Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 11, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-15827 | ||
Entity Registrant Name | VISTEON CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 38-3519512 | ||
Entity Address, Address Line One | One Village Center Drive, | ||
Entity Address, City or Town | Van Buren Township, | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 48111 | ||
City Area Code | 800 | ||
Local Phone Number | VISTEON | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | VC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.9 | ||
Entity Common Stock, Shares Outstanding | 27,915,661 | ||
Documents Incorporated by Reference | Document Incorporated by Reference Document Where Incorporated 2021 Proxy Statement Part III (Items 10, 11, 12, 13 and 14) | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001111335 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Net sales | $ 2,548 | $ 2,945 | $ 2,984 | |
Cost of sales | (2,303) | (2,621) | (2,573) | |
Gross margin | 245 | 324 | 411 | |
Selling, general and administrative expenses | (193) | (221) | (193) | |
Restructuring expense, net | (76) | (4) | (29) | |
Interest expense | (16) | (13) | (14) | |
Interest income | 5 | 4 | 7 | |
Equity in net income of non-consolidated affiliates | 6 | 6 | 13 | |
Other income, net | 9 | 10 | 21 | |
Income (loss) before income taxes | (20) | 106 | 216 | |
Provision for income taxes | (28) | (24) | (43) | |
Net income (loss) from continuing operations | (48) | 82 | 173 | |
Net income (loss) from discontinued operations, net of tax | 0 | (1) | 1 | |
Net income (loss) | [1] | (48) | 81 | 174 |
Net (income) loss attributable to non-controlling interests | (8) | (11) | (10) | |
Net income (loss) attributable to Visteon Corporation | $ (56) | $ 70 | $ 164 | |
Basic earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | $ (2.01) | $ 2.53 | $ 5.53 | |
Discontinued operations (in dollars per share) | 0 | (0.04) | 0.03 | |
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | (2.01) | 2.49 | 5.56 | |
Diluted earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | (2.01) | 2.52 | 5.49 | |
Discontinued operations (in dollars per share) | 0 | (0.04) | 0.03 | |
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ (2.01) | $ 2.48 | $ 5.52 | |
[1] | The Company has combined cash flows from discontinued operations with cash flows from continuing operations within the operating, investing and financing categories. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | [1] | $ (48) | $ 81 | $ 174 |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustments | 45 | (13) | (46) | |
Net investment hedge | (19) | 9 | 7 | |
Benefit plans, net of tax | [2] | (51) | (43) | (8) |
Unrealized hedging gains (losses), net of tax | [3] | (5) | (6) | 1 |
Other comprehensive income (loss), net of tax | (30) | (53) | (46) | |
Comprehensive income (loss) | (78) | 28 | 128 | |
Comprehensive income (loss) attributable to non-controlling interests | 15 | 9 | 6 | |
Comprehensive income (loss) attributable to Visteon Corporation | $ (93) | $ 19 | $ 122 | |
[1] | The Company has combined cash flows from discontinued operations with cash flows from continuing operations within the operating, investing and financing categories. | |||
[2] | Benefit plans, net of tax reflects tax expense of less than $1 million for the year ended December 31, 2020, tax benefit of $5 million for the year ended December 31,2019, and tax expense of $1 million for the year ended December 31, 2018. | |||
[3] | Unrealized hedging gains (losses), net of tax reflects no income tax effects for the years ended December 31, 2020 and 2019, respectively, and tax expense of less than $1 million for the year ended December 31, 2018. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Benefit plans, tax (benefit) expense | $ 1,000,000 | $ 5,000,000 | $ 1,000,000 |
Unrealized hedging gains (losses), tax expense | $ 0 | $ 0 | $ 1,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and equivalents | $ 496,000 | $ 466,000 |
Restricted cash | 4,000 | 3,000 |
Accounts receivable, net | 484,000 | 514,000 |
Inventories, net | 177,000 | 169,000 |
Other current assets | 180,000 | 193,000 |
Total current assets | 1,341,000 | 1,345,000 |
Property and equipment, net | 436,000 | 436,000 |
Intangible assets, net | 127,000 | 127,000 |
Right-of-use assets | 172,000 | 165,000 |
Investments in non-consolidated affiliates | 60,000 | 48,000 |
Other non-current assets | 135,000 | 150,000 |
Total assets | 2,271,000 | 2,271,000 |
LIABILITIES AND EQUITY | ||
Short-term debt | 0 | 37,000 |
Accounts payable | 500,000 | 511,000 |
Accrued employee liabilities | 83,000 | 73,000 |
Current lease liability | 32,000 | 30,000 |
Other current liabilities | 209,000 | 147,000 |
Total current liabilities | 824,000 | 798,000 |
Long-term debt, net | 349,000 | 348,000 |
Employee benefits | 322,000 | 292,000 |
Non-current lease liability | 146,000 | 139,000 |
Deferred tax liabilities | 28,000 | 27,000 |
Other non-current liabilities | 92,000 | 72,000 |
Stockholders’ equity: | ||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of December 31, 2020 and 2019) | 0 | 0 |
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 28 million shares outstanding as of December 31, 2020 and 2019) | 1,000 | 1,000 |
Additional paid-in capital | 1,348,000 | 1,342,000 |
Retained earnings | 1,623,000 | 1,679,000 |
Accumulated other comprehensive loss | (304,000) | (267,000) |
Treasury stock | (2,281,000) | (2,275,000) |
Total Visteon Corporation stockholders’ equity | 387,000 | 480,000 |
Non-controlling interests | 123,000 | 115,000 |
Total equity | 510,000 | 595,000 |
Total liabilities and equity | $ 2,271,000 | $ 2,271,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 55,000,000 | 55,000,000 |
Common stock, shares outstanding (in shares) | 28,000,000 | 28,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating Activities | ||||
Net income (loss) | [1] | $ (48) | $ 81 | $ 174 |
Adjustments to reconcile net income (loss) to net cash provided from operating activities: | ||||
Depreciation and amortization | [1] | 104 | 100 | 91 |
Non-cash stock-based compensation | [1] | 18 | 17 | 8 |
Transaction gains | [1] | 0 | 0 | (8) |
Equity in net income of non-consolidated affiliates, net of dividends remitted | [1] | (5) | (6) | (13) |
Other non-cash items | [1] | 7 | 8 | 3 |
Changes in assets and liabilities: | ||||
Accounts receivable | [1] | 51 | (33) | 44 |
Inventories | [1] | (2) | 13 | 1 |
Accounts payable | [1] | (13) | 73 | (19) |
Other assets and other liabilities | [1] | 56 | (70) | (77) |
Net cash provided from operating activities | [1] | 168 | 183 | 204 |
Investing Activities | ||||
Capital expenditures, including intangibles | [1] | (104) | (142) | (127) |
Net investment hedge transactions | [1] | 8 | 0 | 0 |
Loans to non-consolidated affiliate, net of repayments | [1] | 2 | 11 | 0 |
Acquisition of businesses, net of cash acquired | [1] | 0 | 0 | 16 |
Other, net | [1] | (4) | 3 | 13 |
Net cash used by investing activities | [1] | (98) | (128) | (98) |
Financing Activities | ||||
Borrowings on debt | [1] | 400 | 0 | 0 |
Principal payments on debt | [1] | (400) | 0 | 0 |
Repurchase of common stock | [1] | (16) | (20) | (300) |
Short-term debt, net | [1] | (37) | (19) | 12 |
Dividends paid to non-controlling interests | [1] | (7) | (9) | (28) |
Distribution payments | [1] | 0 | 0 | (14) |
Stock-based compensation tax withholding payments | [1] | 0 | 0 | (7) |
Other | [1] | 2 | (1) | 2 |
Net cash used by financing activities | [1] | (58) | (49) | (335) |
Effect of exchange rates | [1] | 19 | (4) | (13) |
Net increase (decrease) in cash, equivalents, and restricted cash | [1] | 31 | 2 | (242) |
Cash, equivalents, and restricted cash at beginning of the period | [1] | 469 | 467 | 709 |
Cash, equivalents, and restricted cash at end of the period | [1] | 500 | 469 | 467 |
Supplemental Disclosures: | ||||
Cash paid for interest | [1] | 18 | 14 | 15 |
Cash paid for income taxes, net of refunds | [1] | $ 19 | $ 40 | $ 47 |
[1] | The Company has combined cash flows from discontinued operations with cash flows from continuing operations within the operating, investing and financing categories. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Stock Warrants | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Visteon Corporation Stockholders' Equity | Non-Controlling Interests | ||
Beginning Balance at Dec. 31, 2017 | $ 761 | $ 1 | $ 1,339 | $ 1,445 | $ (174) | $ (1,974) | $ 637 | $ 124 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 174 | [1] | 164 | 164 | 10 | ||||||
Other comprehensive income (loss) | (46) | (42) | (42) | (4) | |||||||
Stock-based compensation, net | 6 | (4) | 10 | 6 | |||||||
Repurchase of shares of common stock | (300) | (300) | (300) | ||||||||
Repurchase of common stock | [1] | 300 | |||||||||
Cash dividends | (28) | (28) | |||||||||
Business acquisition | 15 | 15 | |||||||||
Ending Balance at Dec. 31, 2018 | 582 | 1 | 1,335 | 1,609 | (216) | (2,264) | 465 | 117 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 81 | [1] | 70 | 70 | 11 | ||||||
Other comprehensive income (loss) | (53) | (51) | (51) | (2) | |||||||
Stock-based compensation, net | 14 | 5 | 9 | 14 | |||||||
Repurchase of shares of common stock | (20) | (20) | (20) | ||||||||
Repurchase of common stock | [1] | 20 | |||||||||
Cash dividends | (9) | (9) | |||||||||
Acquisition of non-controlling interest | 0 | 2 | 2 | (2) | |||||||
Ending Balance at Dec. 31, 2019 | 595 | 1 | $ 0 | 1,342 | 1,679 | (267) | (2,275) | 480 | 115 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (48) | [1] | (56) | (56) | 8 | ||||||
Other comprehensive income (loss) | (30) | (37) | 0 | (37) | 7 | ||||||
Stock-based compensation, net | 16 | 6 | 10 | 16 | |||||||
Repurchase of shares of common stock | (16) | (16) | (16) | ||||||||
Repurchase of common stock | [1] | 16 | |||||||||
Cash dividends | (7) | (7) | |||||||||
Ending Balance at Dec. 31, 2020 | $ 510 | $ 1 | $ 0 | $ 1,348 | $ 1,623 | $ (304) | $ (2,281) | $ 387 | $ 123 | ||
[1] | The Company has combined cash flows from discontinued operations with cash flows from continuing operations within the operating, investing and financing categories. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation: Visteon Corporation (the "Company" or "Visteon") financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") on a going concern basis, which contemplates the continuity of operations, realization of assets and satisfaction of liabilities in the normal course of business. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. Investments in affiliates over which the Company does not exercise control, but does have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. All other investments are measured at cost, less impairment, with changes in fair value recognized in net income. The Company determines whether the joint venture in which it has invested is a Variable Interest Entity (“VIE”) at the start of each new venture and when a reconsideration event has occurred. An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported herein. Considerable judgment is involved in making these determinations and the use of different estimates or assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results could differ from those reported herein. Events and changes in circumstances arising after December 31, 2020, including those resulting from the impacts of COVID-19 and related subsequent semiconductor supply shortage, as described below, will be reflected in management's estimates for future periods. The adverse impacts of the COVID-19 pandemic led to a significant vehicle production slowdown in the first half of 2020, which was followed by increased consumer demand and vehicle production schedules in the second half of 2020, particularly in the fourth quarter. This surge in demand has led to a worldwide semiconductor supply shortage in early 2021, as semiconductor suppliers have been unable to rapidly reallocate production lines to serve the automotive industry. The Company is working closely with suppliers and customers to minimize any potential adverse impacts, and continues to closely monitor the availability of semiconductor microchips and other component parts and raw materials, customer vehicle production schedules and any other supply chain inefficiencies that may arise, due to this or any other issue. However, any direct or indirect supply chain disruptions may have a material adverse impact on the Company's financial condition and results of operations or cash flows. The Company continues to actively monitor the potential supply chain impacts of this worldwide shortage and other ongoing potential impacts of COVID-19 and will seek to aggressively mitigate and minimize its impact on our business. Foreign Currency: Assets and liabilities for most of the Company’s non-U.S. businesses are translated into U.S. dollars at end-of-period exchange rates. Income and expense accounts of the Company’s non-U.S. businesses are translated into U.S. dollars at average-period exchange rates. The related translation adjustments are recorded in accumulated other comprehensive income (loss) ("AOCI") in the Consolidated Balance Sheets. The effects of remeasuring monetary assets and liabilities of the Company’s businesses denominated in currencies other than their functional currency are recorded as transaction gains and losses in the Consolidated Statements of Operations. Additionally, gains and losses resulting from transactions denominated in a currency other than the functional currency are recorded as transaction gains and losses in the Consolidated Statements of Operations. Net transaction gains and losses, inclusive of amounts associated with discontinued operations, decreased net income by $2 million, $3 million and $6 million for the years ended December 31, 2020, 2019 and 2018 respectively. Revenue Recognition: The Company generates revenue from the production of automotive vehicle cockpit electronics parts sold to Original Equipment Manufacturers ("OEMs") , or Tier 1 suppliers at the direction of the OEM, under long-term supply agreements supporting new vehicle production. Such agreements may also require related production for service parts subsequent to initial vehicle production periods. The Company’s contracts with customers involve various governing documents (sourcing agreements, master purchase agreements, terms and conditions agreements, etc.) which do not reach the level of a performance obligation of the Company until the Company receives either a purchase order and/or a customer release for a specific number of parts at a specified price, at which point the collective group of documents represent an enforceable contract. While the long-term supply agreements generally range from three to five years, customers make no commitments to volumes, and pricing or specifications can change prior to or during production. The Company recognizes revenue when control of the parts produced are transferred to the customer according to the terms of the contract, which is usually when the parts are shipped or delivered to the customer’s premises. Customers are generally invoiced upon shipment or delivery and payment generally occurs within 45 to 90 days and do not include significant financing components. Customers in China are often invoiced one month after shipment or delivery. Customer returns, when they occur, relate to quality rework issues and are not connected to any repurchase obligation of the Company. As of December 31, 2020, all unfulfilled performance obligations are expected to be fulfilled within the next twelve months. Revenue is measured based on the transaction price and the quantity of parts specified in a contract with a customer. Discrete price adjustments may occur during the vehicle production period in order for the Company to remain competitive with market prices or based on changes in product specifications. Some of these price adjustments are non-routine in nature and require estimation. In the event the Company concludes that a portion of the revenue for a given part may vary from the purchase order, the Company records revenue at the most likely amount to which the Company expects to be entitled based on historical experience and input from customer negotiations. The Company records such estimates within Net sales and Accounts receivable, net, within the Consolidated Statements of Operations and Consolidated Balance Sheets, respectively. The Company adjusts its pricing reserves at the earlier of when the most likely amount of consideration changes or when the consideration becomes fixed. In 2020, revenue recognized related to performance obligations satisfied in previous periods represented less than 1% of consolidated sales. The Company has no material contracts assets, contract liabilities or capitalized contract acquisition costs as of December 31, 2020. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Shipping and handling costs associated with outbound freight after control of the parts has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Restructuring Expense: Restructuring expense includes costs directly associated with exit or disposal activities. Such costs include employee severance and termination benefits, special termination benefits, contract termination fees and penalties, and other exit or disposal costs. In general, the Company records involuntary employee-related exit and disposal costs when there is a substantive plan for employee severance and related costs are probable and estimable. For one-time termination benefits (i.e., no substantive plan) and employee retention costs, expense is recorded when the employees are entitled to receive such benefits and the amount can be reasonably estimated. Contract termination fees and penalties and other exit and disposal costs are generally recorded when incurred. Debt Issuance Costs: The costs related to issuance or modification of long-term debt are deferred and amortized into interest expense over the life of each respective debt issue. Deferred amounts associated with debt extinguished prior to maturity are expensed upon extinguishment. Other Costs within Cost of Sales: Repair and maintenance costs, pre-production costs, and research and development expenses are expensed as incurred. Pre-production costs expensed represent engineering and development costs that are not contractually guaranteed for reimbursement by the customer. Research and development expenses include salary and related employee benefits, contractor fees, information technology, occupancy, telecommunications, depreciation, forward model program development, and advanced engineering activities. Research and development expenses were $201 million, $300 million, and $286 million in 2020, 2019 and 2018, respectively, which includes recoveries from customers of $134 million, $140 million and $146 million. Shipping and handling costs are recorded in the Company's Consolidated Statements of Operations as "Cost of sales." Net Earnings (Loss) Per Share Attributable to Visteon: Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to Visteon by the average number of shares of common stock outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) attributable to Visteon by the average number of common and potential dilutive common shares outstanding after deducting undistributed income allocated to participating securities. Performance based share units are considered contingently issuable shares and are included in the computation of diluted earnings per share if their conditions have been satisfied as if the reporting date was the end of the contingency period. Cash and Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or less, including short-term time deposits, commercial paper, repurchase agreements and money market funds to be cash equivalents. As of December 31, 2020 the Company's cash balances are invested in a diversified portfolio of cash and highly liquid cash equivalents including money market funds, commercial paper rated A2/P2 and above with maturity under three months, time deposits and other short-term cash investments, which mature under three months with highly rated banking institutions. The cost of such funds approximates fair value based on the nature of the investment. Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $3 million related to a Letter of Credit Facility, and $1 million related to cash collateral for other corporate purposes as of December 31, 2020. As of December 31, 2019, restricted cash includes $2 million related to a Letter of Credit Facility and $1 million related to cash collateral for other corporate purposes. Accounts Receivable: Accounts receivable are stated at the invoiced amount, less an allowance for doubtful accounts for estimated amounts not expected to be collected, and do not bear interest. The Company receives bank notes from certain customers in China to settle trade accounts receivable. The collection on such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. The Company may hold such bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. The Company has entered into arrangements with financial institutions to sell certain bank notes, generally maturing within nine months. Bank notes are sold with recourse but qualify as a sale as all rights to the notes have passed to the financial institution. Allowance for Doubtful Accounts: The Com pany establishes an allowance for doubtful accounts for accounts receivable based on the current expected credit loss impairment model (“CECL”). The Company elected to apply a historical loss rate based on historic write-offs by region to aging categories. The historical loss rate will be adjusted for current conditions and reasonable and supportable forecasts of future losses, as necessary. The Company may also record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. The allowance for doubtful accounts related to accounts receivable and related activity are summarized below: December 31, (In millions) 2020 2019 2018 Balance at beginning of year $ 10 $ 6 $ 8 Provision 1 6 2 Recoveries (3) (1) — Write-offs charged against the allowance (4) (1) (4) Balance at end of year $ 4 $ 10 $ 6 Provision for estimated uncollectible accounts receivable are included in Selling, general and administrative expenses in the Company's Consolidated Statements of Operations. Inventories: Inventories are stated at the lower of cost, determined on a first-in, first-out (“FIFO”) basis, or net realizable value. Cost includes the cost of materials, direct labor, in-bound freight and the applicable share of manufacturing overhead. The cost of inventories is reduced for excess and obsolete inventories based on management’s review of on-hand inventories compared to historical and estimated future sales and usage. Product Tooling: Product tooling includes molds, dies and other tools used in production of a specific part or parts of the same basic design owned either by the Company or its customers. Company owned tooling is capitalized and depreciated over the shorter of the expected useful life of the assets or the term of the supply arrangement, generally not exceeding six years. The Company had receivables of $26 million and $31 million as of December 31, 2020 and 2019, respectively, related to product tools, which will not be owned by the Company and for which there is a contractual agreement for reimbursement from the customer. Contractually Reimbursable Engineering Costs: Engineering, testing, and other costs incurred in the design and development of production parts are expensed as incurred, unless the cost reimbursement is contractually guaranteed in a customer contract, in which case costs are capitalized as incurred and subsequently reduced upon lump sum or piece price recoveries. Property and Equipment: Property and equipment is stated at cost or fair value for impaired assets. Property and equipment is depreciated principally using the straight-line method of depreciation over the related asset's estimated useful life. Generally, buildings and improvements are depreciated over a 40-year estimated useful life, leasehold improvements are depreciated on a straight-line basis over the initial lease term period, and machinery, equipment and other are depreciated over estimated useful lives ranging from 3 to 15 years. Certain costs incurred in the acquisition or development of software for internal use are capitalized. Capitalized software costs are amortized using the straight-line method over estimated useful lives generally ranging from 3 to 5 years. Asset impairment charges are recorded for assets held-in-use when events and circumstances indicate that such assets may not be recoverable and the undiscounted net cash flows estimated to be generated by those assets are less than their carrying amounts. If estimated future undiscounted cash flows are not sufficient to recover the carrying value of the assets, an impairment charge is recorded for the amount by which the carrying value of the assets exceeds fair value. Fair value is determined using appraisals, management estimates or discounted cash flow calculations. The Company classifies assets and liabilities as held for sale when management approves and commits to a formal plan of sale, generally following board of director approval, and it is probable that the sale will be completed within one year. The carrying value of assets and liabilities held for sale is recorded at the lower of carrying value or fair value less cost to sell, and the recording of depreciation is ceased. Leases: The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company estimates the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements containing lease and non-lease components which are accounted for as a single lease component. Goodwill: The Company performs either a qualitative or quantitative assessment of goodwill for impairment on an annual basis. Goodwill impairment testing is performed at the reporting unit level. The qualitative assessment considers several factors at the reporting unit level including the excess of fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market and industry metrics, actual performance compared to forecast performance, and the Company's current outlook on the business. If the qualitative assessment indicates it is more likely than not that goodwill is impaired, the reporting unit is quantitatively tested for impairment. To quantitatively test goodwill for impairment, the fair value of each reporting unit is determined and compared to the carrying value. An impairment charge is recognized for the amount by which the reporting unit's carrying value exceeds its fair value. Management has tested for impairment using a quantitative assessment and concluded that no impairment exists as of December 31, 2020. Intangible Assets: Definite-lived intangible assets are amortized over their estimated useful lives, and tested for impairment in accordance with the methodology discussed above under "Property and Equipment." Definite-lived intangible assets include: • Developed technology intangible assets which are amortized over average, estimated useful lives generally ranging from 6 to 12 years; • Customer-related intangible assets which are amortized over average, estimated useful lives generally ranging from 7 to 12 years; • Software development costs which are capitalized after the software product development reaches technological feasibility and until the software product becomes releasable to customers. These intangible assets are amortized using the straight-line method over estimated useful lives generally ranging from 3 to 5 years; and • Other intangible assets which are amortized using the straight-line method over estimated useful lives based on the nature of the intangible asset. Product Warranty and Recall: Amounts accrued for product warranty and recall claims are based on management’s best estimates of the amounts that will ultimately be required to settle such items. The Company’s estimates for product warranty and recall obligations are developed with support from its sales, engineering, quality and legal functions and include due consideration of contractual arrangements, past experience, current claims and related information, production changes, industry and regulatory developments and various other considerations. For further detail on the Company’s warranty obligations see Note 19, "Commitments and Contingencies." Income Taxes: Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets when it is more likely than not that such assets will not be realized. This assessment requires judgment, and must be done on a jurisdiction-by-jurisdiction basis. In determining the need for a valuation allowance, all available positive and negative evidence, including historical and projected financial performance, is considered along with any other pertinent information. Value Added Taxes: The Company reports value added taxes collected from customers and remitted to government authorities, on a net basis within Cost of sales. Fair Value Measurements: The Company uses fair value measurements in the preparation of its financial statements, which utilize various inputs including those that can be readily observable, corroborated or are generally unobservable. The Company utilizes market-based data and valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Additionally, the Company applies assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Financial Instruments: The Company uses derivative financial instruments, including forward contracts, swaps, and options to manage exposures to changes in currency exchange rates and interest rates. The Company's policy specifically prohibits the use of derivatives for speculative or trading purposes. Business Combinations: In accounting for business combinations, the purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. Determining the fair values of assets acquired and liabilities assumed requires management's judgment, the utilization of independent appraisal firms and often involves the use of estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. Recently Adopted Accounting Pronouncements Credit Losses - The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, "Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments", effective for fiscal years beginning after December 15, 2019. The guidance requires financial assets (or a group of financial assets) measured on the basis of amortized cost to be presented at the net amount expected to be collected. The guidance also requires that the statement of operations reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. Additionally, the guidance limits the credit loss to the amount by which fair value is below amortized cost. The Company adopted the guidance effective January 1, 2020. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. Income Taxes - The FASB issued ASU 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." The new guidance simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted in interim or annual periods with any adjustments reflected as of the beginning of the annual period that includes that interim period. Additionally, entities that elect early adoption must adopt all the amendments in the same period. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company adopted the guidance effective January 1, 2020. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. Retirement Benefits - In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The guidance (i) removes disclosures that are no longer considered cost beneficial, (ii) clarifies the specific requirements of disclosures and (iii) adds disclosure requirements including reasons for significant gains and losses related to changes in the benefit obligation. The amendments in this ASU are effective for fiscal years ending after December 15, 2020 and interim periods within those fiscal years. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting ." The guidance provides optional expedients and exceptions related to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. The guidance was effective upon issuance and generally can be applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During 2014 and 2015, the Company completed its divestiture of the majority of its global Interiors business (the "Interiors Divestiture") and completed the sale of its Argentina and Brazil interiors operations on December 1, 2016. Separately, the Company completed the sale of the majority of its global Climate business (the "Climate Transaction") during 2015. These transactions met the conditions required to qualify for discontinued operations reporting and accordingly the results of operations and the settlement of retained contingencies have been classified in income (loss) from discontinued operations, net of tax, in the Consolidated Statements of Operations. Discontinued operations are summarized as follows: Year Ended December 31, (In millions) 2019 2018 Net sales $ — $ — Cost of sales (2) (5) Gross margin (2) (5) Selling, general and administrative expenses — (1) Gain on Climate Transaction — 4 Restructuring expense 1 (1) Income (loss) from discontinued operations before income taxes (1) (3) Benefit for income taxes — 4 Net income (loss) from discontinued operations (1) 1 Net income (loss) from discontinued operations attributable to Visteon $ (1) $ 1 There were no discontinued operations during 2020. During 2019 the Company recognized approximately $2 million of corrections of judicial deposits related to former employees at a closed plant in Brazil. During 2018, the Company recognized a $3 million benefit on settlement of litigation matters with its former CEO as further described in Note 19, "Commitments and Contingencies." The Company also recorded a $4 million charge for legal expenses related to former employees at a closed plant in Brazil. Lastly, the Company recorded a $4 million income tax benefit during 2018 related to uncertain tax positions in connection with the Climate Transaction, resulting from statute expiration. |
Non-Consolidated Affiliates
Non-Consolidated Affiliates | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Non-Consolidated Affiliates | Non-Consolidated Affiliates Non-Consolidated Affiliate Transactions Visteon and Yangfeng Automotive Trim Systems Co. Ltd. ("YF") each own 50% of a joint venture under the name of Yanfeng Visteon Investment Co., Ltd. ("YFVIC"). In October 2014, YFVIC completed the purchase of YF’s 49% direct ownership in Yanfeng Visteon Automotive Electronics Co., Ltd ("YFVE") a consolidated joint venture of the Company ("The YFVIC Transaction"). The purchase by YFVIC was financed through a shareholder loan from YF and external borrowings, guaranteed by Visteon, which were paid in 2019. In 2018, the Company committed to make a $15 million investment in two entities principally focused on the automotive sector pursuant to limited partnership agreements. As a limited partner in each entity, the Company will periodically make capital contributions toward this total commitment amount. Through December 31, 2020, the Company had contributed approximately $5 million to these entities. These investments were classified as equity method investments beginning in 2020. Investments in Affiliates The Company recorded equity in the net income of non-consolidated affiliates of $6 million, $6 million and $13 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that an “other-than-temporary” decline in value has occurred, an impairment loss will be recorded, which is measured as the difference between the recorded book value and the fair value of the investment. As of December 31, 2020, the Company determined that no such indicators were present. Variable Interest Entities The Company determined that YFVIC is a VIE. The Company holds a variable interest in YFVIC primarily related to its ownership interests and subordinated financial support. The Company and YF each own 50% of YFVIC and neither entity has the power to control the operations of YFVIC; therefore, the Company is not the primary beneficiary of YFVIC and does not consolidate the joint venture. A summary of the Company's investments in non-consolidated equity method affiliates is provided below: December 31, (In millions) 2020 2019 YFVIC (50%) $ 50 $ 43 Others 10 5 Total investments in non-consolidated affiliates $ 60 $ 48 A summary of transactions with affiliates is shown below: Year Ended December 31, (In millions) 2020 2019 Billings to affiliates (a) $ 95 $ 75 Purchases from affiliates (b) $ 58 $ 73 (a) Primarily relates to parts production and engineering reimbursement (b) Primarily relates to engineering services as well as selling, general and administrative expenses A summary of the Company's investments in YFVIC is provided below: December 31, (In millions) 2020 2019 Payables due to YFVIC $ 9 $ 9 Exposure to loss in YFVIC Investment in YFVIC $ 50 $ 43 Receivables due from YFVIC 53 41 Subordinated loan receivable 6 8 Maximum exposure to loss in YFVIC $ 109 $ 92 |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities Given the economically-sensitive and highly competitive nature of the automotive electronics industry, the Company continues to closely monitor current market factors and industry trends, including potential impacts related to COVID-19, taking action as necessary which may include restructuring actions. However, there can be no assurance that any such actions will be sufficient to fully offset the impact of adverse factors on the Company or its results of operations, financial position and cash flows. Restructuring actions initiated during 2020 include the following: • In January, the Company approved a plan primarily related to European engineering and administrative functions to improve the Company’s efficiency and rationalize its footprint. The Company incurred $26 million of net restructuring expense for cash severance, retention, and termination costs related to this plan. As of December 31, 2020, $11 million remains accrued related to this action. • In March, the Company approved a global restructuring plan impacting engineering, administrative, and manufacturing functions to improve the Company’s efficiency and rationalize its footprint. The Company incurred $16 million of net restructuring expense for cash severance, retention, and termination costs related to this plan. As of December 31, 2020, $2 million remains accrued related to this action. • In September, the Company approved a plan in response to COVID-19 and to improve efficiency and rationalize the Company’s footprint. The Company incurred $32 million of net restructuring expense for cash severance, retention and termination costs related to this plan. As of December 31, 2020, $30 million remains accrued related to this action. • In December, the Company approved a plan impacting engineering, administrative, and manufacturing functions in Asia to improve the Company's efficiency and rationalize its footprint. The Company incurred $2 million of net restructuring expense for cash severance, retention, and termination costs related this plan. As of December 31, 2020, $2 million remains accrued related to this action. • During the year ended December 31, 2020, the Company incurred $1 million of restructuring expense for cash severance payments at two North American manufacturing facilities. During 2019, the Company approved a restructuring program impacting two European manufacturing facilities due to the end of certain product lines. During the year ended December 31, 2019, the Company recorded net restructuring expense of $2 million related to this program. During 2018, the Company approved various restructuring actions due to end of certain products and optimization of certain operations. During the years ended December 31, 2019 and December 31, 2018, the Company recorded net restructuring expense of $2 million and $24 million, respectively, related to these programs. As of December 31, 2020, $2 million remains accrued. During 2016, the Company approved a restructuring program impacting engineering and administrative functions to further align the Company's footprint with its core product technologies and customers. During the year ended December 31, 2018, the Company recorded net restructuring expense of $5 million related to this program. During the year ended December 31, 2018, the Company recorded net restructuring expense of approximately $1 million associated with a former European Interiors facility related to settlement of employee severance litigation. As of December 31, 2020, the Company retained restructuring reserves as part of the Interiors Divestiture of $2 million associated with completed programs for the fundamental reorganization of operations at facilities in Brazil and France. Restructuring Reserves Restructuring reserve balances of $39 million and $10 million as of December 31, 2020 are classified as Other current liabilities and Other non-current liabilities, respectively. The restructuring reserve balance of $10 million as of December 31, 2019 is classified as Other current liabilities. The Company anticipates that the activities associated with the current restructuring reserve balance will be substantially complete by end of 2022. The Company’s consolidated restructuring reserves and related activity are summarized below, including amounts associated with discontinued operations. (In millions) December 31, 2017 $ 24 Expense 24 Change in estimates 6 Utilization (30) Foreign currency (1) December 31, 2018 23 Expense 5 Change in estimates (2) Utilization (15) Foreign currency (1) December 31, 2019 10 Expense 67 Change in estimates 9 Utilization (39) Foreign currency 2 December 31, 2020 $ 49 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following components: December 31, (In millions) 2020 2019 Raw materials $ 114 $ 100 Work-in-process 25 28 Finished products 38 41 $ 177 $ 169 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other current assets are comprised of the following components: December 31, (In millions) 2020 2019 Joint venture receivables $ 53 $ 41 Recoverable taxes 52 61 Contractually reimbursable engineering costs 31 29 Prepaid assets and deposits 18 22 China bank notes 15 16 Royalty agreements 7 17 Other 4 7 $ 180 $ 193 The Company receives bank notes from certain customers in China to settle trade accounts receivable. The collection of such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. The Company redeemed $163 million and $81 million of China bank notes during the years ended December 31, 2020 and 2019, respectively. Remaining amounts outstanding at third-party institutions relate to sold bank notes will mature by June 30, 2021. Other non-current assets are comprised of the following components: December 31, (In millions) 2020 2019 Deferred tax assets $ 55 $ 59 Contractually reimbursable engineering costs 31 24 Recoverable taxes 21 28 Royalty agreements 8 11 Joint venture note receivables 7 8 Other 13 20 $ 135 $ 150 Current and non-current contractually reimbursable engineering costs are related to pre-production design and development costs incurred pursuant to long-term supply arrangements that are contractually guaranteed for reimbursement by customers. The Company expects to receive cash reimbursement payments of approximately $31 million in 2021, $16 million in 2022, $8 million in 2023, $3 million in 2024 and $4 million in 2025 and beyond. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consists of the following: December 31, (In millions) 2020 2019 Land $ 12 $ 12 Buildings and improvements 96 83 Machinery, equipment and other 706 599 Construction in progress 44 80 Product tooling 62 53 Total property and equipment 920 827 Accumulated depreciation and amortization (484) (391) Property and equipment, net $ 436 $ 436 Depreciation and product tooling amortization expenses are summarized as follows: Year Ended December 31, (In millions) 2020 2019 2018 Depreciation $ 83 $ 78 $ 73 Amortization 7 6 3 $ 90 $ 84 $ 76 For the year ended December 31, 2019, the Company recorded non-cash asset impairment charges of $2 million in cost of sales related to declines in the fair values of certain fixed assets. The net book value of capitalized internal use software costs was approximately $18 million and $21 million as of December 31, 2020 and 2019, respectively. Related amortization expense was approximately $9 million, $9 million and $7 million for the years ended 2020, 2019 and 2018, respectively. Amortization expense of approximately $7 million, $5 million, $3 million, $2 million, and $1 million is expected for the annual periods ended December 31, 2021, 2022, 2023, 2024, and 2025 respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: December 31, 2020 December 31, 2019 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangible Gross Intangibles Accumulated Amortization Net Intangible Definite-Lived: Developed technology 6 $ 41 $ (38) $ 3 $ 40 $ (35) $ 5 Customer related 10 95 (64) 31 89 (51) 38 Capitalized software development 3 44 (7) 37 32 (5) 27 Other 20 14 (7) 7 15 (4) 11 Subtotal 194 (116) 78 176 (95) 81 Indefinite-Lived: Goodwill 49 — 49 46 — 46 Total $ 243 $ (116) $ 127 $ 222 $ (95) $ 127 Capitalized software development consists of software development costs intended for integration into customer products. The Company recorded approximately $14 million, $16 million and $15 million of amortization expense related to definite-lived intangible assets for the years ended December 31, 2020, 2019 and 2018, respectively. The Company currently estimates annual amortization expense to be $18 million for both 2021 and 2022, $15 million for 2023, $9 million for 2024, and $8 million for 2025. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily for corporate offices, technical and engineering centers, customer centers, vehicles and certain equipment. As of December 31, 2020 assets and related accumulated depreciation recorded under finance leasing arrangements were not material. Certain of the Company's lease agreements include rental payments adjusted periodically primarily for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company subleases certain real estate to third parties, which primarily consists of operating leases related to the Company’s principal executive offices in Van Buren Township, Michigan. For the years ended December 31, 2020 and 2019, the weighted average remaining lease term and discount rate were 6 years and 4.1% and 7 years and 4.5%, respectively. The components of lease expense are as follows: Year Ended December 31, (In millions) 2020 2019 Operating lease cost (includes immaterial variable lease costs) $ (42) $ (41) Short-term lease cost (1) (1) Sublease income 5 5 Total lease cost $ (38) $ (37) Other information related to leases is as follows: Year Ended December 31, (In millions) 2020 2019 Cash out flows from operating leases $ 40 $ 38 Right-of-use assets obtained in exchange for lease obligations $ 38 $ 38 Future minimum lease payments under non-cancellable leases is as follows: (In millions) 2021 $ 38 2022 35 2023 32 2024 29 2025 24 2026 and thereafter 43 Total future minimum lease payments 201 Less imputed interest (23) Total lease liabilities $ 178 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities are summarized as follows: December 31, (In millions) 2020 2019 Product warranty and recall accruals $ 52 $ 34 Deferred income 46 22 Restructuring reserves 39 10 Non-income taxes payable 15 17 Royalty reserves 13 19 Joint venture payables 9 9 Income taxes payable 5 7 Other 30 29 $ 209 $ 147 Other non-current liabilities are summarized as follows: December 31, (In millions) 2020 2019 Derivative financial instruments $ 38 $ 14 Product warranty and recall accruals 12 15 Restructuring reserves 10 — Deferred income 7 9 Royalty agreements 6 13 Income tax reserves 6 5 Other 13 16 $ 92 $ 72 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s short and long-term debt consists of the following: Weighted Average Carrying Value (In millions) 2020 2019 2020 2019 Short-Term Debt: Short-term borrowings —% 4.3% $ — $ 37 Long-Term Debt: Term facility, net 1.9% 3.2% $ 349 $ 348 Short-Term Debt Short-term borrowings, primarily related to the Company's non-U.S. joint ventures, were fully repaid during the third quarter of 2020. As of December 31, 2020, the available borrowings under these affiliate credit facilities are $182 million. Long-Term Debt As of December 31, 2020, the Company has an amended credit agreement ("Credit Agreement") which includes a $350 million Term Facility maturing March 24, 2024 and a $400 million Revolving Credit Facility which matures the earlier of December 24, 2024, 90 days prior to the scheduled maturity of the Term Facility, or the date of the termination of the Company's credit agreement. On March 19, 2020, the Company borrowed the entire amount of revolving loans available under the Revolving Credit Facility to increase its cash position and maximize its flexibility in response to unprecedented uncertainty related to the impact of COVID-19. On September 24, 2020, the Company fully repaid the amount borrowed under the Revolving Credit Facility following stronger than expected industry recovery and improved Company performance in the third quarter of 2020. The Company has no outstanding borrowings on the Revolving Credit Facility as of December 31, 2020. Interest on the Term Facility loans accrue at a rate equal to a LIBOR-based rate plus an applicable margin of 1.75% per annum. Loans under the Company's Revolving Credit Facility accrue interest at a rate equal to a LIBOR-based rate plus an applicable margin of between 1.00% - 2.00%, as determined by the Company's total gross leverage ratio. The Credit Agreement requires compliance with customary affirmative and negative covenants and contains customary events of default. The Revolving Credit Facility also requires that the Company maintain a total net leverage ratio no greater than 3.50:1.00. During any period when the Company’s corporate and family ratings meet investment grade ratings, certain of the negative covenants are suspended. As of December 31, 2020, the Company was in compliance with all its debt covenants. The Revolving Credit Facility also provides $75 million availability for the issuance of letters of credit and a maximum of $20 million for swing line borrowings. Any amount of the facility utilized for letters of credit or swing line loans outstanding will reduce the amount available under the existing Revolving Credit Facility. The Company may request increases in the limits under the Credit Agreement and may request the addition of one or more term loan facilities. Outstanding borrowings may be prepaid without penalty (other than borrowings made for the purpose of reducing the effective interest rate margin or weighted average yield of the loans). There are mandatory prepayments of principal in connection with: (i) excess cash flow sweeps above certain leverage thresholds, (ii) certain asset sales or other dispositions, (iii) certain refinancing of indebtedness and (iv) over-advances under the Revolving Credit Facility. There are no excess cash flow sweeps required at the Company’s current leverage level. All obligations under the Credit Agreement and obligations with respect to certain cash management services and swap transaction agreements between the Company and its lenders are unconditionally guaranteed by certain of the Company’s subsidiaries. Under the terms of the Credit Agreement, any amounts outstanding are secured by a first-priority perfected lien on substantially all property of the Company and the subsidiaries party to the security agreement, subject to certain limitations. Other The Company has a $5 million letter of credit facility, whereby the Company is required to maintain a cash collateral account equal to 103% (110% for non-U.S. dollar denominated letters) of the aggregate stated amount of issued letters of credit and must reimburse any amounts drawn under issued letters of credit. The Company had $3 million of outstanding letters of credit issued under this facility secured by restricted cash, as of December 31, 2020. Additionally, the Company had $8 million of locally issued letters of credit with less than $1 million of collateral as of December 31, 2020, to support various tax appeals, customs arrangements and other obligations at its local affiliates. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plans The Company sponsors pay related benefit plans for employees in the U.S., UK, Germany, Brazil, France, Mexico, Japan, and Canada. Employees in the U.S. and UK are no longer accruing benefits under the Company's defined benefit plans as these plans were frozen. The Company’s defined benefit plans are partially funded with the exception of certain supplemental benefit plans for executives and certain non-U.S. plans, primarily in Germany, which are unfunded. The Company's expense for all defined benefit pension plans, is as follows: U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, (In millions, except percentages) 2020 2019 2018 2020 2019 2018 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ — $ (2) $ (2) $ (2) Pension financing benefit (cost): Interest cost (24) (30) (27) (7) (8) (8) Expected return on plan assets 40 40 41 8 10 9 Amortization of losses and other (1) — — (2) (1) (2) Settlements and curtailments (5) — — — — — Restructuring related pension cost: Special termination benefits (a) (3) — (2) (4) (1) — Net pension income (expense) $ 7 $ 10 $ 12 $ (7) $ (2) $ (3) Weighted Average Assumptions: Discount rate 3.34 % 4.33 % 3.65 % 2.39 % 3.34 % 3.28 % Compensation increase N/A N/A N/A 3.16 % 3.51 % 3.62 % Long-term return on assets 6.60 % 6.78 % 6.74 % 3.98 % 4.73 % 4.86 % (a) Primarily related to restructuring actions The Company's total accumulated benefit obligations for all defined benefit plans was $1,199 million and $1,116 million as of Year Ended December 31, (In millions) 2020 2019 Accumulated benefit obligation $ 1,177 $ 1,088 Projected benefit obligation $ 1,190 $ 1,107 Fair value of plan assets $ 886 $ 830 Assumptions used by the Company in determining its defined benefit pension obligations as of December 31, 2020 and 2019 are summarized in the following table: U.S. Plans Non-U.S. Plans Weighted Average Assumptions 2020 2019 2020 2019 Discount rate 2.60 % 3.34 % 1.78 % 2.39 % Rate of increase in compensation N/A N/A 2.14 % 3.16 % The Company’s obligation for all defined benefit pension plans, is as follows: U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, (In millions) 2020 2019 2020 2019 Change in Benefit Obligation: Benefit obligation — beginning $ 838 $ 760 $ 300 $ 250 Service cost — — 2 2 Interest cost 24 30 7 8 Actuarial loss (gain) 97 88 15 40 Settlements (and curtailments) (37) — (4) — Special termination benefits 3 — 4 1 Foreign exchange translation — — 8 4 Benefits paid and other (34) (40) (10) (5) Benefit obligation — ending $ 891 $ 838 $ 322 $ 300 Change in Plan Assets: Plan assets — beginning $ 630 $ 567 $ 232 $ 200 Actual return on plan assets 82 102 21 26 Sponsor contributions 18 1 6 7 Settlements (37) — (2) — Foreign exchange translation — — 3 4 Benefits paid and other (34) (40) (10) (5) Plan assets — ending $ 659 $ 630 $ 250 $ 232 Total funded status at end of period $ (232) $ (208) $ (72) $ (68) Balance Sheet Classification: Other non-current assets $ — $ — $ 2 $ 3 Accrued employee liabilities — — (1) (2) Employee benefits (232) (208) (73) (69) Accumulated other comprehensive loss: Actuarial loss 127 79 52 50 Tax effects/other — (1) (14) (14) $ 127 $ 78 $ 38 $ 36 Components of the net change in AOCI related to all defined benefit pension plans, exclusive of amounts attributable to non-controlling interests on the Company’s Consolidated Statements of Changes in Equity for the years ended December 31, 2020 and 2019, are as follows: U.S. Plans Non-U.S. Plans (In millions) 2020 2019 2020 2019 Actuarial loss $ 55 $ 26 $ 1 $ 23 Deferred taxes — (1) — (5) Currency/other — — 3 1 Reclassification to net income (1) — (2) (1) Settlements (5) — — — $ 49 $ 25 $ 2 $ 18 Actuarial loss for the year ended December 31, 2020 is primarily related to a decrease in discount rates partially offset by an increase in return on assets. Actuarial gains and losses are amortized using the 10% corridor approach representing 10% times the greater of plan assets and the projected benefit obligation. Generally, the expected return is determined using a market- related value of assets where gains (losses) are recognized in a systematic manner over five years. For less significant plans, fair value is used. During 2020 the Company transferred a portion of the benefit obligation related to its defined benefit U.S. pension plan to a third-party issuer. The transaction met the criteria for settlement accounting, and accordingly, the Company recognized a $5 million pension settlement charge. Benefit payments, which reflect expected future service, are expected to be paid by the Company plans as follows: (In millions) U.S. Plans Non-U.S. Plans 2021 $ 41 $ 6 2022 39 7 2023 39 8 2024 39 10 2025 40 9 Years 2026 - 2030 216 53 During the year ended December 31, 2020, cash contributions to the Company's U.S. employee retirement pension plans were $18 million and cash contributions of $6 million related to its non-U.S. employee retirement pension plans. Contributions related to certain non-U.S. plans of approximately $2 million have been deferred until 2024, due to COVID-19 relief measures. Additionally, the Company expects to make contributions to its U.S. defined benefit pension plans of $17 million and non-US defined benefit pension plans of $7 million during 2021. The Company’s expected 2021 contributions may be revised. Substantially all of the Company’s defined benefit pension plan assets are managed by external investment managers and held in trust by third-party custodians. The selection and oversight of these external service providers is the responsibility of the investment committees of the Company and their advisers. The selection of specific securities is at the discretion of the investment manager and is subject to the provisions set forth by written investment management agreements and related policy guidelines regarding permissible investments, risk management practices and the use of derivative securities. Derivative securities may be used by investment managers as efficient substitutes for traditional securities, to reduce portfolio risks or to hedge identifiable economic exposures. The use of derivative securities to engage in unrelated speculation is expressly prohibited. The primary objective of the pension funds is to pay the plans’ benefit and expense obligations when due. Given the long-term nature of these plan obligations and their sensitivity to interest rates, the investment strategy is intended to improve the funded status of its U.S. and non-U.S. plans over time while maintaining a prudent level of risk. Risk is managed primarily by diversifying each plan’s target asset allocation across equity, fixed income securities, and alternative investment strategies, and then maintaining the allocation within a specified range of its target. In addition, diversification across various investment subcategories within each plan is also maintained within specified ranges. The Company’s retirement plan asset allocation as of December 31, 2020 and 2019 and target allocation for 2021 are as follows: Target Allocation Percentage of Plan Assets U.S. Non-U.S. U.S. Non-U.S. 2021 2021 2020 2019 2020 2019 Equity securities 38 % 34 % 41 % 37 % 29 % 38 % Fixed income 15 % 43 % 15 % 18 % 51 % 39 % Alternative strategies 46 % 14 % 39 % 44 % 12 % 14 % Cash 1 % 3 % 5 % 1 % 2 % 4 % Other — % 6 % — % — % 6 % 5 % 100 % 100 % 100 % 100 % 100 % 100 % The expected long-term rate of return for defined benefit pension plan assets was selected based on various inputs, including returns projected by various external sources for the different asset classes held by and to be held by the Company’s trusts and its targeted asset allocation. These projections incorporate both historical returns and forward-looking views regarding capital market returns, inflation, and other variables. Pension plan assets are valued at fair value using various inputs and valuation techniques. A description of the inputs and valuation techniques used to measure the fair value for each class of plan assets is included in Note 17, "Fair Value Measurements." Discount Rate for Estimated Service and Interest Cost The Company uses the spot rate method to estimate the service and interest components of net periodic benefit cost for pension benefits for its U.S. and certain non-U.S. plans. The Company has elected to utilize an approach that discounts individual expected cash flows underlying interest and service costs using the applicable spot rates derived from the yield curve used to determine the benefit obligation to the relevant projected cash flows. The discount rate assumption is based on market rates for a hypothetical portfolio of high-quality corporate bonds rated Aa or better with maturities closely matched to the timing of projected benefit payments for each plan at its annual measurement date. The Company used discount rates ranging from 0.8% to 8.75% to determine its pension and other benefit obligations as of December 31, 2020, including weighted average discount rates of 2.60% for U.S. pension plans and 1.78% for non-U.S. pension plan. Defined Contribution Plans Most U.S. salaried employees and certain non-U.S. employees are eligible to participate in defined contribution plans by contributing a portion of their compensation which is partially matched by the Company. Matching contributions for the U.S. defined contribution plan are 100% on the first 6% of pay contributed. Matching contributions were suspended from May 1, 2020 to September 30, 2020 as a part of the cost saving actions in response to the COVID-19 pandemic. The expense related to all matching contributions was approximately $5 million in 2020, $8 million in 2019, and $7 million in 2018. Other Postretirement Employee Benefit Plans In Canada, the Company has a financial obligation for the cost of providing other postretirement health care and life insurance benefits to certain of its employees under Company-sponsored plans. These plans generally pay for the cost of health care and life insurance for retirees and dependents, less retiree contributions and co-pays. Other postretirement benefit obligations were $1 million at December 31, 2020 and 2019. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Visteon Corporation 2010 Incentive Plan (the “2010 Incentive Plan”) provided for the grant of up to 4.75 million shares of common stock for restricted stock awards (“RSAs”), restricted stock units (“RSUs”), non-qualified stock options ("Stock Options"), stock appreciation rights (“SARs”), performance based share units ("PSUs"), and other stock based awards. At the Company’s annual meeting of shareholders in June 2020, the shareholders approved the Visteon Corporation 2020 Incentive Plan (the “2020 Incentive Plan”), replacing the 2010 Incentive Plan. Pursuant to the 2020 Incentive Plan, the Company may grant up to 1.5 million shares of common stock for RSA, RSUs, Stock Options, SARs, PSUs, and other stock based awards. The Company's stock-based compensation instruments are accounted for as equity awards or liability awards based on settlement intention as follows: • For equity settled stock-based compensation instruments, compensation cost is measured based on grant date fair value of the award and is recognized over the applicable service period. For equity settled stock-based compensation instruments, the delivery of Company shares may be on a gross settlement basis or a net settlement basis. The Company's policy is to deliver such shares using treasury shares or issuing new shares. • Cash settled stock-based compensation instruments are subject to liability accounting. At the end of each reporting period, the vested portion of the obligation for cash settled stock-based compensation instruments is adjusted to fair value based on the period-ending market prices of the Company's common stock. Related compensation expense is recognized based on changes to the fair value over the applicable service period. Generally, the Company's stock-based compensation instruments are subject to graded vesting and recognized on an accelerated basis. The settlement intention of the awards is at the discretion of the Organization and Compensation Committee of the Company's Board of Directors. These stock-based compensation awards generally provide for accelerated vesting upon a change-in-control, which is defined in the 2020 Incentive Plan, which requires a double-trigger. Accordingly, the Company may be required to accelerate recognition of related expenses in future periods in connection with the change-in-control events and subsequent changes in employee responsibilities, if any. The total recognized and unrecognized stock-based compensation expense is as follows: Year Ended December 31, Unrecognized Stock-Based Compensation Expense (In millions) 2020 2019 2018 December 31, 2020 Performance based share units $ 6 $ 6 $ (2) $ 7 Restricted stock units 10 9 8 13 Stock options 2 2 2 1 Total stock-based compensation expense $ 18 $ 17 $ 8 $ 21 During 2018, the Company recognized a $10 million benefit on forfeiture of unvested shares due to the settlement of a litigation matter as further described in Note 19, "Commitments and Contingencies." Performance Based Share Units The number of PSUs that will vest is based on the Company's achievement of a pre-established relative total shareholder return goal compared to its peer group of companies over a period of three years which may range from 0% to 200% of the target award. A summary of PSU activity is provided below: PSUs Weighted Average Grant Date Fair Value (In thousands) Non-vested as of December 31, 2017 461 $ 58.76 Granted 87 124.90 Vested (63) 105.29 Forfeited (290) 33.85 Non-vested as of December 31, 2018 195 110.42 Granted 71 111.98 Vested (73) 89.74 Forfeited (23) 118.87 Non-vested as of December 31, 2019 170 118.77 Granted 94 84.20 Vested (66) 116.35 Forfeited (18) 100.51 Non-vested as of December 31, 2020 180 $ 106.48 The grant date fair value for PSUs was determined using the Monte Carlo valuation model. Unrecognized compensation expense as of December 31, 2020 for PSUs to be settled in shares of the Company's common stock was $7 million for the non-vested portion and will be recognized over the remaining vesting period of approximately 1.7 years. The Company made cash settlement payments of less than $1 million for PSUs expected to be settled in cash during the years ended December 31, 2020 and 2019. Unrecognized compensation expense as of December 31, 2020 was less than $1 million for the non-vested portion of these awards and will be recognized over the remaining vesting period of approximately 2.0 years. The Monte Carlo valuation model requires management to make various assumptions including the expected volatility, risk-free interest rate and dividend yield. Volatility is based on the Company’s stock history using daily stock prices over a period commensurate with the expected life of the award. The risk-free rate was based on the U.S. Treasury yield curve in relation to the contractual life of the stock-based compensation instrument. The dividend yield was based on historical patterns and future expectations for Company dividends. Weighted average assumptions used to estimate the fair value of PSUs granted during the years ended as of December 31, 2020 and 2019 are as follows: Year Ended December 31, 2020 2019 Expected volatility 41.88 % 31.20 % Risk-free rate 0.67 % 2.43 % Expected dividend yield — % — % Restricted Stock Units The grant date fair value of RSUs is measured as the average of the high and low market price of the Company's common stock on the date of grant. These awards generally vest in one-third increments on the grant date anniversary over a three year vesting period. The Company granted 223,000, 133,000 and 70,000 RSUs, expected to be settled in shares, during the years ended December 31, 2020, 2019 and 2018, respectively, at a weighted average grant date fair value of $75.52, $79.88 and $123.52 per share, respectively. Unrecognized compensation expense as of December 31, 2020 was $12 million for non-vested RSUs and will be recognized over the remaining vesting period of approximately 1.7 years. The Company granted 8,000 RSUs, expected to be settled in cash, during each of the years ended December 31, 2020 and 2019, at weighted average grant date fair values of $76.27 and $75.02 per share, respectively. The Company made cash settlement payments of less than $1 million during the years ended December 31, 2020, 2019, and 2018. Unrecognized compensation expense as of December 31, 2020 was $1 million for non-vested RSUs and will be recognized on a weighted average basis over the remaining vesting period of approximately 1.7 years. A summary of RSU activity is provided below: RSUs Weighted Average Grant Date Fair Value (In thousands) Non-vested as of December 31, 2017 230 $ 87.09 Granted 70 123.52 Vested (102) 96.34 Forfeited (34) 61.69 Non-vested as of December 31, 2018 164 105.24 Granted 141 79.61 Vested (71) 93.60 Forfeited (18) 92.18 Non-vested as of December 31, 2019 216 90.98 Granted 231 77.57 Vested (84) 95.70 Forfeited (46) 77.47 Non-vested as of December 31, 2020 317 $ 82.31 Additionally, as of December 31, 2020, the Company has 85,000 outstanding RSU's awarded at a weighted average grant date fair value of $81.05 under the Non-Employee Director Stock Unit Plan which vested immediately but are not settled until the participant terminates board service. Beginning in the third quarter 2020, non-employee director RSU awards were granted under the terms and conditions of the 2020 Incentive Plan, and these awards vest approximately one year from the date of grant. Activity related to non-employee director grants under the 2020 Incentive Plan is included in RSU table above. Stock Options and Stock Appreciation Rights Stock Options and SARs are recorded with an exercise price equal to the average of the high and low market price of the Company's common stock on the date of grant. The grant date fair value of these awards is measured using the Black-Scholes option pricing model. Stock Options and SARs generally vest in one-third increments on the grant date anniversary over a three year vesting period and have an expiration date 7 or 10 years from the date of grant. The Company received payments of $2 million, less than $1 million and $3 million related to the exercise of Stock Options with total intrinsic value of options exercised of less than $1 million, less than $1 million, and $2 million during the years ended December 31, 2020, 2019, and 2018, respectively. Unrecognized compensation expense for non-vested Stock Options as of December 31, 2020 was approximately $1 million and is expected to be recognized over a weighted average period of 1.5 years. The Black-Scholes option pricing model requires management to make various assumptions including the expected term, risk-free interest rate, dividend yield and expected volatility. The expected term represents the period of time that granted awards are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of the stock-based compensation instrument. The dividend yield is based on historical patterns and future expectations for Company dividends. Volatility is based on the Company’s stock history using daily stock prices over a period commensurate with the expected life of the award. Weighted average assumptions used to estimate the fair value of awards granted during the years ended December 31, 2020, 2019 and 2018 are as follows: Stock Options 2020 2019 2018 Expected term (in years) 5 5 5 Expected volatility 35.23 % 27.69 % 22.95 % Risk-free interest rate 0.75 % 2.43 % 2.58 % Expected dividend yield — % — % — % A summary of Stock Options and SAR activity is provided below: Stock Options Weighted Average SARs Weighted Average (In thousands) (In thousands) December 31, 2017 166 $ 81.72 8 $ 69.21 Granted 78 124.35 — — Exercised (31) 68.02 (1) 51.25 December 31, 2018 213 99.36 7 72.84 Granted 106 80.97 — — Exercised (4) 59.37 — — Forfeited or expired (32) 96.02 — — December 31, 2019 283 93.51 7 72.84 Granted 112 66.98 — — Exercised (27) 84.98 (1) 56.59 Forfeited or expired (20) 96.12 — — December 31, 2020 348 $ 85.46 6 $ 74.77 Exercisable at December 31, 2020 162 $ 94.53 6 $ 74.77 Stock Options and SARs Outstanding Exercise Price Number Outstanding Weighted Weighted (In thousands) (In years) $10.00 - $60.00 4 0.9 $ 51.19 $60.01 - $80.00 146 5.2 $ 68.52 $80.01 - $100.00 143 4.4 $ 86.71 $100.01 - $130.00 61 4.3 $ 124.35 354 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision Details of the Company's income tax provision from continuing operations are provided in the table below: Year Ended December 31, (In millions) 2020 2019 2018 Income (Loss) Before Income Taxes: (a) U.S $ (65) $ 5 $ 76 Non-U.S 39 95 127 Total income (loss) before income taxes $ (26) $ 100 $ 203 Current Tax Provision: Non-U.S $ 21 29 $ 42 Deferred Tax Provision (Benefit): Non-U.S 7 (5) 1 Total deferred tax provision (benefit) 7 (5) 1 Provision for income taxes $ 28 $ 24 $ 43 (a) Income (loss) before income taxes excludes equity in net income of non-consolidated affiliates. A summary of the differences between the provision for income taxes calculated at the U.S. statutory tax rate of 21% and the consolidated income tax provision from continuing operations is shown below: Year Ended December 31, (In millions) 2020 2019 2018 Tax provision (benefit) at U.S. statutory rate of 21% for 2020, 2019, and 2018 $ (5) $ 21 $ 43 Impact of foreign operations (15) 23 16 Non-U.S withholding taxes 5 10 14 Tax holidays in foreign operations (4) (5) (5) State and local income taxes — — 3 Tax reserve adjustments 1 2 (6) Change in valuation allowance 46 (10) (81) Impact of U.S. tax reform — (18) 33 Impact of tax law change — — 35 Research credits (1) (1) (5) Other 1 2 (4) Provision for income taxes $ 28 $ 24 $ 43 The Company’s provision for income taxes for continuing operations was $28 million for the year ended December 31, 2020. The tax benefit related to foreign operations of $15 million reflects $10 million income tax benefit related to electing to deduct expiring foreign tax credits previously derecognized; and $5 million income tax benefit to reflect reduction in outside basis deferred tax liabilities and foreign tax credits associated with income from foreign subsidiaries treated as branches for U.S. income tax purposes. These amounts were entirely offset by a corresponding $15 million income tax expense associated with an increase in the U.S. valuation allowance. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the U.S. Internal Revenue Code. Changes included, but were not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the migration from a worldwide tax system to a territorial system, which instituted a dividends received deduction for foreign earnings with a one-time transition tax on cumulative post-1986 foreign earnings, a modification of the characterization and treatment of certain intercompany transactions and the creation of a new U.S. corporate minimum tax on certain global intangible low-tax income (“GILTI”) of foreign subsidiaries. In accordance with Staff Accounting Bulletin 118 ("SAB 118"), income tax effects of the Act were refined upon obtaining, preparing, and analyzing additional information during the measurement period. During 2018, the Company recorded a $33 million charge related to the one-time transition tax, the impact of which was entirely offset by a corresponding income tax benefit associated with a reduction in the U.S. valuation allowance. During 2019, the Company further adjusted its estimate of the impact of U.S. tax reform primarily related to assumptions made in calculating its 2018 GILTI inclusion resulting in an $18 million income tax benefit, the impact of which was entirely offset by a corresponding income tax charge associated with an increase in the U.S. valuation allowance. The Company has made policy elections to account for the GILTI as a period cost when incurred and apply the incremental cash tax savings approach when analyzing the impact GILTI could have on its U.S. valuation allowance assessment. Items impacting the Company’s 2019 effective tax rate include tax expense related to foreign operations of $23 million which reflects $6 million tax expense on foreign earnings taxed at rates higher than the U.S. statutory rate; $8 million related to income tax expense, net of foreign tax credits, associated with income from foreign subsidiaries treated as branches for U.S. income tax purposes; and $9 million related to U.S. income taxes in connection with GILTI and Subpart F inclusions, net of foreign tax credits, excluding the transition tax on the deemed repatriation of foreign earnings described above. These amounts were offset by a corresponding $17 million income tax benefit associated with a reduction in the U.S. valuation allowance. Tax reserve adjustments of $2 million primarily relates to certain transfer pricing positions taken between affiliates in Europe and the U.S. Items impacting the Company’s 2018 effective tax rate include tax expense related to foreign operations of $16 million which reflects $8 million tax expense on foreign earnings taxed at rates higher than the U.S. statutory rate and $8 million related to U.S. income taxes in connection with GILTI and Subpart F inclusions, net of foreign tax credits, excluding the transition tax on the deemed repatriation of foreign earnings described above, entirely offset by a corresponding $8 million decrease in the U.S. valuation allowance. Tax reserve adjustments of $6 million primarily reflects the favorable audit developments in connection with uncertain tax positions related to goodwill tax amortization at an affiliate in Asia. The $35 million unfavorable impact of tax law change in 2018 (excluding the Act) reflects the reduction in deferred tax assets, including net operating loss carryforwards, primarily attributable to the reduction in the corporate income tax rate in France, which was entirely offset by the related valuation allowance. Deferred Income Taxes and Valuation Allowances The Company recorded deferred tax liabilities, net of valuation allowances, for U.S. and non-U.S. income taxes and non-U.S. withholding taxes of approximately $27 million and $26 million as of December 31, 2020 and 2019, respectively, on the undistributed earnings of certain consolidated and unconsolidated foreign affiliates as such earnings are intended to be repatriated in the foreseeable future. The amount the Company expects to repatriate is based upon a variety of factors including current year earnings of the foreign affiliates, foreign investment needs, and the cash flow needs the Company has in the U.S. and this practice has not changed following incurring the transition tax under the Act. The Company has not provided for deferred income taxes or foreign withholding taxes on the remainder of undistributed earnings from consolidated foreign affiliates because such earnings are considered to be permanently reinvested. It is not practicable to determine the amount of deferred tax liability on such earnings as the actual tax liability, if any, is dependent on circumstances existing when remittance occurs. The Company evaluates its deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. This assessment considers, among other matters, the nature, frequency, and amount of recent losses, the duration of statutory carryforward periods, and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. If (i) recent improvements to financial results continue in the U.S., or (ii) recovery of the global economy after the COVID-19 pandemic occurs faster than expected, the Company believes it is possible that sufficient positive evidence may be available to release all, or a portion, of its U.S. valuation allowance in the next twelve to 24 months. In March 2019, the closure of tax audits in Germany allowed the Company to initiate a tax planning strategy previously determined not to be prudent. This strategy provided the necessary positive evidence to support the future utilization of a portion of the Company's deferred tax assets in Germany resulting in a $12 million valuation allowance release during the first quarter of 2019. In September 2020, the Company approved a restructuring program impacting engineering and administrative functions globally, including German operations. The September action, combined with earlier 2020 actions, necessitated a reassessment of the future utilization of deferred tax assets in Germany resulting in recording a $4 million discrete income tax expense adjustment during the third quarter of 2020 to increase the valuation allowance. During the fourth quarter of 2020, the Company completed an analysis related to its Brazil affiliate, Visteon Amazonas (“Amazonas”), resulting in the permanent exclusion of certain incentive income from taxable profits. Consequently, the Company concluded the generation of future taxable income is no longer sufficient to realize the Company’s net deferred tax assets at Amazonas resulting in recording a $3 million valuation allowance during the fourth quarter of 2020. The components of deferred income tax assets and liabilities are as follows: December 31, (In millions) 2020 2019 Deferred Tax Assets: Net operating losses and credit carryforwards $ 1,192 $ 1,099 Employee benefit plans 80 73 Lease liability 59 55 Fixed assets and intangibles 12 14 Warranty 14 11 Inventory 9 9 Restructuring 13 5 Capitalized expenditures for tax reporting 5 5 Deferred income 10 4 Other 63 55 Valuation allowance (1,263) (1,132) Total deferred tax assets $ 194 $ 198 Deferred Tax Liabilities: Outside basis investment differences, including withholding tax $ 65 $ 64 Right-of-use assets 57 54 Fixed assets and intangibles 18 16 All other 27 32 Total deferred tax liabilities 167 166 Net deferred tax assets $ 27 $ 32 Consolidated Balance Sheet Classification: Other non-current assets $ 55 $ 59 Deferred tax liabilities non-current 28 27 Net deferred tax assets $ 27 $ 32 At December 31, 2020, the Company had available non-U.S. net operating loss carryforwards and capital loss carryforwards of $1.5 billion and $18 million, respectively, which have remaining carryforward periods ranging from 1 year to indefinite. The Company had available U.S. federal net operating loss carryforwards of $1.8 billion at December 31, 2020, which have remaining carryforward periods ranging from 7 years to indefinite. U.S. foreign tax credit carryforwards are $385 million at December 31, 2020. These credits will begin to expire in 2021. U.S. research tax credit carryforwards are $21 million at December 31, 2020. These credits will begin to expire in 2030. The Company had available tax-effected U.S. state operating loss carryforwards of $32 million at December 31, 2020, which will expire at various dates between 2021 and 2040. In connection with the Company's emergence from bankruptcy and resulting change in ownership on the Effective Date, an annual limitation was imposed on the utilization of U.S. net operating losses, U.S. credit carryforwards and certain U.S. built-in losses (collectively referred to as “tax attributes”) under Internal Revenue Code (“IRC”) Sections 382 and 383. The collective limitation is approximately $120 million per year on tax attributes in existence at the date of change in ownership. Additionally, the Company has approximately $385 million of U.S. foreign tax credits and approximately $18 million of U.S. federal net operating loss carryforwards that are not subject to any current limitation since they were realized after the Effective Date. Unrecognized Tax Benefits, Inclusive of Discontinued Operations The Company operates in multiple jurisdictions throughout the world and the income tax returns of its subsidiaries in various tax jurisdictions are subject to periodic examination by respective tax authorities. The Company regularly assesses the status of these examinations and the potential for adverse and/or favorable outcomes to determine the adequacy of its provision for income taxes. The Company believes that it has adequately provided for tax adjustments that it believes are more likely than not to be realized as a result of any ongoing or future examination. Accounting estimates associated with uncertain tax positions require the Company to make judgments regarding the sustainability of each uncertain tax position based on its technical merits. If the Company determines it is more likely than not a tax position will be sustained based on its technical merits, the Company records the largest amount that is greater than 50% likely of being realized upon ultimate settlement. These estimates are updated at each reporting date based on the facts, circumstances and information available. Due to the complexity of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the liabilities recorded. Gross unrecognized tax benefits at December 31, 2020 and 2019 were $14 million and $13 million, respectively. Of these amounts, approximately $7 million and $6 million, respectively, represent the amount of unrecognized benefits that, if recognized, would impact the effective tax rate. The gross unrecognized tax benefit differs from that which would impact the effective tax rate due to uncertain tax positions embedded in other deferred tax attributes carrying a full valuation allowance. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense and related amounts accrued at December 31, 2020 and 2019 was $2 million in both years. During 2020 and 2019, the Company recorded uncertain tax positions primarily related to certain transfer positions taken between affiliates in Europe and the U.S. During 2018, there were several items that impacted the Company’s unrecognized tax benefits resulting in a $10 million net reduction in income tax expense, inclusive of interest and penalties, of which $6 million and $4 million of income tax benefits were reflected in continuing operations and discontinued operations, respectively. The $6 million income tax benefit in continuing operations primarily reflects the favorable audit developments in connection with uncertain tax positions related to goodwill tax amortization at an affiliate in Asia. The $4 million income tax benefit in discontinued operations relates to expiring statutes in connection with former climate operations in Europe. With few exceptions, the Company is no longer subject to U.S. federal tax examinations for years before 2014, or state, local or non-U.S. income tax examinations for years before 2003, although U.S. net operating losses carried forward into open tax years technically remain open to adjustment. Although it is not possible to predict the timing of the resolution of all ongoing tax audits with accuracy, it is reasonably possible that certain tax proceedings in the U.S., Europe, Asia and Mexico could conclude within the next twelve months and result in a significant increase or decrease in the balance of gross unrecognized tax benefits. Given the number of years, jurisdictions and positions subject to examination, the Company is unable to estimate the full range of possible adjustments to the balance of unrecognized tax benefits. The long-term portion of uncertain income tax positions (including interest) in the amount of $6 million is included in Other non-current liabilities on the Consolidated Balance Sheet, while $3 million is reflected as a reduction of a deferred tax asset related to a net operating loss included in Other non-current assets on the Consolidated Balance Sheets . A reconciliation of the beginning and ending amount of unrecognized tax benefits including amounts attributable to discontinued operations is as follows: Year Ended December 31, (In millions) 2020 2019 Beginning balance $ 13 $ 10 Tax positions related to current period Additions — 3 Tax positions related to prior periods Additions 1 1 Reductions — (1) Ending balance $ 14 $ 13 During 2012, Brazil tax authorities issued tax assessment notices to Visteon Sistemas Automotivos (“Sistemas”) related to the sale of its chassis business to a third party, which required a deposit in the amount of $15 million during 2013 necessary to open a judicial proceeding against the government in order to suspend the debt and allow Sistemas to operate regularly before the tax authorities after attempts to reopen an appeal of the administrative decision failed. Adjusted for currency impacts and accrued interest, the deposit amount is approximately $11 million as of December 31, 2020. The Company believes that the risk of a negative outcome is remote once the matter is fully litigated at the highest judicial level. These appeal payments, as well as income tax refund claims associated with other jurisdictions, total $16 million as of December 31, 2020 and are included in Other non-current assets on the Consolidated Balance Sheets. |
Stockholders' Equity and Non-co
Stockholders' Equity and Non-controlling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity and Non-controlling Interests | Stockholders’ Equity and Non-controlling Interests Share Repurchase Program In January 2018 the Company's Board of Directors authorized a total of $700 million of share repurchases which expired on December 31, 2020. Share repurchases under this authorization include: • 2,805,531 shares of common stock in 2018 at an average price of $106.92 for an aggregate purchase amount of $300 million pursuant to various programs with third-party financial institutions. • 322,120 shares of common stock in 2019 at an average price of $62.06 for an aggregate purchase amount of $20 million pursuant to various programs with third-party financial institutions. • 233,769 shares of common stock in 2020 at an average price of $67.87 for an aggregate purchase amount of $16 million pursuant to various programs with third-party financial institutions. Treasury Stock As of December 31, 2020 and 2019, respectively, the Company held 27,156,537 and 27,044,003 shares of common stock in treasury which may be used for satisfying obligations under employee incentive compensation arrangements. The Company values shares of common stock held in treasury at cost. Non-Controlling Interests Non-controlling interests in the Visteon Corporation economic entity are as follows: December 31, (In millions) 2020 2019 Yanfeng Visteon Automotive Electronics Co., Ltd. $ 57 $ 56 Shanghai Visteon Automotive Electronics Co., Ltd. 44 41 Changchun Visteon FAWAY Automotive Electronics Co., Ltd. 20 17 Other 2 1 $ 123 $ 115 In 2019, the Company paid less than $1 million t o purchase the remaining shares of a previous non-controlling interest. Stock Warrants In October 2010, the Company issued ten-year warrants at an exercise price of $9.66 per share. Pursuant to the Ten-Year Warrant Agreement, the original exercise price of $9.66 for the ten-year warrants was subject to adjustment as a result of the special distribution of $43.40 per share to shareholders at the beginning of 2016. Remaining warrants of 909 expired unexercised as of December 31, 2020. Accumulated Other Comprehensive Income (Loss) Changes in AOCI and reclassifications out of AOCI by component includes: Year Ended December 31, (In millions) 2020 2019 Changes in AOCI: Beginning balance $ (267) $ (216) Other comprehensive income (loss) before reclassification, net of tax (44) (46) Amounts reclassified from AOCI 7 (5) Ending balance $ (304) $ (267) Changes in AOCI by component: Foreign currency translation adjustments Beginning balance $ (153) $ (142) Other comprehensive income (loss) before reclassification (a) 38 (11) Ending balance (115) (153) Net investment hedge Beginning balance 4 (5) Other comprehensive income (loss) before reclassification (a) (14) 15 Amounts reclassified from AOCI (b) (5) (6) Ending balance (15) 4 Benefit plans Beginning balance (114) (71) Other comprehensive loss before reclassification, net of tax (c) (59) (44) Amounts reclassified from AOCI 8 1 Ending balance (165) (114) Unrealized hedging gain (loss) Beginning balance (4) 2 Other comprehensive income (loss) before reclassification, net of tax (d) (9) (6) Amounts reclassified from AOCI 4 — Ending balance (9) (4) AOCI ending balance $ (304) $ (267) (a) There were no income tax effects for either period due to the valuation allowance. (b) Amounts are included in "Interest expense" within the Consolidated Statements of Operations. (c) Amount included in the computation of net periodic pension cost. (See Note 12, "Employee Benefit Plans" for additional details.) Net of tax expense of less than $1 million, and tax benefit of $5 million related to benefit plans for the years ended December 31, 2020 and 2019, respectively. (d) There were no income tax effects for the periods ended December 31, 2020 and 2019. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A summary of information used to compute basic and diluted earnings per share attributable to Visteon is as follows: Year Ended December 31, (In millions, except per share amounts) 2020 2019 2018 Numerator: Net income (loss) from continuing operations attributable to Visteon $ (56) $ 71 $ 163 Net income (loss) from discontinued operations attributable to Visteon — (1) 1 Net income (loss) attributable to Visteon $ (56) $ 70 $ 164 Denominator: Average common stock outstanding - basic 27.9 28.1 29.5 Dilutive effect of performance based share units and other — 0.1 0.2 Diluted shares 27.9 28.2 29.7 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon: Continuing operations $ (2.01) $ 2.53 $ 5.53 Discontinued operations — (0.04) 0.03 $ (2.01) $ 2.49 $ 5.56 Diluted earnings (loss) per share attributable to Visteon: Continuing operations $ (2.01) $ 2.52 $ 5.49 Discontinued operations — (0.04) 0.03 $ (2.01) $ 2.48 $ 5.52 Performance based share units of approximately 276,000 were excluded from the calculation of diluted loss per share because the effect of including them would have been anti-dilutive for the year ended December 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. • Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. • Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. • Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Assets which are valued at net asset value per share ("NAV"), or its equivalent, as a practical expedient are reported outside the fair value hierarchy, but are included in the total assets for reporting and reconciliation purposes. The fair value hierarchy for assets and liabilities measured at fair value on a recurring basis are as follows: December 31, 2020 (In millions) Level 1 Level 2 Level 3 NAV Total Asset Category: Retirement plan assets $ 114 $ 228 $ 18 $ 549 $ 909 Foreign currency instruments $ — $ 1 $ — $ — $ 1 Liability Category: Foreign currency instruments $ — $ 27 $ — $ — $ 27 Interest rate swaps $ — $ 11 $ — $ — $ 11 December 31, 2019 (In millions) Level 1 Level 2 Level 3 NAV Total Asset Category: Retirement plan assets $ 131 $ 353 $ 15 $ 363 $ 862 Liability Category: Foreign currency instruments $ — $ 6 $ — $ — $ 6 Interest rate swaps $ — $ 7 $ — $ — $ 7 Foreign currency instruments and interest rate swaps are valued using industry-standard models that consider various assumptions, including time value, volatility factors, current market, and contractual prices for the underlying and non-performance risk. 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. The carrying amounts of all other non-retirement plan financial instruments approximate their fair values due to their relatively short-term maturities. Retirement plan assets pertain to a diverse set of securities and investment vehicles held by the Company’s defined benefit pension plans. These assets possess varying fair value measurement attributes such that certain portions are categorized within each level of the fair value hierarchy as based upon the level of observability of the inputs utilized in the valuation of the particular asset. The Company may, as a practical expedient, estimate the fair value of certain investments using NAV of the investment as of the reporting date. This practical expedient generally deals with investments that permit an investor to redeem its investment directly with, or receive distributions from, the investee at times specified in the investee’s governing documents. Examples of these investments (often referred to as alternative investments) may include ownership interests in real assets, certain credit strategies, and hedging and diversifying strategies. They are commonly in the form of limited partnership interests. The Company uses NAV as a practical expedient when valuing investments in alternative asset classes and funds which are a limited partnership or similar investment vehicle. Retirement Plan Assets Retirement plan assets consist of the following: • Short-term investments, such as cash and cash equivalents, are immediately available or are highly liquid and not subject to significant market risk. Assets comprised of cash, short-term sovereign debt, or high credit-quality money market securities and instruments held directly by the plan are categorized as Level 1. Assets in a registered money market fund are reported as registered investment companies. Assets in a short-term investment fund ("STIF") are categorized as Level 2. Cash and cash equivalent assets denominated in currencies other than the U.S. dollar are reflected in U.S. dollar terms at the exchange rate prevailing at the balance sheet dates. • Registered investment companies are mutual funds that are registered with the Securities and Exchange Commission. Mutual funds may invest in various types of securities or combinations thereof including equities, fixed income securities, and other assets that are subject to varying levels of market risk and are categorized as Level 1. The share prices for mutual funds are published at the close of each business day. • Treasury and government securities consist of debt securities issued by the U.S. and non-U.S. sovereign governments and agencies, thereof. Assets with a high degree of liquidity and frequent trading activity are categorized as Level 1 while others are valued by independent valuation firms that employ standard methodologies associated with valuing fixed-income securities and are categorized as Level 2. • Corporate debt securities consist of fixed income securities issued by corporations. Assets with a high degree of liquidity and frequent trading activity are categorized as Level 1 while others are valued by independent valuation firms that employ standard methodologies associated with valuing fixed-income securities and are categorized as Level 2. • Common and preferred stocks consist of shares of equity securities. These are directly-held assets that are generally publicly traded in regulated markets that provide readily available market prices and are categorized as Level 1. • Common trust funds are comprised of shares or units in commingled funds that are not publicly traded. The underlying assets in these funds, including equities and fixed income securities, are generally publicly traded in regulated markets that provide readily available market prices. The entire balance of an investment in a common trust fund that does not have a readily observable market prices as available on a third-party information source, notwithstanding whether the investment has daily liquidity, is categorized as Level 2; unless the investment fund has investment holdings significant to its valuation that are considered as Level 3; or the fund is considered as an alternative strategy (including hedge and diversifying strategies) for which valuation is established by NAV as a practical expedient. • Liability Driven Investing (“LDI”) is an investment strategy that utilizes certain instruments and securities, interest-rate swaps and other financial derivative instruments intended to hedge a portion of the changes in pension liabilities associated with changes in the actuarial discount rate as applied to the plan’s liabilities. The instruments and securities used typically include total return swaps and other financial derivative instruments. The valuation methodology of the financial derivative instruments contained in this category of assets utilizes standard pricing models associated with fixed income derivative instruments and are categorized as Level 2. • Other investments include miscellaneous assets and liabilities and are primarily comprised of pending transactions and collateral settlements and are categorized as Level 2. • Limited partnerships and hedge funds represent investment vehicles with underlying exposures in alternative credit, hedge and diversifying strategies (including hedge fund of funds), real assets, and certain equity exposures. The underlying assets in these funds may include securities transacted in active markets as well as other assets that have values less readily observable and may require valuation techniques that require inputs that are not readily observable. Investment in these funds may be subject to a specific notice period prior to the intended transaction date. In addition, transactions in these funds may require longer settlement terms than traditional mutual funds. These assets are valued based on their respective NAV as a practical expedient to estimate fair value due to the absence of readily available market prices. • Insurance contracts are reported at cash surrender value and have significant unobservable inputs and are categorized as Level 3. The fair values of the Company’s U.S. retirement plan assets are as follows: (In millions) December 31, 2020 Asset Category Level 1 Level 2 NAV Total Registered investment companies $ 4 $ — $ — $ 4 Common trust funds — — 436 436 LDI — 100 — 100 Limited partnerships and hedge funds — — 84 84 Cash and cash equivalents 1 34 — 35 Total $ 5 $ 134 $ 520 $ 659 (In millions) December 31, 2019 Asset Category Level 1 Level 2 NAV Total Registered investment companies $ 3 $ — $ — $ 3 Common and preferred stock 27 — — 27 Common trust funds — 152 123 275 LDI — 111 — 111 Limited partnerships and hedge funds — — 206 206 Cash and cash equivalents 1 7 — 8 Total $ 31 $ 270 $ 329 $ 630 The fair values of the Company’s Non-U.S. retirement plan assets are as follows: (In millions) December 31, 2020 Asset Category Level 1 Level 2 Level 3 NAV Total Registered investment companies $ 10 $ 68 $ — $ — $ 78 Treasury and government securities 91 13 — — 104 Cash and cash equivalents 6 — — — 6 Corporate debt securities — 6 — — 6 Common and preferred stock 2 — — — 2 Common trust funds — 11 — 14 25 Limited partnerships — 1 1 15 17 Insurance contracts — — 17 — 17 Derivative instruments — (5) — — (5) Total $ 109 $ 94 $ 18 $ 29 $ 250 (In millions) December 31, 2019 Asset Category Level 1 Level 2 Level 3 NAV Total Registered investment companies $ 59 $ 24 $ — $ — $ 83 Treasury and government securities 34 18 — — 52 Cash and cash equivalents 4 1 — — 5 Corporate debt securities — 8 — — 8 Common and preferred stock 3 — — — 3 Common trust funds — 35 — 18 53 Limited partnerships — — — 16 16 Insurance contracts — — 15 — 15 Derivative instruments — (3) — — (3) Total $ 100 $ 83 $ 15 $ 34 $ 232 The change in fair value of insurance contracts which used significant unobservable inputs was primarily due to purchases during the years ended December 31, 2020 and 2019. Items Measured at Fair Value on a Non-recurring Basis The Company measures certain assets and liabilities at fair value on a non-recurring basis, which are not included in the table above. As these non-recurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. As further described in Note 7, "Property and Equipment", the fair value of certain fixed assets was less than carrying value and therefore, impairment charges of $2 million were recorded in the year ended December 31, 2019. No such impairment charges were recorded for the year ended December 31, 2020. Fair Value of Debt |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments The Company is exposed to various market risks including, but not limited to, changes in foreign currency exchange rates and market interest rates. The Company manages these risks, in part, through the use of derivative financial instruments. The maximum length of time over which the Company hedges the variability in the future cash flows for forecast transactions, excluding those forecast transactions related to the payment of variable interest on existing debt, is eighteen months from the date of the forecast transaction. The maximum length of time over which the Company hedges forecast transactions related to the payment of variable interest on existing debt is the term of the underlying debt. The use of derivative financial instruments creates exposure to credit loss in the event of nonperformance by the counter-party to the derivative financial instruments. The Company limits this exposure by entering into agreements including master netting arrangements directly with a variety of major financial institutions with high credit standards that are expected to fully satisfy their obligations under the contracts. Additionally, the Company’s ability to utilize derivatives to manage risks is dependent on credit and market conditions. The Company presents its derivative positions and any related material collateral under master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. Derivative financial instruments designated and non-designated as hedging instruments are included in the Company’s Consolidated Balance Sheets at fair value. The Company is not required to maintain cash collateral with its counterparties in relation to derivative transactions. Accounting for Derivative Financial Instruments Derivative financial instruments are measured at fair value on a recurring basis under an income approach using industry-standard models that consider various assumptions, including time value, volatility factors, current market and contractual prices for the underlying and non-performance risk. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument or may derived from observable data. Accordingly, the Company's currency instruments are classified as Level 2, "Other Observable Inputs" in the fair value hierarchy. For a designated cash flow hedge, the effective portion of the change in the fair value of the derivative instrument is recorded in AOCI in the Consolidated Balance Sheets. When the underlying hedged transaction is realized, the gain or loss previously included in AOCI is recorded in earnings and reflected in the Consolidated Statements of Operations on the same line as the gain or loss on the hedged item attributable to the hedged risk. The gain or loss associated with changes in the fair value of undesignated cash flow hedges are recorded immediately in the Consolidated Statements of Operations, on the same line as the associated risk. For a designated net investment hedge, the effective portion of the change in the fair value of the derivative instrument is recorded as a cumulative translation adjustment in AOCI in the Consolidated Balance Sheets. Derivatives not designated as a hedge are adjusted to fair value through operating results. Cash flows associated with designated hedges are reported in the same category as the underlying hedged item. Cash flows associated with derivatives are reported in net cash provided from operating activities in the Company’s Consolidated Statements of Cash Flows except for cash flows associated with net investment hedges, which are reported in net cash used by investing activities. The Company presents its derivative positions and any related material collateral under master netting arrangements that provide for the net settlement of contracts, by counterparty, in the event of default or termination. Derivative financial instruments are included in the Company’s Consolidated Balance Sheets. There is no cash collateral on any of these derivatives. Foreign Currency Exchange Rate Risk The Company is exposed to various market risks including, but not limited to, changes in currency exchange rates arising from the sale of products in countries other than the manufacturing source, foreign currency denominated supplier payments, debt, dividends and investments in subsidiaries. The Company manages these risks, in part, through the use of derivative financial instruments. The maximum length of time over which the Company hedges the variability in the future cash flows related to transactions, excluding those transactions as related to the payment of variable interest on existing debt, is eighteen months. The maximum length of time over which the Company hedges forecasted transactions related to variable interest payments is the term of the underlying debt. Currency Exchange Rate Instruments: The Company primarily uses forward contracts denominated in euro, Japanese yen, Thai baht and Mexican peso intended to mitigate the variability of cash flows denominated in currency other than the hedging entity's functional currency. As of December 31, 2020 and 2019, the Company had foreign currency hedge economic derivative instruments, with notional amounts of approximately $18 million and $8 million, respectively. The aggregate fair value of these derivatives is an asset of $1 million and a liability of less than $1 million as of December 31, 2020 and 2019, respectively. The difference between the gross and net value of these derivatives after offset by counter party is not material. Cross Currency Swaps: The Company has executed cross-currency swap transactions intended to mitigate the variability of the U.S. dollar value of its investment in certain of its non-U.S. entities. These transactions are designated as net investment hedges and the Company has elected to assess hedge effectiveness under the spot method. Accordingly, periodic changes in the fair value of the derivative instruments attributable to factor other than spot exchange rate variability are excluded from the measure of hedge ineffectiveness and reported directly in earnings each reporting period. As of December 31, 2020 and 2019, the Company had cross currency swaps with an aggregate notional value of $250 million. The aggregate fair value of these derivatives is a non-current liability of $27 million and $6 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020, a gain of approximately $5 million is expected to be reclassified out of accumulated other comprehensive income into earnings within the next 12 months . Interest Rate Risk The Company utilizes interest rate swap instruments to manage its exposure and to mitigate the impact of interest rate variability. The instruments are designated as cash flow hedges, accordingly, the effective portion of the periodic changes in fair value is recognized in accumulated other comprehensive income, a component of shareholders' equity. Subsequently, the accumulated gains and losses recorded in equity are reclassified to income in the period during which the hedged cash flow impacts earnings. As of December 31, 2020 and 2019, the Company had interest rate swaps with an aggregate notional value of $300 million and $250 million, respectively. The aggregate fair value of these derivative transactions is a non-current liability of approxima tely $11 million and $7 million, as of December 31, 2020 and 2019, respectively. As of December 31, 2020, a loss of approximat ely $6 million is expected to be reclassified out of accumulated other comprehensive income into earnings within the next 12 months. Financial Statement Presentation Gains and losses on derivative financial instruments for the years ended December 31, 2020 and 2019 are as follows: Amount of Gain (Loss) Recorded Income (Loss) in AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in Income (Loss) (In millions) 2020 2019 2020 2019 2020 2019 Foreign currency risk – Sales: Non-designated cash flow hedges $ — $ — $ — $ — $ — $ 1 Foreign currency risk – Cost of sales: Non-designated cash flow hedges — — — — — (1) Interest rate risk - Interest expense, net: Net investment hedges (14) 15 5 6 — — Interest rate swap (9) (6) (4) — — — $ (23) $ 9 $ 1 $ 6 $ — $ — Concentrations of Credit Risk Financial instruments including cash equivalents, derivative contracts, and accounts receivable, expose the Company to counter-party credit risk for non-performance. The Company’s counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company’s requirement of high credit standing. The Company’s counterparties for derivative contracts are substantially investment and commercial banks with significant experience using such derivatives. The Company manages its credit risk through policies requiring minimum credit standing and limiting credit exposure to any one counter-party and through monitoring counter-party credit risks. The Company’s concentration of credit risk related to derivative contracts as of December 31, 2020 and 2019 is not material. The following is a summary of the percentage of net sales and accounts receivable from the Company's largest ultimate customers: Percentage of Total Net Sales Percentage of Total Accounts Receivable December 31, December 31, 2020 December 31, 2019 2020 2019 2018 Ford 22 % 22 % 26 % 13 % 12 % Mazda 11 % 14 % 18 % 8 % 5 % Renault/Nissan 11 % 13 % 12 % 11 % 13 % BMW 11 % 8 % 3 % 8 % 6 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Claims In 2003, the Local Development Finance Authority of the Charter Township of Van Buren, Michigan issued approximately $28 million in bonds finally maturing in 2032, the proceeds of which were used at least in part to assist in the development of the Company’s U.S. headquarters located in the Township. During January 2010, the Company and the Township entered into a settlement agreement (the “Settlement Agreement”) that, among other things, reduced the taxable value of the headquarters property to current market value. The Settlement Agreement also provided that the Company would negotiate in good faith with the Township in the event that property tax payments were inadequate to permit the Township to meet its payment obligations with respect to the bonds. In October 2019, the Township notified the Company that the Township had incurred a shortfall under the bonds of less than $1 million and requested that the Company meet to discuss payment. The parties met in November 2019 but no agreement was reached. On December 9, 2019, the Township commenced litigation against the Company in Michigan’s Wayne County Circuit Court claiming damages of $28 million related to what the Township alleges to be the current shortfall and projected future shortfalls under the bonds. The Company disputes the factual and legal assertions made by the Township and will defend the matter vigorously. The Company is not able to estimate the possible loss or range of loss in connection with this matter. The dispute between the Company and its former President and Chief Executive Officer, Timothy D. Leuliette, was resolved in the first quarter of 2018. Pursuant to the resolution, the Company recognized $17 million of pre-tax income, representing the forfeiture of stock based awards and release of other liabilities accrued during prior periods. The benefit is classified as a reduction to selling, general and administrative expenses of $10 million, a benefit to Other income, net of $4 million, and a benefit to income (loss) from discontinued operations, net of tax of $3 million in the in the Consolidated Statements of Operations for the year ended December 31, 2018. In November 2013, the Company and Halla Visteon Climate Corporat ion ("HVCC"), jointly filed an Initial Notice of Voluntary Self-Disclosure statement with the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) regarding certain sales of automotive HVAC components by a minority-owned, Chinese joint venture of HVCC into Iran. The Company updated that notice in December 2013, and subsequently filed a voluntary self-disclosure regarding these sales with OFAC in March 2014. In May 2014, the Company voluntarily filed a supplementary self-disclosure identifying additional sales of automotive HVAC components by the Chinese joint venture, as well as similar sales involving an HVCC subsidiary in China, totaling approximately $12 million, and filed a final voluntary-self disclosure with OFAC on October 17, 2014. OFAC is currently reviewing the results of the Company’s investigation. Following that review, OFAC may conclude that the disclosed sales resulted in violations of U.S. economic sanctions laws and warrant the imposition of civil penalties, such as fines, limitations on the Company's ability to export products from the United States, and/or referral for further investigation by the U.S. Department of Justice. Any such fines or restrictions may be material to the Company’s financial results in the period in which they are imposed, but is not able to estimate the possible loss or range of loss in connection with this matter. Additionally, disclosure of this conduct and any fines or other action relating to this conduct could harm the Company’s reputation and have a material adverse effect on our business, operating results and financial condition. The Company cannot predict when OFAC will conclude its own review of our voluntary self-disclosures or whether it may impose any of the potential penalties described above. The Company's operations in Brazil are subject to highly complex labor, tax, customs and other laws. While the Company believes that it is in compliance with such laws, it is periodically engaged in litigation regarding the application of these laws. As of December 31, 2020, the Company maintained accruals of approximately $9 million for claims aggregating approximately $57 million in Brazil. The amounts accrued represent claims that are deemed probable of loss and are reasonably estimable based on the Company's assessment of the claims and prior experience with similar matters. While the Company believes its accruals for litigation and claims are adequate, the final amounts required to resolve such matters could differ materially from recorded estimates and the Company's results of operations and cash flows could be materially affected. Product Warranty and Recall Amounts accrued for product warranty and recall provisions are based on management’s best estimates of the amounts that will ultimately be required to settle such items. The Company’s estimates for product warranty and recall obligations are developed with support from its sales, engineering, quality and legal functions and include due consideration of contractual arrangements, past experience, current claims and related information, production changes, industry and regulatory developments and various other considerations. These estimates do not include amounts which may ultimately be recovered from the Company's suppliers. The Company can provide no assurances that it will not experience material obligations in the future or that it will not incur significant costs to defend or settle such obligations beyond the amounts accrued or beyond what the Company may recover from its suppliers. The following table provides a reconciliation of changes in the product warranty and recall liability: Year Ended December 31, (In millions) 2020 2019 Beginning balance $ 49 $ 48 Provisions 38 26 Change in estimates (7) (2) Currency/other 3 (1) Settlements (19) (22) Ending balance $ 64 $ 49 Guarantees and Commitments During 2014, as part of the YFVIC Transaction, the Company guaranteed certain standard non-payment provisions to cover the lenders in event of non-payment of principal, accrued interest, and other fees due. The loan was fully paid by the borrower and the guarantee concurrently relieved during the year ended December 31, 2019. As part of the agreements of the Climate Transaction and Interiors Divestiture, the Company continues to provide lease guarantees to divested Climate and Interiors entities. As of December 31, 2020, the Company has approximately $5 million and $1 million of outstanding guarantees, related to the divested Climate and Interiors entities, respectively. The guarantees represent the maximum potential amount that the Company could be required to pay under the guarantees in the event of default by the guaranteed parties. These guarantees will generally cease upon expiration of current lease agreement which expire in 2026 and 2024 for the Climate and Interiors entities, respectively. Other Contingent Matters Various legal actions, governmental investigations and proceedings and claims are pending or may be instituted or asserted in the future against the Company, including those arising out of alleged defects in the Company’s products; governmental regulations relating to safety; employment-related matters; customer, supplier and other contractual relationships; intellectual property rights; product warranties; product recalls; and environmental matters. Some of the foregoing matters may involve compensatory, punitive or antitrust or other treble damage claims in very large amounts, or demands for recall campaigns, environmental remediation programs, sanctions, or other relief which, if granted, would require very large expenditures. The Company enters into agreements that contain indemnification provisions in the normal course of business for which the risks are considered nominal and impracticable to estimate. Contingencies are subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. Reserves have been established by the Company for matters discussed in the immediately foregoing paragraph where losses are deemed probable and reasonably estimable. It is possible, however, that some of the matters discussed in the foregoing paragraph could be decided unfavorably to the Company and could require the Company to pay damages or make other expenditures in amounts, or a range of amounts, that cannot be estimated as of December 31, 2020 and that are in excess of established reserves. The Company does not reasonably expect, except as otherwise described herein, based on its analysis, that any adverse outcome from such matters would have a material effect on the Company’s financial condition, results of operations or cash flows, although such an outcome is possible. |
Segment Information and Revenue
Segment Information and Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information and Revenue Recognition | Segment Information and Revenue Recognition The Company’s current reportable segment is Electronics. The Company's Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment systems, audio systems, telematics solutions, battery monitoring system and head-up displays. As the Company has one reportable segment, total assets, depreciation, amortization and capital expenditures are equal to consolidated results. Financial results for the Company's reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker, the Chief Executive Officer, evaluates the performance of the Company’s segment primarily based on net sales, before elimination of inter-company shipments, Adjusted EBITDA (a non-U.S. GAAP financial measure, as defined below) and operating assets. The accounting policies for the reportable segments are the same as those described in the Note 1, "Summary of Significant Accounting Policies” to the Company’s consolidated financial statements. Segment Net sales Segment Net sales were $2,548 million, $2,945 million and $2,984 million for the years ended December 31, 2020, 2019 and 2018. Segment Adjusted EBITDA The Company defines Adjusted EBITDA as net income attributable to the Company adjusted to eliminate the impact of depreciation and amortization, restructuring expense, net interest expense, equity in net income of non-consolidated affiliates, loss on divestiture, provision for income taxes, discontinued operations, net income attributable to non-controlling interests, non-cash stock-based compensation expense, and other gains and losses not reflective of the Company's ongoing operations. Adjusted EBITDA is presented as a supplemental measure of the Company's financial performance that management believes is useful to investors because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company's operating activities across reporting periods. Not all companies use identical calculations and, accordingly, the Company's presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA is not a recognized term under U.S. GAAP and does not purport to be a substitute for net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and is not intended to be a measure of cash flow available for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. In addition, the Company uses Adjusted EBITDA (i) as a factor in incentive compensation decisions, (ii) to evaluate the effectiveness of the Company's business strategies and (iii) the Company's credit agreements use measures similar to Adjusted EBITDA to measure compliance with certain covenants. Segment Adjusted EBITDA was $192 million, $234 million and $330 million for the years ended December 31, 2020, 2019 and 2018. The reconciliation of Adjusted EBITDA to net income attributable to Visteon for the years ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, (In millions) 2020 2019 2018 Net income (loss) attributable to Visteon Corporation $ (56) $ 70 $ 164 Depreciation and amortization 104 100 91 Restructuring expense, net 76 4 29 Provision for income taxes 28 24 43 Non-cash, stock-based compensation expense 18 17 8 Interest expense, net 11 9 7 Net income attributable to non-controlling interests 8 11 10 Net (income) loss from discontinued operations, net of tax — 1 (1) Equity in net income of non-consolidated affiliates (6) (6) (13) Other, net 9 4 (8) Adjusted EBITDA $ 192 $ 234 $ 330 Financial Information by Geographic Region Financial information about net sales and net tangible long-lived assets by country are as follows: Net Sales (a) Tangible Long-Lived Assets, Net (b) Year Ended December 31, December 31, (In millions) 2020 2019 2018 2020 2019 United States $ 536 $ 663 $ 654 $ 122 $ 81 Mexico 29 38 67 50 105 Total North America 565 701 721 172 186 Portugal 635 602 563 110 97 Slovakia 251 237 235 51 45 Tunisia 41 71 96 12 10 Other Europe 40 68 87 59 55 Total Europe 967 978 981 232 207 China Domestic 479 527 405 China Export 196 262 309 Total China 675 789 714 85 93 Japan 244 393 494 31 23 India 93 110 114 51 50 Other Asia-Pacific 41 57 70 12 13 Total Other Asia-Pacific 378 560 678 94 86 South America 71 91 79 25 29 Inter-region eliminations (108) (174) (189) $ 2,548 $ 2,945 $ 2,984 $ 608 $ 601 (a) Company sales based on geographic region where sale originates and not where customer is located. (b) Tangible long-lived assets include property, plant and equipment and right-of-use assets. Disaggregated revenue by product lines is as follows: Year Ended December 31, (In millions) 2020 2019 Product Lines Instrument clusters $ 1,323 $ 1,314 Audio and infotainment 478 721 Information displays 422 486 Body and security 99 117 Telematics 57 76 Climate controls 49 72 Other 120 159 $ 2,548 $ 2,945 |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Year Ended December 31, (In millions) 2020 2019 2018 Pension financing benefits, net $ 14 $ 10 $ 13 Pension settlement charge (5) — — Transformation initiatives — — 4 Gain on non-consolidated transactions, net — — 4 $ 9 $ 10 $ 21 Pension financing benefits, net include return on assets net of interest costs and other amortization. During 2020 the Company transferred a portion of the benefit obligation related to its defined benefit U.S. pension plan a third-party issuer. The transaction met the criteria for settlement accounting, and accordingly, the Company recognized a $5 million pension settlement charge. During 2018, the Company recognized a $4 million benefit on settlement of litigation matters with the Company’s former President and Chief Executive Officer as further described in Note 19, "Commitments and Contingencies." On September 1, 2018, the Company invested approximately $300,000 and acquired an additional 1% ownership in Changchun Visteon FAWAY Auto Electronics Co., Ltd, ("VFAE"), a Chinese automotive electronic applications manufacturer in which the Company had previously been an equity investor. The Company's ownership interest increased to 51% and, because of the change in control, the assets and liabilities of VFAE were consolidated from the date of the transaction. |
SCHEDULE II _ VALUATION AND QUA
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In millions) Balance at (Benefits)/ Deductions(a) Other( b) Balance Year Ended December 31, 2020: Allowance for doubtful accounts $ 10 $ (2) $ (4) $ — $ 4 Valuation allowance for deferred taxes 1,132 46 — 85 1,263 Year Ended December 31, 2019: Allowance for doubtful accounts $ 6 $ 5 $ (1) $ — $ 10 Valuation allowance for deferred taxes 1,144 (10) — (2) 1,132 Year Ended December 31, 2018: Allowance for doubtful accounts $ 8 $ 2 $ (4) $ — $ 6 Valuation allowance for deferred taxes 1,242 (81) — (17) 1,144 ____________ (a) Deductions represent uncollectible accounts charged off. (b) Deferred taxes valuation allowance - represents adjustments recorded through other comprehensive income, exchange, expiration of tax attribute carryforwards, and various tax return true-up adjustments, all of which impact deferred taxes and the related valuation allowances. In 2020, the $85 million other increase in the valuation allowance for deferred taxes is comprised of $49 million related to valuation allowance benefits allocated to discontinued operations associated with electing to deduct expiring foreign tax credits previously derecognized for which a valuation allowance is maintained; $20 million related to exchange; and $16 million primarily related to other comprehensive income. In 2019, the $2 million overall decrease in the valuation allowance for deferred taxes is comprised of $7 million related to exchange, partially offset by $5 million related to other comprehensive income. In 2018, the $17 million overall decrease in the valuation allowance for deferred taxes is comprised of $18 million related to exchange, partially offset by $1 million related to other comprehensive income. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: Visteon Corporation (the "Company" or "Visteon") financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") on a going concern basis, which contemplates the continuity of operations, realization of assets and satisfaction of liabilities in the normal course of business. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. Investments in affiliates over which the Company does not exercise control, but does have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. All other investments are measured at cost, less impairment, with changes in fair value recognized in net income. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported herein. Considerable judgment is involved in making these determinations and the use of different estimates or assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results could differ from those reported herein. Events and changes in circumstances arising after December 31, 2020, including those resulting from the impacts of COVID-19 and related subsequent semiconductor supply shortage, as described below, will be reflected in management's estimates for future periods. |
Revenue Recognition | Revenue Recognition: The Company generates revenue from the production of automotive vehicle cockpit electronics parts sold to Original Equipment Manufacturers ("OEMs") , or Tier 1 suppliers at the direction of the OEM, under long-term supply agreements supporting new vehicle production. Such agreements may also require related production for service parts subsequent to initial vehicle production periods. The Company’s contracts with customers involve various governing documents (sourcing agreements, master purchase agreements, terms and conditions agreements, etc.) which do not reach the level of a performance obligation of the Company until the Company receives either a purchase order and/or a customer release for a specific number of parts at a specified price, at which point the collective group of documents represent an enforceable contract. While the long-term supply agreements generally range from three to five years, customers make no commitments to volumes, and pricing or specifications can change prior to or during production. The Company recognizes revenue when control of the parts produced are transferred to the customer according to the terms of the contract, which is usually when the parts are shipped or delivered to the customer’s premises. Customers are generally invoiced upon shipment or delivery and payment generally occurs within 45 to 90 days and do not include significant financing components. Customers in China are often invoiced one month after shipment or delivery. Customer returns, when they occur, relate to quality rework issues and are not connected to any repurchase obligation of the Company. As of December 31, 2020, all unfulfilled performance obligations are expected to be fulfilled within the next twelve months. Revenue is measured based on the transaction price and the quantity of parts specified in a contract with a customer. Discrete price adjustments may occur during the vehicle production period in order for the Company to remain competitive with market prices or based on changes in product specifications. Some of these price adjustments are non-routine in nature and require estimation. In the event the Company concludes that a portion of the revenue for a given part may vary from the purchase order, the Company records revenue at the most likely amount to which the Company expects to be entitled based on historical experience and input from customer negotiations. The Company records such estimates within Net sales and Accounts receivable, net, within the Consolidated Statements of Operations and Consolidated Balance Sheets, respectively. The Company adjusts its pricing reserves at the earlier of when the most likely amount of consideration changes or when the consideration becomes fixed. In 2020, revenue recognized related to performance obligations satisfied in previous periods represented less than 1% of consolidated sales. The Company has no material contracts assets, contract liabilities or capitalized contract acquisition costs as of December 31, 2020. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Shipping and handling costs associated with outbound freight after control of the parts has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. |
Foreign Currency | Foreign Currency: Assets and liabilities for most of the Company’s non-U.S. businesses are translated into U.S. dollars at end-of-period exchange rates. Income and expense accounts of the Company’s non-U.S. businesses are translated into U.S. dollars at average-period exchange rates. The related translation adjustments are recorded in accumulated other comprehensive income (loss) ("AOCI") in the Consolidated Balance Sheets. |
Restructuring Expenses | Restructuring Expense: Restructuring expense includes costs directly associated with exit or disposal activities. Such costs include employee severance and termination benefits, special termination benefits, contract termination fees and penalties, and other exit or disposal costs. In general, the Company records involuntary employee-related exit and disposal costs when there is a substantive plan for employee severance and related costs are probable and estimable. For one-time termination benefits (i.e., no substantive plan) and employee retention costs, expense is recorded when the employees are entitled to receive such benefits and the amount can be reasonably estimated. Contract termination fees and penalties and other exit and disposal costs are generally recorded when incurred. |
Debt Issuance Costs | Debt Issuance Costs: The costs related to issuance or modification of long-term debt are deferred and amortized into interest expense over the life of each respective debt issue. Deferred amounts associated with debt extinguished prior to maturity are expensed upon extinguishment. |
Other Costs within Cost of Sales | Other Costs within Cost of Sales: Repair and maintenance costs, pre-production costs, and research and development expenses are expensed as incurred. Pre-production costs expensed represent engineering and development costs that are not contractually guaranteed for reimbursement by the customer. Research and development expenses include salary and related employee benefits, contractor fees, information technology, occupancy, telecommunications, depreciation, forward model program development, and advanced engineering activities. Research and development expenses were $201 million, $300 million, and $286 million in 2020, 2019 and 2018, respectively, which includes recoveries from customers of $134 million, $140 million and $146 million. Shipping and handling costs are recorded in the Company's Consolidated Statements of Operations as "Cost of sales." |
Net Earnings (Loss) Per Share Attributable to Visteon | Net Earnings (Loss) Per Share Attributable to Visteon: Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to Visteon by the average number of shares of common stock outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) attributable to Visteon by the average number of common and potential dilutive common shares outstanding after deducting undistributed income allocated to participating securities. Performance based share units are considered contingently issuable shares and are included in the computation of diluted earnings per share if their conditions have been satisfied as if the reporting date was the end of the contingency period. |
Cash and Equivalents | Cash and Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or less, including short-term time deposits, commercial paper, repurchase agreements and money market funds to be cash equivalents. As of December 31, 2020 the Company's cash balances are invested in a diversified portfolio of cash and highly liquid cash equivalents including money market funds, commercial paper rated A2/P2 and above with maturity under three months, time deposits and other short-term cash investments, which mature under three months with highly rated banking institutions. The cost of such funds approximates fair value based on the nature of the investment. |
Restricted Cash | Restricted Cash: Restricted cash represents amounts designated for uses other than current operations and includes $3 million related to a Letter of Credit Facility, and $1 million related to cash collateral for other corporate purposes as of December 31, 2020. As of December 31, 2019, restricted cash includes $2 million related to a Letter of Credit Facility and $1 million related to cash collateral for other corporate purposes. |
Accounts Receivable | Accounts Receivable: Accounts receivable are stated at the invoiced amount, less an allowance for doubtful accounts for estimated amounts not expected to be collected, and do not bear interest. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: The Com pany establishes an allowance for doubtful accounts for accounts receivable based on the current expected credit loss impairment model (“CECL”). The Company elected to apply a historical loss rate based on historic write-offs by region to aging categories. The historical loss rate will be adjusted for current conditions and reasonable and supportable forecasts of future losses, as necessary. The Company may also record a specific reserve |
Inventories | Inventories: Inventories are stated at the lower of cost, determined on a first-in, first-out (“FIFO”) basis, or net realizable value. Cost includes the cost of materials, direct labor, in-bound freight and the applicable share of manufacturing overhead. The cost of inventories is reduced for excess and obsolete inventories based on management’s review of on-hand inventories compared to historical and estimated future sales and usage. |
Product Tooling | Product Tooling: Product tooling includes molds, dies and other tools used in production of a specific part or parts of the same basic design owned either by the Company or its customers. Company owned tooling is capitalized and depreciated over the shorter of the expected useful life of the assets or the term of the supply arrangement, generally not exceeding six years. |
Contractually Reimbursable Engineering Costs | Contractually Reimbursable Engineering Costs: Engineering, testing, and other costs incurred in the design and development of production parts are expensed as incurred, unless the cost reimbursement is contractually guaranteed in a customer contract, in which case costs are capitalized as incurred and subsequently reduced upon lump sum or piece price recoveries. |
Property and Equipment | Property and Equipment: Property and equipment is stated at cost or fair value for impaired assets. Property and equipment is depreciated principally using the straight-line method of depreciation over the related asset's estimated useful life. Generally, buildings and improvements are depreciated over a 40-year estimated useful life, leasehold improvements are depreciated on a straight-line basis over the initial lease term period, and machinery, equipment and other are depreciated over estimated useful lives ranging from 3 to 15 years. Certain costs incurred in the acquisition or development of software for internal use are capitalized. Capitalized software costs are amortized using the straight-line method over estimated useful lives generally ranging from 3 to 5 years. |
Leases | Leases: The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company estimates the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements containing lease and non-lease components which are accounted for as a single lease component. |
Goodwill | Goodwill: The Company performs either a qualitative or quantitative assessment of goodwill for impairment on an annual basis. Goodwill impairment testing is performed at the reporting unit level. The qualitative assessment considers several factors at the reporting unit level including the excess of fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market and industry metrics, actual performance compared to forecast performance, and the Company's current outlook on the business. If the qualitative assessment indicates it is more likely than not that goodwill is impaired, the reporting unit is quantitatively tested for impairment. To quantitatively test goodwill for impairment, the fair value of each reporting unit is determined and compared to the carrying value. An impairment charge is recognized for the amount by which the reporting unit's carrying value exceeds its fair value. |
Intangible Assets | Intangible Assets: Definite-lived intangible assets are amortized over their estimated useful lives, and tested for impairment in accordance with the methodology discussed above under "Property and Equipment." Definite-lived intangible assets include: • Developed technology intangible assets which are amortized over average, estimated useful lives generally ranging from 6 to 12 years; • Customer-related intangible assets which are amortized over average, estimated useful lives generally ranging from 7 to 12 years; • Software development costs which are capitalized after the software product development reaches technological feasibility and until the software product becomes releasable to customers. These intangible assets are amortized using the straight-line method over estimated useful lives generally ranging from 3 to 5 years; and |
Product Warranty and Recall | Product Warranty and Recall: Amounts accrued for product warranty and recall claims are based on management’s best estimates of the amounts that will ultimately be required to settle such items. The Company’s estimates for product warranty and recall obligations are developed with support from its sales, engineering, quality and legal functions and include due consideration of contractual arrangements, past experience, current claims and related information, production changes, industry and regulatory developments and various other considerations. |
Income Taxes and Value Added Taxes | Income Taxes: Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets when it is more likely than not that such assets will not be realized. This assessment requires judgment, and must be done on a jurisdiction-by-jurisdiction basis. In determining the need for a valuation allowance, all available positive and negative evidence, including historical and projected financial performance, is considered along with any other pertinent information. Value Added Taxes: The Company reports value added taxes collected from customers and remitted to government authorities, on a net basis within Cost of sales. |
Fair Value Measurements | Fair Value Measurements: The Company uses fair value measurements in the preparation of its financial statements, which utilize various inputs including those that can be readily observable, corroborated or are generally unobservable. The Company utilizes market-based data and valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Additionally, the Company applies assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. |
Financial Instruments | Financial Instruments: The Company uses derivative financial instruments, including forward contracts, swaps, and options to manage exposures to changes in currency exchange rates and interest rates. The Company's policy specifically prohibits the use of derivatives for speculative or trading purposes. |
Business Combinations | Business Combinations: In accounting for business combinations, the purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. Determining the fair values of assets acquired and liabilities assumed requires management's judgment, the utilization of independent appraisal firms and often involves the use of estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements Credit Losses - The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, "Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments", effective for fiscal years beginning after December 15, 2019. The guidance requires financial assets (or a group of financial assets) measured on the basis of amortized cost to be presented at the net amount expected to be collected. The guidance also requires that the statement of operations reflect the measurement of credit losses for newly recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. Additionally, the guidance limits the credit loss to the amount by which fair value is below amortized cost. The Company adopted the guidance effective January 1, 2020. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. Income Taxes - The FASB issued ASU 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." The new guidance simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted in interim or annual periods with any adjustments reflected as of the beginning of the annual period that includes that interim period. Additionally, entities that elect early adoption must adopt all the amendments in the same period. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company adopted the guidance effective January 1, 2020. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. Retirement Benefits - In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The guidance (i) removes disclosures that are no longer considered cost beneficial, (ii) clarifies the specific requirements of disclosures and (iii) adds disclosure requirements including reasons for significant gains and losses related to changes in the benefit obligation. The amendments in this ASU are effective for fiscal years ending after December 15, 2020 and interim periods within those fiscal years. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting ." The guidance provides optional expedients and exceptions related to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. The guidance was effective upon issuance and generally can be applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Allowance for doubtful accounts receivable | The allowance for doubtful accounts related to accounts receivable and related activity are summarized below: December 31, (In millions) 2020 2019 2018 Balance at beginning of year $ 10 $ 6 $ 8 Provision 1 6 2 Recoveries (3) (1) — Write-offs charged against the allowance (4) (1) (4) Balance at end of year $ 4 $ 10 $ 6 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | Discontinued operations are summarized as follows: Year Ended December 31, (In millions) 2019 2018 Net sales $ — $ — Cost of sales (2) (5) Gross margin (2) (5) Selling, general and administrative expenses — (1) Gain on Climate Transaction — 4 Restructuring expense 1 (1) Income (loss) from discontinued operations before income taxes (1) (3) Benefit for income taxes — 4 Net income (loss) from discontinued operations (1) 1 Net income (loss) from discontinued operations attributable to Visteon $ (1) $ 1 |
Non-Consolidated Affiliates (Ta
Non-Consolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Summary of investments in non-consolidated affiliates | A summary of the Company's investments in non-consolidated equity method affiliates is provided below: December 31, (In millions) 2020 2019 YFVIC (50%) $ 50 $ 43 Others 10 5 Total investments in non-consolidated affiliates $ 60 $ 48 A summary of the Company's investments in YFVIC is provided below: December 31, (In millions) 2020 2019 Payables due to YFVIC $ 9 $ 9 Exposure to loss in YFVIC Investment in YFVIC $ 50 $ 43 Receivables due from YFVIC 53 41 Subordinated loan receivable 6 8 Maximum exposure to loss in YFVIC $ 109 $ 92 |
Summary of transactions with affiliates | A summary of transactions with affiliates is shown below: Year Ended December 31, (In millions) 2020 2019 Billings to affiliates (a) $ 95 $ 75 Purchases from affiliates (b) $ 58 $ 73 (a) Primarily relates to parts production and engineering reimbursement (b) Primarily relates to engineering services as well as selling, general and administrative expenses |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserves and related activity | The Company’s consolidated restructuring reserves and related activity are summarized below, including amounts associated with discontinued operations. (In millions) December 31, 2017 $ 24 Expense 24 Change in estimates 6 Utilization (30) Foreign currency (1) December 31, 2018 23 Expense 5 Change in estimates (2) Utilization (15) Foreign currency (1) December 31, 2019 10 Expense 67 Change in estimates 9 Utilization (39) Foreign currency 2 December 31, 2020 $ 49 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories, net consist of the following components: December 31, (In millions) 2020 2019 Raw materials $ 114 $ 100 Work-in-process 25 28 Finished products 38 41 $ 177 $ 169 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of other current assets | Other current assets are comprised of the following components: December 31, (In millions) 2020 2019 Joint venture receivables $ 53 $ 41 Recoverable taxes 52 61 Contractually reimbursable engineering costs 31 29 Prepaid assets and deposits 18 22 China bank notes 15 16 Royalty agreements 7 17 Other 4 7 $ 180 $ 193 |
Schedule of other noncurrent assets | Other non-current assets are comprised of the following components: December 31, (In millions) 2020 2019 Deferred tax assets $ 55 $ 59 Contractually reimbursable engineering costs 31 24 Recoverable taxes 21 28 Royalty agreements 8 11 Joint venture note receivables 7 8 Other 13 20 $ 135 $ 150 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment, net consists of the following: December 31, (In millions) 2020 2019 Land $ 12 $ 12 Buildings and improvements 96 83 Machinery, equipment and other 706 599 Construction in progress 44 80 Product tooling 62 53 Total property and equipment 920 827 Accumulated depreciation and amortization (484) (391) Property and equipment, net $ 436 $ 436 |
Schedule of depreciation and amortization | Depreciation and product tooling amortization expenses are summarized as follows: Year Ended December 31, (In millions) 2020 2019 2018 Depreciation $ 83 $ 78 $ 73 Amortization 7 6 3 $ 90 $ 84 $ 76 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following: December 31, 2020 December 31, 2019 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangible Gross Intangibles Accumulated Amortization Net Intangible Definite-Lived: Developed technology 6 $ 41 $ (38) $ 3 $ 40 $ (35) $ 5 Customer related 10 95 (64) 31 89 (51) 38 Capitalized software development 3 44 (7) 37 32 (5) 27 Other 20 14 (7) 7 15 (4) 11 Subtotal 194 (116) 78 176 (95) 81 Indefinite-Lived: Goodwill 49 — 49 46 — 46 Total $ 243 $ (116) $ 127 $ 222 $ (95) $ 127 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of components of lease expense | The components of lease expense are as follows: Year Ended December 31, (In millions) 2020 2019 Operating lease cost (includes immaterial variable lease costs) $ (42) $ (41) Short-term lease cost (1) (1) Sublease income 5 5 Total lease cost $ (38) $ (37) Other information related to leases is as follows: Year Ended December 31, (In millions) 2020 2019 Cash out flows from operating leases $ 40 $ 38 Right-of-use assets obtained in exchange for lease obligations $ 38 $ 38 |
Summary of future minimum lease payments | Future minimum lease payments under non-cancellable leases is as follows: (In millions) 2021 $ 38 2022 35 2023 32 2024 29 2025 24 2026 and thereafter 43 Total future minimum lease payments 201 Less imputed interest (23) Total lease liabilities $ 178 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities are summarized as follows: December 31, (In millions) 2020 2019 Product warranty and recall accruals $ 52 $ 34 Deferred income 46 22 Restructuring reserves 39 10 Non-income taxes payable 15 17 Royalty reserves 13 19 Joint venture payables 9 9 Income taxes payable 5 7 Other 30 29 $ 209 $ 147 |
Schedule of other noncurrent liabilities | Other non-current liabilities are summarized as follows: December 31, (In millions) 2020 2019 Derivative financial instruments $ 38 $ 14 Product warranty and recall accruals 12 15 Restructuring reserves 10 — Deferred income 7 9 Royalty agreements 6 13 Income tax reserves 6 5 Other 13 16 $ 92 $ 72 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The Company’s short and long-term debt consists of the following: Weighted Average Carrying Value (In millions) 2020 2019 2020 2019 Short-Term Debt: Short-term borrowings —% 4.3% $ — $ 37 Long-Term Debt: Term facility, net 1.9% 3.2% $ 349 $ 348 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of retirement plan expenses | The Company's expense for all defined benefit pension plans, is as follows: U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, (In millions, except percentages) 2020 2019 2018 2020 2019 2018 Costs Recognized in Income: Pension service cost: Service cost $ — $ — $ — $ (2) $ (2) $ (2) Pension financing benefit (cost): Interest cost (24) (30) (27) (7) (8) (8) Expected return on plan assets 40 40 41 8 10 9 Amortization of losses and other (1) — — (2) (1) (2) Settlements and curtailments (5) — — — — — Restructuring related pension cost: Special termination benefits (a) (3) — (2) (4) (1) — Net pension income (expense) $ 7 $ 10 $ 12 $ (7) $ (2) $ (3) Weighted Average Assumptions: Discount rate 3.34 % 4.33 % 3.65 % 2.39 % 3.34 % 3.28 % Compensation increase N/A N/A N/A 3.16 % 3.51 % 3.62 % Long-term return on assets 6.60 % 6.78 % 6.74 % 3.98 % 4.73 % 4.86 % (a) Primarily related to restructuring actions |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | The benefit plan obligations for employee retirement plans with accumulated benefit obligations in excess of plan assets were as follows: Year Ended December 31, (In millions) 2020 2019 Accumulated benefit obligation $ 1,177 $ 1,088 Projected benefit obligation $ 1,190 $ 1,107 Fair value of plan assets $ 886 $ 830 |
Schedule of accumulated and projected benefit obligations | Assumptions used by the Company in determining its defined benefit pension obligations as of December 31, 2020 and 2019 are summarized in the following table: U.S. Plans Non-U.S. Plans Weighted Average Assumptions 2020 2019 2020 2019 Discount rate 2.60 % 3.34 % 1.78 % 2.39 % Rate of increase in compensation N/A N/A 2.14 % 3.16 % |
Schedule of defined benefit plans disclosures | The Company’s obligation for all defined benefit pension plans, is as follows: U.S. Plans Non-U.S. Plans Year Ended December 31, Year Ended December 31, (In millions) 2020 2019 2020 2019 Change in Benefit Obligation: Benefit obligation — beginning $ 838 $ 760 $ 300 $ 250 Service cost — — 2 2 Interest cost 24 30 7 8 Actuarial loss (gain) 97 88 15 40 Settlements (and curtailments) (37) — (4) — Special termination benefits 3 — 4 1 Foreign exchange translation — — 8 4 Benefits paid and other (34) (40) (10) (5) Benefit obligation — ending $ 891 $ 838 $ 322 $ 300 Change in Plan Assets: Plan assets — beginning $ 630 $ 567 $ 232 $ 200 Actual return on plan assets 82 102 21 26 Sponsor contributions 18 1 6 7 Settlements (37) — (2) — Foreign exchange translation — — 3 4 Benefits paid and other (34) (40) (10) (5) Plan assets — ending $ 659 $ 630 $ 250 $ 232 Total funded status at end of period $ (232) $ (208) $ (72) $ (68) Balance Sheet Classification: Other non-current assets $ — $ — $ 2 $ 3 Accrued employee liabilities — — (1) (2) Employee benefits (232) (208) (73) (69) Accumulated other comprehensive loss: Actuarial loss 127 79 52 50 Tax effects/other — (1) (14) (14) $ 127 $ 78 $ 38 $ 36 |
Schedule of amounts recognized in other comprehensive income (loss) | Components of the net change in AOCI related to all defined benefit pension plans, exclusive of amounts attributable to non-controlling interests on the Company’s Consolidated Statements of Changes in Equity for the years ended December 31, 2020 and 2019, are as follows: U.S. Plans Non-U.S. Plans (In millions) 2020 2019 2020 2019 Actuarial loss $ 55 $ 26 $ 1 $ 23 Deferred taxes — (1) — (5) Currency/other — — 3 1 Reclassification to net income (1) — (2) (1) Settlements (5) — — — $ 49 $ 25 $ 2 $ 18 |
Schedule of expected benefit payments | Benefit payments, which reflect expected future service, are expected to be paid by the Company plans as follows: (In millions) U.S. Plans Non-U.S. Plans 2021 $ 41 $ 6 2022 39 7 2023 39 8 2024 39 10 2025 40 9 Years 2026 - 2030 216 53 |
Schedule of allocation of plan assets | The Company’s retirement plan asset allocation as of December 31, 2020 and 2019 and target allocation for 2021 are as follows: Target Allocation Percentage of Plan Assets U.S. Non-U.S. U.S. Non-U.S. 2021 2021 2020 2019 2020 2019 Equity securities 38 % 34 % 41 % 37 % 29 % 38 % Fixed income 15 % 43 % 15 % 18 % 51 % 39 % Alternative strategies 46 % 14 % 39 % 44 % 12 % 14 % Cash 1 % 3 % 5 % 1 % 2 % 4 % Other — % 6 % — % — % 6 % 5 % 100 % 100 % 100 % 100 % 100 % 100 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | The total recognized and unrecognized stock-based compensation expense is as follows: Year Ended December 31, Unrecognized Stock-Based Compensation Expense (In millions) 2020 2019 2018 December 31, 2020 Performance based share units $ 6 $ 6 $ (2) $ 7 Restricted stock units 10 9 8 13 Stock options 2 2 2 1 Total stock-based compensation expense $ 18 $ 17 $ 8 $ 21 |
Summary of employee activity for PSUs | A summary of PSU activity is provided below: PSUs Weighted Average Grant Date Fair Value (In thousands) Non-vested as of December 31, 2017 461 $ 58.76 Granted 87 124.90 Vested (63) 105.29 Forfeited (290) 33.85 Non-vested as of December 31, 2018 195 110.42 Granted 71 111.98 Vested (73) 89.74 Forfeited (23) 118.87 Non-vested as of December 31, 2019 170 118.77 Granted 94 84.20 Vested (66) 116.35 Forfeited (18) 100.51 Non-vested as of December 31, 2020 180 $ 106.48 |
Schedule of valuation assumptions to estimate fair value of PSUs | Weighted average assumptions used to estimate the fair value of PSUs granted during the years ended as of December 31, 2020 and 2019 are as follows: Year Ended December 31, 2020 2019 Expected volatility 41.88 % 31.20 % Risk-free rate 0.67 % 2.43 % Expected dividend yield — % — % |
Summary of employee activity for RSUs | A summary of RSU activity is provided below: RSUs Weighted Average Grant Date Fair Value (In thousands) Non-vested as of December 31, 2017 230 $ 87.09 Granted 70 123.52 Vested (102) 96.34 Forfeited (34) 61.69 Non-vested as of December 31, 2018 164 105.24 Granted 141 79.61 Vested (71) 93.60 Forfeited (18) 92.18 Non-vested as of December 31, 2019 216 90.98 Granted 231 77.57 Vested (84) 95.70 Forfeited (46) 77.47 Non-vested as of December 31, 2020 317 $ 82.31 |
Weighted average assumptions used to estimate fair value of awards granted | Weighted average assumptions used to estimate the fair value of awards granted during the years ended December 31, 2020, 2019 and 2018 are as follows: Stock Options 2020 2019 2018 Expected term (in years) 5 5 5 Expected volatility 35.23 % 27.69 % 22.95 % Risk-free interest rate 0.75 % 2.43 % 2.58 % Expected dividend yield — % — % — % |
Summary of employee activity for stock options and SARs | A summary of Stock Options and SAR activity is provided below: Stock Options Weighted Average SARs Weighted Average (In thousands) (In thousands) December 31, 2017 166 $ 81.72 8 $ 69.21 Granted 78 124.35 — — Exercised (31) 68.02 (1) 51.25 December 31, 2018 213 99.36 7 72.84 Granted 106 80.97 — — Exercised (4) 59.37 — — Forfeited or expired (32) 96.02 — — December 31, 2019 283 93.51 7 72.84 Granted 112 66.98 — — Exercised (27) 84.98 (1) 56.59 Forfeited or expired (20) 96.12 — — December 31, 2020 348 $ 85.46 6 $ 74.77 Exercisable at December 31, 2020 162 $ 94.53 6 $ 74.77 Stock Options and SARs Outstanding Exercise Price Number Outstanding Weighted Weighted (In thousands) (In years) $10.00 - $60.00 4 0.9 $ 51.19 $60.01 - $80.00 146 5.2 $ 68.52 $80.01 - $100.00 143 4.4 $ 86.71 $100.01 - $130.00 61 4.3 $ 124.35 354 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the provision from continuing operations | Details of the Company's income tax provision from continuing operations are provided in the table below: Year Ended December 31, (In millions) 2020 2019 2018 Income (Loss) Before Income Taxes: (a) U.S $ (65) $ 5 $ 76 Non-U.S 39 95 127 Total income (loss) before income taxes $ (26) $ 100 $ 203 Current Tax Provision: Non-U.S $ 21 29 $ 42 Deferred Tax Provision (Benefit): Non-U.S 7 (5) 1 Total deferred tax provision (benefit) 7 (5) 1 Provision for income taxes $ 28 $ 24 $ 43 (a) Income (loss) before income taxes excludes equity in net income of non-consolidated affiliates. |
Schedule of effective income tax rate reconciliation | A summary of the differences between the provision for income taxes calculated at the U.S. statutory tax rate of 21% and the consolidated income tax provision from continuing operations is shown below: Year Ended December 31, (In millions) 2020 2019 2018 Tax provision (benefit) at U.S. statutory rate of 21% for 2020, 2019, and 2018 $ (5) $ 21 $ 43 Impact of foreign operations (15) 23 16 Non-U.S withholding taxes 5 10 14 Tax holidays in foreign operations (4) (5) (5) State and local income taxes — — 3 Tax reserve adjustments 1 2 (6) Change in valuation allowance 46 (10) (81) Impact of U.S. tax reform — (18) 33 Impact of tax law change — — 35 Research credits (1) (1) (5) Other 1 2 (4) Provision for income taxes $ 28 $ 24 $ 43 |
Schedule of deferred tax assets and liabilities | The components of deferred income tax assets and liabilities are as follows: December 31, (In millions) 2020 2019 Deferred Tax Assets: Net operating losses and credit carryforwards $ 1,192 $ 1,099 Employee benefit plans 80 73 Lease liability 59 55 Fixed assets and intangibles 12 14 Warranty 14 11 Inventory 9 9 Restructuring 13 5 Capitalized expenditures for tax reporting 5 5 Deferred income 10 4 Other 63 55 Valuation allowance (1,263) (1,132) Total deferred tax assets $ 194 $ 198 Deferred Tax Liabilities: Outside basis investment differences, including withholding tax $ 65 $ 64 Right-of-use assets 57 54 Fixed assets and intangibles 18 16 All other 27 32 Total deferred tax liabilities 167 166 Net deferred tax assets $ 27 $ 32 Consolidated Balance Sheet Classification: Other non-current assets $ 55 $ 59 Deferred tax liabilities non-current 28 27 Net deferred tax assets $ 27 $ 32 |
Summary of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits including amounts attributable to discontinued operations is as follows: Year Ended December 31, (In millions) 2020 2019 Beginning balance $ 13 $ 10 Tax positions related to current period Additions — 3 Tax positions related to prior periods Additions 1 1 Reductions — (1) Ending balance $ 14 $ 13 |
Stock-holders' Equity and Non-c
Stock-holders' Equity and Non-controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of non-controlling interests | Non-controlling interests in the Visteon Corporation economic entity are as follows: December 31, (In millions) 2020 2019 Yanfeng Visteon Automotive Electronics Co., Ltd. $ 57 $ 56 Shanghai Visteon Automotive Electronics Co., Ltd. 44 41 Changchun Visteon FAWAY Automotive Electronics Co., Ltd. 20 17 Other 2 1 $ 123 $ 115 |
Schedule of accumulated other comprehensive income (loss) | Changes in AOCI and reclassifications out of AOCI by component includes: Year Ended December 31, (In millions) 2020 2019 Changes in AOCI: Beginning balance $ (267) $ (216) Other comprehensive income (loss) before reclassification, net of tax (44) (46) Amounts reclassified from AOCI 7 (5) Ending balance $ (304) $ (267) Changes in AOCI by component: Foreign currency translation adjustments Beginning balance $ (153) $ (142) Other comprehensive income (loss) before reclassification (a) 38 (11) Ending balance (115) (153) Net investment hedge Beginning balance 4 (5) Other comprehensive income (loss) before reclassification (a) (14) 15 Amounts reclassified from AOCI (b) (5) (6) Ending balance (15) 4 Benefit plans Beginning balance (114) (71) Other comprehensive loss before reclassification, net of tax (c) (59) (44) Amounts reclassified from AOCI 8 1 Ending balance (165) (114) Unrealized hedging gain (loss) Beginning balance (4) 2 Other comprehensive income (loss) before reclassification, net of tax (d) (9) (6) Amounts reclassified from AOCI 4 — Ending balance (9) (4) AOCI ending balance $ (304) $ (267) (a) There were no income tax effects for either period due to the valuation allowance. (b) Amounts are included in "Interest expense" within the Consolidated Statements of Operations. (c) Amount included in the computation of net periodic pension cost. (See Note 12, "Employee Benefit Plans" for additional details.) Net of tax expense of less than $1 million, and tax benefit of $5 million related to benefit plans for the years ended December 31, 2020 and 2019, respectively. (d) There were no income tax effects for the periods ended December 31, 2020 and 2019. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | A summary of information used to compute basic and diluted earnings per share attributable to Visteon is as follows: Year Ended December 31, (In millions, except per share amounts) 2020 2019 2018 Numerator: Net income (loss) from continuing operations attributable to Visteon $ (56) $ 71 $ 163 Net income (loss) from discontinued operations attributable to Visteon — (1) 1 Net income (loss) attributable to Visteon $ (56) $ 70 $ 164 Denominator: Average common stock outstanding - basic 27.9 28.1 29.5 Dilutive effect of performance based share units and other — 0.1 0.2 Diluted shares 27.9 28.2 29.7 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon: Continuing operations $ (2.01) $ 2.53 $ 5.53 Discontinued operations — (0.04) 0.03 $ (2.01) $ 2.49 $ 5.56 Diluted earnings (loss) per share attributable to Visteon: Continuing operations $ (2.01) $ 2.52 $ 5.49 Discontinued operations — (0.04) 0.03 $ (2.01) $ 2.48 $ 5.52 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | The fair value hierarchy for assets and liabilities measured at fair value on a recurring basis are as follows: December 31, 2020 (In millions) Level 1 Level 2 Level 3 NAV Total Asset Category: Retirement plan assets $ 114 $ 228 $ 18 $ 549 $ 909 Foreign currency instruments $ — $ 1 $ — $ — $ 1 Liability Category: Foreign currency instruments $ — $ 27 $ — $ — $ 27 Interest rate swaps $ — $ 11 $ — $ — $ 11 December 31, 2019 (In millions) Level 1 Level 2 Level 3 NAV Total Asset Category: Retirement plan assets $ 131 $ 353 $ 15 $ 363 $ 862 Liability Category: Foreign currency instruments $ — $ 6 $ — $ — $ 6 Interest rate swaps $ — $ 7 $ — $ — $ 7 |
Schedule of fair value of retirement plan asset | The fair values of the Company’s U.S. retirement plan assets are as follows: (In millions) December 31, 2020 Asset Category Level 1 Level 2 NAV Total Registered investment companies $ 4 $ — $ — $ 4 Common trust funds — — 436 436 LDI — 100 — 100 Limited partnerships and hedge funds — — 84 84 Cash and cash equivalents 1 34 — 35 Total $ 5 $ 134 $ 520 $ 659 (In millions) December 31, 2019 Asset Category Level 1 Level 2 NAV Total Registered investment companies $ 3 $ — $ — $ 3 Common and preferred stock 27 — — 27 Common trust funds — 152 123 275 LDI — 111 — 111 Limited partnerships and hedge funds — — 206 206 Cash and cash equivalents 1 7 — 8 Total $ 31 $ 270 $ 329 $ 630 The fair values of the Company’s Non-U.S. retirement plan assets are as follows: (In millions) December 31, 2020 Asset Category Level 1 Level 2 Level 3 NAV Total Registered investment companies $ 10 $ 68 $ — $ — $ 78 Treasury and government securities 91 13 — — 104 Cash and cash equivalents 6 — — — 6 Corporate debt securities — 6 — — 6 Common and preferred stock 2 — — — 2 Common trust funds — 11 — 14 25 Limited partnerships — 1 1 15 17 Insurance contracts — — 17 — 17 Derivative instruments — (5) — — (5) Total $ 109 $ 94 $ 18 $ 29 $ 250 (In millions) December 31, 2019 Asset Category Level 1 Level 2 Level 3 NAV Total Registered investment companies $ 59 $ 24 $ — $ — $ 83 Treasury and government securities 34 18 — — 52 Cash and cash equivalents 4 1 — — 5 Corporate debt securities — 8 — — 8 Common and preferred stock 3 — — — 3 Common trust funds — 35 — 18 53 Limited partnerships — — — 16 16 Insurance contracts — — 15 — 15 Derivative instruments — (3) — — (3) Total $ 100 $ 83 $ 15 $ 34 $ 232 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gains and losses on derivative instruments | Financial Statement Presentation Gains and losses on derivative financial instruments for the years ended December 31, 2020 and 2019 are as follows: Amount of Gain (Loss) Recorded Income (Loss) in AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in Income (Loss) (In millions) 2020 2019 2020 2019 2020 2019 Foreign currency risk – Sales: Non-designated cash flow hedges $ — $ — $ — $ — $ — $ 1 Foreign currency risk – Cost of sales: Non-designated cash flow hedges — — — — — (1) Interest rate risk - Interest expense, net: Net investment hedges (14) 15 5 6 — — Interest rate swap (9) (6) (4) — — — $ (23) $ 9 $ 1 $ 6 $ — $ — |
Summary of percentage of sales and accounts receivable | The following is a summary of the percentage of net sales and accounts receivable from the Company's largest ultimate customers: Percentage of Total Net Sales Percentage of Total Accounts Receivable December 31, December 31, 2020 December 31, 2019 2020 2019 2018 Ford 22 % 22 % 26 % 13 % 12 % Mazda 11 % 14 % 18 % 8 % 5 % Renault/Nissan 11 % 13 % 12 % 11 % 13 % BMW 11 % 8 % 3 % 8 % 6 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of product warranty liability | The following table provides a reconciliation of changes in the product warranty and recall liability: Year Ended December 31, (In millions) 2020 2019 Beginning balance $ 49 $ 48 Provisions 38 26 Change in estimates (7) (2) Currency/other 3 (1) Settlements (19) (22) Ending balance $ 64 $ 49 |
Segment Information and Reven_2
Segment Information and Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of adjusted EBITDA to net income | The reconciliation of Adjusted EBITDA to net income attributable to Visteon for the years ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, (In millions) 2020 2019 2018 Net income (loss) attributable to Visteon Corporation $ (56) $ 70 $ 164 Depreciation and amortization 104 100 91 Restructuring expense, net 76 4 29 Provision for income taxes 28 24 43 Non-cash, stock-based compensation expense 18 17 8 Interest expense, net 11 9 7 Net income attributable to non-controlling interests 8 11 10 Net (income) loss from discontinued operations, net of tax — 1 (1) Equity in net income of non-consolidated affiliates (6) (6) (13) Other, net 9 4 (8) Adjusted EBITDA $ 192 $ 234 $ 330 |
Summary of sales by geographical region | Financial information about net sales and net tangible long-lived assets by country are as follows: Net Sales (a) Tangible Long-Lived Assets, Net (b) Year Ended December 31, December 31, (In millions) 2020 2019 2018 2020 2019 United States $ 536 $ 663 $ 654 $ 122 $ 81 Mexico 29 38 67 50 105 Total North America 565 701 721 172 186 Portugal 635 602 563 110 97 Slovakia 251 237 235 51 45 Tunisia 41 71 96 12 10 Other Europe 40 68 87 59 55 Total Europe 967 978 981 232 207 China Domestic 479 527 405 China Export 196 262 309 Total China 675 789 714 85 93 Japan 244 393 494 31 23 India 93 110 114 51 50 Other Asia-Pacific 41 57 70 12 13 Total Other Asia-Pacific 378 560 678 94 86 South America 71 91 79 25 29 Inter-region eliminations (108) (174) (189) $ 2,548 $ 2,945 $ 2,984 $ 608 $ 601 (a) Company sales based on geographic region where sale originates and not where customer is located. (b) Tangible long-lived assets include property, plant and equipment and right-of-use assets. |
Schedule of revenue from external customers by product lines | Disaggregated revenue by product lines is as follows: Year Ended December 31, (In millions) 2020 2019 Product Lines Instrument clusters $ 1,323 $ 1,314 Audio and infotainment 478 721 Information displays 422 486 Body and security 99 117 Telematics 57 76 Climate controls 49 72 Other 120 159 $ 2,548 $ 2,945 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense), net | Year Ended December 31, (In millions) 2020 2019 2018 Pension financing benefits, net $ 14 $ 10 $ 13 Pension settlement charge (5) — — Transformation initiatives — — 4 Gain on non-consolidated transactions, net — — 4 $ 9 $ 10 $ 21 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Net changes in transaction price | 0.01 | ||
Foreign currency transaction gain (loss) | $ (2,000,000) | $ (3,000,000) | $ (6,000,000) |
Research and development expense | 201,000,000 | 300,000,000 | 286,000,000 |
Restricted cash | 4,000,000 | 3,000,000 | |
Receivables for customer-owned production tooling | 26,000,000 | 31,000,000 | |
Goodwill, impairment | $ 0 | ||
Technology-based intangible assets | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 3 years | ||
Technology-based intangible assets | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 5 years | ||
Developed technology | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 6 years | ||
Developed technology | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 6 years | ||
Developed technology | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 12 years | ||
Customer-related intangible assets | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 7 years | ||
Customer-related intangible assets | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 12 years | ||
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 15 years | ||
Letter of Credit Facility | |||
Property, Plant and Equipment [Line Items] | |||
Restricted cash | $ 3,000,000 | 2,000,000 | |
Cash collateral for other corporate purposes | |||
Property, Plant and Equipment [Line Items] | |||
Restricted cash | 1,000,000 | 1,000,000 | |
In process research and development | |||
Property, Plant and Equipment [Line Items] | |||
Research and development expense | $ 134,000,000 | $ 140,000,000 | $ 146,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 10 | $ 6 | $ 8 |
Provision | 1 | 6 | 2 |
Recoveries | (3) | (1) | 0 |
Write-offs charged against the allowance | (4) | (1) | (4) |
Balance at end of year | $ 4 | $ 10 | $ 6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue (Details) | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 12 months |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 01, 2018 | |
Business Acquisition [Line Items] | |||
Additional ownership interest (percent) | 1.00% | ||
Controlling interest (percent) | 51.00% | ||
Benefit for income taxes | $ 4 | ||
HVCC | |||
Business Acquisition [Line Items] | |||
Benefit on settlement of litigation | 3 | ||
Brazil | Facility closing | |||
Business Acquisition [Line Items] | |||
Restructuring costs | $ 2 | $ 4 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of discontinued operation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Benefit for income taxes | $ 4 | ||
Net income (loss) from discontinued operations | $ 0 | $ (1) | 1 |
Net income (loss) from discontinued operations attributable to Visteon | $ 0 | (1) | 1 |
Discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 0 | 0 | |
Cost of sales | (2) | (5) | |
Gross margin | (2) | (5) | |
Selling, general and administrative expenses | 0 | (1) | |
Restructuring expense | 1 | (1) | |
Income (loss) from discontinued operations before income taxes | (1) | (3) | |
Benefit for income taxes | 0 | 4 | |
Net income (loss) from discontinued operations | (1) | 1 | |
Net income (loss) from discontinued operations attributable to Visteon | (1) | 1 | |
HVCC | Discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on Climate Transaction | $ 0 | $ 4 |
Non-Consolidated Affiliates - N
Non-Consolidated Affiliates - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Equity in net income of non-consolidated affiliates | $ 6 | $ 6 | $ 13 | |
NAV | ||||
Related Party Transaction [Line Items] | ||||
Investment commitment | $ 5 | $ 15 | ||
YFVIC | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment (percent) | 50.00% | |||
YFVE | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment (percent) | 50.00% | |||
Ownership interest acquired | 49.00% |
Non-Consolidated Affiliates - I
Non-Consolidated Affiliates - Investments in Non-Consolidated Equity Method Affiliates (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 01, 2018 |
Related Party Transaction [Line Items] | |||
Investment in YFVIC | $ 60,000 | $ 48,000 | $ 300 |
YFVIC | |||
Related Party Transaction [Line Items] | |||
Investment in YFVIC | 50,000 | 43,000 | |
Others | |||
Related Party Transaction [Line Items] | |||
Investment in YFVIC | $ 10,000 | $ 5,000 |
Non-Consolidated Affiliates - S
Non-Consolidated Affiliates - Summary of Transactions with Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Billings to affiliates | $ 95 | $ 75 |
Purchases from affiliates | $ 58 | $ 73 |
Non-Consolidated Affiliates -_2
Non-Consolidated Affiliates - Summary of Investments in YFVIC (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 01, 2018 |
Related Party Transaction [Line Items] | |||
Payables due to YFVIC | $ 9,000 | $ 9,000 | |
Investment in YFVIC | 60,000 | 48,000 | $ 300 |
Maximum exposure to loss in YFVIC | 109,000 | 92,000 | |
Receivables due from YFVIC | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 53,000 | 41,000 | |
Subordinated loan receivable | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 6,000 | 8,000 | |
YFVIC | |||
Related Party Transaction [Line Items] | |||
Investment in YFVIC | $ 50,000 | $ 43,000 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)facility | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserves | $ 10 | $ 39 | $ 10 | ||
Expense | $ 76 | 4 | $ 29 | ||
Number of facilities | facility | 2 | ||||
Restructuring reserves | 0 | $ 10 | 0 | ||
Electronics | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserves | 10 | 49 | 10 | 23 | $ 24 |
Expense | 67 | 5 | 24 | ||
January 2020 Eng SGA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | 26 | ||||
Restructuring reserves | 11 | ||||
March 2020 Eng & SGA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | 16 | ||||
Restructuring reserves | 2 | ||||
September 2020 Eng & SGA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | 32 | ||||
Restructuring reserves | 30 | ||||
December 2020 Eng & SGA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | 2 | ||||
Restructuring costs | 2 | ||||
Mexico 2020 Manufacturing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expense | 1 | ||||
2019 Europe Manufacturing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | $ 2 | ||||
South America Legacy & North America Manufacturing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | $ 2 | 24 | |||
Restructuring reserves | 2 | ||||
2016 Engineering & SGA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, net of reversals | 5 | ||||
2016 Other Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserves | $ 2 | ||||
Restructuring costs | $ 1 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Restructuring Reserves and Related Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 10 | ||
Expense | 76 | $ 4 | $ 29 |
Restructuring reserve, ending balance | 39 | 10 | |
Electronics | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 10 | 23 | 24 |
Expense | 67 | 5 | 24 |
Change in estimates | 9 | (2) | 6 |
Utilization | (39) | (15) | (30) |
Foreign currency | 2 | (1) | (1) |
Restructuring reserve, ending balance | $ 49 | $ 10 | $ 23 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 114 | $ 100 |
Work-in-process | 25 | 28 |
Finished products | 38 | 41 |
Inventories, net | $ 177 | $ 169 |
Other Assets - Current Assets (
Other Assets - Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Joint venture receivables | $ 53 | $ 41 |
Recoverable taxes | 52 | 61 |
Contractually reimbursable engineering costs | 31 | 29 |
Prepaid assets and deposits | 18 | 22 |
China bank notes | 15 | 16 |
Royalty agreements | 7 | 17 |
Other | 4 | 7 |
Total other current assets | $ 180 | $ 193 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets [Abstract] | ||
Amount of China bank notes sold | $ 163 | $ 81 |
Reimbursement for engineering costs in year one | 31 | |
Reimbursement for engineering costs expected in year two | 16 | |
Reimbursement for engineering costs expected in year three | 8 | |
Reimbursement for engineering costs expected in year four | 3 | |
Reimbursement for engineering costs expected in year five and beyond | $ 4 |
Other Assets - Noncurrent Asset
Other Assets - Noncurrent Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Deferred tax assets | $ 55 | $ 59 |
Contractually reimbursable engineering costs | 31 | 24 |
Recoverable taxes | 21 | 28 |
Royalty agreements | 8 | 11 |
Joint venture note receivables | 7 | 8 |
Other | 13 | 20 |
Total other noncurrent assets | $ 135 | $ 150 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 12 | $ 12 |
Buildings and improvements | 96 | 83 |
Machinery, equipment and other | 706 | 599 |
Construction in progress | 44 | 80 |
Product tooling | 62 | 53 |
Total property and equipment | 920 | 827 |
Accumulated depreciation and amortization | (484) | (391) |
Property and equipment, net | $ 436 | $ 436 |
Property and Equipment - Summ_2
Property and Equipment - Summary of Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 83 | $ 78 | $ 73 |
Amortization | 7 | 6 | 3 |
Depreciation and Amortization Expense | $ 90 | $ 84 | $ 76 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 2 | ||
Capitalized internal use software costs | $ 18 | 21 | |
Amortization expense of capitalized internal use software costs | 9 | $ 9 | $ 7 |
Amortization expense, 2021 | 18 | ||
Amortization expense, 2022 | 18 | ||
Amortization expense, 2023 | 15 | ||
Amortization expense, 2024 | 9 | ||
Amortization expense, 2025 | 8 | ||
Capitalized software development | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense, 2021 | 7 | ||
Amortization expense, 2022 | 5 | ||
Amortization expense, 2023 | 3 | ||
Amortization expense, 2024 | 2 | ||
Amortization expense, 2025 | $ 1 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets, gross | $ 194 | $ 176 |
Accumulated amortization | (116) | (95) |
Intangible assets, net | 78 | 81 |
Goodwill and Indefinite-lived Intangible Assets [Abstract] | ||
Goodwill, gross | 49 | 46 |
Goodwill, net | 49 | 46 |
Total goodwill and intangible assets, gross | 243 | 222 |
Total goodwill and intangible assets, net | $ 127 | 127 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 6 years | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets, gross | $ 41 | 40 |
Accumulated amortization | (38) | (35) |
Intangible assets, net | $ 3 | 5 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 10 years | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets, gross | $ 95 | 89 |
Accumulated amortization | (64) | (51) |
Intangible assets, net | $ 31 | 38 |
Capitalized software development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 3 years | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets, gross | $ 44 | 32 |
Accumulated amortization | (7) | (5) |
Intangible assets, net | $ 37 | 27 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 20 years | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets, gross | $ 14 | 15 |
Accumulated amortization | (7) | (4) |
Intangible assets, net | $ 7 | $ 11 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense, 2021 | $ 18 | ||
Amortization expense, 2022 | 18 | ||
Amortization expense, 2023 | 15 | ||
Amortization expense, 2024 | 9 | ||
Amortization expense, 2025 | 8 | ||
Electronics | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ (14) | $ (16) | $ (15) |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term | 6 years | 7 years |
Weighted average discount rate (percent) | 4.10% | 4.50% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Abstract] | ||
Operating lease cost (includes immaterial variable lease costs) | $ (42) | $ (41) |
Short-term lease cost | (1) | (1) |
Sublease income | 5 | 5 |
Total lease cost | (38) | (37) |
Cash out flows from operating leases | 40 | 38 |
Right-of-use assets obtained in exchange for lease obligations | $ 38 | $ 38 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 38 |
2022 | 35 |
2023 | 32 |
2024 | 29 |
2025 | 24 |
2026 and thereafter | 43 |
Total future minimum lease payments | 201 |
Less imputed interest | (23) |
Total lease liabilities | $ 178 |
Other Liabilities - Other Curre
Other Liabilities - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Product warranty and recall accruals | $ 52 | $ 34 |
Deferred income | 46 | 22 |
Restructuring reserves | 39 | 10 |
Non-income taxes payable | 15 | 17 |
Royalty reserves | 13 | 19 |
Joint venture payables | 9 | 9 |
Income taxes payable | 5 | 7 |
Other | 30 | 29 |
Total other current liabilities | $ 209 | $ 147 |
Other Liabilities - Other Noncu
Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Derivative financial instruments | $ 38 | $ 14 |
Product warranty and recall accruals | 12 | 15 |
Restructuring reserves | 10 | 0 |
Deferred income | 7 | 9 |
Royalty agreements | 6 | 13 |
Income tax reserves | 6 | 5 |
Other | 13 | 16 |
Total other noncurrent liabilities | $ 92 | $ 72 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Term facility, net | ||
Long-Term Debt: | ||
Weighted Average Interest Rate (percent) | 1.90% | 3.20% |
Carrying Value | $ 349 | $ 348 |
Short-term borrowings | ||
Short-Term Debt: | ||
Weighted Average Interest Rate (percent) | 0.00% | 4.30% |
Carrying Value | $ 0 | $ 37 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Amended LOC agreement facility capacity | $ 5,000,000 |
Required collateral equal to the aggregate stated amount of the LOCs (percent) | 103.00% |
LOC collateral percentage for draws in non-U.S. currencies (percent) | 110.00% |
Amount secured by cash collateral | $ 3,000,000 |
Debt Instrument, collateral amount | $ 1,000,000 |
Maximum | |
Debt Instrument [Line Items] | |
Financial maintenance covenant | 3.50 |
LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.75% |
LIBOR | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.00% |
LIBOR | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 2.00% |
Term facility, net | |
Debt Instrument [Line Items] | |
Face amount | $ 350,000,000 |
LOC Facility issued by local affiliates | |
Debt Instrument [Line Items] | |
Amount secured by cash collateral | 8,000,000 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Face amount | 400,000,000 |
Credit facility, amount outstanding | 0 |
Maximum borrowing capacity, revolving credit facility | 75,000,000 |
Maximum borrowing capacity, swing line advances | 20,000,000 |
Affiliated Entity | |
Debt Instrument [Line Items] | |
Working capital facility availability | $ 182,000,000 |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Plans | |||
Costs Recognized in Income: | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | (24) | (30) | (27) |
Expected return on plan assets | 40 | 40 | 41 |
Amortization of losses and other | (1) | 0 | 0 |
Settlements and curtailments | (5) | 0 | 0 |
Special termination benefits | (3) | 0 | (2) |
Net pension income (expense) | $ 7 | $ 10 | $ 12 |
U.S. Plans | Weighted Average | |||
Weighted Average Assumptions: | |||
Discount rate | 3.34% | 4.33% | 3.65% |
Long-term return on assets | 6.60% | 6.78% | 6.74% |
Non-U.S. Plans | |||
Costs Recognized in Income: | |||
Service cost | $ (2) | $ (2) | $ (2) |
Interest cost | (7) | (8) | (8) |
Expected return on plan assets | 8 | 10 | 9 |
Amortization of losses and other | (2) | (1) | (2) |
Settlements and curtailments | 0 | 0 | 0 |
Special termination benefits | (4) | (1) | 0 |
Net pension income (expense) | $ (7) | $ (2) | $ (3) |
Weighted Average Assumptions: | |||
Compensation increase | 2.14% | 3.16% | |
Non-U.S. Plans | Weighted Average | |||
Weighted Average Assumptions: | |||
Discount rate | 2.39% | 3.34% | 3.28% |
Compensation increase | 3.16% | 3.51% | 3.62% |
Long-term return on assets | 3.98% | 4.73% | 4.86% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions by employer, deferred | $ 2 | ||
Matching contribution | 100.00% | ||
Matching Contribution, percent of employees pay | 6.00% | ||
Defined Contribution Plan, matching contribution expenses | $ 5 | $ 8 | $ 7 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate (percent) | 0.80% | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate (percent) | 8.75% | ||
U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | $ (5) | 0 | |
Cash contributions by employer | 18 | $ 1 | |
Estimated future employer contributions in next fiscal year | $ 17 | ||
Discount rate (percent) | 2.60% | 3.34% | |
Other postretirement benefit obligations | $ 891 | $ 838 | 760 |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | 0 | 0 | |
Cash contributions by employer | 6 | $ 7 | |
Estimated future employer contributions in next fiscal year | $ 7 | ||
Discount rate (percent) | 1.78% | 2.39% | |
Other postretirement benefit obligations | $ 322 | $ 300 | $ 250 |
Other Pension, Postretirement and Supplemental Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligations | 1,199 | 1,116 | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other postretirement benefit obligations | $ 1 | $ 1 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Postretirement Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | $ 1,177 | $ 1,088 | |
Projected benefit obligation | 1,190 | 1,107 | |
Fair value of plan assets | 886 | 830 | |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 250 | $ 232 | $ 200 |
Weighted Average Assumptions: | |||
Discount rate (percent) | 1.78% | 2.39% | |
Rate of increase in compensation (percent) | 2.14% | 3.16% | |
U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 659 | $ 630 | $ 567 |
Weighted Average Assumptions: | |||
Discount rate (percent) | 2.60% | 3.34% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Plan Assets: | |||
Plan assets — beginning | $ 830 | ||
Plan assets — ending | 886 | $ 830 | |
U.S. Plans | |||
Change in Benefit Obligation: | |||
Benefit obligation — beginning | 838 | 760 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 24 | 30 | 27 |
Actuarial loss (gain) | 97 | 88 | |
Settlements (and curtailments) | (37) | 0 | |
Special termination benefits | 3 | 0 | 2 |
Foreign exchange translation | 0 | 0 | |
Benefits paid and other | (34) | (40) | |
Benefit obligation — ending | 891 | 838 | 760 |
Change in Plan Assets: | |||
Plan assets — beginning | 630 | 567 | |
Actual return on plan assets | 82 | 102 | |
Sponsor contributions | 18 | 1 | |
Settlements | (37) | 0 | |
Foreign exchange translation | 0 | 0 | |
Benefits paid and other | (34) | (40) | |
Plan assets — ending | 659 | 630 | 567 |
Total funded status at end of period | (232) | (208) | |
Accumulated other comprehensive loss: | |||
Actuarial loss | 127 | 79 | |
Tax effects/other | 0 | (1) | |
Accumulated other comprehensive income (loss) | 127 | 78 | |
U.S. Plans | Other non-current assets | |||
Balance Sheet Classification: | |||
Other non-current assets | 0 | 0 | |
U.S. Plans | Accrued Employee Liabilities | |||
Balance Sheet Classification: | |||
Accrued employee liabilities | 0 | 0 | |
U.S. Plans | Employee Benefits | |||
Balance Sheet Classification: | |||
Employee benefits | (232) | (208) | |
Non-U.S. Plans | |||
Change in Benefit Obligation: | |||
Benefit obligation — beginning | 300 | 250 | |
Service cost | 2 | 2 | 2 |
Interest cost | 7 | 8 | 8 |
Actuarial loss (gain) | 15 | 40 | |
Settlements (and curtailments) | (4) | 0 | |
Special termination benefits | 4 | 1 | 0 |
Foreign exchange translation | 8 | 4 | |
Benefits paid and other | (10) | (5) | |
Benefit obligation — ending | 322 | 300 | 250 |
Change in Plan Assets: | |||
Plan assets — beginning | 232 | 200 | |
Actual return on plan assets | 21 | 26 | |
Sponsor contributions | 6 | 7 | |
Settlements | (2) | 0 | |
Foreign exchange translation | 3 | 4 | |
Benefits paid and other | (10) | (5) | |
Plan assets — ending | 250 | 232 | $ 200 |
Total funded status at end of period | (72) | (68) | |
Accumulated other comprehensive loss: | |||
Actuarial loss | 52 | 50 | |
Tax effects/other | (14) | (14) | |
Accumulated other comprehensive income (loss) | 38 | 36 | |
Non-U.S. Plans | Other non-current assets | |||
Balance Sheet Classification: | |||
Other non-current assets | 2 | 3 | |
Non-U.S. Plans | Accrued Employee Liabilities | |||
Balance Sheet Classification: | |||
Accrued employee liabilities | (1) | (2) | |
Non-U.S. Plans | Employee Benefits | |||
Balance Sheet Classification: | |||
Employee benefits | $ (73) | $ (69) |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit plans, tax (benefit) expense | $ 1 | $ 5 | $ 1 |
Currency/other | (45) | 13 | $ 46 |
U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial loss | 55 | 26 | |
Benefit plans, tax (benefit) expense | 0 | (1) | |
Currency/other | 0 | 0 | |
Reclassification to net income | (1) | 0 | |
Settlements | (5) | 0 | |
Accumulated other comprehensive income (loss), net of tax | 49 | 25 | |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial loss | 1 | 23 | |
Benefit plans, tax (benefit) expense | 0 | (5) | |
Currency/other | 3 | 1 | |
Reclassification to net income | (2) | (1) | |
Settlements | 0 | 0 | |
Accumulated other comprehensive income (loss), net of tax | $ 2 | $ 18 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
U.S. Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2021 | $ 41 |
2022 | 39 |
2023 | 39 |
2024 | 39 |
2025 | 40 |
Years 2026 - 2030 | 216 |
Non-U.S. Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2021 | 6 |
2022 | 7 |
2023 | 8 |
2024 | 10 |
2025 | 9 |
Years 2026 - 2030 | $ 53 |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocation (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
U.S. Plans | Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 38.00% | |
Percentage of Plan Assets | 41.00% | 37.00% |
U.S. Plans | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 15.00% | |
Percentage of Plan Assets | 15.00% | 18.00% |
U.S. Plans | Alternative strategies | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 46.00% | |
Percentage of Plan Assets | 39.00% | 44.00% |
U.S. Plans | Cash | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 1.00% | |
Percentage of Plan Assets | 5.00% | 1.00% |
U.S. Plans | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 0.00% | |
Percentage of Plan Assets | 0.00% | 0.00% |
Non-U.S. Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
Non-U.S. Plans | Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 34.00% | |
Percentage of Plan Assets | 29.00% | 38.00% |
Non-U.S. Plans | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 43.00% | |
Percentage of Plan Assets | 51.00% | 39.00% |
Non-U.S. Plans | Alternative strategies | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 14.00% | |
Percentage of Plan Assets | 12.00% | 14.00% |
Non-U.S. Plans | Cash | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 3.00% | |
Percentage of Plan Assets | 2.00% | 4.00% |
Non-U.S. Plans | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Allocation | 6.00% | |
Percentage of Plan Assets | 6.00% | 5.00% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Decrease to selling, general and administrative expenses | $ 10 | |
2010 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
2010 Incentive Plan, number of shares authorized | 4,750,000 | |
2020 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
2010 Incentive Plan, number of shares authorized | 1,500,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 18 | $ 17 | $ 8 |
Unrecognized compensation expense | 21 | ||
Performance based share units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 6 | 6 | (2) |
Unrecognized compensation expense | 7 | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 10 | 9 | 8 |
Unrecognized compensation expense | 13 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | $ 2 | $ 2 |
Unrecognized compensation expense | $ 1 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Based Share Units Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 21 | |||
Performance based share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period ( in years) | 3 years | |||
Unrecognized compensation expense | $ 7 | |||
Outstanding shares (in shares) | 180 | 170 | 195 | 461 |
Performance based units equity award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 7 | |||
Weighted average remaining vesting period (in years) | 1 year 8 months 12 days | |||
Performance based units liability award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining vesting period (in years) | 2 years | |||
Cash settlement payments | $ 1 | $ 1 | ||
Outstanding shares (in shares) | 1,000 |
Stock-Based Compensation - Pe_2
Stock-Based Compensation - Performance Based Share Units (Details) - Performance based share units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PSUs | |||
Non-vested at beginning of period (in shares) | 170 | 195 | 461 |
Granted (in shares) | 94 | 71 | 87 |
Vested (in shares) | (66) | (73) | (63) |
Forfeited (in shares) | (18) | (23) | (290) |
Non-vested at end of period (in shares) | 180 | 170 | 195 |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value beginning of period (in dollars per share) | $ 118.77 | $ 110.42 | $ 58.76 |
Weighted average exercise price, Granted (in dollars per share) | 84.20 | 111.98 | 124.90 |
Weighted average exercise price, Vested (in dollars per share) | 116.35 | 89.74 | 105.29 |
Weighted average exercise price, Forfeited (in dollars per share) | 100.51 | 118.87 | 33.85 |
Weighted average grant date fair value ending of period (in dollars per share) | $ 106.48 | $ 118.77 | $ 110.42 |
Weighted Average Assumptions | |||
Expected volatility | 41.88% | 31.20% | |
Risk-free interest rate | 0.67% | 2.43% | |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation - RSUs
Stock-Based Compensation - RSUs Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock units equity award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period ( in years) | 3 years | |||
Granted (in shares) | 223 | 133 | 70 | |
Weighted average exercise price, Granted (in dollars per share) | $ 75.52 | $ 79.88 | $ 123.52 | |
Restricted stock units liability award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 8 | 8 | ||
Weighted average exercise price, Granted (in dollars per share) | $ 76.27 | $ 75.02 | ||
Restricted stock units liability award | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 12 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 231 | 141 | 70 | |
Weighted average exercise price, Granted (in dollars per share) | $ 77.57 | $ 79.61 | $ 123.52 | |
Unrecognized compensation expense | $ 1 | |||
Weighted average remaining vesting period (in years) | 1 year 8 months 12 days | |||
Cash settlement payments | $ 1 | $ 1 | $ 1 | |
Outstanding shares (in shares) | 317 | 216 | 164 | 230 |
Weighted average grant date fair value (in dollars per share) | $ 82.31 | $ 90.98 | $ 105.24 | $ 87.09 |
Restricted stock units | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period ( in years) | 1 year | |||
Outstanding shares (in shares) | 85 | |||
Weighted average grant date fair value (in dollars per share) | $ 81.05 |
Stock-Based Compensation - RS_2
Stock-Based Compensation - RSUs (Details) - Restricted stock units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RSUs | |||
Non-vested at beginning of period (in shares) | 216 | 164 | 230 |
Granted (in shares) | 231 | 141 | 70 |
Vested (in shares) | 84 | 71 | 102 |
Forfeited (in shares) | (46) | (18) | (34) |
Non-vested at end of period (in shares) | 317 | 216 | 164 |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value beginning of period (in dollars per share) | $ 90.98 | $ 105.24 | $ 87.09 |
Weighted average exercise price, Granted (in dollars per share) | 77.57 | 79.61 | 123.52 |
Weighted average exercise price, Vested (in dollars per share) | 95.70 | 93.60 | 96.34 |
Weighted average exercise price, Forfeited (in dollars per share) | 77.47 | 92.18 | 61.69 |
Weighted average grant date fair value ending of period (in dollars per share) | $ 82.31 | $ 90.98 | $ 105.24 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and SARs Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 21 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 33.00% | ||
Vesting period ( in years) | 3 years | ||
Proceeds from stock options exercised | $ 2 | $ 1 | $ 3 |
Intrinsic value of options exercised | 1 | $ 1 | $ 2 |
Unrecognized compensation expense | $ 1 | ||
Weighted average remaining vesting period (in years) | 1 year 6 months | ||
Stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 33.00% | ||
Minimum | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration date of options | 7 years | ||
Maximum | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration date of options | 10 years |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options and SARs (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Exercise Price | |||
Number of outstanding options (in shares) | 354 | ||
$10.00 - $60.00 | |||
Exercise Price | |||
Exercise price range, lower (in dollars per share) | $ 10 | ||
Exercise price range, upper (in dollars per share) | $ 60 | ||
Number of outstanding options (in shares) | 4 | ||
Weighted average remaining life (in years) | 10 months 24 days | ||
Weighted average exercise price (in dollars per share) | $ 51.19 | ||
$60.01 - $80.00 | |||
Exercise Price | |||
Exercise price range, lower (in dollars per share) | 80 | ||
Exercise price range, upper (in dollars per share) | $ 60.01 | ||
Number of outstanding options (in shares) | 146 | ||
Weighted average remaining life (in years) | 5 years 2 months 12 days | ||
Weighted average exercise price (in dollars per share) | $ 68.52 | ||
$80.01 - $100.00 | |||
Exercise Price | |||
Exercise price range, lower (in dollars per share) | 80.01 | ||
Exercise price range, upper (in dollars per share) | $ 100 | ||
Number of outstanding options (in shares) | 143 | ||
Weighted average remaining life (in years) | 4 years 4 months 24 days | ||
Weighted average exercise price (in dollars per share) | $ 86.71 | ||
$100.01 - $130.00 | |||
Exercise Price | |||
Exercise price range, lower (in dollars per share) | 100.01 | ||
Exercise price range, upper (in dollars per share) | $ 130 | ||
Number of outstanding options (in shares) | 61 | ||
Weighted average remaining life (in years) | 4 years 3 months 18 days | ||
Weighted average exercise price (in dollars per share) | $ 124.35 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 5 years | 5 years | 5 years |
Expected volatility | 35.23% | 27.69% | 22.95% |
Risk-free interest rate | 0.75% | 2.43% | 2.58% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock Options | |||
Outstanding options, beginning of period (in shares) | 283 | 213 | 166 |
Granted (in shares) | 112 | 106 | 78 |
Exercised (in shares) | (27) | (4) | (31) |
Forfeited or expired (in shares) | (20) | (32) | |
Outstanding options, end of period (in shares) | 348 | 283 | 213 |
Weighted Average Exercise Price | |||
Weighted average exercise price, beginning (in dollars per share) | $ 93.51 | $ 99.36 | $ 81.72 |
Weighted average exercise price, granted (in dollars per share) | 66.98 | 80.97 | 124.35 |
Weighted average exercise price, exercised (in dollars per share) | 84.98 | 59.37 | 68.02 |
Weighted average exercise price, Forfeited or expired (in dollars per share) | 96.12 | 96.02 | |
Weighted average exercise price, ending (in dollars per share) | $ 85.46 | $ 93.51 | $ 99.36 |
Exercisable (in shares) | 162 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 94.53 | ||
Stock appreciation rights | |||
SARs | |||
Non-vested at beginning of period (in shares) | 7 | 7 | 8 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (1) | 0 | (1) |
Forfeited or expired (in shares) | 0 | 0 | |
Non-vested at end of period (in shares) | 6 | 7 | 7 |
Exercisable (in shares) | 6 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 74.77 | ||
Weighted Average Exercise Price | |||
Weighted average exercise price, beginning (in dollars per share) | 72.84 | $ 72.84 | $ 69.21 |
Weighted average exercise price, granted (in dollars per share) | 0 | 0 | 0 |
Weighted average exercise price, exercised (in dollars per share) | 56.59 | 0 | 51.25 |
Weighted average exercise price, forfeited or expired (in dollars per share) | 0 | 0 | |
Weighted average exercise price, ending (in dollars per share) | $ 74.77 | $ 72.84 | $ 72.84 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | |||
Total income (loss) before income taxes | $ (26) | $ 100 | $ 203 |
Total deferred tax provision (benefit) | 7 | (5) | 1 |
Provision for income taxes | 28 | 24 | 43 |
U.S | |||
Income Tax Examination [Line Items] | |||
Total income (loss) before income taxes | (65) | 5 | 76 |
Non-U.S | |||
Income Tax Examination [Line Items] | |||
Total income (loss) before income taxes | 39 | 95 | 127 |
Non-U.S. current tax provision | 21 | 29 | 42 |
Non-U.S. deferred tax provision (benefit) | $ 7 | $ (5) | $ 1 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate (percent) | 21.00% | ||
Tax provision (benefit) at U.S. statutory rate of 21% for 2020, 2019, and 2018 | $ (5) | $ 21 | $ 43 |
Impact of foreign operations | (15) | 23 | 16 |
Non-U.S withholding taxes | 5 | 10 | 14 |
Tax holidays in foreign operations | (4) | (5) | (5) |
State and local income taxes | 0 | 0 | 3 |
Tax reserve adjustments | 1 | 2 | (6) |
Change in valuation allowance | 46 | (10) | (81) |
Impact of U.S. tax reform | 0 | (18) | 33 |
Impact of tax law change | 0 | 0 | 35 |
Research credits | (1) | (1) | (5) |
Other | 1 | 2 | (4) |
Provision for income taxes | $ 28 | $ 24 | $ 43 |
Income Taxes - Income Tax Pro_2
Income Taxes - Income Tax Provision Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | |||
Provision for income taxes | $ 28 | $ 24 | $ 43 |
Impact of foreign operations | 15 | (23) | (16) |
Tax credit, foreign | 10 | ||
Other | 1 | 2 | (4) |
Change in valuation allowance | 46 | (10) | (81) |
Foreign earnings repatriated | 33 | ||
Impact of U.S. tax reform | 0 | (18) | 33 |
Tax adjustments related to income tax expense | (10) | ||
Impact of tax law change | 0 | 0 | 35 |
Tax reserve adjustments | $ 1 | 2 | (6) |
U.S. and non U.S. income taxes related to the planned repatriation of earnings from foreign affiliates | |||
Income Tax Examination [Line Items] | |||
Impact of foreign operations | (6) | ||
Worldwide | |||
Income Tax Examination [Line Items] | |||
Tax adjustments related to income tax expense | 8 | ||
Non-US | |||
Income Tax Examination [Line Items] | |||
Impact of foreign operations | (8) | ||
Impact of U.S. tax reform | 18 | ||
Impact of tax law change | 9 | ||
U.S. Plans | |||
Income Tax Examination [Line Items] | |||
Impact of foreign operations | (8) | ||
Change in valuation allowance | $ (8) | ||
Tax adjustments related to income tax expense | $ 2 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Liabilities Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax liabilities | $ 167 | $ 167 | $ 166 | ||
Deferred tax assets, capital loss carryforwards | 18 | 18 | |||
U.S. research tax credit carryforwards | 21 | 21 | |||
Annual limitations under IRC Section 382 and 383 | 120 | ||||
Domestic country and foreign country witholding taxes | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax liabilities | 27 | 27 | $ 4 | $ 26 | |
Valuation Allowance, increase (decrease) | 3 | ||||
Domestic country and foreign country witholding taxes | Germany | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax liabilities | $ 12 | ||||
Non-U.S | |||||
Operating Loss Carryforwards [Line Items] | |||||
Non-U.S. net operating loss carryforwards | 1,500 | 1,500 | |||
U.S | |||||
Operating Loss Carryforwards [Line Items] | |||||
U.S. net operating loss carryforwards | 1,800 | 1,800 | |||
U.S. foreign tax credit carryforwards | 385 | 385 | |||
State and local jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
U.S. net operating loss carryforwards | 32 | 32 | |||
Tax credit carryforwards realized after the Effective Date | |||||
Operating Loss Carryforwards [Line Items] | |||||
U.S. net operating loss carryforwards | 18 | 18 | |||
Tax credit carryforwards realized after the Effective Date | Non-U.S | |||||
Operating Loss Carryforwards [Line Items] | |||||
U.S. foreign tax credit carryforwards | $ 385 | $ 385 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | ||
Net operating losses and credit carryforwards | $ 1,192 | $ 1,099 |
Employee benefit plans | 80 | 73 |
Lease liability | 59 | 55 |
Fixed assets and intangibles | 12 | 14 |
Warranty | 14 | 11 |
Inventory | 9 | 9 |
Restructuring | 13 | 5 |
Capitalized expenditures for tax reporting | 5 | 5 |
Deferred income | 10 | 4 |
Other | 63 | 55 |
Valuation allowance | (1,263) | (1,132) |
Total deferred tax assets | 194 | 198 |
Deferred Tax Liabilities: | ||
Outside basis investment differences, including withholding tax | 65 | 64 |
Right-of-use assets | 57 | 54 |
Fixed assets and intangibles | 18 | 16 |
All other | 27 | 32 |
Total deferred tax liabilities | 167 | 166 |
Net deferred tax assets | 27 | 32 |
Other non-current assets | ||
Deferred Tax Liabilities: | ||
Other non-current assets | 55 | 59 |
Other non-current liabilities | ||
Deferred Tax Liabilities: | ||
Deferred tax liabilities non-current | $ 28 | $ 27 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 14 | $ 13 | $ 10 | |
Unrecognized tax benefits that would impact effective tax rate | 7 | 6 | ||
Income tax expense and related amounts accrued | 2 | 2 | ||
Tax adjustments related to income tax expense | 10 | |||
Income Tax Credits and Adjustments | 6 | |||
Benefit for income taxes | $ 4 | |||
Liability for uncertain tax positions, non-current | 6 | |||
Liability for uncertainty in income taxes, current | 3 | |||
Visteon Sistemas Automotivos | ||||
Income Tax Contingency [Line Items] | ||||
Tax audit appeals payment | 11 | $ 15 | ||
Worldwide | ||||
Income Tax Contingency [Line Items] | ||||
Tax adjustments related to income tax expense | $ (8) | |||
Tax audit appeals and refund claims receivable | $ 16 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning balance | $ 13 | $ 10 |
Tax positions related to current period, additions | 0 | 3 |
Tax positions related to prior periods, Additions | 1 | 1 |
Tax positions related to prior periods, Reductions | 0 | (1) |
Unrecognized tax benefits, ending balance | $ 14 | $ 13 |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-controlling Interests - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2018 | Oct. 31, 2010 | ||
Class of Warrant or Right [Line Items] | ||||||
Share repurchase authorized amount | $ 700 | |||||
Repurchase of common stock | [1] | $ 16 | $ 20 | $ 300 | ||
Treasury stock (in shares) | 27,156,537 | 27,044,003 | ||||
Non-controlling interests | $ 123 | $ 115 | ||||
10-year Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants, term | 10 years | |||||
Exercise price of warrants (in dollars per share) | $ 9.66 | |||||
Special distribution (in dollars per share) | $ 43.40 | |||||
Warrant, expired (in shares) | 909 | |||||
Open Market Share Repurchase Program | ||||||
Class of Warrant or Right [Line Items] | ||||||
Stock repurchased during period (in shares) | 233,769 | 322,120 | 2,805,531 | |||
Treasury stock acquired ( in usd per share) | $ 67.87 | $ 62.06 | $ 106.92 | |||
10b5-1 Share Repurchase Program | ||||||
Class of Warrant or Right [Line Items] | ||||||
Repurchase of common stock | $ 16 | $ 20 | $ 300 | |||
Other | ||||||
Class of Warrant or Right [Line Items] | ||||||
Non-controlling interests | $ 2 | $ 1 | ||||
[1] | The Company has combined cash flows from discontinued operations with cash flows from continuing operations within the operating, investing and financing categories. |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-controlling Interests - Schedule of Non-controlling Interests (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 123 | $ 115 |
Yanfeng Visteon Automotive Electronics Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 57 | 56 |
Shanghai Visteon Automotive Electronics Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 44 | 41 |
Changchun Visteon FAWAY Automotive Electronics Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 20 | 17 |
Other | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 2 | $ 1 |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-controlling Interests - AOCI (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | $ (267,000,000) | ||
Accumulated other comprehensive income (loss), ending balance | (304,000,000) | $ (267,000,000) | |
Defined benefit plan, gain (loss), tax benefit | 1,000,000 | (5,000,000) | |
Unrealized hedging gains (losses), tax expense | 0 | 0 | $ 1,000,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (267,000,000) | (216,000,000) | |
Other comprehensive income (loss) before reclassification, net of tax | (44,000,000) | (46,000,000) | |
Amounts reclassified from AOCI | 7,000,000 | (5,000,000) | |
Accumulated other comprehensive income (loss), ending balance | (304,000,000) | (267,000,000) | (216,000,000) |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (153,000,000) | (142,000,000) | |
Other comprehensive income (loss) before reclassification, net of tax | 38,000,000 | (11,000,000) | |
Accumulated other comprehensive income (loss), ending balance | (115,000,000) | (153,000,000) | (142,000,000) |
Foreign currency translation adjustments | Net investment hedge | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | 4,000,000 | (5,000,000) | |
Other comprehensive income (loss) before reclassification, net of tax | (14,000,000) | 15,000,000 | |
Amounts reclassified from AOCI | (5,000,000) | (6,000,000) | |
Accumulated other comprehensive income (loss), ending balance | (15,000,000) | 4,000,000 | (5,000,000) |
Benefit plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (114,000,000) | (71,000,000) | |
Other comprehensive income (loss) before reclassification, net of tax | (59,000,000) | (44,000,000) | |
Amounts reclassified from AOCI | 8,000,000 | 1,000,000 | |
Accumulated other comprehensive income (loss), ending balance | (165,000,000) | (114,000,000) | (71,000,000) |
Unrealized hedging gain (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), beginning balance | (4,000,000) | 2,000,000 | |
Other comprehensive income (loss) before reclassification, net of tax | (9,000,000) | (6,000,000) | |
Amounts reclassified from AOCI | 4,000,000 | 0 | |
Accumulated other comprehensive income (loss), ending balance | $ (9,000,000) | $ (4,000,000) | $ 2,000,000 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net income (loss) from continuing operations attributable to Visteon | $ (56) | $ 71 | $ 163 |
Net income (loss) from discontinued operations attributable to Visteon | 0 | (1) | 1 |
Net income (loss) attributable to Visteon Corporation | $ (56) | $ 70 | $ 164 |
Denominator: | |||
Average common stock outstanding - basic (in shares) | 27,900 | 28,100 | 29,500 |
Dilutive effect of performance based share units and other (in shares) | 0 | 100 | 200 |
Diluted shares (in shares) | 27,900 | 28,200 | 29,700 |
Basic earnings (loss) per share attributable to Visteon: | |||
Continuing operations (in dollars per share) | $ (2.01) | $ 2.53 | $ 5.53 |
Discontinued operations (in dollars per share) | 0 | (0.04) | 0.03 |
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | (2.01) | 2.49 | 5.56 |
Diluted earnings (loss) per share attributable to Visteon: | |||
Continuing operations (in dollars per share) | (2.01) | 2.52 | 5.49 |
Discontinued operations (in dollars per share) | 0 | (0.04) | 0.03 |
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ (2.01) | $ 2.48 | $ 5.52 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 276 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Asset impairment charges | $ 2 | |
Fair value of debt | $ 390 | $ 347 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Asset Category: | ||
Retirement plan assets | $ 886 | $ 830 |
Fair value measurements, recurring | Estimate of fair value measurement | ||
Asset Category: | ||
Retirement plan assets | 909 | 862 |
Foreign currency instruments | 1 | |
Liability Category: | ||
Foreign currency instruments | 27 | 6 |
Interest rate swaps | 11 | 7 |
Level 1 | Fair value measurements, recurring | ||
Asset Category: | ||
Retirement plan assets | 114 | 131 |
Foreign currency instruments | 0 | |
Liability Category: | ||
Foreign currency instruments | 0 | 0 |
Interest rate swaps | 0 | 0 |
Level 2 | Fair value measurements, recurring | ||
Asset Category: | ||
Retirement plan assets | 228 | 353 |
Foreign currency instruments | 1 | |
Liability Category: | ||
Foreign currency instruments | 27 | 6 |
Interest rate swaps | 11 | 7 |
Level 3 | Fair value measurements, recurring | ||
Asset Category: | ||
Retirement plan assets | 18 | 15 |
Foreign currency instruments | 0 | |
Liability Category: | ||
Foreign currency instruments | 0 | 0 |
Interest rate swaps | 0 | 0 |
NAV | Fair value measurements, recurring | Estimate of fair value measurement | ||
Asset Category: | ||
Retirement plan assets | 549 | 363 |
Foreign currency instruments | 0 | |
Liability Category: | ||
Foreign currency instruments | 0 | 0 |
Interest rate swaps | $ 0 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Values of Retirement Plan Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | $ 886 | $ 830 | |
U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 659 | 630 | $ 567 |
Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 250 | 232 | $ 200 |
Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 250 | 232 | |
Registered investment companies | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 4 | 3 | |
Registered investment companies | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 78 | 83 | |
Treasury and government securities | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 104 | 52 | |
Cash and cash equivalents | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 35 | 8 | |
Cash and cash equivalents | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Corporate debt securities | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 6 | 8 | |
Common and preferred stock | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 27 | ||
Common and preferred stock | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 2 | 3 | |
Common trust funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 436 | 275 | |
Common trust funds | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 25 | 53 | |
LDI | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 100 | 111 | |
Limited partnerships and hedge funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 84 | 206 | |
Limited partnerships and hedge funds | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 17 | 16 | |
Insurance contracts | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 17 | 15 | |
Derivative instruments | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | (5) | (3) | |
Level 1 | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 5 | 31 | |
Level 1 | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 109 | 100 | |
Level 1 | Registered investment companies | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 4 | 3 | |
Level 1 | Registered investment companies | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 10 | 59 | |
Level 1 | Treasury and government securities | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 91 | 34 | |
Level 1 | Cash and cash equivalents | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Level 1 | Cash and cash equivalents | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 6 | 4 | |
Level 1 | Corporate debt securities | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common and preferred stock | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 27 | ||
Level 1 | Common and preferred stock | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 2 | 3 | |
Level 1 | Common trust funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common trust funds | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | LDI | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Limited partnerships and hedge funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Limited partnerships and hedge funds | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Insurance contracts | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Derivative instruments | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 134 | 270 | |
Level 2 | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 94 | 83 | |
Level 2 | Registered investment companies | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Registered investment companies | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 68 | 24 | |
Level 2 | Treasury and government securities | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 13 | 18 | |
Level 2 | Cash and cash equivalents | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 34 | 7 | |
Level 2 | Cash and cash equivalents | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Level 2 | Corporate debt securities | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 6 | 8 | |
Level 2 | Common and preferred stock | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 2 | Common and preferred stock | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Common trust funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 152 | |
Level 2 | Common trust funds | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 11 | 35 | |
Level 2 | LDI | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 100 | 111 | |
Level 2 | Limited partnerships and hedge funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Limited partnerships and hedge funds | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Level 2 | Insurance contracts | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Derivative instruments | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | (5) | (3) | |
Level 3 | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 18 | 15 | |
Level 3 | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 34 | ||
Level 3 | Registered investment companies | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Registered investment companies | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 | Treasury and government securities | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Treasury and government securities | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 | Cash and cash equivalents | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Cash and cash equivalents | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 | Corporate debt securities | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Corporate debt securities | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 | Common and preferred stock | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common and preferred stock | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 | Common trust funds | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common trust funds | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 18 | ||
Level 3 | Limited partnerships and hedge funds | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Level 3 | Limited partnerships and hedge funds | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 16 | ||
Level 3 | Insurance contracts | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 17 | 15 | |
Level 3 | Insurance contracts | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 | Derivative instruments | Non-U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Derivative instruments | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 520 | 329 | |
NAV | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 29 | ||
NAV | Registered investment companies | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
NAV | Registered investment companies | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | Treasury and government securities | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | Cash and cash equivalents | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
NAV | Cash and cash equivalents | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | Corporate debt securities | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | Common and preferred stock | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | Common and preferred stock | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | Common trust funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 436 | 123 | |
NAV | Common trust funds | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 14 | ||
NAV | LDI | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
NAV | Limited partnerships and hedge funds | U.S. Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 84 | $ 206 | |
NAV | Limited partnerships and hedge funds | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 15 | ||
NAV | Insurance contracts | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | 0 | ||
NAV | Derivative instruments | Non-U.S. Plans | Estimate of fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of plan assets | $ 0 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow hedging | ||
Derivative [Line Items] | ||
Derivative financial instruments, term (up to) | 18 months | |
Foreign exchange contract | ||
Derivative [Line Items] | ||
Derivative financial instruments, term (up to) | 18 months | |
Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 300 | $ 250 |
Currency swap | ||
Derivative [Line Items] | ||
Derivative, fair value (less than) | (27) | (6) |
Cash flow hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | 18 | 8 |
Designated as hedging instrument | Cash flow hedging | Net investment hedge | ||
Derivative [Line Items] | ||
Amount of accumulated other income expected to be reclassified | 5 | |
Designated as hedging instrument | Derivative financial instruments, assets | Foreign exchange contract | ||
Derivative [Line Items] | ||
Derivative, fair value (less than) | 1 | (1) |
Designated as hedging instrument | Net investment hedges | Foreign exchange contract | ||
Derivative [Line Items] | ||
Derivative, fair value (less than) | $ (11) | $ (7) |
Financial Instruments - Derivat
Financial Instruments - Derivatives Income Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest rate risk | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded Income (Loss) in AOCI, net of tax | $ (23) | $ 9 |
Reclassified from AOCI into Income (Loss) | 1 | 6 |
Recorded in Income (Loss) | 0 | 0 |
Non-designated cash flow hedges | Foreign exchange contract | Fair value hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded Income (Loss) in AOCI, net of tax | 0 | 0 |
Non-designated cash flow hedges | Foreign exchange contract | Sales | Fair value hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from AOCI into Income (Loss) | 0 | 0 |
Recorded in Income (Loss) | 0 | 1 |
Non-designated cash flow hedges | Foreign exchange contract | Cost of sales | Fair value hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from AOCI into Income (Loss) | 0 | 0 |
Recorded in Income (Loss) | 0 | (1) |
Designated as hedging instrument | Interest rate risk | Net investment hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded Income (Loss) in AOCI, net of tax | (14) | 15 |
Reclassified from AOCI into Income (Loss) | 5 | 6 |
Designated as hedging instrument | Interest rate risk | Cost of sales | Net investment hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded in Income (Loss) | 0 | 0 |
Designated as hedging instrument | Interest rate swap | Fair value hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded Income (Loss) in AOCI, net of tax | (9) | (6) |
Reclassified from AOCI into Income (Loss) | (4) | 0 |
Recorded in Income (Loss) | $ 0 | $ 0 |
Financial Instruments - Credit
Financial Instruments - Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Ford | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 22.00% | 22.00% | 26.00% |
Ford | Accounts receivable | Credit concentration risk | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 13.00% | 12.00% | |
Mazda | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 11.00% | 14.00% | 18.00% |
Mazda | Accounts receivable | Credit concentration risk | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 8.00% | 5.00% | |
Renault/Nissan | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 11.00% | 13.00% | 12.00% |
Renault/Nissan | Accounts receivable | Credit concentration risk | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 11.00% | 13.00% | |
BMW | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 11.00% | 8.00% | 3.00% |
BMW | Accounts receivable | Credit concentration risk | |||
Concentration Risk [Line Items] | |||
Entity-wide revenue, major customer, percentage | 8.00% | 6.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 09, 2019 | Oct. 31, 2019 | May 31, 2014 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2003 |
Product Liability Contingency [Line Items] | ||||||||
Amount of bonds issued by the Charter Township of Van Buren, Michigan | $ 28 | |||||||
Estimated shortfall in tax revenues of the Township | $ 28 | $ 1 | ||||||
Increase in pre-tax income | $ 17 | |||||||
Decrease to selling, general and administrative expenses | $ 10 | |||||||
Transformation initiatives | 4 | |||||||
Revenues | $ 2,548 | $ 2,945 | 2,984 | |||||
Outstanding guarantees | 5 | $ 1 | ||||||
Iran | Certain HVCC subsidiaries in China | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Revenues | $ 12 | |||||||
Brazil | Pending litigation | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Loss contingency accrual | 9 | |||||||
Estimate of possible loss | $ 57 | |||||||
HVCC | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Benefit on settlement of litigation | $ 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Reconciliation of Changes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Product warranty accrual, including held for sale, beginning balance | $ 49 | $ 48 |
Provisions | 38 | 26 |
Change in estimates | (7) | (2) |
Currency/other | 3 | (1) |
Settlements | (19) | (22) |
Product warranty accrual, including held for sale, ending balance | $ 64 | $ 49 |
Segment Information and Reven_3
Segment Information and Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Revenues | $ 2,548 | $ 2,945 | $ 2,984 |
Adjusted EBITDA | $ 192 | $ 234 | $ 330 |
Segment Information and Reven_4
Segment Information and Revenue Recognition - Adjusted EBITDA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | |||
Net income (loss) attributable to Visteon | $ (56) | $ 70 | $ 164 |
Depreciation and amortization | 104 | 100 | 91 |
Restructuring expense, net | 76 | 4 | 29 |
Provision for income taxes | 28 | 24 | 43 |
Non-cash, stock-based compensation expense | 18 | 17 | 8 |
Interest expense, net | 11 | 9 | 7 |
Net income attributable to non-controlling interests | 8 | 11 | 10 |
Net (income) loss from discontinued operations, net of tax | 0 | 1 | (1) |
Equity in net income of non-consolidated affiliates | (6) | (6) | (13) |
Other, net | 9 | 4 | (8) |
Adjusted EBITDA | $ 192 | $ 234 | $ 330 |
Segment Information and Reven_5
Segment Information and Revenue Recognition - Sales and Assets by Geographic Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,548 | $ 2,945 | $ 2,984 |
Tangible Long-Lived Assets, Net | 608 | 601 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 536 | 663 | 654 |
Tangible Long-Lived Assets, Net | 122 | 81 | |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Revenues | 29 | 38 | 67 |
Tangible Long-Lived Assets, Net | 50 | 105 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Revenues | 565 | 701 | 721 |
Tangible Long-Lived Assets, Net | 172 | 186 | |
Portugal | |||
Segment Reporting Information [Line Items] | |||
Revenues | 635 | 602 | 563 |
Tangible Long-Lived Assets, Net | 110 | 97 | |
Slovakia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 251 | 237 | 235 |
Tangible Long-Lived Assets, Net | 51 | 45 | |
Tunisia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 41 | 71 | 96 |
Tangible Long-Lived Assets, Net | 12 | 10 | |
Other Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 40 | 68 | 87 |
Tangible Long-Lived Assets, Net | 59 | 55 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 967 | 978 | 981 |
Tangible Long-Lived Assets, Net | 232 | 207 | |
China | |||
Segment Reporting Information [Line Items] | |||
Revenues | 675 | 789 | 714 |
Tangible Long-Lived Assets, Net | 85 | 93 | |
China | China Domestic | |||
Segment Reporting Information [Line Items] | |||
Revenues | 479 | 527 | 405 |
China | China Export | |||
Segment Reporting Information [Line Items] | |||
Revenues | 196 | 262 | 309 |
Japan | |||
Segment Reporting Information [Line Items] | |||
Revenues | 244 | 393 | 494 |
Tangible Long-Lived Assets, Net | 31 | 23 | |
India | |||
Segment Reporting Information [Line Items] | |||
Revenues | 93 | 110 | 114 |
Tangible Long-Lived Assets, Net | 51 | 50 | |
Other Asia-Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenues | 41 | 57 | 70 |
Tangible Long-Lived Assets, Net | 12 | 13 | |
Asia-Pacific, Excluding China | |||
Segment Reporting Information [Line Items] | |||
Revenues | 378 | 560 | 678 |
Tangible Long-Lived Assets, Net | 94 | 86 | |
South America | |||
Segment Reporting Information [Line Items] | |||
Revenues | 71 | 91 | 79 |
Tangible Long-Lived Assets, Net | 25 | 29 | |
Inter-region eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (108) | $ (174) | $ (189) |
Segment Information and Reven_6
Segment Information and Revenue Recognition - Revenue from external customers by products and services (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,548 | $ 2,945 | $ 2,984 |
Instrument clusters | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,323 | 1,314 | |
Audio and infotainment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 478 | 721 | |
Information displays | |||
Segment Reporting Information [Line Items] | |||
Revenues | 422 | 486 | |
Body and security | |||
Segment Reporting Information [Line Items] | |||
Revenues | 99 | 117 | |
Telematics | |||
Segment Reporting Information [Line Items] | |||
Revenues | 57 | 76 | |
Climate controls | |||
Segment Reporting Information [Line Items] | |||
Revenues | 49 | 72 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 120 | $ 159 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Pension financing benefits, net | $ 14 | $ 10 | $ 13 |
Pension settlement charge | (5) | 0 | 0 |
Transformation initiatives | 0 | 0 | 4 |
Gain on non-consolidated transactions, net | 0 | 0 | 4 |
Other income, net | $ 9 | $ 10 | $ 21 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 01, 2018 | |
Other Income and Expenses [Abstract] | ||||
Pension settlement charge | $ (5,000) | $ 0 | $ 0 | |
Transformation initiatives | $ 4,000 | |||
Investment in YFVIC | $ 60,000 | $ 48,000 | $ 300 | |
Additional ownership interest (percent) | 1.00% | |||
Controlling interest (percent) | 51.00% |
SCHEDULE II _ VALUATION AND Q_2
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances, Beginning of Period | $ 10 | $ 6 | $ 8 |
(Benefits)/ Charges to Income | (2) | 5 | 2 |
Deductions | (4) | (1) | (4) |
Other | 0 | 0 | 0 |
Valuation Allowances, End of Period | 4 | 10 | 6 |
Valuation allowance for deferred taxes | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances, Beginning of Period | 1,132 | 1,144 | 1,242 |
(Benefits)/ Charges to Income | 46 | (10) | (81) |
Deductions | 0 | 0 | 0 |
Other | 85 | (2) | (17) |
Valuation Allowances, End of Period | 1,263 | 1,132 | 1,144 |
Valuation allowance for deferred taxes | Discontinued operations | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Other | 49 | ||
Valuation allowance for deferred taxes | Foreign currency gain (loss) | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Other | 20 | (7) | (18) |
Valuation allowance for deferred taxes | Other comprehensive income (loss) | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Other | $ 16 | $ (5) | $ (1) |