![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 111.17 | 101.19 | 128.57 | 0 | 09:05:35 |
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)
|
Page
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 1.
|
Consolidated Financial Statements
|
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Sales
|
$
|
765
|
|
|
$
|
770
|
|
|
$
|
2,349
|
|
|
$
|
2,345
|
|
Cost of sales
|
649
|
|
|
665
|
|
|
1,990
|
|
|
2,010
|
|
||||
Gross margin
|
116
|
|
|
105
|
|
|
359
|
|
|
335
|
|
||||
Selling, general and administrative expenses
|
54
|
|
|
53
|
|
|
158
|
|
|
163
|
|
||||
Restructuring expense
|
6
|
|
|
5
|
|
|
10
|
|
|
22
|
|
||||
Interest expense
|
4
|
|
|
6
|
|
|
15
|
|
|
14
|
|
||||
Interest income
|
1
|
|
|
1
|
|
|
3
|
|
|
4
|
|
||||
Equity in net income of non-consolidated affiliates
|
1
|
|
|
—
|
|
|
6
|
|
|
3
|
|
||||
Other (income) expense, net
|
(1
|
)
|
|
12
|
|
|
(3
|
)
|
|
16
|
|
||||
Income before income taxes
|
55
|
|
|
30
|
|
|
188
|
|
|
127
|
|
||||
Provision for income taxes
|
8
|
|
|
5
|
|
|
34
|
|
|
27
|
|
||||
Net income from continuing operations
|
47
|
|
|
25
|
|
|
154
|
|
|
100
|
|
||||
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
7
|
|
|
8
|
|
|
(15
|
)
|
||||
Net income
|
47
|
|
|
32
|
|
|
162
|
|
|
85
|
|
||||
Net income attributable to non-controlling interests
|
4
|
|
|
4
|
|
|
11
|
|
|
12
|
|
||||
Net income attributable to Visteon Corporation
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
151
|
|
|
$
|
73
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
1.38
|
|
|
$
|
0.62
|
|
|
$
|
4.50
|
|
|
$
|
2.47
|
|
Discontinued operations
|
—
|
|
|
0.21
|
|
|
0.25
|
|
|
(0.42
|
)
|
||||
Basic earnings per share attributable to Visteon Corporation
|
$
|
1.38
|
|
|
$
|
0.83
|
|
|
$
|
4.75
|
|
|
$
|
2.05
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
1.35
|
|
|
$
|
0.61
|
|
|
$
|
4.43
|
|
|
$
|
2.44
|
|
Discontinued operations
|
—
|
|
|
0.20
|
|
|
0.25
|
|
|
(0.41
|
)
|
||||
Diluted earnings per share attributable to Visteon Corporation
|
$
|
1.35
|
|
|
$
|
0.81
|
|
|
$
|
4.68
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
59
|
|
|
$
|
35
|
|
|
$
|
205
|
|
|
$
|
106
|
|
Comprehensive income attributable to Visteon Corporation
|
$
|
53
|
|
|
$
|
31
|
|
|
$
|
190
|
|
|
$
|
96
|
|
|
(Unaudited)
|
|
|
||||
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
ASSETS
|
|||||||
Cash and equivalents
|
$
|
732
|
|
|
$
|
878
|
|
Restricted cash
|
3
|
|
|
4
|
|
||
Accounts receivable, net
|
506
|
|
|
505
|
|
||
Inventories, net
|
174
|
|
|
151
|
|
||
Other current assets
|
181
|
|
|
170
|
|
||
Total current assets
|
1,596
|
|
|
1,708
|
|
||
|
|
|
|
||||
Property and equipment, net
|
361
|
|
|
345
|
|
||
Intangible assets, net
|
128
|
|
|
129
|
|
||
Investments in non-consolidated affiliates
|
40
|
|
|
45
|
|
||
Other non-current assets
|
154
|
|
|
146
|
|
||
Total assets
|
$
|
2,279
|
|
|
$
|
2,373
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|||||||
Short-term debt, including current portion of long-term debt
|
$
|
44
|
|
|
$
|
36
|
|
Accounts payable
|
429
|
|
|
463
|
|
||
Accrued employee liabilities
|
102
|
|
|
103
|
|
||
Other current liabilities
|
235
|
|
|
309
|
|
||
Total current liabilities
|
810
|
|
|
911
|
|
||
|
|
|
|
||||
Long-term debt
|
347
|
|
|
346
|
|
||
Employee benefits
|
305
|
|
|
303
|
|
||
Deferred tax liabilities
|
22
|
|
|
20
|
|
||
Other non-current liabilities
|
62
|
|
|
69
|
|
||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock (par value $0.01, 50 million shares authorized, none outstanding as of September 30, 2017 and December 31, 2016)
|
—
|
|
|
—
|
|
||
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 31 and 33 million shares outstanding as of September 30, 2017 and December 31, 2016, respectively)
|
1
|
|
|
1
|
|
||
Additional paid-in capital
|
1,333
|
|
|
1,327
|
|
||
Retained earnings
|
1,420
|
|
|
1,269
|
|
||
Accumulated other comprehensive loss
|
(194
|
)
|
|
(233
|
)
|
||
Treasury stock
|
(1,945
|
)
|
|
(1,778
|
)
|
||
Total Visteon Corporation stockholders’ equity
|
615
|
|
|
586
|
|
||
Non-controlling interests
|
118
|
|
|
138
|
|
||
Total equity
|
733
|
|
|
724
|
|
||
Total liabilities and equity
|
$
|
2,279
|
|
|
$
|
2,373
|
|
|
Nine Months Ended
September 30 |
||||||
|
2017
|
|
2016
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
162
|
|
|
$
|
85
|
|
Adjustments to reconcile net income to net cash provided from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
62
|
|
|
62
|
|
||
Equity in net income of non-consolidated affiliates, net of dividends remitted
|
(6
|
)
|
|
(2
|
)
|
||
Non-cash stock-based compensation
|
9
|
|
|
6
|
|
||
Gain on India operations repurchase
|
(7
|
)
|
|
—
|
|
||
(Gains) losses on divestitures and impairments
|
(4
|
)
|
|
5
|
|
||
Other non-cash items
|
2
|
|
|
15
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
29
|
|
|
15
|
|
||
Inventories
|
(15
|
)
|
|
15
|
|
||
Accounts payable
|
(39
|
)
|
|
(45
|
)
|
||
Other assets and other liabilities
|
(62
|
)
|
|
(118
|
)
|
||
Net cash provided from operating activities
|
131
|
|
|
38
|
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures, including intangibles
|
(69
|
)
|
|
(56
|
)
|
||
India operations repurchase
|
(47
|
)
|
|
—
|
|
||
Payments for acquisition and divestiture of businesses
|
(2
|
)
|
|
(15
|
)
|
||
Settlement of net investment hedge
|
5
|
|
|
—
|
|
||
Proceeds from asset sales and business divestitures
|
15
|
|
|
15
|
|
||
Climate Transaction withholding tax refund
|
—
|
|
|
356
|
|
||
Short-term investments
|
—
|
|
|
47
|
|
||
Loans to non-consolidated affiliates, net of repayments
|
—
|
|
|
(8
|
)
|
||
Other
|
1
|
|
|
—
|
|
||
Net cash (used by) provided from investing activities
|
(97
|
)
|
|
339
|
|
||
Financing Activities
|
|
|
|
||||
Short-term debt, net
|
8
|
|
|
(11
|
)
|
||
Principal payments on debt
|
(2
|
)
|
|
(2
|
)
|
||
Distribution payments
|
(1
|
)
|
|
(1,736
|
)
|
||
Repurchase of common stock
|
(170
|
)
|
|
(500
|
)
|
||
Dividends paid to non-controlling interests
|
(29
|
)
|
|
—
|
|
||
Stock based compensation tax withholding payments
|
(1
|
)
|
|
(11
|
)
|
||
Other
|
(2
|
)
|
|
—
|
|
||
Net cash used by financing activities
|
(197
|
)
|
|
(2,260
|
)
|
||
Effect of exchange rate changes on cash and equivalents
|
17
|
|
|
6
|
|
||
Net decrease in cash and equivalents
|
(146
|
)
|
|
(1,877
|
)
|
||
Cash and equivalents at beginning of the period
|
878
|
|
|
2,729
|
|
||
Cash and equivalents at end of the period
|
$
|
732
|
|
|
$
|
852
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Transformation initiatives
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
3
|
|
Gain on non-consolidated affiliate transactions, net
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(1
|
)
|
||||
Foreign currency translation charge
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
Loss on asset contribution
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Transaction exchange losses
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
|
$
|
(1
|
)
|
|
$
|
12
|
|
|
$
|
(3
|
)
|
|
$
|
16
|
|
Assets Acquired:
|
|
|
Liabilities Assumed:
|
|
||||
Accounts receivable
|
$
|
1
|
|
|
Deferred tax liabilities
|
$
|
2
|
|
Intangible assets
|
7
|
|
|
Total liabilities assumed
|
2
|
|
||
Goodwill
|
11
|
|
|
|
|
|||
Total assets acquired
|
$
|
19
|
|
|
Purchase price
|
$
|
17
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Sales
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
34
|
|
Cost of sales
|
—
|
|
|
20
|
|
|
—
|
|
|
48
|
|
||||
Gross margin
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(14
|
)
|
||||
Selling, general and administrative expenses
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||
(Gain) loss on Climate Transaction
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
2
|
|
||||
Loss and impairment on Interiors Divestiture
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Other expense, net
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
(Loss) income from discontinued operations before income taxes
|
—
|
|
|
(9
|
)
|
|
7
|
|
|
(24
|
)
|
||||
Benefit for income taxes
|
—
|
|
|
(16
|
)
|
|
(1
|
)
|
|
(9
|
)
|
||||
Net income (loss) from discontinued operations, net of tax, attributable to Visteon
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
(15
|
)
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Payables due to YFVIC
|
$
|
9
|
|
|
$
|
14
|
|
Exposure to loss in YFVIC
|
|
|
|
||||
Investment in YFVIC
|
$
|
27
|
|
|
$
|
22
|
|
Receivables due from YFVIC
|
28
|
|
|
15
|
|
||
Subordinated loan receivable
|
22
|
|
|
22
|
|
||
Loan guarantee
|
15
|
|
|
22
|
|
||
Maximum exposure to loss in YFVIC
|
$
|
92
|
|
|
$
|
81
|
|
|
Electronics
|
|
Other
|
|
Total
|
||||||
|
(Dollars in Millions)
|
||||||||||
December 31, 2016
|
$
|
31
|
|
|
$
|
9
|
|
|
$
|
40
|
|
Expense
|
1
|
|
|
—
|
|
|
1
|
|
|||
Utilization
|
(8
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|||
March 31, 2017
|
24
|
|
|
8
|
|
|
32
|
|
|||
Expense
|
6
|
|
|
—
|
|
|
6
|
|
|||
Utilization
|
(6
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|||
Reversals
|
(2
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|||
Foreign currency
|
2
|
|
|
—
|
|
|
2
|
|
|||
June 30, 2017
|
24
|
|
|
6
|
|
|
30
|
|
|||
Expense
|
7
|
|
|
—
|
|
|
7
|
|
|||
Utilization
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||
Reversals
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Foreign currency
|
1
|
|
|
—
|
|
|
1
|
|
|||
September 30, 2017
|
$
|
20
|
|
|
$
|
6
|
|
|
$
|
26
|
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Raw materials
|
$
|
109
|
|
|
$
|
83
|
|
Work-in-process
|
33
|
|
|
34
|
|
||
Finished products
|
32
|
|
|
34
|
|
||
|
$
|
174
|
|
|
$
|
151
|
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Recoverable taxes
|
$
|
61
|
|
|
$
|
60
|
|
Joint venture receivables
|
37
|
|
|
39
|
|
||
Prepaid assets and deposits
|
36
|
|
|
35
|
|
||
Notes receivable
|
28
|
|
|
18
|
|
||
Contractually reimbursable engineering costs
|
15
|
|
|
7
|
|
||
Foreign currency hedges
|
1
|
|
|
6
|
|
||
Other
|
3
|
|
|
5
|
|
||
|
$
|
181
|
|
|
$
|
170
|
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Deferred tax assets
|
$
|
49
|
|
|
$
|
48
|
|
Recoverable taxes
|
36
|
|
|
34
|
|
||
Joint venture receivables
|
26
|
|
|
25
|
|
||
Contractually reimbursable engineering costs
|
19
|
|
|
11
|
|
||
Long term notes receivable
|
10
|
|
|
10
|
|
||
Other
|
14
|
|
|
18
|
|
||
|
$
|
154
|
|
|
$
|
146
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Estimated Weighted Average Useful Life (years)
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||||||||
|
|
|
(Dollars in Millions)
|
||||||||||||||||||||||
Definite-Lived:
|
|
|
|||||||||||||||||||||||
Developed technology
|
10
|
|
$
|
41
|
|
|
$
|
28
|
|
|
$
|
13
|
|
|
$
|
40
|
|
|
$
|
25
|
|
|
$
|
15
|
|
Customer related
|
9
|
|
85
|
|
|
31
|
|
|
54
|
|
|
83
|
|
|
25
|
|
|
58
|
|
||||||
Capitalized software development
|
3
|
|
6
|
|
|
—
|
|
|
6
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Other
|
32
|
|
10
|
|
|
1
|
|
|
9
|
|
|
8
|
|
|
1
|
|
|
7
|
|
||||||
Subtotal
|
|
|
142
|
|
|
60
|
|
|
82
|
|
|
135
|
|
|
51
|
|
|
84
|
|
||||||
Indefinite-Lived:
|
|
|
|||||||||||||||||||||||
Goodwill
|
|
|
46
|
|
|
—
|
|
|
46
|
|
|
45
|
|
|
—
|
|
|
45
|
|
||||||
Total
|
|
|
$
|
188
|
|
|
$
|
60
|
|
|
$
|
128
|
|
|
$
|
180
|
|
|
$
|
51
|
|
|
$
|
129
|
|
|
Definite-lived intangibles
|
|
Indefinite-lived intangibles
|
|
|
||||||||||||||||||
|
Developed Technology
|
|
Customer Related
|
|
Capitalized Software Development
|
|
Other
|
|
Goodwill
|
Total
|
|||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
December 31, 2016
|
$
|
15
|
|
|
$
|
58
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
45
|
|
|
$
|
129
|
|
Additions
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||||
Foreign currency
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
||||||
Amortization
|
(3
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
September 30, 2017
|
$
|
13
|
|
|
$
|
54
|
|
|
$
|
6
|
|
|
$
|
9
|
|
|
$
|
46
|
|
|
$
|
128
|
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Product warranty and recall accruals
|
$
|
39
|
|
|
$
|
43
|
|
Contribution payable
|
35
|
|
|
31
|
|
||
Restructuring reserves
|
26
|
|
|
40
|
|
||
Rent and royalties
|
23
|
|
|
23
|
|
||
Foreign currency hedges
|
22
|
|
|
7
|
|
||
Deferred income
|
14
|
|
|
14
|
|
||
Distribution payable
|
14
|
|
|
15
|
|
||
Dividends payable
|
12
|
|
|
5
|
|
||
Income taxes payable
|
11
|
|
|
22
|
|
||
Joint venture payables
|
10
|
|
|
22
|
|
||
Non-income taxes payable
|
3
|
|
|
8
|
|
||
Electronics operations repurchase commitment
|
—
|
|
|
50
|
|
||
Other
|
26
|
|
|
29
|
|
||
|
$
|
235
|
|
|
$
|
309
|
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Deferred income
|
$
|
16
|
|
|
$
|
18
|
|
Product warranty and recall accruals
|
12
|
|
|
12
|
|
||
Income tax reserves
|
11
|
|
|
14
|
|
||
Non-income tax reserves
|
8
|
|
|
10
|
|
||
Other
|
15
|
|
|
15
|
|
||
|
$
|
62
|
|
|
$
|
69
|
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Short-Term Debt:
|
|
|
|
||||
Current portion of long-term debt
|
$
|
1
|
|
|
$
|
3
|
|
Short-term borrowings
|
43
|
|
|
33
|
|
||
|
$
|
44
|
|
|
$
|
36
|
|
Long-Term Debt:
|
|
|
|
||||
Term debt facility
|
$
|
347
|
|
|
$
|
346
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Costs Recognized in Income:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost
|
7
|
|
|
7
|
|
|
2
|
|
|
3
|
|
||||
Expected return on plan assets
|
(10
|
)
|
|
(10
|
)
|
|
(2
|
)
|
|
(3
|
)
|
||||
Net pension (income) expense
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
|
$
|
1
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Costs Recognized in Income:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Interest cost
|
21
|
|
|
21
|
|
|
7
|
|
|
9
|
|
||||
Expected return on plan assets
|
(30
|
)
|
|
(31
|
)
|
|
(7
|
)
|
|
(9
|
)
|
||||
Settlements and curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Amortization of losses and other
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Net pension (income) expense
|
$
|
(9
|
)
|
|
$
|
(10
|
)
|
|
$
|
3
|
|
|
$
|
3
|
|
|
Nine Months Ended
September 30, 2017 |
||
|
(Dollars in Millions)
|
||
Beginning balance
|
$
|
35
|
|
Tax positions related to current period:
|
|
||
Additions
|
2
|
|
|
Tax positions related to prior periods:
|
|
||
Reductions
|
(21
|
)
|
|
Effect of exchange rate changes
|
1
|
|
|
Ending balance
|
$
|
17
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
Visteon
|
|
NCI
|
|
Total
|
|
Visteon
|
|
NCI
|
|
Total
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Three Months Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
569
|
|
|
$
|
136
|
|
|
$
|
705
|
|
|
$
|
616
|
|
|
$
|
148
|
|
|
$
|
764
|
|
Net income from continuing operations
|
43
|
|
|
4
|
|
|
47
|
|
|
21
|
|
|
4
|
|
|
25
|
|
||||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Net income
|
43
|
|
|
4
|
|
|
47
|
|
|
28
|
|
|
4
|
|
|
32
|
|
||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
17
|
|
|
2
|
|
|
19
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Net investment hedge
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Benefit plans
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Unrealized hedging gain
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total other comprehensive income
|
10
|
|
|
2
|
|
|
12
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||
Stock-based compensation, net
|
3
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Share repurchase
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||
Ending balance
|
$
|
615
|
|
|
$
|
118
|
|
|
$
|
733
|
|
|
$
|
648
|
|
|
$
|
146
|
|
|
$
|
794
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
Visteon
|
|
NCI
|
|
Total
|
|
Visteon
|
|
NCI
|
|
Total
|
||||||||||||
|
(Dollars in Millions)
|
||||||||||||||||||||||
Nine Months Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
586
|
|
|
$
|
138
|
|
|
$
|
724
|
|
|
$
|
1,057
|
|
|
$
|
142
|
|
|
$
|
1,199
|
|
Net income from continuing operations
|
143
|
|
|
11
|
|
|
154
|
|
|
88
|
|
|
12
|
|
|
100
|
|
||||||
Net income (loss) from discontinued operations
|
8
|
|
|
—
|
|
|
8
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Net income
|
151
|
|
|
11
|
|
|
162
|
|
|
73
|
|
|
12
|
|
|
85
|
|
||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
57
|
|
|
4
|
|
|
61
|
|
|
32
|
|
|
(2
|
)
|
|
30
|
|
||||||
Net investment hedge
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Benefit plans
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Unrealized hedging gain (loss)
|
4
|
|
|
—
|
|
|
4
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Total other comprehensive income (loss)
|
39
|
|
|
4
|
|
|
43
|
|
|
23
|
|
|
(2
|
)
|
|
21
|
|
||||||
Stock-based compensation, net
|
9
|
|
|
—
|
|
|
9
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Share repurchase
|
(170
|
)
|
|
—
|
|
|
(170
|
)
|
|
(500
|
)
|
|
—
|
|
|
(500
|
)
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(35
|
)
|
|
(35
|
)
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||
Ending balance
|
$
|
615
|
|
|
$
|
118
|
|
|
$
|
733
|
|
|
$
|
648
|
|
|
$
|
146
|
|
|
$
|
794
|
|
|
September 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Yanfeng Visteon Automotive Electronics Co., Ltd.
|
$
|
73
|
|
|
$
|
97
|
|
Shanghai Visteon Automotive Electronics, Co., Ltd.
|
43
|
|
|
39
|
|
||
Other
|
2
|
|
|
2
|
|
||
|
$
|
118
|
|
|
$
|
138
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Changes in AOCI:
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(204
|
)
|
|
$
|
(170
|
)
|
|
$
|
(233
|
)
|
|
$
|
(190
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
8
|
|
|
2
|
|
|
34
|
|
|
24
|
|
||||
Amounts reclassified from AOCI
|
2
|
|
|
1
|
|
|
5
|
|
|
(1
|
)
|
||||
Ending balance
|
$
|
(194
|
)
|
|
$
|
(167
|
)
|
|
$
|
(194
|
)
|
|
$
|
(167
|
)
|
Changes in AOCI by Component:
|
|
|
|||||||||||||
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(123
|
)
|
|
$
|
(134
|
)
|
|
$
|
(163
|
)
|
|
$
|
(159
|
)
|
Other comprehensive income before reclassification, net of tax (a)
|
17
|
|
|
7
|
|
|
57
|
|
|
32
|
|
||||
Ending balance
|
(106
|
)
|
|
(127
|
)
|
|
(106
|
)
|
|
(127
|
)
|
||||
Net investment hedge
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
(3
|
)
|
|
2
|
|
|
10
|
|
|
4
|
|
||||
Other comprehensive loss before reclassification, net of tax (a)
|
(7
|
)
|
|
(4
|
)
|
|
(20
|
)
|
|
(6
|
)
|
||||
Ending balance
|
(10
|
)
|
|
(2)
|
|
|
(10
|
)
|
|
(2)
|
|
||||
Benefit plans
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
(76
|
)
|
|
(35)
|
|
|
(75
|
)
|
|
(36)
|
|
||||
Other comprehensive income before reclassification, net of tax (a)
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Ending balance
|
(77
|
)
|
|
(35
|
)
|
|
(77
|
)
|
|
(35
|
)
|
||||
Unrealized hedging (loss) gain
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
(2
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
1
|
|
||||
Other comprehensive income (loss) before reclassification, net of tax (b)
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Amounts reclassified from AOCI
|
2
|
|
|
1
|
|
|
5
|
|
|
(2
|
)
|
||||
Ending balance
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(3
|
)
|
||||
Total AOCI
|
$
|
(194
|
)
|
|
$
|
(167
|
)
|
|
$
|
(194
|
)
|
|
$
|
(167
|
)
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In Millions, Except Per Share Amounts)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations attributable to Visteon
|
$
|
43
|
|
|
$
|
21
|
|
|
$
|
143
|
|
|
$
|
88
|
|
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
7
|
|
|
8
|
|
|
(15
|
)
|
||||
Net income attributable to Visteon
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
151
|
|
|
$
|
73
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Average common stock outstanding - basic
|
31.2
|
|
|
34.0
|
|
|
31.8
|
|
|
35.6
|
|
||||
Dilutive effect of performance based share units and other
|
0.6
|
|
|
0.4
|
|
|
0.5
|
|
|
0.4
|
|
||||
Diluted shares
|
31.8
|
|
|
34.4
|
|
|
32.3
|
|
|
36.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted Per Share Data:
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share attributable to Visteon:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
1.38
|
|
|
$
|
0.62
|
|
|
$
|
4.50
|
|
|
$
|
2.47
|
|
Discontinued operations
|
—
|
|
|
0.21
|
|
|
0.25
|
|
|
(0.42
|
)
|
||||
|
$
|
1.38
|
|
|
$
|
0.83
|
|
|
$
|
4.75
|
|
|
$
|
2.05
|
|
Diluted earnings (loss) per share attributable to Visteon:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
1.35
|
|
|
$
|
0.61
|
|
|
$
|
4.43
|
|
|
$
|
2.44
|
|
Discontinued operations
|
—
|
|
|
0.20
|
|
|
0.25
|
|
|
(0.41
|
)
|
||||
|
$
|
1.35
|
|
|
$
|
0.81
|
|
|
$
|
4.68
|
|
|
$
|
2.03
|
|
•
|
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.
|
|
|
Recorded (Loss) Income into AOCI, net of tax
|
|
Reclassified from AOCI into (Income) Loss
|
|
Recorded in (Income) Loss
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
|
|
(Dollars in Millions)
|
||||||||||||||||||||||
Three Months Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency risk - Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment hedges
|
|
(7
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-designated cash flow hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
||||||
Interest rate risk - Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
|
|
$
|
(8
|
)
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
Nine Months Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency risk - Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment hedges
|
|
(20
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-designated cash flow hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
||||||
Interest rate risk - Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
|
|
$
|
(21
|
)
|
|
$
|
(5
|
)
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
|
Nine Months Ended September 30
|
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Beginning balance
|
$
|
55
|
|
|
$
|
38
|
|
Accruals for products shipped
|
15
|
|
|
12
|
|
||
Changes in estimates
|
5
|
|
|
4
|
|
||
Specific cause actions
|
3
|
|
|
7
|
|
||
Recoverable warranty/recalls
|
—
|
|
|
6
|
|
||
Foreign currency
|
2
|
|
|
1
|
|
||
Settlements
|
(29
|
)
|
|
(13
|
)
|
||
Ending balance
|
$
|
51
|
|
|
$
|
55
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Electronics
|
$
|
765
|
|
|
$
|
749
|
|
|
$
|
2,349
|
|
|
$
|
2,304
|
|
Other
|
—
|
|
|
21
|
|
|
—
|
|
|
41
|
|
||||
Total consolidated sales
|
$
|
765
|
|
|
$
|
770
|
|
|
$
|
2,349
|
|
|
$
|
2,345
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Electronics
|
$
|
83
|
|
|
$
|
75
|
|
|
$
|
268
|
|
|
$
|
248
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
||||
Adjusted EBITDA
|
$
|
83
|
|
|
$
|
75
|
|
|
$
|
268
|
|
|
$
|
241
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in Millions)
|
||||||||||||||
Adjusted EBITDA
|
$
|
83
|
|
|
$
|
75
|
|
|
$
|
268
|
|
|
$
|
241
|
|
Depreciation and amortization
|
21
|
|
|
21
|
|
|
62
|
|
|
62
|
|
||||
Restructuring expense
|
6
|
|
|
5
|
|
|
10
|
|
|
22
|
|
||||
Interest expense, net
|
3
|
|
|
5
|
|
|
12
|
|
|
10
|
|
||||
Equity in net income of non-consolidated affiliates
|
(1
|
)
|
|
—
|
|
|
(6
|
)
|
|
(3
|
)
|
||||
Other (income) expense, net
|
(1
|
)
|
|
12
|
|
|
(3
|
)
|
|
16
|
|
||||
Provision for income taxes
|
8
|
|
|
5
|
|
|
34
|
|
|
27
|
|
||||
(Income) loss from discontinued operations, net of tax
|
—
|
|
|
(7
|
)
|
|
(8
|
)
|
|
15
|
|
||||
Net income attributable to non-controlling interests
|
4
|
|
|
4
|
|
|
11
|
|
|
12
|
|
||||
Non-cash, stock-based compensation expense
|
3
|
|
|
2
|
|
|
9
|
|
|
6
|
|
||||
Other
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
|
1
|
|
||||
Net income attributable to Visteon Corporation
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
151
|
|
|
$
|
73
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Strengthen the Core
- Visteon offers technology and related manufacturing operations for audio, head-up displays, information displays, infotainment, instrument clusters and telematics products. During the first nine months of 2017, the Company won $4.6 billion in new business, $0.5 billion higher than the first nine months of 2016. The third quarter 2017 new business wins includes the first award of Phoenix™ infotainment technology, designed to unlock innovation by enabling third-party developers to create apps easily, while delivering built-in cybersecurity and over-the-air ("OTA") updates. Earlier in the year, awards included the third and fourth awards of SmartCore™ cockpit technology which represents the industry-first automotive grade cockpit domain controller, consolidating separate cockpit electronics products on a single, multi-core chip, accessible through integrated human machine interface ("HMI") technology. The Company's backlog, defined as cumulative remaining life of program booked sales, is approximately $18.0 billion as of September 30, 2017, or 5.7 times the last twelve months of sales, reflecting a strong booked sales base on which to launch future growth.
|
•
|
Move Selectively to Adjacent Products
- As consumer demand continues to evolve with an increase in electronics content per vehicle, the Company is advancing its expertise in the areas of cockpit domain controllers, next generation safety applications, and vehicle cybersecurity. Each of these areas require careful assessments of shifting consumer needs and how these new products complement Visteon's core products.
|
•
|
Expand into Autonomous Driving
- The Company's approach to autonomous driving is to feature fail-safe centralized domain hardware, designed for algorithmic developers, and applying artificial intelligence for object detection and other functions.
|
•
|
Accelerate China Business
- The Company plans to accelerate its China business as China’s economic environment offers significant growth opportunities in sales and new technology launches. Visteon will continue to leverage joint venture relationships to drive adoption of new offerings. Approximately 37% of the Company's $18 billion of backlog is expected to be manufactured in China and other countries in Asia.
|
•
|
Enhance Shareholder Returns
- On January 10, 2017, the Company's board of directors authorized management to purchase
$400 million
of Visteon common stock. On February 27, 2017, the Company entered into an accelerated share buyback ("ASB") program with a third-party financial institution to purchase shares of Visteon common stock for an aggregate purchase price of
$125 million
. Through conclusion of the program on May 8, 2017, the Company acquired 1,300,366 shares at an average price of $96.13 per share. In addition to the ASB program, the Company has purchased of 441,613 shares in the open market. Through the end of the third quarter, the Company has purchased 1,741,979 shares at an average price of $97.59 per share for a total of $170 million in share repurchases during 2017.
|
•
|
The Company recorded sales of $
765 million
for the three months ended
September 30, 2017
, representing a decrease of
$5 million
when compared with the same period of
2016
. The decrease is attributable to the exit of other climate operations in 2016, representing a decrease of $21 million. Electronics sales increased by $16 million, primarily due to new business, favorable volumes, product mix, and currency, partially offset by customer pricing net of design changes.
|
•
|
The Company recorded sales of
$2,349 million
for the
nine
months ended
September 30, 2017
, representing an increase of
$4 million
when compared with the same period of
2016
. The increase was primarily due to new business, favorable volumes, and product mix, partially offset by customer pricing net of design changes, unfavorable currency, and the exit of other climate operations in 2016.
|
•
|
Gross margin was
$116 million
or
15.2%
of sales for the three months ended
September 30, 2017
, compared to
$105 million
or
13.6%
of sales for the same period of
2016
. The increase was primarily attributable to improved cost performance including higher engineering recoveries and favorable volumes and currency, partially offset by customer pricing and product mix.
|
•
|
Gross margin was
$359 million
or
15.3%
of sales for the
nine
months ended
September 30, 2017
, compared to
$335 million
or
14.3%
of sales for the same period of
2016
. The increase was primarily attributable to the exit of the Company's other climate operations in 2016, favorable volumes, net new business and improved cost performance including higher engineering recoveries, partially offset by customer pricing, currency impacts, and product mix.
|
•
|
Net income attributable to Visteon was
$43 million
for the three months ended
September 30, 2017
, compared to net income of
$28 million
for the same period of
2016
. The increase of
$15 million
includes improved gross margin of $11 million and the non-recurrence of charges associated with the 2016 South Africa climate disposition of $11 million. These increases were partially offset by an increase in the provision for income taxes of $3 million and the non-recurrence of 2016 discontinued operations net income of $7 million.
|
•
|
Net income attributable to Visteon was
$151 million
for the
nine
months ended
September 30, 2017
, compared to net income of
$73 million
for the same period of
2016
. The increase of
$78 million
includes higher net income due to the non-recurrence of 2016 losses from discontinued operations of $15 million, 2017 income from discontinued operations of $8 million, lower restructuring charges of $12 million, the non-recurrence of charges associated with the 2016 South Africa climate disposition of $11 million, lower selling, general and administrative expenses of $5 million, higher equity in net income of non-consolidated affiliates of $3 million and gains on the sale of non-consolidated affiliates of $3 million. Gross margin improved $24 million including $17 million for electronics operations and $7 million related to the 2016 exit of the climate operations. These improvements were partially offset by higher income taxes of $7 million.
|
•
|
Including discontinued operations, the Company generated
$131 million
of cash in operating activities during the
nine
months ended
September 30, 2017
, compared to cash provided by operations of
$38 million
during the same period of
2016
representing a $93 million improvement. The increase in operating cash flows is attributable to higher net income of $77 million and lower cash tax payments, net of expense of $67 million primarily due to the non-recurrence of
|
•
|
Total cash was $735 million, including $3 million of restricted cash as of
September 30, 2017
, $147 million lower than $882 million as of
December 31, 2016
, primarily attributable to share repurchases of $170 million, $69 million of capital expenditures, and the repurchase of the India electronics operations sold in connection with the Climate Transaction of $47 million, partially offset by the change in cash provided by operating activities of $93 million and $15 million proceeds from business divestiture.
|
|
Electronics
|
|
Other
|
|
Total
|
||||||
|
(Dollars in Millions)
|
||||||||||
Three months ended September 30, 2016
|
$
|
749
|
|
|
$
|
21
|
|
|
$
|
770
|
|
Volume, mix, and net new business
|
26
|
|
|
—
|
|
|
26
|
|
|||
Currency
|
9
|
|
|
—
|
|
|
9
|
|
|||
Customer pricing and other
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|||
Exit and wind-down
|
—
|
|
|
(21
|
)
|
|
(21
|
)
|
|||
Three months ended September 30, 2017
|
$
|
765
|
|
|
$
|
—
|
|
|
$
|
765
|
|
|
Electronics
|
|
Other
|
|
Total
|
||||||
|
(Dollars in Millions)
|
||||||||||
Three months ended September 30, 2016
|
$
|
644
|
|
|
$
|
21
|
|
|
$
|
665
|
|
Currency
|
7
|
|
|
—
|
|
|
7
|
|
|||
Volume, mix, and net new business
|
30
|
|
|
—
|
|
|
30
|
|
|||
Exit and wind-down
|
—
|
|
|
(21
|
)
|
|
(21
|
)
|
|||
Net cost performance
|
(32
|
)
|
|
—
|
|
|
(32
|
)
|
|||
Three months ended September 30, 2017
|
$
|
649
|
|
|
$
|
—
|
|
|
$
|
649
|
|
|
Three Months Ended
September 30 |
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Transformation initiatives
|
$
|
1
|
|
|
$
|
—
|
|
Gain on non-consolidated affiliate transactions, net
|
(2
|
)
|
|
(1
|
)
|
||
Foreign currency translation charge
|
—
|
|
|
11
|
|
||
Loss on asset contribution
|
—
|
|
|
2
|
|
||
|
$
|
(1
|
)
|
|
$
|
12
|
|
|
Three Months Ended September 30
|
||||||||||
|
2017
|
|
2016
|
|
Change
|
||||||
|
(Dollars in Millions)
|
||||||||||
Adjusted EBITDA
|
$
|
83
|
|
|
$
|
75
|
|
|
$
|
8
|
|
Depreciation and amortization
|
21
|
|
|
21
|
|
|
—
|
|
|||
Restructuring expense
|
6
|
|
|
5
|
|
|
1
|
|
|||
Interest expense, net
|
3
|
|
|
5
|
|
|
(2
|
)
|
|||
Equity income of non-consolidated affiliates
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other (income) expense, net
|
(1
|
)
|
|
12
|
|
|
(13
|
)
|
|||
Provision for income taxes
|
8
|
|
|
5
|
|
|
3
|
|
|||
Income from discontinued operations, net of tax
|
—
|
|
|
(7
|
)
|
|
7
|
|
|||
Net income attributable to non-controlling interests
|
4
|
|
|
4
|
|
|
—
|
|
|||
Non-cash, stock-based compensation
|
3
|
|
|
2
|
|
|
1
|
|
|||
Other
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
Net income attributable to Visteon Corporation
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
15
|
|
|
Electronics
|
|
Other
|
|
Total
|
||||||
|
(Dollars in Millions)
|
||||||||||
Nine months ended September 30, 2016
|
$
|
2,304
|
|
|
$
|
41
|
|
|
$
|
2,345
|
|
Volume, mix, and net new business
|
117
|
|
|
—
|
|
|
117
|
|
|||
Currency
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|||
Customer pricing and other
|
(58
|
)
|
|
—
|
|
|
(58
|
)
|
|||
Exit and wind-down
|
—
|
|
|
(41
|
)
|
|
(41
|
)
|
|||
Nine months ended September 30, 2017
|
$
|
2,349
|
|
|
$
|
—
|
|
|
$
|
2,349
|
|
|
Electronics
|
|
Other
|
|
Total
|
||||||
|
(Dollars in Millions)
|
||||||||||
Nine months ended September 30, 2016
|
$
|
1,962
|
|
|
$
|
48
|
|
|
$
|
2,010
|
|
Currency
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|||
Volume, mix, and net new business
|
112
|
|
|
—
|
|
|
112
|
|
|||
Exit and wind-down
|
—
|
|
|
(48
|
)
|
|
(48
|
)
|
|||
Net cost performance
|
(72
|
)
|
|
—
|
|
|
(72
|
)
|
|||
Nine months ended September 30, 2017
|
$
|
1,990
|
|
|
$
|
—
|
|
|
$
|
1,990
|
|
|
Nine Months Ended
September 30 |
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in Millions)
|
||||||
Transformation initiatives
|
$
|
1
|
|
|
$
|
3
|
|
Gain on non-consolidated affiliate transactions, net
|
(4
|
)
|
|
(1
|
)
|
||
Foreign currency translation charge
|
—
|
|
|
11
|
|
||
Loss on asset contribution
|
—
|
|
|
2
|
|
||
Transaction exchange losses
|
—
|
|
|
1
|
|
||
|
$
|
(3
|
)
|
|
$
|
16
|
|
|
Nine Months Ended September 30
|
||||||||||
|
2017
|
|
2016
|
|
Change
|
||||||
|
(Dollars in Millions)
|
||||||||||
Adjusted EBITDA
|
$
|
268
|
|
|
$
|
241
|
|
|
$
|
27
|
|
Depreciation and amortization
|
62
|
|
|
62
|
|
|
—
|
|
|||
Restructuring expense
|
10
|
|
|
22
|
|
|
(12
|
)
|
|||
Interest expense, net
|
12
|
|
|
10
|
|
|
2
|
|
|||
Equity in net income of non-consolidated affiliates
|
(6
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|||
Other (income) expense, net
|
(3
|
)
|
|
16
|
|
|
(19
|
)
|
|||
Provision for income taxes
|
34
|
|
|
27
|
|
|
7
|
|
|||
(Income) loss from discontinued operations, net of tax
|
(8
|
)
|
|
15
|
|
|
(23
|
)
|
|||
Net income attributable to non-controlling interests
|
11
|
|
|
12
|
|
|
(1
|
)
|
|||
Non-cash, stock-based compensation expense
|
9
|
|
|
6
|
|
|
3
|
|
|||
Other
|
(4
|
)
|
|
1
|
|
|
(5
|
)
|
|||
Net income attributable to Visteon Corporation
|
$
|
151
|
|
|
$
|
73
|
|
|
$
|
78
|
|
•
|
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.
|
•
|
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 vehicle production volumes and platform mix.
|
•
|
Increases in our vendor's commodity costs or disruptions in the supply of commodities, including 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 (3) (in millions)
|
||
Jul. 1, 2017 to Sep. 30, 2017
|
82,780
|
|
|
$121.24
|
|
82,513
|
|
|
$230
|
Total
|
82,780
|
|
|
$121.24
|
|
82,513
|
|
|
$230
|
(1)
|
Includes 267 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.
|
(2)
|
During the third quarter 2017 the Company acquired 82,513 shares from the open market share repurchases.
|
(3)
|
On January 10, 2017, the Company's board of directors authorized $400 million of share repurchase of its shares of common stock. As of September 30, 2017, there is $230 million remaining on the authorization. Additional repurchases of common stock, if any, may occur at the discretion of the Company.
|
Item 6.
|
Exhibits
|
Exhibit No.
|
|
Description
|
|
||
|
||
|
||
|
||
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.
|
|
VISTEON CORPORATION
|
|
|
|
|
|
By:
|
/s/ Stephanie S. Marianos
|
|
|
Stephanie S. Marianos
|
|
|
Vice President and Chief Accounting Officer
|
1 Year Visteon Chart |
1 Month Visteon Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions