Relationship with Former Parent and Related Entities

12 Months Ended

Dec. 31, 2021

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.