Stockholders' Equity and Non-controlling Interests

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Shareholders' Equity and Non-controlling Interests

NOTE 13. Stockholders’ Equity and Non-controlling Interests

Changes in equity for the three months ended March 31, 2016 and 2015 are as follows:

	2016								2015
	Visteon			NCI		Total			Visteon			NCI			Total
	(Dollars in Millions)
Three Months Ended March 31
Beginning balance	$	1,057		$	142	$	1,199		$	865		$	956		$	1,821
Net income from continuing operations	32			4		36			19			5			24
Net (loss) income from discontinued operations	(13		)	—		(13		)	31			15			46
Net income	19			4		23			50			20			70
Other comprehensive income (loss)
Foreign currency translation adjustments	23			—		23			(67		)	(12		)	(79		)
Benefit plans	—			—		—			16			1			17
Unrealized hedging (loss) gain	(4		)	—		(4		)	9			3			12
Total other comprehensive income (loss)	19			—		19			(42		)	(8		)	(50		)
Stock-based compensation, net	(9		)	—		(9		)	1			—			1
Warrant exercises	—			—		—			9			—			9
Share repurchase	(500		)	—		(500		)	—			—			—
Dividends to non-controlling interests	—			—		—			—			(28		)	(28		)
Ending balance	$	586		$	146	$	732		$	883		$	940		$	1,823

Share Repurchase Program

On June 16, 2015, the Company announced an accelerated stock buyback ("ASB") program with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $500 million, as the first of announced shareholder return actions. Under the program, the Company paid the financial institution $500 million and received an initial delivery of 3,712,297 shares of common stock using a reference price of $107.75. The program concluded in December 2015 and the Company received an additional 1,058,965 shares. The final settlement price for all shares delivered under this 2015 ASB program was $104.79.

During the fourth quarter of 2015, the Company entered into an agreement with a third party financial institution to purchase up to $150 million of Visteon common stock in accordance with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934 ("10b5-1 Share Repurchase Program"). During the period of the program, which concluded on March 1, 2016, the Company paid approximately $105 million to repurchase 1,607,849 shares at an average price of $65.05.   

On March 1, 2016, the Company entered into another ASB program with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $395 million. Under the program, the Company paid the financial institution $395 million and received an initial delivery of 4,370,678 shares of common stock using a reference price of $72.30. The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of the Company’s common stock during the term of the transaction, less an agreed discount and subject to adjustments pursuant to the terms and conditions of the ASB Agreement. The final settlement of this ASB Agreement is expected to occur by the end of 2016, but may be accelerated at the option of the third-party financial institution.

The Company anticipates that additional repurchases of common stock, if any, would occur from time to time in open market transactions or in privately negotiated transactions depending on market and economic conditions, share price, trading volume, alternative uses of capital and other factors.

Distribution

On December 9, 2015, the Company declared a special distribution of $43.40 per share of its common stock outstanding as of January 15, 2016, or approximately $1.75 billion in the aggregate. On January 22, 2016 approximately $1.74 billion was paid, the remaining $15 million will be paid over a two-year period upon vesting and settlement of restricted stock units and performance-based share units previously granted to the Company's employees. These amounts were classified as "Distribution payable" on the Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015. The special cash distribution was funded from Climate Transaction proceeds.

Non-Controlling Interests

Non-controlling interests in the Visteon Corporation economic entity are as follows:

	March 31		December 31
	2016		2015
	(Dollars in Millions)
Yanfeng Visteon Automotive Electronics Co., Ltd. ("YFVE")	$	103	$	100
Shanghai Visteon Automotive Electronics, Co., Ltd.	42		41
Other	1		1
	$	146	$	142

Accumulated Other Comprehensive (Loss) Income

Changes in Accumulated other comprehensive (loss) income (“AOCI”) and reclassifications out of AOCI by component include:

	Three Months Ended March 31
	2016			2015
	(Dollars in Millions)
Changes in AOCI:
Beginning balance	$	(190	)	$	(299	)
Other comprehensive income (loss) before reclassification, net of tax	21			(39		)
Amounts reclassified from AOCI	(2		)	(3		)
Ending balance	$	(171	)	$	(341	)
Changes in AOCI by Component:
Foreign currency translation adjustments
Beginning balance	$	(155	)	$	(138	)
Other comprehensive income (loss) before reclassification, net of tax (a)	23			(68		)
Amounts reclassified from AOCI	—			1
Ending balance	(132		)	(205		)
Benefit plans
Beginning balance	(36		)	(156		)
Other comprehensive income before reclassification, net of tax (a)	—			15
Amounts reclassified from AOCI (b)	—			1
Ending balance	(36		)	(140		)
Unrealized hedging gain (loss)
Beginning balance	1			(5		)
Other comprehensive (loss) income before reclassification, net of tax (c)	(2		)	15
Amounts reclassified from AOCI (d)	(2		)	(6		)
Ending balance	(3		)	4
Total AOCI	$	(171	)	$	(341	)

(a) There were no income tax effects for the three month periods ending March 31, 2016 and 2015, due to the recording of valuation allowance.

(b) Amount included in the computation of net periodic pension cost. (See Note 11, "Employee Benefit Plans" for additional details.)

(c) Net tax benefit of $1 million and tax expense of $4 million are related to unrealized hedging gains for the three months ended March 31, 2016 and 2015, respectively.

(d) Amount is included in Cost of sales in consolidated statements of comprehensive income.

Stock Warrants

During the three months ended March 31, 2015, the Company received payments of $10 million related to approximately 164,000 warrants converted to shares of common stock at an exercise price of $58.80 per share.