AUTOLIV INC Leases Disclosure
3. Leases
The Company has operating leases for offices, manufacturing and research buildings, machinery, cars, data processing and other equipment. The Company’s leases have remaining lease terms of 1 to 43 years, some of which include options to extend the leases for up to 25 years, and some of which include options to terminate the leases within one year.
As of December 31, 2025, the Company has no additional material operating leases that have not yet commenced.
The following tables provide information about the Company’s operating leases. The Company has not identified any material finance leases as of December 31, 2025; therefore, the finance lease components have not been disclosed in the tables below.
Lease cost |
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(Dollars in millions) |
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2025 |
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2024 |
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2023 |
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Operating lease cost |
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$ |
48 |
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$ |
47 |
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$ |
54 |
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Short-term lease cost |
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7 |
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6 |
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8 |
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Variable lease cost |
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7 |
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6 |
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5 |
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Sublease income |
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(1 |
) |
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(1 |
) |
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(1 |
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Total lease cost |
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$ |
62 |
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$ |
58 |
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$ |
66 |
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Other information |
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Year ended or as of |
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(Dollars in millions) |
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2025 |
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2024 |
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Cash paid for amounts included in the measurement of operating lease liabilities |
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$ |
49 |
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$ |
45 |
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Right-of-use assets obtained in exchange for new operating lease liabilities |
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46 |
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27 |
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Weighted-average remaining lease term - operating leases |
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8.7 years |
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8.9 years |
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Weighted-average discount rate - operating leases |
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3.2 |
% |
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3.3 |
% |
Maturities of operating lease liabilities (undiscounted cash flows) are as follows: |
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(Dollars in millions) |
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Maturities |
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2026 |
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$ |
41 |
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2027 |
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31 |
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2028 |
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21 |
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2029 |
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15 |
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2030 |
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10 |
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Thereafter |
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72 |
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Total operating lease payments |
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189 |
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Less imputed interest |
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(24 |
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Total operating lease liabilities |
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$ |
165 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 22, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.