FULLTEXT DEL 4 AV 4
Årsredovisning 2024
82 CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR THE YEARS ENDED DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2024 2023 2024 2023 Benefit obligation at beginning of year $ 226 $ 227 $ 208 $ 192 Service cost — — 10 9 Interest cost 11 12 12 10 Actuarial (gain) loss due to: Change in discount rate (7) 5 (1) (22) Experience (1) 2 6 (1) Other assumption changes (8) 2 3 24 Benefits paid (4) (4) (7) (10) Plan settlements/curtailments (12) (17) (9) (2) Plan amendments — — — 1 Other — — 0 0 Translation difference — — (17) 7 Benefit obligation at end of year $ 205 $ 226 $ 205 $ 208 Fair value of plan assets at beginning of year $ 204 $ 201 $ 70 $ 63 Actual return on plan assets 3 24 (4) 3 Company contributions 2 0 27 11 Benefits paid (4) (4) (7) (10) Plan settlements (12) (17) (20) (0) Translation difference — — (2) 3 Fair value of plan assets at end of year $ 194 $ 204 $ 64 $ 70 Pension liability recognized in the balance sheet $ 11 $ 21 $ 142 $ 138 The U.S. plan provides that benefits may be paid in the form of a lump sum, if so elected by the participant. In order to more accurately reflect a market-derived pension obligation, Autoliv adjusts the assumed lump sum interest rate to reflect market conditions as of each December 31. This methodology is consistent with the approach required under the Pension Protection Act of 2006, which provides the rules for determining minimum funding requirements in the U.S. COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS FOR THE YEARS ENDED DECEMBER 31 U.S. (Dollars in millions) 2024 2023 2022 Service cost $ — $ — $ — Interest cost 11 12 12 Expected return on plan assets (12) (10) (14) Amortization of actuarial loss 0 0 0 Settlement loss 1 1 6 Net periodic benefit cost $ (0) $ 3 $ 4 Non-U.S. (Dollars in millions) 2024 2023 2022 Service cost $ 10 $ 9 $ 9 Interest cost 12 10 6 Expected return on plan assets (3) (3) (2) Amortization of prior service costs 1 1 1 Amortization of actuarial loss 1 1 1 Settlement/curtailment (gain) loss 14 0 (8) Net periodic benefit cost $ 34 $ 18 $ 7 The service cost and amortization of prior service cost components are reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components, interest cost, expected returns on plan assets, amortization of actuarial loss and settlement/curtailment gains (losses), are reported as Other non-operating items, net in the Consolidated Statements of Income. Amortization of the net actuarial loss from accumulated other comprehensive income is made over the estimated average remaining lifetime of the plan participants (27 to 31 years) for the U.S. plans, and the estimated average remaining service lives or lifetimes of the plan participants for the non-U.S. plans, the periods varying over a wide range between the different countries depending on the age of the population concerned. ===== SIDA 161 ===== 83 COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS BEFORE TAX AS OF DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2024 2023 2024 2023 Net actuarial loss $ 7 $ 15 $ 29 $ 19 Prior service cost — — 3 4 Total accumulated other comprehensive loss recognized in the balance sheet $ 7 $ 15 $ 33 $ 24 CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BEFORE TAX FOR THE YEARS ENDED DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2024 2023 2024 2023 Total retirement benefit recognized in accumulated other comprehensive loss at beginning of year $ 15 $ 22 $ 24 $ 22 Net actuarial loss (gain) (7) (6) 16 2 Amortization or curtailment recognition of prior service credit (cost) — — (1) (1) Amortization or settlement recognition of net gain (loss) (1) (1) (4) (1) Translation difference — — (2) 2 Total retirement benefit recognized in accumulated other comprehensive loss at end of year $ 7 $ 15 $ 33 $ 24 The accumulated benefit obligation for the U.S. non-contributory defined benefit pension plans was $205 million and $226 million at December 31, 2024 and 2023, respectively. The accumulated benefit obligation for the non-U.S. defined benefit pension plans was $161 million and $173 million at December 31, 2024 and 2023, respectively. Pension plans for which the accumulated benefit obligation (ABO) is notably in excess of the plan assets reside in the following countries: U.S., Mexico, France, Germany, Japan, South Korea, Sweden, Thailand and Turkey. PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31 U.S. Non-U.S. (Dollars in millions) 2024 2023 2024 2023 Projected Benefit Obligation (PBO) $ 205 $ 226 $ 148 $ 145 Accumulated Benefit Obligation (ABO) 205 226 110 116 Fair value of plan assets 194 204 2 2 The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected benefit obligation and annual net periodic benefit cost. ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31 U.S. Non-U.S.1) (% Weighted average / % Weighted average range) 2024 2023 2024 2023 Discount rate 5.60 5.13 1.25-11.00 1.00-10.25 Rate of increases in compensation level n/a n/a 2.25-5.00 2.25-5.00 1) The % weighted average ranges in the tables above represent significant non-U.S. plans only. ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR THE YEARS ENDED DECEMBER 31 U.S. (% Weighted average) 2024 2023 2022 Discount rate 5.13 5.41 2.77 Rate of increases in compensation level n/a n/a n/a Expected long-term rate of return on assets 6.21 5.05 5.05 Non-U.S.1) (% Weighted average range) 2024 2023 2022 Discount rate 1.00-10.25 0.75-9.75 0.25-8.00 Rate of increases in compensation level 2.25-5.00 2.10-5.00 1.80-5.00 Expected long-term rate of return on assets 4.00-4.95 4.20-4.80 1.70-2.20 1) The % weighted average ranges in the tables above represent significant non-U.S. plans only. ===== SIDA 162 ===== 84 The discount rate for the U.S. plans has been set based on the rates of return on high-quality fixed-income investments currently available at the measurement date and expected to be available during the period the benefits will be paid. The expected timing of cash flows from the plan has also been considered in selecting the discount rate. In particular, the yields on bonds rated AA or better on the measurement date have been used to set the discount rate. The discount rate for the U.K. plan has been set based on the weighted average yields on long-term high-grade corporate bonds and is determined by reference to financial markets on the measurement date. The expected rate of increase in compensation levels and long-term rate of return on plan assets are determined based on a number of factors and must take into account long-term expectations and reflect the financial environment in the respective local market. The expected return on assets for the U.S. and U.K. plans are based on the fair value of the assets as of December 31. The level of equity exposure is currently targeted at approximately 32% for the primary U.S. plan. The investment objective is to provide an attractive risk-adjusted return that will ensure the payment of benefits while protecting against the risk of substantial investment losses. Correlations among the asset classes are used to identify an asset mix that Autoliv believes will provide the most attractive returns. Long- term return forecasts for each asset class using historical data and other qualitative considerations to adjust for projected economic forecasts are used to set the expected rate of return for the entire portfolio. The Company has assumed a long-term rate of return on the U.S. plan assets of 6.21% for calculating the 2024 expense. The Company has assumed a long-term rate of return on the non-U.S. plan assets in a range of 4.00-4.95% for 2024. The closed U.K. plan, which has a targeted allocation of almost 100% debt instruments, accounts for approximately 74% of the total non-U.S. plan assets. Autoliv made contributions to the U.S. plans during 2024 and 2023 amounting to $2 million and $0 million, respectively. Contributions to the U.K plan during 2024 and 2023 amounted to $2 million and $2 million, respectively. The Company's expected contributions to its U.S. pension plans in 2025 and the years thereafter are immaterial. For the U.K. pension plan, which is the most significant non-U.S. plan, the Company expects to contribute $2 million in 2025 and in the years thereafter. FAIR VALUE OF TOTAL PLAN ASSETS FOR THE YEARS ENDED DECEMBER 31 U.S. U.S. Non-U.S. ASSETS CATEGORY (% Weighted average) Target allocation 2024 2023 2024 2023 Equity securities % 32 30 31 0 0 Debt instruments % 68 69 68 63 64 Other assets % — 1 1 37 36 Total % 100 100 100 100 100 The following table summarizes the fair value of the Company’s U.S. and non-U.S. defined benefit pension plan assets: Fair value measurement at December 31, (Dollars in millions) 2024 2023 Assets Non-U.S. Bonds Government $ 21 $ 24 Corporate 20 21 Insurance Contracts 15 17 Other Investments 6 10 Assets at fair value Level 2 62 71 Investments measured at net asset value (NAV): Common collective trusts 195 203 Total 258 $ 274 The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Plan assets not measured using the NAV are classified as Level 2 in the table above. Plan assets measured using the NAV mainly relate to the U.S. defined benefit pension plans and are separately disclosed as Common collective trusts below the Level 2 assets in the table above. ===== SIDA 163 ===== 85 The estimated future benefit payments for the pension benefits reflect expected future service, as appropriate. The amount of benefit payments in a given year may vary from the projected amount, especially for the U.S. plan since historically this plan pays the majority of benefits as a lump sum, where the lump sum amounts vary with market interest rates. PENSION BENEFITS EXPECTED PAYMENTS (dollars in millions) U.S. Non-U.S. 2025 $ 17 $ 15 2026 19 12 2027 17 14 2028 19 14 2029 18 14 Years 2030-2034 84 85 POSTRETIREMENT BENEFITS OTHER THAN PENSIONS The Company currently provides postretirement health care and life insurance benefits to a limited group of U.S. retirees. In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. Spouses for certain retirees are also eligible for reimbursement under the plan. Life insurance coverage is available for those who elect coverage under the retiree health plan. During 2014, the plan was amended to move from a self-insured model where employees were charged an estimated premium based on anticipated plan expenses for continued coverage, to a plan where retirees are provided a fixed contribution to a Health Retirement Account (HRA). Retirees can use the HRA funds to purchase insurance through a private exchange. Employees hired on or after January 1, 2004 are not eligible to participate in the plan. As of December 31, 2024 and 2023, the benefit obligation for postretirement benefit plans other than pensions were $12 million and $13 million, respectively. The liability for postretirement benefits other than pensions is classified as other non-current liabilities in the balance sheet. The components of the net periodic benefit costs associated with these plans were immaterial for the years 2024, 2023 and 2022. The average discount rate used to determine the U.S. postretirement benefit obligation was 5.73% in 2024 and 5.16% in 2023. The average discount rate used in determining the postretirement benefit cost was 5.16% in 2024, 5.39% in 2023 and 2.91% in 2022. The accumulated other comprehensive income before tax associated with the postretirement benefit plans other than pensions recognized in the balance sheet as of December 31, 2024 and 2023 were $6 million and $6 million, respectively. The accumulated other comprehensive income consisted only of a net actuarial gain component for the years 2024 and 2023. The estimated future benefit payments for the postretirement benefits, which reflect expected future service as appropriate, are expected to be immaterial for all the future years. 20. Segment Information The Company has a single operating and reportable segment which includes Autoliv’s airbag and steering wheels and seatbelt products and components. The determination of a single operating segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker (“CODM”). The Company’s CEO, as the CODM, uses consolidated, single-segment financial information for purposes of evaluating performance, making operating decisions and allocating resources. The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers. Sales to individual customers representing 10% or more of net sales were: In 2024: No individual customer representing 10% or more. In 2023: Renault 10% (including Nissan and Mitsubishi) and Stellantis 10%. In 2022: Renault 11% (including Nissan and Mitsubishi), Stellantis 11% and VW 10%. NET SALES BY REGION (Dollars in millions) 2024 2023 2022 China $ 2,010 $ 2,105 $ 1,883 Asia, excl. China 2,010 1,968 1,638 Americas 3,424 3,526 2,967 Europe 2,946 2,877 2,355 Total $ 10,390 $ 10,475 $ 8,842 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product. ===== SIDA 164 ===== 86 External sales in the U.S. amounted to $2,075 million, $2,342 million and $2,029 million in 2024, 2023 and 2022, respectively. Of the external sales, exports from the U.S. to other regions amounted to approximately $292 million, $343 million and $298 million in 2024, 2023 and 2022, respectively. NET SALES BY PRODUCT (Dollars in millions) 2024 2023 2022 Airbag, Steering Wheels1) $ 7,023 $ 7,055 $ 5,807 Seatbelt Products1) 3,367 3,420 3,035 Total net sales $ 10,390 $ 10,475 $ 8,842 1) Including Corporate and Other sales. LONG-LIVED ASSETS (Dollars in millions) 2024 2023 China $ 621 $ 592 Asia, excl China 438 408 Americas 541 570 Europe 797 797 Total $ 2,397 $ 2,367 Long -lived assets in the table above consists of Property, Plant and Equipment and Operating Lease right-of-use asset. Long-lived assets in the U.S. amounted to $272 million and $261 million for 2024 and 2023, respectively. The CODM assesses the Company's performance and decides how to allocate resources based on consolidated net income (loss) in the Consolidated Statements of Income, which is assessed to be the segment measure of profit or loss. This measure is used to monitor actual results to evaluate the performance of the segment versus the strategic targets. The segment assets are equal to the assets presented in the Consolidated Balance Sheets. The significant expenses that are regularly provided to the CODM are disclosed in the Consolidated Statements of Net Income as a part of the consolidated net income and are as follows. Significant segment expenses / income (Dollars in millions) 2024 2023 2022 Total direct costs $ (7,050 ) $ (7,208 ) $ (6,142 ) Total production overhead costs (1,413 ) (1,446 ) (1,304 ) Cost of sales (8,463 ) (8,654 ) (7,446 ) Research, development and engineering expenses (gross) (612 ) (618 ) (595 ) Engineering income 214 193 205 Research, development and engineering expenses, net (398 ) (425 ) (390 ) Our other significant segment items that are regularly provided to the CODM include selling, general and administrative expenses, and other income (expense) which are disclosed as separate line items in the Consolidated Statements of Income. Other expenses consist of Income from equity method investments, Interest income, Interest expense, Other non-operating items, net and Income taxes, which are disclosed as separate line items in the Consolidated Statement of income. 21. Earnings Per Share The computation of basic and diluted earnings per share were as follows (dollars and shares in millions): 2024 2023 2022 Numerator: Basic and diluted: Net income attributable to common shareholders $ 646 $ 488 $ 423 Denominator: Basic weighted average common stock 80.2 85.0 87.1 Added: Weighted average stock options/share awards 0.2 0.2 0.2 Diluted weighted average common stock 80.4 85.2 87.2 Net earnings per share - basic $ 8.06 $ 5.74 $ 4.86 Net earnings per share - diluted $ 8.04 $ 5.72 $ 4.85 Anti-dilutive shares outstanding for the years ended December 31, 2024, 2023 and 2022 were immaterial. 22. Subsequent Events There were no reportable events subsequent to December 31, 2024. ===== SIDA 165 ===== 87 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure There have been no changes to and no disagreements with our independent auditors regarding accounting or financial disclosure matters in our two most recent fiscal years. Item 9A. Controls and Procedures Evaluation of Disclosure Controls and Procedures An evaluation has been carried out by the Company’s management, under the supervision and with the participation of the Company’s 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. Internal Control over Financial Reporting (a) Management’s Annual Report on Internal Control Over Financial Reporting Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s board of directors, management and other personnel 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 and includes those policies and procedures that: •pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; •provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and •provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of Autoliv’s internal control over financial reporting as of December 31, 2024. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework (2013 framework). Based on our assessment, we believe that, as of December 31, 2024, the Company’s internal control over financial reporting is effective. (b) Attestation Report of the Registered Public Accounting Firm Ernst & Young AB has issued an attestation report on the Company’s internal control over financial reporting, which is included herein as the Report of Independent Registered Public Accounting Firm under Item 8. Financial Statements and Supplementary Data for the year ended December 31, 2024. (c) 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 quarter ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. ===== SIDA 166 ===== 88 Item 9B. Other Information On November 7, 2024, Mikael Hagström, Vice President, Corporate Controller, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units in February 2025. These sales are intended to cover vesting taxes and would occur between February 24, 2025 and March 7, 2025. On November 11, 2024, Jonas Jademyr, Executive Vice President, Quality and Project Management, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units in February 2025. These sales are intended to cover vesting taxes and would occur between February 24, 2025 and March 7, 2025. On November 11, 2024, Christian Swahn, Executive Vice President, Supply Chain Management, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units in February 2025. These sales are intended to cover vesting taxes and would occur between February 24, 2025 and March 7, 2025. On November 14, 2024, Anthony Nellis, Executive Vice President, Legal Affairs, General Counsel and Secretary, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell, at a set threshold price, up to 25% of his net shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units in February 2025 after in-kind tax withholding. Such sales to occur between (i) February 21, 2025 and March 14, 2025, (ii) April 18, 2025 and June 14, 2025, (iii) July 22, 2025 and September 14, 2025, and (iv) October 21, 2025 and December 14, 2025, subject to certain conditions. On November 16, 2024, Mikael Bratt, President & Chief Executive Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of performance stock units in February 2025. These sales are intended to cover vesting taxes and would occur between February 24, 2025 and March 7, 2025. On November 20, 2024, Magnus Jarlegren, President, Autoliv Europe, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units in February 2025. These sales are intended to cover vesting taxes and would occur between February 24, 2025 and March 7, 2025. On November 21, 2024, Fabien Dumont, Chief Technology Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell 36% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units in February 2025 and March 2025. These sales are intended to cover vesting taxes and would occur between February 24, 2025 and March 7, 2025 and between March 31, 2025 and April 21, 2025. Fabien Dumont terminated the trading plan on February 12, 2025. ===== SIDA 167 ===== 89 PART III Item 10. Directors, Executive Officers and Corporate Governance The information required by Item 10. regarding executive officers, directors and nominees for election as directors of Autoliv, Autoliv’s Audit Committee, Autoliv’s code of ethics, insider trading policies and procedures, and compliance with Section 16(A) of the Securities Exchange Act is incorporated herein by reference from the information under the captions “Executive Officers of the Company” and “Proposal 1: Election of Directors”, “Committees of the Board” and “Audit and Risk Committee Report”, “Corporate Governance Guidelines and Codes of Conduct”, “Insider Trading Policies and Procedures”,and “Delinquent Section 16(a) Reports”, respectively, in the Company’s 2025 Proxy Statement. Information on Board meeting attendance is provided under the caption “Board Meetings” in the 2025 Proxy Statement and incorporated herein by reference. Item 11. Executive Compensation The information required by Item 11. regarding executive compensation for the year ended December 31, 2024 is included under the caption “Compensation Discussion and Analysis” in the 2025 Proxy Statement and is incorporated herein by reference. The information required by the same item regarding Leadership Development and Compensation Committee is included in the sections “Leadership Development and Compensation Committee Interlocks and Insider Participation” and “Leadership Development and Compensation Committee Report” in the 2025 Proxy Statement and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by Item 12. regarding beneficial ownership of Autoliv’s common stock is included under the caption “Security Ownership of Certain Beneficial Owners and Management” in the 2025 Proxy Statement and is incorporated herein by reference. Securities Authorized for Issuance Under the Stock Incentive Plan The following table provides information as of December 31, 2024, about the common stock that may be issued under the Stock Incentive Plan. The Company does not have any equity compensation plans that have not been approved by its stockholders. Plan Category (a) Number of Securities to be issued upon exercise of outstanding options, warrants and rights (b) Weighted- average exercise price of outstanding options, warrants and rights(2) (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))(3) Equity compensation plans approved by security holders (1) 456,849 $ 80.40 2,429,029 Equity compensation plans not approved by security holders — — — Total 456,849 $ 80.40 2,429,029 (1) Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, as amended by Amendment No. 1 dated December 17, 2010 and Amendment No. 2 dated May 8, 2012. (2) Excludes restricted stock units and performance shares which convert to shares of common stock for no consideration. (3) All such shares are available for issuance pursuant to grants of full-value stock awards. Item 13. Certain Relationships and Related Transactions, and Director Independence Information regarding the Company’s policy and procedures concerning related party transactions is included under the caption “Related Person Transactions” in the 2025 Proxy Statement and is incorporated herein by reference. Information regarding director independence can be found under the caption “Board Independence” in the 2025 Proxy Statement and is incorporated herein by reference. Item 14. Principal Accountant Fees and Services The information required by Item 9(e) of Schedule 14A regarding principal accounting fees and the information required by Item 14 regarding the pre-approval process of accounting services provided to Autoliv is included under the caption “Proposal 3. Ratification of Appointment of Independent Registered Public Accounting Firm Appointment” in the 2025 Proxy Statement and is incorporated herein by reference. ===== SIDA 168 ===== 90 PART IV Item 15. Exhibit and Financial Statement Schedules (a) Documents Filed as Part of this Report (1) Financial Statements (i) Consolidated Statements of Income – Years ended December 31, 2024, 2023 and 2022; (ii) Consolidated Statements of Comprehensive Income – Years ended December 31, 2024, 2023 and 2022; (iii) Consolidated Balance Sheets – as of December 31, 2024 and 2023; (iv) Consolidated Statements of Cash Flows – Years ended December 31, 2024, 2023 and 2022; (v) Consolidated Statements of Total Equity – as of December 31, 2024, 2023 and 2022; (vi) Notes to Consolidated Financial Statements; and (vii) Reports of Independent Registered Public Accounting Firm (PCAOB Auditor ID No. 1433). (2) Financial Statement Schedules All of the schedules specified under Regulation S-X to be provided by Autoliv have been omitted either because they are not applicable, they are not required, or the information required is included in the financial statements or notes thereto. (3) 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 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). 4.6 Description of Registrant´s Securities, incorporated by reference to Exhibit 4.13 to the Annual Report on Form 10-K (File No. 001-12933, filing date February 19, 2021). 4.7 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). 4.8 Base Listing Particulars Agreement, dated March 6, 2024, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.7 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 26, 2024). 4.9 Amended and Restated Programme Agreement, dated March 6, 2024, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.8 to the Quarterly Report on Form 10-Q (File No. 001- 12933, filing date April 26, 2024). 4.10 General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv, Inc., effective as of April 8, 2024, with Skandinaviska Enskilda Banken AB (publ) serving as custodian, incorporated herein by reference to Exhibit 4.9 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 26, 2024). ===== SIDA 169 ===== 91 10.1+ Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, incorporated herein by reference to Appendix A of the Definitive Proxy Statement of Autoliv, Inc. on Schedule 14A (filing date March 23, 2009). 10.2+ Amendment No. 1 to the Autoliv, Inc. 1997 Stock Incentive Plan as amended and restated on May 6, 2009, dated December 17, 2010, incorporated herein by reference to Exhibit 10.24 to the Annual Report on Form 10-K (File No. 001-12933, filing date February 23, 2011). 10.3+ Amendment No. 2 to the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, dated May 8, 2012, incorporated herein by reference to Exhibit 10.29 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 20, 2012). 10.4+ Amendment No. 3 to the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated, dated April 24, 2017, incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 28, 2017). 10.5 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). 10.6+ Employment Agreement, effective as of June 29, 2018, by and between Autoliv, Inc. and Mikael Bratt, incorporated herein by reference to Exhibit 10.8 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018). 10.7+ Employment Agreement, effective as of June 29, 2018, by and between Autoliv, Inc. and Anthony J. Nellis, incorporated herein by reference to Exhibit 10.14 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018). 10.8 Cooperation Agreement, dated March 1, 2019, between Autoliv, Inc. and Cevian Capital II GP Limited, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 1, 2019). 10.9+ Employment Agreement, dated March 18, 2019, between Autoliv, Inc. and Christian Swahn, incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 25, 2019). 10.10 Form of Indemnification Agreement between Autoliv, Inc. and its directors and certain of its executive officers, incorporated herein by reference to Exhibit 10.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 25, 2019). 10.11+ Employment Agreement, dated November 26, 2019 and effective as of March 1, 2020, between Autoliv, Inc. and Fredrik Westin, incorporated herein by reference to Exhibit 10.56 to the Annual Report on Form 10-K (File No. 001-12933, filing date February 21, 2020). 10.12 Facility Agreement, dated May 28, 2020, by and among Autoliv AB, as borrower, Autoliv, Inc. and Autoliv ASP, as guarantors, and AB Svensk Exportkredit, as lender, incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 17, 2020). 10.13+ Employment Agreement, dated June 8, 2020 and effective as of June 15, 2020, by between Autoliv, Inc. and Kevin Fox, incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 17, 2020). 10.14+ Employment Agreement, effective as of August 17, 2020, by and between Autoliv AB and Mikael Hagström incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 23, 2020). 10.15+ Employment Agreement, dated October 1, 2020 and effective as of November 1, 2020, by and between Autoliv Inc. and Colin Naughton incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 23, 2021). 10.16+ Amendment No. 1, effective as of April 1, 2021, to Employment Agreement, effective March 18, 2019, by and between Autoliv Inc. and Christian Swahn incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 23, 2021). 10.17+ Employment Agreement, dated December 14, 2021 and effective as of January 19, 2021, by and between Autoliv Inc. and Sng Yih incorporated herein by reference to Exhibit 10.46 to the Annual Report on Form 10-K (File No. 001-12933, filing date February 22, 2022). 10.18+ Form of Employee restricted stock units grant agreement (2022) to be used under the Autoliv, Inc 1997 Stock Incentive Plan, as amended and restated, incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022). 10.19+ Form of Employee performance share units grant agreement (2022) to be used promised under the Autoliv, Inc 1997 Stock Incentive Plan, as amended and restated, incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022). 10.20 Facilities Agreement, dated May 23, 2022, among Autoliv, Inc., Autoliv ASP, Inc., Citibank, N.A., London Branch, Mizuho Bank, Ltd., Skandinaviska Enskilda Banken AB (publ), and the other parties and lenders named therein, incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 22, 2022). ===== SIDA 170 ===== 92 10.21+ Employment Agreement, dated December 1, 2022 and effective as of January 15, 2023, by and between Autoliv, Inc. and Jonas Jademyr, incorporated herein by reference to Exhibit 10.37 to the Annual Report on Form 10-K (File No. 001-12933, filing date February 16, 2023). 10.22+ Form of Non-Employee Director Restricted Stock Unit Grant Agreement (2023) to be used under the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated, incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 21, 2023). 10.23+ Employment Agreement, dated May 17, 2023, by and between Autoliv, Inc. and Petra Albuschus incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 21, 2023). 10.24+ Amendment No. 1 to Employment Agreement, dated October 1, 2023, by and between Autoliv, Inc. and Colin Naughton incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 20, 2023). 10.25+ Employment Agreement, dated November 21, 2023, by and between Autoliv Switzerland GmbH and Magnus Jarlegren incorporated herein by reference to Exhibit 10.37 to the Annual Report on Form 10-K (File No. 001-12933, filing date February 20, 2024). 10.26+ Form of Employee 2024 restricted stock units grant agreement promised under Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001- 12933, filing date April 26, 2024). 10.27+ Form of Employee 2024 performance share units grant agreement promised under the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated incorporated by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 26, 2024). 10.28+ Autoliv, Inc. Non-Employee Director Compensation Policy effective May 1, 2024 incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 19, 2024). 10.29+ Employment Agreement, effective June 1, 2024, by and between Autoliv, Inc. and Staffan Olsson incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 19, 2024). 10.30 Revolving Credit Facility Agreement, dated July 17, 2024, among Autoliv, Inc., Autoliv ASP, and Standard Chartered Bank incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 18, 2024). 10.31+ Employment Agreement, dated September 13, 2024, by and between Autoliv (Shanghai) Management Co. Ltd. and Fabien Dumont incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 18, 2024). 19* Autoliv Insider Trading Policy. 21* Autoliv’s List of Subsidiaries. 23* Consent of Independent Registered Public Accounting Firm. 31.1* Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. 31.2* Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. 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. 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. 97.1* Autoliv, Inc. Compensation Recoupment Policy. 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 with Embedded Linkbase Document. 104* Cover Page Interactive Data File (embedded within the inline XBRL document). * Filed herewith. + Management contract or compensatory plan. † Confidential treatment requested as to portions of the exhibit. Confidential materials omitted and filed separately with the Securities and Exchange Commission. ===== SIDA 171 ===== 93 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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, as of February 20, 2025. AUTOLIV, INC. (Registrant) By /s/ Fredrik Westin Fredrik Westin Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated, as of February 20, 2025. Title Name Chairman of the Board of Directors /s/ Jan Carlson Jan Carlson Chief Executive Officer and President (Principal Executive Officer) /s/ Mikael Bratt and Director Mikael Bratt Chief Financial Officer /s/ Fredrik Westin (Principal Financial and Principal Accounting Officer) Fredrik Westin Director /s/ Laurie Brlas Laurie Brlas Director /s/ Hasse Johansson Hasse Johansson Director /s/ Leif Johansson Leif Johansson Director /s/ Adriana Karaboutis Adriana Karaboutis Director /s/ Franz-Josef Kortüm Franz-Josef Kortüm Director /s/ Frédéric Lissalde Frédéric Lissalde Director /s/ Xiaozhi Liu Xiaozhi Liu Director /s/ Gustav Lundgren Gustav Lundgren Director /s/ Martin Lundstedt Martin Lundstedt Director /s/ Thaddeus Senko Thaddeus Senko ===== SIDA 172 ===== 94 Glossary and Definitions In this report, the following company or industry specific terms and abbreviations are used: CAPITAL EMPLOYED Total equity and net debt (net cash). CAPITAL EXPENDITURES Investments in property, plant and equipment. CPV Content Per Vehicle, i.e. value of the safety products in a vehicle. EARNINGS PER SHARE Net income attributable to controlling interest relative to weighted average number of shares (net of treasury shares) assuming dilution and basic, respectively. EBITDA Earnings before interest, taxes, depreciation, and amortization GROSS MARGIN Gross profit relative to sales. MEDIUM AND LOW INCOME MARKETS Includes all markets except North America, Western Europe, Japan and South Korea. HEADCOUNT Employees plus temporary personnel. HIGH INCOME MARKETS Includes North America, Western Europe, Japan and South Korea. INVENTORY OUTSTANDING IN RELATION TO SALES Outstanding inventory relative to annualized fourth quarter sales. LEVERAGE RATIO Debt per the Policy (Net debt adjusted for pension liabilities) in relation to EBITDA per the Policy (Adjusted EBITDA) (Earnings Before Interest, Taxes, Depreciation and Amortization, other non-operating items, net, income from equity method investments and capacity alignments), see Item 7 for a calculation of this non-U.S. GAAP measure. LVP Light vehicle production of light motor vehicles with a gross weight of up to 3.5 metric tons. This 10-K includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January 2025. All rights reserved. S&P Global is a global supplier of independent industry information. The permission to use S&P Global copyrighted reports, data and information does not constitute an endorsement or approval by S&P Global of the manner, format, context, content, conclusion, opinion or viewpoint in which S&P Global reports, data and information or its derivations are used or referenced herein. NET DEBT Short and long-term debt including debt-related derivatives less cash and cash equivalents, see Non-U.S. GAAP Performance Measures in Item 7 for a reconciliation of this non-U.S. GAAP measure. ===== SIDA 173 ===== 95 NUMBER OF EMPLOYEES Employees with a continuous employment agreement, recalculated to full time equivalent heads. OEM Original Equipment Manufacturer referring to customers assembling new vehicles. OPERATING MARGIN Operating income relative to sales. PAYABLES OUTSTANDING IN RELATION TO SALES Outstanding payables relative to annualized fourth quarter sales. RECEIVABLES OUTSTANDING IN RELATION TO SALES Outstanding receivables relative to annualized fourth quarter sales. RETURN ON CAPITAL EMPLOYED Operating income and equity in earnings of affiliates, relative to average capital employed. RETURN ON TOTAL EQUITY Net income relative to average total equity. ===== SIDA 174 ===== Multi- Y ear Financial Summary (Dollars in millions, except per share data, unaudited) 2024 2023 2022 2021 2020 Sales and Income Net sales $10,390 $10,475 $8,842 $8,230 $7 ,447 Airbags, Steering Wheels and Other 1) 7 ,023 7 ,055 5,807 5,380 4,824 Seatbelt Products and Other 1) 3,367 3,420 3,035 2,850 2,623 Operating income 979 690 659 675 382 Net income attributable to controlling interest 646 488 423 435 187 Earnings per share – basic 2) 8.06 5.74 4.86 4.97 2.14 Earnings per share – diluted 2) 8.04 5.72 4.85 4.96 2.14 Gross margin 3) 18.5% 17 .4% 15.8% 18.4% 16.7% S,G&A in relation to sales (5.1)% (4.8)% (4.9)% (5.3)% (5.2)% R,D&E net in relation to sales (3.8)% (4.1)% (4.4)% (4.7)% (5.0)% Operating margin 4) 9.4% 6.6% 7 .5% 8.2% 5.1% Adjusted operating margin 5, 6) 9.7% 8.8% 6.8% 8.3% 6.5% Balance Sheet Trade working capital 6, 7) 1,115 1,232 1,183 1,332 1,366 Trade working capital in relation to sales 8) 10.7% 11.2% 12.7% 15.7% 13.6% Receivables outstanding in relation to sales 9) 19.0% 20.0% 20.4% 20.0% 18.1% Inventory outstanding in relation to sales 10) 8.8% 9.2% 10.4% 9.2% 7 .9% Payables outstanding in relation to sales 11) 17 .2% 18.0% 18.1% 13.5% 12.5% Total equity 2,285 2,570 2,626 2,648 2,423 Total parent shareholders’ equity per share 29.26 30.93 30.30 30.10 27 .56 Current assets excluding cash 3,153 3,475 3,119 2,705 3,091 Property , plant and equipment, net 2,239 2,192 1,960 1,855 1,869 Goodwill and Intangible assets 1,375 1,385 1,382 1,395 1,412 Capital employed 3,840 3,937 3,810 3,700 3,637 Net debt 6) 1,554 1,367 1,184 1,052 1,214 Total assets 7 ,804 8,332 7 ,717 7 ,537 8,157 Long-term debt 1,522 1,324 1,054 1,662 2,110 Return on capital employed 12) 25.0% 17 .7% 17 .5% 18.3% 10.0% Return on total equity 13) 27 .2% 19.0% 16.3% 17 .1% 9.0% Total equity ratio 29% 31% 34% 35% 30% Cash flow and other data Operating cash flow 1,059 982 713 754 849 Depreciation and amortization 387 378 363 394 371 Capital expenditures, net 563 569 485 454 340 Capital expenditures, net in relation to sales 5.4% 5.4% 5.5% 5.5% 4.6% Free operating cash flow 6, 14) 497 414 228 300 509 Cash conversion 6, 15) 77% 85% 54% 69% 270% Direct shareholder return 16) 771 577 339 165 54 Cash dividends paid per share 2.74 2.66 2.58 1.88 0.62 Number of shares outstanding (millions) 17) 7 7. 7 82.6 86.2 87 .5 87 .4 Number of employees, December 31 59,500 62,900 61,700 55,900 61,000 1) Including Corporate sales 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5) Excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 6) Non-GAAP measure, for reconciliation see Financial Report October - December 2024 filed with Form 8-K on January 31, 2025. 7) Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outstanding inventory relative to annualized fourth quarter sales. 11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method investments, relative to average capital employed. 13) Income relative to average total equity . 14) Operating cash flow less Capital expenditures, net. 15) Free operating cash flow relative to Net income. 16) Dividends paid and Shares repurchased. 17) At year end, excluding dilution and net of treasury shares. 77 ===== SIDA 175 ===== More Lives Saved More Life Lived Each year , Autoliv’s products save approximately 37 ,000 lives.