Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Apr. 12, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | Affinia Group Intermediate Holdings Inc. | |
Entity Central Index Key | 1,328,655 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Public Float | $ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 899 | $ 970 | $ 910 |
Cost of sales | (684) | (726) | (687) |
Gross profit | 215 | 244 | 223 |
Selling, general and administrative expenses | (132) | (143) | (141) |
Operating profit | 83 | 101 | 82 |
Loss on extinguishment of debt | 0 | 0 | (15) |
Other income and expense, net | (7) | (7) | (3) |
Interest expense | (55) | (56) | (73) |
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | 21 | 38 | (9) |
Income tax provision | (20) | (8) | (14) |
Equity in loss, net of tax | (2) | ||
Net income (loss) from continuing operations | 1 | 30 | (25) |
(Loss) income from discontinued operations, net of tax | (73) | 51 | 32 |
Net (loss) income | (72) | $ 81 | $ 7 |
Less: net income attributable to noncontrolling interest, net of tax | 1 | ||
Net (loss) income attributable to the Company | $ (73) | $ 81 | $ 7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net (loss) income | $ (72) | $ 81 | $ 7 | |
Other comprehensive income (loss), net of tax: | ||||
Pension liability adjustment | (1) | 1 | 1 | |
Reclassification earnings | (2) | (2) | ||
Change in foreign currency translation adjustments | [1] | 7 | (28) | (19) |
Total other comprehensive income (loss) | 4 | (33) | (11) | |
Total comprehensive (loss) income | (68) | 48 | (4) | |
Interest Rate Swap [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Change in fair value | [2] | (4) | (8) | 9 |
Reclassification earnings | 2 | 2 | (2) | |
Derivative [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Change in fair value | (1) | 0 | 0 | |
Reclassification earnings | $ (1) | $ 0 | $ 0 | |
[1] | Net of $2 million tax benefit in 2015, $6 million tax expense in 2014 and $3 million tax expense in 2013. | |||
[2] | Net of $1 million tax benefit in 2015, $1 million tax benefit in 2014 and $4 million tax expense in 2013. |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Change in fair value of interest rate swaps, tax expense (benefit) | $ (1) | $ (1) | $ 4 |
Change in foreign currency translation adjustments, tax expense (benefit) | $ (2) | $ 6 | $ 3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 28 | $ 26 |
Restricted cash | 6 | 4 |
Trade accounts receivable, less allowances of $2 million for 2015 and $4 million for 2014 | 80 | 89 |
Inventories, net | 166 | 143 |
Current deferred taxes | 19 | |
Prepaid taxes | 7 | 18 |
Other current assets | 13 | 43 |
Current assets of discontinued operations | 199 | |
Total current assets | 300 | 541 |
Property, plant and equipment, net | 115 | 109 |
Goodwill | 3 | 3 |
Other intangible assets, net | 45 | 53 |
Deferred financing costs | 10 | 14 |
Deferred income taxes | 113 | 97 |
Investments and other assets | 2 | 2 |
Total assets | 588 | 819 |
Current liabilities: | ||
Accounts payable | 86 | 99 |
Notes payable | 30 | 19 |
Current maturities of long-term debt | 148 | |
Other accrued expenses | 44 | 43 |
Accrued payroll and employee benefits | 8 | 16 |
Current liabilities of discontinued operations | 6 | 58 |
Total current liabilities | 322 | 235 |
Long-term debt | 562 | 792 |
Deferred employee benefits and other noncurrent liabilities | 12 | 13 |
Total liabilities | $ 896 | $ 1,040 |
Contingencies and commitments | ||
Shareholder’s equity (deficit): | ||
Additional paid-in capital | $ 458 | $ 455 |
Accumulated deficit | (717) | (624) |
Accumulated other comprehensive loss | (49) | (53) |
Total shareholder’s deficit of the Company | (308) | (222) |
Noncontrolling interest in consolidated subsidiaries | 1 | |
Total shareholder’s deficit | (308) | (221) |
Total liabilities and shareholder’s deficit | $ 588 | $ 819 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 2 | $ 4 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity (Deficit) - USD ($) $ in Millions | Total | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total Shareholder's Equity (Deficit) of the Company [Member] | Noncontrolling Interest [Member] | |
Beginning, balance at Dec. 31, 2012 | $ 153 | $ 455 | $ (294) | $ (9) | $ 152 | $ 1 | |
Stock-based compensation | 1 | 1 | 1 | ||||
Net income (loss) | 7 | 7 | 7 | ||||
Noncontrolling interest decrease due to distribution of BPI | (352) | (352) | (352) | ||||
Distribution of BPI | 1 | 1 | 1 | ||||
Pension liability adjustment | 1 | ||||||
Change in market value of interest rate swaps | 7 | 7 | 7 | ||||
Currency translation – net of tax | (19) | [1] | (19) | (19) | |||
Ending, balance at Dec. 31, 2013 | (202) | 456 | (639) | (20) | (203) | 1 | |
Stock-based compensation | (1) | (1) | (1) | ||||
Net income (loss) | 81 | 81 | 81 | ||||
Dividends | (66) | (66) | (66) | ||||
Pension liability adjustment | 1 | 1 | 1 | ||||
Change in market value of interest rate swaps | (6) | (6) | (6) | ||||
Currency translation – net of tax | (28) | [1] | (28) | (28) | |||
Ending, balance at Dec. 31, 2014 | (221) | 455 | (624) | (53) | (222) | 1 | |
Stock-based compensation | 3 | 3 | 3 | ||||
Net income (loss) | (73) | (72) | (72) | $ (1) | |||
Dividends | (21) | (21) | (21) | ||||
Pension liability adjustment | (1) | (1) | (1) | ||||
Change in market value of interest rate swaps | (2) | (2) | (2) | ||||
Currency translation – net of tax | 7 | [1] | 7 | 7 | |||
Ending, balance at Dec. 31, 2015 | $ (308) | $ 458 | $ (717) | $ (49) | $ (308) | ||
[1] | Net of $2 million tax benefit in 2015, $6 million tax expense in 2014 and $3 million tax expense in 2013. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net (loss) income | $ (72) | $ 81 | $ 7 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 19 | 22 | 22 |
Currency devaluation | 0 | 7 | 2 |
Loss (gain) on sale of businesses | 77 | (32) | 0 |
Non-cash reserves | 5 | 0 | 0 |
Stock-based compensation | 3 | 3 | 1 |
Loss on extinguishment of debt | 0 | 0 | 15 |
Write-off of unamortized deferred financing costs | 1 | 1 | 8 |
Write-off of original issue discount on subordinated notes | 0 | 0 | 1 |
Provision for deferred income taxes | (18) | (20) | 27 |
Change in trade accounts receivable | (7) | (41) | 7 |
Change in inventories | (30) | (10) | (3) |
Change in other current operating assets | 60 | (6) | (43) |
Change in other current operating liabilities | (15) | 20 | 25 |
Change in other | (2) | (5) | 30 |
Net cash provided by operating activities | 21 | 20 | 99 |
Investing activities | |||
Proceeds from sales of businesses, net of cash transferred | 91 | 149 | 0 |
Proceeds from the sale of an equity method investment | 0 | 4 | 0 |
Change in restricted cash | (2) | (4) | 0 |
Investments in companies, net cash acquired | 0 | 0 | (1) |
Additions to property, plant and equipment | (28) | (26) | (31) |
Other investing activities | 0 | 3 | 0 |
Net cash provided by (used in) investing activities | 61 | 126 | (32) |
Financing activities | |||
Repayments of other debt | (17) | (10) | 0 |
Proceeds from other debt | 28 | 7 | 0 |
Repayment on secured notes | 0 | 0 | (195) |
Repayment on subordinated notes | 0 | 0 | (367) |
Distribution to our shareholders | (21) | (66) | (352) |
Repayment of term loans | (83) | (123) | (3) |
Proceeds from stock options exercise | 1 | 0 | 0 |
Payment of deferred financing costs | 0 | 0 | (15) |
Proceeds from term loans | 0 | 0 | 667 |
Proceeds from senior notes | 0 | 0 | 250 |
Other financing activities | (1) | 0 | 0 |
Net cash provided by (used in) financing activities | (93) | (192) | (15) |
Effect of exchange rates on cash | (6) | (10) | (2) |
(Decrease) increase in cash and cash equivalents | (17) | (56) | 50 |
Cash and cash equivalents at beginning of the period | 45 | 101 | 51 |
Cash and cash equivalents at end of the period | 28 | 45 | 101 |
Cash paid during the period for: | |||
Interest | 55 | 52 | 64 |
Income taxes | 9 | 24 | 20 |
Noncash investing and financing activities: | |||
Additions to property, plant and equipment included in accounts payable | $ 2 | $ 1 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Affinia Group Intermediate Holdings Inc. (“Affinia” or the “Company”), headquartered in Gastonia, North Carolina, is an innovative global leader in the design, manufacture, distribution and marketing of industrial grade filtration products and services. The Company’s broad range of filtration and other products are sold in North America, Europe, South America, Asia and Africa. The Company’s brands include WIX ® ® ® MANN+HUMMEL Merger The Company is wholly-owned by Affinia Group Holdings Inc. (“Holdings”), a Delaware corporation controlled by affiliates of The Cypress Group, L.L.C. (“Cypress”). On August 13, 2015, Holdings entered into an agreement and plan of merger (the “Merger Agreement”) with MANN+HUMMEL Holding GmbH, a German limited liability company (“MANN+HUMMEL”), pursuant to which M+H SUB 2015 INC., a Delaware corporation and an indirect wholly-owned subsidiary of MANN+HUMMEL (“Merger Sub”) will be merged with and into Holdings, with Holdings surviving the merger as an indirect wholly-owned subsidiary of MANN+HUMMEL. Subject to the terms and conditions set forth in the Merger Agreement, the aggregate merger consideration payable to the shareholders of Holdings and the holders of restricted stock units and phantom shares referred to in the Merger Agreement (collectively, “Sellers”), is $513.1 million (i) minus adjustments reflecting transaction expenses, a $10 million escrow to cover limited indemnities and an amount reserved for the payment of expenses incurred by the sellers’ representative, (ii) plus adjustments reflecting adjusted net proceeds from the sale of the Company’s Brazilian, Argentinian and Uruguayan operations (collectively, the “ASA Transactions”), (iii) plus and a daily interest factor applied to the purchase price. At the effective time of the merger, each outstanding share of Holdings, plus shares deemed under the Merger Agreement to be outstanding with respect to restricted stock units and phantom shares, will be converted into the right to receive a proportionate share of the aggregate consideration, plus a contingent right to receive a portion of the escrow amount and the amount reserved for expenses of the sellers’ representative, in each case at the time and upon satisfaction of the conditions specified in the Merger Agreement. The Merger Agreement has been approved by the Board of Directors of Holdings as well as all required governing bodies of MANN+HUMMEL (including its Supervisory Board) and the Board of Directors and stockholder of Merger Sub. Consummation of the merger is subject to certain customary conditions, including, among others, adoption of the Merger Agreement by the holders of a majority of the issued and outstanding shares of Holdings common stock, holders of no more than five percent of the common stock of Holdings exercising dissenters’ rights, receipt of any required regulatory approvals and expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the absence of any order, judgment, injunction, decree, stipulation or determination prohibiting the merger, and completion of the Affinia South America (“ASA”) Transactions. It is currently anticipated that this transaction will close in the first half of 2016 depending on timing of regulatory approvals and satisfaction of other closing conditions. The Merger Agreement contains representations and warranties customary for transactions of this type. Holdings has agreed to various covenants and agreements, including, among others, agreements to (i) conduct its business in the ordinary course consistent with past practice during the period between the execution of the Merger Agreement and the closing thereunder and (ii) not engage in certain kinds of transactions during this period, including transactions involving so-called leakage to the Sellers. The Merger Agreement also contains certain termination provisions for Holdings and MANN+HUMMEL, including, among others, termination rights for Holdings and MANN+HUMMEL in the event the merger has not closed within eight months after the date of the Merger Agreement, extended up to sixty days if necessary for Holdings to complete the ASA Transactions (the “Outside Date”) or in the event there is a breach of a representation, warranty, covenant or agreement by the other party which cannot be cured by the Outside Date. Pursuant to an amendment (the “First Amendment”) to the Merger Agreement executed on January 26, 2016 by MANN+HUMMEL and James S. McElya and Joseph A. Onorato, collectively acting solely as representative to the Sellers, the Outside Date was extended to August 1, 2016. ASA Disposal In the second quarter of 2015, management committed to a plan to sell Pellegrino Distribuidora de Autopecas Ltda. (“Pellegrino”) and Affinia Automotiva Ltda. (“Automotiva”), collectively referred to as “ASA Brazil.” The Company completed the sale of Pellegrino in September 2015 and the sale of Automotiva in October 2015. Additionally, in the third quarter of 2015, two of the Company’s subsidiaries executed definitive purchase and sale agreements for the remaining ASA operations in Argentina and Uruguay and completed the sale of these businesses in September 2015. Accordingly, the results of operations of the former ASA segment have been included as a component of discontinued operations in the Consolidated Statements of Operations for all periods presented. With the completion of these transactions in 2015, all of the businesses that comprised the former ASA segment have been disposed of through sale. See Note 4, “Discontinued Operations,” for additional information. The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. In these Notes to the Consolidated Financial Statements, the term the “Company,” refers to Affinia Group Intermediate Holdings Inc. and its direct and indirect subsidiaries on a consolidated basis. Restatement of Previously Reported Financial Information During the year ended December 31, 2015, the Company identified certain errors in previously issued financial statements related to inventory, property, plant and equipment, intangible assets and liabilities associated with customer cash discounts. · The Company identified a misstatement in the amortization of its intangible asset balance. This resulted in a misstatement of the Company’s consolidated financial statements of $1 million in the year ended December 31, 2014. · The Company recorded catch-up deprecation for assets that had been placed into service for which depreciation had not yet commenced. Additionally, the Company recorded a reduction to the carrying value of its inventory balance as a result of misstatement of work-in-process and a reserve for excess and obsolete inventory. Collectively, this resulted in a misstatement of the Company’s consolidated financial statements of $1 million in the year ended December 31, 2014 and less than $1 million in the year ended December 31, 2013. · The Company identified a misstatement in its estimate of expected customer cash discounts, which is included as a component of accounts receivable. This is a misstatement of less than $1 million in each of the years ended December 31, 2014 and 2013. · As a result of the misstatements above, the impact of the corrections on income tax expense was a benefit of less than $1 million in each of the years ended December 31, 2014 and 2013. Additionally, the Company also reflected the reclassification of amounts between line items on the Consolidated Statements of Operations included in previously issued financial statements. For the years ended December 31, 2014 and 2013, reclassifications of $5 million and $4 million, respectively, were made between “Net sales” and “Selling, general and administrative expenses.” For the year ended December 31, 2014, a reclassification of $6 million between “Cost of goods sold” and “Other income and expense, net” was made. There were no changes to net income as a result of these reclassifications in either the years ended December 31, 2014 and 2013. We have evaluated the effects of the above misstatements on our consolidated financial statements for each of these years in accordance with the guidance provided by SEC Staff Accounting Bulletin No. 108, codified as SAB Topic 1.N, “Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in the Current Year Financial Statements,” and concluded that none of these years are materially misstated. To correct these misstatements within the accompanying consolidated financial statements, and as permitted by SAB Topic 1.N, we have reduced the Company’s “Accumulated deficit,” “Total shareholders’ deficit” and “Total equity” by $2 million as of January 1, 2013, and decreased “Net (loss) income from continuing operations” for the years ended December 31, 2014 and December 31, 2013 by $1 million and $3 million, respectively. See Note 20, “Reconciliation of Previously Reported Amounts to Amounts Revised and Restated” for the impact of these corrections on previously reported amounts for the years ended December 31, 2014 and 2013. There were no corrections required to the results for 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include all domestic and foreign subsidiaries that were more than 50% owned and controlled as of each respective reporting period presented. All intercompany transactions have been eliminated. Investments in which the Company has the ability to exercise significant influence but does not control are accounted for using the equity method of accounting. Investments in which the Company is not able to exercise significant influence over are accounted for under the cost method of accounting. Use of Estimates These Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The preparation of financial statements that conform to GAAP in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. Concentration of Credit Risk The primary type of financial instruments that subject the Company to concentrations of credit risk are trade accounts receivable. The Company limits its credit risk by performing ongoing credit evaluations of its customers and, when deemed necessary, requires letters of credit, guarantees or collateral. The majority of the Company’s accounts receivable is due from replacement parts wholesalers and retailers serving the aftermarket. The Company’s net sales to its largest customer for the years ended December 31, 2015, 2014 and 2013, was 34%, 33% and 33% of total net sales from continuing operations, respectively. Net sales to its current second largest customer for the years ended December 31, 2015, 2014 and 2013, was 11%, 9% and 7% of total net sales from continuing operations, respectively. Net sales represent the amounts invoiced to customers after adjustments related to rebates, returns and discounts. The Company provides reserves for rebates, returns and discounts at the time of sale which are subsequently applied to the account of specific customers based upon actual activity including the attainment of targeted volumes. The Company’s largest customer’s accounts receivable as of December 31, 2015 and 2014, represented approximately 50% and 45%, respectively, of the total accounts receivable. Foreign Currency Translation Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date and equity accounts are translated at historical rates. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are presented in “Change in foreign currency translation adjustments” within the Consolidated Statements of Comprehensive Income (Loss). Included in “Net (loss) income” in the Consolidated Statements of Operations are the gains and losses arising from foreign currency transactions. The impact of foreign currency transactions, including the results of the Company’s foreign currency hedging activities, on “Income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax” in the Consolidated Statements of Operations amounted to a loss of $6 million, $13 million and $6 million during the years ended December 31, 2015, 2014 and 2013, respectively. These amounts include devaluation charges discussed further in Note 18, “Venezuela Operations.” Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. Restricted Cash Restricted cash at December 31, 2015 and 2014 relates to amounts on deposit in Venezuela to fund the procurement of U.S. Dollars via currency exchange auctions administered by the Venezuelan government. Accounts receivable The Company records trade accounts receivable when revenue is recorded in accordance with the Company’s revenue recognition policy and relieves accounts receivable when payments are received from customers. Allowance for Doubtful Accounts The allowance for doubtful accounts is established through charges to the provision for bad debts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts, and management’s evaluation of business risk. The allowance is an estimate that may be impacted by economic and market conditions which could have an effect on future allowance requirements and results of operations. Inventories Inventories are valued at the lower of cost or market. Cost is determined on the first-in, first-out (“FIFO”) method of inventory costing for all domestic inventories and at the Company’s Poland operations, or average cost basis for other non-U.S. inventories. Goodwill Goodwill is not amortized, but instead the Company evaluates goodwill for impairment, as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. In assessing the recoverability of goodwill, the Company performs a qualitative or quantitative assessment to test for impairment annually. If the Company determines, on the basis of qualitative factors, that a quantitative impairment test is required estimated future cash flows and other factors are made to determine the fair value of the respective reporting unit. If these estimates or related projections change in the future, the Company may be required to record impairment charges for goodwill at that time. Intangibles Affinia has trade names with indefinite lives and other intangibles with definite lives. Affinia tests trade names for impairment on an annual basis as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. Trade names are tested for impairment by comparing the fair value to their carrying values. The Company’s intangibles with definite lives consist of customer relationships, patents and developed technology. These assets are amortized on a straight-line basis over estimated useful lives ranging from 5 to 20 years. Certain conditions may arise that could result in a change in useful lives or require the Company to perform a valuation to determine if the definite lived intangibles are impaired. Deferred Financing Costs Deferred financing costs are incurred to obtain long-term financing and are amortized using the effective interest method over the term of the related debt. The amortization of deferred financing costs is classified in interest expense in the statement of operations. Depreciation Fixed assets are depreciated over their estimated remaining lives using the straight-line method for financial reporting purposes and accelerated depreciation methods for federal income tax purposes. Major additions and improvements are capitalized and depreciated over their estimated useful lives, and repairs and maintenance are charged to expense in the period incurred. The Company reviews long-lived assets for impairment and generally accepted accounting principles require recognition of an impairment loss only if the carrying amount of a long-lived asset is not recoverable from its undiscounted cash flows. If the long-lived asset is not recoverable, the Company measures an impairment loss as the difference between the carrying amount and fair value of the asset. Useful lives for buildings and building improvements, machinery and equipment, tooling and office equipment, furniture and fixtures principally range from 20 to 30 years, five to ten years, three to five years and three to ten years, respectively. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds is recorded as a gain or loss on disposition. Revenue Recognition Sales are recognized when products are shipped or received, depending on the contractual terms, and risk of loss has transferred to the customer. The Company estimates and records provisions for warranty costs, sales returns, rebates and other allowances based on experience and other relevant factors, when sales are recognized. The Company assesses the adequacy of its recorded warranty, sales returns, rebates and allowances liabilities on a regular basis and adjusts the recorded amounts as necessary. While management believes that these estimates are reasonable, actual warranty costs, actual returns, rebates and allowances may differ from estimates. Shipping and handling fees billed to customers are included in sales and the costs of shipping and handling are included in cost of sales. Income Taxes Income taxes are recognized during the period in which transactions enter into the determination of financial statement income, with deferred income taxes being provided for the tax effect of temporary differences between the carrying amount of assets and liabilities and their tax basis. Deferred income taxes are provided on the undistributed earnings of foreign subsidiaries and affiliated companies except to the extent such earnings are considered to be permanently reinvested in the subsidiary or affiliate. In cases where foreign tax credits will not offset U.S. income taxes, amounts are included in the “Income tax provision” within Consolidated Statements of Operations. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Financial Instruments The reported fair values of financial instruments, consisting of cash and cash equivalents, trade accounts receivable and long-term debt, are based on a variety of factors. Where available, fair values represent quoted market prices for identical or comparable instruments. Where quoted market prices are not available, fair values are estimated based on assumptions concerning the implied market volatilities, amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of credit and market risk. Fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. As of December 31, 2015 and 2014, the book value of some of the Company’s financial instruments, consisting of cash and cash equivalents and trade accounts receivable, approximated their fair values. The fair value of long-term debt is discussed further in Note 6, “Debt.” Environmental Compliance and Remediation Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to existing conditions caused by past operations which do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Estimated costs are based upon current laws and regulations, existing technology and the most probable method of remediation. The costs are not discounted and exclude the effects of inflation. If the cost estimates result in a range of equally probable amounts, the lower end of the range is accrued. Advertising Costs Advertising costs are recognized within “Selling, general and administrative expenses” in the Consolidated Statements of Operations at the time advertising when incurred. Advertising expenses included in continuing operations were $17 million, $17 million and $16 million for the years 2015, 2014, and 2013, respectively. The advertising expenses included in discontinued operations, were $2 million, $3 million and $5 million for the years 2015, 2014, and 2013, respectively. Promotional Programs Cooperative advertising programs conducted with customers that promote the Company’s products are accrued as a rebate based on anticipated total amounts to be rebated to customers over the period of the agreement with the customer. Rebates are reflected within “net sales” in the Consolidated Statements of Operations. Aftermarket distributors typically source their product lines at a particular price point and product category with one “full-line” supplier, such as Affinia, which covers substantially all of their product requirements. Switching to a new supplier typically requires that a distributor or supplier make a substantial investment to purchase, or “changeover” to the new supplier’s products. The changeover costs and other incentives incurred in connection with obtaining new business are recognized as a reduction to net sales over the period during which revenue from the initial customer order is recognized. Infrequently, the Company enters into a contract with a customer for a set period of time that requires the reimbursement of the incentive by the customer if the future conditions of the contract are not met. In these infrequent cases the incentive is recorded as a reduction of revenue over the life of the contract. Insurance The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, vehicle liability and the Company-funded portion of employee-related health care benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Derivatives The Company is subject to various financial risks during the normal course of business operations, including but not limited to, adverse changes to interest rates, currency exchange rates, counterparty creditworthiness, and commodity prices. The Company may utilize financial derivative instruments in order to mitigate the potential impact of these factors. The Company’s policies strictly prohibit the use of derivatives for speculative purposes. The Company uses derivative financial instruments to manage the risk that changes in interest rates will have on the amount of future interest payments. Interest rate swap contracts are used to adjust the proportion of total debt that is subject to variable versus fixed interest rates. Under these agreements, the Company agrees to pay an amount equal to a specified fixed rate times a notional principal amount, and to receive an amount equal to a specified variable rate times the same notional principal amount or vice versa. The notional amounts of the contract are not exchanged. No other cash payments are made unless the contract is terminated prior to maturity, in which case the amount paid or received in settlement is established by agreement at the time of termination and will represent the net present value, at current rates of interest, of the remaining obligation to exchange payments under the terms of the contract. The Company measures hedge effectiveness, at least quarterly, by using the hypothetical derivative method. In 2015 and 2014, the Company’s derivative instrument portfolio included standard currency forward contracts and interest rate swaps. The currency forward contracts are intended to offset the earnings impact related to the periodic revaluation of specific non-functional currency denominated monetary working capital accounts and intercompany financing arrangements. The Company does not employ hedge accounting treatment for its currency forward contacts because the earnings impact from both the underlying exposures and the hedge transactions are recognized in each accounting period. The Company uses interest rate swaps to manage the ratio of net floating-rate debt to total debt outstanding, thereby reducing the potential impact that interest rate variability may have on its consolidated financial results. The Company has designated its interest rate swaps as “cash flow” hedges. Stock-Based Compensation The Company accounts for equity awards issued under its 2005 Stock Plan in accordance with Accounting Standards Codification (“ASC”) Topic 718, “ Compensation – Stock Compensation” New Accounting Pronouncements Accounting Pronouncements Issued But Not Yet Adopted In July 2015, the FASB issued ASU 2015-11 “ Simplifying the Measurement of Inventory In April 2015, the FASB issued ASU 2015-03 “ Simplifying the Presentation of Debt Issuance Costs In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern.” Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17 “ Balance Sheet Classification of Deferred Taxes. In April 2014, the FASB issued ASU 2014-08, “ Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. “Presentation of Financial Statements—Discontinued Operations,” |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 3. SEGMENT INFORMATION The Company has one operating segment, Filtration, which is considered a reportable segment under ASC Topic 280 “ Segment Reporting Filtration’s products fit medium and heavy duty trucks, light vehicles, equipment in the off-highway market (i.e. residential and non-residential construction, mining, forestry and agricultural) and equipment for industrial and marine applications. Filtration’s products include oil, air, fuel, cabin air, coolant, hydraulic and other filters for many types of vehicles and machinery. The products are sold under well-known brands, such as WIX ® ® ® Prior to the third quarter of 2015, the Company presented ASA as a separate reportable segment. As discussed further in Note 4, “Discontinued Operations,” in the second quarter of 2015, management committed to a plan to sell ASA Brazil. At that time, ASA Brazil met the criteria of assets held for sale under ASC Topic 205, “ Presentation of Financial Statements The following table presents financial information for the Filtration segment, as well as for corporate, eliminations and other, and on a consolidated basis: Net Sales Operating Profit Years Ended December 31, (Dollars in millions) 2015 2014 2013 2015 2014 2013 Filtration $ 900 $ 962 $ 897 $ 130 $ 153 $ 144 Corporate, eliminations and other (1) (1 ) 8 13 (47 ) (52 ) (62 ) Consolidated $ 899 $ 970 $ 910 $ 83 $ 101 $ 82 Total Assets Years Ended December 31, (Dollars in millions) 2015 2014 Filtration $ 453 $ 442 Corporate, eliminations and other (2) 135 178 Assets of discontinued operations (3) — 199 Consolidated $ 588 $ 819 (1) The twelve months ended December 31, 2014 includes $9 million of net sales and operating profit of $2 million associated with ASA’s Venezuelan operations, which were shut down in June 2014. As these operations did not meet the criteria as held-for-sale, they are reported as a component of continuing operations. However, due to the insignificance of the amounts associated with this business, management has presented them within corporate, eliminations and other since the remainder of the ASA segment is included in discontinued operations. The twelve months ended December 31, 2013 includes $13 million of net sales and operating profit of $1 million associated with ASA’s Venezuelan operations. (2) Corporate assets consist of cash, deferred income taxes, corporate facility and various other assets that are not specific to an operating segment. (3) The amounts related to the former ASA segment and the Chassis group (see Note 3, “Segment Information,” for a further discussion on the Company’s Chassis group) are classified in the “Current assets of discontinued operations” in 2014. Depreciation and Amortization Capital Expenditures Years Ended December 31, (Dollars in millions) 2015 2014 2013 2015 2014 2013 Filtration $ 17 $ 17 $ 15 $ 26 $ 22 $ 22 Corporate, eliminations and other — 2 3 1 — — Total from continuing operations 17 19 18 27 22 22 Discontinued operations 2 3 4 1 4 9 Consolidated $ 19 $ 22 $ 22 $ 28 $ 26 $ 31 Net sales by geographic region were as follows: Years Ended December 31, (Dollars in millions) 2015 2014 2013 Canada $ 37 $ 46 $ 47 Poland 146 167 161 Venezuela 110 73 75 Other countries 58 60 54 Total other countries 351 346 337 United States 548 624 573 Consolidated $ 899 $ 970 $ 910 Long-lived assets by geographic region were as follows: Years Ended December 31, (Dollars in millions) 2015 2014 (1) China $ 16 $ 18 Poland 29 27 Other countries 9 9 Total other countries 54 54 United States 119 125 Consolidated $ 173 $ 179 (1) Long-lived assets as of December 31, 2014 exclude $14 million for the former ASA segment, which is classified in current assets of discontinued operations. Net sales by geographic area were determined based on origin of sale. Geographic data on long-lived assets are comprised of property, plant and equipment, goodwill, other intangible assets and deferred financing costs. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 4. DISCONTINUED OPERATIONS As described further below, in the second quarter of 2015, management committed to a plan to sell ASA Brazil. In accordance with ASC 205, this portion of the ASA segment met the definition of a disposal group at the time management committed to a plan to sell and, accordingly, the results of operations have been classified as a component of discontinued operations for all periods presented. While the Company was actively marketing the remaining ASA operations in Argentina and Uruguay at the same time as ASA Brazil, these businesses did not meet the held-for-sale criteria under ASC 205 during the second quarter of 2015. In the third quarter of 2015, the Company closed on the sale of Pellegrino, as well as reached definitive agreements and closed on the disposition of ASA’s remaining operations in Argentina and Uruguay. In October 2015, the sale of Automotiva was completed. Since ASA was one of the Company’s reportable segments, management has determined that, despite the sale of disposal groups to multiple acquirers the ultimate sale of all of the businesses that comprised the ASA segment represents a strategic shift that will have a major effect on the Company’s operations and financial results. For the year ended December 31, 2014, the former ASA segment accounted for 31% of consolidated net sales. Accordingly, the results of operations of the former ASA segment have been classified as a component of discontinued operations for all periods presented. The Consolidated Statements of Cash Flows were not adjusted to reflect this operation as a discontinued operation for any period presented. On June 12, 2015, Affinia Canada ULC and Affinia Southern Holdings LLC (the “ASA Brazil Sellers”), wholly-owned indirect subsidiaries of the Company, entered into two separate purchase and sale agreements (the “Purchase Agreements”) to sell their equity interests in each of Pellegrino and Automotiva. The purchasers under the Pellegrino Purchase Agreement are Distribuidora Automotiva S.A. and Car Central De Autopecas e Rolamentos Ltda. (the “Pellegrino Purchasers”) and the purchasers under the Automotiva Purchase Agreement are Auto Norte Distribuidora de Pecas Ltda., Cobra Rolamentos e Autopecas Ltda., Distribuidora Automotiva S.A., Jorge C. Schertel, Pedro Molina Quaresma and Sedim-Administracao e Participacoes Ltda. (the “Automotiva Purchasers”). The purchase price to the ASA Brazil Sellers for the sale of each of Pellegrino and Automotiva was paid in Brazilian Reals. The Pellegrino purchase price was 215,000,000 Brazilian Reals and the purchase price for the sale of Automotiva was 146,285,000 Brazilian Reals (in each case, the “Base Purchase Price”), and, in each case, plus or minus an adjustment reflecting (i) an estimate of interim profits or losses, as applicable, of the Sellers related to the Pellegrino or Automotiva business, for a specified period prior to each respective closing, each calculated in accordance with a process established in the respective Purchase Agreement, and (ii) minus a percentage of certain claims that may arise after signing and before closing. After each closing, each Purchase Agreement called for a specified process for the parties to determine a final purchase price reflecting the actual interim profits and losses and such claims, as well as other adjustments. As discussed above, the sale of Pellegrino was completed in September 2015. Based on the exchange rate in effect on the date of closing, the Company received proceeds of $58 million associated with the sale of Pellegrino and recognized a pre-tax loss of $25 million on sale. This loss was predominately driven by the release of currency translation adjustments that had been previously deferred as a component of accumulated other comprehensive income. A portion of the proceeds from the sale was used to pay down the Company’s outstanding debt. The tax implications for the sale of Pellegrino were insignificant. Additionally, as discussed above, the sale of the operations in Argentina and Uruguay were completed in September 2015. At closing, the Company received aggregate proceeds of $5 million and recognized a pre-tax loss of $20 million on sale. For tax purposes, the sale resulted in a pre-tax loss of $9 million; however, the capital loss is offset by a valuation allowance and resulted in no tax benefit being recorded. The president of the Company’s former ASA segment is one of the buyers in the Automotiva sale. In connection with and simultaneous with the closing of the Pellegrino transaction on September 30, 2015, this individual purchased four properties owned by Pellegrino with a net book value of less than $1 million. In order to fund the purchase of the properties, at closing, the Company redeemed all outstanding equity in Holdings owned by the individual and received net cash proceeds of less than $1 million for the purchase of the real estate. This amount is included in the purchase price consideration discussed above. Additionally, the same individual is also part of the buying group that acquired Automotiva which is further discussed below. On October 30, 2015, the ASA Brazil Sellers completed the sale of Automotiva. Cash proceeds at the time of closing reflect a base purchase price of 146,285,000 Brazilian Reals, as adjusted pursuant to the terms of the Agreement to reflect the actual interim profits and losses of the Automotiva business, less the placement of 71,000,000 Brazilian Reals in an escrow account with a Brazilian bank. Such escrow was to cover any amounts that may be owed by Automotiva relating to a Brazilian antitrust investigation commenced on September 25, 2015, including legal and other fees, and represented the sole source of funds that the Buyers may recover from the ASA Brazil Sellers as to any amounts that may be owed by Automotiva relating to such investigation. Accordingly, at closing, the ASA Brazil Sellers received proceeds of $18 million. On November 30, 2015, the Company received from the escrow with the Brazilian bank 49,000,000 in Brazilian Reals or US $13 million. In connection with this investigation, the Company recorded an accrual that represents management’s best estimate of the most likely outcome of this matter. This expense is included as a component of “(Loss) income from discontinued operations, net of tax,” on the Consolidated Statements of Operations. The sale of Automotiva resulted in a pre-tax loss of $32 million, with insignificant tax implications associated with the sale. The following table shows the former ASA segment’s assets and liabilities that are included in “Current assets of discontinued operations” and “Current liabilities of discontinued operations” on the Consolidated Balance Sheets: December 31, December 31, (Dollars in millions) 2015 2014 Cash and cash equivalents $ — $ 19 Trade accounts receivable — 56 Inventories, net — 70 Other current assets — 24 Property, plant and equipment, net — 14 Other assets — 16 Current assets of discontinued operations $ — $ 199 Accounts payable 39 Other accrued expenses 6 19 Current liabilities of discontinued operations $ 6 $ 58 The following table shows the “Depreciation and amortization” and capital expenditures that are included within the Consolidated Statements of Cash Flow associated with the former ASA segment. Years Ended December 31, (Dollars in millions) 2015 2014 Depreciation and amortization $ 2 $ 3 Capital expenditures $ 1 $ 4 In the fourth quarter of 2013, management committed to a plan to sell the Chassis group. Pursuant to ASC 205, the Chassis group met the definition of a disposal group at the time management committed to a plan to sell the group and, accordingly, the results of operations of the Chassis group have been classified as a component of discontinued operations. On January 21, 2014, Affinia entered into an asset purchase agreement, as amended, with Federal-Mogul Chassis LLC (formerly known as VCS Quest Acquisition LLC) (“FM Chassis”), an affiliate of Federal-Mogul Corporation, pursuant to which FM Chassis agreed to purchase the Chassis group. This transaction closed on May 1, 2014. The Consolidated Statements of Cash Flows were not adjusted to reflect this group as a discontinued operation for any period presented. Upon the closing of this transaction in May 2014, Affinia received cash proceeds of $140 million, which represented the agreed upon selling price of $150 million less a holdback of consideration of $10 million until completion of certain post-closing performance obligations. In September 2014, the post-closing performance obligations were completed and the Company received $9 million of cash proceeds with the remaining $1 million allocated to a post-closing purchase price adjustment. The sale of the Chassis group resulted in a pre-tax gain of $32 million. The Company released an $18 million capital loss valuation allowance as a result of the sale, the tax benefit of which offset the tax expense incurred by the gain on the sale. This resulted in a tax expense of $6 million on the sale transaction. The following table shows the Chassis group’s net sales, income before tax provision, income tax provision and net income that are included within “(Loss) income from discontinued operations, net of tax” on the Consolidated Statements of Operations associated with the Chassis disposal group: Years Ended December 31, (Dollars in millions) 2015 2014 2013 Net sales $ — $ 64 $ 189 Income before income tax provision — 5 15 Income tax provision — (2 ) (10 ) Income from discontinued operations, net of tax $ — $ 3 $ 5 In addition to the amounts reflected in the tables above associated with the results of operations of the Chassis Group, “(Loss) income from discontinued operations, net of tax” on the Consolidated Statements of Operations for the periods presented includes the following: · For the years ended December 31, 2015, 2014 and 2013, the results of operations of the former ASA segment. · For the year ended December 31, 2015, a pre-tax loss of $77 million associated with the sale of the ASA businesses discussed above. · For the year ended December 31, 2014, a pre-tax gain on the sale of the Chassis group of $32 million as discussed above. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 5. DERIVATIVES The Company’s financial derivative assets and liabilities consist of standard currency forward contracts and interest rate swaps. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: · Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. · Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. · Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. All derivative instruments are recognized on the Company’s balance sheet at fair value. The fair value measurements of the Company’s currency forward contracts and interest rate swaps are based upon Level 2 inputs consisting of observable market data, as reported by a recognized independent third-party financial information provider. Based upon the Company’s periodic assessment of its own creditworthiness, and of the creditworthiness of the counterparties to its derivative instruments, fair value measurements are not adjusted for nonperformance risk. Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC Topic 820, “Fair Value Measurements and Disclosures” “ASC 820” A. Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models). B. Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. C. Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). The Company’s fair value of interest rate swaps and its currency forward contract derivatives at December 31, 2015 and 2014 are set forth in the table below: (Dollars in Millions) Asset (Liability) Level 2 Valuation Technique December 31, 2015: Interest rate swap contracts $ (2 ) $ (2 ) A Foreign currency forward contracts — — A December 31, 2014: Interest rate swap contracts $ 2 $ 2 A Foreign currency forward contracts — — A Currency Forward Contract Derivatives The Company’s currency forward contracts are valued using then-current spot and forward market data as provided by external financial institutions. The Company enters into currency forward contracts with banking institutions of only the highest tiered credit ratings and thus the counterparty credit risk associated with these contracts is not considered significant. The Company enters into short-term currency forward contracts which are intended to offset the currency exchange gain (loss) related to the re-measurement process and are not designated as hedges of specific monetary asset balances subject to currency risks. Therefore, any changes in the fair value of these short-term currency forward contracts are recognized in earnings each accounting period. The aggregate notional amount of outstanding short-term currency forward contracts was $3 million and $34 million as of December 31, 2015 and 2014, respectively. Gains of less than $1 million were recorded for the year ended December 31, 2015, losses of less than $1 million were recorded for the year ended December 31, 2014 and gains of $1 million were recorded for the year ended December 31, 2013. Additionally, beginning in the third quarter of 2014, the Company entered into currency forward contracts which are intended to offset against foreign exchange risk for certain forecasted gross receivable and payable balances. These currency forward contracts are considered highly effective based on critical terms matching and the result of de minimis The Company’s outstanding currency forward contracts are recorded in the Consolidated Balance Sheets as either “Other current assets” or “Other accrued expenses,” depending on whether the contracts are in asset or liability positions at the end of each reporting period. Currency forward contract gains and losses are recognized in “Other income and expense, net” in the Consolidated Statements of Operations in the reporting period of occurrence. Interest Rate Derivatives In April 2013, the Company entered into interest rate swaps having an aggregate notional value of $300 million to effectively fix the rate of interest on a portion of the Company’s Term Loan B-2 until April 25, 2020. The Company funds its business operations with a combination of fixed and floating-rate debt. Therefore, the Company’s reported results from operations may be adversely impacted by rising interest rates. The Company’s interest rate risk policy seeks to minimize the long-term cost of debt, subject to a limitation of the maximum percentage of net floating-rate debt versus total debt outstanding. While the Company’s policy does not require that it maintain a specific ratio of net floating-rate debt as a proportion of total debt outstanding, the Company uses interest rate swaps to manage the ratio of net floating-rate debt to total debt outstanding within the Company’s policy target range, thereby reducing the potential impact that interest rate variability may have on its consolidated financial results. The Company’s policy prohibits the use of interest rate derivatives to generate trading profits or to otherwise speculate on interest rate movements. The Company has designated its interest rate swaps as cash flow hedges as described in ASC Topic 815, “ Derivatives and Hedging The interest rate swaps are recorded in the Consolidated Balance Sheets as “Other current assets” or “Other accrued expenses,” accordingly. In compliance with ASC 815, the Company formally assesses the effectiveness of its interest rate swaps at inception and on a quarterly basis thereafter. These assessments have established that swaps have been, and are expected to continue to be, highly effective at offsetting the interest expense variability of the underlying floating rate debt and are therefore eligible for cash flow hedge accounting treatment, pursuant to ASC 815. Changes in the fair value of derivatives designated as cash flow hedges are recorded to “Other comprehensive income (loss), net of tax” to the extent such cash flow hedges are effective. Amounts are reclassified from “Other comprehensive income (loss), net of tax” when the underlying hedged items are recognized, during the period that a hedge transaction is terminated, or whenever a portion of the hedge transaction results are deemed ineffective. The Company reclassified $2 million from “Other comprehensive income (loss), net of tax” into “Interest expense” in each of the years ended December 31, 2015 and 2014. There have been no gains or losses reclassified from “Other comprehensive income (loss), net of tax” into earnings due to hedge ineffectiveness related to any of the Company’s interest rate swap transactions, nor were there gains or losses reclassified to income due to early termination of designated cash-flow hedge transactions as of December 31, 2015 or 2014. The notional amount of interest rate swaps outstanding was $300 million as of both December 31, 2015 and 2014. Notional Amounts The table below shows notional amounts associated with currency forward contracts and interest rate swaps as December 31, 2015 and December 31, 2014: (Dollars in millions) December 31, 2015 December 31, 2014 Foreign Currency Forward Contracts $ 25 $ 70 Interest Rate Contracts 300 300 The following table shows the fair value of interest rate derivatives and the line items in the Consolidated Balance Sheets where they are reported. The fair value of foreign currency forward contracts were insignificant at both December 31, 2015 and December 31, 2014. December 31, 2015 December 31, 2014 (Dollars in millions) Asset Liability Asset Liability Derivative Designated as Hedging Instruments Interest Rate Contracts Other current assets $ — $ 2 Other accrued expenses $ 2 $ — Total Derivatives Designated as Hedging Instruments $ — $ 2 $ 2 $ — The following table shows the gains and losses recognized on de-designated derivatives and the line items on the Consolidated Statements of Operations where the pretax gains and losses were reported. Years Ended December 31, (Dollars in millions) 2015 2014 Location of Pretax Gains (Losses) Recognized in Earnings Foreign Currency Forward Contracts Other income and expense, net $ 3 $ 1 Total Pretax Gains (Losses) Recognized in Earnings $ 3 $ 1 The following table shows the gains and losses recognized on cash flow hedges and the line items on the Consolidated Statements of Operations where such gains and losses are included when reclassified from AOCI. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Amounts for foreign currency forward contracts are reclassified to earnings within other income and expense, net as the underlying transactions impact earnings. Amounts associated with foreign currency forward contracts were insignificant during the year ended December 31, 2015 and 2014. Years Ended December 31, 2015 2014 Pretax Gains (Losses) Recorded in AOCI Interest Rate Contracts $ 4 $ 9 Total Pretax Gains (Losses) Recorded in AOCI $ 4 $ 9 Location of Pretax (Losses) Reclassified from AOCI into Earnings Interest Rate Contracts Interest Expense $ 2 $ 2 Total Pretax (Losses) Recognized in Earnings $ 2 $ 2 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 6. DEBT Debt consists of the following: (Dollars in millions) December 31, 2015 December 31, 2014 7.75% Senior notes, due May 2021 $ 250 $ 250 Term Loan B-1, due April 2016 148 175 Term Loan B-2, due April 2020 312 367 Other debt(1) 30 19 Total debt 740 811 Less: current portion (178 ) (19 ) Long-term debt $ 562 $ 792 (1) At December 31, 2015, the current portion consists of $148 million of Term Loan B-1, which, as discussed further below, was repaid in full in March 2016, $20 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.8 points and $10 million related to the Company’s Venezuela operations. At December 31, 2014, $12 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.9 points and $7 million related to the Company’s Venezuela operations. Scheduled maturities of debt for each of the next five years and thereafter are as follows: (Dollars in millions) Year Amount 2016 $ 178 2017 — 2018 — 2019 — 2020 312 2021 and thereafter 250 Total debt $ 740 The fair value of debt is as follows: Fair Value of Debt at December 31, 2015 (Dollars in millions) Book Value of Debt Fair Value Factor Fair Value of Debt Senior notes, due May 2021(1) $ 250 101.75 % $ 254 Term Loan B-1, due April 2016(1) 148 99.63 % 148 Term Loan B-2, due April 2020(1) 312 97.88 % 305 Other debt(2) 30 100 % 30 Total fair value of debt at December 31, 2015 $ 737 Fair Value of Debt at December 31, 2014 (Dollars in millions) Book Value of Debt Fair Value Factor Fair Value of Debt Senior notes, due May 2021(1) $ 250 102.50 % $ 256 Term Loan B-1, due April 2016(1) 175 97.88 % 171 Term Loan B-2, due April 2020(1) 367 97.00 % 356 Other debt(2) 19 100 % 19 Total fair value of debt at December 31, 2014 $ 802 (1) The fair value of the long-term debt was estimated based on quoted market prices obtained through broker or pricing services and categorized within Level 2 of the fair value hierarchy. The fair value of the Company’s debt that is publicly traded in the secondary market is classified as Level 2 and is based on current market yields obtained through broker or pricing services. (2) The carrying value of fixed rate short-term debt approximates fair value because of the short term nature of these instruments, and the carrying value of the Company’s current floating rate debt instruments approximates fair value because of the variable interest rates pertaining to those instruments. The fair value of debt is categorized within Level 2 of the fair value hierarchy. As discussed further in Note 4, “Discontinued Operations,” during 2015, the Company completed the sale of its ASA business. With the proceeds from the sale, the Company paid down $28 million of Term Loan B-1 and $55 million of Term Loan B-2. Additionally, in May 2014, the Company closed the sale of the Chassis group. In conjunction with the closing of the sale, cash proceeds of $149 million were received. With the proceeds and cash from operations, the Company paid down $24 million of Term Loan B-1 and $99 million of Term Loan B-2. Additionally, it made a $66 million distribution to Holdings. Holdings used all of the distribution to partially repay the note issued by Holdings to Dana Corporation (“Dana”) as part of the financing in connection with the acquisition in 2004 of substantially all of the aftermarket business operations of Dana (the “Seller Note”). ABL Revolver The Company replaced its asset-based credit facility with an ABL Revolver on April 25, 2013. The ABL Revolver comprises a revolving credit facility of up to $175 million for borrowings available solely to the U.S. domestic borrowers, including (i) a $30 million sub-limit for letters of credit and (ii) a $15 million swingline facility. Availability under the ABL Revolver is based upon monthly (or more frequent under certain circumstances) borrowing base valuations of the Company’s eligible inventory and accounts receivable, among other factors, and is reduced by certain reserves in effect from time to time. At December 31, 2015, there were no outstanding borrowings under the ABL Revolver. The Company had an additional $73 million of availability after giving effect to $7 million in outstanding letters of credit and less than $1 million for borrowing base reserves as of December 31, 2015. On February 4, 2014, Affinia entered into (i) the First Amendment to the Credit Agreement dated as of February 4, 2014 (the “Term Loan Amendment”), among Affinia, Holdings, JP Morgan Chase Bank, NA, as administrative agent and the lenders party thereto and (ii) the First Amendment to the ABL Credit Agreement dated as of February 4, 2014 (the “ABL Amendment”), among Affinia, Holdings, certain subsidiaries party thereto, the lenders party thereto and Bank of America, N.A, as administrative agent. The Term Loan Amendment and the ABL Amendment are referred to herein collectively as the “Amendments.” The Amendments, among other changes, amend certain negative covenants to permit the sale of the Chassis group and to permit certain restricted payments and loans and advances to Holdings. The Term Loan Amendment also amends certain prepayment terms in connection with the Chassis sale. Maturity . The ABL Revolver is scheduled to mature on April 25, 2018. Guarantees and collateral . The indebtedness, obligations and liabilities under the ABL Revolver are unconditionally guaranteed jointly and severally on a senior secured basis by the Company and certain of its current and future U.S. subsidiaries, and are secured, subject to permitted liens and other exceptions and exclusions, by a first-priority lien on accounts receivable, inventory, cash, deposit accounts, securities accounts and proceeds of the foregoing and certain assets related thereto and a second-priority lien on the collateral that secures the Term Loans on a first-priority basis. Mandatory prepayments . If at any time the outstanding borrowings under the ABL Revolver (including outstanding letters of credit and swingline loans) exceed the lesser of (i) the borrowing base as in effect at such time and (ii) the aggregate revolving commitments as in effect at such time, the borrowers will be required to prepay an amount equal to such excess and/or cash collateralize outstanding letters of credit. Voluntary prepayments . Subject to certain conditions, the ABL Revolver allows the borrowers to voluntarily reduce the amount of the revolving commitments and to prepay the loans without premium or penalty other than customary breakage costs for LIBOR rate contracts. Interest rates and fees . Outstanding borrowings under the ABL Revolver accrue interest at an annual rate of interest equal to (i) a base rate plus the applicable spread, as set forth below or (ii) a LIBOR rate plus the applicable spread, as set forth below. Swingline loans bear interest at a base rate plus the applicable spread. The Company will pay a commission on letters of credit issued under the ABL Revolver at a rate equal to the applicable spread for loans based upon the LIBOR rate. Level Average Aggregate Availability Base Rate Loans and Swingline Loans LIBOR Loans I <$50,000,000 1.00 % 2.00 % II > $50,000,000 but ≤ $100,000,000 0.75 % 1.75 % III >$100,000,000 0.50 % 1.50 % The Company will pay certain fees with respect to the ABL Revolver, including (i) an unused commitment fee on the undrawn portion of the credit facility of 0.25% per annum in the event that more than 50% of the commitments (excluding swingline loans) under the credit facility are utilized, and 0.375% per annum in the event that less than or equal to 50% of the commitments (excluding swingline loans) under the credit facility are utilized and (ii) customary annual administration fees and fronting fees in respect of letters of credit equal to 0.125% per annum on the stated amount of each letter of credit outstanding during each fiscal quarter. During an event of default, all loans and other obligations under the ABL Revolver may bear interest at a rate 2.00% in excess of the otherwise applicable rate of interest. Cash dominion . Commencing on the day that an event of default occurs or availability under the ABL Revolver is less than the greater of 12.5% of the total borrowing base and $12.5 million and continuing until no event of default has existed and availability has been greater than such thresholds at all times for 60 consecutive days, amounts in the Company’s deposit accounts and the deposit accounts of the guarantors (other than certain excluded accounts) will be transferred daily into a blocked account held by the administrative agent and applied to reduce the outstanding amounts under the ABL Revolver. Covenants . The ABL Revolver contains negative covenants that, among other matters, limit or restrict the ability of the Company and its subsidiaries to: create liens and encumbrances; incur additional indebtedness; merge, dissolve, liquidate or consolidate; make acquisitions, investments, advances or loans; dispose of or transfer assets; pay dividends or make other payments in respect of their capital stock; amend certain material governance documents; change the nature of the business of the borrowers and their subsidiaries; redeem or repurchase capital stock or prepay, redeem or repurchase certain debt; engage in certain transactions with affiliates; change the borrowers’ fiscal periods; and enter into certain restrictive agreements. The ABL Revolver also contains certain customary affirmative covenants and events of default, including a change of control. In addition, commencing on the day that an event of default occurs or availability under the ABL Revolver is less than the greater of 10% of the total borrowing base and $10 million and continuing until no event of default has existed and availability under the ABL Revolver has been greater than such thresholds at all times, in each case, for 30 consecutive days, the Company would be required to maintain a fixed charge coverage ratio of at least 1.0x measured for the last 12-month period. The fixed charge coverage ratio was 1.60 as of December 31, 2015. If none of the covenant triggers have occurred, the impact of falling below the fixed charge coverage ratio would not be a default but instead would limit the Company’s ability to pursue certain operational or financial transactions (e.g. acquisitions). Indenture Senior Notes . On April 25, 2013, Affinia Group Inc. issued $250 million of Senior Notes as part of the refinancing (the “Senior Notes”). The Senior Notes accrue interest at the rate of 7.75% per annum, payable semi-annually on May 1 and November 1 of each year. The Senior Notes will mature on May 1, 2021. The terms of the Indenture provide that, among other matters, the Senior Notes rank equally in right of payment to all of the Company’s and all of Affinia Group Inc.’s 100% owned current and future domestic subsidiaries (the “Guarantors”) existing and future senior debt and senior in right of payment to all of the Company’s and Guarantors’ existing and future subordinated debt. The Senior Notes are structurally subordinated to all of the liabilities and obligations of the Company’s subsidiaries that do not guarantee the Senior Notes. The Senior Notes are effectively junior in right of payment to all of the Company’s and the Guarantors’ secured indebtedness, including the Term Loans and the ABL Revolver, to the extent of the value of the collateral securing such indebtedness. The outstanding balance of the Senior Notes at December 31, 2015 was $250 million. Guarantees . The Guarantors guarantee the Company’s obligations under the Notes on a senior unsecured basis. Interest rate . Interest on the Notes accrues at a rate of 7.75% per annum. Interest on the Notes is payable in cash semiannually in arrears on May 1 and November 1 of each year, commencing on November 1, 2013. Change of Control. The indenture includes a provision whereby if a change of control occurs after the Issue Date, the Company shall make an offer to purchase all of the Notes at a price in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest to, but excluding, the date of purchase. The Company is required to send notice of such change in control no later than 30 days following any change in control. The purchase date will be no earlier than 15 days nor later than 60 days from the date of notification to the holders. Any Note not properly tendered will remain outstanding and continue to accrue interest through the original maturity date. Other covenants . The Indenture contains affirmative and negative covenants that, among other matters, limit or restrict the Company’s ability (as well as those of the Company’s subsidiaries) to: incur additional debt; provide guarantees and issue mandatorily redeemable preferred stock; pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments including the prepayment of certain indebtedness; enter into agreements that restrict distributions from restricted subsidiaries; sell or otherwise dispose of assets, including capital stock of restricted subsidiaries; enter into transactions with affiliates; create or incur liens; and merge, consolidate or sell substantially all of its assets. Events of default . The Indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the Indenture, payment defaults or acceleration of other indebtedness, failure to pay certain judgments and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the Trustee or holders of at least 25% in principal amount of the then outstanding Notes may declare the principal, premium, if any, interest and other monetary obligations on all the Notes to be due and payable immediately. Term Loan Facility On April 25, 2013, the Company entered into (i) a Term Loan B-1 in an aggregate principal amount of $200 million (“Term Loan B-1”) and (ii) a Term Loan B-2 in an aggregate principal amount of $470 million (“Term Loan B-2” and together with Term Loan B-1, collectively the “Term Loans”). Term Loan B-1 was offered at a price of 99.75%, of their face value, resulting in approximately $199 million of net proceeds for Term Loan B-1. Term Loan B-2 was offered at a price of 99.50%, of their face value, resulting in approximately $468 million of net proceeds for Term Loan B-2. The $1 million and $2 million original issue discount for the Term Loan B-1 and Term Loan B-2, respectively, will be amortized based on the effective interest rate method and included in interest expense until the Term Loans mature. The Term Loan B-1 amortizes in quarterly installments in an amount equal to 1.00% per annum, with the balance due on April 25, 2016. The Term Loan B-2 amortizes in quarterly installments in an amount equal to 1.00% per annum, with the balance due on April 25, 2020. As of December 31, 2015, $148 million principal amount of Term Loan B-1 was outstanding, net of less than a $1 million issue discount which is being amortized until the Term Loan B-1 matures and $313 million principal amount of Term Loan B-2 was outstanding, net of the $1 million issue discount which is being amortized until the Term Loan B-2 matures. In March 2016, the Company entered into a 140 million Euro term loan facility agreement with MANN + HUMMEL Inc. due December 31, 2016. Pursuant to the conditions of the term loan facility agreement, the Company may only use the proceeds for the sole purpose of repaying the amount outstanding under Term Loan B-1, which matures on April 25, 2016. Interest on the loan is 3.25% per annum and is due and payable on December 31, 2016 or earlier if the Company makes a prepayment of the loan amount pursuant to the terms of the agreement. The Company utilized the term loan facility to fully repay the outstanding balance of Term Loan B-1. Guarantees and collateral . The indebtedness, obligations and liabilities under the Term Loan Facility are unconditionally guaranteed jointly and severally on a senior secured basis by the Company and certain of its current and future U.S. subsidiaries, and are secured, subject to permitted liens and other exceptions and exclusions, by a first-priority lien on substantially all tangible and intangible assets of the borrower and each guarantor (including (i) a perfected pledge of all of the capital stock of the borrower and each direct, wholly-owned material subsidiary held by the borrower or any guarantor (subject to certain limitations with respect to foreign subsidiaries) and (ii) perfected security interests in, and mortgages on, equipment, general intangibles, investment property, intellectual property, material fee-owned real property, intercompany notes and proceeds of the foregoing) except for certain excluded assets and the collateral securing the ABL Revolver on a first priority basis, and a second-priority lien on the collateral securing the ABL Revolver on a first-priority basis. Mandatory prepayments . The Term Loan Facility requires the following amounts to be applied to prepay the Term Loans, subject to certain thresholds, exceptions and reinvestment rights: 100% of the net proceeds from the incurrence of indebtedness (other than permitted indebtedness), 100% of the net proceeds of certain asset sales (including insurance or condemnation proceeds), other than the collateral securing the ABL Revolver on a first-priority basis, and 50% of excess cash flow with stepdowns to 25% and 0% based on certain leverage targets. Mandatory prepayments will be allocated ratably between Term Loan B-1 and Term Loan B-2 and, within each, will be applied to reduce remaining amortization payments in the direct order of maturity for the immediately succeeding eight quarters and, thereafter, pro rata. Voluntary prepayments . The Company may voluntarily prepay outstanding Term Loans in whole or in part at any time without premium or penalty (other than a 1.00% premium payable until, in the case of the Term Loan B-1, six months following April 25, 2013 and, in the case of the Term Loan B-2, one year following April 25, 2013, on (i) the amount of loans prepaid or refinanced with proceeds of long-term bank debt financing or any other financing similar to such borrowings having a lower effective yield or (ii) the amount of loans the terms of which are amended to the same effect), subject to payment of customary breakage costs in the case of LIBOR rate loans. Optional prepayments of the Term Loans will be applied to the remaining installments thereof at the direction of the Company. Interest rates . Outstanding borrowings under the Term Loan Facility accrue interest at an annual rate of interest equal to (i) a base rate plus the applicable spread or (ii) a LIBOR rate plus the applicable spread. The applicable margin for borrowings under the Term Loan B-1 is 1.75% with respect to base rate borrowings and 2.75% with respect to LIBOR rate borrowings, and the applicable margin for borrowing under the Term Loan B-2 is 2.50% with respect to base rate borrowings and 3.50% with respect to LIBOR rate borrowings. The LIBOR rate is subject to a floor of 0.75% per annum with respect to Term Loan B-1 and 1.25% per annum with respect to Term Loan B-2. Overdue principal with respect to the Term Loans will bear interest at a rate 2.00% in excess of the otherwise applicable rate of interest and other overdue amounts with respect to the Term Loans will bear interest at a rate of 2.00% in excess of the rate applicable to base rate borrowings. Change of Control. The Term Loan Facility includes provisions, whereby, upon a change of control, the commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower hereunder, shall immediately and automatically become due and payable without presentment, demand, protest or other notice of any kind. Covenants . The Term Loan Facility contains negative covenants that, among other matters, limit or restrict the ability of the Company and its subsidiaries to create liens and encumbrances; incur additional indebtedness; merge, dissolve, liquidate or consolidate; make acquisitions, investments, advances or loans; dispose of or transfer assets; pay dividends or make other payments in respect of their capital stock; amend certain material governance documents; change the nature of the business of the borrower and its subsidiaries; redeem or repurchase capital stock or prepay, redeem or repurchase certain debt; engage in certain transactions with affiliates; change the borrower’s fiscal periods; and enter into certain restrictive agreements. The Term Loan Facility also contains certain customary affirmative covenants and events of default, including a change of control. Deferred Financing During the second quarter of 2013, Affinia recorded a write-off of $5 million to interest expense for unamortized deferred financing costs associated with the redemption of its Secured Notes and Subordinated Notes. Affinia also recorded during the second quarter of 2013 a write-off of $3 million to interest expense for the replacement of its asset-based credit facility with an ABL Revolver. In addition, Affinia recorded $14 million in total deferred financing costs related to the issuance of its Senior Notes and Term Loans as part of the refinancing and $1 million in total deferred financing costs associated with the ABL Revolver. The unamortized deferred financing costs are being charged to interest expense through May 2021 for the Senior Notes, through April 2020 for Term Loan B-2, through April 2018 for the ABL Revolver and through April 2016 for Term Loan B-1. The following table summarizes the deferred financing activity for the Company: (Dollars in millions) Balance at December 31, 2013 $ 18 Amortization (4 ) Write-off of unamortized deferred financing costs (1 ) Deferred financing costs 1 Balance at December 31, 2014 $ 14 Amortization (3 ) Write-off of unamortized deferred financing costs (1 ) Balance at December 31, 2015 $ 10 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. INVENTORIES Inventories are valued at the lower of cost or market. Cost is determined on the FIFO method of inventory costing for all domestic inventories and at the Company’s Poland operations or average cost basis for other non-U.S. inventories. Inventories are reduced by an allowance for slow-moving and obsolete inventories based on management’s review of on-hand inventories compared to historical and estimated future sales and usage. A summary of inventories, net is provided in the table below and excludes amounts included in “Current assets of discontinued operations” in the Consolidated Balance Sheets (Dollars in millions) At December 31, 2015 At December 31, 2014 Raw materials $ 61 $ 56 Work-in-process 18 16 Finished goods 87 71 $ 166 $ 143 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES The Company had future minimum rental commitments under non-cancelable operating leases in continuing operations of $31 million at December 31, 2015, with future rental payments of: (Dollars in millions) Operating Leases 2016 6 2017 6 2018 5 2019 5 2020 5 Thereafter 4 Total $ 31 The leases do not contain restrictions on future borrowings. There are no significant lease escalation clauses or purchase options. Rent expense from continuing operations was $8 million, $8 million and $8 million in 2015, 2014 and 2013, respectively. Various claims, lawsuits and administrative proceedings are pending or threatened against the Company and its subsidiaries, arising from the ordinary course of business with respect to commercial, intellectual property, product liability and environmental matters. Affinia believes that the ultimate resolution of the foregoing matters will not have a material effect on the Company’s financial condition, results of operations or liquidity. The Company has various accruals for civil liability, including product liability and other costs. If there is a range of equally probable outcomes, Affinia accrues at the lower end of the range. The Company had $2 million accrued as of both December 31, 2015 and 2014. These amounts are reflected in “Other accrued expenses” in the Consolidated Balance Sheets. There are no recoveries expected from third parties associated with outstanding or settled claims. As previously disclosed, the Company conducted a review of certain allegations arising in connection with business operations involving its subsidiaries in Poland and Ukraine. The allegations raised issues involving potential improper payments in connection with governmental approvals, permits, or other regulatory areas and possible conflicts of interest. The Company’s review was supervised by the Audit Committee of Affinia’s Board of Directors and conducted with the assistance of outside professionals. Affinia voluntarily self-reported on these matters to the U.S. Department of Justice and the U.S. Securities and Exchange Commission and cooperated fully with the U.S. government. The U.S. Department of Justice has advised that it has decided to decline to prosecute the Company in this matter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES The components of the income tax provision (benefit) from continuing operations are as follows: (Dollars in millions) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Current: U.S. federal $ — $ — $ — U.S. state and local — — — Non-United States 10 5 15 Total current 10 5 15 Deferred: U.S. federal and state 5 15 (7 ) Non-United States 5 (12 ) 6 Total deferred 10 3 (1 ) Income tax provision $ 20 $ 8 $ 14 The income tax provision was calculated based upon the following components of income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax: (Dollars in millions) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 United States $ (40 ) $ (23 ) $ (64 ) Non-United States 61 61 55 Income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax $ 21 $ 38 $ (9 ) Deferred tax assets (liabilities) consisted of the following: (Dollars in millions) A t r 2015 A t r 2014 Deferred tax assets: Net operating and other loss carryforwards $ 123 $ 128 Inventory reserves 4 3 Expense accruals 23 25 Depreciation & amortization — 2 Other 4 7 Subtotal 154 165 Valuation allowance (31 ) (25 ) Deferred tax assets 123 140 Deferred tax liabilities: Depreciation & amortization 1 — Foreign earnings 9 24 Other liabilities — 1 Deferred tax liabilities 10 25 Net deferred tax assets $ 113 $ 115 Balance Sheet Presentation: Current deferred taxes — 19 Deferred income taxes 113 97 Deferred employee benefits and other noncurrent liabilities — (1 ) Net deferred tax assets $ 113 $ 115 Valuation allowances are provided for deferred tax assets whenever the realization of the assets is not deemed to meet a more likely than not standard. Accordingly, valuation allowances have been provided for net operating losses and other loss carryforwards in certain non-U.S. countries and U.S. states. In addition there are valuation allowances provided on certain U.S. credit carryforwards. U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. This amount becomes taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of such temporary differences totaled $46 million at December 31, 2015. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable. The effective income tax rate differs from the U.S. federal income tax rate for the following reasons: Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Increases (reductions) resulting from: State and local income taxes, net of federal income tax benefit (5.9 ) (2.6 ) 22.2 Valuation allowance 27.4 2.6 (22.2 ) Non-U.S. income (51.7 ) (26.3 ) 100.0 Foreign restructuring — (26.3 ) — U.S. Permanent Differences (1) 149.6 31.6 (233.3 ) Unrecognized Tax Benefits (2) — (18.4 ) (77.8 ) Unremitted Earnings (59.2 ) 26.3 22.2 Effective income tax rate 95.2 % 21.9 % -153.9 % (1) The U.S. Permanent Differences affecting the tax rate were primarily the result of deemed distributions from foreign subsidiaries. (2) The 2013 tax rate was negatively impacted by the recognition of an uncertain tax position resulting from an unfavorable ruling impacting the Company’s international operations. At the end of 2015, federal domestic net operating loss carryforwards were $288 million. Of these, $9 million expire in 2025, $36 million expire in 2026, $33 million expire in 2027, $74 million expire in 2028, $60 million expire in 2029, $31 million expire in 2030, $20 million expire in 2031, $10 million expire in 2032 and $15 million expire in 2034. At the end of 2015, state domestic net operating loss carryforwards were estimated to be $277 million, the majority of which expire between 2024 and 2035. At the end of 2015, foreign net operating loss carryforwards were $13 million and expire as follows: $1 million in 2016, $2 million in 2017, $8 million in 2018, $1 million in 2019 and $1 million with no expiration date. Realization of the tax benefits associated with loss carryforwards is dependent on generating sufficient taxable income prior to their expiration. The following table summarizes the activity related to the Company’s unrecognized tax benefits: (Dollars in millions) Balance at January 1, 2013 $ 1 Increases to tax positions 7 Decreases to tax positions — Balance at January 1, 2014 8 Increases to tax positions — Decreases to tax positions (7 ) Balance at January 1, 2015 1 Increases to tax positions — Decreases to tax positions — Balance at December 31, 2015 $ 1 Included in the balance of unrecognized tax benefits at December 31, 2015, is $1 million of tax benefits that, if recognized, would affect the effective tax rate. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties as part of the income tax provision. As of December 31, 2015, the Company’s accrual for interest and penalties is less than $1 million, and its accrual for income tax expense is $1 million. The decrease in 2014 is attributable to a recent ruling impacting the Company’s international operations. The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. For jurisdictions in which the Company transacts significant business, tax years ending December 31, 2004 and later remain subject to examination by tax authorities. The Company does not anticipate any material change in the total amount of unrecognized tax benefits to occur within the next twelve months. |
Accounts Receivable Factoring
Accounts Receivable Factoring | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable Factoring | 10. ACCOUNTS RECEIVABLE FACTORING Affinia has agreements with third party financial institutions to factor certain receivables on a non-recourse basis. The terms of the factoring arrangements provide for the factoring of certain U.S. Dollar-denominated or Canadian Dollar-denominated receivables, which are purchased at the face value amount of the receivable discounted at the annual rate of LIBOR plus a spread on the purchase date. The amount factored is not contractually defined by the factoring arrangements and Affinia’s use varies each month based on the amount of underlying receivables and the cash flow needs of the Company. Years Ended December 31, (Dollars in millions) 2015 2014 Gross accounts receivable factored $ 360 $ 467 Expenses associated with factoring of receivables 3 4 Accounts receivable factored by Affinia are accounted for as a sale and removed from the balance sheet at the time of factoring, with the cost associated with the factoring program presented in “Other income and expense, net” in the Consolidated Statements of Operations. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 11. GOODWILL Goodwill as of both December 31, 2015 and 2014 was $3 million. All of the Company’s recorded goodwill relates to the Filtration segment. In accordance with ASC Topic 805-740, “Business Combinations – Income Taxes” There has been no activity with respect to the goodwill balance during the years ended December 31, 2015 or 2014. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | 12. OTHER INTANGIBLE ASSETS As of December 31, 2015 and 2014, Affinia’s other intangible assets primarily consisted of trade names, customer relationships, and developed technology. Affinia recorded $1 million, less than $1 million and $3 million of intangible asset amortization during the years ended December 31, 2015, 2014 and 2013, respectively, which includes $1 million in 2013 related to intangible assets associated with operations that are reflected as a component of discontinued operations. The Company anticipates amortization of $1 million per year for 2016 through 2021 on a continuing basis. Amortization expense is calculated on a straight line basis over 5 to 20 years. For the goodwill and intangible assets associated with the 2004 acquisition, in accordance with ASC 805-740, the tax benefit for the excess of tax-deductible goodwill over the reported amount of goodwill was applied first to reduce the acquisition related goodwill to zero. The carrying amount of goodwill associated with the 2004 acquisition was reduced to zero in 2013 and the remaining tax benefit is being applied to reduce the basis of intangible assets purchased in the 2004 acquisition. The tax benefit for the excess of tax deductible goodwill reduced intangible assets by approximately $7 million and $6 million during 2015 and 2014, respectively. Trade names are tested for impairment annually as of December 31 of each year by comparing their fair value to their carrying values. The fair value for each trade name was established based upon a royalty savings approach. A rollforward of the other intangibles and trade names for 2014 and 2015 is shown below: (Dollars in millions) Trade Names Customer Relationships Developed Technology/ Other Total Balance at December 31, 2013 30 27 3 60 Amortization — (1 ) — (1 ) Tax benefit reductions (3 ) (3 ) — (6 ) Balance at December 31, 2014 $ 27 $ 23 $ 3 $ 53 Amortization — (1 ) — (1 ) Tax benefit reductions (4 ) (2 ) (1 ) (7 ) Balance at December 31, 2015 $ 23 $ 20 $ 2 $ 45 Accumulated amortization for the intangibles was $44 million and $43 million as of as of December 31, 2015 and 2014, respectively. The weighted average amortization period by class of intangible was the following: 19 years for customer relationships and 18 years for developed technology and other intangibles. |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plan | 13. STOCK INCENTIVE PLAN 2005 Stock Plan On July 20, 2005, Holdings adopted the Affinia Group Holdings Inc. 2005 Stock Incentive Plan, (the “2005 Stock Plan” or the “Plan”). The 2005 Stock Plan permits the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units (“RSUs”) and other stock-based awards to employees, directors or consultants of Holdings and its affiliates. The Plan initially reserved a maximum of 227,000 shares of common stock that may be subject to awards. On August 25, 2010, Holdings increased the maximum number of shares of common stock that may be subject to awards from 227,000 to 300,000. On December 2, 2010, Holdings increased the number of shares of common stock that may be subject to awards from 300,000 to 350,000. The number of shares issued or reserved pursuant to the 2005 Stock Plan (or pursuant to outstanding awards) is subject to adjustment as a result of mergers, consolidations, reorganizations, stock splits, stock dividends and other dilutive changes in the common stock. Shares of common stock covered by awards that terminate or lapse and shares delivered by a participant or withheld to pay the minimum statutory withholding rate, in each case, will subsequently be available for grant under the 2005 Stock Plan. Administration . The 2005 Stock Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors of Holdings. The Committee has authority to establish the terms and conditions of any award, as well as to waive any such terms and conditions at any time (including, without limitation, accelerating or waiving any vesting conditions or payment dates). The Committee is authorized to interpret the 2005 Stock Plan, to establish, amend and rescind any rules and regulations relating to the Plan and to make any other determinations that it, in good faith, deems necessary or desirable for the administration of the Plan and may delegate such authority as it deems appropriate. The Committee may correct any defect or supply an omission or reconcile any inconsistency in the 2005 Stock Plan in the manner and to the extent the Committee deems necessary or desirable and any decision of the committee in the interpretation and administration of the Plan shall lie within its sole and absolute good faith discretion and shall be final, conclusive and binding on all parties concerned. Options . The Committee determines the exercise price for each option, except that the incentive stock options must have an exercise price that is at least equal to the fair market value of the Company’s common stock on the date the option is granted. An option holder may exercise an option by written notice and payment of the exercise price (i) in cash or its equivalent, (ii) by the surrender of a number of shares of common stock already owned by the option holder for at least six months (or such other period established by the committee) with a fair market value equal to the exercise price, (iii) if there is a public market for the shares, subject to rules established by the committee, through the delivery of irrevocable instructions to a broker to sell shares obtained upon the exercise of the option and to deliver to Holdings an amount out of the proceeds of the sale equal to the aggregate exercise price for the shares being purchased or (iv) by another method approved by the committee. Stock Appreciation Rights . The Committee may grant stock appreciation rights independent of or in connection with an option. The exercise price per share of a stock appreciation right shall be an amount determined by the Committee, except that the exercise price must be at least equal to the fair market value of the Company’s common stock on the date the stock appreciation right is granted. Generally, each stock appreciation right shall entitle a participant upon exercise to an amount equal to (i) the excess of (1) the fair market value on the exercise date of one share of common stock over (2) the exercise price, multiplied by (ii) the number of shares of common stock covered by the stock appreciation right. Payment shall be made in common stock or in cash, or partly in common stock and partly in cash, as determined by the Committee. Other Stock-Based Awards . The Committee may grant awards of RSUs, rights to purchase stock, restricted stock and other awards that are valued in whole or in part by reference to, or are otherwise based on the fair market value of, shares of common stock. The other stock-based awards will be subject to the terms and conditions established by the Committee. Transferability . Unless otherwise determined by the committee, awards granted under the 2005 Stock Plan are not transferable other than by will or by the laws of descent and distribution. Change of Control . In the event of a “change of control” (as defined in the 2005 Stock Plan), the Committee may provide for (i) the termination of an award upon the consummation of the change of control, but only if the award has vested and been paid out or the participant has been permitted to exercise an option in full for a period of not less than 30 days prior to the change of control, (ii) the acceleration of all or any portion of an award, (iii) payment in exchange for the cancellation of an award and/or (iv) the issuance of substitute awards that would substantially preserve the terms of any awards. Amendment and Termination . Holdings’ Board of Directors may amend, alter or discontinue the 2005 Stock Plan in any respect at any time, but no amendment may diminish any of the rights of a participant under any awards previously granted, without his or her consent. Management or Director Stockholders Agreement . All shares issued under the plan will be subject to a management stockholders agreement or a director stockholders agreement, as applicable. Restrictive Covenant Agreement . Unless otherwise determined by Holdings’ Board of Directors, all award recipients will be obligated to sign the standard Confidentiality, Non-Competition and Proprietary Information Agreement which includes restrictive covenants regarding confidentiality, proprietary information and a one year period restricting competition and solicitation of the Company’s clients, customers or employees. In the event a participant breaches these restrictive covenants, any exercise of, or payment or delivery pursuant to, an award may be rescinded by the Committee in its discretion in which event the participant may be required to pay to the Company the amount of any gain realized in connection with, or as a result of, the rescinded exercise, payment or delivery. The table below summarizes the 2005 Stock Plan balances for the RSUs, stock options, deferred compensation shares and stock awards. At December 31, 2015 2014 Restricted stock units 190,478 185,365 Stock options 15,383 22,568 Deferred compensation shares 23,358 28,964 Stock award 163 163 Shares available to award 120,618 112,940 Number of shares of common stock subject to awards 350,000 350,000 Stock Options During 2015, 12,383 previously awarded and vested stock options were exercised at a per share price of $62.87. The Company received proceeds of approximately $1 million associated with these stock options exercises. Pursuant to the terms of the 2005 Stock Plan, all unexercised options expired on August 1, 2015. Accordingly, there are no vested or unvested stock options outstanding at December 31, 2015. Stock options are accounted for under the fair value method of accounting using a Black-Scholes model to measure stock-based compensation expense at the date of grant. The fair value of the stock option grants is expensed over the vesting period. The Company reduces the overall compensation expense by a turnover rate consistent with historical trends. There were no stock options granted or stock-based compensation expense recognized during the years ended December 31, 2013, 2014 or 2015. A rollforward of outstanding stock options for the years ended December 31, 2013, 2014 and 2015 is as follows: Options Outstanding at January 1, 2013 23,835 Forfeited/expired (480 ) Outstanding at December 31, 2013 23,355 Forfeited/expired (3,787 ) Outstanding at December 31, 2014 19,568 Exercised (12,383 ) Forfeited/expired (7,185 ) Outstanding at December 31, 2015 — Restricted Stock Units The RSUs are governed by the 2005 Stock Plan, with the terms and conditions of vesting established by a Restricted Stock Unit Award Agreement with each holder. In November 2014, the Compensation Committee of Holdings Board of Directors granted awards consisting of 54,009 new RSUs and approved the modification of certain outstanding RSU awards. At the time of modification, there were 201,977 RSUs outstanding, of which 117,231 were subject to modification. In connection with the award modification, the previously issued RSUs were cancelled and, concurrently, new RSU awards were granted to each holder, with each holder receiving the same number of awards held immediately prior to the cancellation of the previous awards. The remaining 84,746 RSUs were not modified and remained outstanding under the same terms and conditions in effect prior to November 2014. Prior to the modification and the grant of new awards described above, all but 10,593 of the then outstanding RSUs were subject to vesting provisions that were entirely performance and market based. Pursuant to the vesting conditions of the pre-modification awards, the RSUs would vest if (i) the RSU holder remains employed with Holdings on the date that either of the following vesting conditions occurs and (ii) either of the following vesting conditions occurs on or prior to the date on which Cypress ceases to hold any remaining Holdings common stock: · Cypress Scenario—Cypress has received aggregate transaction proceeds in cash or marketable securities (not subject to escrow, lock-up, trading restrictions or claw-back) with respect to the disposition of more than 50% of its common equity interests in Holdings in an amount that represents a per-share equivalent value that is greater than or equal to two times the average per share price paid by Cypress for its aggregate common equity investment in Holdings; or · IPO Scenario—Holdings’ common stock trades on a public stock exchange at an average closing price of $225 (as adjusted for stock splits) over a 60 consecutive trading day period. Since the original issue date, the Brake North America and Asia group was distributed on November 2012 and a dividend recapitalization transaction was undertaken in April 2013. These two actions had an impact on the calculation of the overall return to the Holdings’ shareholders. In December 2013, the Company’s Board of Directors approved reducing the Cypress Scenario and IPO Scenario vesting points as a result of the aforementioned actions. Accordingly, the vesting points were reduced from $225 to $159.30 under the IPO Scenario and from $200 to $141.60 under the Cypress Scenario. Under the terms of the November 2014 RSU modification, previously issued RSUs for certain holders were cancelled and concurrently replaced with an equal number of awards with different vesting conditions. As described above, prior to modification, the vesting conditions of the awards were entirely performance and market based, with ultimate vesting contingent on achievement of one of two scenarios. Under the terms of the modified awards, 50% of the awards are performance and market based, with vesting contingent upon achievement of either the Cypress Scenario or IPO Scenario, while the remaining 50% are time-based with vesting occurring in four equal annual installments on either December 31 in the case of one holder, the first vesting of which occurred on December 31, 2014, or January 1 in the case of other holders, the first vesting of which occurred on January 1, 2015. Pursuant to the terms of the Restricted Stock Unit Award Agreements associated with the modified awards, for the time based awards, upon vesting, 40% of the vested shares are promptly redeemed by Holdings at the then fair market value and the remaining 60% remain in place as issued common shares. At the same time, Holdings issues to each holder a number of additional performance and market based RSUs equal to the number of shares redeemed. In accordance with ASC Topic 718, “Compensation – Stock Compensation” Under ASC 718, a company must determine if awards issued under stock-based compensation plans should be accounted for as equity-classified awards or liability-classified awards. Based on the terms of the time-based RSUs, it was determined that each RSU should be bifurcated into an equity-classified RSU and a liability-classified RSU based on method of settlement. The components of the time-based RSUs that will be settled via issuance of shares are accounted for as equity-classified awards as ultimate vesting of the RSUs is achieved through fulfilling a service condition. Accordingly, the expense to be recorded over the requisite service period was based on the grant-date fair value of the RSUs. The component of the time-based RSUs that will be redeemed for cash will be accounted for as a liability-classified award due to the cash settlement feature. In accordance with ASC 718, the value of the liability awards will be marked-to-market each reporting period. Stock-based compensation expense, which was recorded as a component of “Selling, general and administrative expenses” in the Consolidated Statements of Operations, was approximately $3 million during the year ended December 31, 2015. During 2014, there were 61,071 new RSUs granted to employees, which includes the 54,009 new RSUs discussed above. During 2013, 142,861 RSUs either expired or were forfeited. In connection with the closure of the corporate headquarters, in Ann Arbor, Michigan, several employees elected to forfeit 92,514 unvested RSUs in exchange for a payment equal to 30% of the anticipated value of such RSU holder’s RSUs upon the occurrence of a Cypress Scenario vesting event. In connection with this exchange, the Company recorded approximately $3 million of expense during the year ended December 31, 2014, which is included as a component of “Selling, general and administrative expenses” in the Consolidated Statements of Operations. During 2015, 22,856 RSUs were granted, of which 20,356 were performance and market based and 2,500 were time-based, with vesting occurring in four equal annual installments beginning January 1, 2016. The fair value of the time-based awards was $164.86 per share. Stock-based compensation expense, which was recorded as a component of “Selling, general and administrative expenses” in the Consolidated Statements of Operations, was $3 million for the years ended December 31, 2015 and 2014. As of December 31, 2015, 159,273 RSUs had been awarded and remained outstanding, 98,913 of such outstanding RSUs were performance and market-based and 60,360 were time-based. The fair value of the performance and market-based RSUs was determined using a market-based Monte Carlo simulation model as of the date of the 2014 modifications. Management also applied the same fair value to the performance and market-based RSUs awarded during the year ended December 31, 2015 as it was determined that the simulation model produced a fair value that within the range of indicative per share value based on preliminary calculations of merger consideration to be paid by MANN + HUMMEL as discussed in Note 1, “Description of Business and Basis of Presentation.” The Company’s weighted-average Monte Carlo fair value assumptions include: Cypres s IP O Effective term 0.04 years 0.24 years Fair value of an RSU $ 173.66 $ 169.30 Expected expense (Dollars in millions) $ 23 $ 23 It is estimated that the fair value of the time based RSUs using a market-based Monte Carlo simulation model on the date of the grant was approximately $15 million. In the event that either of the performance or market-based conditions (Cypress Scenario or IPO Scenario) are met, the fair value of the RSUs will be recognized in stock-based compensation expense either (i) pro rata over the requisite service term including a cumulative catch-up related to service provided through the date the performance condition is met or (ii) in full once the respective market-based condition is met or (iii) in full if the requisite service period has already passed when the performance condition is met. If the vesting condition is met on the 98,913 performance and market-based RSUs, the amount of expense the Company would have to recognize is $17 million under the Cypress scenario or $17 million under the IPO scenario. A rollforward of the outstanding RSU awards for the years ended December 31, 2013, 2014 and 2015 is as follows: RSUs Outstanding at January 1, 2013 242,000 Granted 106,369 Forfeited/expired (142,861 ) Outstanding at December 31, 2013 205,508 Granted 61,777 Cancelled (157,963 ) Grant of modified awards 157,963 Vested (1,766 ) Forfeited/expired (81,214 ) Outstanding at December 31, 2014 184,305 Granted 22,856 Settled (13,065 ) Vested (20,699 ) Forfeited/expired (14,124 ) Outstanding at December 31, 2015 159,273 At December 31, 2015, the total grant date fair value associated with the equity classified RSUs that has yet to be recognized in earnings is $4 million. This amount will be recognized ratably over the remaining vesting period, which is from January 1, 2016 to January 1, 2018. The fair value of the liability classified RSUs that has yet to be recognized in earnings is $3 million. While this amount will be recognized ratably over the remaining vesting period similar to the equity classified RSUs, the ultimate amount recognized in earnings will likely be different than the December 31, 2015 value as the outstanding awards will be remeasured to fair value each reporting period until the awards are settled in accordance with ASC 718. Deferred Compensation Plan The Company began offering a deferred compensation plan in 2008 that permitted certain employees to defer receipt of all or a portion of the amounts awarded under the non-equity incentive compensation plan. All amounts deferred were treated as being notionally invested in the common stock of Holdings. As such, the accounts under the plan reflect investment gains and losses associated with an investment in the Holdings common stock. The Company matches 25% of the deferral amount with an additional notional investment in common stock of Holdings, which is subject to vesting as provided in the plan. This plan was suspended in 2013. Deferred compensation expense, which is recorded as a component of “Selling, general and administrative expenses” in the Consolidated Statements of Operations, was zero, less than a million and $2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 14. PROPERTY, PLANT AND EQUIPMENT The following table breaks out the property, plant and equipment in further detail: December 31, (Dollars in millions) 2015 2014 (a) Land $ 7 $ 7 Buildings and building fixtures 47 43 Machinery and equipment 174 158 Software 15 14 Construction in progress 17 20 Property, plant and equipment, gross 260 242 Less: Accumulated depreciation (145 ) (133 ) Property, plant and equipment, net $ 115 $ 109 (a) Excludes property, plant and equipment included in “Current assets of discontinued operations” in the Consolidated Balance Sheets. Depreciation is recognized on a straight-line basis over an asset’s estimated useful life. The depreciation expense from continuing operations was $16 million, $16 million, and $15 million for 2015, 2014, and 2013, respectively. |
Other Accrued Expenses
Other Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Expenses | 15. OTHER ACCRUED EXPENSES The following table breaks out the other accrued expenses in further detail: December 31, (Dollars in millions) 2015 2014 Taxes other than income taxes $ 6 $ 10 Interest payable 3 3 Return reserve 4 5 Accrued taxes payable 5 3 Accrued legal and professional fees 2 3 Accrued defective product 1 1 Accrued selling and marketing 5 2 Accrued freight 1 2 Accrued commissions expense — 1 Accrued workers compensation 1 — Accrued restructuring 1 3 Other 15 10 Other accrued expenses $ 44 $ 43 The other accrued expenses primarily consist of accrued utilities and other miscellaneous accruals. A reconciliation of the changes in return reserves is presented in the following table. Years Ended December 31, (Dollars in millions) 2015 (2) 2014 (2) 2013 (1)(2) Beginning balance January 1 $ 5 $ 6 $ 8 Amounts charged to revenue 6 6 19 Returns processed (7 ) (7 ) (15 ) Classified to discontinued operations — — (6 ) Ending balance December 31 $ 4 $ 5 $ 6 (1) Includes the Chassis group, which is classified as discontinued operations that had amounts charged to revenue of $9 million in 2013 and returns processed of $6 million in 2013. The return reserve as of December 31, 2013 excludes $6 million in the Chassis group, which is classified in current liabilities of discontinued operations. (2) Excludes the ASA group, which is classified as discontinued operations as the amounts were immaterial for 2015, 2014 and 2013. |
Restructuring of Operations
Restructuring of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring of Operations | 16. RESTRUCTURING OF OPERATIONS Affinia’s restructuring activities, as described below, were undertaken to execute management’s strategy, streamline operations and to ultimately achieve net cost reductions. Costs related to these restructuring activities are reflected within “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The restructuring charges consist of employee termination costs, other exit costs and impairment costs. Severance costs are being accounted for in accordance with ASC Topic 420, “ Exit or Disposal Cost Obligations Compensation—Nonretirement Postemployment Benefits The following table summarizes the restructuring charges and activity for the Company: (Dollars in millions) Total Balance at December 31, 2013 $ 5 Charges to expense: Employee termination benefits 8 Reductions: Cash payments (10 ) Balance at December 31, 2014 $ 3 Charges to expense: Employee termination benefits — Reductions: Cash payments (2 ) Balance at December 31, 2015 $ 1 The following table shows the restructuring expenses by reportable segment: (Dollars in millions) 2015 2014 2013 Filtration $ — $ 1 $ — Corporate, eliminations and other — 6 6 Total from continuing operations $ — $ 7 $ 6 Discontinued operations — 1 — Total $ — $ 8 $ 6 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. RELATED PARTY TRANSACTIONS Mr. John M. Riess, one of the Company’s Board members, is the parent of J. Michael Riess, who is currently employed with Genuine Parts Company (NAPA) as vice president and general manager of southeast division. NAPA is the Company’s largest customer as a percentage of total net sales from continuing operations. NAPA accounted for 34%, 33% and 33% of the Company’s total net sales from continuing operations for the years ended December 31, 2015, 2014 and 2013, respectively. See Note 4, “Discontinued Operations,” for additional related party disclosure associated with the sale of Pellegrino and Automotiva. |
Venezuelan Operations
Venezuelan Operations | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Venezuelan Operations | 18. VENEZUELAN OPERATIONS In accordance with U.S. GAAP, effective January 1, 2010, the Company began accounting for Venezuela as a highly inflationary economy because the three-year cumulative inflation rate for Venezuela using the blended Consumer Price Index (which is associated with the city of Caracas) and the National Consumer Price Index (developed commencing in 2008 and covering the entire country of Venezuela) exceeded 100%. Accordingly, effective January 1, 2010, Affinia’s Venezuelan subsidiary used the U.S. Dollar as its functional currency. The financial statements of this subsidiary must be re-measured into the Company’s reporting currency (U.S. Dollar) and future exchange gains and losses from the re-measurement of monetary assets and liabilities are reflected in current earnings, rather than exclusively in the equity section of the balance sheet, until such time as the economy is no longer considered highly inflationary. The local currency in Venezuela is the Bolivar Fuerte (“VEF”). In 2013, the Venezuelan government authorized certain companies that operate in designated industry sectors to exchange a limited volume of VEFs for U.S. Dollars at a bid rate established via weekly auctions under what is known as SICAD 1. SICAD 1 auctions began in October 2013. However, SICAD 1 auctions are not indicative of a free market exchange as only designated industries may bid into individual auctions and the highest bids are not always recognized by the Venezuelan government. U.S. Dollars obtained through the SICAD 1 auctions can only be used to fund future import raw material purchases. In March 2014, another currency exchange mechanism (SICAD 2) became effective. SICAD 2 is intended to more closely resemble a market-driven exchange rate than the rates provided by Venezuela’s other regulated exchange mechanisms (i.e. the official rate and the SICAD 1 rate). Thus, as of March 31, 2014, entities were able to possibly convert VEFs at one of three legal exchange rates: official rate of 6.3 VEF to 1 U.S. Dollar, SICAD 1 rate of 10.7 VEF to 1 U.S. Dollar based on closing rate at last auction, and SICAD 2 rate of 50.86. As a result of the multiple exchange rates available to settle transactions, at March 31, 2014, management reevaluated the exchange rates previously used for re-measurement, which had been the official rate of 6.3 VEF to 1 U.S. Dollar. While substantially all of the Company’s import transactions for purchases of inventory had been pre-approved by the Venezuelan government at the official rate of 6.3 VEF to 1 U.S. Dollar, the Venezuelan government had not settled these transactions with vendors since November 2013. This, along with the introduction of the SICAD 1 and SICAD 2 market mechanisms, raised considerable doubts about the ability to ultimately settle transactions at the official rate in the future. Additionally, legislation enacted by the Venezuelan government in 2014 indicated that foreign investments are subject to the SICAD 1 rate rather than the official rate. While not the determinative factor, management viewed the passing of this legislation as a critical component in its assessment of the most representative rate to use for re-measurement purposes at March 31, 2014. Given the uncertainty of the exchange markets and the ultimate rate at which transactions may settle in the future, as well as consideration of the aforementioned legislation that was enacted earlier in 2014, the Company recorded a one-time devaluation of $7 million in the first quarter of 2014, which represented a move from the official rate to the SICAD 1 rate of 10.7 VEF to 1 U.S. Dollar. Of the $7 million devaluation charge, $5 million was recorded in the Filtration segment and $2 million was recorded in the former ASA segment. For the Filtration segment and the former ASA segment, respectively, this devaluation is reflected in “Other income and expenses, net” and “(Loss) income from discontinued operations, net of tax” in the Consolidated Statements of Operations. In the fourth quarter of 2014, the Company recorded an immaterial devaluation to reflect the movement in the SICAD1 rate from 10.7 VEF to 12.0 VEF to 1 U.S. Dollar. During the first quarter of 2015, management continued to apply the rate of 12.0 VEF to 1 U.S. Dollar. However, in February 2015, the Marginal Currency System (“Simadi”) mechanism was introduced and implemented as part of law, resulting in the elimination of the SICAD 2 rate. The Simadi rate is a free market exchange where the rate is derived from daily private bidders and buyers exchanging offers through authorized agents and approved and published by the Venezuelan Central Bank. To date, the Company has had limited participation in the Simadi markets as a result of successful participation in multiple SICAD1 auctions. During the second quarter of 2015, the Company recorded an immaterial devaluation to reflect the movement in the SICAD 1 rate from 12.0 VEF to 12.8 VEF to 1 U.S. Dollar as a result of management’s successful participation in a SICAD 1 auction at a rate of 12.8 VEF to 1 U.S. Dollar, which was a 6.7% depreciation over the last auction held in the fourth quarter of 2014. During the third quarter of 2015, the Company recorded another immaterial devaluation to reflect the movement of the SICAD 1 rate from 12.8 VEF to 13.5 VEF to 1 U.S. Dollar as a result of the most recent SICAD 1 auction clearing rate. Management will continue to monitor the exchange rate mechanism in Venezuela, as well as the Company’s ability to continue to successfully access U.S. Dollar at a SICAD 1 rate, to determine whether a different exchange rate should be used in future periods, which would result in further devaluation charges being recorded. In 2015, the Company’s Venezuelan subsidiaries represented approximately 12% of the Company’s consolidated net sales. The Venezuelan subsidiaries have total assets and liabilities of less than 10% of the Company’s total consolidated assets and liabilities at December 31, 2015. In February 2016, the Venezuelan government devalued its currency and changed its official and most preferential exchange rate, which will continue to be used for purchases of certain essential goods, to 10 VEF per U.S. dollar from 6.3. The Venezuelan government said it will reduce its three-tier system of exchange rates to two tiers by eliminating the SICAD 1 rate, which last sold US dollars for 13.5 VEF per U.S. dollar. The government also said that beginning on February 18, 2016 the SIMADI exchange rate will be allowed to float freely beginning at a rate of approximately 203 VEF to the U.S. dollar. Management will continue to monitor the environment in Venezuela to determine whether further devaluation charges are required. At this time, management does not believe that the foreign exchange limitations or restrictions will have a material impact on the Company’s liquidity, cash flow or debt covenants. |
Financial Information for Guara
Financial Information for Guarantors and Non-Guarantors | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Financial Information for Guarantors and Non-Guarantors | 19. FINANCIAL INFORMATION FOR GUARANTORS AND NON-GUARANTORS Holdings (presented as “Parent” in the following schedules), through its wholly-owned subsidiary, Affinia (presented as “Issuer” in the following schedules), issued $250 million of Senior Notes on April 25, 2013. As of December 31, 2015, there were $250 million of Senior Notes outstanding. The notes were offered only to qualified institutional buyers and certain persons in offshore transactions The Senior Notes are fully, irrevocably, unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Company’s current and future domestic subsidiaries (the “Guarantors”). The Senior Notes are general obligations of the Issuer and guaranteed by the Parent and the Guarantors. The following information presents Guarantor Condensed Consolidating Statements of Operations for the years ended December 31, 2015, December 31, 2014 and December 31, 2013, Guarantor Condensed Consolidating Statements of Comprehensive Income for the years ended December 31, 2015, December 31, 2014 and December 31, 2013, Guarantor Condensed Consolidating Balance Sheets as of December 31, 2015 and December 31, 2014 and Guarantor Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2015, December 31, 2014 and December 31, 2013 of (i) the Parent, (ii) the Issuer, (iii) the Guarantors, (iv) the Non-Guarantors, and (v) eliminations to arrive at the information for the Company on a consolidated basis. Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Operations For the Year Ended December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net sales $ — $ — $ 603 $ 442 $ (146 ) $ 899 Cost of sales — — (491 ) (339 ) 146 (684 ) Gross profit — — 112 103 — 215 Selling, general and administrative expenses — (46 ) (50 ) (36 ) — (132 ) Operating (loss) profit — (46 ) 62 67 — 83 Other income and expense, net — (3 ) (2 ) (2 ) — (7 ) Interest expense — (51 ) — (4 ) — (55 ) (Loss) income from continuing operations before income tax provision and equity in (loss) income, net of tax — (100 ) 60 61 — 21 Income tax provision — (3 ) (2 ) (15 ) — (20 ) Equity in (loss) income, net of tax (72 ) 31 (27 ) — 68 — Net (loss) income from continuing operations (72 ) (72 ) 31 46 68 1 Loss from discontinued operations, net of tax — — — (73 ) — (73 ) Net (loss) income $ (72 ) $ (72 ) $ 31 $ (27 ) $ 68 $ (72 ) Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net (loss) income $ (72 ) $ (72 ) $ 31 $ (27 ) $ 68 $ (72 ) Other comprehensive (loss) income, net of tax: Pension liability adjustment (1 ) (1 ) — (1 ) 2 (1 ) Change in fair value of interest rate swaps (4 ) (4 ) — — 4 (4 ) Reclassification into earnings from interest rate swaps 2 2 — — (2 ) 2 Change in fair value of derivatives 1 1 — — (1 ) 1 Reclassification into earnings from derivatives (1 ) (1 ) — — 1 (1 ) Change in foreign currency translation adjustments 7 7 — 7 (14 ) 7 Total other comprehensive income 4 4 — 6 (10 ) 4 Total comprehensive (loss) income $ (68 ) $ (68 ) $ 31 $ (21 ) $ 58 $ (68 ) Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Operations For the Year Ended December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net sales $ — $ — $ 684 $ 444 $ (158 ) $ 970 Cost of sales — — (539 ) (345 ) 158 (726 ) Gross profit — — 145 99 — 244 Selling, general and administrative expenses — (39 ) (68 ) (36 ) — (143 ) Operating (loss) profit — (39 ) 77 63 — 101 Other income and expense, net — (3 ) (1 ) (3 ) — (7 ) Interest expense — (55 ) — (1 ) — (56 ) (Loss) income from continuing operations before income tax provision and equity in income (loss), net of tax — (97 ) 76 59 — 38 Income tax provision — (8 ) — — — (8 ) Equity in income (loss), net of tax 81 186 84 — (351 ) — Net income (loss) from continuing operations 81 81 160 59 (351 ) 30 Income from discontinued operations, net of tax — — 26 25 — 51 Net income (loss) $ 81 $ 81 $ 186 $ 84 $ (351 ) $ 81 Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net income (loss) $ 81 $ 81 $ 186 $ 84 $ (351 ) $ 81 Other comprehensive income (loss), net of tax: Pension liability adjustment 1 1 — 1 (2 ) 1 Change in fair value of interest rate swaps (8 ) (8 ) — — 8 (8 ) Reclassification into earnings from interest rate swaps 2 2 — 2 (4 ) 2 Change in foreign currency translation adjustments (28 ) (28 ) — (28 ) 56 (28 ) Total other comprehensive (loss) income (33 ) (33 ) — (25 ) 58 (33 ) Total comprehensive income (loss) $ 48 $ 48 $ 186 $ 59 $ (293 ) $ 48 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Operations For the Year Ended December 31, 2013 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net sales $ — $ — $ 628 $ 426 $ (144 ) $ 910 Cost of sales — — (506 ) (325 ) 144 (687 ) Gross profit — — 122 101 — 223 Selling, general and administrative expenses — (46 ) (63 ) (32 ) — (141 ) Operating (loss) profit — (46 ) 59 69 — 82 Loss on extinguishment of debt — (15 ) — — — (15 ) Other income and expense, net — (1 ) — (2 ) — (3 ) Interest expense — (72 ) — (1 ) — (73 ) (Loss) income from continuing operations before income tax benefit (provision) and equity in income (loss), net of tax — (134 ) 59 66 — (9 ) Income tax benefit (provision) — 2 — (16 ) — (14 ) Equity in income (loss), net of tax 7 139 61 (2 ) (207 ) (2 ) Net income (loss) from continuing operations 7 7 120 48 (207 ) (25 ) Income from discontinued operations, net of tax — — 19 13 — 32 Net income (loss) $ 7 $ 7 $ 139 $ 61 $ (207 ) $ 7 Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2013 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net income (loss) $ 7 $ 7 $ 139 $ 61 $ (207 ) $ 7 Other comprehensive income (loss), net of tax: Pension liability adjustment 1 1 — 1 (2 ) 1 Change in fair value of interest rate swaps 9 9 — — (9 ) 9 Reclassification into earnings from interest rate swaps (2 ) (2 ) — — 2 (2 ) Change in foreign currency translation adjustments (19 ) (19 ) — (19 ) 38 (19 ) Total other comprehensive (loss) income (11 ) (11 ) — (18 ) 29 (11 ) Total comprehensive (loss) income $ (4 ) $ (4 ) $ 139 $ 43 $ (178 ) $ (4 ) Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Balance Sheet December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Assets Current assets: Cash and cash equivalents $ — $ 1 $ — $ 27 $ — $ 28 Restricted cash — — — 6 — 6 Accounts receivable — (1 ) 35 46 — 80 Inventories, net — (2 ) 94 74 — 166 Other current assets — — — 20 — 20 Total current assets — (2 ) 129 173 — 300 Property, plant and equipment, net — 1 63 51 — 115 Investments and other assets — 131 37 5 — 173 Intercompany investments (308 ) 454 719 — (865 ) — Intercompany (payables) receivables — (154 ) (422 ) 576 — — Total assets $ (308 ) $ 430 $ 526 $ 805 $ (865 ) $ 588 Liabilities and Equity Current liabilities: Accounts payable $ — $ 6 $ 55 $ 25 $ — $ 86 Notes payable — 148 — 30 — 178 Other accrued expenses — 10 16 18 — 44 Accrued payroll and employee benefits — 2 1 5 — 8 Current liabilities of discontinued operations — 6 — — — 6 Total current liabilities — 172 72 78 — 322 Long-term debt — 562 — — — 562 Deferred employee benefits and noncurrent liabilities — 4 — 8 — 12 Total liabilities — 738 72 86 — 896 Total shareholder’s (deficit) equity (308 ) (308 ) 454 719 (865 ) (308 ) Total liabilities and equity $ (308 ) $ 430 $ 526 $ 805 $ (865 ) $ 588 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Balance Sheet December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Assets Current assets: Cash and cash equivalents $ — $ 10 $ — $ 16 $ — $ 26 Restricted cash — — — 4 — 4 Accounts receivable — — 44 45 — 89 Inventories, net — — 98 45 — 143 Other current assets — 44 1 35 — 80 Current assets of discontinued operations — — — 199 — 199 Total current assets — 54 143 344 — 541 Property, plant and equipment, net — 1 57 51 — 109 Investments and other assets — 121 36 12 — 169 Intercompany investments (221 ) 386 747 — (912 ) — Intercompany receivables (payables) — 48 (508 ) 460 — — Total assets $ (221 ) $ 610 $ 475 $ 867 $ (912 ) $ 819 Liabilities and Equity Current liabilities: Accounts payable $ — $ 10 $ 70 $ 19 $ — $ 99 Notes payable — — — 19 — 19 Other accrued expenses — 15 15 13 — 43 Accrued payroll and employee benefits — 9 4 3 — 16 Current liabilities of discontinued operations — — — 58 — 58 Total current liabilities — 34 89 112 — 235 Long-term debt — 792 — — — 792 Deferred employee benefits and noncurrent liabilities — 5 — 8 — 13 Total liabilities — 831 89 120 — 1,040 Total shareholder’s (deficit) equity (221 ) (221 ) 386 747 (912 ) (221 ) Total liabilities and equity $ (221 ) $ 610 $ 475 $ 867 $ (912 ) $ 819 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Elimination Consolidated Total Operating activities Net cash provided by operating activities $ 21 $ 5 $ 14 $ 2 $ (21 ) $ 21 Investing activities Proceeds from sales of assets — 91 — — — 91 Change in restricted cash — — — (2 ) — (2 ) Additions to property, plant and equipment — (1 ) (14 ) (13 ) — (28 ) Net cash provided by (used in) investing activities — 90 (14 ) (15 ) — 61 Financing activities Repayments of other debt (21 ) — — (17 ) 21 (17 ) Proceeds from other debt — — — 28 — 28 Dividend to shareholder — (21 ) — — — (21 ) Repayments of term loans — (83 ) — — — (83 ) Proceeds from stock options exercise — 1 — — — 1 Other financing activities — (1 ) — — — (1 ) Net cash (used in) provided by financing activities (21 ) (104 ) — 11 21 (93 ) Effect of exchange rates on cash — — — (6 ) — (6 ) Change in cash and cash equivalents — (9 ) — (8 ) — (17 ) Cash and cash equivalents at beginning of period — 10 — 35 — 45 Cash and cash equivalents at end of period $ — $ 1 $ — $ 27 $ — $ 28 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Elimination Consolidated Total Operating activities Net cash provided by (used in) operating activities $ 66 $ (25 ) $ 13 $ 32 $ (66 ) $ 20 Investing activities Proceeds from sales of assets — 149 — — — 149 Change in restricted cash — — — (4 ) — (4 ) Additions to property, plant and equipment — — (13 ) (13 ) — (26 ) Proceeds from sale of equity method investment — 4 — — — 4 Other investing activities — 3 — — — 3 Net cash provided by (used in) investing activities — 156 (13 ) (17 ) — 126 Financing activities Repayments of other debt (66 ) — — (10 ) 66 (10 ) Proceeds from other debt — — — 7 — 7 Dividend to shareholder — (66 ) — — — (66 ) Repayments of term loans — (123 ) — — — (123 ) Net cash used in financing activities (66 ) (189 ) — (3 ) 66 (192 ) Effect of exchange rates on cash — — — (10 ) — (10 ) Change in cash and cash equivalents — (58 ) — 2 — (56 ) Cash and cash equivalents at beginning of period — 68 — 33 — 101 Cash and cash equivalents at end of period $ — $ 10 $ — $ 35 $ — $ 45 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Elimination Consolidated Total Operating activities Net cash provided by operating activities $ 352 $ 61 $ 17 $ 21 $ (352 ) $ 99 Investing activities Investments in companies, net of cash acquired — — — (1 ) — (1 ) Additions to property, plant and equipment — (1 ) (17 ) (13 ) — (31 ) Net cash used in investing activities — (1 ) (17 ) (14 ) — (32 ) Financing activities Repayment on secured notes — (195 ) — — — (195 ) Repayment on subordinated notes — (367 ) — — — (367 ) Dividend to shareholder (352 ) (352 ) — — 352 (352 ) Repayment on term loans — (3 ) — — — (3 ) Payment of deferred financing costs — (15 ) — — — (15 ) Proceeds from term loans — 667 — — — 667 Proceeds from senior notes — 250 — — — 250 Net cash used in financing activities (352 ) (15 ) — — 352 (15 ) Effect of exchange rates on cash — — — (2 ) — (2 ) Change in cash and cash equivalents — 45 — 5 — 50 Cash and cash equivalents at beginning of period — 23 — 28 — 51 Cash and cash equivalents at end of period $ — $ 68 $ — $ 33 $ — $ 101 |
Reconciliation of Previously Re
Reconciliation of Previously Reported Amounts to Amounts Revised and Restated | 12 Months Ended |
Dec. 31, 2015 | |
Quantifying Prior Year Misstatements Corrected In Current Year Financial Statements [Abstract] | |
Reconciliation of Previously Reported Amounts to Amounts Revised and Restated | 20. RECONCILIATION OF PREVIOUSLY REPORTED AMOUNTS TO AMOUNTS REVISED AND RESTATED As described in Note 1, “Description of Business and Basis of Presentation,” we have identified certain misstatements relating to prior years’ consolidated financial statements and have corrected these prior period misstatements in the accompanying consolidated financial statements. The impacts of these changes on selected financial amounts within the accompanying consolidated financial statements are summarized below: Year Ended December 31, 2014 Consolidated Statement of Operations: As Previously Reported (1) Reclassification of Discontinued Operations (2) Correction of Prior Period Misstatement (3) As Reclassified and Restated (4) Net sales $ 1,396 $ (421 ) $ (5 ) $ 970 Cost of sales (1,056 ) 338 (8 ) (726 ) Gross profit 340 (83 ) (13 ) 244 Selling, general and administrative expenses (199 ) 51 5 (143 ) Operating profit 141 (32 ) (8 ) 101 Other income and expense, net (13 ) — 6 (7 ) Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax 72 (32 ) (2 ) 38 Income tax provision (19 ) 10 1 (8 ) Net (loss) income from continuing operations 53 (22 ) (1 ) 30 (Loss) income from discontinued operations, net of tax 29 22 — 51 Net (loss) income 82 — (1 ) 81 Net (loss) income attributable to the Company $ 82 $ — $ (1 ) $ 81 Net (loss) income 82 — (1 ) 81 Total comprehensive (loss) income $ 49 $ — $ (1 ) $ 48 Year Ended December 31, 2013 Consolidated Statement of Operations: As Previously Reported (1) Reclassification of Discontinued Operations (2) Correction of Prior Period Misstatement (3) As Reclassified and Restated (4) Net sales $ 1,361 $ (446 ) $ (5 ) $ 910 Cost of sales (1,043 ) 356 — (687 ) Gross profit 318 (90 ) (5 ) 223 Selling, general and administrative expenses (200 ) 55 4 (141 ) Operating profit 118 (35 ) (1 ) 82 Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax 29 (37 ) (1 ) (9 ) Income tax provision (22 ) 10 (2 ) (14 ) Net (loss) income from continuing operations 5 (27 ) (3 ) (25 ) (Loss) income from discontinued operations, net of tax 5 27 — 32 Net (loss) income 10 — (3 ) 7 Net (loss) income attributable to the Company $ 10 $ — $ (3 ) $ 7 Net (loss) income 10 — (3 ) 7 Total comprehensive (loss) income $ (1 ) $ — $ (3 ) $ (4 ) Year Ended December 31, 2014 Consolidated Balance Sheet: As Previously Reported (1) Reclassification of Discontinued Operations (2) Correction of Prior Period Misstatement (3)(5) As Reclassified and Restated (4) Assets Trade accounts receivable $ 145 $ (56 ) $ — $ 89 Inventories, net 214 (70 ) (1 ) 143 Property, plant and equipment, net 123 (14 ) — 109 Other intangible assets, net 54 — (1 ) 53 Deferred income taxes 97 — — 97 Accumulated deficit Accumulated deficit (622 ) — (2 ) (624 ) Statement of shareholder’s equity (deficit): Year Beginning January 1, 2013 Beginning accumulated deficit, as previously reported (1) $ (296 ) Prior-period adjustment (3) 2 Beginning accumulated deficit, as restated (4) $ (294 ) (1 ) Amounts reported in the Company’s 2014 Annual Report on Form 10-K. (2) Reflects the effect of reclassifying the former ASA segment to discontinued operations for the years ended December 31, 2014 and 2013, and as of December 31, 2014, to conform to current presentation. (3) Reflects the correction of misstatements identified related to previously issued financial statements related to inventory, property, plant and equipment, intangible assets, income taxes and liabilities associated with customer cash discounts. In addition, these numbers reflect the correction of classifications related to previously issued financial statements between net sales and selling, general and administrative expenses, other expense and cost of goods sold. (4) Reflects the resulting amounts in the accompanying Consolidated Statements of Operations for the years ended December 31, 2014 and 2013, and in the accompanying Consolidated Balance Sheets as of December 31, 2014. (5) Reflects the correction of misstatements identified related to previously issued financial statements and notes to the financial statements. Due to the immateriality of certain misstatements, certain amounts in the column “Correction of Prior Period Misstatement” (“Trade accounts receivable” and “Property, plant and equipment, net”) round to zero and are presented as such. However, all amounts reflected in the “As Reclassified and Restated” column represent the actual amounts reported on the Consolidated Balance Sheets. As a result of the correction of amounts reflected in the consolidated financial statements, the Company has adjusted prior year amounts in Note 3, “Segment Information,” Note 7, “Inventories,” Note 9, “Income Taxes,” Note 12, “Other Intangible Assets,” Note 14, “Property, Plant and Equipment,” and Note 19, “Financial Information for Guarantors and Non-Guarantors” to reflect the impacts on the previously reported financial information. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include all domestic and foreign subsidiaries that were more than 50% owned and controlled as of each respective reporting period presented. All intercompany transactions have been eliminated. Investments in which the Company has the ability to exercise significant influence but does not control are accounted for using the equity method of accounting. Investments in which the Company is not able to exercise significant influence over are accounted for under the cost method of accounting. |
Use of Estimates | Use of Estimates These Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The preparation of financial statements that conform to GAAP in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates and assumptions. |
Concentration of Credit Risk | Concentration of Credit Risk The primary type of financial instruments that subject the Company to concentrations of credit risk are trade accounts receivable. The Company limits its credit risk by performing ongoing credit evaluations of its customers and, when deemed necessary, requires letters of credit, guarantees or collateral. The majority of the Company’s accounts receivable is due from replacement parts wholesalers and retailers serving the aftermarket. The Company’s net sales to its largest customer for the years ended December 31, 2015, 2014 and 2013, was 34%, 33% and 33% of total net sales from continuing operations, respectively. Net sales to its current second largest customer for the years ended December 31, 2015, 2014 and 2013, was 11%, 9% and 7% of total net sales from continuing operations, respectively. Net sales represent the amounts invoiced to customers after adjustments related to rebates, returns and discounts. The Company provides reserves for rebates, returns and discounts at the time of sale which are subsequently applied to the account of specific customers based upon actual activity including the attainment of targeted volumes. The Company’s largest customer’s accounts receivable as of December 31, 2015 and 2014, represented approximately 50% and 45%, respectively, of the total accounts receivable. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date and equity accounts are translated at historical rates. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are presented in “Change in foreign currency translation adjustments” within the Consolidated Statements of Comprehensive Income (Loss). Included in “Net (loss) income” in the Consolidated Statements of Operations are the gains and losses arising from foreign currency transactions. The impact of foreign currency transactions, including the results of the Company’s foreign currency hedging activities, on “Income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax” in the Consolidated Statements of Operations amounted to a loss of $6 million, $13 million and $6 million during the years ended December 31, 2015, 2014 and 2013, respectively. These amounts include devaluation charges discussed further in Note 18, “Venezuela Operations.” |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash Restricted cash at December 31, 2015 and 2014 relates to amounts on deposit in Venezuela to fund the procurement of U.S. Dollars via currency exchange auctions administered by the Venezuelan government. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable The Company records trade accounts receivable when revenue is recorded in accordance with the Company’s revenue recognition policy and relieves accounts receivable when payments are received from customers. Allowance for Doubtful Accounts The allowance for doubtful accounts is established through charges to the provision for bad debts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts, and management’s evaluation of business risk. The allowance is an estimate that may be impacted by economic and market conditions which could have an effect on future allowance requirements and results of operations. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Cost is determined on the first-in, first-out (“FIFO”) method of inventory costing for all domestic inventories and at the Company’s Poland operations, or average cost basis for other non-U.S. inventories. |
Goodwill | Goodwill Goodwill is not amortized, but instead the Company evaluates goodwill for impairment, as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. In assessing the recoverability of goodwill, the Company performs a qualitative or quantitative assessment to test for impairment annually. If the Company determines, on the basis of qualitative factors, that a quantitative impairment test is required estimated future cash flows and other factors are made to determine the fair value of the respective reporting unit. If these estimates or related projections change in the future, the Company may be required to record impairment charges for goodwill at that time. |
Intangibles | Intangibles Affinia has trade names with indefinite lives and other intangibles with definite lives. Affinia tests trade names for impairment on an annual basis as of December 31 of each year, unless conditions arise that would require a more frequent evaluation. Trade names are tested for impairment by comparing the fair value to their carrying values. The Company’s intangibles with definite lives consist of customer relationships, patents and developed technology. These assets are amortized on a straight-line basis over estimated useful lives ranging from 5 to 20 years. Certain conditions may arise that could result in a change in useful lives or require the Company to perform a valuation to determine if the definite lived intangibles are impaired. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are incurred to obtain long-term financing and are amortized using the effective interest method over the term of the related debt. The amortization of deferred financing costs is classified in interest expense in the statement of operations. |
Depreciation | Depreciation Fixed assets are depreciated over their estimated remaining lives using the straight-line method for financial reporting purposes and accelerated depreciation methods for federal income tax purposes. Major additions and improvements are capitalized and depreciated over their estimated useful lives, and repairs and maintenance are charged to expense in the period incurred. The Company reviews long-lived assets for impairment and generally accepted accounting principles require recognition of an impairment loss only if the carrying amount of a long-lived asset is not recoverable from its undiscounted cash flows. If the long-lived asset is not recoverable, the Company measures an impairment loss as the difference between the carrying amount and fair value of the asset. Useful lives for buildings and building improvements, machinery and equipment, tooling and office equipment, furniture and fixtures principally range from 20 to 30 years, five to ten years, three to five years and three to ten years, respectively. Upon retirement or other disposal of fixed assets, the cost and related accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds is recorded as a gain or loss on disposition. |
Revenue Recognition | Revenue Recognition Sales are recognized when products are shipped or received, depending on the contractual terms, and risk of loss has transferred to the customer. The Company estimates and records provisions for warranty costs, sales returns, rebates and other allowances based on experience and other relevant factors, when sales are recognized. The Company assesses the adequacy of its recorded warranty, sales returns, rebates and allowances liabilities on a regular basis and adjusts the recorded amounts as necessary. While management believes that these estimates are reasonable, actual warranty costs, actual returns, rebates and allowances may differ from estimates. Shipping and handling fees billed to customers are included in sales and the costs of shipping and handling are included in cost of sales. |
Income Taxes | Income Taxes Income taxes are recognized during the period in which transactions enter into the determination of financial statement income, with deferred income taxes being provided for the tax effect of temporary differences between the carrying amount of assets and liabilities and their tax basis. Deferred income taxes are provided on the undistributed earnings of foreign subsidiaries and affiliated companies except to the extent such earnings are considered to be permanently reinvested in the subsidiary or affiliate. In cases where foreign tax credits will not offset U.S. income taxes, amounts are included in the “Income tax provision” within Consolidated Statements of Operations. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
Financial Instruments | Financial Instruments The reported fair values of financial instruments, consisting of cash and cash equivalents, trade accounts receivable and long-term debt, are based on a variety of factors. Where available, fair values represent quoted market prices for identical or comparable instruments. Where quoted market prices are not available, fair values are estimated based on assumptions concerning the implied market volatilities, amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of credit and market risk. Fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. As of December 31, 2015 and 2014, the book value of some of the Company’s financial instruments, consisting of cash and cash equivalents and trade accounts receivable, approximated their fair values. The fair value of long-term debt is discussed further in Note 6, “Debt.” |
Environmental Compliance and Remediation | Environmental Compliance and Remediation Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to existing conditions caused by past operations which do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Estimated costs are based upon current laws and regulations, existing technology and the most probable method of remediation. The costs are not discounted and exclude the effects of inflation. If the cost estimates result in a range of equally probable amounts, the lower end of the range is accrued. |
Advertising Costs and Promotional Programs | Advertising Costs Advertising costs are recognized within “Selling, general and administrative expenses” in the Consolidated Statements of Operations at the time advertising when incurred. Advertising expenses included in continuing operations were $17 million, $17 million and $16 million for the years 2015, 2014, and 2013, respectively. The advertising expenses included in discontinued operations, were $2 million, $3 million and $5 million for the years 2015, 2014, and 2013, respectively. Promotional Programs Cooperative advertising programs conducted with customers that promote the Company’s products are accrued as a rebate based on anticipated total amounts to be rebated to customers over the period of the agreement with the customer. Rebates are reflected within “net sales” in the Consolidated Statements of Operations. Aftermarket distributors typically source their product lines at a particular price point and product category with one “full-line” supplier, such as Affinia, which covers substantially all of their product requirements. Switching to a new supplier typically requires that a distributor or supplier make a substantial investment to purchase, or “changeover” to the new supplier’s products. The changeover costs and other incentives incurred in connection with obtaining new business are recognized as a reduction to net sales over the period during which revenue from the initial customer order is recognized. Infrequently, the Company enters into a contract with a customer for a set period of time that requires the reimbursement of the incentive by the customer if the future conditions of the contract are not met. In these infrequent cases the incentive is recorded as a reduction of revenue over the life of the contract. |
Insurance | Insurance The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, vehicle liability and the Company-funded portion of employee-related health care benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. |
Derivatives | Derivatives The Company is subject to various financial risks during the normal course of business operations, including but not limited to, adverse changes to interest rates, currency exchange rates, counterparty creditworthiness, and commodity prices. The Company may utilize financial derivative instruments in order to mitigate the potential impact of these factors. The Company’s policies strictly prohibit the use of derivatives for speculative purposes. The Company uses derivative financial instruments to manage the risk that changes in interest rates will have on the amount of future interest payments. Interest rate swap contracts are used to adjust the proportion of total debt that is subject to variable versus fixed interest rates. Under these agreements, the Company agrees to pay an amount equal to a specified fixed rate times a notional principal amount, and to receive an amount equal to a specified variable rate times the same notional principal amount or vice versa. The notional amounts of the contract are not exchanged. No other cash payments are made unless the contract is terminated prior to maturity, in which case the amount paid or received in settlement is established by agreement at the time of termination and will represent the net present value, at current rates of interest, of the remaining obligation to exchange payments under the terms of the contract. The Company measures hedge effectiveness, at least quarterly, by using the hypothetical derivative method. In 2015 and 2014, the Company’s derivative instrument portfolio included standard currency forward contracts and interest rate swaps. The currency forward contracts are intended to offset the earnings impact related to the periodic revaluation of specific non-functional currency denominated monetary working capital accounts and intercompany financing arrangements. The Company does not employ hedge accounting treatment for its currency forward contacts because the earnings impact from both the underlying exposures and the hedge transactions are recognized in each accounting period. The Company uses interest rate swaps to manage the ratio of net floating-rate debt to total debt outstanding, thereby reducing the potential impact that interest rate variability may have on its consolidated financial results. The Company has designated its interest rate swaps as “cash flow” hedges. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for equity awards issued under its 2005 Stock Plan in accordance with Accounting Standards Codification (“ASC”) Topic 718, “ Compensation – Stock Compensation” |
Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Accounting Pronouncements Issued But Not Yet Adopted In July 2015, the FASB issued ASU 2015-11 “ Simplifying the Measurement of Inventory In April 2015, the FASB issued ASU 2015-03 “ Simplifying the Presentation of Debt Issuance Costs In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern.” Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17 “ Balance Sheet Classification of Deferred Taxes. In April 2014, the FASB issued ASU 2014-08, “ Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. “Presentation of Financial Statements—Discontinued Operations,” |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Sales, Operating Profit, Total Assets, Depreciation and Amortization and Capital Expenditures | The following table presents financial information for the Filtration segment, as well as for corporate, eliminations and other, and on a consolidated basis: Net Sales Operating Profit Years Ended December 31, (Dollars in millions) 2015 2014 2013 2015 2014 2013 Filtration $ 900 $ 962 $ 897 $ 130 $ 153 $ 144 Corporate, eliminations and other (1) (1 ) 8 13 (47 ) (52 ) (62 ) Consolidated $ 899 $ 970 $ 910 $ 83 $ 101 $ 82 Total Assets Years Ended December 31, (Dollars in millions) 2015 2014 Filtration $ 453 $ 442 Corporate, eliminations and other (2) 135 178 Assets of discontinued operations (3) — 199 Consolidated $ 588 $ 819 (1) The twelve months ended December 31, 2014 includes $9 million of net sales and operating profit of $2 million associated with ASA’s Venezuelan operations, which were shut down in June 2014. As these operations did not meet the criteria as held-for-sale, they are reported as a component of continuing operations. However, due to the insignificance of the amounts associated with this business, management has presented them within corporate, eliminations and other since the remainder of the ASA segment is included in discontinued operations. The twelve months ended December 31, 2013 includes $13 million of net sales and operating profit of $1 million associated with ASA’s Venezuelan operations. (2) Corporate assets consist of cash, deferred income taxes, corporate facility and various other assets that are not specific to an operating segment. (3) The amounts related to the former ASA segment and the Chassis group (see Note 3, “Segment Information,” for a further discussion on the Company’s Chassis group) are classified in the “Current assets of discontinued operations” in 2014. Depreciation and Amortization Capital Expenditures Years Ended December 31, (Dollars in millions) 2015 2014 2013 2015 2014 2013 Filtration $ 17 $ 17 $ 15 $ 26 $ 22 $ 22 Corporate, eliminations and other — 2 3 1 — — Total from continuing operations 17 19 18 27 22 22 Discontinued operations 2 3 4 1 4 9 Consolidated $ 19 $ 22 $ 22 $ 28 $ 26 $ 31 |
Net Sales by Geographic Region | Net sales by geographic region were as follows: Years Ended December 31, (Dollars in millions) 2015 2014 2013 Canada $ 37 $ 46 $ 47 Poland 146 167 161 Venezuela 110 73 75 Other countries 58 60 54 Total other countries 351 346 337 United States 548 624 573 Consolidated $ 899 $ 970 $ 910 |
Long Lived Assets by Geographic Region | Long-lived assets by geographic region were as follows: Years Ended December 31, (Dollars in millions) 2015 2014 (1) China $ 16 $ 18 Poland 29 27 Other countries 9 9 Total other countries 54 54 United States 119 125 Consolidated $ 173 $ 179 (1) Long-lived assets as of December 31, 2014 exclude $14 million for the former ASA segment, which is classified in current assets of discontinued operations. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ASA [Member] | |
Schedule of Assets and Liabilities Included in Held for Sale | The following table shows the former ASA segment’s assets and liabilities that are included in “Current assets of discontinued operations” and “Current liabilities of discontinued operations” on the Consolidated Balance Sheets: December 31, December 31, (Dollars in millions) 2015 2014 Cash and cash equivalents $ — $ 19 Trade accounts receivable — 56 Inventories, net — 70 Other current assets — 24 Property, plant and equipment, net — 14 Other assets — 16 Current assets of discontinued operations $ — $ 199 Accounts payable 39 Other accrued expenses 6 19 Current liabilities of discontinued operations $ 6 $ 58 |
Summary of Depreciation, Amortization and Capital Expenditure | The following table shows the “Depreciation and amortization” and capital expenditures that are included within the Consolidated Statements of Cash Flow associated with the former ASA segment. Years Ended December 31, (Dollars in millions) 2015 2014 Depreciation and amortization $ 2 $ 3 Capital expenditures $ 1 $ 4 |
Chassis Group [Member] | |
Summary of Components Included within Income (Loss) from Discontinued Operations | The following table shows the Chassis group’s net sales, income before tax provision, income tax provision and net income that are included within “(Loss) income from discontinued operations, net of tax” on the Consolidated Statements of Operations associated with the Chassis disposal group: Years Ended December 31, (Dollars in millions) 2015 2014 2013 Net sales $ — $ 64 $ 189 Income before income tax provision — 5 15 Income tax provision — (2 ) (10 ) Income from discontinued operations, net of tax $ — $ 3 $ 5 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Interest Rate Swaps and Our Currency Forward Contract Derivatives | The Company’s fair value of interest rate swaps and its currency forward contract derivatives at December 31, 2015 and 2014 are set forth in the table below: (Dollars in Millions) Asset (Liability) Level 2 Valuation Technique December 31, 2015: Interest rate swap contracts $ (2 ) $ (2 ) A Foreign currency forward contracts — — A December 31, 2014: Interest rate swap contracts $ 2 $ 2 A Foreign currency forward contracts — — A |
Schedule of Notional Amounts Associated with Currency Forward Contracts and Interest Rate Swaps | The table below shows notional amounts associated with currency forward contracts and interest rate swaps as December 31, 2015 and December 31, 2014: (Dollars in millions) December 31, 2015 December 31, 2014 Foreign Currency Forward Contracts $ 25 $ 70 Interest Rate Contracts 300 300 |
Schedule of Fair Value of Interest Rate Derivatives and Line items in Consolidated Balance Sheets | The following table shows the fair value of interest rate derivatives and the line items in the Consolidated Balance Sheets where they are reported. The fair value of foreign currency forward contracts were insignificant at both December 31, 2015 and December 31, 2014. December 31, 2015 December 31, 2014 (Dollars in millions) Asset Liability Asset Liability Derivative Designated as Hedging Instruments Interest Rate Contracts Other current assets $ — $ 2 Other accrued expenses $ 2 $ — Total Derivatives Designated as Hedging Instruments $ — $ 2 $ 2 $ — |
Schedule of Pretax Gains and Losses Recognized on De-designated Derivatives and Line Items on Consolidated Statements of Operations | The following table shows the gains and losses recognized on de-designated derivatives and the line items on the Consolidated Statements of Operations where the pretax gains and losses were reported. Years Ended December 31, (Dollars in millions) 2015 2014 Location of Pretax Gains (Losses) Recognized in Earnings Foreign Currency Forward Contracts Other income and expense, net $ 3 $ 1 Total Pretax Gains (Losses) Recognized in Earnings $ 3 $ 1 |
Schedule of Gains and Losses Recognized on Cash Flow Hedges and Line Items on Consolidated Statements of Operations | The following table shows the gains and losses recognized on cash flow hedges and the line items on the Consolidated Statements of Operations where such gains and losses are included when reclassified from AOCI. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Amounts for foreign currency forward contracts are reclassified to earnings within other income and expense, net as the underlying transactions impact earnings. Amounts associated with foreign currency forward contracts were insignificant during the year ended December 31, 2015 and 2014. Years Ended December 31, 2015 2014 Pretax Gains (Losses) Recorded in AOCI Interest Rate Contracts $ 4 $ 9 Total Pretax Gains (Losses) Recorded in AOCI $ 4 $ 9 Location of Pretax (Losses) Reclassified from AOCI into Earnings Interest Rate Contracts Interest Expense $ 2 $ 2 Total Pretax (Losses) Recognized in Earnings $ 2 $ 2 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following: (Dollars in millions) December 31, 2015 December 31, 2014 7.75% Senior notes, due May 2021 $ 250 $ 250 Term Loan B-1, due April 2016 148 175 Term Loan B-2, due April 2020 312 367 Other debt(1) 30 19 Total debt 740 811 Less: current portion (178 ) (19 ) Long-term debt $ 562 $ 792 (1) At December 31, 2015, the current portion consists of $148 million of Term Loan B-1, which, as discussed further below, was repaid in full in March 2016, $20 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.8 points and $10 million related to the Company’s Venezuela operations. At December 31, 2014, $12 million related to the Company’s Poland operations with a rate of one month LIBOR plus 0.9 points and $7 million related to the Company’s Venezuela operations. |
Scheduled Maturities of Debt | Scheduled maturities of debt for each of the next five years and thereafter are as follows: (Dollars in millions) Year Amount 2016 $ 178 2017 — 2018 — 2019 — 2020 312 2021 and thereafter 250 Total debt $ 740 |
Schedule of Fair Value of Debt, Net of Discount | The fair value of debt is as follows: Fair Value of Debt at December 31, 2015 (Dollars in millions) Book Value of Debt Fair Value Factor Fair Value of Debt Senior notes, due May 2021(1) $ 250 101.75 % $ 254 Term Loan B-1, due April 2016(1) 148 99.63 % 148 Term Loan B-2, due April 2020(1) 312 97.88 % 305 Other debt(2) 30 100 % 30 Total fair value of debt at December 31, 2015 $ 737 Fair Value of Debt at December 31, 2014 (Dollars in millions) Book Value of Debt Fair Value Factor Fair Value of Debt Senior notes, due May 2021(1) $ 250 102.50 % $ 256 Term Loan B-1, due April 2016(1) 175 97.88 % 171 Term Loan B-2, due April 2020(1) 367 97.00 % 356 Other debt(2) 19 100 % 19 Total fair value of debt at December 31, 2014 $ 802 (1) The fair value of the long-term debt was estimated based on quoted market prices obtained through broker or pricing services and categorized within Level 2 of the fair value hierarchy. The fair value of the Company’s debt that is publicly traded in the secondary market is classified as Level 2 and is based on current market yields obtained through broker or pricing services. (2) The carrying value of fixed rate short-term debt approximates fair value because of the short term nature of these instruments, and the carrying value of the Company’s current floating rate debt instruments approximates fair value because of the variable interest rates pertaining to those instruments. The fair value of debt is categorized within Level 2 of the fair value hierarchy. |
Schedule of Interest Rates and Fees | The Company will pay a commission on letters of credit issued under the ABL Revolver at a rate equal to the applicable spread for loans based upon the LIBOR rate. Level Average Aggregate Availability Base Rate Loans and Swingline Loans LIBOR Loans I <$50,000,000 1.00 % 2.00 % II > $50,000,000 but ≤ $100,000,000 0.75 % 1.75 % III >$100,000,000 0.50 % 1.50 % |
Summarizes Deferred Financing Activity | The following table summarizes the deferred financing activity for the Company: (Dollars in millions) Balance at December 31, 2013 $ 18 Amortization (4 ) Write-off of unamortized deferred financing costs (1 ) Deferred financing costs 1 Balance at December 31, 2014 $ 14 Amortization (3 ) Write-off of unamortized deferred financing costs (1 ) Balance at December 31, 2015 $ 10 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories Net and Excludes Amounts Included in Current Assets of Discontinued Operations | A summary of inventories, net is provided in the table below and excludes amounts included in “Current assets of discontinued operations” in the Consolidated Balance Sheets (Dollars in millions) At December 31, 2015 At December 31, 2014 Raw materials $ 61 $ 56 Work-in-process 18 16 Finished goods 87 71 $ 166 $ 143 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Commitments under Non-Cancelable Operating Leases in Continuing Operations | The Company had future minimum rental commitments under non-cancelable operating leases in continuing operations of $31 million at December 31, 2015, with future rental payments of: (Dollars in millions) Operating Leases 2016 6 2017 6 2018 5 2019 5 2020 5 Thereafter 4 Total $ 31 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | The components of the income tax provision (benefit) from continuing operations are as follows: (Dollars in millions) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Current: U.S. federal $ — $ — $ — U.S. state and local — — — Non-United States 10 5 15 Total current 10 5 15 Deferred: U.S. federal and state 5 15 (7 ) Non-United States 5 (12 ) 6 Total deferred 10 3 (1 ) Income tax provision $ 20 $ 8 $ 14 |
Components of Income before Income Tax, Equity, Net of Tax and Noncontrolling Interest | The income tax provision was calculated based upon the following components of income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax: (Dollars in millions) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 United States $ (40 ) $ (23 ) $ (64 ) Non-United States 61 61 55 Income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax $ 21 $ 38 $ (9 ) |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consisted of the following: (Dollars in millions) A t r 2015 A t r 2014 Deferred tax assets: Net operating and other loss carryforwards $ 123 $ 128 Inventory reserves 4 3 Expense accruals 23 25 Depreciation & amortization — 2 Other 4 7 Subtotal 154 165 Valuation allowance (31 ) (25 ) Deferred tax assets 123 140 Deferred tax liabilities: Depreciation & amortization 1 — Foreign earnings 9 24 Other liabilities — 1 Deferred tax liabilities 10 25 Net deferred tax assets $ 113 $ 115 Balance Sheet Presentation: Current deferred taxes — 19 Deferred income taxes 113 97 Deferred employee benefits and other noncurrent liabilities — (1 ) Net deferred tax assets $ 113 $ 115 |
Schedule of Reconciliation of Effective Income Tax Rate | The effective income tax rate differs from the U.S. federal income tax rate for the following reasons: Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Increases (reductions) resulting from: State and local income taxes, net of federal income tax benefit (5.9 ) (2.6 ) 22.2 Valuation allowance 27.4 2.6 (22.2 ) Non-U.S. income (51.7 ) (26.3 ) 100.0 Foreign restructuring — (26.3 ) — U.S. Permanent Differences (1) 149.6 31.6 (233.3 ) Unrecognized Tax Benefits (2) — (18.4 ) (77.8 ) Unremitted Earnings (59.2 ) 26.3 22.2 Effective income tax rate 95.2 % 21.9 % -153.9 % (1) The U.S. Permanent Differences affecting the tax rate were primarily the result of deemed distributions from foreign subsidiaries. (2) The 2013 tax rate was negatively impacted by the recognition of an uncertain tax position resulting from an unfavorable ruling impacting the Company’s international operations. |
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: (Dollars in millions) Balance at January 1, 2013 $ 1 Increases to tax positions 7 Decreases to tax positions — Balance at January 1, 2014 8 Increases to tax positions — Decreases to tax positions (7 ) Balance at January 1, 2015 1 Increases to tax positions — Decreases to tax positions — Balance at December 31, 2015 $ 1 |
Accounts Receivable Factoring (
Accounts Receivable Factoring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of Accounts Receivable Factoring | Years Ended December 31, (Dollars in millions) 2015 2014 Gross accounts receivable factored $ 360 $ 467 Expenses associated with factoring of receivables 3 4 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Rollforward of Other Intangibles and Trade Names | A rollforward of the other intangibles and trade names for 2014 and 2015 is shown below: (Dollars in millions) Trade Names Customer Relationships Developed Technology/ Other Total Balance at December 31, 2013 30 27 3 60 Amortization — (1 ) — (1 ) Tax benefit reductions (3 ) (3 ) — (6 ) Balance at December 31, 2014 $ 27 $ 23 $ 3 $ 53 Amortization — (1 ) — (1 ) Tax benefit reductions (4 ) (2 ) (1 ) (7 ) Balance at December 31, 2015 $ 23 $ 20 $ 2 $ 45 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Plan Balances for Restricted Stock Units, Stock Options, Deferred Compensation Shares and Stock Awards | The table below summarizes the 2005 Stock Plan balances for the RSUs, stock options, deferred compensation shares and stock awards. At December 31, 2015 2014 Restricted stock units 190,478 185,365 Stock options 15,383 22,568 Deferred compensation shares 23,358 28,964 Stock award 163 163 Shares available to award 120,618 112,940 Number of shares of common stock subject to awards 350,000 350,000 |
Schedule of Outstanding Stock Options | A rollforward of outstanding stock options for the years ended December 31, 2013, 2014 and 2015 is as follows: Options Outstanding at January 1, 2013 23,835 Forfeited/expired (480 ) Outstanding at December 31, 2013 23,355 Forfeited/expired (3,787 ) Outstanding at December 31, 2014 19,568 Exercised (12,383 ) Forfeited/expired (7,185 ) Outstanding at December 31, 2015 — |
Schedule of Weighted-Average Monte Carlo Fair Value Assumptions | The Company’s weighted-average Monte Carlo fair value assumptions include: Cypres s IP O Effective term 0.04 years 0.24 years Fair value of an RSU $ 173.66 $ 169.30 Expected expense (Dollars in millions) $ 23 $ 23 |
Schedule of Restricted Stock Units | A rollforward of the outstanding RSU awards for the years ended December 31, 2013, 2014 and 2015 is as follows: RSUs Outstanding at January 1, 2013 242,000 Granted 106,369 Forfeited/expired (142,861 ) Outstanding at December 31, 2013 205,508 Granted 61,777 Cancelled (157,963 ) Grant of modified awards 157,963 Vested (1,766 ) Forfeited/expired (81,214 ) Outstanding at December 31, 2014 184,305 Granted 22,856 Settled (13,065 ) Vested (20,699 ) Forfeited/expired (14,124 ) Outstanding at December 31, 2015 159,273 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table breaks out the property, plant and equipment in further detail: December 31, (Dollars in millions) 2015 2014 (a) Land $ 7 $ 7 Buildings and building fixtures 47 43 Machinery and equipment 174 158 Software 15 14 Construction in progress 17 20 Property, plant and equipment, gross 260 242 Less: Accumulated depreciation (145 ) (133 ) Property, plant and equipment, net $ 115 $ 109 (a) Excludes property, plant and equipment included in “Current assets of discontinued operations” in the Consolidated Balance Sheets. |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Expenses | The following table breaks out the other accrued expenses in further detail: December 31, (Dollars in millions) 2015 2014 Taxes other than income taxes $ 6 $ 10 Interest payable 3 3 Return reserve 4 5 Accrued taxes payable 5 3 Accrued legal and professional fees 2 3 Accrued defective product 1 1 Accrued selling and marketing 5 2 Accrued freight 1 2 Accrued commissions expense — 1 Accrued workers compensation 1 — Accrued restructuring 1 3 Other 15 10 Other accrued expenses $ 44 $ 43 |
Schedule of Reconciliation of Changes in Return Reserve | A reconciliation of the changes in return reserves is presented in the following table. Years Ended December 31, (Dollars in millions) 2015 (2) 2014 (2) 2013 (1)(2) Beginning balance January 1 $ 5 $ 6 $ 8 Amounts charged to revenue 6 6 19 Returns processed (7 ) (7 ) (15 ) Classified to discontinued operations — — (6 ) Ending balance December 31 $ 4 $ 5 $ 6 (1) Includes the Chassis group, which is classified as discontinued operations that had amounts charged to revenue of $9 million in 2013 and returns processed of $6 million in 2013. The return reserve as of December 31, 2013 excludes $6 million in the Chassis group, which is classified in current liabilities of discontinued operations. (2) Excludes the ASA group, which is classified as discontinued operations as the amounts were immaterial for 2015, 2014 and 2013. |
Restructuring of Operations (Ta
Restructuring of Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Charges and Activity | The following table summarizes the restructuring charges and activity for the Company: (Dollars in millions) Total Balance at December 31, 2013 $ 5 Charges to expense: Employee termination benefits 8 Reductions: Cash payments (10 ) Balance at December 31, 2014 $ 3 Charges to expense: Employee termination benefits — Reductions: Cash payments (2 ) Balance at December 31, 2015 $ 1 |
Schedule of Restructuring Expenses by Segment | The following table shows the restructuring expenses by reportable segment: (Dollars in millions) 2015 2014 2013 Filtration $ — $ 1 $ — Corporate, eliminations and other — 6 6 Total from continuing operations $ — $ 7 $ 6 Discontinued operations — 1 — Total $ — $ 8 $ 6 |
Financial Information for Gua43
Financial Information for Guarantors and Non-Guarantors (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Guarantor Condensed Consolidating Statement of Operations | Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Operations For the Year Ended December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net sales $ — $ — $ 603 $ 442 $ (146 ) $ 899 Cost of sales — — (491 ) (339 ) 146 (684 ) Gross profit — — 112 103 — 215 Selling, general and administrative expenses — (46 ) (50 ) (36 ) — (132 ) Operating (loss) profit — (46 ) 62 67 — 83 Other income and expense, net — (3 ) (2 ) (2 ) — (7 ) Interest expense — (51 ) — (4 ) — (55 ) (Loss) income from continuing operations before income tax provision and equity in (loss) income, net of tax — (100 ) 60 61 — 21 Income tax provision — (3 ) (2 ) (15 ) — (20 ) Equity in (loss) income, net of tax (72 ) 31 (27 ) — 68 — Net (loss) income from continuing operations (72 ) (72 ) 31 46 68 1 Loss from discontinued operations, net of tax — — — (73 ) — (73 ) Net (loss) income $ (72 ) $ (72 ) $ 31 $ (27 ) $ 68 $ (72 ) Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Operations For the Year Ended December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net sales $ — $ — $ 684 $ 444 $ (158 ) $ 970 Cost of sales — — (539 ) (345 ) 158 (726 ) Gross profit — — 145 99 — 244 Selling, general and administrative expenses — (39 ) (68 ) (36 ) — (143 ) Operating (loss) profit — (39 ) 77 63 — 101 Other income and expense, net — (3 ) (1 ) (3 ) — (7 ) Interest expense — (55 ) — (1 ) — (56 ) (Loss) income from continuing operations before income tax provision and equity in income (loss), net of tax — (97 ) 76 59 — 38 Income tax provision — (8 ) — — — (8 ) Equity in income (loss), net of tax 81 186 84 — (351 ) — Net income (loss) from continuing operations 81 81 160 59 (351 ) 30 Income from discontinued operations, net of tax — — 26 25 — 51 Net income (loss) $ 81 $ 81 $ 186 $ 84 $ (351 ) $ 81 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Operations For the Year Ended December 31, 2013 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net sales $ — $ — $ 628 $ 426 $ (144 ) $ 910 Cost of sales — — (506 ) (325 ) 144 (687 ) Gross profit — — 122 101 — 223 Selling, general and administrative expenses — (46 ) (63 ) (32 ) — (141 ) Operating (loss) profit — (46 ) 59 69 — 82 Loss on extinguishment of debt — (15 ) — — — (15 ) Other income and expense, net — (1 ) — (2 ) — (3 ) Interest expense — (72 ) — (1 ) — (73 ) (Loss) income from continuing operations before income tax benefit (provision) and equity in income (loss), net of tax — (134 ) 59 66 — (9 ) Income tax benefit (provision) — 2 — (16 ) — (14 ) Equity in income (loss), net of tax 7 139 61 (2 ) (207 ) (2 ) Net income (loss) from continuing operations 7 7 120 48 (207 ) (25 ) Income from discontinued operations, net of tax — — 19 13 — 32 Net income (loss) $ 7 $ 7 $ 139 $ 61 $ (207 ) $ 7 |
Guarantor Condensed Consolidating Statement of Comprehensive Income | Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net (loss) income $ (72 ) $ (72 ) $ 31 $ (27 ) $ 68 $ (72 ) Other comprehensive (loss) income, net of tax: Pension liability adjustment (1 ) (1 ) — (1 ) 2 (1 ) Change in fair value of interest rate swaps (4 ) (4 ) — — 4 (4 ) Reclassification into earnings from interest rate swaps 2 2 — — (2 ) 2 Change in fair value of derivatives 1 1 — — (1 ) 1 Reclassification into earnings from derivatives (1 ) (1 ) — — 1 (1 ) Change in foreign currency translation adjustments 7 7 — 7 (14 ) 7 Total other comprehensive income 4 4 — 6 (10 ) 4 Total comprehensive (loss) income $ (68 ) $ (68 ) $ 31 $ (21 ) $ 58 $ (68 ) Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net income (loss) $ 81 $ 81 $ 186 $ 84 $ (351 ) $ 81 Other comprehensive income (loss), net of tax: Pension liability adjustment 1 1 — 1 (2 ) 1 Change in fair value of interest rate swaps (8 ) (8 ) — — 8 (8 ) Reclassification into earnings from interest rate swaps 2 2 — 2 (4 ) 2 Change in foreign currency translation adjustments (28 ) (28 ) — (28 ) 56 (28 ) Total other comprehensive (loss) income (33 ) (33 ) — (25 ) 58 (33 ) Total comprehensive income (loss) $ 48 $ 48 $ 186 $ 59 $ (293 ) $ 48 Guarantor Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2013 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Net income (loss) $ 7 $ 7 $ 139 $ 61 $ (207 ) $ 7 Other comprehensive income (loss), net of tax: Pension liability adjustment 1 1 — 1 (2 ) 1 Change in fair value of interest rate swaps 9 9 — — (9 ) 9 Reclassification into earnings from interest rate swaps (2 ) (2 ) — — 2 (2 ) Change in foreign currency translation adjustments (19 ) (19 ) — (19 ) 38 (19 ) Total other comprehensive (loss) income (11 ) (11 ) — (18 ) 29 (11 ) Total comprehensive (loss) income $ (4 ) $ (4 ) $ 139 $ 43 $ (178 ) $ (4 ) |
Guarantor Condensed Consolidating Balance Sheet | Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Balance Sheet December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Assets Current assets: Cash and cash equivalents $ — $ 1 $ — $ 27 $ — $ 28 Restricted cash — — — 6 — 6 Accounts receivable — (1 ) 35 46 — 80 Inventories, net — (2 ) 94 74 — 166 Other current assets — — — 20 — 20 Total current assets — (2 ) 129 173 — 300 Property, plant and equipment, net — 1 63 51 — 115 Investments and other assets — 131 37 5 — 173 Intercompany investments (308 ) 454 719 — (865 ) — Intercompany (payables) receivables — (154 ) (422 ) 576 — — Total assets $ (308 ) $ 430 $ 526 $ 805 $ (865 ) $ 588 Liabilities and Equity Current liabilities: Accounts payable $ — $ 6 $ 55 $ 25 $ — $ 86 Notes payable — 148 — 30 — 178 Other accrued expenses — 10 16 18 — 44 Accrued payroll and employee benefits — 2 1 5 — 8 Current liabilities of discontinued operations — 6 — — — 6 Total current liabilities — 172 72 78 — 322 Long-term debt — 562 — — — 562 Deferred employee benefits and noncurrent liabilities — 4 — 8 — 12 Total liabilities — 738 72 86 — 896 Total shareholder’s (deficit) equity (308 ) (308 ) 454 719 (865 ) (308 ) Total liabilities and equity $ (308 ) $ 430 $ 526 $ 805 $ (865 ) $ 588 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Balance Sheet December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Eliminations Consolidated Total Assets Current assets: Cash and cash equivalents $ — $ 10 $ — $ 16 $ — $ 26 Restricted cash — — — 4 — 4 Accounts receivable — — 44 45 — 89 Inventories, net — — 98 45 — 143 Other current assets — 44 1 35 — 80 Current assets of discontinued operations — — — 199 — 199 Total current assets — 54 143 344 — 541 Property, plant and equipment, net — 1 57 51 — 109 Investments and other assets — 121 36 12 — 169 Intercompany investments (221 ) 386 747 — (912 ) — Intercompany receivables (payables) — 48 (508 ) 460 — — Total assets $ (221 ) $ 610 $ 475 $ 867 $ (912 ) $ 819 Liabilities and Equity Current liabilities: Accounts payable $ — $ 10 $ 70 $ 19 $ — $ 99 Notes payable — — — 19 — 19 Other accrued expenses — 15 15 13 — 43 Accrued payroll and employee benefits — 9 4 3 — 16 Current liabilities of discontinued operations — — — 58 — 58 Total current liabilities — 34 89 112 — 235 Long-term debt — 792 — — — 792 Deferred employee benefits and noncurrent liabilities — 5 — 8 — 13 Total liabilities — 831 89 120 — 1,040 Total shareholder’s (deficit) equity (221 ) (221 ) 386 747 (912 ) (221 ) Total liabilities and equity $ (221 ) $ 610 $ 475 $ 867 $ (912 ) $ 819 |
Guarantor Condensed Consolidating Statement of Cash Flows | Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Elimination Consolidated Total Operating activities Net cash provided by operating activities $ 21 $ 5 $ 14 $ 2 $ (21 ) $ 21 Investing activities Proceeds from sales of assets — 91 — — — 91 Change in restricted cash — — — (2 ) — (2 ) Additions to property, plant and equipment — (1 ) (14 ) (13 ) — (28 ) Net cash provided by (used in) investing activities — 90 (14 ) (15 ) — 61 Financing activities Repayments of other debt (21 ) — — (17 ) 21 (17 ) Proceeds from other debt — — — 28 — 28 Dividend to shareholder — (21 ) — — — (21 ) Repayments of term loans — (83 ) — — — (83 ) Proceeds from stock options exercise — 1 — — — 1 Other financing activities — (1 ) — — — (1 ) Net cash (used in) provided by financing activities (21 ) (104 ) — 11 21 (93 ) Effect of exchange rates on cash — — — (6 ) — (6 ) Change in cash and cash equivalents — (9 ) — (8 ) — (17 ) Cash and cash equivalents at beginning of period — 10 — 35 — 45 Cash and cash equivalents at end of period $ — $ 1 $ — $ 27 $ — $ 28 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Elimination Consolidated Total Operating activities Net cash provided by (used in) operating activities $ 66 $ (25 ) $ 13 $ 32 $ (66 ) $ 20 Investing activities Proceeds from sales of assets — 149 — — — 149 Change in restricted cash — — — (4 ) — (4 ) Additions to property, plant and equipment — — (13 ) (13 ) — (26 ) Proceeds from sale of equity method investment — 4 — — — 4 Other investing activities — 3 — — — 3 Net cash provided by (used in) investing activities — 156 (13 ) (17 ) — 126 Financing activities Repayments of other debt (66 ) — — (10 ) 66 (10 ) Proceeds from other debt — — — 7 — 7 Dividend to shareholder — (66 ) — — — (66 ) Repayments of term loans — (123 ) — — — (123 ) Net cash used in financing activities (66 ) (189 ) — (3 ) 66 (192 ) Effect of exchange rates on cash — — — (10 ) — (10 ) Change in cash and cash equivalents — (58 ) — 2 — (56 ) Cash and cash equivalents at beginning of period — 68 — 33 — 101 Cash and cash equivalents at end of period $ — $ 10 $ — $ 35 $ — $ 45 Affinia Group Intermediate Holdings Inc. Guarantor Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 (Dollars in millions) Parent Issuer Guarantor Non- Guarantor Elimination Consolidated Total Operating activities Net cash provided by operating activities $ 352 $ 61 $ 17 $ 21 $ (352 ) $ 99 Investing activities Investments in companies, net of cash acquired — — — (1 ) — (1 ) Additions to property, plant and equipment — (1 ) (17 ) (13 ) — (31 ) Net cash used in investing activities — (1 ) (17 ) (14 ) — (32 ) Financing activities Repayment on secured notes — (195 ) — — — (195 ) Repayment on subordinated notes — (367 ) — — — (367 ) Dividend to shareholder (352 ) (352 ) — — 352 (352 ) Repayment on term loans — (3 ) — — — (3 ) Payment of deferred financing costs — (15 ) — — — (15 ) Proceeds from term loans — 667 — — — 667 Proceeds from senior notes — 250 — — — 250 Net cash used in financing activities (352 ) (15 ) — — 352 (15 ) Effect of exchange rates on cash — — — (2 ) — (2 ) Change in cash and cash equivalents — 45 — 5 — 50 Cash and cash equivalents at beginning of period — 23 — 28 — 51 Cash and cash equivalents at end of period $ — $ 68 $ — $ 33 $ — $ 101 |
Reconciliation of Previously 44
Reconciliation of Previously Reported Amounts to Amounts Revised and Restated (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quantifying Prior Year Misstatements Corrected In Current Year Financial Statements [Abstract] | |
Summary of Impacts of Changes on Selected Financial Amounts Within Accompanying Consolidated Financial Statements | The impacts of these changes on selected financial amounts within the accompanying consolidated financial statements are summarized below: Year Ended December 31, 2014 Consolidated Statement of Operations: As Previously Reported (1) Reclassification of Discontinued Operations (2) Correction of Prior Period Misstatement (3) As Reclassified and Restated (4) Net sales $ 1,396 $ (421 ) $ (5 ) $ 970 Cost of sales (1,056 ) 338 (8 ) (726 ) Gross profit 340 (83 ) (13 ) 244 Selling, general and administrative expenses (199 ) 51 5 (143 ) Operating profit 141 (32 ) (8 ) 101 Other income and expense, net (13 ) — 6 (7 ) Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax 72 (32 ) (2 ) 38 Income tax provision (19 ) 10 1 (8 ) Net (loss) income from continuing operations 53 (22 ) (1 ) 30 (Loss) income from discontinued operations, net of tax 29 22 — 51 Net (loss) income 82 — (1 ) 81 Net (loss) income attributable to the Company $ 82 $ — $ (1 ) $ 81 Net (loss) income 82 — (1 ) 81 Total comprehensive (loss) income $ 49 $ — $ (1 ) $ 48 Year Ended December 31, 2013 Consolidated Statement of Operations: As Previously Reported (1) Reclassification of Discontinued Operations (2) Correction of Prior Period Misstatement (3) As Reclassified and Restated (4) Net sales $ 1,361 $ (446 ) $ (5 ) $ 910 Cost of sales (1,043 ) 356 — (687 ) Gross profit 318 (90 ) (5 ) 223 Selling, general and administrative expenses (200 ) 55 4 (141 ) Operating profit 118 (35 ) (1 ) 82 Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax 29 (37 ) (1 ) (9 ) Income tax provision (22 ) 10 (2 ) (14 ) Net (loss) income from continuing operations 5 (27 ) (3 ) (25 ) (Loss) income from discontinued operations, net of tax 5 27 — 32 Net (loss) income 10 — (3 ) 7 Net (loss) income attributable to the Company $ 10 $ — $ (3 ) $ 7 Net (loss) income 10 — (3 ) 7 Total comprehensive (loss) income $ (1 ) $ — $ (3 ) $ (4 ) Year Ended December 31, 2014 Consolidated Balance Sheet: As Previously Reported (1) Reclassification of Discontinued Operations (2) Correction of Prior Period Misstatement (3)(5) As Reclassified and Restated (4) Assets Trade accounts receivable $ 145 $ (56 ) $ — $ 89 Inventories, net 214 (70 ) (1 ) 143 Property, plant and equipment, net 123 (14 ) — 109 Other intangible assets, net 54 — (1 ) 53 Deferred income taxes 97 — — 97 Accumulated deficit Accumulated deficit (622 ) — (2 ) (624 ) Statement of shareholder’s equity (deficit): Year Beginning January 1, 2013 Beginning accumulated deficit, as previously reported (1) $ (296 ) Prior-period adjustment (3) 2 Beginning accumulated deficit, as restated (4) $ (294 ) (1 ) Amounts reported in the Company’s 2014 Annual Report on Form 10-K. (2) Reflects the effect of reclassifying the former ASA segment to discontinued operations for the years ended December 31, 2014 and 2013, and as of December 31, 2014, to conform to current presentation. (3) Reflects the correction of misstatements identified related to previously issued financial statements related to inventory, property, plant and equipment, intangible assets, income taxes and liabilities associated with customer cash discounts. In addition, these numbers reflect the correction of classifications related to previously issued financial statements between net sales and selling, general and administrative expenses, other expense and cost of goods sold. (4) Reflects the resulting amounts in the accompanying Consolidated Statements of Operations for the years ended December 31, 2014 and 2013, and in the accompanying Consolidated Balance Sheets as of December 31, 2014. (5) Reflects the correction of misstatements identified related to previously issued financial statements and notes to the financial statements. Due to the immateriality of certain misstatements, certain amounts in the column “Correction of Prior Period Misstatement” (“Trade accounts receivable” and “Property, plant and equipment, net”) round to zero and are presented as such. However, all amounts reflected in the “As Reclassified and Restated” column represent the actual amounts reported on the Consolidated Balance Sheets. |
Description of Business and B45
Description of Business and Basis of Presentation - Additional Information (Detail) - USD ($) | Aug. 13, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Net sales | $ 899,000,000 | $ 970,000,000 | $ 910,000,000 | |
Selling, general and administrative expenses | (132,000,000) | (143,000,000) | (141,000,000) | |
Other income and expense, net | $ (7,000,000) | (7,000,000) | (3,000,000) | |
Amortization of Intangible Asset [Member] | ||||
Business Acquisition [Line Items] | ||||
Misstatement of company's consolidated financial statements | 1,000,000 | |||
Work-in-Process and Reserve for Excess and Obsolete Inventory [Member] | ||||
Business Acquisition [Line Items] | ||||
Misstatement of company's consolidated financial statements | 1,000,000 | |||
Accumulated Deficit, Shareholders’ Equity, and Total Equity [Member] | ||||
Business Acquisition [Line Items] | ||||
Misstatement of company's consolidated financial statements | 2,000,000 | |||
Income from Continuing Operations [Member] | ||||
Business Acquisition [Line Items] | ||||
Misstatement of company's consolidated financial statements | 1,000,000 | 3,000,000 | ||
Maximum [Member] | Expected Customer Cash Discounts [Member] | ||||
Business Acquisition [Line Items] | ||||
Misstatement of company's consolidated financial statements | 1,000,000 | 1,000,000 | ||
Maximum [Member] | Income Tax Expense (Benefit) [Member] | ||||
Business Acquisition [Line Items] | ||||
Misstatement of company's consolidated financial statements | (1,000,000) | (1,000,000) | ||
Maximum [Member] | Work-in-Process and Reserve for Excess and Obsolete Inventory [Member] | ||||
Business Acquisition [Line Items] | ||||
Misstatement of company's consolidated financial statements | 1,000,000 | |||
Restatement Adjustment [Member] | ||||
Business Acquisition [Line Items] | ||||
Net sales | (5,000,000) | (5,000,000) | ||
Selling, general and administrative expenses | 5,000,000 | $ 4,000,000 | ||
Cost of goods sold | (6,000,000) | |||
Other income and expense, net | $ 6,000,000 | |||
MANN+HUMMEL Holding GmbH [Member] | ||||
Business Acquisition [Line Items] | ||||
Merger agreement terms and conditions | the terms and conditions set forth in the Merger Agreement, the aggregate merger consideration payable to the shareholders of Holdings and the holders of restricted stock units and phantom shares referred to in the Merger Agreement (collectively, “Sellers”), is $513.1 million (i) minus adjustments reflecting transaction expenses, a $10 million escrow to cover limited indemnities and an amount reserved for the payment of expenses incurred by the sellers’ representative, (ii) plus adjustments reflecting adjusted net proceeds from the sale of the Company’s Brazilian, Argentinian and Uruguayan operations (collectively, the “ASA Transactions”), (iii) plus and a daily interest factor applied to the purchase price. | |||
Merger consideration payable to sellers | $ 513,100,000 | |||
Merger agreement escrow deposit | $ 10,000,000 | |||
Issued and outstanding shares maximum holding percentage by holders post merger agreement | 5.00% | |||
Merger agreement termination, description | merger has not closed within eight months after the date of the Merger Agreement, extended up to sixty days if necessary for Holdings to complete the ASA Transactions (the “Outside Date”) or in the event there is a breach of a representation, warranty, covenant or agreement by the other party which cannot be cured by the Outside Date. | |||
Merger agreement closing period | 8 months | |||
Merger agreement closing period extension | 60 days |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Percentage of sales to its largest customers | 34.00% | 33.00% | 33.00% |
Percentage of net sales to its current second largest customers | 11.00% | 9.00% | 7.00% |
Percentage of accounts receivable to total accounts receivable | 50.00% | 45.00% | |
Gains (loss) arising from foreign currency transactions | $ (6) | $ (13) | $ (6) |
Cash and cash equivalents description | Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. | ||
Deferred financing costs | $ 10 | 14 | 18 |
Amortization of deferred financing costs | 3 | 4 | |
Interest Expense [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortization of deferred financing costs | 3 | ||
Continuing Operations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advertising expenses | 17 | 17 | 16 |
Discontinuing Operations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advertising expenses | $ 2 | $ 3 | $ 5 |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of capital required by domestic and foreign subsidiary | 50.00% | ||
Estimated useful life, intangibles | 5 years | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 20 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 5 years | ||
Minimum [Member] | Tooling and Office Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 3 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 3 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, intangibles | 20 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 30 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 10 years | ||
Maximum [Member] | Tooling and Office Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 5 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life, properties | 10 years |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of operating segments included in continuing operations | 1 |
Segment Information - Reconcili
Segment Information - Reconciliation of Sales, Operating Profit, Total Assets, Depreciation and Amortization and Capital Expenditures (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 899 | $ 970 | $ 910 |
Operating Profit | 83 | 101 | 82 |
Total Assets | 588 | 819 | |
Depreciation and amortization | 19 | 22 | 22 |
Capital Expenditures | 28 | 26 | 31 |
Total from Continuing Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 17 | 19 | 18 |
Capital Expenditures | 27 | 22 | 22 |
Discontinued Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2 | 3 | 4 |
Capital Expenditures | 1 | 4 | 9 |
Assets of Discontinued Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 199 | ||
Operating Segments [Member] | Filtration Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 900 | 962 | 897 |
Operating Profit | 130 | 153 | 144 |
Total Assets | 453 | 442 | |
Depreciation and amortization | 17 | 17 | 15 |
Capital Expenditures | 26 | 22 | 22 |
Corporate, Eliminations and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (1) | 8 | 13 |
Operating Profit | (47) | (52) | (62) |
Total Assets | 135 | 178 | |
Depreciation and amortization | $ 2 | $ 3 | |
Capital Expenditures | $ 1 |
Segment Information - Reconci49
Segment Information - Reconciliation of Sales, Operating Profit, Total Assets, Depreciation and Amortization and Capital Expenditures (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 899 | $ 970 | $ 910 |
Operating Profit | 83 | 101 | 82 |
Corporate, Eliminations and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (1) | 8 | 13 |
Operating Profit | $ (47) | (52) | (62) |
Corporate, Eliminations and Other [Member] | ASA’s Venezuelan operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 9 | 13 | |
Operating Profit | $ 2 | $ 1 |
Segment Information - Net Sales
Segment Information - Net Sales by Geographic Region (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 899 | $ 970 | $ 910 |
Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 37 | 46 | 47 |
Poland [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 146 | 167 | 161 |
Venezuela [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 110 | 73 | 75 |
Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 58 | 60 | 54 |
Total Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 351 | 346 | 337 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 548 | $ 624 | $ 573 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $ 173 | $ 179 |
China [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 16 | 18 |
Poland [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 29 | 27 |
Other Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 9 | 9 |
Total Other Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | 54 | 54 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $ 119 | $ 125 |
Segment Information - Long-Li52
Segment Information - Long-Lived Assets by Geographic Region (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $ 173 | $ 179 |
ASA [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographic data for long-lived assets | $ 14 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) | Oct. 30, 2015USD ($) | Oct. 30, 2015BRL | Sep. 30, 2015USD ($)Property | Sep. 30, 2014USD ($) | May. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015BRL | Nov. 30, 2015USD ($) | Nov. 30, 2015BRL |
Pellegrino [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Proceeds from sale of the business, net of cash transferred | $ 58,000,000 | |||||||||
Pre-tax gain (loss) on sale of discontinued operation | $ (25,000,000) | |||||||||
Pellegrino [Member] | President [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Number of properties purchased | Property | 4 | |||||||||
Pellegrino [Member] | President [Member] | Maximum [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Proceeds from sale of the business, net of cash transferred | $ 1,000,000 | |||||||||
Book value of properties purchased | 1,000,000 | |||||||||
Automotiva [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Pre-tax gain (loss) on sale of discontinued operation | $ (32,000,000) | |||||||||
ASA Argentina and Uruguay Segment [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Proceeds from sale of the business, net of cash transferred | 5,000,000 | |||||||||
Pre-tax gain (loss) on sale of discontinued operation | (20,000,000) | |||||||||
Tax expense (benefit) on sale | 0 | |||||||||
ASA Argentina and Uruguay Segment [Member] | Tax Basis | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Pre-tax gain (loss) on sale of discontinued operation | $ (9,000,000) | |||||||||
ASA Brazil Sellers [Member] | Brazilian Bank [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Receipt of fund from escrow | $ 13,000,000 | BRL 49,000,000 | ||||||||
ASA Brazil Sellers [Member] | Pellegrino [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Selling price on discontinued operations | BRL | BRL 215,000,000 | |||||||||
ASA Brazil Sellers [Member] | Automotiva [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Selling price on discontinued operations | BRL | BRL 146,285,000 | |||||||||
Proceeds from sale of the business, net of cash transferred | $ 18,000,000 | BRL 146,285,000 | ||||||||
ASA Brazil Sellers [Member] | Automotiva [Member] | Brazilian Bank [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Merger agreement escrow deposit | BRL | BRL 71,000,000 | |||||||||
Chassis Group [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Selling price on discontinued operations | $ 150,000,000 | |||||||||
Pre-tax gain (loss) on sale of discontinued operation | $ 32,000,000 | $ 32,000,000 | ||||||||
Cash proceeds on sale of discontinued operations | 9,000,000 | 140,000,000 | ||||||||
Contingent consideration | $ 10,000,000 | |||||||||
Post closing purchase price adjustment | $ 1,000,000 | |||||||||
Capital loss valuation allowance | 18,000,000 | |||||||||
Tax expense related to the transaction | 6,000,000 | |||||||||
ASA [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Pre-tax gain (loss) on sale of discontinued operation | $ (77,000,000) | |||||||||
Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | ASA [Member] | ||||||||||
Long Lived Assets Held For Sale [Line Items] | ||||||||||
Concentration risk percentage | 31.00% |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Assets and Liabilities Included in Held for Sale (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets of discontinued operations | $ 199 | |
Current liabilities of discontinued operations | $ 6 | 58 |
ASA [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 19 | |
Trade accounts receivable | 56 | |
Inventories, net | 70 | |
Other current assets | 24 | |
Property, plant and equipment, net | 14 | |
Other assets | 16 | |
Current assets of discontinued operations | 199 | |
Accounts payable | 39 | |
Other accrued expenses | 6 | 19 |
Current liabilities of discontinued operations | $ 6 | $ 58 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Depreciation, Amortization and Capital Expenditure (Detail) - ASA [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 2 | $ 3 |
Capital expenditures | $ 1 | $ 4 |
Discontinued Operations - Sum56
Discontinued Operations - Summary of Components Included within Income (Loss) from Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income attributable to the Company | $ (73) | $ 51 | $ 32 |
Chassis Group [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 64 | 189 | |
Income from continuing operations before, income tax provision, and noncontrolling interest | 5 | 15 | |
Income tax provision | (2) | (10) | |
Net income attributable to the Company | $ 3 | $ 5 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Interest Rate Swaps and Our Currency Forward Contract Derivatives (Detail) - Income Approach [Member] - Interest Rate Swap [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset (Liability) Fair Value | $ (2) | $ 2 |
Level II [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset (Liability) Fair Value | $ (2) | $ 2 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 25, 2013 | |
Derivative [Line Items] | ||||
Reclassified from other comprehensive income (loss), net of tax into interest expense | $ 2,000,000 | $ 2,000,000 | ||
Gains or losses reclassified from other comprehensive income (loss), net of tax into earnings | 0 | 0 | ||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | 300,000,000 | 300,000,000 | $ 300,000,000 | |
Reclassified from other comprehensive income (loss), net of tax into interest expense | $ (2,000,000) | (2,000,000) | $ 2,000,000 | |
Term Loan B [Member] | ||||
Derivative [Line Items] | ||||
Term loan due date | Apr. 25, 2020 | |||
Short-Term Currency Forward Contracts [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | $ 3,000,000 | 34,000,000 | ||
Short-Term Currency Forward Contracts [Member] | Maximum [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments | 1,000,000 | $ (1,000,000) | $ 1,000,000 | |
Currency Forward Contracts [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | 22,000,000 | |||
Gain (loss) on derivative instruments | $ 4,000,000 |
Derivatives - Schedule of Notio
Derivatives - Schedule of Notional Amounts Associated with Currency Forward Contracts and Interest Rate Swaps (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Foreign Currency Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative notional amount | $ 25,000,000 | $ 70,000,000 |
Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative notional amount | $ 300,000,000 | $ 300,000,000 |
Derivatives - Schedule of Fai60
Derivatives - Schedule of Fair Value of Interest Rate Derivatives and Line Items in Consolidated Balance Sheets (Detail) - Derivatives Designated as Hedging Instruments [Member] - Interest Rate Contract [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value | $ 2 | |
Derivative Liability, Fair Value | $ 2 | |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value | $ 2 | |
Other Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value | $ 2 |
Derivatives - Schedule of Preta
Derivatives - Schedule of Pretax Gains and Losses Recognized on De-designated Derivatives and Line Items on Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments Gain Loss [Line Items] | ||
Pretax Gains (Losses) Recognized in Earnings | $ 3 | $ 1 |
Foreign Currency Forward Contracts [Member] | Other Nonoperating Income Expense | ||
Derivative Instruments Gain Loss [Line Items] | ||
Pretax Gains (Losses) Recognized in Earnings | $ 3 | $ 1 |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains and Losses Recognized on Cash Flow Hedges and Line Items on Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments Gain Loss [Line Items] | ||
Total Pretax Gains (Losses) Recorded in AOCI | $ 4 | $ 9 |
Total Pretax (Losses) Recognized in Earnings | 2 | 2 |
Interest Expense [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total Pretax (Losses) Recognized in Earnings | 2 | 2 |
Interest Rate Contract [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Total Pretax Gains (Losses) Recorded in AOCI | $ 4 | $ 9 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Line Items] | ||
Total debt | $ 740 | $ 811 |
Less: current portion | (178) | (19) |
Long-term debt | 562 | 792 |
7.75% Senior Notes, Due May 2021 [Member] | ||
Debt Disclosure [Line Items] | ||
Total debt | 250 | 250 |
Term Loan B-1, Due April 2016 [Member] | ||
Debt Disclosure [Line Items] | ||
Total debt | 148 | 175 |
Term Loan B-2, Due April 2020 [Member] | ||
Debt Disclosure [Line Items] | ||
Total debt | 312 | 367 |
Other Debt [Member] | ||
Debt Disclosure [Line Items] | ||
Total debt | $ 30 | $ 19 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Nov. 01, 2013 | Apr. 25, 2013 | |
Debt Disclosure [Line Items] | ||||
Long-term Debt | $ 740 | $ 811 | ||
Current maturities of long-term debt | $ 148 | |||
7.75% Senior Notes, Due May 2021 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity date | May 1, 2021 | May 1, 2021 | ||
Interest rate | 7.75% | 7.75% | 7.75% | 7.75% |
Long-term Debt | $ 250 | $ 250 | ||
Term Loan B-1, Due April 2016 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity date | Apr. 25, 2016 | Apr. 25, 2016 | ||
Long-term Debt | $ 148 | $ 175 | ||
Current maturities of long-term debt | $ 148 | |||
Term Loan B-2, Due April 2020 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity date | Apr. 25, 2020 | Apr. 25, 2020 | ||
Long-term Debt | $ 312 | $ 367 | ||
Other Debt [Member] | ||||
Debt Disclosure [Line Items] | ||||
Long-term Debt | 30 | 19 | ||
Other Debt [Member] | Poland [Member] | ||||
Debt Disclosure [Line Items] | ||||
Long-term Debt | 20 | 12 | ||
Other Debt [Member] | Venezuela [Member] | ||||
Debt Disclosure [Line Items] | ||||
Long-term Debt | $ 10 | $ 7 | ||
LIBOR plus interest rate | 80.00% | 90.00% |
Debt - Scheduled Maturities of
Debt - Scheduled Maturities of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Method Investments And Cost Method Investments [Abstract] | ||
2,016 | $ 178 | |
2,020 | 312 | |
2021 and thereafter | 250 | |
Total debt | $ 740 | $ 811 |
Debt - Schedule of Fair Value o
Debt - Schedule of Fair Value of Debt, Net of Discount (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Fair Value of Debt | $ 737 | $ 802 |
Senior Notes, Due May 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity date | May 1, 2021 | May 1, 2021 |
Book Value of Debt | $ 250 | $ 250 |
Fair Value Factor | 101.75% | 102.50% |
Fair Value of Debt | $ 254 | $ 256 |
Term Loan B-1, Due April 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity date | Apr. 25, 2016 | Apr. 25, 2016 |
Book Value of Debt | $ 148 | $ 175 |
Fair Value Factor | 99.63% | 97.88% |
Fair Value of Debt | $ 148 | $ 171 |
Term Loan B-2, Due April 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt maturity date | Apr. 25, 2020 | Apr. 25, 2020 |
Book Value of Debt | $ 312 | $ 367 |
Fair Value Factor | 97.88% | 97.00% |
Fair Value of Debt | $ 305 | $ 356 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Book Value of Debt | $ 30 | $ 19 |
Fair Value Factor | 100.00% | 100.00% |
Fair Value of Debt | $ 30 | $ 19 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
May. 31, 2014 | Dec. 31, 2015 | |
Line Of Credit Facility [Line Items] | ||
Indented amount of debt repayment | $ 66 | |
Chassis Group [Member] | ||
Line Of Credit Facility [Line Items] | ||
Cash received from discontinued operation | 149 | |
Term Loan B-1, Due April 2026 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Repayment of debt | 24 | $ 28 |
Term Loan B-2, Due April 2020 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Repayment of debt | $ 99 | $ 55 |
Debt - Additional Information -
Debt - Additional Information - New ABL Revolver (Detail) - ABL Revolver [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Apr. 25, 2013 | |
Line Of Credit Facility [Line Items] | ||
Outstanding credit facility | $ 0 | |
Additional availability of debt | 73,000,000 | |
Outstanding letters of credit | 7,000,000 | |
Borrowing base reserves | $ 1,000,000 | |
Debt maturity date | Apr. 25, 2018 | |
Administration fees and fronting fees, percentage | 0.125% | |
Percentage of fee payable increase | 2.00% | |
Line of credit facility borrowing base, percentage | 12.50% | |
Line of credit facility borrowing base | $ 12,500,000 | |
Cash dominion: Consecutive trading days threshold | 60 days | |
Covenant: Availability percentage of total borrowing base | 10.00% | |
Covenant: Availability dollar threshold | $ 10,000,000 | |
Fixed charge coverage ratio | 1.60% | |
Maximum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Unused commitment fee, percentage used if the commitments utilized | 0.25% | |
Percentage of commitment fee | 50.00% | |
Minimum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Unused commitment fee, percentage used if the commitments utilized | 0.375% | |
Fixed charge coverage ratio | 10.00% | |
U.S. Domestic Borrowers [Member] | ||
Line Of Credit Facility [Line Items] | ||
Borrowings | $ 175,000,000 | |
Sub-limit for letters of credit | 30,000,000 | |
Swingline facility | $ 15,000,000 |
Debt - Schedule of Interest Rat
Debt - Schedule of Interest Rate and Fees (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Level I [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | $ 50 |
Level I [Member] | Maximum [Member] | Base Rate Loans And Swingline Loans [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 1.00% |
Level I [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 2.00% |
Level II [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | $ 100 |
Level II [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | $ 50 |
Level II [Member] | Minimum [Member] | Base Rate Loans And Swingline Loans [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 0.75% |
Level II [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 1.75% |
Level III [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Average Aggregate Availability | $ 100 |
Level III [Member] | Minimum [Member] | Base Rate Loans And Swingline Loans [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 0.50% |
Level III [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Base Rate Loans and Swingline Loans | 1.50% |
Debt - Additional Information70
Debt - Additional Information - Indenture (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Nov. 01, 2013 | Apr. 25, 2013 | |
Line Of Credit Facility [Line Items] | ||||
Percentage ownership in guarantor subsidiaries | 100.00% | |||
Debt outstanding | $ 740 | $ 811 | ||
Minimum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Percentage of Trustees or holders of principal amount outstanding affected by default | 25.00% | |||
7.75% Senior Notes, Due May 2021 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Accrued interest rate | 7.75% | 7.75% | 7.75% | 7.75% |
Interest payment term | Semi-annually on May 1 and November 1 of each year | |||
Debt maturity date | May 1, 2021 | May 1, 2021 | ||
Debt outstanding | $ 250 | $ 250 |
Debt - Additional Information71
Debt - Additional Information - Term Loans Facility (Detail) | Apr. 25, 2013USD ($) | Mar. 31, 2016EUR (€) | Jun. 30, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Line Of Credit Facility [Line Items] | ||||||
Debt outstanding | $ 740,000,000 | $ 811,000,000 | ||||
Proceeds from term loan | 0 | 0 | $ 667,000,000 | |||
Amortization of debt discount | $ 0 | 0 | 1,000,000 | |||
Percentage of net proceeds from the incurrence of indebtedness other than permitted indebtedness | 100.00% | |||||
Percentage of net proceeds of asset sales including insurance or condemnation proceeds | 100.00% | |||||
Percentage of net proceeds of excess cash flow | 50.00% | |||||
Voluntary prepayments premium payable on term loan percentage | 1.00% | |||||
Interest rate for over due principal in excess of the rate applicable to base rate borrowings | 2.00% | |||||
Interest rate in excess of the rate applicable to base rate borrowings | 2.00% | |||||
Write-off interest expense for unamortized deferred financing costs associated with the redemption of Secured Notes | $ 1,000,000 | 1,000,000 | $ 8,000,000 | |||
Total deferred financing costs | $ 1,000,000 | |||||
Senior Notes [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Write-off interest expense for unamortized deferred financing costs associated with the redemption of Secured Notes | $ 5,000,000 | |||||
Total deferred financing costs | 14,000,000 | |||||
Interest expenses charged on unamortized deferred financing period | 2021-05 | |||||
MANN + HUMMEL Inc [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Term loan facility, payment terms | Interest on the loan is 3.25% per annum and is due and payable on December 31, 2016 or earlier if the Company makes a prepayment of the loan amount pursuant to the terms of the agreement. | |||||
MANN + HUMMEL Inc [Member] | Subsequent Event [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Term loan facility borrowing amount | € | € 140,000,000 | |||||
Term loan facility, maturity date | Dec. 31, 2016 | |||||
Term loan facility, interest rate | 3.25% | |||||
Term loan facility, payment date | Dec. 31, 2016 | |||||
Term Loan B-1 [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt outstanding | $ 200,000,000 | $ 148,000,000 | ||||
Debt offering price percentage | 99.75% | |||||
Proceeds from term loan | $ 199,000,000 | |||||
Amortization of debt discount | $ 1,000,000 | |||||
Amortization percentage per annum | 1.00% | |||||
Voluntary prepayments on term loan | Six months following April 25, 2013 | |||||
Interest expenses charged on unamortized deferred financing period | 2016-04 | |||||
Term Loan B-1 [Member] | Base Rate [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Margin for borrowings under term loan with respect to base rate | 1.75% | |||||
Term Loan B-1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Margin for borrowings under term loan with respect to base rate | 2.75% | |||||
LIBOR rate floor | 0.75% | |||||
Term Loan B-1 [Member] | MANN + HUMMEL Inc [Member] | Subsequent Event [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Term loan facility, maturity date | Apr. 25, 2016 | |||||
Term Loan B-2 [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt outstanding | $ 470,000,000 | $ 313,000,000 | ||||
Debt offering price percentage | 99.50% | |||||
Proceeds from term loan | $ 468,000,000 | |||||
Amortization of debt discount | $ 2,000,000 | $ 1,000,000 | ||||
Amortization percentage per annum | 1.00% | |||||
Voluntary prepayments on term loan | One year following April 25, 2013 | |||||
Interest expenses charged on unamortized deferred financing period | 2020-04 | |||||
Term Loan B-2 [Member] | Base Rate [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Margin for borrowings under term loan with respect to base rate | 2.50% | |||||
Term Loan B-2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Margin for borrowings under term loan with respect to base rate | 3.50% | |||||
LIBOR rate floor | 1.25% | |||||
New ABL Revolver [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest expenses charged on unamortized deferred financing period | 2018-04 | |||||
ABL Revolver [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Write-off interest expense for unamortized deferred financing costs associated with the redemption of Secured Notes | 3,000,000 | |||||
Total deferred financing costs | $ 1,000,000 | |||||
Maximum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Percentage of net proceeds of excess cash flow leverage targets maximum | 25.00% | |||||
Maximum [Member] | Term Loan B-1 [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Amortization of debt discount | $ 1,000,000 | |||||
Minimum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Percentage of net proceeds of excess cash flow leverage targets maximum | 0.00% |
Debt - Summarizes Deferred Fina
Debt - Summarizes Deferred Financing Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | |||
Beginning Balance | $ 14 | $ 18 | |
Amortization | (3) | (4) | |
Write-off of unamortized deferred financing costs | (1) | (1) | $ (8) |
Deferred financing costs | 1 | ||
Ending Balance | $ 10 | $ 14 | $ 18 |
Inventories - Summary of Invent
Inventories - Summary of Inventories Net and Excludes Amounts Included in Current Assets of Discontinued Operations (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 61 | $ 56 |
Work-in-process | 18 | 16 |
Finished goods | 87 | 71 |
Inventories, net | $ 166 | $ 143 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Non-cancelable operating leases in operations | $ 31,000,000 | ||
Rent expense from continuing operations | 8,000,000 | $ 8,000,000 | $ 8,000,000 |
Accrued for civil liability | 2,000,000 | $ 2,000,000 | |
Expected recoveries from third parties associated with outstanding or settled claims | $ 0 |
Commitments and Contingencies75
Commitments and Contingencies - Schedule of Future Minimum Rental Commitments under Non-Cancelable Operating Leases in Continuing Operations (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 6 |
2,017 | 6 |
2,018 | 5 |
2,019 | 5 |
2,020 | 5 |
Thereafter | 4 |
Total | $ 31 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Total current | $ 10 | $ 5 | $ 15 |
Deferred: | |||
Total deferred | 10 | 3 | (1) |
Income tax provision | 20 | 8 | 14 |
United States [Member] | |||
Deferred: | |||
U.S. federal and state | 5 | 15 | (7) |
Total Other Countries [Member] | |||
Current: | |||
Non-United States | 10 | 5 | 15 |
Deferred: | |||
Non-United States | $ 5 | $ (12) | $ 6 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Tax, Equity, Net of Tax and Noncontrolling Interest (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Line Items] | |||
Income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | $ 21 | $ 38 | $ (9) |
United States [Member] | |||
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Line Items] | |||
Income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | (40) | (23) | (64) |
Total Other Countries [Member] | |||
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Line Items] | |||
Income from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | $ 61 | $ 61 | $ 55 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating and other loss carryforwards | $ 123 | $ 128 |
Inventory reserves | 4 | 3 |
Expense accruals | 23 | 25 |
Depreciation & amortization | 2 | |
Other | 4 | 7 |
Subtotal | 154 | 165 |
Valuation allowance | (31) | (25) |
Deferred tax assets | 123 | 140 |
Deferred tax liabilities: | ||
Depreciation & amortization | 1 | |
Foreign earnings | 9 | 24 |
Other liabilities | 1 | |
Deferred tax liabilities | 10 | 25 |
Net deferred tax assets | 113 | 115 |
Balance Sheet Presentation: | ||
Current deferred taxes | 19 | |
Deferred income taxes | 113 | 97 |
Deferred employee benefits and other noncurrent liabilities | (1) | |
Net deferred tax assets | $ 113 | $ 115 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Examination [Line Items] | |
Temporary differences resulted upon a repatriation of assets from the subsidiary or a sale or liquidation | $ 46 |
Unrecognized tax benefits | 1 |
Accrued interest and penalties | 1 |
Accrued income tax expense | 1 |
United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | 288 |
State Domestic [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 277 |
State Domestic [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards, expiry date | 2,024 |
State Domestic [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards, expiry date | 2,035 |
Total Other Countries [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 13 |
2025 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 9 |
Net operating loss carryforwards, expiry date | 2,025 |
2026 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 36 |
Net operating loss carryforwards, expiry date | 2,026 |
2027 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 33 |
Net operating loss carryforwards, expiry date | 2,027 |
2028 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 74 |
Net operating loss carryforwards, expiry date | 2,028 |
2029 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 60 |
Net operating loss carryforwards, expiry date | 2,029 |
2030 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 31 |
Net operating loss carryforwards, expiry date | 2,030 |
2031 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 20 |
Net operating loss carryforwards, expiry date | 2,031 |
2032 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 10 |
Net operating loss carryforwards, expiry date | 2,032 |
2034 [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 15 |
Net operating loss carryforwards, expiry date | 2,034 |
2016 [Member] | Total Other Countries [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 1 |
Net operating loss carryforwards, expiry date | 2,016 |
2017 [Member] | Total Other Countries [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 2 |
Net operating loss carryforwards, expiry date | 2,017 |
2018 [Member] | Total Other Countries [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 8 |
Net operating loss carryforwards, expiry date | 2,018 |
2019 [Member] | Total Other Countries [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 1 |
Net operating loss carryforwards, expiry date | 2,019 |
2019 and Thereafter [Member] | Total Other Countries [Member] | |
Income Tax Examination [Line Items] | |
Net operating loss carryforwards | $ 1 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Effective Income Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% | |
Increases (reductions) resulting from: | ||||
State and local income taxes, net of federal income tax benefit | (5.90%) | (2.60%) | 22.20% | |
Valuation allowance | 27.40% | 2.60% | (22.20%) | |
Non-U.S. income | (51.70%) | (26.30%) | 100.00% | |
Foreign restructuring | (26.30%) | |||
U.S. Permanent Differences | [1] | 149.60% | 31.60% | (233.30%) |
Unrecognized Tax Benefits | [2] | (18.40%) | (77.80%) | |
Unremitted Earnings | (59.20%) | 26.30% | 22.20% | |
Effective income tax rate | 95.20% | 21.90% | (153.90%) | |
[1] | The U.S. Permanent Differences affecting the tax rate were primarily the result of deemed distributions from foreign subsidiaries | |||
[2] | The 2013 tax rate was negatively impacted by the recognition of an uncertain tax position resulting from an unfavorable ruling impacting the Company’s international operations. |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $ 1 | $ 8 | $ 1 |
Increases to tax positions | 7 | ||
Decreases to tax positions | (7) | ||
Ending Balance | $ 1 | $ 1 | $ 8 |
Accounts Receivable Factoring -
Accounts Receivable Factoring - Summary of Accounts Receivable Factoring (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitment Contingency And Related Party Transactions [Abstract] | ||
Gross accounts receivable factored | $ 360 | $ 467 |
Expenses associated with factoring of receivables | $ 3 | $ 4 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Goodwill | $ 3,000,000 | $ 3,000,000 | |
Reduction of goodwill as a result of tax adjustments | 0 | 0 | $ 0 |
Filtration [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 3,000,000 | $ 3,000,000 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite Lived Intangible Assets [Line Items] | |||
Intangible asset amortization | $ 1,000,000 | $ 1,000,000 | $ 3,000,000 |
Amortization for continuing operations | 1,000,000 | ||
Goodwill | 3,000,000 | 3,000,000 | |
Tax benefit reductions | 7,000,000 | 6,000,000 | |
Accumulated amortization related to the continuing operations for the intangibles | 44,000,000 | 43,000,000 | |
Customer Relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Tax benefit reductions | $ 2,000,000 | $ 3,000,000 | |
Weighted average amortization period | 19 years | ||
Developed Technology and Other Intangibles [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Tax benefit reductions | $ 1,000,000 | ||
Weighted average amortization period | 18 years | ||
2004 Initial Acquisition [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Goodwill | $ 0 | ||
Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense Period | 20 years | ||
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense Period | 5 years | ||
Brake North America and Asia Group [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization discontinued operations | $ 1,000,000 |
Other Intangible Assets - Other
Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | ||
Beginning balance | $ 53 | $ 60 |
Amortization | (1) | (1) |
Tax benefit reductions | (7) | (6) |
Ending balance | 45 | 53 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Beginning balance | 27 | 30 |
Tax benefit reductions | (4) | (3) |
Ending balance | 23 | 27 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Beginning balance | 23 | 27 |
Amortization | (1) | (1) |
Tax benefit reductions | (2) | (3) |
Ending balance | 20 | 23 |
Developed Technology and Other Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Beginning balance | 3 | 3 |
Tax benefit reductions | (1) | |
Ending balance | $ 2 | $ 3 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2014 | Dec. 31, 2012 | Dec. 02, 2010 | Aug. 25, 2010 | Jul. 20, 2005 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
New Awards issued | 350,000 | 350,000 | ||||||
Stock options exercised | 12,383 | |||||||
Stock options exercised per share price | $ 62.87 | |||||||
Proceeds from stock options exercise | $ 1 | $ 0 | $ 0 | |||||
Stock options granted | 0 | 0 | 0 | |||||
Selling General And Administrative Expense | $ 132 | $ 143 | $ 141 | |||||
Cypress Scenario [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock compensation expense | 17 | |||||||
IPO Scenario [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock compensation expense | $ 17 | |||||||
Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs vesting period, year | Jan. 1, 2018 | |||||||
Minimum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs vesting period, year | Jan. 1, 2016 | |||||||
2005 Stock Plan [Member] | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
New Awards issued | 350,000 | 300,000 | 227,000 | |||||
2005 Stock Plan [Member] | Minimum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
New Awards issued | 300,000 | 227,000 | ||||||
Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Expiration date of options | Aug. 1, 2015 | |||||||
Unvested options outstanding | 0 | |||||||
Restricted Stock Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
New Awards issued | 54,009 | 54,009 | ||||||
Performance and market-based RSUs | 190,478 | 185,365 | ||||||
Outstanding RSUs subject to vesting | 10,593 | |||||||
Selling General And Administrative Expense | $ 3 | |||||||
RSUs granted to employees | 22,856 | 61,777 | 106,369 | |||||
Shares forfeited | 14,124 | 81,214 | 142,861 | |||||
RSUs granted to employees vesting period | 4 years | |||||||
RSUs granted to employees fair value | $ 164.86 | |||||||
Performance and market-based RSUs | 159,273 | 184,305 | 205,508 | 242,000 | ||||
Restricted Stock Units [Member] | Performance And Market Based Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Performance and market-based RSUs | 98,913 | |||||||
RSUs granted to employees | 20,356 | |||||||
Restricted Stock Units [Member] | Time Based Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Performance and market-based RSUs | 60,360 | |||||||
RSUs granted to employees | 2,500 | |||||||
Restricted Stock Units [Member] | Employees [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs granted to employees | 61,071 | |||||||
Restricted Stock Units [Member] | Modification [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Performance and market-based RSUs | 201,977 | |||||||
Restricted Stock Units [Member] | After Modification [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
New Awards issued | 117,231 | |||||||
Percentage of performance-based awards | 50.00% | |||||||
Percentage of time-based awards occurring in four annual installments | 50.00% | |||||||
Percent of awards settled via issuance of RSUs | 40.00% | |||||||
Percent of redemption of awards at cash value | 60.00% | |||||||
Restricted Stock Units [Member] | Before Modification [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
New Awards issued | 84,746 | |||||||
Restricted Stock Units [Member] | Cypress Scenario [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of minimum common equity interests resulting in payment of cash and marketable securities | 50.00% | |||||||
Selling General And Administrative Expense | $ 3 | |||||||
Shares forfeited | 92,514 | |||||||
Percentage of anticipated value equal to severance payment | 30.00% | |||||||
Stock compensation expense | $ 23 | |||||||
Restricted Stock Units [Member] | IPO Scenario [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $ 225 | |||||||
Trading period of common stock (days) | 60 days | |||||||
Stock compensation expense | $ 23 | |||||||
Restricted Stock Units [Member] | Adjusted IPO Scenario [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $ 225 | |||||||
Restricted Stock Units [Member] | Adjusted IPO Scenario [Member] | Reduced Vesting Point [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | 159.30 | |||||||
Restricted Stock Units [Member] | Adjusted Cypress Scenario [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | 200 | |||||||
Restricted Stock Units [Member] | Adjusted Cypress Scenario [Member] | Reduced Vesting Point [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Average of closing price of common stock | $ 141.60 | |||||||
Stock Based Compensation Expense [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Selling General And Administrative Expense | 3 | $ 3 | ||||||
Time-Based RSUs [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Estimated fair value grants | 15 | |||||||
Equity Classified Restricted Stock Units (RSU) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs recognized in earnings | 4 | |||||||
Liability Classified Restricted Stock Units (RSU) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
RSUs recognized in earnings | $ 3 | |||||||
Deferred Compensation Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Additional notional investment | 25.00% | |||||||
Deferred compensation expense | $ 0 | $ 0 | $ 2 |
Stock Incentive Plan - Schedule
Stock Incentive Plan - Schedule of Stock Plan Balances for Restricted Stock Units, Stock Options, Deferred Compensation Shares and Stock Awards (Detail) - shares | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options | 19,568 | 23,355 | 23,835 | ||
Shares available to award | 120,618 | 112,940 | |||
Number of shares of common stock subject to awards | 350,000 | 350,000 | |||
Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock units | 190,478 | 185,365 | |||
Number of shares of common stock subject to awards | 54,009 | 54,009 | |||
Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options | 15,383 | 22,568 | |||
Deferred Compensation Shares [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Deferred compensation shares | 23,358 | 28,964 | |||
Stock Award [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock award | 163 | 163 |
Stock Incentive Plan - Schedu88
Stock Incentive Plan - Schedule of Outstanding Stock Options (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning Balance | 19,568 | 23,355 | 23,835 |
Exercised | (12,383) | ||
Forfeited/expired | (7,185) | (3,787) | (480) |
Ending Balance | 19,568 | 23,355 |
Stock Incentive Plan - Schedu89
Stock Incentive Plan - Schedule of Weighted-Average Monte Carlo Fair Value Assumptions (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Cypress Scenario [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected expense | $ 17 |
Cypress Scenario [Member] | Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted-average effective term | 15 days |
Weighted-average fair value of an RSU | $ / shares | $ 173.66 |
Expected expense | $ 23 |
IPO Scenario [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected expense | $ 17 |
IPO Scenario [Member] | Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted-average effective term | 2 months 27 days |
Weighted-average fair value of an RSU | $ / shares | $ 169.30 |
Expected expense | $ 23 |
Stock Incentive Plan - Schedu90
Stock Incentive Plan - Schedule of Restricted Stock Units (Detail) - Restricted Stock Units [Member] - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance | 184,305 | 205,508 | 242,000 |
Granted | 22,856 | 61,777 | 106,369 |
Settled | (13,065) | ||
Cancelled | (157,963) | ||
Grant of modified awards | 157,963 | ||
Vested | (20,699) | (1,766) | |
Forfeited/expired | (14,124) | (81,214) | (142,861) |
Ending Balance | 159,273 | 184,305 | 205,508 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 260 | $ 242 |
Less: Accumulated depreciation | (145) | (133) |
Property, plant and equipment, net | 115 | 109 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7 | 7 |
Buildings and Building Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 47 | 43 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 174 | 158 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15 | 14 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 17 | $ 20 |
Property, Plant and Equipment92
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expenses | $ 16 | $ 16 | $ 15 |
Property, plant and equipment depreciation method | straight-line basis |
Other Accrued Expenses - Schedu
Other Accrued Expenses - Schedule of Other Accrued Expenses (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other Income And Expenses [Abstract] | |||
Taxes other than income taxes | $ 6 | $ 10 | |
Interest payable | 3 | 3 | |
Return reserve | 4 | 5 | |
Accrued taxes payable | 5 | 3 | |
Accrued legal and professional fees | 2 | 3 | |
Accrued defective product | 1 | 1 | |
Accrued selling and marketing | 5 | 2 | |
Accrued freight | 1 | 2 | |
Accrued commissions expense | 1 | ||
Accrued workers compensation | 1 | ||
Accrued restructuring | 1 | 3 | $ 5 |
Other | 15 | 10 | |
Other accrued expenses | $ 44 | $ 43 |
Other Accrued Expenses - Sche94
Other Accrued Expenses - Schedule of Reconciliation of Changes in Return Reserves (Detail) - Return Reserves [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 5 | $ 6 | $ 8 |
Amounts charged to revenue | 6 | 6 | 19 |
Returns processed | (7) | (7) | (15) |
Classified to discontinued operations | (6) | ||
Balance at end of period | $ 4 | $ 5 | $ 6 |
Other Accrued Expenses - Sche95
Other Accrued Expenses - Schedule of Reconciliation of Changes in Return Reserves (Parenthetical) (Detail) - Chassis Group [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |
Amounts charged to revenue | $ 9 |
Returns processed | 6 |
Return reserve included (excluded) in discontinued operations | $ 6 |
Restructuring of Operations - S
Restructuring of Operations - Schedule of Restructuring Charges and Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 3 | $ 5 |
Reductions: | ||
Cash payments | (2) | (10) |
Ending balance | $ 1 | 3 |
Employee Termination Benefits [Member] | ||
Charges to expense: | ||
Restructuring expenses | $ 8 |
Restructuring of Operations -97
Restructuring of Operations - Schedule of Restructuring Expenses by Segment (Detail) - Reportable Subsegments [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses by segment | $ 8 | $ 6 |
Continuing Operations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses by segment | 7 | 6 |
Filtration Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses by segment | 1 | |
Brake North America and Asia Group [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses by segment | 1 | |
Corporate, Eliminations and Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses by segment | $ 6 | $ 6 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions Supervisory And Other Services [Line Items] | |||
Percentage of total net sales from continuing operations | 34.00% | 33.00% | 33.00% |
Genuine Parts Company [Member] | |||
Related Party Transactions Supervisory And Other Services [Line Items] | |||
Percentage of total net sales from continuing operations | 34.00% | 33.00% | 33.00% |
Venezuelan Operations - Additio
Venezuelan Operations - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015VEF / $ | Mar. 31, 2014USD ($)VEF / $ | Dec. 31, 2015 | Feb. 29, 2016VEF / $ | Feb. 18, 2016VEF / $ | Sep. 30, 2015VEF / $ | Mar. 31, 2015VEF / $ | Dec. 31, 2014VEF / $ | |
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Conversion rate, VEF to U.S. Dollar | 6.3 | |||||||
Currency devaluation | $ | $ 7 | |||||||
Subsequent Event [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Conversion rate, VEF to U.S. Dollar | 10 | |||||||
Venezuela [Member] | Sales Revenue Net [Member] | Geographic Concentration Risk [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Concentration risk percentage | 12.00% | |||||||
Maximum [Member] | Venezuela [Member] | Total Assets [Member] | Geographic Concentration Risk [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Concentration risk percentage | 10.00% | |||||||
Maximum [Member] | Venezuela [Member] | Total Liabilities [Member] | Geographic Concentration Risk [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Concentration risk percentage | 10.00% | |||||||
Filtration Segment [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Currency devaluation | $ | 5 | |||||||
ASA [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Currency devaluation | $ | $ 2 | |||||||
SICAD 1 [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Conversion rate, VEF to U.S. Dollar | 10.7 | 12 | ||||||
Percentage of currency depreciation | 6.70% | |||||||
SICAD 1 [Member] | Minimum [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Conversion rate, VEF to U.S. Dollar | 12 | 12.8 | 10.7 | |||||
SICAD 1 [Member] | Maximum [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Conversion rate, VEF to U.S. Dollar | 12.8 | 13.5 | 12 | |||||
SICAD 2 [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Conversion rate, VEF to U.S. Dollar | 50.86 | |||||||
SIMADI [Member] | Subsequent Event [Member] | ||||||||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||||||||
Conversion rate, VEF to U.S. Dollar | 203 |
Financial Information for Gu100
Financial Information for Guarantors and Non-Guarantors - Additional Information (Detail) - Senior Notes [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Apr. 25, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||
Aggregate principal amount | $ 250 | |
Book Value of Debt | $ 250 |
Financial Information for Gu101
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Net sales | $ 899 | $ 970 | $ 910 |
Cost of sales | (684) | (726) | (687) |
Gross profit | 215 | 244 | 223 |
Selling, general and administrative expenses | (132) | (143) | (141) |
Operating profit | 83 | 101 | 82 |
Loss on extinguishment of debt | 0 | 0 | (15) |
Other income and expense, net | (7) | (7) | (3) |
Interest expense | (55) | (56) | (73) |
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | 21 | 38 | (9) |
Income tax provision | (20) | (8) | (14) |
Equity in (loss) income, net of tax | (2) | ||
Net income (loss) from continuing operations | 1 | 30 | (25) |
Income (loss) from discontinued operations, net of tax | (73) | 51 | 32 |
Net (loss) income | (72) | 81 | 7 |
Parent [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in (loss) income, net of tax | (72) | 81 | 7 |
Net income (loss) from continuing operations | (72) | 81 | 7 |
Net (loss) income | (72) | 81 | 7 |
Issuer [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Selling, general and administrative expenses | (46) | (39) | (46) |
Operating profit | (46) | (39) | (46) |
Loss on extinguishment of debt | (15) | ||
Other income and expense, net | (3) | (3) | (1) |
Interest expense | (51) | (55) | (72) |
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | (100) | (97) | (134) |
Income tax provision | (3) | (8) | 2 |
Equity in (loss) income, net of tax | 31 | 186 | 139 |
Net income (loss) from continuing operations | (72) | 81 | 7 |
Net (loss) income | (72) | 81 | 7 |
Guarantor [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 603 | 684 | 628 |
Cost of sales | (491) | (539) | (506) |
Gross profit | 112 | 145 | 122 |
Selling, general and administrative expenses | (50) | (68) | (63) |
Operating profit | 62 | 77 | 59 |
Other income and expense, net | (2) | (1) | |
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | 60 | 76 | 59 |
Income tax provision | (2) | ||
Equity in (loss) income, net of tax | (27) | 84 | 61 |
Net income (loss) from continuing operations | 31 | 160 | 120 |
Income (loss) from discontinued operations, net of tax | 26 | 19 | |
Net (loss) income | 31 | 186 | 139 |
Non-Guarantor [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 442 | 444 | 426 |
Cost of sales | (339) | (345) | (325) |
Gross profit | 103 | 99 | 101 |
Selling, general and administrative expenses | (36) | (36) | (32) |
Operating profit | 67 | 63 | 69 |
Other income and expense, net | (2) | (3) | (2) |
Interest expense | (4) | (1) | (1) |
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | 61 | 59 | 66 |
Income tax provision | (15) | (16) | |
Equity in (loss) income, net of tax | (2) | ||
Net income (loss) from continuing operations | 46 | 59 | 48 |
Income (loss) from discontinued operations, net of tax | (73) | 25 | 13 |
Net (loss) income | (27) | 84 | 61 |
Eliminations [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | (146) | (158) | (144) |
Cost of sales | 146 | 158 | 144 |
Equity in (loss) income, net of tax | 68 | (351) | (207) |
Net income (loss) from continuing operations | 68 | (351) | (207) |
Net (loss) income | $ 68 | $ (351) | $ (207) |
Financial Information for Gu102
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Condensed Statement Of Income Captions [Line Items] | ||||
Net (loss) income | $ (72) | $ 81 | $ 7 | |
Other comprehensive income (loss), net of tax: | ||||
Pension liability adjustment | (1) | 1 | 1 | |
Reclassification earnings | (2) | (2) | ||
Change in fair value of derivatives | 1 | |||
Reclassification into earnings from derivatives | (1) | |||
Change in foreign currency translation adjustments | [1] | 7 | (28) | (19) |
Total other comprehensive income (loss) | 4 | (33) | (11) | |
Total comprehensive (loss) income | (68) | 48 | (4) | |
Parent [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Net (loss) income | (72) | 81 | 7 | |
Other comprehensive income (loss), net of tax: | ||||
Pension liability adjustment | (1) | 1 | 1 | |
Change in fair value of derivatives | 1 | |||
Reclassification into earnings from derivatives | (1) | |||
Change in foreign currency translation adjustments | 7 | (28) | (19) | |
Total other comprehensive income (loss) | 4 | (33) | (11) | |
Total comprehensive (loss) income | (68) | 48 | (4) | |
Issuer [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Net (loss) income | (72) | 81 | 7 | |
Other comprehensive income (loss), net of tax: | ||||
Pension liability adjustment | (1) | 1 | 1 | |
Change in fair value of derivatives | 1 | |||
Reclassification into earnings from derivatives | (1) | |||
Change in foreign currency translation adjustments | 7 | (28) | (19) | |
Total other comprehensive income (loss) | 4 | (33) | (11) | |
Total comprehensive (loss) income | (68) | 48 | (4) | |
Guarantor [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Net (loss) income | 31 | 186 | 139 | |
Other comprehensive income (loss), net of tax: | ||||
Total comprehensive (loss) income | 31 | 186 | 139 | |
Non-Guarantor [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Net (loss) income | (27) | 84 | 61 | |
Other comprehensive income (loss), net of tax: | ||||
Pension liability adjustment | (1) | 1 | 1 | |
Change in foreign currency translation adjustments | 7 | (28) | (19) | |
Total other comprehensive income (loss) | 6 | (25) | (18) | |
Total comprehensive (loss) income | (21) | 59 | 43 | |
Eliminations [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Net (loss) income | 68 | (351) | (207) | |
Other comprehensive income (loss), net of tax: | ||||
Pension liability adjustment | 2 | (2) | (2) | |
Change in fair value of derivatives | (1) | |||
Reclassification into earnings from derivatives | 1 | |||
Change in foreign currency translation adjustments | (14) | 56 | 38 | |
Total other comprehensive income (loss) | (10) | 58 | 29 | |
Total comprehensive (loss) income | 58 | (293) | (178) | |
Interest Rate Swap [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Change in fair value | [2] | (4) | (8) | 9 |
Reclassification earnings | 2 | 2 | (2) | |
Interest Rate Swap [Member] | Parent [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Change in fair value | (4) | (8) | 9 | |
Reclassification earnings | 2 | 2 | (2) | |
Interest Rate Swap [Member] | Issuer [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Change in fair value | (4) | (8) | 9 | |
Reclassification earnings | 2 | 2 | (2) | |
Interest Rate Swap [Member] | Non-Guarantor [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Reclassification earnings | 2 | |||
Interest Rate Swap [Member] | Eliminations [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Change in fair value | 4 | 8 | (9) | |
Reclassification earnings | $ (2) | $ (4) | $ 2 | |
[1] | Net of $2 million tax benefit in 2015, $6 million tax expense in 2014 and $3 million tax expense in 2013. | |||
[2] | Net of $1 million tax benefit in 2015, $1 million tax benefit in 2014 and $4 million tax expense in 2013. |
Financial Information for Gu103
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 28 | $ 26 | ||
Restricted cash | 6 | 4 | ||
Accounts receivable | 80 | 89 | ||
Inventories, net | 166 | 143 | ||
Other current assets | 20 | 80 | ||
Current assets of discontinued operations | 199 | |||
Total current assets | 300 | 541 | ||
Property, plant and equipment, net | 115 | 109 | ||
Investments and other assets | 173 | 169 | ||
Total assets | 588 | 819 | ||
Current liabilities: | ||||
Accounts payable | 86 | 99 | ||
Notes payable | 178 | 19 | ||
Other accrued expenses | 44 | 43 | ||
Accrued payroll and employee benefits | 8 | 16 | ||
Current liabilities of discontinued operations | 6 | 58 | ||
Total current liabilities | 322 | 235 | ||
Long-term debt | 562 | 792 | ||
Deferred employee benefits and noncurrent liabilities | 12 | 13 | ||
Total liabilities | 896 | 1,040 | ||
Total shareholder’s (deficit) equity | (308) | (221) | $ (202) | $ 153 |
Total liabilities and shareholder’s deficit | 588 | 819 | ||
Parent [Member] | ||||
Current assets: | ||||
Intercompany investments | (308) | (221) | ||
Total assets | (308) | (221) | ||
Current liabilities: | ||||
Total shareholder’s (deficit) equity | (308) | (221) | ||
Total liabilities and shareholder’s deficit | (308) | (221) | ||
Issuer [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | 10 | ||
Accounts receivable | (1) | |||
Inventories, net | (2) | |||
Other current assets | 44 | |||
Total current assets | (2) | 54 | ||
Property, plant and equipment, net | 1 | 1 | ||
Investments and other assets | 131 | 121 | ||
Intercompany investments | 454 | 386 | ||
Intercompany (payables) receivables | (154) | 48 | ||
Total assets | 430 | 610 | ||
Current liabilities: | ||||
Accounts payable | 6 | 10 | ||
Notes payable | 148 | |||
Other accrued expenses | 10 | 15 | ||
Accrued payroll and employee benefits | 2 | 9 | ||
Current liabilities of discontinued operations | 6 | |||
Total current liabilities | 172 | 34 | ||
Long-term debt | 562 | 792 | ||
Deferred employee benefits and noncurrent liabilities | 4 | 5 | ||
Total liabilities | 738 | 831 | ||
Total shareholder’s (deficit) equity | (308) | (221) | ||
Total liabilities and shareholder’s deficit | 430 | 610 | ||
Guarantor [Member] | ||||
Current assets: | ||||
Accounts receivable | 35 | 44 | ||
Inventories, net | 94 | 98 | ||
Other current assets | 1 | |||
Total current assets | 129 | 143 | ||
Property, plant and equipment, net | 63 | 57 | ||
Investments and other assets | 37 | 36 | ||
Intercompany investments | 719 | 747 | ||
Intercompany (payables) receivables | (422) | (508) | ||
Total assets | 526 | 475 | ||
Current liabilities: | ||||
Accounts payable | 55 | 70 | ||
Other accrued expenses | 16 | 15 | ||
Accrued payroll and employee benefits | 1 | 4 | ||
Total current liabilities | 72 | 89 | ||
Total liabilities | 72 | 89 | ||
Total shareholder’s (deficit) equity | 454 | 386 | ||
Total liabilities and shareholder’s deficit | 526 | 475 | ||
Non-Guarantor [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 27 | 16 | ||
Restricted cash | 6 | 4 | ||
Accounts receivable | 46 | 45 | ||
Inventories, net | 74 | 45 | ||
Other current assets | 20 | 35 | ||
Current assets of discontinued operations | 199 | |||
Total current assets | 173 | 344 | ||
Property, plant and equipment, net | 51 | 51 | ||
Investments and other assets | 5 | 12 | ||
Intercompany (payables) receivables | 576 | 460 | ||
Total assets | 805 | 867 | ||
Current liabilities: | ||||
Accounts payable | 25 | 19 | ||
Notes payable | 30 | 19 | ||
Other accrued expenses | 18 | 13 | ||
Accrued payroll and employee benefits | 5 | 3 | ||
Current liabilities of discontinued operations | 58 | |||
Total current liabilities | 78 | 112 | ||
Deferred employee benefits and noncurrent liabilities | 8 | 8 | ||
Total liabilities | 86 | 120 | ||
Total shareholder’s (deficit) equity | 719 | 747 | ||
Total liabilities and shareholder’s deficit | 805 | 867 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Intercompany investments | (865) | (912) | ||
Total assets | (865) | (912) | ||
Current liabilities: | ||||
Total shareholder’s (deficit) equity | (865) | (912) | ||
Total liabilities and shareholder’s deficit | $ (865) | $ (912) |
Financial Information for Gu104
Financial Information for Guarantors and Non-Guarantors - Guarantor Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net cash provided by (used in) operating activities | $ 21 | $ 20 | $ 99 |
Investing activities | |||
Proceeds from sales of assets | 91 | 149 | |
Change in restricted cash | (2) | (4) | 0 |
Investments in companies, net cash acquired | 0 | 0 | (1) |
Additions to property, plant and equipment | (28) | (26) | (31) |
Proceeds from the sale of an equity method investment | 0 | 4 | 0 |
Other investing activities | 0 | 3 | 0 |
Net cash provided by (used in) investing activities | 61 | 126 | (32) |
Financing activities | |||
Repayments of other debt | (17) | (10) | 0 |
Proceeds from other debt | 28 | 7 | 0 |
Repayment on secured notes | 0 | 0 | (195) |
Repayment on subordinated notes | 0 | 0 | (367) |
Distribution to our shareholders | (21) | (66) | (352) |
Repayment of term loans | (83) | (123) | (3) |
Payment of deferred financing costs | 0 | 0 | (15) |
Proceeds from term loans | 0 | 0 | 667 |
Proceeds from senior notes | 0 | 0 | 250 |
Proceeds from stock options exercise | 1 | 0 | 0 |
Other financing activities | (1) | 0 | 0 |
Net cash provided by (used in) financing activities | (93) | (192) | (15) |
Effect of exchange rates on cash | (6) | (10) | (2) |
(Decrease) increase in cash and cash equivalents | (17) | (56) | 50 |
Cash and cash equivalents at beginning of the period | 45 | 101 | 51 |
Cash and cash equivalents at end of the period | 28 | 45 | 101 |
Parent [Member] | |||
Operating activities | |||
Net cash provided by (used in) operating activities | 21 | 66 | 352 |
Financing activities | |||
Repayments of other debt | (21) | (66) | |
Distribution to our shareholders | (352) | ||
Net cash provided by (used in) financing activities | (21) | (66) | (352) |
Issuer [Member] | |||
Operating activities | |||
Net cash provided by (used in) operating activities | 5 | (25) | 61 |
Investing activities | |||
Proceeds from sales of assets | 91 | 149 | |
Additions to property, plant and equipment | (1) | (1) | |
Proceeds from the sale of an equity method investment | 4 | ||
Other investing activities | 3 | ||
Net cash provided by (used in) investing activities | 90 | 156 | (1) |
Financing activities | |||
Repayment on secured notes | (195) | ||
Repayment on subordinated notes | (367) | ||
Distribution to our shareholders | (21) | (66) | (352) |
Repayment of term loans | (83) | (123) | (3) |
Payment of deferred financing costs | (15) | ||
Proceeds from term loans | 667 | ||
Proceeds from senior notes | 250 | ||
Proceeds from stock options exercise | 1 | ||
Other financing activities | (1) | ||
Net cash provided by (used in) financing activities | (104) | (189) | (15) |
(Decrease) increase in cash and cash equivalents | (9) | (58) | 45 |
Cash and cash equivalents at beginning of the period | 10 | 68 | 23 |
Cash and cash equivalents at end of the period | 1 | 10 | 68 |
Guarantor [Member] | |||
Operating activities | |||
Net cash provided by (used in) operating activities | 14 | 13 | 17 |
Investing activities | |||
Additions to property, plant and equipment | (14) | (13) | (17) |
Net cash provided by (used in) investing activities | (14) | (13) | (17) |
Non-Guarantor [Member] | |||
Operating activities | |||
Net cash provided by (used in) operating activities | 2 | 32 | 21 |
Investing activities | |||
Change in restricted cash | (2) | (4) | |
Investments in companies, net cash acquired | (1) | ||
Additions to property, plant and equipment | (13) | (13) | (13) |
Net cash provided by (used in) investing activities | (15) | (17) | (14) |
Financing activities | |||
Repayments of other debt | (17) | (10) | |
Proceeds from other debt | 28 | 7 | |
Net cash provided by (used in) financing activities | 11 | (3) | |
Effect of exchange rates on cash | (6) | (10) | (2) |
(Decrease) increase in cash and cash equivalents | (8) | 2 | 5 |
Cash and cash equivalents at beginning of the period | 35 | 33 | 28 |
Cash and cash equivalents at end of the period | 27 | 35 | 33 |
Eliminations [Member] | |||
Operating activities | |||
Net cash provided by (used in) operating activities | (21) | (66) | (352) |
Financing activities | |||
Repayments of other debt | 21 | 66 | |
Distribution to our shareholders | 352 | ||
Net cash provided by (used in) financing activities | $ 21 | $ 66 | $ 352 |
Reconciliation of Previously105
Reconciliation of Previously Reported Amounts to Amounts Revised and Restated - Summary of Impacts of Changes on Consolidated Statement of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quantifying Misstatement In Current Year Financial Statements [Line Items] | |||
Net sales | $ 899 | $ 970 | $ 910 |
Cost of sales | (684) | (726) | (687) |
Gross profit | 215 | 244 | 223 |
Selling, general and administrative expenses | (132) | (143) | (141) |
Operating profit | 83 | 101 | 82 |
Other income and expense, net | (7) | (7) | (3) |
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | 21 | 38 | (9) |
Income tax provision | (20) | (8) | (14) |
Net income (loss) from continuing operations | 1 | 30 | (25) |
(Loss) income from discontinued operations, net of tax | (73) | 51 | 32 |
Net (loss) income | (72) | 81 | 7 |
Net income (loss) | (73) | 81 | 7 |
Total comprehensive (loss) income | $ (68) | 48 | (4) |
As Previously Reported [Member] | |||
Quantifying Misstatement In Current Year Financial Statements [Line Items] | |||
Net sales | 1,396 | 1,361 | |
Cost of sales | (1,056) | (1,043) | |
Gross profit | 340 | 318 | |
Selling, general and administrative expenses | (199) | (200) | |
Operating profit | 141 | 118 | |
Other income and expense, net | (13) | ||
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | 72 | 29 | |
Income tax provision | (19) | (22) | |
Net income (loss) from continuing operations | 53 | 5 | |
(Loss) income from discontinued operations, net of tax | 29 | 5 | |
Net (loss) income | 82 | 10 | |
Net income (loss) | 82 | 10 | |
Total comprehensive (loss) income | 49 | (1) | |
Reclassification of Discontinued Operations [Member] | |||
Quantifying Misstatement In Current Year Financial Statements [Line Items] | |||
Net sales | (421) | (446) | |
Cost of sales | 338 | 356 | |
Gross profit | (83) | (90) | |
Selling, general and administrative expenses | 51 | 55 | |
Operating profit | (32) | (35) | |
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | (32) | (37) | |
Income tax provision | 10 | 10 | |
Net income (loss) from continuing operations | (22) | (27) | |
(Loss) income from discontinued operations, net of tax | 22 | 27 | |
Restatement Adjustment [Member] | |||
Quantifying Misstatement In Current Year Financial Statements [Line Items] | |||
Net sales | (5) | (5) | |
Cost of sales | (8) | ||
Gross profit | (13) | (5) | |
Selling, general and administrative expenses | 5 | 4 | |
Operating profit | (8) | (1) | |
Other income and expense, net | 6 | ||
Income (loss) from continuing operations before income tax provision, equity in loss, net of tax and noncontrolling interest, net of tax | (2) | (1) | |
Income tax provision | 1 | (2) | |
Net income (loss) from continuing operations | (1) | (3) | |
Net (loss) income | (1) | (3) | |
Net income (loss) | (1) | (3) | |
Total comprehensive (loss) income | $ (1) | $ (3) |
Reconciliation of Previously106
Reconciliation of Previously Reported Amounts to Amounts Revised and Restated - Summary of Impacts of Changes on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Accounts receivable | $ 80 | $ 89 |
Inventories, net | 166 | 143 |
Property, plant and equipment, net | 115 | 109 |
Other intangible assets, net | 45 | 53 |
Deferred income taxes | 113 | 97 |
Accumulated deficit | ||
Accumulated deficit | $ (717) | (624) |
As Previously Reported [Member] | ||
Assets | ||
Accounts receivable | 145 | |
Inventories, net | 214 | |
Property, plant and equipment, net | 123 | |
Other intangible assets, net | 54 | |
Deferred income taxes | 97 | |
Accumulated deficit | ||
Accumulated deficit | (622) | |
Reclassification of Discontinued Operations [Member] | ||
Assets | ||
Accounts receivable | (56) | |
Inventories, net | (70) | |
Property, plant and equipment, net | (14) | |
Restatement Adjustment [Member] | ||
Assets | ||
Inventories, net | (1) | |
Other intangible assets, net | (1) | |
Accumulated deficit | ||
Accumulated deficit | $ (2) |
Reconciliation of Previously107
Reconciliation of Previously Reported Amounts to Amounts Revised and Restated - Summary of Impacts of Changes on Statement of Shareholder's Equity (Deficit) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quantifying Misstatement In Current Year Financial Statements [Line Items] | ||||
Total shareholder’s (deficit) equity | $ (308) | $ (221) | $ (202) | $ 153 |
Accumulated Deficit [Member] | ||||
Quantifying Misstatement In Current Year Financial Statements [Line Items] | ||||
Total shareholder’s (deficit) equity | $ (717) | $ (624) | $ (639) | (294) |
Accumulated Deficit [Member] | As Previously Reported [Member] | ||||
Quantifying Misstatement In Current Year Financial Statements [Line Items] | ||||
Total shareholder’s (deficit) equity | (296) | |||
Accumulated Deficit [Member] | Prior-Period Adjustment [Member] | ||||
Quantifying Misstatement In Current Year Financial Statements [Line Items] | ||||
Total shareholder’s (deficit) equity | $ 2 |