Equity Method Investment

6 Months Ended

Jun. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

As of June 30, 2020, the Company had one equity method investment, which is Zenuity, a 50% ownership joint venture with Volvo Cars.

During the second quarter of 2020, Veoneer contributed SEK 90 million (approximately $9 million) in cash (representing 50% of the total contribution, with the remainder made by Volvo Cars) into Zenuity to support its current operating cash flow needs.

During the first quarter of 2020, Veoneer contributed SEK 150 million (approximately $16 million) in cash (representing 50% of the total contribution, with the remainder made by Volvo Cars) into Zenuity to support its future operating cash flow needs.

The profit and loss attributed to the investment is shown in the line item Loss from equity method investment in the Unaudited Condensed Consolidated Statements of Operations. Veoneer’s share of Zenuity’s loss for the three and six month periods ended June 30, 2020 was $19 million and $38 million, respectively. Veoneer's share of Zenuity's loss for the three and six month periods ended June 30, 2019 was $18 million and $35 million, respectively. As of June 30, 2020 and December 31, 2019, the Company’s equity investment in Zenuity was $74 million and $87 million, respectively.

Certain unaudited summarized income statement information of Zenuity, for the three and six month periods ended June 30, 2020 and 2019, is shown below:


	Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	2020		2019		2020		2019
Net sales	$	1	$	—	$	2	$	1
Gross profit	—		—		—		—
Operating loss	(39)		(35)		(75)		(69)
Loss before income taxes	(39)		(35)		(75)		(69)
Net loss	(39)		(36)		(75)		(69)