Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 11, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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, Postal Zip Code | SE- 103 02 | ||
Entity Address, City or Town | Stockholm, | ||
Entity Address, Country | SE | ||
Local Phone Number | 8 527 762 00 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | VNE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,580 | ||
Entity Common Stock, Shares Outstanding | 112,019,245 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference Portions of the registrant's Proxy Statement for the registrant's 2022 Annual Meeting of Stockholders (the “2022 Proxy Statement”) are incorporated by reference into Part III of the Form 10-K to the extent stated herein. The Proxy Statement or an amended report on Form 10-K will be filed within 120 days of the registrant's fiscal year ended December 31, 2021. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001733186 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 1433 |
Auditor Name | Ernst & Young AB |
Auditor Location | Stockholm, Sweden |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 1,657 | $ 1,373 | $ 1,902 |
Cost of sales | (1,384) | (1,191) | (1,591) |
Gross profit | 273 | 182 | 311 |
Selling, general and administrative expenses | (159) | (165) | (189) |
Research, development and engineering expenses, net | (424) | (407) | (562) |
Amortization of intangibles | (7) | (6) | (20) |
Other (expense) / income, net | (40) | 29 | 0 |
Operating loss | (357) | (367) | (460) |
Gain on divestiture and assets impairment charge, net | 0 | (91) | 0 |
Gain/(loss) from equity method investment | 6 | (39) | (70) |
Interest income | 3 | 9 | 20 |
Interest expense | (21) | (20) | (12) |
Other non-operating items, net | 0 | (4) | 1 |
Loss before income taxes | (369) | (512) | (521) |
Income tax expense | (16) | (32) | (1) |
Net loss | (385) | (544) | (522) |
Less: Net income/(loss) attributable to non-controlling interest | 0 | 1 | (22) |
Net loss attributable to controlling interest | $ (385) | $ (545) | $ (500) |
Basic loss per share (in dollars per share) | $ (3.44) | $ (4.89) | $ (4.92) |
Diluted loss per share (in dollars per share) | $ (3.44) | $ (4.89) | $ (4.92) |
Weighted average number of shares outstanding, (in millions) | 111,880 | 111,560 | 101,620 |
Weighted average number of shares outstanding, assuming dilution (in millions) | 111,880 | 111,560 | 101,620 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (385) | $ (544) | $ (522) |
Other comprehensive (loss) income, before tax: | |||
Change in cumulative translation adjustment | (19) | 47 | (24) |
Pension gains /(losses) | 8 | (2) | (3) |
Other comprehensive (loss) income, before tax | (11) | 45 | (27) |
Income tax (expense) /benefit | (2) | 1 | 2 |
Other comprehensive (loss) income, net of tax | (13) | 46 | (25) |
Comprehensive loss | (398) | (498) | (547) |
Less: Comprehensive income/(loss) attributable to non-controlling interest | 0 | 2 | (22) |
Comprehensive loss attributable to controlling interest | $ (398) | $ (500) | $ (525) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 423 | $ 758 |
Restricted cash | 1 | 0 |
Receivables, net | 267 | 292 |
Inventories, net | 192 | 134 |
Related party receivable | 6 | 9 |
Prepaid expenses and other contract assets | 38 | 36 |
Other current assets | 14 | 15 |
Total current assets | 941 | 1,244 |
Property, plant and equipment, net | 369 | 431 |
Operating lease right-of-use assets | 79 | 89 |
Equity method investment | 0 | 153 |
Goodwill | 316 | 317 |
Intangible assets, net | 13 | 21 |
Deferred tax assets | 6 | 6 |
Other non-current assets | 26 | 27 |
Total assets | 1,750 | 2,288 |
Liabilities, Current [Abstract] | ||
Accounts payable | 281 | 257 |
Related party payables | 1 | 2 |
Accrued expenses | 209 | 232 |
Income tax payable | 5 | 25 |
Related party short-term debt | 0 | 16 |
Other current liabilities | 69 | 55 |
Total current liabilities | 565 | 587 |
4% Convertible Senior Notes due 2024 | 179 | 170 |
Related party long-term debt | 0 | 115 |
Pension liability | 16 | 20 |
Deferred tax liabilities | 16 | 12 |
Operating lease non-current liabilities | 62 | 71 |
Financial lease non-current liabilities | 43 | 46 |
Other non-current liabilities | 16 | 28 |
Total non-current liabilities | 332 | 462 |
Equity | ||
Common stock (par value $1.00, 325 million shares authorized, 112 million and 111 million shares issued and outstanding as of December 31, 2021 and 2020, respectively) | 112 | 111 |
Additional paid-in capital | 2,360 | 2,349 |
Accumulated deficit | (1,611) | (1,226) |
Accumulated other comprehensive income/(loss) | (8) | 5 |
Total Equity | 853 | 1,239 |
Total Equity and non-controlling interests | 853 | 1,239 |
Total liabilities, Equity and non-controlling interests | $ 1,750 | $ 2,288 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
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 | 112,000,000 |
Shares outstanding (in shares) | 111,000,000 | 111,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net loss | $ (385) | $ (544) | $ (522) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 114 | 103 | 115 |
Gain on divestiture | 0 | (77) | 0 |
Assets impairment charge | 0 | 168 | 0 |
(Gain) /loss from equity method investments | (6) | 39 | 70 |
Stock-based compensation expense | 11 | 6 | 5 |
Deferred income taxes | 1 | 1 | (6) |
Other, net | 16 | 15 | (11) |
Change in operating assets and liabilities | |||
Receivables, gross | 19 | (4) | 43 |
Accounts payable | 36 | 18 | (56) |
Related party receivable and payables, net | 1 | 2 | 35 |
Income taxes | (17) | 16 | 3 |
Inventories, gross | (82) | 8 | 5 |
Accrued expenses | (8) | 40 | 19 |
Prepaid expenses and contract assets | (4) | 12 | (15) |
Other current assets and liabilities, net | 13 | 5 | (10) |
Net cash used in operating activities | (291) | (192) | (325) |
Investing activities | |||
Proceeds from divestitures | 0 | 198 | 0 |
Proceeds from sale of property, plant and equipment | 1 | 10 | 2 |
Capital expenditures | (60) | (91) | (213) |
Equity method investments | 29 | 9 | |
Equity method investments | (58) | ||
Short-term investments | 0 | 0 | 5 |
Acquisition of intangible assets | (1) | (10) | 0 |
Acquisition of businesses and interest in affiliates, net of cash acquired | 0 | (33) | 0 |
Net decrease (increase) other non-current assets | 0 | 2 | (1) |
Net cash (used in) / provided by investing activities | (31) | 85 | (265) |
Financing activities | |||
Issuance of common stock | 0 | 0 | 403 |
Dividend paid to non-controlling interest | 0 | (5) | 0 |
(Repayment of)/proceeds from long-term debt | 0 | (1) | 210 |
(Repayment of)/proceeds from short-term debt | (8) | (3) | 22 |
Proceeds from exercise of stock options | 1 | 0 | 0 |
Net increase in related party short-term debt | 0 | 0 | 1 |
Net cash provided by financing activities | (7) | (9) | 636 |
Effect of exchange rate changes on cash and cash equivalents | (5) | 15 | (16) |
(Decrease)/increase in cash and cash equivalents | (334) | (101) | 30 |
Cash and cash equivalents at beginning of year | 758 | 859 | 864 |
Cash and equivalents at end of period, assets held for sale | 0 | 0 | (35) |
Cash and cash equivalents at end of year | 424 | 758 | 859 |
Supplemental Disclosures: | |||
Cash paid for income taxes | 31 | 8 | 11 |
Cash paid for interest | $ 9 | $ 8 | $ 4 |
Consolidated Statements of Chan
Consolidated Statements of Changes Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) /Gain | Non-controlling Interests |
Balance at beginning of period at Dec. 31, 2018 | $ 1,927 | $ 87 | $ 1,938 | $ (181) | $ (19) | $ 101 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (522) | (500) | (22) | |||
Foreign currency translation | (24) | (24) | ||||
Pension liability net of tax | (1) | (1) | ||||
Stock based compensation | 5 | 5 | ||||
Issuance of common shares | 403 | 24 | 379 | |||
Purchase of minority interest | 0 | (14) | 14 | |||
Equity component of issuance of convertible notes, net of taxes (Note 5) | 35 | 35 | ||||
Dividend | (5) | (5) | ||||
Balance at end of period at Dec. 31, 2019 | 1,818 | 111 | 2,343 | (681) | (44) | 89 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (544) | (545) | 1 | |||
Foreign currency translation | 48 | 47 | 1 | |||
Pension liability net of tax | (1) | (1) | ||||
Stock based compensation | 6 | 6 | ||||
Business divestitures | (88) | 3 | (91) | |||
Balance at end of period at Dec. 31, 2020 | 1,239 | 111 | 2,349 | (1,226) | 5 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (385) | (385) | ||||
Foreign currency translation | (19) | (19) | ||||
Pension liability net of tax | 6 | 6 | ||||
Stock based compensation | 11 | 11 | ||||
Issuance of common shares | 1 | 1 | ||||
Balance at end of period at Dec. 31, 2021 | $ 853 | $ 112 | $ 2,360 | $ (1,611) | $ (8) | $ 0 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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. Certain amounts in the consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. Equity and Debt Offerings On May 28, 2019, the Company completed equity and debt public offerings of 24,000,000 shares of common stock and $207 million aggregate principal amount of 4.00% Convertible Senior Notes due 2024 (the “Notes”) (including $27 million aggregate principal amount pursuant to the underwriters’ over-allotment option to purchase additional notes). The public offering price for our common stock offering was $17.50 per share. During 2019, the Company received net proceeds of $403 million from the common stock offering and $200 million from the Notes offering, in each case after deducting the underwriting discounts and issuance costs directly attributable to each offering. Joint Venture with Nissin-Kogyo Co. Ltd. (“Nissin Kogyo”) On June 14, 2019, the Company signed agreements with Nissin Kogyo, its joint venture partner in Veoneer Nissin Brake Systems ("VNBS"), providing for certain structural changes to the joint venture and the funding of VNBS. Pursuant to the agreements, Veoneer acquired Nissin Kogyo’s interests in the US operations of Veoneer Nissin Brake Systems ("VNBS"), referred to as Veoneer Brake Systems ("VBS"), and VNBS transferred or licensed the VNBS technologies necessary to operate the VBS business to VBS. VBS, including the transferred or licensed technologies, was a wholly-owned Veoneer business effective on the closing date, June 28, 2019. VNBS provided certain transition services to VBS. Under the agreement, Nissin Kogyo provided guarantees for certain VNBS commercial loans corresponding to 49% of the funding Veoneer had previously unilaterally provided to VNBS. During 2019, Veoneer received approximately $20 million as debt repayment from VNBS. Divestiture of Veoneer Nissin Brake Systems ("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, and Honda Motor Co., Ltd. The aggregate sale 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 6 "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 Active Safety US, Inc ("ZF"). The aggregate sale price was $1. In connection with the transaction, the Company received approximately $22 million from ZF for VBS operational cost reimbursement. See Note 6 "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. 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 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 for the remainder of Veoneer’s business. 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, 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 $18 million of merger related expenses in Other (expense)/ income, net in the Consolidated Statements of Operations, for the year ended December 31, 2021. During 2021 the Operating cash flow impact was negative $10 million. During 2021, the Company implemented an employee retention bonus program to retain certain employees. The current amount of the program is approximately $33 million which will be accrued ratably over the period the bonuses are earned. During the year approximately $11 million was accrued and included in the merger related expenses in Other (expense)/ income, net in the Consolidated Statements of Operations for the year ended December 31, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include the consolidated assets, liabilities, sales, and expenses of the Veoneer business as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020, and 2019. All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. See Note 23, Relationship with Former Parent and Related Entities, for a further description of related party transactions between Autoliv and Veoneer. The consolidated financial statements include the accounts of the Company and its subsidiaries that are more than 50% owned and over which the Company exercises control. Investments in affiliates of greater than 20% and for which the Company does not exercise control, but does have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. All other equity investments are measured at cost, less impairment, with changes in fair value recognized in net income. Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant to the VIE. Business Combinations Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805 , Business Combinations . The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis. It is classified as a liability in the consolidated balance sheet. Equity Method Investments Investments accounted for under the equity method, means that a proportional share of the equity method investment’s net income increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of Operations, the proportional share of the net loss is reported as Gain (loss) from equity method investments. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of retroactive price adjustments, estimations associated with purchase price allocations regarding business combinations, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, assessment of the useful lives of intangible assets, estimation of pension benefit expense based on actuarial assumptions, estimation of accruals for warranty and product liabilities, uncertain tax positions, valuation allowances and contingent liabilities. However, actual results could differ from those estimates. Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers , revenue is measured based on consideration specified in a contract with a customer, adjusted for any variable consideration (i.e. price concessions or annual price adjustments) as estimated at contract inception. The variable consideration calculation involves management assumptions including the volume of light vehicle production, sales volumes for specific parts, or price concessions to be granted. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. In addition, from time to time, Veoneer may make payments to customers in connection with ongoing and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments, unless certain criteria are met, warranting capitalization. If the payments are capitalized, the amounts are recognized as a reduction of the transaction price as the related goods are transferred. As of December 31, 2021 and 2020, the Company had no outstanding obligations to make payments to customers in connection with ongoing and future business. The Company assesses these amounts for impairment. During 2020 Assets Held for Sale were impaired as part of the evaluation of the value less costs to sell of that asset group. See Note 6 Divestiture for additional information. No impairment was recorded in 2021 or 2019. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of goods and services The following is a description of principal activities from which the Company generates its revenue. The Company previously had two operating segments, Electronics includes all electronics resources and expertise, Restraint Control Systems and Active Safety products, and Brake Systems provided brake control and actuation systems. Both of the segments generate revenue from the sale of production parts to original equipment manufacturers (“OEMs”). The remaining Brake Systems business is no longer a reportable segment due to immateriality. The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any price concession or annual price adjustments, is based on stand-alone selling prices for each of the products. The Company recognizes revenue for production parts primarily at a point in time. For production parts with revenue recognized at a point in time, the Company recognizes revenue upon transfer of control, which generally occurs upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically F.O.B. shipping point). There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and a related asset and associated cost of goods sold and inventory. However, the financial impact of these contracts is immaterial considering the very short production cycles and limited inventory days on hand, which is typical for the automotive industry. The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e. price concessions, annual price adjustments or payment to customers). Customers typically pay for the production parts based on customary business practices with payment terms averaging 30 days. Contract balances The contract assets relate to the Company’s rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. There have been no impairment losses recognized related to contract assets arising from the Company’s contracts with customers. Research, Development and Engineering (R,D&E) The Company performs research activities to identify new products, product development activities for further product evolution, and engineering activities to customize existing products for specific customers. Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of expense reimbursements from contracts to further customize existing products for specific customers. For the years ended December 31, 2021, 2020 and 2019 total cash reimbursements from customers were $136 million , $202 million and $103 million, respectively. Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer funded tooling are met or the criteria for capitalization as Property, Plant & Equipment for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Operations as Cost of Sales. Stock Based Compensation The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation-Stock Compensation . The Company records the compensation expense for its direct and allocated portion of awards under the Veoneer Stock Incentive Plan, including restricted stock units (RSUs), performance shares (PSs) and stock options (SOs), over the respective vesting period. For further details, see Note 19, Stock Incentive Plans. Income Taxes Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or refundable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws in effect for the year the differences are expected to reverse. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized and measured in the financial statements when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax benefits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized and measured if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents and short-term investments approximate their fair values based on Level 1 of the fair value hierarchy. Restricted Cash Restricted cash represents amounts designated for uses other than current operations. As of December 31, 2021 the Company has $1 million of Restricted cash related to cash collateral for other corporate purposes. There were no Restricted cash as of December 31, 2020. Receivables Accounts receivables are recorded at the invoiced amount and do not bear interest. The Company has evaluated the available adoption options of common credit loss methods that are acceptable as per FASB ASC 326, Credit Losses . The Company adopted the available Loss-rate method where the impairment is calculated using an estimated loss rate and multiplying it by the asset’s amortized cost at the balance sheet date. This method appropriately reflects the Company´s risk pattern in relation to its accounts receivables. The key components of the Company’s Loss-rate model are as follows: • A list of the Company's customers credit rating and credit default risk rate from Bloomberg. • Actual write-offs or reversals of previous write-offs of accounts receivables. • Evaluation of other unusual facts and circumstances which could impact the credit loss rate, such as risk of bankruptcy or potential collectability issues. The Company’s credit loss model includes the Company’s customer list. The customer list captures the existing customers. The list is put into a Bloomberg data query to generate customers short-term credit rating. The credit default risk rate is used to calculate the credit loss rate or estimated loss rate. For customers that do not have credit default risk rate, management uses the six-month LIBOR rate as a credit rating and a credit default risk rate. Management believes that the six-month LIBOR rate adequately reflects the short-term nature of the Company’s trade receivables and is also in line with the Company’s invoice payment terms. A substantial majority of the Company’s trade receivables are derived from sales to OEMs. The Company’s four largest customers accounted for 42% of net sales for 2021, 53% for 2020 and 59% for 2019. Additionally, as of December 31, 2021 and 2020, these four largest customers accounted for 28% a nd 40%, respectively, of the Company’s accounts receivables. 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. Derivative Instruments and Hedging Activities The Company uses derivative financial instruments, primarily forwards, options and swaps to reduce the effects of fluctuations in foreign exchange rates and the resulting variability of the Company’s operating results. On the date that a derivative contract is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge) or (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge). When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statements of Operations along with the offsetting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statements of Operations when the hedge transaction affects net earnings. The Company uses the forward rate with respect to the measurement of changes in fair value of cash flow hedges when revaluing foreign exchange forward contracts. All derivatives are recognized in the consolidated financial statements at fair value. For further details, see Note 9, Fair Value Measurements. Inventories The cost of inventories is computed according to the first-in, first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. Property, Plant and Equipment Property, Plant and Equipment are recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life or the lease term. Amortization on capital leases is recognized with depreciation expense in the Consolidated Statements of Operations over the shorter of the assets’ expected life or the lease contract term. Repairs and maintenance are expensed as incurred. Long-Lived Assets Impairment The Company evaluates the carrying value and useful lives of long-lived assets when indications of impairment are evident or it is likely that the useful lives have decreased, in which case the Company depreciates the assets over the remaining useful lives. Impairment testing is primarily performed by using the cash flow method based on undiscounted future cash flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the respective carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the carrying amounts of the long-lived asset are considered recoverable and an impairment is not recorded. However, if the carrying amount of a group of assets exceeds the undiscounted cash flows, an entity must then estimate, generally using a discounted cash flow model the long-lived assets’ fair value to determine whether an impairment loss should be recognized. Intangible Assets and Goodwill Intangible assets, principally related to acquired technology and contractual relationships, are amortized over their useful lives which range from 5 to 10 years. Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized but is subject to at least an annual review for impairment. The Company reviews goodwill for impairment annually in the fourth quarter or more frequently if events or changes in circumstances indicate the assets might be impaired. The impairment test was performed on October 31, 2021. In conducting its impairment testing, the Company compares the estimated fair value of each of its reporting units to the related carrying value of the reporting unit. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its estimated fair value, an impairment loss is recognized for the excess of carrying amount over the fair value of the respective reporting unit. Due to the pending merger agreement with Qualcomm and SSW, management performed a qualitative assessment, as permitted by Accounting Standards Update ("ASU") 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment to test goodwill for impairment in 2021. In performing the qualitative assessment, the Company assessed relevant factors to determine whether it was more likely than not that the fair value of the reporting unit was less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. These factors may include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as the pending merger agreement. The pending merger agreement was the predominant factor and allowed the Company to conclude that it was more likely than not that the fair value of the reporting unit exceeded its carrying value. Assets and liabilities held for sale The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the Consolidated Balance Sheets. Additionally, depreciation is not recorded during the period in which the long-lived assets, included in the disposal group, are classified as held for sale. Warranties and Recalls The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs typically include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the defective part. Insurance receivables, related to recall issues covered by the insurance, are included within other current assets in the Consolidated Balance Sheets. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. Pension and Other Post-Employment Benefits Veoneer’s employees participate in both defined contribution plans and defined benefit plans sponsored by Veoneer in Japan (the Japan plans), Canada (the Canada plans), and France (the France plans) and certain defined benefit plans sponsored by Autoliv in Sweden (the Sweden plans) and US (the US plans). A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefits that each employee will receive for services performed during a specified period of employment. For the Japan, Canada, and France plans, the amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any). The plan assets are measured at fair value. The inputs to the fair value measurement of the plan assets are mainly level 2 inputs (see Note 9, Fair Value Measurements). Veoneer has considered the remaining plans to be part of a multiemployer plan with Autoliv and does not record a corresponding asset or liability. Pension expense was allocated and reported within Costs of sales, Selling, general and administrative expenses and Research, development and engineering expenses in the Consolidated Statements of Operations. The expense related to Veoneer employees and allocated expenses are included in these Consolidated Financial Statements. Contingent Liabilities Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters. The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. The Company records liabilities for claims, lawsuits and proceedings when they are probable, and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. The Company believes, based on currently available information, that the resolution of outstanding matters, described in Note 17, Commitments and Contingencies, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. Translation of Non-US Subsidiaries The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. The statement of operations of these subsidiaries is translated into U.S. dollars using the average exchange rates for the year. Translation differences are reflected in equity as a component of OCI. Receivable and Liabilities in Non-Functional Currencies Receivables and liabilities not denominated in functional currencies are converted at year-end exchange rates. Net transaction gains/(losses) that are reflected in the Consolidated Statements of Operations amounted to $9 million , $(8) million and $2 million in 2021, 2020 and 2019, respectively. These are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other non-operating items, net if they relate to financial receivables and liabilities. Other Income, Net During 2020, Veoneer commenced arbitration against Nissin Kogyo regarding a dispute arising out of a Share Purchase Agreement (“SPA”) dated September 2015. On June 30, 2020, Veoneer agreed to settle the proceedings, along with any and all legal claims arising out of or relating to the SPA dispute, for $20 million. During 2020 the cash settlement was received by the Company and is reported among Other income, net in the Consolidated Statements of Operations. Recently Issued Accounting Pronouncements 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 num |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue The Company has attributed net sales to the geographic area based on the location of the entity selling the final product. Of the net sales, exports from the U.S. to other regions amounted to approximately $128 million, $140 million and $175 million in 2021, 2020 and 2019, respectively. In the following tables (dollars in millions), revenue is disaggregated by primary region and products of revenue recognition. Net Sales by Region Year Ended December 31 2021 2020 2019 Electronics Brake Total Electronics Brake Total Electronics Brake Total Asia $ 452 $ — $ 452 $ 322 $ 25 $ 347 $ 350 $ 312 $ 662 Americas 490 48 538 422 45 467 556 60 616 Europe 667 — 667 559 — 559 624 — 624 Total region sales 1,609 48 1,657 1,303 70 1,373 1,530 372 1,902 Total $ 1,609 $ 48 $ 1,657 $ 1,303 $ 70 $ 1,373 $ 1,530 $ 372 $ 1,902 Net Sales by Products Year Ended December 31 2021 2020 2019 Electronics Brake Total Electronics Brake Total Electronics Brake Total Restraint Control Systems $ 689 $ — $ 689 $ 670 $ — $ 670 $ 822 $ — $ 822 Active Safety products 869 — 869 624 — 624 708 — 708 Brake Systems — 48 48 — 70 70 — 372 372 Other 51 — 51 9 — 9 — — — Total product sales 1,609 48 $ 1,657 1,303 70 $ 1,373 1,530 372 1,902 Total net sales $ 1,609 $ 48 $ 1,657 $ 1,303 $ 70 $ 1,373 $ 1,530 $ 372 $ 1,902 The following tables provide information about receivables and contract assets from contracts with customers. Contract Balances with Customers As of December 31 2021 2020 Receivables, net $ 267 $ 292 Contract assets 1 6 6 1 Included in prepaid expenses and other contract assets in the Consolidated Balance Sheets Changes in the contract asset balances during the period are as follows: Change in Contract Balances with Customers 1 - Year Ended December 31 Contract assets 2021 2020 Beginning balance $ 6 $ 6 Increases due to revenue recognized 26 21 Decreases due to transfer to receivables (26) (21) Ending balance $ 6 $ 6 1 The contract asset is determined at each period end, this table reflects the rollforward of the period end balance. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases for offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment. The leases have remaining lease terms of 1 month to 24 years, some of which include options to extend the leases for up to 12 years, and some of which include options to terminate the leases within 1 month to 5 years. As of December 31, 2021 and 2020, assets recorded under finance leases included in Property, plant and equipment, net were $55 million and $52 million, respectively, and accumulated depreciation associated with finance leases was $10 million and $6 million as of December 31, 2021 and 2020, respectively. The Company has elected the practical expedient not to separate lease components from non-lease components for all its underlying assets. If the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate as the discount rate. The Company uses its best judgment when determining the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term to the lease payments in a similar currency. The components of lease expense were as follows: Year Ended December 31 (Dollars in millions) 2021 2020 Operating lease cost $ 24 $ 24 Finance lease cost Amortization of right-of-use assets 6 4 Interest on lease liabilities 2 2 Total finance lease cost 8 6 Short-term lease cost 1 1 Total lease cost $ 33 $ 31 Other information related to leases was as follows: Supplemental Cash Flows Information Year Ended December 31 (Dollars in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 23 $ 23 Operating cash flows used for finance leases 2 2 Financing cash flows used for finance leases 4 2 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 22 17 Finance leases 6 17 As of December 31 (Lease term in years and discount rate) 2021 2020 Weighted-average remaining lease term Operating Leases 6 7 Finance Leases 9 10 Weighted-average discount rate Operating leases 3.4 % 3.4 % Finance leases 4.88 % 4.95 % Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (Dollars in millions) Operating Leases Finance Leases 2022 $ 22 $ 9 2023 19 9 2024 12 10 2025 9 4 2026 7 4 Thereafter 22 27 Total lease payments 91 63 Less imputed interest 9 13 Total lease liabilities $ 82 $ 50 Lease obligations reported as of December 31, 2021 were as follows: (Dollars in millions) Operating Leases Finance Leases Other current liabilities $ 20 $ 7 Lease liabilities - non current 62 43 Total lease liabilities $ 82 $ 50 As of December 31, 2021, the Company has additional obligations of $16 million relating to leases, primarily for offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment, that have not yet commenced. These leases will commence in 2022 with lease terms of 1 year to 12 years. |
Leases | Leases The Company has operating and finance leases for offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment. The leases have remaining lease terms of 1 month to 24 years, some of which include options to extend the leases for up to 12 years, and some of which include options to terminate the leases within 1 month to 5 years. As of December 31, 2021 and 2020, assets recorded under finance leases included in Property, plant and equipment, net were $55 million and $52 million, respectively, and accumulated depreciation associated with finance leases was $10 million and $6 million as of December 31, 2021 and 2020, respectively. The Company has elected the practical expedient not to separate lease components from non-lease components for all its underlying assets. If the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate as the discount rate. The Company uses its best judgment when determining the incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term to the lease payments in a similar currency. The components of lease expense were as follows: Year Ended December 31 (Dollars in millions) 2021 2020 Operating lease cost $ 24 $ 24 Finance lease cost Amortization of right-of-use assets 6 4 Interest on lease liabilities 2 2 Total finance lease cost 8 6 Short-term lease cost 1 1 Total lease cost $ 33 $ 31 Other information related to leases was as follows: Supplemental Cash Flows Information Year Ended December 31 (Dollars in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 23 $ 23 Operating cash flows used for finance leases 2 2 Financing cash flows used for finance leases 4 2 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 22 17 Finance leases 6 17 As of December 31 (Lease term in years and discount rate) 2021 2020 Weighted-average remaining lease term Operating Leases 6 7 Finance Leases 9 10 Weighted-average discount rate Operating leases 3.4 % 3.4 % Finance leases 4.88 % 4.95 % Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (Dollars in millions) Operating Leases Finance Leases 2022 $ 22 $ 9 2023 19 9 2024 12 10 2025 9 4 2026 7 4 Thereafter 22 27 Total lease payments 91 63 Less imputed interest 9 13 Total lease liabilities $ 82 $ 50 Lease obligations reported as of December 31, 2021 were as follows: (Dollars in millions) Operating Leases Finance Leases Other current liabilities $ 20 $ 7 Lease liabilities - non current 62 43 Total lease liabilities $ 82 $ 50 As of December 31, 2021, the Company has additional obligations of $16 million relating to leases, primarily for offices, manufacturing and research buildings, machinery, automobiles, data processing and other equipment, that have not yet commenced. These leases will commence in 2022 with lease terms of 1 year to 12 years. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s short and long-term debt consists of the following: As of December 31 (Dollars in millions) 2021 2020 Short-Term Debt: Short-term borrowings $ 3 $ 4 Long-Term Debt: 4.00% Convertible Senior Notes due 2024 (Carrying value) 179 170 Other long-term borrowings 5 7 Total Debt $ 187 $ 181 Short-Term Debt: Short-term debt is included in Other current liabilities in the Consolidated Balance Sheet. Long-Term Debt: Other long-term borrowings Other long-term borrowings is included in Other non-current liabilities in the Consolidated Balance Sheet. 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 the 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 deliver 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 the 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 cash, shares or both 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 are 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 business day period after any ten consecutive trading day period (the “measurement period”) in which the "trading price" (as defined in the indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. 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 Consolidated and Balance Sheet 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 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 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 December 31 (Dollars in millions) 2021 2020 Principal amount (face value) $ 207 $ 207 Unamortized issuance cost (3) (4) Unamortized debt discount (25) (33) Net Carrying value $ 179 $ 170 The Company recognized total interest expense related to the Notes of approximately $18 million and $17 million for the year ended December 31, 2021 and 2020, respectively. |
Divestiture and Held for Sale
Divestiture and Held for Sale | 12 Months Ended |
Dec. 31, 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 to and approved a plan to sell VBS. The business and its associated assets and liabilities met the criteria for presentation as held for sale during 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 Gain on divestiture and assets impairment charges, net on the Consolidated Statements of Operations for the year ended December 31, 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 sale 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 third quarter 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. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 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 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 year ended December 31, 2021, the Company recorded restructuring expenses of $6 million reported in Other (expense) /income, net in the Consolidated Statements of Operations. The Company recorded zero in restructuring expenses for the year ended December 31, 2020 and 2019. The payback on such restructuring expenses is expected to be less than one year. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 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 consolidated financial statements prospectively from their date of acquisition. Zenuity, Inc and Zenuity GmbH Zenuity AB, a 50% ownership joint venture with 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 liabilities. The Company used discounted cash flow ("DCF") analyses, which represent Level 3 fair value measurement, 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 estimated fair values of identifiable acquired assets and assumed liabilities: (Dollars in millions) 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 Intellectual property In addition, the Company acquired the right to use VCC intellectual property in exchange for a payment of $10 million in a transaction outside of the business combination. The acquired intangible asset was assigned a useful life of 8 years and amortized over the useful life on a straight-line basis. Separately, the Company has licensed intellectual property for $10 million to VCC with zero cost base in a transaction outside of the business combination and recognized this amount as Other Income in the Consolidated Statements of Operations for the year ended December 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and 2020 were foreign exchange swaps and forward contracts. All swaps principally match the terms and maturity of the underlying obligation and no swaps have a maturity beyond six months. The forward contracts are designated as cash flow hedge of certain external purchases. All derivatives are recognized in the 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 because 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 Consolidated Balance Sheets have been presented on a gross basis. Derivative financial instruments designated and non-designated as hedging instruments are reported in Other non-current assets and liabilities in the Consolidated Balance Sheets. The nominal value of the derivatives not designated as hedging instruments was $300 million and $179 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the derivatives not designated as hedging instruments was an asset of $2 million and a liability of $1 million, respectively. Gains and losses on derivative financial instruments reported in Other non-operating items, net in the Consolidated Statements of Operations, were a gain of $3 million, a gain of less than $1 million and a loss of $1 million for the year ended December 31, 2021, 2020 and 2019, respectively. Items Measured at Fair Value on a Non-Recurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. The fair value measurements are generally determined using unobservable inputs and are classified within Level 3 of the fair value hierarchy. These assets include long-lived assets, intangible assets and investments in affiliates, which may be written down to fair value as a result of impairment. The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets. No such measurements were made in the current period. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Receivables | Receivables As of December 31 (Dollars in millions) 2021 2020 Receivables $ 269 $ 295 Allowance at beginning of year $ (3) $ (3) Current period provision for expected credit losses — (1) Reversal of allowance 1 — Write-off against allowance — 1 Allowance at end of year $ (2) $ (3) Total receivables, net of allowance $ 267 $ 292 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. As of December 31, 2021 and 2020, the Company had entered into arrangements with financial institutions and sold $276 million and $52 million, respectively, of factored trade receivables without recourse and $67 million and $25 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. As of December 31, 2021, the Company had $5 million of trade notes receivables which remain outstanding and will mature within the first quarter of 2022. The collections of such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. The fair value of the guaranteed notes receivables in China is determined based on Level 2 inputs including credit ratings and other criteria observable in the market. The fair value of these notes equal their carrying amounts of $5 million as of December 31, 2021. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of December 31 (Dollars in millions) 2021 2020 Raw material $ 165 $ 105 Work in progress 23 14 Finished products 53 51 Inventories $ 241 $ 170 Inventory reserve at beginning of year $ (36) $ (25) Addition to reserve (16) (11) Write-off against reserve — 1 Translation difference 3 (1) Inventory reserve at end of year $ (49) $ (36) Total inventories, net of reserve $ 192 $ 134 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses As of December 31 (Dollars in millions) 2021 2020 Operating related accruals $ 57 $ 70 Employee related accruals 94 102 Customer pricing accruals 8 20 Product related liabilities 1 28 19 Other accruals 22 21 Total Accrued Expenses $ 209 $ 232 1 As of December 31, 2021 and 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. |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment 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 more effectively drive their respective strategies. The parties entered into definitive agreements and effected the separation on July 1, 2020. 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) payable in ten annual installment payments, with the first payment due on July 1, 2021. As the transaction resulted in all of the business of Zenuity being transferred to one of its two owners, the Company determined that the remaining value of that equity investment was equal only to the expected future dividends to be received. This resulted in an impairment charge of approximately $24 million which was recorded within Gain on divestiture and assets impairment charges, net on the Consolidated Statements of Operations for the period ended December 31, 2020. 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 own 50% each of Zenuity AB. The joint venture was not dissolved as part of the transaction but continues as a holding company that owns the IP of Zenuity. During the year ended December 31, 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 year ended December 31, 2020, the Company received dividend of SEK 327 million (approximately $35 million) in cash (representing 50% of the total dividend, with the remainder received by VCC) from Zenuity. During the year ended December 31, 2020, prior to the transfer of Zenuity’s business to its two owners, Veoneer contributed SEK 240 million (approximately $25 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 investments 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 Fund I, L.P is similar to partnership interest. On June 30, 2017, Veoneer committed to make a $15 million investment in AutoTech Fund I, L.P. pursuant to a limited partnership agreement, and as a limited partner, will periodically make capital contributions toward this total commitment amount. As of December 31, 2021 and 2020, Veoneer has contributed a total of $13 million and $12 million, respectively, to the fund. As of December 31, 2021 the Company has received a distribution of $3 million from the fund. During 2021, the Company sold the AutoTech fund for $17 million and recognized a loss of $5 million reported in Gain/(loss) from equity method investment in the Consolidated Statements of Operations. The Company’s equity investment in Zenuity and AutoTech, recorded in Equity Method Investment on the consolidated balance sheets, totaled zero and $153 million as of December 31, 2021 and 2020, respectively, after consideration of foreign exchange movements. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of December 31 (Dollars in millions) 2021 2020 Estimated life Machinery and equipment 852 825 3-8 Buildings 130 134 20 Construction in progress 36 63 n/a Property, plant and equipment $ 1,018 $ 1,022 Less accumulated depreciation (649) (591) Net of accumulated depreciation $ 369 $ 431 Year Ended December 31 DEPRECIATION INCLUDED IN (Dollars in millions) 2021 2020 2019 Cost of sales $ 63 $ 54 $ 59 Selling, general and administrative expenses 5 4 4 Research, development and engineering expenses, net 39 39 32 Total $ 107 $ 97 $ 95 |
Other Comprehensive Loss
Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Other Comprehensive Loss | Other Comprehensive Loss Year Ended December 31 (Dollars in millions) 2021 2020 2019 Other Comprehensive (Loss) /Income 1 Cumulative translation adjustments $ (4) $ 15 $ (34) Pension liability, net of tax (4) (10) (10) Total ending balance $ (8) $ 5 $ (44) Deferred taxes on the pension liability 1 3 3 1 The components of Other Comprehensive Loss are net of any related income tax effects. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets as of December 31, 2021 and 2020 were as follows (dollars in millions): Electronics Segment Goodwill Carrying amount at January 1, 2020 $ 290 Acquisition 23 Translation differences 4 Carrying amount at December 31, 2020 317 Acquisition adjustment 2 Translation differences (3) Carrying amount at December 31, 2021 $ 316 As of December 31 Amortizable Intangible 2021 2020 Gross carrying amount $ 151 $ 145 Transfer — (3) Addition 1 11 Translation differences (2) 2 Accumulated amortization (137) (134) Carrying value $ 13 $ 21 As of December 31, 2021 and 2020, the carrying value of the amortizable intangible of $13 million and $21 million, respectively, was related to the technology asset category. The estimated weighted average useful life for these assets is 5.5 years . The Company recorded approximately $7 million , $6 million and $20 million of amortization expense related to definite-lived intangible assets for the years ended December 31, 2021, 2020 and 2019, respectively. The Company currently estimates future amortization expenses to b e $5 million for 2022, $2 million for 2023, $2 million for 2024, $1 million for 2025 and $1 million for 2026. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings Veoneer is subject to 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, with the exception of any potential losses resulting from the issue described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the Consolidated financial position of Veoneer, but the Company cannot provide assurance that Veoneer will not experience material litigation, product liability or other losses in the future. Product Warranty, Recalls and Intellectual Property Veoneer is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by the Company or expected by the customer. Accordingly, the future costs of warranty claims by the customers may be material. However, the Company believes its established reserves are adequate. Veoneer’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates. In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations. The Company carries insurance for potential recall and product liability claims at coverage levels based on the Company’s prior claims experience. Veoneer cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in the Company’s businesses, now or in the future, or that such coverage always will be available should the Company, now or in the future, wish to extend, increase or otherwise adjust the Company’s insurance. In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material. Product Related Liabilities The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. 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 Consolidated Balance Sheets. As of December 31 (Dollars in millions) 2021 2020 Reserve at beginning of the year $ 19 $ 15 Change in reserve 16 11 Cash settlements (6) (8) Translation difference (1) 1 Reserve at end of the year $ 28 $ 19 As of December 31, 2021 and 2020, provisions and cash paid primarily relate to warranty and recall related issues. The increase in the reserve balance as of December 31, 2021 compared to the prior year was mainly due to recalls of $10 million that are not subject to indemnification by Autoliv. Agreements entered into between Autoliv and Veoneer in connection with the Spin-Off provide for Autoliv to indemnify Veoneer for certain liabilities related to electronics products manufactured before April 1, 2018. As of December 31, 2021 and 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. Guarantees There were no guarantees as of December 31, 2021 and 2020. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Defined Benefit Pension Plans The defined benefit pension plans impacting the Veoneer financial results include the following: Existing Veoneer Plans which are comprised of plans in Japan, Canada, and France, Transferred Veoneer Plans which are comprised of plans in Germany, India, Japan, and South Korea, and Autoliv Sponsored Plans which are comprised of plans in Sweden and the U.S. For the years ended December 31, 2021, 2020 and 2019, the Company's total pension expense was $4 million for each period. Changes in Benefit Obligations and Plan Assets As of December 31 (Dollars in millions) 2021 2020 Benefit obligation at beginning of year $ 60 $ 54 Service cost 4 4 Interest cost 1 1 Actuarial gain (5) (7) Benefits paid (5) (3) Net of Held for sales add back/Divestiture — 7 Translation difference — 4 Benefit obligation at end of year $ 55 $ 60 Fair value of plan assets at beginning of year $ 40 $ 37 Actual return on plan assets 5 3 Company contributions 3 3 Benefits paid (5) (3) Net of Held for sales add back/Divestiture — (1) Translation difference (1) 1 Fair value of plan assets at year end $ 42 $ 40 Funded status recognized in the balance sheet $ (13) $ (20) Balance sheet classification Other non-current assets $ 3 $ — Pension liabilities (16) (20) Net amount recorded $ (13) $ (20) Components of Net Periodic Benefit Cost Associated with the Defined Benefit Retirement Plan Year Ended December 31 (Dollars in millions) 2021 2020 2019 Service cost $ 4 $ 4 $ 4 Interest cost 1 1 1 Expected return on plan assets (2) (2) (2) Amortization of actuarial loss 1 1 1 Net periodic benefit cost $ 4 $ 4 $ 4 The service cost and amortization of prior service cost components are reported among employee compensation costs in the 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 Consolidated Statements of Operations. The estimated prior service cost and net actuarial loss that will be amortized from other comprehensive income into net benefit cost over the next fiscal year is immaterial. The estimated net periodic benefit cost for 2022 is $3 million . Components of Accumulated other Comprehensive Income Before Tax As of December 31 (Dollars in millions) 2021 2020 Net actuarial loss $ 6 $ 15 Prior service cost 1 — Total accumulated other comprehensive loss recognized in the balance sheet $ 7 $ 15 Changes in Accumulated Other Comprehensive Income Before Tax As of December 31 (Dollars in millions) 2021 2020 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 15 $ 13 Held for sale — — Add back Held for sale — (2) Effect of plan combinations — 11 Net actuarial gain (7) (8) Amortization of actuarial loss (1) (1) Translation difference — 2 Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 7 $ 15 The accumulated benefit obligation for the Veoneer defined benefit pension plans as of December 31, 2021 and 2020 was $12 million and $54 million, respectively. Pension Plans for Which Accumulated Benefit Obligation (ABO) Exceeds the Fair Value of Plan Assets As of December 31 (Dollars in millions) 2021 2020 Projected Benefit Obligation (PBO) $ 16 $ 60 Accumulated Benefit Obligation $ 12 $ 54 Fair value of plan assets $ — $ 40 Veoneer, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected benefit obligation and annual net periodic benefit cost. Assumptions Used to Determine the Benefit Obligation As of December 31 2021 2020 Weighted average Discount rate 2.8 % 2.32 % Rate of increases in compensation level 3.3 % 3.3 % Assumptions Used to Determine the Net Periodic Benefit Cost for Years Ended December 31 Year Ended December 31 2021 2020 2019 Weighted average Discount rate 2.32 % 1.86 % 2.14 % Rate of increases in compensation level 3.28 % 4.33 % 4.39 % Expected long-term rate of return on assets 5.77 % 3.76 % 3.49 % The discount rates for the Veoneer plans have been set based on the rates of return on high-quality fixed-income investments currently available at the measurement date and expected to be available during the period the benefits will be paid. The expected timing of cash flows from the plan have also been considered in selecting the discount rate. In particular, the yields on corporate bonds rated AA or better on the measurement date have been used to set the discount rate. The expected rate of increase in compensation levels and long-term rate of return on plan assets are determined based on a number of factors and must take into account long-term expectations and reflect the financial environment in the respective local market. The expected return on assets for the Veoneer plans are based on the fair value of the assets as of December 31. The investment objectives for the Veoneer plans is to provide an attractive risk-adjusted return that will ensure the payment of benefits while protecting against the risk of substantial investment losses. Correlations among the asset classes are used to identify an asset mix that Veoneer believes will provide the most attractive returns. Long-term return forecasts for each asset class using historical data and other qualitative considerations to adjust for projected economic forecasts are used to set the expected rate of return for the entire portfolio. The Company made contributions to its pension plans of approximately $2 million and $2 million for the years ended December 31, 2021 and 2020, respectively. In addition, the Company expects to contribut e $3 million to its pension plans in 2022. Fair Value of Total Plan Assets As of December 31 ASSETS CATEGORY IN % WEIGHTED AVERAGE 2021 2020 Equity securities 64 % 65 % Debt instruments 21 % 22 % Other assets 15 % 13 % Total 100 % 100 % The following table summarizes the fair value of the defined benefit pension plan assets: As of December 31 (Dollars in millions) 2021 2020 Assets Equity U.S. Large Cap $ 7 $ 6 Non-U.S. Equity 20 20 Non-U.S. Bonds Corporate 2 4 Aggregate 7 5 Other Investments 6 5 Total $ 42 $ 40 The fair value measurement level within the fair value hierarchy (see Note 9, Fair Value Measurements) is based on the lowest level of any input that is significant to the fair value measurement. Plan assets are classified as Level 1 with exception of the Insurance Contracts which are classified as Level 2 in the table above. The estimated future benefit payments for the pension benefits reflect expected future service, as appropriate. The amount of benefit payments in a given year may vary from the projected amount, especially as certain plans include lump sum benefit payments, and the lump sum amounts may vary with market interest rates. Pension Benefits Expected Payments (Dollars in millions) Amount 2022 $ 2 2023 $ 3 2024 $ 3 2025 $ 3 2026 $ 3 Years 2027-2031 $ 19 Post-Retirement Benefits Other Than Pension Veoneer currently provides post-retirement health care and life insurance benefits to eligible Canadian employees. The plan is an unfunded plan with a benefit obligation of $4 million and $4 million as of December 31, 2021 and 2020, respectively. The net periodic benefit cost and impact on accumulated other comprehensive income related to the plan are immaterial. Defined contribution plans Veoneer recorded charges for contributions to the defined contribution plans o f |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plan | Stock Incentive Plan Veoneer maintains two Stock Incentive Plans. the Veoneer, Inc. 2018 Stock Incentive Plan (the “2018 Stock Incentive Plan”), which became effective on June 29, 2018 and the Veoneer, Inc. 2021 Stock Incentive Plan (the “2021 Stock Incentive Plan”), which became effective on May 10, 2021, to govern the Company’s stock-based awards that will be granted in the future. The2018 Stock Incentive Plan authorizes the grant of 3 million 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. Approximately 1 million shares were used for the conversion of the outstanding grants in the Spin-off. The 2021 Stock Incentive Plan authorizes the grant of 13 million shares of Veoneer common stock, plus any shares underlying awards outstanding under the 2018 Plan as of March 1, 2021 that are subsequently forfeited, for future equity awards to Veoneer employees and non-employee directors. 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 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 for the grants was 203,439 RSUs and 182,272 PSs at 100% target. During 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 during 2021 will vest on the third anniversary of the grant date, subject to the grantee’s continued employment or service 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 during 2021 was $14 million. Each RSU represents a promise to transfer a share of the Company’s common stock to the employee following completion of the vesting period, provided that the grantee remains employed through the vesting period, subject to certain limited exceptions. The PSs granted in 2019, 2020 and 2021 are comprised of three one-year performance periods with goals related to annual gross margin, with the number of shares ultimately earned subject to downward adjustment based on the Veoneer share price measured at the end of the three-year performance period (December 31, 2021, December 31, 2022, and December 31, 2023, respectively). The grantee may earn 0%-200% of the target number of PSs, subject to downward adjustment as described above, during the first quarter of 2022, 2023 and 2024, respectively, upon the Compensation Committee’s certification of achievement of the applicable performance goals. 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, PSs and SOs) compensation cost of $11 million, $6 million and $5 million, in the Consolidated Statements of Operations, for the years ended December 31, 2021, 2020 and 2019, respectively. Veoneer has unrecognized compensation cost for Veoneer employees of $6 million related to non-vested awards for RSUs and the weighted average period over which this cost is expected to be recognized is approximately 1.6 years. There was no compensation cost recognized for stock options during the years ended December 31, 2021, 2020 and 2019 because all outstanding stock options had vested prior to those periods. A summary of RSUs activity is presented below: Number of RSUs RSUs Outstanding as of December 31, 2020 1,010,894 Granted 240,280 Shares issued (371,541) Cancelled/Forfeited/Expired (317,678) Outstanding as of December 31, 2021 561,955 The weighted average fair value per share at the grant date for RSUs during the years ended December 31, 2021, 2020 and 2019 was $29.24, $10.86 and $26.19, respectively. The grant date fair value for RSUs vested in 2021 was $8 million. A summary of PSs activity is presented below: Number of PSs PSs Outstanding at December 31, 2020 490,444 Granted 182,272 Shares issued (38,771) Cancelled/Forfeited (209,794) Outstanding at December 31, 2021 424,151 The weighted average fair value per share at the grant date for PSs during the years ended December 31, 2021 and 2020 was $30.47 and $14.29, respectively. Number of Options SOs 1 Outstanding at December 31, 2020 232,026 Exercised (53,125) Cancelled/Forfeited/Expired (10,715) Outstanding as of December 31, 2021 168,186 1 SOs presented in this table represent Veoneer awards, including those held by Autoliv employees. The following summarizes information about stock options outstanding and exercisable as of December 31, 2021: Number Outstanding 1 Remaining Contract life (in years) EXERCISE PRICES $20.25 13,397 0.15 $20.91 23,781 1.14 $28.67 51,823 2.14 $34.25 79,185 3.13 168,186 2.31 1 SOs presented in this table represent Veoneer awards, including those held by Autoliv employees. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (Dollars in millions) Year Ended December 31 Loss before income taxes 2021 2020 2019 U.S. $ (212) $ (400) $ (230) Non-U.S. (157) (112) (291) Total $ (369) $ (512) $ (521) (Dollars in millions) Year Ended December 31 Provision for income taxes 2021 2020 2019 Current Non-U.S. $ 15 $ 31 $ 7 Deferred U.S. federal — — (9) State — — 2 Non-U.S. 1 1 1 Total income tax expense $ 16 $ 32 $ 1 (Dollars in millions) Year Ended December 31 Effective income tax rate 2021 2020 2019 U.S. federal income tax rate $ (78) $ (108) $ (109) Foreign tax rate variances 3 (1) (8) State taxes, net of federal benefit (3) (7) (6) Tax credits (3) (6) (7) Change in Valuation Allowances 89 113 120 Non-Controlling Interest — — 2 Earnings of equity investments — 14 15 Withholding taxes 7 3 4 Tax on divestiture — 23 — Convertible debt — — (10) Other, net 1 1 — Provision for income taxes $ 16 $ 32 $ 1 The 2020 income tax expense of $32 million includes a $23 million income tax expense on the gain from the sale of VNBS. The 2019 income tax expense of $1 million includes a $10 million income tax benefit related to domestic losses incurred during the year ended December 31, 2019. The deferred tax liability is a result of the issuance of the Convertible Senior Notes and recorded as a component of APIC is treated as a source of income in fiscal 2019 and a resulting benefit recorded in continuing operations. The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as follows: (Dollars in millions) As of December 31 Deferred taxes 2021 2020 Assets Provisions $ 41 $ 43 Intangibles assets 4 7 Tax receivables, principally net operating loss carryforward 342 262 Credits 14 14 Lease liabilities 26 29 Other 12 6 Deferred tax assets before allowances $ 439 $ 361 Valuation allowances (408) (323) Total $ 31 $ 38 Liabilities Property, plant and equipment (7) (5) Distribution taxes (3) (2) Convertible Senior Notes (6) (8) Operating lease right-of-use assets (25) (29) Total $ (41) $ (44) Net deferred tax liability $ (10) $ (6) 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. On December 31, 2021, the Company had net operating loss carryforwards (NOL’s) of $1,543 million, of which $1,405 million have no expiration date. The remaining losses expire on various dates through 2031. The Company also has $14 million of U.S. Research and Development Credit carry forwards, which expire on various dates through 2041. The Company assesses all available evidence, both positive and negative, to determine the amount of any required valuation allowance. Valuation allowances have been established for the Company’s US, Sweden, China, France and Japan operations. Such allowances are provided against each entity’s net deferred tax assets, primarily NOL’s, due to a history of cumulative losses or changes to projected future earnings which would support the recognition of the net deferred tax assets. The Company has recorded a deferred tax asset of $6 million and $6 million as of December 31, 2021 and 2020, respectively, and deferred tax liabilities of $16 million and $12 million as of December 31, 2021 and 2020, respectively, in the Consolidated Balance Sheets. The following table summarizes the activity related to the Company’s valuation allowances: (Dollars in millions) As of December 31 Valuation Allowances Against Deferred Tax Assets 2021 2020 Allowances at beginning of year $ 323 $ 179 Benefits reserved current year 95 133 Benefits recognized current year (1) — Translation difference (9) 11 Allowances at end of year $ 408 $ 323 The Company has reserves for income taxes that represent the Company’s best estimate of the potential liability for tax exposures. Inherent uncertainties exist in estimates of tax exposures due to changes in tax law, both legislated and concluded through the various jurisdictions’ court systems. The Company files tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. Taxing jurisdictions significant to Veoneer include Canada, China, France, Germany, India, Japan, South Korea, Sweden and the U.S. Open tax years related to these taxing jurisdictions remain subject to examination and could result in additional tax liabilities. In general, the Company’s affiliates are no longer subject to income tax examinations by foreign tax authorities for years before 2014. Since the Company’s operations were generally part of an existing Autoliv legal entity through April 1, 2018 or June 30, 2018 (depending on the jurisdiction), the existing Autoliv legal entity was the primary obligor and is responsible for handling any income tax audit and settling any audits with the taxing authority. For historic stand-alone Autoliv entities that were transferred to Veoneer, Autoliv had agreed to indemnify Veoneer for any taxes incurred for periods prior to April 1, 2018 subject to the terms of the Tax Matters Agreement. To the extent that the Company has accrued a liability for an uncertain tax position related to a period prior to the separation, such liabilities were settled with Former Parent on the last day the Company was part of the Former Parent’s group and were relieved through the Parent company investment. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in tax expense. As of December 31, 2021, the Company had recorded $7 million for unrecognized tax benefits. The total unrecognized tax benefits as of December 31, 2021 is classified as non-current tax payable included in Other Non-Current Liabilities in the Consolidated Balance Sheets. Approximately $2 million of these reserves would impact income tax expense if released into income. The Company does not expect a change to its unrecognized tax benefits in the next twelve months. The following table summarizes the activity related to the Company’s unrecognized tax benefits: (Dollars in millions) As of December 31 Unrecognized Tax Benefits 2021 2020 Unrecognized tax benefits at beginning of year $ 7 $ 4 Increases as a result of tax positions taken during the current period 1 3 Decreases as a result of tax positions taken during a prior period (1) — Total unrecognized tax benefits at end of year $ 7 $ 7 The Company's deferred tax liability for unremitted foreign earnings was $3 million as of December 31, 2021. The $3 million deferred tax liability represented our estimate of the foreign tax cost associated with our preliminary estimate of $59 million of foreign earnings that are not considered to be permanently reinvested. The Company has not provided for foreign withholding or income taxes on the remaining foreign subsidiaries’ undistributed earnings because such earnings have been retained and reinvested by the subsidiaries as of December 31, 2021. Accordingly, no provision has been made for foreign withholding or income taxes, which may become payable if the remaining undistributed earnings of foreign subsidiaries were paid to us as dividends. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share Basic earnings per share is computed by dividing net earnings for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net earnings 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 earnings per share by application of the treasury stock method. In periods when the Company has a net loss, equity incentive awards are excluded from the denominator in the Company's calculation of earnings per share as their inclusion would have an antidilutive effect. The following table sets forth the computation of basic and diluted loss per share for the years ended December 31, 2021, 2020 and 2019. (U.S. dollars in millions, except per share amounts) Year Ended December 31 2021 2020 2019 Numerator: Basic and diluted: Net loss attributable to common shareholders $ (385) $ (545) $ (500) Denominator: Basic: Weighted average number of shares outstanding (in millions) 111.88 111.56 101.62 Diluted: Weighted-average number of shares outstanding, assuming 111.88 111.56 101.62 Basic loss per share $ (3.44) $ (4.89) $ (4.92) Diluted loss per share $ (3.44) $ (4.89) $ (4.92) The table below shows equity incentive awards and convertible shares due to the Notes excluded from the diluted loss per share calculations because their effect would be antidilutive: (Share amounts) Year Ended December 31 2021 2020 2019 Equity incentive awards 719,178 817,733 287,326 Convertible shares due to the Notes 9,277,305 9,277,305 5,515,548 The Company may settle the conversions of the Notes in cash, shares of the Company's common stock or any combination thereof at its election. 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 5, Debt. Due to anti-dilutive effects, the Company excluded potential convertible shares due to the Notes from the diluted loss per share calculations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Financial results for the Company's reportable segments 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 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. Electronics includes all of electronics resources and expertise in passive safety electronics and active safety. The operating results of the operating segments are regularly reviewed by the Company’s CODM, the Chief Executive Officer, to assess the performance of the individual operating segments and make decisions about resources to be allocated to the operating segments. The accounting policies for the reportable segments are the same as those described in the Note 2, Summary of Significant Accounting Policies to the consolidated financial statements. Brake Systems ceased to be a reportable segment upon disposal in the quarter ended September 30, 2020 and historical information from prior to the disposal date is reported here. Key financial measures reviewed by the Company’s CODM are as follows: (Dollars in millions) Year Ended December 31 Loss Before Income Taxes 2021 2020 2019 Electronics $ (286) $ (268) $ (324) Brake Systems — (37) (64) Segment operating loss (286) (305) (388) Corporate and other (71) (62) (72) Gain on divestiture and assets impairment charge, net — (91) — Interest and other non-operating items, net (18) (15) 9 (Gain) /loss from equity method investment 6 (39) (70) Loss before income taxes $ (369) $ (512) $ (521) (Dollars in millions) Year Ended December 31 Capital Expenditures 2021 2020 2019 Electronics $ 60 $ 79 $ 153 Brake Systems — 12 60 Total capital expenditures $ 60 $ 91 $ 213 (Dollars in millions) Year Ended December 31 Depreciation and Amortization 2021 2020 2019 Electronics $ 114 $ 101 $ 83 Brake Systems — 2 32 Total depreciation and amortization $ 114 $ 103 $ 115 (Dollars in millions) As of December 31 Segment Assets 2021 2020 Electronics $ 1,853 $ 2,391 Brake Systems — — Intersegment assets (103) (103) Total assets $ 1,750 $ 2,288 The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers. Sales to individual customers representing 10% or more of net sales were: In 2021: Customer A 19% In 2020: Customer A 20%, Customer B 12%, Customer C 11% and Customer D 11% In 2019: Customer A 23%, Customer B 16% and Customer C 11% and Customer D 10% (Dollars in millions) As of December 31 Long-lived Assets 2021 2020 Asia $ 99 $ 125 Americas 262 294 Europe 449 625 Total $ 810 $ 1,044 Long-lived assets in the U.S. amounted to $192 million and $215 million for 2021 and 2020, respectively. For 2021 and 2020 $127 million and $128 million, respectively, of the long-lived assets in the U.S. refer to intangible assets, principally from acquisition goodwill. |
Relationship with Former Parent
Relationship with Former Parent and Related Entities | 12 Months Ended |
Dec. 31, 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 a Transition Services Agreement (TSA) under which certain services are provided by Autoliv to Veoneer and certain services are provided by Veoneer to Autoliv. The TSA expired by its terms on March 31, 2020 and was extended by mutual consent for one month. Upon expiration of the TSA, Veoneer and Autoliv finalized ongoing agreements to extend a very limited set of services to facilitate ongoing business. For the years ended December 31, 2021, 2020 and 2019, Veoneer recognized less than $1 million, $1 million and $5 million, respectively, of expenses under the TSA. Throughout the periods covered by the consolidated financial statements, Veoneer sold finished goods to Autoliv and Nissin Kogyo, the 49% owner in VNBS (a 51% owned subsidiary). Related party sales during the years ended December 31, 2021, 2020 and 2019 amounted to $70 million, $70 million and $101 million, respectively. Related party purchases of component products during the years ended December 31, 2021, 2020 and 2019 amounted to zero, $1 million and $16 million, respectively. Furthermore, engineering services relating to passive safety electronics have been rendered to Autoliv amounting to less than $1 million for year ended December 31, 2021 and $1 million for both years ended December 31, 2020 and 2019, and engineering services relating to passive safety electronics received from Autoliv amounting to $1 million, $2 million and $2 million the years ended December 31, 2021, 2020 and 2019, respectively. Related Party Balances Amounts due to and due from related party components as summarized in the below table: (Dollars in millions) As of December 31 RELATED PARTY 2021 2020 Related party receivable $ 6 $ 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 will collect the customer payments and will remit the payments to Veoneer. As of December 31, 2020, Related party short-term and long-term debt mainly related to Zenuity's intellectual property that Veoneer acquired the right to use for a total consideration of approximately $114 million payable in ten annual installment payments. During 2021, the Company settled the payable amount with Zenuity. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Segment Reporting | 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. |
Basis of Accounting | Certain amounts in the consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP) and include the consolidated assets, liabilities, sales, and expenses of the Veoneer business as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020, and 2019. All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements. See Note 23, Relationship with Former Parent and Related Entities, for a further description of related party transactions between Autoliv and Veoneer. The consolidated financial statements include the accounts of the Company and its subsidiaries that are more than 50% owned and over which the Company exercises control. Investments in affiliates of greater than 20% and for which the Company does not exercise control, but does have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. All other equity investments are measured at cost, less impairment, with changes in fair value recognized in net income. Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant to the VIE. |
Business Combinations | Business Combinations Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805 , Business Combinations . The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid is re-measured on a recurring basis. It is classified as a liability in the consolidated balance sheet. |
Equity Method Investments | Equity Method Investments Investments accounted for under the equity method, means that a proportional share of the equity method investment’s net income increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of Operations, the proportional share of the net loss is reported as Gain (loss) from equity method investments. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting estimates that require management’s most significant judgments include the estimation of retroactive price adjustments, estimations associated with purchase price allocations regarding business combinations, valuation of stock based payments, assessment of recoverability of goodwill and intangible assets, assessment of the useful lives of intangible assets, estimation of pension benefit expense based on actuarial assumptions, estimation of accruals for warranty and product liabilities, uncertain tax positions, valuation allowances and contingent liabilities. However, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers , revenue is measured based on consideration specified in a contract with a customer, adjusted for any variable consideration (i.e. price concessions or annual price adjustments) as estimated at contract inception. The variable consideration calculation involves management assumptions including the volume of light vehicle production, sales volumes for specific parts, or price concessions to be granted. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. In addition, from time to time, Veoneer may make payments to customers in connection with ongoing and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments, unless certain criteria are met, warranting capitalization. If the payments are capitalized, the amounts are recognized as a reduction of the transaction price as the related goods are transferred. As of December 31, 2021 and 2020, the Company had no outstanding obligations to make payments to customers in connection with ongoing and future business. The Company assesses these amounts for impairment. During 2020 Assets Held for Sale were impaired as part of the evaluation of the value less costs to sell of that asset group. See Note 6 Divestiture for additional information. No impairment was recorded in 2021 or 2019. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. Nature of goods and services The following is a description of principal activities from which the Company generates its revenue. The Company previously had two operating segments, Electronics includes all electronics resources and expertise, Restraint Control Systems and Active Safety products, and Brake Systems provided brake control and actuation systems. Both of the segments generate revenue from the sale of production parts to original equipment manufacturers (“OEMs”). The remaining Brake Systems business is no longer a reportable segment due to immateriality. The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any price concession or annual price adjustments, is based on stand-alone selling prices for each of the products. The Company recognizes revenue for production parts primarily at a point in time. For production parts with revenue recognized at a point in time, the Company recognizes revenue upon transfer of control, which generally occurs upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically F.O.B. shipping point). There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and a related asset and associated cost of goods sold and inventory. However, the financial impact of these contracts is immaterial considering the very short production cycles and limited inventory days on hand, which is typical for the automotive industry. The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e. price concessions, annual price adjustments or payment to customers). Customers typically pay for the production parts based on customary business practices with payment terms averaging 30 days. Contract balances The contract assets relate to the Company’s rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. There have been no impairment losses recognized related to contract assets arising from the Company’s contracts with customers. |
Research, Development and Engineering (R,D&E) | Research, Development and Engineering (R,D&E) The Company performs research activities to identify new products, product development activities for further product evolution, and engineering activities to customize existing products for specific customers. Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of expense reimbursements from contracts to further customize existing products for specific customers. For the years ended December 31, 2021, 2020 and 2019 total cash reimbursements from customers were $136 million , $202 million and $103 million, respectively. Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project. Capitalization of tooling costs is made only when the specific criteria for capitalization of customer funded tooling are met or the criteria for capitalization as Property, Plant & Equipment for tools owned by the Company are fulfilled. Depreciation on the Company’s own tooling is recognized in the Consolidated Statements of Operations as Cost of Sales. |
Stock Based Compensation | Stock Based Compensation The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as defined in ASC 718, Compensation-Stock Compensation . The Company records the compensation expense for its direct and allocated portion of awards under the Veoneer Stock Incentive Plan, including restricted stock units (RSUs), performance shares (PSs) and stock options (SOs), over the respective vesting period. For further details, see Note 19, Stock Incentive Plans. |
Income Taxes | Income Taxes Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-current taxes payable or refundable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws in effect for the year the differences are expected to reverse. Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration of all facts and circumstances. Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized and measured in the financial statements when it is more likely than not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax benefits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation, appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently recognized and measured if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion, the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12 months. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents and short-term investments approximate their fair values based on Level 1 of the fair value hierarchy. Restricted Cash Restricted cash represents amounts designated for uses other than current operations. As of December 31, 2021 the Company has $1 million of Restricted cash related to cash collateral for other corporate purposes. There were no Restricted cash as of December 31, 2020. |
Receivables | Receivables Accounts receivables are recorded at the invoiced amount and do not bear interest. The Company has evaluated the available adoption options of common credit loss methods that are acceptable as per FASB ASC 326, Credit Losses . The Company adopted the available Loss-rate method where the impairment is calculated using an estimated loss rate and multiplying it by the asset’s amortized cost at the balance sheet date. This method appropriately reflects the Company´s risk pattern in relation to its accounts receivables. The key components of the Company’s Loss-rate model are as follows: • A list of the Company's customers credit rating and credit default risk rate from Bloomberg. • Actual write-offs or reversals of previous write-offs of accounts receivables. • Evaluation of other unusual facts and circumstances which could impact the credit loss rate, such as risk of bankruptcy or potential collectability issues. The Company’s credit loss model includes the Company’s customer list. The customer list captures the existing customers. The list is put into a Bloomberg data query to generate customers short-term credit rating. The credit default risk rate is used to calculate the credit loss rate or estimated loss rate. For customers that do not have credit default risk rate, management uses the six-month LIBOR rate as a credit rating and a credit default risk rate. Management believes that the six-month LIBOR rate adequately reflects the short-term nature of the Company’s trade receivables and is also in line with the Company’s invoice payment terms. |
Concentration and Credit Risk | 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. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company uses derivative financial instruments, primarily forwards, options and swaps to reduce the effects of fluctuations in foreign exchange rates and the resulting variability of the Company’s operating results. On the date that a derivative contract is entered into, the Company designates the derivative as either (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge) or (2) a hedge of the exposure of a forecasted transaction or of the variability in the cash flows of a recognized asset or liability (a cash flow hedge). When a hedge is classified as a fair value hedge, the change in the fair value of the hedge is recognized in the Consolidated Statements of Operations along with the offsetting change in the fair value of the hedged item. When a hedge is classified as a cash flow hedge, any change in the fair value of the hedge is initially recorded in equity as a component of Other Comprehensive Income (OCI) and reclassified into the Consolidated Statements of Operations when the hedge transaction |
Inventories | Inventories The cost of inventories is computed according to the first-in, first-out method (FIFO). Cost includes the cost of materials, direct labor and the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value of inventories to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. |
Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment are recorded at historical cost. Construction in progress generally involves short-term projects for which capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the straight-line method over the assets’ estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life or the lease term. Amortization on capital leases is recognized with depreciation expense in the Consolidated Statements of Operations over the shorter of the assets’ expected life or the lease contract term. Repairs and maintenance are expensed as incurred. |
Long-Lived Assets Impairment | Long-Lived Assets Impairment The Company evaluates the carrying value and useful lives of long-lived assets when indications of impairment are evident or it is likely that the useful lives have decreased, in which case the Company depreciates the assets over the remaining useful lives. Impairment testing is primarily performed by using the cash flow method based on undiscounted future cash flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the respective carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the carrying amounts of the long-lived asset are considered recoverable and an impairment is not recorded. However, if the carrying amount of a group of assets exceeds the undiscounted cash flows, an entity must then estimate, generally using a discounted cash flow model the long-lived assets’ fair value to determine whether an impairment loss should be recognized. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets, principally related to acquired technology and contractual relationships, are amortized over their useful lives which range from 5 to 10 years. Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired. Goodwill is not amortized but is subject to at least an annual review for impairment. The Company reviews goodwill for impairment annually in the fourth quarter or more frequently if events or changes in circumstances indicate the assets might be impaired. The impairment test was performed on October 31, 2021. In conducting its impairment testing, the Company compares the estimated fair value of each of its reporting units to the related carrying value of the reporting unit. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its estimated fair value, an impairment loss is recognized for the excess of carrying amount over the fair value of the respective reporting unit. Due to the pending merger agreement with Qualcomm and SSW, management performed a qualitative assessment, as permitted by Accounting Standards Update ("ASU") 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment to test goodwill for impairment in 2021. In performing the qualitative assessment, the Company assessed relevant factors to determine whether it was more likely than not that the fair value of the reporting unit was less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. These factors may include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, |
Assets and Liabilities Held for Sale | Assets and liabilities held for sale The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the Consolidated Balance Sheets. Additionally, depreciation is not recorded during the period in which the long-lived assets, included in the disposal group, are classified as held for sale. |
Warranties and Recalls | Warranties and Recalls The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern. Product recall costs typically include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the defective part. Insurance receivables, related to recall issues covered by the insurance, are included within other current assets in the Consolidated Balance Sheets. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis. |
Pension and Other Post-Employment Benefits | Pension and Other Post-Employment Benefits Veoneer’s employees participate in both defined contribution plans and defined benefit plans sponsored by Veoneer in Japan (the Japan plans), Canada (the Canada plans), and France (the France plans) and certain defined benefit plans sponsored by Autoliv in Sweden (the Sweden plans) and US (the US plans). A defined contribution plan generally specifies the periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine the amount of pension benefits that each employee will receive for services performed during a specified period of employment. For the Japan, Canada, and France plans, the amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan assets (if any). The plan assets are measured at fair value. The inputs to the fair value measurement of the plan assets are mainly level 2 inputs (see Note 9, Fair Value Measurements). Veoneer has considered the remaining plans to be part of a multiemployer plan with Autoliv and does not record a corresponding asset or liability. Pension expense was allocated and reported within Costs of sales, Selling, general and administrative expenses and Research, development and engineering expenses in the Consolidated Statements of Operations. The expense related to Veoneer employees and allocated expenses are included in these Consolidated Financial Statements. |
Contingent Liabilities | Contingent Liabilities Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters. The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against insurable risks. The Company records liabilities for claims, lawsuits and proceedings when they are probable, and it is possible to reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are incurred. The Company believes, based on currently available information, that the resolution of outstanding matters, described in Note 17, Commitments and Contingencies, after taking into account recorded liabilities and available insurance coverage, should not have a material effect on the Company’s financial position or results of operations. However, due to the inherent uncertainty associated with such matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated. |
Translation of Non-US Subsidiaries and Receivable and Liabilities in Non-Functional Currencies | Translation of Non-US Subsidiaries The balance sheets of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. The statement of operations of these subsidiaries is translated into U.S. dollars using the average exchange rates for the year. Translation differences are reflected in equity as a component of OCI. Receivable and Liabilities in Non-Functional Currencies |
Recently Issued Accounting Pronouncements | 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 Measurement | 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. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregated By Primary Region And Products Of Revenue Recognition | In the following tables (dollars in millions), revenue is disaggregated by primary region and products of revenue recognition. Net Sales by Region Year Ended December 31 2021 2020 2019 Electronics Brake Total Electronics Brake Total Electronics Brake Total Asia $ 452 $ — $ 452 $ 322 $ 25 $ 347 $ 350 $ 312 $ 662 Americas 490 48 538 422 45 467 556 60 616 Europe 667 — 667 559 — 559 624 — 624 Total region sales 1,609 48 1,657 1,303 70 1,373 1,530 372 1,902 Total $ 1,609 $ 48 $ 1,657 $ 1,303 $ 70 $ 1,373 $ 1,530 $ 372 $ 1,902 Net Sales by Products Year Ended December 31 2021 2020 2019 Electronics Brake Total Electronics Brake Total Electronics Brake Total Restraint Control Systems $ 689 $ — $ 689 $ 670 $ — $ 670 $ 822 $ — $ 822 Active Safety products 869 — 869 624 — 624 708 — 708 Brake Systems — 48 48 — 70 70 — 372 372 Other 51 — 51 9 — 9 — — — Total product sales 1,609 48 $ 1,657 1,303 70 $ 1,373 1,530 372 1,902 Total net sales $ 1,609 $ 48 $ 1,657 $ 1,303 $ 70 $ 1,373 $ 1,530 $ 372 $ 1,902 |
Summary Of Information About Contract Assets From Contracts With Customers | The following tables provide information about receivables and contract assets from contracts with customers. Contract Balances with Customers As of December 31 2021 2020 Receivables, net $ 267 $ 292 Contract assets 1 6 6 1 Included in prepaid expenses and other contract assets in the Consolidated Balance Sheets |
Summary If Changes In Contract Assets | Changes in the contract asset balances during the period are as follows: Change in Contract Balances with Customers 1 - Year Ended December 31 Contract assets 2021 2020 Beginning balance $ 6 $ 6 Increases due to revenue recognized 26 21 Decreases due to transfer to receivables (26) (21) Ending balance $ 6 $ 6 1 The contract asset is determined at each period end, this table reflects the rollforward of the period end balance. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows: Year Ended December 31 (Dollars in millions) 2021 2020 Operating lease cost $ 24 $ 24 Finance lease cost Amortization of right-of-use assets 6 4 Interest on lease liabilities 2 2 Total finance lease cost 8 6 Short-term lease cost 1 1 Total lease cost $ 33 $ 31 Other information related to leases was as follows: Supplemental Cash Flows Information Year Ended December 31 (Dollars in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 23 $ 23 Operating cash flows used for finance leases 2 2 Financing cash flows used for finance leases 4 2 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 22 17 Finance leases 6 17 As of December 31 (Lease term in years and discount rate) 2021 2020 Weighted-average remaining lease term Operating Leases 6 7 Finance Leases 9 10 Weighted-average discount rate Operating leases 3.4 % 3.4 % Finance leases 4.88 % 4.95 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (Dollars in millions) Operating Leases Finance Leases 2022 $ 22 $ 9 2023 19 9 2024 12 10 2025 9 4 2026 7 4 Thereafter 22 27 Total lease payments 91 63 Less imputed interest 9 13 Total lease liabilities $ 82 $ 50 |
Finance Lease, Liability, Maturity | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: (Dollars in millions) Operating Leases Finance Leases 2022 $ 22 $ 9 2023 19 9 2024 12 10 2025 9 4 2026 7 4 Thereafter 22 27 Total lease payments 91 63 Less imputed interest 9 13 Total lease liabilities $ 82 $ 50 |
Lessee, Lease, Components of Financial Position | Lease obligations reported as of December 31, 2021 were as follows: (Dollars in millions) Operating Leases Finance Leases Other current liabilities $ 20 $ 7 Lease liabilities - non current 62 43 Total lease liabilities $ 82 $ 50 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s short and long-term debt consists of the following: As of December 31 (Dollars in millions) 2021 2020 Short-Term Debt: Short-term borrowings $ 3 $ 4 Long-Term Debt: 4.00% Convertible Senior Notes due 2024 (Carrying value) 179 170 Other long-term borrowings 5 7 Total Debt $ 187 $ 181 The following table presents the outstanding principal amount and carrying value of the Notes: 4.00% Convertible Senior Notes due 2024 As of December 31 (Dollars in millions) 2021 2020 Principal amount (face value) $ 207 $ 207 Unamortized issuance cost (3) (4) Unamortized debt discount (25) (33) Net Carrying value $ 179 $ 170 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the estimated fair values of identifiable acquired assets and assumed liabilities: (Dollars in millions) 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 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of December 31 (Dollars in millions) 2021 2020 Receivables $ 269 $ 295 Allowance at beginning of year $ (3) $ (3) Current period provision for expected credit losses — (1) Reversal of allowance 1 — Write-off against allowance — 1 Allowance at end of year $ (2) $ (3) Total receivables, net of allowance $ 267 $ 292 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | As of December 31 (Dollars in millions) 2021 2020 Raw material $ 165 $ 105 Work in progress 23 14 Finished products 53 51 Inventories $ 241 $ 170 Inventory reserve at beginning of year $ (36) $ (25) Addition to reserve (16) (11) Write-off against reserve — 1 Translation difference 3 (1) Inventory reserve at end of year $ (49) $ (36) Total inventories, net of reserve $ 192 $ 134 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Summary Of Accrued Expenses | As of December 31 (Dollars in millions) 2021 2020 Operating related accruals $ 57 $ 70 Employee related accruals 94 102 Customer pricing accruals 8 20 Product related liabilities 1 28 19 Other accruals 22 21 Total Accrued Expenses $ 209 $ 232 1 As of December 31, 2021 and 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. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of December 31 (Dollars in millions) 2021 2020 Estimated life Machinery and equipment 852 825 3-8 Buildings 130 134 20 Construction in progress 36 63 n/a Property, plant and equipment $ 1,018 $ 1,022 Less accumulated depreciation (649) (591) Net of accumulated depreciation $ 369 $ 431 Year Ended December 31 DEPRECIATION INCLUDED IN (Dollars in millions) 2021 2020 2019 Cost of sales $ 63 $ 54 $ 59 Selling, general and administrative expenses 5 4 4 Research, development and engineering expenses, net 39 39 32 Total $ 107 $ 97 $ 95 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | Year Ended December 31 (Dollars in millions) 2021 2020 2019 Other Comprehensive (Loss) /Income 1 Cumulative translation adjustments $ (4) $ 15 $ (34) Pension liability, net of tax (4) (10) (10) Total ending balance $ (8) $ 5 $ (44) Deferred taxes on the pension liability 1 3 3 1 The components of Other Comprehensive Loss are net of any related income tax effects. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Intangible assets as of December 31, 2021 and 2020 were as follows (dollars in millions): Electronics Segment Goodwill Carrying amount at January 1, 2020 $ 290 Acquisition 23 Translation differences 4 Carrying amount at December 31, 2020 317 Acquisition adjustment 2 Translation differences (3) Carrying amount at December 31, 2021 $ 316 |
Schedule of Finite-Lived Intangible Assets | As of December 31 Amortizable Intangible 2021 2020 Gross carrying amount $ 151 $ 145 Transfer — (3) Addition 1 11 Translation differences (2) 2 Accumulated amortization (137) (134) Carrying value $ 13 $ 21 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Change in Product Related Liabilities | The table below summarizes the change in product related liabilities in the Consolidated Balance Sheets. As of December 31 (Dollars in millions) 2021 2020 Reserve at beginning of the year $ 19 $ 15 Change in reserve 16 11 Cash settlements (6) (8) Translation difference (1) 1 Reserve at end of the year $ 28 $ 19 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Changes In Projected Benefit Obligation, Fair Value of Plan Assets And Funded Status Of Plan | Changes in Benefit Obligations and Plan Assets As of December 31 (Dollars in millions) 2021 2020 Benefit obligation at beginning of year $ 60 $ 54 Service cost 4 4 Interest cost 1 1 Actuarial gain (5) (7) Benefits paid (5) (3) Net of Held for sales add back/Divestiture — 7 Translation difference — 4 Benefit obligation at end of year $ 55 $ 60 Fair value of plan assets at beginning of year $ 40 $ 37 Actual return on plan assets 5 3 Company contributions 3 3 Benefits paid (5) (3) Net of Held for sales add back/Divestiture — (1) Translation difference (1) 1 Fair value of plan assets at year end $ 42 $ 40 Funded status recognized in the balance sheet $ (13) $ (20) Balance sheet classification Other non-current assets $ 3 $ — Pension liabilities (16) (20) Net amount recorded $ (13) $ (20) |
Schedule of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Associated with the Defined Benefit Retirement Plan Year Ended December 31 (Dollars in millions) 2021 2020 2019 Service cost $ 4 $ 4 $ 4 Interest cost 1 1 1 Expected return on plan assets (2) (2) (2) Amortization of actuarial loss 1 1 1 Net periodic benefit cost $ 4 $ 4 $ 4 |
Schedule of Amounts Recognized In Other Comprehensive Income (Loss) | Components of Accumulated other Comprehensive Income Before Tax As of December 31 (Dollars in millions) 2021 2020 Net actuarial loss $ 6 $ 15 Prior service cost 1 — Total accumulated other comprehensive loss recognized in the balance sheet $ 7 $ 15 Changes in Accumulated Other Comprehensive Income Before Tax As of December 31 (Dollars in millions) 2021 2020 Total retirement benefit recognized in accumulated other comprehensive income at beginning of year $ 15 $ 13 Held for sale — — Add back Held for sale — (2) Effect of plan combinations — 11 Net actuarial gain (7) (8) Amortization of actuarial loss (1) (1) Translation difference — 2 Total retirement benefit recognized in accumulated other comprehensive income at end of year $ 7 $ 15 |
Schedule of Accumulated And Projected Benefit Obligations In Excess Of Fair Value | Pension Plans for Which Accumulated Benefit Obligation (ABO) Exceeds the Fair Value of Plan Assets As of December 31 (Dollars in millions) 2021 2020 Projected Benefit Obligation (PBO) $ 16 $ 60 Accumulated Benefit Obligation $ 12 $ 54 Fair value of plan assets $ — $ 40 |
Schedule of Assumptions Used | Assumptions Used to Determine the Benefit Obligation As of December 31 2021 2020 Weighted average Discount rate 2.8 % 2.32 % Rate of increases in compensation level 3.3 % 3.3 % Assumptions Used to Determine the Net Periodic Benefit Cost for Years Ended December 31 Year Ended December 31 2021 2020 2019 Weighted average Discount rate 2.32 % 1.86 % 2.14 % Rate of increases in compensation level 3.28 % 4.33 % 4.39 % Expected long-term rate of return on assets 5.77 % 3.76 % 3.49 % |
Schedule of Allocation Of Plan Assets | Fair Value of Total Plan Assets As of December 31 ASSETS CATEGORY IN % WEIGHTED AVERAGE 2021 2020 Equity securities 64 % 65 % Debt instruments 21 % 22 % Other assets 15 % 13 % Total 100 % 100 % The following table summarizes the fair value of the defined benefit pension plan assets: As of December 31 (Dollars in millions) 2021 2020 Assets Equity U.S. Large Cap $ 7 $ 6 Non-U.S. Equity 20 20 Non-U.S. Bonds Corporate 2 4 Aggregate 7 5 Other Investments 6 5 Total $ 42 $ 40 |
Schedule of Expected Benefit Payments | Pension Benefits Expected Payments (Dollars in millions) Amount 2022 $ 2 2023 $ 3 2024 $ 3 2025 $ 3 2026 $ 3 Years 2027-2031 $ 19 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
A Summary of Restricted Share Activity | A summary of RSUs activity is presented below: Number of RSUs RSUs Outstanding as of December 31, 2020 1,010,894 Granted 240,280 Shares issued (371,541) Cancelled/Forfeited/Expired (317,678) Outstanding as of December 31, 2021 561,955 |
Schedule of Nonvested Performance-based Units Activity | A summary of PSs activity is presented below: Number of PSs PSs Outstanding at December 31, 2020 490,444 Granted 182,272 Shares issued (38,771) Cancelled/Forfeited (209,794) Outstanding at December 31, 2021 424,151 |
A Summary of Stock Option Activity | Number of Options SOs 1 Outstanding at December 31, 2020 232,026 Exercised (53,125) Cancelled/Forfeited/Expired (10,715) Outstanding as of December 31, 2021 168,186 1 SOs presented in this table represent Veoneer awards, including those held by Autoliv employees. |
Summarizes Information About Stock Options Outstanding And Exercisable | The following summarizes information about stock options outstanding and exercisable as of December 31, 2021: Number Outstanding 1 Remaining Contract life (in years) EXERCISE PRICES $20.25 13,397 0.15 $20.91 23,781 1.14 $28.67 51,823 2.14 $34.25 79,185 3.13 168,186 2.31 1 SOs presented in this table represent Veoneer awards, including those held by Autoliv employees. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Tax | (Dollars in millions) Year Ended December 31 Loss before income taxes 2021 2020 2019 U.S. $ (212) $ (400) $ (230) Non-U.S. (157) (112) (291) Total $ (369) $ (512) $ (521) |
Schedule of Components Of Income Tax Expense (Benefit) | (Dollars in millions) Year Ended December 31 Provision for income taxes 2021 2020 2019 Current Non-U.S. $ 15 $ 31 $ 7 Deferred U.S. federal — — (9) State — — 2 Non-U.S. 1 1 1 Total income tax expense $ 16 $ 32 $ 1 |
Schedule of Effective Income Tax Rate Reconciliation | (Dollars in millions) Year Ended December 31 Effective income tax rate 2021 2020 2019 U.S. federal income tax rate $ (78) $ (108) $ (109) Foreign tax rate variances 3 (1) (8) State taxes, net of federal benefit (3) (7) (6) Tax credits (3) (6) (7) Change in Valuation Allowances 89 113 120 Non-Controlling Interest — — 2 Earnings of equity investments — 14 15 Withholding taxes 7 3 4 Tax on divestiture — 23 — Convertible debt — — (10) Other, net 1 1 — Provision for income taxes $ 16 $ 32 $ 1 |
Schedule of Deferred Tax Assets And Liabilities | (Dollars in millions) As of December 31 Deferred taxes 2021 2020 Assets Provisions $ 41 $ 43 Intangibles assets 4 7 Tax receivables, principally net operating loss carryforward 342 262 Credits 14 14 Lease liabilities 26 29 Other 12 6 Deferred tax assets before allowances $ 439 $ 361 Valuation allowances (408) (323) Total $ 31 $ 38 Liabilities Property, plant and equipment (7) (5) Distribution taxes (3) (2) Convertible Senior Notes (6) (8) Operating lease right-of-use assets (25) (29) Total $ (41) $ (44) Net deferred tax liability $ (10) $ (6) |
Summary of Valuation Allowance | The following table summarizes the activity related to the Company’s valuation allowances: (Dollars in millions) As of December 31 Valuation Allowances Against Deferred Tax Assets 2021 2020 Allowances at beginning of year $ 323 $ 179 Benefits reserved current year 95 133 Benefits recognized current year (1) — Translation difference (9) 11 Allowances at end of year $ 408 $ 323 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: (Dollars in millions) As of December 31 Unrecognized Tax Benefits 2021 2020 Unrecognized tax benefits at beginning of year $ 7 $ 4 Increases as a result of tax positions taken during the current period 1 3 Decreases as a result of tax positions taken during a prior period (1) — Total unrecognized tax benefits at end of year $ 7 $ 7 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic And Diluted Loss Per Share | The following table sets forth the computation of basic and diluted loss per share for the years ended December 31, 2021, 2020 and 2019. (U.S. dollars in millions, except per share amounts) Year Ended December 31 2021 2020 2019 Numerator: Basic and diluted: Net loss attributable to common shareholders $ (385) $ (545) $ (500) Denominator: Basic: Weighted average number of shares outstanding (in millions) 111.88 111.56 101.62 Diluted: Weighted-average number of shares outstanding, assuming 111.88 111.56 101.62 Basic loss per share $ (3.44) $ (4.89) $ (4.92) Diluted loss per share $ (3.44) $ (4.89) $ (4.92) |
Equity Incentive Awards And Convertible Shares | The table below shows equity incentive awards and convertible shares due to the Notes excluded from the diluted loss per share calculations because their effect would be antidilutive: (Share amounts) Year Ended December 31 2021 2020 2019 Equity incentive awards 719,178 817,733 287,326 Convertible shares due to the Notes 9,277,305 9,277,305 5,515,548 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Key financial measures reviewed by the Company’s CODM are as follows: (Dollars in millions) Year Ended December 31 Loss Before Income Taxes 2021 2020 2019 Electronics $ (286) $ (268) $ (324) Brake Systems — (37) (64) Segment operating loss (286) (305) (388) Corporate and other (71) (62) (72) Gain on divestiture and assets impairment charge, net — (91) — Interest and other non-operating items, net (18) (15) 9 (Gain) /loss from equity method investment 6 (39) (70) Loss before income taxes $ (369) $ (512) $ (521) (Dollars in millions) Year Ended December 31 Capital Expenditures 2021 2020 2019 Electronics $ 60 $ 79 $ 153 Brake Systems — 12 60 Total capital expenditures $ 60 $ 91 $ 213 (Dollars in millions) Year Ended December 31 Depreciation and Amortization 2021 2020 2019 Electronics $ 114 $ 101 $ 83 Brake Systems — 2 32 Total depreciation and amortization $ 114 $ 103 $ 115 (Dollars in millions) As of December 31 Segment Assets 2021 2020 Electronics $ 1,853 $ 2,391 Brake Systems — — Intersegment assets (103) (103) Total assets $ 1,750 $ 2,288 |
Long-lived Assets By Geographic Area | (Dollars in millions) As of December 31 Long-lived Assets 2021 2020 Asia $ 99 $ 125 Americas 262 294 Europe 449 625 Total $ 810 $ 1,044 |
Relationship with Former Pare_2
Relationship with Former Parent and Related Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of amount due to and from related parties | Amounts due to and due from related party components as summarized in the below table: (Dollars in millions) As of December 31 RELATED PARTY 2021 2020 Related party receivable $ 6 $ 9 Related party payables $ 1 $ 2 Related party short term debt $ — $ 16 Related party long-term debt $ — $ 115 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Aug. 10, 2020USD ($) | May 28, 2019USD ($)$ / sharesshares | Dec. 31, 2021USD ($)segment$ / shares | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Oct. 04, 2021USD ($)$ / shares | Feb. 03, 2020transaction | Oct. 30, 2019USD ($) | Jun. 14, 2019 |
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of operating segments | segment | 1 | 2 | |||||||
Sale of stock, issued in transaction (in shares) | shares | 24,000,000 | ||||||||
Sale of stock (in dollars per share) | $ / shares | $ 17.50 | ||||||||
Issuance of common stock | $ 403,000,000 | $ 0 | $ 0 | $ 403,000,000 | |||||
Proceeds from collection of long-term loans to related parties | 20,000,000 | ||||||||
Proceeds from divestitures | $ 0 | $ 198,000,000 | $ 0 | ||||||
Share price (in dollars per share) | $ / shares | $ 35.48 | ||||||||
Operating cash flow impact | $ 10,000,000 | ||||||||
Accrued bonuses earned | 33,000,000 | ||||||||
Other Operating Income (Expense) | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Payments for merger related costs | 18,000,000 | ||||||||
Retention bonus expense | 11,000,000 | ||||||||
Magna International Inc | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Loss on contract termination | $ 110,000,000 | ||||||||
Veoneer Inc | Qualcomm | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Share price (in dollars per share) | $ / shares | $ 37 | ||||||||
Merger, transaction amount | $ 4,500,000,000 | ||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | VBNS | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Aggregate purchase price | $ 176,000,000 | ||||||||
Number of transactions | transaction | 2 | ||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | VBS | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Aggregate purchase price | $ 1 | ||||||||
Proceeds from divestitures | $ 22,000,000 | ||||||||
VNBS | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Equity method investment, ownership percentage | 51.00% | ||||||||
VBNS | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Minority ownership percentage | 49.00% | ||||||||
4% Convertible Senior Notes Due 2024 | Convertible Notes Payable | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Debt instrument, face amount | $ 207,000,000 | ||||||||
Debt instrument, interest rate | 4.00% | ||||||||
Proceeds from debt, net of issuance costs | $ 200,000,000 | ||||||||
4% Convertible Senior Notes Due 2024 | Convertible Notes Payable | Over-Allotment Option | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Debt instrument, face amount | $ 27,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) |
Product Information [Line Items] | ||||
Contract with customer, liability | $ 0 | $ 0 | ||
Assets impairment charge | $ 0 | $ 0 | ||
Number of operating segments | segment | 1 | 2 | ||
Production parts average payment terms | 30 days | |||
Capitalized contract cost, impairment loss | $ 0 | |||
Research and development, reimbursements from customers | 136,000,000 | $ 202,000,000 | 103,000,000 | |
Restricted cash | 1,000,000 | 0 | ||
Foreign currency transaction gain (loss), realized | $ 9,000,000 | $ (8,000,000) | $ 2,000,000 | |
Settlement payment | $ 20,000,000 | |||
Minimum | ||||
Product Information [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
Maximum | ||||
Product Information [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Four Largest Customers | Sales Revenue | Customer Concentration Risk | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 42.00% | 53.00% | 59.00% | |
Four Largest Customers | Accounts Receivable | Customer Concentration Risk | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 28.00% | 40.00% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,657 | $ 1,373 | $ 1,902 |
Non-US | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 128 | $ 140 | $ 175 |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Primary Region and Products of Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,657 | $ 1,373 | $ 1,902 |
Electronics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,609 | 1,303 | 1,530 |
Brake Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 48 | 70 | 372 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,657 | 1,373 | 1,902 |
Operating Segments | Restraint Control Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 689 | 670 | 822 |
Operating Segments | Active Safety products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 869 | 624 | 708 |
Operating Segments | Brake Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 48 | 70 | 372 |
Operating Segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 51 | 9 | 0 |
Operating Segments | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 452 | 347 | 662 |
Operating Segments | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 538 | 467 | 616 |
Operating Segments | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 667 | 559 | 624 |
Operating Segments | Electronics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,609 | 1,303 | 1,530 |
Operating Segments | Electronics | Restraint Control Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 689 | 670 | 822 |
Operating Segments | Electronics | Active Safety products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 869 | 624 | 708 |
Operating Segments | Electronics | Brake Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating Segments | Electronics | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 51 | 9 | 0 |
Operating Segments | Electronics | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 452 | 322 | 350 |
Operating Segments | Electronics | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 490 | 422 | 556 |
Operating Segments | Electronics | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 667 | 559 | 624 |
Operating Segments | Brake Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 48 | 70 | 372 |
Operating Segments | Brake Systems | Restraint Control Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating Segments | Brake Systems | Active Safety products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating Segments | Brake Systems | Brake Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 48 | 70 | 372 |
Operating Segments | Brake Systems | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating Segments | Brake Systems | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 25 | 312 |
Operating Segments | Brake Systems | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 48 | 45 | 60 |
Operating Segments | Brake Systems | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 0 | $ 0 | $ 0 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Contract Balances with Customers (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Receivables, net | $ 267 | $ 292 | |
Contract assets | $ 6 | $ 6 | $ 6 |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Contract Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Contract assets | ||
Beginning balance | $ 6 | $ 6 |
Increases due to revenue recognized | 26 | 21 |
Decreases due to transfer to receivables | (26) | (21) |
Ending balance | $ 6 | $ 6 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, renewal term | 12 years | |
Finance lease, right-of-use asset | $ 55 | $ 52 |
Finance lease, right-of-use asset, accumulated depreciation | 10 | $ 6 |
Operating lease, lease not yet commenced, amount | $ 16 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 1 month | |
Operating lease, termination period | 1 month | |
Operating lease, lease not yet commenced, term of contract | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 24 years | |
Operating lease, termination period | 5 years | |
Operating lease, lease not yet commenced, term of contract | 12 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 24 | $ 24 |
Finance lease cost | ||
Amortization of right-of-use assets | 6 | 4 |
Interest on lease liabilities | 2 | 2 |
Total finance lease cost | 8 | 6 |
Short-term lease cost | 1 | 1 |
Total lease cost | $ 33 | $ 31 |
Leases - Other Information of L
Leases - Other Information of Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows used for operating leases | $ 23 | $ 23 |
Operating cash flows used for finance leases | 2 | 2 |
Financing cash flows used for finance leases | 4 | 2 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | 22 | 17 |
Finance leases | $ 6 | $ 17 |
Leases - Lease Weighted Average
Leases - Lease Weighted Average Terms and Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted-average remaining lease term | ||
Operating Leases | 6 years | 7 years |
Finance Leases | 9 years | 10 years |
Weighted-average discount rate | ||
Operating leases | 3.40% | 3.40% |
Finance leases | 4.88% | 4.95% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Operating and Finance Lease Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 22 |
2023 | 19 |
2024 | 12 |
2024 | 9 |
2026 | 7 |
Thereafter | 22 |
Total lease payments | 91 |
Less imputed interest | 9 |
Total lease liabilities | 82 |
Finance Leases | |
2022 | 9 |
2022 | 9 |
2023 | 10 |
2024 | 4 |
2025 | 4 |
Thereafter | 27 |
Total lease payments | 63 |
Less imputed interest | 13 |
Total lease liabilities | $ 50 |
Leases - Schedule of Lease Obli
Leases - Schedule of Lease Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Other current liabilities | $ 20 | |
Lease liabilities - non current | 62 | $ 71 |
Total lease liabilities | 82 | |
Finance Leases | ||
Other current liabilities | 7 | |
Financial lease non-current liabilities | 43 | $ 46 |
Total lease liabilities | $ 50 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | May 28, 2019 |
Short-Term Debt: | |||
Short-term borrowings | $ 3 | $ 4 | |
Long-Term Debt: | |||
Total Debt | 187 | 181 | |
4% Convertible Senior Notes Due 2024 | Convertible Notes Payable | |||
Long-Term Debt: | |||
Long-Term Debt: | 179 | 170 | |
Debt instrument, interest rate | 4.00% | ||
Other Long-Term Borrowings | Secured Debt | |||
Long-Term Debt: | |||
Long-Term Debt: | $ 5 | $ 7 |
Debt - Narrative (Details)
Debt - Narrative (Details) | May 28, 2019USD ($)trading_day$ / sharesshares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||
Interest expense | $ 18,000,000 | $ 17,000,000 | |
Convertible debt | $ 341,000,000 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold consecutive trading days | trading_day | 30 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold consecutive trading days | trading_day | 20 | ||
Convertible Notes Payable | 4% Convertible Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.00% | ||
Debt instrument, face amount | $ 207,000,000 | ||
Proceeds from debt, net of issuance costs | 200,000,000 | ||
Debt issuance costs, gross | $ 7,000,000 | ||
Debt issuance cost amortization period | 5 years | ||
Debt conversion, converted instrument, shares issued (in shares) | shares | 0.0448179 | ||
Debt instrument, conversion price (in dollars per share) | $ / shares | $ 22.3125 | $ 22.3125 | |
Debt instrument, redemption price, percentage | 100.00% | ||
Debt instrument, interest rate | 10.00% | ||
Debt instrument, carrying amount of equity component | $ 46,000,000 | ||
Convertible debt | $ 255,000,000 | ||
Convertible Notes Payable | 4% Convertible Senior Notes Due 2024 | Maximum | |||
Debt Instrument [Line Items] | |||
Debt conversion, converted instrument, shares issued (in shares) | shares | 0.0571428 | ||
Debt instrument, percentage of stock price trigger | 130.00% | ||
Convertible Notes Payable | 4% Convertible Senior Notes Due 2024 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage of stock price trigger | 98.00% | ||
Debt Par Value | 4% Convertible Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,000 |
Debt - Schedule of Notes (Detai
Debt - Schedule of Notes (Details) - 4% Convertible Senior Notes Due 2024 - Convertible Notes Payable - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | May 28, 2019 |
Debt Instrument [Line Items] | |||
Principal amount (face value) | $ 207 | $ 207 | |
Unamortized issuance cost | (3) | (4) | |
Unamortized debt discount | (25) | (33) | |
Net Carrying value | $ 179 | $ 170 | |
Debt instrument, interest rate | 4.00% |
Divestiture and Held for Sale -
Divestiture and Held for Sale - Narrative (Details) - USD ($) | Aug. 10, 2020 | Oct. 30, 2019 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 03, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets impairment charge | $ 0 | $ 0 | |||||
Proceeds from divestitures | 0 | $ 198,000,000 | 0 | ||||
Gain on disposal | $ 0 | (91,000,000) | $ 0 | ||||
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 | ||||||
Aggregate purchase price | $ 1 | ||||||
Proceeds from divestitures | $ 22,000,000 | ||||||
Gain on disposal | $ 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] | |||||||
Aggregate purchase price | $ 176,000,000 | ||||||
Gain on disposal | $ 175,000,000 | ||||||
Gain on disposal, net of closing costs | $ 77,000,000 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring expenses | $ 6,000,000 | $ 0 | $ 0 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) kr in Millions, $ in Millions | Jul. 01, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020SEK (kr) | Dec. 31, 2019USD ($) | Jul. 01, 2021USD ($)business_unitsoftware_engineer | Apr. 02, 2020 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 316 | $ 317 | |||||
Acquisition of intangible assets | 1 | 10 | $ 0 | ||||
Net sales | $ 1,657 | 1,373 | $ 1,902 | ||||
Intellectual Property | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition of intangible assets | $ 10 | ||||||
Finite-lived intangible asset, useful life | 8 years | ||||||
Intellectual Property | License | |||||||
Business Acquisition [Line Items] | |||||||
Net sales | $ 10 | ||||||
Zenuity | |||||||
Business Acquisition [Line Items] | |||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | ||||
Cash contribution to joint venture | $ 25 | kr 240 | |||||
Zenuity, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 25 | ||||||
Business combination, acquisition related costs | $ 1 | ||||||
Zenuity, Inc | Zenuity | |||||||
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 | Dec. 31, 2021 | Jul. 01, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 316 | $ 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 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)contract | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, gain on derivative (less than for 2020) | $ 3 | $ 1 | |
Derivative, loss on derivative | $ 1 | ||
Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount | 300 | 179 | |
Derivative asset | 2 | 2 | |
Derivative liability | $ 1 | $ 1 | |
Foreign exchange swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of foreign currency derivatives held | contract | 0 | ||
Maximum | Foreign exchange swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, term of contract | 6 months |
Receivables - Schedule of Accou
Receivables - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Receivables | $ 269 | $ 295 |
Allowance | ||
Allowance at beginning of year | (3) | (3) |
Current period provision for expected credit losses | 0 | (1) |
Reversal of allowance | 1 | 0 |
Write-off against allowance | 0 | 1 |
Allowance at end of year | (2) | (3) |
Total receivables, net of allowance | $ 267 | $ 292 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Trade Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade notes receivables | $ 276 | $ 52 |
Bank notes without recourse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade notes receivables | 67 | $ 25 |
Bank notes without recourse | CHINA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade notes receivables | $ 5 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Raw material | $ 165 | $ 105 |
Work in progress | 23 | 14 |
Finished products | 53 | 51 |
Inventories | 241 | 170 |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Inventory reserve at beginning of year | (36) | (25) |
Inventory reserve at end of year | (49) | (36) |
Total inventories, net of reserve | 192 | 134 |
Inventory | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Addition to allowance | (16) | (11) |
Write-off against allowance | 0 | 1 |
Translation difference | $ 3 | $ (1) |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Operating related accruals | $ 57 | $ 70 |
Employee related accruals | 94 | 102 |
Customer pricing accruals | 8 | 20 |
Product related liabilities | 28 | 19 |
Other accruals | 22 | 21 |
Total Accrued Expenses | 209 | 232 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Product related liabilities | $ 8 | $ 9 |
Equity Method Investment (Detai
Equity Method Investment (Details) kr in Millions, $ in Millions | Jul. 01, 2020USD ($) | Jul. 01, 2020SEK (kr) | Dec. 31, 2021USD ($) | Dec. 31, 2021SEK (kr) | Dec. 31, 2020USD ($)owner | Dec. 31, 2020SEK (kr) | Dec. 31, 2019USD ($) | Jul. 01, 2021business_unitsoftware_engineerinstallment | Apr. 02, 2020 | Jun. 30, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Asset impairment charge | $ 0 | $ 168 | $ 0 | |||||||
Equity method investment | 0 | 153 | ||||||||
Sale of equity method investments | 29 | 9 | ||||||||
Gain/(loss) from equity method investment | $ 6 | $ (39) | (70) | |||||||
Zenuity | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage in joint venture | 50.00% | 50.00% | 50.00% | |||||||
Cash contribution to joint venture | $ 25 | kr 240 | ||||||||
Asset impairment charge | 24 | |||||||||
Proceeds from dividends received | $ 13 | kr 108 | $ 35 | kr 327 | ||||||
Number of owners | owner | 2 | |||||||||
Gain/(loss) from equity method investment | 6 | $ (39) | $ (70) | |||||||
Zenuity | Zenuity, Inc | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Cash contribution to joint venture | $ 37 | |||||||||
Number of software engineers | software_engineer | 200 | |||||||||
Number of business units | business_unit | 2 | |||||||||
Number of annual installment payments | installment | 10 | |||||||||
Zenuity | Zenuity, Inc | Intellectual Property | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Intellectual property acquired, consideration | $ 114 | kr 1,067 | 127 | kr 1,067 | ||||||
AutoTechFund I, L.P | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage in joint venture | 20.00% | |||||||||
Equity method investment | 13 | 12 | $ 15 | |||||||
Proceeds from equity method investment, distribution | 3 | |||||||||
Sale of equity method investments | 17 | |||||||||
Gain/(loss) from equity method investment | 5 | |||||||||
Zenuity and AutoTechFund | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investment | $ 0 | $ 153 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,018 | $ 1,022 | |
Less accumulated depreciation | (649) | (591) | |
Net of accumulated depreciation | 369 | 431 | |
Depreciation | 107 | 97 | $ 95 |
Cost of sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 63 | 54 | 59 |
Selling, general and administrative expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 5 | 4 | 4 |
Research, development and engineering expenses, net | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 39 | 39 | $ 32 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 852 | 825 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated life (years) | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated life (years) | 8 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 130 | 134 | |
Estimated life (years) | 20 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 36 | $ 63 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Finance lease, right-of-use asset | $ 55 | $ 52 |
Machinery, Equipment, Buildings, and Land under Finance Lease Contracts | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease, right-of-use asset | $ 45 | $ 47 |
Other Comprehensive Loss (Detai
Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ 853 | $ 1,239 | $ 1,818 | $ 1,927 |
Accumulated Other Comprehensive (Loss) /Gain | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (8) | 5 | (44) | $ (19) |
Cumulative translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (4) | 15 | (34) | |
Pension liability, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (4) | (10) | (10) | |
Deferred taxes on the pension liability | $ 1 | $ 3 | $ 3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 317 | |
Goodwill, end of period | 316 | $ 317 |
Electronics Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 317 | 290 |
Acquisition adjustment | 2 | 23 |
Translation differences | (3) | 4 |
Goodwill, end of period | $ 316 | $ 317 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Amortizable Intangible | ||
Gross carrying amount | $ 151 | $ 145 |
Transfer | 0 | (3) |
Addition | 1 | 11 |
Translation differences | (2) | 2 |
Accumulated amortization | (137) | (134) |
Intangible assets, net | $ 13 | $ 21 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Intangible assets, net | $ 13 | $ 21 | |
Amortization of intangibles | 7 | 6 | $ 20 |
Amortization, 2022 | 5 | ||
Amortization, 2023 | 2 | ||
Amortization, 2024 | 2 | ||
Amortization, 2025 | 1 | ||
Amortization, 2026 | $ 1 | ||
Maximum | |||
Goodwill [Line Items] | |||
Intangible assets, weighted average useful life | 5 years 6 months | ||
Technology-Based Intangible Assets | |||
Goodwill [Line Items] | |||
Intangible assets, net | $ 13 | $ 21 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Change in Product Related Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Product Warranty Accrual | ||
Reserve at beginning of the year | $ 19 | $ 15 |
Change in reserve | 16 | 11 |
Cash settlements | (6) | (8) |
Translation difference | (1) | 1 |
Reserve at end of the year | $ 28 | $ 19 |
Commitments and Contingencies-
Commitments and Contingencies- Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Liability Contingency [Line Items] | ||
Product related liabilities | $ 28,000,000 | $ 19,000,000 |
Guarantees | 0 | 0 |
Affiliated Entity | ||
Product Liability Contingency [Line Items] | ||
Increase in reserve balance | 10,000,000 | |
Product related liabilities | $ 8,000,000 | $ 9,000,000 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, cost | $ 4 | $ 4 | $ 5 | |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation | 4 | 4 | ||
Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension expense | 4 | 4 | 4 | |
Net periodic benefit cost | 4 | 4 | 4 | |
Accumulated benefit obligation | 12 | 54 | ||
Company contributions | 3 | 3 | ||
Benefit obligation | 55 | 60 | $ 54 | |
Pension Plans, Defined Benefit | Veoneer Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company contributions | 2 | $ 2 | ||
Expected future employer contributions, next fiscal year | $ 3 | |||
Pension Plans, Defined Benefit | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 3 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Changes in Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance sheet classification | |||
Other non-current assets | $ 3 | $ 0 | |
Pension liabilities | (16) | (20) | |
Net amount recorded | (13) | (20) | |
Pension Plans, Defined Benefit | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | 60 | 54 | |
Service cost | 4 | 4 | $ 4 |
Interest cost | 1 | 1 | 1 |
Actuarial gain | (5) | (7) | |
Benefits paid | (5) | (3) | |
Net of Held for sales add back/Divestiture | 0 | 7 | |
Translation difference | 0 | 4 | |
Benefit obligation at end of year | 55 | 60 | 54 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 40 | 37 | |
Actual return on plan assets | 5 | 3 | |
Company contributions | 3 | 3 | |
Benefits paid | (5) | (3) | |
Net of Held for sales add back/Divestiture | 0 | (1) | |
Translation difference | (1) | 1 | |
Fair value of plan assets at year end | 42 | 40 | $ 37 |
Funded status recognized in the balance sheet | (13) | (20) | |
Balance sheet classification | |||
Net amount recorded | $ 7 | $ 15 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of actuarial loss | $ 1 | $ 1 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 4 | $ 4 |
Interest cost | 1 | 1 | 1 |
Expected return on plan assets | (2) | (2) | (2) |
Amortization of actuarial loss | 1 | 1 | 1 |
Net periodic benefit cost | $ 4 | $ 4 | $ 4 |
Retirement Plans - Schedule o_3
Retirement Plans - Schedule of Components of Accumulated Other Comprehensive Income Before Tax (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total accumulated other comprehensive loss recognized in the balance sheet | $ (13) | $ (20) |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 6 | 15 |
Prior service cost | 1 | 0 |
Total accumulated other comprehensive loss recognized in the balance sheet | $ 7 | $ 15 |
Retirement Plans - Changes in A
Retirement Plans - Changes in Accumulated Other Comprehensive Income Before Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Roll Forward] | |||
Held for sale | $ 0 | $ 0 | |
Add back Held for sale | 0 | (2) | |
Effect of plan combinations | 0 | 11 | |
Amortization of actuarial loss | (1) | (1) | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Roll Forward] | |||
Total retirement benefit recognized in accumulated other comprehensive income at beginning of year | 15 | 13 | |
Net actuarial gain | (7) | (8) | |
Amortization of actuarial loss | (1) | (1) | $ (1) |
Translation difference | 0 | 2 | |
Total retirement benefit recognized in accumulated other comprehensive income at end of year | $ 7 | $ 15 | $ 13 |
Retirement Plans - Pension Plan
Retirement Plans - Pension Plans for Which ABO Exceeds the Fair Value of Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | $ 16 | $ 60 |
Accumulated Benefit Obligation | 12 | 54 |
Fair value of plan assets | $ 0 | $ 40 |
Retirement Plans - Assumptions
Retirement Plans - Assumptions Used to Determine the Benefit Obligation (Details) - Pension Plans, Defined Benefit - Weighted average | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net benefit obligation | |||
Discount rate | 2.80% | 2.32% | |
Rate of increases in compensation level | 3.30% | 3.30% | |
Net periodic benefit cost | |||
Discount rate | 2.32% | 1.86% | 2.14% |
Rate of increases in compensation level | 3.28% | 4.33% | 4.39% |
Expected long-term rate of return on assets | 5.77% | 3.76% | 3.49% |
Retirement Plans - Schedule o_4
Retirement Plans - Schedule of Allocation Plan Assets (Details) - Pension Plans, Defined Benefit | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 64.00% | 65.00% |
Debt instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 21.00% | 22.00% |
Other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 15.00% | 13.00% |
Retirement Plans - Schedule o_5
Retirement Plans - Schedule of Fair Value of Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Assets | $ 42 | $ 40 | $ 37 |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets | 42 | 40 | |
U.S. Equity Large Cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets | 7 | 6 | |
U.S. Equity Non-U.S. Equity | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets | 20 | 20 | |
Non-U.S. Bonds Corporate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets | 2 | 4 | |
Non-U.S. Bonds Aggregate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets | 7 | 5 | |
Other Investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets | $ 6 | $ 5 |
Retirement Plans - Schedule o_6
Retirement Plans - Schedule of Estimated Expected Future Benefits (Details) - Pension Plans, Defined Benefit $ in Millions | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 2 |
2023 | 3 |
2024 | 3 |
2025 | 3 |
2026 | 3 |
Years 2027-2031 | $ 19 |
Stock Incentive Plan - Narrativ
Stock Incentive Plan - Narrative (Details) | Jun. 29, 2018shares | Dec. 31, 2021USD ($)share-basedCompensationPlanincentivePlan$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | May 10, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock incentive plans | incentivePlan | 2 | ||||
Stock-based compensation expense | $ | $ 11,000,000 | $ 6,000,000 | $ 5,000,000 | ||
Compensation cost not yet recognized, stock options | $ | $ 0 | $ 0 | $ 0 | ||
Share price (in dollars per share) | $ / shares | $ 35.48 | ||||
Adjustments to additional paid in capital, share-based compensation and exercise of stock options | $ | $ 1,000,000 | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of awards earned based on achievement of targets | 0.00% | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of awards earned based on achievement of targets | 200.00% | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted in the period (in shares) | 240,280 | ||||
Grant date fair value | $ | $ 8,000,000 | ||||
Grant date fair value (in dollars per share) | $ / shares | $ 29.24 | $ 10.86 | $ 26.19 | ||
PSs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted in the period (in shares) | 182,272 | ||||
Number of share-based compensation plan | share-basedCompensationPlan | 3 | ||||
Performance periods | 1 year | ||||
Expiration period | 3 years | ||||
Grant date fair value (in dollars per share) | $ / shares | $ 30.47 | $ 14.29 | |||
RSUs With Dividend Equivalent Rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted in the period (in shares) | 36,841 | ||||
RSUs and PSs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value | $ | $ 14,000,000 | ||||
Compensation cost not yet recognized | $ | $ 6,000,000 | ||||
Period of recognition | 1 year 7 months 6 days | ||||
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 | ||||
Percent of awards earned based on achievement of targets | 100.00% | ||||
2018 Stock Incentive Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted in the period (in shares) | 203,439 | ||||
2018 Stock Incentive Plan | PSs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted in the period (in shares) | 182,272 | ||||
2018 Stock Incentive Plan | Spin-Off | Autoliv | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of additional shares authorized (in shares) | 1,500,000 |
Stock Incentive Plan - Summary
Stock Incentive Plan - Summary of Restricted Share Activity (Details) - RSUs | 12 Months Ended |
Dec. 31, 2021shares | |
RSUs | |
Outstanding at beginning of year (in shares) | 1,010,894 |
Granted (in shares) | 240,280 |
Shares issued (in shares) | (371,541) |
Cancelled/Forfeited/Expired (in shares) | (317,678) |
Outstanding at end of year (in shares) | 561,955 |
Stock Incentive Plan - Summar_2
Stock Incentive Plan - Summary of Performance Share Activity (Details) - PSs | 12 Months Ended |
Dec. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at beginning of year (in shares) | 490,444 |
Granted (in shares) | 182,272 |
Shares issued (in shares) | (38,771) |
Cancelled/Forfeited/Expired (in shares) | (209,794) |
Outstanding at end of year (in shares) | 424,151 |
Stock Incentive Plan - Summar_3
Stock Incentive Plan - Summary of Stock Options Activity (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
SOs | |
Outstanding at beginning of the year (in shares) | 232,026,000,000 |
Exercised (in shares) | (53,125,000,000) |
Cancelled/Forfeited/Expired (in shares) | (10,715,000,000) |
Outstanding at ending of the year (in shares) | 168,186,000,000 |
Stock Incentive Plan - Summar_4
Stock Incentive Plan - Summary of Stock Options Activity By Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding (in shares) | 168,186,000,000 |
Remaining Contract life (in years) | 2 years 3 months 21 days |
20.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price (in dollars per share) | $ / shares | $ 20.25 |
Number outstanding (in shares) | 13,397,000,000 |
Remaining Contract life (in years) | 1 month 24 days |
20.91 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price (in dollars per share) | $ / shares | $ 20.91 |
Number outstanding (in shares) | 23,781,000,000 |
Remaining Contract life (in years) | 1 year 1 month 20 days |
28.67 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price (in dollars per share) | $ / shares | $ 28.67 |
Number outstanding (in shares) | 51,823,000,000 |
Remaining Contract life (in years) | 2 years 1 month 20 days |
34.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price (in dollars per share) | $ / shares | $ 34.25 |
Number outstanding (in shares) | 79,185,000,000 |
Remaining Contract life (in years) | 3 years 1 month 17 days |
Income Taxes - Income Before In
Income Taxes - Income Before Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss before income taxes | |||
U.S. | $ (212) | $ (400) | $ (230) |
Non-U.S. | (157) | (112) | (291) |
Loss before income taxes | $ (369) | $ (512) | $ (521) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Non-U.S. | $ 15 | $ 31 | $ 7 |
Deferred | |||
U.S. federal | 0 | 0 | (9) |
State | 0 | 0 | 2 |
Non-U.S. | 1 | 1 | 1 |
Total income tax expense | $ 16 | $ 32 | $ 1 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective income tax rate | |||
U.S. federal income tax rate | $ (78) | $ (108) | $ (109) |
Foreign tax rate variances | 3 | (1) | (8) |
State taxes, net of federal benefit | (3) | (7) | (6) |
Tax credits | (3) | (6) | (7) |
Change in Valuation Allowances | 89 | 113 | 120 |
Non-Controlling Interest | 0 | 0 | 2 |
Earnings of equity investments | 0 | 14 | 15 |
Withholding taxes | 7 | 3 | 4 |
Tax on divestiture | 0 | 23 | 0 |
Convertible debt | 0 | 0 | (10) |
Other, net | 1 | 1 | 0 |
Total income tax expense | $ 16 | $ 32 | $ 1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Income tax expense | $ 16 | $ 32 | $ 1 |
Domestic tax benefit | 10 | ||
Operating loss carryforwards | 1,543 | ||
Operating loss carryforward not subject to expiration | 1,405 | ||
Deferred tax assets | 6 | 6 | |
Deferred tax liabilities | 16 | 12 | |
Unrecognized tax benefits | 7 | 7 | $ 4 |
Unrecognized tax benefits that would impact effective tax rate | 2 | ||
Deferred tax liabilities for unremitted foreign earnings | 3 | ||
Estimated foreign earnings | 59 | ||
VNBS | |||
Income Tax Contingency [Line Items] | |||
Tax effect of discontinued operation | 23 | ||
Investments And Other Non Current Assets | |||
Income Tax Contingency [Line Items] | |||
Deferred tax assets | 6 | 6 | |
Other Noncurrent Liabilities | |||
Income Tax Contingency [Line Items] | |||
Deferred tax liabilities | 16 | $ 12 | |
Research and Development Tax Credit Carryforward | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | $ 14 |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Provisions | $ 41 | $ 43 |
Intangibles assets | 4 | 7 |
Tax receivables, principally net operating loss carryforward | 342 | 262 |
Credits | 14 | 14 |
Lease liabilities | 26 | 29 |
Other | 12 | 6 |
Deferred tax assets before allowances | 439 | 361 |
Valuation allowances | (408) | (323) |
Total | 31 | 38 |
Liabilities | ||
Property, plant and equipment | (7) | (5) |
Distribution taxes | (3) | (2) |
Convertible Senior Notes | (6) | (8) |
Operating lease right-of-use assets | (25) | (29) |
Total | (41) | (44) |
Net deferred tax liability | $ (10) | $ (6) |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowances Against Deferred Tax Assets (Details) - Deferred tax asset valuation allowance - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation Allowances Against Deferred Tax Assets | ||
Allowances at beginning of year | $ 323 | $ 179 |
Benefits reserved current year | 95 | 133 |
Benefits recognized current year | (1) | 0 |
Translation difference | (9) | 11 |
Allowances at end of year | $ 408 | $ 323 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized Tax Benefits | ||
Unrecognized tax benefits at beginning of year | $ 7 | $ 4 |
Increases as a result of tax positions taken during the current period | 1 | 3 |
Decreases as a result of tax positions taken during a prior period | (1) | 0 |
Total unrecognized tax benefits at end of year | $ 7 | $ 7 |
Loss Per Share - Computation of
Loss Per Share - Computation of Basic And Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic and diluted: | |||
Net loss attributable to common shareholders | $ (385) | $ (545) | $ (500) |
Denominator: | |||
Basic: Weighted average number of shares outstanding (in millions) (in shares) | 111,880 | 111,560 | 101,620 |
Diluted: Weighted-average number of shares outstanding, assuming dilution (in millions) (in shares) | 111,880 | 111,560 | 101,620 |
Basic loss per share (in dollars per share) | $ (3.44) | $ (4.89) | $ (4.92) |
Diluted loss per share (in dollars per share) | $ (3.44) | $ (4.89) | $ (4.92) |
Loss Per Share - Equity incenti
Loss Per Share - Equity incentive awards and convertible shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity incentive awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from loss per shares (in shares) | 719,178,000,000 | 817,733,000,000 | 287,326,000,000 |
Convertible shares due to the Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from loss per shares (in shares) | 9,277,305,000,000 | 9,277,305,000,000 | 5,515,548,000,000 |
Loss Per Share - Narrative (Det
Loss Per Share - Narrative (Details) - $ / shares | Dec. 31, 2021 | May 28, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt conversion converted instrument, potential maximum, number of shares issued (in shares) | 9,277,305 | |
4% Convertible Senior Notes Due 2024 | Convertible Notes Payable | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt instrument, conversion price (in dollars per share) | $ 22.3125 | $ 22.3125 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($)segment | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
Number of operating segments | segment | 1 | 2 | |
Long-lived assets | $ 810 | $ 1,044 | |
U.S. | |||
Concentration Risk [Line Items] | |||
Long-lived assets | 192 | 215 | |
Intangible assets and goodwill | $ 127 | $ 128 | |
Customer Concentration Risk | Sales Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.00% | 20.00% | 23.00% |
Customer Concentration Risk | Sales Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 16.00% | |
Customer Concentration Risk | Sales Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 11.00% | |
Customer Concentration Risk | Sales Revenue | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of (Loss)/Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Loss Before Income Taxes | $ (357) | $ (367) | $ (460) |
Gain on divestiture and assets impairment charge, net | 0 | (91) | 0 |
Interest and other non-operating items, net | (18) | (15) | 9 |
(Gain) /loss from equity method investment | 6 | (39) | (70) |
Loss before income taxes | (369) | (512) | (521) |
Capital Expenditures | 60 | 91 | 213 |
Depreciation and Amortization | 114 | 103 | 115 |
Segment Assets | 1,750 | 2,288 | |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Loss Before Income Taxes | (286) | (305) | (388) |
Corporate and other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Loss Before Income Taxes | (71) | (62) | (72) |
Intersegment Eliminations | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment Assets | (103) | (103) | |
Electronics | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Capital Expenditures | 60 | 79 | 153 |
Depreciation and Amortization | 114 | 101 | 83 |
Electronics | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Loss Before Income Taxes | (286) | (268) | (324) |
Segment Assets | 1,853 | 2,391 | |
Brake Systems | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Capital Expenditures | 0 | 12 | 60 |
Depreciation and Amortization | 0 | 2 | 32 |
Brake Systems | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Loss Before Income Taxes | 0 | (37) | $ (64) |
Segment Assets | $ 0 | $ 0 |
Segment Information - Schedul_2
Segment Information - Schedule of Long-lived Assets by Region (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Long-lived Assets | $ 810 | $ 1,044 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Long-lived Assets | 99 | 125 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Long-lived Assets | 262 | 294 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived Assets | 449 | 625 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Long-lived Assets | $ 192 | $ 215 |
Relationship with Former Pare_3
Relationship with Former Parent and Related Entities - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)installment | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||
Related party purchases | $ 0 | $ 1 | $ 16 |
Zenutiy A B | Zenuity, Inc | Intellectual Property | |||
Related Party Transaction [Line Items] | |||
Intellectual property acquired, consideration | $ 114 | ||
Number of annual installment payments | installment | 10 | ||
VBNS | |||
Related Party Transaction [Line Items] | |||
Majority ownership percentage | 51.00% | ||
VNBS | Nissin Kogyo | |||
Related Party Transaction [Line Items] | |||
Minority ownership percentage | 49.00% | ||
Affiliated Entity | Autoliv Nissin Brakes Systems | |||
Related Party Transaction [Line Items] | |||
Expenses, related party | $ 1 | $ 1 | 5 |
Affiliated Entity | Autoliv | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 70 | 70 | 101 |
Affiliated Entity | Autoliv | Engineering Services | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 1 | 2 | 2 |
Related party costs | $ 1 | $ 1 | $ 1 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Related party receivable | $ 6 | $ 9 |
Related party payables | 1 | 2 |
Related party short-term debt | 0 | 16 |
Related party long-term debt | $ 0 | $ 115 |