Relationship with Former Parent and Related Entities

9 Months Ended

Sep. 30, 2020

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 Company recognized less than $1 million of expense under the TSA for the three and nine month periods ended September 30, 2020, and $1 million and $4 million of expense under the TSA for the three and nine month periods ended September 30, 2019 respectively. The Company recognized less than $1 million of income under the TSA for the three and nine month periods ended September 30, 2020 and 2019.

Throughout the periods covered by the unaudited condensed consolidated financial statements, Veoneer sold finished goods to Autoliv and Nissin Kogyo, the 49% owner in VNBS (a former 51% owned subsidiary). Related party sales amounted to $18 million and $48 million for the three and nine month periods ended September 30, 2020, respectively and $24 million and $77 million for the three and nine month periods ended September 30, 2019, respectively.

Related Party Balances

Amounts due to and due from related parties are summarized in the below table:


Related Party	As of
(Dollars in millions)	September 30, 2020		December 31, 2019
Related party receivable	$	6	$	11

Related party payables	1		3
Related party short-term debt	14		1
Related party long-term debt	103		—

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.

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, with the first payment due on July 1, 2021.