Visteon Q4 and Full-Year 2020 Earnings February 18, 2021 Visteon Confidential Q4 and 2020 Summary Visteon® | --- | --- | --- | --- | --- | |----------------|-------|---------------|-------|---------------------| | | | | | | | $787 Million | | $75 Million | | $96 Million in FY | | +5% Y/Y (1) | | 9.5% Margin | | $59 Million in Q4 | WELL POSITIONED TO OUTPERFORM MARKET | --- | --- | --- | --- | --- | |---------------------------------------|-------------------------------------------|------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ State of Delaware 38-3519512 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) One V ...

Financial Data and Key Metrics Changes - Visteon's sales grew 3% year-over-year on a constant currency basis to $747 million in Q3 2020 despite a 3% decline in global vehicle production [5][37] - Adjusted EBITDA was $87 million, representing an 11.6% margin, which is a record for the third quarter and a 310 basis point improvement over the previous year [5][44] - Adjusted free cash flow was $103 million for Q3 and $37 million for the first nine months, higher than the prior year [6][41] Business Line Data and Key Metrics Changes - Sales of digital clusters more than doubled year-over-year, now representing almost half of total instrument cluster sales, with strong demand particularly in Europe [11] - Sales of digital displays grew double-digit year-over-year due to new product launches [12] - The company launched 23 new products in Q3, bringing the year-to-date total to 44, with a projected lifetime revenue of over $2.5 billion from these launches [13][18] Market Data and Key Metrics Changes - Vehicle production improved in Q3, recovering to within 3% of prior year levels, with retail demand boosted by pent-up demand and government incentives [10][30] - Visteon's top customers experienced a 6% decline year-over-year, while Visteon's sales increased by 3% due to strong demand for digital cockpit products [10] - New business bookings improved to $1.5 billion in Q3, with cockpit electronics representing about $1 billion of the total [19] Company Strategy and Development Direction - The company is undergoing a transformation towards a platform-based approach in product development, aiming for increased operational efficiency and reduced structural costs [7] - Visteon is well-positioned to leverage the growing interest in electric vehicles (EVs) with its product portfolio, including digital cockpit systems and wireless battery management systems [28][33] - The company aims to achieve a 12% margin target by 2023, supported by cost reductions and expected sales growth [76] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in vehicle production but highlighted risks from COVID-19 and the expiration of government incentives [31][32] - The company expects to continue outperforming the market in Q4 based on trends in cockpit electronics and new product launches [32][33] - Management noted that while retail demand was strong, underlying market conditions may not support overly optimistic production forecasts [30][32] Other Important Information - The company ended Q3 with a net cash position of $87 million, having repaid its revolving credit facility [8][41] - Visteon has been actively managing its supply chain and inventory levels to optimize cash flow [40] Q&A Session Summary Question: How much of the EBITDA increase is due to temporary measures? - Management estimated that 1.5% to 2% of EBITDA in Q3 was related to temporary austerity measures that will not repeat in Q4, normalizing results to a 9.5% to 10.1% EBITDA range [55] Question: What are the margin implications of the growth in digital clusters? - Digital clusters have significant software content, which is in-sourced, leading to better margins compared to traditional display business [58][60] Question: What is the expected annual business opportunity for the wireless BMS? - Management indicated that the wireless BMS could represent an annual business opportunity of $350 million to $500 million, depending on the growth of the Ultium platform [84] Question: Are there any pricing pressures on analog systems? - Management clarified that they are not experiencing additional pricing pressure beyond normal levels and have been able to offset typical pricing pressures [66] Question: What is the expected growth for the Android-based infotainment system? - All remaining contracts for the Android-based infotainment system are expected to go into production in 2021, with significant interest from OEMs following the launch with VW [91][93]

Visteon Q3 2020 Earnings October 29, 2020 Visteon Visteon Confidential Q3 2020 Summary | --- | --- | --- | --- | --- | |-----------------------------|-------|----------------------------|-------|--------------------------------------| | Net Sales | | Adjusted EBITDA | | Adjusted FCF | | $747 Million +3% Y/Y (1) | | $87 Million 11.6% Margin | | $37 Million YTD $103 Million in Q3 | PROACTIVE INITIATIVES DRIVING STRONG PERFORMANCE $3.2 billion in YTD new business wins WON SIGNIFICANT NEW BUSINESS MARKET-LEADIN ...

Part I - Financial Information [Item 1 - Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%20-%20Condensed%20Consolidated%20Financial%20Statements) Visteon's unaudited condensed consolidated financial statements and detailed notes for Q3 2020 and FY 2019 are presented [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) This statement details Visteon's comprehensive income and loss, including net sales, gross margin, and earnings per share Condensed Consolidated Statements of Comprehensive Income (Loss) (in millions) | Metric (in millions) | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net sales | $747 | $731 | $1,761 | $2,201 | | Gross margin | $99 | $84 | $156 | $220 | | Net income (loss) attributable to Visteon Corporation | $6 | $14 | $(74) | $35 | | Basic earnings (loss) per share | $0.22 | $0.50 | $(2.65) | $1.25 | | Diluted earnings (loss) per share | $0.21 | $0.50 | $(2.65) | $1.24 | - For the three months ended September 30, 2020, net sales increased by **$16 million**, and gross margin improved by **$15 million** compared to the same period in 2019. However, net income attributable to Visteon Corporation decreased by **$8 million**, and basic EPS declined from **$0.50** to **$0.22**[10](index=10&type=chunk) - For the nine months ended September 30, 2020, net sales decreased by **$440 million**, and gross margin declined by **$64 million** compared to the same period in 2019. The company reported a net loss of **$74 million** attributable to Visteon Corporation, a significant decrease from the **$35 million** net income in the prior year, resulting in a basic loss per share of **$(2.65)**[10](index=10&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This statement provides Visteon's financial position, detailing assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheets (in millions) | Metric (in millions) | September 30, 2020 | December 31, 2019 | | :------------------- | :----------------- | :---------------- | | Cash and equivalents | $431 | $466 | | Total current assets | $1,268 | $1,345 | | Total assets | $2,164 | $2,271 | | Short-term debt | $— | $37 | | Total current liabilities | $788 | $798 | | Long-term debt, net | $348 | $348 | | Total equity | $502 | $595 | - As of September 30, 2020, total assets decreased to **$2,164 million** from **$2,271 million** at December 31, 2019. Cash and equivalents decreased by **$35 million**, and total equity decreased by **$93 million**[13](index=13&type=chunk) - Short-term debt was fully repaid by September 30, 2020, down from **$37 million** at year-end 2019, while long-term debt remained stable at **$348 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement outlines Visteon's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in millions) | Activity (in millions) | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--------------------- | :----------------------------- | :----------------------------- | | Net cash provided from operating activities | $97 | $118 | | Net cash used by investing activities | $(77) | $(96) | | Net cash used by financing activities | $(60) | $(35) | | Net decrease in cash | $(34) | $(21) | - Net cash provided from operating activities decreased by **$21 million** to **$97 million** for the nine months ended September 30, 2020, compared to **$118 million** in the prior year[15](index=15&type=chunk) - Net cash used by financing activities increased to **$60 million** in 2020 from **$35 million** in 2019, primarily due to short-term debt repayments and share repurchases[15](index=15&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity%20(Unaudited)) This statement tracks changes in Visteon's total equity, including stockholders' equity and non-controlling interests Condensed Consolidated Statements of Changes in Equity (in millions) | Equity Component (in millions) | December 31, 2019 | September 30, 2020 | | :----------------------------- | :---------------- | :----------------- | | Total Visteon Corporation Stockholders' Equity | $480 | $385 | | Non-controlling interests | $115 | $117 | | Total Equity | $595 | $502 | - Total Visteon Corporation stockholders' equity decreased by **$95 million** from **$480 million** at December 31, 2019, to **$385 million** at September 30, 2020, primarily due to net loss and accumulated other comprehensive loss[18](index=18&type=chunk) - Accumulated other comprehensive loss increased from **$(267) million** to **$(282) million** during the nine-month period[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed explanations of Visteon's accounting policies, financial instruments, and other financial disclosures [NOTE 1. Summary of Significant Accounting Policies](index=7&type=section&id=NOTE%201.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines Visteon's significant accounting policies, including GAAP compliance and recent accounting pronouncement adoptions - The condensed consolidated financial statements are prepared in accordance with U.S. GAAP, with certain information condensed or omitted per SEC rules. Interim results are not necessarily indicative of full-year results[20](index=20&type=chunk) - The Company adopted ASU 2016-13 (Credit Losses) and ASU 2019-12 (Income Taxes) effective January 1, 2020, neither of which had a material impact on the financial statements[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The Company is evaluating the impacts of ASU 2020-04 (Reference Rate Reform) and does not expect ASU 2018-14 (Defined Benefit Plans Disclosure) to have a material impact[25](index=25&type=chunk)[26](index=26&type=chunk) Allowance for Doubtful Accounts (in millions) | Metric | Nine Months Ended Sep 30, 2020 | | :----- | :----------------------------- | | Beginning balance | $10 | | Provision | $2 | | Recoveries | $(3) | | Write-offs | $(4) | | Ending balance | $5 | [NOTE 2. Non-Consolidated Affiliates](index=8&type=section&id=NOTE%202.%20Non-Consolidated%20Affiliates) This note details Visteon's investments in non-consolidated affiliates and exposure to variable interest entities - Equity in net income of non-consolidated affiliates was **$4 million** for the nine months ended September 30, 2020, down from **$7 million** in 2019[27](index=27&type=chunk) - Visteon and Yangfeng Automotive Trim Systems Co. Ltd. (YF) each own **50%** of Yanfeng Visteon Investment Co., Ltd. (YFVIC), which is considered a Variable Interest Entity (VIE) but not consolidated as neither entity has control[28](index=28&type=chunk)[31](index=31&type=chunk) Investments in Non-Consolidated Affiliates (in millions) | Affiliate | September 30, 2020 | December 31, 2019 | | :-------- | :----------------- | :---------------- | | YFVIC (50%) | $46 | $43 | | PT Astra Visteon Indonesia (50%) | $5 | $5 | | Total | $51 | $48 | Maximum Exposure to Loss in YFVIC (in millions) | Metric | September 30, 2020 | December 31, 2019 | | :----- | :----------------- | :---------------- | | Investment in YFVIC | $46 | $43 | | Receivables due from YFVIC | $52 | $41 | | Subordinated loan receivable from YFVIC | $6 | $8 | | Total Maximum Exposure to Loss | $104 | $92 | [NOTE 3. Restructuring Activities](index=9&type=section&id=NOTE%203.%20Restructuring%20Activities) This note describes Visteon's restructuring activities, including plans initiated and changes in restructuring reserves - The Company initiated several restructuring actions in 2020, including a **$31 million** plan in September in response to COVID-19, a **$16 million** global plan in March, and a **$22 million** European plan in January, all aimed at improving efficiency and rationalizing its footprint[35](index=35&type=chunk) - Restructuring reserves increased significantly to **$52 million** as of September 30, 2020, from **$10 million** at December 31, 2019, with activities expected to be substantially complete by the end of 2021[38](index=38&type=chunk)[39](index=39&type=chunk) Restructuring Reserves Rollforward (in millions) | Period | Balance | | :----- | :------ | | December 31, 2019 | $10 | | Expense | $33 | | Utilization | $(6) | | Foreign currency | $(1) | | March 31, 2020 | $36 | | Expense | $1 | | Change in estimate | $3 | | Utilization | $(9) | | Foreign currency | $1 | | June 30, 2020 | $32 | | Expense | $31 | | Change in estimate | $1 | | Utilization | $(12) | | September 30, 2020 | $52 | [NOTE 4. Inventories](index=10&type=section&id=NOTE%204.%20Inventories) This note provides a breakdown of Visteon's inventories, including raw materials, work-in-process, and finished products Inventories, Net (in millions) | Component | September 30, 2020 | December 31, 2019 | | :-------- | :----------------- | :---------------- | | Raw materials | $102 | $100 | | Work-in-process | $25 | $28 | | Finished products | $37 | $41 | | Total | $164 | $169 | - Total inventories, net, decreased slightly to **$164 million** as of September 30, 2020, from **$169 million** at December 31, 2019, with a minor increase in raw materials offset by decreases in work-in-process and finished products[40](index=40&type=chunk) [NOTE 5. Goodwill and Other Intangible Assets](index=11&type=section&id=NOTE%205.%20Goodwill%20and%20Other%20Intangible%20Assets) This note details Visteon's goodwill and other intangible assets, including definite-lived and indefinite-lived categories Intangible Assets, Net (in millions) | Category | September 30, 2020 | December 31, 2019 | | :------- | :----------------- | :---------------- | | Definite-Lived | $79 | $81 | | Indefinite-Lived (Goodwill) | $47 | $46 | | Total | $126 | $127 | - Total intangible assets, net, remained relatively stable at **$126 million** as of September 30, 2020, compared to **$127 million** at December 31, 2019. Goodwill increased by **$1 million** due to foreign currency adjustments[42](index=42&type=chunk) - Capitalized software development increased by **$9 million** during the nine months ended September 30, 2020, reflecting ongoing investments[42](index=42&type=chunk) [NOTE 6. Other Assets](index=11&type=section&id=NOTE%206.%20Other%20Assets) This note presents Visteon's other current and non-current assets, including recoverable taxes and engineering costs Other Current Assets (in millions) | Component | September 30, 2020 | December 31, 2019 | | :-------- | :----------------- | :---------------- | | Recoverable taxes | $68 | $64 | | Joint venture receivables | $52 | $41 | | Contractually reimbursable engineering costs | $32 | $29 | | China bank notes | $11 | $16 | | Total | $193 | $193 | Other Non-Current Assets (in millions) | Component | September 30, 2020 | December 31, 2019 | | :-------- | :----------------- | :---------------- | | Deferred tax assets | $55 | $59 | | Contractually reimbursable engineering costs | $30 | $24 | | Recoverable taxes | $19 | $28 | | Total | $133 | $150 | - Contractually reimbursable engineering costs are expected to generate **$12 million** in cash reimbursement payments during the remainder of 2020, **$24 million** in 2021, and **$46 million** from 2022 onwards[45](index=45&type=chunk) [NOTE 7. Other Liabilities](index=12&type=section&id=NOTE%207.%20Other%20Liabilities) This note details Visteon's other current and non-current liabilities, including restructuring and warranty accruals Other Current Liabilities (in millions) | Component | September 30, 2020 | December 31, 2019 | | :-------- | :----------------- | :---------------- | | Restructuring reserves | $52 | $10 | | Product warranty and recall accruals | $37 | $34 | | Joint venture payables | $11 | $9 | | Total | $189 | $147 | Other Non-Current Liabilities (in millions) | Component | September 30, 2020 | December 31, 2019 | | :-------- | :----------------- | :---------------- | | Derivative financial instruments | $27 | $14 | | Product warranty and recall accruals | $13 | $15 | | Total | $72 | $72 | - Other current liabilities increased by **$42 million**, primarily driven by a significant increase in restructuring reserves from **$10 million** to **$52 million**[46](index=46&type=chunk) [NOTE 8. Debt](index=13&type=section&id=NOTE%208.%20Debt) This note provides details on Visteon's debt structure, including short-term borrowings, term debt, and credit facilities Debt (in millions) | Category | September 30, 2020 | December 31, 2019 | | :------- | :----------------- | :---------------- | | Short-term borrowings | $— | $37 | | Term debt facility, net | $348 | $348 | - Short-term borrowings, primarily from non-U.S. joint ventures, were fully repaid during the third quarter of 2020[48](index=48&type=chunk) - The Company borrowed the entire **$400 million** from its Revolving Credit Facility on March 19, 2020, due to COVID-19 uncertainty, but fully repaid it on September 24, 2020, following improved industry recovery and company performance[50](index=50&type=chunk) - As of September 30, 2020, the Company was in compliance with all debt covenants, including maintaining a total net leverage ratio no greater than **3.50:1.00**[52](index=52&type=chunk) [NOTE 9. Employee Benefit Plans](index=14&type=section&id=NOTE%209.%20Employee%20Benefit%20Plans) This note outlines Visteon's employee benefit plans, including pension costs and deferred contributions due to COVID-19 Net Pension Benefit (Cost) (in millions) | Period | U.S. Plans (2020) | U.S. Plans (2019) | Non-U.S. Plans (2020) | Non-U.S. Plans (2019) | | :----- | :---------------- | :---------------- | :-------------------- | :-------------------- | | Three Months Ended Sep 30 | $3 | $2 | $(1) | $(1) | | Nine Months Ended Sep 30 | $8 | $7 | $(3) | $(2) | - The Company deferred approximately **$17 million** in U.S. defined benefit pension plan contributions and **$2 million** in non-U.S. plan contributions until 2024, both due to COVID-19 relief measures[58](index=58&type=chunk)[59](index=59&type=chunk) - Net pension financing benefits are classified as Other income, net, contributing **$3 million** and **$10 million** for the three and nine months ended September 30, 2020, respectively[56](index=56&type=chunk)[57](index=57&type=chunk) [NOTE 10. Income Taxes](index=15&type=section&id=NOTE%2010.%20Income%20Taxes) This note details Visteon's income tax provision, effective tax rate impacts, and unrecognized tax benefits - The provision for income tax was **$12 million** for the three months and **$19 million** for the nine months ended September 30, 2020, reflecting profitability in certain countries, withholding taxes, and valuation allowances[60](index=60&type=chunk) - Pretax losses in jurisdictions with valuation allowances totaled **$106 million** for the nine months ended September 30, 2020, increasing the effective tax rate[60](index=60&type=chunk) - A **$4 million** discrete income tax expense adjustment was recorded in Q3 2020 due to a reassessment of deferred tax asset utilization in Germany, following restructuring programs[64](index=64&type=chunk) - Gross unrecognized tax benefits remained at **$13 million** as of September 30, 2020, with **$6 million** impacting the effective tax rate if recognized[65](index=65&type=chunk) [NOTE 11. Stockholders' Equity and Non-controlling Interests](index=16&type=section&id=NOTE%2011.%20Stockholders'%20Equity%20and%20Non-controlling%20Interests) This note describes Visteon's stockholders' equity, non-controlling interests, and changes in accumulated other comprehensive income - The Company repurchased **233,769** shares of common stock for **$16 million** during Q1 2020. As of September 30, 2020, **$364 million** remained available under the share repurchase authorization, but the Company does not intend to repurchase additional shares under this authorization[68](index=68&type=chunk)[69](index=69&type=chunk) Non-Controlling Interests (in millions) | Entity | September 30, 2020 | December 31, 2019 | | :----- | :----------------- | :---------------- | | Yanfeng Visteon Automotive Electronics Co., Ltd. | $53 | $56 | | Shanghai Visteon Automotive Electronics, Co., Ltd. | $43 | $41 | | Changchun Visteon FAWAY Electronics, Co., Ltd. | $19 | $17 | | Other | $2 | $1 | | Total | $117 | $115 | Changes in Accumulated Other Comprehensive Income (Loss) (in millions) | Metric | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2020 | | :----- | :------------------------------ | :----------------------------- | | Beginning balance | $(299) | $(267) | | Other comprehensive income (loss) before reclassification, net of tax | $18 | $(13) | | Amounts reclassified from AOCI | $(1) | $(2) | | Ending balance | $(282) | $(282) | [NOTE 12. Earnings Per Share](index=18&type=section&id=NOTE%2012.%20Earnings%20Per%20Share) This note details Visteon's earnings per share calculations, including basic and diluted figures and anti-dilutive items Earnings Per Share Calculation (in millions, except per share amounts) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :----- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Visteon | $6 | $14 | $(74) | $35 | | Average common stock outstanding - basic | 27.8 | 28.0 | 27.9 | 28.1 | | Diluted shares | 28.0 | 28.1 | 27.9 | 28.2 | | Basic earnings (loss) per share | $0.22 | $0.50 | $(2.65) | $1.25 | | Diluted earnings (loss) per share | $0.21 | $0.50 | $(2.65) | $1.24 | - Basic and diluted EPS decreased significantly for both the three and nine months ended September 30, 2020, compared to the prior year, reflecting lower net income attributable to Visteon Corporation[74](index=74&type=chunk) - Approximately **181,000** performance-based share units were excluded from the diluted loss per share calculation for the nine months ended September 30, 2020, as their inclusion would have been anti-dilutive[74](index=74&type=chunk) [NOTE 13. Fair Value Measurements and Financial Instruments](index=18&type=section&id=NOTE%2013.%20Fair%20Value%20Measurements%20and%20Financial%20Instruments) This note describes Visteon's fair value measurements for financial instruments, including derivatives and debt - The Company uses derivative financial instruments (forward contracts, cross-currency swaps, interest rate swaps) to manage exposure to currency exchange rates and interest rate variability, classifying them as Level 2 in the fair value hierarchy[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - As of September 30, 2020, the Company had foreign currency derivative instruments with gross notional values of **$78 million**, cross-currency swaps with an aggregate notional value of **$250 million**, and interest rate swaps with an aggregate notional value of **$300 million**[81](index=81&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - The fair value of debt was **$342 million** as of September 30, 2020, based on current market rates, classified as Level 2[87](index=87&type=chunk) - The Company's credit risk concentration with any single customer does not exceed **10%** of total accounts receivable, except for Ford and its affiliates (**14%**) and Renault/Nissan (**12%**) as of September 30, 2020[89](index=89&type=chunk) [NOTE 14. Commitments and Contingencies](index=20&type=section&id=NOTE%2014.%20Commitments%20and%20Contingencies) This note outlines Visteon's commitments and contingencies, including legal proceedings, investigations, and warranty liabilities - The Company is involved in litigation with Van Buren Township for **$28 million** related to bond payment obligations for its U.S. headquarters, which the Company intends to vigorously defend[90](index=90&type=chunk)[91](index=91&type=chunk) - An OFAC investigation is ongoing regarding past sales of automotive HVAC components into Iran by a Chinese joint venture, with potential civil penalties that could be material[92](index=92&type=chunk) - Accruals for claims in Brazil totaled **$8 million** for claims aggregating **$52 million** as of September 30, 2020[93](index=93&type=chunk) Product Warranty and Recall Claims Liability Rollforward (in millions) | Metric | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :----- | :----------------------------- | :----------------------------- | | Beginning balance | $49 | $48 | | Accruals for products shipped | $11 | $15 | | Changes in estimates | $(2) | $2 | | Specific cause actions | $5 | $3 | | Settlements | $(14) | $(16) | | Foreign currency translation | $1 | $(1) | | Ending balance | $50 | $51 | [NOTE 15. Segment Information](index=22&type=section&id=NOTE%2015.%20Segment%20Information) This note provides Visteon's segment information, including Adjusted EBITDA and disaggregated revenue by geography and product - Visteon operates as a single reportable segment, Electronics, providing vehicle cockpit electronics products such as instrument clusters, information displays, and infotainment systems[102](index=102&type=chunk) - Adjusted EBITDA, a non-GAAP measure, is used by management to evaluate financial performance and for incentive compensation decisions. It increased to **$87 million** for the three months ended September 30, 2020, from **$62 million** in 2019, but decreased to **$117 million** for the nine months ended September 30, 2020, from **$149 million** in 2019[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) Disaggregated Revenue by Geographical Markets (in millions) | Market | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :----- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Europe | $281 | $221 | $667 | $726 | | Americas | $192 | $201 | $446 | $597 | | China Domestic | $140 | $143 | $323 | $372 | | China Export | $58 | $70 | $145 | $204 | | Other Asia-Pacific | $107 | $141 | $261 | $440 | | Total | $747 | $731 | $1,761 | $2,201 | Disaggregated Revenue by Product Lines (in millions) | Product Line | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :----------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Instrument clusters | $388 | $322 | $901 | $959 | | Audio and infotainment | $134 | $182 | $333 | $562 | | Information displays | $135 | $120 | $298 | $365 | | Telematics | $14 | $29 | $43 | $51 | | Total | $747 | $731 | $1,761 | $2,201 | [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Visteon's financial condition, operations, and cash flows, highlighting strategic priorities and market impacts for Q3 2020 [Executive Summary](index=25&type=section&id=Executive%20Summary) This summary introduces Visteon as a global automotive supplier and outlines its strategic priorities for growth and shareholder returns - Visteon is a global automotive supplier specializing in cockpit electronics and connected car solutions, aiming to capitalize on the industry's shift to digital, connected, automated, and voice-enabled cockpits[110](index=110&type=chunk) - Strategic priorities include Technology Innovation (e.g., DriveCore™ advanced safety platform), Long-Term Growth and Margin Expansion through new business wins, and Enhancing Shareholder Returns, having returned approximately **$3.3 billion** to shareholders since 2015[111](index=111&type=chunk) [Financial Results](index=26&type=section&id=Financial%20Results) This section highlights Visteon's net sales breakdown for the Electronics segment by geographic region - The section highlights net sales breakdown for Visteon's Electronics segment for the three and nine months ended September 30, 2020, based on the geographic region where the sale originates[112](index=112&type=chunk)[115](index=115&type=chunk) [Global Automotive Market Conditions and Production Levels](index=26&type=section&id=Global%20Automotive%20Market%20Conditions%20and%20Production%20Levels) This section analyzes global light vehicle production trends, noting decreases and regional variations for the periods presented - Global light vehicle production decreased by **3.4%** for the three months ended September 30, 2020, and by **23.2%** for the nine months ended September 30, 2020, compared to the same periods in 2019[115](index=115&type=chunk) Global Light Vehicle Production (Units in millions) | Region | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Change (%) | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | Change (%) | | :----- | :------------------------------ | :------------------------------ | :--------- | :----------------------------- | :----------------------------- | :--------- | | China | 6.4 | 5.8 | 10.6% | 15.8 | 17.3 | (8.8)% | | Other Asia Pacific | 4.5 | 5.2 | (14.7)% | 11.9 | 16.3 | (27.3)% | | Europe | 4.3 | 4.7 | (7.7)% | 11.2 | 16.0 | (29.5)% | | Americas | 4.7 | 4.9 | (3.4)% | 10.7 | 15.0 | (28.9)% | | Global | 20.3 | 21.0 | (3.4)% | 50.8 | 66.1 | (23.2)% | - China experienced a **10.6%** increase in light vehicle production in Q3 2020, while other regions like Other Asia Pacific, Europe, and Americas saw declines of **14.7%**, **7.7%**, and **3.4%** respectively[115](index=115&type=chunk) [Results of Operations - Three Months Ended September 30, 2020 and 2019](index=27&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20September%2030,%202020%20and%202019) This section analyzes Visteon's consolidated results for the three months ended September 30, 2020, compared to 2019 Consolidated Results of Operations (in millions) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Change | | :----- | :------------------------------ | :------------------------------ | :----- | | Net sales | $747 | $731 | $16 | | Gross margin | $99 | $84 | $15 | | Net income (loss) attributable to Visteon Corporation | $6 | $14 | $(8) | | Adjusted EBITDA | $87 | $62 | $25 | - Net sales increased by **$16 million** to **$747 million**, driven by **$38 million** in volume, mix, and net new business, partially offset by **$17 million** in customer pricing and **$3 million** in unfavorable currency[118](index=118&type=chunk) - Gross margin improved by **$15 million** to **$99 million**, or **13.3%** of net sales, primarily due to **$24 million** lower net engineering costs and **$20 million** favorable cost performance, which more than offset **$17 million** in annual customer pricing[122](index=122&type=chunk) - Adjusted EBITDA increased by **$25 million** to **$87 million**, benefiting from lower net engineering costs and favorable cost performance, despite decreased volumes and unfavorable product mix[129](index=129&type=chunk) [Results of Operations - Nine Months Ended September 30, 2020 and 2019](index=30&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20September%2030,%202020%20and%202019) This section analyzes Visteon's consolidated results for the nine months ended September 30, 2020, compared to 2019 Consolidated Results of Operations (in millions) | Metric | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | Change | | :----- | :----------------------------- | :----------------------------- | :----- | | Net sales | $1,761 | $2,201 | $(440) | | Gross margin | $156 | $220 | $(64) | | Net income (loss) attributable to Visteon Corporation | $(74) | $35 | $(109) | | Adjusted EBITDA | $117 | $149 | $(32) | - Net sales decreased by **$440 million** to **$1,761 million**, primarily due to **$383 million** from unfavorable volumes (driven by COVID-19) and **$40 million** from customer pricing[134](index=134&type=chunk) - Gross margin decreased by **$64 million** to **$156 million**, or **8.9%** of net sales, significantly impacted by **$174 million** from unfavorable volumes and product mix, partially offset by **$74 million** lower engineering costs and **$82 million** favorable cost performance[137](index=137&type=chunk) - Adjusted EBITDA decreased by **$32 million** to **$117 million**, mainly due to decreased volumes and unfavorable product mix, despite benefits from lower engineering costs and favorable cost performance[145](index=145&type=chunk) [Liquidity](index=33&type=section&id=Liquidity) This section discusses Visteon's liquidity sources, including cash flows, credit facilities, and cash balances - Primary liquidity sources are cash flows from operations, existing cash balances, and available credit facilities. The Company believes these are sufficient to sustain operations and support investments, while closely monitoring and preserving liquidity amidst COVID-19 impacts[147](index=147&type=chunk) - The Company fully repaid the **$400 million** revolving credit facility on September 24, 2020, after borrowing it on March 19, 2020, demonstrating improved financial flexibility[149](index=149&type=chunk) - As of September 30, 2020, total cash was **$435 million**, with **$351 million** located outside the U.S. Of this, **$135 million** is considered permanently reinvested, and repatriation would incur foreign withholding taxes but no U.S. federal taxes[151](index=151&type=chunk) - The Company has **$364 million** available for share repurchases under Board authorization expiring December 31, 2020, but currently does not intend to repurchase additional shares[152](index=152&type=chunk) [Cash Flows](index=34&type=section&id=Cash%20Flows) This section details Visteon's cash flows from operating, investing, and financing activities for the nine-month period - Operating activities generated **$97 million** in cash for the nine months ended September 30, 2020, a **$21 million** decrease from 2019, primarily due to lower Adjusted EBITDA, despite significant cash preservation efforts[155](index=155&type=chunk) - Investing activities used **$77 million**, mainly for **$83 million** in capital expenditures to support new business, partially offset by proceeds from hedging transactions and affiliate loan repayments[156](index=156&type=chunk) - Financing activities used **$60 million**, an increase of **$25 million** from 2019, primarily due to **$37 million** in short-term debt repayments and **$16 million** in share repurchases[158](index=158&type=chunk) [Debt and Capital Structure](index=34&type=section&id=Debt%20and%20Capital%20Structure) This section refers to Note 8 for a comprehensive discussion of Visteon's debt facilities and capital structure - Refer to Note 8, 'Debt,' for a comprehensive discussion of the Company's debt facilities and capital structure[160](index=160&type=chunk) [Significant Accounting Policies and Critical Accounting Estimates](index=34&type=section&id=Significant%20Accounting%20Policies%20and%20Critical%20Accounting%20Estimates) This section refers to Note 1 for details on Visteon's significant accounting policies and critical accounting estimates - Refer to Note 1, 'Summary of Significant Accounting Policies,' for details on the Company's significant accounting policies and critical accounting estimates[161](index=161&type=chunk) [Fair Value Measurements](index=34&type=section&id=Fair%20Value%20Measurements) This section refers to Note 13 for additional information on Visteon's fair value measurements - Refer to Note 13, 'Fair Value Measurements and Financial Instruments,' for additional information on the Company's fair value measurements[162](index=162&type=chunk) [Recent Accounting Pronouncements](index=34&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 1 for information on recently adopted and not yet adopted accounting pronouncements - Refer to Note 1, 'Summary of Significant Accounting Policies,' for information on recently adopted and not yet adopted accounting pronouncements[163](index=163&type=chunk) [Forward-Looking Statements](index=35&type=section&id=Forward-Looking%20Statements) This section highlights forward-looking statements, emphasizing risks and uncertainties, particularly related to COVID-19 impacts - The report contains forward-looking statements subject to risks and uncertainties, and undue reliance should not be placed on them. The Company does not intend to update these statements[164](index=164&type=chunk) - Key factors that could affect future results include the continued impacts of the COVID-19 pandemic (supply chain disruptions, reduced demand), Visteon's ability to meet capital and liquidity requirements, changes in customer operations and vehicle production, increases in commodity costs, and legal/administrative proceedings[165](index=165&type=chunk)[166](index=166&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines Visteon's exposure to market risks, including currency, interest rates, and commodities, and risk management strategies [Foreign Currency Risk](index=37&type=section&id=Foreign%20Currency%20Risk) This section details Visteon's foreign currency risk exposure and the use of derivative instruments for mitigation - The Company is exposed to foreign currency risk from product sales, supplier payments, debt, dividends, and investments in subsidiaries. Derivative financial instruments like forward and option contracts are used to mitigate cash flow variability[168](index=168&type=chunk) - Primary hedged currency exposures include the Japanese yen, euro, Thai baht, and Mexican peso, with a strategy of partial coverage for transactions[168](index=168&type=chunk) - A hypothetical **10%** change in exchange rates would result in a pre-tax gain or loss of **$36 million** for currency derivative financial instruments as of September 30, 2020[170](index=170&type=chunk) [Interest Rate Risk](index=37&type=section&id=Interest%20Rate%20Risk) This section refers to Note 13 for additional information on Visteon's interest rate risk management - Refer to Note 13, 'Fair Value Measurements and Financial Instruments,' for additional information on the Company's interest rate risk management[171](index=171&type=chunk) [Commodity Risk](index=37&type=section&id=Commodity%20Risk) This section describes Visteon's commodity price risk management through negotiations and potential future derivative use - Exposure to commodity price changes is managed primarily through negotiations with suppliers and customers. The Company may use derivatives in the future if suitable hedging instruments are identified[172](index=172&type=chunk) [Item 4 - Controls and Procedures](index=38&type=section&id=Item%204%20-%20Controls%20and%20Procedures) This section confirms the effectiveness of Visteon's disclosure controls and procedures and reports no material changes in internal control - As of September 30, 2020, the Company's Chief Executive Officer and Senior Vice President and Chief Financial Officer concluded that the disclosure controls and procedures were effective[174](index=174&type=chunk) - There were no changes in the Company's internal control over financial reporting during the three months ended September 30, 2020, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[175](index=175&type=chunk) Part II - Other Information [Item 1 - Legal Proceedings](index=39&type=section&id=Item%201%20-%20Legal%20Proceedings) This section refers to Note 14 for detailed information on Visteon's legal proceedings and claims - Information regarding legal proceedings is incorporated by reference from Note 14, 'Commitments and Contingencies,' to the condensed consolidated financial statements[178](index=178&type=chunk) [Item 1A - Risk Factors](index=39&type=section&id=Item%201A%20-%20Risk%20Factors) This section supplements risk factors, emphasizing the adverse impacts of the COVID-19 pandemic on Visteon's business and finances - The COVID-19 pandemic has adversely affected, and may continue to affect, the Company's business, results of operations, and financial condition, leading to supply chain disruptions, market downturns, and reduced consumer demand[180](index=180&type=chunk) - The extent of future impacts from COVID-19 is highly uncertain and depends on developments like new government actions, severity of the virus, and its global economic effects, which could materially affect the Company's financial condition[182](index=182&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms no unregistered sales of equity securities or common stock repurchases during Q3 2020 - No purchases of the Company's common stock were made by or on behalf of the Company or an affiliated purchaser during the third quarter of 2020[183](index=183&type=chunk) [Item 6 - Exhibits](index=39&type=section&id=Item%206%20-%20Exhibits) This section lists the exhibits filed with the report, including certifications and XBRL documents Exhibit Index | Exhibit No. | Description | | :---------- | :---------- | | 31.1 | Rule 13a-14(a) Certification of Chief Executive Officer dated October 29, 2020. | | 31.2 | Rule 13a-14(a) Certification of Senior Vice President, Chief Financial Officer dated October 29, 2020. | | 32.1 | Section 1350 Certification of Chief Executive Officer dated October 29, 2020. | | 32.2 | Section 1350 Certification of Senior Vice President, Chief Financial Officer dated October 29, 2020. | | 101.INS | XBRL Instance Document.** | | 101.SCH | XBRL Taxonomy Extension Schema Document.** | | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document.** | | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document.** | | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document.** | | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document.** | - The Company agrees to furnish copies of certain long-term debt instruments to the SEC upon request[187](index=187&type=chunk)

Financial Performance & Outlook - Visteon's Q2 2020 sales were $371 million[9] - The company experienced a 53% year-over-year decline in production volumes from top customers[10] - Visteon achieved approximately 5% growth-over-market in Q2 2020[10] - The company anticipates a roughly 15% year-over-year decline in customer production for the second half of 2020[14] - Visteon reported $759 million in cash balance at the end of Q2[11] Strategic Initiatives & Market Position - Visteon secured $1.7 billion in new business wins year-to-date[11] - The company estimates the total cockpit electronics market size at $36 billion in 2019[17] - Visteon holds approximately 15% market share in clusters, 4% in audio/infotainment, and 10% in displays for 2019[18] Market Trends & Investment Thesis - Visteon is positioned as a top-5 supplier in the total cockpit electronics market with approximately 8% market share[18] - The company is focused on key market trends including digitization, connectivity, multi-display systems, and electrification[19]

Visteon Corp (NASDAQ:VC) Q2 2020 Earnings Conference Call July 30, 2020 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 Daniel Galves - Wolfe Research Joseph Spak - RBC Capital Markets Mark Delaney - Goldman Sachs Group Emmanuel Rosner - Deutsche Bank Brian Johnson - Barclays Bank Steven Fox - Fox Advisors Kristopher Doyle Good morning. I'm Kris Doyle, Director of Investor Relations fo ...

Part I - Financial Information [Item 1 - Consolidated Financial Statements](index=4&type=section&id=Item%201%20-%20Consolidated%20Financial%20Statements) This section presents Visteon Corporation's unaudited consolidated financial statements, including the Statements of Comprehensive Income (Loss), Balance Sheets, Statements of Cash Flows, and Statements of Changes in Equity, along with detailed notes explaining significant accounting policies, revenue recognition, segment information, earnings per share, restructuring activities, non-consolidated affiliates, inventories, long-lived assets, other assets, debt, other liabilities, employee benefit plans, income taxes, stockholders' equity, and fair value measurements [Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Presents the company's unaudited comprehensive income and loss, including net sales, gross margin, and earnings per share Consolidated Statements of Comprehensive Income (Loss) (in millions) | Metric (in millions) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net sales | $371 | $733 | $1,014 | $1,470 | | Gross margin | $4 | $70 | $57 | $136 | | Income (loss) before income taxes | $(40) | $16 | $(71) | $27 | | Net income (loss) attributable to Visteon Corporation | $(45) | $7 | $(80) | $21 | | Basic earnings (loss) per share | $(1.62) | $0.25 | $(2.87) | $0.75 | | Diluted earnings (loss) per share | $(1.62) | $0.25 | $(2.87) | $0.74 | - Net sales decreased by **$362 million (49.4%)** for the three months ended June 30, 2020, and by **$456 million (31.0%)** for the six months ended June 30, 2020, compared to the same periods in 2019, primarily due to COVID-19 impacts[9](index=9&type=chunk) - The company reported a net loss attributable to Visteon Corporation of **$45 million** for the three months and **$80 million** for the six months ended June 30, 2020, a significant decline from net income of **$7 million** and **$21 million**, respectively, in the prior year[9](index=9&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) Details the company's financial position, including assets, liabilities, and equity at specific dates Consolidated Balance Sheets (in millions) | Metric (in millions) | June 30, 2020 | December 31, 2019 | | :------------------- | :------------ | :---------------- | | Cash and equivalents | $755 | $466 | | Total current assets | $1,426 | $1,345 | | Total assets | $2,320 | $2,271 | | Total current liabilities | $598 | $798 | | Long-term debt, net | $748 | $348 | | Total equity | $468 | $595 | | Total liabilities and equity | $2,320 | $2,271 | - Cash and equivalents increased significantly to **$755 million** as of June 30, 2020, from **$466 million** at December 31, 2019[11](index=11&type=chunk) - Long-term debt, net, more than doubled to **$748 million** as of June 30, 2020, from **$348 million** at December 31, 2019, primarily due to drawing down the revolving credit facility[11](index=11&type=chunk)[56](index=56&type=chunk) - Total current liabilities decreased from **$798 million** to **$598 million**, while total equity decreased from **$595 million** to **$468 million**[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Outlines cash movements from operating, investing, and financing activities over specific periods Consolidated Statements of Cash Flows (in millions) | Metric (in millions) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :------------------- | :----------------------------- | :----------------------------- | | Net cash provided from (used by) operating activities | $(13) | $61 | | Net cash used by investing activities | $(57) | $(67) | | Net cash provided from (used by) financing activities | $363 | $(23) | | Net increase (decrease) in cash | $290 | $(29) | | Cash and restricted cash at end of the period | $759 | $438 | - Operating activities used **$13 million** cash in the first six months of 2020, a significant decrease from **$61 million** generated in the same period of 2019[13](index=13&type=chunk)[156](index=156&type=chunk) - Financing activities provided **$363 million** cash in the first six months of 2020, primarily due to **$400 million** borrowings on the revolving credit facility, compared to a use of **$23 million** in 2019[13](index=13&type=chunk)[159](index=159&type=chunk) [Consolidated Statements of Changes in Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity%20(Unaudited)) Shows changes in stockholders' equity and non-controlling interests over time Consolidated Statements of Changes in Equity (in millions) | Metric (in millions) | December 31, 2019 | June 30, 2020 | | :------------------- | :---------------- | :------------ | | Total Visteon Corporation Stockholders' Equity | $480 | $358 | | Non-controlling Interests | $115 | $110 | | Total Equity | $595 | $468 | - Total Visteon Corporation stockholders' equity decreased by **$122 million** from **$480 million** at December 31, 2019, to **$358 million** at June 30, 2020, primarily due to net losses and other comprehensive losses[16](index=16&type=chunk) - Accumulated other comprehensive loss increased from **$(267) million** to **$(299) million** during the six months ended June 30, 2020[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) Provides detailed explanations and disclosures supporting the consolidated financial statements [NOTE 1. Summary of Significant Accounting Policies](index=8&type=section&id=NOTE%201.%20Summary%20of%20Significant%20Accounting%20Policies) Describes the key accounting principles and policies applied in preparing the financial statements - The company adopted ASU 2016-13 (Credit Losses) and ASU 2019-12 (Income Taxes) effective January 1, 2020, with no material impact on consolidated financial statements[22](index=22&type=chunk)[23](index=23&type=chunk) - The company is evaluating ASU 2020-04 (Reference Rate Reform) and does not expect ASU 2018-14 (Defined Benefit Plans) to have a material impact[25](index=25&type=chunk)[26](index=26&type=chunk) [NOTE 2. Revenue Recognition](index=9&type=section&id=NOTE%202.%20Revenue%20Recognition) Details the company's policies and breakdown of revenue by geographical markets and product lines Geographical Markets (in millions) | Geographical Markets (in millions) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Europe | $132 | $243 | $386 | $505 | | Americas | $62 | $206 | $254 | $396 | | China Domestic | $126 | $121 | $183 | $229 | | China Export | $23 | $65 | $87 | $134 | | Other Asia-Pacific | $38 | $142 | $154 | $299 | | Total Net Sales | $371 | $733 | $1,014 | $1,470 | Product Lines (in millions) | Product Lines (in millions) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Instrument clusters | $201 | $323 | $513 | $637 | | Audio and infotainment | $54 | $184 | $199 | $380 | | Information displays | $54 | $122 | $163 | $245 | | Telematics | $17 | $11 | $29 | $22 | | Other | $45 | $114 | $110 | $186 | | Total Net Sales | $371 | $733 | $1,014 | $1,470 | - Revenue from Europe, Americas, China Export, and Other Asia-Pacific significantly decreased in both three and six-month periods ended June 30, 2020, compared to 2019, while China Domestic saw a slight increase in the three-month period[27](index=27&type=chunk) [NOTE 3. Segment Information](index=9&type=section&id=NOTE%203.%20Segment%20Information) Provides financial data and analysis for the company's reportable operating segments - Visteon operates with one reportable segment, Electronics, which provides vehicle cockpit electronics products[29](index=29&type=chunk) Adjusted EBITDA (in millions) | Adjusted EBITDA (in millions) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :---------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) attributable to Visteon Corporation | $(45) | $7 | $(80) | $21 | | Adjusted EBITDA | $(3) | $46 | $30 | $87 | - Adjusted EBITDA decreased significantly, reporting a loss of **$3 million** for the three months and **$30 million** for the six months ended June 30, 2020, down from **$46 million** and **$87 million** respectively in 2019[32](index=32&type=chunk) [NOTE 4. Earnings Per Share](index=11&type=section&id=NOTE%204.%20Earnings%20Per%20Share) Explains the calculation of basic and diluted earnings per share, including relevant adjustments EPS (in millions, except per share amounts) | EPS (in millions, except per share amounts) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) attributable to Visteon | $(45) | $7 | $(80) | $21 | | Average common stock outstanding - basic | 27.8 | 28.1 | 27.9 | 28.1 | | Basic earnings (loss) per share | $(1.62) | $0.25 | $(2.87) | $0.75 | | Diluted earnings (loss) per share | $(1.62) | $0.25 | $(2.87) | $0.74 | - Basic and diluted EPS both declined to a loss of **$1.62** for the three months and **$2.87** for the six months ended June 30, 2020, from positive EPS in the prior year, reflecting the net loss[35](index=35&type=chunk) - Performance-based share units were excluded from diluted EPS calculation for 2020 as their inclusion would have been anti-dilutive[35](index=35&type=chunk) [NOTE 5. Restructuring Activities](index=12&type=section&id=NOTE%205.%20Restructuring%20Activities) Details the nature and financial impact of the company's restructuring programs and related reserves - The company recorded **$4 million** and **$37 million** in net restructuring expense for the three and six months ended June 30, 2020, respectively, compared to **$0** and **$1 million** in 2019[36](index=36&type=chunk) - New restructuring programs were approved in January and March 2020, impacting European engineering/administrative functions and global facilities, with **$21 million** and **$15 million** recorded respectively for the six months ended June 30, 2020[37](index=37&type=chunk)[38](index=38&type=chunk) Restructuring Reserves (in millions) | Restructuring Reserves (in millions) | Amount | | :----------------------------------- | :----- | | December 31, 2019 | $10 | | Expense | $33 | | Utilization | $(6) | | Foreign currency | $(1) | | March 31, 2020 | $36 | | Expense | $1 | | Change in estimate | $3 | | Utilization | $(9) | | Foreign currency | $1 | | June 30, 2020 | $32 | [NOTE 6. Non-Consolidated Affiliates](index=13&type=section&id=NOTE%206.%20Non-Consolidated%20Affiliates) Describes investments in and financial exposure to non-consolidated entities, such as joint ventures - Visteon holds a **50% interest** in Yanfeng Visteon Investment Co., Ltd. (YFVIC), which is determined to be a Variable Interest Entity (VIE) but not consolidated as Visteon is not the primary beneficiary[45](index=45&type=chunk)[47](index=47&type=chunk) Exposure to loss in YFVIC (in millions) | Exposure to loss in YFVIC (in millions) | June 30, 2020 | December 31, 2019 | | :-------------------------------------- | :------------ | :---------------- | | Investment in YFVIC | $43 | $43 | | Receivables due from YFVIC | $39 | $41 | | Subordinated loan receivable from YFVIC | $6 | $8 | | Maximum exposure to loss in YFVIC | $88 | $92 | [NOTE 7. Inventories](index=14&type=section&id=NOTE%207.%20Inventories) Presents the composition and valuation of the company's inventory balances Inventories, net (in millions) | Inventories, net (in millions) | June 30, 2020 | December 31, 2019 | | :----------------------------- | :------------ | :---------------- | | Raw materials | $111 | $100 | | Work-in-process | $24 | $28 | | Finished products | $35 | $41 | | Total | $170 | $169 | - Total inventories remained stable at **$170 million** as of June 30, 2020, compared to **$169 million** at December 31, 2019, with a slight increase in raw materials[48](index=48&type=chunk) [NOTE 8. Long-Lived Assets](index=14&type=section&id=NOTE%208.%20Long-Lived%20Assets) Details the company's property, plant, equipment, and intangible assets, including impairment considerations Intangible assets, net (in millions) | Intangible assets, net (in millions) | June 30, 2020 | December 31, 2019 | | :----------------------------------- | :------------ | :---------------- | | Definite-Lived | $80 | $81 | | Indefinite-Lived (Goodwill) | $45 | $46 | | Total | $125 | $127 | - Total intangible assets, net, decreased slightly to **$125 million** as of June 30, 2020, from **$127 million** at December 31, 2019[49](index=49&type=chunk) - The company performed an impairment analysis due to COVID-19 but concluded there was no impairment of long-lived assets as of June 30, 2020[51](index=51&type=chunk) [NOTE 9. Other Assets](index=16&type=section&id=NOTE%209.%20Other%20Assets) Outlines the components of other current and non-current assets, such as recoverable taxes and joint venture receivables Other Current Assets (in millions) | Other Current Assets (in millions) | June 30, 2020 | December 31, 2019 | | :--------------------------------- | :------------ | :---------------- | | Recoverable taxes | $51 | $61 | | Joint venture receivables | $39 | $41 | | Contractually reimbursable engineering costs | $35 | $29 | | Total | $163 | $193 | Other Non-Current Assets (in millions) | Other Non-Current Assets (in millions) | June 30, 2020 | December 31, 2019 | | :------------------------------------- | :------------ | :---------------- | | Deferred tax assets | $57 | $59 | | Contractually reimbursable engineering costs | $33 | $24 | | Recoverable taxes | $19 | $28 | | Total | $146 | $150 | - The company sold **$73 million** of China bank notes during the six months ended June 30, 2020, compared to **$36 million** in 2019[52](index=52&type=chunk) [NOTE 10. Debt](index=17&type=section&id=NOTE%2010.%20Debt) Provides comprehensive information on the company's short-term and long-term debt, including terms and covenants Debt (in millions) | Debt (in millions) | June 30, 2020 | December 31, 2019 | | :----------------- | :------------ | :---------------- | | Short-term debt | $22 | $37 | | Long-term debt, net | $748 | $348 | | Total Debt | $770 | $385 | - Long-term debt significantly increased to **$748 million** as of June 30, 2020, from **$348 million** at December 31, 2019, primarily due to borrowing the full **$400 million** from the revolving credit facility to enhance liquidity amidst COVID-19 uncertainty[54](index=54&type=chunk)[56](index=56&type=chunk) - The company was in compliance with all debt covenants as of June 30, 2020, with Term Facility and Revolving Credit Facility loans accruing interest at **2.79%** and **2.99%** respectively[57](index=57&type=chunk)[58](index=58&type=chunk) [NOTE 11. Other Liabilities](index=18&type=section&id=NOTE%2011.%20Other%20Liabilities) Details the composition of other current and non-current liabilities, including warranty accruals and restructuring reserves Other Current Liabilities (in millions) | Other Current Liabilities (in millions) | June 30, 2020 | December 31, 2019 | | :------------------------------------ | :------------ | :---------------- | | Product warranty and recall accruals | $37 | $34 | | Restructuring reserves | $32 | $10 | | Deferred income | $20 | $22 | | Total | $156 | $147 | Other Non-Current Liabilities (in millions) | Other Non-Current Liabilities (in millions) | June 30, 2020 | December 31, 2019 | | :---------------------------------------- | :------------ | :---------------- | | Derivative financial instruments | $17 | $14 | | Product warranty and recall accruals | $12 | $15 | | Deferred income | $8 | $9 | | Total | $62 | $72 | - Restructuring reserves within current liabilities increased significantly to **$32 million** as of June 30, 2020, from **$10 million** at December 31, 2019[62](index=62&type=chunk) [NOTE 12. Employee Benefit Plans](index=19&type=section&id=NOTE%2012.%20Employee%20Benefit%20Plans) Describes the company's pension and other post-employment benefit plans, including costs and contributions Net Pension Benefit (Cost) (in millions) | Net Pension Benefit (Cost) (in millions) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | U.S. Plans | $2 | $3 | $5 | $5 | | Non-U.S. Plans | $(2) | $(1) | $(2) | $(1) | - Required 2020 contributions to defined benefit plans are approximately **$20 million**, with **$2 million** already contributed to non-U.S. plans. The company is evaluating deferral opportunities due to COVID-19 relief measures[66](index=66&type=chunk) [NOTE 13. Income Taxes](index=19&type=section&id=NOTE%2013.%20Income%20Taxes) Explains the company's income tax provision, effective tax rate, and deferred tax assets and liabilities - The provision for income tax on continuing operations was **$2 million** and **$7 million** for the three and six months ended June 30, 2020, respectively, reflecting profitability in certain countries and valuation allowances in others[67](index=67&type=chunk) - Pretax losses in jurisdictions with valuation allowances totaled **$101 million** for the six months ended June 30, 2020, significantly increasing the effective tax rate[67](index=67&type=chunk) - The company maintains a full valuation allowance against U.S. net deferred tax assets due to prevailing uncertainty from COVID-19 and softening production volumes, but a partial release is possible within 12-24 months if U.S. operating results improve[70](index=70&type=chunk) [NOTE 14. Stockholders' Equity and Non-controlling Interests](index=22&type=section&id=NOTE%2014.%20Stockholders'%20Equity%20and%20Non-controlling%20Interests) Details changes in equity, including stock repurchases, and the breakdown of non-controlling interests - The company purchased **233,769 shares** of common stock for **$16 million** in Q1 2020. As of June 30, 2020, **$364 million** remains available for repurchases, but the company does not intend to repurchase additional shares[77](index=77&type=chunk) Non-Controlling Interests (in millions) | Non-Controlling Interests (in millions) | June 30, 2020 | December 31, 2019 | | :-------------------------------------- | :------------ | :---------------- | | Yanfeng Visteon Automotive Electronics Co., Ltd. | $49 | $56 | | Shanghai Visteon Automotive Electronics, Co., Ltd. | $42 | $41 | | Changchun Visteon FAWAY Electronics, Co., Ltd. | $18 | $17 | | Other | $1 | $1 | | Total | $110 | $115 | Accumulated Other Comprehensive Income (Loss) (in millions) | Accumulated Other Comprehensive Income (Loss) (in millions) | June 30, 2020 | December 31, 2019 | | :-------------------------------------------------------- | :------------ | :---------------- | | Beginning balance | $(267) | $(216) | | Ending balance | $(299) | $(215) | [NOTE 15. Fair Value Measurements and Financial Instruments](index=23&type=section&id=NOTE%2015.%20Fair%20Value%20Measurements%20and%20Financial%20Instruments) Describes the company's use of derivative instruments and fair value hierarchy for financial assets and liabilities - The company uses derivative financial instruments (forward contracts, cross-currency swaps, interest rate swaps) to manage exposure to currency exchange rates and interest rates, classifying them as Level 2 in the fair value hierarchy[81](index=81&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk)[86](index=86&type=chunk)[88](index=88&type=chunk) - As of June 30, 2020, the company had foreign currency derivative instruments with gross notional values of **$46 million**, cross-currency swaps of **$250 million**, and interest rate swaps of **$300 million**[85](index=85&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk) - The fair value of debt was **$759 million** as of June 30, 2020, up from **$390 million** at December 31, 2019, classified as Level 2[91](index=91&type=chunk) [NOTE 16. Commitments and Contingencies](index=26&type=section&id=NOTE%2016.%20Commitments%20and%20Contingencies) Outlines the company's legal proceedings, warranty obligations, and other significant commitments and contingent liabilities - The company is involved in litigation with Van Buren Township for **$28 million** related to bond payment obligations and is defending the matter vigorously[95](index=95&type=chunk) - OFAC is reviewing voluntary self-disclosures regarding sales into Iran totaling **$12 million**, which could result in civil penalties[96](index=96&type=chunk) Product Warranty and Recall Claims Liability (in millions) | Product Warranty and Recall Claims Liability (in millions) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :------------------------------------------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $49 | $48 | | Accruals for products shipped | $7 | $10 | | Settlements | $(10) | $(9) | | Ending balance | $49 | $54 | [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Visteon's financial condition, results of operations, and cash flows, highlighting strategic priorities, COVID-19 impacts, and response actions [Executive Summary](index=28&type=section&id=Executive%20Summary) Provides an overview of Visteon's strategic priorities, business focus, and response to the COVID-19 pandemic - Visteon is a global automotive supplier focused on cockpit electronics and connected car solutions, anticipating growth as the cockpit transitions to digital, connected, and advanced safety features[106](index=106&type=chunk) - **Strategic Priorities:** Technology Innovation (DriveCore™ platform), Long-Term Growth and Margin Expansion (winning elevated business), Enhance Shareholder Returns (returned **$3.3 billion** since 2015) - **COVID-19 Response:** Enhanced liquidity by drawing **$400 million** from revolving credit facility, announced restructuring programs, implemented temporary global compensation reductions (CEO **40%**, executive committee **30%**, other employees **20%**), and produced protective face shields[107](index=107&type=chunk) [Global Automotive Market Conditions and Production Levels](index=29&type=section&id=Global%20Automotive%20Market%20Conditions%20and%20Production%20Levels) Analyzes global light vehicle production trends and market conditions, particularly impacted by COVID-19 - Second quarter 2020 global light vehicle production decreased **45%** year-over-year due to COVID-19, with significant declines across all regions except China, which saw a **7.1% increase** in Q2 2020[111](index=111&type=chunk)[112](index=112&type=chunk) Light Vehicle Production (Units in millions) | Light Vehicle Production (Units in millions) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Change (%) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | Change (%) | | :----------------------------------------- | :------------------------------- | :------------------------------- | :--------- | :------------------------------- | :------------------------------- | :--------- | | China | 6.0 | 5.6 | 7.1% | 9.3 | 11.7 | (20.9)% | | Other Asia Pacific | 2.4 | 5.5 | (55.7)% | 7.4 | 11.1 | (33.3)% | | Europe | 2.1 | 5.6 | (62.3)% | 6.8 | 11.2 | (39.3)% | | Americas | 1.5 | 5.1 | (71.3)% | 5.9 | 10.2 | (42.1)% | | Global | 12.3 | 22.3 | (44.9)% | 30.1 | 45.2 | (33.4)% | [Results of Operations - Three Months Ended June 30, 2020 and 2019](index=30&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202020%20and%202019) Compares the company's financial performance for the three-month periods, focusing on sales, margins, and profitability Results of Operations - Three Months Ended June 30 (in millions) | Metric (in millions) | 2020 | 2019 | Change | | :------------------- | :--- | :--- | :----- | | Net sales | $371 | $733 | $(362) | | Gross margin | $4 | $70 | $(66) | | Net income (loss) attributable to Visteon Corporation | $(45) | $7 | $(52) | | Adjusted EBITDA | $(3) | $46 | $(49) | - Net sales decreased by **$362 million**, primarily due to **$350 million** from lower volumes and net new business driven by COVID-19 impacts[115](index=115&type=chunk) - Gross margin declined by **$66 million**, from **$70 million (9.5% of sales)** in 2019 to **$4 million (1.1% of sales)** in 2020, mainly due to unfavorable volumes and product mix (**$127 million** impact)[118](index=118&type=chunk) - Net loss attributable to Visteon was **$45 million**, a **$52 million** decrease from prior year's net income, driven by lower gross margin and higher restructuring expense, partially offset by reduced SG&A and income taxes[125](index=125&type=chunk) [Results of Operations - Six Months Ended June 30, 2020 and 2019](index=33&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202020%20and%202019) Compares the company's financial performance for the six-month periods, focusing on sales, margins, and profitability Results of Operations - Six Months Ended June 30 (in millions) | Metric (in millions) | 2020 | 2019 | Change | | :------------------- | :--- | :--- | :----- | | Net sales | $1,014 | $1,470 | $(456) | | Gross margin | $57 | $136 | $(79) | | Net income (loss) attributable to Visteon Corporation | $(80) | $21 | $(101) | | Adjusted EBITDA | $30 | $87 | $(57) | - Net sales decreased by **$456 million**, primarily due to **$421 million** from unfavorable volumes and net new business driven by COVID-19[131](index=131&type=chunk) - Gross margin declined by **$79 million**, from **$136 million (9.3% of sales)** in 2019 to **$57 million (5.6% of sales)** in 2020, mainly due to unfavorable volumes and product mix (**$162 million** impact)[134](index=134&type=chunk) - Net loss attributable to Visteon was **$80 million**, a **$101 million** decrease from prior year's net income, primarily due to higher restructuring expense (**$36 million**), decreased gross margin (**$79 million**), and higher income tax provision (**$4 million**)[143](index=143&type=chunk) [Liquidity](index=36&type=section&id=Liquidity) Discusses the company's sources and uses of cash, including cash balances, credit facilities, and capital allocation - The company's primary liquidity sources are cash flows from operations, existing cash balances, and available credit facilities, which are believed to be sufficient despite COVID-19 challenges[147](index=147&type=chunk) - As of June 30, 2020, total cash was **$759 million** (including **$4 million** restricted cash), with **$342 million** located outside the U.S., of which **$145 million** is considered permanently reinvested[151](index=151&type=chunk) - The company has **$350 million** in term loan debt and **$400 million** outstanding from its revolving credit facility, fully drawn on March 19, 2020[149](index=149&type=chunk) - The company does not intend to repurchase additional shares, despite **$364 million** remaining under Board authorization[152](index=152&type=chunk) [Cash Flows](index=38&type=section&id=Cash%20Flows) Analyzes cash generated from or used in operating, investing, and financing activities - Operating activities used **$13 million** cash during the six months ended June 30, 2020, a **$74 million** decrease from the prior year, primarily due to lower adjusted EBITDA and reduced cash from trade working capital[156](index=156&type=chunk) - Investing activities used **$57 million**, including **$65 million** in capital expenditures, a slight decrease from **$67 million** used in 2019[157](index=157&type=chunk)[158](index=158&type=chunk) - Financing activities generated **$363 million**, primarily from **$400 million** in revolving credit facility borrowings, offsetting share repurchases and dividends[159](index=159&type=chunk) [Debt and Capital Structure](index=38&type=section&id=Debt%20and%20Capital%20Structure) Refers to detailed information on the company's debt facilities and capital structure - Refer to Note 10, 'Debt' for detailed information on the company's debt facilities[161](index=161&type=chunk) [Significant Accounting Policies and Critical Accounting Estimates](index=38&type=section&id=Significant%20Accounting%20Policies%20and%20Critical%20Accounting%20Estimates) Refers to detailed information on the company's key accounting policies and estimates - Refer to Note 1, 'Summary of Significant Accounting Policies' for detailed information[162](index=162&type=chunk) [Fair Value Measurements](index=38&type=section&id=Fair%20Value%20Measurements) Refers to detailed information on the company's fair value measurements and financial instruments - Refer to Note 15, 'Fair Value Measurements and Financial Instruments' for detailed information[163](index=163&type=chunk) [Recent Accounting Pronouncements](index=38&type=section&id=Recent%20Accounting%20Pronouncements) Refers to detailed information on recently adopted and evaluated accounting standards - Refer to Note 1, 'Summary of Significant Accounting Policies' for detailed information[164](index=164&type=chunk) [Item 3 - Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines the company's exposure to market risks, including changes in currency exchange rates, interest rates, and commodity prices, and how these risks are managed - Visteon is exposed to foreign currency risk (Euro, Japanese Yen, Thai Baht, Mexican Peso), interest rate risk, and commodity price risk[169](index=169&type=chunk)[170](index=170&type=chunk) - Derivative financial instruments are used for hedging, not speculation, to mitigate market risks, with counterparties being major financial institutions[169](index=169&type=chunk) - A hypothetical **10%** change in currency exchange rates would result in a pre-tax gain or loss of **$33 million** for currency derivative financial instruments as of June 30, 2020[172](index=172&type=chunk) [Item 4 - Controls and Procedures](index=42&type=section&id=Item%204%20-%20Controls%20and%20Procedures) This section confirms the effectiveness of Visteon's disclosure controls and procedures and reports no material changes in internal control over financial reporting - The company's disclosure controls and procedures were effective as of June 30, 2020[176](index=176&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2020[177](index=177&type=chunk) Part II - Other Information [Item 1 - Legal Proceedings](index=43&type=section&id=Item%201%20-%20Legal%20Proceedings) This section refers to Note 16, 'Commitments and Contingencies,' for details on legal proceedings, which include litigation with Van Buren Township and an ongoing OFAC review - Legal proceedings information is incorporated by reference from Note 16, 'Commitments and Contingencies'[180](index=180&type=chunk) [Item 1A - Risk Factors](index=43&type=page&id=Item%201A%20-%20Risk%20Factors) This section supplements the risk factors from the Annual Report on Form 10-K, highlighting the adverse impacts of the COVID-19 pandemic on the company's business and financial condition - The COVID-19 pandemic has adversely affected and may continue to affect the company's business, operations, and financial condition[182](index=182&type=chunk) - Disruptions or delays in the supply chain, potentially leading to higher costs - Significant decline in demand from customers due to containment efforts - Potential delays or abandonment of customer projects[182](index=182&type=chunk)[183](index=183&type=chunk) - The extent of future COVID-19 impacts is highly uncertain and could significantly heighten other business risks, including liquidity and indebtedness[184](index=184&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or purchases of the company's common stock during the second quarter of 2020 - No purchases of the company's common stock were made by or on behalf of the company during the second quarter of 2020[185](index=185&type=chunk) [Item 6 - Exhibits](index=43&type=section&id=Item%206%20-%20Exhibits) This section lists the exhibits filed with the report, including certifications from the CEO and CFO, and XBRL instance and taxonomy documents - The exhibit index is located on page 40 and includes certifications (Rule 13a-14(a) and Section 1350) from the Chief Executive Officer and Senior Vice President, Chief Financial Officer, dated July 30, 2020[187](index=187&type=chunk)[188](index=188&type=chunk) - XBRL Instance and Taxonomy Extension Documents are included as Exhibit 101[188](index=188&type=chunk)

Deutsche Bank Global Auto Industry Conference June 2020 Forward-Looking Information • This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecasts" and similar expressions identify certain of these forward-looking statements. Forward-looking statements are not guarantees of future results and cond ...

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, 2020 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) | Sta ...