Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 2, the Company entered into a non-binding agreement with Volvo Cars to separate Zenuity, a 50% ownership joint venture with Volvo Cars 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. As part of the split, Veoneer received IP licenses and added around 200 software engineers, located in Germany, the US and Sweden. The Company is evaluating the impact of the transaction and expects to recognize a gain, but is unable to reasonably estimate the amount of the gain at this time.

On April 24, 2020, a wholly-owned subsidiary of the Company entered into a credit agreement with a customer pursuant to which it was entitled to borrow an aggregate amount of up to $17 million in the form of term loans. On June 25, 2020, the parties amended the credit agreement to extend the repayment period and to increase the aggregate amount available for borrowing to $26 million. On July 2, 2020, the Company drew an additional $9 million in the form of a new term loan under the amended credit agreement. The proceeds of any such term loans may only be used to fund costs and expenses incurred by the subsidiary for such customer’s projects.