As discussed in Note 1, Basis of Presentation, on June 29, 2018, the Company completed the spin-off of Veoneer and the requirements for the presentation of Veoneer as a discontinued operation were met on that date. Accordingly, Veoneer’s historical financial results are reflected in the Company’s Consolidated Financial Statements as discontinued operations. The Company did not allocate any general corporate overhead or interest expense to discontinued operations.

The financial results of Veoneer are presented as loss from discontinued operations, net of income taxes in the Consolidated Statements of Income. The following table presents the financial results of Veoneer for the year 2018 (dollars in millions).

	Years ended
	December 31, 2018
Net sales	$	1,122.9
Cost of sales		(896.4	)
Gross profit		226.5
Selling, general and administrative expenses		(59.7	)
Research, development and engineering expenses, net		(224.0	)
Goodwill, Impairment charge		—
Amortization of intangibles		(10.5	)
Other income (expense), net		(53.4	)
Operating loss		(121.1	)
Loss from equity method investments		(29.9	)
Interest income		0.7
Interest expense		(0.4	)
Other non-operating items, net		0.5
Loss before income taxes		(150.2	)
Income tax (expense) benefit		(43.6	)
Loss from discontinued operations, net of income taxes		(193.8	)
Less: Net loss attributable to non-controlling interest		(8.3	)
Net loss from discontinued operations	$	(185.5	)

The Company incurred $76.3 million in separation costs related to the spin-off of Veoneer for 2018 and was reported in Other income (expense), net. These costs are primarily related to professional fees associated with planning the spin-off, as well as spin-off activities within finance, tax, legal and information system functions and certain investment banking fees incurred upon the completion of the spin-off.

In connection with the spin-off, Autoliv capitalized Veoneer with approximately $1 billion of cash. Net assets of $2,129 million were transferred to Veoneer on or prior to the Distribution Date, including $13 million of accumulated other comprehensive loss (primarily related to pension and cumulative translation adjustment) and the non-controlling interest of $112 million. This resulted in a $2,030 million reduction to retained earnings. In the second half of 2018, an adjustment to the cash contribution amount of $5 million was made reducing the net assets contributed to Veoneer to $2,123 million. In the second quarter of 2019, an adjustment of $0.2 million was made to true-up the $2.5 million contribution made to Veoneer as an adjustment of deferred tax assets related to Veoneer.

The following table presents depreciation, amortization, capital expenditures, acquisition of businesses and significant non-cash items of the discontinued operations related to Veoneer for the year 2018 (dollars in millions).

	Years ended December 31, 2018
Depreciation	$	44.8
Amortization of intangible assets		10.5
Capital expenditures		71.1
Acquisition in affiliate, net		71.0
M/A-COM earn-out adjustment		(14.0	)
Undistributed loss from equity method investment		29.9