Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38471 | |
Entity Registrant Name | Veoneer, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-3720890 | |
Entity Address, Address Line One | Klarabergsviadukten 70, Section C6 | |
Entity Address, Address Line Two | Box 13089 | |
Entity Address, City or Town | Stockholm | |
Entity Address, Country | SE | |
Entity Address, Postal Zip Code | SE- 103 02 | |
City Area Code | 46 | |
Local Phone Number | 8 527 762 00 | |
Title of 12(b) Security | Common stock, $1.00 par value | |
Trading Symbol | VNE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 112,018,001 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001733186 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 391 | $ 371 | $ 1,208 | $ 918 |
Cost of sales | (326) | (317) | (1,025) | (808) |
Gross profit | 65 | 54 | 183 | 110 |
Selling, general and administrative expenses | (38) | (43) | (118) | (124) |
Research, development and engineering expenses, net | (102) | (124) | (326) | (299) |
Amortization of intangibles | (2) | (1) | (6) | (4) |
Other (expense)/ income, net | (12) | 11 | (18) | 27 |
Operating loss | (89) | (103) | (285) | (290) |
Loss on divestiture and assets impairment charge, net | 0 | (24) | 0 | (91) |
Gain (loss) from equity method investment | 3 | (1) | 12 | (39) |
Interest income | 1 | 1 | 2 | 8 |
Interest expense | (5) | (5) | (16) | (15) |
Other non-operating items, net | (1) | 0 | 1 | 0 |
Loss before income taxes | (91) | (132) | (286) | (427) |
Income tax expense | (3) | 0 | (12) | (26) |
Net loss | (94) | (132) | (298) | (453) |
Less: Net income attributable to non-controlling interest | 0 | 0 | 0 | 1 |
Net loss attributable to controlling interest | $ (94) | $ (132) | $ (298) | $ (454) |
Net loss per share - basic (in dollars per share) | $ (0.84) | $ (1.18) | $ (2.66) | $ (4.07) |
Net loss per share - diluted (in dollars per share) | $ (0.84) | $ (1.18) | $ (2.66) | $ (4.07) |
Weighted average number of shares outstanding (in millions) | 111,960 | 111,590 | 111,830 | 111,550 |
Weighted average number of shares outstanding, assuming dilution (in millions) | 111,960 | 111,590 | 111,830 | 111,550 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (94) | $ (132) | $ (298) | $ (453) |
Other comprehensive loss, before tax: | ||||
Change in cumulative translation adjustment | (5) | 15 | (15) | 15 |
Other comprehensive (loss)/ income, before tax | (5) | 15 | (15) | 15 |
Other comprehensive (loss)/ income, net of tax | (5) | 15 | (15) | 15 |
Comprehensive loss | (99) | (117) | (313) | (438) |
Less: Comprehensive income attributable to non-controlling interest | 0 | 0 | 0 | 2 |
Comprehensive loss attributable to controlling interest | $ (99) | $ (117) | $ (313) | $ (440) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 419 | $ 758 |
Restricted cash | 1 | 0 |
Receivables, net | 271 | 292 |
Inventories, net | 187 | 134 |
Related party receivables | 5 | 9 |
Prepaid expenses and other contract assets | 44 | 36 |
Other current assets | 16 | 15 |
Total current assets | 943 | 1,244 |
Property, plant and equipment, net | 390 | 431 |
Operating lease right-of-use assets | 83 | 89 |
Equity method investment | 22 | 153 |
Goodwill | 317 | 317 |
Intangible assets, net | 17 | 21 |
Deferred tax assets | 5 | 6 |
Other non-current assets | 19 | 27 |
Total assets | 1,796 | 2,288 |
Liabilities and equity | ||
Accounts payable | 257 | 257 |
Related party payables | 1 | 2 |
Accrued expenses | 201 | 232 |
Income tax payable | 5 | 25 |
Related party short-term debt | 0 | 16 |
Other current liabilities | 58 | 55 |
Total current liabilities | 522 | 587 |
4.00% Convertible Senior Notes due 2024 | 177 | 170 |
Related party long-term debt | 0 | 115 |
Pension liability | 20 | 20 |
Deferred tax liabilities | 13 | 12 |
Operating lease non-current liabilities | 66 | 71 |
Finance lease non-current liabilities | 45 | 46 |
Other non-current liabilities | 19 | 28 |
Total non-current liabilities | $ 340 | $ 462 |
Shares outstanding (in shares) | 112,000 | 111,000 |
Shares issued (in shares) | 112,000 | 111,000 |
Equity | ||
Common stock (par value $1.00, 325 million shares authorized, 112 million shares and 111 million shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively) | $ 112 | $ 111 |
Additional paid-in capital | 2,356 | 2,349 |
Accumulated deficit | (1,524) | (1,226) |
Accumulated other comprehensive (loss)/ income | (10) | 5 |
Total equity | 934 | 1,239 |
Total liabilities and equity | $ 1,796 | $ 2,288 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Par value (in dollars per share) | $ 1 | $ 1 |
Shares authorized (in shares) | 325,000,000 | 325,000,000 |
Shares issued (in shares) | 112,000,000 | 111,000,000 |
Shares outstanding (in shares) | 112,000,000 | 111,000,000 |
4.00% Convertible Senior Notes due 2024 (Carrying value) | Convertible Senior Notes | ||
Stated interest rate | 4.00% | 4.00% |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive (loss)/ income | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2019 | $ 1,818 | $ 111 | $ 2,343 | $ (681) | $ (44) | $ 89 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (453) | (454) | 1 | |||
Foreign currency translation | 15 | 14 | 1 | |||
Stock based compensation expense | 6 | 6 | ||||
Business divestitures | (88) | 3 | (91) | |||
Balance at end of period at Sep. 30, 2020 | 1,298 | 111 | 2,349 | (1,135) | (27) | $ 0 |
Balance at beginning of period at Dec. 31, 2020 | 1,239 | 111 | 2,349 | (1,226) | 5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (298) | (298) | ||||
Foreign currency translation | (15) | (15) | ||||
Stock based compensation expense | 7 | 7 | ||||
Issuance of common stock | 1 | 1 | ||||
Balance at end of period at Sep. 30, 2021 | $ 934 | $ 112 | $ 2,356 | $ (1,524) | $ (10) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net loss | $ (298) | $ (453) |
Depreciation and amortization | 86 | 73 |
Gain on divestitures | 0 | (77) |
Assets impairment charge | 0 | 168 |
Undistributed (gain) loss from equity method investments | (12) | 39 |
Stock-based compensation | 7 | 6 |
Deferred income taxes | 1 | (3) |
Other, net | 7 | 3 |
Change in operating assets and liabilities: | ||
Receivables, gross | 15 | 36 |
Accrued expenses | (19) | 45 |
Related party receivables and payables, net | 3 | 4 |
Accounts payable | 8 | (8) |
Prepaid expenses and other contract assets | (8) | 14 |
Inventories, gross | (73) | 15 |
Income taxes | (17) | 20 |
Other current assets and liabilities, net | 1 | 3 |
Net cash used in operating activities | (299) | (115) |
Investing activities | ||
Proceeds from divestitures | 0 | 198 |
Capital expenditures | (46) | (70) |
Equity method investment | 11 | 9 |
Proceeds from sale of property, plant and equipment | 0 | 10 |
Acquisition of intangible assets | 0 | (10) |
Acquisition of business net of cash acquired | 0 | (33) |
Net cash (used in)/ provided by investing activities | (35) | 104 |
Financing activities | ||
Dividend paid to non-controlling interest | 0 | (5) |
Payments for long-term debt | (1) | (1) |
Payments for short-term debt | (2) | (2) |
Proceeds from exercise of stock options | 1 | 0 |
Net cash used in financing activities | (2) | (8) |
Effect of exchange rate changes on cash and cash equivalents | (2) | 6 |
Decrease in cash and cash equivalents and restricted cash | (338) | (13) |
Cash and cash equivalents and restricted cash at beginning of period | 758 | 859 |
Cash and cash equivalents at end of period | $ 420 | $ 846 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements of Veoneer, Inc. (the "Company" or "Veoneer") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The accompanying unaudited condensed consolidated financial statements for Veoneer do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to Veoneer’s Audited Consolidated Financial Statements for the year ended December 31, 2020 and corresponding notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 19, 2021. Certain amounts in the unaudited condensed consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. The Company has one operating segment, the Electronics segment. The Company previously had two operating segments, Electronics and Brake Systems. Electronics includes all electronics resources and expertise, Restraint Control Systems and Active Safety products, and Brake Systems provided brake control and actuation systems. The Asian business of the Brake Systems segment was sold on February 3, 2020 and the majority of the Brake Systems business in North America was sold on August 10, 2020. The remaining Brake Systems business is no longer a reportable segment due to immateriality. Divestiture of Veoneer Nissin Brake System ("VNBS") On October 30, 2019, Veoneer signed definitive agreements to sell its 51% ownership in Veoneer Nissin Brake Japan ("VNBJ") and Veoneer Nissin Brake China ("VNBZ"), entities that comprise VNBS to its joint venture partner Nissin-Kogyo Co., Ltd. (“Nissin Kogyo”) and Honda Motor Co., Ltd. The aggregate purchase price was $176 million. The divestiture of VNBJ and VNBZ was structured as two separate transactions each of which was completed on February 3, 2020, and the VNBS joint venture was terminated. See Note 5 "Divestiture and held for sale" for additional information. Divestiture of Veoneer Brake Systems ("VBS") On August 10, 2020, Veoneer signed a definitive agreement to sell the majority of the Brake Systems business in North America to ZF Friedrichshafen AG ("ZF"). The aggregate purchase price was $1. In connection with the transaction, the Company received approximately $22 million from ZF for VBS operational cost reimbursements. See Note 5 "Divestiture and held for sale" for additional information. Pending Merger Agreement On October 4, 2021 Veoneer entered into a definitive agreement with SSW HoldCo LP ("SSW"), a Delaware limited partnership, SSW Merger Sub Corp, a Delaware corporation and a direct, wholly owned subsidiary of SSW ("Merger Sub"), and QUALCOMM Incorporated ("Qualcomm") providing for the acquisition of Veoneer, Inc. for $37.00 per share in an all-cash transaction, representing a total equity value for Veoneer of $4.5 billion. On October 5, 2021, Veoneer terminated the Agreement and Plan of Merger, dated July 23, 2021, by and among Veoneer, Magna International Inc., an Ontario corporation (“Magna”), and 2486345 Delaware Corporation, a Delaware corporation, providing for the acquisition of Veoneer by Magna. At closing, SSW will acquire Veoneer by merger, shortly after which it is contemplated that SSW will sell Veoneer's dedicated software unit, referred to as the Arriver business.to Qualcomm and retain Veoneer’s Tier-1 supplier businesses. SSW Partners will lead the process of finding strong, long-term strategic partners. The transaction has been approved by the board of directors of Veoneer and is subject to regulatory approvals including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States, certain European foreign direct investment approvals, approval by Veoneer stockholders and other customary conditions. The transaction is expected to close during 2022. Due to the termination of Veoneer's acquisition agreement with Magna, Veoneer was obligated to pay Magna a termination fee of $110 million. In conjunction with the execution of the definitive agreement with SSW and Qualcomm providing for the acquisition of Veoneer, Qualcomm paid the termination fee directly to Magna on behalf of Veoneer on October 4, 2021. The Company recorded approximately $11 million of merger related expenses in Other (expense)/ income, net in the unaudited Condensed Consolidated Statements of Operations, for the three and nine months ended September 30, 2021. During the third quarter, the Company implemented an employee retention bonus program to retain certain employees. The current amount of the program is approximately $16 million which will be accrued ratably over the period the bonuses are earned. During the quarter approximately $1 million was accrued and included in the merger related expenses in Other (expense)/ income, net in the unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A summary of significant accounting policies is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 19, 2021. Restricted Cash Restricted cash represents amounts designated for uses other than current operations. As of September 30, 2021 the Company has $1 million of Restricted cash related to cash collateral for other corporate purposes. Concentration of Credit Risk A substantial majority of the Company’s trade receivables are derived from sales to Original Equipment Manufacturers ("OEMs"). For the three and nine months ended September 30, 2021, the Company’s four largest customers accounted for 41% and 44% of net sales, respectively, and for the three and nine months ended September 30, 2020, the Company’s four largest customers accounted for 55% and 59% of net sales, respectively. Additionally, as of September 30, 2021 and December 31, 2020, these four largest customers accounted for 31% and 40% of the Company’s accounts receivables, respectively. The Company believes that the receivable balances from these largest customers do not represent a significant credit risk based on past collection experience. The Company has adopted credit policies and standards intended to accommodate industry growth and inherent risk. The Company believes that credit risks are moderated by the financial stability of the Company’s major customers. New Accounting Standards Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s unaudited condensed consolidated financial statements. Adoption of New Accounting Standards In December 2019, the FASB issued ASU 2019-12, " Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, " which simplifies the accounting for income taxes. ASU 2019-12 is effective for public business entities for annual periods beginning after December 15, 2020, and early adoption is permitted. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company adopted ASU 2019-12 in the first quarter of 2021. The adoption of ASU 2019-12 did not have a material impact on the Company's unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. ASU 2018-14 removes the requirements to disclose: amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year; the amount and timing of plan assets expected to be returned to the employer; and the effects of a one-percentage point change in assumed health care cost trend rates. ASU 2018-14 requires disclosure of an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company adopted ASU 2018-14 in the first quarter of 2021. The adoption of ASU 2018-14 did not have a material impact on the Company's unaudited condensed consolidated financial statements. Accounting Standards Issued But Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting ." The guidance provides optional expedients and exceptions related to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. The guidance was effective upon issuance and generally can be applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact on its disclosures. In August 2020, the FASB issued ASU 2020-06, " Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) ." The guidance provides simplifications of the accounting for convertible instruments and reduces the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current U.S. GAAP. In addition to further improve the decision usefulness and relevance of the information being provided to users of financial statements, information transparency has been increased by amending certain disclosure requirements. The guidance is effective for public business entities for fiscal years beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. In addition, an entity should adopt the guidance as of the beginning of its annual fiscal year. The amendments in this update are required to be applied through either a modified retrospective method of transition or a fully retrospective method of transition. In applying the modified retrospective method, entities should apply the guidance to transactions outstanding as of the beginning of the fiscal year in which the amendments are adopted. The Company is currently evaluating this guidance to determine the impact on its disclosures. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue In the following tables, revenue is disaggregated by primary region and products. Net Sales by Region Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 111 $ — $ 111 $ 85 $ — $ 85 Americas 116 11 127 123 13 136 Europe 153 — 153 150 — 150 Total net sales $ 380 $ 11 $ 391 $ 358 $ 13 $ 371 Net Sales by Region Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 310 $ — $ 310 $ 202 $ 24 $ 226 Americas 362 35 $ 397 283 33 $ 316 Europe 501 — 501 376 — 376 Total net sales $ 1,173 $ 35 $ 1,208 $ 861 $ 57 $ 918 Net Sales by Products Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 153 $ — $ 153 $ 188 $ — $ 188 Active Safety products 215 — 215 170 — 170 Brake Systems — 11 11 — 13 13 Other 12 — 12 — — — Total net sales $ 380 $ 11 $ 391 $ 358 $ 13 $ 371 Net Sales by Products Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 517 $ — $ 517 $ 450 $ — $ 450 Active Safety products 618 — 618 411 — 411 Brake Systems — 35 35 — 57 57 Other 38 — 38 — — — Total net sales $ 1,173 $ 35 $ 1,208 $ 861 $ 57 $ 918 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | 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. Zenuity, Inc and Zenuity GmbH Zenuity AB, a 50% ownership joint venture with Volvo Cars Corporation (VCC), was separated pursuant to definitive agreements between the Company and VCC, in order for each company to more effectively drive their respective strategies. As part of the transaction the Company paid approximately $37 million to Zenuity for 200 software engineers and two business units located in Germany and the US. The Company applied the acquisition method of accounting to the Zenuity, Inc and Zenuity GmbH entities, whereby the excess of the fair value of the business over the fair value of identifiable net assets was allocated to goodwill. The goodwill reflects the workforce. The recognized goodwill of $25 million recorded as part of this acquisition is not deductible for tax purposes. The opening balance sheet is based on final assessment of the fair values of certain acquired assets, principally intangibles, and certain assumed liabilities. The Company used discounted cash flow ("DCF") analyses, which represent Level 3 fair value measurements, to assess the purchase price allocation. Total Zenuity, Inc and Zenuity GmbH acquisition related costs were approximately $1 million for the period ended December 31, 2020. The following table summarizes the final fair values of identifiable acquired assets and assumed liabilities: Assets As of July 1, 2020 Cash and cash equivalents $ 4 Receivable, net 12 Property, plant and equipment, net 3 Operating lease right-of-use assets 8 Goodwill 25 Total assets $ 52 Tax payable 2 Accrued liabilities 3 Operating lease non-current liabilities 10 Total liabilities $ 15 Net assets acquired $ 37 |
Divestiture and held for sale
Divestiture and held for sale | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture and held for sale | Divestiture and held for sale VBS In 2019, the Company started exploring strategic options for its non-core business in the Brake Systems segment. In the first quarter of 2020, management committed and approved a plan to sell VBS. The business and its associated assets and liabilities met the criteria for presentation as held for sale as of June 30, 2020 and were required to be adjusted to the lower of fair value less cost to sell or carrying value. This resulted in an impairment charge of approximately $144 million which was recorded within Loss on divestiture and assets impairment charges, net on the unaudited Condensed Consolidated Statements of Operations during the period ended June 30, 2020. The impairment was measured using third party sales pricing to determine fair values of the assets. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." The assets and liabilities associated with the transaction were separately classified as held for sale during 2020 and depreciation of these long-lived assets ceased during first half of 2020. The divestiture did not meet the criteria for presentation as a discontinued operation. On August 10, 2020 Veoneer signed a definitive agreement to sell the majority of the Brake Systems business in North America to ZF. The aggregate purchase price was $1. In connection with the transaction, the Company received approximately $22 million from ZF for VBS operational cost reimbursement. The transaction closed during the third quarter of 2020 and no additional gain or loss was recognized. VNBS In the fourth quarter of 2019, management approved a plan to sell VNBS. The business and its associated assets and liabilities met the criteria for presentation as held for sale as of December 31, 2019, and depreciation of long-lived assets ceased. The divestiture did not meet the criteria for presentation as a discontinued operation. On October 30, 2019, the Company entered into definitive agreements with Nissin-Kogyo Co., Ltd. and Honda Motor Co., Ltd to divest VNBS. On February 3, 2020, the Company completed the sale of VNBS. The aggregate purchase price of the transaction was $176 million, subject to certain adjustments. The net cash proceeds after adjusting for closing costs was $175 million. The Company recognized a gain on the divestiture of $77 million, net of closing costs. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s short and long-term debt consists of the following: As of (Dollars in millions) September 30, 2021 December 31, 2020 Short-Term Debt: Short-term borrowings $ 4 $ 4 Long-Term Debt: 4.00% Convertible Senior Notes due 2024 (Carrying value) 177 170 Other long-term borrowings 8 7 Total Debt $ 189 $ 181 Short-Term Debt: S hort-term debt is included in Other current liabilities in the Condensed Consolidated Balance Sheets. Long-Term Debt: Other long-term borrowings Other long-term borrowings are included in Other non-current liabilities in the Condensed Consolidated Balance Sheets . 4.00% Convertible Senior Notes On May 28, 2019, the Company issued, in a registered public offering in the U.S., Convertible Senior Notes (the “Notes”) with an aggregate principal amount of $207 million. The Notes bear interest at a rate of 4.00% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2019. The Notes will mature on June 1, 2024, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The net proceeds from the offering of the Notes were approximately $200 million, after deducting issuance costs of $7 million. The Company accounted for these issuance costs as a direct deduction from the carrying amount of the Notes. These costs are being amortized into interest expense for 5 years or through June 2024. The conversion rate is 44.8179 shares of common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $22.3125 per share of common stock). The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event or notice of redemption, as the case may be. In no event will the conversion rate per $1,000 principal amount of notes as a result of this adjustment exceed 57.1428 shares of common stock, as stipulated in the indenture. The Company may not redeem the Notes prior to June 1, 2022. On or after this date, the Company may redeem for shares all or any portion of the Notes, at our option, if the last reported sale price of the Company's common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. If the Company undergoes a fundamental change (as defined in the indenture), holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Notes are the Company's general unsecured obligations and rank senior in right of payment to all of the Company's indebtedness that is expressly subordinated in right of payment to the Notes, equal in right of payment with all of the Company's liabilities that are not so subordinated, effectively junior to any of the Company's secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. Holders may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding March 1, 2024 only under the following circumstances: (1) if the last reported sale price of the Company's common stock for at least 20 trading days, whether or not consecutive, during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five ten On or after March 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at the Company's election, as stipulated in the indenture. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, which does not meet the criteria for separate accounting as a derivative as it is indexed to the Company's own stock, was determined by deducting the fair value of the liability component from the par value of the Notes. The difference between the principal amount of the Notes and the liability component represents the debt discount, which is recorded as a direct deduction from the related debt liability in the unaudited Condensed Consolidated Balance Sheets and amortized to interest expense using the effective interest method over the term of the Notes. The effective interest rate on the Notes is 10%. The equity component of the Notes of approximately $46 million is included in additional paid-in capital in the unaudited Condensed Consolidated Balance Sheet and is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocated transaction costs related to the Notes using the same proportions as the proceeds from the Notes. Transaction costs attributable to the liability component were recorded as a direct deduction from the related debt liability in the unaudited Condensed Consolidated Balance Sheet and amortized to interest expense over the term of the Notes, and transaction costs attributable to the equity component were netted with the equity component in shareholders’ equity. The following table presents the outstanding principal amount and carrying value of the Notes: 4.00% Convertible Senior Notes due 2024 As of (Dollars in millions) September 30, 2021 December 31, 2020 Principal amount (face value) $ 207 $ 207 Unamortized issuance cost (3) (4) Unamortized debt discount (27) (33) Net Carrying value $ 177 $ 170 The Company recognized total interest expense related to the Notes of $5 million and $4 million for the three months ended September 30, 2021 and 2020, respectively, and $14 million and $13 million for the nine months ended September 30, 2021 and 2020, respectively, in the unaudited Condensed Consolidated Statements of Operations. |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities The Company is undertaking various restructuring activities related to its Market Adjustment Initiatives program to achieve its strategic and financial targets and plans. These restructuring activities include, but are not limited to, consolidation of available capacity and resources along with production, engineering and administrative cost structure realignments. The Company expects to finance restructuring activities through its cash on hand and cash generated from operations. Restructuring costs are recorded as elements of a plan as they become finalized and approved where the timing of the activities and the amount of related costs are not expected to change materially. Such costs are estimated based on information available at the time such charges are recorded. In general, management anticipates that restructuring activities will be completed within a relatively short time frame such that changes to the plan are expected to be immaterial. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. During the first quarter of 2021, the Company announced certain restructuring activities impacting certain engineering and administrative functions to further align the Company's resources with its core product technologies and customers. During the three and nine month periods ended September 30, 2021, the Company recorded restructuring expenses of less than $1 million and $5 million, respectively. The Company recorded zero in restructuring expenses for the three and nine month periods ended September 30, 2020. The payback on such restructuring expenses is expected to be less than one year. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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. Assets which are valued at net asset value per share ("NAV"), or its equivalent, as a practical expedient are reported outside the fair value hierarchy but are included in the total assets for reporting and reconciliation purposes. 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 September 30, 2021 were foreign exchange swaps. All swaps principally match the terms and maturity of the underlying obligation 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. 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. The notional value of the derivatives not designated as hedging instruments was $314 million as of September 30, 2021 and $179 million as of December 31, 2020. As of September 30, 2021, derivatives not designated as hedging instruments was an asset of $6 million, and as of December 31, 2020, the derivatives not designated as hedging instruments was a liability of $1 million. There were no derivatives designated as hedging instruments. Gains and losses on derivative financial instruments reported in Other non-operating items, net in the unaudited Condensed Consolidated Statements of Operations, for the three months ended September 30, 2021 and 2020, were a gain of $3 million and a gain of $2 million, respectively, and for the nine months ended September 30, 2021 and 2020, were a gain of $7 million and a gain of $4 million, respectively. Items Measured at Fair Value on a Non-Recurring Basis |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense for the three and nine month periods ended September 30, 2021 was $3 million and $12 million, respectively. The income tax expense for three and nine month periods ended September 30, 2020 was less than $1 million and $26 million, respectively. There were no discrete items in the three and nine month periods ended September 30, 2021. Discrete items, net were a benefit of $2 million and expense of $17 million for the three and nine month periods ended September 30, 2020, respectively. The discrete item in the nine month period ended September 30, 2020 was primarily related to the tax impact of the divestiture of VNBS. Veoneer's effective tax rate differs from an expected statutory rate primarily due to the discrete item and losses in certain jurisdictions that are not benefited. 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 operations in the United States, Sweden, France, Japan and China. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost (according to first-in-first-out basis, "FIFO") and net realizable value. The components of inventories were as follows: As of (Dollars in millions) September 30, 2021 December 31, 2020 Raw materials $ 158 $ 105 Work in progress 23 14 Finished products 52 51 Inventories 233 170 Inventory valuation reserve (46) (36) Total inventories, net of reserve $ 187 $ 134 |
Equity Method Investment
Equity Method Investment | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment As of September 30, 2021, the Company has two equity method investments. Zenuity On April 2, 2020, the Company entered into a non-binding agreement with VCC to separate Zenuity, a 50% ownership joint venture with VCC in order for each company to drive their respective strategies more effectively. On July 1, 2020, the Company finalized the split of Zenuity. As part of the transaction the Company paid approximately $37 million to Zenuity for 200 software engineers and two business units located in Germany and the US. Veoneer acquired the right to use Zenuity's intellectual property for a total consideration of SEK 1,067 million (approximately $114 million) which was settled against dividend receivable of SEK 1,067 million (approximately $114 million). The remaining value of that equity investment is zero. As the transaction was between the investor and investee, the Company did not recognize any gain from the transaction. Following completion of the transaction, Veoneer and VCC continue to each own 50% of Zenuity AB. The joint venture was not dissolved as part of the transaction but continues as a holding company that owns the Zenuity's intellectual property. During the first quarter of 2021, the Company received a dividend of SEK 108 million (approximately $13 million) in cash (representing 50%, with the remainder received by VCC) from Zenuity. In addition, the Company received a dividend of SEK 1,067 million (approximately $127 million) which was settled net against Related party short-term and long-term debt related to Zenuity's intellectual property that Veoneer acquired the right to use as part of the separation of Zenuity. During the first quarter of 2020, Veoneer contributed SEK 150 million (approximately $16 million) in cash (representing 50% of the total contribution, with the remainder made by VCC) into Zenuity to support its future operating cash flow needs. AutotechFund I, L.P. The Company has an investment interest with Autotech Fund I, L.P of less than 20% which is accounted for under the equity method as the Company’s beneficial ownership interest in Autotech is similar to partnership interest. On June 30, 2017, Veoneer committed to make a $15 million investment in Autotech pursuant to a limited partnership agreement, and as a limited partner, will periodically make capital contributions toward this total commitment amount. As of September 30, 2021 and December 31, 2020, Veoneer has contributed a total of $14 million and $12 million, respectively, to the fund. As of September 30, 2021 the Company has received a distribution of $3 million from the fund. The carrying amounts reflected in the Condensed Consolidated Balance Sheet as of September 30, 2021 in equity method for the AutoTech approximates its fair value as of June 30, 2021, as this is the most recent information available to the Company at this time. The profit and loss attributed to the investments is shown in the line item Gain (loss) from equity method investment in the unaudited Condensed Consolidated Statements of Operations. Veoneer’s share of Zenuity and AutoTech for the three and nine month periods ended September 30, 2021 was a gain of $3 million and of $12 million, respectively. Veoneer’s share of Zenuity and AutoTech for the three and nine month periods ended September 30, 2020 was a loss of $1 million and $39 million, respectively. As of September 30, 2021 and December 31, 2020, the Company’s equity investment in Zenuity and Autotech amounted to $22 million and $153 million, respectively, after consideration of foreign exchange rate movements. The value of the Zenuity investment as of September 30, 2021 is zero. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expense As of (Dollars in millions) September 30, 2021 December 31, 2020 Operating related accruals $ 57 $ 70 Employee related accruals 76 102 Customer pricing accruals 15 20 Product related liabilities 1 18 19 Other accruals 35 21 Total Accrued Expenses $ 201 $ 232 1 As of September 30, 2021 and December 31, 2020, $8 million and $9 million, respectively, of product related liabilities were indemnifiable losses subject to indemnification by Autoliv and an indemnification asset is included in Other current assets. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Defined Benefit Pension Plans The Company’s net periodic benefit costs for plans for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions) 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 1 1 2 2 Expected return on plan assets (1) (1) (2) (2) Net periodic benefit cost $ 1 $ 1 $ 3 $ 3 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 in Other non-operating items, net in the unaudited Condensed Consolidated Statements of Operations. |
Stock Incentive Plan
Stock Incentive Plan | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plan | Stock Incentive Plan The Veoneer, Inc. 2018 and 2021 Stock Incentive Plan was established and effective on June 29, 2018 and May 10, 2021, respectively, to govern the Company’s stock-based awards that will be granted in the future. The Veoneer, Inc. 2018 and 2021 Stock Incentive Plan authorizes the grant of 3 million and 13 million shares, respectively, of Veoneer common stock for future equity awards to Veoneer employees and non-employee directors and 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 of the Company by Autoliv, Inc. on June 29, 2018 (the “Spin-Off”). Approximately 1 million shares were used for the conversion of the outstanding grants. As of May 10, 2021, all future awards will be granted under the 2021 Stock Incentive Awards and no further awards may be granted under the 2018 Stock Incentive Plan. During the nine months ended September 30, 2021 under the Company’s 2018 long-term incentive (LTI) program, certain employees received restricted stock units (RSUs) without dividend equivalent rights and performance shares (PSs) without dividend equivalent rights. The allocation between RSUs and PSs was 203,439 RSUs and 182,272 PSs at 100% target. During the nine months ended September 30, 2021 under the Company’s 2021 LTI program, certain non-employee directors received restricted stock units (RSUs) with dividend equivalent rights of 36,841. The majority of the RSUs granted will vest on the third anniversary of the grant date, subject to the grantee’s continued employment with the Company on the vesting date and acceleration of vesting in certain circumstances. The fair value of RSUs and PSs granted in 2021 were calculated by using the closing stock price on the grant dates. The grant date fair value for the RSUs and PSs, granted in 2021 was $14 million. PSs granted in 2021 may be earned during the first quarter of 2024, upon the Compensation Committee’s certification of achievement of the applicable performance goals. The grantee may earn 0%-200% of the target number of PSs based on the Company’s achievement of specified targets related to the Company’s gross margin for the applicable performance period. Each PS represents a promise to transfer a share of the Company’s common stock to the employee following completion of the performance period, provided that the performance goals mentioned above are met and provided, further, that the grantee remains employed through the performance period, subject to certain limited exceptions. Veoneer recognized total stock (RSUs, PS and Stock Options) compensation cost of $2 million and $7 million for the three and nine month periods ended September 30, 2021, respectively. During the three and nine month periods ended September 30, 2020, the Company recorded $1 million and $6 million, respectively. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Loss Contingency [Abstract] | |
Contingent Liabilities | 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 condensed 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 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. Product Related Liabilities The Company records liabilities for product related risks when probable claims are identified and when it is possible to reasonably estimate costs. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products, and volume of the products sold. The provisions are recorded on an accrual basis. The table below summarizes the change in product related liabilities in the unaudited Condensed Consolidated Balance Sheet. Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions) 2021 2020 2021 2020 Reserve at beginning of the period $ 18 $ 18 $ 19 $ 15 Change in reserve 2 2 4 8 Cash payments (2) (1) (5) (4) Reserve at end of the period $ 18 $ 19 $ 18 $ 19 |
Loss per share
Loss per share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Loss per share | Loss per share Basic loss per share is computed by dividing net loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed by dividing net loss for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted loss per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted loss per share for the three and nine month periods ended September 30, 2021 and 2020. Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions, except per share amounts) 2021 2020 2021 2020 Numerator: Basic and diluted: Net loss attributable to Veoneer $ (94) $ (132) $ (298) $ (454) Denominator: Basic: Weighted average number of shares outstanding (in millions) 111.96 111.59 111.83 111.55 Diluted: Weighted-average number of shares outstanding, assuming dilution (in millions) 1 111.96 111.59 111.83 111.55 Basic loss per share $ (0.84) $ (1.18) $ (2.66) $ (4.07) Diluted loss per share $ (0.84) $ (1.18) $ (2.66) $ (4.07) 1 Shares in the diluted loss per share calculation represent basic shares due to the net loss. In periods when the Company has a net loss, equity incentive awards are excluded from the Company's calculation of earnings per share as their inclusion would have an anti-dilutive effect. The Company excluded equity incentive awards of 665,130 and 758,551 shares for the three and nine month periods ended September 30, 2021, respectively, and 963,171 and 741,120 for the three and nine month periods ended September 30, 2020, respectively, from the diluted loss per share calculations. The Company would elect to settle the conversion of the Notes in shares of the Company's common stock. For the Notes, the number of shares of the Company's common stock issuable at the conversion price of $22.3125 per share would be 9,277,305 shares if the Company elected to settle the conversion wholly in shares. See Note 6 "Debt" for more information. Due to anti-dilutive effects, the Company excluded potential convertible shares due under the Notes of 9,277,305 for the three and nine month periods ended September 30, 2021 and 2020 from the diluted loss per share calculations. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Financial results for the Company's reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's Chief Operating Decision Maker (CODM) in allocating resources and in assessing performance. The Company has one reportable segment, which includes the Company’s electronics resources and expertise in passive safety electronics and active safety. The Company previously had two operating segments - Electronics and Brake Systems. The Asian business of the Brake Systems segment was sold on February 3, 2020 and the majority of the Brake Systems business in North America was sold on August 10, 2020. The remaining Brake Systems business is no longer a reportable segment due to immateriality. The accounting policies for the reportable segment are the same as those described in Note 2 "Summary of Significant Accounting Policies" included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 19, 2021. Loss Before Income Taxes Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Electronics $ (69) $ (80) $ (230) $ (202) Brake Systems — (3) — (37) Segment operating loss (69) (83) (230) (239) Corporate and other (20) (20) (55) (51) Loss on divestiture and assets impairment charge, net — (24) — (91) Interest and other non-operating items, net (5) (4) (13) (7) Gain (loss) from equity method investment 3 (1) 12 (39) Loss before income taxes $ (91) $ (132) $ (286) $ (427) |
Relationship with Former Parent
Relationship with Former Parent and Related Entities | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Relationship with Former Parent and Related Entities | Relationship with Former Parent and Related Entities Transactions with Related Parties Veoneer and Autoliv entered into transition service agreements in connection with the Spin-Off under which certain services are provided by Autoliv to Veoneer and certain services are provided by Veoneer to Autoliv. For the three and nine month periods ended September 30, 2021, the Company recognized zero of expense under the agreements and less than $1 million for the three and nine month periods ended September 30, 2020. For the three and nine month periods ended September 30, 2021, the Company recognized zero of income under the TSA and less than $1 million of income for the three and nine month periods ended September 30, 2020. Throughout the periods covered by the unaudited condensed consolidated financial statements, Veoneer sold finished goods to Autoliv and related party sales amounted to $16 million and $57 million for the three and nine month periods ended September 30, 2021, respectively, and $18 million and $48 million for the three and nine month periods ended September 30, 2020, respectively. Related Party Balances Amounts due to and due from related parties are summarized in the below table: Related Party As of (Dollars in millions) September 30, 2021 December 31, 2020 Related party receivables $ 5 $ 9 Related party payables 1 2 Related party short-term debt — 16 Related party long-term debt — 115 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 and facilitate the temporary arrangement of the sale of Veoneer products manufactured for certain customers for a limited period after the Spin-Off. Autoliv collects the customer payments and remits the payments to Veoneer. |
Factoring
Factoring | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Factoring | Factoring The Company receives bank notes generally maturing within six months from certain of its customers in China to settle trade accounts receivable. The Company may hold such bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third party financial institutions in exchange for cash. For the nine months ended September 30, 2021 and 2020, the Company entered into arrangements with financial institutions and sold $190 million and $38 million, respectively, of trade receivables without recourse and $47 million and $10 million, respectively, of bank notes without recourse, which qualify as sales as all rights to the trade and notes receivable have passed to the financial institution. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Segments | The Company has one operating segment, the Electronics segment. The Company previously had two operating segments, Electronics and Brake Systems. Electronics includes all electronics resources and expertise, Restraint Control Systems and Active Safety products, and Brake Systems provided brake control and actuation systems. The Asian business of the Brake Systems segment was sold on February 3, 2020 and the majority of the Brake Systems business in North America was sold on August 10, 2020. The remaining Brake Systems business is no longer a reportable segment due to immateriality. |
Restricted Cash | Restricted CashRestricted cash represents amounts designated for uses other than current operations. As of September 30, 2021 the Company has $1 million of Restricted cash related to cash collateral for other corporate purposes. |
Concentration of Credit Risk | Concentration of Credit Risk A substantial majority of the Company’s trade receivables are derived from sales to Original Equipment Manufacturers ("OEMs"). For the three and nine months ended September 30, 2021, the Company’s four largest customers accounted for 41% and 44% of net sales, respectively, and for the three and nine months ended September 30, 2020, the Company’s four largest customers accounted for 55% and 59% of net sales, respectively. Additionally, as of September 30, 2021 and December 31, 2020, these four largest customers accounted for 31% and 40% of the Company’s accounts receivables, respectively. The Company believes that the receivable balances from these largest customers do not represent a significant credit risk based on past collection experience. The Company has adopted credit policies and standards intended to accommodate industry growth and inherent risk. The Company believes that credit risks are moderated by the financial stability of the Company’s major customers. |
New Accounting Standards | New Accounting Standards Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s unaudited condensed consolidated financial statements. Adoption of New Accounting Standards In December 2019, the FASB issued ASU 2019-12, " Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, " which simplifies the accounting for income taxes. ASU 2019-12 is effective for public business entities for annual periods beginning after December 15, 2020, and early adoption is permitted. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company adopted ASU 2019-12 in the first quarter of 2021. The adoption of ASU 2019-12 did not have a material impact on the Company's unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. ASU 2018-14 removes the requirements to disclose: amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year; the amount and timing of plan assets expected to be returned to the employer; and the effects of a one-percentage point change in assumed health care cost trend rates. ASU 2018-14 requires disclosure of an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company adopted ASU 2018-14 in the first quarter of 2021. The adoption of ASU 2018-14 did not have a material impact on the Company's unaudited condensed consolidated financial statements. Accounting Standards Issued But Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting ." The guidance provides optional expedients and exceptions related to certain contract modifications and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another rate that is expected to be discontinued. The guidance was effective upon issuance and generally can be applied to applicable contract modifications and hedge relationships prospectively through December 31, 2022. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact on its disclosures. In August 2020, the FASB issued ASU 2020-06, " Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) ." The guidance provides simplifications of the accounting for convertible instruments and reduces the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current U.S. GAAP. In addition to further improve the decision usefulness and relevance of the information being provided to users of financial statements, information transparency has been increased by amending certain disclosure requirements. The guidance is effective for public business entities for fiscal years beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. In addition, an entity should adopt the guidance as of the beginning of its annual fiscal year. The amendments in this update are required to be applied through either a modified retrospective method of transition or a fully retrospective method of transition. In applying the modified retrospective method, entities should apply the guidance to transactions outstanding as of the beginning of the fiscal year in which the amendments are adopted. The Company is currently evaluating this guidance to determine the impact on its disclosures. |
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. Assets which are valued at net asset value per share ("NAV"), or its equivalent, as a practical expedient are reported outside the fair value hierarchy but are included in the total assets for reporting and reconciliation purposes. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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. Net Sales by Region Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 111 $ — $ 111 $ 85 $ — $ 85 Americas 116 11 127 123 13 136 Europe 153 — 153 150 — 150 Total net sales $ 380 $ 11 $ 391 $ 358 $ 13 $ 371 Net Sales by Region Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Asia $ 310 $ — $ 310 $ 202 $ 24 $ 226 Americas 362 35 $ 397 283 33 $ 316 Europe 501 — 501 376 — 376 Total net sales $ 1,173 $ 35 $ 1,208 $ 861 $ 57 $ 918 Net Sales by Products Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 153 $ — $ 153 $ 188 $ — $ 188 Active Safety products 215 — 215 170 — 170 Brake Systems — 11 11 — 13 13 Other 12 — 12 — — — Total net sales $ 380 $ 11 $ 391 $ 358 $ 13 $ 371 Net Sales by Products Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 (Dollars in millions) Electronics Brake Systems Total Electronics Brake Systems Total Restraint Control Systems $ 517 $ — $ 517 $ 450 $ — $ 450 Active Safety products 618 — 618 411 — 411 Brake Systems — 35 35 — 57 57 Other 38 — 38 — — — Total net sales $ 1,173 $ 35 $ 1,208 $ 861 $ 57 $ 918 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of business acquisitions, by acquisition | The following table summarizes the final fair values of identifiable acquired assets and assumed liabilities: Assets As of July 1, 2020 Cash and cash equivalents $ 4 Receivable, net 12 Property, plant and equipment, net 3 Operating lease right-of-use assets 8 Goodwill 25 Total assets $ 52 Tax payable 2 Accrued liabilities 3 Operating lease non-current liabilities 10 Total liabilities $ 15 Net assets acquired $ 37 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The Company’s short and long-term debt consists of the following: As of (Dollars in millions) September 30, 2021 December 31, 2020 Short-Term Debt: Short-term borrowings $ 4 $ 4 Long-Term Debt: 4.00% Convertible Senior Notes due 2024 (Carrying value) 177 170 Other long-term borrowings 8 7 Total Debt $ 189 $ 181 The following table presents the outstanding principal amount and carrying value of the Notes: 4.00% Convertible Senior Notes due 2024 As of (Dollars in millions) September 30, 2021 December 31, 2020 Principal amount (face value) $ 207 $ 207 Unamortized issuance cost (3) (4) Unamortized debt discount (27) (33) Net Carrying value $ 177 $ 170 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Inventories are stated at the lower of cost (according to first-in-first-out basis, "FIFO") and net realizable value. The components of inventories were as follows: As of (Dollars in millions) September 30, 2021 December 31, 2020 Raw materials $ 158 $ 105 Work in progress 23 14 Finished products 52 51 Inventories 233 170 Inventory valuation reserve (46) (36) Total inventories, net of reserve $ 187 $ 134 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Summary of accrued expenses | As of (Dollars in millions) September 30, 2021 December 31, 2020 Operating related accruals $ 57 $ 70 Employee related accruals 76 102 Customer pricing accruals 15 20 Product related liabilities 1 18 19 Other accruals 35 21 Total Accrued Expenses $ 201 $ 232 1 As of September 30, 2021 and December 31, 2020, $8 million and $9 million, respectively, of product related liabilities were indemnifiable losses subject to indemnification by Autoliv and an indemnification asset is included in Other current assets. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost | The Company’s net periodic benefit costs for plans for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions) 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 1 1 2 2 Expected return on plan assets (1) (1) (2) (2) Net periodic benefit cost $ 1 $ 1 $ 3 $ 3 |
Contingent Liabilities (Tables)
Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loss Contingency [Abstract] | |
Schedule of change in balance sheet position of product related liabilities | The table below summarizes the change in product related liabilities in the unaudited Condensed Consolidated Balance Sheet. Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions) 2021 2020 2021 2020 Reserve at beginning of the period $ 18 $ 18 $ 19 $ 15 Change in reserve 2 2 4 8 Cash payments (2) (1) (5) (4) Reserve at end of the period $ 18 $ 19 $ 18 $ 19 |
Loss per share (Tables)
Loss per share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine month periods ended September 30, 2021 and 2020. Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions, except per share amounts) 2021 2020 2021 2020 Numerator: Basic and diluted: Net loss attributable to Veoneer $ (94) $ (132) $ (298) $ (454) Denominator: Basic: Weighted average number of shares outstanding (in millions) 111.96 111.59 111.83 111.55 Diluted: Weighted-average number of shares outstanding, assuming dilution (in millions) 1 111.96 111.59 111.83 111.55 Basic loss per share $ (0.84) $ (1.18) $ (2.66) $ (4.07) Diluted loss per share $ (0.84) $ (1.18) $ (2.66) $ (4.07) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of (loss)/income before income taxes | Loss Before Income Taxes Three Months Ended Nine Months Ended (Dollars in millions) 2021 2020 2021 2020 Electronics $ (69) $ (80) $ (230) $ (202) Brake Systems — (3) — (37) Segment operating loss (69) (83) (230) (239) Corporate and other (20) (20) (55) (51) Loss on divestiture and assets impairment charge, net — (24) — (91) Interest and other non-operating items, net (5) (4) (13) (7) Gain (loss) from equity method investment 3 (1) 12 (39) Loss before income taxes $ (91) $ (132) $ (286) $ (427) |
Relationship with Former Pare_2
Relationship with Former Parent and Related Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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: Related Party As of (Dollars in millions) September 30, 2021 December 31, 2020 Related party receivables $ 5 $ 9 Related party payables 1 2 Related party short-term debt — 16 Related party long-term debt — 115 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | Oct. 04, 2021USD ($)$ / shares | Aug. 10, 2020USD ($)segment | Sep. 30, 2021USD ($) | Aug. 09, 2020segment | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Feb. 03, 2020transaction | Oct. 30, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of operating segments | segment | 2 | 2 | 1 | |||||
Proceeds from divestitures | $ 0 | $ 198,000,000 | ||||||
Accrued bonuses earned | $ 16,000,000 | 16,000,000 | ||||||
Other Operating Income (Expense) | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Payments for merger related costs | $ 11,000,000 | |||||||
Retention bonus expense | $ 1,000,000 | |||||||
Subsequent Event | Qualcomm | Veoneer, Inc | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Share price (USD per share) | $ / shares | $ 37 | |||||||
Merger, transaction amount | $ 4,500,000,000 | |||||||
Subsequent Event | Magna International Inc. | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Loss on contract termination | $ 110,000,000 | |||||||
VNBS | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Ownership percentage in joint venture | 51.00% | |||||||
VBNS | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Disposal group, including discontinued operation, consideration | $ 176,000,000 | |||||||
Number of transactions | transaction | 2 | |||||||
VBS | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Disposal group, including discontinued operation, consideration | $ 1 | |||||||
Proceeds from divestitures | $ 22,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted cash | $ 1 | $ 1 | $ 0 | ||
Revenue from Contract with Customer | Customer Concentration Risk | Four Largest Customers | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Concentration risk, percentage | 41.00% | 55.00% | 44.00% | 59.00% | |
Accounts Receivable | Customer Concentration Risk | Four Largest Customers | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Concentration risk, percentage | 31.00% | 40.00% |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Primary Region and Products of Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 391 | $ 371 | $ 1,208 | $ 918 |
Operating Segments | Restraint Control Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 153 | 188 | 517 | 450 |
Operating Segments | Active Safety products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 215 | 170 | 618 | 411 |
Operating Segments | Brake Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11 | 13 | 35 | 57 |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12 | 0 | 38 | 0 |
Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 380 | 358 | 1,173 | 861 |
Electronics | Operating Segments | Restraint Control Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 153 | 188 | 517 | 450 |
Electronics | Operating Segments | Active Safety products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 215 | 170 | 618 | 411 |
Electronics | Operating Segments | Brake Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Electronics | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12 | 0 | 38 | 0 |
Brake Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11 | 13 | 35 | 57 |
Brake Systems | Operating Segments | Restraint Control Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Brake Systems | Operating Segments | Active Safety products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Brake Systems | Operating Segments | Brake Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11 | 13 | 35 | 57 |
Brake Systems | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 111 | 85 | 310 | 226 |
Asia | Electronics | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 111 | 85 | 310 | 202 |
Asia | Brake Systems | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 24 |
Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 127 | 136 | 397 | 316 |
Americas | Electronics | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 116 | 123 | 362 | 283 |
Americas | Brake Systems | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11 | 13 | 35 | 33 |
Europe | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 153 | 150 | 501 | 376 |
Europe | Electronics | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 153 | 150 | 501 | 376 |
Europe | Brake Systems | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) kr in Millions, $ in Millions | Jul. 01, 2020USD ($)business_unitsoftware_engineer | Mar. 31, 2020USD ($) | Mar. 31, 2020SEK (kr) | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Mar. 31, 2021 | Apr. 02, 2020 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 317 | $ 317 | |||||
Zenuity, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 25 | ||||||
Business combination, acquisition related costs | $ 1 | ||||||
Zenuity AB | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage in joint venture | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||
Cash contribution to joint venture | $ 16 | kr 150 | |||||
Zenuity AB | Zenuity, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Cash contribution to joint venture | $ 37 | ||||||
Number of software engineers | software_engineer | 200 | ||||||
Number of business units | business_unit | 2 |
Business Combinations - Schedul
Business Combinations - Schedule of Business Acquisitions by Acquisition (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Jul. 01, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 317 | $ 317 | |
Zenuity, Inc | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 4 | ||
Receivable, net | 12 | ||
Property, plant and equipment, net | 3 | ||
Operating lease right-of-use assets | 8 | ||
Goodwill | 25 | ||
Total assets | 52 | ||
Tax payable | 2 | ||
Accrued liabilities | 3 | ||
Operating lease non-current liabilities | 10 | ||
Total liabilities | 15 | ||
Net assets acquired | $ 37 |
Divestiture and held for sale -
Divestiture and held for sale - Narrative (Details) - USD ($) | Aug. 10, 2020 | Feb. 03, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets impairment charge | $ 0 | $ 168,000,000 | |||
Proceeds from divestitures | $ 0 | 198,000,000 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | VBS | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets impairment charge | $ 144,000,000 | ||||
Disposal group, including discontinued operation, consideration | $ 1 | ||||
Proceeds from divestitures | $ 22,000,000 | ||||
Disposal group, not discontinued operation, gain (loss) on disposal, net | $ 0 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | VBNS | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal group, including discontinued operation, consideration | $ 176,000,000 | ||||
Disposal group, not discontinued operation, gain (loss) on disposal, net | 175,000,000 | ||||
Disposal group, not discontinued operation, gain (loss) on disposal, net of closing costs | $ 77,000,000 |
Debt - Schedule of Short and Lo
Debt - Schedule of Short and Long Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 01, 2019 | May 28, 2019 |
Short-Term Debt: | ||||
Short-term borrowings | $ 4 | $ 4 | ||
Long-Term Debt: | ||||
Total Debt | 189 | 181 | ||
Convertible Senior Notes | 4.00% Convertible Senior Notes due 2024 (Carrying value) | ||||
Long-Term Debt: | ||||
Long-Term Debt: | $ 177 | $ 170 | ||
Stated interest rate | 4.00% | 4.00% | 4.00% | 4.00% |
Secured Debt | Other long-term borrowings | ||||
Long-Term Debt: | ||||
Long-Term Debt: | $ 8 | $ 7 |
Debt - Narrative (Details)
Debt - Narrative (Details) | May 28, 2019USD ($)trading_day$ / shares | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Dec. 31, 2020 | Dec. 01, 2019 |
Debt Instrument [Line Items] | |||||||
Interest expense | $ 5,000,000 | $ 4,000,000 | $ 14,000,000 | $ 13,000,000 | |||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Trading days | trading_day | 20 | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Trading days | trading_day | 30 | ||||||
Convertible Senior Notes | 4.00% Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | ||
Aggregate principal amount of debt | $ 207,000,000 | ||||||
Net proceeds | 200,000,000 | ||||||
Debt issuance costs | $ 7,000,000 | ||||||
Amortization period of interest expense | 5 years | ||||||
Debt instrument, convertible, conversion ratio | 0.0448179000 | ||||||
Debt instrument, annual principal payment | $ 1,000 | ||||||
Initial conversion price (in dollars per share) | $ / shares | $ 22.3125 | $ 22.3125 | $ 22.3125 | ||||
Threshold percentage of stock price trigger | 130.00% | ||||||
Redemption price | 100.00% | ||||||
Measurement period, number of days after | 5 days | ||||||
Measurement period | 10 days | ||||||
Effective interest rate | 10.00% | 10.00% | |||||
Equity component of notes | $ 46,000,000 | $ 46,000,000 | |||||
Convertible debt fair value | $ 334,000,000 | $ 334,000,000 | |||||
Convertible Senior Notes | 4.00% Convertible Senior Notes | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Threshold percentage of stock price trigger | 98.00% | ||||||
Convertible Senior Notes | 4.00% Convertible Senior Notes | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, convertible, conversion ratio | 0.0571428000 | ||||||
Threshold percentage of stock price trigger | 130.00% |
Debt - Schedule of Notes (Detai
Debt - Schedule of Notes (Details) - Convertible Senior Notes - 4.00% Convertible Senior Notes due 2024 (Carrying value) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal amount (face value) | $ 207 | $ 207 |
Unamortized issuance cost | (3) | (4) |
Unamortized debt discount | (27) | (33) |
Net Carrying value | $ 177 | $ 170 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring expenses (less than for the 3 months 2021 period) | $ 1,000,000 | $ 0 | $ 5,000,000 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
(Losses) (less than) and gains on derivative financial instruments recognized in other non-operating items | $ 3 | $ 2 | $ 7 | $ 4 | |
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 | 0 | |||
Foreign exchange forward contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional value | $ 314 | $ 314 | $ 179 | ||
Derivative asset | $ 6 | $ 6 | $ 1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,000,000 | $ 0 | $ 12,000,000 | $ 26,000,000 |
Net discrete (benefit) expense related to changes in valuation allowance | $ 0 | $ (2,000,000) | $ 0 | $ 17,000,000 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 158 | $ 105 |
Work in progress | 23 | 14 |
Finished products | 52 | 51 |
Inventories | 233 | 170 |
Inventory valuation reserve | (46) | (36) |
Total inventories, net of reserve | $ 187 | $ 134 |
Equity Method Investment - Narr
Equity Method Investment - Narrative (Details) kr in Millions | Jul. 01, 2020USD ($)business_unitsoftware_engineer | Jul. 01, 2020SEK (kr)business_unitsoftware_engineer | Sep. 30, 2021USD ($)investment | Mar. 31, 2021USD ($) | Mar. 31, 2021SEK (kr) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020SEK (kr) | Sep. 30, 2021USD ($)investment | Sep. 30, 2020USD ($) | Jun. 30, 2021 | Dec. 31, 2020USD ($) | Apr. 02, 2020 | Jun. 30, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Number of equity method investments | investment | 2 | 2 | ||||||||||||
Equity method investment | $ 22,000,000 | $ 22,000,000 | $ 153,000,000 | |||||||||||
Gain (loss) from equity method investment | 3,000,000 | $ (1,000,000) | 12,000,000 | $ (39,000,000) | ||||||||||
Zenuity and AutoTechFund | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment | 22,000,000 | 22,000,000 | 153,000,000 | |||||||||||
Zenuity | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage in joint venture | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||
Cash contribution to joint venture | $ 16,000,000 | kr 150 | ||||||||||||
Proceeds from dividends received | $ 13,000,000 | kr 108 | ||||||||||||
Gain (loss) from equity method investment | 3,000,000 | $ 1,000,000 | (12,000,000) | $ 39,000,000 | ||||||||||
Zenuity | Zenuity, Inc | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Cash contribution to joint venture | $ 37,000,000 | |||||||||||||
Number of software engineers | software_engineer | 200 | 200 | ||||||||||||
Number of business units | business_unit | 2 | 2 | ||||||||||||
Equity method investment | 0 | 0 | ||||||||||||
Zenuity | Zenuity, Inc | Intellectual Property | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Intellectual property acquired, consideration | $ 114,000,000 | kr 1,067 | $ 127,000,000 | |||||||||||
AutoTechFund I, L.P | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership percentage in joint venture | 20.00% | |||||||||||||
Equity method investment | $ 14,000,000 | 14,000,000 | $ 12,000,000 | $ 15,000,000 | ||||||||||
Proceeds from equity method investment, distribution | $ 3,000,000 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Operating related accruals | $ 57 | $ 70 |
Employee related accruals | 76 | 102 |
Customer pricing accruals | 15 | 20 |
Product related liabilities | 18 | 19 |
Other accruals | 35 | 21 |
Total Accrued Expenses | 201 | 232 |
Affiliated Entity | ||
Loss Contingencies [Line Items] | ||
Product related liabilities | $ 8 | $ 9 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension plans | Pension Plan [Member] | |||
Existing Veoneer Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 3 | $ 3 |
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Net periodic benefit cost | $ 1 | $ 1 | $ 3 | $ 3 |
Stock Incentive Plan - Narrativ
Stock Incentive Plan - Narrative (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | May 10, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage grantee may earn based on achievement of specific targets | 100.00% | |||||
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 (in shares) | 3,000,000 | 13,000,000 | ||||
Number of shares used for conversion of outstanding grants (in shares) | 1,000,000 | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 203,439 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 182,272 | |||||
Restricted Stock Units (RSUs) With Dividend Equivalent Rights | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 36,841 | |||||
RSUs and PSs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date fair value | $ 14 | |||||
Stock-based compensation expense | $ 2 | $ 1 | $ 7 | $ 6 | ||
Spin-Off | 2018 Stock Incentive Plan | Autoliv | ||||||
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 (in shares) | 1,500,000 | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage grantee may earn based on achievement of specific targets | 0.00% | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage grantee may earn based on achievement of specific targets | 200.00% |
Contingent Liabilities - Schedu
Contingent Liabilities - Schedule of Change in Balance Sheet Position of Product Related Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Product Warranty Accrual [Roll Forward] | ||||
Reserve at beginning of the period | $ 18 | $ 18 | $ 19 | $ 15 |
Change in reserve | 2 | 2 | 4 | 8 |
Cash payments | (2) | (1) | (5) | (4) |
Reserve at end of the period | $ 18 | $ 19 | $ 18 | $ 19 |
Contingent Liabilities - Narrat
Contingent Liabilities - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Product related liabilities | $ 18 | $ 19 |
Affiliated Entity | ||
Loss Contingencies [Line Items] | ||
Product related liabilities | $ 8 | $ 9 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic and diluted: | ||||
Net loss attributable to Veoneer | $ (94) | $ (132) | $ (298) | $ (454) |
Denominator: | ||||
Weighted average number of shares outstanding (in millions) | 111,960 | 111,590 | 111,830 | 111,550 |
Diluted: Weighted-average number of shares outstanding, assuming dilution (in millions) (in shares) | 111,960 | 111,590 | 111,830 | 111,550 |
Basic loss per share (in dollars per share) | $ (0.84) | $ (1.18) | $ (2.66) | $ (4.07) |
Diluted loss per share (in dollars per share) | $ (0.84) | $ (1.18) | $ (2.66) | $ (4.07) |
Loss per share - Narrative (Det
Loss per share - Narrative (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | May 28, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Maximum number of shares issuable if debt was converted (in shares) | 9,277,305 | 9,277,305 | |||
Stock Compensation Plan | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares excluded from calculation (in shares) | 665,130 | 963,171 | 758,551 | 741,120 | |
Convertible Debt Securities | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares excluded from calculation (in shares) | 9,277,305 | 9,277,305 | 9,277,305 | 9,277,305 | |
Convertible Senior Notes | 4.00% Convertible Senior Notes due 2024 (Carrying value) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Initial conversion price (in dollars per share) | $ 22.3125 | $ 22.3125 | $ 22.3125 |
Segment Information - Narrative
Segment Information - Narrative (Details) - segment | Aug. 10, 2020 | Aug. 09, 2020 | Sep. 30, 2021 |
Segment Reporting [Abstract] | |||
Number of operating segments | 2 | 2 | 1 |
Segment Information - Schedule
Segment Information - Schedule of (Loss)/Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | $ (89) | $ (103) | $ (285) | $ (290) |
Loss on divestiture and assets impairment charge, net | 0 | (24) | 0 | (91) |
Interest and other non-operating items, net | (5) | (4) | (13) | (7) |
Gain (loss) from equity method investment | 3 | (1) | 12 | (39) |
Loss before income taxes | (91) | (132) | (286) | (427) |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | (69) | (83) | (230) | (239) |
Corporate and other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | (20) | (20) | (55) | (51) |
Electronics | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | (69) | (80) | (230) | (202) |
Brake Systems | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | $ 0 | $ (3) | $ 0 | $ (37) |
Relationship with Former Pare_3
Relationship with Former Parent and Related Entities - Narrative (Details) - Autoliv - Affiliated Entity - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 16,000,000 | $ 18,000,000 | $ 57,000,000 | $ 48,000,000 |
Transition Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Expense under the TSA (less than in 2020) | 0 | 1,000,000 | 0 | 1,000,000 |
Income under the TSA (less than in 2020) | $ 0 | $ 1,000,000 | $ 0 | $ 1,000,000 |
Relationship with Former Pare_4
Relationship with Former Parent and Related Entities - Summary of Amount Due to and from Related Parties (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Related party receivables | $ 5 | $ 9 |
Related party payables | 1 | 2 |
Related party short-term debt | 0 | 16 |
Related party long-term debt | $ 0 | $ 115 |
Factoring (Details)
Factoring (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Receivables [Abstract] | ||
Sale of trade receivables | $ 190 | $ 38 |
Sale of bank notes without recourse | 47 | $ 10 |
Trade notes receivables | $ 1 |