10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2023

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934   For the transition period from  to

Commission File No.: 001-12933

AUTOLIV, INC.

(Exact name of registrant as specified in its charter)

Delaware	51-0378542
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
Klarabergsviadukten 70, Section B7
Box 70381,
Stockholm, Sweden	SE-107 24
(Address of principal executive offices)	(Zip Code)

+46 8 587 20 600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $1.00 per share)	ALV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No: ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes: ☒ No: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes: ☐ No: ☒

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: As of April 17, 2023, there were 85,829,804 shares of common stock of Autoliv, Inc., par value $1.00 per share, outstanding.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Autoliv, Inc. (“Autoliv,” the “Company” or “we”) or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements.

In some cases, you can identify these statements by forward-looking words such as “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “may,” “likely,” “might,” “would,” “should,” “could,” or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words.

Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation: general economic conditions, including inflation; the impacts of the coronavirus (COVID-19) pandemic on the Company’s financial condition, business operations, operating costs, liquidity, competition and the global economy; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain disruptions, including port, transportation and distribution delays or interruptions; supply chain disruptions and component shortages specific to the automotive industry or the Company; disruptions and impacts relating to the ongoing conflict between Russia and Ukraine; changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignments: restructuring and cost reduction and efficiency initiatives and the market reaction thereto; loss of business from increased competition; higher raw material, fuel and energy costs; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; customer bankruptcies, consolidations or restructuring or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; component shortages; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with customers; successful integration of acquisitions and operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgements or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting our business; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; and other risks and uncertainties identified in Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q, Item 1A “Risk Factors” and Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 16, 2023.

For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

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INDEX
PART I - FINANCIAL INFORMATION		4
ITEM 1. FINANCIAL STATEMENTS		4
1.	Basis of Presentation	9
2.	New Accounting Standards	10
3.	Fair Value Measurements	11
4.	Income Taxes	14
5.	Inventories	14
6.	Restructuring	15
7.	Product-Related Liabilities	15
8.	Retirement Plans	16
9.	Contingent Liabilities	17
10.	Stock Incentive Plan	19
11.	Earnings Per Share	19
12.	Revenue Disaggregation	20
13.	Subsequent Events	20
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		21
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		31
ITEM 4. CONTROLS AND PROCEDURES		31
PART II - OTHER INFORMATION		32
ITEM 1. LEGAL PROCEEDINGS		32
ITEM 1A. RISK FACTORS		32
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		32
ITEM 3. DEFAULTS UPON SENIOR SECURITIES		32
ITEM 4. MINE SAFETY DISCLOSURES		32
ITEM 5. OTHER INFORMATION		32
ITEM 6. EXHIBITS		33

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in millions, except per share data)

	Three Months Ended March 31,
	2023			2022
Net sales	$	2,493		$	2,124
Cost of sales		(2,113	)		(1,836	)
Gross profit		379			288
Selling, general and administrative expenses		(132	)		(115	)
Research, development and engineering expenses, net		(116	)		(107	)
Amortization of intangibles		(0	)		(1	)
Other income (expense), net1)		(4	)		70
Operating income		127			134
Income from equity method investment		2			1
Interest income		2			1
Interest expense		(19	)		(13	)
Other non-operating items, net		(2	)		(4	)
Income before income taxes		109			119
Income tax expense		(34	)		(36	)
Net income2)		74			83
Less: Net income attributable to non-controlling interest		0			0
Net income attributable to controlling interest	$	74		$	83
Net earnings per share – basic	$	0.86		$	0.95
Net earnings per share – diluted	$	0.86		$	0.94
Weighted average number of shares outstanding, net of    treasury shares (in millions)		86.1			87.5
Weighted average number of shares outstanding,    assuming dilution and net of treasury    shares (in millions)		86.3			87.8
Cash dividend per share – declared	$	0.66		$	0.64
Cash dividend per share – paid	$	0.66		$	0.64

1) The three months period ending March 31, 2022, includes a gain on sale of property of $80 million in Japan.

2) For the three months period ended March 31, 2023 and March 31, 2022, the aggregate transaction gain (loss) included in net income for the period were $(5) million and $(6) million, respectively.

See Notes to the unaudited Condensed Consolidated Financial Statements.

4

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in millions)

	Three Months Ended March 31,
	2023			2022
Net income	$	74		$	83
Other comprehensive income before tax:
Change in cumulative translation adjustments		36			6
Net change in unrealized components of defined benefit plans		(0	)		12
Other comprehensive income, before tax		35			18
Tax effect allocated to other comprehensive income		0			(4	)
Other comprehensive income, net of tax		35			14
Comprehensive income		110			98
Less: Comprehensive income attributable to    non-controlling interest		0			0
Comprehensive income attributable to    controlling interest	$	110		$	97

See Notes to the unaudited Condensed Consolidated Financial Statements.

5

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in millions)

	As of
	March 31, 2023			December 31, 2022
Assets
Cash and cash equivalents	$	713		$	594
Receivables, net		2,106			1,907
Inventories, net		986			969
Prepaid expenses and accrued income		166			160
Other current assets		90			84
Total current assets		4,061			3,714
Property, plant and equipment, net		2,045			1,960
Operating lease right-of-use assets		169			160
Goodwill		1,376			1,375
Intangible assets, net		7			7
Other non-current assets		528			502
Total assets		8,185			7,717
Liabilities and equity
Short-term debt		577			711
Accounts payable		1,683			1,693
Accrued expenses		969			915
Operating lease liabilities - current		41			39
Other current liabilities		258			283
Total current liabilities		3,529			3,642
Long-term debt		1,601			1,054
Pension liability		159			154
Operating lease liabilities - non-current		127			119
Other non-current liabilities		128			121
Total non-current liabilities		2,015			1,450
Common stock		91			91
Additional paid-in capital		1,105			1,113
Retained earnings		2,295			2,310
Accumulated other comprehensive loss		(487	)		(522	)
Treasury stock		(376	)		(379	)
Total controlling interest's equity		2,627			2,613
Non-controlling interest		14			13
Total equity		2,641			2,626
Total liabilities and equity	$	8,185		$	7,717

See Notes to the unaudited Condensed Consolidated Financial Statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in millions)

	Three Months Ended March 31,
	2023			2022
Operating activities
Net income	$	74		$	83
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization		92			95
Gain on divestiture of property		—			(80	)
Other, net		(10	)		(11	)
Net change in operating assets and liabilities		(202	)		(18	)
Net cash (used in) provided by operating activities		(46	)		70
Investing activities
Expenditures for property, plant and equipment		(144	)		(112	)
Proceeds from sale of property, plant and equipment		0			95
Net cash used in investing activities		(143	)		(17	)
Financing activities
Net (decrease) increase in short-term debt		(135	)		9
Proceeds from long-term debt		533			—
Repayment of long-term debt		—			(10	)
Dividends paid		(57	)		(56	)
Stock repurchased		(42	)		(18	)
Common stock options exercised		0			0
Net cash provided by (used in) financing activities		300			(74	)
Effect of exchange rate changes on cash and cash equivalents		7			(11	)
Net increase (decrease) in cash and cash equivalents		119			(31	)
Cash and cash equivalents at beginning of period		594			969
Cash and cash equivalents at end of period	$	713		$	938

See Notes to unaudited Condensed Consolidated Financial Statements.

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CONSOLIDATED STATEMENTS OF TOTAL EQUITY (UNAUDITED) (Dollars in millions)

	Common stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total controlling interest's equity			Non- controlling interest		Total equity
Balances at December 31, 2022	$	91		$	1,113		$	2,310		$	(522	)	$	(379	)	$	2,613		$	13	$	2,626
Comprehensive Income:
Net income								74									74			0		74
Foreign currency translation    adjustment											36						36			0		36
Pension liability											(0	)					(0	)				(0	)
Total Comprehensive Income		—			—			74			35			—			110			0		110
Stock repurchased and retired		(0	)		(9	)		(33	)					(0	)		(42	)				(42	)
Stock-based compensation														3			3					3
Cash dividends declared								(57	)								(57	)				(57	)
Balances at March 31, 2023	$	91		$	1,105		$	2,295		$	(487	)	$	(376	)	$	2,627		$	14	$	2,641

	Common stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total controlling interest's equity			Non- controlling interest		Total equity
Balances at December 31, 2021	$	103		$	1,329		$	2,742		$	(408	)	$	(1,133	)	$	2,633		$	15	$	2,648
Comprehensive Loss:
Net income								83									83			0		83
Foreign currency translation   adjustment											6						6			0		6
Pension liability											8						8					8
Total Comprehensive Income		—			—			83			14			—			97			0		98
Retired and repurchased shared		(0	)		(4	)		(13	)								(18	)				(18	)
Stock-based compensation														2			2					2
Cash dividends declared								(56	)								(56	)				(56	)
Balances at March 31, 2022	$	103		$	1,325		$	2,755		$	(393	)	$	(1,131	)	$	2,659		$	15	$	2,674

See Notes to the unaudited Condensed Consolidated Financial Statements.

8

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise noted, all amounts are presented in millions of dollars, except for per share amounts)

March 31, 2023

1. BASIS OF PRESENTATION

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited consolidated financial statements and all adjustments considered necessary for a fair presentation have been included in the consolidated financial statements. All such adjustments are of a normal recurring nature. The results for the interim period are not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2023.

The Condensed Consolidated Balance Sheet as of December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements.

The Company has one reportable segment, which includes Autoliv’s airbag and seatbelt products and components.

Certain amounts in the condensed consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. Certain amounts in prior periods have been reclassified to conform to current year presentation.

Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 16, 2023.

9

2. NEW ACCOUNTING STANDARDS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”).

Adoption of new accounting standards

In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50), Disclosure of Supplier Finance Program Obligations, which requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. During the fiscal year of adoption, the information on the key terms of the programs and the balance sheet presentation of the program obligations, which are annual disclosure requirements, should be disclosed in each interim period. The amendments in this update should be applied retrospectively to each period in which a balance sheet is presented, except for the amendment on roll-forward information, which should be applied prospectively.

The Company adopted ASU 2022-04 as of January 1, 2023. The Company has an agreement with an external payment service provider to facilitate the payments to certain suppliers. The outstanding obligations confirmed towards the external payment service provider are recorded in Accounts Payable in the Condensed Consolidated Balance Sheet until payment has been effected. The Company has undertaken to make sure the payment is effected on the original invoice maturity date. The payment terms range between 30 days and 165 days, with a weighted average of 130 days.

The roll-forward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the three month period ended March 31, 2023 is as follows (dollars in millions):

	As of
	March 31, 2023			December 31, 2022
Confirmed obligations outstanding at beginning of the period	$	314		n/a
Invoices confirmed during the period		335		n/a
Confirmed invoices paid during the period		(362	)	n/a
Confirmed obligations outstanding at end of the period1)	$	287		$	314

1) Amount of obligations confirmed under the program that remains unpaid by the Company is reported as Accounts Payable in the Condensed Consolidated Balance Sheet.

Accounting standards issued but not yet adopted

None.

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3. FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and other current financial assets and liabilities approximate their fair value because of the short-term maturity of these instruments.

The Company uses derivative financial instruments (“derivatives”) as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest rates and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. For certain derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although each hedge is entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest rates and foreign exchange rates.

The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value.

All the Company’s derivatives are classified as Level 2 financial instruments in the fair value hierarchy. Level 2 pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (“ISDA agreements”) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 have been presented on a gross basis. According to the ISDA agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company chose not to offset are presented below.

Derivatives designated as hedging instruments

There were no derivatives designated as hedging instruments as of March 31, 2023 or December 31, 2022 related to the Company's operations.

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Derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives not designated as hedging instruments outstanding as of March 31, 2023 and December 31, 2022 were foreign exchange swaps.

For the three months period ended March 31, 2023 and March 31, 2022, the gains (losses) recognized in other non-operating items, net were $(5) million and $9 million, respectively, for derivative instruments not designated as hedging instruments. The realized part of the losses referred to above is reported under financing activities in the statement of cash flows.

For the three months period ended March 31, 2023 and March 31, 2022, the gains (losses) recognized as interest expense were immaterial.

The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).

	As of
	March 31, 2023									December 31, 2022
				Fair Value Measurements									Fair Value Measurements
Description	Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)			Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)
Derivatives not designated as hedging    instruments
Foreign exchange swaps, less    than 6 months	$	2,688	1)	$	33	2)	$	17	3)	$	2,616	4)	$	22	5)	$	15	6)
Total derivatives not designated    as hedging instruments	$	2,688		$	33		$	17		$	2,616		$	22		$	15

1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,688 million.

2) Net amount after deducting for offsetting swaps under ISDA agreements is $33 million.

3) Net amount after deducting for offsetting swaps under ISDA agreements is $17 million.

4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,616 million.

5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.

6) Net amount after deducting for offsetting swaps under ISDA agreements is $15 million.

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Fair Value of Debt

The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy.

During the first quarter of 2023, the Company issued a five year €500 million Eurobond. These notes were issued as green bonds.

The fair value and carrying value of debt is summarized in the table below (dollars in millions).

	As of
	March 31, 2023				December 31, 2022
	Carrying value1)		Fair value		Carrying value1)		Fair value
Long-term debt
Bonds	$	1,311	$	1,298	$	767	$	735
Loans		290		294		287		292
Total long-term debt		1,601		1,592		1,054		1,027
Short-term debt
Short-term portion of long-term debt		545		541		533		527
Overdrafts and other short-term debt		33		33		178		178
Total short-term debt	$	577	$	574	$	711	$	705

1) Debt as reported in balance sheet.

Assets and liabilities measured at fair value on a nonrecurring basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis, including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment.

The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets.

For the three months period ended March 31, 2023 and March 31, 2022, the Company did not record any material impairment charges on its long-lived assets for its operations.

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4. INCOME TAXES

The effective tax rate for the three months period ended March 31, 2023 was 31.6% compared to 30.3% for the three months period ended March 31, 2022. Discrete tax items, net for the three months period ended March 31, 2023 had an unfavorable impact of 0.8%. Discrete tax items, net for the three months period ended March 31, 2022 had an unfavorable impact of 0.6%.

The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2015. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2012.

As of March 31, 2023, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods.

During the three months period ended March 31, 2023, the Company recorded a net increase of $2 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits from prior years. Of the total unrecognized tax benefits of $48 million recorded as of March 31, 2023, $12 million is classified as current tax payable within Other current liabilities and $36 million is classified as non-current tax payable within Other non-current liabilities on the Condensed Consolidated Balance Sheet.

5. INVENTORIES

Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):

	As of
	March 31, 2023			December 31, 2022
Raw materials	$	449		$	445
Work in progress		356			350
Finished products		273			265
Inventories		1,078			1,060
Inventory valuation reserve		(92	)		(91	)
Total inventories, net of reserve	$	986		$	969

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6. RESTRUCTURING

As of March 31, 2023, approximately $9 million out of the $29 million in total reserve balance can be attributed to footprint optimization activities in Europe initiated in the third quarter of 2020. These activities are expected to be concluded in 2023. The cash payments for the three months period ended March 31, 2023 relate to restructuring activities in Europe. The provision charge and cash payments for the three months period ended March 31, 2022 mainly related to footprint optimization activities in Asia.

The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.

	Three Months Ended March 31,
	2023			2022
Reserve at beginning of the period	$	32		$	88
Provision - charge		2			12
Provision - reversal		(0	)		(0	)
Cash payments		(5	)		(41	)
Translation difference		1			(1	)
Reserve at end of the period	$	29		$	58

7. PRODUCT-RELATED LIABILITIES

The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues, including recalls, product liability and warranty issues. For further explanation, see Note 9. Contingent Liabilities below.

For the three months period ended March 31, 2023, provisions and cash payments primarily relate to warranty related issues. For the three months period ended March 31, 2022, provisions and cash payments primarily related to warranty related issues. As of March 31, 2023, the reserve for product related liabilities mainly relate to recall related issues.

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product related liabilities is included in accrued expenses and Other non-current liabilities on the Condensed Consolidated Balance Sheets. A majority of the Company’s product-related liabilities as of March 31, 2023 are covered by insurance. Insurance receivables are included within Other current assets and Other non-current assets on the Condensed Consolidated Balance Sheets. As of March 31, 2023, the Company had total insurance receivables of $140 million.

	Three Months Ended March 31,
	2023			2022
Reserve at beginning of the period	$	145		$	144
Change in reserve		1			9
Cash payments		(5	)		(3	)
Translation difference		0			(0	)
Reserve at end of the period	$	141		$	150

15

8. RETIREMENT PLANS

The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows (dollars in millions):

U.S. Plans	Three Months Ended March 31,
	2023			2022
Interest cost	$	3		$	2
Expected return on plan assets		(2	)		(4	)
Amortization of actuarial loss		0			0
Settlement loss		0			1
Net periodic benefit cost	$	1		$	(1	)
Non-U.S. Plans	Three Months Ended March 31,
	2023			2022
Service cost	$	2		$	3
Interest cost		2			1
Expected return on plan assets		(1	)		(0	)
Amortization of actuarial loss		0			0
Settlement gain		—			(1	)
Net periodic benefit cost	$	3		$	3

The Service cost component in the table above is reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components - Interest cost, Expected return on plan assets, Amortization of actuarial loss, Settlement loss (gain) and Curtailment gain - are reported as Other non-operating items, net in the Consolidated Statements of Income.

Settlement accounting has been triggered for the primary U.S. pension plan in the first quarter of 2023 because the lump-sum payments made during the quarter exceeded the sum of Service cost and Interest cost for this U.S. plan. Due to the settlement accounting, the obligation and plan assets for the primary U.S. plan have been re-measured as of March 31, 2023, which resulted in an immaterial change in the net pension liability compared to December 31, 2022. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from 5.41% to 5.09% in the first quarter of 2023. The expected long-term rate of return on plan asset is unchanged at 5.05%.

16

9. CONTINGENT LIABILITIES

Legal Proceedings

Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in the future.

ANTITRUST MATTERS

Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products that the Company sells. In addition to concluded matters, authorities of other countries with significant light vehicle manufacturing or sales may initiate similar investigations.

PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY

Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. Recall decisions regarding the Company’s products may require a significant amount of judgment by us, our customers and safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost of a recall is also subject to a significant amount of judgment and discussions between the Company and its customers. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer in either a warranty or a recall situation. Accordingly, the future costs of warranty or recall claims by the customers may be material. However, the Company believes its established reserves are adequate. Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates.

In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations.

The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based on our prior claims experience. The Company’s insurance policies generally include coverage of the costs of a recall, although costs related to replacement parts are generally not covered. In addition, a number of the agreements entered into by the Company, including the Spin-off Agreements, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses or with respect to other obligations, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend, increase or otherwise adjust our insurance.

17

Product Liability:

On September 18, 2014, Jamie Andrews filed a wrongful death products liability suit against several Autoliv entities stemming from a fatal car accident in 2013 where the plaintiff’s husband was fatally injured. The lawsuit alleges that Autoliv should be liable for a defectively-designed driver seatbelt. The case was removed to the United States District Court for the Northern District of Georgia. The suit originally included Bosch and Mazda entities as well, but these entities were dismissed pursuant to confidential settlement agreements with the plaintiff, and all of the Autoliv entities except Autoliv Japan Ltd. were also dismissed. On January 10, 2017, the District Court entered an order granting summary judgment in favor of Autoliv, concluding that Autoliv was not actively involved in the design of Mr. Andrews’s seatbelt and, therefore, should not be liable for plaintiff’s claims as a matter of law. However, on appeal, the Eleventh Circuit Court of Appeals reversed the decision, holding that, under Georgia’s products liability statute, Autoliv could be liable for a design defect associated with the seatbelt, regardless of its level of involvement in the seatbelt’s ultimate design, because Autoliv manufactured it. On October 4, 2021, the case proceeded to a bench trial before the United States District Court for the Northern District of Georgia. On December 31, 2021, the District Court entered a Final Order and Judgment concluding that Mr. Andrews’s seatbelt was defectively designed and Autoliv was strictly liable for the design. In doing so, the District Court concluded that Mr. Andrews had incurred $27,019,343 in compensatory damages, but only ordered Autoliv to pay 50 percent of that amount, $13,509,671 after finding that 50 percent of the fault for Mr. Andrews’s damages should be apportioned to Mazda. The Court declined to apportion any fault for Mr. Andrews’s damages to Mr. Andrews or Bosch. The District Court also entered an award of punitive damages against Autoliv in the amount of $100,000,000. Subsequently, on September 30, 2022, the District Court awarded pre-judgment interest on the compensatory damages award of approximately $4,734,350.

The Company believes the District Court's verdict was in error, including the grossly high punitive damages award, and appealed the verdict. Ms. Andrews has also initiated a cross-appeal.

The Company has determined that a loss with respect to this litigation is probable and has in the fourth quarter of 2021 accrued $14 million pursuant to ASC 450. The Company accrued an additional $5 million for the pre-judgement interest in the third quarter of 2022. The accrual is reflected in the total product liability accrual. This amount reflects the low end of the range of a probable loss of $18 million to $118 million. The accrual reflects the Company’s best estimate of the probable loss based on currently available information and does not include any amount for the punitive damages. It is reasonably possible that the Company may have to pay the entire damages awarded by the District Court. The Company believes that its insurance should cover all of the types of damages awarded by the District Court, and has therefore recognized a receivable, included within Other non-current assets on the Consolidated Balance Sheets for the expected insurance proceeds. However, the extent of the Company's insurance coverage for punitive damages in this matter is uncertain and may be less than all of such punitive damages ultimately awarded. In the event all or a portion of the punitive damages award survives the Company's appeal, the Company will continue to engage with its insurance carriers and aggressively pursue all potential recoveries. The ultimate loss to the Company of the litigation matter could be materially different from the amount the Company has accrued. The Company cannot predict or estimate the duration or ultimate outcome of this matter.

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Specific Recalls:

In the fourth quarter of 2020, the Company was made aware of a potential recall by American Honda Motor Co. and the recall of approximately 449,000 vehicles relating to the malfunction of front seat belt buckles was announced on March 9, 2023 (the “Honda Buckle Recall”). The Company determined pursuant to ASC 450 that a loss with respect to the Honda Buckle Recall is probable and accrued an amount that is reflected in the total product liability accrual in the fourth quarter of 2020 and increased the accrual in the fourth quarter of 2021. The amount by which the product liability accrual exceeds the product liability insurance receivable with respect to the Honda Buckle Recall is $27 million and includes self-insurance retention costs and deductibles. The ultimate loss to the Company of the Honda Buckle Recall could be materially different from the amount the Company has accrued.

Volvo Car USA, LLC (together with its affiliates, “Volvo”) has recalled approximately 762,000 vehicles relating to the malfunction of inflators produced by ZF (the “ZF Inflator Recall”). The recalled ZF inflators were included in airbag modules supplied by the Company only to Volvo. The recall commenced in November 2020 and later expanded in September 2021. Because the Company’s airbags were involved with the ZF Inflator Recall, the Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the ZF Inflator Recall. The Company continues to evaluate this matter with Volvo and ZF and no accrual has been made. Although the Company currently estimates a range of $0 to $43 million with respect to this potential loss, the Company anticipates that any losses net of insurance claims and claims against ZF will be immaterial.

Intellectual Property:

In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material.

The table in Note 7 above summarizes the change in the balance sheet position of the product-related liabilities.

10. STOCK INCENTIVE PLAN

Eligible employees and non-employee directors of the Company participate in the Autoliv, Inc.1997 Stock Incentive Plan, as amended, (“the Plan”), and receive Autoliv stock-based awards which include stock options (“SOs”), restricted stock units (“RSUs”) and performance stock units (“PSUs”).

For the three months period ended March 31, 2023, the Company recorded approximately $3 million in stock-based compensation expense related to RSUs and PSUs. For the three months period ended March 31, 2022, the Company recorded approximately $2 million in stock-based compensation expense related to RSUs and PSUs.

During the three months period ended March 31, 2023, approximately 92 thousand shares of common stock from the treasury stock were utilized by the Plan. During the three months period ended March 31, 2022, approximately 122 thousand of common stock from the treasury stock were utilized by the Plan.

11. EARNINGS PER SHARE

The computation of basic and diluted earnings per share is set forth in the table below. Anti-dilutive shares outstanding were immaterial for all periods presented below.

	Three Months Ended March 31,
(In millions, except per share amounts)	2023		2022
Numerator:
Basic and diluted:
Net income attributable to controlling interest	$	74	$	83
Denominator:
Basic: Weighted average common stock		86.1		87.5
Add: Weighted average stock options/share awards		0.2		0.2
Diluted weighted average common stock:		86.3		87.8
Net earnings per share - basic	$	0.86	$	0.95
Net earnings per share - diluted	$	0.86	$	0.94

19

12. REVENUE DISAGGREGATION

The Company’s disaggregated revenue for the three months period ended March 31, 2023 and 2022 were as follows (dollars in millions).

Net Sales by Products	Three Months Ended March 31,
	2023		2022
Airbags, Steering Wheels and Other1)	$	1,673	$	1,381
Seatbelt Products1)		820		744
Total net sales	$	2,493	$	2,124
Net Sales by Region	Three Months Ended March 31,
	2023		2022
China	$	453	$	447
Asia, excluding China		483		410
Americas		831		692
Europe		725		575
Total net sales	$	2,493	$	2,124

1) Including Corporate and other sales.

Contract Balances

Contract assets relate to the Company's rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts and is included in Other current assets in the Condensed Consolidated Balance Sheet. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. The net change in the contract assets balance, reflecting the adjustments needed to align revenue recognition for work completed but not billed, for the three months period ended March 31, 2023 and March 31, 2022, were not material in any period.

13. SUBSEQUENT EVENTS

There were no reportable events subsequent to March 31, 2023.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and accompanying Notes thereto included elsewhere herein and with our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the United States Securities and Exchange Commission (the “SEC”) on February 16, 2023. Unless otherwise noted, all dollar amounts are in millions.

Autoliv, Inc. (“Autoliv” or the “Company”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden. The Company functions as a holding corporation and owns two principal operating subsidiaries, Autoliv AB and Autoliv ASP, Inc.

Through its operating subsidiaries, Autoliv is a supplier of automotive safety systems with a broad range of product offerings, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts, steering wheels and pedestrian protection systems.

Autoliv’s filings with the SEC, including this Quarterly Report on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K, proxy statements and all of our other reports and statements, and amendments thereto, are available free of charge on our corporate website at www.autoliv.com as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC (generally the same day as the filing).

The primary exchange market for Autoliv’s securities is the New York Stock Exchange ("NYSE") where Autoliv’s common stock trades under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts ("SDRs") are traded on Nasdaq Stockholm’s list for large market cap companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on Nasdaq OMX PHLX and on NYSE Amex Options under the symbol “ALV”.

Autoliv’s fiscal year ends on December 31.

Non-U.S. GAAP financial measures

Some of the following discussions refer to non-U.S. GAAP financial measures: see reconciliations for “Organic sales”, “Trade working capital”, “Free cash flow”, “Net debt”, “Leverage ratio”, “Adjusted operating income”, “Adjusted operating margin” and “Adjusted earnings per share, diluted” provided below. Management believes that these non-U.S. GAAP financial measures provide supplemental information to investors regarding the performance of the Company’s business and assist investors in analyzing trends in the Company's business. Additional descriptions regarding management’s use of these financial measures are included below. Investors should consider these non-U.S. GAAP financial measures in addition to, rather than as substitutes for, financial reporting measures prepared in accordance with U.S. GAAP. These historical non-U.S. GAAP financial measures have been identified as applicable in each section of this report with a tabular presentation reconciling them to the most directly comparable U.S. GAAP financial measures. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.

21

EXECUTIVE OVERVIEW

The Company is pleased with its strong sales growth, supported by product launches and price increases, and that the Company outperformed LVP in all regions significantly. The operating margin impact of the strong sales growth was lower than it should be in the quarter. This is because new product launches normally have lower operating leverage initially. As production ramps up and stabilizes, operating leverage is expected to improve. Together with the Company's actions for cost reductions and price adjustments, this will give the significant full year profit improvement that the Company expects.

The operating environment in the first quarter of 2023 was, as expected, challenging, especially in Europe. The Company reported an adjusted operating margin in line with prior communication.

Other highlights from the quarter were that the Company's balance sheet and expected cash flow allowed for continued high shareholder returns, and that the Company issued its first ever green bond. The Company expects a strong full year cash flow, although its cash flow was temporarily week in the first quarter due to strong sales growth in March.

The Company saw continued updates of crash test standards and safety regulations in the U.S. and in India which will support continued increase in safety content per vehicle. The Company's market position is strong and is investing for increased production with a new textile facility in Vietnam. The Company also continues to look for ways to improve its footprint and to reduce its costs structurally.

The year has so far developed as expected. Like last year, inflationary pressure impacted the first quarter significantly, and in line with last year, the Company expects to offset this during the rest of the year through productivity, cost reduction actions and price adjustments.

This supports the Company's confidence in expecting a gradually improving adjusted operating margin, which should allow the Company to deliver a significant full year increase in cash flow and adjusted operating income and to reach the full year indications the Company set at the beginning of the year.

Financial highlights in the three months period ended March 31, 2023

Change figures below compare to the same period of the previous year, except when stated otherwise.

$2,493 net sales

17% net sales increase

21% organic sales increase (Non-U.S. GAAP measure, see reconciliation table below)

5.1% operating margin

5.3% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)

$0.86 EPS - 9% decrease

$0.90 adjusted EPS (Non-U.S. GAAP measure, see reconciliation table below) - 99% increase

Key business developments in the three months period ended March 31, 2023

Change figures below compare to the same period of the previous year, except when stated otherwise.

Sales increased organically (Non-U.S. GAAP measure, see reconciliation table below) by 21%, which was 15pp better than global LVP growth of 6.1% (S&P Global, April 2023). The Company outperformed significantly in all regions, mainly due to new product launches and higher prices.

Profitability in line with the Company's indication, positively impacted by price increases, organic growth and the Company's cost reduction activities. Operating income was $127 million and operating margin was 5.1%. Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) improved from $68 million to $131 million and adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below) increased from 3.2% to 5.3%, despite inflationary pressure, volatile LVP and adverse FX effects. Return on capital employed was 13.0% and adjusted return on capital employed (Non-U.S. GAAP measure, see reconciliation table below) was 13.4%.

Operating cash flow decreased from $70 million to negative $46 million, driven mainly by negative working capital effects due to the high sales growth. Free cash flow (Non-U.S. GAAP measure, see calculation table below) decreased to negative $189 million, as capex, net, increased due to capacity expansions and footprint activities. The leverage ratio (Non-U.S. GAAP measure, see calculation table below) increased from 1.4x in the fourth quarter 2022 to 1.6x, impacted by higher net debt. A dividend of $0.66 per share was paid, and 0.45 million shares were repurchased and retired in the quarter.

22

Business and market condition update

Supply Chain

Global light vehicle production growth year-over-year was around 6.1% (according to S&P Global April 2023) in Q1 2023, negatively impacted by industry supply chain disruptions. Industry supply chain disruptions also led to low customer demand visibility and material changes to customer call-offs with short notice, which negatively impacted our production efficiency and profitability in the quarter. The Company expects the current industry-wide supply chain disruptions to be a limiting factor for the global LVP in the first half year of 2023, while the Company expects that demand and supply will be in a better balance in the second half of 2023.

Inflation

In Q1 2023, cost pressures from labor, logistics, utilities and other items had a negative impact on our profitability. Rising raw material costs amounted to around 0.5pp in operating margin headwind in Q1 2023, which was largely offset by commercial customer recoveries. The Company expects the raw material price changes in 2023 will to a large extent be reflected in price changes in its products, albeit with delays of several months. The Company also expects significant cost pressure from broad based inflation relating to labor, logistics, utilities and other items, especially in Europe. The Company continues to execute on productivity and cost reduction activities to offset these cost pressures, and is continuing to have challenging discussions with its customers on non-raw material cost inflation.

Other matters

Direct COVID-19 related costs and governmental support in connection with the COVID-19 pandemic were immaterial in the first quarter of 2023.

The direct impact of the war in Ukraine on our business is limited. Autoliv has one facility with fewer than 20 employees in Russia. The Company's operations in Russia are currently suspended. Autoliv net assets in Russia consist of USD cash items, which amount to around $3 million. Autoliv has no operations in Ukraine.

23

RESULTS OF OPERATIONS

Overview

The following table shows some of the key ratios management uses internally to analyze the Company's current and future financial performance and core operations as well as to identify trends in the Company’s financial conditions and results of operations. The Company has provided this information to investors to assist in meaningful comparisons of past and present operating results and to assist in highlighting the results of ongoing core operations. These ratios are more fully explained below and should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K and the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

The Company's management uses the Return on capital employed (ROCE) and Return on total equity (ROE) measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business. As used by the Company, ROCE is annualized operating income and income from equity method investments relative to average capital employed. The Company believes ROCE is a useful indicator of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.

ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management.

KEY RATIOS

(Dollars in millions, except per share data)

	Three Months Ended
	or As of March 31,
	2023			2022
Total parent shareholders’ equity per share	$	30.61		$	30.43
Capital employed 1)		4,118			3,731
Net debt 2)		1,477			1,057
Trade working capital8)		1,409			1,352
Trade working capital relative to sales, %9)		14.1	%		15.9	%
Receivables outstanding relative to sales, %10)		21.1	%		21.5	%
Inventory outstanding relative to sales, %11)		9.9	%		10.7	%
Payables outstanding relative to sales, %12)		16.9	%		16.3	%
Gross margin, % 3)		15.2	%		13.6	%
Operating margin, % 4)		5.1	%		6.3	%
Return on total equity, % 5)		11.3	%		12.5	%
Return on capital employed, % 6)		13.0	%		14.6	%
Headcount at period-end 7)		71,300			64,800

1) Total equity and net debt.

2) Net debt adjusted for pension liabilities in relation to EBITDA. See tabular presentation reconciling this non-U.S. GAAP measure to U.S. GAAP below.

3) Gross profit relative to sales.

4) Operating income relative to sales.

5) Net income relative to average total equity.

6) Operating income and income from equity method investments, relative to average capital employed.

7) Employees plus temporary, hourly personnel.

8) Outstanding receivables and outstanding inventory less outstanding payables. See calculation of this non-U.S. GAAP measure in the table below.

9) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales.

10) Outstanding receivables relative to annualized quarterly sales.

11) Outstanding inventory relative to annualized quarterly sales.

12) Outstanding payables relative to annualized quarterly sales.

24

three months period ended March 31, 2023 COMPARED WITH three months period ended March 31, 2022

Consolidated Sales Development

(dollars in millions)

	Three Months Ended March 31,							Components of change in net sales
	2023		2022		Reported change			Currency effects 1)			Organic 3)
Airbags, Steering Wheels and Other2)	$	1,673	$	1,381		21	%		(3.6	)%		25	%
Seatbelt products 2)		820		744		10	%		(3.5	)%		14	%
Total	$	2,493	$	2,124		17	%		(3.6	)%		21	%
Asia	$	936	$	857		9.2	%		(7.8	)%		17	%
Whereof: China		453		447		1.2	%		(7.2	)%		8.4	%
Asia excl. China		483		410		18	%		(8.4	)%		26	%
Americas		831		692		20	%		2.4	%		18	%
Europe		725		575		26	%		(4.6	)%		31	%
Total	$	2,493	$	2,124		17	%		(3.6	)%		21	%

1) Effects from currency translations.

2) Including Corporate and Other sales.

3) Non-U.S. GAAP measure.

Sales by product - Airbags, Steering Wheels and Other

All major product categories increased organically (Non-U.S. GAAP measure) in the quarter. The largest contributor to the increase was inflatable curtains and steering wheels, followed by side airbags and passenger airbags.

Sales by product - Seatbelts

The main contributor to Seatbelt products organic growth (Non-U.S. GAAP measure) was Europe, followed by Asia excluding China and Americas.

Sales by region

The Company's global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 21% compared to the global LVP increase of 6.1% (according to S&P Global, April 2023). The 15pp outperformance was driven by new product launches, price increases and a positive geographical LVP mix development. Autoliv outperformed LVP by around 16pp in China, by around 14pp in Europe and in Asia excl. China and by around 7pp in Americas.

First quarter of 2023 organic growth1)

	Americas	Europe	China	Asia excl. China	Global
Autoliv	18%	31%	8.4%	26%	21%
Main growth drivers	Honda, Nissan, GM	VW, Stellantis, Renault	Lixiang Auto, Honda, BYD	Hyundia, Toyota, Nissan	Honda, Hyundai, VW
Main decline drivers	Ford, BMW	Mitsubishi	Nissan, GM, Xpeng		Ford, Xpeng, Great Wall

1) Non-U.S. GAAP measure.

Light Vehicle Production Development

Change three months period ended March 31, 2023 versus three months period ended March 31, 2022

	Americas	Europe	China	Asia excl. China	Global
LVP1)	11 %	17 %	(7.5)%	12 %	6.1 %

1) Source: S&P Global, April 2023.

25

Earnings

	Three Months Ended March 31,
(Dollars in millions, except per share data)	2023			2022			Change
Net Sales	$	2,493		$	2,124			17	%
Gross profit		379			288			32	%
% of sales		15.2	%		13.6	%		1.6	pp
S, G&A		(132	)		(115	)		14	%
% of sales		(5.3	)%		(5.4	)%		0.1	pp
R, D&E, net		(116	)		(107	)		8.7	%
% of sales		(4.7	)%		(5.0	)%		0.4	pp
Amortization of Intangibles		(0	)		(1	)		(70	)%
Other income (expense), net		(4	)		70		n/a
Operating income		127			134			(5.4	)%
% of sales		5.1	%		6.3	%		(1.2)pp
Adjusted operating income1)		131			68			93	%
% of sales		5.3	%		3.2	%		2.1	pp
Financial and non-operating items, net		(18	)		(15	)		22	%
Income before taxes		109			119			(8.8	)%
Income taxes		(34	)		(36	)		(5.0	)%
Tax rate		31.6	%		30.3	%		1.3	pp
Net income		74			83			(11	)%
Earnings per share, diluted2)		0.86			0.94			(8.8	)%
Adjusted earnings per share, diluted1,2)		0.90			0.45			99	%

1) Non-U.S. GAAP measure, excluding effects from capacity alignment, including gain on sale of property in the first quarter of 2022, and antitrust related matters.

2) Assuming dilution, when applicable, and net of treasury shares.

First quarter of 2023 development

Gross profit increased by $91 million and the gross margin increased by 1.6pp compared to the same quarter 2022. The gross profit increase was primarily driven by price increases, volume growth and lower costs for premium freight. This was partly offset by increased costs for personnel to manage the high customer call-off volatility as well as to prepare for higher sales levels expected in coming quarters. Other adverse effects were higher costs for raw materials and unfavorable foreign currency translation effects.

S,G&A costs increased by $16 million compared to the prior year, mainly due to increased costs for personnel and projects, partly offset by positive currency translation effects. S,G&A costs in relation to sales decreased from 5.4% to 5.3%.

R,D&E, net costs increased by around $9 million compared to the prior year, mainly due to higher costs for personnel, partly offset by positive foreign currency translation effects. R,D&E, net, in relation to sales decreased from 5.0% to 4.7%.

Other income (expense), net was negative $4 million compared to $70 million in the prior year. The prior year was positively impacted by around $80 million from the sale of a property in Japan.

Operating income decreased by $7 million compared to the same period in 2022, mainly as a consequence of the change in Other income (expense) and the higher costs for S,G&A and R,D&E, net, partly offset by the higher gross profit.

Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by $63 million compared to the prior year, mainly due to higher gross profit, partly offset by the higher costs for S,G&A and R,D&E, net.

Financial and non-operating items, net, was negative $18 million compared to negative $15 million a year earlier, mainly due to increased interest expense as an effect of higher debt and higher interest rates.

Income before taxes decreased by $11 million compared to the prior year, mainly due to the lower operating income.

Tax rate was 31.6% compared to 30.3% in the same period last year. Discrete tax items, net, increased the tax rate this quarter by 0.8pp. Discrete tax items increased the tax rate by 0.6pp in the same period last year.

Earnings per share, diluted decreased by $0.08 compared to a year earlier. The main drivers were $0.52 from capacity alignments and $0.05 from taxes, partly offset by $0.51 from higher adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below).
 

26

LIQUIDITY AND CAPITAL RESOURCES

The Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on its financial position, results of operations or cash flows. The Company’s future contractual obligations have not changed materially from the amounts reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 16, 2023.

First quarter of 2023 development

Trade working capital (Non-U.S. GAAP measure, see calculation table below) increased by $57 million compared to the same period last year, where the main drivers were $282 million in higher receivables and $73 million in higher inventories, partly offset by $298 million in higher accounts payables.

Operating cash flow decreased by $116 million to negative $46 million compared to the same period last year, mainly due to negative working capital effects.

Capital expenditure, net increased by $126 million, mainly due to the impact on the prior year of $95 million from the sale of property, plant and equipment, but also due to increased investments related to capacity expansions and footprint activities. Capital expenditure, net in relation to sales was 5.7% vs. 0.8% a year earlier.

Free cash flow (Non-U.S. GAAP measure, see calculation table below) was negative $189 million, compared to $53 million in the same period prior year. The decline was due to the lower operating cash flow and higher capital expenditure, net.

Cash conversion (Non-U.S. GAAP measure) defined as free cash flow (Non-U.S. GAAP measure, see calculation table below) in relation to net income, was not meaningful in the period as free cash flow was negative.

Net debt (Non-U.S. GAAP measure, see reconciliation table below) was $1,477 million as of March 31, 2023, which was $420 million higher than a year earlier.

Liquidity position. As of March 31, 2023, our cash balance was around $0.7 billion, and including committed, unused loan facilities, our liquidity position was around $1.8 billion.

Leverage ratio (Non-U.S. GAAP measure, see calculation table below). As of March 31, 2023, the Company had a leverage ratio of 1.6x compared to 1.4x as of March 31, 2022, as the net debt (Non-U.S. GAAP measure, see reconciliation table below) increased proportionally more than the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure, see calculation table below) increased.

Total equity decreased by $33 million compared to March 31, 2022. This is mainly due to $225 million in dividend payment and stock repurchases of $139 million as well as $106 million in adverse currency translation effects, partly offset by $416 million from net income.

NON-U.S. GAAP MEASURES

The Company believes that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures exclusive of these items. Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non-U.S. GAAP measure.

Reconciliation of U.S. GAAP financial measures to “Adjusted operating income”, “Adjusted operating margin” and “Adjusted Earnings per share, diluted”

(Dollars in millions, except per share data)

	Three Months Ended March 31, 2023									Three Months Ended March 31, 2022
	Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP			Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP
Operating income	$	127		$	4		$	131		$	134		$	(66	)	$	68
Operating margin, %		5.1	%		0.2	%		5.3	%		6.3	%		(3.1	)%		3.2	%
Earnings per share, diluted	$	0.86		$	0.03		$	0.90		$	0.94		$	(0.49	)	$	0.45

1) Effects from capacity alignments, including gain on sale of property in the first quarter of 2022, and antitrust related matters.

27

Items included in Non-U.S. GAAP adjustments

(Dollars in millions, except per share data)

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Millions			Per share			Millions			Per share
Capacity alignments	$	3		$	0.04		$	(66	)	$	(0.76	)
Legal costs		1			0.01			—			—
Total adjustments to operating income		4			0.05			(66	)		(0.76	)
Tax on non-U.S. GAAP adjustments1)		(1	)		(0.01	)		23			0.26
Total adjustments to net income	$	3		$	0.03		$	(43	)	$	(0.49	)

1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s).

The Company uses the non-U.S. GAAP measure “Trade working capital,” as defined in the table below, in its communications with investors and for management’s review of the development of the trade working capital cash generation from operations. The reconciling items used to derive this measure are, by contrast, managed as part of the Company’s overall cash and debt management, but they are not part of the responsibilities of day-to-day operations’ management.

Calculation of “Trade working capital”

(Dollars in millions)

	March 31, 2023			December 31, 2022			March 31, 2022
Receivables, net	$	2,106		$	1,907		$	1,824
Inventories, net		986			969			913
Accounts payable		(1,683	)		(1,693	)		(1,385	)
Trade working capital	$	1,409		$	1,183		$	1,352

The non-U.S. GAAP measure “Net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses this measure to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. For details on leverage ratio refer to the table below.

Reconciliation of U.S. GAAP financial measure to “Net debt”

(Dollars in millions)

	March 31, 2023			December 31, 2022			March 31, 2022
Short-term debt	$	577		$	711		$	347
Long-term debt		1,601			1,054			1,647
Total debt		2,179			1,766			1,994
Cash and cash equivalents		(713	)		(594	)		(938	)
Debt issuance cost/Debt-related derivatives, net		12			12			1
Net debt	$	1,477		$	1,184		$	1,057

Management uses the non-U.S. GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. The Company's long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is 1.0x with the aim to operate within the range of 0.5x to 1.5x. For details and calculation of leverage ratio, refer to the table below.

28

Calculation of “Leverage ratio”

(Dollars in millions)

	March 31, 2023			December 31, 2022			March 31, 2022
Net debt1)	$	1,477		$	1,184		$	1,057
Pension liabilities		159			154			172
Debt per the Policy		1,636			1,338			1,229
Net income2)		416			425			363
Income taxes 2)		176			178			153
Interest expense, net2,3)		60			54			53
Other non-operating items, net2)		4			5			5
Income from equity method investments2)		(4	)		(3	)		(2	)
Depreciation and amortization of intangibles2)		359			363			391
Capacity alignments and antitrust related matters2)		10			(61	)		(58	)
EBITDA per the Policy (Adjusted EBITDA)	$	1,021		$	961		$	905
Leverage ratio		1.6			1.4			1.4

1) Net debt (non-U.S. GAAP measure) is short- and long-term debt and debt-related derivatives, less cash and cash equivalents.

2) Latest 12-months.

3) Interest expense, net including cost for extinguishment of debt, if any, less interest income.

Management uses the non-U.S. GAAP measure free cash flow to analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on the calculation of free cash flow, see the table below.

Calculation of “Free Cash Flow”

(Dollars in millions)

	Three Months Ended March 31,
	2023			2022
Net income	$	74		$	83
Changes in operating working capital		(202	)		(18	)
Depreciation and amortization		92			95
Gain on divestiture of property		—			(80	)
Other, net		(10	)		(11	)
Operating cash flow		(46	)		70
Capital expenditure, net		(143	)		(17	)
Free cash flow1)	$	(189	)	$	53
1) Operating cash flow less Capital expenditures, net.

Headcount

	March 31, 2023			December 31, 2022			March 31, 2022
Total headcount		71,300			69,100			64,800
Whereof:
Direct personnel in manufacturing		52,700			50,600			47,000
Indirect personnel		18,600			18,400			17,800
Temporary personnel		11.1	%		10.6	%		9.4	%

By March 31, 2023, total headcount increased by 6,500 compared to a year earlier. The indirect workforce increased by 4.5% while the direct workforce increased by 12%, as sales grew organically by 21% compared to a year earlier. The increase also reflects preparations for the expected sales growth in coming quarters.

Compared to December 31, 2022, total headcount increased by around 2,200, direct workforce increased by around 2,100 and the indirect workforce increased by around 200.

29

Full year 2023 indications

The Company's outlook indications for 2023 are mainly based on its customer call-offs, a full year 2023 global LVP growth of around 3%, that the Company achieves its targeted cost compensation effects and that customer call-off volatility is reduced.

Financial measure	Full year indication
Organic sales growth	Around 15%
Foreign currency impact on net sales	Around 1% negative
Adjusted operating margin 1)	Around 8.5%-9%
Tax rate 2)	Around 32%
Operating cash flow 3)	Around $900 million
Capital expenditures, net % of sales	Around 6%
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items.
2) Excluding unusual tax items.
3) Excluding unusual items.

This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, April 2023. All rights reserved.

The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. The Company has not provided a U.S. GAAP reconciliation of these measures because items that impact these measures, such as costs and gains related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and the Company is unable to determine the probable significance of the unavailable information.

Other recent events

Key launches in the three months period ended March 31, 2023

•Fisker Ocean: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Knee Airbag, Steering Wheel, Front Center Airbag, Seatbelts.

•Subaru Impreza/Crosstrek: Driver/Passenger Airbags, Side Airbags, Seatbelts, Pedestrian Airbag.

•Buick Electra E5: Driver/Passenger Airbags, Side Airbags, Steering Wheel, Seatbelts.

•Jeep Avenger: Driver/Passenger Airbags, Side Airbags, Steering Wheel, Seatbelts.

•Hyundai Kona: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Front Center Airbag.

•Havel H-Dog: Side Airbags, Seatbelts.

•Xpeng P7i: Driver/Passenger Airbags, Side Airbags, Steering Wheel, Seatbelts.

•Toyota Prius: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel, Seatbelts.

•Chevrolet Trax: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel, Seatbelts.

Other Items

•On February 17, 2023, Autoliv announced the renewal for one year of its €3 billion guaranteed euro medium term note program, originally established on April 11, 2019.

•On March 9, 2023, Autoliv announced it had priced a 5-year bond offering of EUR 500 million in the Eurobond market. The notes were issued as green bonds on March 15 at a coupon of 4.25%.

•On April 20, 2023, Autoliv announced its plans to expand to Vietnam, and build a new state of the art airbag cushion and fabric plant in Vietnam. The investment in the new textile facility is in response to customer demands and is intended to meet expanded future airbag production needs for the growing Asia market.

•In Q1 2023, Autoliv repurchased and retired 0.45 million shares of common stock at an average price of $92.19 per share under the Autoliv 2022-2024 stock purchase program.

30

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of March 31, 2023, there have been no material changes to the information related to quantitative and qualitative disclosures about market risk that were provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 16, 2023.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures

An evaluation has been carried out, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective.

(b)Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

31

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the ordinary course of our business, we are subject to legal proceedings brought by or against us and our subsidiaries.

See Part I, Item 1, "Financial Statements, Note 9 Contingent Liabilities" of this Quarterly Report on Form 10-Q for a summary of certain ongoing legal proceedings. Such information is incorporated into this Part II, Item 1—"Legal Proceedings" by reference.

ITEM 1A. RISK FACTORS

As of March 31, 2023, there have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Form 10-K for the year ended December 31, 2022 filed with the SEC on February 16, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Stock repurchase program

The following table provides information with respect to common stock repurchases by the Company during the three months period ended March 31, 2023.

	New York Stock Exchange (NYSE)
Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (USD) (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3)		Maximum Number of Shares that Yet May Be Purchased Under the Plans or Programs (3)
January 1-31, 2023		—	$	—		1,440,572		15,559,428
February 1-28, 2023		219,866	$	90.98		1,660,438		15,339,562
March 1-31, 2023		230,293	$	93.38		1,890,731		15,109,269

(1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. For accounting purposes, shares repurchased under our stock repurchase programs are recorded based upon the settlement date of the applicable trade.

(2) Average price paid per share includes costs associated with the repurchases.

(3) On November 16, 2021, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to $1.5 billion or up to 17 million common shares, whichever comes first, between January 2022 and the end of 2024.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

32

ITEM 6. EXHIBITS

Exhibit No.	Description
3.1	Autoliv’s Restated Certificate of Incorporation, as amended, incorporated herein by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2015).
3.2	Autoliv’s Third Restated By-Laws, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-12933, filing date December 18, 2015).
4.1	Indenture, dated March 30, 2009, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to Autoliv’s Registration Statement on Form 8-A (File No. 001-12933, filing date March 30, 2009).
4.2	Second Supplemental Indenture (including Form of Global Note), dated March 15, 2012, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 15, 2012).
4.3	Form of Note Purchase and Guaranty Agreement dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 25, 2014).
4.4	Amendment and Waiver 2014 Note Purchase and Guaranty Agreement, dated May 24, 2018, among Autoliv, Inc., Autoliv ASP, Inc. and the noteholders named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
4.5	General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv, Inc., effective as of May 30, 2018, with Skandinaviska Enskilda Banken AB (publ) serving as a custodian, incorporated herein by reference to Exhibit 4.5 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
4.6	Agency Agreement dated June 26, 2018 among Autoliv, Inc., Autoliv ASP, Inc. and HSBC Bank PLC, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).
4.7	Base Listing Particulars Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.12 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022).
4.8	Amended and Restated Programme Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.13 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022).
4.9	Amended and Restated Agency Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.14 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022).
4.10	Base Listing Particulars Agreement, dated February 17, 2023, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 16, 2023).
4.11	Amended and Restated Programme Agreement, dated February 17, 2023, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K (File No. 001-12933, filing date March 16, 2023).
10.1*+	Form of Employee 2023 restricted stock units grant agreement promised under Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated.
10.2*+	Form of Employee 2023 performance share units grant agreement promised under the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated.
31.1*	Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
31.2*	Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
32.1*	Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

33

101.INS*	Inline XBRL Instance Document – The instance document does not appear in the Interactive Date File because its XBRL tags are embedded within the inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*	Cover Page Interactive Data File (embedded within the inline XBRL document).

* Filed herewith.

+ Management contract or compensatory plan.

34

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 21, 2023

AUTOLIV, INC.

(Registrant)

By:	/s/ Fredrik Westin
	Fredrik Westin
	Chief Financial Officer
	(Duly Authorized Officer and Principal Financial Officer)

35

EX-10

Exhibit 10.1

2023 RESTRICTED STOCK UNITS GRANT AGREEMENT

Applicable to Restricted Stock Units promised under the Autoliv, Inc., 1997 Stock Incentive Plan

(as amended and restated)

Your above-described grant of restricted stock units (“RSUs”) is subject to the following provisions in addition to those set forth in the attached Notice of Grant (the “Grant Notice”) and the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated (“the Plan”):

1. Defined Terms:

Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan. In addition, for purposes of this Grant Agreement:

a.“Cause” will have the meaning assigned such term in the employment, severance or similar agreement, if any, between you and Autoliv, Inc. (“the Company”) or one of its subsidiaries; provided, however, that if there is no such employment, severance or similar agreement in which such term is defined, “Cause” shall mean any of the following acts by you, as determined by the Company or one of its subsidiaries, as applicable, in its sole discretion: gross neglect of duty; prolonged absence from duty, as reasonably determined by the Company, without the consent of the Company or one of its subsidiaries, as applicable; your material breach of any published Company code of conduct or code of ethics; or your willful misconduct, misfeasance or malfeasance of duty which is reasonably determined to be detrimental to the Company or one of its subsidiaries.

b.“Disability” means your inability, as reasonably determined by the Company, to perform the essential functions of your regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected to last) for a period of six (6) consecutive months.

c.“EMT” means the Executive Management Team.

d.“Good Reason” shall have the meaning (i) assigned such term in the employment, severance or similar agreement, if any, between you and the Company or one of its subsidiaries, or (ii)if there is no such employment, severance or similar agreement in which such term is defined, then “Good Reason” as used herein shall mean a resignation following a Change in Control event for the purpose of Section 5(b) below due to (a) material reduction in salary, or (b) relocation of principal place of business to a location more than thirty kilometers from employment location at the time of the Change in Control.

e.“Qualifying Retirement” means your termination of employment with the Company or one of its subsidiaries at or after the earliest date you satisfy the eligibility requirements for retirement under the relevant provisions of national, state, or provincial law in your home country, provided such termination of employment (i) is approved by the Company to be a Qualifying Retirement, or (ii) if you are a member of EMT, is approved as a Qualifying Retirement in advance by the Leadership Development and Compensation Committee. Notwithstanding the foregoing, your termination of employment will not be considered a Qualifying Retirement if (i) the termination occurs within six (6) months following the Grant Date, or (ii) you are terminated for Cause by the Company or one of its subsidiaries.

2023 RSU Grant Page | 1

Exhibit 10.1

2. Vesting: The RSUs have been credited to a bookkeeping account (“Account”) on your behalf as of the grant date specified in the Grant Notice (the “Grant Date”). Your Account will reflect the number of RSUs awarded to you as set forth in the Grant Notice, as well as any additional RSUs credited as a result of dividend equivalents, as described in Section 9 below. Each RSU represents an unfunded, unsecured right to receive Common Stock, subject to the terms and conditions stated in the Plan and this Grant Agreement. Your RSUs will vest and become non-forfeitable on the earliest to occur of the following (each, a “Date of Vesting’”):

(a)as to all of the RSUs, on the Date of Vesting specified in the Grant Notice, provided that you are then still employed by the Company or one of its subsidiaries;

(b)as to all of the RSUs, upon the termination of your employment by reason of death, Disability or a Qualifying Retirement.

If your employment terminates for any reason other than as described in (b) above, you will forfeit all right, title and interest in and to the unvested RSUs as of the date of such termination, and the unvested RSUs will be reconveyed to the Company without further consideration or any act or action by you.

3. Conversion to Shares of Common Stock; Procedure at Date of Vesting:

(a)Unless the RSUs are forfeited prior to the Date of Vesting as provided in Section 2 above, the RSUs will be converted on the Date of Vesting to actual shares of Common Stock. The shares of Common Stock to be issued pursuant to this Grant Agreement shall be issued in the form of book-entry shares of Common Stock in your name as the beneficial owner as of the Date of Vesting.

(b)You will, if requested, within the specified time set forth in any such request (not to exceed 30 days), deliver to the Company such written representations and undertakings as may, in the opinion of the Company’s legal counsel, be necessary or desirable to comply with tax and securities laws.

4. Securities Law Restrictions; Insider Trading Policy:

You may not offer, sell or otherwise dispose of any shares of Common Stock in a manner which would violate any applicable laws, including, without limitation, the laws of Sweden, U.S. federal and state securities laws, U.S. federal law, the requirements of any stock exchange or quotation system upon which the Common Stock may then be listed or quoted and any laws of any other country or jurisdiction that may be applicable to you.

In connection with receipt of this Grant Agreement, you acknowledge that you are subject to the Company’s AS 314 Insider Trading Policy which may be found on the Company’s intranet at “Functions, Legal” or is available upon request to the Legal department of the Company.

2023 RSU Grant Page | 2

Exhibit 10.1

5. Change in Control of the Company:

Notwithstanding any provision herein to the contrary, your RSUs shall be immediately vested in full under the following situations:

a.If (i) a Change in Control occurs prior to the Date of Vesting and while you are employed by the Company or one of its subsidiaries, and (ii) the surviving entity is not a public company with shares listed on a public stock exchange, , then as of the effective date of the Change in Control, your RSUs shall be immediately vested in full.

b.If (i) a Change in Control occurs prior to the Date of Vesting and while you are employed by the Company or one of its subsidiaries, (ii) the RSUs are assumed and equitably converted by the surviving entity which is a publicly traded company with shares listed on a public stock exchange, and (iii) within two (2) years after the effective date of the Change in Control your employment is terminated by the Company or one of its subsidiaries without Cause or, if applicable, you resign for Good Reason, then as of your date of termination, your equitably converted RSUs shall immediately vest in full if they have not vested by that date.

6. Non-Transferability:

Your RSUs are personal to you and shall not be transferable by you otherwise than by will or the laws of descent and distribution.

7. Conformity with Plan:

Your RSUs are intended to conform in all respects with the Plan, including any future amendments thereto. Inconsistencies between this Grant Agreement and the Plan shall be resolved in accordance with the terms of the Plan. All definitions stated in the Plan shall be fully applicable to this Grant Agreement.

8. Employment and Successors:

Nothing herein or in the Grant Notice or in the Plan confers any right or obligation on you to continue in the employ of the Company or any subsidiary or shall affect in any way your right or the right of the Company or any subsidiary, as the case may be, to terminate your employment at any time. This Grant Agreement, the Grant Notice, and the Plan, including any future amendments thereto, shall be binding upon you, your estate, any person succeeding to your rights hereunder and any successor or successors of the Company. The RSUs do not confer to you or any person succeeding to your rights hereunder any rights of a shareholder of the Company unless and until shares of Common Stock are in fact issued to you or such person in connection with the settlement of the RSUs.

2023 RSU Grant Page | 3

Exhibit 10.1

9. Dividend Equivalent Rights:

Subject to share availability under the Plan, any cash dividend paid with respect to the Common Stock for which the record date occurs on or after the Grant Date and the payment date occurs on or before the Date of Vesting will result in a credit to your Account of additional RSUs equal to (a) the dollar amount of the dividend per share of Common Stock multiplied by the number of RSUs credited to your Account as of the applicable record date, divided by (b) the closing price per share of the Common Stock on the New York Stock Exchange on the applicable dividend payment date. The additional RSUs credited pursuant to this Section 9 will be subject to the same vesting schedule, forfeiture and other terms that apply to the original RSUs. RSUs that, at the relevant dividend payment date, previously have been settled or forfeited will not be eligible to receive dividend equivalents pursuant to this Section 9.

10. Tax:

You are totally responsible for paying all taxes that you incur in respect of this Grant. The Company has the authority and the right to deduct or withhold, or require you to remit, an amount sufficient to satisfy all applicable taxes required by law to be withheld with respect to any taxable event arising as a result of vesting or settlement of the RSUs. The withholding requirement may be satisfied, in whole or in part, by withholding from the settlement of the RSUs, shares of Common Stock having a fair market value on the date of withholding equal to the minimum amount (and not any greater amount unless such other withholding rate will not cause an adverse accounting consequence or cost) required to be withheld for tax purposes, all in accordance with such procedures as the Company establishes. The obligations of the Company hereunder will be conditional on such payment, and the Company will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to you.

11. Governing Law:

This Grant Agreement, the Grant Notice, and the Plan shall be construed in accordance with and governed by the laws of the State of Delaware, USA, and, to the extent relevant, the local laws of your home country.

2023 RSU Grant Page | 4

Exhibit 10.1

12. Severability:

If any one or more of the provisions contained in this Grant Agreement are invalid, illegal or unenforceable, the other provisions of this Grant Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

13. Recoupment Policy; Agreement to Repayments of Incentive Compensation When Payments Are Required Under Federal Law:

The Company’s policy regarding “Return of Compensation in Restatement Situations” is incorporated herein these terms. Such policy also may be found on the Company’s intranet at “LifeNet/Functions/Human Resources/HR Standards.” In connection with receipt of this Grant Agreement, you acknowledge that you are subject to such policy. In addition, the RSUs shall be subject to any future compensation recoupment policy that the Company may adopt from time to time, as required by law or otherwise, to the extent applicable.

This provision applies to any policy adopted by the New York Stock Exchange (or any other exchange on which the securities of the Company are listed) pursuant to Section 10D of the Securities Exchange Act of 1934. Section 10D provides for the recovery of incentive-based compensation that has been erroneously paid because of material errors in financial statements of the Company. To the extent such policy requires the repayment of incentive-based compensation received by you, whether paid pursuant to this Grant Agreement or any other plan of incentive-based compensation maintained in the past or adopted in the future by the Company, you agree to the repayment of such amounts to the extent required by such policy.

14. Executive Stock Ownership Requirements:

In connection with receipt of this Grant Agreement, you acknowledge that you are subject to the Company’s policy regarding “Stock Ownership Policy for Executives”, if you are a member of the EMT.

15. Fractional Shares

No fractional shares of Common Stock, nor the cash value of any fractional shares of Common Stock will be issuable or payable to you pursuant to this Agreement. On the Date of Vesting, the aggregate number of RSUs shall be rounded down to the nearest whole share.

2023 RSU Grant Page | 5

Exhibit 10.1

16. U.S. Taxpayers

Notwithstanding anything in this Agreement to the contrary, this Section 16(a) shall apply only if your RSUs constitute “deferred compensation” under Section 409A of the Internal Revenue Code and the regulations promulgated thereunder (“Section 409A”).

a. If Section 5(a) becomes operative and you are a U.S. taxpayer for the taxable year in which the Change in Control occurs, then the Change in Control must meet any definition of “change in control event” in Section 409A (without giving effect to any elective provisions that may be available under such definition).

b.If your RSUs become payable upon your termination of employment pursuant to Section 5(b) hereof (or otherwise) and you are a U.S. taxpayer for the taxable year in which your termination of employment occurs, then (i) the circumstances giving rise to your termination of employment must meet any definition of “separation from service” in Section 409A (without giving effect to any elective provisions that may be available under such definition) and (ii) if you are a “specified employee” of the Company (as defined in Section 409A) as of the date of your termination of employment, vested RSUs will be delivered to you on the first day of the seventh month following the date of your termination of employment (or if earlier, upon death); provided, however, that such delay shall be implemented only to the extent necessary in order to avoid the imposition of taxes under Section 409A; and further provided that you have otherwise complied with the requirements for such delivery of vested shares as provided herein.

2023 RSU Grant Page | 6

EX-10

Exhibit 10.2

2023 PERFORMANCE SHARE UNITS GRANT AGREEMENT

Applicable to Performance Share Units promised under the Autoliv, Inc., 1997 Stock Incentive Plan (as amended and restated)

Your above-described grant of performance share units (the “PSUs”) is subject to the following provisions, in addition to those set forth in the attached Notice of Grant (the “Grant Notice”): and the Autoliv, Inc. 1997 Stock Incentive Plan (“the Plan”):

1. Defined Terms:

Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan. In addition, for purposes of this Grant Agreement:

a.“Cause” will have the meaning assigned such term in the employment, severance or similar agreement, if any, between you and Autoliv, Inc. (the “Company”) or one of its subsidiaries; provided, however, that if there is no such employment, severance or similar agreement in which such term is defined, “Cause” shall mean any of the following acts by you, as determined by the Company or one of its subsidiaries, as applicable, in its sole discretion: gross neglect of duty, as reasonably determined by the Company, prolonged absence from duty without the consent of the Company or one of its subsidiaries, as applicable; your material breach of any published Company code of conduct or code of ethics; or your willful misconduct, misfeasance or malfeasance of duty which is reasonably determined to be detrimental to the Company or one of its subsidiaries.

b.“Committee” means the Leadership Development and Compensation Committee of the Autoliv Inc. Board of Directors.

c.“Confirmed PSUs” means the number of PSUs earned, if any, based on the Committee’s certification of the Company’s level of attainment of the Performance Objectives for each Performance Period. The Committee shall determine and certify the Company’s level of attainment of the Performance Objectives as soon as practicable following each Performance Period with respect to Tranche A, Tranche B and Tranche C.

d.“Date of Vesting” means the earlier of (i) the date set by the Committee, (ii) the date the Board of Directors approves the Company’s 10-K report after the Committee certifies the Company’s level of attainment of the Performance Objectives for the final Performance Period (i.e. the Performance Period with respect to Tranche C), (iii) the date on which a Change of Control occurs as described in Section 5(a) below provided that, except as otherwise stated herein, you are then still employed by the Company or one of its subsidiaries; (iv) the date on which a Change in Control occurs as described in Section 5(c) below, in the case of completed Performance Periods only, provided that, except as otherwise stated herein, you are then still employed by the Company or one of its subsidiaries; or (v) the date on which your employment with the Company or one of its subsidiaries terminates by reason of your death, Disability or Qualifying Retirement as provided in Section 2(b) below, in the case of completed Performance Periods only.

e.“Disability” means your inability, as reasonably determined by the Company, to perform the essential functions of your regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected to last) for a period of six (6) consecutive months.

f.“EMT” means the Executive Management Team.

2023 PSU Grant Page | 1

Exhibit 10.2

g.“Good Reason” shall have the meaning (i) assigned such term in the employment, severance or similar agreement, if any, between you and the Company or one of its subsidiaries, or (ii) if there is no such employment, severance or similar agreement in which such term is defined, then “Good Reason” as used herein shall mean a resignation following a Change in Control event for the purpose of Section 5(b) below due to (a) material reduction in salary, or (b) relocation of principal place of business to a location more than thirty kilometers from employment location at the time of the Change in Control,.

h.“Performance Objectives” shall have the meaning set forth in Exhibit A hereto.

i.“Performance Period” and “Performance Periods” shall have the meaning set forth in Exhibit A hereto.

j.“Qualifying Retirement” means your termination of employment with the Company or one of its subsidiaries at or after the earliest date you satisfy the eligibility requirements for retirement under the relevant provisions of national, state, or provincial law in your home country, provided such termination of employment (i) is approved by the Company to be a Qualifying Retirement, or (ii) if you are a member of EMT, is approved as a Qualifying Retirement in advance by the Committee. Notwithstanding the foregoing, your termination of employment will not be considered a Qualifying Retirement if (i) the termination occurs within six (6) months following the Grant Date, or (ii) you are terminated for Cause by the Company or one of its subsidiaries.

k.“Target Award” is the target number of shares of Common Stock subject to this award divided into three tranches (e.g. A, B, and C), as set forth in your Grant Notice, as well as any additional PSUs credited as a result of dividend equivalents, as described in Section 9 below.

2. Vesting; Termination of Employment:

a.The PSUs have been credited to a bookkeeping account (“Account”) on your behalf as of the grant date specified in the Grant Notice (the “Grant Date”). Your Account will reflect the number of PSUs awarded to you as set forth in the Grant Notice, as well as any additional PSUs credited as a result of dividend equivalents, as described in Section 9 below. Each PSU represents an unfunded, unsecured right to receive Common Stock, subject to the terms and conditions stated in the Plan and this Grant Agreement. The Confirmed PSUs in your account will be earned in whole, in part, or not at all, on the Date of Vesting to the extent that the Performance Objectives are attained, as provided on Exhibit A attached hereto, provided that, except as otherwise stated herein, you are then still employed by the Company or one of its subsidiaries. For the avoidance of doubt, except as otherwise provided in Section 2(b) below or Section 5(c) below, Confirmed PSUs for completed Performance Periods shall remain subject to vesting until the conclusion of the Performance Period for Tranche C, subject to your continued employment by the Company or one of its subsidiaries on such date. Any PSUs that fail to vest in accordance with the terms of this Grant Agreement will be forfeited and reconveyed to the Company without further consideration or any act or action by you.

b.If your employment with the Company or one of its subsidiaries terminates by reason of your death, Disability or Qualifying Retirement prior to the Date of Vesting, then (i) with respect to completed Performance Period(s), you or, as the case may be, your estate, will earn the Confirmed PSUs for the respective completed Performance Period(s), if any, as of the date of your termination; and (ii) with respect to in-process Performance Periods or Performance Periods that have not yet commenced as of the date of your termination, if any, you or, as the case may be, your estate, will retain such PSUs and such PSUs may be earned, in whole, in part, or not at all, on the Date of Vesting to the extent that the Performance Objectives provided on Exhibit A attached hereto are attained.

c.If your employment terminates for any reason prior to the Date of Vesting other than as described in subsection (b) above or Section (b) below, you will forfeit all right, title and interest in and to the PSUs (including any Confirmed PSUs with respect to completed Performance Periods) as of the date of such termination and such PSUs will be reconveyed to the Company without further consideration or any act or action by you.

2023 PSU Grant Page | 2

Exhibit 10.2

3. Conversion to Shares of Common Stock; Procedure at Date of Vesting:

a.Unless the PSUs are forfeited prior to the Date of Vesting as provided in Section 2 above, the Confirmed PSUs in your Account will be converted on the Date of Vesting to actual shares of Common Stock. The shares of Common Stock to be issued pursuant to this Grant Agreement shall be issued in the form of book-entry shares of Common Stock in your name as the beneficial owner as of the Date of Vesting.

4. Securities Law Restrictions; Insider Trading Policy:

You may not offer, sell or otherwise dispose of any shares of Common Stock in a manner which would violate any applicable laws, including, without limitation, the laws of Sweden, U.S. federal and state securities laws, U.S. federal law, the requirements of any stock exchange or quotation system upon which the Common Stock may then be listed or quoted and any laws of any other country or jurisdiction that may be applicable to you.

In connection with receipt of this Grant Agreement, you acknowledge that you are subject to the Company’s AS 314 Insider Trading Policy. Such policy may be found on the Company’s intranet at “Functions, Legal” or is available upon request to the Legal department of the Company.

5. Change in Control of the Company:

Notwithstanding any provision herein to the contrary, your PSUs shall be immediately vested under the following situations.

a.If (i) a Change in Control occurs during a Performance Period and while you are employed by the Company or one of its subsidiaries, and (ii) the surviving entity is not a public company with shares listed on a public stock exchange then, as of the effective date of the Change in Control, your PSUs related to such in-process Performance Period and any Performance Period(s) that has not yet commenced, if any, shall be immediately vested at the Target Award level. For example, if (i) a Change in Control occurs during the Tranche B Performance Period while you are employed by the Company or one of its subsidiaries, and (ii) the surviving entity is not a public company with shares listed on a public stock exchange, then, as of the effective date of the Change in Control, the Tranche B PSUs and the Tranche C PSUs shall be immediately vested at the Target Award level.

b.If (i) a Change in Control occurs during a Performance Period and while you are employed by the Company or one of its subsidiaries, (ii) the PSUs are assumed and equitably converted by the surviving entity which is a publicly traded company with shares listed on a public stock exchange, and (iii) within two (2) years after the effective date of the Change in Control your employment is terminated by the Company or one of its subsidiaries without Cause or, if applicable, you resign for Good Reason, then as of your date of termination, you will retain the PSUs related to such in-process Performance Period and any Performance Period(s) that has not yet commenced and such PSUs may be earned, in whole, in part, or not at all, on the Date of Vesting to the extent that the Performance Objectives provided on Exhibit A attached hereto are attained. For example, if (i) a Change in Control occurs during the Tranche B Performance Period and while you are employed by the Company or one of its subsidiaries, (ii) the PSUs are assumed and equitably converted by the surviving entity which is a publicly traded company with shares listed on a public stock exchange, and (iii) within two (2) years after the effective date of the Change in Control your employment is terminated by the Company or one of its subsidiaries without Cause or, if applicable, you resign for Good Reason, then as of your date of termination, you will retain the Tranche B PSUs and the Tranche C PSUs, and such PSUs may be earned, in whole, in part, or not at all, on the Date of Vesting to the extent that the Performance Objectives provided on Exhibit A attached hereto are attained.

2023 PSU Grant Page | 3

Exhibit 10.2

c.If a Change in Control occurs after completion of a Performance Period, then, as of the effective date of the Change in Control, the Confirmed PSUs for such completed Performance Period shall become immediately vested.

6. Non-Transferability:

Your PSUs are personal to you and shall not be transferable by you otherwise than by will or the laws of descent and distribution.

7. Conformity with Plan:

Your PSUs are intended to conform in all respects with the Plan, including any future amendments thereto. Inconsistencies between this Grant Agreement and the Plan shall be resolved in accordance with the terms of the Plan. All definitions stated in the Plan shall be fully applicable to this Grant Agreement.

8. Employment and Successors:

Nothing herein or in the Grant Notice or in the Plan confers any right or obligation on you to continue in the employ of the Company or any subsidiary or shall affect in any way your right or the right of the Company or any subsidiary, as the case may be, to terminate your employment at any time. This Grant Agreement, the Grant Notice, and the Plan, including any future amendments thereto, shall be binding upon you, your estate, any person succeeding to your rights hereunder and any successor or successors of the Company. The PSUs do not confer to you or any person succeeding to your rights hereunder any rights of a shareholder of the Company unless and until shares of Common Stock are in fact issued to you or such person in connection with the settlement of the PSUs.

9. Dividend Equivalent Rights:

Subject to share availability under the Plan, any cash dividend paid with respect to the Common Stock for which the record date occurs on or after the Grant Date and the payment date occurs on or before the Date of Vesting will result in a credit to your Account of additional PSUs equal to (a) the dollar amount of the dividend per share of Common Stock multiplied by the number of PSUs credited to your Account as of the applicable record date, divided by (b) the closing price per share of the Common Stock on the New York Stock Exchange on the applicable dividend payment date. The additional PSUs credited pursuant to this Section 9 will be subject to the same vesting schedule, forfeiture and other terms that apply to the original PSUs. PSUs that, at the relevant dividend payment date, previously have been settled or forfeited will not be eligible to receive dividend equivalents pursuant to this Section 9.

10. Tax:

You are totally responsible for paying all taxes that you incur in respect of this Grant. The Company has the authority and the right to deduct or withhold, or require you to remit, an amount sufficient to satisfy all applicable taxes required by law to be withheld with respect to any taxable event arising as a result of vesting or settlement of the PSUs. The withholding requirement may be satisfied, in whole or in part, by withholding from the settlement of the PSUs, shares of Common Stock having a fair market value on the date of withholding equal to the minimum amount (and not any greater amount unless such other withholding rate will not cause an adverse accounting consequence or cost) required to be withheld for tax purposes, all in accordance with such procedures as the Company establishes. The obligations of the Company hereunder will be conditional on such payment, and the Company will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to you.

11. Governing Law:

This Grant Agreement, the Grant Notice, and the Plan shall be construed in accordance with and governed by the laws of the State of Delaware, USA, and, to the extent relevant, the local laws of your home country.

2023 PSU Grant Page | 4

Exhibit 10.2

12. Severability:

If any one or more of the provisions contained in this Grant Agreement are invalid, illegal or unenforceable, the other provisions of this Grant Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

13. Recoupment Policy; Agreement to Repayments of Incentive Compensation When Payments Are Required Under Federal Law:

The Company’s policy regarding “Return of Compensation in Restatement Situations” is incorporated herein these terms. Such policy also may be found on the Company’s intranet at “LifeNet/Functions/Human Resources/HR Standards.” In connection with receipt of this Grant Agreement, you acknowledge that you are subject to such policy. In addition, the PSUs shall be subject to any future compensation recoupment policy that the Company may adopt from time to time, as required by law or otherwise, to the extent applicable.

This provision applies to any policy adopted by the New York Stock Exchange (or any other exchange on which the securities of the Company are listed) pursuant to Section 10D of the Securities Exchange Act of 1934. Section 10D provides for the recovery of incentive-based compensation that has been erroneously paid because of material errors in financial statements of the Company.

To the extent such policy requires the repayment of incentive-based compensation received by you, whether paid pursuant to this Grant Agreement or any other plan of incentive-based compensation maintained in the past or adopted in the future by the Company, you agree to the repayment of such amounts to the extent required by such policy.

14. Executive Stock Ownership Requirements:

If you are a member of the EMT, you acknowledge that you are subject to the Company’s policy regarding “Stock Ownership Policy for Executives” in connection with receipt of this Grant Agreement.

15. Confidentiality:

By accepting this Grant, you agree (a) to keep this Grant Agreement and all of its provisions, as well as any ancillary materials related to this Grant provided to you, confidential; (b) not to disclose the contents thereof to anyone except your attorney, your immediate family or your financial consultant (“Permitted Persons”), provided such Permitted Persons agree in advance to keep such information confidential and not disclose it to others; and (c) not to use the contents thereof for any purpose other than the interpretation of this Grant. If you or any Permitted Person violate the terms and conditions of this Section 15, the PSUs will be forfeited as of the date of such violation, and the PSUs will be reconveyed to the Company without further consideration or any act or action by you. In addition, violations of this Section 15 may result in potential civil or criminal penalties under the US federal securities laws. Anything herein to the contrary notwithstanding, you shall not be restricted from: (i) disclosing information that is required to be disclosed by law, court order or other valid and appropriate legal process; provided, however, that in the event such disclosure is required by law, you shall provide the Company with prompt notice of such requirement so that the Company may seek an appropriate protective order prior to any such required disclosure by you; and (ii) reporting possible violations of federal, state, or local law or regulation to any governmental agency or entity, or from making other disclosures that are protected under the whistleblower provisions of federal, state, or local law or regulation, and you shall not need the prior authorization of the Company to make any such reports or disclosures and shall not be required to notify the Company that you have made such reports or disclosures.

16. Fractional Shares

No fractional shares of Common Stock, nor the cash value of any fractional shares of Common Stock, will be issuable or payable to you pursuant to this Agreement. On the Date of Vesting, the aggregate number of Confirmed PSUs shall be rounded down to the nearest whole share.

2023 PSU Grant Page | 5

Exhibit 10.2

17. U.S. Taxpayers

Notwithstanding anything in this Agreement to the contrary, this Section 17(a) shall apply only if your PSUs constitute “deferred compensation” under Section 409A of the Internal Revenue Code and the regulations promulgated thereunder (“Section 409A”).

a. If Section 5(a) becomes operative and you are a U.S. taxpayer for the taxable year in which the Change in Control occurs, then the Change in Control must meet any definition of “change in control event” in Section 409A (without giving effect to any elective provisions that may be available under such definition).

b.If your PSUs become payable upon your termination of employment by reason of your Qualifying Retirement as provided in Section 2(b)(i) or pursuant to Section 5(b) hereof (or otherwise) and you are a U.S. taxpayer for the taxable year in which your termination of employment occurs, then (i) the circumstances giving rise to your termination of employment must meet any definition of “separation from service” in Section 409A (without giving effect to any elective provisions that may be available under such definition) and (ii) if you are a “specified employee” of the Company (as defined in Section 409A) as of the date of your termination of employment, vested PSUs will be delivered to you on the first day of the seventh month following the date of your termination of employment (or if earlier, upon death); provided, however, that such delay shall be implemented only to the extent necessary in order to avoid the imposition of taxes under Section 409A; and further provided that you have otherwise complied with the requirements for such delivery of vested shares as provided herein.

2023 PSU Grant Page | 6

EX-31

Exhibit 31.1

CERTIFICATION

of the Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Mikael Bratt, certify that:

1.I have reviewed this quarterly report on Form 10-Q of AUTOLIV, INC.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

April 21, 2023

/s/ Mikael Bratt

Mikael Bratt

President and Chief Executive Officer

EX-31

Exhibit 31.2

CERTIFICATION

of the Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Fredrik Westin, certify that:

1.I have reviewed this quarterly report on Form 10-Q of AUTOLIV, INC.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

April 21, 2023

/s/ Fredrik Westin

Fredrik Westin

Chief Financial Officer

EX-32

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report on Form 10-Q of Autoliv, Inc. (the “Company”) for the period ended March 31, 2023, filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mikael Bratt, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

April 21, 2023

/s/ Mikael Bratt

Mikael Bratt

President and Chief Executive Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report on Form 10-Q of Autoliv, Inc. (the “Company”) for the period ended March 31, 2023, filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Fredrik Westin, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

April 21, 2023

/s/ Fredrik Westin

Fredrik Westin

Chief Financial Officer

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 17, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Trading Symbol	ALV
Security Exchange Name	NYSE
Entity Registrant Name	AUTOLIV, INC.
Entity Central Index Key	0001034670
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock (par value $1.00 per share)
Entity Common Stock, Shares Outstanding		85,829,804
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	001-12933
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0378542
Entity Address, Address Line One	Klarabergsviadukten 70, Section B7
Entity Address, Address Line Two	Box 70381
Entity Address, City or Town	Stockholm
Entity Address, Country	SE
Entity Address, Postal Zip Code	SE-107 24
City Area Code	+46 8
Local Phone Number	587 20 600
Document Quarterly Report	true
Document Transition Report	false

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales		$ 2,493	$ 2,124
Type of Revenue [Extensible List]		us-gaap:ProductMember	us-gaap:ProductMember
Cost of sales		$ (2,113)	$ (1,836)
Type of Cost, Good or Service [Extensible List]		us-gaap:ProductMember	us-gaap:ProductMember
Gross profit		$ 379	$ 288
Selling, general and administrative expenses		(132)	(115)
Research, development and engineering expenses, net		(116)	(107)
Amortization of intangibles		0	(1)
Other income (expense), net1)	[1]	(4)	70
Operating income		127	134
Income from equity method investment		2	1
Interest income		2	1
Interest expense		(19)	(13)
Other non-operating items, net		(2)	(4)
Income before income taxes		109	119
Income tax expense		(34)	(36)
Net income	[2]	74	83
Less: Net income attributable to non-controlling interest		0	0
Net income attributable to controlling interest		$ 74	$ 83
Net earnings per share - basic		$ 0.86	$ 0.95
Net earnings per share - diluted		$ 0.86	$ 0.94
Weighted average number of shares outstanding, net of treasury shares (in millions)		86.1	87.5
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions)		86.3	87.8
Cash dividend per share - declared		$ 0.66	$ 0.64
Cash dividend per share – paid		$ 0.66	$ 0.64

[1] The three months period ending March 31, 2022, includes a gain on sale of property of $80 million in Japan.

[2] For the three months period ended March 31, 2023 and March 31, 2022, the aggregate transaction gain (loss) included in net income for the period were $(5) million and $(6) million, respectively.

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CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Gain on sale of property	[1]	$ (4)	$ 70
Gain (loss) on aggregate transactions		$ (5)	(6)
Property gain Japan
Gain on sale of property			$ 80

[1] The three months period ending March 31, 2022, includes a gain on sale of property of $80 million in Japan.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	[1]	$ 74	$ 83
Other comprehensive income before tax:
Change in cumulative translation adjustments		36	6
Net change in unrealized components of defined benefit plans		0	12
Other comprehensive income, before tax		35	18
Tax effect allocated to other comprehensive loss		0	(4)
Other comprehensive income, net of tax		35	14
Comprehensive income		110	98
Less: Comprehensive income attributable to non-controlling interest		0	0
Comprehensive income attributable to controlling interest		$ 110	$ 97

[1] For the three months period ended March 31, 2023 and March 31, 2022, the aggregate transaction gain (loss) included in net income for the period were $(5) million and $(6) million, respectively.

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions		Mar. 31, 2023		Dec. 31, 2022
Assets
Cash and cash equivalents		$ 713		$ 594
Receivables, net		2,106		1,907
Inventories, net		986		969
Prepaid expenses and accrued income		166		160
Other current assets		90		84
Total current assets		4,061		3,714
Property, plant and equipment, net		2,045		1,960
Operating lease right-of-use assets		169		160
Goodwill		1,376		1,375
Intangible assets, net		7		7
Other non-current assets		528		502
Total assets		8,185		7,717
Liabilities and equity
Short-term debt		577	[1]	711
Accounts payable		1,683		1,693
Accrued expenses		969		915
Operating lease liabilities - current		41		39
Other current liabilities		258		283
Total current liabilities		3,529		3,642
Long-term debt	[1]	1,601		1,054
Pension liability		159		154
Operating lease liabilities - non-current		127		119
Other non-current liabilities		128		121
Total non-current liabilities		2,015		1,450
Common stock		91		91
Additional paid-in capital		1,105		1,113
Retained earnings		2,295		2,310
Accumulated other comprehensive loss		(487)		(522)
Treasury stock		(376)		(379)
Total controlling interest's equity		2,627		2,613
Non-controlling interest		14		13
Total equity		2,641		2,626
Total liabilities and equity		$ 8,185		$ 7,717

[1] Debt as reported in balance sheet.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income	[1]	$ 74	$ 83
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization		92	95
Gain on divestiture of property			(80)
Other, net		(10)	(11)
Net change in operating assets and liabilities		(202)	(18)
Net cash (used in) provided by operating activities		(46)	70
Investing activities
Expenditures for property, plant and equipment		(144)	(112)
Proceeds from sale of property, plant and equipment		0	95
Net cash used in investing activities		(143)	(17)
Financing activities
Net (decrease) increase in short-term debt		(135)	9
Proceeds from long-term debt		533
Repayment of long-term debt			(10)
Dividends paid		(57)	(56)
Stock repurchased		(42)	(18)
Common stock options exercised		0	0
Net cash provided by (used in) financing activities		300	(74)
Effect of exchange rate changes on cash and cash equivalents		7	(11)
Net increase (decrease) in cash and cash equivalents		119	(31)
Cash and cash equivalents at beginning of period		594	969
Cash and cash equivalents at end of period		$ 713	$ 938

[1] For the three months period ended March 31, 2023 and March 31, 2022, the aggregate transaction gain (loss) included in net income for the period were $(5) million and $(6) million, respectively.

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CONSOLIDATED STATEMENTS OF TOTAL EQUITY (UNAUDITED) - USD ($) $ in Millions	Total		Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Treasury stock	Total controlling interest's equity	Non-controlling interest
Balance at Dec. 31, 2021	$ 2,648		$ 103	$ 1,329	$ 2,742	$ (408)	$ (1,133)	$ 2,633	$ 15
Comprehensive Loss:
Net income	83	[1]			83			83	0
Foreign currency translation adjustment	6					6		6	0
Pension liability	8					8		8
Comprehensive income	98				83	14		97	0
Stock repurchased and retired	(18)		(0)	(4)	(13)			(18)
Stock-based compensation	2						2	2
Cash dividends declared	(56)				(56)			(56)
Balance at Mar. 31, 2022	2,674		103	1,325	2,755	(393)	(1,131)	2,659	15
Balance at Dec. 31, 2022	2,626		91	1,113	2,310	(522)	(379)	2,613	13
Comprehensive Loss:
Net income	74	[1]			74			74	0
Foreign currency translation adjustment	36					36		36	0
Pension liability	0					0		0
Comprehensive income	110				74	35		110	0
Stock repurchased and retired	(42)		(0)	(9)	(33)		(0)	(42)
Stock-based compensation	3						3	3
Cash dividends declared	(57)				(57)			(57)
Balance at Mar. 31, 2023	$ 2,641		$ 91	$ 1,105	$ 2,295	$ (487)	$ (376)	$ 2,627	$ 14

[1] For the three months period ended March 31, 2023 and March 31, 2022, the aggregate transaction gain (loss) included in net income for the period were $(5) million and $(6) million, respectively.

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Basis of Presentation

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

1. BASIS OF PRESENTATION

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited consolidated financial statements and all adjustments considered necessary for a fair presentation have been included in the consolidated financial statements. All such adjustments are of a normal recurring nature. The results for the interim period are not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2023.

The Condensed Consolidated Balance Sheet as of December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements.

The Company has one reportable segment, which includes Autoliv’s airbag and seatbelt products and components.

Certain amounts in the condensed consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. Certain amounts in prior periods have been reclassified to conform to current year presentation.

Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 16, 2023.

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New Accounting Standards

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

New Accounting Standards

2. NEW ACCOUNTING STANDARDS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”).

Adoption of new accounting standards

In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50), Disclosure of Supplier Finance Program Obligations, which requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. During the fiscal year of adoption, the information on the key terms of the programs and the balance sheet presentation of the program obligations, which are annual disclosure requirements, should be disclosed in each interim period. The amendments in this update should be applied retrospectively to each period in which a balance sheet is presented, except for the amendment on roll-forward information, which should be applied prospectively.

The Company adopted ASU 2022-04 as of January 1, 2023. The Company has an agreement with an external payment service provider to facilitate the payments to certain suppliers. The outstanding obligations confirmed towards the external payment service provider are recorded in Accounts Payable in the Condensed Consolidated Balance Sheet until payment has been effected. The Company has undertaken to make sure the payment is effected on the original invoice maturity date. The payment terms range between 30 days and 165 days, with a weighted average of 130 days.

The roll-forward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the three month period ended March 31, 2023 is as follows (dollars in millions):

	As of
	March 31, 2023			December 31, 2022
Confirmed obligations outstanding at beginning of the period	$	314		n/a
Invoices confirmed during the period		335		n/a
Confirmed invoices paid during the period		(362	)	n/a
Confirmed obligations outstanding at end of the period1)	$	287		$	314

1) Amount of obligations confirmed under the program that remains unpaid by the Company is reported as Accounts Payable in the Condensed Consolidated Balance Sheet.

Accounting standards issued but not yet adopted

None.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and other current financial assets and liabilities approximate their fair value because of the short-term maturity of these instruments.

The Company uses derivative financial instruments (“derivatives”) as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest rates and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. For certain derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although each hedge is entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest rates and foreign exchange rates.

The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value.

All the Company’s derivatives are classified as Level 2 financial instruments in the fair value hierarchy. Level 2 pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (“ISDA agreements”) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 have been presented on a gross basis. According to the ISDA agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company chose not to offset are presented below.

Derivatives designated as hedging instruments

There were no derivatives designated as hedging instruments as of March 31, 2023 or December 31, 2022 related to the Company's operations.

Derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives not designated as hedging instruments outstanding as of March 31, 2023 and December 31, 2022 were foreign exchange swaps.

For the three months period ended March 31, 2023 and March 31, 2022, the gains (losses) recognized in other non-operating items, net were $(5) million and $9 million, respectively, for derivative instruments not designated as hedging instruments. The realized part of the losses referred to above is reported under financing activities in the statement of cash flows.

For the three months period ended March 31, 2023 and March 31, 2022, the gains (losses) recognized as interest expense were immaterial.

The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).

	As of
	March 31, 2023									December 31, 2022
				Fair Value Measurements									Fair Value Measurements
Description	Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)			Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)
Derivatives not designated as hedging    instruments
Foreign exchange swaps, less    than 6 months	$	2,688	1)	$	33	2)	$	17	3)	$	2,616	4)	$	22	5)	$	15	6)
Total derivatives not designated    as hedging instruments	$	2,688		$	33		$	17		$	2,616		$	22		$	15

1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,688 million.

2) Net amount after deducting for offsetting swaps under ISDA agreements is $33 million.

3) Net amount after deducting for offsetting swaps under ISDA agreements is $17 million.

4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,616 million.

5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.

6) Net amount after deducting for offsetting swaps under ISDA agreements is $15 million.

Fair Value of Debt

The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy.

During the first quarter of 2023, the Company issued a five year €500 million Eurobond. These notes were issued as green bonds.

The fair value and carrying value of debt is summarized in the table below (dollars in millions).

	As of
	March 31, 2023				December 31, 2022
	Carrying value1)		Fair value		Carrying value1)		Fair value
Long-term debt
Bonds	$	1,311	$	1,298	$	767	$	735
Loans		290		294		287		292
Total long-term debt		1,601		1,592		1,054		1,027
Short-term debt
Short-term portion of long-term debt		545		541		533		527
Overdrafts and other short-term debt		33		33		178		178
Total short-term debt	$	577	$	574	$	711	$	705

1) Debt as reported in balance sheet.

Assets and liabilities measured at fair value on a nonrecurring basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis, including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment.

The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets.

For the three months period ended March 31, 2023 and March 31, 2022, the Company did not record any material impairment charges on its long-lived assets for its operations.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

4. INCOME TAXES

The effective tax rate for the three months period ended March 31, 2023 was 31.6% compared to 30.3% for the three months period ended March 31, 2022. Discrete tax items, net for the three months period ended March 31, 2023 had an unfavorable impact of 0.8%. Discrete tax items, net for the three months period ended March 31, 2022 had an unfavorable impact of 0.6%.

The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2015. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2012.

As of March 31, 2023, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods.

During the three months period ended March 31, 2023, the Company recorded a net increase of $2 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits from prior years. Of the total unrecognized tax benefits of $48 million recorded as of March 31, 2023, $12 million is classified as current tax payable within Other current liabilities and $36 million is classified as non-current tax payable within Other non-current liabilities on the Condensed Consolidated Balance Sheet.

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Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

5. INVENTORIES

Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):

	As of
	March 31, 2023			December 31, 2022
Raw materials	$	449		$	445
Work in progress		356			350
Finished products		273			265
Inventories		1,078			1,060
Inventory valuation reserve		(92	)		(91	)
Total inventories, net of reserve	$	986		$	969

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Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring

6. RESTRUCTURING

As of March 31, 2023, approximately $9 million out of the $29 million in total reserve balance can be attributed to footprint optimization activities in Europe initiated in the third quarter of 2020. These activities are expected to be concluded in 2023. The cash payments for the three months period ended March 31, 2023 relate to restructuring activities in Europe. The provision charge and cash payments for the three months period ended March 31, 2022 mainly related to footprint optimization activities in Asia.

The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.

	Three Months Ended March 31,
	2023			2022
Reserve at beginning of the period	$	32		$	88
Provision - charge		2			12
Provision - reversal		(0	)		(0	)
Cash payments		(5	)		(41	)
Translation difference		1			(1	)
Reserve at end of the period	$	29		$	58

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Product-Related Liabilities

3 Months Ended

Mar. 31, 2023

Product Warranties Disclosures [Abstract]

Product-Related Liabilities

7. PRODUCT-RELATED LIABILITIES

The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues, including recalls, product liability and warranty issues. For further explanation, see Note 9. Contingent Liabilities below.

For the three months period ended March 31, 2023, provisions and cash payments primarily relate to warranty related issues. For the three months period ended March 31, 2022, provisions and cash payments primarily related to warranty related issues. As of March 31, 2023, the reserve for product related liabilities mainly relate to recall related issues.

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product related liabilities is included in accrued expenses and Other non-current liabilities on the Condensed Consolidated Balance Sheets. A majority of the Company’s product-related liabilities as of March 31, 2023 are covered by insurance. Insurance receivables are included within Other current assets and Other non-current assets on the Condensed Consolidated Balance Sheets. As of March 31, 2023, the Company had total insurance receivables of $140 million.

	Three Months Ended March 31,
	2023			2022
Reserve at beginning of the period	$	145		$	144
Change in reserve		1			9
Cash payments		(5	)		(3	)
Translation difference		0			(0	)
Reserve at end of the period	$	141		$	150

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Retirement Plans

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Retirement Plans

8. RETIREMENT PLANS

The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows (dollars in millions):

U.S. Plans	Three Months Ended March 31,
	2023			2022
Interest cost	$	3		$	2
Expected return on plan assets		(2	)		(4	)
Amortization of actuarial loss		0			0
Settlement loss		0			1
Net periodic benefit cost	$	1		$	(1	)
Non-U.S. Plans	Three Months Ended March 31,
	2023			2022
Service cost	$	2		$	3
Interest cost		2			1
Expected return on plan assets		(1	)		(0	)
Amortization of actuarial loss		0			0
Settlement gain		—			(1	)
Net periodic benefit cost	$	3		$	3

The Service cost component in the table above is reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components - Interest cost, Expected return on plan assets, Amortization of actuarial loss, Settlement loss (gain) and Curtailment gain - are reported as Other non-operating items, net in the Consolidated Statements of Income.

Settlement accounting has been triggered for the primary U.S. pension plan in the first quarter of 2023 because the lump-sum payments made during the quarter exceeded the sum of Service cost and Interest cost for this U.S. plan. Due to the settlement accounting, the obligation and plan assets for the primary U.S. plan have been re-measured as of March 31, 2023, which resulted in an immaterial change in the net pension liability compared to December 31, 2022. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from 5.41% to 5.09% in the first quarter of 2023. The expected long-term rate of return on plan asset is unchanged at 5.05%.

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Contingent Liabilities

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingent Liabilities

9. CONTINGENT LIABILITIES

Legal Proceedings

Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in the future.

ANTITRUST MATTERS

Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products that the Company sells. In addition to concluded matters, authorities of other countries with significant light vehicle manufacturing or sales may initiate similar investigations.

PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY

Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. Recall decisions regarding the Company’s products may require a significant amount of judgment by us, our customers and safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost of a recall is also subject to a significant amount of judgment and discussions between the Company and its customers. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer in either a warranty or a recall situation. Accordingly, the future costs of warranty or recall claims by the customers may be material. However, the Company believes its established reserves are adequate. Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates.

In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations.

The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based on our prior claims experience. The Company’s insurance policies generally include coverage of the costs of a recall, although costs related to replacement parts are generally not covered. In addition, a number of the agreements entered into by the Company, including the Spin-off Agreements, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses or with respect to other obligations, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend, increase or otherwise adjust our insurance.

Product Liability:

On September 18, 2014, Jamie Andrews filed a wrongful death products liability suit against several Autoliv entities stemming from a fatal car accident in 2013 where the plaintiff’s husband was fatally injured. The lawsuit alleges that Autoliv should be liable for a defectively-designed driver seatbelt. The case was removed to the United States District Court for the Northern District of Georgia. The suit originally included Bosch and Mazda entities as well, but these entities were dismissed pursuant to confidential settlement agreements with the plaintiff, and all of the Autoliv entities except Autoliv Japan Ltd. were also dismissed. On January 10, 2017, the District Court entered an order granting summary judgment in favor of Autoliv, concluding that Autoliv was not actively involved in the design of Mr. Andrews’s seatbelt and, therefore, should not be liable for plaintiff’s claims as a matter of law. However, on appeal, the Eleventh Circuit Court of Appeals reversed the decision, holding that, under Georgia’s products liability statute, Autoliv could be liable for a design defect associated with the seatbelt, regardless of its level of involvement in the seatbelt’s ultimate design, because Autoliv manufactured it. On October 4, 2021, the case proceeded to a bench trial before the United States District Court for the Northern District of Georgia. On December 31, 2021, the District Court entered a Final Order and Judgment concluding that Mr. Andrews’s seatbelt was defectively designed and Autoliv was strictly liable for the design. In doing so, the District Court concluded that Mr. Andrews had incurred $27,019,343 in compensatory damages, but only ordered Autoliv to pay 50 percent of that amount, $13,509,671 after finding that 50 percent of the fault for Mr. Andrews’s damages should be apportioned to Mazda. The Court declined to apportion any fault for Mr. Andrews’s damages to Mr. Andrews or Bosch. The District Court also entered an award of punitive damages against Autoliv in the amount of $100,000,000. Subsequently, on September 30, 2022, the District Court awarded pre-judgment interest on the compensatory damages award of approximately $4,734,350.

The Company believes the District Court's verdict was in error, including the grossly high punitive damages award, and appealed the verdict. Ms. Andrews has also initiated a cross-appeal.

The Company has determined that a loss with respect to this litigation is probable and has in the fourth quarter of 2021 accrued $14 million pursuant to ASC 450. The Company accrued an additional $5 million for the pre-judgement interest in the third quarter of 2022. The accrual is reflected in the total product liability accrual. This amount reflects the low end of the range of a probable loss of $18 million to $118 million. The accrual reflects the Company’s best estimate of the probable loss based on currently available information and does not include any amount for the punitive damages. It is reasonably possible that the Company may have to pay the entire damages awarded by the District Court. The Company believes that its insurance should cover all of the types of damages awarded by the District Court, and has therefore recognized a receivable, included within Other non-current assets on the Consolidated Balance Sheets for the expected insurance proceeds. However, the extent of the Company's insurance coverage for punitive damages in this matter is uncertain and may be less than all of such punitive damages ultimately awarded. In the event all or a portion of the punitive damages award survives the Company's appeal, the Company will continue to engage with its insurance carriers and aggressively pursue all potential recoveries. The ultimate loss to the Company of the litigation matter could be materially different from the amount the Company has accrued. The Company cannot predict or estimate the duration or ultimate outcome of this matter.

Specific Recalls:

In the fourth quarter of 2020, the Company was made aware of a potential recall by American Honda Motor Co. and the recall of approximately 449,000 vehicles relating to the malfunction of front seat belt buckles was announced on March 9, 2023 (the “Honda Buckle Recall”). The Company determined pursuant to ASC 450 that a loss with respect to the Honda Buckle Recall is probable and accrued an amount that is reflected in the total product liability accrual in the fourth quarter of 2020 and increased the accrual in the fourth quarter of 2021. The amount by which the product liability accrual exceeds the product liability insurance receivable with respect to the Honda Buckle Recall is $27 million and includes self-insurance retention costs and deductibles. The ultimate loss to the Company of the Honda Buckle Recall could be materially different from the amount the Company has accrued.

Volvo Car USA, LLC (together with its affiliates, “Volvo”) has recalled approximately 762,000 vehicles relating to the malfunction of inflators produced by ZF (the “ZF Inflator Recall”). The recalled ZF inflators were included in airbag modules supplied by the Company only to Volvo. The recall commenced in November 2020 and later expanded in September 2021. Because the Company’s airbags were involved with the ZF Inflator Recall, the Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the ZF Inflator Recall. The Company continues to evaluate this matter with Volvo and ZF and no accrual has been made. Although the Company currently estimates a range of $0 to $43 million with respect to this potential loss, the Company anticipates that any losses net of insurance claims and claims against ZF will be immaterial.

Intellectual Property:

In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material.

The table in Note 7 above summarizes the change in the balance sheet position of the product-related liabilities.

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Stock Incentive Plan

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Incentive Plan

10. STOCK INCENTIVE PLAN

Eligible employees and non-employee directors of the Company participate in the Autoliv, Inc.1997 Stock Incentive Plan, as amended, (“the Plan”), and receive Autoliv stock-based awards which include stock options (“SOs”), restricted stock units (“RSUs”) and performance stock units (“PSUs”).

For the three months period ended March 31, 2023, the Company recorded approximately $3 million in stock-based compensation expense related to RSUs and PSUs. For the three months period ended March 31, 2022, the Company recorded approximately $2 million in stock-based compensation expense related to RSUs and PSUs.

During the three months period ended March 31, 2023, approximately 92 thousand shares of common stock from the treasury stock were utilized by the Plan. During the three months period ended March 31, 2022, approximately 122 thousand of common stock from the treasury stock were utilized by the Plan.

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Earnings per share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings per share

11. EARNINGS PER SHARE

The computation of basic and diluted earnings per share is set forth in the table below. Anti-dilutive shares outstanding were immaterial for all periods presented below.

	Three Months Ended March 31,
(In millions, except per share amounts)	2023		2022
Numerator:
Basic and diluted:
Net income attributable to controlling interest	$	74	$	83
Denominator:
Basic: Weighted average common stock		86.1		87.5
Add: Weighted average stock options/share awards		0.2		0.2
Diluted weighted average common stock:		86.3		87.8
Net earnings per share - basic	$	0.86	$	0.95
Net earnings per share - diluted	$	0.86	$	0.94

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Revenue Disaggregation

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Disaggregation

12. REVENUE DISAGGREGATION

The Company’s disaggregated revenue for the three months period ended March 31, 2023 and 2022 were as follows (dollars in millions).

Net Sales by Products	Three Months Ended March 31,
	2023		2022
Airbags, Steering Wheels and Other1)	$	1,673	$	1,381
Seatbelt Products1)		820		744
Total net sales	$	2,493	$	2,124
Net Sales by Region	Three Months Ended March 31,
	2023		2022
China	$	453	$	447
Asia, excluding China		483		410
Americas		831		692
Europe		725		575
Total net sales	$	2,493	$	2,124

1) Including Corporate and other sales.

Contract Balances

Contract assets relate to the Company's rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts and is included in Other current assets in the Condensed Consolidated Balance Sheet. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. The net change in the contract assets balance, reflecting the adjustments needed to align revenue recognition for work completed but not billed, for the three months period ended March 31, 2023 and March 31, 2022, were not material in any period.

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Subsequent Events

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

13. SUBSEQUENT EVENTS

There were no reportable events subsequent to March 31, 2023.

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New Accounting Standards (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

New Accounting Standards

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”).

Adoption of new accounting standards

In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50), Disclosure of Supplier Finance Program Obligations, which requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. During the fiscal year of adoption, the information on the key terms of the programs and the balance sheet presentation of the program obligations, which are annual disclosure requirements, should be disclosed in each interim period. The amendments in this update should be applied retrospectively to each period in which a balance sheet is presented, except for the amendment on roll-forward information, which should be applied prospectively.

The Company adopted ASU 2022-04 as of January 1, 2023. The Company has an agreement with an external payment service provider to facilitate the payments to certain suppliers. The outstanding obligations confirmed towards the external payment service provider are recorded in Accounts Payable in the Condensed Consolidated Balance Sheet until payment has been effected. The Company has undertaken to make sure the payment is effected on the original invoice maturity date. The payment terms range between 30 days and 165 days, with a weighted average of 130 days.

The roll-forward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the three month period ended March 31, 2023 is as follows (dollars in millions):

	As of
	March 31, 2023			December 31, 2022
Confirmed obligations outstanding at beginning of the period	$	314		n/a
Invoices confirmed during the period		335		n/a
Confirmed invoices paid during the period		(362	)	n/a
Confirmed obligations outstanding at end of the period1)	$	287		$	314

1) Amount of obligations confirmed under the program that remains unpaid by the Company is reported as Accounts Payable in the Condensed Consolidated Balance Sheet.

Accounting standards issued but not yet adopted

None.

Contingent Liabilities

Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates.

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New Accounting Standards (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule Of Companys outstanding Obligations

The roll-forward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the three month period ended March 31, 2023 is as follows (dollars in millions):

	As of
	March 31, 2023			December 31, 2022
Confirmed obligations outstanding at beginning of the period	$	314		n/a
Invoices confirmed during the period		335		n/a
Confirmed invoices paid during the period		(362	)	n/a
Confirmed obligations outstanding at end of the period1)	$	287		$	314

1) Amount of obligations confirmed under the program that remains unpaid by the Company is reported as Accounts Payable in the Condensed Consolidated Balance Sheet.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Derivative Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).

	As of
	March 31, 2023									December 31, 2022
				Fair Value Measurements									Fair Value Measurements
Description	Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)			Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)
Derivatives not designated as hedging    instruments
Foreign exchange swaps, less    than 6 months	$	2,688	1)	$	33	2)	$	17	3)	$	2,616	4)	$	22	5)	$	15	6)
Total derivatives not designated    as hedging instruments	$	2,688		$	33		$	17		$	2,616		$	22		$	15

1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,688 million.

2) Net amount after deducting for offsetting swaps under ISDA agreements is $33 million.

3) Net amount after deducting for offsetting swaps under ISDA agreements is $17 million.

4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,616 million.

5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.

6) Net amount after deducting for offsetting swaps under ISDA agreements is $15 million.

Fair Value of Debt

The fair value and carrying value of debt is summarized in the table below (dollars in millions).

	As of
	March 31, 2023				December 31, 2022
	Carrying value1)		Fair value		Carrying value1)		Fair value
Long-term debt
Bonds	$	1,311	$	1,298	$	767	$	735
Loans		290		294		287		292
Total long-term debt		1,601		1,592		1,054		1,027
Short-term debt
Short-term portion of long-term debt		545		541		533		527
Overdrafts and other short-term debt		33		33		178		178
Total short-term debt	$	577	$	574	$	711	$	705

1) Debt as reported in balance sheet.

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Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Components of Inventories

Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):

	As of
	March 31, 2023			December 31, 2022
Raw materials	$	449		$	445
Work in progress		356			350
Finished products		273			265
Inventories		1,078			1,060
Inventory valuation reserve		(92	)		(91	)
Total inventories, net of reserve	$	986		$	969

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of Change in Balance Sheet Position of Employee Related Restructuring Reserves

The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.

	Three Months Ended March 31,
	2023			2022
Reserve at beginning of the period	$	32		$	88
Provision - charge		2			12
Provision - reversal		(0	)		(0	)
Cash payments		(5	)		(41	)
Translation difference		1			(1	)
Reserve at end of the period	$	29		$	58

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Product-Related Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Product Warranties Disclosures [Abstract]

Schedule of Change in Balance Sheet Position of Product-Related Liabilities

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product related liabilities is included in accrued expenses and Other non-current liabilities on the Condensed Consolidated Balance Sheets. A majority of the Company’s product-related liabilities as of March 31, 2023 are covered by insurance. Insurance receivables are included within Other current assets and Other non-current assets on the Condensed Consolidated Balance Sheets. As of March 31, 2023, the Company had total insurance receivables of $140 million.

	Three Months Ended March 31,
	2023			2022
Reserve at beginning of the period	$	145		$	144
Change in reserve		1			9
Cash payments		(5	)		(3	)
Translation difference		0			(0	)
Reserve at end of the period	$	141		$	150

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Retirement Plans (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Components of Net Periodic Benefit Cost

The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows (dollars in millions):

U.S. Plans	Three Months Ended March 31,
	2023			2022
Interest cost	$	3		$	2
Expected return on plan assets		(2	)		(4	)
Amortization of actuarial loss		0			0
Settlement loss		0			1
Net periodic benefit cost	$	1		$	(1	)
Non-U.S. Plans	Three Months Ended March 31,
	2023			2022
Service cost	$	2		$	3
Interest cost		2			1
Expected return on plan assets		(1	)		(0	)
Amortization of actuarial loss		0			0
Settlement gain		—			(1	)
Net periodic benefit cost	$	3		$	3

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Earnings per share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted EPS under Two-class Method

The computation of basic and diluted earnings per share is set forth in the table below. Anti-dilutive shares outstanding were immaterial for all periods presented below.

	Three Months Ended March 31,
(In millions, except per share amounts)	2023		2022
Numerator:
Basic and diluted:
Net income attributable to controlling interest	$	74	$	83
Denominator:
Basic: Weighted average common stock		86.1		87.5
Add: Weighted average stock options/share awards		0.2		0.2
Diluted weighted average common stock:		86.3		87.8
Net earnings per share - basic	$	0.86	$	0.95
Net earnings per share - diluted	$	0.86	$	0.94

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Revenue Disaggregation (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregated Revenue by Products and Region

The Company’s disaggregated revenue for the three months period ended March 31, 2023 and 2022 were as follows (dollars in millions).

Net Sales by Products	Three Months Ended March 31,
	2023		2022
Airbags, Steering Wheels and Other1)	$	1,673	$	1,381
Seatbelt Products1)		820		744
Total net sales	$	2,493	$	2,124
Net Sales by Region	Three Months Ended March 31,
	2023		2022
China	$	453	$	447
Asia, excluding China		483		410
Americas		831		692
Europe		725		575
Total net sales	$	2,493	$	2,124

1) Including Corporate and other sales.

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Basis of Presentation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2023 Segment
Accounting Policies [Abstract]
Number of reportable segments	1

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New Accounting Standards - Summary of Company's outstanding obligations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Accounting Changes and Error Corrections [Abstract]
Confirmed obligations outstanding at beginning of the period	$ 314
Invoices confirmed during the period	335
Confirmed invoices paid during the period	(362)
Confirmed obligations outstanding at end of the period	$ 287

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Fair Value Measurements - Additional Information (Detail) € in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2023 EUR (€)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Company Issued Eurobond | €		€ 500
Fair Value, Measurements, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset impairment charges	$ 0		$ 0
Not Designated as Hedging Instrument
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivatives designated as hedging instruments	0			$ 0
Gains (losses) recognized in other non-operating items, net	$ (5,000,000)		$ 9,000,000

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Derivative Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Not Designated as Hedging Instrument - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Mar. 31, 2023		Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Nominal volume	$ 2,688		$ 2,616
Derivative asset (Other current assets)	33		22
Derivative liability (Other current liabilities)	17		15
Less Than Six Months | Foreign Exchange Swaps
Derivatives, Fair Value [Line Items]
Nominal volume	2,688	[1]	2,616	[2]
Derivative asset (Other current assets)	33	[3]	22	[4]
Derivative liability (Other current liabilities)	$ 17	[5]	$ 15	[6]

[1] 1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,688 million.

[2] 4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,616 million.

[3] 2) Net amount after deducting for offsetting swaps under ISDA agreements is $33 million.

[4] 5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.

[5] 3) Net amount after deducting for offsetting swaps under ISDA agreements is $17 million.

[6] 6) Net amount after deducting for offsetting swaps under ISDA agreements is $15 million.

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Derivative Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Not Designated as Hedging Instrument - Foreign Exchange Swaps - Fair Value, Measurements, Recurring - Less Than Six Months - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative notional volume, amount after offsetting swaps	$ 2,688	$ 2,616
Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, amount after offsetting swaps	33	22
Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, amount after offsetting swaps	$ 17	$ 15

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Fair Value of Debt (Detail) - USD ($) $ in Millions		Mar. 31, 2023		Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	[1]	$ 1,601		$ 1,054
Short-term debt		577	[1]	711
Long-term debt, fair value		1,592		1,027
Short-term debt, fair value		574		705
Bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	[1]	1,311		767
Long-term debt, fair value		1,298		735
Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	[1]	290		287
Long-term debt, fair value		294		292
Short-Term Portion of Long-Term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term debt	[1]	545		533
Short-term debt, fair value		541		527
Overdrafts and Other Short-Term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term debt	[1]	33		178
Short-term debt, fair value		$ 33		$ 178

[1] Debt as reported in balance sheet.

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Taxes [Line Items]
Effective income tax rate	31.60%	30.30%
Increase/(decrease) in effective tax rate due to impact of discrete tax items	(0.80%)	(0.60%)
Net increase to income tax reserves for unrecognized tax benefits based on tax positions related to current and prior years	$ 2
Unrecognized tax benefits reserve that would impact effective tax rate if released into income	48
Current Tax Payable Within Other Current Liabilities
Income Taxes [Line Items]
Unrecognized tax benefits reserve that would impact effective tax rate if released into income	12
Non-Current Tax Payable Within Other Non-current Liabilities
Income Taxes [Line Items]
Unrecognized tax benefits reserve that would impact effective tax rate if released into income	$ 36

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Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 449	$ 445
Work in progress	356	350
Finished products	273	265
Inventories	1,078	1,060
Inventory valuation reserve	(92)	(91)
Total inventories, net of reserve	$ 986	$ 969

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Restructuring - Additional Information (Detail) $ in Millions	Mar. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Total restructuring reserve balance	$ 29
Footprint Optimization Activities | Europe
Restructuring Cost and Reserve [Line Items]
Total restructuring reserve balance	$ 9

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Schedule of Changes in Balance Sheet Position of Employee Related Restructuring Reserves (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]
Reserve at end of the period	$ 29
Restructuring employee-related
Restructuring Cost and Reserve [Line Items]
Reserve at beginning of the period	32	$ 88
Provision - charge	2	12
Provision - reversal	(0)	(0)
Cash payments	(5)	(41)
Translation difference	1	(1)
Reserve at end of the period	$ 29	$ 58

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Product-Related Liabilities - Additional Information (Detail) $ in Millions	Mar. 31, 2023 USD ($)
Product Warranty Liability [Line Items]
Insurance receivables	$ 140

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Summary of Change in Balance Sheet Position of Product-Related Liabilities (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Product Warranties Disclosures [Abstract]
Reserve at beginning of the period	$ 145	$ 144
Change in reserve	1	9
Cash payments	(5)	(3)
Translation difference	0	(0)
Reserve at end of the period	$ 141	$ 150

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Components of Net Periodic Benefit Cost (Detail) - Pension Plans - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
U.S. Pension Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	$ 3	$ 2
Expected return on plan assets	(2)	(4)
Amortization of actuarial loss	0	0
Settlement (gain) loss	0	1
Net Periodic Benefit Cost	1	(1)
Non-U.S. Pension Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	2	3
Interest cost	2	1
Expected return on plan assets	(1)	0
Amortization of actuarial loss	0	0
Settlement (gain) loss		(1)
Net Periodic Benefit Cost	$ 3	$ 3

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Retirement Plans - Additional Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic benefit cost	5.09%	5.41%
Pension Plan [Member] | U.S. Pension Plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected long-term rate of return on assets	5.05%

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Contingent Liabilities - Additional Information (Detail)		3 Months Ended			12 Months Ended
	Sep. 30, 2022 USD ($)	Mar. 31, 2023 USD ($) Vehicle	Sep. 30, 2022 USD ($)	Dec. 31, 2020 USD ($) Vehicle	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Lawsuit Filing Date		September 18, 2014
Loss Contingency, Name of Plaintiff		Jamie Andrews
Loss Contingency, Actions Taken by Court, Arbitrator or Mediator		In doing so, the District Court concluded that Mr. Andrews had incurred $27,019,343 in compensatory damages, but only ordered Autoliv to pay 50 percent of that amount, $13,509,671 after finding that 50 percent of the fault for Mr. Andrews’s damages should be apportioned to Mazda
Loss Contingency, Damages Sought, Value		$ (27,019,343)
Additional Punitive Damages		100,000,000
Gain (Loss) Related to Litigation Settlement					$ 14,000,000
Product liability accrual		141,000,000			144,000,000	$ 145,000,000	$ 150,000,000
Loss Contingency Accrual, Provision			$ 5,000,000
Litigation Settlement Interest	$ 4,734,350
Mazda
Loss Contingencies [Line Items]
Loss Contingency Damages To Be Paid		13,509,671
Maximum
Loss Contingencies [Line Items]
Loss Contingency, Range of Possible Loss, Portion Not Accrued					118,000,000
Minimum
Loss Contingencies [Line Items]
Loss Contingency, Range of Possible Loss, Portion Not Accrued					$ 18,000,000
Honda Buckle Recall | Damages from Product Defects
Loss Contingencies [Line Items]
Number of vehicles recalled | Vehicle				449,000
Unannounced Recall | Damages from Product Defects
Loss Contingencies [Line Items]
Product liability accrual				$ 27,000,000
ZF Inflator Recall | Maximum
Loss Contingencies [Line Items]
Estimate potential loss		43,000,000
ZF Inflator Recall | Minimum
Loss Contingencies [Line Items]
Estimate potential loss		0
ZF Inflator Recall | Damages from Product Defects
Loss Contingencies [Line Items]
Product liability accrual		$ 0
ZF Inflator Recall | Damages from Product Defects | Global
Loss Contingencies [Line Items]
Number of vehicles recalled | Vehicle		762,000

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Stock Incentive Plan - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share Based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares from treasury stock utilized by the Plan	92	122
Restricted Stock Units And Performance Stock Units
Share Based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock compensation cost	$ 3	$ 2

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Schedule of Computation of Basic and Diluted EPS under Two-class Method (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income attributable to controlling interest	$ 74	$ 83
Denominator:
Basic: Weighted average common stock	86.1	87.5
Add: Weighted average stock options/share awards	0.2	0.2
Diluted weighted average common stock:	86.3	87.8
Net earnings per share - basic	$ 0.86	$ 0.95
Net earnings per share - diluted	$ 0.86	$ 0.94

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Schedule of Disaggregated Revenue by Products and Region (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Disaggregation Of Revenue [Line Items]
Net sales		$ 2,493	$ 2,124
Airbags Steering Wheels and Other [Member]
Disaggregation Of Revenue [Line Items]
Net sales	[1]	1,673	1,381
Seatbelt Products [Member]
Disaggregation Of Revenue [Line Items]
Net sales	[1]	820	744
China
Disaggregation Of Revenue [Line Items]
Net sales		453	447
Asia, excluding China
Disaggregation Of Revenue [Line Items]
Net sales		483	410
Americas
Disaggregation Of Revenue [Line Items]
Net sales		831	692
Europe
Disaggregation Of Revenue [Line Items]
Net sales		$ 725	$ 575

[1] Including Corporate and other sales.