Autoliv Releasing Reserves; Tax Audit Resolved (Stockholm, June 7, 2011) - - - Autoliv, Inc. (NYSE: ALV, and SSE: ALIV sdb) announced today that the audit of its U.S. 2003-2005 tax returns has been concluded without any material changes in such returns. Together with developments in other proceedings, this will allow Autoliv to release approximately $24 million of its tax reserves. As disclosed in Autoliv's discussion of its 2003-2005 tax returns in previous SEC filings, the United States Internal Revenue Service's Appeals Office, consistent with Autoliv's position, concluded that the IRS audit team's proposed adjustments relating to alleged incorrect transfer pricing should be withdrawn. The implementation of that decision has been awaiting the completion of a review by the Joint Committee on Taxation of the U.S. Congress. The Company has been notified by the IRS that the Committee has cleared the Appeals Office resolution of Autoliv's 2003-2005 tax returns, and the Company has now completed the formalities required to close the IRS audit. As a result of the conclusion of this tax audit and other proceedings, the Company will release approximately $24 million of its reserves in the second quarter. This discrete, one-time, non-cash item in the income statement is currently expected to increase earnings per share in the second quarter by approximately 26 cents, assuming dilution. Additionally, Autoliv's working capital will be increased accordingly. Inquiries: Jan Carlson, President and CEO, Autoliv Inc. Tel +46-8-587 20 600 Mats Wallin, Vice President Finance and CFO, Autoliv Inc. Tel +46-8-587 20 600
Autoliv Releasing Reserves; Tax Audit Resolved
| Source: Autoliv Inc.