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 and six month periods ended June 30, 2020 and June 30, 2019, provisions and cash paid primarily relate to recall and warranty related issues. The decrease in the reserve balance as of June 30, 2020 compared to the beginning of the year was mainly due to cash payments.

Pursuant to the agreements entered into in connection with the spin-off of Veoneer, Inc. on June 29, 2018 (collectively, the “Spin-off Agreements”), Autoliv is required to indemnify Veoneer for recalls related to certain qualified Electronics products. At June 30, 2020, the indemnification liabilities are approximately $6 million within Accrued expenses on the Condensed Consolidated Balance Sheets.

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). Insurance receivables are included within Other current assets and Investments and other non-current assets on the Condensed Consolidated Balance Sheets.

	Three months ended June 30						Six months ended June 30
	2020			2019			2020			2019
Reserve at beginning of the period	$	53.5		$	60.5		$	72.1		$	62.2
Change in reserve		8.2			5.2			10.7			8.1
Cash payments		(4.2	)		(9.9	)		(24.5	)		(14.3	)
Translation difference		0.4			0.1			(0.4	)		(0.1	)
Reserve at end of the period	$	57.9		$	55.9		$	57.9		$	55.9