Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Valuation of Company's Derivatives by Pricing Observability Levels

The following tables summarize the valuation of the Company’s derivatives by the above noted pricing observability levels:

			Fair Value Measurements at September 30, 2012
			Using
Description	Total carrying amount in Consolidated Balance Sheet September 30, 2012		Level 1		Level 2		Level 3
Assets
Derivatives	$	21.2		—	$	21.2		—
Total Assets	$	21.2		—	$	21.2		—
Liabilities
Derivatives	$	9.2		—	$	9.2		—
Total Liabilities	$	9.2		—	$	9.2		—

			Fair Value Measurements at December 31, 2011
			Using
Description	Total carrying amount in Consolidated Balance Sheet December 31, 2011		Level 1		Level 2		Level 3
Assets
Derivatives	$	19.7		—	$	19.7		—
Total Assets	$	19.7		—	$	19.7		—
Liabilities
Derivatives	$	0.6		—	$	0.6		—
Total Liabilities	$	0.6		—	$	0.6		—

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011. Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at September 30, 2012 and December 31, 2011, have been presented on a gross basis.

			Fair Value Measurements at September 30, 2012
Description	Nominal volume		Derivative asset		Derivative liability		Balance sheet location
Derivatives designated as hedging instruments
Interest rate swaps, less than 8 years (fair value hedge)	$	60.0	$	16.6	$	—	Other non-current asset
Total derivatives designated as hedging instruments	$	60.0	$	16.6	$	—
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	1,272.8	$	4.6	$	9.2	Other current assets/ liabilities
Total derivatives not designated as hedging instruments	$	1,272.8	$	4.6	$	9.2
Total derivatives	$	1,332.8	$	21.2	$	9.2

				Fair Value Measurements at December 31, 2011
Description	Nominal volume			Derivative asset		Derivative liability		Balance sheet location
Derivatives designated as hedging instruments
Interest rate swaps, less than 8 years (fair value hedge)	$	60.0		$	15.1	$	—	Other non-current asset
Total derivatives designated as hedging instruments	$	60.0		$	15.1	$	—
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	845.2	1)	$	4.6	$	0.6	Other current assets/ liabilities
Total derivatives not designated as hedging instruments	$	845.2		$	4.6	$	0.6
Total derivatives	$	905.2		$	19.7	$	0.6

¹⁾  The nominal value is netted for offsetting swaps with a counterpart with which Autoliv has a master netting agreement. The gross nominal value is $1,241.9 million.

Derivatives Designated as Hedging Instruments

			Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended September 30, 2012
Description	Nominal Volume		Other Financial Items, net		Interest Expense			Interest Income		Amount of gain (loss) recognized in OCI on derivative effective portion		Amount of gain (loss) reclassified from accumulated OCI into interest expense
Derivatives designated as hedging instruments
Interest rate swap, less than 8 years (fair value hedge)	$	60.0	$	—	$	0.6		$	—	$	—	$	—
Hedged item (fair value hedge)
Fixed rate private placement debt due 2019	$	60.0	$	—	$	(0.6	)	$	—	$	—	$	—
Total gain(loss) in Consolidated Statement of Income					$	0.0

			Amount of gain (loss) recognized in Consolidated Statement of Income Nine months ended September 30, 2012
Description	Nominal Volume		Other Financial Items, net		Interest Expense			Interest Income		Amount of gain (loss) recognized in OCI on derivative effective portion		Amount of gain (loss) reclassified from accumulated OCI into interest expense
Derivatives designated as hedging instruments
Interest rate swap, less than 8 years (fair value hedge)	$	60.0	$	—	$	1.5		$	—	$	—	$	—
Hedged item (fair value hedge)
Fixed rate private placement debt due 2019	$	60.0	$	—	$	(1.5	)	$	—	$	—	$	—
Total gain(loss) in Consolidated Statement of Income					$	0.0

			Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended September 30, 2011
Description	Nominal volume		Other financial items, net		Interest expense			Interest income		Amount of gain (loss) recognized in OCI on derivative effective portion		Amount of gain (loss) reclassified from accumulated OCI into interest expense
Derivatives designated as hedging instruments
Interest rate swap, less than 9 years (fair value hedge)	$	60.0	$	—	$	5.0		$	—	$	—	$	—
Total derivatives designated as hedging instruments	$	60.0
Hedged item (fair value hedge)
Fixed rate private placement debt due 2019	$	60.0	$	—	$	(5.0	)	$	—	$	—	$	—
Total gain(loss) in Consolidated Statement of Income					$	0.0

			Amount of gain (loss) recognized in Consolidated Statement of Income Nine months ended September 30, 2011
Description	Nominal volume		Other financial items, net		Interest expense			Interest income		Amount of gain (loss) recognized in OCI on derivative effective portion		Amount of gain (loss) reclassified from accumulated OCI into interest expense
Derivatives designated as hedging instruments
Interest rate swap, less than 9 years (fair value hedge)	$	60.0	$	—	$	6.0		$	—	$	—	$	—
Total derivatives designated as hedging instruments	$	60.0
Hedged item (fair value hedge)
Fixed rate private placement debt due 2019	$	60.0	$	—	$	(6.0	)	$	—	$	—	$	—
Total gain(loss) in Consolidated Statement of Income					$	0.0

Derivatives Not Designated as Hedging Instruments

			Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended September 30, 2012
Description	Nominal Volume		Other Financial Items, net		Interest Expense		Interest Income
Derivatives not designated as hedging instruments
Foreign exchange swaps	$	1,272.8	$	1.4	$	0.0	$	—
Total derivatives not designated as hedging instruments	$	1,272.8

			Amount of gain (loss) recognized in Consolidated Statement of Income Nine months ended September 30, 2012
Description	Nominal Volume		Other Financial Items, net			Interest Expense			Interest Income
Derivatives not designated as hedging instruments
Foreign exchange swaps	$	1,272.8	$	(8.5	)	$	(0.0	)	$	—
Total derivatives not designated as hedging instruments	$	1,272.8

			Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended September 30, 2011
Description	Nominal Volume		Other Financial Items, net			Interest Expense			Interest Income
Derivatives not designated as hedging instruments
Cross currency interest rate swaps, less than 1 year	$	40.3	$	(3.8	)	$	0.0		$	—
Foreign exchange swaps	$	976.2	$	28.2		$	(0.9	)	$	—
Total derivatives not designated as hedging instruments	$	1,016.5

			Amount of gain (loss) recognized in Consolidated Statement of Income Nine months ended September 30, 2011
Description	Nominal Volume		Other Financial Items, net			Interest Expense			Interest Income
Derivatives not designated as hedging instruments
Cross currency interest rate swaps, less than 1 year	$	40.3	$	(0.4	)	$	0.1		$	—
Foreign exchange swaps	$	976.2	$	15.2		$	(0.2	)	$	—
Total derivatives not designated as hedging instruments	$	1,016.5

Fair Value of Debt

Fair Value of Debt

Long-term debt	September 30, 2012 Carrying value1)		September  30, 2012 Fair value		December 31, 2011 Carrying value1)		December  31, 2011 Fair value
U.S. Private placement	$	306.6	$	337.3	$	305.1	$	331.9
Medium-term notes		46.0		44.9		43.3		40.6
Notes		107.9		108.9		—		—
Other long-term debt		36.9		36.9		15.1		15.1
Total	$	497.4	$	528.0	$	363.5	$	387.6
Short-term debt
Overdrafts and other short-term debt	$	33.9	$	33.9	$	63.2	$	63.2
Short-term portion of long-term debt		124.2		127.1		132.4		136.5
Notes		—		—		107.2		109.9
Total	$	158.1	$	161.0	$	302.8	$	309.6

1) Debt as reported in balance sheet.