Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Mar. 17, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | Affinia Group Intermediate Holdings Inc. | |
Entity Central Index Key | 1328655 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Public Float | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net sales | $1,396 | $1,361 | $1,259 |
Cost of sales | -1,056 | -1,043 | -967 |
Gross profit | 340 | 318 | 292 |
Selling, general and administrative expenses | -199 | -200 | -172 |
Operating profit | 141 | 118 | 120 |
Loss on extinguishment of debt | -15 | -1 | |
Other income and expense, net | -13 | -1 | 3 |
Interest expense | -56 | -73 | -63 |
Income from continuing operations before income tax provision, equity in (loss) income, net of tax and noncontrolling interest, net of tax | 72 | 29 | 59 |
Income tax provision | -19 | -22 | -45 |
Equity in (loss) income, net of tax | -2 | 1 | |
Net income from continuing operations | 53 | 5 | 15 |
Income (loss) from discontinued operations, net of tax | 29 | 5 | -117 |
Net income (loss) | 82 | 10 | -102 |
Less: net income attributable to noncontrolling interest, net of tax | 1 | ||
Net income (loss) attributable to the Company | $82 | $10 | ($103) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income (loss) | $82 | $10 | ($102) | |||
Other comprehensive income (loss), net of tax: | ||||||
Pension liability adjustment | 1 | 1 | ||||
Change in fair value of interest rate swaps | -8 | [1] | 9 | [1] | ||
Change in foreign currency translation adjustments | -28 | [2] | -19 | [2] | -15 | [2] |
Reclassification adjustments included in net income | 2 | -2 | ||||
Total other comprehensive loss | -33 | -11 | -15 | |||
Total comprehensive income (loss) | 49 | -1 | -117 | |||
Less: comprehensive income attributable to noncontrolling interest, net of tax | 1 | |||||
Comprehensive income (loss) attributable to the Company | $49 | ($1) | ($118) | |||
[1] | Net of $1 million tax benefit in 2014 and $4 million tax expense in 2013. | |||||
[2] | Net of $6 million tax expense in 2014, $3 million tax expense in 2013 and $4 million tax expense in 2012. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Change in fair value of interest rate swaps, tax expense (benefit) | ($1) | $4 | |
Change in foreign currency translation adjustments, tax expense | $6 | $3 | $4 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $45 | $101 |
Restricted Cash | 4 | |
Trade accounts receivable, less allowances | 145 | 141 |
Inventories, net | 214 | 221 |
Current deferred taxes | 21 | 39 |
Prepaid taxes | 38 | 29 |
Other current assets | 46 | 32 |
Current assets of discontinued operations | 141 | |
Total current assets | 513 | 704 |
Property, plant, and equipment, net | 123 | 123 |
Goodwill | 3 | 3 |
Other intangible assets, net | 54 | 60 |
Deferred financing costs | 14 | 18 |
Deferred income taxes | 97 | 80 |
Investments and other assets | 17 | 21 |
Total assets | 821 | 1,009 |
Liabilities and shareholder's deficit | ||
Accounts payable | 138 | 121 |
Notes payable | 19 | 23 |
Current maturities of long-term debt | 7 | |
Other accrued expenses | 58 | 78 |
Accrued payroll and employee benefits | 20 | 19 |
Current liabilities of discontinued operations | 31 | |
Total current liabilities | 235 | 279 |
Long-term debt | 792 | 907 |
Deferred employee benefits and other noncurrent liabilities | 13 | 24 |
Total liabilities | 1,040 | 1,210 |
Contingencies and commitments | ||
Shareholder's deficit: | ||
Common stock, $.01 par value, 1,000 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 455 | 456 |
Accumulated deficit | -622 | -638 |
Accumulated other comprehensive loss | -53 | -20 |
Total shareholder's deficit of the Company | -220 | -202 |
Noncontrolling interest in consolidated subsidiaries | 1 | 1 |
Total shareholder's deficit | -219 | -201 |
Total liabilities and shareholder's deficit | $821 | $1,009 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $4 | $2 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholder's Equity (Deficit) (USD $) | Total | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total Shareholder's Equity of the Company [Member] | Noncontrolling Interest [Member] | |
In Millions | |||||||
Beginning, balance at Dec. 31, 2011 | $347 | $458 | ($130) | $6 | $334 | $13 | |
Stock-based compensation | 1 | 1 | 1 | ||||
Noncontrolling interest decrease due to acquisition of additional ownership | -4 | -4 | -4 | ||||
Noncontrolling interest decrease due to distribution of BPI | -13 | -13 | |||||
Distribution of BPI | -63 | -63 | -63 | ||||
Net income (loss) | -102 | -103 | -103 | 1 | |||
Currency translation - net of tax | -15 | [1] | -15 | -15 | |||
Ending, balance at Dec. 31, 2012 | 151 | 455 | -296 | -9 | 150 | 1 | |
Stock-based compensation | 1 | 1 | 1 | ||||
Net income (loss) | 10 | 10 | 10 | ||||
Dividends | -352 | -352 | -352 | ||||
Pension liability adjustment | 1 | 1 | 1 | ||||
Change in market value of interest rate swaps | 7 | 7 | 7 | ||||
Currency translation - net of tax | -19 | [1] | -19 | -19 | |||
Ending, balance at Dec. 31, 2013 | -201 | 456 | -638 | -20 | -202 | 1 | |
Stock-based compensation | -1 | -1 | -1 | ||||
Net income (loss) | 82 | 82 | 82 | ||||
Dividends | -66 | -66 | -66 | ||||
Pension liability adjustment | 1 | 1 | 1 | ||||
Change in market value of interest rate swaps | -6 | -6 | -6 | ||||
Currency translation - net of tax | -28 | [1] | -28 | -28 | |||
Ending, balance at Dec. 31, 2014 | ($219) | $455 | ($622) | ($53) | ($220) | $1 | |
[1] | Net of $6 million tax expense in 2014, $3 million tax expense in 2013 and $4 million tax expense in 2012. |
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 income (loss) | $82 | $10 | ($102) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 20 | 22 | 24 |
Currency devaluation | 7 | 2 | |
Gain on the sale of Chassis group | -32 | ||
Impairment of assets in discontinued operations | 86 | ||
Stock-based compensation | 3 | 1 | |
Loss on extinguishment of debt | 15 | 1 | |
Write-off of unamortized deferred financing costs | 1 | 8 | |
Write-off of original issue discount on Subordinated notes | 1 | ||
Provision for deferred income taxes | -19 | 26 | |
Change in trade accounts receivable | -41 | 6 | 23 |
Change in inventories | -10 | -3 | -22 |
Change in other current operating assets | -6 | -43 | 39 |
Change in other current operating liabilities | 20 | 24 | 38 |
Change in other | -5 | 30 | 10 |
Net cash provided by operating activities | 20 | 99 | 97 |
Investing activities | |||
Proceeds from the sale of Chassis group | 149 | ||
Proceeds from the sale of an equity method investment | 4 | ||
Change in restricted cash | -4 | ||
Proceeds from sales of assets | 3 | 4 | |
Investments in companies, net cash acquired | -1 | ||
Additions to property, plant, and equipment | -26 | -31 | -27 |
Other investing activities | 3 | ||
Net cash provided by (used in) investing activities | 126 | -32 | -23 |
Financing activities | |||
Net decrease in other short-term debt | -4 | ||
Repayments of other debt | -10 | -2 | |
Proceeds from other debt | 7 | ||
Payments of ABL Revolver | -110 | ||
Repayment on Secured Notes | -195 | -23 | |
Repayment on Subordinated Notes | -367 | ||
Dividend to Shareholder | -66 | -352 | |
Repayment of Term Loans | -123 | -3 | |
Proceeds from BPI's credit facility | 76 | ||
Cash related to the deconsolidation of BPI | -11 | ||
Payment of deferred financing costs | -15 | -1 | |
Proceeds from Term Loans | 667 | ||
Proceeds from Senior Notes | 250 | ||
Purchase of noncontrolling interest | -3 | ||
Net cash (used in) provided by financing activities | -192 | -15 | -78 |
Effect of exchange rates on cash | -10 | -2 | 1 |
(Decrease) increase in cash and cash equivalents | -56 | 50 | -3 |
Cash and cash equivalents at beginning of period | 101 | 51 | 54 |
Cash and cash equivalents at end of period | 45 | 101 | 51 |
Cash paid during the period for: | |||
Interest | 52 | 64 | 59 |
Income taxes | 24 | 20 | 21 |
Noncash investing and financing activities: | |||
Additions to property, plant and equipment included in accounts payable | $1 | $1 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
Affinia Group Intermediate Holdings Inc. (“Affinia” or the “Company”), headquartered in Gastonia, North Carolina, is an innovative global leader in the design, manufacture, distribution and marketing of industrial grade filtration products and services and replacement products in South America. The Company’s broad range of filtration and other products are sold in North America, Europe, South America, Asia and Africa. The Company’s brands include WIX®, FiltronTM, Nakata®, and ecoLAST®. Additionally, the Company provides private label products for certain customers, including NAPA®. | |
The Company is wholly-owned by Affinia Group Holdings Inc. (“Holdings”), a company controlled by affiliates of The Cypress Group L.L.C (“Cypress”). | |
The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. In these Notes to the Consolidated Financial Statements, the terms “the Company,” “we,” “our” and “us” refer to Affinia Group Intermediate Holdings Inc. and its subsidiaries on a consolidated basis. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Principles of Consolidation | |
The Consolidated Financial Statements include all domestic and foreign subsidiaries that were more than 50% owned and controlled as of each respective reporting period presented. All intercompany transactions have been eliminated. Investments in which the Company has the ability to exercise significant influence but does not control are accounted for using the equity method of accounting. Investments in which the Company is not able to exercise significant influence over are accounted for under the cost method of accounting. | |
Use of Estimates | |
These Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The preparation of financial statements that conform to GAAP in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. | |
Concentration of Credit Risk | |
The primary type of financial instruments that subject the Company to concentrations of credit risk are trade accounts receivable. The Company limits its credit risk by performing ongoing credit evaluations of its customers and, when deemed necessary, requires letters of credit, guarantees or collateral. The majority of the Company’s accounts receivable is due from replacement parts wholesalers and retailers serving the aftermarket. | |
The Company’s net sales to its largest customer as a percentage of total net sales from continuing operations for the years ended December 31, 2014, 2013 and 2012, was 23%, 22% and 23%, respectively. Net sales represent the amounts invoiced to customers after adjustments related to rebates, returns and discounts. The Company provides reserves for rebates, returns and discounts at the time of sale which are subsequently applied to the account of specific customers based upon actual activity including the attainment of targeted volumes. The Company’s largest customer’s accounts receivable as of December 31, 2014 and 2013, represented approximately 17% and 11%, respectively, of the total accounts receivable. | |
Foreign Currency Translation | |
Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date and equity accounts are translated at historical rates. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are presented in Change in foreign currency translation adjustments within the Consolidated Statements of Comprehensive Income (Loss). | |
Included in net income (loss) are the gains and losses arising from foreign currency transactions. The impact on income from continuing operations before income tax provision, equity in income (loss), net of tax and noncontrolling interest of foreign currency transactions including the results of the Company’s foreign currency hedging activities amounted to a loss of $13 million, loss of $6 million and a gain of $2 million in 2014, 2013 and 2012, respectively. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. | |
Restricted Cash | |
Restricted cash at December 31, 2014 relates to amounts on deposit in Venezuela to fund the procurement of U.S. Dollars via currency exchange auctions administered by the Venezuelan government. | |
Accounts receivable | |
The Company records trade accounts receivable when revenue is recorded in accordance with the Company’s revenue recognition policy and relieves accounts receivable when payments are received from customers. | |
Allowance for doubtful accounts | |
The allowance for doubtful accounts is established through charges to the provision for bad debts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts, and management’s evaluation of business risk. The allowance is an estimate that may be impacted by economic and market conditions which could have an effect on future allowance requirements and results of operations. | |
Inventories | |
Inventories are valued at the lower of cost or market. Cost is determined on the first-in, first-out (“FIFO”) method of inventory costing for all domestic inventories and at the Company’s Poland operations, or average cost basis for other non-U.S. inventories. | |
Goodwill | |
Goodwill is not amortized, but instead the Company evaluates goodwill for impairment, as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. In assessing the recoverability of goodwill, the Company performs a qualitative or quantitative assessment to test for impairment annually. If the Company determine, on the basis of qualitative factors, that a quantitative impairment test is required estimated future cash flows and other factors are made to determine the fair value of the respective reporting unit. If these estimates or related projections change in the future, the Company may be required to record impairment charges for goodwill at that time. | |
Intangibles | |
Affinia has trade names with indefinite lives and other intangibles with definite lives. Affinia tests trade names for impairment on an annual basis as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. Trade names are tested for impairment by comparing the fair value to their carrying values. | |
The Company’s intangibles with definite lives consist of customer relationships, patents and developed technology. These assets are amortized on a straight-line basis over estimated useful lives ranging from 5 to 20 years. Certain conditions may arise that could result in a change in useful lives or require the Company to perform a valuation to determine if the definite lived intangibles are impaired. | |
Deferred Financing Costs | |
Deferred financing costs are incurred to obtain long-term financing and are amortized using the effective interest method over the term of the related debt. The amortization of deferred financing costs is classified in interest expense in the statement of operations. | |
Depreciation | |
Fixed assets are depreciated over their estimated remaining lives using the straight-line method for financial reporting purposes and accelerated depreciation methods for federal income tax purposes. Major additions and improvements are capitalized and depreciated over their estimated useful lives, and repairs and maintenance are charged to expense in the period incurred. The Company reviews long-lived assets for impairment and generally accepted accounting principles require recognition of an impairment loss only if the carrying amount of a long-lived asset is not recoverable from its undiscounted cash flows. If the long-lived asset is not recoverable, the Company measures an impairment loss as the difference between the carrying amount and fair value of the asset. | |
Useful lives for buildings and building improvements, machinery and equipment, tooling and office equipment, furniture and fixtures principally range from 20 to 30 years, five to ten years, three to five years and three to ten years, respectively. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds is recorded as a gain or loss on disposition. | |
Revenue Recognition | |
Sales are recognized when products are shipped or received, depending on the contractual terms, and risk of loss has transferred to the customer. The Company estimates and records provisions for warranty costs, sales returns, rebates and other allowances based on experience and other relevant factors, when sales are recognized. The Company assesses the adequacy of its recorded warranty, sales returns, rebates and allowances liabilities on a regular basis and adjusts the recorded amounts as necessary. While management believes that these estimates are reasonable, actual warranty costs, actual returns, rebates and allowances may differ from estimates. Shipping and handling fees billed to customers are included in sales and the costs of shipping and handling are included in cost of sales. | |
Income Taxes | |
Income taxes are recognized during the period in which transactions enter into the determination of financial statement income, with deferred income taxes being provided for the tax effect of temporary differences between the carrying amount of assets and liabilities and their tax basis. Deferred income taxes are provided on the undistributed earnings of foreign subsidiaries and affiliated companies except to the extent such earnings are considered to be permanently reinvested in the subsidiary or affiliate. In cases where foreign tax credits will not offset U.S. income taxes, amounts are included in the Income tax provision within Consolidated Statement of Operations. | |
The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. | |
Financial Instruments | |
The reported fair values of financial instruments, consisting of cash and cash equivalents, trade accounts receivable and long-term debt, are based on a variety of factors. Where available, fair values represent quoted market prices for identical or comparable instruments. Where quoted market prices are not available, fair values are estimated based on assumptions concerning the implied market volatilities, amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of credit and market risk. Fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. As of December 31, 2014 and 2013, the book value of some of the Company’s financial instruments, consisting of cash and cash equivalents and trade accounts receivable, approximated their fair values. The fair value of long-term debt is discussed further in Note 6 Debt. | |
Environmental Compliance and Remediation | |
Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to existing conditions caused by past operations which do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Estimated costs are based upon current laws and regulations, existing technology and the most probable method of remediation. The costs are not discounted and exclude the effects of inflation. If the cost estimates result in a range of equally probable amounts, the lower end of the range is accrued. | |
Advertising Costs | |
Advertising costs are recognized in Selling, general and administrative expenses within the Consolidated Statements of Operations at the time advertising when incurred. Advertising expenses included in continuing operations were $20 million, $19 million and $20 million for the years 2014, 2013, and 2012, respectively. The advertising expenses included in discontinued operations, were nil, $2 million and $7 million for the years 2014, 2013, and 2012, respectively. | |
Promotional Programs | |
Cooperative advertising programs conducted with customers that promote the Company’s products are accrued as a rebate based on anticipated total amounts to be rebated to customers over the period of the agreement with the customer. Rebates are reflected in Net sales within the Consolidated Statements of Operations. Aftermarket distributors typically source their product lines at a particular price point and product category with one “full-line” supplier, such as Affinia, which covers substantially all of their product requirements. Switching to a new supplier typically requires that a distributor or supplier make a substantial investment to purchase, or “changeover” to, the new supplier’s products. The changeover costs and other incentives incurred in connection with obtaining new business are recognized as selling expense in the period in which the changeover from a competitor’s product to the Company’s product occurs. Infrequently, the Company enters into a contract with a customer for a set period of time that requires the reimbursement of the incentive by the customer if the future conditions of the contract are not met. In these infrequent cases the incentive is recorded as a reduction of revenue over the life of the contract. | |
Insurance | |
The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, vehicle liability and the Company-funded portion of employee-related health care benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. | |
Research and Development Costs | |
The Company charges research and development expenses, relating to the development of new products or the improvements or redesign of its existing products, to expense when incurred. The Company incurred less than $1 million for each of the years ended 2014, 2013 and 2012. These costs are recognized in Cost of sales within the Consolidated Statements of Operations. | |
Derivatives | |
The Company is subject to various financial risks during the normal course of business operations, including but not limited to, adverse changes to interest rates, currency exchange rates, counterparty creditworthiness, and commodity prices. The Company may utilize financial derivative instruments in order to mitigate the potential impact of these factors. The Company’s policies strictly prohibit the use of derivatives for speculative purposes. | |
The Company uses derivative financial instruments to manage the risk that changes in interest rates will have on the amount of future interest payments. Interest rate swap contracts are used to adjust the proportion of total debt that is subject to variable versus fixed interest rates. Under these agreements, the Company agrees to pay an amount equal to a specified fixed rate times a notional principal amount, and to receive an amount equal to a specified variable rate times the same notional principal amount or vice versa. The notional amounts of the contract are not exchanged. No other cash payments are made unless the contract is terminated prior to maturity, in which case the amount paid or received in settlement is established by agreement at the time of termination and will represent the net present value, at current rates of interest, of the remaining obligation to exchange payments under the terms of the contract. The Company measures hedge effectiveness, at least quarterly, by using the hypothetical derivative method. | |
The Company’s derivative instrument portfolio includes standard forward currency contracts and interest rate swaps. Beginning in 2014, the Company began utilizing forward currency contracts that are intended to offset foreign exchange risk for certain forecasted gross receivable and payable balances. These contracts qualify for, and the Company has elected to apply, hedge accounting treatment under ASC 815 “Derivatives and Hedging” (“ASC 815”). In accordance with ASC 815, gains or losses on outstanding hedges are recorded as a component of Accumulated Other Comprehensive Income (“AOCI”) and reclassified into net income in the same period during which the hedged transaction impacts net income. Prior to entering into the forward currency contracts in 2014, the Company entered into currency forward contract that were intended to offset the earnings impact related to the periodic revaluation of specific non-functional currency denominated monetary working capital accounts and intercompany financing arrangements. The Company did not elect hedge accounting treatment for these currency forward contacts because the earnings impact from both the underlying exposures and the hedge transactions were recognized in earnings each accounting period. The Company uses interest rate swaps to manage the ratio of net floating-rate debt to total debt outstanding, thereby reducing the potential impact that interest rate variability may have on its consolidated financial results. The Company has designated its interest rate swaps as cash flow hedges. | |
Stock-Based Compensation | |
The Company accounts for equity awards issued under its 2005 Stock Plan in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). See Note 13 for additional information. | |
Deferred Compensation Plan | |
The Company established a deferred compensation plan in 2008 that permitted executives to defer receipt of all or a portion of the amounts payable under the non-equity incentive compensation plan. All amounts deferred were treated solely for purposes of the plan to have been notionally invested in the common stock of Holdings. As such, the accounts under the plan will reflect investment gains and losses associated with an investment in Holdings’ common stock. The Company matched 25% of the deferral with an additional notional investment in common stock of Holdings, which is subject to vesting as provided in the plan. | |
New Accounting Pronouncements | |
Adopted Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.”ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The adoption of this standard has not had any impact on the presentation of unrecognized tax benefits in the Consolidated Balance Sheets. | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 amends the definition of a discontinued operation in Accounting Standards Codification (“ASC”) 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation. In addition, the ASU requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods in the statement of financial position, as well as significant changes to the presentation requirements within the statement of cash flows. This ASU is effective for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. The adoption of this ASU could have a significant impact on the financial statement presentation associated with any disposal transactions that may occur in the future. | |
Accounting Pronouncements Issued But Not Yet Adopted | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU is effective for reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently assessing the impact that this new ASU will have on its revenue recognition upon adoption. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern.” ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This ASU is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the updated guidance to have a material impact on the consolidated financial position, results of operations or cash flows. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Information | 3. SEGMENT INFORMATION | ||||||||||||||||||||||||
The Company has two operating segments, Filtration and Affinia South America (“ASA”), which are considered reportable segments under ASC 280 “Segment Reporting.” Operating segments are determined based on information used by the chief operating decision maker (“CODM”) in deciding how to allocate resources and evaluate the performance of the Company’s businesses. Management evaluates the performance of its operating segments based primarily on revenue growth and operating profit. Although not considered an operating segment, corporate, eliminations and other includes corporate costs, interest expense and other amounts not allocated to the operating segments. | |||||||||||||||||||||||||
The Filtration segment is the Company’s largest business unit, having contributed approximately 70% of global revenues for the year ended December 31, 2014. The Company’s Filtration products fit medium and heavy duty trucks, light vehicles, equipment in the off-highway market (i.e. residential and non-residential construction, mining, forestry and agricultural) and equipment for industrial and marine applications. The Filtration segment’s products include oil, air, fuel, cabin air, coolant, hydraulic and other filters for many types of vehicles and machinery. The products are sold under well-known brands, such as WIX® and FiltronTM, and private label brands including NAPA®. | |||||||||||||||||||||||||
The ASA segment focuses on distributing and manufacturing brake, suspension, driveshaft and U-joint components, water and fuel pumps, filters, engine products, motorcycle products, accessories and other critical aftermarket components through its operations in Argentina, Brazil, Uruguay and Venezuela. The majority of the ASA segment’s revenue is generated in Brazil. In Brazil, ASA’s operations are conducted through Affinia Automotiva, an aftermarket parts manufacturer and master distributor, and Pellegrino, a warehouse distributor. Affinia Automotiva manufactures Nakata® brand shock absorbers and distributes those and third party products to warehouse distributors, including Pellegrino. | |||||||||||||||||||||||||
The following table presents financial information for each reportable segment, as well as for corporate, eliminations and other, and on a consolidated basis: | |||||||||||||||||||||||||
(Dollars in millions) | Net Sales | Operating Profit | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Filtration | $ | 967 | $ | 902 | $ | 831 | $ | 150 | $ | 132 | $ | 122 | |||||||||||||
ASA | 430 | 459 | 430 | 34 | 36 | 32 | |||||||||||||||||||
Corporate, eliminations and other | (1 | ) | — | (2 | ) | (43 | ) | (50 | ) | (34 | ) | ||||||||||||||
Consolidated | $ | 1,396 | $ | 1,361 | $ | 1,259 | $ | 141 | $ | 118 | $ | 120 | |||||||||||||
(Dollars in millions) | Total Assets | ||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Filtration | $ | 443 | $ | 405 | |||||||||||||||||||||
ASA | 199 | 220 | |||||||||||||||||||||||
Corporate, eliminations and other(1) | 179 | 243 | |||||||||||||||||||||||
Assets of discontinued operations(2) | — | 141 | |||||||||||||||||||||||
Consolidated | $ | 821 | $ | 1,009 | |||||||||||||||||||||
-1 | Corporate assets consist of cash, deferred income taxes, corporate facility and various other assets that are not specific to an operating segment. | ||||||||||||||||||||||||
-2 | The amounts related to the Chassis group are classified in the current assets of discontinued operations in 2013. | ||||||||||||||||||||||||
Depreciation and | Capital Expenditures | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Filtration | $ | 16 | $ | 15 | $ | 14 | $ | 22 | $ | 22 | $ | 12 | |||||||||||||
ASA | 3 | 3 | 3 | 4 | 5 | 5 | |||||||||||||||||||
Corporate, eliminations and other | 1 | 3 | 5 | — | — | — | |||||||||||||||||||
Total from continuing operations | 20 | 21 | 22 | 26 | 27 | 17 | |||||||||||||||||||
Discontinued operations | — | 1 | 2 | — | 4 | 10 | |||||||||||||||||||
Consolidated | $ | 20 | $ | 22 | $ | 24 | $ | 26 | $ | 31 | $ | 27 | |||||||||||||
Net sales by geographic region were as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Brazil | $ | 390 | $ | 411 | $ | 389 | |||||||||||||||||||
Canada | 46 | 47 | 47 | ||||||||||||||||||||||
Poland | 167 | 161 | 146 | ||||||||||||||||||||||
Venezuela | 73 | 75 | 48 | ||||||||||||||||||||||
Other Countries | 91 | 89 | 74 | ||||||||||||||||||||||
Total Other Countries | 767 | 783 | 704 | ||||||||||||||||||||||
United States | 629 | 578 | 555 | ||||||||||||||||||||||
Consolidated | $ | 1,396 | $ | 1,361 | $ | 1,259 | |||||||||||||||||||
Long-lived assets by geographic region were as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013(1) | |||||||||||||||||||||||
China | $ | 18 | $ | 18 | |||||||||||||||||||||
Brazil | 13 | 14 | |||||||||||||||||||||||
Poland | 27 | 30 | |||||||||||||||||||||||
Other Countries | 10 | 12 | |||||||||||||||||||||||
Total other countries | 68 | 74 | |||||||||||||||||||||||
United States | 126 | 130 | |||||||||||||||||||||||
Consolidated | $ | 194 | $ | 204 | |||||||||||||||||||||
-1 | Long-lived assets as of December 31, 2013 exclude $52 million for the Chassis group, which is classified in current assets of discontinued operations. | ||||||||||||||||||||||||
Net sales by geographic area were determined based on origin of sale. Geographic data on long-lived assets are comprised of property, plant and equipment, goodwill, other intangible assets and deferred financing costs. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | 4. DISCONTINUED OPERATIONS | ||||||||||||
In the fourth quarter of 2013, management committed to a plan to sell the Chassis group. Pursuant to ASC Topic 205, “Presentation of Financial Statements,” the Chassis group met the definition of a disposal group at the time management committed to a plan to sell the group and, accordingly, the results of operations of the Chassis group have been classified as a component of discontinued operations. On January 21, 2014, Affinia entered into an Asset Purchase Agreement, as amended, with Federal-Mogul Chassis, LLC (formerly known as VCS Quest Acquisition LLC) (“FM Chassis”), an affiliate of Federal-Mogul Corporation, pursuant to which FM Chassis agreed to purchase the Chassis group. This transaction closed on May 1, 2014. The Consolidated Statements of Cash Flows were not adjusted to reflect this group as a discontinued operation for any period presented. | |||||||||||||
Upon the closing of this transaction in May 2014, Affinia received cash proceeds of $140 million, which represented the agreed upon selling price of $150 million less a holdback of $10 million until completion of certain post-closing performance obligations. In September 2014, the post-closing performance obligations were completed and the Company received $9 million of cash proceeds with the remaining $1 million allocated to a post-closing purchase price adjustment. There are no additional material obligations of either party associated with this transaction. | |||||||||||||
The sale of the Chassis group resulted in a pre-tax gain of $32 million, of which $21 million was recorded in the second quarter of 2014 and $11 million was recorded in the third quarter of 2014. These amounts are reflected in the Consolidated Statements of Operations within the Income from discontinued operations, net of tax. The Company released an $18 million capital loss valuation allowance as a result of the sale, the tax benefit of which offset the tax expense incurred by the gain on the sale. This resulted in a tax expense of $6 million on the transaction. | |||||||||||||
In addition to the gain on the sale discussed above, the following table shows the Chassis group’s net sales, income before income tax provision and net income that are included within Income from discontinued operations, net of tax on the Consolidated Statements of Operations. | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Net sales | $ | 64 | $ | 189 | $ | 194 | |||||||
Income before income tax provision | 5 | 15 | 10 | ||||||||||
Income tax provision | (2 | ) | (10 | ) | (3 | ) | |||||||
Income from discontinued operations, net of tax | $ | 3 | $ | 5 | $ | 7 | |||||||
Affinia and FM Chassis entered into a transition services agreement (“TSA”) effective with the sale on May 1, 2014. The TSA provides for certain administrative and other services and support to be provided by Affinia to FM Chassis and to be provided by FM Chassis to Affinia. Most of the transition services expired in 2014 or will expire in 2015. The TSA was established as an arm’s length transaction and is intended for the contracting parties to recover costs of the services provided. | |||||||||||||
The following table shows the Chassis group’s assets and liabilities that are included in assets of discontinued operations and liabilities of discontinued operations as of December 31, 2013: | |||||||||||||
(Dollars in millions) | |||||||||||||
Cash | $ | 1 | |||||||||||
Accounts receivable | 9 | ||||||||||||
Inventory | 74 | ||||||||||||
Other current assets | 4 | ||||||||||||
Property, plant and equipment | 8 | ||||||||||||
Goodwill | 22 | ||||||||||||
Other intangible assets | 22 | ||||||||||||
Other assets | 1 | ||||||||||||
Total assets of discontinued operations | $ | 141 | |||||||||||
Accounts payable | $ | 18 | |||||||||||
Other accrued expenses | 12 | ||||||||||||
Accrued payroll and employee benefits | 1 | ||||||||||||
Total liabilities of discontinued operations | $ | 31 | |||||||||||
In the fourth quarter of 2011, management committed to a plan to sell the Brake North America and Asia group at which time the Brake North America and Asia group qualified as a discontinued operation. The Consolidated Statements of Operations for all periods presented have been adjusted to reflect this group as a discontinued operation. The Consolidated Statements of Cash Flows for all periods presented were not adjusted to reflect this group as a discontinued operation. | |||||||||||||
On November 30, 2012, the Company distributed its Brake North America and Asia group to the shareholders of Holdings, the Company’s parent company and sole stockholder. The new organization is led by the management team from the Company’s former Brake North America and Asia group, with oversight provided by a separate board of directors. On March 25, 2013, the new organization announced that it had been acquired by a group of investors. | |||||||||||||
To effect the transaction, the Company distributed 100% of the capital stock of BPI Holdings International, Inc. (“BPI”), an entity formed for the purpose of completing the transaction and which owns the assets and operations comprising the Company’s former Brake North America and Asia group, to Holdings. Thereafter, Holdings distributed such capital stock to the holders of Holdings common stock and to the holders of Holding’s 9.5% Class A Convertible Participating Preferred Stock, par value $0.01 per share (“Preferred Stock”), on a pro rata basis as if each of the shares of Preferred Stock outstanding at the time of the distribution had been converted into Holdings common stock in accordance with its terms prior to the distribution. The fair value of the capital stock distributed to the shareholders of Holdings was $63 million. In addition, noncontrolling interest decreased by $13 million due to the distribution of BPI. | |||||||||||||
In connection with the distribution, the Company received a $70 million cash dividend from BPI, which BPI funded through $76.5 million in borrowings under a new credit facility that is not guaranteed by, or an obligation of, the Company or any of its subsidiaries. BPI held $11 million in cash that was included in the distribution on November 30, 2012. | |||||||||||||
Affinia and BPI entered into a TSA effective with the distribution on November 30, 2012. The TSA provides for certain administrative and other services and support to be provided by Affinia to BPI and to be provided by BPI to Affinia. Most of the transition services expired during 2014. The TSAs and the distribution services were established as arm length transactions and are intended for the contracting parties to recover costs of the services. | |||||||||||||
On the date of the distribution, the Company no longer had any influence over BPI. The Company evaluated all potential variable interests between Affinia and BPI and determined that the Company is not the primary beneficiary of BPI. Consequently, the Company deconsolidated BPI on the date of the distribution. | |||||||||||||
The table below summarizes the Brake North America and Asia group’s net sales, loss before income tax provision, income tax provision, income (loss) from discontinued operations, net of tax, net income attributable to noncontrolling interest, net of tax and loss attributable to the discontinued operations. | |||||||||||||
(Dollars in millions) | 2012 | ||||||||||||
Net sales | $ | 582 | |||||||||||
Loss before income tax provision | (91 | ) | |||||||||||
Income tax provision | (33 | ) | |||||||||||
Loss from discontinued operations, net of tax | (124 | ) | |||||||||||
Less: net income attributable to noncontrolling interest, net of tax | 1 | ||||||||||||
Loss from discontinued operations, net of tax | $ | (125 | ) | ||||||||||
The Company entered into an Asset Purchase Agreement with Carter Automotive Company Inc. (“Carter”) on June 28, 2012, pursuant to which Carter purchased certain assets located at the Company’s Juarez, Mexico facility, which is included in the Brake North America and Asia group, for $3 million. The transaction resulted in an impairment and loss on sale of $6 million on fixed assets and inventory for the second quarter of 2012. |
Derivatives
Derivatives | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Derivatives | 5. DERIVATIVES | ||||||||||||
The Company’s financial derivative assets and liabilities consist of standard currency forward contracts and interest rate swaps. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | |||||||||||||
• | Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. | ||||||||||||
• | Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | ||||||||||||
• | Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. | ||||||||||||
All derivative instruments are recognized on the Company’s balance sheet at fair value. The fair value measurements of the Company’s currency forward contracts and interest rate swaps are based upon Level 2 inputs consisting of observable market data, as reported by a recognized independent third-party financial information provider. Based upon the Company’s periodic assessment of its own creditworthiness, and of the creditworthiness of the counterparties to its derivative instruments, fair value measurements are not adjusted for nonperformance risk. | |||||||||||||
Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”): | |||||||||||||
A. | Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models). | ||||||||||||
B. | Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | ||||||||||||
C. | Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). | ||||||||||||
The Company’s fair value of interest rate swaps and its currency forward contract derivatives at December 31, 2014 and 2013 are set forth in the table below: | |||||||||||||
(Dollars in Millions) | Asset | Level 2 | Valuation | ||||||||||
(Liability) | Technique | ||||||||||||
December 31, 2014: | |||||||||||||
Interest rate swap contracts | $ | 2 | $ | 2 | A | ||||||||
Foreign currency forward contracts | — | — | A | ||||||||||
December 31, 2013: | |||||||||||||
Interest rate swap contracts | $ | 11 | $ | 11 | A | ||||||||
Foreign currency forward contracts | — | — | A | ||||||||||
Currency Forward Contract Derivatives | |||||||||||||
Our currency forward contracts are valued using then-current spot and forward market data as provided by external financial institutions. The Company enters into currency forward contracts with banking institutions of only the highest tiered credit ratings and thus the counterparty credit risk associated with these contracts is not considered significant. | |||||||||||||
The Company enters into short-term currency forward contracts which are intended to offset the currency exchange gain (loss) related to the re-measurement process and are not designated as hedges of specific monetary asset balances subject to currency risks. Therefore, any changes in the fair value of these short-term currency forward contracts are recognized in earnings each accounting period. The aggregate notional amount of outstanding short-term currency forward contracts was $34 million and $86 million as of December 31, 2014 and 2013, respectively. Losses of less than $1 million were recorded for the year ended December 31, 2014, gains of $1 million were recorded for the year ended December 31, 2013, and gains of $2 million were recorded for the year ended December 31, 2012. | |||||||||||||
Additionally, beginning in the third quarter of 2014, the Company entered into currency forward contracts which are intended to offset against foreign exchange risk for certain forecasted gross receivable and payable balances. These currency forward contracts are considered highly effective based on critical terms matching and the result of de minimis testing. Therefore, the gains or losses of these hedges are deferred as a component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) and reclassified into net income in the same period during which the hedged transaction affects net income. The aggregate notional amount of outstanding currency forward contracts was $36 million as of December 31, 2014. The gains recorded were less than $1 million for the year ended December 31, 2014. | |||||||||||||
The Company’s outstanding currency forward contracts are recorded in the Consolidated Balance Sheets as either Other current assets or Other accrued expenses, depending on whether the contracts are in asset or liability positions at the end of each reporting period. Currency forward contract gains and losses are recognized in Other income and expense, net in the Consolidated Statements of Operations in the reporting period of occurrence. | |||||||||||||
Interest Rate Derivatives | |||||||||||||
In April 2013, the Company entered into interest rate swaps having an aggregate notional value of $300 million to effectively fix the rate of interest on a portion of the Company’s Term Loan B-2 until April 25, 2020. The Company funds its business operations with a combination of fixed and floating-rate debt. Therefore, the Company’s reported results from operations may be adversely impacted by rising interest rates. The Company’s interest rate risk policy seeks to minimize the long-term cost of debt, subject to a limitation of the maximum percentage of net floating-rate debt versus total debt outstanding. | |||||||||||||
While the Company’s policy does not require that it maintain a specific ratio of net floating-rate debt as a proportion of total debt outstanding, the Company uses interest rate swaps to manage the ratio of net floating-rate debt to total debt outstanding within the Company’s policy target range, thereby reducing the potential impact that interest rate variability may have on its consolidated financial results. The Company’s policy prohibits the use of interest rate derivatives to generate trading profits or to otherwise speculate on interest rate movements. | |||||||||||||
The Company has designated its interest rate swaps as cash flow hedges as described in ASC 815. At the inception of the hedge, the Company formally documents its hedge relationships and risk management objectives and strategy for undertaking the hedge. In addition, the documentation identifies the interest rate swaps as a hedge of specific interest payments on variable rate debt, with the objective to perfectly offset the variability of interest expense as related to specific floating-rate debt. The Company also specifies that the effectiveness of the interest rate swaps in mitigating interest expense variability shall be assessed using the Hypothetical Derivative Method as described in ASC 815. | |||||||||||||
The interest rate swaps are recorded in the Consolidated Balance Sheets as Other current assets or Other accrued expenses, accordingly. In compliance with ASC 815, the Company formally assesses the effectiveness of its interest rate swaps at inception and on a quarterly basis thereafter. These assessments have established that swaps have been, and are expected to continue to be, highly effective at offsetting the interest expense variability of the underlying floating rate debt and are therefore eligible for cash flow hedge accounting treatment, pursuant to ASC 815. | |||||||||||||
Changes in the fair value of derivatives designated as cash flow hedges are recorded to Other comprehensive income (loss), to the extent such cash flow hedges are effective. Amounts are reclassified from Other comprehensive income (loss) when the underlying hedged items are recognized, during the period that a hedge transaction is terminated, or whenever a portion of the hedge transaction results are deemed ineffective. The Company reclassified $2 million from Other comprehensive income (loss) into interest expense in both 2014 and 2013. There have been no gains or losses reclassified from Other comprehensive income (loss) into earnings due to hedge ineffectiveness related to any of the Company’s interest rate swap transactions, nor were there gains or losses reclassified to income due to early termination of designated cash-flow hedge transactions as of December 31, 2014 or 2013. The notional amount of interest rate swaps outstanding was $300 million as of both December 31, 2014 and 2013. |
Debt
Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Debt | 6. DEBT | ||||||||||||
Debt consists of the following: | |||||||||||||
(Dollars in millions) | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
7.75% Senior notes, due May 2021 | $ | 250 | $ | 250 | |||||||||
Term Loan B-1, due April 2016 | 175 | 199 | |||||||||||
Term Loan B-2, due April 2020 | 367 | 465 | |||||||||||
ABL revolver, due April 2018 | — | — | |||||||||||
Other debt(1) | 19 | 23 | |||||||||||
811 | 937 | ||||||||||||
Less: current portion | (19 | ) | (30 | ) | |||||||||
$ | 792 | $ | 907 | ||||||||||
-1 | Other debt primarily consists of $12 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.9 points and $7 million related to the Company’s Venezuela operations as of December 31, 2014. At December 31, 2013, $20 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.9 points and $3 million related to the Company’s China operations. | ||||||||||||
Scheduled maturities of debt for each of the next five years and thereafter are as follows: | |||||||||||||
(Dollars in millions) | Amount | ||||||||||||
Year | |||||||||||||
2015 | $ | 19 | |||||||||||
2016 | 175 | ||||||||||||
2017 | — | ||||||||||||
2018 | — | ||||||||||||
2019 | — | ||||||||||||
2020 and thereafter | 617 | ||||||||||||
Total debt | $ | 811 | |||||||||||
The fair value of debt is as follows: | |||||||||||||
Fair Value of Debt at December 31, 2014 | |||||||||||||
(Dollars in millions) | Book Value | Fair Value | Fair Value | ||||||||||
of Debt | Factor | of Debt | |||||||||||
Senior notes, due May 2021(1) | $ | 250 | 102.5 | % | $ | 256 | |||||||
Term Loan B-1, due April 2016(1) | 175 | 97.88 | % | 171 | |||||||||
Term Loan B-2, due April 2020(1) | 367 | 97 | % | 356 | |||||||||
Other debt(2) | 19 | 100 | % | 19 | |||||||||
Total fair value of debt at December 31, 2014 | $ | 802 | |||||||||||
Fair Value of Debt at December 31, 2013 | |||||||||||||
(Dollars in millions) | Book Value | Fair Value | Fair Value | ||||||||||
of Debt | Factor | of Debt | |||||||||||
Senior notes, due May 2021(1) | $ | 250 | 96.06 | % | $ | 240 | |||||||
Term Loan B-1, due April 2016(1) | 199 | 100.63 | % | 200 | |||||||||
Term Loan B-2, due April 2020(1) | 465 | 101.38 | % | 471 | |||||||||
Other debt(2) | 23 | 100 | % | 23 | |||||||||
Total fair value of debt at December 31, 2013 | $ | 934 | |||||||||||
-1 | The fair value of the long-term debt was estimated based on quoted market prices obtained through broker or pricing services and categorized within Level 2 of the hierarchy. The fair value of the Company’s debt that is publicly traded in the secondary market is classified as Level 2 and is based on current market yields obtained through broker or pricing services. | ||||||||||||
-2 | The carrying value of fixed rate short-term debt approximates fair value because of the short term nature of these instruments, and the carrying value of the Company’s current floating rate debt instruments approximates fair value because of the variable interest rates pertaining to those instruments. The fair value of debt is categorized within Level 2 of the hierarchy. | ||||||||||||
As discussed further in Note 4, in May 2014, the Company closed the sale of the Chassis group. In conjunction with the closing of the sale, cash proceeds of $149 million were received. With the proceeds and cash from operations, the Company paid down $24 million of Term Loan B-1 and $85 million of Term Loan B-2. Additionally, it made a $66 million distribution to Holdings. Holdings used all of the distribution to partially repay the note issued by Holdings to Dana Corporation (“Dana”) as part of the financing in connection with the acquisition in 2004 of substantially all of the aftermarket business operations of Dana (the “Seller Note.”) | |||||||||||||
ABL Revolver | |||||||||||||
The Company replaced the Old ABL Revolver with a new ABL Revolver on April 25, 2013. The ABL Revolver comprises a revolving credit facility of up to $175 million for borrowings available solely to the U.S. domestic borrowers, including (i) a $30 million sub-limit for letters of credit and (ii) a $15 million swingline facility. Availability under the ABL Revolver is based upon monthly (or more frequent under certain circumstances) borrowing base valuations of the Company’s eligible inventory and accounts receivable, among other things, and is reduced by certain reserves in effect from time to time. | |||||||||||||
At December 31, 2014, there were no outstanding borrowings under the ABL Revolver. The Company had an additional $72 million of availability after giving effect to $7 million in outstanding letters of credit and less than $1 million for borrowing base reserves as of December 31, 2014. | |||||||||||||
On February 4, 2014, Affinia entered into (i) the First Amendment to the Credit Agreement dated as of February 4, 2014 (the “Term Loan Amendment”), among Affinia, Holdings, JP Morgan Chase Bank, NA, as administrative agent and the lenders party thereto and (ii) the First Amendment to the ABL Credit Agreement dated as of February 4, 2014 (the “ABL Amendment”), among Affinia, Holdings, certain subsidiaries party thereto, the lenders party thereto and Bank of America, N.A, as administrative agent. The Term Loan Amendment and the ABL Amendment are referred to herein collectively as the “Amendments.” | |||||||||||||
The Amendments, among other things, amend certain negative covenants to permit the sale of the Chassis group and to permit certain restricted payments and loans and advances to Holdings. The Term Loan Amendment also amends certain prepayment terms in connection with the Chassis sale. | |||||||||||||
Maturity. The ABL Revolver is scheduled to mature on April 25, 2018. | |||||||||||||
Guarantees and collateral. The indebtedness, obligations and liabilities under the ABL Revolver are unconditionally guaranteed jointly and severally on a senior secured basis by the Company and certain of its current and future U.S. subsidiaries, and are secured, subject to permitted liens and other exceptions and exclusions, by a first-priority lien on accounts receivable, inventory, cash, deposit accounts, securities accounts and proceeds of the foregoing and certain assets related thereto and a second-priority lien on the collateral that secures the Term Loans on a first-priority basis. | |||||||||||||
Mandatory prepayments. If at any time the outstanding borrowings under the ABL Revolver (including outstanding letters of credit and swingline loans) exceed the lesser of (i) the borrowing base as in effect at such time and (ii) the aggregate revolving commitments as in effect at such time, the borrowers will be required to prepay an amount equal to such excess and/or cash collateralize outstanding letters of credit. | |||||||||||||
Voluntary prepayments. Subject to certain conditions, the ABL Revolver allows the borrowers to voluntarily reduce the amount of the revolving commitments and to prepay the loans without premium or penalty other than customary breakage costs for LIBOR rate contracts. | |||||||||||||
Interest rates and fees. Outstanding borrowings under the ABL Revolver accrue interest at an annual rate of interest equal to (i) a base rate plus the applicable spread, as set forth below or (ii) a LIBOR rate plus the applicable spread, as set forth below. Swingline loans bear interest at a base rate plus the applicable spread. The Company will pay a commission on letters of credit issued under the New ABL Revolver at a rate equal to the applicable spread for loans based upon the LIBOR rate. | |||||||||||||
Level | Average | Base Rate Loans and | LIBOR Loans | ||||||||||
Aggregate | Swingline Loans | ||||||||||||
Availability | |||||||||||||
I | <$ 50,000,000 | 1 | % | 2 | % | ||||||||
II | >$ 50,000,000 | 0.75 | % | 1.75 | % | ||||||||
but < | |||||||||||||
$ 100,000,000 | |||||||||||||
III | >$ 100,000,000 | 0.5 | % | 1.5 | % | ||||||||
The Company will pay certain fees with respect to the ABL Revolver, including (i) an unused commitment fee on the undrawn portion of the credit facility of 0.25% per annum in the event that more than 50% of the commitments (excluding swingline loans) under the credit facility are utilized, and 0.375% per annum in the event that less than or equal to 50% of the commitments (excluding swingline loans) under the credit facility are utilized and (ii) customary annual administration fees and fronting fees in respect of letters of credit equal to 0.125% per annum on the stated amount of each letter of credit outstanding during each fiscal quarter. During an event of default, all loans and other obligations under the ABL Revolver may bear interest at a rate 2.00% in excess of the otherwise applicable rate of interest. | |||||||||||||
Cash Dominion. Commencing on the day that an event of default occurs or availability under the ABL Revolver is less than the greater of 12.5% of the total borrowing base and $12.5 million and continuing until no event of default has existed and availability has been greater than such thresholds at all times for 60 consecutive days, amounts in the Company’s deposit accounts and the deposit accounts of the guarantors (other than certain excluded accounts) will be transferred daily into a blocked account held by the administrative agent and applied to reduce the outstanding amounts under the ABL Revolver. | |||||||||||||
Covenants. The ABL Revolver contains negative covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to: create liens and encumbrances; incur additional indebtedness; merge, dissolve, liquidate or consolidate; make acquisitions, investments, advances or loans; dispose of or transfer assets; pay dividends or make other payments in respect of their capital stock; amend certain material governance documents; change the nature of the business of the borrowers and their subsidiaries; redeem or repurchase capital stock or prepay, redeem or repurchase certain debt; engage in certain transactions with affiliates; change the borrowers’ fiscal periods; and enter into certain restrictive agreements. The ABL Revolver also contains certain customary affirmative covenants and events of default, including a change of control. | |||||||||||||
In addition, commencing on the day that an event of default occurs or availability under the ABL Revolver is less than the greater of 10% of the total borrowing base and $10 million and continuing until no event of default has existed and availability under the ABL Revolver has been greater than such thresholds at all times, in each case, for 30 consecutive days, the Company would be required to maintain a fixed charge coverage ratio of at least 1.0x measured for the last 12-month period. The fixed charge coverage ratio was 1.90 as of December 31, 2014. If none of the covenant triggers have occurred, the impact of falling below the fixed charge coverage ratio would not be a default but instead would limit the Company’s ability to pursue certain operational or financial transactions (e.g. acquisitions). | |||||||||||||
Indenture | |||||||||||||
Senior Notes. On April 25, 2013, Affinia Group Inc. issued $250 million of Senior Notes as part of the refinancing. The Senior Notes accrue interest at the rate of 7.75% per annum, payable semi-annually on May 1 and November 1 of each year. The Senior Notes will mature on May 1, 2021. The terms of the Indenture provide that, among other things, the Senior Notes rank equally in right of payment to all of the Company’s and all of Affinia Group Inc.’s 100% owned current and future domestic subsidiaries (the “Guarantors”) existing and future senior debt and senior in right of payment to all of the Company’s and Guarantors’ existing and future subordinated debt. The Senior Notes are structurally subordinated to all of the liabilities and obligations of the Company’s subsidiaries that do not guarantee the Senior Notes. The Senior Notes are effectively junior in right of payment to all of the Company’s and the Guarantors’ secured indebtedness, including the Term Loans and the ABL Revolver, to the extent of the value of the collateral securing such indebtedness. The outstanding balance of the Senior Notes at December 31, 2014 was $250 million. | |||||||||||||
Guarantees. The Guarantors guarantee the Company’s obligations under the Notes on a senior unsecured basis. | |||||||||||||
Interest Rate. Interest on the Notes accrues at a rate of 7.75% per annum. Interest on the Notes is payable in cash semiannually in arrears on May 1 and November 1 of each year, commencing on November 1, 2013. | |||||||||||||
Other Covenants. The Indenture contains affirmative and negative covenants that, among other things, limit or restrict the Company’s ability (as well as those of the Company’s subsidiaries) to: incur additional debt; provide guarantees and issue mandatorily redeemable preferred stock; pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments including the prepayment of certain indebtedness; enter into agreements that restrict distributions from restricted subsidiaries; sell or otherwise dispose of assets, including capital stock of restricted subsidiaries; enter into transactions with affiliates; create or incur liens; and merge, consolidate or sell substantially all of its assets. | |||||||||||||
Events of Default. The Indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the Indenture, payment defaults or acceleration of other indebtedness, failure to pay certain judgments and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the Trustee or holders of at least 25% in principal amount of the then outstanding Notes may declare the principal, premium, if any, interest and other monetary obligations on all the Notes to be due and payable immediately. | |||||||||||||
Term Loan Facility | |||||||||||||
On April 25, 2013, the Company entered into (i) a Term Loan B-1 in an aggregate principal amount of $200 million and (ii) a Term Loan B-2 in an aggregate principal amount of $470 million. The Term Loan B-1 was offered at a price of 99.75%, of their face value, resulting in approximately $199 million of net proceeds for the Term Loan B-1. The Term Loan B-2 was offered at a price of 99.50%, of their face value, resulting in approximately $468 million of net proceeds for the Term Loan B-2. The $1 million and $2 million original issue discount for the Term Loan B-1 and Term Loan B-2, respectively, will be amortized based on the effective interest rate method and included in interest expense until the Term Loans mature. The Term Loan B-1 amortizes in quarterly installments in an amount equal to 1.00% per annum, with the balance due on April 25, 2016. The Term Loan B-2 amortizes in quarterly installments in an amount equal to 1.00% per annum, with the balance due on April 25, 2020. As of December 31, 2014, $175 million principal amount of Term Loan B-1 was outstanding, net of a $1 million issue discount which is being amortized until the Term Loan B-1 matures and $367 million principal amount of Term Loan B-2 was outstanding, net of a $2 million issue discount which is being amortized until the Term Loan B-2 matures. | |||||||||||||
Guarantees and collateral. The indebtedness, obligations and liabilities under the Term Loan Facility are unconditionally guaranteed jointly and severally on a senior secured basis by the Company and certain of its current and future U.S. subsidiaries, and are secured, subject to permitted liens and other exceptions and exclusions, by a first-priority lien on substantially all tangible and intangible assets of the borrower and each guarantor (including (i) a perfected pledge of all of the capital stock of the borrower and each direct, wholly-owned material subsidiary held by the borrower or any guarantor (subject to certain limitations with respect to foreign subsidiaries) and (ii) perfected security interests in, and mortgages on, equipment, general intangibles, investment property, intellectual property, material fee-owned real property, intercompany notes and proceeds of the foregoing) except for certain excluded assets and the collateral securing the ABL Revolver on a first priority basis, and a second-priority lien on the collateral securing the ABL Revolver on a first-priority basis. | |||||||||||||
Mandatory prepayments. The Term Loan Facility requires the following amounts to be applied to prepay the Term Loans, subject to certain thresholds, exceptions and reinvestment rights: 100% of the net proceeds from the incurrence of indebtedness (other than permitted indebtedness), 100% of the net proceeds of certain asset sales (including insurance or condemnation proceeds), other than the collateral securing the ABL Revolver on a first-priority basis, and 50% of excess cash flow with stepdowns to 25% and 0% based on certain leverage targets. | |||||||||||||
Mandatory prepayments will be allocated ratably between Term Loan B-1 and Term Loan B-2 and, within each, will be applied to reduce remaining amortization payments in the direct order of maturity for the immediately succeeding eight quarters and, thereafter, pro rata. | |||||||||||||
Voluntary Prepayments. The Company may voluntarily prepay outstanding Term Loans in whole or in part at any time without premium or penalty (other than a 1.00% premium payable until, in the case of the Term Loan B-1, six months following April 25, 2013 and, in the case of the Term Loan B-2, one year following April 25, 2013, on (i) the amount of loans prepaid or refinanced with proceeds of long-term bank debt financing or any other financing similar to such borrowings having a lower effective yield or (ii) the amount of loans the terms of which are amended to the same effect), subject to payment of customary breakage costs in the case of LIBOR rate loans. Optional prepayments of the Term Loans will be applied to the remaining installments thereof at the direction of the Company. | |||||||||||||
Interest Rates. Outstanding borrowings under the Term Loan Facility accrue interest at an annual rate of interest equal to (i) a base rate plus the applicable spread or (ii) a LIBOR rate plus the applicable spread. The applicable margin for borrowings under the Term Loan B-1 is 1.75% with respect to base rate borrowings and 2.75% with respect to LIBOR rate borrowings, and the applicable margin for borrowing under the Term Loan B-2 is 2.50% with respect to base rate borrowings and 3.50% with respect to LIBOR rate borrowings. The LIBOR rate is subject to a floor of 0.75% per annum with respect to Term Loan B-1 and 1.25% per annum with respect to Term Loan B-2. Overdue principal with respect to the Term Loans will bear interest at a rate 2.00% in excess of the otherwise applicable rate of interest and other overdue amounts with respect to the Term Loans will bear interest at a rate of 2.00% in excess of the rate applicable to base rate borrowings. | |||||||||||||
Covenants. The Term Loan Facility contains negative covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to create liens and encumbrances; incur additional indebtedness; merge, dissolve, liquidate or consolidate; make acquisitions, investments, advances or loans; dispose of or transfer assets; pay dividends or make other payments in respect of their capital stock; amend certain material governance documents; change the nature of the business of the borrower and its subsidiaries; redeem or repurchase capital stock or prepay, redeem or repurchase certain debt; engage in certain transactions with affiliates; change the borrower’s fiscal periods; and enter into certain restrictive agreements. The Term Loan Facility also contains certain customary affirmative covenants and events of default, including a change of control. | |||||||||||||
Deferred Financing | |||||||||||||
During the second quarter of 2013, Affinia recorded a write-off of $5 million to interest expense for unamortized deferred financing costs associated with the redemption of its Secured Notes and Subordinated Notes. Affinia also recorded during the second quarter of 2013 a write-off of $3 million to interest expense for the replacement of its Old ABL Revolver with a new ABL Revolver. In addition, Affinia recorded $14 million in total deferred financing costs related to the issuance of its Senior Notes and Term Loans as part of the refinancing and $1 million in total deferred financing costs associated with the ABL Revolver. The unamortized deferred financing costs will be charged to interest expense over the next eight years for the Senior Notes, seven years for Term Loan B-2, five years for the ABL Revolver and three years for Term Loan B-1. | |||||||||||||
The following table summarizes the deferred financing activity for the Company: | |||||||||||||
(Dollars in millions) | |||||||||||||
Balance at December 31, 2012 | $ | 15 | |||||||||||
Amortization | (4 | ) | |||||||||||
Write-off of unamortized deferred financing costs | (8 | ) | |||||||||||
Deferred financing costs | 15 | ||||||||||||
Balance at December 31, 2013 | $ | 18 | |||||||||||
Amortization | (4 | ) | |||||||||||
Write-off of unamortized deferred financing costs | (1 | ) | |||||||||||
Deferred financing costs | 1 | ||||||||||||
Balance at December 31, 2014 | $ | 14 | |||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 7. INVENTORIES | ||||||||
Inventories are valued at the lower of cost or market. Cost is determined on the FIFO method of inventory costing for all domestic inventories and at the Company’s Poland operations or average cost basis for other non-U.S. inventories. Inventories are reduced by an allowance for slow-moving and obsolete inventories based on management’s review of on-hand inventories compared to historical and estimated future sales and usage. A summary of inventories, net is provided in the table below: | |||||||||
(Dollars in millions) | At December 31, | At December 31, | |||||||
2014 | 2013(1) | ||||||||
Raw materials | $ | 63 | $ | 67 | |||||
Work-in-process | 17 | 17 | |||||||
Finished goods | 134 | 137 | |||||||
$ | 214 | $ | 221 | ||||||
-1 | The inventory as of December 31, 2013 excludes $74 million of inventory in the Company’s Chassis group, which is classified in current assets of discontinued operations. | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES | ||||
At December 31, 2014, the Company had purchase commitments for property, plant and equipment of approximately $3 million. | |||||
The Company had future minimum rental commitments under non-cancelable operating leases in continuing operations of $40 million at December 31, 2014, with future rental payments of: | |||||
(Dollars in millions) | Operating | ||||
Leases | |||||
2015 | $ | 9 | |||
2016 | 7 | ||||
2017 | 6 | ||||
2018 | 5 | ||||
2019 | 5 | ||||
Thereafter | 8 | ||||
Total | $ | 40 | |||
The leases do not contain restrictions on future borrowings. There are no significant lease escalation clauses or purchase options. Rent expense from continuing operations was $11 million, $10 million and $9 million in 2014, 2013 and 2012, respectively. | |||||
Various claims, lawsuits and administrative proceedings are pending or threatened against the Company and its subsidiaries, arising from the ordinary course of business with respect to commercial, intellectual property, product liability and environmental matters. Affinia believes that the ultimate resolution of the foregoing matters will not have a material effect on the Company’s financial condition, results of operations or liquidity. | |||||
The Company has various accruals for civil liability, including product liability, and other costs. If there is a range of equally probable outcomes, Affinia accrues at the lower end of the range. The Company had $2 million and $13 million accrued as of December 31, 2014 and December 31, 2013, respectively. These amounts are reflected in “other accrued expenses” within the Consolidated Balance Sheets. The decrease in the amount accrued is due to a payment of $11 million made during the first quarter of 2014 in full settlement of the Neovia Logistics Services (U.K.) Limited claim. On January 28, 2013, Walker Morris, counsel for Neovia (formerly known as Caterpillar Logistics Services (U.K.) Limited) notified Affinia that Quinton Hazell Automotive Limited (“QHAL”) intended to appoint administrators (comparable to a bankruptcy filing in the United States) and that Neovia may pursue a claim against Affinia for liabilities arising out of a Logistics Services Agreement dated May 5, 2006 among Neovia, QHAL and Affinia (the “LSA”). In connection with the Company’s prior sale of QHAL and its related companies to Klarius Group Ltd. (“KGL”), Affinia assigned the LSA to KGL, KGL agreed to indemnify Affinia against any liability under the LSA and the other companies in the QHAL group agreed to provide a guarantee to Affinia against these liabilities. KGL and QHAL have both appointed administrators. By letter dated February 15, 2013, Neovia, through its counsel Walker Morris, notified the Company that Neovia is asserting a claim against Affinia for liabilities arising under the LSA, including asserted unpaid invoices totaling 5.7 million pounds. On March 28, 2013, Affinia was served with a demand for arbitration by Neovia. In the first quarter of 2014, Affinia settled the claim. The Company had accrued $10 million during 2013 associated with this claim. There are no recoveries expected from third parties associated with outstanding or settled claims. | |||||
In addition, the Company has various other claims that are reasonably possible of occurrence for which Affinia’s maximum exposure to loss is estimated at $15 million. There are currently no reserves associated with these claims. | |||||
As previously disclosed, the Company has conducted a review of certain allegations arising in connection with business operations involving its subsidiaries in Poland and Ukraine. The allegations raise issues involving potential improper payments in connection with governmental approvals, permits, or other regulatory areas and possible conflicts of interest. The Company’s review, which the Company considers to be substantially complete, has been supervised by the Audit Committee of Affinia’s Board of Directors and has been conducted with the assistance of outside professionals. Affinia voluntarily self-reported on these matters to the U.S. Department of Justice and the U.S. Securities and Exchange Commission and has cooperated fully with the government. No determination may yet be made as to whether, in connection with the circumstances surrounding the review, Affinia may become subject to any fines, penalties and/or other charges imposed by any governmental authority, or any other damages or costs that may arise in connection with those circumstances. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 9. INCOME TAXES | ||||||||||||
The components of the income tax provision (benefit) from continuing operations are as follows: | |||||||||||||
(Dollars in millions) | Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
U.S. federal | $ | — | $ | — | $ | — | |||||||
U.S. state and local | — | — | — | ||||||||||
Non-United States | 16 | 24 | 19 | ||||||||||
Total current | 16 | 24 | 19 | ||||||||||
Deferred: | |||||||||||||
U.S. federal and state | 15 | (8 | ) | 26 | |||||||||
Non-United States | (12 | ) | 6 | — | |||||||||
Total deferred | 3 | (2 | ) | 26 | |||||||||
Income tax provision | $ | 19 | $ | 22 | $ | 45 | |||||||
The income tax provision was calculated based upon the following components of income from continuing operations before income tax provision, equity in income, net of tax, and noncontrolling interest: | |||||||||||||
(Dollars in millions) | Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (22 | ) | (75 | ) | $ | (27 | ) | |||||
Non-United States | 94 | 104 | 86 | ||||||||||
Income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | $ | 72 | $ | 29 | $ | 59 | |||||||
Deferred tax assets (liabilities) consisted of the following: | |||||||||||||
(Dollars in millions) | At December 31, | At December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating and other loss carryforwards | $ | 129 | $ | 130 | |||||||||
Inventory reserves | 4 | 8 | |||||||||||
Expense accruals | 28 | 41 | |||||||||||
Depreciation and amortization | 1 | — | |||||||||||
Other | 6 | 7 | |||||||||||
Subtotal | 168 | 186 | |||||||||||
Valuation allowance | (26 | ) | (31 | ) | |||||||||
Deferred tax assets | 142 | 155 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | — | 11 | |||||||||||
Foreign earnings | 24 | 23 | |||||||||||
Other liabilities | 1 | 4 | |||||||||||
Deferred tax liabilities | 25 | 38 | |||||||||||
Net deferred tax assets | $ | 117 | $ | 117 | |||||||||
Balance Sheet Presentation: | |||||||||||||
Current deferred taxes | $ | 21 | $ | 39 | |||||||||
Deferred income taxes | 97 | 80 | |||||||||||
Deferred employee benefits and other noncurrent liabilities | (1 | ) | (2 | ) | |||||||||
Net deferred tax assets | $ | 117 | $ | 117 | |||||||||
Valuation allowances are provided for deferred tax assets whenever the realization of the assets is not deemed to meet a more likely than not standard. Accordingly, valuation allowances have been provided for net operating losses and other loss carryforwards in certain non-U.S. countries and U.S. states. In addition there are valuation allowances provided on certain U.S. credit carryforwards. U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. This amount becomes taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of such temporary differences totaled $51 million at December 31, 2014. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable. | |||||||||||||
The effective income tax rate differs from the U.S. federal income tax rate for the following reasons: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 1, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increases (reductions) resulting from: | |||||||||||||
State and local income taxes, net of federal income tax benefit | -1.2 | -5.5 | 1.1 | ||||||||||
Valuation allowance | 1.4 | 6.2 | -1 | ||||||||||
Non-U.S. income | -15.2 | -40.8 | -14.3 | ||||||||||
Foreign Restructuring | -14.1 | — | — | ||||||||||
U.S. Permanent Differences(1) | 15.8 | 66.7 | 45 | ||||||||||
Unrecognized Tax Benefits(2) | -9.5 | 23.6 | — | ||||||||||
Unremitted Earnings | 13.8 | -8.3 | 11.5 | ||||||||||
Miscellaneous items | — | — | -0.8 | ||||||||||
Effective income tax rate | 26 | % | 76.9 | % | 76.5 | % | |||||||
-1 | The U.S. Permanent Differences affecting the tax rate were primarily the result of deemed distributions from foreign subsidiaries. | ||||||||||||
-2 | The 2013 tax rate was negatively impacted by the recognition of an uncertain tax position resulting from an unfavorable ruling impacting the Company’s international operations. | ||||||||||||
At the end of 2014, federal domestic net operating loss carryforwards were $304 million. Of these, $8 million expire in 2024, $12 million expire in 2025, $36 million expire in 2026, $33 million expire in 2027, $74 million expire in 2028, $60 million expire in 2029, $31 million expire in 2030, $20 million expire in 2031, $10 million expire in 2032 and $20 million expire in 2034. At the end of 2014, state domestic net operating loss carryforwards were estimated to be $245 million, the majority of which expire between 2024 and 2034. At the end of 2014, foreign net operating loss carryforwards were $13 million and expire as follows: $1 million in 2015, $4 million in 2016, $3 million in 2017, $2 million in 2018 and $1 million in 2019, $1 million in 2021 and $1 million with no expiration date. Realization of the tax benefits associated with loss carryforwards is dependent on generating sufficient taxable income prior to their expiration. | |||||||||||||
The following table summarizes the activity related to the Company’s unrecognized tax benefits: | |||||||||||||
(Dollars in millions) | |||||||||||||
Balance at January 1, 2012 | $ | 2 | |||||||||||
Increases to tax positions | — | ||||||||||||
Decreases to tax positions | (1 | ) | |||||||||||
Balance at January 1, 2013 | $ | 1 | |||||||||||
Increases to tax positions | 7 | ||||||||||||
Decreases to tax positions | — | ||||||||||||
Balance at January 1, 2014 | $ | 8 | |||||||||||
Increases to tax positions | — | ||||||||||||
Decreases to tax positions | (7 | ) | |||||||||||
Balance at December 31, 2014 | $ | 1 | |||||||||||
Included in the balance of unrecognized tax benefits at December 31, 2014, is $1 million of tax benefits that, if recognized, would affect the effective tax rate. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties as part of the income tax provision. As of December 31, 2014, the Company’s accrual for interest and penalties is less than $1 million, and its accrual for income tax expense is $1 million. The decrease in 2014 is attributable to a recent ruling impacting the Company’s international operations. | |||||||||||||
The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. For jurisdictions in which the Company transacts significant business, tax years ending December 31, 2004 and later remain subject to examination by tax authorities. The Company does not anticipate any material change in the total amount of unrecognized tax benefits to occur within the next twelve months. |
Accounts_Receivable_Factoring
Accounts Receivable Factoring | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Accounts Receivable Factoring | 10. ACCOUNTS RECEIVABLE FACTORING | ||||||||
Affinia has agreements with third party financial institutions to factor certain receivables on a non-recourse basis. The terms of the factoring arrangements provide for the factoring of certain U.S. Dollar-denominated or Canadian Dollar-denominated receivables, which are purchased at the face value amount of the receivable discounted at the annual rate of LIBOR plus a spread on the purchase date. The amount factored is not contractually defined by the factoring arrangements and Affinia’s use varies each month based on the amount of underlying receivables and the cash flow needs of the Company. | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
(Dollars in millions) | 2014 | 2013(1) | |||||||
Gross accounts receivable factored | $ | 467 | $ | 541 | |||||
Expenses associated with factoring of receivables | 4 | 4 | |||||||
-1 | Includes amounts related to the Chassis group, which are reflected as Income from discontinued operations, net of tax in the Consolidated Statements of Operations. | ||||||||
Accounts receivable factored by Affinia are accounted for as a sale and removed from the balance sheet at the time of factoring, with the cost associated with the factoring program presented in Other income and expense, net in the Consolidated Statement of Operations. |
Goodwill
Goodwill | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | 11. GOODWILL | ||||
Goodwill as of December 31, 2014 was $3 million, which relates to the Filtration segment. At December 31, 2013, Affinia had $22 million of goodwill related to its Chassis group, which is recorded in current assets of discontinued operations. | |||||
In accordance with ASC Topic 805-740, the tax benefit for the excess of tax-deductible goodwill over the reported amount of goodwill was applied to first reduce the goodwill related to the initial acquisition in 2004. The tax benefit for the excess of tax deductible goodwill reduced reported goodwill by $4 million during 2012. The reported amount of goodwill for the 2004 acquisition was reduced to zero, and the remaining tax benefit will reduce the basis of intangible assets purchased in the 2004 acquisition. Any remaining tax benefit reduces the income tax provision. For further information see Note 12. Other Intangible Assets. | |||||
The following table summarizes Affinia’s goodwill activity, which is related to its Filtration segment and its Chassis group, during 2013 and 2014: | |||||
(Dollars in millions) | |||||
Balance at December 31, 2012 | $ | 24 | |||
Goodwill related to Chassis group reclassified to discontinued operations | (22 | ) | |||
Acquisition | 1 | ||||
Balance at December 31, 2013 | $ | 3 | |||
Balance at December 31, 2014 | $ | 3 | |||
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Other Intangible Assets | 12. OTHER INTANGIBLE ASSETS | ||||||||||||||||
As of December 31, 2014 and 2013, the Affinia’s other intangible assets primarily consisted of trade names, customer relationships, and developed technology. Affinia recorded less than $1 million, $3 million and $6 million of intangible asset amortization in 2014, 2013 and 2012, respectively, which includes $1 million and $2 million for 2013 and 2012, respectively, related to discontinued operations. The discontinued operations for the Chassis group and Brake North America and Asia group ceased amortization in 2013 and at the end of 2012, respectively, because the groups were classified in current assets of discontinued operations. The Company anticipates amortization of less than $1 million for 2015 through 2020 on a continuing basis. Amortization expense is calculated on a straight line basis over 5 to 20 years. | |||||||||||||||||
For the goodwill and intangible assets associated with the 2004 acquisition, in accordance with ASC Topic 805-740, the tax benefit for the excess of tax-deductible goodwill over the reported amount of goodwill was applied to first reduce the goodwill related to the acquisition to zero. The reported amount of goodwill for the 2004 acquisition was reduced to zero in 2013 and the remaining tax benefit will be applied to reduce the basis of intangible assets purchased in the 2004 acquisition. The tax benefit for the excess of tax deductible goodwill reduced intangible assets by approximately $6 million and $4 million during 2014 and 2013, respectively. | |||||||||||||||||
Trade names are tested for impairment annually as of December 31 of each year by comparing their fair value to their carrying values. The fair value for each trade name was established based upon a royalty savings approach. Affinia determined that there were impairments of other intangible assets of less than $1 million in 2013. A rollforward of the other intangibles and trade names for 2013 and 2014 is shown below: | |||||||||||||||||
(Dollars in millions) | Trade | Customer | Developed | Total | |||||||||||||
Names | Relationships | Technology/ | |||||||||||||||
Other | |||||||||||||||||
Balance at December 31, 2012 | $ | 36 | $ | 43 | $ | 9 | $ | 88 | |||||||||
Amortization | — | (2 | ) | (1 | ) | (3 | ) | ||||||||||
Tax benefit reductions | (1 | ) | (2 | ) | (1 | ) | (4 | ) | |||||||||
Additions | — | 1 | — | 1 | |||||||||||||
Intangibles related to the Chassis group reclassified to current assets of discontinued operations | (5 | ) | (13 | ) | (4 | ) | (22 | ) | |||||||||
Balance at December 31, 2013 | 30 | 27 | 3 | 60 | |||||||||||||
Amortization | — | — | — | — | |||||||||||||
Tax benefit reductions | (2 | ) | (4 | ) | — | (6 | ) | ||||||||||
Balance at December 31, 2014 | $ | 28 | $ | 23 | $ | 3 | $ | 54 | |||||||||
Accumulated amortization for the intangibles was $42 million as of December 31, 2014 and 2013. The weighted average amortization period by class of intangible was the following: 19 years for customer relationships and 18 years for developed technology and other intangibles. |
Stock_Incentive_Plan
Stock Incentive Plan | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock Incentive Plan | 13. STOCK INCENTIVE PLAN | ||||||||
On July 20, 2005, Holdings adopted the Affinia Group Holdings Inc. 2005 Stock Incentive Plan, (the “2005 Stock Plan” or the “Plan”). The 2005 Stock Plan permits the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units (“RSUs”) and other stock-based awards to employees, directors or consultants of Holdings and its affiliates. A maximum of 350,000 shares of Holdings common stock may be subject to award under the 2005 Stock Plan, as amended. The number of shares issued or reserved pursuant to the 2005 Stock Plan (or pursuant to outstanding awards) is subject to adjustment as a result of mergers, consolidations, reorganizations, stock splits, stock dividends and other dilutive changes in the common stock. Shares of common stock covered by awards that terminate or lapse and shares delivered by a participant or withheld to pay the minimum statutory withholding rate, in each case, will subsequently be available for grant under the 2005 Stock Plan. | |||||||||
Administration. The 2005 Stock Plan is administered by the Compensation Committee (the “Committee”) of Holdings’ Board of Directors. The Committee has authority to establish the terms and conditions of any award, as well as to waive any such terms and conditions at any time (including, without limitation, accelerating or waiving any vesting conditions or payment dates). The Committee is authorized to interpret the 2005 Stock Plan, to establish, amend and rescind any rules and regulations relating to the Plan and to make any other determinations that it, in good faith, deems necessary or desirable for the administration of the Plan and may delegate such authority as it deems appropriate. The Committee may correct any defect or supply an omission or reconcile any inconsistency in the 2005 Stock Plan in the manner and to the extent the Committee deems necessary or desirable and any decision of the committee in the interpretation and administration of the Plan shall lie within its sole and absolute good faith discretion and shall be final, conclusive and binding on all parties concerned. | |||||||||
Options. The Committee determines the option price for each option; however, the stock options must have an exercise price that is at least equal to the fair market value of the common stock on the grant date. An option holder may exercise an option by written notice and payment of the option price (i) in cash or its equivalent, (ii) by the surrender of a number of shares of common stock already owned by the option holder for at least six months (or such other period established by the committee) with a fair market value equal to the exercise price, (iii) if there is a public market for the shares, subject to rules established by the committee, through the delivery of irrevocable instructions to a broker to sell shares obtained upon the exercise of the option and to deliver to Holdings an amount out of the proceeds of the sale equal to the aggregate option price for the shares being purchased or (iv) by another method approved by the committee. | |||||||||
Stock Appreciation Rights. The Committee may grant stock appreciation rights independent of or in connection with an option. The exercise price per share of a stock appreciation right shall be an amount determined by the Committee. Generally, each stock appreciation right shall entitle a participant upon exercise to an amount equal to (i) the excess of (1) the fair market value on the exercise date of one share of common stock over (2) the exercise price, multiplied by (ii) the number of shares of common stock covered by the stock appreciation right. Payment shall be made in common stock or in cash, or partly in common stock and partly in cash, as determined by the Committee. | |||||||||
Other Stock-Based Awards. The Committee may grant awards of RSU rights to purchase stock, restricted stock and other awards that are valued in whole or in part by reference to, or are otherwise based on the fair market value of, shares of common stock. The other stock-based awards will be subject to the terms and conditions established by the Committee. | |||||||||
Transferability. Unless otherwise determined by the committee, awards granted under the 2005 Stock Plan are not transferable other than by will or by the laws of descent and distribution. | |||||||||
Change of Control. In the event of a change of control (as defined in the 2005 Stock Plan), the Committee may provide for (i) the termination of an award upon the consummation of the change of control, but only if the award has vested and been paid out or the participant has been permitted to exercise an option in full for a period of not less than 30 days prior to the change of control, (ii) the acceleration of all or any portion of an award, (iii) payment in exchange for the cancellation of an award and/or (iv) the issuance of substitute awards that would substantially preserve the terms of any awards. | |||||||||
Amendment and Termination. Holdings’ Board of Directors may amend, alter or discontinue the 2005 Stock Plan in any respect at any time, but no amendment may diminish any of the rights of a participant under any awards previously granted, without his or her consent. | |||||||||
Management Stockholders Agreement. All shares issued under the plan will be subject to a management stockholders agreement or a director stockholders agreement, as applicable. | |||||||||
Restrictive Covenant Agreement. Unless otherwise determined by Holdings’ Board of Directors, all award recipients will be obligated to sign the standard Confidentiality, Non-Competition and Proprietary Information Agreement which includes restrictive covenants regarding confidentiality, proprietary information and a one year period restricting competition and solicitation of the Company’s clients, customers or employees. In the event a participant breaches these restrictive covenants, any exercise of, or payment or delivery pursuant to, an award may be rescinded by the committee in its discretion in which event the participant may be required to pay to the Company the amount of any gain realized in connection with, or as a result of, the rescinded exercise, payment or delivery. | |||||||||
2005 Stock Plan | |||||||||
On July 20, 2005, Holdings adopted the 2005 Stock Plan with a maximum of 227,000 shares of common stock subject to awards. On August 25, 2010, Holdings increased the number of shares of common stock subject to awards from 227,000 to 300,000. On December 2, 2010, Holdings increased the number of shares of common stock subject to awards from 300,000 to 350,000. | |||||||||
A table of the 2005 Stock Plan balances for the RSUs, stock options, deferred compensation shares and stock awards is summarized below. | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Restricted stock units | 185,365 | 205,508 | |||||||
Stock options | 22,568 | 26,355 | |||||||
Deferred compensation shares | 28,964 | 37,744 | |||||||
Stock award | 163 | 163 | |||||||
Shares available to award | 112,940 | 80,230 | |||||||
Number of shares of common stock subject to awards | 350,000 | 350,000 | |||||||
Stock Options | |||||||||
As of December 31, 2014, 22,568 stock options had been awarded, with 19,568 vested stock options still outstanding. Pursuant to the terms of the 2005 Stock Plan, each option expires on August 1, 2015. The exercise price was $100 per share, but was reduced to $62.87 per share in 2013. | |||||||||
Stock options are accounted for under the fair value method of accounting using a Black-Scholes model to measure stock-based compensation expense at the date of grant. The fair value of the stock option grants is expensed over the vesting period. The Company reduces the overall compensation expense by a turnover rate consistent with historical trends. There were no stock options granted or stock-based compensation expense recognized during the years ended December 31, 2012, 2013 or 2014. | |||||||||
A rollforward of outstanding stock options for the years ended December 31, 2012, 2013 and 2014 is as follows: | |||||||||
Options | |||||||||
Outstanding at January 1, 2012 | 26,860 | ||||||||
Forfeited/expired | (4,845 | ) | |||||||
Outstanding at December 31, 2012 | 23,835 | ||||||||
Forfeited/expired | (480 | ) | |||||||
Outstanding at December 31, 2013 | 23,355 | ||||||||
Forfeited/expired | (3,787 | ) | |||||||
Outstanding at December 31, 2014 | 19,568 | ||||||||
Restricted Stock Units | |||||||||
The RSUs are governed by the 2005 Stock Plan, with the terms and conditions of vesting established by the Restricted Stock Unit Award Agreement. | |||||||||
In November 2014, the Compensation Committee of Holdings Board of Directors awarded 54,009 new awards and approved the modification of certain outstanding RSU awards. At the time of modification, there were 201,977 RSUs outstanding, of which 117,231 were subject to modification. In connection with the award modification, the previously issued RSUs were cancelled and, concurrently, new RSU awards were granted to each holder, with each holder receiving the same number of awards held immediately prior to the cancellation of the previous awards. The remaining 84,746 RSUs were not modified and remained outstanding under the same terms and conditions in effect prior to November 2014. | |||||||||
Prior to the modification and new awards, all but 10,593 of the then outstanding RSUs were subject to vesting provisions that were entirely performance and market based. Pursuant to the vesting conditions of the pre-modification awards, the RSUs would vest if (i) the RSU holder remains employed with Holdings on the date that either of the following vesting conditions occurs and (ii) either of the following vesting conditions occurs on or prior to the date on which Cypress ceases to hold any remaining Holdings common stock: | |||||||||
• | Cypress Scenario—Cypress has received aggregate transaction proceeds in cash or marketable securities (not subject to escrow, lock-up, trading restrictions or claw-back) with respect to the disposition of more than 50% of its common equity interests in Holdings in an amount that represents a per-share equivalent value that is greater than or equal to two times the average per share price paid by Cypress for its aggregate common equity investment in Holdings; or | ||||||||
• | IPO Scenario—Holdings’ common stock trades on a public stock exchange at an average closing price of $225 (as adjusted for stock splits) over a 60 consecutive trading day period. | ||||||||
Since the original issue date, the Brake North America and Asia group was distributed on November 2012 and a dividend recapitalization transaction was undertaken in April 2013. These two actions had an impact on the calculation of the overall return to the Holdings’ shareholders. In December 2013, the Company’s Board of Directors approved reducing the Cypress Scenario and IPO Scenario vesting points as a result of the aforementioned actions. Accordingly, the vesting points were reduced from $225 to $159.30 under the IPO Scenario and from $200 to $141.60 under the Cypress Scenario. | |||||||||
Under the terms of the November 2014 RSU modification, previously issued RSUs for certain holders were cancelled and concurrently replaced with an equal number of awards with different vesting conditions. As described above, prior to modification, the vesting conditions of the awards were entirely performance and market based, with ultimate vesting contingent on achievement of one of two scenarios. Under the terms of the modified awards, 50% of the awards are performance and market based, with vesting contingent upon achievement of either the Cypress Scenario or IPO Scenario, while the remaining 50% are time-based with vesting occurring in four equal annual installments on either December 31 in the case of one holder, the first vesting of which occurred on December 31, 2014, or January 1 in the case of other holders, the first vesting of which occurred on January 1, 2015. | |||||||||
Pursuant to the terms of the Restricted Stock Unit Award Agreements associated with the modified awards, for the time based awards, upon vesting, 40% of the vested shares are promptly redeemed by Holdings at the then fair market value and the remaining 60% remain in place as issued shares. At the same time, Holdings issues to each holder a number of additional performance and market based RSUs equal to the number of shares redeemed. | |||||||||
In accordance with ASC 718 – Compensation – Stock Compensation (“ASC 718”), the Company accounted for the RSU modification as a modification of outstanding RSUs. For the component of the modified RSUs that remained performance and market based with the same vesting conditions as the prior RSUs, the Company determined that the likelihood of ultimate vesting was the same as under the previous RSUs, thus the modification resulted in the likelihood of vesting remaining improbable. Accordingly, no stock-based compensation cost has been recognized associated with these RSUs. For the component of the RSU modification that resulted in performance and market based RSUs being exchanged for time-based RSUs, it was determined that the modification resulted in the ultimate vesting of the awards to change from improbable-to-probable. As a result, the Company recognized stock-based compensation expense under the straight-line method over the requisite service period for the time-based component of the RSUs effective with the grant date, which is the same date as the RSU modification. | |||||||||
Under ASC 718, a company must determine if awards issued under stock-based compensation plans should be accounted for as equity-classified awards or liability-classified awards. Based on the terms of the time-based RSUs, it was determined that each RSU should be bifurcated into an equity-classified RSU and a liability-classified RSU based on method of settlement. The components of the time-based RSUs that will be settled via issuance of RSUs are accounted for as equity-classified awards as ultimate vesting of the RSUs is achieved through fulfilling a service condition. Accordingly, the expense to be recorded over the requisite service period was based on the grant-date fair value of the RSUs. The component of the time-based RSUs that will be redeemed for cash will be accounted for as a liability-classified award due to the cash settlement feature. In accordance with ASC 718, the value of the liability awards will be marked-to-market each reporting period. Stock-based compensation expense, which was recorded as a component of Selling, general and administrative expenses in the Consolidated Statements of Operations, was approximately $3 million during the year ended December 31, 2014. | |||||||||
During 2014, there were 61,071 new RSUs granted to employees, which includes the 54,009 new RSUs discussed above. | |||||||||
During 2013, 142,861 RSUs either expired or were forfeited. In connection with the closure of the corporate headquarters, in Ann Arbor, Michigan, several employees elected to forfeit 92,514 unvested RSUs in exchange for a payment equal to 30% of the anticipated value of such RSU holder’s RSUs upon the occurrence of a Cypress Scenario vesting event. In connection with this exchange, the Company recorded approximately $3 million of expense during the year ended December 31, 2014, which is included as a component of Selling, general and administrative expenses in the Consolidated Statements of Operations. | |||||||||
As of December 31, 2014, 184,305 RSUs had been awarded and remained outstanding, 100,450 of such outstanding RSUs were performance and market-based and 83,855 were time-based. The fair value of the performance and market-based RSUs was determined using a market-based Monte Carlo simulation model on the date of the recent modifications. The Company’s weighted-average Monte Carlo fair value assumptions include: | |||||||||
Cypress Scenario | IPO Scenario | ||||||||
Effective term | 0.04 years | 0.24 years | |||||||
Fair value of an RSU | $ | 173.83 | $ | 169.3 | |||||
Expected expense (Dollars in millions) | $ | 23 | $ | 23 | |||||
It is estimated that the fair value of the time based RSUs using a market-based Monte Carlo simulation model on the date of the grant is approximately $14 million. | |||||||||
In the event that either of the performance or market-based conditions (Cypress Scenario or IPO Scenario) are met, the fair value of the RSUs will be recognized in stock-based compensation expense either (i) pro rata over the requisite service term including a cumulative catch-up related to service provided through the date the performance condition is met or (ii) in full once the respective market-based condition is met or (iii) in full if the requisite service period has already passed when the performance condition is met. If the vesting condition was met on the performance and market-based RSUs, outstanding at December 31, 2014, the amount of expense the Company would have recognized is $15 million under the Cypress scenario or $15 million under the IPO scenario. | |||||||||
A rollforward of the outstanding RSU awards for the years ended December 31, 2012, 2013 and 2014 is as follows: | |||||||||
RSUs | |||||||||
Outstanding at January 1, 2012 | 242,000 | ||||||||
Granted | — | ||||||||
Forfeited/expired | — | ||||||||
Outstanding at December 31, 2012 | 242,000 | ||||||||
Granted | 106,369 | ||||||||
Forfeited/expired | (142,861 | ) | |||||||
Outstanding at December 31, 2013 | 205,508 | ||||||||
Granted | 61,777 | ||||||||
Cancelled | (157,963 | ) | |||||||
Grant of modified awards | 157,963 | ||||||||
Vested | (1,766 | ) | |||||||
Forfeited/expired | (81,214 | ) | |||||||
Outstanding at December 31, 2014 | 184,305 | ||||||||
At December 31, 2014, the total grant date fair value associated with the equity classified RSUs that has yet to be recognized in earnings is $6 million. This amount will be recognized ratably over the remaining vesting period, which is from January 1, 2015 to January 1, 2018. The fair value of the liability classified RSUs that has yet to be recognized in earnings is $4 million. While this amount will be recognized ratably over the remaining vesting period similar to the equity classified RSUs, the ultimate amount recognized in earnings will likely be different than the December 31, 2014 value as the outstanding awards will be remeasured to fair value each reporting period until the awards are settled in accordance with ASC 718. | |||||||||
Deferred Compensation Plan | |||||||||
The Company began offering a deferred compensation plan in 2008 that permitted certain employees to defer receipt of all or a portion of the amounts awarded under the non-equity incentive compensation plan. All amounts deferred were treated as being notionally invested in the common stock of Holdings. As such, the accounts under the plan reflect investment gains and losses associated with an investment in the Holdings common stock. The Company matches 25% of the deferral amount with an additional notional investment in common stock of Holdings, which is subject to vesting as provided in the plan. Deferred compensation expense, which is recorded as a component of Selling, general and administrative expenses in the Consolidated Statements of Operations, was less than a million, $2 million and $1 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 14. PROPERTY, PLANT AND EQUIPMENT | ||||||||
The following table breaks out the property, plant and equipment in further detail: | |||||||||
December 31, | |||||||||
(Dollars in millions) | 2014 | 2013 | |||||||
Land | $ | 7 | $ | 7 | |||||
Buildings and building fixtures | 49 | 54 | |||||||
Machinery and equipment | 176 | 167 | |||||||
Software | 15 | 17 | |||||||
Construction in progress | 20 | 16 | |||||||
267 | 261 | ||||||||
Less: Accumulated depreciation | (144 | ) | (138 | ) | |||||
$ | 123 | $ | 123 | ||||||
Depreciation is recognized on a straight-line basis over an asset’s estimated useful life. The depreciation expense from continuing operations was $20 million, $18 million, and $18 million for 2014, 2013, and 2012, respectively. |
Other_Accrued_Expenses
Other Accrued Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||
Other Accrued Expenses | 15. OTHER ACCRUED EXPENSES | ||||||||||||
The following table breaks out the other accrued expenses in further detail: | |||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||
Taxes other than income taxes | $ | 17 | $ | 14 | |||||||||
Interest payable | 3 | 4 | |||||||||||
Return reserve | 5 | 6 | |||||||||||
Accrued taxes payable | 5 | 9 | |||||||||||
Accrued legal and professional fees | 6 | 16 | |||||||||||
Accrued defective product | 1 | 1 | |||||||||||
Accrued selling and marketing | 3 | 2 | |||||||||||
Accrued freight | 3 | 2 | |||||||||||
Accrued commissions expense | 1 | 2 | |||||||||||
Accrued workers compensation | — | 1 | |||||||||||
Accrued restructuring | 3 | 5 | |||||||||||
Other | 11 | 16 | |||||||||||
$ | 58 | $ | 78 | ||||||||||
The other accrued expenses primarily consist of accrued utilities and other miscellaneous accruals. | |||||||||||||
A reconciliation of the changes in return reserves is presented in the following table. | |||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013(1) | 2012(2) | ||||||||||
Beginning balance January 1 | $ | 6 | $ | 8 | $ | 11 | |||||||
Amounts charged to revenue | 6 | 19 | 23 | ||||||||||
Returns processed | (7 | ) | (15 | ) | (26 | ) | |||||||
Classified to discontinued operations | — | (6 | ) | — | |||||||||
Ending balance December 31 | $ | 5 | $ | 6 | $ | 8 | |||||||
-1 | Includes the Chassis group, which is classified as discontinued operations that had amounts charged to revenue of $9 million in 2013 and returns processed of $6 million in 2013. The return reserve as of December 31, 2013 excludes $6 million in the Chassis group, which is classified in current liabilities of discontinued operations. | ||||||||||||
-2 | Excludes the Brake North America and Asia group, which is classified as discontinued operations that had amounts charged to revenue of $15 million in 2012 and returns processed of $21 million in 2012. |
Restructuring_of_Operations
Restructuring of Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Restructuring of Operations | 16. RESTRUCTURING OF OPERATIONS | ||||||||||||
Affinia’s restructuring activities, as described below, were undertaken to execute management’s strategy, streamline operations and to ultimately achieve net cost reductions. Costs related to these restructuring activities are reflected within Selling, general and administrative in the Consolidated Statements of Operations. The restructuring charges consist of employee termination costs, other exit costs and impairment costs. Severance costs are being accounted for in accordance with ASC Topic 420, “Exit or Disposal Cost Obligations” and ASC Topic 712, “Compensation—Nonretirement Postemployment Benefits.” On October 15, 2013, Affinia announced that it would relocate its Ann Arbor, Michigan corporate headquarters to Gastonia, North Carolina, which is the location of the Filtration segment. The Company recorded an accrual of $4 million and $1 million as of December 31, 2013 and December 31, 2014, respectively, related to the relocation. The transition to the new corporate headquarters was substantially completed by the end of the second quarter of 2014. On August 29, 2014, the Company and CQ Sourcing agreed to end their current business relationship effective as of December 31, 2014. The Company recorded an accrual of $1 million as of December 31, 2014 related to the ending of this relationship. | |||||||||||||
The following table summarizes the restructuring charges and activity for the Company: | |||||||||||||
(Dollars in millions) | Total | ||||||||||||
Balance at December 31, 2012 | $ | 1 | |||||||||||
Charges to expense: | |||||||||||||
Employee termination benefits | 6 | ||||||||||||
Reductions: | |||||||||||||
Cash payments | (2 | ) | |||||||||||
Balance at December 31, 2013 | $ | 5 | |||||||||||
Charges to expense: | |||||||||||||
Employee termination benefits | 8 | ||||||||||||
Reductions: | |||||||||||||
Cash payments | (10 | ) | |||||||||||
Balance at December 31, 2014 | $ | 3 | |||||||||||
The following table shows the restructuring expenses by reportable segment: | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Filtration | $ | 1 | $ | — | $ | — | |||||||
ASA | 1 | — | 1 | ||||||||||
Corporate, eliminations and other | 6 | 6 | — | ||||||||||
Total from continuing operations | $ | 8 | $ | 6 | $ | 1 | |||||||
Discontinued Operations | — | — | 20 | ||||||||||
Total | $ | 8 | $ | 6 | $ | 21 | |||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. RELATED PARTY TRANSACTIONS |
Mr. John M. Riess, one of the Company’s Board members, is the parent of J. Michael Riess, who is currently employed with Genuine Parts Company (NAPA) as president of a distribution facility. NAPA is the Company’s largest customer as a percentage of total net sales from continuing operations. NAPA accounted for 23%, 22% and 23% of the Company’s total net sales from continuing operations for the years ended December 31, 2014, 2013 and 2012, respectively. | |
In 2010, Mr. Zhang Haibo, 15% owner of Affinia Hong Kong Limited (“AHK”), loaned $1 million to AHK, a Brake North America and Asia group entity, to facilitate the establishment of a new subsidiary, Affinia Qingdao Braking Systems Co. Ltd., a new friction company in China with the intention of manufacturing friction products and distributing these products in Asia and North America. AHK owns 100% of the subsidiary. The contribution agreement was not finalized as of December 31, 2010, but the cash had been received by AHK, as such Affinia has recorded the $1 million as related party debt. In 2011, the contribution agreement had been finalized and the related party debt had been transferred to accumulated paid-in capital. This entity is no longer owned because it was distributed as part of the Brake North America and Asia group distribution in 2012. | |
In 2010, Mr. Zhang Haibo contributed $3 million to AHK to facilitate the purchase of land use rights for a new filtration company in China with the intention of manufacturing and distributing filtration products principally in Asia. The contribution did not change the ownership percentage and as a consequence the noncontrolling interest did not change but property, plant and equipment did increase. In 2011, Mr. Zhang Haibo, 15% owner of AHK, contributed $1 million for funding to Longkou Wix Filtration Co. Ltd., a new filtration company in China with the intention of manufacturing filtration products and distributing these products in Asia and North America. During the third quarter of 2012, Affinia purchased the remaining 15% ownership interest in Longkou Wix Filtration Co. Ltd. |
Venezuelan_Operations
Venezuelan Operations | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Venezuelan Operations | 18. VENEZUELAN OPERATIONS |
In accordance with U.S. GAAP, effective January 1, 2010, the Company accounted for Venezuela as a highly inflationary economy because the three-year cumulative inflation rate for Venezuela using the blended Consumer Price Index (which is associated with the city of Caracas) and the National Consumer Price Index (developed commencing in 2008 and covering the entire country of Venezuela) exceeded 100%. Accordingly, effective January 1, 2010, Affinia’s Venezuelan subsidiary used the U.S. Dollar as its functional currency. The financial statements of this subsidiary must be re-measured into the Company’s reporting currency (U.S. Dollar) and future exchange gains and losses from the re-measurement of monetary assets and liabilities are reflected in current earnings, rather than exclusively in the equity section of the balance sheet, until such time as the economy is no longer considered highly inflationary. The local currency in Venezuela is the Bolivar Fuerte (“VEF”). | |
On January 11, 2010, the Venezuelan government devalued the country’s currency and, on February 8, 2013, the Venezuelan government announced another devaluation of the currency to 6.3 VEF per U.S. Dollar and it eliminated the parallel market rate of 5.3 VEF per U.S. Dollar. The Company used the official exchange rate of 6.3 VEF per U.S. Dollar to translate the financial statements of the Venezuelan subsidiary to comply with the regulations of Venezuela and are analyzing the impact of the volume restrictions on the business. The one-time devaluation had a $2 million negative impact on Affinia’s pre-tax net income during the first quarter of 2013. | |
In 2013, the Venezuelan government authorized certain companies that operate in designated industry sectors to exchange a limited volume of VEFs for U.S. Dollars at a bid rate established via weekly auctions under what is known as SICAD 1. SICAD 1 auctions began in October 2013. However, SICAD 1 auctions are not indicative of a free market exchange as only designated industries may bid into individual auctions and the highest bids are not always recognized by the Venezuelan government. In March 2014, another currency exchange mechanism (SICAD 2) became effective. SICAD 2 is intended to more closely resemble a market-driven exchange rate than the rates provided by Venezuela’s other regulated exchange mechanisms (i.e. the official rate and the SICAD 1 rate). Thus, as of March 31, 2014, entities may be able to convert VEFs at one of three legal exchange rates: official rate of 6.3 VEF to 1 U.S. Dollar, SICAD 1 rate of 10.7 VEF to 1 U.S. Dollar based on closing rate at last auction, and SICAD 2 rate of 50.86 VEF to 1 U.S. Dollar based on closing rate on March 31, 2014. | |
As a result of the multiple exchange rates available to settle transactions, at March 31, 2014, management reevaluated the exchange rates previously used for measurement, which had been the official rate of 6.3 VEF to 1 U.S. Dollar. While substantially all of the import transactions for purchases of inventory have been preapproved by the Venezuelan government at the official rate of 6.3 VEF to 1 U.S. Dollar, the Venezuelan government has not settled these transactions with vendors since November 2013. This, along with the introduction of the SICAD 1 and SICAD 2 market mechanisms, raise considerable doubts about the Company’s ability to ultimately settle transactions at the official rate in the future. Additionally, legislation enacted by the Venezuelan government in 2014 indicates that foreign investments are subject to the SICAD 1 rate rather than the official rate. While not the determinative factor, management views the passing of this legislation as a critical component in its assessment of the most representative rate at which transactions may settle in the future, as well as consideration of the aforementioned legislation that was enacted earlier in 2014, Affinia recorded a one-time devaluation of $7 million in the first quarter of 2014, which represents a move from the official rate to the SICAD 1 rate of 10.7 VEF to 1 U.S. Dollar. Of the $7 million devaluation charge, $5 million was recorded in the Filtration segment and $2 million was recorded in the ASA segment. This devaluation is reflected in “Other income and expenses, net” in the Consolidated Statements of Operations. | |
As of December 31, 2014, the Company reflected in its results, a movement in the SICAD 1 rate from 10.7 VEF to 12.0 VEF to 1 U.S. Dollar. This resulted in an immaterial devaluation. | |
In 2014, Affinia’s Venezuelan subsidiaries represented approximately 5% of the Company’s consolidated net sales and the Venezuelan subsidiaries have total assets and liabilities of less than 5% of the Company’s total consolidated assets and liabilities as of December 31, 2014. | |
Management will continue to monitor the environment in Venezuela to determine whether further devaluation charges are required. At this time, management does not believe that the foreign exchange limitations or restrictions will have a material impact on the Company’s liquidity, cash flows or debt covenants. |
Financial_Information_for_Guar
Financial Information for Guarantors and Non-Guarantors | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||
Financial Information for Guarantors and Non-Guarantors | 19. FINANCIAL INFORMATION FOR GUARANTORS AND NON-GUARANTORS | ||||||||||||||||||||||||
Holdings (presented as “Parent” in the following schedules), through its wholly-owned subsidiary, Affinia (presented as “Issuer” in the following schedules), issued $250 million of Senior Notes on April 25, 2013. As of December 31, 2014, there were $250 million of Senior Notes outstanding. The notes were offered only to qualified institutional buyers and certain persons in offshore transactions | |||||||||||||||||||||||||
The Senior Notes are fully, irrevocably, unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Company’s current and future domestic subsidiaries (the “Guarantors”). The Senior Notes are general obligations of the Issuer and guaranteed by the Parent and the Guarantors. | |||||||||||||||||||||||||
The following information presents Condensed Consolidating Statements of Operations for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, Condensed Consolidating Statements of Comprehensive Income for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, Condensed Consolidating Balance Sheets as of December 31, 2014 and December 31, 2013 and Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 of (i) the Parent, (ii) the Issuer, (iii) the Guarantors, (iv) the Non-Guarantors, and (v) eliminations to arrive at the information for the Company on a consolidated basis. Other separate financial statements and other disclosures concerning the Parent and the Guarantors are not presented because management does not believe that such information is material to investors. | |||||||||||||||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 684 | $ | 870 | $ | (158 | ) | $ | 1,396 | ||||||||||||
Cost of sales | — | — | (539 | ) | (675 | ) | 158 | (1,056 | ) | ||||||||||||||||
Gross profit | — | — | 145 | 195 | — | 340 | |||||||||||||||||||
Selling, general and administrative expenses | — | (39 | ) | (68 | ) | (92 | ) | — | (199 | ) | |||||||||||||||
Operating (loss) profit | — | (39 | ) | 77 | 103 | — | 141 | ||||||||||||||||||
Other income and expense, net | — | (3 | ) | (1 | ) | (9 | ) | — | (13 | ) | |||||||||||||||
Interest expense | — | (55 | ) | — | (1 | ) | — | (56 | ) | ||||||||||||||||
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | — | (97 | ) | 76 | 93 | — | 72 | ||||||||||||||||||
Income tax provision | — | (9 | ) | — | (10 | ) | — | (19 | ) | ||||||||||||||||
Equity in (loss) income, net of tax | 82 | 188 | 86 | — | (356 | ) | — | ||||||||||||||||||
Net (loss) income from continuing operations | 82 | 82 | 162 | 83 | (356 | ) | 53 | ||||||||||||||||||
Income from discontinued operations, net of tax | — | — | 26 | 3 | — | 29 | |||||||||||||||||||
Net (loss) income | 82 | 82 | 188 | 86 | (356 | ) | 82 | ||||||||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Net (loss) income attributable to the Company | $ | 82 | $ | 82 | $ | 188 | $ | 86 | $ | (356 | ) | $ | 82 | ||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net income (loss) | $ | 82 | $ | 82 | $ | 188 | $ | 86 | $ | (356 | ) | $ | 82 | ||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||||
Interest Rate Swap | (8 | ) | (8 | ) | — | — | 8 | (8 | ) | ||||||||||||||||
Pension liability adjustment | 1 | 1 | — | 1 | (2 | ) | 1 | ||||||||||||||||||
Reclassification adjustments included in net income | 2 | 2 | — | 2 | (4 | ) | 2 | ||||||||||||||||||
Change in foreign currency translation adjustments | (28 | ) | (28 | ) | — | (28 | ) | 56 | (28 | ) | |||||||||||||||
Total other comprehensive income (loss) | (33 | ) | (33 | ) | — | (25 | ) | 58 | (33 | ) | |||||||||||||||
Total comprehensive income (loss) | 49 | 49 | 188 | 61 | (298 | ) | 49 | ||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | 49 | $ | 49 | $ | 188 | $ | 61 | $ | (298 | ) | $ | 49 | ||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 628 | $ | 877 | $ | (144 | ) | $ | 1,361 | ||||||||||||
Cost of sales | — | — | (506 | ) | (681 | ) | 144 | (1,043 | ) | ||||||||||||||||
Gross profit | — | — | 122 | 196 | — | 318 | |||||||||||||||||||
Selling, general and administrative expenses | — | (46 | ) | (63 | ) | (91 | ) | — | (200 | ) | |||||||||||||||
Operating (loss) profit | — | (46 | ) | 59 | 105 | — | 118 | ||||||||||||||||||
Loss on extinguishment of debt | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||
Other (loss) income, net | — | (2 | ) | 1 | — | — | (1 | ) | |||||||||||||||||
Interest expense | — | (72 | ) | — | (1 | ) | — | (73 | ) | ||||||||||||||||
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | — | (135 | ) | 60 | 104 | — | 29 | ||||||||||||||||||
Income tax provision | — | 2 | — | (24 | ) | — | (22 | ) | |||||||||||||||||
Equity in income (loss), net of tax | 10 | 143 | 64 | (2 | ) | (217 | ) | (2 | ) | ||||||||||||||||
Net income from continuing operations | 10 | 10 | 124 | 78 | (217 | ) | 5 | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 19 | (14 | ) | — | 5 | ||||||||||||||||||
Net income (loss) | 10 | 10 | 143 | 64 | (217 | ) | 10 | ||||||||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 10 | $ | 10 | $ | 143 | $ | 64 | $ | (217 | ) | $ | 10 | ||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net income (loss) | $ | 10 | $ | 10 | $ | 143 | $ | 64 | $ | (217 | ) | $ | 10 | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||
Pension liability adjustment | 1 | 1 | — | 1 | (2 | ) | 1 | ||||||||||||||||||
Change in foreign currency translation adjustments | (19 | ) | (19 | ) | — | (19 | ) | 38 | (19 | ) | |||||||||||||||
Change in fair value of interest rate swaps | 9 | 9 | — | — | (9 | ) | 9 | ||||||||||||||||||
Less: reclassification adjustments included in net income | (2 | ) | (2 | ) | — | — | 2 | (2 | ) | ||||||||||||||||
Total other comprehensive (loss) income | (11 | ) | (11 | ) | — | (18 | ) | 29 | (11 | ) | |||||||||||||||
Total comprehensive (loss) income | (1 | ) | (1 | ) | 143 | 46 | (188 | ) | (1 | ) | |||||||||||||||
Less: comprehensive income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income attributable to the Company | $ | (1 | ) | $ | (1 | ) | $ | 143 | $ | 46 | $ | (188 | ) | $ | (1 | ) | |||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 609 | $ | 997 | $ | (347 | ) | $ | 1,259 | ||||||||||||
Cost of sales | — | — | (490 | ) | (824 | ) | 347 | (967 | ) | ||||||||||||||||
Gross profit | — | — | 119 | 173 | — | 292 | |||||||||||||||||||
Selling, general and administrative expenses | — | (45 | ) | (46 | ) | (81 | ) | — | (172 | ) | |||||||||||||||
Operating (loss) profit | — | (45 | ) | 73 | 92 | — | 120 | ||||||||||||||||||
Loss on extinguishment of debt | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||
Other income (loss), net | — | 3 | (4 | ) | 4 | — | 3 | ||||||||||||||||||
Interest expense | — | (62 | ) | — | (1 | ) | — | (63 | ) | ||||||||||||||||
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | — | (105 | ) | 69 | 95 | — | 59 | ||||||||||||||||||
Income tax provision | — | (21 | ) | 2 | (26 | ) | — | (45 | ) | ||||||||||||||||
Equity in (loss) income, net of tax | (103 | ) | 23 | 653 | 1 | (573 | ) | 1 | |||||||||||||||||
Net (loss) income from continuing operations | (103 | ) | (103 | ) | 724 | 70 | (573 | ) | 15 | ||||||||||||||||
(Loss) Income from discontinued operations, net of tax | — | — | (701 | ) | 584 | — | (117 | ) | |||||||||||||||||
Net (loss) income | (103 | ) | (103 | ) | 23 | 654 | (573 | ) | (102 | ) | |||||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | — | — | — | 1 | — | 1 | |||||||||||||||||||
Net (loss) income attributable to the Company | $ | (103 | ) | $ | (103 | ) | $ | 23 | $ | 653 | $ | (573 | ) | $ | (103 | ) | |||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net (loss) income | $ | (103 | ) | $ | (103 | ) | $ | 23 | $ | 654 | $ | (573 | ) | $ | (102 | ) | |||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||||
Change in foreign currency translation adjustments | (15 | ) | (15 | ) | — | (15 | ) | 30 | (15 | ) | |||||||||||||||
Total other comprehensive (loss) income | (15 | ) | (15 | ) | — | (15 | ) | 30 | (15 | ) | |||||||||||||||
Total comprehensive (loss) income | (118 | ) | (118 | ) | 23 | 639 | (543 | ) | (117 | ) | |||||||||||||||
Less: comprehensive income attributable to noncontrolling interest, net of tax | — | — | — | 1 | — | 1 | |||||||||||||||||||
Comprehensive (loss) income attributable to the Company | $ | (118 | ) | $ | (118 | ) | $ | 23 | $ | 638 | $ | (543 | ) | $ | (118 | ) | |||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 10 | $ | — | $ | 35 | $ | — | $ | 45 | |||||||||||||
Restricted Cash | — | — | — | 4 | — | 4 | |||||||||||||||||||
Accounts receivable | — | — | 44 | 101 | — | 145 | |||||||||||||||||||
Inventories | — | — | 98 | 116 | — | 214 | |||||||||||||||||||
Other current assets | — | 44 | 1 | 60 | — | 105 | |||||||||||||||||||
Total current assets | — | 54 | 143 | 316 | — | 513 | |||||||||||||||||||
Investments and other assets | — | 121 | 36 | 28 | — | 185 | |||||||||||||||||||
Intercompany investments | (220 | ) | 388 | 749 | — | (917 | ) | — | |||||||||||||||||
Intercompany receivables (payables) | — | 48 | (508 | ) | 460 | — | — | ||||||||||||||||||
Property, plant and equipment, net | — | 1 | 57 | 65 | — | 123 | |||||||||||||||||||
Total assets | $ | (220 | ) | $ | 612 | $ | 477 | $ | 869 | $ | (917 | ) | $ | 821 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | 10 | $ | 70 | $ | 58 | $ | — | $ | 138 | |||||||||||||
Notes payable | — | — | — | 19 | — | 19 | |||||||||||||||||||
Accrued payroll and employee benefits | — | 9 | 4 | 7 | — | 20 | |||||||||||||||||||
Other accrued expenses | — | 15 | 15 | 28 | — | 58 | |||||||||||||||||||
Total current liabilities | — | 34 | 89 | 112 | — | 235 | |||||||||||||||||||
Deferred employee benefits and noncurrent liabilities | — | 5 | — | 8 | — | 13 | |||||||||||||||||||
Long-term debt | — | 792 | — | — | — | 792 | |||||||||||||||||||
Total liabilities | — | 831 | 89 | 120 | — | 1,040 | |||||||||||||||||||
Total shareholder’s (deficit) equity | (220 | ) | (219 | ) | 388 | 749 | (917 | ) | (219 | ) | |||||||||||||||
Total liabilities and equity | $ | (220 | ) | $ | 612 | $ | 477 | $ | 869 | $ | (917 | ) | $ | 821 | |||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 68 | $ | — | $ | 33 | $ | — | $ | 101 | |||||||||||||
Accounts receivable | — | — | 24 | 117 | — | 141 | |||||||||||||||||||
Inventories | — | — | 87 | 134 | — | 221 | |||||||||||||||||||
Other current assets | — | 50 | — | 50 | — | 100 | |||||||||||||||||||
Current assets of discontinued operations | — | — | 138 | 3 | — | 141 | |||||||||||||||||||
Total current assets | — | 118 | 249 | 337 | — | 704 | |||||||||||||||||||
Other non-current assets | — | 122 | 36 | 24 | — | 182 | |||||||||||||||||||
Intercompany investments | (202 | ) | 1,196 | 726 | — | (1,720 | ) | — | |||||||||||||||||
Intercompany (payables) receivables | — | (672 | ) | 247 | 425 | — | — | ||||||||||||||||||
Property, plant and equipment, net | — | 2 | 50 | 71 | — | 123 | |||||||||||||||||||
Total assets | $ | (202 | ) | $ | 766 | $ | 1,308 | $ | 857 | $ | (1,720 | ) | $ | 1,009 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | 6 | $ | 65 | $ | 50 | $ | — | $ | 121 | |||||||||||||
Notes payable | — | — | — | 23 | — | 23 | |||||||||||||||||||
Current maturities of long-term debt | — | 7 | — | — | — | 7 | |||||||||||||||||||
Accrued payroll and employee benefits | — | 8 | 3 | 8 | — | 19 | |||||||||||||||||||
Other accrued expenses | — | 22 | 14 | 42 | — | 78 | |||||||||||||||||||
Current liabilities of discontinued operations | — | — | 29 | 2 | — | 31 | |||||||||||||||||||
Total current liabilities | — | 43 | 111 | 125 | — | 279 | |||||||||||||||||||
Deferred employee benefits and noncurrent liabilities | — | 17 | 1 | 6 | — | 24 | |||||||||||||||||||
Long-term debt | — | 907 | — | — | — | 907 | |||||||||||||||||||
Total liabilities | — | 967 | 112 | 131 | — | 1,210 | |||||||||||||||||||
Total shareholder’s (deficit) equity | (202 | ) | (201 | ) | 1,196 | 726 | (1,720 | ) | (201 | ) | |||||||||||||||
Total liabilities and equity | $ | (202 | ) | $ | 766 | $ | 1,308 | $ | 857 | $ | (1,720 | ) | $ | 1,009 | |||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Elimination | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 66 | $ | (25 | ) | $ | 13 | $ | 32 | $ | (66 | ) | $ | 20 | |||||||||||
Investing activities | |||||||||||||||||||||||||
Proceeds from sales of assets | — | 149 | — | — | — | 149 | |||||||||||||||||||
Change in restricted cash | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Additions to property, plant, and equipment | — | — | (13 | ) | (13 | ) | — | (26 | ) | ||||||||||||||||
Proceeds from sale of equity method investment | — | 4 | — | — | — | 4 | |||||||||||||||||||
Other investing activities | — | 3 | — | — | — | 3 | |||||||||||||||||||
Net cash provided by (used in) investing activities | — | 156 | (13 | ) | (17 | ) | — | 126 | |||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Repayments of other debt | (66 | ) | — | — | (10 | ) | 66 | (10 | ) | ||||||||||||||||
Proceeds from other debt | — | — | — | 7 | — | 7 | |||||||||||||||||||
Dividend to Shareholder | — | (66 | ) | — | — | — | (66 | ) | |||||||||||||||||
Repayments of Term Loans | — | (123 | ) | — | — | — | (123 | ) | |||||||||||||||||
Net cash (used in) provided by financing activities | (66 | ) | (189 | ) | — | (3 | ) | 66 | (192 | ) | |||||||||||||||
Effect of exchange rates on cash | — | — | — | (10 | ) | — | (10 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | (58 | ) | — | 2 | — | (56 | ) | |||||||||||||||||
Cash and cash equivalents at beginning of period | — | 68 | — | 33 | — | 101 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 10 | $ | — | $ | 35 | $ | — | $ | 45 | |||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Elimination | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | 352 | $ | 61 | $ | 17 | $ | 21 | $ | (352 | ) | $ | 99 | ||||||||||||
Investing activities | |||||||||||||||||||||||||
Investments in companies, net of cash acquired | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||
Additions to property, plant, and equipment | — | (1 | ) | (17 | ) | (13 | ) | — | (31 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | (1 | ) | (17 | ) | (14 | ) | — | (32 | ) | |||||||||||||||
Financing activities | |||||||||||||||||||||||||
Repayment on Secured Notes | — | (195 | ) | — | — | — | (195 | ) | |||||||||||||||||
Repayment on Subordinated Notes | — | (367 | ) | — | — | — | (367 | ) | |||||||||||||||||
Dividend to Shareholder | (352 | ) | (352 | ) | — | — | 352 | (352 | ) | ||||||||||||||||
Repayment on Term Loans | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||
Payment of deferred financing costs | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||
Proceeds from Term Loans | — | 667 | — | — | — | 667 | |||||||||||||||||||
Proceeds from Senior Notes | — | 250 | — | — | — | 250 | |||||||||||||||||||
Net cash provided by financing activities | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||
Effect of exchange rates on cash | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | 45 | — | 5 | — | 50 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | $ | — | $ | 23 | $ | — | $ | 28 | $ | — | $ | 51 | |||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 68 | $ | — | $ | 33 | $ | — | $ | 101 | |||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non-Guarantor | Elimination | Consolidated | |||||||||||||||||||
Total | |||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 151 | $ | (58 | ) | $ | 4 | $ | — | $ | 97 | ||||||||||||
Investing activities | |||||||||||||||||||||||||
Proceeds from sales of assets | — | — | 1 | 3 | — | 4 | |||||||||||||||||||
Additions to property, plant, and equipment | — | — | (8 | ) | (19 | ) | — | (27 | ) | ||||||||||||||||
Net cash used in investing activities | — | — | (7 | ) | (16 | ) | — | (23 | ) | ||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Net decrease in other short-term debt | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Payments of other debt | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Repayment on Secured Notes | — | (23 | ) | — | — | — | (23 | ) | |||||||||||||||||
Net payments of ABL Revolver | — | (110 | ) | — | — | — | (110 | ) | |||||||||||||||||
Cash related to the deconsolidation of BPI | — | — | (11 | ) | — | — | (11 | ) | |||||||||||||||||
Proceeds from BPI’s new credit facility | — | — | 76 | — | — | 76 | |||||||||||||||||||
Payment of deferred financing costs | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||
Purchase of noncontrolling interest | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities | — | (137 | ) | 65 | (6 | ) | — | (78 | ) | ||||||||||||||||
Effect of exchange rates on cash | — | — | — | 1 | — | 1 | |||||||||||||||||||
Change in cash and cash equivalents | — | 14 | — | (17 | ) | — | (3 | ) | |||||||||||||||||
Cash and cash equivalents at beginning of period | — | 9 | — | 45 | — | 54 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 23 | $ | — | $ | 28 | $ | — | $ | 51 | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
The Consolidated Financial Statements include all domestic and foreign subsidiaries that were more than 50% owned and controlled as of each respective reporting period presented. All intercompany transactions have been eliminated. Investments in which the Company has the ability to exercise significant influence but does not control are accounted for using the equity method of accounting. Investments in which the Company is not able to exercise significant influence over are accounted for under the cost method of accounting. | |
Use of Estimates | Use of Estimates |
These Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The preparation of financial statements that conform to GAAP in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. | |
Concentration of Credit Risk | Concentration of Credit Risk |
The primary type of financial instruments that subject the Company to concentrations of credit risk are trade accounts receivable. The Company limits its credit risk by performing ongoing credit evaluations of its customers and, when deemed necessary, requires letters of credit, guarantees or collateral. The majority of the Company’s accounts receivable is due from replacement parts wholesalers and retailers serving the aftermarket. | |
The Company’s net sales to its largest customer as a percentage of total net sales from continuing operations for the years ended December 31, 2014, 2013 and 2012, was 23%, 22% and 23%, respectively. Net sales represent the amounts invoiced to customers after adjustments related to rebates, returns and discounts. The Company provides reserves for rebates, returns and discounts at the time of sale which are subsequently applied to the account of specific customers based upon actual activity including the attainment of targeted volumes. The Company’s largest customer’s accounts receivable as of December 31, 2014 and 2013, represented approximately 17% and 11%, respectively, of the total accounts receivable. | |
Foreign Currency Translation | Foreign Currency Translation |
Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date and equity accounts are translated at historical rates. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are presented in Change in foreign currency translation adjustments within the Consolidated Statements of Comprehensive Income (Loss). | |
Included in net income (loss) are the gains and losses arising from foreign currency transactions. The impact on income from continuing operations before income tax provision, equity in income (loss), net of tax and noncontrolling interest of foreign currency transactions including the results of the Company’s foreign currency hedging activities amounted to a loss of $13 million, loss of $6 million and a gain of $2 million in 2014, 2013 and 2012, respectively. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. | |
Restricted Cash | Restricted Cash |
Restricted cash at December 31, 2014 relates to amounts on deposit in Venezuela to fund the procurement of U.S. Dollars via currency exchange auctions administered by the Venezuelan government. | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable |
The Company records trade accounts receivable when revenue is recorded in accordance with the Company’s revenue recognition policy and relieves accounts receivable when payments are received from customers. | |
Allowance for doubtful accounts | |
The allowance for doubtful accounts is established through charges to the provision for bad debts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts, and management’s evaluation of business risk. The allowance is an estimate that may be impacted by economic and market conditions which could have an effect on future allowance requirements and results of operations. | |
Inventories | Inventories |
Inventories are valued at the lower of cost or market. Cost is determined on the first-in, first-out (“FIFO”) method of inventory costing for all domestic inventories and at the Company’s Poland operations, or average cost basis for other non-U.S. inventories. | |
Goodwill | Goodwill |
Goodwill is not amortized, but instead the Company evaluates goodwill for impairment, as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. In assessing the recoverability of goodwill, the Company performs a qualitative or quantitative assessment to test for impairment annually. If the Company determine, on the basis of qualitative factors, that a quantitative impairment test is required estimated future cash flows and other factors are made to determine the fair value of the respective reporting unit. If these estimates or related projections change in the future, the Company may be required to record impairment charges for goodwill at that time. | |
Intangibles | Intangibles |
Affinia has trade names with indefinite lives and other intangibles with definite lives. Affinia tests trade names for impairment on an annual basis as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. Trade names are tested for impairment by comparing the fair value to their carrying values. | |
The Company’s intangibles with definite lives consist of customer relationships, patents and developed technology. These assets are amortized on a straight-line basis over estimated useful lives ranging from 5 to 20 years. Certain conditions may arise that could result in a change in useful lives or require the Company to perform a valuation to determine if the definite lived intangibles are impaired. | |
Deferred Financing Costs | Deferred Financing Costs |
Deferred financing costs are incurred to obtain long-term financing and are amortized using the effective interest method over the term of the related debt. The amortization of deferred financing costs is classified in interest expense in the statement of operations. | |
Depreciation | Depreciation |
Fixed assets are depreciated over their estimated remaining lives using the straight-line method for financial reporting purposes and accelerated depreciation methods for federal income tax purposes. Major additions and improvements are capitalized and depreciated over their estimated useful lives, and repairs and maintenance are charged to expense in the period incurred. The Company reviews long-lived assets for impairment and generally accepted accounting principles require recognition of an impairment loss only if the carrying amount of a long-lived asset is not recoverable from its undiscounted cash flows. If the long-lived asset is not recoverable, the Company measures an impairment loss as the difference between the carrying amount and fair value of the asset. | |
Useful lives for buildings and building improvements, machinery and equipment, tooling and office equipment, furniture and fixtures principally range from 20 to 30 years, five to ten years, three to five years and three to ten years, respectively. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds is recorded as a gain or loss on disposition. | |
Revenue Recognition | Revenue Recognition |
Sales are recognized when products are shipped or received, depending on the contractual terms, and risk of loss has transferred to the customer. The Company estimates and records provisions for warranty costs, sales returns, rebates and other allowances based on experience and other relevant factors, when sales are recognized. The Company assesses the adequacy of its recorded warranty, sales returns, rebates and allowances liabilities on a regular basis and adjusts the recorded amounts as necessary. While management believes that these estimates are reasonable, actual warranty costs, actual returns, rebates and allowances may differ from estimates. Shipping and handling fees billed to customers are included in sales and the costs of shipping and handling are included in cost of sales. | |
Income Taxes | Income Taxes |
Income taxes are recognized during the period in which transactions enter into the determination of financial statement income, with deferred income taxes being provided for the tax effect of temporary differences between the carrying amount of assets and liabilities and their tax basis. Deferred income taxes are provided on the undistributed earnings of foreign subsidiaries and affiliated companies except to the extent such earnings are considered to be permanently reinvested in the subsidiary or affiliate. In cases where foreign tax credits will not offset U.S. income taxes, amounts are included in the Income tax provision within Consolidated Statement of Operations. | |
The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. | |
Financial Instruments | Financial Instruments |
The reported fair values of financial instruments, consisting of cash and cash equivalents, trade accounts receivable and long-term debt, are based on a variety of factors. Where available, fair values represent quoted market prices for identical or comparable instruments. Where quoted market prices are not available, fair values are estimated based on assumptions concerning the implied market volatilities, amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of credit and market risk. Fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. As of December 31, 2014 and 2013, the book value of some of the Company’s financial instruments, consisting of cash and cash equivalents and trade accounts receivable, approximated their fair values. The fair value of long-term debt is discussed further in Note 6 Debt. | |
Environmental Compliance and Remediation | Environmental Compliance and Remediation |
Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to existing conditions caused by past operations which do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Estimated costs are based upon current laws and regulations, existing technology and the most probable method of remediation. The costs are not discounted and exclude the effects of inflation. If the cost estimates result in a range of equally probable amounts, the lower end of the range is accrued. | |
Advertising Costs and Promotional Programs | Advertising Costs |
Advertising costs are recognized in Selling, general and administrative expenses within the Consolidated Statements of Operations at the time advertising when incurred. Advertising expenses included in continuing operations were $20 million, $19 million and $20 million for the years 2014, 2013, and 2012, respectively. The advertising expenses included in discontinued operations, were nil, $2 million and $7 million for the years 2014, 2013, and 2012, respectively. | |
Promotional Programs | |
Cooperative advertising programs conducted with customers that promote the Company’s products are accrued as a rebate based on anticipated total amounts to be rebated to customers over the period of the agreement with the customer. Rebates are reflected in Net sales within the Consolidated Statements of Operations. Aftermarket distributors typically source their product lines at a particular price point and product category with one “full-line” supplier, such as Affinia, which covers substantially all of their product requirements. Switching to a new supplier typically requires that a distributor or supplier make a substantial investment to purchase, or “changeover” to, the new supplier’s products. The changeover costs and other incentives incurred in connection with obtaining new business are recognized as selling expense in the period in which the changeover from a competitor’s product to the Company’s product occurs. Infrequently, the Company enters into a contract with a customer for a set period of time that requires the reimbursement of the incentive by the customer if the future conditions of the contract are not met. In these infrequent cases the incentive is recorded as a reduction of revenue over the life of the contract. | |
Insurance | Insurance |
The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, vehicle liability and the Company-funded portion of employee-related health care benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. | |
Research and Development Costs | Research and Development Costs |
The Company charges research and development expenses, relating to the development of new products or the improvements or redesign of its existing products, to expense when incurred. The Company incurred less than $1 million for each of the years ended 2014, 2013 and 2012. These costs are recognized in Cost of sales within the Consolidated Statements of Operations. | |
Derivatives | Derivatives |
The Company is subject to various financial risks during the normal course of business operations, including but not limited to, adverse changes to interest rates, currency exchange rates, counterparty creditworthiness, and commodity prices. The Company may utilize financial derivative instruments in order to mitigate the potential impact of these factors. The Company’s policies strictly prohibit the use of derivatives for speculative purposes. | |
The Company uses derivative financial instruments to manage the risk that changes in interest rates will have on the amount of future interest payments. Interest rate swap contracts are used to adjust the proportion of total debt that is subject to variable versus fixed interest rates. Under these agreements, the Company agrees to pay an amount equal to a specified fixed rate times a notional principal amount, and to receive an amount equal to a specified variable rate times the same notional principal amount or vice versa. The notional amounts of the contract are not exchanged. No other cash payments are made unless the contract is terminated prior to maturity, in which case the amount paid or received in settlement is established by agreement at the time of termination and will represent the net present value, at current rates of interest, of the remaining obligation to exchange payments under the terms of the contract. The Company measures hedge effectiveness, at least quarterly, by using the hypothetical derivative method. | |
The Company’s derivative instrument portfolio includes standard forward currency contracts and interest rate swaps. Beginning in 2014, the Company began utilizing forward currency contracts that are intended to offset foreign exchange risk for certain forecasted gross receivable and payable balances. These contracts qualify for, and the Company has elected to apply, hedge accounting treatment under ASC 815 “Derivatives and Hedging” (“ASC 815”). In accordance with ASC 815, gains or losses on outstanding hedges are recorded as a component of Accumulated Other Comprehensive Income (“AOCI”) and reclassified into net income in the same period during which the hedged transaction impacts net income. Prior to entering into the forward currency contracts in 2014, the Company entered into currency forward contract that were intended to offset the earnings impact related to the periodic revaluation of specific non-functional currency denominated monetary working capital accounts and intercompany financing arrangements. The Company did not elect hedge accounting treatment for these currency forward contacts because the earnings impact from both the underlying exposures and the hedge transactions were recognized in earnings each accounting period. The Company uses interest rate swaps to manage the ratio of net floating-rate debt to total debt outstanding, thereby reducing the potential impact that interest rate variability may have on its consolidated financial results. The Company has designated its interest rate swaps as cash flow hedges. | |
Stock-Based Compensation and Deferred Compensation Plan | Stock-Based Compensation |
The Company accounts for equity awards issued under its 2005 Stock Plan in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). See Note 13 for additional information. | |
Deferred Compensation Plan | |
The Company established a deferred compensation plan in 2008 that permitted executives to defer receipt of all or a portion of the amounts payable under the non-equity incentive compensation plan. All amounts deferred were treated solely for purposes of the plan to have been notionally invested in the common stock of Holdings. As such, the accounts under the plan will reflect investment gains and losses associated with an investment in Holdings’ common stock. The Company matched 25% of the deferral with an additional notional investment in common stock of Holdings, which is subject to vesting as provided in the plan. | |
Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements |
Adopted Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.”ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The adoption of this standard has not had any impact on the presentation of unrecognized tax benefits in the Consolidated Balance Sheets. | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 amends the definition of a discontinued operation in Accounting Standards Codification (“ASC”) 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation. In addition, the ASU requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods in the statement of financial position, as well as significant changes to the presentation requirements within the statement of cash flows. This ASU is effective for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. The adoption of this ASU could have a significant impact on the financial statement presentation associated with any disposal transactions that may occur in the future. | |
Accounting Pronouncements Issued But Not Yet Adopted | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU is effective for reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently assessing the impact that this new ASU will have on its revenue recognition upon adoption. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern.” ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This ASU is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the updated guidance to have a material impact on the consolidated financial position, results of operations or cash flows. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Reconciliation of Sales, Operating Profit, Total Assets, Depreciation and Amortization and Capital Expenditures | The following table presents financial information for each reportable segment, as well as for corporate, eliminations and other, and on a consolidated basis: | ||||||||||||||||||||||||
(Dollars in millions) | Net Sales | Operating Profit | |||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Filtration | $ | 967 | $ | 902 | $ | 831 | $ | 150 | $ | 132 | $ | 122 | |||||||||||||
ASA | 430 | 459 | 430 | 34 | 36 | 32 | |||||||||||||||||||
Corporate, eliminations and other | (1 | ) | — | (2 | ) | (43 | ) | (50 | ) | (34 | ) | ||||||||||||||
Consolidated | $ | 1,396 | $ | 1,361 | $ | 1,259 | $ | 141 | $ | 118 | $ | 120 | |||||||||||||
(Dollars in millions) | Total Assets | ||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Filtration | $ | 443 | $ | 405 | |||||||||||||||||||||
ASA | 199 | 220 | |||||||||||||||||||||||
Corporate, eliminations and other(1) | 179 | 243 | |||||||||||||||||||||||
Assets of discontinued operations(2) | — | 141 | |||||||||||||||||||||||
Consolidated | $ | 821 | $ | 1,009 | |||||||||||||||||||||
-1 | Corporate assets consist of cash, deferred income taxes, corporate facility and various other assets that are not specific to an operating segment. | ||||||||||||||||||||||||
-2 | The amounts related to the Chassis group are classified in the current assets of discontinued operations in 2013. | ||||||||||||||||||||||||
Depreciation and | Capital Expenditures | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Filtration | $ | 16 | $ | 15 | $ | 14 | $ | 22 | $ | 22 | $ | 12 | |||||||||||||
ASA | 3 | 3 | 3 | 4 | 5 | 5 | |||||||||||||||||||
Corporate, eliminations and other | 1 | 3 | 5 | — | — | — | |||||||||||||||||||
Total from continuing operations | 20 | 21 | 22 | 26 | 27 | 17 | |||||||||||||||||||
Discontinued operations | — | 1 | 2 | — | 4 | 10 | |||||||||||||||||||
Consolidated | $ | 20 | $ | 22 | $ | 24 | $ | 26 | $ | 31 | $ | 27 | |||||||||||||
Net Sales by Geographic Region | Net sales by geographic region were as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Brazil | $ | 390 | $ | 411 | $ | 389 | |||||||||||||||||||
Canada | 46 | 47 | 47 | ||||||||||||||||||||||
Poland | 167 | 161 | 146 | ||||||||||||||||||||||
Venezuela | 73 | 75 | 48 | ||||||||||||||||||||||
Other Countries | 91 | 89 | 74 | ||||||||||||||||||||||
Total Other Countries | 767 | 783 | 704 | ||||||||||||||||||||||
United States | 629 | 578 | 555 | ||||||||||||||||||||||
Consolidated | $ | 1,396 | $ | 1,361 | $ | 1,259 | |||||||||||||||||||
Long Lived Assets by Geographic Region | Long-lived assets by geographic region were as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013(1) | |||||||||||||||||||||||
China | $ | 18 | $ | 18 | |||||||||||||||||||||
Brazil | 13 | 14 | |||||||||||||||||||||||
Poland | 27 | 30 | |||||||||||||||||||||||
Other Countries | 10 | 12 | |||||||||||||||||||||||
Total other countries | 68 | 74 | |||||||||||||||||||||||
United States | 126 | 130 | |||||||||||||||||||||||
Consolidated | $ | 194 | $ | 204 | |||||||||||||||||||||
-1 | Long-lived assets as of December 31, 2013 exclude $52 million for the Chassis group, which is classified in current assets of discontinued operations. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Chassis [Member] | |||||||||||||
Summary of Net Sales, Income Before Income Tax Provision, Income Tax Provision and Net Income Included Within Income (Loss) from Discontinued Operations | In addition to the gain on the sale discussed above, the following table shows the Chassis group’s net sales, income before income tax provision and net income that are included within Income from discontinued operations, net of tax on the Consolidated Statements of Operations. | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Net sales | $ | 64 | $ | 189 | $ | 194 | |||||||
Income before income tax provision | 5 | 15 | 10 | ||||||||||
Income tax provision | (2 | ) | (10 | ) | (3 | ) | |||||||
Income from discontinued operations, net of tax | $ | 3 | $ | 5 | $ | 7 | |||||||
Schedule of Assets and Liabilities Included in Held for Sale | The following table shows the Chassis group’s assets and liabilities that are included in assets of discontinued operations and liabilities of discontinued operations as of December 31, 2013: | ||||||||||||
(Dollars in millions) | |||||||||||||
Cash | $ | 1 | |||||||||||
Accounts receivable | 9 | ||||||||||||
Inventory | 74 | ||||||||||||
Other current assets | 4 | ||||||||||||
Property, plant and equipment | 8 | ||||||||||||
Goodwill | 22 | ||||||||||||
Other intangible assets | 22 | ||||||||||||
Other assets | 1 | ||||||||||||
Total assets of discontinued operations | $ | 141 | |||||||||||
Accounts payable | $ | 18 | |||||||||||
Other accrued expenses | 12 | ||||||||||||
Accrued payroll and employee benefits | 1 | ||||||||||||
Total liabilities of discontinued operations | $ | 31 | |||||||||||
Brake [Member] | BPI Holdings International, Inc. [Member] | |||||||||||||
Summary of Net Sales, Income Before Income Tax Provision, Income Tax Provision and Net Income Included Within Income (Loss) from Discontinued Operations | The table below summarizes the Brake North America and Asia group’s net sales, loss before income tax provision, income tax provision, income (loss) from discontinued operations, net of tax, net income attributable to noncontrolling interest, net of tax and loss attributable to the discontinued operations. | ||||||||||||
(Dollars in millions) | 2012 | ||||||||||||
Net sales | $ | 582 | |||||||||||
Loss before income tax provision | (91 | ) | |||||||||||
Income tax provision | (33 | ) | |||||||||||
Loss from discontinued operations, net of tax | (124 | ) | |||||||||||
Less: net income attributable to noncontrolling interest, net of tax | 1 | ||||||||||||
Loss from discontinued operations, net of tax | $ | (125 | ) | ||||||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Schedule of Fair Value of Interest Rate Swaps and Our Currency Forward Contract Derivatives | The Company’s fair value of interest rate swaps and its currency forward contract derivatives at December 31, 2014 and 2013 are set forth in the table below: | ||||||||||||
(Dollars in Millions) | Asset | Level 2 | Valuation | ||||||||||
(Liability) | Technique | ||||||||||||
December 31, 2014: | |||||||||||||
Interest rate swap contracts | $ | 2 | $ | 2 | A | ||||||||
Foreign currency forward contracts | — | — | A | ||||||||||
December 31, 2013: | |||||||||||||
Interest rate swap contracts | $ | 11 | $ | 11 | A | ||||||||
Foreign currency forward contracts | — | — | A |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Schedule of Debt | Debt consists of the following: | ||||||||||||
(Dollars in millions) | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
7.75% Senior notes, due May 2021 | $ | 250 | $ | 250 | |||||||||
Term Loan B-1, due April 2016 | 175 | 199 | |||||||||||
Term Loan B-2, due April 2020 | 367 | 465 | |||||||||||
ABL revolver, due April 2018 | — | — | |||||||||||
Other debt(1) | 19 | 23 | |||||||||||
811 | 937 | ||||||||||||
Less: current portion | (19 | ) | (30 | ) | |||||||||
$ | 792 | $ | 907 | ||||||||||
-1 | Other debt primarily consists of $12 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.9 points and $7 million related to the Company’s Venezuela operations as of December 31, 2014. At December 31, 2013, $20 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.9 points and $3 million related to the Company’s China operations. | ||||||||||||
Scheduled Maturities of Debt | Scheduled maturities of debt for each of the next five years and thereafter are as follows: | ||||||||||||
(Dollars in millions) | Amount | ||||||||||||
Year | |||||||||||||
2015 | $ | 19 | |||||||||||
2016 | 175 | ||||||||||||
2017 | — | ||||||||||||
2018 | — | ||||||||||||
2019 | — | ||||||||||||
2020 and thereafter | 617 | ||||||||||||
Total debt | $ | 811 | |||||||||||
Schedule of Fair Value of Debt | The fair value of debt is as follows: | ||||||||||||
Fair Value of Debt at December 31, 2014 | |||||||||||||
(Dollars in millions) | Book Value | Fair Value | Fair Value | ||||||||||
of Debt | Factor | of Debt | |||||||||||
Senior notes, due May 2021(1) | $ | 250 | 102.5 | % | $ | 256 | |||||||
Term Loan B-1, due April 2016(1) | 175 | 97.88 | % | 171 | |||||||||
Term Loan B-2, due April 2020(1) | 367 | 97 | % | 356 | |||||||||
Other debt(2) | 19 | 100 | % | 19 | |||||||||
Total fair value of debt at December 31, 2014 | $ | 802 | |||||||||||
Fair Value of Debt at December 31, 2013 | |||||||||||||
(Dollars in millions) | Book Value | Fair Value | Fair Value | ||||||||||
of Debt | Factor | of Debt | |||||||||||
Senior notes, due May 2021(1) | $ | 250 | 96.06 | % | $ | 240 | |||||||
Term Loan B-1, due April 2016(1) | 199 | 100.63 | % | 200 | |||||||||
Term Loan B-2, due April 2020(1) | 465 | 101.38 | % | 471 | |||||||||
Other debt(2) | 23 | 100 | % | 23 | |||||||||
Total fair value of debt at December 31, 2013 | $ | 934 | |||||||||||
-1 | The fair value of the long-term debt was estimated based on quoted market prices obtained through broker or pricing services and categorized within Level 2 of the hierarchy. The fair value of the Company’s debt that is publicly traded in the secondary market is classified as Level 2 and is based on current market yields obtained through broker or pricing services. | ||||||||||||
-2 | The carrying value of fixed rate short-term debt approximates fair value because of the short term nature of these instruments, and the carrying value of the Company’s current floating rate debt instruments approximates fair value because of the variable interest rates pertaining to those instruments. The fair value of debt is categorized within Level 2 of the hierarchy. | ||||||||||||
Schedule of Interest Rates and Fees | The Company will pay a commission on letters of credit issued under the New ABL Revolver at a rate equal to the applicable spread for loans based upon the LIBOR rate. | ||||||||||||
Level | Average | Base Rate Loans and | LIBOR Loans | ||||||||||
Aggregate | Swingline Loans | ||||||||||||
Availability | |||||||||||||
I | <$ 50,000,000 | 1 | % | 2 | % | ||||||||
II | >$ 50,000,000 | 0.75 | % | 1.75 | % | ||||||||
but < | |||||||||||||
$ 100,000,000 | |||||||||||||
III | >$ 100,000,000 | 0.5 | % | 1.5 | % | ||||||||
Summarizes Deferred Financing Activity | The following table summarizes the deferred financing activity for the Company: | ||||||||||||
(Dollars in millions) | |||||||||||||
Balance at December 31, 2012 | $ | 15 | |||||||||||
Amortization | (4 | ) | |||||||||||
Write-off of unamortized deferred financing costs | (8 | ) | |||||||||||
Deferred financing costs | 15 | ||||||||||||
Balance at December 31, 2013 | $ | 18 | |||||||||||
Amortization | (4 | ) | |||||||||||
Write-off of unamortized deferred financing costs | (1 | ) | |||||||||||
Deferred financing costs | 1 | ||||||||||||
Balance at December 31, 2014 | $ | 14 | |||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Summary of Inventories | A summary of inventories, net is provided in the table below: | ||||||||
(Dollars in millions) | At December 31, | At December 31, | |||||||
2014 | 2013(1) | ||||||||
Raw materials | $ | 63 | $ | 67 | |||||
Work-in-process | 17 | 17 | |||||||
Finished goods | 134 | 137 | |||||||
$ | 214 | $ | 221 | ||||||
-1 | The inventory as of December 31, 2013 excludes $74 million of inventory in the Company’s Chassis group, which is classified in current assets of discontinued operations. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Commitments under Non-Cancelable Operating Leases in Continuing Operations | The Company had future minimum rental commitments under non-cancelable operating leases in continuing operations of $40 million at December 31, 2014, with future rental payments of: | ||||
(Dollars in millions) | Operating | ||||
Leases | |||||
2015 | $ | 9 | |||
2016 | 7 | ||||
2017 | 6 | ||||
2018 | 5 | ||||
2019 | 5 | ||||
Thereafter | 8 | ||||
Total | $ | 40 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Income Tax Provision (Benefit) | The components of the income tax provision (benefit) from continuing operations are as follows: | ||||||||||||
(Dollars in millions) | Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
U.S. federal | $ | — | $ | — | $ | — | |||||||
U.S. state and local | — | — | — | ||||||||||
Non-United States | 16 | 24 | 19 | ||||||||||
Total current | 16 | 24 | 19 | ||||||||||
Deferred: | |||||||||||||
U.S. federal and state | 15 | (8 | ) | 26 | |||||||||
Non-United States | (12 | ) | 6 | — | |||||||||
Total deferred | 3 | (2 | ) | 26 | |||||||||
Income tax provision | $ | 19 | $ | 22 | $ | 45 | |||||||
Components of Income before Income Tax, Equity, Net of Tax and Noncontrolling Interest | The income tax provision was calculated based upon the following components of income from continuing operations before income tax provision, equity in income, net of tax, and noncontrolling interest: | ||||||||||||
(Dollars in millions) | Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (22 | ) | (75 | ) | $ | (27 | ) | |||||
Non-United States | 94 | 104 | 86 | ||||||||||
Income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | $ | 72 | $ | 29 | $ | 59 | |||||||
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consisted of the following: | ||||||||||||
(Dollars in millions) | At December 31, | At December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating and other loss carryforwards | $ | 129 | $ | 130 | |||||||||
Inventory reserves | 4 | 8 | |||||||||||
Expense accruals | 28 | 41 | |||||||||||
Depreciation and amortization | 1 | — | |||||||||||
Other | 6 | 7 | |||||||||||
Subtotal | 168 | 186 | |||||||||||
Valuation allowance | (26 | ) | (31 | ) | |||||||||
Deferred tax assets | 142 | 155 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | — | 11 | |||||||||||
Foreign earnings | 24 | 23 | |||||||||||
Other liabilities | 1 | 4 | |||||||||||
Deferred tax liabilities | 25 | 38 | |||||||||||
Net deferred tax assets | $ | 117 | $ | 117 | |||||||||
Balance Sheet Presentation: | |||||||||||||
Current deferred taxes | $ | 21 | $ | 39 | |||||||||
Deferred income taxes | 97 | 80 | |||||||||||
Deferred employee benefits and other noncurrent liabilities | (1 | ) | (2 | ) | |||||||||
Net deferred tax assets | $ | 117 | $ | 117 | |||||||||
Schedule of Reconciliation of Effective Income Tax Rate | The effective income tax rate differs from the U.S. federal income tax rate for the following reasons: | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 1, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increases (reductions) resulting from: | |||||||||||||
State and local income taxes, net of federal income tax benefit | -1.2 | -5.5 | 1.1 | ||||||||||
Valuation allowance | 1.4 | 6.2 | -1 | ||||||||||
Non-U.S. income | -15.2 | -40.8 | -14.3 | ||||||||||
Foreign Restructuring | -14.1 | — | — | ||||||||||
U.S. Permanent Differences(1) | 15.8 | 66.7 | 45 | ||||||||||
Unrecognized Tax Benefits(2) | -9.5 | 23.6 | — | ||||||||||
Unremitted Earnings | 13.8 | -8.3 | 11.5 | ||||||||||
Miscellaneous items | — | — | -0.8 | ||||||||||
Effective income tax rate | 26 | % | 76.9 | % | 76.5 | % | |||||||
-1 | The U.S. Permanent Differences affecting the tax rate were primarily the result of deemed distributions from foreign subsidiaries. | ||||||||||||
-2 | The 2013 tax rate was negatively impacted by the recognition of an uncertain tax position resulting from an unfavorable ruling impacting the Company’s international operations. | ||||||||||||
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: | ||||||||||||
(Dollars in millions) | |||||||||||||
Balance at January 1, 2012 | $ | 2 | |||||||||||
Increases to tax positions | — | ||||||||||||
Decreases to tax positions | (1 | ) | |||||||||||
Balance at January 1, 2013 | $ | 1 | |||||||||||
Increases to tax positions | 7 | ||||||||||||
Decreases to tax positions | — | ||||||||||||
Balance at January 1, 2014 | $ | 8 | |||||||||||
Increases to tax positions | — | ||||||||||||
Decreases to tax positions | (7 | ) | |||||||||||
Balance at December 31, 2014 | $ | 1 | |||||||||||
Accounts_Receivable_Factoring_
Accounts Receivable Factoring (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Summary of Accounts Receivable Factoring | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
(Dollars in millions) | 2014 | 2013(1) | |||||||
Gross accounts receivable factored | $ | 467 | $ | 541 | |||||
Expenses associated with factoring of receivables | 4 | 4 | |||||||
-1 | Includes amounts related to the Chassis group, which are reflected as Income from discontinued operations, net of tax in the Consolidated Statements of Operations. |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Summary of Goodwill Activity | The following table summarizes Affinia’s goodwill activity, which is related to its Filtration segment and its Chassis group, during 2013 and 2014: | ||||
(Dollars in millions) | |||||
Balance at December 31, 2012 | $ | 24 | |||
Goodwill related to Chassis group reclassified to discontinued operations | (22 | ) | |||
Acquisition | 1 | ||||
Balance at December 31, 2013 | $ | 3 | |||
Balance at December 31, 2014 | $ | 3 | |||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Rollforward of Other Intangibles and Trade Names | A rollforward of the other intangibles and trade names for 2013 and 2014 is shown below: | ||||||||||||||||
(Dollars in millions) | Trade | Customer | Developed | Total | |||||||||||||
Names | Relationships | Technology/ | |||||||||||||||
Other | |||||||||||||||||
Balance at December 31, 2012 | $ | 36 | $ | 43 | $ | 9 | $ | 88 | |||||||||
Amortization | — | (2 | ) | (1 | ) | (3 | ) | ||||||||||
Tax benefit reductions | (1 | ) | (2 | ) | (1 | ) | (4 | ) | |||||||||
Additions | — | 1 | — | 1 | |||||||||||||
Intangibles related to the Chassis group reclassified to current assets of discontinued operations | (5 | ) | (13 | ) | (4 | ) | (22 | ) | |||||||||
Balance at December 31, 2013 | 30 | 27 | 3 | 60 | |||||||||||||
Amortization | — | — | — | — | |||||||||||||
Tax benefit reductions | (2 | ) | (4 | ) | — | (6 | ) | ||||||||||
Balance at December 31, 2014 | $ | 28 | $ | 23 | $ | 3 | $ | 54 | |||||||||
Stock_Incentive_Plan_Tables
Stock Incentive Plan (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Schedule of Stock Plan Balances for Restricted Stock Units, Stock Options, Deferred Compensation Shares and Stock Awards | A table of the 2005 Stock Plan balances for the RSUs, stock options, deferred compensation shares and stock awards is summarized below. | ||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Restricted stock units | 185,365 | 205,508 | |||||||
Stock options | 22,568 | 26,355 | |||||||
Deferred compensation shares | 28,964 | 37,744 | |||||||
Stock award | 163 | 163 | |||||||
Shares available to award | 112,940 | 80,230 | |||||||
Number of shares of common stock subject to awards | 350,000 | 350,000 | |||||||
Schedule of Outstanding Stock Options | A rollforward of outstanding stock options for the years ended December 31, 2012, 2013 and 2014 is as follows: | ||||||||
Options | |||||||||
Outstanding at January 1, 2012 | 26,860 | ||||||||
Forfeited/expired | (4,845 | ) | |||||||
Outstanding at December 31, 2012 | 23,835 | ||||||||
Forfeited/expired | (480 | ) | |||||||
Outstanding at December 31, 2013 | 23,355 | ||||||||
Forfeited/expired | (3,787 | ) | |||||||
Outstanding at December 31, 2014 | 19,568 | ||||||||
Schedule of Weighted-Average Monte Carlo Fair Value Assumptions | The Company’s weighted-average Monte Carlo fair value assumptions include: | ||||||||
Cypress Scenario | IPO Scenario | ||||||||
Effective term | 0.04 years | 0.24 years | |||||||
Fair value of an RSU | $ | 173.83 | $ | 169.3 | |||||
Expected expense (Dollars in millions) | $ | 23 | $ | 23 | |||||
Schedule of Restricted Stock Units | A rollforward of the outstanding RSU awards for the years ended December 31, 2012, 2013 and 2014 is as follows: | ||||||||
RSUs | |||||||||
Outstanding at January 1, 2012 | 242,000 | ||||||||
Granted | — | ||||||||
Forfeited/expired | — | ||||||||
Outstanding at December 31, 2012 | 242,000 | ||||||||
Granted | 106,369 | ||||||||
Forfeited/expired | (142,861 | ) | |||||||
Outstanding at December 31, 2013 | 205,508 | ||||||||
Granted | 61,777 | ||||||||
Cancelled | (157,963 | ) | |||||||
Grant of modified awards | 157,963 | ||||||||
Vested | (1,766 | ) | |||||||
Forfeited/expired | (81,214 | ) | |||||||
Outstanding at December 31, 2014 | 184,305 | ||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property, Plant and Equipment | The following table breaks out the property, plant and equipment in further detail: | ||||||||
December 31, | |||||||||
(Dollars in millions) | 2014 | 2013 | |||||||
Land | $ | 7 | $ | 7 | |||||
Buildings and building fixtures | 49 | 54 | |||||||
Machinery and equipment | 176 | 167 | |||||||
Software | 15 | 17 | |||||||
Construction in progress | 20 | 16 | |||||||
267 | 261 | ||||||||
Less: Accumulated depreciation | (144 | ) | (138 | ) | |||||
$ | 123 | $ | 123 | ||||||
Other_Accrued_Expenses_Tables
Other Accrued Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||
Schedule of Other Accrued Expenses | The following table breaks out the other accrued expenses in further detail: | ||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||
Taxes other than income taxes | $ | 17 | $ | 14 | |||||||||
Interest payable | 3 | 4 | |||||||||||
Return reserve | 5 | 6 | |||||||||||
Accrued taxes payable | 5 | 9 | |||||||||||
Accrued legal and professional fees | 6 | 16 | |||||||||||
Accrued defective product | 1 | 1 | |||||||||||
Accrued selling and marketing | 3 | 2 | |||||||||||
Accrued freight | 3 | 2 | |||||||||||
Accrued commissions expense | 1 | 2 | |||||||||||
Accrued workers compensation | — | 1 | |||||||||||
Accrued restructuring | 3 | 5 | |||||||||||
Other | 11 | 16 | |||||||||||
$ | 58 | $ | 78 | ||||||||||
Schedule of Reconciliation of Changes in Return Reserves | A reconciliation of the changes in return reserves is presented in the following table. | ||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013(1) | 2012(2) | ||||||||||
Beginning balance January 1 | $ | 6 | $ | 8 | $ | 11 | |||||||
Amounts charged to revenue | 6 | 19 | 23 | ||||||||||
Returns processed | (7 | ) | (15 | ) | (26 | ) | |||||||
Classified to discontinued operations | — | (6 | ) | — | |||||||||
Ending balance December 31 | $ | 5 | $ | 6 | $ | 8 | |||||||
-1 | Includes the Chassis group, which is classified as discontinued operations that had amounts charged to revenue of $9 million in 2013 and returns processed of $6 million in 2013. The return reserve as of December 31, 2013 excludes $6 million in the Chassis group, which is classified in current liabilities of discontinued operations. | ||||||||||||
-2 | Excludes the Brake North America and Asia group, which is classified as discontinued operations that had amounts charged to revenue of $15 million in 2012 and returns processed of $21 million in 2012. |
Restructuring_of_Operations_Ta
Restructuring of Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Schedule of Restructuring Charges and Activity | The following table summarizes the restructuring charges and activity for the Company: | ||||||||||||
(Dollars in millions) | Total | ||||||||||||
Balance at December 31, 2012 | $ | 1 | |||||||||||
Charges to expense: | |||||||||||||
Employee termination benefits | 6 | ||||||||||||
Reductions: | |||||||||||||
Cash payments | (2 | ) | |||||||||||
Balance at December 31, 2013 | $ | 5 | |||||||||||
Charges to expense: | |||||||||||||
Employee termination benefits | 8 | ||||||||||||
Reductions: | |||||||||||||
Cash payments | (10 | ) | |||||||||||
Balance at December 31, 2014 | $ | 3 | |||||||||||
Schedule of Restructuring Expenses by Segment | The following table shows the restructuring expenses by reportable segment: | ||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Filtration | $ | 1 | $ | — | $ | — | |||||||
ASA | 1 | — | 1 | ||||||||||
Corporate, eliminations and other | 6 | 6 | — | ||||||||||
Total from continuing operations | $ | 8 | $ | 6 | $ | 1 | |||||||
Discontinued Operations | — | — | 20 | ||||||||||
Total | $ | 8 | $ | 6 | $ | 21 | |||||||
Financial_Information_for_Guar1
Financial Information for Guarantors and Non-Guarantors (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||
Guarantor Condensed Consolidating Statement of Operations | Affinia Group Intermediate Holdings Inc. | ||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 684 | $ | 870 | $ | (158 | ) | $ | 1,396 | ||||||||||||
Cost of sales | — | — | (539 | ) | (675 | ) | 158 | (1,056 | ) | ||||||||||||||||
Gross profit | — | — | 145 | 195 | — | 340 | |||||||||||||||||||
Selling, general and administrative expenses | — | (39 | ) | (68 | ) | (92 | ) | — | (199 | ) | |||||||||||||||
Operating (loss) profit | — | (39 | ) | 77 | 103 | — | 141 | ||||||||||||||||||
Other income and expense, net | — | (3 | ) | (1 | ) | (9 | ) | — | (13 | ) | |||||||||||||||
Interest expense | — | (55 | ) | — | (1 | ) | — | (56 | ) | ||||||||||||||||
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | — | (97 | ) | 76 | 93 | — | 72 | ||||||||||||||||||
Income tax provision | — | (9 | ) | — | (10 | ) | — | (19 | ) | ||||||||||||||||
Equity in (loss) income, net of tax | 82 | 188 | 86 | — | (356 | ) | — | ||||||||||||||||||
Net (loss) income from continuing operations | 82 | 82 | 162 | 83 | (356 | ) | 53 | ||||||||||||||||||
Income from discontinued operations, net of tax | — | — | 26 | 3 | — | 29 | |||||||||||||||||||
Net (loss) income | 82 | 82 | 188 | 86 | (356 | ) | 82 | ||||||||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Net (loss) income attributable to the Company | $ | 82 | $ | 82 | $ | 188 | $ | 86 | $ | (356 | ) | $ | 82 | ||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 628 | $ | 877 | $ | (144 | ) | $ | 1,361 | ||||||||||||
Cost of sales | — | — | (506 | ) | (681 | ) | 144 | (1,043 | ) | ||||||||||||||||
Gross profit | — | — | 122 | 196 | — | 318 | |||||||||||||||||||
Selling, general and administrative expenses | — | (46 | ) | (63 | ) | (91 | ) | — | (200 | ) | |||||||||||||||
Operating (loss) profit | — | (46 | ) | 59 | 105 | — | 118 | ||||||||||||||||||
Loss on extinguishment of debt | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||
Other (loss) income, net | — | (2 | ) | 1 | — | — | (1 | ) | |||||||||||||||||
Interest expense | — | (72 | ) | — | (1 | ) | — | (73 | ) | ||||||||||||||||
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | — | (135 | ) | 60 | 104 | — | 29 | ||||||||||||||||||
Income tax provision | — | 2 | — | (24 | ) | — | (22 | ) | |||||||||||||||||
Equity in income (loss), net of tax | 10 | 143 | 64 | (2 | ) | (217 | ) | (2 | ) | ||||||||||||||||
Net income from continuing operations | 10 | 10 | 124 | 78 | (217 | ) | 5 | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 19 | (14 | ) | — | 5 | ||||||||||||||||||
Net income (loss) | 10 | 10 | 143 | 64 | (217 | ) | 10 | ||||||||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 10 | $ | 10 | $ | 143 | $ | 64 | $ | (217 | ) | $ | 10 | ||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 609 | $ | 997 | $ | (347 | ) | $ | 1,259 | ||||||||||||
Cost of sales | — | — | (490 | ) | (824 | ) | 347 | (967 | ) | ||||||||||||||||
Gross profit | — | — | 119 | 173 | — | 292 | |||||||||||||||||||
Selling, general and administrative expenses | — | (45 | ) | (46 | ) | (81 | ) | — | (172 | ) | |||||||||||||||
Operating (loss) profit | — | (45 | ) | 73 | 92 | — | 120 | ||||||||||||||||||
Loss on extinguishment of debt | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||
Other income (loss), net | — | 3 | (4 | ) | 4 | — | 3 | ||||||||||||||||||
Interest expense | — | (62 | ) | — | (1 | ) | — | (63 | ) | ||||||||||||||||
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | — | (105 | ) | 69 | 95 | — | 59 | ||||||||||||||||||
Income tax provision | — | (21 | ) | 2 | (26 | ) | — | (45 | ) | ||||||||||||||||
Equity in (loss) income, net of tax | (103 | ) | 23 | 653 | 1 | (573 | ) | 1 | |||||||||||||||||
Net (loss) income from continuing operations | (103 | ) | (103 | ) | 724 | 70 | (573 | ) | 15 | ||||||||||||||||
(Loss) Income from discontinued operations, net of tax | — | — | (701 | ) | 584 | — | (117 | ) | |||||||||||||||||
Net (loss) income | (103 | ) | (103 | ) | 23 | 654 | (573 | ) | (102 | ) | |||||||||||||||
Less: net income attributable to noncontrolling interest, net of tax | — | — | — | 1 | — | 1 | |||||||||||||||||||
Net (loss) income attributable to the Company | $ | (103 | ) | $ | (103 | ) | $ | 23 | $ | 653 | $ | (573 | ) | $ | (103 | ) | |||||||||
Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net income (loss) | $ | 82 | $ | 82 | $ | 188 | $ | 86 | $ | (356 | ) | $ | 82 | ||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||||
Interest Rate Swap | (8 | ) | (8 | ) | — | — | 8 | (8 | ) | ||||||||||||||||
Pension liability adjustment | 1 | 1 | — | 1 | (2 | ) | 1 | ||||||||||||||||||
Reclassification adjustments included in net income | 2 | 2 | — | 2 | (4 | ) | 2 | ||||||||||||||||||
Change in foreign currency translation adjustments | (28 | ) | (28 | ) | — | (28 | ) | 56 | (28 | ) | |||||||||||||||
Total other comprehensive income (loss) | (33 | ) | (33 | ) | — | (25 | ) | 58 | (33 | ) | |||||||||||||||
Total comprehensive income (loss) | 49 | 49 | 188 | 61 | (298 | ) | 49 | ||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | 49 | $ | 49 | $ | 188 | $ | 61 | $ | (298 | ) | $ | 49 | ||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net income (loss) | $ | 10 | $ | 10 | $ | 143 | $ | 64 | $ | (217 | ) | $ | 10 | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||
Pension liability adjustment | 1 | 1 | — | 1 | (2 | ) | 1 | ||||||||||||||||||
Change in foreign currency translation adjustments | (19 | ) | (19 | ) | — | (19 | ) | 38 | (19 | ) | |||||||||||||||
Change in fair value of interest rate swaps | 9 | 9 | — | — | (9 | ) | 9 | ||||||||||||||||||
Less: reclassification adjustments included in net income | (2 | ) | (2 | ) | — | — | 2 | (2 | ) | ||||||||||||||||
Total other comprehensive (loss) income | (11 | ) | (11 | ) | — | (18 | ) | 29 | (11 | ) | |||||||||||||||
Total comprehensive (loss) income | (1 | ) | (1 | ) | 143 | 46 | (188 | ) | (1 | ) | |||||||||||||||
Less: comprehensive income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income attributable to the Company | $ | (1 | ) | $ | (1 | ) | $ | 143 | $ | 46 | $ | (188 | ) | $ | (1 | ) | |||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net income (loss) | $ | 10 | $ | 10 | $ | 143 | $ | 64 | $ | (217 | ) | $ | 10 | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||
Pension liability adjustment | 1 | 1 | — | 1 | (2 | ) | 1 | ||||||||||||||||||
Change in foreign currency translation adjustments | (19 | ) | (19 | ) | — | (19 | ) | 38 | (19 | ) | |||||||||||||||
Change in fair value of interest rate swaps | 9 | 9 | — | — | (9 | ) | 9 | ||||||||||||||||||
Less: reclassification adjustments included in net income | (2 | ) | (2 | ) | — | — | 2 | (2 | ) | ||||||||||||||||
Total other comprehensive (loss) income | (11 | ) | (11 | ) | — | (18 | ) | 29 | (11 | ) | |||||||||||||||
Total comprehensive (loss) income | (1 | ) | (1 | ) | 143 | 46 | (188 | ) | (1 | ) | |||||||||||||||
Less: comprehensive income attributable to noncontrolling interest, net of tax | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income attributable to the Company | $ | (1 | ) | $ | (1 | ) | $ | 143 | $ | 46 | $ | (188 | ) | $ | (1 | ) | |||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Net (loss) income | $ | (103 | ) | $ | (103 | ) | $ | 23 | $ | 654 | $ | (573 | ) | $ | (102 | ) | |||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||||
Change in foreign currency translation adjustments | (15 | ) | (15 | ) | — | (15 | ) | 30 | (15 | ) | |||||||||||||||
Total other comprehensive (loss) income | (15 | ) | (15 | ) | — | (15 | ) | 30 | (15 | ) | |||||||||||||||
Total comprehensive (loss) income | (118 | ) | (118 | ) | 23 | 639 | (543 | ) | (117 | ) | |||||||||||||||
Less: comprehensive income attributable to noncontrolling interest, net of tax | — | — | — | 1 | — | 1 | |||||||||||||||||||
Comprehensive (loss) income attributable to the Company | $ | (118 | ) | $ | (118 | ) | $ | 23 | $ | 638 | $ | (543 | ) | $ | (118 | ) | |||||||||
Guarantor Condensed Consolidating Balance Sheet | Affinia Group Intermediate Holdings Inc. | ||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 10 | $ | — | $ | 35 | $ | — | $ | 45 | |||||||||||||
Restricted Cash | — | — | — | 4 | — | 4 | |||||||||||||||||||
Accounts receivable | — | — | 44 | 101 | — | 145 | |||||||||||||||||||
Inventories | — | — | 98 | 116 | — | 214 | |||||||||||||||||||
Other current assets | — | 44 | 1 | 60 | — | 105 | |||||||||||||||||||
Total current assets | — | 54 | 143 | 316 | — | 513 | |||||||||||||||||||
Investments and other assets | — | 121 | 36 | 28 | — | 185 | |||||||||||||||||||
Intercompany investments | (220 | ) | 388 | 749 | — | (917 | ) | — | |||||||||||||||||
Intercompany receivables (payables) | — | 48 | (508 | ) | 460 | — | — | ||||||||||||||||||
Property, plant and equipment, net | — | 1 | 57 | 65 | — | 123 | |||||||||||||||||||
Total assets | $ | (220 | ) | $ | 612 | $ | 477 | $ | 869 | $ | (917 | ) | $ | 821 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | 10 | $ | 70 | $ | 58 | $ | — | $ | 138 | |||||||||||||
Notes payable | — | — | — | 19 | — | 19 | |||||||||||||||||||
Accrued payroll and employee benefits | — | 9 | 4 | 7 | — | 20 | |||||||||||||||||||
Other accrued expenses | — | 15 | 15 | 28 | — | 58 | |||||||||||||||||||
Total current liabilities | — | 34 | 89 | 112 | — | 235 | |||||||||||||||||||
Deferred employee benefits and noncurrent liabilities | — | 5 | — | 8 | — | 13 | |||||||||||||||||||
Long-term debt | — | 792 | — | — | — | 792 | |||||||||||||||||||
Total liabilities | — | 831 | 89 | 120 | — | 1,040 | |||||||||||||||||||
Total shareholder’s (deficit) equity | (220 | ) | (219 | ) | 388 | 749 | (917 | ) | (219 | ) | |||||||||||||||
Total liabilities and equity | $ | (220 | ) | $ | 612 | $ | 477 | $ | 869 | $ | (917 | ) | $ | 821 | |||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 68 | $ | — | $ | 33 | $ | — | $ | 101 | |||||||||||||
Accounts receivable | — | — | 24 | 117 | — | 141 | |||||||||||||||||||
Inventories | — | — | 87 | 134 | — | 221 | |||||||||||||||||||
Other current assets | — | 50 | — | 50 | — | 100 | |||||||||||||||||||
Current assets of discontinued operations | — | — | 138 | 3 | — | 141 | |||||||||||||||||||
Total current assets | — | 118 | 249 | 337 | — | 704 | |||||||||||||||||||
Other non-current assets | — | 122 | 36 | 24 | — | 182 | |||||||||||||||||||
Intercompany investments | (202 | ) | 1,196 | 726 | — | (1,720 | ) | — | |||||||||||||||||
Intercompany (payables) receivables | — | (672 | ) | 247 | 425 | — | — | ||||||||||||||||||
Property, plant and equipment, net | — | 2 | 50 | 71 | — | 123 | |||||||||||||||||||
Total assets | $ | (202 | ) | $ | 766 | $ | 1,308 | $ | 857 | $ | (1,720 | ) | $ | 1,009 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | 6 | $ | 65 | $ | 50 | $ | — | $ | 121 | |||||||||||||
Notes payable | — | — | — | 23 | — | 23 | |||||||||||||||||||
Current maturities of long-term debt | — | 7 | — | — | — | 7 | |||||||||||||||||||
Accrued payroll and employee benefits | — | 8 | 3 | 8 | — | 19 | |||||||||||||||||||
Other accrued expenses | — | 22 | 14 | 42 | — | 78 | |||||||||||||||||||
Current liabilities of discontinued operations | — | — | 29 | 2 | — | 31 | |||||||||||||||||||
Total current liabilities | — | 43 | 111 | 125 | — | 279 | |||||||||||||||||||
Deferred employee benefits and noncurrent liabilities | — | 17 | 1 | 6 | — | 24 | |||||||||||||||||||
Long-term debt | — | 907 | — | — | — | 907 | |||||||||||||||||||
Total liabilities | — | 967 | 112 | 131 | — | 1,210 | |||||||||||||||||||
Total shareholder’s (deficit) equity | (202 | ) | (201 | ) | 1,196 | 726 | (1,720 | ) | (201 | ) | |||||||||||||||
Total liabilities and equity | $ | (202 | ) | $ | 766 | $ | 1,308 | $ | 857 | $ | (1,720 | ) | $ | 1,009 | |||||||||||
Guarantor Condensed Consolidating Statement of Cash Flows | Affinia Group Intermediate Holdings Inc. | ||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Elimination | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 66 | $ | (25 | ) | $ | 13 | $ | 32 | $ | (66 | ) | $ | 20 | |||||||||||
Investing activities | |||||||||||||||||||||||||
Proceeds from sales of assets | — | 149 | — | — | — | 149 | |||||||||||||||||||
Change in restricted cash | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Additions to property, plant, and equipment | — | — | (13 | ) | (13 | ) | — | (26 | ) | ||||||||||||||||
Proceeds from sale of equity method investment | — | 4 | — | — | — | 4 | |||||||||||||||||||
Other investing activities | — | 3 | — | — | — | 3 | |||||||||||||||||||
Net cash provided by (used in) investing activities | — | 156 | (13 | ) | (17 | ) | — | 126 | |||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Repayments of other debt | (66 | ) | — | — | (10 | ) | 66 | (10 | ) | ||||||||||||||||
Proceeds from other debt | — | — | — | 7 | — | 7 | |||||||||||||||||||
Dividend to Shareholder | — | (66 | ) | — | — | — | (66 | ) | |||||||||||||||||
Repayments of Term Loans | — | (123 | ) | — | — | — | (123 | ) | |||||||||||||||||
Net cash (used in) provided by financing activities | (66 | ) | (189 | ) | — | (3 | ) | 66 | (192 | ) | |||||||||||||||
Effect of exchange rates on cash | — | — | — | (10 | ) | — | (10 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | (58 | ) | — | 2 | — | (56 | ) | |||||||||||||||||
Cash and cash equivalents at beginning of period | — | 68 | — | 33 | — | 101 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 10 | $ | — | $ | 35 | $ | — | $ | 45 | |||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non- | Elimination | Consolidated | |||||||||||||||||||
Guarantor | Total | ||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | 352 | $ | 61 | $ | 17 | $ | 21 | $ | (352 | ) | $ | 99 | ||||||||||||
Investing activities | |||||||||||||||||||||||||
Investments in companies, net of cash acquired | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||
Additions to property, plant, and equipment | — | (1 | ) | (17 | ) | (13 | ) | — | (31 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | (1 | ) | (17 | ) | (14 | ) | — | (32 | ) | |||||||||||||||
Financing activities | |||||||||||||||||||||||||
Repayment on Secured Notes | — | (195 | ) | — | — | — | (195 | ) | |||||||||||||||||
Repayment on Subordinated Notes | — | (367 | ) | — | — | — | (367 | ) | |||||||||||||||||
Dividend to Shareholder | (352 | ) | (352 | ) | — | — | 352 | (352 | ) | ||||||||||||||||
Repayment on Term Loans | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||
Payment of deferred financing costs | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||
Proceeds from Term Loans | — | 667 | — | — | — | 667 | |||||||||||||||||||
Proceeds from Senior Notes | — | 250 | — | — | — | 250 | |||||||||||||||||||
Net cash provided by financing activities | — | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||
Effect of exchange rates on cash | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | 45 | — | 5 | — | 50 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | $ | — | $ | 23 | $ | — | $ | 28 | $ | — | $ | 51 | |||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 68 | $ | — | $ | 33 | $ | — | $ | 101 | |||||||||||||
Affinia Group Intermediate Holdings Inc. | |||||||||||||||||||||||||
Guarantor Condensed | |||||||||||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Parent | Issuer | Guarantor | Non-Guarantor | Elimination | Consolidated | |||||||||||||||||||
Total | |||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 151 | $ | (58 | ) | $ | 4 | $ | — | $ | 97 | ||||||||||||
Investing activities | |||||||||||||||||||||||||
Proceeds from sales of assets | — | — | 1 | 3 | — | 4 | |||||||||||||||||||
Additions to property, plant, and equipment | — | — | (8 | ) | (19 | ) | — | (27 | ) | ||||||||||||||||
Net cash used in investing activities | — | — | (7 | ) | (16 | ) | — | (23 | ) | ||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Net decrease in other short-term debt | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||
Payments of other debt | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
Repayment on Secured Notes | — | (23 | ) | — | — | — | (23 | ) | |||||||||||||||||
Net payments of ABL Revolver | — | (110 | ) | — | — | — | (110 | ) | |||||||||||||||||
Cash related to the deconsolidation of BPI | — | — | (11 | ) | — | — | (11 | ) | |||||||||||||||||
Proceeds from BPI’s new credit facility | — | — | 76 | — | — | 76 | |||||||||||||||||||
Payment of deferred financing costs | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||
Purchase of noncontrolling interest | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities | — | (137 | ) | 65 | (6 | ) | — | (78 | ) | ||||||||||||||||
Effect of exchange rates on cash | — | — | — | 1 | — | 1 | |||||||||||||||||||
Change in cash and cash equivalents | — | 14 | — | (17 | ) | — | (3 | ) | |||||||||||||||||
Cash and cash equivalents at beginning of period | — | 9 | — | 45 | — | 54 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 23 | $ | — | $ | 28 | $ | — | $ | 51 | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Percentage of sales to its largest customers | 23.00% | 22.00% | 23.00% |
Percentage of accounts receivable to total accounts receivable | 17.00% | 11.00% | |
Gains (loss) arising from foreign currency transactions | $13,000,000 | $6,000,000 | $2,000,000 |
Cash and cash equivalents description | Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. | ||
Percentage of deferral matched with common stock | 25.00% | ||
Continuing Operations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advertising expenses | 20,000,000 | 19,000,000 | 20,000,000 |
Discontinuing Operations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advertising expenses | 0 | 2,000,000 | 7,000,000 |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of capital required by domestic and foreign subsidiary | 50.00% | ||
Estimated useful life, intangibles | 5 years | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 20 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 5 years | ||
Minimum [Member] | Tooling and Office Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 3 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 3 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, intangibles | 20 years | ||
Research and development expenses | $1,000,000 | $1,000,000 | $1,000,000 |
Maximum [Member] | Building and Building Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 30 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 10 years | ||
Maximum [Member] | Tooling and Office Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 5 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 10 years |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Sales Information [Line Items] | |
Number of operating segments included in continuing operations | 2 |
Filtration [Member] | |
Sales Information [Line Items] | |
Percentage of revenue contributed | 70.00% |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Sales, Operating Profit, Total Assets, Depreciation and Amortization and Capital Expenditures (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Net sales | $1,396 | $1,361 | $1,259 |
Operating Profit | 141 | 118 | 120 |
Depreciation and amortization | 20 | 22 | 24 |
Total assets | 821 | 1,009 | |
Capital Expenditures | 26 | 31 | 27 |
Total from Continuing Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 20 | 21 | 22 |
Capital Expenditures | 26 | 27 | 17 |
Discontinued Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1 | 2 | |
Capital Expenditures | 4 | 10 | |
Assets of Discontinued Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 141 | ||
Operating Segments [Member] | Filtration [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 967 | 902 | 831 |
Operating Profit | 150 | 132 | 122 |
Depreciation and amortization | 16 | 15 | 14 |
Total assets | 443 | 405 | |
Capital Expenditures | 22 | 22 | 12 |
Operating Segments [Member] | ASA [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 430 | 459 | 430 |
Operating Profit | 34 | 36 | 32 |
Depreciation and amortization | 3 | 3 | 3 |
Total assets | 199 | 220 | |
Capital Expenditures | 4 | 5 | 5 |
Corporate, Eliminations and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | -1 | -2 | |
Operating Profit | -43 | -50 | -34 |
Depreciation and amortization | 1 | 3 | 5 |
Total assets | $179 | $243 |
Segment_Information_Net_Sales_
Segment Information - Net Sales by Geographic Region (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Net sales | $1,396 | $1,361 | $1,259 |
Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 390 | 411 | 389 |
Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 46 | 47 | 47 |
Poland [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 167 | 161 | 146 |
Venezuela [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 73 | 75 | 48 |
Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 91 | 89 | 74 |
Total Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 767 | 783 | 704 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $629 | $578 | $555 |
Segment_Information_LongLived_
Segment Information - Long-Lived Assets by Geographic Region (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $194 | $204 |
China [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 18 | 18 |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 13 | 14 |
Poland [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 27 | 30 |
Other Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 10 | 12 |
Total Other Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 68 | 74 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $126 | $130 |
Segment_Information_LongLived_1
Segment Information - Long-Lived Assets by Geographic Region (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $194 | $204 |
Chassis Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $52 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Jun. 28, 2012 | Jun. 30, 2012 | Nov. 30, 2012 | 31-May-14 | Sep. 30, 2014 | 31-May-14 | Sep. 30, 2014 | Jun. 30, 2014 |
Long-Lived Assets Held-for-sale [Line Items] | ||||||||||
Selling price on discontinued operations | $3 | $4 | ||||||||
Fair value of shares available for distribution | -63 | |||||||||
Decrease in noncontrolling interest | 13 | |||||||||
Borrowings under new credit facility | 76 | |||||||||
Cash included in distribution | -11 | |||||||||
Juarez Asset Sale [Member] | ||||||||||
Long-Lived Assets Held-for-sale [Line Items] | ||||||||||
Asset Purchase Agreement sale price | 3 | |||||||||
Asset impairment charge and loss on sale | 6 | |||||||||
BPI Holdings International, Inc. [Member] | ||||||||||
Long-Lived Assets Held-for-sale [Line Items] | ||||||||||
Capital stock distribution | 100.00% | |||||||||
Fair value of shares available for distribution | 63 | |||||||||
Decrease in noncontrolling interest | 13 | |||||||||
Cash dividend received | 70 | |||||||||
Borrowings under new credit facility | 76.5 | |||||||||
Cash included in distribution | 11 | |||||||||
BPI Holdings International, Inc. [Member] | Class A [Member] | ||||||||||
Long-Lived Assets Held-for-sale [Line Items] | ||||||||||
Common stock and to the holders of Holding's | 9.50% | |||||||||
Preferred Stock, par value | $0.00 | |||||||||
Chassis Group [Member] | ||||||||||
Long-Lived Assets Held-for-sale [Line Items] | ||||||||||
Proceeds from the sale of Chassis group | 150 | 150 | ||||||||
Selling price on discontinued operations | 9 | 140 | ||||||||
Contingent consideration | 10 | 10 | ||||||||
Post closing purchase price adjustment | 1 | |||||||||
Pre-tax gain on sale of discontinued operation | 32 | 11 | 21 | |||||||
Capital loss valuation allowance | 18 | |||||||||
Tax expense related to the transaction | $6 |
Discontinued_Operations_Summar
Discontinued Operations - Summary of Net Sales, Income Before Income Tax Provision, Income Tax Provision and Net Income Included Within Income (Loss) from Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income (loss) attributable to the Company | $82 | $10 | ($103) |
Chassis Group [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 64 | 189 | 194 |
Income before income tax provision | 5 | 15 | 10 |
Income tax provision | -2 | -10 | -3 |
Net income (loss) attributable to the Company | $3 | $5 | $7 |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Assets and Liabilities Included in Held for Sale (Detail) (Chassis Group [Member], USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Chassis Group [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash | $1 |
Accounts receivable | 9 |
Inventory | 74 |
Other current assets | 4 |
Property, plant and equipment | 8 |
Goodwill | 22 |
Other intangible assets | 22 |
Other assets | 1 |
Total assets of discontinued operations | 141 |
Accounts payable | 18 |
Other accrued expenses | 12 |
Accrued payroll and employee benefits | 1 |
Total liabilities of discontinued operations | $31 |
Discontinued_Operations_Summar1
Discontinued Operations - Summary of Net Sales, Loss Before Income Tax Provision, Income Tax Provision, Income (Loss) from Discontinued Operations, Net of Tax, Net Income Attributable to Noncontrolling Interest, Net of Tax and Loss Attributable to the Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss from discontinued operations, net of tax | $29 | $5 | ($117) |
Brake North America and Asia Group [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 582 | ||
Loss before income tax provision | -91 | ||
Income tax provision | -33 | ||
Loss from discontinued operations, net of tax | -124 | ||
Less: net income attributable to noncontrolling interest, net of tax | 1 | ||
Loss from discontinued operations, net of tax | ($125) |
Derivatives_Schedule_of_Fair_V
Derivatives - Schedule of Fair Value of Interest Rate Swaps and Our Currency Forward Contract Derivatives (Detail) (Income Approach [Member], Interest Rate Swap [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset (Liability) Fair Value | $2 | $11 |
Level II [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset (Liability) Fair Value | $2 | $11 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 25, 2013 | |
Derivative [Line Items] | ||||
Reclassified from other comprehensive income (loss) into interest expense | $2,000,000 | ($2,000,000) | ||
Gains or losses reclassified from other comprehensive income (loss) into earnings | 0 | 0 | ||
Short-Term Currency Forward Contracts [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | 34,000,000 | 86,000,000 | ||
Short-Term Currency Forward Contracts [Member] | Maximum [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments | -1,000,000 | 1,000,000 | 2,000,000 | |
Currency Forward Contracts [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | 36,000,000 | |||
Currency Forward Contracts [Member] | Maximum [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments | 1,000,000 | |||
Term Loans B [Member] | ||||
Derivative [Line Items] | ||||
Term loan due date | 25-Apr-20 | |||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | $300,000,000 | $300,000,000 | $300,000,000 |
Debt_Schedule_of_Debt_Detail
Debt - Schedule of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Line Items] | ||
Long-term Debt | $811 | $937 |
Less: current portion | -19 | -30 |
Long-term Debt, Excluding Current Maturities | 792 | 907 |
Long-term Debt | 811 | 937 |
Other Debt [Member] | ||
Debt Disclosure [Line Items] | ||
Long-term Debt | 19 | 23 |
Long-term Debt | 19 | 23 |
7.75% Senior Notes, Due May 2021 [Member] | ||
Debt Disclosure [Line Items] | ||
Long-term Debt | 250 | 250 |
Long-term Debt | 250 | 250 |
Term Loan B-1, Due April 2016 [Member] | ||
Debt Disclosure [Line Items] | ||
Long-term Debt | 175 | 199 |
Long-term Debt | 175 | 199 |
Term Loan B-2, Due April 2020 [Member] | ||
Debt Disclosure [Line Items] | ||
Long-term Debt | 367 | 465 |
Long-term Debt | $367 | $465 |
Debt_Schedule_of_Debt_Parenthe
Debt - Schedule of Debt (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2013 | Apr. 25, 2013 |
Debt Disclosure [Line Items] | ||||
Long-term Debt | $811 | $937 | ||
7.75% Senior Notes, Due May 2021 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity date | 1-May-21 | 1-May-21 | ||
Interest rate | 7.75% | 7.75% | 7.75% | 7.75% |
Long-term Debt | 250 | 250 | ||
Term Loan B-1, Due April 2016 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity date | 25-Apr-16 | 25-Apr-16 | ||
Long-term Debt | 175 | 199 | ||
Term Loan B-2, Due April 2020 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity date | 25-Apr-20 | 25-Apr-20 | ||
Long-term Debt | 367 | 465 | ||
ABL Revolver, Due April 2018 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity date | 25-Apr-18 | |||
Other Debt [Member] | ||||
Debt Disclosure [Line Items] | ||||
Long-term Debt | 19 | 23 | ||
Other Debt [Member] | Poland [Member] | ||||
Debt Disclosure [Line Items] | ||||
Long-term Debt | 12 | 20 | ||
Other Debt [Member] | Venezuela [Member] | ||||
Debt Disclosure [Line Items] | ||||
Long-term Debt | 7 | |||
Other Debt [Member] | China [Member] | ||||
Debt Disclosure [Line Items] | ||||
Long-term Debt | $3 | |||
LIBOR plus interest rate | 0.90% | 0.90% |
Debt_Scheduled_Maturities_of_D
Debt - Scheduled Maturities of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Equity Method Investments And Cost Method Investments [Abstract] | ||
2015 | $19 | |
2016 | 175 | |
2017 | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 and thereafter | 617 | |
Long-term Debt | $811 | $937 |
Debt_Schedule_of_Fair_Value_of
Debt - Schedule of Fair Value of Debt, Net of Discount (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Book Value of Debt | $811 | $937 |
Fair Value of Debt | 802 | 934 |
Senior Notes, Due May 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity date | 1-May-21 | |
Book Value of Debt | 250 | 250 |
Fair Value Factor | 102.50% | 96.06% |
Fair Value of Debt | 256 | 240 |
Term Loan B-1, Due April 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity date | 25-Apr-16 | 25-Apr-16 |
Book Value of Debt | 175 | 199 |
Fair Value Factor | 97.88% | 100.63% |
Fair Value of Debt | 171 | 200 |
Term Loan B-2, Due April 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity date | 25-Apr-20 | 25-Apr-20 |
Book Value of Debt | 367 | 465 |
Fair Value Factor | 97.00% | 101.38% |
Fair Value of Debt | 356 | 471 |
7.75% Senior Notes, Due May 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity date | 1-May-21 | 1-May-21 |
Book Value of Debt | 250 | 250 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Book Value of Debt | 19 | 23 |
Fair Value Factor | 100.00% | 100.00% |
Fair Value of Debt | $19 | $23 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | 1-May-14 | Dec. 31, 2014 | Dec. 31, 2012 |
Credit Facilities [Line Items] | |||
Repayment of debt | $10 | $2 | |
Indented amount of debt repayment | 66 | ||
Chassis Group [Member] | |||
Credit Facilities [Line Items] | |||
Cash received from discontinued operation | 149 | ||
Term Loan B-1, Due April 2026 [Member] | |||
Credit Facilities [Line Items] | |||
Repayment of debt | 24 | ||
Term Loan B-2, Due April 2020 [Member] | |||
Credit Facilities [Line Items] | |||
Repayment of debt | $85 |
Debt_Additional_Information_Ne
Debt - Additional Information - New ABL Revolver (Detail) (ABL Revolver [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Apr. 25, 2013 | |
Credit Facilities [Line Items] | ||
Outstanding credit facility | $0 | |
Additional availability of debt | 72,000,000 | |
Outstanding letters of credit | 7,000,000 | |
Borrowing base reserves | 1,000,000 | |
Debt maturity date | 25-Apr-18 | |
Administration fees and fronting fees, percentage | 0.13% | |
Percentage of fee payable increase | 2.00% | |
Line of credit facility borrowing base | 12,500,000 | |
Line of credit facility borrowing base, percentage | 12.50% | |
Cash Dominion: Consecutive trading days threshold | 60 days | |
Covenant: Availability percentage of total borrowing base | 10.00% | |
Covenant: Availability dollar threshold | 10,000,000 | |
Fixed charge coverage ratio | 0.019 | |
Maximum [Member] | ||
Credit Facilities [Line Items] | ||
Unused commitment fee, percentage used if the commitments utilized | 0.25% | |
Percentage of commitment fee | 50.00% | |
Minimum [Member] | ||
Credit Facilities [Line Items] | ||
Unused commitment fee, percentage used if the commitments utilized | 0.38% | |
Fixed charge coverage ratio | 0.01 | |
U.S. Domestic Borrowers [Member] | ||
Credit Facilities [Line Items] | ||
Borrowings | 175,000,000 | |
Sub-limit for letters of credit | 30,000,000 | |
Swingline facility | $15,000,000 |
Debt_Schedule_of_Interest_Rate
Debt - Schedule of Interest Rate and Fees (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Level I [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | $50 |
Level II [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | 100 |
Level II [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | 50 |
Level III [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | $100 |
Base Rate Loans And Swingline Loans [Member] | Level I [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 1.00% |
Base Rate Loans And Swingline Loans [Member] | Level II [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 0.75% |
Base Rate Loans And Swingline Loans [Member] | Level III [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 0.50% |
London Interbank Offered Rate (LIBOR) [Member] | Level I [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 2.00% |
London Interbank Offered Rate (LIBOR) [Member] | Level II [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 1.75% |
London Interbank Offered Rate (LIBOR) [Member] | Level III [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 1.50% |
Debt_Additional_Information_In
Debt - Additional Information - Indenture (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2013 | Apr. 25, 2013 |
Credit Facilities [Line Items] | ||||
Debt outstanding | $811 | $937 | ||
Percentage ownership in guarantor subsidiaries | 100.00% | |||
7.75% Senior Notes, Due May 2021 [Member] | ||||
Credit Facilities [Line Items] | ||||
Accrued interest rate | 7.75% | 7.75% | 7.75% | 7.75% |
Interest payment term | Semi-annually on May 1 and November 1 of each year | |||
Debt maturity date | 1-May-21 | 1-May-21 | ||
Debt outstanding | $250 | $250 | ||
Minimum [Member] | ||||
Credit Facilities [Line Items] | ||||
Percentage of Trustees or holders of principal amount outstanding affected by default | 25.00% |
Debt_Additional_Information_Te
Debt - Additional Information - Term Loans Facility (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Apr. 25, 2013 |
Credit Facilities [Line Items] | ||||
Debt outstanding | $811 | $937 | ||
Proceeds from term loan | 667 | |||
Amortization of debt discount | 1 | |||
Percentage of net proceeds from the incurrence of indebtedness other than permitted indebtedness | 100.00% | |||
Percentage of net proceeds of asset sales including insurance or condemnation proceeds | 100.00% | |||
Percentage of net proceeds of excess cash flow | 50.00% | |||
Voluntary prepayments premium payable on term loan percentage | 1.00% | |||
Interest rate for over due principal in excess of the rate applicable to base rate borrowings | 2.00% | |||
Interest rate in excess of the rate applicable to base rate borrowings | 2.00% | |||
Write-off interest expense for unamortized deferred financing costs associated with the redemption of Secured Notes | 1 | 8 | ||
Total deferred financing costs | 1 | 15 | ||
Senior Notes [Member] | ||||
Credit Facilities [Line Items] | ||||
Write-off interest expense for unamortized deferred financing costs associated with the redemption of Secured Notes | 5 | |||
Total deferred financing costs | 14 | |||
Interest expenses charged on unamortized deferred financing period | 8 years | |||
Maximum [Member] | ||||
Credit Facilities [Line Items] | ||||
Percentage of net proceeds of excess cash flow leverage targets maximum | 25.00% | |||
Minimum [Member] | ||||
Credit Facilities [Line Items] | ||||
Percentage of net proceeds of excess cash flow leverage targets maximum | 0.00% | |||
Term Loan B-1 [Member] | ||||
Credit Facilities [Line Items] | ||||
Debt outstanding | 175 | 200 | ||
Debt offering price percentage | 99.75% | |||
Proceeds from term loan | 199 | |||
Amortization of debt discount | 1 | 1 | ||
Amortization percentage per annum | 1.00% | |||
Voluntary prepayments on term loan | Six months following April 25, 2013 | |||
Interest expenses charged on unamortized deferred financing period | 3 years | |||
Term Loan B-1 [Member] | Base Rate [Member] | ||||
Credit Facilities [Line Items] | ||||
Margin for borrowings under term loan with respect to base rate | 1.75% | |||
Term Loan B-1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Credit Facilities [Line Items] | ||||
Margin for borrowings under term loan with respect to base rate | 2.75% | |||
LIBOR rate floor | 0.75% | |||
Term Loan B-2 [Member] | ||||
Credit Facilities [Line Items] | ||||
Debt outstanding | 367 | 470 | ||
Debt offering price percentage | 99.50% | |||
Proceeds from term loan | 468 | |||
Amortization of debt discount | 2 | 2 | ||
Amortization percentage per annum | 1.00% | |||
Voluntary prepayments on term loan | One year following April 25, 2013 | |||
Interest expenses charged on unamortized deferred financing period | 7 years | |||
Term Loan B-2 [Member] | Base Rate [Member] | ||||
Credit Facilities [Line Items] | ||||
Margin for borrowings under term loan with respect to base rate | 2.50% | |||
Term Loan B-2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Credit Facilities [Line Items] | ||||
Margin for borrowings under term loan with respect to base rate | 3.50% | |||
LIBOR rate floor | 1.25% | |||
ABL Revolver [Member] | ||||
Credit Facilities [Line Items] | ||||
Write-off interest expense for unamortized deferred financing costs associated with the redemption of Secured Notes | 3 | |||
Total deferred financing costs | 1 | |||
Old ABL Revolver [Member] | ||||
Credit Facilities [Line Items] | ||||
Total deferred financing costs | $1 | |||
New ABL Revolver [Member] | ||||
Credit Facilities [Line Items] | ||||
Interest expenses charged on unamortized deferred financing period | 5 years |
Debt_Summarizes_Deferred_Finan
Debt - Summarizes Deferred Financing Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
Beginning Balance | $18 | $15 |
Amortization | -4 | -4 |
Write-off of unamortized deferred financing costs | -1 | -8 |
Deferred financing costs | 1 | 15 |
Ending Balance | $14 | $18 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $63 | $67 |
Work-in-process | 17 | 17 |
Finished goods | 134 | 137 |
Inventories, net | $214 | $221 |
Inventories_Summary_of_Invento1
Inventories - Summary of Inventories (Parenthetical) (Detail) (Chassis Group [Member], USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Chassis Group [Member] | |
Inventory [Line Items] | |
Excluded inventory classified in current assets of discontinued operations | $74 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 15, 2013 | |
USD ($) | USD ($) | USD ($) | Neovia [Member] | Neovia [Member] | Neovia [Member] | |
USD ($) | USD ($) | GBP (£) | ||||
Long-term Purchase Commitment [Line Items] | ||||||
Purchase commitments for property, plant and equipment | $3,000,000 | |||||
Non-cancelable operating leases in operations | 40,000,000 | |||||
Rent expense from continuing operations | 11,000,000 | 10,000,000 | 9,000,000 | |||
Accrued for civil liability | 2,000,000 | 13,000,000 | 10,000,000 | |||
Expected recoveries from third parties associated with outstanding or settled claims | 0 | |||||
Payment to accrued expenses | 11,000,000 | |||||
Unpaid invoices | 5,700,000 | |||||
Aggregated maximum exposure to loss | $15,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Commitments under Non-Cancelable Operating Leases in Continuing Operations (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Leases [Abstract] | |
2015 | $9 |
2016 | 7 |
2017 | 6 |
2018 | 5 |
2019 | 5 |
Thereafter | 8 |
Total | $40 |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Total current | $16 | $24 | $19 |
Deferred: | |||
Total deferred | 3 | -2 | 26 |
Income tax provision | 19 | 22 | 45 |
United States [Member] | |||
Current: | |||
U.S. federal | 0 | 0 | 0 |
U.S. state and local | 0 | 0 | 0 |
Deferred: | |||
U.S. federal and state | 15 | -8 | 26 |
Total Other Countries [Member] | |||
Current: | |||
Non-United States | 16 | 24 | 19 |
Deferred: | |||
Non-United States | ($12) | $6 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income before Income Tax, Equity, Net of Tax and Noncontrolling Interest (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Line Items] | |||
Income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | $72 | $29 | $59 |
United States [Member] | |||
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Line Items] | |||
Income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | -22 | -75 | -27 |
Total Other Countries [Member] | |||
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Line Items] | |||
Income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | $94 | $104 | $86 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating and other loss carryforwards | $129 | $130 |
Inventory reserves | 4 | 8 |
Expense accruals | 28 | 41 |
Depreciation and amortization | 1 | |
Other | 6 | 7 |
Subtotal | 168 | 186 |
Valuation allowance | -26 | -31 |
Deferred tax assets | 142 | 155 |
Deferred tax liabilities: | ||
Depreciation and amortization | 11 | |
Foreign earnings | 24 | 23 |
Other liabilities | 1 | 4 |
Deferred tax liabilities | 25 | 38 |
Net deferred tax assets | 117 | 117 |
Balance Sheet Presentation: | ||
Current deferred taxes | 21 | 39 |
Deferred income taxes | 97 | 80 |
Deferred employee benefits and other noncurrent liabilities | -1 | -2 |
Net deferred tax assets | $117 | $117 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Income Tax [Line Items] | |
Temporary differences resulted upon a repatriation of assets from the subsidiary or a sale or liquidation | $51 |
Unrecognized tax benefits | 1 |
Accrued interest and penalties | 1 |
Accrued income tax expense | 1 |
United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 304 |
State Domestic [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 245 |
State Domestic [Member] | Minimum [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards, expiry date | 2024 |
State Domestic [Member] | Maximum [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards, expiry date | 2034 |
Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 13 |
2024 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 8 |
Net operating loss carryforwards, expiry date | 2024 |
2025 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 12 |
Net operating loss carryforwards, expiry date | 2025 |
2026 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 36 |
Net operating loss carryforwards, expiry date | 2026 |
2027 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 33 |
Net operating loss carryforwards, expiry date | 2027 |
2028 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 74 |
Net operating loss carryforwards, expiry date | 2028 |
2029 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 60 |
Net operating loss carryforwards, expiry date | 2029 |
2030 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 31 |
Net operating loss carryforwards, expiry date | 2030 |
2031 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 20 |
Net operating loss carryforwards, expiry date | 2031 |
2032 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 10 |
Net operating loss carryforwards, expiry date | 2032 |
2034 [Member] | United States [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 20 |
Net operating loss carryforwards, expiry date | 2034 |
2015 [Member] | Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 1 |
Net operating loss carryforwards, expiry date | 2015 |
2016 [Member] | Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 4 |
Net operating loss carryforwards, expiry date | 2016 |
2017 [Member] | Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 3 |
Net operating loss carryforwards, expiry date | 2017 |
2018 [Member] | Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 2 |
Net operating loss carryforwards, expiry date | 2018 |
2019 [Member] | Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 1 |
Net operating loss carryforwards, expiry date | 2019 |
2021 [Member] | Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 1 |
Net operating loss carryforwards, expiry date | 2021 |
2021 and Thereafter [Member] | Total Other Countries [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | $1 |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Increases (reductions) resulting from: | |||
State and local income taxes, net of federal income tax benefit | -1.20% | -5.50% | 1.10% |
Valuation allowance | 1.40% | 6.20% | -1.00% |
Non-U.S. income | -15.20% | -40.80% | -14.30% |
Foreign Restructuring | -14.10% | ||
U.S. Permanent Differences | 15.80% | 66.70% | 45.00% |
Unrecognized Tax Benefits | -9.50% | 23.60% | |
Unremitted Earnings | 13.80% | -8.30% | 11.50% |
Miscellaneous items | -0.80% | ||
Effective income tax rate | 26.00% | 76.90% | 76.50% |
Income_Taxes_Summary_of_Unreco
Income Taxes - Summary 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 | $8 | $1 | $2 |
Increases to tax positions | 7 | ||
Decreases to tax positions | -7 | -1 | |
Ending Balance | $1 | $8 | $1 |
Accounts_Receivable_Factoring_1
Accounts Receivable Factoring - Summary of Accounts Receivable Factoring (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitment, Contingency And Related Party Transactions [Abstract] | ||
Gross accounts receivable factored | $467 | $541 |
Expenses associated with factoring of receivables | $4 | $4 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | |||
Goodwill | $24 | $3 | $3 |
Goodwill recorded in current assets of discontinued operations | 22 | ||
Reduction of goodwill as a result of tax adjustments | -4 | ||
Filtration [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 3 | ||
Chassis [Member] | |||
Goodwill [Line Items] | |||
Goodwill recorded in current assets of discontinued operations | $22 |
Goodwill_Summary_of_Goodwill_A
Goodwill - Summary of Goodwill Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $24 | $3 |
Goodwill related to Chassis group reclassified to discontinued operations | -22 | |
Acquisition | 1 | |
Ending balance | $3 | $3 |
Other_Intangible_Assets_Additi
Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization | $0 | $3 | $6 |
Goodwill | 3 | 3 | 24 |
Tax benefit reduction of intangible assets | -6 | -4 | |
Accumulated amortization related to the continuing operations for the intangibles | 42 | 42 | |
2004 Initial Acquisition [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 0 | ||
Brake North America and Asia Group [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization discontinued operations | 1 | 2 | |
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization for continuing operations | 1 | ||
Amortization expense Period | 20 years | ||
Impairments of other intangible assets | 1 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense Period | 5 years | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization | 2 | ||
Tax benefit reduction of intangible assets | -4 | -2 | |
Weighted average amortization period | 19 years | ||
Developed Technology and Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization | 1 | ||
Tax benefit reduction of intangible assets | ($1) | ||
Weighted average amortization period | 18 years |
Other_Intangible_Assets_Other_
Other Intangible Assets - Other Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Beginning balance | $60 | $88 | |
Amortization | 0 | -3 | -6 |
Tax benefit reductions | -6 | -4 | |
Additions | 1 | ||
Intangibles related to the Chassis group reclassified to current assets of discontinued operations | -22 | ||
Ending balance | 54 | 60 | 88 |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Beginning balance | 30 | 36 | |
Tax benefit reductions | -2 | -1 | |
Intangibles related to the Chassis group reclassified to current assets of discontinued operations | -5 | ||
Ending balance | 28 | 30 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Beginning balance | 27 | 43 | |
Amortization | -2 | ||
Tax benefit reductions | -4 | -2 | |
Additions | 1 | ||
Intangibles related to the Chassis group reclassified to current assets of discontinued operations | -13 | ||
Ending balance | 23 | 27 | |
Developed Technology and Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Beginning balance | 9 | ||
Amortization | -1 | ||
Tax benefit reductions | -1 | ||
Intangibles related to the Chassis group reclassified to current assets of discontinued operations | -4 | ||
Ending balance | $3 | $3 |
Stock_Incentive_Plan_Additiona
Stock Incentive Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2014 | Jul. 20, 2005 | Dec. 02, 2010 | Aug. 25, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
New Awards issued | 350,000 | 350,000 | ||||||
Options awarded | 19,568 | 23,355 | 23,835 | 26,860 | ||||
Vested options | 19,568 | |||||||
Stock options granted | 0 | 0 | 0 | |||||
Selling, general and administrative expenses | $199 | $200 | $172 | |||||
Cypress Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock compensation expense | 15 | |||||||
IPO Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock compensation expense | 15 | |||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options awarded | 22,568 | 26,355 | ||||||
Expiration date of options | 1-Aug-15 | |||||||
Exercise price of options | $62.87 | |||||||
Stock Options [Member] | Scenario, Previously Reported [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Exercise price of options | $100 | |||||||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
New Awards issued | 54,009 | 54,009 | ||||||
Performance and market-based RSUs | 185,365 | 205,508 | 242,000 | 242,000 | ||||
Outstanding RSUs subject to vesting | 10,593 | |||||||
RSUs granted to employees | 61,777 | 106,369 | ||||||
Shares forfeited | 81,214 | 142,861 | ||||||
Restricted stock units | 184,305 | |||||||
Restricted Stock Units [Member] | Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSUs granted to employees | 61,071 | |||||||
Restricted Stock Units [Member] | Modification [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance and market-based RSUs | 201,977 | |||||||
Restricted Stock Units [Member] | After Modification [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
New Awards issued | 117,231 | |||||||
Percentage of performance-based awards | 50.00% | |||||||
Percentage of time-based awards occurring in four annual installments | 50.00% | |||||||
Percent of awards settled via issuance of RSUs | 40.00% | |||||||
Percent of redemption of awards at cash value | 60.00% | |||||||
Restricted Stock Units [Member] | Before Modification [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
New Awards issued | 84,746 | |||||||
Restricted Stock Units [Member] | Cypress Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of minimum common equity interests resulting in payment of cash and marketable securities | 50.00% | |||||||
Selling, general and administrative expenses | 3 | |||||||
Shares forfeited | 92,514 | |||||||
Percentage of anticipated value equal to severance payment | 30.00% | |||||||
Stock compensation expense | 23 | |||||||
Restricted Stock Units [Member] | IPO Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $225 | |||||||
Trading period of common stock (days) | 60 days | |||||||
Stock compensation expense | 23 | |||||||
Restricted Stock Units [Member] | Adjusted IPO Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $225 | |||||||
Restricted Stock Units [Member] | Adjusted Cypress Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $200 | |||||||
Restricted Stock Units [Member] | Performance And Market Based Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance and market-based RSUs | 100,450 | |||||||
Restricted Stock Units [Member] | Time Based Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance and market-based RSUs | 83,855 | |||||||
Restricted Stock Units [Member] | Reduced Vesting Point [Member] | Adjusted IPO Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $159.30 | |||||||
Restricted Stock Units [Member] | Reduced Vesting Point [Member] | Adjusted Cypress Scenario [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $141.60 | |||||||
Equity Classified Restricted Stock Units (RSU) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSUs recognized in earnings | 6 | |||||||
Liability Classified Restricted Stock Units (RSU) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSUs recognized in earnings | 4 | |||||||
Stock Based Compensation Expense [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Selling, general and administrative expenses | 3 | |||||||
Time-Based RSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Estimated fair value grants | 14 | |||||||
Deferred Compensation Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional notional investment | 25.00% | |||||||
Deferred compensation expense | $0 | $2 | $1 | |||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
New Awards issued | 350,000 | |||||||
RSUs vesting period, year | 1-Jan-18 | |||||||
Maximum [Member] | 2005 Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
New Awards issued | 227,000 | 350,000 | 300,000 | |||||
Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSUs vesting period, year | 1-Jan-15 | |||||||
Minimum [Member] | 2005 Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
New Awards issued | 300,000 | 227,000 |
Stock_Incentive_Plan_Schedule_
Stock Incentive Plan - Schedule of Stock Plan Balances for Restricted Stock Units, Stock Options, Deferred Compensation Shares and Stock Awards (Detail) | Dec. 31, 2014 | Nov. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options | 19,568 | 23,355 | 23,835 | 26,860 | |
Shares available to award | 112,940 | 80,230 | |||
Number of shares of common stock subject to awards | 350,000 | 350,000 | |||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units | 185,365 | 205,508 | 242,000 | 242,000 | |
Number of shares of common stock subject to awards | 54,009 | 54,009 | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options | 22,568 | 26,355 | |||
Deferred Compensation Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred compensation shares | 28,964 | 37,744 | |||
Stock Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Award | 163 | 163 |
Stock_Incentive_Plan_Schedule_1
Stock Incentive Plan - Schedule of Outstanding Stock Options (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Beginning Balance | 23,355 | 23,835 | 26,860 |
Forfeited/expired | -3,787 | -480 | -4,845 |
Ending Balance | 19,568 | 23,355 | 23,835 |
Stock_Incentive_Plan_Schedule_2
Stock Incentive Plan - Schedule of Weighted-Average Monte Carlo Fair Value Assumptions (Detail) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Cypress Scenario [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected expense | $15 |
Cypress Scenario [Member] | Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average effective term | 15 days |
Weighted-average fair value of an RSU | $173.83 |
Expected expense | 23 |
IPO Scenario [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected expense | 15 |
IPO Scenario [Member] | Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average effective term | 2 months 27 days |
Weighted-average fair value of an RSU | $169.30 |
Expected expense | $23 |
Stock_Incentive_Plan_Schedule_3
Stock Incentive Plan - Schedule of Restricted Stock Units (Detail) (Restricted Stock Units [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance | 205,508 | 242,000 | 242,000 |
Granted | 61,777 | 106,369 | |
Cancelled | -157,963 | ||
Grant of modified awards | 157,963 | ||
Vested | -1,766 | ||
Forfeited/expired | -81,214 | -142,861 | |
Ending Balance | 185,365 | 205,508 | 242,000 |
Ending Balance | 184,305 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $267 | $261 |
Less: Accumulated depreciation | -144 | -138 |
Property, plant equipment net | 123 | 123 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 7 | 7 |
Buildings and Building Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 49 | 54 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 176 | 167 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 15 | 17 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $20 | $16 |
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 expenses | $20 | $18 | $18 |
Other_Accrued_Expenses_Schedul
Other Accrued Expenses - Schedule of Other Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Other Income and Expenses [Abstract] | |||
Taxes other than income taxes | $17 | $14 | |
Interest payable | 3 | 4 | |
Return reserve | 5 | 6 | |
Accrued taxes payable | 5 | 9 | |
Accrued legal and professional fees | 6 | 16 | |
Accrued defective product | 1 | 1 | |
Accrued selling and marketing | 3 | 2 | |
Accrued freight | 3 | 2 | |
Accrued commissions expense | 1 | 2 | |
Accrued workers compensation | 1 | ||
Accrued restructuring | 3 | 5 | 1 |
Other | 11 | 16 | |
Total | $58 | $78 |
Other_Accrued_Expenses_Schedul1
Other Accrued Expenses - Schedule of Reconciliation of Changes in Return Reserves (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Return Reserves [Member] | |||
Accrued Expenses [Line Items] | |||
Balance at beginning of period | $6 | $8 | $11 |
Amounts charged to revenue | 6 | 19 | 23 |
Returns processed | -7 | -15 | -26 |
Balance at end of period | 5 | 6 | 8 |
Brake North America and Asia Group [Member] | |||
Accrued Expenses [Line Items] | |||
Amounts charged to revenue | 15 | ||
Returns processed | -21 | ||
Brake North America and Asia Group [Member] | Return Reserves [Member] | |||
Accrued Expenses [Line Items] | |||
Classified to discontinued operations | ($6) |
Other_Accrued_Expenses_Schedul2
Other Accrued Expenses - Schedule of Reconciliation of Changes in Return Reserves (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 |
Brake North America and Asia Group [Member] | ||
Accrued Expenses [Line Items] | ||
Amounts charged to revenue | $15 | |
Returns processed | 21 | |
Chassis Group [Member] | ||
Accrued Expenses [Line Items] | ||
Amounts charged to revenue | 9 | |
Returns processed | 6 | |
Return reserve included (excluded) in discontinued operations | $6 |
Restructuring_of_Operations_Ad
Restructuring of Operations - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring | $3 | $5 | $1 |
Corporate Headquarters Closure [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring | 1 | 4 | |
Corporate Headquarters Closure [Member] | Issuer | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring | $1 |
Restructuring_of_Operations_Sc
Restructuring of Operations - Schedule of Restructuring Charges and Activity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $5 | $1 |
Reductions: | ||
Cash payments | -10 | -2 |
Ending balance | 3 | 5 |
Employee Termination Benefits [Member] | ||
Charges to expense: | ||
Restructuring expenses | $8 | $6 |
Restructuring_of_Operations_Sc1
Restructuring of Operations - Schedule of Restructuring Expenses by Segment (Detail) (Reportable Subsegments [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses by segment | $8 | $6 | $21 |
Continuing Operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses by segment | 8 | 6 | 1 |
Filtration [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses by segment | 1 | ||
ASA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses by segment | 1 | 1 | |
Brake North America and Asia Group [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses by segment | 20 | ||
Corporate, Eliminations and Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses by segment | $6 | $6 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2012 | |
Related Party Transactions Supervisory And Other Services [Line Items] | ||||||||||||
Percentage of total net sales from continuing operations | 23.00% | 22.00% | 23.00% | |||||||||
Additional Funding | $1,000,000 | |||||||||||
Agreed to pay quarterly fee | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||
Genuine Parts Company [Member] | ||||||||||||
Related Party Transactions Supervisory And Other Services [Line Items] | ||||||||||||
Percentage of total net sales from continuing operations | 23.00% | 22.00% | 23.00% | |||||||||
Affinia Hong Kong Limited [Member] | ||||||||||||
Related Party Transactions Supervisory And Other Services [Line Items] | ||||||||||||
Ownership Percentage by Affinia Group | 15.00% | 15.00% | 15.00% | |||||||||
Purchase of land | 3,000,000 | |||||||||||
Affinia Qingdao Braking Systems Co. Ltd. [Member] | ||||||||||||
Related Party Transactions Supervisory And Other Services [Line Items] | ||||||||||||
Loan for establishment of new subsidiary | 1,000,000 | |||||||||||
Ownership percentage by AHK | 100.00% | |||||||||||
Related party debt | $1,000,000 | |||||||||||
Longkou Wix Filtration Co. Ltd. [Member] | ||||||||||||
Related Party Transactions Supervisory And Other Services [Line Items] | ||||||||||||
Ownership Percentage by Affinia Group | 15.00% | |||||||||||
Percentage of subsidiary | 100.00% | 100.00% |
Venezuelan_Operations_Addition
Venezuelan Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2010 | Feb. 08, 2013 |
Foreign Operation (Line Items) | |||||
Devaluation Charge | $7 | ||||
Filtration [Member] | |||||
Foreign Operation (Line Items) | |||||
Devaluation Charge | 5 | ||||
ASA [Member] | |||||
Foreign Operation (Line Items) | |||||
Devaluation Charge | 2 | ||||
Venezuela Inflationary Accounting [Member] | |||||
Foreign Operation (Line Items) | |||||
Exceeded percentages of national consumer price index | 100.00% | ||||
Highly inflationary economy | Three-year | ||||
Conversion rate, VEF to U S Dollar | 6.3 | 6.3 | |||
Parallel market rate for U.S Dollar | 5.3 | ||||
Amount of negative impact on pre-tax net income, due to devaluation | $2 | ||||
Venezuela Inflationary Accounting [Member] | Venezuelan Subsidiary [Member] | |||||
Foreign Operation (Line Items) | |||||
Percentage of sales earned from subsidiary | 5.00% | ||||
Subsidiary Assets and liabilities as percentage of consolidated assets and liabilities | 5.00% | ||||
Venezuela Inflationary Accounting [Member] | SICAD 1 [Member] | |||||
Foreign Operation (Line Items) | |||||
Conversion rate, VEF to U S Dollar | 10.7 | ||||
Description of effect of exchange rate change | The Company reflected in its results, a movement in the SICAD 1 rate from 10.7 VEF to 12.0 VEF to 1 U.S. Dollar. | ||||
Venezuela Inflationary Accounting [Member] | SICAD 1 [Member] | Minimum [Member] | |||||
Foreign Operation (Line Items) | |||||
Conversion rate, VEF to U S Dollar | 10.7 | ||||
Venezuela Inflationary Accounting [Member] | SICAD 1 [Member] | Maximum [Member] | |||||
Foreign Operation (Line Items) | |||||
Conversion rate, VEF to U S Dollar | 12 | ||||
Venezuela Inflationary Accounting [Member] | SICAD 2 [Member] | |||||
Foreign Operation (Line Items) | |||||
Conversion rate, VEF to U S Dollar | 50.86 |
Financial_Information_for_Guar2
Financial Information for Guarantors and Non-Guarantors - Additional Information (Detail) (Senior Notes [Member], USD $) | Dec. 31, 2014 | Apr. 25, 2013 |
In Millions, unless otherwise specified | ||
Senior Notes [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Aggregate principal amount | $250 | |
Debt outstanding | $250 |
Financial_Information_for_Guar3
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Statement of Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||
Net sales | $1,396 | $1,361 | $1,259 |
Cost of sales | -1,056 | -1,043 | -967 |
Gross profit | 340 | 318 | 292 |
Selling, general and administrative expenses | -199 | -200 | -172 |
Operating (loss) profit | 141 | 118 | 120 |
Loss on extinguishment of debt | -15 | -1 | |
Other income (loss), net | -13 | -1 | 3 |
Interest expense | -56 | -73 | -63 |
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | 72 | 29 | 59 |
Income tax provision | -19 | -22 | -45 |
Equity in (loss) income, net of tax | -2 | 1 | |
Net (loss) income from continuing operations | 53 | 5 | 15 |
Income (loss) from discontinued operations, net of tax | 29 | 5 | -117 |
Net income (loss) | 82 | 10 | -102 |
Less: net income attributable to noncontrolling interest, net of tax | 1 | ||
Net income (loss) attributable to the Company | 82 | 10 | -103 |
Parent [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in (loss) income, net of tax | 82 | 10 | -103 |
Net (loss) income from continuing operations | 82 | 10 | -103 |
Net income (loss) | 82 | 10 | -103 |
Net income (loss) attributable to the Company | 82 | 10 | -103 |
Issuer [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Selling, general and administrative expenses | -39 | -46 | -45 |
Operating (loss) profit | -39 | -46 | -45 |
Loss on extinguishment of debt | -15 | -1 | |
Other income (loss), net | -3 | -2 | 3 |
Interest expense | -55 | -72 | -62 |
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | -97 | -135 | -105 |
Income tax provision | -9 | 2 | -21 |
Equity in (loss) income, net of tax | 188 | 143 | 23 |
Net (loss) income from continuing operations | 82 | 10 | -103 |
Net income (loss) | 82 | 10 | -103 |
Net income (loss) attributable to the Company | 82 | 10 | -103 |
Guarantor [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 684 | 628 | 609 |
Cost of sales | -539 | -506 | -490 |
Gross profit | 145 | 122 | 119 |
Selling, general and administrative expenses | -68 | -63 | -46 |
Operating (loss) profit | 77 | 59 | 73 |
Other income (loss), net | -1 | 1 | -4 |
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | 76 | 60 | 69 |
Income tax provision | 2 | ||
Equity in (loss) income, net of tax | 86 | 64 | 653 |
Net (loss) income from continuing operations | 162 | 124 | 724 |
Income (loss) from discontinued operations, net of tax | 26 | 19 | -701 |
Net income (loss) | 188 | 143 | 23 |
Net income (loss) attributable to the Company | 188 | 143 | 23 |
Non-Guarantor [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 870 | 877 | 997 |
Cost of sales | -675 | -681 | -824 |
Gross profit | 195 | 196 | 173 |
Selling, general and administrative expenses | -92 | -91 | -81 |
Operating (loss) profit | 103 | 105 | 92 |
Other income (loss), net | -9 | 4 | |
Interest expense | -1 | -1 | -1 |
(Loss) income from continuing operations before income tax provision, equity in income, net of tax and noncontrolling interest | 93 | 104 | 95 |
Income tax provision | -10 | -24 | -26 |
Equity in (loss) income, net of tax | -2 | 1 | |
Net (loss) income from continuing operations | 83 | 78 | 70 |
Income (loss) from discontinued operations, net of tax | 3 | -14 | 584 |
Net income (loss) | 86 | 64 | 654 |
Less: net income attributable to noncontrolling interest, net of tax | 1 | ||
Net income (loss) attributable to the Company | 86 | 64 | 653 |
Eliminations [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | -158 | -144 | -347 |
Cost of sales | 158 | 144 | 347 |
Equity in (loss) income, net of tax | -356 | -217 | -573 |
Net (loss) income from continuing operations | -356 | -217 | -573 |
Net income (loss) | -356 | -217 | -573 |
Net income (loss) attributable to the Company | ($356) | ($217) | ($573) |
Financial_Information_for_Guar4
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | ||||||
Net income (loss) | $82 | $10 | ($102) | |||
Other comprehensive income (loss), net of tax: | ||||||
Change in fair value of interest rate swaps | -8 | [1] | 9 | [1] | ||
Pension liability adjustment | 1 | 1 | ||||
Reclassification adjustments included in net income | 2 | -2 | ||||
Change in foreign currency translation adjustments | -28 | [2] | -19 | [2] | -15 | [2] |
Total other comprehensive income (loss) | -33 | -11 | -15 | |||
Total comprehensive income (loss) | 49 | -1 | -117 | |||
Less: comprehensive income attributable to noncontrolling interest, net of tax | 1 | |||||
Comprehensive income (loss) attributable to the Company | 49 | -1 | -118 | |||
Parent [Member] | ||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | ||||||
Net income (loss) | 82 | 10 | -103 | |||
Other comprehensive income (loss), net of tax: | ||||||
Change in fair value of interest rate swaps | -8 | 9 | ||||
Pension liability adjustment | 1 | 1 | ||||
Reclassification adjustments included in net income | 2 | -2 | ||||
Change in foreign currency translation adjustments | -28 | -19 | -15 | |||
Total other comprehensive income (loss) | -33 | -11 | -15 | |||
Total comprehensive income (loss) | 49 | -1 | -118 | |||
Comprehensive income (loss) attributable to the Company | 49 | -1 | -118 | |||
Issuer [Member] | ||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | ||||||
Net income (loss) | 82 | 10 | -103 | |||
Other comprehensive income (loss), net of tax: | ||||||
Change in fair value of interest rate swaps | -8 | 9 | ||||
Pension liability adjustment | 1 | 1 | ||||
Reclassification adjustments included in net income | 2 | -2 | ||||
Change in foreign currency translation adjustments | -28 | -19 | -15 | |||
Total other comprehensive income (loss) | -33 | -11 | -15 | |||
Total comprehensive income (loss) | 49 | -1 | -118 | |||
Comprehensive income (loss) attributable to the Company | 49 | -1 | -118 | |||
Guarantor [Member] | ||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | ||||||
Net income (loss) | 188 | 143 | 23 | |||
Other comprehensive income (loss), net of tax: | ||||||
Pension liability adjustment | ||||||
Reclassification adjustments included in net income | ||||||
Change in foreign currency translation adjustments | ||||||
Total other comprehensive income (loss) | ||||||
Total comprehensive income (loss) | 188 | 143 | 23 | |||
Comprehensive income (loss) attributable to the Company | 188 | 143 | 23 | |||
Non-Guarantor [Member] | ||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | ||||||
Net income (loss) | 86 | 64 | 654 | |||
Other comprehensive income (loss), net of tax: | ||||||
Pension liability adjustment | 1 | 1 | ||||
Reclassification adjustments included in net income | 2 | |||||
Change in foreign currency translation adjustments | -28 | -19 | -15 | |||
Total other comprehensive income (loss) | -25 | -18 | -15 | |||
Total comprehensive income (loss) | 61 | 46 | 639 | |||
Less: comprehensive income attributable to noncontrolling interest, net of tax | 1 | |||||
Comprehensive income (loss) attributable to the Company | 61 | 46 | 638 | |||
Eliminations [Member] | ||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | ||||||
Net income (loss) | -356 | -217 | -573 | |||
Other comprehensive income (loss), net of tax: | ||||||
Change in fair value of interest rate swaps | 8 | -9 | ||||
Pension liability adjustment | -2 | -2 | ||||
Reclassification adjustments included in net income | -4 | 2 | ||||
Change in foreign currency translation adjustments | 56 | 38 | 30 | |||
Total other comprehensive income (loss) | 58 | 29 | 30 | |||
Total comprehensive income (loss) | -298 | -188 | -543 | |||
Comprehensive income (loss) attributable to the Company | ($298) | ($188) | ($543) | |||
[1] | Net of $1 million tax benefit in 2014 and $4 million tax expense in 2013. | |||||
[2] | Net of $6 million tax expense in 2014, $3 million tax expense in 2013 and $4 million tax expense in 2012. |
Financial_Information_for_Guar5
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $45 | $101 | $51 | $54 |
Restricted Cash | 4 | |||
Accounts receivable | 145 | 141 | ||
Inventories | 214 | 221 | ||
Other current assets | 105 | 100 | ||
Current assets of discontinued operations | 141 | |||
Total current assets | 513 | 704 | ||
Other non-current assets | 182 | |||
Investments and other assets | 185 | |||
Property, plant and equipment, net | 123 | 123 | ||
Total assets | 821 | 1,009 | ||
Current liabilities: | ||||
Accounts payable | 138 | 121 | ||
Notes payable | 19 | 23 | ||
Current maturities of long-term debt | 7 | |||
Accrued payroll and employee benefits | 20 | 19 | ||
Other accrued expenses | 58 | 78 | ||
Current liabilities of discontinued operations | 31 | |||
Total current liabilities | 235 | 279 | ||
Deferred employee benefits and noncurrent liabilities | 13 | 24 | ||
Long-term debt | 792 | 907 | ||
Total liabilities | 1,040 | 1,210 | ||
Total shareholder's (deficit) equity | -219 | -201 | 151 | 347 |
Total liabilities and shareholder's deficit | 821 | 1,009 | ||
Parent [Member] | ||||
Current assets: | ||||
Intercompany investments | -220 | -202 | ||
Total assets | -220 | -202 | ||
Current liabilities: | ||||
Total shareholder's (deficit) equity | -220 | -202 | ||
Total liabilities and shareholder's deficit | -220 | -202 | ||
Issuer [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 10 | 68 | 23 | 9 |
Other current assets | 44 | 50 | ||
Total current assets | 54 | 118 | ||
Other non-current assets | 122 | |||
Investments and other assets | 121 | |||
Intercompany investments | 388 | 1,196 | ||
Intercompany receivables (payables) | 48 | -672 | ||
Property, plant and equipment, net | 1 | 2 | ||
Total assets | 612 | 766 | ||
Current liabilities: | ||||
Accounts payable | 10 | 6 | ||
Current maturities of long-term debt | 7 | |||
Accrued payroll and employee benefits | 9 | 8 | ||
Other accrued expenses | 15 | 22 | ||
Total current liabilities | 34 | 43 | ||
Deferred employee benefits and noncurrent liabilities | 5 | 17 | ||
Long-term debt | 792 | 907 | ||
Total liabilities | 831 | 967 | ||
Total shareholder's (deficit) equity | -219 | -201 | ||
Total liabilities and shareholder's deficit | 612 | 766 | ||
Guarantor [Member] | ||||
Current assets: | ||||
Accounts receivable | 44 | 24 | ||
Inventories | 98 | 87 | ||
Other current assets | 1 | |||
Current assets of discontinued operations | 138 | |||
Total current assets | 143 | 249 | ||
Other non-current assets | 36 | |||
Investments and other assets | 36 | |||
Intercompany investments | 749 | 726 | ||
Intercompany receivables (payables) | -508 | 247 | ||
Property, plant and equipment, net | 57 | 50 | ||
Total assets | 477 | 1,308 | ||
Current liabilities: | ||||
Accounts payable | 70 | 65 | ||
Accrued payroll and employee benefits | 4 | 3 | ||
Other accrued expenses | 15 | 14 | ||
Current liabilities of discontinued operations | 29 | |||
Total current liabilities | 89 | 111 | ||
Deferred employee benefits and noncurrent liabilities | 1 | |||
Total liabilities | 89 | 112 | ||
Total shareholder's (deficit) equity | 388 | 1,196 | ||
Total liabilities and shareholder's deficit | 477 | 1,308 | ||
Non-Guarantor [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 35 | 33 | 28 | 45 |
Restricted Cash | 4 | |||
Accounts receivable | 101 | 117 | ||
Inventories | 116 | 134 | ||
Other current assets | 60 | 50 | ||
Current assets of discontinued operations | 3 | |||
Total current assets | 316 | 337 | ||
Other non-current assets | 24 | |||
Investments and other assets | 28 | |||
Intercompany receivables (payables) | 460 | 425 | ||
Property, plant and equipment, net | 65 | 71 | ||
Total assets | 869 | 857 | ||
Current liabilities: | ||||
Accounts payable | 58 | 50 | ||
Notes payable | 19 | 23 | ||
Accrued payroll and employee benefits | 7 | 8 | ||
Other accrued expenses | 28 | 42 | ||
Current liabilities of discontinued operations | 2 | |||
Total current liabilities | 112 | 125 | ||
Deferred employee benefits and noncurrent liabilities | 8 | 6 | ||
Total liabilities | 120 | 131 | ||
Total shareholder's (deficit) equity | 749 | 726 | ||
Total liabilities and shareholder's deficit | 869 | 857 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Intercompany investments | -917 | -1,720 | ||
Total assets | -917 | -1,720 | ||
Current liabilities: | ||||
Total shareholder's (deficit) equity | -917 | -1,720 | ||
Total liabilities and shareholder's deficit | ($917) | ($1,720) |
Financial_Information_for_Guar6
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net cash (used in) provided by operating activities | $20 | $99 | $97 |
Investing activities | |||
Other investing activities | 3 | 4 | |
Proceeds from sales of assets | 149 | ||
Investments in companies, net of cash acquired | -1 | ||
Change in restricted cash | -4 | ||
Additions to property, plant, and equipment | -26 | -31 | -27 |
Proceeds from sale of equity method investment | 4 | ||
Net cash provided by (used in) investing activities | 126 | -32 | -23 |
Financing activities | |||
Net decrease in other short-term debt | -4 | ||
Repayments of other debt | -10 | -2 | |
Payments of other debt | -2 | ||
Proceeds from other debt | 7 | ||
Repayment on Secured Notes | -195 | -23 | |
Net proceeds from / (payments) to ABL Revolver | -110 | ||
Repayment on Subordinated Notes | -367 | ||
Cash related to the deconsolidation of BPI | -11 | ||
Proceeds from BPI's new credit facility | 76 | ||
Dividend to Shareholder | -66 | -352 | |
Repayment of Term Loans | -123 | -3 | |
Payment of deferred financing costs | -15 | -1 | |
Purchase of noncontrolling interest | -3 | ||
Proceeds from Term Loans | 667 | ||
Proceeds from Senior Notes | 250 | ||
Net cash (used in) provided by financing activities | -192 | -15 | -78 |
Effect of exchange rates on cash | -10 | -2 | 1 |
Change in cash and cash equivalents | -56 | 50 | -3 |
Cash and cash equivalents at beginning of period | 101 | 51 | 54 |
Cash and cash equivalents at end of period | 45 | 101 | 51 |
Parent [Member] | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 66 | 352 | |
Financing activities | |||
Repayments of other debt | -66 | ||
Dividend to Shareholder | -352 | ||
Net cash (used in) provided by financing activities | -66 | ||
Issuer [Member] | |||
Operating activities | |||
Net cash (used in) provided by operating activities | -25 | 61 | 151 |
Investing activities | |||
Other investing activities | 3 | ||
Proceeds from sales of assets | 149 | ||
Additions to property, plant, and equipment | -1 | ||
Proceeds from sale of equity method investment | 4 | ||
Net cash provided by (used in) investing activities | 156 | -1 | |
Financing activities | |||
Repayment on Secured Notes | -195 | -23 | |
Net proceeds from / (payments) to ABL Revolver | -110 | ||
Repayment on Subordinated Notes | -367 | ||
Dividend to Shareholder | -66 | -352 | |
Repayment of Term Loans | -123 | -3 | |
Payment of deferred financing costs | -15 | -1 | |
Purchase of noncontrolling interest | -3 | ||
Proceeds from Term Loans | 667 | ||
Proceeds from Senior Notes | 250 | ||
Net cash (used in) provided by financing activities | -189 | -15 | -137 |
Change in cash and cash equivalents | -58 | 45 | 14 |
Cash and cash equivalents at beginning of period | 68 | 23 | 9 |
Cash and cash equivalents at end of period | 10 | 68 | 23 |
Guarantor [Member] | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 13 | 17 | -58 |
Investing activities | |||
Other investing activities | 1 | ||
Additions to property, plant, and equipment | -13 | -17 | -8 |
Net cash provided by (used in) investing activities | -13 | -17 | -7 |
Financing activities | |||
Cash related to the deconsolidation of BPI | -11 | ||
Proceeds from BPI's new credit facility | 76 | ||
Net cash (used in) provided by financing activities | 65 | ||
Non-Guarantor [Member] | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 32 | 21 | 4 |
Investing activities | |||
Other investing activities | 3 | ||
Investments in companies, net of cash acquired | -1 | ||
Change in restricted cash | -4 | ||
Additions to property, plant, and equipment | -13 | -13 | -19 |
Net cash provided by (used in) investing activities | -17 | -14 | -16 |
Financing activities | |||
Net decrease in other short-term debt | -4 | ||
Repayments of other debt | -10 | ||
Payments of other debt | -2 | ||
Proceeds from other debt | 7 | ||
Net cash (used in) provided by financing activities | -3 | -6 | |
Effect of exchange rates on cash | -10 | -2 | 1 |
Change in cash and cash equivalents | 2 | 5 | -17 |
Cash and cash equivalents at beginning of period | 33 | 28 | 45 |
Cash and cash equivalents at end of period | 35 | 33 | 28 |
Eliminations [Member] | |||
Operating activities | |||
Net cash (used in) provided by operating activities | -66 | -352 | |
Financing activities | |||
Repayments of other debt | 66 | ||
Dividend to Shareholder | 352 | ||
Net cash (used in) provided by financing activities | $66 |