Relationship with Former Parent and Related Entities

6 Months Ended

Jun. 30, 2021

Relationship with Former Parent and Related Entities

Transactions with Related Parties

Veoneer and Autoliv entered into transition service agreements in connection with the Spin-Off under which certain services are provided by Autoliv to Veoneer and certain services are provided by Veoneer to Autoliv. For the three and six month periods ended June 30, 2021, the Company recognized zero of expense under the agreements and less than $1 million for the three and six month period ended June 30, 2020. For the three and six month period ended June 30, 2021, the Company recognized zero of income under the TSA and less than $1 million of income for the three and six month period ended June 30, 2020.

Throughout the periods covered by the unaudited condensed consolidated financial statements, Veoneer sold finished goods to Autoliv and Related Party sales amounted to $20 million and $41 million for the three and six month periods ended June 30, 2021, respectively, and $11 million and $30 million for the three and six month periods ended June 30, 2020, respectively.

Related Party Balances

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


Related Party	As of
(Dollars in millions)	June 30, 2021		December 31, 2020
Related party receivable	$	8	$	9

Related party payables	1		2
Related party short-term debt	—		16
Related party long-term debt	—		115

Related party receivables are mainly driven by reseller agreements put in place in connection with the Spin-Off. The reseller agreements are between Autoliv and Veoneer and facilitate the temporary arrangement of the sale of Veoneer products manufactured for certain customers for a limited period after the Spin-Off. Autoliv collects the customer payments and remits the payments to Veoneer.