vc-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

________________

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number 001-15827

VISTEON CORPORATION

(Exact name of registrant as specified in its charter)


State of	Delaware		38-3519512
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
One Village Center Drive,	Van Buren Township,	Michigan	48111
(Address of principal executive offices)			(Zip code)

Registrant’s telephone number, including area code: (800)-VISTEON

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $.01 Per Share	VC	The NASDAQ Stock Market LLC

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 ü No__

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 ü No __

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

Large accelerated filer ü Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of April 16, 2026, the registrant had outstanding 26,694,021 shares of common stock.

Exhibit index located on page number 40.

Visteon Corporation and Subsidiaries

Index


Part I - Financial Information		Page
	Item 1 - Condensed Consolidated Financial Statements	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	3
	Condensed Consolidated Balance Sheets (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Condensed Consolidated Statements of Changes in Equity (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
	Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations	25
	Item 3 - Quantitative and Qualitative Disclosures about Market Risk	36
	Item 4 - Controls and Procedures	36
Part II - Other Information		38
	Item 1 - Legal Proceedings	38
	Item 1A - Risk Factors	38
	Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	38
	Item 5 - Other Information	38
	Item 6 - Exhibits	39
Exhibit Index		40
Signatures		40

Part I

Financial Information

Item 1.Condensed Consolidated Financial Statements

VISTEON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions except per share amounts)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
Net sales	$	954	$	934
Cost of sales	(841)		(796)
Gross margin	113		138
Selling, general and administrative expenses	(54)		(47)
Restructuring, net	(18)		—
Interest expense	(3)		(3)
Interest income	5		4
Equity in net income (loss) of non-consolidated affiliates	2		2
Other income (expense), net	4		1
Income (loss) before income taxes	49		95
Provision for income taxes	(16)		(26)
Net income (loss)	33		69
Less: Net (income) loss attributable to non-controlling interests	(2)		(2)
Net income (loss) attributable to Visteon Corporation	$	31	$	67

Comprehensive income (loss)	$	22	$	89
Less: Comprehensive (income) loss attributable to non-controlling interests	(3)		(3)
Comprehensive income (loss) attributable to Visteon Corporation	$	19	$	86




Basic earnings (loss) per share attributable to Visteon Corporation	$	1.16	$	2.46




Diluted earnings (loss) per share attributable to Visteon Corporation	$	1.14	$	2.44

See accompanying notes to the condensed consolidated financial statements.

VISTEON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)


	(Unaudited)
	March 31,		December 31,
	2026		2025
ASSETS
Cash and equivalents	$	680	$	771
Restricted cash	2		2
Accounts receivable, net	675		613
Inventories, net	316		269
Other current assets	148		130
Total current assets	1,821		1,785
Property and equipment, net	516		524
Intangible assets, net	216		222
Right-of-use assets	135		126
Investments in non-consolidated affiliates	31		29
Deferred tax assets	513		511
Other non-current assets	191		189
Total assets	$	3,423	$	3,386
LIABILITIES AND EQUITY
Short-term debt	$	18	$	18
Accounts payable	613		540
Accrued employee liabilities	98		122
Current lease liability	24		21
Other current liabilities	300		291
Total current liabilities	1,053		992
Long-term debt, net	279		283
Employee benefits	83		88
Non-current lease liability	115		109
Deferred tax liabilities	52		51
Other non-current liabilities	199		212
Stockholders’ equity:
Preferred stock (par value 0.01, 50 million shares authorized, none outstanding as of March 31, 2026 and December 31, 2025)	—		—
Common stock (par value $0.01, 250 million shares authorized, 55 million shares issued, 26.7 million shares outstanding as of March 31, 2026 and 26.8 million shares outstanding as of December 31, 2025, respectively)	1		1
Additional paid-in capital	1,389		1,398
Retained earnings	2,859		2,838
Accumulated other comprehensive loss	(252)		(240)
Treasury stock	(2,441)		(2,429)
Total Visteon Corporation stockholders’ equity	1,556		1,568
Non-controlling interests	86		83
Total equity	1,642		1,651
Total liabilities and equity	$	3,423	$	3,386

See accompanying notes to the condensed consolidated financial statements.

VISTEON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
Operating Activities
Net income (loss)	$	33	$	69
Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities:
Depreciation and amortization	29		25
Non-cash stock-based compensation	12		11
Equity in net loss (income) of non-consolidated affiliates, net of dividends remitted	(2)		(2)
Tax valuation allowance expense (benefit)	—		(2)
Other non-cash items	—		(1)
Changes in assets and liabilities:
Accounts receivable	(71)		(24)
Inventories	(51)		(20)
Accounts payable	89		51
Other assets and other liabilities	(33)		(37)
Net cash provided from operating activities	6		70
Investing Activities
Capital expenditures, including intangibles	(36)		(35)
Net investment hedge transactions	(12)		1
Other	—		1
Net cash used by investing activities	(48)		(33)
Financing Activities
Principal repayment of term debt facility	(4)		(4)
Dividends to non-controlling interests	—		(4)
Dividend to shareholders	(10)		—
Repurchase of common stock	(30)		(7)
Stock-based compensation tax withholding payments	(7)		(6)
Proceeds from the exercise of stock options	4		3
Net cash used by financing activities	(47)		(18)
Effect of exchange rate changes on cash	(2)		13
Net increase (decrease) in cash, equivalents, and restricted cash	(91)		32
Cash, equivalents, and restricted cash at beginning of the period	773		626
Cash, equivalents, and restricted cash at end of the period	$	682	$	658

See accompanying notes to the condensed consolidated financial statements.

VISTEON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In millions)

(Unaudited)


	Total Visteon Corporation Stockholders' Equity
	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Visteon Corporation Stockholders' Equity		Non-Controlling Interests		Total Equity
December 31, 2025	$	1	$	1,398	$	2,838	$	(240)	$	(2,429)	$	1,568	$	83	1,651
Net income (loss)	—		—		31		—		—		31		2		33
Other comprehensive income (loss)	—		—		—		(12)		—		(12)		1		(11)
Stock-based compensation, net	—		(9)		—		—		18		9		—		9
Share repurchase	—		—		—		—		(30)		(30)				(30)
Dividends declared	—		—		(10)		—		$	—	(10)		—		(10)
March 31, 2026	$	1	$	1,389	$	2,859	$	(252)	$	(2,441)	$	1,556	$	86	$	1,642


	Total Visteon Corporation Stockholders' Equity
	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Visteon Corporation Stockholders' Equity		Non-Controlling Interests		Total Equity
December 31, 2024	$	1	$	1,376	$	2,652	$	(306)	$	(2,390)	$	1,333	$	81	$	1,414
Net income (loss)	—		—		67		—		—		67		2		69
Other comprehensive income (loss)	—		—		—		19		—		19		1		20
Stock-based compensation, net	—		(8)		—		—		15		7		—		7
Share repurchase	—		—		—		—		(7)		(7)		—		(7)
March 31, 2025	$	1	$	1,368	$	2,719	$	(287)	$	(2,382)	$	1,419	$	84	$	1,503

See accompanying notes to the condensed consolidated financial statements.

VISTEON CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. Summary of Significant Accounting Policies

Basis of Presentation - Interim Financial Statements

The condensed consolidated financial statements of Visteon Corporation and Subsidiaries (the "Company" or "Visteon") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission ("SEC") have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments, except as otherwise disclosed) that management believes are necessary for a fair presentation of the results of operations, financial position, stockholders' equity, and cash flows of the Company for the interim periods presented. Interim results are not necessarily indicative of full-year results.

Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported herein. Considerable judgment is involved in making these determinations, and the use of different estimates or assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results could differ from those reported herein. Events and changes in circumstances arising after March 31, 2026 will be reflected in management's estimates in future periods.

Accounts Receivable: Accounts receivable are stated at the invoiced amount, less an allowance for doubtful accounts for estimated amounts not expected to be collected, and do not bear interest.

The Company receives bank notes from certain customers in China to settle trade accounts receivable. The collection on such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. The Company redeemed $35 million of China bank notes during the three months ended March 31, 2026.

Credit Loss Allowance: The Company establishes an allowance for doubtful accounts for accounts receivable based on the current expected credit loss impairment model (“CECL”). The Company applies a historical loss rate based on historic write-offs by region to aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses, as necessary. The Company may also record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. The allowance for doubtful accounts was $10 million and $9 million as of March 31, 2026 and December 31, 2025, respectively.

Change in Accounting Principle

Assessing Realizability of U.S. Deferred Tax Assets Accounting Method Change

During the fourth quarter of 2025, the Company changed its accounting method for assessing the realizability of its deferred tax assets and resulting valuation allowance from the incremental cash tax savings method to the tax-law-ordering methodology. The Company has determined that the tax-law-ordering methodology is preferable because it provides greater transparency regarding utilization of existing attributes and prioritizes existing attributes over future attributes.

The change in approach, effective December 31, 2025, has been determined to be a change in accounting principle and the effects of the change have been applied and disclosed retrospectively.

Refer to the section titled Change in Accounting Principle within Note 1 and Note 22 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for further details on our method of accounting for realizability of its deferred tax assets and resulting valuation allowance.

Accounting Pronouncements Not Yet Adopted:

In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses (DISE) which requires disaggregated disclosure of income statement expenses for public business entities. The standard requires public business entities to disclose disaggregated information about specific natural expense categories underlying certain income statement expense line items that are considered relevant. The FASB also issued ASU No. 2025-01 (“ASU 2025-01”), Clarifying the Effective Date, which clarifies the adoption date of ASU 2024-03 as annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the potential effect of this accounting standard update on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU No. 2025-06 (“ASU 2025-06”), Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes outdated guidance on internal-use software costs to reflect current development practices and improve operability. The standard eliminates the project stages model and replaces with a principles based recognition threshold. The standard also creates a new capitalization criteria that clarifies capitalization when funding is authorized by management and is probable to be completed and used. The adoption of ASU 2025-06 is effective for annual and interim periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the potential effect of this accounting standard update on its consolidated financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements ("ASU 2025-09"). ASU 2025-09 amends certain aspects of the existing hedge accounting guidance in ASC 815 to more closely align hedge accounting with the economics of an entity's risk management activities. ASU 2025-09 is effective for fiscal years beginning after December 15, 2026 and interim periods therein using prospective adoption. Early adoption is permitted. The Company is currently evaluating the potential effect of this accounting standard update on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities ("ASU 2025-10"). ASU 2025-10 adds guidance on the recognition, measurement and presentation of government grants. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years, and permits modified prospective, modified retrospective, or full retrospective adoption. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). ASU 2025-11 is intended to improve the navigability of guidance in ASC 270, Interim Reporting, and clarify when it applies. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, and permits prospective or full retrospective adoption. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

NOTE 2. Business Acquisition

On May 21, 2025, Visteon acquired all equity shares of a user experience electronics engineering consulting and consumer research company for cash of $55 million ("UX Acquisition") not including contingent consideration of up to $9 million to be paid if certain financial and operational milestones are achieved. The UX Acquisition adds strong capabilities in user experience advisory services to OEM’s.

The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows:


(In millions)
Cash	$	55
Fair value of contingent consideration	4
Total fair value of consideration	$	59

Assets acquired:
Cash	$	5
Accounts receivable	8
Intangible assets	37
Property, plant & equipment	1
Right-of-use assets	1
Total Assets acquired	$	52

Liabilities assumed:
Deferred tax liability	$	11
Non-current lease liability	1
Other liabilities	9
Total Liabilities assumed	$	21

Goodwill	$	28

The UX Acquisition is accounted for as a business combination. The purchase price was recorded on a preliminary basis at estimated fair values, based on management's assessment as of May 21, 2025. These estimates relied on available information, reasonable and supportable assumptions, and when necessary, assistance from a third-party engaged by the Company.

During the measurement period, not to exceed one year from the acquisition date, the Company may adjust estimated or provisional amounts of assets and liabilities if new information is obtained related to facts and circumstances that existed as of the acquisition date. Measurement period adjustments are recorded in the period they are identified. As of December 31, 2025 adjustments were made based on updated information provided by management. These adjustments resulted in a decrease in the fair value of contingent consideration of $1 million, an increase in tradename of $2 million, an increase in customer-related assets of $1 million, an increase in deferred tax liability of $1 million, and a decrease in goodwill of $3 million when compared to the preliminary allocation. As of March 31, 2026 the Company considered the purchase price allocation complete.

Fair values for intangible assets were based on the income approach including excess earnings and relief from royalty methods. As of March 31, 2026, the Company recorded intangible assets including a tradename of $5 million and customer-related assets totaling $32 million. These definite-lived intangible assets are being amortized using the straight-line method over their estimated useful lives of 20 years for tradename and 16 years for customer-related assets. The fair value of contingent consideration was measured using a Monte Carlo simulation which is a financial model that utilizes the probabilities of various outcomes.

These fair value measurements are classified within Level 3 of the fair value hierarchy.

The Company incurred $2 million in costs related to the UX Acquisition which are classified as Other income (expense), net on the Company's condensed consolidated statements of comprehensive income within the year ended December 31, 2025.

The pro forma effects of the UX Acquisition did not materially impact the Company's reported results for any period presented, and as a result, no unaudited pro forma disclosures are included herein.

NOTE 3. Non-Consolidated Affiliates

Investments in Affiliates

The Company's investments in non-consolidated equity method affiliates include the following:


	March 31,		December 31,
(In millions)	2026		2025
Yanfeng Visteon Investment Co., Ltd. ("YFVIC") (50%)	$	—	$	—
Limited partnerships	16		16
Other	15		13
Total investments in non-consolidated affiliates	$	31	$	29

Variable Interest Entities

The Company evaluates whether joint ventures in which it has invested are Variable Interest Entities (“VIE”) at the start of each new venture and when a reconsideration event has occurred. The Company consolidates a VIE if it is determined to be the primary beneficiary of the VIE having both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The Company determined that YFVIC is a VIE. The Company holds a variable interest in YFVIC primarily related to its ownership interests and subordinated financial support. The Company and Yangfeng Automotive Trim Systems Co. Ltd. ("YF") each own 50% of YFVIC and neither entity has the power to control the operations of YFVIC; therefore, the Company is not the primary beneficiary of YFVIC and does not consolidate the joint venture.

The Company's accounts receivable and accounts payable with YFVIC consists of the following:


	March 31,		December 31,
(In millions)	2026		2025
Receivables due from YFVIC, net	$	9	$	9
Payables due from YFVIC, net	$	9	$	12

As of March 31, 2026, the Company's share of YFVIC reported losses were greater than the carrying value of this investment. Based on the equity method of accounting, losses exceeding the investment balance were not recorded and are monitored as suspended losses. As of March 31, 2026, the total suspended loss attributable to YFVIC was $5 million, for which the Company has no contractual obligation to fund.

Non-Consolidated Affiliate Transactions

The Company has committed to make a $20 million investment in multiple entities principally focused on the automotive sector pursuant to limited partnership agreements. As a limited partner in each entity, the Company will periodically make capital contributions toward this total commitment amount. As of March 31, 2026, the Company has contributed a total of approximately $15 million toward the aggregate investment commitments. These limited partnerships are classified as equity method investments.

NOTE 4. Restructuring

Given the economically-sensitive and highly competitive nature of the automotive electronics industry, the Company continues to closely monitor current market factors and industry trends, taking actions as necessary which may include restructuring actions. However, there can be no assurance that any such actions will be sufficient to fully offset the impact of adverse factors on the Company or its results of operations, financial position and cash flows.

During the three months ended March 31, 2026, the Company recorded $18 million of net restructuring expense. During the three months ended March 31, 2025, the Company recorded no restructuring expense. These expenses are primarily related to employee severance.

Current restructuring actions include the following:

•During the first quarter of 2026, the Company approved and began to execute on a restructuring action designed to rebalance resources and better align talent with areas of business growth while improving operational efficiencies. As of March 31, 2026 the Company has $17 million accrued related to these actions and payments related to these programs are expected to be complete by the end of 2028.

•During September of 2024, the Company approved a global restructuring program impacting manufacturing and engineering facilities, as well as administrative functions to improve efficiency and further rationalize the Company’s footprint. As of March 31, 2026, $9 million remains accrued for the program and payments related to this program are expected to be complete by the end of 2026.

•During prior years, the Company approved various restructuring programs to improve efficiencies across the organization. As of March 31, 2026, $4 million remains accrued related to these previously announced actions.

•As of March 31, 2026, the Company retained restructuring reserves as part of the Company's divestiture of the majority of its global Interiors business (the "Interiors Divestiture") and legacy operations of $3 million associated with completed programs for the fundamental reorganization of operations at facilities in Brazil and France.

Restructuring Reserves

The Company’s restructuring reserves and related activity are summarized below. The Company anticipates that the activities associated with the current restructuring reserve balance will be substantially complete by the end of 2028. The Company’s condensed consolidated restructuring reserves are shown as Other liabilities as detailed in Note 8, "Other Liabilities".


(In millions)
December 31, 2025	$	23
Expense	18
Foreign currency	(1)
Payments	(7)
March 31, 2026	$	33

NOTE 5. Inventories

Inventories, net consist of the following components:


	March 31,		December 31,
(In millions)	2026		2025
Raw materials	$	222	$	185
Work-in-process	34		33
Finished products	60		51
	$	316	$	269

NOTE 6. Goodwill and Other Intangible Assets

Intangible assets, net are comprised of the following:


		March 31, 2026						December 31, 2025
(In millions)	Estimated Weighted Average Useful Life (years)	Gross Intangibles		Accumulated Amortization		Net Intangibles		Gross Intangibles		Accumulated Amortization		Net Intangibles
Definite-Lived:
Customer related	15	80		(16)		64		81		(13)		$	68
Capitalized software development	4	65		(40)		25		64		(39)		$	25
Tradename	16	8		(1)		7		8		(1)		$	7
Other	11	26		(17)		9		26		(17)		$	9
Subtotal		179		(74)		105		179		(70)		109
Indefinite-Lived:
Goodwill		111		—		111		113		—		$	113
Total		$	290	$	(74)	$	216	$	292	$	(70)	$	222

The Company also owns developed technology assets which have a net balance of less than $1 million as of March 31, 2026 and December 31, 2025.

Capitalized software development consists of software development costs intended for integration into customer products.

Goodwill activity as of March 31, 2026 consisted of the following:


(In millions)
December 31, 2025	$	113
Foreign currency	(2)
March 31, 2026	$	111

NOTE 7. Other Assets

Other current assets are comprised of the following components:


	March 31,		December 31,
(In millions)	2026		2025
Recoverable taxes	$	71	$	56
Prepaid assets and deposits	30		28
Contractually reimbursable engineering costs	23		24
Joint venture receivables	11		10
Contractual payments	6		5
Other	7		7
	$	148	$	130

Other non-current assets are comprised of the following components:


	March 31,		December 31,
(In millions)	2026		2025
Contractual payments	$	121	$	113
Contractually reimbursable engineering costs	21		16
Recoverable taxes	5		5
Derivative financial instruments	3		7
Other	41		48
	$	191	$	189

Contractual payments represent certain amounts associated with commercial arrangements that are capitalized and subsequently recognized over the period to which they relate.

Current and non-current contractually reimbursable engineering costs are related to pre-production design and development costs incurred pursuant to long-term supply arrangements that are contractually guaranteed for reimbursement by customers. The Company expects to receive cash reimbursement payments of $21 million during the remainder of 2026, $16 million in 2027, $4 million in 2028, $1 million in 2029, and $2 million in 2030 and beyond.

NOTE 8. Other Liabilities

Other current liabilities are summarized as follows:


	March 31,		December 31,
(In millions)	2026		2025
Deferred income	$	69	$	55
Product warranty and recall accruals	68		64
Income taxes payable	34		41
Non-income taxes payable	26		28
Restructuring reserves	21		12
Contractual liabilities	19		23
Royalty reserves	19		18
Joint venture payable	10		12
Dividends payable	5		5
Other	29		33
	$	300	$	291

Other non-current liabilities are summarized as follows:


	March 31,		December 31,
(In millions)	2026		2025
Contractual liabilities	$	89	$	84
Product warranty and recall accruals	45		43
Derivative financial instruments	—		21
Income tax reserves	8		8
Deferred income	34		32
Restructuring reserves	11		11
Other	12		13
	$	199	$	212

NOTE 9. Debt

The Company’s debt consists of the following:


	March 31,		December 31,
(In millions)	2026		2025
Short-Term Debt:
Current portion of long-term debt	$	18	$	18

Long-Term Debt:


Term debt facility, net	$	279	$	283

On July 19, 2022 the Company entered into an amended and restated Credit Agreement which included a $350 million Term Facility and a $400 million Revolving Credit Facility. The amendment, among other things, changed the Credit Agreement from a LIBOR-based rate to a Secured Overnight Financing Rate ("SOFR") based rate and extended the Credit Agreement maturity date to July 19, 2027.

On June 28, 2023, the Company amended the existing Credit Agreement to, among other things, amend certain affirmative and negative covenants.

The Company has deferred costs of $2 million and $1 million related to these amendments to the Credit Agreement, which are recorded in Other non-current assets and Long-term debt, net, respectively. The deferred costs will be amortized over the term of the Credit Agreement.

Short-Term Debt

Terms of the amended credit facility require a quarterly principal payment equal to 1.25% of the original term debt balance. The first required payment was made during the second quarter of 2023.

As of March 31, 2026, the Company has no other short-term borrowing, including at the Company's subsidiaries. The Company's subsidiaries have access to $151 million of capacity under short-term credit facilities.

Long-Term Debt

The Company has no outstanding borrowings on the Revolving Credit Facility as of March 31, 2026 and December 31, 2025.

Interest on the Term Facility loans and Revolving Credit Facility accrue interest at a rate equal to a SOFR-based rate plus an applicable margin of between 1.00% and 1.75%, as determined by the Company's total gross leverage ratio. The Company can benefit from a 5 basis point decrease to the applicable margin due to a sustainability-linked pricing provision based on the Company's annual performance on reducing GHG emissions.

The Credit Agreement requires compliance with customary affirmative and negative covenants and contains customary events of default. The Revolving Credit Facility also requires that the Company maintain a total net leverage ratio no greater than 3.50:1.00. During any period when the Company’s corporate and family ratings meet investment grade ratings, certain of the negative covenants are suspended.

The Revolving Credit Facility also provides $75 million availability for the issuance of letters of credit and a maximum of $20 million for swing line borrowings. Any amount of the facility utilized for letters of credit or swing line loans outstanding will reduce the amount available under the existing Revolving Credit Facility. The Company may request increases in the limits under the Credit Agreement and may request the addition of one or more term loan facilities. Outstanding borrowings may be prepaid without penalty (other than borrowings made for the purpose of reducing the effective interest rate margin or weighted average yield of the loans). There are mandatory prepayments of principal in connection with: (i) excess cash flow sweeps above certain leverage thresholds, (ii) certain asset sales or other dispositions, (iii) certain refinancing of indebtedness and (iv) over-advances under the Revolving Credit Facility. There are no excess cash flow sweeps required at the Company’s current leverage level.

All obligations under the Credit Agreement and obligations with respect to certain cash management services and swap transaction agreements between the Company and its lenders are unconditionally guaranteed by certain of the Company’s

subsidiaries. Under the terms of the Credit Agreement, any amounts outstanding are secured by a first-priority perfected lien on substantially all property of the Company and the subsidiaries party to the security agreement, subject to certain limitations.

Other

The Company has a $6 million letter of credit facility, whereby the Company is required to maintain a cash collateral account equal to 103% (110% for non-U.S. dollar denominated letters) of the aggregate stated amount of issued letters of credit and must reimburse any amounts drawn under issued letters of credit. The Company had $1 million of outstanding letters of credit issued under this facility secured by restricted cash, as of March 31, 2026 and December 31, 2025. Additionally, the Company had $5 million of locally issued bank guarantees and letters of credit as of March 31, 2026 and December 31, 2025, to support various tax appeals, customs arrangements and other obligations at its local affiliates.

NOTE 10. Employee Benefit Plans

The Company's net periodic benefit costs for all defined benefit plans for the three month periods ended March 31, 2026 and 2025 were as follows:


	U.S. Plans				Non-U.S. Plans
(In millions)	2026		2025		2026		2025
Costs Recognized in Income:
Pension service (cost):
Service cost	$	—	$	—	$	—	$	—
Pension financing benefits (cost):
Interest cost	$	(4)	$	(7)	$	(3)	$	(2)
Expected return on plan assets	8		9		3		2

Total pension financing benefits:	4		2		—		—



Net pension benefit (cost)	$	4	$	2	$	—	$	—

Pension financing benefits are classified as Other income (expense), net on the Company's condensed consolidated statements of comprehensive income.

During the three months ended March 31, 2026, cash contributions to the Company's defined benefit plans were less than $1 million related to its US plan and $1 million related to its non-U.S. plans. The Company estimates that total cash contributions related to its U.S. and non-U.S. defined benefit pension plans during the remainder of 2026 will be less than $1 million and $

SEC Form 10-Q filed by Visteon Corporation