Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | VNE | |
Entity Registrant Name | Veoneer, Inc. | |
Entity Central Index Key | 1,733,186 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 87,132,780 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Income Statement [Abstract] | |||||
Net sales | $ 572 | $ 579 | $ 1,166 | $ 1,162 | |
Cost of sales | (460) | (459) | (943) | (929) | |
Gross profit | 112 | 120 | 223 | 233 | |
Selling, general and administrative expenses | (37) | (26) | (68) | (55) | |
Research, development and engineering expenses, net | (119) | (102) | (225) | (189) | |
Amortization of intangibles | (6) | (5) | (11) | (24) | |
Other income (expense), net | 2 | 1 | 17 | 13 | |
Operating loss | (48) | (12) | (64) | (22) | |
Loss from equity method investment | (16) | (8) | (30) | (8) | |
Interest income | 1 | 0 | 1 | 0 | |
Interest expense | (1) | 0 | (1) | 0 | |
Other non-operating items, net | 1 | 1 | 1 | 0 | |
Loss before income taxes | (63) | (19) | (93) | (30) | |
Income tax expense | (3) | (11) | (10) | (22) | |
Net loss | (66) | (30) | (103) | (52) | |
Less: Net loss attributable to non-controlling interest | (3) | (2) | (8) | (4) | |
Net loss attributable to controlling interest | $ (63) | $ (28) | $ (95) | $ (48) | |
Net loss per share - basic | $ (0.72) | $ (0.32) | $ (1.09) | $ (0.55) | |
Net loss per share - diluted | $ (0.72) | $ (0.32) | $ (1.09) | $ (0.55) | |
Weighted average number of shares outstanding | 87,130 | 87,130 | 87,130 | 87,130 | |
Weighted average number of shares outstanding, assuming dilution | [1] | 87,130 | 87,130 | 87,130 | 87,130 |
[1] | Shares in the diluted EPS calculation represent basic shares due to the net loss. The shares excluded from the calculation were 598,568 for the three and six months ended June 30, 2018 and 2017 because they are anti-dilutive. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (66) | $ (30) | $ (103) | $ (52) |
Other comprehensive income (loss), before tax: | ||||
Change in cumulative translation adjustment | (15) | 5 | (4) | 15 |
Net change in cash flow hedges | 1 | (4) | 1 | (6) |
Pension liability | (1) | 0 | (1) | 0 |
Other comprehensive income (loss), before tax | (15) | 1 | (4) | 9 |
Expense for taxes | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (15) | 1 | (4) | 9 |
Comprehensive loss | (81) | (29) | (107) | (43) |
Less: Comprehensive loss attributable to non-controlling interest | (5) | (1) | (7) | (2) |
Comprehensive loss attributable to controlling interest | $ (76) | $ (28) | $ (100) | $ (41) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 980 | $ 0 |
Receivables, net | 439 | 460 |
Inventories, net | 157 | 154 |
Related party receivables | 71 | |
Prepaid expenses and contract assets | 29 | 34 |
Other current assets | 23 | |
Total current assets | 1,699 | 648 |
Property, plant and equipment, net | 415 | 362 |
Equity method investment | 134 | 98 |
Goodwill | 291 | 292 |
Intangible assets, net | 109 | 122 |
Deferred tax assets | 30 | 30 |
Related party notes receivables | 76 | |
Other non-current assets | 71 | 34 |
Total assets | 2,749 | 1,662 |
Liabilities and equity | ||
Accounts payable | 279 | 323 |
Related party payables | 47 | 5 |
Accrued expenses | 216 | 195 |
Income tax payable | 12 | 41 |
Other current liabilities | 30 | 26 |
Total current liabilities | 584 | 590 |
Related party long-term debt | 13 | 62 |
Pension liability | 19 | 14 |
Deferred tax liabilities | 20 | 17 |
Other non-current liabilities | 11 | 22 |
Total non-current liabilities | 63 | 115 |
Commitments and contingencies | ||
Equity | ||
Common stock | 87 | |
Additional paid-in capital | 1,915 | |
Net Former Parent investment | 844 | |
Accumulated other comprehensive income (loss) | (13) | (8) |
Total equity | 1,989 | 836 |
Non-controlling interest | 113 | 121 |
Total equity and non-controlling interest | 2,102 | 957 |
Total liabilities, equity and non-controlling interest | $ 2,749 | $ 1,662 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Net Former Parent Investment | Accumulated Other Comprehensive Income | Non-controlling Interests |
Balance at beginning of period at Dec. 31, 2016 | $ 1,090 | $ 877 | $ (29) | $ 242 | ||
Comprehensive Income (Loss): | ||||||
Net loss | (52) | (48) | (4) | |||
Foreign currency translation | 15 | 13 | 2 | |||
Net change in cash flow hedges | (6) | (6) | ||||
Comprehensive loss | (43) | (48) | 7 | (2) | ||
Net transfers from Former Parent | 179 | 179 | ||||
Balance at end of period at Jun. 30, 2017 | 1,226 | 1,008 | (22) | 240 | ||
Balance at beginning of period at Dec. 31, 2017 | 957 | 844 | (8) | 121 | ||
Comprehensive Income (Loss): | ||||||
Net loss | (103) | (95) | (8) | |||
Foreign currency translation | (4) | (5) | 1 | |||
Net change in cash flow hedges | 1 | 1 | ||||
Pension liability | (1) | (1) | ||||
Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with separation | $ 87 | $ 1,915 | (2,002) | |||
Comprehensive loss | (107) | 87 | 1,915 | (2,097) | (5) | (7) |
Net transfers from Former Parent | 1,252 | $ 1,253 | (1) | |||
Balance at end of period at Jun. 30, 2018 | $ 2,102 | $ 87 | $ 1,915 | $ (13) | $ 113 |
Condensed Combined Statements o
Condensed Combined Statements of Cash Flow (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net loss | $ (103) | $ (52) |
Depreciation and amortization | 55 | 64 |
Contingent consideration write-down | (14) | (13) |
Other, net | 3 | (20) |
Change in operating assets and liabilities: | ||
Accounts payable | (62) | (3) |
Related party receivables and payables, net | (31) | 3 |
Income taxes | (29) | 3 |
Accrued expenses | 25 | (11) |
Other current assets and liabilities, net | (20) | 6 |
Receivables, gross | 14 | (15) |
Inventories, gross | (6) | 7 |
Prepaid expenses and contract assets | 4 | (4) |
Net cash used in operating activities | (164) | (35) |
Investing activities | ||
Net decrease (increase) in related party notes receivable | 76 | (7) |
Capital expenditures | (71) | (50) |
Equity method investment | (71) | (112) |
Proceeds from sale of property, plant and equipment | 4 | 5 |
Net cash used in investing activities | (62) | (164) |
Financing activities | ||
Cash provided at separation by Former Parent | 980 | 0 |
Net transfers from Former Parent | 275 | 179 |
(Decrease) / increase in related party long-term debt | (49) | 20 |
Net cash provided by financing activities | 1,206 | 199 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase in cash and cash equivalents | 980 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 |
Cash and cash equivalents at end of year | $ 980 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation On “ On In Veoneer has three product areas: Active Safety Products (that includes active safety sensors for advanced driver assistance The accompanying Unaudited Condensed Consolidated Financial Statements for all periods presented have been prepared The Unaudited Condensed Consolidated Financial Statements include the historical operations, assets, and liabilities that The accompanying Unaudited Condensed Consolidated Financial Statements for Veoneer do not include all of the information and notes required by the accounting principles generally accepted in the U.S. (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies A summary of significant policies is included in the current report on Form 8-K filed with the SEC on July 2, 2018. Discussion on cash and cash equivalents is included here as an additional significant policy which has become relevant beginning quarter ended June 30, 2018. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. On the Distribution Date, Veoneer held approximately $1 billion of cash and cash equivalents. New Accounting Standards Adoption of New Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the “Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. In the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost. In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In October 2016, the FASB issued ASU 2016-16 , Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory In May 2014, the FASB issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606), Balance Sheet (Dollars in millions) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets Inventories, net $ 154 $ (5 ) $ 149 Prepaid expenses and contract assets 34 7 41 Equity Net Former Parent investment 844 1 845 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Income Statement (Dollars in millions) As Reported Balances without adoption of ASC 606 Effect of Changes As Reported Balances without adoption of ASC 606 Effect of Changes Net sales $ 572 $ 573 $ (1 ) $ 1,166 $ 1,166 $ - Cost of sales (460 ) (461 ) 1 (943 ) (943 ) - Operating loss (48 ) (48 ) - (64 ) (64 ) - As of June 30, 2018 Balance Sheet (Dollars in millions) As Reported Balances without adoption of ASC 606 Effect of Changes Assets Inventories, net $ 157 $ 162 $ (5 ) Prepaid expenses and other current assets 29 22 7 Equity Additional paid-in capital 1,915 1,914 1 Accounting Standards Issued But Not Yet Adopted In August 2017, the FASB issued ASU 2017-12, Derivative and Hedging (Topic 815) Targeted improvements to accounting for hedging activities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue In accordance with ASC 606, Revenue from Contracts with Customers, revenue is measured based on consideration specified in a contract with a customer, adjusted for any variable consideration (i.e. price concessions or annual price adjustments) and estimated at contract inception. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. In addition, from time to time, Veoneer may make payments to customers in connection with ongoing and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments unless certain criteria are met warranting capitalization. If the payments are capitalized, the amounts are amortized as the related goods are transferred. As of June 30, 2018, and December 31, 2017, the Company capitalized $43 million and $23 million, respectively, in Other non-current assets related to capitalized payments. The Company assesses these amounts for impairment. There was no impairment. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of goods and services The following is a description of principal activities from which the Company generates its revenue. The Company has two operating segments, Electronics and Brake Systems. Electronics includes all of electronics resources and expertise, restraint control systems and active safety products and Brake Systems provides brake control and actuation systems. The principal activities are essentially the same for each of the segments. Both of the segments generate revenue from the sale of production parts to original equipment manufacturers (“OEMs”). The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any price concession or annual price adjustments, is based on their stand-alone selling prices for each of the products. The stand-alone selling prices are determined based on the cost-plus margin approach. The Company recognizes revenue for production parts primarily at a point in time. For production parts with revenue recognized at a point in time, the Company recognizes revenue upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically F.O.B. shipping point). There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and a related asset and associated cost of goods sold and inventory. However, the financial impact of these contracts is immaterial considering the very short production cycles and limited inventory days on hand, which is typical for the automotive industry. The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e. price concessions or annual price adjustments). Customers typically pay for the production parts based on customary business practices with payment terms averaging 30 days. Disaggregation of revenue In the following tables, revenue is disaggregated by primary region and products of revenue recognition. Net Sales by Region (Dollars in millions) Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 104 $ 96 $ 200 $ 117 $ 89 $ 206 Americas 173 15 188 180 34 214 Europe 184 - 184 160 - 160 Total region sales 461 111 572 457 123 580 Less: intercompany sales - - - - (1 ) (1 ) Total $ 461 $ 111 $ 572 $ 457 $ 122 $ 579 Net Sales by Region (Dollars in millions) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 216 $ 195 $ 411 $ 240 $ 175 $ 415 Americas 351 30 381 359 70 429 Europe 374 - 374 321 - 321 Total region sales 941 225 1,166 920 245 1,165 Less: intercompany sales - - - - (3 ) (3 ) Total $ 941 $ 225 $ 1,166 $ 920 $ 242 $ 1,162 Net Sales by Products (Dollars in millions) Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 246 $ - $ 246 $ 266 $ - $ 266 Active Safety products 215 - 215 191 - 191 Brake Systems - 111 111 - 123 123 Total product sales 461 111 572 457 123 580 Less: intercompany sales - - - - (1 ) (1 ) Total net sales $ 461 $ 111 $ 572 $ 457 $ 122 $ 579 Net Sales by Products (Dollars in millions) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 514 $ - $ 514 $ 537 $ - $ 537 Active Safety products 427 - 427 383 - 383 Brake Systems - 225 225 - 245 245 Total product sales 941 225 1,166 920 245 1,165 Less: intercompany sales - - - - (3 ) (3 ) Total net sales $ 941 $ 225 $ 1,166 $ 920 $ 242 $ 1,162 Contract balances The following tables provide information about receivables and contract assets from contracts with customers. The contract assets related to the Company’s rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. There have been no impairment losses recognized related to contract assets arising from the Company’s contracts with customers. Contract Balances with Customers (Dollars in millions) As of June 30, 2018 December 31, 2017 Receivables, net $ 439 $ 460 Contract assets 1 7 - 1 Receivables, net of allowance (Dollars in millions) As of June 30, 2018 December 31, 2017 Receivables $ 441 $ 462 Allowance at beginning of period (2 ) (4 ) Net decrease/(increase) of allowance - 2 Allowance at end of period (2 ) (2 ) Receivables, net of allowance $ 439 $ 460 Changes in the contract asset balances during the period are as follows: Change in Contract Balances with Customers 1 (Dollars in millions) Three months ended Six months ended June 30, 2018 June 30, 2018 Contract assets Contract assets Beginning balance $ 8 $ - Increases due to cumulative catch up adjustment - 7 Increases due to revenue recognized 7 15 Decreases due to transfer to receivables (8 ) (15 ) Ending balance $ 7 $ 7 1 Contract costs As of June 30, 2018, the Company has capitalized $12 million of direct and incremental contract costs incurred in connection with obtaining a contract with a customer. These costs will be amortized as the related goods are transferred. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. The amount of fulfillment costs was not material for any period presented. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | 4. Business Combinations Business combinations generally take place to either gain key technology or strengthen Veoneer’s position in a certain geographical area or with a certain customer. The results of operations and cash flows from the Company’s acquisitions have been included in the Company’s Unaudited Condensed Consolidated Financial Statements prospectively from their date of acquisition. Fotonic i Norden dp AB On November 1, 2017, Autoliv completed the acquisition of all the shares in Fotonic i Norden dp AB (Fotonic), headquartered in Stockholm and Skellefteå in Sweden which were transferred to Veoneer in connection with the Spin-Off. The final acquisition date fair value of the total consideration transferred was $17 million, consisting of a $15 million cash payment and $2 million of deferred purchase consideration, payable at the 18 month anniversary of the closing date. The deferred purchase consideration reflects the holdback amount as stipulated in the share purchase agreement. The transaction has been accounted for as a business combination. The balance of the deferred purchase consideration remains unchanged at $2 million as of June 30, 2018. Fotonic provides Lidar and Time of Flight camera expertise and the acquisition included 35 Lidar and Time of Flight engineering experts, in addition to defined tangible and intangible assets. The strength of the acquired competence is on the Lidar and Time of Flight camera hardware side which form a complement to Veoneer’s skillset in the Lidar software and algorithms area. Lidar technology is an enabling technology for Highly Automated Driving and considered the primary sensor by all system developers. Fotonic is being reported in the Electronics segment. The net assets acquired as of the acquisition date amounted to $17 million. The final fair values of identifiable assets acquired consisted of intangible assets of $4 million and goodwill of $13 million. Acquired intangibles consisted of the fair value of background IP (patent & technical know-how). The useful life of the IP is five years and will be amortized on a straight-line basis. The recognized goodwill primary reflects the valuation of the acquired workforce of specialist engineers. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Level 1 - Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 - Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. Level 3 - Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Items Measured at Fair Value on a Recurring Basis Derivative instruments - The Company uses derivative financial instruments, “derivatives”, to mitigate the market risk that occurs from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial risk policy. The derivatives outstanding as of June 30, 2018 were foreign exchange swaps. All swaps principally match the terms and maturity of the underlying debt and no swaps have a maturity beyond six months. All derivatives are recognized in the Unaudited Condensed Consolidated Financial Statements at fair value. Certain derivatives are from time to time designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest and foreign exchange rates. The Company’s derivatives are classified as Level 2 of the fair value hierarchy and there were no transfers between the levels during this or comparable periods. During the first quarter of 2018, forward contracts designated as cash flow hedges of certain external purchasing were terminated. The loss associated with such termination was not material. Financial Statement Presentation The Company enters into master netting agreements, International Swaps and Derivatives Association (ISDA) agreements with all derivative counterparties. The netting agreements allow for netting of exposures in the event of default or breach of the counterparty agreement. The fair values in the Condensed Consolidated Balance Sheets have been presented on a gross basis. Derivative financial instruments designated and non-designated as hedging instruments are included in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, as follows: June 30, 2018 Fair Value Measurements Nominal Value Derivative Asset (Other current/non current assets) Derivative Liability (Other current/non current liabilities) Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 105 $ - $ - Total derivatives not designated as hedging instruments $ 105 $ - $ - December 31, 2017 Fair Value Measurements Nominal Value Derivative Asset (Other current/non current assets) Derivative Liability (Other current/non current liabilities) Derivatives designated as hedging instruments Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 67 $ - $ 1 Total derivatives designated as hedging instruments $ 67 $ - $ 1 Gains and losses on derivative financial instruments for the three and six months ended June 30, 2018 and 2017 are as follows: Three months ended June 30, 2018 June 30, 2017 Foreign Foreign exchange swaps Foreign exchange forward contracts Foreign exchange swaps Foreign currency risk - Cost of sales: Recorded into gain (loss) $ - $ (2 ) $ - $ 2 Recorded gains (loss) into AOCI net of tax - - (2 ) - Less: reclassified from AOCI into gain (loss) (1 ) - 2 - $ 1 $ (2 ) $ (4 ) $ 2 Six months ended June 30, 2018 June 30, 2017 Foreign exchange forward contracts Foreign exchange swaps Foreign exchange forward contracts Foreign exchange swaps Foreign currency risk - Cost of sales: Recorded gains (loss) into AOCI net of tax $ - $ - $ (3 ) $ - Less: Reclassified from AOCI gain (loss) (1 ) - 3 - $ 1 $ - $ (6 ) $ - Contingent consideration - The fair value of the contingent consideration relating to the M/A-COM acquisition on August 17, 2015 is re-measured on a recurring basis. The fair value measurements are generally determined using unobservable inputs and are classified within Level 3 of the fair value hierarchy. The Company adjusted the fair value of the earn-out liability to $14 million in the first quarter of 2017 based on actual revenue levels to date as well as changes in the estimated probability of different revenue scenarios for the remaining contractual earn-out period. Income of approximately $13 million was recognized within Other income in the Unaudited Condensed Consolidated Statements of Operations in the first quarter of 2017 due to the decrease in the contingent consideration liability. The remaining fair value of the earn-out liability of $14 million as of December 31, 2017 was fully released to and recognized within Other income in the first quarter of 2018, driven by changes in the estimated probability of different revenue scenarios for the remaining contractual earn-out period such that management no longer believes that there are any scenarios under which the earn-out criteria could be met. Management has updated its analysis as of June 30, 2018 and continues to believe that the fair value of the contingent consideration is $0 million. Items Measured at Fair Value on a Non-Recurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. The fair value measurements are generally determined using unobservable inputs and are classified within Level 3 of the fair value hierarchy. 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 included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. 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 expected life of the long-lived assets. The tables below present information about certain of the Company’s long-lived assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017. June 30, 2018 December 31, 2017 Fair value measurements Impairment Fair value measurements Impairment (Dollars in millions) Level 3 Losses Level 3 Losses Goodwill 1) $ 291 $ - $ 292 $ (234 ) Intangible assets, net 2) 109 - 122 (12 ) 1) In the fourth quarter of 2017, the Company recognized an impairment charge of the full goodwill related to ANBS, resulting in an impairment loss of $234 million, which was included in earnings for the period. The primary driver of the goodwill impairment was due to the lower expected long-term operating cash flow performance of the business unit as of the measurement date. The remaining goodwill balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. 2) In the first quarter of 2017, the Company recognized an impairment charge to amortization of intangibles of $12 million related to a contract with an OEM customer of M/A-COM products, which was included in earnings for the period. As of December 31, 2017, the intangible value related to this customer contract was fully amortized. The remaining intangibles balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The income tax provision for the three month and six month periods ended June 30 , In December 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The Company has completed its accounting for the effects on the Company’s deferred tax balances as of the enactment date. Pursuant Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company assesses all available evidence, both positive and negative, to determine the amount of any required valuation allowance. Valuation allowances have been established for the Company’s US, Swedish, and Japanese operations and the Company’s joint venture in Japan. The The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in tax expense. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | 7. Inventories Inventories are stated at the lower of cost (principally FIFO) and net realizable value. The components of inventories were as follows: As of June 30, 2018 December 31, 2017 Raw materials $ 112 $ 90 Work in progress 16 21 Finished products 52 70 Inventories $ 180 $ 181 Inventory valuation reserve (23 ) (27 ) Total inventories, net of reserve $ 157 $ 154 |
Equity Method Investment
Equity Method Investment | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Method Investment | 8. Equity Method Investment As of June 30, 2018, the Company has one equity method investment. On April 18, 2017, Autoliv and Volvo Cars completed the formation of their joint venture, Zenuity AB. Business Combinations (Topic 805) – Clarifying the Definition of a Business Consolidation At the end of the first quarter of 2018, Veoneer contributed SEK 600 million (approximately $71 million) in cash (representing 50% of the total contribution, with the remainder made by Volvo Cars) into Zenuity to support its future operating cash flow needs. The profit and loss attributed to the investment is shown in the line item Loss from equity method investment in the Unaudited Condensed Consolidated Statements of Operations. Veoneer’s share of Zenuity’s loss for the three and six months ended June 30, 2018 was $16 million and $30 million, respectively. Veoneer’s share of Zenuity’s loss for the three and six months ended June 30, 2017 was $8 million for both periods. As of June 30, 2018, the Company’s equity investment in Zenuity amounted to $134 million after consideration of foreign exchange movements. Certain Unaudited Summarized Income Statement information of Zenuity, for the three and six months ended June 30, 2018 and 2017, is shown below: Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Net sales $ 2 $ 1 $ 3 $ 1 Gross profit - - - - Operating loss (32 ) (16 ) (60 ) (16 ) Loss before income taxes (32 ) (16 ) (60 ) (16 ) Net loss $ (32 ) $ (16 ) $ (60 ) $ (16 ) |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 9. Accrued Expenses As of June 30, 2018 December 31, 2017 Operating related accruals $ 53 $ 55 Employee related accruals 63 57 Customer pricing accruals 56 36 Product related liabilities 1 23 22 Other accruals 21 25 Total Accrued Expenses $ 216 $ 195 1 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 10. Retirement Plans Defined Benefit Pension Plans The defined benefit pension plans impacting the Veoneer financial results include the following: Existing Veoneer Plans which are comprised of plans in Japan, Canada, and France, which are comprised of plans in Germany, India, Japan, and South Korea, and which are comprised of plans in Sweden and the U.S. The combination of the Existing Veoneer Plans Transferred Veoneer Plans Autoliv Sponsored Plans Existing Veoneer Plans The The Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 1 1 1 1 Expected return on plan assets - (1 ) (1 ) (1 ) Net periodic benefit cost $ 2 $ 1 $ 2 $ 2 The service cost and amortization of prior service cost components are reported among employee compensation costs in the Unaudited Condensed Consolidated Statements of Operations. The remaining components (interest cost, expected return on plan assets and amortization of actuarial loss) are reported as Other non-operating items, net in the Unaudited Condensed Consolidated Statements of Operations. Transferred Veoneer Plans Prior to the plan transfers Country Name of Defined Benefit Pans Germany Direct Pension Promises Plan India Gratuity Plan Japan Retirement Allowances Plan Defined Benefit Corporate Plan South Korea Severance Pay Plan (statutory plan) On Changes in Benefit Obligations and Plans Assets As of June 30, 2018 Benefit obligation as of April 1, 2018 $ - Service cost - Interest cost - Benefits paid - Obligation transferred in 6 Benefit obligation at end of the period $ 6 Fair value of plan assets as of April 1, 2018 Company contributions - Benefits paid - Plan assets transferred in - Fair value of plan assets at end of the period $ - Funded status recognized in the balance sheet $ (6 ) Components of Net Periodic Benefit Cost Associated with the Defined Benefit Retirement Plan The Components of Accumulated other Comprehensive Income Before Tax As of June 30, 2018 Net actuarial loss (gain) $ (1 ) Prior service cost (credit) - Total accumulated other comprehensive income recognized in the balance sheet $ (1 ) The service cost and amortization of prior service cost components are reported among employee compensation costs in the Unaudited Condensed Consolidated Statements of Operations. The remaining components (interest cost, expected return on plan assets and amortization of actuarial loss) are reported as other non-operating items, net in the Unaudited Condensed Autoliv Sponsored Plans Prior Country Name of Defined Benefit Pans Sweden ITP plan U.S. Autoliv ASP, Inc. Pension Plan Autoliv ASP, Inc. Excess Pension Plan Autoliv ASP, Inc. Supplemental Pension Plan On April 1, 2018, it was determined that the assets, liabilities, and associated accumulated other comprehensive income On June 29, 2018, it was also determined that the assets, liabilities, and associated accumulated other comprehensive income (loss) of the U.S. plan for all Veoneer employees included in the U.S. plan will remain with Autoliv and benefits will be paid out of that plan in the future upon retirement. The Veoneer employees were considered to be participating in the Autoliv sponsored plan through June 29, 2018 at which date the plan was amended to freeze the accrual of benefits for any Veoneer employees. The U.S. plan resulted in less than $1 million of Prior Postretirement Benefits other than Pension In |
Stock Incentive Plan
Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plan | 11. Stock Incentive Plan Prior The conversion that occurred on the Distribution Date of Veoneer was based on the following: • Stock Option (SOs) - A number of SOs comprising 50% of the value of the outstanding SOs calculated immediately • Restricted Stock Units (RSUs) - A number of RSUs comprising 50% of the value of the outstanding RSU calculated • Performance Shares (PSs) - Outstanding PSs pre Spin-Off were converted to time-based RSUs and were treated 1) The level of actual achievement of performance goals for each outstanding PSs for the period between the first 1) The In each case above, the conversion was intended to generally preserve the intrinsic value of the original award determined As Compensation – Stock Compensation. With certain limited The Company recorded approximately $1 million and $2 million stock-based compensation expense related to RSUs and PSs for the three and six months ended June 30, 2018, respectively. During the three and six months ended June 30, 2017, the Company recorded $1 million and $2 million, respectively, of stock-based compensation expense related to RSUs and PSs. Veoneer, Inc. 2018 Stock Incentive Plan was established and effective on June 29, 2018 to govern the Company’s stock-based awards that will be granted in the future. Veoneer, Inc. 2018 Stock Incentive Plan authorizes the grant of 3 million shares of Veoneer common stock for future equity awards to Veoneer employees and non-employee directors as well as authorizes up to 1.5 million additional shares to be used for the conversion of outstanding Autoliv stock awards in connection with the Spin-Off. Approximately 1 million shares were used for the conversion of the outstanding grants. |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Loss Contingency [Abstract] | |
Contingent Liabilities | 12. Contingent Liabilities Legal Proceedings Various claims, lawsuits and proceedings are pending or threatened against the Company, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Veoneer, but the Company cannot provide assurance that Veoneer will not experience material litigation, product liability or other losses in the future. Product Warranty, Recalls, and Intellectual Property Veoneer is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by the Company or expected by the customer. Accordingly, the future costs of warranty claims by the customers may be material. However, the Company believes its established reserves are adequate. Veoneer’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates. In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations. The Company carries insurance for potential recall and product liability claims at coverage levels based on the Company’s prior claims experience. Veoneer cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in the Company’s businesses, now or in the future, or that such coverage always will be available should the Company, now or in the future, wish to extend, increase or otherwise adjust the Company’s insurance. In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material. The table in Note 9 – Accrued Expenses summarizes the change in the balance sheet position of the product related liabilities. Product Related Liabilities The The Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Reserve at beginning of the period $ 23 $ 22 $ 22 $ 30 Change in reserve 1 1 8 - Cash payments (1 ) (3 ) (7 ) (10 ) Translation difference - - - - Reserve at end of the year $ 23 $ 20 $ 23 $ 20 For Agreements Guarantees Veoneer has certain guarantees in place and as of June 30, 2018 and December 31, 2017, directly guaranteeing $13 million of such obligations. These represent the maximum potential amount of future (undiscounted) payments that Veoneer could be required to make under the guarantees in the event of default by the guaranteed parties. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 13. Loss per Basic loss loss loss (U.S. dollars in millions, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Numerator: Basic and diluted: Net loss attributable to common shareholders $ (63 ) $ (28 ) $ (95 ) $ (48 ) Denominator: Basic: Weighted average number of shares outstanding (in millions) 87.13 87.13 87.13 87.13 Diluted: Weighted-average number of shares outstanding, assuming dilution (in millions) 1 87.13 87.13 87.13 87.13 Basic loss per share $ (0.72 ) $ (0.32 ) $ (1.09 ) $ (0.55 ) Diluted loss per share $ (0.72 ) $ (0.32 ) $ (1.09 ) $ (0.55 ) 1 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information The Company has two operating segments, Electronics and Brake Systems. Electronics includes all of electronics resources and expertise, restraint control systems and active safety products and Brake Systems provides brake control and actuation systems. The operating results of the operating segments are regularly reviewed by the Company’s chief operating decision maker to assess the performance of the individual operating segments and make decisions about resources to be allocated to the operating segments. Three Months Ended June 30 Six Months Ended June 30 (LOSS)/INCOME BEFORE INCOME TAXES 2018 2017 2018 2017 Electronics $ (31 ) $ (7 ) $ (32 ) $ (9 ) Brake Systems (4 ) (1 ) (12 ) (3 ) Segment operating (loss)/income (35 ) (8 ) (44 ) (12 ) Corporate and other (13 ) (4 ) (20 ) (10 ) Interest and other non-operating items, net 1 1 1 - Loss from equity method investment (16 ) (8 ) (30 ) (8 ) Loss before income taxes $ (63 ) $ (19 ) $ (93 ) $ (30 ) |
Relationship with Former Parent
Relationship with Former Parent and Related Entities | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Relationship with Former Parent and Related Entities | 15. Relationship with Former Parent and Related Entities Historically, Veoneer has been managed and operated in the normal course of business with other affiliates of Autoliv. Accordingly, certain shared costs have been allocated to Veoneer and reflected as expenses in the stand-alone Unaudited Condensed Consolidated Financial Statements. Management of Autoliv and Veoneer consider the allocation methodologies used to be reasonable and appropriate reflections of historical expenses of Autoliv attributable to Veoneer for purposes of the stand-alone Financial Statements; however, the expenses reflected in the Unaudited Condensed Consolidated Financial Statements may not be indicative of the actual expenses that would have been incurred during the periods presented if Veoneer historically operated as a separate, stand-alone entity. In addition, the expenses reflected in the Unaudited Condensed Consolidated Financial Statements may not be indicative of expenses that will be incurred in the future by Veoneer. Prior to the Spin-Off, transactions between Autoliv and Veoneer, with the exception of sales and purchase transactions and reimbursements for payments made to third-party service providers by Autoliv on Veoneer’s behalf, are reflected in equity in the Condensed Consolidated Balance Sheets as Net Former Parent investment and in the Unaudited Condensed Consolidated Statements of Cash Flows as a financing activity in Net transfers from Former Parent. Transaction with other Autoliv Businesses Throughout the periods covered by the Unaudited Condensed Consolidated Financial Statements, Veoneer sold finished goods to Autoliv. Related party sales to other Autoliv businesses amount to $21 million and $43 million for the three and six months ended June 30, 2018, respectively, and $18 million and $35 million for the three and six months ended June 30, 2017, respectively. Related Party Balances Amounts due to and due from related parties are summarized in the below table: As of RELATED PARTY June 30, 2018 December 31, 2017 Related party receivable $ 71 $ - Related party notes receivable - 76 Related party payables 47 5 Related party long-term debt 13 62 Related party receivables are mainly driven by Reseller Agreements put in place in connection with the Spin-Off. The Reseller Agreements are between Autoliv and Veoneer to facilitate the temporary arrangement of the sale of Veoneer products manufactured for certain customers for a limited period post Spin-Off. Autoliv will collect the customer payments and will remit the payments to Veoneer. As of December 31, 2017, related party notes receivables relate to a long term loan between Veoneer and Autoliv entities, which was subsequently settled prior to the Spin-Off. As of June 30, 2018, the related party payables mainly relate to an agreement between Veoneer-Nissin Brake Systems and various Autoliv companies. A portion of the related party long-term debt is subject to a long term loan agreement that was settled on June 29, 2018. As of June 30, 2018, all related party debt agreements were settled or terminated, with the exception of a capital lease arrangement at Veoneer Nissin Brake Systems (a 51% owned subsidiary) of $13 million and $11 million as of June 30, 2018 and December 31, 2017, respectively. The capital lease is with Nissin Kogyo, the 49% owner of Veoneer Nissin Brake Systems. Corporate Costs/Allocations For the periods prior to April 1, 2018, the Unaudited Condensed Combined Financial Statements include corporate costs incurred by Autoliv for services that are provided to or on behalf of Veoneer. These costs consist of allocated cost pools and direct costs. Corporate costs have been directly charged to, or allocated to, Veoneer using methods management believes are consistent and reasonable. The method for allocating corporate function costs to Veoneer is based on various formulas involving allocation factors. The methods for allocating corporate administration costs to Veoneer are based on revenue, headcount, or other relevant metrics. However, the expenses reflected in the Unaudited Condensed Consolidated Financial Statements may not be indicative of the actual expenses that would have been incurred during the periods presented if Veoneer historically operated as a separate, stand-alone entity. All corporate charges and allocations have been deemed paid by Veoneer to Autoliv in the period in which the cost was recorded in the Unaudited Condensed Consolidated Statements of Operations. Effective April 1, 2018, Veoneer began performing certain functions using internal resources or third parties, and certain services continued to be provided by Autoliv and directly charged to Veoneer. In addition, Veoneer personnel perform certain services for Autoliv, which is directly charged to Autoliv. Allocated corporate costs included in Costs of sales, Selling, general and administrative expenses and Research, development and engineering expenses were for shared services and infrastructure provided, which includes costs such as information technology, accounting, legal, real estate and facilities, corporate advertising, risk and insurance services, treasury, shareholder services and other corporate and infrastructure services. Cash Management and Financing Prior to the Spin-Off, Veoneer participated in Autoliv’s centralized cash management and financing programs. Disbursements were made through centralized accounts payable systems, which are operated by Autoliv. Cash receipts are transferred to centralized accounts, also maintained by Autoliv. As cash was disbursed and received by Autoliv, it was accounted for by Veoneer through the Net Former Parent investment. All short-term and long-term debt was financed by Autoliv or by Nissin Kogyo and financing decisions for wholly and majority owned subsidiaries were determined by Autoliv’s corporate treasury operations. On the Distribution Date, Veoneer held approximately $1 billion of cash and cash equivalents. Upon Spin-Off, Veoneer created its own corporate treasury operations. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. On the Distribution Date, Veoneer held approximately $1 billion of cash and cash equivalents. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the “Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. In the first quarter of 2018, the Company elected to treat any potential GILTI inclusions as a period cost. In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In October 2016, the FASB issued ASU 2016-16 , Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory In May 2014, the FASB issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606), Balance Sheet (Dollars in millions) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets Inventories, net $ 154 $ (5 ) $ 149 Prepaid expenses and contract assets 34 7 41 Equity Net Former Parent investment 844 1 845 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Income Statement (Dollars in millions) As Reported Balances without adoption of ASC 606 Effect of Changes As Reported Balances without adoption of ASC 606 Effect of Changes Net sales $ 572 $ 573 $ (1 ) $ 1,166 $ 1,166 $ - Cost of sales (460 ) (461 ) 1 (943 ) (943 ) - Operating loss (48 ) (48 ) - (64 ) (64 ) - As of June 30, 2018 Balance Sheet (Dollars in millions) As Reported Balances without adoption of ASC 606 Effect of Changes Assets Inventories, net $ 157 $ 162 $ (5 ) Prepaid expenses and other current assets 29 22 7 Equity Additional paid-in capital 1,915 1,914 1 Accounting Standards Issued But Not Yet Adopted In August 2017, the FASB issued ASU 2017-12, Derivative and Hedging (Topic 815) Targeted improvements to accounting for hedging activities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Financial Instruments | The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Level 1 - Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 - Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. Level 3 - Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Certain assets and liabilities are measured at fair value on a nonrecurring basis. The fair value measurements are generally determined using unobservable inputs and are classified within Level 3 of the fair value hierarchy. 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 included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. 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 expected life of the long-lived assets. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
ASU 2014-09 | |
Adjustments Made Due to ASU 2014-09 | The table below shows the adjustments made due to ASU 2014-09. Balance Sheet (Dollars in millions) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Assets Inventories, net $ 154 $ (5 ) $ 149 Prepaid expenses and contract assets 34 7 41 Equity Net Former Parent investment 844 1 845 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Income Statement (Dollars in millions) As Reported Balances without adoption of ASC 606 Effect of Changes As Reported Balances without adoption of ASC 606 Effect of Changes Net sales $ 572 $ 573 $ (1 ) $ 1,166 $ 1,166 $ - Cost of sales (460 ) (461 ) 1 (943 ) (943 ) - Operating loss (48 ) (48 ) - (64 ) (64 ) - As of June 30, 2018 Balance Sheet (Dollars in millions) As Reported Balances without adoption of ASC 606 Effect of Changes Assets Inventories, net $ 157 $ 162 $ (5 ) Prepaid expenses and other current assets 29 22 7 Equity Additional paid-in capital 1,915 1,914 1 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Disaggregated by Primary Region and Products of Revenue Recognition | In the following tables, revenue is disaggregated by primary region and products of revenue recognition. Net Sales by Region (Dollars in millions) Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 104 $ 96 $ 200 $ 117 $ 89 $ 206 Americas 173 15 188 180 34 214 Europe 184 - 184 160 - 160 Total region sales 461 111 572 457 123 580 Less: intercompany sales - - - - (1 ) (1 ) Total $ 461 $ 111 $ 572 $ 457 $ 122 $ 579 Net Sales by Region (Dollars in millions) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 216 $ 195 $ 411 $ 240 $ 175 $ 415 Americas 351 30 381 359 70 429 Europe 374 - 374 321 - 321 Total region sales 941 225 1,166 920 245 1,165 Less: intercompany sales - - - - (3 ) (3 ) Total $ 941 $ 225 $ 1,166 $ 920 $ 242 $ 1,162 Net Sales by Products (Dollars in millions) Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 246 $ - $ 246 $ 266 $ - $ 266 Active Safety products 215 - 215 191 - 191 Brake Systems - 111 111 - 123 123 Total product sales 461 111 572 457 123 580 Less: intercompany sales - - - - (1 ) (1 ) Total net sales $ 461 $ 111 $ 572 $ 457 $ 122 $ 579 Net Sales by Products (Dollars in millions) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 514 $ - $ 514 $ 537 $ - $ 537 Active Safety products 427 - 427 383 - 383 Brake Systems - 225 225 - 245 245 Total product sales 941 225 1,166 920 245 1,165 Less: intercompany sales - - - - (3 ) (3 ) Total net sales $ 941 $ 225 $ 1,166 $ 920 $ 242 $ 1,162 |
Summary of Information about Receivables and Contract Assets from Contracts with Customers | The following tables provide information about receivables and contract assets from contracts with customers. Contract Balances with Customers (Dollars in millions) As of June 30, 2018 December 31, 2017 Receivables, net $ 439 $ 460 Contract assets 1 7 - 1 Receivables, net of allowance (Dollars in millions) As of June 30, 2018 December 31, 2017 Receivables $ 441 $ 462 Allowance at beginning of period (2 ) (4 ) Net decrease/(increase) of allowance - 2 Allowance at end of period (2 ) (2 ) Receivables, net of allowance $ 439 $ 460 |
Summary of Changes in Contract Assets | Changes in the contract asset balances during the period are as follows: Change in Contract Balances with Customers 1 (Dollars in millions) Three months ended Six months ended June 30, 2018 June 30, 2018 Contract assets Contract assets Beginning balance $ 8 $ - Increases due to cumulative catch up adjustment - 7 Increases due to revenue recognized 7 15 Decreases due to transfer to receivables (8 ) (15 ) Ending balance $ 7 $ 7 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Derivative Financial Instruments Designated and Non-designated as Hedging Instruments | The fair values in the Condensed Consolidated Balance Sheets have been presented on a gross basis. Derivative financial instruments designated and non-designated as hedging instruments are included in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, as follows: June 30, 2018 Fair Value Measurements Nominal Value Derivative Asset (Other current/non current assets) Derivative Liability (Other current/non current liabilities) Derivatives not designated as hedging instruments Foreign exchange swaps, less than 6 months $ 105 $ - $ - Total derivatives not designated as hedging instruments $ 105 $ - $ - December 31, 2017 Fair Value Measurements Nominal Value Derivative Asset (Other current/non current assets) Derivative Liability (Other current/non current liabilities) Derivatives designated as hedging instruments Foreign exchange forward contracts, less than 1 year (cash flow hedge) $ 67 $ - $ 1 Total derivatives designated as hedging instruments $ 67 $ - $ 1 |
Gains and Losses on Derivative Financial Instruments | Gains and losses on derivative financial instruments for the three and six months ended June 30, 2018 and 2017 are as follows: Three months ended June 30, 2018 June 30, 2017 Foreign Foreign exchange swaps Foreign exchange forward contracts Foreign exchange swaps Foreign currency risk - Cost of sales: Recorded into gain (loss) $ - $ (2 ) $ - $ 2 Recorded gains (loss) into AOCI net of tax - - (2 ) - Less: reclassified from AOCI into gain (loss) (1 ) - 2 - $ 1 $ (2 ) $ (4 ) $ 2 Six months ended June 30, 2018 June 30, 2017 Foreign exchange forward contracts Foreign exchange swaps Foreign exchange forward contracts Foreign exchange swaps Foreign currency risk - Cost of sales: Recorded gains (loss) into AOCI net of tax $ - $ - $ (3 ) $ - Less: Reclassified from AOCI gain (loss) (1 ) - 3 - $ 1 $ - $ (6 ) $ - |
Long-lived Assets Measured at Fair Value on Non-recurring Basis | The tables below present information about certain of the Company’s long-lived assets measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017. June 30, 2018 December 31, 2017 Fair value measurements Impairment Fair value measurements Impairment (Dollars in millions) Level 3 Losses Level 3 Losses Goodwill 1) $ 291 $ - $ 292 $ (234 ) Intangible assets, net 2) 109 - 122 (12 ) 1) In the fourth quarter of 2017, the Company recognized an impairment charge of the full goodwill related to ANBS, resulting in an impairment loss of $234 million, which was included in earnings for the period. The primary driver of the goodwill impairment was due to the lower expected long-term operating cash flow performance of the business unit as of the measurement date. The remaining goodwill balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. 2) In the first quarter of 2017, the Company recognized an impairment charge to amortization of intangibles of $12 million related to a contract with an OEM customer of M/A-COM products, which was included in earnings for the period. As of December 31, 2017, the intangible value related to this customer contract was fully amortized. The remaining intangibles balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows: As of June 30, 2018 December 31, 2017 Raw materials $ 112 $ 90 Work in progress 16 21 Finished products 52 70 Inventories $ 180 $ 181 Inventory valuation reserve (23 ) (27 ) Total inventories, net of reserve $ 157 $ 154 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Unaudited Income Statement Information | Certain Unaudited Summarized Income Statement information of Zenuity, for the three and six months ended June 30, 2018 and 2017, is shown below: Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Net sales $ 2 $ 1 $ 3 $ 1 Gross profit - - - - Operating loss (32 ) (16 ) (60 ) (16 ) Loss before income taxes (32 ) (16 ) (60 ) (16 ) Net loss $ (32 ) $ (16 ) $ (60 ) $ (16 ) |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | As of June 30, 2018 December 31, 2017 Operating related accruals $ 53 $ 55 Employee related accruals 63 57 Customer pricing accruals 56 36 Product related liabilities 1 23 22 Other accruals 21 25 Total Accrued Expenses $ 216 $ 195 1 |
Retirement Plans (Tables)
Retirement Plans (Tables) - Pension Plans, Defined Benefit | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Components of Net Periodic Benefit Cost | The Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 1 1 1 1 Expected return on plan assets - (1 ) (1 ) (1 ) Net periodic benefit cost $ 2 $ 1 $ 2 $ 2 |
Schedule of Changes in Benefit Obligations and Plan Assets | Changes in Benefit Obligations and Plans Assets As of June 30, 2018 Benefit obligation as of April 1, 2018 $ - Service cost - Interest cost - Benefits paid - Obligation transferred in 6 Benefit obligation at end of the period $ 6 Fair value of plan assets as of April 1, 2018 Company contributions - Benefits paid - Plan assets transferred in - Fair value of plan assets at end of the period $ - Funded status recognized in the balance sheet $ (6 ) |
Schedule of Components of Accumulated Other Comprehensive Income Before Tax | Components of Accumulated other Comprehensive Income Before Tax As of June 30, 2018 Net actuarial loss (gain) $ (1 ) Prior service cost (credit) - Total accumulated other comprehensive income recognized in the balance sheet $ (1 ) |
Transferred Veoneer Plans | |
Schedule of Legal Name of the Plans | Prior to the plan transfers Country Name of Defined Benefit Pans Germany Direct Pension Promises Plan India Gratuity Plan Japan Retirement Allowances Plan Defined Benefit Corporate Plan South Korea Severance Pay Plan (statutory plan) |
Autoliv Sponsored Plans | |
Schedule of Legal Name of the Plans | Prior Country Name of Defined Benefit Pans Sweden ITP plan U.S. Autoliv ASP, Inc. Pension Plan Autoliv ASP, Inc. Excess Pension Plan Autoliv ASP, Inc. Supplemental Pension Plan |
Contingent Liabilities (Tables)
Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loss Contingency [Abstract] | |
Schedule of Change in Balance Sheet Position of Product Related Liabilities | The Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Reserve at beginning of the period $ 23 $ 22 $ 22 $ 30 Change in reserve 1 1 8 - Cash payments (1 ) (3 ) (7 ) (10 ) Translation difference - - - - Reserve at end of the year $ 23 $ 20 $ 23 $ 20 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted loss per share for the three and (U.S. dollars in millions, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 Numerator: Basic and diluted: Net loss attributable to common shareholders $ (63 ) $ (28 ) $ (95 ) $ (48 ) Denominator: Basic: Weighted average number of shares outstanding (in millions) 87.13 87.13 87.13 87.13 Diluted: Weighted-average number of shares outstanding, assuming dilution (in millions) 1 87.13 87.13 87.13 87.13 Basic loss per share $ (0.72 ) $ (0.32 ) $ (1.09 ) $ (0.55 ) Diluted loss per share $ (0.72 ) $ (0.32 ) $ (1.09 ) $ (0.55 ) 1 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of (Loss)/Income Before Income Taxes | Three Months Ended June 30 Six Months Ended June 30 (LOSS)/INCOME BEFORE INCOME TAXES 2018 2017 2018 2017 Electronics $ (31 ) $ (7 ) $ (32 ) $ (9 ) Brake Systems (4 ) (1 ) (12 ) (3 ) Segment operating (loss)/income (35 ) (8 ) (44 ) (12 ) Corporate and other (13 ) (4 ) (20 ) (10 ) Interest and other non-operating items, net 1 1 1 - Loss from equity method investment (16 ) (8 ) (30 ) (8 ) Loss before income taxes $ (63 ) $ (19 ) $ (93 ) $ (30 ) |
Relationship with Former Pare33
Relationship with Former Parent and Related Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Amount Due to and from Related Parties | Amounts due to and due from related parties are summarized in the below table: As of RELATED PARTY June 30, 2018 December 31, 2017 Related party receivable $ 71 $ - Related party notes receivable - 76 Related party payables 47 5 Related party long-term debt 13 62 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - Spin-Off - Autoliv | Jun. 29, 2018 | Jun. 30, 2018 |
Basis Of Presentation [Line Items] | ||
Distribution percentage of outstanding common stock in spinoff transaction | 100.00% | |
Stock holders equity spin off description | Each Autoliv stockholder and holder of Autoliv’s Swedish Depository Receipts (SDRs) of record as of certain specified dates received one share of Veoneer common stock or one Veoneer SDR, respectively, for every one share of Autoliv common stock or Autoliv SDR held as of a certain date. | |
Spin-Off completion date | Jun. 29, 2018 | |
SDR | ||
Basis Of Presentation [Line Items] | ||
Spin off conversion ratio | 1 | |
Common Stock | ||
Basis Of Presentation [Line Items] | ||
Spin off conversion ratio | 1 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 29, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 980 | $ 1,000 | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Adjustments Made Due to ASU 2014-09 Impact on Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Inventories, net | $ 157 | $ 154 | |
Prepaid expenses and contract assets | 29 | 34 | |
Equity | |||
Net Former Parent investment | $ 844 | ||
Additional paid-in capital | 1,915 | ||
ASU 2014-09 | |||
Assets | |||
Inventories, net | $ 149 | ||
Prepaid expenses and contract assets | 41 | ||
Equity | |||
Net Former Parent investment | 845 | ||
Adjustments due to ASU 2014-09 / Effect of Changes | ASU 2014-09 | |||
Assets | |||
Inventories, net | (5) | (5) | |
Prepaid expenses and contract assets | 7 | 7 | |
Equity | |||
Net Former Parent investment | $ 1 | ||
Additional paid-in capital | 1 | ||
Balances without adoption of ASC 606 | ASU 2014-09 | |||
Assets | |||
Inventories, net | 162 | ||
Prepaid expenses and contract assets | 22 | ||
Equity | |||
Additional paid-in capital | $ 1,914 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Adjustments Made Due to ASU 2014-09 Impact on Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Net sales | $ 572 | $ 579 | $ 1,166 | $ 1,162 |
Cost of sales | (460) | (459) | (943) | (929) |
Operating loss | (48) | $ (12) | (64) | $ (22) |
Balances without adoption of ASC 606 | ASU 2014-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Net sales | 573 | 1,166 | ||
Cost of sales | (461) | (943) | ||
Operating loss | (48) | $ (64) | ||
Adjustments due to ASU 2014-09 / Effect of Changes | ASU 2014-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Net sales | (1) | |||
Cost of sales | $ 1 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Capitalized Contract Cost [Line Items] | ||
Capitalized payments | $ 12,000,000 | |
Impairment losses recognized related to contract assets | $ 0 | $ 0 |
Number of operating segments | Segment | 2 | |
Production parts average payment terms | 30 days | |
Other Non-current Assets | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized payments | $ 43,000,000 | $ 23,000,000 |
Revenue Disaggregated by Primar
Revenue Disaggregated by Primary Region and Products of Revenue Recognition (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 572 | $ 579 | $ 1,166 | $ 1,162 |
Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 572 | 580 | 1,166 | 1,165 |
Operating Segments | Restraint Control Systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 246 | 266 | 514 | 537 |
Operating Segments | Active Safety Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 215 | 191 | 427 | 383 |
Operating Segments | Brake Systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 111 | 123 | 225 | 245 |
Intersegment Elimination | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | (1) | (3) | ||
Electronics | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 461 | 457 | 941 | 920 |
Electronics | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 461 | 457 | 941 | 920 |
Electronics | Operating Segments | Restraint Control Systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 246 | 266 | 514 | 537 |
Electronics | Operating Segments | Active Safety Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 215 | 191 | 427 | 383 |
Brake Systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 111 | 122 | 225 | 242 |
Brake Systems | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 111 | 123 | 225 | 245 |
Brake Systems | Operating Segments | Brake Systems | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 111 | 123 | 225 | 245 |
Brake Systems | Intersegment Elimination | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | (1) | (3) | ||
Asia | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 200 | 206 | 411 | 415 |
Asia | Electronics | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 104 | 117 | 216 | 240 |
Asia | Brake Systems | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 96 | 89 | 195 | 175 |
Americas | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 188 | 214 | 381 | 429 |
Americas | Electronics | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 173 | 180 | 351 | 359 |
Americas | Brake Systems | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 15 | 34 | 30 | 70 |
Europe | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 184 | 160 | 374 | 321 |
Europe | Electronics | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 184 | $ 160 | $ 374 | $ 321 |
Summary of Information about Co
Summary of Information about Contract Balances with Customers (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||
Contract With Customer Asset And Liability [Abstract] | |||||
Receivables, net | $ 439 | $ 460 | |||
Contract assets | [2] | $ 7 | [1] | $ 8 | |
[1] | Included in prepaid expenses and contract assets | ||||
[2] | The contract asset is determined at each period end, this table reflects the rollforward of the period end balance. |
Summary of Information about Re
Summary of Information about Receivables, Net of Allowance (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Contract With Customer Asset And Liability [Abstract] | ||
Receivables | $ 441 | $ 462 |
Allowance at beginning of period | (2) | (4) |
Net decrease/(increase) of allowance | 0 | 2 |
Allowance at end of period | (2) | (2) |
Receivables, net of allowance | $ 439 | $ 460 |
Summary of Changes in Contract
Summary of Changes in Contract Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | ||
Contract assets | |||
Beginning balance | [1] | $ 8 | |
Increases due to cumulative catch up adjustment | [1] | $ 7 | |
Increases due to revenue recognized | [1] | 7 | 15 |
Decreases due to transfer to receivables | [1] | (8) | (15) |
Ending balance | [1],[2] | $ 7 | $ 7 |
[1] | The contract asset is determined at each period end, this table reflects the rollforward of the period end balance. | ||
[2] | Included in prepaid expenses and contract assets |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Millions | Nov. 01, 2017USD ($)Engineering_Expert | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 291 | $ 292 | |
Fotonic i Norden dp AB | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 17 | ||
Consideration transferred in cash | 15 | ||
Deferred purchase consideration | $ 2 | $ 2 | |
Deferred purchase consideration period | 18 months | ||
Number of Lidar and Time of Flight engineering experts acquired | Engineering_Expert | 35 | ||
Net assets acquired | $ 17 | ||
Business combination, intangible assets | 4 | ||
Goodwill | $ 13 | ||
Fotonic i Norden dp AB | IP | |||
Business Acquisition [Line Items] | |||
Intangible assets remaining useful life | 5 years | ||
Intangible assets, amortization method | straight-line basis |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)Contract | Dec. 31, 2017USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value of earn-out liability | $ 14 | $ 14 | ||
Other operating income from earn out liability adjustment | $ 14 | $ 13 | ||
Fair value of contingent consideration | $ 0 | |||
Foreign Exchange Swaps | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Maturity period of swap contracts | 6 months | |||
Foreign Exchange Swaps | Maturity Beyond Six Months | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Number of foreign currency derivatives held | Contract | 0 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Financial Instruments Designated and Non-designated as Hedging Instruments (Details) - Fair Value, Measurements, Recurring - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Not Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Nominal Value | $ 105,000,000 | |
Derivative Not Designated as Hedging Instruments | Foreign Exchange Swaps | Less Than Six Months | ||
Derivatives Fair Value [Line Items] | ||
Nominal Value | $ 105,000,000 | |
Derivatives Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Nominal Value | $ 67,000,000 | |
Derivatives Designated as Hedging Instruments | Other Current and Non Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability | 1,000,000 | |
Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Less Than One Year | Cash Flow Hedging | ||
Derivatives Fair Value [Line Items] | ||
Nominal Value | 67,000,000 | |
Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Less Than One Year | Other Current and Non Current Liabilities | Cash Flow Hedging | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability | $ 1,000,000 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and Losses on Derivative Financial Instruments (Details) - Fair Value, Measurements, Recurring - Cost of Sales - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Foreign Exchange Forward Contracts | ||||
Derivatives Fair Value [Line Items] | ||||
Recorded gains (loss) into AOCI net of tax | $ (2) | $ (3) | ||
Less: reclassified from AOCI into gain (loss) | $ (1) | 2 | $ (1) | 3 |
Gains and losses on derivative financial instruments | 1 | (4) | $ 1 | $ (6) |
Foreign Exchange Swaps | ||||
Derivatives Fair Value [Line Items] | ||||
Recorded into gain (loss) | (2) | 2 | ||
Gains and losses on derivative financial instruments | $ (2) | $ 2 |
Fair Value Measurements - Long-
Fair Value Measurements - Long-lived Assets Measured at Fair Value on Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2018 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Goodwill, Impairment losses | [1] | $ (234) | |
Intangible assets, net, Impairment losses | [2] | (12) | |
Fair Value Measurements Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Goodwill, Fair value measurement | [1] | 292 | $ 291 |
Intangible assets, net, Fair value measurement | [2] | $ 122 | $ 109 |
[1] | In the fourth quarter of 2017, the Company recognized an impairment charge of the full goodwill related to ANBS, resulting in an impairment loss of $234 million, which was included in earnings for the period. The primary driver of the goodwill impairment was due to the lower expected long-term operating cash flow performance of the business unit as of the measurement date. The remaining goodwill balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. | ||
[2] | In the first quarter of 2017, the Company recognized an impairment charge to amortization of intangibles of $12 million related to a contract with an OEM customer of M/A-COM products, which was included in earnings for the period. As of December 31, 2017, the intangible value related to this customer contract was fully amortized. The remaining intangibles balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. |
Fair Value Measurements - Lon48
Fair Value Measurements - Long-lived Assets Measured at Fair Value on Non-recurring Basis (Parenthetical) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Goodwill impairment loss | [1] | $ 234 | ||
Impairment charge to contract with OEM customer | [2] | $ 12 | ||
M/A-COM Auto Solutions Business | Customer Contract | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment charge to contract with OEM customer | $ 12 | |||
Autoliv-Nissin Brakes Systems | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Goodwill impairment loss | $ 234 | |||
[1] | In the fourth quarter of 2017, the Company recognized an impairment charge of the full goodwill related to ANBS, resulting in an impairment loss of $234 million, which was included in earnings for the period. The primary driver of the goodwill impairment was due to the lower expected long-term operating cash flow performance of the business unit as of the measurement date. The remaining goodwill balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. | |||
[2] | In the first quarter of 2017, the Company recognized an impairment charge to amortization of intangibles of $12 million related to a contract with an OEM customer of M/A-COM products, which was included in earnings for the period. As of December 31, 2017, the intangible value related to this customer contract was fully amortized. The remaining intangibles balance as of June 30, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 3 | $ 11 | $ 10 | $ 22 | |
Income tax expense at federal statutory rate | 21.00% | 35.00% |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 112 | $ 90 |
Work in progress | 16 | 21 |
Finished products | 52 | 70 |
Inventories | 180 | 181 |
Inventory valuation reserve | (23) | (27) |
Total inventories, net of reserve | $ 157 | $ 154 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) kr in Millions, $ in Millions | Apr. 18, 2017USD ($) | Apr. 18, 2017SEK (kr) | Jun. 30, 2018USD ($)Investment | Mar. 31, 2018USD ($) | Mar. 31, 2018SEK (kr) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Investment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Schedule Of Equity Method Investments [Line Items] | |||||||||
Number of equity method investments | Investment | 1 | 1 | |||||||
Loss from equity method investment | $ (16) | $ (8) | $ (30) | $ (8) | |||||
Equity investments after consideration of foreign exchange movements | 134 | 134 | $ 98 | ||||||
Zenuity | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Cash contribution to joint venture | $ 71 | kr 600 | |||||||
Ownership percentage in joint venture | 50.00% | 50.00% | 50.00% | ||||||
Equity value of joint venture | $ 250 | ||||||||
Share in equity value of joint venture | $ 125 | ||||||||
Loss from equity method investment | (16) | $ (8) | (30) | $ (8) | |||||
Equity investments after consideration of foreign exchange movements | $ 134 | $ 134 | |||||||
Zenuity | Volvo Cars | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Ownership percentage in joint venture | 50.00% | ||||||||
Zenuity | Autoliv | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Cash contribution to joint venture | $ 111 | kr 1,000 |
Summary of Unaudited Income Sta
Summary of Unaudited Income Statement Information (Details) - Zenuity - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | $ 2 | $ 1 | $ 3 | $ 1 |
Operating loss | (32) | (16) | (60) | (16) |
Loss before income taxes | (32) | (16) | (60) | (16) |
Net loss | $ (32) | $ (16) | $ (60) | $ (16) |
Summary of Accrued Expenses (De
Summary of Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |||
Operating related accruals | $ 53 | $ 55 | |
Employee related accruals | 63 | 57 | |
Customer pricing accruals | 56 | 36 | |
Product related liabilities | [1] | 23 | 22 |
Other accruals | 21 | 25 | |
Total Accrued Expenses | $ 216 | $ 195 | |
[1] | At June 30, 2018, virtually all product related liabilities were indemnifiable losses subject to indemnification by Autoliv and an indemnification asset is included in Other current assets. |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) | Jun. 29, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 01, 2018 |
Pension Plans, Defined Benefit | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension expense | $ 2,000,000 | $ 2,000,000 | $ 3,000,000 | $ 3,000,000 | ||
Benefit plan obligations | 6,000,000 | 6,000,000 | ||||
Pension Plans, Defined Benefit | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit plan assets transferred Plans | 1,000,000 | |||||
Defined benefit plan net periodic benefit cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Pension Plans, Defined Benefit | Transferred Veoneer Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Benefit plan obligations | $ 6,000,000 | |||||
Pension Plans, Defined Benefit | Autoliv Sponsored Plans | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit plan expense and contributions prior to the plans amendment | 1,000,000 | 1,000,000 | 1,000,000 | |||
Pension Plans, Defined Benefit | Autoliv Sponsored Plans | Maximum | U.S. | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit plan expense | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Postretirement Benefits Other than Pension | Canadian Medical Plan | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit pension plan expense | $ 1,000,000 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Components of Net Periodic Benefit Cost (Details) - Pension Plans, Defined Benefit - Existing Veoneer Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 2 |
Interest cost | 1 | 1 | 1 | 1 |
Expected return on plan assets | (1) | (1) | (1) | |
Net periodic benefit cost | $ 2 | $ 1 | $ 2 | $ 2 |
Retirement Plans - Schedule o56
Retirement Plans - Schedule of Legal Name of the Plans (Details) - Pension Plans, Defined Benefit | 6 Months Ended |
Jun. 30, 2018 | |
Transferred Veoneer Plans | Germany | |
Defined Benefit Plan Disclosure [Line Items] | |
Name of Defined Benefit Pans | Direct Pension Promises Plan |
Transferred Veoneer Plans | India | |
Defined Benefit Plan Disclosure [Line Items] | |
Name of Defined Benefit Pans | Gratuity Plan |
Transferred Veoneer Plans | Japan | |
Defined Benefit Plan Disclosure [Line Items] | |
Name of Defined Benefit Pans | Retirement Allowances Plan, Defined Benefit Corporate Plan |
Transferred Veoneer Plans | South Korea | |
Defined Benefit Plan Disclosure [Line Items] | |
Name of Defined Benefit Pans | Severance Pay Plan (statutory plan) |
Autoliv Sponsored Plans | Sweden | |
Defined Benefit Plan Disclosure [Line Items] | |
Name of Defined Benefit Pans | ITP plan |
Autoliv Sponsored Plans | U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Name of Defined Benefit Pans | Autoliv ASP, Inc. Pension Plan, Autoliv ASP, Inc. Excess Pension Plan and Autoliv ASP, Inc. Supplemental Pension Plan |
Retirement Plans - Schedule o57
Retirement Plans - Schedule of Changes in Benefit Obligations and Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Obligation transferred in | $ 6 |
Benefit obligation at end of the period | 6 |
Funded status recognized in the balance sheet | $ (6) |
Retirement Plans - Schedule o58
Retirement Plans - Schedule of Components of Accumulated Other Comprehensive Income Before Tax (Details) - Pension Plans, Defined Benefit $ in Millions | Jun. 30, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss (gain) | $ (1) |
Total accumulated other comprehensive income recognized in the balance sheet | $ (1) |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Details) - USD ($) | Jun. 29, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
2018 Stock Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized for grant of common stock for future equity awards | 3,000,000 | ||||
Number of shares used for conversion of outstanding grants | 1,000,000 | ||||
Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 0 | ||||
RSUs and PSs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 | $ 2,000,000 | |
Spin-Off | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of stock options prior to Spin-Off transaction to be continued to be applicable to Autoliv common stock | 50.00% | ||||
Percentage of pre-spin value of stock options to be replaced with options to acquire shares of Veoneer common stock | 50.00% | ||||
Percentage of RSUs prior to Spin-Off to be continued to applicable to Autoliv common stock | 50.00% | ||||
Percentage of pre-spin value of RSUs to be replaced with RSUs with underlying Veoneer common stock | 50.00% | ||||
Estimated target performance level | 100.00% | ||||
Period prior to Spin-Off for average of Autoliv closing stock prices used for conversion of RSUs and SOs | 5 days | ||||
Period after Spin-Off for average of closing stock prices of Autoliv and Veoneer used for conversion of RSUs and SOs | 5 days | ||||
Spin-Off | 2018 Stock Incentive Plan | Autoliv | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of additional shares authorized to be used for conversion of outstanding Autoliv stock awards | 1,500,000 |
Contingent Liabilities - Schedu
Contingent Liabilities - Schedule of Change in Balance Sheet Position of Product Related Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Product Warranties Disclosures [Abstract] | ||||
Reserve at beginning of the period | $ 23 | $ 22 | $ 22 | $ 30 |
Change in reserve | 1 | 1 | 8 | |
Cash payments | (1) | (3) | (7) | (10) |
Reserve at end of the year | $ 23 | $ 20 | $ 23 | $ 20 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | |||
Estimated cost accrued | $ 6 | ||
Other current assets | $ 23 | ||
Guarantee obligations | 13 | $ 13 | |
Indemnification Asset | |||
Loss Contingencies [Line Items] | |||
Other current assets | $ 23 |
Loss Per Share - Computation of
Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Basic and diluted: | |||||
Net loss attributable to common shareholders | $ (63) | $ (28) | $ (95) | $ (48) | |
Denominator: | |||||
Basic: Weighted average number of shares outstanding | 87,130 | 87,130 | 87,130 | 87,130 | |
Diluted: Weighted-average number of shares outstanding, assuming dilution | [1] | 87,130 | 87,130 | 87,130 | 87,130 |
Basic loss per share | $ (0.72) | $ (0.32) | $ (1.09) | $ (0.55) | |
Diluted loss per share | $ (0.72) | $ (0.32) | $ (1.09) | $ (0.55) | |
[1] | Shares in the diluted EPS calculation represent basic shares due to the net loss. The shares excluded from the calculation were 598,568 for the three and six months ended June 30, 2018 and 2017 because they are anti-dilutive. |
Loss Per Share - Computation 63
Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from calculation | 598,568 | 598,568 | 598,568 | 598,568 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of (Loss)/Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Segment operating (loss)/income | $ (48) | $ (12) | $ (64) | $ (22) |
Interest and other non-operating items, net | 1 | 1 | 1 | |
Loss from equity method investment | (16) | (8) | (30) | (8) |
Loss before income taxes | (63) | (19) | (93) | (30) |
Operating Segments | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Segment operating (loss)/income | (35) | (8) | (44) | (12) |
Electronics | Operating Segments | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Segment operating (loss)/income | (31) | (7) | (32) | (9) |
Brake Systems | Operating Segments | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Segment operating (loss)/income | (4) | (1) | (12) | (3) |
Corporate and other | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Segment operating (loss)/income | $ (13) | $ (4) | $ (20) | $ (10) |
Relationship with Former Pare66
Relationship with Former Parent and Related Entities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||||
Cash and cash equivalents | $ 980 | $ 0 | $ 980 | $ 0 | $ 1,000 | $ 0 | $ 0 |
Veoneer Nissin Brakes Systems | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage by parent | 51.00% | 51.00% | |||||
Capital lease arrangements | $ 13 | $ 13 | $ 11 | ||||
Nissin Kogyo | |||||||
Related Party Transaction [Line Items] | |||||||
Minority ownership Percentage | 49.00% | 49.00% | |||||
Autoliv | |||||||
Related Party Transaction [Line Items] | |||||||
Revenue from related parties | $ 21 | $ 18 | $ 43 | $ 35 |
Relationship with Former Pare67
Relationship with Former Parent and Related Entities - Summary of Amount Due to and from Related Parties (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Related party receivable | $ 71 | |
Related party notes receivable | $ 76 | |
Related party payables | 47 | 5 |
Related party long-term debt | $ 13 | $ 62 |