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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Visteon Corporation | NASDAQ:VC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.82 | 0.74% | 111.99 | 111.92 | 112.61 | 112.38 | 111.99 | 112.38 | 2,653 | 14:36:07 |
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
|
State of Delaware
|
38-3519512
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
One Village Center Drive, Van Buren Township, Michigan
|
48111
|
(Address of principal executive offices)
|
(Zip code)
|
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|
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ITEM 1.
|
CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three Months Ended
|
||||||
|
March 31
|
||||||
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Sales
|
$
|
1,856
|
|
|
$
|
1,717
|
|
Cost of sales
|
1,702
|
|
|
1,583
|
|
||
Gross margin
|
154
|
|
|
134
|
|
||
Selling, general and administrative expenses
|
86
|
|
|
91
|
|
||
Equity in net income of non-consolidated affiliates
|
44
|
|
|
42
|
|
||
Interest expense
|
13
|
|
|
12
|
|
||
Interest income
|
3
|
|
|
3
|
|
||
Restructuring and other expenses
|
36
|
|
|
63
|
|
||
Income from continuing operations before income taxes
|
66
|
|
|
13
|
|
||
(Benefit from) provision for income taxes
|
(18
|
)
|
|
27
|
|
||
Income (loss) from continuing operations
|
84
|
|
|
(14
|
)
|
||
Income from discontinued operations, net of tax
|
—
|
|
|
3
|
|
||
Net income (loss)
|
84
|
|
|
(11
|
)
|
||
Net income attributable to non-controlling interests
|
15
|
|
|
18
|
|
||
Net income (loss) attributable to Visteon Corporation
|
$
|
69
|
|
|
$
|
(29
|
)
|
|
|
|
|
||||
Basic earnings (loss) per share:
|
|
|
|
||||
Continuing operations
|
$
|
1.34
|
|
|
$
|
(0.62
|
)
|
Discontinued operations
|
—
|
|
|
0.06
|
|
||
Basic earnings (loss) per share attributable to Visteon Corporation
|
$
|
1.34
|
|
|
$
|
(0.56
|
)
|
Diluted earnings (loss) per share:
|
|
|
|
||||
Continuing operations
|
$
|
1.33
|
|
|
$
|
(0.62
|
)
|
Discontinued operations
|
—
|
|
|
0.06
|
|
||
Diluted earnings (loss) per share attributable to Visteon Corporation
|
$
|
1.33
|
|
|
$
|
(0.56
|
)
|
|
|
|
|
||||
Comprehensive income:
|
|
|
|
||||
Comprehensive income
|
$
|
40
|
|
|
$
|
36
|
|
Comprehensive income attributable to Visteon Corporation
|
$
|
41
|
|
|
$
|
11
|
|
|
March 31
|
|
December 31
|
||||
|
2013
|
|
2012
|
||||
|
|
||||||
ASSETS
|
|||||||
Cash and equivalents
|
$
|
980
|
|
|
$
|
825
|
|
Restricted cash
|
15
|
|
|
20
|
|
||
Accounts receivable, net
|
1,181
|
|
|
1,162
|
|
||
Inventories
|
427
|
|
|
385
|
|
||
Other current assets
|
267
|
|
|
271
|
|
||
Total current assets
|
2,870
|
|
|
2,663
|
|
||
|
|
|
|
||||
Property and equipment, net
|
1,297
|
|
|
1,326
|
|
||
Equity in net assets of non-consolidated affiliates
|
781
|
|
|
756
|
|
||
Intangible assets, net
|
314
|
|
|
332
|
|
||
Other non-current assets
|
105
|
|
|
79
|
|
||
Total assets
|
$
|
5,367
|
|
|
$
|
5,156
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|||||||
Short-term debt, including current portion of long-term debt
|
$
|
99
|
|
|
$
|
96
|
|
Accounts payable
|
1,192
|
|
|
1,027
|
|
||
Accrued employee liabilities
|
162
|
|
|
175
|
|
||
Other current liabilities
|
290
|
|
|
254
|
|
||
Total current liabilities
|
1,743
|
|
|
1,552
|
|
||
|
|
|
|
||||
Long-term debt
|
678
|
|
|
473
|
|
||
Employee benefits
|
555
|
|
|
571
|
|
||
Deferred tax liabilities
|
179
|
|
|
181
|
|
||
Other non-current liabilities
|
173
|
|
|
238
|
|
||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding at March 31, 2013 and December 31, 2012)
|
—
|
|
|
—
|
|
||
Common stock (par value $0.01, 250 million shares authorized, 54 million and 54 million shares issued, 50 million and 52 million shares outstanding at March 31, 2013 and December 31, 2012, respectively)
|
1
|
|
|
1
|
|
||
Stock warrants
|
10
|
|
|
10
|
|
||
Additional paid-in capital
|
1,250
|
|
|
1,269
|
|
||
Retained earnings
|
335
|
|
|
266
|
|
||
Accumulated other comprehensive income loss
|
(118
|
)
|
|
(90
|
)
|
||
Treasury stock
|
(172
|
)
|
|
(71
|
)
|
||
Total Visteon Corporation stockholders’ equity
|
1,306
|
|
|
1,385
|
|
||
Non-controlling interests
|
733
|
|
|
756
|
|
||
Total equity
|
2,039
|
|
|
2,141
|
|
||
Total liabilities and equity
|
$
|
5,367
|
|
|
$
|
5,156
|
|
|
Three Months Ended
|
||||||
|
March 31
|
||||||
|
2013
|
|
2012
|
||||
Operating Activities
|
|
|
|
||||
Net income (loss)
|
$
|
84
|
|
|
$
|
(11
|
)
|
Adjustments to reconcile net income (loss) to net cash provided from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
67
|
|
|
65
|
|
||
Equity in net income of non-consolidated affiliates, net of dividends remitted
|
(41
|
)
|
|
(42
|
)
|
||
Stock-based compensation
|
6
|
|
|
7
|
|
||
Other non-cash items
|
—
|
|
|
18
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(42
|
)
|
|
(100
|
)
|
||
Inventories
|
(51
|
)
|
|
(21
|
)
|
||
Accounts payable
|
190
|
|
|
126
|
|
||
Accrued income taxes
|
(57
|
)
|
|
6
|
|
||
Other assets and other liabilities
|
(34
|
)
|
|
(29
|
)
|
||
Net cash provided from operating activities
|
122
|
|
|
19
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(63
|
)
|
|
(53
|
)
|
||
Proceeds from business divestitures and asset sales
|
17
|
|
|
—
|
|
||
Net cash used by investing activities
|
(46
|
)
|
|
(53
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Proceeds from issuance of debt, net of issuance costs
|
204
|
|
|
2
|
|
||
Short-term debt, net
|
12
|
|
|
—
|
|
||
Principal payments on debt
|
(1
|
)
|
|
(4
|
)
|
||
Payments to repurchase common stock
|
(125
|
)
|
|
—
|
|
||
Net cash provided from (used by) financing activities
|
90
|
|
|
(2
|
)
|
||
Effect of exchange rate changes on cash and equivalents
|
(11
|
)
|
|
9
|
|
||
Net increase (decrease) in cash and equivalents
|
155
|
|
|
(27
|
)
|
||
Cash and equivalents at beginning of period
|
825
|
|
|
723
|
|
||
Cash and equivalents at end of period
|
$
|
980
|
|
|
$
|
696
|
|
|
Three Months Ended
|
||
|
March 31, 2012
|
||
|
(Dollars in Millions)
|
||
Sales
|
$
|
139
|
|
Cost of sales
|
123
|
|
|
Gross margin
|
16
|
|
|
Selling, general and administrative expenses
|
3
|
|
|
Asset impairments
|
2
|
|
|
Other expense
|
2
|
|
|
Income from discontinued operations before income taxes
|
9
|
|
|
Provision for income taxes
|
6
|
|
|
Income from discontinued operations, net of tax
|
$
|
3
|
|
|
Three Months Ended March 31
|
||||||||||||||||||||||
|
Net Sales
|
|
Gross Margin
|
|
Net Income
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Yanfeng
|
$
|
1,816
|
|
|
$
|
793
|
|
|
$
|
273
|
|
|
$
|
122
|
|
|
$
|
69
|
|
|
$
|
72
|
|
All other
|
386
|
|
|
413
|
|
|
26
|
|
|
42
|
|
|
22
|
|
|
17
|
|
||||||
|
$
|
2,202
|
|
|
$
|
1,206
|
|
|
$
|
299
|
|
|
$
|
164
|
|
|
$
|
91
|
|
|
$
|
89
|
|
|
Three Months Ended
|
||||||
|
March 31
|
||||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Restructuring expenses
|
$
|
20
|
|
|
$
|
41
|
|
Loss on asset contribution
|
—
|
|
|
14
|
|
||
Transformation costs
|
16
|
|
|
8
|
|
||
|
$
|
36
|
|
|
$
|
63
|
|
|
Interiors
|
|
Climate
|
|
Electronics
|
|
Corporate
|
|
Total
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
December 31, 2012
|
34
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
39
|
|
|||||
Expenses
|
1
|
|
|
14
|
|
|
—
|
|
|
6
|
|
|
21
|
|
|||||
Reversals
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Currency
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Utilization
|
(1
|
)
|
|
(11
|
)
|
|
—
|
|
|
(3
|
)
|
|
(15
|
)
|
|||||
March 31, 2013
|
$
|
32
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
42
|
|
•
|
Climate consolidation - During the first quarter of 2013, Halla Climate Control Corporation ("Halla") purchased certain subsidiaries and intellectual property of Visteon's global climate business for approximately
$410 million
. With effect from February 1, 2013,
this combined climate business has been operating under the
name of Halla Visteon Climate Control ("HVCC"). HVCC is majority-owned by Visteon and headquartered in South Korea.
|
•
|
Interiors strategy - The Company continued to explore alternatives for its Interiors business including, but not limited to, divestiture, partnership or alliance. While the Company views Interiors as a non-core business, it continues to make commitments to this business and intends to divest in the future only under acceptable terms and conditions.
|
•
|
Electronics optimization - The Company continued to explore opportunities to optimize the size and scale of its Electronics business with a specific focus on cockpit electronic products.
|
•
|
Cost reduction program - In November 2012 the Company announced a
$100 million
restructuring program designed to reduce fixed costs and to improve operational efficiency by addressing certain under-performing operations. During the
|
|
March 31
|
|
December 31
|
||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Raw materials
|
$
|
166
|
|
|
$
|
153
|
|
Work-in-process
|
198
|
|
|
174
|
|
||
Finished products
|
86
|
|
|
78
|
|
||
|
450
|
|
|
405
|
|
||
Valuation reserves
|
(23
|
)
|
|
(20
|
)
|
||
|
$
|
427
|
|
|
$
|
385
|
|
|
March 31
|
|
December 31
|
||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Land
|
$
|
156
|
|
|
$
|
161
|
|
Buildings and improvements
|
265
|
|
|
269
|
|
||
Machinery, equipment and other
|
1,153
|
|
|
1,137
|
|
||
Construction in progress
|
99
|
|
|
100
|
|
||
|
1,673
|
|
|
1,667
|
|
||
Accumulated depreciation
|
(450
|
)
|
|
(421
|
)
|
||
|
1,223
|
|
|
1,246
|
|
||
Product tooling, net of amortization
|
74
|
|
|
80
|
|
||
Property and equipment, net
|
$
|
1,297
|
|
|
$
|
1,326
|
|
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Definite-lived intangible assets:
|
|
|
|||||||||||||||||||||
Developed technology
|
$
|
203
|
|
|
$
|
65
|
|
|
$
|
138
|
|
|
$
|
209
|
|
|
$
|
60
|
|
|
$
|
149
|
|
Customer related
|
121
|
|
|
32
|
|
|
89
|
|
|
124
|
|
|
30
|
|
|
94
|
|
||||||
Other
|
22
|
|
|
6
|
|
|
16
|
|
|
22
|
|
|
5
|
|
|
17
|
|
||||||
|
$
|
346
|
|
|
$
|
103
|
|
|
$
|
243
|
|
|
$
|
355
|
|
|
$
|
95
|
|
|
$
|
260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill and indefinite-lived intangible assets:
|
|
|
|||||||||||||||||||||
Goodwill
|
|
|
|
|
$
|
46
|
|
|
|
|
|
|
$
|
46
|
|
||||||||
Trade names
|
|
|
|
|
25
|
|
|
|
|
|
|
26
|
|
||||||||||
|
|
|
|
|
71
|
|
|
|
|
|
|
72
|
|
||||||||||
Total
|
|
|
|
|
$
|
314
|
|
|
|
|
|
|
$
|
332
|
|
|
March 31
|
|
December 31
|
||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Short-term debt
|
|
|
|
||||
Current portion of long-term debt
|
$
|
2
|
|
|
$
|
3
|
|
Other – short-term
|
97
|
|
|
93
|
|
||
Total short-term debt
|
$
|
99
|
|
|
$
|
96
|
|
|
|
|
|
||||
Long-term debt
|
|
|
|
||||
6.75% senior notes due April 15, 2019
|
446
|
|
|
445
|
|
||
HVCC USD term loan due May 30, 2016
|
100
|
|
|
—
|
|
||
HVCC KRW term loan due May 30, 2016
|
90
|
|
|
—
|
|
||
Other
|
42
|
|
|
28
|
|
||
Total long-term debt
|
$
|
678
|
|
|
$
|
473
|
|
|
Retirement Plans
|
||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Costs recognized in income
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
4
|
|
Interest cost
|
12
|
|
|
17
|
|
|
7
|
|
|
7
|
|
||||
Expected return on plan assets
|
(16
|
)
|
|
(19
|
)
|
|
(5
|
)
|
|
(4
|
)
|
||||
Amortization of actuarial losses
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Net pension (benefit) expense
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
9
|
|
|
$
|
7
|
|
|
Three Months Ended
|
||
|
March 31, 2013
|
||
|
(Dollars in Millions)
|
||
Beginning balance
|
$
|
117
|
|
Tax positions related to current period:
|
|
||
Additions
|
3
|
|
|
Tax positions related to prior periods:
|
|
||
Reductions
|
(38
|
)
|
|
Settlements with tax authorities
|
(2
|
)
|
|
Lapses in statute of limitations
|
(1
|
)
|
|
Effect of exchange rate changes
|
—
|
|
|
Ending balance
|
$
|
79
|
|
|
Three Months Ended March 31
|
||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||
|
Visteon
|
|
NCI
|
|
Total
|
|
Visteon
|
|
NCI
|
|
Total
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Stockholders' equity beginning balance
|
$
|
1,385
|
|
|
$
|
756
|
|
|
$
|
2,141
|
|
|
$
|
1,307
|
|
|
$
|
690
|
|
|
$
|
1,997
|
|
Income (loss) from continuing operations
|
69
|
|
|
15
|
|
|
84
|
|
|
(32
|
)
|
|
18
|
|
|
(14
|
)
|
||||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||
Net income (loss)
|
69
|
|
|
15
|
|
|
84
|
|
|
(29
|
)
|
|
18
|
|
|
(11
|
)
|
||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(31
|
)
|
|
(10
|
)
|
|
(41
|
)
|
|
28
|
|
|
6
|
|
|
34
|
|
||||||
Benefit plans
|
9
|
|
|
(2
|
)
|
|
7
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Unrealized hedging (loss) gains
|
(6
|
)
|
|
(4
|
)
|
|
(10
|
)
|
|
10
|
|
|
1
|
|
|
11
|
|
||||||
Total other comprehensive income (loss)
|
(28
|
)
|
|
(16
|
)
|
|
(44
|
)
|
|
40
|
|
|
7
|
|
|
47
|
|
||||||
Stock-based compensation, net
|
5
|
|
|
—
|
|
|
5
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Common stock contribution to U.S. pension plans
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
||||||
Share repurchase
|
(125
|
)
|
|
—
|
|
|
(125
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(22
|
)
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|
(22
|
)
|
||||||
Stockholders' equity ending balance
|
$
|
1,306
|
|
|
$
|
733
|
|
|
$
|
2,039
|
|
|
$
|
1,398
|
|
|
$
|
693
|
|
|
$
|
2,091
|
|
|
March 31
|
|
December 31
|
||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Halla Visteon Climate Control Corporation
|
$
|
699
|
|
|
$
|
723
|
|
Visteon Interiors Korea Ltd
|
19
|
|
|
20
|
|
||
Other
|
15
|
|
|
13
|
|
||
Total non-controlling interests
|
$
|
733
|
|
|
$
|
756
|
|
|
March 31
|
|
March 31
|
||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Changes in accumulated other comprehensive income (loss):
|
|
|
|
||||
Beginning balance
|
$
|
(90
|
)
|
|
$
|
(25
|
)
|
Other comprehensive (loss) income before reclassification, net of tax
|
(31
|
)
|
|
40
|
|
||
Amounts reclassified from accumulated other comprehensive income
|
3
|
|
|
—
|
|
||
Ending balance
|
$
|
(118
|
)
|
|
$
|
15
|
|
|
|
|
|
||||
Changes in accumulated other comprehensive income (loss) by component:
|
|
|
|
||||
Foreign currency translation adjustments
|
|
|
|
||||
Beginning balance
|
$
|
11
|
|
|
$
|
(41
|
)
|
Other comprehensive (loss) income before reclassification, net of tax (a)
|
(30
|
)
|
|
28
|
|
||
Amounts reclassified from accumulated other comprehensive income loss (b)
|
(1
|
)
|
|
—
|
|
||
Ending balance
|
(20
|
)
|
|
(13)
|
|
||
Benefit plans
|
|
|
|
||||
Beginning balance
|
(108
|
)
|
|
25
|
|
||
Other comprehensive income before reclassification, net of tax (c)
|
10
|
|
|
2
|
|
||
Amounts reclassified from accumulated other comprehensive loss (d)
|
(1
|
)
|
|
—
|
|
||
Ending balance
|
(99
|
)
|
|
27
|
|
||
Unrealized hedging gains (loss)
|
|
|
|
||||
Beginning balance
|
7
|
|
|
(9
|
)
|
||
Other comprehensive (loss) income before reclassification, net of tax (e)
|
(11
|
)
|
|
10
|
|
||
Amounts reclassified from accumulated other comprehensive income (f)
|
5
|
|
|
—
|
|
||
Ending balance
|
$
|
1
|
|
|
$
|
1
|
|
|
Three Months Ended
|
||||||
|
March 31
|
||||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions, Except Per Share Amounts)
|
||||||
Numerator:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
69
|
|
|
$
|
(32
|
)
|
Income from discontinued operations
|
—
|
|
|
3
|
|
||
Net income (loss) attributable to Visteon
|
$
|
69
|
|
|
$
|
(29
|
)
|
Denominator:
|
|
|
|
||||
Average common stock outstanding
|
51.6
|
|
|
51.9
|
|
||
Dilutive effect of warrants and Performance Stock Units
|
0.3
|
|
|
—
|
|
||
Diluted shares
|
51.9
|
|
|
51.9
|
|
||
|
|
|
|
||||
Basic and Diluted Earnings (Loss) Per Share Data:
|
|
|
|
||||
Basic earnings (loss) per share
|
|
|
|
||||
Continuing operations
|
$
|
1.34
|
|
|
$
|
(0.62
|
)
|
Discontinued operations
|
—
|
|
|
0.06
|
|
||
Basic earnings (loss) per share attributable to Visteon
|
$
|
1.34
|
|
|
$
|
(0.56
|
)
|
Diluted earnings (loss) per share
|
|
|
|
||||
Continuing operations
|
$
|
1.33
|
|
|
$
|
(0.62
|
)
|
Discontinued operations
|
—
|
|
|
0.06
|
|
||
Diluted earnings (loss) per share attributable to Visteon
|
$
|
1.33
|
|
|
$
|
(0.56
|
)
|
|
Three Months Ended
|
||||||||||||||
|
March 31
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
(In Millions, Except Per Share Amounts)
|
||||||||||||||
Stock Warrants:
|
|
|
|
|
|
||||||||||
Number of stock warrants
|
1.5
|
|
|
|
|
2.0
|
|
||||||||
Exercise price
|
$
|
58.80
|
|
|
$
|
9.66
|
|
-
|
$
|
58.80
|
|
||||
Stock Options:
|
|
|
|
|
|
||||||||||
Number of stock options
|
0.3
|
|
|
0.4
|
|
||||||||||
Exercise price
|
$
|
44.55
|
|
-
|
$
|
74.08
|
|
|
$
|
44.55
|
|
-
|
$
|
74.08
|
|
•
|
Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.
|
•
|
Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability.
|
•
|
Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.
|
Assets
|
|
Liabilities
|
||||||||||||||||
|
|
March 31
|
|
December 31
|
|
|
|
March 31
|
|
December 31
|
||||||||
Classification
|
|
2013
|
|
2012
|
|
Classification
|
|
2013
|
|
2012
|
||||||||
|
|
(Dollars in Millions)
|
|
|
|
(Dollars in Millions)
|
||||||||||||
Designated:
|
|
|
|
|
|
Designated:
|
|
|
|
|
||||||||
Other current assets
|
|
$
|
5
|
|
|
$
|
16
|
|
|
Other current assets
|
|
$
|
3
|
|
|
$
|
1
|
|
Other current liabilities
|
|
—
|
|
|
1
|
|
|
Other current liabilities
|
|
1
|
|
|
1
|
|
||||
Non-designated:
|
|
|
|
|
|
Non-designated:
|
|
|
|
|
||||||||
Other current assets
|
|
3
|
|
|
6
|
|
|
Other current assets
|
|
1
|
|
|
—
|
|
||||
|
|
$
|
8
|
|
|
$
|
23
|
|
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
|
Gross Amount Recognized
|
|
Gross Amounts offset in the Statement of Financial Position
|
|
Net Amounts Presented in the Statement of Financial Position
|
||||||||||||||||||
|
|
March 31
|
|
December 31
|
|
March 31
|
|
December 31
|
|
March 31
|
|
December 31
|
||||||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
|
|
(Dollars in Millions)
|
||||||||||||||||||||||
Foreign Currency Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Designated
|
|
$
|
5
|
|
|
$
|
17
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
16
|
|
Non-designated
|
|
3
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
6
|
|
||||||
|
|
$
|
8
|
|
|
$
|
23
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
22
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Designated
|
|
$
|
1
|
|
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Amount of Gain (Loss)
|
||||||||||||||||||||||
|
Recorded in AOCI, net of tax
|
|
Reclassified from AOCI into Income
|
|
Recorded in Income
|
||||||||||||||||||
|
Three Months Ended March 31
|
||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Foreign currency risk – Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
$
|
(6
|
)
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-designated cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||||
|
$
|
(6
|
)
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
Three Months Ended March 31
|
||||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Beginning balance
|
$
|
57
|
|
|
$
|
65
|
|
Accruals for products shipped
|
4
|
|
|
5
|
|
||
Currency
|
(2
|
)
|
|
—
|
|
||
Changes in estimates
|
(2
|
)
|
|
—
|
|
||
Settlements
|
(4
|
)
|
|
(4
|
)
|
||
Ending balance
|
$
|
53
|
|
|
$
|
66
|
|
•
|
Climate — The Company’s Climate product line includes climate air handling modules, powertrain cooling modules, heat exchangers, compressors, fluid transport and engine induction systems.
|
•
|
Electronics — The Company’s Electronics product line includes audio systems, infotainment systems, driver information systems, powertrain and feature control modules, climate controls, and electronic control modules.
|
•
|
Interiors — The Company’s Interiors product line includes instrument panels, cockpit modules, door trim and floor consoles.
|
|
Three Months Ended March 31
|
||||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Climate
|
$
|
1,228
|
|
|
$
|
1,023
|
|
Electronics
|
365
|
|
|
329
|
|
||
Interiors
|
317
|
|
|
393
|
|
||
Eliminations
|
(54
|
)
|
|
(28
|
)
|
||
Total consolidated
|
$
|
1,856
|
|
|
$
|
1,717
|
|
|
Three Months Ended March 31
|
||||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Climate
|
$
|
113
|
|
|
$
|
84
|
|
Electronics
|
30
|
|
|
28
|
|
||
Interiors
|
33
|
|
|
41
|
|
||
Total Segment Adjusted EBITDA
|
$
|
176
|
|
|
$
|
153
|
|
Reconciling Item:
|
|
|
|
||||
Corporate
|
(6
|
)
|
|
(10
|
)
|
||
Total Adjusted EBITDA
|
$
|
170
|
|
|
$
|
143
|
|
|
Three Months Ended March 31
|
||||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Total Adjusted EBITDA
|
$
|
170
|
|
|
$
|
143
|
|
Interest expense, net
|
10
|
|
|
9
|
|
||
(Benefit from) provision for income taxes
|
(18
|
)
|
|
27
|
|
||
Depreciation and amortization
|
67
|
|
|
64
|
|
||
Restructuring and other expense
|
36
|
|
|
63
|
|
||
Stock-based compensation expense
|
6
|
|
|
7
|
|
||
Other
|
—
|
|
|
2
|
|
||
Net income (loss) attributable to Visteon
|
$
|
69
|
|
|
$
|
(29
|
)
|
|
Inventories, Net
|
|
Property and Equipment, Net
|
||||||||||||
|
March 31
|
|
December 31
|
|
March 31
|
|
December 31
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Climate
|
$
|
317
|
|
|
$
|
276
|
|
|
$
|
989
|
|
|
$
|
974
|
|
Electronics
|
66
|
|
|
67
|
|
|
96
|
|
|
119
|
|
||||
Interiors
|
44
|
|
|
42
|
|
|
176
|
|
|
178
|
|
||||
Total Segment Operating Assets
|
427
|
|
|
385
|
|
|
1,261
|
|
|
1,271
|
|
||||
Reconciling Item:
|
|
|
|
|
|
|
|
||||||||
Corporate
|
—
|
|
|
—
|
|
|
36
|
|
|
55
|
|
||||
Total consolidated
|
$
|
427
|
|
|
$
|
385
|
|
|
$
|
1,297
|
|
|
$
|
1,326
|
|
•
|
The Parent Company, the issuer of the guaranteed obligations;
|
•
|
Guarantor subsidiaries, on a combined basis, as specified in the Indenture related to the Senior Notes;
|
•
|
Non-guarantor subsidiaries, on a combined basis;
|
•
|
Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in subsidiaries, and (c) record consolidating entries.
|
|
Three Months Ended March 31, 2013
|
||||||||||||||||||
|
Parent Company
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
Sales
|
$
|
48
|
|
|
$
|
320
|
|
|
$
|
1,686
|
|
|
$
|
(198
|
)
|
|
$
|
1,856
|
|
Cost of sales
|
96
|
|
|
263
|
|
|
1,541
|
|
|
(198
|
)
|
|
1,702
|
|
|||||
Gross margin
|
(48
|
)
|
|
57
|
|
|
145
|
|
|
—
|
|
|
154
|
|
|||||
Selling, general and administrative expenses
|
13
|
|
|
7
|
|
|
66
|
|
|
—
|
|
|
86
|
|
|||||
Equity in net income of non-consolidated affiliates
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|||||
Interest expense (income), net
|
10
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
10
|
|
|||||
Restructuring and other expenses
|
20
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
36
|
|
|||||
(Loss) income from continuing operations before income taxes and earnings of subsidiaries
|
(91
|
)
|
|
51
|
|
|
106
|
|
|
—
|
|
|
66
|
|
|||||
Provision for (benefit from) income taxes
|
1
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(18
|
)
|
|||||
(Loss) income from continuing operations before earnings of subsidiaries
|
(92
|
)
|
|
51
|
|
|
125
|
|
|
—
|
|
|
84
|
|
|||||
Equity in earnings of consolidated subsidiaries
|
161
|
|
|
108
|
|
|
—
|
|
|
(269
|
)
|
|
—
|
|
|||||
Net income
|
69
|
|
|
159
|
|
|
125
|
|
|
(269
|
)
|
|
84
|
|
|||||
Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||
Net income attributable to Visteon Corporation
|
$
|
69
|
|
|
$
|
159
|
|
|
$
|
110
|
|
|
$
|
(269
|
)
|
|
$
|
69
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
$
|
41
|
|
|
$
|
136
|
|
|
$
|
87
|
|
|
$
|
(224
|
)
|
|
$
|
40
|
|
Comprehensive income attributable to Visteon Corporation
|
$
|
41
|
|
|
$
|
136
|
|
|
$
|
88
|
|
|
$
|
(224
|
)
|
|
$
|
41
|
|
|
Three Months Ended March 31, 2012
|
||||||||||||||||||
|
Parent Company
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
Sales
|
$
|
41
|
|
|
$
|
368
|
|
|
$
|
1,616
|
|
|
$
|
(308
|
)
|
|
$
|
1,717
|
|
Cost of sales
|
100
|
|
|
300
|
|
|
1,491
|
|
|
(308
|
)
|
|
1,583
|
|
|||||
Gross margin
|
(59
|
)
|
|
68
|
|
|
125
|
|
|
—
|
|
|
134
|
|
|||||
Selling, general and administrative expenses
|
15
|
|
|
18
|
|
|
58
|
|
|
—
|
|
|
91
|
|
|||||
Equity in net income of non-consolidated affiliates
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
|||||
Interest expense (income), net
|
10
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Restructuring and other expenses
|
22
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
63
|
|
|||||
(Loss) income from continuing operations before income taxes and earnings of subsidiaries
|
(106
|
)
|
|
51
|
|
|
68
|
|
|
—
|
|
|
13
|
|
|||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|||||
(Loss) income from continuing operations before earnings of subsidiaries
|
(106
|
)
|
|
51
|
|
|
41
|
|
|
—
|
|
|
(14
|
)
|
|||||
Equity in earnings of consolidated subsidiaries
|
86
|
|
|
(3
|
)
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
|||||
(Loss) income from continuing operations
|
(20
|
)
|
|
48
|
|
|
41
|
|
|
(83
|
)
|
|
(14
|
)
|
|||||
(Loss) income from discontinued operations, net of tax
|
(9
|
)
|
|
23
|
|
|
(11
|
)
|
|
—
|
|
|
3
|
|
|||||
Net (loss) income
|
(29
|
)
|
|
71
|
|
|
30
|
|
|
(83
|
)
|
|
(11
|
)
|
|||||
Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|||||
Net (loss) income attributable to Visteon Corporation
|
$
|
(29
|
)
|
|
$
|
71
|
|
|
$
|
12
|
|
|
$
|
(83
|
)
|
|
$
|
(29
|
)
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
$
|
11
|
|
|
$
|
116
|
|
|
$
|
77
|
|
|
$
|
(168
|
)
|
|
$
|
36
|
|
Comprehensive income attributable to Visteon Corporation
|
$
|
11
|
|
|
$
|
116
|
|
|
$
|
52
|
|
|
$
|
(168
|
)
|
|
$
|
11
|
|
|
March 31, 2013
|
||||||||||||||||||
|
Parent Company
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
302
|
|
|
$
|
37
|
|
|
$
|
641
|
|
|
$
|
—
|
|
|
$
|
980
|
|
Accounts receivable, net
|
335
|
|
|
733
|
|
|
1,265
|
|
|
(1,152
|
)
|
|
1,181
|
|
|||||
Inventories
|
8
|
|
|
18
|
|
|
401
|
|
|
—
|
|
|
427
|
|
|||||
Other current assets
|
29
|
|
|
32
|
|
|
221
|
|
|
—
|
|
|
282
|
|
|||||
Total current assets
|
674
|
|
|
820
|
|
|
2,528
|
|
|
(1,152
|
)
|
|
2,870
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Property and equipment, net
|
16
|
|
|
19
|
|
|
1,262
|
|
|
—
|
|
|
1,297
|
|
|||||
Investment in affiliates
|
1,961
|
|
|
1,435
|
|
|
—
|
|
|
(3,396
|
)
|
|
—
|
|
|||||
Equity in net assets of non-consolidated affiliates
|
—
|
|
|
—
|
|
|
781
|
|
|
—
|
|
|
781
|
|
|||||
Intangible assets, net
|
—
|
|
|
18
|
|
|
296
|
|
|
—
|
|
|
314
|
|
|||||
Other non-current assets
|
10
|
|
|
78
|
|
|
100
|
|
|
(83
|
)
|
|
105
|
|
|||||
Total assets
|
$
|
2,661
|
|
|
$
|
2,370
|
|
|
$
|
4,967
|
|
|
$
|
(4,631
|
)
|
|
$
|
5,367
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||
Short-term debt, including current portion of long-term debt
|
$
|
335
|
|
|
$
|
45
|
|
|
$
|
259
|
|
|
$
|
(540
|
)
|
|
$
|
99
|
|
Accounts payable
|
204
|
|
|
140
|
|
|
1,414
|
|
|
(566
|
)
|
|
1,192
|
|
|||||
Other current liabilities
|
71
|
|
|
21
|
|
|
360
|
|
|
—
|
|
|
452
|
|
|||||
Total current liabilities
|
610
|
|
|
206
|
|
|
2,033
|
|
|
(1,106
|
)
|
|
1,743
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
450
|
|
|
44
|
|
|
312
|
|
|
(128
|
)
|
|
678
|
|
|||||
Employee benefits
|
253
|
|
|
33
|
|
|
269
|
|
|
—
|
|
|
555
|
|
|||||
Other non-current liabilities
|
42
|
|
|
4
|
|
|
306
|
|
|
—
|
|
|
352
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Visteon Corporation stockholders’ equity
|
1,306
|
|
|
2,083
|
|
|
1,244
|
|
|
(3,327
|
)
|
|
1,306
|
|
|||||
Non-controlling interests
|
—
|
|
|
—
|
|
|
803
|
|
|
(70
|
)
|
|
733
|
|
|||||
Total equity
|
1,306
|
|
|
2,083
|
|
|
2,047
|
|
|
(3,397
|
)
|
|
2,039
|
|
|||||
Total liabilities and equity
|
$
|
2,661
|
|
|
$
|
2,370
|
|
|
$
|
4,967
|
|
|
$
|
(4,631
|
)
|
|
$
|
5,367
|
|
|
December 31, 2012
|
||||||||||||||||||
|
Parent Company
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
191
|
|
|
$
|
54
|
|
|
$
|
580
|
|
|
$
|
—
|
|
|
$
|
825
|
|
Accounts receivable, net
|
279
|
|
|
676
|
|
|
1,138
|
|
|
(931
|
)
|
|
1,162
|
|
|||||
Inventories
|
15
|
|
|
23
|
|
|
347
|
|
|
—
|
|
|
385
|
|
|||||
Other current assets
|
24
|
|
|
32
|
|
|
235
|
|
|
—
|
|
|
291
|
|
|||||
Total current assets
|
509
|
|
|
785
|
|
|
2,300
|
|
|
(931
|
)
|
|
2,663
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Property and equipment, net
|
20
|
|
|
62
|
|
|
1,244
|
|
|
—
|
|
|
1,326
|
|
|||||
Investment in affiliates
|
2,024
|
|
|
1,587
|
|
|
—
|
|
|
(3,611
|
)
|
|
—
|
|
|||||
Equity in net assets of non-consolidated affiliates
|
—
|
|
|
—
|
|
|
756
|
|
|
—
|
|
|
756
|
|
|||||
Intangible assets, net
|
86
|
|
|
45
|
|
|
201
|
|
|
—
|
|
|
332
|
|
|||||
Other non-current assets
|
14
|
|
|
—
|
|
|
70
|
|
|
(5
|
)
|
|
79
|
|
|||||
Total assets
|
$
|
2,653
|
|
|
$
|
2,479
|
|
|
$
|
4,571
|
|
|
$
|
(4,547
|
)
|
|
$
|
5,156
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||
Short-term debt, including current portion of long-term debt
|
$
|
266
|
|
|
$
|
24
|
|
|
$
|
225
|
|
|
$
|
(419
|
)
|
|
$
|
96
|
|
Accounts payable
|
172
|
|
|
159
|
|
|
1,204
|
|
|
(508
|
)
|
|
1,027
|
|
|||||
Other current liabilities
|
76
|
|
|
27
|
|
|
326
|
|
|
—
|
|
|
429
|
|
|||||
Total current liabilities
|
514
|
|
|
210
|
|
|
1,755
|
|
|
(927
|
)
|
|
1,552
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
450
|
|
|
—
|
|
|
29
|
|
|
(6
|
)
|
|
473
|
|
|||||
Employee benefits
|
258
|
|
|
34
|
|
|
279
|
|
|
—
|
|
|
571
|
|
|||||
Other non-current liabilities
|
46
|
|
|
7
|
|
|
366
|
|
|
—
|
|
|
419
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Visteon Corporation stockholders’ equity
|
1,385
|
|
|
2,228
|
|
|
1,386
|
|
|
(3,614
|
)
|
|
1,385
|
|
|||||
Non-controlling interests
|
—
|
|
|
—
|
|
|
756
|
|
|
—
|
|
|
756
|
|
|||||
Total equity
|
1,385
|
|
|
2,228
|
|
|
2,142
|
|
|
(3,614
|
)
|
|
2,141
|
|
|||||
Total liabilities and equity
|
$
|
2,653
|
|
|
$
|
2,479
|
|
|
$
|
4,571
|
|
|
$
|
(4,547
|
)
|
|
$
|
5,156
|
|
|
Three Months Ended March 31, 2013
|
||||||||||||||||||
|
Parent Company
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
Net cash (used by) provided from operating activities
|
$
|
(56
|
)
|
|
$
|
(4
|
)
|
|
$
|
182
|
|
|
$
|
—
|
|
|
$
|
122
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(1
|
)
|
|
(1
|
)
|
|
(61
|
)
|
|
—
|
|
|
(63
|
)
|
|||||
Dividends received from consolidated subsidiaries
|
293
|
|
|
281
|
|
|
—
|
|
|
(574
|
)
|
|
—
|
|
|||||
Proceeds from business divestitures and asset sales
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|||||
Net cash provided from (used by) investing activities
|
292
|
|
|
280
|
|
|
(44
|
)
|
|
(574
|
)
|
|
(46
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from issuance of debt, net of issuance costs
|
—
|
|
|
—
|
|
|
204
|
|
|
—
|
|
|
204
|
|
|||||
Short-term debt, net
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|||||
Principal payments on debt
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Payments to repurchase common stock
|
(125
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(125
|
)
|
|||||
Dividends paid to consolidated subsidiaries
|
—
|
|
|
(292
|
)
|
|
(282
|
)
|
|
574
|
|
|
—
|
|
|||||
Net cash used by financing activities
|
(125
|
)
|
|
(292
|
)
|
|
(67
|
)
|
|
574
|
|
|
90
|
|
|||||
Effect of exchange rate changes on cash and equivalents
|
—
|
|
|
(1
|
)
|
|
(10
|
)
|
|
—
|
|
|
(11
|
)
|
|||||
Net increase (decrease) in cash and equivalents
|
111
|
|
|
(17
|
)
|
|
61
|
|
|
—
|
|
|
155
|
|
|||||
Cash and equivalents at beginning of period
|
191
|
|
|
54
|
|
|
580
|
|
|
—
|
|
|
825
|
|
|||||
Cash and equivalents at end of period
|
$
|
302
|
|
|
$
|
37
|
|
|
$
|
641
|
|
|
$
|
—
|
|
|
$
|
980
|
|
|
Three Months Ended March 31, 2012
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
|||||||||||
|
(Dollars in Millions)
|
|||||||||||||||||||
Net cash (used by) provided from operating activities
|
$
|
(62
|
)
|
|
$
|
(24
|
)
|
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital expenditures
|
(1
|
)
|
|
(1
|
)
|
|
(51
|
)
|
|
—
|
|
|
(53
|
)
|
||||||
Dividends received from consolidated subsidiaries
|
15
|
|
|
23
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
||||||
Net cash provided from (used by) investing activities
|
14
|
|
|
22
|
|
|
(51
|
)
|
|
(38
|
)
|
|
(53
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|||||||||||
Proceeds from issuance of debt, net of issuance costs
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Principal payments on debt
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Dividends paid to consolidated subsidiaries
|
—
|
|
|
(15
|
)
|
|
(23
|
)
|
|
38
|
|
|
—
|
|
||||||
Net cash provided from (used by) financing activities
|
(1
|
)
|
|
(15
|
)
|
|
(24
|
)
|
|
38
|
|
|
(2
|
)
|
||||||
Effect of exchange rate changes on cash and equivalents
|
—
|
|
|
2
|
|
|
7
|
|
|
—
|
|
|
9
|
|
||||||
Net (decrease) increase in cash and equivalents
|
(49
|
)
|
|
(15
|
)
|
|
37
|
|
|
—
|
|
|
(27
|
)
|
||||||
Cash and equivalents at beginning of period
|
114
|
|
|
55
|
|
|
554
|
|
|
—
|
|
|
723
|
|
||||||
Cash and equivalents at end of period
|
$
|
65
|
|
|
$
|
40
|
|
|
$
|
591
|
|
|
$
|
—
|
|
|
$
|
696
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Climate consolidation - During the first quarter of 2013, Halla Climate Control Corporation ("Halla") purchased certain subsidiaries and intellectual property of Visteon's global climate business for approximately $410 million. As of March 31, 2013 Visteon had received $344 million in proceeds associated with the transaction. Remaining proceeds are associated with certain subsidiaries and joint ventures located in China and are expected to be received during the second quarter of 2013. With effect from February 1, 2013,
this combined climate business has been operating under the
name of Halla Visteon Climate Control ("HVCC"). HVCC is majority-owned by Visteon and headquartered in South Korea.
|
•
|
Interiors strategy - The Company continues to explore alternatives for its Interiors business including, but not limited to, divestiture, partnership or alliance. While the Company views Interiors as a non-core business, it continues to make commitments to this business and intends to divest in the future only under acceptable terms and conditions.
|
•
|
Electronics optimization - The Company continues to explore opportunities to optimize the size and scale of its Electronics business with a specific focus on cockpit electronic products.
|
•
|
Cost reduction program - The Company continues to implement a previously announced $100 million restructuring program designed to reduce fixed costs and to improve operational efficiency by addressing certain under-performing operations. During the first quarter of 2013, the Company recorded additional restructuring charges of approximately $20 million associated with this program for total inception to date expense under the program of $55 million. The Company anticipates recording additional restructuring charges related to this program in future periods as underlying plans are finalized.
|
|
Three Months Ended March 31
|
||||||||||
|
2013
|
|
2012
|
|
Change
|
||||||
|
(Dollars in Millions)
|
||||||||||
Sales
|
$
|
1,856
|
|
|
$
|
1,717
|
|
|
$
|
139
|
|
Cost of sales
|
1,702
|
|
|
1,583
|
|
|
119
|
|
|||
Gross margin
|
154
|
|
|
134
|
|
|
20
|
|
|||
Selling, general and administrative expenses
|
86
|
|
|
91
|
|
|
(5
|
)
|
|||
Interest expense, net
|
10
|
|
|
9
|
|
|
1
|
|
|||
Equity in net income of non-consolidated affiliates
|
44
|
|
|
42
|
|
|
2
|
|
|||
Restructuring and other expense
|
36
|
|
|
63
|
|
|
(27
|
)
|
|||
Income before income taxes
|
66
|
|
|
13
|
|
|
53
|
|
|||
(Benefit from) provision for income taxes
|
(18
|
)
|
|
27
|
|
|
(45
|
)
|
|||
Income (loss) from continuing operations
|
84
|
|
|
(14
|
)
|
|
98
|
|
|||
Income from discontinued operations
|
—
|
|
|
3
|
|
|
(3
|
)
|
|||
Net income (loss)
|
84
|
|
|
(11
|
)
|
|
95
|
|
|||
Net income attributable to non-controlling interests
|
15
|
|
|
18
|
|
|
(3
|
)
|
|||
Net income (loss) attributable to Visteon
|
$
|
69
|
|
|
$
|
(29
|
)
|
|
$
|
98
|
|
Adjusted EBITDA*
|
$
|
170
|
|
|
$
|
143
|
|
|
$
|
27
|
|
|
|
|
|
|
|
||||||
*
Adjusted EBITDA is a Non-GAAP financial measure, as further discussed
below.
|
|
Net Sales
|
|
Gross Margin
|
|
Net Income
|
||||||||||||||||||
|
Three Months Ended March 31
|
|
Three Months Ended March 31
|
|
Three Months Ended March 31
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Yanfeng
|
$
|
1,816
|
|
|
$
|
793
|
|
|
$
|
273
|
|
|
$
|
122
|
|
|
$
|
69
|
|
|
$
|
72
|
|
All other
|
386
|
|
|
413
|
|
|
26
|
|
|
42
|
|
|
22
|
|
|
17
|
|
||||||
|
$
|
2,202
|
|
|
$
|
1,206
|
|
|
$
|
299
|
|
|
$
|
164
|
|
|
$
|
91
|
|
|
$
|
89
|
|
|
Three Months Ended March 31
|
||||||
|
2013
|
|
2012
|
||||
|
(Dollars in Millions)
|
||||||
Restructuring expenses
|
$
|
20
|
|
|
$
|
41
|
|
Loss on asset contribution
|
—
|
|
|
14
|
|
||
Transformation costs
|
16
|
|
|
8
|
|
||
|
$
|
36
|
|
|
$
|
63
|
|
|
Interiors
|
|
Climate
|
|
Electronics
|
|
Corporate
|
|
Total
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
December 31, 2012
|
34
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
39
|
|
|||||
Expenses
|
1
|
|
|
14
|
|
|
—
|
|
|
6
|
|
|
21
|
|
|||||
Reversals
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Exchange
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Utilization
|
(1
|
)
|
|
(11
|
)
|
|
—
|
|
|
(3
|
)
|
|
(15
|
)
|
|||||
March 31, 2013
|
$
|
32
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
42
|
|
|
Three Months Ended
|
||
|
March 31, 2012
|
||
|
(Dollars in Millions)
|
|
|
Sales
|
$
|
139
|
|
Cost of sales
|
123
|
|
|
Gross margin
|
16
|
|
|
Selling, general and administrative expenses
|
3
|
|
|
Asset impairments
|
2
|
|
|
Other expense
|
2
|
|
|
Income from discontinued operations before income taxes
|
9
|
|
|
Provision for income taxes
|
6
|
|
|
Income from discontinued operations, net of tax
|
$
|
3
|
|
|
Three Months Ended March 31
|
||||||||||
|
2013
|
|
2012
|
|
Change
|
||||||
|
(Dollars in Millions)
|
||||||||||
Adjusted EBITDA
|
$
|
170
|
|
|
$
|
143
|
|
|
$
|
27
|
|
Depreciation and amortization
|
67
|
|
|
64
|
|
|
3
|
|
|||
Restructuring and other expense
|
36
|
|
|
63
|
|
|
(27
|
)
|
|||
Interest expense, net
|
10
|
|
|
9
|
|
|
1
|
|
|||
(Benefit) provision for income taxes
|
(18
|
)
|
|
27
|
|
|
(45
|
)
|
|||
Stock-based compensation expense
|
6
|
|
|
7
|
|
|
(1
|
)
|
|||
Other non-operating costs, net
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||
Net income (loss) attributable to Visteon
|
$
|
69
|
|
|
$
|
(29
|
)
|
|
$
|
98
|
|
|
Climate
|
|
Electronics
|
|
Interiors
|
|
Eliminations
|
|
Total
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
Three months ended March 31, 2012
|
$
|
1,023
|
|
|
$
|
329
|
|
|
$
|
393
|
|
|
$
|
(28
|
)
|
|
$
|
1,717
|
|
Volume and mix
|
199
|
|
|
38
|
|
|
(62
|
)
|
|
(26
|
)
|
|
149
|
|
|||||
Currency
|
17
|
|
|
(3
|
)
|
|
(7
|
)
|
|
—
|
|
|
7
|
|
|||||
Other
|
(11
|
)
|
|
1
|
|
|
(7
|
)
|
|
—
|
|
|
(17
|
)
|
|||||
Three months ended March 31, 2013
|
$
|
1,228
|
|
|
$
|
365
|
|
|
$
|
317
|
|
|
$
|
(54
|
)
|
|
$
|
1,856
|
|
|
Climate
|
|
Electronics
|
|
Interiors
|
|
Eliminations
|
|
Total
|
||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||
Three months ended March 31, 2012
|
$
|
934
|
|
|
$
|
300
|
|
|
$
|
377
|
|
|
$
|
(28
|
)
|
|
$
|
1,583
|
|
Material
|
129
|
|
|
32
|
|
|
(46
|
)
|
|
(26
|
)
|
|
89
|
|
|||||
Freight and duty
|
12
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
9
|
|
|||||
Labor and overhead
|
34
|
|
|
2
|
|
|
(15
|
)
|
|
—
|
|
|
21
|
|
|||||
Depreciation and amortization
|
5
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Other
|
2
|
|
|
(5
|
)
|
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Three months ended March 31, 2013
|
$
|
1,116
|
|
|
$
|
328
|
|
|
$
|
312
|
|
|
$
|
(54
|
)
|
|
$
|
1,702
|
|
|
Three Months Ended March 31
|
||||||||||
|
2013
|
|
2012
|
|
Change
|
||||||
|
(Dollars in Millions)
|
||||||||||
Climate
|
$
|
113
|
|
|
$
|
84
|
|
|
$
|
29
|
|
Electronics
|
30
|
|
|
28
|
|
|
2
|
|
|||
Interiors
|
33
|
|
|
41
|
|
|
(8
|
)
|
|||
Total Segment Adjusted EBITDA
|
$
|
176
|
|
|
$
|
153
|
|
|
$
|
23
|
|
Reconciling Item:
|
|
|
|
|
|
||||||
Corporate
|
(6
|
)
|
|
(10
|
)
|
|
4
|
|
|||
Total consolidated
|
$
|
170
|
|
|
$
|
143
|
|
|
$
|
27
|
|
|
Climate
|
|
Electronics
|
|
Interiors
|
|
Total
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Three months ended March 31, 2012
|
$
|
84
|
|
|
$
|
28
|
|
|
$
|
41
|
|
|
$
|
153
|
|
Volume and mix
|
42
|
|
|
5
|
|
|
(15
|
)
|
|
32
|
|
||||
Currency
|
(2
|
)
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
Other
|
(11
|
)
|
|
(4
|
)
|
|
5
|
|
|
(10
|
)
|
||||
Three months ended March 31, 2013
|
$
|
113
|
|
|
$
|
30
|
|
|
$
|
33
|
|
|
$
|
176
|
|
Reconciling Item:
|
|
|
|
|
|
|
|
||||||||
Corporate
|
|
|
|
|
|
|
(6
|
)
|
|||||||
Total Adjusted EBITDA
|
|
|
|
|
|
|
$
|
170
|
|
•
|
Visteon’s ability to satisfy its future capital and liquidity requirements; Visteon’s ability to access the credit and capital markets at the times and in the amounts needed and on terms acceptable to Visteon; Visteon’s ability to comply with covenants applicable to it; and the continuation of acceptable supplier payment terms.
|
•
|
Visteon’s ability to satisfy its pension and other postretirement employee benefit obligations, and to retire outstanding debt and satisfy other contractual commitments, all at the levels and times planned by management.
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•
|
Visteon’s ability to access funds generated by its foreign subsidiaries and joint ventures on a timely and cost effective basis.
|
•
|
Changes in the operations (including products, product planning and part sourcing), financial condition, results of operations or market share of Visteon’s customers.
|
•
|
Changes in vehicle production volume of Visteon’s customers in the markets where it operates, and in particular changes in Ford’s and Hyundai Kia’s vehicle production volumes and platform mix.
|
•
|
Increases in commodity costs or disruptions in the supply of commodities, including steel, resins, aluminum, copper, fuel and natural gas.
|
•
|
Visteon’s ability to generate cost savings to offset or exceed agreed upon price reductions or price reductions to win additional business and, in general, improve its operating performance; to achieve the benefits of its restructuring actions; and to recover engineering and tooling costs and capital investments.
|
•
|
Visteon’s ability to compete favorably with automotive parts suppliers with lower cost structures and greater ability to rationalize operations; and to exit non-performing businesses on satisfactory terms, particularly due to limited flexibility under existing labor agreements.
|
•
|
Restrictions in labor contracts with unions that restrict Visteon’s ability to close plants, divest unprofitable, noncompetitive businesses, change local work rules and practices at a number of facilities and implement cost-saving measures.
|
•
|
The costs and timing of facility closures or dispositions, business or product realignments, or similar restructuring actions, including potential asset impairment or other charges related to the implementation of these actions or other adverse industry conditions and contingent liabilities.
|
•
|
Significant changes in the competitive environment in the major markets where Visteon procures materials, components or supplies or where its products are manufactured, distributed or sold.
|
•
|
Legal and administrative proceedings, investigations and claims, including shareholder class actions, inquiries by regulatory agencies, product liability, warranty, employee-related, environmental and safety claims and any recalls of products manufactured or sold by Visteon.
|
•
|
Changes in economic conditions, currency exchange rates, changes in foreign laws, regulations or trade policies or political stability in foreign countries where Visteon procures materials, components or supplies or where its products are manufactured, distributed or sold.
|
•
|
Shortages of materials or interruptions in transportation systems, labor strikes, work stoppages or other interruptions to or difficulties in the employment of labor in the major markets where Visteon purchases materials, components or supplies to manufacture its products or where its products are manufactured, distributed or sold.
|
•
|
Changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, domestic and foreign, that may tax or otherwise increase the cost of, or otherwise affect, the manufacture, licensing, distribution, sale, ownership or use of Visteon’s products or assets.
|
•
|
Possible terrorist attacks or acts of war, which could exacerbate other risks such as slowed vehicle production, interruptions in the transportation system or fuel prices and supply.
|
•
|
The cyclical and seasonal nature of the automotive industry.
|
•
|
Visteon’s ability to comply with environmental, safety and other regulations applicable to it and any increase in the requirements, responsibilities and associated expenses and expenditures of these regulations.
|
•
|
Visteon’s ability to protect its intellectual property rights, and to respond to changes in technology and technological risks and to claims by others that Visteon infringes their intellectual property rights.
|
•
|
Visteon’s ability to quickly and adequately remediate control deficiencies in its internal control over financial reporting.
|
•
|
Other factors, risks and uncertainties detailed from time to time in Visteon’s Securities and Exchange Commission filings.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total Number of Shares (or Units) Purchased (1)
|
Average Price Paid per Share (or Unit)
|
Total Number of Shares (or units) Purchased as Part of Publicly Announced Plans or Programs (2)
|
Approximate Dollar Value of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (2) (in millions)
|
||
January 1, 2013 to January 31, 2013
|
9,835
|
|
$56.29
|
—
|
|
$250
|
February 1, 2013 to February 28, 2013
|
7,135
|
|
$58.12
|
—
|
|
$250
|
March 1, 2013 to March 31, 2013
|
1,714,042
|
|
$56.58
|
1,713,502
|
|
$125
|
Total
|
1,731,012
|
|
$56.58
|
1,713,502
|
|
$125
|
(1)
|
This column includes 17,510 shares surrendered to the Company by employees to satisfy tax withholding obligations in connection with the vesting of restricted share and stock unit awards made pursuant to the Visteon Corporation 2010 Incentive Plan.
|
ITEM 6.
|
EXHIBITS
|
|
VISTEON CORPORATION
|
|
|
|
|
|
By:
|
/s/ Michael J. Widgren
|
|
|
Michael J. Widgren
|
|
|
Vice President, Corporate Controller and Chief Accounting Officer
|
Exhibit No.
|
|
Description
|
10.1
|
|
Sixth Amendment to Revolving Loan Credit Agreement, dated as of January 28, 2013, by and among Visteon Corporation, certain of its domestic subsidiaries signatory thereto, Morgan Stanley Senior Funding, Inc., as administrative agent and co-collateral agent, Bank of America, N.A., as co-collateral agent, and the lenders and L/C issuers party thereto (incorporated by reference to Exhibit 10.6.3 to the Annual Report on Form 10-K of Visteon Corporation filed on February 28, 2013).
|
10.2
|
|
Master Share Purchase Agreement, dated as of January 11, 2013, by and among Visteon Corporation, certain subsidiaries of Visteon Corporation, and Halla Climate Control Corporation (incorporated by reference to Exhibit 10.28 to the Annual Report on Form 10-K of Visteon Corporation filed on February 28, 2013).
|
31.1
|
|
Rule 13a-14(a) Certification of Chief Executive Officer dated May 9, 2013.
|
31.2
|
|
Rule 13a-14(a) Certification of Chief Financial Officer dated May 9, 2013.
|
32.1
|
|
Section 1350 Certification of Chief Executive Officer dated May 9, 2013.
|
32.2
|
|
Section 1350 Certification of Chief Financial Officer dated May 9, 2013.
|
101.INS
|
|
XBRL Instance Document.**
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.**
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.**
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.**
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.**
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.**
|
*
|
Indicates that exhibit is a management contract or compensatory plan or arrangement.
|
**
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files as Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
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