Part I [Business](index=4&type=section&id=Item%201.%20Business) Visteon is a global automotive technology company specializing in cockpit electronics and connected car solutions for major OEMs, operating through a single Electronics segment - Visteon is a global automotive technology company focused on creating digital, electric, and autonomous solutions for major automotive customers like BMW, Ford, GM, and Mercedes-Benz[11](index=11&type=chunk) - The company's business is aligned with major automotive industry trends, including the growth of electronic content, electric vehicles, ADAS, and vehicle standardization[12](index=12&type=chunk) Key Product Offerings | Product Category | Description | | :--- | :--- | | Instrument Clusters | Full range from analog to all-digital, 3D display-based devices | | Information Displays | High-performance displays including large, curved multi-display modules and microZone™ technology | | Audio/Infotainment | Android-based systems with seamless connectivity and AI-based voice assistants | | Battery Management Systems (BMS) | Configurable systems supporting both wired and wireless battery sensing | | SmartCore™ Domain Controller | Integrates infotainment, cluster, and other features on a single multi-core chip | Sales Concentration - Ford Motor Company | Year | Percentage of Total Net Sales | | :--- | :--- | | 2022 | 22% | | 2021 | 22% | | 2020 | 22% | - The company's workforce consists of approximately **10,000 employees**, with **39% being female** globally as of December 31, 2022, and Visteon has a multi-year roadmap for ESG initiatives[33](index=33&type=chunk)[36](index=36&type=chunk)[41](index=41&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) Visteon faces significant risks from supply chain disruptions like the semiconductor shortage, industry cyclicality, customer dependency, and cybersecurity threats - The company is highly dependent on single or limited sources for certain components, including **semiconductor chips**, and expects shortages to persist into 2023, which could impact production schedules and financial results[52](index=52&type=chunk) - Substantial international operations expose the company to risks such as trade tariffs, currency fluctuations, and political instability, with significant investments in Chinese joint ventures[58](index=58&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - The automotive industry's cyclical nature and significant declines in customer production levels can harm profitability, and the company is highly dependent on **Ford**, which accounted for **22% of sales** in 2022, 2021, and 2020[66](index=66&type=chunk)[71](index=71&type=chunk) - The company faces inherent risks of warranty claims, product liability, and recalls, which could have materially adverse effects, while increasing software content elevates **cybersecurity risks**[74](index=74&type=chunk) - The company's ability to fully utilize its **U.S. net operating losses (NOLs)** and other tax attributes could be limited if a change of ownership under IRC Sections 382 and 383 were to occur[82](index=82&type=chunk) - A disruption in IT systems due to a **cyberattack** could result in business disruption, theft of intellectual property, and unauthorized access to personal information, adversely affecting the company's reputation and financial performance[85](index=85&type=chunk) [Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[89](index=89&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) Visteon operates 30 leased technical centers and 14 manufacturing facilities globally, with the majority of these facilities being leased - As of December 31, 2022, the Company owned or leased **30 corporate offices**, technical/engineering centers, and customer service centers in 13 countries (all leased) and **14 manufacturing/assembly facilities** in nine countries (11 leased, 3 owned)[89](index=89&type=chunk)[90](index=90&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, with detailed information provided in Note 18 of the consolidated financial statements - Details regarding legal proceedings are discussed in Note 18, "Commitments and Contingencies" to the consolidated financial statements in Part II, Item 8 of this Form 10-K[90](index=90&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - None[90](index=90&type=chunk) [Executive Officers](index=22&type=section&id=Item%204A.%20Executive%20Officers) This section provides information about the executive officers of Visteon Corporation as of February 1, 2023 Executive Officers as of February 1, 2023 | Name | Age | Position | | :--- | :--- | :--- | | Sachin S. Lawande | 55 | Director, President and Chief Executive Officer | | Jerome J. Rouquet | 55 | Senior Vice President and Chief Financial Officer | | Abigail S. Fleming | 41 | Vice President and Chief Accounting Officer | | Brett D. Pynnonen | 54 | Senior Vice President and Chief Legal Officer | | Joao Paulo Ribeiro | 53 | Senior Vice President, Manufacturing, Supply Chain, and Purchasing | | Kristin E. Trecker | 57 | Senior Vice President and Chief People Officer | | Robert R. Vallance | 62 | Senior Vice President, Global Customer Business Groups, New Technology Product Lines, and General Manager APAC Region | Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20For%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Visteon's common stock (NASDAQ: VC) performance is presented, noting no dividends were paid in 2021-2022 due to credit agreement limits - **No dividends were paid** on common stock during the years ended December 31, 2022 and 2021, as the company's credit agreements limit cash payments for dividends[102](index=102&type=chunk) Stock Performance Comparison (2017-2022) | | Dec 31, 2017 | Dec 31, 2018 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Visteon Corporation | $100.00 | $48.17 | $69.19 | $100.30 | $88.81 | $104.55 | | Dow Jones U.S. Auto Parts Index | $100.00 | $68.30 | $85.56 | $99.27 | $118.94 | $87.05 | | S&P 500 | $100.00 | $93.76 | $120.84 | $140.49 | $178.27 | $143.61 | [Selected Financial Data](index=25&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable as the company has not provided selected financial data - None[109](index=109&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales rose to **$3.76 billion** in 2022, driven by higher volumes and pricing, with strong liquidity and **$6 billion** in new business wins [Executive Summary](index=26&type=section&id=Executive%20Summary) The company's strategy drove 2022 sales to **$3.76 billion** and Adjusted EBITDA to **$348 million**, securing **$6 billion** in new business wins - Strategic priorities include technology innovation in cockpit electronics, achieving long-term growth, and enhancing shareholder returns while maintaining a strong balance sheet[112](index=112&type=chunk) 2022 Company Highlights | Metric | Value | Note | | :--- | :--- | :--- | | Net Sales | $3,756 million | 40% YoY increase (excluding currency) | | Adjusted EBITDA | $348 million | 9.3% of sales | | New Products Launched | 45 | - | | New Business Wins | $6 billion | Strong performance across all product categories | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net sales increased by **$983 million** to **$3.76 billion** in 2022, boosting gross margin and net income, with Adjusted EBITDA rising to **$348 million** Consolidated Results of Operations (2022 vs. 2021) | (In millions) | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Net sales | $3,756 | $2,773 | $983 | | Gross margin | $368 | $254 | $114 | | Net income attributable to Visteon | $124 | $41 | $83 | | Adjusted EBITDA | $348 | $228 | $120 | Net Sales Change Analysis (2021 to 2022) | (In millions) | Amount | Description | | :--- | :--- | :--- | | 2021 Net Sales | $2,773 | - | | Volume, mix, and net new business | +$722 | Increased customer production and market outperformance | | Customer pricing, net | +$395 | Primarily customer recoveries | | Currency | -$136 | Unfavorable impact from EUR, CNY, JPY | | 2022 Net Sales | $3,756 | - | - Cost of sales increased by **$869 million** in 2022, primarily due to higher volumes and **$390 million** in unfavorable cost performance related to supply chain and material costs from the semiconductor shortage[120](index=120&type=chunk) - In 2022, the company closed its Russian facility due to the geopolitical situation, resulting in a **$5 million** non-cash impairment charge and a **$3 million** charge for foreign currency translation losses[123](index=123&type=chunk)[127](index=127&type=chunk) Adjusted EBITDA Reconciliation (2022 vs. 2021) | (In millions) | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Net income attributable to Visteon | $124 | $41 | $83 | | Depreciation and amortization | $108 | $108 | $0 | | Restructuring and impairment | $14 | $14 | $0 | | Provision for income taxes | $45 | $31 | $14 | | Non-cash, stock-based compensation | $26 | $18 | $8 | | Interest expense, net | $10 | $8 | $2 | | Other adjustments | $21 | $8 | $13 | | **Adjusted EBITDA** | **$348** | **$228** | **$120** | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$523 million** in cash and a fully available **$400 million** revolving credit facility as of year-end 2022 - As of December 31, 2022, the company had total cash and equivalents of **$523 million**, with **$356 million** held in jurisdictions outside the U.S[149](index=149&type=chunk) - The company has access to a **$400 million** revolving credit facility, which was fully available as of year-end 2022, and affiliate working capital lines had an additional **$192 million** of availability[148](index=148&type=chunk) Cash Flow Summary (2022 vs. 2021) | (In millions) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided from operating activities | $167 | $58 | | Net cash used by investing activities | ($68) | ($63) | | Net cash used by financing activities | ($9) | ($29) | [Critical Accounting Estimates](index=36&type=section&id=Critical%20Accounting%20Estimates) Key estimates include impairment of long-lived assets, revenue recognition, product warranties, restructuring, pension obligations, and deferred tax asset valuation - Key critical accounting estimates include: Impairment of Long-lived Assets, Revenue Recognition, Product Warranty and Recall, Restructuring, Pension Plans, Income Taxes, and Fair Value Measurements[166](index=166&type=chunk) - In 2022, the company recorded a **$5 million** non-cash impairment charge related to the closure of its Russian facility, and in 2021, a **$9 million** impairment charge was recorded for long-lived assets in Brazil[168](index=168&type=chunk)[169](index=169&type=chunk) - The determination of pension obligations is highly dependent on assumptions for discount rates and the expected long-term rate of return on plan assets, with approximately **$92 million** in unfunded net pension liabilities as of Dec 31, 2022[174](index=174&type=chunk) Pension Assumption Sensitivity (2023 Pretax Expense) | Change in Assumption | Impact on U.S. Pretax Pension Expense | Impact on Non-U.S. Pretax Pension Expense | | :--- | :--- | :--- | | 25 bps decrease in discount rate | Less than -$1 million | Less than -$1 million | | 25 bps increase in discount rate | Less than +$1 million | Less than +$1 million | | 25 bps decrease in expected return on assets | +$1.6 million | Less than +$1 million | | 25 bps increase in expected return on assets | -$1.6 million | Less than -$1 million | [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to foreign currency, interest rate, and commodity price risks, which it manages using derivative instruments for non-speculative purposes - The company's primary market risks are changes in foreign currency exchange rates, interest rates, and commodity prices, which are managed through derivative instruments and operational actions[190](index=190&type=chunk) - Primary foreign currency exposures are to the euro, Chinese renminbi, Brazilian real, Mexican peso, Thai baht, Indian rupee, Japanese yen, and Bulgarian lev[84](index=84&type=chunk) - A hypothetical **10% adverse change** in quoted currency exchange rates would result in a pretax loss of approximately **$21 million** on the fair value of foreign currency derivative financial instruments as of December 31, 2022[193](index=193&type=chunk) [Financial Statements and Supplementary Data](index=43&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2022, reporting net sales of **$3.76 billion** and net income of **$124 million** Consolidated Statements of Operations Highlights | (In millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net sales | $3,756 | $2,773 | $2,548 | | Gross margin | $368 | $254 | $245 | | Net income (loss) attributable to Visteon | $124 | $41 | ($56) | | Diluted earnings (loss) per share | $4.35 | $1.44 | ($2.01) | Consolidated Balance Sheets Highlights | (In millions) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total current assets | $1,710 | $1,424 | | Total assets | $2,450 | $2,234 | | Total current liabilities | $1,035 | $852 | | Total liabilities | $1,676 | $1,618 | | Total equity | $774 | $616 | Consolidated Statements of Cash Flows Highlights | (In millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided from operating activities | $167 | $58 | $168 | | Net cash used by investing activities | ($68) | ($63) | ($98) | | Net cash used by financing activities | ($9) | ($29) | ($58) | [Note 2: Non-Consolidated Affiliates](index=57&type=section&id=NOTE%202.%20Non-Consolidated%20Affiliates) The company's primary non-consolidated affiliate is YFVIC, and in 2022 it incurred **$19 million** in program costs and a **$9 million** settlement charge - The company's investment in its 50%-owned joint venture, Yanfeng Visteon Investment Co., Ltd. (YFVIC), was valued at **$25 million** as of December 31, 2022[268](index=268&type=chunk) - In the fourth quarter of 2022, the company incurred approximately **$19 million** in charges for program management costs and other items associated with a joint venture, recorded within Cost of Sales[275](index=275&type=chunk) - In the second quarter of 2022, a **$9 million** settlement charge related to a one-time contract dispute with a joint venture partner was recorded in Cost of Sales[276](index=276&type=chunk) [Note 3: Restructuring and Impairments](index=59&type=section&id=NOTE%203.%20Restructuring%20and%20Impairments) The company initiated a restructuring plan in 2022, resulting in **$6 million** in costs and a **$5 million** impairment charge for its Russian facility - In 2022, due to the geopolitical situation in Eastern Europe, the company closed its Russian facility, resulting in a **$5 million** non-cash impairment charge and a **$3 million** charge for related foreign currency translation losses[283](index=283&type=chunk) - The company approved a restructuring plan in 2022, mainly impacting Europe, and recorded **$6 million** in restructuring expenses for severance and termination costs[279](index=279&type=chunk) Restructuring Reserve Activity | (In millions) | Amount | | :--- | :--- | | Balance at Dec 31, 2021 | $18 | | Expense | $6 | | Change in estimates | $3 | | Utilization | ($15) | | Foreign currency | ($1) | | **Balance at Dec 31, 2022** | **$11** | [Note 10: Debt](index=65&type=section&id=NOTE%2010.%20Debt) Total debt was **$349 million** at year-end 2022, and the company extended its credit facility maturity to 2027, transitioning from LIBOR to SOFR - On July 19, 2022, the company amended its Credit Agreement, extending the maturity of its Term Facility and Revolving Credit Facility to July 19, 2027, and changing the interest rate base from LIBOR to SOFR[301](index=301&type=chunk) - The company has no outstanding borrowings on its **$400 million** Revolving Credit Facility as of December 31, 2022[305](index=305&type=chunk) Debt Structure as of Dec 31, 2022 | (In millions) | Carrying Value | | :--- | :--- | | Current portion of long-term debt | $13 | | Term facility, net | $336 | | **Total Debt** | **$349** | [Note 11: Employee Benefit Plans](index=67&type=section&id=NOTE%2011.%20Employee%20Benefit%20Plans) The company's pension plans had a net unfunded status of **$92 million** at year-end 2022, with most U.S. and UK plans frozen - The company expects to make contributions of **$5 million** to its non-U.S. defined benefit pension plans during 2023[316](index=316&type=chunk) - Expense for defined contribution plans was approximately **$3 million** in 2022, **$6 million** in 2021, and **$5 million** in 2020[322](index=322&type=chunk) Pension Plan Funded Status (as of Dec 31) | (In millions) | 2022 | 2021 | | :--- | :--- | :--- | | **U.S. Plans** | | | | Benefit Obligation | $603 | $829 | | Plan Assets | $532 | $693 | | Funded Status | ($71) | ($136) | | **Non-U.S. Plans** | | | | Benefit Obligation | $178 | $299 | | Plan Assets | $157 | $258 | | Funded Status | ($21) | ($41) | [Note 12: Stock-Based Compensation](index=70&type=section&id=NOTE%2012.%20Stock-Based%20Compensation) Total stock-based compensation expense was **$27 million** in 2022, with **$29 million** of unrecognized expense remaining to be recognized over 1.7 years - As of December 31, 2022, there was **$29 million** in total unrecognized stock-based compensation expense, which will be recognized over a weighted-average period of approximately 1.7 years[326](index=326&type=chunk)[327](index=327&type=chunk)[332](index=332&type=chunk) Total Stock-Based Compensation Expense | (In millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Performance based share units | $7 | $5 | $6 | | Restricted stock units | $20 | $12 | $10 | | Stock options | $0 | $1 | $2 | | **Total** | **$27** | **$18** | **$18** | [Note 13: Income Taxes](index=74&type=section&id=NOTE%2013.%20Income%20Taxes) The 2022 income tax provision was **$45 million**, and the company maintains a **$1.12 billion** valuation allowance against its deferred tax assets - The company has a valuation allowance of **$1,120 million** against its gross deferred tax assets of **$1,265 million** as of December 31, 2022[351](index=351&type=chunk) - As of December 31, 2022, the company had available U.S. federal net operating loss carryforwards of **$1.4 billion**[351](index=351&type=chunk) - Gross unrecognized tax benefits were **$18 million** at December 31, 2022, and the company is involved in a tax dispute with the Indian Tax Authority[355](index=355&type=chunk)[358](index=358&type=chunk) Provision for Income Taxes | (In millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Income (loss) before income taxes | $176 | $75 | ($26) | | Provision for income taxes | $45 | $31 | $28 | [Note 18: Commitments and Contingencies](index=86&type=section&id=NOTE%2018.%20Commitments%20and%20Contingencies) The company faces legal contingencies including litigation over bond payments and potential claims related to supply chain disruptions - The company is in litigation with the Charter Township of Van Buren, Michigan, which is claiming damages of **$28 million** related to alleged shortfalls on bond payments for the company's headquarters[392](index=392&type=chunk) - Certain customers have reserved their rights to claim damages arising from supply shortages caused by the global semiconductor shortage, though the company believes it has legal defenses[396](index=396&type=chunk) Product Warranty and Recall Liability Reconciliation | (In millions) | 2022 | 2021 | | :--- | :--- | :--- | | Beginning balance | $50 | $64 | | Provisions | $21 | $16 | | Settlements | ($18) | ($25) | | Other (Currency, estimates) | ($2) | ($5) | | **Ending balance** | **$51** | **$50** | [Note 19: Revenue and Geographical Information](index=89&type=section&id=NOTE%2019.%20Revenue%20recognition%20and%20Geographical%20Information) Instrument Clusters were the largest product line at **$1.78 billion** in 2022, while Europe was the largest geographic region with **$1.30 billion** in sales Net Sales by Geographic Region (where sale originates) | (In millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | North America | $971 | $641 | $565 | | Europe | $1,297 | $962 | $967 | | Total China | $870 | $775 | $675 | | Other Asia-Pacific | $625 | $424 | $378 | | South America | $143 | $80 | $71 | | **Total (after eliminations)** | **$3,756** | **$2,773** | **$2,548** | Net Sales by Product Line | (In millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Instrument clusters | $1,782 | $1,356 | $1,197 | | Infotainment | $498 | $370 | $384 | | Information displays | $490 | $402 | $423 | | Cockpit domain controller | $473 | $226 | $155 | | Body and security | $205 | $127 | $99 | | Telematics | $67 | $64 | $57 | | Other | $241 | $228 | $233 | | **Total** | **$3,756** | **$2,773** | **$2,548** | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=91&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[412](index=412&type=chunk) [Controls and Procedures](index=91&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective as of December 31, 2022 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[414](index=414&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2022, which was audited by Deloitte & Touche LLP[416](index=416&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=91&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information is incorporated by reference from the 2023 Proxy Statement, except for executive officer details provided in Part I - Information required by this item is incorporated by reference from the company's 2023 Proxy Statement, with the exception of executive officer information which is located in Item 4A of this report[418](index=418&type=chunk) [Executive Compensation](index=91&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's 2023 Proxy Statement[420](index=420&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=92&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's 2023 Proxy Statement[421](index=421&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's 2023 Proxy Statement[422](index=422&type=chunk) [Principal Accountant Fees and Services](index=92&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2023 Proxy Statement - Information required by this item is incorporated by reference from the company's 2023 Proxy Statement[423](index=423&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=93&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K - This section includes Financial Statements, Financial Statement Schedule II — Valuation and Qualifying Accounts, and a list of all filed exhibits[425](index=425&type=chunk)[426](index=426&type=chunk) [Form 10-K Summary](index=93&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a Form 10-K summary - None[427](index=427&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q3 2022 sales of $1,026 million, a 63% increase year-over-year, marking the highest quarterly sales since 2015 [4][22] - Adjusted EBITDA for Q3 was $95 million, representing a margin of 9.3%, an increase of $53 million compared to the prior year [4][25] - Adjusted free cash flow for the quarter was an inflow of $59 million, driven primarily by higher EBITDA [4][23] Business Line Data and Key Metrics Changes - All core product lines experienced double-digit sales growth, with digital clusters nearly doubling year-over-year [5][7] - SmartCore shipments increased by 50% year-over-year, resulting in sales more than doubling year-over-year [8] - The company launched 32 new products year-to-date, with five new programs launched in Q3 [10][21] Market Data and Key Metrics Changes - Visteon outperformed the market for 14 consecutive quarters, with sales growth of 49% year-over-year compared to vehicle production growth of about 24% [7][24] - The Americas region saw the most significant growth due to new product ramp-ups with Ford and GM [9] - The strong dollar created a currency headwind of about 7% compared to the prior year [9] Company Strategy and Development Direction - The company is focused on maintaining a strong product launch cadence and has won approximately $2 billion in new business in Q3, aiming for a total of $6 billion for the year [5][13] - Visteon is investing in display product lines, with $2.7 billion of new display business won since 2021, primarily in the high-end automotive market [5][17] - The emergence of multi-display systems in luxury vehicles presents a growing opportunity for Visteon [18] Management's Comments on Operating Environment and Future Outlook - Management anticipates that semiconductor shortages will continue to constrain production levels into 2023, impacting sales forecasts [19][20] - The company is focused on mitigating the impact of supply chain challenges and maintaining operational discipline [20][21] - Future guidance for 2023 will be provided in the Q4 earnings call, with expectations for continued strong demand despite supply constraints [20][29] Other Important Information - The company ended Q3 with a total cash position of $365 million and debt of $349 million, resulting in a net cash position of $16 million [23][26] - Adjusted free cash flow guidance for the full year has been lowered due to higher working capital outflows [29] Q&A Session Summary Question: How is Visteon working with OEMs on embedded software? - Management noted that the trend towards cockpit domain controllers is gaining traction, with Visteon providing a platform that allows OEMs to build their systems more efficiently [34][36] Question: What are the levers for achieving EBITDA targets in 2023? - Management indicated that supply constraints will continue to be a significant factor, but they expect mid-teens market growth and potential pricing improvements to support EBITDA margins [39][40] Question: What are the demand trends and macroeconomic impacts on orders? - Demand remains strong, with supply constraints being the limiting factor rather than demand itself, and management is closely monitoring macroeconomic conditions, particularly in Europe [45][46] Question: What LVP levels are needed for $4 billion in revenue next year? - Management suggested that achieving $4 billion in revenue may require lower LVP levels than previously thought, contingent on improvements in semiconductor supply [51][52] Question: What assumptions are baked into the Q4 guidance? - The company expects Q4 sales levels to be similar to Q3, with a reduction in spot purchases anticipated [56] Question: How dynamic is the chip supply situation? - Management confirmed that the chip supply situation is highly dynamic, with weekly adjustments based on availability and demand from other industries [58][62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 001-15827 VISTEON CORPORATION Large accelerated filer ü Accelerated filer ☐ Non-accele ...

Financial Data and Key Metrics Changes - The company reported Q2 sales of $848 million, a 42% year-over-year increase when excluding currency impact, marking the highest quarterly sales since 2015 [5][34] - Adjusted EBITDA was $79 million, representing 9.3% of sales, an increase of $49 million compared to the prior year due to higher production volumes and strong operational discipline [5][40] - Adjusted free cash flow for Q2 was a use of $62 million, driven by disruptions in semiconductor supply that increased working capital [6][44] Business Line Data and Key Metrics Changes - The company launched 11 new products in Q2, totaling 27 for the first half of the year, which positions it well for continued sales outperformance [6][17] - Strong demand for digital products such as clusters, infotainment, and cockpit domain controllers contributed to overall sales growth [13][16] Market Data and Key Metrics Changes - Sales growth was strongest in the Americas, with high teens growth in Europe, while Asia saw a 2% increase despite an 11% decline in vehicle production [15][16] - The company outperformed vehicle production by a significant margin, achieving a total growth-over-market of 36% in Q2 [38] Company Strategy and Development Direction - The company is focused on leading the transformation to integrated cockpit domain controllers, with over $2 billion in new business won in Q2, bringing the year-to-date total to approximately $3.1 billion [7][22] - The shift to electric vehicles is accelerating the development of new vehicle platforms, and the company is well-positioned to meet these demands with its SmartCore technology [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving full-year targets for sales, adjusted EBITDA, and adjusted free cash flow despite ongoing semiconductor shortages [31][49] - The reopening of Shanghai is expected to alleviate supply chain bottlenecks, and the company anticipates semiconductor supply to modestly improve in the second half of the year [30][31] Other Important Information - The company ended Q2 with total cash of $325 million and a net debt position of $24 million, maintaining a low net leverage ratio of 0.1 times [37][42] - The company has extended its debt maturity profile to 2027, enhancing its financial flexibility [43] Q&A Session Summary Question: Expectations for second half costs and recoveries - Management confirmed strong recoveries are expected in the second half, with lower open market purchases anticipated due to improved supply [54][56] Question: Revenue outlook in the second half - Management expects modest growth in sales versus H1, driven by improved production but tempered by lower recoveries from open market purchases and negative FX impacts [60][62] Question: Impact of chip inventory improvements - Management noted improvements in supply for certain chips but emphasized the ongoing need for redesigns to mitigate shortages [67][69] Question: Margin expectations for the second half - Management indicated that the first half's EBITDA margin of 9% is a good proxy for future performance, with expectations for slight improvements in the second half [88][92]

Visteon Q2 2022 Earnings July 28, 2022 Visteon Q2 2022 In Review ($62) Million Visteon® Net Sales Adjusted EBITDA Adjusted FCF $848 Million 42% Y/Y Growth(1) $79 Million 9.3% Margin $325 Million Total Cash STRONG PRODUCT PORTFOLIO CONTINUES TO DRIVE GROWTH | --- | --- | --- | --- | --- | |-------------------------------------|--------------------------|----------------------------------------|---------------------------------------------|-----------------------------------------| | | | | | | | 13 consecutiv ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%20-%20Condensed%20Consolidated%20Financial%20Statements) The company achieved significant net sales growth and profitability in Q2 and H1 2022, with negative operating cash flow from working capital [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Visteon reported a significant increase in net sales and a return to profitability for Q2 and H1 2022, driven by strong sales growth Condensed Consolidated Statements of Comprehensive Income (Loss) (in millions) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2022** | **2021** | **2022** | **2021** | | **Net sales** | $848 | $610 | $1,666 | $1,356 | | **Gross margin** | $74 | $35 | $150 | $108 | | **Net income (loss) attributable to Visteon** | $24 | $(11) | $46 | $5 | | **Diluted earnings (loss) per share** | $0.85 | $(0.39) | $1.61 | $0.18 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets slightly decreased to **$2,146 million** as of June 30, 2022, while total equity modestly increased to **$626 million** Balance Sheet Highlights (in millions) | | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $1,399 | $1,424 | | **Total assets** | $2,146 | $2,234 | | **Total current liabilities** | $801 | $852 | | **Total liabilities** | $1,520 | $1,618 | | **Total equity** | $626 | $616 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Operating activities resulted in a **$72 million** net cash outflow for H1 2022, primarily due to increased working capital needs Six Months Ended June 30, Cash Flow Summary (in millions) | | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash (used by) provided from operating activities** | $(72) | $1 | | **Net cash used by investing activities** | $(31) | $(31) | | **Net cash (used by) provided from financing activities** | $(4) | $6 | | **Net decrease in cash, equivalents, and restricted cash** | $(130) | $(30) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail accounting policies, investments, restructuring, and financial instruments, including Russia operations suspension and segment reporting for Electronics - The company suspended operations in Russia, resulting in a **$2 million** non-cash impairment charge on property and equipment and a **$2 million** charge to reduce inventory to its net realizable value[35](index=35&type=chunk)[36](index=36&type=chunk) - The company's single reportable segment is **Electronics**, which includes products like instrument clusters, information displays, and infotainment systems[94](index=94&type=chunk) Product Line Net Sales (in millions) | Product Lines | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Instrument clusters | $805 | $649 | | Information displays | $254 | $215 | | Infotainment | $216 | $195 | | Cockpit domain controller | $183 | $89 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 and H1 2022 performance to higher sales and customer recoveries, maintaining liquidity despite supply chain challenges - Strategic priorities include technology innovation in cockpit electronics, securing long-term growth through new business wins, and enhancing shareholder returns while maintaining a strong balance sheet[103](index=103&type=chunk) - Q2 2022 net sales increased by **$238 million** YoY, driven by a **$137 million** increase from volume and new business, and **$122 million** from favorable customer pricing related to supply chain cost recoveries[108](index=108&type=chunk) - Adjusted EBITDA for Q2 2022 was **$79 million**, a **$49 million** increase from Q2 2021, primarily due to higher sales volumes and customer recoveries[117](index=117&type=chunk) [Results of Operations - Three Months Ended June 30, 2022 and 2021](index=28&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202022%20and%202021) Q2 2022 net sales increased to **$848 million**, driving gross margin improvement and a return to **$24 million** net income from a prior-year loss Q2 2022 vs. Q2 2021 Results (in millions) | | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $848 | $610 | $238 | | **Gross margin** | $74 | $35 | $39 | | **Net income (loss) attributable to Visteon** | $24 | $(11) | $35 | | **Adjusted EBITDA** | $79 | $30 | $49 | [Results of Operations - Six Months Ended June 30, 2022 and 2021](index=30&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202022%20and%202021) H1 2022 net sales increased by **$310 million** to **$1,666 million**, leading to significant growth in gross margin and net income H1 2022 vs. H1 2021 Results (in millions) | | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $1,666 | $1,356 | $310 | | **Gross margin** | $150 | $108 | $42 | | **Net income (loss) attributable to Visteon** | $46 | $5 | $41 | | **Adjusted EBITDA** | $150 | $94 | $56 | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity) The company maintains sufficient liquidity through **$325 million** cash and **$400 million** credit facility, despite H1 2022 operating cash outflows - As of June 30, 2022, the company had cash and equivalents of **$325 million** and availability of **$400 million** under its revolving credit facility and **$187 million** under affiliate working capital lines[140](index=140&type=chunk)[141](index=141&type=chunk) - A significant portion of cash (**$273 million**) is located outside the U.S., with **$45 million** considered permanently reinvested[141](index=141&type=chunk) - The company used **$72 million** of cash from operating activities in H1 2022, primarily due to an **$88 million** increase in working capital outflows compared to the prior year[146](index=146&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Visteon manages market risks from currency, interest rates, and commodities using derivative instruments, with a **$5 million** potential loss from a 10% adverse currency change - The company's primary market risks are foreign currency exchange rates, interest rates, and commodity prices[156](index=156&type=chunk) - Derivative instruments are used for hedging, not speculation; primary hedged currency exposures include EUR, CNY, BRL, INR, and BGN[156](index=156&type=chunk)[157](index=157&type=chunk) - A hypothetical **10%** adverse change in quoted currency exchange rates would result in a pre-tax loss of **$5 million** in the fair value of currency derivative financial instruments as of June 30, 2022[159](index=159&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2022[163](index=163&type=chunk) - No changes occurred in the Company's internal control over financial reporting during Q2 2022 that have materially affected, or are reasonably likely to materially affect, these controls[164](index=164&type=chunk) [Part II - Other Information](index=37&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=37&type=section&id=Item%201%20-%20Legal%20Proceedings) Ongoing legal matters include a **$28 million** lawsuit, a pending OFAC review regarding Iran sales, and **$9 million** accrued for Brazilian claims - The company is involved in litigation with the Charter Township of Van Buren, Michigan, claiming damages of **$28 million** related to alleged shortfalls on bonds for the company's headquarters[82](index=82&type=chunk)[83](index=83&type=chunk) - The U.S. Treasury's Office of Foreign Assets Control (OFAC) is reviewing a voluntary self-disclosure regarding **$12 million** in sales by a former Chinese joint venture into Iran, with potential loss not estimable[84](index=84&type=chunk) - The company has accrued **$9 million** for various legal claims in Brazil, which total an aggregate of **$56 million**[85](index=85&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A%20-%20Risk%20Factors) Significant macroeconomic uncertainty, exacerbated by geopolitical events and COVID, is increasing costs and supply chain challenges, potentially impacting operations - The company is operating in a period of significant macro-economic uncertainty, including supply-chain disruptions, COVID-related lockdowns, and increasing inflationary pressures[169](index=169&type=chunk) - The conflict in Ukraine and COVID lockdowns in China are exacerbating component cost increases, supply chain challenges, and volatility with customer production schedules[169](index=169&type=chunk) - Negative impacts may lead to increased costs for raw materials, transportation, and energy, and commercial negotiations with customers may not fully offset these higher costs[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No purchases of the company's common stock were made by or on behalf of the company or any affiliated purchaser during Q1 2022 - There were no purchases of the Company's common stock made by or on behalf of the Company during the first quarter of 2022[173](index=173&type=chunk) [Exhibits](index=37&type=section&id=Item%206%20-%20Exhibits) Exhibits, including CEO/CFO certifications and XBRL data files, are filed with the report or incorporated by reference as listed in the Exhibit Index - The exhibits listed in the Exhibit Index are filed with the report, including CEO/CFO certifications and XBRL Interactive Data Files[174](index=174&type=chunk)[177](index=177&type=chunk)

Visteon Corp. (NASDAQ:VC) Q1 2022 Earnings Conference Call April 28, 2022 9:00 AM ET Company Participants Kristopher Doyle - Director, IR and FP&A Sachin Lawande - President, CEO & Director Jerome Rouquet - SVP & CFO Conference Call Participants Mark Delaney - Goldman Sachs Group James Picariello - BNP Paribas Exane Michael Filatov - Berenberg Emmanuel Rosner - Deutsche Bank Joseph Spak - RBC Capital Markets David Kelley - Jefferies Colin Langan - Wells Fargo Securities Kristopher Doyle Good morning. I'm Kr ...

Visteon Q1 2022 Earnings April 28, 2022 Visteon Q1 2022 In Review ($37) Million Net Sales $818 Million 11% Y/Y Growth(1) Adjusted EBITDA $71 Million 8.7% Margin Adjusted FCF $405 Million Total Cash STRONG PRODUCT PORTFOLIO CONTINUED TO DRIVE GROWTH | --- | --- | --- | --- | --- | |-----------------------------------------|----------------------------|------------------------------------------|--------------------------------------------|--------------------------------------------------| | | | | | | | ~22% ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 001-15827 VISTEON CORPORATION (Exact name of registrant as specified in its charter) State ...

Visteon Corporation (NASDAQ:VC) Q4 2021 Earnings Conference Call February 17, 2022 9:00 AM ET Company Participants Kristopher Doyle - Vice President, Investor Relations and Treasurer Sachin Lawande - President and Chief Executive Officer Jerome Rouquet - Senior Vice President and Chief Financial Officer Conference Call Participants Joseph Spak - RBC Capital Markets Jason Stuhldreher - Barclays Capital David Kelley - Jefferies Aileen Smith - Bank of America Colin Langan - Wells Fargo Kristopher Doyle Good mo ...