This document is Visteon Corporation's Form 10-Q/A for the quarter ended March 31, 2004, which includes restated financial statements. The restatements are primarily due to errors in accounting for retiree health benefits, tooling costs, volume rebates, pension expenses, and taxes. The corrections resulted in a decrease to net income of $5 million for Q1 2004 and an increase to net loss of $4 million for Q1 2003. The form amends and restates items in the original filing and provides updated certifications while describing conditions as of the original filing date.
This document is Visteon Corporation's Form 10-Q/A, which provides amended quarterly financial statements for the periods ended September 30, 2004 and 2003. The financial statements and notes are being restated to correct errors related to retiree health care expenses, tooling costs, pension expenses, capital equipment discounts, and tax adjustments. The restatements increased Visteon's pre-tax loss for the third quarter of 2004 by $62 million and for the first nine months of 2004 by $80 million.
This document is Visteon Corporation's Form 10-Q/A filing with the SEC, which restates financial results for the second quarter and first half of 2004 as well as the comparable periods of 2003. The restatements are primarily due to corrections made for retiree health care expenses, tooling costs, capital equipment rebates, foreign pension expenses, and tax adjustments. The corrections resulted in decreases to net income of $5 million and $10 million for the second quarter and first half of 2004, respectively, and increases to net losses of $4 million and $8 million for the comparable periods of 2003.
This document is Visteon Corporation's annual report (Form 10-K/A) filed with the SEC, which provides an amendment and restatement of Visteon's annual report for the year ended December 31, 2003. The restatement is primarily due to corrections made for retiree healthcare benefits, tooling costs, volume rebates, inventory costs, pension expenses, and tax adjustments. The restatement increased Visteon's reported net loss for 2003 by approximately $80 million. The annual report provides an overview of Visteon's business, including information on its automotive operations and glass operations segments, and discusses trends in the automotive parts industry.
This document is an amendment to a previously filed Form 10-Q for AES Corp for the quarterly period ended June 30, 2005. It restates items 1, 2, and 4 of Part I and item 6 of Part II to correct accounting errors related to derivative instruments, hedging activities, minority interest expense, and income taxes. These errors resulted in a $12 million reduction of stockholders' equity as of January 1, 2003 and an increase in previously reported net income of $40 million and $34 million for the three and six month periods ended June 30, 2004, respectively. The condensed consolidated financial statements and other financial information provided in the document have been restated to correct these errors.
This document is an amendment to a quarterly report filed with the SEC by Calpine Corporation. It provides revised or additional disclosure for the company's financial statements, management discussion/analysis, and controls/procedures for the quarter ended March 31, 2004. Specifically, it includes:
1) Calpine's consolidated balance sheets, statements of operations, and cash flows for Q1 2004 and 2003.
2) Notes to the financial statements providing additional details.
3) An explanatory note stating this amendment was filed in connection with an SEC review and resulted in expanded disclosure but no changes to financial statements.
4) Sections on management discussion/analysis of financial condition, market risk, and controls/pro
johnson controls FY2005 2nd Quarter Form 10-QA finance8
This document is Johnson Controls' Form 10-Q/A for the quarterly period ending March 31, 2005. It provides restated financial statements and notes to correct for the improper consolidation of a North American joint venture. The restatement impacts the presentation of certain financial data but does not change previously reported income, net income, or earnings per share. The document includes unaudited consolidated statements of financial position, income, and cash flows for the periods presented. It also provides notes to the financial statements and management's discussion and analysis of financial condition and results of operations.
This document is an amendment to AES Corp's previously filed Form 10-Q for the quarter ending September 30, 2005. It restates financial statements and disclosures to correct errors related to accounting for derivative instruments, income taxes, and minority interest. Specifically, it restates the condensed consolidated balance sheet as of September 30, 2005 and statements of operations and cash flows for quarters in 2004. The errors reduced previously reported net income for one quarter and increased it for another quarter, and reduced stockholders' equity as of January 1, 2003.
This document is International Paper Company's Form 10-Q filing for the quarterly period ended March 31, 2003. [1] It provides International Paper's unaudited financial statements including the consolidated statement of earnings, balance sheet, statement of cash flows, and statement of common shareholders' equity for the periods ended March 31, 2003 and 2002. [2] It also includes notes to the financial statements and sections for management's discussion of financial condition and results of operations, quantitative and qualitative market risk disclosures, and controls and procedures. [3]
This document is Visteon Corporation's Form 10-Q/A, which provides amended quarterly financial statements for the periods ended September 30, 2004 and 2003. The financial statements and notes are being restated to correct errors related to retiree health care expenses, tooling costs, pension expenses, capital equipment discounts, and tax adjustments. The restatements increased Visteon's pre-tax loss for the third quarter of 2004 by $62 million and for the first nine months of 2004 by $80 million.
This document is Visteon Corporation's Form 10-Q/A filing with the SEC, which restates financial results for the second quarter and first half of 2004 as well as the comparable periods of 2003. The restatements are primarily due to corrections made for retiree health care expenses, tooling costs, capital equipment rebates, foreign pension expenses, and tax adjustments. The corrections resulted in decreases to net income of $5 million and $10 million for the second quarter and first half of 2004, respectively, and increases to net losses of $4 million and $8 million for the comparable periods of 2003.
This document is Visteon Corporation's annual report (Form 10-K/A) filed with the SEC, which provides an amendment and restatement of Visteon's annual report for the year ended December 31, 2003. The restatement is primarily due to corrections made for retiree healthcare benefits, tooling costs, volume rebates, inventory costs, pension expenses, and tax adjustments. The restatement increased Visteon's reported net loss for 2003 by approximately $80 million. The annual report provides an overview of Visteon's business, including information on its automotive operations and glass operations segments, and discusses trends in the automotive parts industry.
This document is an amendment to a previously filed Form 10-Q for AES Corp for the quarterly period ended June 30, 2005. It restates items 1, 2, and 4 of Part I and item 6 of Part II to correct accounting errors related to derivative instruments, hedging activities, minority interest expense, and income taxes. These errors resulted in a $12 million reduction of stockholders' equity as of January 1, 2003 and an increase in previously reported net income of $40 million and $34 million for the three and six month periods ended June 30, 2004, respectively. The condensed consolidated financial statements and other financial information provided in the document have been restated to correct these errors.
This document is an amendment to a quarterly report filed with the SEC by Calpine Corporation. It provides revised or additional disclosure for the company's financial statements, management discussion/analysis, and controls/procedures for the quarter ended March 31, 2004. Specifically, it includes:
1) Calpine's consolidated balance sheets, statements of operations, and cash flows for Q1 2004 and 2003.
2) Notes to the financial statements providing additional details.
3) An explanatory note stating this amendment was filed in connection with an SEC review and resulted in expanded disclosure but no changes to financial statements.
4) Sections on management discussion/analysis of financial condition, market risk, and controls/pro
johnson controls FY2005 2nd Quarter Form 10-QA finance8
This document is Johnson Controls' Form 10-Q/A for the quarterly period ending March 31, 2005. It provides restated financial statements and notes to correct for the improper consolidation of a North American joint venture. The restatement impacts the presentation of certain financial data but does not change previously reported income, net income, or earnings per share. The document includes unaudited consolidated statements of financial position, income, and cash flows for the periods presented. It also provides notes to the financial statements and management's discussion and analysis of financial condition and results of operations.
This document is an amendment to AES Corp's previously filed Form 10-Q for the quarter ending September 30, 2005. It restates financial statements and disclosures to correct errors related to accounting for derivative instruments, income taxes, and minority interest. Specifically, it restates the condensed consolidated balance sheet as of September 30, 2005 and statements of operations and cash flows for quarters in 2004. The errors reduced previously reported net income for one quarter and increased it for another quarter, and reduced stockholders' equity as of January 1, 2003.
This document is International Paper Company's Form 10-Q filing for the quarterly period ended March 31, 2003. [1] It provides International Paper's unaudited financial statements including the consolidated statement of earnings, balance sheet, statement of cash flows, and statement of common shareholders' equity for the periods ended March 31, 2003 and 2002. [2] It also includes notes to the financial statements and sections for management's discussion of financial condition and results of operations, quantitative and qualitative market risk disclosures, and controls and procedures. [3]
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2006. It includes Visteon's unaudited consolidated financial statements for the first quarter of 2006, showing net sales of $2.961 billion, cost of sales of $2.745 billion, and a net loss of $88 million. It also includes management's discussion of the company's financial condition and operating results, and certifications that the report does not contain any false or misleading statements.
This document is International Paper Company's Form 10-Q filing for the quarterly period ended March 31, 2004. It includes International Paper's consolidated financial statements, including statements of earnings, balance sheets, cash flows, and shareholders' equity. It also includes notes to the financial statements and sections on management's discussion of financial condition, results of operations, quantitative and qualitative market risk disclosures, and controls and procedures. The financial statements show that for the quarter ended March 31, 2004, International Paper reported net earnings of $73 million on net sales of $6.4 billion.
- The document is Goodyear Tire & Rubber Company's Form 10-Q/A for the quarterly period ended March 31, 2004, which includes restated financial statements and notes for that period as well as the comparable period in 2003.
- Goodyear is restating its financial statements for 2003 and prior periods due to accounting errors. The restatement adjustments are described in Note 1A and Note 2.
- For the quarter ended March 31, 2004, Goodyear reported a net loss of $78.1 million compared to a net loss of $200.5 million in the comparable period of 2003.
This document is Toll Brothers' quarterly report filed with the SEC for the period ended July 31, 2004. It includes condensed consolidated financial statements such as the balance sheet, income statement, and cash flow statement. It also provides notes to the financial statements and disclosures on forward-looking statements, accounting policies, and subsequent events. The financial statements show that for the nine months ended July 31, 2004, Toll Brothers increased its revenues over the same period the prior year and reported net income of $228.5 million.
This document is Toll Brothers Inc.'s quarterly report filed with the SEC for the quarter ending April 30, 2005. It includes condensed consolidated financial statements such as the balance sheet, income statement, and cash flow statement. It also includes notes to the financial statements and sections for management's discussion of financial conditions, market risk disclosures, and controls and procedures. The financial statements show that for the six months ending April 30, 2005, Toll Brothers had net income of $280 million on revenues of $2.2 billion, with basic earnings per share of $3.66.
This document is PACCAR Inc's quarterly report (Form 10-Q) for the period ending June 30, 2004 filed with the SEC. It includes:
1) Financial statements such as the consolidated balance sheet, income statement, and cash flow statement for the quarter.
2) Notes to the financial statements providing additional information and disclosure.
3) Certification by management of the accuracy of the financial statements and internal controls.
The summary highlights that this is PACCAR's regulatory filing, includes their quarterly financial statements, and notes to those statements as required by the SEC. It covers the essential information in 3 sentences as requested.
This document is Toll Brothers, Inc.'s quarterly report filed with the SEC for the quarter ended January 31, 2004 on Form 10-Q. It includes Toll Brothers' condensed consolidated financial statements, management's discussion and analysis of financial condition and results of operations, and certifications regarding disclosure controls and procedures. The financial statements show that for the quarter ended January 31, 2004, Toll Brothers had revenues of $597.9 million, net income of $50.1 million, and earnings per share of $0.68 on a basic basis and $0.62 on a diluted basis. Inventory increased to $3.27 billion from $3.08 billion at the end of the prior fiscal year.
This document is International Paper Company's Form 10-Q quarterly report filed with the SEC for the quarter ended March 31, 2002. It includes International Paper's consolidated financial statements for the quarter, including statements of earnings, balance sheets, cash flows, and shareholders' equity. It also includes management's discussion and analysis of the financial results, quantitative and qualitative disclosures about market risk, legal proceedings information, and certifications.
This document is Toll Brothers' quarterly report filed with the SEC for the quarter ending January 31, 2005. It includes condensed consolidated financial statements and notes. The financial statements show that for the quarter, Toll Brothers had revenues of $999 million, net income of $110 million, and earnings per share of $1.33. Cash flows were negative for the quarter due to increased inventory purchases exceeding cash generated from home sales.
Clear Channel Communications reported financial results for the fourth quarter and full year 2004. For the quarter, revenue increased 1% to $2.31 billion and income was $214.3 million. For the full year, revenue grew 5% to $9.4 billion and income was $845.8 million. The company repurchased $2.1 billion of its stock and paid $265.2 million in dividends in 2004. Operationally, Clear Channel focused on improving its existing businesses and leading change in the industries in which it operates.
This document is an amendment to a previously filed Form 10-K for ConAgra Foods Inc. It provides restated financial statements for fiscal years 2004, 2003 and 2002, and the first two quarters of fiscal 2005 due to errors discovered in income tax accounting. The errors resulted in an aggregate net increase in income tax expense of approximately $105 million for the periods affected. As a result of the restatement, ending stockholders' equity was reduced by $45.6 million as of May 30, 2004. The filing amends and restates items 6, 7, 8, 9A and 15 to reflect the restatement and its effects.
This document is a Form 8-K filed by YRC Worldwide Inc. with the Securities and Exchange Commission on February 13, 2006. It summarizes that YRC is revising its previously reported diluted earnings per share for the three and twelve months ended December 31, 2005 due to an accounting error related to foreign currency entries at its Canadian subsidiary Reimer Express. The revision has no impact on operating income. YRC also reports lower than estimated capital expenditures for 2005.
This document is Toll Brothers' Form 10-Q quarterly report filed with the SEC for the quarter ended April 30, 2003. It includes condensed consolidated financial statements such as the balance sheet, income statement, and cash flow statement, as well as notes to the financial statements. The financial statements show that for the quarter ended April 30, 2003, Toll Brothers had revenues of $607.9 million, net income of $52.9 million, and basic earnings per share of $0.76. Cash and cash equivalents increased to $211.3 million from $102.3 million at the end of the previous fiscal year.
This document is Toll Brothers' Form 10-Q quarterly report filed with the SEC for the quarter ended July 31, 2005. The summary includes:
1) Toll Brothers reported revenues of $3.8 billion for the nine months ended July 31, 2005, with net income of $495.8 million.
2) As of July 31, 2005, Toll Brothers had $5.9 billion in total assets, $3.4 billion in total liabilities, and $2.5 billion in total stockholders' equity.
3) For the three months ended July 31, 2005, Toll Brothers reported revenues of $1.6 billion and net income of $215.5 million.
johnson controls FY2007 1st Quarter Form 10-Q finance8
This document is a Form 10-Q quarterly report filed by Johnson Controls with the SEC for the quarter ended December 31, 2006. It includes:
1) Financial statements such as the balance sheet, income statement, and cash flow statement for the quarter.
2) A discussion of the company's financial condition and results of operations for the quarter.
3) Information on legal proceedings, risks, shareholder votes, and certifications by management.
The document discusses Baxter International's 2000 Annual Report. It highlights that the number of people suffering from life-threatening conditions is growing rapidly worldwide due to an aging population and expanding access to healthcare in developing countries. Baxter aims to meet this growing global demand for treatment by leveraging its expertise in areas like plasma fractionation, recombinant processing technologies, and global manufacturing capabilities. The company is pursuing growth opportunities in existing areas like hemophilia treatment as well as new areas like vaccines and anesthesia that build on its core strengths. Baxter expects strong financial performance in 2001 with low double-digit sales growth and mid-teens earnings growth.
- Danaher Corporation filed a quarterly report on Form 10-Q with the SEC for the quarter ended June 27, 2008.
- The filing includes Danaher's consolidated condensed financial statements and notes, and management's discussion and analysis of financial condition and results of operations.
- Highlights include total sales of $3.3 billion for the quarter and $6.3 billion for the six months ended June 27, 2008, with net earnings of $363 million and $640 million respectively.
Sempra Energy reported revenues of over $11 billion in 2007. Net income was $1.1 billion, down from $1.4 billion in 2006. Key assets included $11.3 billion in current assets and $30.1 billion in total assets as of the end of 2007. Sempra operates utilities in California serving over 6.5 million customers.
The document is Danaher Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended March 28, 2008. It includes Danaher's consolidated condensed financial statements and management's discussion and analysis. The financial statements show that for Q1 2008, Danaher's sales increased 20% to $3.028 billion compared to $2.521 billion in Q1 2007. Net earnings increased 9% to $276.5 million compared to $254.8 million. Earnings per share from continuing operations increased 7% to $0.87 basic and $0.83 diluted.
This document is Visteon Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ending March 31, 2004. It includes Visteon's consolidated financial statements including statements of income, balance sheets, and cash flows. It also includes notes to the financial statements providing additional details. The report is broken into sections including financial information, other information, signatures, and exhibits.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended June 30, 2006. It includes Visteon's consolidated financial statements, such as statements of operations and balance sheets, as well as notes to the financial statements. An independent accounting firm reviewed the financial statements and found them to be in accordance with accounting principles generally accepted in the US. The report provides Visteon's financial results for the second quarter and first half of 2006, including net sales of $3 billion and $6 billion respectively, and discusses legal proceedings, risks factors, and exhibits related to the filing.
This document is Danaher Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 26, 2008. It includes Danaher's consolidated condensed financial statements and notes. Some key details include:
- Net earnings for the quarter were $371.9 million compared to $483.7 million in the prior year.
- Total current assets increased to $4.1 billion from $4 billion at the end of 2007.
- Sales for the quarter increased to $3.2 billion from $2.7 billion in the prior year.
- Cash flows from operating activities for the nine months ended was $1.3 billion.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2006. It includes Visteon's unaudited consolidated financial statements for the first quarter of 2006, showing net sales of $2.961 billion, cost of sales of $2.745 billion, and a net loss of $88 million. It also includes management's discussion of the company's financial condition and operating results, and certifications that the report does not contain any false or misleading statements.
This document is International Paper Company's Form 10-Q filing for the quarterly period ended March 31, 2004. It includes International Paper's consolidated financial statements, including statements of earnings, balance sheets, cash flows, and shareholders' equity. It also includes notes to the financial statements and sections on management's discussion of financial condition, results of operations, quantitative and qualitative market risk disclosures, and controls and procedures. The financial statements show that for the quarter ended March 31, 2004, International Paper reported net earnings of $73 million on net sales of $6.4 billion.
- The document is Goodyear Tire & Rubber Company's Form 10-Q/A for the quarterly period ended March 31, 2004, which includes restated financial statements and notes for that period as well as the comparable period in 2003.
- Goodyear is restating its financial statements for 2003 and prior periods due to accounting errors. The restatement adjustments are described in Note 1A and Note 2.
- For the quarter ended March 31, 2004, Goodyear reported a net loss of $78.1 million compared to a net loss of $200.5 million in the comparable period of 2003.
This document is Toll Brothers' quarterly report filed with the SEC for the period ended July 31, 2004. It includes condensed consolidated financial statements such as the balance sheet, income statement, and cash flow statement. It also provides notes to the financial statements and disclosures on forward-looking statements, accounting policies, and subsequent events. The financial statements show that for the nine months ended July 31, 2004, Toll Brothers increased its revenues over the same period the prior year and reported net income of $228.5 million.
This document is Toll Brothers Inc.'s quarterly report filed with the SEC for the quarter ending April 30, 2005. It includes condensed consolidated financial statements such as the balance sheet, income statement, and cash flow statement. It also includes notes to the financial statements and sections for management's discussion of financial conditions, market risk disclosures, and controls and procedures. The financial statements show that for the six months ending April 30, 2005, Toll Brothers had net income of $280 million on revenues of $2.2 billion, with basic earnings per share of $3.66.
This document is PACCAR Inc's quarterly report (Form 10-Q) for the period ending June 30, 2004 filed with the SEC. It includes:
1) Financial statements such as the consolidated balance sheet, income statement, and cash flow statement for the quarter.
2) Notes to the financial statements providing additional information and disclosure.
3) Certification by management of the accuracy of the financial statements and internal controls.
The summary highlights that this is PACCAR's regulatory filing, includes their quarterly financial statements, and notes to those statements as required by the SEC. It covers the essential information in 3 sentences as requested.
This document is Toll Brothers, Inc.'s quarterly report filed with the SEC for the quarter ended January 31, 2004 on Form 10-Q. It includes Toll Brothers' condensed consolidated financial statements, management's discussion and analysis of financial condition and results of operations, and certifications regarding disclosure controls and procedures. The financial statements show that for the quarter ended January 31, 2004, Toll Brothers had revenues of $597.9 million, net income of $50.1 million, and earnings per share of $0.68 on a basic basis and $0.62 on a diluted basis. Inventory increased to $3.27 billion from $3.08 billion at the end of the prior fiscal year.
This document is International Paper Company's Form 10-Q quarterly report filed with the SEC for the quarter ended March 31, 2002. It includes International Paper's consolidated financial statements for the quarter, including statements of earnings, balance sheets, cash flows, and shareholders' equity. It also includes management's discussion and analysis of the financial results, quantitative and qualitative disclosures about market risk, legal proceedings information, and certifications.
This document is Toll Brothers' quarterly report filed with the SEC for the quarter ending January 31, 2005. It includes condensed consolidated financial statements and notes. The financial statements show that for the quarter, Toll Brothers had revenues of $999 million, net income of $110 million, and earnings per share of $1.33. Cash flows were negative for the quarter due to increased inventory purchases exceeding cash generated from home sales.
Clear Channel Communications reported financial results for the fourth quarter and full year 2004. For the quarter, revenue increased 1% to $2.31 billion and income was $214.3 million. For the full year, revenue grew 5% to $9.4 billion and income was $845.8 million. The company repurchased $2.1 billion of its stock and paid $265.2 million in dividends in 2004. Operationally, Clear Channel focused on improving its existing businesses and leading change in the industries in which it operates.
This document is an amendment to a previously filed Form 10-K for ConAgra Foods Inc. It provides restated financial statements for fiscal years 2004, 2003 and 2002, and the first two quarters of fiscal 2005 due to errors discovered in income tax accounting. The errors resulted in an aggregate net increase in income tax expense of approximately $105 million for the periods affected. As a result of the restatement, ending stockholders' equity was reduced by $45.6 million as of May 30, 2004. The filing amends and restates items 6, 7, 8, 9A and 15 to reflect the restatement and its effects.
This document is a Form 8-K filed by YRC Worldwide Inc. with the Securities and Exchange Commission on February 13, 2006. It summarizes that YRC is revising its previously reported diluted earnings per share for the three and twelve months ended December 31, 2005 due to an accounting error related to foreign currency entries at its Canadian subsidiary Reimer Express. The revision has no impact on operating income. YRC also reports lower than estimated capital expenditures for 2005.
This document is Toll Brothers' Form 10-Q quarterly report filed with the SEC for the quarter ended April 30, 2003. It includes condensed consolidated financial statements such as the balance sheet, income statement, and cash flow statement, as well as notes to the financial statements. The financial statements show that for the quarter ended April 30, 2003, Toll Brothers had revenues of $607.9 million, net income of $52.9 million, and basic earnings per share of $0.76. Cash and cash equivalents increased to $211.3 million from $102.3 million at the end of the previous fiscal year.
This document is Toll Brothers' Form 10-Q quarterly report filed with the SEC for the quarter ended July 31, 2005. The summary includes:
1) Toll Brothers reported revenues of $3.8 billion for the nine months ended July 31, 2005, with net income of $495.8 million.
2) As of July 31, 2005, Toll Brothers had $5.9 billion in total assets, $3.4 billion in total liabilities, and $2.5 billion in total stockholders' equity.
3) For the three months ended July 31, 2005, Toll Brothers reported revenues of $1.6 billion and net income of $215.5 million.
johnson controls FY2007 1st Quarter Form 10-Q finance8
This document is a Form 10-Q quarterly report filed by Johnson Controls with the SEC for the quarter ended December 31, 2006. It includes:
1) Financial statements such as the balance sheet, income statement, and cash flow statement for the quarter.
2) A discussion of the company's financial condition and results of operations for the quarter.
3) Information on legal proceedings, risks, shareholder votes, and certifications by management.
The document discusses Baxter International's 2000 Annual Report. It highlights that the number of people suffering from life-threatening conditions is growing rapidly worldwide due to an aging population and expanding access to healthcare in developing countries. Baxter aims to meet this growing global demand for treatment by leveraging its expertise in areas like plasma fractionation, recombinant processing technologies, and global manufacturing capabilities. The company is pursuing growth opportunities in existing areas like hemophilia treatment as well as new areas like vaccines and anesthesia that build on its core strengths. Baxter expects strong financial performance in 2001 with low double-digit sales growth and mid-teens earnings growth.
- Danaher Corporation filed a quarterly report on Form 10-Q with the SEC for the quarter ended June 27, 2008.
- The filing includes Danaher's consolidated condensed financial statements and notes, and management's discussion and analysis of financial condition and results of operations.
- Highlights include total sales of $3.3 billion for the quarter and $6.3 billion for the six months ended June 27, 2008, with net earnings of $363 million and $640 million respectively.
Sempra Energy reported revenues of over $11 billion in 2007. Net income was $1.1 billion, down from $1.4 billion in 2006. Key assets included $11.3 billion in current assets and $30.1 billion in total assets as of the end of 2007. Sempra operates utilities in California serving over 6.5 million customers.
The document is Danaher Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended March 28, 2008. It includes Danaher's consolidated condensed financial statements and management's discussion and analysis. The financial statements show that for Q1 2008, Danaher's sales increased 20% to $3.028 billion compared to $2.521 billion in Q1 2007. Net earnings increased 9% to $276.5 million compared to $254.8 million. Earnings per share from continuing operations increased 7% to $0.87 basic and $0.83 diluted.
This document is Visteon Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ending March 31, 2004. It includes Visteon's consolidated financial statements including statements of income, balance sheets, and cash flows. It also includes notes to the financial statements providing additional details. The report is broken into sections including financial information, other information, signatures, and exhibits.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended June 30, 2006. It includes Visteon's consolidated financial statements, such as statements of operations and balance sheets, as well as notes to the financial statements. An independent accounting firm reviewed the financial statements and found them to be in accordance with accounting principles generally accepted in the US. The report provides Visteon's financial results for the second quarter and first half of 2006, including net sales of $3 billion and $6 billion respectively, and discusses legal proceedings, risks factors, and exhibits related to the filing.
This document is Danaher Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 26, 2008. It includes Danaher's consolidated condensed financial statements and notes. Some key details include:
- Net earnings for the quarter were $371.9 million compared to $483.7 million in the prior year.
- Total current assets increased to $4.1 billion from $4 billion at the end of 2007.
- Sales for the quarter increased to $3.2 billion from $2.7 billion in the prior year.
- Cash flows from operating activities for the nine months ended was $1.3 billion.
This document is from a presentation by Michael D. Fraizer, Chairman and CEO of Genworth Financial, at the UBS Global Financial Services Conference on May 14, 2008. The presentation discusses Genworth's strategy of providing financial security products across different life stages. It acknowledges challenges in the US mortgage insurance market in 2008 due to the difficult environment, but expresses confidence in Genworth's positioning for improved future performance. The presentation outlines priorities for 2008, including navigating challenges in US mortgage insurance, expanding wealth management and retirement offerings, growing internationally, and transitioning life and long term care business lines.
Entergy Corporation's 2007 annual report summarizes the company's financial results and strategic initiatives for the year. The report discusses Entergy's plans to spin off its non-utility nuclear business and form a nuclear services joint venture in order to unlock greater value for shareholders. It also highlights Entergy's focus on operational excellence, portfolio transformation strategies in its utility business, and regulatory recovery from hurricanes Katrina and Rita in 2005.
Baxter International's 1996 annual report outlines its vision to be recognized as a leader in innovative healthcare technologies that improve lives. It has leading market positions in four businesses: biotechnology, cardiovascular medicine, renal therapy, and intravenous systems/medical products. All of Baxter's businesses hold leading positions in high-growth global markets and are pursuing the vision through talented and dedicated people.
This document is an SEC Form 10-K annual report filed by Entergy Corporation and several of its subsidiaries. It provides information on the companies' businesses and operations, including financial information and a management discussion and analysis. The filing includes information on the companies' securities, stock prices, directors and executives. It incorporates portions of Entergy Corporation's proxy statement for its annual shareholder meeting to be held in May 2007.
Net sales for the fourth quarter of 2006 decreased 9% compared to the fourth quarter of 2005, primarily due to declines in volumes and unfavorable price/mix. Digital product sales decreased 5% and traditional product sales decreased 15%. Gross profit increased 4% due to reductions in manufacturing costs, favorable price/mix and foreign exchange, partially offset by volume declines. Earnings from continuing operations were $17 million compared to a loss of $137 million in the prior year, driven by gross profit increases and lower SG&A and R&D expenses.
The document is Sempra Energy's 1999 annual report. It summarizes the company's strong financial performance in 1999, exceeding earnings growth targets. However, total shareholder return did not increase. As a result, Sempra Energy is undertaking a strategic realignment to become a leading global energy services company focused on meeting changing customer needs. Key steps include investments in growing domestic and international businesses and a reduced dividend to increase financial flexibility for growth.
This document is a proxy statement and notice of annual meeting from Baxter International Inc. to its stockholders. It informs stockholders that the 2003 Annual Meeting of Stockholders will be held on May 6, 2003 at the Drury Lane Theatre in Oakbrook Terrace, Illinois. The purpose of the meeting is to elect three directors, ratify the appointment of the independent accountants, approve the 2003 Incentive Compensation Program, and consider a stockholder proposal regarding cumulative voting. Stockholders are encouraged to vote by proxy in advance of the meeting.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ended December 31, 2000 filed with the Securities and Exchange Commission. It summarizes EchoStar's business operations, including its DISH Network direct broadcast satellite television service, technologies division, and satellite services business unit. It provides an overview of the components and technology behind EchoStar's DISH Network service, including its programming offerings, equipment requirements, and conditional access system for encryption/security. Financial data and other required disclosures are also included as required by the SEC.
- DISH Network added 1.48 million subscribers in 2004, surpassing 10 million subscribers in June 2004 and finishing the year with 10.9 million subscribers.
- DISH Network generated $7.15 billion in revenue in 2004, with earnings of $215 million and $21 million in free cash flow.
- DISH Network continues to focus on growing its subscriber base and developing additional services, and expects to launch its 10th satellite in early 2006 to increase channel offerings and capacity.
This document is an amendment to a previously filed Form 10-K for ConAgra Foods Inc. It provides restated financial statements for fiscal years 2004, 2003 and 2002, and the first two quarters of fiscal 2005 due to errors discovered in income tax accounting. The errors resulted in an aggregate net increase in income tax expense of approximately $105 million for the periods affected. As a result of the restatement, ending stockholders' equity was reduced by $45.6 million as of May 30, 2004. The filing amends and restates items 6, 7, 8, 9A and 15 to reflect the restatement and its effects.
This document is an amendment to a quarterly report filed with the SEC by Calpine Corporation. It provides revised or additional disclosure for the company's financial statements, management discussion/analysis, and controls/procedures for the quarter ended March 31, 2004. Specifically, it includes:
1) Calpine's consolidated balance sheets, statements of operations, and cash flows for Q1 2004 and 2003.
2) Notes to the financial statements providing additional details.
3) An explanatory note stating this amendment was filed in connection with an SEC review and resulted in expanded disclosure but no changes to financial statements.
4) Sections on management discussion/analysis of financial condition, market risk, and controls/pro
- Tenet Healthcare Corporation filed an amended quarterly report for the quarter ended March 31, 2005 to restate certain financial information.
- Net loss for the quarter was restated to $4 million from the previously reported $119 million, due to restatements of the balance sheet, statements of operations, and cash flows.
- Operating income was restated to $98 million, interest expense was restated to $101 million, and discontinued operations loss was restated to $24 million.
This document is an amendment to Micron Technology, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended March 4, 2004. The purpose of the amendment is to refile exhibits 31.1 and 31.2 to comply with certification requirements that became effective in August 2003. No other changes are being made except the amended certifications. The certifications are being replaced to reflect the required language under the new rules.
This document is an amendment to Micron Technology, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended December 4, 2003. It is being filed to replace the certifications of the Chief Executive Officer and Chief Financial Officer to reflect new language requirements. No other changes are being made except revisions to the certifications. The amendment provides concise summaries of key exhibits and reports filed during the quarter.
- Tenet Healthcare Corporation filed an amended quarterly report on Form 10-Q/A with the SEC to restate its financial statements for the quarter ended June 30, 2005.
- The restatements were based on an independent investigation that found issues with the company's accounting for contractual allowances.
- In addition to restating financial results, the report provides explanatory notes about the restatements and updates the status of the SEC's investigation into the company's contractual allowances accounting.
This document is an SEC Form 10-K/A filing by Calpine Corporation for the fiscal year ending December 31, 2003. It provides amendments to Calpine's previous annual report filing. The amendments include revised and expanded disclosures related to Calpine's oil and gas operations in items 1, 2, 8, and 15 of the filing. The amendments were filed in connection with the SEC's review of a Calpine registration statement.
This document is an SEC Form 10-K/A annual report filed by Calpine Corporation. It provides amendments to Calpine's original Form 10-K annual report for the fiscal year ending December 31, 2003. The amendments include revised and expanded disclosures related to Calpine's oil and gas operations in Items 1, 2, 8, and 15 of the filing. The amendments were filed in connection with the SEC's review of a Calpine registration statement and incorporate disclosures requested by the SEC regarding Calpine's oil and gas business.
- Time Warner Inc. filed a quarterly report (Form 10-Q) with the SEC for the period ending March 31, 2008.
- The report provides financial and operating results for each of Time Warner's business segments, including AOL, Cable, Filmed Entertainment, Networks, and Publishing for the quarter.
- For the quarter, Time Warner generated revenues of $11.417 billion, Operating Income of $1.947 billion, Net Income of $771 million, and Cash Provided by Operations of $2.796 billion.
This document is Toll Brothers' quarterly report filed with the SEC for the period ended July 31, 2004. It includes condensed consolidated financial statements such as the balance sheet, income statement, and cash flow statement. It also provides notes to the financial statements and disclosures on forward-looking statements, accounting policies, and subsequent events. The financial statements show that for the nine months ended July 31, 2004, Toll Brothers increased its revenues over the same period the prior year and reported net income of $228.5 million.
This document is a quarterly report filed by UniFirst Corporation with the SEC for the quarter ended May 30, 2009. It includes UniFirst's consolidated financial statements and notes. The financial statements show that for the quarter, UniFirst reported revenues of $252 million, income from operations of $36.7 million, net income of $21.7 million, and basic earnings per share of $1.18 on common stock. The balance sheet details the company's assets, liabilities, and shareholders' equity as of May 30, 2009.
- Clear Channel Communications reported a 6.6% increase in second quarter revenues to $2.32 billion compared to the same period last year. Net earnings were $251.3 million, up slightly from $238 million last year.
- On a pro forma basis, which adjusts for acquisitions and exchange rates, second quarter revenues were flat at $2.24 billion while EBITDA declined 1.5% to $622.9 million.
- Radio revenues declined 2.1% on a reported basis and 2.6% on a pro forma basis due to weakness in local advertising, small markets, syndication and non-traditional revenues. Outdoor revenues rose 20.1% due to acqu
This document is Toll Brothers Inc.'s quarterly report filed with the SEC for the quarter ended April 30, 2004. It includes condensed consolidated balance sheets comparing assets and liabilities as of April 30, 2004 and October 31, 2003, as well as condensed consolidated statements of income and cash flows for periods in 2004 and 2003. Key details include increased inventory and property, higher receivables and deposits, and expanded use of various forms of debt including loans payable, senior notes, and mortgage company warehouse loans.
This document is Toll Brothers, Inc.'s quarterly report filed with the SEC for the quarter ended April 30, 2004 on Form 10-Q. It includes Toll Brothers' condensed consolidated financial statements, including the balance sheet, income statement, and cash flow statement for the periods presented. It also includes notes to the financial statements and sections for management's discussion of financial condition, market risk disclosures, controls and procedures, and legal proceedings.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2003. It includes Visteon's consolidated statement of income and balance sheet for the first quarter of 2003 and the prior year quarter. For the first quarter of 2003, Visteon reported a net loss of $15 million compared to a net loss of $338 million in the prior year quarter, which included a $265 million charge from a change in accounting. Total sales for the first quarter were $4.7 billion. As of March 31, 2003, Visteon had $1.4 billion in cash and cash equivalents.
This document is Toll Brothers' quarterly report filed with the SEC for the period ending January 31, 2005. It includes condensed consolidated financial statements and notes. The financial statements show that for the quarter, Toll Brothers had revenues of $999 million, net income of $110 million, and earnings per share of $1.33. Cash and cash equivalents decreased by $125 million during the quarter to $341 million.
First Cash Financial Services reported first quarter 2009 earnings per share of $0.32 from continuing operations, exceeding analyst estimates. Total earnings per share were $0.38. The company opened 18 new stores, reaffirmed full-year 2009 EPS guidance of $1.36-$1.38, and expects to open 55-60 new stores in Mexico for the year.
The document is Toll Brothers Inc.'s quarterly report filed with the SEC for the quarter ended April 30, 2003. It summarizes Toll Brothers' financial position, including an increase in inventory and cash and cash equivalents compared to the prior fiscal year end. It also reports Toll Brothers' results of operations for the quarter, including housing and land sales revenues and net income. Finally, it provides a condensed consolidated statement of cash flows for the quarter showing cash used in operating activities, financing activities including new debt issuances, and an overall increase in cash and cash equivalents for the period.
This document is an amendment to a quarterly report filed with the SEC that restates financial statements for the first quarters of 2003 and 2002. It includes adjustments to correct errors in accounting periods for certain expenses, workers' compensation accruals, rental expenses, consulting costs, and a deferred compensation plan. The restatements resulted in increases and decreases to previously reported net income and diluted earnings per share.
This document is an SEC Form 10-Q/A quarterly report filed by Tenet Healthcare Corporation that provides restated financial results for the third quarter of 2005. It includes a condensed consolidated balance sheet, statements of operations and comprehensive income, and cash flows. Key details include:
1) The financial statements are being restated due to findings from an independent investigation into the company's accounting for contractual allowances.
2) In the condensed consolidated balance sheet, total assets decreased from $10.1 billion to $10 billion after restatement. Total liabilities increased from $8.4 billion to $8.6 billion.
3) In the condensed consolidated statement of operations, the net loss for the
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 1999. It provides information on EchoStar's business operations, legal proceedings, risks to its business, financial statements and other required disclosures. EchoStar operates a direct broadcast satellite subscription television service in the United States called DISH Network, which had approximately 3.4 million subscribers as of December 31, 1999. It also provides digital set-top boxes and other equipment to international direct-to-home service providers.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 2001 filed with the SEC. It provides an overview of EchoStar's businesses, including its DISH Network direct broadcast satellite television service and EchoStar Technologies equipment sales. It summarizes EchoStar's proposed merger with Hughes Electronics Corporation, which is subject to various regulatory approvals and conditions, including IRS and shareholder approval. If completed, the merger would create a new public company providing satellite TV services and technologies globally.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 2002 filed with the SEC. It provides an overview of EchoStar's business including its DISH Network direct broadcast satellite television service and EchoStar Technologies equipment manufacturing business. It discusses EchoStar's programming packages, sales and marketing strategies, satellite fleet, technology, competition, regulation, legal proceedings, and financial results.
EchoStar Communications Corporation experienced significant growth in 2003, crossing the 9 million subscriber milestone for its DISH Network satellite television service. The company launched its ninth satellite and released several new receiver products, including those supporting high-definition television and digital video recording. Financially, EchoStar achieved $5.7 billion in revenue and $225 million in earnings, while reducing debt through bond issuances and retirements. Going forward, the company plans to continue expanding its offerings in areas like international programming and high-definition television.
- DISH Network celebrated its 10th anniversary in 2005 and reported over $8.4 billion in revenue for the year, serving over 12 million customers.
- The company increased its net subscriber base by over 1.1 million customers in 2005 and remains the clear leader in international programming.
- Looking forward, the company plans to leverage its position as an HD leader by offering local HD channels in up to 30 markets by the end of the year using its new EchoStar X satellite.
dish network 2007 Notice and Proxy Statementfinance24
- The document is a letter from the Chairman and CEO of EchoStar Communications Corporation inviting shareholders to attend EchoStar's 2007 Annual Meeting of Shareholders on May 8, 2007.
- It provides details on the location, time, and agenda items to be voted on at the meeting, including the election of 10 directors and the ratification of the appointment of KPMG LLP as the independent auditor.
- Shareholders are encouraged to vote by proxy whether attending the meeting or not to ensure their votes are counted, and they are thanked for their support and interest in EchoStar.
Danaher Corporation reported quarterly and annual sales and operating margin data for its Tools and Controls segments for an unaudited period. The Tools segment saw annual sales of $1.16 billion while the Controls segment generated $2.62 billion in annual sales. On an annual basis before restructuring, operating margins were 13.49% for Tools and 16.54% for Controls. After restructuring, the annual operating margin fell to 11.31% for Tools and 14.85% for Controls.
Danaher Corporation reported its fourth quarter and full year 2001 results. For the fourth quarter, net earnings excluding restructuring charges were $76.6 million compared to $87.8 million in 2000. Full year 2001 net earnings excluding restructuring charges were $341.2 million, a 5% increase over 2000. However, Danaher recorded a $69.7 million restructuring charge in the fourth quarter related to manufacturing facility consolidations. For the full year, net earnings including restructuring charges were $297.7 million. Despite difficult economic conditions, Danaher was able to grow earnings in 2001 through aggressive cost reductions and restructuring actions.
Danaher Corporation announced its third quarter 2001 results, reporting a 5% increase in net income to $87.7 million compared to $83.6 million in third quarter 2000. Third quarter sales were down 8.6% to $901.6 million due to weakness in the industrial economy. For the first nine months of 2001, net earnings increased 12% to $264.6 million on 4% higher sales of $2.86 billion compared to the same period in 2000. The CEO stated that aggressive cost control allowed for earnings growth despite softness in the economy and that Danaher will maintain a strict cost focus while economic conditions remain uncertain.
Danaher Corporation announced its second quarter 2001 results, with record net earnings of $94.2 million, up 16% from the previous year. Revenue was also up 7% to $956.6 million. For the six month period, net earnings reached a record $176.8 million, up 16% and revenue was up 11.5% to $1.962 billion. While sales growth was strong, a slowing domestic economy negatively impacted some product lines, leading to a 4.5% decline in core sales volume. However, aggressive cost cutting measures helped boost earnings per share by 12.5% for the quarter.
Danaher Corporation announced record results for the first quarter of 2001 with net earnings of $82.6 million, a 15% increase over the same period in 2000. Diluted earnings per share were $0.56, up 14% from 2000. Sales increased 16% to $1,005.3 million due to acquisitions. While core volume declined in the tools and components segment due to a weak domestic economy, cost containment measures helped drive record operating profit. The company expects continued outperformance in 2001 despite economic uncertainty.
- Danaher Corporation reported record results for the fourth quarter and full year 2002, with net earnings of $161.7 million and $290.4 million respectively.
- Fourth quarter sales increased 39% to $1.275 billion compared to $918.9 million in 2001. Full year sales grew 21% to $4.577 billion.
- The strong results were driven by acquisitions and 3.5% core volume growth, although the tools and components segment declined slightly.
Danaher Corporation announced its third quarter 2002 results, reporting a 32% increase in net earnings to $116.0 million compared to third quarter 2001. Diluted earnings per share increased 25% year-over-year to $0.74. Total sales for the quarter grew 28% to $1,151.7 million, driven primarily by acquisitions completed in the first quarter of 2002. For the first nine months of 2002, net earnings were $128.7 million which included a $173.8 million one-time non-cash charge related to goodwill impairment. Excluding this charge, nine month net earnings were up 14% to $302.4 million compared to the same period in 2001.
Danaher Corporation announced its second quarter 2002 results, with net earnings of $103.7 million, a 10% increase over the second quarter of 2001. Earnings per share increased 5% to $0.66. Sales for the quarter increased 20% to $1.146 billion due primarily to recent acquisitions. For the first six months of 2002, net earnings were $12.7 million after a one-time $173.8 million goodwill impairment charge, but were up 5% excluding this charge at $186.4 million, with sales up 10% to $2.15 billion. The CEO stated they were pleased with the results and optimistic about continued improvement for the rest of the year.
Danaher Corporation announced its first quarter 2022 results. Net earnings were $82.7 million, comparable to the previous year's results. However, after adopting a new accounting standard that eliminated goodwill amortization, earnings per share fell 14% compared to the previous year. The company also recorded a $173.8 million charge related to goodwill impairment in some business units. Total sales were relatively flat at $1,004.2 million. The CEO commented that while core volumes declined 15% due to economic challenges, the company has seen signs of stability in revenues and gives a more positive outlook for the rest of the year.
Danaher Corporation provided a document summarizing its selling, general and administrative costs, operating profit, and free cash flow for the quarter and year ended December 31, 2003. Some key highlights include:
- Total company revenue for the quarter increased 16.7% to $1.49 billion compared to the same quarter last year.
- Operating profit before special credits for the total company was $239.6 million for the quarter, up 20.1% from the prior year.
- Free cash flow for the year was $781.2 million, up 21.1% from 2002.
Danaher Corporation reported record results for the fourth quarter and full year 2003. Net earnings for Q4 2003 were $169.9 million, or $1.06 per share, compared to $161.7 million, or $1.03 per share for Q4 2002. For the full year, net earnings were $536.8 million or $3.37 per share compared to $290.4 million or $1.88 per share for 2002. Sales increased 17% in Q4 2003 to $1.49 billion and grew 16% for the full year to $5.29 billion. The company experienced strong growth in both its process/environmental controls and tools/components segments.
This document from Danaher Corporation provides supplemental financial information including free cash flow and debt ratios for quarters ending in March, June, and September 2003 as well as year-to-date figures. Free cash flow is defined as operating cash flow minus capital expenditures and is a measure of available cash. Debt ratios including debt-to-total capital and net debt-to-total capital are also provided to show Danaher's leverage over time. Management believes these metrics provide useful information to investors and help determine borrowing capacity.
Danaher Corporation announced record third quarter results for 2003, with net earnings of $138.6 million, a 19% increase over the previous year. Diluted earnings per share were $0.87, an increase of 18% from 2002. Sales increased 14% to $1.309 billion. For the first nine months of 2003, net earnings were $366.9 million, a 21% increase over the previous year. The company's CEO stated that they achieved strong earnings growth despite a challenging economy, and that organic growth remains a priority along with cost reductions to fund growth opportunities.
This document from Danaher Corporation provides supplemental financial information including free cash flows, debt to total capital ratios, and net debt to total capital ratios for quarters ending in March and June of 2002 and 2003. Free cash flow increased from the prior year periods, while debt to total capital and net debt to total capital ratios decreased from the end of 2002 to the end of June 2003 due to an increase in cash and equity and a decrease in total debt. Management uses these metrics to evaluate the company's ability to generate cash, leverage over time, and access additional borrowing.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
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1. UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(Amendment No. 1)
(Mark One)
≤ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2004, or
n TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission Ñle number 1-15827
VISTEON CORPORATION
(Exact name of Registrant as speciÑed in its charter)
Delaware 38-3519512
(State of incorporation) (I.R.S. employer
IdentiÑcation number)
One Village Center Drive, Van Buren Township, Michigan 48111
(Address of principal executive oÇces) (Zip code)
Registrant's telephone number, including area code: (800)-VISTEON
Indicate by check mark whether the Registrant: (1) has Ñled all reports required to be Ñled
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to Ñle such reports), and (2) has
been subject to such Ñling requirements for the past 90 days.
Yes „ No
Indicate by check mark whether the Registrant is an accelerated Ñler (as deÑned in
Exchange Act Rule 12b-2).
Yes „ No
As of March 1, 2005, the Registrant had outstanding 128,678,345 shares of common stock,
par value $1.00 per share.
Exhibit index located on page number 40.
2. VISTEON CORPORATION AND SUBSIDIARIES
EXPLANATORY NOTE
This Amendment No. 1 on Form 10-Q/A(quot;quot;Form 10-Q/A'') to our Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2004, initially Ñled with the Securities and
Exchange Commission (the quot;quot;SEC'') on May 3, 2004 (the quot;quot;Original Filing''), is being Ñled
to reÖect restatements of our consolidated balance sheets at March 31, 2004 and
December 31, 2003; and our consolidated statement of operations for each of the periods
ended March 31, 2004 and March 31, 2003, and the notes related thereto. The restatements
primarily pertain to the following matters identiÑed during the course of preparing Visteon's 2004
Ñnancial statements:
‚ EÅective in January 2002, and again in January 2004, Visteon amended its retiree health
care beneÑts plans for certain of its U.S. employees. These amendments changed the
eligibility requirements for participants in the plans, and, as a result, Visteon changed the
expense attribution periods. We have determined that these changes in eligibility
requirements were not properly communicated to aÅected employees, and, therefore, the
revision to the expense attribution periods, which resulted in expense reductions,
should not have been made. The impact of the correction of these errors decreased net
income by approximately $5 million ($0.04 per share) and increased net loss by
approximately $4 million ($0.03 per share) for the quarters ended March 31, 2004 and
March 31, 2003, respectively.
‚ Visteon is making corrections for certain tooling costs originally recorded as receivables.
Costs incurred for Visteon-owned tooling used in production have been adjusted to reÖect
such costs as long-term assets and to provide related amortization expense. Non-
reimbursable costs incurred to develop customer-owned tooling have been expensed in
the periods such costs were incurred. There was no impact of the correction of these
errors on net income for the quarters ended March 31, 2004 and March 31, 2003.
‚ Visteon is making corrections for certain volume related rebates, received from numerous
capital equipment suppliers for purchases, which were originally recognized as a reduction
to expense. Costs incurred for capital equipment have been adjusted to reÖect such
discounts as a reduction to long-term assets and to adjust related depreciation and
amortization expense. The impact of the correction of these errors increased net loss by
approximately $2 million ($0.01 per share) for the quarter ended March 31, 2004.
‚ During the review of our annual United Kingdom pension valuations, we identiÑed
unrecorded pension expenses incurred as a result of special termination beneÑts provided
under Visteon's European Plan for Growth program. The impact of the correction of these
errors decreased net income by approximately $3 million ($0.02 per share) for the quarter
ended March 31, 2004.
‚ Visteon also identiÑed unrecorded postretirement health care expenses at one of Visteon's
foreign locations. There was no impact of the correction of these errors on net income for
the quarters ended March 31, 2004 and March 31, 2003.
1
3. ‚ Visteon is correcting the amount and timing of the recognition of certain tax adjustments
made during the periods. As Visteon expects to repatriate earnings of foreign subsidiaries,
adjustments were made to provide for the tax eÅects of foreign currency movements
against the U.S. dollar. These adjustments also impacted the timing of the recognition of
deferred tax asset valuation allowances in the fourth quarter of 2003 and the third quarter
of 2004. Further, Visteon recognized an additional valuation allowance for certain deferred
tax assets that had previously been misclassiÑed and not considered in Visteon's 2003
deferred tax assessment. There was no impact of the correction of these errors on net
income for the quarters ended March 31, 2004 and March 31, 2003.
For a more detailed description of these restatements, see Note 2, quot;quot;Restatement of Financial
Statements'' to the accompanying consolidated Ñnancial statements contained in this
Form 10-Q/A. The decision to restate Visteon's consolidated Ñnancial statements was previously
announced in a press release that was Ñled with the SEC as part of a Current Report on
Form 8-K of Visteon dated January 31, 2005.
Although this Form 10-Q/A sets forth the Original Filing in its entirety, this Form 10-Q/A only
amends and restates Items 1, 2 and 4 of Part I, Item 6 of Part II and Exhibit 12.1 of Item 6 of
Part II of the Original Filing, in each case, solely as a result of, and to reÖect, the restatement,
and no other information in the Original Filing is amended hereby. The foregoing items have not
been updated to reÖect other events occurring after the Original Filing or to modify or update
those disclosures aÅected by subsequent events. In addition, pursuant to the rules of the SEC,
Item 6 of Part II of the Original Filing has been amended to contain the consent of our
independent registered public accounting Ñrm and currently-dated certiÑcations from our Chief
Executive OÇcer and Chief Financial OÇcer, as required by Sections 302 and 906 of the
Sarbanes-Oxley Act of 2002. The consent of the independent registered public accounting Ñrm
and the certiÑcations of our Chief Executive OÇcer and Chief Financial OÇcer are attached to
this Form 10-Q/A as Exhibits 15.1, 31.1, 31.2, 32.1 and 32.2, respectively.
Except for the foregoing amended information, this Form 10-Q/A continues to describe
conditions as of the date of the Original Filing, and we have not updated the disclosures
contained herein to reÖect events that occurred at a later date. Other events occurring after the
Ñling of the Original Filing or other disclosures necessary to reÖect subsequent events have been
or will be addressed in either our amended Quarterly Reports on Form 10-Q/A for the quarterly
periods ended June 30, 2004 and/or September 30, 2004, which are being Ñled concurrently with
the Ñling of this Form 10-Q/A, or by our Annual Report on Form 10-K for the year ended
December 31, 2004, when Ñled, or other reports Ñled with the SEC subsequent to the date of this
Ñling.
2
4. PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
For the Periods Ended March 31, 2004 and 2003
(in millions, except per share amounts)
First Quarter
2004 2003
(Restated) (Restated)
(unaudited)
Sales
Ford and aÇliates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,637 $3,721
Other customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,335 983
Total salesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,972 4,704
Costs and expenses (Notes 3 and 5)
Costs of sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,656 4,481
Selling, administrative and other expenses ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 265 244
Total costs and expensesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,921 4,725
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 51 (21)
Interest income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4 4
Interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23 23
Net interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (19) (19)
Equity in net income of aÇliated companies (Note 3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11 15
Income (loss) before income taxesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 43 (25)
Provision (beneÑt) for income taxes (Note 3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 (14)
Income (loss) before minority interests ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29 (11)
Minority interests in net income of subsidiaries ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9 8
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20 $ (19)
Earnings (loss) per share (Note 9)
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.16 $(0.15)
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.16 (0.15)
Cash dividends per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.06 $ 0.06
The accompanying notes are part of the Ñnancial statements.
3
5. VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
March 31, December 31,
2004 2003
(Restated) (Restated)
(unaudited)
Assets
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1,187 $ 953
Marketable securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 3
Total cash and marketable securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,188 956
Accounts receivable Ì Ford and aÇliates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,476 1,175
Accounts receivable Ì other customers (Note 7) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,184 1,185
Total receivables, net (Note 3)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,660 2,360
Inventories (Note 12) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 828 761
Deferred income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 163 163
Prepaid expenses and other current assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 186 143
Total current assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,025 4,383
Equity in net assets of aÇliated companiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 225 215
Net property ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,379 5,365
Deferred income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 716 700
Other assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 277 270
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $11,622 $10,933
Liabilities and Stockholders' Equity
Trade payables ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2,457 $ 2,270
Accrued liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,003 930
Income taxes payable ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 39 31
Debt payable within one year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 276 351
Total current liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,775 3,582
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,945 1,467
Postretirement beneÑts other than pensions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 581 515
Postretirement beneÑts payable to FordÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,079 2,090
Other liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,491 1,508
Total liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,871 9,162
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00, 50 million shares authorized,
none outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì
Common Stock, par value $1.00, 500 million shares authorized,
131 million shares issued, 129 million and 131 million shares
outstanding, respectivelyÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 131 131
Capital in excess of par value of stockÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,297 3,288
Accumulated other comprehensive (loss) (Note 13) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (80) (54)
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (34) (19)
Accumulated deÑcit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,563) (1,575)
Total stockholders' equityÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,751 1,771
Total liabilities and stockholders' equity ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $11,622 $10,933
The accompanying notes are part of the Ñnancial statements.
4
6. VISTEON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Periods Ended March 31, 2004 and 2003
(in millions)
First Quarter
2004 2003
(Restated) (Restated)
(unaudited)
Cash and cash equivalents at January 1 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 953 $1,204
Cash Öows provided by (used in) operating activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 103 (135)
Cash Öows from investing activities
Capital expendituresÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (196) (181)
Purchases of securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì (48)
Sales and maturities of securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 70
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 6
Net cash used in investing activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (193) (153)
Cash Öows from Ñnancing activities
Commercial paper repayments, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (54) (17)
Other short-term debt, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (19) Ì
Proceeds from issuance of other debt, net of issuance costs ÏÏÏÏÏÏÏÏÏÏ 474 36
Principal payments on other debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (12) (27)
Purchase of treasury stockÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (11) (5)
Cash dividends ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (8) (8)
Other, including book overdraftsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (42) (1)
Net cash provided by (used in) Ñnancing activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 328 (22)
EÅect of exchange rate changes on cash ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4) 2
Net increase (decrease) in cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 234 (308)
Cash and cash equivalents at March 31 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,187 $ 896
The accompanying notes are part of the Ñnancial statements.
5
7. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
(unaudited)
NOTE 1. Financial Statements
The Ñnancial data presented herein are unaudited, but in the opinion of management reÖect
those adjustments, including normal recurring adjustments, necessary for a fair statement of such
information. Results for interim periods should not be considered indicative of results for a full
year. Reference should be made to the consolidated Ñnancial statements and accompanying
notes included in the company's Annual Report on Form 10-K for the Ñscal year ended
December 31, 2003, as Ñled with the Securities and Exchange Commission on February 13, 2004
and as amended on March 16, 2005.
Visteon Corporation (quot;quot;Visteon'') is a leading, global supplier of automotive systems,
modules and components. Visteon sells products primarily to global vehicle manufacturers, and
also sells to the worldwide aftermarket for replacement and vehicle appearance enhancement
parts. Visteon became an independent company when Ford Motor Company (quot;quot;Ford'')
established Visteon as a wholly-owned subsidiary in January 2000 and subsequently transferred
to Visteon the assets and liabilities comprising Ford's automotive components and systems
business. Ford completed its spin-oÅ of Visteon on June 28, 2000 (the quot;quot;spin-oÅ''). Prior to
incorporation, Visteon operated as Ford's automotive components and systems business.
6
8. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 2. Restatement of Financial Statements
Visteon has restated its previously issued consolidated Ñnancial statements for 2001 through
2003 and for the Ñrst three months of 2004, primarily for accounting corrections related to
postretirement health care and pension costs, tooling costs, capital equipment costs, inventory
costing and income taxes.
The following table summarizes the impact of these adjustments to Visteon's previously
reported net income (loss). These adjustments impacted previously reported costs of sales,
selling, administrative and other expenses and income tax expense on the consolidated
statement of income.
First Quarter
2004 2003
(in millions)
Net income (loss), as originally reportedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 30 $(15)
Accounting corrections for postretirement health care costs and pension costs
(pre-tax)(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (11) (6)
Accounting corrections for capital equipment costs (pre-tax)(2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2) Ì
Tax impact of above(3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 2
Net income (loss), as restated ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20 $(19)
(1) Ì EÅective in January 2002, Visteon amended its retiree health care beneÑts plan for certain
of its U.S. employees. EÅective in January 2004, a Visteon wholly owned subsidiary amended its
retiree health care beneÑts plan for its U.S. employees. These amendments changed the eligibility
requirements for participants in the plans. As a result of these amendments, Visteon changed the
expense attribution periods, which eliminated cost accruals for younger employees and increased
accrual rates for older participating employees. Prior to these amendments, Visteon accrued for
the cost of the beneÑt from a participating employee's date of hire, regardless of age. Visteon
determined that these beneÑt changes were not properly communicated to eÅected employees
pursuant to the requirements of Statement of Financial Accounting Standards No. 106 and that
such expense reductions should not have been recorded. Further, analysis of the annual United
Kingdom pension valuation identiÑed pension expenses related to special termination beneÑts
provided under Visteon's European Plan for Growth which were not fully recognized in the period
in which those beneÑts were accepted by employees ($3 million in the Ñrst quarter of 2004). The
impact of the correction of these errors decreased net income by approximately $8 million
($0.06 per share) and increased net loss by approximately $4 million ($0.03 per share), for the
Ñrst quarter ended March 31, 2004 and March 31, 2003, respectively.
(2) Ì Represents an adjustment for volume related rebates, received from numerous capital
equipment suppliers for purchases, which were originally recognized as a reduction to expense.
Costs incurred for capital equipment have been adjusted to reÖect such discounts as a reduction
to long-term assets and to adjust related depreciation and amortization expense. The impact of
the correction of these errors decreased net income approximately $2 million ($0.01 per share)
for the Ñrst quarter ended March 31, 2004.
(3) Ì Represents the deferred tax beneÑt of the pre-tax expense adjustments.
7
9. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 2. Restatement of Financial Statements Ì (Continued)
The following is a summary of the impact of the restatement on the previously issued
consolidated statement of income, consolidated balance sheets and condensed consolidated
statement of cash Öows included in this Ñling.
CONSOLIDATED STATEMENT OF INCOME
First Quarter
2004 2003
As As
Originally As Originally As
Reported Restated Reported Restated
(in millions)
Sales
Ford and aÇliates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,637 $3,637 $3,721 $3,721
Other customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,335 1,335 983 983
Total salesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,972 4,972 4,704 4,704
Costs and expenses
Costs of sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,645 4,656 4,477 4,481
Selling, administrative and other expenses ÏÏ 263 265 242 244
Total costs and expenses ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,908 4,921 4,719 4,725
Operating income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 64 51 (15) (21)
Interest income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4 4 4 4
Interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23 23 23 23
Net interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (19) (19) (19) (19)
Equity in net income of aÇliated companies ÏÏÏ 11 11 15 15
Income (loss) before income taxes and
minority interests ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56 43 (19) (25)
Provision (beneÑt) for income taxes ÏÏÏÏÏÏÏÏÏÏ 17 14 (12) (14)
Income (loss) before minority interests ÏÏÏÏÏÏ 39 29 (7) (11)
Minority interest in net income of subsidiaries ÏÏ 9 9 8 8
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 30 $ 20 $ (15) $ (19)
Income (loss) per share
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.24 $ 0.16 $(0.12) $(0.15)
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.23 0.16 (0.12) (0.15)
8
10. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 2. Restatement of Financial Statements Ì (Continued)
CONSOLIDATED BALANCE SHEET
March 31, 2004 December 31, 2003
As As
Originally As Originally As
Reported Restated Reported Restated
(in millions)
Assets
Cash and cash equivalentsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1,187 $ 1,187 $ 953 $ 953
Marketable securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 1 3 3
Total cash and marketable securities ÏÏÏÏÏÏ 1,188 1,188 956 956
Accounts receivable Ì Ford and aÇliates ÏÏÏÏ 1,499 1,476 1,198 1,175
Accounts receivable Ì other customersÏÏÏÏÏÏ 1,163 1,184 1,164 1,185
Total receivables ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,662 2,660 2,362 2,360
Inventories ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 828 828 761 761
Deferred income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 163 163 163 163
Prepaid expenses and other current assets ÏÏ 211 186 168 143
Total current assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,052 5,025 4,410 4,383
Equity in net assets of aÇliated companiesÏÏÏ 225 225 215 215
Net property ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,386 5,379 5,369 5,365
Deferred income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 713 716 700 700
Other assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 277 277 270 270
Total AssetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $11,653 $11,622 $10,964 $10,933
Liabilities and Stockholders' Equity
Trade payables ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2,457 $ 2,457 $ 2,270 $ 2,270
Accrued liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 994 1,003 924 930
Income taxes payable ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 39 27 31
Debt payable within one year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 276 276 351 351
Total current liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,762 3,775 3,572 3,582
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,945 1,945 1,467 1,467
Postretirement beneÑts other than pensions ÏÏ 527 581 469 515
Postretirement beneÑts payable to FordÏÏÏÏÏÏ 2,079 2,079 2,090 2,090
Other liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,491 1,491 1,508 1,508
Total liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,804 9,871 9,106 9,162
Stockholders' equity
Capital stockÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 131 131 131 131
Capital in excess of par value of stockÏÏÏÏÏÏÏ 3,297 3,297 3,288 3,288
Accumulated other comprehensive (loss) ÏÏÏÏ (46) (80) (21) (54)
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (34) (34) (19) (19)
Accumulated deÑcit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,499) (1,563) (1,521) (1,575)
Total stockholders' equityÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,849 1,751 1,858 1,771
Total liabilities and stockholders' equity ÏÏ $11,653 $11,622 $10,964 $10,933
In addition, certain amounts in Notes 3, 4, 5, 6, 9, 13, and 14 have been restated to reÖect
the restatement adjustments described above.
9
11. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 2. Restatement of Financial Statements Ì (Continued)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
First Quarter
2004 2003
As As
Originally As Originally As
Reported Restated Reported Restated
(in millions)
Cash and cash equivalents at January 1 ÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 953 $ 953 $1,204 $1,204
Cash Öows provided by (used in) operating activities ÏÏ 105 103 (135) (135)
Cash Öows used in investing activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (195) (193) (153) (153)
Cash Öows provided by (used in) Ñnancing activities ÏÏ 328 328 (22) (22)
EÅect of exchange rate changes on cash ÏÏÏÏÏÏÏÏÏÏÏÏÏ (4) (4) 2 2
Net increase (decrease) in cash and cash
equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 234 234 (308) (308)
Cash and cash equivalents at December 31 ÏÏÏÏÏÏÏÏÏÏ $1,187 $1,187 $ 896 $ 896
NOTE 3. Selected Costs, Income and Other Information
Depreciation and Amortization
Depreciation and amortization expenses are summarized as follows:
First Quarter
2004 2003
(in millions)
Depreciation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $140 $140
Amortization ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26 23
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $166 $163
Investments in AÇliates
The following table presents summarized Ñnancial data for those aÇliates accounted for
under the equity method. The amounts represent 100% of the results of operations of these
aÇliates. Visteon reports its share of their net income in the line quot;quot;Equity in net income of
aÇliated companies'' on the Consolidated Statement of Income.
First Quarter
2004 2003
(in millions)
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $334 $291
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 61 67
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21 30
10
12. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 3. Selected Costs, Income and Other Information Ì (Continued)
Purchase and Supply Agreement with Ford
Under the terms of the new purchase and supply agreement entered into with Ford on
December 19, 2003, Visteon agreed to pay Ford $150 million in lieu of additional productivity
price reductions on components supplied by Visteon in North America during 2003. This payment
was accrued for in 2003 as a reduction to sales. Visteon paid $50 million in December 2003 and
$100 million during the Ñrst quarter of 2004.
Accounts Receivable
The allowance for doubtful accounts was $39 million at March 31, 2004 and $35 million at
December 31, 2003.
Income Taxes
Visteon's provision (beneÑt) for income taxes, which is computed based upon income
(loss) before income taxes excluding equity in net income of aÇliated companies, reÖects an
eÅective tax rate of 44% for the Ñrst quarter of 2004, compared with (35%) for the Ñrst quarter
of 2003. The change in our eÅective tax rate is due primarily to the need to maintain full valuation
allowances against deferred tax assets in certain foreign jurisdictions. We expect our full year
2004 eÅective tax rate to be 38%; however, the rate could vary quarter-to-quarter. Further, the
rate is largely dependent on pre-tax income (loss) by country, and any changes in our forecast
or actual results could have a signiÑcant impact on our eÅective tax rate for a given quarter or
for the full year.
11
13. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 4. Stock-Based Awards
Starting January 1, 2003, Visteon began expensing the fair value of stock-based awards
granted to employees pursuant to Statement of Financial Accounting Standards No. 123
(quot;quot;SFAS 123''), quot;quot;Accounting for Stock-Based Compensation.'' This standard was adopted on a
prospective method basis for stock-based awards granted, modiÑed or settled after
December 31, 2002. For stock options and restricted stock awards granted prior to
January 1, 2003, Visteon measures compensation cost using the intrinsic value method. If
compensation cost for all stock-based awards had been determined based on the estimated fair
value of stock options and the fair value set at the date of grant for restricted stock awards, in
accordance with the provisions of SFAS 123, Visteon's reported net income (loss) and income
(loss) per share would have changed to the pro forma amounts indicated below:
First Quarter
2004 2003
(Restated)
(in millions, except
per share amounts)
Net income (loss), as reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20 $ (19)
Add: Stock-based employee compensation expense included
in reported net income (loss), net of related tax eÅects ÏÏÏ 2 1
Deduct: Total stock-based employee compensation expense
determined under fair value based method for all awards,
net of related tax eÅects ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4) (3)
Pro forma net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 18 $ (21)
Income (loss) per share:
As reported:
Basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $0.16 $(0.15)
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.16 (0.15)
Pro forma:
Basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $0.14 $(0.17)
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.14 (0.17)
NOTE 5. Special Charges
First Quarter 2004 Actions
In the Ñrst quarter of 2004, Visteon recorded pre-tax charges of $14 million in costs of sales
($10 million after-tax) which includes $9 million for the separation of about 50 hourly employees
located at Visteon's plants in Europe through a continuation of a special voluntary retirement and
separation program started in 2002, and $5 million related to the involuntary separation of about
220 employees as a result of the planned closure of our La Verpilliere, France, manufacturing
facility by the end of 2004. The involuntary separations of the employees at the La Verpilliere
facility are expected to occur at various times throughout 2004. Additional charges, if any, as a
result of the Ñnalization of employee termination beneÑts above those legally required, will be
recorded during the remainder of 2004 based on the estimated dates of the employee
separations. All of the other actions were substantially completed in the Ñrst quarter of 2004.
12
14. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 5. Special Charges Ì (Continued)
During the Ñrst quarter of 2004, Visteon paid Ford about $23 million of previously accrued
amounts related to an agreement entered into in 2003 to reimburse Ford for the actual net costs
of transferring seating production, including costs related to Ford hourly employee voluntary
retirement and separation programs that Ford is expected to implement.
First Quarter 2003 Actions
In the Ñrst quarter of 2003, Visteon recorded pre-tax charges of $31 million ($20 million
after-tax), with $26 million recorded in costs of sales and $5 million in selling, administrative and
other expenses. This includes $27 million related to the involuntary separation of about
135 U.S. salaried employees, the separation of about 35 hourly employees located at Visteon's
plants in Europe through a continuation of a special voluntary retirement and separation program
started in 2002, and the elimination of about 120 manufacturing positions in Mexico and other
minor actions. Included in the $31 million pre-tax charge are $4 million of non-cash charges
related to the write-down of a group of coiled spring and stamping equipment at our Monroe,
Michigan, plant for which production activities were discontinued and the future undiscounted
cash Öows were less than the carrying value of these Ñxed assets held for use. Visteon
measured the impairment loss by comparing the carrying value of these Ñxed assets to the
expected proceeds from disposal of the assets after completion of remaining production
commitments. The above actions were substantially completed during the Ñrst quarter of 2003.
Reserve Activity
Reserve balances of $32 million and $45 million at March 31, 2004 and December 31, 2003,
respectively, are included in current accrued liabilities on the accompanying balance sheets. The
March 31, 2004 reserve balance of $32 million includes $23 million related primarily to 2003
restructuring activities. Visteon currently anticipates that the restructuring activities to which all of
the above charges relate will be substantially completed by the end of 2004.
Automotive Glass Total
Operations Operations Visteon
(Restated)
(in millions)
December 31, 2003 reserve balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 45 $Ì $ 45
First quarter 2004 actions:
Included in costs of sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 Ì 14
Total net expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 59 Ì 59
Utilization ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (27) Ì (27)
March 31, 2004 reserve balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 32 $Ì $ 32
Utilization in the Ñrst quarter of 2004 of $27 million was primarily related to severance pay.
On April 14, 2004, Visteon announced its intention to move a portion of its Bedford, Indiana,
plant operations to an undetermined manufacturing site. This action could affect about 600 of the
plant's 1,150 hourly and salaried employees. Timing of this intended move has not been determined.
Charges related to this move, if any, will be recognized as appropriate when detailed move plans are
completed and the terms of any termination beneÑt arrangements are established.
13
15. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 6. Employee Retirement BeneÑts
Visteon's retirement plans' expense for the Ñrst quarter of 2004 and 2003 are summarized
as follows:
Health Care
and Life
Retirement Plans Insurance
U.S. Plans Non-U.S. Plans BeneÑts
2004 2003 2004 2003 2004 2003
(Restated)
(in millions)
First Quarter
Service cost ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 14 $ 13 $ 9 $ 8 $ 11 $ 9
Interest cost ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17 15 17 13 16 13
Expected return on plan assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (16) (14) (15) (13) Ì Ì
Amortization of:
Plan amendments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 2 3 2 Ì Ì
(Gains) losses and otherÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 Ì Ì Ì 6 3
Special termination beneÑtsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 3 7 Ì Ì
Expense for Visteon-assigned Ford-UAW and certain
salaried employeesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31 21 Ì Ì 37 83
Net pension/postretirement expense ÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 49 $ 37 $ 17 $ 17 $ 70 $108
As discussed in our 2003 Annual Report on Form 10-K, Visteon's expected contributions
during 2004 to U.S. retirement plans and postretirement health care and life insurance plans are
$193 million and $72 million, respectively, including payments to Ford of $115 million and
$38 million, respectively. As of March 31, 2004, contributions to U.S. retirement plans and
postretirement health care and life insurance plans were $23 million and $15 million, respectively,
including payments to Ford of $17 million and $14 million, respectively.
The Medicare Prescription Drug Improvement and Modernization Act of 2003 (the quot;quot;Medicare
Act'') was signed into law on December 8, 2003. This legislation provides for a federal subsidy
beginning in 2006 to sponsors of retiree healthcare beneÑt plans that provide a beneÑt at least
actuarially equivalent to the beneÑt established by the law. Visteon's plans generally provide
retiree drug beneÑts that exceed the value of the beneÑt that will be provided by Medicare
Part D, and we have concluded that our plans are actuarially equivalent, pending further deÑnition
of the criteria used to determine equivalence. This subsidy is estimated to reduce the beneÑt
obligation for Visteon plans by $87 million as of March 31, 2004, and will be recognized through
reduced retiree healthcare expense over the related employee future service lives, subject to Ñnal
accounting guidance to be issued by the Financial Accounting Standards Board.
As a result of charges during the period as well as the effect of the Medicare Act, the portion of
the postretirement benefit obligation payable to Ford considered contingently payable is
$1,079 million and $1,138 million at March 31, 2004 and December 31, 2003, respectively.
14
16. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 7. Asset Securitization
In the Ñrst quarter of 2004, Visteon established a $100 million revolving accounts receivable
securitization facility in the United States (quot;quot;facility agreement''). Under this facility agreement,
Visteon can sell a portion of its U.S. trade receivables to Visteon Receivables LLC (quot;quot;VRL''), a
wholly-owned consolidated special purpose entity. VRL may then sell, on a non-recourse basis
(subject to certain limited exceptions), an undivided interest in the receivables to an
asset-backed, multi-seller commercial paper conduit, which is unrelated to Visteon or VRL. The
conduit typically Ñnances the purchases through the issuance of commercial paper, with back-up
purchase commitments from the conduit's Ñnancial institution. The sale of the undivided interest
in the receivables from VRL to the conduit will be accounted for as a sale under the provisions of
Statement of Financial Accounting Standards No. 140, quot;quot;Accounting for the Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities.'' When VRL sells an undivided
interest to the conduit, VRL retains the remaining undivided interest. The value of the undivided
interest sold to the conduit will be excluded from our consolidated balance sheet and will reduce
our accounts receivable balance. This facility expires in March 2005 and can be extended
annually through March 2008 based upon the mutual agreement of the parties. Additionally, this
facility contains Ñnancial covenants similar to our unsecured revolving credit facilities. In
April 2004, VRL made an initial sale of a $25 million undivided interest in about $300 million of
total receivables.
As of March 31, 2004, Visteon has sold euro 35 million ($43 million) of trade receivables
under a European sale of receivables agreement with a bank. This agreement provides for the
sale of up to euro 40 million in trade receivables.
NOTE 8. Debt
March 31, December 31,
2004 2003
(in millions)
Debt payable within one year
Commercial paper ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 27 $ 81
Other Ì short-term ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 214 234
Current portion of long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 36
Total debt payable within one year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 276 351
Long-term debt
8.25% notes due August 1, 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 723 716
7.95% notes due August 1, 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 516 518
7.00% notes due March 10, 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 452 Ì
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 254 233
Total long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,945 1,467
Total debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,221 $1,818
15
17. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 8. Debt Ì (Continued)
On March 10, 2004, Visteon completed a public oÅering of unsecured Ñxed-rate term debt
securities totaling $450 million with a maturity of ten years. The securities bear interest at a
stated rate of 7.00%, with interest payable semi-annually on March 10 and September 10,
beginning on September 10, 2004. The securities rank equally with Visteon's existing and future
unsecured Ñxed-rate term debt securities and senior to any future subordinated debt. The
unsecured term debt securities agreement contains certain restrictions, including, among others,
a limitation relating to liens and sale-leaseback transactions, as deÑned in the agreement. In the
opinion of management, Visteon was in compliance with all of these restrictions. In addition, an
interest rate swap has been entered into for a portion of this debt ($225 million). This swap
eÅectively converts the securities from Ñxed interest rate to variable interest rate instruments.
On April 6, 2004, Visteon repurchased $250 million of Visteon's existing 7.95% Ñve-year
notes maturing on August 1, 2005. In the second quarter of 2004, Visteon will record a pre-tax
debt extinguishment charge of $11 million, which consists of redemption premiums and
transaction costs ($19 million), oÅset partially by the accelerated recognition of gains from
interest rate swaps associated with the repurchased debt ($8 million).
NOTE 9. Income (Loss) Per Share of Common Stock
Basic income (loss) per share of common stock is calculated by dividing reported net
income (loss) by the average number of shares of common stock outstanding during the
applicable period, adjusted for restricted stock. The calculation of diluted income (loss) per
share takes into account the eÅect of dilutive potential common stock, such as stock options,
and contingently returnable shares, such as restricted stock.
First Quarter
2004 2003
(Restated)
(in millions, except
per share amounts)
Numerator:
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20 $ (19)
Denominator:
Average common stock outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 129.9 129.9
Less: Average restricted stock outstandingÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4.6) (3.9)
Basic shares ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 125.3 126.0
Net dilutive eÅect of restricted stock and stock options ÏÏÏÏÏ 3.2 Ì
Diluted shares ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 128.5 126.0
Income (loss) per share:
Basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $0.16 $(0.15)
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.16 (0.15)
16
18. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 9. Income (Loss) Per Share of Common Stock Ì (Continued)
For the Ñrst quarter of 2003 potential common stock of about 515,000 shares are excluded
from the calculation of diluted income (loss) per share because the eÅect of including them
would have been antidilutive.
NOTE 10. Variable Interest Entities
In December 2003, the FASB issued revised Interpretation No. 46 (quot;quot;FIN 46'') quot;quot;Consolidation of
Variable Interest Entities.'' Until this interpretation, a company generally included another entity in its
consolidated financial statements only if it controlled the entity through voting interests. FIN 46
requires a variable interest entity to be consolidated by a company if that company is subject to a
majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority
of the entity's residual returns. Application of FIN 46 was required during the fourth quarter of 2003
for interests in structures that are commonly referred to as special-purpose entities and for all other
types of variable interest entities in the first quarter of 2004.
During the Ñrst quarter of 2004, Visteon began to consolidate Lextron/Visteon Automotive
Systems, a joint venture with Lextron Corporation located in Canton, Mississippi, which started to
supply integrated cockpit modules and front-end modules to Nissan in late 2003. Visteon owns
49% of this joint venture. Consolidation of this entity was based on an assessment of the amount
of equity investment at risk, the subordinated Ñnancial support provided by Visteon, and
Visteon's supply of the joint venture's inventory. The eÅect of consolidating this entity on
Visteon's results of operations or Ñnancial position as of March 31, 2004 was not signiÑcant as
substantially all of the joint venture's liabilities and costs are related to activity with Visteon.
From June 30, 2002, a variable interest entity owned by an aÇliate of a bank is included in
Visteon's consolidated Ñnancial statements. This entity was established in early 2002 to build a
leased facility for Visteon to centralize customer support functions, research and development,
and administrative operations. Construction of the facility is planned to be completed in 2004 at a
cost of about $250 million, with initial occupancy starting in mid-2004. The lease agreement
requires Visteon to make lease payments after construction is substantially completed equal to all
interest then due and payable by the variable interest entity under the related credit agreement.
The lease term expires in 2017, at which time Visteon is required to either purchase the facility at
a price equal to the sum of all borrowings under the related credit agreement, less certain
proceeds and other amounts applied against the balance, or renew the lease upon the mutual
agreement of Visteon and the lessor. As of March 31, 2004, this entity has incurred about
$159 million in expenditures related to this facility.
17
19. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 11. Product Warranty
A reconciliation of changes in the product warranty liability is summarized as follows:
First Quarter
2004
(in millions)
Beginning Balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $22
Accruals for products shipped ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7
Accruals for pre-existing warranties (including changes in estimates) ÏÏ 9
Settlements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (8)
Ending Balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $30
NOTE 12. Inventories
Inventories are summarized as follows:
March 31, December 31,
2004 2003
(Restated)
(in millions)
Raw materials, work-in-process and supplies ÏÏÏÏÏÏÏÏÏÏÏ $592 $518
Finished products ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 236 243
Total inventories ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $828 $761
U.S. inventories ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $472 $436
NOTE 13. Comprehensive Income
Comprehensive income is summarized as follows:
First Quarter
2004 2003
(Restated)
(in millions)
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20 $(19)
Change in foreign currency translation adjustments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (28) 15
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 7
Total comprehensive (loss) income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (6) $ 3
Accumulated other comprehensive loss is comprised of the following:
March 31, December 31,
2004 2003
(Restated)
(in millions)
Foreign currency translation adjustments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 69 $ 97
Realized and unrealized gains on derivatives, net of taxÏÏÏÏ 9 8
Unrealized loss on marketable securities, net of tax ÏÏÏÏÏ Ì (1)
Minimum pension liability, net of tax ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (158) (158)
Total accumulated other comprehensive loss ÏÏÏÏÏÏÏÏÏÏ $ (80) $ (54)
18
20. VISTEON CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
(unaudited)
NOTE 14. Segment Information
Visteon's reportable operating segments are Automotive Operations and Glass Operations.
Financial information for the reportable operating segments is summarized as follows:
Automotive Glass Total
Operations Operations Visteon
(Restated)
(in millions)
First Quarter
2004:
Sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 4,833 $139 $ 4,972
Income (loss) before taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34 9 43
Net income (loss)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 6 20
Special charges before taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 Ì 14
Special charges after taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10 Ì 10
Total assets, end of period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11,354 268 11,622
2003:
Sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 4,551 $153 $ 4,704
Income (loss) before taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (29) 4 (25)
Net income (loss)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (22) 3 (19)
Special charges before taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30 1 31
Special charges after taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 1 20
Total assets, end of period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11,159 285 11,444
NOTE 15. Litigation and Claims
Various legal actions, governmental investigations and proceedings, and claims are pending or
may be instituted or asserted in the future against Visteon, including those arising out of alleged
defects in Visteon's products; governmental regulations relating to safety; employment-related
matters; customer, supplier and other contractual relationships; intellectual property rights; product
warranties; product recalls; and environmental matters. Some of the foregoing matters involve or
may involve compensatory, punitive or antitrust or other treble damage claims in very large amounts,
or demands for recall campaigns, environmental remediation programs, sanctions, or other relief
which, if granted, would require very large expenditures.
Litigation is subject to many uncertainties, and the outcome of individual litigated matters is
not predictable with assurance. Reserves have been established by Visteon for matters
discussed in the foregoing paragraph where losses are deemed probable; these reserves are
adjusted periodically to reÖect estimates of ultimate probable outcomes. It is reasonably possible,
however, that some of the matters discussed in the foregoing paragraph for which reserves have
not been established could be decided unfavorably to Visteon and could require Visteon to pay
damages or make other expenditures in amounts, or a range of amounts, that cannot be
estimated at March 31, 2004. Visteon does not reasonably expect, based on its analysis, that any
adverse outcome from such matters would have a material eÅect on our Ñnancial condition,
results of operations or cash Öows, although such an outcome is possible.
19
21. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
Visteon Corporation
We have reviewed the accompanying consolidated balance sheet of Visteon Corporation and
its subsidiaries as of March 31, 2004, and the related consolidated statement of income for each
of the three-month periods ended March 31, 2004 and March 31, 2003 and the condensed
consolidated statement of cash Öows for the three-month periods ended March 31, 2004 and
March 31, 2003. These interim Ñnancial statements are the responsibility of the Company's
management.
We conducted our review in accordance with the standards of the Public Company
Accounting Oversight Board (United States). A review of interim Ñnancial information consists
principally of applying analytical procedures and making inquiries of persons responsible for
Ñnancial and accounting matters. It is substantially less in scope than an audit conducted in
accordance with the standards of the Public Company Accounting Oversight Board
(United States), the objective of which is the expression of an opinion regarding the Ñnancial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modiÑcations that should be made to
the accompanying consolidated interim Ñnancial statements for them to be in conformity with
accounting principles generally accepted in the United States of America.
We previously audited in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the consolidated balance sheet as of December 31, 2003, and
the related consolidated statements of operations, stockholders' equity, and of cash Öows for the
year then ended (not presented herein), and in our report dated January 22, 2004, except as to
the eÅects of the matters described in Note 2, which are as of March 16, 2005, we expressed an
unqualiÑed opinion on those consolidated Ñnancial statements. In our opinion, the information set
forth in the accompanying consolidated balance sheet information as of December 31, 2003, is
fairly stated in all material respects in relation to the consolidated balance sheet from which it
has been derived.
As discussed in Note 2 to the consolidated Ñnancial statements, the Company restated its
Ñnancial statements as of March 31, 2004 and December 31, 2003 and for each of the three-
month periods ended March 31, 2004 and March 31, 2003.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Detroit, Michigan
April 20, 2004, except as to the eÅects of the matters described in Note 2, which are as of
March 16, 2005
20
22. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESTATEMENT
Visteon has restated its previously issued consolidated Ñnancial statements for 2001 through
2003 and for the Ñrst three months of 2004, primarily for accounting corrections related to
postretirement health care and pension costs, tooling costs, capital equipment costs, inventory
costing and income taxes.
As a result of the restatement, net income decreased $10 million (33.3% of the originally
reported amount) for the Ñrst three months ended March 31, 2004 and net loss increased
$4 million (26.7% of the originally reported amount) for the Ñrst three months ended
March 31, 2003. The restatement decreased reported net income per share by $0.07 for the
Ñrst three months ended March 31, 2004 and increased reported net loss per share by $0.03
for the Ñrst three months ended March 31, 2003.
Further information on the nature and impact of these adjustments is provided in Note 2,
quot;quot;Restatement of Financial Statements'' to our consolidated Ñnancial statements included
elsewhere in this Form 10-Q/A.
The financial data presented herein are unaudited, but in the opinion of management reflect
those adjustments, including normal recurring adjustments, necessary for a fair statement of such
information. Reference should be made to the consolidated financial statements and accompanying
notes included in the company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2003, as filed with the Securities and Exchange Commission on February 13, 2004
and as amended on March 16, 2005.
Overview
Visteon's worldwide sales for the Ñrst quarter of 2004 were $5.0 billion, compared with
$4.7 billion for the same period in 2003. Much of the increase in sales was a result of higher
sales to non-Ford customers, which increased 36% over Ñrst quarter 2003 levels, and the
favorable impact of exchange rates. Ford's Ñrst quarter 2004 combined production volumes for
North America and Europe, our primary sales markets with Ford, were down slightly compared
with the same period last year. As a result, our Ñrst quarter 2004 sales to Ford declined slightly
compared to the same period in 2003.
Net income for the Ñrst quarter of 2004 was $20 million, or $0.16 per share, an improvement
of $39 million over a net loss of $19 million, or $0.15 per share, for the Ñrst quarter of 2003.
ProÑt improvement came from cost reductions, increased non-Ford business, and restructuring
eÅorts. We expect recent initiatives, such as the European Plan for Growth, the exit from our
unproÑtable ChesterÑeld seating operations and the restructuring of postretirement beneÑt
obligations to Ford, to continue to beneÑt us on our path to proÑtability.
We continue to focus on cash Öow generation and maintaining a strong liquidity position. Our
cash provided by operating activities was $103 million, a $238 million improvement from the Ñrst
quarter of 2003, and we ended the quarter with $1.2 billion in cash and marketable securities.
During the quarter, we improved our trade working capital Öows, issued new public debt
securities, commenced a tender oÅer to repurchase a portion of our outstanding debt securities
that mature in 2005 and set in place a revolving accounts receivable securitization facility.
21
23. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS Ì (Continued)
Restructuring, Dispositions and Special Charges
The table below presents special charges related to restructuring initiatives and other actions
during the Ñrst quarter of 2004 and 2003:
Automotive Glass Total
Operations Operations Visteon
(in millions)
First Quarter 2004 (Restated):
Special charges:
European Plan for GrowthÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (9) $Ì $ (9)
Other actions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (5) Ì (5)
Total Ñrst quarter 2004 special charges, before taxes ÏÏÏÏÏ $(14) $Ì $(14)
Total Ñrst quarter 2004 special charges, after taxes ÏÏÏÏÏÏÏ $(10) $Ì $(10)
First Quarter 2003:
Special charges:
North American salaried restructuring ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(18) $Ì $(18)
Monroe Plant equipment write-down ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4) Ì (4)
European Plan for GrowthÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3) Ì (3)
Other actions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (5) (1) (6)
Total Ñrst quarter 2003 special charges, before taxes ÏÏÏÏÏ $(30) $(1) $(31)
Total Ñrst quarter 2003 special charges, after taxes ÏÏÏÏÏÏÏ $(19) $(1) $(20)
In the Ñrst quarter of 2004, Visteon recorded pre-tax charges of $14 million in costs of sales
($10 million after-tax) which includes $9 million for the separation of about 50 hourly employees
located at several Visteon plants in Europe through a continuation of a special voluntary
retirement and separation program started in 2002, and an additional $5 million related to the
involuntary separation of about 220 employees as a result of the planned closure of our
La Verpilliere, France, manufacturing facility by the end of 2004. The involuntary separations of
the employees at the La Verpilliere facility are expected to occur at various times throughout
2004. Additional charges, if any, as a result of the Ñnalization of employee termination beneÑts
above those legally required, will be recorded during the remainder of 2004 based on the
estimated dates of the employee separations. All of the other actions were substantially
completed in the Ñrst quarter of 2004.
In the Ñrst quarter of 2003, Visteon recorded pre-tax charges of $31 million ($20 million
after-tax). These charges include $18 million related to the involuntary separation of about
135 U.S. salaried employees, $3 million for the separation of about 35 hourly employees located
at Visteon's plants in Europe through a continuation of a special voluntary retirement and
separation program started in 2002, and $6 million for the elimination of about 120 manufacturing
positions in Mexico and other minor actions. Included in the $31 million pre-tax charge are
$4 million of non-cash charges related to the write-down of a group of coiled spring and
stamping equipment at our Monroe, Michigan, plant for which production activities were
discontinued and the future undiscounted cash Öows were less than the carrying value of these
Ñxed assets held for use. Visteon measured the impairment loss by comparing the carrying value
of these Ñxed assets to the expected proceeds from disposal of the assets after completion of
remaining production commitments. The above actions were substantially completed during the
Ñrst quarter of 2003.
22
24. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS Ì (Continued)
Cash payments related to special charges, including those for severance and special pension
beneÑts, were $67 million and $41 million during the Ñrst quarters of 2004 and 2003, respectively.
The Ñrst quarter 2004 amount includes payments to Ford of about $23 million of previously
accrued amounts related to an agreement entered into in 2003 to reimburse Ford for the actual
net costs of transferring seating production, including costs related to Ford hourly employee
voluntary retirement and separation programs that Ford is expected to implement.
We continue to evaluate the possibility of partnerships, sales or closings involving other
under-performing or non-core businesses. However, there can be no assurance that a transaction
or other arrangement favorable to Visteon will occur in the near term or at all. On April 14, 2004,
Visteon announced its intention to move a portion of its Bedford, Indiana, plant operations to an
undetermined manufacturing site. This action could affect about 600 of the plant's 1,150 hourly and
salaried employees. Timing of this intended move has not been determined. Charges related to this
move, if any, will be recognized as appropriate when detailed move plans are completed and the
terms of any termination benefit arrangements are established.
Results of Operations
First Quarter 2004 Compared with First Quarter 2003
Sales for each of our segments for the Ñrst quarter of 2004 and 2003 are summarized in the
following table:
2004
First Quarter over/(under)
2004 2003 2003
(in millions)
Automotive Operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4,833 $4,551 $282
Glass Operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 139 153 (14)
Total sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4,972 $4,704 $268
Memo: Sales to non-Ford customers
Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,335 $ 983 $352
Percentage of total sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27% 21% 6 pts
Sales for Automotive Operations were $4.8 billion in 2004, compared with $4.6 billion in
2003, an increase of $282 million or 6%. This increase reÖects favorable currency changes of
$196 million and the impact of new business primarily with non-Ford customers oÅset partially by
price reductions. Additionally, 2004 sales were aÅected by the loss of $128 million in revenue
from the exit of seating operations on June 23, 2003.
Sales for Glass Operations were $139 million in 2004, compared with $153 million in 2003,
a decrease of $14 million or 9%, resulting primarily from lower Ford North America production
volume.
Costs of Sales for the Ñrst quarter of 2004 were $4.7 billion, up $175 million compared with
the Ñrst quarter of 2003. Costs of sales includes primarily material, labor, manufacturing
overhead and other costs, such as product development costs. The increase reÖects currency
Öuctuations of $175 million, and higher variable costs associated with new business with
customers, oÅset partially by an elimination of variable costs of $153 million resulting from the
exit of our seating operations, and favorable cost performance. Special charges included in this
line item were $14 million in 2004 and $26 million in 2003.
23
25. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS Ì (Continued)
Selling, administrative and other expenses for the Ñrst quarter of 2004 were $265 million,
$21 million higher compared with the Ñrst quarter of 2003. The increase reÖects primarily
incremental Information Technology (quot;quot;IT'') actions of $22 million. Costs associated with such
incremental IT actions are expected to continue into mid-2004. Special charges included in this
line item were $5 million for 2003.
Net interest expense of $19 million in the Ñrst quarter of 2004 was even with the Ñrst
quarter of 2003.
Equity in net income of aÇliated companies was $11 million in the Ñrst quarter of 2004,
compared with $15 million in the Ñrst quarter of 2003, with the decrease related primarily to our
aÇliates in Asia.
Income (loss) before income taxes, and minority interests, including and excluding special
charges, is the primary proÑtability measure used by our chief operating decision makers. The
following table shows income (loss) before income taxes for the Ñrst quarter of 2004 and 2003,
for each of our segments:
2004
First Quarter over
2004 2003 2003
(Restated)
(in millions)
Automotive Operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 34 $(29) $63
Glass OperationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9 4 5
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 43 $(25) $68
Memo:
Special charges included above ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(14) $(31) $17
Automotive Operations' Ñrst quarter 2004 proÑt before income taxes was $34 million
compared with a loss of $29 million for the Ñrst quarter of 2003. Special charges before taxes in
2004 were down $17 million from 2003. Additionally, 2003 results include a loss of $25 million
from seating operations that were exited June 23, 2003. Results were aÅected also by new
business and favorable cost performance, oÅset partially by price reductions.
ProÑt before income taxes for Glass Operations in Ñrst quarter of 2004 was $9 million
compared with $4 million before taxes for the Ñrst quarter of 2003, reÖecting favorable cost
performance, oÅset partially by lower volume.
Provision (beneÑt) for income taxes represents an eÅective income tax rate of 44% in the
Ñrst quarter of 2004 compared with (35%) in the Ñrst quarter of the prior year. The change in
our eÅective tax rate is primarily due to the need to maintain full valuation allowances against
deferred tax assets in certain foreign jurisdictions.
Minority interests in net income of subsidiaries was $9 million in the Ñrst quarter of 2004,
compared with $8 million in the Ñrst quarter of 2003. Minority interest amounts are related
primarily to our 70% ownership interest in Halla Climate Control Corporation located in Korea.
24
26. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS Ì (Continued)
Net income (loss) for the Ñrst quarter of 2004 and 2003 are shown in the following table for
each of our segments:
2004
First Quarter over
2004 2003 2003
(Restated)
(in millions)
Automotive Operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 14 $(22) $36
Glass OperationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6 3 3
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20 $(19) $39
Memo:
Special charges included above ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(10) $(20) $10
Visteon reported a net proÑt for the Ñrst quarter of 2004 of $20 million compared with a net
loss of $19 million for the Ñrst quarter of 2003 because of the factors described above in income
(loss) before income taxes. Special charges after taxes were $10 million and $20 million for the
Ñrst quarter of 2004 and 2003, respectively.
Liquidity and Capital Resources
Overview
Visteon's funding objective is to Ñnance its worldwide business with cash from operations,
supplemented when required by a combination of liquidity sources, including but not limited to
cash and cash investments, receivables programs, and committed and uncommitted bank
facilities and securities issuance. These sources are used also to fund working capital needs,
which are highly variable during the year because of changing customer production schedules.
Visteon's balance sheet reÖects cash and marketable securities of $1,188 million and total
debt of $2,221 million at March 31, 2004, compared with cash and marketable securities of
$956 million and total debt of $1,818 million at December 31, 2003. Net debt, deÑned as the
amount by which total debt exceeds total cash and marketable securities, was $1,033 million at
March 31, 2004, and $862 million at December 31, 2003. The increase in cash and marketable
securities is more than explained by the March 2004 issuance of $450 million in debt securities,
and the increase in net debt is primarily due to an increase in trade working capital related to
higher volumes at the end of the Ñrst quarter compared with the year-end shutdown period.
Visteon's ratio of total debt to total capital, which consists of total debt plus total stockholders'
equity, was 56% at March 31, 2004 and 51% at December 31, 2003, and increased primarily
because of the recent debt issuance.
Financing Arrangements
On March 10, 2004, Visteon completed a public oÅering (the quot;quot;Notes Sale'') of unsecured
Ñxed-rate 7.00% term debt securities totaling $450 million in aggregate principal amount due in
March 2014. Proceeds from the Notes Sale were used for a debt retirement and for general
corporate purposes. Concurrent with the Notes Sale, Visteon announced an oÅer (the quot;quot;Tender
OÅer'') to purchase for cash up to $250 million aggregate principal amount of our 7.95% notes
due in August 2005. The Tender OÅer expired on April 2, 2004 and $250 million of these notes
were retired on April 6, 2004.
25
27. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS Ì (Continued)
In March 2004, Visteon established a $100 million revolving accounts receivable
securitization facility (the quot;quot;facility'') in the U.S. The facility allows for sale of a portion of U.S.
trade receivables to a wholly-owned consolidated special purpose entity, Visteon Receivables
LLC (quot;quot;VRL''), which may then sell an undivided interest in the receivables to an asset-backed
multi-seller conduit which is unrelated to Visteon or VRL. In April 2004, VRL made an initial
receivables sale to the conduit of $25 million. The facility expires in March 2005 and is
extendable annually through March 2008 through mutual agreement of both parties, as discussed
further in Note 7 to the consolidated Ñnancial statements.
Visteon has Ñnancing arrangements with a syndicate of third-party lenders providing
contractually committed, unsecured revolving credit facilities in an aggregate maximum amount of
$1,580 million (the quot;quot;Credit Facilities''). The Credit Facilities include a 364-day revolving credit
line in the amount of $555 million, which expires June 2004, and a Ñve-year revolving credit line
in the amount of $775 million, which expires June 2007. Visteon is currently renegotiating the
364-day facility that expires in June. The Credit Facilities also include a Ñve-year, delayed-draw
term loan in the amount of $250 million, which will be used primarily to Ñnance new construction
for facilities consolidation in Southeast Michigan. During the Ñrst quarter of 2004, the 364-day
revolving credit line agreement was amended to increase various interest rates applicable to
borrowings under such facility. At March 31, 2004, there were no borrowings outstanding under
the 364-day facility or the Ñve-year facility; there were $47 million of obligations under standby
letters of credit under the Ñve-year facility, and $128 million borrowed against the delayed-draw
term loan. The Credit Facilities contain certain aÇrmative and negative covenants, including a
Ñnancial covenant not to exceed a leverage ratio of net debt to EBITDA (excluding special
charges and other items) of 3.5 to 1. Increases in the ratio of net debt to EBITDA can occur
during quarters following seasonal shutdown periods, when cash usage increases. In the opinion
of management, Visteon has been in compliance with all covenants since the inception of the
Credit Facilities. During 2004, we expect to continue to be in compliance, although there can be
no assurance that this will be the case especially during quarters following seasonal shutdown
periods, when our cash usage may increase signiÑcantly.
Visteon has maintained a commercial paper program utilizing the Credit Facilities as backup.
As of March 31, 2004, we had $27 million outstanding under our commercial paper program
compared with $81 million outstanding at December 31, 2003.
Visteon maintains a trade payables program through General Electric Capital Corporation
(quot;quot;GECC'') that provides Ñnancial Öexibility to Visteon and its suppliers. The program is presently
under review by both parties. When a supplier participates in the program, GECC pays the
supplier the amount due from Visteon in advance of the original due date. In exchange for the
earlier payment, our suppliers accept a discounted payment. Visteon pays GECC the full amount.
Approximately $100 million was outstanding to GECC under this program at March 31, 2004 and
December 31, 2003. As part of the same program with GECC, Visteon is allowed to defer
payment to GECC for a period of up to 30 days. At March 31, 2004, Visteon had not exercised
the deferral option of the program.
In addition, Visteon at times participates in a trade payables program offered by one of our
customers. When we participate, our receivables are reduced and our cash balances are increased.
We did not participate in the program as of March 31, 2004, although at December 31, 2003 our
receivables had been reduced by $75 million due to this program.
Visteon has entered into interest rate swaps to manage our interest rate risk. These swaps
eÅectively convert a portion of Visteon's Ñxed rate debt into variable rate debt, and as a result,
approximately 40% of Visteon's borrowings are eÅectively on a Ñxed rate basis, while the
remainder is subject to changes in short-term interest rates.
26
28. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS Ì (Continued)
Credit Ratings
Our long-term credit rating with Standard & Poor's (quot;quot;S&P'') is BB°; with Moody's it is Ba1,
and with Fitch it is BBB¿. Both S&P and Moody's rate Visteon as quot;quot;stable.'' Fitch rates our
short-term credit as F3. Both S&P and Moody's have covered Visteon since June 2000, while
Fitch initiated coverage on June 11, 2003. We continue to have access to suÇcient liquidity, and
believe we will continue to have access, to meet ongoing operating requirements although that
access is less reliable and could be more costly than it was previously.
Cash Requirements
Visteon's expected cash outÖows related to debt have changed since December 31, 2003 as
a result of completing in March 2004 the Notes Sale and the April 2004 Tender OÅer as
discussed further in Note 8 to the consolidated Ñnancial statements.
As of March 31, 2004, Visteon had guaranteed about $22 million of borrowings held by
unconsolidated joint ventures. In addition, we have guaranteed Tier 2 suppliers' debt and lease
obligations of about $16 million at March 31, 2004 to ensure the continued supply of essential
parts.
Cash required to meet capital expenditure needs in the Ñrst quarter 2004 was $196 million.
Capital expenditures in 2004 are expected to be higher than historic levels as described below
under quot;quot;Cash Flows Ì Investing Activities.'' Visteon's cash and liquidity needs also are impacted
by the level, variability, and timing of our customers' worldwide vehicle production, which varies
based on economic conditions and market shares in major markets. Our intra-year needs are
impacted also by seasonal eÅects in the industry, such as the shutdown of operations for about
two weeks in July, the subsequent ramp-up of new model production and the additional
one-week shutdown in December by our primary North American customers. These seasonal
eÅects normally require use of liquidity resources during the Ñrst and third quarters.
Visteon expects improved performance for 2004 will result in cash from operating activities
exceeding capital expenditure requirements, although this may not be the case during speciÑc
quarters. Based on our present assessment of future customer production levels over a two-year
time horizon, we believe we can meet general and seasonal cash needs using cash Öows from
operations, cash balances and borrowings, if needed. Visteon also believes we can supplement
these sources with access to the capital markets on satisfactory terms and in adequate amounts,
if needed, although there can be no assurance that this will be the case.
Pension and Postretirement BeneÑts
First quarter 2004 postretirement healthcare and life insurance expense decreased by
$38 million when compared with the same period in 2003, primarily as a result of Visteon's
amended and restated agreements with Ford and the Medicare Act. Pension expense for Ñrst
quarter of 2004 and 2003 was $66 million and $54 million, respectively, primarily reÖecting lower
discount rates and the eÅect of the 2003 Ford-UAW collective bargaining agreement.
27