139 | 130 | 90 | ||||||||
Electronics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 937 | 721 | 654 | ||||||||
Intersegment and Segment Sales | 1,546 | 1,264 | 1,168 | ||||||||
Earnings before taxes | 144 | 126 | 132 | ||||||||
Capital expenditures | 70 | 80 | 61 | ||||||||
Depreciation and amortization | 51 | 42 | 38 | ||||||||
Electronics [Member] | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment and Segment Sales | 609 | 543 | 514 | ||||||||
Automotive Components [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,891 | 1,908 | 1,818 | ||||||||
Intersegment and Segment Sales | 1,965 | 1,983 | 1,898 | ||||||||
Earnings before taxes | 168 | 150 | 115 | ||||||||
Capital expenditures | 76 | 77 | 86 | ||||||||
Depreciation and amortization | 55 | 63 | 60 | ||||||||
Automotive Components [Member] | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Intersegment and Segment Sales | 74 | 75 | 80 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before taxes | $1,425 | $1,356 | $1,170 |
Segment_Information_Certain_Ba
Segment Information - Certain Balance Sheet Information by Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Segment assets | $10,728 | $11,712 |
Net deferred tax assets | 566 | 540 |
Total assets | 11,294 | 12,252 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment assets | 812 | 2,047 |
Chassis Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment assets | 5,842 | 5,632 |
Occupant Safety Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment assets | 2,024 | 2,162 |
Electronics [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment assets | 1,247 | 1,019 |
Automotive Components [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment assets | 803 | 852 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment assets | $9,916 | $9,665 |
Segment_Information_Certain_In
Segment Information - Certain Information Concerning Principal Geographic Areas (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $4,348 | $4,156 | $4,593 | $4,442 | $4,496 | $4,212 | $4,514 | $4,213 | $17,539 | $17,435 | $16,444 |
Property, plant and equipment, net | 2,645 | 2,718 | 2,645 | 2,718 | 2,385 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,496 | 4,992 | 4,713 | ||||||||
Property, plant and equipment, net | 567 | 534 | 567 | 534 | 563 | ||||||
Germany [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2,097 | 2,199 | 2,330 | ||||||||
Property, plant and equipment, net | 394 | 430 | 394 | 430 | 403 | ||||||
Rest Of World [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 7,815 | 7,486 | 7,200 | ||||||||
Property, plant and equipment, net | 1,119 | 1,276 | 1,119 | 1,276 | 1,062 | ||||||
China [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 3,131 | 2,758 | 2,201 | ||||||||
Property, plant and equipment, net | $565 | $478 | $565 | $478 | $357 |
Segment_Information_Sales_to_C
Segment Information - Sales to Company's Largest-End-Customers on Worldwide Basis (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Sales | $4,348 | $4,156 | $4,593 | $4,442 | $4,496 | $4,212 | $4,514 | $4,213 | $17,539 | $17,435 | $16,444 |
Aggregate Percent of Total Sales | 64.90% | 66.80% | 65.10% | ||||||||
Volkswagen Aktiengesellschaft [Member] | |||||||||||
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Sales | 4,525 | 4,298 | 3,863 | ||||||||
Ford Motor Company [Member] | |||||||||||
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Sales | 3,210 | 3,234 | 2,897 | ||||||||
General Motors [Member] | |||||||||||
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Sales | 1,288 | 1,757 | 1,649 | ||||||||
Fiat Chrysler Automobiles NV [Member] | |||||||||||
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Sales | $2,368 | $2,359 | $2,290 |
Unconsolidated_Affiliates_Comp
Unconsolidated Affiliates - Company's Beneficial Ownership in Affiliates Under Equity Method (Detail) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 30.00% | ||
Sm Sistemas Modulares Limited Brazil [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% |
Abc Sistemas E Modulos Limited Brazil [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 33.00% | 33.00% | 33.00% |
Csg Trw Chassis Systems Company Limited China [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% |
Shanghai Trw Automotive Safety Systems Company Limited China [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% |
Shin Han Beijing Automobile Parts System Company Limited China [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 30.00% | 30.00% | 30.00% |
Fuji Valve Guangdong Company Limited China [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 25.00% | 25.00% | 25.00% |
Th Braking Co Sas France [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% |
Rane Trw Steering Systems Ltd India [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% |
Brakes India Limited India [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% |
Trw Sun Steering Wheels Private Ltd India [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% |
Shin Han Valve Industrial Company Limited Korea [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 25.00% | 25.00% | 25.00% |
Components Venezolanos De Direccion Sociedad Anonima Venezuela [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 40.00% | 40.00% | 40.00% |
Evercast SA de CV Mexico [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 30.00% | 0.00% | 0.00% |
Unconsolidated_Affiliates_Inve
Unconsolidated Affiliates - Investment in affiliate (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Unconsolidated Affiliates [Abstract] | ||
Investment in affiliates | $231 | $207 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information (Unaudited) [Abstract] | |||||||||||
Sales | $4,348 | $4,156 | $4,593 | $4,442 | $4,496 | $4,212 | $4,514 | $4,213 | $17,539 | $17,435 | $16,444 |
Gross profit | 524 | 475 | 567 | 500 | 522 | 450 | 531 | 427 | 2,066 | 1,930 | 1,789 |
Pension and postretirement benefit settlement and curtailment expenses | 790 | 0 | 0 | 0 | 31 | 0 | 0 | 0 | 790 | 31 | 52 |
Restructuring charges and asset impairments | 48 | 10 | 6 | 20 | 23 | 5 | 1 | 37 | 84 | 66 | 95 |
Loss (gain) on retirement of debt - net | 7 | 0 | 0 | 0 | 15 | 0 | 5 | 0 | 7 | 20 | 6 |
Earnings (losses) before income taxes | -502 | 278 | 367 | 287 | 261 | 268 | 357 | 235 | 430 | 1,121 | 1,008 |
Net earnings (losses) attributable to TRW | ($360) | $189 | $265 | $199 | $363 | $197 | $248 | $162 | $293 | $970 | $1,008 |
Basic earnings (losses) per share | ($3.22) | $1.70 | $2.39 | $1.76 | $3.15 | $1.68 | $2.09 | $1.35 | $2.62 | $8.25 | $8.24 |
Diluted earnings (losses) per share | ($3.22) | $1.61 | $2.27 | $1.68 | $3 | $1.60 | $1.99 | $1.29 | $2.54 | $7.85 | $7.83 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance For Doubtful Accounts [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $29 | $30 | $38 |
Charged to Costs and Expenses | 4 | 4 | -1 |
Charged (Credited) to Other Accounts | 0 | 0 | 0 |
Deductions | 7 | 5 | 7 |
Balance at End of Period | 26 | 29 | 30 |
Valuation Allowance Of Deferred Tax Assets [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 295 | 250 | 273 |
Charged to Costs and Expenses | 7 | 17 | -63 |
Charged (Credited) to Other Accounts | -28 | 28 | 40 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $274 | $295 | $250 |