Product-Related Liabilities

9 Months Ended

Sep. 30, 2018

Product Warranties Disclosures [Abstract]

Product-Related Liabilities

9. PRODUCT-RELATED LIABILITIES

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 12. Contingent Liabilities below.

For the three and nine month periods ended September 30, 2018 and September 30, 2017, provisions and cash paid primarily relate to recall and warranty related issues. The decrease in the reserve balance as of September 30, 2018 compared to the prior year was mainly due to cash payments. 

Pursuant to the Spin-Off Agreements, Autoliv is also required to indemnify Veoneer for recalls related to certain qualified Electronics products. At September 30, 2018, the indemnification liabilities are approximately $23 million within accrued expenses on the Consolidated Balance Sheets and such amounts are not included in the table below. Insurance receivables are included within Other current assets in the Condensed Consolidated Balance Sheets.

The table below summarizes the change in the balance sheet position of the product-related liabilities related to the continuing operations (dollars in millions).

	Three months ended						Nine months ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Reserve at beginning of the period	$	93.3		$	92.2		$	95.6		$	90.1
Change in reserve		1.8			0.5			19.8			11.0
Cash payments		(12.9	)		(6.6	)		(32.6	)		(16.9	)
Translation difference		(0.1	)		0.4			(0.7	)		2.3
Reserve at end of the period	$	82.1		$	86.5		$	82.1		$	86.5