Total headcount (employees plus temporary hourly workers) increased by approximately 2,800 during 2004 to 39,800. This 8% increase in headcount could be compared with a 12% increase in the production volume output for airbags and 23% for seat belts.
Of the headcount increase, 90% was concentrated in low-labor-cost countries, and only 5% was attributed to fixed employees in high-labor-cost countries.
Compensation paid to Directors and executive officers is reported, as for all public U.S. companies, in the Company’s proxy statement that is distributed to the Company’s shareholders.
In December 2003, a U.S. Federal District Court awarded a supplier of Autoliv ASP, Inc. (a wholly-owned subsidiary of Autoliv, Inc.), approximately $27 million plus pre-judgment interest of $6 million in connection with a commercial dispute.
Autoliv has appealed the verdict and the supplier has cross-appealed in regard to the calculation of the amount of pre-judgment interest. The appeal and cross-appeal are currently pending before the United States Court of Appeals for the Federal Circuit. Briefing before the court of appeals is completed, but oral argument has not yet been scheduled.
While legal proceedings are subject to inherent uncertainty, Autoliv believes that it has meritorious grounds for appeal, which would result in a new trial, and that it is possible that the judgment could be eliminated or substantially altered. Consequently, in the opinion of the Company’s management, it is not possible to determine the final outcome of this litigation at this time.
It cannot be assured that the final outcome of this litigation will not result in a loss that will have to be recorded by the Company.