10-Q

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 27, 2014
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                             to                              .

Commission File No. 001-31970

TRW Automotive Holdings Corp.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization) 81-0597059
(I.R.S. Employer
Identification Number)

12001 Tech Center Drive, Livonia, Michigan 48150
(Address of principal executive offices)

(734) 855-2600
(Registrant's telephone number, including area code)

Not applicable
(Former name, former address or former fiscal year, if changed since last report)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed 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 file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

        Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer ý Accelerated filer o Non-accelerated filer o
(Do not check if a
smaller reporting company) Smaller reporting company o

        Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No ý

        As of July 23, 2014, the number of shares outstanding of the registrant's Common Stock was 111,237,505.

TRW Automotive Holdings Corp.
Index

		Page
	PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements		2
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		43
Item 4.	Controls and Procedures		43
	PART II—OTHER INFORMATION
Item 1.	Legal Proceedings		44
Item 1A.	Risk Factors		44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		44
Item 5.	Other Information		44
Item 6.	Exhibits		44
Signatures			46

1

PART I—FINANCIAL INFORMATION

Item 1.    Financial Statements

TRW Automotive Holdings Corp.

Consolidated Statements of Earnings

	Three Months Ended						Six Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
	(Unaudited)
	(In millions, except per share amounts)
Sales	$	4,593		$	4,514		$	9,035		$	8,727
Cost of sales		4,026			3,983			7,968			7,769
Gross profit		567			531			1,067			958
Administrative and selling expenses		169			147			335			288
Restructuring charges and asset impairments		6			1			26			38
Other expense (income)—net		9			(2	)		15			(6	)
Operating income		383			385			691			638
Interest expense—net		26			34			57			64
Loss on retirement of debt—net		—			5			—			5
Equity in earnings of affiliates, net of tax		(10	)		(11	)		(20	)		(23	)
Earnings before income taxes		367			357			654			592
Income tax expense		92			97			170			159
Net earnings		275			260			484			433
Less: Net earnings attributable to noncontrolling interest, net of tax		10			12			20			23
Net earnings attributable to TRW	$	265		$	248		$	464		$	410
Basic earnings per share:
Earnings per share	$	2.39		$	2.09		$	4.14		$	3.44
Weighted average shares outstanding		110.8			118.9			112.0			119.2
Diluted earnings per share:
Earnings per share	$	2.27		$	1.99		$	3.95		$	3.28
Weighted average shares outstanding		117.4			125.8			118.6			126.3

See accompanying notes to unaudited condensed consolidated financial statements.

2

TRW Automotive Holdings Corp.

Consolidated Statements of Comprehensive Earnings

	Three Months Ended						Six Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
	(Unaudited)
	(Dollars in millions)
Net earnings	$	275		$	260		$	484		$	433
Other comprehensive earnings (losses):
Foreign currency translation		33			(30	)		33			(117	)
Retirement obligations, net of tax		(4	)		(33	)		(1	)		(18	)
Deferred cash flow hedges, net of tax		24			(24	)		24			(26	)
Total other comprehensive earnings (losses)		53			(87	)		56			(161	)
Comprehensive earnings		328			173			540			272
Less: Comprehensive earnings attributable to noncontrolling interest		8			13			16			23
Comprehensive earnings attributable to TRW	$	320		$	160		$	524		$	249

See accompanying notes to unaudited condensed consolidated financial statements.

3

TRW Automotive Holdings Corp.

Condensed Consolidated Balance Sheets

	As of
	June 27, 2014			December 31, 2013
	(Unaudited)
	(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	931		$	1,729
Accounts receivable—net		3,078			2,478
Inventories		1,119			1,019
Prepaid expenses and other current assets		473			402
Total current assets		5,601			5,628
Property, plant and equipment—net of accumulated depreciation of $4,603 and $4,420, respectively		2,734			2,718
Goodwill		1,759			1,760
Intangible assets—net		289			292
Pension assets		1,189			1,059
Other assets		861			795
Total assets	$	12,433		$	12,252
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	$	406		$	159
Current portion of long-term debt		37			482
Trade accounts payable		2,729			2,597
Accrued compensation		277			285
Other current liabilities		1,308			1,232
Total current liabilities		4,757			4,755
Long-term debt		1,449			1,473
Postretirement benefits other than pensions		369			375
Pension benefits		654			676
Other long-term liabilities		665			577
Total liabilities		7,894			7,856
Commitments and contingencies
Stockholders' equity:
Capital stock		1			1
Paid-in-capital		1,641			1,715
Retained earnings		3,002			2,858
Accumulated other comprehensive losses		(320	)		(380	)
Total TRW stockholders' equity		4,324			4,194
Noncontrolling interest		215			202
Total equity		4,539			4,396
Total liabilities and equity	$	12,433		$	12,252

See accompanying notes to unaudited condensed consolidated financial statements.

4

TRW Automotive Holdings Corp.

Condensed Consolidated Statements of Cash Flows

	Six Months Ended
	June 27, 2014			June 28, 2013
	(Unaudited)
	(Dollars in millions)
Operating Activities
Net earnings	$	484		$	433
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		220			212
Net pension and other postretirement benefits income and contributions		(112	)		(138	)
Loss on retirement of debt—net		—			5
Asset impairments		12			—
Deferred income taxes		76			82
Other—net		8			25
Changes in assets and liabilities:
Accounts receivable—net		(619	)		(723	)
Inventories		(103	)		(49	)
Trade accounts payable		148			216
Prepaid expenses and other assets		(117	)		(22	)
Other liabilities		77			52
Net cash provided by operating activities		74			93
Investing Activities
Capital expenditures		(236	)		(271	)
Investment in non-consolidated joint venture assets		(6	)		—
Net cash used in investing activities		(242	)		(271	)
Financing Activities
Change in short-term debt		251			20
Proceeds from issuance of long-term debt, net of fees		—			482
Redemption of long-term debt		(475	)		(120	)
Proceeds from exercise of stock options		2			19
Repurchase of capital stock		(400	)		(200	)
Dividends paid to noncontrolling stockholders		(3	)		(15	)
Net cash (used in) provided by financing activities		(625	)		186
Effect of exchange rate changes on cash		(5	)		(17	)
Decrease in cash and cash equivalents		(798	)		(9	)
Cash and cash equivalents at beginning of period		1,729			1,223
Cash and cash equivalents at end of period	$	931		$	1,214

See accompanying notes to unaudited condensed consolidated financial statements.

5

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements

1. Description of Business

        TRW Automotive Holdings Corp. (also referred to herein as the "Company") is among the world's largest and most diversified suppliers of automotive systems, modules and components to global automotive original equipment manufacturers ("OEMs") and related aftermarkets. The Company conducts substantially all of its operations through subsidiaries. These operations primarily encompass the design, manufacture and sale of active and passive safety related products and systems. Active safety related products and systems principally refer to vehicle dynamic controls (primarily braking and steering), and passive safety related products and systems principally refer to occupant restraints (primarily airbags and seat belts) and safety electronics (primarily electronic control units and crash and occupant weight sensors). The Company is primarily a "Tier 1" supplier (a supplier that sells to OEMs). In 2013, approximately 83% of the Company's end-customer sales were to major OEMs.

2. Basis of Presentation

        These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission ("SEC") on February 14, 2014.

        These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles ("GAAP") for complete financial statements. These financial statements include all adjustments (consisting primarily of normal, recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company. Operating results for the three and six months ended June 27, 2014 are not necessarily indicative of results that may be expected for the year ending December 31, 2014.

        The Company follows a fiscal calendar that ends on December 31. However, each fiscal quarter has three periods consisting of one five week period and two four week periods. Each quarterly period ends on a Friday, with the possible exception of the final quarter of the year, which always ends on December 31.

        Earnings Per Share.    Basic earnings per share are calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share reflect the weighted average impact of all potentially dilutive securities from the date of issuance, including stock options, restricted stock units ("RSUs"), stock-settled stock appreciation rights ("SSARs") and performance stock units ("Performance Units"). Further, if the inclusion of shares potentially issuable for the Company's 3.50% exchangeable senior unsecured notes (see Note 10) is more dilutive than the inclusion of the interest expense for those exchangeable notes, the Company utilizes the "if-converted" method to calculate diluted earnings per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense and amortization of the discount recognized on the exchangeable notes and includes the number of shares potentially issuable related to the exchangeable notes in the weighted average shares outstanding.

        If the average market price of the Company's common stock exceeds the exercise price of stock options outstanding or the fair value on the date of grant of the SSARs, the treasury stock method is

6

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

2. Basis of Presentation (Continued)

used to determine the incremental number of shares to be included in the diluted earnings per share computation.

        Net earnings attributable to TRW and the weighted average shares outstanding used in calculating basic and diluted earnings per share were:

	Three Months Ended				Six Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
	(In millions, except per share amounts)
Net earnings attributable to TRW	$	265	$	248	$	464	$	410
Interest expense on exchangeable notes, net of tax		1		1		2		2
Amortization of discount on exchangeable notes, net of tax		1		1		2		2
Net earnings attributable to TRW for purposes of calculating diluted earnings per share	$	267	$	250	$	468	$	414
Basic:
Weighted average shares outstanding		110.8		118.9		112.0		119.2
Basic earnings per share	$	2.39	$	2.09	$	4.14	$	3.44
Diluted:
Weighted average shares outstanding		110.8		118.9		112.0		119.2
Effect of dilutive stock options, RSUs and SSARs		1.6		1.0		1.6		1.2
Shares applicable to exchangeable notes		5.0		5.9		5.0		5.9
Diluted weighted average shares outstanding		117.4		125.8		118.6		126.3
Diluted earnings per share	$	2.27	$	1.99	$	3.95	$	3.28

        For both the three and six months ended June 27, 2014, approximately 1 million securities were excluded from the calculation of diluted earnings per share because the inclusion of such securities in the calculation would have been anti-dilutive.

        For both the three and six months ended June 28, 2013, approximately 1.6 million securities were excluded from the calculation of diluted earnings per share because the inclusion of such securities in the calculation would have been anti-dilutive.

7

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

2. Basis of Presentation (Continued)

        Equity.    The following tables present a rollforward of the changes in equity attributable to TRW shareholders and to the noncontrolling interest.

	Three Months Ended
	June 27, 2014							June 28, 2013
	Total		TRW Shareholders		Noncontrolling Interest			Total			TRW Shareholders			Noncontrolling Interest
	(Dollars in millions)
Beginning balance of equity	$	4,198	$	3,991	$	207		$	3,870		$	3,671		$	199
Net earnings		275		265		10			260			248			12
Other comprehensive earnings (losses)		53		55		(2	)		(87	)		(88	)		1
Dividends paid to noncontrolling interest		—		—		—			(13	)		—			(13	)
Changes related to share-based compensation		13		13		—			13			13			—
Repurchase of capital stock		—		—		—			(190	)		(190	)		—
Ending balance of equity	$	4,539	$	4,324	$	215		$	3,853		$	3,654		$	199

	Six Months Ended
	June 27, 2014									June 28, 2013
	Total			TRW Shareholders			Noncontrolling Interest			Total			TRW Shareholders			Noncontrolling Interest
	(Dollars in millions)
Beginning balance of equity	$	4,396		$	4,194		$	202		$	3,769		$	3,578		$	191
Net earnings		484			464			20			433			410			23
Other comprehensive earnings (losses)		56			60			(4	)		(161	)		(161	)		—
Dividends paid to noncontrolling interest		(3	)		—			(3	)		(15	)		—			(15	)
Changes related to share-based compensation		6			6			—			27			27			—
Repurchase of capital stock		(400	)		(400	)		—			(200	)		(200	)		—
Ending balance of equity	$	4,539		$	4,324		$	215		$	3,853		$	3,654		$	199

8

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

2. Basis of Presentation (Continued)

        The following tables present changes in accumulated other comprehensive earnings (losses) attributable to TRW by component:

	Foreign Currency Translation			Retirement Obligations			Deferred Cash Flow Hedges			Total
	(Dollars in millions)
For the three months ended June 27, 2014:
Beginning balance attributable to TRW, net of tax	$	43		$	(402	)	$	(16	)	$	(375	)
Other comprehensive earnings (losses) before reclassifications, net of tax		35			(5	)		23			53
Amounts reclassified from accumulated other comprehensive earnings, net of tax		—			1	(a)		1			2
Other comprehensive earnings (losses), net of tax		35			(4	)		24			55
Ending balance attributable to TRW, net of tax	$	78		$	(406	)	$	8		$	(320	)
For the three months ended June 28, 2013:
Beginning balance attributable to TRW, net of tax	$	(3	)	$	(544	)	$	8		$	(539	)
Other comprehensive losses before reclassifications, net of tax		(31	)		(37	)		(23	)		(91	)
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax		—			4	(b)		(1	)		3
Other comprehensive losses, net of tax		(31	)		(33	)		(24	)		(88	)
Ending balance attributable to TRW, net of tax	$	(34	)	$	(577	)	$	(16	)	$	(627	)

(a)

Includes actuarial gains of $5 million, reduced by prior service cost of $3 million, net of tax of $1 million.

(b)

Includes actuarial gains of $10 million, reduced by prior service cost of $4 million, net of tax of $2 million.

9

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

2. Basis of Presentation (Continued)

	Foreign Currency Translation			Retirement Obligations			Deferred Cash Flow Hedges			Total
	(Dollars in millions)
For the six months ended June 27, 2014:
Beginning balance attributable to TRW, net of tax	$	41		$	(405	)	$	(16	)	$	(380	)
Other comprehensive earnings (losses) before reclassifications, net of tax		37			(3	)		20			54
Amounts reclassified from accumulated other comprehensive earnings, net of tax		—			2	(a)		4			6
Other comprehensive earnings (losses), net of tax		37			(1	)		24			60
Ending balance attributable to TRW, net of tax	$	78		$	(406	)	$	8		$	(320	)
For the six months ended June 28, 2013
Beginning balance attributable to TRW, net of tax	$	83		$	(559	)	$	10		$	(466	)
Other comprehensive losses before reclassifications, net of tax		(117	)		(27	)		(25	)		(169	)
Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax		—			9	(b)		(1	)		8
Other comprehensive losses, net of tax		(117	)		(18	)		(26	)		(161	)
Ending balance attributable to TRW, net of tax	$	(34	)	$	(577	)	$	(16	)	$	(627	)

(a)

Includes actuarial gains of $9 million, reduced by prior service cost of $6 million, net of tax of $1 million.

(b)

Includes actuarial gains of $22 million, reduced by prior service cost of $9 million, net of tax of $4 million.

        Warranties.    Product warranty liabilities are recorded based upon management estimates including such factors as the written agreement with the customer, the length of the warranty period, the historical performance of the product and likely changes in performance of newer products and the mix and volume of products sold. Product warranty liabilities are reviewed on a regular basis and adjusted to reflect actual experience.

        The following table presents the movement in the product warranty liability for the periods indicated:

	Six Months Ended
	June 27, 2014			June 28, 2013
	(Dollars in millions)
Beginning balance	$	152		$	140
Current period accruals, net of changes in estimates		21			26
Used for purposes intended		(21	)		(20	)
Effects of foreign currency translation		(2	)		(3	)
Ending balance	$	150		$	143

10

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

2. Basis of Presentation (Continued)

        Recently Adopted Accounting Pronouncements.    In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, discontinued operations and assets held for sale represent a strategic shift that has or will have a major effect on an entity's operations and financial results. The Company adopted this guidance during the second quarter of 2014 and will apply it prospectively to new disposals and new classifications of disposal groups as held for sale. The adoption of this guidance had no impact on the Company's financial statements.

        Recently Issued Accounting Pronouncements.    In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which provides a single revenue recognition model intended to improve comparability over a range of industries, companies and geographical boundaries and is intended to enhance disclosures. The standard is effective retrospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently reviewing the new standard and assessing the potential impact on its operations and financial statements.

3. Inventories

        The major classes of inventory are as follows:

	As of
	June 27, 2014		December 31, 2013
	(Dollars in millions)
Finished products and work in process	$	553	$	499
Raw materials and supplies		566		520
Total inventories	$	1,119	$	1,019

4. Investment in Joint Venture Affiliate

        In the second quarter of 2014, the Company made an initial equity contribution of $6 million in a newly-formed joint venture of which the Company owns a 30% share. This joint venture will construct and operate a casting foundry in order to eventually supply castings to the Company's North American Braking operations through a long-term supply arrangement.

11

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

5. Goodwill and Intangible Assets

Goodwill

        The changes in goodwill for the period are as follows:

	Chassis Systems Segment		Occupant Safety Systems Segment			Electronics Segment		Automotive Components Segment		Total
	(Dollars in millions)
Balance as of December 31, 2013	$	1,071	$	541		$	148	$	—	$	1,760
Effects of foreign currency translation		—		(1	)		—		—		(1	)
Balance as of June 27, 2014	$	1,071	$	540		$	148	$	—	$	1,759

Intangible assets

        The following table reflects intangible assets and related accumulated amortization:

	As of June 27, 2014							As of December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Dollars in millions)
Definite-lived intangible assets:
Developed technology and other intangible assets	$	118		(93	)	$	25	$	119	$	(91	)	$	28
Indefinite-lived intangible assets:
Trademarks		264					264		264					264
Total	$	382				$	289	$	383				$	292

        The Company expects that ongoing amortization expense will approximate the following:

	(Dollars in millions)
Remainder of 2014	$	2
Fiscal year 2015		3
2016 and beyond		20

        The expected amortization expense for 2016 and beyond primarily relates to land use rights.

12

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

6. Other Expense (Income)—Net

        The following table provides details of other expense (income)—net:

	Three Months Ended						Six Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
	(Dollars in millions)
Net provision for bad debts	$	3		$	—		$	4		$	2
Net gains on sales of assets and divestitures		—			—			—			(1	)
Foreign currency exchange losses		5			8			13			6
Royalty and grant income		(6	)		(5	)		(9	)		(6	)
Miscellaneous other expense (income)		7			(5	)		7			(7	)
Other expense (income)—net	$	9		$	(2	)	$	15		$	(6	)

7. Income Taxes

        The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.

        Income tax expense for the three months ended June 27, 2014 was $92 million on pre-tax earnings of $367 million and income tax expense for the six months ended June 27, 2014 was $170 million on pre-tax earnings of $654 million. Income tax expense for the three months ended June 28, 2013 was $97 million on pre-tax earnings of $357 million and income tax expense for the six months ended June 28, 2013 was $159 million on pre-tax earnings of $592 million. Income tax expense for the three and six month periods ended June 27, 2014 includes a $6 million net tax benefit related to a favorable ruling and the resolution of various tax matters in foreign jurisdictions. Income tax expense for the three months ended June 28, 2013 includes a net tax benefit of $4 million relating to the resolution of various tax matters in foreign jurisdictions. Income tax expense for the six months ended June 28, 2013 includes a tax benefit of $12 million relating to the enactment of the American Taxpayer Relief Act of 2012 (the "Act"), partially offset by other discrete items, resulting in a net tax benefit of $8 million for the period. The Act was enacted on January 2, 2013 and retroactively reinstated and extended various tax provisions, including the research and development tax credit and the look through rules for controlled foreign corporations. For the periods ended June 27, 2014 and June 28, 2013, the income tax rate varies from the United States statutory income tax rate primarily due to favorable foreign tax rates, holidays, and credits, as well as the effect of the various items noted above.

        The Company operates in multiple jurisdictions throughout the world and the income tax returns of several subsidiaries in various tax jurisdictions are currently under examination. Although it is not possible to predict the timing of the conclusions of all ongoing tax audits with accuracy, it is possible that some or all of these examinations will conclude within the next 12 months. It is also reasonably possible that certain statute of limitations may expire relating to various foreign jurisdictions within the next 12 months. As such, it is possible that a change in the Company's gross unrecognized tax benefits may occur; however, it is not possible to reasonably estimate the potential change in gross unrecognized tax benefits.

13

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

8. Pension Plans and Postretirement Benefits Other Than Pensions

Pension Plans

        The following tables provide the components of net pension (income) cost for the Company's defined benefit pension plans:

	Three Months Ended
	June 27, 2014									June 28, 2013
	U.S.			U.K.			Rest of World			U.S.			U.K.			Rest of World
	(Dollars in millions)
Service cost	$	1		$	—		$	5		$	1		$	—		$	5
Interest cost on projected benefit obligations		10			53			8			10			47			9
Expected return on plan assets		(13	)		(87	)		(4	)		(14	)		(78	)		(5	)
Amortization		2			—			3			6			—			6
Net pension (income) cost	$	—		$	(34	)	$	12		$	3		$	(31	)	$	15

	Six Months Ended
	June 27, 2014									June 28, 2013
	U.S.			U.K.			Rest of World			U.S.			U.K.			Rest of World
	(Dollars in millions)
Service cost	$	1		$	—		$	11		$	1		$	—		$	11
Interest cost on projected benefit obligations		19			105			18			21			94			18
Expected return on plan assets		(25	)		(173	)		(9	)		(29	)		(156	)		(10	)
Amortization		4			—			6			13			—			10
Net pension (income) cost	$	(1	)	$	(68	)	$	26		$	6		$	(62	)	$	29

Postretirement Benefits Other Than Pensions ("OPEB")

        The following tables provide the components of net OPEB cost (income) for the Company's plans:

	Three Months Ended
	June 27, 2014						June 28, 2013
	U.S.			Rest of World			U.S.			Rest of World
	(Dollars in millions)
Interest cost on projected benefit obligations	$	4		$	1		$	4		$	1
Amortization		(3	)		(1	)		(3	)		(2	)
Settlement		—			—			(2	)		—
Net OPEB cost (income)	$	1		$	—		$	(1	)	$	(1	)

14

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

8. Pension Plans and Postretirement Benefits Other Than Pensions (Continued)

	Six Months Ended
	June 27, 2014						June 28, 2013
	U.S.			Rest of World			U.S.			Rest of World
	(Dollars in millions)
Interest cost on projected benefit obligations	$	8		$	2		$	7		$	2
Amortization		(5	)		(3	)		(7	)		(2	)
Settlement		—			—			(6	)		—
Net OPEB cost (income)	$	3		$	(1	)	$	(6	)	$	—

9. Fair Value Measurements and Financial Instruments

        The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. This hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs, as follows:

Level 1.    Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2.    Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly.

Level 3.    Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the Company's best assumptions of how market participants would price the assets or liabilities.

Items Measured at Fair Value on a Recurring Basis

        The fair value measurements for assets and liabilities recognized in the Company's condensed consolidated balance sheets are as follows:

	As of
	June 27, 2014		December 31, 2013		Measurement Approach
	(Dollars in millions)
Foreign currency exchange contracts—current assets	$	12	$	6	Level 2
Foreign currency exchange contracts—noncurrent assets		10		—	Level 2
Foreign currency exchange contracts—current liability		3		5	Level 2
Foreign currency exchange contracts—noncurrent liability		1		9	Level 2

        The Company's foreign currency exchange contracts are recorded at fair value derived principally from or corroborated by observable market data under the market approach. Inputs include quoted prices for similar assets and liabilities (risk adjusted), and market-corroborated inputs, such as market comparables, interest rates, yield curves and other items that allow value to be determined. The Company uses quoted currency forward rates to calculate forward values, and then discounts the forward values. In addition, the Company's calculation of the fair value of its foreign currency option contracts uses quoted currency volatilities.

15

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

9. Fair Value Measurements and Financial Instruments (Continued)

        The discount rates for all derivative contracts are based on quoted bank deposit. For contracts which, when aggregated by counterparty, are in a liability position, the rates are adjusted by the credit spread which market participants would apply if buying these contracts from the Company's counterparties.

        There were no changes in the Company's valuation techniques during the six months ended June 27, 2014.

Items Measured at Fair Value on a Nonrecurring Basis

        In addition to items that are measured at fair value on a recurring basis, we also have assets that may be measured at fair value on a nonrecurring basis. These assets include long-lived assets, intangible assets and investments in affiliates, which may be written down to fair value as a result of impairment.

        The Company has determined that the fair value measurements related to each of these assets rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets, as observable inputs are not available. As such, the Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the useful life of the long-lived assets by using a risk-adjusted rate for the Company. For the six months ended June 27, 2014, the Company recorded asset impairments of $12 million associated with its determination of the fair value of its long-lived assets that exhibited indicators of impairment (see Note 11).

Financial Instruments Not Carried at Fair Value

        The carrying value and estimated fair value of financial instruments that are not carried on the Company's balance sheet at fair value are as follows:

	As of
	June 27, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value		Measurement Approach
	(Dollars in millions)
Short-term debt, fixed and floating rate	$	406	$	406	$	159	$	159	Level 2
Fixed rate long-term debt	$	1,349	$	1,466	$	1,821	$	1,884	Level 2
Fixed rate exchangeable notes	$	137	$	448	$	134	$	375	Level 2

        The carrying value of short-term debt approximates fair value because of the short term nature of these instruments. The fair value of long term debt was determined primarily from quoted market prices, as provided by participants in the secondary marketplace. For long-term debt without a quoted market price, the Company estimates the fair value using discounted cash flow models with market based borrowing rates for similar types of arrangements.

Derivative Instruments and Hedging Activities

        The Company is exposed to fluctuations in foreign currency exchange rates, interest rates and commodity prices. The Company enters into derivative instruments primarily to hedge portions of its forecasted foreign currency denominated cash flows and designates these derivative instruments as cash

16

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

9. Fair Value Measurements and Financial Instruments (Continued)

flow hedges in order to qualify for hedge accounting. Certain foreign exchange contracts that do not qualify for hedge accounting are entered into to hedge recognized foreign currency transactions. All gains or losses on derivative instruments which are not designated for hedge accounting treatment or do not qualify for hedge accounting, or result from hedge ineffectiveness, are reported in earnings immediately.

        In addition, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the derivative financial instruments. The Company attempts to limit this exposure by entering into agreements directly with a number of major financial institutions that meet the Company's credit standards and that are expected to fully satisfy their obligations under the contracts, and by monitoring the Company's credit exposure to each counterparty in light of its current credit quality.

        As of June 27, 2014, the Company had a notional value of $2.6 billion in foreign exchange contracts outstanding. These foreign exchange contracts mature at various dates through May 2017.

        Cash Flow Hedges.    For any derivative instrument that is designated and qualifies as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of Other Comprehensive Income ("OCI"), and is subsequently reclassified into earnings in the period which the hedged transaction affects earnings. The earnings impact is reported either in sales, cost of sales, or other expense (income)—net, to match the underlying transaction. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, which were immaterial for each of the three and six month periods ended June 27, 2014 and June 28, 2013, are recognized in other expense (income)—net.

        The effective portion of gains and losses on derivatives designated as cash flow hedges and recognized in OCI was a gain of $28 million and $25 million for the three and six month periods ended June 27, 2014, respectively, compared to a loss of $33 million for both the three and six month periods ended June 28, 2013, all of which were related to foreign currency exchange contracts.

        The effective portion of gains and losses on cash flow hedges reclassified from OCI into the statement of earnings for the three and six month periods ended June 27, 2014 was a loss of $2 million and loss of $5 million, respectively, and was included in various line items on the statement of earnings, compared to a gain of $1 million for both the three and six month periods ended June 28, 2013.

        Gains and losses reclassified into earnings include the discontinuance of cash flow hedges, which were immaterial for each of the three and six months ended June 27, 2014 and June 28, 2013. Approximately $4 million of gains, net of tax, which are included in OCI, are expected to be reclassified into earnings in the next twelve months.

        Undesignated Derivatives.    For the three and six months ended June 27, 2014, the Company recognized losses of $4 million and $3 million, respectively, in other expense (income)—net, for derivative instruments not designated as hedging instruments. For the three and six months ended June 28, 2013, the Company recognized losses of $2 million and $3 million, respectively, in other expense (income)—net, for derivative instruments not designated as hedging instruments.

        Credit-Risk-Related Contingent Features.    The Company has entered into International Swaps and Derivatives Association ("ISDA") agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with

17

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

9. Fair Value Measurements and Financial Instruments (Continued)

those that are in an asset position. These agreements do not require the Company to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position.

Offsetting of Derivative Assets and Liabilities

        The following table reflects the offsetting of derivative assets and liabilities:

	As of June 27, 2014							As of December 31, 2013
	Gross Amounts Recognized		Gross Amounts Offset			Net Amounts Reported		Gross Amounts Recognized		Gross Amounts Offset			Net Amounts Reported
	(Dollars in millions)
Derivative Assets:
Foreign Currency	$	54	$	(32	)	$	22	$	42	$	(36	)	$	6
Derivative Liabilities:
Foreign Currency		36		(32	)		4		50		(36	)		14

10. Debt

        Total outstanding debt of the Company consisted of the following:

	As of
	June 27, 2014		December 31, 2013
	(Dollars in millions)
Short-term debt	$	406	$	159
Long-term debt:
6.375% Senior Notes, due 2014	$	—	$	234
7.00% Senior Notes, due 2014		—		233
7.25% Senior Notes, due 2017		445		446
4.50% Senior Notes, due 2021		400		400
4.45% Senior Notes, due 2023		400		400
Exchangeable senior notes, due 2015		137		134
Revolving credit facility		—		—
Capitalized leases		17		18
Other long-term borrowings		87		90
Total long-term debt		1,486		1,955
Less current portion		37		482
Long-term debt, net of current portion	$	1,449	$	1,473

18

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

10. Debt (Continued)

Senior Notes

        4.45% Senior Notes.    In November 2013, the Company issued $400 million in aggregate principal amount of 4.45% senior unsecured notes due 2023 in a private placement. Interest is payable semi-annually on December 1 and June 1 of each year.

        4.50% Senior Notes.    In February 2013, the Company issued $400 million in aggregate principal amount of 4.50% senior unsecured notes due 2021 in a private placement. Interest is payable semi-annually on March 1 and September 1 of each year.

        7.25% Senior Notes.    In March 2007, the Company issued $600 million in aggregate principal amount of 7.25% senior unsecured notes due 2017 in a private placement. Interest is payable semi-annually on March 15 and September 15 of each year.

        6.375% Senior Notes and 7.00% Senior Notes Issued in 2007.    On March 15, 2014, the 6.375% Senior Notes and 7.00% Senior Notes matured and the Company paid the principal amounts outstanding of €170 million and $233 million, respectively.

Exchangeable Senior Notes

        In November 2009, the Company issued approximately $259 million in aggregate principal amount of 3.50% exchangeable senior unsecured notes due 2015 (the "Exchangeable Senior Notes") in a private placement. Prior to September 1, 2015, the notes are exchangeable only upon specified events or conditions being met and, thereafter, at any time. One condition was met as of June 27, 2014, and as such, the notes are exchangeable in the third quarter of 2014. They will remain exchangeable in subsequent quarters if the condition continues to be met, which occurs if the last reported sale price of the Company's common stock for at least 20 of the last 30 trading days of the immediately preceding quarter is greater than $38.415, subject to adjustment. The initial exchange rate is 33.8392 shares of the Company's common stock per $1,000 principal amount of notes. The Company's exchange obligation may be settled, at its option, in shares of its stock, cash or a combination of cash and shares of its stock. Interest is payable on June 1 and December 1 of each year. The Exchangeable Senior Notes will mature on December 1, 2015, unless earlier exchanged, repurchased by the Company at the holder's option upon a fundamental change, or optionally redeemed by the Company as provided in the indenture.

        The Exchangeable Senior Notes were recorded with a debt discount which decreased debt and increased paid-in-capital in order to separate the liability and embedded equity components. The debt component will accrete up to the principal amount to effectively yield 9.0% over the term of the debt. The debt discount as of June 27, 2014 and December 31, 2013 was $11 million and $14 million, respectively. The total interest expense recognized for the three and six months ended June 27, 2014 was approximately $3 million and $6 million, respectively, including $2 million and $3 million in each respective period relating to the stated coupon rate. The total interest expense recognized for the three and six months ended June 28, 2013 was approximately $4 million and $7 million, respectively, including $2 million and $3 million in each respective period relating to the stated coupon rate.

19

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

10. Debt (Continued)

Senior Credit Facilities

        The Company's Eighth Amended and Restated Credit Agreement dated September 28, 2012 (the "Eighth Credit Agreement") provides for senior credit facilities consisting of (i) a revolving credit facility in the amount of $1.4 billion which matures in September 2017, subject to certain liquidity conditions being met in October 2016 (the "Revolving Credit Facility"), and (ii) additional availability which may be used in the future for one or more term loans or additional revolving facilities (together with the Revolving Credit Facility, the "Facilities"). All of the Facilities are undrawn.

        The commitment fee and the applicable margin for borrowing on the Revolving Credit Facility are subject to a ratings-based grid. The applicable margin in effect as of June 27, 2014 was 0.25% with respect to base rate borrowings, 1.25% with respect to eurocurrency borrowings, and the commitment fee on the undrawn amounts under the Revolving Credit Facility was 0.25%.

Debt Repurchases

        As market conditions warrant, the Company may from time to time repurchase debt securities, including exchangeable debt securities, issued by the Company or its subsidiaries, in privately negotiated or open market transactions, by tender offer, exchange offer, or by other means, or the Company may optionally redeem such debt securities.

Other Borrowings

        The Company has borrowings under uncommitted credit agreements in several of the countries in which it operates. The borrowings are from various individual banks at quoted market interest rates. As of June 27, 2014, the Company had short-term borrowings under uncommitted credit facilities totaling $397 million.

20

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

11. Restructuring Charges and Asset Impairments

        Restructuring charges and asset impairments incurred as part of the Company's ongoing effort to better align the Company's cost structure with global automotive market conditions, primarily in the European and North American automotive markets, include the following:

	Chassis Systems Segment		Occupant Safety Systems Segment		Electronics Segment		Automotive Components Segment			Corporate		Total
	(Dollars in millions)
For the three months ended June 27, 2014:
Severance and other charges—net	$	3	$	2	$	—	$	1		$	—	$	6
Total restructuring charges and asset impairments	$	3	$	2	$	—	$	1		$	—	$	6
For the three months ended June 28, 2013:
Severance and other charges	$	1	$	—	$	—	$	—		$	—	$	1
Total restructuring charges and asset impairments	$	1	$	—	$	—	$	—		$	—	$	1
For the six months ended June 27, 2014:
Severance and other charges—net	$	10	$	2	$	—	$	2		$	—	$	14
Asset impairments related to restructuring activities		12		—		—		—			—		12
Total restructuring charges and asset impairments	$	22	$	2	$	—	$	2		$	—	$	26
For the six months ended June 28, 2013:
Severance and other charges	$	17	$	27	$	—	$	(6	)	$	—	$	38
Total restructuring charges and asset impairments	$	17	$	27	$	—	$	(6	)	$	—	$	38

Restructuring Reserves

        The following table illustrates the movement of the restructuring reserves for severance and other charges, including reserves related to severance-related postemployment benefits for both periods presented:

	Six Months Ended
	June 27, 2014			June 28, 2013
	(Dollars in millions)
Beginning balance	$	88		$	121
Current period accruals, net of changes in estimates		14			38
Used for purposes intended		(34	)		(43	)
Effects of foreign currency translation		(1	)		(1	)
Ending balance	$	67		$	115

21

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

11. Restructuring Charges and Asset Impairments (Continued)

        Of the $67 million restructuring reserves as of June 27, 2014, approximately $40 million is expected to be paid in the remainder of 2014. The remaining balance is expected to be paid in 2015 to 2016 and is comprised primarily of involuntary employee termination arrangements in Europe.

12. Capital Stock

        The Company's authorized capital stock consists of (i) 500 million shares of common stock, par value $.01 per share (the "Common Stock"), of which 110,884,083 shares were issued and outstanding as of June 27, 2014, net of 4,668 shares of treasury stock withheld at cost to satisfy tax obligations for a specific grant under the Company's stock-based compensation plan; and (ii) 250 million shares of preferred stock, par value $.01 per share, including 500,000 shares of Series A junior participating preferred stock, of which no shares are currently issued or outstanding.

        From time to time, capital stock is issued in conjunction with the exercise of stock options and stock-settled stock appreciation rights and the vesting of restricted stock units issued as part of the Company's stock incentive plan (see Note 13).

        Share Repurchase Programs.    The Company has two share repurchase programs in place, consisting of a $2 billion program that extends through December 31, 2016 (the "$2 Billion Program"), and a program that is intended to offset, on an ongoing basis, the dilution created by the Company's stock incentive plan for up to 1.5 million shares in 2014 and each subsequent year (the "Anti-Dilution Program"). The Anti-Dilution program does not have an expiration date. The Company is not obligated to repurchase any shares under either program.

        In the first quarter of 2014, the Company entered into an accelerated share repurchase ("ASR") agreement with a third-party financial institution to repurchase the Company's common stock. Under the ASR agreement, the Company made an up-front payment of $400 million and received an initial delivery of approximately 3.9 million shares in the first quarter of 2014. The total number of shares to be ultimately delivered, and therefore the average price paid per share, will be determined at the end of the repurchase period based on the volume weighted average price of the Company's common stock during that period. The ASR is expected be completed by the end of the third quarter of 2014.

13. Share-Based Compensation

Equity Awards

        On February 21, 2014, the Company granted 850,900 SSARs to executive officers and certain employees of the Company pursuant to the TRW Automotive Holdings Corp. 2012 Stock Incentive Plan (the "2012 Plan"). Each SSAR entitles the grantee to receive the appreciation in value of one underlying share of the Company's stock from the grant date fair market value of $82.50 to the fair market value on the exercise date, although the stock price at exercise is limited to a maximum value of $130.00.

        On February 21, 2014, the Company also granted 284,723 RSUs to executive officers and certain employees of the Company pursuant to the 2012 Plan and 3,365 phantom stock units ("PSUs") to certain other employees of the Company. Each PSU entitles the grantee to receive a cash payment upon vesting equal to the fair market value on the vesting date of one share of the Company's common stock.

22

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

13. Share-Based Compensation (Continued)

        In addition, on February 21, 2014, the Company granted 46,949 Performance Units to executive officers. The number of Performance Units that will be earned will be based on the Company's achievement of total shareholder return ("TSR") over a three-year period relative to automotive parts companies within the Russell 3000 Index, and the number of units can vary from 0% to 150% of the target award amount. The three-year performance period ends on December 31, 2016, and any Performance Units earned will be settled in shares of the Company's common stock.

        On May 13, 2014, the Company granted 14,742 RSUs to independent directors of the Company pursuant to the 2012 Plan.

        As of June 27, 2014, the Company had 3,349,736 shares of Common Stock available for issuance under the 2012 Plan. In addition, 252,197 stock options, 3,618,952 SSARs, 693,699 nonvested RSUs, 12,650 nonvested PSUs and 46,949 nonvested Performance Units were outstanding as of June 27, 2014. All of the SSARs and stock options have an 8-year term and vest ratably over three years, substantially all of the RSUs vest ratably over three years and a majority of the PSUs cliff vest after three years. As a result of changes to retirement provisions in the equity award agreements beginning in 2013, the Company applies a non-substantive vesting period approach for certain of the awards granted in 2014 and 2013 whereby expense is accelerated for those employees who receive awards and are eligible to retire prior to the award vesting.

        Share-based compensation expense recognized for the Plan was as follows:

	Three Months Ended				Six Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
	(Dollars in millions)
Stock options and SSARs	$	3	$	4	$	5	$	6
RSUs		7		6		12		15
Performance Units		1		—		2		—
Total share-based compensation expense	$	11	$	10	$	19	$	21

14. Contingencies

        Various claims, lawsuits and administrative proceedings are pending or threatened against the Company or its subsidiaries, covering a wide range of matters that arise in the ordinary course of the Company's business activities with respect to commercial, patent, product liability, environmental and occupational safety and health law matters. In addition, the Company and its subsidiaries are conducting a number of environmental investigations and remedial actions at current and former locations of certain of the Company's subsidiaries. Along with other companies, certain subsidiaries of the Company have been named potentially responsible parties for certain waste management sites. Each of these matters is subject to various uncertainties, and some of these matters may be resolved unfavorably with respect to the Company or the relevant subsidiary. A reserve estimate for each environmental matter is established using standard engineering cost estimating techniques on an undiscounted basis. In the determination of such costs, consideration is given to the professional judgment of Company environmental engineers, in consultation with outside environmental specialists,

23

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

14. Contingencies (Continued)

when necessary. At multi-party sites, the reserve estimate also reflects the expected allocation of total project costs among the various potentially responsible parties.

        As of June 27, 2014, the Company had reserves for environmental matters of $73 million. In addition, the Company has established a receivable for a portion of this environmental liability as a result of its right to indemnification for 50% of any environmental liabilities associated with the operation or ownership of the Company's automotive business existing at or prior to March 2003. The Company believes any liability, in excess of amounts accrued in its financial statements, that may result from the resolution of environmental matters for which sufficient information is available to support these cost estimates, will not have a material adverse effect on the Company's financial position, results of operations or cash flows.

        The Company faces an inherent business risk of exposure to product liability, recall and warranty claims in the event that its products actually or allegedly fail to perform as expected or the use of its products results, or is alleged to result, in bodily injury and/or property damage. Accordingly, the Company could experience material warranty, recall or product liability losses in the future. For further information, including quantification of the Company's product warranty liability, see the description of "Warranties" in Note 2.

        While certain of the Company's subsidiaries have been subject in recent years to asbestos-related claims, management believes that such claims will not have a material adverse effect on the Company's financial statements. In general, these claims seek damages for illnesses alleged to have resulted from exposure to asbestos used in certain components sold in the past by the Company's subsidiaries. Management believes that the majority of the claimants were vehicle mechanics. The vast majority of these claims name as defendants numerous manufacturers and suppliers of a variety of products allegedly containing asbestos. Management believes that, to the extent any of the products sold by the Company's subsidiaries and at issue in these cases contained asbestos, the asbestos was encapsulated. Based upon several years of experience with such claims, management believes that only a small proportion of the claimants has or will ever develop any asbestos-related illness.

        Neither settlement costs in connection with asbestos claims nor annual legal fees to defend these claims have been material in the past. These claims are strongly disputed by the Company and it has been its policy to defend against them aggressively. Many of these cases have been dismissed without any payment whatsoever. Moreover, there is significant insurance coverage with solvent carriers with respect to these claims. However, while costs to defend and settle these claims in the past have not been material, there can be no assurances that this will remain so in the future.

        Management believes that the ultimate resolution of the foregoing contingencies will not have a material effect on the Company's financial statements as a whole.

Antitrust Matters

        Antitrust authorities, including those in the United States and Europe, are investigating possible violations of competition (antitrust) laws by automotive parts suppliers (referred to herein as the "Antitrust Investigations"). The U.S. Department of Justice ("DOJ") initiated an investigation into the Company's Occupant Safety Systems business in June 2011, which was concluded in 2012 when the court approved a plea agreement between one of the Company's German subsidiaries and the DOJ. Also in June 2011, the European Commission initiated an Antitrust Investigation which includes the

24

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

14. Contingencies (Continued)

Company, among others, and which is ongoing. While the duration and outcome of the European Commission's investigation is uncertain, a determination that the Company has violated European competition (antitrust) laws could result in significant penalties which could have a material adverse effect on its financial condition, results of operations and cash flows, as well as its reputation. While the Company cannot estimate the ultimate financial impact resulting from the European investigation, it will continue to evaluate developments in this matter on a regular basis and will record an accrual as and when appropriate.

        The Company's policy is to comply with all laws and regulations, including all antitrust and competition laws. The Company is cooperating fully with the competition authorities in the context of their ongoing investigations.

        The Company has settled, for an amount that is immaterial to the Company, certain purported class action lawsuits filed on behalf of vehicle purchasers, lessors and dealers, alleging that the Company and certain of its competitors conspired to fix and raise prices for Occupant Safety Systems products. These lawsuits were filed on various dates from June 2012 through July 2013 and were consolidated in the United States District Court for the Eastern District of Michigan. Once the court approves the settlements, those cases will be dismissed. Class action lawsuits filed against the Company on various dates from June 2012 through May 2014 in the United States District Court for the Eastern District of Michigan on behalf of direct purchasers and in various courts in Canada on behalf of vehicle purchasers, lessors, dealers and direct purchasers remain pending, which the Company intends to vigorously defend. Management believes that the ultimate resolution of those cases will not have a material adverse effect on the Company's financial condition, results of operations or cash flows.

25

TRW Automotive Holdings Corp.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

15. Segment Information

        The following tables present certain financial information by segment:

	Three Months Ended						Six Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
	(Dollars in millions)
Sales to external customers:
Chassis Systems	$	2,954		$	2,985		$	5,825		$	5,710
Occupant Safety Systems		905			856			1,770			1,700
Electronics		241			184			460			346
Automotive Components		493			489			980			971
Total sales to external customers	$	4,593		$	4,514		$	9,035		$	8,727
Intersegment sales:
Chassis Systems	$	4		$	4		$	7		$	8
Occupant Safety Systems		38			33			75			66
Electronics		144			142			293			272
Automotive Components		19			19			38			37
Total intersegment sales	$	205		$	198		$	413		$	383
Total segment sales:
Chassis Systems	$	2,958		$	2,989		$	5,832		$	5,718
Occupant Safety Systems		943			889			1,845			1,766
Electronics		385			326			753			618
Automotive Components		512			508			1,018			1,008
Total segment sales	$	4,798		$	4,712		$	9,448		$	9,110
Earnings before taxes:
Chassis Systems	$	243		$	246		$	435		$	412
Occupant Safety Systems		89			80			154			112
Electronics		36			32			72			58
Automotive Components		39			43			82			88
Segment earnings before taxes		407			401			743			670
Corporate expense and other		(24	)		(17	)		(52	)		(32	)
Financing costs		(26	)		(34	)		(57	)		(64	)
Loss on retirement of debt—net		—			(5	)		—			(5	)
Net earnings attributable to noncontrolling interest, net of tax		10			12			20			23
Earnings before income taxes	$	367		$	357		$	654		$	592

        See Note 11 for a summary of restructuring charges and asset impairments by segment.

26

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

        The following should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission on February 14, 2014 (our "2013 Annual Report") and the other information included herein. Our discussion of trends and conditions supplements and updates such discussion included in our 2013 Annual Report. References in this quarterly report on Form 10-Q (this "Report") to "we," "our," or the "Company" refer to TRW Automotive Holdings Corp., together with its subsidiaries.

EXECUTIVE OVERVIEW

Our Business

        We are among the world's largest and most diversified suppliers of automotive systems, modules and components to global automotive original equipment manufacturers, or OEMs, and related aftermarkets. Our operations primarily encompass the design, manufacture and sale of active and passive safety related products and systems, which often includes the integration of electronics components and systems. We operate our business along four segments: Chassis Systems, Occupant Safety Systems, Electronics and Automotive Components.

        We are primarily a "Tier 1" supplier, with approximately 83% of our end-customer sales in 2013 made to major OEMs. Of our 2013 sales, approximately 41% were in Europe, 36% were in North America, 19% were in Asia, and 4% were in the rest of the world.

Financial Results

        For the three months ended June 27, 2014:

•

Our net sales were $4.6 billion, which represents an increase of 2% compared to the prior year period. The higher level of sales was driven by increased demand for our active and passive safety products, growth in vehicle production in our major markets and the positive effects of foreign currency exchange, and was achieved despite the impact of lower sales of $248 million as a result of exiting certain of our brake component and modules businesses in North America.

•

Operating income of $383 million was comparable to $385 million in the prior year period. The positive profit impact of the higher level of sales was offset by planned cost increases to support future growth.

•

Net earnings attributable to TRW were $265 million compared to $248 million in the prior year period. This increase of $17 million was primarily the result of lower interest expense, the non-reoccurrence of a loss on retirement of debt, and lower income tax expense.

        For the six months ended June 27, 2014:

•

Our net sales were $9.0 billion, which represents an increase of over 3% compared to the prior year period. The higher level of sales was driven by increased demand for our active and passive safety products and growth in vehicle production in our major markets and the positive effects of foreign currency exchange, which more than offset the impact of lower sales of $378 million related to exiting certain of our brake component and modules businesses in North America.

•

Operating income was $691 million compared to $638 million in the prior year period. The increase in operating income of $53 million resulted primarily from the positive profit impact of the higher level of sales and lower restructuring charges, partially offset by planned cost increases to support future growth.

27

•

Net earnings attributable to TRW were $464 million compared to $410 million in the prior year period. This increase of $54 million was primarily the result of the increase in operating income, partially offset by higher income tax expense.

Recent Trends and Conditions

        Our business and operating results are directly affected by the relative strength of the global automotive industry, which tends to be driven by macroeconomic factors such as gross domestic product growth, consumer confidence, fluctuating commodity, currency and fuel prices and regulatory/governmental initiatives. The primary trends and market conditions impacting our business in 2014 include:

General Economic Conditions:

        The global automotive industry remains susceptible to uncertain economic conditions that could adversely impact consumer demand for vehicles. Although U.S. economic data suggests the economy is rebounding from weather-related weakness in the first quarter of 2014, global economic sentiment remains cautious given heightened geopolitical uncertainty, as well as continued volatility within the emerging markets, including the slowing pace of economic growth in China.

        During the first half of 2014, while vehicle production levels in our major markets increased, expectations were tempered by geopolitical tension and concerns over global economic growth. In North America, with the economy showing signs of growth, consumer demand appears to support the current level of vehicle production. In Europe, stimulus measures were put in place to prevent the risk of deflation and spur economic growth. In China, while stimulus programs were implemented to stabilize the economy and avert a sharper slowdown, the automotive industry continues to expand with automotive suppliers benefiting from increased production levels.

        In light of increased attention by U.S. regulators, the industry's sensitivity to product performance may be heightened as evidenced by a higher level of product recalls during the first half of 2014. Despite this activity, consumer confidence and demand has not been harmed and production levels remain unaffected.

Production Levels:

        Vehicle production levels in North America, Europe and China during the first half of 2014 continued on a positive trend.

        Approximately 41% of our sales originated in Europe during 2013. This region experienced higher production levels in the first half of 2014 compared to 2013, primarily due to increased European consumer demand as a result of higher consumer confidence and the release of pent-up demand for vehicles. Despite a strong first half, production levels in the near term are expected to be influenced by normal seasonality. We are cautiously optimistic that consumer demand levels will remain steady, however we will continue to monitor the geopolitical concerns that could impact this region.

        Approximately 36% of our sales originated in North America during 2013. Production levels in this region increased in the first half of 2014 compared to 2013. The Detroit Three (defined as Chrysler Group LLC, Ford Motor Company, and General Motors Company, combined) production levels were consistent with overall production levels within North America in the first half of 2014. However, for the remainder of 2014, we expect the Detroit Three to lag behind the overall growth in these production levels. In general, our financial results are more closely correlated to the

28

production by the Detroit Three given our higher sales content to these manufacturers compared to other manufacturers.

        Approximately 23% of our sales originated in regions outside of Europe and North America (primarily China, which comprised approximately 16% of total sales) during 2013. In China, production levels were higher in the first half of 2014 compared to 2013 due to increased consumer demand. We expect growth in production levels for the remainder of 2014 in China. In Brazil, production levels were down 23% compared to the prior year period due to economic volatility in the country. While this market represented 4% of our 2013 sales, we are continuing to monitor the market given the challenging conditions experienced.

Changes to Our Debt and Capital Structure

        During the first half of 2014, we continued to focus on improving the strength, flexibility, and cost efficiency of our capital structure, resulting in outstanding debt of $1.9 billion and a cash balance of $931 million at June 27, 2014. On March 15, 2014, our 6.375% Senior Notes and 7.00% Senior Notes matured and we repaid the outstanding principal amount totaling $469 million. Additionally, during the first half, we increased our borrowings under short-term uncommitted credit lines by $242 million.

        As market conditions warrant, we may, from time to time, repurchase debt, including exchangeable debt securities, securities issued by the Company or its subsidiaries, in privately negotiated or open market transactions, by tender offer, exchange offer, or by other means, or we may optionally redeem such debt securities.

        In connection with our publicly announced share repurchase programs, during the six months ended June 27, 2014, we utilized $400 million of cash on hand and initially received approximately 3.9 million shares of common stock under an accelerated share repurchase ("ASR") program that is expected to be completed by the end of the third quarter of 2014.

        See "LIQUIDITY AND CAPITAL RESOURCES" below, Part II, Item 2 (c), "Issuer repurchases of equity securities," of this Report and Note 10 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for further information.

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RESULTS OF OPERATIONS

        The following unaudited consolidated statements of earnings compare the results of operations for the periods presented as follows:

Total Company Results of Operations

Consolidated Statements of Earnings
(Unaudited)

	Three Months Ended
	June 27, 2014			June 28, 2013			Variance
	(Dollars in millions)
Sales	$	4,593		$	4,514		$	79
Cost of sales		4,026			3,983			43
Gross profit		567			531			36
Administrative and selling expenses		169			147			22
Restructuring charges and asset impairments		6			1			5
Other expense (income)—net		9			(2	)		11
Operating income		383			385			(2	)
Interest expense—net		26			34			(8	)
Loss on retirement of debt—net		—			5			(5	)
Equity in earnings of affiliates, net of tax		(10	)		(11	)		1
Earnings before income taxes		367			357			10
Income tax expense		92			97			(5	)
Net earnings		275			260			15
Less: Net earnings attributable to noncontrolling interest, net of tax		10			12			(2	)
Net earnings attributable to TRW	$	265		$	248		$	17

Sales

        Changes in both vehicle production levels and our sales, by major geographic region, compared to the prior year quarter are presented below:

	Variance
	Vehicle Production(a)			TRW Sales
North America		4	%		(7	)%
Europe		2	%		7	%
Rest of World		2	%		6	%

(a)

Source: Primarily IHS Automotive light vehicle production forecast.

30

Cost of Sales

        Changes in the major components within our cost of sales are presented below:

	(Dollars in millions)
Cost of sales, three months ended June 28, 2013	$	3,983
Material		6
Labor and other		30
Depreciation and amortization		7
Cost of sales, three months ended June 27, 2014	$	4,026

Comparison of the Three Months Ended June 27, 2014 to the Three Months Ended June 28, 2013

Sales increased by $79 million, or 2%, for the three months ended June 27, 2014 compared to the three months ended June 28, 2013. The increase in sales was driven by higher production volume, primarily in North America, Europe and China, and increased demand for our active and passive safety products, together totaling $255 million, and the favorable impact of foreign currency exchange of $72 million, partially offset by lower sales of $248 million as a result of exiting certain of our brake component and modules businesses in North America during the first quarter of 2014.

        For the three months ended June 27, 2014, the change in TRW sales in North America was less than the increase in vehicle production primarily due to exiting certain of our brake component and modules businesses in North America during the first quarter of 2014. Excluding the impact of exiting these businesses, sales increased 10% in North America, which was more than the 4% vehicle production increase in the region due to a favorable concentration of customers and increased demand for our safety products. In Europe, sales were positively impacted by foreign currency exchange. Excluding the impact of foreign currency exchange, the increase in sales in Europe was slightly below the increase in vehicle production in the region due to the mix of platforms and products sold. In the Rest of World, excluding the impact of foreign currency exchange, sales increased 9%, which was higher than the industry production increase of 2% due to a favorable concentration of customers and increased demand for our safety products.

Cost of sales increased by $43 million, or 1%, for the three months ended June 27, 2014 compared to the three months ended June 28, 2013. The increase was driven primarily by additional costs associated with increased volume (net of cost reductions) of $199 million, as well as the unfavorable impact of foreign currency exchange of $65 million, partially offset by lower cost of sales of $221 million as a result of exiting certain of our brake component and modules businesses in North America.

Gross profit, as a percentage of sales, for the three months ended June 27, 2014 was 12.3% compared to 11.8% for the three months ended June 28, 2013. This margin improvement was primarily driven by the favorable profit impact of additional volume, as well as cost reductions.

        Gross profit increased by $36 million for the three months ended June 27, 2014 compared to the three months ended June 28, 2013. The increase was primarily driven by the favorable impact of higher volume (including the benefit of an increased proportion of higher margin business) of $70 million and the favorable impact of foreign currency exchange of $7 million, partially offset by the reduction in profit of $27 million as a result of exiting certain of our brake component and modules businesses in North America and increased non-commodity inflation, engineering, salary and other cost increases totaling $14 million.

Administrative and selling expenses, as a percentage of sales, were 3.7% for the three months ended June 27, 2014 compared to 3.3% for the three months ended June 28, 2013. The increase of $22 million was driven by higher salary and other compensation costs of $10 million, increased

31

non-commodity inflation and other expenses of $9 million, and the unfavorable impact of foreign currency exchange of $3 million.

Restructuring charges and asset impairments were $6 million for the three months ended June 27, 2014 compared to $1 million for the three months ended June 28, 2013. This increase was driven by higher severance and other charges.

Other expense (income)—net increased by $11 million for the three months ended June 27, 2014 compared to the three months ended June 28, 2013. This increase in expense is primarily driven by $7 million related to certain legal matters and increased bad debt expense of $3 million.

Interest expense—net decreased by $8 million for the three months ended June 27, 2014 compared to the three months ended June 28, 2013. The decrease was primarily a result of both lower average debt levels and lower average borrowing rates of our senior notes.

Loss on retirement of debt—net was $5 million for the three month period ended June 28, 2013. During the three month period ended June 28, 2013, we repurchased portions of our senior unsecured notes due in 2014 and 2017 totaling $91 million in principal amount and recorded a loss on retirement of debt of $5 million including the write-off of a portion of debt issue costs, discounts and premiums.

Income tax expense for the three months ended June 27, 2014 was $92 million on pre-tax earnings of $367 million compared to an income tax expense of $97 million on pre-tax earnings of $357 million for the three months ended June 28, 2013.

Consolidated Statements of Earnings
(Unaudited)

	Six Months Ended
	June 27, 2014			June 28, 2013			Variance
	(Dollars in millions)
Sales	$	9,035		$	8,727		$	308
Cost of sales		7,968			7,769			199
Gross profit		1,067			958			109
Administrative and selling expenses		335			288			47
Restructuring charges and asset impairments		26			38			(12	)
Other expense (income)—net		15			(6	)		21
Operating income		691			638			53
Interest expense—net		57			64			(7	)
Loss on retirement of debt—net		—			5			(5	)
Equity in earnings of affiliates, net of tax		(20	)		(23	)		3
Earnings before income taxes		654			592			62
Income tax expense		170			159			11
Net earnings		484			433			51
Less: Net earnings attributable to noncontrolling interest, net of tax		20			23			(3	)
Net earnings attributable to TRW	$	464		$	410		$	54

32

Sales

        Changes in both vehicle production levels and our sales, by major geographic region, compared to the prior year period are presented below:

	Variance
	Vehicle Production(a)			TRW Sales
North America		4	%		(4	)%
Europe		5	%		8	%
Rest of World		3	%		7	%

(a)

Source: Primarily IHS Automotive light vehicle production forecast.

Cost of Sales

        Changes in the major components within our cost of sales are presented below:

	(Dollars in millions)
Cost of sales, six months ended June 28, 2013	$	7,769
Material		128
Labor and other		58
Depreciation and amortization		13
Cost of sales, six months ended June 27, 2014	$	7,968

Comparison of the Six Months Ended June 27, 2014 to the Six Months Ended June 28, 2013

Sales increased by $308 million, or 4%, for the six months ended June 27, 2014 compared to the six months ended June 28, 2013. The increase in sales was driven by higher production volume, primarily in North America, Europe and China, and increased demand for our active and passive safety products, together totaling $566 million, and the favorable impact of foreign currency exchange of $120 million, partially offset by lower sales of $378 million as a result of exiting certain of our brake component and modules businesses in North America during the first quarter of 2014.

        For the six months ended June 27, 2014, the change in TRW sales in North America was less than the increase in vehicle production primarily due to exiting certain of our brake component and modules businesses in North America during the first quarter of 2014. Excluding the impact of exiting these businesses, sales increased 10% in North America, which was more than the 4% vehicle production increase in the region due to a favorable concentration of customers and increased demand for our safety products. In Europe, sales were positively impacted by foreign currency exchange. Excluding the impact of foreign currency exchange, sales increased 3% in Europe, which was less than the 5% vehicle production increase in the region due to the mix of platforms and products sold. In the Rest of World, excluding the impact of foreign currency exchange, sales increased 10%, which was higher than the industry production increase of 3% due to a favorable concentration of customers and increased demand for our safety products.

Cost of sales increased by $199 million, or 3%, for the six months ended June 27, 2014 compared to the six months ended June 28, 2013. The increase was driven primarily by additional costs associated with increased volume (net of cost reductions) of $420 million, as well as the unfavorable impact of foreign currency exchange of $110 million, partially offset by lower cost of sales of $331 million as a result of exiting certain of our brake component and modules businesses in North America.

33

Gross profit, as a percentage of sales, for the six months ended June 27, 2014 was 11.8% compared to 11.0% for the six months ended June 28, 2013. This margin improvement was primarily driven by the favorable profit impact of additional volume, as well as cost reductions.

        Gross profit increased by $109 million for the six months ended June 27, 2014 compared to the six months ended June 28, 2013. The increase was primarily driven by the favorable impact of higher volume (net of a higher proportion of lower margin business) of $148 million and the favorable impact of foreign currency exchange of $10 million, partially offset by the reduction in profit of $47 million as a result of exiting certain of our brake component and modules businesses in North America and increased non-commodity inflation, engineering, salary and other costs totaling $2 million.

Administrative and selling expenses, as a percentage of sales, were 3.7% for the six months ended June 27, 2014 compared to 3.3% for the three months ended June 28, 2013. The increase of $47 million was driven by higher salary and other compensation costs of $27 million, increased non-commodity inflation and other expenses of $15 million, and the unfavorable impact of foreign currency exchange of $5 million.

Restructuring charges and asset impairments were $26 million for the six months ended June 27, 2014 compared to $38 million for the six months ended June 28, 2013. This decrease was driven by lower severance and other charges of $24 million, partially offset by higher asset impairments of $12 million.

Other expense (income)—net increased by $21 million for the six months ended June 27, 2014 compared to the six months ended June 28, 2013. This increase in expense is primarily driven by $10 million related to certain legal matters, an unfavorable impact of foreign currency exchange of $7 million, lower royalty and grant income of $3 million and an increase of bad debt expense of $2 million.

Interest expense—net decreased by $7 million for the six months ended June 27, 2014 compared to the six months ended June 28, 2013. The decrease was primarily a result of lower average borrowing rates of our senior notes, partially offset by increased other debt levels.

Loss on retirement of debt—net was $5 million for the six month period ended June 28, 2013. During the six months ended June 28, 2013 we repurchased portions of our senior unsecured notes due in 2014 and 2017 totaling $91 million in principal amount and recorded a loss on retirement of debt of $5 million.

Income tax expense for the six months ended June 27, 2014 was $170 million on pre-tax earnings of $654 million compared to an income tax expense of $159 million on pre-tax earnings of $592 million for the six months ended June 28, 2013.

34

SEGMENT RESULTS OF OPERATIONS

Comparison of the Three Months Ended June 27, 2014 to the Three Months Ended June 28, 2013.

Sales, Including Intersegment Sales

	Three Months Ended									Variance Drivers:
	June 27, 2014			June 28, 2013			Variance			Volume			Foreign Currency		Other
	(Dollars in millions)
Chassis Systems	$	2,958		$	2,989		$	(31	)	$	193		$	24	$	(248	)
Occupant Safety Systems		943			889			54			45			33		(24	)
Electronics		385			326			59			51			8		—
Automotive Components		512			508			4			(8	)		12		—
Segment Sales		4,798			4,712			86			281			77		(272	)
Intersegment eliminations		(205	)		(198	)		(7	)
Total sales	$	4,593		$	4,514		$	79

•

The favorable impact of foreign currency exchange primarily relates to the euro. In our Chassis Systems segment, this favorable impact was partially offset by the unfavorable impact of the Brazilian real and Chinese renminbi.

•

The following items are included in Other above:

•

The unfavorable impact of lower sales of $248 million in Chassis Systems as a result of exiting certain of our brake component and modules businesses in North America during the first quarter of 2014.

•

The unfavorable impact of price reductions provided to customers of $24 million in Occupant Safety Systems.

Cost of Sales

	Three Months Ended									Variance Components:					Variance Drivers:
	June 27, 2014			June 28, 2013			Variance			Material Cost			Labor and Other Costs		Volume and Inflation			Foreign Currency		Other
	(Dollars in millions)
Chassis Systems	$	2,631		$	2,676		$	(45	)	$	(46	)	$	1	$	149		$	27	$	(221	)
Occupant Safety Systems		835			796			39			23			16		14			25		—
Electronics		342			291			51			42			9		42			9		—
Automotive Components		451			448			3			(4	)		7		(7	)		10		—
Segment cost of sales before intersegment eliminations		4,259			4,211			48			15			33		198			71		(221	)
Intersegment eliminations		(205	)		(198	)		(7	)
Segment cost of sales	$	4,054		$	4,013		$	41

•

The Volume and Inflation category above represents amounts net of cost reduction efforts.

•

The increase in cost of sales related to foreign currency exchange primarily relates to the euro.

•

The following items are included in Other above:

•

The reduction of $221 million in cost of sales in Chassis Systems as a result of exiting certain of our brake component and modules businesses in North America.

35

Earnings Before Taxes

	Three Months Ended									Variance Drivers:
	June 27, 2014			June 28, 2013			Variance			Volume			Foreign Currency			Cost (Increases)/ Reductions			Restructuring			Other
	(Dollars in millions)
Chassis Systems	$	243		$	246		$	(3	)	$	45		$	(3	)	$	(17	)	$	(2	)	$	(26	)
Occupant Safety Systems		89			80			9			18			8			9			(2	)		(24	)
Electronics		36			32			4			8			(3	)		(1	)		—			—
Automotive Components		39			43			(4	)		(2	)		2			(3	)		(1	)		—
Segment earnings before taxes		407			401			6			69			4			(12	)		(5	)		(50	)
Corporate expense and other		(24	)		(17	)		(7	)
Financing costs		(26	)		(34	)		8
Loss on retirement of debt—net		—			(5	)		5
Net earnings attributable to noncontrolling interest, net of tax		10			12			(2	)
Earnings before income taxes	$	367		$	357		$	10

•

The Volume category above includes the net impact of an increased proportion of higher margin business in our Chassis Systems and Occupant Safety Systems segments and a higher proportion of lower margin business in our Electronics segment reflecting the introduction of new products at initial lower margins.

•

The favorable impact of foreign currency exchange in our Occupant Safety Systems segment primarily relates to the euro.

•

The Cost (Increases)/Reductions category above represents growth costs, such as salary and engineering costs, as well as non-commodity inflation and other costs (net of cost savings).

•

The following items are included in Other above:

•

The reduction in profit of $26 million in our Chassis Systems segment as a result of exiting certain of our brake component and modules businesses in North America.

•

The unfavorable impact of price reductions provided to customers of $24 million in Occupant Safety Systems.

•

Certain income and costs not associated with the current operations of our segments are recorded within Corporate. For example, we recognize transactions related to our closed pension plan in the U.K. within Corporate. This plan included hourly employees, substantially all of whom are not actively employed by the Company. Other items recognized within Corporate include costs associated with corporate staff and related expenses, financing costs and gains or losses on the retirement of debt, and certain curtailments of benefit plans.

36

Comparison of the Six Months Ended June 27, 2014 to the Six Months Ended June 28, 2013.

Sales, Including Intersegment Sales

	Six Months Ended									Variance Drivers:
	June 27, 2014			June 28, 2013			Variance			Volume			Foreign Currency		Other
	(Dollars in millions)
Chassis Systems	$	5,832		$	5,718		$	114		$	452		$	40	$	(378	)
Occupant Safety Systems		1,845			1,766			79			76			56		(53	)
Electronics		753			618			135			122			13		—
Automotive Components		1,018			1,008			10			(7	)		17		—
Segment Sales		9,448			9,110			338			643			126		(431	)
Intersegment eliminations		(413	)		(383	)		(30	)
Total sales	$	9,035		$	8,727		$	308

•

The favorable impact of foreign currency exchange primarily relates to the euro. In our Chassis Systems segment, this favorable impact was partially offset by the unfavorable impact of the Brazilian real.

•

The following items are included in Other above:

•

The unfavorable impact of lower sales of $378 million in Chassis Systems as a result of exiting certain of our brake component and modules businesses in North America during the first quarter of 2014.

•

The unfavorable impact of price reductions provided to customers of $53 million in Occupant Safety Systems.

Cost of Sales

	Six Months Ended									Variance Components:					Variance Drivers:
	June 27, 2014			June 28, 2013			Variance			Material Cost			Labor and Other Costs		Volume and Inflation			Foreign Currency		Other
	(Dollars in millions)
Chassis Systems	$	5,217		$	5,162		$	55		$	37		$	18	$	339		$	47	$	(331	)
Occupant Safety Systems		1,654			1,599			55			34			21		12			43		—
Electronics		669			554			115			93			22		101			14		—
Automotive Components		896			893			3			(6	)		9		(12	)		15		—
Segment cost of sales before intersegment eliminations		8,436			8,208			228			158			70		440			119		(331	)
Intersegment eliminations		(413	)		(383	)		(30	)
Segment cost of sales	$	8,023		$	7,825		$	198

•

The Volume and Inflation category above represents amounts net of cost reduction efforts.

•

The increase in cost of sales related to foreign currency exchange primarily relates to the euro.

•

The following items are included in Other above:

•

The reduction of $331 million in cost of sales in Chassis Systems as a result of exiting certain of our brake component and modules businesses in North America.

37

Earnings Before Taxes

	Six Months Ended									Variance Drivers:
	June 27, 2014			June 28, 2013			Variance			Volume			Foreign Currency			Cost (Increases)/ Reductions			Restructuring			Other
	(Dollars in millions)
Chassis Systems	$	435		$	412		$	23		$	97		$	(15	)	$	(9	)	$	(5	)	$	(45	)
Occupant Safety Systems		154			112			42			28			14			28			25			(53	)
Electronics		72			58			14			22			(2	)		(6	)		—			—
Automotive Components		82			88			(6	)		(1	)		1			2			(8	)		—
Segment earnings before taxes		743			670			73			146			(2	)		15			12			(98	)
Corporate expense and other		(52	)		(32	)		(20	)
Financing costs		(57	)		(64	)		7
Loss on retirement of debt—net		—			(5	)		5
Net earnings attributable to noncontrolling interest, net of tax		20			23			(3	)
Earnings before income taxes	$	654		$	592		$	62

•

The Volume category above includes the net impact of an increased proportion of higher margin business in our Chassis Systems and Occupant Safety Systems segments and a higher proportion of lower margin business in our Electronics segment reflecting the introduction of new products at initial lower margins.

•

The unfavorable impact of foreign currency exchange in our Chassis Systems segment primarily relates to the Brazilian real and Chinese renminbi, which outweighed the favorable impact of the euro. The favorable impact of foreign currency exchange in our Occupant Safety Systems segment primarily relates to the euro.

•

The Cost (Increases)/Reductions category above represents cost savings in excess of growth costs, such as salary and engineering costs, as well as non-commodity inflation and other costs.

•

The following items are included in Other above:

•

The unfavorable impact of price reductions provided to customers of $53 million in Occupant Safety Systems.

•

The reduction in profit of $45 million in our Chassis Systems segment as a result of exiting certain of our brake component and modules businesses in North America.

LIQUIDITY AND CAPITAL RESOURCES

        On an annual basis, our primary source of liquidity is cash flows generated from operations. At various points during the course of a given year, we may be in an operating cash usage position, which is not unusual given the seasonality of our business. We also have available liquidity under our Revolving Credit Facility and other credit facilities, subject to certain conditions. We continuously monitor our working capital position and associated cash requirements and explore opportunities to more effectively manage our inventory and capital spending. Working capital is highly influenced by the timing of cash flows associated with sales and purchases, and therefore can be difficult to manage at times. Although we have historically been successful in managing the timing of our cash flows, future success will depend on the financial position of our customers and suppliers, and on industry conditions.

38

        We believe that funds generated from operations, cash on hand and available borrowing capacity will be adequate to fund our liquidity requirements. These requirements, which are significant, generally consist of working capital requirements, company-sponsored research and development programs, capital expenditures, contributions for pensions and postretirement benefits other than pensions, and debt service requirements. In addition, we have been using available funds to reduce debt and to repurchase shares of our common stock under our board approved share repurchase programs. Our current financing plans are intended to provide flexibility in worldwide financing activities and permit us to respond to changing conditions in credit markets. However, our ability to continue to fund these items may be affected by general economic, industry specific, financial market, competitive, legislative and regulatory factors, including developments related to the ongoing Antitrust Investigations.

        As of June 27, 2014, the amount of cash and cash equivalents held by foreign subsidiaries was $908 million. If these funds were repatriated to the U.S., we would be required to provide for U.S. federal and state income tax, foreign income tax, and foreign withholding taxes. We have already provided for such taxes on a significant portion of this cash and cash equivalents that are not deemed to be permanently reinvested. However, for the entities that hold the remainder of such cash and cash equivalents, we have not provided for such taxes as it is our intention that those funds are permanently reinvested outside the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

Cash Flows

        Operating Activities.    Cash provided by operating activities for the six months ended June 27, 2014 was $74 million compared to $93 million for the six months ended June 28, 2013. The decrease of $19 million between the two periods was primarily the result of higher outflows for customer pricing, warranty and recall matters together totaling $21 million, higher outflows for other assets primarily related to reduced tooling recoveries, increased working capital requirements of $18 million, and higher cash paid for taxes of $10 million, partially offset by lower cash paid for pension of $34 million as well as higher cash earnings.

        Investing Activities.    Cash used in investing activities for the six months ended June 27, 2014 was $242 million compared to $271 million for the six months ended June 28, 2014.

        Capital expenditures for the six months ended June 27, 2014 were $236 million compared to $271 million for the six months ended June 28, 2013. These capital expenditures were primarily related to investing in new facilities, upgrading existing products, continuing new product launches, and infrastructure and equipment at our facilities to support our manufacturing and cost reduction efforts. We expect to spend between $730 and $750 million during 2014 on capital expenditures as we continue to invest in our strategic priorities and growth.

        For the six months ended June 27, 2014, the Company made an initial equity contribution of $6 million in a newly formed joint venture in Mexico. The joint venture will eventually supply castings to our North American Braking operations through a long-term supply arrangement.

        Financing Activities.    Cash used in financing activities was $625 million for the six months ended June 27, 2014, compared to cash provided by financing activities of $186 million for the six months ended June 28, 2013.

        During the six months ended June 27, 2014, we repaid the outstanding principal balance of $469 million upon maturity on our 6.375% Senior Notes and 7.00% Senior Notes. We also increased our short-term borrowings by $251 million. Additionally, we used $400 million of cash on hand and initially received approximately 3.9 million shares of our common stock under an accelerated share

39

repurchase agreement. Also, during the six months ended June 27, 2014, certain of our subsidiaries paid $3 million of dividends to noncontrolling stockholders.

Other Sources of Liquidity

        Our Eighth Amended and Restated Credit Agreement dated September 28, 2012 (the "Eighth Credit Agreement") provides for senior credit facilities consisting of (i) a revolving credit facility in the amount of $1.4 billion which matures in September 2017, subject to certain conditions (the "Revolving Credit Facility"), and (ii) additional availability which may be used in the future for one or more term loans or additional revolving facilities (together with the Revolving Credit Facility, the "Facilities"). As of June 27, 2014, we had no outstanding borrowings under our Revolving Credit Facility, resulting in $1.4 billion of availability. See "—Senior Credit Facilities" in Note 10 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for a description of our Revolving Credit Facility.

        As of June 27, 2014, our subsidiaries in the United States, European region and Asia Pacific region also had various uncommitted credit facilities with individual banks, of which $366 million, $218 million and $131 million, respectively, was unutilized.

        We may draw down on and use proceeds from any of these credit facilities, including our Revolving Credit Facility, from month to month in conjunction with available cash on hand in order to fund normal working capital needs. As of June 27, 2014, we had short-term borrowings under uncommitted credit facilities totaling $397 million, while during the quarter we had up to $419 million, in aggregate, outstanding under these credit facilities.

        The Eighth Credit Agreement governs our Facilities and contains a number of covenants, including financial covenants, that would impact our ability to borrow on the facility if not met and restrictive covenants that restrict, among other things and subject to certain exceptions, the ability to incur additional indebtedness, repay or repurchase other indebtedness, repurchase capital stock and pay cash dividends on our common stock. As of June 27, 2014, we were in compliance with all of our financial covenants. Such covenants are described in more detail in Note 11 to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Contractual Obligations and Commitments

        During the six months ended June 27, 2014, there have been no material changes outside the ordinary course of our business to the contractual obligations previously disclosed in "—Contractual Obligations and Commitments" in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Off-Balance Sheet Arrangements

        We do not have material off-balance sheet arrangements. We do not have guarantees related to unconsolidated entities, which have, or are reasonably likely to have, a material current or future effect on our financial position, results of operations or cash flows.

CONTINGENCIES AND ENVIRONMENTAL MATTERS

        The information concerning the ongoing antitrust matters and other contingencies, including environmental contingencies and the amount currently held in reserve for environmental matters, contained in Note 14 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report is incorporated herein by reference.

40

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

        There were no new accounting pronouncements adopted or issued during the six month period ended June 27, 2014 that have had or are expected to have a material impact on our financial statements.

CRITICAL ACCOUNTING ESTIMATES

        There have been no significant changes in our critical accounting estimates during the six months ended June 27, 2014.

OUTLOOK

        We expect full year 2014 sales to be in the range of $17.5 billion to $17.7 billion, including third quarter sales of approximately $4.2 billion. These sales figures are based on expected 2014 production levels of 17.0 million units in North America, 19.9 million units in Europe, continued expansion in vehicle production volumes in China, and our expectations for foreign currency exchange rates.

        In general, we expect global production levels to increase in 2014 compared to 2013. In North America, growth is expected to continue moderating as the industry approaches trend demand levels. Production levels for the Detroit Three (defined as Chrysler Group LLC, Ford Motor Company, and General Motors Company, combined), are expected to lag behind the production levels for the region in the second half of 2014 due to significant model changeovers. In general, our financial results are more closely correlated to the production by the Detroit Three given our higher sales content to these manufacturers compared to other manufacturers. In Europe, while we expect the economic recovery to continue, production levels are expected to be relatively flat compared to 2013 for the remainder of the year. Further, geopolitical tension may impact the economic stabilization and production levels in this region. Growth in China is expected to continue at a moderate pace in 2014. Considering the expected long-term growth within this region, we continue to invest appropriate levels of capital, engineering and infrastructure to underpin our expansion and position us to benefit from these growth opportunities.

        We continue to evaluate our global footprint to ensure that we are properly configured and sized based on changing market conditions and the production plans of our customers. We will continue to assess our cost base primarily in Europe, and in 2014, we intend to continue our restructuring efforts, including plant rationalizations, targeted workforce reductions and adjustments to certain of our fixed costs, to align our operations with the existing environment. As a result, we expect to incur restructuring charges of approximately $65 million in 2014. We believe these efforts are necessary actions in order to preserve our competitiveness and will provide lasting benefit over the long term.

        While we expect net commodity inflation to be immaterial in 2014, we will continue to monitor commodity costs and work with our suppliers and customers to manage changes in such costs as required.

        The Antitrust Investigation by the European Commission is ongoing. While we cannot estimate the ultimate financial impact of the European investigation at this time, we will continue to evaluate developments in this matter on a regular basis and will record an accrual as and when appropriate.

        On July 10, 2014, we issued a press release announcing that we received a preliminary, non-binding proposal to acquire the Company, which we are evaluating along with other strategic alternatives which may enhance stockholder value. We will continue to execute our existing business plan while we conduct this analysis. We have not made a decision to pursue any specific strategic transaction or any other strategic alternative, and there is no set timetable for the strategic review process. There can be no assurance that the process described above will result in the consummation of any transaction or any changes to the Company's current business plan.

41

        Despite the various challenges that the automotive industry faces, we are confident that we will manage through them successfully. We believe that our growth prospects, strong balance sheet, ability to generate cash and our broad array of innovative products provide a firm foundation for continued profitability.

FORWARD-LOOKING STATEMENTS

        This Report includes "forward-looking statements," as that term is defined by the federal securities laws. Forward-looking statements include statements concerning our plans, intentions, objectives, goals, strategies, forecasts, future events, future revenue or performance, capital expenditures, financing needs, business trends and other information that is not historical information. When used in this Report, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are so designated. All forward-looking statements, including, without limitation, management's examination of historical operating trends and data, are based upon our current expectations and various assumptions, and apply only as of the date of this Report. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will be achieved.

        There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those suggested by our forward-looking statements, including those set forth in the Company's Annual Report on Form 10-K for fiscal year ended December 31, 2013 under "Item 1A. Risk Factors," including: economic conditions adversely affecting our business, results or the viability of our supply base; risks associated with non-U.S. operations, including economic and political uncertainty in some regions, adversely affecting our business, results or financial condition; the unsuccessful implementation of our current expansion efforts adversely impacting our business or results; any developments related to antitrust investigations adversely affecting our financial condition, results, cash flows or reputation; pricing pressures from our customers adversely affecting our profitability; global competition adversely affecting our sales, profitability or financial condition; any disruption in our information technology systems adversely impacting our business and operations; any shortage of supplies causing a production disruption for any customers or us; the loss of any of our largest customers or a significant amount of their business, or a significant decline in their production levels, adversely affecting us; strengthening of the U.S. dollar and other foreign currency exchange rate fluctuations impacting our results; our contingent liabilities and tax matters causing us to incur losses or costs; any inability to protect our intellectual property rights adversely affecting our business or our competitive position; commodity inflationary pressures adversely affecting our profitability or supply base; costs or adverse effects on our business, reputation or results from governmental regulations; work stoppages or other labor issues at our facilities or those of our customers or others in our supply chain adversely affecting our business, results or financial condition; any increase in the expense of our pension and other postretirement benefits or the funding requirements of our pension plans reducing our profitability; and other risks and uncertainties set forth in our Annual Report on Form 10-K, in "—Executive Overview" above and in our other filings with the Securities and Exchange Commission.

        All forward-looking statements are expressly qualified in their entirety by such cautionary statements. We do not undertake any obligation to release publicly any update or revision to any of the forward-looking statements.

42

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

        There have been no material changes to the quantitative and qualitative information about the Company's market risk from those previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Item 4.    Controls and Procedures

        Evaluation of Disclosure Controls and Procedures.    Our Chief Executive Officer and Chief Financial Officer, based on their evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of June 27, 2014, have concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files and submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the specified time periods and is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure.

        Changes in Internal Control over Financial Reporting.    There was no change in the Company's internal controls over financial reporting that occurred during the second fiscal quarter of 2014 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

43

PART II—OTHER INFORMATION

Item 1.    Legal Proceedings

        The information concerning the ongoing antitrust matters and other legal proceedings involving the Company contained in Note 14 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report is incorporated herein by reference.

Item 1A.    Risk Factors

        There have been no material changes in the Company's risk factors from those previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

(c)

Issuer repurchases of equity securities

        The Company has two share repurchase programs in place, consisting of a $2 billion program that extends through December 31, 2016 (the "$2 Billion Program"), and a program that is intended to offset, on an ongoing basis, the dilution created by the Company's stock incentive plan for up to 1.5 million shares in 2014 and each subsequent year (the "Anti-Dilution Program"). No share repurchases were made in the second quarter of 2014. Approximately $1.1 billion in dollar value of shares may yet be purchased under the $2 Billion Program. During the first quarter of 2014, the Company reached its 2014 board-authorized limit under the Anti-Dilution Program; however, additional shares may be purchased under the Anti-Dilution Program in 2015 and subsequent years.

        The $400 million ASR agreement entered into in the first quarter of 2014 is expected to be completed by the end of the third quarter of 2014, at which point the total number of shares to be ultimately delivered, and therefore the average price paid per share, will be determined based on the volume weighted average price of the Company's common stock during the repurchase period.

        Additional information regarding our share repurchase programs can be found in Part II, Item 5 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Item 5.    Other Information

        None.

Item 6.    Exhibits (including those incorporated by reference)

Exhibit Number			Exhibit Name
	3.1		Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2003)
	3.2		Fourth Amended and Restated By-Laws of the Company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed February 14, 2014)
	31(a)	*	Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002
	31(b)	*	Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002
	32	*	Certification Pursuant to 18 U.S.C. §1350, As Adopted Pursuant to §906 of the Sarbanes-Oxley Act of 2002

44

Exhibit Number			Exhibit Name
	101.INS	*	XBRL Instance Document
	101.SCH	*	XBRL Taxonomy Extension Schema Document
	101.CAL	*	XBRL Taxonomy Extension Calculation Linkbase Document
	101.LAB	*	XBRL Taxonomy Extension Label Linkbase Document
	101.PRE	*	XBRL Taxonomy Extension Presentation Linkbase Document
	101.DEF	*	XBRL Taxonomy Extension Definition Linkbase Document

*

Filed herewith

45

Signatures

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TRW Automotive Holdings Corp. (Registrant)
Date: July 29, 2014	By:	/s/ JOSEPH S. CANTIE Joseph S. Cantie Executive Vice President and Chief Financial Officer (On behalf of the Registrant and as Principal Financial Officer)

46

EX-31.(A)

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Exhibit 31(a)

CERTIFICATIONS

Certification of Principal Executive Officer

I, John C. Plant, certify that:

1.

I have reviewed this quarterly report on Form 10-Q for the period ended June 27, 2014 (this "Report") of TRW Automotive Holdings Corp. (the "Registrant");

2.

Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3.

Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4.

The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d.

Disclosed in this Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5.

The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: July 29, 2014 /s/ JOHN C. PLANT
John C. Plant
Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)

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Exhibit 31(a)

CERTIFICATIONS

EX-31.(B)

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Exhibit 31(b)

CERTIFICATIONS

Certification of Principal Financial Officer

I, Joseph S. Cantie, certify that:

1.

I have reviewed this quarterly report on Form 10-Q for the period ended June 27, 2014 (this "Report") of TRW Automotive Holdings Corp. (the "Registrant");

2.

Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3.

Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4.

The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d.

Disclosed in this Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5.

The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: July 29, 2014 /s/ JOSEPH S. CANTIE
Joseph S. Cantie
Executive Vice President and Chief Financial Officer (Principal Financial Officer)

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Exhibit 31(b)

CERTIFICATIONS

EX-32

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Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the filing of this quarterly report on Form 10-Q of TRW Automotive Holdings Corp. (the "Company") for the period ended June 27, 2014, with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer's knowledge:

1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and



2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 29, 2014	/s/ JOHN C. PLANT John C. Plant Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)
	/s/ JOSEPH S. CANTIE Joseph S. Cantie Executive Vice President and Chief Financial Officer (Principal Financial Officer)

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Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

XML

Investment in Joint Venture Affiliate (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013
Investment in Joint Venture Affiliate [Abtract]
Investment in non-consolidated joint venture assets	$ 6	$ 0
Non-consolidated Joint Venture Investment Ownership Percentage	30.00%

XML

Debt - Senior Credit Facilities (Detail) (USD $) In Billions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014	Sep. 28, 2012
Debt Disclosure [Line Items]
Revolving credit facility, facility size		$ 1.4
Commitment fee	0.25%
Euro Denominated [Member]
Debt Disclosure [Line Items]
Applicable margin	1.25%
Base Rate [Member]
Debt Disclosure [Line Items]
Applicable margin	0.25%

XML

Financial Instruments - Not Carried at Fair Value (Detail) (USD $) In Millions, unless otherwise specified	Jun. 27, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term debt	$ 406	$ 159
Exchageable Notes	137	134
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term debt	406	159
Long-term debt	1,349	1,821
Exchageable Notes	137	134
Portion At Fair Value Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term debt	406	159
Exchageable Notes	448	375
Portion At Fair Value Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Rate [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,466	$ 1,884

XML

Pension Plans and Postretirement Benefits Other Than Pensions - Components of Net OPEB (Income) Cost (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Postretirement Benefits Other than Pension - U.S.
Pension Plan [Line Items]
Interest cost on projected benefit obligations	$ 4	$ 4	$ 8	$ 7
Amortization	(3)	(3)	(5)	(7)
Settlements	0	(2)	0	(6)
Defined benefit plan, net (income) cost	1	(1)	3	(6)
Postretirement Benefits Other than Pension - Rest of World
Pension Plan [Line Items]
Interest cost on projected benefit obligations	1	1	2	2
Amortization	(1)	(2)	(3)	(2)
Settlements	0	0	0	0
Defined benefit plan, net (income) cost	$ 0	$ (1)	$ (1)	$ 0

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Description of Business (Detail)	12 Months Ended
	Dec. 31, 2013
Description of Business [Abstract]
Sales to major OEM	83.00%

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Restructuring Charges and Asset Impairments - Movement of the Restructuring Reserves for Severance and Other Charges (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013
Restructuring Charges And Asset Impairments [Abstract]
Beginning balance	$ 88	$ 121
Current period accruals, net of changes in estimates	14	38
Used for purposes intended, restructuring	34	43
Effects of foreign currency translation and transfers	(1)	(1)
Ending balance	67	115
Restructuring reserve expected to be paid within one year	$ 40

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 27, 2014

Goodwill and Intangible Assets [Abstract]

Changes in Goodwill [Table Text Block]

The changes in goodwill for the period are as follows:

			Occupant
	Chassis		Safety				Automotive
	Systems		Systems		Electronics		Components
	Segment		Segment		Segment		Segment		Total
	(Dollars in millions)
Balance as of December 31, 2013	$	1,071	$	541	$	148	$	-	$	1,760
Effects of foreign currency translation		-		(1)		-		-		(1)
Balance as of June 27, 2014	$	1,071	$	540	$	148	$	-	$	1,759

Schedule Of Intangible Assets By Major Class [Table Text Block]

Intangible assets
	The following table reflects intangible assets and related accumulated amortization:
		As of June 27, 2014						As of December 31, 2013
		Gross				Net		Gross				Net
		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
			(Dollars in millions)
Definite-lived intangible assets:
	Developed technology and other intangible assets	$	118		(93)	$	25	$	119	$	(91)	$	28
Indefinite-lived intangible assets:
	Trademarks		264				264		264				264
Total		$	382			$	289	$	383			$	292

Expected Amortization Expense [Table Text Block]

The Company expects that ongoing amortization expense will approximate the following:
		(Dollars in millions)
	Remainder of 2014	$	2
	Fiscal year 2015		3
	2016 and beyond		20
The expected amortization expense for 2016 and beyond primarily relates to land use rights.

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Financial Instruments - Offsetting of Derivative Assets and Liabilities (Detail) (Foreign Exchange Contract, USD $) In Millions, unless otherwise specified	Jun. 27, 2014	Dec. 31, 2013
Foreign Exchange Contract
Offsetting Assets [Line Items]
Derivative assets, gross amount recognized	$ 54	$ 42
Derivative assets, gross amounts offset	(32)	(36)
Derivative asets, net amounts reported	22	6
Derivative liabilities, gross amounts recognized	36	50
Derivative liabilities, gross amounts offset	(32)	(36)
Derivative liabilities, net amounts reported	$ 4	$ 14

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Goodwill and Intangible Assets - Expected Amortization Expense (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014
Goodwill and Intangible Assets [Abstract]
Remainder of Current Fiscal Year	$ 2
Fiscal Year Two	3
Fiscal Year Three and Beyond	$ 20

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Basis of Presentation- Changes in Accumulated Other Comprehensive Income (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013	Mar. 28, 2014	Dec. 31, 2013	Mar. 29, 2013	Dec. 31, 2012
Basis of Presentation [Abstract]
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	$ 8	$ (16)	$ 8	$ (16)	$ (16)	$ (16)	$ 8	$ 10
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(406)	(577)	(406)	(577)	(402)	(405)	(544)	(559)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	78	(34)	78	(34)	43	41	(3)	83
Total Accumulated other comprehensive earnings (losses)	(320)	(627)	(320)	(627)	(375)	(380)	(539)	(466)
OCI before reclassifications, cash flow hedges	23	(23)	20	(25)
OCI before reclassifications, retirement obligations	(5)	(37)	(3)	(27)
OCI before reclassifications, foreign currency translation	35	(31)	37	(117)
OCI before reclassifications, total	53	(91)	54	(169)
Amounts reclassified from AOCI, cash flow hedges	1	(1)	4	(1)
Amounts reclassified from AOCI, retirement obligations	1	4	2	9
Amounts reclassified from AOCI, total	2	3	6	8
Current period OCI, cash flow hedges	24	(24)	24	(26)
Current period OCI, Retirement obligations	(4)	(33)	(1)	(18)
Current Period OCI, foreign currency translation	35	(31)	37	(117)
Current period OCI, total	55	(88)	60	(161)
Actuarial gains or losses reclassified from AOCI	5	10	9	22
Prior service costs reclassified from AOCI	3	4	6	9
Tax amount of retirement obligations reclassified from AOCI	$ 1	$ 2	$ 1	$ 4

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Debt - Senior Notes (Detail) In Millions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014 Senior Notes 7.00% Due 2014 [Member] USD ($)	Jun. 27, 2014 Senior Notes 6.375% Due 2014 [Member] EUR (€)	Mar. 31, 2007 Senior Notes 7.25% Due 2017 [Member] USD ($)	Feb. 28, 2013 Senior Notes 4.50% Due 2021 [Member] USD ($)	Nov. 30, 2013 Senior Notes 4.45% Due 2023 [Member] USD ($)
Debt Disclosure [Line Items]
Face amount			$ 600	$ 400	$ 400
Interest rate			7.25%	4.50%	4.45%
Senior Notes Matured and Repaid	$ 233	€ 170

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Contingencies (Detail) (USD $) In Millions, unless otherwise specified	Jun. 27, 2014
Contingencies [Abstract]
Reserves for environmental matters	$ 73
Northrop indemnification percentage	50.00%

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Fair Value Measurements - Recurring and Nonrecurring Basis (Detail) (USD $) In Millions, unless otherwise specified									6 Months Ended
	Jun. 27, 2014 Fair Value, Measurements, Recurring Current Assets [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring Current Assets [Member] Fair Value, Inputs, Level 2 [Member]	Jun. 27, 2014 Fair Value, Measurements, Recurring Noncurrent Assets [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring Noncurrent Assets [Member] Fair Value, Inputs, Level 2 [Member]	Jun. 27, 2014 Fair Value, Measurements, Recurring Current Liabilities [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring Current Liabilities [Member] Fair Value, Inputs, Level 2 [Member]	Jun. 27, 2014 Fair Value, Measurements, Recurring Noncurrent Liabilities [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring Noncurrent Liabilities [Member] Fair Value, Inputs, Level 2 [Member]	Jun. 27, 2014 Fair Value, Measurements, Nonrecurring
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts assets	$ 12	$ 6	$ 10	$ 0
Foreign currency contracts liabilities					3	5	1	9
Fixed asset impairments									$ 12

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Inventories

6 Months Ended

Jun. 27, 2014

Inventories [Abstract]

Inventories

3. Inventories
	The major classes of inventory are as follows:
			As of
			June 27,		December 31,
			2014		2013
			(Dollars in millions)
	Finished products and work in process		$	553	$	499
	Raw materials and supplies			566		520
		Total inventories	$	1,119	$	1,019

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Segment Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Segment Reporting Information [Line Items]
Sales	$ 4,593	$ 4,514	$ 9,035	$ 8,727
Intersegment and Segment Sales	4,798	4,712	9,448	9,110
Financing costs	(26)	(34)	(57)	(64)
Loss on retirement of debt - net	0	(5)	0	(5)
Net earnings attributable to noncontrolling interest, net of tax	10	12	20	23
Earnings before income taxes	367	357	654	592
Intersegment Sales [Member]
Segment Reporting Information [Line Items]
Intersegment and Segment Sales	205	198	413	383
Chassis Systems [Member]
Segment Reporting Information [Line Items]
Sales	2,954	2,985	5,825	5,710
Intersegment and Segment Sales	2,958	2,989	5,832	5,718
Segment earnings before taxes	243	246	435	412
Chassis Systems [Member] | Intersegment Sales [Member]
Segment Reporting Information [Line Items]
Intersegment and Segment Sales	4	4	7	8
Occupant Safety Systems [Member]
Segment Reporting Information [Line Items]
Sales	905	856	1,770	1,700
Intersegment and Segment Sales	943	889	1,845	1,766
Segment earnings before taxes	89	80	154	112
Occupant Safety Systems [Member] | Intersegment Sales [Member]
Segment Reporting Information [Line Items]
Intersegment and Segment Sales	38	33	75	66
Electronics [Member]
Segment Reporting Information [Line Items]
Sales	241	184	460	346
Intersegment and Segment Sales	385	326	753	618
Segment earnings before taxes	36	32	72	58
Electronics [Member] | Intersegment Sales [Member]
Segment Reporting Information [Line Items]
Intersegment and Segment Sales	144	142	293	272
Automotive Components [Member]
Segment Reporting Information [Line Items]
Sales	493	489	980	971
Intersegment and Segment Sales	512	508	1,018	1,008
Segment earnings before taxes	39	43	82	88
Automotive Components [Member] | Intersegment Sales [Member]
Segment Reporting Information [Line Items]
Intersegment and Segment Sales	19	19	38	37
Operating Segments
Segment Reporting Information [Line Items]
Segment earnings before taxes	407	401	743	670
Corporate expense and other
Segment Reporting Information [Line Items]
Earnings before income taxes	$ (24)	$ (17)	$ (52)	$ (32)

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Other (Income) Expense - Net (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Other (Income) Expense - Net [Abstract]
Net provision for bad debts	$ 3	$ 0	$ 4	$ 2
Net gain on sales of assets and divestitures	0	0	0	(1)
Foreign currency exchange (gains) losses	5	8	13	6
Royalty and grant income	(6)	(5)	(9)	(6)
Miscellaneous other (income) expense	7	(5)	7	(7)
Other (income) expense - net	$ 9	$ (2)	$ 15	$ (6)

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Debt (Tables)

6 Months Ended

Jun. 27, 2014

Debt [Abstract]

Total Outstanding Debt [Table Text Block]

10. Debt
Total outstanding debt of the Company consisted of the following:
			As of
			June 27,		December 31,
			2014		2013
			(Dollars in millions)
	Short-term debt		$	406	$	159
	Long-term debt:
	6.375% Senior Notes, due 2014		$	-	$	234
	7.00% Senior Notes, due 2014			-		233
	7.25% Senior Notes, due 2017			445		446
	4.50% Senior Notes, due 2021			400		400
	4.45% Senior Notes, due 2023			400		400
	Exchangeable senior notes, due 2015			137		134
	Revolving credit facility			-		-
	Capitalized leases			17		18
	Other long-term borrowings			87		90
		Total long-term debt		1,486		1,955
	Less current portion			37		482
		Long-term debt, net of current portion	$	1,449	$	1,473

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Fair Value Measurements and Financial Instruments (Tables)

6 Months Ended

Jun. 27, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements Recurring Basis [Table Text Block]

	As of
	June 27, 2014		December 31, 2013		Measurement Approach
	(Dollars in millions)
Foreign currency exchange contracts — current assets	$	12	$	6	Level 2
Foreign currency exchange contracts — noncurrent assets		10		-	Level 2
Foreign currency exchange contracts — current liability		3		5	Level 2
Foreign currency exchange contracts — noncurrent liability		1		9	Level 2

Financial Instruments Not Carried at Fair Value [Table Text Block]

	As of
	June 27, 2014				December 31, 2013
		Carrying	Fair		Carrying			Fair	Measurement
		Value	Value		Value			Value	Approach
	(Dollars in millions)
Short-term debt, fixed and floating rate	$	406	$	406	$	159	$	159	Level 2
Fixed rate long-term debt	$	1,349	$	1,466	$	1,821	$	1,884	Level 2
Fixed rate exchangeable notes	$	137	$	448	$	134	$	375	Level 2

Offsetting Assets And Liabilites [Table Text Block]

Offsetting of Derivative Assets and Liabilities
	The following table reflects the offsetting of derivative assets and liabilities:
		As of June 27, 2014						As of December 31, 2013
		Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Reported		Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Reported
			(Dollars in millions)
Derivative Assets:
	Foreign Currency	$	54	$	(32)	$	22	$	42	$	(36)	$	6
Derivative Liabilities:
	Foreign Currency		36		(32)		4		50		(36)		14

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Restructuring Charges and Asset Impairments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Restructuring Cost and Reserve [Line Items]
Severance and other charges	$ 6	$ 1	$ 14	$ 38
Asset impairments related to restructuring activities	0		12	0
Total restructuring charges and asset impairments	6	1	26	38
Chassis Systems [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other charges	3	1	10	17
Asset impairments related to restructuring activities	0		12
Total restructuring charges and asset impairments	3	1	22	17
Occupant Safety Systems [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other charges	2	0	2	27
Asset impairments related to restructuring activities	0		0
Total restructuring charges and asset impairments	2	0	2	27
Automotive Components [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other charges	1	0	2	(6)
Asset impairments related to restructuring activities	0		0
Total restructuring charges and asset impairments	1	0	2	(6)
Electronics [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other charges	0	0	0	0
Asset impairments related to restructuring activities	0		0
Total restructuring charges and asset impairments	0	0	0	0
Corporate [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other charges	0	0	0	0
Asset impairments related to restructuring activities	0		0
Total restructuring charges and asset impairments	$ 0	$ 0	$ 0	$ 0

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Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Income Taxes [Line Items]
Income tax expense	$ 92	$ 97	$ 170	$ 159
Earnings before income taxes	367	357	654	592
Income tax expense (benefit), tax adjustments, settlements, and unusual provisions	(6)	(4)	(6)
Tax benefit related to enactment of tax legislation				(12)
Net of discrete tax items [Member]
Income Taxes [Line Items]
Tax benefit related to enactment of tax legislation				$ (8)

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Restructuring Charges and Asset Impairments (Tables)

6 Months Ended

Jun. 27, 2014

Restructuring Charges And Asset Impairments [Abstract]

Schedule Of Restructuring Asset Impairment And Related Costs [Table Text Block]

				Occupant
		Chassis		Safety				Automotive
		Systems		Systems		Electronics		Components
		Segment		Segment		Segment		Segment		Corporate		Total
		(Dollars in millions)
For the three months ended June 27, 2014:
	Severance and other charges - net	$	3	$	2	$	-	$	1	$	-	$	6
	Total restructuring charges and asset impairments	$	3	$	2	$	-	$	1	$	-	$	6
For the three months ended June 28, 2013:
	Severance and other charges	$	1	$	-	$	-	$	-	$	-	$	1
	Total restructuring charges and asset impairments	$	1	$	-	$	-	$	-	$	-	$	1
For the six months ended June 27, 2014:
	Severance and other charges - net	$	10	$	2	$	-	$	2	$	-	$	14
	Asset impairments related to restructuring activities		12		-		-		-		-		12
	Total restructuring charges and asset impairments	$	22	$	2	$	-	$	2	$	-	$	26
For the six months ended June 28, 2013:
	Severance and other charges	$	17	$	27	$	-	$	(6)	$	-	$	38
	Total restructuring charges and asset impairments	$	17	$	27	$	-	$	(6)	$	-	$	38

Movement of the Restructuring Reserves for Severance and Other Charges [Table Text Block]

Restructuring Reserves
The following table illustrates the movement of the restructuring reserves for severance and other charges, including reserves related to severance-related postemployment benefits for both periods presented:
			Six Months Ended
			June 27,		June 28,
			2014		2013
			(Dollars in millions)
	Beginning balance		$	88	$	121
		Current period accruals, net of changes in estimates		14		38
		Used for purposes intended		(34)		(43)
		Effects of foreign currency translation		(1)		(1)
	Ending balance		$	67	$	115

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 27, 2014

Share-Based Compensation [Abstract]

Share Based Compensation Expense By Type [Table Text Block]

Share-based compensation expense recognized for the Plan was as follows:
		Three Months Ended				Six Months Ended
		June 27,		June 28,		June 27,		June 28,
		2014		2013		2014		2013
		(Dollars in millions)
Stock options and SSARs		$	3	$	4	$	5	$	6
RSUs			7		6		12		15
Performance Units			1		-		2		-
	Total share-based compensation expense	$	11	$	10	$	19	$	21

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Basis of Presentation

6 Months Ended

Jun. 27, 2014

Basis of Presentation [Abstract]

Basis of Presentation

2. Basis of Presentation

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 14, 2014.

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. These financial statements include all adjustments (consisting primarily of normal, recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company. Operating results for the three and six months endedJune 27, 2014 are not necessarily indicative of results that may be expected for the year ending December 31, 2014.

The Company follows a fiscal calendar that ends on December 31. However, each fiscal quarter has three periods consisting of one five week period and two four week periods. Each quarterly period ends on a Friday, with the possible exception of the final quarter of the year, which always ends on December 31.

Earnings Per Share. Basic earnings per share are calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share reflect the weighted average impact of all potentially dilutive securities from the date of issuance, including stock options, restricted stock units (“RSUs”), stock-settled stock appreciation rights (“SSARs”) and performance stock units (“Performance Units”). Further, if the inclusion of shares potentially issuable for the Company's 3.50% exchangeable senior unsecured notes (see Note 10) is more dilutive than the inclusion of the interest expense for those exchangeable notes, the Company utilizes the “if-converted” method to calculate diluted earnings per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense and amortization of the discount recognized on the exchangeable notes and includes the number of shares potentially issuable related to the exchangeable notes in the weighted average shares outstanding.

If the average market price of the Company's common stock exceeds the exercise price of stock options outstanding or the fair value on the date of grant of the SSARs, the treasury stock method is used to determine the incremental number of shares to be included in the diluted earnings per share computation.

Net earnings attributable to TRW and the weighted average shares outstanding used in calculating basic and diluted earnings per share were:
			Three Months Ended				Six Months Ended
			June 27,		June 28,		June 27,		June 28,
			2014		2013		2014		2013
			(In millions, except per share amounts)
	Net earnings attributable to TRW		$	265	$	248	$	464	$	410
	Interest expense on exchangeable notes, net of tax			1		1		2		2
	Amortization of discount on exchangeable notes, net of tax			1		1		2		2
	Net earnings attributable to TRW for purposes of calculating diluted earnings per share		$	267	$	250	$	468	$	414
	Basic:
		Weighted average shares outstanding		110.8		118.9		112.0		119.2
		Basic earnings per share	$	2.39	$	2.09	$	4.14	$	3.44
	Diluted:
		Weighted average shares outstanding		110.8		118.9		112.0		119.2
		Effect of dilutive stock options, RSUs and SSARs		1.6		1.0		1.6		1.2
		Shares applicable to exchangeable notes		5.0		5.9		5.0		5.9
		Diluted weighted average shares outstanding		117.4		125.8		118.6		126.3
		Diluted earnings per share	$	2.27	$	1.99	$	3.95	$	3.28

For both the three and sixmonths ended June 27, 2014, approximately1millionsecuritieswere excluded from the calculation of diluted earnings per share because the inclusion of such securities in the calculation would have been anti-dilutive.

For both the three and sixmonths ended June 28, 2013, approximately 1.6 million securities were excluded from the calculation of diluted earnings per share because the inclusion of such securities in the calculation would have been anti-dilutive.

Equity. The following tables present a rollforward of the changes in equityattributable to TRW shareholders and to the noncontrolling interest.

	Three Months Ended
	June 27, 2014						June 28, 2013
	Total		TRW Shareholders		Noncontrolling Interest		Total		TRW Shareholders		Noncontrolling Interest
	(Dollars in millions)
Beginning balance of equity	$	4,198	$	3,991	$	207	$	3,870	$	3,671	$	199
Net earnings		275		265		10		260		248		12
Other comprehensive earnings (losses)		53		55		(2)		(87)		(88)		1
Dividends paid to noncontrolling interest		-		-		-		(13)		-		(13)
Changes related to share-based compensation		13		13		-		13		13		-
Repurchase of capital stock		-		-		-		(190)		(190)		-
Ending balance of equity	$	4,539	$	4,324	$	215	$	3,853	$	3,654	$	199

	Six Months Ended
	June 27, 2014						June 28, 2013
	Total		TRW Shareholders		Noncontrolling Interest		Total		TRW Shareholders		Noncontrolling Interest
	(Dollars in millions)
Beginning balance of equity	$	4,396	$	4,194	$	202	$	3,769	$	3,578	$	191
Net earnings		484		464		20		433		410		23
Other comprehensive earnings (losses)		56		60		(4)		(161)		(161)		-
Dividends paid to noncontrolling interest		(3)		-		(3)		(15)		-		(15)
Changes related to share-based compensation		6		6		-		27		27		-
Repurchase of capital stock		(400)		(400)		-		(200)		(200)		-
Ending balance of equity	$	4,539	$	4,324	$	215	$	3,853	$	3,654	$	199

The following tables present changes in accumulated other comprehensive earnings (losses)attributable to TRW by component:

		Foreign Currency Translation		Retirement Obligations		Deferred Cash Flow Hedges		Total
		(Dollars in millions)
For the three months ended June 27, 2014:
Beginning balance attributable to TRW, net of tax		$	43	$	(402)	$	(16)	$	(375)
	Other comprehensive earnings (losses) before reclassifications, net of tax		35		(5)		23		53
	Amounts reclassified from accumulated other comprehensive earnings, net of tax		-		1(a)		1		2
Other comprehensive earnings (losses), net of tax			35		(4)		24		55
Ending balance attributable to TRW, net of tax		$	78	$	(406)	$	8	$	(320)
For the three months ended June 28, 2013:
Beginning balance attributable to TRW, net of tax		$	(3)	$	(544)	$	8	$	(539)
	Other comprehensive losses before reclassifications, net of tax		(31)		(37)		(23)		(91)
	Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax		-		4(b)		(1)		3
Other comprehensive losses, net of tax			(31)		(33)		(24)		(88)
Ending balance attributable to TRW, net of tax		$	(34)	$	(577)	$	(16)	$	(627)
(a)	Includes actuarial gains of $5 million, reduced by prior service cost of $3 million, net of tax of $1 million.
(b)	Includes actuarial gains of $10 million, reduced by prior service cost of $4 million, net of tax of $2 million.

		Foreign Currency Translation		Retirement Obligations		Deferred Cash Flow Hedges		Total
		(Dollars in millions)
For the six months ended June 27, 2014:
Beginning balance attributable to TRW, net of tax		$	41	$	(405)	$	(16)	$	(380)
	Other comprehensive earnings (losses) before reclassifications, net of tax		37		(3)		20		54
	Amounts reclassified from accumulated other comprehensive earnings, net of tax		-		2(a)		4		6
Other comprehensive earnings (losses), net of tax			37		(1)		24		60
Ending balance attributable to TRW, net of tax		$	78	$	(406)	$	8	$	(320)
For the six months ended June 28, 2013
Beginning balance attributable to TRW, net of tax		$	83	$	(559)	$	10	$	(466)
	Other comprehensive losses before reclassifications, net of tax		(117)		(27)		(25)		(169)
	Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax		-		9(b)		(1)		8
Other comprehensive losses, net of tax			(117)		(18)		(26)		(161)
Ending balance attributable to TRW, net of tax		$	(34)	$	(577)	$	(16)	$	(627)
(a)	Includes actuarial gains of $9 million, reduced by prior service cost of $6 million, net of tax of $1 million.
(b)	Includes actuarial gains of $22 million, reduced by prior service cost of $9 million, net of tax of $4 million.

Warranties. Product warranty liabilities are recorded based upon management estimates including such factors as the written agreement with the customer, the length of the warranty period, the historical performance of the product and likely changes in performance of newer products and the mix and volume of products sold. Product warranty liabilities are reviewed on a regular basis and adjusted to reflect actual experience.

The following table presents the movement in the product warranty liability for the periods indicated:
	Six Months Ended
	June 27,		June 28,
	2014		2013
	(Dollars in millions)
Beginning balance	$	152	$	140
Current period accruals, net of changes in estimates		21		26
Used for purposes intended		(21)		(20)
Effects of foreign currency translation		(2)		(3)
Ending balance	$	150	$	143

Recently Adopted Accounting Pronouncements. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the new guidance, discontinued operations and assets held for sale represent a strategic shift that has or will have a major effect on an entity's operations and financial results.  The Company adopted this guidanceduring the second quarter of 2014 and will apply it prospectively to new disposals and new classifications of disposal groups as held for sale.  The adoption of this guidancehad no impact on the Company's financial statements.

Recently Issued Accounting Pronouncements. In May 2014, the FASB issuedASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),”which provides a single revenue recognition model intended to improve comparability over a range of industries, companies and geographical boundaries and is intended to enhance disclosures.  The standard is effective retrospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently reviewing the new standard and assessing the potential impact on its operations and financial statements.

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Segment Information (Tables)

6 Months Ended

Jun. 27, 2014

Segment Information [Abstract]

Schedule Of Segment Reporting Information By Segment [Table Text Block]

		Three Months Ended				Six Months Ended
		June 27,		June 28,		June 27,		June 28,
		2014		2013		2014		2013
		(Dollars in millions)
Sales to external customers:
	Chassis Systems	$	2,954	$	2,985	$	5,825	$	5,710
	Occupant Safety Systems		905		856		1,770		1,700
	Electronics		241		184		460		346
	Automotive Components		493		489		980		971
Total sales to external customers		$	4,593	$	4,514	$	9,035	$	8,727
Intersegment sales:
	Chassis Systems	$	4	$	4	$	7	$	8
	Occupant Safety Systems		38		33		75		66
	Electronics		144		142		293		272
	Automotive Components		19		19		38		37
Total intersegment sales		$	205	$	198	$	413	$	383
Total segment sales:
	Chassis Systems	$	2,958	$	2,989	$	5,832	$	5,718
	Occupant Safety Systems		943		889		1,845		1,766
	Electronics		385		326		753		618
	Automotive Components		512		508		1,018		1,008
Total segment sales		$	4,798	$	4,712	$	9,448	$	9,110
Earnings before taxes:
	Chassis Systems	$	243	$	246	$	435	$	412
	Occupant Safety Systems		89		80		154		112
	Electronics		36		32		72		58
	Automotive Components		39		43		82		88
Segment earnings before taxes			407		401		743		670
Corporate expense and other			(24)		(17)		(52)		(32)
Financing costs			(26)		(34)		(57)		(64)
Loss on retirement of debt — net			-		(5)		-		(5)
Net earnings attributable to noncontrolling interest, net of tax			10		12		20		23
	Earnings before income taxes	$	367	$	357	$	654	$	592
See Note 11 for a summary of restructuring charges and asset impairments by segment.

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Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014
Goodwill [Line Items]
Beginning Balance	$ 1,760
Effects of foreign currency translation	(1)
Ending Balance	1,759
Chassis Systems [Member]
Goodwill [Line Items]
Beginning Balance	1,071
Effects of foreign currency translation	0
Ending Balance	1,071
Occupant Safety Systems [Member]
Goodwill [Line Items]
Beginning Balance	541
Effects of foreign currency translation	(1)
Ending Balance	540
Electronics [Member]
Goodwill [Line Items]
Beginning Balance	148
Effects of foreign currency translation	0
Ending Balance	148
Automotive Components [Member]
Goodwill [Line Items]
Beginning Balance	0
Effects of foreign currency translation	0
Ending Balance	$ 0

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Debt - Exchangable Senior Notes (Detail) (Exchangeable Senior Unsecured Notes Three Point Five Percent Due Twenty Fifteen [Member], USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2009	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013	Dec. 31, 2013
Exchangeable Senior Unsecured Notes Three Point Five Percent Due Twenty Fifteen [Member]
Debt Disclosure [Line Items]
Face amount	$ 259
Interest rate	3.50%
Exchange rate of shares of the Company's common stock per $1,000 principal amount of notes	33.8392
Effective yield	9.00%
Debt discount		11		11		14
Interest expense recognized		3	4	6	7
Interest expense on exchangeable notes, excluding amortization		$ 2	$ 2	$ 3	$ 3
Exchangeable notes sales price condition	$ 38.415

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Consolidated Statements of Earnings (Unaudited) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Consolidated Statements of Earnings (Unaudited)
Sales	$ 4,593	$ 4,514	$ 9,035	$ 8,727
Cost of sales	4,026	3,983	7,968	7,769
Gross profit	567	531	1,067	958
Administrative and selling expenses	169	147	335	288
Restructuring charges and asset impairments	6	1	26	38
Other (income) expense - net	9	(2)	15	(6)
Operating income	383	385	691	638
Interest expense - net	26	34	57	64
Loss on retirement of debt - net	0	5	0	5
Equity in earnings of affiliates, net of tax	(10)	(11)	(20)	(23)
Earnings before income taxes	367	357	654	592
Income tax expense	92	97	170	159
Net earnings	275	260	484	433
Less: Net earnings attributable to noncontrolling interest, net of tax	10	12	20	23
Net earnings attributable to TRW	$ 265	$ 248	$ 464	$ 410
Basic earnings per share:
Earnings per share	$ 2.39	$ 2.09	$ 4.14	$ 3.44
Weighted average shares outstanding	110.8	118.9	112.0	119.2
Diluted earnings per share:
Earnings per share	$ 2.27	$ 1.99	$ 3.95	$ 3.28
Weighted average shares outstanding	117.4	125.8	118.6	126.3

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Pension Plans and Postretirement Benefits Other Than Pensions - Components of Net Pension (Income) Cost (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Pension Plans - U.S.
Pension Plan [Line Items]
Service cost	$ 1	$ 1	$ 1	$ 1
Interest cost on projected benefit obligations	10	10	19	21
Expected return on plan assets	(13)	(14)	(25)	(29)
Amortization	2	6	4	13
Defined benefit plan, net (income) cost	0	3	(1)	6
United Kingdom Foreign Pension Plans Defined Benefit [Member]
Pension Plan [Line Items]
Service cost	0	0	0	0
Interest cost on projected benefit obligations	53	47	105	94
Expected return on plan assets	(87)	(78)	(173)	(156)
Amortization	0	0	0	0
Defined benefit plan, net (income) cost	(34)	(31)	(68)	(62)
Rest Of World Foreign Pension Plans Defined Benefit [Member]
Pension Plan [Line Items]
Service cost	5	5	11	11
Interest cost on projected benefit obligations	8	9	18	18
Expected return on plan assets	(4)	(5)	(9)	(10)
Amortization	3	6	6	10
Defined benefit plan, net (income) cost	$ 12	$ 15	$ 26	$ 29

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013
Operating Activities
Net earnings	$ 484	$ 433
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	220	212
Net pension and other postretirement benefits income and contributions	(112)	(138)
Loss on retirement of debt - net	0	5
Asset Impairment Restructuring Charges	12	0
Deferred income taxes	76	82
Other - net	8	25
Changes in assets and liabilities:
Accounts receivable - net	(619)	(723)
Inventories	(103)	(49)
Trade accounts payable	148	216
Prepaid expenses and other assets	(117)	(22)
Other liabilities	77	52
Net cash provided by (used in) operating activities	74	93
Investing Activities
Capital expenditures, including other intangible assets	(236)	(271)
Investment in non-consolidated joint venture assets	(6)	0
Net cash provided by (used in) investing activities	(242)	(271)
Financing Activities
Change in short-term debt	251	20
Proceeds from issuance of long-term debt, net of fees	0	482
Redemption of long-term debt	(475)	(120)
Proceeds from exercise of stock options	2	19
Payments for repurchase of capital stock	(400)	(200)
Dividends paid to noncontrolling interest	(3)	(15)
Net cash provided by (used in) financing activities	(625)	186
Effect of exchange rate changes on cash	(5)	(17)
Increase (decrease) in cash and cash equivalents	(798)	(9)
Cash and cash equivalents at beginning of period	1,729	1,223
Cash and cash equivalents at end of period	$ 931	$ 1,214

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Share-Based Compensation (Detail) (USD $)	0 Months Ended		6 Months Ended
	May 13, 2014	Feb. 21, 2014	Jun. 27, 2014
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Common stock available for issuance under the Plan			3,349,736
Stock-Settled Stock Appreciation Rights [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Equity instruments other than options granted		850,900
Equity instruments other than options grant date fair market value		$ 82.50
Maximum Value at Exercise		$ 130.00
Equity instruments other than options outstanding			3,618,952
Contractual term			8 years
Vesting period			3 years
Restricted Stock Units [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Equity instruments other than options granted	14,742	284,723
Equity instruments other than options outstanding			693,699
Vesting period			3 years
Phantom Stock Units [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Equity instruments other than options granted		3,365
Equity instruments other than options outstanding			12,650
Vesting period			3 years
Stock Options [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Contractual term			8 years
Vesting period			3 years
Options outstanding			252,197
Performance Units [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Equity instruments other than options granted		46,949
Equity instruments other than options outstanding			46,949
Performance Units [Member] | Minimum [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Total Shareholder Return Target Award Amount		0.00%
Performance Units [Member] | Maximum [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Total Shareholder Return Target Award Amount		150.00%

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Basis of Presentation - Movement in the Product Warranty Liability (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013
Basis of Presentation [Abstract]
Beginning balance	$ 152	$ 140
Current period accruals, net of changes in estimates	21	26
Used for purposes intended	(21)	(20)
Effects of foreign currency translation	(2)	(3)
Ending balance	$ 150	$ 143

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Basis of Presentation (Policies)

6 Months Ended

Jun. 27, 2014

Basis of Presentation [Abstract]

Earnings (Losses) Per Share

Earnings Per Share. Basic earnings per share are calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share reflect the weighted average impact of all potentially dilutive securities from the date of issuance, including stock options, restricted stock units (“RSUs”), stock-settled stock appreciation rights (“SSARs”) and performance stock units (“Performance Units”). Further, if the inclusion of shares potentially issuable for the Company's 3.50% exchangeable senior unsecured notes (see Note 10) is more dilutive than the inclusion of the interest expense for those exchangeable notes, the Company utilizes the “if-converted” method to calculate diluted earnings per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense and amortization of the discount recognized on the exchangeable notes and includes the number of shares potentially issuable related to the exchangeable notes in the weighted average shares outstanding.

If the average market price of the Company's common stock exceeds the exercise price of stock options outstanding or the fair value on the date of grant of the SSARs, the treasury stock method is used to determine the incremental number of shares to be included in the diluted earnings per share computation.

Warranties

Warranties. Product warranty liabilities are recorded based upon management estimates including such factors as the written agreement with the customer, the length of the warranty period, the historical performance of the product and likely changes in performance of newer products and the mix and volume of products sold. Product warranty liabilities are reviewed on a regular basis and adjusted to reflect actual experience.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the new guidance, discontinued operations and assets held for sale represent a strategic shift that has or will have a major effect on an entity's operations and financial results.  The Company adopted this guidanceduring the second quarter of 2014 and will apply it prospectively to new disposals and new classifications of disposal groups as held for sale.  The adoption of this guidancehad no impact on the Company's financial statements.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements. In May 2014, the FASB issuedASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),”which provides a single revenue recognition model intended to improve comparability over a range of industries, companies and geographical boundaries and is intended to enhance disclosures.  The standard is effective retrospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently reviewing the new standard and assessing the potential impact on its operations and financial statements.

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Basis of Presentation - Changes in Equity (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Stockholders Equity Note [Line Items]
Beginning balance of equity	$ 4,198	$ 3,870	$ 4,396	$ 3,769
Net earnings	275	260	484	433
Total other comprehensive earnings (losses)	53	(87)	56	(161)
Dividends paid to noncontrolling interest	0	(13)	(3)	(15)
Changes related to share-based compensation	13	13	6	27
Value of capital stock repurchased	0	(190)	(400)	(200)
Ending balance of equity	4,539	3,853	4,539	3,853
Parent
Stockholders Equity Note [Line Items]
Beginning balance of equity	3,991	3,671	4,194	3,578
Net earnings	265	248	464	410
Total other comprehensive earnings (losses)	55	(88)	60	(161)
Dividends paid to noncontrolling interest	0	0	0	0
Changes related to share-based compensation	13	13	6	27
Value of capital stock repurchased	0	(190)	(400)	(200)
Ending balance of equity	4,324	3,654	4,324	3,654
Noncontrolling Interest
Stockholders Equity Note [Line Items]
Beginning balance of equity	207	199	202	191
Net earnings	10	12	20	23
Total other comprehensive earnings (losses)	(2)	1	(4)	0
Dividends paid to noncontrolling interest	0	(13)	(3)	(15)
Changes related to share-based compensation	0	0	0	0
Value of capital stock repurchased	0	0	0	0
Ending balance of equity	$ 215	$ 199	$ 215	$ 199

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Inventories (Tables)

6 Months Ended

Jun. 27, 2014

Inventories [Abstract]

Major Classes of Inventory [Table Text Block]

3. Inventories
	The major classes of inventory are as follows:
			As of
			June 27,		December 31,
			2014		2013
			(Dollars in millions)
	Finished products and work in process		$	553	$	499
	Raw materials and supplies			566		520
		Total inventories	$	1,119	$	1,019

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Description of Business

6 Months Ended

Jun. 27, 2014

Description of Business [Abstract]

Description of Business

1. Description of Business

TRW Automotive Holdings Corp. (also referred to herein as the “Company”) is among the world's largest and most diversified suppliers of automotive systems, modules and components to global automotive original equipment manufacturers (“OEMs”) and related aftermarkets. The Company conducts substantially all of its operations through subsidiaries. These operations primarily encompass the design, manufacture and sale of active and passive safety related products and systems. Active safety related products and systems principally refer to vehicle dynamic controls (primarily braking and steering), and passive safety related products and systems principally refer to occupant restraints (primarily airbags and seat belts) and safety electronics (primarily electronic control units and crash and occupant weight sensors). The Company is primarily a “Tier 1” supplier (a supplier that sells to OEMs). In 2013, approximately 83% of the Company's end-customer sales were to major OEMs.

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Consolidated Statements of Comprehensive Earnings (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Consolidated Statements of Comprehensive Earnings (Unaudited)
Net earnings	$ 275	$ 260	$ 484	$ 433
Other comprehensive earnings (losses):
Foreign currency translation	33	(30)	33	(117)
Retirement obligations, net of tax	(4)	(33)	(1)	(18)
Deferred cash flow hedges, net of tax	24	(24)	24	(26)
Total other comprehensive earnings (losses)	53	(87)	56	(161)
Comprehensive earnings	328	173	540	272
Less: Comprehensive earnings attributable to noncontrolling interest	8	13	16	23
Comprehensive earnings attributable to TRW	$ 320	$ 160	$ 524	$ 249

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Restructuring Charges and Asset Impairments

6 Months Ended

Jun. 27, 2014

Restructuring Charges And Asset Impairments [Abstract]

Restructuring Charges and Asset Impairments

11. Restructuring Charges and Asset Impairments

Restructuring charges and asset impairments incurred as part of the Company's ongoing effort to better align the Company's cost structure with global automotive market conditions, primarily in the European and North American automotive markets, include the following:

				Occupant
		Chassis		Safety				Automotive
		Systems		Systems		Electronics		Components
		Segment		Segment		Segment		Segment		Corporate		Total
		(Dollars in millions)
For the three months ended June 27, 2014:
	Severance and other charges - net	$	3	$	2	$	-	$	1	$	-	$	6
	Total restructuring charges and asset impairments	$	3	$	2	$	-	$	1	$	-	$	6
For the three months ended June 28, 2013:
	Severance and other charges	$	1	$	-	$	-	$	-	$	-	$	1
	Total restructuring charges and asset impairments	$	1	$	-	$	-	$	-	$	-	$	1
For the six months ended June 27, 2014:
	Severance and other charges - net	$	10	$	2	$	-	$	2	$	-	$	14
	Asset impairments related to restructuring activities		12		-		-		-		-		12
	Total restructuring charges and asset impairments	$	22	$	2	$	-	$	2	$	-	$	26
For the six months ended June 28, 2013:
	Severance and other charges	$	17	$	27	$	-	$	(6)	$	-	$	38
	Total restructuring charges and asset impairments	$	17	$	27	$	-	$	(6)	$	-	$	38

Restructuring Reserves
The following table illustrates the movement of the restructuring reserves for severance and other charges, including reserves related to severance-related postemployment benefits for both periods presented:
			Six Months Ended
			June 27,		June 28,
			2014		2013
			(Dollars in millions)
	Beginning balance		$	88	$	121
		Current period accruals, net of changes in estimates		14		38
		Used for purposes intended		(34)		(43)
		Effects of foreign currency translation		(1)		(1)
	Ending balance		$	67	$	115

Of the $67 million restructuring reserves as of June 27, 2014, approximately $40 million is expected to be paid in the remainder of 2014. The remaining balance is expected to be paid in 2015 to 2016 and is comprised primarily of involuntary employee termination arrangements in Europe.

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Document and Entity Information	6 Months Ended
	Jun. 27, 2014	Jul. 23, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 27, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001267097
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Registrant Name	TRW Automotive Holdings Corp.
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		111,237,505
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

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Capital Stock

6 Months Ended

Jun. 27, 2014

Capital Stock [Abstract]

Capital Stock

12. Capital Stock

The Company's authorized capital stock consists of (i) 500 million shares of common stock, par value $.01 per share (the “Common Stock”), of which 110,884,083 shares were issued and outstanding as of June 27, 2014, net of 4,668 shares of treasury stock withheld at cost to satisfy tax obligations for a specific grant under the Company's stock-based compensation plan; and (ii) 250 million shares of preferred stock, par value $.01 per share, including 500,000 shares of Series A junior participating preferred stock, of which no shares are currently issued or outstanding.

From time to time, capital stock is issued in conjunction with the exercise of stock options and stock-settled stock appreciation rights and the vesting of restricted stock units issued as part of the Company's stock incentive plan (see Note 13).

Share Repurchase Programs. The Company has two share repurchase programs in place, consisting of a $2 billion program that extends through December 31, 2016 (the “$2 Billion Program”), and a program that is intended to offset, on an ongoing basis, the dilution created by the Company's stock incentive plan for up to 1.5 million shares in 2014 and each subsequent year (the “Anti-Dilution Program”). The Anti-Dilution program does not have an expiration date. The Company is not obligated to repurchase any shares under either program.

In the first quarter of 2014,the Company entered into an accelerated share repurchase (“ASR”) agreement with a third-party financial institution to repurchase the Company's common stock. Under the ASR agreement, the Company made an up-front payment of $400 million and received an initial delivery of approximately 3.9 million shares in the first quarterof 2014. The total number of shares to be ultimately delivered, and therefore the average price paid per share, will be determined at the end of the repurchase period based on the volume weighted average price of the Company's common stock during that period. The ASR is expected be completed by the end of the third quarter of 2014.

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Millions, unless otherwise specified	Jun. 27, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 931	$ 1,729
Accounts receivable - net	3,078	2,478
Inventories	1,119	1,019
Prepaid expenses and other current assets	473	402
Total current assets	5,601	5,628
Property, plant and equipment - net of accumulated depreciation of $4,603 and $4,420, respectively	2,734	2,718
Goodwill	1,759	1,760
Intangible Assets Net Excluding Goodwill	289	292
Pension assets	1,189	1,059
Other assets	861	795
Total assets	12,433	12,252
Current liabilities:
Short-term debt	406	159
Current portion of long-term debt	37	482
Trade accounts payable	2,729	2,597
Accrued compensation	277	285
Other current liabilities	1,308	1,232
Total current liabilities	4,757	4,755
Long-term debt	1,449	1,473
Postretirement benefits other than pensions	369	375
Pension benefits	654	676
Other long-term liabilities	665	577
Total liabilities	7,894	7,856
Stockholders' equity:
Capital stock	1	1
Paid-in-capital	1,641	1,715
Retained earnings	3,002	2,858
Accumulated other comprehensive earnings (losses)	(320)	(380)
Total TRW stockholders' equity	4,324	4,194
Noncontrolling interest	215	202
Total equity	4,539	4,396
Total liabilities and equity	$ 12,433	$ 12,252

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Other (Income) Expense - Net

6 Months Ended

Jun. 27, 2014

Other (Income) Expense - Net [Abstract]

Other (Income) Expense - Net

6. Other Expense (Income) — Net
	The following table provides details of other expense (income) — net:
			Three Months Ended				Six Months Ended
			June 27,		June 28,		June 27,		June 28,
			2014		2013		2014		2013
			(Dollars in millions)
	Net provision for bad debts		$	3	$	-	$	4	$	2
	Net gains on sales of assets and divestitures			-		-		-		(1)
	Foreign currency exchange losses			5		8		13		6
	Royalty and grant income			(6)		(5)		(9)		(6)
	Miscellaneous other expense (income)			7		(5)		7		(7)
		Other expense (income) — net	$	9	$	(2)	$	15	$	(6)

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Goodwill and Intangible Assets

6 Months Ended

Jun. 27, 2014

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

Goodwill

The changes in goodwill for the period are as follows:

			Occupant
	Chassis		Safety				Automotive
	Systems		Systems		Electronics		Components
	Segment		Segment		Segment		Segment		Total
	(Dollars in millions)
Balance as of December 31, 2013	$	1,071	$	541	$	148	$	-	$	1,760
Effects of foreign currency translation		-		(1)		-		-		(1)
Balance as of June 27, 2014	$	1,071	$	540	$	148	$	-	$	1,759

Intangible assets
	The following table reflects intangible assets and related accumulated amortization:
		As of June 27, 2014						As of December 31, 2013
		Gross				Net		Gross				Net
		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
			(Dollars in millions)
Definite-lived intangible assets:
	Developed technology and other intangible assets	$	118		(93)	$	25	$	119	$	(91)	$	28
Indefinite-lived intangible assets:
	Trademarks		264				264		264				264
Total		$	382			$	289	$	383			$	292

The Company expects that ongoing amortization expense will approximate the following:
		(Dollars in millions)
	Remainder of 2014	$	2
	Fiscal year 2015		3
	2016 and beyond		20
The expected amortization expense for 2016 and beyond primarily relates to land use rights.

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Basis of Presentation (Tables)

6 Months Ended

Jun. 27, 2014

Basis of Presentation [Abstract]

Net Earnings (Losses) Attributable to TRW and the Weighted Average Shares Outstanding [Table Text Block]

Net earnings attributable to TRW and the weighted average shares outstanding used in calculating basic and diluted earnings per share were:
			Three Months Ended				Six Months Ended
			June 27,		June 28,		June 27,		June 28,
			2014		2013		2014		2013
			(In millions, except per share amounts)
	Net earnings attributable to TRW		$	265	$	248	$	464	$	410
	Interest expense on exchangeable notes, net of tax			1		1		2		2
	Amortization of discount on exchangeable notes, net of tax			1		1		2		2
	Net earnings attributable to TRW for purposes of calculating diluted earnings per share		$	267	$	250	$	468	$	414
	Basic:
		Weighted average shares outstanding		110.8		118.9		112.0		119.2
		Basic earnings per share	$	2.39	$	2.09	$	4.14	$	3.44
	Diluted:
		Weighted average shares outstanding		110.8		118.9		112.0		119.2
		Effect of dilutive stock options, RSUs and SSARs		1.6		1.0		1.6		1.2
		Shares applicable to exchangeable notes		5.0		5.9		5.0		5.9
		Diluted weighted average shares outstanding		117.4		125.8		118.6		126.3
		Diluted earnings per share	$	2.27	$	1.99	$	3.95	$	3.28

Movement in the Product Warranty Liability [Table Text Block]

The following table presents the movement in the product warranty liability for the periods indicated:
	Six Months Ended
	June 27,		June 28,
	2014		2013
	(Dollars in millions)
Beginning balance	$	152	$	140
Current period accruals, net of changes in estimates		21		26
Used for purposes intended		(21)		(20)
Effects of foreign currency translation		(2)		(3)
Ending balance	$	150	$	143

Changes in Equity [Table Text Block]

Equity. The following tables present a rollforward of the changes in equityattributable to TRW shareholders and to the noncontrolling interest.

	Three Months Ended
	June 27, 2014						June 28, 2013
	Total		TRW Shareholders		Noncontrolling Interest		Total		TRW Shareholders		Noncontrolling Interest
	(Dollars in millions)
Beginning balance of equity	$	4,198	$	3,991	$	207	$	3,870	$	3,671	$	199
Net earnings		275		265		10		260		248		12
Other comprehensive earnings (losses)		53		55		(2)		(87)		(88)		1
Dividends paid to noncontrolling interest		-		-		-		(13)		-		(13)
Changes related to share-based compensation		13		13		-		13		13		-
Repurchase of capital stock		-		-		-		(190)		(190)		-
Ending balance of equity	$	4,539	$	4,324	$	215	$	3,853	$	3,654	$	199

	Six Months Ended
	June 27, 2014						June 28, 2013
	Total		TRW Shareholders		Noncontrolling Interest		Total		TRW Shareholders		Noncontrolling Interest
	(Dollars in millions)
Beginning balance of equity	$	4,396	$	4,194	$	202	$	3,769	$	3,578	$	191
Net earnings		484		464		20		433		410		23
Other comprehensive earnings (losses)		56		60		(4)		(161)		(161)		-
Dividends paid to noncontrolling interest		(3)		-		(3)		(15)		-		(15)
Changes related to share-based compensation		6		6		-		27		27		-
Repurchase of capital stock		(400)		(400)		-		(200)		(200)		-
Ending balance of equity	$	4,539	$	4,324	$	215	$	3,853	$	3,654	$	199

Schedule Of Accumulated Other Comprehensive Income Loss [Table Text Block]

The following tables present changes in accumulated other comprehensive earnings (losses)attributable to TRW by component:

		Foreign Currency Translation		Retirement Obligations		Deferred Cash Flow Hedges		Total
		(Dollars in millions)
For the three months ended June 27, 2014:
Beginning balance attributable to TRW, net of tax		$	43	$	(402)	$	(16)	$	(375)
	Other comprehensive earnings (losses) before reclassifications, net of tax		35		(5)		23		53
	Amounts reclassified from accumulated other comprehensive earnings, net of tax		-		1(a)		1		2
Other comprehensive earnings (losses), net of tax			35		(4)		24		55
Ending balance attributable to TRW, net of tax		$	78	$	(406)	$	8	$	(320)
For the three months ended June 28, 2013:
Beginning balance attributable to TRW, net of tax		$	(3)	$	(544)	$	8	$	(539)
	Other comprehensive losses before reclassifications, net of tax		(31)		(37)		(23)		(91)
	Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax		-		4(b)		(1)		3
Other comprehensive losses, net of tax			(31)		(33)		(24)		(88)
Ending balance attributable to TRW, net of tax		$	(34)	$	(577)	$	(16)	$	(627)
(a)	Includes actuarial gains of $5 million, reduced by prior service cost of $3 million, net of tax of $1 million.
(b)	Includes actuarial gains of $10 million, reduced by prior service cost of $4 million, net of tax of $2 million.

		Foreign Currency Translation		Retirement Obligations		Deferred Cash Flow Hedges		Total
		(Dollars in millions)
For the six months ended June 27, 2014:
Beginning balance attributable to TRW, net of tax		$	41	$	(405)	$	(16)	$	(380)
	Other comprehensive earnings (losses) before reclassifications, net of tax		37		(3)		20		54
	Amounts reclassified from accumulated other comprehensive earnings, net of tax		-		2(a)		4		6
Other comprehensive earnings (losses), net of tax			37		(1)		24		60
Ending balance attributable to TRW, net of tax		$	78	$	(406)	$	8	$	(320)
For the six months ended June 28, 2013
Beginning balance attributable to TRW, net of tax		$	83	$	(559)	$	10	$	(466)
	Other comprehensive losses before reclassifications, net of tax		(117)		(27)		(25)		(169)
	Amounts reclassified from accumulated other comprehensive earnings (losses), net of tax		-		9(b)		(1)		8
Other comprehensive losses, net of tax			(117)		(18)		(26)		(161)
Ending balance attributable to TRW, net of tax		$	(34)	$	(577)	$	(16)	$	(627)
(a)	Includes actuarial gains of $9 million, reduced by prior service cost of $6 million, net of tax of $1 million.
(b)	Includes actuarial gains of $22 million, reduced by prior service cost of $9 million, net of tax of $4 million.

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Share-Based Compensation

6 Months Ended

Jun. 27, 2014

Share-Based Compensation [Abstract]

Share-Based Compensation

13. Share-Based Compensation

Equity Awards

On February 21, 2014, the Company granted 850,900 SSARs to executive officers and certain employees of the Company pursuant to theTRW Automotive Holdings Corp. 2012 Stock Incentive Plan (the “2012 Plan”). Each SSAR entitles the grantee to receive the appreciation in value of one underlying share of the Company's stock from the grant date fair market value of $82.50 to the fair market value on the exercise date, although the stock price at exercise is limited to a maximum value of $130.00.

On February 21, 2014, the Company also granted 284,723 RSUs to executive officers and certain employees of the Company pursuant to the 2012Plan and3,365 phantom stock units (“PSUs”) to certain other employees of the Company. Each PSU entitles the grantee to receive a cash payment upon vesting equal to the fair market value on the vesting date of one share of the Company's common stock.

In addition, on February 21, 2014, the Company granted 46,949 Performance Unitsto executive officers. The number of Performance Units that will be earned will be based on the Company's achievement of total shareholder return (“TSR”) over a three-year period relative to automotive parts companies within the Russell 3000Index,and the number of units can vary from 0% to 150% of the target award amount. The three-year performance period ends on December 31, 2016, andany Performance Units earned will be settled in shares of the Company's common stock.

On May 13, 2014, the Company granted 14,742 RSUs to independent directors of the Company pursuant to the 2012 Plan.

As of June 27, 2014, the Company had 3,349,736 shares of Common Stock available for issuance under the 2012 Plan. In addition,252,197 stock options,3,618,952SSARs,693,699nonvested RSUs,12,650 nonvested PSUs and 46,949 nonvested Performance Units were outstanding as of June 27, 2014. All of the SSARs andstock options have an 8-year term and vest ratably over three years, substantially all of the RSUsvest ratably over three years and a majority of the PSUs cliff vest after three years.As a result of changes to retirement provisions in the equity award agreements beginning in 2013,the Company applies a non-substantive vesting period approach for certain of the awards granted in 2014 and 2013 whereby expense is accelerated for those employees who receive awards and are eligible to retire prior to the award vesting.

Share-based compensation expense recognized for the Plan was as follows:
		Three Months Ended				Six Months Ended
		June 27,		June 28,		June 27,		June 28,
		2014		2013		2014		2013
		(Dollars in millions)
Stock options and SSARs		$	3	$	4	$	5	$	6
RSUs			7		6		12		15
Performance Units			1		-		2		-
	Total share-based compensation expense	$	11	$	10	$	19	$	21

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Fair Value Measurements and Financial Instruments

6 Months Ended

Jun. 27, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments [Text Block]

9. Fair Value Measurements and Financial Instruments

The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. This hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs, as follows:

       Level 1. Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

       Level 2.Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly.

       Level 3. Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the Company's best assumptions of how market participants would price the assets or liabilities.

Items Measured at Fair Value on a Recurring Basis

The fair value measurements for assets and liabilities recognized in the Company's condensed consolidated balance sheets are as follows:

	As of
	June 27, 2014		December 31, 2013		Measurement Approach
	(Dollars in millions)
Foreign currency exchange contracts — current assets	$	12	$	6	Level 2
Foreign currency exchange contracts — noncurrent assets		10		-	Level 2
Foreign currency exchange contracts — current liability		3		5	Level 2
Foreign currency exchange contracts — noncurrent liability		1		9	Level 2

The Company's foreign currency exchange contracts are recorded at fair value derived principally from or corroborated by observable market data under the market approach. Inputs include quoted prices for similar assets and liabilities (risk adjusted), and market-corroborated inputs, such as market comparables, interest rates, yield curves and other items that allow value to be determined. The Company uses quoted currency forward rates to calculate forward values, and then discounts the forward values. In addition, the Company's calculation of the fair value of its foreign currency option contracts uses quoted currency volatilities.

The discount rates for all derivative contracts are based on quoted bank deposit. For contracts which, when aggregated by counterparty, are in a liability position, the rates are adjusted by the credit spread which market participants would apply if buying these contracts from the Company's counterparties.

There were no changes in the Company's valuation techniques during the six months ended June 27, 2014.

Items Measured at Fair Value on a Nonrecurring Basis

In addition to items that are measured at fair value on a recurring basis,we also have assets that may be measured at fair value on a nonrecurring basis. These assets include long-lived assets, intangible assets and investments in affiliates, which may be written down to fair value as a result of impairment.

The Company has determined that the fair value measurements related to each of these assets rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets, as observable inputs are not available. As such, the Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the useful life of the long-lived assets by using a risk-adjusted rate for the Company. For the six months ended June 27, 2014, the Company recorded asset impairments of $12million associated with its determination of the fair value of its long-lived assets that exhibited indicators of impairment (see Note 11).

Financial Instruments Not Carried at Fair Value

       The carrying value and estimated fair value of financial instruments that are not carried on the Company's balance sheet at fair value are as follows:

	As of
	June 27, 2014				December 31, 2013
		Carrying	Fair		Carrying			Fair	Measurement
		Value	Value		Value			Value	Approach
	(Dollars in millions)
Short-term debt, fixed and floating rate	$	406	$	406	$	159	$	159	Level 2
Fixed rate long-term debt	$	1,349	$	1,466	$	1,821	$	1,884	Level 2
Fixed rate exchangeable notes	$	137	$	448	$	134	$	375	Level 2

The carrying value of short-term debt approximates fair value because of the short term nature of these instruments. The fair value of long term debt was determined primarily from quoted market prices, as provided by participants in the secondary marketplace. For long-term debt without a quoted market price, the Company estimates the fair value using discounted cash flow models with market based borrowing rates for similar types of arrangements.

Derivative Instruments and Hedging Activities

The Company is exposed to fluctuations in foreign currency exchange rates, interest rates and commodity prices. The Company enters into derivative instruments primarily to hedge portions of its forecasted foreign currency denominated cash flows and designates these derivative instruments as cash flow hedges in order to qualify for hedge accounting. Certain foreign exchange contracts that do not qualify for hedge accounting are entered into to hedge recognized foreign currency transactions. All gains or losses on derivative instruments which are not designated for hedge accounting treatment or do not qualify for hedge accounting, or result from hedge ineffectiveness, are reported in earnings immediately.

In addition, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the derivative financial instruments. The Company attempts to limit this exposure by entering into agreements directly with a number of major financial institutions that meet the Company's credit standards and that are expected to fully satisfy their obligations under the contracts, and by monitoring the Company's credit exposure to each counterparty in light of its current credit quality.

As of June 27, 2014, the Company had a notional value of $2.6 billion in foreign exchange contracts outstanding. These foreign exchange contracts mature at various dates through May 2017.

Cash Flow Hedges. For any derivative instrument that is designated and qualifies as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of Other Comprehensive Income (“OCI”), and is subsequently reclassified into earnings in the period which the hedged transaction affects earnings. The earnings impact is reported either in sales, cost of sales, or other expense (income) ‒ net, to match the underlying transaction. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, which were immaterial for each of the three and six month periods ended June 27, 2014 and June 28, 2013, are recognized in other expense (income)‒net.

The effective portion of gains and losses on derivatives designated as cash flow hedges and recognized in OCI was a gain of $28 million and $25 million for the three and six month periods ended June 27, 2014, respectively, compared to a loss of $33 million for both the three and six month periods ended June 28, 2013, all of which were related to foreign currency exchange contracts.

The effective portion of gains and losses on cash flow hedges reclassified from OCI into the statement of earnings for the three and six month periods ended June 27, 2014 was a loss of $2 million and loss of $5 million, respectively, and was included in various line items on the statement of earnings, compared to a gain of $1 million for both the three and six month periods ended June 28, 2013.

Gains and losses reclassified into earnings include the discontinuance of cash flow hedges, which were immaterial for each of the three and six months ended June 27, 2014 and June 28, 2013. Approximately $4 million of gains, net of tax, which are included in OCI, are expected to be reclassified into earnings in the next twelve months.

Undesignated Derivatives. For the three and six months ended June 27, 2014, the Company recognized losses of $4 million and $3 million, respectively, in other expense (income) ‒ net, for derivative instruments not designated as hedging instruments. For the three and six months ended June 28, 2013, the Company recognized losses of $2 million and $3 million, respectively, in other expense (income)‒net, for derivative instruments not designated as hedging instruments.

Credit-Risk-Related Contingent Features. The Company has entered into International Swaps and Derivatives Association (“ISDA”) agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require the Company to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position.

Offsetting of Derivative Assets and Liabilities
	The following table reflects the offsetting of derivative assets and liabilities:
		As of June 27, 2014						As of December 31, 2013
		Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Reported		Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Reported
			(Dollars in millions)
Derivative Assets:
	Foreign Currency	$	54	$	(32)	$	22	$	42	$	(36)	$	6
Derivative Liabilities:
	Foreign Currency		36		(32)		4		50		(36)		14

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Share-Based Compensation - Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Share based compensation expense	$ 11	$ 10	$ 19	$ 21
Employee Stock Options And Stock Settled Stock Appreciation Rights (Ssars) [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Share based compensation expense	3	4	5	6
Restricted Stock Units [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Share based compensation expense	7	6	12	15
Performance Units [Member]
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Share based compensation expense	$ 1	$ 0	$ 2	$ 0

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Income Taxes

6 Months Ended

Jun. 27, 2014

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.

Income tax expense for the three months ended June 27, 2014 was $92 million on pre-tax earnings of $367 million and income tax expense for the six months ended June 27, 2014 was $170 million on pre-tax earnings of $654 million. Income tax expense for the three months ended June 28, 2013 was $97 million on pre-tax earnings of $357 million and income tax expense for the six months ended June 28, 2013 was $159 million on pre-tax earnings of $592 million. Income tax expense for the three and six month periods ended June 27, 2014 includes a $6 million net tax benefit related to a favorable ruling and the resolution of various tax matters in foreign jurisdictions. Income tax expense for the three months ended June 28, 2013 includes a net tax benefit of $4 million relating to the resolution of various tax matters in foreign jurisdictions. Income tax expense for the six months ended June 28, 2013 includes a tax benefit of $12 million relating to the enactment of the American Taxpayer Relief Act of 2012 (the “Act”), partially offset by other discrete items, resulting in a net tax benefit of $8 million for the period. The Act was enacted on January 2, 2013 and retroactively reinstated and extended various tax provisions, including the research and development tax credit and the look through rules for controlled foreign corporations. For the periods ended June 27, 2014 and June 28, 2013, the income tax rate varies from the United States statutory income tax rate primarily due to favorable foreign tax rates, holidays, and credits, as well as the effect of the various items noted above.

The Company operates in multiple jurisdictions throughout the world and the income tax returns of several subsidiaries in various tax jurisdictions are currently under examination. Although it is not possible to predict the timing of the conclusions of all ongoing tax audits with accuracy, it is possible that some or all of these examinations will conclude within the next 12 months. It is also reasonably possible that certain statute of limitations may expire relating to various foreign jurisdictions within the next 12 months. As such, it is possible that a change in the Company's gross unrecognized tax benefits may occur; however, it is not possible to reasonably estimate the potential change in gross unrecognized tax benefits.

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Pension Plans and Postretirement Benefits Other Than Pensions

6 Months Ended

Jun. 27, 2014

Pension Plans and Postretirement Benefits Other Than Pensions [Abstract]

Pension Plans and Postretirement Benefits Other Than Pensions

8. Pension Plans and Postretirement Benefits Other Than Pensions
Pension Plans
The following tables provide the components of net pension (income) cost for the Company’s defined benefit pension plans:
	Three Months Ended
	June 27, 2014						June 28, 2013
					Rest of						Rest of
	U.S.		U.K.		World		U.S.		U.K.		World
	(Dollars in millions)
Service cost	$	1	$	-	$	5	$	1	$	-	$	5
Interest cost on projected benefit obligations		10		53		8		10		47		9
Expected return on plan assets		(13)		(87)		(4)		(14)		(78)		(5)
Amortization		2		-		3		6		-		6
Net pension (income) cost	$	-	$	(34)	$	12	$	3	$	(31)	$	15

	Six Months Ended
	June 27, 2014						June 28, 2013
					Rest of						Rest of
	U.S.		U.K.		World		U.S.		U.K.		World
	(Dollars in millions)
Service cost	$	1	$	-	$	11	$	1	$	-	$	11
Interest cost on projected benefit obligations		19		105		18		21		94		18
Expected return on plan assets		(25)		(173)		(9)		(29)		(156)		(10)
Amortization		4		-		6		13		-		10
Net pension (income) cost	$	(1)	$	(68)	$	26	$	6	$	(62)	$	29

Postretirement Benefits Other Than Pensions ("OPEB")
The following tables provide the components of net OPEB cost (income) for the Company's plans:
	Three Months Ended
	June 27, 2014				June 28, 2013
			Rest of				Rest of
	U.S.		World		U.S.		World
	(Dollars in millions)
Interest cost on projected benefit obligations	$	4	$	1	$	4	$	1
Amortization		(3)		(1)		(3)		(2)
Settlement		-		-		(2)		-
Net OPEB cost (income)	$	1	$	-	$	(1)	$	(1)

	Six Months Ended
	June 27, 2014				June 28, 2013
			Rest of				Rest of
	U.S.		World		U.S.		World
	(Dollars in millions)
Interest cost on projected benefit obligations	$	8	$	2	$	7	$	2
Amortization		(5)		(3)		(7)		(2)
Settlement		-		-		(6)		-
Net OPEB cost (income)	$	3	$	(1)	$	(6)	$	-

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Debt

6 Months Ended

Jun. 27, 2014

Debt [Abstract]

Debt

10. Debt
Total outstanding debt of the Company consisted of the following:
			As of
			June 27,		December 31,
			2014		2013
			(Dollars in millions)
	Short-term debt		$	406	$	159
	Long-term debt:
	6.375% Senior Notes, due 2014		$	-	$	234
	7.00% Senior Notes, due 2014			-		233
	7.25% Senior Notes, due 2017			445		446
	4.50% Senior Notes, due 2021			400		400
	4.45% Senior Notes, due 2023			400		400
	Exchangeable senior notes, due 2015			137		134
	Revolving credit facility			-		-
	Capitalized leases			17		18
	Other long-term borrowings			87		90
		Total long-term debt		1,486		1,955
	Less current portion			37		482
		Long-term debt, net of current portion	$	1,449	$	1,473

Senior Notes

4.45% Senior Notes.In November 2013, the Company issued $400 million in aggregate principal amount of 4.45% senior unsecured notes due 2023 in a private placement. Interest is payable semi-annually on December 1 and June 1 of each year.

4.50% Senior Notes.In February 2013, the Company issued $400 million in aggregate principal amount of 4.50% senior unsecured notes due 2021 in a private placement. Interest is payable semi-annually on March 1 and September 1 of each year.

7.25% Senior Notes.In March 2007, the Company issued $600 million in aggregate principal amount of 7.25% senior unsecured notes due 2017 in a private placement. Interest is payable semi-annually on March 15 and September 15 of each year.

6.375% Senior Notes and 7.00% Senior Notes Issued in 2007.On March 15, 2014, the 6.375% SeniorNotes and 7.00% Senior Notes matured and the Company paid the principal amounts outstanding of €170 million and $233 million, respectively.

Exchangeable Senior Notes

In November 2009, the Company issued approximately $259 million in aggregate principal amount of 3.50% exchangeable senior unsecured notes due 2015 (the “Exchangeable Senior Notes”) in a private placement. Prior to September 1, 2015, the notes are exchangeable only upon specified events or conditions being met and, thereafter, at any time. One condition was met as of June 27, 2014, and as such, the notes are exchangeable in the third quarter of 2014. They will remain exchangeable in subsequent quarters if the condition continues to be met, which occurs if the last reported sale price of the Company's common stock for at least 20 of the last 30 trading days of the immediately preceding quarter is greater than $38.415, subject to adjustment. The initial exchange rate is 33.8392 shares of the Company's common stock per $1,000 principal amount of notes. The Company's exchange obligation may be settled, at its option, in shares of its stock, cash or a combination of cash and shares of its stock. Interest is payable on June 1 and December 1 of each year. The Exchangeable Senior Notes will mature on December 1, 2015, unless earlier exchanged, repurchased by the Company at the holder's option upon a fundamental change, or optionally redeemed by the Company as provided in the indenture.

The Exchangeable Senior Notes were recorded with a debt discount which decreased debt and increased paid-in-capital in order to separate the liability and embedded equity components. The debt component will accrete up to the principal amount to effectively yield 9.0% over the term of the debt. The debt discount as of June 27, 2014 and December 31, 2013 was $11 million and $14 million, respectively. The total interest expense recognized for the three and six months ended June 27, 2014 was approximately $3 million and $6 million, respectively, including $2 million and $3 million in each respective period relating to the stated coupon rate. The total interest expense recognized for the three and six months ended June 28, 2013 was approximately $4 million and $7 million, respectively, including $2 million and $3 million in each respective period relating to the stated coupon rate.

Senior Credit Facilities

The Company's Eighth Amended and Restated Credit Agreement dated September 28, 2012 (the “Eighth Credit Agreement”) provides for senior credit facilities consisting of (i) a revolving credit facility in the amount of $1.4 billion which matures in September 2017, subject to certain liquidity conditions being met in October 2016 (the “Revolving Credit Facility”), and (ii) additional availability which may be used in the future for one or more term loans or additional revolving facilities (together with the Revolving Credit Facility, the “Facilities”). All of the Facilities are undrawn.

The commitment fee and the applicable margin for borrowing on the Revolving Credit Facility are subject to a ratings-based grid. The applicable margin in effect as of June 27, 2014 was0.25% with respect to base rate borrowings,1.25% with respect to eurocurrency borrowings, and the commitment fee on the undrawn amounts under the Revolving Credit Facility was 0.25%.

Debt Repurchases

As market conditions warrant, the Company may from time to time repurchase debt securities,including exchangeable debt securities, issued by the Company or its subsidiaries, in privately negotiated or open market transactions, by tender offer, exchange offer, or by other means, or the Company may optionally redeem such debt securities.

Other Borrowings

The Company has borrowings under uncommitted credit agreements in several of the countries in which it operates. The borrowings are from various individual banks at quoted market interest rates. As of June 27, 2014, the Company had short-term borrowings under uncommitted credit facilities totaling $397 million.

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Basis of Presentation - Net Earnings Attributable to TRW and the Weighted Average Shares Outstanding (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Earnings Per Share Disclosure [Line Items]
Net earnings attributable to TRW	$ 265	$ 248	$ 464	$ 410
Interest expense on exchangeable notes, net of tax	1	1	2	2
Amortization of discount on exchangeable notes, net of tax	1	1	2	2
Net earnings attributable to TRW for purposes of calculating diluted earnings per share	$ 267	$ 250	$ 468	$ 414
Basic:
Weighted average shares outstanding	110.8	118.9	112.0	119.2
Basic earnings per share	$ 2.39	$ 2.09	$ 4.14	$ 3.44
Diluted:
Weighted average shares outstanding	110.8	118.9	112.0	119.2
Effect of dilutive stock options, RSUs and SSARs	1.6	1.0	1.6	1.2
Shares applicable to exchangeable notes	5.0	5.9	5.0	5.9
Diluted weighted average shares outstanding	117.4	125.8	118.6	126.3
Diluted earnings per share	$ 2.27	$ 1.99	$ 3.95	$ 3.28

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Debt - Total Outstanding Debt (Detail) (USD $) In Millions, unless otherwise specified	Jun. 27, 2014	Dec. 31, 2013
Debt Disclosure [Line Items]
Short-term debt	$ 406	$ 159
Long-term debt:
Exchageable Notes	137	134
Revolving Credit Facility	0	0
Capitalized leases	17	18
Other borrowings	87	90
Total long-term debt	1,486	1,955
Less current portion	37	482
Long-term debt, net of current portion	1,449	1,473
Senior Notes 6.375% Due 2014 [Member]
Long-term debt:
Senior Notes	0	234
Senior Notes 4.50% Due 2021 [Member]
Long-term debt:
Senior Notes	400	400
Senior Notes 7.00% Due 2014 [Member]
Long-term debt:
Senior Notes	0	233
Senior Notes 7.25% Due 2017 [Member]
Long-term debt:
Senior Notes	445	446
Senior Notes 4.45% Due 2023 [Member]
Long-term debt:
Senior Notes	$ 400	$ 400

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Segment Information

6 Months Ended

Jun. 27, 2014

Segment Information [Abstract]

Segment Information

15.Segment Information

The following tables present certain financial information by segment:

		Three Months Ended				Six Months Ended
		June 27,		June 28,		June 27,		June 28,
		2014		2013		2014		2013
		(Dollars in millions)
Sales to external customers:
	Chassis Systems	$	2,954	$	2,985	$	5,825	$	5,710
	Occupant Safety Systems		905		856		1,770		1,700
	Electronics		241		184		460		346
	Automotive Components		493		489		980		971
Total sales to external customers		$	4,593	$	4,514	$	9,035	$	8,727
Intersegment sales:
	Chassis Systems	$	4	$	4	$	7	$	8
	Occupant Safety Systems		38		33		75		66
	Electronics		144		142		293		272
	Automotive Components		19		19		38		37
Total intersegment sales		$	205	$	198	$	413	$	383
Total segment sales:
	Chassis Systems	$	2,958	$	2,989	$	5,832	$	5,718
	Occupant Safety Systems		943		889		1,845		1,766
	Electronics		385		326		753		618
	Automotive Components		512		508		1,018		1,008
Total segment sales		$	4,798	$	4,712	$	9,448	$	9,110
Earnings before taxes:
	Chassis Systems	$	243	$	246	$	435	$	412
	Occupant Safety Systems		89		80		154		112
	Electronics		36		32		72		58
	Automotive Components		39		43		82		88
Segment earnings before taxes			407		401		743		670
Corporate expense and other			(24)		(17)		(52)		(32)
Financing costs			(26)		(34)		(57)		(64)
Loss on retirement of debt — net			-		(5)		-		(5)
Net earnings attributable to noncontrolling interest, net of tax			10		12		20		23
	Earnings before income taxes	$	367	$	357	$	654	$	592
See Note 11 for a summary of restructuring charges and asset impairments by segment.

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Other (Income) Expense - Net (Tables)

6 Months Ended

Jun. 27, 2014

Other (Income) Expense - Net [Abstract]

Other Income And Expense Net Disclosure [Table Text Block]

6. Other Expense (Income) — Net
	The following table provides details of other expense (income) — net:
			Three Months Ended				Six Months Ended
			June 27,		June 28,		June 27,		June 28,
			2014		2013		2014		2013
			(Dollars in millions)
	Net provision for bad debts		$	3	$	-	$	4	$	2
	Net gains on sales of assets and divestitures			-		-		-		(1)
	Foreign currency exchange losses			5		8		13		6
	Royalty and grant income			(6)		(5)		(9)		(6)
	Miscellaneous other expense (income)			7		(5)		7		(7)
		Other expense (income) — net	$	9	$	(2)	$	15	$	(6)

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Financial Instruments (Detail) (USD $)	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended
	Jun. 27, 2014 Not Designated as Hedging Instrument Other Income And Expense [Member]	Jun. 28, 2013 Not Designated as Hedging Instrument Other Income And Expense [Member]	Jun. 27, 2014 Not Designated as Hedging Instrument Other Income And Expense [Member]	Jun. 28, 2013 Not Designated as Hedging Instrument Other Income And Expense [Member]	Jun. 27, 2014 Foreign Exchange Contract	Jun. 27, 2014 Cash Flow Hedging	Mar. 29, 2013 Cash Flow Hedging	Jun. 27, 2014 Cash Flow Hedging	Jun. 28, 2013 Cash Flow Hedging
Derivative [Line Items]
Notional value					$ 2,600,000,000
Gains included in OCI expected to be reclassified into earnings in the next twelve months, net of tax						4,000,000
Effective portion of the gain (loss) on derivatives designated as cash flow hedges that was recognized in OCI						28,000,000	(33,000,000)	25,000,000	(33,000,000)
Effective portion of gain (loss) on hedges reclassified from OCI into the statements of earnings						(2,000,000)	1,000,000	(5,000,000)	1,000,000
Gain (loss) recognized in current earnings	$ (4,000,000)	$ (2,000,000)	$ (3,000,000)	$ (3,000,000)

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Goodwill and Intangible Assets and Related Accumulated Amortization (Detail) (USD $) In Millions, unless otherwise specified	Jun. 27, 2014	Dec. 31, 2013
Intangible Assets by Major Class [Line Items]
Intangible Assets Gross Excluding Goodwill	$ 382	$ 383
Intangible Assets Net Excluding Goodwill	289	292
Indefinite-lived intangible:
Trademarks	264	264
Developed Technology And Other Intangible Assets [Member]
Definite-lived intangible assets:
Definite-lived intangibles Gross Carrying amount	118	119
Definite-lived intangibles Accumulated Amortization	(93)	(91)
Definite-lived intangibles Net Carrying Amount	$ 25	$ 28

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Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Millions, unless otherwise specified	Jun. 27, 2014	Dec. 31, 2013
Condensed Consolidated Balance Sheets (Unaudited)
Accumulated depreciation on Property, plant and equipment	$ 4,603	$ 4,420

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Investment in Joint Venture Affiliate

6 Months Ended

Jun. 27, 2014

Investment in Joint Venture Affiliate [Abtract]

Investment in Joint Venture Affiliate [Text Block]

In the second quarter of 2014, the Company made an initial equity contribution of $6 million in a newly-formed joint venture of which the Company owns a 30% share.  This joint venture will construct and operate a casting foundry in order to eventually supply castings to the Company's North American Braking operations through a long-term supply arrangement.

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Capital Stock (Detail) (USD $)	3 Months Ended		6 Months Ended				3 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014 $2 Billion Share Repurchase Program [Member]	Jun. 27, 2014 Anti Dilution Program [Member]	Mar. 28, 2014 ASR March 2014 [Member]	Jun. 27, 2014 Series A junior participating preferred stock
Stockholders Equity Note [Line Items]
Common stock, shares authorized	500,000,000		500,000,000
Common stock, par value	$ 0.01		$ 0.01
Common stock, shares outstanding	110,884,083		110,884,083
Treasury stock, shares	4,668		4,668
Preferred stock, shares authorized	250,000,000		250,000,000					500,000
Preferred stock, par value	$ 0.01		$ 0.01
Preferred stock, shares issued								0
Preferred stock, shares outstanding								0
Number of shares repurchased							3,900,000
Value of capital stock repurchased	$ 0	$ 190,000,000	$ 400,000,000	$ 200,000,000			$ 400,000,000
Stock repurchase program authorized amount					$ 2,000,000,000
Stock repurchse program authorized shares						1,500,000

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Pension Plans and Postretirement Benefits Other Than Pensions (Tables)

6 Months Ended

Jun. 27, 2014

Pension Plans and Postretirement Benefits Other Than Pensions [Abstract]

Pension Plans and Postretirement Benefits Other Than Pensions [Table Text Block]

8. Pension Plans and Postretirement Benefits Other Than Pensions
Pension Plans
The following tables provide the components of net pension (income) cost for the Company’s defined benefit pension plans:
	Three Months Ended
	June 27, 2014						June 28, 2013
					Rest of						Rest of
	U.S.		U.K.		World		U.S.		U.K.		World
	(Dollars in millions)
Service cost	$	1	$	-	$	5	$	1	$	-	$	5
Interest cost on projected benefit obligations		10		53		8		10		47		9
Expected return on plan assets		(13)		(87)		(4)		(14)		(78)		(5)
Amortization		2		-		3		6		-		6
Net pension (income) cost	$	-	$	(34)	$	12	$	3	$	(31)	$	15

	Six Months Ended
	June 27, 2014						June 28, 2013
					Rest of						Rest of
	U.S.		U.K.		World		U.S.		U.K.		World
	(Dollars in millions)
Service cost	$	1	$	-	$	11	$	1	$	-	$	11
Interest cost on projected benefit obligations		19		105		18		21		94		18
Expected return on plan assets		(25)		(173)		(9)		(29)		(156)		(10)
Amortization		4		-		6		13		-		10
Net pension (income) cost	$	(1)	$	(68)	$	26	$	6	$	(62)	$	29

Postretirement Benefits Other Than Pensions ("OPEB")
The following tables provide the components of net OPEB cost (income) for the Company's plans:
	Three Months Ended
	June 27, 2014				June 28, 2013
			Rest of				Rest of
	U.S.		World		U.S.		World
	(Dollars in millions)
Interest cost on projected benefit obligations	$	4	$	1	$	4	$	1
Amortization		(3)		(1)		(3)		(2)
Settlement		-		-		(2)		-
Net OPEB cost (income)	$	1	$	-	$	(1)	$	(1)

	Six Months Ended
	June 27, 2014				June 28, 2013
			Rest of				Rest of
	U.S.		World		U.S.		World
	(Dollars in millions)
Interest cost on projected benefit obligations	$	8	$	2	$	7	$	2
Amortization		(5)		(3)		(7)		(2)
Settlement		-		-		(6)		-
Net OPEB cost (income)	$	3	$	(1)	$	(6)	$	-

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Inventories (Detail) (USD $) In Millions, unless otherwise specified	Jun. 27, 2014	Dec. 31, 2013
Inventories [Abstract]
Finished products and work in process	$ 553	$ 499
Raw materials and supplies	566	520
Total inventories	$ 1,119	$ 1,019

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Contingencies

6 Months Ended

Jun. 27, 2014

Contingencies [Abstract]

Contingencies

14. Contingencies

Various claims, lawsuits and administrative proceedings are pending or threatened against the Company or its subsidiaries, covering a wide range of matters that arise in the ordinary course of the Company's business activities with respect to commercial, patent, product liability, environmental and occupational safety and health law matters. In addition, the Company and its subsidiaries are conducting a number of environmental investigations and remedial actions at current and former locations of certain of the Company's subsidiaries. Along with other companies, certain subsidiaries of the Company have been named potentially responsible parties for certain waste management sites. Each of these matters is subject to various uncertainties, and some of these matters may be resolved unfavorably with respect to the Company or the relevant subsidiary. A reserve estimate for each environmental matter is established using standard engineering cost estimating techniques on an undiscounted basis. In the determination of such costs, consideration is given to the professional judgment of Company environmental engineers, in consultation with outside environmental specialists, when necessary. At multi-party sites, the reserve estimate also reflects the expected allocation of total project costs among the various potentially responsible parties.

As of June 27, 2014, the Company had reserves for environmental matters of $73 million. In addition, the Company has established a receivable for a portion of this environmental liability as a result of its right to indemnification for 50% of any environmental liabilities associated with the operation or ownership of the Company's automotive business existing at or prior to March 2003. The Company believes any liability, in excess of amounts accrued in its financial statements, that may result from the resolution of environmental matters for which sufficient information is available to support these cost estimates, will not have a material adverse effect on the Company's financial position, results of operations or cash flows.

The Company faces an inherent business risk of exposure to product liability, recall and warranty claims in the event that its products actually or allegedly fail to perform as expected or the use of its products results, or is alleged to result, in bodily injury and/or property damage. Accordingly, the Company could experience material warranty, recall or product liability losses in the future. For further information, including quantification of the Company's product warranty liability, see the description of “Warranties” in Note 2.

While certain of the Company's subsidiaries have been subject in recent years to asbestos-related claims, management believes that such claims will not have a material adverse effect on the Company's financial statements. In general, these claims seek damages for illnesses alleged to have resulted from exposure to asbestos used in certain components sold in the past by the Company's subsidiaries. Management believes that the majority of the claimants were vehicle mechanics. The vast majority of these claims name as defendants numerous manufacturers and suppliers of a variety of products allegedly containing asbestos. Management believes that, to the extent any of the products sold by the Company's subsidiaries and at issue in these cases contained asbestos, the asbestos was encapsulated. Based upon several years of experience with such claims, management believes that only a small proportion of the claimants has or will ever develop any asbestos-related illness.

Neither settlement costs in connection with asbestos claims nor annual legal fees to defend these claims have been material in the past. These claims are strongly disputed by the Company and it has been its policy to defend against them aggressively. Many of these cases have been dismissed without any payment whatsoever. Moreover, there is significant insurance coverage with solvent carriers with respect to these claims. However, while costs to defend and settle these claims in the past have not been material, there can be no assurances that this will remain so in the future.

Management believes that the ultimate resolution of the foregoing contingencies will not have a material effect on the Company's financial statements as a whole.

Antitrust Matters

Antitrust authorities, including those in the United States and Europe, are investigating possible violations of competition (antitrust) laws by automotive parts suppliers (referred to herein as the “Antitrust Investigations”). The U.S. Department of Justice (“DOJ”) initiated an investigation into the Company's Occupant Safety Systems business in June 2011, whichwas concluded in 2012 when the court approved a plea agreement between one of the Company's German subsidiaries and the DOJ. Also in June 2011, the European Commission initiated an Antitrust Investigation which includes the Company, among others, and which is ongoing. While the duration and outcome of the European Commission's investigation is uncertain, a determination that the Company has violated European competition (antitrust) laws could result in significant penalties which could have a material adverse effect on its financial condition, results of operations and cash flows, as well as its reputation. While the Company cannot estimate the ultimate financial impact resulting from the European investigation, it will continue to evaluate developments in this matter on a regular basis and will record an accrual as and when appropriate.

The Company's policy is to comply with all laws and regulations, including all antitrust and competition laws. The Company is cooperating fully with the competition authorities in the context of their ongoing investigations.

The Company hassettled, for an amount that is immaterial to the Company, certain purported class action lawsuits filed on behalf of vehicle purchasers, lessors and dealers, alleging that the Company and certain of its competitors conspired to fix and raise prices for Occupant Safety Systems products. These lawsuits were filed on various dates from June 2012 through July 2013 and were consolidated in the United States District Court for the Eastern District of Michigan. Once the court approves the settlements, those cases will be dismissed. Class action lawsuits filed against the Company on various dates from June 2012 through May 2014 in the United States District Court for the Eastern District of Michigan on behalf of direct purchasers and in various courts in Canada on behalf of vehicle purchasers, lessors, dealers and direct purchasers remain pending, which the Company intends to vigorously defend. Management believes that the ultimate resolution of those cases will not have a material adverse effect on the Company's financial condition, results of operations or cash flows.