The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: First off Don, Swamy, again, congrats. Both congratulations. I just want -- help me a little more color on some of the structural costs saving. It sounds
like headcount is a big part of it, but just curious if there's anything else. And so maybe it's a challenge to quantify, but so how do we think about
that in terms of maybe if it's a structurally higher incremental margin or putting a number around those cost savings?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: And I guess I don't want to pick too much on the Q4 guide and you said it's very strong. But if I just sort of look at the implied sort of growth rate
sequentially, I think sales were up about $700 million. I haven't quite done the math with the subsidies, but again, it looks like the incremental
margin is a bit lower than I might have thought. So maybe some of those -- the cost savings are taking some time to come in? Or maybe it's mix?
Just curious if you could speak to that.
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Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. So just maybe just one last one. Just for the accounting on the impairment in the JV. What's the remaining carrying value for that JV? I'm just
sort of curious, the last 2 years sort of what percentage of the book is written down.
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: What are the restructuring savings you're expecting to achieve by year-end within $200 million fully targeted, what should be realized this year?
And has that changed at all relative to your previous guidance?
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Okay. Got it. So no major change to the -- what's achieved this year?
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Okay. All right. And then just at a high level, as we try to bridge to 2021, on the positive side of the ledger, we'll have structural cost savings from
the program we just talked about. It sounds as though your top-up payments were fully reimbursed by the government support programs this
past quarter, so nothing to really call out on that front.
Just as we think about next year, is there a quantifiable bucket of net temporary cost savings this year that won't repeat in 2021? I mean could this
be an equal offset to your permanent savings next year? Just how should we be thinking about that? That would be helpful.
Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst
: Got it. And then just last one. The timing of the almost $30 million share buyback program, would you expect to complete that authorization within
the 1-year term? Just what's been the company's historical track record on fully executing the share reauthorization?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Vince, just going back to the guidance that you provided in January for 2022, when you provided that guidance, what's the restructuring part of
that, the restructuring where you plan on getting the $200 million of savings? Or should we think of that as that $200 million above and beyond
the guidance that you provided back in January?
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Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. The other thing I wanted to ask about -- I don't think there's been any discussion today about the 3 -- you have the 3 significant ADAS programs
where you're moving from engineering into production. And when you're talking about some of the moving parts that improved your margins,
you didn't talk about those programs. So can you give us an update on those programs and where they are in terms of moving from engineering
to launch and if they are contributing to the margin?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Yes. And can you just be a little bit more specific? When do these 3 programs get into launch? Does it start next year and then unfold over the next
2 years?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. I understand. And just one last question, Vince. I noticed that you did buy back some shares during the quarter. Is that more you're buying
for antidilutive purposes? Or do you feel comfortable now given how things have unfolded with COVID and the recovery in the industry that you
can be back to buying stock?
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PRELIMINARY
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