Non-Consolidated Affiliates

3 Months Ended

Mar. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

Non-Consolidated Affiliates

NOTE 3. Non-Consolidated Affiliates

The Company recorded equity in the net income of non-consolidated affiliates of $2 million and $44 million for the three-month periods ended March 31, 2014 and 2013, respectively. Investments in non-consolidated affiliates were $189 million and $228 million at March 31, 2014 and December 31, 2013, respectively. At March 31, 2014, non-consolidated affiliates accounted for under the equity method totaled $150 million and non-consolidated affiliates accounted for under the cost method totaled $39 million. Effective December 17, 2013 and in accordance with the Master Agreement, the Company, among other things, completed the sale of its 50% ownership interest in Yanfeng and changed from the equity method to the cost method of accounting for certain Yanfeng related Interiors joint ventures, including Yanfeng Visteon Jinqiao Automotive Trim Systems Co., Ltd.

The Company monitors its investments in the net assets of non-consolidated affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss is recorded, which is measured as the difference between carrying value and fair value. In April 2014, the Company completed the sale of its 50% ownership interest in Duckyang Industry Co., Ltd. ("Duckyang"), a Korean automotive interiors supplier. In connection with the transaction, the Company received total cash of approximately $31 million, including $6 million of dividends. The Company expects to record a pre-tax gain of approximately $2 million on this transaction.