Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-15827 | |
Entity Registrant Name | VISTEON CORP | |
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 $.01 Per Share | |
Trading Symbol | VC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,199,370 | |
Amendment Flag | false | |
Entity Central Index Key | 0001111335 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 983 | $ 848 | $ 1,950 | $ 1,666 |
Cost of sales | (879) | (774) | (1,736) | (1,516) |
Gross margin | 104 | 74 | 214 | 150 |
Selling, general and administrative expenses | (52) | (43) | (104) | (87) |
Restructuring and impairment | (1) | (4) | (2) | (11) |
Interest expense | (4) | (4) | (9) | (7) |
Interest income | 1 | 1 | 3 | 2 |
Equity in net income of non-consolidated affiliates | (2) | 1 | (7) | 4 |
Other income (expense), net | (10) | 5 | (7) | 10 |
Income (loss) before income taxes | 36 | 30 | 88 | 61 |
Provision for income taxes | (13) | (7) | (27) | (15) |
Net income (loss) | 23 | 23 | 61 | 46 |
Less: Net (income) loss attributable to non-controlling interests | (3) | 1 | (7) | 0 |
Net income (loss) attributable to Visteon Corporation | 20 | 24 | 46 | |
Comprehensive income: | ||||
Comprehensive income (loss) | 3 | (21) | 56 | 6 |
Less: Comprehensive (income) loss attributable to non-controlling interests | 1 | 5 | (2) | 4 |
Comprehensive income (loss) attributable to Visteon Corporation | $ 4 | $ (16) | $ 54 | $ 10 |
Basic earnings (loss) per share: | ||||
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.71 | $ 0.85 | $ 1.91 | $ 1.64 |
Diluted earnings (loss) per share | ||||
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.70 | $ 0.85 | $ 1.88 | $ 1.61 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and equivalents | $ 455 | $ 520 |
Restricted cash | 4 | 3 |
Accounts receivable, net | 678 | 672 |
Inventories, net | 329 | 348 |
Other current assets | 131 | 167 |
Total current assets | 1,597 | 1,710 |
Property and equipment, net | 367 | 364 |
Intangible assets, net | 88 | 99 |
Right-of-use assets | 122 | 124 |
Investments in non-consolidated affiliates | 37 | 49 |
Other non-current assets | 110 | 104 |
Total assets | 2,321 | 2,450 |
LIABILITIES AND EQUITY | ||
Short-term debt | 21 | 13 |
Accounts payable | 564 | 657 |
Accrued employee liabilities | 74 | 90 |
Current lease liability | 30 | 29 |
Other current liabilities | 222 | 246 |
Total current liabilities | 911 | 1,035 |
Long-term debt, net | 327 | 336 |
Employee benefits | 109 | 115 |
Non-current lease liability | 93 | 99 |
Deferred tax liabilities | 30 | 27 |
Other non-current liabilities | 73 | 64 |
Stockholders’ equity: | ||
Preferred stock (par value 0.01, 50 million shares authorized, none outstanding as of June 30, 2023 and December 31, 2022) | $ 0 | 0 |
Common stock, shares, issued (in shares) | 55 | |
Common stock, shares authorized (in shares) | 250 | |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, and 28.2 million shares outstanding as of June 30, 2023 and December 31, 2022) | $ 1 | 1 |
Additional paid-in capital | 1,341 | 1,352 |
Retained earnings | 1,842 | 1,788 |
Accumulated other comprehensive loss | (213) | (213) |
Treasury stock | (2,266) | (2,253) |
Total Visteon Corporation stockholders’ equity | 705 | 675 |
Non-controlling interests | 73 | 99 |
Total equity | 778 | 774 |
Total liabilities and equity | $ 2,321 | $ 2,450 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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 | |
Common stock, shares authorized (in shares) | 250,000,000 | |
Common stock, shares, issued (in shares) | 55,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities | ||
Net income (loss) | $ 61 | $ 46 |
Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 55 | 52 |
Non-cash stock-based compensation | 17 | 13 |
Equity in net loss (income) of non-consolidated affiliates, net of dividends remitted | 7 | (4) |
Asset Impairment Charges | 0 | 4 |
Other non-cash items | (4) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (7) | (74) |
Inventories | 17 | (62) |
Accounts payable | (89) | (2) |
Other assets and other liabilities | (15) | (45) |
Net cash provided from (used by) operating activities | 42 | (72) |
Investing Activities | ||
Capital expenditures, including intangibles | (51) | (36) |
Contributions to equity method investments | 0 | (1) |
Payments for (Proceeds from) Hedge, Investing Activities | 0 | 5 |
Other | 2 | 1 |
Net cash used by investing activities | (49) | (31) |
Financing Activities | ||
Payments of Ordinary Dividends, Noncontrolling Interest | (15) | 0 |
Short-term debt, net | 3 | (4) |
Repurchase of common stock | (30) | 0 |
Payments Related to Tax Withholding for Share-based Compensation | (15) | 0 |
Proceeds from Stock Options Exercised | 4 | 0 |
Investment Company, Debt Instrument, Amount Repaid to Principal, Excess (Less) | (4) | 0 |
Net cash used by financing activities | (57) | (4) |
Effect of exchange rate changes on cash | (23) | |
Net decrease in cash, equivalents, and restricted cash | (64) | (130) |
Cash, equivalents, and restricted cash at beginning of the period | 523 | 455 |
Cash, equivalents, and restricted cash at end of the period | $ 459 | $ 325 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Visteon Corporation Stockholders' Equity | Non-Controlling Interests | Treasury Stock, Common |
Beginning balance at Dec. 31, 2021 | $ 616 | $ 1 | $ 1,349 | $ 1,664 | $ (229) | $ 516 | $ 100 | $ (2,269) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 23 | 22 | 22 | 1 | ||||
Other comprehensive income (loss) | 4 | 4 | 4 | 0 | ||||
Stock-based compensation, net | (1) | (10) | (1) | 9 | ||||
Ending balance at Mar. 31, 2022 | 642 | 1 | 1,339 | 1,686 | (225) | 541 | 101 | (2,260) |
Beginning balance at Dec. 31, 2021 | 616 | 1 | 1,349 | 1,664 | (229) | 516 | 100 | (2,269) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 46 | |||||||
Ending balance at Jun. 30, 2022 | 626 | 1 | 1,345 | 1,710 | (265) | 532 | 94 | (2,259) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock | 0 | |||||||
Beginning balance at Mar. 31, 2022 | 642 | 1 | 1,339 | 1,686 | (225) | 541 | 101 | (2,260) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 23 | 24 | 24 | (1) | ||||
Other comprehensive income (loss) | (44) | (40) | (40) | (4) | ||||
Stock-based compensation, net | 7 | 6 | 7 | 1 | ||||
Dividends to non-controlling interest | 2 | |||||||
Ending balance at Jun. 30, 2022 | 626 | 1 | 1,345 | 1,710 | (265) | 532 | 94 | (2,259) |
Beginning balance at Dec. 31, 2022 | 774 | 1 | 1,352 | 1,788 | (213) | 675 | 99 | (2,253) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 38 | 34 | 34 | 4 | ||||
Other comprehensive income (loss) | 15 | 16 | 16 | (1) | ||||
Stock-based compensation, net | (5) | (18) | (5) | 13 | ||||
Dividends to non-controlling interest | 15 | |||||||
Ending balance at Mar. 31, 2023 | 807 | 1 | 1,334 | 1,822 | (197) | 720 | 87 | (2,240) |
Beginning balance at Dec. 31, 2022 | 774 | 1 | 1,352 | 1,788 | (213) | 675 | 99 | (2,253) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 61 | 54 | ||||||
Ending balance at Jun. 30, 2023 | 778 | 1 | 1,341 | 1,842 | (213) | 705 | 73 | (2,266) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock | (30) | |||||||
Beginning balance at Mar. 31, 2023 | 807 | 1 | 1,334 | 1,822 | (197) | 720 | 87 | (2,240) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 23 | 20 | 20 | 3 | ||||
Other comprehensive income (loss) | (20) | (16) | (16) | (4) | ||||
Stock-based compensation, net | 11 | 7 | 11 | 4 | ||||
Dividends to non-controlling interest | 13 | |||||||
Ending balance at Jun. 30, 2023 | 778 | $ 1 | $ 1,341 | $ 1,842 | $ (213) | $ 705 | $ 73 | $ (2,266) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock | $ (30) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation - Interim Financial Statements The condensed consolidated financial statements of Visteon Corporation and Subsidiaries (the "Company" or "Visteon") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission ("SEC") have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments, except as otherwise disclosed) that management believes are necessary for a fair presentation of the results of operations, financial position, stockholders' equity, and cash flows of the Company for the interim periods presented. Interim results are not necessarily indicative of full-year results. 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 June 30, 2023, as further described in Note 14, "Commitments and Contingencies", will be reflected in management's estimates in future periods. Segment: The Company’s reportable segment is Electronics. The Electronics segment provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advanced driver assistance systems ("ADAS"), displays, Android-based infotainment systems, and battery management systems. As the Company has one reportable segment, net sales, total assets, depreciation, amortization and capital expenditures are equal to consolidated results. 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 applies a historical loss rate based on historic write-offs by region to aging categories. The historical loss rate is 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 was $7 million and $5 million as of June 30, 2023 and December 31, 2022, respectively. |
Non-Consolidated Affiliates
Non-Consolidated Affiliates | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Non-Consolidated Affiliates | Non-Consolidated Affiliates Investments in Affiliates The Company's investments in non-consolidated equity method affiliates include the following: June 30, December 31, (In millions) 2023 2022 Yanfeng Visteon Investment Co., Ltd. ("YFVIC") (50%) $ 14 $ 25 Limited partnerships 14 13 Other 9 11 Total investments in non-consolidated affiliates $ 37 $ 49 Variable Interest Entities The Company evaluates whether joint ventures in which it has invested are Variable Interest Entities (“VIE”) at the start of each new venture and when a reconsideration event has occurred. The Company consolidates a VIE if it is determined to be the primary beneficiary of the VIE having 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. 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 Yangfeng Automotive Trim Systems Co. Ltd. ("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. The Company's investments in YFVIC consists of the following: June 30, December 31, (In millions) 2023 2022 Payables due to YFVIC $ 11 $ 38 Exposure to loss in YFVIC: Investment in YFVIC $ 14 $ 25 Receivables due from YFVIC 23 48 Maximum exposure to loss in YFVIC $ 37 $ 73 A $5 million dividend was declared by a non-consolidated affiliate during the second quarter 2023, recorded as a current asset. Equity Investments 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. As of June 30, 2023, the Company has contributed a total of approximately $11 million toward the aggregate investment commitments. These limited partnerships are classified as equity method investments. |
Restructuring Activities
Restructuring Activities | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring and Impairments 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, taking actions 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. During the six months ended June 30, 2023 and 2022, the Company recorded $2 million and $7 million of restructuring expense primarily related to employee severance, respectively. Current restructuring actions include the following: • During the six months ended June 30, 2023, the Company approved and recorded $2 million of restructuring expense primarily in America in order to improve efficiencies and rationalize the Company's footprint. As of June 30, 2023, $2 million remains accrued related to this action. • During 2022, the Company approved a restructuring plan, primarily impacting Europe, in order to improve efficiencies and rationalize the Company's footprint, including liquidation of operations in Russia. As of June 30, 2023, $1 million remains accrued related to this action. • During 2021 the Company approved various restructuring programs impacting engineering, administrative, and manufacturing functions to improve efficiency and rationalize the Company’s footprint. As of June 30, 2023, $1 million remains accrued related to these programs. • During 2020 the Company approved various restructuring programs impacting engineering, administrative and manufacturing functions to improve efficiency and rationalize the Company’s footprint. As of June 30, 2023, $2 million remains accrued related to these programs. • During prior periods the Company approved various restructuring programs to improve efficiencies which do not relate to the programs described above. As of June 30, 2023, $2 million remains accrued related to these previously announced actions. • As of June 30, 2023, the Company retained restructuring reserves as part of the Company's divestiture of the majority of its global Interiors business (the "Interiors Divestiture") of $1 million associated with completed programs for the fundamental reorganization of operations at facilities in Brazil and France. Restructuring Reserves The Company’s restructuring reserves and related activity are summarized below. (In millions) December 31, 2022 $ 11 Change in estimate 1 Payments (3) March 31, 2023 $ 9 Expense 2 Change in estimate (1) Payments (1) June 30, 2023 $ 9 Impairments The Company evaluates its long-lived assets for impairment whenever events or circumstances indicate the value of these long-lived asset groups are not recoverable. During the six months ended June 30, 2022, due to the geopolitical situation in Eastern Europe, the Company elected to close the Russian facility resulting in a non-cash impairment charge of $4 million to fully impair property and equipment and reduce inventory to its net realizable value. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following components: June 30, December 31, (In millions) 2023 2022 Raw materials $ 257 $ 291 Work-in-process 35 26 Finished products 37 31 $ 329 $ 348 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets, net are comprised of the following: June 30, 2023 December 31, 2022 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Definite-Lived: Developed technology 10 $ 40 $ (39) $ 1 $ 40 $ (39) $ 1 Customer related 10 85 (79) 6 88 (77) 11 Capitalized software development 5 50 (19) 31 50 (16) 34 Other 32 17 (11) 6 17 (9) 8 Subtotal 192 (148) 44 195 (141) 54 Indefinite-Lived: Goodwill 44 — 44 45 — 45 Total $ 236 $ (148) $ 88 $ 240 $ (141) $ 99 Capitalized software development consists of software development costs intended for integration into customer products. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other current assets are comprised of the following components: June 30, December 31, (In millions) 2023 2022 Recoverable taxes $ 48 $ 55 Contractually reimbursable engineering costs 32 35 Joint venture receivables 27 49 Prepaid assets and deposits 20 18 China bank notes — 6 Other 4 4 $ 131 $ 167 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 $158 million and $70 million of China bank notes during the six months ended June 30, 2023 and 2022, respectively. Remaining amounts outstanding at third-party institutions related to sold bank notes will mature by December 31, 2023. Other non-current assets are comprised of the following components: June 30, December 31, (In millions) 2023 2022 Deferred tax assets $ 42 $ 42 Contractually reimbursable engineering costs 25 25 Recoverable taxes 11 11 Pension assets 5 4 Derivative financial instruments 3 2 Other 24 20 $ 110 $ 104 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 $17 million during the remainder of 2023, $28 million in 2024, $10 million in 2025, $1 million in 2026, and $1 million in 2027 and beyond. |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities are summarized as follows: June 30, December 31, (In millions) 2023 2022 Deferred income $ 56 $ 55 Product warranty and recall accruals 44 31 Non-income taxes payable 30 35 Royalty reserves 15 14 Dividends payable 14 1 Joint venture payable 12 39 Income taxes payable 9 22 Restructuring reserves 6 6 Other 36 43 $ 222 $ 246 Other non-current liabilities are summarized as follows: June 30, December 31, (In millions) 2023 2022 Product warranty and recall accruals $ 25 $ 20 Deferred income 12 14 Income tax reserves 10 7 Restructuring reserves 3 5 Derivative financial instruments 3 2 Other 20 16 $ 73 $ 64 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt consists of the following: June 30, December 31, (In millions) 2023 2022 Short-Term Debt: Current Portion of long-term debt $ 18 $ 13 Short-term borrowings 3 — $ 21 $ 13 Long-Term Debt: Term debt facility, net $ 327 $ 336 As of December 31, 2021, the Company's credit agreement ("Credit Agreement") included a $350 million Term Facility maturing March 24, 2024 and a $400 million Revolving Credit Facility. On July 19, 2022, the Company entered into a new amendment to the Credit Agreement to, among other things, extend the maturity dates of both facilities. The amended Revolving Credit Facility and Term Facility mature on July 19, 2027. The amendment changed the method the Term Loan and Revolving Credit Facility accrue interest from a LIBOR-based rate to a Secured Overnight Financing Rate ("SOFR") based rate. On June 28, 2023, the Company amended the existing Credit Agreement to, among other things, amend certain affirmative and negative covenants. Short-Term Debt Terms of the amended credit facility require a quarterly principal payment equal to 1.25% of the original term debt balance. The first required payment was paid during the second quarter of 2023. As of June 30, 2023, the Company has $3 million in other short-term borrowing, primarily at the Company's subsidiaries. The Company's subsidiaries have access to $130 million of capacity under short-term credit facilities. Long-Term Debt The Company has no outstanding borrowings on the Revolving Credit Facility as of June 30, 2023. Interest on the Term Facility loans a nd Revolving Credit Facility accrue interest at a rate equal to a SOFR-based rate plus an applicable margin of between 1.00% and 1.75%, as determined by the Company's total gross leverage ratio. The Company can benefit from a 5 basis point decrease to the applicable margin due to a sustainability-linked pricing provision based on the Company's annual performance on reducing GHG emissions. 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. 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 principle 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 $2 million of outstanding letters of credit issued under this facility secured by restricted cash, as of June 30, 2023 and December 31, 2022. Additionally, the Company had $2 million and $3 million of locally issued bank guarantees and letters of credit as of June 30, 2023 and December 31, 2022, respectively, to support various tax appeals, customs arrangements and other obligations at its local affiliates. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company's net periodic benefit costs for all defined benefit plans for the three month periods ended June 30, 2023 and 2022 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2023 2022 2023 2022 Costs Recognized in Income: Pension service (cost): Service cost $ — $ — $ (1) $ (1) Pension financing benefits (cost): Interest cost $ (8) $ (5) $ (2) $ (1) Expected return on plan assets 10 10 2 2 Amortization of losses and other — — — (1) Total pension financing benefits: 2 5 — — Net pension benefit (cost) $ 2 $ 5 $ (1) $ (1) The Company's net periodic benefit costs for all defined benefit plans for the six month periods ended June 30, 2023 and 2022 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2023 2022 2023 2022 Costs Recognized in Income: Pension service (cost): Service cost $ — $ — $ (1) $ (1) Pension financing benefits (costs): Interest cost $ (16) $ (10) $ (4) $ (3) Expected return on plan assets 20 20 4 4 Amortization of losses and other 1 — — (1) Total pension financing benefits: 5 10 — — Net pension benefit (cost) $ 5 $ 10 $ (1) $ (1) Pension financing benefits are classified as Other income (expense), net on the Company's condensed consolidated statements of comprehensive income. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Stockholders' Equity and Non-co
Stockholders' Equity and Non-controlling Interests | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity and Non-controlling Interests | Stockholders’ Equity and Non-controlling Interests Non-Controlling Interests The Company's non-controlling interests are as follows: June 30, December 31, (In millions) 2023 2022 Shanghai Visteon Automotive Electronics, Co., Ltd. $ 47 $ 45 Yanfeng Visteon Automotive Electronics Co., Ltd. 10 37 Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. 14 15 Other 2 2 $ 73 $ 99 Accumulated Other Comprehensive Income (Loss) Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Changes in AOCI: Beginning balance $ (197) $ (225) $ (213) $ (229) Other comprehensive income (loss) before reclassification, net of tax (19) (41) (4) (37) Amounts reclassified from AOCI 3 1 4 1 Ending balance $ (213) $ (265) $ (213) $ (265) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (189) $ (156) $ (210) $ (149) Other comprehensive income (loss) before reclassification, net of tax (a) (19) (50) 2 (57) Ending balance (208) (206) (208) (206) Net investment hedge Beginning balance 11 10 12 4 Other comprehensive income (loss) before reclassification, net of tax (a) (2) 7 (3) 15 Amounts reclassified from AOCI — 1 — (1) Ending balance 9 18 9 18 Benefit plans Beginning balance (26) (80) (25) (81) Other comprehensive income (loss) before reclassification, net of tax (b) — 1 — 1 Amounts reclassified from AOCI — — (1) 1 Ending balance (26) (79) (26) (79) Unrealized hedging gain (loss) Beginning balance 7 1 10 (3) Other comprehensive income (loss) before reclassification, net of tax (c) 2 1 (3) 4 Amounts reclassified from AOCI 3 — 5 1 Ending balance 12 2 12 2 Total AOCI $ (213) $ (265) $ (213) $ (265) (a) There were no income tax effects for either period due to the valuation allowance. (b) Net tax expense was less than $1 million related to benefit plans for the three and six months ended June 30, 2023 and 2022. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to Visteon by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding. Performance based share units are considered contingently issuable shares and are included in the computation of diluted earnings per share based on the number of shares that would be issuable if the reporting date were the end of the contingency period and if the result would be dilutive. The table below provides details underlying the calculations of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended (In millions, except per share amounts) 2023 2022 2023 2022 Numerator: Net income (loss) attributable to Visteon $ 20 $ 24 $ 54 $ 46 Denominator: Average common stock outstanding - basic 28.3 28.1 28.3 28.1 Dilutive effect of performance based share units and other 0.4 0.3 0.4 0.4 Diluted shares 28.7 28.4 28.7 28.5 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ 0.71 $ 0.85 $ 1.91 $ 1.64 Diluted earnings (loss) per share attributable to Visteon: $ 0.70 $ 0.85 $ 1.88 $ 1.61 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments Fair Value Measurements 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. Items Measured at Fair Value on a Recurring Basis 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 use of derivative financial instruments creates exposure to credit loss in the event of nonperformance by the counterparty to the derivative financial instruments. The Company limits this exposure by entering into agreements including master netting arrangements directly with a variety of major highly rated financial institutions 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. There is no cash collateral on any of these derivatives. 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. 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 swaps are designated as net investment hedges and the Company has elected to assess hedge effectiveness under the spot method. Accordingly, changes in the fair value of the swaps are recorded as a cumulative translation adjustment in AOCI in the Consolidated Balance Sheet. During 2022, the Company terminated existing cross currency swaps and received $9 million upon settlement. Subsequently, the Company executed new cross-currency swap transactions. As of June 30, 2023, the Company had cross-currency swaps with aggregate notional amounts of $200 million intended to mitigate the variability of U.S. dollar value investment in certain of its non-U.S. entities. These swaps are designated as net investment hedges. There was no ineffectiveness associated with such derivatives as of June 30, 2023, and the fair value of these derivatives is a non-current liability of $12 million. As of June 30, 2023, a gain of approximately $3 million is expected to be reclassified out of accumulated other comprehensive income into earnings within the next 12 months. As of December 31, 2022, the fair value of these derivatives is a non-current liability of $8 million. Interest Rate Swaps: The Company utilizes interest rate swap instruments to manage its exposure and to mitigate the impact of interest rate variability. The swaps are designated as cash flow hedges, accordingly, the effective portion of the changes in fair value is recognized in accumulated other comprehensive income. Subsequently, the accumulated gains and losses recorded in equity are reclassified to income in the period during which the hedged exposure impacts earnings. During 2022, the Company terminated existing interest rate swaps and received less than $1 million upon settlement. Subsequently, the Company executed new interest rate swap instruments. As of June 30, 2023, the Company had interest rate swaps with aggregate notional amounts of $250 million. The fair value of these derivatives is a non-current asset of $12 million as of June 30, 2023. As of June 30, 2023, a loss of approximately $6 million is expected to be reclassified out of accumulated other comprehensive income into earnings within the next twelve months. As of December 31, 2022, the fair value of these derivatives is an non-current asset of $10 million. Financial Statement Presentation Gains and losses on derivative financial instruments for the three and six months ended June 30, 2023 and 2022 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in (Income) Loss (In millions) 2023 2022 2023 2022 2023 2022 Three months ended June 30, Foreign currency risk - Cost of sales: Foreign currency derivative $ — $ — $ — $ — $ — $ — Interest rate risk - Interest expense, net: Interest rate swaps 2 1 (3) — — — Net investment hedges (2) 7 — (1) — — $ — $ 8 $ (3) $ (1) $ — $ — Six months ended June 30, Foreign currency risk - Cost of sales: Foreign currency derivative $ — $ — $ — $ — $ — $ 3 Interest rate risk - Interest expense, net: Interest rate swaps (3) 4 (5) (1) — — Net investment hedges (3) 15 — 1 — — $ (6) $ 19 $ (5) $ — $ — $ 3 Items Not Carried at Fair Value The Company's fair value of debt was $337 million and $336 million as of June 30, 2023 and December 31, 2022, respectively. Fair value estimates were based on the current rates offered to the Company for debt of the same remaining maturities. Accordingly, the Company's debt fair value disclosures are classified as Level 2 in the fair value hierarchy. Concentrations of Credit Risk Financial instruments including cash equivalents, derivative contracts, and accounts receivable, expose the Company to counterparty 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 credit rating requirements. The Company’s counterparties for derivative contracts are substantial investment and commercial banks with significant experience using such derivatives. The Company manages its credit risk pursuant to written policies that specify minimum counterparty credit profile and by limiting the concentration of credit exposure amongst its multiple counterparties. The Company's credit risk with any single customer does not exceed ten percent of total accounts receivable except for Ford and GM and their affiliates. Ford represents 18% and 16% of the Company's balance as of June 30, 2023 and December 31, 2022, respectively. GM represents 13% and 9% of the Company's balance as of June 30, 2023 and December 31, 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
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 and also provided that the Company would negotiate in good faith with the Township if the property tax payments were inadequate to permit the Township to meet its payment obligations with respect to the bonds. On December 9, 2019, the Township commenced litigation against the Company in Michigan’s Wayne County Circuit Court. On June 27, 2023, Visteon and the Township entered into a Settlement and Mutual Release Agreement pursuant to which Visteon, without admitting wrongdoing, will pay the Township $12 million. Payment will be made in two installments on July 3, 2023 and July 1, 2024, classified as current and non-current liabilities, respectively. The litigation commenced in Michigan’s Wayne County Circuit Court and has been dismissed with prejudice. In November 2013, the Company and Halla Visteon Climate Control Corporation (“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 $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 the Company 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 its business, operating results and financial condition. The Company cannot predict when OFAC will conclude its own review of 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. The Company maintained accruals of $9 million for claims aggregating $55 million in Brazil as of June 30, 2023. 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. The adverse impacts of the COVID-19 pandemic led to a significant reduction in vehicle production 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. Because semiconductor suppliers have been unable to rapidly reallocate production to serve the automotive industry, the surge in demand has led to a worldwide semiconductor supply shortage. The Company's semiconductor suppliers, along with most automotive component supply companies that use semiconductors, have been unable to fully meet the vehicle production demands of our customers due to events which are outside the Company's control, including but not limited to, the COVID-19 pandemic, the global semiconductor shortage, a fire at a semiconductor fabrication facility in Japan, significant weather events impacting semiconductor supplier facilities in the southern United States, and other extraordinary events. The Company is working closely with suppliers and customers to attempt to minimize potential adverse impacts of these events. Certain customers have communicated that they expect the Company to absorb some of the financial impact of their reduced production and are reserving their rights to claim damages arising from supply shortages, however, the Company believes it has a number of legal defenses to such claims and intends to defend any such claims vigorously. The Company has also notified semiconductor suppliers that it will seek compensation from them for failure to deliver sufficient quantities. The Company is not able to estimate the possible loss or range of loss in connection with this matter at this time. 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. Guarantees and Commitments As part of 2015 divestitures involving the Company's former climate and interiors businesses, the Company continues to provide lease guarantees to divested Climate and Interiors entities. As of June 30, 2023, the Company has $2 million and $2 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. The guarantees will generally cease upon expiration of current lease agreement which expire in 2026 and 2024 for the Climate and Interiors entities, respectively. 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. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued or beyond what the Company may recover from its suppliers. The following table provides a rollforward of changes in the product warranty and recall claims liability: Six Months Ended June 30, (In millions) 2023 2022 Beginning balance $ 51 $ 50 Provisions 25 7 Changes in estimates — 3 Currency/other — (3) Settlements (7) (10) Ending balance $ 69 $ 47 The Company has recorded $15 million of expense during the second quarter of 2023 related to a recall campaign for certain vehicles involving instrument panel clusters manufactured by the Company. The cause for the instrument panel cluster failures was resolved by the Company in April 2023 and the recall relates to certain parts shipped prior to that time. The amount recorded represents the Company’s best estimate and the ultimate resolution of these matters could have a further negative effect on the Company's financial position, results of operations, and cash flow. 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; customs and international trade regulations; product recalls; product liability claims; 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 paragraphs where losses are deemed probable and reasonably estimable. It is possible, however, that some of the matters discussed in the foregoing paragraphs 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 June 30, 2023 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. |
Revenue Recognition and Geograp
Revenue Recognition and Geographical Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information and Revenue Recognition | Financial Information by Geographic Region Disaggregated net sales by geographical market and product lines is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Geographical Markets Europe $ 330 $ 311 $ 676 $ 594 Americas 292 281 568 520 China Domestic 152 109 280 251 China Export 88 46 171 94 Other Asia-Pacific 161 130 338 264 Eliminations (40) (29) (83) (57) $ 983 $ 848 $ 1,950 $ 1,666 Three Months Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Product Lines Instrument clusters $ 477 $ 415 $ 951 $ 804 Infotainment 126 106 261 216 Cockpit domain controller 138 101 251 183 Information displays 90 121 187 254 Body and electrification electronics 72 40 143 76 Other 80 65 157 133 $ 983 $ 848 $ 1,950 $ 1,666 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation - Interim Financial Statements | Basis of Presentation - Interim Financial Statements The condensed consolidated financial statements of Visteon Corporation and Subsidiaries (the "Company" or "Visteon") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission ("SEC") have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments, except as otherwise disclosed) that management believes are necessary for a fair presentation of the results of operations, financial position, stockholders' equity, and cash flows of the Company for the interim periods presented. Interim results are not necessarily indicative of full-year results. |
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 June 30, 2023, as further described in Note 14, "Commitments and Contingencies", will be reflected in management's estimates in future periods. Segment: The Company’s reportable segment is Electronics. The Electronics segment provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advanced driver assistance systems ("ADAS"), displays, Android-based infotainment systems, and battery management systems. As the Company has one reportable segment, net sales, total assets, depreciation, amortization and capital expenditures are equal to consolidated results. |
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 applies a historical loss rate based on historic write-offs by region to aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses, as necessary. The Company may also record a specific reserve |
Recently Adopted Accounting Pronouncements |
Non-Consolidated Affiliates (Ta
Non-Consolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Investment in Non-consolidated Affiliates | The Company's investments in non-consolidated equity method affiliates include the following: June 30, December 31, (In millions) 2023 2022 Yanfeng Visteon Investment Co., Ltd. ("YFVIC") (50%) $ 14 $ 25 Limited partnerships 14 13 Other 9 11 Total investments in non-consolidated affiliates $ 37 $ 49 The Company's investments in YFVIC consists of the following: June 30, December 31, (In millions) 2023 2022 Payables due to YFVIC $ 11 $ 38 Exposure to loss in YFVIC: Investment in YFVIC $ 14 $ 25 Receivables due from YFVIC 23 48 Maximum exposure to loss in YFVIC $ 37 $ 73 A $5 million dividend was declared by a non-consolidated affiliate during the second quarter 2023, recorded as a current asset. |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The Company’s restructuring reserves and related activity are summarized below. (In millions) December 31, 2022 $ 11 Change in estimate 1 Payments (3) March 31, 2023 $ 9 Expense 2 Change in estimate (1) Payments (1) June 30, 2023 $ 9 Impairments The Company evaluates its long-lived assets for impairment whenever events or circumstances indicate the value of these long-lived asset groups are not recoverable. During the six months ended June 30, 2022, due to the geopolitical situation in Eastern Europe, the Company elected to close the Russian facility resulting in a non-cash impairment charge of $4 million to fully impair property and equipment and reduce inventory to its net realizable value. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories, net consist of the following components: June 30, December 31, (In millions) 2023 2022 Raw materials $ 257 $ 291 Work-in-process 35 26 Finished products 37 31 $ 329 $ 348 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Intangible assets, net are comprised of the following: June 30, 2023 December 31, 2022 (In millions) Estimated Weighted Average Useful Life (years) Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Definite-Lived: Developed technology 10 $ 40 $ (39) $ 1 $ 40 $ (39) $ 1 Customer related 10 85 (79) 6 88 (77) 11 Capitalized software development 5 50 (19) 31 50 (16) 34 Other 32 17 (11) 6 17 (9) 8 Subtotal 192 (148) 44 195 (141) 54 Indefinite-Lived: Goodwill 44 — 44 45 — 45 Total $ 236 $ (148) $ 88 $ 240 $ (141) $ 99 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets are comprised of the following components: June 30, December 31, (In millions) 2023 2022 Recoverable taxes $ 48 $ 55 Contractually reimbursable engineering costs 32 35 Joint venture receivables 27 49 Prepaid assets and deposits 20 18 China bank notes — 6 Other 4 4 $ 131 $ 167 |
Schedule of Other Noncurrent Assets | Other non-current assets are comprised of the following components: June 30, December 31, (In millions) 2023 2022 Deferred tax assets $ 42 $ 42 Contractually reimbursable engineering costs 25 25 Recoverable taxes 11 11 Pension assets 5 4 Derivative financial instruments 3 2 Other 24 20 $ 110 $ 104 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are summarized as follows: June 30, December 31, (In millions) 2023 2022 Deferred income $ 56 $ 55 Product warranty and recall accruals 44 31 Non-income taxes payable 30 35 Royalty reserves 15 14 Dividends payable 14 1 Joint venture payable 12 39 Income taxes payable 9 22 Restructuring reserves 6 6 Other 36 43 $ 222 $ 246 |
Schedule of Other Noncurrent Liabilities | Other non-current liabilities are summarized as follows: June 30, December 31, (In millions) 2023 2022 Product warranty and recall accruals $ 25 $ 20 Deferred income 12 14 Income tax reserves 10 7 Restructuring reserves 3 5 Derivative financial instruments 3 2 Other 20 16 $ 73 $ 64 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: June 30, December 31, (In millions) 2023 2022 Short-Term Debt: Current Portion of long-term debt $ 18 $ 13 Short-term borrowings 3 — $ 21 $ 13 Long-Term Debt: Term debt facility, net $ 327 $ 336 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Retirement Plan expenses | The Company's net periodic benefit costs for all defined benefit plans for the three month periods ended June 30, 2023 and 2022 were as follows: U.S. Plans Non-U.S. Plans (In millions) 2023 2022 2023 2022 Costs Recognized in Income: Pension service (cost): Service cost $ — $ — $ (1) $ (1) Pension financing benefits (cost): Interest cost $ (8) $ (5) $ (2) $ (1) Expected return on plan assets 10 10 2 2 Amortization of losses and other — — — (1) Total pension financing benefits: 2 5 — — Net pension benefit (cost) $ 2 $ 5 $ (1) $ (1) |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Non-controlling Interests | The Company's non-controlling interests are as follows: June 30, December 31, (In millions) 2023 2022 Shanghai Visteon Automotive Electronics, Co., Ltd. $ 47 $ 45 Yanfeng Visteon Automotive Electronics Co., Ltd. 10 37 Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. 14 15 Other 2 2 $ 73 $ 99 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive income (loss) (“AOCI”) and reclassifications out of AOCI by component include: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Changes in AOCI: Beginning balance $ (197) $ (225) $ (213) $ (229) Other comprehensive income (loss) before reclassification, net of tax (19) (41) (4) (37) Amounts reclassified from AOCI 3 1 4 1 Ending balance $ (213) $ (265) $ (213) $ (265) Changes in AOCI by Component: Foreign currency translation adjustments Beginning balance $ (189) $ (156) $ (210) $ (149) Other comprehensive income (loss) before reclassification, net of tax (a) (19) (50) 2 (57) Ending balance (208) (206) (208) (206) Net investment hedge Beginning balance 11 10 12 4 Other comprehensive income (loss) before reclassification, net of tax (a) (2) 7 (3) 15 Amounts reclassified from AOCI — 1 — (1) Ending balance 9 18 9 18 Benefit plans Beginning balance (26) (80) (25) (81) Other comprehensive income (loss) before reclassification, net of tax (b) — 1 — 1 Amounts reclassified from AOCI — — (1) 1 Ending balance (26) (79) (26) (79) Unrealized hedging gain (loss) Beginning balance 7 1 10 (3) Other comprehensive income (loss) before reclassification, net of tax (c) 2 1 (3) 4 Amounts reclassified from AOCI 3 — 5 1 Ending balance 12 2 12 2 Total AOCI $ (213) $ (265) $ (213) $ (265) (a) There were no income tax effects for either period due to the valuation allowance. (b) Net tax expense was less than $1 million related to benefit plans for the three and six months ended June 30, 2023 and 2022. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below provides details underlying the calculations of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended (In millions, except per share amounts) 2023 2022 2023 2022 Numerator: Net income (loss) attributable to Visteon $ 20 $ 24 $ 54 $ 46 Denominator: Average common stock outstanding - basic 28.3 28.1 28.3 28.1 Dilutive effect of performance based share units and other 0.4 0.3 0.4 0.4 Diluted shares 28.7 28.4 28.7 28.5 Basic and Diluted Per Share Data: Basic earnings (loss) per share attributable to Visteon $ 0.71 $ 0.85 $ 1.91 $ 1.64 Diluted earnings (loss) per share attributable to Visteon: $ 0.70 $ 0.85 $ 1.88 $ 1.61 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Gains and losses on derivative financial instruments for the three and six months ended June 30, 2023 and 2022 are as follows: Recorded Income (Loss) into AOCI, net of tax Reclassified from AOCI into Income (Loss) Recorded in (Income) Loss (In millions) 2023 2022 2023 2022 2023 2022 Three months ended June 30, Foreign currency risk - Cost of sales: Foreign currency derivative $ — $ — $ — $ — $ — $ — Interest rate risk - Interest expense, net: Interest rate swaps 2 1 (3) — — — Net investment hedges (2) 7 — (1) — — $ — $ 8 $ (3) $ (1) $ — $ — Six months ended June 30, Foreign currency risk - Cost of sales: Foreign currency derivative $ — $ — $ — $ — $ — $ 3 Interest rate risk - Interest expense, net: Interest rate swaps (3) 4 (5) (1) — — Net investment hedges (3) 15 — 1 — — $ (6) $ 19 $ (5) $ — $ — $ 3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table provides a rollforward of changes in the product warranty and recall claims liability: Six Months Ended June 30, (In millions) 2023 2022 Beginning balance $ 51 $ 50 Provisions 25 7 Changes in estimates — 3 Currency/other — (3) Settlements (7) (10) Ending balance $ 69 $ 47 The Company has recorded $15 million of expense during the second quarter of 2023 related to a recall campaign for certain vehicles involving instrument panel clusters manufactured by the Company. The cause for the instrument panel cluster failures was resolved by the Company in April 2023 and the recall relates to certain parts shipped prior to that time. The amount recorded represents the Company’s best estimate and the ultimate resolution of these matters could have a further negative effect on the Company's financial position, results of operations, and cash flow. |
Revenue Recognition and Geogr_2
Revenue Recognition and Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Disaggregated net sales by geographical market and product lines is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Geographical Markets Europe $ 330 $ 311 $ 676 $ 594 Americas 292 281 568 520 China Domestic 152 109 280 251 China Export 88 46 171 94 Other Asia-Pacific 161 130 338 264 Eliminations (40) (29) (83) (57) $ 983 $ 848 $ 1,950 $ 1,666 |
Schedule of Revenue from External Customers by Products and Services | Three Months Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Product Lines Instrument clusters $ 477 $ 415 $ 951 $ 804 Infotainment 126 106 261 216 Cockpit domain controller 138 101 251 183 Information displays 90 121 187 254 Body and electrification electronics 72 40 143 76 Other 80 65 157 133 $ 983 $ 848 $ 1,950 $ 1,666 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for doubtful accounts | $ 7 | $ 5 |
Non-Consolidated Affiliates - N
Non-Consolidated Affiliates - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2019 |
YFVIC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 50% | |
Fair Value Measured at Net Asset Value Per Share | ||
Related Party Transaction [Line Items] | ||
Investments | $ 11 | $ 15 |
Non-Consolidated Affiliates - I
Non-Consolidated Affiliates - Investments in Non-Consolidated Equity Method Affiliates (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Investment in YFVIC | $ 37 | $ 49 |
YFVIC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 50% | |
Yanfeng Visteon Investment Co., Ltd. ("YFVIC") | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | $ 14 | 25 |
Other | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | 9 | 11 |
Limited Partnerships | ||
Related Party Transaction [Line Items] | ||
Investment in YFVIC | $ 14 | $ 13 |
Non-Consolidated Affiliates - S
Non-Consolidated Affiliates - Summary of Investments in YFVIC (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Exposure to loss in YFVIC: | ||
Investment in YFVIC | $ 37 | $ 49 |
Maximum exposure to loss in YFVIC | 37 | 73 |
Payments to Acquire Interest in Joint Venture | 11 | 38 |
Receivables due from YFVIC | ||
Exposure to loss in YFVIC: | ||
Other Receivable, after Allowance for Credit Loss, Noncurrent | 23 | 48 |
Yanfeng Visteon Investment Co., Ltd. ("YFVIC") | ||
Exposure to loss in YFVIC: | ||
Investment in YFVIC | $ 14 | $ 25 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve, current | $ 6 | $ 6 | $ 6 | ||
Restructuring Reserve | 9 | 9 | $ 9 | $ 11 | |
Asset Impairment Charges | 0 | $ 4 | |||
Restructuring Charges | (2) | ||||
2018 South America Legacy | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 2 | 2 | |||
2016 Other Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 1 | 1 | |||
Russia Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 1 | 1 | |||
Brazil Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 1 | 1 | |||
Eng and Admin Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 2 | 2 | |||
PPE Impairment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset Impairment Charges | 4 | ||||
2023 Rest Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 2 | 2 | |||
Restructuring Charges | $ (2) |
Restructuring Activities - Summ
Restructuring Activities - Summary of Restructuring Reserves and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 9 | $ 11 | $ 11 | |
Expense | 2 | |||
Change in estimate | 1 | 1 | 2 | $ (7) |
Payments | (1) | (3) | ||
Restructuring reserve, ending balance | $ 9 | $ 9 | $ 9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 257 | $ 291 |
Work-in-process | 35 | 26 |
Finished products | 37 | 31 |
Inventories, net | $ 329 | $ 348 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 192 | $ 195 |
Accumulated Amortization | (148) | (141) |
Net Intangibles | 44 | 54 |
Goodwill and indefinite-lived intangible assets [Abstract] | ||
Goodwill, gross | 44 | 45 |
Goodwill net | 44 | 45 |
Total goodwill and intangible assets, gross | 236 | 240 |
Total goodwill and intangible assets, net | $ 88 | 99 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 10 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 40 | 40 |
Accumulated Amortization | (39) | (39) |
Net Intangibles | $ 1 | 1 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 10 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 85 | 88 |
Accumulated Amortization | (79) | (77) |
Net Intangibles | $ 6 | 11 |
Capitalized software development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 5 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 50 | 50 |
Accumulated Amortization | (19) | (16) |
Net Intangibles | $ 31 | 34 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Weighted Average Useful Life (years) | 32 years | |
Definite-Lived Intangible Assets [Abstract] | ||
Gross Intangibles | $ 17 | 17 |
Accumulated Amortization | (11) | (9) |
Net Intangibles | $ 6 | $ 8 |
Other Assets - Current Assets (
Other Assets - Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Recoverable taxes | $ 48 | $ 55 |
Contractually reimbursable engineering costs | 32 | 35 |
Joint venture receivables | (27) | (49) |
Prepaid assets and deposits | 20 | 18 |
China bank notes | 0 | 6 |
Other | 4 | 4 |
Other current assets | $ 131 | $ 167 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Other Assets [Abstract] | ||
Amount of China bank notes sold | $ 158 | $ 70 |
Reimbursement for engineering costs in current year | 17 | |
Reimbursement for engineering costs in following year | 28 | |
Reimbursement for engineering costs expected in year two | 10 | |
Reimbursement for engineering costs expected in year three | 1 | |
Reimbursement for engineering costs expected in year four and beyond | $ 1 |
Other Assets - Noncurrent Asset
Other Assets - Noncurrent Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Deferred tax assets | $ 42 | $ 42 |
Contractually reimbursable engineering costs | 25 | 25 |
Recoverable taxes | 11 | 11 |
Assets for Plan Benefits, Defined Benefit Plan | 5 | 4 |
Derivative financial instruments | 3 | 2 |
Other | 24 | 20 |
Other noncurrent assets | $ 110 | $ 104 |
Other Liabilities - Other Curre
Other Liabilities - Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Product warranty and recall accruals | $ 44 | $ 31 |
Deferred income | 56 | 55 |
Non-income taxes payable | 30 | 35 |
Restructuring reserves | 6 | 6 |
Royalty reserves | 15 | 14 |
Dividends Payable | 14 | 1 |
Joint venture payable | 12 | 39 |
Income taxes payable | 9 | 22 |
Other | 36 | 43 |
Total other current liabilities | $ 222 | $ 246 |
Other Liabilities - Other Noncu
Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Product warranty and recall accruals | $ 25 | $ 20 |
Deferred income | 12 | 14 |
Income tax reserves | 10 | 7 |
Restructuring reserves | 3 | 5 |
Derivative financial instruments | 3 | 2 |
Other | 20 | 16 |
Total other noncurrent liabilities | $ 73 | $ 64 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term borrowings | ||
Long-term debt | ||
Current Portion of long-term debt | $ 3 | $ 0 |
Long-Term Debt and Lease Obligation, Including Current Maturities | 18 | 13 |
Term Loan | ||
Long-term debt | ||
Term debt facility, net | $ 327 | $ 336 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity, revolving credit facility | $ 75 | ||
Maximum borrowing capacity, swing line advances | 20 | ||
Amended LOC agreement facility capacity | $ 5 | ||
Required collateral equal to the aggregate stated amount of the LOCs (percent) | 103% | ||
LOC collateral percentage for draws in non-U.S. currencies (percent) | 110% | ||
Restricted cash | $ 4 | $ 3 | |
Restricted cash | 4 | 3 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Face amount | $ 400 | ||
Restricted cash - Letter of credit related | |||
Debt Instrument [Line Items] | |||
Restricted cash | 2 | ||
Restricted cash | 2 | ||
Short-term borrowings | |||
Debt Instrument [Line Items] | |||
Current Portion of long-term debt | $ 3 | $ 0 | |
Maximum | |||
Debt Instrument [Line Items] | |||
Financial maintenance covenant | 3.50 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent) | 1% | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent) | 1.75% | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Face amount | $ 350 | ||
LOC Facility issued by local affiliates | |||
Debt Instrument [Line Items] | |||
Amount secured by cash collateral | $ 2 | ||
Affiliated Entity | |||
Debt Instrument [Line Items] | |||
Working capital facility availability | $ 130 |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign Plan | ||||
Pension service (cost): | ||||
Service cost | $ (1) | $ (1) | $ (1) | $ (1) |
Pension financing benefits (cost): | ||||
Interest cost | (2) | (1) | (4) | (3) |
Expected return on plan assets | 2 | 2 | 4 | 4 |
Amortization of losses and other | (1) | (1) | ||
Net pension benefit (cost) | (1) | (1) | (1) | (1) |
U.S. Plans | ||||
Pension service (cost): | ||||
Service cost | 0 | 0 | 0 | 0 |
Pension financing benefits (cost): | ||||
Interest cost | (8) | (5) | (16) | (10) |
Expected return on plan assets | 10 | 10 | 20 | 20 |
Amortization of losses and other | 1 | |||
Total pension financing benefits: | 2 | 5 | 5 | 10 |
Net pension benefit (cost) | $ 2 | $ 5 | $ 5 | $ 10 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Other income (expense), net | $ (10) | $ 5 | $ (7) | $ 10 |
Expected future employer contributions in remaining year | 5 | 5 | ||
Foreign Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cash contributions by employer | 3 | |||
Service cost | (1) | (1) | (1) | (1) |
Interest cost | (2) | (1) | (4) | (3) |
Expected return on plan assets | 2 | 2 | 4 | 4 |
Amortization of losses and other | (1) | (1) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (1) | (1) | (1) | (1) |
U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | (8) | (5) | (16) | (10) |
Expected return on plan assets | 10 | 10 | 20 | 20 |
Amortization of losses and other | 1 | |||
Total pension financing benefits: | 2 | 5 | 5 | 10 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 2 | $ 5 | $ 5 | $ 10 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Examination [Line Items] | ||||
Provision for income taxes | $ 13,000,000 | $ 7,000,000 | $ 27,000,000 | $ 15,000,000 |
Pretax losses from continuing operations | (36,000,000) | $ (30,000,000) | (88,000,000) | (61,000,000) |
Liability for uncertainty in income taxes, noncurrent | 10,000,000 | 10,000,000 | ||
Liability for uncertainty in income taxes, noncurrent | 10,000,000 | 10,000,000 | ||
Domestic Country And Foreign Country Witholding Taxes | ||||
Income Tax Examination [Line Items] | ||||
Liability for uncertainty in income taxes, noncurrent | 5,000,000 | 5,000,000 | ||
Liability for uncertainty in income taxes, noncurrent | $ 5,000,000 | 5,000,000 | ||
Jurisdictions where valuation allowances are maintained | ||||
Income Tax Examination [Line Items] | ||||
Pretax losses from continuing operations | $ (20,000,000) | $ (13,000,000) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Worldwide | |
Income Tax Contingency [Line Items] | |
Tax audit appeals and refund claims receivable | $ 7 |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-controlling Interests - Schedule of Non-controlling Interests (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 73 | $ 99 |
Shanghai Visteon Automotive Electronics, Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 47 | 45 |
Yanfeng Visteon Automotive Electronics Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 10 | 37 |
Changchun Visteon FAWAY Automotive Electronics, Co., Ltd. | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | 14 | 15 |
Other | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interests | $ 2 | $ 2 |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-controlling Interests - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | $ 675 | |||
Other comprehensive income (loss) before reclassification, net of tax | $ (19) | $ (41) | (4) | $ (37) |
Amounts reclassified from AOCI | 3 | 1 | 4 | 1 |
Accumulated other comprehensive income (loss), ending balance | 705 | 705 | ||
Income tax expense (benefit) | 1 | 1 | 1 | 1 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (197) | (225) | (213) | (229) |
Accumulated other comprehensive income (loss), ending balance | (213) | (265) | (213) | (265) |
Accumulated Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (189) | (156) | (210) | (149) |
Other comprehensive income (loss) before reclassification, net of tax | (19) | (50) | 2 | (57) |
Accumulated other comprehensive income (loss), ending balance | (208) | (206) | (208) | (206) |
Accumulated Translation Adjustment | Cross Currency Interest Rate Contract | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | 11 | 10 | 12 | 4 |
Other comprehensive income (loss) before reclassification, net of tax | (2) | 7 | (3) | 15 |
Amounts reclassified from AOCI | 0 | 1 | 0 | (1) |
Accumulated other comprehensive income (loss), ending balance | 9 | 18 | 9 | 18 |
Accumulated Defined Benefit Plans Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | (26) | (80) | (25) | (81) |
Other comprehensive income (loss) before reclassification, net of tax | 0 | 1 | 0 | 1 |
Amounts reclassified from AOCI | 0 | 0 | (1) | 1 |
Accumulated other comprehensive income (loss), ending balance | (26) | (79) | (26) | (79) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning balance | 7 | 1 | 10 | (3) |
Other comprehensive income (loss) before reclassification, net of tax | 2 | 1 | (3) | 4 |
Amounts reclassified from AOCI | 3 | 0 | 5 | 1 |
Accumulated other comprehensive income (loss), ending balance | $ 12 | $ 2 | $ 12 | $ 2 |
Stockholders' Equity and Non-_5
Stockholders' Equity and Non-controlling Interests - Stock Repurchase Program (Details) shares in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) shares | |
Equity, Class of Treasury Stock [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 300,000,000 |
Stock repurchased during period (in shares) | shares | 211,779 |
Treasury Stock, Value, Acquired, Cost Method | $ 141,660,000 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income (loss) attributable to Visteon | $ 20 | $ 24 | $ 46 | |
Denominator: | ||||
Average common stock outstanding - basic (in shares) | 28.3 | 28.1 | 28.3 | 28.1 |
Dilutive effect of performance based share units and other (in shares) | 0.4 | 0.3 | 0.4 | 0.4 |
Diluted shares (in shares) | 28.7 | 28.4 | 28.7 | 28.5 |
Basic earnings (loss) per share | ||||
Basic earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.71 | $ 0.85 | $ 1.91 | $ 1.64 |
Diluted earnings (loss) per share attributable to Visteon: | ||||
Diluted earnings (loss) per share attributable to Visteon Corporation (in dollars per share) | $ 0.70 | $ 0.85 | $ 1.88 | $ 1.61 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Debt instrument | $ 337 | $ 336 | |
Designated as Hedging Instrument | Liability | Currency Swap | |||
Derivative [Line Items] | |||
Derivative Asset | 12 | $ 8 | |
Derivative liability | 200 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative instruments, gain (loss) reclassification from accumulated OCI to income, estimated amount to be transferred | (6) | ||
Derivative Asset | 12 | ||
Derivative liability | $ 250 | ||
Credit Concentration Risk | Accounts Receivable | Ford And Affiliates | |||
Derivative [Line Items] | |||
Concentration risk, percentage | 16% | 18% | |
Credit Concentration Risk | Accounts Receivable | GM | |||
Derivative [Line Items] | |||
Concentration risk, percentage | 9% | 13% |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Financial Statement Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded Income (Loss) into AOCI, net of tax | $ 8 | $ (6) | $ 19 | |
Reclassified from AOCI into Income (Loss) | $ (3) | (1) | (5) | |
Recorded in (Income) Loss | 3 | |||
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded in (Income) Loss | 0 | 0 | 0 | 3 |
Designated as Hedging Instrument | Foreign Exchange Contract | Net Investment Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded Income (Loss) into AOCI, net of tax | (2) | 7 | (3) | 15 |
Reclassified from AOCI into Income (Loss) | (1) | 1 | ||
Recorded in (Income) Loss | 0 | 0 | 0 | 0 |
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded Income (Loss) into AOCI, net of tax | 2 | 1 | (3) | 4 |
Reclassified from AOCI into Income (Loss) | (3) | 0 | (5) | (1) |
Recorded in (Income) Loss | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||||||
Net sales | $ 12 | $ 983 | $ 848 | $ 1,950 | $ 1,666 | |
Maximum exposure to loss in YFVIC | 37 | 37 | $ 73 | |||
Climate Transaction | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee for divested entities lease payments | 2 | 2 | ||||
Interiors Divestiture | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee for divested entities lease payments | 2 | 2 | ||||
BRAZIL | Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | 9 | 9 | ||||
Maximum exposure to loss in YFVIC | $ 55 | $ 55 |
Commitments and Contingencies -
Commitments and Contingencies - Reconciliation of Changes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Product warranty accrual, beginning balance | $ 51 | $ 50 |
Provisions | 25 | 7 |
Changes in estimates | 3 | |
Currency/other | 0 | (3) |
Settlements | (7) | (10) |
Product warranty accrual, ending balance | $ 69 | $ 47 |
Revenue Recognition and Geogr_3
Revenue Recognition and Geographical Information - Sales and Assets by Geographic Region (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 12 | $ 983 | $ 848 | $ 1,950 | $ 1,666 |
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 330 | 311 | 676 | 594 | |
Americas | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 292 | 281 | 568 | 520 | |
China Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 152 | 109 | 280 | 251 | |
China Export | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 88 | 46 | 171 | 94 | |
Other Asia-Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 161 | 130 | 338 | 264 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (40) | $ (29) | $ (83) | $ (57) |
Revenue Recognition and Geogr_4
Revenue Recognition and Geographical Information - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 12 | $ 983 | $ 848 | $ 1,950 | $ 1,666 |
Instrument clusters | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 477 | 415 | 951 | 804 | |
Infotainment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 126 | 106 | 261 | 216 | |
Information displays | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 90 | 121 | 187 | 254 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 80 | 65 | 157 | 133 | |
Cockpit domain controller | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 138 | 101 | 251 | 183 | |
Body and electrification | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 72 | $ 40 | $ 143 | $ 76 |