Delaware
|
|
26-1531856
|
(State of incorporation)
|
|
(IRS Employer Identification Number)
|
3939 Technology Drive, Maumee, OH
|
|
43537
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
|
New York Stock Exchange
|
Large accelerated filer
þ
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Accelerated filer
o
|
|
Emerging growth company
o
|
|
|
Pages
|
PART I
|
|
|
Item 1
|
Business
|
|
Item 1A
|
Risk Factors
|
|
Item 1B
|
Unresolved Staff Comments
|
|
Item 2
|
Properties
|
|
Item 3
|
Legal Proceedings
|
|
|
|
|
PART II
|
|
|
Item 5
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
Item 6
|
Selected Financial Data
|
|
Item 7
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 7A
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
Item 8
|
Financial Statements and Supplementary Data
|
|
Item 9
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
|
Item 9A
|
Controls and Procedures
|
|
Item 9B
|
Other Information
|
|
|
|
|
PART III
|
|
|
Item 10
|
Directors, Executive Officers and Corporate Governance
|
|
Item 11
|
Executive Compensation
|
|
Item 12
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
|
Item 13
|
Certain Relationships and Related Transactions, and Director Independence
|
|
Item 14
|
Principal Accountant Fees and Services
|
|
|
|
|
PART IV
|
|
|
Item 15
|
Exhibits and Financial Statement Schedules
|
|
|
|
|
Signatures
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Dollars
|
|
% of Total
|
|
Dollars
|
|
% of Total
|
|
Dollars
|
|
% of Total
|
|||||||||
Light Vehicle
|
|
$
|
3,575
|
|
|
43.9
|
%
|
|
$
|
3,172
|
|
|
44.0
|
%
|
|
$
|
2,607
|
|
|
44.8
|
%
|
Commercial Vehicle
|
|
1,612
|
|
|
19.8
|
%
|
|
1,412
|
|
|
19.6
|
%
|
|
1,254
|
|
|
21.5
|
%
|
|||
Off-Highway
|
|
1,844
|
|
|
22.6
|
%
|
|
1,521
|
|
|
21.1
|
%
|
|
909
|
|
|
15.6
|
%
|
|||
Power Technologies
|
|
1,112
|
|
|
13.7
|
%
|
|
1,104
|
|
|
15.3
|
%
|
|
1,056
|
|
|
18.1
|
%
|
|||
Total
|
|
$
|
8,143
|
|
|
|
|
$
|
7,209
|
|
|
|
|
$
|
5,826
|
|
|
|
North America
|
Europe
|
South America
|
Asia Pacific
|
|
Canada
|
Belgium
|
Norway
|
Argentina
|
Australia
|
Mexico
|
Denmark
|
Russia
|
Brazil
|
China
|
United States
|
Finland
|
South Africa
|
Colombia
|
India
|
|
France
|
Spain
|
Ecuador
|
Japan
|
|
Germany
|
Sweden
|
|
New Zealand
|
|
Hungary
|
Switzerland
|
|
Singapore
|
|
Ireland
|
Turkey
|
|
South Korea
|
|
Italy
|
United Kingdom
|
|
Taiwan
|
|
Netherlands
|
|
|
Thailand
|
Segment
|
Principal Competitors
|
|
|
|
|
Light Vehicle
|
ZF Friedrichshafen AG
|
Wanxiang Group Corporation
|
|
GKN plc
|
IFA ROTORION Holding GmbH
|
|
American Axle & Manufacturing Holdings, Inc.
|
Vertically integrated OEM operations
|
|
Magna International Inc.
|
|
|
|
|
|
|
|
Commercial Vehicle
|
Meritor, Inc.
|
Klein Products Inc.
|
|
American Axle & Manufacturing Holdings, Inc.
|
Tirsan Kardan
|
|
Hendrickson (a Boler Company)
|
Vertically integrated OEM operations
|
|
|
|
|
|
|
Off-Highway
|
Carraro Group
|
Sew-Eurodrive
|
|
ZF Friedrichshafen AG
|
Siemens
|
|
Kessler + Co.
|
GKN plc
|
|
Comer Industries
|
Bosch Rexroth AG
|
|
Bonfiglioli
|
Danfoss
|
|
Oerlikon Fairfield
|
Vertically integrated OEM operations
|
|
Reggiana Riduttori
|
|
|
|
|
|
|
|
Power Technologies
|
ElringKlinger AG
|
Modine Manufacturing Company
|
|
Tenneco Inc.
|
Valeo Group
|
|
Freudenberg NOK Group
|
YinLun Co., LTD
|
|
MAHLE GmbH
|
Denso Corporation
|
|
|
|
Segment
|
|
Employees
|
|
Light Vehicle
|
|
12,200
|
|
Commercial Vehicle
|
|
6,300
|
|
Off-Highway
|
|
5,600
|
|
Power Technologies
|
|
5,400
|
|
Technical and administrative
|
|
1,400
|
|
Total
|
|
30,900
|
|
Type of Facility
|
|
North
America |
|
Europe
|
|
South
America |
|
Asia
Pacific |
|
Total
|
Light Vehicle
|
|
|
|
|
|
|
|
|
|
|
Manufacturing/Distribution
|
|
12
|
|
4
|
|
4
|
|
10
|
|
30
|
Service/Assembly
|
|
2
|
|
|
|
|
|
1
|
|
3
|
Administrative Offices
|
|
1
|
|
|
|
|
|
|
|
1
|
Technical and Engineering Centers
|
|
|
|
|
|
|
|
1
|
|
1
|
Commercial Vehicle
|
|
|
|
|
|
|
|
|
|
|
Manufacturing/Distribution
|
|
7
|
|
5
|
|
3
|
|
7
|
|
22
|
Service/Assembly
|
|
1
|
|
|
|
|
|
|
|
1
|
Technical and Engineering Centers
|
|
1
|
|
|
|
|
|
|
|
1
|
Off-Highway
|
|
|
|
|
|
|
|
|
|
|
Manufacturing/Distribution
|
|
2
|
|
13
|
|
|
|
2
|
|
17
|
Service/Assembly
|
|
3
|
|
17
|
|
1
|
|
7
|
|
28
|
Administrative Offices
|
|
|
|
1
|
|
|
|
1
|
|
2
|
Technical and Engineering Centers
|
|
|
|
1
|
|
|
|
|
|
1
|
Power Technologies
|
|
|
|
|
|
|
|
|
|
|
Manufacturing/Distribution
|
|
10
|
|
4
|
|
|
|
2
|
|
16
|
Technical and Engineering Centers
|
|
2
|
|
|
|
|
|
|
|
2
|
Corporate and other
|
|
|
|
|
|
|
|
|
|
|
Administrative Offices
|
|
3
|
|
1
|
|
1
|
|
3
|
|
8
|
Technical and Engineering Centers - Multiple Segments
|
|
|
|
|
|
|
|
2
|
|
2
|
|
|
44
|
|
46
|
|
9
|
|
36
|
|
135
|
|
12/31/2013
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
||||||||||||
Dana Incorporated
|
$
|
100.00
|
|
|
$
|
111.60
|
|
|
$
|
73.05
|
|
|
$
|
100.15
|
|
|
$
|
166.50
|
|
|
$
|
76.60
|
|
S&P 500
|
100.00
|
|
|
113.69
|
|
|
115.26
|
|
|
129.05
|
|
|
157.22
|
|
|
150.33
|
|
||||||
Dow Jones US Auto Parts Index
|
100.00
|
|
|
110.63
|
|
|
106.53
|
|
|
112.29
|
|
|
145.74
|
|
|
101.11
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Operating Results
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
8,143
|
|
|
$
|
7,209
|
|
|
$
|
5,826
|
|
|
$
|
6,060
|
|
|
$
|
6,617
|
|
Earnings from continuing operations before income taxes
|
|
494
|
|
|
380
|
|
|
215
|
|
|
292
|
|
|
260
|
|
|||||
Income from continuing operations
|
|
440
|
|
|
116
|
|
|
653
|
|
|
176
|
|
|
343
|
|
|||||
Income (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(15
|
)
|
|||||
Net income
|
|
440
|
|
|
116
|
|
|
653
|
|
|
180
|
|
|
328
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to the parent company
|
|
$
|
427
|
|
|
$
|
111
|
|
|
$
|
640
|
|
|
$
|
159
|
|
|
$
|
319
|
|
Redeemable noncontrolling interests adjustment to
redemption value |
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Preferred stock dividend requirements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Net income available to common stockholders
|
|
$
|
427
|
|
|
$
|
105
|
|
|
$
|
640
|
|
|
$
|
159
|
|
|
$
|
312
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share available to common stockholders
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
$
|
2.94
|
|
|
$
|
0.72
|
|
|
$
|
4.38
|
|
|
$
|
0.98
|
|
|
$
|
2.07
|
|
Income (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
(0.10
|
)
|
|||||
Net income
|
|
2.94
|
|
|
0.72
|
|
|
4.38
|
|
|
1.00
|
|
|
1.97
|
|
|||||
Diluted
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
$
|
2.91
|
|
|
$
|
0.71
|
|
|
$
|
4.36
|
|
|
$
|
0.97
|
|
|
$
|
1.93
|
|
Income (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
(0.09
|
)
|
|||||
Net income
|
|
2.91
|
|
|
0.71
|
|
|
4.36
|
|
|
0.99
|
|
|
1.84
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization of intangibles
|
|
$
|
270
|
|
|
$
|
233
|
|
|
$
|
182
|
|
|
$
|
174
|
|
|
$
|
213
|
|
Net cash provided by operating activities
|
|
568
|
|
|
554
|
|
|
384
|
|
|
406
|
|
|
510
|
|
|||||
Purchases of property, plant and equipment
|
|
325
|
|
|
393
|
|
|
322
|
|
|
260
|
|
|
234
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Position
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents and marketable securities
|
|
$
|
531
|
|
|
$
|
643
|
|
|
$
|
737
|
|
|
$
|
953
|
|
|
$
|
1,290
|
|
Total assets
|
|
5,918
|
|
|
5,644
|
|
|
4,860
|
|
|
4,301
|
|
|
4,893
|
|
|||||
Long-term debt, less debt issuance costs
|
|
1,755
|
|
|
1,759
|
|
|
1,595
|
|
|
1,553
|
|
|
1,588
|
|
|||||
Total debt
|
|
1,783
|
|
|
1,799
|
|
|
1,664
|
|
|
1,575
|
|
|
1,653
|
|
|||||
Common stock and additional paid-in capital
|
|
2,370
|
|
|
2,356
|
|
|
2,329
|
|
|
2,313
|
|
|
2,642
|
|
|||||
Treasury stock
|
|
(119
|
)
|
|
(87
|
)
|
|
(83
|
)
|
|
(1
|
)
|
|
(33
|
)
|
|||||
Total parent company stockholders' equity
|
|
1,345
|
|
|
1,013
|
|
|
1,157
|
|
|
728
|
|
|
1,080
|
|
|||||
Book value per share
|
|
$
|
9.27
|
|
|
$
|
6.98
|
|
|
$
|
7.92
|
|
|
$
|
4.58
|
|
|
$
|
6.83
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Share Information
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends declared per common share
|
|
$
|
0.40
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.23
|
|
|
$
|
0.20
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
145.0
|
|
|
145.1
|
|
|
146.0
|
|
|
159.0
|
|
|
158.0
|
|
|||||
Diluted
|
|
146.5
|
|
|
146.9
|
|
|
146.8
|
|
|
160.0
|
|
|
173.5
|
|
|
|
|
|
|
Actual
|
||||||||
(Units in thousands)
|
Dana 2019 Outlook
|
|
2018
|
|
2017
|
|
2016
|
||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light Truck (Full Frame)
|
4,275
|
|
to
|
4,575
|
|
4,493
|
|
|
4,331
|
|
|
4,220
|
|
Light Vehicle Engines
|
14,700
|
|
to
|
15,000
|
|
15,332
|
|
|
14,828
|
|
|
15,913
|
|
Medium Truck (Classes 5-7)
|
255
|
|
to
|
265
|
|
270
|
|
|
246
|
|
|
233
|
|
Heavy Truck (Class 8)
|
325
|
|
to
|
345
|
|
320
|
|
|
255
|
|
|
228
|
|
Agricultural Equipment
|
50
|
|
to
|
60
|
|
56
|
|
|
54
|
|
|
53
|
|
Construction/Mining Equipment
|
175
|
|
to
|
185
|
|
176
|
|
|
157
|
|
|
150
|
|
Europe (including Eastern Europe)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light Truck
|
11,200
|
|
to
|
11,500
|
|
10,727
|
|
|
10,276
|
|
|
9,306
|
|
Light Vehicle Engines
|
23,700
|
|
to
|
24,200
|
|
23,098
|
|
|
24,096
|
|
|
23,287
|
|
Medium/Heavy Truck
|
505
|
|
to
|
520
|
|
506
|
|
|
486
|
|
|
463
|
|
Agricultural Equipment
|
200
|
|
to
|
215
|
|
204
|
|
|
202
|
|
|
193
|
|
Construction/Mining Equipment
|
350
|
|
to
|
370
|
|
351
|
|
|
309
|
|
|
290
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light Truck
|
1,300
|
|
to
|
1,500
|
|
1,320
|
|
|
1,235
|
|
|
980
|
|
Light Vehicle Engines
|
3,000
|
|
to
|
3,100
|
|
2,797
|
|
|
2,412
|
|
|
2,112
|
|
Medium/Heavy Truck
|
105
|
|
to
|
115
|
|
113
|
|
|
89
|
|
|
70
|
|
Agricultural Equipment
|
30
|
|
to
|
35
|
|
34
|
|
|
33
|
|
|
29
|
|
Construction/Mining Equipment
|
8
|
|
to
|
12
|
|
9
|
|
|
9
|
|
|
10
|
|
Asia-Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light Truck
|
30,800
|
|
to
|
32,000
|
|
29,783
|
|
|
29,495
|
|
|
27,465
|
|
Light Vehicle Engines
|
54,700
|
|
to
|
55,700
|
|
52,293
|
|
|
52,543
|
|
|
50,533
|
|
Medium/Heavy Truck
|
1,700
|
|
to
|
1,900
|
|
2,004
|
|
|
2,039
|
|
|
1,661
|
|
Agricultural Equipment
|
650
|
|
to
|
680
|
|
653
|
|
|
653
|
|
|
648
|
|
Construction/Mining Equipment
|
490
|
|
to
|
510
|
|
495
|
|
|
441
|
|
|
396
|
|
|
2019
Outlook* |
|
2018
|
|
2017
|
|
2016
|
||||||
Sales
|
$8,950 - $9,350
|
|
$
|
8,143
|
|
|
$
|
7,209
|
|
|
$
|
5,826
|
|
Adjusted EBITDA
|
$1,085 - $1,165
|
|
$
|
957
|
|
|
$
|
835
|
|
|
$
|
660
|
|
Net cash provided by operating activities
|
~5.5% of Sales
|
|
$
|
568
|
|
|
$
|
554
|
|
|
$
|
384
|
|
Discretionary pension contribution
|
~1.5% of Sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Purchases of property, plant and equipment
|
~4% of Sales
|
|
$
|
325
|
|
|
$
|
393
|
|
|
$
|
322
|
|
Adjusted Free Cash Flow
|
~3% of Sales
|
|
$
|
243
|
|
|
$
|
161
|
|
|
$
|
62
|
|
*
|
Assumes Oerlikon Drive Systems acquisition transaction closes during the first quarter of 2019.
|
|
2018
|
|
2017
|
|
|
||||||||||||
|
Dollars
|
|
% of
Net Sales |
|
Dollars
|
|
% of
Net Sales |
|
Increase/
(Decrease) |
||||||||
Net sales
|
$
|
8,143
|
|
|
|
|
$
|
7,209
|
|
|
|
|
$
|
934
|
|
||
Cost of sales
|
6,986
|
|
|
85.8
|
%
|
|
6,143
|
|
|
85.2
|
%
|
|
843
|
|
|||
Gross margin
|
1,157
|
|
|
14.2
|
%
|
|
1,066
|
|
|
14.8
|
%
|
|
91
|
|
|||
Selling, general and administrative expenses
|
499
|
|
|
6.1
|
%
|
|
508
|
|
|
7.0
|
%
|
|
(9
|
)
|
|||
Amortization of intangibles
|
8
|
|
|
|
|
11
|
|
|
|
|
(3
|
)
|
|||||
Restructuring charges, net
|
25
|
|
|
|
|
14
|
|
|
|
|
11
|
|
|||||
Impairment of indefinite-lived intangible asset
|
(20
|
)
|
|
|
|
|
|
|
|
|
(20
|
)
|
|||||
Gain (loss) on disposal group held for sale
|
3
|
|
|
|
|
(27
|
)
|
|
|
|
30
|
|
|||||
Other expense, net
|
(29
|
)
|
|
|
|
(16
|
)
|
|
|
|
(13
|
)
|
|||||
Earnings before interest and income taxes
|
579
|
|
|
|
|
490
|
|
|
|
|
89
|
|
|||||
Loss on extinguishment of debt
|
|
|
|
|
|
(19
|
)
|
|
|
|
19
|
|
|||||
Interest income
|
11
|
|
|
|
|
11
|
|
|
|
|
—
|
|
|||||
Interest expense
|
96
|
|
|
|
|
102
|
|
|
|
|
(6
|
)
|
|||||
Earnings before income taxes
|
494
|
|
|
|
|
380
|
|
|
|
|
114
|
|
|||||
Income tax expense
|
78
|
|
|
|
|
283
|
|
|
|
|
(205
|
)
|
|||||
Equity in earnings of affiliates
|
24
|
|
|
|
|
19
|
|
|
|
|
5
|
|
|||||
Net income
|
440
|
|
|
|
|
116
|
|
|
|
|
324
|
|
|||||
Less: Noncontrolling interests net income
|
13
|
|
|
|
|
10
|
|
|
|
|
3
|
|
|||||
Less: Redeemable noncontrolling interests net loss
|
|
|
|
|
(5
|
)
|
|
|
|
5
|
|
||||||
Net income attributable to the parent company
|
$
|
427
|
|
|
|
|
$
|
111
|
|
|
|
|
$
|
316
|
|
|
|
|
|
|
|
|
Amount of Change Due To
|
||||||||||||||||
|
2018
|
|
2017
|
|
Increase/
(Decrease) |
|
Currency
Effects |
|
Acquisitions
(Divestitures) |
|
Organic
Change |
||||||||||||
North America
|
$
|
4,106
|
|
|
$
|
3,688
|
|
|
$
|
418
|
|
|
$
|
(1
|
)
|
|
$
|
32
|
|
|
$
|
387
|
|
Europe
|
2,484
|
|
|
2,154
|
|
|
330
|
|
|
85
|
|
|
27
|
|
|
218
|
|
||||||
South America
|
546
|
|
|
500
|
|
|
46
|
|
|
(74
|
)
|
|
(9
|
)
|
|
129
|
|
||||||
Asia Pacific
|
1,007
|
|
|
867
|
|
|
140
|
|
|
6
|
|
|
7
|
|
|
127
|
|
||||||
Total
|
$
|
8,143
|
|
|
$
|
7,209
|
|
|
$
|
934
|
|
|
$
|
16
|
|
|
$
|
57
|
|
|
$
|
861
|
|
|
2018
|
|
2017
|
||||
Non-service cost components of pension and OPEB costs
|
$
|
(15
|
)
|
|
$
|
(7
|
)
|
Government grants and incentives
|
12
|
|
|
7
|
|
||
Foreign exchange loss
|
(12
|
)
|
|
(3
|
)
|
||
Strategic transaction expenses, net of transaction breakup fee income
|
(18
|
)
|
|
(25
|
)
|
||
Amounts attributable to previously divested/closed operations
|
|
|
|
3
|
|
||
Other, net
|
4
|
|
|
9
|
|
||
Other expense, net
|
(29
|
)
|
|
(16
|
)
|
|
|
Sales
|
|
Segment
EBITDA |
|
Segment
EBITDA Margin |
|||||
2017
|
|
$
|
3,172
|
|
|
$
|
359
|
|
|
11.3
|
%
|
Volume and mix
|
|
376
|
|
|
83
|
|
|
|
|||
Performance
|
|
36
|
|
|
(43
|
)
|
|
|
|||
Currency effects
|
|
(9
|
)
|
|
(1
|
)
|
|
|
|||
2018
|
|
$
|
3,575
|
|
|
$
|
398
|
|
|
11.1
|
%
|
|
|
Sales
|
|
Segment
EBITDA |
|
Segment
EBITDA Margin |
|||||
2017
|
|
$
|
1,412
|
|
|
$
|
116
|
|
|
8.2
|
%
|
Volume and mix
|
|
219
|
|
|
35
|
|
|
|
|||
Performance
|
|
20
|
|
|
(1
|
)
|
|
|
|||
Currency effects
|
|
(39
|
)
|
|
(4
|
)
|
|
|
|||
2018
|
|
$
|
1,612
|
|
|
$
|
146
|
|
|
9.1
|
%
|
|
|
Sales
|
|
Segment
EBITDA |
|
Segment
EBITDA Margin |
|||||
2017
|
|
$
|
1,521
|
|
|
$
|
212
|
|
|
13.9
|
%
|
Volume and mix
|
|
251
|
|
|
57
|
|
|
|
|||
Performance
|
|
26
|
|
|
11
|
|
|
|
|||
Currency effects
|
|
46
|
|
|
5
|
|
|
|
|||
2018
|
|
$
|
1,844
|
|
|
$
|
285
|
|
|
15.5
|
%
|
|
|
Sales
|
|
Segment
EBITDA |
|
Segment
EBITDA Margin |
|||||
2017
|
|
$
|
1,104
|
|
|
$
|
168
|
|
|
15.2
|
%
|
Volume and mix
|
|
(8
|
)
|
|
(3
|
)
|
|
|
|||
Performance
|
|
(2
|
)
|
|
(18
|
)
|
|
|
|||
Currency effects
|
|
18
|
|
|
2
|
|
|
|
|||
2018
|
|
$
|
1,112
|
|
|
$
|
149
|
|
|
13.4
|
%
|
|
2017
|
|
2016
|
|
|
||||||||||||
|
Dollars
|
|
% of
Net Sales |
|
Dollars
|
|
% of
Net Sales |
|
Increase/
(Decrease) |
||||||||
Net sales
|
$
|
7,209
|
|
|
|
|
$
|
5,826
|
|
|
|
|
$
|
1,383
|
|
||
Cost of sales
|
6,143
|
|
|
85.2
|
%
|
|
4,991
|
|
|
85.7
|
%
|
|
1,152
|
|
|||
Gross margin
|
1,066
|
|
|
14.8
|
%
|
|
835
|
|
|
14.3
|
%
|
|
231
|
|
|||
Selling, general and administrative expenses
|
508
|
|
|
7.0
|
%
|
|
401
|
|
|
6.9
|
%
|
|
107
|
|
|||
Amortization of intangibles
|
11
|
|
|
|
|
8
|
|
|
|
|
3
|
|
|||||
Restructuring charges, net
|
14
|
|
|
|
|
36
|
|
|
|
|
(22
|
)
|
|||||
Loss on disposal group held for sale
|
(27
|
)
|
|
|
|
|
|
|
|
|
(27
|
)
|
|||||
Loss on sale of subsidiaries
|
|
|
|
|
|
(80
|
)
|
|
|
|
80
|
|
|||||
Other income (expense), net
|
(16
|
)
|
|
|
|
22
|
|
|
|
|
(38
|
)
|
|||||
Earnings before interest and income taxes
|
490
|
|
|
|
|
332
|
|
|
|
|
158
|
|
|||||
Loss on extinguishment of debt
|
(19
|
)
|
|
|
|
(17
|
)
|
|
|
|
(2
|
)
|
|||||
Interest income
|
11
|
|
|
|
|
13
|
|
|
|
|
(2
|
)
|
|||||
Interest expense
|
102
|
|
|
|
|
113
|
|
|
|
|
(11
|
)
|
|||||
Earnings before income taxes
|
380
|
|
|
|
|
215
|
|
|
|
|
165
|
|
|||||
Income tax expense (benefit)
|
283
|
|
|
|
|
(424
|
)
|
|
|
|
707
|
|
|||||
Equity in earnings of affiliates
|
19
|
|
|
|
|
14
|
|
|
|
|
5
|
|
|||||
Net income
|
116
|
|
|
|
|
653
|
|
|
|
|
(537
|
)
|
|||||
Less: Noncontrolling interests net income
|
10
|
|
|
|
|
13
|
|
|
|
|
(3
|
)
|
|||||
Less: Redeemable noncontrolling interests net loss
|
(5
|
)
|
|
|
|
|
|
|
|
|
(5
|
)
|
|||||
Net income attributable to the parent company
|
$
|
111
|
|
|
|
|
$
|
640
|
|
|
|
|
$
|
(529
|
)
|
|
|
|
|
|
|
|
Amount of Change Due To
|
||||||||||||||||
|
2017
|
|
2016
|
|
Increase/
(Decrease) |
|
Currency
Effects |
|
Acquisitions
(Divestitures) |
|
Organic
Change |
||||||||||||
North America
|
$
|
3,688
|
|
|
$
|
3,128
|
|
|
$
|
560
|
|
|
$
|
(1
|
)
|
|
$
|
127
|
|
|
$
|
434
|
|
Europe
|
2,154
|
|
|
1,616
|
|
|
538
|
|
|
35
|
|
|
294
|
|
|
209
|
|
||||||
South America
|
500
|
|
|
338
|
|
|
162
|
|
|
3
|
|
|
54
|
|
|
105
|
|
||||||
Asia Pacific
|
867
|
|
|
744
|
|
|
123
|
|
|
17
|
|
|
25
|
|
|
81
|
|
||||||
Total
|
$
|
7,209
|
|
|
$
|
5,826
|
|
|
$
|
1,383
|
|
|
$
|
54
|
|
|
$
|
500
|
|
|
$
|
829
|
|
|
2017
|
|
2016
|
||||
Non-service cost components of pension and OPEB costs
|
$
|
(7
|
)
|
|
$
|
4
|
|
Government grants and incentives
|
7
|
|
|
8
|
|
||
Foreign exchange loss
|
(3
|
)
|
|
(3
|
)
|
||
Strategic transaction expenses
|
(25
|
)
|
|
(13
|
)
|
||
Insurance and other recoveries
|
|
|
|
10
|
|
||
Gain on sale of marketable securities
|
|
|
|
7
|
|
||
Amounts attributable to previously divested/closed operations
|
3
|
|
|
|
|
||
Other, net
|
9
|
|
|
9
|
|
||
Other income (expense), net
|
(16
|
)
|
|
22
|
|
|
Sales
|
|
Segment
EBITDA
|
|
Segment
EBITDA
Margin
|
|||||
2016
|
$
|
2,607
|
|
|
$
|
279
|
|
|
10.7
|
%
|
Volume and mix
|
452
|
|
|
92
|
|
|
|
|||
Acquisition
|
96
|
|
|
12
|
|
|
|
|||
Performance
|
14
|
|
|
(22
|
)
|
|
|
|||
Currency effects
|
3
|
|
|
(2
|
)
|
|
|
|||
2017
|
$
|
3,172
|
|
|
$
|
359
|
|
|
11.3
|
%
|
|
Sales
|
|
Segment
EBITDA
|
|
Segment
EBITDA
Margin
|
|||||
2016
|
$
|
1,254
|
|
|
$
|
96
|
|
|
7.7
|
%
|
Volume and mix
|
81
|
|
|
20
|
|
|
|
|||
Acquisition
|
44
|
|
|
1
|
|
|
|
|||
Performance
|
12
|
|
|
6
|
|
|
|
|||
Currency effects
|
21
|
|
|
(7
|
)
|
|
|
|||
2017
|
$
|
1,412
|
|
|
$
|
116
|
|
|
8.2
|
%
|
|
Sales
|
|
Segment
EBITDA
|
|
Segment
EBITDA
Margin
|
|||||
2016
|
$
|
909
|
|
|
$
|
129
|
|
|
14.2
|
%
|
Volume and mix
|
202
|
|
|
41
|
|
|
|
|||
Acquisition
|
401
|
|
|
40
|
|
|
|
|||
Performance
|
(10
|
)
|
|
(1
|
)
|
|
|
|||
Currency effects
|
19
|
|
|
3
|
|
|
|
|||
2017
|
$
|
1,521
|
|
|
$
|
212
|
|
|
13.9
|
%
|
|
Sales
|
|
Segment
EBITDA
|
|
Segment
EBITDA
Margin
|
|||||
2016
|
$
|
1,056
|
|
|
$
|
158
|
|
|
15.0
|
%
|
Volume and mix
|
83
|
|
|
26
|
|
|
|
|||
Divestiture
|
(41
|
)
|
|
(5
|
)
|
|
|
|||
Performance
|
(5
|
)
|
|
(12
|
)
|
|
|
|||
Currency effects
|
11
|
|
|
1
|
|
|
|
|||
2017
|
$
|
1,104
|
|
|
$
|
168
|
|
|
15.2
|
%
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
440
|
|
|
$
|
116
|
|
|
$
|
653
|
|
Equity in earnings of affiliates
|
24
|
|
|
19
|
|
|
14
|
|
|||
Income tax expense (benefit)
|
78
|
|
|
283
|
|
|
(424
|
)
|
|||
Earnings before income taxes
|
494
|
|
|
380
|
|
|
215
|
|
|||
Depreciation and amortization
|
270
|
|
|
233
|
|
|
182
|
|
|||
Restructuring charges, net
|
25
|
|
|
14
|
|
|
36
|
|
|||
Interest expense, net
|
85
|
|
|
91
|
|
|
100
|
|
|||
Other*
|
83
|
|
|
117
|
|
|
127
|
|
|||
Adjusted EBITDA
|
$
|
957
|
|
|
$
|
835
|
|
|
$
|
660
|
|
*
|
Other includes stock compensation expense, non-service cost components of pension and OPEB costs, strategic transaction expenses, net of transaction breakup fees, acquisition related inventory adjustments, impairment of indefinite-lived intangible asset, loss on extinguishment of debt, loss on sale of subsidiaries and other items. See
Note 21
to our consolidated financial statements in Item 8 for additional details. Non-service cost components of pension and OPEB costs were excluded from adjusted EBITDA in 2018 concurrent with adoption of ASU 2017-07 which required such cost to be classified outside of operating income. While prior period amounts have been reclassified on our consolidated statement of operations for U.S. GAAP reporting purposes, we did not adjust prior period adjusted EBITDA on the basis of materiality. Had we conformed adjusted EBITDA for 2017 and 2016, adjusted EBITDA would have been $842 and $656, respectively.
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net cash provided by operating activities
|
$
|
568
|
|
|
$
|
554
|
|
|
$
|
384
|
|
Purchases of property, plant and equipment
|
(325
|
)
|
|
(393
|
)
|
|
(322
|
)
|
|||
Free cash flow
|
243
|
|
|
161
|
|
|
62
|
|
|||
Discretionary pension contribution
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjusted free cash flow
|
$
|
243
|
|
|
$
|
161
|
|
|
$
|
62
|
|
Cash and cash equivalents
|
$
|
510
|
|
Less: Deposits supporting obligations
|
(5
|
)
|
|
Available cash
|
505
|
|
|
Additional cash availability from Revolving Facility
|
579
|
|
|
Marketable securities
|
21
|
|
|
Total liquidity
|
$
|
1,105
|
|
|
U.S.
|
|
Non-U.S.
|
|
Total
|
||||||
Cash and cash equivalents
|
$
|
175
|
|
|
$
|
201
|
|
|
$
|
376
|
|
Cash and cash equivalents held as deposits
|
|
|
5
|
|
|
5
|
|
||||
Cash and cash equivalents held at less than wholly-owned subsidiaries
|
3
|
|
|
126
|
|
|
129
|
|
|||
Consolidated cash balance
|
$
|
178
|
|
|
$
|
332
|
|
|
$
|
510
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash used for changes in working capital
|
$
|
(113
|
)
|
|
$
|
(8
|
)
|
|
$
|
(51
|
)
|
Other cash provided by operations
|
681
|
|
|
562
|
|
|
435
|
|
|||
Net cash provided by operating activities
|
568
|
|
|
554
|
|
|
384
|
|
|||
Net cash used in investing activities
|
(462
|
)
|
|
(583
|
)
|
|
(365
|
)
|
|||
Net cash used in financing activities
|
(180
|
)
|
|
(120
|
)
|
|
(88
|
)
|
|||
Net decrease in cash, cash equivalents and restricted cash
|
$
|
(74
|
)
|
|
$
|
(149
|
)
|
|
$
|
(69
|
)
|
|
|
|
|
Payments Due by Period
|
||||||||||||||||
Contractual Cash Obligations
|
|
Total
|
|
2019
|
|
2020 - 2021
|
|
2022 - 2023
|
|
After 2023
|
||||||||||
Long-term debt
(1)
|
|
$
|
1,788
|
|
|
$
|
20
|
|
|
$
|
38
|
|
|
$
|
517
|
|
|
$
|
1,213
|
|
Interest payments
(2)
|
|
591
|
|
|
98
|
|
|
193
|
|
|
182
|
|
|
118
|
|
|||||
Leases
(3)
|
|
245
|
|
|
57
|
|
|
76
|
|
|
48
|
|
|
64
|
|
|||||
Unconditional purchase obligations
(4)
|
|
138
|
|
|
135
|
|
|
2
|
|
|
1
|
|
|
|
||||||
Pension contribution
(5)
|
|
16
|
|
|
16
|
|
|
|
|
|
|
|
||||||||
Retiree health care benefits
(6)
|
|
83
|
|
|
5
|
|
|
10
|
|
|
10
|
|
|
58
|
|
|||||
Uncertain income tax positions
(7)
|
|
—
|
|
|
|
|
|
|
|
|
|
|||||||||
Acquisition pending regulatory approval
(8)
|
|
635
|
|
|
635
|
|
|
|
|
|
|
|
||||||||
Total contractual cash obligations
|
|
$
|
3,496
|
|
|
$
|
966
|
|
|
$
|
319
|
|
|
$
|
758
|
|
|
$
|
1,453
|
|
(1)
|
Principal payments on long-term debt and capital lease obligations in place at
December 31, 2018
.
|
(2)
|
Interest payments are based on long-term debt and capital leases in place at
December 31, 2018
and the interest rates applicable to such obligations.
|
(3)
|
Operating leases related to real estate, manufacturing and material handling equipment, vehicles and other assets.
|
(4)
|
Unconditional purchase obligations are comprised of commitments for the procurement of fixed assets, the purchase of raw materials and the fulfillment of other contractual obligations.
|
(5)
|
This amount represents estimated
2019
minimum required contributions to our global defined benefit pension plans. We have not estimated pension contributions beyond
2019
due to the significant impact that return on plan assets and changes in discount rates might have on such amounts.
|
(6)
|
This amount represents estimated payments under our non-U.S. retiree health care programs. Obligations under the non-U.S. retiree health care programs are not fixed commitments and will vary depending on various factors, including the level of participant utilization and inflation. Our estimates of the payments to be made in the future consider recent payment trends and certain of our actuarial assumptions.
|
(7)
|
We are not able to reasonably estimate the timing of payments related to uncertain tax positions because the timing of settlement is uncertain. The above table does not reflect unrecognized tax benefits at
December 31, 2018
of $107. See
Note 18
to our consolidated financial statements in Item 8 for additional discussion.
|
(8)
|
On July 30, 2018, we entered into a definitive agreement to purchase Oerlikon Drive Systems. Subject to customary regulatory approvals, the acquisition is expected to close in the first quarter of 2019. The amount presented has not been reduced by the amount of cash and cash equivalents expected to be on Oerlikon Drive Systems' balance sheet on the date of acquisition.
|
|
10% Increase
in Rates
Gain (Loss)
|
|
10% Decrease
in Rates
Gain (Loss)
|
||||
Foreign currency rate sensitivity:
|
|
|
|
|
|
||
Currency swaps
|
$
|
(127
|
)
|
|
$
|
113
|
|
Forward contracts
|
$
|
(17
|
)
|
|
$
|
20
|
|
/s/ PricewaterhouseCoopers LLP
|
|
Toledo, Ohio
|
|
February 15, 2019
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net sales
|
$
|
8,143
|
|
|
$
|
7,209
|
|
|
$
|
5,826
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|||
Cost of sales
|
6,986
|
|
|
6,143
|
|
|
4,991
|
|
|||
Selling, general and administrative expenses
|
499
|
|
|
508
|
|
|
401
|
|
|||
Amortization of intangibles
|
8
|
|
|
11
|
|
|
8
|
|
|||
Restructuring charges, net
|
25
|
|
|
14
|
|
|
36
|
|
|||
Impairment of indefinite-lived intangible asset
|
(20
|
)
|
|
|
|
|
|
|
|||
Gain (loss) on disposal group held for sale
|
3
|
|
|
(27
|
)
|
|
|
||||
Loss on sale of subsidiaries
|
|
|
|
|
|
|
(80
|
)
|
|||
Other income (expense), net
|
(29
|
)
|
|
(16
|
)
|
|
22
|
|
|||
Earnings before interest and income taxes
|
579
|
|
|
490
|
|
|
332
|
|
|||
Loss on extinguishment of debt
|
|
|
|
(19
|
)
|
|
(17
|
)
|
|||
Interest income
|
11
|
|
|
11
|
|
|
13
|
|
|||
Interest expense
|
96
|
|
|
102
|
|
|
113
|
|
|||
Earnings before income taxes
|
494
|
|
|
380
|
|
|
215
|
|
|||
Income tax expense (benefit)
|
78
|
|
|
283
|
|
|
(424
|
)
|
|||
Equity in earnings of affiliates
|
24
|
|
|
19
|
|
|
14
|
|
|||
Net income
|
440
|
|
|
116
|
|
|
653
|
|
|||
Less: Noncontrolling interests net income
|
13
|
|
|
10
|
|
|
13
|
|
|||
Less: Redeemable noncontrolling interests net loss
|
|
|
|
(5
|
)
|
|
|
|
|||
Net income attributable to the parent company
|
$
|
427
|
|
|
$
|
111
|
|
|
$
|
640
|
|
|
|
|
|
|
|
||||||
Net income per share available to common stockholders
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
2.94
|
|
|
$
|
0.72
|
|
|
$
|
4.38
|
|
Diluted
|
$
|
2.91
|
|
|
$
|
0.71
|
|
|
$
|
4.36
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
|
|||
Basic
|
145.0
|
|
|
145.1
|
|
|
146.0
|
|
|||
Diluted
|
146.5
|
|
|
146.9
|
|
|
146.8
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
440
|
|
|
$
|
116
|
|
|
$
|
653
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|||
Currency translation adjustments
|
(63
|
)
|
|
(14
|
)
|
|
(41
|
)
|
|||
Hedging gains and losses
|
10
|
|
|
(30
|
)
|
|
(30
|
)
|
|||
Investment and other gains and losses
|
|
|
|
2
|
|
|
(2
|
)
|
|||
Defined benefit plans
|
23
|
|
|
(6
|
)
|
|
(39
|
)
|
|||
Other comprehensive loss
|
(30
|
)
|
|
(48
|
)
|
|
(112
|
)
|
|||
Total comprehensive income
|
410
|
|
|
68
|
|
|
541
|
|
|||
Less: Comprehensive income attributable to noncontrolling interests
|
(7
|
)
|
|
(17
|
)
|
|
(11
|
)
|
|||
Less: Comprehensive loss attributable to redeemable noncontrolling interests
|
6
|
|
|
2
|
|
|
|
|
|||
Comprehensive income attributable to the parent company
|
$
|
409
|
|
|
$
|
53
|
|
|
$
|
530
|
|
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
510
|
|
|
$
|
603
|
|
Marketable securities
|
21
|
|
|
40
|
|
||
Accounts receivable
|
|
|
|
|
|
||
Trade, less allowance for doubtful accounts of $9 in 2018 and $8 in 2017
|
1,065
|
|
|
994
|
|
||
Other
|
178
|
|
|
172
|
|
||
Inventories
|
1,031
|
|
|
969
|
|
||
Other current assets
|
102
|
|
|
97
|
|
||
Current assets of disposal group held for sale
|
|
|
|
7
|
|
||
Total current assets
|
2,907
|
|
|
2,882
|
|
||
Goodwill
|
264
|
|
|
127
|
|
||
Intangibles
|
164
|
|
|
174
|
|
||
Deferred tax assets
|
445
|
|
|
420
|
|
||
Other noncurrent assets
|
80
|
|
|
71
|
|
||
Investments in affiliates
|
208
|
|
|
163
|
|
||
Property, plant and equipment, net
|
1,850
|
|
|
1,807
|
|
||
Total assets
|
$
|
5,918
|
|
|
$
|
5,644
|
|
|
|
|
|
||||
Liabilities and equity
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
||
Short-term debt
|
$
|
8
|
|
|
$
|
17
|
|
Current portion of long-term debt
|
20
|
|
|
23
|
|
||
Accounts payable
|
1,217
|
|
|
1,165
|
|
||
Accrued payroll and employee benefits
|
186
|
|
|
219
|
|
||
Taxes on income
|
47
|
|
|
53
|
|
||
Other accrued liabilities
|
269
|
|
|
220
|
|
||
Current liabilities of disposal group held for sale
|
|
|
|
5
|
|
||
Total current liabilities
|
1,747
|
|
|
1,702
|
|
||
Long-term debt, less debt issuance costs of $18 in 2018 and $22 in 2017
|
1,755
|
|
|
1,759
|
|
||
Pension and postretirement obligations
|
561
|
|
|
607
|
|
||
Other noncurrent liabilities
|
313
|
|
|
413
|
|
||
Noncurrent liabilities of disposal group held for sale
|
|
|
|
2
|
|
||
Total liabilities
|
4,376
|
|
|
4,483
|
|
||
Commitments and contingencies (Note 16)
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
100
|
|
|
47
|
|
||
Parent company stockholders' equity
|
|
|
|
|
|
||
Preferred stock, 50,000,000 shares authorized, $0.01 par value, no shares outstanding
|
—
|
|
|
—
|
|
||
Common stock, 450,000,000 shares authorized, $0.01 par value, 144,663,403 and 144,984,050 shares outstanding
|
2
|
|
|
2
|
|
||
Additional paid-in capital
|
2,368
|
|
|
2,354
|
|
||
Retained earnings
|
456
|
|
|
86
|
|
||
Treasury stock, at cost (8,342,185 and 7,001,017 shares)
|
(119
|
)
|
|
(87
|
)
|
||
Accumulated other comprehensive loss
|
(1,362
|
)
|
|
(1,342
|
)
|
||
Total parent company stockholders' equity
|
1,345
|
|
|
1,013
|
|
||
Noncontrolling interests
|
97
|
|
|
101
|
|
||
Total equity
|
1,442
|
|
|
1,114
|
|
||
Total liabilities and equity
|
$
|
5,918
|
|
|
$
|
5,644
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
440
|
|
|
$
|
116
|
|
|
$
|
653
|
|
Depreciation
|
260
|
|
|
220
|
|
|
173
|
|
|||
Amortization of intangibles
|
10
|
|
|
13
|
|
|
9
|
|
|||
Amortization of deferred financing charges
|
4
|
|
|
5
|
|
|
5
|
|
|||
Call premium on debt
|
|
|
|
15
|
|
|
12
|
|
|||
Write-off of deferred financing costs
|
|
|
|
4
|
|
|
5
|
|
|||
Earnings of affiliates, net of dividends received
|
(4
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|||
Stock compensation expense
|
16
|
|
|
23
|
|
|
17
|
|
|||
Deferred income taxes
|
(64
|
)
|
|
179
|
|
|
(480
|
)
|
|||
Pension contributions, net
|
3
|
|
|
(6
|
)
|
|
(16
|
)
|
|||
Impairment of indefinite-lived intangible asset
|
20
|
|
|
|
|
|
|||||
(Gain) loss on sale of subsidiaries
|
|
|
|
(3
|
)
|
|
80
|
|
|||
(Gain) loss on disposal group held for sale
|
(2
|
)
|
|
27
|
|
|
|
|
|||
Change in working capital
|
(113
|
)
|
|
(8
|
)
|
|
(51
|
)
|
|||
Change in other noncurrent assets and liabilities
|
(12
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|||
Other, net
|
10
|
|
|
(19
|
)
|
|
(19
|
)
|
|||
Net cash provided by operating activities
|
568
|
|
|
554
|
|
|
384
|
|
|||
Investing activities
|
|
|
|
|
|
|
|
|
|||
Purchases of property, plant and equipment
|
(325
|
)
|
|
(393
|
)
|
|
(322
|
)
|
|||
Acquisition of businesses, net of cash acquired
|
(153
|
)
|
|
(185
|
)
|
|
(78
|
)
|
|||
Proceeds from previous acquisition
|
9
|
|
|
|
|
|
|||||
Purchases of marketable securities
|
(37
|
)
|
|
(35
|
)
|
|
(93
|
)
|
|||
Proceeds from sales of marketable securities
|
15
|
|
|
1
|
|
|
47
|
|
|||
Proceeds from maturities of marketable securities
|
37
|
|
|
27
|
|
|
47
|
|
|||
Proceeds from sale of subsidiaries, net of cash disposed
|
(6
|
)
|
|
3
|
|
|
34
|
|
|||
Other, net
|
(2
|
)
|
|
(1
|
)
|
|
|
|
|||
Net cash used in investing activities
|
(462
|
)
|
|
(583
|
)
|
|
(365
|
)
|
|||
Financing activities
|
|
|
|
|
|
|
|
|
|||
Net change in short-term debt
|
(21
|
)
|
|
(90
|
)
|
|
9
|
|
|||
Proceeds from long-term debt
|
|
|
|
676
|
|
|
441
|
|
|||
Repayment of long-term debt
|
(13
|
)
|
|
(640
|
)
|
|
(382
|
)
|
|||
Call premium on debt
|
|
|
|
(15
|
)
|
|
(12
|
)
|
|||
Deferred financing payments
|
(1
|
)
|
|
(9
|
)
|
|
(11
|
)
|
|||
Dividends paid to common stockholders
|
(58
|
)
|
|
(35
|
)
|
|
(35
|
)
|
|||
Distributions to noncontrolling interests
|
(42
|
)
|
|
(12
|
)
|
|
(17
|
)
|
|||
Contributions from noncontrolling interests
|
25
|
|
|
|
|
|
|||||
Payments to acquire redeemable noncontrolling interests
|
(43
|
)
|
|
|
|
|
|||||
Repurchases of common stock
|
(25
|
)
|
|
|
|
|
(81
|
)
|
|||
Other, net
|
(2
|
)
|
|
5
|
|
|
|
|
|||
Net cash used in financing activities
|
(180
|
)
|
|
(120
|
)
|
|
(88
|
)
|
|||
Net decrease in cash, cash equivalents and restricted cash
|
(74
|
)
|
|
(149
|
)
|
|
(69
|
)
|
|||
Cash, cash equivalents and restricted cash - beginning of period
|
610
|
|
|
716
|
|
|
800
|
|
|||
Effect of exchange rate changes on cash balances
|
(16
|
)
|
|
43
|
|
|
(15
|
)
|
|||
Cash, cash equivalents and restricted cash - end of period
|
$
|
520
|
|
|
$
|
610
|
|
|
$
|
716
|
|
|
Parent Company Stockholders'
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
(Accumulated
Deficit)
|
|
Treasury
Stock
|
|
Accumulated
Other
Compre-
hensive
Loss
|
|
Parent
Company
Stockholders'
Equity
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
||||||||||||||||||
Balance, December 31, 2015
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2,311
|
|
|
$
|
(410
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1,174
|
)
|
|
$
|
728
|
|
|
$
|
103
|
|
|
$
|
831
|
|
Net income
|
|
|
|
|
|
|
640
|
|
|
|
|
|
|
640
|
|
|
13
|
|
|
653
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(110
|
)
|
|
(110
|
)
|
|
(2
|
)
|
|
(112
|
)
|
||||||||||||||
Common stock dividends ($0.24 per share)
|
|
|
|
|
|
|
(35
|
)
|
|
|
|
|
|
(35
|
)
|
|
|
|
(35
|
)
|
|||||||||||||||
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|||||||||||||||
Derecognition of noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|||||||||||||||
Common stock share repurchases
|
|
|
|
|
|
|
|
|
(81
|
)
|
|
|
|
(81
|
)
|
|
|
|
(81
|
)
|
|||||||||||||||
Stock compensation
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
16
|
|
|||||||||||||||
Stock withheld for employees taxes
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|||||||||||||||
Balance, December 31, 2016
|
—
|
|
|
2
|
|
|
2,327
|
|
|
195
|
|
|
(83
|
)
|
|
(1,284
|
)
|
|
1,157
|
|
|
85
|
|
|
1,242
|
|
|||||||||
Adoption of ASU 2016-16 tax adjustment, January 1, 2017
|
|
|
|
|
|
|
(179
|
)
|
|
|
|
|
|
(179
|
)
|
|
|
|
(179
|
)
|
|||||||||||||||
Net income
|
|
|
|
|
|
|
111
|
|
|
|
|
|
|
111
|
|
|
10
|
|
|
121
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(58
|
)
|
|
(58
|
)
|
|
7
|
|
|
(51
|
)
|
||||||||||||||
Common stock dividends ($0.24 per share)
|
|
|
|
|
|
|
(35
|
)
|
|
|
|
|
|
(35
|
)
|
|
|
|
(35
|
)
|
|||||||||||||||
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|||||||||||||||
Increase from business combination
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|||||||||||||||
Redeemable noncontrolling interests adjustment to redemption value
|
|
|
|
|
|
|
(6
|
)
|
|
|
|
|
|
(6
|
)
|
|
|
|
(6
|
)
|
|||||||||||||||
Purchase of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||||||||||||
Stock compensation
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
27
|
|
|
|
|
27
|
|
|||||||||||||||
Stock withheld for employees taxes
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|||||||||||||||
Balance, December 31, 2017
|
—
|
|
|
2
|
|
|
2,354
|
|
|
86
|
|
|
(87
|
)
|
|
(1,342
|
)
|
|
1,013
|
|
|
101
|
|
|
1,114
|
|
|||||||||
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018
|
|
|
|
|
|
|
2
|
|
|
|
|
(2
|
)
|
|
—
|
|
|
|
|
—
|
|
||||||||||||||
Net income
|
|
|
|
|
|
|
427
|
|
|
|
|
|
|
427
|
|
|
13
|
|
|
440
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(18
|
)
|
|
(18
|
)
|
|
(6
|
)
|
|
(24
|
)
|
||||||||||||||
Common stock dividends ($0.40 per share)
|
|
|
|
|
1
|
|
|
(59
|
)
|
|
|
|
|
|
(58
|
)
|
|
|
|
(58
|
)
|
||||||||||||||
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(42
|
)
|
|
(42
|
)
|
|||||||||||||||
Purchase of noncontrolling interests
|
|
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
(9
|
)
|
|
9
|
|
|
—
|
|
||||||||||||||
Purchase of redeemable noncontrolling interests
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|||||||||||||||
Contribution from noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|||||||||||||||
Common stock share repurchases
|
|
|
|
|
|
|
|
|
(25
|
)
|
|
|
|
(25
|
)
|
|
|
|
(25
|
)
|
|||||||||||||||
Stock compensation
|
|
|
|
|
20
|
|
|
|
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|||||||||||||||
Stock withheld for employees taxes
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
(7
|
)
|
|
|
|
(7
|
)
|
|||||||||||||||
Balance, December 31, 2018
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2,368
|
|
|
$
|
456
|
|
|
$
|
(119
|
)
|
|
$
|
(1,362
|
)
|
|
$
|
1,345
|
|
|
$
|
97
|
|
|
$
|
1,442
|
|
|
|
Page
|
1.
|
Organization and Summary of Significant Accounting Policies
|
|
|
|
|
2.
|
Acquisitions
|
|
|
|
|
3.
|
Disposal Groups and Divestitures
|
|
|
|
|
4.
|
Goodwill and Other Intangible Assets
|
|
|
|
|
5.
|
Restructuring of Operations
|
|
|
|
|
6.
|
Inventories
|
|
|
|
|
7.
|
Supplemental Balance Sheet and Cash Flow Information
|
|
|
|
|
8.
|
Stockholders' Equity
|
|
|
|
|
9.
|
Redeemable Noncontrolling Interests
|
|
|
|
|
10.
|
Earnings per Share
|
|
|
|
|
11.
|
Stock Compensation
|
|
|
|
|
12.
|
Pension and Postretirement Benefit Plans
|
|
|
|
|
13.
|
Marketable Securities
|
|
|
|
|
14.
|
Financing Agreements
|
|
|
|
|
15.
|
Fair Value Measurements and Derivatives
|
|
|
|
|
16.
|
Commitments and Contingencies
|
|
|
|
|
17.
|
Warranty Obligations
|
|
|
|
|
18.
|
Income Taxes
|
|
|
|
|
19.
|
Other Income (Expense), Net
|
|
|
|
|
20.
|
Revenue from Contracts with Customers
|
|
|
|
|
21.
|
Segments, Geographical Area and Major Customer Information
|
|
|
|
|
22.
|
Equity Affiliates
|
|
|
Balance at December 31,
2017
|
|
Adjustments
Due to
ASU 2014-09
|
|
Balance at
January 1,
2018
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
|
||||||
Accounts receivable - Trade
|
|
$
|
994
|
|
|
$
|
15
|
|
|
$
|
1,009
|
|
Other current assets
|
|
97
|
|
|
1
|
|
|
98
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
||||||
Other accrued liabilities
|
|
$
|
220
|
|
|
$
|
16
|
|
|
$
|
236
|
|
|
|
December 31, 2018
|
||||||||||
|
|
Balances Without
Adoption of
ASU 2014-09
|
|
Adjustments
Due to
ASU 2014-09
|
|
As Reported
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
|
||||||
Accounts receivable - Trade
|
|
$
|
1,049
|
|
|
$
|
16
|
|
|
$
|
1,065
|
|
Other current assets
|
|
100
|
|
|
2
|
|
|
102
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
||||||
Other accrued liabilities
|
|
$
|
251
|
|
|
$
|
18
|
|
|
$
|
269
|
|
Standard
|
|
Effective Date
|
||
2017-09
|
|
Stock Compensation – Scope of Modification Accounting
|
|
January 1, 2018
|
2017-01
|
|
Business Combinations – Clarifying the Definition of a Business
|
|
January 1, 2018
|
2016-15
|
|
Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments
|
|
January 1, 2018
|
Total purchase consideration
|
|
$
|
125
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
3
|
|
Accounts receivable - Trade
|
|
3
|
|
|
Accounts receivable - Other
|
|
1
|
|
|
Inventories
|
|
4
|
|
|
Goodwill
|
|
148
|
|
|
Intangibles
|
|
24
|
|
|
Investment in affiliates
|
|
49
|
|
|
Property, plant and equipment
|
|
5
|
|
|
Accounts payable
|
|
(2
|
)
|
|
Accrued payroll and employee benefits
|
|
(1
|
)
|
|
Other accrued liabilities
|
|
(7
|
)
|
|
Redeemable noncontrolling interest
|
|
(102
|
)
|
|
Total purchase consideration allocation
|
|
$
|
125
|
|
Total purchase consideration
|
|
$
|
78
|
|
|
|
|
||
Accounts receivable - Trade
|
|
$
|
17
|
|
Accounts receivable - Other
|
|
3
|
|
|
Inventories
|
|
9
|
|
|
Goodwill
|
|
3
|
|
|
Intangibles
|
|
33
|
|
|
Property, plant and equipment
|
|
50
|
|
|
Accounts payable
|
|
(34
|
)
|
|
Accrued payroll and employee benefits
|
|
(2
|
)
|
|
Other accrued liabilities
|
|
(1
|
)
|
|
Total purchase consideration allocation
|
|
$
|
78
|
|
Total purchase consideration
|
|
$
|
201
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
75
|
|
Accounts receivable - Trade
|
|
78
|
|
|
Accounts receivable - Other
|
|
18
|
|
|
Inventories
|
|
134
|
|
|
Other current assets
|
|
9
|
|
|
Goodwill
|
|
20
|
|
|
Intangibles
|
|
41
|
|
|
Deferred tax assets
|
|
3
|
|
|
Other noncurrent assets
|
|
4
|
|
|
Property, plant and equipment
|
|
174
|
|
|
Notes payable, including current portion of long-term debt
|
|
(130
|
)
|
|
Accounts payable
|
|
(51
|
)
|
|
Accrued payroll and employee benefits
|
|
(14
|
)
|
|
Taxes on income
|
|
(1
|
)
|
|
Other accrued liabilities
|
|
(19
|
)
|
|
Long-term debt
|
|
(51
|
)
|
|
Pension and postretirement obligations
|
|
(11
|
)
|
|
Other noncurrent liabilities
|
|
(22
|
)
|
|
Redeemable noncontrolling interest
|
|
(44
|
)
|
|
Noncontrolling interests
|
|
(12
|
)
|
|
Total purchase consideration allocation
|
|
$
|
201
|
|
Total purchase consideration
|
|
$
|
70
|
|
|
|
|
||
Accounts receivable - Trade
|
|
$
|
1
|
|
Accounts receivable - Other
|
|
1
|
|
|
Inventories
|
|
10
|
|
|
Goodwill
|
|
7
|
|
|
Intangibles
|
|
3
|
|
|
Property, plant and equipment
|
|
59
|
|
|
Accounts payable
|
|
(2
|
)
|
|
Accrued payroll and employee benefits
|
|
(9
|
)
|
|
Total purchase consideration allocation
|
|
$
|
70
|
|
|
December 31,
2017
|
||
Accounts receivable - Trade
|
$
|
3
|
|
Inventories
|
4
|
|
|
Current assets classified as held for sale
|
$
|
7
|
|
|
|
||
Accounts payable
|
$
|
3
|
|
Accrued payroll and employee benefits
|
1
|
|
|
Other accrued liabilities
|
1
|
|
|
Current liabilities classified as held for sale
|
$
|
5
|
|
|
|
||
Other noncurrent liabilities
|
$
|
2
|
|
Noncurrent liabilities classified as held for sale
|
$
|
2
|
|
|
Light Vehicle
|
|
Commercial Vehicle
|
|
Off-Highway
|
|
Power Technologies
|
|
Total
|
||||||||||
Balance, December 31, 2016
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
78
|
|
|
$
|
6
|
|
|
$
|
90
|
|
Acquisitions
|
3
|
|
|
|
20
|
|
|
|
23
|
|
|||||||||
Purchase accounting adjustments
|
|
|
1
|
|
|
|
|
|
|
1
|
|
||||||||
Currency impact
|
|
|
1
|
|
|
12
|
|
|
|
|
13
|
|
|||||||
Balance, December 31, 2017
|
3
|
|
|
8
|
|
|
110
|
|
|
6
|
|
|
127
|
|
|||||
Acquisition
|
|
|
148
|
|
|
|
|
|
|
148
|
|
||||||||
Currency impact
|
|
|
(6
|
)
|
|
(5
|
)
|
|
|
|
(11
|
)
|
|||||||
Balance, December 31, 2018
|
$
|
3
|
|
|
$
|
150
|
|
|
$
|
105
|
|
|
$
|
6
|
|
|
$
|
264
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Weighted
Average
Useful Life
(years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Impairment and
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Impairment and
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Amortizable intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Core technology
|
8
|
|
$
|
107
|
|
|
$
|
(89
|
)
|
|
$
|
18
|
|
|
$
|
95
|
|
|
$
|
(88
|
)
|
|
$
|
7
|
|
Trademarks and trade names
|
16
|
|
16
|
|
|
(4
|
)
|
|
12
|
|
|
17
|
|
|
(2
|
)
|
|
15
|
|
||||||
Customer relationships
|
8
|
|
460
|
|
|
(400
|
)
|
|
60
|
|
|
470
|
|
|
(403
|
)
|
|
67
|
|
||||||
Non-amortizable intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trademarks and trade names
|
|
|
74
|
|
|
|
|
74
|
|
|
65
|
|
|
|
|
65
|
|
||||||||
Used in research and development activities
|
|
|
20
|
|
|
(20
|
)
|
|
—
|
|
|
20
|
|
|
|
|
20
|
|
|||||||
|
|
|
$
|
677
|
|
|
$
|
(513
|
)
|
|
$
|
164
|
|
|
$
|
667
|
|
|
$
|
(493
|
)
|
|
$
|
174
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Charged to cost of sales
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
1
|
|
Charged to amortization of intangibles
|
8
|
|
|
11
|
|
|
8
|
|
|||
Total amortization
|
$
|
10
|
|
|
$
|
13
|
|
|
$
|
9
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
||||||||||
Amortization expense
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
Employee
Termination
Benefits
|
|
Exit
Costs
|
|
Total
|
||||||
Balance, December 31, 2015
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
17
|
|
Charges to restructuring
|
35
|
|
|
3
|
|
|
38
|
|
|||
Adjustments of accruals
|
(2
|
)
|
|
|
|
|
(2
|
)
|
|||
Cash payments
|
(10
|
)
|
|
(5
|
)
|
|
(15
|
)
|
|||
Balance, December 31, 2016
|
32
|
|
|
6
|
|
|
38
|
|
|||
Charges to restructuring
|
16
|
|
|
6
|
|
|
22
|
|
|||
Adjustments of accruals
|
(8
|
)
|
|
|
|
|
(8
|
)
|
|||
Cash payments
|
(21
|
)
|
|
(7
|
)
|
|
(28
|
)
|
|||
Currency impact
|
2
|
|
|
|
|
2
|
|
||||
Balance, December 31, 2017
|
21
|
|
|
5
|
|
|
26
|
|
|||
Charges to restructuring
|
28
|
|
|
4
|
|
|
32
|
|
|||
Adjustments of accruals
|
(7
|
)
|
|
|
|
(7
|
)
|
||||
Cash payments
|
(16
|
)
|
|
(5
|
)
|
|
(21
|
)
|
|||
Currency impact
|
(1
|
)
|
|
|
|
|
(1
|
)
|
|||
Balance, December 31, 2018
|
$
|
25
|
|
|
$
|
4
|
|
|
$
|
29
|
|
|
Expense Recognized
|
|
Future
Cost to
Complete
|
||||||||
|
Prior to
2018
|
|
2018
|
|
Total
to Date
|
|
|||||
Commercial Vehicle
|
35
|
|
|
3
|
|
|
38
|
|
|
8
|
|
|
2018
|
|
2017
|
||||
Raw materials
|
$
|
433
|
|
|
$
|
442
|
|
Work in process and finished goods
|
649
|
|
|
580
|
|
||
Inventory reserves
|
(51
|
)
|
|
(53
|
)
|
||
Total
|
$
|
1,031
|
|
|
$
|
969
|
|
|
2018
|
|
2017
|
||||
Other current assets:
|
|
|
|
|
|
||
Prepaid expenses
|
$
|
76
|
|
|
$
|
83
|
|
Other
|
26
|
|
|
14
|
|
||
Total
|
$
|
102
|
|
|
$
|
97
|
|
|
|
|
|
||||
Other noncurrent assets:
|
|
|
|
|
|
||
Contract asset
|
$
|
25
|
|
|
$
|
—
|
|
Prepaid expenses
|
3
|
|
|
17
|
|
||
Deferred financing costs
|
4
|
|
|
5
|
|
||
Pension assets, net of related obligations
|
3
|
|
|
3
|
|
||
Other
|
45
|
|
|
46
|
|
||
Total
|
$
|
80
|
|
|
$
|
71
|
|
|
|
|
|
||||
Property, plant and equipment, net:
|
|
|
|
|
|
||
Land and improvements to land
|
$
|
207
|
|
|
$
|
210
|
|
Buildings and building fixtures
|
552
|
|
|
518
|
|
||
Machinery and equipment
|
2,817
|
|
|
2,635
|
|
||
Total cost
|
3,576
|
|
|
3,363
|
|
||
Less: accumulated depreciation
|
(1,726
|
)
|
|
(1,556
|
)
|
||
Net
|
$
|
1,850
|
|
|
$
|
1,807
|
|
|
|
|
|
||||
Other accrued liabilities (current):
|
|
|
|
||||
Non-income taxes payable
|
$
|
53
|
|
|
$
|
43
|
|
Accrued interest
|
13
|
|
|
14
|
|
||
Warranty reserves
|
34
|
|
|
29
|
|
||
Deferred income
|
6
|
|
|
12
|
|
||
Work place injury costs
|
5
|
|
|
6
|
|
||
Restructuring costs
|
26
|
|
|
22
|
|
||
Payable under forward contracts
|
11
|
|
|
9
|
|
||
Environmental
|
5
|
|
|
3
|
|
||
Other expense accruals
|
116
|
|
|
82
|
|
||
Total
|
$
|
269
|
|
|
$
|
220
|
|
|
|
|
|
||||
Other noncurrent liabilities:
|
|
|
|
||||
Income tax liability
|
$
|
48
|
|
|
$
|
48
|
|
Interest rate swap market valuation
|
118
|
|
|
177
|
|
||
Deferred income tax liability
|
28
|
|
|
59
|
|
||
Work place injury costs
|
19
|
|
|
22
|
|
||
Warranty reserves
|
41
|
|
|
47
|
|
||
Restructuring costs
|
3
|
|
|
4
|
|
||
Other noncurrent liabilities
|
56
|
|
|
56
|
|
||
Total
|
$
|
313
|
|
|
$
|
413
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||
Cash and cash equivalents
|
|
$
|
510
|
|
|
$
|
603
|
|
|
$
|
707
|
|
|
$
|
791
|
|
Restricted cash included in other current assets
|
|
7
|
|
|
3
|
|
|
5
|
|
|
6
|
|
||||
Restricted cash included in other noncurrent assets
|
|
3
|
|
|
4
|
|
|
4
|
|
|
3
|
|
||||
Total cash, cash equivalents and restricted cash
|
|
$
|
520
|
|
|
$
|
610
|
|
|
$
|
716
|
|
|
$
|
800
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Change in working capital:
|
|
|
|
|
|
||||||
Change in accounts receivable
|
$
|
(113
|
)
|
|
$
|
(141
|
)
|
|
$
|
(86
|
)
|
Change in inventories
|
(110
|
)
|
|
(146
|
)
|
|
(13
|
)
|
|||
Change in accounts payable
|
97
|
|
|
234
|
|
|
70
|
|
|||
Change in accrued payroll and employee benefits
|
(28
|
)
|
|
53
|
|
|
5
|
|
|||
Change in accrued income taxes
|
(3
|
)
|
|
26
|
|
|
(13
|
)
|
|||
Change in other current assets and liabilities
|
44
|
|
|
(34
|
)
|
|
(14
|
)
|
|||
Net
|
$
|
(113
|
)
|
|
$
|
(8
|
)
|
|
$
|
(51
|
)
|
|
Parent Company Stockholders
|
||||||||||||||||||
|
Foreign
Currency
Translation
|
|
Hedging
|
|
Investments
|
|
Defined
Benefit
Plans
|
|
Accumulated
Other
Comprehensive
Loss
|
||||||||||
Balance, December 31, 2015
|
$
|
(608
|
)
|
|
$
|
(4
|
)
|
|
$
|
2
|
|
|
$
|
(564
|
)
|
|
$
|
(1,174
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation adjustments
|
(43
|
)
|
|
|
|
|
|
|
|
|
|
|
(43
|
)
|
|||||
Holding gains and losses
|
|
|
|
(16
|
)
|
|
3
|
|
|
|
|
|
(13
|
)
|
|||||
Reclassification of amount to net income
(a)
|
|
|
(14
|
)
|
|
(7
|
)
|
|
|
|
(21
|
)
|
|||||||
Net actuarial losses
|
|
|
|
|
|
|
|
(88
|
)
|
|
(88
|
)
|
|||||||
Reclassification adjustment for net actuarial losses included in net periodic benefit cost
(b)
|
|
|
|
|
|
|
|
26
|
|
|
26
|
|
|||||||
Elimination due to sale of subsidiary
|
2
|
|
|
|
|
2
|
|
|
1
|
|
|
5
|
|
||||||
Tax benefit
|
3
|
|
|
|
|
|
|
|
|
21
|
|
|
24
|
|
|||||
Other comprehensive loss
|
(38
|
)
|
|
(30
|
)
|
|
(2
|
)
|
|
(40
|
)
|
|
(110
|
)
|
|||||
Balance, December 31, 2016
|
(646
|
)
|
|
(34
|
)
|
|
—
|
|
|
(604
|
)
|
|
(1,284
|
)
|
|||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
|
(22
|
)
|
|||||
Holding loss on net investment hedge
|
(2
|
)
|
|
|
|
|
|
|
|
(2
|
)
|
||||||||
Holding gains and losses
|
|
|
|
(162
|
)
|
|
1
|
|
|
|
|
|
(161
|
)
|
|||||
Reclassification of amount to net income
(a)
|
|
|
128
|
|
|
|
|
|
|
|
128
|
|
|||||||
Net actuarial losses
|
|
|
|
|
|
|
|
(28
|
)
|
|
(28
|
)
|
|||||||
Curtailment gain
|
|
|
|
|
|
|
1
|
|
|
1
|
|
||||||||
Reclassification adjustment for net actuarial losses included in net periodic benefit cost
(b)
|
|
|
|
|
|
|
|
30
|
|
|
30
|
|
|||||||
Tax (expense) benefit
|
|
|
|
4
|
|
|
1
|
|
|
(9
|
)
|
|
(4
|
)
|
|||||
Other comprehensive income (loss)
|
(24
|
)
|
|
(30
|
)
|
|
2
|
|
|
(6
|
)
|
|
(58
|
)
|
|||||
Balance, December 31, 2017
|
(670
|
)
|
|
(64
|
)
|
|
2
|
|
|
(610
|
)
|
|
(1,342
|
)
|
|||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation adjustments
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
(48
|
)
|
|||||
Holding loss on net investment hedge
|
(3
|
)
|
|
|
|
|
|
|
|
(3
|
)
|
||||||||
Holding gains and losses
|
|
|
|
66
|
|
|
|
|
|
|
|
|
66
|
|
|||||
Reclassification of amount to net income
(a)
|
|
|
|
(56
|
)
|
|
|
|
|
|
|
|
(56
|
)
|
|||||
Net actuarial losses
|
|
|
|
|
|
|
|
(8
|
)
|
|
(8
|
)
|
|||||||
Reclassification adjustment for net actuarial losses included in net periodic benefit cost
(b)
|
|
|
|
|
|
|
|
34
|
|
|
34
|
|
|||||||
Other
|
|
|
|
|
|
|
2
|
|
|
2
|
|
||||||||
Tax expense
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|
(5
|
)
|
|||||
Other comprehensive income (loss)
|
(51
|
)
|
|
10
|
|
|
—
|
|
|
23
|
|
|
(18
|
)
|
|||||
Adoption of ASU 2016-01 financial instruments adjustment, January 1, 2018
|
|
|
|
|
(2
|
)
|
|
|
|
(2
|
)
|
||||||||
Balance, December 31, 2018
|
$
|
(721
|
)
|
|
$
|
(54
|
)
|
|
$
|
—
|
|
|
$
|
(587
|
)
|
|
$
|
(1,362
|
)
|
(a)
|
For 2018, realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments treated as cash flow hedges are reclassified from AOCI into the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. See Note 15 for additional details. For 2017 and 2016, reclassifications from AOCI were included in other income (expense), net.
|
(b)
|
See
Note 12
for additional details.
|
|
|
2018
|
|
2017
|
||||
Balance, beginning of period
|
|
$
|
47
|
|
|
$
|
—
|
|
Initial fair value of redeemable noncontrolling interests of acquired businesses
|
|
102
|
|
|
44
|
|
||
Capital contribution from redeemable noncontrolling interest
|
|
3
|
|
|
|
|||
Purchase of redeemable noncontrolling interest
|
|
(46
|
)
|
|
(1
|
)
|
||
Comprehensive income (loss) adjustments:
|
|
|
|
|
||||
Net income (loss) attributable to redeemable noncontrolling interests
|
|
|
|
(5
|
)
|
|||
Other comprehensive income (loss) attributable to redeemable noncontrolling interests
|
|
(6
|
)
|
|
3
|
|
||
Retained earnings adjustments:
|
|
|
|
|
||||
Adjustment to redemption value
|
|
|
|
6
|
|
|||
Balance, end of period
|
|
$
|
100
|
|
|
$
|
47
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income attributable to the parent company
|
$
|
427
|
|
|
$
|
111
|
|
|
$
|
640
|
|
Less: Redeemable noncontrolling interests adjustment to redemption value
|
|
|
|
(6
|
)
|
|
|
|
|||
Net income available to common stockholders - Numerator basic and diluted
|
$
|
427
|
|
|
$
|
105
|
|
|
$
|
640
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding - Basic
|
145.0
|
|
|
145.1
|
|
|
146.0
|
|
|||
Employee compensation-related shares, including stock options
|
1.5
|
|
|
1.8
|
|
|
0.8
|
|
|||
Weighted-average common shares outstanding - Diluted
|
146.5
|
|
|
146.9
|
|
|
146.8
|
|
|
|
Options
|
|
SARs
|
|
RSUs
|
|
PSUs
|
||||||||||||||||||||
|
|
Shares
|
|
Exercise Price*
|
|
Shares
|
|
Exercise Price*
|
|
Shares
|
|
Grant-Date
Fair Value*
|
|
Shares
|
|
Grant-Date
Fair Value*
|
||||||||||||
December 31, 2017
|
|
0.8
|
|
|
$
|
14.58
|
|
|
0.1
|
|
|
$
|
14.83
|
|
|
1.8
|
|
|
$
|
17.38
|
|
|
0.6
|
|
|
$
|
15.70
|
|
Granted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.7
|
|
|
26.93
|
|
|
0.2
|
|
|
27.13
|
|
||||
Exercised or vested
|
|
(0.1
|
)
|
|
10.95
|
|
|
|
|
|
|
|
|
(0.6
|
)
|
|
20.45
|
|
|
(0.2
|
)
|
|
12.90
|
|
||||
Forfeited or expired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.1
|
)
|
|
20.77
|
|
|
(0.1
|
)
|
|
17.55
|
|
||||
December 31, 2018
|
|
0.7
|
|
|
15.33
|
|
|
0.1
|
|
|
|
|
|
1.8
|
|
|
20.06
|
|
|
0.5
|
|
|
22.45
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Total stock compensation expense
|
$
|
16
|
|
|
$
|
23
|
|
|
$
|
17
|
|
Total grant-date fair value of awards vested
|
16
|
|
|
17
|
|
|
11
|
|
|||
Cash received from exercise of stock options
|
2
|
|
|
10
|
|
|
2
|
|
|||
Cash paid to settle SARs and RSUs
|
2
|
|
|
4
|
|
|
1
|
|
|||
Intrinsic value of stock options and SARs exercised
|
3
|
|
|
8
|
|
|
1
|
|
|||
Intrinsic value of RSUs and PSUs vested
|
18
|
|
|
20
|
|
|
7
|
|
|
|
PSUs
|
|
|
|
2016
|
|
Expected term (in years)
|
|
3.0
|
|
Risk-free interest rate
|
|
1.00
|
%
|
Dividend yield
|
|
1.40
|
%
|
Expected volatility
|
|
33.4
|
%
|
|
Pension Benefits
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||||||
Interest cost
|
$
|
43
|
|
|
$
|
7
|
|
|
$
|
51
|
|
|
$
|
7
|
|
|
$
|
53
|
|
|
$
|
7
|
|
Expected return on plan assets
|
(71
|
)
|
|
(3
|
)
|
|
(82
|
)
|
|
(3
|
)
|
|
(92
|
)
|
|
(2
|
)
|
||||||
Service cost
|
|
|
|
7
|
|
|
|
|
|
7
|
|
|
|
|
|
5
|
|
||||||
Amortization of net actuarial loss
|
28
|
|
|
6
|
|
|
23
|
|
|
7
|
|
|
21
|
|
|
6
|
|
||||||
Termination benefit
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
||||||||||
Other
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
||||||
Net periodic benefit cost (credit)
|
—
|
|
|
19
|
|
|
(8
|
)
|
|
19
|
|
|
(18
|
)
|
|
17
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Recognized in OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amount due to net actuarial losses
|
11
|
|
|
4
|
|
|
22
|
|
|
4
|
|
|
68
|
|
|
16
|
|
||||||
Reclassification adjustment for net actuarial losses in net periodic benefit cost
|
(28
|
)
|
|
(6
|
)
|
|
(23
|
)
|
|
(7
|
)
|
|
(21
|
)
|
|
(6
|
)
|
||||||
Curtailment
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
||||||||||
Other
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
||||||
Total recognized in OCI
|
(17
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
47
|
|
|
9
|
|
||||||
Net recognized in benefit cost (credit) and OCI
|
$
|
(17
|
)
|
|
$
|
15
|
|
|
$
|
(9
|
)
|
|
$
|
15
|
|
|
$
|
29
|
|
|
$
|
26
|
|
|
OPEB - Non-U.S.
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Interest cost
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Service cost
|
1
|
|
|
1
|
|
|
1
|
|
|||
Amortization of net actuarial gain
|
|
|
|
|
|
|
(1
|
)
|
|||
Net periodic benefit cost
|
4
|
|
|
4
|
|
|
3
|
|
|||
|
|
|
|
|
|
||||||
Recognized in OCI:
|
|
|
|
|
|
|
|
|
|||
Amount due to net actuarial (gains) losses
|
(7
|
)
|
|
2
|
|
|
4
|
|
|||
Reclassification adjustment for net actuarial gain in net periodic benefit cost
|
|
|
|
|
|
|
1
|
|
|||
Total recognized in OCI
|
(7
|
)
|
|
2
|
|
|
5
|
|
|||
Net recognized in benefit cost and OCI
|
$
|
(3
|
)
|
|
$
|
6
|
|
|
$
|
8
|
|
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
2018
|
|
2017
|
|
OPEB - Non-U.S.
|
||||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
2018
|
|
2017
|
||||||||||||
Reconciliation of benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligation at beginning of period
|
$
|
1,730
|
|
|
$
|
377
|
|
|
$
|
1,682
|
|
|
$
|
309
|
|
|
$
|
99
|
|
|
$
|
91
|
|
Interest cost
|
43
|
|
|
7
|
|
|
51
|
|
|
7
|
|
|
3
|
|
|
3
|
|
||||||
Service cost
|
|
|
|
7
|
|
|
|
|
|
7
|
|
|
1
|
|
|
1
|
|
||||||
Actuarial (gain) loss
|
(148
|
)
|
|
7
|
|
|
115
|
|
|
7
|
|
|
(7
|
)
|
|
2
|
|
||||||
Benefit payments
|
(124
|
)
|
|
(14
|
)
|
|
(118
|
)
|
|
(14
|
)
|
|
(5
|
)
|
|
(5
|
)
|
||||||
Acquisitions
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
||||||||||
Settlements
|
|
|
|
(2
|
)
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
||||||
Termination benefit
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
||||||||||
Curtailment
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
||||||||||
Translation adjustments
|
|
|
|
(18
|
)
|
|
|
|
|
40
|
|
|
(8
|
)
|
|
7
|
|
||||||
Obligation at end of period
|
$
|
1,501
|
|
|
$
|
364
|
|
|
$
|
1,730
|
|
|
$
|
377
|
|
|
$
|
83
|
|
|
$
|
99
|
|
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
2018
|
|
2017
|
|
OPEB - Non-U.S.
|
||||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
2018
|
|
2017
|
||||||||||||
Reconciliation of fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value at beginning of period
|
$
|
1,513
|
|
|
$
|
71
|
|
|
$
|
1,454
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
(88
|
)
|
|
6
|
|
|
175
|
|
|
6
|
|
|
|
|
|
|
|
||||||
Employer contributions
|
|
|
|
16
|
|
|
2
|
|
|
15
|
|
|
5
|
|
|
5
|
|
||||||
Benefit payments
|
(124
|
)
|
|
(14
|
)
|
|
(118
|
)
|
|
(14
|
)
|
|
(5
|
)
|
|
(5
|
)
|
||||||
Settlements
|
|
|
|
(2
|
)
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
||||||
Acquisition
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
||||||||||
Translation adjustments
|
|
|
|
(6
|
)
|
|
|
|
|
2
|
|
|
|
|
|
|
|
||||||
Fair value at end of period
|
$
|
1,301
|
|
|
$
|
71
|
|
|
$
|
1,513
|
|
|
$
|
71
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Funded status at end of period
|
$
|
(200
|
)
|
|
$
|
(293
|
)
|
|
$
|
(217
|
)
|
|
$
|
(306
|
)
|
|
$
|
(83
|
)
|
|
$
|
(99
|
)
|
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
2018
|
|
2017
|
|
OPEB - Non-U.S.
|
||||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
2018
|
|
2017
|
||||||||||||
Amounts recognized in the consolidated balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noncurrent assets
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
|
|
|
(13
|
)
|
|
|
|
|
(13
|
)
|
|
(5
|
)
|
|
(5
|
)
|
||||||
Noncurrent liabilities
|
(200
|
)
|
|
(283
|
)
|
|
(217
|
)
|
|
(296
|
)
|
|
(78
|
)
|
|
(94
|
)
|
||||||
Net amount recognized
|
$
|
(200
|
)
|
|
$
|
(293
|
)
|
|
$
|
(217
|
)
|
|
$
|
(306
|
)
|
|
$
|
(83
|
)
|
|
$
|
(99
|
)
|
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
2018
|
|
2017
|
|
OPEB - Non-U.S.
|
||||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
2018
|
|
2017
|
||||||||||||
Amounts recognized in AOCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net actuarial loss (gain)
|
$
|
542
|
|
|
$
|
84
|
|
|
$
|
559
|
|
|
$
|
88
|
|
|
$
|
(15
|
)
|
|
$
|
(8
|
)
|
AOCI before tax
|
542
|
|
|
84
|
|
|
559
|
|
|
88
|
|
|
(15
|
)
|
|
(8
|
)
|
||||||
Deferred taxes
|
(6
|
)
|
|
(22
|
)
|
|
(10
|
)
|
|
(22
|
)
|
|
4
|
|
|
3
|
|
||||||
Net
|
$
|
536
|
|
|
$
|
62
|
|
|
$
|
549
|
|
|
$
|
66
|
|
|
$
|
(11
|
)
|
|
$
|
(5
|
)
|
|
2018
|
|
2017
|
||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Plans with fair value of plan assets in excess of obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accumulated benefit obligation
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
16
|
|
|
$
|
15
|
|
Projected benefit obligation
|
14
|
|
|
16
|
|
|
16
|
|
|
15
|
|
||||
Fair value of plan assets
|
15
|
|
|
19
|
|
|
16
|
|
|
18
|
|
||||
Plans with obligations in excess of fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
||||||
Accumulated benefit obligation
|
$
|
1,487
|
|
|
$
|
322
|
|
|
$
|
1,714
|
|
|
$
|
334
|
|
Projected benefit obligation
|
1,487
|
|
|
348
|
|
|
1,714
|
|
|
362
|
|
||||
Fair value of plan assets
|
1,286
|
|
|
52
|
|
|
1,497
|
|
|
53
|
|
|
|
|
|
Fair Value Measurements at December 31, 2018
|
||||||||||||||||||||||||
|
|
|
|
U.S.
|
|
Non-U.S.
|
||||||||||||||||||||||
Asset Category
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
NAV (a)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. all cap (b)
|
|
$
|
35
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. large cap
|
|
43
|
|
|
|
|
|
|
|
|
43
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. small cap
|
|
4
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EAFE composite
|
|
41
|
|
|
|
|
|
|
|
|
41
|
|
|
|
|
|
|
|
|
|
||||||||
Emerging markets
|
|
28
|
|
|
|
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. bonds (c)
|
|
33
|
|
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
|
814
|
|
|
|
|
|
616
|
|
|
198
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury strips
|
|
115
|
|
|
|
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-U.S. government securities
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
25
|
|
|
|
|
|||||||||
Emerging market debt
|
|
48
|
|
|
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
||||||||
Alternative investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance contracts (d)
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|||||||||
Real estate
|
|
21
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
||||||||
Other (e)
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
120
|
|
|
|
|
|
119
|
|
|
|
|
|
|
|
1
|
|
|
|
|
||||||||
Total
|
|
$
|
1,372
|
|
|
$
|
39
|
|
|
$
|
883
|
|
|
$
|
379
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
35
|
|
|
|
|
|
Fair Value Measurements at December 31, 2017
|
||||||||||||||||||||||||
|
|
|
|
U.S.
|
|
Non-U.S.
|
||||||||||||||||||||||
Asset Category
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
NAV (a)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. all cap (b)
|
|
$
|
62
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. large cap
|
|
61
|
|
|
|
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. small cap
|
|
7
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EAFE composite
|
|
65
|
|
|
|
|
|
|
|
|
65
|
|
|
|
|
|
|
|
|
|
||||||||
Emerging markets
|
|
52
|
|
|
|
|
|
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. bonds (c)
|
|
61
|
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
|
464
|
|
|
|
|
|
226
|
|
|
238
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury strips
|
|
281
|
|
|
|
|
|
281
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-U.S. government securities
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
|
|
|||||||||
Emerging market debt
|
|
82
|
|
|
|
|
|
|
|
|
82
|
|
|
|
|
|
|
|
|
|
||||||||
Alternative investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Insurance contracts (d)
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
|||||||||
Real estate
|
|
35
|
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
||||||||
Other (e)
|
|
1
|
|
|
|
|
|
(10
|
)
|
|
|
|
|
|
11
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
354
|
|
|
|
|
|
353
|
|
|
|
|
|
|
1
|
|
|
|
|
|||||||||
Total
|
|
$
|
1,584
|
|
|
$
|
69
|
|
|
$
|
911
|
|
|
$
|
533
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
33
|
|
(a)
|
Certain assets are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy.
|
(b)
|
This category comprises a combination of small-, mid- and large-cap equity stocks that are allocated at the investment manager's discretion. Investments include common and preferred securities as well as equity funds that invest in these instruments.
|
(c)
|
This category represents a combination of high-yield and investment grade corporate bonds, sovereign bonds, Yankee bonds, asset-backed securities and U.S. government bonds. Investments include fixed income funds that invest in these instruments.
|
(d)
|
This category comprises contracts placed with insurance companies where the underlying assets are invested in fixed interest securities.
|
(e)
|
Other assets in the U.S. represent interest rate derivatives which had a market value of
$(10)
at December 31, 2017.
|
|
|
2018
|
|
2017
|
||||
|
|
Non-U.S.
|
|
Non-U.S.
|
||||
Reconciliation of Level 3 Assets
|
|
Insurance
Contracts
|
|
Insurance
Contracts
|
||||
Fair value at beginning of period
|
|
$
|
33
|
|
|
$
|
16
|
|
Actual gains relating to assets still held at the reporting date
|
|
4
|
|
|
3
|
|
||
Purchases, sales and settlements
|
|
(1
|
)
|
|
1
|
|
||
Currency impact
|
|
(1
|
)
|
|
3
|
|
||
Transfers into (out of) Level 3
|
|
|
|
|
10
|
|
||
Fair value at end of period
|
|
$
|
35
|
|
|
$
|
33
|
|
|
1% Point
Increase
|
|
1% Point
Decrease
|
||||
Effect on total of service and interest cost components
|
$
|
1
|
|
|
$
|
(1
|
)
|
Effect on OPEB obligations
|
8
|
|
|
(7
|
)
|
|
|
Pension Benefits
|
|
OPEB
|
||||||||
Year
|
|
U.S.
|
|
Non-U.S.
|
|
Non-U.S.
|
||||||
2019
|
|
$
|
1,001
|
|
|
$
|
25
|
|
|
$
|
5
|
|
2020
|
|
43
|
|
|
15
|
|
|
5
|
|
|||
2021
|
|
42
|
|
|
15
|
|
|
5
|
|
|||
2022
|
|
42
|
|
|
17
|
|
|
5
|
|
|||
2023
|
|
41
|
|
|
17
|
|
|
5
|
|
|||
2024 to 2028
|
|
191
|
|
|
103
|
|
|
24
|
|
|||
Total
|
|
$
|
1,360
|
|
|
$
|
192
|
|
|
$
|
49
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Cost
|
|
Unrealized
Gains (Losses)
|
|
Fair
Value
|
|
Cost
|
|
Unrealized
Gains (Losses)
|
|
Fair
Value
|
||||||||||||
U.S. government securities
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Corporate securities
|
4
|
|
|
|
|
|
4
|
|
|
5
|
|
|
|
|
|
5
|
|
||||||
Certificates of deposit
|
15
|
|
|
|
|
|
15
|
|
|
27
|
|
|
|
|
27
|
|
|||||||
Other
|
|
|
|
|
|
|
|
|
|
4
|
|
|
1
|
|
|
5
|
|
||||||
Total marketable securities
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
39
|
|
|
$
|
1
|
|
|
$
|
40
|
|
|
|
Interest
Rate |
|
2018
|
|
2017
|
||||
Senior Notes due September 15, 2023
|
|
6.000%
|
|
$
|
300
|
|
|
$
|
300
|
|
Senior Notes due December 15, 2024
|
|
5.500%
|
|
425
|
|
|
425
|
|
||
Senior Notes due April 15, 2025
|
|
5.750%
|
*
|
400
|
|
|
400
|
|
||
Senior Notes due June 1, 2026
|
|
6.500%
|
*
|
375
|
|
|
375
|
|
||
Term Facility
|
|
|
|
265
|
|
|
275
|
|
||
Other indebtedness
|
|
|
|
28
|
|
|
29
|
|
||
Debt issuance costs
|
|
|
|
(18
|
)
|
|
(22
|
)
|
||
|
|
|
|
1,775
|
|
|
1,782
|
|
||
Less: Current portion of long-term debt
|
|
|
|
20
|
|
|
23
|
|
||
Long-term debt, less debt issuance costs
|
|
|
|
$
|
1,755
|
|
|
$
|
1,759
|
|
*
|
In conjunction with the issuance of the April 2025 Notes we entered into 8-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of
3.850%
. In conjunction with the issuance of the June 2026 Notes we entered into 10-year fixed-to-fixed cross-currency swaps which have the effect of economically converting the June 2026 Notes to euro-denominated debt at a fixed rate of
5.140%
. See Note 15 for additional information.
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
||||||||||
Maturities
|
$
|
20
|
|
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
215
|
|
|
$
|
302
|
|
|
|
Redemption Price
|
||||||||||
|
|
September
|
|
December
|
|
April
|
|
June
|
||||
Year
|
|
2023 Notes
|
|
2024 Notes
|
|
2025 Notes
|
|
2026 Notes
|
||||
2019
|
|
102.000
|
%
|
|
102.750
|
%
|
|
|
|
|
||
2020
|
|
101.000
|
%
|
|
101.833
|
%
|
|
104.313
|
%
|
|
|
|
2021
|
|
100.000
|
%
|
|
100.917
|
%
|
|
102.875
|
%
|
|
103.250
|
%
|
2022
|
|
100.000
|
%
|
|
100.000
|
%
|
|
101.438
|
%
|
|
102.167
|
%
|
2023
|
|
|
|
100.000
|
%
|
|
100.000
|
%
|
|
101.083
|
%
|
|
2024
|
|
|
|
|
|
100.000
|
%
|
|
100.000
|
%
|
||
2025
|
|
|
|
|
|
|
|
100.000
|
%
|
|
|
Margin
|
||||
Total Net Leverage Ratio
|
|
Base Rate
|
|
Eurodollar Rate
|
||
Less than or equal to 1.00:1.00
|
|
0.50
|
%
|
|
1.50
|
%
|
Greater than 1.00:1.00 but less than or equal to 2.00:1.00
|
|
0.75
|
%
|
|
1.75
|
%
|
Greater than 2.00:1.00
|
|
1.00
|
%
|
|
2.00
|
%
|
Total Net Leverage Ratio
|
|
Commitment Fee
|
|
Less than or equal to 1.00:1.00
|
|
0.250
|
%
|
Greater than 1.00:1.00 but less than or equal to 2.00:1.00
|
|
0.375
|
%
|
Greater than 2.00:1.00
|
|
0.500
|
%
|
|
|
|
|
|
|
Fair Value
|
||||||
Category
|
|
Balance Sheet Location
|
|
Fair Value Level
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Available-for-sale securities
|
|
Marketable securities
|
|
1
|
|
$
|
—
|
|
|
$
|
5
|
|
Available-for-sale securities
|
|
Marketable securities
|
|
2
|
|
21
|
|
|
35
|
|
||
Currency forward contracts
|
|
|
|
|
|
|
|
|
||||
Cash flow hedges
|
|
Accounts receivable - Other
|
|
2
|
|
6
|
|
|
1
|
|
||
Cash flow hedges
|
|
Other accrued liabilities
|
|
2
|
|
5
|
|
|
5
|
|
||
Undesignated
|
|
Accounts receivable - Other
|
|
2
|
|
2
|
|
|
1
|
|
||
Undesignated
|
|
Other accrued liabilities
|
|
2
|
|
1
|
|
|
3
|
|
||
Currency swaps
|
|
|
|
|
|
|
|
|
||||
Cash flow hedges
|
|
Other noncurrent liabilities
|
|
2
|
|
118
|
|
|
177
|
|
|
2018
|
|
2017
|
||||||||||||
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Senior notes
|
$
|
1,500
|
|
|
$
|
1,442
|
|
|
$
|
1,500
|
|
|
$
|
1,592
|
|
Term Facility
|
265
|
|
|
265
|
|
|
275
|
|
|
275
|
|
||||
Other indebtedness*
|
28
|
|
|
23
|
|
|
29
|
|
|
22
|
|
||||
Total
|
$
|
1,793
|
|
|
$
|
1,730
|
|
|
$
|
1,804
|
|
|
$
|
1,889
|
|
*
|
The carrying value includes the unamortized portion of a fair value adjustment related to a terminated interest rate swap at both dates. The carrying value and fair value also include a financial liability associated with certain build-to-suit lease arrangements at December 31, 2017.
|
Underlying Financial Instrument
|
|
Derivative Financial Instrument
|
|||||||||||||||||||||
Description
|
|
Type
|
|
Face Amount
|
|
Rate
|
|
Designated Notional Amount
|
|
Traded Amount
|
|
Inflow Rate
|
|
Outflow Rate
|
|||||||||
June 2026 Notes
|
|
Payable
|
|
$
|
375
|
|
|
6.50
|
%
|
|
$
|
375
|
|
|
€
|
338
|
|
|
6.50
|
%
|
|
5.14
|
%
|
April 2025 Notes
|
|
Payable
|
|
$
|
400
|
|
|
5.75
|
%
|
|
$
|
400
|
|
|
€
|
371
|
|
|
5.75
|
%
|
|
3.85
|
%
|
Luxembourg Intercompany Notes
|
|
Receivable
|
|
€
|
281
|
|
|
3.91
|
%
|
|
€
|
281
|
|
|
$
|
300
|
|
|
6.00
|
%
|
|
3.91
|
%
|
|
|
|
|
Notional Amount (U.S. Dollar Equivalent)
|
||||||||||||
Functional Currency
|
|
Traded Currency
|
|
Designated as
Cash Flow
Hedges
|
|
Undesignated
|
|
Total
|
|
Maturity
|
||||||
U.S. dollar
|
|
Swiss franc, Mexican peso, euro
|
|
$
|
142
|
|
|
$
|
607
|
|
|
$
|
749
|
|
|
Mar-20
|
Euro
|
|
U.S. dollar, Canadian dollar, Hungarian forint, British pound, Swiss franc, Indian rupee, Russian ruble, Chinese renminbi
|
|
55
|
|
|
10
|
|
|
65
|
|
|
Mar-20
|
|||
British pound
|
|
U.S. dollar, euro
|
|
3
|
|
|
|
|
|
3
|
|
|
Nov-19
|
|||
Swedish krona
|
|
Euro, U.S. dollar
|
|
17
|
|
|
|
|
|
17
|
|
|
Dec-19
|
|||
South African rand
|
|
U.S. dollar, euro, Thai baht
|
|
11
|
|
|
1
|
|
|
12
|
|
|
Nov-19
|
|||
Canadian dollar
|
|
U.S. dollar
|
|
23
|
|
|
|
|
|
23
|
|
|
Feb-20
|
|||
Thai baht
|
|
U.S. dollar, Australian dollar
|
|
31
|
|
|
1
|
|
|
32
|
|
|
Nov-19
|
|||
Brazilian real
|
|
U.S. dollar, euro
|
|
28
|
|
|
42
|
|
|
70
|
|
|
Dec-19
|
|||
Indian rupee
|
|
U.S. dollar, British pound, euro
|
|
|
|
|
36
|
|
|
36
|
|
|
Mar-20
|
|||
Total forward contracts
|
|
|
|
310
|
|
|
697
|
|
|
1,007
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. dollar
|
|
Euro
|
|
322
|
|
|
|
|
|
322
|
|
|
Sep-23
|
|||
Euro
|
|
U.S. dollar
|
|
775
|
|
|
|
|
|
775
|
|
|
Jun-26
|
|||
Total currency swaps
|
|
|
|
1,097
|
|
|
—
|
|
|
1,097
|
|
|
|
|||
Total currency derivatives
|
|
|
|
$
|
1,407
|
|
|
$
|
697
|
|
|
$
|
2,104
|
|
|
|
|
|
Derivatives in Cash Flow Hedging Relationships
|
||||||||||
|
|
Forward Contracts
|
|
Cross-Currency Swaps
|
|
Total Cash Flow Hedges
|
||||||
Balance in AOCI at December 31, 2017, before tax
|
|
$
|
(4
|
)
|
|
$
|
(64
|
)
|
|
$
|
(68
|
)
|
Gain (loss) recorded in OCI
|
|
7
|
|
|
59
|
|
|
66
|
|
|||
(Gain) loss reclassified from AOCI to the consolidated statement of operations
|
|
(1
|
)
|
|
(55
|
)
|
|
(56
|
)
|
|||
Balance in AOCI at December 31, 2018, before tax
|
|
$
|
2
|
|
|
(60
|
)
|
|
$
|
(58
|
)
|
|
|
Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
|
||||||||||
|
|
2018
|
||||||||||
Derivatives Designated as Cash Flow Hedges
|
|
Net sales
|
|
Cost of sales
|
|
Other income (expense), net
|
||||||
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded
|
|
$
|
8,143
|
|
|
$
|
6,986
|
|
|
$
|
(29
|
)
|
(Gain) or loss on cash flow hedging relationships
|
|
|
|
|
|
|
||||||
Foreign currency forwards
|
|
|
|
|
|
|
||||||
Amount of (gain) loss reclassified from AOCI into income
|
|
|
|
(1
|
)
|
|
|
|||||
Cross-currency swaps
|
|
|
|
|
|
|
||||||
Amount of (gain) loss reclassified from AOCI into income
|
|
|
|
|
|
(55
|
)
|
2018
|
|
|
|
|
||
Derivatives Not Designated as Hedging Instruments
|
|
Amount of Gain (Loss) Recognized in Income
|
|
Location of Gain or (Loss) Recognized in Income
|
||
Foreign currency forward contracts
|
|
$
|
(5
|
)
|
|
Cost of sales
|
Foreign currency forward contracts
|
|
(5
|
)
|
|
Other income (expense), net
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
Lease commitments
|
$
|
57
|
|
|
$
|
41
|
|
|
$
|
35
|
|
|
$
|
27
|
|
|
$
|
21
|
|
|
$
|
64
|
|
|
$
|
245
|
|
|
2018
|
|
2017
|
|
2016
|
Rent expense
|
$67
|
|
$61
|
|
$50
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, beginning of period
|
$
|
76
|
|
|
$
|
66
|
|
|
$
|
56
|
|
Acquisitions
|
|
|
|
6
|
|
|
|
|
|||
Amounts accrued for current period sales
|
37
|
|
|
32
|
|
|
25
|
|
|||
Adjustments of prior estimates
|
(1
|
)
|
|
11
|
|
|
26
|
|
|||
Settlements of warranty claims
|
(35
|
)
|
|
(42
|
)
|
|
(41
|
)
|
|||
Currency impact
|
(2
|
)
|
|
3
|
|
|
|
|
|||
Balance, end of period
|
$
|
75
|
|
|
$
|
76
|
|
|
$
|
66
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current
|
|
|
|
|
|
|
|
|
|||
U.S. federal and state
|
$
|
14
|
|
|
$
|
6
|
|
|
$
|
(18
|
)
|
Non-U.S.
|
128
|
|
|
98
|
|
|
74
|
|
|||
Total current
|
142
|
|
|
104
|
|
|
56
|
|
|||
|
|
|
|
|
|
||||||
Deferred
|
|
|
|
|
|
|
|
|
|||
U.S. federal and state
|
(47
|
)
|
|
164
|
|
|
(497
|
)
|
|||
Non-U.S.
|
(17
|
)
|
|
15
|
|
|
17
|
|
|||
Total deferred
|
(64
|
)
|
|
179
|
|
|
(480
|
)
|
|||
Total expense (benefit)
|
$
|
78
|
|
|
$
|
283
|
|
|
$
|
(424
|
)
|
|
2018
|
|
2017
|
|
2016
|
||||||
U.S. operations
|
$
|
26
|
|
|
$
|
60
|
|
|
$
|
(56
|
)
|
Non-U.S. operations
|
468
|
|
|
320
|
|
|
271
|
|
|||
Earnings before income taxes
|
$
|
494
|
|
|
$
|
380
|
|
|
$
|
215
|
|
|
2018
|
|
2017
|
|
2016
|
|||
U.S. federal income tax rate
|
21
|
%
|
|
35
|
%
|
|
35
|
%
|
Adjustments resulting from:
|
|
|
|
|
|
|
|
|
State and local income taxes, net of federal benefit
|
1
|
|
|
1
|
|
|
5
|
|
Non-U.S. income (expense)
|
5
|
|
|
(11
|
)
|
|
(15
|
)
|
Credits and tax incentives
|
(18
|
)
|
|
(16
|
)
|
|
(5
|
)
|
U.S. tax on non-U.S. earnings
|
3
|
|
|
12
|
|
|
(19
|
)
|
Intercompany sale of certain operating assets
|
1
|
|
|
(6
|
)
|
|
5
|
|
Settlement and return adjustments
|
6
|
|
|
(2
|
)
|
|
14
|
|
Enacted change in tax laws
|
1
|
|
|
49
|
|
|
4
|
|
Miscellaneous items
|
|
|
|
1
|
|
|
2
|
|
Valuation allowance adjustments
|
(4
|
)
|
|
11
|
|
|
(222
|
)
|
Effective income tax rate
|
16
|
%
|
|
74
|
%
|
|
(196
|
)%
|
|
2018
|
|
2017
|
||||
Net operating loss carryforwards
|
$
|
255
|
|
|
$
|
319
|
|
Postretirement benefits, including pensions
|
98
|
|
|
119
|
|
||
Research and development costs
|
94
|
|
|
85
|
|
||
Expense accruals
|
75
|
|
|
78
|
|
||
Other tax credits recoverable
|
232
|
|
|
122
|
|
||
Capital loss carryforwards
|
40
|
|
|
43
|
|
||
Inventory reserves
|
13
|
|
|
16
|
|
||
Postemployment and other benefits
|
6
|
|
|
5
|
|
||
Total
|
813
|
|
|
787
|
|
||
Valuation allowances
|
(281
|
)
|
|
(301
|
)
|
||
Deferred tax assets
|
532
|
|
|
486
|
|
||
|
|
|
|
||||
Unremitted earnings
|
(1
|
)
|
|
(30
|
)
|
||
Intangibles
|
(11
|
)
|
|
(22
|
)
|
||
Depreciation
|
(44
|
)
|
|
(60
|
)
|
||
Other
|
(59
|
)
|
|
(13
|
)
|
||
Deferred tax liabilities
|
(115
|
)
|
|
(125
|
)
|
||
Net deferred tax assets
|
$
|
417
|
|
|
$
|
361
|
|
|
Deferred
Tax
Asset
|
|
Valuation
Allowance
|
|
Carryforward
Period
|
|
Earliest
Year of
Expiration
|
||||
Net operating losses
|
|
|
|
|
|
|
|
|
|
||
U.S. federal
|
$
|
76
|
|
|
$
|
—
|
|
|
20
|
|
2029
|
U.S. state
|
88
|
|
|
(41
|
)
|
|
Various
|
|
2019
|
||
Brazil
|
20
|
|
|
(20
|
)
|
|
Unlimited
|
|
|
||
France
|
8
|
|
|
|
|
|
Unlimited
|
|
|
||
Australia
|
30
|
|
|
(30
|
)
|
|
Unlimited
|
|
|
||
Italy
|
6
|
|
|
(6
|
)
|
|
Unlimited
|
|
|
||
Germany
|
5
|
|
|
(5
|
)
|
|
Unlimited
|
|
|
||
U.K.
|
3
|
|
|
(3
|
)
|
|
Unlimited
|
|
|
||
Canada
|
16
|
|
|
(15
|
)
|
|
20
|
|
2026
|
||
Netherlands
|
1
|
|
|
|
|
9
|
|
2027
|
|||
China
|
2
|
|
|
(2
|
)
|
|
5
|
|
2020
|
||
Total
|
$
|
255
|
|
|
$
|
(122
|
)
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, beginning of period
|
$
|
119
|
|
|
$
|
117
|
|
|
$
|
87
|
|
Decrease related to expiration of statute of limitations
|
(4
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|||
Decrease related to prior years tax positions
|
(15
|
)
|
|
(25
|
)
|
|
(1
|
)
|
|||
Increase related to prior years tax positions
|
8
|
|
|
15
|
|
|
28
|
|
|||
Increase related to current year tax positions
|
10
|
|
|
15
|
|
|
8
|
|
|||
Decrease related to settlements
|
(11
|
)
|
|
|
|
|
|
|
|||
Balance, end of period
|
$
|
107
|
|
|
$
|
119
|
|
|
$
|
117
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Non-service cost components of pension and OPEB costs
|
$
|
(15
|
)
|
|
$
|
(7
|
)
|
|
$
|
4
|
|
Government grants and incentives
|
12
|
|
|
7
|
|
|
8
|
|
|||
Foreign exchange loss
|
(12
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|||
Strategic transaction expenses, net of transaction breakup fee income
|
(18
|
)
|
|
(25
|
)
|
|
(13
|
)
|
|||
Insurance and other recoveries
|
|
|
|
|
|
|
10
|
|
|||
Gain on sale of marketable securities
|
|
|
|
|
|
|
7
|
|
|||
Amounts attributable to previously divested/closed operations
|
|
|
|
3
|
|
|
|
|
|||
Other, net
|
4
|
|
|
9
|
|
|
9
|
|
|||
Other income (expense), net
|
(29
|
)
|
|
(16
|
)
|
|
22
|
|
2018
|
|
Light Vehicle
|
|
Commercial Vehicle
|
|
Off-Highway
|
|
Power Technologies
|
|
Total
|
||||||||||
North America
|
|
$
|
2,477
|
|
|
$
|
908
|
|
|
$
|
141
|
|
|
$
|
580
|
|
|
$
|
4,106
|
|
Europe
|
|
347
|
|
|
271
|
|
|
1,423
|
|
|
443
|
|
|
2,484
|
|
|||||
South America
|
|
186
|
|
|
308
|
|
|
34
|
|
|
18
|
|
|
546
|
|
|||||
Asia Pacific
|
|
565
|
|
|
125
|
|
|
246
|
|
|
71
|
|
|
1,007
|
|
|||||
Total
|
|
$
|
3,575
|
|
|
$
|
1,612
|
|
|
$
|
1,844
|
|
|
$
|
1,112
|
|
|
$
|
8,143
|
|
2018
|
|
External
Sales
|
|
Inter-
Segment
Sales
|
|
Segment
EBITDA
|
|
Capital
Spend
|
|
Depreciation
|
|
Net
Assets
|
||||||||||||
Light Vehicle
|
|
$
|
3,575
|
|
|
$
|
133
|
|
|
$
|
398
|
|
|
$
|
195
|
|
|
$
|
124
|
|
|
$
|
1,264
|
|
Commercial Vehicle
|
|
1,612
|
|
|
107
|
|
|
146
|
|
|
27
|
|
|
38
|
|
|
577
|
|
||||||
Off-Highway
|
|
1,844
|
|
|
12
|
|
|
285
|
|
|
36
|
|
|
43
|
|
|
709
|
|
||||||
Power Technologies
|
|
1,112
|
|
|
23
|
|
|
149
|
|
|
36
|
|
|
30
|
|
|
376
|
|
||||||
Eliminations and other
|
|
|
|
|
(275
|
)
|
|
|
|
|
31
|
|
|
25
|
|
|
83
|
|
||||||
Total
|
|
$
|
8,143
|
|
|
$
|
—
|
|
|
$
|
978
|
|
|
$
|
325
|
|
|
$
|
260
|
|
|
$
|
3,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Light Vehicle
|
|
$
|
3,172
|
|
|
$
|
130
|
|
|
$
|
359
|
|
|
$
|
279
|
|
|
$
|
88
|
|
|
$
|
1,192
|
|
Commercial Vehicle
|
|
1,412
|
|
|
97
|
|
|
116
|
|
|
31
|
|
|
41
|
|
|
575
|
|
||||||
Off-Highway
|
|
1,521
|
|
|
4
|
|
|
212
|
|
|
32
|
|
|
40
|
|
|
698
|
|
||||||
Power Technologies
|
|
1,104
|
|
|
17
|
|
|
168
|
|
|
32
|
|
|
29
|
|
|
380
|
|
||||||
Eliminations and other
|
|
|
|
|
(248
|
)
|
|
|
|
|
19
|
|
|
22
|
|
|
124
|
|
||||||
Total
|
|
$
|
7,209
|
|
|
$
|
—
|
|
|
$
|
855
|
|
|
$
|
393
|
|
|
$
|
220
|
|
|
$
|
2,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Light Vehicle
|
|
$
|
2,607
|
|
|
$
|
113
|
|
|
$
|
279
|
|
|
$
|
208
|
|
|
$
|
71
|
|
|
$
|
887
|
|
Commercial Vehicle
|
|
1,254
|
|
|
83
|
|
|
96
|
|
|
34
|
|
|
33
|
|
|
573
|
|
||||||
Off-Highway
|
|
909
|
|
|
3
|
|
|
129
|
|
|
21
|
|
|
20
|
|
|
267
|
|
||||||
Power Technologies
|
|
1,056
|
|
|
14
|
|
|
158
|
|
|
32
|
|
|
29
|
|
|
330
|
|
||||||
Eliminations and other
|
|
|
|
|
(213
|
)
|
|
|
|
|
27
|
|
|
20
|
|
|
308
|
|
||||||
Total
|
|
$
|
5,826
|
|
|
$
|
—
|
|
|
$
|
662
|
|
|
$
|
322
|
|
|
$
|
173
|
|
|
$
|
2,365
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Segment EBITDA
|
$
|
978
|
|
|
$
|
855
|
|
|
$
|
662
|
|
Corporate expense and other items, net
|
(21
|
)
|
|
(20
|
)
|
|
(2
|
)
|
|||
Depreciation
|
(260
|
)
|
|
(220
|
)
|
|
(173
|
)
|
|||
Amortization of intangibles
|
(10
|
)
|
|
(13
|
)
|
|
(9
|
)
|
|||
Non-service cost components of pension and OPEB costs
|
(15
|
)
|
|
|
|
|
|
|
|||
Restructuring charges, net
|
(25
|
)
|
|
(14
|
)
|
|
(36
|
)
|
|||
Stock compensation expense
|
(16
|
)
|
|
(23
|
)
|
|
(17
|
)
|
|||
Strategic transaction expenses, net of transaction breakup fee income
|
(18
|
)
|
|
(25
|
)
|
|
(13
|
)
|
|||
Acquisition related inventory adjustments
|
|
|
|
(14
|
)
|
|
|
|
|||
Other items
|
(17
|
)
|
|
(11
|
)
|
|
(2
|
)
|
|||
Gain (loss) on disposal group held for sale
|
3
|
|
|
(27
|
)
|
|
|
|
|||
Loss on sale of subsidiaries
|
|
|
|
|
|
|
(80
|
)
|
|||
Impairment of indefinite-lived intangible asset
|
(20
|
)
|
|
|
|
|
|
|
|||
Distressed supplier costs
|
|
|
|
|
|
(1
|
)
|
||||
Amounts attributable to previously divested/closed operations
|
|
|
2
|
|
|
3
|
|
||||
Earnings before interest and income taxes
|
579
|
|
|
490
|
|
|
332
|
|
|||
Loss on extinguishment of debt
|
|
|
|
(19
|
)
|
|
(17
|
)
|
|||
Interest expense
|
96
|
|
|
102
|
|
|
113
|
|
|||
Interest income
|
11
|
|
|
11
|
|
|
13
|
|
|||
Earnings before income taxes
|
494
|
|
|
380
|
|
|
215
|
|
|||
Income tax expense (benefit)
|
78
|
|
|
283
|
|
|
(424
|
)
|
|||
Equity in earnings of affiliates
|
24
|
|
|
19
|
|
|
14
|
|
|||
Net income
|
$
|
440
|
|
|
$
|
116
|
|
|
$
|
653
|
|
|
2018
|
|
2017
|
||||
Segment net assets
|
$
|
3,009
|
|
|
$
|
2,969
|
|
Accounts payable and other current liabilities
|
1,672
|
|
|
1,604
|
|
||
Other current and long-term assets
|
1,237
|
|
|
1,071
|
|
||
Consolidated total assets
|
$
|
5,918
|
|
|
$
|
5,644
|
|
|
Net Sales
|
|
Long-Lived Assets
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
3,613
|
|
|
$
|
3,209
|
|
|
$
|
2,695
|
|
|
$
|
860
|
|
|
$
|
828
|
|
|
$
|
634
|
|
Other North America
|
493
|
|
|
479
|
|
|
433
|
|
|
87
|
|
|
82
|
|
|
80
|
|
||||||
Total
|
4,106
|
|
|
3,688
|
|
|
3,128
|
|
|
947
|
|
|
910
|
|
|
714
|
|
||||||
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Italy
|
971
|
|
|
762
|
|
|
499
|
|
|
138
|
|
|
122
|
|
|
58
|
|
||||||
Germany
|
513
|
|
|
473
|
|
|
377
|
|
|
133
|
|
|
149
|
|
|
98
|
|
||||||
Other Europe
|
1,000
|
|
|
919
|
|
|
740
|
|
|
241
|
|
|
211
|
|
|
157
|
|
||||||
Total
|
2,484
|
|
|
2,154
|
|
|
1,616
|
|
|
512
|
|
|
482
|
|
|
313
|
|
||||||
South America
|
546
|
|
|
500
|
|
|
338
|
|
|
129
|
|
|
153
|
|
|
172
|
|
||||||
Asia Pacific
|
1,007
|
|
|
867
|
|
|
744
|
|
|
262
|
|
|
262
|
|
|
214
|
|
||||||
Total
|
$
|
8,143
|
|
|
$
|
7,209
|
|
|
$
|
5,826
|
|
|
$
|
1,850
|
|
|
$
|
1,807
|
|
|
$
|
1,413
|
|
|
Ownership
Percentage |
|
Investment
|
||
Dongfeng Dana Axle Co., Ltd. (DDAC)
|
50%
|
|
$
|
94
|
|
Prestolite E-Propulsion Systems Limited (PEPS)
|
50%
|
|
46
|
|
|
Bendix Spicer Foundation Brake, LLC
|
20%
|
|
46
|
|
|
Axles India Limited
|
48%
|
|
9
|
|
|
Taiway Ltd
|
28%
|
|
5
|
|
|
All others as a group
|
|
|
6
|
|
|
Investments in equity affiliates
|
|
|
206
|
|
|
Investment in affiliates carried at cost
|
|
|
2
|
|
|
Investment in affiliates
|
|
|
$
|
208
|
|
|
|
|
|
|
|
|
|
2018
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Net sales
|
|
$
|
2,138
|
|
|
$
|
2,054
|
|
|
$
|
1,978
|
|
|
$
|
1,973
|
|
Gross margin
|
|
$
|
307
|
|
|
$
|
308
|
|
|
$
|
286
|
|
|
$
|
256
|
|
Net income
|
|
$
|
111
|
|
|
$
|
127
|
|
|
$
|
96
|
|
|
$
|
106
|
|
Net income attributable to the parent company
|
|
$
|
108
|
|
|
$
|
124
|
|
|
$
|
95
|
|
|
$
|
100
|
|
Net income per share available to parent company common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.74
|
|
|
$
|
0.85
|
|
|
$
|
0.66
|
|
|
$
|
0.69
|
|
Diluted
|
|
$
|
0.73
|
|
|
$
|
0.85
|
|
|
$
|
0.65
|
|
|
$
|
0.69
|
|
2017
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Net sales
|
|
$
|
1,701
|
|
|
$
|
1,840
|
|
|
$
|
1,831
|
|
|
$
|
1,837
|
|
Gross margin
|
|
$
|
264
|
|
|
$
|
277
|
|
|
$
|
269
|
|
|
$
|
256
|
|
Net income (loss)
|
|
$
|
80
|
|
|
$
|
73
|
|
|
$
|
73
|
|
|
$
|
(110
|
)
|
Net income (loss) attributable to the parent company
|
|
$
|
75
|
|
|
$
|
71
|
|
|
$
|
69
|
|
|
$
|
(104
|
)
|
Net income (loss) per share available to parent company common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.52
|
|
|
$
|
0.48
|
|
|
$
|
0.47
|
|
|
$
|
(0.74
|
)
|
Diluted
|
|
$
|
0.51
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
(0.74
|
)
|
|
Balance at
beginning
of period
|
|
Amounts
charged
(credited)
to income
|
|
Allowance
utilized
|
|
Adjustments
arising
from change
in currency
exchange rates
and other items
|
|
Balance at
end of
period
|
||||||||||
Accounts Receivable - Allowance for Doubtful Accounts
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
$
|
8
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
9
|
|
2017
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
2016
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Inventory Reserves
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
$
|
53
|
|
|
$
|
15
|
|
|
$
|
(11
|
)
|
|
$
|
(6
|
)
|
|
$
|
51
|
|
2017
|
$
|
51
|
|
|
$
|
10
|
|
|
$
|
(11
|
)
|
|
$
|
3
|
|
|
$
|
53
|
|
2016
|
$
|
46
|
|
|
$
|
19
|
|
|
$
|
(13
|
)
|
|
$
|
(1
|
)
|
|
$
|
51
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred Tax Assets - Valuation Allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
$
|
301
|
|
|
$
|
(31
|
)
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
281
|
|
2017
|
$
|
285
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
$
|
301
|
|
2016
|
$
|
662
|
|
|
$
|
(483
|
)
|
|
$
|
—
|
|
|
$
|
106
|
|
|
$
|
285
|
|
(Shares in millions)
Plan Category
|
|
Number of Securities to be Issued Upon Exercise of Outstanding Options,
Warrants and Rights
(1)
|
|
Weighted Average
Exercise Price of Number of Securities to be Issued Upon Exercise of Outstanding Options,
Warrants and Rights
(2)
|
|
Number of Securities
Remaining Available for Future Issuance
Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
|
||||
Equity compensation plans
approved by security holders
|
|
3.1
|
|
|
$
|
15.33
|
|
|
5.6
|
|
Equity compensation plans not
approved by security holders
|
|
|
|
|
|
|
||||
Total
|
|
3.1
|
|
|
$
|
15.33
|
|
|
5.6
|
|
(1)
|
In addition to stock options, restricted stock units and performance shares have been awarded under Dana's equity compensation plans and were outstanding at
December 31, 2018
.
|
(2)
|
Calculated without taking into account the 2.5 shares of common stock subject to outstanding restricted stock and performance share units that become issuable as those units vest since they have no exercise price and no cash consideration or other payment is required for such shares.
|
|
|
10-K
Pages
|
(a) List of documents filed as a part of this report:
|
|
|
1.
|
Consolidated Financial Statements:
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
Consolidated Statement of Operations
|
|
|
Consolidated Statement of Comprehensive Income
|
|
|
Consolidated Balance Sheet
|
|
|
Consolidated Statement of Cash Flows
|
|
|
Consolidated Statement of Stockholders' Equity
|
|
|
Notes to the Consolidated Financial Statements
|
|
2.
|
Quarterly Results (Unaudited)
|
|
3.
|
Financial Statement Schedule:
|
|
|
Valuation and Qualifying Accounts and Reserves (Schedule II)
|
|
|
All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.
|
|
4.
|
Exhibits
|
|
|
|
No.
|
|
Description
|
|
|
2.1*
|
|
|
|
|
3.1
|
|
|
|
|
3.2
|
|
|
|
|
4.1
|
|
|
|
|
4.2
|
|
|
|
|
4.3
|
|
|
|
|
4.4
|
|
|
|
|
4.5
|
|
|
|
|
4.6
|
|
|
|
|
10.1**
|
|
|
|
DANA INCORPORATED
|
|
|
|
|
|
Date:
|
February 15, 2019
|
By:
|
/s/ James K. Kamsickas
|
|
|
|
James K. Kamsickas
|
|
|
|
President and Chief Executive Officer
|
Signature
|
|
Title
|
|
|
|
/s/ James K. Kamsickas
|
|
President and Chief Executive Officer
|
James K. Kamsickas
|
|
(Principal Executive Officer)
|
|
|
|
/s/ Jonathan M. Collins
|
|
Executive Vice President and Chief Financial Officer
|
Jonathan M. Collins
|
|
(Principal Financial Officer)
|
|
|
|
/s/ James D. Kellett
|
|
Vice President and Chief Accounting Officer
|
James D. Kellett
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(Principal Accounting Officer)
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/s/ Rachel A. Gonzalez*
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Director
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Rachel A. Gonzalez
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/s/ Virginia A. Kamsky*
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Director
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Virginia A. Kamsky
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/s/ Michael J. Mack, Jr.*
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Director
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Michael J. Mack, Jr.
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/s/ Raymond E. Mabus, Jr.*
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Director
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Raymond E. Mabus, Jr.
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/s/ R. Bruce McDonald*
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Director
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R. Bruce McDonald
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/s/ Diarmuid B. O'Connell*
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Director
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Diarmuid B. O'Connell
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/s/ Keith E. Wandell*
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Non-Executive Chairman and Director
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Keith E. Wandell
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*By:
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/s/ Douglas H. Liedberg
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Douglas H. Liedberg, Attorney-in-Fact
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*
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Subsidiaries not shown by name in the above list, if considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary.
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/s/ PricewaterhouseCoopers LLP
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Toledo, Ohio
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February 15, 2019
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/s/ Rachel A. Gonzalez
Rachel A. Gonzalez
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/s/ Diarmuid B. O'Connell
Diarmuid B. O'Connell
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/s/ Virginia A. Kamsky
Virginia A. Kamsky
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/s/ Keith E. Wandell
Keith E. Wandell
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/s/ Michael J. Mack, Jr.
Michael J. Mack, Jr.
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/s/ James K. Kamsickas
James K. Kamsickas
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/s/ Raymond E. Mabus, Jr.
Raymond E. Mabus, Jr.
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/s/ Jonathan M. Collins
Jonathan M. Collins
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/s/ R. Bruce McDonald
R. Bruce McDonald
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/s/ James D. Kellett
James D. Kellett
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ James K. Kamsickas
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James K. Kamsickas
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President and Chief Executive Officer
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Jonathan M. Collins
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Jonathan M. Collins
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Executive Vice President and Chief Financial Officer
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Dana as of the dates and for the periods expressed in the Report.
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/s/ James K. Kamsickas
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James K. Kamsickas
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President and Chief Executive Officer
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/s/ Jonathan M. Collins
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Jonathan M. Collins
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Executive Vice President and Chief Financial Officer
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