Allison Transmission (ALSN) 10-Q 31 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 15, 2019
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Entity File Number	001-35456
Document Transition Report	false
Entity Registrant Name	ALLISON TRANSMISSION HOLDINGS, INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0414014
Entity Address, Address Line One	One Allison Way
Entity Address, City or Town	Indianapolis
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46222
City Area Code	317
Local Phone Number	242-5000
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	ALSN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		119,231,473
Entity Central Index Key	0001411207
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 152	$ 231
Accounts receivable – net of allowances for doubtful accounts of $1	329	279
Inventories	209	170
Other current assets	58	45
Total Current Assets	748	725
Property, plant and equipment, net	561	466
Intangible assets, net	1,061	1,066
Goodwill	2,040	1,941
Other non-current assets	61	39
TOTAL ASSETS	4,471	4,237
Current Liabilities
Accounts payable	185	169
Product warranty liability	25	26
Current portion of long-term debt	6	0
Deferred revenue	35	34
Other current liabilities	226	197
Total Current Liabilities	477	426
Product warranty liability	29	40
Deferred revenue	103	88
Long-term debt	2,513	2,523
Deferred income taxes	380	329
Other non-current liabilities	226	172
TOTAL LIABILITIES	3,728	3,578
Commitments and contingencies (see NOTE P)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding	0	0
Paid in capital	1,799	1,788
Accumulated deficit	(997)	(1,100)
Accumulated other comprehensive loss, net of tax	(60)	(30)
TOTAL STOCKHOLDERS’ EQUITY	743	659
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	4,471	4,237
Voting Common Stock
STOCKHOLDERS’ EQUITY
Common stock	1	1
TOTAL STOCKHOLDERS’ EQUITY	1	1
Non-voting Common Stock
STOCKHOLDERS’ EQUITY
Common stock	$ 0	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Allowances for doubtful accounts receivables	$ 1	$ 1
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Voting Common Stock
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,880,000,000	1,880,000,000
Common stock, shares issued (in shares)	119,528,870	126,251,266
Common stock, shares outstanding (in shares)	119,528,870	126,251,266
Non-voting Common Stock
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net sales	$ 669	$ 692	$ 2,081	$ 2,066
Cost of sales	321	324	985	982
Gross profit	348	368	1,096	1,084
Selling, general and administrative	85	89	262	274
Engineering — research and development	39	33	107	94
Operating income	224	246	727	716
Interest expense, net	(32)	(30)	(101)	(90)
Other income, net	2	2	8	5
Income before income taxes	194	218	634	631
Income tax expense	(45)	(51)	(137)	(139)
Net income	$ 149	$ 167	$ 497	$ 492
Basic earnings per share attributable to common stockholders (USD per share)	$ 1.24	$ 1.28	$ 4.04	$ 3.66
Diluted earnings per share attributable to common stockholders (USD per share)	$ 1.23	$ 1.27	$ 4.01	$ 3.64
Comprehensive income, net of tax	$ 136	$ 168	$ 467	$ 481

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 497	$ 492
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	65	66
Deferred income taxes	61	46
Depreciation of property, plant and equipment	57	58
Stock-based compensation	10	9
Expenses related to long-term debt refinancing	5	0
Amortization of deferred financing costs	4	5
Allowance for doubtful accounts	1	0
Other	(1)	7
Changes in assets and liabilities:
Accounts receivable	(40)	(117)
Inventories	(20)	(15)
Accounts payable	2	29
Other assets and liabilities	4	25
Net cash provided by operating activities	645	605
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions	(232)	0
Additions of long-lived assets	(91)	(52)
Net cash used for investing activities	(323)	(52)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt	(1,149)	(28)
Issuance of long-term debt	1,148	0
Repurchases of common stock	(331)	(456)
Payments on revolving credit facility	(90)	0
Borrowings on revolving credit facility	90	0
Dividend payments	(55)	(61)
Debt financing fees	(12)	(1)
Taxes paid related to net share settlement of equity awards	(4)	(4)
Proceeds from exercise of stock options	4	21
Net cash used for financing activities	(399)	(529)
Effect of exchange rate changes on cash	(2)	(2)
Net (decrease) increase in cash and cash equivalents	(79)	22
Cash and cash equivalents at beginning of period	231	199
Cash and cash equivalents at end of period	152	221
Supplemental disclosures:
Interest paid	63	68
Income taxes paid	$ 84	$ 80

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Voting Common Stock	Accumulated Other Comprehensive (Loss) Income, net of tax	Accumulated Other Comprehensive (Loss) Income, net of tax	Accumulated Other Comprehensive (Loss) Income, net of tax
Balance at Dec. 31, 2017	$ 689	$ 1	$ (15)	$ 1,758	$ (1,055)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	9			9
Pension and OPEB liability adjustment	(8)		(8)
Foreign currency translation adjustment	(5)		(5)
Available-for-sale securities and interest rate swaps	2		2
Issuance of common stock	17			17
Repurchase of common stock	(456)				(456)
Dividends on common stock	(61)				(61)
Impact of adopting accounting standards	5				5
Net income	492				492
Balance at Sep. 30, 2018	684	1	(26)	1,784	(1,075)
Balance at Jun. 30, 2018	602	1	(27)	1,764	(1,136)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	3			3
Pension and OPEB liability adjustment	(3)		(3)
Available-for-sale securities and interest rate swaps	4		4
Issuance of common stock	17			17
Repurchase of common stock	(86)				(86)
Dividends on common stock	(20)				(20)
Net income	167				167
Balance at Sep. 30, 2018	684	1	(26)	1,784	(1,075)
Balance at Dec. 31, 2018	659	1	(30)	1,788	(1,100)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	10			10
Pension and OPEB liability adjustment	1		1
Foreign currency translation adjustment	(5)		(5)
Available-for-sale securities and interest rate swaps	(26)		(26)
Issuance of common stock	1			1
Repurchase of common stock	(331)				(331)
Dividends on common stock	(55)				(55)
Impact of adopting accounting standards	(8)				(8)
Net income	497				497
Balance at Sep. 30, 2019	743	1	(60)	1,799	(997)
Balance at Jun. 30, 2019	668	1	(47)	1,796	(1,082)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	2			2
Pension and OPEB liability adjustment	(2)		(2)
Foreign currency translation adjustment	(6)		(6)
Available-for-sale securities and interest rate swaps	(5)		(5)
Issuance of common stock	1			1
Repurchase of common stock	(46)				(46)
Dividends on common stock	(18)				(18)
Net income	149				149
Balance at Sep. 30, 2019	$ 743	$ 1	$ (60)	$ 1,799	$ (997)

Overview

Overview	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Overview	NOTE A. OVERVIEW Overview Allison Transmission Holdings, Inc. and its subsidiaries (“Allison” or the “Company”) design and manufacture commercial and defense fully-automatic transmissions. The business was founded in 1915 and has been headquartered in Indianapolis, Indiana since inception. Allison was an operating unit of General Motors Corporation from 1929 until 2007, when Allison once again became a stand-alone company. In March 2012, Allison began trading on the New York Stock Exchange under the symbol, “ALSN”. The Company has 12 different product lines. Although approximately 77% of revenues were generated in North America in 2018, the Company has a global presence by serving customers in Europe, Asia, South America and Africa. The Company serves customers through an independent network of approximately 1,400 independent distributor and dealer locations worldwide.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair statement of the results for the periods presented. The condensed consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated. These condensed consolidated financial statements present the financial position, results of comprehensive income and cash flows of the Company. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission on February 26, 2019. The interim period financial results for the three and nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Estimates include, but are not limited to, sales allowances, government price adjustments, fair market values and future cash flows associated with goodwill, indefinite life intangibles, definite life intangibles, long-lived asset impairment tests, useful lives for depreciation and amortization, warranty liabilities, environmental liabilities, determination of discount and other assumptions for pension and other post-retirement benefit expense, determination of discount rate and period for leases, income taxes and deferred tax valuation allowances, derivative valuation and contingencies. The Company’s accounting policies involve the application of judgments and assumptions made by management that include inherent risks and uncertainties. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur. Business Combinations The Company uses the acquisition method to account for business combinations. The assets acquired and liabilities assumed are recorded at their respective estimated fair value at the date of acquisition. Any excess purchase price over the fair values of the acquired net assets is recorded as goodwill. Determining the fair values of assets acquired and liabilities assumed requires management's judgment and includes the use of estimates with respect to timing and amount of future cash flows, market rate assumptions, actuarial assumptions, appropriate discount rates and other relevant factors. Recently Adopted Accounting Pronouncements In June 2018, the Financial Accounting Standards Board ("FASB") issued authoritative accounting guidance on accounting for nonemployee awards for goods or services received by a company. The Company adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In February 2018, the FASB issued authoritative accounting guidance on transfers of stranded balances in accumulated other comprehensive loss ("AOCL") to retained earnings. The passage of the U.S. Tax Cuts and Jobs Act by the U.S. federal government in December 2017 and existing GAAP requirements to adjust deferred tax assets and liabilities for changes in tax laws or rates created stranded balances in AOCL on deferred tax assets and liabilities previously recorded as a component to AOCL. The guidance applies to companies affected by these stranded balances and allows a reclassification of these balances to retained earnings. The Company adopted this guidance effective January 1, 2019. As a result of the adoption of this guidance, the Company recorded an adjustment that reclassified $7 million of AOCL to retained earnings as of January 1, 2019. In February 2016, the FASB issued authoritative accounting guidance on lease accounting, which guidance was subsequently amended. The guidance requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases not considered short-term leases. Short-term leases are leases with a lease term of 12 months or less as long as the leases do not include options to purchase the underlying assets that the lessee is reasonably certain to exercise. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued additional authoritative guidance on this topic giving lessees an optional adoption approach under which the impact of the adoption of the guidance would be shown as of the date of adoption. Management elected to adopt the guidance using this optional alternative method. The Company adopted this guidance effective January 1, 2019. The Company recorded non-financial right-of-use ("ROU") assets of $14 million, including $1 million of assets transferred from the balance recorded as prepaid lease expense under the prior guidance, and current and non-current lease liabilities of $4 million and $9 million, respectively. The adoption of this guidance did not have a material impact on the Company's opening retained earnings. See Note K, "Leases" for further details. Recently Issued Accounting Pronouncements In August 2018, the FASB issued authoritative accounting guidance on accounting for implementation costs in hosting arrangements to align these costs with existing guidance for internally developed software. The stage of implementation must be assessed to determine if costs should be capitalized or expensed, and capitalized costs should be expensed during the noncancellable term of the agreement. The guidance will be effective for the Company in fiscal year 2020, and the Company does not plan to early adopt. Management has elected to apply the guidance prospectively upon adoption and does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued authoritative accounting guidance amending disclosure requirements for the Company's defined benefit pension plans and other postretirement benefit plan. The guidance will be effective for the Company in fiscal year 2021, and the Company does not plan to early adopt. Management is currently evaluating the impact of this guidance on the Company's consolidated financial statements. In August 2018, the FASB issued authoritative accounting guidance amending disclosure requirements for certain assets subject to fair value measurement. The guidance allows the Company to reduce the amount of disclosure on transfers between Level 1 and Level 2 assets. The guidance will be effective for the Company in fiscal year 2020, and the Company does not plan to early adopt. Management does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued authoritative accounting guidance on the presentation of financial assets at the net amount expected to be collected, which guidance was subsequently amended. The guidance also requires the disclosure of financing receivables disaggregated by the year of origination. The guidance will be effective for the Company in fiscal year 2020. Management is currently reviewing accounting policies for estimating credit losses on financial assets, but does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2019
Revenue From Contract With Customer [Abstract]
Revenue	NOTE C. REVENUE Revenue is recognized as each distinct performance obligation within a contract is satisfied. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company enters into long-term agreements (“LTAs”) and distributor agreements with certain customers. The LTAs and distributor agreements do not include committed volumes until underlying purchase orders are issued; therefore, the Company determined that purchase orders are the contract with a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied, as there is no right of return. Some of the Company's contracts include multiple performance obligations, most commonly the sale of both a transmission and Extended Transmission Coverage ("ETC"). The Company allocates the contract’s transaction price to each performance obligation based on the standalone selling price of each distinct good or service in the contract. The Company may also use volume based discounts and rebates as marketing incentives in the sales of both transmissions and service parts, which are accounted for as variable consideration. The Company records the impact of the incentives as a reduction to revenue when it is determined that the adjustment is not likely to reverse, historically on a quarterly basis. The Company estimates the impact of all other incentives based on the related sales and market conditions in the end market vocation. The Company recorded no adjustments based on variable consideration during the three and nine months ended September 30, 2019 and 2018. Net sales are made on credit terms, generally 30 days, based on an assessment of the customer’s creditworthiness. For certain goods or services, the Company receives consideration prior to satisfying the related performance obligation. Such consideration is recorded as a contract liability in current and non-current Deferred revenue as of September 30, 2019 and December 31, 2018. See Note J, “Deferred Revenue” for more information including the amount of revenue earned during the three and nine months ended September 30, 2019 that had been previously deferred. The Company had no contract assets as of September 30, 2019 and December 31, 2018. The following presents disaggregated revenue by categories that best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 North America On-Highway $ 369 $ 332 $ 1,144 $ 1,014 North America Off-Highway 6 12 29 76 Defense 40 42 109 122 Outside North America On-Highway 99 96 299 288 Outside North America Off-Highway 24 46 91 82 Service Parts, Support Equipment and Other 131 164 409 484 Total Net Sales $ 669 $ 692 $ 2,081 $ 2,066 NOTE J. DEFERRED REVENUE As of September 30, 2019, current and non-current deferred revenue was $35 million and $103 million, respectively. As of September 30, 2018, current and non-current deferred revenue was $35 million and $89 million, respectively. Deferred revenue activity consists of the following (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Beginning balance $ 133 $ 125 $ 122 $ 110 Increases 15 11 44 44 Revenue earned (10 ) (12 ) (28 ) (30 ) Ending balance $ 138 $ 124 $ 138 $ 124 Deferred revenue recorded in current and non-current liabilities related to ETC as of September 30, 2019 was $28 million and $82 million, respectively. Deferred revenue recorded in current and non-current liabilities related to ETC as of September 30, 2018 was $30 million and $73 million, respectively.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventories	NOTE D. INVENTORIES Inventories consisted of the following components (dollars in millions): September 30, 2019 December 31, 2018 Purchased parts and raw materials $ 100 $ 82 Work in progress 17 8 Service parts 56 48 Finished goods 36 32 Total inventories $ 209 $ 170 Inventory components shipped to third parties, primarily cores, parts to re-manufacturers, and parts to contract manufacturers, which the Company has an obligation to buy back, are included in purchased parts and raw materials, with an offsetting liability in Other current liabilities. See NOTE L, “Other Current Liabilities” for more information.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	NOTE E. GOODWILL AND OTHER INTANGIBLE ASSETS As of September 30, 2019 and December 31, 2018, the carrying amount of the Company’s Goodwill was $2,040 million and $1,941 million, respectively. The following presents a summary of other intangible assets (dollars in millions): September 30, 2019 December 31, 2018 Intangible assets, gross Accumulated amortization Intangible assets, net Intangible assets, gross Accumulated amortization Intangible assets, net Other intangible assets: Trade name $ 791 $ — $ 791 $ 790 $ — $ 790 In process research and development 50 — 50 — — — Customer relationships — commercial 839 (653 ) 186 832 (619 ) 213 Proprietary technology 479 (463 ) 16 476 (434 ) 42 Customer relationships — defense 62 (44 ) 18 62 (41 ) 21 Total $ 2,221 $ (1,160 ) $ 1,061 $ 2,160 $ (1,094 ) $ 1,066 As of September 30, 2019 and December 31, 2018, the net carrying value of the Company’s Goodwill and other intangible assets, net was $3,101 million and $3,007 million, respectively. See NOTE T, "Acquisitions" for details on the increase in the Company's Goodwill and other intangible assets, gross. Amortization expense related to other intangible assets for the next five fiscal years is expected to be (dollars in millions): 2020 2021 2022 2023 2024 Amortization expense $ 51 $ 46 $ 45 $ 43 $ 8

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	NOTE F. FAIR VALUE OF FINANCIAL INSTRUMENTS In accordance with the FASB’s authoritative accounting guidance on fair value measurements, fair value is the price (exit price) that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and utilizes the best available information that maximizes the use of observable inputs and minimizes the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy defined by the relevant guidance are as follows: Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, listed equities and publicly traded bonds. Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes financial instruments that are valued using quoted prices in markets that are not active and those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At each balance sheet date, the Company performs an analysis of all instruments subject to authoritative accounting guidance and includes, in Level 3, all of those whose fair value is based on significant unobservable inputs. As of September 30, 2019 and December 31, 2018, the Company did not have any Level 3 financial assets or liabilities. The Company’s assets and liabilities that are measured at fair value include cash equivalents, derivative instruments, assets held in a rabbi trust and a deferred compensation obligation. The Company’s cash equivalents consist of short-term U.S. government backed securities. The Company’s derivative instruments consist of interest rate swaps. The Company’s assets held in the rabbi trust consist principally of publicly available mutual funds and target date retirement funds. The Company’s deferred compensation obligation is directly related to the fair value of assets held in the rabbi trust. The Company’s valuation techniques used to calculate the fair value of cash and cash equivalents, assets held in the rabbi trust and the deferred compensation obligation represent a market approach in active markets for identical assets that qualify as Level 1 in the fair value hierarchy. The Company’s valuation techniques used to calculate the fair value of derivative instruments represent a market approach with observable inputs that qualify as Level 2 in the fair value hierarchy. The Company uses valuations from the issuing financial institutions for the fair value measurement of interest rate swaps. The floating-to-fixed interest rate swaps are based on the London Interbank Offered Rate (“LIBOR”) which is observable at commonly quoted intervals. The fair values are included in other current and non-current assets and liabilities in the Condensed Consolidated Balance Sheets. The following table summarizes the fair value of the Company’s financial assets and (liabilities) as of September 30, 2019 and December 31, 2018 (dollars in millions): Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) TOTAL September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Cash equivalents $ 10 $ 111 $ — $ — $ 10 $ 111 Rabbi trust assets 11 9 — — 11 9 Deferred compensation obligation (11 ) (9 ) — — (11 ) (9 ) Derivative liabilities — — (41 ) (9 ) (41 ) (9 ) Total $ 10 $ 111 $ (41 ) $ (9 ) $ (31 ) $ 102

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt	NOTE G. DEBT Long-term debt and maturities are as follows (dollars in millions): September 30, 2019 December 31, 2018 Long-term debt: Senior Secured Credit Facility Term Loan, variable, due 2022 $ — $ 1,148 Senior Notes, fixed 5.0%, due 2024 1,000 1,000 Senior Secured Credit Facility Term Loan, variable, due 2026 646 — Senior Notes, fixed 4.75%, due 2027 400 400 Senior Notes, fixed 5.875%, due 2029 500 — Total long-term debt $ 2,546 $ 2,548 Less: current maturities of long-term debt 6 — deferred financing costs, net 27 25 Total long-term debt, net $ 2,513 $ 2,523 As of September 30, 2019, the Company had $2,546 million of indebtedness associated with Allison Transmission, Inc.’s (“ATI”), the Company’s wholly-owned subsidiary, 5.0% Senior Notes due September 2024 (“5.0% Senior Notes”), ATI’s 4.75% Senior Notes due October 2027 (“4.75% Senior Notes”), ATI’s 5.875% Senior Notes due June 2029 (“5.875% Senior Notes,” and, together with the 5.0% Senior Notes and 4.75% Senior Notes, the “Senior Notes”) and the Second Amended and Restated Credit Agreement dated as of March 29, 2019 (the “Credit Agreement”), governing ATI’s new term loan facility in the amount of $646 million due March 2026 (“New Term Loan”) and ATI’s new revolving credit facility with commitments in the amount of $600 million due September 2024 (“New Revolving Credit Facility” and, together with the New Term Loan, the “New Senior Secured Credit Facility”). The fair value of the Company’s long-term debt obligations as of September 30, 2019 was $2,626 million. The fair value is based on quoted Level 2 market prices of the Company’s debt as of September 30, 2019. It is not expected that the Company would be able to repurchase a significant amount of its debt at these levels. The difference between the fair value and carrying value of the long-term debt is driven primarily by trends in the financial markets. New Senior Secured Credit Facility In March 2019, the Company and ATI entered into the Credit Agreement to reduce the commitments under the prior term loan due 2022 (“Prior Term Loan”) by $500 million and increase the commitments under the prior $550 million revolving credit facility due 2021 (“Prior Revolving Credit Facility” and, together with the Prior Term Loan, the “Prior Senior Secured Credit Facility”) by $50 million. The New Senior Secured Credit Facility also extended the maturity of the Prior Term Loan from 2022 to 2026 and extended the Prior Revolving Credit Facility termination date from 2021 to 2024. The New Senior Secured Credit Facility replaced the Prior Senior Secured Credit Facility, including the Prior Term Loan and Prior Revolving Credit Facility, on March 29, 2019. The Credit Agreement was treated as a modification to the Prior Senior Secured Credit Facility under GAAP, and thus the Company expensed $5 million of prior deferred financing fees and $1 million of related third party fees in the Condensed Consolidated Statement of Comprehensive Income for the nine months ended September 30, 2019 and recorded $5 million as new deferred financing fees in the Condensed Consolidated Balance Sheet in the first quarter of 2019. In March 2018, ATI entered into an amendment with the term loan lenders under the Prior Senior Secured Credit Facility to lower the applicable margins on the Prior Term Loan by 0.25%. The March 2018 amendment was treated as a modification to the Prior Senior Secured Credit Facility under GAAP, and thus the Company recorded $1 million as new deferred financing fees in the first quarter of 2018. The borrowings under the New Senior Secured Credit Facility are collateralized by a lien on substantially all assets of the Company, ATI and each of the existing and future U.S. subsidiary guarantors, with certain exceptions set forth in the Credit Agreement, and ATI’s capital stock and all of the capital stock or other equity interests held by the Company, ATI and each of ATI’s existing and future U.S. subsidiary guarantors (subject to certain limitations for equity interest of foreign subsidiaries and other exceptions set forth in the Credit Agreement). Interest on the New Term Loan, as of September 30, 2019, is either (a) 2.00% over a LIBOR rate on deposits in U.S. dollars for one-, two-, three- or six-month periods (or twelve-month or shorter periods if, at the time of the borrowing, available from all relevant lenders) (the "LIBOR Rate"), or (b) 1.00% over the greater of the prime lending rate as quoted by the administrative agent, the LIBOR Rate for an interest period of one month plus 1.00% and the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50%, subject to a 1.00% floor (the "Base Rate"). As of September 30, 2019, the Company elected to pay the lowest all-in rate of LIBOR plus the applicable margin, or 4.05%, on the New Term Loan. The Credit Agreement requires minimum quarterly principal payments on the New Term Loan starting with the fiscal quarter ending September 30, 2019, as well as prepayments from certain net cash proceeds of non-ordinary course asset sales and casualty and condemnation events, the incurrence of certain debt and from a percentage of excess cash flow, if applicable. The minimum required quarterly principal payment on the New Term Loan through its maturity date of March 2026 is $2 million. As of September 30, 2019, there had been no payments required for certain net cash proceeds of non-ordinary course asset sales and casualty and condemnation events. The remaining principal balance is due upon maturity. The New Senior Secured Credit Facility also provides a New Revolving Credit Facility, net of an allowance for up to $75 million in outstanding letters of credit commitments. Throughout the nine months ended September 30, 2019, the Company made periodic withdrawals and payments on the New Revolving Credit Facility as part of the Company's debt management plans. The maximum amount outstanding at any time during the nine months ended September 30, 2019 was $90 million. As of September 30, 2019, the Company had $583 million available under the New Revolving Credit Facility, net of $17 million in letters of credit. Borrowings under the New Revolving Credit Facility bear interest at a variable base rate plus an applicable margin based on the Company’s first lien net leverage ratio. When the Company’s first lien net leverage ratio is above 4.00x, interest on the New Revolving Credit Facility is (a) 0.75% over the Base Rate or (b) 1.75% over the LIBOR Rate; when the Company’s first lien net leverage ratio is equal to or less than 4.00x and above 3.50x, interest on the New Revolving Credit Facility is (i) 0.50% over the Base Rate or (ii) 1.50% over the LIBOR Rate; and when the Company’s first lien net leverage ratio is equal to or below 3.50x, interest on the New Revolving Credit Facility is (y) 0.25% over the Base Rate or (z) 1.25% over the LIBOR Rate. As of September 30, 2019, the applicable margin for the New Revolving Credit Facility was 1.25%. In addition, there is an annual commitment fee, based on the Company’s first lien net leverage ratio, on the average unused revolving credit borrowings available under the New Revolving Credit Facility. As of September 30, 2019, the commitment fee is 0.25%. Borrowings under the New Revolving Credit Facility are payable at the option of the Company throughout the term of the New Senior Secured Credit Facility with the balance due in September 2024. The New Senior Secured Credit Facility requires the Company to maintain a specified maximum first lien net leverage ratio of 5.50x when revolving loan commitments remain outstanding on the New Revolving Credit Facility at the end of a fiscal quarter. As of September 30, 2019, the Company had no amounts outstanding under the New Revolving Credit Facility; however, the Company would have been in compliance with the maximum first lien net leverage ratio, achieving a 0.44x ratio. Additionally, within the terms of the New Senior Secured Credit Facility, a first lien net leverage ratio at or below 4.00x results in the elimination of excess cash flow payments on the New Senior Secured Credit Facility for the applicable year. In addition, the Credit Agreement, among other things, includes customary restrictions (subject to certain exceptions) on the Company’s ability to incur certain indebtedness, grant certain liens, make certain investments, engage in acquisitions, consolidations and mergers, declare or pay certain dividends or repurchase shares of the Company’s common stock. As of September 30, 2019, the Company was in compliance with all covenants under the Credit Agreement. 5.0% Senior Notes The 5.0% Senior Notes are unsecured and are guaranteed by each of ATI’s domestic subsidiaries that is a borrower under or guarantees the New Senior Secured Credit Facility and are unconditionally guaranteed, jointly and severally, by any of ATI’s future domestic subsidiaries that are borrowers under or guarantee the New Senior Secured Credit Facility. None of ATI’s domestic subsidiaries currently guarantee its obligations under the New Senior Secured Credit Facility, and therefore none of ATI’s domestic subsidiaries currently guarantee the 5.0% Senior Notes. The indenture governing the 5.0% Senior Notes contains negative covenants restricting or limiting the Company’s ability to, among other things: incur or guarantee additional indebtedness, incur liens, pay dividends on, redeem or repurchase the Company’s capital stock, make certain investments, permit payment or dividend restrictions on certain of the Company’s subsidiaries, sell assets, engage in certain transactions with affiliates, and consolidate or merge or sell all or substantially all of the Company’s assets. As of September 30, 2019, the Company was in compliance with all covenants under the indenture governing the 5.0% Senior Notes. 4.75% Senior Notes The 4.75% Senior Notes are unsecured and are guaranteed by each of ATI’s domestic subsidiaries that is a borrower under or guarantees the New Senior Secured Credit Facility and are unconditionally guaranteed, jointly and severally, by any of ATI’s future domestic subsidiaries that are borrowers under or guarantee the New Senior Secured Credit Facility. None of ATI’s domestic subsidiaries currently guarantee its obligations under the New Senior Secured Credit Facility, and therefore none of ATI’s domestic subsidiaries currently guarantee the 4.75% Senior Notes. The indenture governing the 4.75% Senior Notes contains negative covenants restricting or limiting the Company’s ability to, among other things: incur or guarantee additional indebtedness, incur liens, pay dividends on, redeem or repurchase the Company’s capital stock, make certain investments, permit payment or dividend restrictions on certain of the Company’s subsidiaries, sell assets, engage in certain transactions with affiliates, and consolidate or merge or sell all or substantially all of the Company’s assets. As of September 30, 2019, the Company was in compliance with all covenants under the indenture governing the 4.75% Senior Notes. 5.875% Senior Notes In March 2019, ATI completed an offering of $500 million of the 5.875% Senior Notes. The 5.875% Senior Notes were offered in a private placement exempt from registration under the Securities Act of 1933, as amended. The net proceeds from the offering, together with borrowings under the New Senior Secured Credit Facility and cash on hand, were used to repay all of the outstanding borrowings under the Prior Term Loan plus accrued and unpaid interest and related transaction expenses. As a result of the offering, the Company recorded $6 million as deferred financing fees in the Condensed Consolidated Balance Sheet in the first quarter of 2019. The 5.875% Senior Notes are unsecured and are guaranteed by each of ATI’s domestic subsidiaries that is a borrower under or guarantees the New Senior Secured Credit Facility and are unconditionally guaranteed, jointly and severally, by any of ATI’s future domestic subsidiaries that are borrowers under or guarantee the New Senior Secured Credit Facility. None of ATI’s domestic subsidiaries currently guarantee its obligations under the New Senior Secured Credit Facility, and therefore none of ATI’s domestic subsidiaries currently guarantee the 5.875% Senior Notes. The indenture governing the 5.875% Senior Notes contains negative covenants restricting or limiting the Company’s ability to, among other things: incur or guarantee additional indebtedness, incur liens, pay dividends on, redeem or repurchase the Company’s capital stock, make certain investments, permit payment or dividend restrictions on certain of the Company’s subsidiaries, sell assets, engage in certain transactions with affiliates, and consolidate or merge or sell all or substantially all of the Company’s assets. As of September 30, 2019, the Company was in compliance with all covenants under the indenture governing the 5.875% Senior Notes.

Derivatives

Derivatives	9 Months Ended
	Sep. 30, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivatives	NOTE H. DERIVATIVES The Company is subject to interest rate risk related to the New Senior Secured Credit Facility and enters into interest rate swaps that are based on LIBOR to manage a portion of this exposure. The interest rate swaps are designated as cash flow hedges that qualify for hedge accounting under the hypothetical derivative method. Fair value adjustments are recorded as a component of AOCL in the Condensed Consolidated Balance Sheets. Balances in AOCL are reclassified to earnings when transactions related to the underlying risk are settled. During the first quarter of 2019, the Company entered into $250 million of interest rate swaps and designated them as cash flow hedges under the hypothetical derivative method. As of September 30, 2019, the Company held interest rate swaps effective from September 2019 to September 2025 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 3.04%, interest rate swaps effective from September 2019 to September 2022 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 3.01% and interest rate swaps effective from September 2022 to September 2025 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 2.82%. See NOTE F “Fair Value of Financial Instruments” for information regarding the fair value of the Company’s interest rate swaps. The following tabular disclosures further describe the Company’s interest rate derivatives qualifying and designated for hedge accounting and their impact on the financial condition of the Company (dollars in millions): Fair Value Balance Sheet Location September 30, 2019 December 31, 2018 Derivatives designated as hedging instruments: Interest rate swaps Other current liabilities $ 7 $ 1 Other non-current liabilities 34 8 Total derivatives designated as hedging instruments $ 41 $ 9 The balance of derivative losses recorded in AOCL as of September 30, 2019 was $41 million. See NOTE O “Accumulated Other Comprehensive Loss” for information regarding activity recorded as a component of AOCL during the three and nine months ended September 30, 2019. As of September 30, 2019, the Company had $6 million of derivative losses recorded in AOCL expected to be reclassified to earnings within the next twelve months.

Product Warranty Liabilities

Product Warranty Liabilities	9 Months Ended
	Sep. 30, 2019
Guarantees And Product Warranties [Abstract]
Product Warranty Liabilities	NOTE I. PRODUCT WARRANTY LIABILITIES As of September 30, 2019, current and non-current product warranty liabilities were $25 million and $29 million, respectively. As of September 30, 2018, current and non-current product warranty liabilities were $26 million and $41 million, respectively. Product warranty liability activities consist of the following (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Beginning balance $ 59 $ 65 $ 66 $ 55 Payments (7 ) (6 ) (19 ) (25 ) Increase in liability (warranty issued during period) 5 9 16 30 Net adjustments to liability (3 ) (1 ) (9 ) 7 Ending balance $ 54 $ 67 $ 54 $ 67

Deferred Revenue

Deferred Revenue	9 Months Ended
	Sep. 30, 2019
Revenue Recognition And Deferred Revenue [Abstract]
Revenue	NOTE C. REVENUE Revenue is recognized as each distinct performance obligation within a contract is satisfied. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company enters into long-term agreements (“LTAs”) and distributor agreements with certain customers. The LTAs and distributor agreements do not include committed volumes until underlying purchase orders are issued; therefore, the Company determined that purchase orders are the contract with a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied, as there is no right of return. Some of the Company's contracts include multiple performance obligations, most commonly the sale of both a transmission and Extended Transmission Coverage ("ETC"). The Company allocates the contract’s transaction price to each performance obligation based on the standalone selling price of each distinct good or service in the contract. The Company may also use volume based discounts and rebates as marketing incentives in the sales of both transmissions and service parts, which are accounted for as variable consideration. The Company records the impact of the incentives as a reduction to revenue when it is determined that the adjustment is not likely to reverse, historically on a quarterly basis. The Company estimates the impact of all other incentives based on the related sales and market conditions in the end market vocation. The Company recorded no adjustments based on variable consideration during the three and nine months ended September 30, 2019 and 2018. Net sales are made on credit terms, generally 30 days, based on an assessment of the customer’s creditworthiness. For certain goods or services, the Company receives consideration prior to satisfying the related performance obligation. Such consideration is recorded as a contract liability in current and non-current Deferred revenue as of September 30, 2019 and December 31, 2018. See Note J, “Deferred Revenue” for more information including the amount of revenue earned during the three and nine months ended September 30, 2019 that had been previously deferred. The Company had no contract assets as of September 30, 2019 and December 31, 2018. The following presents disaggregated revenue by categories that best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 North America On-Highway $ 369 $ 332 $ 1,144 $ 1,014 North America Off-Highway 6 12 29 76 Defense 40 42 109 122 Outside North America On-Highway 99 96 299 288 Outside North America Off-Highway 24 46 91 82 Service Parts, Support Equipment and Other 131 164 409 484 Total Net Sales $ 669 $ 692 $ 2,081 $ 2,066 NOTE J. DEFERRED REVENUE As of September 30, 2019, current and non-current deferred revenue was $35 million and $103 million, respectively. As of September 30, 2018, current and non-current deferred revenue was $35 million and $89 million, respectively. Deferred revenue activity consists of the following (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Beginning balance $ 133 $ 125 $ 122 $ 110 Increases 15 11 44 44 Revenue earned (10 ) (12 ) (28 ) (30 ) Ending balance $ 138 $ 124 $ 138 $ 124 Deferred revenue recorded in current and non-current liabilities related to ETC as of September 30, 2019 was $28 million and $82 million, respectively. Deferred revenue recorded in current and non-current liabilities related to ETC as of September 30, 2018 was $30 million and $73 million, respectively.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	NOTE K. LEASES Adoption of New Lease Guidance New authoritative guidance for leases was adopted by the Company effective January 1, 2019 using the optional transition method. Balances as of September 30, 2019 and results for the three and nine months ended September 30, 2019 are presented in conformity with the new authoritative accounting guidance, while prior period balances and results are presented in conformity with prior accounting guidance for leases. The Company recognized ROU assets for operating leases of $14 million and current and non-current operating lease liabilities of $4 million and $9 million, respectively, as of January 1, 2019. At the time of adoption, the Company was not party to any finance leases. The Company elected practical expedients allowed by this guidance which included not reassessing existing or expired contracts for leases, not reassessing existing or expired leases for classification, not reassessing indirect costs for any existing leases and using hindsight when determining lease terms. Lessee Accounting Contracts are assessed by the Company to determine if the contract conveys the right to control an identified asset in exchange for consideration during a period of time. The Company classifies all identified leases as operating or finance leases. As of September 30, 2019, the Company was not a party to any finance leases. Contracts that contain leases are assessed to determine if the consideration in the contract is related to a lease component, non-lease component or other components not related to the lease. Lease components are recorded as ROU assets and lease liabilities while any non-lease component is expensed as incurred. The consideration in the contract related to other components not related to the lease is allocated among the lease component and the non-lease component, as applicable, based on the stand-alone selling price of the lease and non-lease components. Certain lease contracts may contain an option to extend or terminate the lease. The Company considers the economic impact of extension and termination options by contract. If the Company concludes it is reasonably certain an option will be exercised, that option is included in the lease term and impacts the amount recorded as an ROU asset and lease liability upon inception of the contract. The Company's lease liability is determined by discounting the future cash flows over the lease period. The Company determines its discount rates utilizing current secured financing rates based on the length of the lease period plus the Company's margin over LIBOR on the New Term Loan. The Company believes this rate effectively represents a borrowing rate the Company could obtain on a debt instrument possessing similar terms as the lease. The lease liability is classified between current and non-current liabilities based on the terms of the underlying leases. The weighted average discount rate on operating leases as of September 30, 2019 was 4.35%. As of December 31, 2018, future undiscounted payments under operating leases (as defined by prior guidance) are expected to be as follows for the next five annual periods and thereafter following December 31, 2018: December 31, 2018 2019 $ 4 2020 3 2021 2 2022 1 2023 1 Thereafter — Total $ 11 As of September 30, 2019, the Company recorded current and non-current operating lease liabilities of $4 million and $16 million, respectively. The following table reconciles total operating lease liabilities as of September 30, 2019 to future undiscounted cash flows for operating leases: September 30, 2019 2019 $ 1 2020 5 2021 4 2022 3 2023 3 Thereafter 9 Total lease payments $ 25 Less: Interest 5 Present value of lease liabilities $ 20 ROU assets are calculated as the related lease liability adjusted for lease incentives, prepayments and the effect of escalating lease payments on period expense. The below table depicts the ROU assets held by the Company based on the underlying asset: September 30, 2019 Buildings $ 19 Land 1 Vehicles 1 Equipment — Total right-of-use assets $ 21 The weighted average remaining lease term as of September 30, 2019 was 6.89 years. Operating lease expense was $1 million and $4 million for the three and nine months ended September 30, 2019, respectively, and recorded within Selling, general and administrative expense and Engineering - research and development on the Company's Condensed Consolidated Statements of Comprehensive Income. There was no short-term operating lease expense for the three and nine months ended September 30, 2019. The calculation of the Company's ROU assets and lease liabilities did not include cash consideration as of September 30, 2019. During the three and nine months ended September 30, 2019, the Company recorded $2 million and $10 million of new ROU assets obtained through non-cash transactions, respectively.

Other Current Liabilities

Other Current Liabilities	9 Months Ended
	Sep. 30, 2019
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	NOTE L. OTHER CURRENT LIABILITIES Other current liabilities consist of the following (dollars in millions): As of September 30, 2019 As of December 31, 2018 Payroll and related costs $ 76 $ 81 Accrued interest payable 51 19 Sales allowances 30 39 Vendor buyback obligation 17 15 Taxes payable 11 10 Defense price reduction reserve 9 9 Derivative liabilities 7 1 Lease liability 4 — Vendor liability 3 5 Non-trade payables 3 3 Other accruals 15 15 Total $ 226 $ 197

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2019
Postemployment Benefits [Abstract]
Employee Benefit Plans	NOTE M. EMPLOYEE BENEFIT PLANS Components of net periodic benefit cost (credit) consist of the following (dollars in millions): Pension Plans Post-retirement Benefits Three months ended September 30, Three months ended September 30, 2019 2018 2019 2018 Net periodic benefit cost: Service cost $ 2 $ 3 $ — $ — Interest cost 1 2 1 1 Expected return on assets (1 ) (2 ) — — Prior service credit — — (3 ) (3 ) Net periodic benefit cost (credit) $ 2 $ 3 $ (2 ) $ (2 ) Pension Plans Post-retirement Benefits Nine months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net periodic benefit cost: Service cost $ 7 $ 9 $ 1 $ 1 Interest cost 5 5 3 3 Expected return on assets (6 ) (6 ) — — Prior service credit — — (10 ) (10 ) Net periodic benefit cost (credit) $ 6 $ 8 $ (6 ) $ (6 ) The components of net periodic benefit cost (credit) other than the service cost component are included in Other income, net in the Condensed Consolidated Statements of Comprehensive Income.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	NOTE N. INCOME TAXES For the three and nine months ended September 30, 2019, the Company recorded total tax expense of $45 million and $137 million, respectively. The effective tax rate for the three and nine months ended September 30, 2019 was 23% and 22%, respectively. For the three and nine months ended September 30, 2018, the Company recorded total tax expense of $51 million and $139 million, respectively. The effective tax rate for the three and nine months ended September 30, 2018 was 23% and 22%, respectively. The need to establish a valuation allowance against the deferred tax assets is assessed periodically based on a more-likely-than-not realization threshold, in accordance with authoritative accounting guidance. Appropriate consideration is given to all positive and negative evidence related to that realization. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry-forward periods, experience with tax attributes expiring unused, and tax planning alternatives. The weight given to these considerations depends upon the degree to which they can be objectively verified. The Company continues to provide for a valuation allowance on certain of its foreign deferred tax assets and an anticipated capital loss carryforward. The Company has determined, based on the evaluation of both objective and subjective evidence available, that this valuation allowance is necessary and that it is more likely than not that the deferred tax assets are not fully realizable. In accordance with the FASB’s authoritative guidance on accounting for income taxes, the Company has recorded a liability for unrecognized tax benefits related to a 2010 Research and Development Credit as of September 30, 2019 and December 31, 2018. The accounting guidance prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company's returns will remain subject to examination by the various taxing authorities for the duration of the applicable statute of limitations (generally three years from the later of the date of filing or the due date of the return).

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Accumulated Other Comprehensive Loss	NOTE O. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables reconcile changes in AOCL by component (net of tax, dollars in millions): Three months ended Pension and OPEB liability adjustment Available- for-sale securities and interest rate swaps Foreign currency items Total AOCL as of June 30, 2018 $ 3 $ (2 ) $ (28 ) $ (27 ) Other comprehensive income before reclassifications — 4 — 4 Amounts reclassified from AOCL (3 ) — — (3 ) Income tax — — — — Net current period other comprehensive (loss) income $ (3 ) $ 4 $ — $ 1 AOCL as of September 30, 2018 $ — $ 2 $ (28 ) $ (26 ) AOCL as of June 30, 2019 $ 12 $ (28 ) $ (31 ) $ (47 ) Other comprehensive loss before reclassifications — (7 ) (6 ) (13 ) Amounts reclassified from AOCL (3 ) — — (3 ) Income tax 1 2 — 3 Net current period other comprehensive loss $ (2 ) $ (5 ) $ (6 ) $ (13 ) AOCL as of September 30, 2019 $ 10 $ (33 ) $ (37 ) $ (60 ) Nine months ended Pension and OPEB liability adjustment Available- for-sale securities and interest rate swaps Foreign currency items Total AOCL as of December 31, 2017 $ 8 $ — $ (23 ) $ (15 ) Other comprehensive income (loss) before reclassifications — 2 (5 ) (3 ) Amounts reclassified from AOCL (10 ) — — (10 ) Income tax 2 — — 2 Net current period other comprehensive (loss) income $ (8 ) $ 2 $ (5 ) $ (11 ) AOCL as of September 30, 2018 $ — $ 2 $ (28 ) $ (26 ) AOCL as of December 31, 2018 $ 9 $ (7 ) $ (32 ) $ (30 ) Other comprehensive loss before reclassifications — (32 ) (5 ) (37 ) Amounts reclassified from AOCL (10 ) — — (10 ) Income tax 3 7 — 10 Reclassification of stranded tax effects 8 (1 ) — 7 Net current period other comprehensive income (loss) $ 1 $ (26 ) $ (5 ) $ (30 ) AOCL as of September 30, 2019 $ 10 $ (33 ) $ (37 ) $ (60 ) In accordance with the FASB's new authoritative guidance regarding the reclassification of certain tax effects from accumulated other comprehensive income, the Company reclassified approximately $7 million, as of January 1, 2019, from accumulated other comprehensive loss to retained earnings for the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. This reclassification had zero net effect on total stockholders' equity. The Company utilizes the portfolio securities approach when releasing income tax effects from accumulated other comprehensive loss for its investment securities. Amounts reclassified from AOCL AOCL Components Three months ended September 30, 2019 Three months ended September 30, 2018 Affected line item in the Condensed Consolidated Statements of Comprehensive Income Amortization of benefit items: Prior service cost $ 3 $ 3 Other income, net Total reclassifications, before tax $ 3 $ 3 Income before income taxes Income tax expense (1 ) — Income tax expense Total reclassifications $ 2 $ 3 Net of tax Amounts reclassified from AOCL AOCL Components Nine months ended September 30, 2019 Nine months ended September 30, 2018 Affected line item in the Condensed Consolidated Statements of Comprehensive Income Amortization of benefit items: Prior service cost $ 10 $ 10 Other income, net Total reclassifications, before tax $ 10 $ 10 Income before income taxes Income tax expense (3 ) (2 ) Income tax expense Total reclassifications $ 7 $ 8 Net of tax Prior service cost and actuarial loss are included in the computation of the Company’s net periodic benefit cost. See NOTE M, “Employee Benefit Plans” for additional details.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE P. COMMITMENTS AND CONTINGENCIES Environmental Matters The Company has an agreement with the Environmental Protection Agency (“EPA”) to perform remedial activities at the Company’s Indianapolis, Indiana manufacturing facilities related to historical soil and groundwater contamination. As of September 30, 2019, the Company had a liability recorded in the amount of $12 million. As the Company successfully remediates certain activities, it will continue to review its remaining obligation with the EPA. Claims, Disputes, and Litigation The Company is party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims and workers’ compensation claims. The Company believes that the ultimate liability, if any, in excess of amounts already provided for in the condensed consolidated financial statements or covered by insurance on the disposition of these matters will not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	NOTE Q. EARNINGS PER SHARE The Company presents both basic and diluted earnings per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares and common equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock-based awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future and compensation cost for future service that the Company has not yet recognized. For the three and nine months ended both September 30, 2019 and September 30, 2018, there were no outstanding stock options excluded from the diluted EPS calculation because they were anti-dilutive. The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net income $ 149 $ 167 $ 497 $ 492 Weighted average shares of common stock outstanding 120 130 123 135 Dilutive effect of stock-based awards 1 1 1 — Diluted weighted average shares of common stock outstanding 121 131 124 135 Basic earnings per share attributable to common stockholders $ 1.24 $ 1.28 $ 4.04 $ 3.66 Diluted earnings per share attributable to common stockholders $ 1.23 $ 1.27 $ 4.01 $ 3.64

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Common Stock	NOTE R. COMMON STOCK The Company’s current stock repurchase program ("Repurchase Program") was announced on November 14, 2016 when the Board of Directors authorized the Company to repurchase up to $1,000 million of its common stock on the open market or through privately negotiated transactions. On November 8, 2017, the Board of Directors authorized the Company to repurchase an additional $500 million of its common stock, on July 30, 2018, the Board of Directors authorized the Company to repurchase an additional $500 million of its common stock and on May 9, 2019, the Board of Directors authorized the Company to repurchase an additional $1,000 million of its common stock, bringing the total amount authorized under the Repurchase Program to $3,000 million. The Repurchase Program has no termination date. The timing and amount of stock purchases are subject to market conditions and corporate needs. The Repurchase Program may be modified, suspended or discontinued at any time at the Company’s discretion. During the three and nine months ended September 30, 2019, the Company repurchased approximately $46 million and $331 million, respectively, of its common stock under the Repurchase Program, leaving $1,114 million of authorized repurchases remaining under the Repurchase Program as of September 30, 2019.

Certain Relationships and Relat

Certain Relationships and Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Certain Relationships and Related Party Transactions	NOTE S. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS On May 7, 2019, the Company entered into a stock repurchase agreement with Ashe Capital Management, LP to repurchase 4,977,043 shares of the Company's common stock for approximately $232 million. William Harker, a member of the Company's Board of Directors until May 9, 2019, is the President and Co-Founder of Ashe Capital Management, LP. The shares were repurchased under the Repurchase Program. The purchase was funded with cash on hand and borrowings under the New Revolving Credit Facility. The shares were subsequently retired.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Acquisitions	NOTE T. ACQUISITIONS Walker Die Casting Acquisition On September 9, 2019, the Company acquired the assets of Walker Die Casting, Inc. (“Walker Die Casting”), an aluminum castings company, and C&R Tool and Engineering, Inc. (“C&R Tool and Engineering”), a supplier of metal-working tools, for approximately $103 million in cash, which included the effective settlement of pre-existing accounts payable of approximately $4 million. Walker Die Casting is an essential component supplier for the Company’s core on-highway transmission products. The acquired business was integrated into the Company's single operating segment. The preliminary purchase price of $99 million resulted in the recognition of property, plant and equipment, goodwill, inventory, intangible assets and other net assets of $53 million, $21 million, $18 million, $4 million and $3 million, respectively. The intangible assets consist of customer relationships and tradename of $3 million and $1 million, respectively. The amount allocated to goodwill is deductible for income tax purposes. Goodwill represents the excess of the consideration transferred over the preliminary estimate of fair values of the assets acquired and liabilities assumed and is primarily attributable to intangible assets, such as the assembled workforce, which are not separately recognizable. The Company is currently completing its fair value assessment of the acquired assets and liabilities with the assistance of third-party valuation specialists and any adjustments identified in the measurement period, which will not exceed one year from the acquisition date, will be accounted for prospectively. For the period ended September 30, 2019, the results of Walker Die Casting and C&R Tool and Engineering as of and after the date of acquisition have been included in the Company’s condensed consolidated financial statements as of and for the three and nine months ended September 30, 2019, and net sales have been included in the Company’s Service Parts, Support Equipment and Other end market. AxleTech Electric Vehicle Systems Division Acquisition On April 16, 2019, the Company acquired, from AxleTech, a technology company that engineers, designs, manufactures, sells and services powertrain solutions for on-highway and off-highway heavy-duty vehicles, all of the assets related to its electric vehicle systems division, which designs and manufactures fully integrated electrified-axle propulsion solutions for medium- and heavy-duty trucks and transit buses, for approximately $124 million in cash. The acquisition aligns with the Company's strategy to advance its position in propulsion solutions. The Company has accounted for this acquisition in accordance with authoritative accounting guidance on business combinations. The acquired business was integrated into the Company's single operating segment. The preliminary purchase price allocation for this transaction resulted in the recognition of goodwill, intangible assets, inventory and property, plant and equipment of $66 million, $56 million, $1 million and $1 million, respectively. The intangible assets consist of in-process research and development, customer relationships and developed technology of $50 million, $3 million and $3 million. The amount allocated to goodwill is deductible for income tax purposes. Goodwill represents the excess of the consideration transferred over the preliminary estimate of fair values of the assets acquired and liabilities assumed and is primarily attributable to intangible assets, such as the assembled workforce, which are not separately recognizable. The Company is currently completing its fair value assessment of the acquired assets and liabilities with the assistance of third-party valuation specialists and any adjustments identified in the measurement period, which will not exceed one year from the acquisition date, will be accounted for prospectively. Vantage Power Limited Acquisition On April 12, 2019, the Company acquired all of the outstanding shares of Vantage Power Limited, a privately owned company based in the United Kingdom which designs and manufactures powertrain electrification and connectivity technologies applicable to a broad range of commercial vehicle end markets. The Company paid approximately $9 million in cash on April 12, 2019 and may pay up to an additional $8 million over the next three years based on specified conditions being met. The Company has accounted for this acquisition in accordance with authoritative accounting guidance on business combinations. The acquired business was integrated into the Company's single operating segment as a wholly-owned subsidiary.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE U. SUBSEQUENT EVENTS On October 11, 2019, the Company and ATI entered into an amendment with the term loan lenders under the New Senior Secured Credit Facility to lower the applicable interest rate margins on the New Term Loan by 25 basis points.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair statement of the results for the periods presented. The condensed consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated. These condensed consolidated financial statements present the financial position, results of comprehensive income and cash flows of the Company. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission on February 26, 2019. The interim period financial results for the three and nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Estimates include, but are not limited to, sales allowances, government price adjustments, fair market values and future cash flows associated with goodwill, indefinite life intangibles, definite life intangibles, long-lived asset impairment tests, useful lives for depreciation and amortization, warranty liabilities, environmental liabilities, determination of discount and other assumptions for pension and other post-retirement benefit expense, determination of discount rate and period for leases, income taxes and deferred tax valuation allowances, derivative valuation and contingencies. The Company’s accounting policies involve the application of judgments and assumptions made by management that include inherent risks and uncertainties. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur.
Business Combinations	Business Combinations The Company uses the acquisition method to account for business combinations. The assets acquired and liabilities assumed are recorded at their respective estimated fair value at the date of acquisition. Any excess purchase price over the fair values of the acquired net assets is recorded as goodwill. Determining the fair values of assets acquired and liabilities assumed requires management's judgment and includes the use of estimates with respect to timing and amount of future cash flows, market rate assumptions, actuarial assumptions, appropriate discount rates and other relevant factors.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2018, the Financial Accounting Standards Board ("FASB") issued authoritative accounting guidance on accounting for nonemployee awards for goods or services received by a company. The Company adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In February 2018, the FASB issued authoritative accounting guidance on transfers of stranded balances in accumulated other comprehensive loss ("AOCL") to retained earnings. The passage of the U.S. Tax Cuts and Jobs Act by the U.S. federal government in December 2017 and existing GAAP requirements to adjust deferred tax assets and liabilities for changes in tax laws or rates created stranded balances in AOCL on deferred tax assets and liabilities previously recorded as a component to AOCL. The guidance applies to companies affected by these stranded balances and allows a reclassification of these balances to retained earnings. The Company adopted this guidance effective January 1, 2019. As a result of the adoption of this guidance, the Company recorded an adjustment that reclassified $7 million of AOCL to retained earnings as of January 1, 2019. In February 2016, the FASB issued authoritative accounting guidance on lease accounting, which guidance was subsequently amended. The guidance requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases not considered short-term leases. Short-term leases are leases with a lease term of 12 months or less as long as the leases do not include options to purchase the underlying assets that the lessee is reasonably certain to exercise. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued additional authoritative guidance on this topic giving lessees an optional adoption approach under which the impact of the adoption of the guidance would be shown as of the date of adoption. Management elected to adopt the guidance using this optional alternative method. The Company adopted this guidance effective January 1, 2019. The Company recorded non-financial right-of-use ("ROU") assets of $14 million, including $1 million of assets transferred from the balance recorded as prepaid lease expense under the prior guidance, and current and non-current lease liabilities of $4 million and $9 million, respectively. The adoption of this guidance did not have a material impact on the Company's opening retained earnings. See Note K, "Leases" for further details. Recently Issued Accounting Pronouncements In August 2018, the FASB issued authoritative accounting guidance on accounting for implementation costs in hosting arrangements to align these costs with existing guidance for internally developed software. The stage of implementation must be assessed to determine if costs should be capitalized or expensed, and capitalized costs should be expensed during the noncancellable term of the agreement. The guidance will be effective for the Company in fiscal year 2020, and the Company does not plan to early adopt. Management has elected to apply the guidance prospectively upon adoption and does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued authoritative accounting guidance amending disclosure requirements for the Company's defined benefit pension plans and other postretirement benefit plan. The guidance will be effective for the Company in fiscal year 2021, and the Company does not plan to early adopt. Management is currently evaluating the impact of this guidance on the Company's consolidated financial statements. In August 2018, the FASB issued authoritative accounting guidance amending disclosure requirements for certain assets subject to fair value measurement. The guidance allows the Company to reduce the amount of disclosure on transfers between Level 1 and Level 2 assets. The guidance will be effective for the Company in fiscal year 2020, and the Company does not plan to early adopt. Management does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued authoritative accounting guidance on the presentation of financial assets at the net amount expected to be collected, which guidance was subsequently amended. The guidance also requires the disclosure of financing receivables disaggregated by the year of origination. The guidance will be effective for the Company in fiscal year 2020. Management is currently reviewing accounting policies for estimating credit losses on financial assets, but does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements.
Revenue	Revenue is recognized as each distinct performance obligation within a contract is satisfied. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company enters into long-term agreements (“LTAs”) and distributor agreements with certain customers. The LTAs and distributor agreements do not include committed volumes until underlying purchase orders are issued; therefore, the Company determined that purchase orders are the contract with a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied, as there is no right of return.
Fair Value of Financial Instruments	In accordance with the FASB’s authoritative accounting guidance on fair value measurements, fair value is the price (exit price) that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and utilizes the best available information that maximizes the use of observable inputs and minimizes the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy defined by the relevant guidance are as follows: Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, listed equities and publicly traded bonds. Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes financial instruments that are valued using quoted prices in markets that are not active and those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At each balance sheet date, the Company performs an analysis of all instruments subject to authoritative accounting guidance and includes, in Level 3, all of those whose fair value is based on significant unobservable inputs. As of September 30, 2019 and December 31, 2018, the Company did not have any Level 3 financial assets or liabilities.
Derivatives	The Company is subject to interest rate risk related to the New Senior Secured Credit Facility and enters into interest rate swaps that are based on LIBOR to manage a portion of this exposure. The interest rate swaps are designated as cash flow hedges that qualify for hedge accounting under the hypothetical derivative method. Fair value adjustments are recorded as a component of AOCL in the Condensed Consolidated Balance Sheets. Balances in AOCL are reclassified to earnings when transactions related to the underlying risk are settled. During the first quarter of 2019, the Company entered into $250 million of interest rate swaps and designated them as cash flow hedges under the hypothetical derivative method. As of September 30, 2019, the Company held interest rate swaps effective from September 2019 to September 2025 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 3.04%, interest rate swaps effective from September 2019 to September 2022 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 3.01% and interest rate swaps effective from September 2022 to September 2025 with notional values totaling $250 million and a weighted average LIBOR fixed rate of 2.82%. See NOTE F “Fair Value of Financial Instruments” for information regarding the fair value of the Company’s interest rate swaps.
Lessee Accounting	Contracts are assessed by the Company to determine if the contract conveys the right to control an identified asset in exchange for consideration during a period of time. The Company classifies all identified leases as operating or finance leases. As of September 30, 2019, the Company was not a party to any finance leases. Contracts that contain leases are assessed to determine if the consideration in the contract is related to a lease component, non-lease component or other components not related to the lease. Lease components are recorded as ROU assets and lease liabilities while any non-lease component is expensed as incurred. The consideration in the contract related to other components not related to the lease is allocated among the lease component and the non-lease component, as applicable, based on the stand-alone selling price of the lease and non-lease components.
Income Taxes	The need to establish a valuation allowance against the deferred tax assets is assessed periodically based on a more-likely-than-not realization threshold, in accordance with authoritative accounting guidance. Appropriate consideration is given to all positive and negative evidence related to that realization. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry-forward periods, experience with tax attributes expiring unused, and tax planning alternatives. The weight given to these considerations depends upon the degree to which they can be objectively verified. The Company continues to provide for a valuation allowance on certain of its foreign deferred tax assets and an anticipated capital loss carryforward. The Company has determined, based on the evaluation of both objective and subjective evidence available, that this valuation allowance is necessary and that it is more likely than not that the deferred tax assets are not fully realizable. In accordance with the FASB’s authoritative guidance on accounting for income taxes, the Company has recorded a liability for unrecognized tax benefits related to a 2010 Research and Development Credit as of September 30, 2019 and December 31, 2018. The accounting guidance prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company's returns will remain subject to examination by the various taxing authorities for the duration of the applicable statute of limitations (generally three years from the later of the date of filing or the due date of the return).
ASU 2016-02
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements	New authoritative guidance for leases was adopted by the Company effective January 1, 2019 using the optional transition method. Balances as of September 30, 2019 and results for the three and nine months ended September 30, 2019 are presented in conformity with the new authoritative accounting guidance, while prior period balances and results are presented in conformity with prior accounting guidance for leases.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue From Contract With Customer [Abstract]
Disaggregated Revenue by Categories	The following presents disaggregated revenue by categories that best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 North America On-Highway $ 369 $ 332 $ 1,144 $ 1,014 North America Off-Highway 6 12 29 76 Defense 40 42 109 122 Outside North America On-Highway 99 96 299 288 Outside North America Off-Highway 24 46 91 82 Service Parts, Support Equipment and Other 131 164 409 484 Total Net Sales $ 669 $ 692 $ 2,081 $ 2,066

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Components of Inventories	Inventories consisted of the following components (dollars in millions): September 30, 2019 December 31, 2018 Purchased parts and raw materials $ 100 $ 82 Work in progress 17 8 Service parts 56 48 Finished goods 36 32 Total inventories $ 209 $ 170

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Other Intangible Assets	The following presents a summary of other intangible assets (dollars in millions): September 30, 2019 December 31, 2018 Intangible assets, gross Accumulated amortization Intangible assets, net Intangible assets, gross Accumulated amortization Intangible assets, net Other intangible assets: Trade name $ 791 $ — $ 791 $ 790 $ — $ 790 In process research and development 50 — 50 — — — Customer relationships — commercial 839 (653 ) 186 832 (619 ) 213 Proprietary technology 479 (463 ) 16 476 (434 ) 42 Customer relationships — defense 62 (44 ) 18 62 (41 ) 21 Total $ 2,221 $ (1,160 ) $ 1,061 $ 2,160 $ (1,094 ) $ 1,066
Schedule of Amortization Expense Related to Other Intangible Assets for Next Five Fiscal Years	Amortization expense related to other intangible assets for the next five fiscal years is expected to be (dollars in millions): 2020 2021 2022 2023 2024 Amortization expense $ 51 $ 46 $ 45 $ 43 $ 8

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets and (Liabilities)	The following table summarizes the fair value of the Company’s financial assets and (liabilities) as of September 30, 2019 and December 31, 2018 (dollars in millions): Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) TOTAL September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Cash equivalents $ 10 $ 111 $ — $ — $ 10 $ 111 Rabbi trust assets 11 9 — — 11 9 Deferred compensation obligation (11 ) (9 ) — — (11 ) (9 ) Derivative liabilities — — (41 ) (9 ) (41 ) (9 ) Total $ 10 $ 111 $ (41 ) $ (9 ) $ (31 ) $ 102

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Summary of Long-Term Debt and Maturities	Long-term debt and maturities are as follows (dollars in millions): September 30, 2019 December 31, 2018 Long-term debt: Senior Secured Credit Facility Term Loan, variable, due 2022 $ — $ 1,148 Senior Notes, fixed 5.0%, due 2024 1,000 1,000 Senior Secured Credit Facility Term Loan, variable, due 2026 646 — Senior Notes, fixed 4.75%, due 2027 400 400 Senior Notes, fixed 5.875%, due 2029 500 — Total long-term debt $ 2,546 $ 2,548 Less: current maturities of long-term debt 6 — deferred financing costs, net 27 25 Total long-term debt, net $ 2,513 $ 2,523

Derivatives (Tables)

Derivatives (Tables)	9 Months Ended
	Sep. 30, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and their Impact on Financial Condition	The following tabular disclosures further describe the Company’s interest rate derivatives qualifying and designated for hedge accounting and their impact on the financial condition of the Company (dollars in millions): Fair Value Balance Sheet Location September 30, 2019 December 31, 2018 Derivatives designated as hedging instruments: Interest rate swaps Other current liabilities $ 7 $ 1 Other non-current liabilities 34 8 Total derivatives designated as hedging instruments $ 41 $ 9

Product Warranty Liabilities (T

Product Warranty Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Guarantees And Product Warranties [Abstract]
Product Warranty Liability Activities	Product warranty liability activities consist of the following (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Beginning balance $ 59 $ 65 $ 66 $ 55 Payments (7 ) (6 ) (19 ) (25 ) Increase in liability (warranty issued during period) 5 9 16 30 Net adjustments to liability (3 ) (1 ) (9 ) 7 Ending balance $ 54 $ 67 $ 54 $ 67

Deferred Revenue (Tables)

Deferred Revenue (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue Recognition And Deferred Revenue [Abstract]
Summary of Deferred Revenue Activity	Deferred revenue activity consists of the following (dollars in millions): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Beginning balance $ 133 $ 125 $ 122 $ 110 Increases 15 11 44 44 Revenue earned (10 ) (12 ) (28 ) (30 ) Ending balance $ 138 $ 124 $ 138 $ 124

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Lease Maturity, Prior Guidance	As of December 31, 2018, future undiscounted payments under operating leases (as defined by prior guidance) are expected to be as follows for the next five annual periods and thereafter following December 31, 2018: December 31, 2018 2019 $ 4 2020 3 2021 2 2022 1 2023 1 Thereafter — Total $ 11
Schedule of Lease Maturity, Current Guidance	The following table reconciles total operating lease liabilities as of September 30, 2019 to future undiscounted cash flows for operating leases: September 30, 2019 2019 $ 1 2020 5 2021 4 2022 3 2023 3 Thereafter 9 Total lease payments $ 25 Less: Interest 5 Present value of lease liabilities $ 20
Schedule of Right of Use Assets	The below table depicts the ROU assets held by the Company based on the underlying asset: September 30, 2019 Buildings $ 19 Land 1 Vehicles 1 Equipment — Total right-of-use assets $ 21

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Other Liabilities Disclosure [Abstract]
Summary of Other Current Liabilities	Other current liabilities consist of the following (dollars in millions): As of September 30, 2019 As of December 31, 2018 Payroll and related costs $ 76 $ 81 Accrued interest payable 51 19 Sales allowances 30 39 Vendor buyback obligation 17 15 Taxes payable 11 10 Defense price reduction reserve 9 9 Derivative liabilities 7 1 Lease liability 4 — Vendor liability 3 5 Non-trade payables 3 3 Other accruals 15 15 Total $ 226 $ 197

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2019
Postemployment Benefits [Abstract]
Components of Net Periodic Benefit Cost (credit)	Components of net periodic benefit cost (credit) consist of the following (dollars in millions): Pension Plans Post-retirement Benefits Three months ended September 30, Three months ended September 30, 2019 2018 2019 2018 Net periodic benefit cost: Service cost $ 2 $ 3 $ — $ — Interest cost 1 2 1 1 Expected return on assets (1 ) (2 ) — — Prior service credit — — (3 ) (3 ) Net periodic benefit cost (credit) $ 2 $ 3 $ (2 ) $ (2 ) Pension Plans Post-retirement Benefits Nine months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net periodic benefit cost: Service cost $ 7 $ 9 $ 1 $ 1 Interest cost 5 5 3 3 Expected return on assets (6 ) (6 ) — — Prior service credit — — (10 ) (10 ) Net periodic benefit cost (credit) $ 6 $ 8 $ (6 ) $ (6 )

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Changes in Accumulated Other Comprehensive Loss by Component	Three months ended Pension and OPEB liability adjustment Available- for-sale securities and interest rate swaps Foreign currency items Total AOCL as of June 30, 2018 $ 3 $ (2 ) $ (28 ) $ (27 ) Other comprehensive income before reclassifications — 4 — 4 Amounts reclassified from AOCL (3 ) — — (3 ) Income tax — — — — Net current period other comprehensive (loss) income $ (3 ) $ 4 $ — $ 1 AOCL as of September 30, 2018 $ — $ 2 $ (28 ) $ (26 ) AOCL as of June 30, 2019 $ 12 $ (28 ) $ (31 ) $ (47 ) Other comprehensive loss before reclassifications — (7 ) (6 ) (13 ) Amounts reclassified from AOCL (3 ) — — (3 ) Income tax 1 2 — 3 Net current period other comprehensive loss $ (2 ) $ (5 ) $ (6 ) $ (13 ) AOCL as of September 30, 2019 $ 10 $ (33 ) $ (37 ) $ (60 ) Nine months ended Pension and OPEB liability adjustment Available- for-sale securities and interest rate swaps Foreign currency items Total AOCL as of December 31, 2017 $ 8 $ — $ (23 ) $ (15 ) Other comprehensive income (loss) before reclassifications — 2 (5 ) (3 ) Amounts reclassified from AOCL (10 ) — — (10 ) Income tax 2 — — 2 Net current period other comprehensive (loss) income $ (8 ) $ 2 $ (5 ) $ (11 ) AOCL as of September 30, 2018 $ — $ 2 $ (28 ) $ (26 ) AOCL as of December 31, 2018 $ 9 $ (7 ) $ (32 ) $ (30 ) Other comprehensive loss before reclassifications — (32 ) (5 ) (37 ) Amounts reclassified from AOCL (10 ) — — (10 ) Income tax 3 7 — 10 Reclassification of stranded tax effects 8 (1 ) — 7 Net current period other comprehensive income (loss) $ 1 $ (26 ) $ (5 ) $ (30 ) AOCL as of September 30, 2019 $ 10 $ (33 ) $ (37 ) $ (60 ) Amounts reclassified from AOCL AOCL Components Three months ended September 30, 2019 Three months ended September 30, 2018 Affected line item in the Condensed Consolidated Statements of Comprehensive Income Amortization of benefit items: Prior service cost $ 3 $ 3 Other income, net Total reclassifications, before tax $ 3 $ 3 Income before income taxes Income tax expense (1 ) — Income tax expense Total reclassifications $ 2 $ 3 Net of tax Amounts reclassified from AOCL AOCL Components Nine months ended September 30, 2019 Nine months ended September 30, 2018 Affected line item in the Condensed Consolidated Statements of Comprehensive Income Amortization of benefit items: Prior service cost $ 10 $ 10 Other income, net Total reclassifications, before tax $ 10 $ 10 Income before income taxes Income tax expense (3 ) (2 ) Income tax expense Total reclassifications $ 7 $ 8 Net of tax

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Reconciliation of Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS	The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net income $ 149 $ 167 $ 497 $ 492 Weighted average shares of common stock outstanding 120 130 123 135 Dilutive effect of stock-based awards 1 1 1 — Diluted weighted average shares of common stock outstanding 121 131 124 135 Basic earnings per share attributable to common stockholders $ 1.24 $ 1.28 $ 4.04 $ 3.66 Diluted earnings per share attributable to common stockholders $ 1.23 $ 1.27 $ 4.01 $ 3.64

Overview - Additional Informati

Overview - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2019ProductCustomer	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Transmission product lines | Product	12
Worldwide independent distributor and dealer locations | Customer	1,400
Sales Revenue, Net | North America | Geographic Concentration Risk
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Concentration of risk, percentage		77.00%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Jan. 01, 2019	Sep. 30, 2019
Accounting Policies [Abstract]
Reclassification of stranded tax effects	$ 7	$ 7
Right-of-use assets	14	21
Assets transferred	1
Current lease liabilities	4	4
Non-current lease liabilities	$ 9	$ 16

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Deferred Revenue Disclosure [Abstract]
Adjustments based on variable consideration	$ 0	$ 0	$ 0	$ 0
Credit term period			30 days
Contract assets	$ 0		$ 0		$ 0

Revenue - Disaggregated Revenue

Revenue - Disaggregated Revenue by Categories (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total Net Sales	$ 669	$ 692	$ 2,081	$ 2,066
North America On-Highway
Disaggregation of Revenue [Line Items]
Total Net Sales	369	332	1,144	1,014
North America Off-Highway
Disaggregation of Revenue [Line Items]
Total Net Sales	6	12	29	76
Defense
Disaggregation of Revenue [Line Items]
Total Net Sales	40	42	109	122
Outside North America On-Highway
Disaggregation of Revenue [Line Items]
Total Net Sales	99	96	299	288
Outside North America Off-Highway
Disaggregation of Revenue [Line Items]
Total Net Sales	24	46	91	82
Service Parts, Support Equipment and Other
Disaggregation of Revenue [Line Items]
Total Net Sales	$ 131	$ 164	$ 409	$ 484

Inventories - Schedule of Compo

Inventories - Schedule of Components of Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Purchased parts and raw materials	$ 100	$ 82
Work in progress	17	8
Service parts	56	48
Finished goods	36	32
Total inventories	$ 209	$ 170

Goodwill And Other Intangible_3

Goodwill And Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 2,040	$ 1,941
Net carrying value of Goodwill and other intangible assets	$ 3,101	$ 3,007

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Line Items]
Accumulated amortization	$ (1,160)	$ (1,094)
Intangible assets, gross, Total	2,221	2,160
Intangible assets, net, Total	1,061	1,066
Customer relationships — commercial
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	839	832
Accumulated amortization	(653)	(619)
Intangible assets, net	186	213
Proprietary technology
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	479	476
Accumulated amortization	(463)	(434)
Intangible assets, net	16	42
Customer relationships — defense
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	62	62
Accumulated amortization	(44)	(41)
Intangible assets, net	18	21
Trade name
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets	791	790
In process research and development
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets	$ 50	$ 0

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Schedule of Amortization Expense Related to Other Intangible Assets for Next Five Fiscal Years (Details) $ in Millions	Sep. 30, 2019USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2020	$ 51
2021	46
2022	45
2023	43
2024	$ 8

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Additional Information (Details) - Fair Value, Inputs, Level 3 - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Significant Other Observable Inputs (Level 3)
Financial assets	$ 0	$ 0
Financial liabilities	$ 0	$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Summary of Fair Value of Financial Assets and (Liabilities) (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	$ 10	$ 111
Rabbi trust assets	11	9
Deferred compensation obligation	(11)	(9)
Total	(31)	102
Derivatives Designated as Hedging Instruments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liabilities	(41)	(9)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	10	111
Rabbi trust assets	11	9
Deferred compensation obligation	(11)	(9)
Total	10	111
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives Designated as Hedging Instruments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Significant Other Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Rabbi trust assets	0	0
Deferred compensation obligation	0	0
Total	(41)	(9)
Significant Other Observable Inputs (Level 2) | Derivatives Designated as Hedging Instruments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liabilities	$ (41)	$ (9)

Debt - Summary of Long-Term Deb

Debt - Summary of Long-Term Debt and Maturities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total long-term debt	$ 2,546	$ 2,548
Current portion of long-term debt	6	0
deferred financing costs, net	27	25
Long-term debt	2,513	2,523
Senior Secured Credit Facility Term Loan, Variable, Due 2022
Debt Instrument [Line Items]
Total long-term debt	0	1,148
Senior Notes, Fixed 5.0%, Due 2024
Debt Instrument [Line Items]
Total long-term debt	1,000	1,000
Senior Secured Credit Facility Term Loan, Variable, Due 2026
Debt Instrument [Line Items]
Total long-term debt	646	0
Senior Notes, Fixed 4.75%, Due 2027
Debt Instrument [Line Items]
Total long-term debt	400	400
Senior Notes, Fixed 5.875%, Due 2029
Debt Instrument [Line Items]
Total long-term debt	500	$ 0
deferred financing costs, net	$ 6

Debt - Summary of Long-Term D_2

Debt - Summary of Long-Term Debt and Maturities (Parenthetical) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Senior Secured Credit Facility Term Loan, Variable, Due 2022
Debt Instrument [Line Items]
Debt instrument, due date	2022	2022
Senior Notes, Fixed 5.0%, Due 2024
Debt Instrument [Line Items]
Debt instrument, due date	2024	2024
Debt instrument, stated interest rate	5.00%	5.00%
Senior Secured Credit Facility Term Loan, Variable, Due 2026
Debt Instrument [Line Items]
Debt instrument, due date	2026	2026
Senior Notes, Fixed 4.75%, Due 2027
Debt Instrument [Line Items]
Debt instrument, due date	2027	2027
Debt instrument, stated interest rate	4.75%	4.75%
Senior Notes, Fixed 5.875%, Due 2029
Debt Instrument [Line Items]
Debt instrument, due date	2029	2029
Debt instrument, stated interest rate	5.875%	5.875%

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt	$ 2,546		$ 2,548
Fair value of long-term debt obligations	2,626
Senior Notes, Fixed 5.0%, Due 2024
Debt Instrument [Line Items]
Long-term debt	$ 1,000		$ 1,000
Debt instrument, stated interest rate	5.00%		5.00%
Debt instrument, maturity month and year	2024-09
Senior Notes, Fixed 4.75%, Due 2027
Debt Instrument [Line Items]
Long-term debt	$ 400		$ 400
Debt instrument, stated interest rate	4.75%		4.75%
Debt instrument, maturity month and year	2027-10
Senior Notes, Fixed 5.875%, Due 2029
Debt Instrument [Line Items]
Long-term debt	$ 500		$ 0
Debt instrument, stated interest rate	5.875%		5.875%
Debt instrument, maturity month and year	2029-06
Senior Secured Credit Facility Term Loan, Variable, Due 2026
Debt Instrument [Line Items]
Long-term debt	$ 646		$ 0
Debt instrument, maturity month and year	2026-03
New Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt		$ 50
Debt instrument, maturity month and year	2024-09
Credit facility, commitments amount	$ 600

Debt - New Senior Secured Credi

Debt - New Senior Secured Credit Facility - Additional Information (Details) - USD ($)	1 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt			$ 2,546,000,000	$ 2,548,000,000
Deferred financing fees			$ 27,000,000	$ 25,000,000
Prior Term Loan
Debt Instrument [Line Items]
Long-term debt	$ 500,000,000
Debt instrument, due date			2022
Applicable margin over base rate		0.25%
Prior Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	550,000,000
Debt instrument, due date			2021
New Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	50,000,000
Debt instrument extended, due date			2024
Debt instrument, maturity month and year			2024-09
Credit facility, commitments amount			$ 600,000,000
Borrowing capacity at any time			90,000,000
Available revolving credit facility			$ 583,000,000
Commitment fee percentage			0.25%
Amount outstanding			$ 0
Achieved senior secured leverage ratio			0.44
New Revolving Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Credit facility, commitments amount			$ 75,000,000
Available revolving credit facility			$ 17,000,000
New Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Applicable margin over base rate			1.25%
New Revolving Credit Facility | LIBOR | First Lien Net Leverage Ratio is Above 4.00x
Debt Instrument [Line Items]
Applicable margin over base rate			1.75%
New Revolving Credit Facility | LIBOR | First Lien Net Leverage Ratio is Equal to or Less Than 4.00x and above 3.50x
Debt Instrument [Line Items]
Applicable margin over base rate			1.50%
New Revolving Credit Facility | LIBOR | First Lien Net Leverage Ratio is Equal to or Below 3.50x
Debt Instrument [Line Items]
Applicable margin over base rate			1.25%
New Revolving Credit Facility | Base Rate | First Lien Net Leverage Ratio is Above 4.00x
Debt Instrument [Line Items]
Applicable margin over base rate			0.75%
New Revolving Credit Facility | Base Rate | First Lien Net Leverage Ratio is Equal to or Less Than 4.00x and above 3.50x
Debt Instrument [Line Items]
Applicable margin over base rate			0.50%
New Revolving Credit Facility | Base Rate | First Lien Net Leverage Ratio is Equal to or Below 3.50x
Debt Instrument [Line Items]
Applicable margin over base rate			0.25%
New Revolving Credit Facility | Minimum | First Lien Net Leverage Ratio is Above 4.00x
Debt Instrument [Line Items]
Net leverage ratio			4
New Senior Secured Credit Facility
Debt Instrument [Line Items]
Debt instrument, due date			2022
Debt instrument extended, due date			2026
Deferred financing fees	5,000,000
Debt issuance expense	1,000,000
Net leverage ratio			4
Required senior secured leverage ratio			5.50
New Senior Secured Credit Facility | Minimum | First Lien Net Leverage Ratio is Equal to or Less Than 4.00x and above 3.50x
Debt Instrument [Line Items]
Net leverage ratio			3.50
New Senior Secured Credit Facility | Maximum [Member] | First Lien Net Leverage Ratio is Equal to or Less Than 4.00x and above 3.50x
Debt Instrument [Line Items]
Net leverage ratio			4
New Senior Secured Credit Facility | Maximum [Member] | First Lien Net Leverage Ratio is Equal to or Below 3.50x
Debt Instrument [Line Items]
Net leverage ratio			3.50
Prior Senior Secured Credit Facility
Debt Instrument [Line Items]
Deferred financing fees	$ 5,000,000	$ 1,000,000
New Term Loan
Debt Instrument [Line Items]
Debt instrument effective interest rate			4.05%
Debt instrument, maturity month and year			2026-03
Principal payments on term loans			$ 2,000,000
New Term Loan | LIBOR
Debt Instrument [Line Items]
Applicable margin over base rate			1.00%
New Term Loan | Base Rate
Debt Instrument [Line Items]
Applicable margin over base rate			0.50%
New Term Loan | Minimum | LIBOR
Debt Instrument [Line Items]
Applicable margin over base rate			2.00%
New Term Loan | Minimum | Base Rate
Debt Instrument [Line Items]
Applicable margin over base rate			1.00%
Floor rate			1.00%

Debt - 5.0% Senior Notes - Addi

Debt - 5.0% Senior Notes - Additional Information (Details)	Sep. 30, 2019	Dec. 31, 2018
Senior Notes, Fixed 5.0%, Due 2024
Debt Instrument [Line Items]
Debt instrument, stated interest rate	5.00%	5.00%

Debt - 4.75% Senior Notes - Add

Debt - 4.75% Senior Notes - Additional Information (Details)	Sep. 30, 2019	Dec. 31, 2018
Senior Notes, Fixed 4.75%, Due 2027
Debt Instrument [Line Items]
Debt instrument, stated interest rate	4.75%	4.75%

Debt - 5.875% Senior Notes - Ad

Debt - 5.875% Senior Notes - Additional Information (Details) - USD ($)	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Deferred financing fees	$ 27,000,000		$ 25,000,000
Senior Notes, Fixed 5.875%, Due 2029
Debt Instrument [Line Items]
Debt instrument, stated interest rate	5.875%		5.875%
Face amount		$ 500,000,000
Deferred financing fees	$ 6,000,000

Derivatives - Additional Inform

Derivatives - Additional Information (Details)	Sep. 30, 2019USD ($)
Derivative [Line Items]
Notional amount	$ 250,000,000
Accumulated other comprehensive income (loss), be Reclassified During Next 12 Months	6,000,000
Interest Rate Swaps A
Derivative [Line Items]
Notional amount	250,000,000
Interest Rate Swaps B
Derivative [Line Items]
Notional amount	250,000,000
Interest Rate Swap C
Derivative [Line Items]
Notional amount	250,000,000
Available-for-sale securities and interest rate swaps
Derivative [Line Items]
Accumulated other comprehensive loss, net of tax	$ (41,000,000)
LIBOR | Interest Rate Swaps A
Derivative [Line Items]
Fixed interest rate	3.04%
LIBOR | Interest Rate Swaps B
Derivative [Line Items]
Fixed interest rate	3.01%
LIBOR | Interest Rate Swap C
Derivative [Line Items]
Fixed interest rate	2.82%

Derivatives - Derivative Instru

Derivatives - Derivative Instruments and their Impact on Financial Condition (Details) - Derivatives Designated as Hedging Instruments - Interest Rate Swaps - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Derivative [Line Items]
Total derivatives designated as hedging instruments	$ 41	$ 9
Other current liabilities
Derivative [Line Items]
Interest rate swaps, liability	7	1
Other non-current liabilities
Derivative [Line Items]
Interest rate swaps, liability	$ 34	$ 8

Product Warranty Liabilities -

Product Warranty Liabilities - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Guarantees [Abstract]
Product warranty liability, current	$ 25	$ 26	$ 26
Product warranty liability, non-current	$ 29	$ 40	$ 41

Product Warranty Liabilities _2

Product Warranty Liabilities - Product Warranty Liability Activities (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Guarantees [Abstract]
Beginning balance	$ 59	$ 65	$ 66	$ 55
Payments	(7)	(6)	(19)	(25)
Increase in liability (warranty issued during period)	5	9	16	30
Net adjustments to liability	(3)	(1)	(9)	7
Ending balance	$ 54	$ 67	$ 54	$ 67

Deferred Revenue - Additional I

Deferred Revenue - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Deferred revenue current liabilities	$ 35	$ 34	$ 35
Deferred revenue non-current liabilities	103	$ 88	89
ETC contracts
Disaggregation of Revenue [Line Items]
Deferred revenue current liabilities	28		30
Deferred revenue non-current liabilities	$ 82		$ 73

Deferred Revenue - Summary of D

Deferred Revenue - Summary of Deferred Revenue Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue Recognition And Deferred Revenue [Abstract]
Beginning balance	$ 133	$ 125	$ 122	$ 110
Increases	15	11	44	44
Revenue earned	(10)	(12)	(28)	(30)
Ending balance	$ 138	$ 124	$ 138	$ 124

Leases - Additional Information

Leases - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Jan. 01, 2019
Leases [Abstract]
Right-of-use assets	$ 21,000,000	$ 21,000,000	$ 14,000,000
Current lease liabilities	4,000,000	4,000,000	4,000,000
Non-current lease liabilities	$ 16,000,000	$ 16,000,000	$ 9,000,000
Discount rate	4.35%	4.35%
Remaining lease term	6 years 10 months 20 days	6 years 10 months 20 days
Operating expense	$ 1,000,000	$ 4,000,000
Short term operating lease expense	0	0
New ROU assets	$ 2,000,000	$ 10,000,000

Leases - Schedule of Lease Matu

Leases - Schedule of Lease Maturity, Prior Guidance (Details) $ in Millions	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 4
2020	3
2021	2
2022	1
2023	1
Thereafter	0
Total	$ 11

Leases - Schedule of Lease Ma_2

Leases - Schedule of Lease Maturity, Current Guidance (Details) $ in Millions	Sep. 30, 2019USD ($)
Leases [Abstract]
2019	$ 1
2020	5
2021	4
2022	3
2023	3
Thereafter	9
Total lease payments	25
Less: Interest	5
Present value of lease liabilities	$ 20

Leases - Schedule of Right of U

Leases - Schedule of Right of Use Assets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Total right-of-use assets	$ 21	$ 14
Buildings
Lessee, Lease, Description [Line Items]
Total right-of-use assets	19
Land
Lessee, Lease, Description [Line Items]
Total right-of-use assets	1
Vehicles
Lessee, Lease, Description [Line Items]
Total right-of-use assets	$ 1

Other Current Liabilities - Sum

Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Payables And Accruals [Abstract]
Payroll and related costs	$ 76		$ 81
Accrued interest payable	51		19
Sales allowances	30		39
Vendor buyback obligation	17		15
Taxes payable	11		10
Defense price reduction reserve	9		9
Derivative liabilities	7		1
Current lease liabilities	4	$ 4
Vendor liability	3		5
Non-trade payables	3		3
Other accruals	15		15
Total	$ 226		$ 197

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Credit) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2	$ 3	$ 7	$ 9
Interest cost	1	2	5	5
Expected return on assets	(1)	(2)	(6)	(6)
Net periodic benefit cost (credit)	2	3	6	8
Post-retirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost			1	1
Interest cost	1	1	3	3
Prior service credit	(3)	(3)	(10)	(10)
Net periodic benefit cost (credit)	$ (2)	$ (2)	$ (6)	$ (6)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 45	$ 51	$ 137	$ 139
Effective tax rate	23.00%	23.00%	22.00%	22.00%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions	Jan. 01, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 659	$ 668	$ 602	$ 659	$ 689
Other comprehensive income (loss) before reclassifications		(13)	4	(37)	(3)
Amounts reclassified from AOCL		(3)	(3)	(10)	(10)
Income tax		3	0	10	2
Reclassification of stranded tax effects	7			7
Net current period other comprehensive (loss) income		(13)	1	(30)	(11)
Balance		743	684	743	684
Pension and OPEB liability adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	9	12	3	9	8
Other comprehensive income (loss) before reclassifications		0	0	0	0
Amounts reclassified from AOCL		(3)	(3)	(10)	(10)
Income tax		1	0	3	2
Reclassification of stranded tax effects				8
Net current period other comprehensive (loss) income		(2)	(3)	1	(8)
Balance		10	0	10	0
Available-for-sale securities and interest rate swaps
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(7)	(28)	(2)	(7)	0
Other comprehensive income (loss) before reclassifications		(7)	4	(32)	2
Amounts reclassified from AOCL		0	0	0	0
Income tax		2	0	7	0
Reclassification of stranded tax effects				(1)
Net current period other comprehensive (loss) income		(5)	4	(26)	2
Balance		(33)	2	(33)	2
Foreign currency items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(32)	(31)	(28)	(32)	(23)
Other comprehensive income (loss) before reclassifications		(6)	0	(5)	(5)
Amounts reclassified from AOCL		0	0	0	0
Income tax		0	0	0	0
Reclassification of stranded tax effects				0
Net current period other comprehensive (loss) income		(6)	0	(5)	(5)
Balance		(37)	(28)	(37)	(28)
Accumulated Other Comprehensive Loss, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ (30)	(47)	(27)	(30)	(15)
Balance		$ (60)	$ (26)	$ (60)	$ (26)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions	Jan. 01, 2019	Sep. 30, 2019
Equity [Abstract]
Reclassification of stranded tax effects	$ 7	$ 7

Accumulated Other Comprehensi_5

Accumulated Other Comprehensive Loss - Amounts reclassified from AOCL (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other income, net	$ 2	$ 2	$ 8	$ 5
Income before income taxes	194	218	634	631
Income tax expense	(45)	(51)	(137)	(139)
Net income	149	167	497	492
Reclassified from AOCL | Prior service cost
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other income, net	3	3	10	10
Reclassified from AOCL | Pension and OPEB liability adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income taxes	3	3	10	10
Income tax expense	(1)		(3)	(2)
Net income	$ 2	$ 3	$ 7	$ 8

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	Sep. 30, 2019USD ($)
Commitments And Contingencies Disclosure [Abstract]
Environmental liability	$ 12

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Shares excluded from diluted EPS calculation (in shares)	0	0	0	0

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Reconciliation of Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income	$ 149	$ 167	$ 497	$ 492
Weighted average shares of common stock outstanding	120	130	123	135
Dilutive effect of stock-based awards	1	1	1	0
Diluted weighted average shares of common stock outstanding	121	131	124	135
Basic earnings per share attributable to common stockholders (USD per share)	$ 1.24	$ 1.28	$ 4.04	$ 3.66
Diluted earnings per share attributable to common stockholders (USD per share)	$ 1.23	$ 1.27	$ 4.01	$ 3.64

Common Stock - Additional Infor

Common Stock - Additional Information (Details) - 2016 Repurchase Program - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	May 09, 2019	Jul. 30, 2018	Nov. 08, 2017	Nov. 14, 2016
Common Stock Disclosure [Line Items]
Stock repurchase program, authorized amount			$ 3,000,000,000			$ 1,000,000,000
Stock repurchase program, increase in authorized amount			$ 1,000,000,000	$ 500,000,000	$ 500,000,000
Common stock, repurchased during the period	$ 46,000,000	$ 331,000,000
Common stock, repurchases authorized	$ 1,114,000,000	$ 1,114,000,000

Certain Relationships and Rel_2

Certain Relationships and Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	May 07, 2019	Sep. 30, 2019	Sep. 30, 2019
2016 Repurchase Program
Related Party Transaction [Line Items]
Common stock, repurchased during the period		$ 46	$ 331
Ashe Capital Management, LP
Related Party Transaction [Line Items]
Common stock repurchased during the period (shares)	4,977,043
Ashe Capital Management, LP | 2016 Repurchase Program
Related Party Transaction [Line Items]
Common stock, repurchased during the period	$ 232

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Millions	Sep. 09, 2019	Apr. 16, 2019	Apr. 12, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Business Acquisition [Line Items]
Payments to acquire businesses				$ 232	$ 0
Goodwill				$ 2,040		$ 1,941
Walker Die Casting
Business Acquisition [Line Items]
Payments to acquire businesses	$ 103
Pre-existing accounts payable	4
Preliminary purchase price	99
Property, plant and equipment	53
Goodwill	21
Inventory	18
Intangible assets	4
Other net assets	3
Walker Die Casting | Customer Relationships
Business Acquisition [Line Items]
Intangible assets	3
Walker Die Casting | Trade name
Business Acquisition [Line Items]
Intangible assets	$ 1
AxleTech Electric Vehicle Systems Division
Business Acquisition [Line Items]
Payments to acquire businesses		$ 124
Property, plant and equipment		1
Goodwill		66
Inventory		1
Intangible assets		56
AxleTech Electric Vehicle Systems Division | In Process Research and Development
Business Acquisition [Line Items]
Intangible assets		50
AxleTech Electric Vehicle Systems Division | Customer Relationships
Business Acquisition [Line Items]
Intangible assets		3
AxleTech Electric Vehicle Systems Division | Developed Technology
Business Acquisition [Line Items]
Intangible assets		$ 3
Vantage Power Limited
Business Acquisition [Line Items]
Payments to acquire businesses			$ 9
Additional payment amount			$ 8
Payment term			3 years

Subsequent Events - Additional

Subsequent Events - Additional Information (Details)	Oct. 11, 2019
ATI | Subsequent Event | New Senior Secured Credit Facility | New Term Loan
Subsequent Event [Line Items]
Basis points	0.25%